Chris Johnson | Daytona Beach | Short Sales | Foreclosures | Bank Owned | Properties

FL Population Declines by 58,000 People

noreply@blogger.com (www.ChrisThePro.com) — Tue, 20 Oct 2009 12:52:00 +0000

Since World War II Florida population has seen year-over-year growth and with some years rapid growth. During the real estate boom Florida had an influx of 1,000 people per day. However, a report come out today annoucing that Florida population has actually shrunk by 58,000 people over the past 12 months, in other words, we are loosing 158 people per day. This affects not just real estate but every facit of our ecomony. Job losses is a major contributor to this, but also public policy has been sited a factor as well.

Number of Daytona Beach Residential Sales Up 4 Months in a Row!!!

noreply@blogger.com (www.ChrisThePro.com) — Sun, 03 May 2009 16:58:00 +0000

It's been quite some time since I've posted to my blog because I've been so busy with showing and writing contracts. YEAH! As they say, if you throw enough jello against the wall...something is bound to stick...lol.

So, the number of residential sale in Daytona Beach, FL for April 2009 rose by 11% over April 2008. This is 4 consecutive months in a row. As a matter of fact, the Daytona Beach MLS inventory for residential properties have fallen another 100 properties to 5,323 as of May 3rd, 2009. These are all signs that the market is picking back up, but it doesn’t mean we’ve hit the bottom.

For those buyers out there still on the fence asking "have we hit the bottom yet?", I would tell you that this data, although encouraging, is still inconclusive of reaching the bottom. One thing I do know, is that interest rates will not remain at these lows for too much longer. There’s much talk about not just inflation but hyper inflation (double digit inflation). The only way to curve that is to raise rates. So, buyers that will need financing to purchase a residential property you might want to consider pulling the trigger sooner than later. Those of you that are Cash buyers, you have the flexibility to know when to “hold’em” and be patient for the perfect buy.

For those sellers out there holding out for the best possible price, know that although the data is showing signs of recovery, there are other national indicators that are showing signs that we are still going to be in this for the long hall. Many of the top financial analyst foresee the large banking institutions to be under capitalized which would create losses in the remaining quarters of 2009. I believe, based on what I’m seeing with loans, that banks will be forced to contract even further on credit and new home loans. I don’t believe we’ve seen the worst of these financial issues. We will most likely see further foreclosures and inventory remain fairly constant. Although we’ve seen a drop in the Local Daytona Beach market, I believe it isn’t a significant enough of a drop to waive the “checkered flag” and say the market contraction is over.

Only time will tell where this will end, but I can tell you…if you look hard enough there’s always great buys!

Daytona Beach MLS - Chris Johnson - April 10th, 2009

noreply@blogger.com (www.ChrisThePro.com) — Fri, 10 Apr 2009 15:39:00 +0000

It's been a couple weeks since I've updated everyone on the Daytona Beach MLS inventory mainly b/c I've been out showing property so much lately! It feels good to have the activity back in the market, but it sure is keeping me busy!

Daytona Multiple Listing Service (MLS) inventory level for Residential properties has been on a steady decrease for the past two weeks. In the middle of March 2009 residential real estate listings for Daytona MLS were 5,677. Today residential inventory level is at 5,483. This is a decrease of almost 200 residential properties.

In March 2009 there were 214 single family home sales and 288 residential properties sold (which includes single family homes.

I posted these findings to my website this week...

Single Family Home Sales In Daytona Beach MLS See Positive Gains It is interesting to note that over the past 3 months (Dec 2008 through March 2009) Single Family Home sales in Daytona Beach, FL have increase substainally over the previous year.

December 2008 Single Family Home Sales In Daytona Beach MLS increase +13% over 2007
January 2009 Single Family Home sales In Daytona Beach MLS increeased +35% over 2008.
February 2009 Single Family Home sales in Daytona Beach MLS increased +45% over 2008.
March 2009 Single Family Home sales in Daytona Beach MLS increased +31% over 2008.

Fed to Buy Up US Treasury Bills - www.ChrisThePro.com

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Mar 2009 13:06:00 +0000

In an effort curve further contractings in US economy the Federal Reserve decided to buy up nearly $2 Trillion of non-traditional assetts while leaving key interest rates low.

"Job losses, declining equity and housing wealth and tight credit conditions have weighed on consumer sentiment and spending," the Fed's monetary-policy committee said this afternoon in announcing its move.

Now the Fed previously stated it planed to buy just $600 Billion in mortgage bonds, U.S. Treasury Bonds and other securities on the open market, but is now planning closer to tripple that amount at $1.75 Trillion.

