Oppenheim Law tells all at 6 pm tonight with perspective on the state of Florida Real Estate via a free Webcast or be part of a live audience in Boca Raton.
Homeownership will no longer define the AmericanDream. That’s because 30-year, fixed-mortgageloans that we’ve known since the 1950s may become a luxury if the federal government tightens constraints on FannieMaeandFreddieMac—the two lenders that historically backed home loans for the masses (even with far less than perfect credit scores). Indeed, a private mortgage finance market could emerge with entirely new rules—rules that make it harder and more expensive to get a loan.
Next, consider convicted Ponzischeme mastermind Bernie Madoff’s comments from his prison cell. Madoff told New York magazine that GoldmanSachs, MerrillLynchandMorganStanleySmithBarney knew all along that he was working the system—and did nothing. Madoff suggested that the entire government is a Ponzi scheme. What if Madoff is right? It’s a disturbing thought…
That leads us to the question, “Whyisn’tWallStreetinJail?” Where’s the accountability? Clearly, greedy banks did their dirty deeds and clearly American taxpayers are footing the bill. Wealth has been destroyed. Lives ruined. Yet Wall Street—and the prominent firms that make up the financial services industry—seem to be living above the law.
What’s an American homeowner—or foreclosure victim—to do?
Join OppenheimLaw tonight, March 9 at 6 p.m. RoyOppenheim is holding a realestateworkshop where he discusses how the aftermath of Wall Street’s greed is still affecting homeowners across the country and what you can do to pull yourself out of the hole the banks created. Oppenheim will also share how rising oil prices, continued unemployment and the possibility of an American double-dip recession is impacting the South Florida real estate market, as well as the pros and cons of how changes to mortgage options could impact SouthFloridaforeclosures and shortsales. (more…)
The American Dream as we know it is being redefined for Florida real estate and the nation. Elton John’s famous song Goodbye Yellow Brick Road reminds us that homeownership will no longer define the American Dream and the Yellow Brick Road really leads to no where (just like in Oz).
So the tune Goodbye Yellow Brick Road is sounding the same as Goodbye American Dream as we say see you later to 30-Year Mortgages. The fact is, without housing finance giants Fannie Mae and Freddie Mac, the 30-year mortgage might fade away, leaving many potential homeowners with little to no financing options.
The 30-year fixed-rate mortgage loan has been a steady favorite of American borrowers since the 1950s and is now on its way to become a luxury product.
What would real estate be like without Fannie Mae and Freddie Mac?
According to The New York Times, life without Fannie and Freddie is the rare goal shared by the Obama administration and House Republicans after the two giants misused the government’s support to enrich shareholders and executives by backing millions of shoddy loans.
Taxpayers have spent more than $135 billion righting those wrongs.
However grave the transgressions, there would be consequences for Americans if Fannie and Freddie are shut down. Interest rates would rise for most borrowers, and lenders could start charging fees for locking in those rates weeks or months before taking out a loan.
Still, other politicians favor a purely private mortgage finance market. (more…)
“Not a single financial executive has gone to jail”…that is how Producer Charles Ferguson rocked the Oscars by starting his acceptance speech for winning best feature documentary for “Inside Job,” a film about the 2008 financial system meltdown. How appropriate.
Meanwhile, Florida real estate is no red carpet winner when it comes to the housing market. Oppenheim Law announces its real estate webinar streaming live Wednesday March 9th at 6 pm, designed to help Florida homeowners use today’s economic conditions to their advantage and fashion their own bailouts.
In this timely workshop, Oppenheim shares fresh insights, including:
How the rising price of oil will affect the American job market, and in turn affect the housing market.
What these trends mean for Florida foreclosure defense and how homeowners can use these events to their advantage to engineer and structure a short sale.
The impact that a sluggish start to the national “selling season” will have on a local level.
Why home prices will continue to drop in the months ahead.
