| Mortgage market not new, some say
NEW YORK -- While the disruption roiling the mortgage financing industry may seem like panic, some market veterans say it is actually a return to normal following a period of excess. Without trillions of dollars in easy money pouring into bonds backed by mortgages in the last few years, many of the lenders going bankrupt this year would never have thrived. And the American consumer never would have grown accustomed to a market where someone with a spotty credit history and no verifiable income could borrow lavishly with little or no down payment. "There is a little bit of rationality returning to the markets," said Richard Bookstaber, a former risk manager at a number of Wall Street investment banks. Bookstaber is author of a book called "A Demon of Our Own Design," which argues crises like this are inevitable because of the way markets are structured.
Agriculture and Rural America lost on credit provisions
Last night (July 26), U.S. agriculture and rural America lost. The House of Representatives approved by voice vote an amendment to strip provisions that would have strongly supported Congress' renewable fuels goals and provided new growth opportunities for agriculture and rural communities. The passage of the Frank/Bachus amendment means less capital available for renewable energy, fewer competitive mortgage options for moderately-priced home buyers in rural communities, and fewer opportunities for lower-income Americans to utilize USDA's guaranteed loan programs. All of this was brought to you by the vitriolic and disingenuous opposition promoted by an entirely self-interested banking lobby.Ironically, this vote came on the very evening the stock market dropped more than 300 points, largely on news that home mortgage financing and credit for new business ventures are rapidly drying up.
The mortgage crunch bites even the rich
Mortgage woes have moved upstream, landing even in tony neighborhoods. The credit crunch now is hitting home buyers from all walks of life, not just subprime borrowers with poor credit. That in turn could mean fewer buyers -- and lower prices. For instance, a multimillion-dollar deal in Larkspur went belly-up last week when the lender yanked the financing at the last minute. "Everything was perking along smoothly. All contingencies were removed," said Bill Hogan, a Realtor with Coldwell Banker in Greenbrae, who sold the four-bedroom home for $2.45 million and expected to close the deal later this month. "The loan was approved and locked in. People were ordering moving trucks, everyone was feeling euphoric." On Thursday, the couple buying the house learned that their lender was rescinding their loan because they were making only a 10 percent down payment.
What's the difference between mobile, manufactured and modular homes?
Some mystery surrounds the financing of mobile homes vs. manufactured homes vs. modular homes. While completing a mortgage loan for a family, I stumbled upon the following guidelines. These clearly are the best I have seen in defining the difference. For definition purposes: .
Foreclosure rates remain high in Florida
TALLAHASSEE, Fla. (AP) -- Florida continues to post one of the highest home foreclosure rates in the nation. In July, Florida recorded more than 21,000 filings for foreclosure -- second only to California. For the year to date, Florida has had more than 111,000 filings and analysts predict the troubling trend will continue another 12 to 18 months. The Florida Bankers Association blames much of the problem on adjustable-rate, subprime mortgages that were available in recent years. Spokesman Alex Sanchez says that kind of creative financing often went to people with weak credit. Sanchez says too many people got into homes that were over their heads and they should not have been given credit in the first place. Nationwide, there have been more than 600,000 foreclosure filings this year.
Mortgage crisis hits even affluent Palo Altans
Even affluent, good-credit-risk Palo Altans are feeling spinoff effects of the national and international collapse of the subprime mortgage market. Local experts said Friday that even the financially fortunate are not immune and that the subprime collapse may even affect the venture-capital market and hence start-up businesses. "Even if you have great credit and make a lot of money, it's becoming more difficult to qualify for a loan," Chris Iverson, an agent with Keller Williams Realty in Palo Alto, said. During the earlier real estate boom, the numbers of investors with poor credit financing mortgages with subprime loans, whose interest rates can skyrocket after a year or two, increased dramatically. As the housing boom decelerated, many defaulted on now-high subprime payments, leaving the American subprime market damaged and European investors shaken.
Lenders cut back on zero-down mortgages
In the latest sign that the nationwide credit crunch is worsening, lenders are saying no to borrowers who want no-money-down mortgages. The popular financing option which requires no down payment and finances 100 percent of a home loan is being scrapped or strictly curtailed by lenders across the United States. .
Stockton Foreclosure Rate Highest In Country
Stockton now has the highest foreclosure rate in the nation, more than 8,000 foreclosures for the first part of this year, which is one foreclosure for every 27 households. This is a 256 percent increase compared to the same time period last year. Much of the reason is blamed on low-interest financing to first-time homebuyers. "If you have a small loan in the range of $200,000 or a loan in the range of $500,000, those payments can jump anywhere from $150 on up to $1,000 a month," said Bryan Laber of Compass Mortgage. One foreclosed property in north Stockton has been on the market for 208 days, it's dropped in price from $304,000 to $233,000, a $71,000 price difference. The foreclosed homes often bear the telltale signs of dried lawns or boarded-up windows.
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