Your tax dollars at work….Citi continues with headquarter renovations!
Citi is moving forward with the multi-million dollar face lift of their New York headquarters. When will the insanity stop? Meanwhile I continue to experience nothing but frustration with Citi’s loss mitigation department in my ongoing effort to negotiate Stockton short sales.
It’s going to get ugly!
American Home Mortgage Servicing, Inc., the country’s largest independent mortgage servicer has been sued by hedge fund investor, Carrington Capital…and now AMHS is counter suing alleging racketeering. Meanwhile the number of Stockton foreclosures and short sales is growing. Can’t they all just get along?
FHA First Payment Defaults Skyrocketing!
FHA first payment default rate are increasing dramatically as FHA becomes the only game in town for buyers with less than perfect credit and minimal downpayments. The same unscrupulous lenders that got is into the sub prime mess are now pushing FHA. /t compound the losses FHA has recently increased their lending limites and The House is debating a bill to bring back seller assisted down payments. What is the government going to do to stop the fraud and prevent another meltdown? Meanwhile the Stockton real estate market continues to languish. The number of Stockton foreclosures and Stockton short sales are increasing.
Credit Card Defaults Reach 20 Year High!
Credit card defaults are up and expected to be double digits as the economy continues to tank.
Watch out California….here comes the foreclosure wave!
February volume of Notice of Defaults, auction sales and negative equity at time of foreclosure SURGED over 20% . No surprise. Will only get worse as the lender and servicer moratoriums are lifted. We expect the number of Stockton short sales and Stockton foreclosures to increase dramatically over the next few months.
Citibank profits
I have a friend that hasn’t made a full mortgage payment to Citimortgage in a year and they have not foreclosed. Only recently have the threats of foreclosure started. Citi has been delaying the process and accepting substantially discounted payment. Maybe this is why they were “profitable” the first quarter. Stay tuned, I expect many value priced homes for sale in Stockton!
Here comes the foreclosure tsunami! Foreclosure filings up 30% February
Over 10% of loans are past due or in foreclosure. Expect may great Stockton real estate bargins as inventory builds and the “business saavy” banks slash prices!
Cash is still king!
Cash investors are back and snapping up bargains. Banks are willing to accept a cash offer for less than a offer with financing to close fast and get the inventory off the books. Now is the time to buy Stockton real estate and short sales. Rent the property and have a positive cash flow.
dailybusinessreview.com article
Open the market to well qualified investors!
My understanding is that 10- 15% of homeowners in trouble will be helped by the Obama plan. Probably less in the Central Valley. Nationwide 60% of households have the credit score necessary to purchase a home and only 20% have the necessary down payment. Again, probably less in the Valley. It is also estimated that around 80% of the homes that were foreclosed on in the past 12 months have actually been listed. Who is going to buy the tsunami of foreclosures coming on the market? The brain trust at Fannie and Freddie have limited the number of mortgages an individual can hold in attempt to limit the number of investors in the market. Isn’t it about time this policy is changed? Shouldn’t well-heeled investors with a 20- 30% down payment, excellent credit and liquidity be able to help get us out of this mess and stabilize the Stockton real estate market? Open the market to well qualified investors and stop Stockton short sale and foreclosures!
There they go again…a new bill in the House of Representatives would bring back 100% financing!
H.R. 600 is under consideration in the House of Representatives. If passed, it will restore a lending practice that was barred last year with the passing of the Housing and Economic Recovery Act of 200, seller funded down payment assistance. This type of lending is destructive for our housing market and the nation’s economy as a whole. The bill facilitates home purchases by buyers that are not financially prepared to purchase a home by providing a 100% financing option. Ring a bell? This is the same type of loose lending that got us into the current mess and will only perpetuate the short sale and foreclosure problems. If a buyer can’t scrape together the 3.5% needed to purchase a home maybe they shouldn’t be buying! Warren Buffet last week suggested that maybe the minimum down payment should be 10%. I agree with Warren. Bring sanity back to credit underwriting!
