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Trapped by House Payments You Can't Afford?

Interest Only, Stated Income, Option ARMS and all the other easy-to-obtain band-aid mortgages loans of the once-booming housing market, have placed some homeowners in an extremely critical position. They need stitches to close the huge gap between what they earn and what they owe. Are you feeling trapped in a home you can no longer afford, but can't afford to sell? Are you among the growing number of homeowners that are wondering what they should do next? Read More….

Foreclosures rise more than 300 percent in the two-county Inland region

The Inland Empire homeowners are losing their homes at an alarming rate due to risky subprime mortgages. Take a look at this article from Knight Ridder Tribune Business News.

Click Here

FHA Might Be The Way!

My son, a lender at Majestic Mortgage just gave me a hot mortgage tip. This could help you:

• Is your credit score 620 or below?
• Have you had any late mortgage payments in the last 12 months?
• Is your loan amount under $362,760?
• Is that loan balance less than 97.15% of your home’s value?
• Do you have an adjustable rate mortgage set to adjust?

If you answered YES to the above and you’re looking for a way out, how does this sound?

• A 30-year fixed loan With NO prepayment penalty
• In the mid-upper 6% range With a 1% origination fee
• With no junk fee charges

Interested? If you have a sub-prime mortgage loan and need to get out of because it is about to adjust to a payment you can’t afford then you might want to contact my son, Mike Martin or his Processor, Bea at (909) 466-4889. You could be the perfect candidate for an FHA loan. Imagine an affordable monthly mortgage payment plus stability to your life as well.

Sub-prime adjustable rate mortgages are ticking time bombs, if you are in one and want out, inquire about FHA refinancing. Remember, not every lender is FHA approved.

RSS

Wondering what this little RSS orange insignia that's popping up everywhere is all about? Believe it or not, so was I? I found out that it’s called Really Simple Syndication. OK and what does that mean, you ask? It's gotta be something really technical right? No, it actually serves a very good purpose.

RSS solves a problem for people who regularly use the web. It allows you to easily stay informed by retrieving the latest content from the sites you are interested in. You save time by not needing to visit each site individually. You ensure your privacy, by not needing to join each site's email newsletter. Many news-related sites, blogs and other online publishers syndicate their content as an RSS Feed to whoever wants it. What the RSS button does (aka RSS Feed) is allows you to indicate that you like a particular blog or podcast, and would like to stay current with their content. By clicking on the RSS button you’ll indicate that you would like to stay apprised to the latest publications or broadcasts. It’s as simple as clicking the button and will be notified every time someone posts a new thought on your favorite blog or podcast!

So, click the RSS button off to the side of this blog!

Exactly what does the fed fund interest rate cut mean?

First Business - Anticipating the Cut
3 min - Aug 23, 2007
It's been highly anticipated, but exactly how could an interest rate cut impact the fast-falling mortgage market?

TOP BLOGS, ACCORDING TO CNET

With more than 14 million blogs in existence and another 80,000 being created each day, how is a person supposed to find the ones worth reading? Whenever I to research technology of any sort, I head over to CNet to check out their editorials and user reviews. Whether I'm shopping a color printer, digital camera, laptop or cell phone, I know I can always trust what they have to say. Last time I visited, I was a little surprised to find something entirely different...they are rating blogs that focus on technology. I thought you might be interested in their 100 choices because they could end up providing valuable information that you could use:

Top100 blogs according to CNet:

