bubbleinfo.com

Most would prefer a smaller house with a more traditional floor plan, but for La Jolla this is a lot of square footage for the money:

A reader sent this in:

An article in today’s Wall Street Journal sounds like the HARP program should be named CRAP, because Fannie/Freddie are holding the line by not allowing HARP refi’s on loans over 6% to appease their bond holders, and the Bond rates increased yesterday on this news.

All while our guviment is out there saying they are trying to ‘help’ homeowners that are stuck with high loan rates and high LTV’s that do not allow them to refi, as long as they are current.  Other recent news showed Fannie/Freddie Execs are getting massive payouts, while homeowners bend over and take it. 

I am in this group over 6% trying a ‘streamlined’ Wells refi but Fannie will not approve it under HARP and I am being forced to paydown approximately $22,000 to keep the new 1st plus 2nd HELOC that is being subordinated under a combined 95% LTV.

Here’s an excerpt of the WSJ article:

NEW YORK—Mortgage-backed securities issued by Fannie Mae and Freddie Mac jumped Wednesday, as investors grew more confident that new incentives to boost refinancing for borrowers stuck with high-interest-rate loans would have a limited impact.

Fannie Mae 6% mortgage-backed securities—backed by 6.5% home loans—rose 8/32 to 109 14/32, outpacing gains in Treasurys by about 7/32 after accounting for the change in interest rates, according to Credit Suisse’s Locus analytics. Prices fell late in the day, after Fitch Ratings warned about the European debt exposures of large U.S. banks, which are some of the biggest buyers of mortgage-back securities.

“There was a big fear that you’d see a big rise in prepayments, and, based on what [Fannie Mae and Freddie Mac] said, that has receded,” said Todd Abraham, co-head of the government- and mortgage-bond group at Federated Investors in Pittsburgh. “It doesn’t look like they’ve done anything big here.”

The changes to HARP came after more than a year of speculation that the administration would enact major overhauls of mortgage programs to help lift home buying out of its five-year slump. The talk persisted even as banking groups and some investors warned that rewriting rules could discourage buyers of the securities and result in higher interest rates.

From Reuters:

Republicans and Democrats in the U.S. Congress have agreed on a measure that would increase the maximum size of mortgage loans that can be insured by the Federal Housing Administration, a key funding source for U.S. home loans.

The measure to raise the loan limits backed by the FHA still has to pass the Republican-led house and Democrat-controlled Senate before it becomes law, but the agreement by a bipartisan panel of lawmakers from both chambers indicates a strong likelihood of final approval.

The agreement reached among House and Senate leaders excludes those loans guaranteed by Fannie and Freddie, which provide about half of the funding of all U.S. residential home loans. The deal would only impact FHA’s loan limits, restoring the cap for mortgages the government insures to as high as $729,750 in high-cost real estate markets through 2013.

The agreement follows a polarizing debate over the size of mortgages the federal government should back. The measure to increase the legal limits on the size of mortgages the FHA can insure was included in a bill to fund a large swath of government programs, from food inspection to law enforcement, that is seen as must-pass legislation for many lawmakers.

The legislation containing the amendment extends funding on a temporary basis for many government programs through Dec. 16, giving Congress additional time to finalize funding levels.  The House and the Senate must pass the bill by Nov. 18, when current funding expires.

Budget battles have raised the possibility of a government shutdown twice so far this year, as Republicans have pushed for steep spending cuts. Aides say they do not anticipate that this bill will lead to another round of budget brinkmanship.

The divisive debate on the loan limits will continue to play out this week as lawmakers push to pass the short-term funding measures. The Senate had pushed a measure that would raise the maximum size of a home loan backed by Fannie Mae, Freddie Mac and the FHA to $729,750.

The House did not include the higher limits in its bill to fund federal agencies through next September, instead favoring to keep the cap at $625,500.

Towards the end of this youtube tour, I mention the price ranges around the North SD County Coastal region, and note that there probably won’t be much change in 2012.

Reasons:

1. The inventory is so thin that there aren’t enough comps in either direction to change the trend, up or down.  There might be a flurry here and there, but overall there won’t be conclusive evidence.

