The bank's loss is your gain. Call for information on this 3BR 2BA single family home in Mission Viejo for only $325,000!!! This home sold for $529,000 2 years ago.
...............................................
Kristin Devlin
949.350.3771
BAnkProperty
Wednesday, November 19, 2008
Tuesday, November 11, 2008
NEW FHA LIMITS ANNOUNCED for 2009
Actually there are three sets of limits, a limit for homes in lower cost areas (the “floor”), limits in “higher-cost” areas and limits for areas outside the continental United States: The limits look like this:Floor
___One-Unit — $271,050___Two-Unit – $347,000___Three-Unit — $419,400___Four-Unit — $521,250
Higher-Cost Areas
___One-Unit — $625,500___Two-Unit — $800,775___Three-Unit — $967,950___Four-Unit — $1,202,925
Alaska, Guam, Hawaii and the Virgin Islands
___One-Unit — $938,250___Two-Unit — $1,201,150___Three-Unit — $1,451,925___Four-Unit — $1,804,375
The FHA loan limits are related to the conventional loan limit which is announced each year by Federal Housing Finance Agency. For 2009 the conventional loan limit will be $417,000, unchanged from 2008.
Which FHA loan limit applies to a property you want to finance or refinance? To answer that question check with a lender. Do not go house hunting until you’re certain which loan limit applies in your situation.
It’s important to check with lenders because the definition of a “high cost” area can change. That is, lenders in a lower-cost area can appeal to HUD to be redefined as a “high cost” housing area and thus qualify for larger FHA loans.
HUD does have an FHA loan limits page online, however borrowers will get far more information from lenders.
___One-Unit — $271,050___Two-Unit – $347,000___Three-Unit — $419,400___Four-Unit — $521,250
Higher-Cost Areas
___One-Unit — $625,500___Two-Unit — $800,775___Three-Unit — $967,950___Four-Unit — $1,202,925
Alaska, Guam, Hawaii and the Virgin Islands
___One-Unit — $938,250___Two-Unit — $1,201,150___Three-Unit — $1,451,925___Four-Unit — $1,804,375
The FHA loan limits are related to the conventional loan limit which is announced each year by Federal Housing Finance Agency. For 2009 the conventional loan limit will be $417,000, unchanged from 2008.
Which FHA loan limit applies to a property you want to finance or refinance? To answer that question check with a lender. Do not go house hunting until you’re certain which loan limit applies in your situation.
It’s important to check with lenders because the definition of a “high cost” area can change. That is, lenders in a lower-cost area can appeal to HUD to be redefined as a “high cost” housing area and thus qualify for larger FHA loans.
HUD does have an FHA loan limits page online, however borrowers will get far more information from lenders.
Thursday, October 30, 2008
Government near home loan bailout
The government plan considers using funds from the bailout to lower interest rates for troubled homeowners.
The government is considering a plan that would help around 3 million homeowners avoid foreclosure, sources briefed on the matter said.
A final deal had not been reached as of Wednesday afternoon and negotiations could still fall apart, but government agencies were contemplating using around $50 billion from the recently passed bailout of the financial industry to guarantee about $500 billion in mortgages.
The plan could include loan modifications that would lower interest rates for a five-year period, according to two people briefed on the plan, who asked not to be identified because details were still being worked out and the plan was not yet public.
The plan would be the most aggressive effort yet to limit damages from the U.S. housing recession, which has shaken global credit markets.
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
The government's program would be run by the Federal Deposit Insurance Corp. The agency's chairman, Sheila Bair, said last week she was working "closely and creatively" with the Treasury Department on such a plan, but revealed few details.
Andrew Gray, an FDIC spokesman, said it would be "premature to speculate about any final framework or parameters of a potential program."
Treasury Department spokeswoman Jennifer Zuccarelli called details of the loan modification plan "simply inaccurate." She said the Bush administration "is looking at ways to reduce foreclosures, and that process is ongoing," but has not decided on a final approach.
Criticism growing
Borrower frustration is growing over the government's existing assistance programs, which critics say have been too slow and small in scope to have much impact on soaring foreclosures.
On Wednesday, about 100 demonstrators marched in front of the headquarters of Fannie Mae, and forced a mid-afternoon meeting with the company's chief executive, Herbert Allison.
Some held signs that read "Restructure our loans now," "Fannie Mae destroys lives" and "Foreclose on Fannie Mae."
Bruce Marks, chief executive of the Boston-based Neighborhood Assistance Corp. of America, called on Fannie Mae to adopt a program similar to the one the FDIC put in place at failed IndyMac Bank of Pasadena, Calif. Borrowers there are getting interest rates of about 3 percent for five years.
After the meeting, which included Allison and other top managers, company spokeswoman Amy Bonitatibus said "we agreed to continue to meet with them and work together on foreclosure prevention." Allison and other top executives
Over the past 10 weeks, Fannie Mae says it has received more than 40,000 defaulting loans and stopped 80 percent of them from going into foreclosure.
After meeting with Allison, Marks said the chief executive "understands the issue of making these mortgages affordable over the long term."
Last month, the government seized control Fannie Mae and Freddie Mac the two biggest U.S. mortgage finance companies, with a rescue plan that could require the Treasury Department to inject as much as $100 billion into each to keep them afloat.
It was unclear Wednesday what role Fannie and Freddie would play in the government's sweeping plan to help millions of American homeowners. But lawmakers on Capitol Hill want the companies to take a more aggressive approach.
Sen. Christopher Dodd, D-Conn., the chairman of the Senate Banking Committee said in a statement that "federal agencies and financial institutions must do more to modify the mortgages they hold in order to stop foreclosures and help families keep their homes."
By guaranteeing millions of mortgages, the government could help restore confidence in the market for securities backed by mortgage loans. That was where the global credit crisis started, leading to this month's dramatic stock market plunge.
As a surprising number of homeowners began defaulting on their loans, investors could no longer put a value on the securities which were backed by pools of mortgages. So trading of these securities froze, sending shock waves through the financial industry.
Quote of the Day
October 30, 2008
Three Things You Must Know to Attract Success
The government is considering a plan that would help around 3 million homeowners avoid foreclosure, sources briefed on the matter said.
A final deal had not been reached as of Wednesday afternoon and negotiations could still fall apart, but government agencies were contemplating using around $50 billion from the recently passed bailout of the financial industry to guarantee about $500 billion in mortgages.
The plan could include loan modifications that would lower interest rates for a five-year period, according to two people briefed on the plan, who asked not to be identified because details were still being worked out and the plan was not yet public.
The plan would be the most aggressive effort yet to limit damages from the U.S. housing recession, which has shaken global credit markets.
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
The government's program would be run by the Federal Deposit Insurance Corp. The agency's chairman, Sheila Bair, said last week she was working "closely and creatively" with the Treasury Department on such a plan, but revealed few details.
Andrew Gray, an FDIC spokesman, said it would be "premature to speculate about any final framework or parameters of a potential program."
Treasury Department spokeswoman Jennifer Zuccarelli called details of the loan modification plan "simply inaccurate." She said the Bush administration "is looking at ways to reduce foreclosures, and that process is ongoing," but has not decided on a final approach.
Criticism growing
Borrower frustration is growing over the government's existing assistance programs, which critics say have been too slow and small in scope to have much impact on soaring foreclosures.
On Wednesday, about 100 demonstrators marched in front of the headquarters of Fannie Mae, and forced a mid-afternoon meeting with the company's chief executive, Herbert Allison.
Some held signs that read "Restructure our loans now," "Fannie Mae destroys lives" and "Foreclose on Fannie Mae."
Bruce Marks, chief executive of the Boston-based Neighborhood Assistance Corp. of America, called on Fannie Mae to adopt a program similar to the one the FDIC put in place at failed IndyMac Bank of Pasadena, Calif. Borrowers there are getting interest rates of about 3 percent for five years.
After the meeting, which included Allison and other top managers, company spokeswoman Amy Bonitatibus said "we agreed to continue to meet with them and work together on foreclosure prevention." Allison and other top executives
Over the past 10 weeks, Fannie Mae says it has received more than 40,000 defaulting loans and stopped 80 percent of them from going into foreclosure.
After meeting with Allison, Marks said the chief executive "understands the issue of making these mortgages affordable over the long term."
Last month, the government seized control Fannie Mae and Freddie Mac the two biggest U.S. mortgage finance companies, with a rescue plan that could require the Treasury Department to inject as much as $100 billion into each to keep them afloat.
It was unclear Wednesday what role Fannie and Freddie would play in the government's sweeping plan to help millions of American homeowners. But lawmakers on Capitol Hill want the companies to take a more aggressive approach.
Sen. Christopher Dodd, D-Conn., the chairman of the Senate Banking Committee said in a statement that "federal agencies and financial institutions must do more to modify the mortgages they hold in order to stop foreclosures and help families keep their homes."
