I’m a little skeptical but the Feds have done a better job with HAMP 2.0. I would think more short sales will put pressure on home values, but that’s only a guess.
Will short sales hit home prices?
Aug. 22, 2012, 10:06 a.m. EDT By AnnaMaria Andriotis
On Tuesday, the Federal Housing Finance Agency announced new guidelines that are supposed to make it easier for home owners to sell their properties in a short sale — when a home sells for less than the borrower owes on the mortgage.
In addition, the new guidelines, which kick in on Nov. 1, allow owners with a Fannie Mae or Freddie Mac mortgage to pursue a short sale even if they haven’t fallen behind on their mortgage payments but have a hardship, such as a job loss or divorce.
Consumer advocates say the changes will help some of the borrowers who’ve been unable to sell the estimated 11 million U.S. homes worth less than the value of their mortgage, according to CoreLogic. However, not all homes would qualify in this new program.
And while the changes provide new hope to distressed home owners, experts say they could negatively affect prices in neighborhoods that get an influx of new short sales. A rise in short sales will result in “downward pressure on home prices until we clear out the majority of these distressed properties,” said Jack McCabe, an independent housing analyst in Deerfield Beach, Fla.
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Proprietary OC Housing News home purchase analysis
9401 ASBURY Cir Westminster, CA 92683
$579,900 …….. Asking Price
$481,438 ………. Purchase Price
3/9/2012 ………. Purchase Date
$98,462 ………. Gross Gain (Loss)
($38,515) ………… Commissions and Costs at 8%
============================================
$59,947 ………. Net Gain (Loss)
============================================
20.5% ………. Gross Percent Change
12.5% ………. Net Percent Change
37.8% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$579,900 …….. Asking Price
$115,980 ………… 20% Down Conventional
3.60% …………. Mortgage Interest Rate
30 ……………… Number of Years
$463,920 …….. Mortgage
$106,713 ………. Income Requirement
$2,109 ………… Monthly Mortgage Payment
$503 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$145 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$0 ………… Homeowners Association Fees
============================================
$2,757 ………. Monthly Cash Outlays
($332) ………. Tax Savings
($717) ………. Equity Hidden in Payment
$135 ………….. Lost Income to Down Payment
$165 ………….. Maintenance and Replacement Reserves
============================================
$2,008 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$7,299 ………… Furnishing and Move In at 1% + $1,500
$7,299 ………… Closing Costs at 1% + $1,500
$4,639 ………… Interest Points
$115,980 ………… Down Payment
============================================
$135,217 ………. Total Cash Costs
$30,700 ………. Emergency Cash Reserves
============================================
$165,917 ………. Total Savings Needed
The property above is available for sale on the MLS.
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Cost of Ownership Analysis
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Gain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage! The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready! The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home! Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today! To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."Comparative Market Analysis
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0.07 miles 5 bd / 3.5 ba 2,130 Sq. Ft. |
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0.33 miles 4 bd / 2.75 ba 2,465 Sq. Ft. |
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0.44 miles 4 bd / 2.25 ba 2,774 Sq. Ft. |
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0.76 miles 4 bd / 2.5 ba 2,339 Sq. Ft. |
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0.94 miles 5 bd / 2.5 ba 2,589 Sq. Ft. |
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1.08 miles 4 bd / 3 ba 2,245 Sq. Ft. |
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1.08 miles 3 bd / 2.25 ba 2,020 Sq. Ft. |
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The taxpayers lost billions on the AIG bailout, but in typical government fashion, to justify their actions, they announce they saved the world and made a profit. Complete and utter bullshit. If they truly did make a profit from this bailout, wouldn’t the former bondholders and stockholders sue?
New York Fed Profits After Selling Remaining Securities from AIG Bailout
The Federal Reserve Bank of New York announced an important milestone Thursday – the final sale of its remaining securities from the 2008 AIG bailout.
The final sales from Maiden Lane III, one of the struggling mortgage-related portfolios the Fed usurped in 2008, brought the Fed’s total profit from AIG securities to $6.6 billion.
“I am pleased that we were able to achieve our principal goal, which was to protect the U.S. economy from the potentially devastating effects of AIG’s failure, while demonstrating sound stewardship of taxpayer interests,’‘ said William Dudley, president of the New York Fed.
“I am proud of and commend all of the people at the New York Fed who worked tirelessly and diligently to get us here,” Dudley stated in a press release Thursday.
The Fed has been shedding its AIG securities since early this year with the sale of its final Maiden Lane II securities in February, followed by sales of some Maiden Lane III securities in June.
Maiden Lane LLC and Maiden Lane III LLC also repaid loans to the Fed in June, with interest.
The Fed profited $8.2 billion in interest and fees from loans made to AIG, in addition to its profits from the sale of Maden Lane securities.
In all, the Fed accrued $17.7 billion in revenue from its assistance to AIG.
The Federal Reserve and the Treasury stepped in to aid AIG, the world’s largest insurance company, in 2008 when the company was teetering on the edge of collapse.
AIG’s collapse “posed a direct threat to millions of policyholders, state and local government agencies, 401(k) participants, banks and other financial institutions in the United States and abroad,” according to the Fed.