2. The banks/servicers might increase the foreclosure production, but not enough to impact the market in a big way.  I wish they would flood the market with quality bank-owned properties at attractive prices, and create some real market clearing. 

It would ignite the market, and buyers would rush in to get a bank deal while financing is cheap.  We know what happens when buyers rush in – it creates frenzy-like conditions, and the appearance of pricing going up.  I hope it happens because the market needs it, but it would be a nightmare for me – all my buyers want deals!

3. Sellers with equity will still think it’s a bad time to sell, keeping inventories low – especially of quality homes.

4. Any catastrophic events – Europe implosion, double-dip recession/unemployment, earthquake, Chargers winning the Super Bowl, etc. would cause the market to freeze up until the Fed can print enough money to solve it. 

5. Next year, politics and the election will be more distracting, which causes indecision/inaction.

You always get higher density closer to the beach…..but this is tight!

Every for-sale-by-owner hopes that a magical buyer will come along who appreciates the uniqueness of their special home – and be ready, willing, and able to pay for it.  Not sure why the U-T considers this news, and not advertising:

The family of the late Nobel Prize winner Francis Crick is offering a $10,000 finder’s fee to the person who helps them locate the ideal buyer for the scientist’s home near the Muirlands West section of La Jolla.

The four-bedroom, four-bath house at 1792 Colgate Circle has been put on the market for $1.95 million. Crick lived in the ranch-style house from 1978 until his death in 2004.

“We would like to sell the house to someone who appreciates its historic value so we are trying a dual approach,” Crick’s son, Michael Crick, said by email. “First we are offering a $10,000 finder’s fee (through Feb. 28) aimed at people, such as Rosalia (Mariz, a long-time family friend), who knew my parents and also knew scientists all over the world.

“If we don’t get a good offer in that time, we will try the conventional approach through local Realtor Greg Noonan — who will focus on the local market.”

Francis Crick achieved worldwide fame in 1962 when he shared the Nobel Prize in physiology or medicine with James Watkins and Maurice Wilkins. Watson and Crick discovered the fundamental structure of DNA, a discovery that would revolutionize genetics and molecular biology, eventually leading to the Human Genome Project and widespread advances in pharmacology.

Crick’s most groundbreaking work occurred at Cambridge University. But he later transferred to the Salk Institute of Biological Studies, where he played a key role in the growth of the La Jolla research center. He died of colon cancer in La Jolla in July 2004.  http://francis.crick.com/lajolla.html

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From Dataquick – they show that San Diego sales were higher last month, Y-O-Y:

You can buy older homes in Carmel Valley at lower price points, if you don’t mind the updating:

DOB sent in this latest bank-speak which was seen in a few media outlets, like the SFBT:

CEO Brian Moynihan said Tuesday that the pace of selling its foreclosed home inventory is picking up as “tons” of investor cash comes into the market.

“Where you’ve had the ability to get a hold of properties … get them cleaned up, back on the market, they have moved,” Moynihan said at a conference put on by the bank in New York. “It moves as fast now as it’s ever moved.”

“You’ve seen this thing improve slowly but surely,” he said. “There’s tons of investor money coming in” to the housing market.

BofA’s top brass has been eager to resolve its bad loans by speeding up the foreclosure process, which varies by state. USA Today reported last week that at the current pace of foreclosures moving through the system, it could take decades for the market to clear all that property in some states like New York.

In August, Bank of America picked up the pace of issuing default notices, the first step in the foreclosure process, according to ForeclosureRadar.com, a research firm in Discovery Bay.  Moynihan said today that home prices are “bouncing along a bottom.”

And on a positive note, Moynihan says the bank’s mortgage delinquencies continue to decline.

DOB sent in this contender for coolest bathtub ever – and with the glass bottom it looks like you’d be seeing fish, crocodiles, and sharks right beneath you!

Plus a few others:

We thought the August blip of increased NOD filings might be a one-time event, but it looks like the servicers are keeping up the pace.  Hopefully it’ll translate into more trustee sales:

Unfortunately, we know that a surge of NODs and about $4 will get you a cup of coffee, but at least the cancellations are moderating – though they are the dominant number: