[Ozzie]

I didn’t ask him for a W-2 and a list of his debts, but I assume he makes a bit over $100k and I’m sure his FICO is 700+. This is in the SF Bay Area and his reason for moving was a bigger home as they were in a home a little over 1,000 sq feet (with 2 small kids) which I think they sold for over $700k. If you think prices are high here you should see what $700k buys you in Marin County, SF, or the San Jose area.

My point is that lenders have gone from overly lax to overly harsh in a matter of weeks. Of course he should qualify. Any lender in their right mind is going to lend to someone who is making that kind of down payment even if it’s 60% of his take home pay. No way is he going to walk from that kind of down payment and if he does there’s more than enough equity to withstand a horrific housing correction.

[Ozzie]

The Fed is not worried about the stock market. A rate cut will come because they are worried about an economic slowdown leding to a recession. Also, the credit crunch is in no way over. The mortgage market is still a mess. Especially in California where non-conforming loans are viewed by investors and lenders as poisonous.

If lenders like CFC were smart they would set up their own RE brokerage business (or partner with an existing one because I think NAR has successfully lobbied against allowing banks to become RE brokers) and hold onto 90% of the homes they foreclose on and use them as rentals or lease options. There are going to be 1000’s of sellers (I’m not talking about the guys who got foreclosed on) who are currently selling their homes and think they can qualify for a loan but they can’t in this environment. So where do they go? They are going to have to rent. I have a relative in this exact situation who has $400k in the bank after selling his home. He was going to rent for 6 months until he found the house they wanted to live in for the next 20 years, but now he can’t qualify for the 900k house he was going to buy. So he and his family are renters. That scenario is going to be replayed over and over unless the limits on conforming loans are raised significantly. The credit crunch is still in full force in the mortgage industry.

[Ozzie]

The Fed is not worried about the stock market. A rate cut will come because they are worried about an economic slowdown leding to a recession. Also, the credit crunch is in no way over. The mortgage market is still a mess. Especially in California where non-conforming loans are viewed by investors and lenders as poisonous.

If lenders like CFC were smart they would set up their own RE brokerage business (or partner with an existing one because I think NAR has successfully lobbied against allowing banks to become RE brokers) and hold onto 90% of the homes they foreclose on and use them as rentals or lease options. There are going to be 1000’s of sellers (I’m not talking about the guys who got foreclosed on) who are currently selling their homes and think they can qualify for a loan but they can’t in this environment. So where do they go? They are going to have to rent. I have a relative in this exact situation who has $400k in the bank after selling his home. He was going to rent for 6 months until he found the house they wanted to live in for the next 20 years, but now he can’t qualify for the 900k house he was going to buy. So he and his family are renters. That scenario is going to be replayed over and over unless the limits on conforming loans are raised significantly. The credit crunch is still in full force in the mortgage industry.

[Ozzie]

The Fed is not worried about the stock market. A rate cut will come because they are worried about an economic slowdown leding to a recession. Also, the credit crunch is in no way over. The mortgage market is still a mess. Especially in California where non-conforming loans are viewed by investors and lenders as poisonous.

If lenders like CFC were smart they would set up their own RE brokerage business (or partner with an existing one because I think NAR has successfully lobbied against allowing banks to become RE brokers) and hold onto 90% of the homes they foreclose on and use them as rentals or lease options. There are going to be 1000’s of sellers (I’m not talking about the guys who got foreclosed on) who are currently selling their homes and think they can qualify for a loan but they can’t in this environment. So where do they go? They are going to have to rent. I have a relative in this exact situation who has $400k in the bank after selling his home. He was going to rent for 6 months until he found the house they wanted to live in for the next 20 years, but now he can’t qualify for the 900k house he was going to buy. So he and his family are renters. That scenario is going to be replayed over and over unless the limits on conforming loans are raised significantly. The credit crunch is still in full force in the mortgage industry.

[Ozzie]

Yes, that was Anne Rice’s place. There was an article in the UT when she bought the place a few years ago. 11,000 sq feet seems kind of large for one person doesn’t it?

