Early occupancy- When the seller allows the buyer to move in before the sale is closed

Earnest money deposit- Money given by a buyer when making a formal offer to demonstrate that the buyer is serious. Also called a deposit

End loan- The final mortgage on a property, as opposed to a construction or other interim loan

Equal credit opportunity act- Also referred to as ECOA. A federal law that prohibits discrimination in credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, source of income or the exercise of any right under the Consumer Credit Protection Act

Equifax- One of the three largest credit bureaus, along with Experian and TransUnion

Equity- The value of a homeowner’s unencumbered interest in real estate. Equity is the difference between the home’s fair market value and the unpaid principal balance of the mortgage and any liens. Equity increases as the mortgage is paid down and as the property appreciates in value

Escrow- An account in which a neutral third party holds the documents and money in a real-estate transfer until all conditions of a sale are met. Also, an account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made

Escrow account- An account in which a neutral third party holds the documents and money in a real-estate transfer until all conditions of a sale are met. Also, an account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made

Experian- One of the three largest credit bureaus, along with Equifax and TransUnion

Fixed- Does not change. Rate is the same for the life of the loan

Fair credit reporting act- A federal law that governs what credit bureaus can report and for how long. It outlines procedures for correcting errors in credit reports. It requires credit bureaus to furnish copies of consumers’ credit reports at their request

Fair market value- The value that your home would be worth given it is in good condition. It is also a value where similar or like properties are used to determine price

Fannie Mae- The largest mortgage investor, a government-sponsored enterprise that buys mortgages from lenders, bundles them into investments and sells them on the secondary mortgage market. Also referred to as a GSE (government sponsored entity)

Federal housing administration- Or FHA. An agency within the federal Department of Housing and Urban Development that provides mortgage insurance and sets construction and underwriting standards. The loans are backed by the Federal Government

FHA- An agency within the federal Department of Housing and Urban Development that provides mortgage insurance and sets construction and underwriting standards. The loans are backed by the Federal Government

Fee simple- Outright ownership of real estate, free of any liens or other claims against title

FICO scores- The most commonly used credit score. The name comes from the Fair Isaac Corporation, which developed the scoring model. They are used to predict the likelihood that a person will pay his or her debts. The scores use only information from credit reports

Firm commitment- A lender’s promise to lend money to a specific borrower on specified terms at a certain time

First lien- A loan that is recorded first on a title. If there was a second mortgage it would be recorded behind the first lien or in second position

Fixed rate mortgage- The rate remains the same for the life of the loan. It never changes

Flood insurance- A policy that pays the homeowner for damage caused by rising water. It does not reimburse the owner for falling water, such as rain falling through a hole in the roof, but pays for damage stemming from flooding.

Forbearance- An agreement entered into with your lender to allow a certain amount of payments over a certain amount of time to bring a delinquent mortgage current. It is a process that lenders will sometimes use to avoid foreclosure

Foreclosure- The legal process by which a homeowner in default on a mortgage is deprived of interest in the property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt

Freddie Mac- The second largest mortgage investor, a government-sponsored enterprise that buys mortgages from lenders, bundles them into investments and sells them on the secondary mortgage market. Also referred to as a GSE (government sponsored entity)

Front end ratio- the calculation of your consumer debt, for example credit card payments, car or student loans etc. and divided by your gross monthly income

Full market value- In real estate to receive full market value is also referred to as the asking price. It is paying or receiving the full price of the home.

GFE- Good faith estimate. Provided by lender to detail closing cost and any fees associated with your transaction. It will also define the terms of your loan, payment, interest rate etc.

Good faith estimate- GFE. Provided by lender to detail closing cost and any fees associated with your transaction. It will also define the terms of your loan, payment, interest rate etc.

Hazard insurance- Also referred to as homeowners insurance. It is the insurance that you would get to protect your home from fire, theft, damage etc.

HELOC- Home equity line of credit. It is a second mortgage that is a revolving line of credit sort of like a credit card except that is secured as a lien on your property

Home equity- The part of a home’s value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans

Home equity line of credit- Home equity line of credit. It is a second mortgage that is a revolving line of credit sort of like a credit card except that is secured as a lien on your property

Homeowners association- An elected group that governs a subdivision or planned community. It collects fees from owners to maintain common areas and enforce covenants, conditions and restrictions set by the developer and the association itself. Typically condominiums will have these associations

HUD 1 statement- The line itemized form of your transaction. All expenses, credits and costs are itemized

Impounds- Associated with a properties taxes and insurance. It is the money collected that will be held in an escrow account.

