Hello, and welcome to Real Estate Reality Radio. The most important hour of radio every Friday from 9 to 10 on WBCB 1490 am. Thank you for joining Vince and me. For those of you who are not familiar with the show Vince the fun affable best friend and I am the guy with a bow tie and a bit of an attitude  Our show is dedicated to dispelling the myths associated with Real Estate and finance in your marketplace.

Within every market there are obstacles and solutions on the path to tremendous opportunities. Vince and I think most people are looking for practical  advice. Please feel free to call 215-740-8999 or visit peterbuchsbaum.com.

The news that hit home (literally) this week was Bucks County’s projected $24.3 million shortfall for the 2012 budget. Chief operating officer Brian Hessenthaler cites four options: 1. Decrease costs, 2. Increase revenue, 3. Tap reserves, 4. A combination of the first three. So there is someone in politics unlike the members of the “super committee” that understands reality.

I found the details of the issues very telling. First the 2012 budget was up a mere 1.7% (congrats to the Bucks County politicians for limiting the increases). Salaries and benefits were the largest increase in costs (according to the Commonwealth Fund benefit costs for employers is up 50% over 7 years averaging almost $14,000 per year). Non Union employees make up 1/3 of the staff agreed to a pay freeze and they contribute to their health care coverage. Future negotiations with the unions should be interesting. The other increased cost was the borrowing costs for the new justice center, and federally mandated upgrade to the emergency communication system.

Bucks County is not alone. They are merely a snapshot of local markets all over the country.

To add insult to injury the future pressure on the deficit is lower home prices. Lower values lead to lower tax revenues. Yes we will have a lawyer on in the next few weeks to help you better understand how to lower your tax bill. Prices rely on supply and demand. Fiserv the forecasting firm believes that while values will stop falling they will only rise 1.1% through 2015. They cite the mountain of foreclosures as the biggest stumbling block. Core Logic believes there are 5.4 million homes either in foreclosure, real estate owned, or owners seriously behind on payments currently on the market. If the estimates that only 4.8 million homes will be sold in all of 2012 then there is more than 1 years inventory.

This is not something that will solve itself if we keep instituting rules that constrict lending.

Short sales, foreclosures and bank owned properties are not foreign to our current guest. We are joined today by a friend and colleague Jamal Smith of Home Rescue Team (800) 385-4513 or www.homerescueteam.com. Their mandate is to provide comprehensive advisory services to the owners of distressed real estate assets. Jamal has more than ten years of marketing and real estate sales experience. He began his career with successful stints as a sales representative for major pharmaceutical companies Merck and Alcon, and became a full-time Realtor in 2002. He was featured on the cover of Realtor Magazine as one of the top 30 agents under age 30 in the nation in 2005.  He has a degree in marketing from Hampton University. His partner Rashaan Campbell brings over ten years of real estate analysis, financing and development expertise to the HRT team. Prior to co-founding Home Rescue Team, Rashann worked as a financial analyst for JP Morgan and as a senior loan officer for Moreland Financial Corporation. Both of these positions have contributed to Mr. Campbell becoming a well-trained and knowledgeable real estate entrepreneur Mr. Campbell holds a Bachelor of Science degree in finance from West Chester University.

Time for Open Discussion. Tune into Real Estate Radio Reality Friday November 25th 9:00am to 10:00 for the live feed.

Each week we discuss the myths of the mortgage market. Today we will discuss appraisals and how long you need to be self employed to qualify for a mortgage. How to work within the rules of HVCC.

Next week we are joined by Deana Corrigan from Keller Williams in Doylestown.

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