Loan update for Sedona Real Estate - March 2008
Published by Rick on Tagged Home Buying, Mortage Rates, Sedona Market Trends, UncategorizedMy weekly email from Chris Seymour of Country Mortgage had something to say about the state of the market for loans and Real Estate in Sedona. He stated:
“One huge fact right now is that the spread between rates on mortgages as compared to rates on US treasury securities is the widest in history i.e. as rates have dropped in the bond market, mortgages have not followed. I believe they will eventually consolidate into the low 5s by spring. The Fed is expected to drop the funds rate by. 50% to 2.50% so prime rate will drop to 5.5% (still too high) and help home equity lines and ARM indexes. Longer term rates, 10 yrs and longer, are stubbornly high due to increasing inflation concerns. As the fed pumps the money supply, home values will rapidly find a bottom and start to recoup recent declines. There is no doubt that this is the time to start looking for deals.”
One Response to “Loan update for Sedona Real Estate - March 2008”
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April 16th, 2008 at 7:15 am
I disagree. In fact, on March 31, Fannie Mae sent out new guidelines to lenders intended for walkaways and other foreclosure situations. Fannie will now prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years, unless there are “documented extenuating circumstances.” In those cases, the mortgage prohibition is for three years.
Even after five years, borrowers with foreclosures in their files will be required to make at least a 10 percent down payment, and will need minimum FICO credit scores of 680.
Freddie Mac, Fannie’s rival, counts foreclosures as major credit blots for seven years, and a senior official said the company is now aggressively pursuing some walkaway borrowers “to preserve our deficiency rights” where permitted under state law.
The walkaway trend is particularly noteworthy in former housing boom markets - including California, Florida and Nevada - where many homeowners find themselves upside down on their loans, owing tens of thousands more than the current market value of their houses. If they invested little or nothing in down payments, some owners reason, continuing to make payments - even if they can afford to - may be throwing good money after bad.