Save My Real Estate Deal

Last year this time, my wife and I were on vacation in Mexico. Now there is a celebration to be a part of. . . Day of the Dead (Dia de los Mortes). It is a really cool way to celebrate. The locals take plates of food & beverages and the favorite things in life their deceased relatives enjoyed to the gravesites. It is a celebration of their lives on earth, a rememberance of the time spent with the departed and a way of tribute and honor.

If you ever have a choice for a vacation next year, go to Mexico during our Halloween week and celebrate the Day of the Dead. You won't be disappointed.

Well FEMA did a real neat Smoke and Mirrors job on a 'press conference' last week (10/23/07)...by having employees pose as reporters because the announced press conference only gave the local media 15 minutes to assemble.

Really dumb move on the Press Office (it is an extension of the Directors Office on the 8th Floor at HQ in Washington DC).

You'd think that upper management would have learned by now--apparently not.

But let's not bash the Rank and File employees of FEMA--they are really great people who believe in the programs, missions and aims of the Agency. The knuckleheads inside the beltway are so immersed in the bureaucratic existence that they really know how to sabotage those who do the good work.

To the management--I say it is time to earn a real living--go work at a disaster for 2 or more months.

To the Rank and File--I say keep up the good work!

Ok history buffs:

On this date in 1962-the trial to convict Nelson Mandela in Cape Town, South Africa begins--charged with Treason.

California has always been associcated with earthquakes. In the past 2 days, Southern California has been plagued with wild fires--some accidential (downed powerlines, vehicle fire) and others are just out right arson. Many hold the belief that CA will sucumb to the 'big one'...we may be spared that only to be cooked by wild fires--the west is in it's 8 year of below average rain fall--a.k.a. Drought.

On the lighter side, when those who say CA doesn't have seasons---I say bunk!

We have 4 seasons: Wildfires, mudslides, earthquakes and drought.

Recently this week I received a call from an upset spouse--whom I had never met or spoken with before the call.  She was distraught about mortgage loan disclousure documents he husband had gotten in the mail for a $825,000 loan for the purchase of a $1,100,000 home in the Pasadena area.

Her husband had never applied for the loan, nor did they even know where the property was located. To add to the story, he had been unemployed for 4mos and they were just making ends meet to make the mortgage payments on their modest home in the San Berandino High Desert area.

Their only clue as to how his idenity was stolen, was that he recently applied for a postion with a law enforcement agency in Los Angeles County and couple other employers via on-line.

As of this date, the source of how his ID was purloined is under investigation by local and federal authorities.

The ID theives are running a very complex property acquistion and flipping scheme using false employers, phony banking information, straw buyers to illegally acquire property at the expense of innocent consumers. All of the loans that have been made to this ring, have all gone into foreclosure, thereby adding debts and foreclosures to innocent consumer's credit profile. These activities can remain on your credit profile for decades and are nearly impossible to remove.

The lesson here--be careful and check your credit at a minimum annually.

FEMA is being sued again over the the trailers used for temporary housing for those affected by Hurricanes Katrina and Rita due to alledged high levels or elevated levels of formaldihide in the building materials, but those who are attempting to live their lives forever in a FEMA trailer FOR FREE (cost to the tax payer).

Get a grip! Get a job! Get a real home!

FEMA is not an entitlement program. FEMA's programs are solely designed to be temporary and non-perminant as a stepping stone to rebuild after a disaster.  Long-term welfare gadflies are determined to make the programs another black endless hole of entitlement. Enough is enough.

World wide economies now make it more possible for non-american interests to buy what had been traditionally scared territory. The largest buyers of American companies and even some local governments are China, India and Saudi Arabian Peninsula oil countries.

You and I may not like, but there is little that we can do about it. Our government is all to happy to allow the sales because of tax revenue is generated. For the most part, many of these foriegn investors may be beneficial becuase they are less likely to run their newly acquired assets into the group. They like the American lable and they want these companies to profit.

Just as back at the turn of the last century (1900), we are seeing a new type revolution...only this time it is not us--it is the emerging 3rd world countries who have the passion, desire, education (from the US), population and cash to make things happen.

I believe that the US is going to need to work harder than ever to remain the top dog.  We have a generation gap already against us, that will take the next 20-25 years to begin to show promise. The burden is now resting on the GenXers to carry us through this period. But with about 45 million in this population group--it's a tough road to hoe.  Considering the War generation (70 million) and the Baby Boomers (74 million)--the GenXers have a lot to support. It is the Millinial Generation (expected to be 96 million. Those born after 1996) that is were the power to restore the US will come from.

With the down cycle evident and  touching more and more lives even those not in the mortgage biz, we are seeing that the new opportunity for home loans lies in FHA Insured Financing. Having worked on over 400 FHA loans in my career, the upside is that they offer a lot of flexibility to offset other stringent requirments, such as requiring full documentation of income, employment and assets.

Examples: Borrowers must source their funds (prove where it comes from) but do not have season the money (keeping money in their possession for 60+ days).

Borrower does pay a penatly price for taking cash out of their home and can do so up to 90% of the value of the home.

Alternative sources of credit can be used when the credit report shows no credit.

No Credit scores are required.

No cash reserves are required on single family residents (required on 2-4).

Borrower can be in a Chapter 13 bankruptcy (1yr seasoned & w/court permission) a get a home loan!

These are just a few of the really cool things FHA allows.