Short sales, however, are slightly different.

FNMA hasn’t changed the 3-year foreclosure guideline for about 18 months now. That much we knew. Short sales, however, are slightly different. We read in the underwriting guidelines that if you had a short sale on your credit you could be approved for a loan after two years with good re-established credit. Now, we know that investor guidelines are looking at “Short Sales” on credit as needing 3-years after completion to be eligible.

Fair Isaac, the credit reporting company, doesn’t have a specific category for short sales, but it does show on the credit report that the loans were settled for less than balance or “shorted”.

It is possible for the bank to report it differently such as “paid in full” negotiate with the bank on how they will report it and it doesn’t mean that it will report it that way every single time.

· Fed Cuts Possible Tomorrow?
· Property Taxes too High?
· See the newsletter below.

Mortgage Bonds are soaring higher

Mortgage Bonds are soaring higher on this weekend’s announcement that Fannie Mae and Freddie Mac will come under control of the government.

The government’s move to create a line of $200 billion to back all Fannie Mae and Freddie Mac loans at all costs is great news for homeowners. First, it ensures the continued liquidity of conforming loans nationwide and, second, it ensures that buyers of this type of Bond have a safe investment going forward. There’s no doubt that this will help the US housing market move through the current crunch that we’re in.

So far this morning, the news has lead to a nice rally in pricing. When combined with the break above the 200-Day Moving Average, this may lead to attractive rates. Therefore, I recommend floating for now.

Clients & Friends,

Happy Friday! Please don’t forget to RSVP for the event on Monday morning at 8:30am. RSVP at The flyer is attached. Thank you if you’ve already RSVPed. I’ve got your seat reserved.

Market Update

New Home sales for June were reported at 530,000–which was far better than expectations of 505,000. In addition, Orders for Durable Goods came in well above expectations and the Consumer Sentiment Index shocked the markets with a very robust reading.

The positive readings are helping to strengthen the US Dollar and even lower Oil prices. As a result of these shifts, a Fed rate hike may be on its way in within the next few months–though probably not at next week’s Fed meeting.


Do you have a listing that needs repair to be habitable or comply with lending guidelines? Do you have a buyer looking at a property that needs some serious help?! Ask me about REHAB LOANS to get your buyers the homes the want and the financing they need to turn a junker into a castle. Ask me how it can be done.

Market Update

Crude oil futures jumped almost $5 per barrel this morning to hit a new high over $147 per barrel. The sharp rise is due to increasing tensions in the Middle East between Iran and Israel, as well as rebel threats in Nigeria and a planned strike of oil workers in Brazil next week.

I’ve had several questions about Fannie and Freddie Mac today. See the article below.

Bear Stearns bailout

I hope you had a relaxing Easter weekend. This weeks update covers the news about last weeks Bear Stearns bailout. Ever thought about the Pros and Cons of buying a car versus leasing one? This week’s update covers it all! Also, just in case you didn’t get a chance to read why new mortgage rates go up after a Fed cut see the attached article.

I’d like to address one topic today. Have you ever noticed in the Desert Sun that many of the articles are written by the Associated Press? Ask your clients who wrote the articles they are reading and quoting and ask them if it’s a nationally related article or a local article. You may be surprised!

California is considered to be a declining market

Look at today’s rate sheet! Rates are low, low, low!

There has been a rather substantial change this week to mortgage lending and our industry as a whole where Fannie and Freddie Mac are changing their credit policies and changing the low to value requirements for borrowers. These changes are based on the purchase price and not the appraised value. Loan to value is being slashed by 5% right off the top. What this means is that Fannie and Freddie Mac, the only people buying mortgage backed securities, are saying that the programs borrowers qualify must to be reduced by 5%. For example, if the loan to value was 80% the LTV must be reduced by 5% to 75%.

I am not telling you this to be negative, but it is a reality of the current market. The state of California is considered to be a declining market and applies on a case by case basis, but call YOUR lender to get more information. Below I have included a link regarding this information. Please call me with any questions and I’ll do my best to answer them.

I am NEVER too busy for any of your referrals! Have a wonderful weekend!

Lowest Rates in 25 Months

Lowest Rates in 25 Months
We couldn’t have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years. That’s right. For those of you who have been patiently waiting, here’s your chance to save anywhere from $5,000 to $7,500 or even more on the mortgage financing you’ve been looking for. Do not miss this great opportunity to cash in on the lowest rates since October 2005.

Here’s why you should act now:

Monday saw the lowest 30-year fixed interest rate in over two years. However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn’t stop, climbing over 0.50% in the months that followed!

Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.
The amount that a borrower could be forced to pay, even if they’ve never been late on a payment, could be as much as 2.00% in points or an interest rate that’s 1.00% higher than the going rate.

On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.

Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year, but only if you act fast!

Call me today for a FREE loan evaluation to determine what we can do to help you improve your financial situation before these great rates disappear.