Who Spends Too Much Money on Rent

In all my life I never thought I would hear that there are people spending more than half their income on rent and utilities. This could be in part because there are some folks now receiving unemployment. Call me crazy, but that is a high number. Think about it; I am telling you that spending more than half your income on rent and utilities isn’t good, and we had families in loans that were nearly 55% of their income. We still have all these people who have to spend more money on their rent, so there are still many things that need to change. 

Will the American Budget Crisis Change Rent? 

Our country is a financial crisis, and it makes me wonder if knowing where we are right now with rents increasing, will that change the face of the way rent is being charged? We have got to find a way to get things down and streamline all of our financial obligations to the point where we change as a nation. Given the budget crisis, we need to find better ways to maintain our properties better with minimal cost, and be able to accommodate those who need to trim down what they pay to live.

Why Buyers Have Been Feeling Angry

Those who are looking to buy have been sharing opinions on what it has been like to find a home. The opinions of many of these buyers have been heated, and the debate hasn’t been the increase in insurance premiums on FHA loans either. The challenge and debate has been over the number of homes in inventory that are attractive, and apparently there hasn’t been enough of that going around. I recently read about an interview that CEO of Redfin Corporation had with a customer in California. While she works in the television industry, she is blighted by the fact that there hasn’t been much to pick from for less than $500,000 since the 90’s. How does that factor in right now? 

The Challenge of Being Outbid

This buyer’s challenge in California was not always the inventory in the price range, but the fact that so many homes were being snatched up by investors without her getting the chance to fairly bid on them. It seems that debate has been hot, and while there are plenty of homes to choose from it has posed a bit of a problem for many. I am not sure that there is a happy medium here, because depending on what shape the house is in, there are buyers who aren’t ready or willing to put money into the home upfront. I can understand that because with everyone watching every penny, including those who do have a significant down payment, after moving who wants to keep working around the clock on a new home? 

For more information on how to get the expertise and help you need in buying your new home, you can visit my website by going to www.fhaloansnow.net, or you can call me right now at 310-498-2700. I have a strategic alliance of realtors I work with and other experts that can help us get further along than you ever imagined. 

-Mayer Dallal

The Dilemma for the CEO of Freddie Mac

With talk of shutting down Freddie Mac, there is a lot of pressure on their employees. The CEO has a lot on his plate, and that is not a position that I would want to be in. With 6,000 employees that is a lot of job loss, and the feeling that it gives Americans is one of uneasiness. Why? Because Freddie Mac has been blamed as a big cause of default in the mortgage industry. CEO, Charles Haldeman Jr. says that the true default rate of those mortgages funded by Freddie Mac is only 3.8%, which pales in comparison to the larger numbers flashed out there in the industry. 

Has Freddie Mac Been Profitable? 

Haldeman says that Freddie Mac was profitable in the third quarter, but it did play dividends on the money that it received from the government. This is referring to the bailout money which sent torrents of opinions and critical statements among Americans. So, while there is talk about shutting Freddie Mac down, it goes about its business each day, and everyone waits with anxiety about what is going to happen to their jobs. As always, I am still looking for the positive in all of this. 

For more information on how to get your FHA loan today, you can go to my website at www.fhaloansnow.net, or you can call me at 310-498-2700.

-Mayer Dallal

Recent Drop in FHA Applications

While it was expected that mortgage applications would fall due to an increase in the FHA premiums, it wasn’t expected to drop nearly 30%. This is why I had urged many to get their applications in for their purchase loans rather than waiting. Anytime that you know that it is going to cost you more in the future, you need to make it a point to get busy and move on. It’s important that you heed to your experts that provide you with knowledge, but it is only in your best interest; of course that is if you are ready to do so. 

What’s Next for FHA? 

While the insurance premiums increased, there aren’t any other changes right now which is good. Any changes that would occur I would believe to be for the better, but I can’t predict the future. I can say that an increase was expected in premiums due to the economy, but it could have been worse. I would urge anyone who is on the fence regarding buying a home to get moving before there are any more changes. Rates are going to go up, so I am telling you now to make decisions and get moving. Why pay more than you have to? Don't wait another minute, go to www.fhaloansnow.net to apply for your FHA loan today! 

-Mayer Dallal

The Demands of Rent Increase, and So Does the Price

The new wave is renting, and that is because of the level of foreclosures. I am sad to say that it seems our housing market is working opposite of what it should be. The sad part? Those who were unable to stay in their homes are now going to be paying someone else’s mortgage rather than their own, and they aren’t going to be saving a heck of a whole lot. The demand on renting is going up and therefore the affordability of renting is going down. 

Why Rent is Going Up 

Rent is going up for complexes and for those who are renting out houses, simply because they know they can increase the prices and many are seeking shelter now that they can no longer stay with their relatives. Houses are getting cramped with family members taking people in, and as modifications don’t get approved. Families have been planning to look for apartments as they see their foreclosure under way, meaning they had to go and start looking quickly, so they could get everything moved out. Renting will be more expensive than in the past, but with so many foreclosures being lined up families just don’t have a choice.

Government Foreclosure Program Ideas ?

It is amazing that after all that our country has been through, and everything that we have seen that we are now hearing about a program that was established long ago and is effective! So, what is this program called? The Pennsylvania Homeowners Emergency Mortgage Assistance Program was established in 1984, and the way it is structured makes sense. The program creates bridge loans for those who have lost their jobs, and there is no interest accruing until they are once again gainfully employed. Hmmm, so what now? 

Our Books Show That Pennsylvania Program Works Smarter not Harder 

Isn’t working smarter the whole idea with anything in life? You bet it is, and this is how the Pennsylvania program works. Yes, it is effective, and yes it costs much less than our $30 billion dollar program! The Home Affordable Modification Program has not been so successful, in fact it has been shown that only 9% of those who apply get approved. Those numbers aren’t strong, so maybe we can follow the Penn state model? I am thinking that it sounds like it is worth a shot at least. What are your thoughts? The numbers speak; Pennsylvania had the 26^th highest unemployment rate, but yet the 37^th highest foreclosure rating. I think Pennsylvania might be onto something folks. 

-Mayer Dallal