March 17th is my Refinance Date

Just wanted to give you all an update the the Harp 2.0 Financing will be available on March 17th. And I am going to start my mortgage refinance on that date. Hopefully rates stay low for one more month and I will keep you posted.

We are now at the rock bottom of the Housing Crash

For many years scum bag realtors have been claiming that the bottom of the housing market has been reached only hoping to boost their sales.

Well folks, on Jan 31st, 2012. I am telling you that in my opinion we have now reached the bottom of the housing market and that prices will only rise from this point forward. Not saying they will rise astronomically but house prices will no longer crash until after the next peak is reached.

Why?

1) The New Harp 2.0 program will give responsible home owners a reason to stay in their home.

2) Foreclosures will no longer be a major anchor on the housing market because most of the foreclosures that were going to happen have occurred already, and Harp 2.0 and other refinancing options being talked about will give responsible home owners who have stuck it out this far a reason to continue doing so.

3) All the people who strategically defaulted back in 2008 have recovered their credit almost to the point where they can actually qualify for a mortgage again. From now on as each month passes more and more of the original losers who created this mess in the first place will now be able to get mortgages again at the lower home prices. I predict that this will be the major factor in driving house prices higher, as all the sub prime borrowers who got foreclosed on will start to feast their greedy eyes on mortgages, and house profits once again.

So everybody...Housing Fear is ending...And Housing Rise is about to begin once again.

Jan 30th, 2012...The Housing Crash has hit Bottom, and it's all uphill from here.

And if you are the girl in the photo...Please email me because I would like to buy you some drinks sometime.

The Best Political Ad of All Time.

Wells Fargo Harp 2.0: "Wait till March or April"

My mortgage guy calls me up yesterday and tells me that if I am still interested he could go forward with the refinance, and he now has all the information he needs.

Wow I thought...This was great news. When I asked him if it was true that there were no fee's with the harp 2.0 mortgage if you refinance to a shorter term he started to play dumb with me and asked "whats harp 2.o". I was kind of flabbergasted because he knew this was the whole purpose of me meeting with him in person 2 different times and what I was waiting for.

Basically he was trying to refinance me with the harp 1.0 mortgage saying I would qualify with that and tried arguing with me that my condo was not more then 125% underwater based on the information he had in his system.

I informed him that My condo was worth 30,000 if I was lucky and I paid 87,000 for it. I also told him I was not going to pay the appraisal fee associated with harp 1.0 or the higher origination fee's.

He then told me he heard nothing about harp 2.0 being lower in origination fee's. (even though I read it on the fannie mae info page. (see page 19-20 under pricing)
https://www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf

Basically I told him I was not interested in Harp 1, and I will wait till Harp 2 is out. He said it won't be until March or April, and he would hear more around Feb 1st.

I kind of feel like he was trying to trick me into refinancing into harp 1, even though he knew I wanted harp 2.

Sometimes it sucks being so smart. Hopefully it's not another April Fools Joke.

THE MEDIA IS RUNNING SCARED OF RON PAUL

It has become a comedy watching the news lately.

"If Ron Paul wins Iowa it means nothing"

"Ron Paul is good in Iowa, but thats about it"

Guess what guys...He is second in NH, and is surging. He will be the nominee if he wins Iowa.

I am predicting shenanigans in the MSNBC/Marist Poll tomorrow. The hosts are talking about "how excited" they are for this next poll so my guess is they have it rigged to show a drop for Ron Paul in Iowa to try and claim he is losing support and sway public opinion. Even though every other poll has him winning.

I really do detest the mainstream media.

Wells Fargo is Ridiculous

I went into the office yesterday and my mortgage guy was not there. A lady was there and tried to argue with me that she had heard nothing about the new Harp 2.0 being an unlimited loan to value ratio. That what she had heard was the new Harp 2.0 would be a 125% limit.

I basically politely told her to put down the crack rock she was smoking, because the whole point of harp 2.0 was to refinance people who were deeply underwater, and even the paper work from fannie mae I read online says there is no limit on the loan.

She then pretends to make a phone call...and after talking with a guy agrees that there will not be a limit. But says she has no idea when the program will be ready.

How can they offer something like this in October, get everyone excited, and then 3 months later have idiots in their office not even know the basic premise of the program. Maybe she thought I would be dumb enough to apply for the harp 1.0 if she could trick me, I have no idea.

Just think that this whole thing is turning into a joke.

