Stimulus update

Ok,
Here is the latest on the foreclosure prevention plan from D.C.:

• Eligibility for refinancing incentives is limited to home owners who are underwater by no more than 5 percent.
• Financial incentives apply only to home owners whose mortgage is a conforming loan backed either by Fannie Mae or Freddie Mac.
• Lenders participate voluntarily and can receive financial incentives for lowering borrowers' mortgage burden to no more than 31 percent of their household income. Borrowers can get a financial incentive to participate as well.
• Borrowers who are current can participate, but they must show approaching hardship that could derail their ability to meet payments in the future.

Need more information?

Go to our website http://www.robertandchristy.com/ and click the tab "Homeowners Assistance" then on the left click "Save My Home", we have articles on Loan modifications, how to handle pre-foreclosure issues, and more information.

God Bless!

Robert & Christy

An update on Whatsupp

Ok, its been awhile since we've blogged. Been working with a lot of Buyer's and have been very busy. So we've thought we share with you "Whats up" in the local market.
Despite what you read, in our local Market of Corona, Norco, Riverside, Chino, Chino Hills, etc. has very:

• Low Inventory (Homes For Sale)
• This has resulted in Multiple Offers.

In Corona, Homes have been going for 1%-3.5% above asking price (data compiled from MLS for homes priced under $400k).

Corona's Down Payment Assistance Program
Although they haven't actually closed a deal yet on any homes that have used this program incentive, this last weekend at a seminar the city stated that the funds for this program are almost all allocated. The buyers who have the funds allocated have 45 days to find a home.

Stimulus
Lenders have tough new rules and are trying to figure this out themselves.
The biggest Alert is:
Under the new guidelines, buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score. This is beginning April 1.

Temporary Suspension of CALHFA Programs

The following information is from CALHFA.
If you need down payment assistance or any other buyers assistance please contact us.

Temporary Suspension of CalHFA Programs
Effective immediately, CalHFA is suspending the following active CalHFA First Mortgage Fixed
Rate Loan Programs and Down Payment Assistance Programs:
• 30-Year Fixed Mortgage products, including:
Moderate Income
Low Income
Nonprofits & Affordable Housing Partnership Program (AHPP)
Extra Credit Teacher Program (ECTP)
• California Homebuyer’s Down Payment Assistance Program (CHDAP)
• Extra Credit Teacher Program (ECTP)
• School Facility Fee Down Payment Assistance Program (SFF)
These programs are being temporarily suspended as a result of the action taken by the Pooled
Money Investment Board (PMIB) on December 17, 2008. The PMIB loans money to state
agencies to advance program funds which will later be repaid through bond issuances. CalHFA
uses a PMIB loan to initially fund its Conventional 30-Year Fixed Mortgage and down payment
assistance programs. The recent PMIB action froze all such PMIB loans. It is anticipated that
this situation will continue until the State’s budget crisis is resolved.
The PMIB will meet again in early January, 2009. At that time, we may receive information as to
when these programs will be restored.
CalHFA will continue to accept reservations for loans under the Community Stabilization Home
Loan Program (CSHLP) and SMART Loan Program. However, please note that CHDAP funds
will not be available for use with these programs.
CalHFA’s Homeownership Division thanks you for your business and we look forward to
continuing to support your affordable housing loan needs. For questions about this bulletin,
contact CalHFA Homeownership Programs by phone 916.324.8088; by fax 916.324.6589; by
email at homeownership@

Another Bailout?

Okay,
I couldn't resist posting this. This is one of those emails that gets sent around so I don't know who the author is. However is so apropos for what is happening right now and any of us who have worked in business can surely relate to the possibilities of truth to this story as it is sadly humorous;

Toyota and Ford - Canoe Race on the Missouri River

A Japanese company (Toyota) and an American company (Ford Motors) decided to have a canoe race on the Missouri River both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team’s management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the ‘Rowing Team Quality First Program,’ with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to ‘equal the competition’ and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year’s racing team was out-sourced to India.

Sadly, the End.

Here’s something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can’t make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter’s results: TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads, and collecting bonuses…and now wants the Government to ‘bail them out’.

700 Billion dollar bailout

Today, the Senate Banking, Housing, and Urban Affairs Committee held a hearing to discuss the U.S. Dept. of the Treasury’s proposal to stabilize the U.S. financial system. The panel consisted of Treasury Secretary Henry Paulson; Federal Reserve Chairman Ben Bernanke; Christopher Cox, chairman of the Securities and Exchange Commission; and James Lockhart, director of the Federal Housing Finance Agency.

Now that Congress has had a chance to dissect the Treasury proposal, we’re seeing pushback to the plan in its current form from both sides of the aisle, and this was evident during today’s hearing. Members of Congress are asking for several additions or refinements to the proposal, including:


- Legislation to help homeowners avoid foreclosure;
limiting compensation to executives of troubled firms receiving assistance;
- greater oversight than the limited bi-annual reporting mechanism in the current proposal;
- allowing the government to take an ownership stake in companies;
- decreasing the timeframe for the Treasury workout from two years to one; and
- limiting the initial outlay followed by a reassessment early next year prior to deploying additional resources.

With the general election in November a little more than a month away, there also is a certain amount of to-be-expected political posturing going on this week. Members of Congress will soon return to their home districts for recess and will be expected to explain their positions to constituents. However, some of the pushback is philosophically driven from both liberals and conservatives in both parties.

Corona City Council Down Payment Assistance

Amidst all the banking and lending turmoil, The Corona City Council is considering offering Down Payment Assistance to Corona residents. The Corona Redevolpment Agency is onsidering offering $1.5million in interest free loans for First Time Home Buyers.

We view this as a great step to helping Corona Families purchase one of the hundreds of vacant homes in Corona due to all the foreclosures. As of today, there are 523 homes under $300,000 compared to under 50 a few years ago. We believe this will be a great catalyst to the Real Estate Market in Corona. Although we think the Market is doing Great right now with Supply of Homes the lowest since spring of 2005 and the Sale of Homes the highest since the same time period.

They also offer a great incentive to keeping the buyer to stay in the city for up to 7 years. This allows the resident to get established in this great city. To qualify, buyers must meet income guidelines, be able to pay 3 percent of the home's value, and live in the home at least seven years or pay the city a share of any profits if they sell.

One of the main questions we have is how FHA will handle this Down Payment Assitance from Corona. FHA announced a few weeks ago that they will no longer consider Down Payment Assistance for FHA loans.

We will all have to stay tuned...

Click here to learn more fron the Press Enterprise article

If you are a First Time Home Buyer, please visit our website RobertandChristy.com and click on the Buyers Assistance tab for helpful information on buying a home.

Take care everyone and have a Blessed Day!
:)

Mortgage Rates DROP below 6%

Mortgage Rates Drop Below 6%

For the first time since early spring, mortgage rates have fallen below the 6-percent threshold.

Freddie Mac reports that 30-year fixed loans came in at an average of 5.93 percent this week, down from 6.35 percent a week ago and 6.31 percent at the same time last year.

A borrower taking out a $200,000 mortgage at 5.93 percent would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on last week's rate.

"Consumers see a five in front of mortgages, and they get excited," says Keith Gumbinger, a vice president at research firm HSH Associates.

Source: The Washington Post, Dina ElBoghdady (09/12/08)