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 Rules on Getting Mortgage Debt Forgiven

There are so many homeowners that faced hard decisions this year regarding getting a load modification on their home, to allow the home to be foreclosed upon, or to try and negotiate a short sale. When in doubt, be sure to check with the IRS regarding what the rules really are regarding your taxes. There isn’t a lot of negotiating you can do with them, but there are some things you need to know regarding what happens when your mortgage debt is considered “forgiven”.


The word was in the beginning that homeowners were able to get special tax treatment because they were doing a short sale, but there is a fine line there. Initially the only way for someone to be able to get a short sale negotiated on the home was if they had been in the home for more than a year. Those who had just recently purchased a home were not good candidates because they wouldn’t have been in a program that put them underwater like those who had purchased within the past five years.

The idea that bankers had in their head is that those who had purchased within the past several years were slaves to the subprime market, and were more than likely in loans that weren’t really a benefit to the borrower, nor were they loans that were affordable. The challenge is that many borrowers were defaulting on loans no matter what loan they were in. The other catch? The money that was forgiven must have been included in the effort to improve the home. How often did this happen?

Nine times out of ten, borrowers were looking to pay off other debt when they refinanced; not looking to do an addition to the home. So, this means that the population by which these standards are met is so limited.

-Mayer Dallal

Wise Words from Warren Buffet

Warren Buffet has been revered as the man to look to with answers regarding stocks, bonds, and much more when it comes to investments, and naturally he has something to say about the housing market too. I have to say, while I don’t always agree with everything I hear, he made a pretty good statement regarding housing and its current state along with the government and how they fit into this mess.


Buffet said; “Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house that they can afford.” Wow! I couldn’t have said this any better, and it’s something that our country needs to get a hold of and quickly. Time is running out on our country to get wise, and we have no other option but to enforce better lending practices.

In Buffet’s opinion, there will be a recovery and he believes that it will happen within a year or so. I know that there are many who claim to believe this, and hopefully with a rash of new and young buyers we can make this all possible. A friend of mine in Ohio is seeing that there are many homes not always being sold, but many offers for lease option to buy, rent, or even for a land contract.

Our housing climate is a little different, but in some way we are seeing things a little different than we used to. My hope is that banks, lenders, and officials will adopt Buffet’s attitude, because the clock is ticking and we simply cannot afford to go through this again as a country.

-Mayer Dallal