BUT DAMN #248 REAL ESTATE: Forget Chrysler & Ford Motor, I Need A Bail Out!

Yes this is the house that I wanted four years ago...
BUT DAMN!
It's now worth less and I'm making less.
This Brotha' right here needs a bail out.

I'm sick and tired of Banks, Airlines and now the "Big 3" of CHRYSLER ,FORD AND GENERAL MOTORS asking for a bailout/ hand out, relief, whatever you want to call it. My mortgage balance is 530,300. the monthly payment is $3,300. And now a house down the street just sold for only 270,000. Why pay for a house that is not worth the balance sheet.

Brother I feel your pain and I don't want to give you false hope that once Obama gets in things will turn right around. I can only say that you need to hold on to what good credit you have right now. Here are some simple answer and question that will get you on the way to possible relief.

If I can’t pay my mortgage, why should I call my mortgage lender/servicer?

Your mortgage lender can help you identify the options available to you, should you have trouble paying your mortgage.

When should I call my lender?
You should contact your lender as soon as you know you will have difficulty meeting your mortgage payments. You do not have to wait until your interest rate re-sets, nor do you have to wait until you are already behind in your payments. In fact, the sooner you call, the more options will be available to you. No matter what your situation is, CALL TODAY.

What if I don’t want to call my lender?
Call the Homeowners HOPE™ Hotline – 1.888.995.HOPE. This hotline is staffed by HUD-approved credit counselors who can guide you through possible options.

What is a loan workout?
Either a loan modification or a repayment plan.

What is a loan modification?
A modification occurs any time any term of the original loan contract is permanently altered. This can involved a reduction in the interest rate, forgiveness of a portion of principal or extension of the maturity date of the loan.

What is a repayment plan?
A plan that allows the borrower to become current and catch up on missed payments that are appropriate to the borrower’s circumstances

The Organization HOPENOW was our source and they have hotline counselors willing to to talk with you FREE, so check them out. This is the link but the nuymber is listed above.

Finally, theree are also FREE government links that have their own sites and have some answers.
Fannie MaeFreddie MacHome Loan Learning CenterHomeownership Preservation FoundationMyMoneyManagement NeighborWorks America

Move By Fannie Mae and Freddie Mac Just May Put Minorities Back In The Housing Game!

Honey, Time To Go House Huntin!

The federal government loosened strict capital requirements on Fannie Mae and Freddie Mac on Wednesday, allowing them to inject billions of dollars into the nation's sagging mortgage market by stepping up their purchase of more loans.

The Office of Federal Housing Enterprise Oversight said it is reducing Fannie Mae's and Freddie Mac's capital-surplus requirement to 20% from 30% previously. The move is expected to add up to $200 billion of immediate liquidity to the market for mortgage-backed securities and, combined with other actions, should enable the two companies to buy or guarantee about $2 trillion in mortgages this year.

Wall Street was clearly pleased, with shares in the government-sponsored mortgage companies rising sharply for the second straight day. Investors rushed to buy the stock after this one move put shares up more than 60% from their lows of last week.

The swings in these stocks have been very large indeed. Fannie and Freddie traded in the high $60s last summer, before the full extent of the mortgage meltdown became apparent. Since then they have traded as low as the high teens.

Check out the full story at FREDDIE MAC & FANNNIE MAE TO PROVIDE HOME MORTGAGE RELIEF

FBI Probes Countrywide in Possible Fraud, Which Includes Exploiting Black Borrowers

As the whispers grow louder, Countrywide Financial Corp., the largest U.S. mortgage lender, is now officially under investigation by the Federal Bureau of Investigation for possible securities fraud.

Along with San Francisco-based Wells Fargo & Co., both were recently subpoenaed as part of an Illinois probe into whether minority borrowers were steered into higher-cost loans. Countrywide pledged to cooperate in any probe and said it analyzes its data to ensure that borrowers are treated fairly. Wells Fargo said race isn't a factor in lending.

Corporate CEO's get taken to the woodshed

Countrywide is among at least 14 companies that the FBI is checking for possible accounting violations related to the subprime lending crisis, including mortgage lenders, housing developers and Wall Street firms that package loans as securities. The FBI announced the review in January without identifying any of the companies.

Lenders are facing increased scrutiny from regulators as record foreclosures displace homeowners and depress property values. U.S. mortgage foreclosures rose to an all-time high at the end of 2007 as borrowers with adjustable-rate loans walked away from properties before their payments increased, the Mortgage Bankers Association said this week.

Countrywide yesterday declined 13 cents, or 2.5 percent, to $5.07 a share, 20 percent lower than its closing price on Jan. 11 when Bank of America, the nation's second-biggest bank by assets, offered to buy the company for about $4 billion in stock. The stock has declined 86 percent in the past year in New York Stock Exchange trading.

Forty-two percent of new foreclosures in the fourth quarter were people with adjustable-rate subprime mortgages, given to borrowers with limited or tainted credit records, according to the report. Those types of loans accounted for about 7 percent of all mortgages.

Investigators are focusing on whether Countrywide officials misrepresented the company's financial position and the quality of its mortgage loans in securities filings. [CNN]

BUT DAMN #240 REAL ESTATE: MAKING ROOM FOR SENIOR PARENTS

I love our house. I want to buy a second home for mom & dad,
close to us and new...

