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Every Cloud Has A Silver Lining

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Here's the current real estate weather report. Foreclosures increased by 75% in 2007 with more than 2.2. million filings nationwide. The largest clouds hover over the states of Nevada, Florida, Michigan, California and Colorado respectively, with California alone having a record number of 481,392 foreclosure filings. 2008 is expected to follow suit and will likely be more ominous than 2007.



As foreclosures increase, more homeowners are feeling desperate and discouraged. Authorities in economic stressed cities like Detroit, Michigan see a correlation between pending foreclosures and homes burning. The conclusion is arson is on the increase due to motivation by stressed out homeowners to fix their situation by torching the premises and hopefully cashing in on insurance proceeds and relieving themselves of going through the foreclosure process.

The mortgage meltdown has caused some neighborhoods across the nation to be plagued with blight because homeowners, unable to make mortgage payments because of bad or ill advised adjustable rate loans that have caused their payments to balloon beyond affordability, have abandoned properties leaving them vacant and becoming havens for insect infestation and stray animal hangouts.

Some homeowners, angry over the whole muddy mortgage situation, have taken it even further by deliberately causing damage to the property before they abandon it by leaving water running and creating mold and mildew problems or just physically destroying portions of the home.

Currently, the FBI is investigating 14 companies related to the mortgage crisis on claims of mortgage fraud, SEC inside trading and other alleged illegalities associated with the sub prime real estate market.

The Mayor of Baltimore, Maryland sued Wells Fargo Bank on claims that the bank is guilty of "reverse red lining" actions - making deliberate high risk sub prime loans in minority neighborhoods under circumstances that the bank knew or had reason to know would fail. This is the opposite argument made against banks years ago when they were found guilty of drawing a red line around areas that they deliberately would not make loans in - predominately ethnic minority neighborhoods, hence the term redlining. The Mayor claims minorities hold more than 60% of the adjustable rate loans made by Wells Fargo and now the majority of those loans are failing and the foreclosure grim reaper is taking its toll.

The above facts provide more than enough evidence to support the premise that the real estate industry is caught up in a stormy situation. The dark clouds of sub prime failures and the gale wind force of foreclosures make the future look bleak and dim.....But, there is a silver lining amidst all the dark clouds.

Where's the silver lining? The evidence is beginning to show itself already. There is and definitely will be good times ahead for the real estate market sooner rather than later. It depends on the lenses you're looking through.

Interest rates on federal funds dropped to 3% on January 30, 2008. Mortgage rates are reacting and starting to fall too. This will prompt more refinancing and help many homeowners that can still refinance troublesome adjustable loans into 30-40 year affordable fixed rate loans thus avoiding the likelihood of future foreclosure or other financial problems.

Congress is contemplating and most assuredly will make legislation or regulatory changes in the maximum amount of the loans that can be acquired with FHA insured backing. The current loan limit of $417,000 is unrealistic in the current market. The democrats are seeking loan limits of more than $700,000. The Republicans suggest limits in the $600,000 range. The obvious observation here is that both parties agree the $417,000 limit must be raised. Once that happens home buyers will be able to access more loan funds and buy houses that are not available right now.

Home prices are down and new home sales are at a record low. Sellers are very motivated and willing to assist buyers with financing. This all adds up to A BUYER'S MARKET. That's the silver lining.

Home buyers, especially first time home buyers will be a huge factor in weathering the storm of the mortgage mess. The winds of change are upon us. History will repeat itself. Out of the dumps of the real estate market the proverbial Phoenix will rise.
Every Cloud Has A Silver Lining
It's been over fifteen years since I learned a profound lesson while in Guanajuato, Mexico with a college semester abroad program. One day during a discussion with my host family and some of their friends about U.S./Mexico relations, I was asked about the name of my country. "You are from the United States of what?" In response I said, "America," with a bemused expression. Big mistake. For the next hour I looked like a deer in headlights. Headlights from a Mack truck.

Any country in North, South, or Central America is considered "America" technically. Mexicans are Americans and so are Canadians, not to mention Brazilians. Never thought about it that way? I hadn't either. "We are the United States of Mexico. We have an identity that is distinct. You are from the United States of Nothing/Nada!"

