Citi Economist Says Housing Not Important - 11.03.10 | Vincent K. Mohr : First Priority Financial, Inc. : Fairfield, CA

Matrix: (November 16, 2010 8:29pm)

As Director of HUD Counseling Agency that has assisted over 3000 families cope with foreclosure I wanted to add these thoughts: (1) homeless people often access computers & internet via public library. Homeless people are not stupid. (2) HOPENow has been a sham for years. 4:1 loan mods? yeah, What KIND of loan mods? Are they as good as what HAMP offers? Why are HOPENow servicers trying to dissuade homeowners from using HAMP? Why won't servicers apply HAMP the way it is written? Servicers control the game, not Treasury. Why blame Treasury for the servicers' BLATANT refusal to apply HAMP as agreed? Unplug from the Matrix. See HOPENow for what it truly is: an attempt to discredit everything Treasury is trying to do to help when before HAMP, the best all these servicers wd offer is a "sure to fail" repayment plan. W/o HAMP on their heels, do you really think servicers wd be doing as many loan mods as they are? Really? c'mon now. HOPENow is self-serving. We're supposed to be thankful? Yikes

GODLIKE: (November 03, 2010 9:29pm)

I'm betting the OP was the realtor side of the duo that the screen name implies. I've found very few Realtors who want to know the truth. I wish I were wrong and he/she would post again and have a good source, it would do us all good.

Mike8307: (November 03, 2010 7:56pm)

I'd like to know what lenders are lending to recent short sellers. In lenders eyes, a short sale shows inability or unwillingness to fulfill obligations. If your P&I on a 30 yr fixed is $1500/mo. it won't change if your house has $100K equity in it or you're underwater. I'm sure that if there are major extenuating circumstances it might fly.. but you better have your tap dancing shoes on and tied tight. Otherwise.. its hard money for you....

GODLIKE: (November 03, 2010 7:39pm)

They actually tend to be more of a pain about short sales than I'm getting thru FHA or Conv.

GODLIKE: (November 03, 2010 7:39pm)

JWILCOX enjoy your USDA office because all of our offices (meaning my local offices and all the offices my USDA source deal with) want at least 3 years after the short sale.

jwilcox: (November 03, 2010 3:06pm)

Fannie, Freddie and FHA have all put the word out that short sales are to be treated just like a foreclosure. So NO borrowers can not short-sale their home and go buy another one. AND no most of my borrowers are not a day behind on their mortgages when they try to get a short sale through. Clearly if they were behind on their mortgage they wouldn't be trying to get another one. The only exception I have found it Rural Development. They have no rule or guidelines on a short sale. All I have had to do it provide them with the short sale agreement and we can close old and new home simultaneously.

GODLIKE: (November 03, 2010 2:27pm)

A customer's accountant just told her that in 2011 Married Couples will owe more in tax than unmarried couples. That's just the reverse of what it's always been. Any truth in that rumour?

Mrs. Kelly: (November 03, 2010 1:52pm)

If you guys think there's no federal money in the HopeNOW program, your crazy. You should take a closer look at the players.

GODLIKE: (November 03, 2010 11:04am)

If anyone has a lender who will do a loan for someone immediately after a short sale I'd love to know who it is. We don't see many short sales or foreclosures in Texas but there are still a few.

GODLIKE: (November 03, 2010 11:02am)

I recently had a lady who had a short sale 2 years ago and still couldn't get a new loan. I got her paperwork that showed she didn't have a deficiency judgement and sent it upstream to both Fannie and Freddie and they both said that was the very first time they'd seen someone come out of a short sale with no deficiency. Since the rules have now gone to 3 years before you can secure a new loan I've spent the last 3 days trying to find someone who will give a different borrower a loan after 2 years and have been unsuccessful. This borrower has 800+ credit scores, but only 10% down.

