[DeTomaso] NPC: REALLY NO PANTERA CONTENT, US Auto Industry Bailout OPINION

Peter Kovacs peter-kovacs at sbcglobal.net
Mon Dec 8 23:12:29 EST 2008


Mad Dog,

Blame is a real balancing act. I certainly benefited from the previous strong economy as a homeowner, investment property owner ,401k investor, resident of a community with a growing economy, and in my career. While subprime loans and options arms were available through the company I worked for, I only did a few of them  and only after explaining the benefits and consequences of the program and never if there was a better alternative. Most of my customers chose other products that provided more stability or went to other lenders who were more excited about providing the requested 'low' payment program. A few of my sophisticated customers still wanted option arms. They worked very well for some and not so well for others but they knew what they were getting in to and the risks they were taking. Over the years, a few borrowers chose the subprime 2/28s. They worked well for some who sold or refinanced out later and for very few, the combination of
 factors did not exist for a successful exit. I advised them at the beginning of what was needed for that, so no surprises there either. 

The challenge for me was that if I properly informed a customer about  program, they were eligible for that program, and they applied for that program I would be in violation for not providing that program. I would often state,' I wouldn't suggest this to my friends and family'. Some would listen, and choose a more responsible approach. Most would thank me for my time, go down the street and get the loan elsewhere. I would share my thoughts and concerns with the newspaper, city council etc. My office and I put on workshops as a volunteer at the library just to help people understand the loans they already had. City Council looked at me with their tired faces and said ' good thoughts, meeting adjourned. ' Very few people showed up to understand the loans they had. No one paid attention except the one reporter that came back after things changed and said 'you were right'. It was a pretty sad day considering what I was right about. 

Since then,  I have spent many days, weekends and evenings volunteering at foreclosure prevention workshops and speaking at town hall meetings, churches and senior centers. I even attended a congressional field hearing regarding this issue and submitted testimony to it. I'd be happy to include my testimony but this email is long enough. It is frustrating when people ignore information that is available then cry foul later saying 'why didn't someone tell me this could happen?'

Since then, my equity in my home has evaporated as it has with my investment properties and 401k. My community and surrounding communities have significantly deteriorated. My income has greatly diminished. This part of the cycle will pass also. There are incredible opportunities out there and the market has a short memory.

Despite what the media puts out there, business is now booming. Homes are being sold for 'less than they are worth'. Multiple offers on most listings. The pendulum has swung the other way. Housing prices are very low in relation to the areas earnings. Plenty of demand from investors, and even modest single income households that never could have dreamed of buying a few years ago. Because of the national news, the supply keeps coming because there is no longer an incentive to keep paying on the part the the people who owe more than their home is currently worth. Homes previously sold for $729,000 now are selling in the mid $200's if you can beat out the other offers. You can now buy houses for cheaper than you can build them. Builders are bankrupt or sidelined....and they can build a house overnight. We are already creating our next housing shortage. Keep watching, we are witnessing a huge redistribution of wealth.

Hopefully you don't find yourself on the wrong end of that redistribution once the dust settles. Take some of the Millions you have left over from the ORR bet and buy some property. There are still loans out there for the qualified buyers, but now qualifications are a requirement.

If you think this letter was long, you should see my letter to congress.


Peter Kovacs
Property Equity & Mortgage Mgmt
209 345-6708 
209 523-4919 fx




________________________________
From: Mad Dog Antenucci <teampantera at yahoo.com>
To: michael frazier <red3644 at hotmail.com>; michael at michaelshortt.com; notstock at yahoo.com
Cc: kenn_green at yahoo.com; asajay at asajay.com; pantera list <detomaso at realbig.com>
Sent: Monday, December 8, 2008 2:18:07 PM
Subject: Re: [DeTomaso] NPC: REALLY NO PANTERA CONTENT, US Auto Industry Bailout OPINION

Your EXACTLY right on Michael...

I was reminded off line that my rants sound good but we are all guilty to some degree of greed.....

none of us COF's are going to sell our homes what they are really worth...thats assuming we could find a qualified buyer! And if the home prices keep falling (Peter we blame you for this) we may end up selling our homes for REALLY what they are worth!!!
HAH........okay glad I am finally finding the humor in this situation

Sorry for the earlier rants.

Dawg, back in his cage

michael frazier <red3644 at hotmail.com> wrote: 
*"GM, which is now committed to making car consumers want to buy "*

I think that was the problem all along.  We wanted to buy 9 passenger 4 wheel drives.  How can you survive without one?
The condition of American roads and mall parking lots make them essential...not to mention the nearly constant off road use 
these vehicles see daily.  If you make "lighter and more fuel efficient look "Cool", then we'll need those too.  They built exactly
what we wanted.
Michael
Big Bend ORR  April 2009!
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Mad Dawg Antenucci 
Team Pantera Racing 
  The 1st & still the only vintage race team in open road racing 
www.teampanteraracing.com
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