Sal Gutierrez's (sal_g) Blog

Buyer Beware!- Make sure Community is FHA eligible

Sal Gutierrez (liberty one) — Thu, 20 Nov 2008 11:47:49 -0800

We do a lot of FHA loans and this is critical to know before you make offersOne of the most popular type of financing used here in Greater Phoenix, Glendale, Peoria, even Scottsdale is FHA financing. FHA financing here in the valley has really picked up steam as of late with the rush to take advantage of Seller-Assisted down payments or charitable down payment assistance programs like Ameridream, Nehemiah and Grant America (GAP). The Down payment assistance programs have been banned by the recently passed Homeowner Rescue Act and Down Payment Assistance will no longer be funded as of October 1st, 2008. In fact, you should note that banks will no longer be accepting loan applications at the end of this month, August; Some bigger banks are no longer accepting them period. One of the challenges facing approval of an FHA loan and use of Down payment assistance is that the community must be FHA eligible. What does FHA eligible mean??? First, let me give you a story. Agent took buyers to see a home which they loved The listing agent confirmed that the community was FHA eligible Buyers made an offer which was Accepted. During underwriting the bank tell buyer that community is Not FHA eligible. Buyer cannot obtain FHA financing Client is now 2 weeks into loan process down payment assistance deadline is coming up quickly. Must find replacement home by end of August or not get FHA loan Maybe not buy a home at all if cannot get FHA loan and Down Payment Assistance What does FHA eligible mean??? There are several guidelines that must be met to be an FHA approved community. However, the primary one to look for is that more than 50% of the homes sold in the community must be owner occupied. In most parts of the country this is not something to even consider. However, in most of the towns around Phoenix this is can be a difficult hurdle to overcome. Especially, in the Condo conversion market where the community was 100% rental and was converted to Condo sales. Often times the developer did not sell 50% to owner occupants. Thus, there is a a much greater proportion of rentals than homeowners. In new home sales and new build subdivisions a similar challenge arises. Although, Builders have all lots and homes available for purchase. In many cases 50% have not been sold when lot sales begin in the first many months. I encourage you to ask your real estate agent do the research for you. Do not assume because the community has been around a long time that it is more than 50% sold to owner occupants. Most residents and even many sales agents who work in these communities do not know. If you are going to use an FHA loan, find out first; Before earnest monies are non-refundable and eligibility for loan approval is denied. _______________________________________________________ Copyright © 2008 By James Wexler , *Buyer Beware!- Make sure AZ Community is FHA eligible * Contact James Wexler (480) 221-8080 for all your Phoenix AZ | Scottsdale AZ Real Estate needs

Short Sales Suck ! - 7 Reasons Why!

Sal Gutierrez (liberty one) — Fri, 14 Nov 2008 06:59:06 -0800

With all the REO properties on the market, there is little reason to deal with short salesShort sale specialists will tell you that you are missing the boat if you are not involved with these transactions in the greater Phoenix real estate market. I completely disagree!! Here are 7 Good Reasons not to get involved with short sales. Average time to get acceptance (or more likely a denial) from a lender is more than 75 days. Some agents say longer. There is no guarantee the offer will get accepted at or near that price because the majority of Realtor list homes at random arbitrary prices that they think or hope the banks will accept. estimates as high as 80%, some say 90% of offers on short sales do not consummate in a closed escrow 3 month waiting periods prevent buyers from looking for other houses which often result in opportunities lost. REO /lender owned listings are now priced as well or better than short sales. Make your offers on these homes. Lenders are more inclined to reject offers that do not have financing with large down payments. Many FHA offers are rejected due to high decline ratios and lengthy underwriting times. Banks are just not cooperative. In most cases, they prefer to reduce current REO inventory. Further, they can often collect PMI from insurers if the home actually is foreclosed upon. I have prepared short sale packages for approval for sellers. I have negotiated contracts with bank asset managers. I have represented buyers with success. I have watched buyers wait and wait and miss out on other opportunities. If you are thinking about buying a home, skip short sales. They Suck! Instead, make offers on the many REO and lender owned properties on the market. There are REO at as much as 50% discount to 2005 prices in Phoenix, Scottsdale, Carefree, Peoria and Fountain Hills. _______________________________________________________ Copyright © James Wexler *Short Sales Suck ! - 7 Reasons Why!* If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done. Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short Sales

Build My New Home better and Cheaper, or I will find someone else who will!

