TEAMBLOG

Dear Friends,

Our lives have or will change dramatically in the coming months and for many years to come. We as Americans have taken a bold and unheralded step to solve a temporary financial problem towards permanent and detrimental solutions which will endanger the sovereignty and the freedoms of our children and our grandchildren.

The grandiose capability of Washington lawmakers we've empowered to spend beyond our means, has become a reality in the form of the largest spending bill in US history, the $787 Billion 'Stimulus Bill'. The reckless abandon of common sense entered the drama on the House floor, when the American public became aware that not one Congressman read the entire 1000+ page bill. The 'Bill' was unable to be reviewed by Congress or even the general public as its contents were 'dumped' on the House floor just  hours before its eventual passage. The largess of it all was uneccesary. A basic reading of American history by anyone can provide the simple outlines of legislative measures and principles which worked in the past to alleviate similar economic challenges as those we are facing today.

We can all agree there is a need for a stimulus in order to sustain our economy. Unfortunately, without fully understanding the contents of the legislation and not focusing on genuine efforts in promoting job growth, meaningful tax cuts for small business or a cut in the payroll tax for all workers, the goals desired are circumspect. We are now left wondering if America is being run by a ship of fools masquerading as diplomats in a journey destined to resemble the events suffered by occupants on the Titanic!

The passage of this legislation is an example of an antiquated ideology foreign in concept to all of our values. The malcontents are now thriving and ensconced in Washington and the legislation signed by the President is the embodiment of a forward rush towards socialism. If you've read any of our blogs, you would notice my genuine concern with the direction of this nation. For the past several months the impending control of the federal government in all of our affairs has become painfully obvious. The bail outs of the corporate entities on Wall Street, the monies diverted to collapsing banks, the 'Stimulus Bill' just passed and signed on February 17th by the President and the Trillion dollar federal budget just announced, are all attempts to end the freedoms and rights Americans have sacrificed their entire lives for.

The 'control' of our livelihoods by being beholden to the Federal Government for all of our needs, is the advent of an economic philosophy similar in scope to regimes in Europe. Many Americans from all walks of life and economic classes, will end up seeking public assistance. This is just one of the various consequences of the financial measures devised by those eager to spend our money without scrutiny or 'transparency'. The configuration of the legislation just passed will provide the 'stimulus' in raising federal taxes to pay for these measures. With local and state taxes added in the mix, a tax revolt similar to the Boston Tea Party is destined to occur and perhaps it's just around the corner. Oh, let's remember to add inflation to the equation, as the inevitable consequence of spending money we do not have for things we do not need.

The hand of government intervention in every facet of our lives is the beginning of an Orwellian control unprecedented in the history of America. We are now in 'unchartered territory' where the transformation of basic core values of hard work to better the lot of our families, the strive for independence, the goals of entrepreneurship, the concept of a free market system and the individual ability to dream of financial success, all of these concepts are being challenged by a discordant number of voices unaware or misinformed of the intrinsic values and qualities engineered by the Founding Fathers.

Business is the engine of capitalism and in turn, democracy. By burdening business owners with additional taxes, the likelihood of a haphazard and lethargic recovery is a foregone conclusion. The idea of redistributing wealth for the betterment of the masses is a concept unworthy of consideration for implementation in this country. Just the thought of this occurring during our lifetimes, reminds any intelligent observer, we are indeed living in dangerous times.

With that being said, I must reveal to you that as we pray for the destiny of this country, we must not fear the trials and tribulations we've been forced to witness or cajoled in becoming unwilling participants. Individually, we must take into account our ability to overcome the challenges and concerted attempts by others to impose a philosophy counter to the mainstream of American thought. There will be a time for reckoning and the truth of all matters will be known by everyone soon enough. In the interim, for those suffering a job loss, a foreclosure, a struggle to pay a mortgage or the stress of making ends meet, you are encouraged to seek recommendations of those worthy of your trust and above all else, to seek Divine guidance as the answers to all prayers will eventually be revealed.

