NOW THAT BUYERS AND RE-FINANCE HOMEOWNERS MUST QUALIFY...THE REFINANCE MARKET IS HEADING INTO THE TANK

By
Real Estate Agent with Thomas Waite Real Estate Broker
http://actvra.in/ycP

Sorry to rain on your weekends (it’s raining as I write this email), however, the news about ALL of the homeowners who were going to be saved by the latest, “Underwater Refi Scheme”, is not working out as planned.  The largest drop off is in the FHA and HUD sponsored programs…the ones who were coming to SAVE the unfortunate homeowners. 

 

APPRAISALS are the largest sticking point.  Appraisers think the market is still heading downward and are throwing the proverbial; “Monkey Wrench” in the Fed’s saving the homeowner works.

 

I apologize but I think we are looking at another down trend in real estate as the market struggles to absorb all of the “Phantom Market” (homes which are foreclosed and sitting vacant or sitting with former owners waiting for eviction…for years) over-supply of properties.

 

No matter what “happy talk” you hear…we’re STILL in Elvis mode. 

 

If someone you know needs or wants to sell, especially if they are having loan troubles or are in foreclosurte…”It’s Now Or Never”.  Have them call me now!!!

 

CNBC Real Estate Reporter and Analyst Diana Olick has the full story below...

 

 

 

If you have a friend whose house is “Under Water” (the loan is larger than the sale value of the house), advise them to consider selling NOW.  Get the price right and sell on a Short Sale…Jamie Dimon’s company…Chase Bank is paying up to $30,000 in moving expenses “Walking Away Money” if the seller cooperates in a short sale and doesn’t damage the home or obstruct the sale.

 

QUOTE: J.P. Morgan (Chase) CEO Jamie Dimon acknowledged the stricter mortgage qualification standards..quote from the CNBC Interview:

 

“WE HAVE GONE BACK TO OLD FASHIONED UNDERWRITING. REALLY VERIFYING INCOME.”

 

 

SIX MILLION HOMEOWNERS ARE IN SOME FORM OF DEFAULT ON THEIR MORTGAGES. 

 

American home prices have already fallen farther and faster than the Great Depression price crash for homes in the 1930s. The farther down the property values descend during this economic slowdown (the Great Recession of 2006-2020?) the more properties which will fall below the "underwater line". This means that the loans on the property are larger than what can be paid by selling the property at current market value (CMV).

 

INVESTOR PATRIOTS MUST STEP UP TO THE PLATE AND PROVIDE DECENT HOUSING FOR THE DISPLACED!

 

California has a 900 mile coastline and NO ONE is capable of building anymore coastline. The Los Angeles Basin is bordered by the mountains on the east, the Pacific Ocean on the west, San Diego on the south and Malibu on the north. The warm desert breezes run into the cool ocean breezes and create a Mediterranean climate that everyone in the world to aspires to experience. However, right now, California real estate is experience the same downturn that every place in America is currently experiencing.

 

Apartment Building Investments in Orange County CA are going to be a spectacular move in the very near future and will begin their upside value appreciation as the single family market continues to deteriorate.

 

The more homeowners who lose their homes to foreclosure or short sale, the more apartments will be needed. Building new apartments in North Orange County, CA is nearly out of the question because the cost of small vacant parcels makes the cost of new construction prohibitive.

 

Over the past 20 years the Cities have created such stringent "off street" parking restrictions that most of the older 4 Plex sized parcels no longer qualify without a costly building code "variance".

So, buy Orange County Apartment Buildings before the prices and interest rates go up, again.

 Call me Now!

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Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205,  CYPRESS, CA 90630

714-895-2174 Direct; 714-398-8292 Fax  Tom@TomWaite.com

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Show All Comments
Rainmaker
531,462
Ed & Tracy Oliva
West USA Realty - Arizona - Pinetop Lakeside, AZ
Arizona Agents

Tom:This is sad but true,I Don't know what the government is thinking.good luck with your business in 2012.  E

Apr 01, 2012 04:04 AM #1
Rainmaker
487,038
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Funny how homeowners get their hopes up and then they get smashed to pieces. How many programs have been designed to help but in the end are not successful.

Apr 01, 2012 04:58 AM #2
Rainmaker
147,070
Richard and Jean Murphy
Harborview Properties - Portland, ME
(207) 712-4796

More stats, arrrgh. Actually any information is good and i appreciate the link that i would not have seen.

Apr 01, 2012 05:45 AM #3
Rainmaker
697,591
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

It's just one big circle.  Nice post and very informative.  I actually tried to re-fi one of my rentals, to no avail.  Sad but true.

Apr 01, 2012 06:56 AM #4
Rainmaker
892,763
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tom, these programs sound good on the surface, but when it gets time to implement there always seem to be many hurdles to overcome to take advantage of them.

Apr 01, 2012 08:08 AM #5
Rainer
34,376
Jaime Herrera
LION - El Paso, TX

A cousin of mine recently told me that it takes the government in California $139 to deliver $1 in government assistance to families who need it. Could that possibly be true??? If it is, that's Bureaucracy at its worst, even if it creates hundreds of jobs for government workers. 

Apr 01, 2012 09:12 AM #6
Rainer
157,536
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

I'm still seeing lots of challenges with buyer financing, especially with FHA and those pesky out of area, desperately inexperienced appraisers.

No wonder so many listing agents advise their sellers not to consider FHA offers, especially when written for more than 10% above list price yet subject to appraisal, versus conventional with 40% down.  Do those buyer agents really think they're fooling anybody?

Good post, thanks for sharing it.

Apr 01, 2012 09:27 AM #7
Rainer
122,089
Kirsten Mellinger
Emerald Funding & Realty - Simi Valley, CA
Ventura County Real Estate

Chase is offering $30,000???  What's the criteria?

Apr 01, 2012 10:43 AM #8
Rainmaker
1,212,538
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I'm with you, Mike. Those HARP refinances are easy. As long as it's a Fannie Mae or Freddie Mac loan, no appraisal necessary. Maybe this post is about a home that is not underwater?

Apr 01, 2012 01:31 PM #10
Ambassador
1,433,152
Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Phoenix Real Estate Agent, CRB, CRS 602-380-4886

I've been hearing good things here in AZ regarding the new harp program as well.  Our market is making a come back - loud and clear.  Real estate is local.  

Apr 01, 2012 06:10 PM #11
Ambassador
1,555,894
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Tom - Maybe Harp 2.0 will turn out to be more useful than some of the other plans.  This shouldn't be effected by appraisals.

Apr 01, 2012 09:06 PM #12
Rainmaker
1,831,040
Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Yes, difficult to refinance when there's little equity and harsh underwriting qualifications.

Apr 02, 2012 02:57 AM #13
Rainmaker
1,053,569
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Tom Congrats on the Featured Post, long time no see! I have noticed activity picking up in all price points from the low end to the multi-million market in the Greater Los Angeles area, now we just need to see if it continues!

Apr 04, 2012 11:55 PM #18
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Rainmaker
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Tom Waite

So Cal-Apartment Bldg Investments
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