DeMarco is the head of the government oversight of Fannie and Freddie. He has determined not to allow a principal forgiveness. Irvine Renter has a full analysis, however this is just the new story.
FHFA refuses principal reduction for Fannie, Freddie
By Jon Prior July 31, 2012 • 1:00pmFederal Housing Finance Agency Acting Director Edward DeMarco will not allow principal reduction on Fannie Mae and Freddie Mac loans.
“Given our multiple responsibilities to conserve the assets of Fannie Mae and Freddie Mac, maximize assistance to homeowners to avoid foreclosures, and minimize the expense of such assistance to taxpayers, FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches in place today,” DeMarco said in a statement Tuesday.
New FHFA analysis shows Fannie and Freddie would save $3.6 billion by writing down principal under the Home Affordable Modification Program.
After payouts from the program are factored in, taxpayers would save $1 billion if the government-supported agencies were allowed to participate, according to the analysis. Nearly 500,000 mortgages could be eligible for the program.
In a letter to Congress, DeMarco said the program could cost up to $90 million to implement and a year or more for mortgage servicers to get up to speed.
If half of the eligible borrowers go through the program, savings drop to roughly $500 million, according to the analysis.
“Experience indicates that the likelihood of successfully modifying and reinstating these loans is small so that the anticipated net benefit is likely to be much less than $500 million,” DeMarco said.
Buena Park Overview
| Median home price is $327,000. Based on a rental parity value of $481,000, this market is under valued. |
| Monthly payment affordability has been worsening over the last 1 month(s). Momentum suggests unchanging affordability. |
| Resale prices on a $/SF basis increased from $233/SF to $233/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates increased $25 last month from $1,941 to $1,966. |
| Rents have been rising for 9 month(s). Price momentum suggests rising rents over the next three months. |
| Market rating = 8 |
Proprietary OC Housing News home purchase analysis 
6175 MARIAN Ave Buena Park, CA 90620
$449,500 …….. Asking Price
$155,000 ………. Purchase Price
12/17/1993 ………. Purchase Date
$294,500 ………. Gross Gain (Loss)
($12,400) ………… Commissions and Costs at 8%
============================================
$282,100 ………. Net Gain (Loss)
============================================
190.0% ………. Gross Percent Change
182.0% ………. Net Percent Change
5.8% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$449,500 …….. Asking Price
$15,733 ………… 3.5% Down FHA Financing
3.70% …………. Mortgage Interest Rate
30 ……………… Number of Years
$433,768 …….. Mortgage
$114,207 ………. Income Requirement
$1,997 ………… Monthly Mortgage Payment
$390 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$112 ………… Homeowners Insurance at 0.3%
$452 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,950 ………. Monthly Cash Outlays
($302) ………. Tax Savings
($659) ………. Equity Hidden in Payment
$19 ………….. Lost Income to Down Payment
$132 ………….. Maintenance and Replacement Reserves
============================================
$2,141 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$5,995 ………… Furnishing and Move In at 1% + $1,500
$5,995 ………… Closing Costs at 1% + $1,500
$4,338 ………… Interest Points
$15,733 ………… Down Payment
============================================
$32,060 ………. Total Cash Costs
$32,800 ………. Emergency Cash Reserves
============================================
$64,860 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # S706021 from our database. Please check back soon.
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$484,995 9772 JUANITA St |
0.51 miles 4 bd / 2 ba 1,730 Sq. Ft. |
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$525,000 5492 CYNTHIA Cir |
0.68 miles 4 bd / 2 ba 1,749 Sq. Ft. |
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$429,900 6341 ROSEMARY Dr |
0.72 miles 3 bd / 1.75 ba 1,257 Sq. Ft. |
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$519,000 - |
0.73 miles 3 bd / 3.5 ba 1,878 Sq. Ft. |
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$450,000 10371 WHIRLAWAY St |
0.86 miles 4 bd / 2.5 ba 1,883 Sq. Ft. |
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$486,000 5621 LIME Ave |
1.01 miles 3 bd / 1.75 ba 1,595 Sq. Ft. |
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$888,000 7132 KERMORE Ln |
1.11 miles 4 bd / 3 ba 1,960 Sq. Ft. |
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$340,650 11336 HOLDER St |
1.11 miles 3 bd / 2.5 ba 1,797 Sq. Ft. |
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$380,000 10452 South DORIS Cir |
1.2 miles 3 bd / 1.5 ba 1,436 Sq. Ft. |
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$479,900 7290 THUNDERBIRD Ln |
1.23 miles 5 bd / 2.75 ba 1,730 Sq. Ft. |
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Why Rise in Home Prices May Not Mean Much—Yet
Average home prices through May increased for the second month in a row, according to the latest S&P/Case-Shiller Home Price Indices, which measure both the top ten and top twenty housing markets in the US.
Prices are still down from a year ago, but those annual drops are improving.
“On a monthly basis, all 20 cities and both composites posted positive returns and 17 of those cities saw those rates of change increase compared to what was observed for April. Seventeen of the 20 cities and both Composites also saw improved annual rates of return,” notes S&P’s David Blitzer.
“We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns,” he added. “However, we need to remember that spring and early summer are seasonally strong buying months so this trend must continue throughout the summer and into the fall.”
This is not the first time since the initial home price collapse in 2006 that we have seen prices rise, only to fall again. We saw large price gains in 2009, thanks to the home buyer tax credit, and we saw slight gains last spring due to some seasonality and a big run on distressed properties by investors.
So how do we know if the latest gains we are seeing are here to stay?
Much of the answer lies in foreclosures. Many markets have seen their supply of foreclosed properties fall dramatically, due to huge investor demand.
Take Phoenix, for example, where investors claim there is just not enough to buy. Home prices there are up 11.5 percent from a year ago.
Miami and Tampa are also seeing solid gains. But Atlanta continues to be the weakest spot; as foreclosure supplies there surge, prices are down 14.5 percent.
Foreclosures are falling nationwide, but the crisis is far from over, and the concern is that all the delays in foreclosure processing will continue to wreak havoc on home prices for at least another year, if not longer.
There were 1.4 million homes in some stage of foreclosure in June, down slightly from 1.5 million in June of 2011, according to a new report from CoreLogic.
Completed foreclosures, however, fell more dramatically, down 24 percent from a year ago. This is likely due to renewed loan modification efforts by lenders, as well as new state legislation, that are keeping many homes from final foreclosure.