HO-6 Insurance Requirements for Condominium and PUD Properties 

HO-6-CONDOMINIUM UNIT OWNERS COVERAGE

 

Here is an excerpt from a memo sent to us by one of our biggest lenders: 

Borrowers must show evidence of hazard insurance coverage for all condominium projects with attached units, including two- to four- unit projects, that covers fixtures, equipment, and other personal property inside individual units if they will be financed by the mortgage.  Borrowers must show evidence of a “walls-in” coverage policy (commonly known as HO-6 policy) unless they can document that the master policy provides the same interior unit coverage. The master policy must include replacement of improvements and betterment coverage to cover any improvements that the…

2218 Views, 0 Comments

Read Full Post

Here is an interesting application of the job loss protection gurauntees the auto industry introduced being applied to the Real Estate Market

http://www.mortgagenewsdaily.com/channels/video/79154.aspx

 

 

alligator_rainy_day_450  

 

 

Here is the website for the program the Real Estate Company is using as the insurance backstop for making this claim

http://www.helpprogram.org/index.htm

 

C.A.R. launches Mortgage Protection Program (Thursday, April 2, 2009)

2002 Views, 0 Comments

Read Full Post

According to this Realtytrac report for first Quarter 2009, California was #3 in the country in terms of highest percentages of foreclosure filings at ~1.72%, Arizona just beat us out ~ 1.85% and Nevada was the undisputed champ at ~ 3.7%. Realtytrac defines a foreclosure filing as an NOD, NTS or a bank repossession.

The national average is ~.63% of all U.S. Properties (had some sort of foreclosure filing during that same time period.)

Defaults in California are up by record numbers according to this Dataquick article.  Up 80% from prior quarter (Q4 2008) and 19% from prior year quarter (Q1 2008). 

~70% of loans originated by ResMae 8/06=>11/06 have defaulted, Masters Financial and Ownit were both North of 60% too during that time period, WOW!!...

…

2139 Views, 0 Comments

Read Full Post

I am adamant in my opinion that Obama’s mortgage plan will be a bust.   It seems difficult for people to understand that:

  1. borrowers need to be in homes they can afford, regardless of the level of rates;
  2. home prices should (and will) fall to levels consistent with area incomes;
  3. re-default rates will continue to rise for a host of reasons;
  4. seems like the only mod plan that is working is the one where banks actually cut principal by a significant amount; and
  5. it is horrific public policy to give people that have loan modifications a credit after 5 years if they have paid their mortgage on time over that period, but provide other folks like renters and homeowners who have paid their mortgage on the up and up no relief. 

In related news, don't…

2037 Views, 1 Comments

Read Full Post

$8,000 2009 Home Buyer Tax Credit Details

click here if you are looking for info on the 2009-2010 tax credit extension that passed in November 2009?

The recently approved American Recovery and Reinvestment Act of 2009, combined with favorable resale prices and interest rates, offers home buying bargain hunters a once in a lifetime purchasing opportunity.  The measure has features designed to stimulate the economy and spur home sales with the hope that this will trigger a ripple effect throughout the overall economy. Features include:

 

  • An $8,000 tax credit - up from $7,500 - available to first-time home buyers for purchase of principal residence after January 1 and before December 1 2009.
  • The credit applies only to homes purchased during 2009.
  • The…

3406 Views, 0 Comments

Read Full Post

Interesting article comparing Japanese economic recovery after real estate bubble in the 1990s that lead to severe recession and long period of deflation and decling asset values to current US economic crisis.  Lots of interesting parallels.  Hopefully we can learn from history and avoid some of the mistakes the Japanese government made...

 http://www.cnbc.com/id/29179715

2560 Views, 0 Comments

Read Full Post