Julia Roberts Realtor in Lake Havasu

I like the simple, easy read to the economy of the world. The Tea Leaf by Jeff Thredgold is my favorite way to stay in tune with what is going on globally. I would like to share another of this brilliant writings.

Respectfully,

Julia Roberts

Global ABCs

By Jeff Thredgold

I remember purchasing  a home back in the 80′s. We could afford the payment and that was really all that mattered. However the interest rate on that loan was 12% !!  Holy cow! Now days the interest rates are as low as ever. The BEST time to buy a home. Below is a 30 Year Fixed Interest Rate Trend. Looking at the chart I guess I should be happy that we only paid 12%.

 So looking at this, it’s time to buy NOW!!!

Julia Roberts

Are you a movie buff? Do you know your movie trivia? Well I really love this mans use of  movie titles to explain the economy of the world. Hope you enjoy it too!

The Movie Piece

By Jeff Thredgold

27 December 2011, 12:12 pm

During the year I receive a newsletter from Jeff Thredgold. I love this guy. He has an interesting way of presenting the economy. He gives a little humor with the bad news and pokes fun at everything!

I have included his latest post.

Enjoy!

Julia

Tea Leaf by Jeff Thredgold

The U.S. Economy

What we now call the Great Recession officially began in December 2007 and ended in June 2009.  It was the longest, the deepest, and the most painful recession since the Great Depression.

By my count, that suggests that the current U.S. economic expansion is now reaching the two-and-a-half year mark.  The current expansion has been less than satisfying both statistically and emotionally, with major headwinds still in play involving weak residential and commercial real estate markets, uncomfortably high unemployment, major European financial risk, and elevated levels of anxiety about the direction of the federal government.

The current U.S. economic expansion has been especially lackluster when considering the massive and unprecedented levels of both fiscal and monetary stimulus.  While modest economic growth has returned, a “recession of confidence” remains center stage.

Economic growth in the new year about to unfold is likely to remain substandard, with most forecasts congregating around a 1.5%-2.5% real (inflation adjusted) rate of growth.  More bearish forecasters see particularly anemic growth in 2012’s first half.

The size and scope of a possible European financial implosion could lead the U.S. and much of the world back into recession, although that is not the consensus view.  Nevertheless, investors around the globe have taken a “shoot first, ask questions later” approach to European sovereign (national) debt markets and the contagion that has now spread to more and more members of the euro community.

Government

Political theater of the absurd has been commonplace in the nation’s capital, with extreme partisan politics today’s reality.  The government’s ability to live within its means remains highly elusive, even as European developments should be sending strong signals to Washington DC about damaging annual budget deficits and a more than $15,000,000,000,000 gross national debt.

Various economic studies have suggested that any nation’s ability to prosper and grow at a satisfactory pace is endangered when its gross national debt reaches 90% of that nation’s annual economic output.  We are now at 100%…and rising quickly.

Trillion dollar plus budget deficits of the past three fiscal years will continue for as far as the eye can see.  The biggest threat to this nation is the financial cancer of irresponsible government deficits.  As noted frequently, the need to slow the future growth pace of entitlement programs is mandatory.

2012 Elections

Already tired of the political battles underway?  Just think…only 342 days until Election Day!  The failure of the “super committee” was the latest in government missteps.  An emotional national debate about 1) the size and growth pace of the federal government, and 2) who pays for it will be one key element of political discussion during most of 2012.

U.S. Employment

Wary business leaders and worried consumers have contributed to the weak level of American job creation during the current economic recovery.  The nation has regained only one-fourth of the eight million jobs lost during the crisis of 2008 and 2009.  Unless and until confidence levels improve, weak additions to employment will continue.

The nation’s unemployment rate has averaged 9.0% for the past three years. Most forecasters see an unemployment rate of not less than 8.5% by the end of 2012.

To read the entire article, CLICK here.

Is there life after a Short Sale? The answer is YES! Like everything else in life it just takes a little time to heal.

I think this is a really great  article about life after short sales. So many people have been affected by the times. But we all want the” American Dream” , to own our home.

