Lee Parker

Wow, I just read a report that shows who is leaving New Jersey. E-mail me and I will send a copy. It looks like Home Owners of moderate to low income levels are leaving in droves. The report sites the reasons below:

• NJ has one of the highest rates of income tax for low income people in the US
• NJ has very high real estate taxes
• NJ has not added any high paying jobs
• Average pay in NJ adjusted for inflation has not gone up much in 20 years.
• The average time incumbants in New Jersey stay in office is higher than the national average.

My advice: Throw all the bums out of office! Lets get term limits!

Its time for change on local levels also!

My predictions:

1. Interest rates on mortgages will start to go up.
2. Credit will remain tight.
3. No more no doc loans
4. No more stated income loans.
5. No more seller consessions
6. Every deal will be a nightmare.
7. No loan is a sure thing until it closes.
8. 20% down on everything.

So how does this help us?

1. No one will ever sell FSBO. They will need us to baby the loan and buyer.
2. Discount commissions may be a thing of the past.
3. The agents who know what thet are doing will be in demand.
4. Subject to mortgages will be a hot item
5. Seller held mortgages will be a hot item
6. Deeds of trust will be a hot item
7. Land contracts or contracts for deed will be a hot item
8. People will start looking for assumable loans again

Better learn more to earn more.

We are having another REO class this Saturday. We will go over what it takes to set up an REO Department. The class is from 11:00-3:00. Part of the class will feature instructions and links that make it easy to sign up with some of the big players in REO. Over the next few yearsREO may be the heart of the Real Estate Market. Do not be left out. It is amazing how few real estate agents even know what REO is,

As we look at the news and watch the bailout argument there is a big word of caution. Looking at history we see that when the RTC was created to take over the assets of the failed savings and loans that housing prices still went down for two years. Do not think that this bailoutwill help the real estate market. It will help the upper 1% of wealth the most. If we do have a bail out look for prices to decline for 2 years.

Did you know that NJ was number nine in the nation in the rate of forecloseures? I attend the Sheriff Sale for Middlesex and for Monmouth County on a regular basis. It is an interesting experience to say the least. All Real Estate Agents should attend at least once, but many have never attended. In Middlesex County the sale is held on Wednesday. In Monmouth County the Sale is Monday. Call me sometime if you would like to attend.