So, how does this affect housing? In the short run...offen these policies impact mortgage rates causing them to lower. In this case...rates should be back a records lows. Experts are saying this could lower 30 year mortgage rates as low as .25 %.

Daytona Beach, FL Multiple Listing Service - March 16th

noreply@blogger.com (www.ChrisThePro.com) — Mon, 16 Mar 2009 13:10:00 +0000

Daytona Multiple Listing Service (MLS) inventory level for Residential properties remained flat between week ending March 7th to March 16th. This morning Daytona Beach MLS reports to have 5,628 residential real estate listings. This is up 2 properties from 10 days ago.

So Far in March 2009 there have been 81 single family home sales and 106 total residential properties sold (which includes single family homes, condos, town homes and mobil ).

Daytona Beach Recently Sold Homes

Daytona Beach Homes For Sale

Daytona Beach Recently Sold Homes

Must See Video: Jonathan Jarvis’ The Crisis of Credit Visualized

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:27:00 +0000

BIG Thanks to LT...I've got a better understanding of why we are in the mess we are in after watching this Must See Video..

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

For other information, please visit my blog at http://christhepro.blogspot.com/

US New Home Construction - Chris Johnson - Daytona Beach - Port Orange - Ormond Beach

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:26:00 +0000

I heard a report this morning that new home construction has slowed for the 35th consecutive month. This is a record low since 1959. This has forced home builders nationwide to have scaled back employees, operations and many have file bankruptcy.

I heard another statistic that said if Americans do not build another residential property we would have enough property to house US population with future growth for the next 10 years.

For Daytona Beach, we can expect higher number of foreclosures and lower median homes prices for at least 12-18months.

The Real Estate Book...Chris Johnson, REALTOR

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:25:00 +0000

I just thought I would share with all you other agents out there wondering where to market your listings! I have been marketing my listings in The Real Estate Book for only one month and I've generated roughly 5 leads. I think this is a great magazine to advertise with and if it is available in your region then strongly consider marketing whith The Real Estate Book!

Google Search on www.ChrisThePro.com

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:24:00 +0000

I have added a google search bar on my website www.ChrisThePro.com. You can use this search feild just like using a google search field. This makes it easier for customers who are on my site already search foreclosures, REO's, Bank Owned Homes, MLS, Daytona Beach area Homes etc. they can search google as well. Go to my website www.ChrisThePro.com and try it yourself.

Forbes.com Article on Best and Worst U.S. Housing Markets

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:23:00 +0000

Matt Woolsey, Forbes.com Feb 26th, 2009

The cities that are showing signs of stabilization and those that continue to unravel.
Wishing you'd left the game earlier is a time-honored Las Vegas tradition. Today, that's true not only for gamblers but for homeowners there. The last time Las Vegas properties were worth more than the average mortgage? August 2003.

Blame overbuilding and risky loans, a gambling mentality or even the desert sun, but based on Thursday's results from the S&P/Case-Shiller home price index, which measures metro home prices in 20 cities through December 2008, Las Vegas is the weakest market in the country. Prices are dropping quickly (down 4.81% since last month and 33% in the last year), the pace of decline is accelerating at the third-fastest rate in the nation, and based on lost equity, homeowners are out 65 months of mortgage payments.

In Depth: 10 Best And 10 Worst U.S. Housing Markets

All signals that things aren't likely getting better any time soon.

"Vegas is a market unto its own," says Steve Cesinger, chief financial officer at Dewberry Capital, an Atlanta-based real estate investment firm. "I don't know what those guys were drinking when they thought all this building made sense. If it does work out soon, then there's some force out there in the universe that I'm not aware of."

The S&P/Case-Shiller home price index, released monthly, examines repeat home sales in 20 metro markets, including the city core and surrounding suburbs. This means that while prices in tony San Francisco neighborhood Pacific Heights might be holding up, the net effect of including a bankrupt suburb like Vallejo brings down the metro area's score. Each city's score is assigned based on the price difference from 2000, which is scored as 100. So San Francisco's score of 130.12 means prices are up 30.12% from 2000. It still has the potential for a further fall, given the 31% year-over-year drop.

Forbes also analyzed monthly declines and year-over-year declines in home prices to determine where prices were falling fastest and where those drops were picking up momentum. It's not a good thing for San Diego that prices from November 2008 to December 2008 fell 2.13%, but as prices declined by 2.29% from October to November, and 2.44% from September to October, the speed with which prices are falling is slowing.