By guaranteeing millions of mortgages, the government could help restore confidence in the market for securities backed by mortgage loans. That was where the global credit crisis started, leading to this month's dramatic stock market plunge.
As a surprising number of homeowners began defaulting on their loans, investors could no longer put a value on the securities which were backed by pools of mortgages. So trading of these securities froze, sending shock waves through the financial industry.
Quote of the Day
October 30, 2008
Three Things You Must Know to Attract Success
Saturday, October 25, 2008
Despite the credit crunch, there's still plenty of mortgage money
Credit squeeze, credit freeze, credit system seizures: Everybody knows how severe and painful the global financial breakdown has been -- with banks unwilling to lend even to other banks.But what about mortgages? Can you still get a home loan with less than a 20% or 30% down payment? Or with a credit score below 720?
Absolutely. It would be a big stretch to label housing the sunny side of the market at the moment, but there's more light there than in other financial sectors. Consider these facts:* There is no shortage of money available for home mortgages, no freezing of credit to purchase or refinance a house. Why? Because the American mortgage market effectively has been federalized -- at least for the time being. More than 90% of new loans now are being made through the Federal Housing Administration insurance program, plus Fannie Mae and Freddie Mac. FHA is owned by the federal government, and Fannie and Freddie are operating under federal conservatorship. All three have unfettered access to global capital markets at rock-bottom costs because their borrowings are fully guaranteed by the Treasury. Ginnie Mae, which is FHA's pipeline to the bond market, recorded an all-time high of $29 billion in new mortgage-backed securities issued in August.
* Loan terms and credit underwriting standards have been toughened up, but you can still put down 3% (3.5% after Jan. 1) on an FHA-insured mortgage and 5% on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance. FHA's credit standards are generous and forgiving -- the agency exists to help people with less-than-spotless credit histories. Fannie and Freddie have raised their credit-score requirements over the last year, but buyers and refinancers with scores in the upper 600s can still qualify for loans carrying reasonable rates and fees.* Despite the global financial system's quakes, mortgage rates not only remain low by historical standards but have actually declined recently. For the week that ended Oct. 8, according to the Mortgage Bankers Assn., 30-year fixed rates fell to an average 5.99%, and 15-year mortgages averaged 5.71%. Freddie Mac said 30-year rates dropped to an average 5.94%.* Maximum loan amounts through FHA, Fannie and Freddie in high-cost local markets on the West and East coasts continue to be $729,750 through December. In January, the maximum is projected to drop to about $625,000.* Home prices -- pushed by foreclosures and short sales -- have rolled back to 2003 and 2004 levels or lower in many former boom markets. As a result, growing numbers of buyers are coming off the sidelines. The pending home sales index jumped by 7.4% based on purchase contracts signed in August, according to the National Assn. of Realtors. The heaviest increases -- pointing to higher closed sales in the coming two to three months -- were in California, Florida, Nevada and the Washington, D.C., area.Housing and mortgage leaders say consumer worries about the stock market have obscured positive developments underway in real estate, where pricing pain and downsizing have been facts of the life for the last 2 1/2 years.David G. Kittle, president and chief executive of Principle Wholesale Lending Inc. and incoming chairman of the Mortgage Bankers Assn., says "the mortgage market has never shut down" despite the global financial crisis. Money is "clearly available as long as you can qualify for it."Bottom line: Scary as the news has been about stocks and banks, this is not the case for mortgages. Besides shopping at large national lenders, home buyers should check with local banks and credit unions, which may be originating loans for their own portfolios -- not for Fannie, Freddie or FHA. Many of them are healthy and have plenty of cash to lend.
Absolutely. It would be a big stretch to label housing the sunny side of the market at the moment, but there's more light there than in other financial sectors. Consider these facts:* There is no shortage of money available for home mortgages, no freezing of credit to purchase or refinance a house. Why? Because the American mortgage market effectively has been federalized -- at least for the time being. More than 90% of new loans now are being made through the Federal Housing Administration insurance program, plus Fannie Mae and Freddie Mac. FHA is owned by the federal government, and Fannie and Freddie are operating under federal conservatorship. All three have unfettered access to global capital markets at rock-bottom costs because their borrowings are fully guaranteed by the Treasury. Ginnie Mae, which is FHA's pipeline to the bond market, recorded an all-time high of $29 billion in new mortgage-backed securities issued in August.
* Loan terms and credit underwriting standards have been toughened up, but you can still put down 3% (3.5% after Jan. 1) on an FHA-insured mortgage and 5% on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance. FHA's credit standards are generous and forgiving -- the agency exists to help people with less-than-spotless credit histories. Fannie and Freddie have raised their credit-score requirements over the last year, but buyers and refinancers with scores in the upper 600s can still qualify for loans carrying reasonable rates and fees.* Despite the global financial system's quakes, mortgage rates not only remain low by historical standards but have actually declined recently. For the week that ended Oct. 8, according to the Mortgage Bankers Assn., 30-year fixed rates fell to an average 5.99%, and 15-year mortgages averaged 5.71%. Freddie Mac said 30-year rates dropped to an average 5.94%.* Maximum loan amounts through FHA, Fannie and Freddie in high-cost local markets on the West and East coasts continue to be $729,750 through December. In January, the maximum is projected to drop to about $625,000.* Home prices -- pushed by foreclosures and short sales -- have rolled back to 2003 and 2004 levels or lower in many former boom markets. As a result, growing numbers of buyers are coming off the sidelines. The pending home sales index jumped by 7.4% based on purchase contracts signed in August, according to the National Assn. of Realtors. The heaviest increases -- pointing to higher closed sales in the coming two to three months -- were in California, Florida, Nevada and the Washington, D.C., area.Housing and mortgage leaders say consumer worries about the stock market have obscured positive developments underway in real estate, where pricing pain and downsizing have been facts of the life for the last 2 1/2 years.David G. Kittle, president and chief executive of Principle Wholesale Lending Inc. and incoming chairman of the Mortgage Bankers Assn., says "the mortgage market has never shut down" despite the global financial crisis. Money is "clearly available as long as you can qualify for it."Bottom line: Scary as the news has been about stocks and banks, this is not the case for mortgages. Besides shopping at large national lenders, home buyers should check with local banks and credit unions, which may be originating loans for their own portfolios -- not for Fannie, Freddie or FHA. Many of them are healthy and have plenty of cash to lend.
Friday, October 17, 2008
Where did all that "lost" money go?
And why are mortgage rates so high when the Fed keeps cutting rates?
The financial market collapse of the past few weeks has destroyed trillions of dollars in wealth. So where, exactly, did all that money go?
Where did the "lost" money go? I'm sure dollar bills weren't burned up in a fire or flushed down the toilet. … Common sense says "If party A loses a buck, party B makes that buck. So who is party B?
There have definitely been winners in the ongoing collapse of the financial system. And there will be many more as it gets back on its feet.
In the case of stock market gains and losses, the math is pretty simple. If you sold me 100 shares of IBM at the market peak (about $131 a share), you locked in a gain on stock that is now “worth” just $87 a share, according to Friday’s closing price. To me, it looks like the money evaporated. But, depending on when you bought it, you can take a nice vacation trip at my expense.
One the other hand, if you bought IBM stock on Friday, the seller almost certainly lost money if they bought within the last two years – the last time IBM traded for less than $87 a share.
But IBM is the same company it was a few months ago before the market sold off. It’s very likely the price is going to rebound – based on the value of all of IBM’s assets, its business prospects and its highly skilled workforce. The same is true for hundreds of other companies whose stock have gotten hammered. So today’s buyers are likely going to capture some of the “lost” value of stocks. It may take awhile to recover, but the value is almost certainly still there.
The losses related to the housing market are a little more difficult to trace. But despite the continued rise in mortgage defaults and foreclosures, one of the biggest winners of the collapse of the housing market was the American homeowner. Or at least those who sold or refinanced a house before the bubble burst.
As we’re now seeing, the rapid rise in the prices of homes — probably the biggest single asset for most homeowners — was not rooted in a real increase in value. Home prices were rising by double digits in the late stages of the bubble — even though wages were flat.
With their true purchasing power limited by wages, the only way home buyers could keep bidding up prices was by taking advantage of the flood of money from lenders — who began handing out mortgages to anyone who wanted one. Appraisers — hired by the mortgage brokers writing these loans — went along with the rapid run-up in prices.
These lenders didn’t have to worry that some borrowers couldn’t pay the money back — because they sold the loans off to Wall Street, which wrapped them up in a package with a big bow that said “Triple-A Rated.” As long as house prices kept rising, no one bothered to look under the hood to see how risky these loans really were.
But when prices were rising, sellers during that period made real profits. Of course, many had to buy another house at similarly inflated prices. But the gains on those sales were very real — and represent the flip side of the losses we are seeing now.
