What's going into escrow - Irvine and maybe some Tustin too

NEW -> Contingent Buyer Assistance Program
Maybe it is just me, but when I read lendingmaestro's and masterofdamoney's posts -- posts from people who work in the trenches of financing, see the real data, and know the details of credit availability -- it provides a data point that is hard to ignore. We all have our points of view on the market. I see the raw land market and the behavior of builders in great detail, and obviously, I watch the resale market in Irvine, but I don't have the detailed, intimate knowledge of the front-line workings of the residential property financing market that they do. I always pay careful attention to what they write.
 
stepping_up said:
What about FHA loans under $729K?
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729K is the max loan amount offered.

The ratios will not change (DTI wise) as you go down in loan amount. The less you borrower, the lower the income to qualify.

FHA has much stricter income requirements than traditional Fannie Mae, Freddie Mac, or portfolio bank loans. The difference is that they will occassionally make exceptions in 1 area if you have an overwhelming abundance of 'good stuff' in the other categories. For example, if you have a million bucks in the bank and an 800 fico, they may let you get away with slightly higher DTI. All of this is case by case, of course, done by a manual underwrite from an FHA underwriter.

The base product offerings are done through an automated, computerized system, and you need to meet each guideline to get an approval.
 
And yet another $1M+ listing has gone under contract. This one in Oak Creek, at a whoppin' 28 days on the market, is listed at a 2006 price.

Guess the few families in the six-figure income club have come out in force to buy this month...
 
ipoplaya said:
And yet another $1M+ listing has gone under contract. This one in Oak Creek, at a whoppin' 28 days on the market, is listed at a 2006 price.

Guess the few families in the six-figure income club have come out in force to buy this month...
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Heh. My wife-to-be was arguing with me last night and actually said, to me, out loud, "Irvine home prices haven't dropped at all in the last year."

I think that sums up the buying public in Irvine right now. :)
 
I put an offer on 3 Rains, Irvine, CA 92602 property (an approved short sell) two months ago. My agent told me the seller submitted my offer with other five to the bank. A few days later my agent said a higher offer went into escrow. However, I never found any information about that sell in Ipoplaya's site. Anybody knows what happened to that one? Thanks.
 
Masterofdamoney said:
Oh, and FNMA just released their new guidelines yesterday, which are effective June 1st, 2008. The new guidelines clip out about 1/3 or the people who can currenlty qualify for a loan. They are much stricter - lower LTV's and CLTV's, they have imposed steep credit score requirements, etc.... that should make it even more fun for Joe and Jane consumer!
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I am not trying to high jack this thread, but FNMA said they are dropping the regional declining market LTV reduction.

Starting June 1, Fannie Mae said it will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its automated underwriting system, and 95 percent loan-to-value ratios for loans manually underwritten, in all geographic locations in the United States. The LTV requirements will apply only to single-family, primary residences; other properties will face different underwriting restrictions.

So, my question, because I am too lazy to search FNMA right now, is what other guidelines did they change to compensate for this increased risk? I mean, I know they will change the LTV, but even they are not stupid enough to not change something else in the guidelines to make it just as difficult to qualify for as before.
 
fromluotian said:
I put an offer on 3 Rains, Irvine, CA 92602 property (an approved short sell) two months ago. My agent told me the seller submitted my offer with other five to the bank. A few days later my agent said a higher offer went into escrow. However, I never found any information about that sell in Ipoplaya's site. Anybody knows what happened to that one? Thanks.
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This is still listed as "Pending" with the agent from outside the area. I called and she said that they are not approved yet with the bank, and that they have 3 offers in (not 5) with the top being $800K. If that is still something you would consider, resubmit with your agent.

P.S. It's not listed in the local MLS (SocalMLS), only in the MRMLS (Inland Empire). That limits exposure dramatically.

P.P.S. There's $1.04M in loans against it, 100% financing in '06.
 
Speaking of cash buyers, a few showed up at the auction yesterday. 19 Willowridge had a NTS of $783k, but a minimum bid of $580k. It was bid up to $721k, which is just slightly above the 2003 purchase price of $700k. According to Zillow, it was for sale for $890k, so I don't know how much someone thinks they can flip this for, but the profit won't be big enough for the amount of time.

