Todd Pianin discusses the Top Misconceptions in Real Estate

Are Your Buyers Frustrated?

Happy Thanksgiving.. what are you thankful for this year?

Recent short sale…. perfect pay history

Todd Pianin on Fox 5 San Diego

Samuel Scott Financial Group and Windermere Exclusive Properties have created a new entity to serve you…

Windermere Exclusive Properties is constantly looking for better ways to help support your business.

In order to assist you and your client’s mortgage needs we have re-tooled our affiliated mortgage relationship. In addition to the mortgage help you have been receiving from Countywide Mortgage and their loan officers, we have added a new group into the mix; the Samuel Scott Financial Group and we have created a new entity to serve you, RPM Mortgage.
Robert and Robin Behic, owners of Countywide Mortgage will continue to provide you with the same ongoing service they have been providing to you over the last 8 years.

Todd Pianin, President of Samuel Scott Financial Group and Brian Reynolds, Executive Vice President, of Samuel Scott Financial Group, will run the Samuel Scott Division. Todd Pianin, Brian Reynolds and their team put their clients first, build lasting relationships, and provide home loans with unparalleled service, integrity, and teamwork.

RPM Mortgage Inc.

Windermere Exclusive Properties and RPM Mortgage

looks forward to providing the expertise, service and support to build long lasting relationships with you and each one of your clients.

Mark, Jim and Steve
is a privately held family owned mortgage bank and brokerage, which has been in business since 1985. RPM, a leading provider of mortgage services for individuals seeking a residential mortgage, has the opportunity to work with over 100 lenders, close loans very quickly and maintain more control over the transaction. RPM can offer their customers the choice of a broker, while delivering the control and turn times you have come to rely on with direct Fannie Mae, Freddie Mac, FHA and VA lending. For those clients that are interested, we also have several outlets for Private Mortgage Banking.

 

 

Homebuyer Tax Credit Extended Until May 1st, 2010

The House voted to extend the tax credit for homebuyers and today President Obama signed this bill!

 First time homebuyers have been receiving tax credits up to $8,000 since January but the program was scheduled to expire at the end of November.  Not only did the House vote to extend this program to the spring but they expanded it to many people who already own homes.

How do you qualify?

• If you have owned your current home for at least 5 years would be eligible for tax credits up to $6,500 (subject to income credits)
• First time homebuyers or someone who has not owned a home in the past 3 years, could receive up to $8,000.
• Buyers have to sign purchase agreements before May 1, 2010 and close before July 1, 2010.
• The tax credit is available for the purchase of principal homes costing $800,000 or less.  
• Vacation homes are ineligible. 
• The credit is phased out for those with an income greater than $125,000 and for joint filers with incomes greater than $225,000.

  We are always available and here to answer any questions that you may have.

Call us today if you or a loved one are interested in purchasing a home.   

 You can reach Todd Pianin directly in the office at 858-259-4014 or you can reach Mark Robertson directly in the office at 858-793-4904.

    We a team of mortgage professionals who put clients first, build lasting relationships, provide home loans with unparalleled service, integrity, and team work.

Immediate Press Release – Samuel Scott Financial Group Voted Best Mortgage Loan Company

For the fourth consecutive year, RPM Mortgage’s San Diego branch, Samuel Scott Financial Group, was voted the “Best Mortgage Loan Company” by readers of the San Diego Ranch Coast Newspaper Group.  This news group includes the Carmel Valley New, Ranch Santa Fe Review and the Del Mar Village Voice.

Todd Pianin, Branch Manager of the Samuel Scott Financial Group, was grateful to receive this award for the fourth year in a row and was pleased to know that the people of San Diego consider them the best mortgage company.  He was also pleased to know that people voted Samuel Scott the best mortgage company over larger competitors such as Wells Fargo which came in second place, and Coldwell Banker which took third.

“We are humbled to be voted the number one Mortgage Company in San Diego for the fourth time in a row,” said Pianin.  “All of us at Samuel Scott Financial Group appreciate the support we have recieved from our community and peers.”

Rob Hirt, CEO of RPM Mortgage, Inc. was very pleased to hear that Samuel Scott had been voted the “Best Mortgage Loan Company” by the San Diego community and that this marks the fourth branch this year to be given a readers choice award.