Initial interest rate- The starting rate in an adjustable mortgage. For example a 5/1 arm is fixed for 5 years. That initial rate for the first 5 years is the initial interest rate

Insurance binder- Written statement that warrants that an insurance policy will be issued on a property when title is transferred

Interest rate- The amount charged per month for money borrowed. The monthly payment is based upon the interest rate

Interest rate cap- A limit on how much a borrower’s percentage rate can increase or decrease at rate adjustment periods and over the life of the loan.

Interest rate ceiling- Specified in the loan agreement, the highest percentage a lender can charge for an adjustable-rate mortgage

Interest only loan- No principal reduction is required in the monthly payment. You are simply paying the interest that is due each month while not reducing the original balance of money owed

Introductory rate - The low rate charged by a lender for an initial period to entice borrowers to accept the credit terms. After the introductory period is over, the rate charged increases to the indexed rate or the stated interest rate. Often called a teaser rate.

Investment property- A property purchased solely for investment purposes. No intent is to live there. The intent is to rent or fix up and sell as an investment.

Jumbo mortgage- A mortgage where the loan amount is higher than that of the present conforming loan limit which is set by both Fannie Mae and Freddie Mac. The limits are 417,000 for a single family home, 533,850 for two family home, 645,300 for a three family home and 801,950 for a four family home.

Late charge- A fee imposed on a borrower for not paying on time

Lease- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period

Leasehold estate- A tenant’s right to use a property for a fixed period

Legal description- A way of identifying a piece of property in writing that is acceptable to a court

Liabilities- What you owe to creditors. For example your credit cards are a liability. It is the loans that you have outstanding that are considered your liabilities

LIBOR rate- LIBOR stands for London Interbank Offered Rate. It’s the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets and can be found in the Wall Street Journal. In general, its changes have been smaller than changes in the prime rate. It’s an index that is used to set the cost of various variable-rate loans, including credit cards and adjustable-rate mortgages

Lien- A legal claim against property for payment of a debt or for services rendered. One who holds a lien has the right to sell the property to obtain the money, or to recover the money when the property is sold

Life cap- The highest rate that your loan could adjust to over the life of the loan

Line of credit- An approved amount given to a borrower. It is usually referred to as home equity lines of credit or HELOC’s

Lis pendens- A pending lawsuit; in real estate, the constructive notice filed in public records that a legal dispute exists over a piece of property. It is typically filed once a property has gone into foreclosure. It also freezes the property’s title

 Listing- The public offering of your home for sale

Loan application- A document in which a prospective borrower details his or her financial situation to qualify for a loan

Loan application fee- A fee charged upfront by some lenders to process a loan application

Loan Classroom- A web site that teaches and informs on the mortgage market, real estate market, financial market, the mortgage process and has great blogs by matt isleib

Loan commitment- A lender’s promise to lend funds for a loan

 Loan origination fee- A charge levied by a lender for underwriting a loan. The fee often is expressed in points. A point is 1 percent of the loan amount

Loan processing fee- A charge levied by a lender for accepting a loan application and gathering the supporting paperwork

Loan term- The time frame of your loan. For example a 30 or 15 year term

LTV- Loan to value ratio. The outstanding amount you owe divided by the current value of your home. For example you owe 200,000 and your home is worth 300,000, your ltv would be 66%

Lock - A lender guarantees delivery of a said rate for a specific period of time

Locked and Floated- A lender guarantees delivery of a said rate for a specific period of time and during that time if rates improve they will get a better interest rate

Market conditions- Factors that affect the sales of homes in an area, such as interest rates, the unemployment rate, home appreciation, weather and time of year

Market value- The price at which a given property or product sells between a willing, unpressured buyer and seller who know all the pertinent facts about the property or product

 Median price- In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.

