Downey, CA

When a homes value is less that the amount owed on a mortgage, and the home owner is late making

payments on the mortgage, the bank will begin a forclosure process. If the home owner wishes to save

his credit rating and avoid the forclosure, a real estate agent is hired to market the home for sale. Since

the homes market value is less than the amount due on the mortgage, the agent begins a short sale

process. Most often we need to stop the forclosure process so we price the home below market value to

attract attention which in turn leads to offers on the property. Once an offer is accepted by the home

owner the bank reviews the offer and either accepts the offer or sends a new approved price which is

higher. In the event the approved price is higher the agent relists the home at the new approved price

and sells the home at this price. Sometimes the approved price set by the bank is higher than the real

market value this sometimes causes the home to not sell and the bank ends up forclosing on the home.

This short sale process takes anywhere from 2-6 months. In other words short sales are very uncertain

and can waste a lot of your time. In my experience you are better off looking for a home that is a

regular sale, or a bank owned sale. Unless this home is absolutely the one you really love then I would

say you should spend the time in the short sale so you can aquire this home.

The Road to Recovery is upon us. Most people believe it or not, are still listening to the doomssayers, yet if you look at the underling events that are taking shape today, and analyze the momentum of activity on the market, you'll discover that multiple offers are being made on more and more property each day, even on November 18th 2008. Typically October, November and December are slow months.

Why you might ask? We all know Convential Lenders are not lending ask brisk as they were in years past, however, having said that, capital markets had stopped lending because of the MBS's, CDO's, and SPV's that contaminated the commercial paper markets. The climate at the Treasury Dept. clearly shows that banks are becoming healthier with bailout money. Fresh capital, not tarnished capital will be hitting the streets soon.

Why you ask? Bad Debt is being reconfiguered or restructuring to performing assets. How, LOAN MODIFICATION! Loan modification will soon shed many of the foreclosures that have been coming on the market due to FASB 157 that took place in Janury of this year, which required lending institutions to balance it's books on the market value of assets versus liabilities. The bottom line, Loan Modifications are turning Bad Assets into Performing Assets with the restructuring of loans, Banks can start borrowing on those good assets as Leverage. They generaly have a ratio of 12 to 1 against it's assets that they can lend out.

That's probably why Treasury Secretary Paulsen changed direction on buying bad debt and holding. It's better to feed the cat and have a healthy animal, than to keep feeding something that has already died, which will prolong the enevitable funeral. Let those Lenders pay the consequences is what is happening, a restructured debt can be eventually turn in to a refinance in the future when the economy is in a better position.

Now you might ask when do we start bottoming out? March 2009. Those who are buying now will reap the rewards, those sitting on the fense will be saying I should have bought when I had an opportunity to do so. I just made an offer on 2 units for $240,000 in San Diego California, if that's not the bottom, it's sure close to it. I anticipate a counter to $275,000 this is an REO, not a short Sale. Those short sales will soon drastically fade away as loan modifications drys any hopes of those would be speculators who are thinking of selling on a short sale and buying another shortsale.

Those buyers out there who want a to capitalize on the market now, can call me at 562-755-3856 to help them buy at todays prices and gain a future investment....

My name is Carlos R. Arvizu Sr. TheDon1950@aol.com

Prudential California Realty

562-755-3856

Economic Bailout for the Auto Industry

If GM, Ford, and Chrysler are to survive this economic recession, they need to make a serious decision as to the future of their companies, as well as their workers, and other supporting services that provide parts and other related accessories to the auto industry.

GM, Ford, and Chrysler also employ a lot of related industries. The Steel industry, Aluminum, sheet metals, plastics, rubber, electrical components, paint industry and glass manufactures, and a whole host of inter-related supporting companies that provide valuable jobs to Americans.

If these automakers are allowed go under, so do a lot of other hard working folks that are inter-related. That's one of the reasons why the economy is partially suffering in the real estate and mortgage market.

Supporting services that were dependant in one form or another on the real estate market, also suffered dramatically, as they were inter-dependant on real estate sales and mortgages that also provided jobs, such as mortgage companies, appraisers, contractors, building material suppliers, escrow, title, and insurance companies, city municipalities, home inspectors, to name a few, but also it affects your local barber, and restaurants, printing companies and a whole host of others, which most people don't understand the complexity of it all.

What these automakers and Congress need to do is concentrate on, what seems to be everyone's problem, not enough sales to support itself. So what do you do? You cut expenses. That's an enviable fact of life.

The trade unions have made it virtually difficult to keep these automakers in business. They must realize it may be necessary to make concessions or lose their entire workforce to foreign automakers who can afford to build outside the US and sell here in America.

