The Collected Works of Author and Blogger Larry Roberts

Archive for November, 2013

During the rally of the housing bubble, buyers responded to rising prices and higher interest rates with unbridled enthusiasm. Everyone believed house prices could rise without limit, and they would do so forever. It was a collective delusion fueled by greed, NAr sales propaganda, and foolish lenders who sought to make money from giving loans to those who wouldn't repay. The enthusiasm of buyers and homeowners was apparent. Real estate was the topic of every conversation. Stand in line at Starbucks, and you would overhear someone talking about how rich they were because their house was going up so much in value. If you didn't own a house, you were a "bitter renter," too stupid to take advantage of rising…[READ MORE]

When I designed the OC Housing News monthly market reports, my intention was to help people with their home search by pointing them toward undervalued locations and away from overvalued ones. These reports have great value to owner occupants, but they are even more useful to investors. Today, I want to demonstrate how to use the information in these reports to find areas where cashflow bargains abound. Very soon I will unveil a major website upgrade investors will find particularly interesting. As I will show today, the monthly reports I publish will guide investors on where to look, but that's only the first step. Knowing where bargains are isn't helpful information without the ability to identify which properties are good…[READ MORE]

We get questions all the time, how long must I wait before I can purchase a house after foreclosure, bankruptcy, or short sale.  Finally here is some valuable information. Chapter 7 Bankruptcy Chapter 13 Bankruptcy Fannie Mae 4 years (Chapter 7 or 11) Fannie Mae 2 years from discharge date Freddie Mac 4 years from dismissal (Chapter 7 or 11) 4 years from dismissal date FHA 2 years from discharge date Freddie Mac 2 years from discharge date VA 2 years from discharge date 4 years from dismissal date USDA Rural 3 years from discharge date FHA & VA 1 year of the payout must elapse and payment performance must be satisfactory. Buyer must receive permission from the court to…[READ MORE]

When interest rates are falling, which they were for most of the last 30 years, borrowers generally let their mortgage rate float until the last minute before committing. In a falling rate environment, there is no urgency to lock an interest rate. However, now that mortgage rates are rising -- and projected to keep rising -- home shoppers are locking in rates as quickly as they can. Ordinarily, lenders won't extend a rate lock for more than 60 days, but demand for this feature is so strong that some lenders are offering longer term rate locks to secure more business. Occasionally, the free market works. Lenders Extend the Clock on the Lock Recent Fluctuations in Mortgage Rates Are Prompting Home…[READ MORE]

Prior to the housing bust, when a borrower became delinquent, either they cured the loan quickly, or they were processed as a foreclosure. Banks didn't want to keep their capital tied up in non-performing loans, so foreclosure allowed them to force a sale of a property and get their money back so the lender could loan it to someone else. All that changed when house prices collapsed. At first lenders followed their normal procedures, but overwhelmed by the huge volume of delinquencies and crashing house prices, lenders aborted their normal procedures. It got so bad they convinced banking regulators to change the accounting rules so they could pretend their bad loans were still good so they wouldn't have to process…[READ MORE]

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