A recent MSN Money article captions "Why You Might Never Own a Home". It then goes on to write about a couple that earns a little less than $100,000 a year together and how they lament "We can't afford to buy a home". Within the article there are a number of points made that suggests that potential home buyers, like the couple cited in the article, might never be able to own a home.
Reasons like "rising home ownership prices have made ownership impossible for many middle-class families" and "easy credit and the pressure to overreach during the recent housing run-up have left America with a nasty housing-bubble hangover".
While I am sure the writer of this article means well and the intent is to be informative, the article creates more confusion and misinformation about the present home buying situation than it should. There is another side of the story that needs to be told.
The other side that should be told is "Why You Might Never Have a Better Time To Own a Home" The stars for a boom in home buying are all aligned. While the naysayers are prognosticating about the doom and gloom on the housing homefront, savvy home buyers and real estate investors are a signing a Hallelujah chorus that says "happy days are here again".
The DNA of owning one's own land or home is well embedded in the American fabric. The Homestead Act, signed into law in 1862, was the first real and substantial endeavor by the federal government to create homeowership, stability and a sense of belonging . This act provided that any American or legal immigrant could have up to 65 hectares (160 acres) practically free if they just claimed it, staked it off, cleared it and worked it. Only a nominal fee was required to be paid in some instances. This stimulated the economy and helped settle a country that was suffering growing pains, dealing with a war (The Civil War in fact) and having spirited battles between political factions. Sound familiar? Well guesss what it's no different today.
The federal government has made provisions for people to in effect homestead again.
Sure it's tuff to buy in the real estate market now if you don't know how to navigate around the subprime and adjustable rate mortage mess. On the other hand low, moderate and even high income people who feel they may never own a home can do so.
There is an abundance of home buying opportunies. Down payment assistance programs funded by federal, state and local governments. Visit. http://www.hud.gov/buying/localbuying.cfm). Non-profit organizations that have billions of dollars to lend to first time home buyers and virtually guarantee you can qualify if you follow certain guidelines and a host of other options. Check out www.naca.com.
Given that sellers are so motivated to sell and the inventory of available homes so high, this makes the home buying experience even more favorable.
Do yourself a favor. If you truly want to buy a home of your own, stop listening to the news that tells you that you can't. Do some research on what's available to you in your area with housing assistance, free money for down payment and other programs that are just waiting for you to make a move.
You can also contact me. I can help you make your dreams of home owership come true.
If you have a different opinion or take on the home buying scene, I'd like to hear it. Make your comments and tell me how you feel.
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
Website: http://www.housingamericans.com
Subscribe- mail to: subscribe@housingamericans.com
Wednesday, February 13, 2008
Monday, February 11, 2008
Fanning The Flames Of The Foreclosure Fire Sale
Well it's a sad situation, but for one I am not surprised. The Foreclosure firestorm has created a wildfire that is getting out of control. Home owners who are stressed and strained with the burden of subprime mortgage debt that's just too much to handle are snapping all over the land. According to the latest reports many are resorting to torching the house rather than lose it to the bank. Detroit, Cincinnati and other major cities are experiencing an abundance of home fires suddenly.
The strange coincidence is that these home fires seem to all have one common denominator. They were all in various stages of the foreclosure process. Looks like homeowners are taking matters into their own hands and literally fanning the flames of the foreclosure housing fire sale.
Is it any wonder? I don't say it's right. Actually it's wrong, but look at the situation. Several thousand people were actually scammed when they purchased these homes in the first place. Despite what the media says, there are thousands of people who just didn't understand what they were getting into and in fact after they signed loan papers thinking they had one deal, they in fact ended up with another. The reason? The documents were changed after many of the home buyers signed the papers. They never even looked at them after the deal closed. They were just happy to have a home.
Think I'm blowing smoke. Think again. According to a recent USA Today report, the FBI opened 1,210 mortgage fraud cases in fiscal year 2007, nearly triple the number of new cases in 2003. Convictions total more than 260 in 2007. Within that article FBI financial crimes section chief Sharon Ormsby states "We expect that number to increase in 2008"
It's clear that mortgage lenders and banks are the primary culprits in this mortgage mess. Now that they are going down in flames they cry foul and want the federal government and the consuming public to bail them out. I don't think they deserve any symphathy. How about cutting the bogus mortgages in half and allowing the people to keep their homes. That seems like a reasonable solution to me.
