http://www.bloodhoundrealty.com/BloodhoundBlog/?p=1786

I love graphs.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

I found an article that explained the issue but forget where it is, google can be your friend here. The media has absolutely no clue about what is going on, a local disc jockey morning talk show host was talking about the "predatory lending ect ect" and went as far as naming one of the most unethical grindhouse mortgage brokers I can think of.

The sub-prime crisis is not really a crisis, 20% are losing their homes ---- thats bad but what about the other 80% that own a home which would not be owning anything otherwise?

The problem we are having is margin calls on conforming and non conforming notes due falling real estate values.

The people that are going to get in the ass are mortgages over the $417,000 fannie freddie lending limit despite good credit lower ltv's ect, many of them use the ARM programs and refi every few yearstoleverage their money.........guess what happens now? the money that they had @ 6% is going to adjust to 11% or they refi @ 8.5%. I warned my clients repeatedly and most of them took my advice and are in good low rate i/o's but the people that didn't are screwed because I'm the only one that they can borrow from due to diverified programs....

http://www.marketwatch.com/news/story/luminent-slumps-75-after-being/story.aspx?guid=%7B581AE629-0512-4374-81E7-4906FBA48B5B%7D

http://news.google.com/news?q=mortgage+crisis&ie=utf-8&oe=utf-8&rls=org.mozilla:en-USfficial&client=firefox-a&um=1&sa=N&tab=wn

Six Questions Consumers Are Asking About The Mortgage Market
August 10, 2007: 04:13 PM EST

It has been an eventful couple of weeks for the mortgage industry, and it is easy to see why more than a few consumers watching at home could be confused, wondering what the developments mean for their own finances.
As a result, they are asking their brokers and lenders questions they have never asked before, said Matt Vernon, retail sales executive for Bank of America (BAC).
Thanks to a number of mortgage lenders going bankrupt in recent weeks, a common query these days is simply: "Are you still out there financing loans?" Vernon said.
As uncertainty brews in the secondary-mortgage market, consumers also are becoming students on how the process of financing a home-loan works.
"Many of my clients are reading the news but not understanding how it directly relates to them personally," said Dan Green, a certified mortgage planner specialist in Chicago and author of the blog "The Mortgage Reports."
Consequently, Green has been spending more time with his clients discussing the history of mortgage lending and explaining why Freddie Mac (FRE) and Fannie Mae (FNM) exist.
Below are some of the mortgage questions on consumers' minds these days, based on interviews with industry professionals, and postings on Web logs and online discussions.
Will I still be able to get a mortgage?
One of the widest held misconceptions Alex Stenback has been hearing is the assumption that the current problems will have a negative impact across the entire mortgage spectrum. Stenback is a mortgage banker in Minneapolis and St. Paul, Minn., and author of the blog "Behind the Mortgage."
So far, borrowers with decent credit histories and the ability to document their income - "the majority of the home-buying public" - aren't being shut out from getting a loan, he said.
"Home-loan applications are still being accepted, and home loans are still being approved. The difference is that there are fewer choices," Green said in an email interview.
What is getting harder to come by is Alt-A mortgages, which often don't require income documentation. And jumbo loans - those that exceed the $417,000 conforming limit and thus can't be purchased by Freddie Mac and Fannie Mae - are getting more expensive.
"Credit cycles boom and bust over time. As soon as Wall Street figures out the current risk-reward model, (more) mortgage products will be available again," Green said.
Can I still get a no-down payment loan?
People tend to incorrectly group no-down payment mortgages together with subprime loans, Stenback said. But there are still programs that can get prime borrowers into mortgages with little or no money down to begin with, he added.
"The perception is you need money down and have to wait until you save more," he said. "It's not the case. It may be a good idea, but you don't have to."
However, no-down payment loans are now requiring "strong credit, verifiable W- 2 income and healthy assets in reserve," Green said. "Homeowners whose tax returns include large write-offs - including small business owners and 1099 employees - will have a much harder time qualifying for 100% financing."
My mortgage lender declared bankruptcy. What do I do?
Don't fret - and plan to keep making payments, said David Podgursky, a Florida-based mortgage broker and author of the "The Mortgage Go To Guy" blog.
"In fact, get ready to make your September payment as scheduled. Just keep your eyes open for your letter regarding who will be servicing your loan from now on," he wrote on his blog.
For borrowers who had loans in process at a company that is facing bankruptcy, it is important to get a new loan application started right away with another firm, Green said.
Should I be concerned if I currently have a subprime mortgage?
The above question was posed by a Denver-based real-estate agent on a Trulia.com discussion board. The consensus from the several real-estate professionals answering the question was a qualified "no."
Podgursky chimed in with this comment: "Subprime loans are not the end of the world...unless you are at the end of the term and the new adjusted payment will hurt you financially."
The holders of subprime adjustable-rate mortgages need to be aware of when the initial, lower rate on the loan will expire. By looking ahead - preferably a year in advance of the reset date - borrowers can improve their credit and consider their options so that they aren't saddled with monthly payments they can't afford, Podgursky said in telephone interview.
My certificate of deposit is from a lender that has made subprime loans. Is my money safe?
It's as safe as any other financial investment insured by the government.
Certificates of deposit are covered by FDIC insurance, as Daniel Weidman, first vice president of corporate communications for Countrywide Financial Corp. (CFC), pointed out. (Read more about FDIC coverage limits at the Countrywide Web site.)
"But from time to time, our customers inquire about this and other elements of their savings program, whether it's a CD, money market or online savings account," he said in an email.
Is now a good time to buy a home?
Every local real-estate market is unique, so the answer to that question will vary.
However, many areas throughout the country are buyer's markets, where those on the buyer's side of the table have the upper hand in negotiations, Vernon said.
The key theme, he said, is that while it may be a different mortgage landscape, it still can be a good market in which to buy - as long as people are buying for the right reasons and are paired with loans that ensure they will be able to keep the home in the future.

