Call to Action - We must fix the real estate market ourselves !!!

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

real estate call to action 

If the public and government ever needs to hear our voice, it's NOW !!! I never like to sound negative in my blogs, but we need to face reality. Yes, there are some reports saying that the economy is turning around. There are some reports that say that people are spending money.  And even some realtors are saying that they are busier than ever before, in the last 4 months or year. But let's break down some of the reasons why it might seem positive, when overall, I believe that it's really bad out there. This is just my opinion.

Keep in mind, most of what is mentioned below would not cost the taxpayers extra money. So important.....

 

  • Real Estate is very local.  Some markets are flourishing now, some are average, and some are just outright sluggish. Part of the problem is that many first time homebuyers can't buy, which doesn't allow for those that own a home to move up or out. I call this the ripple effect. I'll talk about this later.
  • The news reports that people are spending more money. Okay, but what about unemployment that might hit 10% very soon. What about the fact that many Americans just got their tax refunds back and might just be willing to spend it, rather than save. The summer and nicer weather makes many of us spend also. 
  • Many companies reducing their prices, such as airlines and companies that book trips. People are using this to their advantage. Yet, specific foods are costing much more, which isn't mentioned often.   

 

news

 

Let's not forget about the news. People report what they want us to hear in many cases. No matter if it's right or wrong. In other cases, realtors or loan officers are interviewed, giving misleading information. Or there are some that claim to be experts in their field, yet they have no clue in what they are talking about. I wrote about it here, "Hey media outlets, I am pissed."

Overall, we need to be heard, in regards to real estate solutions. Talk to those in the trenches and possibly help correct this mess.

 

 

 

target money and find real estate solutions

Target Money - We need to create better outlets - Call to Action

- Foreclosures- We keep seeing more and more foreclosures and inventory that is not selling.  We need to figure out a few programs to help get these foreclosures off the market. I talk about possibly using the seller-funded DPA's as a way to increase the purchases of foreclosures.  Please read : Seller-Funded programs can work and have worked in the past.

    What about using the $8,000 Tax Credit as a way to help curb the foreclosures. How allowing to get the whole tax credit and be able to use it as your down payment, if you by a foreclosure. How about increasing the first time homebuyers tax credit to $10,000 if you buy a foreclosure. And keep in mind that HUD has a $100 down payment program on all HUD programs. Why can't we make something like this work on foreclosures?  At least try something.

 

 

- Investor properties- How about making better programs and giving incentives if you buy an investment property. Now, I am not talking about just anyone. You would need to have a proven track record when it comes to investment properties. There have been many realtors that have stated that rentals have picked up in certain areas. Beth Forbes wrote about how she solved the housing crisis.  Explaining how we can turn around some of the real estate crisis by getting investors more involved.

 

 

           - Seller funded down payment assistance programs and or 100% financing - Many of you will disagree with these statements, that we need to bring back seller-funded down payment assistance and or 100% financing. Sure, I will agree partially that buyers should have some skin in the game. But what about VA loans and USDA loans.  They allow for 100% financing and they have a decent track record. I am currently working on some stats to prove this. As mentioned above, how about allowing some of the first time homebuyers tax creditbe used for the initial down payment. As of now, this is how the tax credit can be used. : Tax Credit can be used for partial down payment & closing costs.

       HUD did try to get 100% financing approved, but congress shot it down. And HUD wanted seller-funded DPA's discontinued at the same time. I will agree, that with these types of loans comes higher risk. But many of the figures from the past were of those that had credit scores under 600. If we raise the standards and requirements on these kinds of programs, it will lower risk in my opinion. There is a main reason to these foreclosures, and it wasn't seller funded DPA's. Sure, some did foreclosure, but so did every other type of loan program. Besides, most FHA programs require 620 credit scores now anyhow. SO we can use this as a standard/guideline. And I would rather my client keep $3,000 to $5,000 in their pocket after closing, then dump it into the house.  In my opinion, Lenn Harley did a great job in bringing up this point. And please read the 2nd comment.  Please read : Skin in the game? WHo?  Homebuyers or Wall Street?