Wells Fargo Harp 2.0 Update

Well...I qualify for everything to get the loan. The problem is that Wells Fargo has still not implemented the Harp 2.0 program. I think it is ridiculous that they recieved all the regulations on Nov 15th, and six weeks later they are still not able to take applications on it. My guess is that they are not in a big hurry to refinance people to a lower rate.

So I am still ready and waiting to lower my loan payment, and shorten the term of my mortgage. I just have to wait for Wells Fargo to get their act together.

Spoke with Two Mortgage people,

Spoke with two mortgage brokers about the new Harp Program. Both said I qualify. The rate for a 15 year mortgage would be about 3.75% and the payment would be almost exactly what I am paying now with my 6.5% 30 year mortgage.

Yea...Thats correct...A 15 year mortgage payment would be the same as my 30 year payment because interest rates are roughly half of what I am paying now.

A 30 year mortgage would be about 4.25% which would cut my payment almost in half, but would add 5 years onto my mortgage and would cost me a ton more in interest.

I think I am leaning toward a 20 year refinance which will take 5 years off my mortgage and also lower my payment. Kind of a best of both worlds scenario. The final regulations should get to the bank soon, and then they will process the rules. I am hoping sometime in December I can get the ball rolling on this refinance!

Hope that I can refinance my Mortgage.

Courtesy of Reuters:

Reuters) - A leading U.S. housing regulator on Monday announced changes to a government refinancing program that could help up to one million homeowners whose homes are worth less than their mortgage.

The Federal Housing Finance Agency, which oversees mortgage finance giants Fannie Mae and Freddie Mac, said it was easing the terms of the two-year-old Home Affordable Refinance Program, which helps borrowers who have been making mortgage payments on time but have not been able to refinance as home values have dropped.

To help underwater borrowers, or those whose loans are worth more than their homes, FHFA said it will scrap a cap that prohibits any homeowners whose mortgage exceeds 125 percent of the property's value from participating in HARP, which is targeted at loans backed by Fannie Mae and Freddie Mac.

The plan, targeted at borrowers who hold loans backed by Fannie Mae and Freddie Mac, is the latest government effort to deal with a problem at the center of the economy's weak recovery -- a crippled housing market.

"Our goal in pursuing these changes is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets," FHFA's acting director, Edward DeMarco, said in a statement.

After meeting with DeMarco earlier this month, one lawmaker said the expanded program could help as many as 600,000 to one million borrowers. But that is only a fraction of the estimated 11 million homeowners who are underwater.

President Barack Obama will showcase the changes at a stop on Monday in Nevada, the first leg of a campaign-style swing through western states that may be crucial to his re-election in 2012.

To encourage banks to participate in the program, FHFA is revamping it to protect lenders from having to buy back HARP loans if underwriting problems are later found. Banks will only have to verify that borrowers have made at least six of their last mortgage payments and the new rules eliminate the need for appraisals in most cases.

FHFA said government-controlled Fannie Mae and Freddie Mac will waive certain fees for borrowers that refinance into loans with a shorter term, such as 15 years, aiming to spur homeowners to pay down the amount they owe at a faster rate.

HARP, one of the Obama administration's anti-foreclosure efforts, was unveiled in March 2009 and was expected to help as many as 5 million borrowers. So far, however, only about 894,000 borrowers have refinanced their loans through the program.

FHFA said it will extend the effort until December 31, 2013. The program is limited to loans that Fannie Mae and Freddie Mac guaranteed before June 2009.

Wish me luck everybody. I have a Fannie Mae loan at 6.5% interest. I have never missed a payment. However I was not eligible for the program because my condo was worth way less then the 125% guidelines. I am going to speak with someone during the next week and see if I can get a refinance done, possible even to a 15 year mortgage and save myself the fee's. With today's 15 year mortgage rate at 3.5% that's 1/2 of what I am paying now. Plus I would get my house paid off 10 years sooner. I will give it a try and keep you all posted.

ROMNEY IS RIGHT ON HOUSING

In an interview published Tuesday ahead of presidential debate, Romney told Las Vegas Review Journal's editorial board that solving the foreclosure crisis would require letting banks proceed against homeowners who have defaulted on their mortgages. New investors could then rent out the homes until markets adjusted.

"As to what to do for the housing industry specifically and are there things that you can do to encourage housing: One is, don't try to stop the foreclosure process. Let it run its course and hit the bottom," Romney said.

Romney elaborated during the presidential debate Tuesday night. "The idea of the federal government running around and saying, We're going to give you some money for trading in your old car...or we're going to keep banks from foreclosing if you can't make your payments...", Romney said, "The right course is to let markets work."

