Blogging Broker

Foreclosures: Prime Borrowers Are The Latest Victims.

Prime Borrowers = people like you and me.

I have one client who, until recently had excellent credit, and lives in a  3000+ sq. ft. — 5 bd. / 3 ba–  home, which will soon be the property of the bank.

His retail business hasn’t just slowed, it’s fallen off the cliff.  The retail mall he is in is becoming a ghost town.  He has days when the cash register does not even ring.

He asked me to sell a small (around 800 sq. ft) 2 bedroom 1 bath rental that he owns free and clear and I was able to convince him to keep it.

He has taken my advice and is currently renovating the property and preparing to move into it.  Its a HUGE step down for him but I told him that when he’s done he will have the envy of many a man in Fresno (including me);  he will be living in a home he can call his own which places him among a small minority.

He isnt going to have those $3000.00 a month payments to make. HOW SWEET IS THAT!

Back in April I called: FHA – THE NEW SUPRIME LENDER

Now I’m not alone

Toll Brothers Inc. Chief Executive Officer Robert Toll said. “Yesterday’s subprime is today’s FHA,”

It’s crazy!

It’s OBSCENE!

A buyer puts in an offer for quarter of a million dollar home, puts up $8750.00 and asks the seller (more often than not: A BANK) to pay the closing costs. Closes on the the home then gets a $8,000 tax credit.
Assuming you have the credit and income, buying a $250,000 home today is almost without risk and can be done almost entirely using OPM (other people’s money)

BUYER HAS NO SKIN IN THE GAME ON A QUARTER OF MILLION DOLLAR HOME!!

THIS MAY BE GOOD NEWS FOR BUYERS, BUT IS IT REALLY GOOD FOR AMERICA???

Associated Press Interactive: AP Economic Stress Index.

Interesting Article:

Denver-based UDR is offering renewing tenants a flat-screen TV, new carpet, kitchen upgrade or, $300 in cash.

READ MORE HERE:

Landlords Offer Renters Incentives to Stay Put – WSJ.com.

Look at the Foreclosure vs New Home Starts chart — TRULY A SICK HOUSING MARKET.

The Worst September For Home Sales Since 1981.

Keep in mind that about 2/3 of the sales recently have been foreclosures. In a normal market those homes sales would represent sellers that are either making a lateral move, moving up, or downsizing.  In this market it simply means that many people have lost their homes and are doing – who knows what: moving into apts, moving in with relatives, renting another home, or going into the streets.

This is not good folks.

Senators agree to extend homebuyer tax credit

Personally, I think the govt should do away with this program.  I also think they should raise minimum FHA down payment requirements to 10%.  Our government punishes savers and rewards the profligates.  They should raise the interest rates so that prudent savers receive a return on their investment.  Somewhere around 8 to 10 percent seems reasonable to me.

Lots of info here.  You will find Fresno stats as well.

AS SOME TOP METRO FORECLOSURE ACTIVITY RATES DECREASE, NEW FORECLOSURE HOT SPOTS EMERGE IN Q3 2009.

Oh, and  — BTW – I could use some year end business.

5 Charged With Torturing Home Loan Agents – KTLA.

Interesting story.  People are pretty fed up.  I am confident that much of the Loan Mod industry it pure scam.  Be careful out there.

Home prices fall 0.3% in August, FHFA says – MarketWatch.