 

 

 

Conclusion :  Here is some information that doesn't get mentioned often. The tax credit being raised to $15,000, in my opinion, will not open up the real estate flood gates. Keep in mind, you need at least 3.5% of your own money for the down payment. Also, these tax credits will cost the tax payer money in the near future. Who do you think is paying for this kind of money being printed by the government.

Foreclosures, because of 100% financing? So many scream that you need skin in the game, money into the real estate transaction. This can be a matter of opinion, backed up by misleading information. Keep in mind, the subprime market and 100% subprime loans didn't help in many cases. Coupled with borrower who had low credit scores and who were assisted with such programs as the seller-funded down payment assistance. Let's look at the reality of this. People losing jobs is a huge reason to why people lose their homes and go into foreclosure. We can sit here and point fingers at so many issues, such as the DPA programs and or not putting skin into the transaction. People without income, just can't pay their bills.

Lastly, those that state that the current tax credit, and possibly raising the tax credit to $15,000, will boost the economy. That it will stimulate it immensely.  Yes, it will help, but I don't think it will solve our real estate industry or help it as some think. As mentioned, we need to make the monies available upfront to be used as your initial downpayment.

 

 

 

My pleadge to you :  I want to make this work, hoping to get some changes made in congress now.  Not waiting for the economy to get worse.  If you have other ideas or want to add to some of my ideas above, please list them in your comment. My goal is to get some loan officers, realtors, and politicians to meet at a round table in the next month, to possibly hear these thoughts and opinions. I am working on this and hope to get some big time media coverage for this event also. Anyone that has any contacts with both politicians or the media, please let me know. And anyone that might want to participate in this round table discussion, please let me know. My goal is to possibly hold something in D.C. in the next 3 weeks.  thanks

 

 

Further thought & explanation - Matt Stigliano expanded on my post and we actually think a like. He did an excellent job at breaking down some of my thoughts and elaborating on them, expanding on them. Please read : Thoughts from a Round Table

 

 

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Janice Roosevelt 06/17/2009 12:32 AM
  2. Gerry Suarez Jr. 06/18/2009 12:51 AM
  3. Susie Blackmon 06/18/2009 09:15 PM
  4. Tom Davis 01/23/2010 01:12 PM
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Rainmaker
1,558,046
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

How about . . . we make it a point that borrowers can't re-fi on equity that is only there on paper (an appraisal) for the first 5 years of their mortgage?

They can re-fi for better interest, or to buy down points, but to pull cash OUT within the first 5 years (or 7) they can't do.  Period.

 

Jun 17, 2009 06:11 PM #38
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

CHUCK.... . I truly think if we can work on the tax credit & down payment assistance, that it would really help this economy. Thanks for the polite compliment.

JASON..... . this is so true, getting real estate investors into our market, capable ones, that would clean up the inventory and help with the banks losses. And overall?  The gov't does need to hear those in the trenches.  Thanks for the kind words.

MATT S. .... . In regards to your question to Jason... are you talking about making it a tad easier on those for conventional loans?  Because if I am correct, FHA hasn't really changed much, except for the investors wanting a 620 credit score. In most other cases, the credit stuff hasn't changed as much. Just a very small change.  I would really want 600 credit scores across the board, I think this would help a lot. Yes, there are some companies that can still go below 600, but I don't see these companies actually closing these people, not unless your ratios are extremely low and or you have like 20% down. That is not the norm. And Matt... I read your post... excellent job, and thanks.

 

MICHAEL.... . we seem to agree on most topics then. Yes, go ahead and make it a tad harder for seller-funded DPA loans... maybe keeping the ratios inline and having reserves at least. I helped one couple to where they were able to keep $14,000 in their pocket and only spend $1,000.

In regards to programs for foreclosures...  HUD has a $100 down program if you buy a HUD program. Why can't we do the same for regular foreclosures... or something close???  Is HUD only worried about themselves?  thanks for the input.

