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Mortgage Relief Fund is signed, how much more money can they print?

4K views 80 replies 33 participants last post by  wsuwrhr 
#1 ·
Expect inflation to increase and your dollar to be less.
 
#6 ·
"The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009."


WOOT! WOOT! I'm ready to jump back in!!!!!!!!!:)devil
 
#11 ·
So they are going to print more money and encourage people to buy homes in a still down market? That makes no sense to me and seems like they are trying to create ANOTHER bubble.

The economy sucks and you can't just print more money to fix it. That's the whole reason we got into this mess in the first place!
 
#24 ·
when you look at the bill it really is not that bad of a deal for the government. The banks will need to lower the principal and the government will share a good portion of any equity the homeowner will have in the future. the bad part of the bill is all the shit that is on the coat tails along for the ride, but the fannie freddie deal is really not that bad.

Still bailing people out is total BS. It is kind of like a short sale only the risk taker gets to keep the house.
 
#28 ·
Theres some very serious issues with the bailout. First, theres no cap on the cost. It could easily hit almost a trillion dollars. And one that is completely random, is the IRS will now track every credit card transaction. This bill is nothing more than election years politics. The market should have been allowed to do its own stabilization.
 
#34 ·
What exactly is this bill going to do for the person that is current on his mortgage payments?
From the sound of it I should have bought a bigger house that I just can't quite afford. :)hammers:)hammers:)hammers


The only people who will benefit from this are the people that shouldn't have bought to begin with. This is just plain wrong. Thanks again, George.
 
#39 ·
That is what I am saying, I bought a house in San Bernardino that I could afford.

I should have bought a house where I wanted to live, who cares if I couldn't make the payments. The government will take care of me. Where are they getting the money for this again?

Brian
 
#37 ·
too many vacant homes everywhere for market to change , I remember when I bought my house 5 years ago within 24 hours of being placed on the market it had 7 offers on it ,pure luck I think that Iwas actually able to get it.had lost out on 3 others due multiple offers. thats unheard of in todays market
 
#38 ·
too many vacant homes everywhere for market to change , I remember when I bought my house 5 years ago within 24 hours of being placed on the market it had 7 offers on it ,pure luck I think that Iwas actually able to get it.had lost out on 3 others due multiple offers. thats unheard of in todays market
This isn't completely true. I have a client that we have made 6 offers on different places in the Eastvale area of Corona at full price or over with 30% down and we still have not got a home in escrow yet. All of these properies have had 5,10,20 offers on them and one even had 28 offers. Now with that being said, these are homes in the mid to high $300's that 1 1/2 -2 years ago were in the 600's range.
 
#51 ·
Damn i missed out i should have refied my house to the max go out and buy a lt rail,new cat boat and a diesel pusher moho,Oh maybe a new z06 while i was on spending spree then wait for the gov to help pay for it all.Then i would have had some left over for that bitchen rock pool in my backyard.
 
#52 ·
It’s a voluntary program thus far, so we’ll see if the “bailout” amounts to anything.
That’s why Barney Frank is waving his “servicing saber”. He’s basically saying to the servicers - make the loan mods, or you’re gonna get a new set of rules and regs and you ain’t gonna like it.

------------

I’m curious, do you know anybody that has received a loan modification?
Personally, I don’t and I’ve talked to many, many people about it.
 
#72 ·
I have succesfully modified a short term fix. I purchased in 2005 when you could not find a home under the FHA Limits. (I throw that out as now they raise the limit and I could actually by alot more house for what I paid in 2005 as a first time home buyer and have a better loan and payment)
I purchased in 2005 on an 80/20. I agree, now that I have become educated on real estate and mortgages that it was a stupid choice. At the time we needed to move ASAP, so the story goes.. a friend of a friend said why rent when you can buy, yada yada.

Back to the modification. I am forever thankful for people as yourself along with HM mostly and others on this board for the info you have provided that has helped me, most unknowingly.
I realized when the bubble arguments were going on that I may have a problem. I purchase with proof of income upfront. The current payment is affordable however I could not get an fha loan with the 469 purchase price of my house. (Not a McMansion, and the cheapest house I could find that was not in need of work). I was told that I need the 2 years to gain value to get under 100% LTV for better financing. The 25th payment was never discussed and to be honest I was never warned on values being an issue, just that no one could predict the rate at the 2 year time frame for my refi into a long term 30 year fixed rate.

I called my lender in Dec. 06 to ask if they would waive prepayment penalties and refi me into a fixed loan. My first and second are with the same lender.
At that time my value was already appraising at 50k less than what I had paid. I would need to bring 50k to the table.
Ok I am listening to all the RE guys on here and I am realizing this is the start of the bubble burst and I dont have 50k to bring to the table.