 Minimum payment- The least possible amount that you are required to pay

MLS- A shared compilation of detailed information on properties for sale in a certain area. This allows agents to show and sell listings held by offices other than the one they’re associated with. The MLS is usually available only to Realtors

Modification- A change to the original terms of the loan agreement. Typically if a borrower runs into financial difficulty they can attempt to work out a loan modification with the lender

Mortgage- A legal agreement that uses property as collateral to secure payment of a debt. The legal agreement means that when a mortgage is on a house, the lender can take possession of the house if the borrower stops making payments

Mortgage banker- One who originates home loans, sells them to investors, services monthly payments and handles escrow. Some mortgage bankers sell their loans on the secondary market

Mortgage broker- One who finds lenders for prospective borrowers who meet the lenders’ criteria. A mortgage broker does not make the loan, but receives payment for services

Mortgage insurance- Also known as MI or PMI (for private mortgage insurance). A policy that protects the lender by paying the costs of foreclosing on a house if the borrower stops paying the loan. Although mortgage insurance protects the lender, it is paid monthly by the borrower. Mortgage insurance usually is required if the down payment is less than 20 percent of the sale price

Mortgagee- One who lends for the purchase of property, using the property as collateral to assure payment

 Multifamily property- Either a two, three or four family property 

 Negative amortization- A gradual increase in mortgage debt that happens when the monthly payment does not cover the entire principal and interest due. The shortfall is added to the remaining balance to create “negative” amortization

 No cash out refinance- A refinance where either the monthly paymnet is lowered or the term reduced.

Non assumption clause- A provision of a home loan that prohibits the transfer of the mortgage to another borrower without the lender’s permission

Non recurring closing costs- One-time fees paid at a real-estate settlement, including origination, appraisal, points, title insurance and credit report

Nonrecourse loan- A loan that is secured by collateral, such as real estate, for which the borrower is not personally liable

Note- A promise to pay a debt

Note rate- The interest rate at which you repay your promised debt

Notice of default- A step in the foreclosure process in which the lender formally tells a court that the borrower is in arrears

Open house- A selling tool in which a real-estate agent advertises a property for sale and invites people to visit without making an appointment.

Origination fee- A fee that the lender or mortgage broker charges to process the loan

Owner financing- Financing that is all or partly arranged by the seller and not by a lender or bank

Option ARM mortgage- A potentially negatively amortizing mortgage that is adjustable and offers several payment options. Typically a principal and interest 30 or 15 year payment, an interest only payment and a minimum payment that is less than interest only and negatively amortizes the loan. 

Per Diem interest- Daily interest amount based on your note rate and the amount of your loan

Piggyback loan- A first and second mortgage taken out simultaneously. In most instances it would be done to avoid mortgage insurance or to stay at a conforming loan limit

PITI- Principal,interest,taxes and insurance

PITI reserves- Monthly reserves in either a bank or investment account to cover the  principal,interest,taxes and insurance of a property

Points- 1 percent of the loan amount. It can be “origination” points that are charged to process a loan or “discount” points that are charged to buy down the interest rate

Portfolio lender- A company that underwrites mortgage loans and keeps them on the books instead of selling them on the secondary market.

Pre approved- Your credit has been pulled and based upon your said income and assets you have an approved loan through an investor pending sending in the supporting documentation like pay stubs, assets etc.

Prequalification- Another term used for pre approved except it may be based solely on a credit report and not actually looked at by an investor

Preapproval letter- A letter given by investor to real estate agent confirming that they can qualify to purchase a home. It is typically a requirement to have one to even place an offer on a home

Prepayment penalty- A penalty that is enforced if you pre pay a large amount of the outstanding principal balance or refinance within a certain time frame. The penalty can sometimes be as much as 5 percent of the loan amount

Prepaids- Are referring to your odd days interest, taxes and insurance

Prime rate- A common benchmark for consumer and business loans set by banks, usually at a level 3 percentage points higher than the Fed Funds rate. The rate given to consumers on their loans is often determined as the prime rate plus a certain percentage, which represents the lender’s assessment of the risk in lending, plus its profit margin.

Principal- The balance of your loan outstanding excluding any interest or charges

Private mortgage insurance- A policy that protects the lender by paying the costs of foreclosing on a house if the borrower stops paying the loan. Although PMI protects the lender, it is paid monthly by the borrower. Private mortgage insurance usually is required if the down payment is less than 20 percent of the sale price.