Short term loans may pay the bills temporarily, but that can also be a prescription for disaster also. America needs real solutions to fix the problems. Stimulus solutions work if they can stimulate growth. Just giving you a loan to temporary get you over a minor hurdle is not the same as slumping sales, credit problem, recession and poor consumer confidence in the economy. It's referred as, borrowing from Peter to Pay Paul, eventually, bills will catch up, sooner or later. Unless you have a workable plan to solve the underlying problem, slumping sales, and consumer confidence, and a lack of credit, will continue to be a plague the industry and eventually will kill the already endangered economy.

Possible solutions to fix the cash flow problem are;

•1. Reduce the workforce by early buyout for older workers who voluntarily elect to retire, but instead of a golden parachute for cash, trade stock in the company through their 401K in lieu of a golden parachute. That ultimately would be more than rewarding, especially with low stock prices and growing future return, as the company grows. This would reward the retirees for their hard work and sacrifice of an early retirement.

•2 Union Concession may be necessary to allow replacement worker at a reduced wages to start over the next 5 years. Giving these companies breathing room to survive and grow.

•3 The Federal Government needs to provide a tax credit or deduct the interest for those buying an American Made vehicle. This would truly be an incentive to buy American made vehicle, which would help the American workforce, that would truly be a stimulus helping Americans.

4. Workers who can give management ideas that can lead to money saving ideas that lead to increase production or real cost savings for the company should be rewarded for their efforts. Management needs to have workable solutions for the good of their workers and their stock holders. (Employees are stockholders)

5. Consolidate plants that provide duplicated tasks.

6. Build a better automobile that prove good value for consumers.

If the company can't survive, no one survives. Something to seriously think about.

Carlos R. Arvizu Sr

theDon1950@aol.com

Baffled by all the political posturing? If I were running for public office, here is what I would do since having Mastered Real Estate and Economics 101;

1. Reduce the Capital Gains tax to 5%, what this will do is encourage those that are holding long term capital gains to sell.

First of all, what is considered a capital gain? Some people think this is only for the rich, think again. A sale of stock, mutual funds or bonds fall in that category, as well as other long term gains, such as a real estate investment, apartment building containing 1 to 4 units, is also considered a capital gain.

Most people don't realize it, your home could be a capital gain if you made more than the allowable profit, as an example; you bought a home for $85,000 and you sold it for 420,000 there would be a $335,000 profit, and depending on your own status, that could be a taxable event. Another example, lets say I owned a rental unit, I am tired or the headaches of managing it, I want to sell, there is a good chance I might be incline to sell, because I want retire after owning it for 15- 20 years, however, after looking at the consequences of the Capital Gains Tax, I would be very reluctant to do so, or I may opt to stick it out and let my heirs worry about it, or use a IRS 1031 exchange to defer the taxes by buying another property, hoping the management headaches go away.

Basically speaking, capital gains taxes reduces the governments ability to collect revenue. Capital gains taxes are currently at15% on the Federal side and 15% for California, plus depreciation that may be due. and are scheduled to rise in 2011.

However, should Congress lower the capital gains tax substantially this would encourage property owners to sell, who are inclined to sell. By lowering the capital gains taxes, this would have an enormous effect on the economy by raising revenue to the federal government, as well as the States, like California, who are facing budgetary problems.

Imagine increase revenues, by simply reducing their capital gains taxes, more revenues created by simply reducing taxes. Raising taxes can be counterproductive. More is less, and Less is more!

With the Capital gains tax being so high, most people are very reluctant to sell because of this.

Paying lower capital gains taxes encourages income property owners an opportunity to sell, cash in, retire and do what they want to do, pay less taxes and enjoy life, or invest in other opportunities, joint ventures that create jobs. This is something to really think about.

2. Eliminate the Taxes on individual savings accounts held by banks, savings and loans, up to $100,000 in tax free income with an inflation index to keep up with inflation. This would encourage more people to save. Imagine using the Tax laws to create incentives for people to save money.

Lot of people would be pouring money back in to the banks, making them healthy again. Banks would be in a better position to provide mortgage money for those who want to buy homes or refinance their existing homes, others can get a car loan, or even finance a college education. We should make the tax laws help our nation, not cripple the economy.

The cost of credit is much too high, like credit cards for example, they need to be reflective of the risk as well as, a reasonable rate of return for the investor banks, yet not gauge the consumers wallets.

3. Regulate the interest rate that banks pay on regular passbook savings accounts at 1% less than the 10 year Treasury Note Rate, currently published at 3.83%, that means all regular passbook savings accounts would be paying 2.83% to their depositors. What this does, it provide banks with liquidity for banks to lend on.