That slowing rate of decline, also seen in places such as Denver, Washington, D.C., and Boston, helped rank those cities as some of the stronger markets in the country.
Contrast that with Minneapolis, where prices fell just 0.96% from September to October, but by December, the rate of month-to-month declines had jumped to 4.6%, an unwelcome acceleration.

Next, to rule out places in complete depression, we looked at how many months of equity homeowners have lost. Places like Detroit (-2.98%) and Cleveland (-2.07%) haven't declined as quickly over the last month as Seattle (-3.63%) or Charlotte (-2.55%), but that's because prices in those two Rust Belt cities are so depressed it's difficult for them to fall any further. Detroit and Cleveland homeowners have lost 141 and 92 months of equity, respectively, whereas Seattle and Charlotte prices have only declined for the last 39 and 33 months, respectively.
One other factor to consider with the Case-Shiller numbers is that the index tracks repeat home sales. That means cities like Tampa and Miami, which are notorious for overbuilt new inventory and high numbers of foreclosures, perform better on the index than they ought to, as those two factors are not tracked.

"Case-Shiller doesn't take into account new construction or foreclosure sales," says Jonathan Miller, president of Miller Samuel, a Manhattan residential appraisal firm. "In some of these markets, I'm not sure how you can ignore new construction or foreclosures."

Another city with foreclosure and new construction problems is Phoenix, where bad loans have mounted and mortgage delinquencies, a forebearer of foreclosures, have risen.

"It's pretty gruesome," says Anthony Sanders, a finance professor at Arizona State University. He points to delinquencies as a major problem and a sign that the Valley of the Sun won't be bouncing back any time soon. In Phoenix, seriously delinquent loans--those that haven't been paid in 90 days--have increased from 3.5% to 27.3% for subprime loans since this time in 2005. Adjustable-rate mortgages that are seriously delinquent have gone from less than 1% to 20.2% in the same period.

With those problems looming on the horizon in many cities across the country, Obama might need more ammunition than his proposed $75 billion foreclosure prevention package offers.
Then again, even in a boom-bust capital like Los Angeles, if you bought in 2000, paid your mortgage on time and are still in your home, you've seen a 71.5% price appreciation. There's something to be said for that kind of responsible, long-term investor.

Daytona Beach MLS - Chris Johnson - February 27th, 2009

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:22:00 +0000

Daytona Multiple Listing Service (MLS) inventory level for Residential properties remained flat between week ending Feb 21th to Feb 27th. Tonight Daytona Beach MLS has 5,726 residential real estate listings. This is up 7 properties from last Friday.

So far in February there have been 160 sidential home sales in the Daytona MLS. Up from 49 from last week.

Squaring Accounts...

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:19:00 +0000

I've decided to be a little more transparent today and dive into a little bit of my personal life to explain how I feel about the way some banks are treating their customers.

I been in real estate since 2004 and have been fairly successful. Real estate was a career move for me once I graduated college and not just some "Get it while it's hot" mentality. So, I positioned myself well by setting up a corporation as a pass through for my income. This enabled me to take out loans (ie credit cards and credit lines) through my corporation which kept it separate from my personal credit report. Over the past 2 years as sales have slowed, income has dropped off I've resorted to using my business credit cards more and more to float me through this slower period. Reluctantly, my balances have gotten pretty high, but I have never once been late with any of my creditors while I've been in business. Often times I would pay triple the minimum balance.

Now to be completely transparent, as sales have slowed it became increasing difficult to make my mortgage payments. In November 2008 and December 2008 I was unable to make my mortgage payments on my house and I feel behind. As a result, last month both of my business credit cards, (Capital One and Bank of America), reduced my available credit to just above my outstanding balances despite paying $1,000 on each card in January. I closed over $1,100,000 in sales in December 2008 and was able to catch up on both my first and second mortgages in January.

Today I received a letter from my Bank of America business card explaining they have closed my business credit card account based on my Nov and Dec mortgage delinquencies and my high balances. Now, Capital One hasn't done this. As a matter of fact, Capital One graciously lowered my interest rate to 0.0% on my card for 3 months to help me through this process. In response to Bank of America's letter, I called to at least have them activate my account and to lower my available credit to what I owe, so that I could pay down and still use the card. Of course they refused and also refused to provide any work out plan like the one I reference from Capital One.

So here's my point, you got a large bank like Bank of America who has received $20 billion in aid and $118 billion worth of guarantees against bad assets from our Federal Government. Who's paying these bailouts, WE ARE...THE TAX PAYERS...THE SMALL BUSINESSES! Yet, when we go to Bank of America, as customers in good standing for 4 years, we receive NO MERCY...NO GRACE...NO UNDERSTANDING! I'm furious about this!

