Lynne Pope is your Realtor in Hermosa Beach, Manhattan Beach and Redondo Beach

My yoga teacher says its Alan Greenspan’s  fault. During the Clinton era he should have raised the interest rate as the economy grew. That would have stopped the bubble. He wanted things to look good and get re-elected.  Bush kept Greenspan also.

We all know economy is a combination of things. We can blame the Banks, the greed wherever it lives in politics, in the workplace, wherever.  What if it is true? What if it is not true?  Every person is trying to solve this puzzle.

I think the inventive talents in our world will lead us out of this one. What has history said about it? Build a better tomorrow. Transportation was the ticket to employment and growth. Energy ideas for transportation is the ticket yet to be played for real. Just watch the movie NETWORK. As soon as the big guys own the alternative resources we will get to have them.

We need a Hero. Actually we need the hero inside each of us to step out and lead with grace. We start with a better word than blame, and move on in this changing world.

Todays message to California Realtors complete m

Feb. 18, 2009

Dear C.A.R. Member,

Earlier today, President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.

The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits.  I¢â‚¬â„¢ve outlined the plan in greater detail below.

The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance.  Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.

The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are ¢â‚¬Å“underwater¢â‚¬Â on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification.  Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.

The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative¢â‚¬â„¢s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.

The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.

The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.

The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac.  The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace.  Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac¢â‚¬â„¢s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.

While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.

We¢â‚¬â„¢ll keep you updated on the Homeowner Affordability and Stability Plan as more details and information become available to us.

Sincerely,

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®
 
 

Wonder where all this mess really happened? Deregulation of the Banks.

Wall street and the Banks. Oversimplified but it is a fact. When the loan was sold nobody cared about it after that. It was repackaged and sold and sold and sold and all that paper is worthless now. Everyone I know wonders about the great Christmas movie of all time-”Its A wonderful Life.” (deregulation of the Power plants in California had the same disastrous effects of greed- its cosing more to get it back on track.)

We have to make our way though this and it starts by caring enough to regulate again.

 Another stimulus package? Still wondering what happened to the first one? The same urgency is here to do something and do it quickly. If the forclosed homes being held up in government mandates get unleashed we will see a financial New Orleans. The Levees holding back the rising waters will create more damage than fixing it now will ever cost.

Everyone knows this is a serious threat to a great depression. The news is fractured in another divide. Television news is an appalling “People” magazine or local car chases through the streets. The middle of America is pushing forward in only one way I know-blogging, commenting, speaking up till we can speak out!

RISmedia a real estate information leader in communication wrote today that mid February they want to vote on this package.

This is the communication:

In an e-mail sent by the Democratic National Committee, the president also urged voters to host or attend an ¢â‚¬Å“Economic Recovery House Meeting¢â‚¬Â this coming weekend, where a videotaped message from party chairman and Virginia Gov. Tim Kaine would be played to answer questions about the stimulus spending.

¢â‚¬Å“I hope to sign the recovery plan into law in the next few weeks,¢â‚¬Â Obama said in the e-mail. ¢â‚¬Å“But I need your help to spread the word and build support.¢â‚¬Â

Republicans feel they are closer to the spirit of the plan than Democrats. There is a divide- Everyone has an opinion from economists to nonpartisan Budget leaders.

Public works Democrats:

To quicken spending, Sens. Patty Murray, D-Wash., and Dianne Feinstein, D-Calif., are expected to push to increase funds available for public works projects.

Real Estate Republicans:

Republicans are taking the lead on housing, proposing a one-to-two-year government guarantee for a 4% interest rate on 30-year loans for creditworthy borrowers. Members haven¢â‚¬â„¢t yet worked out a definition of ¢â‚¬Å“creditworthy,¢â‚¬Â but GOP officials suggest it would include virtually anyone with a current loan or seeking a new one who¢â‚¬â„¢d qualify under normal lending rules.

Important real advice:

The plans ¢â‚¬Å“won¢â‚¬â„¢t reverse the current economic downturn,¢â‚¬Â said economist Mark Zandi, who advised Republican John McCain during last year¢â‚¬â„¢s presidential campaign and recently testified on Capitol Hill. ¢â‚¬Å“It will be severe, regardless. But (the stimulus) will provide a very vital boost to the flagging economy if it¢â‚¬â„¢s passed quickly, in the next few weeks.¢â‚¬Â

Also being widely discussed among Republicans is a plan to give home buyers a tax credit of up to $15,000, or 10% of the cost of a home this year, whichever is lower.

The plain fact is right before our eyes. The last package was quickly moved into the banks and the very worst thing seems to have happened. Wall street and The Banks did not move the money out into the public. They paid themselves, unheard of amounts of money 35 Million

I was in the Hermosa Beach Animal Hospital yesterday. Hot spots, allergy, new flea resistant issues. It was just a simple visit to get some clarity for our dogs. I got more clarity than I dreamed. Katrina Dogs I know were adopted in LA. I was so glad people who could do something went into action. This is a defining moment for readers…get ready.

I met “CHANCE” of last chance. This beautiful black standard poodle was a rescue from Arizona. The new owner “Local” is one of those amazing people that don’t murmer and complain about the tragedy of our economy. She is actively finding the animals and getting them placed, rescued, helped in whatever way she can. She was close to tears as she told me the true story of the plight of animals due to FORCLOSURE. People leave their pets.

I can’t find more words to imagine the sorrow of a family losing their home. The wordless, pets left. What can we do? GRASSROOTS ACTION. Tell everyone you know SHOUT IT OUT for these animals. If you are in RIVERSIDE, TEMECULA, anywhere there is a forclosure get to that house and knock on the door, listen for sounds of a pet. The Banks have to many to go to the houses, The Bank Owned realtors have to many houses to go -like 200-400 properties. Tell this story. Get the news out there and be the voice for the pets. It is unthinkable. We can get into action. Call, write, get the word out there.

The search and previewing of the condo market in Redondo Beach took me several hours yesterday. Camino Real and Prospect are cross streets with a heart shaped section of properties Called Brookside Village. The Prospect side has numbers in the 600′s and the Camino Real side has 800-900′s. It was a lovely search through the complex with a central Pool and Tennis court and lots of walk paths. Some “inside” units – that is where you go into a central hall have a feeling of apartments. The outside units along the parameter were lots more fun to me and felt more like home. The street noise was muffled by the dual paned windows. I will add a photo to this blog later today.

One of the upper floors sold for a price below the other asking prices. Because…the people were contingent on buying another property they wanted. Good deals are there for buyers in Redondo Beach and anywhere else right now. Put yourself in a sellers shoes. They are competing with REO, Foreclosures, and anyone else for sale. The seller has to be competitive. The REO’s are usually not in such great shape either. The banks are trying to figure out what to do and recasting loans as my last article states.

Finally I found a 3 bedroom for a 2 bedroom price. I have to hurry its only been on 3 days. So I will call the agent tell them we are coming and they will let the sellers know there is some action…..Such busy weekends. The buyers are off of work. Mothers day will be a trip, and guess what else? My buyers looking time has to work around the SURF!

Surfing is the healing art for everyone that discovers it. My husband and sons learned to surf in Hermosa Beach. Our grandaughter did the ROXY surf training. It is reaching out to women in greater numbers and of all ages! Hooray. I did try surfing in Kauai last month. I need some more practice. I was laughing so hard. I also didn’t know you go from hand to feet..not knees…I was on my knees like a baby crawling…and laughing.