Archive for November, 2009

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FORECLOSURES – here’s the facts

November 27, 2009

11.19.bForeclosureHomeForSaleSign

Great article from CreditLoan blog can be found at: http://www.creditloan.com/blog/4-alarming-foreclosure-facts/

It’s important to note that it is NOT subprime loans that are the problem anymore – its fixed rate borrowers who are experiencing economic collapse due to business downturn or loss of job or simply poor planning. That’s the scary part – it’s not the inexperienced and unqualified borrower anymore – it’s the average American who has been paying on their home loans for years and now finds themselves unable to keep up with their payments. They are losing their homes in record numbers.

Regardless – it’s going to be an interesting 2010.

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Happy Thanksgiving

November 27, 2009

At this time of year – I hope everyone remembers that

what is really important about our “homes” are the

people in them – that’s what make a house a home.

 

We are so lucky to have a roof over our heads, food on our tables and love in our homes. From my home to yours…HAPPY HOLIDAYS.

“The most important work you and I will ever do will be within the walls of our own homes”. Harold Lee

“My home is not a place, it is people”.  Lois Bujold

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Predicting the Future

November 11, 2009

 

I’m not a true prognosticator but I am a person who looks to the future and frankly, things are looking good to me.

When I started selling real estate, it was a “calling” for me and a service to my clients. Somewhere it became a little bit (just a tad) about awards and dollar volumes and I lost something. Not anymore.

The good thing about the new world order in the real estate market is the chance for me to again realize that helping people buy a home, especially in today’s market, is VERY rewarding on so many levels. The challenges are extraordinary but the satisfaction of helping people navigate the process is fantastic. I LOVE my job.

It’s not easy to sell real estate – but it’s still the best job in the world and you really don’t need a crystal ball to see this clearly!

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Banking Business from WSJ

November 9, 2009

From the Wall Street Journal

http://blogs.wsj.com/economics/2009/11/09/banks-choosing-treasury-bonds-over-loans/

  • November 9, 2009, 12:40 PM ET
  • Banks Choosing Treasury Bonds Over Loans

    You know an economy isn’t healthy when banks are using as much of their money to buy government debt as they are to make loans to businesses. That’s just what’s happening right now. According to the Federal Reserve’s latest weekly measure of bank assets and liabilities, released every Friday, banks held 1.37 trillion of Treasury and Fannie Mae or Freddie Mac debt securities at the end of October and $1.37 trillion of commercial and industrial loans.

    We’ve seen this movie before — in the early 1990s after the savings and loan crisis and in the early part of this decade, after the tech bust Treasury holdings exceeded business lending. What’s stark about the latest version is that business lending is falling so fast and Treasury purchases are rising so fast. At the end of October, business loans were down 17% from a year earlier, while Treasury and agency debt holdings were up 8%. Total bank loans and leases are down 8%.

    These trends are important for several reasons. First, this helps explain why yields on Treasury bonds are so low even with mammoth U.S. budget deficits. Credit-wary U.S. banks are helping to finance this deficit because they’re afraid to put their money anywhere else. They can still earn a good, low-risk return buy borrowing very cheap short-term money and parking it in higher yielding Treasury bonds. They’re not the sole factor, but they contribute. Second, this should help to allay some of the market’s concerns about inflation. It’s hard to get inflation when unemployment is so high. It is also hard to get it when banks aren’t lending money. This is one factor that is likely to keep the Fed on hold for some time.

    The central bank puts out its Senior Loan Officer Survey this afternoon, a quarterly survey on lender attitudes about extending credit. In the July survey, loan officers said decreased loan demand and deteriorating credit quality were driving the contraction in business lending. Most banks also said they expected their lending standards across all loan categories would remain tighter than average until at least the second half of 2010.

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    REprint of Banks Tighten Lending Standards

    November 9, 2009

    Banks Tighten Lending Standards

     By DARRELL A. HUGHES

    U.S. financial firms continued to tighten standards on household and business loans in the third quarter, despite receiving billions in government aid, according to a Federal Reserve survey.

    The survey, released Monday, showed that as some banks are continuing to make it difficult for consumers and companies to obtain credit–the net percentages of banks that tightened standards and terms for most loan categories continued to decline from the peaks reached late last year.

    “The exceptions were prime residential mortgages and revolving home equity lines of credit, for which there were only small changes in the net fractions of banks that had tightened standards,” the survey said.

    Additionally, a “significant net fraction” of banks tightened standards for commercial real estate loans, the October survey showed. About 35% of domestic banks reported tighter standards, a drop from the 45% that reported doing so in July.

    The report, officially called the Senior Loan Officer Opinion Survey on Bank Lending Practices, provides a window into banks’ lending practices and is reviewed for signs that the credit crunch is abating.

    Monday’s report is based on responses from 57 domestic banks and 23 U.S. branches of foreign banks. Participating firms received the survey on or after Oct. 6; responses were due Oct. 20.

    Write to Darrell A. Hughes at darrell.hughes@dowjones.com

     

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    How can you Mend a Broken Real Estate Heart?

    November 9, 2009

    I haven’t written on my blog in some time and it is not because I lack anything to say – it’s because I have too much to say and it’s not positive. I keep trying to think of what’s good about my real estate career right now and the one thing that sustains me is the fact that I’m trying, against surmounting odds, to help people navigate this real estate morass.

    On any given day, I can guarantee that I will break someone’s heart. Why? Because I am going to have to tell them the truth and the truth is that the home they bought for an investment and to provide a place of refuge for their family has now become their biggest and saddest liability. They bought into the dream of home ownership but didn’t buy into market manipulations that have destroyed a large part of their future.

    I find it intriguing that so many want to blame the consumer – but the consumer believed  in a system that was a based on greed fostered by the banking institutions who NOW profit from the consumer’s misfortune.

    How will our country repair itself? How will people regain good credit? How will lives be restored and how will hard working Americans ever believe, really believe, that they can trust the banks with their dreams?

    I don’t have the answers. Like you, I have a LOT of questions and I don’t trust anyone in the banking industry, Wall Street or the federal government to be honest.

    I believe in the future – I believe in America – I believe in the good and honestly hard-working Americans and I hope we find a way home.  I believe that someday, good will prevail. That’s why I sell real estate.