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Suzy ORMAN on Real Estate

Thought this was interesting... spoke with a client yesterday who said she wasnted to SELL - but SUZY said DON'T! Tried to explain to the seller that we don't live in one of "those" areas...

Posted by Eleanor Thorne 919-649-5057 Cary Mortgage Loans on 01/08/2008 02:28 PM

Comments (16)

selling houses cary, home loans raleigh, real estate cary, mortgages raleigh, mortgages cary

Originally posted at: Mortgage Lending, NC Style: Suzy ORMAN on Real Estate

This post has been included in North Carolina Information Wake County, NC Information

16 Comments on Suzy ORMAN on Real Estate

JAN

2008

Well, isn't that special. Thanks for posting.

Susan

Is coming on with a lot of steam lately. She makes a lot of sense.

Thanks

Tom Braatz

Every market is different her statement is general in my market , the price point have not drooped as the media talks about them

How depressing - notice that she doesn't say what "those areas" are, and she doen't recommend consulting with a local expert (your neighborhood realtor). At least she says it's a good time to buy, but once again, depending on your area, in some places an offer of 98% of asking price is a great deal, in others it's 80%.

C'mon, Suze, you know all real estate is local! Making blanket statements about how to behave in any market, especially when you're a nationally recognized expert, can hurt as many people as it helps(sigh).

Gosh, she's a big help. Isn't she?

Rich - In the Raleigh market - you CAN NOT offer 2002 prices and get more than a HUGE laugh!

I guess you just look at it for what it is:) Her opinion. Don't listen to her tips if she is hurting your business:) Then, she will feel your power.

Suze blew her credibility, whatever she had.

Completely irresponsible histrionics.

Good thing we have YouTube for documentation of that sort of behavior.

And I thought it was just for drunk college kids...

JAN

2008

People get so "hung up" on an advisor - then every word they say is TRUE! I'm glad Oprah hasn't started talking about the Real Estate market doom and gloom .... at least I haven't heard

Mike - Kim : You guys are right! THe LAST THING we need is for OPRAH to start talking about who AWFUL things are! There are really only 7 areas that are in bad shape - its' a big country!

Suzy gets on my nerves. I have, on occassion, watched her advice and I just have to laugh. First of all, alot of the situations that are posed can be answered with "duh!". For instance, I have a $300,000 mortgage, I owe $75,000 in credit cards and am starting to pay only the minimum, but I was wonderfing, should I buy the $50,000 boat (on credit) and pay to store it at the lake?

As for her real estate advice? The market is LOCAL! Why there is an overall, intertwining theme nationally, it is localized. Eleanor, you and I both live in a thriving, healthy market, we both know that. Um, should a seller sell? "Duh!" While I am hit every now and then with the low ball to no ball offers my sellers, for the most part, are receiving offers fair enough to open the lines of communication.

Lessa! As always I love your FRANK approach! How do ya' REALLY FEEL??

There is sooo much drivel out there passing itself of as advice or knowwledge. I particualrly enjoy the cable nes passing the opinion of a bystander off as a news item... or the opinion of a hack which is even worse... but the scary part is people watch, listen and believe.

JAN

2008

Suzie -- 2002 prices - how are we ever going to get anything accomplished? I will tell you something I have been experiencing sellers are willing to negotiate in the Raleigh Market. Sellers are under selling just to move on.

FEB

Those Americans that lived within their means and have met or are meeting their obligations should not have to assume someone else’s burden. Many Americans find themselves in bad situations but should be willing to pay on the terms of their mortgage they agreed to. This is true also with investors on Wall Street. Those who took risk need to assume the risk before any burden is transfer to non investors. Investors in banks and bank stocks have not been held to account do to the rush to TARP 1. With the necessity of mortgage mitigation legislation of some sort on the horizon, Mortgagees should use their own monies and pay their own way first. Legislation to help mortgagees could include access to retirement savings plans. Forgiveness of the 10% withdrawal penalty could be used as a form of Federal aid. Since ultimately the American tax payer is going to assume the cost to mitigate mortgages, relieving the penalty would not require any up front appropriations. The recapture of the remaining taxes liability should be allowed to be spread over the remaining years before actual disbursement is to begin. Basically it is a loan to yourself and the Federal penalty relief aid comes with no loss of the revenue of the actual tax due. There may even be a gain of revenue since the tax rate is paid at that year’s income levels instead of the assumed lower rate upon retirement. That was the real basis for retirement saving plan in the first place. If the economy and incomes rises during the recapture period so should revenue. I think a tiered approach should be taken for mortgage mitigation. Tier 1 is persons who have a retirement savings in excess of full payment remaining on their mortgage. Allowance to withdraw up to that amount should be allowed. With no mortgage left to pay on, their personal liquidity should than be allowed to be use to repay their retirement savings account back against their recapture tax burden as incentive to further return liquidity to the market. They should be allowed to accelerate repayment of future years tax repayment with the incentive being the quicker it is returned the quicker they should see returns. Tier 2 should be granted the above repayment options And is persons who have a retirement savings less than full payment of their mortgage. Allowance to withdraw up to the amount needed to refinance to an affordable mortgage with these criteria: A 4% fixed rate loan (no longer in term than the remaining years between their age and age 59 ½) and not to exceed 35% of their net income. This should help keep equity in line. If these requirements can not be made by those persons chances are they had already purchased a house they can not afford and would fall into default again plus lose any retirement savings. All banks and or leading institutions who have or will receive TARP type taxpayer funds should be required to make these loans available, must hold the loans themselves, charge no more than $750 in doc fees and 0 points (loan origination) fee. They would be given a 1 point federal tax write off for writing the loan for that year. Tier 3 is persons who have no retirement savings but meet the rest of the tier 2 personal requirements. Banks and or leading institutions could be given a 2 point write off to help the most disadvantaged. If there are banks that have not received TARP fund and are willing make these loans they should be given the 2 point write off in helping either tier 2 or 3. Bottom line the taxpayer winds up underwriting the points to free up capital get it circulating again by using personal savings to pay personal mortgage debit and then returning it to their retirement saving. Is this not what saving for a rainy day means? I’m sorry that there are going to be some losers. Those who are upside down can only be helped once the market stabilizes.

JUN

Thanks for your suggestion. Nice post thanks again :)

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