Every month we know there are tons of new reports out there talking about the number of foreclosures, along with the number of homes sold, homes listed, and homes that were sold in a short sale. With all the numbers being calculated it might be interesting to see how many home sales are pending. The number of home sales pending more than likely grows each holiday season, and especially this year.
Sales fell when the tax credit expired, but with the rate of joblessness remaining so high it makes everyone wonder how much sales will decrease, or for that matter how they could possibly increase. Home sales will probably stay about the same in the coming year unless there are some dramatic changes, but the number of pending sales probably did shoot up over the course of November. As Thanksgiving approaches, then with Christmas following people are not motivated to pack and move, nor do they want to spend more, so many will wait until after the holidays to start spending money on appraisals and inspections leaving tons of pending sales out there.
When it comes to short sales, those sales could take quite some time, but only time will tell overall how home sales will move in 2011.
-Mayer Dallal
Friday, December 31, 2010
Thursday, December 30, 2010
Credit Recommendations for 2011
In the coming year, we all have some changes we would like to make whether personal or professional. Credit is a big issue for all, and many of us are setting goals, cutting up credit cards, and living more frugally in order to make it happen. So, in the coming year, for those who aren’t sure where to start I have a few simple ideas for you to jumpstart your new outlook for 2011.
If you are in credit card debt up to your eyeballs, the only way to get out of it is to stop using them. Cut them up, and pay more than the minimum due if you can. If you are struggling due to unemployment or minimal cash-flow and you are under the seamless pile of debt, call the credit card companies and tell them your situation. Some of them will be more willing to work with you than others, but the best way to handle this is to get ahead of the problem.
The next step is to pay more than you can every chance you can get. While jobs are few and far between, some places are willing to hire for part-time work. Still, these jobs are really hard to get, and it may come down to you parting with items you love in order to raise the funds to get the debt down and out of your life. A friend of mine who is an avid reader has sold several of her books on eBay. She read them, but because they were shelved they were in good shape and completely capable of being sold. Now, this may not apply to everyone, but we all have something we collect and we could probably stand to get a head start on our spring cleaning.
All in all, do what you can. I know that not everyone will have this advantage, but you have to start somewhere. You never know what is around the corner but with much determination and working together with others you can make it happen.
-Mayer Dallal
If you are in credit card debt up to your eyeballs, the only way to get out of it is to stop using them. Cut them up, and pay more than the minimum due if you can. If you are struggling due to unemployment or minimal cash-flow and you are under the seamless pile of debt, call the credit card companies and tell them your situation. Some of them will be more willing to work with you than others, but the best way to handle this is to get ahead of the problem.
The next step is to pay more than you can every chance you can get. While jobs are few and far between, some places are willing to hire for part-time work. Still, these jobs are really hard to get, and it may come down to you parting with items you love in order to raise the funds to get the debt down and out of your life. A friend of mine who is an avid reader has sold several of her books on eBay. She read them, but because they were shelved they were in good shape and completely capable of being sold. Now, this may not apply to everyone, but we all have something we collect and we could probably stand to get a head start on our spring cleaning.
All in all, do what you can. I know that not everyone will have this advantage, but you have to start somewhere. You never know what is around the corner but with much determination and working together with others you can make it happen.
-Mayer Dallal
Resolving For a Better Year in 2011
In light of what happens, and all the changes that have occurred I resolve for a prosperous year in 2011. I am driven by family, and the desire to help others; this is all in addition of being thankful for my wonderful friends, family members, colleagues and awesome clients. I am thankful for all those I have been able to help, those I have been able to counsel, and those that I will be able to help in the future once they come out stronger on the other side.
When challenges come you have to keep pressing on toward the mark. Setting goals, short term and long term are so important for all of us. I encourage you all to decide what goals or resolutions you might have. I say goals first, simply because resolutions are something that we talk about, but goals are something that we write down. Once you write something down you are held to a higher standard. You look at it every day and you are reminded of what is ahead, and you hold yourself accountable to what you have now decided upon for your future.
Your future is in every thought for every day ahead of you that you are planning. Don’t think that the future is that far off, because every morning when you wake up…is hopefully a day you planned for. Live on purpose, speak on purpose and do- ON PURPOSE. My wish for each and every one of you no matter what your relationship is to me is nothing but sheer joy, prosperity, success and peace amidst the storm.
-Mayer Dallal
When challenges come you have to keep pressing on toward the mark. Setting goals, short term and long term are so important for all of us. I encourage you all to decide what goals or resolutions you might have. I say goals first, simply because resolutions are something that we talk about, but goals are something that we write down. Once you write something down you are held to a higher standard. You look at it every day and you are reminded of what is ahead, and you hold yourself accountable to what you have now decided upon for your future.
