Is anyone reading my blog?
There is a certain amount of hope that when I write a blog there is someone benefiting from "my vast knowledge" (he,he).
Of course everyone wants to be heard. I am no exception. Do I have vast knowledge? No, not really, but I do try. I read articles regarding Real Estate and when I see something of interest I will quote it or paraphrase to make it fit. If appropriate I will say where I got the information.
I started my blogs to help people who are new to Real Estate understand what they might need to know, or should know, when they purchase or sell Real Estate.
I didn't want to put anything personal which so many of the bloggers do. That is not a good idea, not my attitude, but law enforcement, lawyers and many other professionals that write regarding bloggers.
One does need to be careful.
Getting to Real Estate.
My acquaintance that usually has some interesting information regarding the market included in his interest rate notification this morning that Hedge Fund Manager, John Paulson, who in 2007 made billions of dollars betting that Real Estate housing market pricing was going to fall is now betting that the market will increase from 3 to 5% this year and as much as 8 to 12% next year.
Even if he is only partially correct and it increases by 2% that would be very good for him and the homeowner and Real Estate investors. (partially gathered from MMG).
So the point is, if you already have a home, hang on to it for awhile longer and of course you will recoup some of your losses and if you are buying now is the time to buy so you can get in on the ground floor.
Showing posts with label Real Estate Troubles. Show all posts
Showing posts with label Real Estate Troubles. Show all posts
Wednesday, May 12, 2010
Wednesday, March 17, 2010
Checking the Real Estate Market
Good morning.
Every morning I check my email for contacts from Real Estate agents, Mortgage companies, Banks, family and friends.
One email I look forward to is from Dustin Maciel of Maciel Mortgage. He provides updates on current mortgage rates, trends and possible increase or decrease of mortgage rates according to what the banks and the government may or may not be doing.
I often find his comments with information that I can pass on to my clients, or discuss with other agents in my office.
Watching the news on a daily basis and seeing what is happening in the stock and commodities market and the banking industry can be confusing. They all say that the current Real Estate Market is headed down. In other words, more difficult for sellers because buyers find it hard to get loans. Buyers that used to qualify easily for a Real Estate loan now find it more difficult, and those who have questionable 'stated' income must now prove income. Those with past credit issues must now prove by longer periods of good credit before lenders will consider them a good risk.
Don't get us wrong. Yes it is more difficult, with banks asking for more information, better proof of income, work history, proof of accounts, better explanation of current and past credit issues, etc. but it is possible to get a loan.
Having patience is important and don't take anything they ask for personally. It is all business, different from what was done in the past, but they feel it is in their best interest to prove to their investors that they are using due diligence in using their money in the Real Estate market.
When your loan goes through and escrow closes, you will, as those in the past felt and know, that you made it. You met their requirements and the home is now yours. A feeling of relief, excitement and wonder.
Congratulations!
Every morning I check my email for contacts from Real Estate agents, Mortgage companies, Banks, family and friends.
One email I look forward to is from Dustin Maciel of Maciel Mortgage. He provides updates on current mortgage rates, trends and possible increase or decrease of mortgage rates according to what the banks and the government may or may not be doing.
I often find his comments with information that I can pass on to my clients, or discuss with other agents in my office.
Watching the news on a daily basis and seeing what is happening in the stock and commodities market and the banking industry can be confusing. They all say that the current Real Estate Market is headed down. In other words, more difficult for sellers because buyers find it hard to get loans. Buyers that used to qualify easily for a Real Estate loan now find it more difficult, and those who have questionable 'stated' income must now prove income. Those with past credit issues must now prove by longer periods of good credit before lenders will consider them a good risk.
Don't get us wrong. Yes it is more difficult, with banks asking for more information, better proof of income, work history, proof of accounts, better explanation of current and past credit issues, etc. but it is possible to get a loan.
Having patience is important and don't take anything they ask for personally. It is all business, different from what was done in the past, but they feel it is in their best interest to prove to their investors that they are using due diligence in using their money in the Real Estate market.