“The work ethic and dedication of Samuel Scott makes the rest of the RPM family extremely proud of our association with them,” said Hirt.  “For them to be awarded this honor for the fourth year in a row really shows their diligence and desire to serve the San Diego Community.”

RPM Mortgage, Inc. is based in Walnut Creek and is a private family-owned mortgage bank and broker whose roots in the Bay Area stem back to 1986.  RPM has 40 branches in California, Nevada and Texas and over 600 loan agents and employees.  RPM’s loan agents are specially trained to offer FHA, VA, CalFHA, CalPERS and CalSTRS loan programs to their customers.  They work with borrowers, CPA’s, financial planners, attorneys and financial consultants to provide home buyers with the best financial solutions in the market today.

RPM Mortgage, Inc. is an approved direct lender with FHA, VA, Bank of America, Chase, Wells Fargo, GMAC and other major U.S. Lenders.

    

Equal Housing Lender, CA Dept. of Real Estate PM Mortgage branch license # 01818035

Short Sale, Foreclosure, Deed in Lieu. How do these affect my credit? Can I refinance on the new 125% refinance program?

I’ve been getting a ton of emails and phone calls since I have written my BLOG about how this will affect my credit. First, let me explain what all these are.

 A short sale is you selling your house and the bank taking a loss on the sale.  The pit falls that you have to worry about in this situation is having a good real estate agent who knows how to negotiate a short sale with the bank.  Also, when you negotiate with the bank, the big banks have been throwing in language to keep you on the hook for the loss. This is a little trick that the big banks are not telling you about. If you need a good referral for a talented realtor, shoot me an email or call me.

Foreclosure basically means that you have not been making your mortgage payments for sometime and the bank is using legal action to obtain their assets back.  The process goes like this: The bank sends you letters letting you know that you are late on your payments and if you don’t bring it current they will file legal action to get the property.  After this they file a 90 day notice if you don’t bring it current they will start the foreclosure preceding.  Then, after that they put in for a date of foreclosure, the whole process begins.  At the end, the bank owns the house.  

Deed in Lieu basically means instead of going through either of the above you just give the keys back to the bank and move out.

So now the next big question is how does this all affect my credit and when can I buy again? Any of the above basically affects your credit the same way.  Fannie Mae guidelines state that at least two years needs to pass before you will be eligible for a new mortgage loan. Here is the rub, these are old guidelines and they may change with the state of the economy.  On top of that, there are not many banks left who are holding the paper and would say getting burned by any of the above.  So what does this mean for you the consumer?  Less choices means rules can change and not for the better. Remember last weeks joke about how come only one company sales the game monopoly?

Now let’s chat about the new 125% refinance program.  Well, this is a big idea and the problem is getting lenders to bite off on this. Now, Fannie Mae is putting some very large strings attached to this program.  One of the major strings is if the person being refinanced into the program makes their payments late anytime for the first four payments the lender has to buy the loan back. You might think this is okay but it is not.  Most people who are going through the modification process are defaulting again within the first 60 days. We shall see how this program rolls out and when it does, we will have the product for you. The idea behind the 125% refinance for qualified people is to stop this flood of loan modification companies out there as well and help the banks get a handle on modifying the loans.

We are doing loans at Samuel Scott Financial Group and we just won the readers choice for the number one mortgage company in San Diego. Anyone you know that is refinancing or purchasing a home please, send them our way.  We would love the chance to earn their business. Until next week, keep those questions and comments coming.

Remember, we are here for you.  Mark and I have our cell phones on in the evenings and on the weekends.  Call us any time, Todd Pianin 858-775-8958 and Mark Robertson 858-401-9353.  We can’t wait to work with you!

Has the old way of doing business with your realtor and lender gone away?

My quick answer to this question is, “Yes, it is changing.”  I think the big banks are trying to limit your choices and push you into situations that are best for their corporations.  I heard a joke the other day and it goes something like this, “Why does just one company make the game monopoly?”  I think that is a good example of what is trying to be done to the consumer, limit their choices.