It reminds me of a parable Jesus spoke about in Matthew 18 that reads:

23-25 "The kingdom of God is like a king who decided to square accounts with his servants. As he got under way, one servant was brought before him who had run up a debt of a hundred thousand dollars. He couldn't pay up, so the king ordered the man, along with his wife, children, and goods, to be auctioned off at the slave market.

26-27"The poor wretch threw himself at the king's feet and begged, 'Give me a chance and I'll pay it all back.' Touched by his plea, the king let him off, erasing the debt.

28"The servant was no sooner out of the room when he came upon one of his fellow servants who owed him ten dollars. He seized him by the throat and demanded, 'Pay up. Now!'

29-31"The poor wretch threw himself down and begged, 'Give me a chance and I'll pay it all back.' But he wouldn't do it. He had him arrested and put in jail until the debt was paid. When the other servants saw this going on, they were outraged and brought a detailed report to the king.

32-35"The king summoned the man and said, 'You evil servant! I forgave your entire debt when you begged me for mercy. Shouldn't you be compelled to be merciful to your fellow servant who asked for mercy?' The king was furious and put the screws to the man until he paid back his entire debt. And that's exactly what my Father in heaven is going to do to each one of you who doesn't forgive unconditionally anyone who asks for mercy."

Bank of America...You're like this evil servant who was forgiven of it's debts and then goes out and beats your slaves and throws them in jail! I pray you govern yourselves more righteously as time moves on b/c if not, you will no longer be known as BANK OF AMERICA...But instead...BANK OF ROBBING AMERICA!

Moral Hazard

noreply@blogger.com (www.ChrisThePro.com) — Wed, 04 Mar 2009 15:18:00 +0000

Here's an interesting video that makes some good since. Thanks MG!!!

Rumors About Nationalizing Banks

noreply@blogger.com (www.ChrisThePro.com) — Fri, 20 Feb 2009 22:56:00 +0000

Over this past week I’ve heard many rumors of Citi Bank and Bank of America being nationalized. For those not up on this terminology, nationalization is the act of taking an industry or assets into the public ownership of a national government or state.

There are many views regarding this topic. On Wikipedia has a list of For and Against philosophies surrounding nationalization and I posted them below.

For

Public services. According to the theory of public goods, some services, such as defense, cannot be provided by the private sector directly—only a government system of taxation can finance them. Others (merit goods), such as education, can be under-provided by the private sector (according to social standards concerning access to them).
Essential services. Certain political theories (namely social justice theories) consider some services as essential (i.e. providing the service outweighs other concerns, especially commercial ones). A very common example here is health care. In the case of such essential services, nationalization may ensure their continuation regardless of commercial, environmental, or other external pressures. According to proponents of such theories, these concerns are surpassed by the positive externalities that are deemed likely to result from ensuring the service's availability to everyone.
Efficiency. In natural monopolies, competition is wasteful, and will tend to be eliminated by competitive forces (leading to a private monopoly or oligopoly). A public sector monopoly can be held to account via democratically-elected governments, in a way in which a private monopoly cannot. (A private monopoly may be subject to regulation, but this may be an inefficient way of securing the public interest.)
Accountability. As mentioned above, while a governmental monopoly is nonetheless still a monopoly, it is answerable to the electorate rather than a small group of shareholders. (e.g. if the telephone service is nationalised, voters can bring pressure onto the government to provide better services, and parliament may have the power to sack anyone responsible for a reduction in the quality of service).
Consumer interests. Public ownership can protect consumer interests in sectors where competition is low, where choices are important but made infrequently, and/or where consumers do not have the expertise to make good decisions (such as in health care).
Common good. A profitable nationalised industry contributes with its profits directly to the common wealth of the whole country, rather than to the wealth of a subset of its population.
Financial security. Public sector institutions have access to finance at government interest rates, which are (almost) always lower than even the most financially secure private sector firms, because the government is unlikely to go bankrupt, which means less risk to the lender.
Work ethic. Employees may be more inclined to view their work positively if it is directed by a management appointed by a government that they have a say in electing, rather than a management representing a shareholding minority. Also, they may gain intrinisc satisfaction knowing their work is important and essential for society as a whole. There has been discussion of a public service ethos which makes public sector workers work harder than they would for a private employer.
Equity. Public ownership can help prevent extreme imbalances of wealth.

