Interest Rate Report for December 9, 2009

Commentary & News:
2:00 pm ET: Cooler heads help market to recover as the DOW remains in negative territory.

1:15 pm ET: Bond prices fell in FAST trade this afternoon driving mortgage rates higher. Prices shot lower following the announcement from the Treasury that foreign accounts did not purchase as much of the 10-year offering as the previous auction. Despite the fact that the participation from overseas accounts was better than average, we initially got clobbered. Like they say in the mortgage business, you are only as good as your last deal. Lets hope cooler heads help prices to recover.

10:00 am ET, Lenders set pricing

Mortgage bond prices opened lower Wednesday morning adding to the losses seen Tuesday afternoon. Bond prices came under pressure early in the day when stock futures were positive, however, despite the DOW Jones index opening lower, rates did not recover. This is a sign the market is concerned over the auction this afternoon.

The only event on tap today is the Treasury auction of $21B ($21,000,000,000) in 10-year notes. Yesterday’s 3-year auction was good, however, sometimes good is not good enough. Indirect bidder participation, an indication of foreign demand for US debt was slightly below expectations, which caused a knee-jerk reaction driving rates higher. Be careful as the day progresses, rates often come under pressure as traders prepare for the additional supply. Auction results are expected by 1:15 pm ET.

Traders will spend the day watching stocks. If stocks move higher, rates will suffer. At pricing the DOW was near unchanged.

Good News Rates are still at historical lows CALL TODAY to lock in your rate no matter if you are Refinancing or Buying a new home it's time to do so!

800-208-4753 OFFICE, 866-610-1514 FAX, 909-631-7530 CELL, DREYES@GMAIL.COM

Modifications and what you need to know your bank is going to ask from you

Loan Modifications are getting approved everyday but I want to take this time and remind people and also educate you on what your bank will ask from you and how the process works.

First thing first the loan modification process will test your patience! Banks right now are so behind on requests for loan modifications. That said the process can take anywhere between 3 months or more than 1 year depending on your situation...

Remember that banks will ask for:

1. Complete tax returns for at least 2 years
2. 1 to 2 months of bank statements
3. 1 to 2 months of pay-stubs
4. Signed hardship letter explaining your financial hardship.
5. Monthly Break down of your Revolving Debt and Living Expenses.
6. W2 for the last 2 years.

If your a self employed Person they will ask for a lot more! (Email me) and I will send you a list!

What gets Homeowners denied is that your bank is going underwrite this loan modification request as if you were buying the home so they will analyze your financial picture. All banks have different Guidelines they will look over and some banks will do a loan modification if you have no money left over on your budget and some request a Net Plus of income to approve a loan modification. I know it's confusing but that's how the banks work.

I would advise anybody that you can do this on your own----but if you do not have the time to follow up sometimes (DAILY but many times weekly) OR get the the requested Documents banks may ask in a timely manner than hire someone to do it for you. In most cases you do not need an attorney to do this! Only if you have proof that you have been wronged when you received your loan or feel you the bank has broken laws when you received the loan would i say to go and hire an attorney! I have successfully done many modifications to state this.

Hope this helped! Remember! Don't Give up and If you need help feel free to contact me with any questions you may have! 800-208-4753 OFFICE OR REFIONCE@GMAIL.COM

ASK ABOUT OUR HOLIDAY SPECIAL! NO UPFRONT FEES CHARGED UNTIL THE LOAN MODIFICATION IS APPROVED!