Sal Gutierrez (liberty one) — Wed, 05 Nov 2008 07:24:40 -0800

I hope all builders, suppliers, laborers work together to make homes more affordable.Increasing competition, tightening profit margin, access to consumer lending has forced new home builders , smaller Scottsdale area builders, to the larger new York stock exchange public builders to rethink and take a sharper pencil to their costs to find profits (or minimize losses). How are the Home builders constructing homes cheaper and in theory better quality ? The layman's language is Build my Phoenix area home with the same quality, functionally, and safety, with modern materials for less. The industry term is what is known as "Value Engineering" and is presenting a unique opportunity to the Pheonix area buyer. What is it ? Value Engineering , as it relates to Home building, is an analysis of the cost of building home and how one can reduce cost and provide an equal product at lower cost. Primarily, this is done in 2 main areas. ( Click here to find out how ) ...

Can anyone really still flip houses

Sal Gutierrez (liberty one) — Mon, 03 Nov 2008 09:44:57 -0800

The White House temporarily suspends "flipping rule that imposes a 90-day waiting period before foreclosed homes can be sold in order for these buyers to receive FHA (Federal Housing Administration) insured loans. According to the release, ... "For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans" as "part of an effort to help speed the sale of foreclosed properties". In Maricopa County, Metro Phoenix, we are suffering from some of the highest foreclosure rates in the country. In fact, the foreclosure rate has nearly tripled since 2007, according to research firm RealtyTrac. As a result, it is imperative that buying restrictions are eased and tax advantages are offered to excite homebuyers to purchase foreclosures, short sales, bank owned real estate, REO properties and resale homes. Until the supply of homes is reduced, it will be difficult to see any improvement in sales volume and sales price. Further, foreclosed homes cause wonderful communities and its residents suffer as they wait for a recovery. Mr. President, this is a move in the right direction in what I hope will be many initiatives, by the Federal Government to legislate changes to stimulate real estate buying and prevent more foreclosures. Americans are not asking for a 'Bailout'. However, struggling homeowners across the country implore you to consider a bi-partisan bill that will support the American Housing Rescue and Foreclosure Prevention Act , and the needed Rescue Plan that will be voted upon today in the Senate and tomorrow in the House of Representatives I encourage you to support legislation that would stimulate buying and would have lenders ease struggling homeowners' loans and make Federal Housing Administration refinancings more widely available.

Home Prices Drop 5.9% in August

Sal Gutierrez (liberty one) — Thu, 23 Oct 2008 08:21:24 -0700

A government report says U.S. home prices fell a record 5.9 percent in August from the same month last year. The Federal Housing Finance Agency also says prices, on a seasonally adjusted basis, fell 0.6 percent from July to August. The index is down 6.5 percent from its peak in April of last year. The government index is calculated using mortgage loans bought or guaranteed by the government-controlled, mortgage-finance companies Fannie Mae and Freddie Mac.

