CNBC Pundit Fred Glick on Real Estate & Mortgages

Mortgage Licensing..Does your mortgage originator know?

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sat, 14 Nov 2009 16:05:05 -0600

Repeal The Tax Credit!

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Fri, 06 Nov 2009 17:26:11 -0600

Tax Credit Talk on CNBC Today at 4:30ET

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Fri, 06 Nov 2009 11:45:02 -0600

Nationally respected mortgage and real estate expert Fred Glick will be appearing on CNBC's Closing Bell with Maria Bartiroma at 4:30PM ET today (Friday) to talk about his ideas on the Tax Credit and Extension just signed into law by President Obama.

Fred will be making a major announcement about how the future of the economy should be shaped.

If you miss the event live, you will be able to catch it on http://fredglick.com or on Fred's Facebook Fan Page at by clicking here.

Fred L Glick, Principal Innovationist
Mortgage and Real Estate Brokerage
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fred@fredglick.com      fredglick.com

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Tax Credit Extension Idea

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sat, 31 Oct 2009 09:39:27 -0500

First, I am must state that I am in agreement that the Federal tax credit for purchasing a home should be continued.

But, I believe that the approached can be changed to benefit not only the buyers, but the government itself.

Currently as proposed, no one is required to pay the credit back.

Also, the credit comes back to people after they have bought and the problem most people have is to acquire the funds to buy.

My solution is that you give the people the funds directly for closing and that they pay the money back over a 10 year period, WITH interest so that the Treasury receives a "profit."

So, we don't have to raise taxes, people become more responsible more homes get sold, more jobs get created.

Anybody have a problem with that?

Tax Credit Extension Idea

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sat, 31 Oct 2009 09:38:35 -0500

In-Law Suite, 3 bedroom ranch, beautiful yard, $299,999

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sat, 31 Oct 2009 08:41:57 -0500

Brilliant! A 1-story home with two entrances. Great 3 bedroom home with two baths all on one level with a very modern kitchen, beautiful mature back, fenced yard adn 2 seperate forced air heating systems.

Other anemenities include: hardwood flooring, built in bookcases, pull down attic stairs, newer roof, Anderson double pane energy efficient windows, shed in back and washer dryer!

This home is ready for you (and the in-laws) to move right into! Call Fred Glick at 215-852-4469 or go to http://www.postlets.com/res/2932735 for more info and pictures.

BREAKING NEWS- Tax Credit Will Be Renewed

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Wed, 28 Oct 2009 17:42:16 -0500

Harry Reid's office just confirmed these details:

1) Sen Isakson, Dodd, Lieberman have agreed, and Senate Finance
[Baucus and tax staff] have agreed to this credit extension and
expansion:
2) For first time homebuyers, the income level to qualify is $
75,000/150,000
3) For step up buyers the income level to qualify is $ 125,000/250,000
4) For step up buyers, they must have been residing in their primary
residence for 5 years
5) The credit is 10% of the sales price, with a maximum of $ 7290.
6) The credit runs from Dec. 1, 2009 to April 30, 2010.
7) For legitimate sales contracts as of April 30, 2010 you have 60
days to close.
8) There is a waiver for military.
9) This will be added to the Unemployment Insurance bill. It will
then go to the House.

Tax Credit Chatter Update

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 27 Oct 2009 20:51:31 -0500

By Alan J. Heavens
INQUIRER REAL ESTATE WRITER

Senate negotiators spent today trying to forge an agreement that would extend the $8,000 tax credit for qualified first-time home buyers past its Nov. 30 deadline.

A decision had been expected by tonight, but procedural issues caused a delay, housing-industry sources said.

The Senate compromise would cut the tax credit to 10 percent of the sale price, with a $7,290 cap, the sources said, and would make the credit available for houses under agreement of sale by April 30, with 60 more days to settle.

Once the Senate acts, the plan will go to the House and then to President Obama.

Supporters of the extension attribute 357,000 of the two million sales of previously owned homes that have been recorded this year through Sept. 15 to the credit, which is retroactive to Jan. 1 - purchases they say would not have been made otherwise.

The National Association of Realtors' chief economist, Lawrence Yun, expects the final credit tally to be 400,000 of the five million existing-home sales anticipated this year.

