the next big step down is coming to mid/high-end areas near you

[Nor-LA-SD-guy]

[quote=patientrenter][quote=Nor-LA-SD-guy]
The way the loan mod’s requirements are written, they will help very few in Socal, maybe if you lived in Virginia or Iowa or someplace else.[/quote]

Why?[/quote]

Wow sorry I think this will help Socal home owners,

Somehow I read the first time that Owners would be required to be within 105 % of homes value, but that not in there when I re-read it.

[jpinpb]

Okay. Am I reading that right?

“Servicers can also reduce the loan balance to achieve these affordability levels.”

Also, what’s the cost to foreclose?

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify”

Oh, as if modifying it isn’t enough.

“Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.”

I just want to puke.

[jpinpb]

Okay. Am I reading that right?

“Servicers can also reduce the loan balance to achieve these affordability levels.”

Also, what’s the cost to foreclose?

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify”

Oh, as if modifying it isn’t enough.

“Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.”

I just want to puke.

[jpinpb]

Okay. Am I reading that right?

“Servicers can also reduce the loan balance to achieve these affordability levels.”

Also, what’s the cost to foreclose?

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify”

Oh, as if modifying it isn’t enough.

“Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.”

I just want to puke.

[jpinpb]

Okay. Am I reading that right?

“Servicers can also reduce the loan balance to achieve these affordability levels.”

Also, what’s the cost to foreclose?

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify”

Oh, as if modifying it isn’t enough.

“Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.”

I just want to puke.

[jpinpb]

Okay. Am I reading that right?

“Servicers can also reduce the loan balance to achieve these affordability levels.”

Also, what’s the cost to foreclose?

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify”

Oh, as if modifying it isn’t enough.

“Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.”

I just want to puke.

[Coronita]

Heh.

jpinpb and nor-cal guy,

I’m sorry, I’m not trying to be negative here or spoil the thought of a significant drop in home prices in the short term future. It might…But it seems at least in the short term, the gov is basically throwing the book at preventing home prices from sharply falling (whether it will be effective or not is tbd)…But I see two scenarios

1)Government is successful. Financially irresponsible people are rewarded and folks like you folks and me get screwed.

2)Government isn’t successful. Then entire deck of cards falls, in which case everyone is screwed…including folks like you and me.

It’s your favorite game show… “You can’t win, You’re screwed”….
-(. It’s hurts from laughing at this absurdity…..

Just wait till we have runaway inflation. At that point “saving” will be moot.

My excuse, i keep telling myself, is that i didn’t vote for this administration…. 🙂 So I’m just burying my head in the sand , hoping the next congressional election will balance things again….

Government is probably going to try to string out the decline. Basically, for now, bail out some homeowners..Overtime, they’ll be in the same mess.

Also, let’s not underestimate the effects of conforming loan limits going up to $697k in the near future…We see inventory moving in the $700k below range. If we move the conforming limit to $697k, that just might bring out some sideline buyers who otherwise would have been priced out.
I think this newer limit would allow someone to purchase $850k (give or take) with 20% down…And if that’s at a 4.25-4.5% 30 year loan, I have a hunch we got game. (million dollar homes are still screwed me thinks…at least until the fed raises conforming rates to 800k+ in SD….Heh, laugh now at this absurd suggestion…But if there’s anything consistent about this administration, it’s that they are consistent in doing some of the unthinkable). The next thought will be “who has 150k-200k sitting on the side” who can afford this…. but you know there are.

The last thing is “who would be crazy enough to buy in this market when home prices are going to continue to fall”. Well, simple. Some people don’t purchase primary homes with economic rationalization….motivations might be symbolic, stability, symbolic or just plain making sure you can get laid at night..sorry to be crude)..

All i can say, is it will definitely get interesting to see how things pan out.

[Coronita]

Heh.

jpinpb and nor-cal guy,

I’m sorry, I’m not trying to be negative here or spoil the thought of a significant drop in home prices in the short term future. It might…But it seems at least in the short term, the gov is basically throwing the book at preventing home prices from sharply falling (whether it will be effective or not is tbd)…But I see two scenarios

1)Government is successful. Financially irresponsible people are rewarded and folks like you folks and me get screwed.

2)Government isn’t successful. Then entire deck of cards falls, in which case everyone is screwed…including folks like you and me.

It’s your favorite game show… “You can’t win, You’re screwed”….
-(. It’s hurts from laughing at this absurdity…..

Just wait till we have runaway inflation. At that point “saving” will be moot.

