Ok, this is creepy. Finally signed off for the night around 2:15am,(yes it is 6:15am now, don't ask). Received this email at 2:28am about mortgage modifications. I had to laugh because the article explains that the video has been put together by "Private Mortgage Insurance" companies. Ironically what my last post was about. These companies are getting hit hard with claims and it is nearly impossible for them to track the lenders they insure as to their dealings with the homeowner. The lenders are taking the path of least resistance and just not dealing with the homeowner and taking the insurance claim. The PMI companies can not hold the lenders accountable until everyone speaks up and notifies them of what their lender is doing. Ok, I beat a dead horse. Out......
and be safe tonight. please dont drink and drive.
http://realtytimes.com/rtpages/20091231_mod.htm
Thursday, December 31, 2009
Short Sales and Loan Modifications
If individuals are having issues with modifying their loans or getting a response from their lender(s) during a short sale, they need to be asking their lenders if they are carrying private mortgage insurance. Many homeowners are completely unaware that just because they put 20% down or did some type of hybrid loan (80/10/10 or 80/20) to avoid having to pay the extra mortgage insurance (otherwise known as PMI or MIP depending on type of loan) that the lenders can still take out an insurance policy after the fact to cover themselves. If your lender(s) are not cooperating, there is a good chance your loan is insured by one of the private mortgage insurers. The lenders are all about making money. There is nothing ethical or moral about their decisions except for the bottom line. If they foreclose on your home, they file a claim for their loss and get your bad loan off the books. Why should they modify it? There is no incentive for them to do so. Your home is considered a toxic asset (oxymoron) and frankly the banks want you to foreclosure so they can get it out of their portfolio.
Most modifications consists of interest rates adjustments only. Very rarely does it involve principal reduction. So in a sense, you will still be "renting" your home until the value goes back up. Factor in the average 5-6% appreciation when the economy improves and you could be "renting" your home for a very long time. The principal balance owed will be upside for sometime continuing to drag down the lenders portfolio values. You must keep records of every conversation especially all phone operators id numbers. Keep in mind that the private mortgage insurance can be taken out at any time by your lender. If your loan is not Fannie or Freddie, that means a private investor(s) are holding the note and there is a strong possibility your loan will have this hidden insurance without your knowledge.
First step: Find out if your loan has private mortgage insurance paid for by the lender themselves. Call your lender 3 separate times to make sure you get the same answer at least twice. Most lenders have call centers of people who get yelled at all day. Call early in the morning for best answer before they have been abused. Many lenders are on East Coast Time.
Second step:
If Yes, take your issue to a higher source. I will indicate resources to file a complaint in a subsequent post. Get the name of the private mortgage insurer and make them aware that your lender is not co operating with you. Many of these mortgage insurers are now coming after the lenders for their losses when they find out the lenders had an opportunity to prevent the foreclosure and did nothing about it.
If No, good luck, although this is highly not advisable but a known fact in the industry, "Why fix what aint broke?" As long as you are making payments they have no incentive to work with you. No one will ever tell you to stop making payments, but why do the lenders only pay attention to the files that are at least 3 months behind in payments?
One organization that has an 80% success ratio in getting loans modified is http://www.naca.com/. Went to one of their presentations to educate myself after a newscast about them. (I dont always believe or trust what I hear on the news). Very legite and the people truly have a passion for stoping foreclosures. They are bullying the banks to modify and they have the connections to do so.
Step 3: Wait. Loan modifications can take from 60 days (smaller banks) to over a year with larger banks (such as Aurora Loan Services).
It is truly horrible what has come of our corporate industry ethics. It is not even human anymore. A cancer has infected the whole industry starting with Wall Street and spreading like wildfire throughout corporate america. There is much more happening behind what the morning news is told to report to the faceless unknowning minds that observe. All of the Obama plans have been made optional for the lenders to participate in and since his administration has apparently been unaware of this private mortgage scheme going on, all of his attempts to help have been bust. I think the last statistic I heard was that less than 10% of eligible loans had actually benefited from his plans. Why is that? (Hint, BECAUSE THE BANKS ARE GETTING PAID TO FORECLOSE ON YOUR HOME)
But who am I? Just a little unknown Realtor in Buckeye Arizona trying to keep my neighborhood and yours from declining more in property value by these infected tumors.
peace.
