New Mexico

Worst and best credit scores by State

Posted by admin on January 19, 2009
California, Florida, General advice, Nevada, New Mexico, Texas / No Comments

According to Steve Sailer’s website, the top ten states with the highest average consumer credit ratings are found among the people of:

South Dakota 710
Minnesota 707
North Dakota 706
Vermont 706
Massachusetts 703
New Hampshire 703
Montana 701
Iowa 700
Wisconsin 699
Maine 699


In contrast, the ten populations with the worst average consumer credit scores are:

Texas 651
Nevada 655
Arizona 659
New Mexico 663
Louisiana 663
South Carolina 665
Oklahoma 666
North Carolina 667
Arkansas 668
Mississippi 668

California (672) and Florida (673) are closer to the bottom than than the top.

Texas largely escaped the mortgage meltdown due to low land prices and high oil prices, but this suggests there might be trouble in Texas ahead if oil stays around $40 per barrel.

Mortgages hard to find in New Mexico

Posted by admin on December 22, 2008
Mortgages, New Mexico / No Comments

Since the Government’s $700 billion financial bailout in October, things have only gotten worse for New Mexico’s home builders. The national bailout was suppose to infuse the capital markets with enough money to trickle down in the form of small business loans through regional banks. In the past 45 days, builders say banks have made their lending policies more onerous. They feel squeezed between consumers who aren’t buying homes and banks that are making it harder to refinance their speculative projects. Lending on new spec projects has died while banks are seeking increasing equity stakes and higher interest rates on current developments whose loans have matured and are seeking renewals. Without renewals, foreclosures could mount.

It’s ominous for the overall regional economy because of hundreds of job losses as builders are abandoning projects throughout the city. Rio Rancho and the northwest quadrant are especially hard hit, where hundreds of approved lots are growing weeds and not homes. No builders are stepping up to acquire abandoned but already platted projects because land prices have yet to drop significantly. And they can’t get the financing.

“Right now our members are very stressed. They were caught with spec homes and have no money coming in from sales. Their loans are expiring and the banks are raising their interest rates on them,” said Steve Nakamura, president of the Home Builders Association of Central New Mexico. The president of Rachel Matthews Homes describes his declining membership as “scraping bottom.” “Everybody is talking about a mortgage- lending bailout, but that is not what is killing our industry. Seventy percent of residential building is small business and 30 percent are the big tract home builders. That 70 percent can’t get loans. The banks have got to lighten up. If we can’t build anything, it also effects our subs [subcontractors] and suppliers.”

Otley Smith is trying to hold on to his spec home projects in La Cuentista on the Westside and in North Albuquerque Acres. He said he has never missed a loan payment and thought he would be treated favorably when his loans needed renewing. Instead, his loan rate climbed 2.5 percent, which translated into $800 extra per month in payments. On a condo project in Corrales, his bank asked for a 9.25 percent interest rate compared to his initial 8.25 percent rate. Smith hired a lawyer to pressure the bank to keep the loan at 8.25 percent and it worked. On another loan, he pulled his business from a local institution and found a more suitable loan at a Bank of the West branch. He decries the banks for not wanting to take on any risk.

“We’re in a vicious cycle,” Smith said. “It’s real common now on renewal notes for banks to require more equity in deals. If your deal is $100,000 and the bank was carrying $80,000, they now want the developer to buy it down to $60,000. They want cash.”

Bankers say renewals are requiring some cash and they can’t do loans tied to the prime rate, which has dropped to just 4 percent. They admit their reluctance to take on new speculative projects.

“There is such an excess of supply that it would be hard to justify how a new spec project would be viable. Those kinds of loans have pretty much ground to a halt or close to it. We’re doing a few loans for pre-sold homes for our steady customers,” said Pat Dee, president of First Community Bank. “When loans mature, we sit down with our existing developers and try to come up with a plan that makes sense for both sides.”