• 1080Eye
• Alice Hill's Real Tech News
• Apple Matters
• AppleInsider
• Ars Technica
• Between the Lines
• Beyond VC
• Boing Boing
• Burnham's Beat
• BusinessWeek's Blogspotting
• BusinessWeek's The Tech Beat
• BuzzMachine
• C:\PIRILLO.EXE
• Channel 9
• Cleantech Investing
• Cyberjournalist.net
• Dan Bricklin's Log
• Daring Fireball
• Declan McCullagh's Politech
• digg
• Doc Searls Weblog
• Engadget
• Fixyourthinking.com
• Freedom to Tinker
• Geek Culture
• Geek News Central
• Gizmodo
• GPS Review
• Groklaw
• Hypebot
• IEBlog
• iLounge
• Jeremy Zawodny's blog
• JKOnTheRun
• John Battelle's Searchblog
• Joi Ito's Web
• Jon's Radio
• Jonathan's Blog
• Justin's Guide
• Kim Cameron's Identity Weblog
• Kotaku
• Kottke.org
• Kuro5hin.org
• Lawrence Lessig
• Lifehacker
• Linux-Watch
• LonghornBlogs.com
• MacMinute
• Matt McAlister
• Micro Persuasion
• Microsoft Security Response Center
• Microsoft Watch from Mary Jo Foley
• Mini-Microsoft
• Molly
• MozillaZine
• Neowin.net
• New Media Musings
• O’Reilly Radar
• Om Malik on Broadband
• Ongoing
• PaidContent.org
• PCS Intel
• PhysOrg Weblog
• PressThink
• PVRblog
• Responsible Nanotechnology
• RFID Weblog
• Romenesko
• Schneier on Security
• Science Blog
• Scobleizer
• Scott Rosenberg’s Links & Comment
• Scripting News
• Search Engine Watch
• Seattle Post-Intelligencer Microsoft Blog
• Security Fix
• Seth Godin’s Blog
• Silicon Valley Watcher
• Slashdot
• Spamroll
• Sunbeltblog
• SunMink
• TaoSecurity
• Tech Confidential Blog
• TechCrunch
• Techdirt
• Tecosystems
• Terra Nova
• The Blog Herald
• The Gadgeteer
• The Internet Stock Blog
• The Mac Observer
• Things That … Make You Go Hmm
• Threadwatch.org
• TiVoBlog.com
• TVOver.net
• Venture Chronicles
• Vitalsecurity.org
• whatsnextblog
• XplanaZine

Market Condition Report - August 2007

MARKET CONDITION REPORT INLAND EMPIRE - WEST END August 2007

THIS YEAR LAST YEAR

Year to Date Sales

This Year	Last Year	Change	% Change
3,217	4,917	-1,700	-34.6%

The market is remaining rather constant relative to last year varying by a few percentage points either way. Last report was -35.3 %. This is generally in line with other areas surveyed. There are markets performing at a lower level than Inland Empire-West (Victor Valley -51%), but there is also Santa Barbara at +6%. This implies the current market condition varies according to area and price class. Note from the History of Median Sales Price the market peaked in terms of price in the late spring-early summer of 2006. MARKET QUICK LOOK

Indicator	Comment - Current Position and Movement	Buyer	Seller	Neutral
DEMAND	Increasing moderately-slower for CONDO. No trend.		-	-
SUPPLY	Rising slowly-near peak.		-	-
PERCENT SELLING (Market Efficiency)	Increased 2 points-too small to be meaningful. No trend.		-	-
DAYS ON MARKET	Steady.	-	-
MONTHS SUPPLY	Declining slowly-movement favorable to seller. No trend.		-	-
60 DAY ABSORB (Market Speed)	Very small positive movement. Not meaningful.		-	-
PRICES	List, Ask, Close Price-off moderately. Negative trend.		-	-
FUTURE PRICE INDICATOR	Expect declines to limit of $450K for SFR and $329K for CONDO.		-	-

In terms of current position the market is clearly favorable to the buyer. In terms of movement the market is moving toward the seller. However, this movement is very slight and tentative. No clear trends are evident except a tendency to declining prices (see graph History of Median Sales Price).

MCR TIP The 60 DAY ABSORB RATE measures market speed. Another way to think about the ABSORB RATE is the rate that listings are converted to closings in a 60 day period. The higher the ABSORB RATE, the quicker this conversion is occurring and the more the market is moving toward the seller. The opposite is true.

WORDS OF WISDOM Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes (Peter Drucker).

Click here to view Market Condition Report.

Fed Discount Window Cut

Fed Discount Window Cut
What does it mean for you?

The Federal Reserve has taken significant action in the last few weeks due to the credit crunch. And now they've made an unexpected move by cutting the discount window rate – which is great news. I'll get to that in a minute, but first let's look at recent events and understand what they mean.

Market movement
To date, over 120 mortgage companies have closed their doors due to reduced liquidity. The result: Borrowers who want to take out non-conforming loans have fewer, more expensive options.

Many media outlets have incorrectly added fuel to the fire by stating that mortgage lending has stopped altogether and that borrowers can't get a loan without a 20% down-payment. This is not true.

Conforming interest rates and loan programs, those backed by Fannie Mae and Freddie Mac, have not been significantly impacted by recent events. Even better, interest rates have come down from recent highs. While this is good news, the market is experiencing unprecedented volatility and changes could come at any time. Borrowers need to act swiftly and decisively in today's climate.

What did the Fed do?
Now back to the discount rate. This is the interest rate charged to commercial banks and other depository institutions on the loans they receive from their regional Federal Reserve Bank's lending facility. The Fed's decision to cut this rate provides stability in the financial markets and this can be good for all of us.