We are facing a time in our nations history where we no longer trust anyone. We've come to realize many of the persons we've placed our trust, have disappointed us time and time again. Our lawmakers, those in corporate offices, members of all facets of journalism and the list of active participants in our daily lives reenforce an attitude of melancholy and foreboding. When we hear a chorus of constant crisis and catastrophe to befall America in speeches from those in Washington to move legislation detrimental to our futures, we are bewildered by such attempts counter to the eternal optimism we as a people have known all along. The only advice I can see to counter the daily avalanche of agony befallen many Americans, is to be patient and pray by seeking the guidance and wisdom needed to solve the misery we've unfortunately created for ourselves.             

Thanks Again

Dear Friends,

On Wednesday, the President offered a plan to stem the tide of foreclosures by providing incentives to banks and lending institutions to provide financing for those homeowners in need of assistance.

The attempt by the federal government to help stabilize the housing market is appreciated, however the $75 Billion associated with this plan will not offer the mortgage relief hoped for.

This problem is complex and needs an experienced and knowledgeable individual at the helm. In my estimation, there are several options or set of problems which need to be explored and resolved.

The plan revolves around homeowners who currently have a first deed of trust on a primary owner occupied residence. The principal balance of the mortgage cannot exceed the current Fannie Mae or Freddie Mac conforming loan limits which are currently at $417,000 for a Single Family Residence. Moreover, there are homeowners that are 'underwater', whereby they owe more in mortgages than the value of their property.

In order to prevent homeowners from being delinquent on their mortgage payments, the government encourages a loan modification or a refinance in order to stall the inevitable. Lowering the interest rate so the mortgage holder is able to pay the note on a timely basis to a 31% Debt To Income Ratio will begin to stabilize the housing market, a goal agreed upon by the Obama administration and FDIC Chairwoman Sheila Bair. 

As previously mentioned, there are homeowners who owe more than the current value of their property. Presumably, the lender will lower the principal mortgage balance to accommodate the guideline of a 31% debt ratio.

While this is the plan being discussed by the administration, as in all government intervention and programs there are pitfalls. Let me explain. 

Who Qualifies?

1. Homeowners who have mortgages exceeding the conforming loan limits over $417,000, will not qualify for this plan. In order to lower the current mortgage payment, the homeowner would either refinance or secure the services of a loan modification company. The negotiator will work on the homeowners' behalf to lower the mortgage payment. The owner can also negotiate with the lender directly in order to save the up front fee charged for a loan modification.

2. If you have a sub prime or a private money loan, you will not qualify for this plan. Many of those facing foreclosure or are struggling to pay their mortgage, obtained their financing from lending institutions which were not approved by Fannie Mae or Freddie Mac. The only options afforded the homeowner with this particular problem are similar in scope as previously mentioned.

3. Many homeowners that are self-employed, may not qualify for this plan. Self-employed borrowers have a difficult time in documenting income as many write off their expenses or receive their wages in cash. If this is the case, a loan modification company might be able to help.

4. Retirees or those on fixed incomes might not qualify for this plan. If you are a homeowner in this predicament, where you are struggling to pay your mortgage, there is a chance you might be able to present your case so the lender can lower your payments. It is my understanding the upcoming underwriting guidelines to be announced on March 4th, will provide additional information on how to proceed in this matter and the plan itself. 

5. If you have a second deed of trust or an equity line of credit on your home, this plan will not be able to help you. The logical and most effective way to help homeowners in distress is to consolidate the current 2nd into a new 1st trust deed, thereby lowering the monthly mortgage payment.

6. If you have a bankruptcy, have a low middle FICO score or have credit problems, you might not qualify for this plan. Conforming underwriters frown on those with credit challenges and the lender must be thoroughly convinced your past or current delinquent mortgage payment history will no longer pose an issue in the future.

7. If you owe more on your mortgage than the value of your house, you might not qualify for this plan. It is my understanding a homeowner will be able to have the mortgage principal reduced if the conforming loan amount guideline is $417,000 or less. Let's say the homeowner owes $300,000 while the property value is $150,000. In this scenario the new plan will cut in half his principal, thereby the homeowner will now owe no more than $150,000. His lender will lower his monthly payment accordingly.

In another scenario, let's say the homeowner owes $500,000 and the property is worth, $300,000. In this instance the borrower must apply for a loan modification or contact his lender directly to either lower his monthly payment, lower the principal balance, give the property back to the lender under a deed in lieu of foreclosure or have the lender provide the time needed to sell the property under a 'short sale'.