Larry Levy, senior vice president of Bank of Albuquerque, said banks today are under the constraints of the federal government and must carefully monitor their real estate portfolios, making sure that loans “don’t sit still.” David Murphy, publisher of SalesTraq New Mexico, which focuses on new home sales, predicts at least two to three national builders will leave New Mexico in 2009. He foresees smaller builders pooling resources.

“When just 26 new building permits were issued in September in Albuquerque, that is not a recession, but a depression,” Murphy said. “When you look at homes priced $750,000 and above, at best there is a four-year supply on the market now and at worse, it’s a nine-year supply. If you’re looking for the silver lining, homes in the $100,000 to $200,000 [price range] have sold well — there is just a six months supply.”

New Mexico versus Florida real estate

Posted by admin on November 14, 2008
Florida, General advice, Mortgages, New Mexico / No Comments

New Mexico and Florida are both in the United States but from the mountains of northern New Mexico, the contrasts with Southwest Florida can be startling. Taos itself is a small town, and kind of funky. The town is an art center. There are more galleries than churches. You can feed yourself pretty well on a weekend simply by going from one gallery opening to another and trolling on the hors d’oeuvres and wine they put out.

The social center of Taos is the local Wal-Mart. Everybody goes there and you hardly ever get through the store without bumping into friends and acquaintances. The corporation wanted to put in a huge, warehouse-sized super Wal-Mart, but the town’s merchants pressured the politicos to turn down the idea. It would wipe out the local stores, they feared. The same thing applies to banks. There are no branches of national banks, such as Bank of America, in Taos. The local banks have the town to themselves. They’re very good banks and the people working in them are uniformly friendly, helpful and knowledgeable.

Personally, I would rather retire to New Mexico than Florida...

Personally, I would rather retire to New Mexico than Florida...

Naples, Florida, used to be a small town, but it’s grown into quite a sizable city. Local residents urge the city to put in sidewalks; they don’t regard sidewalks as “uppity” affectations. People are much friendlier in Taos than in Naples. They smile at each other on the street and say hello. Cars stop to let pedestrians cross the street, even in the middle of a block. Naples was like that once, but the city’s growth has smothered most of that small-town warmth. Nowadays, when you smile and say hello to a stranger on the beach, the stranger looks startled and hurries away.

There are no high-rise buildings in Taos, nothing taller than three stories. But just north of town is Taos Mountain, which stands more than 10,000 feet high and gives me the feeling of a guardian spirit, somehow, protecting the town. You get mystical feelings like that in the mountains of New Mexico. It truly is a land of enchantment, as the state’s motto proclaims.

There are the Sangre de Cristo mountains to the east of town, and when sunset paints them red you understand where the name came from. The mountains almost seem alive: as you watch them during the course of a day they never look quite the same from one hour to the next. Clouds dapple their wooded flanks with shadow. During the “monsoon season,” when there are brief rain showers most afternoons, gray clouds can hide the peaks. In winter, snow covers the mountains, much to the delight of skiers and ski-resort workers and owners. Taos Ski Valley, Angel Fire and other ski resorts are all within a half-hour’s drive from downtown.

The beautiful Ghost Ranch in Northern New Mexico.

The beautiful Ghost Ranch in Northern New Mexico.

Florida, of course, is notoriously flat. I think the highest point in Collier County is an overpass on Interstate 75. We have water skiing in the Gulf, but winter sports in Naples consist mostly of watching football on television. There is tennis both in Naples and in Taos, and there are some differences between the two. At more than 7,000 feet, it’s sometimes hard to catch your breath, of course. But although the air is thin, it’s also clear almost every day (except for the “monsoon” showers). The ball goes faster and flies farther in Taos. When we get back to the Quail Creek Country Club in the Naples area, hitting a tennis ball feels like socking a wet brick, until we get acclimated to the thicker, wetter atmosphere.

In general, New Mexico is much poorer than Florida. Like Naples, Taos is heavily dependent on tourists. The town began as an Indian pueblo, but early in the 20th century it became an art center; everybody seems to be a painter, and art galleries line the main street. The current economic recession has hurt Taos. Galleries and restaurants are closing. Construction of new homes and condominiums has ground pretty much to a halt. But that will change, in time.

