George 's Blog

Lenders Fail To Modify Home Loans

George Sinacori (GES Real Estate LLC) — Sat, 24 Oct 2009 08:00:24 -0500

Politics and corporate greed continue to eat away at the hearts and wallets of American homeowners.

According to Bankrate.com just 2000 homeowners have received loan modifications beyond the typical 3 month trial period nationally in the 7 months since the administration issued it's guidelines to lenders in order to help homeowners avoid or avert foreclosure. That equates to approximately 4 successful modifications per month per state. Lenders will typically stall short sale efforts simply because they can't see beyond dollars and cents. If the Bankrate.com information is correct they have danced around and away from folks asking for modification assistance and the Fed isn't concerned.

The Obama administration's claims of 500,000 homeowners being helped may be little more than political grandstanding again at the expense of homeowners who have been brought to their knees financially leaving many without any other recourse but to eventually walk away and try starting over somehow.

If you need help or have question regarding todays real estate and mortgage markets in SE Florida please call me directly 561-306-6736 or email your questions to rebuygeorge@yahoo.com Find more information about the SE Florida Real Estate market at GES-Realty.com Posted by George Sinacori

Appraisals & the Home Valuation Code of Conduct

George Sinacori (GES Real Estate LLC) — Thu, 24 Sep 2009 10:01:57 -0500

On May 1, 2009 Fannie Mae and Freddie Mac implemented the HVCC (Home Valuation Code of Conduct) as a result of government pressures to reform valuation methods related to residential mortgage loans.

The impact of the HVCC has been chaotic. A myriad of inherent flaws with valuations methods has created more downward pressure on housing prices which in turn has contributed to a lagging housing recovery. Not the least among the unintended consequences of the HVCC has been the use of foreclosed and other distressed properties as comparables. Other inappropriate practices indicate that appraisers work in areas where they don't know the market. In many instances the value of comparables is determined by an exterior inspection only because the appraiser is unable to or unwilling to inspect the interior .

The following is an overview of the HVCC.
- Appraiser Selection
All members of the lender's loan production staff are forbidden from selecting, retaining, recommending or influencing the selection of an appraiser.
Loan production staff consists of:
Individuals who are involved in origination, underwriting, presenting credit offerings for approval and credit decisions Any person who reports to a loan production staff member or is compensated on a commission basis upon the successful completion of a loan.

- Quality Control on Appraisals
Lenders agree to perform quality control tests on at least 10% of appraisals by use of retroactive or additional appraisal reports or other appropriate method.The quality control testing must be performed on randomly selected appraisals The lender must report the findings of the quality checks to the Independent Valuation Protection Institute (IVPI)

- Hotline Notification
Lenders must notify appraisers and borrowers of the IVPI's telephone and email hotline for complaints concerning any improper or attempted improper influence on appraisers or the appraiser process.Lenders must notify every appraiser of the hotline in a separate letter. Each borrower must be notified of the hotline in a cover letter accompanying the appraisal.

- Effective September 1 2009:
Fannie Mae requires all lenders to obtain a signed and processed Form 4506 from all borrowers at application and again at closing. Form 4506 is an IRS document that allows a lender to verify a borrowers tax returns through the IRS.

According to a report by FAR (Florida Association of Realtors) housing industry groups such as the NAR (National Association of Realtors) and the NAHB (National Association of Home Builders) are calling on federal regulators to address the problematic HCVV and to develop "clear and concise guidance" for the use of foreclosed or distressed properties in appraisals in order to develop more realistic valuations in appraisals based on truly comparable properties.

For more information and updates on the HVCC please feel free to call me, George Sinacori, GES Real Estate, LLC directly at 561 306-6736 or email me at rebuygeorge@yahoo.com

Posted by George Sinacori

Defining The Next American Dream

George Sinacori (GES Real Estate LLC) — Wed, 09 Sep 2009 09:19:49 -0500

Housing prices peaked 40 months ago in May 2006. What have we learned from the great housing bubble and crash ?

Obviously, we have learned that housing prices can be extraordinarily volatile. No one can ever again say foolish things like housing prices never fall. People who bought with a standard mortgage in the years close to the boom have lost all of the equity in their houses. Buyers and lenders should never again think that an area's recent price increases are the sign of a strong market where prices have nowhere to go but up. In the long run, price increases are followed by price drops, and caution needs to be taken in booming markets.

The second lesson of the housing debacle is that there is extraordinary pain in both housing busts and booms. When housing prices soared, ordinary Americans found it increasingly hard to afford a house. During the boom, many hoped that housing prices would stop rising and even decline, not understanding the terrible impact that declining housing prices would have. Large swings in housing prices, can be extremely painful.

The third lesson is that the response to the American housing crisis has been embarrasingly foolish. We've used public resources to encourage ordinary Americans to bet all they could on the housing markets. We have allowed the bail out of financial firms that had lost too much on those mortgage gambles or were deemed to big to fail. We continue to provide billions of tax payer dollars to the same institutions that were instrumental in creating the bubble that burst what once was the American Dream.

All of these "lessons " leave me wondering what the next American Dream will be.

Perhaps a much less volatile, more comforting lifestyle with a reassurance that we live in a country that cares for it's citizens emotional, financial and physical well being. That the people we've put in charge are truly capable of handling those responsibilities. That we the people and our families are the beneficiaries and not the victims of big business and big government.

For more on today's housing market call 561-306-6736 or email rebuygeorge@yahoo.com

Posted by George Sinacori at 6:46 AM

FREE $$$ - TIME RUNNING OUT ON HOMEBUYER TAX CREDIT

George Sinacori (GES Real Estate LLC) — Wed, 02 Sep 2009 12:39:31 -0500

FREE $$$$$

The National Association of Realtors estimates that about 1.8 to 2 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.

Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible - it is taking approximately two months to complete home sales in the current market. Short sales could take even longer.

For more info call me at 561-306-6736 or 877-566-2430 or email rebuygeorge@yahoo.com

What happens when a lender can’t produce the original note?

George Sinacori (GES Real Estate LLC) — Tue, 18 Aug 2009 08:32:42 -0500

Via Rick Misitano (Law Offices of James M. Bosco & Associates):

A growing number of homeowners around the country are using a foreclosure defense that may help them retain their homes. It’s called “Produce the Note” and we want you to know this is not a mere technicality that should be treated lightly by the lender or by the Court.

Everyone needs to understand the importance of this issue. When a lender can’t produce the original note, allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party in the future. Therefore, great caution must be taken before a judge can allow someone who can’t produce the original note to cash in on your home.

What if Your Lender CAN’T Produce the Note?

So, what happens when the lender tells the Court it can’t produce the original note, because it is lost? Let’s start with the basics. If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed. That right to foreclose belongs ONLY to the person who has legitimate POSSESSION OF THE ORIGINAL NOTE - not a copy, not an electronic entry, but the original note itself with the original signature of the person(s) who allegedly owes the money along with appropriate raised notary seal and signature. So, if you are faced with a foreclosure, you have every right to demand that the person or entity trying to take your property, first prove to the Court that they have the legal right do to so in the first place by proving they have legal possession of the original promissory note.