Probate sale- Sale of property after the death of the owner, supervised by a court, with proceeds divided among creditors and heirs

Promissory note- A written promise to repay a loan by a specified time

Property taxes- Taxes figured on the value of property you own

Property values- The given market value or worth of one’s property

Purchase agreement- A document in which a property’s buyer and seller approve the price and other terms of the transfer of title. Also known as an agreement of sale, a purchase contract or a sale contract

Purchase contract- A document in which a property’s buyer and seller approve the price and other terms of the transfer of title. Also known as an agreement of sale, a purchase contract or a sale contract

Qualifying ratios- As calculated by lenders, the percentage of income that is spent on housing debt and combined household debt. The first qualifying ratio, called the front ratio, is the percentage of monthly before-tax income that goes toward a house payment. The back ratio is the sum of the house payment and all other monthly debt — credit cards, car payments, student loans and the like — divided by before-tax income

Quitclaim deed- A document that transfers the grantor’s interest in a title to property and is filed with a county recorder. It often is used among family members and can be used to clear up a gap in the chain of title

Rate lock-  A guarantee by the lender or mortgage broker that the agreed upon interest rate will remain for a said period of time.

Real estate agent- An individual who is licensed to assist a buyer or seller in purchasing or selling real estate

Real estate attorney- An attorney that specializes mainly in the transfer of property as well as housing, tax or land disputes. They may also specialize in foreclosure protection as well as any judgments or liens involved with a property or piece of land

Real estate broker- A person who is licensed to represent a buyer or seller of land and the buildings and other improvements on it and collect commissions for the work. Most brokers have agents working for them and collect a portion of their commissions in exchange for providing office space, marketing and other overhead

Real property- Permanent, non movable property, such as land and buildings

Recording fee- cost incurred by buyers and sellers of real estate. It is usually referring to the recording of the transaction at their town or city

Refinancing - Taking a new mortgage to pay off an existing one. One would refinance to lower their payment, the term of the loan or to take cash out or consolidate debt

Regulation Z- A rule, enforced by the Federal Reserve Board and implementing the Truth-in-Lending Act, that requires lenders to disclose all credit-related costs including the annual percentage rate

Rehabilitation loan- Financing obtained to cover any costs or building expenses to take a dilapidated property and fix it up

Relocation company- A business that specializes in providing help to employees who move for their employer. Typically the help is the sale and purchase of their existing and new homes

Remaining balance- The amount that is left to pay your loan off in full

Remaining term- The amount of time that is left on your loan

Rent loss insurance- Hazard insurance that pays for a loss in rental value or rental income if damage causes the property to become unfit for habitat

RESPA- Real Estate Settlement Procedures Act. Known as RESPA. A consumer protection law that requires lenders to give homebuyers advance notice of closing costs, which are payable at the closing or settlement meeting. It outlaws kickbacks and illegal markups in costs

Reverse mortgage- A special type of mortgage, sometimes called a reverse mortgage, that enables older homeowners to convert the equity in their homes into cash, using a variety of payment options to address their specific financial needs. Unlike traditional home equity loans or mortgages, a borrower does not qualify on the basis of income but on the value of the home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property

Right of first refusal- An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else

Right of rescission- The time period that a borrower has to rescind or decide not to go through with their refinance. That time period is three days after the initial closing date of a refinance

Sale contract- A written agreement between buyer and seller that details price and other terms and conditions of sale

Second mortgage- A loan taken on a property that is in addition to their first mortgage. Typically HELOC’s or home equity lines of credit are the most common examples of second mortgages

Sellers market- A real estate market where there are more buyers than sellers of real estate. Usually during this period the top asking price is the accepted offer taken on a sale 

Servicer- An organization that collects monthly mortgage principal and interest payments from homeowners and manages escrow accounts for paying taxes and homeowners’ insurance premiums. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market

Settlement statement- A document that details who has paid how much to whom

Short sale- A short sale, in real estate terms, is a sale of a house in which the sale price is less than what the owner still owes on the mortgage. It is a procedure sometimes agreed to by lenders, who would often would rather take a small loss than go through the lengthy and costly foreclosure process

Simple interest- Interest computed only by the principal balance. Not taking any principal payments into the equation

Spec or speculation home-  A home built as an investment. One that is built with no buyer in mind and just as an investment to hopefully profit from. It can be extremely speculative and risky

Starter home- A home that is usually lower in price and purchased by a first time home buyer.

