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Congress wants to put the American Dream out of Reach for most people!Take Action!

Posted on May 24, 2011 by in Active Rain | 0 comments

Congress wants to put the American Dream out of Reach for most people!Take Action!

First I would like to give you my position with a little background: I am all for responsible lending, buying and keeping deadbeats and cheats out of home ownership. When my parents bought their home they had to put down 20 per cent and we had to pool our resources to make it happen. The house was $42,500.00 and my mother sold some of her jewelry, as my father sold his coin collection and I took a job during the summer and gave my first semester College money to make it work.

The Facts:  Congress wants my clients, your clients to put down 20% as the down payment. The average two bedroom condominium in Marina Del Rey is $509,000.00 I took out the luxury and high end condominium for this calculation. This is strictly based on the last month’s sold numbers. I did not include ocean view condominiums, rather your basic bread and butter two bedroom condominium one would buy without having extravagant taste.

Let’s Do the Numbers: $509,000.00 sales price with 20% down payment is $101.800.00 plus 3% closing costs is $15,270.00. Now that is a total of $117,070.00, which a buyer would need to purchase this Condominium. How many average Middle Class families have this type of Cash in their Savings Accounts? I sure do not, do you?

The National Association of Realtors (NAR) did some research on this very question. 60% of recent home buyers made less than the 20% down payment to buy a median-priced home. They also discovered that it would take about 14 years for a typical person to save up a 20% down payment.

Now with that said if the new regulation governing Qualified Residential Mortgages (QRM) takes effect this year, then basically 60% less people will be buying homes. What will that do to the fragile economy?

Not only Realtors, but the entire country will be affected by this bad Regulation. Please contact your Congress Person today if you are a buyer, seller or future buyer or seller of Real Estate. Tell a Friend, Take action. This will affect everyone in some form or another.

If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.  

 

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