Your future is in every thought for every day ahead of you that you are planning. Don’t think that the future is that far off, because every morning when you wake up…is hopefully a day you planned for. Live on purpose, speak on purpose and do- ON PURPOSE. My wish for each and every one of you no matter what your relationship is to me is nothing but sheer joy, prosperity, success and peace amidst the storm.
-Mayer Dallal
What We May See Next Year
With the New Year approaching, we aren’t sure what we are going to see in the coming year. This year we continued to be riddled with fear, and bad media reports were plentiful with little chance that any of it was accurate. While things are far from business as usual, we still can’t rely on all the media statistics being true to what is really happening. There are plenty of predictions to go around, and I am sure that mine are no different.
1). I don’t see jobs picking up all that much, meaning the housing market won’t pick up much either. How do I know this? It’s simple; without job certainty there is no desire to purchase a home. Who knows if they can even pay their rent? This is just a common sense assessment.
2). Foreclosures may follow suit according to how the job market goes, but we will see. I have interviewed several people that believe their jobs are in danger and have lived so frugally in order to pay down every single bill they have. They are so afraid of being unemployed, they will nearly starve now, so that they don’t have to completely starve later. Preparation is everything, and stockpiling canned goods that won’t go bad or having water on hand ahead of time is a safe bet. If not in case of bad weather, make sure you plan ahead for all things.
3). Commercial Real Estate may not pick up anytime soon, and in 2011 those who want to start businesses may have their pick of properties. I can’t guarantee anything, but what I can tell you is that unless there is a windfall of venture capitalists that are willing to throw money at start-ups it may not grow much in 2011.
It’s really hard to tell either way, but these are three of the things I don’t see changing much. I of all people remain hopeful, but realistically speaking and based on what I see has happened this year this may be the case.
-Mayer Dallal
1). I don’t see jobs picking up all that much, meaning the housing market won’t pick up much either. How do I know this? It’s simple; without job certainty there is no desire to purchase a home. Who knows if they can even pay their rent? This is just a common sense assessment.
2). Foreclosures may follow suit according to how the job market goes, but we will see. I have interviewed several people that believe their jobs are in danger and have lived so frugally in order to pay down every single bill they have. They are so afraid of being unemployed, they will nearly starve now, so that they don’t have to completely starve later. Preparation is everything, and stockpiling canned goods that won’t go bad or having water on hand ahead of time is a safe bet. If not in case of bad weather, make sure you plan ahead for all things.
3). Commercial Real Estate may not pick up anytime soon, and in 2011 those who want to start businesses may have their pick of properties. I can’t guarantee anything, but what I can tell you is that unless there is a windfall of venture capitalists that are willing to throw money at start-ups it may not grow much in 2011.
It’s really hard to tell either way, but these are three of the things I don’t see changing much. I of all people remain hopeful, but realistically speaking and based on what I see has happened this year this may be the case.
-Mayer Dallal
Freezing Credit Lines Due to Low Values
Real estate appraisals were out of control there is no doubt, and changes were made to prevent estimates from being put into unrealistic ranges. There is no doubt that home values are in danger, and with prices falling it’s hurting more than just the seller’s pocketbook. Computerized home appraisals are making waves in that several models are contributing to the information that comes back. In some cases it may be true that the values of homes run through these systems may be rendered undervalue.
So, while some homeowners think this is ideal in that they feel they would get lower taxes, the challenge is greater for those who have equity lines of credit attached to their homes. When loan companies offer these lines of credit, it is possible that they could in fact put a freeze on that line of credit. The real issue? Not only is freezing that line of a credit frustrating for the borrower, but what if you already have estimates and have put down a deposit on home repairs using this line of credit? You have workers coming to work on your home and you have already written the first installment from that line of credit on your repairs. Also, when getting estimates double check with the contractor, but in most cases deposits or partial payments are non-refundable.
The best thing to do is to ask if you are in the middle of a big job, or if you speculate that there might be an issue. Writing a check that won’t be honored and one you didn’t know about can be embarrassing, but can cause huge problems along with more fees that you weren’t prepared to paid. After all that is why you took out the line of credit; you wanted to let the equity you thought you had in your home work for you.
-Mayer Dallal
So, while some homeowners think this is ideal in that they feel they would get lower taxes, the challenge is greater for those who have equity lines of credit attached to their homes. When loan companies offer these lines of credit, it is possible that they could in fact put a freeze on that line of credit. The real issue? Not only is freezing that line of a credit frustrating for the borrower, but what if you already have estimates and have put down a deposit on home repairs using this line of credit? You have workers coming to work on your home and you have already written the first installment from that line of credit on your repairs. Also, when getting estimates double check with the contractor, but in most cases deposits or partial payments are non-refundable.
