Gov’t to target 4.5% for mortgages

[NotCranky]

JP,
You get the comps from the market sales JP. Bugs could answer this better than I, but I doubt loan modifications are going to be used for deciding any purchase or refinance comps . Under normal conditions we wouldn’t use them for a listing or a suggestion of what a buyer might offer.

I would still hope that loan modifications “comps” are higher than arm’s length transactions. Transparency would help with that one. I might be disappointed on that on though.

I have been wondering about the recordation, or lack of, for loan modifications, especially with any debt reduction. Not from a point of understanding the value of comps but from this transparency angle. I am sure some people would like to know, for instance, if the land lord gets a loan modification with debt reduction, when it is supposed to be for owner occupied. I am sure some people would like to blow the whistle on that.

So far I haven’t gone to the trouble to research this.In casual searching of property histories I have not seen evidence of debt reduction modifications, or any modifications for that matter. I haven’t been in the investigative mindset regarding this topic so I may have missed something. Next time I log into the MLS I’ll see if there are any clues in the tax research area of Tempo. Has anyone else seen it? Lazy on the issue,I keep expecting a full discussion to pop up on a housing blog :).

[jpinpb]

Rustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.

If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.

Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.

[jpinpb]

Rustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.

If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.

Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.

[jpinpb]

Rustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.

If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.

Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.

[jpinpb]

Rustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.

If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.

Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.

[jpinpb]

Rustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.

If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.

Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.

[NotCranky]

It’s an interesting topic JP.

[NotCranky]

It’s an interesting topic JP.

[NotCranky]

It’s an interesting topic JP.

[NotCranky]

It’s an interesting topic JP.

[NotCranky]

It’s an interesting topic JP.

[HLS]

I predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.

Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.

Keeps the govt from admitting how big the problem is and dealing with another FC.

1) If you think this is going to actually happen, I think that you are dreaming.

2)It is against constitutional law to interfere in private contracts.

3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.

They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.

It will take a foreclosure and a new transaction to have a lower loan balance on that property.

Maybe someone can come up with a name for the revolution…..

Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLS

[HLS]

I predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.

Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.

Keeps the govt from admitting how big the problem is and dealing with another FC.

1) If you think this is going to actually happen, I think that you are dreaming.

2)It is against constitutional law to interfere in private contracts.

3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.

They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.

It will take a foreclosure and a new transaction to have a lower loan balance on that property.

Maybe someone can come up with a name for the revolution…..

Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLS

[HLS]

I predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.

Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.

Keeps the govt from admitting how big the problem is and dealing with another FC.

1) If you think this is going to actually happen, I think that you are dreaming.

2)It is against constitutional law to interfere in private contracts.

3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.

They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.

It will take a foreclosure and a new transaction to have a lower loan balance on that property.

Maybe someone can come up with a name for the revolution…..

Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLS

[HLS]

I predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.

Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.

Keeps the govt from admitting how big the problem is and dealing with another FC.

1) If you think this is going to actually happen, I think that you are dreaming.

2)It is against constitutional law to interfere in private contracts.

3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.

They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.

It will take a foreclosure and a new transaction to have a lower loan balance on that property.

Maybe someone can come up with a name for the revolution…..

Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLS

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