St. Louis Mortgage Refinancing, Home Loans and Customer Financing News: 9% Unemployment Still Hitting Economy Hard

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The government reported 80,000 total jobs were added in October. There were 104,000 private sector positions added in professional and business services, leisure and hospitality, health care and mining, and 24,000 government jobs were lost. The unemployment rate fell slightly to 9 percent from 9.1 percent in September.

“We have to remind ourselves that things are so bad that this looks good. In the context of what we’re living through, it’s not a bad report,” said Dan Greenhaus, global market strategist at BTIG. There were a few positives in the report, including upward revisions to September and August payroll employment. August non-farm payrolls nearly doubled, from 57,000 to 104,000 and September was revised up to 158,000 from 103,000.

“Rescued by revisions,” writes Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi. “It feels like there’s more small business formation that’s going on that’s not getting reported right away. This is the second month in a row where we had substantial revisions,” said Moody’s Economy.com chief economist Mark Zandi.

The average work week for private sector workers was unchanged at 34.3 hours, but the manufacturing work week rose by 0.2 hours to 40.5 hours, and production and non supervisory employees’ work week rose by 0.1 hour to 33.7. Average hourly earnings for all private sector employees rose by 0.2 percent. “That’s fodder for spending,” said Zandi.

Zandi said, however, the positives have to be taken in the context of lowered expectations. He said the report shows the recovery has overcome obstacles and is showing resilience.

“This is still too early whether to assess whether the coast is clear. Europe is still raging,” Zandi said. The highest monthly employment gain in the recovery so far was February, 2011 when 235,000 jobs were added, but job growth has been stubbornly slow and slowed to a trickle in the summer. Over the past 12 months, payroll employment has increased by an average of 125,000 per month. This week, the Fed revised its economic forecast to include a high unemployment rate of through 2014, adding to speculation the Fed will do more easing in an effort to boost employment. Even in 2012, the Fed does not expect the unemployment rate to fall below 8.5 percent. “We’ve been at 9 percent since 2009. This is a major problem,” said Greenhaus.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St. Louis Mortgage Lending and Customer Financing News: HAMP Loan Modifications Spike

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Mortgage servicers started 40,151 permanent modifications through the government’s program in September, the highest monthly amount since May 2010. The Home Affordable Modification Program (HAMP) launched in March 2009.

Participating servicers have extended 1.7 million trials and started roughly 856,000 permanent workouts as of September, up from the 816,000 cumulative total the month before. But many different problems haunt the program.

When it first launched, servicers rushed borrowers into three-month trials before collecting all of the necessary paperwork. A backlog soon formed. By November 2009, just 31,000 borrowers made it out of the more than 759,000 trials started.

The Treasury Department shifted guidelines, requiring servicers to gather all documents before starting a trial and put in place second-look reviews to make sure all decisions during the trial were being made correctly. The backlog began to shrink.

In September, the servicers reported 19,800 trials have been active for six months or more without a decision, down from 190,400 in May 2010.

Servicers will not meet the original 3 million to 4 million borrowers originally targeted with the program. After redefaults are taken into account, the servicers may end up keeping just over 800,000 borrowers out of foreclosure, according to estimates from the Special Inspector General of the Troubled Asset Relief Program.

SIGTARP continued to press the Treasury to enforce stricter guidelines on the now $29 billion program down from the original $75 billion and said in an October report to Congress that it wasn’t too late to adopt the changes.

The Treasury has kept payments from Bank of America, JPMorgan Chase and Wells Fargo due to their poor performance in the program. It has since returned the money to Wells because of improvements made. A similar offer is extended to BofA and Chase.

HAMP modifications are still outperforming private programs. Roughly 20 percent of the 125,700 HAMP mods completed in the first quarter of 2010 were 60 or more days delinquent within one year.

But more than 34 percent of the 129,000 private workouts completed in the same quarter went two months without a payment in one year, according to recent data from the Office of the Comptroller of the Currency.

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Articles and Sponsors

Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St. Louis Mortgage Broker and In-House Financing News: Federal Reserve Says Housing Is Key To Recovery

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A fresh emphasis on healing the housing sector by officials at the Federal Reserve, in the Obama administration and in state capitals reflects the view that a healthier real estate market would go a long way in strengthening the economy. Fed Chairman Ben Bernanke said that the U.S. central bank was considering buying more mortgage debt to jolt the broader economy onto a more robust growth path.