The best thing to do is to ask if you are in the middle of a big job, or if you speculate that there might be an issue. Writing a check that won’t be honored and one you didn’t know about can be embarrassing, but can cause huge problems along with more fees that you weren’t prepared to paid. After all that is why you took out the line of credit; you wanted to let the equity you thought you had in your home work for you.
-Mayer Dallal
The Reverse Mortgage Dilemma
A little birdie told me that reverse mortgages might be in trouble, but I am not sure exactly what this means. Reverse mortgages weren’t following in the same footsteps as other mortgage loans, and I certainly wouldn’t begin to group them together. While I don’t do them, I know what they are, and I guess I don’t really see them as “harmful”.
A reverse mortgage essentially pays someone to have a mortgage, acting as “income” for the borrower. The catch? The property would be relinquished to the bank upon the death of the homeowner or sale of the home. These loans are aimed at senior citizens, and aren’t really designed to set someone up for default. There are specific stipulations that must be met in order for a reverse mortgage to be done, and the guidelines are anything but the “standard”.
Reverse mortgages were meant for good, not for bad; while they do have that “catch”, I would have to say that most senior citizens across America aren’t in a stable financial position. Sure, many I know have homes that are paid in full, and don’t have all this credit card debt that younger generations have; well some of them anyhow.
Seniors tend to have higher medical bills, and more medications as they age, so this is where the reverse mortgage comes in. This was designed to generate additional income out of the equity they had established in their home. It sounds ideal, but is it? I guess that is what everyone is asking these days, and while I don’t have all the details, I would hate to see a life boat taken out from under a senior citizen. I guess there is no perfect solution to any of this, but just when healthcare is getting ready to change, taking away one of the very few life lines seniors have could be detrimental.
-Mayer Dallal
A reverse mortgage essentially pays someone to have a mortgage, acting as “income” for the borrower. The catch? The property would be relinquished to the bank upon the death of the homeowner or sale of the home. These loans are aimed at senior citizens, and aren’t really designed to set someone up for default. There are specific stipulations that must be met in order for a reverse mortgage to be done, and the guidelines are anything but the “standard”.
Reverse mortgages were meant for good, not for bad; while they do have that “catch”, I would have to say that most senior citizens across America aren’t in a stable financial position. Sure, many I know have homes that are paid in full, and don’t have all this credit card debt that younger generations have; well some of them anyhow.
Seniors tend to have higher medical bills, and more medications as they age, so this is where the reverse mortgage comes in. This was designed to generate additional income out of the equity they had established in their home. It sounds ideal, but is it? I guess that is what everyone is asking these days, and while I don’t have all the details, I would hate to see a life boat taken out from under a senior citizen. I guess there is no perfect solution to any of this, but just when healthcare is getting ready to change, taking away one of the very few life lines seniors have could be detrimental.
-Mayer Dallal
Wednesday, December 29, 2010
Privatizing Freddie and Fannie?
Republicans were planning to privatize Fannie Mae and Freddie Mac, but it may be a different story now that they are going to be in control of the House. Representative Scott Garrett made mention of the fact that some things can be done overnight, but others can’t be. Garrett is the gentleman that was appointed to oversee what changes with Freddie and Fannie. Garrett believes that with the market being in a delicate position, it could be damaging to privatize the mortgage giants so quickly.
To clear up what Fannie and Freddie really do, they buy mortgages from lenders and package them as securities. The securities are sold to investors, but with the losses that these agencies experienced in 2008 it had to be placed under the view of the government. Tax payers are fed up with the constant bail outs and are watching their tax dollars go down the drain because if the bailouts. The financial industry seems to have not corrected itself just yet, and with billions being thrown at it to save it without a turnaround, it makes you wonder how much more will be thrown at it before things change.
-Mayer Dallal
To clear up what Fannie and Freddie really do, they buy mortgages from lenders and package them as securities. The securities are sold to investors, but with the losses that these agencies experienced in 2008 it had to be placed under the view of the government. Tax payers are fed up with the constant bail outs and are watching their tax dollars go down the drain because if the bailouts. The financial industry seems to have not corrected itself just yet, and with billions being thrown at it to save it without a turnaround, it makes you wonder how much more will be thrown at it before things change.
-Mayer Dallal
Buying From the Divorced
Buying a home is stressful enough, and no transaction is exempt from its challenges, but buying from a couple that is divorcing certainly can present challenges. While these homes tend to get listed quickly and are looking to sell quickly, emotions are high, and things are said in the process that is hurtful between the husband and wife. Unfortunately, that carries over into the sale of the home, and can make things harder on the buyer.