But damn ....

The new ones are all two story homes and my parents are 80 years old.

Welcome to the new millennium. You're a "Boomer"right, probably in your forties or fifties. Your kids are not out of the house and your parents or in-laws are living longer. You are now a big game hunter. Your ever elusive prey is ... a new one story house. Unfortunately for the last 20 plus years, with land at a premium and "McMansions" (the most popular, or profitable) type of home built, finding a single level place today with the amenities boomers demand is like finding the proverbial needle in a haystack.

Why is single level so important? Boomers are the first generation to have parents alive and well into their 70's and 80's, (and even 90's!) I know my grandfather was dead at age 57 of a heart attack, but his daughter (my mother) will be 81 this month. She travels, she gardens, she cooks, she gives parties, and her social calendar is so full that I must call her weeks in advance to have lunch with her. So I think the immediate answer is:

Buy a home in a 1950's neighborhood and do an extensive renovation.

These homes usually came with bigger lots, making it easier to push out as opposed to going up. This is also going to be a good project for "flippers." The market for single level housing is being ignored. Big mistake. Single level, no stairs is going to be a hot ticket. Building a brand new rancher in some states can be costly because of the price of land. Land use to be 10% of the cost of your purchase or decision to build. Now that land cost is between 30% and 40%.

You are definitely going to see those 1950 ranchers being snapped up. They are usually missing the big master bedrooms, and maybe one bathroom, but people are desperate to have that single level and are remodeling these houses like crazy, adding on the space they need. Some neighborhoods are completely unrecognizable as a result of this. This is the wave of the future.

Who's my target buyer? First time buyers are out "last time buyers are in!" First Time Buyers usually have limited cash, haven't established a lot of credit, they're still looking at sticker shock, going from renting to a mortgage payment and who can't really jump through the new hoops these mortgage companies and banks are putting up. Last time buyers usually have great credit, rental property, savings and cash from another house they are trying to get rid of. They have probably been in that other house 15 to 20 years. They bought while it was cheap, fought through those awful interest rates, and now willing to sell for a couple of hundred thousand in profit instead of the "max-max" younger sellers are looking for.

Buying the two story with the extra bedroom downstairs?? Well it's all about location, location, location ... location of the bathroom that is. That "powder room" down stairs next to the guest room/den is not going to get it. If there is to be a room for a parent on the first floor, there better be a "full bath" very close to that bed room.

Janet writes: Without getting into the economics of building the 'more costly per sq.ft. rancher', we are in a precarious situation now. With my mother almost 89 and mentally alert but non ambulatory, not only is one floor essential but the proximity of the bath facilities relative to the living areas are critical! We have a 'cape cod' style house with bedroom facilities on each floor, but the closest bathroom is 'miles' away from the living area.

Maria writes: It just so happens that I have my parents living with me. I would have loved a ranch, and in future I would still like one, but this time it actually works out for us to have 2 levels. My parents who are in their 80's have a master bed/bath on the first floor, and the rest of the bedrooms are on the 2nd floor. It gives me a sense of privacy. You can get along fine with your elderly parents, but at times it can be somewhat stressful. (Although, having them live with me is the best thing I've ever done.)

Lesson learned, keep the bath nearby. In closing there is only one exception to the one story ranch purchase or the two story with a master bed and bath on the main floor and that's my perennial favorite; ... the two story home with the mother in-law house behind or attached. And that my friends is the best of all possible worlds.

Inspired by Janet Guilbault, California Mortgage Expert thanks.

BUT DAMN #228 B of A NO FEE MORTAGES ARE FOR REAL, DOG!

I've heard about those "No Fee" mortgages.

BUT DAMN ...

One bank says I get $250 if it doesn't work!

Bank of America insists its new "No Fee Mortgage Plus" delivers what it says without raising interest rates to applicants. The program comes with none of the traditional mortgage and settlement charges -application fee, appraisal fee, credit, title insurance, title search, private mortgage insurance, closing fees, among others-and offers competitive rates.

Now you folks know that on a regular home loan purchase, fees can amount to 3 to 5 percent of the mortgage amount. This can run in the thousands of dollars.

For me, the worse part about buying property is seeing all the "junk fees" tagged on and all the mortgage brokers and loan officers claiming they are "industry standard". The standard is to take all us buyers to the cleaners.

Bank of America is talk'n the talk. They are trying to make a bold move in time of very stagnent interest rates and subzero home purchases.

Does B of A walk the walk? Hell yes! Check this out. B of A is so sure of it'self they suggest, "Take your B ofA quote in hand and comparison shop with any other lenders. If you are approved by B of A for the loan and then choose to close with a competitor, the bank promises to pay $250!!!

Ok, so what are the catches?

1) You can't apply unless you already have an account with the bank, however minimum.

2) State and local taxes, property taxes and other government levies are not covered. Nor are prepaid interest, discount points, hazard or flood insurance and homeowner association fees.

3) And ... The program is for home purchase or second properties. No refinancing allowed.

That being said, go out give it a try. After you are done, pull up this same blog article. And leave your comments by clicking on "FOLKS WHO GET IT"