answers4u: (January 21, 2011 9:46pm)

Things may turn around for Gen Y adults still living at home once the credit score requirements drop for FHA and the cash that the First Time Homebuyer is saving is put to good use in buying an affordably priced home with price appreciation to look forward to in five years.

Appraiser Micro: (January 20, 2011 8:24am)

Nice 1 5pence. Our credit union offers a cc rate that is so forgiving with minimal penalties. The rate is typically less than 1/2 of big bank rates. Credit unions are where you want to do your important business.

rlittlefield: (January 19, 2011 1:51pm)

I think the major reason so many people are living with their parents is that only 30% of them can qualify to buy a house. I could be wrong but that is what I think.

DECychner: (January 19, 2011 1:30pm)

HUD has NOT issued a mortgagee letter yet or an official press release. The comments are based upon an article issued in the Los Angeles Times quoting the Deputy Assistant Secretary for Single Family Housing at FHA as saying "the agency expects to extend the current policy" meaning the flip waiver.

MNREagent: (January 19, 2011 12:55pm)

Anyone figure out to get these flips financed. From what I've seen, lender overlays always trump FHA on this one.

5pence: (January 19, 2011 11:09am)

Off-topic. Godlike, you mentioned that using a credit union wouldn't work for you because of money transfer problems (I think)? My credit union doesn't charge for wiring money to anywhere, no monthly checking, business or personal savings fees, no ATM use fees anywhere, no check cashing fees (like Chase and a few others) and other things I can't think of at the moment. I'm seeing Chase and B of A upping their giveaways (1% back, etc) all the while raising fees for all kinds of things. It appears to me that they need more depositors. If the government won't bankrupt them, then we can try to by taking our money out of the TBTF's and put them into banks and credit unions that support the local economy. Don't give them money to gamble with and most of all don't support their scams that take from the poor and give to the rich. For all, take your money out of these TBTF's and put your money to work in your local economy. I did a little over a year ago and I'm so glad I did.

dirtygreygoose: (January 19, 2011 11:00am)

Numbers taken from analyst from Moody? The same Moody that gave sub-prime paper an A rating? We can't find someone more trustworthy? If anyone really thinks housing recovery will take more than 10 years, stop what you are doing and go find another job in another industry.

courtney.depew: (January 19, 2011 10:49am)

Do you have the mortgagee letter regarding extending the FHA flip ruling? We do these everyday. I cannot find the official letter anywhere. Thanks!

ddurbin: (January 19, 2011 10:19am)

B of A takes more steps to endear itself to mortgage customers. "Too Big to Fail" or Too Big to Care? http://redtape.msnbc.com/2011/01/un-grace-ful-mortgage-payers-face-grace-period-fee.html

GetReal: (January 19, 2011 10:17am)

The correct way to value a house is according to rental income relative to the cost of financing. If lenders would loan up to, but not more than, that value, then when borrowers get in trouble they can move out and put in a tenant to cover the debt service. A lender must qualify either the property or the borrower (or both) on income to service the debt. The down payment does not make the monthly payments! Income valuations are usually lower than comparable sales (emotional) valuations. If a buyer wants to pay more than the income valuation, then the difference should be a cash down payment. Lenders should make loans based on what the lesser of what the property or the borrower can afford to pay. The down payment, if any, should be the difference between the valuation and purchase price.

Appraiser Micro: (January 19, 2011 9:32am)

And a follow up. The market tells me what a home is worth. When appraising, I always assign highest and best when appropriate. The market simply is lagging because of buyer affordability.

Appraiser Micro: (January 19, 2011 9:27am)

One more thing. Thank you for reading. I like to think of it in an old fashioned sense. Remember how robust small business was at a certain point when Americans typically owned their homes and land? Small business is fundamental to traditional American ideology. Low priced home buyers have greatly increased potential for a variety of opportunities. Why not support lowered home prices? After all there does not seem to be any sort of earnings recovery for the masses on the horizon. When the economic reliance moves back to a more isolated economic base intricately reliant on small business instead of corporations (other than the peoples government) , only then will we be sovereign again.

Appraiser Micro: (January 19, 2011 9:15am)

As a buyer, I tell my Realtor that there will be no talk of "strong offers". We have a strict budget per month expenditure expectation, and that's what the offer will be. If the home & general price range fit, we make the non-negotiable offer. / Housing price recovery should be considered separately from current owner affordability trends. Out with the old in with the new - should not have made foolish credit decisions. As rates are so low now, current buyers will be less able to refinance for equivalent payments in the future, and that hopefully will assist in re establishing more complete homeownership trends. / Economic recovery is benefiting from low prices, but in such a long term analysis that many don't give that much credence. Home pricing responds to reducing earnings potential and dollar value. There is too much economic reliance on a fast moving housing market. Slow it down!

voltaire3: (January 19, 2011 8:51am)

The 'Sand States" have a backlog of 20years of housing based on what rate of sales per year of existing and new homes (which should be nil). If Vegas has 10,000 homes for sale. That might be only one year when at the peak of sales in 2005 they sold 11,500 existing homes and 2,000 new homes. TBWS did not give us that detail and few news agencies will give us that. Rather say at the rate of 40 houses sold this month with will take 20 years to sell off the inventory. So what do you want to hear from the media? The details or some gross extrapalation??? Obviously you want to hear the exageration or they would not be selling that approach. COMPENSATION PANEL: Can we go and view it? The one that was done last Thursday I believe.

