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NEW -> Contingent Buyer Assistance Program
Anonymous_IHB
New member
Bank of America to Modify Mortgages, Help Homeowners (Update3)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aR0sVQUaMo4k&refer=home
http://www.bloomberg.com/apps/news?pid=20601087&sid=aR0sVQUaMo4k&refer=home
graphrix_IHB
New member
We were linked on Eschaton today, and in the 389 comments so far, there was a great one that made me do it...
http://images.icanhascheezburger.com/completestore/2008/4/28/canzcomumersha128538915497812500.jpg
http://images.icanhascheezburger.com/completestore/2008/4/28/canzcomumersha128538915497812500.jpg
graphrix_IHB
New member
<a href="http://www.nytimes.com/2008/04/28/business/28mortgage.html">Loan Industry Fighting Rules on Mortgages</a>
<em>The mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back.
As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.
To the chagrin of consumer groups that have complained that the proposed rules are not strong enough, the industry?s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans.</em>
<em>The mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back.
As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.
To the chagrin of consumer groups that have complained that the proposed rules are not strong enough, the industry?s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans.</em>
IrvineRenter_IHB
New member
[quote author="graphrix" date=1209444490]<a href="http://www.nytimes.com/2008/04/28/business/28mortgage.html">Loan Industry Fighting Rules on Mortgages</a>
<em>The mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back.
As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.
To the chagrin of consumer groups that have complained that the proposed rules are not strong enough, the industry?s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans.</em></blockquote>
Not surprising, but irritating. Wait until they see what I am proposing in my book. Their collective heads will explode...
<em>The mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back.
As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.
To the chagrin of consumer groups that have complained that the proposed rules are not strong enough, the industry?s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans.</em></blockquote>
Not surprising, but irritating. Wait until they see what I am proposing in my book. Their collective heads will explode...
JNinWB_IHB
New member
<a href="http://www.businessweek.com/ap/financialnews/D90BKK7G1.htm">CA Bill Rquires lenders to Maintain Foreclosed Homes</a>
<blockquote>Banks and mortgage companies face fines of $1,000 a day if they allow foreclosed homes to become run down and a source of neighborhood blight under a bill that passed the state Senate on Monday.
California has one of the highest foreclosure rates in the nation. Many communities, particularly in the Central Valley, are riddled with homes that have been abandoned by buyers who could not afford their mortgage payments when they reset to higher rates.
In many cases, the vacant properties are overgrown with weeds and shrubs and have become magnets for squatters and vandals. Swimming pools often become stagnant, turning into breeding grounds for mosquitoes.
Under the bill by Senate President Pro Tem Don Perata, local governments could impose the fines on lenders after giving them 14 days' notice to fix the problems.
"Senator Perata's bill not only tries to help those in danger of losing their homes, it tries to make sure property values don't go down in neighborhoods where foreclosures already are problems," Perata spokeswoman Lynda Gledhill said.
The bill, supported by consumer groups and local governments, and was sent to the Assembly on a 28-10 vote. Because it is urgency legislation, it would take effect as soon as it is signed into law.
Perata said quick action was needed because adjustable rate mortgages continue to reset to higher interest rates. He cited consumer groups' projections that as many as 400,000 California families will lose their homes in the next two years.......</blockquote>
<blockquote>Banks and mortgage companies face fines of $1,000 a day if they allow foreclosed homes to become run down and a source of neighborhood blight under a bill that passed the state Senate on Monday.
California has one of the highest foreclosure rates in the nation. Many communities, particularly in the Central Valley, are riddled with homes that have been abandoned by buyers who could not afford their mortgage payments when they reset to higher rates.
In many cases, the vacant properties are overgrown with weeds and shrubs and have become magnets for squatters and vandals. Swimming pools often become stagnant, turning into breeding grounds for mosquitoes.
Under the bill by Senate President Pro Tem Don Perata, local governments could impose the fines on lenders after giving them 14 days' notice to fix the problems.