 

DAWN.... . I see where Lenn is coming from, but I try to keep it real, not hoping, that it's not too late. Yes, late to a certain degree, but that doing something now, can still help. The wishful thinkers? I just don't have time for them.  Let's just roll up ourselves and get down to business. None of this smoke & mirrors that the gov't seems to throw our way. Thanks for your input.

LYN.... . how funny... yes, I watch the news from time to time.. lol  But I would agree, that we need huge media coverage for this to possibly have an affect.  In any case, thanks for the polite compliment.

 

Jun 18, 2009 12:04 AM #39
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
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Matt S - "Jason - Just out of curiousity, what do you feel about opening credit up for non-investors?  Not to the levels once seen before, but a least a little less stringent?"  I'm all for that.  It seems common sense has left lending these days.  I'd also be willing to open up the sub-prime market at LTV's of 75% to 85% tops, full doc only, at rates 2.5% to 3% higher than the best rates the market has to offer.  But that's another post in of itself:)

Jun 18, 2009 01:39 AM #40
Anonymous
Shari Kay Hunter

Jeff: I think you are right on. I nominate you, Dan Hartman, and Jason Sardi to represent us in Washington. I'd step forward myself, but for family constraints. Blame for this crisis is misplaced, in my mind. If we could obtain good data about those in foreclosure, we may be able to influence the solutions that are being offered. Intuitively, I doubt that zero down programs were signigicant. I would like to see more thoughtful analysis put forth by news sources, I think it's better than a year ago, but we are still seeing the general public and even policy makers informed by hearsay and speculation. Get on it, I'm backing you!!! Shari Kay Hunter, your personal loan officer in Minnesota

Jun 18, 2009 05:43 AM #41
Rainmaker
1,431,110
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

The moratorium on foreclosures has actually hurt.  You now do not have enough inventory on the market and people are still setting in homes they cannot afford.  It just put the problem off and did damage in the interim.

Jun 18, 2009 09:31 AM #42
Rainmaker
1,317,476
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I think a real estate mortgage think tank is just what is needed.  Then both the Realtor(r) lobby and the Mortgage Bankers lobby would be very powerful in getting something done.  One thing I have found out in working on many Realtor(r) issues with our local legislature, is that they do NOT understand our business!  By the way while you are at it, it is important that VA allow the Buyer to fee part of the BA fee if the Buyer so chooses.  All other programs including FHA changed the prohibition against the Buyer paying any portion of the BA fee. 

Regarding investors and foreclosures... when it comes to condominium, the investors are actually making it IMPOSSIBLE for the average buyer to be able to purchase a condomium.  What we have experience is that the investors swoop up the condo, do some cosmestics and rent them out!  Now the investor ratio is to high and FHA buyers cannot purchase even though the condo is on the FHA approved list... so this is a significant problem.

Jun 18, 2009 11:40 PM #43
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Jeff Belonger
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PETE.... .  we mostly agree on what we would think would be the basic concepts.  Hence why our gov't is not great at this, because it deals with common sense, not smoke and mirrors.... in my opinion.  thanks

 

TIM.... .  I don't consider that hijacking.  But I will disagree with your first statement, questioning on how the $8,000 being used for the down payment would unlock the market.  You made reference to the payment dropping $43 a month.  I think you missed the whole point here.  Many first time homebuyers don't have the 3.5% required down payment. That is my argument. It's not getting the borrower to qualify, by lowering the payment. It goes back to the fact that the average person is having a hard time saving money in today's economy. And just because of this, in my opinion, it doesn't make them a bad borrower. I can elaborate more on this in another post.

In regards to your second part...  I am sure this already happens when the buyers get seller help. So in reality, this will happen with the credit or without the credit. It would come down to HUD watching over the lenders, and it would come down to us good loan officers educating the borrowers in how to shop correctly... and what to watch for. I already picked up 2 new clients over the weekend that read my blogs, and found out a lie.  Please read : Origination fees... what are they and what to look out for...   Overall, I just view the credit differently than you do, not lowering the borrowers payment, but putting money in their pocket to use as the down payment.  thanks for your feedback.