In my opinion, an original mortgage note is much like legal tender and should be guarded and protected as such by the person holding such an asset. Loosing an original mortgage note is like loosing a $100 bill or a gift card or a lottery ticket. What if I scratched that million dollar ticket and just stuck it somewhere and misplaced it? Do you think I could just show up at lottery headquarters and claim my prize without having the winning ticket? The same principle applies to the person or entity claiming to be the legal holder of an original mortgage note. He who holds the note holds the key.

What the Lender Must Do

What often happens, however, is that the lender claims it doesn’t have the original note, because that note has been lost or destroyed. If the lender is making such a claim, the law requires the lender to prove all of the following under the “Uniform Commercial Code”, which is a set of laws governing commercial transactions that many states have adopted. It contains a specific provision on this subject (Section 3-309) which states that a person can enforce a promissory note without having the original, BUT only under certain limited circumstances.

1. The person or entity has to swear and attest that it no longer has the original note;
2. The person or entity has to prove that it was properly in possession of the note and was entitled to enforce it WHEN it lost possession of the note;
3. The person or entity has to prove it didn’t “lose” possession simply because it transferred the note to someone else (i.e., it’s not really lost); and
4. The person or entity has to prove that it cannot produce the original note because the instrument was destroyed or its whereabouts cannot be determined or it was stolen by someone who had no right to it.

All of these matters have to be definitively proven by the person or entity trying to foreclose on the property. It is not the obligation of the borrower to prove or disprove any of this. The borrower can challenge the right of the person or entity trying to foreclose and demand proof.

The Court’s Important Role

It is up to the Court to determine whether the lender has satisfactorily proven why it no longer can produce the original note. The Court also has to be satisfied that when the original note was lost, the person trying to foreclose on the property had possession of the note at the time it was lost. Until the Court has been satisfied of all of this, the foreclosure cannot proceed.

It is also important for the Court itself to understand that this issue is not merely a “technicality” and the judge should not be satisfied with anything less than full proof of this issue. The Court itself needs to appreciate the fact that if it should agree that an original note has been legitimately lost (and allows the foreclosure to proceed) it is the borrower who is still at risk.

Why? Because incredibly, even if a Court has found that the original note is lost and the foreclosure sale is finalized, if someone later turns up with the original note and proves that it is the proper holder of the note, and not the person who foreclosed on the property, the original borrower is STILL LIABLE.

That’s right. Someone took your home and the Court allowed it because it believed that the lender proved that the note was lost and it was the proper party. Then someone legitimate shows up in the future with the actual note and you still owe that person the money even though your property was taken with the blessing of the Court. Trust me, this is a very serious issue regarding post foreclosures and post pre-foreclosure short-sales. It has happened to three of our own clients! These homeowners had the need to sell their property by means of a negotiated short-sale (so they could avoid a foreclosure) only to find out that the entity claiming to have the legal right and authority to enter into such negotiations and accept such settlements sold their note to another entity and weren’t even aware of it. Several months later, the newly assigned lenders (now claiming to be the rightful owners of our client’s original notes) have since come forward and have also filed suite seeking to recover their entire outstanding principle balances owed to them (prior to the homeowners closing their short-sale transactions with the wrong note holders).

How fair is that?!?! It’s not! And that’s why homeowners need to start fighting back when someone is trying to take their home by foreclosure, especially since an overwhelming percentage of mortgages granted over the last 3 to 5 years have been packaged into securities and re-sold and re-assigned numerous times since the inception of the borrower's original note and mortgage. In some states, homeowners have better than a 50/50 chance of being successful in defending themselves against a completed foreclosure. Why wouldn’t anyone who owns a home do everything in their power to protect and defend it?

All the Best,

Rick D. Misitano, Senior Paralegal
Law Offices of James M. Bosco & Associates
Methuen Executive Park
240 Pleasant Street
Methuen, Massachusetts 01844
Phone: (978) 687-8804
Fax: (978) 687-8872
boscolaw@comcast.net

Short Sale Failure Frustrate Home Sellers

George Sinacori (GES Real Estate LLC) — Tue, 11 Aug 2009 10:38:20 -0500

Home sellers are as frustrated as Realtors when the deal involves a short sale, as most home sales do these days. A recent survey revealed that only 23% of short sale contracts actually get to close. Although buyers come pre approved for financing and prices are market value, a host of problems still plague the short sale process. Rapidly falling appraised values due to neighborhood foreclosures combined with the snail like pace of lenders processing short sale packages are the heart of the problem (in my opinion).

Delays by lenders allow impatient buyers to walk away while values deteriorate to a lesser price than contracted for. A more efficient system may in fact reduce pending sale times with a more workable window and help to hold sales together. Short sales, after all should be seen as a way to prevent foreclosures and related costs to lenders. It's frustrating that with a way to avoid those costs many wind up in foreclosure anyway as a result of prolonged waiting periods. many lender delays are a result of insufficient staff and a lack of short sale experience and processing systems. Delays may also occur as a result of Realtor inexperience in submitting documents or informing buyers and sellers of the length of time involved.

Some lenders are considering or at least examining ways to shorten the process and short sale approval time by getting BPO's (appraisals) and setting bottom line prices in advance of a contract. Ideally this lets a seller and realtor offer a property for a price that has already been accepted by the lender. The Treasury Dept. expects to provide lenders with a standard set of documents as well along with added incentives to help move the process along. Both steps in the right direction and an inevitable step in the evolution of home selling. More and more short sales are becoming the standard for home selling. The need for expeditious systems is now.

If you're trying to sell or buy a home please call 561-306-6736 or email me for more valuable information. Go to GES Realty.com for any real estate searches

Message To Banks: "You Can't Handle The Truth!"

George Sinacori (GES Real Estate LLC) — Sun, 26 Jul 2009 10:29:54 -0500

Are banks holding back foreclosures and creating a false or temporary market bottom? According to a July 24,2009 article in the Miami Herald some analysts believe just that. Inventories of foreclosed and short sale homes have dramatically declined over several months as banks have been less inclined to take back more properties. For example, typically in Florida a judicial foreclosure filing takes approximately 6 months. Presently that time frame is more likely to be a year or longer.

I believe that banks are ill equipped to handle this new market of foreclosures and short sales. They don't have the personnel or the resources to actually take a property over and than turn it around quickly to market and sell. That being said it would seem more beneficial to not take on any more than they can handle. It's important for banks to exhibit a healthy or sustainable bottom line these days. Taking in non performing assets like an avalanche of foreclosed properties would not project the image that they need under the scrutiny of the Fed. It only makes sense that they should delay taking these properties back.

How about short sales? Would it benefit banks to process short sales faster than they have? If my analogy is right it seems that may be a good next step. If I have an asset that becomes a liability I sell it if at all possible. I think most people would unless there were some type of emotional connection to it. Why than, if banks are dragging there feet on foreclosures wouldn't they streamline the short sale process and rid themselves of the liability? Is it greed plain and simple? Maybe they're just not that sharp after all.

For more info and recent statistics email me or call me directly 561-306-6736 . Visit my website for info on buying, selling, tax credits, available foreclosures, short sales and existing homes.

Appaisals: Crippling the Housing Recovery

George Sinacori (GES Real Estate LLC) — Wed, 22 Jul 2009 10:27:03 -0500

Lower appraisals are one of the biggest problems sellers, buyers and Realtors are faced with today. Because mortgage amounts are based on an appraiser's estimate of value, appraisals are a crucial cog in the machinery of the housing market. That cog may have ground to a halt recently.