When tension is high, there can be miscommunication between the agent and the couple. This can be frustrating for the agent in that they have a certain timeline they need to follow as well. No one gets paid until the loan closes, so everyone is waiting on pins and needles while trying to ensure that it has been a smooth transaction. The transaction can only go as smooth as what the sellers allow, and when miscommunication is a problem, everything else can go awry as well.
None of us are exempt from getting a divorce, and none of us are perfect, this is merely a warning to those who are looking to buy. There can be challenges with any purchase transaction when buying a home, and it all comes down to being prepared to wait if necessary, or being prepared to move quickly if given the chance. Remember that it is important to be considerate of the seller’s emotions as well, and by doing your part it can make as the buyer it will make things smoother for everyone involved.
-Mayer Dallal
When tension is high, there can be miscommunication between the agent and the couple. This can be frustrating for the agent in that they have a certain timeline they need to follow as well. No one gets paid until the loan closes, so everyone is waiting on pins and needles while trying to ensure that it has been a smooth transaction. The transaction can only go as smooth as what the sellers allow, and when miscommunication is a problem, everything else can go awry as well.
None of us are exempt from getting a divorce, and none of us are perfect, this is merely a warning to those who are looking to buy. There can be challenges with any purchase transaction when buying a home, and it all comes down to being prepared to wait if necessary, or being prepared to move quickly if given the chance. Remember that it is important to be considerate of the seller’s emotions as well, and by doing your part it can make as the buyer it will make things smoother for everyone involved.
-Mayer Dallal
Tuesday, December 28, 2010
2010's Double Dip in Housing Failures?
At the end of 2009, everyone had figured that the housing market had reached the worst level ever, and that it couldn’t possibly get worse. I don’t know that any of us really anticipated it would be this bad, but we didn’t expect it to recover quickly either.
Some warned us of a double dip in the housing market, while others predicted we would experience a self-sustained recovery. Oddly, we had neither! However, we can all see that the housing recovery will move slowly, that is no surprise. The homebuyer tax credit gave us a small jumpstart and gave us a little bit of confidence, and when that tax credit was taken away there was little incentive for folks to buy. So, with that being taken away it makes us all wonder if there is still a reason to buy.
Naturally, my answer is yes; there is a huge inventory of homes to choose from, and the tax bill affecting tax deductions was extended for another year. This is always helpful, simply because we want to have some incentive for one of the largest purchases we will ever make.
In some sense, we did bottom out twice, meaning our sales picked up with the tax credit, and then slowed down again, but I wouldn’t call this a “double dip” as some refer to the recession. While gains may have seemed artificial, let’s take it one day at a time, and let each of us do our part to make things better. Pay your bills, and when you can’t call ahead and begin making arrangements. Don’t wait until it’s too late to let someone know you need help.
-Mayer Dallal
Some warned us of a double dip in the housing market, while others predicted we would experience a self-sustained recovery. Oddly, we had neither! However, we can all see that the housing recovery will move slowly, that is no surprise. The homebuyer tax credit gave us a small jumpstart and gave us a little bit of confidence, and when that tax credit was taken away there was little incentive for folks to buy. So, with that being taken away it makes us all wonder if there is still a reason to buy.
Naturally, my answer is yes; there is a huge inventory of homes to choose from, and the tax bill affecting tax deductions was extended for another year. This is always helpful, simply because we want to have some incentive for one of the largest purchases we will ever make.
In some sense, we did bottom out twice, meaning our sales picked up with the tax credit, and then slowed down again, but I wouldn’t call this a “double dip” as some refer to the recession. While gains may have seemed artificial, let’s take it one day at a time, and let each of us do our part to make things better. Pay your bills, and when you can’t call ahead and begin making arrangements. Don’t wait until it’s too late to let someone know you need help.
-Mayer Dallal
Wednesday, December 22, 2010
Did You Know?
Did you know that this recession is definitely nowhere near being as bad as the first one? Although we might see it as a catastrophe, it certainly isn’t. History does repeat itself, but the truth is we are still doing okay for the time being. Unemployment right now is teetering around 9 to 10% which isn’t great, but during the Great Depression unemployment reached 25%. Did you know that industrial production dropped 46%? This is not even the worst of it; let’s just say that what we view as a Depression isn’t really a Depression.
I look around and see people shopping for the holidays; at that time only the very wealthy could afford to shop. There were plenty of families that knew what it was like to be hungry, and I can’t say that I have been there. Sure, we have all been concerned about what is happening and how it will affect us. This is what I call a national disaster, but in the end we are much further along in our comforts than people were back then.