I can't agree more with Romney. I have been saying this since 2008!
The best thing the government can do to help the housing market is to do nothing. Things will get very bad, people will get foreclosed on...but then...like magic...the free market will take effect when prices get low enough to encourage people to buy. Then the price of housing will rise again as the housing market begins to feed on itself in an upward trend.

Ron Paul has my vote for 2012. However, Romney has the right idea on housing.

Divorced

I would be wrong to say that the housing bubble and crash was the only cause of my failed marriage. However, I would say that it definitely was a contributing factor to it. My now ex-wife hated my condo. I really believe that when she was faced with the prospect of having to move back into it this spring, she decided to "explore her other options".

Now after helping her study, and pay her way through school, she has an education, a higher paying job, and no condo debt. She is now able to purchase the house she wants and live happily ever after.

I am stuck with a condo that is worth about $30,000....and I owe around $63,000 on the mortgage. I also have an additional 24,000 of "equity" into it (I payed $87,000 for the property in 2006) so there is no way I can just walk away since I have so much of my actual money invested into the property. On the bright side, I am graduating this December, Unfortunately, I still have another year of an unpaid internship to go before I too can make use of my degree and earn a higher salary.

My wife was not who I thought she was, and I am glad she is gone. But I must admit it is depressing that my financial situation now seems very hopeless while she gets a fresh start. I know what goes around comes around, and someday she will have done to her what she did to me...until then...

...I guess that is just the way life works out...

Housing Fear Humor

I really worry what is in store for the future of America if Ron Paul is not elected President.

When do you think the housing market will recover?

I posted a Poll in the sidebar.

I had originally predicted back when I started writing this blog in 2007 that the Housing Market would recover in 2012. However, I warned that if the government tried to get involved they would simply make matters worse.

This is exactly what happened with failed policy's like the first time home buyers credit that simply pushed all the demand into a small window and dried up demand for the next year. This also upset people who were not technically first time buyers, but chose to delay a house purchase because the credit was an unfair playing field that they did not have access too and had to compete against.

To make matters worse the government is now talking about selling off foreclosed homes to private investors in bulk, and letting them make a fortune on it. (I will write an article on this later). Once again the government is in the business of picking winners and losers. They need to learn to stay out of the way of the free market, let prices drop, and then let a natural recover occur.

Of course...That would make to much sense.

One of the Best Ron Paul Video's yet!

Good stuff!

August Stock Crash

Is the party finally over?

Or are we going to party like its 1929 :)

Arab Spring

There is a lot of unrest and anger in a lot of third world nations right now in the middle east. The problem is that the governments that are being thrown, Egypt for example, were friendly with the United States.

Its laughable to watch the media cover this like it is a great victory for America's war on terror. When in reality most of the rebels are AL-Qaeda extremists. I think time will show that this uprising is a direct result of Americas flawed foreign policy, and the result will not be what the media portrayed it to be. I would not be surprised if the new government of Libya is much worse then Gaddafi himself.

HousingFEAR Humor

Shadow Inventory may take Years to Clear

Shadow Inventory are houses that need to be sold, that want to be sold, but the owner of the house has basically given up on selling it untill situations improve with the housing market.

Say it is a couple like myself and my wife who own a 1-bedroom condo and want to buy a house. However, we are underwater on our condo, so we are trapped there untill the market improves. Even though we desperatly want to move up to a larger house and have the income and credit to do so, the condo is an albatross.

As soon as prices improve, that condo will be going up on the market, making it one of many shadow inventory properties waiting to be sold. It is not listed now in current supply, but it is lurking in the shadows waiting to join the supply as soon as economically possible.

Check out this blurb about Shadow inventory below...

If you thought the U.S. housing market is showing any signs of improvement, a
new report by New York City-based Fitch Ratings puts the damper on that view.

Fitch says seven million homes in the "shadows" will take 40 months to
clear.

The agency defines the shadow supply of properties as loans that
are delinquent, in foreclosure, or real-estate-owned (REO) by the servicer.
Fitch says based on recent liquidation trends, it will take at least 3 ½ years
to clear this existing distressed inventory.

DSNews.com reports that
according to the ratings agency, the number of months between the date of the
borrower's last payment and the date of liquidation has steadily increased over
the past several years, and is now at more than 18 months on average.

Fitch says that is the highest figure on record.

Clearly there is a ton of inventory on the market, but even more awaits in the shadows. This blog will continue on untill the housing market returns to normal and my condo is sold. Housing Fear is still alive!