It is a sad day when I used to get over 300 rate sheets from big companies such as Washington Mutual, Downey Savings and Loan, Citibank and Thornburg just to name a few.  I don’t receive them anymore.  Do you no why they are out of business?  The big institutions have been fighting to do away with the people who they felt were getting paid too much money to deliver loans to them.  

I remember a meeting I was in, when I was apart of Coldwell Banker and the head guy there said ”Henry Silverman thought realtors and mortgage brokers were paid too much and he was going to do whatever he could to end this.”  I ask you a question, why does a man with top position get to make that decision?

We, the people, created the market where we want to befriend our realtor.  We ask them for advice on how the kitchen looks and what changes we can make.  We like having an advocate to win our battle, against buyers and sellers and to get us a fair price on our new home.  Then, we want to go to our friendly banker’s office and have loan options.  We want that person to be knowledgeable and explain different financing options based on the information we give them.  We will be asked, how long are you planning on being in this house. Our response could be five years or until my kids go away to school and then we want to sell.  The mortgage broker or banker would then come up with a list of options for the client, including payments, timeframe and affordability to get us into the house.

Today, the big banks only want to sell a 30 year fixed.  Why, because of higher interest rates.  While you are in the home they can make more money.  They say things like, “this is the loan your grandparents have.”   I ask you this, “Are you still watching tv on your Grandparents tv?”  I don’t think so.  Banks are hording cash and want to show Wall Street they got it the right way, by taking away your choices.

There is a rash of companies coming into the market where half of the commission on a sale goes back to the buyer or seller.  What happens after six months of you living in this house and you find a foundation crack or the neighbor next door has a dog that won’t stop barking?  Who are you going to call for help, the discount company?  Do you think they can handle it? Do they have the resources and the relationships to help solve your problem?  Have you ever gotten into a car with a realtor, who you just spoke with on the phone the week or night before and they started showing you property and you did not like anything they showed you?  What does the realtor do next?  They get you back on the horse and find you the house of your dreams!  They hold your hand through the process and are with you the day you get your keys.  I think the market is changing and it is changing for better.  Realtors and lenders actually care about their clients and are not looking at them as a quick sale.  

When you are buying or selling a home, we can easily turn it into a transaction when we know it is not.  This is where your kids are going to grow up, and where your friends and family are going to visit. This is your home.  On your worst days you can’t wait to get there and on your best you want to enjoy the comfort of your home.  I think we are changing.  I think, as in any cycle, things go from one extreme to the next.  The consumer has to decide what type of relationship they are looking for but remember, in most purchases of this size, there are two opinions.  Perhaps husband and wife or child and parent and when choosing a company to work with, everyone should be on the same page.

There are the big antiquated real estate companies that have everything.  Their own lender, usually a big bank, their own Title Company, Escrow Company and they want you to use them all.  Are you asking your self why?  It’s not for your benefit but because they need to make money on everything.  They need to pay their employees less to do more transactions.  

 There are boutique real estate and mortgage companies where the client’s needs and wants come first.  If you choose to use their services, great, if you choose not to, that’s okay too.  If you choose to buy one of their listings great, if you decide not to, that’s okay too.  Why do they have this attitude, because they want to earn your business not expect it.  They want you to refer your friends and family to their realtors.  They want you to refer the lender who got you into your home, the lender who showed up on moving day with pizza and smiles to welcome you home.  

This is why I chose to open Samuel Scott Financial Group.  We believe in not making just one transaction with you but making all of them with you.  As your life changes, we want to be there to support you when purchasing a bigger home, the possibility of relocating or when your thinking of downsizing.  We have mortgages that meet all these needs and we have aligned ourselves with realtors who share our same mantra.  You can always get a discount and work with another company, but why?  Do you really think it makes a difference to the big bank or the real estate company that they did your deal?   At Samuel Scott it does.  The client always comes first!  I treat my clients the way I want to be treated and I think that says enough. I ask this every time I end my blog but this time I am going to ask it differently.  If you had a good experience with Samuel Scott, please share it with us.  If you have had a bad experience with Samuel Scott, please share it with us as well.  If you have had a good experience or a bad experience at one of the big banks please share them with us.  If you have real estate experiences that you would like to share with us that would be great too!  