Newly enacted federal government guidelines compounded by lenders putting pressure on appraisers to be very cautious of plummeting home values have crippled the already slow housing recovery. When a home is placed on the market, normally the fair market value is considered to be comparable to other homes sold at "arms length transaction" prices. In today's market these transactions are few and appraisers use distressed, foreclosed or short sale prices as comparable. An inappropriate approach by an appraiser using sales of distressed properties drives down prices on everything. A person not under water but needing to sell may be subject to the perceived value of an unjust appraisal because of the foreclosure down the street.

I and many other Realtors have listed homes that would have closed at list price only to be appraised lower due to a foreclosed or short sale closing occurring during our marketing activity or while we were in contract waiting to close. I may tweak a few appraisers with this post but I have to say it. Much of the housing bubble run up was directly related to over valued appraisals. Appraisers today are being more cautious.
The bubble or run up in values and the low ball appraisal are results of pressure on appraisers from lenders. At some point the dog needs to wag it's own tail and begin to take control of itself.

For more on selling your home, home values, mortgage rates and available properties call me directly at 561-306-6736, email me directly at rebuygeorge@yahoo.com , visit me on Twitter , or go to ges-realty.com

First Time Homebuyer Guidelines

George Sinacori (GES Real Estate LLC) — Tue, 16 Jun 2009 14:25:21 -0500

Buying your first home can be daunting. There are lots of factors to consider before buying, like your lifestyle. Ask yourself what your needs are and if owning a home will fill those needs. It 's important to consider that buying a home is more than a financial investment, although it can be rewarding in years to come. Even when housing prices don't increase rapidly buying your first home can prove to be a sound financial decision. The equity you build can help fund things like a college education for a child or your own retirement. Mortgage payments are like forced savings. As long as they are made and left untouched the savings will grow. The longer you stay in a home the more equity you'll build.

Once you've decided on buying your first home you should have a price range in mind and a short list of communities that will fit that lifestyle that we mentioned. The price is going to be detemined by how much home you can afford. Get pre-approved for a loan before looking at properties. It's not fun to fall in love with a home that you ultimately can't afford. Remember that there are going to be ongoing expenses as well. In addition to the mortgage payments there are utilities, cooling and heating, property taxes, assessments, insurance, repairs and services like landscaping as well as replacement of appliances. Condos and townhomes may not have the same maintenance requirements as single family homes . Older homes are often less expensive than newer but may require more attention and repair.

Most homebuyers today begin their search on the internet. Find a site that is easy to navigate and doesn't require you to register in order to search for homes. Once you've located a number of desirable homes and communities you'll want a professional Realtor to help you. Make sure that the Realtor is licensed and has MLS access. Ask plenty of questions about the area your considering. A good Real Estate Broker can be a valuable source of information and can easily guide you through the home buying process. Look for an experienced Broker with solid market knowledge. Your Broker's knowledge and ability to negotiate for you can save you time and money.

Remember that you will want to sell this someday. The more information you gather before buying, the better that purchase will look in the future.

If you have questions about buying your first home or selling a property please call me directly at 561-306-6736 or email me at rebuygeorge@yahoo.com

Protection For Renters Living In Foreclosed Homes

George Sinacori (GES Real Estate LLC) — Sat, 06 Jun 2009 12:16:50 -0500

A bill passed by both houses and signed by the President on May 20, 2009 titled "Helping Families Save Their Homes"establishes among other provisions, some level of comfort for renters unwittingly caught in the foreclosure crisis. Many renting families have become victims of the foreclosure crisis by not knowing that the home is being foreclosed. Without warning they may be told that the home now belongs to the bank and that they have 48 hours to vacate. A provision of this bill finally addresses the problem and provides some security for renters of foreclosed homes. Helping Families Save Their Homes establishes protections for renters living in foreclosed homes.

According to Senator Dodd of Connecticut and a U.S. Senate publication:
"One of the overlooked problems in the foreclosure crisis has been the eviction of renters in good standing from homes that go through foreclosure because owners of those homes, unbeknown to the renters, have not been paying their mortgage. The bill will require the bank that forecloses to honor the existing leases, for renters on a month-to-month basis, provide a 90 day notice. If the bank sells the property to an intended owner occupant, 90 day notice is required. Parallel protection are provided for Section 8 tenants"
Senator Chris Dodd is Chairman of the Senate Banking, Housing and Urban Affairs Committee.

Other provisions of the bill reportedly are designed to help prevent foreclosures and increase the availability of consumer and business credit. Some of these are listed as;
- Expand Access to Hope For Homeowners
- Increase funding for Foreclosure Prevention
- Provide New Resources for Homeless Americans
- Increase borrowing authority for FDIC and NCUA (National Credit Union Association).

For more information on the new legislation or answers to questions about buying selling or renting in Southeast Florida please call me directly at 561-306-6736 or email rebuygeorge @yahoo.com
Free MLS searches and up to date information on how to buy or sell, including short sales and foreclosure are available at ges-realty.com

Foreclosure Trends in Southeast Florida

George Sinacori (GES Real Estate LLC) — Mon, 01 Jun 2009 09:14:17 -0500

While the economy continues to struggle, home prices are still falling under the pressure of foreclosures and short sales. Here in Florida a stagerring 11% of home loans are in some stage of foreclosure ranking the state first in the country for defaults.
With home values continuing to fall the foreclosure rate will surely increase through this year. Prices can't stabilize until the oversupply is at least equal to the demand. According to information provided by Zillow.com approximately 71 percent of homeowners in two Southeast Florida counties who purchased homes in the past 5 years are underwater or owe more than the home is worth. Lenders are finding that loan modifications aren't working as many borrowers fall behind again within in a year of the modification. These are borrowers who may have escaped the foreclosure process but will return given time.

According to information provided by RealtyTrac, preforeclosures still account for the largest piece of the foreclosure pie. This is the time that lenders, sellers and buyers should recognize as opportunity and take advantage of. This is the time to short sell and avoid the whole foreclosure mess.

The pie chart above indicates current foreclosure trends in Palm Beach county. Of almost 15,000 homes county wide in the foreclosure process, 89% are in the preforeclosure stage. That of course does not mean that they will all be foreclosed or that they are all currently for sale. What it does mean is that there are still a lot of homes that need to be sold at current market prices. Statistics provided by RealtyTrac over the most recent 2 quarters show that the largest decline in values in the county occurred in Boynton Beach and Stuart respectively while the lowest averarge foreclosure sales prices were in Delray, West Palm Beach and Boynton. The total number of foreclosures sales in the county was up slightly in April. The greatest value being in a 3 bedroom home between $100K and $200K. These show the largest decline in price and the greatest number of available properties.

Being aware of market trends has always been important to anyone considering buying or selling a home. Today it's more important than ever. Understanding price trends can make or break a buyer. Current sales trends and the short sale process is key to a seller looking to get their life and finances back on track. Lenders need to streamline the process if they expect to minimize the loss. Todays market is primarily a short sale market and will be for the foreseeable future.
The real estate market today is complicated. Buyers and sellers need good, solid, trustworthy information from an experienced reliable scource before getting into it.
I encourage anyone in South Florida needing assistance with the process to call me at 561-306-6736, email your questions or go to ges-realty.com for more information..