Most modifications consists of interest rates adjustments only. Very rarely does it involve principal reduction. So in a sense, you will still be "renting" your home until the value goes back up. Factor in the average 5-6% appreciation when the economy improves and you could be "renting" your home for a very long time. The principal balance owed will be upside for sometime continuing to drag down the lenders portfolio values. You must keep records of every conversation especially all phone operators id numbers. Keep in mind that the private mortgage insurance can be taken out at any time by your lender. If your loan is not Fannie or Freddie, that means a private investor(s) are holding the note and there is a strong possibility your loan will have this hidden insurance without your knowledge.
First step: Find out if your loan has private mortgage insurance paid for by the lender themselves. Call your lender 3 separate times to make sure you get the same answer at least twice. Most lenders have call centers of people who get yelled at all day. Call early in the morning for best answer before they have been abused. Many lenders are on East Coast Time.
Second step:
If Yes, take your issue to a higher source. I will indicate resources to file a complaint in a subsequent post. Get the name of the private mortgage insurer and make them aware that your lender is not co operating with you. Many of these mortgage insurers are now coming after the lenders for their losses when they find out the lenders had an opportunity to prevent the foreclosure and did nothing about it.
If No, good luck, although this is highly not advisable but a known fact in the industry, "Why fix what aint broke?" As long as you are making payments they have no incentive to work with you. No one will ever tell you to stop making payments, but why do the lenders only pay attention to the files that are at least 3 months behind in payments?
One organization that has an 80% success ratio in getting loans modified is http://www.naca.com/. Went to one of their presentations to educate myself after a newscast about them. (I dont always believe or trust what I hear on the news). Very legite and the people truly have a passion for stoping foreclosures. They are bullying the banks to modify and they have the connections to do so.
Step 3: Wait. Loan modifications can take from 60 days (smaller banks) to over a year with larger banks (such as Aurora Loan Services).
It is truly horrible what has come of our corporate industry ethics. It is not even human anymore. A cancer has infected the whole industry starting with Wall Street and spreading like wildfire throughout corporate america. There is much more happening behind what the morning news is told to report to the faceless unknowning minds that observe. All of the Obama plans have been made optional for the lenders to participate in and since his administration has apparently been unaware of this private mortgage scheme going on, all of his attempts to help have been bust. I think the last statistic I heard was that less than 10% of eligible loans had actually benefited from his plans. Why is that? (Hint, BECAUSE THE BANKS ARE GETTING PAID TO FORECLOSE ON YOUR HOME)
But who am I? Just a little unknown Realtor in Buckeye Arizona trying to keep my neighborhood and yours from declining more in property value by these infected tumors.
peace.
Monday, December 28, 2009
Qoute of the Day
"Maturity is achieved when a person postpones immediate pleasures for long-term values." Joshua L. Liebman
Saturday, December 26, 2009
Love is.........
If I speak in the tongues of men and of angels, but have not love, I am only a resounding gong or a clanging cymbal. If I have the gift of prophecy and can fathom all mysteries and all knowledge, and if I have a faith that can move mountains, but have not love, I am nothing. If I give all I possess to the poor and surrender my body to the flames, but have not love, I gain nothing.
Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.
Love never fails....And now these three remain: faith, hope and love. But the greatest of these is love.
GOD
Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.
Love never fails....And now these three remain: faith, hope and love. But the greatest of these is love.