my parents are about to work out a mortgage for the house we are in now... with the rich relatives giving them the down payment... they totally need to not be screwed over

you know who to call.

howitzer or hatty.. I dont know who to call... autoway? dan marino?

Call Jeff. He seems to know what he is doing, I'm looking forward to doing business with him.

Anyway Jeff does that $417k limit very by region? Because the average sales price in my city last year was like $430k. $500k-$1M loans are pretty commen, lots of 30 year fixed. No one seems to have a problem.

So far knock on wood all my clients have been able to get good funding.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

http://www.fanniemae.com/aboutfm/loanlimits.jhtml

Jumbo's went in the pisser on Thursday, its short term though they will be back in line in the next couple months. 7 year ARM pricing is still acceptable but 30 your fixed jumbo pricing is plain silly. My core market is Jumbo loans and I'm sort of a super hero right now for squaring them away last month, some asked me to do it, others I did it myself and told them I already did it when they called in panic mode, I can't count how many cases of beer, wine and dinners I have been promised.

Interesting. Any thoughts on when this will all settle down? I'm thinking next year with the market starting to pick up a bit in 2009.

Inventory in my city is slightly down, we have 361 active residential listings. I'd still like to see that number in the mid 200's. But it was creeping up to 400, and now has reversed.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

All of our talking heads say 2 months-2 years realistically Jumbos not in high risk states will be back to normal next month.

Number of listings going down that is best case scenario for you guys thats what bidding wars are made of............now thats FUN!

Funny thread.

You have two people that seemingly earn their living on the housing market. So naturally, they are going to look at the possible up-side. Then you have the realists that look at the economy, trends, and growth patterns and see it as it is -- an unsustainable growth period that now needs serious corrections.

Couple this with greedy lending practices, and you have failures.

You had to figure this how it would go when the only that that has been floating our economy are artificially low (look at the emergency session re: Fed) rates to keep an fake housing boom flush.

In the end, the housing market *is* going to continue to go no place. 2008 will be more artificial rate hocus-pocus... and sooner or later the **** hits the fan.

But hey, if folks smell roses, run with it.

I see it differently.

I don't really care where the market is, I make money either way. I want the market to correct, apartment buildings are to expensive. They need to drop in value about 20%. I am trying to figure where the market is going so I can not only better advise my clients, but so I can invest better.

The currant sub prime defualts are not surprising, I know I saw this coming a over a year ago, and I'm sure Jeff did as well.

Now I'm more interested in where the bottom is and when the upturn will occur.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

It's a downturn but people still have to move, get divorced and need money its them that gets whacked not me, I don't give crap if your rate is 1%-25% I make more---in fact I do better with higher rates so bring it on. The problem that AHM has is they were NOT charging enough interest and got smoked when the money backed out.

If there is a greed problem its the lack of greed that is depressing the bond market.

Yep, just like the late 70's.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

and late 80's and middle 90's, so on and so on.

don't let anyone fool you this is a weeding out phase where the weak go back to piss ant jobs while the strong stay strong. Personally I dodged the bullet and dumped inventory before any of this stuff was brewing. I moved into the finance so I can get it coming and going.