A Beverly Hills Realtor take on the housing numbers. I agree completely.
Friday and sunshine again and actually a little warmer.
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Close to 70 downtown. It says:
- Tonight: Mainly clear skies. Low 44F. Winds light and variable.
- Tomorrow: Sunshine and clouds mixed. High 63F. Winds S at 5 to 10 mph.
- Tomorrow night: Mainly cloudy. Low 46F. Winds light and variable.
- Saturday: Partly cloudy skies. High 68F. Winds NNW at 5 to 10 mph.
- Sunday: Partly cloudy. Highs in the upper 60s and lows in the upper 40s.
- Monday: Sunny. Highs in the low 70s and lows in the low 50s.
Work has begun covering the Hollywood Sign: It doesn't say Hollyweed; it says, save the pass. Golf from Pebble Beach continues today. We have some real estate recovery news, or not from First Tuesday.
Brokers and agents working listings know market reality is a far less rosy picture than painted by reports of rising (phantom) median sales prices. The few brokers listing REOs are seeing action. Those listings have become fewer, but will rise dramatically in the coming months. Just where is that real estate recovery the media is always talking about?
In a stable market, real estate ownership flows from seller to buyer, creating business opportunities for real estate agents and movement necessary to have an economy. This sales process is currently held hostage by institutional lenders who recognize that their so-called "solvency" is based on the over-inflated value of their assets (loans secured by underwater homes and unsold REO inventory). The longer lenders can avoid marking these loans down to market value, the longer they remain "solvent."
Brokers, agents and homeowners must go over lenders' heads and appeal to political bosses for any of the following corrective measures to occur:
- Lenders must make meaningful, permanent loan modifications at reduced fixed-interest rates to allow homeowners with LTVs less than 125% to keep their homes.
- Congress must give bankruptcy court judges the ability to cramdown to market value the principal balances of loans with LTVs in excess of 125%.
- Lenders must process their foreclosures immediately on 90-day delinquency, move the resulting REO properties into the hands of buyer-occupants and report their losses.
In the latest February issue of fresh articles:
- a critique of the Congressional failure to allow cramdowns;
- an analysis of lenders' reluctance to renegotiate loans;
- a look at the due diligence obligations of a mortgage loan broker in trust deed note sales; and
- an update of the mortgage loan broker RESPA-controlled endorsement requirements.
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That'll do it for today...You be safe; as always we remind you to Count Your Blessings!z