Remember, we are here for you.  Mark and I have our cell phones on in the evenings and on the weekends.  Call us any time, Todd Pianin 858-775-8958 and Mark Robertson 858-401-9353.  We can’t wait to work with you!

Is the recession over?

It has been a while since I have blogged and I am sorry.   A lot of things have happened over the past several weeks and I think it is time to bring everyone up to date.

There are so many people saying the recession is over.  Last week, I had a financial advisor say to me, “this is going to be the biggest head fake we have ever seen” and I have to agree with him.

We are still in for some trouble and allow me to tell you why. We have all seen what the sub prime mess created.  What about the super jumbo loans?  It is next to impossible to get financing for a self employed borrower. What does this mean to you?   The remaining big banks have a ton of this on their books in short term arms, which are about to adjust.  Their values have come way down and have no hope of refinancing.  The big banks are about to have trouble again and nobody is talking about it.  Think about this, if they needed money from the government for the conforming subprime mess, how much money are they going to need for those million dollar plus mortgages they are about to be stuck with? Talk to your friends who are in commercial space, that isn’t even being discussed. Unemployment is not going down but going up.  Everybody is talking about green chutes. Where are these chutes going to be when all this hits? What is the solution? We need more products for the self employed. We need help Mr. President. In the past, the first time home buyer market was used to stimulate the second time and move up buyer. Those buyers are now renting because those homes are going into short sales or foreclosures. We need some programs! Mark my words, in six to twelve months from now, we will remember this blog and I called it.

I am confident that we, Samuel Scott Finacial Group, Mark Robertson and I will have programs to solve this.  We still have stated programs and solutions for you.  Before this goes from bad to worse, you should be calling us. We will be ahead of the game when these programs start coming back. We are the leaders, not the followers.  I love these guys who are working for the big banks, thinking that they are riding high on conforming and all they are doing is cleaning up the mess they created. It’s funny how the world keeps spinning.

Call us at Samuel Scott Financial Group, 858-259-6070 or email me , with any questions you may have. Mark and I are here to help you.

105% Loan to Value… Can I really refinance?

Yes you can. The new Obama Plan has rolled out and lenders have begun pricing them.

What does this mean? It means, if your home is worth 105% of your loan amount and you are under the 2009 conforming loan limits and Fannie Mae or Freddie Mac is servicing your loan, you can refinance at market rates.

How does the program work? The same way it worked when you bought your house. You still have to qualify and if you have mortgage insurance it stays on there. You will have to provide full income documentation, just like a normal loan, it will be underwritten, etc. and wham, there you are. What could not be done before is now being done. A new loan for you with lower payments and that is that.

How do you know if you qualify for this magic program? You need to call us at Samuel Scott and we can check for you very easily and quickly. This is something that you need to do right away, while interest rates are at an all time low. I even suggest you talk to your friends and family about this program. It is real and we can help, trust me.

Modifications, should you use a modification company? Well, let me answer that for you. My short answer is, No. The reason is that these lenders are set up to help you modify your mortgage. So, why would you need someone to do something you can do yourself? Oh yeah, they tell you, “I know someone at your bank who can expedite the process.” Everybody knows somebody. Have you ever got a letter that says “I have clients relocating from Chicago and they need a house? Have you ever got an email from someone in Nigeria asking you to send them your account information so they can send millions of dollars to your bank account? There is your answer. Call me and I can help you understand what you need to do before you shell out any money.

Now, let’s talk about the elephant in the room. A lot of you have been asking me if I was so down on the big banks, how come their numbers that they have been posting are out of this world and the stock market is going crazy? First, let me ask you a question, “Didn’t all these big banks get a bunch of money from us, the tax payers?” Are these big banks lending? Where did all this mysterious revenue come from? Oh wait, TARP money. So, now what happens next quarter if banks are lending, they should make money again. Let me ask you, do you think they are lending?

The other elephant in the room is the Jumbo- A paper that Barack Obama does not seem to think is a problem because he is helping 95% of Americans. Those loans are all about to reset and who do you think owns those loans? That’s right, Bank of America/ Countrywide, Wells Fargo and Chase/ Wamu. What is going to happen when those homeowners realize their short term interest only is resetting to a fully amortizing loan, not on a 30 year cycle but on a 27, 25, 23 or 20 depending on what type of loan they took out. These people, you know who you are, all put as little down as possible on these purchases and now when they find out their values have one down, they’re going to be stuck.

