FHA is not the ONLY game in town but let's face the truth... it is the BEST resource you will have to get the BEST rate and it is what you have to rely on for forward opportunities within a continuingly tightening market.
Banks are creating more roadblocks, Government is trying to stimulate the economy by providing the banks money and lowering the interest rate, but the Federal Reserve has been slow to coordinate any activity with the Central European Banks; therefore as the United States rate goes lower - the European Rate stays the same... as the United States dollar decreases in value - the Euro value to US increases.
With the entire world rely on the US to consume their goods... and the US rely on the entire world to provide the goods, the US prices are increasing and with a lack of job growth and economic stability... all prices are increasing resulting in Americans buying ONLY the necessities and in some cases defaulting on the over-extended credit cards and investment opportunitites that now look like crap.
Banks are taking the hit when Americans are defaulting on the over-extended credit cards and investment opportunitites that now look like crap... Guess what the Banks do when they see that... BINGO - CREATE MORE ROADBLOCKS, because no one in their right mind will lend money to someone they know can not pay it back. They may give you money because they care about you getting on your feet again... if it is to their best interest to have you on your feet. SO GUESS WHAT... now the Government is trying to GIVE YOU MONEY!!! New legislation is passing left and right to stimulant bank lending policies and to stabilize the housing market, the FED Reserve afterall did cut the interest rate to 2% and they are continually flooding the FED Banks with $$$ money $$$ to lend to other banks.
This has been termed "the credit crunch." FHA maximum loan amounts jumped from $417K to $729K maximum as a result of this crunch and to help stimulate the housing market. Fannie Mae is currently preparing to provide programs allowing people to get UP TO 120% of the value to allow those affected by decending values to REFI with the expectation that prices will recover and people will be able to make their monthly payment. In addition, FHA is creating a new program where they will allow "credit challenged" Americans affected by "the credit crunch" to NEGOTIATE with the Bank to take a small loss on the total loan amount and accept a payoff that is reasonable to FHA Guidelines to avoid foreclosure and provide a lower payment with a lower interest rate to those that qualify financially. These are changes to be made... LORD KNOWS when! (I expect all adjustments will occur within 1 year - bureaucracy is slow.)
Have no fear though, A CHANGE is on the horizon and when these programs take off, it will have an impact on you... regardless of who or where you are. If you are breathing... you will be affected. In the meantime, if you are experiencing CASH FLOW problems, cut back on the spending and try to keep as much cash as possible in your pocket. If you have cash available you may want to consider taking advantage of the deflated home values and find a piece of property in a beautiful are for pennies on the dollar. Try to keep the ratio at 45 cents to a dollar. Take the time to learn how to BE SUCCESSFUL AT WHAT YOU DO. If you don't know then get the RIGHT people around you that are willing to teach you.
Banks are creating more roadblocks, Government is trying to stimulate the economy by providing the banks money and lowering the interest rate, but the Federal Reserve has been slow to coordinate any activity with the Central European Banks; therefore as the United States rate goes lower - the European Rate stays the same... as the United States dollar decreases in value - the Euro value to US increases.With the entire world rely on the US to consume their goods... and the US rely on the entire world to provide the goods, the US prices are increasing and with a lack of job growth and economic stability... all prices are increasing resulting in Americans buying ONLY the necessities and in some cases defaulting on the over-extended credit cards and investment opportunitites that now look like crap.
Banks are taking the hit when Americans are defaulting on the over-extended credit cards and investment opportunitites that now look like crap... Guess what the Banks do when they see that... BINGO - CREATE MORE ROADBLOCKS, because no one in their right mind will lend money to someone they know can not pay it back. They may give you money because they care about you getting on your feet again... if it is to their best interest to have you on your feet. SO GUESS WHAT... now the Government is trying to GIVE YOU MONEY!!! New legislation is passing left and right to stimulant bank lending policies and to stabilize the housing market, the FED Reserve afterall did cut the interest rate to 2% and they are continually flooding the FED Banks with $$$ money $$$ to lend to other banks.
This has been termed "the credit crunch." FHA maximum loan amounts jumped from $417K to $729K maximum as a result of this crunch and to help stimulate the housing market. Fannie Mae is currently preparing to provide programs allowing people to get UP TO 120% of the value to allow those affected by decending values to REFI with the expectation that prices will recover and people will be able to make their monthly payment. In addition, FHA is creating a new program where they will allow "credit challenged" Americans affected by "the credit crunch" to NEGOTIATE with the Bank to take a small loss on the total loan amount and accept a payoff that is reasonable to FHA Guidelines to avoid foreclosure and provide a lower payment with a lower interest rate to those that qualify financially. These are changes to be made... LORD KNOWS when! (I expect all adjustments will occur within 1 year - bureaucracy is slow.)
Have no fear though, A CHANGE is on the horizon and when these programs take off, it will have an impact on you... regardless of who or where you are. If you are breathing... you will be affected. In the meantime, if you are experiencing CASH FLOW problems, cut back on the spending and try to keep as much cash as possible in your pocket. If you have cash available you may want to consider taking advantage of the deflated home values and find a piece of property in a beautiful are for pennies on the dollar. Try to keep the ratio at 45 cents to a dollar. Take the time to learn how to BE SUCCESSFUL AT WHAT YOU DO. If you don't know then get the RIGHT people around you that are willing to teach you.
No comments:
Post a Comment