'Cash-Back' Deals and Mortgage Fraud

Sal Gutierrez (liberty one) — Wed, 22 Oct 2008 15:42:40 -0700

I have been hearing more and more stories of buyers approaching sellers with offers that include "Cash-Back". Why is this white collar crime and mortgage fraud making a re-occurrence? - Buyers are taking advantage of 'desperate' sellers hoping they will cross the line to do anything to sell a home. Let me be clear that it is illegal. Period! In fact, on June 19th, the FBI charged More Than 400 Defendants Charged for Roles in Mortgage Fraud Schemes as Part of Operation "Malicious Mortgage. A cash-back transaction scenario is where a buy pays more than a home is worth with the extra money being paid from the seller (outside of escrow) back to the buyer Wikipedia defines Mortgage Fraud Cash-Back Schemes: "The buyer and seller or the buyer and real estate agent collude to deceive the lender as to the true sale price of a property. The seller or the real estate agent gives the buyer a cash rebate which is not disclosed to the lender. As a result the lender lends too much, and the buyer and/or seller pocket the overage. This scheme usually requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability" Here is a Cash-back Scenario" Homeowner lists home for $320K Buyer approaches seller and offers to pay$400K and ask for $80K extra paid back to the buyer after and outside the escrow. Seller agrees as still receives the $320K net they had hoped Buyer is able to put down 20% on $400K ($80K) and receive a 30-year fixed mortgage with no PMI (private mortgage insurance) Buyer then receives the $80K back after the close of escrow; thus, getting a fixed rate, no PMI mortgage with no money down. other situations are buyers putting down $40K and getting $40K cash back in the buyer's pocket. Buyers are committing fraud. Buyers and sellers are inflating home prices which as the recorded sale becomes a 'Comp'. Houses usually go into foreclosure further hurting the housing market. Banks and shareholders take the losses. Losses are passed on to fair dealing consumers in higher rates and fees and stricter lending guidelines. All of these prevent buying; Lack of buying causes prices to fall or prevent recovery. The Land 'Gold-rush' in Phoenix of the last 10 years saw the unfortunate proliferation of many unscrupulous brokers , appraisers, mortgage brokers, buyers and sellers who participated in cash-back schemes which hurt the honest majority and contributed to the large amount of foreclosures in metro Phoenix and many of the surrounding towns including Scottsdale, Tempe, Peoria, Gilbert, etc... If you are approached with such a cash back deal or know of participants email: px_cashback@ic.fbi.giv Thanks for helping the 99% who are contributing to your housing market and national economy. For further details ask your local experts on Active Rain: ---------------------------------------------------------------- Related Posts Buy a New Home in Phoenix cheaper than Builder Cost What Does Credit Crunch Really Mean to Phoenix Home buyers Don't Go out and look at Real Estate ------------------------------------------------------------------------------------------------------ Copyright © James Wexler, All Rights Reserved. *'Cash-Back' Deals and Mortgage Fraud* Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale Real Estate needs

We will have to cut back

Sal Gutierrez (liberty one) — Sun, 12 Oct 2008 09:47:58 -0700

-- Americans are more reliant on debt then ever before. The portion of disposable income that U.S. families devote to debt hit an all-time high in the second half of last year, topping 14 percent, figures from the Federal Reserve show. When other fixed obligations -- like car lease payments and homeowner's insurance -- are added in, about one of every five household dollars is now claimed by bills. The credit card industry lobbied heavily in 2005 to tighten bankruptcy laws to make it more difficult for consumers to seek court protection and shed responsibility for paying off debt. But in a sign of just how much households have become dependent on borrowing, the average amount of credit card debt discharged in Chapter 7 bankruptcy filings has tripled -- to $61,000 per person -- from what it was before the law was passed. "We are going to have to cut back," said Dean Baker of the Center for Economic and Policy Research, a Washington, D.C. thinktank. "We've really been living beyond our means." -- Americans, borrowing to cover ordinary living expenses, have all but abandoned saving.

the future of loan shopping - “Rate Window “

Sal Gutierrez (liberty one) — Sun, 12 Oct 2008 09:46:01 -0700

On of the most puzzling , confusing and secretive little corners of the financial world is mortgage rates ; and how you can get the 'best' available rate for your personal credit and financial situation. Mortgage brokers perform a very important function. However, when it comes to what rate you are paying, I don't know anyone (outside the industry) who knows how they are quoted and/or how mortgage brokers are paid. With the recent meltdown of the sub-prime section of the lending industry and re-setting of adjustable rate mortgages, there is now, more than ever, a call for more and more disclosure of how the industry operates, detail of loan structures, broker payments and rate transparency. I need to point out that 99% of the mortgage brokers are honest, hard working, care about the clients best interest and provide an important service to the real estate and lending industry. I can without hesitation recommend many. Unfortunately, there are always a few bad apples that spoil the bunch for the rest. There are efforts from the government, to the major web sites, to smaller tech savvy entrepreneurs to address the challenge head on. One of the best, products to come to the lending market is just recently launched by RealEspace called "Rate Window" which I like to call the future of loan shopping About Rate Window: Mortgage bankers and brokers and real estate agents can now offer this transparent pricing tool to their clients through their websites or blog-sites. The paradigm shift has begun for how consumer's will price their mortgage loans. Transparency is now available to the public as never before! They will no longer need to negotiate with their mortgage banker or broker like a used car salesman. The window is open (RateWindow) to the world of wholesale mortgage rates where the public can't be manipulated on the cost of their mortgage loan. Mortgage bankers and brokers and real estate agents with vision will join in on this first to market rate pricing engine so they can wear the white hat. For more about Rate Window and how it can benefit home buyers, mortgage brokers and real estate agents, please call or email Matt Dunlap In my humble opinion, Rate Window is the future of the mortgage industry. More transparency and disclosure is always a good thing. It instills trust and confidence for the consumers and public. Most importantly, transparency protects everyone involved before a situation occurs; not after a problem arises, often before it's too late.

