San Diego Home Short Sale Bailout
San Diego home short sale payoff Bailout Program
San Diego home short sale
What would you say if I told you there was a big bank program helping San Diego homeowners who are facing foreclosure? I’m sure the answer would be: “What is it, another new program?” What if I told you this short sale incentive program to help troubled homeowners is being carried out nationwide, but the qualifications as well as the amount of help are being kept secret! Read more 
San Diego Homeowners Are Refinancing Into Shorter-Term Loans
San Diego homes
More San Diego homeowners are refinancing into shorter-term loans, saving a bundle by taking advantage of the lowest rates in decades.
Nearly a third of borrowers refinancing fixed 30-year loans in April through June picked loans with 15- or 20-year terms, according to housing finance giant Freddie Mac. It was the highest share since 2004.
The trend has been driven by near-weekly drops in rates all summer. Average rates on fixed 15-year loans fell below 4% for the first time in mid-August, dropping to 3.92%, according to Freddie Mac. A year ago, the average 15-year rate was 4.68%.
Meanwhile, the rates on fixed 30-year loans now averaged 4.44% in mid-August, Freddie Mac found. At today’s rates, a borrower with a 30-year loan at a 6.5% rate and a $200,000 principal balance could save some $70,000 in interest over the life of a shorter 20-year loan.
Bonita real estate
San Diego Homeowners – End Up Screwed
San Diego home foreclosures
Under-water San Diego homeowners are left with two not-very-appealing choices: stop making payments, take a major credit hit and risk the lender seeking a court judgment for the balance of the loan — or keep paying and hope the house begins to appreciate, however little, again.
There are many government programs to help homeowners in trouble & I advise all distressed San Diego homeowners to seek out these programs. However, from the recent reports on the performance of these good intentioned programs … so far they have been dismal failures!
Perhaps the government needs to understand that there is nothing wrong with renting! Some of the many under-water homeowners were simply not suited to own a home!
What of the San Diego homeowners who are not under–water on their mortgages? What benefit is there for homeowners that were resourceful, hardworking and buying only what they could afford when they could afford it?
The majority are offended that they — and their children and their grandchildren — will be paying for someone else’s mortgage woes through higher taxes.
California home foreclosures
Trapped San Diego Homeowners
Bob Schwartz, San Diego California Realtor
Seems that all attention is paid to people who can’t afford to buy a home, even at the current depressed prices.
What about the large number of current San Diego homeowners with great credit, with the ability to comfortably meet a mortgage payment two or three times the one they are now paying? There are thousands, maybe millions, of homeowners who have outgrown their current homes, either physically or socially. They are held back by the drop in value of their present home. They have so much negative equity that they just can’t scrape together the huge pile of cash they would need to make a move. They sit quietly out of the market, making their monthly payments. They are the potential stimulus the economy needs to tap.
San Diego Homeowners Frozen Out Of The Housing Market
Bob Schwartz, brokerforyou.com
“If a potential buyer believes that housing prices may fall more, then mortgage rates of 3-5 percent won’t attract home buyers. Rates could even drop to zero and it might not outweigh consumers’ negative perceptions”
Or, more likely, consumers still couldn’t act on such low rates if they can’t sell their existing homes. This is is the fact the interest rate geeks don’t seem to get; rates alone don’t govern consumer behavior, some homeowners are frozen out of the market by circumstances…
Homeowners Who Don’t Pay Mortgages Create A Substantial Boost To Consumer Spending
California home mortgage defaults
It appears the economy has received a boost from practices that let some homeowners stop paying their mortgages and use the ‘extra’ money elsewhere.
Almost everyone is aware of, or knows, someone living rent-free in their home for an extended period of time, having stopped paying their mortgage. Many of these free boarders are spending lavishly on non-essentials. Read more
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.
Los Angeles divorce lawyer
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.
San Bernardino estate lawyers
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 Home Values Drop 24.8%
Real Estate Market Problems Solved
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
Recent Related Posts:
New Tax Credit for First-Time Homebuyers
Obama’s Mortgage Bailout – Many Disagree!
Obama’s $275 Billion Housing Recovery Plan