Loan modifications or else!
Barney Frank has stated that the legislative branch is greatly disappointed with the initial results of Obama’s Making Home Affordable Plan. If the lending industry doesn’t increase successful loan modifications, bankruptcy legislation will return. read article here
All negative reviews for Obama housing plan
CNN is reporting that they received about 500 complaints from homeowners trying to obtain loan modifications through the Obama housing plan. They have featured some of those stories here. read original article
Housing Prices Being Restored
Home prices throughout the nation have fallen 19% over the last 12 months. Home prices are only 7% more than where they were in early 2000. Read full article here
Stockton Short Sales
We continue to see in an increase in the number of short sale listings on the market. Out team is currently closing in excess of 90% of the short sales we list. Average time for approvals is 3.6 months. Patience is the key!
Two California Banks Fail
Vineyard Bank NA in Rancho Cucamonga and Temecula Valley Bank inTemecula both suffered the same tragic fate last week. Read full article here.
Senate Studies Foreclosure Prevention Efforts
Is the Making Home Affordable Program a bang or a bust? The Senate Banking Committee heard reports from industry leaders on Thursday regarding the statistics of actual foreclosure preventions and successful loan modifications. Even with the best expectations, millions of foreclosures are still predicted. Is enough being done? Read Full Article Here
Opition - ARMs worse than subprime
Very interesting article from Tim Iacono From July 13th, 2009. read here
Wells Fargo sues itself!
I have often wondered how the banking industry got us into the mess we are currently in. This recent article explains a lot. Wells Fargo sues itself. Total lack of common and business sense. And waste of money, time and effort. Maybe the Stockton short sales we process with Wells could move a little bit faster it the monies wasted on this ridiculous legal process were diverted to their loss mitigation department!
http://www.foxbusiness.com/story/markets/al-lewis-wells-fargo-bank-sues/#
Pending sales up for four months
Pending home sales have been rising for four consecutive months, made possible by affordable home prices and a first-time buyer tax credit, according to the National Association of Realtors (NAR).
The Pending Home Sales Index, increased to 90.7 in May up from 90.6 in April, and is 6.7% higher than May 2008, when it was 85.
However, NAR chief economist warns “Closed existing-home sales have improved but are coming in lower than expected, because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said in a statement, alluding to the Home Valuation Code of Conduct that went into effect in May. “Rises in contract activity show buyers are becoming more active, even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
According to NAR President the appraisal issue complicates matters “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he said. “In many cases, appraisers from outside the area are being used, but as everyone knows, real estate is local, and appraisals should be done by an expert with local expertise.”
PMI projects lower home prices in 2011
In a new report released from PMI Mortgage Insurance Co. it is projected that 60% of the top 50 metropolitan statistical areas (MSAs) have a greater than 50% probability of lower home prices in the first quarter of 2011.
According to PMI, as many as 324 of the nation’s 381 MSAs now face increased risk of lower home prices in 2011. Florida, California, Nevada and Arizona continue to have the highest risk scores - 36 of the most risky MSAs are located in these four states - but the risk is now spreading across all regions of the nation, due to the increases in unemployment and foreclosure rates.
“Rapidly rising foreclosure and unemployment rates, continuing declines in house prices and weakening consumer demand all worked to increase risk in the general economy, and the housing market, specifically,” says David Berson, PMI’s chief economist and strategist. “As a result of the continued weakness in prices, and the relatively low level of interest rates, improvements in affordability across the nation’s MSAs will continue to incentivize repeat and first-time home buyers back into the market.”