How would you like to wake up to your mortgage payment going up by 1/3 and the value of your home is upside down? This is going to be a real problem pretty quickly and nobody is talking about it. Everyone thinks we are doing better but what happens when these loans start going bad and your neighbors house is in foreclosure. Let me tell you what will happen. Our big banks will get more money again, from us tax payers, to shore up their balance sheets that won’t lend and they will show great earnings all over again. Or perhaps we learned from last time. We won’t give them more money, we will let them figure it out and we may lose a bank or two that is called Capitalism.

At Samuel Scott, we are not a big bank, we have never taken TARP money and we are growing. Why, you ask. Because we have muscled are way through the last two years in the mortgage business and we believe that we should do what is right for our employees and clients. So now, I am going to give you another challenge. If you are not working with us, who are you working with and why have you not told them to come and work for Samuel Scott? That is right, I am looking for more loan agents to come and work at the best company in San Diego. Send your loan officer my way. Who cares if they work for a bank or another mortgage company, they would be foolish in this market not to talk with us. So I am asking you to send me loan officer referrals.

Mark and I are available to you 7 days a week on our cell phones or at the office. Mark can be reached on cell at 858-401-9353 or directly in the office at 858-793-4904. Todd can be reached on cell at 858-775-8958 and directly in the office at 858-259-4014. We look forward to any and all business you can send our way. We promise to always do the right thing for you and your clients because clients always come first.

Where O where have the Jumbo loans gone?

This is a question the Obama administration, Barney Frank and Tim Geitner should be asking themselves, before the next shoe drops! In the past, it was as easy to get a Jumbo loan as it was to get a conforming loan. Now, there are fewer lenders doing these loans and the process is ten times as difficult. The pricing on these loans is so far out of whack that it is unfair to the consumer. This is the stuff that the big banks are selling.
It is amazing to me how the whole market is being controlled by these big banks and what they want to do. The market should be controlled by the people and the consumers. If we leave things status quo, which we have been doing, don’t call and complain when the values of your million dollar homes continue to fall. This is the reason the big banks are choking the Jumbo market and making it difficult for people to refinance or even buy.
Now, with the start of HVCC, the log jam and depreciation is on its way and faster in the higher end if we don’t do something now. What can be done you ask? Complain to your administration or congressman. Tell them that they need to get their eye back on the ball. This can be solved if we attack it head on. How can this be accomplished by freeing up money to be lent in this market place? There should be some kind of FHA program for the Jumbo market place. If this does not happen, mark my words, this could be the next shoe to drop.
Fortunately, for Samuel Scott we have searched out relationships in the Jumbo marketplace to continue to offer programs to our clients. The downside is that, with little competition, these lenders take their time and cherry pick the files they want. Back in the day, we could close these loans in a week. Now, it takes 30 days just to get an approval and clients become angry and frustrated because they are used to the past. Again, I suggest letting your administration know that you have a voice. We should get this changed.
The stock market also rebounded this week based on words from Ken Lewis. Bank of America and Citibank are both saying they are profitable. Mark my words, this is going to come back and haunt these two banks. They are very nervous about becoming nationalized and they have to say something to keep the wolves at bay. Go back in time and re-read the testimony from George Bush, Barney Frank and Bernie Madoff. These people have all mislead us to serve their own agenda. This is the same speech, different day. Again, speak up to make a change. Don’t go to these big banks for anything, not your mortgage, car loan or savings account. This will teach them to tell the truth and do the right thing.
Break the cycle and give Samuel Scott Financial Group a try. I am sure you will very happy. Mark and I are always available to you, your family and friends, 858 259-6070

Are the lenders and banks continuing the downward spiral of our credit collapse?

First, I can’t tell you how many phone calls I am getting about credit companies reducing people’s limits to where their balance is at. Second, trust deed lenders reducing or cancelling people’s lines of credit. There are the non-stop commercials on loan modifications, CNN running daily emergency town halls about the mounting recession, interviewing people at food banks telling their stories and companies constantly laying people off. The stock market continues to go down when everything our parents taught us about investing is going out the window.