Some people locked in those gains by refinancing their mortgage — more than once — as home prices rose. Others took out loans against the rising equity in their homes; though that equity has evaporated, they still get to keep the money. They still have to pay back the loan, and that money is going to come out of consumer spending — which is a big reason the economy is at risk. Something like one in six homeowners are “underwater” — they owe more than their house is worth. As everyone tightens their belt at the same time, the contraction in spending would be a huge drag on the economy.
The banks and investors holding all those mortgage backed investments are also big losers, now that millions of homeowners are defaulting on their loans. The winners there are all the folks who profited from the lending boom. The mortgage brokers collected their fees and commissions on those mortgages, lenders took a slice when they sold them to Wall Street, which collected fees for packaging all them and selling them to investors. When the music stopped, there weren’t enough chairs. So if you're holding this mortgage backed paper, you’re going to have a tough time finding a chair to sit on.
Why are mortgage rates going up since the Fed's lowered the rate yesterday? Will they ever reflect the current rate decreases?
Despite what you see in those Web ad pitches with annoying wacko dancers, the Fed has little direct control over long-term rates like 30 year mortgages.
Even under normal circumstances, the Fed’s impact on all interest rates is limited. And these are anything but normal circumstances.
The money market ultimately sets the true “cost” of money — just like the stock market sets the value of shares. Banks and investors with money to spare sell it in the credit markets; interest rates rise and fall as borrowers offer more or less interest to “buy” money. Just as supply and demand set price in any market, if there’s lots of money sloshing around the system, rates go lower. If money is “tight,” rates go up.
When the Federal Reserve's policy makers “set” a short-term interest rates, they’re really just setting a target they’d like to hit. They then try to steer shorter-term rates by buying and selling of Treasury bonds on the open market. (Rates are set by the Fed's Open Market Committee.) Selling those bonds takes cash out of the system (buyers of the bonds have to pay cash) and buying bonds pumps more money into the system.
But the Fed only targets very short term rates; the “fed funds” rate you read about is for loans banks make to each other overnight to make sure they maintain the level of reserves set by regulators. A bank with a little extra money lends it to one that needs a few dollars — and pockets some change on the overnight interest. (When you’re a large money center bank moving billions through the system, that overnight interest adds up.)
Long-term rates like mortgages are also set by the money market, based on the supply of money and the level of risk associated with lending it out for 30 years. That’s why interest rates on long-term loans like mortgages are typically higher than very short term rates like those set by the Fed.
At the moment, the conventional rules are out the window. The credit markets are not behaving normally, and the price of money is based on full-blown panic. Banks have stopped lending to each other because they’re afraid the bank they lend to may be the next one to blow up. Mortgage lending is in slightly better shape — as long as you’re willing to put down a large sum of money to cover the risk that the price of the house you want to buy will fall further.
It remains to be seen how long banks remain locked in panic mode. The Fed and the Treasury are flooding the system with cash, but that doesn’t seem to be enough. It may take a complete government-backed guarantee of all loans between banks before these folks settle down and start lending again.
Quote of the Day
October 16, 2008
Life is the art of drawing without an eraser. -John W. Gardner
The financial market collapse of the past few weeks has destroyed trillions of dollars in wealth. So where, exactly, did all that money go?
Where did the "lost" money go? I'm sure dollar bills weren't burned up in a fire or flushed down the toilet. … Common sense says "If party A loses a buck, party B makes that buck. So who is party B?
There have definitely been winners in the ongoing collapse of the financial system. And there will be many more as it gets back on its feet.
In the case of stock market gains and losses, the math is pretty simple. If you sold me 100 shares of IBM at the market peak (about $131 a share), you locked in a gain on stock that is now “worth” just $87 a share, according to Friday’s closing price. To me, it looks like the money evaporated. But, depending on when you bought it, you can take a nice vacation trip at my expense.
One the other hand, if you bought IBM stock on Friday, the seller almost certainly lost money if they bought within the last two years – the last time IBM traded for less than $87 a share.
But IBM is the same company it was a few months ago before the market sold off. It’s very likely the price is going to rebound – based on the value of all of IBM’s assets, its business prospects and its highly skilled workforce. The same is true for hundreds of other companies whose stock have gotten hammered. So today’s buyers are likely going to capture some of the “lost” value of stocks. It may take awhile to recover, but the value is almost certainly still there.
The losses related to the housing market are a little more difficult to trace. But despite the continued rise in mortgage defaults and foreclosures, one of the biggest winners of the collapse of the housing market was the American homeowner. Or at least those who sold or refinanced a house before the bubble burst.
As we’re now seeing, the rapid rise in the prices of homes — probably the biggest single asset for most homeowners — was not rooted in a real increase in value. Home prices were rising by double digits in the late stages of the bubble — even though wages were flat.
With their true purchasing power limited by wages, the only way home buyers could keep bidding up prices was by taking advantage of the flood of money from lenders — who began handing out mortgages to anyone who wanted one. Appraisers — hired by the mortgage brokers writing these loans — went along with the rapid run-up in prices.
These lenders didn’t have to worry that some borrowers couldn’t pay the money back — because they sold the loans off to Wall Street, which wrapped them up in a package with a big bow that said “Triple-A Rated.” As long as house prices kept rising, no one bothered to look under the hood to see how risky these loans really were.
But when prices were rising, sellers during that period made real profits. Of course, many had to buy another house at similarly inflated prices. But the gains on those sales were very real — and represent the flip side of the losses we are seeing now.
Some people locked in those gains by refinancing their mortgage — more than once — as home prices rose. Others took out loans against the rising equity in their homes; though that equity has evaporated, they still get to keep the money. They still have to pay back the loan, and that money is going to come out of consumer spending — which is a big reason the economy is at risk. Something like one in six homeowners are “underwater” — they owe more than their house is worth. As everyone tightens their belt at the same time, the contraction in spending would be a huge drag on the economy.
The banks and investors holding all those mortgage backed investments are also big losers, now that millions of homeowners are defaulting on their loans. The winners there are all the folks who profited from the lending boom. The mortgage brokers collected their fees and commissions on those mortgages, lenders took a slice when they sold them to Wall Street, which collected fees for packaging all them and selling them to investors. When the music stopped, there weren’t enough chairs. So if you're holding this mortgage backed paper, you’re going to have a tough time finding a chair to sit on.
Why are mortgage rates going up since the Fed's lowered the rate yesterday? Will they ever reflect the current rate decreases?
Despite what you see in those Web ad pitches with annoying wacko dancers, the Fed has little direct control over long-term rates like 30 year mortgages.
Even under normal circumstances, the Fed’s impact on all interest rates is limited. And these are anything but normal circumstances.
The money market ultimately sets the true “cost” of money — just like the stock market sets the value of shares. Banks and investors with money to spare sell it in the credit markets; interest rates rise and fall as borrowers offer more or less interest to “buy” money. Just as supply and demand set price in any market, if there’s lots of money sloshing around the system, rates go lower. If money is “tight,” rates go up.
When the Federal Reserve's policy makers “set” a short-term interest rates, they’re really just setting a target they’d like to hit. They then try to steer shorter-term rates by buying and selling of Treasury bonds on the open market. (Rates are set by the Fed's Open Market Committee.) Selling those bonds takes cash out of the system (buyers of the bonds have to pay cash) and buying bonds pumps more money into the system.
But the Fed only targets very short term rates; the “fed funds” rate you read about is for loans banks make to each other overnight to make sure they maintain the level of reserves set by regulators. A bank with a little extra money lends it to one that needs a few dollars — and pockets some change on the overnight interest. (When you’re a large money center bank moving billions through the system, that overnight interest adds up.)
Long-term rates like mortgages are also set by the money market, based on the supply of money and the level of risk associated with lending it out for 30 years. That’s why interest rates on long-term loans like mortgages are typically higher than very short term rates like those set by the Fed.
At the moment, the conventional rules are out the window. The credit markets are not behaving normally, and the price of money is based on full-blown panic. Banks have stopped lending to each other because they’re afraid the bank they lend to may be the next one to blow up. Mortgage lending is in slightly better shape — as long as you’re willing to put down a large sum of money to cover the risk that the price of the house you want to buy will fall further.
It remains to be seen how long banks remain locked in panic mode. The Fed and the Treasury are flooding the system with cash, but that doesn’t seem to be enough. It may take a complete government-backed guarantee of all loans between banks before these folks settle down and start lending again.
Quote of the Day
October 16, 2008
Life is the art of drawing without an eraser. -John W. Gardner
Wednesday, October 15, 2008
New Listing - Laguna Woods
Model Perfect 1BR 1BA home in Laguna Woods priced at only $125,000. This home is perfect for a single person or couple as a primary or secondary home. Furniture is negotiable.
Call KRISTIN NOW for a private showing.
_________________________
Kristin Devlin
949.350.3771
Thursday, October 9, 2008
Housing Assistance Act Will Impact Many Investors
Housing Assistance Act Will Impact Many Investor Capital Gain Calculations
It has been said that the only time Americans are safe is when Congress is not in session. A possible corollary of this maxim might be that any time a widely-supported bi-partisan bill is hailed as a "rescue”, someone is liable to get hurt. Certainly, if your situation is dealt with in the portion of the bill titled Revenue, you'd better watch out.