 

MISSY.... . yes, I knew about Renee's market, just from talking to her and from reading her blogs in the last 8 months.  From talking to her, it's been insane. Hence why I always say that real estate is local. In regards to your market, it's good that you are busy. But it stinks in a way that values are way down. But this is good for the first time homebuyer though, right?  thanks

 

TIM.... . I agree that there are local, state, and federal programs that have been around for decades.  But with these programs, they still follow the same down payment requirements depending on the type of loan program... ie: Conventional, VA, USDA, and FHA. 

About the FHA 100%, if it was allowed, I know it would be open to anyone and not just first time homebuyers. But the problem here is that HUD went out of their way to help kill the seller-funded DPA's and congress killed the 100% FHA program.  But you know what, by not having either one of these programs, it hurts the housing market and adds to the crisis. Now, this is my opinion....but I have my good reasons for this.

Lastly, we both would agree that when the gov't throws money at us or at programs, this doesn't work as much as they would make us believe.  Hence why I decided to write this... we need to get more involved and make the politicians and media aware...  thanks

 

CHRISTOPHER & STEPHANIE.... .  I think many of us would agree that this is one of the best times to buy.  Yes, values are down and rates are/were the lowest... and still very low. But I know of so many other buyers that would be great, if they had the 3.5% down payment.

In regards to the tax credit, I don't think it should be higher... but I do agree that it should be available to all buyers. One of the main reasons is that we, the tax payer, will be paying for this tax credit.

In regards to investors, making it easier for them. I agree with this.. easier and cheaper.   Thanks for your input and feedback.

 

DENNIS.... . I agree... and we need more people to pitch in with more ideas... or to strengthen the ones mentioned.  thanks

JIM.... . I am going to disagree with that statement. In my opinion, it shouldn't matter how cheaply you buy the house, and that you then should have skin in the game. In order to spark this housing market and to get foreclosures off the market, we need to put money in buyer's pockets so they can buy. What's the really big difference that the $8,000 credit can't be used for the down payment.  We are giving the money anyhow, right?  I truly think that we would see a big change in buying power if that money could be used for the down payment also, for the initial down payment.  thanks

 

Jun 19, 2009 08:00 AM #44
Rainmaker
518,702
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Jeff ... I like some of your ideas, and you seem to be focusing on what we can do to clear the REO properties from the market.

Real estate is local, and here in Orange County, CA, we simply don't have enough good homes on the market. REOs are selling quickly with ave time on market of less than 30 days. We need more REO properties to get to the market, so that we Realtors can sell them, make our buyer clients happy, and get the market moving forward again.

Our Orange County housing market is being hurt by too many short listings, which are clogging up our system, taking way too much time for our buyers, and giving our buyers and folks false expectations.

Thanks for this article.

Jun 19, 2009 08:53 AM #45
Rainmaker
518,702
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

I agree with Gene R at other comment here ... that slow down by banks and moratorium on foreclosures here in California is not the best solution.  And it's hurting our real estate sales market.  We do not have enough inventory of homes and property on the market here in Orange County.  Let's get the California foreclosures going, get mortgage investors into home ownership, or bank owners after trustee sales, and get the REOs on the market.

Jun 19, 2009 09:18 AM #46
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Jeff Belonger
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WILLIAM.... .  waiting or not, I just think they were careless in their actions. Just putting programs out there, knowing damn well that it would cost money, but only help the few... at least in my opinion. If you write a blog, please let me know.  thanks

ROLAND..... . I would agree with both statements... and I think many others would agree. 

 

CARLA.... . I would disagree with that.... why?  We can't punish people just because of what happened to the real estate market in regards to values the last 2 1/2 years.  It's my house and if I have decent cash equity, I should be able to get some of it. The problem with some of the past programs was that subprime allowed you to cash-out up to 100% of the value. To me, that's just pure greed on the lenders side.  Some checks and balances should be applied. I think 90% under FHA is a good LTV. And the fact that it's mandatory to wait 12 months, which is a seasoning requirement.  But 5 years?  I think that is too strict....  But thanks for your input.