Subordinate loan-  A mortgage whose priority is below that of another mortgage, for example a second or third mortgage or a home equity loan

Subprime mortgage- A mortgage granted to a borrower considered subprime, that is, a person with a less-than-perfect credit report. Subprime borrowers have either missed payments on a debt or have been late with payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may run into trouble or default

Tenants in common- Ownership by two or more people in which each person owns an undivided interest in the entire property and all have equal rights to use the property. When one tenant in common dies, that person’s interest may be sold, mortgaged or transferred to another in a will

Term- the length of time of your loan. For example a 30 year or 15 year term

Title - Ownership of real property to the exclusion of anyone else’s right to claim the property. Evidence of title is recorded in a deed and held in a county recorder’s office. The terms “title” and “deed” often are used interchangeably; strictly speaking, the deed is the document and the title is the ownership right that is recorded in the deed

Company that checks a property’s title for liens and other obstacles to sale, fixes any clouds to title, supervises the closing transaction, and makes sure that money transfers in a purchase are processed correctly

Title insurance- A policy that guarantees that an owner properly has title to a property and can legally transfer title to someone else. Should a problem arise, the title insurer pays any legal damages

Title search- The actual search of a property title and its chain of owners at city or town hall of records

Total expense ratio- The percentage of monthly debt payments compared to total before-tax income

Trade line- An account listed on a credit report. Each separate account is a different trade line

Transfer tax- A levy by a state or local government on the change of ownership of real estate

TransUnion- One of the three major credit-reporting agencies, along with Experian and Equifax

Truth in lending act- A federal law that requires lenders to provide certain information so borrowers can compare one loan to another. The most important facts lenders must provide are: finance charges in dollars and as an annual percentage rate (APR); the credit issuer or company providing the credit line and the size of the credit line; length of grace period, if any, before payment must be made; minimum payment required; any annual fees; and fees for credit insurance, if any

Underwater- your property is worth less than what you owe on your mortgage.

Underwriting- the investors review of the loan application for final approval or denial

Variable Interest rate- a rate that changes periodically based upon a certain index and the certain terms of the note                                                                                                                 

Verification of employment- a written or verbal verification from borrower’s employer

VA Loan- mortgage  given to qualified veterans and backed by the government

Walk through- final inspection of home being purchased usually done with your realtor

Zoning- classification that the local government gives to a piece of property to determine residential or commercial etc.

So in part I and part II we have pointed out that programs disappeared leaving borrowers with no options. We also looked at borrowers who have great credit but unfortunately no equity in their home to refinance. Part III is for the real estate investor.

Freddie Mac started this guideline and Fannie Mae soon adopted it as well. If you are a borrower that invests in real estate and you have more than 4 properties that are mortgaged you are not going to receive a loan from Freddie or Fannie. Four has become their max. If you currently have more than four properties the odds of you finding a mortgage have just become very difficult.

It will not matter how good your credit is or if you pay every mortgage on time, they will not lend you money. Your best bet is to try your local credit union or regional bank. You need to look for a lender that will portfolio your mortgage and not worry about selling it to Fannie or Freddie. Portfolio meaning that the lender keeps the mortgage on their books which is not common practice with larger banks or mortgage lenders; they sell almost all of their loans to either Freddie or Fannie.

Summed up if you are a real estate investor the odds that you will be able to find financing just plummeted, making the real estate investor number 3 on the “sorry facts for some borrowers”.

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

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The homebuilding industry continued its descent lower in December slowing to the slowest pace since 1963. This is the lowest pace on record. New home sales fell 14.7 percent in December to a seasonally adjusted rate of 331,000 the Commerce Department said Thursday. New home prices fell more than 9 percent from a year ago.

The 2008 annual figures are not much better. For the entire year of 2008 new home sales were down 38 percent from 2007. In 2008 builders sold 482,000 new homes chalking up the worst year since 1982 where 412,000 homes were sold.

Although for home builders the outlook is not very good there is one bright spot that we can look at to possibly get the ball rolling in our favor. Sales of existing homes increased in December! December outpaced November by 6.5 percent according to the National Association of Realtors. It is a sign that low interest rates and some real bargains in the market are starting to stir some buying. It is a very good sign. As I have said before now is the time to buy. This may not be dead bottom but buying here is without a doubt a win/win situation in the long run.

