The Collected Works of Author and Blogger Larry Roberts

Archive for March, 2014

HAMP loans were bundled into mortgage-backed security pools purchased by the federal reserve with printed money, making foreclosure politically impossible. Borrowers were granted loan modifications either through HAMP or through a private program. Most borrowers don't realize the loan modification program matters a great deal. HAMP loan modifications will become a permanent entitlement; private loan modifications will become a future foreclosure. Private loan modifications are tomorrow’s distressed property sales. The path of a HAMP modification When a borrower can't afford their payments, they may be eligible for a HAMP modification. As Mike noted last year defaulting on your home now includes automatic enrollment into a loan modification program because the Obama administration broadened the parameters so much that nearly everyone…[READ MORE]

The spring house price rally of 2014 shows signs of weakness because buyers can't afford higher house prices at higher interest rates. Most housing analysts predicted a robust spring rally with increasing home sales and increasing prices. In the post Bold California housing market predictions for 2014, I outlined my reasoning for why it would not come to pass. The new mortgage regulations change how real estate markets work, and real estate analysts, realtors, and financial reporters failed to grasp the implications of the new changes. When house prices go up absent an increase in wages, affordability declines. In simpler terms, if potential buyers don't make more money, but prices go up anyway, fewer buyers can afford to buy, and…[READ MORE]

Contact us before you register with the builder we will accompany you to the registration and refund you anything over 1.5% offered by the builder. Welcome to the first of the Great Park Neighborhoods. A community of beautiful new homes on tree-lined streets, designed to celebrate the very best of Irvine. With a focus on family and friends. Personal health and well-being. Walking and biking. The bounty of nature and food fresh from the garden. Top-ranked public schools. And this is just the beginning… The Big Picture In Irvine, around the perimeter of the Orange County Great Park, there is a new kind of community taking shape. A collection of unique neighborhoods joined together by walking and biking trails, which…[READ MORE]

A housing bubble bust in China may prompt Chinese investors to dump their California investment properties to generate cash to pay debts to Chinese banks. Chinese citizens invest in housing because it's one of the few investment opportunities available to them. Until recently, there were no property taxes in China, so it cost very little to own property, so many Chinese invested in real estate as a store of wealth. Once valuations became detached from any fundamental value based on cashflow, the Chinese housing market became a Ponzi scheme similar to the US housing market during our bubble -- except that the Chinese bubble is much, much larger. Is it ready to burst? A Chinese housing market crash could be…[READ MORE]

Housing analyst and consultant Christopher Whalen is advising clients that home price appreciation passed its cyclical peak in mid 2013. Is the party over already? Kool aid flows, realtors promise double digit home price appreciation forever, and the financial media convinces everyone the so-called recovery is on solid ground. Happy days are here again: buyers brim with excitement; sellers count their equity; realtors imagine big commissions. Isn't that the way it's supposed to be in California? Unfortunately, with the abrubt taper of institutional home buying, and the levling of home prices on low volume, the wild rally of 2012/2013 petered out, but the market will be "normal" now and appreciate slowly, won't it? Christopher Whalen: The single biggest question facing…[READ MORE]

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