So, with what is going on now, what would you say that the Great Depression was linked to then? How did this all happen so long ago? According to an article I read entitled, “Seeds of Financial Disaster”, there was corruption in the banking system at that time. So, it really isn’t much different in terms of how this happened. Commercial and investment banking industries were crossing each other’s lines then, so it seems that it history does in fact repeat itself.
During the 70’s, Asset Securitization was born, and this is how the selling of mortgages began. In essence, this plan was designed to make housing more affordable, but did it? Looking at where we are now, surely there is a better plan.
-Mayer Dallal
I look around and see people shopping for the holidays; at that time only the very wealthy could afford to shop. There were plenty of families that knew what it was like to be hungry, and I can’t say that I have been there. Sure, we have all been concerned about what is happening and how it will affect us. This is what I call a national disaster, but in the end we are much further along in our comforts than people were back then.
So, with what is going on now, what would you say that the Great Depression was linked to then? How did this all happen so long ago? According to an article I read entitled, “Seeds of Financial Disaster”, there was corruption in the banking system at that time. So, it really isn’t much different in terms of how this happened. Commercial and investment banking industries were crossing each other’s lines then, so it seems that it history does in fact repeat itself.
During the 70’s, Asset Securitization was born, and this is how the selling of mortgages began. In essence, this plan was designed to make housing more affordable, but did it? Looking at where we are now, surely there is a better plan.
-Mayer Dallal
Tuesday, December 21, 2010
Federal Reserve to Provide Guidance on LO Compensation
It’s not really clear what changes are coming on LO compensation, but we always knew that somehow changes would be made. Closing loans is a lot of work, let alone getting the applications and getting someone to be approved, but I certainly understand why there is concern over how loan officers are being compensated.
I even saw this years ago when I first started in the business, because loan officers were less apt to focus on the borrowers best interest when they knew how much they could make. It’s really sad, but there were so many people who would sit and figure out the maximum amount of money they could charge to know on each loan so they would know exactly how commission they could walk away with. There is nothing wrong with wanting to make a decent living, but don’t do it at someone else’s expense. In every loan there should always be a benefit to the borrower, and if there isn’t then the loan shouldn’t be done. The whole point of what we do is to progress home ownership not make this situation worse than it already is.
People are looking for hope, not a commission driven loan officer who is looking to make a quick buck. This job takes work, and those who don’t want to put time into it shouldn’t be in this field.
-Mayer Dallal
I even saw this years ago when I first started in the business, because loan officers were less apt to focus on the borrowers best interest when they knew how much they could make. It’s really sad, but there were so many people who would sit and figure out the maximum amount of money they could charge to know on each loan so they would know exactly how commission they could walk away with. There is nothing wrong with wanting to make a decent living, but don’t do it at someone else’s expense. In every loan there should always be a benefit to the borrower, and if there isn’t then the loan shouldn’t be done. The whole point of what we do is to progress home ownership not make this situation worse than it already is.
People are looking for hope, not a commission driven loan officer who is looking to make a quick buck. This job takes work, and those who don’t want to put time into it shouldn’t be in this field.
-Mayer Dallal
Eyes on FHA
All eyes are on FHA right now, only for the simple fact that no matter what is going on around them, they are still doing very well. The main goal of FHA is to provide home ownership to qualifying borrowers, and to keep them in those homes. It’s always the organizations that do well that get scrutinized, but because it’s a government organization they are being examined closely just to ensure that they continue to do things the right way.
There have been many changes with FHA this year, but again that is simply attributed to the fact that they are under scrutiny as a government organization. FHA is trying to make sure that every policy they implement has the homeowner’s best interest in mind. It is not always the easiest job, and of course you can’t make everyone happy. The goal though is to continue to promote home ownership, but there is only so much you can do. FHA made changes based upon the market, what they forecast is coming, and what is based on research.
There are more changes coming, which will be introduced in January 2011, but as far as all the details I don’t have them. I can tell you that the main goal for 2011 is to create balance, and to ensure that going forward everything is done with decency and professionalism to benefit all who are involved.
As always I can provide you with up to date information on FHA, and the lowest rates around. So, call me today at 310-498-2700, or you can visit my website to get started at www.fhaloansnow.net.
-Mayer Dallal
There have been many changes with FHA this year, but again that is simply attributed to the fact that they are under scrutiny as a government organization. FHA is trying to make sure that every policy they implement has the homeowner’s best interest in mind. It is not always the easiest job, and of course you can’t make everyone happy. The goal though is to continue to promote home ownership, but there is only so much you can do. FHA made changes based upon the market, what they forecast is coming, and what is based on research.
There are more changes coming, which will be introduced in January 2011, but as far as all the details I don’t have them. I can tell you that the main goal for 2011 is to create balance, and to ensure that going forward everything is done with decency and professionalism to benefit all who are involved.
