Lynne Pope is your Realtor in Hermosa Beach, Manhattan Beach and Redondo Beach

The pricier areas will likely have more short sales show up soon. Keep several things in mind…LENDERS- Investors are bidding up the lower income properties and this may be harder for the lenders who have to get people qualified for the conforming and Jumbo loans.

Redondo Beach may have some affordable properties show up in the short sale arena.

 NEW INFORMATION:

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

This is a very HOT topic. Stay tuned to know how this can help you buy or sell a home. As a CDPE specialist- (Certified Distressed Property Expert) expect to keep up on the latest breaking news.

Buyers are scrambling. They are starting to make multiple offers on forclosures. They are even not sure if there will be many REO  forclosures in the future for them.

The lender is first. Know what you can afford. This article has a section I think was noteworthy that I want people to read.

Mortgage rates remain significantly lower than six months ago. Back in August, the average 30-year fixed mortgage rate was 6.66%, meaning a $200,000 loan would have carried a monthly payment of $1,285.25. With the average rate now at 5.34%, the monthly payment for the same size loan would be $1,115.58, a savings of $170 per month for a homeowner refinancing now.

Survey Results

30-year fixed: 5.34% ¢â‚¬â€ unchanged from last week (avg. points: 0.41)
15-year fixed: 4.93% ¢â‚¬â€ down from 5.03% last week (avg. points: 0.41)
5/1 ARM: 5.37% ¢â‚¬â€ unchanged last week (avg. points: 0.45)

Bankrate¢â‚¬â„¢s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For more information, visit http://www.bankrate.com/mortgagerates.

Todays message to California Realtors complete m

Feb. 18, 2009

Dear C.A.R. Member,

Earlier today, President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.

The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits.  I¢â‚¬â„¢ve outlined the plan in greater detail below.

The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance.  Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.

The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are ¢â‚¬Å“underwater¢â‚¬Â on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification.  Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.

The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative¢â‚¬â„¢s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.

The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.

The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.

The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac.  The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace.  Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac¢â‚¬â„¢s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.

While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.

We¢â‚¬â„¢ll keep you updated on the Homeowner Affordability and Stability Plan as more details and information become available to us.

Sincerely,

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®
 
 

1. Fannie Mae and Freddie Mac raised limits “late” in the game and the sub-prime could not have done the damage it did had they entered sooner..some say…what about you?

2.Is it good to refinance now and lower the cost of your mortgage?400Thousand have been helped

3. If you have a high debt to income ratio will that hurt or help? The government ways if it helps you then you have to share in the profit with the gov when you resell it.

3. First time home buyer tax credit of 7500? NO-It is a zero % loan and it has to be paid back.

4.Immediate new deductions on property taxes?

5. Is 2010 or 2111 the year of the pick up for Real Estate?

6. Will there be 10 years of unparalleled growth?

7. Can you get a loan?

8. Is California ahead or behind the curve?

9. Have you found a Realtor on Linkden or Facebook?

I like writing and sometimes post to Active Rain (where I started blogging) it’s like going to my old home town. I really feel like I know so many people there. I write to speak to people- Realtors, lenders, designers are the main authors. I get the feeling right away of speaking in a group. In wordpress I am speaking to a group but it takes a little longer before I hear the responses of people reading. I should say…..I could say what do you want to hear?

People want to know when they should buy. They want the truth. There is a time to buy and a time not to buy for each person. It is individual, so unique that it is an experience that you can best understand by looking into the mirror of your own past. When did you buy?Why did you do it? Were all the key factors there that people ask about? Best price, best interest rate?  In my experience NO, NO, NO. My first home. We were wanta-have a home people. I had stopped into a real estate office and said to a Realtor-mother of a boy in my daughters class. We went over our numbers very briefly and the price of home we could afford was so low that nothing in the area would work. Homes were selling for 60K and we were in the 40 K range. It was 1976 for those either laughing or in awe. A few weeks later I got a call. There was a lady selling her home for 45K this one weekend only. If she didn’t get it then she was giving it over to a group that paints carpets and jacks up the price. We bought it that day. Our parents each kicked in 5K and we became homeowners. We had a Cal Vet loan around 8.2 % Our monthly payments went from renting at 175. to 325.  It was so much money to us that we were careful about not spending for anything other than essential. And in a few months it started to feel like normal. In 1984 we bought again. The only time we bought a home we didn’t love. We felt rushed, and as a realtor I never want anyone to make those 2 big mistakes. 3 years later it was hard to sell. It was bought and sold in the 350 range. 1986 we bought at the beach. Ocean view and 550K. I don’t remember the interest rates of either of the homes. Finally I have to say we made all the really big money we ever made in buying homes and keeping them. We did sell the first 2 and I wish we had kept the first one. Thats why I really ask deeply, can you keep this home and rent it out? It is our new social security. We can retire and have a passive income. I don’t own apartments, just homes. We are really careful and caring of the properties. The time to buy was when our family needed to buy. We had a good reason. We were led to the right house after we learned to wait and listen. That skill I take with me to help others over the hurtle of home purchase. Right time is always relative.

www.activerain.com/lynnepope