30 Year Fixed Rate Loan at a Cost of One Point: 4.25%*
Rates just keep getting better as investors get more and more nervous about the economy. We are going to stop expressing our amazement (at least for a while) by the fact that our money supply was increased by such a huge percentage and yet rates remain lower than ever, and inflation remains tame.
In case you haven't heard, the House voted to extend the June 30th deadline for the first time home-buyer tax credit. The new deadline will be September 30th, if the Senate and Mr. Obama also sign off on the extension.
We have a client who bought 18 rental houses during the "boom", as well as a mansion in Ruby Hills (Pleasanton) that is now worth "$1 million when negotiating loan modifications" and "$5 million when entertaining friends" (his joke). This former client has since become an expert at loan modifications and has started a loan mod consulting business.
He strongly advocates a "Deed in Lieu of Foreclosure" instead of a "Foreclosure" for two reasons: (1) it is far better for your credit; if you keep your credit clean up to the point of the "deed in lieu", it avoids the long, drawn out thrashing of your credit that a foreclosure involves; and (2) it avoids the tax liability associated with "debt forgiveness".
To get a bank to bite off on the Deed in Lieu, a homeowner must first list the property for the value of the loans for at least 90 days.
Jay Voorhees and Heejin Kim at (925) 855-4491
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