We are in a recession, wait I think they are saying we are out. Doesn't really matter on an individual basis because you can choose to participate in a recession or adapt and go about living your life. I choose to adapt. I don't have the luxury of going to a car wash and waiting for my car to be washed anymore. I have found an alternative that not only saves me money but time and I get a little bit of exercise.

I know DIY (Do It Yourself) isn't a new concept in real estate but it was a forgotten concept when it comes to our cars. I just want to share this option with our local community because I have found it very beneficial. Zeavy Car Wash is a do it yourself car wash located at 520 S. Victory Blvd in Burbank between Verdugo and Alameda. This is one of those car washes we used to refer to as a Coin-op but they now take visa/mastercard or debit cards w/ those symbols. If you do swipe a card it's a minimum charge of $5 for 10 minutes. This is plenty of time for my Honda Accord. You will need coins for use of the vacuums. They have a spot free rinse that I use and I have to admit it works. I don't hang out and dry my car, I just drive off and I don't have any water spots or streaks. If you have change and are really fast you can get it done for as little as $2.25 for 4 minutes. I've done that a few times too when I just needed a quick rinse.

If you feel the need of tipping someone one to wash your car feel free to have your children help you. One of my fond memories as a kid was when my dad allowed me to help him with the car. Funny how parents can make work seem like fun and a privilege.

Yes you heard it right. If I'm not allowed to disagree w/ CAR and NAR somebody please warn me. The following is going to explain my position but I'm not going to break out any charts here. I believe in a free market and competition. Those two things create jobs, keep prices down, and create opportunities. When we as a government subsidize any industry we take away the free market influences that are used to maintain a productive and efficient industry. We also continue to reward those who can not run a successful organization. We have seen government organizations in the past become more and more inefficient and we have recently witnessed financial executives laugh at in the face of the taxpayer and use our tax money to pay out bonuses that were not earned or deserved.

Let me focus on the real estate industry before I lose you. Our industry got so caught up in making everyone a homeowner that we forgot that there are instances when the market drops. Consecutive years of double digit gains was one strong sign that this might happen. The availability of money and the easy underwriting guidelines made it possible for many to purchase a home. People who never would save money all of a sudden did not have to and they were able to get into a home with no vested interest. Hindsight is 20/20 and we all know now that this was a formula for a real estate crash. Of course there wasn't any government intervention because tax revenue, spending, and homeownership rates were climbing at a fast pace. Did anybody say wait let's allow for salaries to climb before we allow prices to continue to rise? No because who needs a wage when we have the availability of credit (sarcasm). Well the banks made sure to take that away at the first signs of a downturn just creating a snowball affect that eventually turned into an avalanche. Now we have this aftermath and the government feels like it is their responsibility to spark the economy. That's what government intervention does, it sparks the economy and once the flame gets going the government is supposed to pull back but the government never does it just continues to grow and grow to the point that it's so obese it's now taking food away from its taxpayers to keep itself alive. Wait I forget that we are a country that has grown used to living on debt and our government runs the same way.

We are now very dependent on countries like China to keep on funding us. We have enslaved ourselves to the Chinese. We now have a master and servant relationship instead of two super powers co-existing. I am not saying that the Chinese are evil I just have so much pride in our own country that I would love to see us be completely independent. In my opinion it would give us a stronger foundation for our economy.

Prices had already dropped significantly and combined with low interest rates the housing market was starting to see a rebound. Many renters waited for the market to come back down but because of the tax credit they now are competing against thousands of other buyers that would not have bought. I have had buyers that continue to lose multiple bid situations because the homes are selling for market value or they are competing against all cash offers. I am sure that this is not the same in every area and some areas are harder hit then my market. For those areas that are harder hit I feel for you but the government needs to focus on job creation before they focus on increasing values of homes. I don't mean to sound like the line in "Field of Dreams" but if they create jobs the home buyers will come. In the end our government needs to figure out how to get the money paid back for the tax credit and you guessed it, Mr. and Mrs. Joe Taxpayer will have a higher bill. The higher tax bill will result in less spending which will result in company lay offs which will probably result into another recession. I apologize for the run-on sentence but the government is driving me crazy. Let's get back to the days where we were held responsible for our own actions and if we took risks and failed then the failure was really just a lesson learned. We would bounce back stronger and wiser. Lord only knows I have my fair share of mistakes but I am still plugging away.