Thus we turn to section 3092 of HR 3221 (The Housing Assistance Tax Act of 2008). There, in just a few short lines, much is taken away from what had once been given. Under current law, if you sell a property that has been your personal residence for at least two of the past five years, you may exclude from your taxable income up to $250,000 of the capital gains ($500,000 for a married couple). This is true even if the property has also been used as a rental -- as long as you meet the time period required.
Investors who have acquired the property through a 1031 tax-deferred exchange may use this provision also, although they are required to have owned the property for at least five years before they can take advantage of the exclusion. For example -- and this is a fairly common scenario -- an investor might exchange into a nice rental property which he rents out for three years. Then he moves into it as his principal residence, and sells it after two more years. In that case, the full capital gains exclusion is available.
Under the new rules, the amount of gain available for exclusion will depend on a ratio between the amount of "qualified” and "nonqualified” use of the property. Qualified use is defined as any use of the property as a primary residence. Nonqualified use is defined as any use of the property other than as a primary residence, including use as a second home, a vacation property, a rental or investment property or use in a trade or business. The ratio period is based on the length of ownership of the property. Only the qualified use portion is available for exclusion from taxable gain.
The rules don't take effect until January 1, 2009, and only unqualified use after that date will be taken into account. In short, if you're selling this year, don't worry about the new rules. Moreover, in most cases, sales during the next couple of years will not have an issue.
To see how these rules work, let us consider a couple of examples. (Depreciation issues and sale costs will not be considered in the examples.) Current rules: You acquired a rental property in 2003. Your basis in it is $200,000. You rent it out for three years and then occupy it as your personal residence. In 2008, five years after acquiring it, you sell for $400,000, with a gain of $200,000. (Good for you.) The total gain falls within your individual $250,000 exclusion limit and is excluded from taxable income.
New rules: You acquire a property in 2009. Your basis in it is $200,000. You rent it out for three years and then occupy it as your personal residence. In 2014, five years after acquiring it, you sell for $400,000, with a gain of $200,000. Three of the years, 60% of the ownership period, were of nonqualified use. Thus 60% ($120,000) of the gain will be taxable. Just 40% of the gain ($80,000) represents the qualified use of the property and may be excluded from taxable (capital gain) income.
These new rules will appear as amendments to section 121 of the Internal Revenue Code. There are way, way too many scenarios, variations, and fine-print exceptions to cover in the space available here. Suffice it to say that anyone who is making plans to sell a property that has or will have both qualified and nonqualified uses needs to consult with a competent real estate tax accountant and/or attorney.
Some might be thinking, "Why all the concern about such an esoteric issue? There can't be that many who will be affected by it.” Well, prior to the vote on HR 3221, the Senate Finance Committee estimated that these new rules would raise $1.394 billion over 10 years! I don't know where they get their numbers, but there must be more than a couple of people who are going to be affected by it.
Quote of the Day
October 9, 2008
We should be taught not to wait for inspiration to start a thing. Action always generates inspiration. Inspiration seldom generates action.
~Frank Tibolt
It has been said that the only time Americans are safe is when Congress is not in session. A possible corollary of this maxim might be that any time a widely-supported bi-partisan bill is hailed as a "rescue”, someone is liable to get hurt. Certainly, if your situation is dealt with in the portion of the bill titled Revenue, you'd better watch out.
Thus we turn to section 3092 of HR 3221 (The Housing Assistance Tax Act of 2008). There, in just a few short lines, much is taken away from what had once been given. Under current law, if you sell a property that has been your personal residence for at least two of the past five years, you may exclude from your taxable income up to $250,000 of the capital gains ($500,000 for a married couple). This is true even if the property has also been used as a rental -- as long as you meet the time period required.
Investors who have acquired the property through a 1031 tax-deferred exchange may use this provision also, although they are required to have owned the property for at least five years before they can take advantage of the exclusion. For example -- and this is a fairly common scenario -- an investor might exchange into a nice rental property which he rents out for three years. Then he moves into it as his principal residence, and sells it after two more years. In that case, the full capital gains exclusion is available.
Under the new rules, the amount of gain available for exclusion will depend on a ratio between the amount of "qualified” and "nonqualified” use of the property. Qualified use is defined as any use of the property as a primary residence. Nonqualified use is defined as any use of the property other than as a primary residence, including use as a second home, a vacation property, a rental or investment property or use in a trade or business. The ratio period is based on the length of ownership of the property. Only the qualified use portion is available for exclusion from taxable gain.
The rules don't take effect until January 1, 2009, and only unqualified use after that date will be taken into account. In short, if you're selling this year, don't worry about the new rules. Moreover, in most cases, sales during the next couple of years will not have an issue.
To see how these rules work, let us consider a couple of examples. (Depreciation issues and sale costs will not be considered in the examples.) Current rules: You acquired a rental property in 2003. Your basis in it is $200,000. You rent it out for three years and then occupy it as your personal residence. In 2008, five years after acquiring it, you sell for $400,000, with a gain of $200,000. (Good for you.) The total gain falls within your individual $250,000 exclusion limit and is excluded from taxable income.
New rules: You acquire a property in 2009. Your basis in it is $200,000. You rent it out for three years and then occupy it as your personal residence. In 2014, five years after acquiring it, you sell for $400,000, with a gain of $200,000. Three of the years, 60% of the ownership period, were of nonqualified use. Thus 60% ($120,000) of the gain will be taxable. Just 40% of the gain ($80,000) represents the qualified use of the property and may be excluded from taxable (capital gain) income.
These new rules will appear as amendments to section 121 of the Internal Revenue Code. There are way, way too many scenarios, variations, and fine-print exceptions to cover in the space available here. Suffice it to say that anyone who is making plans to sell a property that has or will have both qualified and nonqualified uses needs to consult with a competent real estate tax accountant and/or attorney.
Some might be thinking, "Why all the concern about such an esoteric issue? There can't be that many who will be affected by it.” Well, prior to the vote on HR 3221, the Senate Finance Committee estimated that these new rules would raise $1.394 billion over 10 years! I don't know where they get their numbers, but there must be more than a couple of people who are going to be affected by it.
Quote of the Day
October 9, 2008
We should be taught not to wait for inspiration to start a thing. Action always generates inspiration. Inspiration seldom generates action.
~Frank Tibolt
Monday, October 6, 2008
Open House Sunday 32 Cedarlake, Irvine
Open house 1-5PM at 32 Cedarlake at lovely 3BR 2.5 Bath, 2 story home with wraparound English garden yard complete with fountain and privacy. Woodbridge a block from the beach and tennis courts at Southlake. A must see!
_____________
Kristin Devlin
949.350.3771
Friday, September 26, 2008
Open House - Woodbridge -Irvine
Open house - Sunday Sept 28th 2-5PM.
32 Cedarlake - next to the South Lake in Woodbridge. newly painted 3Br 2.5BA 2200 sq ft 2 story home $792,000
___________
Kristin Devlin
949.350.3771
Irvine Homes
32 Cedarlake - next to the South Lake in Woodbridge. newly painted 3Br 2.5BA 2200 sq ft 2 story home $792,000
___________
Kristin Devlin
949.350.3771
Irvine Homes
Tuesday, September 16, 2008
Check out Free Concerts in the OC Great Park, Irvine
PERFORMING THIS WEEK:FRIDAY, SEPTEMBER 19 at 8:00 pmJohnny Polanco y Conjunto Amistad: LA’s best salsa band – horns, vibes, vocals, everything [Website]SATURDAY, SEPTEMBER 20 at 8:00 pmYaelisa & Caminos Flamencos: Classic Spanish flamenco music and dance [Website]
Check the Great Park website for Details
http://www.ocgp.org/news/displaynews.asp?NewsID=116
ABOUT NIGHT FLIGHTSDuring the months of August and September, Great Park guests will be captivated by the music and performances of "Night Flights," presented by OCGP and the Irvine Barclay Theatre. On Friday nights, live bands will perform in front of Hangar 244 and dance instructors will demonstrate a few simple steps to get the crowds dancing!
To complete the evenings, Hangar #244 will be transformed into a café during "Night Flights" performances. A fresh, casual gourmet selection of food will be available for purchase to dine-in or to enjoy on the picnic lawn. In addition, a photography exhibition depicting the history of the former El Toro Marine Corp Air Station and the future of the Great Park will be showcased by the Legacy Project.
Check the Great Park website for Details
http://www.ocgp.org/news/displaynews.asp?NewsID=116
ABOUT NIGHT FLIGHTSDuring the months of August and September, Great Park guests will be captivated by the music and performances of "Night Flights," presented by OCGP and the Irvine Barclay Theatre. On Friday nights, live bands will perform in front of Hangar 244 and dance instructors will demonstrate a few simple steps to get the crowds dancing!