Sales of new homes, whose September numbers will be reported by the Commerce Department tomorrow, also are benefiting from the incentive, with a combination of the credit and interest rates at 5 percent "boosting lower-end sales," said Wayne Norris, sales director for Hanley Wood Market Intelligence, which tracks the market.

Without the credit, recent improvements in the housing market might not have materialized, some observers said.

For example, Standard & Poor's Case-Shiller Composite Index for August, released today, showed prices in 20 metropolitan areas rising for the third consecutive month, this time 1.25 percent.

According to the index, which excludes the Philadelphia region, the steep price declines of the last two years began slowing in February across the nation.

Philadelphia home prices continue to fare much better than those in the rest of the country, third-quarter data from Kevin Gillen of Econsult Corp. show.

Though Gillen did not yet have figures for the entire eight-county region, his city numbers show prices rising a scant 0.2 percent during the summer, compared with a 6.8 percent rise in the spring.

Case-Shiller says home prices in the 10 largest U.S. cities on its list have fallen 32 percent since the real estate bubble burst in 2006. In Philadelphia, the drop has been just 8 percent.

Joel L. Naroff of Naroff Economic Advisers in Holland, Bucks County, said the national market was healing enough that "it's worth seeing if it can make it on its own."

By contrast, Moody's Economy.com chief economist Mark Zandi said "the housing market [would be] better able to stand on its own two feet" if extending the tax credit coincided with job growth.

Patrick Newport of IHS Global Insight Inc. predicted that if the credit were not extended, prices would resume their decline an additional 5 percent after the first of the year.

Noelle Barbone, who heads Weichert Realtors' Media office, said the tax credit had raised awareness of homeownership and captured the interest "of people who never thought of buying a home."

Philadelphia Realtor and mortgage broker Fred Glick is not convinced, saying, "Most of the people who bought because of the credit actually would have bought anyway."

But ask Lisa Portadin, who is selling her Collingswood house to move to Boston, if she wants the tax credit extended, and her answer is pretty definitive: "Absolutely."

As originally proposed by Sens. Christopher J. Dodd (D., Conn.) and Johnny Isakson (R., Ga.), the Senate bill would extend the full tax credit to June and expand it to all buyers earning $300,000 or less, except for investors and vacation-home purchasers.

Amendments by Majority Leader Harry Reid (D., Nev.) and Sen. Max Baucus (D., Mont.) would end the full benefit April 1, reducing it by $2,000 each quarter until the end of the year.

Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.

Fred on Freddie Mac and the Tax Credit

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 27 Oct 2009 11:48:50 -0500

Is The FDIC Killing Short Sales?

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Thu, 22 Oct 2009 14:31:42 -0500

If this is all true, it is very interesting!

Via Robert G Hertzog (Summit Home Consultants):

Is The FDIC Killing Short Sales?

As some of you already know, I blogged recently about being interviewed recently by our local NBC news affiliate. To read the blog, click here. Basically, IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure. For the life of me, I couldn't figure out why they were doing this. The BPO came in at the contract price of $275k, with a net to IndyMac of $241k. What advantage could there possibly be for them to proceed to foreclosure?

Yesterday, I figured it out. You see, IndyMac was taken over by the FDIC and sold to OneWest Bank in March/2009. Guess who the investors are behind OneWest? George Soros, Michael Dell, Steve Mnuchin (former Goldman Sachs executive), and John Paulson (hedge-fund billionaire).

Now, listen to the deal they got from the FDIC....

Basically, they purchased all current residential mortgages at 70% of par value (70% of the outstanding loan amounts). They purchased all current HELOCS at 58% of Par Value!!!

Next, in order to "sweeten the pot", the FDIC stepped in and guaranteed the following: For any residential mortgages where OneWest experiences a loss, the FDIC will step in and cover anywhere from 80%-95% of the loss. The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan. Let's use my clients situation as an example:

Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200

OneWest pays $334,600 for the loan

We have an all cash offer of $241,000, net to OneWest.

So, let's do the math, shall we? The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer. In this case, $485,200-$241,000, or $244,200. Next, the FDIC, according to their Loss Share Agreement, writes a check to OneWest for 80% of the so-called "net loss". So, in this case, OneWest gets a check from Uncle Sam for $195,360 (.80 X $244,200).

Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360. Remember, OneWest paid $334,600 for the loan. So, OneWest puts $101,760 in their pocket, thanks to the FDIC. Folks, that is over $100k of our hard-earned tax dollars!

So, you ask...Why does this program hurt short sales? Because, our brilliant government offers this SAME PROGRAM FOR FORECLOSURES! The only difference is, the government picks up 80% of the tab on all of the extra costs associated with a foreclosure (BPO's, upkeep, utilities/maintenance, legal fees, etc.)

So, If I'm OneWest, why would I want to waste my time negotiating through a Short Sale, when I can make the same amount of money (if not more) by just letting it go to foreclosure? And we wonder why nobody can get a Loan Modification? Why would OneWest approve a loan modification for this guy, when they can foreclose and make over $100k? And, to add injury to insult, they have held this loan for 6 months! Not a bad ROI, huh?

What infuriates me the most is that in my particular case mentioned above, they have the guts to hold my client hostage for a $75k promissory note, after they are already making more than $100k on the sale!!! This is his primary residence, 1st Position loan, and OneWest has NO RECOURSE! Imagine if they could make $100k, then get a deficiency judgement! Talk about making some big bucks!

Can you say "GREED"?

The scary thing is that over 50 banks have Shared Loss Agreements in place with the FDIC. Some of them include: Bank of America (go figure), CitiMortgage, Wells Fargo, etc.

This entire agreement between the FDIC and OneWest can be found here, on the FDIC website. It's all there, for the world to see! They have it all layed out. All of the formulas, worksheets, etc.

Now, it's up to us to bring it to the attention of our elected officials and the media. Enough is Enough!

UPDATE 9/18/09: I JUST READ AN AWESOME ARTICLE ON THIS, THAT GOES INTO WAY MORE DETAIL THAN MY BLOG ABOVE. TAKE THE TIME TO READ IT WHEN YOU GET A CHANCE! CLICK HERE TO READ IT.

Wait, it gets better...The FDIC just announced that it needs to start borrowing money from the U.S. Treasure in order to replenish it's deposit insurance fund (the same fund being used to pay all of these banks in the Loss Share Agreements). Go Figure! Click Here to read it.

Robert G. Hertzog

Phoenix Real Estate Consultant

Dare to meet the 11/30 Deadline

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sat, 17 Oct 2009 08:00:04 -0500

I met with a journalist that had a conversation with one of the mega-mortgage banks who told her that if you did not put in your full application by October 1st, they could not guarantee a closing by 11-30-09.

What are they smoking?

Are buyers and real estate agents going to stand for this?

Of course not.

They are going to find a mortgage broker that gives a darn (or you can replace that with any other 4 letter word of your liking.

The hard working pros that are on the ground will be the ones to push the deal through but don't wait until November.

The final day to really start a mortgage is October 31st. Happy Halloween!

Now, what will happen after this date? I foresee that is when there will be an extension of the credit. It will not be what it is now because the CBO has said it will cost between $16 and $20B.

My answer? Give us the credit but under three conditions:

1. Have it paid back over 10 years at 3.5%. This way people have "skin in the game"
2. Give it directly to the consumer for a down payment so they can actually buy the house!
3. Give it to everyone. First-timers, second home buyers, foreclosure investor buyers too.

Let's not forget, all the buying will still depend on one thing- J-O-B-S! Duh!

Everybody should stop watching Jon & Kate, the balloon boy (who names their kid after a bird?) and concentrate on how we can manufacture long-term, real, good paying jobs in America.

Unemployed now? Try volunteering for a non-profit that deals with companies you want to work for, take a commission only job, intern somewhere for free. One never knows what might come out of all that, but it is different and it will give you a better chance of success.

Interest Rate Predictions

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Wed, 07 Oct 2009 15:46:46 -0500

The Future of Interest Rates

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Wed, 07 Oct 2009 15:42:22 -0500

New Housing Bill Will Force Loan Modification

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Wed, 07 Oct 2009 08:35:48 -0500

Via Claudette Millette - Metrowest Mass Exclusive Buyer Broker (The Buyers' Counsel):

Four senators are putting their muscle behind a new housing bill intended to prohibit lenders operating in the U.S. from foreclosing on home owners without first having discussed reasonable modification options with the borrowers.

