Mortgage Mania - Part 8 The Hits Just Keep On Coming

July 25, 2007

As I’m still reeling in shock from today’s developments in the Tour de Farce, I found this uplifting article in the NewYork Times (online edition of course): Top Lender Sees Mortgage Woes for ‘Good’ Risks

It looks like I was uncannily correct in my forecast of rough lending seas ahead for home buyers, as Countrywide Financial annouced today that they are seeing additional borrowers with good credit falling behind on adjusting mortgages. I guess default and foreclosure aren’t just for sub-prime borrowers after all.

Since Countrywide is seen as a bellwether for the mortgage industry, Wall Street reacted to their announcement by pummeling the stock dragging down the sector, and when the dust cleared, the S&P 500 was down 30.53 or 2% on the day. Additionally, the dollar fell to $1.40 to the Euro, downgrading the accomodations and shopping plans on my upcoming trip to Italy.

Did I mention that my title officer told me that she had seen the first short-sale in Palo Alto in recent memory close last week? Maybe Palo Altans should care about adjusting mortgages and the downside of exotic loans after all.

If you are thinking of buying a home, call your lender and get your pre-approval updated. Loan conditions are changing quickly out there kids, so make sure you are working with someone who is on stop of this stuff.

As for me, it’s back to the internet with a BIG glass (OK, bottle) of Brunello di Montalcino, to twist the knife in my heart over the latest doping scandals and chaos at the Tour de Farce, and the gutting of the sport that I love and the inspiration for the naming of my real estate team, The Ventoux Group.

Thanks for reading . . .

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Written by Chris Iverson, Realtor · Filed Under Real estate 

Comments

2 Responses to “Mortgage Mania - Part 8 The Hits Just Keep On Coming”

  1. Denise Beeson on July 26th, 2007 10:00 am

    Read the continuing bad news in the Press Democrat http://www.pressdemocrat.com -the local NY Times presence here.
    However, the article finally admits that the median price of homes ($606,000) is staying solid in the Northbay with even a gradual uptickof values in 2007-08. This is a great buyer’s market and I am so tired of all the negative publicity on a small part of the market that were mislead or just didn’t understand their mortgage terms. By far the buyer out there that is informed and working with a good realtor and lender should be enjoying their purchase.

  2. Diane Aurit on July 26th, 2007 11:40 am

    Do you think the press could say anything more negative about the housing market? We are being simply bombarded with the housing problems. As Denise wrote, this is a great buyers market. We survived buyers’ markets in the past. I did short sales in Pasadena in the early 1990’s and they weren’t subprime loans. Oh, and more importantly, I feel your pain. My husband has raced road bikes for over 15 years and is so disgusted with professional cycling we haven’t even watched the “Tour” although we do miss goofy Bob Roll!

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