 

JASON.... . I will agree, that common sense in some cases, has left the ball field. I am still not a big fan with subprime going up to 85%... besides, would you lower the credit scores if you are talking about subprime?  If not, then they would be a better canidate for FHA loans anyhow...  curious, what other requirements would you have for subprime, other than LTV's from 75% to 85%?  DTI ratios and fico scores?  Because these would need to be discussed, not just LTV. In my opinion was those subprime loans even at 85% with a 550 credit score and DTI's of 50%... yes, a 50% fron end ratio.

SHARI.... . thanks for the endoresment and for the vote of confidence. I will need to go look up Dan Hartman though, since I am not familar with him.  But yes, I also believe that 100% financing wasn't the main culprit, unless.... it was subprime 100% financing, which had much lower scores and higher debt-to-income ratios... or those 80/20 no doc loans that carried 13% interest rates on the 2nd.  Just so someone could buy the house... Overall, thanks for the kind words.

 

GENE.... . I am semi confused. I think we need to go back to the fact that real estate is local. Sure, in some areas, inventory is low... in many other cases, inventory is high. So you kind of lost me there. But I will disagree that people are still getting into homes that they can't afford. Could you please define this?  Give some examples of this?  FHA, USDA, and VA are great examples with their checks and balances. I would agree with your statement when we had 100% subprime financing with 580 credit scores and debt-to-income ratios of 50%.... or when you could get a conventional loan with 100% financing, with 55% to 60% back-end ratios.  But when I am doing a FHA loan, the client has 4 months in reserves... 3.5% down, good credit scores, good credit history, has a 35% front ratio... and that their back-end ratio is a 52%... and they their new mortgage payment is only about $200 or less than what they paid in rent... I would then still disagree with your statement.  But I would love to listen in detail what examples that you have.  thanks

 

Jun 19, 2009 03:54 PM #47
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
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JOAN.... . I think many of us would agree that hearing these resolutions from those in the trenches would be a great thing. And maybe I am very tired, but you lost me with the BA stuff, stating that you can do it with FHA, but not with VA... could you elaborate on this?

In regards to condominiums... I hear your frustration... but I will have to agree with those investor guidelines for several reasons. Think about it, if you were a lender, would you lend so freely if the investor concentration was very high?  I value my money... not all investments are sound... and if you have many condos go belly up then, that makes the whole condo association in bigger trouble.  This is something that we are experiencing now... the condo associations budgets, and how in trouble they are or have no reserves.  Just my .02 and opinion, without going into much detail.  thanks for your input and feedback.

 

 

HARRISON... . Thanks for your polite compliments.  But I am not fully aware or up-to-date on the short listings and that they are clogging up the system. 

In regards to this comment that you made...  "We do not have enough inventory of homes and property on the market here in Orange County." 

I am semi confused by that comment. If you don't have much inventory, isn't that a good thing, besides not making an income? Couldn't this mean that homes are selling quickly?  Or are you trying to say that many of the foreclosures take forever to get onto the market, hence why inventory is slow...  please clarify if you wouldn't mind.  thanks and thanks for your feedback.

 

Jun 19, 2009 03:57 PM #48
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Jeff: I don't see any more opening of the market as far as DPA or anything like that. I think the government is finished with the incentives. And I'm o.k. with that. There comes a time where the market needs to start running its course. Yes, my borrowers who had DPA haven't defaulted yet. And they may not. My wife and I had to save and get gifted money to buy our place. And it worked. Every day people are coming to the table with their own funds. Or they're waiting, just like in the old days. Obviously, it would be great news for us in the mortgage business if DPA or other programs existed again. What may lead to a resugence of these types of programs is a healthy economy again. That will happen again perhaps as soon as next year. Another real estate boom is in the cards. Then more people will qualify due to looser underwriting, etc. At that point, hold onto your hat! After all, we live in a boom or bust business. I'm also not sure we ever learn from our past mistakes! Take care.

Jun 20, 2009 03:14 AM #49
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Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Jeff, I have emailed your post to various lawmakers in Maryland asking if they would participate in a roundtable including mortgage lenders, real estate practioners, and lawmakers.  I do hope they read your post and the follow-up post by Matt Stigliano.  Next on my agenda, Dave Stevens who is President of my company and Obama's announced appointee for heading HUD.