The answer to the modification is that I did approach them 4 mos prior to my adjustment. My payment would go from 3k per month after 2 (6 mos adjustments) to 5600 per month. I let them know ahead of time that I could not afford and would walk if they did not modify prior to the adjustment. I was fortunate in that I never paid late, nor had to skip a payment to get them to work with me. The part that isn't so good, is that at the time all they did was extend the rate for 2 years. In 2009 I will be in the same predictament but a bit worse as I will be 180k minimum underwater. I still can not refi my loan.
I realize the bitterness with the long time home owners. I get it. I don't agree with government handouts etc. I dont think that our tax dollars should help me get a 30 yr fixed loan. I do however think the lenders that gave 100% financing with income verification upfront need to take responsibility as I do that they knew I could not afford the adjusted payment and I knew I could not, so if the bank was banking on equity if I defaulted, why would I not trust that equity would get me into fha loan?

Isnt it ironic that in 2005 you couldnt find a starter home under 417k and get fha. Today I could find tons of better houses for that and could have an fha loan on a 300k house and less to be honest and what does the government do, they raise the limit now that it isnt needed for first time home buyers.

I would be happy if someone would fix my 1st and 2nd into a 30 year fixed loan. I am not looking for a handout nor a write down. I just need the 1st and 2nd to be converted into one 30 year fixed. I realistically can not traditionally refi into that loan because of values. Many reasons for the predicament lots of us find ourselves.

At the end of the day I got a modification or 2 year bandaid. At the 4 yr mark if I dont get a long term fix I have one of 2 choices.
Pay almost 6k per month to live in a 18sq ft house and not starve my children so I can pay it.
Rent a 2500 sq ft same neighborhood for 2k per month.
What would you do?

I can't take back being stupid for the purchase in 2005.

Sorry so long winded C-2 the short answer is yes.
 
#53 ·
From my understanding, this bill will help out about 5-10% of those in trouble at most (CNBC).

Basically this bill is similar to a VA loan...The Government will back loans in case of default. If you don't qualify for the loan amount, you don't qualify for this bill... This bill only free's up banks, so they can make more loan to quailfied buyers (20% down...etc...). It is targeted to people who have adjustable loans that need to be converted to a fixed loan, but no longer have the equity in the home for a conventional loan (20% equity).

I have not heard of the Government printing money.:):)punch:)hand

PS...I am not a broker nor a Real Estate...Just an old fashion engineer:p
 
#54 ·
So maybe we should just all call our lenders and ask them to redo our loans.

I owe less than my house is worth, think they would refi it for about a 100 grand less? I mean hey! Why not??
 
#57 ·
Havasu new Impact Fee on building New Homes

The leeway time between the passing of the ordinance and its implementation was supposed to help increase the number of building permits pulled. Schulz, himself, had predicted a rush of permits being handed out before the Aug. 1 deadline. This just did not happen.

According to Schulz, only three building permits were handed out for single-family homes in the month of June. The 2005 number of permits for single-family homes averaged about 75 per month, he said. As of July 1, only 104 permits for single-family homes have been issued for 2008, according to the city Development Services Department.

The decline in new home construction can be linked to the large number and plummeting prices of existing homes on the market. In June, the Lake Havasu Association of Realtors listed the number of total active listings at 2,732 homes, with 873 vacant land lots included. And 1,479 of the listings were residential.

The average selling price of the residential homes was down to $267,189, almost $60,000 from the June 2007 average price of $325,655.

In addition to the glut of existing homes on the market, the newly created impact fee will further hinder new home construction, some builders contend.

The cap for impact fees on new construction of a single-family residential home is $6,000. The city council worked to reduce that amount. The fee for a single-family home for 2008 would be $2,213, with multi-family homes incurring a fee of $2,145. These figures will gradually go up 25 percent each of the next two years. A single-family home would have a fee of $4,423 in 2010.

Meanwhile, Workforce Arizona recorded a loss of 700 construction jobs in Kingman and Lake Havasu City for the month of June. Construction jobs have declined in both cities for 10 straight months. Schulz said construction workers have to look elsewhere for work, which could cause many families to leave the city, further damaging the real estate market in the city.
 
#59 ·
The leeway time between the passing of the ordinance and its implementation was supposed to help increase the number of building permits pulled. Schulz, himself, had predicted a rush of permits being handed out before the Aug. 1 deadline. This just did not happen.

According to Schulz, only three building permits were handed out for single-family homes in the month of June. The 2005 number of permits for single-family homes averaged about 75 per month, he said. As of July 1, only 104 permits for single-family homes have been issued for 2008, according to the city Development Services Department.

