The FHA maximum loan limits for high-cost areas would also increase to $625,000.
Higher loan limits will make it easier for borrowers to get mortgages, because they're more likely to be traded if they are considered conforming.
Create home buyer credit. The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500.
The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments by the buyer.
The refund would be reduced gradually for single filers with adjusted gross incomes above $75,000; and for joint filers with AGIs over $150,000. "
The main focus of the this bill is the principal reduction loans that we are doing for borrower's. Although it is voluntary, we are currently working with 20 banks that are on board with us for them...we have been working on this for the last 8 months....
Submitted by temeculaguy on July 23, 2008 - 9:04pm.
Part of the FHA save your home segment of the bill
"Lenders would also agree to pay upfront fees to the FHA equal to 3% of a home's appraised value. Borrowers must agree to pay an annual premium to the FHA equal to 1.5% of their new loan balance and they must also agree to share with the government any profit they realize from selling or refinancing their home."
You think paying property taxes blows, the FHA insurance is equal to or higher than property taxes. Let me get this straight, if you are an FB, you are facing a reset, you can refi with FHA if the lender writes off 10% of the debt, pays FHA 3% and the borrower get to double their property taxes in effect, forever. Quick, get in line, this thing is going to be bigger than the iphone line.
someone tell me where I read it wrong, lets say typical S.D. FB, 500k mortgage on 400k value home, paying 2k on a teaser rate on 100k salary. New P&I is 3150 at 6.5, out the door is 4k, they arent making it.
FHA to the rescue:
New bill is 90% of debt thanks to goodness of lenders heart. 450k debt. But FHA is a higher rate usually so $2990 P&I, taxes on 400k reworked is 400-600 mo and the new fha insurance premium is 600 mo., total payment.......4k, hey, thanks for "saving" people. Now house goes into foreclosure but on fha's dime, not countryfried's.
Oh, Yeah, if yo make it through the downturn and realize a profit, they want half for helping you. If the mafia did this they would be jailed. What part of this will make people stay in their homes?
Submitted by PadreBrian on July 23, 2008 - 9:37pm.
temeculaguy, you sound like this is a bad thing. It basically means this will only be viable for a few percentage of people. Less for the taxpayers to have to fork over.
The new bill has little to do with housing at the individual borrower level, and everything to do with guaranteeing Fannie and Freddie's 6 Trillion in bonds and second party guarantees.
Our lenders - China, France, Germany, Singapore et.al. hold in the neighborhood of 2 Trillion in bad Fannie/Freddie paper. As the underlying mortgages go bad, the mess becomes international in a big way - remember these two GSE's are leveraged about 40 times - each dollar loss on a mortgage loses 40 dollars in bond equity. The bill just gave a blank check from the fed to inject whatever capital the GSE's need to stay solvent. In fact, the treasury can buy common or preferred stock at their descretion to prop up these two boat anchors.
Congress just put you and me - the tax payers on the hook for potentially 5 trillion in bond guarantees. For a group that claims to be capitalists, they sure look like Lennon style socialists.
These idiots cannot really believe that this will maintain housing prices at double their economic value and save the bad mortgages from going under while america spirals down into a serious recession. God help us all
Submitted by temeculaguy on July 23, 2008 - 10:18pm.
esmith, you are right it's 90% of market, not debt.
Padre, it's not that i'm mad about it, I just read the fine print and realize that the headline doesn't match the bill of goods. The hype will be that congress is saving people from foreclosure, keeping the market from falling and that's all people will hear (there are more voting homeowners and fb's than reverse flippers so it's a wise move). Few are "saved" and rightfully so, most should not be saved, but like bubba pointed out, we just got sold a bipartisan bill of goods that has little to do with it's headline. I smell BS, I also doubt the part about the percentages that fannie and freddie will even need the money. They are attempting to stop the invisible hand and it will slap them somehow, or probably it will slap you and me and we didn't do anything.
It wont maintain anything and the debt will go higher, why do we have to bail out things that fail, why is darwinism so bad? The market will find a way without our tax money, let it. I haven't had a drop of wine for a week, and just now I broke out one, I had to.
So, is the general consensus among Piggs that this bill will generally not be of help to SD home owners that are in trouble?
Is it also believed that the bill will not artificially prop up prices?
According to Eli Broad (interview this weekend), you won't see any benefits of the bill for the housing market. The housing market is going to get worse and the "end result is affordable homes." Of course, he is biased???
Submitted by dharmagirl on July 27, 2008 - 9:58pm.
Why dont we all just move to Punta Cana and drink lots of fruity rum drinks with little American flag drink stirs (made with non-toxic recycled plastic, of course)? Piggington Island, anyone?
I'm watching HGTV and some broad is looking at bright, airy condos in the Dom Republic in the low to mid $100s.
Back to reality...This housing bill is depressing. In one of the bill's earlier iterations, I believe it was supposed to offer buyers of foreclosure properties a tax credit up to $8000. That is apparently nowhere to be found in the passed legislation.
It'll probably do just fine in middle America where the difference in values between the utstanding loans and the current value of the homes is measured in $20,000 increments rather than $200,000 increments.
Someone who's marginal because their $700 monthly payment is jumping to $1100 per month might be able to take maximum advantage of this. Not so for someone looking at the difference of $2100 bumping to $3300.
"
The FHA maximum loan limits for high-cost areas would also increase to $625,000.
Higher loan limits will make it easier for borrowers to get mortgages, because they're more likely to be traded if they are considered conforming.
Create home buyer credit. The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500.
The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments by the buyer.
