December 9, 2011

Comments Off on This Too Shall Pass


Foreclosures, Mortgages

This Too Shall Pass

You have exactly four options if you are underwater on your mortgage.  They are as follows:

  1. Modify your loan (hopefully it is not serviced by Fannie / Freddie)
  2. Attempt a short sale
  3. Stay and pay
  4. Walk away

And that is about it.  Of course, if you live in a very desirable area, you have a good chance to sell your property to a foreign investor looking for a visa.

But that is really like looking to make a Hail Mary your bread and butter strategy in your playbook.

There are some very good reasons to adopt any one of the strategies listed above and it is good to remember that there is no shame in opting for any one of them.

The only people involved in what makes your decision “right” is you and your family.

If you are in the position of having to choose, you are intimately aware that the old adage “nobody is going to pay my bills, so why should I care what they think” is alive and  well.  It is also very, very true.

Whatever you should decide to do, do it.  Lay it out for yourself on paper and make a decision.  The very fact that you have done so will eliminate a lot of stress in your life and provide you a feelling of progress.

The Buddhists say that we have never arrived.  That we are forever entering into and exiting from stages in our lives that may be considered good or bad.  It is time for your to begin to exit the current stage.

You are American.  It is in our DNA to pull up our boots and march forward on our own two feet.

You will find you are better for it, once you have made the decision to do so for you and your family.  This too, shall pass.

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Mortgage underwater? Here’s how to stay afloat

December 8, 2011

Comments Off on There is No Limit to Idiocy


Loan Modifications

There is No Limit to Idiocy

What happens when you get two idiots in a fur covered van?  A movie called dumb and dumber.  Very funny indeed.

What happens when you get 485 idiots in one city?  Congress, that’s who.

Case in point – the conforming loan limit.  Leading the jester parade is Robert Menendez (D) New Jersey.

What the reversal has effectively done is extend the exposure limit on Fannie / Freddie.

Moreover, one only need look at who benefits from this in order to see the machinations behind it.  Now, before you start screaming “CONSPIRACY NUT!”, hear me out.

The person introducing the repeal was the representative above.  Robert Menendez has been drinking Obama Kool-Aide for a long time.  Why is this a perfidious connection (in this context)?

Because of the Obama act of trying to jump on the bandwagon of the private sector banks who have begun to implement programs to modify mortgages that are “out of the box”.

You see, recently The President orated that he had “motivated” mortgage lenders to modify mortgages in the area of principle reduction.

The egg on his face came when he said that if congress would not act, he would.  Blah, blah, blah.

Yeah, if only he had done something a year ago when there was no election looming and it had become painfully clear that his HAMP program has been a dismal failure by private sector comparison.

Fast forward one year to 2011 and said looming presidential race for 2012.  You see, this time he will to run on his record.  How is this connected?

Mr. Obama controls 95% of the mortgages in the country and Fannie / Freddie policy is to not modify mortgages through principle reduction.

This means that if the conforming limit was reset at a lower rate than when a mortgage was originally written, there would be no way to refinance the mortgage because it would be well outside of underwriting and risk guidelines.

Therefore, he needed to reset the conforming limits or, repeal the adjustment made Oct. 1, so that his self aggrandizing program for refinance would work.

It is not a question of whether this is the right thing or the wrong thing to do.  In fact, it is the wrong thing for many reasons.

The truth is that it should have only been adjusted for those people currently holding a mortgage.  That aside, the question is what motivated him to act.

The conditions affecting the American People have not changed.  What has changed is his situation and the fear of being a one term president.

I personally believe that ship has sailed for him anyway.  But as an independent, I am stating emphatically that he has acted in this case in his own interest.

Furthermore, the increase on the limit is a foolish thing to do on a wholesale basis. Why?  Because it allows for new exposure at levels the American People cannot afford to absorb.

But that’s just me.  Who am I, anyway…

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Senate backs plan to help Americans buy homes

December 7, 2011

Comments Off on The Worm Turns


Buying Real Estate, Housing Market Stats, Miscellaneous

The Worm Turns

Whatever you have heard about the death of The American Dream is absolutely erroneous.

Well, as long as you aren’t American.

Huh?  Yeah, the foreclosure inventory in highly desired areas is being bought up by foreign investors.

And hey, it’s not all that bad. The President did tell Joe The Plumber that he thought that “we should spread the wealth around”, remember?

Okay so that’s a sarcastic shot at The President.  The truth is, that congress is really to blame for this one.

The new program is aimed at attracting foreign investment by granting a Visa to international buyers who are willing to plop down a minimum $500K for non-commercial real estate.

It is intended to spur the housing market even further than the small boost it has already received from such investors in areas such as Miami Beach, Florida.

Over the past 12 months, off-shore money amounted to $82 billion that was directed at residential real estate.  That was a 24% increase from 2009 and it represents about 85 of all US sales.

That is a huge chunk of the market and it provides you some insight into who outbid you on your dream home with that cash offer that was $25K less than yours.

Depending on what end of that stick you are holding, this could be a good thing or a bad thing.  And part of the deal for that precious US visa is paying cash.  In return, they get a 3 year stay.

And the trend is likely to continue.  You see, whenever you plan a vacation, it is always a good idea to visit a place where you have favorable exchange rates on your dollar.

It is no different for foreign travelers looking for the same deal and it does not appear that the dollar will be strong anytime soon.

Yes, the worm has turned, indeed.

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Foreign buyers scooping up U.S. homes

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