As our mortgage broker at our office said, what the government giveth, the banks taketh away.
Apparently, someone at the bank didn't think that the 90 flip rule should be shared with regular Joe homeowner, only the banks should be allowed to move their inventory. Hence, we end up today with joint decision-making between some of the big banks like Wells Fargo, B of A, Chase, etc.) who determined that this will no longer pertain to individual sellers. And of course, these cats hold the purse strings because as FHA lenders, they determine who gets a loan and what those terms will be!
*Exemption was extended through 12-31-11. However, the investor decision is that this does not pertain to individuals who have purchased and are reselling a home within 90 days. This DOES include HUD REO's, Sales by Federal Agencies or federally chartered institutions and GSE's and approved non-profits.
*There are still overlays to the above approved purchases which usually means that these banks/investors will not purchase a property that has increased in value more than 20% or acquired within the last 90 days.
*In addition, if a property is being turned over between 91 and 180 days and the sales price is
100% or more over the price paid by the seller, a 2nd appraisal is required but at no additional charge to the borrower.
This all says to me, the layman, that once again, what is good for the government is not for us to use. Saving all the good stuff for themselves and leaving taxpayers to hold the bag! Sorry, but keep in mind, some of these distressed properties are still a great deal and deserve a once over!
Brooke
Showing posts with label banks. Show all posts
Showing posts with label banks. Show all posts
Wednesday, February 02, 2011
Tuesday, February 03, 2009
Bailout Package
Hi All!
Heading to a board of aldermen meeting here in an hour or so and had a few minutes to write while Maddie is watching Andy Griffith and I am watching the snow fall. I hope that it sticks around!
Well, the title of this piece is about the bailout...I don't have a tremendous amount to say, or a great deal of details but it does reinforce several principles that I believe in:
*Any bill sent through the House or Senate should be "clean"--no stuff attached to it, no special projects, nothing to sweeten or entice representatives--simply put "No Pork" and the president (whoever he may be at the time) should have line-item veto.
*Remember back in October, when the world as we knew it was going to simply cease to exist? Banks would go belly-up the next day, bread lines would form, the value of the dollar would plummet further than it already has and gas lines formed while gas prices soared? The BIG government (including folks I voted for & some I didn't) demanded a HUGE bailout--immediately...WELL, here we are, still no bailout and now we are in the midst of spend, spend, spend...here comes INFLATION!
*Could you use a million or two, or heck say a couple hundred thousands...well, while you and I cut our personal budgets, cease to spend on any extras and basically go on a pinto bean diet...the government wants to borrow and spend MORE of your hard-earned money! I don't suggest that we borrow money from China to give each taxpaying American a portion, I say, we don't borrow at all...
*IF WE DO BORROW...we must focus-focus! Housing--not bailing folks out, but making more money available to borrow to the average American...allow money to get to "Joe-Investor" who will buy up the foreclosures and short sales...they can fix them up, rent them out to the folks who have been displaced and eventually as the housing market stabilizes, they will sell them...contractors will be employed, goods will exchange hands, laborers will be back in business...FIX HOUSING & BANKING, not the arts, or contraceptive programs, or museums, FIX THE BASICS!
*Support the folks who don't take government dollars...THERE ARE BANKS out there who had good, solid lending practices. They loaned to folks who had good credit, assets and money down...yes times may be hard for these folks, but they are paying their bills and other people's too! Some of these banks turned down TARP money--yes, you heard me right! Turned it down! They are cautious and understand that taking government bailout money makes them beholden to the government...Keep in mind Ben Franklin's mantra: A government big enough to help you is a government big enough to control you....that's paraphrased folks and could have been Thomas Jefferson...nevertheless, you get my point!
Heading to a board of aldermen meeting here in an hour or so and had a few minutes to write while Maddie is watching Andy Griffith and I am watching the snow fall. I hope that it sticks around!
Well, the title of this piece is about the bailout...I don't have a tremendous amount to say, or a great deal of details but it does reinforce several principles that I believe in:
*Any bill sent through the House or Senate should be "clean"--no stuff attached to it, no special projects, nothing to sweeten or entice representatives--simply put "No Pork" and the president (whoever he may be at the time) should have line-item veto.
*Remember back in October, when the world as we knew it was going to simply cease to exist? Banks would go belly-up the next day, bread lines would form, the value of the dollar would plummet further than it already has and gas lines formed while gas prices soared? The BIG government (including folks I voted for & some I didn't) demanded a HUGE bailout--immediately...WELL, here we are, still no bailout and now we are in the midst of spend, spend, spend...here comes INFLATION!
*Could you use a million or two, or heck say a couple hundred thousands...well, while you and I cut our personal budgets, cease to spend on any extras and basically go on a pinto bean diet...the government wants to borrow and spend MORE of your hard-earned money! I don't suggest that we borrow money from China to give each taxpaying American a portion, I say, we don't borrow at all...
*IF WE DO BORROW...we must focus-focus! Housing--not bailing folks out, but making more money available to borrow to the average American...allow money to get to "Joe-Investor" who will buy up the foreclosures and short sales...they can fix them up, rent them out to the folks who have been displaced and eventually as the housing market stabilizes, they will sell them...contractors will be employed, goods will exchange hands, laborers will be back in business...FIX HOUSING & BANKING, not the arts, or contraceptive programs, or museums, FIX THE BASICS!
*Support the folks who don't take government dollars...THERE ARE BANKS out there who had good, solid lending practices. They loaned to folks who had good credit, assets and money down...yes times may be hard for these folks, but they are paying their bills and other people's too! Some of these banks turned down TARP money--yes, you heard me right! Turned it down! They are cautious and understand that taking government bailout money makes them beholden to the government...Keep in mind Ben Franklin's mantra: A government big enough to help you is a government big enough to control you....that's paraphrased folks and could have been Thomas Jefferson...nevertheless, you get my point!
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