Another Bank Has To Pay Up To Fannie & Freddie!

UBS Americas Inc. has agreed to 885 million settlement over bad mortgage bonds sold to Fannie and Freddie during the subprime boom a few years back.

They are the 3rd, after General Electric and Citigroup Inc, to settle with FHFA over bad bonds sold to Fannie and Freddie.

Again, GOOD, I say! Fannie and Freddie was bailed out by our government back in 2008. We, the taxpayers, are ultimately taking any loss. So, if they get screwed, we get screwed.

470 million is going to Freddie and 415 million going to Fannie. Just a drop in the bucket. But the more drops in that bucket, the fuller it will be!

Should Sellers Worry About Rising Interest Rates and Increasing Inventory?

I'd say Heck Yes! Well, our inventory is still ridiculously low for what we consider 'normal, healthy' inventory numbers but with the rampant gouging of home buyers the first 6 months of 2013, I'd say give the sellers a little bit to worry about so the astronomical increase in pricing drops down to a more 'normal, healthy' appreciation.

If you're a home owner considering selling, yes, you should worry a little bit. Not tremendously, but don't put your head in the sand and say 'What, Me Worry?' Be educated, cautious, and careful.

The market is making yet another correction. Be aware of it. Make sure you are looking at the latest comparable sales when pricing your home for sale. Pay extra special attention to your current competition. That competitions number of days on market and price reductions in your neighborhood.

Something that should always be brought to a sellers attention, well until the first 1/2 of this year where a seller could toss it on the market and get multiple offers and all cash investor offers too!

Investors are finally disappearing from the market. Good for buyers, not as plentiful of offers for sellers.

Don't lose sleep over it, but don't be stupid with your list price. 

May Be Able To Get FHA Loan in Non Approved Condo Complex....Maybe

Any FHA buyer that was looking for a condo or townhouse in the last couple of years has really struggled. More and more condo complexes lost their FHA certification. And, that made it extremely hard for a home buyer and much easier for an all cash investor to buy the units for sale.

Some buyers were able to bump up to 5% conventional financing. But even then, not all complexes would allow a 95% LTV due to other underlying concerns. Not enough in reserves, too high of a rental to owner-occupied ratio.

But, FHA has proposed a 'Workaround' to some of the problems with re-certification for FHA approval on a condo complex.

The National Housing Act regarding 'transient' , or short-term rental of units, language in the certification has created part of this problem. And, FHA is considering a solution to this dilemma. The HOA boards can either amend their CC& R's, an extremely costly and time consuming endeavor, or provide a statement that confirms there are 'No units in the project currently rented for less than 30 days and/or pursuant to the lessor providing any services normally associated with a hotel'

Now, not saying that will correct every situation by far. As, with any one group or person, no one really likes being told what they have to do. But, FHA was meant to help people get into homes. Their certification, and re-certification, process has been hindering a lot of the potential condo home buyers...the ones that FHA was set up to help....so here's to hoping this is a step in the right direction of re-certifying local complexes for FHA buyers!

Just What is Full Recovery To You?

The article I read this morning that prompted this post was "Five More Markets Reach Full Recovery in May"

Well, then it continued to talk about the recession. And, which parts of the country have reached full recovery, which have rebounded more than 200% since the 'recession'.

Okay, in 2005, 2006 house prices were ridiculous. That's it, I'm saying it....out loud! A townhouse was over 600k, a single family home was 800 +. Really? That was crazy. I bought then. (I'm my own worst client ~ I see it, I want it, I buy it)

So then the market crashed. We knew it would, just not to the extent that it did. But, even though a lot of people lost their homes, or people chose to walk away, prices certainly became more reasonable. The average double-income, hard working blue collar people could actually buy a home.

Well, it is what it is, we have been working through all the underwater homeowners, the short-sale, the foreclosures. So, of course, we have nothing to do but RECOVER!

