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Archive for December, 2009

Sneaky Obama bails out Fannie/Freddie again! (Thank you Taxpayers!!)

Posted by Dwight Mathews on December 29, 2009

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Before It’s News :: Sneaky obama bails out Fannie/Freddie again! (Thank you Taxpayers!!).

In case you haven’t heard about this, do yourself a favor and read all about it.   There’s a method to their madness here that most tax payer’s will never find out about.   The Treasury and Federal Reserve can’t under any circumstances allow Fannie & Freddie to fail.  The Global repercussions would be devastating to say the least.

Higher Taxes, Inflation and Interest rates are right around the corner.  Investing in Real Estate has always been the best protector of wealth throughout history.

Call me for a personal valuation and private one on one free consultation.

Matt Mathews/Exclusive Buyers Agency-Retirement Advisor-Investment Specialist  909.790.8196

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NEW MOVE BY TREASURY OPENS DOORS FOR SHORT SALE DEALS!

Posted by Dwight Mathews on December 29, 2009

The Treasury Department is currently close to finalizing a more enticing incentive program for lenders and servicer’s to rely more on Short Sales opposed to Foreclosures.   The result of course is less loss to the lender.

That program was unveiled in May as part of the Obama administration’s Home Modification Program, which, up to this point has failed miserably.  According to the Treasury, only 12 percent have received refinances.  The sad part is the fact that most of those folks who did get help are now re-defaulting on their loans.  Throw in an avalanche of repossessed-Bank owned homes (shadow inventory) which some analysts estimate could rise as high as 7 million units and you have a compelling case for a new housing crash that could drive home prices down further.

What they are trying to do is move some of these foreclosures in the pipeline, and bring them to a resolution before foreclosure happens.   Twelve percent of these loans being modified isn’t enough to clean up the problem.

NO KIDDING!!  As long as the Banks and lenders are in control of the process and can choose which is best for their bottom line-NO $ incentive is going to solve the problem.

Under the upcoming Treasury plan, as much as $10 billion of government funds dedicated for loan modifications will be used to give lender catch-up payments, to ease their fears that property values could continue to fall.  One proposal being considered is to offer lenders $1000. for going along with a short sale, and the same amount for deed-in-lieu transactions with similar results.  Borrowers also would be in line for incentives-possibly $1500. in closing fees for agreeing to a short sale or deed-in-lieu.  Second lien holders could receive nearly as much – $1000. – for signing away any claims in those sales, the Treasury said.

SUMMARY OPINION:

This plan, like many other desperation band aid fixes will have absolutely no effect in stabilizing the Real Estate market unless they force the Banks and lenders to accept this program.  If they did, you would see inventory levels drop dramatically because of all the New Buyers and Investors who would enter the market.    Quite frankly, I find it hard to  keep up with all the new laws, rules and regulations that have been put into place over the past several years.   In the best interest of my clients however, I must.  The Real Estate market will eventually work itself out in time and we will once again begin to see a normal market.   In the meantime, keep making offers.  The Greatest Buying opportunity in history won’t be around forever you know.

Hire One For Your Side! Email me at READVISOR @ Verizon.net and request a private one on one Free consultation.

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BIG JUMP IN HOME SALES 3Q 09!

Posted by Dwight Mathews on December 23, 2009

Dear Matt,  You said wait-don’t buy yet but I just read in the paper this morning that home sales went up again.  What should we do now?  Have you changed your mind? -Were you wrong in telling us to wait until next year?

No!  Not at all.  As a matter of fact, the housing market is still weak on several fronts, and if not for government intervention (First time home buyers tax credit), prices would have dropped further this year.  Any price increases you may have seen are superficial at best.  Please let me explain further.

Serious delinquencies among U.S. Prime mortgages – those made to the most credit-worthy borrowers-were seriously delinquent in the third quarter.  That was more than double the year ago quarter and up nearly 20 percent from the 2009 second quarter.  (see my previous post-Looming double bubble).  Combine those facts with over a million Bank owned properties (Shadow Inventory), yet to come on the market and you have a compelling case to be a patient savvy buyer.

In my opinion;  The first quarter of 2010 will be a turning point for the market.  Be advise however, that regulatory changes could come with the approval of pending legislation, affecting everything from down payment requrements, FICO scores, insurance premiums, limits on certain types of buildings, dollar limits on costs that can be paid by seller.  Virtually all of these possible changes are due to the fact that over 28% of all loan modifications are recurring defaults and approximately 24% of all new home purchases made starting in 2008 under the Tax Credit program are already delinquent and in foreclosure.

The bottom line is!  If you have excellent credit, a steady job and a sizable down payment,  you are in control and the banks are lending.  If you don’t meet that criteria,  the opportunity to buy a home is still within reach.  It just takes a little more creativity and determination to make it happen.

For a Private One on One Consultation and a Free Profile valuation please call my office or email me with your request.

“I’m always here to help-Exclusively on your side”



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