To complete the evenings, Hangar #244 will be transformed into a café during "Night Flights" performances. A fresh, casual gourmet selection of food will be available for purchase to dine-in or to enjoy on the picnic lawn. In addition, a photography exhibition depicting the history of the former El Toro Marine Corp Air Station and the future of the Great Park will be showcased by the Legacy Project.
Monday, September 1, 2008
Open House - Woodbridge, Irvine
32 Cedarlake, Woodbridge, Irvine
Open House 1pm-5pm Sunday September 7
Come on down and sample life by the lake.
_____________________________
Kristin Devlin
(949) 350-3771
Wednesday, August 20, 2008
Open House - 32 Cedarlake Irvine Sunday 1-5PM
Come see this beautiful 3BR 2 story home located a block from Woodbridge South Lake. Wonderful garden with flowers, trees and patio cover to enjoy a summer's afternoon.
__________________
Kristin Devlin
949.350.3771
Tuesday, July 22, 2008
New Listing - Open House - Wednesday 23rd July
32 Cedarlake, Irvine...1 block from South Lake in Woodbridge. 3Br 2.5BA 2 story with family room, cathedral ceilings, breakfast nook and enchanting garden complete with running fountain.
Come see it.
______________________
Kristin Devlin
949.350.3771
Irvine Homes
Come see it.
______________________
Kristin Devlin
949.350.3771
Irvine Homes
Saturday, July 19, 2008
Laguna Woods - Open House - 1-3PM
2BR 2BA in Laguna Woods completely remodeled unit, with new kitchen and bathrooms. Only $249,000. Call for directions. 814 Via Alhambra
Kristin Devlin
949.350.3771
Friday, July 4, 2008
OPEN HOUSE - Laguna Woods,Sunday 12-4PM
814 Via Alhambra...seller very motivated. Highly upgraded 2BR 2BA unit with views. New kitchen and appliances, new tile in bath and shower, enclosed patio to use as study, den. Call for entrance to security gate
Only $249,000
Call Kristin
949.350.3771
Wednesday, June 25, 2008
Laguna Woods,Lake Forest,Irvine,Mission Viejo,Laguna Woods Homeowners
Last Week in the News
--------------------------------------------------------------------------------
The Conference Board’s index of leading economic indicators inched ahead 0.1% in May, matching April’s increase and equaling analysts’ expectations. The index, released June 19, is designed to forecast economic activity in the next three to six months based on 10 components, including stock prices, building permits and initial claims for unemployment benefits.
The Producer Price Index (PPI), which measures the cost of goods before they reach store shelves, rose 1.4% in May, the biggest increase since November, the Labor Department said June 17. However, core PPI, which strips out energy and food prices, increased 0.2% in May, an improvement from a 0.4% rise in April.
Housing starts slumped 3.3% in May to an annual pace of 975,000 units, a level not seen since March 1991, the Commerce Department reported June 17. Although May housing starts were down 25% in the Midwest, 10.3% in the West and 4.4% in the South, the Northeast saw a 61.5% jump, led by a rebound in multifamily projects. Meanwhile, building permits in May fell to an annual rate of 969,000, slightly better than the 960,000 rate that economists expected.
Pressured by rising mortgage rates, mortgage application volume fell 8.7% for the week ending June 13, the Mortgage Bankers Association reported. For the week ending June 18, Freddie Mac said rates on 30-year mortgages continued climbing, reaching their highest level in nine months, reflecting more concerns about what the Federal Reserve will do to combat a growing inflation threat.
The number of newly laid-off workers seeking unemployment benefits for the week ending June 13 fell by 5,000 to 381,000, the Labor Department reported June 19. The biggest increases for jobless benefits came from California (10,778) and Florida (6,164).
Economic news due out this week includes reports on new home sales on June 25 and existing home sales on June 26.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
____________________
Kristin Devlin
949.350.3771
Orange County Homes
--------------------------------------------------------------------------------
The Conference Board’s index of leading economic indicators inched ahead 0.1% in May, matching April’s increase and equaling analysts’ expectations. The index, released June 19, is designed to forecast economic activity in the next three to six months based on 10 components, including stock prices, building permits and initial claims for unemployment benefits.
The Producer Price Index (PPI), which measures the cost of goods before they reach store shelves, rose 1.4% in May, the biggest increase since November, the Labor Department said June 17. However, core PPI, which strips out energy and food prices, increased 0.2% in May, an improvement from a 0.4% rise in April.
Housing starts slumped 3.3% in May to an annual pace of 975,000 units, a level not seen since March 1991, the Commerce Department reported June 17. Although May housing starts were down 25% in the Midwest, 10.3% in the West and 4.4% in the South, the Northeast saw a 61.5% jump, led by a rebound in multifamily projects. Meanwhile, building permits in May fell to an annual rate of 969,000, slightly better than the 960,000 rate that economists expected.
Pressured by rising mortgage rates, mortgage application volume fell 8.7% for the week ending June 13, the Mortgage Bankers Association reported. For the week ending June 18, Freddie Mac said rates on 30-year mortgages continued climbing, reaching their highest level in nine months, reflecting more concerns about what the Federal Reserve will do to combat a growing inflation threat.
The number of newly laid-off workers seeking unemployment benefits for the week ending June 13 fell by 5,000 to 381,000, the Labor Department reported June 19. The biggest increases for jobless benefits came from California (10,778) and Florida (6,164).
Economic news due out this week includes reports on new home sales on June 25 and existing home sales on June 26.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
____________________
Kristin Devlin
949.350.3771
Orange County Homes
Wednesday, June 18, 2008
Laguna Woods, Lake Forest, Mission Viejo, Laguna Hills Residents
Last Week in the News
Reflecting the stimulus from government rebate checks, retail sales rose a full percentage point in May, double what economists were anticipating, the Commerce Department reported June 12. Not including the higher prices consumers paid for gasoline, retail sales still rose a strong 0.8%, the biggest increase in a year.
Sales of existing homes in April also caught economists off guard, climbing 6.3% instead of the negative 0.4% drop they were predicting. The new reading, issued June 9 by the National Association of REALTORS®, indicates that the drop in property values has started attracting more buyers and bargain hunters.
Soaring gasoline prices helped push consumer inflation up 0.6% in May, the fastest pace in six months, the Labor Department said June 12. But core inflation, which strips out volatile gas and food prices, edged up a modest 0.2%, easing concerns that big jumps in energy and food costs were breaking through to more widespread inflation.
The nation’s trade deficit — what we import versus what we export — rose 7.8% to $60.9 billion, the largest imbalance since March 2007, the Commerce Department said June 10. Driving the deficit was a $4.3 billion increase in crude oil imports, which jumped to a record $29.3 billion in April.
New claims for unemployment benefits rose to 384,000, an increase of 25,000 from the previous week, the Labor Department reported June 12.
More upbeat economic news came from the Mortgage Bankers Association, which said that mortgage loan applications rose 10.9% from the previous week. Purchase applications increased 12.1% while refi volume was up 8.4% from the previous week.
___________________
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Reflecting the stimulus from government rebate checks, retail sales rose a full percentage point in May, double what economists were anticipating, the Commerce Department reported June 12. Not including the higher prices consumers paid for gasoline, retail sales still rose a strong 0.8%, the biggest increase in a year.
Sales of existing homes in April also caught economists off guard, climbing 6.3% instead of the negative 0.4% drop they were predicting. The new reading, issued June 9 by the National Association of REALTORS®, indicates that the drop in property values has started attracting more buyers and bargain hunters.
Soaring gasoline prices helped push consumer inflation up 0.6% in May, the fastest pace in six months, the Labor Department said June 12. But core inflation, which strips out volatile gas and food prices, edged up a modest 0.2%, easing concerns that big jumps in energy and food costs were breaking through to more widespread inflation.
The nation’s trade deficit — what we import versus what we export — rose 7.8% to $60.9 billion, the largest imbalance since March 2007, the Commerce Department said June 10. Driving the deficit was a $4.3 billion increase in crude oil imports, which jumped to a record $29.3 billion in April.
New claims for unemployment benefits rose to 384,000, an increase of 25,000 from the previous week, the Labor Department reported June 12.
More upbeat economic news came from the Mortgage Bankers Association, which said that mortgage loan applications rose 10.9% from the previous week. Purchase applications increased 12.1% while refi volume was up 8.4% from the previous week.
___________________
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Friday, June 13, 2008
Laguna Woods Open House
Sunday Open House 2-4PM $249,000
Gorgeous Remodelled 2BR 2BA
814 Via Alhambra
Laguna Woods
_________________________
Kristin Devlin
949.350.3771
Monday, June 9, 2008
Orange County new listing
New listing in Beautiful Anaheim Shores. 3BR 2BA one level single family home near the lake, 3 swimming pools, trails and more. Home is clean, updated and ready to move in.