I'll stop spewing and ask a question instead. What is full recovery to you? Do you think home prices, right now, should be where they were 6-7 years ago? Or do you think we should just start with some normal appreciation, slow progress to higher prices. Slow progress so that we can continue to allow the possibility of home ownership to the people that may not make 200k per year, the ones that between the two bread-winners make significantly less?

I believe everyone that works hard, saves their pennies and are genuinely good people deserve the chance at home ownership. But, again, where does this recovery have to end up to have reached full in every market?

When Will They Learn???

Really, I can't believe I even read this today. Mortgage broker giving bonus' to their loan officers if they convinced the borrowers to take a higher interest rate loan. I'm just appalled.....disgusted, and so glad they are getting their 'due'! The CFPB sued the heck out of them!

I really don't understand how someone can think they are above the law? And, how they are so willing to hurt someone's livelihood just to make a few bucks.

Yep, it really pisses me off!

Brand new client, first time home buyer, came with his own lender. I spoke with lender several times, seems to be on the ball, good staff, very responsive to calls and e-mails. The buyer called me and said the lender offered him two different interest rates, only an 1/8% difference, and if he took the higher rate the lender could give him 2500 towards his closing costs. 

So, in the above instance, is the lender getting a bonus? I honestly don't know. But, the buyer was smart enough to ask my opinion...yes, I'm full of opinions. I told the buyer what I know. If the mortgage broker gives out a higher rate than what buyer qualifies for, he makes more money. Of course it costs the buyer more money in the long run too. But, as long as it's discussed with the buyer and he makes an informed decision...I'm okay with that. 

However, if the buyers are just being shoved into higher rates with some B.S. reason....I'm sooooo not OK with that! 

My buyer, after the two of us put our heads together and did the math, 

chose the lower rate....I'm so proud of him......

MLS Stats for Santa Clarita Valley July 19, 2013

Interest rates are up, inventory is up.....yep. Sellers need to be more cautious with their listing pricing.

Again, I include Acton and Agua Dulce in these stats. Along with Canyon Country, Saugus, Newhall, Valencia, Stevenson Ranch, and Castaic.

ACTIVE:

440 Active Listings. That's 20% more than just a month ago
Only 37 are Short-Sales
Only 17 are REO's

PENDING/BACK-UP Status:

724. Almost 100 less than a month ago. Yep, weeding thru the last of the Short-Sales...hopefully.
302 of those are Short-Sales
33 are REO's

SOLD in the last 30 days:

354. That's a smidgen more than last month.
75 were Short-Sales
only 13 were REO's.

One thing I love about Real Estate, it is ever changing. You've got to be in it for the long haul!

I'm adding a link here to an article about rising rates and historically what it's done to housing:

What Does History Say About Rising Rates?

It's worth the read!

Get Your Head Out of You-Know-Where and Buy A House!

Great story to share! We've been dealing with multiple offers all this year, right? Crazy, over list price, no appraisal contingency, offers. Any agent working with buyers under 600k knows these experiences.

Well, it's stalled for sure right now. I expected it to stall this summer and it certainly has. What with increase in interest rates and growth of inventory, it was bound to happen.

Now, I'm not saying that there is any bursting of any bubble...I'm saying if you were tired of multiple offers as a buyer? Get your butt out there and write an offer! You might be surprised.

Awesome first time buyers just got accepted on their first offer! First one written, first one accepted! They wrote strong, clean, drafted a letter to the sellers. Did everything right. And, I just got the call that they are being accepted!

Shocking to buyers, listing agent, and myself that they were the only offer. Two others said they were going to but didn't. Were those other buyers thinking something better was going to come along? That there was 'greener grass' to be found? Quite possibly.

But, when you fall in love with a home, and it just feels right? Don't go looking for greener. And, this home? AWESOME!! Fits all their needs, great location, nice amenities! I told them either they prayed like crazy, got extremely lucky, or this is just the house they were meant to raise their kids in!

So excited for them!