Once again another scam seems to have come out of this housing crisis which seems to be in recovery mode. Recently Senate Bill 94 was introduced to keep any and all companies doing loan modifications from charging an advance fee. My understanding of the bill is that companies can not charge up front fees not that companies can not continue to work on modifications for clients that had already paid. Here's a copy of the bill for you to read yourself, http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_bill_20091011_chaptered.html.

Recently I learned of a company that has decided to pull the plug on clients of mine and they are blaming SB 94. They said that because of the bill the DRE does not allow them to continue to work on their customers' files and will be filing bankruptcy. Sounds fishy to me and so I thought I should share some resources with anyone who feels that they have fallen victim to this company and/or any others just like them. The company I am referring to above is Green Credit Solutions who had recently changed their name to Guardian Credit Services. When I first met with this company they seemed to be on the up and up. They were licensed w/ the DRE and they were telling brokers that they had an advanced fee agreement approved through the DRE. Clients of mine that decided to use them instead of doing it on their own like I suggested had different results. Some received modifications and others have been left out in the cold. One of them was even told to take cash for keys as part of their refund. 

The DRE has published the following for people who feel that they are being scammed or have been scammed. For those of you who paid I strongly recommend getting in touch with the state's attorney general or the FBI. http://www.dre.ca.gov/pdf_docs/FraudWarningsCaDRE03_2009.pdf

You were convinced to get off the fence and start searching to buy a home. Maybe it was even me who convinced you using the low interest rates, depreciated values, the first time homebuyer tax credit, or any combination of all three. The only problem is that thousands of other buyers were also convinced. Now the deadline for one to qualify for the tax credit is right around the corner and there isn't any certainty that a short sale will close on time and traditional and REO listings are getting multiple offers that you just can't find yourself getting the winning bid.

This experience can be very frustrating. You look for someone to blame and naturally we blame our agents. These Realtors aren't doing their job. They say they can sell a refrigerator to an Eskimo and they can't convince the seller to sell to me. As agents we understand the emotions that one can experience and we know the blame game comes with the territory. We will do our best to hold your hand through the process and educate you to what is happening in the market. As Realtors we are looking after our client's best interest first and not after our own pocketbooks. With that said let's keep in mind that we also have bills to pay and would love to get you in a home as soon as possible but we are going to guide you in making the best decision possible and not exceeding your budget or the market value of the home.

Why do we care that you stay within your budget? Let's look at the current environment. Many people exceeded what they can afford and look at what has happened to the market. Instead of consistent growth we had rapid growth with rapid decline and that has affected our economy in a negative way. People that lose their homes blame their lenders and their agents. Looking at the condition of some of these foreclosures you can tell that the previous owner took their frustration out on the house. Last thing I want as a Realtor is for this to happen to someone and for them to tell their network of friends and family that it was my fault. Those Realtors that think this way are still practicing real estate today.

Why do we talk you out of making offers above market value? If the value comes back lower than was expected than the lender is only going to lend to you based on that value. So if you really want the home you will have to tap into your savings and cover the difference. This is not advisable because any financial planner will tell you that you should have an emergency fund. Buying your new home is going to result in a lot of expenses and some impulsive ones because you noticed that one wall needs a frame and the entry way needs a vase and don't forget the new dining set. The last thing you want to do is rely on credit cards to make these purchases. The people bidding most likely have that extra cash. I don't mean to sound cliché but in this market it is true when they say, "cash is king".

I truly believe that the right house is out there for everyone. I always go back and ask more experienced people their opinion on what is happening today. Here is what I have learned. Some of our parents, most of our grandparents bought things they could afford. They were taught to save for their purchases and budget their money. They did not need a tax credit to convince them to buy. You do not want to get caught up in a bidding war just to receive that tax credit. Does it really make sense to overpay $8k plus to receive $8k. If you are financially ready to buy then a good deal will present it. If you do not make the deadline for the tax credit, that might result in buyers leaving the market and therefore you not getting into a bidding war. You might actually save more than $8k from being patient. One other thing I learned and this was from my own parents was that it took them 2 years to find their home. Mortgage interest deduction for my father did not matter cause with three boys to claim he had enough deductions on his small salary. They bought because it made sense to make a mortgage payment rather than paying someone rent. They bought when they had enough money saved up to make a decent down payment. They paid off their mortgage years ago because they lived within a budget. They are debt free and have little to worry about during retirement. My parents migrated hear from Guatemala and worked their butts off in jobs that most of us will not take but have more financial literacy than their son who has a graduate degree.