Meanwhile, there are spectacular sunsets almost every day: bold, strong reds and violets slash across the sky. Sunsets in Naples, over the Gulf, are just as beautiful, but in a softer, more pastel way. They are two very different places, but both are part of this vast nation of ours.

The seismic changes in the US economy are creating a real estate boom in New Mexico as large employers relocate and establish operations in the business-friendly state. While many areas of the country are suffering, some, where housing is employment driven are doing well. One such area of prosperity is New Mexico and there are real estate bargains still available. New members can search foreclosures free with a trial membership Click here for Bargain.com.
. And if you see something of interest there is a five step process to follow:

Fannie Mae and Freddie Mac loan modification program

Posted by admin on November 12, 2008
California, Florida, Mortgages, Nevada, New Mexico / No Comments

Fannie Mae and Freddie Mac, otherwise known as the dead-beat duo, have announced that they are going to do a humongous loan modification program. The details are preliminary and we’ll give more depth in future but these are the details:

  • (1) Modify mortgages for those 90 days late
  • (2) Extend mortgages out to 40 years
  • (3) Lower mortgage payment to 38% of the borrower’s annual income
  • (4) Lower rates to as low as 3%
  • (5) Need to make 3 consecutive payments in order to be permanent

This scheme is fraught with so many problems. First, it is geared to the beyond toxic mortgage markets of the sand states California, Nevada, Arizona and Florida that account for well over $300 billion of the $500 billion Pay Option ARM market. In addition, they mention that this money will come not from the $700 billion TARP program. Which means more money from taxpayers. Although most of the problem loans come from the Sand States, it looks like many loans will not qualify for this program. Of course Sheila Bair at the FDIC wants access to TARP cash to bailout toxic mortgages. Not subprime mortgages but Alt-A yuppie mortgages on California McMansions. Now lets not get too negative but don’t you think this is going to induce certain borrowers to purposely miss three payments? There are many people on the edge who are being prudent and making their home payments but barely. Now isn’t this a large enough incentive to stop paying and get this great deal? Who wouldn’t want to sign up and put their mortgages in here! Unfortunately, for the majority of prudent mortgage holders who pay on time your only parting gift is the good feeling that you are helping Wall Street banks and lenders stay afloat for making horrible mortgages.

Mortgages still available in New Mexico

Posted by admin on November 12, 2008
Mortgages, New Mexico / No Comments

Despite all the financial bad news out there from job cuts, banks collapsing, home foreclosures and the stock market, there is some good news for those in New Mexico looking for a new home. Realtors and bankers say the dream of buying a home is still possible. The national news is impacting the sale of homes here if you compare this time of year to last year home sales are down one-third.

There are some types of home loans that have gone away recently but many other type of loans are still available, with some of the best prices available via LendingTree.com. In New Mexico they’ve stayed relatively unhurt from the major financial housing troubles seen around the country. Banks can and will do loans. The national subprime meltdown has led to the disappearance of three type of home loans and those were the riskier loans, still out there are the standard conventional loans, VA loans, FHA, New Mexico Housing, and rural development loans are still in place.

Taggart encourages people who think they can’t get a loan, to look into what your chances really are because they may be surprised to know you can be a homeowner. And there are great opportunities for first time homebuyers, because, right now, it’s a buyers market.

Some people some concerns whether or not they can get into a property, but the answer is to go talk to one of the local institutions, or one of the main stream lenders such as LendingTree.com and let them see your circumstances. Generally speaking if you have a job, if you have reasonable credit, not prefect credit, reasonable credit, and you don’t have too much debt you can get a home loan in New Mexico. So don’t worry so much there’s still plenty of money available to lend, and the interest rates are great with plenty of options for buyers. So go get yourselves a bargain.

Banks closing and a bear market – get a Vision Premier Card to protect your money

Posted by admin on November 07, 2008
Credit Cards, New Mexico / No Comments
A beautiful church in Santa Fe, NM.

A beautiful church in Santa Fe, NM.

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