My excuse, i keep telling myself, is that i didn’t vote for this administration…. 🙂 So I’m just burying my head in the sand , hoping the next congressional election will balance things again….

Government is probably going to try to string out the decline. Basically, for now, bail out some homeowners..Overtime, they’ll be in the same mess.

Also, let’s not underestimate the effects of conforming loan limits going up to $697k in the near future…We see inventory moving in the $700k below range. If we move the conforming limit to $697k, that just might bring out some sideline buyers who otherwise would have been priced out.
I think this newer limit would allow someone to purchase $850k (give or take) with 20% down…And if that’s at a 4.25-4.5% 30 year loan, I have a hunch we got game. (million dollar homes are still screwed me thinks…at least until the fed raises conforming rates to 800k+ in SD….Heh, laugh now at this absurd suggestion…But if there’s anything consistent about this administration, it’s that they are consistent in doing some of the unthinkable). The next thought will be “who has 150k-200k sitting on the side” who can afford this…. but you know there are.

The last thing is “who would be crazy enough to buy in this market when home prices are going to continue to fall”. Well, simple. Some people don’t purchase primary homes with economic rationalization….motivations might be symbolic, stability, symbolic or just plain making sure you can get laid at night..sorry to be crude)..

All i can say, is it will definitely get interesting to see how things pan out.

[Coronita]

Heh.

jpinpb and nor-cal guy,

I’m sorry, I’m not trying to be negative here or spoil the thought of a significant drop in home prices in the short term future. It might…But it seems at least in the short term, the gov is basically throwing the book at preventing home prices from sharply falling (whether it will be effective or not is tbd)…But I see two scenarios

1)Government is successful. Financially irresponsible people are rewarded and folks like you folks and me get screwed.

2)Government isn’t successful. Then entire deck of cards falls, in which case everyone is screwed…including folks like you and me.

It’s your favorite game show… “You can’t win, You’re screwed”….
-(. It’s hurts from laughing at this absurdity…..

Just wait till we have runaway inflation. At that point “saving” will be moot.

My excuse, i keep telling myself, is that i didn’t vote for this administration…. 🙂 So I’m just burying my head in the sand , hoping the next congressional election will balance things again….

Government is probably going to try to string out the decline. Basically, for now, bail out some homeowners..Overtime, they’ll be in the same mess.

Also, let’s not underestimate the effects of conforming loan limits going up to $697k in the near future…We see inventory moving in the $700k below range. If we move the conforming limit to $697k, that just might bring out some sideline buyers who otherwise would have been priced out.
I think this newer limit would allow someone to purchase $850k (give or take) with 20% down…And if that’s at a 4.25-4.5% 30 year loan, I have a hunch we got game. (million dollar homes are still screwed me thinks…at least until the fed raises conforming rates to 800k+ in SD….Heh, laugh now at this absurd suggestion…But if there’s anything consistent about this administration, it’s that they are consistent in doing some of the unthinkable). The next thought will be “who has 150k-200k sitting on the side” who can afford this…. but you know there are.

The last thing is “who would be crazy enough to buy in this market when home prices are going to continue to fall”. Well, simple. Some people don’t purchase primary homes with economic rationalization….motivations might be symbolic, stability, symbolic or just plain making sure you can get laid at night..sorry to be crude)..

All i can say, is it will definitely get interesting to see how things pan out.

[Coronita]

Heh.

jpinpb and nor-cal guy,

I’m sorry, I’m not trying to be negative here or spoil the thought of a significant drop in home prices in the short term future. It might…But it seems at least in the short term, the gov is basically throwing the book at preventing home prices from sharply falling (whether it will be effective or not is tbd)…But I see two scenarios

1)Government is successful. Financially irresponsible people are rewarded and folks like you folks and me get screwed.

2)Government isn’t successful. Then entire deck of cards falls, in which case everyone is screwed…including folks like you and me.

It’s your favorite game show… “You can’t win, You’re screwed”….
-(. It’s hurts from laughing at this absurdity…..

Just wait till we have runaway inflation. At that point “saving” will be moot.

My excuse, i keep telling myself, is that i didn’t vote for this administration…. 🙂 So I’m just burying my head in the sand , hoping the next congressional election will balance things again….

Government is probably going to try to string out the decline. Basically, for now, bail out some homeowners..Overtime, they’ll be in the same mess.