When your loan goes through and escrow closes, you will, as those in the past felt and know, that you made it. You met their requirements and the home is now yours. A feeling of relief, excitement and wonder.
Congratulations!
Friday, April 11, 2008
What's with this market?
The Real Estate market has taken a real hit over the past eighteen months. Many financial institutions have either gone out of business or stopped doing what is called "sub-prime" loans.
A "sub-prime" loan is a loan that was made (at a higher interest rate) to a buyer that could not qualify for a conventional, FHA or VA approved loans. Either their income was not verifiable, their income was marginal, they had a less than perfect credit history, or for some other reason they wouldn't qualify.
Too many borrowers took a "Teaser" loan where the interest rate started at a much lower than market level interest rate, and in two to three years would be adjusted upwards, often at a higher than market level to make up for the deficiency in interest paid or have the deficiency added to the end of the loan where you would pay interest on interest. Unfortunately most could only qualify for the teaser rate and planned to sell or refinance before the new interest rate took affect.
Several borrowers also took an "ARM" (Adjustable Rate Mortgage) where they hoped that their income would be increased, they would sell before the increase occurred, or the interest rate and thus their payment would only rise a little bit.
To every one's shock, dismay and frustration none of these things happened. Interest rates went up higher than they hoped, they didn't get a pay raise, the appraised value of their home dropped to less than they paid and even borrowed, or they couldn't sell and are now have a home they cannot afford to make the payments on.
So what to do?
I just attended a California Association or Realtors (CAR) class on Foreclosures and Short Sales. I heard a discussion that was headed by Robert A Kleinhenz, Ph.D., Deputy Chief Economist for CAR. Basically he advised that if you bought your home before 2005 to hold unto it, make your payments and the market will rebound. But if you have to sell, price it to sell.
I'll discuss this and other topics in later postings.
According to most economists we are near the bottom of the market fallout. Though Coalinga was hit fairly hard, it is not as bad as some areas of the San Joaquin Valley. (According to CAR, Sacramento is the worst in the nation.)
Most of economists expect the market to start rebounding, albeit slowly, and by mid to late 2009, the slump to be nearly over. This does not mean it will be back to the pre-2007 levels, but that the housing market should start to see an increase in market value.
A "sub-prime" loan is a loan that was made (at a higher interest rate) to a buyer that could not qualify for a conventional, FHA or VA approved loans. Either their income was not verifiable, their income was marginal, they had a less than perfect credit history, or for some other reason they wouldn't qualify.
Too many borrowers took a "Teaser" loan where the interest rate started at a much lower than market level interest rate, and in two to three years would be adjusted upwards, often at a higher than market level to make up for the deficiency in interest paid or have the deficiency added to the end of the loan where you would pay interest on interest. Unfortunately most could only qualify for the teaser rate and planned to sell or refinance before the new interest rate took affect.
Several borrowers also took an "ARM" (Adjustable Rate Mortgage) where they hoped that their income would be increased, they would sell before the increase occurred, or the interest rate and thus their payment would only rise a little bit.
To every one's shock, dismay and frustration none of these things happened. Interest rates went up higher than they hoped, they didn't get a pay raise, the appraised value of their home dropped to less than they paid and even borrowed, or they couldn't sell and are now have a home they cannot afford to make the payments on.
So what to do?
I just attended a California Association or Realtors (CAR) class on Foreclosures and Short Sales. I heard a discussion that was headed by Robert A Kleinhenz, Ph.D., Deputy Chief Economist for CAR. Basically he advised that if you bought your home before 2005 to hold unto it, make your payments and the market will rebound. But if you have to sell, price it to sell.
I'll discuss this and other topics in later postings.
According to most economists we are near the bottom of the market fallout. Though Coalinga was hit fairly hard, it is not as bad as some areas of the San Joaquin Valley. (According to CAR, Sacramento is the worst in the nation.)
Most of economists expect the market to start rebounding, albeit slowly, and by mid to late 2009, the slump to be nearly over. This does not mean it will be back to the pre-2007 levels, but that the housing market should start to see an increase in market value.
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