Negative Media Has a Stronghold
8:17 pm in housing market, increasing value to home by Danny Thornton
Earlier today I left a comment on the last article that was written on PREP called Common Myths and Misconceptions about FHA Loans. First, let me say that I was glad to see some conversing going on and I want to thank those that do comment. With that said, today, I am going to step out of my normal trend of talking about the positive aspects of the Real Estate and Mortgage industries to tackle the subject of negative media and the grip that it has on the public. I told them that I would finish answering their question in this new article.
Today, I was reading an article from a blogger that also discusses the mortgage industry. I was shocked to read that he was telling his readers in a nutshell that it takes a 740 credit score and at least 80% equity in a property for someone to get the lowest rates on the market. So, in essence, he wants you to believe that unless you have these scores and loan to value, you will not get 4.5% if that is the lowest rate on the market. While that may be true in essence, it misses the target. While you might not get the “lowest rate in the market, you might get very close with less credit score and a higher loan to value. Each loan is different.
So, let’s get back on subject here. I ran into this article in the social media world. I was amazed at how many people had thumbed up this particular article. Whether people realize it or not, when you thumb up an article in social media, it is basically making the statement that you agree with that particular article and the context in there. With that being said, this was the first time that I have realized that the negative media has its claws into the consumers so deep that they actually believe the garbage that is being feed to them. That is one of the reasons were are in the position we are in now, people didn’t do the necessary research.
In this particular article they blame most failed applications on the appraised value of the property not coming in. They blame that on the foreclosures and all the short sales that are going on. There is no way to combat the drop in appraised value, however, we need to realize we are part of the problem. During falling Real Estate times, the buyers begin to act like vultures. When someone starts drowning, they start circling. When the person has reached the last rung on the rope, the vulture pushes them just a little more. In this mentality, values of properties will continue to fall until people start resisting. This feeds into the negative media and just strengthens the stronghold that they have already obtained.
Now, what these same people do not realize is that the very property that they bought today can go down in price if other people do the same thing that they did. Or, even worse, let’s say that they bought an investment property and they are not really concerned with value at this point. But, in the neighborhood that they live in, the house next to them sells in a foreclosure and one just at the end of the street is a short sale, their house will also suffer in value. In principle, the same method that they used to buy the investment property is also the same method that caused them to lose equity in their primary residence.
So, in closing, let me say this. You have to be careful what you listen to and wish for. In the end, it can be what eats you up. The reason you buy a home primarily is to have a place to live. Shelter is one of the basic human needs. Consider what this means when you are looking at houses, will this fit your needs? Waiting until the last rung on the ladder will probably mean you missed it. No one knows where the bottom is until it on past.
If you have questions or need advice, please feel free to ask. If Rich or myself cannot answer it, we will find someone that can give an accurate answer. Having someone in the business that will work for your best interest is very important.
stated in a recent blog, Bob Briscoe, Eugene Planning and Development Department, announced to our Town Hall meeting that Eugene had recently received over $600,000 and Springfield over $300,000 under this program. The program is for owner occupied or non profit purchases only.
about the use of the funds will be for owner occupied purchases in targeted areas in both cities. 25% of the funds must be used for very low income housing and will probably be done through some of the non-profit organizations such as 


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