The bill, called the Preserving Homes and Communities Act is being sponsored by Rhode Island Senator Jack Reed, Illinois Senator Dick Durbin, Jeff Merkley of Oregon and Sheldon Whitehouse of Rhode Island.

Under this bill, lenders will be forced to the negotiating table under the threat of stiff fines and other legal penalties.

All lenders will be required to perform what the bill terms as a "net present value" test for all seriously delinquent borrowers. The test would be a financial analysis weighing the benefits of a modification of loan terms against the benefits of foreclosure.

For borrowers who do not fit into this program, the bill would create a multi-billion national fund for states to make loans or grants in order to prevent foreclosures.

The senators' rationale behind the creation of this bill is that they are frustrated with the slow pace of current loan modification programs and feel that they are not keeping up with the record numbers of foreclosures this year.

"Voluntary efforts to keep families in their homes have failed," said Durbin. "This bill will force lenders to modify qualified mortgages rather than letting them move quickly to foreclosure, which destroys households and neighborhoods."

The act will also set up a mortgage payment assistance program to provide money to state housing agencies to assist people who have lost income and face the prospect of foreclosure.

The most significant aspect of this bill would be to create "mandatory mediation" requirements forcing lenders to allow some mediation efforts between them and their borrowers before being able to file foreclosures against home owners.

This proposal will, no doubt, be met with opposition by banking and mortgage lending groups. It is, however, currently favored to be supported in the House.

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How my office got smaller and larger at the same time

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 06 Oct 2009 19:33:35 -0500

In the past month, 4 new people have come into our multi-state real estate brokerage company in both Pennsylvania and California.

Yet, my office space has actually shrunk!

With the installation of another printer/fax/scanner, we have less space for people in the office, yet, we have more people.

Why? We actually have it down pat that that agents are better being out having contact with real people (while they Tweet of FB!) and get deals.

So, if you are thinking about what you can do to modernize your real estate career, we are happy to teach you to get out of your chair, move far away from the water cooler, learn to engage real people and make your life happier along with giving you more spare time while you make more (and ethical) money, give me a buzz, email, tweet, FB post or personal visit!

Fred Glick, Principal Innovationist

U S Spaces, Inc

877-282-5789

Housing slump spawns winners and losers

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Mon, 05 Oct 2009 10:53:03 -0500

I was quoted in an article in the Philadelphia Inquirer this weekend. Read all about it at Housing slump spawns winners and losers

Every Seller Needs To Know, What Sells a house?

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sun, 04 Oct 2009 08:23:10 -0500

Via Carra Riley CRB, CRS, GRI (Carra Riley Inc.- Real Estate Consultant, Author, Speaker ):

Every Seller Needs To Know, What Sells a house?

There are four varibles that sell a house.

1. Price

2. Terms

3. Condition

4. Location

All four of the variables go together to create the "perfect sale." Each aspect must be taken into consideration if you want a property to sell.

1. Price fixes everything! Don't let anyone tell you different. When the buyer perceives there is a value because of the price, they will buy the home.

The other three varibles always can effect the price.

There are circumstances where a buyer has lost the ability to qualify for a traditional loan because of a foreclosure or bankruptcy and the buyer needs owner financing. With Owner carry Terms that particular buyer may be willing to pay more because they have ownership with possibly a small down payment.

Conversely, if the Condition is bad the price will have to be reduced to reflect a value in the home where a buyer will have to come in and do repairs or cosmetic updates.

Location is the toughest variable in the sale to compensate for. Most people have heard about in Real Estate the terms Location, Location, Location. If the location is bad.. ONLY price will sell the property possibly combined with terms so exciting that a buyer will not be able to pass up the deal.

2. Terms. If the Terms are attractive, sometimes a seller can get more money for the home. For example: a home with a value of $325,000 listed with owner carry terms of $25,000 down and no bank qualifing might be able to sell at $350,000 because of the terms.

Under any owner carry situation, it is important the seller speak with their accountant and attorney before accepting any contract and agreement to finance. The seller should be completely aware of the liability and consequences in owner financing. This is just an example how price can increase with the right terms.

3. Condition is a key factor in selling a home. When the property is in top condition, looking like a show home the seller may get top market value for the property. In times where homes are selling at a slow pace, in order to procur a sale, the home should be the BEST property at the Lowest price to get to the closing table.

