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Displaying blog entries 321-330 of 381

Credit Card Changes

Monday, September 7, 2009
by Liz Warren

What do the new changes for credit cards mean for you? If you haven't noticed, many credit card companies have already made preemptive strikes. Since January 2009 many companies have raised interest rates  and fees by 20% and slashed credit limits for an estimated 58 million card holders.

August 2009 new regulations came into effect on receipt of your credit card bill, how much notice consumers are given before their rates are changed and other items.

It's predicted that the credit card industry will be in turmoil for another year. Be sure and watch for notices from companies because if you don't pay attention you may be subject to more fees!

Here are some interesting stats:

*about 85% of credit card owners pay interest or fees every month

*48% incur penalties and or exceed their credit card limits

Naturally, the higher interest rates on balances may cause credit dings which will cause a lower credit score. This could trigger higher interest rates when you purchase goods- such as cars, refrigerators or any other consumer goods you purchase on credit.

You might want to consider switching your card balance over to a lower rate at some point. Just be aware of the good, the consumer protection laws (Card Accountability Responsibility and Disclosure) going into effect, and the bad-the impact of your card's higher rates and credit limits!

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Expiring $8,000 Credit for HomeBuyers!

Monday, August 17, 2009
by Liz Warren

The credit for $8,000 to first time home buyers that qualify is about to expire on November 30 of this year!

Housing lobbyists are busy working on a campaign to get this credit extended for at least another year. Some groups, like home builders, are pushing for the credit to be extended to anyone buying a home, not just first time home buyers. The chairman of the Senate banking committee, Chris Dodd, is pushing for an extension and an expansion to up to $15,000 max for a credit for an additonal year.

Don't count on anything passing but there are certainly groups trying to make this happen. The $8,000 credit has certainly helped the starter home sales but move up buyers have been slow to join the market recovery.

Details to come!

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Appraisal Info for Mt. Hood

Tuesday, July 14, 2009
by Liz Warren

Anyone in the Welches, Government Camp, Rhododendron or Brightwood area who has recently been involved with a real estate transaction or refinance know the problems which have cropped up with appraisals. There is some good news.

Freddie Mac has reviesed their guidelines for appraisals. There guidelines say "Sellers should consider membership in a professional appraisal organization as a qualification criterion". What this means is that appraisers should have the Appraisal Institure's MAI, SPRA or SRA designations. The Appraisal Institute requires extensive experience, education requirements, complies with a strict Code of Professional Ethics and follows the Standards of Professional Appraisal Practice.

Finding and hiring an appaiser with these types of qualifications will help insure a better and more accurate appraisal for buyers and sellers and the banks to prevent fraud.

 

 

 

 

 

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Mt. Hood Condos New FHA Rules

Tuesday, June 30, 2009
by Liz Warren

FHA has come out with new Condo lending guidelines. Here are some of the highlights that will have an impact on buyers and sellers in Welches, Government Camp and Rhododendron.

*Will not insure units if more than 10% are owned by investors. This rule applies to unsold units a builder owns or that are rented out by a developer.

*Will not insure if less than 50% are not sold nor are owner occupied.

*If there are more than 30% FHA loans already in the project, they will not insure. (I don't get that one)

*No financing of condo units within 1,000 feet from a major hiway-to avoid noise pollution impact on values. (Now that is a new one!)

Check with your local mortgage professional to get clarification on any of these items when buying or selling condos in the Mt. Hood area!

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Mt. Hood Mortgage Problems?

Thursday, June 25, 2009
by Liz Warren

If you are a homeowner in Brightwood, Welches, Government Camp or Rhododendron and are having some problems making your mortgage payment you may want to visit this site. It's called MakingHomeAffordable.gov This site will guide you through options if you have a second mortgage or line of credit that is making your current mortgage unaffordable.

This is part of the government's programs to help the housing crisis and make loans more affordable for homeowners by getting them out with short sales (selling for less than is owed on the home) or by loan modifications (lengthening time frame or reduced interest rate).

Use this site as a resource to guide you through the process.

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Appraisal Issues on Mt. Hood

Thursday, June 11, 2009
by Liz Warren

Many buyers in the Mt. Hood area have been trying to obtain loans or existing homeowners are trying to refinance and both groups are running into a few problems with appraisals. If you haven't heard, the appraisal industry-and everyone else- is in an uproar over HVCC  (Home Valuation Code of Conduct), which is costing Mt. Hood buyers, sellers and refiancers and everyone a lot of money.