“The housing sector is a very important sector,” he said at a news conference after a two-day policy meeting. “Problems in that sector are a big reason why our economy’s not recovering more quickly.”

Economists say the Fed could do well to target the housing sector. For one, it is at the center of the economy’s ills; for another, homebuying can be a catalyst for a wide range of consumer purchases from refrigerators to lawn furniture. While many other sectors of the economy have found their feet, housing continues to lag abysmally, held back by high rates of foreclosure and homes that have dropped dramatically in value.

Around 7.5 million U.S. households are either in foreclosure or delinquent on their mortgage, and 11 million homeowners owe more than their homes are worth. The Obama administration and a leading housing regulator announced plans last week to widen a program aimed at helping so-called underwater borrowers refinance their mortgages.

At the same time, state attorneys general are pressing for a settlement with top banks over alleged foreclosure abuses that could require the lenders to commit about $15 billion to reduce principal for struggling homeowners and modify loans.

“Clearly, the housing sector is an obvious candidate for policy intervention,” Goldman Sachs economist Andrew Tilton wrote in a recent note to clients. Fed Governor Daniel Tarullo caught some in financial markets off guard by recommending in a speech on October 20th that the central bank expand its purchases of mortgage-backed securities, reopening a debate many had thought closed. His ideas drew quick support from two of the most influential Fed officials Vice Chair Janet Yellen and New York Fed President William Dudley and has resonated with others.

But why housing, and why now? At just more than 2 percent of U.S. gross domestic product down from 6 percent during the housing boom residential investment isn’t that big a component of the $15 trillion U.S. economy. However, Tilton and others believe housing “punches above its weight” and generates enough momentum to be critical to strong growth.

“Housing might be special,” Tilton concluded. Housing has led the economy out of past recessions. It creates jobs and is a catalyst for spending on goods and services. The sector is usually a key avenue for the transmission of monetary policy but the drop in home values has locked many Americans out of refinancing, while leading others to fear taking the plunge by buying a home.

Coaxing mortgage rates a bit lower could lead potential borrowers into the market. MBS purchases could directly lower housing borrowing costs. “Their actions are more effective when they target markets that have wider spreads,” said Joseph Gagnon, a former Fed economist now at the Peterson Institute.

In September, the Fed resumed buying MBS to replace housing debt that was rolling off its balance sheet. Adding to this supply would be “a viable option” if circumstances were right, Bernanke said, although he declined to specify what might spur the Fed into action.

Another reason to spotlight housing may be timing. After blaming Japan’s natural disasters, Europe’s sovereign debt woes, and a spike in oil prices for the slow U.S. recovery, officials at the U.S. central bank have come round to the view that there is a more fundamental problem with the economy.

“I’d interpret the focus on housing as a result of the wake up call they got this summer,” JPMorgan economist Michael Feroli said. “Each time we’ve been disappointed so far in this expansion they have been saying ‘temporary factors.’ This summer they finally realized that wasn’t credible and took a fresh look at the recovery.”

Even so, any renewed expansion of Fed holdings with new MBS will face opposition within the central bank. Some top officials argued that the Fed’s previous $1.25 trillion in MBS purchases blurred the line between monetary and fiscal policy by targeting a specific sector. Those complaints resonated more broadly, as well, and the Fed eventually decided its ultimate goal would be to return to an all-Treasury portfolio.

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Articles and Sponsors

Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St. Louis Mortgage Refinancing and Customer Financing News: Top Short Sale Areas Throughout the United States

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Based on an analysis of RealtyTrac data, including average sales price, average discount, percent of all sales and the average days to sell a short sale, Foreclosure News Report compiled the following list of the Top metropolitan statistical areas (MSAs) for buying a short sale.

1. LOS ANGELES, CA: This city, famed for Hollywood, is the epicenter of short sales activity in the U.S.

2. PHOENIX, AZ: This desert city, a favorite of retirees who love golf and warm weather, is another short sale mecca. With property values down by as much as 70 percent in the Phoenix-Mesa-Scottsdale metro area, some borrowers who bought at the height of the real estate boom are finding themselves underwater and are being forced to sell via short sale.