GODLIKE: (November 03, 2010 10:59am)

UTAH MTG a Short Sale is simply a voluntary foreclosure and as such there reflects a deficiency balance and a negative credit report. Fannie/Freddie & HUD recently talked about requiring an 8 year period from the time of the short sale to the time they could get a new loan if THEY deemed it to be a strategic foreclosure

GODLIKE: (November 03, 2010 10:56am)

Cuomo's the new Governor of NY. Does that mean he won't be meddling in our affairs any more?

Luxuryman: (November 03, 2010 10:54am)

As most of us homeless people know, the public library not only gives us a warm place to spend our days, but allows access to computers and the internet. Therefore, we are able to go 'online' and check with HUD and all of their special assistance programs for us living on the street. Just an FYI

The Yolo Pro: (November 03, 2010 10:42am)

Ok, I was late to yesterdays show, just watched it and just posted. But since nobody's reading that one anymore and because you're STILL talking about Ringo, let me ask... Which Beatle has the most hits as a solo artist? Nope, you're wrong. It's Ringo. Just had to throw that in there. Don't get me wrong. I'm a Paul guy myself. But I'm an appraiser. It's my job to point out the facts.

PAUL WILLINGHAM: (November 03, 2010 10:33am)

Economist are witch doctors. They shake their stats and rattle their charts and if we believe them enough we may follow their predictions and advice. But the simple fact is our centralized over bloated economy needs to be gutted. Wall Street needs to come down the banking system needs to come down the Federal government needs to come down. Then we can rebuild in a more appropriate and effective manner. We can decentralize the economy and put investing in the hands of the investor and government at a local and state level.

IL realtor & Mortgage Broker: (November 03, 2010 10:27am)

Wells Fargo Home Equity is now filing suit against property owners who COOPERATED to get the proporty SOLD in a short sale transaction. 3 of these so far and we did ask for a waiver of deficency before closing which was rejected. WATCH OUT!!

KCase: (November 03, 2010 10:12am)

The banks prefer to do foreclosures rather than short sales or loan modifications, because they can manipulate their 'books' or reports to their stockholders - they don't have to report a foreclosure immediately! But they do have to report a short sale or modification immediately!

KCase: (November 03, 2010 10:10am)

Mortgage Modification program offered by Mr. Obama only allowed a person to modifiy if they had a partner who died; or they were permanently disabled; or if the partners were separated and getting a divorce. No help for those who lost their income!!!! Big help! Big deal! Big LIE! Typical Washington smoke and mirrors!

ChrisSorensen: (November 03, 2010 9:53am)

Guy's, what am I missing? Of course HAMP has failed. Its offers a better modification than the Hope Now's Master Servicers proprietary modifications. Do you disagree? Am I wrong? Everything under the MFA program is voluntary. I respect your thoughts and would love to know if I am missing a point. To me it simply appears as a continued method of managing ones servicing portfolio and getting anything and everything you can from troubled borrowers since the bps increase while servicing a loan in this manner. Also they are protecting their seconds. Heck even the Federal Reserve Bank of Boston wrote that there is a perverse incentive on the part of the servicers to delay and foreclose. Thoughts?

Divedude: (November 03, 2010 9:06am)

Cuomo wins! I guess the general public is that stupid. Don't worry, we can still trash a governor.

Utah Mortgage&Real Estate Guy: (November 03, 2010 9:06am)

The bigger reason that most homeowners participating in a short-sale have credit report deficiencies is because that borrower is or was behind on their payments at the time of the sale. There are very distinct guidelines regarding mortgage lates on a borrowers credit report and when they will be eligible to apply for another mortgage. Their (potential borrowers) ability to apply and get approved for another mortgage in the future has nothing to do with the Short-Sale. The mortgage lates are the determining factor. Obviously in a foreclosure situation, this increases the time frame before a borrower can apply and be approved for another mortgage.

Utah Mortgage&Real Estate Guy: (November 03, 2010 9:00am)

Error: I have had more than 10 clients that have sold their home in 'SHORT-SALE' and everyone of them have the ability to go buy another home right now.

