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Obama Refinance Plan and California Homeowners?
 
The federal government’s Home Affordable Refinance program is designed to help homeowners refinance their mortgages even if they owe slightly more than the current value of their homes, up to 105% of home to loan vaue. An example of this would be if your home was valued at $100,000  and your current loan amount was $105.000 then you could finance under this current program.  Most homeowners do not fit this scenarior, and some homeowners fall into a different category in which they may qualify for a loan modification San Diego homeowners program. The new loan refinance program has several layers of rules to follow to qualify for a mortgage refinance program.  First there is a maze of special offers from different lenders.  Which is the best?  Each program has different qualifications, terms, incentives so you need to way each one accordingly.

The government refinance program is complicated because the federal government has their set of rules; Fannie Mae and Freddie Mac have their own separate sets of rules; and lenders, loan servicers and mortgage insurers generally have their own rules to follow through the refinance maze.  the sad part is that a majority of homeowners do not qualify for this program which was slated to help 5 million homeowners.  With the drastic decline in home values this program will fail many homeowners as the “Hope” for homeowners government plan failed.  If you are in a situation where you can not refinance, yo are having trouble making your monthly payments or you behind.  Then a home loan modification San Diego homeowners may be the ticket for you.  The government is offering incentives to lenders to perform a loan modificatio on your mortgage loan. If your are in this situation take action now and see what your lender can do for you today.

Publisher- Michael Kench Uncategorized 5 Million, Avoiding Foreclosure, California Homeowners, Current Value, Drastic Decline, Fannie Mae, Fannie Mae And Freddie Mac, Federal Government, Freddie Mac, Government Plan, Home Loan, Home Values, Incentives, Lenders, Loan Modification, Loan Servicers, loan-modification-san-diego, Maze, Modification Request, Mortgage Insurers, Mortgage Loan, Mortgage Loans, Mortgages, Payment Options, Refinance Mortgages, San Diego, Special Offers

Home Prices Decline Beyond Expectation including major California Cities
The latest S&P/Case-Shiller index reports huge decline of 19.1% for the first quarter of 2009 home prices.  Foreclosures and short sales have caused real estate prices to decline in all major real estate markets.  This has all lead to 20% decrease in home prices and for most homeowners who are distressed and upside down in their mortgage are trying to make the more difficult choice should I try and modify my mortgage thru a loan modification San Diego program, or sell my home thru a short sale or as a last result loose my home to a foreclosure.

The following was the real estate home value decreases for the first quarter of 2009:    
 
S&P/Case-Shiller 20-city home price index, a National real estate barometer recorded the following.
Metro area 1-year change (%)
Phoenix -36.0%
Las Vegas -31.2%
San Francisco -30.1%
Miami -28.7%
Detroit -25.7%
Minneapolis -23.3%
Tampa -22.4%
Los Angeles -22.3%
San Diego -22.0%
Chicago -18.6%
Washington -18.4%
Seattle -16.4%
Atlanta -15.7%
Portland -15.3%
New York -11.8%
Charlotte -9.3%
Cleveland -9.0%
Boston -8.0%
Dallas -5.6%
Denver -5.5%

Composite-20 -18.7%
 
Source:S&P/Case-Shiller

This index dropped 18.7% year-over-year and it fell 18.5% during the last three months of 2008. The index has fallen 32 staright months in a row. 

The big problem now is that Apprasiers have ignored foreclosures in the past when evaluating home prices.  However, when markets with foreclosures out number non foreclosed properties, now the foreclosures have to be used in the market comparable pricing models which lead to more homeowners in need of a lower rate to lower their monthly payment are unable to qualify based on new property valuations which will lead more homeowners to seek a loan modification San Diego program on their home loan. 

Cities with the largest year over year declines were Phoenix down 36%, Las Vegas 31.2% and San Francisco down 30.1%.  Phoenix is down 50%, and Las Vegas is down 50% from their August 2006 highs. It was reported from Economist Mark Zandi, the founder of Moody’s Economy.com, he is optimistic that the market will stop falling sometime this summer or fall. “We need to focus on the mortgage modification program,” he said. “If that plan doesn’t work or only works as well as the other modification programs have, we’ve got a problem.”

Source: reported in Money.cnn May 26, 2009

On a further note: Existing Home Sales were reported at 4.68 Million which was actually
higher than industry expectations of 4.65 Million. The unsold inventory of homes rose to a
10.2 month level from April’s reading of 9.6, below the 11
month reading of November 2008. There still is a large supply of
homes above $750,000, which now stands at a 40-month supply. The government has done very little in providing availability of jumbo loans to help these home owners with refinancing programs.

If you are having trouble refinancing and you are considering a loan modification San Diego program on your home mortgage, it would be advisable to start the process now rather than later.  The loan modification process can take on an average of 90 days to complete the process.

Publisher- Michael Kench Uncategorized Area 1, Barometer, California Cities, Case Shiller Index, Decline, Declines, Expectation, First Quarter, Foreclosed Properties, Foreclosure, Foreclosure California, Foreclosure Loan, Foreclosure Prevention, Foreclosures, Home Price Index, Home Value, Index Reports, Last Result, Loan Modification, loan-modification-san-diego, Metro Area, Payment Options, Pricing Models, Property Valuations, San Diego Ca, Staright

Another Toxic Wave Of Bad Loans

It is no hidden secret that the most recent melt down in the real estate market was due to all the toxic loans that were originated prior to the year 2009. This led to the first wave of defaults in “sub-prime” mortgages that sparked today’s economic meltdown.  Homeowners that were effected by the first wave of mortgage defaults have had to resort to a loan modification San Diego program to save their homes, or worse became victims of a foreclosure, or a bankruptcy.

There is another wave that is on the not so distant horizon and no one is talking about it. This second wave of toxic loans is larger than the current  loans that put us in this situation in the first place.  This loans are know as “option arm” or “Alt-A” loans.  These loans are expected to hit there peak somewhere around the year 2011. 

 
The first wave of bad loans caused the banks to write down billions of dollars in bad losses and the caused the U.S stock market who purchased these toxic mortgage loans to lose trillions of dollars in market losses.  Many of these loans were purchased by middle income investors who were led to believe that these loans provided multiple options that regardless of what happened with the economy they would have several payment options they could choose to get them through any situation.  And since the general consensus at the time that real estate was going to keep going up they could not use a simpler, better loan product on their real estate purchase.

Many borrowers were mislead!  They were not properly explained the downside to negative amortization of the loan provision.  They were not explained properly how much these loans could adjust upwards.  Many homeowners that hold these type of mortgage loans are not aware that some of these type of loans could reset making their home mortgage payments double which will lead to more homeowners needing a loan modification San Diego program on their home loan or worse eventually lead to foreclosure on their home.

If you have a bad loan and have the ability of refinancing out of this loan a good source would be Home Loan Refinance Online  for the best refinance rates and loan programs.  If you home loan is up side down in value more than 105% loan to value you should consider a home loan mortgage modification on your loan to get out from under this bad loan so when interest rates start moving back up or your loan resets you will not put yourself in a crisis situation.

Publisher: Michael Kench

Publisher- Michael Kench Uncategorized Amortization, Amortization Loan, Borrowers, Distant Horizon, Downside, First Wave, Home Mortgage Payments, Loan Modification, Loan Product, Loan Provision, loan-modification-san-diego, Market Losses, Mortgage Defaults, Mortgage Loans, Negative Amortization, New Wave, Payment Options, Second Wave, Sub Prime Mortgages, Trillions, U S Stock Market