First, I would like to apologize for being gone so long.  The good thing is that a lot has happened since the last time that I made a blog entry.  I have changed Realty Companies.  The new company does loans as well as Realty.  (Got tired of seeing the money being made off my clients going to a national company's programs)Secondly, I would like to say congrats to the agents that have stuck it out in these very trying times. 

Where should I start?  Well let's start with the Government.  The Powers that be are trying to close the barn door after the cows (the inventors of the sub-prime market) have hauled butt with all the change out of the couch cushions.  Congress is trying to put in place rules and regulations that would restrict "Mortgage Brokers", to the excess of putting them out of business.  The only saving grace is that the Mortgage Broker must now align themselves as a branch of a bank.  This is a brilliant move because then these run-a-muck Mortgage Brokers are governed under banking rules and regulations (and do I dare say audits?).  The government is trying to make sure that there will no longer be the "making money hand over fist" on the backs of the home owner.  But like I said earlier this is too little too late.  The government fully understands that the home owner is an endangered species.  So let's move on.  The powers that be are starting to understand that this un-checked thieving is going to have a global impact.  The mortgages that were generated during this sub-prime market were sold to investors in the world market.  So you might be asking yourself "were did the money go"?  The money went the same way as when we had a SNL (not Saturday night live) crisis or when a poltitaly connected company called Enron went belly up.  To the governments credit they are not doweling on the lost just the impact that it's having.  So now the questions are which party will have a plan that will effectively help our state, nation and world market recover?  When you get ready to pull the leaver to make your voice heard I hope this is one of the issues that will pelage your thoughts.  Once again let's move on.  The Fed (the governments money men) has cut the interest rates 6 times this year in hopes of "jump starting" this failing market. (This is yet to have a positive impact)  Congress has given the FHA the ability to raise our "loan amounts" so that they may encompass the high end markets (New York, Cal, CO and FL), the reasoning was that if investors felt their money was federally insured it would generate more money in circulation causing commerce But in the process of placing the carrot for the investors to flock to they have failed to put the proper road map out for them to follow (well that is what I was told).  I'm thinking there might be another reason; the investors are waiting to find out what's going to make them the most money.  The interest rates are dropping and some TV economist are touting that inflation is increasing (kind of reminds you of the Regan days) causing less money to be in circutlation. 

 I have a friend that just closed on a condo in FL.  She was able to get a FHA loan and a grant from the state for the 3%.  Now I understand that it's Florida and that their market is far worse than ours.  But the FHA program is national, so why is it not ready to be used here?

I went to a finical lenders meeting recently.  I asked a lot of questions to which the following is the results.

So you can have a broker get you financed. This broker packages you (the home buyer) so that a company will fund you.  Sometimes this packaging needs to be reworked in order to get you funded (thus you may show up having multiple applications giving you dings on your credit report).  You can also go to a finical institution that will fund you.  It's my understanding that these institutions can lend you its own money or it can lend investors money.

It was the federal government that wanted more US citizens to be given the opportunity to become homeowners.  It's my understanding that's how the sub prime came about.  The sub prime allowed people to buy homes that would normal not qualifies for funding.  The sub prime mostly used Wall Street investor's monies to fund these loans.  The people that qualified for sub prime funding paid a higher amount on the return monies borrowed.  The amount was more than what an investor would make in other market opportunities.  It started out like a feeding frenzy. 

Now this is were the rub comes into play.  Some of these companies that were lending money were doing so in a very haphazard manner.  But because they were marketing so aggressively they were doing monster (record) numbers (new loans). Most of the powers that be were looking the other way.  That is until a few of the sub prime lenders got too greedy and through miss management went out of business.  Which caused a backlash that directly affected the Wall Street investors.  Now the investors sold anything that said, "sub prime", in doing so it started the decline in the real estate market.  It has also caused a shortage of funds for lenders. 

Now people who should not have been funded were, and those people are trying to sell their homes.  They now owe more than what the current market will bare.   So this creates a new area of the market that has not been seen since the S&L schemes of the early 90's, "short pays".  Now this is were the current homeowner tells the lender that they have had a hardship and need to get out of the loan.  This is just a pre curser to a foreclosure action that's in the near future.  Now the lender that holds the loan wants to approve the new buyers, but because there are so many short pays the lender does not want to look at the sale until it gets closer to the foreclosure date.  This decision is made by a new hire that has been given a 22hr class in this area.  The homeowner is sweating out the ruin of their credit history and will soon be filing for BK.  Now the lender that foreclosed is in the hole.  The lender wants its full face value on its investment.  The lender now puts the home on the market, and because they are in the hole they put last years price on it. 