3. CAPE CORAL-FORT MYERS, FL: Cape Coral clocked in with 1,358 short sales in the second quarter of 2011, with an average price of $111,029. Buyers in Cape Coral paid 33 percent less for pre-foreclosure (short) sales than the average price for properties not in foreclosure.

4. OXNARD-THOUSAND OAKS-VENTURA, CA: The Oxnard-Thousand Oaks-Ventura, Calif. metro had 681 short sales in the second
quarter of 2011. Prices were slashed 24 percent on short sales, with the average price at $352,994 according to RealtyTrac. Short sales accounted for 26 percent of all real estate transactions.

5. RENO-SPARKS, NV: About 60 percent of homeowners in Reno owe more on their house than the house is worth, making the short sale  market in Reno huge. Prices have fallen so sharply in the Reno-Sparks metro area that distressed sales – pre-foreclosure short sales and bank owned REOs – dominated the Reno real estate landscape in July, representing 57 percent of all sales.

6. SAN FRANCISCO, CA: Short sales in the San Francisco metro area rose 47 percent from the first quarter to the second quarter to a total of 3,237 sales. Buyers snagged an average discount of 41 percent on preforeclosures, although the average price for a short sale was still a lofty $364,766.

7. PORTLAND, OR: Portland, a metropolitan area of some 2.2 million people, is a spring board to the drizzly Pacific Northwest. The area reported a total of 756 pre-foreclosure (short) sales in the second quarter, up 39 percent from the previous quarter and accounting for 11 percent of all sales.

8. ATLANTA, GA: Atlanta was another metro at the top of the short sale list for the second quarter, with a 21 percent bump in pre-foreclosure sales from the prior quarter. In the Atlanta metro area 2,595 short sales were sold to third party buyers in in the second quarter, accounting for 14 percent of all sales.

9. MILWAUKEE, WI: Rounding out the Top 10 was the Milwaukee-Waukesha-West Allis metro area, where 324 short sales took place between April and the end of June 2011 – up 20 percent from the previous quarter. The average price for a short sale was $107,980, 41 percent below the average price of a property not in foreclosure.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St. Louis Home Loan and Customer Financing News: Olick Reports Be Careful with Rentals

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I thought I would share a response to yesterday’s blog post onthe Obama Administration considering selling Fannie and Freddie’s foreclosed properties in bulk to private investors.  Rick Shargaused to work, and speak, for RealtyTrac, a well-known foreclosure sale site and tracker. He recently jumped ship to join Carrington Mortgage Holdings, which does everything from asset management to residential mortgage origination, servicing and propertymanagement.  Here’s Sharga’s take:

‘Your post today made its way through our offices pretty quickly,as we’ve been doing REO rentals for several thousand properties in our own portfolio for several years, and as part of FannieMae’s Tenant-in-Place program. We’d probably be one of the companies you mentioned who would be interested in buying some ofthe GSE REO assets and turning them into rental units for some period of time. But it’s not an investment to enter into lightly.

(Note: REO’s: Real estate-owned properties are those acquired by a lender, whether a bank or the government, after an unsuccessful auction attempt.)

This isn’t the slam dunk success story for investors that some of your sources suggested today. Rental margins can be extremely thin, the probability of success varies wildly from market to market, and an investor who doesn’t understand how the financials work could be in for a rather rude awakening. Managing a large portfolio of properties across the country isn’t exactly a walk in the park either, and there aren’t a lot of companies with the infrastructure to support that sort of initiative right now.

We do think that the idea makes a lot of sense from an overall housing market perspective. Done properly, it will remove a large number of distressed properties from sales inventory (and from the dreaded shadow inventory) which should help to stabilize home prices – and, in some markets, help stabilize rapidly-rising rental rates by adding rental inventory. It would take large sums of capital that are currently on the sidelines, and put them to use, which would be a boon for the economy. It would allow the GSEs to cap their losses on these REOs, and protect the values of their portfolios of performing loans.

To your point, it would clear up much of the uncertainty in the housing market today by removing the overhang of distressed properties. And the timing is right, as there appears to be a growing demand for rental housing, while many potential buyers repair their credit, try to save money for a down payment, or just decide to wait out the market before they buy.  It’s not a panacea, but could be one of the best ideas to come along since the foreclosure tsunami hit. We’re just not sure how big a wave of investors we’re likely to see once people actually do the math.’

