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It really Is This easy

If you're like most folks you understand the concept of supply and demand. And much of the housing crisis is based on to much supply(houses) and too little demand(buyers). So we can see that there is a potential solution in just reversing the numbers...like less supply(houses)=more demand( buyers), will cause prices to increase. That's the way it was up till the last year or so. And it's where we have to get to make the teetering go away. So what would that mean?

Well we hear of all the noble things the government is saying they are going to do to clean up the mess: punish the lenders, bail out the struggling homeowners. And most of that is pure crap. It's typical political feel good talk to make you think they know what they are doing. And in the end it's all a blame game so someone takes a fall for the mess. After all, in todays' society isn't the most important thing to have someone to blame for our problems?

Here's what is really happening. Right now is the hardest time I have ever seen to get a loan closed. Whether it's a refinance or a purchase. It is very, very difficult. And the reason is that lenders have taken huge loses and the government has stepped in with their mighty club foot and scared everyone into inerta. And the result is nothing is getting done.

Want to solve the problem?

Then make ways for people to buy homes. Of course they need to be qualified, but make it easier rather than harder. Make it easier for the loan officer, the realtor, the title company, the appraiser...easier for all. For when you do, it's then easier for the borrower, and that means more is accomplished and the cycle is turned around.

Everyone is soft peddling waiting for the other shoe to drop. Why not pick up the shoes and start a new dance. Maybe the "Homeowner Waltz",... that would be better than the "Poor Poor Pitiful Me" that's now being sung.

Really folks it's that easy. This isn't rocket science. Give people a chance to buy in this market and they will do it.

Think about it. This is one of the best markets ever. Prices are the lowest in several years and interest rates are just super. That's a perfect buyers combo.

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I listen to the news and they talk about home sales being down and buyers not returning to the market. That's not true. The buyers are ready, I talk to them everyday. There just isn't adequate financing available. And when a contract is started there's a good chance it will fall through because of how amazing difficulty it is securing financing. And it is the stupidity of this dilemma that is causing the mess to continue.

Sometimes the best way for the train to go forward is for everyone to get off the tracks.

The Good, The Bad, the Ugly 

Do you know the difference between a kick in the butt and kickin' butt? It's a bit like my former brother in law Dick use to say.."sometimes you're the windshield and sometimes you're the bug." And it's now like that in California real estate. Just look at this recent announcement from the California Association of realtors.

California freefall: Home prices fell 26% in February

Update: "Declining Markers"

Lenders have now decided that certain counties are "declining market" areas, meaning the value of homes is going down. So in their eternal knowledge and kind community spirit they have decided they would cut back the L.T.V. (loan to value) percent allowable on loans in those areas. Right now the decline is 5% with more to come. What that means to borrowers is you now have to come up with more down payment if you're buying, and you will get less equity out of your home on a refinance.

An example would be if the loan matrix said they would finance your loan at 95% LTV, if you live in the wrong area they would only finance 90% on the same loan and rates. What this also means is that borrowers will look towards non declining areas for purchases, there by driving prices down even further in the declining counties, so the prophesy becomes self fulfilling. This lovely move, just makes it ever harder for clients to get a deal done. But lenders are in the "cover their butts" mode and this reflects that position.

Alert:... If you have a variable rate loan, with a negative balance, meaning you aren't  paying all your interest and none of your principle, you must convert to a fixed rate as quickly as possible.

Here is what's happening. With values declining and compressing equity, and if your balance is rising due to interest not being paid, each month you are loosing money, and it could be a lot. And while you can't due anything about the market dropping, you can do something about the financing. And if you don't move on this in time...like now... you may not be able to do anything as you will have lost too much equity to qualify for a refinance. So seriously folks, take action. This is really important. Need answers....call...today.

Purchases:

Like no time in recent memory there are more opportunities for buying a home with great rates and pricing.

You'll remember the long lines just a couple of years ago where home buyers stood out side new home developments trying to get on the precious "approved buyers list". What a hassle and frustration. Now the lists and the lines are gone, and so are the high prices. What's left are bargains and amazing concessions. Builders are offering huge incentives including down payments to get people into a home. And for many it couldn't come at a better time.

Yes, prices have dropped, along with rates, and that simply means you can buy more home today for less monthly outgo than anytime in the last several years. 

And financing is still good. Fixed rates are very popular, but the variable rate still works for those needing lower payments for a period of time. The difference can be hundreds of dollars each month.

Where are the bargains? It would seem everywhere. But is that where you should buy? A definite "no" is in order. There are some areas that have experienced a huge drop in value and the drop will last a long time. Just about any where in the California central valley is in trouble. Buying in these areas is only for those wanting to stay in the home for a long time and aren't worried about value, equity or possibly moving.

Alert: Stockton, Ca is one of the hardest hit foreclosure areas in the country. Huge amount of folks have lost their dream to the auction gavel. Be careful if considering buying in this area as more declining values are predicted. Also...caution in Solano County and East Contra Costa County. Again, way over priced and dropping with no bottom in sight. Out of Ca., be careful of Detroit and Flint, Michigan, Florida, Las Vegas, and the Inland Empire of Southern Ca. Other areas are also affected but not to the same degree.

For most folks finding the right home in the right area is critically important. And it's much more than price. Don't be fooled by a price less than the last appraisal. So what. It was probably overpriced when the appraisal was done. And even with the reduction it might still be over priced.

And don't be fooled by short sales and foreclosures. Stop thinking that must mean a good deal. Often it doesn't. People think that buying a foreclosure means they are getting a bargain. It only means the bank owns the property because the last owners couldn't make their payments. That doesn't mean it's a bargain. And buying a foreclosure or a short sale (a short sale is when you buy the property for less than is owed on it) is nothing less than a hassle. For most people it's frustrating and a dead end. There are other ways to get a good deal. In the bay area, Contra Costa County, Alameda, Solano, San Francisco County...deals are alive and available. You just need to know where to look and what to look for.  

We can help. We know the market and where you can get a deal and where you can't. We have the right people with years of experience who can make the process simple, quick, and set you on the road to building significant profits.

Here are some keys:

1, Pay no attention to what the old appraisal said or what you're told was the value. Useless today.

2, Work only with a pro who can get you the advise you need.

3, Get pre-qualified for your purchase. Most sellers wont talk to you until they know you have the ability to buy.

4, The further out you go from the central bay area hub the better deal you can get.

5, A down payment is king, but you can get 100% financing with a decent credit score.

Look at your credit...any mistakes. If you call the creditors you can often get corrections made. Take those corrections to Rate Is Low and we can get the credit bureau to change your score in 72 hours. That will defiantly make buying at a rate you will love much easier.

Here is the bottom line...rates are great...prices are down...payments are lower...opportunity abounds.

Refinancing: While the refinance market has been hard hit by a lack of programs, there are still great opportunities. If you need a conforming loan (under $417,000) there are new govt programs and the rate is low all the way to 100% loan to value for both a purchase and refinance. Many folks are leaving the variable loans for this program.

And the rate is low for variables also. Some programs starting at 2% on option loans. These low rate programs are used to consolidate bills and often get cash out when you're trying to keep your payments low. Don't be afraid of a variable rate. They can be of huge value and have helped many folks out of a serious bind.

Commercial property: Rate Is Low has have an extensive number of programs designed to increase your bottom line on investment property. We understand commercial lending and know how to maximize your profit. If you're in the market to make a purchase with designs on building wealth, we can help. Anywhere in the country...and any kind of property...we have the right program. And your rate is low on commercial lending, with the hardest hitting value and terms anywhere.