Where to Get A Funny Santa-Mozila Loans.

Dear Tom: California Cities Provide Santa-Mozilo Loans to Upset Mozilo & Geroge Bush

Question: where did you find the 8 page pdf?? I would like a copy of it.. and what cities are you aware of that have this program? Thomas Hargreaves (Teamwork Financial Services)

What a coincidence! God wants you know what one of the cities I am talking about. So go to the city's website and you can see its first time buyer's program. It is identical with the 8 page pdf form, but I don't blame you if you could not see the whole or the best part of "Santa-Mozila" loan at the city website: http://www.comptoncity.org/cra/redevAgency1a.html). Just please don't ask me why the website used a brief word "silent" and didn't clearly spell out the goodies: the 2nd lien can be forgiven, no interest, and no monthly payments.

For the same token, don't assume your city don't have the same good free stuff by just clicking and looking at its website. Remember there is a saying, "Don't judge a book by its cover." Dig it out by yourself.

FIRST TIME HOMEBUYERS PROGRAM

The Community Redevelopment Agency (Agency) of the City of Compton has designed the First Time HomebuyersProgram (Program) to relieve the prevailing housing affordability crisis in the community. The Program consists of a SecondMortgage, which is in the form of a Silent Second Deed of Trust. An eligible household may receive second mortgage assistance up to $100,000.00. The amount awarded, however, will be based on the need for each household on a case-by-case basis.

WHAT IS SECOND MORTGAGE ASSISTANCE?

Second Mortgage Assistance is a mortgage subsidy provided by the Agency to a first time homebuyerin the form of a deferred Second Deed of Trust loan. The Agency's subsidy shall be used to reduce the price of the home to enable the homebuyer to qualify for the purchase of a home at an affordable level. The maximum loan awarded by the Agency is $100,000, which may be used towards down payment and closing costs.

The funds may be used for a larger down payment to satisfy the difference between the amount for which the buyer qualifies and the actual amount of the property. For example, if the property sells for $310,000 and the family qualifies for only $210,000, $90,000 of the $100,000 subsidy may be used to reduce the mortgage, and up to $10,000 may be used towards closing costs.

After securing the loan with a Second Deed of Trust, a lien will be placed against the property that is being purchased with the Agency's assistance. The Agency will serve as the Program Administrator, and participating mortgage lenders will be responsible for processing and underwriting the homebuyer(s) applications for a first mortgage.

Please also check the following article and see the house in Compton, CA. Find out how you can take advantage of it out of the housing downturn. Don't just sit on the fence complaining, "I can't do anything," while the opportunity boat is here.

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When we get to the featured home of the day, you are going to see a home that has dropped 71 percent in one year! Stunning example of what was produced by this housing mania...

So with that, let us now take a look at today's Real Home of Genius. Today we salute you Compton with our Real Home of Genius Award.

The Dash to the Bottom

This home is 500 square feet and was built at the end of the Great Depression in 1939. It has one spacious bedroom and 1 large bathroom. As we are told in the ad that there is room to "add" which you may need to do if you need more space than 500 square feet. Again, is it really that difficult to move the garbage bin before taking a picture? So what is the sales history on this place? Let us take a look:

Sale History

07/21/2008: $235,060 *

09/27/2007: $340,000

I really have to sit in amazement at that sales price that occurred last year in September. Which institution wrote that mortgage? ... Some have been under the impression that after the credit crunch in August, that all of a sudden bad financial housing moves had ceased to plague the market. In fact, the above is simply an example that horrible lending is still occurring... Yet that September 2007 purchase price of $340,000 is a real deal.

So what is this home now selling for? How about $97,900. That is right folks, this home "depreciated" 71% in 11 months. This simply drives the point home at how horrific the mortgage industry really has become. Keep in mind the $340,000 loan was made 11 months ago! This isn't a loan that was made in 2005 or 2006 at the peak of insanity but after the credit crisis hit. The good news is that the current price may actually make sense for someone since the payment would work out to something like:

PITI: $720/per month 30-year fixed at 6.5% (see note 2)

Note:I am not in the mood to write today. My response to Dr. HB's article is very limited to just to the funny sentence "Again, is it really that difficult to move the garbage bin before taking a picture? " Then, I added the following:

Note 2: To me, the article is somehow not perfect if Dr. Housing Bubble didn't mention the Compton's Santa-Mozila loan (Real Homes of Genius: Foreclosing to the Bottom. Today we Salute Compton with a Stunning 71 Percent One Year Decline.) (Clearly, under the city Santa-Mozila loan, the new monthly payment shall be $285 or less. Very affordable, am I right?)