Jun 20, 2009 08:48 AM #50
Rainmaker
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Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator

What more can I add? The post and comments are great. We did break this. WE broke it. Why would any of us think for one second the government can fix it? What have they EVER fixed other than air traffic control? And the NAR? Save your fees and join the NRA instead.

That dead old lie that people who can't afford a down payment don't deserve a home is the tiredest, lamest babble around. It's not what they haven't saved that matters it's what they haven't paid in the past that matters. There are hundreds of thousands of people who have not missed payments but only have a couple of thousand dollars saved. People who live in apartments with no tax breaks who can buy a home with PITIA lower than their rent, for example. When I read or hear anyone who truly believes you don't deserve a home if you don't have 10% down (or whatever amount) I want to take them around by the hand and show them the 94% of borrowers who used SELLER FUNDED DPA who never missed a payment.

Stop runaway socialism NOW. Reverse the trend. Let the people fix the problem.

Jun 21, 2009 01:25 AM #51
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Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
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Jeff- From a very selfish standpoint, I list short sales and don't work with foreclosures. Why would I want buyers to be given incentives to buy foreclosures? Those are my short sale competition. Does not make sense.

I do agree with 100% financing. Always have, always will.

I also agree with giving huge incentives to investors as I wrote about in my post, Real Estate- supply and demand. If they would waive the capital gains, and give investors incentives to keep the properties and rent them out- that would be a huge help with getting rid of inventory.

Selfishly speaking- I am having a blast in this market. I am busy, having fun, and closing deals. SO I am not complaining. I think this whole mess needs to work itself out through free markets and time. Katerina

Jun 22, 2009 11:13 AM #52
Rainmaker
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Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Jeff and Jason - I was just curious to hear your opinions on the credit issue as it has been the biggest stumbling block for me in the recent past with clients.  Because lenders are being so cautious, there isn't room for any common sense lending...where lenders would say "ok, so your scores aren't brilliant, but I can see some good signs here...you've done a, b, and c right, so we're going to give you the loan."  It's all so tight that if you don't fit the model of "perfection" they want, lenders will refuse the loan.  There needs to be some common sense in lending.  Like Ken Cook said, just because someone has little cash saved up, doesn't mean they won't make a good borrower.  I say the same with credit.  We all have bumps in the road with credit (well everyone I know does, there are very few perfect people when it comes to credit) and they need to be weighed against the other facts, not just just stuffed in one end of a machine and spit out another.

Jun 22, 2009 02:50 PM #53
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
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PAUL.... . I would agree that we should let the market alone, to rebound on it's own. That would be in an okay world, one that is not really in trouble. But we are truly in trouble. There are now reports that the market is rebounding. I have a problem with that and will write a blog about it tomorrow. The basic reason is timing... we just left spring and just went into summer.  May and June historically have been busy months. Kids now out of school, etc, etc. 

My whole point to this is I truly feel that we need to implement a few things, or we will climb deeper into trouble, especially when we hit the end of the summer and late fall. Just my opinion, but nobody seems to be talking about the writing on the wall. And I don't think we need a healthy economy for seller-funded DPA's to come back... we need programs like this now, not later. Later could very well be to late. As I mentioned, why not tie some of these programs into certain rules. Example.. if you use a seller-funded DPA loan, that it has to be on a foreclosure.  And or that you have to have 2 months of your own reserves. thanks

 

MARGARET.... . I really appreciate that.  Let me know if you get any responses.  I really want to try and get something together, and I won't be able to do any of this by myself. Let me know what the president of your company says. Maybe he has some ties or knows some people, since you all are closer to D.C and such.  thanks

 

KEN.... .  I couldn't agree more with your statement, "That dead old lie that people who can't afford a down payment don't deserve a home is the tiredest, lamest babble around."

It really ticks me off and between the two of us, who have done a lot of FHA loans and those that put hardly anything out of pocket, the majority have done well.  Sure, you will have foreclosures, but this wasn't the problem.  With this current attitude, it will hurt us even more now and later in the near future. Sure, we keep hearing ..  I forgot where I left off, considering I started this reply about 5 hours ago.. lol

Overall, we do need to let the people fix these problems and not the gov't.  thanks for your input.

