US 10 year Treasury hits 3.7% resistance level – get ready to kiss more of your equity good bye

The 10 year Treasuries hit an intraday high of 3.7% which is the highest it has been in 9 months versus a low of 2.33% in October.

The 10 year Treasuries are used in determining interest rates for and have a high correlation with 30 fixed rate mortgages. So in practical terms we will see 30 year fixed rates now go above 5% versus 4% a couple of months ago.

In fact I know a person that was able to get a 30 year fixed close to 3.75% with 1 point just a couple of months ago. The difference between now and last spring is that the Federal and State subsidies for homebuyers are now gone.

Interest rates up – home prices down assuming income and housing inventory is the same.

 

John Paul Ledesma

 

New FHA condo requirements – many local condos losing FHA approval December 7, 2010

 

New FHA condo requirements
HUD recently announced it is implementing new FHA condo requirements and new certification and recertification programs.

Condominium and townhome developments must have FHA approval to qualify for a FHA loan (purchase or refinance) due to rules implemented in February 2010.  Spot approvals for individual units are no longer permitted.  Condominiums approved prior to Oct. 1, 2008, must be recertified by Dec. 7, 2010.  The recertification process may be performed by HUD via an HRAP Submission or by a lender with Direct Endorsement authority (DELRAP submission). 

In addition to this certification requirement, beginning Jan. 1, 2011, in order for an FHA loan to fund, the condominium development also must meet the eligibility requirements at the time of underwriting to qualify for an FHA loan.

 

FHA Approved Condominiums

Interview with Ara Hovnanian, president & CEO of Hovnanian Enterprises

This is a link to a CNBC interview with Ara Hovnanian, president & CEO of Hovnanian Enterprises regarding the housing market. Ha basically is saying the same thing that I have been telling people.

Click here to see the interview.

Bill Gross Bailout, Government Motors IPO

Peter Schiff talks about Bill Gross’ comments on the bond market and residential backed mortgage securities. He says housing prices are still too high and mortgage rates are too low.

Bill Gross Bailout, Government Motors IPO, posted with vodpod

Mission Viejo City Council Candidates; 12 are running for the November 2 election

 

 

Patricia “Trish” Kelley, City Council Member

Brian Skalsky, City Commissioner

David “Dave” Leckness, Mission Viejo Councilman/Businessman

Rick Sandzimier, Mission Viejo Commissioner/Businessman

Fred Carr, Local Businessman

Ken Golemo, Consumer Marketing Consultant

Mark Dobrilovic, Commissioner/Financial Advisor

Sam Mamola, Trust Attorney/Businessman

Bill Barker, Registered Professional Engineer

Rhonda Reardon, Retired Business Manager

Lance MacLean, FDIC Operations Specialist

Neil Lonsinger, Retired Service Executive

 

The Candidate Statements are posted on the City Clerk’s Election Information page and can be accessed here:

http://www.cityofmissionviejo.org/DepartmentPage.aspx?id=11261

22921 Bergantin in the Tres Vistas in Mission Viejo

Custom European Estate in Tres Vistas is now in escrow after being on the market for 152 days. This is a short sale and the original list price was $1,350,000 and the current list price is $1,025,000.

The listing agent writes that it is an “approved” short sale.

Click Here: 22921 Bergantin

 

Mission Viejo: Target Symphony in the Cities, the Pacific Symphony Orchestra

Mission Viejo: Target Symphony in the Cities

Saturday, July 31, 4:00 PM – 9:00 PM, the City of Mission Viejo invites you to enjoy the 6th annual Target Symphony in the Cities concert held on the Village Green at Oso Viejo Park. Led by Music Director Carl St.Clair, the Pacific Symphony Orchestra will perform a musical repertoire, ranging from patriotic medleys to Broadway show tunes. For more information, please click here and here

22801 Bergantin, Tres Vistas Mission Viejo

Located in the Tres Vistas Mission Viejo’s most prestigious tract, 22801 Bergantin is back on the market after falling out of escrow. This home was purchased at a foreclosure auction back in October of 2009 and was originally listed at $999,900 and is now back on the market at $924,900.

The home has been painted and new carpet installed. The first floor has a bedroom and bathroom along with an additional guest ½ bathroom on the opposite side of the house. The kitchen flows into a great room complete with a bar. If you are looking for a larger (4,000 square feet) home and do not mind a little street noise this is a great buy.

Click here to view the listing

 

Free Filing of Annual Assessment Appeals

Free Filing of Annual Assessment Appeals

The Annual Filing Period for filing an assessment appeal began July 2, 2010 and will run through September 15, 2010. If you believe the value of your property is less than the assessed value established by the Assessor for the January 1, 2010 lien date, you can challenge your assessment by filing an assessment appeal. It is not necessary to use a tax agent or pay a fee to file an assessment appeal.

The Orange County Clerk of the Board has created an online e-file program that provides step-by-step assistance in completing your appeal form. You can locate the assessment appeals e-file program by clicking here. Workshops to better understand the appeal process and assist you in preparing for your hearing are held at various libraries throughout the County. Workshop schedules can be found by clicking here.

SB1178 Passes State Senate Changes Recourse Loans to Non Recourse Loans

The California Association of Realtors is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. Most homeowners didn’t even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender.

A non recourse loan means that only collateral for the loan is the property and a recourse loan is a loan where the lender can also personally pursue the borrower for any short pay amount on the loan. At this time in California all trust Deeds that are used to purchase a primary residence are in effect non-recourse loans but if you refinance then that new loan is a recourse loan.

Thank you to Mimi Walters, Tony Strickland, Jeff Denham and Ron Calderon for your no votes.