Yesterdays rate cut will have little if any impact on 30-year fixed mortgage rates, which are determined by factors that operate largely outside of the Federal Open Market Committee's reach, says Keith Gumbinger of HSH Associates. "Any change in the rate has little to do with long-term mortgage rates," he says. But in its statement the Fed said it could expand a recently announced program to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac that has already driven mortgage rates down to a very attractive 5.28 percent, according to HSH Associates. It also reiterated that it was looking at the possibility of buying long-term Treasury bonds. Both of these announcements could work to bring rates even lower.

It may help you some on the credit cards - prime floating financing and such.

A few weeks ago, I was speaking if only we could get rates down to around 4.5% through government help, it would really help the markets.  And, many commented that it wasn't a good thing for the government to be involved in driving rates down.  Well, for those capalists (including me), it appears the market has found the mid-4's for rates.

And the word on the street, is that we could see rates below 4% in the near future. Take advantage while it lasts as inflation fears will set in; this will be a nice "shot in the arm" but won't last long.

View our website at Housedog.com for homes in the Charleston SC and Mount Pleasant SC Area.

PHILADELPHIA (Reuters) - Fannie Mae will allow tenants to remain in their homes and avoid eviction even if the building's landlord goes into foreclosure, The Wall Street Journal reported on Sunday.

Fannie Mae, a government-controlled mortgage finance company, previously had said it would not evict tenants during the year-end holiday season.

Despite that pledge, Fannie Mae came under pressure from a legal-aid group that threatened to sue over recent evictions in Connecticut, the newspaper said in its electronic edition.

Fannie Mae plans to sign new leases with renters living in foreclosed properties owned by the company. It also would ensure that its holiday moratorium on new evictions was being followed until the new policy becomes effective in January.

A smooth-talking salesperson tells you he can renegotiate your mortgage with your lender and help you keep your house. He'll require a fee (as much as $1,000 or more) before he can start. Problem is, the "deal" he gets is one that you could have gotten on your own, and it probably won't be enough to keep you in your home. However, because he was "successful" in getting the loan renegotiated, he has technically earned his fee and there's little that you can do about it. You don't have to pay someone else to negotiate with your mortgage company. If you're having problems making your payments, contact your lender yourself.

Mortgage rescue scams target people who fear losing their home and ruining their credit due to foreclosure. A "real estate investor" contacts you and offers to bring your payments current if you'll sign over the deed. He offers to keep making the payments in the future. You'll need to move out so he can rent the house, but you won't have a foreclosure on your credit. Here's what really happens: the "investor" rents the house, but he'll never make a mortgage payment. Eventually, the bank will foreclose, you get the black mark on your credit and the renter will be evicted. The only one who gains is the "investor," who collected his free rent.

The banking crisis is presenting scammers with another golden opportunity. We're hearing numerous complaints about official-looking e-mails that claim to be from a bank or from the FDIC (Federal Deposit Insurance Corporation). These e-mails prey on your fears, claiming your bank is in trouble or that money has been stolen from your account. Most ask for your personal information, which they then use to steal your identity or illegally access your account. If you receive an e-mail from your bank requesting any personal information, contact your bank immediately and do not respond to the e-mail.

According to the Federal Trade Commission, there is a new round of e-mail scams out there that are tied to the financial crisis. Many of these e-mails "phish" for personal information -- your Social Security number, account numbers, passwords, etc. The scammer then uses that info to steal your identity. Proceed with extreme caution if you get an e-mail that purports to be from your mortgage company, a government agency, or other official institution. If the e-mail is requesting ANY personal information, you know it's a scam. No government or reputable financial institution will ask you to share confidential information in an e-mail.

THIS - from the New York Times:

"Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers."

Let's just hope the media writes even more positive articles and rates continue to fall.  This certainly will have a positive impact on the real estate market's recovery.

Read more of the article:

http://www.nytimes.com/2008/12/06/business/yourmoney/06money.html?_r=1&em

For more on Charleston SC Real Estate Mount Pleasant and Summerville, go to Housedog.com.

Mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended November 28 soared a record 112.1 percent to 857.7, the highest reading since the week ended March 21 when it reached 965.9.

