Mortgage Update

I wish all of us the very best for 2009! Out with the Old and in with the New!   The spirits are up, rates are down, the bottom of the market is in sight, and the (new) government looks ready to actually do something useful. Opportunity will come knocking this year! Let's get ready! - Paul   PLAN...

  Good news, good news, and good news. Rates are at a 37-year low, buyers are starting to re-appear in California (isn't that where everything starts?), and the terms of loan modifications are getting better all the time. A sign of good things to come in 2009? //  A small follow up on USA loans b...

  If you have an FHA loan we can adjust your rate downward as market rates decrease for a mere $395 - that's it!  (below) // Mainstream zero down programs have gone away but there's still one small exception that has - as it turns out - wide applicability (below) // Have a good week folks! - Paul...

  I am getting frequent calls for stated income loans. Problem is, they are not available, and the future of this type of loan is bleak. The second best is a hard money loan, hardly an alternative. I recommend self-employed people consult their financial advisor to consider organizing themselves ...

  Rates tanked this week. On Tuesday we were pricing the no-points no-fees 30-year fixed at 5.375%!  Is it time to jump? (See article below). The first decision to make is will you be doing a self-paid refinance or a no closing cost refinance. With a no-closing cost refi you only pay for the appr...

Loan modification service is actually a misnomer.  The proper term is Foreclosure Prevention and Risk Mitigation. The purpose is to seek the most favorable financial outcome and to provide the borrowers with a new beginning. Loan modification is the most likely outcome, but it can also pave the w...

The "easy" part of loan modification is reducing payments by lowering rates, extending loan terms (to 40, even 50 years), postponing payments, etc. The 800 lbs gorilla in the room is the issue of loan balance reduction. Homeowners with significant negative equity will ultimately accept foreclosur...

Rate spikes appear to be a thing of the past for now and rates have come down to around 6%. Contrary to news reports, loans are available for all mortgage programs. // The loan modifications landscape is changing daily. Politicians are considering it, Fannie/Freddie are trying to develop LM polic...

  The government is expected to announce up to $50 billion to directly address bad mortgages and millions of homeowners at risk of foreclosure. Roughly 10% of mortgages are in arrears, about 4 million loans, and roughly 7.5 million homeowners are under water. Let's say 10 million distress situati...

I think it is inevitable that we will end up with a universal formula for loan modifications. The first initiatives are being touted now. I think it will take some time due two main reasons: The RE markets need to stabilize so that the losses can be quantified, and so that each loan mod granted i...