"Senator Perata's bill not only tries to help those in danger of losing their homes, it tries to make sure property values don't go down in neighborhoods where foreclosures already are problems," Perata spokeswoman Lynda Gledhill said.
The bill, supported by consumer groups and local governments, and was sent to the Assembly on a 28-10 vote. Because it is urgency legislation, it would take effect as soon as it is signed into law.
Perata said quick action was needed because adjustable rate mortgages continue to reset to higher interest rates. He cited consumer groups' projections that as many as 400,000 California families will lose their homes in the next two years.......</blockquote>
Anonymous_IHB
New member
Closing HELOCs could bite banks, report says
http://mortgage.freedomblogging.com/2008/04/29/closing-helocs-could-bite-banks-report-says/
KBW said there?s an additional $1.2 trillion in outstanding debt on credit lines and home-equity loans. To put the numbers in perspective, the total of $2.2 trillion (used and unused HELOCs and home-equity loans) equates to 20 percent of outstanding first-mortgage debt and roughly 85 percent of outstanding non-mortgage consumer debt ($2.5 trillion), the report found.
?In our view, the importance of home equity lines as a source of household liquidity is a recent phenomenon and one which can have an outsized impact on the current economic cycle.
http://mortgage.freedomblogging.com/2008/04/29/closing-helocs-could-bite-banks-report-says/
KBW said there?s an additional $1.2 trillion in outstanding debt on credit lines and home-equity loans. To put the numbers in perspective, the total of $2.2 trillion (used and unused HELOCs and home-equity loans) equates to 20 percent of outstanding first-mortgage debt and roughly 85 percent of outstanding non-mortgage consumer debt ($2.5 trillion), the report found.
?In our view, the importance of home equity lines as a source of household liquidity is a recent phenomenon and one which can have an outsized impact on the current economic cycle.
graphrix_IHB
New member
[quote author="awgee" date=1209525596]Can you imagine how fast Countrywide is going to get rid of their REO if they have to maintain them or be fined up to $1000 per day? A few folks in here know how to look up the number of REO that Countrywide has. How many is it?</blockquote>
The Coutrywide Reo <a href="http://countrywide-foreclosures.blogspot.com/">is here</a>, and the actual REO site from <a href="http://www.countrywide.com/purchase/f_reo.asp">CW is here</a>.
14,220 REOs as of 4/17/08, they went down a little bit, but as you scroll down on the blog, you can see the increase in Cali and the decrease in price for Cali. I roughly counted 143 in OC on the CW site, with 3 being in Irvine, and a whole bunch in South County.
The Coutrywide Reo <a href="http://countrywide-foreclosures.blogspot.com/">is here</a>, and the actual REO site from <a href="http://www.countrywide.com/purchase/f_reo.asp">CW is here</a>.
14,220 REOs as of 4/17/08, they went down a little bit, but as you scroll down on the blog, you can see the increase in Cali and the decrease in price for Cali. I roughly counted 143 in OC on the CW site, with 3 being in Irvine, and a whole bunch in South County.
JNinWB_IHB
New member
Redfin has added new sort criteria to their data base: FSBO, foreclosures, closed sales.
<a href="http://sev.prnewswire.com/real-estate/20080430/AQW07030042008-1.html">Redfin Press Release</a>
<a href="http://sev.prnewswire.com/real-estate/20080430/AQW07030042008-1.html">Redfin Press Release</a>
awgee_IHB
New member
[quote author="graphrix" date=1209539080][quote author="awgee" date=1209525596]Can you imagine how fast Countrywide is going to get rid of their REO if they have to maintain them or be fined up to $1000 per day? A few folks in here know how to look up the number of REO that Countrywide has. How many is it?</blockquote>
The Coutrywide Reo <a href="http://countrywide-foreclosures.blogspot.com/">is here</a>, and the actual REO site from <a href="http://www.countrywide.com/purchase/f_reo.asp">CW is here</a>.
14,220 REOs as of 4/17/08, they went down a little bit, but as you scroll down on the blog, you can see the increase in Cali and the decrease in price for Cali. I roughly counted 143 in OC on the CW site, with 3 being in Irvine, and a whole bunch in South County.</blockquote>
Jeesh - How do they stay in biz? 14,220 REOs? At an average loss of let's say $75,000 per REO, that is more a billion dollars in losses. With more on the way?