Potential borrowers were lured by enticing mortgage rates, which dropped dramatically after the Federal Reserve unveiled a plan last week to buy up to $500 billion of mortgage securities backed by government-sponsored enterprises, Fannie Mae (FNM.P: Quote, Profile, Research, Stock Buzz), Freddie Mac (FRE.P: Quote, Profile, Research, Stock Buzz), and Ginnie Mae. The program also entails buying up to $100 billion of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

"Many borrowers missed an opportunity to take advantage when rates dropped sharply for a brief period when the GSEs were placed under conservatorship," Orawin Velz, Associate Vice President of Economic Forecasting, said in a statement.

"When rates plummeted following the Fed's announcement that it would buy GSE debt and MBS, many of those on the sidelines decided to quickly jump in and take advantage of lower rates before they began to rebound," she said.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 5.47 percent, down a whopping 0.52 percentage point from the previous week, the largest drop since 1990 when the MBA started conducting the weekly survey.

Interest rates are at their lowest level since the week ended June 24, 2005, when they reached the same level. Interest rates are sharply below the peak of 6.59 percent reached during the summer, but only slightly below the 2008 low of 5.49 percent in January, according to the trade group.

Interest rates were below year-ago levels of 5.82 percent.

The MBA's seasonally adjusted purchase index rose 38.0 percent to 361.1, the largest rise since the week ended February 24, 1995. The index, however, came in well below its year-ago level of 464.3, a drop of 22.2 percent.

Overall mortgage applications last week were 8.3 percent above their year-ago level. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 29.7 percent.

When you miss your mortgage payments, foreclosure may occur. This is the legal means that your mortgage company can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your mortgage company or HUD could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your mortgage company or HUD an additional debt. Foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future. So you should avoid it if all possible!

DO NOT IGNORE THE LETTERS FROM YOUR MORTGAGE COMPANY. If you are having problems making your payments, contact your mortgage company immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help. Stay in your home for now. You may not qualify for assistance if you abandon your property.

Some of your options include the following:

• Special Forbearance
  Your mortgage company may be able to arrange a repayment plan based on your financial situation. Your mortgage company may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your mortgage company to show that you would be able to meet the requirements of the new payment plan.
  
• Mortgage Modification
  You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
  
• Partial Claim
  Your mortgage company may be able to work with you to obtain an interest free loan from HUD to bring your mortgage current. You may qualify if:
  • Your loan is at least 4 months delinquent but no more than 12 months delinquent;
  • Your mortgage is not in foreclosure and
  • You are able to begin making full mortgage payments
  When your mortgage company files a Partial Claim, HUD will pay your mortgage company the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest free and will be due if you sell or leave your property, or when your mortgage matures.
  
• Pre-Foreclosure Sale
  This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. You may qualify if:
  • The "as is" appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value
  • The loan is at least 2 months delinquent prior to the pre-foreclosure sale closing date and
  • You are able to sell your house within 3 to 5 months (depending on what your mortgage company agrees to).
  An additional benefit to this option is the assistance you will receive with the Seller Paid closing costs.
  
• Deed in Lieu of Foreclosure
  As a last resort, you may be able to voluntarily "give back" your property to the mortgage company. This won't save your house, but it will help your chances of getting another mortgage loan in the future. You can qualify if:
  • You are in default and don't qualify for any of the other options
  • Your attempts at selling the house before foreclosure were unsuccessful and
  • You don't have another mortgage in default.

A housing counseling agency can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your mortgage company.

One last thing, beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

• Equity Skimming
  In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the mortgage company to foreclose. Remember that signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.
  
• Phony Counseling Agencies
  Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself, for free, such as negotiating a new payment plan with your mortgage company or pursuing a pre foreclosure sale. If you have any doubt about paying for such services call a HUD-approved housing counseling agency. Dothis before you pay anyone or sign anything.
  

Here are several precautions that should help you avoid being "taken" by scam artist:

• Don't sign any papers you don't fully understand.
• Make sure you get all "promises" in writing.
• Beware of any loan assumption where you are not formally released from liability for your mortgage debt and contracts of sale.
• Check with a lawyer or your mortgage company before entering into any deal involving your home.
• If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.