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Housing News: November 2, 2009 November 2, 2009

Posted by John Watch in AccuriZ News, AccuriZ Reports, News Feed.
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http://online.wsj.com/article/SB10001424052748703790404574471683619819154.html?mod=djemRealEstate

http://themortgagereports.com/2009/11/how-long-do-mortgage-rates-last.html

http://www.biggerpockets.com/renewsblog/2009/11/02/real-estate-stimulus-golf-carts-government-credit/

http://www.smartmoney.com/investing/economy/why-us-does-not-need-more-home-buyer-perks/?ref=patrick.net

http://seekingalpha.com/article/170419-how-bloomberg-fabricates-u-s-housing-numbers?ref=patrick.net

http://www.thenation.com/blogs/edcut/489583?ref=patrick.net

http://www.newsweek.com/id/220080?ref=patrick.net

 

Mortgage Delinquencies Rising September 30, 2009

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The housing market needs mortgage assistance. As we push towards recovery, the rising delinquency rates from borrowers remains the elephant in the room. Today’s news of Fannie and Freddie Delinquencies Moving into Uncharted Territory highlights this point. According to the article, the delinquency rate in single-family home loans backed or held by Fannie Mae crossed over 4% in July for the first time. Freddie Mac reported a rise to 3.13% in August. As loans approach recasting for many borrowers – especially borrowers with “Alt-A” loans – potential recovery in the market will dampen.

This Mortgage Assistance Program looks to curtail rising foreclosure rates by keeping homeowners in their homes. If structured correctly, homeowners can sustain a monthly mortgage payment. Here is an example of how it can work:

• Mr. and Mrs. Z have a mortgage payment of $1,170 ($200,000 loan with 30 year payout at 5.75% interest).

• The Z’s lose their job and can only pay $470, so the government pays the difference of $700

• The Z’s remain homeowners and work through their problem. It takes the Z’s 10 months to get back on their feet, the government paid out $7,000 and now the Z’s owe the government.

• But the government says okay, you can start paying us back in seven years and the payment will be over 10 years at an interest rate of 3%.

See the rest of the Program here. While there are some obstacles to overcome with this program, it can be done.

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Housing Market News: 9/24/09 September 24, 2009

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For statistical analysis on property data from public records and valuation click here.

The Housing in Crisis Report

Senate Version of Cap and Trade will Pummel Real Estate Market

Mortgage Assistance Program directed to Homeowners

The Crisis of Public Management

Where is the Real Estate Market Today?

What Does the Fed’s Statement Mean for Mortgage Rates?

Sales of Existing U.S. Home Probably Climbed As Prices Fell

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Housing Market News: September 21, 2009

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For statistical analysis, and property data from public records click here

Credit Policies Still Threaten Recovery

Stability for the Manhattan Market in Fruition

FHA New Lending Standards for Mortgages and Home Refinances

The Cyclical, Seasonal and Emotional Aspects of Real Estate

Low Expectations for Mortgage Help Program

Mortgage Assistance Program for Homewoners

Debate Ranges About Real Estate’s Future

Housing in Crisis: What Happened?

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Housing Market News: 9/18/09 September 18, 2009

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For property data from public records, statistical analysis and market reports click HERE.

Toll’s CEO Sells More Stock

Where is the Market Today? Cyclical, Seasonal and Emotional

Clock ticking on first-time homebuyer tax credit

The Bulls and Bears of Real Estate

NY Real Estate Market Continues Rapid Decline

The Homeowners Mortgage Assistance Program

No Easy Exit for Government as Housing Market’s Savior

The Housing in Crisis Report

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Should the $8,000 Tax-Credit be Extended? September 17, 2009

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On track to cost the government $15 Billion, the $8,000 Tax-Credit implemented last winter has undeniably stimulated the housing industry. Now, with the November 30th deadline looming, questions on whether the housing market can survive without it are surfacing.

With Real Estate being Cyclical, Seasonal and Emotional, the cyclical Tax-Credit boosted seasonal sales, causing an emotional stir in the market. The plea, led by the NAR, is looking to extend the credit through next summer, expanding it to $15,000 and making it available for all buyers. If extended, the damage would amount to between $50 billion and $100 billion.

As mentioned in our Manhattan Condo article, we see signs of recovery in the market. An extension on the tax-credit would only ensure this fact. Due to the exclusivity, many homeowners looking to trade-up were unable to benefit. An allowance of the credit to all buyers would leverage the declining larger homes market, as the current credit has first-time buyers looking more towards mid-level and starter homes. While declines are epxceted during the winter seasons, an extension of the credit could curtail this fact. Also, more construction creates employment and consumer spending is helped with furniture and home fixture needs.