Call Now
________________________
Kristin Devlin
949.350.3771
Monday, June 2, 2008
Orange County news for Laguna Woods, Irvine,Lake Forest, Mission Viejo residents
Last Week in the News
New home sales unexpectedly rose 3.3% in April, the first increase in six months, the Commerce Department said May 27. As a result, the inventory of unsold new homes fell slightly to a 10.6 months’ supply versus the 11.1 months’ backlog recorded in March.
The Commerce Department further reported that the median price of a new home sold in April rose to $246,100, up 1.5% from April 2007. In a separate report, however, the Standard & Poor’s/Case-Shiller Index showed existing home prices falling 14.1% in the first quarter of 2008, compared with a year earlier, the biggest year-over-year decline since the index began in 1988.
For the week ending May 29, interest rates on 30-year fixed-rate mortgages rose to an 11-week high, Freddie Mac said.
__________________________
Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
New home sales unexpectedly rose 3.3% in April, the first increase in six months, the Commerce Department said May 27. As a result, the inventory of unsold new homes fell slightly to a 10.6 months’ supply versus the 11.1 months’ backlog recorded in March.
The Commerce Department further reported that the median price of a new home sold in April rose to $246,100, up 1.5% from April 2007. In a separate report, however, the Standard & Poor’s/Case-Shiller Index showed existing home prices falling 14.1% in the first quarter of 2008, compared with a year earlier, the biggest year-over-year decline since the index began in 1988.
For the week ending May 29, interest rates on 30-year fixed-rate mortgages rose to an 11-week high, Freddie Mac said.
__________________________
Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Friday, May 30, 2008
Orange County residents, Lake Forest, Irvine, Mission Viejo, Laguna Woods
Hi Everyone,
Here's some recent news on FICO scoring changes:
FICO ’08: What You Need to Know
Set to debut this year, FICO ’08 is the latest model for scoring lending risk from Fair Isaac, the industry‘s leading credit-rating firm. Experts are predicting that FICO ’08 could reduce default rates between 5 percent and 15 percent.
Here’s what to expect:
The new scoring system will go easier on consumers with one credit misstep and harder on those with multiple credit dings.
Authorized Users (AUs) are people with credit cards who are approved to make purchases but are not responsible for paying the balances. (A student authorized to use a parent’s credit card is an example of an AU.) Under current FICO scoring, the history of the credit card performance is reported on the AU’s credit record, thus influencing the score. But with FICO ’08, credit cards for which people have AU status will no longer influence their credit score. Therefore, AUs might consider changing their status on existing credit accounts from AU to Joint, or opening an account of their own to build their credit score.
High credit balances will deduct more points under the new system. More than ever, it’s important to lower balances on revolving credit accounts.
The new system will look favorably on consumers with various types of debt. For example, people with revolving and installment credit will fare better than those with nothing but revolving credit card debt.
FICO scoring will still range from 300 to 850. Customers can get a free credit report at annualcreditreport.com.
For more information, visit fairisaac.com.
-----------------------------
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Here's some recent news on FICO scoring changes:
FICO ’08: What You Need to Know
Set to debut this year, FICO ’08 is the latest model for scoring lending risk from Fair Isaac, the industry‘s leading credit-rating firm. Experts are predicting that FICO ’08 could reduce default rates between 5 percent and 15 percent.
Here’s what to expect:
The new scoring system will go easier on consumers with one credit misstep and harder on those with multiple credit dings.
Authorized Users (AUs) are people with credit cards who are approved to make purchases but are not responsible for paying the balances. (A student authorized to use a parent’s credit card is an example of an AU.) Under current FICO scoring, the history of the credit card performance is reported on the AU’s credit record, thus influencing the score. But with FICO ’08, credit cards for which people have AU status will no longer influence their credit score. Therefore, AUs might consider changing their status on existing credit accounts from AU to Joint, or opening an account of their own to build their credit score.
High credit balances will deduct more points under the new system. More than ever, it’s important to lower balances on revolving credit accounts.
The new system will look favorably on consumers with various types of debt. For example, people with revolving and installment credit will fare better than those with nothing but revolving credit card debt.
FICO scoring will still range from 300 to 850. Customers can get a free credit report at annualcreditreport.com.
For more information, visit fairisaac.com.
-----------------------------
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Wednesday, May 28, 2008
Lake Forest, Irvine, Laguna Woods residents
Hi everyone,
I am back in town (actually returned very late Saturday night). Apparently mortgage rates have been continuing to be unpredicable....rising and lowering on a daily basis. Home sales have dropped everywhere in the country except the West where is appears sales have increased 6.4% (CNN news). I still see multiple offers on well priced condos and homes.
More later
----------------------
Kristin Devlin
949.350.3771
Orange County Real Estate
I am back in town (actually returned very late Saturday night). Apparently mortgage rates have been continuing to be unpredicable....rising and lowering on a daily basis. Home sales have dropped everywhere in the country except the West where is appears sales have increased 6.4% (CNN news). I still see multiple offers on well priced condos and homes.
More later
----------------------
Kristin Devlin
949.350.3771
Orange County Real Estate
Friday, May 23, 2008
lake forest, mission viejo, laguna woods, Irvine residents
Is the Housing Market at the bottom? that seems to be the word in the inner circle. With many homes now experiencing multiple offers (largely bank owned) and often selling over the asking price this seems to be a real possibility!
__________________
Kristin Devlin
949.350.3771
Sunday, May 18, 2008
Lake Forest,Laguna woods, Irvine, Mission Viejo residents
Hi again,
It was off to the Cannes Film Festival and Monte Carlo this weekend for a bit of rest and relaxation. Cannes was packed with filmgoers and partyers with loads of both. it was interesting and fun but was glad to be back in my hotel in Menton.
Kristin
________________
kristin devlin
949.350.3771
orange county homes and real estate
It was off to the Cannes Film Festival and Monte Carlo this weekend for a bit of rest and relaxation. Cannes was packed with filmgoers and partyers with loads of both. it was interesting and fun but was glad to be back in my hotel in Menton.
Kristin
________________
kristin devlin
949.350.3771
orange county homes and real estate
Thursday, May 15, 2008
Lake Forest,Laguna woods, Irvine, Mission Viejo residents
Hi Everyone,
I've been working doing presentations overseas. When I have a few extra hours, I've been viewing homes here in France. With the declining value of the dollar, homes are very expensive (tres cher) even though the real estate market has declined 10% already. The weather has been cool and raining..not exactly what you expect this time of the year in southern france.
The Cannes film festival is next week so there has been a large infux of Americans this week.
More later.
Kristin
____________________
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
I've been working doing presentations overseas. When I have a few extra hours, I've been viewing homes here in France. With the declining value of the dollar, homes are very expensive (tres cher) even though the real estate market has declined 10% already. The weather has been cool and raining..not exactly what you expect this time of the year in southern france.
The Cannes film festival is next week so there has been a large infux of Americans this week.
More later.
Kristin
____________________
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Friday, May 9, 2008
Laguna Woods, Lake Forest, Mission Viejo, IRvine, Orange County Residents HELP?
The House on Thursday passed a contentious foreclosure-prevention package, which still faces a veto threat from the White House and an uncertain fate in the Senate.
In a 266-154 vote - with 39 Republicans voting in favor - lawmakers approved a proposal, sponsored by House Financial Services Chairman Barney Frank, D-Mass., to let the Federal Housing Administration (FHA) insure up to $300 billion in new loans over four years if lenders agree to reduce the mortgage principal.
To qualify, the lender would have to cut the debt to no more than 85% of a home's current appraised value. If the FHA-refinanced loans went into default, the FHA would pay the lender the remaining principal owed.
While 1.4 million loans are likely to be eligible for such a program, the Congressional Budget Office estimates such a measure would end up insuring 500,000 borrowers. The CBO estimates the FHA expansion program would cost taxpayers $1.7 billion.
"This bill is very time limited and limited in specifics to a subset of mortgages and meant to mitigate a market failure," Frank said during the floor debate on Thursday.
Opponents of the FHA expansion contend it's a bailout for lenders, investors and "speculators" who took on imprudent risk. And because participation in the program would be voluntary on the part of lenders, critics contend lenders would only unload their riskiest loans into the federally backed program.
Supporters note that the program is limited to loans for owner-occupied residents, not speculators. They also make the case that lenders and investors would be taking a loss on every loan, and that the borrower would be paying higher-than-usual premiums to the FHA to insure the loan and would share equity in their home with the government.
"No borrower who goes through this process will say at the end of it, 'Boy, that was fun. Where do I buy a ticket to get back on Space Mountain?" Frank said.
Supporters also say if the borrower still can't afford the loan when it's written down to 85% of appraised value, their loan won't qualify for the program. If the bill is a bailout for anyone, they say, it's a bailout for communities across the country, which suffer when home values and property taxes go down because of foreclosures.
