It’s Deja Vu All Over Again!!

Welcome to Deja Vu all over again for the national real estate market!!

Do you think that this industry will ever learn why the real estate market fell nearly into oblivion over the past 6 years? I don’t.  Here is the web page from CNBC that discusses the new Continue reading

Looming Deadline Could Doom Your Loan

Take heed Lake Oroville area home buyers.  You may be about to have your home buying plans moved to the sidelines.

This information is also valuable to  Oroville home sellers as it is entirely possible that the pool of potential home buyer could be shrinking.

Watch this latest video for a brief explanation for why this may happen to you.

FHA Cuts Loan Limits

The Government “Shutdown” and Your Loan

By: Mark Wisterman

Are you more than a little confused about how the current government slowdown will affect your loan processing for the purchase of your home? Well join the crowd!!

Thankfully, I work with a number of quality lenders that serve the Lake Oroville real estate market and the surrounding Butte County markets who are very good about communicating with me when off the wall issues like this occur.

One of these lenders, Tim McCabe of Academy Mortgage, just e-mailed this flyer to me which discusses the impact of the current slowdown on the loan processing by the various government agencies which currently control the mortgage market.

Click here to see the flyer or click on the graphic.

Gov Shutdown


Check back to this site, or see myFacebook business page  for any updates to the situation.
 

 

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FHA And The Partial Shutdown

Lake Oroville market, Oroville home sales, butte county home sales, Oroville real estate, homes for sale, Chico real estate, chico home sales, paradise homes for sale, financing, loans, FHA, Oroville real estate agents.

In Case of Government Shutdown

More “Help” For The Market?

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

The number of buyers who are searching for their next home in the Lake Oroville real estate market is about to increase putting further pressure on home prices thanks to FHA.

Under this new program, which runs until September 30, 2016, someone who has lost their home due to an “Economic Event” or has filed for Chapter 7 or Chapter 13 bankruptcy due to an “Economic Event” can qualify for the purchase of a home with an FHA loan in as little as 12 months after the loss of their home or discharge of their bankruptcy.

What is considered an “Economic Event” under the FHA guidelines? According to Mortgagee Letter 2013-26 it is defined this way: Continue reading

Coincidence?…..I Think Not!

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

 This is a little difficult for me to write as I have never been one to speak in any type of open forum about why things like I am about to relate to you happen. 

In the past I would chalk up things like this to “coincidence” or “luck.” But I do not think those things anymore. I think it is much bigger that. And I do mean BIGGER!!

This is just the latest in a series of events that have occurred to me over the past few months that can only be described as, well, indescribable.

This afternoon  I received an Estimated Settlement Statement for my buyer. For those of you who don’t know, these statements are issued by the escrow companies in order for buyers and sellers to see what the financial implications of their sale or purchase is. In this case the estimated statement called for my buyer to bring in a check in the amount of about $6,400 for the balance of their down payment and other closing costs. As I always do, I reviewed the statement before e-mailing to my client for her review. There was nothing that stood out to me as being wrong or out of the ordinary.

About an hour later she called me very confused and concerned about the amount that she was being required to bring in when she signed her loan documents. I do not want to get into the details as to why she thought what she thought about the amount, but she was assuming that she only had to come up with another $3,000 to close the transaction. We talked about it for a few minutes and then I called the loan officer’s assistant to review the numbers with her. Nothing in the numbers had changed since the buyer signed all the lender disclosures.

I called the buyer back to further discuss it with her. Although she still did not quite understand what had happened she said that she had  the additional $3,400 that was needed thanks to her husband’s parents who, by the way, are also co-buyers of the home.

Here is how the part of the conversation went leading up to the reason for this post.

Me: So you have discussed this with your husband’s parents?

Buyer: Yeah. Thank goodness they have the money to help. They have been very supportive. If I had to turn to my parents I would not be able to come up with the money because they could just not do it.

Me: That is great that they are so helpf……..

Buyer: Oh my god!!

Me: What’s the matter?