say goodbye to easy credit

Sal Gutierrez (liberty one) — Sun, 12 Oct 2008 09:45:12 -0700

Is America's long era of easy credit over? Experts say that even when the current credit crunch eases, the nation may finally have maxed out its reliance on borrowed cash. Today's crisis is a warning sign, they say, that consumers could be facing long-term adjustments in the way they finance their everyday lives. "I think we're undergoing a fundamental shift from living on borrowed money to one where living within your means, saving and investing for the future, comes back into vogue," said Greg McBride, senior analyst at Bankrate.com. "This entire credit crunch is a wakeup call to anybody who was attempting to borrow their way to prosperity." A prolonged period of tighter credit is ahead, experts say. U.S. consumers will find it much harder to get a credit card, and to carry large balances. Late fees will rise and lines of credit will be reined in. After years of buying homes with interest-only loans, or loans that allowed people to borrow more than the value of the home, substantial payments and downpayments will be required. Interest rates are also likely to rise. Lenders, far more wary of risk, have tightened the standards they use to judge potential borrowers

pre-foreclosure tips & advice

Sal Gutierrez (liberty one) — Sat, 04 Oct 2008 06:28:24 -0700

Here's what you should do 1st. Contact your lender to make them aware of the pending problem. You may be surprised of their understanding and willingness to work with you to keep you in your home prior to a bank foreclosure. If you contact a Realtor. Make sure you work with a foreclosure or short-sale specialist. It is a complicated, time consuming process which requires a lot of communication and due diligence with your lender. Try to remain as stress free as humanly possible. It is an emotional time. You did not do anything wrong. You are not alone. You will get through this with the other 3 million Americans.

Do your research on-line 1st!

Sal Gutierrez (liberty one) — Sat, 04 Oct 2008 06:27:12 -0700

More than ever, consumers start their home buying (or selling) process on-line. A great idea, and something I recommend. However, I also suggest that you enlist the tools of more specialized and localized professionals, Realtors, neighbors, news outlets, etc... to either confirm or help assimilate all the information on hand. Real Estate is not (yet) like stocks and bonds. Real Estate is not a commodity. It is a tangible asset. An emotional bond. Decisions are made with the heart as well as the mind. Numbers are critical. However , for the most part, numbers, charts, graphs alone cannot completely replace the emotional and human aspect to real estate. I encourage you to use the information on-line

short sales - no easy feat!

Sal Gutierrez (liberty one) — Sat, 04 Oct 2008 06:25:54 -0700

These are 3 main problems why Short-Sales are getting more difficult. Most solutions, such as Forbearance, Deed-in-lieu of foreclosure and short-sales require lender approval and negotiations. However, as David and Bill point out, many lenders are shutting down the lines of communication. As Lynn Frantzen points out in "Short Sales and mortgage insurance" , If a lender has mortgage insurance such as PMI , (Private Mortgage Insurance) they can collect money on insured loans if the home is foreclosed upon. Finally, Mortgage insurance companies and Lenders , in a sense, denying short sales by aggressively insisting that the deficient monies be paid back. Read Brain Brady's Guide to the effect of mortgage insurance on short sales.

some words of advice before you buy

Sal Gutierrez (liberty one) — Sat, 04 Oct 2008 06:25:07 -0700

some words of advice before you buy... !! Make sure you sell your home first. Especially, here in Phoenix and Scottsdale. Remember, you cannot control the price a seller will pay. However, you can control the price you pay. Thus, only after you sell your home. Evaluate the less amount you had hoped to receive and make offers with that in mind. You may very well own the new home at a less amount to offset the monies you had hoped to receive when you originally listed your home.

Wachovia gone - who;s next?