Taking a seller on a preview tour of the homes in the area similar to their property can save months of discouragement with a home not selling. When a seller can see the competition and accepts the fact their home needs to be the Best house at the lowest price to sell, the home will sell and the seller will see what they are up against in comparison.

Carpet or paint allowance does NOT work in selling a home. If the home needs carpet, put it in. If the home needs painting, get it painted. Many times this can cost a seller $5,000 to $8,000 to do those upgrades. Investing, yes, investing is the correct term, for getting the house sold. The money invested will come back in the form or a quick sale at full market value.

A picture is worth a thousand words so think about how the property looks and even take some pictures to see what a buyer is looking at. Sellers should look at the pictures like they were a buyer and ask, "would I buy this house in this condition for this price?" Are the kitchen counters cluttered? Are the closets a mess? What does the front door look like and the yard when people drive up to the house?

A seller has 8 seconds for a buyer looking at a home to decide if they really like the house and if it will go on the A list. The buyer starts the decision making process when driving up to the home while looking at the surrounding properties and the entrance to the home.

There are many agents are trained in "staging" a home and there are "staging services" which help a seller to understand what needs to be done to create a "marketable product." Listen to these people if you want to get the house sold.

The seller needs to separate from the house and see it as an investment or product that needs to be sold. The seller needs to take all the emotions out of the happy memories in the home if they are serious about selling.

4. Location is the only variable which cannot be changed. A bad location, is a bad location so only price and terms are going to help this situation.

It does not matter that the same model home across the street sold for thousands more, because it was ACROSS THE STREET and did not back to the highway. A seller needs to get a reality check on location and think about when they purchased. If the seller got a good deal when they bought because it had a bad location then they have to give the new buyer the same good deal to sell.

Sellers should take all the emotion out of the business of selling a home and treat the transaction as an investment decision.

If the goal is to get the home sold then listen to the professionals and let them do their job.

As Donald Trump would say, "It's only business."

Cosmic Cow Pie

Carra Riley

New, Stricter FHA Condominium Lending Guidelines Coming Nov. 2: First Time Buyers Affected

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Sat, 03 Oct 2009 08:59:44 -0500

Via Richard Vetstein (Vetstein Law Group, P.C.):

Originally posted on the Massachusetts Real Estate Law Blog

Breaking News: 10/1/09–The FHA Has Delayed Implementation Of New Rules Until November 2, 2009 To Coincide With Expiration of First Time Home Buyer $8,000 Tax Credit

Under revised guidelines which were to be effective October 1, 2009 but now delayed until November 2, 2009, the Federal Housing Administration (FHA) is implementing a new stricter approval process for condominiums to be eligible for FHA financing. Like the Fannie Mae regulations issued earlier in the year, the new FHA guidelines will surely slow down condominium mortgage financing, and negatively impact first time home buyers for condominium units.

For those who don’t know, FHA is a government program designed to help more people buy homes, and more borrowers will qualify with FHA financing than with conventional. It is a low down payment (3.5% down) program and the credit standards are much looser. The mortgage rates are typically better, as well.

To obtain a FHA mortgage on a condominium, the project must be FHA approved. Prior to these changes, there were two ways a condominium could be FHA approved: (1) full project approval, and (2) “spot” approval. Full project approval means that FHA has already done the approval on the entire condominium. Spot approvals were performed on non-FHA approved projects on a loan by loan basis, and were a way to make FHA loans available to home buyers in well run condo projects even if they haven’t gone through the full approval process.

No More Spot Approvals

Under the new guidelines, the popular spot approval process will no longer be available and will be replaced with something called a Direct Endorsement Lender Review and Approval Process (DELRA). FHA claims the DELRA process is more uniform and streamlined that the former spot loan approval process. Also, full project approvals expire every two years, so condominiums will have to re-certify every 2 years.

New Project Eligibility Guidelines

Under the new project eligibility requirements, all condominiums (consisting of 2 or more units) must meet the following requirements:

At least 50% of the units of a project must be owner-occupied or sold to owners who intend to occupy the units. For proposed, under construction or projects still in their initial marketing phase, FHA will allow a minimum owner occupancy amount equal to 50 % of the number of presold units (the minimum presale requirement of 50 percent still applies).