As always I can provide you with up to date information on FHA, and the lowest rates around. So, call me today at 310-498-2700, or you can visit my website to get started at www.fhaloansnow.net.
-Mayer Dallal
Sunday, December 19, 2010
Rates Are on the Rise
Anytime rates are on the rise, it means that something is spurring underneath with the economy. This is good, and although we aren’t there yet it will just take a little time. Clearly, with rates going up, I have had a lot of phone calls from families on whether or not to buy or whether or not they should be refinancing. The answer is a resounding YES!
You don’t want to be going into another year in which rates could potentially drive up very high, we just don’t know for sure. With rates being so low in more than 50 years, it makes it a great time to refinance or buy a home if you have been on the fence. Making a move could mean the difference between paying $20 more than you are paying now per month, or paying $100 more per month. We just don’t know how all of this will impact us, but I would certainly urge you to call me today before this happens. Why more than you have to; I certainly wouldn’t.
-Mayer Dallal
Foreclosures Drop in November
It’s great news that foreclosures have been dropping over the past few months. In the month of November, Realty Trac released their survey results stating that foreclosures had dropped more than 20% from October which is great. They were down 14% from what we had going on in November of 2009. This is good news to too, because we don’t really want to see numbers right now superseding what occurred last year.
What this means in terms of more real numbers is that this is the lowest this number has been since February of last year, because that is when things seem to get worse. Whether or not it was linked to families choosing to spend money on holiday credit card bills over paying the mortgage I am really not sure. It is tough when families are choosing between paying the mortgage or feeding their kids. I am thankful I am not in that position. What I will tell you is that I am on a mission simply to help others, and it goes day by day because you never know who you will come into contact with.
This is why I was so driven to become multifaceted in my business, so that I could be empowered with knowledge to help those in good and bad situations, and to be able to answer questions that would at least point people in the right direction.
-Mayer Dallal
What this means in terms of more real numbers is that this is the lowest this number has been since February of last year, because that is when things seem to get worse. Whether or not it was linked to families choosing to spend money on holiday credit card bills over paying the mortgage I am really not sure. It is tough when families are choosing between paying the mortgage or feeding their kids. I am thankful I am not in that position. What I will tell you is that I am on a mission simply to help others, and it goes day by day because you never know who you will come into contact with.
This is why I was so driven to become multifaceted in my business, so that I could be empowered with knowledge to help those in good and bad situations, and to be able to answer questions that would at least point people in the right direction.
-Mayer Dallal
Tuesday, December 7, 2010
Is Roubini Always Right?
Nouriel Roubini has made some hefty predictions in the past, but they have all come true. Many call him “Dr. Doom”, but he is simply giving his vision based upon research and statistics. He is an economist, so he does have data to back up what he has predicted, and right now his biggest concern is what is going on in America with our real estate debacle. It isn’t pretty right now, but according to Roubini it’s going to get worse.
He basically takes the stance that America doesn’t really take it all that serious, and that right now would be a good time to do so. He believes that America looks at the situation and says we can’t change it so why work on making an effort to do anything different? Roubini isn’t a fan of taking a back seat to something so critical, and he is probably right, but what is happening is so overwhelming that I don’t think anyone can wrap their mind around it for now.
Roubini says that despite what is happening in other countries, our circumstances are much worse, and that other countries will just need to worry about themselves without our help. We need a leg to stand on and no one is really paying attention in his opinion. I think many have this opinion because for so long American has taken care of others before we have taken care of ourselves and that can be dangerous even though we have good intentions of helping those in our alliance.
-Mayer Dallal
He basically takes the stance that America doesn’t really take it all that serious, and that right now would be a good time to do so. He believes that America looks at the situation and says we can’t change it so why work on making an effort to do anything different? Roubini isn’t a fan of taking a back seat to something so critical, and he is probably right, but what is happening is so overwhelming that I don’t think anyone can wrap their mind around it for now.
Roubini says that despite what is happening in other countries, our circumstances are much worse, and that other countries will just need to worry about themselves without our help. We need a leg to stand on and no one is really paying attention in his opinion. I think many have this opinion because for so long American has taken care of others before we have taken care of ourselves and that can be dangerous even though we have good intentions of helping those in our alliance.
-Mayer Dallal
Saturday, December 4, 2010
Will the Commercial Markets Grow Stable?
Commercial real estate has taken a big hit this year. With businesses going under, and empty spaces for sale and for rent, there is a low turnover rate as opposed to what it used to be. Commercial realtors have taken significant cuts to commission as a result, and for many it has taken longer than normal for deals to come to fruition. Commercial sales were never quick, but now they are moving slower than ever.
