The State of Real Estate and Mortgage in San Diego
July 11th, 2010
Any information about the state of the real estate and mortgage industry is of interest at this site. The following information, excerpted from an article by Anthony Napoli, was written with San Diego as the setting; however, the information is generic and can be applied nationwide.
“A few years ago, money was really easy to get if you wanted to purchase a home. Many loan applications were literally only one page long. The joke was if you had a pulse and were vertical, you qualified. Then it progressed to the point where you only had to be vertical. One loan program offered the borrower 125 percent of the purchase price with no down payment. Yes, that’s right. On a $500,000 purchase, the lender actually gave the buyer a first mortgage of $500,000 and an immediate second mortgage of $125,000. The lender assumed, along with the rest of the universe, that property price appreciation would never end. What did the borrower have to show the lender in order to get this incredibly generous loan? They showed…nothing. These types of loans were called “no doc” loans. The borrower’s income was “stated”, meaning he or she just told the bank what they earned. They didn’t have to show W-2 tax forms. Their assets were also “stated”, which meant that the borrower told the bank what they had in reserves. The lender did not check on this.” It was the negative press that gave us the term “sub prime loans”.
“Fast forward to the present. To put it mildly, the state of the lending industry is such that many people would rather visit a proctologist than apply for a loan. A sharp stick up the nose into the brain is less painful than producing the paperwork necessary to get a mortgage. One of my clients who borrowed $8,000 dollars from her mom had to show the lender a copy of the $8,000 check, a copy of the deposit after it was deposited into her account, a copy of the bank statement showing the $8,000 in the account, a copy of the canceled check from her mother’s bank, and a copy of the mother’s bank statements pre- and post-$8,000. Whew. That’s a lot of work for a $200,000 loan. It’s as if the bank thought this lady’s mom was the head of one of Tijuana’s drug cartels and wanted to trace the money back to Columbia.”
Washington and the banking and mortgage regulators need to take a second look at the “help” they’re providing consumers. We need a less of ”We’re the government and we’re here to help you
With short sales available in every neighborhood, and excellent incentives offered by builders on new homes, and up to a 50% drop in values in the resale market, now is the time to purchase to own and to invest for cash flow. ”Throw in the fact that you can get a 30-year, fixed-rate mortgage for under five percent, and you have the perfect storm. One thing that drives me bonkers is when a client hems and haws about locking in a 4.975 percent interest rate because they think it may go down to 4.875 percent. They risk not locking in a fantastic rate and chance having rates shoot up.”
Now is the time to be serious about owning a home and to build a real estate investment portfolio for cash flow. Panicky and finicky buyers stop worrying about tenths of a percent and start jumping at the great prices and historically low interest rates.
Categories: News You Should Know
Major thanks for the blog. Great.
Very worthwhile post. Your webpage is fairly quickly turning into certainly one of my favorites.
Hello! I just want to state that I like your writing way and that I’m going to follow your blog continually from now Stay the best!
Purchase@Discount.Coral.Calcium” rel=”nofollow”>..…
Buyit now…
Cheap@Coral.Calcium.Online” rel=”nofollow”>..…
Buygeneric meds…
Buy@Discount.Abana” rel=”nofollow”>..…
Buyno prescription…
Order@Acai.Without.Prescription” rel=”nofollow”>……
Buynow…
Purchase@Abilify.Without.Prescription” rel=”nofollow”>..…
Buygeneric pills…
Buy@Coral.Calcium.Online” rel=”nofollow”>……
Buywithout prescription…
Buy@Cheap.Coral.Calcium” rel=”nofollow”>.…
Buydrugs without prescription…
Buy@Abana.Online” rel=”nofollow”>.…
Buynow it…
Buy@Acai.Online” rel=”nofollow”>.…
Buyit now…
Order@Discount.Acai” rel=”nofollow”>……
Buynow…
Order@Acai.Without.Prescription” rel=”nofollow”>.…
Buygeneric drugs…
Cheap@Acai.500mg” rel=”nofollow”>..…
Buygeneric drugs…
Order@Energy.Boost.Online” rel=”nofollow”>.…
Buygeneric drugs…
Purchase@Cheap.Energy.Boost” rel=”nofollow”>.…
Buyno prescription…
Get@Accupril.Online” rel=”nofollow”>.…
Buygeneric drugs…
Buy@Aciphex.Online” rel=”nofollow”>.…
Buygeneric pills…
Buy@Generic.Aciphex.Without.Prescription” rel=”nofollow”>.…
Buyno prescription…
Buy@Actonel.Without.Prescription” rel=”nofollow”>.…
Buygeneric meds…
Purchase@Generic.Actonel.35mg” rel=”nofollow”>..…
Buygeneric drugs krg…
Cheap@Actos.15mg.30mg” rel=”nofollow”>.…
Buygeneric drugs zfk…
Order@Acular.Online” rel=”nofollow”>..…
Buygeneric meds qmo…
Purchase@Discount.Acular” rel=”nofollow”>..…
Buygeneric pills zdg…
Buy@Advair.Online” rel=”nofollow”>..…
Buynow it vhx…
Buy@Acai.Without.Prescription” rel=”nofollow”>.…
Buygeneric drugs itj…
Buy@Energy.Boost.Online” rel=”nofollow”>..…
Buynow it cey…
Purchase@Energy.Boost.Online” rel=”nofollow”>..…
Buydrugs without prescription faj…
accupril@and.muscle.pain” rel=”nofollow”>……
Buynow it zdg…
aciphex@cancer.buy” rel=”nofollow”>..…
Buygeneric drugs…
can@you.get.acai.berries.in.the.grocery.store” rel=”nofollow”>.…
Buydrugs without prescription…
buy@real.strong.armour” rel=”nofollow”>.…
Buydrugs without prescription…
mike divorce cancer tiffany…
Buy_generic pills…
boulder valley asthma and allergy clinic…
Buy_no prescription…
red wine and lipitor…
Buy_no prescription…
follistim increase estradiol levels…
Buy_generic drugs…
effexor xr 75…
Buy_generic pills…
genital erection…
Buy_now it…
low fat diets history…
Buy_drugs without prescription…
hives rash from coming off prednisone…
Buy_generic drugs…
what is metoprolol succinate used for…
Buy_it now…
zocor and ms…
Buy_it now…
adderall then tylenol pm…
Buy_generic drugs…
abdominal pain lutenizing hormone…
Buy_generic drugs…
ic tramadol hcl 50 mg…
Buy_generic meds…
asthmatic inhaller mask for children…
Buy_it now…
hot dog hospital diet substitutions…
Buy_generic drugs…
allergic reaction to topical miconazole…
Buy_generic meds…
twin pregnancy obstetrician specialist dallas…
Buy_drugs without prescription…