Pacific Mortgage Investment Blog

For the full story, click on this LA Times link: http://www.latimes.com/classified/realestate/news/la-fi-harney16-2009aug16,0,2888337.story

Here are two questions getting attention in Washington: When homeowners lose their houses to foreclosure, should they be able to stay in the property, leasing it back at fair market rent from the lender?
Should they also get an option to purchase the house from the bank at the end of the lease term, assuming they have the income to afford it?
Before leaving for their August break, Democrats and Republicans in the House took a rare, unanimous stand on both questions by passing the Neighborhood Preservation Act by voice vote. The bill was co-sponsored by Reps. Gary G. Miller (R-Diamond Bar) and Joe Donnelly (D-Ind.).
The bill would remove legal impediments blocking federally regulated banks from entering into long-term leases -- up to five years -- with the former owners of foreclosed houses. It would also allow banks to negotiate option-to-purchase agreements permitting former owners to buy back their houses.

Add your comment if you: 

Have done a loan with us or we assisted you in buying a home or we just helped you with information or even if you just have heard of us or just visited our website.

All comments are welcome.

Thank you

Mario Salcedo

Real Estate is an industry known for being cyclical, there are the boom-cycles which are followed by the bust-cycles.
Let us visit our last 50 years historical cycles: 

• 1958 to 1965 boom, followed by 1965 to 1971 bust
• 1972 to 1980 boom, followed by 1980 to 1986 bust
• 1986 to 1990 boom, followed by 1990 to 1997 bust and last
• 1997 to 2005 boom, followed by 2005 to present bust.

So, if we can use history as a guide, the first thing I recommend is "do not panic", educate yourself about all the options available and don't jump at the advise 1)  let your home go to foreclosure because you owe more than the current value is or 2)  people offering to help you sell your home on a short sale, though that may sound like the reasonable thing to do at the time, that may not necessarily be the best option for you.
I posted copies of articles from the Forbes Magazine and LA Times on these topics.

The truth is there are two types of homeowners: the "first" one is the one that is educated about the loans they are getting and then there is the "second" that may be clueless about what they are getting, they just know the payment is affordable.   If you know anyone in the last group, please help them by having them call someone who cares and knows about Real Estate and Loans.
This group will more than likely follow both or one of the 2 options listed above.

The first group on the other hand will contact those they know will provide sound advise and solutions that are not going to be regretable, (remember this is just another cycle, and YES it is rougher than previous, but a cycle nevertheless).  As you all know, I am always available to answer your questions/concerns and if I don't have a solution for your issue I am happy to refer you to the most qualified individual or company to clarify it for you.

The "other problem" is that even though most brokers and lenders are honest and ethical, there are those that are not, and are there to take advantage of any opportunity that yields them quick cash and the uninformed are really the perfect targets, this is called "predatory lending".

So staying well informed and cross referencing any information you get from one source is the best way to limit predators.

For the full story, click on this LA Times link:   http://www.latimes.com/classified/realestate/news/la-fi-bofa10-2008jul10,0,450812.story

Bank of America Chief Executive Ken Lewis defended his takeover of Countrywide Financial Corp., saying Wednesday that the Calabasas lender "kind of went into a shell and didn't say much about what they were doing right" when the mortgage business hit the skids last year.

Often cast as having epitomized the lax lending standards that buried millions of Americans in unaffordable loans, Countrywide, the nation's largest mortgage lender, was on the ropes when Bank of America agreed to buy it six months ago.

But in an interview with Los Angeles Times reporters and editors, Lewis said Countrywide had been painted with too broad a brush, and he promised to do a better job of defending it than its co-founder and chief executive, Angelo R. Mozilo, had done.

"There's always another side to any story, and we're going to tell it," Lewis said, praising Countrywide's efforts to avert foreclosures, which he credited for helping almost 100,000 borrowers remain in their homes this year.

"We don't think in every instance that Countrywide was the bad guy," Lewis said.