How exactly does this provide stability? Here's an example: Imagine you just wrecked your car and it requires $5,000 worth of repairs. You have a short-term need for cash to pay your mechanic. Even though you know you will eventually be reimbursed by your insurance company, you still need the cash now. So do you sell off stocks to get the cash, or tap into an equity line of credit? Most likely, you draw from that line of credit rather than liquidating a long-term investment.

This is what the banks are facing in today's liquidity crisis. And Bernanke's move helps them avoid long-term damage by supplying access to short-term cash.

It's important to note that the discount rate is different than the Fed Funds Rate, which directly impacts interest rates that you pay for Home Equity Lines of Credit, credit cards, and automobile loans. Most importantly, the discount window rate cut does not directly impact mortgage rates.

What should you do now?
Information, knowledge, and expertise are the building blocks of sound financial decision making. If you are considering financing or are in the process of financing a home, you should tap into the resources of a skilled mortgage professional. I strongly encourage you to contact me as soon as possible. I would welcome the chance to help you navigate these choppy waters.

The New Shift In Housing Trends

My Buyer's Agent has had 5 clients in the past 2 months that she placed in lease properties. Normally, we might lease 3-5 properties a year. People just can't qualify to buy with the stricter lending criteria and the fewer loan products out there to accommodate the borrower with credit challenges.

Economic Focus Volume 11, Issue 29, For the week of August 13, 2007 wrote this insightftful article:

The rush to home ownership over the past decade has created a natural rise in rental vacancy rates. Exotic mortgage products created a wave of homebuyers who would not otherwise have qualified. This rapid shift in population significantly impacted the rental market leaving behind higher than usual vacancies.

As the housing market cools there is an increasing household shift back to rentals, creating a growing inventory of new and existing homes on the market. The residential rental market is a natural destination for these displaced households, so there is little surprise that rental vacancies improved over this past month.

This movement of households is further supported by the fall in homeownership which reached 66.2% in the second quarter, its lowest level since the 2nd Quarter of 2003.

First was the shift from rentals to housing, fueled by creative and exotic financing. Then a shift back to rentals, fueled by a tightening in credit and underwriting standards.

Just as a great rush to homeownership weakened the rental housing market while driving appreciation in home prices; we now see the flight from homeownership depressing the housing market and starting to create a premium on rental housing.

The creation of new qualified households has not been able to fill the vacuum created by the shift in housing. Additionally, a trend toward extended family units and young family members staying in the nest contributed to a 1st Quarter 2007 record high of a 2.8% vacancy in existing homes.

This movement in the market is creating exceptional opportunities for those who anticipate it and are brave enough to act. You know the old adage: buy low and sell high. This time around the signals are easier to read. There is ample opportunity for those willing to take the risk.

I'd like your feedback. Would you like to see a list of available local leases posted on this blog? Let me hear from you.

Credit Crisis Cripples The Market

Just last week, American Home Mortgage and its wholesale counterpart, American Brokers Conduit, became the latest casualties of the credit crisis. Last year, this company closed over $58 billion in home loans. Despite being, by all accounts, a well-run business, market conditions forced them to file for bankruptcy, leaving nearly $800 million in loans unable to close. Tens of thousands of borrowers have now been left without financing as a result of companies like this going under.

Clearly, with over 100 national lenders having now closed shop in the last eight months, this is no longer simply a subprime lending issue. The credit market is experiencing unprecedented turmoil that, according to Mike Perry, CEO of Indymac Bancorp, is "broader and more serious than past disruptions."

What does this mean to the real estate market?

Sellers can no longer be reluctant to accept offers or reduce prices. Tightening credit and diminishing mortgage products will continue to reduce the pool of qualified buyers. This, along with the increase in national inventories, means now is not the time to hold out for the "best" price possible.

Buyers with credit issues or who have difficulty providing required documentation can no longer sit on the fence. If market conditions change, buyers who qualify for a loan today may not qualify a few weeks from now for the same exact loan. Just this week, many lenders have stopped offering no-Doc loans, and some lenders have even pulled back on all forms of stated loans. As market conditions continue to change, a buyer's pre-approval status can disappear even more quickly, delaying or spoiling the deal.

Subprime and Alt-A refi candidates, especially those with ARMs scheduled to reset over the next 12 months, need to act now – even those with a pre-payment penalty. ARMs borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets.

What does this mean to you?

