10 Reasons To Buy a Home NOW!

1. You can get a good deal these days with real estate market down
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted etc.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich quick. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes.

The Wealth Creation Team
Empowering People To Buy 7 Sell Correctly!

How Important is a Home Inspection

We cannot emphasize enough the value and necessity of an extensive home inspection. Many home purchasers, either in the desire to save the $300 to $500 that a good inspection costs, or due to simple ignorance, have spent enormous sums of money repairing items that any good home inspector would have pointed out. Any offer to purchase you make should be contingent upon (subject to) a whole house inspection with a satisfactory report. Do not let anyone dissuade you from having the property thoroughly inspected! Not only will you sleep much sounder after you have moved into the house, a professional inspection can give you an escape hatch from a contract on a defective property. If the contract is written contingent on an acceptable inspection, any defects in the home must be either repaired or monetarily compensated for. If you are not satisfied, you have the option to cancel the contract.

Home Inspections are designed to disclose defects in the property that could materially affect its safety, livability, investment or resale value. They are not designed to disclose cosmetic deficiencies (for example, an interior wall that needs paint touch up). You will need to determine on your own those type of items that will need attention.

A True Story:

The house was built in 2005 and appeared "solid".

Until the Home inspector turned on the water and everything (except the bathroom sinks) started leaking like a sieve. Including toilets. Including a hose bib. Including pipes in walls. Including the roof (well turning the water on didn't cause that one!) Including the kitchen sink.

The moral of the story for any Real Estate Buyer: GET A HOME INSPECTION!

Real Estate Market in Los Angeles

"So How's The Real Estate Market in Los Angeles These Days?"
"$400k and below market is on fire right now. Anything in that range that shows well and is priced right moves quickly. A lot of FHA buyers using FHA loan and 3.5% down payment only. Million plus range is a little slower. But interest rates are unbelievably low, which is bringing the buyers out there"

There has never been a better time to purchase real estate. The proper term would be; Invest in Real Estate. Low Interest Rate and Home Values Down. Can't beat that!

The End of The Mortgage Broker

How can I be saying that this is the end of the Mortgage Broker? It's called the Financial Reform, and it is completely changing the mortgage landscape.
The financial reform has introduced a new rule that takes place in April 2011, and this rule takes away the ability for any lender or Mortgage Broker from "incentivizing" or charging more for a particular program or rate. In other words, they are eliminating the YSP and forcing everyone to make the same amount of money or percentage based on the loan amount only.

Not only that, FHA now requires the Lenders be responsible for the actions of the Mortgage Broker. This way the Mortgage Broker. can't originate 50 fraudulent loans and then file for Bankruptcy leaving no one responsible. Instead the Lender (with large financial net worth and liquid money) is held responsible for the loan that the Mortgage Broker originated. So in turn, Lenders now highly restrict and limit the Mortgage Brokers while requiring then to have large sums of net worth and a majority of that liquid, the same way the Lenders are required by FHA. This is not possible for most, or they are simply being pushed out of the business. HENCE, THE END OF THE MORTGAGE BROKER BUSINESS AND MORTGAGE BROKER INDIVIDUAL IS IN SIGHT.

New regulations will soon crack down on shady debt settlement companies.

Starting Sept. 27, new Federal Trade Commission rules will require debt settlement companies to disclose:

• How long the process is likely to take.
• How much the companies charge to settle debts.
• Any negative consequences of debt settlement, including the facts that your credit scores will be trashed, you may get sued and you're likely to get a tax bill for any debt that is forgiven.

Starting Oct. 27, debt settlement companies will be banned from collecting upfront fees.

The new rules:

According to the FTC, after Oct. 27 debt settlement companies can't collect fees until:

• There is a written settlement agreement, debt management plan or other agreement between the consumer and the creditor, and the consumer has agreed to it.
• The debt relief service successfully renegotiates, settles, reduces or otherwise changes the terms of at least one of the consumer's debts.
• The consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.

 Another important change has to do with where clients put their savings. Typically, debt settlement companies tell you to stop paying your creditors and instead put aside your payments to accumulate a lump sum that can be used for settlement offers.

It's always been a bad idea to let a debt settlement company have or control those savings, but now the FTC has spelled out that the money needs to be in an insured bank account controlled by the client, not the debt settlement company.

I am a firm believer that there is absolutely no need to hire someone to help you deal with your creditors. As an adult you should be responsible and mature enough to deal with your situation, which you have somewhat embraced by your actions and decisions. It is as simple as calling your creditors and explaining to them your financial situation. No company, or individual can accomplish miracle in regards to negotiating with your creditors. I suggest you read a couple of books: "How to get out of debt, stay out of debt and live prosperously" by Jerrold Mundis and "Debt Cures" by Kevin Trudeau.


After reading those 2 books you will gain the knowledge that will help you negotiate successfully with your creditors and find a solution to your financial distress.

Mortgage Rates to Once Again Set New Record Lows

30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.7 point for the week ending September 2, 2010, down from last week when it averaged 4.36 percent. Last year at this time, the 30-year FRM averaged 5.08 percent.

15-year FRM this week averaged a record low of 3.83 percent with an average 0.6 point, down from last week when it averaged 3.86 percent. A year ago at this time, the 15-year FRM averaged 4.54 percent.