patrick.net

SKIBUM,

As a borrower you should be safe if your lender goes bankrupt. The new lender must honor the original terms and conditions. The link you posted is extremely rare and the the dispute is about PITI accounts (where lender pays taxes and insurance).

Have you heard of any Credit Union going bankrupt? I am talking about credit Unions and I already posted links. Call them if you have doubts.

I have

Apparently under Federal law credit unions can't file for bankruptcy though.

@hithere
I did check the patelco site, the zero point CA loan with 10% down was 7.22 APR (no points). Thats a good rate. I will definitely check out the CU's if I ever get another loan. Any direct lender is worth checking out. thanks.

HiThere,

Here's aSF Fed Reserve study on credit union failures.

http://www.frbsf.org/publications/economics/letter/2005/el2005-20.html

In short, yes, it does happen, and in fact it happened a lot in the tight credit situation of the 1980's. Sound familiar?

SKIBUM,

How do you lose if your lender goes bankrupt. According to your article their was dispute as the the bankrupt lender didn't filed taxes and insurance for PITI accounts but original terms and conditions of the loan don't change

HelloKitty.

I am posting again.

http://patelco.org/rates/fixed_rates.aspx

Where does it say 7.22? To get 6.625 APR rate on JUMBO it should be 80% LTV but you can avoid that by doing 80+15+5. 80% 1st at 6.62%, 15% 2nd with 8.25% and 5% down.......putting down 10% will improve the APR...Call them, their customer service sucks but I stuck with them for the great rates.

There is apparently a real risk that borrowers from AHM will be foreclosed on because they fell behind on the "T" and "I" payments. That's how you lose in that situation. I'm not saying it will be a widespread problem, just that Hello Kitty's idea of sticking with a more reputable and larger bank is not a bad idea in today's climate.

On the other hand, all bets are off if CFC tanks. (Looks like they have another bailout in loans as of today).

their=there

HelloKitty,

The APR should be 6.72% with 0.5 Points with Patelco

HelloKitty,

Also check dcu.org. They offer better rates than Patelco.

http://www.time.com/time/magazine/article/0,9171,1661682,00.html

Not even the Real Estate Agents

"The housing market in Detroit is a mess. Such a mess that nobody tries to deny it, not even the real estate agents. "The market is very, very bad," laments Jennifer Weight, hosting a deserted Sunday open house in the suburb of Bloomfield Hills. "It's terrible."

"In metropolitan Detroit, the 11% drop in home prices over the past year was just one more sign of a local economy in decline thanks to the troubles of the auto industry. In San Diego, the drop of 7.3% came out of the clear blue sky. The city still has jobs to offer. Beaches too."

OK, so 7.3% plus 3% or so for inflation, so a real decline of about 10% in San Diego?

@hithere
Yes I see the 6.72 for the jumbo with .5 but if you click on the 'choose rates' feature you can adjust the rate for your State/LTV.

I used CA/10% down payment and it gave 7.22

the 6.72 rate is 80% ltv(20% down)

Sorry for the confusion.

Allah,

You posted the link and then again you clarified. Yes under federal law Credit Unions can't file for bankruptcy. In crisis time like you cited above, they get merged with another one but the customers are protected.

"However, investors refuse to buy riskier loans. So, lenders have had nowhere to unload subprime, jumbo, and other nontraditional mortgages. There's no sign that's easing, as secondary markets for riskier assets have been frozen since the middle of the summer."

http://tinyurl.com/29hqlj

Hellokitty,

That's right. I have a loan with Patelco. They are mainly based in San Francisco/Sacramento area. I can tell you a trick. If you really looking for a loan, call them....don't do online appln. You get to talk to the loan officer they assign to you and you can play different options like 80+10+10 to make that 7.22 no point APR even better.

HelloKitty and SKIBUM,

What I was saying that 20% down payment requirement is overstated. If somebody has good FICO, they can get JUMBO with 5%, the sub-prime borrowers are having problem.

Skibum,

No apology anticipated - I love a roaring tease...

What instrument is problematic, as I've been at this for a while. Studied harpsichord and clavichord with I. Kipnis undergraduate, then organ 'period practice' with A. Heiller and Albert deKlerk post-grad. I'm enormously fond of piano, but can't say I cut much of a figure. Omnibus answer is 'keyboards'.

I remember in 1996 SoCal felt a lot like Detroit at least it seems that way now. They 'lost' auto worker jobs and SoCal lost the aerospace jobs.

It seems to me web 2.0 will crash when goog says 'we are not buying any more companies'. The next day 1000 start ups will shut down. They are that powerful it seems. I suppose a huge recession and large decrease in ad revenue could cause them to do this at some point....

The next boom people talk about all the time may be the unemployment boom. How to retrain for new career boom. How can I extend my welfare/gov benefit/unemployment checks boom. Customize your resume boom. How to network for a job seminars,etc.

Does KKR's (at long last) completion of the Boots deal suggest the liquidity freeze is thawing a bit? Are there implications for MBS? Dammit where's Randolph?

It seems house price in Cupertino just doesn't seem to drop..how come Cupertino remain immune to the turmoil? There are still 30 offers to a one million dollar house...is it because there of all the compaines and their stock options..? It's just killing me..