Against

Waste. Government ownership may lead to waste (x-inefficiency) if it proves unable to motivate management and personnel through appropriate incentives, including appropriate pay and threat of redundancy.
Consumer choice. Public ownership in an industry which could be competitive in private hands may stifle innovation if proper incentives are not provided by the government. Consumer choice may be reduced and there may be no alternative sources - and no catalysts for alternative sources - of goods or services that better meet consumer preferences.
Misinvestment/over-investment. Public ownership of profitable services may lead to "gold-plating" (over-investment in assets) if decisions are driven by engineering ideals and not efficiency concerns.
Unprofitable companies survive. Public ownership of a loss-making service or industry (such as flu vaccines) may inhibit the changes needed to ensure long-term profitability (or permit bankruptcy). This may mean subsidising unnecessary losses indefinitely.
Misallocations of labour and money. The government may be inefficient in running production, trading, or service operations, in the sense of causing misallocations of labor and capital, with consequent reductions in the standard of living and economic growth.
Accountability. Accountability to the market may be eliminated, and accountability through government may be an insufficient replacement, particularly if an industry or service does not have a high public profile or if the government is not democratic.
Influenced by politics. Decision-making in the public sector may be prone to interference from politicians for political or populist reasons. The industry may be over-staffed in order to reduce unemployment; it may be forced to conduct transactions or actions in certain areas in order to win local votes; it may be forced to manipulate its prices in order to control inflation. Of course, some of these measures may be considered positive rather than negative, but if they are not taken properly, in the long run they are likely to be an inefficient way to meet the desired goals.
Source of Income Sometimes governments are accused for overcharging for products where they hold a monopoly, thus utilising them as an additional source of income, or hidden tax.

Both sides pose valid arguments…however, I believe we are a nation based on capitalism and nationalizing our banks is against who we are as Americans. Just my thought though.

Daytona Beach MLS - Chris Johnson - February 20th, 2009

noreply@blogger.com (www.ChrisThePro.com) — Fri, 20 Feb 2009 22:56:00 +0000

Daytona Multiple Listing Service (MLS) inventory level for Residential properties remained flat between week ending Feb 13th to Feb 20th. Tonight Daytona Beach MLS has 5,719 residential real estate listings. This is down 4 properties from last Friday.

So far in February there have been 111 residential home sales in the Daytona MLS. Up from 66 from last week.

Quotes from A Billionaire

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 15:04:00 +0000

Billionaire Wilbur Ross was interviewed by bloomberg and he was quoted saying the following: 1

12 Million US homeowners under water
Since this housing crisis began, Americans have lost $5.5 Trillion in net worth.
We have too many banks! I expect 1,000 banks to go away.
We have over 8,000 banks in the US and That's ridiculous.
No recovery in 2nd half of 2009...it's going to take much long.
The Resolution Trust Corporation (RTC) problem is much smaller than what we are dealing with today.
The reason your not seeing sales isn't b/c there aren't people willing and able to buy, its that the products are not properly marked.
Top 10 US financial institutions write downs is in excess of $500 Billion.
This mess took years to build and it's going to take quite a long time to fix.

Watch more bloomberg

Shore It Will...?

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 15:03:00 +0000

President Obama was in Mesa Arizona yesterday where he announced a plan to "Shore Up" the housing market by providing $75 Billion in direct spending. This effort may cost tax payers as much at $275 Billion in taxes. What's interesting is that they said it would help roughly 9 million people refinance and stay in their home. I watched a video earlier this week where Billionaire Wilbur Ross Jr said more than 12 million homes owners in the US are "under water". So, what will happen to the other 3 million US homeowners under this plan? How will they decide who gets to participate and who doesn't? I mean even Obama said "This plan will not save every home, but it will give millions of families resigned to financial ruin a chance to rebuild."

This article goes on to say (New York Times) "Almost one in 10 home mortgages is either delinquent or in foreclosure, and analysts estimate that at as many as six million families could lose their homes over the next three years in the absence of government action."

What's realy interesting is that last summer congress pass the Hope 4 Homeowner bill which was in an effort to "shore up" roughly 400,000 homeowners needing to refinance to stay in their home. Since that bill was passed, can you guess how many homeowners it helped? No not 10%....not 10,000...no not even 1,000. Only 25 homeowners nationwide have been able to participate in this program. So, will this new plan work...? I'm "shore" we'll see one way or another?

The Secret Is Out!

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 13:45:00 +0000

I read an article today that UBS, the largest bank in Switzerland, agree to reveal the names of wealthy Americans whom the I.R.S. suspects of using offshore accounts at the bank to evade taxes. UBS settled and has agreed to pay $780 Million for it participation in tax evading activities.

One way to look at it is that we just got our first 1% covered on the bail out debt we'll be paying back through future taxes.

