Fannie Mae Tightens the Belt..

Fannie Mae Cheat sheet : New Guidelines Start Monday, June 2, 2008
Posted: Fri, 30 May 2008 06:40:00 -0500
This weekend, Fannie Mae is overhauling its mortgage approval system. Earning an "Approve/Eligible" is going to be decidedly tougher than in the past. For home buyers that have been in the market since January, this is not news; Fannie has been steadily trimming its serviceable market. Its changes...Read the full post at http://www.themortgagereports.com/

If you read the previous post you will see a great alternative.

My Co. Offers Great Home Buying Program

michael@valleyfinance.com
With all the bank properties saturating the market we are seeing prices at very affordable levels;hence, everyday folks can see the value in owning vs. renting. Many homes are at price levels that compete aggressively with rent. The only problem is many of the government backed loan with easier qualifying criteria is usually joined with a D.P.A (down payment assistance); 100% financing. When utilized properly this is a great opportunity for many people. Plus it moves inventory - well not so fast. Banks want conventional deals (20% down an above average credit) and shun these government back loans combined with down payment assistance (3% to 6% sell participation). This means the bank drops the bottom out of the price - and will not accept these highly utilized loan programs. I've been told that these offers utilized by many hard working people would be trashed regardless of the offer; simply because D.P.A was part of the deal.

(In a nutshell - we have our own resources {cash} and that is why we can make it happen so smoothly - no hocus pocus; no dog and pony show - yes; you can have win - win scenerios in bad markets; that my friend is the art of turning bad situations into growth and prosperity.)

"You can offer over 100K for the home but if you need D.PA from the asset manager [seller for the most part] the deal won't be considered.."
Nameless Realtor


My company will buy the home for the client with our cash (smooth fast clean transaction)- bring it to F.H.A codes and utilize the pre approvals from FHA and DPA. What does that mean? That means the school teacher at a Rocklin elementary school can buy that REO in Rocklin and live in the community she works.

"School teacher's don't make enough for a 500K home but a bank home offered at $260K @ 100% financing on a 30 year fixed..That's smart and good business."

Nameless Investor

It means the family of 5 can live in a home downtown near the dad's night shift. This program is awesome. We will fix the home up so it'll be turn key and it will all be kept within the loan parameters. Of course many people can go conventional, but some of these fixers at bargain basement prices can be very nice homes and great long term investments for those that could benefit from them most.

We will help you get the FHA loan with DPA because we are F.H.A approved.

You Spin Me Round, Round like a Record....

As reported by Realty Trac, the foreclosure rates continue to rise, that’s no surprise. Look at the below story not as DOOM and GLOOM, but a great buying opportunity. I was in a town called Lathrop a couple weeks ago and you'd almost think it was a ghost town; but 3000+sq ft for about $100 a sq ft and less?? What a deal. The issue with the entire inventory not moving in a buyers market is pretty clear - many banks are somewhat out of touch; just like they were out of touch in the run up, they appear to be a step or two behind in the recovery process. Some may know or may not know but once a bank takes back a home the price is reduced drastically and thus REO / Bank Owned homes become the hottest (if you can say that in this market) home(s) on the MLS and thus attracts more buyers. Homes are equal to rents and thus many people renting can afford buying - when is the last time you heard that. The issue is the down payments, and the banks inability to participate in DPA (Down Payment Assistance). Simply put DPA is when the seller gift's the buyer 3% to 6% (does not have to be paid back) and the buy is then able to utilize FHA loans etc. Banks may be wise to look at metrics of length of RENTAL HISTORY and Monthly Rent Payments plus credit history. Many people are being left out of one of the best buyers market in years. If you’re looking to buy and are getting rejection after rejection utilizing government back loans from FHA that is coupled with DPA contact me (michael@valleyfinance.com) and I can get your FHA loans accepted with DPA.

"The total number of U.S. properties with foreclosure activity in April was the highest monthly total we've seen since we began issuing the report in January 2005," said James J. Saccacio, chief executive officer of RealtyTrac. "Although only about 2 percent of households nationwide are in foreclosure, these properties contribute to already bloated inventories of homes for sale, and put downward pressure on home values. Areas of California, Florida, Nevada and Arizona continue to be particularly hard-hit. Property tax bases are eroding, putting municipal budgets in peril. For example, the city council in Vallejo, California - part of a metropolitan area with a foreclosure rate that ranked sixth highest in the nation in April - last week voted to have the city file for bankruptcy."

