Foreclosures: Prime Borrowers Are The Latest Victims.

Prime Borrowers = people like you and me.

I have one client who, until recently had excellent credit, and lives in a  3000+ sq. ft. — 5 bd. / 3 ba–  home, which will soon be the property of the bank.  His retail business hasn’t just slowed, it’s fallen off the cliff.  The retail mall he is in is becoming a ghost town.  He has days when the cash register does not even ring.
He asked me to sell a small (around 800 sq. ft) 2 bedroom 1 bath rental that he owns free and clear and I was able to convince him to keep it.

He has taken my advice and is currently renovating the property and preparing to move into it.  Its a HUGE step down for him but I told him that when he’s done he will have the envy of many-a-man in Fresno (including me);  he will be living in a home he can call his own which places him among a small minority.

He isnt going to have those $3000.00 a month payments to make. HOW SWEET IS THAT!

Back in April I called:

FHA – THE NEW SUPRIME LENDER

Now I'm not alone.

Toll Brothers Inc. Chief Executive Officer Robert Toll said. “Yesterday’s subprime is today’s FHA,”

It's crazy!

It's OBSCENE!

A first time home buyer puts in an offer for quarter of a million dollar home, puts up $8750.00 and asks the seller (more often than not: A BANK) to pay the closing costs. Closes on the the home then gets a $8,000 tax credit.

Assuming you have the credit and income, buying a $250,000 home today is almost without risk and can be done almost entirely using OPM (other people's money)

BUYER HAS NO SKIN IN THE GAME ON A QUARTER OF MILLION DOLLAR HOME!!

THIS MAY BE GOOD NEWS FOR BUYERS, BUT IS IT REALLY GOOD FOR AMERICA???

What do you think?

... I'm up late with a toothache :(

Saturday and Sunday the Valley Historical Society had its annual Civil War Revisited in Kearny Park.  Yesterday I attended for my very first time.  I went for the 2:30 event after church.  I was really tired when I got there but once those cannons started firing my fatigue fled.  Below are a couple of my favorites captures.  If you would like to see more, click here to go to my website.

JUST CLICK TO VIEW 

GRUESOME!

Its Been a Beautiful Summer --- and as much as I feel its important to blog, I dont care to feel OBLIGATED.

 -- I'M BACK   ... and I am going to offer you  a link to some Commercial Real Estate Statistics that are very FUGLY!

CLICK HERE

COURTESY OF THE COMMERCIAL MORTGAGE SECURITIES ASSOCIATION.

If you're bore by stats and graphs -- don't bother with this one.  But if you are curious about the current state of the Commercial Real Estate Market, then have at it!

If you're thinking of cheating on your taxes by applying for the First-Time Home Buyer Credit -- BEWARE.

Today the IRS released news of its first succesful prosecution of fraud for doing so and the perp, who happens to be tax preparer, faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

Ain't worth it folks.

Read the press release from the IRS website: CLICK HERE

In a former blog I proclaimed we were in the beginning of the Great Depression of the 21st Century. [ GO HERE TO READ BLOG ].

Recent economic data indicates we are are on the cusp of a recovery, the only question is what kind of recovery. [ GO HERE FOR THE LATEST ECONOMIC DATA ].

For now, I'm going to stick to my guns.  I'm more inclined to believe we are in the eye of the storm then OUT OF THE STORM.  If so, what is to come, can wreak greater financial  havoc than what we've witnesses so far.

The Treasury is set to auction off 235 Billion this week and rates are creeping up.

Will bidders continue to buy, buy, buy?

if not -- the dollar will go bye, bye, bye.

Prices for homes in Fresno are looking attractive for investors provided rents stay relatively stable.  I'm personally scouting for some deals.

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