The Facts

It has been reported that 92% of all homeowners in this country are weathering the storm and are paying their mortgage obligations in a timely manner.

There were 2.2 million foreclosures in the US for all of 2008. An additional 6 million foreclosures are being forecast in the coming years due to the loss of employment, higher monthly mortgage payments due to adjustable rates set to change this year, and the progression of home values spiraling downward. With these figures and the circumstances Americans are now witnessing, there needs to be a national debate on where all of this activity is headed.

Fairness And Our Future

While many Americans are suffering the loss of their homes due to unemployment or the inability to make prudent and wise decisions in purchasing a home at the outset, the situation we now face affects us all. The foreclosures in our communities devalues our properties by lowering our equity and creating a chronic prophecy of financial hemorrhage in our economy which needs to end. 

Most Americans have the wherewithal to pay their mortgage, their taxes and to live their lives as law abiding citizens. Unfortunately, the financial calamity we are in today, began with the same crowd of evil participants in government and on Wall Street. Their theology of greed, corruption, hubris and incompetence were 'virtues' painfully displayed for us as we sat back and took notice. The pain we are all suffering, emotionally and financially, is a wake up call to throw them out on their ears in the mid-term elections in 2010. It is truly unfortunate there is no one in government today worthy of our trust.  While this new 'rescue plan' is unfair for many of us who play by the rules, the only consolation we have is to be involved in all aspects or issues in regards to the magnitude of government intervention we are now experiencing in our daily lives. It is sad for me to say, these experiences are of our own making and must not be revisited again in our lifetimes. It's time to save this country for our children and future generations of Americans.

 Next Week On The TeamBlog

The effects of the $787 Billion 'Stimulus Bill', additional information in regards to the new mortgage rescue plan and the just signed California Budget.

Mortgage Rates

30 Year Fixed Conforming Rate 4.875%

15 Year Fixed Conforming Rate 4.375%

Both rates are at 1 Point Cost. Appraisal & Processing Fees are waived. Please call for more details at 323-936-3232.

Loan Modifications

We are lowering our fees. Please call our office for more details. We are here to help you!

Thanks Again  

Dear Friends,

Today is a special day for all of us! Valentines Day promotes the most wonderful emotion inherent in all of us where we have the capability to love and love again! Whether our love is for a spouse, our children, our family, friends or a neighbor, today we are fortunate to realize the splendid affection we can give and receive in return.

We are truly content and nurtured by those in our daily lives wherever and whenever we become in contact. The thread of love and mutual respect is the catalyst that provides harmony and comforts our soul.

I for one, while single, I'm happy and fortunate to know that I am loved and I'm capable to love some more! The Lord loves each and everyone of us! How blessed we are!

Maturity and length of time places our past loves in a context where distant memories connects with simple pleasures of remembrance, of a forgotten time remembered once more.

Lord Byron, the eternal romantic of the ages expessed it best in his celebrated poem:

She Walks in Beauty Like The Night

She walks in beauty, like the night

Of cloudless climes and starry skies,

And all that's best of dark and bright

Meet in her aspect and her eyes,

Thus mellowed to that tender light

Which heaven to gaudy days denies.

One shade the more, one ray the less,

Had half impaired the nameless grace

Which waves in every raven tress,

Or softly lightens o'er her face;

Where thoughts serenely sweet express,

How pure, how dear their dwelling place.

And on that cheek, and o'er that brow,

So soft, so calm, yet eloquent,

The smiles that win, the tints that glow,

But tell of days that goodness spent,

A mind at peace with all below,

A heart who's love is innocent!

Thanks Again

Dear Friends,

Genuine and sincere advise from an older person is always desired at times of abrupt change. Events as losing a job, a home, death of a friend or family member are a few of the various examples where help is requested in order to gain peace of mind. However, one needs to be aware from whom the advice is given. There are many persons who are sincere in their own perspectives and beliefs but the advice given does not have substance nor credibility after review. This reality is occurring today as our lawmakers in the US Senate have decided to approve a $780 Billion 'Stimulus Bill' which will eventually bankrupt America. Our children and our children's children will no longer be able to live a life worthy of the American Dream. The likelihood of becoming financially independent is no longer a viable option, as government intervention in all aspects of one's life has now become an eventuality for many years to come.