The Coutrywide Reo <a href="http://countrywide-foreclosures.blogspot.com/">is here</a>, and the actual REO site from <a href="http://www.countrywide.com/purchase/f_reo.asp">CW is here</a>.
14,220 REOs as of 4/17/08, they went down a little bit, but as you scroll down on the blog, you can see the increase in Cali and the decrease in price for Cali. I roughly counted 143 in OC on the CW site, with 3 being in Irvine, and a whole bunch in South County.</blockquote>
Jeesh - How do they stay in biz? 14,220 REOs? At an average loss of let's say $75,000 per REO, that is more a billion dollars in losses. With more on the way?
Anonymous_IHB
New member
JNinWB - thanks, it's interesting to search Redfin with only the bank owned checkbox checked. Some of the prices still seem high though
Ex.http://www.redfin.com/CA/IRVINE/41-ROSE-TRELLIS-92603/home/5901063/bankOwned-2207912
http://www.oodle.com/detail/41-Rose-Trellis-Irvine-CA-92603/795576866/orangecounty/
41 Rose Trellis, Irvine, CA 92603
$1,369,900
3 BR, 3 BA
Sq feet: 2,700 Sq. Feet
Year: 2005
Property Type: Single Family
Location: Irvine, CA
Listed: 1 Month Ago
Description:
BANK OWNED ! Stunning location with ocean view and large wrap-around yard. Home has tons of upgrades. Stone flooring, one of the most stunning kitchens on the market, oversized center island, breakfast nook with dining table and chairs to match the decor, great-room for entertaining, top of the line...
Ex.http://www.redfin.com/CA/IRVINE/41-ROSE-TRELLIS-92603/home/5901063/bankOwned-2207912
http://www.oodle.com/detail/41-Rose-Trellis-Irvine-CA-92603/795576866/orangecounty/
41 Rose Trellis, Irvine, CA 92603
$1,369,900
3 BR, 3 BA
Sq feet: 2,700 Sq. Feet
Year: 2005
Property Type: Single Family
Location: Irvine, CA
Listed: 1 Month Ago
Description:
BANK OWNED ! Stunning location with ocean view and large wrap-around yard. Home has tons of upgrades. Stone flooring, one of the most stunning kitchens on the market, oversized center island, breakfast nook with dining table and chairs to match the decor, great-room for entertaining, top of the line...
Anonymous_IHB
New member
[quote author="awgee" date=1209525596]Can you imagine how fast Countrywide is going to get rid of their REO if they have to maintain them or be fined up to $1000 per day? A few folks in here know how to look up the number of REO that Countrywide has. How many is it?</blockquote>
Maybe, if it gets expensive enough to hold the property, they'll finally give in and do some Rsolution Trust Corporation (http://en.wikipedia.org/wiki/Resolution_Trust_Corporation) thing and just dump huge packages of it to the highest bidder. That'd be cool - then we wouldn't have to wait the painful years and years for the prices to finally come down...
Maybe, if it gets expensive enough to hold the property, they'll finally give in and do some Rsolution Trust Corporation (http://en.wikipedia.org/wiki/Resolution_Trust_Corporation) thing and just dump huge packages of it to the highest bidder. That'd be cool - then we wouldn't have to wait the painful years and years for the prices to finally come down...
Anonymous_IHB
New member
The Road to a Jumbo Mortgage Was Supposed to Get Easier
http://www.nytimes.com/2008/04/30/business/30jumbo.html?_r=1&pagewanted=1&oref=slogin
?It?s a complete joke,? said Jose Lemus, president of Brymus Capital, a mortgage brokerage firm in Santa Ana, Calif. He said a buyer in Southern California looking to borrow $417,000 would pay an interest rate of 5.75 percent, while someone borrowing slightly more for a conforming jumbo loan would pay an interest rate of 6.99 percent.