As educated Real Estate and Mortgage professionals, we feel it’s our responsibility to educate and inform you. Please feel free to utilize our experience and resources to help navigate through these turbulent times. Don't leave your future in the hands of random mortgage providers. We’re local, accountable, and you can trust us to discuss this or any other strategies to survive in today's challenging market. Don’t hesitate to call us. We’re happy to speak with you.

Reverse Mortgage Drawbacks

Reverse Mortgages are gaining more and more steam due to the vast amount of benefits and heavy regulation in the industry.

Despite the various benefits of a reverse mortgage, it is crucial to consider its drawbacks prior to securing one.

When the homeowner dies or permanently moves out of his home, the home will need to be sold in order to pay off the mortgage. The mortgage will be due at this time, in a lump sum. If the homeowner or his inheritors want to keep the home, they would have to make payment on the home within a year of the mortgage becoming due. However, the heir can refinance the home to a loan that better fits their needs and budgets.

There are quite substantial fees involved in a reverse mortgage. This type of mortgage is generally more expensive than a regular mortgage or loan. In the beginning, the homeowner is expected to pay mortgage insurance premium, origination fee, appraisal fee and closing costs. In short, a $200,000 reverse mortgage may have $10,000 worth of fees involved with it. The fees are deducted from the loan prior to the funds being released to the homeowner. There may be additional servicing fees to be incurred during the term of the mortgage.

If the homeowner still holds a mortgage on the home when he seeks out the reverse mortgage, the mortgage will need to be paid off in full with the funds from the reverse mortgage and/or personal funds as needed.

Call Toll-Free 1-877-476-9600 to speak with one of our Loan Specialist to find out more about reverse mortgages or to request more information. There is no obligation or cost for their services.

Not Your Average Joe

That’s Right . . . It’s Trader Joe’s! And they’re finally coming to Rancho Cucamonga.

Trader Joe’s one of Southern Californians most recognized specialty grocers in the marketplace has found a home at Haven Avenue and the 210 freeway in the Haven Village Shopping Center. For Trader Joe fans that’s a big reason to celebrate.

Trader Joe’s, a privately owned specialty grocery chain with approximately 280 stores across the country, offers a variety of imported gourmet, organic and vegetarian foods, unusual frozen foods, domestic and imported wine and basics like bread, cereal, eggs, and produce. They also carry non-food items like personal hygiene products, household cleaners, vitamins, pet food, plants and flowers.

The Rancho Cucamonga Trader Joe’s, which is planning to open sometime in the 4th quarter of 2007, will be located in the Haven Village Shopping Center next to the newly remodeled Von’s where the old Sav-on Pharmacy use to be.

Kudos to the Rancho Cucamonga Redevelopment Agency for having a Trader Joe’s join the growing roster of sought-after retailers that already call Rancho Cucamonga home.

A SPECIAL ANNOUNCEMENT FROM THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY

Reverse Mortgage Myths

The lender will own my home if I take out a Reverse Mortgage.
Not true. The homeowner retains title to their home throughout the life of the Reverse Mortgage.

My heirs will be responsible for repayment of the Reverse Mortgage.
Not True. The Reverse Mortgage is a non-recourse loan. The lender can only look for repayment from the sale of the property, although the repayment may be made from any other source and your heirs may keep the home. The lender cannot look to the estate for repayment of the loan.

Your home must be debt free to qualify for a Reverse Mortgage.
Not True. You may have a mortgage or other debt on your home. The mortgage or debt however, must be paid off first with the proceeds of the reverse mortgage.

Only those with excellent credit, income and/or health can qualify.
Not True. There are no credit, income or health requirements for a Reverse Mortgage. The only requirements are that you be at least 62 years of age, that the home be your primary residence and that you have equity in the home.

I will need to make monthly payments on the Reverse Mortgage.
Not True. The homeowner is only responsible for paying the taxes, insurance and upkeep of the home. As long as the home is your primary residence you will never have to make a payment.

Only the “cash poor” or desolate seniors can benefit from the Reverse Mortgage.
Not True. Even though some seniors may have a greater need than others for the cash or monthly income, the Reverse Mortgage can also be an excellent financial or estate planning tool.

Call Toll-Free 1-877-476-9600 to speak with one of our Loan Specialist to find out more about reverse mortgages or to request more information. There is no obligation or cost for their services.

Market Condition Report - July 2007

INLAND EMPIRE WEST
July 8, 2007
PROVIDED BY CHICAGO TITLE

The market stalls as demand declines and supply is relatively constant.

Price weakness looks inevitable as pending price is less than current closing price.