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St Louis Mortgage Broker and Consumer Lending News: Olick Reports On the Distressed Property Sales Drop
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“The share of distressed sales in May, that is foreclosed properties and short sales (when the property is sold for less than the value of the loan), fell to 31 percent of all sales from 37 percent in April. Investors, who purchase a large share of these distressed properties, also represented a smaller share in May. So what’s going on?

We know there is still a huge supply of bank owned (REO) properties, and we also know that banks are pushing short sales on many more properties than ever before. But they are also pushing REO sales, thanks to new sales incentives from lenders and the GSE’s (Government-Sponsored Enterprises).

‘Realtors and mortgage loan officers nationwide are driving mid-to-high end organic, short and distressed sales on the fear that buyers will be unable to qualify for loans once the QRM (Qualified Residential Mortgage) rules are in place requiring 20 percent down,’ says mortgage market analyst Mark Hanson, describing new rules being considered for risk retention by banks (part of the banking overhaul legislation passed last summer).

Some bloggers though, writing in to me after the existing home sales report, claimed that Fannie and Freddie are holding on to REOs, trying to game home prices. Fannie strongly disputes that.

‘Fannie Mae doesn’t have a shadow inventory of REO properties that are available to be sold. As soon as we acquire a property, we quickly identify a market competitive price, determine whether to make any necessary repairs and list the property. In the first three months of 2011, we sold a record number of REO properties, selling more properties than we acquired,’ said Amy Bonitatibus, Fannie Mae spokeswoman.

‘We watch taxpayer dollars like it’s our own money. We have an immense responsibility to get the most possible value from each REO property we sell. We are committed to stabilizing neighborhoods and preserving communities across the country,’ she added.

In fact, Fannie Mae recently launched another program of financial incentives to Realtors to sell REO properties. A note from analysts at Goldman Sachs, titled Foreclosure Sales: Federally Backed Lenders Shifting to Net Sellers, states: ‘Although these entities could hold property off the market to reduce the negative effects of distressed properties on house prices, they do not appear to be doing so…in Q1 the GSEs and FHA became net suppliers of foreclosed properties to the market for the first time since 2009.

Moreover, if the temporary slowdown in REO sales over the last two quarters ends, the federal entities seem likely to add roughly 30 percent to the sales of fore loses property over the next year as compared with the previous four quarters.’

Bottom line, in order for this housing market to recover, the distressed properties need to go, whether by short sales or REO sales. The distress is driving the fear, which in turn keeps buyers on the sidelines. We need investors, and we need first time buyers, and I will say it until I’m blue in the face: These buyers need better access to credit.”

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St Louis Mortgage Refinancing and Consumer Lending News: Lewis Ranieri: Father of Mortgage Finance Revisits Subprime
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Lewis Ranieri, once known as the father of mortgage finance, is daring to revisit the most infamous sector of the mortgage market—subprime lending. Four years ago, sky-high defaults on subprime mortgages which were used mainly by borrowers with weak credit profiles which touched off the global financial meltdown, wiped out hundreds of financial institutions world-wide and destroyed billions of dollars invested in mortgage-backed securities.

Today, lawsuits against Wall Street firms from investors burned by souring mortgage securities continue to meander through the courts. Yet Mr. Ranieri believes now is the time for nontraditional lenders to enter the market.

While the bank-lending standards that created the mortgage crisis were too loose during the housing boom, they are now too tight, Mr. Ranieri says, reducing the supply of mortgages to average borrowers and opening a door for lenders like Shellpoint Partners LLC, a mortgage-finance company he recently founded with two partners.

“The pendulum has swung too far in the other direction,” Mr. Ranieri, 64 years old, said in an email comment. “Former traditional prime borrowers with good credit scores who could comfortably make mortgage payments are being precluded from home ownership due to banks’ rigid criteria.”

Few on Wall Street are as closely tied to the mortgage market as Brooklyn, New York born Mr. Ranieri, a onetime star bond trader at Salomon Brothers who helped to pioneer mortgage-backed securities in the 1980s. More than two decades later, the market developed by Mr. Ranieri and a handful of financial whiz kids came to a screeching halt.