The decline in new home construction can be linked to the large number and plummeting prices of existing homes on the market. In June, the Lake Havasu Association of Realtors listed the number of total active listings at 2,732 homes, with 873 vacant land lots included. And 1,479 of the listings were residential.

The average selling price of the residential homes was down to $267,189, almost $60,000 from the June 2007 average price of $325,655.

In addition to the glut of existing homes on the market, the newly created impact fee will further hinder new home construction, some builders contend.

The cap for impact fees on new construction of a single-family residential home is $6,000. The city council worked to reduce that amount. The fee for a single-family home for 2008 would be $2,213, with multi-family homes incurring a fee of $2,145. These figures will gradually go up 25 percent each of the next two years. A single-family home would have a fee of $4,423 in 2010.

Meanwhile, Workforce Arizona recorded a loss of 700 construction jobs in Kingman and Lake Havasu City for the month of June. Construction jobs have declined in both cities for 10 straight months. Schulz said construction workers have to look elsewhere for work, which could cause many families to leave the city, further damaging the real estate market in the city.

Almost time to buy something.
 
#58 ·
Yes Bush's approval rating is very low, but look at congress with the dims in control. 9% approval. Just before the revolutionary war the King had an approval of about 14% here in the colonies. Sounds to me like we need another revolution.

Couple of sayings that fit:

Democrats = You can't fix stupid.

All hope is lost when the guberment can buy people with their own money.


For the record Bush is not a conservative and I can not stand that he doesn't veto all of this spending. He is also plain wrong about the illegals.
 
#62 ·
Still dont have conditions on these loans yet.

Here's a better artical straight from NAR.


This morning President Bush signed the "Housing and Economic Recovery Act of 2008." For the past several years, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® have aggressively lobbied for Congress to pass numerous provisions found in this historic bill. Many of you participated in these efforts by communicating with your Members of Congress.

Thank you to all of you who responded to these Calls-for-Action. Your efforts have made a difference. This federal housing bill is a significant move in the right direction for California homeowners. It will aid in stabilizing our economy and help stem foreclosures, while also providing support to first-time homeowners.

The legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California, by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. The bill also will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas.

The bill permanently increases the conforming loan limit to $625,500. C.A.R. has long advocated for higher conforming loan limits. In February, the Economic Stimulus Act of 2008 was signed, temporarily raising the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008.

Although we would have liked Congress to make permanent the current $729,750 loan limit, C.A.R. is pleased with the new permanent loan limit of $625,500. It will allow California homeowners to refinance their loans into safe affordable loan products and allow first-time home buyers to enter the market.

The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.


C.A.R. also supports the following bill provisions:
  • A temporary increase in mortgage revenue bonds to refinance subprime mortgages.
  • New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
  • First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
  • Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
  • Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
  • The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
  • The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.
Other provisions in the legislation:
  • The Treasury Department’s proposal to create a federal backstop program to insure the financial well-being of Fannie Mae and Freddie Mac.
  • The FHA’s inability to insure loans that utilize a seller-funded down-payment assistance program. Down-payment assistance from family, employers and other nonprofits is still allowed.
  • The Community Development Block Grant Programs’ $4 billion allotment for communities to purchase and refurbish foreclosed homes.
C.A.R. wishes to thank those California Members of Congress who supported the bill:

Senator Barbara Boxer, Senator Diane Feinstein, and Representatives Joe Baca, Xavier Becerra, Howard Berman, Mary Bono Mack, Ken Calvert, John Campbell, Lois Capps, Dennis Cardoza, Jim Costa, Susan Davis, David Dreier, Anna Esho, Sam Farr, Bob Filner, Elton Gallegly, Jane Harman, Mike Honda, Duncan Hunter, Barbara Lee, Jerry Lewis, Zoe Lofgren, Dan Lungren, Doris Matsui, Howard "Buck" McKeon, Jerry McNerney, Gary Miller, George Miller, Grace Napolitano, Nancy Pelosi, Laura Richardson, Lucille Roybal-Allard, Linda Sanchez, Loretta Sanchez, Adam Schiff, Brad Sherman, Hilda Solis, Jackie Speier, Pete Stark, Ellen Tausher, Mike Thompson, Maxine Waters, Diane Watson, Henry Waxman and Lynn Woolsey.

Thank you everyone for your efforts in support of this bill!
 
#74 ·
Thanks for the response pb123. Can I ask who that was with? PM me if you like.

Don't pay attention to all the haters. Sometimes risks are required to pursue the American dream of either owning your own business, or buying a house. And sometimes, things don't turn out good.

And I'm sure there are many, many people on this board who, despite their denials, are only a broken ankle away from insolvency. :p
 
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