Record Low Rates May Be Rising

George Sinacori (GES Real Estate LLC) — Mon, 11 May 2009 10:45:44 -0500

According to mortgage giant FreddieMac, 30 year fixed rate mortgages rose last week to an average of 4.84% from 4.78%. The low of 4.78% was recorded twice in April, as rates held below 5% for 8 consecutive weeks. FreddieMac's records date back to 1971.

Low rates have stirred the refinance markets as borrowers seek to lower or lock in a fixed rate that may not be available for very long. Many economist believe that mortgage rates will remain unchanged or fall further over the next 30 - 45 days.

Although mortgage rates have fallen dramatically, qualifying for a loan is tougher. Lenders have tightened credit, lowered credit lines and offer the best rates to borrowers with solid credit.
According to Congressional legislation passed last week lenders offering other than traditional fixed rate mortgages would be required to verify a borrowers credit history and income and make a reasonable determination that a loan can and likely will be repaid. Additionally the loan should show a net tangible benefit for the consumer.

Being able to meet the tougher criteria can be a real benefit to anyone willing to invest now as we bounce along what seems to be the bottom.
For some of the most incredible opportunities in the South Florida real estate market take a look at some of the properties I have available in great locations like Boca Raton, Jupiter Farms, Pt. St. Lucie, Boynton Beach, Deerfield Beach.

Anyone buying or selling a property should call or visit our website at ges-realty.com to learn more about how to buy and sell in todays tough economy.
561-306-6736 , rebuygeorge@yahoo.com , ges-realty.com

Is Housing Bottoming?

George Sinacori (GES Real Estate LLC) — Sat, 02 May 2009 09:04:11 -0500

May 2, 2009 - As the housing market slowly moves closer to bottoming, rates on 30 year fixed rate mortgages tied a record low this past week.

Average rates on the 30 year fixed rate mortgages fell to 4.78%. A year ago average rates were 6.06%. A considerable difference for any borrower. A new 30 year fixed rate mortgage taken today could mean a savings of $165 monthly or close to $2000 a year.

Inventories are dropping as homes have become more affordable. Recently inventories of single family homes month to month in certain areas of South Florida that I like to watch closely have declined by 30% or more.
As availability declines and prices begin to stabilize, lower more affordable mortgages are attracting more buyers.

Some REO or bank foreclosure inventories still not showing on the market could stall the momentum as lenders again begin to process and place foreclosed inventories on the market. It's my belief that once a bottom is recognized these lenders will indeed flood the market with inventories, creating another round of competition between sellers, albeit on a more even playing field, where pricing is key.

If rates remain low and prices bottom, affordability would than be more related to individual incomes, credit and employment stability. Housing may very well be near bottom.
The underlying question may now be - will other economic conditions recover or lag behind housing?

Homeowners and Government Bailouts

George Sinacori (GES Real Estate LLC) — Tue, 21 Apr 2009 09:08:37 -0500

In all of the billions of dollars being handed out, I don't see much help or hope for troubled homeowners , foreclosure prevention, housing, Real Estate, home builders or for the real estate industry in general. Although housing has always been at the core of the economic meltdown, much of our tax $ are going to help banks and financial institutions bail themselves out in order to continue doing business. Still, few people are able to sell their homes because would be buyers can't get loans. Property appraisals are less than what's owed. Banks and lenders are still slow to respond and reluctant to take losses making sales of properties and purchasing a property frustrating for everyone involved.

Looking at the numbers it's absolutely staggering to me that we still don't get it. I use the term "we still don't get it" because we, the American taxpayers, see it, pay for it and basically just allow it to go on.

Here is how the NY Times reported much of the distribution of TARP $ through April 01.

Beyond the $700 billion bailout known as TARP, which has been used to prop up banks and car companies, the government has created an array of other programs to provide support to the struggling financial system.
Through April 1, the government has made commitments of about $12.1 trillion and spent $2.5 trillion. Here is an overview, organized by the role the government has assumed in each case.

The Government as Investor
$7.7 trillion
Spent: $1.4 trillion
Includes direct investments in financial institutions, purchases of high-grade corporate debt and purchases of mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae.

The Government as Lender
$2.3 trillion
Spent: $680 billion
A significant expansion of the government's traditional overnight lending to banks, including extending terms to as many as 90 days and allowing borrowing by other financial institutions.

The Government as Insurer
$2.1 trillion
Spent: $340 billion
Includes insuring debt issued by financial institutions and guaranteeing poorly performing assets owned by banks and Fannie Mae and Freddie Mac.

Money market funds:
The Treasury originally guaranteed these accounts up to $50 billion, but the program has been extended by the Fed, which has in a few cases had to step in to buy illiquid assets of some funds to help them meet obligations. The Treasury has received $813 million in fees from participating mutual funds. Some 1,900 funds are participating.
Committed:$3 trillion

Commercial paper:
The Federal Reserve has become the buyer of last resort in the $1.6 trillion commercial paper market.
$1.6 trillion
Spent: $247 billion

Federal Home Loan Bank securities:
The Treasury and the Federal Reserve have begun buying debt and mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae.
$1.5 trillion

Public-private investment fund:
The Treasury announced details of this program on March 23. The government will seek private investors and use a combination of private and public money to buy nonperforming assets from banks.
Note: $100 billion of the total amount committed comes from the Troubled Asset Relief Program.
up to $900 billion

Troubled Asset Relief Program (TARP):
In return for bailout cash, the Treasury now owns stock in hundreds of banks, General Motors, Chrysler and the insurer A.I.G. The largest recipients are A.I.G. ($70 billion), Bank of America ($45 billion) and Citigroup ($45 billion cash and $5 billion in support of a loan guarantee).
$700 billion

A.I.G. The Federal Reserve has provided seed money to create investment vehicles to buy, hold and possibly dispose of bad securities held or insured by A.I.G.
$53 billion

Bear Stearns The Federal Reserve bought distressed assets from Bear Stearns to facilitate its sale to JPMorgan Chase.
$29 billion

Term Asset-Backed Securities Loan Facility (TALF) This program, launched on March 3, will provide loans and accept securities backed by consumer and small-business loans as collateral. Note: $100 billion of the total amount committed comes from the Troubled Asset Relief Program.

Term auction facility The Federal Reserve is making these low-interest loans of either 28 or 84 days to financial institutions, allowing them to pledge a variety of collateral, including asset-backed securities.
$900 billion

Other loans These loans from the Federal Reserve's discount window used to be confined to commercial banks and were only overnight. Now, terms have been extended, in some cases up to 90 days, and investment banks have access to them. The total amount on loan has significantly expanded.
At least $236 billion

Debt swaps (Term Securities Lending Facility) The Federal Reserve is lending liquid United States Treasuries for 28 days in exchange for less liquid agency debt, debt backed by mortgage-backed securities and investment-grade corporate debt.
$200 billion

A.I.G. A line of credit offered by the Federal Reserve that the insurance company has partly tapped. The Treasury announced on March 2 that the line of credit will be reduced to about $25 billion. And instead of paying back the outstanding debt, A.I.G. will give the government a preferred stake in two of its international subsidiaries.
$60 billion

Bank debt (Temporary Liquidity Guarantee Program) The Federal Deposit Insurance Corporation has begun insuring senior subordinated debt issued by banks and poorly performing assets owned by banks, Fannie Mae and Freddie Mac. The program is now slated to run through June 2009.
Committed: $700 billion

Fannie Mae/Freddie Mac The companies were put into conservatorship and the Treasury initially pledged up to $200 billion to cover their losses. Freddie Mac has now received a $14 billion infusion.
$400 billion

Citigroup - The government is backing the bulk of $306 billion in loans and securities. This amount does not include direct investment through the TARP program.
$249 billion

Bank of America - The government is backing loans and securities worth $98 billion. This amount does not include direct investment through the TARP program.
$98 billion Posted by George Sinacori

Stimulus - American Recovery??

