Posted by MW/VA on 4/27/09 7:58am
Msg #286423

Refi Boom

According to an article in the Wall Street Journal (c/o Source of Title) they are comparing the current Refi Boom to the Real Estate Boom. They have stated that apps are triple what they were a year ago. WoooHooo! (Sorry, I didn't know how to attach the link).

Reply by Julie/MI on 4/27/09 8:08am
Msg #286424

Applications may be up, but in Michigan, many will not qualify even under the messiah's plan. The property values are just too low and many are upside down, but that was due to so many pulling equity out.

Reply by MW/VA on 4/27/09 8:13am
Msg #286425

I agree that many are in the position. I think that's why there are so many streamline FHA's--no qualification issues.

Reply by Teddog/CO on 4/27/09 8:55am
Msg #286427

It's a vicious circle with more and more people no longer being able to qualify. As it has been said before property values dropping like a rock. There are other variables in the equation. If one or both of the homeowners bringing home the paycheck are laid off or their hours are cut in half. People have been using credit cards to pay their bills. Late payments or missed payments. Lowering their credit scores by the minute. By the time they realize the are in Big trouble they try searching for a refi just lowering the credit score to the point of no return.

JMO I believe that there will be another wave of foreclosures coming soon. The results of people that have been hanging on using their credit cards and personal loans for the last year. While they try to find another job.

Because lenders don't have the staff they need to process much needed refi's and modifications it is taking months for homeowners to get any form of help. There are many horror stories of people trying to contact their lenders to refi or do modifications to save their homes. Just to be lead on a crazy, wild goose chase leading only to a dead-end and no responce from their lenders.

I have talked with BWR's that had to hire an personal attorney to get some of these lenders to respond to their request for help. Even their attorney were lead a merry chase of endless, everyday, all day phone calls and threating letters. Threating to turn them in to the FTC, Regulators and State. Still it took them months to get any results.

What a Mess!!

Reply by janCA on 4/27/09 9:16am
Msg #286431

I hear that in CA alone, there is going to be a new release of 400,000 foreclosures.

Reply by Teddog/CO on 4/27/09 9:21am
Msg #286432

jan CA

Just my point Jan. What good are these "New Tools" to help people if they are not being used. Moreover use them before it's to late to help someone. JMO

Reply by Lee/AR on 4/27/09 9:39am
Msg #286435

No good, but it's a nice speech/sound bite. n/m

Reply by sue_pa on 4/27/09 9:49am
Msg #286437

I was to do a purchase later this month - it's been cancelled because the buyers have lost their jobs. they both are working temp jobs apparently bringing in sufficient income to pay the monthly mortgage and they have considerable assets but the underwriter won't accept the temp work

Reply by MistarellaFL on 4/27/09 11:03am
Msg #286441

Refi Boom: Not here in SW FL

I'll bet I've only seen 5 refis all year here.
It's all about 2nd home and investment property purchases here in SW FL.
And due to meeting all the criteria, I'd say about half get CXL'd or R/S'd.
So far this morning, I have had 3 cancellations already, hopefully to be
R/S'd.
Oy vey!

Reply by JanetK_CA on 4/27/09 3:31pm
Msg #286482

Re: Refi Boom - NOT!!!

Sadly, that seems to be all too common. I don't believe for a second that we will see anything close to what we saw a few years back in terms of volume of refinances -- mainly due to currently very strict underwriting standards vs. almost non-existent ones before. And like someone alluded to, the 5% over value that is allowed doesn't come close to the amounts that many people are underwater, at least in my part of the country.

Most of the refis that I am seeing are people who are doing well with high credit scores and are just taking advantage of the low interest rates. The ones who desperately need to refinance are having a very difficult time qualifying. The LOs are swamped, but not much is coming through the other end of the pipeline.