Sal Gutierrez (liberty one) — Sat, 04 Oct 2008 06:21:25 -0700

A battle broke out Friday for control of Wachovia, Wells Fargo agreed to pay $14.8 billion for Wachovia bank . The surprise announcement that Wachovia Corp. agreed to be acquired by Wells Fargo & Co. in the all-stock deal -- without government assistance Only four days earlier, Citigroup Inc. agreed to pay $2.1 billion for Wachovia's banking operations in a deal that would have the help of the Federal Deposit Insurance Corp. Citigroup, which demanded that Wachovia call off its deal with Wells Fargo, said its agreement with Wachovia provides that the bank will not enter into any transaction with any party other than Citi or negotiate with anyone else. Barring legal action, the future of Wachovia will be determined by the bank's shareholders and regulators, which both have to approve a final deal.

real estate values will not recover overnight

Sal Gutierrez (liberty one) — Sun, 28 Sep 2008 08:07:26 -0700

Put simply, the hastily crafted plan lawmakers agreed to in principle on Sunday is intended to revive jittery and fragile banks on Wall Street with enough money -- by using taxpayer funds to purchase billions upon billions of their worst mortgage-related assets -- so that lending, the lifeblood of the American economy, flows freely again. If it is working, signs will emerge almost immediately in the interest rates on U.S. bonds and in an array of obscure -- but crucial -- financial benchmarks. Loans -- particularly those made from one bank to another -- would be more available and less expensive in a matter of days, if not weeks. And as the government gobbles the banks' toxic assets, the industry would gain the confidence and strength needed to make it easier and cheaper for families to borrow for homes, cars and college -- and for businesses to secure ample debt to pay for plants, equipment and workers. Still, rising unemployment, high energy prices and falling real estate values will not disappear overnight.

New Home Construction Spending Down - Good for Phoenix Real Estate

Sal Gutierrez (liberty one) — Sun, 28 Sep 2008 07:43:05 -0700

According to the census bureau. , “The spending rate for residential (new homes ) construction projects dropped for the 25th consecutive month at the end of the first quarter and has fallen 34.4 percent from its peak in February 2006. Now, those of you who know me and have read my posts in the past, know that I am eternally, (but not blindly) optimistic , not in a Wayne Dyer sort of way. However, there is a silver lining in most clouds and prefer to look for that … ok, You read the headlines, sounds bad, right? but is it really ?? let’s look at this in 2 parts. 1) the economy - ok, construction spending is down, sharply, year over year, and construction spending is significant part of our economy ; in this sense todays numbers (above) are not great news for an already struggling (notice, I dont use that evil word ‘recession’) economy , 2) Real Estate - the market we (or maybe its just me) all really care about. - In my humble opinion, and the opinion of most experts is that the #1 factor plaguing our ailing real estate market is excessive surplus in product or Inventory. The news , shows at least that builders are putting out less product. In Maricopa County, which includes Phoenix, Scottsdale, Fountain Hills, Glendale, Mesa, Chandler, Peoria, Tempe and Paradise Valley, ... less product is significant in that it does not add to the problem. Less product , less supply , the more demand. Now, housing now has a strong fighting chance to resuscitate much sooner. I dont know when, however, I do know we do'nt need more homes on the market. I think everyone who sees all those for sales signs in their neighborhood can attest to that! ----------------------------------------------------------------------------------------------------------------------------- Copyright © 2008 By James Wexler, All Rights Reserved. *New Home Construction Spending Down - Good for Phoenix Real Estate* Contact James Wexler (480) 221-8080 for Internet Marketing Coaching and Consulting.

Get ready for the bailout of the century

Sal Gutierrez (liberty one) — Sun, 28 Sep 2008 07:42:20 -0700

Key lawmakers who struck a post-midnight deal on a $700 billion bailout for the financial industry predicted Sunday it would pass Congress, putting in place the largest government intervention in markets since the Great Depression. Flexing its political muscle, Congress insisted on a package that gives lawmakers a stronger hand in controlling the money than the Bush administration had wanted. The rescue plan casts Washington's long shadow over Wall Street with the federal government taking over huge amounts of devalued assets from beleaguered financial firms in exchange for more oversight. Under the plan, lawmakers could block half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification -- and subject to a congressional resolution of disapproval. Still, the resolution could be vetoed by the president, meaning it would take extra-large congressional majorities to stop it. The proposal is designed to end a vicious downward spiral that has battered all levels of the economy, in which hundreds of billions of dollars in investments based on mortgages gone bad have cramped banks' willingness to lend. Lawmakers had to navigate between angry voters -- many of whom view the plan as a rescue package for the wealthy on Wall Street -- and Bush administration officials who warned that inaction would cause the economy to seize up and spiral into recession. Negotiators sought Sunday to iron out the final shape of the legislation, which House Republicans still had to review. It was their fierce opposition to a federal rescue that nearly torpedoed an emerging bipartisan pact late in the week. But officials in both parties were hopeful for a House vote Monday, and the two presidential candidates said they probably would support it.

