Hi Dave D, in the San Gabriel Valley & my fellow active rain associates,
Wishing you all well for the holiday season and for a better 2008.
In responce to Dave D. of the San Gabriel Valley, that the Sky is falling and what to do?
I can not afford to take my house off the market at this time, however I will tell you what I am going to do, however, before I do that, I want to point out a few things, why were here, and the sky is not falling, just correcting itself.
For months I have been telling people, that the foreclosure problem is only part of the problem, and not as bad as some people think. I feel very good about that data I have been assembling to convince some of our law makers that it's not as bad as most people think and that it's more media hype than anything.
This morning I heard Rush Limbau addressing one of his radio callers that 94% of the mortgages made are doing O.K. with their mortgages and that only 5.9% or so, are having some form of difficulty.
Normally, in any market, there is a 3-5% degree of difficulty with the mortgages made, due to many factors, such as Death, Divorce, Illeness, Loss of Job, or transfer or a dozen or so S__t Happens. What it looks like, only 1% or 3% are facing the problem with the sub prime loan debackle. Not the sky is falling.
When the media picks up on something that will capitalize on headlines, and politicians are not to far behind to follow, that usually is enough to the stampied the cattle (people) into believing the sky is falling.
I have stated this so many times to anyone who would listen or read, and finally catching on to a few ears and eyes.
In August I had indicated that the feds needed to be pro active, they did in deed do that, they supplied cash into the market place by lowering the discount rate. That helped B of A loan money to Countrywide (2 billion)
I also stated the feds needed to lowed the fed funds rate, they did exactly that on Sept. 18th, 2007, not enough in my humble opinion, but they did, they also lower the fed funds again on October 31st, and December 11th. I also stated that the federal government needed to raise the Conforming Loan Limits, they helped to a small degree a few days by increasing the FHA loan limits to Fannie & Freddie limits, and currently working on making California a high cost state so that we may be able to see some light at the end of the table.
Unfortunately, these moves are slow to making it into the system. I do thing that the federal reserve is partially to blame, on being to slow to act, but at least it's a start. I also think, that the federal reserve needs to back out of mandating so tight of restrictions requiring lenders to have all full documented loans. There are many business people such as ourselves, that greatly depend on stated income programs.
The need really boils down to educate the borrowers and and make consequences for those who willfully offer loans that are preditors of greed.
I myself, believe that we need to elect law makers that rationalize the pproblems and offer real solutions and not hinder or stiffel the growth of the nation. All of this, really a drag on the economy, and preventing many homeowners to sell, and making it harder for people to buy.
I myself am caught between a rock and a hard place, I had to foreclose on someone who took advantage of my generiousity, that which I bailed out on 3 occassions, unfortunate, the friendship is gone and looks like the stigma of circumstance will be harder to sell.
What I am going to do is; I am going to carry back a note & deed on a second for $152,000, someone coming in, can bring in the difference to the conforming loan limits, should have an easier time getting a mortgage. Hopefully, that will be enough for me to sell. It's a nice house, in a great neighborhood, near the La Mirada Golf Course. I will let you know if i Sell it. I beats losing it to the banks.
Good Luck, God Bless, and make it a productive 2008.
Carlos R. Arvizu Sr. proonounced R.V. Zoo
562-755-3856
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