Margie OCampo de Castillo

In a perfect world the folks in Washington would be writing a bailout plan that REQUIRED banks to lower and fix adjustable rates and renegotiate mortgages so the homeowner could avoid losing their home. If the Banks don’t want to write all the loans off they could put a silent second that provides for the bank to be paid back the silent second if & when the homeowner sells and has proceeds over and above the silent second. This model would not work for everyone facing foreclosure, so other homeowners, the banks could do a five year lease with option to buy. Think of the positive impact this would have on neighborhoods facing the blight and crime of abandoned homes today! Instead we have the very picture of lifeguards rescuing the sharks while people are left bleeding and dying in the water. Doesn’t this “hurry up and approve this Emergency Bailout” rhetoric remind you of the “we must go to war because there are weapons of mass destruction...” line we fell for? If this bailout plan passes know for certain that “We the People”, have been sold out! As individuals we can never compete with the deep campaign contributing pockets of the special interest groups, but come time to vote we can sound out and clean house. The sell-outs will no doubt stand out notably and we should not forget who they are. Let's take our privilege to vote and seriously consider replacing the old guard with folks who respect and hold sacred their pledge to serve "We the People".

EZ Money I wonder what would happen if turning 16 was the ONLY requirement for obtaining a Driver’s License. Forget having to learn anything about the laws and rules of driving safely, just go head on and drive away the minute you turned 16. Seems ridiculous but that’s how I interpret the EZ Money loans that were freely handed out and are just now being scrutinized after being hit by the foreclosure tsunamis and the onslaught of wrecked lives, families and financial institutions in their trails. Maybe there was a reason our forefathers felt so strongly in not giving a child everything, lest it grow up to appreciate nothing. You think? EZ Money loans: Considering that other countries require a hefty down payment to obtain a loan which comes with a similarly hefty interest rate, we Americans have not begun to appreciate and value the types of loans we have been afforded. When I began my real estate career in the early 80’s, lenders required a down payment and full documentation. Back then the EZ Money loan was a full doc FHA 3% down. A loan product created to help increase homeownership and the middle class. Compare that to the subprime loans responsible for the birth of the MEGA disaster now shaking the economy on a global level! If increasing homeownership and the middle class was the reason, the solution was extremely reckless. It is fair to say that the EZ Money solution was worse than the problem it tried to solve in the first place. What happened to the value and priority folks placed on homeownership? The EZ Credit and EZ Money mentality blinded our country with excess and dulled what little common sense we had to begin with. Our forefathers believed in budgeting and saving up for things that were truly necessary, while our generation places little value on the basic needs and carelessly spends money we do not have on mere luxuries to impress and keep up with what we see on TV. I am in the American Dream business, but as a REALTOR® I am the first to say that EZ Money and EZ Credit loans are not the way. We need to increase homeownership responsibly and financial literacy education is paramount. In a perfect world it would be taught in schools, but the main responsibility falls on us to teach those around us, starting with our children. What good is handing out loans for the privilege of homeownership if the recipient does not comprehend its value? EZ come, EZ go.

If the bill Bush signs allows financially troubled homeowners to refinance into fixed-rate loans so they can afford to stay in homes that have gravely depreciated in value vs. having them walk away, it will help....but something still smells bad, in my oppinion. • Lenders already have the power to change the terms of a loan. Why then are they dragging their feet with many homeowners? to Why are lenders dragging their feet and not doing this already? • Based on the experiences of several clients, it appears the guidelines Lenders are using to determine who is foreclosed on and who gets a loan modification are skewed. o One client with perfect credit and timely payments calls Lender to say work is slow and income is suffering to a degree they feel they may not be able to make their payments in the future. They want to have their original teaser rate fixed as this payment is one they can afford to continue making. They are told that they can only help folks who are already behind. If it were my money, I would put it on the this guy as he has proven that he pays on time vs. someone whose credit reveals irresponsible purchases and lack of discipline when it comes to payment history. o I know Lenders are not in the business of being Landlords, but it makes more sense to me to lease these properties out to the occupants at a discounted amount vs. having 20+ foreclosed homes in a neighborhood. I know….It’s never been done before, but when have we been down this particular road before? My concern is that despite good intentions with these stimulus programs, we may be creating false consumer confidence which can produce a bubble in itself. We Americans are innately optimistic, never wanting to alarm the nation and cause panic. But this is a "perfect storm" if there ever was one! There's a laundry list of components feeding on one another & continuing to breed additional debilitating blows to our economy. The housing package will help some, but in my opinion, when money is tight it has to be spent wisely by identifying and fixing the problem vs. throwing our money on treating the symptoms. We shouldn't kid ourselves. Housing is just one failing pillar of our economy and I'm not sure we the tax payers have enough money to fix our Housing Crisis. The "perfect storm" is being felt worldwide. Here at home we are weathering one wave after another. We hear unemployment is nearing 5%; the money supply is tight (the so called credit crunch); credit is hard to get; giants like Freddie Mac and Fannie Mae are falling; assets are depreciating; the cost of basic necessities & staples is rising; in contrast, wages are NOT rising; consumer confidence is at an all time low; the cost of gasoline at record highs and climbing; little to no economic growth; the Dollar is losing its value; a record number of businesses large and small close their doors as they no longer can afford to stay open; chains closing their shops and malls feeling the pinch; record foreclosures and more to come; relentless Mother Nature at work worldwide; global warming threatening the world as we know it; the cost of war bankrupting our nation; the price we are paying for the lack of immigration reform laws....... be my guest and add a few of your own. Can anyone remember when any country has weathered this myriad of challenges? As a REALTOR it may not be popular to say that Homeownership is not for everyone but every homeowner can agree that Homeownership should be entered into with a great respect for the responsibility that comes with it and it’s imperative that we arm ourselves with the understanding/knowledge of the financial commitment required to sustain that property besides just making the monthly mortgage payment. In light of the horrific amount of homeowners being foreclosed on, it is fair to say that the EZ Money solution was worse than the problem it tried to solve in the first place; increasing homeownership. What happened to the value and priority folks placed on homeownership? The EZ Credit and EZ Money mentality blinded our country with excess and dulled what little common sense we had to begin with. Our forefathers believed in budgeting and saving up for things that were truly necessary, while we place so little value on the basic needs and carelessly spend on mere luxuries. I am in the American Dream business, but as a REALTOR® I am the first to say that EZ Money and EZ Credit loans are not the way. We need to increase homeownership responsibly and financial literacy education is paramount. In a perfect world it would be taught in schools, but the main responsibility falls on us to teach those around us, starting with our children. What good is handing out loans for the privilege of homeownership if the recipient does not comprehend its value? EZ come, EZ go. The compounding effects of this storm are crippling our economy in such a way one can only wonder how and when we will recover.