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Some say we are creating another housing bubble, some say we aren't. I think we need to wait and see what the investors do this year and maybe next.
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I am hearing sounds of different parts of the gov't wanting to ease credit. Until enough parts come together, we will keep the high credit requirements and high down payments. There are too many penalties to get the mortgage companies to ease up at this time. Until the gov't decides not to penalize the mortgage companies for having "too many " defaults, the banks will not want to risk their good names and funds.
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One of my investor news letters is saying that due to the world economies having difficulties, the dollar is in good condition and it will stay that way for a while. The readers are encouraged to invest in, among other things, real estate. This year may remain good for those who make a living at this. -
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Nat'l Real Estate Post:
CFPB has just fined MGIC, Radian, Genworth and United Guarentee $15 million for paying kickbacks, referral fees, to lenders for directing business their way. While HUD started the investigation a while back, they are giving the CFPB the money. That is because HUD keeps saying they need a bailout and will probably get it while the CFPB is underfunded and probably couldn't get more from congress. The mortgage insurance companies are restricted from doing this for 10 yrs. Question: what will make referral fees any more legal, moral or ethical in 10 yrs? The price of mortgage insurance has been decreasing recently, but if the MI companies continue to be fined, the price of MI will rise. However, the price increases are just going to fund gov't departments. (Sounds like a sneaker tax to me).
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HUD's Office of Native American Programs is once again lending to Native Americans and Alaska Native families with the Section 184 Home Loan Guarrentee Program. This can be used for rehab's, new construction and purchasing a home, but not refi's. This is in 37 states and will probably expand.
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The 20 best cities for buying rentals are:
1) Memphis, TN
2) Saginaw, MI
3) Toledo, OH
4) Ocala, FL
5) Las Vegas, NV
6) Palm Bay, FL
7) Atlanta, GA
8) Jacksonville, FL
9) Deltona, FL
10) Springfield, MO
11) Tampa, FL
12) Port St. Lucie, FL
13) Orlando, FL
14) Phoenix, AZ
15) Detroit, MI
16) Lakeland, FL
17) Kansas City, MO-KS
18) Dayton, FL
19) Syracuse, FL
20) Ogden, UT
kpanchuck@housingwire.com
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National Real Estate Post:
Fannie Mae just got $116 billion from the Treasury dept to cover the losses in the dark years while recording $17 billion in profits and have paid back $36 billion. Over the next 10 years they will be able to pay back all of it with interest.
Housing inventory is still in short supply. Until the homeowners who are presently underwater recover enough to sell their homes, that will continue and prices will rise. It will take 2-4 yrs to make the transition.- Barry Habib
The average time to foreclose went up in 39 states in the first quarter this year.
Combo purchase money loans (piggybacking)- what home buyers used in the past to skirt the mortgage insurance requirement. It is a first loan of 80% and a second loan of, say, 15% and 5% down payment. This is what put Fannie Mae in the hole the last time around. Navy Federal Union and the Nassau Federal Union are offering loans of 100% financing which are not VA loans. These, along with hard money loans, are making a comeback. (So my question is, who is monitoring these developments which are contrary to the laws voted into being to prevent these questionable practices?)
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I don't know if you have noticed how that over the last few months the housing news has been quite contradictory. It shows how in flux we still are in the economy. Until the housing regulations and the other new laws are enforced or voted out, we will still have great uncertainty in all sectors except maybe the oil and gas industry. Housing is a manifestation of wealth not the creator of it.
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When investors pull out of the market, more homes will be bought with loans than with cash.
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Most people are as happy as they make up their minds to be.-- A. Lincoln
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National Real Estate Post:
In Arizona, Realtors are getting around a HUD requirement that says when a home becomes HUD property, the pool must be emptied, but when it is under contract and appraised, the pool must be full. The Realtors are filling the pool a couple days before the appraisal, so the filter and pump seem to be in working order. (Works for me.)
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National Real Estate Post:
A recent offer was accepted on a home which wasn't the highest or cash. Instead, the offer was accompanied by a letter explaining how the home was perfect for their family, how they weren't investors, and pictures of the offering family. That offer won over an offer that was $70k above asking price.
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Remember that an internal memo in the IRS has been discovered which says they have the right to read your emails.
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The Home Affordable
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