Posts Tagged ‘Lenders’

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What’s happening in Orlando real estate?

July 1, 2012

What an interesting time in real estate. Homes ARE selling and I have had a great year to date. I’m grateful for that. But there is a lot of work to be done. In what direction are we moving as a nation?

The majority of homes sold are still distress sales. Homes that are NOT distressed (in foreclosure or short sale) are selling fast and furious. These homes are generally well cared for and the Seller can make a decision quickly. People are tired of waiting on banks and on being required to accept homes in shabby condition or AS IS without regard to repairs. I truly believe that buyers want to work with homes that they KNOW are well-maintained and show pride of ownership.

So who is buying distressed properties? Mostly investors with a lot of cash. Are we turning into a society of renters? Time will tell. I can tell you that there are a lot of people looking for rental homes. I probably get five to ten calls per day of someone looking for a rental house.

I am happy for the uptick in home sales but I will be happier when we see loans easier to obtain (even qualified buyers are unduly pressured during the loan process), appraisers realizing that the market is getting stronger and buyers not afraid to make decisions. WE NEED TO MOVE TOWARD A COUNTRY OF CONFIDENT CITIZENS.

I love our country as we approach this July 4th holiday and I pray that we will see our nation move in a positive direction with everyone working to the better good of our nation. May it be so.

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Real Estate Ruins –

April 21, 2011

 

Real Estate in Ruins

As I was driving through a luxurious Orlando neighborhood recently, I noticed a number of homes that were obviously in foreclosure. The signs were everywhere including the overgrown lawns, the newspapers piled in the driveway and the general look of decay.

It dawned on me that without proper love and care – the earth has a way of reclaiming what it once lost. The house was covered in vines which were starting to smother the home. It was at once appalling and then again, mesmerizing. I guess the old adage “it’s not nice to fool “Mother Nature” really can come true. You can lay down all the bricks and mortar that you need to make a mansion or a modest home but left untended, Mother Nature is going to take it back and do so with a vengeance.

So goes the state of real estate. Real estate in the US is in ruins! No one is tending the real estate market and no banks, politicians or even news anchors seem to be alarmed. Banks have just disclosed that they wrote one-third (1/3) fewer loans the first quarter of this year than in the past. That is an ASTOUNDING fact. While is sounds wonderful to have a 4.45% interest rate, it is meaningless if no bank is giving out loans. It’s catastrophic. Right now we live in a world full of smoke and mirrors. It’s all fake advertising. It’s all for naught.

Banks are getting richer and bank CEO’s are reaping huge profits but not on real estate. Our country must stand up for a call to action for loans to be written to credit-worthy customers. We are in the weeds and we are going to be in a hole so deep it will take decade(s) to recovery.

As real estate goes – so goes the economy. As an example, I had a client with a two-year old foreclosure BUT $100,000 down payment on a $200,000 house and I could NOT get him a loan. Why? Because the lenders said his foreclosure had to be past three years. 50% down is almost unheard of and yet we could not get this buyer a loan.

PLEASE, please won’t someone get serious about the condition of our economy and realize that without loans and without buyers – we have no real estate? The effect is deep and sinks to the core of all business. No real estate builders, no real estate materials (bricks, shingles, asphalt, etc.), no handymen, no appliances, no furniture…I could go on and on. The lack of sales is affecting everyone and it is affecting you whether you understand this or not.

Let’s get back to business. Let’s sell some homes. Won’t someone make a stand?

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Mortgage Modifications – Let’s help the GOOD GUYS!

March 28, 2010

 

OregonianLive.com recently reported the following:

Democrats in Congress yesterday declared that President Obama’s HAMP program designed to help people avoid foreclosure had “failed miserably.” And a government watchdog criticized HAMP for “spreading out the foreclosure crisis” over several years by failing to help enough people.
 
A year into the program, which originally aimed to aid 3 to 4 million borrowers, servicers placed only 170,000 trial modifications into permanent status.
 
Meanwhile, a federal report showed that
more than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report. The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year.

Politics aside, this does NOT come as a surprise to me. The modification of loan program is a colossal failure and will continue to be so unless the federal government and the banking industry realize that loan modifications should FIRST help those who CAN AFFORD TO PAY.

That’s right – you need to modify the loans of people whose homes are adversely affected by declining values and the current foreclosure crisis. The people who have been paying on time, paying off their mortgages and are not delinquent should be given a chance to benefit from the current economic crisis?

Why?

Because they may be the next victims of the economic tsunami if they are not given a chance to recover some of the lost value of their property. I see it…on a daily basis…the great people of our nation who are tired of the struggle and they are wondering why they don’t catch a break.

The facts don’t lie – at least 50% of the people who have received the modifications (AND THERE ARE VERY FEW FOR THE RECORD – THIS IS A DEBACLE OF EPIC PROPORTIONS) have still defaulted after modification. The current system for loan modifications is not working on so many levels. But at the end of the day, if you can’t make your payments – loan modifications are just buying you a little more time before the foreclosure gavel strikes.

Either way – our government must fix this economic crisis, restore the housing market – and get people working. But most importantly – they need to RESTORE CONSUMER CONFIDENCE to all our citizens and not just those in financial distress. When will the good guys catch a break?

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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.