As a part of the settlement, pressured by indictment threats for UBS executives, they may ultimately disclose the identities of a few hundred American customers that have evaded taxes between 2000 and 2007.

If you want to read more, check at this add: Click the link. New York Times

'Rocket Docket' - Foreclosures Rocket Through Court Systems...

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 13:44:00 +0000

I read an article today that someone sent me regarding foreclosures in Lee County, Florida. In 2007, Lee County courts house had about 1,900 foreclosure hearings on the books. Today, they have roughly 24,000. Judges ask 2 question, it takes 15 Seconds, and the gafle falls after the judge says 45 Days to Get Out. One Judge says, "A guy hasn't paid his mortgage in over a year...What's to Talk About?"

This is unpresendented. Our nation hasn't seen anything like this tsunami of foreclosures ever.

Here's the link if you want to read more...
http://online.wsj.com/article/SB123491755140004565.html

My Biggest Success...

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 13:43:00 +0000

Bella London born 2/17/2009 at 2:17AM. She's 7lbs 14oz and is 21inches long. This was the most amazing night of my life!!! Just had to Share...

Could We See 7,000 or Even Lower?

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 13:42:00 +0000

Prices of Government Bonds started to fall on Friday the 13th (mmm...interesting date) as the House approved nearly at $800B stimiulus plan. Some believe that this decline in Government Bonds could be the beginning of the Stock Market Capitulation ("Crash") that so many have been waiting for or expecting. Could We See the Dow hit 7,000 or Even Lower? If so, will there be an influx on investors back to real estate to gobble up some the non-performing assests of failed banks? Only those with cash will stand to benefit as banks still tighten on credit.

More on REO's and Bank Notes for sale click here or visit www.ChrisThePro.com

Fed Cheif's Boyhood Home is Sold After Foreclosure...

noreply@blogger.com (www.ChrisThePro.com) — Thu, 19 Feb 2009 13:41:00 +0000

It has been reported that Fed Cheif's boyhood home was Sold After Froreclosure. Not that the mess we are in is Bernanke's fault, but it is ironic that his childhood home was sold in foreclosure.

FDIC Already Liquidates The Assets of 13 Charter Banks in 2009 - Chris Johnson - Daytona Beach REALTOR

noreply@blogger.com (www.ChrisThePro.com) — Sun, 15 Feb 2009 22:54:00 +0000

The FDIC has already liquidated / closed 13 of its chartered bank so far in 2009. Billionaire Wilbur Ross expects 1,000 FDIC Charter Banks to fail as the US economy continues to deteriorate. This only leads me to believe there's huge opportunity in the housing and financial markets as long as you play your cards right.

I am currently working with one large capital investment group looking to liquidate Florida bank notes and REO's from $.07 to $.80 on the dollar. The see my website at http://www.christhepro.com/625536.html for more information.

All the thanks to MG (you know who you are)!

Its Been 20 Years for Japan...How long will it take us?

noreply@blogger.com (www.ChrisThePro.com) — Sun, 15 Feb 2009 05:38:00 +0000

It has come to my attention through a very knowledgeable source M.G. (you know who you are) that the actions the US is taking through propping up banks and correcting credit issues may only cause further demise to our financial system.

In 1989, Tokyo Japan hit an all time high real estate boom with properties reaching as high as $93,000/SF in the Ginza Financial district. Over a gradual 15 year period prices of these financial district properties reached a low of 1% of its all time high and residential properties followed by reaching lows of 10% of there highs of 1989.

From 1989 to 1997, The Japanese Central Bank and the Japanese Government intervened just as the FED and US government is doing as we speak. Somehow we have not grasp the concept of “history repeating itself” which leaves me with one question: It has been 20 years since Japan hit it’s all time real estate boom and they are still feeling financial hardships...How long will it take us Americans to crawl out of the trench we have dug?

In October 2008 the Japanese Nikkei 225 stock index reached a 26-year low of 6,994.90.

Click any one of the links to read more on the The Lost Decade

Chris Johnson - REALTOR

How the economic stimulus plan could affect you...

noreply@blogger.com (www.ChrisThePro.com) — Sun, 15 Feb 2009 02:25:00 +0000

An examination of how the economic stimulus plan will affect Americans.
___
Taxes:
The recovery package has tax breaks for families that send a child to college, purchase a new car, buy a first home or make the ones they own more energy efficient.

Millions of workers can expect to see about $13 extra in their weekly paychecks, starting around June, from a new $400 tax credit to be doled out through the rest of the year. Couples would get up to $800. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year.

The $1,000 child tax credit would be extended to more low-income families that don't make enough money to pay income taxes, and poor families with three or more children will get an expanded Earned Income Tax Credit.