Someone also picked up 74 Liberty, 92782 for $399k. Zillow can't find it, but google maps street view shows the even numbered addresses, like 80 Liberty, as a detached product, and not the attached product by Laing. Does anyone know for sure what product this is? If it is that Laing attached product it isn't such a great deal, if it is detached and across the street, then they got a smoking deal.

26 Grape Arbor, 92620 went back to the bank for $995k.
 
graphrix said:
Masterofdamoney said:
Oh, and FNMA just released their new guidelines yesterday, which are effective June 1st, 2008. The new guidelines clip out about 1/3 or the people who can currenlty qualify for a loan. They are much stricter - lower LTV's and CLTV's, they have imposed steep credit score requirements, etc.... that should make it even more fun for Joe and Jane consumer!
Click to expand...

I am not trying to high jack this thread, but FNMA said they are dropping the regional declining market LTV reduction.

Starting June 1, Fannie Mae said it will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its automated underwriting system, and 95 percent loan-to-value ratios for loans manually underwritten, in all geographic locations in the United States. The LTV requirements will apply only to single-family, primary residences; other properties will face different underwriting restrictions.

So, my question, because I am too lazy to search FNMA right now, is what other guidelines did they change to compensate for this increased risk? I mean, I know they will change the LTV, but even they are not stupid enough to not change something else in the guidelines to make it just as difficult to qualify for as before.
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Effective June 1st, 2008 all new FNMA submitted loans must adhere to brand new FNMA guidelines. The new guidelines are far sweeping, across all product lines.

They are implementing STEEP credit score minimums on conforming loans. They have reduced the LTV and CLTV's allowed ON ALL LOAN PRODUCTS, across the board. They implemented a new DU version that everything will have to run through that incorporates these guidelines.

I have read the new guidelines about 5 times now, my estimation is that it effectively removes 1/4-1/3rd of the current pool of 'qualified' people from that category... just what we need. :)
 
graphrix said:
Speaking of cash buyers, a few showed up at the auction yesterday. 19 Willowridge had a NTS of $783k, but a minimum bid of $580k. It was bid up to $721k, which is just slightly above the 2003 purchase price of $700k. According to Zillow, it was for sale for $890k, so I don't know how much someone thinks they can flip this for, but the profit won't be big enough for the amount of time.

Someone also picked up 74 Liberty, 92782 for $399k. Zillow can't find it, but google maps street view shows the even numbered addresses, like 80 Liberty, as a detached product, and not the attached product by Laing. Does anyone know for sure what product this is? If it is that Laing attached product it isn't such a great deal, if it is detached and across the street, then they got a smoking deal.

26 Grape Arbor, 92620 went back to the bank for $995k.
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Weird, 19 Willowridge is listed in MLS as pending sale... How could it be pending sale if it just got auctioned off?

To clarify graph, this one sold at auction for $721K? I'd say that would be easy $75-100K flip unless its super trashed inside. That place shouldn't have a problem selling for $800K in this market.
 
Master, Maestro, et all. If I were to acquire a property at auction, could I then turn right around and slap a mortgage on it?

I might be able to scrounge up a half mil that I'd have to pay back super fast...
 
ipoplaya said:
Master, Maestro, et all. If I were to acquire a property at auction, could I then turn right around and slap a mortgage on it?

I might be able to scrounge up a half mil that I'd have to pay back super fast...
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Yes, you could... be careful how much you buy it for, tho. :)
 
Masterofdamoney said:
They are implementing STEEP credit score minimums on conforming loans. They have reduced the LTV and CLTV's allowed ON ALL LOAN PRODUCTS, across the board. They implemented a new DU version that everything will have to run through that incorporates these guidelines.

I have read the new guidelines about 5 times now, my estimation is that it effectively removes 1/4-1/3rd of the current pool of 'qualified' people from that category... just what we need. :)
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I have read this thread a dozen times, and I'm either not understanding OR I'm in disbelief.

Are you saying that they've TIGHTENED and removed an additional 1/3 or so of the pool?
 
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