Currently many people are looking for a safe havens for cash, including many mom and pop investors, who lack the sophistication of the stock market.

4. With respect to the Bailout and foreclosed homes that would be on the federal governments books as bad mortgages. I would allow these foreclosed homes to become part of a special recapture equity pool, in which the Government would Lease these bank owned properties with an Option to Buy. I believe this Lease Option Program could ultimately save the government tons of money, by turning a negative asset (bad mortgages) into a performing asset. These properties will have a tenant maintaining the up keep, as well as paying rent, at above the market rents. At the time the lease has been exercised, the tenant would have a portion of the payments credited back to the tenant (20%) of the rent collected, can be used as a down payment, if the tenant fails to exercise their option to purchase or fail to comply with the lease provision, they forfeit any option money. They must also go through a rigorous housing counseling program, where they will learn how to budget and manage their finances. If they fail to attend classes or fail to pay the lease in timely manner, they lose the opportunity and forfeit any option money. every month they were late that they may have been entitled too.

Tenants still must also qualify with periodic accountability sessions, to insure they know how to manage their financial affairs. They must also sign an acknowledgment and agree to the terms prior to entering into a lease option contract, and taking procession of the property. They would still need to qualify for the lease financially to have a reasonable assurances of qualifying for a mortgage by the end of their lease option period. In no event, is the tenant entitled to any portion of rents collected, if they fail to qualify for a mortgage due to acts of ill responsibility. After attending these home buyer certification courses, they will be better prepared to handle a mortgage payment. This encourages success of obtaining home ownership, because they earned it. This also makes it a win for the taxpayers and it gives those who want to buy in the future with an opportunity to own their own home. The government wins, by receiving rent money while the equity eventually rises if the tenant fails to exercise the option to buy. The tenants are guaranteed they have the first right of refusal at today's prices, the community wins, as there is no blight in the neighborhood, and the taxpayer wins by returning a bad asset to a performing asset. That's a Win for

Carlos R. Arvizu Sr

TheDOn1950@aol.com

I may enter the political Arena in 2010. If you think I should, please let me know. Thanks

If GM,Ford, and Chrysler are to survive this economic recession, they need to make serious decissions as to the future of their companies, as well as their workers. they also provide jobs to other supporting services that provide parts and other related accessories.

GM, Ford, and Crysler also employ a lot of related industries. Steel, Alluminum, sheet metals, plastics, molding and a whole host of supporting companies that provide jobs to America. If these automakers go under, so do a lot of other hard working folks.

What these automakers need to do is conscentrate on is what seems to be everyone's problem, not enough sales to support itself. So what do you do? You cut expenses. That's an enivetable fact of life.

The trade unions have made it vertually difficult to keep these automakers in business. They must realize it may be necessary to make concessions or lose their workforce to foreign automakers who can afford to build outside the US and sell here in America.

Short term loans may pay the bills temporarily, but that can also be a prescription for disater also. America needs real soulutions to fix the problems. Stimulus solutions work if they can stimulate growth. Just giving you a loan to temporary get you over a minor hurdle is not the same as slumping sales, credit problem, recession and poor consumer confidence in the economy. It's like borrowing from Peter to Pay Paul, eventually, your bills will catch up to you, sooner or later, unless you have a workable plan to solve the underlying problem. Slumping sales, and consumer confidence, and a lack of credit.

Possible solutions to fix the cash flow problem are;

1. Reduce the workforce by early retiring older workers without a golden parachute. Trade stock into a 401K in liew of a golden parashute. That ultimately would be more than adequatle, especially with low stock prices and growing future returns as the company grows. This would reward the retirees for their hard work and sacrafice of an early retirement.

Union consession maybe necessary to allow New replacement workers at a lower pay wages to start over the next 5 years. Giving these companies breathing room to survive and grow.

2. The Federal Government needs to provide a tax credit or deduct the interest for those buying an American Made vehicle. That would truly be an incentive to buy American, which would indeed be a stimulus.

3. Workers who can give management ideas that can lead to money saving ideas that leads to increase production or real cost savings should be rewarded.

4. Management needs to workabke solutions for the good of their workers and their stock holders. (Employees are stockholders)

5. Consolidate plants that provide duplicated tasks.

6. Build a better automobile that proves good value.

If the company can't survive, no one survives.

Carlos R. Arvizu Sr

theDon1950@aol.com

I plan on running for politcal office within the next 2 years. If these Ideas make sense to you the reader, please let me know. These are solutions, not rederick. Thank you.

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