McCain and Obama offer their 2 cents on the market

Sal Gutierrez (liberty one) — Sat, 20 Sep 2008 09:10:28 -0700

Neither presidential candidate took a position on the proposal. GOP nominee John McCain said he was awaiting specifics and any changes by Congress. McCain and Obama offer their 2 cents on the market "This financial crisis requires leadership and action in order to restore a sound foundation to financial markets, get our economy on its feet, and eliminate this burden on hardworking middle-class Americans," McCain said in a statement. Democratic rival Barack Obama used the party's weekly radio address to call for help for Main Street as well as Wall Street. "We need to help people cope with rising gas and food prices, spark job creation by repairing our schools and our roads, help states avoid painful budget cuts and tax increases, and help homeowners stay in their homes," Obama said. "And we must also ensure that the solution we design doesn't reward particular companies, or irresponsible borrowers or lenders, or CEOs, some of whom helped cause this mess." Their language reflected a tricky balance that politicians in both parties are trying to strike, just six weeks before Election Day: Back a plan that doles out hundreds of billions to companies that made bad bets and still identify with the plight of middle-class voter

Bush promises that over time we will get money back! - yea right

Sal Gutierrez (liberty one) — Sat, 20 Sep 2008 09:05:16 -0700

But lawmakers digesting the eye-popping cost and searching for specifics voiced concerns that the proposal offers no help for struggling homeowners or safeguards for taxpayers' money. Democrats say it must include mortgage help so borrowers facing foreclosure can stay in their homes. Over time, we're going to get a lot of the money back." I have my doubts. At least , it will be the first time the goverment allocates Billions of dollars from the US Treasury and the cost does not trickle down to the US Taxparyer!! Sen. Chuck Schumer, D-N.Y., called the plan "a good foundation," but said it was missing "some kind of supervisory authority, and some kind of protection for homeowners and taxpayers." Still, he said such measures shouldn't slow the package down. "If we wait too long, the floor could come out and everything could crash down," Schumer said. The proposal would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion to make room for the massive rescue. "The American people are furious that we're in this situation, and so am I," the House's top Republican, Ohio Rep. John A. Boehner, said in a statement. "We need to do everything possible to protect the taxpayers from the consequences of a broken Washington." Signaling what could erupt into a brutal fight with Democrats over add-on spending, Boehner said "efforts to exploit this crisis for political leverage or partisan quid pro quo will only delay the economic stability that families, seniors, and small businesses deserve." Bush said he worried the financial troubles "could ripple throughout" the economy and affect average citizens. "The risk of doing nothing far outweighs the risk of the package. ... Over time, we're going to get a lot of the money back." He added, "People are beginning to doubt our system, people were l

This is the problem with the bailout

Sal Gutierrez (liberty one) — Sat, 20 Sep 2008 09:02:10 -0700

The proposal does not require that the government receive anything from banks in return for unloading their bad assets. But it would allow the Treasury Department to designate financial institutions as "agents of the government," and mandate that they perform any "reasonable duties" that might entail. the plan would give the treasury secretary broad power to buy, manage and sell the mortgage-related investments without any additional involvement by lawmakers. The government could contract with private companies to manage the assets once it purchased them. Treasury Secretary Henry Paulson says the government would in essence set up reverse auctions, putting up money for a class of distressed assets - such as loans that are delinquent but not in default - and financial institutions would compete for how little they would accept. If enacted, the plan would give the treasury secretary broad power to buy, manage and sell the mortgage-related investments without any additional involvement by lawmakers. It would, however, require that the congressional committees with oversight on budget, tax and financial services issues be briefed within three months of the government's first use of the rescue power, and every six months after that

3/4 of a billion dollars

Sal Gutierrez (liberty one) — Sat, 20 Sep 2008 08:59:54 -0700

has the FED gone too far this time?? The Bush administration asked Congress to buy $700 billion in toxic assets clogging the financial system and threatening the economy as negotiations began on the largest bailout since the Great Depressi Here is what we are facing (potentially) as a result: Higher taxes Higher interest rates on government debt Bigger government deficits little help to real estate Ultimately, the future of generations of US taxpayers will be footing this bill. Not a good move by the Bush administration of Secratary of the Treasury Hank Paulsen

Rescue will be (too) Costly ??

