Recognition Contest
Do you recognize this man in the blue
shirt. Here's a hint: Before he got into
politics he founded Security National
Bank. First two people to
Call Me
with his name will win a $5 Gift
Certificate at Starbucks.
* Recent winners ineligible to play for 3
months.
Last
Month's Answer and Winner
That's Dr. Laura Tyson. You may remember her
from Berkeley, she taught economics while I
was there. Later she served as Chair of
Clinton's Council of Economic Advisors,
then Dean of Berkeley's School of Business,
and then Dean of the London School of
Business.
The people who correctly recognized
Dr. Tyson were:
Rob Chandra, Palo Alto, CA
Sanjay Shah, San Francisco, CA
Sunil Sethi
Realtor, Mortgage Broker, MBA, CPA
(510) 793-8600 Main
(510) 388-2436 Cell
Taking You Forward
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100% of my business is from referrals. So if
you like my service and know of others that
would appreciate receiving this newsletter,
please forward it to them as an introduction
to me. I look forward to helping you on your
next Real Estate or Mortgage transaction.
Best Regards,
Sunil Sethi
(510) 388-2436
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Next Week
look for my
Special Edition Newsletter, Highlighting the Results
from this Years API Scores.
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Real
Estate Opportunities
Tighter Lending
+
High Inventory of
New & Existing homes
+
Shaky Consumer
Confidence
+
Seasonal Slowdown =>
GREAT BUYS!
And HERE ARE SOME
GREAT BUYS!!!
In Union City:
30771 Oxford
Way
5BR/2.5BA 2308 sqft 9yrs old
$794,950
- 5,244 sqft lot.
- Priced $90,000 under last sale in
Feb. 2007
- Great School!
In Pleasanton: 8148
MOLLER RANCH DR
3BR/2.5BA 2056 sqft 10yrs old
$899,998
-Offering $17,000 seller credit
-Appraisal Value $950-$975K
- Great Schools
In San Ramon:
232 ATHEANA CT
5BR/4BA 3115 sqft 1yr old $1,044,900
- Lot is in cul-de-sac 15,889 sqft
lot.
- Offering $25,000 credit for
landscaping
- Great Schools!
In San Ramon:
650 Karin CT
5BR/4BA 3757
sqft 3yrs old $1,099,000
- 7,064 sqft lot.
- Looks Great!
- Great Schools!
First
Time Home Buyer Programs
Did you
know that many cities have 1st home buyer
programs. Union City for example offers an
interest free loan up to $80,000 for 5
years. With entry level condominiums
starting at $275,000. Total monthly housing
costs could be under $1750.
Call me to find out
about more about these programs! top
Sub-Prime Melt-Down Impact
By now you have probably read about
the escalating
Credit Crunch,
which began with Sub-Prime
Borrower defaults
and now has spread to
Alt-A
(a grade above Sub-Prime) and
Prime borrowers.
Why is this happening?
Simply - the Investors who were
buying mortgage backed securities,
have stopped because of the high
default rate.
What are the implications?
-
Sub-prime lenders and lending
has disappeared
-
Lending guidelines have been
tightened
-
Many lenders have gone out of
business; less competition
-
Jumbo Rates have jumped from ½
to 1%
The mortgage market restructuring
isn’t over. Based on the analysis
I've seen from Merrill Lynch and
HSBC,
the height of Sub-prime ARM resets
will arrive in Nov-Dec 2008.
The table below details the
expected amount of debt to reset
each quarter. The Total Debt
included Prime, Alt-A and
Sub-Prime Debt.
Mortgage ARM Reset Calendar
Source:
Merrill Lynch July 30
2007
What's
the Big Deal When ARMs
reset? Most
borrowers will experience an
increase in their monthly
payment of around 38%.
Sub-prime borrowers: (1)
Can't afford the increased
payment, (2) Their debt most
likely exceeds the property
value and (3) There is no
more sub-prime lending, so
the only option remaining is
to allow foreclosure to
happen or try a short sale.
How Will This Impact Prime
Borrowers?
-
Expect more pricing
pressure in the low and
middle market in
outlying markets
(especially where
schools are not
excellent). Avoid
Stockton, Modesto,
Mountain House. I'm
planning on buying in
Temecula, Murietta, and
Winchester in the Winter
and Spring.
Call me if you want
particulars!
- Consider refinancing
today, especially if you
have to do it
stated income,
as this option is
becoming harder. top
Are
You on the National Do-Not-Call List?
You should have all your numbers
registered on the National
Do-Not-Call
List. It takes a minute and
stops all those unsolicited calls. This
also prevents the credit bureaus from
selling your information to anyone
interested.
While you're at it register at the
National Opt-Out Prescreen to
stop getting credit card and insurance
offers in the mail. top
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