Patience will pay off so continue to work with your Realtor and if that means that you have to rent a little longer than consider it a blessing to continue to save money and get a better deal down the road.

As we get ready for back to school and other activities we get a little overwhelmed. Please remember our primary focus is the safety of our kids. Please talk to your children about good touch and bad touch. Let them know that it is okay for them to talk about anything that makes them uncomfortable.

Many child predators look at volunteer jobs as a way to get closer to children. Make sure that you monitor any programs where your child is participating. Make sure these programs require criminal background checks for anyone that has access to the children. As a parent you must make sure that you have had some face to face time with any coaches and volunteers. Also make sure that there is a written policy about how to deal with the prevention of any molestation or abuse issues.

As a parent, volunteer, or teacher you must get familiar with any warning signs. It is our responsibility to report and bring forward any suspicious behavior. Here are a few that predators may use:

• Always wants to be alone with children.
• Too much touching.
• Allows children to participate in activities that you would not allow.
• Shows children pornography.
• Bad language or dirty jokes around children.
• Gifts to children without your permission.

If you are aware of some of these signs and participate in your children's activities you will decrease your chances of your child being a victim. Communication with your kids and communication with the people involved is crucial. I don't like to write about these types of things that scare people or set a negative tone but I hate to hear about child abuse even more. Please do all you can to keep our children safe.

The loan modification business must be the only booming industry right now. Unfortunately it's out of control. I believe in the concept of banks working with borrowers to help them stay in their home but these hard times have opened the floodgates to many vultures.

These people are generally the same people that helped put many borrowers into option arm loans. Option arm loans were loans that paid up to 3% rebates and to the mortgage broker and it gave borrowers 4 payment options. The options were a 15 year amortized payment, 30 year amortized payment, interest only payment, and a negative amortization payment. Guess which payment most borrowers chose? Ding ding ding, you guessed it the negative amortization cause it was the smaller payment. This type of borrowing inflated prices and put many people in a home that they normally could not afford.

Now these same people are charging borrowers up front fees to "save their home". If you go to http://www.hud.gov you can click on the programs offered by HUD to modify loans. Yes these programs are difficult and there's a lot of running around that one has to do but you are asking a lender to modify a contract that you agreed to. Yes some people would rather pay upfront to get this done but then they risk dealing with a company that might be a little shady. Many of these companies claim to have an attorney represent you but they actually are an assembly line of people using the name of an attorney in case anyone wants to know. 

I am not against companies getting paid upfront fees for offering a service but since we do pay taxes for a Department of Real Estate (DRE) than I want them to protect the borrowers. I always say that the government's priority is our defense and to protect us from fraud. People now are so desperate that they are willing to pay almost anyone with a good sales pitch. The DRE needs to start cracking down on these companies and make a list of service providers that have proven to be on the up and up. They could all start by getting licensed by the DRE and making sure all of its representatives are licensed.

The people of California need the DRE to be proactive and we as real estate agents need to continue to reach out and let these borrowers know that they have options.

To all the wonderful mothers, grandmothers, aunties, and anyone else who helps fill the role. Mothers are the foundation of many families. They provide strength, support, sensitivity, and let's not forget good meals. We take one day out of the year to honor them but they deserve to be honored everyday. My own mother, Miriam Villagran, is one of the strongest women I know. I look at her for inspiration because she is like the Energizer Bunny and just keeps going.   

In all honesty I had lost my faith in the new generation of moms because of my own experience w/ my kids' mom 8 years ago. I thought most young moms were selfish and didn't think about the overall well being of their family. Keep in mind I was not as social as I am now and I was working in accounting for a small business. Basically I was in my own little world. We all hear the old saying that things happen for a reason and what has happened to myself and the kids has opened up our world.

