Phangarde Realty Blog

Currently, America's finest city has been under wild fires for several days, and the Santa Ana winds were not helping firefighters hold back the flames.  Ironically, this time three years ago, San Diego faced a similar disaster, that struck everyone by surprise.  The destruction of the fire, cost an estimated 2.1 billion dollars.  But the surprising change of events compared to the last wild fire San Diego faced, was the overwhelming leadership from the local agencies, who strategically organized and have been continuosly since Monday, Oct. 22 to get people evacuated, into shelters, provide food water, and any other amenities to comfort people during this distraught time. 

Over 500,000 people have been evacuated at present time, and the current cost of damage is over 1 billion, but the devastion has lasting memories for those in the Cedar fire, over 3 years ago. 

The support of everyone, during this time shows why we San Diegans are America's Finest city.  The support and outpouring of volunteers those not even affected are present in all our evacuation shelters and at Qualcomm.  These are times when we as a community must come together and assist one another to get through these difficult times. 

As with anything, I caution everyone to be careful during this time, since these are also opportune times for looters and identity theft to occur.  Be aware of your surroudings as always.  These are times that we need to look out for one another.  Lend a helping hand to those in need.  Assist the elderly, who need to get around.  Please contact your local evacuation centers, and see if they need any more volunteers or any supplies that you may donate. 

We have placed some important information for many who are displaced or need information regarding the wild fires on our home page.  The pages display websites and phone numbers that may be important for you or someone you know.  Please visit our site regularly during the next few days to see if any new information is present.   

Everyone here at Phangarde Realty would like to send our thoughts and prayers to everyone.  Please be careful and safe, but also be strong for one another. 

For the 2nd time within six weeks, the Federal bank cut its rates from 4.75% to 4.5%.  The rate is what banks charge each other for overnight loans and affects everything from credit cards, auto loans, mortgage loans, and helocs, just to name a few items affected.

The Fed said it cut the interest rate down to maintain and build confidence in an economy that's been slowed housing and financial services industries.

The underlying hope is that such actions, may curb the current trend in the economy, and established some stability for growth to occur.  Again, I believe in part that in order for the housing market to stabilize and correct itself, a few more rate cuts must be in order.  The rate cuts, help consumers with the ability to refinance their existing loans, into something more affordable.  In turn, this will allow consumer confidence to come back, and people will feel at ease in their financial woes.  Even though, something like this will take some time, it will in essence give people the ability to start over, however this time the financial institutions will be much more cautious as to their lending practices. 

This industry has been affected immensely and many changes have come about, which I completely support.  I feel its our professional duty to ensure we provide good service, and help people.  Too often, this industry was not governed and watched as it is now, and the affects have been prevalent.  However, as the market has changed, so has the perception of consumers and their are wiser and know what to look for in a professional. 

Although, the feds cut the rate today, it is our professional duty to ensure that consumers benefit from such actions by the government, otherwise, this would be just another headline in the news, that gets swept under the rug, as it was done before.  Look at the aftermath.    "The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Feds statement on the rate cut said. "Today’s action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time."

This is definitely positive news, in light of all the issues the housing market has faced, hopefully these actions are beneficial and can help some people get back on track.

On October 4, 2007, the National Association of Realtors® praised the U.S. House of Representatives House Ways & Means Committee for the passing of the Mortgage Cancellation Tax Relief Act, H.R. 3648.  This act will now head to the full House for vote.  Realtors, real estate professionals who care about homeownership, once again fought to have their voices heard to advocate for repeal of the current law, which forces individuals to pay an income tax when they have had a loan forgiven or have had to foreclose because of their inability to pay their mortgage.

As our previous article stated with regards to issues concerning Short Sale tax implications.  This new Act, is what our industry and society needs, not as a means to forgive those who took advantage of our market, and now have been caught in the midst of such turmoil, but rather the focus is on how to help and correct something that was outdated for our time.  The loss of homeownership for many was difficult, and to add the tax implications that could arise would only in the long term deter homeownership all together.  But with this new Tax Relief Act, there is hope that homeownership is still something to be excited about. 

The H.R. 3648 Tax Relief Act would ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed.  Realtors® are about building communities, not just selling homes. This is just one step that will help families get on with their lives and begin rebuilding their economic security.

It pays to work with a Realtor, since they are constantly aware of all the legislative issues facing our industry.  As real estate professionals, we strive to better educate people in making the sound decision, less stressful.  Consulting with the right professional takes time, and with the right touch, you can secure your next transaction will be through and no stone unturned for your benefit.