With all this disparaging of mortgage brokers, someone should stick up for them?! Obviously, you don't want to go to someone working out of a back room, but the volume guys depend on getting people good deals and having satisfied customers refer them to their friends. I tend to think there aren't many folks who can beat my no fee refi (conforming-30yr. fixed) rate done near the bottom of the rate cycle. Then again, maybe I am naive and got hosed by junk fees... but I would have no problem going into battle with my broker (if, ya know, he was marching in front of me :-))

SFWoman,
The Time article is quoting S&P Case/Shiller Home Price Index numbers, so the reality is probably even worse, as they have overbuilt condos, which aren't even included in the the Index (and of course, new homes/condos are not included either).

I know of two cases where Dumbo-loans have been held up. I referred to one of them in another thread too.

Case 1. A pending-sale in Saratoga broke down because buyer could not get financing for an 850K mortgage. The seller agreed to give buyer additional time to look for other funding, but it still did not work. (July-August)

Case 2: A buyer who tried to get pre-approval could not get a reasonable rate for a 600K loan because his wife had started working recently after a three year break. They have phantom-equity of 400K in their current home, plus a sizable down-payment. They were also baited-and-switched by several mortgage-brokers who promised a 6.5-to-6.875 rate, but then tried to sell them 8% loans.

Re: the RandyH-Allah spat, it is a shame. Both of you have contributed useful and interesting insight, and it looks like your difference of opinion wasn't _that_ different. We all sometimes end up arguing past the point of tedium, so why not stop flogging the poor dead horse?

SP

skibum,

You should send the Chronicle some fan mail, look at how they are setting up the DQ numbers: Bay Area home sales plunge 25%.

Bubbleswamy, it seems that people in Cupertino work too much and do not watch the news. Certainly there is a lot of money out there, but once the sentiment becomes commonplace the decline will ensue. It is merely a matter of time before the bloodletting commences.

EBGuy,

Did you refi your 1st or 2nd? I have re-fied my 2nd recently. It's an amazing deal from Wachovia directly through mail. I think they send offers to qualified customers. Whwn the market rate for 2nd (fixed rate home equity loan) is around 8%, they offered 6.95% 30 year fixed with no closing cost.

Certainly there is a lot of moneyliquidity out there, but once the sentiment becomes commonplace the decline will ensue.

Nowadays money is made mostly in natural resources.

You posted the link and then again you clarified. Yes under federal law Credit Unions can’t file for bankruptcy. In crisis time like you cited above, they get merged with another one but the customers are protected.

That was all supposed to be in one post, but I screwed up and hit the submit button before completing it. :lol:

Yes; the depositors are protected to $100k through the FDIC just like most banks.

What if there isn't another credit union that is willing to merge with them? They can go under, they just can't file for bankruptcy protection.

Peter P Says:
No one should remain on death row for more than six months. Some innocent people may be wrongfully executed, but come on, how many people get killed on the highway every day?

oh well, as long as you don't mind it happening to you, that's the litmus test...

apart from the difference that car accidents are accidents, and the death penalty is deliberate and wilful...

oh well, as long as you don’t mind it happening to you, that’s the litmus test…

This is why it should be swift. In case it happens to the wrong person at least there will be minimal pain.

Allah,

As a borrower, I wish that happens to me. My credit union goes under and I don't need to repay ......that's perfect.

It seems to me web 2.0 will crash when goog says ‘we are not buying any more companies’. The next day 1000 start ups will shut down.

Didn't Google sort of announce the opposite the other day?

Peter P Says:
This is why it should be swift. In case it happens to the wrong person at least there will be minimal pain.

which could be you. and who will be the arbiters of this 'logan's run' world? and what about the lawsuits for wrongful execution by the families when a little more digging and investigation after the incompetent or corrupt cops shows the party was innocent? so this is utopia?

It seems house price in Cupertino just doesn’t seem to drop..how come Cupertino remain immune to the turmoil? There are still 30 offers to a one million dollar house…is it because there of all the compaines and their stock options..? It’s just killing me..

Bubbleswamy,

Oh, I don't know. Maybe you could go back to your Realtor playbook and find the answer yourself. It's probably one of these choices:

- real estate prices ALWAYS go up
- Cupertino is SPECIAL. (Just drive down beautiful Stevens Creek Blvd to see for yourself)
- They're not making anymore land in Cupertino
- Rich foreign immigrants are buying like crazy.

Actually, that last one may really be true.

so this is utopia?

Not more so than the one envisioned by Karl Marx.

which could be you.

It could be me eating contaminated Fugu too. :)

Peter P,

I am so going to buy you Battle Royal (the Japanese movie) for X-Mas.

randy is dead :cry:

long live randy! :D

i think allah and randy were actually in agreement, they just couldn't untie the gordian knot...

i think allah is actually OK, and has done some good posts, not a troll, so i think both will be back once this little spat is cleared up...

I am so going to buy you Battle Royal (the Japanese movie) for X-Mas.

I heard good things about that movie.

I just watched Equilibrium (2002, Christian Bale). It is a rather good movie. :)

Rich foreign immigrants are buying like crazy.

Rich Middle-east/Russian immigrants may be buying like crazy in London.

I am going to say this one more time: the Bay Area is completely unattractive to truly rich people.

I suppose I should post on the old thread - Just got a whole load of listings from an agent - tons of them have been reduced and only one sold for more than asking all the rest were for less - Sunnyvale/Blossom Valley/South San Jose - there is hope yet!!!