Everyone (the media) is stating that it's a buyers market but in truth its not.  The new homebuilders have stop building, the foreclosures are too high and the short pays require that the lender park you (buyer) on a shelf for 90 days.  So how is it's a buyers market? There is less money available for funding and the inventory is not at market value.

This is not a true event.....the names have been changed to protect....ME

this is a poor try at humor.....hopefully it will leave you with a smile  :-)

I am blown away by agents that align themselves with any specific "guru"...I mean if you were to run across information that you were able to incorporate into your business model wouldn't you use it?  Would it matter were it came from (the library or even dated material that your broker has stashed in a closet).

Hello....I am one of those new agents that you seem to be hitting with a shotgun....I am a full time agent...this is my chosen profession..everyoneI know knows that I am a Real Estate Sales Professional..and because of this I had my first sale last month...I passed my test last Jan...Just got my Lic. in May...I was not even licensed by the state of California and went to a guru workshop and even though I found the information very up lifting..I walked away feeling guilty for the fact that I could not "pay my way" as referred by the pitch of signing up for the coaching (expense) experience...I have been to a few of the "classes" put on by my company (by a title company, Mayor of SC, and a few millionaires in this field)...I have learned a few truths about our little corner of the world...89% of all sales in our area are done by 6% of the sales force...you do the math...and as to those persons that are giving up their dream of becoming successful Agents...your oppion

Quote   " The fact of the matter is that the "fly by night agents" and the "wannabes" are dropping out of this business in droves and only the strong, determined and skilled agents will survive. Which category do you want to be in?

The fact of the matter is that the number of agents getting out of business are the new agents...these agents lack a few things (money, experience, true understanding of how things work, friends in the business, fellow agents willing to reach out and help)..."the strong, determined and skilled agents" are agents that have (some cases many years before) made the transition from regular life into the self disciplined life of a Real Estate Professional..many of these fortified agents have been in the business long enough to have reaped the benefits of when the CA market paid them for "showing up"...you see I think its still about the numbers....you have to spend money to make money..many of the fortified agents know all the "potholes" that litter this business road and were to apply the correct amount of funds to which problems...These "fly by night" agents do not have the residual income or the "royalties" income that comes from being in the business for awhile...so before you fain your shock as to how many people have not signed up for the "increased wealth" classes from your guru...please check the numbers...Just maybe some of the fortified agents that make 89% of all sales would like to help subsidize the "new Real Estate Professional wannabes"..because the field is made up of more than just 6%..I don't know I'm just a new agent..but I have been in some organizations that have a single common thread..Your only as strong as you're weakest link...maybe we, as a field need to be asking..Why can't we take the info that your coveted guru sold you that you learned and disseminate it down to the other 94% of the agents that make up this field?  Why turn this into a variation of a "class" war...the fortified vs. the wannabe's??  There are only two motivations that need to be coached in new agents- greed and or fear...the rest can/has to be taught..

Well-thank you for your time

CJ Murphy

I have concluded another open house; well it was the same one from last week.  I still had flyers (from a third party money lender) left over from the last showing.  I called the listing agent for permission to hold the home open for the weekend.  I started making calls Tuesday, by Friday I had gotten a call from a temp that was covering the office while the listing agent was out of town.  The ironic part of this was that the out of town trip was to a motivational speaker that was/will show the listing agent how to maximize its efforts in the current "down" market.  I say ironic because the person that was left behind covering the phones had not a clue as to what was to be done during the time the listing agent was absent.  I wonder how much business was lost due to a clueless person effectively taking over the listing agents operations?  I am learning that you have to build a "pipeline" in order to grow your real estate business.  Its not easy or cheap to keep this "pipeline" producing business, another fact I have learned is that this production is fragile and that I would NEVER entrust it to anyone that was "less" in the field than myself.  I hope I don't sound hard for my statements. 

test test test test

test