Earlier on Thursday, the House passed a bill that would send states $15 billion to buy and fix up foreclosed properties - a measure the White House also opposes.
Frank's bill also includes elements intended to attract the support of Senate Republicans and the White House. Two key ones: modernization of FHA guidelines - for which both the House and Senate have already passed their own bills - and more stringent oversight of Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that guarantee the purchase and sale of home mortgages in the secondary market.
Nevertheless, late Tuesday, the White House issued a statement threatening to veto the bill in its current form. Analysts see the move as a tactical one intended to give Republicans more leverage in the negotiations.
That leverage is seen in the Senate, where Banking Committee Chairman Christopher Dodd, D-Conn., and ranking minority member Richard Shelby, R-Ala. are negotiating a housing package that could include GSE reform, FHA reform, and a Dodd FHA rescue proposal similar to Frank's.
When asked if Frank's proposal is something he could support, Shelby told CNN's Jeanne Meserve, "I'd have to evaluate it - how we're going to pay for it., what it's really going to do, do we really know if housing prices have bottomed out."
When asked if it was possible Congress would end up doing nothing, Shelby said, "The best of me says we ought to try to work this project out, see if we can have GSE reform, see if we can have FHA reform, and see if we can reach some kind of accommodation on housing
----------------------
Kristin Devlin
Orange County Homes and Real Estate
949.350.3771
In a 266-154 vote - with 39 Republicans voting in favor - lawmakers approved a proposal, sponsored by House Financial Services Chairman Barney Frank, D-Mass., to let the Federal Housing Administration (FHA) insure up to $300 billion in new loans over four years if lenders agree to reduce the mortgage principal.
To qualify, the lender would have to cut the debt to no more than 85% of a home's current appraised value. If the FHA-refinanced loans went into default, the FHA would pay the lender the remaining principal owed.
While 1.4 million loans are likely to be eligible for such a program, the Congressional Budget Office estimates such a measure would end up insuring 500,000 borrowers. The CBO estimates the FHA expansion program would cost taxpayers $1.7 billion.
"This bill is very time limited and limited in specifics to a subset of mortgages and meant to mitigate a market failure," Frank said during the floor debate on Thursday.
Opponents of the FHA expansion contend it's a bailout for lenders, investors and "speculators" who took on imprudent risk. And because participation in the program would be voluntary on the part of lenders, critics contend lenders would only unload their riskiest loans into the federally backed program.
Supporters note that the program is limited to loans for owner-occupied residents, not speculators. They also make the case that lenders and investors would be taking a loss on every loan, and that the borrower would be paying higher-than-usual premiums to the FHA to insure the loan and would share equity in their home with the government.
"No borrower who goes through this process will say at the end of it, 'Boy, that was fun. Where do I buy a ticket to get back on Space Mountain?" Frank said.
Supporters also say if the borrower still can't afford the loan when it's written down to 85% of appraised value, their loan won't qualify for the program. If the bill is a bailout for anyone, they say, it's a bailout for communities across the country, which suffer when home values and property taxes go down because of foreclosures.
Earlier on Thursday, the House passed a bill that would send states $15 billion to buy and fix up foreclosed properties - a measure the White House also opposes.
Frank's bill also includes elements intended to attract the support of Senate Republicans and the White House. Two key ones: modernization of FHA guidelines - for which both the House and Senate have already passed their own bills - and more stringent oversight of Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that guarantee the purchase and sale of home mortgages in the secondary market.
Nevertheless, late Tuesday, the White House issued a statement threatening to veto the bill in its current form. Analysts see the move as a tactical one intended to give Republicans more leverage in the negotiations.
That leverage is seen in the Senate, where Banking Committee Chairman Christopher Dodd, D-Conn., and ranking minority member Richard Shelby, R-Ala. are negotiating a housing package that could include GSE reform, FHA reform, and a Dodd FHA rescue proposal similar to Frank's.
When asked if Frank's proposal is something he could support, Shelby told CNN's Jeanne Meserve, "I'd have to evaluate it - how we're going to pay for it., what it's really going to do, do we really know if housing prices have bottomed out."
When asked if it was possible Congress would end up doing nothing, Shelby said, "The best of me says we ought to try to work this project out, see if we can have GSE reform, see if we can have FHA reform, and see if we can reach some kind of accommodation on housing
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Kristin Devlin
Orange County Homes and Real Estate
949.350.3771
Thursday, May 8, 2008
Laguna Woods, Lake Forest, Mission Viejo, IRvine Residents
Hi Everyone,
Well the market has been really active this past month. Many homes have had multiple offers (I've lost a few to a higher bidder) and seemingly buyers are out there in droves! This isn't just in Orange County as I have clients who are resident in other California counties and they say they notice the same quick sales. Homes that are well priced sell and those that are not, sit many times for months! Buyers are intelligent and many follow the market so that they are aware of a good buy when they see one.
The key to a quick sale...price it right and it will be in escrow.
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Kristin Devlin
949.350.3771
ORange County Homes and Real Estate
Well the market has been really active this past month. Many homes have had multiple offers (I've lost a few to a higher bidder) and seemingly buyers are out there in droves! This isn't just in Orange County as I have clients who are resident in other California counties and they say they notice the same quick sales. Homes that are well priced sell and those that are not, sit many times for months! Buyers are intelligent and many follow the market so that they are aware of a good buy when they see one.
The key to a quick sale...price it right and it will be in escrow.
-----------------
Kristin Devlin
949.350.3771
ORange County Homes and Real Estate
Monday, May 5, 2008
Laguna Woods, Mission Viejo, Lake Forest, Irvine Mortgage Update
Good morning everybody,
Though the bond market took a beating on Friday, Conforming, FHA & even Jumbo rates dipped slightly this week. For yet another week... be sure to check out 80% LTV, 5/1 Interest Only Jumbo ARM loan at 5.725% to $1.5 Million!! Hey... prices continue to drop, and buyers are starting to take advantage of the bargains and are out there making offers!!
Each week new reports abound of how the Big Lenders are continuing to have problems! So far there doesn't seem to be any resolution.
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Kristin Devlin
Orange County News
Though the bond market took a beating on Friday, Conforming, FHA & even Jumbo rates dipped slightly this week. For yet another week... be sure to check out 80% LTV, 5/1 Interest Only Jumbo ARM loan at 5.725% to $1.5 Million!! Hey... prices continue to drop, and buyers are starting to take advantage of the bargains and are out there making offers!!
Each week new reports abound of how the Big Lenders are continuing to have problems! So far there doesn't seem to be any resolution.
-------------------------------
Kristin Devlin
Orange County News
Tuesday, April 29, 2008
Huntington Beach Open House
Open house Sunday 1-4PM.
6474 Marigayle, Huntington Beach $2,500,000
Beautiful model perfect home with view of the wetlands and ocean. 3BR upstairs and 1 BR down. Large open floorplan, pool and wraparound yard. 4 car garage
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Kristin Devlin
949.350.3771
Laguna Woods Open House
Open house Saturday 12-4PM
814 Via Alhambra, use Gate 2. You will need a gate pass to enter. If you need access please call and I can call the Gate to let you in.
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Kristin Devlin
949.350.3771
Friday, April 25, 2008
Laguna Woods, Lake Forest, Mission Viejo Owners
Labor Department's surprising drop in unemployment claims, expectation of ending Fed rate cuts push U.S. government bond prices lower.
Bond prices slip on positive government job report.ORK (AP) -- Treasury prices fell Thursday as investors, already anticipating an end to the Federal Reserve's rate-cutting campaign, found another reason to sell government bonds when a report showed a surprising drop in unemployment claims.
Investors have been concerned about the weak economy's effect on the labor market, and grew a little less worried after the Labor Department said initial claims for unemployment benefits fell by 33,000 last week to 342,000. Economists had forecast that claims last week rose by 3,000.
The four-week moving average - which helps investors look past week-to-week volatility - also fell, dropping by 7,250 to 369,500.
The government data followed a Wall Street Journal report predicting the Fed will probably lower its benchmark fed funds rate by another quarter point when it meets next week, but then take a pause.
A halt in rate cuts would indicate either that an economic recovery is in sight, or that inflation is becoming a bigger threat than slowing growth. Neither scenario makes Treasurys appear particularly attractive.
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Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Bond prices slip on positive government job report.ORK (AP) -- Treasury prices fell Thursday as investors, already anticipating an end to the Federal Reserve's rate-cutting campaign, found another reason to sell government bonds when a report showed a surprising drop in unemployment claims.
Investors have been concerned about the weak economy's effect on the labor market, and grew a little less worried after the Labor Department said initial claims for unemployment benefits fell by 33,000 last week to 342,000. Economists had forecast that claims last week rose by 3,000.
The four-week moving average - which helps investors look past week-to-week volatility - also fell, dropping by 7,250 to 369,500.
The government data followed a Wall Street Journal report predicting the Fed will probably lower its benchmark fed funds rate by another quarter point when it meets next week, but then take a pause.