For a jumbo loan that is not conforming, the rate could be as low as 7.35 percent for someone with excellent credit, Mr. Lemus said, but the rate for someone with average credit could be as high as 9 percent. ?It?s getting harder by the day,? Mr. Lemus said.
Because the rates have not fallen as Mr. Lemus and his customers had hoped, he has not processed a single loan under the new rules.
http://www.nytimes.com/2008/04/30/business/30jumbo.html?_r=1&pagewanted=1&oref=slogin
?It?s a complete joke,? said Jose Lemus, president of Brymus Capital, a mortgage brokerage firm in Santa Ana, Calif. He said a buyer in Southern California looking to borrow $417,000 would pay an interest rate of 5.75 percent, while someone borrowing slightly more for a conforming jumbo loan would pay an interest rate of 6.99 percent.
For a jumbo loan that is not conforming, the rate could be as low as 7.35 percent for someone with excellent credit, Mr. Lemus said, but the rate for someone with average credit could be as high as 9 percent. ?It?s getting harder by the day,? Mr. Lemus said.
Because the rates have not fallen as Mr. Lemus and his customers had hoped, he has not processed a single loan under the new rules.
Strom_IHB
New member
[quote author="awgee" date=1209597143]
Jeesh - How do they stay in biz? 14,220 REOs? At an average loss of let's say $75,000 per REO, that is more a billion dollars in losses. With more on the way?</blockquote>
That's why they reserved $1.5 billion for future losses and wrote off $600MM in their most recent earnings report. They're in big trouble, and I can't believe B of A is still buying them...
Jeesh - How do they stay in biz? 14,220 REOs? At an average loss of let's say $75,000 per REO, that is more a billion dollars in losses. With more on the way?</blockquote>
That's why they reserved $1.5 billion for future losses and wrote off $600MM in their most recent earnings report. They're in big trouble, and I can't believe B of A is still buying them...
Anonymous_IHB
New member
Disappearing now: $6 trillion in housing wealth
<a href="http://latimesblogs.latimes.com/laland/2008/04/disappearing-no.html">http://latimesblogs.latimes.com/laland/2008/04/disappearing-no.html</a>
A Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner $85,000 in lost wealth this year alone.
<a href="http://latimesblogs.latimes.com/laland/2008/04/disappearing-no.html">http://latimesblogs.latimes.com/laland/2008/04/disappearing-no.html</a>
A Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner $85,000 in lost wealth this year alone.
skeptic_IHB
New member
Even Jose Canseco knows when to walk away. Maybe he's been reading IHB?
<a href="http://news.yahoo.com/s/nm/20080501/sp_nm/canseco_foreclosure_dc">Baseball star Canseco loses home to foreclosure</a>
<a href="http://news.yahoo.com/s/nm/20080501/sp_nm/canseco_foreclosure_dc">Baseball star Canseco loses home to foreclosure</a>
graphrix_IHB
New member
[quote author="skeptic" date=1209715375]Even Jose Canseco knows when to walk away. Maybe he's been reading IHB?
<a href="http://news.yahoo.com/s/nm/20080501/sp_nm/canseco_foreclosure_dc">Baseball star Canseco loses home to foreclosure</a></blockquote>
Ah... man... you beat me to it. He has said some stupid things in his life time. But this is the smartest thing he has ever said...
<blockquote>
"I do have a judgment on my home and it to me is very strange because it didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else," he said.</blockquote>
<a href="http://news.yahoo.com/s/nm/20080501/sp_nm/canseco_foreclosure_dc">Baseball star Canseco loses home to foreclosure</a></blockquote>
Ah... man... you beat me to it. He has said some stupid things in his life time. But this is the smartest thing he has ever said...
<blockquote>
"I do have a judgment on my home and it to me is very strange because it didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else," he said.</blockquote>
IrvineRealtor_IHB
New member
He's said some stupid things, but for the most part (with some hyperbole thrown in for effect, of course) he's been bashed for telling it like it is... steroids, womanizing, gambling, and now debt. Having written that last sentence, come to think of it, I think he'd fit in nicely here.