But this summers’ housing numbers were certainly dependent on the credit, causing an emotional high that, all things considered, is artificial. While no one would like to see any declining numbers in the housing industry, we must not forget about the factors that created the recent housing bubble along with its subsequent burst. As stated in the Housing in Crisis Report, overbuilding in specific areas and easy lending manufactured a bubble without the proper demand and financial security of homeowners to sustain it. At the end of 2008, property data from public records indicated an excess of 5 million homes on the market, a number that needs to be corrected severely.  An increase to $15,000, with mortgage rates now under 5% could possibly lure buyers otherwise unable to afford a new home with mortgages they can’t afford. Overbuilding would likely continue, and the steps to propping up another bubble would be in place. Also, could taxpayers afford to lose another $100 billion?

What do you think should happen? Whether there is an extension or not, the government cannot provide the credit forever; it will have to end eventually. The question is, what will happen after that?

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Housing Market News: 9/17/09 September 17, 2009

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Image Courtesy: housingmatters.info

For property data from public records, statistical analysis and more click HERE

Homebuilder sentiment up again in September

Real Estate is Cyclical, Seasonal and Emotional

NY Leads Nation in Mortgage Fraud

Square Footage Matters: NYC Median Price Differentials

US Economy Showing More Signs Recovery is Underway

Mortgage Assistance Plan designed to help Homeowners

Lawrence Yun speaks on Extending Tax-Credit

Housing in Crisis: What Happened?

FDIC Packages Loans from Failed Banks

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Mortgage Assistance? FDIC Encourages Forbearance for Unemployed September 16, 2009

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The Federal Department Insurance Corp. has recently encouraged acquirers of failed banks to offer forbearance to

Image Courtesy: Eurosilex.com

Image Courtesy: Eurosilex.com

unemployed or underemployed borrowers through a new program. We will take a look at this FDIC program and compare it to the AccuriZ Mortgage Assistance Program (MAP) created months prior.

This FDIC initiative –available to institutions that have acquired failed banks through loss-share agreements with the FDIC – is requiring only a portion of monthly mortgage payments from borrowers for up to 6 months. As a result, unemployed borrowers can find jobs, and banks aren’t forced to foreclose with a portion of payment still being received.

The AccuriZ Mortgage Assistance Program, if initiated, would allow homeowners owning no more than one property who are unable to afford a full mortgage payment to pay a reduction, with the government covering the difference to be reimbursed in 7 years. The repayment would be over 10 years at an interest rate of 3%.  Up to $25,000 could be provided in a year, with a $50,000 cap for 36 months. Click HERE to see additional benefits.

Although the FDIC program is a positive effort with good intentions, a 6 month cap for unemployed borrowers is highly optimistic given the current state of the economy. Also, given the requirements and eligibility, the FDIC program would not have the significant impact in overall homeowner assistance as HAMP is trying to execute. More foreseeable problems and concerns over impact can be seen HERE.

Some drawbacks to the Mortgage Assistance Program would be the Application Filings and Processing. Possible solutions for these problems can be seen HERE.

Whether the FDIC program will follow through with its good intentions if initiated remains to be seen, but it’s good to see institutions attempting to weather this foreclosure storm any way possible. The AccuriZ Mortgage Assistance Program has its obstacles, but with a focused effort could very well be implemented.

Gives us your thoughts and opinions on the two. We only fail if we do not try.

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Housing Market News: 9/15/09 September 15, 2009

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Home Sales Picking Up on Long Island

Where is the Market Today? Cyclical, Seasonal and Emotional

Rent-to-Own your home: Pro and Con

The Bears and Bulls in the Market

One Year After, What About the Impact on Average People?

A Mortgage Program to Directly Assist Homeowners

American Held Hostage by Large Financial Firms

Square Footage and Median Sale Price: Differentials?

Your House: Just A Home

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Housing Market Wrap-Up September 11, 2009

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More Home Sellers Cutting Prices

How To Read Between the Lines of Real Estate

Housing Bottom – Oh Really?

Enroll into AccuriZ and Receive a Free Trial

Foreclosure Stabilize in August, but Borrowers Still Late

Housing In Crisis

Insiders at Toll Brothers Continue to Dump Shares Ahead of Reported Housing Recovery

Mortgage Assistance Program

Real Estate is Cyclical, Seasonal and Emotional

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