declining values: Freshly Killed Mortgages and Jungle Economics - 06/29/08 11:44 PM
Here in California, its a jungle out there. Buyers have stopped waiting for houses to "GO LOWER". They are not wondering if buying real estate is a "good idea". And they sure aren't thinking about the potential for appreciation.
They have only one thing on their mind: Get in while you can. … (46 comments)
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declining values: Roofs That Leak, Decks That Creak: Sorry, Home Depot, Things Are Bleak - 05/30/08 10:47 AM
They sat together, sipping wine, and gazing out at the lake on the creaky old deck that badly needed replacing. They would need to step gingerly for yet another summer, and live with that precarious deck a little bit longer.
They stepped into the garage, which should have been pitch black. But sunlight danced against the … (11 comments)
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declining values: Another Loan Bites the Dust: What Causes A Property to be "UNACCEPTABLE COLLATERAL?" - 05/24/08 05:28 PM
Here are 2 nasty words that spell disaster for a loan: UNACCEPTABLE COLLATERAL. Do you know what this means? It means the borrower qualified for the mortgage, but the property did not. To our clients, however, a turn down is a turn down. They still take it very personally, even though they shouldn't.
Those … (14 comments)
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declining values: Has The American Dream Been Poisoned? - 05/16/08 11:40 PM
The FORECLOSURE EPIDEMIC and the MORTGAGE CRISIS that has rocked our economy to its very core, will be discussed and debated for years to come. Historically, it will forever define this decade, and, along with 9-11, leave an imprint on an entire generation.
Will we remember this as the decade when the American Dream became poisoned? Maybe … (38 comments)
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declining values: Rent Your Upside Down House and Buy a Cheap REO: Not Gonna Happen - 05/06/08 03:26 PM
Here's a heads up: This happened in our office 3 times recently. Mortgage applicants owned and occupied upside down houses (upside down = owe more than the house is worth). Their intent was to buy REOs which were superior in quality and/or location to their existing homes . They would then RENT their upside down house … (28 comments)
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declining values: Ben Bernanke and The Rotten Eggs - 05/06/08 11:28 AM
Earlier this year, as Mr. Bernanke continued to drop rates, I came out with the following statement: It isn't about rates. Its about guidelines. Rates could go to 2% and real estate can be cheap, but it doesn't matter if no one can qualify for a mortgage.
Those of us in the mortgage business could easily … (7 comments)
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declining values: One Dead Goose and Another Loan Goes Belly Up: How Declining Value Restrictions Hurt Property Values - 05/01/08 12:52 AM
She leaned against the doorway of my office, this messenger of bad news, like so many before her had done. My consolation prize? A large Butterfinger, which had been placed on my desk before she retreated quickly back to the doorway. She didn't dare to sit in the chair (and consider herself a guest in … (66 comments)
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declining values: The Stars Line Up for First Time Buyers in California - 04/19/08 10:33 AM
Our area of expensive real estate out here in Coastal California is famous for many things, but NOT for first time buyers. Long ago these buyers were chased away by high prices into the interior of California where vast stretches of open land meant builders could build cheap houses, and cheap gas meant that buyers could … (5 comments)
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declining values: Credit Crisis Aftershocks: Southern California Home Prices Plummet 24% - 04/16/08 01:24 PM
If you think of the current credit crisis as an earthquake, then the aftershocks could best be described as declining values in real estate. For those of you NOT in California, aftershocks are much smaller rumbles that shake the ground, sometimes for days, after an earthquake occurs.
Why are aftershocks so scary? Because you are rudely reminded: … (8 comments)
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declining values: Zoom Zoom Cash and The Lifestyle We Couldn't Afford - 04/12/08 08:57 PM
For years, Californians thought it was pretty funny to lament about our zoom zoom real estate. With glass of wine in hand and proverbial balmy weather as a backdrop, friends would often whisper to each other: "We couldn't even afford to buy the house we live in".
Then they would laugh.
Well, no one is laughing anymore. That's because even though we … (20 comments)
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declining values: The Mortgage Crisis, As Explained to Car Geeks - 03/16/08 12:40 PM
I'm in beautiful Sedona, Arizona, with all my friends in the auto leasing business. They all own leasing companies in Arizona, California,and Oregon. Naturally, they have asked me, the one real estate person in the group, to explain the mortgage crisis to them.