Nevada, California, Arizona post top state foreclosure ratesDespite a 5 percent month-over-month decrease in foreclosure activity in April, Nevada continued to document the nation’s highest state foreclosure rate. One in every 146 Nevada households received a foreclosure filing in April, 3.6 times the national average, and the state’s foreclosure activity was up 95 percent from April 2007. California posted the second highest state foreclosure rate in April, with one in every 204 households receiving a foreclosure filing during the month. Foreclosure filings were reported on 64,683 California properties in April, down less than 1 percent from the previous month but still the most of any state and an increase of 112 percent from April 2007. With one in every 242 households receiving a foreclosure filing in April, Florida documented the nation’s fourth highest state foreclosure rate. Foreclosure filings were reported on 35,264 Florida properties during the month, the nation’s second highest total. Florida foreclosure activity increased nearly 17 percent on a month-to-month basis and 146 percent on a year-over-year basis. California and Florida cities account for 9 of top 10 metro ratesSix California cities documented foreclosure rates that ranked in the top 10 among the 230 metropolitan areas tracked in the report. Merced took the top spot, with one in every 66 households receiving a foreclosure filing during the month, followed by Stockton at No. 2, Modesto at No. 3 and Riverside-San Bernardino at No. 4. Other California cities on the list were Vallejo-Fairfield at No. 6 and Bakersfield at No. 8.

They are still working on the light at the end of the tunnel...

(If you look close you can see the light at the end of the tunnel being worked on..)

Last week, the House, including a fifth of Republican members, passed a bill that would allow some homeowners to refinance loans through the Federal Housing Administration if their lenders agreed to take 85 percent of the amount borrowed. President Bush promised to veto the bill.

Here's how the political team at Goldman Sachs sizes things up:
The House passed legislation that aims to refinance troubled mortgages and increase demand among first-time homebuyers. The President has threatened a veto. Nevertheless, federal intervention still appears likely. Although some recent data have exceeded low expectations, housing continues to worsen and consumer sentiment is poor. Politicians have taken notice. Most importantly, the policy differences aren't as large as rhetoric implies. Enactment of these proposals could marginally soften the decline in home prices, by reducing the number of foreclosures and increasing demand among first-time homebuyers. It could also reduce the downside risk to mortgage-related losses, but at a potential cost to taxpayers.

(And)

Last Thursday the House approved H.R. 3221 by a vote of 266 to 154, more than a dozen “yes” votes short of the two-thirds needed to override a veto. This is important because President Bush threatened to veto the bill last week.

H.R. 3221: Foreclosure Prevention Act of 2008

Good Homes for 200K to 300K

(Read how paradise provides maximum value for the dollar below)
Living The Dream In America

(The sign reads - Aloha, slow down

your in Molokai)

Read more about this near end of posting - Molokai, Hawaii ---->

Many people say, "We will never be able to afford a DREAM home." I tell them - your looking in the wrong area. If you look around the country some areas are ripe with large homes, on large lots for small prices. I have seen nice homes under 100K on 1 or 2 acre lots. Some people nearing retirement say they are nervous about the cost of living - I tell them sell your California home and pay cash for something in the southeast. Of course in the south east your going to get a slower pace of life, peace and quite, low property tax, less crime and cleaner air, a lot of lakes, ponds and rivers to fish and pass the day. I enjoyed living in the south because the people were so friendly and nice. 3 times I moved in 10 years and guess what? Each time I moved the neighbors brought me a cake and welcomed me to the neighborhood. I have lived in my California sub division at triple the price (no I am not upside down), smaller home, smaller lot and I'm not sure what my neighbors name is...Imagine if you didn't want all this space and were a single person - imagine what you could get a 1000 sq ft for? Under 100K..In essence here is a common person retirement plan. Sell your California home - pay cash for your retirement home in the southeast and pocket the difference in the fund of your choice. Something is "right" when people say "good morning" at the local post office, something is "right" when one neighbor helps another, something is very right when you can live a dream and have money left over. Who wouldn't love buying groceries from a neighborhood store (farmer) vs. a big box? Having run a business in the south I can also say the work ethic is second to none. I suppose the cost of living is so high in California people are focused on work, work and work that no time is left to live, live, and live. 200k- 300K; that is the 10 year equity difference in many higher priced markets.
Equity difference = cash money on your next home? You don't have to live with the traffic, the crime, the high cost of living, but I suppose we being creatures of habit would rather stay put then take action to force a change.