Utah Mortgage&Real Estate Guy: (November 03, 2010 8:59am)

Godlike: Short Sales are nothing like foreclosures. A foreclosure has very distinct guidelines as it is related to credit reporting and the borrower's eligibility to acquire another mortgage at some point in the future. A short-sale has no guidelines and realistically there ARE no underwriting guidelines that oppose a potential borrower from getting a new mortgage in the future. Whether a borrowers credit report/score is affected by them participating in a short sale is completely dependent on how the creditor/lender reports to the credit bureaus. If a borrower (seller) can get a bank to approve a short sale even though the borrower is current on their loan (something that was unheard of before the housing debacle); in all likelyhood these borrowers WILL HAVE NO CREDIT DEFICIENCIES after the sale. I have had more than 10 clients that have sold their home in foreclosure and everyone of them have the ability to go buy another home right now.

AbleRonny: (November 03, 2010 8:57am)

Uh, guys... Public libraries that I know of require identification document and an address - usually a local one - to use their facilities.

moreforless: (November 03, 2010 8:49am)

Show is informative and funny. I watch it every day. A question for the posters. How do I get a number on the amount of Short Sales for this year and last year nationwide? Do they (meaning lenders)even publish those numbers.

Owl Tree: (November 03, 2010 8:28am)

Barney Frank will soon be the former chairman of the House financial services committee. Our long national nightmare is over.

T Bone: (November 03, 2010 8:18am)

Can you break something on NAACA?

Mike8307: (November 03, 2010 7:46am)

Beat me to it Sabre.. Although, slightly more accurate than Obama's 57, yes?

Sabre: (November 03, 2010 7:37am)

Other 51 states?

jason: (November 03, 2010 7:26am)

C'mon fellas, you just want to be rough on HUD today. As any HUD spokesperson will tell you, they KNEW that the homeless would access this information from the public library!! ;-)

mountains: (November 03, 2010 7:18am)

A great show today! Thanks....

GODLIKE: (November 03, 2010 7:16am)

Foreclosures are up in the "outlying" areas because the media has made it trendy to have a short sale or foreclosure. People don't realize a short sale is a foreclosure they just think it's an alternative to selling. I run into these clowns all the time and they are amazed that they now have a credit issue. Way to go California, making it trendy in the other 51 states!

Mike8307: (November 03, 2010 7:11am)

Housing is a symptom of the economy, not an economic indicator. If you have readily available jobs people will feel confident enough to make long term plans. As the boys pointed out the private sector is much more adept at everything, from mtg mods to creating jobs. Jobs is the not goal of business but a by-product of business. If you desire to expand there is a good chance you'll need to bring on a few more people and pay them a salary. Unfortunately there has been little incentive to do so. We're constantly being told that profit and wealth are bad things to be taxed out of existence. Why bother putting capital at risk when your return on your investment will be brutally taxed. Consumer confidence was flat during the past 24 months because the private sector was the whipping boy of the current administration. Let's see what happens now.

GlennRoberts: (November 03, 2010 6:45am)

The reason the Seattle area increase was so dramatic %wise is because the number of loans on foreclosure was low to start with. Smirky remarks play well on your show and I enjoy it. So keep it up.

barbara: (November 03, 2010 5:33am)

Best source of free computer internet time. . .your local library.

My2Sense: (November 03, 2010 4:11am)

Nice stuff once again guys . . . btw HUD backwards is DUH ! The Banks have been understating all the problems since they started. Are they really that ignorant? NO! It's called "walking it down" when the sh*t hits the fan . . . and "Pay no attention to the man behind the curtain" until then.

5pence: (November 03, 2010 12:18am)

I just got the Zillow news - my house is up 4.4% in one month HAHAHAAAAHHAAA.

5pence: (November 03, 2010 12:15am)

Washington is a non-judicial state - maybe that's why? Sounds like they're concentrating on non-judicial states since judicial states are a total headache due to MERS - hence Chase halts foreclosures in 23 state - all judicial. Citi economist says housing not important??!!! Citi is not important and their economist. First time I'm the first post! Good show guys !