Even then we will never recover from all the money that was stolen from the unsuspecting consumers who are caught up in this perfect fire storm.
I personally know of one young Hispanic female who was duped into signing papers to get a home and ended up with fraudulent papers being submitted in her name and on her credit, which was in the mid 700's. She works in a hotel cleaning rooms for a living. When she realized what had happened two loans had been obtained in her name and she owned two propertys. She couldn't afford to make the payments. The homes were foreclosed on, she lost her good credit, reputation and now suffers other personal and financial problems as a result of this.
Her fault? I don't think so. I looked at the papers myself and from an attorney's stand point it was clear fraud. I don't feel sorry for the banking industry.
What's your take on it?
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
Website: http://www.housingamericans.com/
Subscribe- mail to: subscribe@housingamericans.com
The strange coincidence is that these home fires seem to all have one common denominator. They were all in various stages of the foreclosure process. Looks like homeowners are taking matters into their own hands and literally fanning the flames of the foreclosure housing fire sale.
Is it any wonder? I don't say it's right. Actually it's wrong, but look at the situation. Several thousand people were actually scammed when they purchased these homes in the first place. Despite what the media says, there are thousands of people who just didn't understand what they were getting into and in fact after they signed loan papers thinking they had one deal, they in fact ended up with another. The reason? The documents were changed after many of the home buyers signed the papers. They never even looked at them after the deal closed. They were just happy to have a home.
Think I'm blowing smoke. Think again. According to a recent USA Today report, the FBI opened 1,210 mortgage fraud cases in fiscal year 2007, nearly triple the number of new cases in 2003. Convictions total more than 260 in 2007. Within that article FBI financial crimes section chief Sharon Ormsby states "We expect that number to increase in 2008"
It's clear that mortgage lenders and banks are the primary culprits in this mortgage mess. Now that they are going down in flames they cry foul and want the federal government and the consuming public to bail them out. I don't think they deserve any symphathy. How about cutting the bogus mortgages in half and allowing the people to keep their homes. That seems like a reasonable solution to me.
Even then we will never recover from all the money that was stolen from the unsuspecting consumers who are caught up in this perfect fire storm.
I personally know of one young Hispanic female who was duped into signing papers to get a home and ended up with fraudulent papers being submitted in her name and on her credit, which was in the mid 700's. She works in a hotel cleaning rooms for a living. When she realized what had happened two loans had been obtained in her name and she owned two propertys. She couldn't afford to make the payments. The homes were foreclosed on, she lost her good credit, reputation and now suffers other personal and financial problems as a result of this.
Her fault? I don't think so. I looked at the papers myself and from an attorney's stand point it was clear fraud. I don't feel sorry for the banking industry.
What's your take on it?
Roy Landers, attorney and real estate broker/investor teaches what’s working and making money in the current real estate market with FREE content from The Real Estate Playbook, the place where savvy home buyers, sellers and investors gather information to build a solid financial foundation.
Website: http://www.housingamericans.com/
Subscribe- mail to: subscribe@housingamericans.com
Saturday, February 2, 2008
A Silver Lining In The Cloudy Mortgage Mess
It's a cloudy and murky storm brewing over the once clear skies of the real estate market. Foreclosures increased more than 75% in 2007 with over 2.2 million foreclosure filings nationwide.
More home owners are feeling desparate and discouraged. Some are so angry and frustrated they have started to set fire to their homes in plots to obtain insurance money to stop foreclosure and get some monetary release. Some are abandoning homes but before they leave they leave the water running and destroy portions of the structure.
The Mayor of Baltimore has sued Wells Fargo Bank claiming they have caused big damage to minority home mortage borrowers by lending them subprime adjustable rate loans the bank knew or had reason to known they could never pay.
Is this a stormy situation or what? Yes, indeed its cloudy, but like they say there's a silver lining in every cloud. I think there is one in the real estate storm that a lot of people are missing.
Here's the weather report........
More home owners are feeling desparate and discouraged. Some are so angry and frustrated they have started to set fire to their homes in plots to obtain insurance money to stop foreclosure and get some monetary release. Some are abandoning homes but before they leave they leave the water running and destroy portions of the structure.