The National Association of Realtors (NAR) seems to think that there is some modest comeback for commercial real estate in 2011, but only time will tell. There is no certainty with anything, but right now more than ever than are questions being asked. Leasing will probably be where it’s at with so many business owners being reluctant to buy, and leases have been more than negotiable.
When new businesses open, that means commercial real estate will change for the better, but how soon this will happen we aren’t sure. More businesses opening means more jobs, and with more jobs comes a more stable environment. We are all looking for a change, and we just hope that it’s coming soon.
-Mayer Dallal
The National Association of Realtors (NAR) seems to think that there is some modest comeback for commercial real estate in 2011, but only time will tell. There is no certainty with anything, but right now more than ever than are questions being asked. Leasing will probably be where it’s at with so many business owners being reluctant to buy, and leases have been more than negotiable.
When new businesses open, that means commercial real estate will change for the better, but how soon this will happen we aren’t sure. More businesses opening means more jobs, and with more jobs comes a more stable environment. We are all looking for a change, and we just hope that it’s coming soon.
-Mayer Dallal
Do Americans Trust Mortgage Lenders?
Overall, I think the honest answer to this question is know. I have been a lender myself, or bank rather. I have had my hands in many areas of this industry, and I think what did people in was actually something that stemmed from years ago. When what we call the “housing boom” occurred, many were dealing with loan officers that were more like “Salespeople”. As much as I had my own techniques in dealing with people, I never wanted to come off like a car salesman. It used to be the running joke, that those who didn’t make it as car salesman became mortgage brokers, and brokers who couldn’t make it became car salesmen.
The one bonus that I do think came as a result of our housing crisis, is the group of people that are still standing and are working in the business today. These people are the ones you want to deal with, because they won’t get out of the business no matter what. Sure, that isn’t to say that anyone who moved on wasn’t honest or worth dealing with, but a majority of people who left the business really shouldn’t have been in the business in the first place.
I think that streamlining the process, and keeping bankers and brokers educated is the key, and putting processes into place to make sure that things are being done correctly is so important. Checking and double-checking is a lost art, and there is no doubt about it that many didn’t take this crisis seriously. Those who are dealing with your money and emotions should know better, and most of all we need to get back to the basics and be accountable for our actions.
-Mayer Dallal
Wiki Leaks and Bank Documents
Wiki Leaks has been an ongoing controversy for quite some time. It is no wonder that our country is at such unrest right now. We have people leaking classified information onto the internet where many can see it, and in the process the other countries look on and just laugh at us. It is truly a sad situation, but it makes you wonder what is really going on.
In the process of uncovering government documents and statements, the next move for Assange is apparently bank documents. Keep in mind that this pertaining to U.S. bank documents. Everyone is interested in our bank documents because they are trying to understand what happened to the super power. Or, are we really all that powerful?
Assange defined the documents as not being as big as Iraq, but could be tens of thousands of documents. Very interesting I think, and I guess doing what I do today I am looking forward to what occurs as a result. Assange already pointed out that these documents will expose the truth about what is happening, but do we even really know what that truth is? Maybe we will just have to wait and find out when that time comes.
-Mayer Dallal
In the process of uncovering government documents and statements, the next move for Assange is apparently bank documents. Keep in mind that this pertaining to U.S. bank documents. Everyone is interested in our bank documents because they are trying to understand what happened to the super power. Or, are we really all that powerful?
Assange defined the documents as not being as big as Iraq, but could be tens of thousands of documents. Very interesting I think, and I guess doing what I do today I am looking forward to what occurs as a result. Assange already pointed out that these documents will expose the truth about what is happening, but do we even really know what that truth is? Maybe we will just have to wait and find out when that time comes.
-Mayer Dallal
Considering Litton Loan
Traditionally in the past, Litton Loan Servicing has not been viewed as a superior servicer of mortgages. Goldman Sachs owns Litton Loan Servicing, and analysts say that selling this loan servicing company could end a lot of problems for the bank. Litton Loan isn’t at the core of the service they provide, meaning Litton has nothing to do with investment banking, which is the direction that they wish to go. So, in their opinion it would be unwise to hold onto a company that has little to do with their ultimate goal.
Although there has been much talk around Goldman Sachs and everything that is going on in the industry of finance, I would have to say that letting go of Litton should be the least of anyone’s worries. In the past potential borrowers that had loans serviced by Litton were always having problems. They would report payments late when they were not, and forbearances would show up when no forbearance had ever been initiated on the loan payments.
The problems this can cause are insurmountable for many, as they now have to go back and try to correct everything that shows up incorrectly which can be really trying to the mind, the nerves and the emotions. Trying to overcome a loan servicer is very difficult, and a lot of information can get lost in translation going from the lender to the servicer, and never touching the ears of the borrower. Servicers definitely need work.