 

KATERINA... . I will agree with your last statement. That we should allow time so we can work through this crisis.  But I think we need more than time, because of what the gov't has done in recent months and the false hope.  I see other avenues that we can take control to better our economy.

In regards to the short sales vs foreclosures.  I don't think you are being selfish... you just have found a niche and that you are extremely good at, where others just stink at. I also love this kind of market, because it flushes out the bad apples, those loan officers that are barely average. But I am finding out that more of them are hanging onto dear life, lying to consumers just to get a deal or give false hope. I just picked up my 3rd deal in 12 days that was dealing with a previous lender... for various reasons. But the sad part is that I am getting them after the fact, not in the beginning.

Overall, I think many of us would agree that we need some sort of 100% financing, whether it's a program or seller help, or gov't funded in a way. But most of my suggestions up top, aren't going to cost the tax payers any money.  Why can't we start with these?  It just makes me wonder over and over.  Again, thanks for your feedback.

 

MATT.... . I am thinking about doing a blog on this by the end of the week.  I agree and disagree.  The main thing with the credit scores is that it's a barometer of what can be done and what shouldn't.  It's based on a study of the majority of loans that were done with scores less than 600 and less than 620.  The investors are trying to limit risk, that's all.  Yes, it does hurt some that still have decent credit, that fall below these marks....  but they are the minority.  Yes, we need some common sense, but that is not the majority. If you go back in history, those with lower credit scores are typically your higher risk borrowers. 

Overall, I truly understand with what you are saying and would agree to a certain extent. But the fact of the matter is that we need some cut off and not just maybes. Even those cut offs in regards to many subprime mortgages is what got us in trouble, even with little to no money down.  Greed got the best of us there.  Time will tell... but I don't see the credit scores getting better for over 2 years.  We are not experiencing even pricing hits on scores up to 660... yes, 660... rut row...  so it could get worse, if investors keep losing...  thanks  All of this is just my opinion/.02.

 

 

Jun 23, 2009 09:37 AM #54
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Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
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Jeff....I'm all in.  There are more ideas as well.  I'm in for fighting for this. Here's the deal.  There are a myriad of things that the government can do.  The stimulus package equivocates out to each able bodied (and competent) American getting a check for $347,000.  Why not just cut checks to each one?  Oh yeah...inflation.

I'm not all that down with the zero down programs, but with proper overlays, why not?  It's not the skin in the game, its the ability to make money and whether or not the borrower pays creditors back.

Investor stuff....I don't really care.  Let's get more people just buying homes. 

What cracks me up is that Obama is saying that banks need to lend more $$$$.  At the same time he says that they need to show how they can cover all the debts that they have.  If they need to cover the loans they already have, then don't mandate that they make more loans.  You know?  Crazy to say the least.  There are a million more ideas out here.  You have some great ones, but solotions do abound.  I say....GAME ON!

Jun 24, 2009 02:29 AM #55
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Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Jeff - I'm here because you pointed me to this from my post. I see your thoughts and I believe that the real estate market needs to correct itself. However, even with some tax stimulation, it may take a while. I'm not saying fixing it band-aid style but many of my clients (I can only speak from my experiences) that they are planning to purchase homes, now have the incentives to make it happen before the dateline. Clearly, this is a selfish reason.

Sep 16, 2009 12:17 AM #56
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Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
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You know what... I thought we had a government we could rely on to help us through this, now I'm not sure anymore.  I don't even think they are listening to this... and certainly not sure if my letters to them are being heard!

Anyone else writing?!  I'm sure they are getting our mail... how come they don't value our feedback?   I don't know , I want to tune it out now but IT IS OUR TAX MONEY THAT IS BEING SPENT...REBELLIOUSLY by the government!  We must and have to pay attention to this Waste! 

WHAT A WASTE! 

I don't know what to say except I just don't like thinking about it anymore and just take it one day at a time in these days.

Jan 21, 2010 03:16 PM #57
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