You must have been living in a cave if you haven’t heard of all the mortgage woes out there in past weeks.
Mortgage companies closing their doors, declaring bankruptcy because no one wants to buy their loans, employees kicked out onto the streets (13,000 since last Friday). There was talk even of Warren Buffett buying Countrywide. (more on Buffett below)
Is there hope? Yes there is if you use trusted resourses – I foresee a “Flight to Quality”. Quality professional services from quality companies and quality advisors.
Lenders: Banks may be the safest bet – they don’t have to sell the loan on to a third party to remain liquid and in business, they lend their customers deposits to do that – think Bank of America, World Savings, Wells Fargo to name a few.
Case in point: There were horror stories around the country last week of homes that recorded and closed only to find that the lender cancelled the wired funds, ouch! Moving vans at the ready, cars packed, families plans totally disrupted. It dosn’t get much uglier than that.
My company, Prudential California Realty (PCR) selling real estate here in San Diego had 5 such cases. PCR used their clout and bingo – Wells Fargo (and First Capital) stepped in and saved the day.
Short explanation: PCR is a Homeservices of Ameria company. Homeservices is a subsidary of Warren Buffetts Berkshire Hathaway. Buffett has a major stake in Wells Fargo.
Get where I’m going with this?? Don’t trust a major life changing event like buying or selling a house in San Diego (or anywhere else) to just anyone with a licence – not even a relative you owe a favour to, or the mortgage broker who offers to write up the offer and rebate you part of his commission – sorry, it just isn’t worth the risk anymore (and probably wasn’t before either!)
Loans are still available, the sky has not fallen – just ask the right people for advice. You might try Greg Parker (greg@gregparkerteam.com) at First Capital Mortgage, a PCR affilliate backed by an extreamly well-captialised AAA rated entity in Berkshire Hathaway.
Written by Peter Toner, 3rd generation selling real estate.
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Great article, Peter. I especially liked your phrase “flight to quality”
All the more reason to pick an experienced agent that has the resources like PCR. The sky is not falling for those who have the sense to not leave to chance what is perhaps their most important financial decision in their life. Just asking the right people for advice can be life changing in this market! What good is a rebate if you can’t get the loan or the right price for the house? Flight to quality will become more appreciated in this market…
Peter,
the comment of “Don’t trust a major life changing event like buying or selling a house in San Diego (or anywhere else) to just anyone with a licence – not even a relative you owe a favour to” brings a picture to mind: a fellow needs a heart transplant and his nephew just got certified as a surgeon. So, who does the gentleman pick to do the transplant? If I were him it would not be my nephew!
Great article!
Peter-
Wonderful insight into a market filled with turmoil. You are definitely ahead of the curve of most professionals in your area and nationwide.
James Nellis- The Nellis Group
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