· Current mortgage must be owned by Freddie Mac or Fannie Mae
· The mortgage must have been closed prior to May 31st, 2009
· Must be current and meet traditional conventional loan credit standards
· Loan to Value is no longer calculated. (Previously LTV could not exceed 105%. Technically the LTV could have gone to 125% but very few lenders participated at these LTVs)
This is a huge win for Nevada. There are really only a few markets where housing depreciated by more than 125%, so the majority of the home owners across the country were able to take advantage of the program when it first rolled out nearly 2 years ago, while many home owners in Nevada were “left out in the cold”. Please feel free to share this email with your past clients. Every home that doesn’t go into foreclosure is another home that won’t be listed on the MLS for sale, and our housing market recovers sooner. Savings of $100-$200 per month per household will also be a boost to our local economy, as it will provide more discretionary spending.
Financial Markets
The Dow Jones quietly had its best month ever, increasing over 1,000 points, over 12%. The Dow ended Friday at 12,231. The bond market, in typical fashion, moved in the opposite direction, and mortgage rates have gone back up to the levels they were from about 1 month ago.
Southern Nevada Real Estate and Economy
September Sales data is more of the same. 405 new home sales recorded with an average sales price just over $206,000. 4,281 resale homes were recorded for the month with a median price of $108,100. 50% of the homes were foreclosures, roughly 25% were short sales and slightly over 50% of the homes were purchased with cash.
