Having built a home in unincorporated King County a few years ago, I was introduced to the quagmire known as the building permit process at the King County Department of Development and Environmental Services [“DDES”]. The fees, the time, the various departments and their processes, was enough to ensure that I would not try it again. Having worked with several …
Watch For Miscellaneous Fees i.e., Check Your HUD Statement
I mentioned in a previous post that home buyers/borrowers will need to be on their toes as lenders will be trying to maximize profits from each transaction, at least in the foreseeable short term. The only way to know what you are being charged is by carefully reviewing your HUD [“Housing and Urban Development”] statement that you receive from your escrow …
Lending Supply and Demand
If you were among the multitudes calling your lender last week when mortgage rates dropped, you may also have been disappointed when you finally got through. On the heels of the FED’s historic 3/4 point rate reduction mortage rates temporarily dropped to as low as 5.125%. [See the LA Times Article “Interest-rate drop spurs frenzy of refinancing calls”.] But something …
Bank of America Acquisition of Countrywide
Bank of America agreed to purchase the remaining 84% it didn’t own for $4.1 Billion Dollars last week. Aside from a few regulatory hurdles it appears to be a done deal. The acquisition follows B of A’s August, 2007 investment of $2 Billion for stock in the company in an effort to stabilize Countrywide amidst looming foreclosures and credit woes. Hindsight points to B …
Thank You Mortgage Professor!
If it hasn’t happened to you, perhaps it has happened to someone you know. While interviewing potential lenders, whether to refinance or buy a new home, it is puzzling at best to discern what the various quotes mean. For example: (1) why is an interest lock free at one lender, but costs 1/4 pt (.25%) at another?; (2) why is the interest rate …
Seattle Times Saturday Headline: “Let The Buyer Rejoice” Oct 6, 2007
For the full text of the article referenced here, use THIS LINK. The focus of the story is the the sea change in the local real estate market. I don’t know if there is much for buyers to rejoice, other than the fact that there are more choices than there have been. But buyers have to be patient and smart …
Important Loan Tips For Owners and Buyers
Sometimes the best information regarding real estate is in the Saturday editions of the Seattle Times, rather than Sunday. This week there were two helpful articles, one for owners with adjustable rate mortgages and one for prospective buyers providing tips on getting ready to apply for a new mortgage. If you have an ARM that is poised to reset it is …
Sub-Prime Mortgage Mess Blame Game
I spotted a great article at CNN.com today which, in simple terms, defines the roles of those to blame for the current mortgage/credit problems. Borrowers, mortgage brokers, mortgage companies and banks, Wall Street, and the Federal Reserve are all named as co-conspirators. Use this link to read the article.
Media has “Lost It”, But it May Actually Help
While there is some very irresponsible reporting taking place in newspapers, on television, and especially on-line regarding the state of the housing industry and mortgage related problems, the ratings and ad-sales seekers may actually be helping matters. The “sky-is-falling” reporting may be enough to excite voters to contact legislators, who may in turn begin to exert enough pressure on the …
More Mortgage Madness
The past week has been one of turmoil and concern for both real estate buyers and sellers. Buyers are finding it difficult to get favorable mortgage terms, and sellers are seeing fewer buyers that qualify to buy, based on stricter underwriting requirements. THE MEDIA: TV and newspaper stories continue to publish half stories and half truths that confuse. More than …