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January 15, 2009 I wrote about the sorry facts for some borrowers. In that blog I spoke of how one of the things that has bothered me through the mortgage mess has been the borrowers that “qualified” and received mortgages under programs that no longer exist. Today they are hard pressed to get a new mortgage. In fact there are basically no options for these borrowers. They are basically stuck for the foreseeable future with the terms and rate they currently have.

There is definitely another scenario to this that I failed to point out, the borrowers that have purchased home’s in the last three years. These borrowers purchased at or near the top of property values. If there were minimal down payments odds are they presently owe less than their homes are currently worth. It makes it impossible for them to take advantage of low interest rates.

There was a proposal that had made it to the senate to potentially address this issue. If the mortgage had been paid on time and the borrower’s credit profile was good and there only issue for not being able to refinance was the current value of their home that there would be a temporary “stay” for the need of an appraisal. The proposal has not been voted on yet and we will be closely watching to see if it does materialize

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

With interest rates dipping below 5% there has been a spike in refinance applications. There are a lot of homeowners that have second mortgages. While borrowing money below 5% is extremely cheap it does not always mean that it makes financial sense to consolidate your second mortgage into a new first mortgage.

For one a lot of people use the HELOC or “home equity line of credit” sparingly and may not max it out. They may pay it off sooner so combining it with a new first does not always mean it is the right choice. And for some people combining the two makes sense in their financial situation.

If you fall into the category of people that it makes sense to leave their second mortgages alone it does not mean that you cannot refinance. You can subordinate your second mortgage. What that means is that a request is made to your second mortgage holder asking them to subordinate their position or in other words remain in second lien position on your title. It does not always mean that they will agree to do so. In most instances they will. The subordination allows you to refinance your first mortgage and have it recorded on your title and then the second mortgage holder will still be in “second” position on the title.

You have to be approved from the new first lien holder as well as get an Ok from the second mortgage company to subordinate. Once the second company receives the necessary info they need to ok the process you can close on your refinance. Depending on the lender the subordination process can take anywhere from 1-3 weeks.

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

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On December 5th of 2008 I wrote a blog on this very subject. I said if you are looking to buy it was a great time. Fixed rates then had just cracked 6 percent. Home values were getting cheap and there were some great buys popping up. Let’s fast forward about 45 days to today. Rates are unbelievable! In fact they are the lowest the have been in over 50 years. Interest rates poked through 5 percent. Rates in my opinion look to hang around here for a while or continue to go lower. There are several reasons we are seeing mortgage rates plummeting. For one the Fed has been a huge buyer of 10 year treasury notes pushing the yield close to 2%. It is also in their best interest to keep rates at these levels for as long as possible to help stimulate an absolutely dead housing market. Secondly there is still weakness in the MBS (mortgage backed security) market. The combination of the two and the Fed wanting low rates to help in jump starting the economy has brought us to where we are today.

If you are a buyer now there are some absolutely silly home prices out there right now. You just need to look. I have seen and heard of some staggering discounts on property. Homes that had sold for $3 million and now are being sold via a short sale for $1 million, Property that had sold in the $300k range are now selling in the $175-190k range.

If you have the patience you will be rewarded in this market. There are just getting to be too many good opportunities out there. And to boot with rates being this low it makes it all the better.

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

We are entering roughly month 19 on my calendar of the financial meltdown. Over the past year and a half there have been a lot of fingers pointed at who is to blame for the meltdown. We have pointed the finger at Wall St, the banks, the lenders, the appraisers, the government, the fed, real estate agents, Alan Greenspan, Ben Bernanke, President Bush, Bill Clinton, mortgage brokers and even at one point my buddy’s grandmother was being blamed for the collapse. Ok I am kidding about the grandmother part. The point is the finger has run the gambit.

Grant Thornton recently conducted a survey of Bank Executives asking them to list three of ten possible reasons for the crisis. “Poor underwriting standards” was the winning choice at 54%. At second with a 46% response was “political emphasis on increasing home ownership,” while 44 percent blamed “lack of oversight of the mortgage industry.”

Another 40 percent of the respondents attributed the credit crisis to “inadequate understanding of risks,” and 39 percent selected “lack of oversight of Fannie Mae and Freddie Mac.”

Personally I have said that in my opinion Wall St. played a major role in the crisis. The paper that was sold had to have a secondary market somewhere for it to be marketable and I am 100% positive it was not an underwriter creating that market. But then again the survey was centered around Bank executives.

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