Homeowners Best Credit Idea
home equidy line of credit
If you are San Diego homeowner who still has some decent equity, if you need cash, a home equity line of credit (HELOC) may be your best bet! The graph above gives you an idea of the current approximate interest rates charged on five popular loans. Like any loan, don’t borrow more that you really need.
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San Diego Ghost Equity – Homeowners Reality
San Diego homes for sale
San Diego real estate: Why are many homeowners not selling? In my opinion, it’s because of ‘ghost equity!’ In 2005 their home may have sold for $700,000, but today the real market value could be $500,000. This lost $200,000 ‘ghost equity’ is something a number of homeowners cannot accept.
The San Diego homeowners do not want to face reality and accept a huge hit to their perceived equity. Even if they have positive equity in today’s market place, mentally they are resigned to staying put until their ‘ghost equity’ re-appears!
What some of the delusional homeowners may not realize is that unless their mind-set changes,and they give up the ghost, they may be living in their current home for many more years than originally expected.
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San Diego Real Estate – The Truth
The truth about the San Diego reaol estate market:
TRUTH – Many people assumed San Diego real estate values could never go down.
TRUTH – Many let people greed replace common sence.
TRUTH – Many San Diego homeowners used their home's equity to live beyond their means.
TRUTH – Our Government cannot correct the poor decisions made by all homeowners!
TRUTH – Many people entered into home mortgage loans that they simply could not afford.
TRUTH – Many lenders created an atmosphere and a loan package that tempted too many people into a false sense of ability to pay.
At the end of the day, the thruth is that if someone cannot afford the mortgage (and insurance, HOA fees, and property taxes) they, sadly, must give up the home. The truth is the truth. 60 years of living through life's challenges taught me that lesson. Be responsible for your decisions and the healing can begin. Use whatever assistance comes now to face reality and if you cannot afford your home then leave it and start over. Your family and your country will respect you more and you will respect yourself as well. Reality decisions are never easy but always necessary. San Diego real estate agents
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San Diego Real Estate – No Relief From Obama
San Diego troubled homeowners will not see a great deal of assistance from the Obama housing bailout according to the available details at this time. Things may change, of course, by the scheduled March 4th release of the full details on this plan. As it stands now, here are the main reasons this plan will not help many San Diego homeowners:
A. The maximum difference in the mortgage amount and the home's vale is 5%. The average loss in San Diego home values just last year was well into double digits. Even with an original down payment of 20%, one’s mortgage could easily be much greater than the 5% cap.
B. The maximum original loan could not exceed $417,000. While a $417,000 mortgage loan can only be for a luxury home in most parts of the United States, which would not necessarily the case in San Diego.
C. The assistance only applies when one loan was originated. Many San Diego homeowners purchased with a combination of a first and second loans.
D. Option ARM loans are not included.
E. If you have a second (or equity) loan on your property, you are not included.
Every single person who enters into a mortgage should be responsible enough to consider the down side and be honest about their long-range job prospects.
I was calling it a housing bubble in 2003 and research shows that was not a bizarre or un-shared opinion. The idea that the bust was a big surprise is just a modern fable used by people who don't want to take responsibility for their financial misdeeds. The nanny-state solution we are now stuck with is the worst possible approach.
I take comfort from two things:
1) It is a government administered program and will most likely fail to perform. The fact is that the government has a history of messing stuff like this up. It seems likely that the program will be bogged down by bureaucracy and ineptitude. I will not be surprised by news stories about people still losing their homes because they are unable to navigate through the maze of requirements and regulations.
2) It is not as bad as it could have been. Since absolute power corrupts absolutely we could have seen much worse. Much as I dislike the administration’s politics, I find some comfort that the program is limited to primary residences.
Overall, this program is a severe blow to the good people who did the right thing. The government is robbing us to buy votes from the those dishonest individuals who saw a way to game the system, and did it, knowing full well that they were taking unconscionable risks. San Diego Realtor
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San Diego Homeowners with Underwater Loans
People might have got into these loans without thinking too hard but I guarantee you that they won't leave as foolishly. You don't need to be Robert Shiller to understand that your housing equity is not coming back any time soon and that rents are becoming ever more affordable.
Besides… who needs a credit score in the next 4 years anyway? Many people approaching 800 on their FICO are still being denied new credit card offers and have no desire to purchase any real estate until the dust settles.
Many strongly believe that underwater homeowners should walk away en masse unless their true desire is to stay put for the next 15 to 20 years. Rip the band-aid off!!! San Diego Realtor
Cities Where Home Owners Spend Over 50% of Their Income on Housing
According to 2007 data released by the U.S. Census Bureau, almost 15 percent of American home owners with a mortgage spend half of their income or more on housing costs.
Below are the top 13 areas where mortgage holders spend 50 percent or more of their income on their homes. The information is an estimate based on an analysis of Census data by Harvard University’s Joint Center for Housing Studies.
- Miami-Fort Lauderdale-Miami Beach, 58 percent
- Stockton, Calif.,57 percent
- Riverside-San Bernardino-Ontario, Calif., 55 percent
- Cape Coral-Fort Myers, Fla., 55 percent
- Los Angeles-Long Beach-Santa Ana, Calif., 54 percent
- Modesto, Calif., 54 percent
- San Diego-Carlsbad-San Marcos, Calif., 53 percent
- San Francisco-Oakland-Fremont, Calif., 53 percent
- Sarasota-Bradenton-Venice, Fla., 52 percent
- Oxnard-Thousand Oaks-Ventura, Calif., 52 percent
- San Jose-Sunnyvale-Santa Clara, Calif., 51 percent
- Las Vegas-Paradise, Nev., 51 percent
- Sacramento-Arden-Arcade-Roseville, Calif., 50 percent San Diego California home sales