George Sinacori (GES Real Estate LLC) — Sat, 14 Feb 2009 14:35:07 -0600

Now that "Stimulus" has become an everyday word we, the good tax paying, corporate rescuing, stimulus funding Americans find ourselves preoccupied wondering.... "what's in it ?" Even more important ..."what's in it for me ?"

Relatively very little is the answer. But than as long as they throw us a bone here and there, we should be humbled and awe inspired at the abilities these great and powerful decision makers have in figuring all this complicated stuff out.

First let me say that they haven't even begun to figure anything out.

I have lots of issues with the handling of the Economic Tsunami fiasco now being called "The American Recovery and Reinvestment Act of 2009"

Providing banks with billions of dollars in (taxpayers) bailout money with no requirement as to how that money could be used should never have happened. But it did. Not addressing the core or root of the problem, which is housing is still another short sighted, arrogant, ignorant message that our fearless politicos unashamedly send. The message is simple, when it comes to housing banks are more important than individual homeowners.

I tend to look at economic problems in business as if they were a barrel of water with a hole in the bottom. Unless you plug the hole you'll never refill the barrel. In order to plug the hole we need to address housing which requires addressing property values as they relate to mortgages. Unless lenders agree to modify each and every mortgage to current market value the barrel bottom will remain unplugged. Marking down mortgages to market value could quickly stabilize housing. People could confidently sell a property at market without "permission" to reduce the amount owed from a bank allowing sellers to sell with thier heads above water. Banks and lenders could concentrate on loaning money to borrowers rather than foreclosing on properties. Many buyers who have gone back to the sidelines after a horrific experience with a short sale attempt would come back into the market and begin buying again. This time directly from sellers. Buyers and sellers today are not market makers. In what there is of a housing market banks and lenders are today's market makers. In order for any free market to thrive and survive it must be comprised of buyers and sellers. When you take them out of the equation (one or the other) there is no market. Stabilizing mortgage values in housing will stimulate spending even further. Any homeowner having or anticipating problems going forward would feel much more confident if they weren't so preoccupied with the unknowns. Sellers of homes would again become buyers and stimulate new construction. Buyers of homes buy furniture, TV's, appliances, equipment. Corporations hire when consumers spend, consumers spend when they are confident in the future, housing has always been the key and from my perspective it remains the key. Plug the hole in the barrel before you throw more water into it or it will just drain out of the barrel as it has since the first stimulus attempt in 2008 under the previous administration. And the subsequent $700 billion failed corporate bailout last year. You can't fill a leaky barrel. Fix housing, reset mortgages to today's market value and we can restart the economy.

One of the items in the "new" stimulus revisits another failed attempt from the previous plan. Last years legislation approved a First Time Homebuyer Tax Credit up to $7500 with certain restrictions. This shortsighted piece of legislative work required that the credit be paid back to the government, albeit interest free, over a prorated period to the IRS and in full if you sold before it was fully paid back. The "new revised edition" of First Time Homebuyer Tax Credit allows up to an $8,000. tax credit or 10% of the value with no requirement to repay. Provisions come with income levels that begin to phase out for individuals earning over $75,000 and married couples filing jointly earning more than $150,000. It is available to anyone who has not owned a property in the past 3 years buying a home between Jan. 1, 2009 and Dec. 1, 2009 and is forfeited if the property is sold within the first 3 years.

I wish I could say "hooray" they got it right this time but my goodness why do they have to fail before the light goes on. Is this really going to help? The last measure was an absolute failure and this one is doomed as well until the correlation between home values and outstanding mortgages are seriously attacked. Until individuals become at least as important as corporate America we will continue groping for the bones that are thrown our way while others line their own bank accounts and pockets with our hard earned tax dollars.

Oh I'd be remiss if I failed to mention a couple of other "perks" from the stimulus unrealtede to housing that you may benefit from.

- In 2009 you are eligible to receive a tax credit up to $400 per individual and up to $800 per married couple based on 6.2% of your earned income. This fades once incomes of $75K for individuals or $150K for couples are reached.
You are eligible wether or not you have a Federal tax liability. This according to a summary of the stimulus bill that the Senate Finance and House Ways and Means Committees released.

- If you're fortunate enough to be able to buy a "new" car this year the taxes both State and Federal are deductible. Stipulations are on income limitations.

- Unemployment benefits are not taxed up to the first $2400 of benefits you receive.

- Health Insurance. If you get fired, your company is required to allow you to pay to keep your health insurance, generally for up to 18 months. Now, the federal government will subsidize 65 percent of the premium for up to nine months. You need to have been forced out of your job between Sept. 1, 2008, and Dec. 31, 2009. There are also income limitations in the year you receive the subsidy.

Here again is a link to the Legislation which at this time has not been signed into law by the President:

The American Recovery and Reinvestment Act of 2009

I've attempted to list some of the items that you and I may directly benefit from as the hundreds of billion of dollars are dispersed in yet another attempt by a clueless Congress, Senate & Administration to "get our economy back on track."

If you have any questions on how the First Time Homebuyer tax credit may affect you or if you need answers related to your mortgage, property values, refinancing, loan modification, buying selling or finance a property please call:

George Sinacori 561-306-6736 / 877-566-2430

email rebuygeorge@yahoo.com

www.ges-realty.com

Todays Mortgage Rates

George Sinacori (GES Real Estate LLC) — Thu, 15 Jan 2009 11:38:31 -0600

Todays Fixed Rate Mortgage

Current mortgage rates are much more attractive than I can ever recall. A qualified borrower may now be able to obtain a 30 year fixed rate mortgage for less than 5%. Todays rate is an incredible 4.87%. It's amazing.

Anyone with any type of adjustable rate mortgage taken years back should be taking a hard look into reducing or solidifying that mortgage payment for the long term. Considering that many of us will now be forced to remain in our current homes for many years to come a low fixed rate mortgage makes sense.

Selling a home today is difficult. Market prices are below what most are willing or even able to accept. Homes selling are either foreclosed properties being discounted by lenders or short sale properties with a lenders agreement to accept less than what they are owed on the current mortgage. These sales make todays market and consequently todays market price. Buyers willing to take advantage of todays rates and prices are looking to foreclosed homes first. Unless a private seller is able to compete with these market prices thier home understandably will not sell.

