How can all of the Local Real Estate Companies Boycott the Local News Media?

Out of frustration, comes desparation. We need to ban together and Boycott all our negative newspapers, magazines, radio, T.V., and internet outlets, that promote negative news reflecting our Local Real Estate Market.

I don't know about other real estate markets in other areas, outside mine, I do know that reality is, yes, we have had some problematic loans that some people should have not gotten into, however having said that, typically, throughout history, we have had on average a normal 3% to 5% delinquency rate, checking with the major banks, would confirm that.

If you were to really understand the true picture of the housing market, we have 70% home ownership in this country. California, had approx. 477,000 properties sold last year in 2006, approx 334,000 of the buyers, were equity rich, and used their equity to buy, whether it was to move up or down size.

The balance of those 143,000 other buyers, did not necessarily use 100% financing. 15% of those who bought last year, were investors, coming out of equity rich 1031 exchanges, which required them to use those proceeds for their up leg property, they did not use 100% financing.

Of the remaining 121,500 who purchased , used some type of Government Down Payment Assistance Programs (3% to 5%), such as Community Block Grant Programs, Silent Second Bond Programs, Chafa, Cal Vet and VA Financing, and Seller Carry Back's, the remaining 10 %to 12% used 100% financing. Not all those who used 100% financing are in trouble.

In reality, do your own detail research. I can just say that in 2006, California had 477,000 properties sold, 6,738 homes went into default (NOD), but the reality is California had 2,768 Homes sold at the Trustee Sale that went back to the banks as an REO.

Today, I agree that there are more properties, that are delinquent, more NOD's and more Trustee Sales. SO, let's examine facts from Hype, of the 21 Cities in my local Real Estate Market, stretching from Long Beach to Whittier, from The City of Los Angeles to Downey and surrounding communities, there approx 2 million households, ...

From January 1st, 2007 to October 1st, 2007, there were 12,600 Notices of Default (NOD's) out of those who went into Default,...... 6,649 actually made it to the Trustee Sale phase (Officially Notifying the Borrowers that they are about to lose their homes, if they did not bring their payments current), Guess how many actually Lost their Homes to the Bank?....Try this, only 2,957 Home owners actually lost their homes to foreclosure. That's less than 1% of the total in the state of California, by comparison.

Between the News Media and Politicians jumping on the band wagon, just to get their names in the news (Election year promo), use scare tactics to grab attention, either to sell advertising or get elected.

What 100% financing did do, was create 80% more homeowners, that are really doing quite o.k. with their mortgage, 20% that used 100% financing, are not necessarily the victim of bad mortgages, believe it or not, unfortunately, some fall because of their own short comings, poor budgeting, mismanagement, yes indeed, victims of preditory lending, but it all falls back on education of the buyers and qualifying.

Educating the buyers, who buy, and knowing the potential pitfalls, on how these types of loans worked, could have prevented some of the problems that we are seeing today, couple that, with a few over zelious loan originators, who didn't understand how these types of loans work themselves, and Wall Street not understanding that 17 months of short term interest rate hikes in the fed funds rate, would slow down the rate of appreaciation.

Wall Street created this easy money feeding frenzy, and did not realize that values would decline, eliminating their cushion of equity protection, known as (Loan to Value), and many of those sub prime lenders, got caught with their pants down. (I don't feel sorry for them either.) ..... Here is why we have a credit crunch, so to speak,.......

Wall Street will not buy these loans on the secondary market, because of the defaults that are occuring, due to no equity behind them. They bailed out...............

FannieMae, and FreddieMac own guidelines prevent them from buying these loans as they are non conforming, so many of these Sub Prime Lenders were caught holding the bag, forcing them to close their doors. Like a Checking account, with no money in it, you start to bounce checks, and you don't have the reserves like over draft to bail you out, much like the secondary mortgage market, they buy loans, so that lenders can continue making loans.

The other part of the story, as Paul Harvey would say, "Now for the rest of the Story"

Now as far as the News media is concern, What can we do collectively, to voice our opionions, where we get th news media attention? .....The only thing I can think of is to Boycott these organization with our advertising dollars, and spread the word that you are fighting back.

It's not unethical to voice your opionion, that's one of the reasons I Blog. I want to spread the word that the News Media has not only the right to report the news, but it also has a responsibility to it's readers not to panic them like a herd of Stampeding cattle, that frightens it's readers by sensationalizing the news where it can easily distort that News and is easily manipulated it's readers by mis intrepeting the headlines, just for the sake of capturing the readers interest in their advertisers advertising.

Carlos R. Arvizu Sr.

562-755-3856