Being a single father I was forced to make decisions that would create a better balance for the kids and I. I now had to try to attend as many of their events as possible and continue to bring in income without fearing losing my job for asking for all the extra time off.  This is how I came into real estate over 4 years ago. It was a perfect fit for my financial background and it allowed me more flexibility so that I can be active w/ the kids. Most importantly I had a lot of friends step up and help me. My close girlfriends are like aunties to my kids and they play such an important role, especially with my daughter. Because of these women my kids are really well balanced.

My career in real estate has forced me to meet a lot of new and old friends. I once was uncomfortable with social networking and if you are a friend on facebook that statement will shock you.  What I love about these friendships is that it restored my faith in women. You women are great mothers. Yes I mean all of you even if you don't have your own kids yet. Children look at you for strenght and sensitivity and yes sometimes the men do too. You are able to balance your lives a lot better than men ever could. I am so happy to see many old friends that now have their own beautiful families and are doing such great jobs at raising their children.

Mother's Day is just the day that is dedicated to you on the calendar but remember that everyday is Mother's Day and your role in our lives is very much appreciated.

Happy Mother's Day!!!

This will be the first of a multi-part series on getting ready to buy your first home. As I continue to meet new prospects and people who have never tried to buy a home I'm amazed at how necessary it is for us as Realtors to educate our clients. This education is key to not only get them in their first home but to keep this home.  I am usually asked what is needed from them to buy. I can go into getting pre-qualified first and knowing your credit score but I was thinking about this more and I realized that pre-qualification is not the first step. Let's face it we just passed a cycle where a good credit score could have gotten you any loan and finally it has tightened up. So what is the first step?

The first step should be to establish a budget. I do not mean just come up with a figure in your head and say well I can afford so and so amount. I mean actually sit down and figure out all of your income sources and your expenses. So many times I saw people go from renting for $1000 a month to a mortgage of $3000 because they thought that is what they could afford. I think many people were blinded by the increase in values that they thought they were willing to sacrifice enough to make that mortgage. Once values dropped then so did the sacrificing and they walked away. The truth is that if you can afford an increase in monthly payments of $2000 then you should be able to show that you are saving $2000 per month in either a savings account or other investment vehicle.

A budget will help you find where your money seems to be disappearing. For many it's a wake up call and they either realize that they eat out too much, buy too much gourmet coffee, or even pay too much in ATM fees.  Once you have a budget and have made the necessary adjustments to your lifestyle then you will see how much disposable income is left. Set up an emergency fund that covers about 3 to 6 months of living expenses. Once you can do that you are ready to start looking into buying your first home.

Next we'll cover paying down your debts and increasing your FICO score while working w/ a reputable lender.

Just wanted to remind everyone that the home buyers tax credit to purchase a home in 2009 can be claimed on this year's tax returns. If you have already filed you can always amend your taxes. This is a refundable tax credit up to $8000. Call me for more information at 818-416-7511, leave a comment here, or email me @ mario@usspaces.com.

So President Obama says that AIG represents inappropriate use of tax money. This is just like me giving the homeless guy off the freeway off ramp with a sign "need money for booze" some money and getting mad cause he bought some booze. We knew that these guys were unethical before the first bailout and then they threw a huge party and we continued to give them money.

Mr. President the true inappropriate use of tax money is how our politicians just continue to hand it out and reward bad behavior. Yes it is true that he has inherited this problem but now that you are in charge please listen to the American people and let us get back to a free market. Our government is responsible for protecting us from fraud and prosecuting those that defraud us. Instead of prosecuting we just keep giving them a check.

We complain that we are at a disadvantage when it comes to trade. When they have these G20 conferences what is it that they talk about? Are they not trying to even up the playing field? We just did the same thing that we complain other governments do and subsidized an industry. We need to lead by example and let the free market take its course.

Listen to the American taxpayers. We believe in the United States and we know that we will rebound. We believe in taking risks and learning from our mistakes. We do not believe in our hard earned money being used to reward failure. The only ones benefiting from these bailouts are the highest income earners. I thought the democrats platform was based on helping the middle class and yet the middle class is about to pay the biggest price.