Florida real estate is not immune to the financial system melt down or the recent world events, according to Florida Foreclosure Defense Attorney and Legal Blogger Roy Oppenheim.
As revolutionary tremors continue to spread through the Middle East and actual tremors rocked New Zealand with a 6.3 magnitude earthquake, Oppenheim Law offers insight on how these international events could impact Florida’s real estate market as well as sharing the latest legal trends in foreclosure defense and short sales strategies. (more…)
The Florida real estate market just can’t catch a break! With Obama’s new federal housing finance plan unveiled, including its proposal that government phase out the support of Fannie Mae and Freddie Mac, it’s unclear what the impact of such a move would be on the fragile housing and mortgage market. But one thing is for sure: Financing a home will continue to get more expensive.
While risk is high, so are the stakes… and the fees! Higher down payments, a lower cap on the guaranteed mortgage amount, and higher risk fees on associated with Freddie and Fannie.
What does this mean to you? If you are:
Cash buyer:
Home prices may have hit bottom, so now is a time to leverage the power of a cash offer in negotiating with desperate sellers who just “want out”, taking advantage of the banks’ desire to get short sales done NOW rather than later.
Financing:
Rates are also likely to rise as the economy improves and the rock-bottom interest rates that have been protected by the Federal Reserve Board edge up. Like we said in our post this week, millennials have a better chance to get a return on investment over time, while baby boomers and Gen X might not ever recover.
Renting:
This just may be the sweet spot with the best value for some.
Selling
It’s still a Buyer’s market, but with banks ready to deal on short-sales now is the time to get on with your life. Further, in some cases it may be possible to figure out a way to do a short sale and still take advantage of the attractive prices that the market has to offer. (more…)
While the dramatic decrease in foreclosures is temporary, the equally sharp uptick of short sales is not. Why?
As reported in The Wall Street Journal this week, buyers are snapping up short sales in all-cash deals, breathing life into the crippled Florida real estate market. In our monthly real estate workshop last night, foreclosure defenseand real estate attorney Roy Oppenheim pointed out that over half of short sale buyers today pay in cash, versus 13 percent in 2006.
Didn’t make last night’s event? The replay will be available for the next ten days on Oppenheim Law TV.
In the timely workshop, Oppenheim discusses:
How global events and macro economic conditions such as unemployment and the price of gas impact the real estate outlook
The ‘black swans’ just keep on coming, as underwater homeowners brace themselves for a new set of rules in 2011. Amid international struggle, national weather crises and local real estate unrest, new data shows that real estate prices continue to drop while short sale rates are skyrocketing.
95 NW 11th St., Boca Raton, FL 33432
Cost: Free with advanced registration
RSVP: To register, email jackie@oplaw.net or call 954.384.6114
We’ll cover how the protests in Egypt, Florida’s new governor’s stimulus ideas, Obama’s agenda, bankrupt states, and even massive snowstorms are poised to make a direct impact on Florida foreclosures and short sales.
This was a historical week. Besides marking the 25th anniversary of the explosion of the Space Shuttle Challenger – an event that itself marked the end of an era; this week’s headlines included Obama’s new rules/new economy State of the Union; Friday marked the first time in history that part of the Internet went dead as Egypt “unplugged itself” in a move to settle political unrest and finally…the Financial Crisis Inquiry Commission delivered the results of its investigation into the causes of the financial and economic crisis.
Technology, politics and the economy seem to be unfolding into one.
First let’s point out, there is a lot of BLAME going on, starting with the 500-page FCIC document, or should I say docu-drama. The in-depth analysis covers how we got to where we are today as it relates to the financial crisis, foreclosure crisis and housing crisis.
As taken from the official FCIC press release:
The Commission concluded that the crisis was avoidable and was caused by:
Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages;
Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk;
An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis;
Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw;
And systemic breaches in accountability and ethics at all levels.
But let’s be clear on BLAME; the last person that should be blamed in this mess is the homeowner. (more…)