$249,000
Bennettsville, South Carolina

This historic built in 1904 has 5BR/2.5BA with 4800+/- sq ft and is a licensed Bed & Breakfast. The home features beautiful stained wood throughout, wainscoting, stained glass, front and rear staircases, and zoned heating and cooling. The home also has a detached double garage and pool with deck. Click here to see some more nice photos. Plus this home is on over an acre... Bennettsville is about 30 to 45 min from heavy metro area Charlotte. Bennettsville is not trailor park, Bennettsville is very nice.
$285,000.00 Hartsville, SC

Remarks: SELLER WILL PAY $3000 TOWARDS BUYERS CLOSING COSTS!! Custom design & custom built home. Newly painted interior & new carpet. Built in bookcases, entertainment center, wired for sound downstairs, large pantry, shared fireplace between den & kitchen.

4 bedroom 3 bath 3200 sq ft

$299,000.00 Florence S.C

Remarks: Beautiful home with lots of living space. This house has 6 bedrooms and 4.5 baths on a .46 acre lot, recently renovated with tile, paint and hardwood floors -


Molokai, Hawaii $289,000

Very neat and clean plantation style home. Large landscaped and fenced yard with fruit trees. Centrally located in Kaunakakai Town. Walking distance to shops, community pool, hospital and elementary school. 3 bedrooms and 1 bath within main house.

Molokai is one of the most wonderful places in the world. This small island is a simple 5 min plane ride to Maui, a few extra min. to any of the other island(s). If you hate crime, love great weather, enjoy bird watching, living Hawaiian culture consider the islands. Yes, many homes are in the multi millions in prime locations in the Hawaiian Islands - but some of the less populated islands and areas provide living environments that are truly priceless. This is one of the reasons I love [American] Real Estate, truly special homes in special places because of the special people - and not becasue of the size of the homes, the cost of the homes. It would not suprise me if you never saw a STOP LIGHT (becasue the last I knew - Molokai has no stop lights)- Molokai is like that - a small island in the huge Pacific with a friendly culture - what a place.

Here are some more pictures of Molokai - so if your thinking you want to skip out of the rat race or retire or just get back to living for a living vs. working for a living

you don't need to travel clear across the globe to remote islands - Molokai is a (somewhat) short plane ride from the west coast of the United States. Paradise, the good life and LIVING FOR A LIVING can still be had for far less then a King's ransome. Click here and see the Molokai Cowboy Connection - what could be better in Paradise then horse riding on a ranch with the south pacific being your back drop. Surreal? Indeed - rememebr its paradise....

Former Major League Baseball Player

Mr. Canseco, a one-time American League most valuable player who ignited controversy by later admitting he used steroid , writing a book about it and then being the individual that name names, and thus a major performance enhancement drug era is exposed in full light.

Canseco told the syndicated TV show that he walked away from his $2.5 million, 7,300-square foot home in suburban Encino (18011 Karen Drive in Encino) because it didn't make sense to continue making payments. "I do have a judgment on my home and it to me is very strange because it didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else," he said in an interview that aired Thursday.
"You know my life, this financial thing, is a very complicated issue. Obviously, when you make all that money, people think, 'OK, let's assume it is $35 million.' People have to understand that $35 million, you're paying the government 41 percent. That leaves you with about $17 or $18 million, not even. Then you're taking care of your whole family."
He added that a couple of divorces cost him $7 million or $8 million. The WS Journal called Canseco “perhaps one of the highest-profile homeowners to walk away from a mortgage.” The paper also noted that falling home values in Los Angeles meant that Canseco had lost “about $1 million” in equity in the house. Plus, the house had had liens against it as well.
Canseco once owned a mansion at 3823 Pine Lake Drive in Weston, Fla. He sold that mansion in 2002 for $1,550,000 to major-league ballplayer Dimitri Young, according to public records. That mansion measures either 8,331 square feet (according to public records) or 20,000 square feet (according to news accounts from the late 1990s).

Malibu Garage Sale - Everything Goes....

Click Here to few some items for sale. She’s Selling Everything!
5,000 square feet of beautiful vintage country french furniture, decorative items, chandeliers, lamps of all sorts. China, silver, crystal &
depression glass. Beautiful old linens.
Designer bedding and window treatments.
Jewelry, loads of designer clothing,
jeans, shoes and accessories. Pool side and garden furniture,
Clay and Iron Pots, Antique and recent baskets.
Old and collectable toys. Bicycles,
scooters, skateboards, fishing and snow equipment.
Off-road equipment,
tools and electronics, full kitchen, new jacuzzi tub and bathroom fixtures.
Architectural pieces.
Six passenger Gem Global Electric Motor Car by Chrysler.