Alternatively a homeowner may consider a loan modification. Many lenders today are willing to reduce the interest and monthly payments on mortgages that they currently hold in order to keep a good borrower in that home. A loan modification makes sense if your mortgage is higher than the market price of your home. In other words, as a result of the decline in home values and your lenders overzealous lending practices in the past, you are upside down in your home mortgage. Loan modification and refinance require similar documentation although they are completely different. For example with a refinance you can shop for a new rate, term and lender. A loan modification must be negotiated and provided by your current lender. In a modification the lender decides what to offer you, if anything and you than have some time to decide if you'll accept the newly presented terms. If you choose to accept, a new payment plan will begin on a predetermined date. Rarely will a lender reduce the principal amount owed on a loan. More likely the rate is lowered below current fixed rates for a period of 3 or 5 years reducing the monthly payment accordingly.

Refinancing until the market mends may be the best next step. A new fixed rate loan at todays historically low rates may reduce your present or future monthly payments considerably. The monthly savings on a $100,000 mortgage at 7% refinanced to 5% is approximately $125 monthly. On a $200,000 mortgage the savings is $257 monthly. That's more than $3000. a year. If you were to invest that same $3000 recieving a nominal 3% annual return will give you approximately $16,400 after 5 years. That makes sense. Lowering monthly payments in order to save money in a very tough economy is not just good, it's a giant step in the right direction.

Call me directly with any questions you have on refinancing, buying or selling a home, loan modification, or current mortgage rates and terms. I'll be glad to help. 561-306-6736.

How Mortgage Relief Options Work

George Sinacori (GES Real Estate LLC) — Fri, 19 Dec 2008 12:05:21 -0600

Loan Modification - Short Sale - Deed In Lieu - Forbearance

Forbearance -Temporarily suspends all or a portion of your monthly payment, followed by a formal plan using another option listed here to return your account to a current status. Your hardship is expected to be short term in nature, or you know that you will be able to pay a particular amount on a specific future date and continue with your payments from that point forward.

Repayment Plan - Adds a portion of past due amounts to your regular monthly payment until your account is current. Your hardship is expected to be short term in nature, and may even be over, and you have the ability to make an increased payment for a short period of time.

Partial Claim - Returns your account to a current status using funds from your mortgage insurer or guarantor. Your mortgage is insured and your hardship is short term. Subject to mortgage insurer or guarantor approval.

Modification - Makes your payment more affordable by permanently changing one or more of the terms of your original note and mortgage. Delinquent amounts can sometimes be added back into the loan balance. You can afford a reasonable payment that is less than your current payment and/or you don't have enough cash to bring your loan current.

Short Sale - Allows you to sell your home for its current value, even if it is worth less than what you owe. You can not make any payment but want to avoid foreclosure.

Assumption - Transfers title to a credit-qualified buyer, even if your loan is non-assumable. You can not make any payment but want to avoid foreclosure.

Deed-in-Lieu of Foreclosure - Transfers title to the property back to the lender to satisfy the amount you owe. You can not make any payment but want to avoid foreclosure and you have had your home listed for sale for at least 90 days. This option is reserved for the most extreme situations and is subject to investor approval.

For more information contact me at 561-306-6736 or george@ges-realty.com

George E. Sinacori, GES Real Estate, LLC www.ges-realty.com

Loan Modification & Credit Solutions

George Sinacori (GES Real Estate LLC) — Fri, 21 Nov 2008 12:19:34 -0600

Is your property worth less than your mortgage? Are you having difficulties keeping up with your mortgage payments? Are you carrying high credit card and other unsecured debt? Has your credit score been hurt as a result? Many of us today can answer yes to at least one of these questions and some are facing all of these problems with little or no help.

What if you could lower your mortgage payment to an affordable level? Would you take advantage of an opportunity to reduce the prinipal on your loan or to lower the interest rate?

If you could improve your credit score to a credit rating that you would find acceptable and beneficial would you?

If you could renegotiate most of your credit cards and debt would you?

The answer to these questions is obvious. Of course you would, we all would and with todays credit solutions now we can. As part of our committment to providing "Simply Better" client services GES Real Estate is offering the following additional services:

- Loan Modifications (reduce your payments and keep your home)
- Short Loan Refinance (refinance to a lower affordable mortgage)
- Short Sale Mitigation (sell your property for less than you owe)
- Deed in Lieu of Foreclosure (avoid foreclosure and further obligations)
- FICO Enhancement (quickly and effectively improve your credit score)
- Debt Settlement (free up cash and reduce your credit card debt 50% or more)

GES Real Estate together with a network of attorneys and credit specialists with many years of experience in the credit markets is able to offer any or all of these services designed to help clients emerge from very difficult times with a much stronger more positive financial position while enjoying immediate relief from the financial pressures and uncertainties they now face.

We have all the tools necessary to help in these very trying times. Here are some answers to commonly asked questions regarding Loan Modification:

- You do not have to be late to negotiate a modification or short sale
- Option ARM and negative amortization loans are negotiable
- Non owner occupied homes are negotiable as are duplex etc.
- Rates can be negotiated lower than normal or par
- Terms can be extended beyond 30 years

A loan modification can consist of any or all of the following;

A. Rate lock (i.e. 3 yr fixed, 5 yr fixed, 30 yr fixed)
B. Rate reduction (ie.7.25% to 5.5%, 5.95% to 3.25%, 11. % to 6.5%)
C. term extension (ie.15yr term to 30yr term, 30yr term to 40yr term)
D. Principal Reduction

If you or anyone you know need to lower your mortgage payments to an amount that you can realistically afford, improve your credit score or settle your unsecured debt please call 561-306-6736 or 877-566-2430 or email me at rebuygeorge@yahoo.com for a private consultation.

Preparing Your Home To Sell - The Staging Advantage

George Sinacori (GES Real Estate LLC) — Mon, 03 Nov 2008 10:35:47 -0600

Selling a home today is difficult. It can become costly and time consuming. The way home values have fallen many sellers find it difficult spending any money on getting the property ready for the market. Sellers today are competing with foreclosures, short sales and homes that may be in top condition. Not preparing the home before putting it on the market can put a seller at an even greater disadvantage. Investing a little time and money can help to give you an advantage that can reduce the amount of time it takes to sell and increase the chances that you'll actually sell it for more than you otherwise would have.

As in any market, with some direction and hard work there are preparations that can be made inexpensively. A lot can be done that doesn't cost much at all as long as you're willing to invest the time.

For example:

- Curb appeal. I believe this is where it all begins. Adding inviting color and simple displays to the exterior and garden will help to make the home attractive from the road. Exterior paint may be the greatest enhancement you can make in order to create interest and begin a successful selling process. I've had a client who was approached by an interested buyer before he had a chance to put the ladder and tools away.

- Be sure your front door and entrance way are clean, attractive and inviting. Buyers spend time here waiting for you. A properly staged entrance will create a positive first impression and convey a feeling of comfort. Stage the home to project that first great impression and a welcome feeling.

- Personal possessions should be packed away. It will save you time and allow you to get rid of things that you may no longer want. Buyers will be better able to see the home for what it is rather than focus on your stuff.

- Declutter counter tops, tables, walls, closets, office and laundry areas. Buyers want to be able to see what the home has to offer. Remove clutter and keep rooms as simple as possible.

- Arranging furniture is key to allowing the home to appear open and spacious. I often see a sofa placed across the center of a room greeting buyers with the back of a sofa. Move sofas against walls and place a chair opposite it. This will open up the room and create a flow.