5pence: (January 19, 2011 8:48am)

CNN is predicting a Japanese style non-recovery for the US. Wow, big news {sarcasm}. If they're going to follow in Japans footsteps as they have been doing, is any other result to be expected? The strange thing is, they're acting like they're just getting it now ??- many lay people got it 2-3 years ago. No housing recovery means non-recovery. That's what happens when the government interferes and doesn't allow the markets to work the way they should, you get an illusory recovery for years to come - AND more transfer of wealth. Japans been in their non-reovery for over 20 yrs. Guess what I saw on CNBC, guess who the largest holder of US debt is - China? Nope - it's the Federal Reserve at $5.3 trillion. Can you imagine the interest on the debt we owe them?? That is a huge reason to End the Fed - to get rid of the interest payments we owe them for inflating the money supply and bailing out the banks around the world and supporting wars and etc, etc, etc....

Bono Vox: (January 19, 2011 8:08am)

I'm sorry, CNN is a respected news source? This generation is a bunch of slackers.....until they have kids. Then they'll realize they have to kick it in and work hard like the rest of us. Common cycle.

Ricardio: (January 19, 2011 7:44am)

The music at the end reminds me of the dancing dwarf from "Twin Peaks". Also makes me want a donut.

Carnivore: (January 19, 2011 7:08am)

I'd really like to know the music at the end of the show.

indyhomefinancedotcom: (January 19, 2011 6:37am)

I love mom's meatloaf. Since I moved her into my house a year and a half ago, I've got to eat it a bit more often. (about once a month) Thinking I'll have to build in-laws quarters for her in my new house!

USA Realty, LLC: (January 19, 2011 6:15am)

"SHARED EQUITY MORTGAGE" - Think big about it!

deblakeley: (January 19, 2011 6:05am)

Sorry, I guess this is a generational thing.....I think Will Ferretface is the most over rated person in the entertainment field. The S.O.B. is just not funny. He's about as humorous as 15% note rates.

jplapf: (January 19, 2011 5:59am)

Since I have been in the real estate industry since the early 70’s, I will give this word of advice: Homes are shelter first and when you can own for less than rent, as happens in Arizona, the buying decision is a no brainer. Change your focus from “investment” to shelter and you will see more sales. The older generation, who own their homes free and clear, understands this approach and will support your efforts.

Mike8307: (January 19, 2011 5:52am)

It's the old news adage. If it bleeds it leads. Bad news sells papers, sells ad space. The news media have no vested interest in positive stories, or even the success of this country, just the opposite.

Real Estate Nate: (January 19, 2011 5:24am)

I've been the listing agent on three flips that sold in less than 90 days in the last year. The buyers got the loans with a few extra hoops to jump through. There have to be two independent appraisals and the inspection has to be done in the name of the bank (mortgagee) and not the buyer.

NJmortgageguy: (January 19, 2011 3:56am)

Do any of the banks allow an FHA flip less than 90 days? I am a corresponded lender and none of the 8 banks we deal with allow a flip less than 90 days. I only know of one broker outlet that will but the buy back terms are so unattractive.

Divedude: (January 19, 2011 3:56am)

It's not just CNN with the misleading market reports. The local news stations my area come up with statewide averages which is irresponsible and often have no bearing on current, local market conditions. I wonder if this is where AMCs get their data.

EODJIM001: (January 19, 2011 3:46am)

Naples & Punta Gorda will recover long before that report stated. These are two desirable areas in Florida. My statement will definitely play out if unemployment declines and consumers feel more confident in the economy.

Wreckage: (January 19, 2011 3:45am)

Sounds like Moody's is admitting that it will take 20 to 30 years before the MBS secondary markets are healed from the catastrophic errors of the rating agencies. It also sounds like Moody's knows something we don't, such as the potential for the CDS derivatives (that they over rated) market to implode.

Wreckage: (January 19, 2011 3:44am)

Sounds like Moody's is admitting that it will take 20 to 30 years before the MBS secondary markets are healed from the catastrophic errors of the rating agencies. It also sounds like Moody's knows something we don't, such as the potential for the CDS derivatives (that they over rated) market to implode.

zorro1540: (January 19, 2011 2:48am)

So, MOODY'S has predicted that these markets will take 20-30 years to recover. Is this the same MOODY'S that predicted that mortgage-backed-securities comprised of sub-prime loans, were good investments? If so, then NOW IS THE TIME TO BUY!! Short the stock market and go long the housing market!