Stimulus money: SF has fewest homes that qualify for Obama rescue
Filed under: Borrowing, Budgets, Home, Real Estate, Mortgage Confidential
The San Francisco Bay Area has the fewest homeowners in the country who are eligible for the refinancing included in President Obama's housing rescue package, according to a San Francisco Chronicle story.
The real estate service Zillow.com offered an analysis of loan data and found that more than 90% of Bay Area mortgage holders can't qualify for the low-cost refinances.
"The Bay Area is being hit by the fact that it's high-priced, and therefore the loans that were made around the peak years were not conforming (meaning they were above $417,000), and secondly, that (the housing market) has gone into such sharp decline that many homes are underwater by more than 5%," Stan Humphries, vice president of data and analytics for Zillow in Seattle, told the Chronicle.
The White House plan calls for assisting homeowners whose home equity had dwindled by letting them refinance into lower cost mortgages, potentially saving them hundreds of dollars a month and reducing the risk that they may lose their homes to foreclosure.
But the plan is only available to people who took out conforming loans of less than $417,000 and whose homes are not more than 5% underwater, meaning what they owe isn't more than 5% greater than their home's value. The Chronicle used an example of a home now worth $300,000 and the homeowner owes $315,000 could qualify, but not if the value dropped further.
Just 8.4% of homes in the San Francisco metropolitan region meet those criteria.
Reader Comments (Page 1 of 1)
3-07-2009 @ 10:35PM
carmen said...
My question is why are the mortages companies being so cruel? I was laid off in December 23rd, 2008 and I got in contact with my mortage letting them know what was going on. I specifically told them that Dec 2008 and Jan.2009 I was not going to be able to send them my mortage till February 2009. I am now sending my payments like I said I would. But I got a certified letter today stating I have till April 2nd 2009 to pay my 2 months behind or they will start the foreclosure. I am behind $2,437.02 and $167.22 late charges. I am still unemployed and looking hard to find a job. Why aren't the mortage company wait till I get a job and be able to get current. Do they get a kick out of the desperation of us sturggling to keep our homes? Readers what is your advise, where can I get some help while I get a job.
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3-18-2009 @ 10:48PM
james said...
I would refer all those with a mortgage to remember the last time you checked out at the grocery store. What would the checker say if you could pay for your purchases "next" month.
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3-20-2009 @ 10:45AM
JANSKSOR said...
I'M NOT SURPRISED. PEOPLE DON'T QUALIFY BECAUSE QUALIFY. LENDERS HAVE RAISED THE THRESHOLD FOR LOANS. THEY RAISED THE CREDIT SCORES NECESSARY TO SECURE LOANS, SO THEREFORE THOSE PEOPLE WHO NEEDED THE REFINANCING CAN'T QUALIFY. THEY DON'T WANT TO GIVE OUT LOANS AT LOW INTEREST RATES. HOW DO THEY MAKE THEIR TREMENDOUS PROFITS AT OUR COST. THEY ARE HOLDING ON TO THEIR MONEY UNTIL INTEREST RATES RISE.... GREEDY FINANCIAL INSTITUTIONS.
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