Hope you enjoy,

Julia

3 Options For Home Buying After Short Sale

By Tara-Nicholle Nelson
Inman News™

Q: I experienced a hardship two years ago and had to sell my house via short sale. I am now ready to purchase a home but heard I would have to wait another year because of FHA rules. I have been paying my rent on time and my credit is in the 700s. What programs or other options do I have in terms of obtaining a loan? I want to purchase a house for $70,000. –T. Jordan

A: I’m glad to hear that your hardship has passed, and that you’ve been able to get your finances back in shape. Whoever you’ve spoken to is correct: There is a three-year waiting period after a short sale before you can qualify for an FHA loan on a new home. As I see it, though, you have three clear options:

1. Wait a year. The fact is, time flies — and you’re only 12 months away from the expiration of the FHA waiting period. Frankly, there are so many homes on the market right now, including an enormous percentage of distressed properties with condition problems and such, that between getting their own financial ducks in a row and house hunting, it is taking many homebuyers more than a year from the time they get started to get into contract, even without any waiting period.

Unless you have an uber-urgent reason to move or are very flush with cash (see No. 2, below), my advice is to wait the year. In the meantime, pay your bills on time — every time — and work with your mortgage and real estate brokers to make sure all your other financial ducks are in a row so there are no surprises when your waiting period is up.

2. Get a non-FHA loan. FHA is popular — especially among those who only have the cash to make the FHA minimum 3.5 percent down payment — but it’s not the only game in town. The vast majority of conventional (non-FHA) loans available from mainstream lenders are insured by Fannie Mae and Freddie Mac.

Both these agencies impose a shorter, two-year, post-short-sale waiting period, as long as the borrower is coming in with a 20 percent down payment. If you wait an additional two years, the minimum down payment requirement comes down to 10 percent, but by then you will qualify for the 3.5 percent FHA mortgage.

3. Plead the case of extenuating circumstances. FHA guidelines do make an exception for the three-year, post-short-sale waiting period for former homeowners/wannabe borrowers who can document that they were forced to do the short sale by extenuating circumstances. The most common fact scenarios that fit the bill are a job transfer to another area (not job loss) or a natural disaster that affected the property (e.g., fire, flood, etc.).

Beyond that, whether a “hardship,” to use your terminology, rises to the level of an extenuating circumstance for purposes of qualifying for an FHA loan is up to the discretion of the lender, but things like a job loss, the adjustment of a mortgage or the decline of the home’s market value do not count.

If you had, say, an accident or illness that resulted in a temporary disability, it might be worth the effort to plead your case. Speak with your mortgage professional about whether you can make a credible argument in favor of shortening your waiting period.

To read the entire article click HERE

The buzz in the industry currently is the  ”HARP” or Home Affordable Refinance Program for those borrowers who are or may be upside down with their mortgage. If your mortgage is owned by Fannie Mae or Freddie Mac you may be eligible to now complete a new mortgage with a lower rate or a more secure rate (ARM to Fixed) or even a shorter loan term. To verify if your mortgage is owned by one of these entities please visit either:

www.freddiemac.com/mymortgage OR

http://www.fanniemae.com/loanlookup

Be sure to print off the results of the one who owns your mortgage,you’ll need it to complete your new loan.

Right now this what I know:

The primary modification to the program is at this time those borrowers who’s first mortgage is less than or equal to 125% of your homes value will be eligible to refinance .

This is just the start of this government program and there are still lots and lots of questions.  I will try to keep you posted as I learn more!!

Until next time!

Julia

I have a vinyl in-ground pool at my home.  There is always a lot of debate regarding vinyl vs. fiberglass vs. gunite pools. We have owned this home for 23 years. The original pool was put in back in 1984. It lasted about 10 years before we had to replace the liner. The second liner lasted about 8 years. So again we replaced it. The cost is around $3000. And you end up with a new color and not a lot of expense. The last liner didn’t do so good. It only lasted about 6 years.  However that liner may have had some extenuating circumstances that created the problems.

Anyway I found a local pool company to do the work so I thought I would show you the process. First they take the old liner out. Then put in a new liner and fill! It’s that easy. Here’s my pictures.

So now I have a beautiful blue pool in my back yard!

Julia