Also, let’s not underestimate the effects of conforming loan limits going up to $697k in the near future…We see inventory moving in the $700k below range. If we move the conforming limit to $697k, that just might bring out some sideline buyers who otherwise would have been priced out.
I think this newer limit would allow someone to purchase $850k (give or take) with 20% down…And if that’s at a 4.25-4.5% 30 year loan, I have a hunch we got game. (million dollar homes are still screwed me thinks…at least until the fed raises conforming rates to 800k+ in SD….Heh, laugh now at this absurd suggestion…But if there’s anything consistent about this administration, it’s that they are consistent in doing some of the unthinkable). The next thought will be “who has 150k-200k sitting on the side” who can afford this…. but you know there are.

The last thing is “who would be crazy enough to buy in this market when home prices are going to continue to fall”. Well, simple. Some people don’t purchase primary homes with economic rationalization….motivations might be symbolic, stability, symbolic or just plain making sure you can get laid at night..sorry to be crude)..

All i can say, is it will definitely get interesting to see how things pan out.

[Coronita]

Heh.

jpinpb and nor-cal guy,

I’m sorry, I’m not trying to be negative here or spoil the thought of a significant drop in home prices in the short term future. It might…But it seems at least in the short term, the gov is basically throwing the book at preventing home prices from sharply falling (whether it will be effective or not is tbd)…But I see two scenarios

1)Government is successful. Financially irresponsible people are rewarded and folks like you folks and me get screwed.

2)Government isn’t successful. Then entire deck of cards falls, in which case everyone is screwed…including folks like you and me.

It’s your favorite game show… “You can’t win, You’re screwed”….
-(. It’s hurts from laughing at this absurdity…..

Just wait till we have runaway inflation. At that point “saving” will be moot.

My excuse, i keep telling myself, is that i didn’t vote for this administration…. 🙂 So I’m just burying my head in the sand , hoping the next congressional election will balance things again….

Government is probably going to try to string out the decline. Basically, for now, bail out some homeowners..Overtime, they’ll be in the same mess.

Also, let’s not underestimate the effects of conforming loan limits going up to $697k in the near future…We see inventory moving in the $700k below range. If we move the conforming limit to $697k, that just might bring out some sideline buyers who otherwise would have been priced out.
I think this newer limit would allow someone to purchase $850k (give or take) with 20% down…And if that’s at a 4.25-4.5% 30 year loan, I have a hunch we got game. (million dollar homes are still screwed me thinks…at least until the fed raises conforming rates to 800k+ in SD….Heh, laugh now at this absurd suggestion…But if there’s anything consistent about this administration, it’s that they are consistent in doing some of the unthinkable). The next thought will be “who has 150k-200k sitting on the side” who can afford this…. but you know there are.

The last thing is “who would be crazy enough to buy in this market when home prices are going to continue to fall”. Well, simple. Some people don’t purchase primary homes with economic rationalization….motivations might be symbolic, stability, symbolic or just plain making sure you can get laid at night..sorry to be crude)..

All i can say, is it will definitely get interesting to see how things pan out.

[Coronita]

Also, from that article….

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.”

That pretty much sums up almost all underwater homes in CA doesn’t it?

Maybe the reason why banks haven’t massively started foreclosing yet, is they are waiting for this bailout plan. After all, if they foreclose, they know that’s a lot of money lost. With these government bailout plan, at the least the government is going to partially subsidize the modification.

“The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.”

Oh boy…

[Coronita]

Also, from that article….

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.”

That pretty much sums up almost all underwater homes in CA doesn’t it?

Maybe the reason why banks haven’t massively started foreclosing yet, is they are waiting for this bailout plan. After all, if they foreclose, they know that’s a lot of money lost. With these government bailout plan, at the least the government is going to partially subsidize the modification.

“The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.”

Oh boy…

[Coronita]

Also, from that article….

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.”

That pretty much sums up almost all underwater homes in CA doesn’t it?

Maybe the reason why banks haven’t massively started foreclosing yet, is they are waiting for this bailout plan. After all, if they foreclose, they know that’s a lot of money lost. With these government bailout plan, at the least the government is going to partially subsidize the modification.

“The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.”

Oh boy…

[Coronita]

Also, from that article….

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.”

That pretty much sums up almost all underwater homes in CA doesn’t it?

Maybe the reason why banks haven’t massively started foreclosing yet, is they are waiting for this bailout plan. After all, if they foreclose, they know that’s a lot of money lost. With these government bailout plan, at the least the government is going to partially subsidize the modification.

“The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.”

Oh boy…

[Author]

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