Part Five of a Five part series
Lending Institutions
(NON- living, breathing entities)
A quote that should be etched over the entrance of every lending institution and Congress!
During Times of Universal Deceit,
Telling The Truth is a Revolutionary Act - George Orwell.
Things to do before you read:
Here’s a little homework before you get too far along.
1. Research Glass-Steagall Act 1933
2. Repeal of Glass-Steagall Act 1999
3. Look up Resolution Trust Corporation (RTC) 1989
4. www.sfweekly.com/2010-09-01/news/why-obama-s-mortgage-relief-program-failed/
Now that you have a better understanding of the regulations that have been created, played with and lessons learned that are being ignored - we will proceed.
Money, ahhhh money! It can be a source of security, used to purchased ones basic needs, benefit those in need, provide items of satisfaction to the ego, but All to often it spawns GREED!
Think, Madoff, Rothstein, Ponzi anyone??!
BANKS --- These are the places we have traditionally come to for financing large purchases and to a certain extent we still can. BUT the game plan has changed.
We have gone from the mid ‘90’s and mid 2000’s basically with Lending institutions giving money away to anyone with a pulse, by pressure from Fannie Mae/Freddie Mac run by politicians that wanted not only the economy to seem bountiful but to catapult the populous mindset from a “Chicken in every pot” to “A home OWNER under every roof”!!
This ideology, lacking reality, creating an environment of Corruption, set in motion the inevitable “Bubble to BURST“.
Now, currently highly qualified people, applying for loans, having to disclose/explain why a payment three years ago incurred a late fee because you forgot to put a stamp on the envelope - and still being run through the ringer!!
The Banks are holding on to money- typically taxpayer bailout money - tighter and longer for many reasons.
The most prominent is the state of flux the world is in and the BANKERS don‘t want to be caught short. There are so many variables in play these days and I will only go into the Real Estate side.
With the quantity of Bank Owned homes and the unknown of how long they have to be kept on books , while maintaining them, paying taxes, clean-up/repair, etc. etc., when more will be stockpiled and for how long is a major factor in why banks are not letting loose of the cash. The short sales and what the loses will be, weigh on the picture and then certain gov’t regulations on modifications that are just starting to trickle out.
The second shoe should just begin starting to drop shortly too, with the commercial RE market.
Locally, we have been seeing businesses shutting their doors and having to walk away from their leases. The trickle-down effect is devastating on property owners that don’t have deep pockets. So, we go into phase two of the RE tailspin that will additionally be affecting lenders. They need to satisfy share holders/stock portfolios and all that keep the engin of our country running. With the current economic downturn, lack of business start-ups and jobs, that is the basis of the pyramid that is not being attended to.
So while the balance of not letting too many foreclosed homes drench the market while mostly investors soak up this supply, we the tax paying - Bailout supporting public, wait to see what next is in store on the horizon with the BANKS and all that controls the money supply
Saturday, April 10, 2010
Monday, March 8, 2010
Picking Your Mortgage Broker/Loan Officer
(Part four of a five part series)
You can’t beat experienced lenders/brokers! I mean the people you deal with face-to-face! Not the institutions.
Professionalism is what you are looking for here. The way they handle themselves, the words they pick, are they clear?, their presence, dress, grooming! Yes, you might say - huh! This is ALL important. If they have a sloppy appearance, demeanor - the transaction could be a rough ride.
Meet with several! Get to know this person - he/she can make or break the transaction!
The person you choose should know - DAILY - what is happening in the world of money. There is so much that drives the financial world quickly these days. They are not miracle workers, they are human. They should have back-up, a ‘team’ that you get familiar with. This person should give you the feeling of confidence and security that YOUR interests in this very important investment in your life will be professionally handled. How do they respond to questions? Can you easily understand them, the financial lingo? Are they speaking comprehendible, in shortcut speech? You should feel as though you are building a professional relationship here. Trust, confidence, knowledgeable, honesty. If you leave with anything less - keep looking! Call me, I work with several Great ones!
You can’t beat experienced lenders/brokers! I mean the people you deal with face-to-face! Not the institutions.
Professionalism is what you are looking for here. The way they handle themselves, the words they pick, are they clear?, their presence, dress, grooming! Yes, you might say - huh! This is ALL important. If they have a sloppy appearance, demeanor - the transaction could be a rough ride.
