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In early October of last year the Controller of the State of California released data showing that California fell more than $700 million short in initial budget plans for the year.  A slight miscalculation, an overly buoyant disposition, or perhaps just sheer ignorance; whatever the reason it is easy to see why, given the such a disjointed mindset, we took the housing bubble to a completely different level. That being said, another housing rally downward is not completely out of the realm of possibility here.

California continues to have an outrageous amount of distressed properties, with numbers for NOD’s filed in the third quarter of last year the highest they have been since Q3 of 2010. Much of this is due to the banks moving forward on foreclosure activity, while also stemming from the banks moving forward on their accumulation of a shadow inventory. Short sale figures have steadily been growing over the last year. Foreclosure re-sales, at 33.8 percent in September 2011, have actually fallen for the second quarter in a row. Even still, the increase in NOD’s previously noted assures that we will have more distressed sales to come, most likely sometime in spring of 2012. Additionally, the foreclosure process can take up at least to six additional months to sell a property. Once the NOD count starts getting into the 20,000 filings per quarter range, it is likely the market will start to level out.

According to the Federal Housing Finance Agency, we have no sign of home prices going up, and despite the false perceptions otherwise, most homeowners still have a mortgage attached to their home. And yet, reluctant sellers still expect peak prices for their sale even though the bubble has passed. Further indicated by the fact that the typical mortgage payment (helped along by artificially low rates) for the end of the year in the state was around $964, people can only afford so much home. In truth, a large part of cash sales are going to investors seeking out cash flow or investment properties. So let’s face it California–a 12 percent stated unemployment rate, real unemployment rate above 20 percent, a $700 million budget shortfall with likely tax hikes to follow–things are not at all looking good for home values.

Source: http://www.articlesbase.com/finance-articles/california-housing-issues-5647434.html

Both Fannie Mae and Freddie Mac will suspend evictions for single-family foreclosures and two- to four-unit properties during the holiday season, from Dec. 19 through Jan. 2, 2012. 

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

According to a Fannie Mae spokesman, “The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure.  No family should have to give up their home during this holiday season.”  

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

While the holiday moratorium is in place, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home until after the moratorium.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Although this is a nice gesture on the part of the two largest lenders in the country a recent report indicates we are a long way from being through with the foreclosure crisis.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Both Fannie Mae and Freddie Mac will suspend evictions for single-family foreclosures and two- to four-unit properties during the holiday season, from Dec. 19 through Jan. 2, 2012. 

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

According to a Fannie Mae spokesman, “The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure.  No family should have to give up their home during this holiday season.”  

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

While the holiday moratorium is in place, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home until after the moratorium.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Although this is a nice gesture on the part of the two largest lenders in the country a recent report indicates we are a long way from being through with the foreclosure crisis.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Both Fannie Mae and Freddie Mac will suspend evictions for single-family foreclosures and two- to four-unit properties during the holiday season, from Dec. 19 through Jan. 2, 2012. 

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

According to a Fannie Mae spokesman, “The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure.  No family should have to give up their home during this holiday season.”  

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

While the holiday moratorium is in place, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home until after the moratorium.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Although this is a nice gesture on the part of the two largest lenders in the country a recent report indicates we are a long way from being through with the foreclosure crisis.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Both Fannie Mae and Freddie Mac will suspend evictions for single-family foreclosures and two- to four-unit properties during the holiday season, from Dec. 19 through Jan. 2, 2012. 

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

According to a Fannie Mae spokesman, “The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure.  No family should have to give up their home during this holiday season.”  

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

While the holiday moratorium is in place, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home until after the moratorium.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Although this is a nice gesture on the part of the two largest lenders in the country a recent report indicates we are a long way from being through with the foreclosure crisis.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Both Fannie Mae and Freddie Mac will suspend evictions for single-family foreclosures and two- to four-unit properties during the holiday season, from Dec. 19 through Jan. 2, 2012. 

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

According to a Fannie Mae spokesman, “The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure.  No family should have to give up their home during this holiday season.”  

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

While the holiday moratorium is in place, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home until after the moratorium.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

Although this is a nice gesture on the part of the two largest lenders in the country a recent report indicates we are a long way from being through with the foreclosure crisis.

Source: http://www.articlesbase.com/finance-articles/no-evictions-during-the-holidays-5543239.html

AP – RALLY OVER: Stocks fell, ending a four-day rally, after regulators took action against a former Goldman Sachs subsidiary over its mortgage and foreclosure practices. Investors were also worried that a jobs report due out Friday could revive fears of a new recession.

View full post on Yahoo! News: Stock Markets News

WHY an FHA Mortgage over other Home loan options?

Why should you choose an FHA home loan?

There are many good reasons to choose an FHA home loan over other home loan options, especially if one or more of the following apply to you:

If you’re a first-time homebuyer If you don’t have a lot of money to put down on a house If you want to keep your monthly payments as low as possible If you’re worried about your monthly payments going up If you’re worried about qualifying for a loan If you don’t have perfect credit If you’re worried about what will happen if you fall behind on your payments

If any of these things describe you, then an FHA loan may be right for you.

Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price Gift for down payment and closing costs allowed. No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase  3 years after a Foreclosure. 

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

www.FHAmortgageFHALoan.com

FHA Home loans (Min 530 score)

12 month cancelled checks or Management VOR Must have 3 good recent tradelines Payment shock limited to 1.5 times 33/45 DTI max No late’s or collection in last 12 months NO late’s after BK

An FHA-insured loan offers many benefits and protections that you won’t find in other loans including:

FHA loans have Lower rates: An FHA home loan has competitive interest rates because the Federal government insures the loans for lenders. Always compare an FHA loan with other loan types.

FHA Mortgage loans are Easier to qualify: Because FHA mortgage insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

FHA loans If you have less than perfect credit: You don’t have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA loan than a conventional loan.

FHA mortgage have More protection to keep your home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, the FHA has many options to help you keep you in your home and avoid foreclosure.

FHA does not give money to people for a home and it does not set the interest rates on mortgages it insures. FHA insures loans for lenders against defaults. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (provided it is on a permanent foundation).

What types of loans does FHA offer?

Fixed rate loans - Most FHA loans are fixed-rate mortgages (loans). In a fixed rate mortgage, your interest rate stays the same during the whole life of the loan, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

Adjustable rate loans – Most first-time homebuyers are a little stretched financially, so they want payments as low as possible at the beginning. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate, again depending upon the type of ARM you choose. The advantage of an ARM is that you may be able to afford more house; because your initial interest rate will be lower, as will your payment.

Purchase – Rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get just one mortgage loan which includes the mortgage and the cost of repairs combined. The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. The advantage of this loan is that you can buy a home that needs a lot of work, but you still have only one mortgage payment, and you can complete the repairs after buying the home.

Indian Reservations and Other Restricted Lands - A family who purchases a home under this program can apply for financing through a FHA approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing. An eligible party can produce a gift for the down payment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value.

How does a FHA loan Compare to a Conventional Loan? – Conventional loans usually require a larger down payment. And, if you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees on each? What is the interest rate? How much is the mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.