The Real Real Estate Crises

As a real estate agent, I am suppose to sound optimistic about what is going on in the real estate industry. However, the reality is that I don't think things will get better until late 2010 or 2011. Also, I think that what is going on is more than just real estate problem. It is only the beginning. Our economy is going through structural changes.

Here are some things I think contribute to what is going on:
1. the oil consumption : we now have billions of new people who can buy cars, washers, dryers and therefore, need energy: India, China, Latin America, Africa....where having a clothes washer was a luxury it is pretty much becoming a common item, as a car, motor bike.

2. US and world real estate prices exploded. I think this is primarily due to an increase of credit (credit card, mortgages) being more easily available.

Now, I don't think it is because people are getting richer. Yes, people may getting paid more (eg. India, China, Mexico for example). I think it is because the big banks are making credit more available.
And, the forthcoming, credit crises as the mortgage crisis today.

That's globally. Locally,
In San Francisco, who really can afford to make a mortgage payment of $800,000 without a minimum of 2 salaries?
How many service jobs pay well enough to pay a $4,000 mortgage? Plus property taxes, etc.

Add a car payment of at least $400 per month.

Again, what's the problem credit. We are no longer willing to safe to buy something. We want it now using credit. I recently was talking to friend who has stopped making his mortgage payments, and bought 3 LCD TVS....He spent $7,500 on 3 othem and bought them on credit.

I asked why not just 1, or save up to buy them. His response that he wants TODAY, will enjoy them TODAY, and if he goes bankrupt tomorrow at least he enjoyed already.
wow.

como calcular su tasa de interes cuando no es fijo

Hay various tipos de prestamos hipotecarios....se pueden categorizar en 2 sectores:
prestamos figos y prestamos adjustables....

Son los prestamos adjustables la razon de muchos de los problemas de cual los proprietarios no puedan pagar su casa.

Como se calcula el interes de un prestamo adjustable? Tiene que leer la Nota o hablar con "customer service" y conseguir la informacion seguiente:

1. la fecha en cual se combierte en adjustable: el premier dia, en 6 meses en 2 anos?
2. El "margin"
3. el index y el nombre de index: existen muchos indicis: labor, 12th, etc.

el nuevo interest es Interest = Index + Margin

ejemplo:
Hoy tengo la tasa de 6.9, y se adjustable april 1, 2008, el margin es 4.1, y el indice es el Labor 6 Meses

su nueva tasa (usand el indice de 2/08) seria Interest = 3.1 + 4.1= 7.2%

Dumping the First Time Home Buyer at the first signs of trouble

Where have all the lenders and agents gone? 

Has the real estate and loan industry abandoned the Latino
First Time Home Buyer? It seems they have. It was only a few months ago that most major companies and reports where announcing their plans to serve the growing latino home buyer. But that was until this subprime mess exploded.

What about all those first time home buyers that bought with adjustable loans
with a 2 or 3 year period. A lot of these loans are adjusting now and causing
great suffering to these home owners. Many of these borrowers cannot afford the
payment increase and or can no longer refinance, or sell due to current market
conditions. So now what. I recently wrote Senator Feinstein asking her to get
the lenders to waive various onerous conditions especially the Pre Payment
Penalty. This penalty imprisons someone from refinancing due to the high cost of
this penalty.  If borrowers wait until the penalty expires it may be harder
to get a loan.

I recently heard from a real estate agent at PruLatino (Prudential's Hispanic
Full Service real estate office) in northern California. He was complaining
about how Prudential has abandoned their focus on the latino home buyer due to
current subprime problems.

As Realtor Magazine states: "Reaching out to Latino customers in word
and deed.  Several years ago, the California Association of Realtors
release research showing that 20 percent of California home sales involved
buyers or sellers with a Hispanic surname.  Those findings motivated Ed
Krafchow, president of residential brokerage giant Prudential California/Nevada/Texas Realty, to conduct similar research on his company ... In response, Krafchow initiated a Hispanic outreach effort and this year launched  a Spanglish language listings magazine, Palacio." (Realtor Magazine, August 2007)

However, it seems the magazine has not been released, and if my friend at
PruLatino is correct, it seems Prudential was "reaching out for the easy
MONEY only and not in word and deed."

So for all of us involved in the real estate business, let's not forget those
buyers and future buyers who fed us and our families while it was good.