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Mortgage professionals (FNMA, FHLMC) predict declining prices on housing to continue through 2008 and 2009, and maybe rise again in 2010! And those may be the optimistic people!

Continuing foreclosures and piles of unsold houses will hold back any price rebound for some time yet. While nationally prices may be falling 2% to 4%, many places in FLORIDA are expected to suffer much larger declines.

New home sales are at a seven year low. Yep, we're back to the year 2000! There's an eight month supply on the market, and new home prices fell an additional 8% from July to August. And the correction in the market is not over yet!

Existing home sales are back at the 2002 pace with the supply of houses for sale up to an 18 year high!Can you even remember 18 years ago?

Some of our government-types have noticed “We are in a crisis”and have insisted that Congress do something to help us poor people who are suffering under mortgage payments that keep growing like an uncontrollable fungus. Does calling on Congress for a fix just restore your confidence in the future?
Hmmm?

By the end of 2008 interest rates on about 2.5 million ARMs (Adjustable Rate Mortgages) will be reset again to higher rates.

If you are one of these 2.5 million families facing increasing monthly debt, I have a recommendation.
The Holiday season is upon us already. Try not to be caught up in the spending frenzy that generally occurs at this time of year.

Think back to the real reasons for our Holidays. Be thankful for something – Think about it – You'll come up with something to be thankful for – Children, spouse, friends, family, life itself!
Try something free – visit friends, make music and sing together, dance, play games, have a bonfire, go to church, attend community events. Enjoy each others company without a gift involved. It can be just as much fun – maybe more! YOU WON'T NEED TO WORRY ABOUT PAYING FOR IT!

Linda Carpenter, MBA, SRA

Posted in:General
Posted by Mark Baker on November 20th, 2007 6:22 PMLeave a Comment

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October 12th, 2007 1:26 PM

Although Alan Greenspan feels the US economy is growing (slowly), a recession is not coming(probably), the bottom has been hit (maybe not here), and the stock market is getting better, in fact the overall economy is still slowing - and he's trying to sell his book.  Some areas of Florida are doing better than others. But, the Orlando area is not expected by some authorities to bottom out until the first Quarter of 2009 with a 15% decline in housing values! 

The condominium oversupply is resulting in delays and cancellations of new construction.  Florida has a reported 2% drop in foreclosure actions since August. Down is good, BUT this is a miniscule adjustment compared to the 158% increase in foreclosures from Sept 06 to Sept 07. And it may not be a trend – just a glitch!

A University of Florida survey reports continuing distress in the condo and existing housing markets, rising foreclosures, and disruption in the mortgage securities market as evidenced by the recent instability.

Even in the Panhandle area that considers itself stabilized and doing o.k., Florida's largest landowner/developer has had a 75% reduction in the workforce.

Exotic mortgages (they aren't sexy) and sub-prime loans are still seeing monthly payments shooting up precipitously. 

SO – Protect yourself, your family, and your home. Tighten up those budgets some more. It's not over, and looks like it may get worse before it gets better! Do not spend if it's not necessary! Nobody is totally out of the woods yet!


Posted in:General
Posted by Mark Baker on October 12th, 2007 1:26 PMLeave a Comment

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Check with your local lender to see if you qualify for the new FHASecure program which was recently created to provide a fixed-rate refinance for homeowners who are 1-6 months in arrears due to a rate reset. The purpose of the program is to keep good borrowers out of foreclosure. To qualify, you must have been current (less than 30 days late) on all your payments for the six months before the interest rate was increased. Also, you must have equity in your home of at least 3%. This means you won't qualify if you are "upside-down".

Think about this now because the market could get worse!

Linda Carpenter, MBA, SRA (FHA Appraiser FLRD789


Posted in:General
Posted by Mark Baker on September 26th, 2007 4:03 PMLeave a Comment

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