-Mayer Dallal
Friday, December 3, 2010
Are Jobs Really Up?
Since the beginning of this year we have watched the job ticker go up and down, up and down. We have watched the unemployment filings vacillate to the point where we aren’t really sure what to believe. Unemployment went down when so many were hired to do work for the census, but as soon as those people were out of work then the numbers changed. There are many different variables that go into accounting for the proper numbers on unemployment.
There are those that were just recently hired, or those that were recently fired. Then, we have seasonal workers, and once they are out of work the numbers will change again. Then we have those who were also told that they could not extend their unemployment benefits. Huh? That’s right, in several states, especially in Ohio there were many that were told they could not get their unemployment extended after a bill was signed that would allow them to do so.
Here is the problem; those that were told they could not re-apply or didn’t qualify for whatever reason, are now in limbo. They are no longer getting unemployment, but they are still out of a job. So, how are they being counted?
-Mayer Dallal
There are those that were just recently hired, or those that were recently fired. Then, we have seasonal workers, and once they are out of work the numbers will change again. Then we have those who were also told that they could not extend their unemployment benefits. Huh? That’s right, in several states, especially in Ohio there were many that were told they could not get their unemployment extended after a bill was signed that would allow them to do so.
Here is the problem; those that were told they could not re-apply or didn’t qualify for whatever reason, are now in limbo. They are no longer getting unemployment, but they are still out of a job. So, how are they being counted?
-Mayer Dallal
Thursday, December 2, 2010
The Holiday Gift of Suspending Evictions
Freddie Mac announced again that they would not evict people from their homes during the holiday season, which is something that they have been putting into practice for three years in a row. Freddie Mac isn’t the only one that is halting its evictions though, because Fannie Mae is jumping right in as well.
I think that this was one of the best things they could do, because times are hard enough and the holidays have made many people feel worse. Depending upon what holiday you will celebrating, you may be having a hard time with the holiday season. Perhaps it isn’t even a material thing and you lost a loved one, and that is plenty hard enough. Let’s look at the reality at what is happening right now too, and put a spin on this situation. Let’s say you just lost your spouse, and your mortgage payments are behind and you have already gotten your foreclosure notice. Not only are you in a bad place in life, but now you have been given more bad news which makes things harder. You now have to either find another place to live or sleep on the street. This is hard stuff, the stuff that right now I don’t have to worry about. No matter how bad I think I have it, I am still better off than many others in this country right now.
Many times, we also pass by someone without giving much thought to what might be going on in their world. I am here to tell you that I can’t stop thinking about the bum on the street with no place to go. Maybe he lost his job, and his wife left him and his home went into foreclosure and now he is on the street. This when I say “thanks be to God”. Freddie Mac can’t save the world, but it’s time than many more organizations follow their example in 2010 and the years to come.
-Mayer Dallal
Wednesday, December 1, 2010
Rent or Buy?
Those who are currently renting may want to stay a renter in this economy. Naturally, I promote homeownership, and there are so many benefits to owning a home, but in these tough economic times it may be hard to convince someone to buy over renting. Many are taking a look around and feeling comfortable right where they are.
On one side, when you own your home you will have more privacy, it’s yours, and dealing with neighbors is a little different. When you live in an apartment they are right next to you, but when living in a house they are a little further away. Renting a house is not so bad, but you are still putting up money every month for something that you will never own. There are some property owners that offer rent to own agreements with offering the money you pay into the rental as down payment towards the purchase of the home. However, just be careful that you read the fine print. These agreements can have huge loopholes and ultimately don’t put as much toward the down payment as you think.
Owning a home is still the American dream, but the challenge now is that the dream seems like it’s harder to achieve. The second half to this issue is that rents are getting higher, and making mortgage payments look cheaper. With home prices falling, there is no doubt that you can get more house for the money, but do make sure that in the bigger picture with maintenance and utilities that it will still work with your budget.
-Mayer Dallal
On one side, when you own your home you will have more privacy, it’s yours, and dealing with neighbors is a little different. When you live in an apartment they are right next to you, but when living in a house they are a little further away. Renting a house is not so bad, but you are still putting up money every month for something that you will never own. There are some property owners that offer rent to own agreements with offering the money you pay into the rental as down payment towards the purchase of the home. However, just be careful that you read the fine print. These agreements can have huge loopholes and ultimately don’t put as much toward the down payment as you think.
Owning a home is still the American dream, but the challenge now is that the dream seems like it’s harder to achieve. The second half to this issue is that rents are getting higher, and making mortgage payments look cheaper. With home prices falling, there is no doubt that you can get more house for the money, but do make sure that in the bigger picture with maintenance and utilities that it will still work with your budget.
-Mayer Dallal
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