Meet with several! Get to know this person - he/she can make or break the transaction!
The person you choose should know - DAILY - what is happening in the world of money. There is so much that drives the financial world quickly these days. They are not miracle workers, they are human. They should have back-up, a ‘team’ that you get familiar with. This person should give you the feeling of confidence and security that YOUR interests in this very important investment in your life will be professionally handled. How do they respond to questions? Can you easily understand them, the financial lingo? Are they speaking comprehendible, in shortcut speech? You should feel as though you are building a professional relationship here. Trust, confidence, knowledgeable, honesty. If you leave with anything less - keep looking! Call me, I work with several Great ones!
Monday, February 15, 2010
The Property - all the types!
(Part three of a five part series)
If you are a seller, the value is dictated to a degree, these days on how financially sound YOU are (see previous post)! If you are current on your mortgage do not have financial distress, have been ‘smart’ about keeping the property maintained and updated, you should be able to get a decent price as long as you are not in a big hurry.
On the other hand if you are financially troubled, lost your job, behind in payments, (see previous post), expect to basically hand over the keys and have enough for a rental deposit.
Beyond all that, the basics still apply. Great location - it sells itself!
Shows great maintenance, fresh, pristine - it sells itself.
Well designed, color choices, décor/staging - it sells itself.
The days of sticking a sign on the front and counting on a buyers foresight of potential is gone for the time being.
I do see multiple offers but this is mostly on REO’s (Bank owned) that have been deeply discounted.
---Foreclosures, Short Sales, REO’s (Bank owned)
A key aspect of these properties is location/neighborhood - what’s going on with the rest of it!!!
The major issue I want to bring forward in this posting is to make you aware that these properties are more often than not, damaged goods. Many owners that are losing their houses don’t want anyone else to reap the benefits of a ‘cheaper’ home. I has become common for the last weeks of possession, owners destroy their houses. Sheetrock is sledge hammered, plumbing is ripped out, cement flushed down toilet, windows broken, cabinets sledged hammered -- ehh- you get the picture! If I can’t benefit from this no one will!
Then there are the hidden defects, things you don’t see. If you are pursuing Foreclosures/short sales - watch out!!
The tax liens, HOA dues and/or taxes in arrears, mechanics liens, and recorded judgments and deed restrictions that could jeopardize the value of your BARGIN! All of these things follow the property and the new owner can very easily be haunted by such for years.
REO’s are the safest of the bunch to pursue. The Lending institution provides the cleanest transaction. Taxes and HOA have been paid and you usually get a clear title. They typically hire a maintenance and repair Co. to do a basic clean-up. They will remove all the damaged members of the property board-up windows, change locks to make the property pretty secure. The new owner usually has a project to remedy for that 50%+ discount they have secured. Again, the wisest thing to do is get help from a professional, this is the biggest investment in your life!
If you are a seller, the value is dictated to a degree, these days on how financially sound YOU are (see previous post)! If you are current on your mortgage do not have financial distress, have been ‘smart’ about keeping the property maintained and updated, you should be able to get a decent price as long as you are not in a big hurry.
On the other hand if you are financially troubled, lost your job, behind in payments, (see previous post), expect to basically hand over the keys and have enough for a rental deposit.
Beyond all that, the basics still apply. Great location - it sells itself!
Shows great maintenance, fresh, pristine - it sells itself.
Well designed, color choices, décor/staging - it sells itself.
The days of sticking a sign on the front and counting on a buyers foresight of potential is gone for the time being.
I do see multiple offers but this is mostly on REO’s (Bank owned) that have been deeply discounted.
---Foreclosures, Short Sales, REO’s (Bank owned)
A key aspect of these properties is location/neighborhood - what’s going on with the rest of it!!!
The major issue I want to bring forward in this posting is to make you aware that these properties are more often than not, damaged goods. Many owners that are losing their houses don’t want anyone else to reap the benefits of a ‘cheaper’ home. I has become common for the last weeks of possession, owners destroy their houses. Sheetrock is sledge hammered, plumbing is ripped out, cement flushed down toilet, windows broken, cabinets sledged hammered -- ehh- you get the picture! If I can’t benefit from this no one will!
Then there are the hidden defects, things you don’t see. If you are pursuing Foreclosures/short sales - watch out!!
