|
If you are an NFL fan, you are familiar with the quote in my headline. If you are not a football fan, the words "What the hell's going on out here?" were spoken by Vince Lombardi, coach of the Green Bay Packers over 50 years ago. He was frustrated and angry about his team's performance during a game. NFL films has run this clip countless times. Any coach, parent or business owner can relate to the emotion Lombardi was expressing, and the helpless feeling that exists - temporarily anyway - when things aren't going right. One has lost control.
Once in a while, we can take a look around our country and ask the same question that Lombardi was asking his team. In recent months, a few things have happened that relate to our housing market that have some people scratching their heads, and perhaps wondering "What the hell's going on out here"?
Let's take a look:
1.Home Equity Lending Returns in Force
Second mortgages are back in vogue. Remember
them? Bank of America reports that its home equity
business surged 75% last year compared with 2012.
DataQuick reports that here in Southern California,
equity lines increased 48%, with the median credit
line at $100,000. They indicate that a particular
homeowner who was denied one year ago was
approved this year for double the amount - by the
same loan officer.
Home prices have been rising nationwide. According
to Wells Fargo, the primary uses of the credit line are
home improvements and debt consolidation. A 3rd
reason? Buy real estate. Sound familiar? Shades of the
bubble days?
Well, in 2006, equity credit lines set a record, with
$430 billion approved that year, says the National
Mortgage News. $49 billion was approved in 2010,
$60 billion last year, and a healthy increase expected
this year. The "experts" say the standards are different
and lenders are more cautious. Borrowers are
monitored better.
Stay tuned.
2. Regulators Want Free Credit Scores
You probably have seen the TV commercial where
Discover Card touts their consumer friendly
service of providing a free FICO score on their
customers' monthly credit card statement. The
Consumer Financial Protection Bureau wants all major
credit card issuers to do the same.
Richard Cordray, Director, in his letter to the
companies said " Making consumers' credit scores
freely available on their monthly statement or
online makes it easier for them to spot problems
with their credit report... We need to get more
Americans to pay closer attention to their credit
standing, which would benefit lenders, consumers
and the national economy."
I'm not sure how I feel about this. One part of me
says that somehow, someway this would turn into
a privacy/identity theft issue. Another part of me
says this is great, because more Americans will find it
easier to get their financial act together.
I think it would help people contemplating a seller
carryback transaction. For whatever reason, there
are sellers who will not check their buyers' credit
score and history, thus losing out on an important
element of their buyers' overall credit worthiness.
With this new tool, a seller could simply ask his buyer
to provide his score from his credit card statement.
Now,with this important information, they can
agree to terms that would be more sound, fair and
reflective of the buyer's situation.
3. I Still Live with My Parents
Full disclosure - my daughter lived at home till she
got married at age 25.
Mandelman Matters is an interesting blog site that
writes about real estate. In a recent story,
he begins by saying his college graduate daughter
has moved back home; he then discusses the plight
of young adults in the housing market, and then
gives his overall analysis of the housing market. Go
to www.mandelman.mi-implode.com. Look for the
person wearing the "I still live with my parents"
t shirt.
" The language of truth is simple."...Euripides
(remember this quote when reading "any"
contract)
Taxes
Curious as to how your state stacks up to others
when comparing its tax burden in the United States?
Thanks to Kiplinger and my friend Bill Mencarow, you
can do just that. An online map will give you this
information. Try www.tinyurl.com/papersource-no-
tax. Click on your state.
"Experience teaches you to make good choices.
You get the experience by making bad choices.
You can't go wrong unless you make no choice at
all."... Holiday Mathis ,Creators Syndicate Inc.
"You have brains in your head. You have feet in
your shoes. You can steer yourself any direction
you choose." ... Dr. Seuss.
Facebook
Facebook founder Mark Zuckerberg, 29 and his
wife Priscilla Chan, 28 donated $992.2 million to
charity last year. They were the youngest and
most generous of the top 50 donors, according to
the Chronicle of Philanthropy. The median age was
72.5. The 50 donors combined to give away $7.7
billion.
While reading about this, my mind wandered to the
sounds of the politicians who carry the banner of the "haves v. have nots." They continue to argue that
the wealthy need to do more, that their share of
the tax burden needs to be more.
Maybe, maybe not. But, I do know that the wealthy start businesses. They create jobs. They give motivated employees opportunities for
growth. They mentor people, let them spread their
wings and start their own businesses. The wealthy
donate to hospitals or even build new ones. They
create charities. The wealthy probably do more
"real good" for our country than any government or
government program could even begin to dream
about.
"If you're interested in balancing work and
pleasure, stop trying to balance them. Instead
make your work more pleasurable."
Donald Trump
If you enjoyed this Newsletter, tell a friend.
If you know how I can make it better, tell me.
Thanks for reading.
Denny Stanz
CA Broker # 01915404
760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com
| 
