$700 Billion Wall Street Bailout

September 23rd, 2008

 Today, several financial leaders are meeting with the Senate’s banking committee to discuss the $700 billion bailout of Wall Street that is being proposed to congress.  Federal Reserve Chairman Ben Bernanke, U.S Treasury Secretary Henry Paulson, Securities and Exchange Commission (SEC) Chairman Christopher Cox and the Director of the Federal Housing Finance Agency James Lockhart are appearing before the committee to lay out their plan and to answer the committee’s tough questions. 

Led by Sen. Chris Dodd, the committee has taken turns scrutinizing the plan, trying to get a grip on what effect it would have on the economy and taxpayers money.  The plan would essentially let financial companies of all sizes take toxic securities off of their books.  This would help their balance sheets and relieve the strain on many companies that are struggling to survive.  As a result banks should be able to lend more money and possibly loosen up their standards.  These experts hope that this will also cause private investors to start pumping money back in to these companies. 

The proposed bill is only thee pages long but includes a tremendously large amount of taxpayers money.  At this point Paulson and Bernanke have been vague about the specifics.  The reason is due to the enormous complexity of these securities.  They do stress that this must be done very soon. 

A large concern from the committee is that this plan does not include any legislation about helping homeowners facing foreclosure stay in their homes.  Paulson and Bernanke believe that this plan will help homeowners, although right now there is no direct legislation indicating this help.  In other words, the average homeowner would not directly benefit, but as a trickle down effect since it would help banks free up money to loosen lending practices.  This would in turn help to jumpstart our ailing housing market. 

Although this plan won’t help every problem we have with our financial system, if the plan is passed and works, this will be a fast and great step at helping our economy as a whole get through this tough time.

Stay tuned for future updates on the progress of this proposed bill.

Matt Shiles



December 6th, 2007

By: Lori Rivera – Realtor

     When I first became a Realtor, my dream was to put individuals into their first homes, and then watch them and their dreams grow!  It was not to watch their dreams shattered by the nightmare of foreclosure.  After a recent seminar sponsered by the Florida Housing Finance Corporation (Florida Housing) and the many short-sale classes I’ve been attending, I feel it my duty to inform everyone that if life’s circumstances are leading you toward the possibility of foreclosure on your home, there may be other options available to you; but you have to act as soon as possible.

     The reality is that foreclosure will negatively affect your credit for a minimum of 10 years.  And, contrary to popular belief, there are many lenders that will work with a borrower regarding mortgage payment options when unforeseen circumstances–such as illness, divorce, extreme changes in market, predatory lending, change in job status, ect.–threaten to affect timely loan repayment.

     There are several agencies that may be able to assit you, including the following: the US Department of Housing and Urban Development (www.hud.gov), NeighborWorks America (www.ns.org) and the Florida Housing Finance Corporation (www.floridahousing.org).

     In the instance that your financial situation changes so much that it may affect making your mortgage payments in a timely manner, the first thing you should do is to keep the lines of communication open with your lending institution.  Then if that doesn’t work, try contacting one of the agencies above.  If you’re still not getting anywhere, call a professional Realtor whom you know and trust, or a real estate attorney.

     Do not ever think that the only option you have is to sit and wait for the foreclosure notification because, truthfully, it is the last thing that your lender wants to occur. 

Readers Beware

September 25th, 2007

Post by: Matt Shiles – Realtor 

 Disclaimer: Read entire article before passing judgement 

     I have started to realize a growing trend.  Titles in real estate articles are becoming more misleading.  For example, many real estate articles in the Orlando Sentinel are seen to be anti-realtor or one sided when it comes to discussing real estate.  If readers only see the title and the first paragraph, that is correct.  But, this is not the case in terms of the entire articles.  Each real estate article I have read in the past few weeks has had both sides of the argument; the problem is that most readers never see it.

     An example of this comes from the Sunday Homes section of the Orlando Sentinel.  The title of the article is “Real Estate woes have many thinking ‘for sale by owner.’”  Only the first few paragraphs are on the front page.  After that, the reader must flip to the middle to continue the article.  For most, this is where the reading stops and the problem starts.  This article discusses the advantages of selling your home without a realtor for about 2/3 of the article.  Finally in the last few paragraphs the other side is discussed.  The author explains that a lot of time, energy and money are required to complete the process yourself.  The author gives a great argument against FSBO’s (For Sale By Owners) but I feel like it was too late.  Instead of presenting the article as a discussion on FSBO’s, the title implies that since many people are thinking ‘for sale by owner’, it must be a great idea. 

     I feel that people should be educated about the real estate market.  The way to do this is to immerse themselves with the current news.  These misleading titles are making readers think the market is much worse than it is.  Readers need to see past the headings and past the first few paragraphs and try to understand the entire article.  If not these doom-and-gloom titles will continue to hurt our market. 

     To view the entire article entitled, “Real Estate woes have many thinking ‘for sale by owner’” visit the Orlando Sentinel’s website and search the article title at:


To contact Matt email him at: matts@krowneservices.com



Dealing with Pre-foreclosures

September 20th, 2007

 Post by Matt Shiles – Realtor

Today Treasury Secretary Henry Paulson was seen on MSNBC talking about the Mortgage crisis with members of the House Financial Services Committee. He was discussing the possibilities of national standards being put in place for mortgage originators.  Paulson says that it would be a step in the right direction to have these national standards. 

Paulson also addressed the rising issue of foreclosures.  He explained to homeowners that problems with late payments should be dealt directly with their lender as these problems arise.  No one in the business profits from foreclosures so most lenders are willing to work with your situation to fix the problem before it gets out of hand.  For a lender the process of foreclosing on a customer can be  pricey, therefore they want to help you even if that means changing payment plans. 

 It is very important for homeowners to understand this concept.  It seems like the automatic response of people who fall behind in payments is to hide from the collectors.  With your mortgage, addressing the issue before it is too late can mean saving 100 to 150 points on your credit score.  This should be motivation enough for homeowners to face the issue and do what they can to aviod foreclosure.


September 13th, 2007

Welcome to the new Krowne Realty blog.  The purpose of this is to create a dialog about current Real Estate news between our Real Estate professionals and clients.