As mortgage bonds, which are backed by millions of Americans’ home-loan payments, defaulted in droves, the ripple effects spread through the global economy, ushering in a devastating financial crisis. Mr. Ranieri also faced a setback in 2008, when a Texas bank he had acquired failed and was seized by regulators.

It isn’t clear whether Shellpoint can raise the large amounts of capital needed to play a big role in the nonprime-loan market. But there is little doubt that consumer demand for alternative mortgage financing is growing as traditional banks shut out all but the most pristine borrowers.

“What Ranieri is doing is exactly what is needed in the market today and serves an important policy need,” says Kenneth Rosen, who worked with Mr. Ranieri at Salomon Brothers in the 1980s and is now chairman of the Fisher Center for Real Estate & Urban Economics at University of California at Berkeley’s Haas School of Business. “We should be loosening credit at the bottom of the markets.”

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St Louis Mortgage Broker and Consumer Lending News: Olick Says If You Build It, Will They Come?
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“Sales of newly built homes fell around 2 percent in May from the previous month, but that was a little better than expectations, given the lousy home builder sentiment number we got this month and the huge supply of competing existing and distressed properties. But let’s put this monthly move in perspective, shall we?

The 319,000 sales pace is 14 percent higher than the record low set in February, but new home sales are still 77 percent below their peak in 2005, and 900,000 is considered healthy. But how’s this for an odd statement: ‘The one positive in this report was the further fall in the number of new homes for sales, from 172,000 in April to yet another record low of 166,000,’ writes Paul Dales at Capital Economics.

‘With fewer new homes for sale than ever before, at some point homebuilding activity will have to increase, but we can’t see it happening for several years yet.’ That’s the positive?

You could look at the home prices, down 3.4 percent, which is less than the 5 percent drop in existing home prices in May. But then you have to remember all the concessions builders are throwing in, and you also have to look at the fact that the median price of an existing home is 30 percent less than that of a newly built home. How’s that for competition?

‘Faced with slower sales, builders initially prefer incentives to price cuts, because they can delay or eliminate the longer term impact to buyers’ psychology and appraiser’s comps if the slowdown is temporary,’ notes John Burns Real Estate Consulting. I’m just not sure how temporary it will all be, again, given the huge amount of distressed properties against which builders compete.

Many of the analysts say simple demographic demand will eventually push sales back to normal levels. Patrick Newport over at IHS Global Insight predicts that will take at least two years.

‘Tighter lending standards for builders and homebuyers, higher commodity prices, and uncertainty over the direction of the economy and of house prices are stifling both the demand and the supply side of the housing market,’ concludes Newport. It seems like I hear this every month. Just wondering what exactly is going to change that quote?”

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Articles and Sponsors

Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

============================================

St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

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St Louis Home Loan Mortgage and Consumer Finance News: WSJ Reports That Resales Are Down
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The real-estate industry’s growth and survival depend on buyers trading up to more-expensive properties. Now, faced with economic uncertainty, tighter lending and a glut of properties, homeowners are hunkering down, forgoing dreams of dens and great rooms, fourth bedrooms and second staircases.

The trend can be seen in the latest report on sales of existing, or previously owned, homes for May, released Tuesday by the National Association of Realtors. Overall, the report showed that sales of existing homes fell 3.8 percent in May, underscoring the weakness of the spring selling season and the uneven nature of the housing recovery. The national median existing-home price was $166,500 in May, down 4.6 percent from May 2010.

But the report also showed that the market is bifurcating. Sales of homes under $100,000 were up 6.7 percent nationwide in May, compared with a year earlier, led by a 58 percent gain in the West.

Meanwhile, sales of homes priced between $100,000 and $500,000 which represents the vast middle tier of the market which declined nearly 19 percent. The middle tier of the housing market has seen less activity partly because would-be buyers often cannot sell their existing homes or have put buying on hold as prices continue to fall and labor markets remain unstable.

Sellers of homes in the middle tier, meanwhile, often won’t capitulate because they are deep underwater on their mortgages. In other words, they are owing more than their homes are worth and thus burdened with debt.

“What negative equity has done to the market is to gum up the conveyor belt that has worked pretty well,” said Stan Humphries, chief economist for real estate portal Zillow.com. “People can’t move up a rung because they can’t get out, or they don’t want to.”

