After many months of wrangling and speculation it now appears that we will have a new housing bill. While congress and the President slap themselves on the back in congratulatory applause, one overriding issue comes to mind. Will this legislation really be effective? If we look at the components of how this is to be structured it is largely dependent upon banks willingness to reduce the principal amount of the mortgage, thereby taking a loss which would enable the borrower to reduce their … [Read more...]
We Don’t Need $30 Billion, We Just Need A Simple Proposal to Correct the Housing Market
January 12, 2008 By Leave a Comment
The housing market continues to dominate the news. This week the Countrywide problem appears to be just that, C-o-u-n-t-r-y-w-i-d-e. From coast to coast the problem just keeps growing. Looks like you will soon be making your monthly mortgage payment to Bank of America. Hillary Clinton also popped into town to unveil her economic stimulus program and what a magnificent state to do it in. Record foreclosures that are outpaced only by the number of electoral votes. She is proposing a $30 Billion … [Read more...]
Anatomy of a Short Sale – Will Someone Make a Decision?
January 6, 2008 By 3 Comments
When a property owner becomes delinquent in their house payments they can attempt what is known as a short sale. A short sale indicates that the proceeds of the sale will not cover the debt on the house, indicating the lender will be taking a loss. The question then becomes how much loss is a lender willing to accept? Or is the lender likely to make more money by allowing the house to be foreclosed on and take it to auction? Negative Equity If a home was purchased in the last couple of years, … [Read more...]
Let Me Talk To My Manager, I Think We Can Get You Into A House Today
December 5, 2007 By 1 Comment
It is becoming apparent that we will soon know what the government's response will be to the growing real estate mortgage crisis. In this upcoming election year, nobody wants to appear insensitive to homeowners possibly losing their homes, so many knee jerk reactions are being formulated. How will a plan of this magnitude even become close to being fair? As you can see from the chart below, many adjustable rate mortgages are about to reset and foreclosures are expected to increase as … [Read more...]
Foreclosure – It Happens
November 30, 2007 By 1 Comment
A few days ago we looked at the number of properties that were in some stage of foreclosure in the City of Pasadena. With so much talk these days about the increasing number of foreclosure's we thought we would attempt to explain the process for a property that goes into default. To get a good understanding of what's involved, we need to first explain what happens when you purchase real property. In California we use a deed of trust. Other states may use a mortgage. The deed of trust provides … [Read more...]
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