See all the details in the attached Market Condition Report (MCR) for the Inland Empire West area.

Selling 3 Times Is Not The Charm

Oh my gosh, it fell out of escrow a second time! Back on the market for the third time? As if once wasn’t enough?

That's the reality you’re hearing from a lot of sellers as this market cools off and the buyer’s lenders scrutinize the property values on the homes they are trying to buy with a giant magnifying glass.

Why three times, you ask? Take a look at this very real scenario . . .

A seller lists his home for sale higher than his agent recommends. The first time around the buyer and seller agreed upon a price. Of course it was more than the buyer wanted to pay and less than the seller wanted to accept, but a deal no less.

Read more>>

Don't Miss Out On What Rancho Cucamonga Has To Offer!

Living in Rancho Cucamonga is blast - but do you really know how much there is to do here? It's a good bet you'll find something new for you and your family to enjoy in the Rancho Funbook. Check out more here!

Looking for Fun? Visit the Victoria Gardens Cultural Center!

There are so many things to do at the Victoria Gardens Cultural Center, you won't know where to start! Visit the Paul A. Biane Library at Victoria Gardens, the Lewis Family Playhouse, and Celebration Hall. Find out more by clicking here.

Protect Yourself. Protect Your Identity.

WHAT HAPPENS AFTER YOUR MORTGAGE ORIGINATOR PULLS YOUR CREDIT REPORT?

1. Your mortgage originator pulls your credit report from the credit bureaus to obtain your credit score and process your loan application.

2. The credit bureaus may place your personal information on a prescreened list (also called a trigger list).

3. Within hours the credit bureaus may sell the list to hundreds of companies. Your mortgage originator does not authorize the sale of your personal information and cannot stop it. Only you have the ability to stop this practice.

4. Within hours you begin to receive phone solicitations for mortgage products from numbers and companies you don’t recognize.

5. Within days you begin to receive mail solicitations for mortgage products.

WHAT TO LOOK OUT FOR

1. The “bait-and-switch” scheme. This scheme is run by companies who get business by luring consumers in with low rates and then switching the loan product.

2. Solicitations (phone and mail) that appear to be from your current mortgage company. Always confirm who you are speaking with.

3. Solicitations asking for pin numbers, passwords, your mother’s maiden name and/or your social security number.

4. If you believe you have been the target of one of these deceitful practices or some other abuse of the system, please report the incident to the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

WHAT YOU CAN DO

1. Opt-Out of prescreened offers.

2. Register with the Do-Not-Call Registry, www.donotcall.gov.

3. Contact the Federal Trade Commission.

4. Contact Congress.

5. Stop other forms of direct marketing by visiting the Direct Mail Association's Web site at: www.dmaconsumers.org/consumerassistance.html.

Worried? Want To Do More To Protect Your Information?

Voice your concerns by calling your Congressional Representative at 202-224-3121.

FAQs

WHAT IS A PRESCREENED OFFER OF CREDIT OR INSURANCE?

A firm offer of credit or insurance is defined as any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on the consumer's credit report, to meet the specific criteria used to select the consumer for the offer, subject to certain confirmation requirements.

WHAT IS OPT-OUT?

Opting-Out refers to the process of removing your name from lists supplied by the Consumer Credit Reporting Companies, Equifax, Experian, Innovis and TransUnion (“Credit Bureaus”), to be used for firm (pre-approved /prescreened) offers of credit or insurance. Your rights as a consumer under the Fair Credit Reporting Act include the right to "Opt-Out" for 5 years or permanently.

HOW TO OPT-OUT

You can opt-out by visiting www.optoutprescreen.com or through the toll-free telephone number, 888-567-8688. When you call or visit the website, you’ll be asked to provide personal information, including your home telephone number, name, Social Security number, and date of birth. The information you provide is confidential and will be used only to process your request to opt out.

DOES EXERCISING MY RIGHT TO OPT-OUT AFFECT MY ABILITY TO APPLY FOR CREDIT OR INSURANCE?

No, removing your name from these lists does not affect your ability to apply for or obtain credit or insurance.

DOES OPTING-OUT IMPROVE MY CREDIT SCORE?

No, since inquiries for firm offers for credit or insurance are not used in calculating credit scores, Opting-Out does not improve your credit score. Similarly, inquiries for firm offers for credit or insurance do not reduce your credit score.

HOW DO I CONTACT THE FTC?

Federal Trade Commission

Consumer Response Center

Room 130600 Pennsylvania Avenue, N.W.

Washington, D.C. 20580

www.ftc.gov/credit/