Mortgage Blog

Good News for those considering investing, buying or selling! Sales volume is up in most areas of the Inland Empire as previously unaffordable homes are now within reach.  Families are entering the market seeking affordably-priced homes and finding lots of great opportunities in a market now flooded with REOs. And, of course, an increase in demand foretells of future price appreciation.
 
Click on the link below for a great article on the State of the Inland Empire Housing Market by regional economist Dr. John Husing.

Quarterly Report

The Senate passed "housing rescue bill" may into effect on October 1, 2008.

Here are some KEY provisions of the law:

1. Qualified borrowers may be eligible for the "rescue" package if they have at least 31% of their gross monthly income on mortgage debt.

2. They can be up to date on their mortgage or in DEFAULT, but in either way they must prove that they will not be able to keep paying their existing mortgage payments.

3. The existing mortgage lender will have to voluntary agree to write down the current Note amount to 90% of the NEW value of the home (appraisal will be ordered).

4. If there is a 2nd mortgage the lien has to be satisfied by the borrower's.

So, if all the criteria above are met; the borrower(s) new mortgage payment can be significantly lower!!!

On Tuesday Indymac began dismantling most of its business amid heavy losses from mortgage defaults. IndyMac was one of the largest federally insured financial companies to fail and is now one of three (Countrywide and Bear Sterns) large banks to fall short of expectations in the ongoing subprime mortgage crises.

On Friday, Federal regulators stepped in and seized IndyMac It will reopen fully on Monday (July 14) as IndyMac Federal Bank under Federal Deposit Insurance Corp supervision. They will also reduce its work force by 53% to about 3,400 and stop making most types of mortgage loans.

There have been 266 financial institutions that have gone out of business since the mortgage market crises. This is due to unethical practices and risky loans. We have been in the business for 20 years and are a HUD-approved lender (US Department of Housing and Urban Development) If you’re having a problem getting questions answered, help or qualified do not hesitate to call Ray Adams – Your Mortgage Geek.

Home Funding Corp. has received Unconditional Direct Endorsement Approval from the Federal Housing Administration. This designation as a "Full Eagle FHA lender" means the bank can now originate, fund, hold, service, purchase and sell FHA-backed mortgage loans.

The big thing for a borrower about the Full Eagle designation is that it streamlines the mortgage process for applicants. Becoming a full Eagle lender makes us stand.

There is a popular misconception that FHA-backed mortgage loans are for people who have poor credit or low incomes. There really are no income restrictions and a only few guidelines on credit for FHA loans.

An FHA mortgage can also help people who do not have sufficient money to put down on the house. Saving enough for a down payment is a major deterrent to home ownership, especially in California. FHA-backed mortgages can help people get into a house with as little as three percent down.

Measure seen to bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties.

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.

"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. "The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country."

FHA's new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It's reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property "flipping," a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA's new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.