Buyer: My husband just opened mail from my parents and they sent their wedding gift to us. It is a check for…………………………$3,500.

Me: Are you kidding me.

Buyer: No…… I think I am going to cry.

 

By the time the conversation was over my client was barely able to speak as she was trying to hold back the tears. I hung up the phone and just sit quietly at my desk for a minute or two contemplating what I had just been a part of. All I could think at the time was…WOW!

Like I said, in the past, I would  use words like coincidence, luck, spooky, crazy, etc. But no more. It is events like this and the others that I have witnessed lately that now move me to use words such as, grace, intercession, miraculous, blessing, etc. There can be no other way to explain these things.

To those of you who have long ago had your faith training wheels removed this is probably no big news. But to someone still learning to get my faith-feet on the ground I am still more than a little amazed at what just happened.

Today God provided, in His own time,  and just in time, to my buyer. But He also provided something more to me during a day when I was struggling to get from one hour to the next.

It was this message:

Do everything that you can do and He will do what you can’t.

 

 

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Mr. Toad’s Wild Ride

By: Mark WistermanMy 2013 Photo-Web-Revised

 

Wow! Now that was quite a week in the Lake Oroville real estate market and beyond!!!!!!!!

The events of the week brought back a memory or two of the past when I worked with Bob Beever. Bob had a lot of favorite little sayings. One of them was, “It was like being on Mr. Toad’s

Wild Ride!” Now, I can’t really remember in what instance he used it, but I know what he meant, because I have been on Mr. Toad’s Wild Ride. And, even if you have never been to Disneyland,  you have just experienced it for yourself  if you are currently attempting to buy a home, or sell a home right now.

Mr Toad Wild Ride

Unless you have been hiding under a rock, or camping out on Lake Oroville with no contact with the outside world, you know that mortgage rates took off faster than a speeding bullet this week. It is interesting, and somewhat disappointing  to me to see the reaction to what transpired this week.

Just a month ago, on this very Lake Oroville real estate market  blog site, we discussed the potential for rates to jump like this See my post of May 23, 2013. So what happened to make interest rates move like they did. If you listen to the media, you would think it was all Federal Reserve Chairman Ben Bernanke’s fault. Bernanke was quoted as saying that if the economy continues to improve as the Fed is projecting, that there could be reduction in the amount of bond purchases that that the Fed is making sometime towards the end of this year and it is possible that by mid-2014 they will discontinue the bond purchases all together. Remember, these bond purchases, of over $1 TRILLION per year, are being used to artificially keep interest rates low in an effort to help the economy improve.

I have wondered for a while now how Bernanke is going to extract the Fed from this bond buying without tanking the housing market and the economy. Taking a trillion dollars out of the economy without sending it spirally out of control is going to take more magic that even David Copperfield can conjure up.

Here is my take on this: 

There is NO WAY that Bernanke can just come out one day, cold turkey, and say that the Fed has actually begun to pull back.  He has to ease into this. To do otherwise would be an utter disaster. In my view the stock market would probably drop 20% in a day if he just announced the end without any warning.  His testimony to Congress last month and his press conference this week is his way of  trying to avoid a meltdown.

Which brings me back to my comment about my disappointment with the reaction to all of this.

It seems that everyone is blaming Bernanke for the jump in rates and the drop in the stock market. Now, although I did stay at a Holiday Inn Express last night, I am not smart enough to know if Bernanke has handled this absolutely correctly. But you could have stayed at a Motel 6 last night and still figured out that this program has to end sometime and the end was getting closer. But no!! Wall Street’s reaction was like that of a spoiled kid having his allowance taken away!  In reality Bernanke didn’t change anything with regards to the bond buying, but the market absolutely ignored the “facts on the ground” and reacted with pure emotion sending rates on an upward spiral that still continues today, yet at a much smaller pace.

As with all reactions of this magnitude you should expect to see rates moderate in the coming few weeks and may even back track a bit as the market sees that the economy, while stronger, is far from strong and may even weaken in the 2nd half of the year which, in my opinion, will keep rates in the 4.25%-4.75% range.

 

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