Archive for the 'Sac Real Estate' Category
Loan City Bites the Dust
Today’s announcement, posted on their website, entirely unexpected…
LoanCity is closed for business. Today March 20, 2007 is the last day we will be funding loans. To our customers, our staff and business partners - we thank you.
There are many people finding out as they near the close of escrow that they don’t have loans after all. What could be more unsettling than that?
Does your lender have the knowledge and experience to steer you away from trouble and weak lenders?
Got a question or concern? Email me.
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The way the real estate market has slowed, you would think lenders would be just waiting to pounce on and approve next loan that comes through. You’d think our “turn times” would be faster for underwriting, drawing loan docs, funding and recording. You’d think loans should virtually fly through the approval process. You’d think all that, and yet you’d be wrong.
So just exactly why are loans taking longer than they should right now? Here are 6 reasons that come to mind:
Reason #1: Layoffs
Like any business, when things slow down the mortgage industry lays people off. This slowdown started in late 2005. Companies have had plenty of time to wake up and smell the coffee. Wholesale lenders have laid off underwriters, doc drawers, and funders and attempted to restructure their processing centers. Most are now under-staffed and service is suffering.
Reason #2: Seasonal Factors
Thanksgiving, Christmas, New Years, and Presidents Day all punch holes in the work week. People leverage time off by combining vacation days and holidays, causing further staffing shortfalls during these times. As I cough and hack my way through the last few days, I am reminded of the toll that colds and flu can take on the remaining workforce.
Appraisers Pressured to Falsify Findings
It’s an ugly fact of life in a declining real estate market. Real estate appraisers are under pressure from all sides. Here’s a recent article I saved.
Daily Real Estate News | February 2, 2007
Appraisers Get Pressured to Falsify Findings
The pressure is on property appraisers to come up with the right number, say 90 percent of appraisers surveyed by October Research Corp., which publishes Valuation Review, an industry newsletter.
That percentage is much higher than it was in 2003, the last time the survey was conducted, when only 55 percent of appraisers reported attempts by others to influence their findings.
The current survey found that 68 percent of appraisers lost the client when they…
It’s not that I want to keep beating the mortgage fraud drum, it just keeps falling into my lap.
Furthermore, I figured that as a mortgage broker with almost two decades of experience, I could easily steer clear of trouble. After all, if I can’t recognize mortgage fraud, who can?
But today I learned a double lesson. Mortgage brokers and FSBO sellers are both at risk of getting caught up in mortgage fraud. Without even knowing.
What happened?
This morning, a woman called in and asked to speak with “the broker”. Hmmm….sounds like trouble. Although reluctant at first to explain, she finally spilled the beans. Here’s what unfolded.
Purchasing Sacramento Short Sales–A Waste of Time?
I am frequently asked these days about buying “short-sales”. It sure seems like a good buying opportunity. But after what happened this week, I’m not so sure anymore.
Nearly everyone knows what a short-sale is by now. But just in case, a short-sale is a home listed for sale that, when sold, will not yield enough to pay all the costs of the sale and pay off the existing mortgage(s) completely. So the lender is asked to accept less than the amount owed. If they agree, a short sale results. Sacramento area homes have fallen enough in value that short-sales are becoming commonplace.
Now, there are several reasons why a short-sale seems like is a great opportunity to buy a home cheap.
Sacramento Mortgage Rate Update
The benchmark 30 year fixed rate rose slightly to 6.00% with 1 point.
Behind the Changes
It’s been an active week in the bond market, with a number of significant economic reports. All pointed toward a stronger economy, eroding hope for a Fed Rate cut this Spring. The closely watched 10 year Note ended the week at 4.773%.
December PPI, CPI, Housing Starts, and Housing Permits were all higher, and this morning’s University of Michigan Consumer Sentiment leaped to a 3 year high.
Here are the actuals vs. the expected:
You may have seen Bob Shallit’s recent Sacramento Bee article highlighting Sacramento Area Flippers in Trouble. This is a local real estate blog that lists 470 area homes purchased in the last two years and now relisted at prices much lower than those paid.
I’m familiar with this blog, so Shallit’s article was not a revelation. But one particular paragraph caught my eye. Regarding flips gone bad, a local Realtor is quoted saying “many sellers won’t bear the full brunt of the loss. That’s because lenders sometimes agree to forgive whatever debt remains after a house is sold to save themselves the costs of a foreclosure.” Okay, that just sounds too pretty, too…forgiving. Would you like to know how it really looks ?
Here is a true story of one recent Sacramento flipper in trouble.