Sal Gutierrez (liberty one) — Fri, 19 Sep 2008 05:04:43 -0700

The Senate Banking Committee chairman says the government's financial rescue plan will be costly, and is demanding more details about the program to confront the worst financial crisis in decades. <script type="text/javascript"></script> Sen. Chris Dodd told reporters, "We're anxious to hear the specifics. None of us have any idea what the details are. We understand the gravity of the moment." Republicans and Democrats are hoping to put differnces aside this weekend will vote on the rescue plan and a solution to the crisis

Better off today , than yesterday

Sal Gutierrez (liberty one) — Fri, 19 Sep 2008 05:02:18 -0700

The government took action Friday morning to ease a potential panic about the safety of Americans' money -- particularly the solvency of money-market mutual funds. Americans money is safer today as government guarantees money market funds The Treasury Department said it will -- at least temporarily -- guarantee money market funds. President Bush authorized Treasury Secretary Henry Paulson to use up to $50 billion from the Exchange Stabilization Fund to provide the guarantees. The Federal Reserve will lend money to banks to meet demands for redemptions from money market funds. In conjunction with a government proposal to buy bad assets from banks and a temporary ban on short selling of financials, stocks soared early Friday in reaction.

Dare I say . Congrats to the Bush administration

Sal Gutierrez (liberty one) — Fri, 19 Sep 2008 03:43:53 -0700

The Bush administration sketched out a multi-faceted effort on Friday to confront the worst U.S. financial crisis in decades, outlining a program that could cost taxpayers hundreds of billions of dollars to buy up bad mortgages and other toxic debt that has unhinged Wall Street. The government steps were clearly welcomed by financial markets. As Paulson spoke, the Dow Jones industrials were up over 300 points and at one point had soared by 450 points President Bush, flanked by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, acknowledged that the program will put a "significant amount of taxpayers' money on the line." The administration is asking Congress to give it sweeping new powers to execute the plan. Paulson said it "needs to be big enough to make a real difference and get to the heart of the problem." Paulson gave few details but said he would work through the weekend with leaders of Congress from both parties to flesh out the program, the biggest proposed government intervention in financial markets since the Great Depression. Members of the Senate Banking Committee said they had received no details of the proposal.

Phoenix Ranked #5 Best place to live - who's #1 ?

Sal Gutierrez (liberty one) — Fri, 19 Sep 2008 03:39:32 -0700

I had to wait until mid-Spetember (now that we average less than 100 degrees - finally) ... to share this story Phoenix ranked #5 for " America's Best Cities for the Outdoors " The report looked at factors such spending per resident, parkland, city land, recreation index, sunny days, rain and air quality. I have to believe that Phoenix #5 ranking could (in thoery) fluctuate 5 spots on the list depending on time of year. I have lived in a variety of places including Japan, Chicago, New York, Boston, L.A. (Santa Monica) and Fountain Hills - Scottsdale. ... I have to say that Arizona , not just because its my home now is my favorite place to live. Here are the Reasons why Sun shine 85% of the days and an average of less than 30 days with any rain at all Real Estate Affordability for a resort destination is unmatched for price , availability, quality communities and taxes. Location - we are short flights from California, Las Vegas, and most of the Midwest. Yes, the east coast is 5 hours by plane, but who cares, everyone comes to visit us :) Recreation - golf, golf, golf, horse riding, boating, fishing, hunting, dining, shopping, resorts and spas, co-ed and amateur sports leagues, parks, parks, parks, ATV trails, hiking, biking, all virtually 365 days a year. (OK, we are missing the ocean) Granted, I am a die-hard Phoenician, an Arizonan. However, don't get me wrong I love the West Coast Beaches and the Ocean. I was raised in the big Cities of the East Coast where many of my close friends live and love to go back. I visit my mother in Florida as often as she can take and spend much of my vacation time in Vancouver and Montreal. To stimulate a lively discussion (debate??) .... I am asking the the highly respected professionals from their respective cities to state their case for #1. San Francisco -- Ranked #1 San Diego -- Ranked #2 San Jose, CA --Ranked #3 Jacksonville, FL - Ranked #4 Tampa, FL -- Ranked #5 (Tied with Phoenix) Phoenix (Tempe) is Ranked # 5 Minneapolis (Twin cities) is Ranked #6 Las Vegas is Ranked #7 Austin, TX -- is Ranked #8 Virginia Beach -- Ranked #9 Seattle -- Ranked #10 thanks everyone for contributing your thoughts and comments and your argument why people should live (and buy real estate) in your little slice of heaven.