Middle-income and wealthy taxpayers will be spared from paying the Alternative Minimum Tax, which was designed 40 years ago to make sure wealthy taxpayers pay at least some tax, but was never indexed for inflation. Congress fixes it each year, usually in the fall.

First-time homebuyers who purchase their homes before Dec. 1 would be eligible for an $8,000 tax credit, and people who buy new cars before the end of the year can write off the sales taxes.
Homeowners who add energy-efficient windows, furnaces and air conditioners can get a tax credit to cover 30 percent of the costs, up to a total of $1,500.

College students — or their parents — are eligible for tax credits of up to $2,500 to help pay tuition and related expenses in 2009 and 2010.

Those receiving unemployment benefits this year wouldn't pay any federal income taxes on the first $2,400 they receive.
___
Health insurance:
Many workers who lose their health insurance when they lose their jobs will find it cheaper to keep that coverage while they look for work.

Right now, most people working for medium and large employers can continue their coverage for 18 months under the COBRA program when they lose their job. It's expensive, often over $1,000 a month, because they pay the share of premiums once covered by their employer as well as their own share from the old group plan.

Under the stimulus package, the government will pick up 65 percent of the total cost of that premium for the first nine months.

Lawmakers initially proposed to help workers from small companies, too, who don't generally qualify for COBRA coverage. But that fell through. The idea was to have Washington pay to extend Medicaid to them.

COBRA applies to group plans at companies employing at least 20 people. The subsidies will be offered to those who lost their jobs from Sept. 1 to the end of this year.

Those who were put out of work after September but didn't elect to have COBRA coverage at the time will have 60 days to sign up.

The plan offers $87 billion to help states administer Medicaid. That could slow or reverse some of the steps states have taken to cut the program.
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Infrastructure:
Highways repaved for the first time in decades. Century-old waterlines dug up and replaced with new pipes. Aging bridges, stressed under the weight of today's SUVs, reinforced with fresh steel and concrete.

But the $90 billion is a mere down payment on what's needed to repair and improve the country's physical backbone. And not all economists agree it's an effective way to add jobs in the long term, or stimulate the economy.
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Energy:
Homeowners looking to save energy, makers of solar panels and wind turbines and companies hoping to bring the electric grid into the computer age all stand to reap major benefits.
The package contains more than $42 billion in energy-related investments from tax credits to homeowners to loan guarantees for renewable energy projects and direct government grants for makers of wind turbines and next-generation batteries.

There's a 30 percent tax credit of up to $1,500 for the purchase of a highly efficient residential air conditioners, heat pumps or furnaces. The credit also can be used by homeowners to replace leaky windows or put more insulation into the attic. About $300 million would go for rebates to get people to buy efficient appliances.

The package includes $20 billion aimed at "green" jobs to make wind turbines, solar panels and improve energy efficiency in schools and federal buildings. It includes $6 billion in loan guarantees for renewable energy projects as well as tax breaks or direct grants covering 30 percent of wind and solar energy investments. Another $5 billion is marked to help low-income homeowners make energy improvements.

About $11 billion goes to modernize and expand the nation's electric power grid and $2 billion to spur research into batteries for future electric cars.
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Schools:
A main goal of education spending in the stimulus bill is to help keep teachers on the job.
Nearly 600,000 jobs in elementary and secondary schools could be eliminated by state budget cuts over the next three years, according to a study released this past week by the University of Washington. Fewer teachers means higher class sizes, something that districts are scrambling to prevent.

The stimulus sets up a $54 billion fund to help prevent or restore state budget cuts, of which $39 billion must go toward kindergarten through 12th grade and higher education. In addition, about $8 billion of the fund could be used for other priorities, including modernization and renovation of schools and colleges, though how much is unclear, because Congress decided not to specify a dollar figure.

The Education Department will distribute the money as quickly as it can over the next couple of years.

And it adds $25 billion extra to No Child Left Behind and special education programs, which help pay teacher salaries, among other things.

This money may go out much more slowly; states have five years to spend the dollars, and they have a history of spending them slowly. In fact, states don't spend all the money; they return nearly $100 million to the federal treasury every year.

The stimulus bill also includes more than $4 billion for the Head Start and Early Head Start early education programs and for child care programs.
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National debt:
One thing about the president's $790 billion stimulus package is certain: It will jack up the federal debt.

Whether or not it succeeds in producing jobs and taming the recession, tomorrow's taxpayers will end up footing the bill.

Forecasters expect the 2009 deficit — for the budget year that began last Oct 1 — to hit $1.6 trillion including new stimulus and bank-bailout spending. That's about three times last year's shortfall.

