Hello, Again!
October 17, 2008
I know, I haven’t posted anything on my Blog in ages!
Not many things have changed for the best, but if anything, they’ve gotten worse in the Real Estate Market. Fortunately for Palo Alto, while it is true that property price reductions are abundant throughout, its market continues to hold itself pretty well in spite of all the negative reports in the media.
Based on my own experience and that of fellow Realtors in my office, Open Houses are very well attended. It seems that there’s plenty of money stored somewhere out there in coffers, mattrasses or what have you, ready to make a move. The question looming in the air is “What’s going to happen?” The answer to that question is, of course, answered with a barrage of speculations resulting from the complexity of the situation.
With greed as the driving force, poor and irresponsible decisions were made on the part of many. Others made them due to ignorance or due to language barriers that prevented them to clearly understand what they were getting into, or were misled by dishonest lenders. Easy and inexpensive money was used in ways that now seem unthinkable allowing anybody to place bids on sales over asking price that resulted in inflated property values throughout the nation. Then the defaults began…! Now somebody has to pay for the mess. That somebody is you, the taxpayer. The “Rescue Plan” signed by President Bush is a mixed blessing and the problems we are facingn may have to continue until confidence on and among those in the lending business is restored and the Rescue Plan benefits begin to be implemented.
In the mean time, the opportunities for buyers with good credit and money are abundant. They haven’t had a better market than this as interest rates are low and sellers are willing to negotiate anything in order to move on. Those who intend to take advantage of the $729,500 Conforming Loan Limits must close their transactions before December 31, 2008, which means they must be in contract by November 30, 2008 if they opt for a 30 day close.
Yesterday evening I attended a Foreclosure Prevention Workshop hosted by “EPA CAN DO” and Community Legal Services in East Palo Alto. “EPA CAN DO” stands for East Palo Alto Community Alliance Neighborhood Development Organization and is a membership-based Community Development Corporation.
The workshop took place at the Fair Oaks Community Center in Redwood City. It was sponsored by Wells Fargo Bank, Citybank, San Mateo County, City of Redwood City, IndyMac Bank, Washington Mutual-Chase, Meriwest Credit Union and the Fair Oaks Community Center Redwood City.
Several topics in relation to Foreclosure were discussed by Attorneys, Real Estate Professionals and Lenders. Among the most salient where the importance of seeking legal and financial advice as soon as possible when at risk of Foreclosure, the pressing need to develop a Family Budget as a tool to work with the lenders in negotiating a loan modification and options available to those at risk.
According to Greg Meyers, Community Relations Manager at Meriwest Credit Union, there are “Six Warning Signs of Financial Troubles”:
1- More than 20% of your income is going to pay your credit cards
2- You’re borrowing money to make payments on loans that you already have
3- You’re frequently at, near, or over your credit card limit
4- You’re paying your bills late or putting off bills to the doctor
5- You’re paying your bills late or putting off bills to the doctor because you don’t think you have enough money
6- You’re working overtime or second job to cover food, housing or other living expenses
If you or anyone you know is at risk of your home due to foreclosure because you have received a Notice of Default from your lender, contact EPA CAN DO As soon as possible. Don’t lose your home due to inaction!
They offer assistance FREE OF CHARGE! Here is their contact information:
EPA CAN DO
2369 Universtity Avenue – East Palo Alto, CA 94303
Phone: (650) 473-9838
Web: www.epacando.org
