February 2012 Archives » North OC Housing News

Credit Cards are now replacing HELOC’s as “Free” Money

Tagged with: Credit

Feb 292012

Credit Cards are now replacing HELOC's as "Free" Money

Unlike a HELOCs, which gave s0me loan owners up to $250,000 of credit and then the lender tried to collect after the house was worth nothing, credit cards will cut you off must faster. But it’s interesting that total consumer debt is still increasing. We keep hearing that economy has turned around. Could one of the major factors been the increase in consumer debt and this “growth” is not real but debt fueled like the housing bubble? Credit Card Debt Nears Toxic Levels Updated: Sunday, 26 Feb 2012, 4:19 PM EST (New York Post) – More American households are falling back into the debt hole, this time without the safety net of home values to help bail them out, [Read More...]

California has the highest housing burden for the middle class

Tagged with: Housing Debt, income

Feb 282012

California has the highest housing burden for the middle class

Please note this is 2010 data. In this quickly changing market place the median house price at the state and national levels have dropped since the data presented in this report. I’m assuming that new buyers are facing stricter lending standards will probably won’t be facing this steep of a burden. However, with the 2010 housing burden for the middle class at 34% in 2010 this may indicated that California is facing a lot of strategic defaults and short sales which will put pressure on home values. Despite Falling Prices, Housing Burden Still High for Middle Class February 24, 2012, 10:43 AM Though home prices have fallen dramatically as a result of the housing bust, paying the monthly cost of owning or renting a [Read More...]

Beware: Mortgage Fees Are Rising

Feb 272012

This is just a follow from my last Friday’s post. Mortgage rates are usually determined by supply and demand. However, new taxes will now be included in mortgages, slimilar to the state and federal gas taxes. Beware: Mortgage Fees Are Rising By AMY HOAK FEBRUARY 26, 2012 Increased fees are sneaking into the overall cost of most mortgages. But given the ultralow interest rates these days, it’s likely few borrowers will notice. Mortgage rates are clinging near record lows, with the 30-year fixed-rate mortgage averaging 3.95% for the week ended Feb. 23, according to Freddie Mac’s weekly survey of rates for conventional mortgages. Still, consumers should pay attention to any fee increases because they could very well be a sign [Read More...]

La Palma condo owner doesn’t see the recent home values declines

Feb 262012

This condo in La Palma is a standard sale. The owner purchased the condo in 2001, so the owner looks like they still have equity. However, is more expensive than some of the other condos on the market. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- — ————————————————————————————————————————————- Proprietary North OC Housing News home purchase analysis 4564 MONTECITO Dr La Palma, CA 90623 $349,000 …….. Asking Price $225,000 ………. Purchase Price 6/18/2001 Purchase Date $124,000 ………. Gross Gain [Read More...]

Hottest Listings in North Orange County 2-25-2012

Tagged with: Most Popular

Feb 252012

Hottest Listings in North Orange County 2-25-2012

Redfin is the most popular real estate search site in Southern California. They track the most popular listings based on the number of views each receives. Below are some of the most viewed property listings in North Orange County. Check them out. 301 North COLFAX St La Habra, CA 90631 Competing Listings $330,000 331 North FONDA St 0.11 miles 3 bd / 1.75 ba 1,210 Sq. Ft. $252,500 504 WARNE St 0.22 miles 2 bd / 1 ba 1,046 Sq. Ft. $310,000 1741 E STEARNS Ave 0.22 miles 3 bd / 2 ba 1,365 Sq. Ft. $215,000 218 ALPINE St 0.24 miles 3 bd / 1 ba 1,055 Sq. Ft. $205,000 918 East ERNA Ave 0.26 miles 3 bd / [Read More...]

End of the workweek Mortgage News

Tagged with: FHA, Mortgage rates, Shadow Inventory

Feb 242012

There is actually three pieces of mortgage news; one concerning fees, one about delinquencies, and one about number of new mortgages. FHA to announce premium changes soon By Jon Prior• February 22, 2012 • 10:41am The Federal Housing Administration will announce additional premium changes to its mortgage business and streamlined refinance programs in the coming days. FHA Acting Commissioner Carol Galante said in a speech at the Mortgage Bankers Association servicing conference in Orlando, Fla., Wednesday that the changes are on their way. As part of the payroll tax extension agreed to last fall, the FHA will raise premiums on its forward mortgages by 10 basis points and by 25 bps for jumbo loans This means that FHA, which is [Read More...]

Fannie and Freddie says thanks for the bailout, but we are not paying you back

Feb 232012

I have a question. If executives received bonus and they didn’t see the financial chaos they were creating, then shouldn’t they return their bonus to the federal government at a minimum? I’m not even mentioning the lack of fiduciary responsibility to the shareholder of the Fannie Mae and Freddie Mac that was clearly broken. Those executives should have been the first ones to see the problems in the mortgage and done corrective action. Instead, they pushed the banks to write sub-prime loans. This industry is FUBAR’ed I don’t to begin or end detailing the problems. Housing regulator wants Congress to shrink Fannie Mae, Freddie Mac By Jim Puzzanghera February 21, 2012, 12:28 p.m The regulator for Fannie Mae and Freddie [Read More...]

Return to 1990′s home values…a possibility

Tagged with: 1990's prices, Home Values, Mortgage rates, US Debt

Feb 222012

Return to 1990's home values...a possibility

First, I’m not saying this will happen but there is a possibility this can occur only if certain economic and financial conditions are met. For this event to occur the right conditions would have to happen in the right order and they would have to be severe. But if the home values did return to 1990′s prices, I think eventually demand would return and boost prices back to the early 2,000′s. However, according to historical data, there’s possibility of a return to 1990′s home values. I have documented this is happening in the 55 or older housing market in South Orange County, but that’s a very unusual case. Now, I can’t calculate the probability in percentages, it’s outside my expertise, but I would say there is an outside chance. The Affect of Federal [Read More...]

Orange County home values declines continue on pace in January 2012

Tagged with: Home Values

Feb 212012

Orange County home values declines continue on pace in January 2012

For the month of January 2012, Orange County homes have continued there rate 5.5% year over year price declines in January 2012. This is the third month in row of 5.5% price declines as the months of November and December had the same home vlaue declines. What is even more significant that mortgages in Jauary 2011 mortgage rates .84% higher. The mortgage rates decreases hasn’t slow the drop in home values declines. See the excellent Orange County Housing News graph below. This house is modeled like one of those Southern Colonial house. But this one quite didn’t make the look. It’s 2006 price has $690,000. It’s an REO so the agent really didn’t stage good photos. – —- —- —- —- —- —- —- —- —- —- [Read More...]