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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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What do you think the future holds for the Housing market?
Rates will go down but what about all the people who still have the higher rates? And have lost value in their homes and cant refinance?
Message edited 1/2/2009 3:14:10 PM.
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Posted 1/2/09 2:41 PM  |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: What do you think the future holds for the Housing market?
What do you mean what will happen? I think refinancing is probably the only option for those who can do it. That said, my DH's friend got turned down for refinancing because of his credit score. 
Message edited 1/2/2009 3:12:59 PM.
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| Posted 1/2/09 3:04 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What do you think the future holds for the Housing market?
Posted by nov04libride
What do you mean what will happen? I think refinancing is probably the only option for those who can do it. That said, my DH's friend got turned down for refinancing because of his credit score.
Wow his score had to be really low..Sorry to hear
ETA:
I am not an expert so I figured his score was low since doing the refinance is aided by the equity in his home--WOw they really are making it tough if his score was good...No hope for homeowners I tell ya!
Maybe he should shop around---
I updated my question.
Message edited 1/2/2009 7:14:11 PM.
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| Posted 1/2/09 3:15 PM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: What do you think the future holds for the Housing market?
I'm certainly no expert, but for those who have lost significant value in their current home...refinancing or selling probably aren't going to be options right now.
No one knows for sure when we will hit bottom...it certainly isn't now. Most people seem to think Q4 of this year.
So, if people could just wait it out...things will turn around. They always do.
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| Posted 1/2/09 3:26 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
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Meaghan
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Re: What do you think the future holds for the Housing market?
Posted by sometimesmommy
Wow his score had to be really low..Sorry to hear
Not necessarily....some banks are looking for 750+ FICOs in order to do a mortgage. would you consider 740 really low?
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| Posted 1/2/09 6:52 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What do you think the future holds for the Housing market?
Posted by Meaghan729
Posted by sometimesmommy
Wow his score had to be really low..Sorry to hear
Not necessarily....some banks are looking for 750+ FICOs in order to do a mortgage. would you consider 740 really low?
I have friends who have mid 600's and still got mortgages with decent rates. So thats where my comment came from.
Maybe he should shop around then. Banks wont be getting much business if they make 750 the avg--not in this economy anyways.
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| Posted 1/2/09 7:09 PM |
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Kidsaplenty
Sister love
Member since 2/06 5971 total posts
Name:
Stephanie
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Re: What do you think the future holds for the Housing market?
I don't think we've hit bottom yet. Personally I think the winter of 2009/2010 will be the best time to buy.
Even if rates go up, I'd rather buy when home prices are low and wait to refinance when the rates go down again.
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| Posted 1/2/09 7:39 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What do you think the future holds for the Housing market?
since I am on the front lines - I can tell you it's not pretty
but it's not as bad as the news would have you believe
my DH just closed an FHA loan for someone with a 612 score- he got a very good rate for his situation 7%
modifications are a great - low cost alternative for people that can't re-fi b/c they are late, behind, upside down etc - credit score doesn't matter for a mod, no appraisal is needed and they cost nothing compared to a re-fi
we are seeing rates come back as low as 3.5%
short sales are also a great way to get out of a bad situation with out a foreclosure-
there are alot of options out there for people- and most of them don't even know what is available to them
Message edited 1/2/2009 10:58:25 PM.
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| Posted 1/2/09 10:57 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: What do you think the future holds for the Housing market?
Banks wont be getting much business if they make 750 the avg--not in this economy anyways.
well, we wouldn't be in this mess (partially anyway) if banks didn't do subprime lending in the first place (those with low FICOs....)
so banks DONT want that business anymore. most banks anyway (I work in banking so I know)
brokers can still find homes, like Beth said someone in the 600s got a 7% rate when rates are in the 4s....
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| Posted 1/3/09 7:58 AM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: What do you think the future holds for the Housing market?
all of this has happened before, its cyclical.
We discussed this here on LIF a few years ago & people said LI was immune to RE busts & that foreclosures would never affect all of us. Most of the people that said that were too young to remember the mid 70's or the late 80's.
The bottom line is still the same, if you bought a home you can afford & took a loan that is a fair product it doesn't really matter. You're in it for what it is.
6 months after I bought my car for under sticker people were paying 5-8 thousand OVER sticker because everyone wanted one. They can't go back to toyota & rework the deal now that the prices are down again.
Loan mods are great solutions for true hardships but if everyone that took a higher rate for whatever reason tries to do a loan mod its a continuation of a bigger problem.
Technically I qualify for for a loan mod on my primary residence because I bought during the bubble & took a no doc loan at a higher rate because DH is self employed & he's in an affected industry-contsruction, but you know what...I signed up for it. Why should I get a new deal now without paying fees? I know people in the mortgage industry that are getting mods done on their own homes, uuummmm, if you 'sold' yourself a bad loan shouldn't that be YOUR problem?
The banks & all of the investors that bought that debt were counting on the higher rate. I do not think its fair or appropriate for everyone to expect their deal to be reworked now. Our banks are being bailed out by the Fed as it is.
It all goes back to accountability, this whole country needs to put their big girls panties on & deal with their own choices!!!!
Message edited 1/3/2009 10:46:46 AM.
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| Posted 1/3/09 10:46 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What do you think the future holds for the Housing market?
