So Many Homes, So Few Buyers

Courtesy of the Realty Times:


So Many Homes, So Few Buyers

A somewhat philosophical look at the market from Broderick Perkins, founder and editor of the The DeadlineNews Group.

REAL ESTATE OUTLOOK

Again, good news, tempered with not so good news, from Realty Times:


Real Estate Outlook: Spring Market Warm, but Consumer Confidence Low

We are probably all so concerned with the state of the economy, not without basis I realize, that we may be in "overshoot" mode - our confidence (or lack of) could become a self-fulfilling prophecy. I haven't missed any meals, I don't have to line up for food or gas, and while I do see a few folks around me that are having a rough time, we have all had our bumps on the way through life. Darn shame the media can't point up a little good news now and then.

My prayers go out to those having the rough times right now. I hope it will be short lived.

WOW - A TOUGH VIEW OF MORTGAGE HELP!

From Realty Times, one man's view of the Bush "Plan" for helping homeowners facing serious mortgage problems.

The Bush Foreclosure Plan: Who Really Benefits?

Let's hope the view of the writer is a bit overstated. Time will tell.

The bottom line, irrespective of the article, contact your lender early to try to work out a solution. Lenders will have a hard time getting money for new loans if they carry too much "bad" paper, so there is some motivation on them to convert your loan to a "good" loan.

MORTGAGE RATE UPDATE?

In case you wondered how investors influence mortgage rates, here is a clue from Realty Times:

Hot Debates on Subprimes and Foreclosures

I guess if you're going to buy a home any time soon, you would hope the stock market doesn't perform well!

CONGRESS WRESTLES WITH MORTGAGE HELP

Latest word from Washinton via Realty Times:

Hot Debates on Subprimes and Foreclosures

Meanwhile, folks under the gun are wondering where they will be spending Christmas, with the greatest emphasis on "spending" - Congress has not been known to act too quickly, particulary in the Holiday Season. Come on guys, get with it!

HOME PRICES DOWN IN JUNE - SO?

An August 29 Realty Times article by Blanche Evans. Blanche Evans is the award-winning editor of Realty Times, the Internet's largest independent real estate news service, where she oversees the nation's leading real estate writers and columnists. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, recognized as one of nine "Notables," and was named "Top Reporter Covering the NAR."

The title "Panic Working Like A Charm; Home Prices Mostly Down In June" doesn't due justice to the detail of Blanches article. Please take the time to read.

http://realtytimes.com/rtapages/20070829_paniccharm.htm

And a safe and pleasant Labor Day Weekend to you all.

HOW BOUT THOSE LOAN COMPANIES?

This is not a healthy indication of where the loan industry is headed:

"FIRST MAGNUS HALTS LOANS

By Jack Gillum, Christie Smythe and David Wichner
ARIZONA DAILY STAR
Tucson, Arizona Published: 08.16.2007


First Magnus Financial Corp., a mortgage lender that is one of Tucson's only locally based national firms and one of the area's major employers, is no longer writing loans as of this morning.

An e-mail Wednesday evening told branch managers of Great Southwest Mortgage, the retail arm of First Magnus, that the parent company was no longer funding loans. First Magnus is reporting 800 full-time-equivalent local employees.

"We will not be funding loans tomorrow," wrote Erik Lutz, the president and founder of Great Southwest. "

Many of the smaller lenders will be hit hard. Even Countrywide is struggling but given its size will likely come through the mess.

One prediction to consider: Are we about to return to the days when Sellers carried a note on the sale of their homes. It would help the entry level buyers now that the sub-prime market is either going away or tightening up to tight for most buyers. Time will tell - how bad do the Sellers want to sell?

FHA MORTGAGES UP IN 2007

The FHA mortgages of years past seemed out of date with all the new, clever, zero-down, ARM, and Interest Only products. Now a renewed vigor has entered the marketplace as folks shy away from many of the sparkly new approachs after watching the sub-prime lending market slowly disolve into non-existence.

Here is an article that highlights the features and requirements to use FHA to purchase your home.

FHA Mortgages Up

To use this 30 year, fixed rate option, you do need to have good credit and 3% down, but you do get protected against the very things that are causing your neighbors to abandon their dream homes.

Check both FHA and non-FHA loans to see which will best fit your particular needs.

MORTGAGE BROKERS

A bonus for today - Mortgage brokers do it cheaper and better! This article points out that Brokers are working longer hours and doing a lot more work - guess they want your business?

MORTGAGE BROKERS

I must agree, after 15 years in real estate, I would choose brokers first, direct lenders (Chase, Countrywide, etc.) second, local banks third, and internet lenders last!