The torrents of red ink are being fed by rising federal spending and falling tax revenues from hard-hit businesses and individuals.

The national debt — the sum of all annual budget deficits — stands at $10.7 trillion. Or about $36,000 for every man, woman and child in the U.S.

Interest payments alone on the national debt will near $500 billion this year. It's already the fourth-largest federal expenditure, after Medicare-Medicaid, Social Security and defense.

This will affect us all directly for years, as well as our children and possibly grandchildren, in higher taxes and probably reduced government services. It will also force continued government borrowing, increasingly from China, Japan, Britain, Saudi Arabia and other foreign creditors.
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Environment:
The package includes $9.2 billion for environmental projects at the Interior Department and the Environmental Protection Agency. The money would be used to shutter abandoned mines on public lands, to help local governments protect drinking water supplies, and to erect energy-efficient visitor centers at wildlife refuges and national parks.

The Interior Department estimates that its portion of the work would generate about 100,000 jobs over the next two years.

Yet the plan will only make a dent in the backlog of cleanups facing the EPA and the long list of chores at the country's national parks, refuges and other public lands. It would be more like a down payment.

When it comes to national parks, the plan sets aside $735 million for road repairs and maintenance. But that's a fraction of the $9 billion worth of work waiting for funding.
At EPA, the payout is $7.2 billion. The bulk of the money will help local communities and states repair and improve drinking water systems and fund projects that protect bays, rivers and other waterways used as sources of drinking water.

The rest of EPA's cut — $800 million — will be used to clean up leaky gasoline storage tanks and the nation's hazardous waste sites.
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Police:
The stimulus bill includes plenty of green for those wearing blue.
The compromise bill doles out more than $3.7 billion for police programs, much of which is set aside for hiring new officers.

The law allocates $2 billion for the Byrne Justice Assistance Grant, a program that has funded drug task forces and things such as prisoner rehabilitation and after-school programs.
An additional $1 billion is set aside to hire local police under the Community Oriented Policing Services program. The program, known as COPS grants, paid the salaries of many local police officers and was a "modest contributor" to the decline in crime in the 1990s, according to a 2005 government oversight report.

Both programs had all been eliminated during the Bush administration.
The bill also includes $225 million for general criminal justice grants for things such as youth mentoring programs, $225 million for Indian tribe law enforcement, $125 million for police in rural areas, $100 million for victims of crimes, $50 million to fight Internet crimes against children and $40 million in grants for law enforcement along the Mexican border.
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Higher Education:
The maximum Pell Grant, which helps the lowest-income students attend college, would increase from $4,731 currently to $5,350 starting July 1 and $5,550 in 2010-2011. That would cover three-quarters of the average cost of a four-year college. An extra 800,000 students, or about 7 million, would now get Pell funding.

The stimulus also increases the tuition tax credit to $2,500 and makes it 40 percent refundable, so families who don't earn enough to pay income tax could still get up to $1,000 in extra tuition help.

Computer expenses will now be an allowable expense for 529 college savings plans.
The final package cut $6 billion the House wanted to spend to kick-start building projects on college campuses. But parts of the $54 billion state stabilization fund — with $39 billion set aside for education — can be used for modernizing facilities.

There's also an estimated $15 billion for scientific research, much of which will go to universities. Funding for the National Institutes of Health includes $1.5 billion set aside for university research facilities.

Altogether, the package spends an estimated $32 billion on higher education.
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The Poor:
More than 37 million Americans live in poverty, and the vast majority of them are in line for extra help under the giant stimulus package. Millions more could be kept from slipping into poverty by the economic lifeline.

People who get food stamps — 30 million and growing — will get more. People drawing unemployment checks — nearly 5 million and growing — would get an extra $25, and keep those checks coming longer. People who get Supplemental Security Income — 7 million poor Americans who are elderly, blind or disabled — would get one-time extra payments of $250.
Many low-income Americans also are likely to benefit from a trifecta of tax credits: expansions to the existing Child Tax Credit and Earned Income Tax Credit, and a new refundable tax credit for workers. Taken together, the three credits are expected to keep more than 2 million Americans from falling into poverty, including more than 800,000 children, according to the private Center on Budget and Policy Priorities.

The package also includes a $3 billion emergency fund to provide temporary assistance to needy families. In addition, cash-strapped states will get an infusion of $87 billion for Medicaid, the government health program for poor people, and that should help them avoid cutting off benefits to the needy.

By The Associated Press The Associated Press – Sat Feb 14, 6:14 pm ET