The death of capitalism or the free market system is now seen as a certainty by many economists. A new hybrid brand of American socialism is on the horizon. This new economic order will nationalize the banking industry and will allow the Federal Government to be involved in all aspects of financial decision making. Additional regulations, guidelines and agreements will now be the directive force in which government will have an inordinate amount of power to control the lives of Americans by its extraordinary intervention. The America most of us have been accustomed to and have taken for granted is no longer within our grasp and is now becoming a bittersweet memory. The metamorphosis of what we knew of American culture, its morals, its values, its traditions, is no longer respected and is dying a slow and painful death. Money has become a source of enlightenment and the apparent epiphany of glamor of those in power. In government, on Wall Street and in corporate offices throughout America the drug of spending such reserves is a ritual to be recognized. Their examples has permeated the desires of those living on Main Street to the detriment of our nation.

Stimulus

Ever since the $700 Billion approved by Congress and signed by President Bush last year, Americans were given the assurance at that time the monies allocated for the 'Stimulus Bill' was needed to end the eventual destruction of the American economy. As well, we were led to believe the funds would be used in a methodical and intelligent manner, where results to cure the incessant financial problems was its ultimate goal. The Bush administration spent $350 Billion or 50% of the funds allocated by Congress. As of today, $350 Billion still remains and these funds are now under the control of the Obama administration. With an additional $780 Billion destined for President Obama's signature, Americans have borrowed over $1,480 Trillion in the past 4 months!

Common sense in the halls of Congress and in The White House is no longer flourishing as our Founding Fathers would have hoped. The main problem we have today, involves the integrity and character of those individuals we've elected to Congress. Many of these persons are beholden to special interests, where the chronic pursuit of campaign funds for reelection and the inability to make courageous and altruistic decisions for the good of the country is their understanding of the role of a public servant. All in all, there are times in which there's not a dimes worth of difference between Democrats or Republicans. When a simple observation like this occurs, it's time for reflection. Wisdom is afforded to those outside of the maelstrom of activity. The observations bestowed on the few individuals capable of discernment, is a gift one obtains when the bonds of honesty and truth are articulated in those that harbor such virtues. In this vain, the US Government has failed the American people once again.

The 'Stimulus Bill' and my objection to it, is due to the extravagant amount of 'pork barrel' spending where the majority of the legislation are for items which do not provide the jobs needed in order to boost the economy. The Congressional Budget Office and other economists believe this to be a 'spending' bill which will do more harm to the US economy by creating and institutionalizing additional debt. This debt will be a burden for future generations and the likelihood of rampant inflation will be a direct result from its passage. Tax cuts for business and for all Americans is needed to help restore an economic balance.

Mortgage Rates 

We have noticed activity in bond yields during the past few weeks. Interest rates are starting to rise again. The inflationary 'Stimulus Bill' is being noticed by many in the financial community. Spending trillions to reinvigorate the US economy is a trial and error proposition. Many Americans fully appreciate the US Congress must do something to end the crisis. The right mixture of tax cuts and job creation is required to make the 'Stimulus Bill' a success. Many Americans are on the sidelines and are taking a wait & see approach. Please check our website for our current mortgage rates.  

Money Management

We are all to blame for the financial meltdown we are now witnessing. We are a credit society. We owe more money than we make. We also borrow to obtain goods we really do not need. We spend beyond our means in order to obtain material goods we want NOW. Patience is no longer considered a virtue in financial planning. We do not save as previous generations once did. The excesses of credit card debt and examples of demanding material goods without sacrifice or obtaining the savings for its purchase, has created a dependency for credit at all costs. The pendulum is now swinging in a direction where Americans are now painfully aware that our current lifestyles will now resemble those of our grandparents and great grandparents during the Great Depression. The value of the dollar is now appreciated more than it was, just a few months ago. Most of us know damage has been done to our financial futures. The focus is now on our lawmakers, as they need to understand the basic and simple concepts just mentioned and to pass legislation which alleviates the distrust many Americans might have for the newest 'Stimulus Bill'.

Thanks Again