Lower rates has motivated some homeowners to refinance, but they wonder if are able to do this.
Just few years ago, during the housing boom, lending standard was that anyone could borrow 100 percent of the home value. Moreover, there was no need to document any income, and no one cared about recent credit history.
Nowadays requirements are more strict, house values have fallen and federal government has taken control of Freddie Mac and Fannie Mae.
This facts has coused that refinancing has no sense because the total savings are lower than closing costs. If yo live in Southern California where properties was overvalued, you might not be able to refinance a home loan even if you made more than 20 percent down payment.

Real Estate Disposition Corporation (REDC) announced that foreclosed homes had been sold for $254.5 Million in 10-day event.
This impressive auction sales was dedicated for homes in Southern California from San Diego to Santa Barbara.
Established in 1990, Real Estate Disposition Corporation (REDC) is the biggest Auction Marketing firm in the USA.
Dominant position of REDC is a result of $3 billion selling in Real Estate assets since May 2007 to Apr 2008.

Many homeowners of mortgage brokers in Northern California are looking for ways of refinance their loans.
This number is huge, more than two-thirds of mortgage brokers clients are interested in this service, but many applications can’t qualify for refinancing.
Mortgage debt is much riskier than it was just a few years ago during boom.
A parson looking for loan with a $1,170 monthly payment now is able to afford a $180,000 loan, five years ago was abble a $200,000 loan.

California-based RealtyTrac reported that more than 77,000 properties in USA has been repossessed by lenders in July.
California is among states with the highest foreclosure rates.
Nationwide at least 272,000 households received more than one foreclosure notice in July.
Mortgage loans crisis has expanded more that subprime market when started just one year ago.
The CBO evaluates that 35 percent of people that enter the home refinancing program will default.

Private money lenders provide financing sources for real estate market lenders. Individuals or groups of lenders count on high rates of return, and they make loans to people with bad credit.
Only in California this business was worth many billion dollar, before big banks like Washington Mutual and Countrywide got into the act. In 2007 privately funded loans market in California was worth $3.3 billion.
This year many privete lenders is fielding inquiries, and the number is higher than last year.
In this way of lending the most important is equity in the property to secures the loan and assurance that borrowers repay on time, lenders don’t mind credit scores.

Platinum Funding, California-based company, provides tips for any person looking to sell, buy, or refinance a home.
This is related with subprime lending crisis and it is dedicated to consumers which need a guide, because mortgage market is different from the one that existed just few months ago.
Platinum Funding service offers the advice for ARMs borrowers too. If ARM is subprime, Alt-A, or even person, which are looking for loan have a pre-payment penalty, Platinum Funding will help to reach financial goals.

Congress took steps to reduce borrowing costs in some expensive markets, and add “jumbo conforming” loans to borrowers options.

• Conforming - mortgages eligible for purchase by Fannie Mae and Freddie Mac. The current limit is $417,000.
• Jumbo - mortgages with loan amounts that exceed $417,000. Rates on these loans have risen sharply in the past year as investors became more cautious in response to the credit crisis.
• Jumbo conforming - a new type of loan created to help borrowers in some high-priced markets. These loans can exceed the standard conforming limit yet are eligible to be purchased by Fannie Mae and Freddie Mac. The higher limits only apply to certain markets.
• The Federal Housinf Administration (FHA) also certain higher-limits. Borrowers can make smaller own payment, but also have to pay for mortgage insurance.

The number of homeowners in California taking out reverse mortgages, in which company makes monthly payments to the owner, has declined over the past years. It is opposite to national trend where number of reverse mortgages has been rising.
This situation is caused by the fact, that home values in California have fallen sharply, becouse loan amount is based on value the home, and homeowners have less equity against which they can borrow.
In the Sacramento metropolitan area the median home sale prices has fallen by a third since 2005. Less equity caused that maximum amount of a reverse mortgage is $362,000.

California is the most expensive and least affordable housing market in USA.
For calculations was used a house measuring 2,200 square feet, with 4 bedrooms and 2.5 baths in a middle-management neighborhood.
The highest average price is in:

• Beverly Hills, CA - $1.800 million
• Santa Monica, CA - $1.767 million
• La Jolla, CA - $1.762 million
• Santa Barbara, CA - $1.700 million
• Palo Alto, CA - $1.652 million

When we compare median household income to median home price stats we will receive this:

• Los Angeles, CA - $56,200, $523,000
• Santa Ana, CA - $78,300, $626,000
• Modesto, CA - $54,400, $372,000
• Stockton, CA - $57,100, $310,000
• San Diego, CA - $64,900, $477,000

Golden State, especially Southern California is the most expensive.

money.cnn.com

Plan against foreclosures, announced six month ago by California Governor Arnold Schwarzenegger, has limited impact on preventing it.
In the first quarter of 2008 lenders reported modifying about 24,000 subprime loans, almost 11,600 more used temporary relief from payments. Lenders who joined agreement last November, refinanced 10,831 borrowers into new loans.
During the first five months of Schwarzenegger’s plan, 98,925 loans have been reworked.
Main goal of agreement was to freeze interest rates - monthly payments of 500,000 adjustable subprime loans in California would reset within 18 months.
In the five months, rates have fallen, but new monthly payments won’t reset significantly.