We voted for a leader who has come out with a few big ideas and no real substance. We are having our Treasury Secretary go before the knuckleheads who created this mess to get confirmed. The Treasury Secretary, who everyone says is brilliant, can’t put a team together because nobody wants to go in front of our Congress to get confirmed. It is like, why would you want to get grilled by the same person who started this whole mess to begin with. We keep hoping for answers, we keep looking for the silver lining. My comment is, quit looking and start creating your own linings. We are in this mess but we cannot allow it to over power us. Remember everything that goes down always comes back up. It just may not be as quick as we all want or need. How long did it take you to gain that weight? Every year you say you are going to take off and when you try it takes forever to lose it.

Why can’t the economy take a little time to readjust? This does not mean be paralyzed in purchasing a home or be paralyzed in refinancing your home. This means, take the bull by the horns and take advantage of the market. Ask your grandparents, how many millionaires came out of the great depression. Ask any realtor, how much did it cost to buy a home in 1980 in the neighborhood you want to purchase in? Are values there? No. Of course not, because Homes and real estate goes up. It may never be like it was, but then, how many people made money trading in one day. Remember when you could buy Google on the IPO and get rich? Guess what, real estate has been a way to build wealth, not a get rich quick scam.

My buddy, back in Philly has a system on what he buys a property for and how much he should get in rent for it to make sense. Maybe, now is the time to start thinking like that. I can’t tell you how many of my wealthy clients see this as a buying opportunity, why aren’t you? I can tell you why, because you are used to buy it three months later you have made 30 percent. Smart money knows it does not work like that. So stop thinking it does. You buy, hold, pay off the debt and then buy some more. Think about this for a minute. You have a job, you get paid for your job if you are still employed everyday, you go to work, get a paycheck, maybe a year goes by and you get a raise. Buying real estate is the same way.  Years go by, you pay down the note and either you move up and buy another home or you sell it and buy more rental property. Remember, your house is not like a credit card. You should not keep pulling money out of it to pay bills. It is a means to an end. Quit watching late night infomercials, those guys got you into that way of thinking and now those same guys are telling you how to get rich in a down market. If those guys are so smart, why are the selling you something and not getting rich on their own idea?

Next problem, those of you who think you are still going to get something for nothing. You know who you are. You want a 0 point 0 fee refinance. Guess what, those days are long gone. That’s why were in this mess. Don you remember when your grandparents would say,” if is to too good to be true, it probably is.” So ask yourselves, why are we in this mess? It’s okay to pay points and fees. Do you think that people were not making money on you doing that type of program? Of course they were. But now they’re on TV selling you loan modifications or working at one of the big banks that us tax payers own. So when you call your big bank and get a quote from a person who is selling you what they are told to sell and they offer you a no point no fee deal, remember, this is why we will continue to stay in this mess.

This is not what we do at Samuel Scott Financial Group. No Tarp money, completely independent. Mark and I want to be your lender for life. We guarantee the person you called at your big bank, you will never talk to again. They will probably be working for another branch of the government next time you need a loan. The question is real simple, am I putting out. 

So the challenge I’m putting out to you is the next time you or a friend needs a loan, how about referring Mark and I. We are both available 7 days a week until 11 o’clock every night. I bet your big bank guy isn’t. Call us or have your family member of a friend refer us. 858-259-6070.

Dear President Obama, My friends and I are wondering how the Stimulus Act and Housing Bill will affect us.

When I look at the Stimulus Act, I ask myself, “What does it do for the middle and upper middle class?

The tax credit for homebuyers has been taken out, unless you are a first time homebuyer. If I ask any realtor, “What market is moving?” They would say, the first time homebuyer market, especially with the benefits that FHA can offer. Help me understand this correctly, we are giving a credit to a group of people to purchase property that is already selling. Is this to stimulate more sales? I know realtors who are doing more business in this market then ever, so I don’t think that is the reason. This must have been a miscommunication to the President.

When I spoke with realtors about the $15,000 tax credit towards buying a house this year, they started up their engines. This tax credit was supposed to be offered to anyone who bought a home, but it was slashed out of the bill.

