Until lenders are wiling to make loans that do not make financial sense, it would seem that the short sales and foreclosure will continue in places like San Diego and other parts of California. People can not afford to buy expensive houses, if they have to have 20% down, 6 mos worth of payments and the bank and steady salary or income commensurate with the amount of the loan for which they are applying. So in one respect CAR is absolutely right. Prices will not go up until there is a stimulus - perhaps cheap available money.
But, I think there is another factor. People were willing to be house poor and risk their financial health in an up market because they had to. In a down market does anyone want to be house poor to lose money on a depreciating assets.
This bubble will unwind until people say, that house is worth the sacrifice or when supply dries up. Until then short sales and foreclosure will feed the demand we currently have and put every increasing pressure on prices.
Sales/Price Report Sept 07
Thursday, October 25, 2007
Wednesday, October 24, 2007
Foreclosure, fire insurance and short sales
If your real estate was upside down and damaged in the recent San Deigo fire, you may want to consider all your options before you rebuild.
If you had been considering a short sale you may wish to consider a deed in lieu with certain conditions set up to either preserve the status quo or improve your position vis a vis a short sale and deficiency judgments or tax liability for loan forgiveness.
Before entering into any agreement you should have your deal reviewed by san diego attorney familiar with pre-foreclosure solutions.
If you had been considering a short sale you may wish to consider a deed in lieu with certain conditions set up to either preserve the status quo or improve your position vis a vis a short sale and deficiency judgments or tax liability for loan forgiveness.
Before entering into any agreement you should have your deal reviewed by san diego attorney familiar with pre-foreclosure solutions.
Tuesday, October 23, 2007
Bankruptcy change and foreclosure remedies
This proposed change to the bankruptcy laws could give consumers more leverage with the lenders when negotiating to avoid foreclosure
Bankruptcy change could save 600,000 homeowners - Oct. 1, 2007: "NEW YORK (CNNMoney.com) -- One consumer group estimates that 600,000 foreclosures could be avoided over the next two years by making a simple change to the bankruptcy code. The Center for Responsible Lending (CRL) calls it a tweak, but it could be a significant change for homeowners and the market for mortgage-backed securities."
Bankruptcy change could save 600,000 homeowners - Oct. 1, 2007: "NEW YORK (CNNMoney.com) -- One consumer group estimates that 600,000 foreclosures could be avoided over the next two years by making a simple change to the bankruptcy code. The Center for Responsible Lending (CRL) calls it a tweak, but it could be a significant change for homeowners and the market for mortgage-backed securities."
Violations of truth in lending
A short sale and foreclosure attorney may be able to help you review your loan documents.
Mortgage ads may still be deceiving consumers, FTC says - MarketWatch: "Some of the ads were for rates as low as 1%, but didn't disclose that the stated rate was a 'payment rate,' and not the interest rate, which applied only during an initial period, according to the release. Also not disclosed in some of these ads was the loan's annual percentage rate, the uniform measure of the cost of credit that consumers can use to comparison shop for mortgages. Other ads that promoted very low monthly payments failed to give adequate disclosure of payment increases or final balloon payments."
Mortgage ads may still be deceiving consumers, FTC says - MarketWatch: "Some of the ads were for rates as low as 1%, but didn't disclose that the stated rate was a 'payment rate,' and not the interest rate, which applied only during an initial period, according to the release. Also not disclosed in some of these ads was the loan's annual percentage rate, the uniform measure of the cost of credit that consumers can use to comparison shop for mortgages. Other ads that promoted very low monthly payments failed to give adequate disclosure of payment increases or final balloon payments."
Mortgage ads may still be deceiving consumers, FTC says - MarketWatch
Before negotiating with a bank - you may wish to inquiry into this are of the law. It may give you a great deal leverage when negotiating a short sale
Mortgage ads may still be deceiving consumers, FTC says - MarketWatch: "CHICAGO (MarketWatch) -- Some of the mortgage advertisements currently appearing in Web sites, newspapers, magazines, direct mail and unsolicited email and faxes may be violating federal law, and on Tuesday the Federal Trade Commission said it was sending warning letters to more than 200 advertisers and media outlets informing them of the possible violations. Some of the claims made in the ads are 'potentially deceptive,' or violating the Truth in Lending Act, according to a FTC news release. The advertisements were identified in June during a review of claims that touted very low monthly payments or interest rates without fully disclosing other important loan terms."
Mortgage ads may still be deceiving consumers, FTC says - MarketWatch: "CHICAGO (MarketWatch) -- Some of the mortgage advertisements currently appearing in Web sites, newspapers, magazines, direct mail and unsolicited email and faxes may be violating federal law, and on Tuesday the Federal Trade Commission said it was sending warning letters to more than 200 advertisers and media outlets informing them of the possible violations. Some of the claims made in the ads are 'potentially deceptive,' or violating the Truth in Lending Act, according to a FTC news release. The advertisements were identified in June during a review of claims that touted very low monthly payments or interest rates without fully disclosing other important loan terms."
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