NorCalSavant

On June 24, 2009, President Obama signed the Consumer Assistance to Recycle and Save (CARS) Act of 2009.  It was actually included as Title XIII in HR 2346, the Supplemental Appropriations Bill for Iraq, Afghanistan, Pakistan and Pandemic Flu.  The full text of HR 2346 including Title XIII is available at this website.

The CARS Act provides consumers incentives to replace an old gas guzzler with a new fuel-efficient vehicle.  If you have a less than 25 years old car, and it was rated for less than 18 mpg when new, you can get a government voucher for $3,500 or $4,500 from the dealer towards the purchase of a new more fuel-efficient vehicle.  The $3,500 voucher applies when the mileage improvement is between 4 and 10 mpg.  The $4,500 voucher applies when the mileage improvement is more than 10 mpg. Continue reading Cash for Clunkers - Good for Your Personal Finances, the Environment, or the Auto Manufacturers?

There was an interesting article in the New York Times detailing the plight of Eileen Ulery, a homeowner in Mesa, Arizona caught up in the delinquency/foreclosure crisis. She basically owes $143,000 on a house worth only $122,000, a loan to value of about 117%. She lost her job at Arizona State University with an income of about $26,000 per year, while her house payment has gone up to more than $1000 from about $600 per month. Continue reading Eligible Homeowner Facing Delinquency Rejected by the Bank for a Loan Modification

The moratoria banks had on foreclosures have expired, and a steady stream of foreclosures is expected to hit the market throughout the remaining year. As these foreclosed properties add to the supply of houses on the market, home prices are expected to continue to decline or stay declined. Continue reading More Federal Foreclosure Mitigation Programs for Delinquent Homeowners, but How Effective?

With the ongoing recession things have not been looking too good for California’s budget.  With politicians entrenched in Legislature and ideological camps with safe gerrymandered seats, there has been no clear solution to matching state income with state expenses.  State Legislature and Governor Schwarzenegger have taken some half-hearted measures, although the problem seems far from being solved. Continue reading California — Welcome to One of the Highest Sales Tax Rate in the Country, But No Sales Tax Holidays

Last week Treasury announced the Second Lien Program to work in tandem with the primary mortgage modification under the Home Affordable Modification Program to help homeowners avoid foreclosure.  Treasury also announced new lender incentives under the beleaguered Hope for Homeowners Program for underwater homeowners.  Are these new programs going to make a difference in continuing foreclosures?  Is there new hope for a homeowner facing foreclosure in the worst affected markets in California, Nevada, and Florida? Continue reading Is Treasury’s New Second Lien Program Going to Make a Difference to Foreclosures?

Interest rates are low, and house prices are down, but all you eager mortgage buyers out there, beware.  Mortgage fees and private mortgage insurance (PMI) have gone up, sometimes based on the credit score, and underwriting and appraisal rules have changed for the worse. Continue reading Home Prices Down, Mortgage Interest Rates Down, but Buyer Beware - Mortgage Fees Are Up

In my earlier post here, I had discussed the details of President Obama’s Making Home Affordable Program.  The program has two components — Home Affordable Refinance program for solvent homeowners with a loan-to-value as high as 105%, and Home Affordable Modification program for delinquent or nearly-so homeowners unable to pay their mortgages.

Continue reading FICO’s MortgageReliefOnline.com for Free Credit Counseling and Assistance with Making Home Affordable Program

In his address at the 2009 Credit Markets Symposium in Charlotte, North Carolina, Federal Reserve Chairman Ben Bernanke said on Friday, April 3 that the Federal Reserve has been pursuing a strategy of credit easing to address the current crisis involving a severe disruption of credit markets and declines in asset prices.

He said, “As best we can tell, so far the programs are having the intended effect.”  He cited a drop in the 30-year fixed mortgage rates as an example.  It is true that the 30-year fixed mortgage rates have dropped dramatically to historically low levels.  But, can the same success be seen in other metrics signifying the credit crunch?  Has the credit crunch ended already?  Are the banks lending like before? Continue reading Ben Bernanke’s Credit Easing — Mortgage Rates at Historic Lows, but the Credit Crunch Continues

Treasury Secretary Geithner unveiled the new Public-Private Investment Program for Legacy Assets (PPIP) on Monday to a huge applause by the Wall Street and many questions from the skeptics.  PPIP is the Obama Administration’s plan to purchase the toxic assets off the banks’ balance sheets.  What is involved in the Public-Private Investment Program?  Will it do the job?  Is it a clever plan?  How does it affect personal finances? Continue reading Is Treasury’s Public-Private Investment Program for Toxic Assets a Dud, or a Clever Plan and an Opportunity for Personal Finance?

The Treasury Department has finally come out with detailed guidelines for the Making Home Affordable Program.  This housing rescue plan is estimated to cost $75 billion and help seven to nine million homeowners.

Is the plan going to reduce foreclosures?  Is it going to help delinquent and solvent homeowners?  And, is it going to be good for the economy? Continue reading Is President Obama’s Making Home Affordable Program Going to Stem the Tide of Foreclosures and Improve the Economy?