They also asked me to explain blogging, but I … (13 comments)
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declining values: Max Out Your Equityline Before You Are Frozen Out by the Bank - 02/27/08 02:40 PM
In my e-mail today from some of the other mortgage brokers in the office:
First E mail:
A friend of mine has a 2nd with Indy Mac. She owes 25k and has a line amount of 100k. THEY HAVE FROZEN HER ACCOUNT. I am starting to hear of this more and more. If … (13 comments)
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declining values: How Your Bad Boy Mortgage Could Cost You the Ability to Finance A Car - 02/22/08 10:55 AM
Yes, declining values have even hit the auto loan business.
Here's a heads up: Those guys who finance cars? They don't want you to have one of those bad boy mortgages with a negative amortization feature.
Over at our family's auto leasing company, one of our good credit buyers was mysteriously turned down when he applied for financing on his … (6 comments)
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declining values: The Anatomy Of A Foreclosure: The Sad Decision to "Let the House Go" - 02/21/08 12:10 PM
****Good Morning America called me this morning and asked to interview the real "Jake". Jake agreed and will appear on Good Morning America tomorrow, (Saturday). Segment is on the housing crisis in California. Talk about the power of ACTIVERAIN! For anyone who wants to see the REAL "Jake", tune in tomorrow!
It is … (86 comments)
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declining values: Upside Down On Steroids: The Demise The Mega McMansions - 02/08/08 12:28 PM
Last night I watched with interest as ABC's Nightline did a feature on a neighborhood of McMansions in Southern California....or I should say: the demise of a neighborhood of McMansions? The mortgage crisis has TRAPPED the owners in their monster homes, unable to sell, and awash in negative equity.
Not only did … (14 comments)
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declining values: Pollyanna Never Sold Real Estate: How Americans Lost Their Optimism & Trust - 01/30/08 11:58 AM
There is definitely something about Broker Bryant's posts that always get me on my soapbox. His most recent feature includes some fascinating responses to the often heard Pollyanna statement: "NOW IS A GREAT TIME TO BUY REAL ESTATE".
Well, it isn't a good time for everyone.
This is like saying "Now is a great time … (11 comments)
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declining values: SALE PENDING (And Praying For Lending) - 01/10/08 12:48 PM
Today, when a Realtor asks a mortgage broker this: "How long should the loan contingency be?", a mortgage broker just might say: "We can remove the contingency the day the loan closes."
Why? Because until the lender FUNDS the loan, there is danger of it falling apart.
In advance, I apologize to all of the listing … (67 comments)
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declining values: Warning: Do Not Pay For Your Car With Your Equityline - 12/12/07 09:51 PM
Disclaimer: I currently own an auto leasing company and spent 20 years financing cars. Fact: I am a mortgage broker because I love real estate more than I love cars. Please, if you consider this a conflict of interest, read no further. Personally, I feel this gives me a very unique insight on the … (9 comments)
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declining values: A Real Estate Fable: The Winter of Skinny Rats - 12/12/07 04:12 PM
Two rats met late one December afternoon in 2007 to discuss a mortgage. BUYER RAT had been referred to MORTGAGE RAT by their mutual friend, REALTOR RAT.
"I want to buy cheddar cheese," said Buyer Rat, "but I need a loan. What is your rate, Mortgage Rat?"
"Ah, Buyer Rat, I see you have not bought any cheese … (7 comments)
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declining values: Buy Stupid, Sell Smart (The Forrest Gump Way to Buy Real Estate) - 10/16/07 11:30 AM
"BUY LOW" is the classic advice for buying real estate. But how low is low enough? I say, a BETTER STRATEGY is to just BUY STUPID. Funny thing, you can get rich much faster being stupid. Just ask Forrest Gump.