Projects must be covered by hazard and liability insurance and, when applicable, flood insurance.

At least 50% of the total units must be sold prior to endorsement of any mortgage on a unit. Valid presales include an executed sales agreement and evidence that a lender is willing to make the loan.

No more than 15% of the total units can be in arrears (more than 30 days past due) of their condominium association fee payment.

No more than 25% of the property’s total floor area in a project can be used for commercial purposes. The commercial portion of the project must be of a nature that is homogeneous with residential use, which is free of adverse conditions to the occupants of the individual condominium units.

No more than 10% of the units may be owned by one investor. This will apply to developers/builders that subsequently rent vacant and unsold units. For two and three unit condominium projects, no single entity may own more than one unit within the project; all units, common elements, and facilities within the project must be 100% complete; and only one unit can be conveyed to non-owner occupants.

Rights of first refusal are permitted unless they violate discriminatory conduct under the Fair Housing Act.

Buried in the fine print is a requirement for an affirmative action-type housing plan. For both new construction and conversions, if the developer intends to market 5 or more units within the next 12 months with FHA mortgage insurance (that would be most), an Affirmative Fair Housing Marketing Plan (AFHMP) or a Voluntary Affirmative Marketing Agreement (VAMA) must be in place. An affirmative fair housing marketing plan requires that the racial, socioeconomic, and ethnic composition of the condominium residents closely mirror that of the neighboring area, to the greatest extent possible. Most new condominiums don’t have these in place.

Click here for the new FHA condominium guidelines. You can look to see whether a condominium is approved on the HUD Homes & Communities website located here. Here is the FHA Condominium Mortgage webpage.

The Impact: More Work For Lenders, Condominium Associations/Managers And Attorneys

I expect FHA lenders will approach condominium association boards and managers, asking for certain information, certifications, and even legal opinions regarding compliance with FHA (and Fannie Mae) legal requirements. If a condominium is not on the FHA-approved list, or has lost its approval, condominium associations should consider applying for approval (or re-approval). Reportedly, FHA/HUD is backlogged a month or more in reviewing submitted applications. Thus, should your condominium need to be submitted for approval, keep in mind the process may take some time. Also keep in mind that the work to compile and complete the application package itself can take weeks, and require the board, its manager, and legal counsel to gather data, documents, and expert opinions required for FHA approval. The package of materials that must be submitted can vary from condominium to condominium, and often requires an updated reserve study and certain legal opinions.

Having issued numerous opinion letters and certifications under the similar Fannie Mae condominium regulations, our office is well equipped to assist lenders and buyers with FHA loan compliance issues. Contact rvetstein@vetsteinlawgroup.com for more information.

Jobs Are Job One

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 29 Sep 2009 09:45:46 -0500

My interview on CNBC's Closing Bell with Maria Bartiroma talking about the Obama Administration proposal for $32 Billion dollars to states and my state of the industry and new ideas to make it better>

Whoops, UPS

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Wed, 16 Sep 2009 13:02:46 -0500

The economy on a consumer basis is about the sale of goods and services. One of the best borometers that I have are the activites of the UPS and Fed Ex trucks.

Being in a downtown environment where I live and work, I know the names of the drivers and talk to them frequently.

Recently, I did not see one of the UPS guys around the neighborhood for about a week. I figured it was vacation time. Wrong!

I saw him today and he told me that they cut a lot of routes into Center City Philadelphia because of the slowing economy. So on the day that Federal Reserve Chairman Ben Bernanke declared that the recession is "technically over," along comes the sobering news from the people that deliver all the stuff you bought cheaper on the net. The bigger problem is that I think this may really cause inflation.

For the last few years, people have fought inflation by finding it cheaper on a website like Amazon or eBay but if people slow down their spending, either the super discounted products will end and/or local stores will go out of business causing prices to rise from the survivors. It's all about job creation.

If we don't find the magic job spark (like the internet was to the 90's) we are going to have way too many people upset in our late 00's jobless recovery (a boon for Wall Street, though). What's the answer, I don't have it yet.

Maybe after the next cup of coffee!

Disney and Real Estate

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 18 Aug 2009 05:53:52 -0500

If you are in real estate, plan a vacation for this winter, not now.