The tax liens, HOA dues and/or taxes in arrears, mechanics liens, and recorded judgments and deed restrictions that could jeopardize the value of your BARGIN! All of these things follow the property and the new owner can very easily be haunted by such for years.
REO’s are the safest of the bunch to pursue. The Lending institution provides the cleanest transaction. Taxes and HOA have been paid and you usually get a clear title. They typically hire a maintenance and repair Co. to do a basic clean-up. They will remove all the damaged members of the property board-up windows, change locks to make the property pretty secure. The new owner usually has a project to remedy for that 50%+ discount they have secured. Again, the wisest thing to do is get help from a professional, this is the biggest investment in your life!
Thursday, February 4, 2010
The Sellers (part two of a 5 part series)
There are the two basic categories -
Non-distressed and DISTRESSED
It makes a BIG difference which one you are in.
If you are clinging on by your fingernails to put food on the table and keep a roof over your head, there are those that can sniff you out and go for the jugular. Usually when that Notice of Default is filed, this is a clear sign.
I have seen how quickly word gets out when someone is down and the sharks begin to circle. By the way - this is a DISTRESSED SELLER.
For you just regular, keeping it together, sellers take heed.
This is the real world and unless you have a ‘Golden Goose’ in the backyard, you should act quickly, price your home competitively and pray! It is a wild ride right now in what determines which property sells and which one sits. Be smart, stage it, and mentally
move out!
There are factors out of your control and with more and more foreclosed homes due to come on the market, the banks making it very hard for the qualified borrower to get that loan, you will have to have a mountain of patience and a Real Estate Broker that is experienced and connected to many excellent resources. Hmmm … who could that be?
I don’t mean to make light of this situation BUT … until the tide turns having a concise plan of action laid out is the all important first step.
To get there, a pointed consultation with an Experience Real Estate Profession will make all the difference!!
(to be continued ….)
Non-distressed and DISTRESSED
It makes a BIG difference which one you are in.
If you are clinging on by your fingernails to put food on the table and keep a roof over your head, there are those that can sniff you out and go for the jugular. Usually when that Notice of Default is filed, this is a clear sign.
I have seen how quickly word gets out when someone is down and the sharks begin to circle. By the way - this is a DISTRESSED SELLER.
For you just regular, keeping it together, sellers take heed.
This is the real world and unless you have a ‘Golden Goose’ in the backyard, you should act quickly, price your home competitively and pray! It is a wild ride right now in what determines which property sells and which one sits. Be smart, stage it, and mentally
move out!
There are factors out of your control and with more and more foreclosed homes due to come on the market, the banks making it very hard for the qualified borrower to get that loan, you will have to have a mountain of patience and a Real Estate Broker that is experienced and connected to many excellent resources. Hmmm … who could that be?
I don’t mean to make light of this situation BUT … until the tide turns having a concise plan of action laid out is the all important first step.
To get there, a pointed consultation with an Experience Real Estate Profession will make all the difference!!
(to be continued ….)
Saturday, January 30, 2010
How's the Real Estate Market??
The Real Estate World --- Is a multi-headed Serpent
Five part series
The question “How’s the Real Estate Market?”
has no simple way of describing all the factors that contribute to the volatility for this segment of our economy. From Banking, its regulations and lack thereof, politics, lobbyists, developers, local planning dept’s., and on and on. Only addressing the areas that are directly related, I will give it a go though!
We will start with the . . .
Investors/buyers.
This ranges from the single individual with mega cash to invest hence no credit score issues, to the two income couple with three children struggling to get into their first home on a hope and a prayer.
Where you are in this spectrum, determines the ease in accomplishing your goal and which directions you can take.
If you are in the “Cash Flush” Investor category, you can literally track foreclosures, show up on the courthouse steps and plunk down the cash on all kinds of bargains, I have watched, it is - stunning! The great deals are out there and are being snapped up. This is how the bulk of the sales of existing homes is happening now and with the ‘flipping regulation’ just having been removed, it is an investors game right now.
But if you are like the rest of us, the all important credit score dictates the next steps - which I will go into as we proceed. Hence many twists and turns.
The most important thing to learn is ‘Cash is King’. Even though you prove to the banks you are an excellent candidate for a loan, right now the purse strings are very tight even though they have been loaned ‘our money’! We could go around all day about the why’s of this but my sincere opinion is further trouble ahead with what is be designed in Washington and the ‘Banks’ don’t want to be the ones at the table that can’t find a chair when the music stops.