You’d be surprised how many celebrities lose big money on real esate even during boom times. I believe Scottie Pippen from the NBA took a huge loss recently in Portland and that area is stil doing well and he had it for 4 or 5 years. The LA Times has a celebrity writeup every Sunday of their RE section and they usually list what they bought and sold for. Courtney Cox from Friends fame buys houses, renovates and flips for huge profits. She seems to know what she’s doing. I’m still wondering how David Arquette snagged her.

[Ozzie]

Yes, that was Anne Rice’s place. There was an article in the UT when she bought the place a few years ago. 11,000 sq feet seems kind of large for one person doesn’t it?

You’d be surprised how many celebrities lose big money on real esate even during boom times. I believe Scottie Pippen from the NBA took a huge loss recently in Portland and that area is stil doing well and he had it for 4 or 5 years. The LA Times has a celebrity writeup every Sunday of their RE section and they usually list what they bought and sold for. Courtney Cox from Friends fame buys houses, renovates and flips for huge profits. She seems to know what she’s doing. I’m still wondering how David Arquette snagged her.

[Ozzie]

Yes, that was Anne Rice’s place. There was an article in the UT when she bought the place a few years ago. 11,000 sq feet seems kind of large for one person doesn’t it?

You’d be surprised how many celebrities lose big money on real esate even during boom times. I believe Scottie Pippen from the NBA took a huge loss recently in Portland and that area is stil doing well and he had it for 4 or 5 years. The LA Times has a celebrity writeup every Sunday of their RE section and they usually list what they bought and sold for. Courtney Cox from Friends fame buys houses, renovates and flips for huge profits. She seems to know what she’s doing. I’m still wondering how David Arquette snagged her.

[Ozzie]

That interview was his attempt to influence both a Fed funds rate cut and a lifting of the bar for conforming loans. Both of which will probably happen and will help CFC.

B of A probably made themselves a great deal. I’m sure their $2B will be worth $4-6B after they convert their shares in 12-18 months.

[Ozzie]

That interview was his attempt to influence both a Fed funds rate cut and a lifting of the bar for conforming loans. Both of which will probably happen and will help CFC.

B of A probably made themselves a great deal. I’m sure their $2B will be worth $4-6B after they convert their shares in 12-18 months.

[Ozzie]

That interview was his attempt to influence both a Fed funds rate cut and a lifting of the bar for conforming loans. Both of which will probably happen and will help CFC.

B of A probably made themselves a great deal. I’m sure their $2B will be worth $4-6B after they convert their shares in 12-18 months.

[Ozzie]

Edwards claimed he would divest all his funds from the hedge fund that invested in subprime loans and personally help out those who are getting foreclosed which makes no sense. He’s the one taking a hit on those loans and now he’s going to bail out the people who already stiffed him?

Hmmm, that’s a guy I’d like leading our country.

[Ozzie]

Edwards claimed he would divest all his funds from the hedge fund that invested in subprime loans and personally help out those who are getting foreclosed which makes no sense. He’s the one taking a hit on those loans and now he’s going to bail out the people who already stiffed him?

Hmmm, that’s a guy I’d like leading our country.

[Ozzie]

Edwards claimed he would divest all his funds from the hedge fund that invested in subprime loans and personally help out those who are getting foreclosed which makes no sense. He’s the one taking a hit on those loans and now he’s going to bail out the people who already stiffed him?

Hmmm, that’s a guy I’d like leading our country.

[Ozzie]

Mortgages will become simply unavailable

If that’s the case then the Sen. is right in asking for the limits for Fannie and Freddie to be raised. Their charter is to provide liquidity to the mortgage market. No wonder FNM is up about 20% in the last two weeks. Looks like traders have priced it in.

[Ozzie]

Mortgages will become simply unavailable

If that’s the case then the Sen. is right in asking for the limits for Fannie and Freddie to be raised. Their charter is to provide liquidity to the mortgage market. No wonder FNM is up about 20% in the last two weeks. Looks like traders have priced it in.

[Author]

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