Rates
fluctuated a lot this week, ending on a high. My alerts are pointing to lower
rates next week, but given current market conditions, I am not sure any forecast can be relied on. Loan modification services are popping up all over, and prospects are price
shopping for the service under the mistaken impression that LM service is basically a processing
service. Nothing is further from the truth! Lenders want to give as little as possible, distressed borrowers don't
know how to get the best deal, or what the best possible deal can be. You can get financing without a mortgage
broker, but getting LM without solid
professional representation is a bad idea! - Paul
A prominent economist and comfort
from the past...
<
/span></
span>In the midst of the current panic, economist Robert J.
Samuelson offers some reassurance in his Newsweek column in the October 13 issue. His headline asks
"Is This a Replay of 1929?" and his answer is generally "not even close," but it is his historical
perspective on the stock market that is most heartening. Read more
"For the week ending Wednesday, Oct 8 longer-term mortgage rates fell for the first time in three weeks,
roughly following bond market yields," said Frank Nothaft, Freddie Mac vice president and chief economist.
"Meanwhile, the latest housing market data showed some pickup in home purchase activity in August. Pending existing
home sales in August rose 7.4 percent, reflecting the largest monthly increase since October 2001, and July’s
figures had an upward revision, according to the NAR. Read more
Freddy Mac rate surveys. 1-3 week trend: ??
Freddy Mac rate surveys. 1-3 week trend: ??
Short sale or loan modification?
My recommendation: Go for both! LM is preferred because </ font>
My recommendation: Go for both! LM is preferred because </ font>
borrowers get to keep their homes and get a new financial beginning (the quality
of which depends on how good the LM actually is). I have set up a referral program for loan modifications. Go here to
find out how it works, to register, and to make
referrals
online.
Lenders are starting to prefer LM over a short sale
Well, they should because it minimizes the loss on the loan. This week I learned of a first scenario where a lender responded to a short sale request with a LM proposal. I expect to see more of this.
Well, they should because it minimizes the loss on the loan. This week I learned of a first scenario where a lender responded to a short sale request with a LM proposal. I expect to see more of this.
Fed, central banks cut key rates
In an unusual coordinated move, the Federal Reserve and other major central banks from around
the world slashed interest rates Wednesday to keep an escalating financial crisis from becoming a global economic
meltdown. Reminder: This impacts short-term rates only! Read
more
<
/font>_________________________
The most effective way to do it, is to do it.
(Amelia Earhart 1897-1937?)
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