It's a hot, muggy August pre-sunrise morning and thoughts of beaches and hydration are on people's minds.

Sweat, shorts and sodas are soaking their souls and the thoughts of economic recovery, tax credits and mortgage backed-securities are not nearing their frontal lobes.

(OK, here comes the BUT....)

BUT, we are just over 90 days away from the second real estate bubble explosion in the last few years.

Why? The expiration of the $8000 tax credit matched with the Gestapo like mortgage guidelines, high interest rates and the lack of job creation will blow up the temporary real estate blip that we've seen since the spring.

If you a first time eligible buyer for the credit, you must CLOSE and FUND by 11-30-2009 in order to get the credit.

That means, you need to find a house and start your inspections, mortgage, etc ASAP so real estate agents need to do a 24/7 for their clients in order that they make the timing.

If you are a Seller, don't be ridiculous, if you need to come down a couple of thousand in order to sell, do it because if you don't, you may cry in your egg nog this Christmas because once the credit goes away (which was the catalyst for buyers to get off the fences to begin with), the buyers go back to the Dark Side!

Now, a message for our friends in the mortgage world:

YOU ARE TURNING AWAY GOOD MORTGAGE WITH STUPID NEW RULES

Need I say more? The rules are just stupid for conventional programs and the crap they are allowing into the Government agency loans (FHA) are also nuts.

I again call for all the mortgage bureaucracies (Fannie, Freddie, FHA, VA, USDA) belong into one agency, one set of guidelines and reality to set back in.

Also, each loan needs to have a small insurance fund payment and the government just needs to back each loan, post-insurance so we never have to bail out banks again.

Now onto rates. If you want to stimulate an economy, the basics are that we lower interest rates and we've done that with the Fed lowering the rates to the banks (Fed funds, etc) but what about rates to the public?

Mortgage rates should be very, very low and there should be very easy rate reduction refinances with NO appraisals for people that have the income and good credit.

Most of their loans are already securitized by Fannie and Freddie, so why not let them take a trip to Banana Republic or a trip to Disneyworld to help get the country going so we can add real jobs.

To summarize, if you are a Buyer that can qualify for the credit, get an agreement as soon as possible because Sellers may raise prices in the early part of September to capitalize on the end-of-the-credit people looking to get their share.

If you don't qualify for the credit, wait until the week before Thanksgiving to start looking.

The buyers will have been sucked out like a vacuum cleaner on high and the winter will start coming in.

Sellers might get into a realistic mood and sell at a lower price.

The other idea is to wait until January or February when they may be suffering more and not have the idea that spring is around the corner.

So real estate people, it's hard work followed by Disneyworld!

It's Official! The Real Estate Market Has Peeked!

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 04 Aug 2009 17:26:54 -0500

http://tinyurl.com/qlzvwd

CNBC 6/22/09. Me versus Congressman Barney Frank

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Mon, 22 Jun 2009 15:50:03 -0500

Lower Rates or Bring On the Depression!

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Tue, 09 Jun 2009 18:04:23 -0500

If mortgage rates don't come down, we won't be able to refi those stuck in the crappy loans/high rates that they got put into and people will stop looking at buying homes.

The result will be worse than this past recession.

How do we make it work?

Start with the full consolidation of Fannie, Freddie, FHA and VA into 1 agency and then have the U S government guarantee every loan.

The Fed can now buy the loans. They will get a return by getting the payments. It is NOT an inflationary result.

Also, bring the clock back to non-risk priced mortgages.

We have to make sure the mortgage market functions properly with a few tweaks.

Lower rates and practical underwriting makes the most sense!

When you start too high....

Fred Glick (U S Spaces, Inc & U S Loans Mortgage LLC) — Wed, 03 Jun 2009 17:17:08 -0500

