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Archive for February, 2011

Big Vote Thursday: The End Of Loan Mods?

February 28th, 2011 categories: Foreclosures / Short Sales, Loans / Financing, The Economy

HAMP SINKINGIf you own a home in Solano County and are thinking of applying for a loan modification under the government’s widely publicized Home Affordable Modification Program (HAMP), come Thursday you may find yourself out of luck.

For that’s when the House Finance Services Committee plans to vote  on a bill that, if passed, would signal the end the White House’s failed loan mod program.

When the HAMP program was announced by President Obama almost two years ago, there were high expectations and hopes that it would help millions of underwater borrowers restructure their loans so that they could stay in their homes with newly affordable monthly payments.

Well here we are two years later, and only about 3% of the $29 billion (yes, billion) that was allocated has been spent. Less than 15% of the Read the rest of this entry »

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Obama’s Mortgage Reform Plan: A Bitter Pill

February 19th, 2011 categories: Loans / Financing, The Economy, Viewpoint

Many years ago, another agent in my office shared a great little saying with me.

It was one that really cut to the chase with a seller who wanted to hold out Bitter Pillfor a better offer when the one they had in front of them was clearly the best they were ever going to get.

She would say: I know it’s a bitter pill to swallow…but do you want that pill now or do you want it later?

And that little saying of hers resonated with me the moment I heard about the White House’s proposed mortgage reform plan, which was announced just over a week ago.

I wrote about that plan a few days ago. In a nutshell, the Obama administration has proposed sweeping mortgage policy changes that would:

  1. Require higher down payments
  2. Drop the maximum loan amounts for conventional loans in many areas
  3. Raise loan fees to borrowers
  4. Do away with mortgage giants Freddie Mac & Fannie Mae

Making all these changes would definitely be a very bitter pill for the mortgage and housing markets to swallow right now. But if we really want to make sure we don’t have a repeat of the recent mortgage meltdown, there’s no doubt some changes have to take place.

Mortgage Reform Is Needed…But Now or Later?

We have to make sure the riskiest borrowers really have the means to own a home before letting them slip through the cracks and Read the rest of this entry »

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What Obama’s Mortgage Reform Plan Means For Solano County Home Buyers & Sellers

February 17th, 2011 categories: Buying, Contra Costa, Loans / Financing, Selling, Solano, The Economy

You may have heard that President Obama unveiled his plans to reform the mortgage industry last Friday. Since then, his proposal has taken a lot of heat in real estate circles, especially since one of his recommendations is to reduce the maximum loan limits on conventional mortgages in high-cost areas by more than $100,000 as early as this fall.

Among some of the proposals in Obama’s plan:

  • Drop the maximum loan amount in high cost areas (which includes much of the Bay Area) from $729,750 to $625,500.
  • Phase out both Fannie Mae and Freddie Mac by reducing their loan portfolios by 10% a year
  • Raise fees for borrowers
  • Increase minimum down payments borrowers

What This Means To Solano Home Buyers & Sellers

It’s still unclear whether the White House’s proposal to lower the maximum loan limit would really impact Solano County. Currently, for most of the U.S., the limit is $417,000. The majority of the Bay Area, though is at $729,750 — which is the amount that Obama’s plan wants reduced by about $105,000.

pull quoteIn Solano County, however, our limit is $557,500, which is higher than the rest of the U.S., but lower than most other Bay Area counties.

So if the White House plan reduces the loan limit for all high cost areas on a proportionate basis, then Solano County buyers and sellers could definitely feel a pinch, since buyers of homes priced above the new loan limit would be forced into higher-rate “jumbo” loans, which would no doubt kick some buyers out of the market or force some sellers to lower prices to attract conventional loan buyers.

But if the White House plan keeps our limit at $557,500, since it’s already below the proposed $625,500 ceiling, then Solano County Read the rest of this entry »

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A GIANT Celebration Tuesday In Vallejo

February 17th, 2011 categories: Fun Stuff, Local Stuff, Solano, Vallejo

Trophy Tour LogoSpring Training has already started in Arizona, but if you’re like me and are still basking in the afterglow of the San Francisco Giants’ World Series title, you’ll have one last opportunity to soak up some of last year’s magical mojo this coming Tuesday (Feb. 22) in Vallejo.

Throughout the past month, the Giants have taken the World Series Trophy all over Northern California.  Tuesday afternoon, it comes to Vallejo — its only stop in Solano County — where local Giants fans can see the trophy up close and personal and even have their picture taken with it.

The particulars:

  • Tuesday, Feb. 22
  • 2:30 to 4:30 pm.
  • Dan Foley Cultural Center, 1461 N. Camino Alto, Vallejo

Take Tuolumne to North Camino Alto and keep going — it’s at the back of the park, just across the water from Six Flags.

I actually saw the trophy a few weeks ago, when it was in Walnut Creek. We got there about 30-45 minutes before the doors were supposed to open Read the rest of this entry »

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