The New Housing Bailout Plan

February 24, 2009 by Mark Roknich

The press is buzzing about the Obama Administration’s new foreclosure prevention plan. So what’s it all about?

Restructuring: part one of the plan makes available $75 billion of U.S. Treasury funds to restructure the loans of homeowners who are behind, or likely to fall behind, on their mortgage payments. The intent is for lenders to lower the borrower’s monthly payment to 31% of the borrower’s monthly gross income. This does not imply a principal reduction, but could include a reduction in interest rate.

This plan does not apply to investors, or those of us with jumbo mortgages, and the Treasury will not subsidize any mortgage adjustments that require an interest rate below 2% to get to the aforementioned 31% threshold.

Refinancing: the second part of the plan helps homeowners refinance into cheaper loans even if the homeowner is “upside down” on his mortgage. Fannie Mae and Freddie Mac, the quasi-government housing agencies, will refinance up to 105% of the value of the homes already held or guaranteed by Fannie and Freddie.

Recapitalizing: part three adds $200B to the money allocated to Fannie and Freddie in order to keep all this going.

So there you have it: the three-part plan from our national government. Now, of course, the Federal Reserve Bank is working through its monetary policy to backstop and stimulate with trillions; the Congress has also just approved a stimulus/bailout/spending plan for another trillion, so bucks are being borrowed and spent in order to soften the already hard landing we have been feeling in the real estate market.

Conclusion: does any of this directly or indirectly affect you? The answer is maybe directly, and probably indirectly. Neighborhoods with low turnover since 2005 have been less affected by foreclosures and short payoffs, as compared with other neighborhoods where turnover was high near the top of the market. If you and your neighbors have been in your homes for many years, that’s probably a good thing for all!

Some of us may be able to take advantage of the new bailout plan, which is supposed to be available beginning March 4th, when additional details are also supposed to be available. If you are interested in finding out how this all applies to your home mortgage – give us a call at (949) 240-5892, or drop us an email.

Share and Enjoy:

Filed under: Market Update
Tagged:

Love Where You Live!

February 24, 2009 by Christe Roknich

My signature tag line is “Love where you live…live where you love…” What do I mean by that?

I wake up each morning unemployed. That’s what running a small business is all about, right? Next, I begin each “work” day by asking people if they want to move, or if they are ready to buy or sell real estate. What I do works for me…knocking on hundred of doors, submitting ads, responding to ad calls and sign calls, calling past clients, friends and acquaintances, and maintaining great real estate websites. Whew!

Many tell me they would never move because they love where they live! What a great thing that is! Admittedly, we live in a phenomenal part of the world, and I am one of those who really cannot imagine moving any time soon.

Unfortunately, others among us are facing real unemployment. Our economy is leading many, even those who truly do love their homes and neighbors, to consider selling their homes. If you fall into this category, or know someone who does, please call me for a confidential consultation. I talked two families OUT of moving last week! Sometimes, you just need to hear another opinion or to learn that there may be other options.

On the other hand, if you would love to live somewhere new…please call me! Now is a phenomenal time to find the home that you will love at a price that you will also love!

“Love where you live…live where you love!
It all begins at home!”

Share and Enjoy:

Filed under: Christe's Corner
Tagged:

For Sale – 24392 Caracas, Dana Point

February 11, 2009 by Mark Roknich

Real Estate For Sale in Dana Point

We’re proud to announce the availability of another very nice home for sale in the Dana Point neighborhood of Sea Canyon! This great home is located on a cul-de-sac street, a block away from Sea Canyon Park, and about a mile or so from the beach. This great neighborhood is also close to Dana Point Harbor and Dana Hills High School.

And it just gets better once you step inside! You will find beautiful hardwood floors on the lower level, a remodeled kitchen with island, gas stove, and lots of storage, all designed for passionate cooks. The “great room” configuration includes fireplace, French doors, projection screen and surround sound.
This home also enjoys an absolutely magical backyard, perfect for entertaining, play, gardening…all with KILLER VIEWS of canyon, wildlife, and peek ocean view.

Looking for a cul-de-sac street? Do you prefer a home with NO homeowners’ association and NO Mello Roos taxes! Would you like a big backyard? If you answered “yes” to all three questions, then this home is for YOU!

Property Highlights