A halt in rate cuts would indicate either that an economic recovery is in sight, or that inflation is becoming a bigger threat than slowing growth. Neither scenario makes Treasurys appear particularly attractive.
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Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Tuesday, April 22, 2008
Laguna Woods, Lake Forest, Mission Viejo residents
Here's the latest economic news.
Last Week in the News
In line with analysts' expectations, consumer prices pushed 0.3% higher in March after being unchanged in February, the Commerce Department reported April 16. Core consumer inflation, which excludes food and energy costs, rose 0.2% in March. Over the past 12 months, consumer inflation is up 4%, reflecting relentless gains in energy costs, which are up 17% over that period, and food prices, which are up 4.4%.
At the wholesale level, producer prices rose 1.1% in March, almost triple the 0.4% rise economists had expected. Core wholesale inflation, which strips out energy and food costs, rose just 0.2%, down from a 0.5% increase in February. For the past 12 months, producer prices are up by 6.9% and core producer inflation is up 2.7%, the biggest year-over-year increase in two years.
Housing starts fell by 11.9% in March to an annual rate of 947,000 units, the Commerce Department said April 16, a much bigger decline than economists were predicting. Meanwhile, building permits fell 5.8% to an annual rate of 927,000, the slowest pace since a 916,000 rate in April 1991.
Industrial production fared better, however, as output increased 0.3% in March, following a sharp 0.7% decline in February. Wall Street had predicted a 0.1% decline. Strength came mostly from the mining and utility sectors.
First-time claims for jobless benefits rose by 17,000, to 372,000 for the week ended April 12, the Labor Department reported. The four-week moving average of new claims held steady at 376,000.
According to RealtyTrac Inc, foreclosure filings were 5% higher in March than February and 57% higher than a year ago. March marked the 27th consecutive month of year-over-year increases in national foreclosure filings. Approximately one in every 538 households received a foreclosure filing in March.
Economic news due out this week includes reports on existing home sales on April 23 and new home sales on April 24.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
----------------------------------------------------
Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Last Week in the News
In line with analysts' expectations, consumer prices pushed 0.3% higher in March after being unchanged in February, the Commerce Department reported April 16. Core consumer inflation, which excludes food and energy costs, rose 0.2% in March. Over the past 12 months, consumer inflation is up 4%, reflecting relentless gains in energy costs, which are up 17% over that period, and food prices, which are up 4.4%.
At the wholesale level, producer prices rose 1.1% in March, almost triple the 0.4% rise economists had expected. Core wholesale inflation, which strips out energy and food costs, rose just 0.2%, down from a 0.5% increase in February. For the past 12 months, producer prices are up by 6.9% and core producer inflation is up 2.7%, the biggest year-over-year increase in two years.
Housing starts fell by 11.9% in March to an annual rate of 947,000 units, the Commerce Department said April 16, a much bigger decline than economists were predicting. Meanwhile, building permits fell 5.8% to an annual rate of 927,000, the slowest pace since a 916,000 rate in April 1991.
Industrial production fared better, however, as output increased 0.3% in March, following a sharp 0.7% decline in February. Wall Street had predicted a 0.1% decline. Strength came mostly from the mining and utility sectors.
First-time claims for jobless benefits rose by 17,000, to 372,000 for the week ended April 12, the Labor Department reported. The four-week moving average of new claims held steady at 376,000.
According to RealtyTrac Inc, foreclosure filings were 5% higher in March than February and 57% higher than a year ago. March marked the 27th consecutive month of year-over-year increases in national foreclosure filings. Approximately one in every 538 households received a foreclosure filing in March.
Economic news due out this week includes reports on existing home sales on April 23 and new home sales on April 24.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
----------------------------------------------------
Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Sunday, April 20, 2008
Laguna Woods, Lake Forest, Mission Viejo Homeowners
Is your loan higher than the value of your home? Are your loan payments adjusting soon or have already increased? Do you just want to walk away from your home and start anew? May I recommend contacting A Fresh Start, LLC. Their professional team (of real estate and mortgage experts) can help you. A consultation with an experienced attorney is included.
Their phone numbers are: 310.937.9069 or 949.350.1374.
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Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Their phone numbers are: 310.937.9069 or 949.350.1374.
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Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Thursday, April 17, 2008
Laguna Woods - open house Sunday
914-N Via Alhambra - come and see this beautiful remodelled home! Open 12:30-3:30PM.
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Kristin Devlin
949.350.3771
Monday, April 14, 2008
Laguna Woods & Lake Forest homes
I'm sure you all know the real estate market is now a buyers market. However, this weekend I showed 2 buyers and every home I showed had agts showing their buyers. The homes priced well are SELLING!!! 190 homes in Lake Forest and Laguna Woods have sold in the past 30 days!!!
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Kristin Devlin
949.350.3771
Laguna Woods and Lake Forest homes and Real Estate
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Kristin Devlin
949.350.3771
Laguna Woods and Lake Forest homes and Real Estate
Tuesday, April 8, 2008
Laguna Woods residents tax assistance
Those that need assistance in preparing their 2007 tax returns can receive Free tax service from on Mondays from 9-4PM April 14th at the Senior Center and Wednesdays from 9AM-4PM through April 9th at the Laguna Woods Administration building. Taxe-Aide is the nation's largest, free tax counseling and preparation service. For more information call Kristin
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Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
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Kristin Devlin
949.350.3771
Laguna Woods Homes and Real Estate
Saturday, April 5, 2008
Buyers - Lake Forest & Laguna Woods Foreclosures
We have a few short sales and bank owned properties available for quick sales. please call to see these. Prices from $149,000 - $580,000
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Kristin Devlin
949.350.3771
kristinsdevlin@aol.com
Laguna Woods and Lake Forest Homes and Real Estate
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Kristin Devlin
949.350.3771
kristinsdevlin@aol.com
Laguna Woods and Lake Forest Homes and Real Estate
Friday, April 4, 2008
Laguna Woods and Lake Forest residents
The new FHA guidelines have now increase to $729,750 for the OC. For purchases this requires a 3% minimum downpayment. This certainly helps those purchasers that have a small downpayment as the guidelines for conventional loans have tightened severely often requiring a minimum downpayment of 10% and pristine credit. FHA loan guidelines don't utilise the FICO scores but rather Debt-to-Income ratios instead. If you have any questions, please call.
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Kristin Devlin
949.350.3771
kristinsdevlin@aol.com
Laguna Woods and Lake Forest Homes and Real Estate
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Kristin Devlin
949.350.3771
kristinsdevlin@aol.com
Laguna Woods and Lake Forest Homes and Real Estate
Wednesday, April 2, 2008
Laguna Woods listing 2BR2BA single story
Imagine a 2BR 2BA single story with newly remodeled bathrooms for only $209,000. Aprox 950 sq ft with interior atrium and outside private patio. Call now for a private showing.
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Kristin Devlin
949.350.3771
Tuesday, April 1, 2008
Laguna Woods Open House
OPEN HOUSE Sunday 1-3:30PM, 814-N Via Alhambra, Laguna Woods. Come view this gorgeous new listing. 2BR 2BA completely remodeled unit with enclosed patio. Use Gate 2 for access. If you need a pass for access, please call or email Kristin
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Kristin Devlin
949.350.3771
kristinsdevlin@aol.com
Laguna Woods Homes and Real Estate
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Kristin Devlin
949.350.3771
kristinsdevlin@aol.com
Laguna Woods Homes and Real Estate
Monday, March 31, 2008
Laguna Woods New Listing
Gorgeous new Casa Linda (2BR 2BA) completely remodeled, single story in great location. Have your morning coffee while sitting in your enclosed patio viewing the trees. Kitchen has new stove, oven, dishwasher, microwave. Come see. Call Kristin now 949.350.3771 for a private showing.
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Kristin Devlin
949.350.3771
Saturday, March 29, 2008
Laguna Woods/Leisure World foreclosures
As you know we have been hit hard by the number of Americans suffering from loan rate adjustments and their inability to make their monthly payments. AmericaWide Inc together with A Fresh Start, LLC can help those with refinaces as well as help with loan modification. Rates are low and banks are now more willing to re-negotiate loan terms than ever. Don't wait until it is too late, Call or email now. 949.350.3771.
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Kristin Devlin
(949) 350-3771
Laguna Woods Homes & Real Estate
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Kristin Devlin
(949) 350-3771
Laguna Woods Homes & Real Estate
Friday, March 28, 2008
Laguna Woods/Leisure World Residents refinance and new loans
The banks are now implementing the new conforming loan limit (from $417,000 to $729,750 in OC and LA counties). Please call for the latest rates and qualifications including reverse mortgages. 949.350.3771
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Kristin Devlin
(949) 350-3771
Laguna Woods Homes & Real Estate
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Kristin Devlin
(949) 350-3771
Laguna Woods Homes & Real Estate
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