This is a question a lot of people ask themselves or their lending advisors. The answer is No. This is fraud plain and simple. Also a lender on a new loan will require you to qualify to carry the full obligations (including mortgage payment, taxes, insurance) of both properties to qualify—you can’t claim your existing
June 2009
The S&P Case Shiller April 2009 report of existing home sales showed year-over-year -18.1% price declines averaged across 20 major metropolitan areas (see table below). Notable declines were Las Vegas -32.2%, Phoenix -35.3%, and San Francisco -28.0%. From March to April, prices in all 20 cities in the composite were down. Both the 10 and
Home Appraisal Issues I overheard the kids last night talking about doing chores. My daughter said, “If we stop dusting, we could use the coffee table for a message board!” Speaking of message boards, I have seen a few analysts state that they believe property appraisals are keeping a lid on values. More precisely, when
Three months ago, I wrote an Open Letter to Dylan Ratigan with my case as to why he should stick with financial media after his departure from CNBC. At the time I laid out two options that seemed most probable for him: So as you evaluate new options, I am sure there are many but
Madoff gets maximum 150 years in prison for his career-long money management ponzi scheme. Scattered applause and whoops broke out in the crowded Manhattan courtroom after U.S. District Judge Denny Chin issued the maximum sentence to the 71-year-old defendant, who said he lives “in a tormented state now, knowing all the pain and suffering I’ve
I tried to find some jokes about state budgets, but was unsuccessful. They are simply not a laughing matter. Perhaps even as large a problem as credit card defaults, or commercial loans, both of which may require government bail outs, by the end of this month 19 states have to approve their fiscal 2010 budgets,
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were +0.1% in May and +0.1% year-over-year through May. Excluding volatile oil and food costs from the readings, “Core” PCE price index for May was +0.1% and +1.8% YOY through May. The Fed looks closely at Core PCE excluding food and energy prices because
Still Not Much News On Tax Credits Toward Down Payments Which investor will take the home buyer credit? Taylor Bean Whitaker, which I believe does not hold the mortgage on the Neverland Ranch, has sent this note out to the clients about the first-time home buyer credit: “HUD recently released Mortgagee Letter 2009-15 regarding the
Final 1Q2009 GDP came in today at -5.5%, and combine with 4Q2008 GDP of -6.3%, these two quarters represent the largest economic contraction since 1947—since then, the economy has never contracted by more than 4% for two consecutive quarters. This is the final number for 1Q2009 GDP and no more revisions will be made. As
This week was the 25th week of a mortgage bond purchase program by the Federal Reserve—here’s week 24. Beginning on June 18 and ending on June 24, the Fed bought $22.25b net of mortgage bonds—below is a table breaking down the amounts for each coupon and maturity across the three agencies that issue mortgages: Fannie
Yesterday I had a showering discussion with my 17-yr old son. Specifically, I asked him why, as it seemed to me, he hadn’t showered since around Easter. He explained that in Biology class they had learned that every animal has a certain set of resident flora and fauna on their bodies, and bathing was actually
Below is the full text of the Fed’s FOMC decision from their two-day meeting that just ended. They kept short-term Discount and Fed Funds rates the same and said that ‘inflation will remain subdued for some time’ but this is a slight change from the April statement that said ‘sees some risk that inflation could
All eyes were on the radiant bride as her father escorted her down the aisle. They reached the altar and the waiting groom. The bride kissed her father and placed something in his hand. The guests in the front pews responded with ripples of laughter and even the priest smiled broadly. As her father gave
Smith climbs to the top of Mt. Sinai to get close enough to talk to God. Looking up, he asks the Lord, “God, what does a million years mean to you?” The Lord replies, “A minute.” Smith asks, “And what does a million dollars mean to you?” The Lord replies, “A penny.” Smith asks, “Can
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