I have frequently reflected on this idea of being from the United States of Nothing. There was a special National Geographic issue on Mexico in 1996 and in one of the sections a Mexican woman said something akin to, "I don't understand it. Our country lacks nothing. Why are we so poor?" It is a compelling question and evidently the nothing they lack is in the U.S. About 400,000 Mexicans emigrate to the United States every year. They leave behind precious family and communities for the opportunity to earn a decent living and I know they are constantly wondering, "Why does it have to be this way?"

I have since had conversations with U.S.-born citizens who are very disillusioned with life here and they spend as much time as possible in Mexico. Hundreds of thousands retire there. One woman recently told me that she feels more at home and at ease in Mexico than anywhere else. She loves the sense of community, the fact that people talk to each other and walk everywhere, and the vibrancy of life. She returns home with her illnesses abated and her spirits high, but after a month or so in suburbia she is faced with a returning ennui and suffocating anonymity. Why do over 15 million U.S. Americans visit Mexico every year? To relax, unwind, forget, give up, rebirth, tan, drink, dance, revive, and do nothing. We work more than ever and it shows no signs of slowing down, despite "technological advances." Stress is at the root of more problems and illnesses than ever before and a recent study showed that the longer Mexican immigrants are in the U.S. the more their health problems increase. This could be because only half of their heart is here while the other half is still in Mexico (like many U.S. Americans who are working in a cubicle while their mind has them on a beach in Acapulco). It's ironic that they have to become more like us, whether they stay in Mexico or come here, in order to be more economically competitive and we should be more like them to address the chronic health and societal problems caused by compulsive competition.

What is to be made of the magnetic forces between the United States of Nothing and Mexico? Could it be that our citizenry is drawn to the distinct cultures, community identities, and colors in Mexico, while Mexicans come here mainly for the particular form of esoteric nothing known as money? Money is after all a symbolic exchange with no inherent value. In an economy based mainly on the exchange of symbols (that are now even less concrete because we hardly even use paper money anymore), is it any wonder that we often feel so anonymous and exchangeable ourselves? In turn, we often discuss Mexican immigrants as if they are interchangeable hired help automatons whose greatest attribute is that they will do work most U.S. Americans will not touch. In fact, Mexican immigrants do that work because they have dreams, aspirations, ideas, and values for themselves and their families that if channeled properly can contribute greatly to the strength of the U.S. economy and society. Mexican immigrants are not unwitting pawns in an international chess game. Sustainable solutions will not arise unless we engage in organizational, community, state and national conversations that lead to a shared vision.

With so many interconnected issues it seems to make sense that rather than marginalizing the Mexican immigrants who are here we should include them as problem solvers. Mexico is developing macroeconomic stability and will hopefully continue to increase the educational and economic opportunities for citizens across their country. However, the changes will take time and our interdependence with Mexico will not soon disappear, if it ever will. And it is a viable question to ask if we should pay more attention to what each country offers that people truly value...what reminds us of our worth as human beings, our ability to contribute, and our sense of belonging to something bigger than ourselves. It's not an all or nothing game and the United States of America has the potential to overcome the audacity of our country's name by changing the rules of engagement used toward other Americans from the Western hemisphere.

Copyright 2006 Relational Sensibilities
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About Author
Both Roy Landers & Marissa Perez are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Roy Landers has sinced written about articles on various topics from Finances, Home Buyers Guide and Finances. Roy Landers, attorney and successful real estate broker/investor teaches how to stay informed on what's working and making money in the real estate market with FREE content from The Real Estate Playbook. The place where savvy home buyers, sellers and inve. Roy Landers's top article generates over 9900 views. to your Favourites.

Marissa Perez has sinced written about articles on various topics from Cars, Apply for Grants and Finances. Marissa Nordstrè'm Pè(c)rez has an MA in Intercultural Communication. Her consulting firm is focused on businesses that employ and organizations that serve large numbers of Mexican immigrants to improve effectiveness, productivity, and retention. She is. Marissa Perez's top article generates over 9900 views. to your Favourites.
Beautiful Home For Sale
Just bear in mind that the people doing the projects are not like you, theyre very experienced. If youre not an experience then I doubt you will find the job so easy!
 
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