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carlsbadworker
Participant[quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
Participant[quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
Participant[quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
Participant[quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
Participant[quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
Participant[quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
Participant[quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
Participant[quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
Participant[quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
Participant[quote=Scarlet]Good point Carlsbadworker, I had not factored that in. Yes EVERYTHING costs more today and our wages have stagnated for decades.
[/quote]Just want to clarify one more thing. “Our wages have stagnated for decades”, really? The inflation adjusted wage has stagnated for the last decade, but the nominal wage has risen 25% since the the real estate bubble starts. Besides, the interest rate dropped from 7-8% at that time to below 5%. That almost equals to 15% price drops by itself.
My point is not that Temecula real estate price may not continue to drop and everyone should buy right now. My point is that if you look at the fundamental, the current price is definitely justified in town like Temecula. Either by looking at things historically, or by making buy v.s. rent trade (my PITI is almost three hundred dollar less than the rents of a similar house, even though the rent has dropped over $300 recently as well). Well, to CA renter’s point, I lowered my fixed monthly cost to buy v.s. rent, not to mention the additional tax benefits.
Would the price continue to drop? I think it is likely given the hidden inventory that you mentioned and the prospect of the depression. But then you are arguing about when is the best time to buy to capture the last bit of price drop v.s. whether the current price is fundamentally sound.
I choose to buy because it fits my personal circumstance and I would rather not wait for the last bit of price drop. Your situation may vary. But if you are just fundamentally hate Temecula to flame against buying there, I think there is no point of argue further.Participant[quote=Scarlet]Good point Carlsbadworker, I had not factored that in. Yes EVERYTHING costs more today and our wages have stagnated for decades.
[/quote]Just want to clarify one more thing. “Our wages have stagnated for decades”, really? The inflation adjusted wage has stagnated for the last decade, but the nominal wage has risen 25% since the the real estate bubble starts. Besides, the interest rate dropped from 7-8% at that time to below 5%. That almost equals to 15% price drops by itself.
My point is not that Temecula real estate price may not continue to drop and everyone should buy right now. My point is that if you look at the fundamental, the current price is definitely justified in town like Temecula. Either by looking at things historically, or by making buy v.s. rent trade (my PITI is almost three hundred dollar less than the rents of a similar house, even though the rent has dropped over $300 recently as well). Well, to CA renter’s point, I lowered my fixed monthly cost to buy v.s. rent, not to mention the additional tax benefits.
Would the price continue to drop? I think it is likely given the hidden inventory that you mentioned and the prospect of the depression. But then you are arguing about when is the best time to buy to capture the last bit of price drop v.s. whether the current price is fundamentally sound.
I choose to buy because it fits my personal circumstance and I would rather not wait for the last bit of price drop. Your situation may vary. But if you are just fundamentally hate Temecula to flame against buying there, I think there is no point of argue further.Participant[quote=Scarlet]Good point Carlsbadworker, I had not factored that in. Yes EVERYTHING costs more today and our wages have stagnated for decades.
[/quote]Just want to clarify one more thing. “Our wages have stagnated for decades”, really? The inflation adjusted wage has stagnated for the last decade, but the nominal wage has risen 25% since the the real estate bubble starts. Besides, the interest rate dropped from 7-8% at that time to below 5%. That almost equals to 15% price drops by itself.
My point is not that Temecula real estate price may not continue to drop and everyone should buy right now. My point is that if you look at the fundamental, the current price is definitely justified in town like Temecula. Either by looking at things historically, or by making buy v.s. rent trade (my PITI is almost three hundred dollar less than the rents of a similar house, even though the rent has dropped over $300 recently as well). Well, to CA renter’s point, I lowered my fixed monthly cost to buy v.s. rent, not to mention the additional tax benefits.
Would the price continue to drop? I think it is likely given the hidden inventory that you mentioned and the prospect of the depression. But then you are arguing about when is the best time to buy to capture the last bit of price drop v.s. whether the current price is fundamentally sound.
I choose to buy because it fits my personal circumstance and I would rather not wait for the last bit of price drop. Your situation may vary. But if you are just fundamentally hate Temecula to flame against buying there, I think there is no point of argue further.Participant[quote=Scarlet]Good point Carlsbadworker, I had not factored that in. Yes EVERYTHING costs more today and our wages have stagnated for decades.
[/quote]Just want to clarify one more thing. “Our wages have stagnated for decades”, really? The inflation adjusted wage has stagnated for the last decade, but the nominal wage has risen 25% since the the real estate bubble starts. Besides, the interest rate dropped from 7-8% at that time to below 5%. That almost equals to 15% price drops by itself.
My point is not that Temecula real estate price may not continue to drop and everyone should buy right now. My point is that if you look at the fundamental, the current price is definitely justified in town like Temecula. Either by looking at things historically, or by making buy v.s. rent trade (my PITI is almost three hundred dollar less than the rents of a similar house, even though the rent has dropped over $300 recently as well). Well, to CA renter’s point, I lowered my fixed monthly cost to buy v.s. rent, not to mention the additional tax benefits.
Would the price continue to drop? I think it is likely given the hidden inventory that you mentioned and the prospect of the depression. But then you are arguing about when is the best time to buy to capture the last bit of price drop v.s. whether the current price is fundamentally sound.
I choose to buy because it fits my personal circumstance and I would rather not wait for the last bit of price drop. Your situation may vary. But if you are just fundamentally hate Temecula to flame against buying there, I think there is no point of argue further.Participant[quote=Scarlet]Good point Carlsbadworker, I had not factored that in. Yes EVERYTHING costs more today and our wages have stagnated for decades.
[/quote]Just want to clarify one more thing. “Our wages have stagnated for decades”, really? The inflation adjusted wage has stagnated for the last decade, but the nominal wage has risen 25% since the the real estate bubble starts. Besides, the interest rate dropped from 7-8% at that time to below 5%. That almost equals to 15% price drops by itself.
My point is not that Temecula real estate price may not continue to drop and everyone should buy right now. My point is that if you look at the fundamental, the current price is definitely justified in town like Temecula. Either by looking at things historically, or by making buy v.s. rent trade (my PITI is almost three hundred dollar less than the rents of a similar house, even though the rent has dropped over $300 recently as well). Well, to CA renter’s point, I lowered my fixed monthly cost to buy v.s. rent, not to mention the additional tax benefits.
Would the price continue to drop? I think it is likely given the hidden inventory that you mentioned and the prospect of the depression. But then you are arguing about when is the best time to buy to capture the last bit of price drop v.s. whether the current price is fundamentally sound.
I choose to buy because it fits my personal circumstance and I would rather not wait for the last bit of price drop. Your situation may vary. But if you are just fundamentally hate Temecula to flame against buying there, I think there is no point of argue further. -
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