The Mayor of Baltimore has sued Wells Fargo Bank claiming they have caused big damage to minority home mortage borrowers by lending them subprime adjustable rate loans the bank knew or had reason to known they could never pay.
Is this a stormy situation or what? Yes, indeed its cloudy, but like they say there's a silver lining in every cloud. I think there is one in the real estate storm that a lot of people are missing.
Here's the weather report........
- Interest rates on federal funds dropped to 3% on January 30, 2008
- Mortgage interest rates are starting to fall even lower. This prompts refinancing and helps many homeowers that can still refinance troublesome adjustable rate loans into 30-40 year affordable fixed rate loans thus avoiding the likelihood of future foreclosure
- Congress is contemplating and most assuredly will increase the loan maximum for FHA insured loans from the current amount of $417,000 to some where in the $600,000 to $700,000 maximum loan range. Democrats and Republicans agree it should be raised so its just a matter of how much. Its pretty much a done deal. Stay tuned it's coming
- Home prices are down and new home sales are at a record low.
- Home sellers are very motivated and willing to assist buyers with financing.
Thats the weather report. What's it all mean......IT'S A BUYERS' MARKET. That's the silver lining. Home buyers, especially first timers, will be a huge factor in making sure the economy weathers the present storm and getting out of the mortgage mess.
The winds of change are upon us. History will repeat itself. Out of the ruins of the real estate market the proverbial Phoenix will rise.
What's your opinion?
Monday, January 28, 2008
What's Your Opinion On The Economic Stimulus Package
Well looks like Congress is getting the message and seriously getting ready to do something about the looming economic down turn. The Democrats and Republicans have found something they can agree on for once - a need for economic relief, especially in the housing market where states like California and Florida have suffered 20-30 percent declines in home values and home owners are losing their proverbial shirts.
Unfortunately what they haven't agreed on is how to provide the relief. The Democrats want to increase the loans limits available for insurance backing of FHA and HUD supported homes from a maximum of $417,000 to over $700,000. The Republicans want to have the limits raised also but somewhere in the neighborhood of $600,000. This is all part of the economic stimulus package that is being considered right now by Congress. Rest assure there will likely be an increase in the maximum amount of the home loan size for insured purposes that will be backed by the government but how much should it be?
I think it should be $700,000 or more. That way more people will be able to obtain loans that are insured by the feds and housing markets in California, Arizona etc. will be stimulated and the down slide can ultimately be stopped and the housing market stabalized. It will also provide an opportunity for more first time home buyers to have access to loans for homes that otherwise would not even be considered part of the housing inventory because of the current low loan approval amount of $417,000.
The housing industry is the main key to recovery in this current economic spin. I say increase the loan limits to the $700,000 amount or more.
What's your take on it? Talk back to me and let me hear your side of it. Get involved and talk to your representatives about this too. Now is not the time to be silent.
Give me your comments in the comments section of this blog. Have a good one.
Roy Landers -roylanders@housingamericans.com. http://www.housingamericans.com/
Unfortunately what they haven't agreed on is how to provide the relief. The Democrats want to increase the loans limits available for insurance backing of FHA and HUD supported homes from a maximum of $417,000 to over $700,000. The Republicans want to have the limits raised also but somewhere in the neighborhood of $600,000. This is all part of the economic stimulus package that is being considered right now by Congress. Rest assure there will likely be an increase in the maximum amount of the home loan size for insured purposes that will be backed by the government but how much should it be?
I think it should be $700,000 or more. That way more people will be able to obtain loans that are insured by the feds and housing markets in California, Arizona etc. will be stimulated and the down slide can ultimately be stopped and the housing market stabalized. It will also provide an opportunity for more first time home buyers to have access to loans for homes that otherwise would not even be considered part of the housing inventory because of the current low loan approval amount of $417,000.
The housing industry is the main key to recovery in this current economic spin. I say increase the loan limits to the $700,000 amount or more.
What's your take on it? Talk back to me and let me hear your side of it. Get involved and talk to your representatives about this too. Now is not the time to be silent.
Give me your comments in the comments section of this blog. Have a good one.
Roy Landers -roylanders@housingamericans.com. http://www.housingamericans.com/
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