- Furniture sizeis sometimes not right for showing a home. Over sized or too much furniture can create doubts as to how large a room really is. Too much large furniture in a bedroom can create concern for a buyer. Properly staged, a room should be accommodating to the furniture in it.

It may be worthwhile to hire a professional to help stage your home. Some sellers only need an initial consultation with the staging decorator. A good home staging decorator will be able to point out what you should keep and what should be removed before you begin showing the house. Ask for recommendations on arranging furniture and artwork. Remember, the way you live is not necessarily the best way to show it to prospective buyers.

For more help with getting your home ready to sell contact me at 561-306-6736 or email me at mailto:rebuygeorge@yahoo.com or visit my website at GES Realty and search for Home Staging

How to Carve a Great Jack 'O Lantern

George Sinacori (GES Real Estate LLC) — Tue, 21 Oct 2008 09:11:50 -0500

Enough about the economy and the election and such. This post is going to help in a very different way.

Carving a fantastic Jack 'O lantern for Halloween can be easy, fun and even self fulfilling. Important stuff when we are all feeling the economic squeeze and very vulnerable. So without further delay let's get started and create something that brings a smile to our faces.

First we need to select a Pumpkin to carve. You can carve a real pumpkin from the pumpkin patch or a synthetic that will last from one Halloween to another. Whichever you choose make sure it's large enough and has a good flat or even bottom to it. We don't want to place our masterpiece on display lopsided so be sure that it can stand on it own. Remember when picking a pumpkin to never carry it by the stem.

Now that we have a great Pumpkin we can prepare it. You can draw your design right onto the pumpkin before you begin carving or make a template to use while carving. Making a template works great. Tape it in place on the pumpkin and poke holes about an eighth of an inch apart along the design cutouts. Most variety stores sell inexpensive carving kits. The key to safe carving is sharp tools. Make sure that your saws and knives are sharp enough. The least amount of force that you have to use lessens any chance of any accidental slip. Gut the Pumpkin either from the top or bottom. If you cut out the bottom you can easily place the Pumpkin over a candle or light. If you cut from the top remember to cut an angle inward so that the top can be placed back on without falling inside. You can also cut a notch in the lid so that it's easy to place back in it's spot.

Gutting the Pumpkin can be messy but a good wet-dry ShopVac can make it easy. If you don't have one use a margarine lid or empty tuna can to scrape out the guts. Be sure to get the walls nice and clean being careful not to crack your pumpkin from the inside out. After gutting and for increased stability, carve the smallest pieces out first and work your way to the larger sections. In fact leaving the cutouts in place until your ready to pop them out can help add support until you've finished carving.

Thoroughly gutting and cleaning the pumpkin before you carve it will help preserve it and make it last. Applying a little petroleum jelly to the cuts and edges will help to seal in the moisture and preserve your creation as well. Spraying the whole thing inside and out with Lysol will help to keep any pumpkin killing bacteria away.

Lighting is key to making your creation come alive. A low watt electric light can help reduce heat and any shriveling that may happen. A lighted candle works well inside the pumpkin also. As an added effect you may consider burning some incense or spice inside your Jack 'O Lantern.

Happy Halloween.

George Sinacori

IS GREAT CREDIT STILL IMPORTANT?

George Sinacori (GES Real Estate LLC) — Mon, 13 Oct 2008 10:36:09 -0500

It may seem like an odd topic for discussion or consideration at a time in our economy when overextended credit has gotten us into such a mess. If you've had a difficult time getting a loan lately it can be unsettling although there may be some comfort in knowing that your not alone. Because of the condition of the markets, getting a loan will become increasingly more difficult.

Our credit scores reflect our behavior as borrowers. You may not consider your credit score as important as it was a few years ago being that it's so difficult to get any these days. Credit and credit worthiness still matter for many reasons. You may eventually need a new mortgage because you're relocating for employment or for any number of reasons. You may need your good credit to send a child to college. You may need it to continue using credit cards because your income has fallen or disappeared for awhile. Your good credit may help get you through the difficult, unexpected times that seem to inevitably sprout up on us from time to time. We can't always know when our credit may be a factor but if a need to borrow becomes apparent it could be too late to repair any credit problems.

Our credit is something that we still have control over. We can see our credit history and credit report in the privacy of our own homes by going to annualcreditreport.com .
A copy of your FICO score which is the combined credit rating from 3 reporting agencies is available also. at myfico.com . Currently the median FICO score is 720 but that number may very well change in coming months. As more people default on loans the average or median score will get lower.

If your considering a new mortgage the rule of thumb now is the larger the down payment the better the rate as long as your credit is good. If you don't have a large down payment there are still good loans available. FHA insured loans require as little as 3% down even if your credit score is below average. It would be great if these conditions for lower scoring people were available for other types of loans. Until they are our credit score is crucial to our survival and we can protect it, improve it and preserve it.

Check your credit report for any possible errors. Look for accounts you may not recognize and report any discrepancy to the credit bureau. They could be an indication of identity theft. Report any incorrect late payment recordings or other derogatory errors that could negatively affect your score. They should respond to your requests in no more than 30 days. Preserving our credit may seem like an exercise now but at least it's something that we each still have complete control of.

For more information on FHA or conventional mortgage requirements or for the latest available mortgage programs and rates call or email George Sinacori 561-306-6736.
Visit GES Realty online or any of my websites to search for a home in Southeast Florida.

Taxpayers $700,000,000,000 Handout

George Sinacori (GES Real Estate LLC) — Fri, 03 Oct 2008 09:30:33 -0500

"Wall Street" has never translated to "housing". Try as they may to make them synonymous it isn't so just because someone says it is or want us to believe it. Looking at the players in the current economic debacle, this madcap comedy of errors, I'm reminded how much the Secretary of the Treasury and the Chairman of the Federal Reserve emulate a classic cartoon comic strip of old. Cartoonist Jeff Fisher's characters Mutt and Jeff were business men, almost smart enough to be con men. Mutt was tall and lanky, slightly bent forward while Jeff, his partner, was shorter, a stockier physical makeup and balding with a mustache and beard. I'll give you a moment here to visualize. OK! See any similarity yet? If not here's a link to Mutt and Jeff. Almost uncanny I think.

These two energetic little lunatics were always looking for the easy way to get something. They would attempt the craziest most hair brained schemes and act on them, believing that they couldn't or wouldn't fail. Mutt and Jeff were always surprised to be tossed on their butts, from wherever they were trying to sell their junk by much more sane level headed people.

Our Treasury Secretary and Chairman of the Federal Reserve however have achieved what the fictional Mutt and Jeff only aspired to. They've somehow convinced the most advanced, most sophisticated and supposedly most intelligent government in the world that they need $700,000,000,000. Is that enough zero's? Congress is busy running around convincing each other to vote one way or the other. The House and Senate have each already voted, one no and the other yes to give. What they've forgotten is that the real issue with the economy is still housing. How does Wall Street translate to housing? I just don't get it.