When you buy stupid, you don't need to wonder when the market will bottom out. Nope, all you need … (12 comments)
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declining values: The Triple Whammy: Sinking Into Adjustable Rate Quicksand - 10/09/07 06:47 PM
Now, why would anyone be afraid of a little old adjustable rate loan, going up just a little bit, in just a little while? Well, one thing that was not mentioned in Michael Mape's blog today was what I call THE TRIPLE WHAMMY that occurs when an "interest only" loan adjusts. Here's how an adjustable can … (17 comments)
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declining values: Do Not Pass Go, Go Directly to Jumbo Jail - 09/27/07 10:02 AM
We had a laugh in the office last night when I announced "I'm in Jumbo Jail". Some of my fellow mortgage brokers suggested my new slogan be "Janet does Jumbo"(I don't THINK so!) This was our after-hours, end of the month, blow-off-some-steam session. September has been a tough month, especially for those of us … (9 comments)
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declining values: Some Ugly "D" Words In MortgageSpeak: Distressed, Declining, Discriminating? Disturbing! - 09/23/07 11:46 AM
Thank you Scott Gromley, for beating me to the punch by asking in your excellent post if our California lenders are redlining via their new policy of placing every county in the state in one of these three categories:
DistressedDeclining Stable Honestly, I used that very same word, "redlining", to my colleagues when that same e-mail crossed my … (6 comments)
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declining values: They Threw Us A Bone, But Can We Still Do A Loan? - 09/19/07 04:40 PM
On the front page of today's paper was the following headline: "Fed Rate Cut Pumps Up Economy". If you believe like I do, that a great deal of our economic woe lies with our stagnant real estate market, this headline is good news. Or is it only good press?
For several months … (7 comments)
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declining values: Rest In Peace, McMansions - 09/06/07 12:28 PM
American's Most Opinionated Mortgage Broker asks us, "Who the hell is going to buy all those McMansions?"(if not the babyboomers, and not the new generation of homebuyers who seem to prefer the urban life?) Funny thing is, he isn't the only one asking this question here in California, where a … (42 comments)
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declining values: Sell While You Can, Bank Your Equity. Ride Out the Storm as a RENTER - 08/30/07 09:51 AM
I own 400 shares of Intel stock. On August 31, 2000, this stock reached its all time high: $74.87 a share. Today it trades at around $25 a share. Do I wish someone would have told me to SELL THAT STOCK while the value was still this high (and then buy it back when it … (15 comments)
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declining values: One Brown Eye, One Blue Eye, and the Mortgage Still Blew Up - 08/23/07 08:22 PM
Just when we found the one buyer the bank would approve, you know, that guy with one blue eye, one brown eye, an 850 score and $300,000 down? Yeah, that guy. Guess what? The bank takes one look at the appraisal (of a property that appears to be a give-away price) and slashes it … (38 comments)
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declining values: Mortgage Lenders Never Considered Anyone Would Be UPSIDE DOWN - 08/22/07 12:09 PM
There is a place where being upside down in a loan is the NORM. It doesn't create a crisis. Lenders don't close their doors because of it. Borrowers accept it, and still willingly buy. Where is this place? It is none other than your SECOND biggest asset: Your car. Your truck. Your SUV. … (23 comments)
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declining values: Why A Rate Drop Won't Save the Real Estate Market - 08/16/07 06:10 PM
Let me get straight to the point: It isn't about RATES. Rates could go MUCH LOWER, but if no one can MEET THE REQUIREMENTS to buy or refinance a house, it just doesn't matter. What will drag real estate down in the near future is not getting better and won't get better … (19 comments)
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declining values: Mortgage Crisis: An Unprecedented Chain Reaction is Bringing Real Estate to Its Knees - 08/04/07 10:31 AM
As summer has worn on, and with very little fanfare, a crisis has been developing in the mortgage industry that will CHANGE THE REAL ESTATE INDUSTRY FOREVER. This is far more than simply "the summer of discontent" for loan officers. It is imperative that all of us understand these developments and what they mean to … (26 comments)
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declining values: Buy Real Estate NOW: 5 Keys to Taking Advantage of a Down Market - 08/03/07 11:42 AM
Just when you became convinced prices were low enough to buy some real estate, along comes the mortgage meltdown. No more 100% financing. Highly restricted stated income. Higher rates than last year. Bad things happening to people with adjustable rate mortgages. Stop waiting. Now is the perfect time (while everyone else is trying … (5 comments)
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declining values: Californians: Insure Yourself Against Declining Values Before It's Too Late - 07/21/07 10:32 AM
There is more than just earthquakes shaking up California these days. Real estate values continue to decline, rendering homeowners unable to sell, unable to refinance, stuck with higher rates, and in the very worst cases, facing foreclosure. MSN Real Estate just named 5 California markets that will have over a 50% … (4 comments)
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declining values: BAD, Mortgage Broker, BAD, BAD, BAD! - 06/25/07 02:13 AM
True Confession: One of my clients is in foreclosure. I know, I know. Somewhere, some reporter is screaming, "BAD, Mortgage Broker, BAD, BAD, BAD! How could you be so heartless as to mis-inform and manipulate this poor unsuspecting borrower?" Quickly now, let's all do something to bail them out!
Well, I've got news for you : … (19 comments)
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