Posted by Meaghan729
Banks wont be getting much business if they make 750 the avg--not in this economy anyways.
well, we wouldn't be in this mess (partially anyway) if banks didn't do subprime lending in the first place (those with low FICOs....)
so banks DONT want that business anymore. most banks anyway (I work in banking so I know)
brokers can still find homes, like Beth said someone in the 600s got a 7% rate when rates are in the 4s....
What do you consider low? someone in the 600's isnt what I would consider low--most of America are in the 600's not necessarily low 600's but 600's none the less. So 600's I dont necessarily consider subprime if they are mid range.
Beth actually makes me even more curious why that poor guy didnt get his refi since 612 is a low Fico score and the other guy got a new mortgage. I still cant comprehend Bank logic ....
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| Posted 1/3/09 11:58 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: What do you think the future holds for the Housing market?
Posted by sometimesmommy
Posted by Meaghan729
Banks wont be getting much business if they make 750 the avg--not in this economy anyways.
well, we wouldn't be in this mess (partially anyway) if banks didn't do subprime lending in the first place (those with low FICOs....)
so banks DONT want that business anymore. most banks anyway (I work in banking so I know)
brokers can still find homes, like Beth said someone in the 600s got a 7% rate when rates are in the 4s....
What do you consider low? someone in the 600's isnt what I would consider low--most of America are in the 600's not necessarily low 600's but 600's none the less. So 600's I dont necessarily consider subprime if they are mid range.
Beth actually makes me even more curious why that poor guy didnt get his refi since 612 is a low Fico score and the other guy got a new mortgage. I still cant comprehend Bank logic ....
I would say anything above a 680 is lendable, but over 740 is excellent, tier 1 type credit.
maybe he didnt get his refi bc he didn't have enough equity?
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| Posted 1/3/09 5:52 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What do you think the future holds for the Housing market?
Posted by Meaghan729
I would say anything above a 680 is lendable, but over 740 is excellent, tier 1 type credit.
maybe he didnt get his refi bc he didn't have enough equity?
or debt to income ratio
DTI is huge right now
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| Posted 1/3/09 7:01 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
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Re: What do you think the future holds for the Housing market?
Posted by sometimesmommy
Rates will go down but what about all the people who still have the higher rates? And have lost value in their homes and cant refinance?
I would hope that they would continue to pay their mortgage.
Just because mortgage rates drop doesn't mean everyone should refinance. Some people are in good mortgages with good rates and there is little to no financial incentive to refinance.
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| Posted 1/3/09 7:39 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What do you think the future holds for the Housing market?
Posted by shamrock124
Posted by sometimesmommy
Rates will go down but what about all the people who still have the higher rates? And have lost value in their homes and cant refinance?
I would hope that they would continue to pay their mortgage.
Just because mortgage rates drop doesn't mean everyone should refinance. Some people are in good mortgages with good rates and there is little to no financial incentive to refinance.
SO true for us--we have a 2nd mortgage and instead of refi--it makes more sense to apply the extra $$$ to that loan sinc eits only like 80K.
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| Posted 1/3/09 7:41 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What do you think the future holds for the Housing market?
Posted by shamrock124
Posted by sometimesmommy
Rates will go down but what about all the people who still have the higher rates? And have lost value in their homes and cant refinance?
I would hope that they would continue to pay their mortgage.
Just because mortgage rates drop doesn't mean everyone should refinance. Some people are in good mortgages with good rates and there is little to no financial incentive to refinance.
you can't refi unless there is a benefit to the borrower
so if the loan doesn't make sense to refi the bank wont even do it
you must be saving at least $100 a month or it wont be approved
personally - in NY I don't think that is enough - the closing costs here are much higher then in most other states
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| Posted 1/3/09 7:43 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
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Re: What do you think the future holds for the Housing market?
I wonder if the lower interest rates will help people afford more and therefore help house prices, but like most people said...I think it's going to continue to dip in 2009...
not as bad as some areas though...MIL was telling me that $300K houses in Phoenix by her are now going for $60K!! that would hurt - i guess I can't complain about taking a 20-30K hit
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| Posted 1/4/09 9:21 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What do you think the future holds for the Housing market?
Posted by Erica
I wonder if the lower interest rates will help people afford more and therefore help house prices, but like most people said...I think it's going to continue to dip in 2009...
not as bad as some areas though...MIL was telling me that $300K houses in Phoenix by her are now going for $60K!! that would hurt - i guess I can't complain about taking a 20-30K hit
Florida I heard was like this tooo-ouch.
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| Posted 1/4/09 9:23 AM |
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wcs3504
my boys
Member since 2/06 2506 total posts
Name:
Wanda (formerly cw0904 on LIW)
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Re: What do you think the future holds for the Housing market?
It is going to get worse before it gets better. New laws have been put in place in NYS and thus, its delaying the foreclosure process. The banks have to do so much BEFORE a complaint is filed that it will take at least an additional 3 months more after someone has defaulted on their loan. Instead of a foreclosure action starting around 3.5 - 4 months, it will take about 6+ months. Since these laws have been put in place (Sept '08) our clients have ceased forwarding over many files to us due to the requirements they have to fulfill even before a file goes to oustide counsel to begin the action. So next year, you will see ALOT more foreclosures in NY.
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| Posted 1/4/09 11:48 AM |
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