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Twin Cities Real Estate News

Blog by john mazzara
Edina, Minnesota

Let's talk about the Twin Cities Real Estate Market. I will post helpful links and answer questions about real estate or mortgages. I live and work in Minnesota, so some of my ideas may focus specifically on Minnesota real estate or mortgage regulations applicable to our state.

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Twin Cities Real Estate News

"Cram Down" The Wrong Solution To Our Foreclosure Crisis

Feb. 25, 2008

Then senate is going to have an accelerated hearing on this Tuesday.  The ramifications for our industry are huge.

A cram down is where a judge can literally "cram down" new terms on an existing mortgage.  The investor or owner of the mortgage has to live with it.  The bankruptcy judge can force this upon the investor. During the Saving and Loan crisis of 1990 and 1991 this was done with some commercial loans in various parts of the country.  The bankruptcy cram down bill S2636 is being put forth by Democrat Harry Reid.

I have to write this today to warn us all about the repercussions of America's willingness of not allowing people to fail.  It is with much dismay and consternation that I see bills like this being proposed in congress that allow judges to determine the interest rate and repayment amount on a mortgage.  This is simply WRONG.  I don't want anybody to lose their house.  At the same time, a contract was made between and investor and borrower.  That contract has remedies for non payment.  If the lender wants to do their own modification to the note, let it be their decision.  If they want to take the property back in foreclosure, let it be their decision. 

Put yourself in the shoes of the lender or investor.  If any bankruptcy judge could modify a mortgage note and deprive you of your rights as an investor, would you EVER buy or invest in a pool of mortgages again?  The answer is NO you wouldn't.  If the investors completely leave the mortgage market, rates will need to rise to attract them back, and high loan to value mortgages will become non existent.  This will worsen the housing crisis because the cost for everyone will be higher and options will be fewer.

We need more mortgage programs, not less.  We can't deprive the investors of their rights.  Remember there is plenty of blame to go around in this mortgage foreclosure crisis mess of today.  It is easy to pass the buck and blame the investors and banks as that relieves people of any personal responsibility.  

We must let the free market work.  If we change the rules during game, we have a new game, and nobody will play in that game.  The recent Mortgage Debt Forgiveness Act was supposed to help people work out payment solutions with their lender and not incur a 1099c for debt relief.  Instead, I have witnessed in the last week alone, four individuals make the decision to go into foreclosure and live 6 months free during their redemption period.  Instead of stem foreclosures, it actually encourages it by making it penalty free. 

Visit our online Twin Cities real estate site at http://www.selling.mn and our Minnesota mortgage site at http://www.ventureloanapp.com

Expand The Free Line With Your Own Squidoo Lens

Feb. 20, 2008

Have you heard of Seth Godin? 

Here is Seth's description of himself from his website-copied verbatim:

SETH GODIN is a bestselling author, entrepreneur and agent of change.

Godin is author of ten books that have been bestsellers around the world. His most recent titles include The Dip and Meatball Sundae. Free Prize Inside was published in early May, 2004 and All Marketers Are Liars was published in 2005. His books that have been bestsellers around the world and changed the way people think about marketing, change and work. Permission Marketing was an Amazon.com Top 100 bestseller for a year, a Fortune Best Business Book and it spent four months on the Business Week bestseller list. It also appeared on the New York Times business book bestseller list.

Unleashing the Ideavirus is the most popular ebook ever written. More than 1,000,000 people downloaded the digital version of this book about how ideas spread. Featured in USA Today, The New York Times, The Industry Standard and Wired Online, Ideavirus hit #4 on the Amazon Japan bestseller list, and #5 in the USA.

The Big Red Fez, Godin's take on web design, was the #1 ebook (worldwide) on Amazon for almost a year before it was published in paperback in 2002. The Miami Herald called it one of the best business books of the year.

Survival is Not Enough has made bestseller lists in Germany, the UK and the United States. With a foreword by Charles Darwin, this breakthrough book redefines what change means to anyone who works for a living. Tom Peters called it a, "landmark." The book was first excerpted in Fast Company, where Godin is a contributing editor.

His latest book, Purple Cow, was a New York Times and Wall Street Journal bestseller. It's all about how companies can transform themselves by becoming remarkable.

Seth is a renowned speaker as well. He was recently chosen as one of 21 Speakers for the Next Century by Successful Meetings and is consistently rated among the very best speakers by the audiences he addresses.

Seth was founder and CEO of Yoyodyne, the industry's leading interactive direct marketing company, which Yahoo! acquired in late 1998.

He holds an MBA from Stanford, and was called "the Ultimate Entrepreneur for the Information Age" by Business Week.

He's the man behind the Squidoo Lens.  If you go to www.squidoo.com  you can build out a mini expert page.  The pages are FREE to build.  There is no hosting fee and they are indexed and ranked in the search engines.  If you are looking for back links and a quick way to attain expert status for various keywords, then you should head over to Squidoo and spend an hour to build a lens.  There are no limit-other than your time-on the number of lens that you can build.  Build your lens and Shout Out to the world where you are an expert.

I live and work in Minnesota.  As such, my area of expertise is the Twin Cities- Minneapolis St Paul area and surrounding suburbs.  I've built two lens.  One is Minnesota Real Estate and the other is Twin Cities Real Estate.  Check them out.  This is a free resource that many internet marketers use. 

Real Estate: The Best Investment You'll Ever Make

Feb. 10, 2008

new construction in minnesota"The housing market is falling apart! This is a horrible time to buy a home, or sell a home or even LIVE in a home!"

Have you been hearing a lot of news that sounds like this lately? Well, economists love, and I mean LOVE, to spread the gloom and doom. When the economy's going great, they don't get any attention. But as soon as the market changes, everybody's listening to them again. So, when you hear all that bad news, keep in mind that it sells newspapers.

That's certainly not to say the market hasn't changed. It is still changing, in fact. But that makes investing in real estate all the more enticing, if you know what you are doing.

But here's the skinny on investing in real estate. It is one of the best decisions you'll ever make. And guess what? I'm here to tell you that this is actually a GREAT time to buy.

There are very few purchases you will ever make in your life that will actually increase in value while you are using them every day. These are called INVESTMENTS, and anyone that knows anything about investments will tell you that good investors are in it for the long haul.

If you are thinking about investing in real estate in the current market, as long as you choose a property that is worthwhile and maintain it well, it will reward you with plenty of equity over the years. If you are a foolish investor that just wants to get in and out and turn a quick profit, this likely isn't the best market for you.

But if you are thinking of investing in real estate the smart way, using pragmatism and patience, this is a great time to buy. Prices have fallen on homes, and so have interest rates. So, you can lock in a mortgage at a fantastic rate and save money on your purchase price.

Prices will inevitably rise back up, and you'll be sitting pretty with a great interest rate and extra profit from your amazingly discounted price. Since sellers often have had their homes on the market for longer than they've wanted to, they may be willing to cut you a deal. That's all the better for you, and they will finally be able to get on with their lives. Everybody wins, especially your pocketbook.

If you are looking to buy a fixer-upper to rent out as an income property, this economy will benefit you, too. Because lenders are leery nowadays about handing out home loans to people with bad credit, and many people have lost their homes because their adjustable-rate mortgages went through the roof (literally), a surplus of renters is soon to hit the streets.

Just don't be overly eager to flip your investment property. If that's your intention, it might take some time before it sells in this market. But by all means, rent it out.

The economy might be cyclical, but history teaches us that investing in real estate is nearly always a great decision for the long term. Despite what the media tells you, today is no exception to the rule.

 Visit http://www.selling.mn and begin your home search NOW