Fire-sale prices for luxury Center City condos By Alan J. Heavens Inquirer Real Estate Writer Price break on luxury condos in striking glass tower in Center City. Best offers over $250,000 considered. That's the strategy for moving 40 of the 178 units still unsold at the Murano at 21st and Market Streets, to be sold at auction for sums 50 percent below their original list price later this month. Take the 1,405-square-foot, 23d-floor unit originally listed at $995,000. It could go for $485,000, less than what it would cost to build today, said Jon Gollinger, president of Accelerated Marketing Partners, of Boston, which is handling the sale for Murano's developer, Thomas Properties Group Inc. "These are preposterous numbers," Gollinger said of the prices, which are based on his analysis of the Philadelphia high-rise condo market. "But there is disequilibrium in the market, and the only way to get it moving is to try to provide an extreme-value opportunity - a once-in-a-lifetime event." The sale, set for 1 p.m. June 27 at the Westin Philadelphia, 99 S. 17th St., is not an auction with absolutes, said Gollinger, who markets high-rise condo buildings nationally. "If the reserve published minimum bid is $250,000 and no one bids above it, the condo sells for $250,000," he said. Business has lagged at the 302-unit Murano, which was completed last year. So far, only 124 units have sold, and 112 have gone to closing, according to the city's Board of Revision of Taxes. Yet Gollinger said that the auction would not be a "clearance sale" and that he hoped by selling the first 40 units, the remaining ones would go quickly. "I'm just allowing the market, not the developer, to set value, based on what we know to be the critical mass," he said. By analyzing the entire market, Gollinger said, he found that $249,000 is the price buyers should find most compelling. What happens to those who have already paid full freight for their condos? Gollinger planned to address that last night at a closed meeting of Murano's property owners. "Of course, we wanted them to know what was going on before we began publicizing it, but we are counting on the fact that people who bought into the Murano were looking for a particular lifestyle," Gollinger said. "The nature of the economy means that the building otherwise wouldn't be full for two years, and by doing this, the homeowners would be able to take control of things sooner," he said. Kevin Gillen, vice president of Econsult and a Wharton School of Business fellow who studies the Philadelphia housing market, said the Murano's developer may be taking drastic action to avoid even greater pain. "Murano may be playing the recourse game," Gillen said. If a condo developer reduces its debt to the lender to a certain level, but then sales fall below target - usually 80 percent of total units - the developer has no other recourse than to do whatever it can to pay the debt off or lose the remaining units to foreclosure. Prudential Fox & Roach broker Joanne Davidow, who sells high-end condos in the Rittenhouse Square area south of the Murano, said the sale of these units at "bargain-basement prices is probably a very sad decision of last resort for the developers and banks, who put so much into their project." It reflects a prolonged recession hurting consumer confidence, "which is the key to a strong or weak home-sales market," she said. Some Center City condo buildings have been hit quite hard, such as the Aria at 1419 Locust St. In January, a bankruptcy judge appointed U.S. Equities, a Chicago developer, receiver of 55 of the 62 unsold residential units there after the developer, Universal Residential, stopped paying its lender, iStar. Those unsold units have not yet gone back on the market. In all, 114 residential units and three commercial units sold in the renovated building. Prudential Fox & Roach agent Mark Wade, who focuses on condos throughout Center City, said a quick corrective proposal such as the one being tried at Murano could be an "easy and effective resolution to what otherwise would be a long-term, lingering problem." "What is interesting . . . is the fact that many of the largest, most expensive units in many Center City buildings remain unsold," Wade said. "There is a common thread among the unsold units in newer buildings: The one-bedrooms almost all sold, and sold well, while disproportionately, the larger, more expensive units have sat on the market." As with Aria, whose condos many real estate agents considered overpriced at $333,000 to $3 million, "the sooner the Murano units get on the market and become owner-occupied, the better the result will be for the condo association," Wade said. With first-quarter sales just one-third that of the same period in 2008 for new condos, according to Delta Associates, which tracks the market segment, it's possible that Murano's gamble - if it succeeds - may have a limited effect on other projects. "The market dictates prices, and I don't see these being gobbled up like they think it will," said Center City mortgage and real estate broker Fred Glick. "No matter the price, financing is extremely difficult for a building that is not 50 percent presold, so . . . investors with cash will be the only ones that will probably buy these." Glick said that Murano's distance from Rittenhouse Square has been a stumbling block to sales, and that the retail offerings that surround it, including adult theaters and vacant buildings such as the former Keystone AAA headquarters at 20th and Market, have not helped either. Condo developer/broker Allan Domb said a onetime bulk sale at the Murano actually will be less painful than trying to sell 40 units over three years at lower prices. "Maybe," Domb speculated, "the developer is looking at this as a method to stay alive for two years and revisit, hoping that there is a market then at 21st and Market Streets."