The refund would be reduced gradually for single filers with adjusted gross incomes above $75,000; and for joint filers with AGIs over $150,000. "
Folks,
The main focus of the this bill is the principal reduction loans that we are doing for borrower's. Although it is voluntary, we are currently working with 20 banks that are on board with us for them...we have been working on this for the last 8 months....
If you would like to learn more go to www.shortrefime.com
Part of the FHA save your home segment of the bill
"Lenders would also agree to pay upfront fees to the FHA equal to 3% of a home's appraised value. Borrowers must agree to pay an annual premium to the FHA equal to 1.5% of their new loan balance and they must also agree to share with the government any profit they realize from selling or refinancing their home."
You think paying property taxes blows, the FHA insurance is equal to or higher than property taxes. Let me get this straight, if you are an FB, you are facing a reset, you can refi with FHA if the lender writes off 10% of the debt, pays FHA 3% and the borrower get to double their property taxes in effect, forever. Quick, get in line, this thing is going to be bigger than the iphone line.
someone tell me where I read it wrong, lets say typical S.D. FB, 500k mortgage on 400k value home, paying 2k on a teaser rate on 100k salary. New P&I is 3150 at 6.5, out the door is 4k, they arent making it.
FHA to the rescue:
New bill is 90% of debt thanks to goodness of lenders heart. 450k debt. But FHA is a higher rate usually so $2990 P&I, taxes on 400k reworked is 400-600 mo and the new fha insurance premium is 600 mo., total payment.......4k, hey, thanks for "saving" people. Now house goes into foreclosure but on fha's dime, not countryfried's.
Oh, Yeah, if yo make it through the downturn and realize a profit, they want half for helping you. If the mafia did this they would be jailed. What part of this will make people stay in their homes?
New bill is 90% of debt thanks to goodness of lenders heart. 450k debt.
New mortgage is 90% of market value i.e. 360k in your example.
temeculaguy, you sound like this is a bad thing. It basically means this will only be viable for a few percentage of people. Less for the taxpayers to have to fork over.
The new bill has little to do with housing at the individual borrower level, and everything to do with guaranteeing Fannie and Freddie's 6 Trillion in bonds and second party guarantees.
Our lenders - China, France, Germany, Singapore et.al. hold in the neighborhood of 2 Trillion in bad Fannie/Freddie paper. As the underlying mortgages go bad, the mess becomes international in a big way - remember these two GSE's are leveraged about 40 times - each dollar loss on a mortgage loses 40 dollars in bond equity. The bill just gave a blank check from the fed to inject whatever capital the GSE's need to stay solvent. In fact, the treasury can buy common or preferred stock at their descretion to prop up these two boat anchors.
Congress just put you and me - the tax payers on the hook for potentially 5 trillion in bond guarantees. For a group that claims to be capitalists, they sure look like Lennon style socialists.
These idiots cannot really believe that this will maintain housing prices at double their economic value and save the bad mortgages from going under while america spirals down into a serious recession. God help us all
esmith, you are right it's 90% of market, not debt.
Padre, it's not that i'm mad about it, I just read the fine print and realize that the headline doesn't match the bill of goods. The hype will be that congress is saving people from foreclosure, keeping the market from falling and that's all people will hear (there are more voting homeowners and fb's than reverse flippers so it's a wise move). Few are "saved" and rightfully so, most should not be saved, but like bubba pointed out, we just got sold a bipartisan bill of goods that has little to do with it's headline. I smell BS, I also doubt the part about the percentages that fannie and freddie will even need the money. They are attempting to stop the invisible hand and it will slap them somehow, or probably it will slap you and me and we didn't do anything.
It wont maintain anything and the debt will go higher, why do we have to bail out things that fail, why is darwinism so bad? The market will find a way without our tax money, let it. I haven't had a drop of wine for a week, and just now I broke out one, I had to.
So, is the general consensus among Piggs that this bill will generally not be of help to SD home owners that are in trouble?
Is it also believed that the bill will not artificially prop up prices?
What are your opinions about how this bill will affect coastal markets such as La Jolla and PB?
So, is the general consensus among Piggs that this bill will generally not be of help to SD home owners that are in trouble?
Is it also believed that the bill will not artificially prop up prices?
According to Eli Broad (interview this weekend), you won't see any benefits of the bill for the housing market. The housing market is going to get worse and the "end result is affordable homes." Of course, he is biased???
Why dont we all just move to Punta Cana and drink lots of fruity rum drinks with little American flag drink stirs (made with non-toxic recycled plastic, of course)? Piggington Island, anyone?
I'm watching HGTV and some broad is looking at bright, airy condos in the Dom Republic in the low to mid $100s.
Back to reality...This housing bill is depressing. In one of the bill's earlier iterations, I believe it was supposed to offer buyers of foreclosure properties a tax credit up to $8000. That is apparently nowhere to be found in the passed legislation.
Where was that bottle of rum....
Arty,
Where was the Eli interview?
Here is a link to an excellent/thorough/extensive analysis of the bailout bill.
http://www.doctorhousingbubble.com/crony...
Don't count on it helping many in the San Diego area, nor propping up prices...
It'll probably do just fine in middle America where the difference in values between the utstanding loans and the current value of the homes is measured in $20,000 increments rather than $200,000 increments.
Someone who's marginal because their $700 monthly payment is jumping to $1100 per month might be able to take maximum advantage of this. Not so for someone looking at the difference of $2100 bumping to $3300.
The analysis is clear. It's a Fanny and Freddy bail out with a BS bone thrown to the "people" so that the title of it can have some accuracy.
Arty,
Where was the Eli interview?
KNX newsradio 1070, it was repeated several times this weekend (short interview less than 3 minutes).