This video explains what is going on. It's a little "loud" but gets the point across. So, if you live in Brightwood, Government Camp, Welches or Rhododendron and you are looking at a refinance or a purchase, be prepared for the fact that you may not only need to pay for one appraisal but two to make your deal fall together.

My own recent experience with the appraisal issue came with a recent transaction. The first appraisal was 30% below the purchase price-out of area appraiser. The buyer passed on a second appraisal and left the transaction.

The second purchaser had their appraisal completed and came in much closer to the purchase price. All this happened within a month's time frame. Now, how can an appraisal completed within one month of each other be off 30%? This is a text book example of getting an appraiser who knew nothing about our area and one that did.

There is an area to sign a petition to get rid of this HVCC on the video page and I would advise everyone to sign the petition and pass it along to your friends. The housing market is in enough trouble as it is when an even bigger elephant in the closet is the HVCC costing extra fees and impacting home values throughout our area!

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Nations Continuing Foreclosure Problem

Wednesday, June 10, 2009
by Liz Warren

A recent milestone was reach for 2009 and that milestone was one million foreclosures starts to date for 2009. This information is according to the Center for Responsible Lending. They also project that the number could increase to 2.4 million by the end of the year. The Center for Responsible Lending is a non profit policy group.

The Mortgage Bankers Association reports that 9.12% of all mortgage loans at the end of the first quarter were delinquent. This represents a shift away from the subprime loans to prime fixed rate loans. The moratorium on foreclosures over the winter slowed the process down but the unemployment numbers have been increasing causing additional missed payments on mortgages.

On the other hand, four states including California, Florida, Nevada and Arizona account for about 46 percent of foreclosure starts which is driving up the national number. These states represent half of the prime fixed rate foreclosure starts.

Did you know that approximately 10.6 percent of mortgages in Florida are in the process of foreclosure. Nevada is second highest at 7.8%, Arizona is third at 5.6% and California at 5.2%?

 

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Mortgage Changes in the Air

Monday, June 8, 2009
by Liz Warren

Change is in the air with government run Fannie Mae and Freddie Mac. Congress is having a house financial subcommittee start with hearings on how to restructure Fannie and Freddie in the future.

What does this mean to you? Since these two have failed and been taken over and run by the Feds the entire process is in for an overhaul. 

Fannie and Freddie have written the book and dominated the real estate market for decades on down payments, credit score requirements, loan amounts and underwriting standards. New rules will literally change these requirements and dictate what interest rates you will be eligible for.

Some theories suggest they morf into one unit. It's possible they could also help the jumbo and commercial markets with loans since these areas currently have no where to go to get money causing many problems in these areas.

If I hear any additional rumblings about where this is headed I'll include them in this blog.

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Mortgage Delinquencies on Rise?

Thursday, June 4, 2009
by Liz Warren

Are Mt. Hood mortgage delinquencies on rise? Well, yes according to the Mortgage Bankers Association. In fact, since keeping track since 1972, last quarter was the highest first quarter of delinquencies since records have been kept.

Unemployment and continued area job losses make mortgage payments difficult to meet. Although some reports say Oregon will see some job stability in the fourth quarter of 2009, most of the country is predicted to continue with higher unemployment well into 2010.

Top off the unemployment rates with increased foreclosure rates and the reset of subprimes coming up in '09 and '10 we should see more aftermath of bad loans impacting area homeowners.

Nationally one in ten of homeowners are in trouble with their loans. This seems to be a cascading effect that is inescapable if you have borrowed to the max or taken out home equity loans.

Stay tuned for the impact these events will have on the Mt. Hood market. So far the hardest hit area appears to be Government Camp. Not only did this area escalate in pricing at breakneck speed, like Bend, this market will take a very hard hit adjusting to current market conditions.

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Employment Rebound in 4th Quarter?

Tuesday, June 2, 2009
by Liz Warren

According to Moody's Economy.com there are five states which are poised to start an employment rebound in the fourth quarter of 2009. Their prediction is that Oregon will be one of those states. This would be great news since we are 2nd in the nation for unemployment. Our recession began in August of 2008 according to their numbers.

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Displaying blog entries 321-330 of 381

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