Here is a tale of woe.   The story is true but the names and the city will remain unnamed.

Three years ago, a couple, we will call them, Mr and Mrs. Jones, bought a house, at a modest price, and financed it with 20% down payment.  Both Mr. and Mrs. Jones had jobs and they had no trouble paying the $1100 a month mortgage payment.

In March of 2009, Mr. Jones was laid off.  Mrs. Jones was furloughed from her job as a pilot.  They were expecting their first child.

Mr. Jones called Wells Fargo in April of 2009 to apply for a loan modification that had been written about in about every newspaper in the country.  Banks had received bail out money and the government had instructed them to modify loans to avoid foreclosures.  The people were waiting.

Mr. and Mrs. Jones applied for and received unemployment benefits.  All their information was given to Wells Fargo Bank.  They were told that the bank would be in touch.  After three months passed with no word from the bank, Mr. Jones called to inquire.  He was told that they did not qualify for the first program but that they should submit more information and the bank would see what other program would apply.  They were never told what each program was.  This happened again three months later.

Now, we are nine months down the line.  Mr. Jones called the bank and was told they wanted all the information again since it had become out of date and that they had no idea when they would be hearing from them.

While Mr. and Mrs. Jones are making the payments and are never late, the bank does nothing.  If they stop making the payments the bank will change the interest rate for five months and if they make these payments on time, the bank will consider remodification.  If they don’t modify the loan on a permanent basis, the Jones’ will owe the bank the difference between the original payment and the reduced payment.

THIS DOES NOT HELP PEOPLE!   THIS IS NOT AVOIDING FORECLOSURE!  The  banks must be compelled to comply with the wishes of the U.S. government.   Congress must enforce the conditions under which the banks received bail out money.  The road to hell was paved with good intentions.

If she rents, everything in the apartment or house cannot be changed without permission of the owner.  If she comes to love the place in time, there is always a chance the owner may decide to raise the rent or to move back into the house himself.  He may also want to sell it.  In time, it may need refurbishing and he may not want to spend the money.

After a while, all markets change.  What starts out as a buyer’s market, may sooner or later become a seller’s market and the decision to finally buy will be met with higher prices.

Over time, real estate is a good investment.  If it has some downturns, if you hold on to it long enough, its’ value returns and then some.

Pride of ownership, having it represent your own personality, making changes and improvements makes your life more enjoyable.  The stability of staying put for awhile and setting down roots creates great communities and gives families a sense of belonging, of  having a share in the wellbeing of the town or city.

The desire to own a piece of real estate is a natural human feeling and home ownership is here to stay.

Today, there are some terrific buys in every neighborhood.  Homes are more affordable than they have been in several years and interest rates are low.   It is a good time to buy.

I would love to hear your opinions.  Please contact me.

Energy Efficient

Homeowners are finding that more and more manufacturers are producing energy saving appliances.  Water efficient shower heads cost from $75 to $100, washing machines can cost $1299 but promise great savings on water bills over time. Many fabulous, new energy-efficient products were shown at the International Builders Show last month.  It is the manufacturers hope that consumers who are counting their pennies will buy these in an economic downturn.

Refrigerators which have been the greatest user of energy are now being designed to use energy comparable for a 60 watt bulb.  The initial investment will be greater.  Some of these refrigerators can cost as much as $2099.

The cost savings don’t usually amount to much in the short term.  The real savings will be to those homeowners who replace all appliances and faucets with energy saving new products.  It looks like one purchase can’t do it all.

This is the beginning.  Eventually more homes will have more energy saving appliances and new homes will be built with these energy savers because the buying public will demand it.