The next piece of news is the raising of Conforming and FHA loan limits back up to where they were last year. This was put back into the bill.  Has it happened yet? No. When do I think it will happen?  Some time in April.  How are the lenders reacting to this fine news? I have heard several lenders state, “We will take our time to put this into effect and we will not price these loans aggressively.” This is another example of something good that may not turn into something good.  I do know that this will help low down payment buyers in the FHA world get into a new home in some of the higher priced neighborhoods or condominiums, provided the pricing is any good.

The Stimulus Act is helping to build roads next year. I’m not sure what that does for California. The Stimulus Act gives money to states to help pay for law enforcement. I like that, more police is always a good thing, especially during economic uncertainty. The Stimulus Act will help send kids to college, provided you don’t make too much money to qualify for that program. I hope that helps, but it looks like those of you who are already sending your kids to college will not qualify for this program. Part of the Stimulus Act helps the unions. I don’t see how that will affect us, except by protecting some jobs in the entertainment industry and those well needed jobs in the American Auto industry. Those unions got it right.

If you read through the entire Stimulus Act, it really is a “Thank You” from President Obama to all the people who helped him get elected. It’s like giving Hilary Clinton the Secretary of State position.

Now that the Non-Stimulus, thank you for getting me elected, Act is behind us, let’s get down to business on the Housing Recovery Bill. There has to be some juice in there to get the real estate market moving and off to recovery. I have good news for well qualified, responsible homeowners who paid there bills on time but are now upside down in your mortgage. I think we are going to be able to refinance you if you put 20% down on the purchase of your home and now you are underwater, meaning that you owe more then your house is worth. This happens to me every time I lease a car. We can refinance you without an appraisal, at a great interest rate, not to be lower then 5.125% and you cannot be underwater more then 105%.

Let’s do the math, shall we. I bought a home for $100,000 (unrealistic in California but maybe, not for much longer). I put down 20%, $20,000, I owe $80,000 and I have been responsible about paying my mortgage on time. I can refinance, provided my value has not dropped more then 25% from when I bought it. The Case Schiller index shows that the average home price drop in the United States is about 35-40% nationwide. President Obama, I think you missed the mark again. On top of that, if I can rent a house in my neighborhood, for the same price as what I am paying for the mortgage that I have no equity in, why stay? Didn’t you payoff or take over debt for all the banks and some insurance companies? I guess paying down our mortgages so we have some equity and want to stay in our homes, is only on the table for mismanaged companies, not for responsible homeowners. Also, this program is only for conforming loans. How does that help the middle or upper middle class homeowner when they owe more than the conforming loan limit? What happens when the middle or upper middle class homeowners start to give their houses back and we have no money available to purchase these homes? We could, in essence, have a free fall in the Jumbo market. If we have learned from our past mistakes, why are we not making changes to prevent it?  Fortunately, at Samuel Scott, we have some options for Jumbo purchases and refinances to help people stay in their homes because there are many great deals out there.
I also believe that the administration has some very smart people involved and will react quickly and swiftly not to have a freefall effect. I think and believe, if you are sitting on the sidelines, thinking of refinancing or even buying, your window is going to shrink. One thing I have learned from being in the business, for 17 years now, is what goes up always goes down and what goes down always goes up. Over 30 years ago, you could buy a home in Brentwood, Fairbanks or Del Mar for $80,000. What price are you going to pay today? Thirty years ago, we have gone through at least two recessions and one terrorist attack on our soil. I would say that,” that was a good return on investment.”

Remember, now is the time to take advantage of the market, it is not the top. Do not try to time the lowest rate or the lowest price. Trust me, you will lose and then you will say, “Todd you were right, I should have listened!”
Mark and I are available 7 days a week, until 11pm every night on our cell phones. Call us so we can get you off the fence, to either refinance or purchase your home. A wind of change is coming. Today we have options in lenders and appraisers but tomorrow, those same options may not be available. I look forward to hearing from you. Next week I will write about how we used to have competition in the mortgage world and now we don’t. Do you think that is a good thing? Boy, do I have a lot to say.

Call us 858-259-6070 office, my cell is 858-775-8958 and Mark Robertson cell is 858-401-9353