The BEST thing you can do is work with an experienced reputable Real Estate Broker and Mortgage Broker! Ones that have been through many of the historic cycles and are up-to-speed on the “latest” with what entities are offering the BEST package and the latest regulations being issues by the Administration. This is changing at a rapid pace and keeps those not professionals in the business, ‘off balance’
and causes unnecessary complications for professionals -
is this the ‘Change’ we were Hoping for??
(to be continued)
Five part series
The question “How’s the Real Estate Market?”
has no simple way of describing all the factors that contribute to the volatility for this segment of our economy. From Banking, its regulations and lack thereof, politics, lobbyists, developers, local planning dept’s., and on and on. Only addressing the areas that are directly related, I will give it a go though!
We will start with the . . .
Investors/buyers.
This ranges from the single individual with mega cash to invest hence no credit score issues, to the two income couple with three children struggling to get into their first home on a hope and a prayer.
Where you are in this spectrum, determines the ease in accomplishing your goal and which directions you can take.
If you are in the “Cash Flush” Investor category, you can literally track foreclosures, show up on the courthouse steps and plunk down the cash on all kinds of bargains, I have watched, it is - stunning! The great deals are out there and are being snapped up. This is how the bulk of the sales of existing homes is happening now and with the ‘flipping regulation’ just having been removed, it is an investors game right now.
But if you are like the rest of us, the all important credit score dictates the next steps - which I will go into as we proceed. Hence many twists and turns.
The most important thing to learn is ‘Cash is King’. Even though you prove to the banks you are an excellent candidate for a loan, right now the purse strings are very tight even though they have been loaned ‘our money’! We could go around all day about the why’s of this but my sincere opinion is further trouble ahead with what is be designed in Washington and the ‘Banks’ don’t want to be the ones at the table that can’t find a chair when the music stops.
The BEST thing you can do is work with an experienced reputable Real Estate Broker and Mortgage Broker! Ones that have been through many of the historic cycles and are up-to-speed on the “latest” with what entities are offering the BEST package and the latest regulations being issues by the Administration. This is changing at a rapid pace and keeps those not professionals in the business, ‘off balance’
and causes unnecessary complications for professionals -
is this the ‘Change’ we were Hoping for??
(to be continued)
Thursday, January 21, 2010
Anti-Flipping rule temporarily on hold
In case you hadn't seen it anywhere else on my sites, this is a real boon to investors.
The Federal Housing Administration will place a one-year moratorium on its anti-flipping rule, which will allow buyers with FHA-backed loans to purchase homes that have been held for less than 90 days. This could be temporary according to HUD, but hopefully when inventory appears we can help our clients have a better opportunity to purchase. The waiver will go into effect on February 1, 2010.
For more info http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/01/19/BUR51BKBUO.DTL
The Federal Housing Administration will place a one-year moratorium on its anti-flipping rule, which will allow buyers with FHA-backed loans to purchase homes that have been held for less than 90 days. This could be temporary according to HUD, but hopefully when inventory appears we can help our clients have a better opportunity to purchase. The waiver will go into effect on February 1, 2010.
For more info http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/01/19/BUR51BKBUO.DTL
Wednesday, January 20, 2010
Charmed for Lunch in Capitola
http://www.bloomsburytearoom.com/
The Bloomsbury Tea Room
Well worth the investigation! Great food,service and ambiance!
After a couple attempts to try this little gem we succeeded. Even though a couple of trees were down and we sauntered through our rare rain storms.
The charming decor, the charming wait staff and owner and the food was delicate, delicious and perfect for an afternoon of dallying around.
I have always loved Capitola, lived here, worked here and now relish finds like this that keep it on my constant path.
This is locally owned, staffed and all components are fresh made.
You won't be disappointed - You Will Be Charmed!
The Bloomsbury Tea Room
Well worth the investigation! Great food,service and ambiance!
After a couple attempts to try this little gem we succeeded. Even though a couple of trees were down and we sauntered through our rare rain storms.
The charming decor, the charming wait staff and owner and the food was delicate, delicious and perfect for an afternoon of dallying around.
I have always loved Capitola, lived here, worked here and now relish finds like this that keep it on my constant path.
This is locally owned, staffed and all components are fresh made.
You won't be disappointed - You Will Be Charmed!
Subscribe to:
Posts (Atom)