June 20, 2009

Newflash

There is an abundance of information on the web today. Keeping track of it all has become a real learning experience. The Google reader program is so helpful. One of the most up to date websites and Twitter contacts for me this week is Lillianwong. I am adding her on my right side bar under "New Contacts", Arizona Real Estate News Access.

Lilian is a Senior Mortgage Officer at Bank of America. She provides stock market, real estate and mortgage information. Her blog is straight forward and very informative. Wow! Thank you Lillian.

Lillian just published a short blog stating the banks have risen the interest rates slightly this past week and people are again hesitating to purchase homes. The news said our inflation rate is under control. Why would the banks raise the residential mortgage rates when the FED rates are so low? Our government stimulus money has been dispersed to these banks to provide buyer incentives to purchase homes, reduce foreclosures and short-sales. April and May had relative real estate success. There is a real need to keep these rates low or else these banks will get more homes in foreclosure.

Banks do seem to be working with the Obama mortgage programs that help keep troubled homeowners in their homes. California just extended a foreclosure moratorium for another 3 months. So, troubled California homeowners now have more time to stay in their homes. But why aren't these banks refinancing?

Of special note. I met a gal who said the market turned bad suddenly and she lost 3 jobs over the past year. She was a secretary for a local attorney for about 3 years when business got slow. She was laid off. She went to work at a motorcross sports company and lost her job after three months of employment, due to the business slump. Then she worked as a secretary for a Realtor who specialized in short sales and foreclosures. The banks reduced payments to the real estate company causing employee layoffs. Now she is with a title company and working full time.

Through all of this, the gal made payments to the mortgage company by borrowing money from her brother. She called the mortgage company and spoke to many bankd employees throughout the country. She talked to anyone and everyone who had responsiblity for mortgage refinancing within the firm. After many calls, she finally found someone willing to help her. The bank representative said that she was the perfect candidate for Obama's financial aid package. The representative said they were most willing to help those who had current payments but were in dire need of assistance. The home had to be in good condition and maintained with pride of ownership. The bank sent an appraiser over to take photos to confirm the home was in good condition. Based on her circumstances, the bank provided the gal with a 2.5%, 30 year fixed loan. This gal sees light at the end of the tunnel. With her new job, she can slowly pay her brother back and still make her new mortgage payments.

Here is a case where persistence and determination helped to keep one homeowner in her home. I hope to hear more success stories like this one. At least we then know some of our tax monies are truly going to those in need.