To be sure, the squeeze on the middle market varies by region. Sales volume for homes priced between $500,000 and $750,000 in the Midwest posted a 1 percent increase in May, compared with a year earlier, for example.

And while regional activity coast to coast has been weak, some cities are bucking national trends and posting price gains and reporting strong activity. Median prices in Houston, Miami, San Antonio and Washington, D.C., were all up in May, compared with a year ago.

In many ways, Philadelphia exemplifies the broader demographic shifts affecting real estate nationwide. Baby boomers are retrenching, often selling homes in the suburbs to move back into cities.

Price declines in the suburbs have been steeper than in the city. Multimillion-dollar luxury properties, meanwhile, appear more insulated and continue their rise. Sellers who price aggressively tend to find buyers much faster.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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In-House Financing, Consumer Lending and Customer Financing

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St Louis Mortgage Refinancing and Customer Financing News: Olick Reports Don’t Let the Numbers Fool You
St Louis Home Mortgage and Consumer Loans | Principal Reduction Program | 877-334-0210 or 314-334-0210 | Floyd Tapia, Commercial Mortgage, Customer Finance and Loan Reduction

“Let me preface with an apology for the huge supply of numbers in this post, but if you can make it through them all, I think you will get the picture I’m drawing here. The so-called ‘shadow inventory’ of residential properties is falling, according to a new report from CoreLogic. This is the number of homes with seriously delinquent loans (90+ days), loans in the foreclosure process and bank-owned homes which are not yet listed for sale.

The supply as of April 2011 declined to 1.7 million units, representing a five months’ supply. This is down from 1.9 million units, also a five months’ supply, from a year ago. ‘The decline was due to fewer new delinquencies and the high level of distressed sales, which helped reduce the number of outstanding distressed loans,’ according to the report.

Good news, no? Wait. There’s more: ‘In addition to the current shadow inventory, there are 2 million current negative equity loans that are more than 50 percent or $150,000 ‘upside down.’ These current but underwater loans have increased risk of entering the shadow inventory if the owners’ ability to pay is impaired while significantly underwater.’

And then there’s this other report from Lender Processing Services (LPS), which also reports a drop in newly delinquent loans, but gives the actual, mind-numbing numbers of loans in trouble:

- Number of properties that are 30+ days past due, but not in foreclosure: (A) 4,187,000

- Number of properties that are 90+ days delinquent, but not in foreclosure: 1,921,000

- Number of properties in foreclosure pre-sale inventory: (B) 2,164,000

- Number of properties that are 30+ days delinquent or in foreclosure: (A+B) 6,350,000

There are more than six million properties in distress, a third of those in foreclosure. According to yesterday’s monthly home sales report from the National Association of Realtors, less than five million homes will sell this year, at the current sales pace. There are currently 3.72 million existing homes for sale, representing a 9.3 months supply; that does not include newly built homes nor does it include that six million number.

This vast supply varies from state to state of course, but the overall effect is downward pressure on home prices nationally. I was
interested to see a survey released today by Robert Shiller’s MacroMarkets group (of the Case Shiller Home Price Indices). Every month he asks a group of 108 economists, real estate experts and investment strategists for their home price predictions.

June’s survey found the group’s overall expectations have reached the lowest level since the survey started over a year ago, but, ‘It is apparent that a significant majority of our panelists believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year-end,’ writes Shiller.

But wait, there’s more: The group of 69 panelists who are currently forecasting a 2011 turning point predict less than two percent average annual growth in nominal home prices over the five-year period ending December 2015. Shiller added, ‘If it were to materialize, such a scenario might be better described as a forecast of price stability rather than a rebound.

A 2 percent-a-year home price increase will not inspire a lot of consumer confidence. Given prevailing inflation expectations, this forecast implies virtually no change in real home values going forward.’ So I’m faced with a national picture of over 6 million homes with distressed loans, a 9 month supply of existing homes, a smattering of new construction and no home price growth for at least the next four years. Should I buy?”

We appreciate your visit… how about liking us on Facebook for this St Louis mortgage and customer finance article?

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Articles and Sponsors

Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

============================================

St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

To “read” the boxy black-and-white bar code above, you’ll need a smartphone. If you need a reader APP, you can => Download a QR code APP reader here for your smartphone.