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Click here to view the Tucson Mortgage weekly newsletter.

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Click here to view the Tucson Mortgage weekly newsletter.

The topic: using the $8,000 tax credit up-front to help first time buyers purchase a home.

The problem: how do you give somone cash from a tax refund before the actually close on the home?  This is referred to as credit-monetization

The proposed answer: by lending it to them up front with a bridge loan IF AND ONLY IF they use FHA financing for the purchase. Who will lend the money? Supposedly large banks or bank affiliated mortgage lenders. In reality it will take a bit to see who steps up and puts the program in place but time is running out because the tax credit is only good for purchases closed by November 30, 2009.

Some of the other  items that need to be addressed, in addition to the money should include:

- Proof that a buyer does not have judgments, tax liens, back child support or wage garnishments that could bite into the tax credit

- Federal oversite to make sure there is no abuse of this potential program including mandatory caps on fees.

There has clearly been no better time to be a first time home buyer!

Call Todd Abelson & Tyler Ford for all your mortgage related needs at Sunstreet Mortgage, Tucson Arizona.

GM files for BK and Chrylser is being dissected and sold off in pieces. Both companies are closing plants, people are being laid off, Union & Dealer contracts are being broken and there’s alot of pain and suffering coming.

Where in the world are 4.0% interest rates NOW???

I can tell you that as SOON as rates touched on 5.0% the refi-craze was over. Most people under 40 think the world came to a standstill that day and that it will come to an end at 6.0%. Of course those of us over 55 KNOW that it won’t come apart until double-digits (remember the 80’s and the Carter years?).

Where in the world are 4.0% interest rates NOW???

Hey all you so-called financial experts that RAN from 4.75% thinking you were being ripped off? 4.anything is looking pretty good now, no?

Where in the world are 4.0% interest rates NOW???

The BALLISTIC increase in mortgage rates can only be explained as follows:

1. The economy appears to be improving and with it there will be inflation. Why? You can’t have the Gov’t pump TRILLIONS of dollars into the markets and not have repercussions.

2. The Dollar has taken a dive which pushed OIL prices through the roof and taken interest rates with it.

3. China, one of the biggest buyers of US Debt (aka “Treasuries”), intimated that they “might not” be buying as much in the future which caused bond prices to plummet (just like a stock being sold) and interest rates to rise.

4. The US has been auctioning off SOOOO MUCH DEBT in the form of Treasuries and Mortgage Backed Securities (remember those?) that supply totally outstrips demand. This also causes prices to drop and rates to rise.

Where in the world are 4.0% interest rates NOW???

At worst it was never here; at best its in your rear-view mirror…

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Click here to view the Tucson Mortgage weekly newsletter.

Brought to you by Andrew Cuomo, NY AG, in an attempt to stabilze the home market and eliminate inflated home values it is absolutely guaranteed to keep the real estate component of the recovery on its knees.

How can one program do this? Tantamount to what HMO’s did to the medical industry, HVCC will do to the Real Estate industry. Although the intent was good, the program leaves much to be desired. The goal - eliminate undo influence on the Appraiser to “hit a number” - this program severs any ties between Originator/loan production groups and the Appraiser. Sounds good until you look under the cover - increased “administratum”, increased costs, increased delivery time, lack of ability to work with a provider of choice, reduced income for the selected provider, and potentially less quality in the deliverable. Sounds like an HMO right?

Attached is a fine article written by Kenneth Harney describing what I’m calling “the nightmare” - two minutes of worthwhile reading.

Don’t like it? Call your congressmen/women.

Call us, Todd Abelson & Tyler Ford and Sunstreet Mortgage for all your Arizona Mortgage Needs!

hvcc-nightmare

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Click here to view the Tucson Mortgage weekly newsletter.

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Click here to view the Tucson Mortgage weekly newsletter.