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Tom Crowe
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    CRS: Certified Residential Specialist
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Archive for February 2009

Details on Mortgage Loans

Thursday, February 19th, 2009

Details are just starting to come out about the latest economic stimulus plan. I for one, certainly hope that it works and gets our economy back on track. What bothers me most is who it is going to fall on to pay for. To date the total package is adding up to about 1.5 trillion dollars.

I am hearing about another 50 billion for housing (I thought the first 700 billion was suppose to do something for housing) and the new Secretary of the Treasury has talked about another 2 trillion dollars. If these two items come to fruition then the total package will be in the neighborhood of 3.5 trillion dollars. I’m not sure, but I think a trillion dollars is 100,000 billion. What is the thought of how and who is going to pay for it. Especially if the stimulus plan does not work as it is intended.

Another thing that bothers me is why is there no plan for the banks and the insurance companies to pay back the money that was given to them? No restrictions were put on the banks and insurance companies as to how they were receive the money or how they were to use it, especially in Allen Park. Where were the questions by congress on how this money was to be used or a requirement that they provide a business plan on how there use of the money would make them once again solvent?

I remember the savings and mortgage loan scandal of the eighties. At that time it was mostly commercial mortgage loans that were in question and appraisers had to become licensed as a consequence. Mortgage loans were made on buildings then, even if fully occupied they would not cover the debt service on the mortgage loan. I could be wrong, but I do not believe anyone went to jail, but I do know that the American Tax Payer paid the bill and we are doing it again. And our children and their children’s children are going to pay for it.

I can only urge whoever reads this and agrees with the questions that I have asked do as I am going to do and write my Allen Park congress person and ask for honest and legitimate answers. I welcome your thoughts.

Are Sellers Having Trouble Making Decisions About Their House?

Friday, February 13th, 2009

Having trouble making decisions about your house?  I recently talked to a neighbor of mine that winters in Florida.  They have been retired here in Michigan for the past seven years and have decided to make Florida their primary residence.  In the past they would winter in Florida and have Michigan as their permanent residence.

Everybody thinks Michigan has the worst economy in the nation, but as luck would have it, (that may be a pun) Florida could be in  worse condition.  They told me that values were down nearly 50% and that homes that were selling for $300,000 could be had for $150,000 or less.

Number one, that tells me that things are not as bad here in Allen Park as we think and that our recovery may not be as long as we think.  Florida is primarily a vacation destination…think about it, if we can not afford to take vacations then they will not have our dollars to fund there economy.  As we restructure our economy, don’t forget, Hollywood is near to coming to Allen Park; our jobs will be working to improve the economy in Florida.   Warm and sunny days are on the horizon.

Time To Be Grateful in Allen Park

Wednesday, February 4th, 2009

It’s a time that could be spent complaining about the economy and a host of “what use to be’s”, “why me’s” or casting the blame on whoever it was that didn’t see it coming.  The fact is our community in Allen Park has to deal with it.  Economist talk about the pitfalls of a “self prophesying prophesy” and how this attitude will add to the problem (I personally have chosen not to read the newspapers or listen to that part of the television news that deals with the problems of the economy).

I think a better direction is to look at the opportunities that exist now in our community of Allen Park, but would not have appeared if the status quo had stayed the same and to look at what is good about our community and our region.

Our community, our residents, through necessity and through innovation have taken steps in the recent past to adapt to the changes in our work lives that we are all experiencing now and it was done without our current circumstances in mind.

What do we have to be grateful for?  Allen Park’s school system is considered one of the best in the region and recent updates in buildings and curriculum will go a long way in filling the jobs of the future. Baker College moved facilities into Allen Park and is making education convenient and affordable.  The Allen Park Downtown Development Authority is making improvements to our small business community and creating opportunities for other businesses to move to our community of Allen Park.  We have an expanded Civic Center that is the home of our recreation department and provides increased services to the community.  Allen Park’s city council, as recently disclosed in the community, has been working to develop new employment opportunities in the movie industry, and let’s not forget the Detroit Automobile Salon that currently occupies space on Southfield Rd.

Allen Park is also a community with service organizations.  I happen to belong to the Allen Park Rotary.  Just prior to Christmas, we asked our local elementary school students to donate slightly used or new toys to be distributed to those in need.  The response was overwhelming and appreciated by the distribution centers that made the donations available to those families in need.

While most local communities are experiencing large inventories of foreclosed homes, Allen Park is at the bottom of the list and is one of the best selling cities downriver.  While prices have declined across the board some 30 to 40 percent in our community, Allen Park homes are moving if they are priced correctly.  During the last six months of 2008 Allen Park experienced 101 closed residential communities.  This is in comparison to 106 during the same period in 2007 and 135 in 2006.

The truth of the matter is these are tough times…times only historians can relate to.  But there are also many things to be grateful for.

Relocating

Tuesday, February 3rd, 2009

Having trouble making decisions about relocating to a different city?  I recently talked to a neighbor of mine that relocated their winters in Florida.  They have been retired here in Allen Park for the past seven years and have decided to relocate to Florida and make it their primary residence.  In the past they would winter in Florida and have Allen Park as their permanent residence.

Everybody thinks Allen Park has the worst economy in the nation, but Florida could be in  worse condition.  They told me that values were down nearly 50% and that homes that were selling for $300,000 could be had for $150,000 or less. Number one, that tells me that relocating to Allen Park isn’t that bad and that our recovery may not be as long as we think.

Florida is primarily a vacation destination…think about it, if we can not afford to take vacations then they will not have our dollars to fund there economy.  As we restructure our economy, don’t forget, Hollywood is near to coming to Allen Park; our jobs will be working to improve the economy in Florida. Warm and sunny days are on the horizon.

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