A recent First Time Homebuyer tax credithas not stimulated people to buy houses. A $300,000,000,000 FHA initiative designed to help refinance "troubled mortgages" has done little. Although that was made available only last week I don't see any rush on FHA refinancing. Federal takeovers of both Fannie Mae & Freddie Mac have cost us tens of billions of dollars and still banks and industry giants continue to fail under multi million dollar leadership. Corporate greed, corruption and politics as usual have put us all on the edge of our seats waiting to see or hear whether or not Mutt & Jeff have made the ultimate score. A taxpayer handout to rescue Wall Street. What happened to rescuing housing? The aforementioned Homebuyer Tax Credit, FHA plan and Corporate bailouts were all initiatives of our Treasury and Fed leaders. They weren't thrown out like Mutt & Jeff they just haven't worked. Hey here's another hair brained scheme. Give them $700B to try to bail out Wall Street. It may not work but heck if you guys are in a giving mood and your pockets keep getting deeper give it up.
No guarantees, no need for oversight or regulation, Mutt & Jeff will let you know when it fails. In the meantime Mr. and Mrs. Taxpayer keep watching and keep waiting. Something good may happen someday.

Like the more sane level headed business minded people that kept throwing Mutt & Jeff out on their backsides, I want to remind everyone of a little word seldom used anymore when it comes to doling out billions of dollars in response to tantrums born of greed and overindulgence. Just say NO. Say no to the Wall Street power brokers, say no to the corruption, say no to the partisan politics that have lead us to a dark place in our country's history and say No to any more Mutt & Jeff like schemes. Let the corporations and their overpaid CEO's wallow in not being rescued by taxpayers. Let's get the ball back on the court and concentrate efforts on straightening out the housing crisis. Push the First Time Homebuyer Tax Credit, pressure banks to employ forbearance efforts for troubled borrowers, move forward with the already in place FHA reforms that as of Oct. 1 are available, and let's take a long look at the abitrary actions of HELOC lenders in capping or eliminating lines of credit in order to accommodate their own selfish greed.
Mutt & Jeff my answer is NO!

Housing, Wall Street & the Mortgage Mess

George Sinacori (GES Real Estate LLC) — Sat, 20 Sep 2008 10:18:24 -0500

For any of us with any type investments, current developments in the financial markets have to be scary. Over the past few weeks we've seen government takeovers of Fannie Mae and Freddie Mac, we've watched both Lehman Brothers slipping into bankruptcy, Merrill Lynch on the brink of collapse and global giant AIG now being rescued by the Fed at a cost that could eventually exceed a trillion dollars. At the root of it all is housing and the "mortgage mess" as Treasury Secretary Henry L. Paulson has reminded us. These occurrences may leave some of us wondering if there ever will be a bottom to the housing prices. It seems that each time we think we've taken one step forward, it's actually two steps back. We don't know how or when these events will end nor do any of the so called experts. We know what the problems are and in hindsight why.

Now may be a great time to find out individually what can be done in order to help reduce at least some of our exposure to financial risk.

The problems that some risky mortgages have caused hopefully have taught us all a lesson about interest rate risk. This is something that can be controlled by applying for a fixed rate loan. If your taking a new mortgage a fixed rate means no risk of interest rate changes. If your in an adjustable now you may still have enough equity in your home to refinance it into a fixed rate.
Here's a little nugget for anyone with a little extra but not inclined to invest it in anything right now. If you put extra money beyond the monthly mortgage principal payment of a 6% loan you effectively earn yourself 6% by ridding some of that debt. An added bonus is that the mortgage will zero out sooner. Keep in mind that any added equity you put toward your mortgage may not be recovered easily as lenders continue to tighten up on home equity loans. It may make more sense to pay down other credit or add some more to a your employers 401k contribution, if your fortunate enough to have one.

Give me a call at 561 306-6736 or send me an email if you need some help buying or selling a property, obtaining a new mortgage or refinancing an existing mortgage. You can always find loads of info on buying, selling and financing at ges-realty.

HELOC Lenders Trampling Regulation Z

George Sinacori (GES Real Estate LLC) — Thu, 04 Sep 2008 10:27:28 -0500

Numerous consumer complaints regarding freezing or reducing the available credit on HELOC's or home equity lines of credit have gotten the attention of the Treasury Department, the FDIC and the OTS or Office of Thrift Supervision, a branch of the Treasury Department.

As home values in many areas continue to decline complaints continue to grow that some thrifts are freezing the credit promised to borrowers and that they may be altering accounts that were not supposed to be changed.

After receiving what OTS describes as an "uptick in complaints" regarding Savings and Loans reducing or freezing HELOC's, the OTC issued a six page letter to the institutions known as thrifts which spells out their obligations to HELOCs.

The letter of guidance may serve more as a warning to thrifts that they can freeze promised credit only under approved circumstances and not for broad geographic areas that may be harder hit by the housing slump than others. Each loan must be looked at individually in order to determine a "significant decline" in value. Regulation Z has interpreted and considers "significant decline" to be at least a 50% drop in the homes equity from the time the HELOC was issued.

i.e. Assume that a house had a first mortgage of $50,000 and appraised for $100,000. A $30,000 HELOC is opened leaving the available equity at $20,000. The creditor could reduce the available credit if the home value declined to $90,000 or 50% of the equity at the time the HELOC was taken.

The letter of guidance to thrifts goes on to outline legal risks to thrifts violating Regulation Z by stating:
"Regulation Z, which implements the Truth In Lending Act (TILA) sets forth the circumstances under which a HELOC may be terminated, suspended or reduced. Savings associations are responsible under Regulation Z for timely reinstatement of lines of credit that cease to meet the criteria for suspension or reduction." .............
"With limited exceptions, Regulation Z prohibits lenders from terminating a HELOC and accelerating repayment"
Exceptions include fraud, failure to meet repayment terms and actions adversely affecting the property.

For a copy of the six page letter go to GES Realty.

The FDIC has a hot line for concerned consumers 877-ASK-FDIC
The OTC also has hotline available at 800-842-6929

July Home Sales Increase as Prices Decline

George Sinacori (GES Real Estate LLC) — Tue, 26 Aug 2008 09:30:57 -0500

Homebuyers are taking advantage of depressed prices of existing homes. Home sales in July rose by 3.1% with many of the reported sales being foreclosed properties and private owners pressed to sell for less than they had originally paid for a home. The increase in sales is reported to be the largest single monthly increase since Feb. 2007.

Prices of existing or previously owned homes nationally were 7.1% lower in July than they were a year earlier according to the National Association of Realtors (NAR) as homebuyers took advantage of the lower prices and still favorable mortgage rates. Although sales have increased prices have continued to fall. The rule of supply and demand still applies and should continue putting pressure on prices as available homes for sale continue to outpace sales and more inventory comes on the market. . Anyone who does not need to sell quickly should wait until some of the dust settles before putting a home on the market.

Homebuyers may not want to wait to long on the other hand. It may be wise to grab up a property now considering some of the conditions that may affect buying ability or buying power over the coming months:

- On October 1 of this year FHA is required to have the ability to insure and refinance as much as $300 billion dollars in home loans for existing homeowners. This measure of the Housing and Economic Reform Act of 2008 could significantly reduce the number of homes entering the market over the last 3 months of this year.

- Interest rates are favorable now and may begin to rise as inflation becomes more of a threat.

- The First Time Homebuyer Tax Credit is available until June 30th of 2009. Taking advantage of buying this year allows the buyer to take that credit in 2008.

Anyone needing more information on available homes and prices in Southeast Florida can contact me directly either by phone 561-306-6736 or email at rebuygeorge@yahoo.com. You also may want to visit my website at ges-realty.com .