GOD
Friday, December 25, 2009
November Birthday Meaning According to Facebook :)
NOVEMBER BIRTHDAYS: Unique and brilliant. Has a lot of ideas. Difficult to fathom. Thinks forward. Extraordinary ideas. Sharp thinking. Fine and strong clairvoyance. Can become good doctors. Dynamic in personality. Secretive. Inquisitive. Knows how to dig secrets. Always thinking. Less talkative but amiable. Brave and generous. Patient. Stubborn and hard-hearted. If there is a will, there is a way. Determined. Never give up. Hardly becomes angry unless provoked. Loves to be alone. Thinks differently from others. Sharp-minded. Motivates oneself. Does not appreciate praises. High-spirited. Well-built and tough. Deep love and emotions. Romantic. Uncertain in relationships. Homely. Hardworking. High abilities. Trustworthy. Honest and keeps secrets. Not able to control emotions. Unpredictable.
Friday, December 18, 2009
Qoute of the Day
"Many things in life will catch your eye but few will catch your heart... Pursue those." - Author Unknown -
Thursday, December 17, 2009
Trans Siberian Orchestra - Carol of the Bells
There is nothing like the spirit of Christmas through the eyes of a child.....especially a precious little baby girl
I dedicate this to my beautiful daughter - may she never lose that spirit
http://www.youtube.com/watch?v=alIcwofkrS8&feature=player_embedded
I dedicate this to my beautiful daughter - may she never lose that spirit
http://www.youtube.com/watch?v=alIcwofkrS8&feature=player_embedded
Tuesday, December 15, 2009
Deed For Lease Program Is Another Attempt To Make Things Better
How funny. Just got a call from someone on Friday about this. It was offered to them and they thought it was some type of fraud. Crazy times.
http://tinyurl.com/y996y6z
http://tinyurl.com/y996y6z
REO Trans is Now "Equater"
Efficiency, what a concept. This is absolutely wonderful! Insert below taken from email.
"Equator, the default-servicing industry technology leader is pleased to announce the launch of its new Agent-Initiated Short Sale feature. Starting December 8th, Agents have the ability to request a Short Sale through the Agent Portal on www.equator.com. Only certain industry leading Lenders are currently allowing Agents to initiate Short Sales through Equator. Since it is such a great way for agents to help their clients, we expect many more Lenders to follow suit in the months to come. Final determination of whether the property in question qualifies as a Short Sale is at the discretion of the Lender or Servicer.
Simply log into Equator.com, click the Initiate Short Sale link located in the header under the My Properties and Offers section, choose the Lender or Servicer, input the loan number provided by the Lender or Servicer, and request a Short Sale. For further details on the Agent-Initiated Short Sale, please visit www.equator.com today.
Note: Please do not contact Equator by phone to initiate Short Sales - Equator is simply the technology provider and as such makes no determination on any aspect of the Short Sale acceptance and/or decisions. Only the Lender or Servicer can make decisions on Short Sales"
"Equator, the default-servicing industry technology leader is pleased to announce the launch of its new Agent-Initiated Short Sale feature. Starting December 8th, Agents have the ability to request a Short Sale through the Agent Portal on www.equator.com. Only certain industry leading Lenders are currently allowing Agents to initiate Short Sales through Equator. Since it is such a great way for agents to help their clients, we expect many more Lenders to follow suit in the months to come. Final determination of whether the property in question qualifies as a Short Sale is at the discretion of the Lender or Servicer.
Simply log into Equator.com, click the Initiate Short Sale link located in the header under the My Properties and Offers section, choose the Lender or Servicer, input the loan number provided by the Lender or Servicer, and request a Short Sale. For further details on the Agent-Initiated Short Sale, please visit www.equator.com today.
Note: Please do not contact Equator by phone to initiate Short Sales - Equator is simply the technology provider and as such makes no determination on any aspect of the Short Sale acceptance and/or decisions. Only the Lender or Servicer can make decisions on Short Sales"
Monday, December 14, 2009
2010 and Rebuilding or Protecting Your Credit Score
I am always being asked "How much will this hurt my credit?" (usually referencing a short sale) This article seems to do a pretty good run down of it all.
http://realtytimes.com/rtpages/20091214_rebuild.htm
http://realtytimes.com/rtpages/20091214_rebuild.htm
Sunday, December 13, 2009
Qoute for the night
"You can easily judge the character of others by how they treat those who can do nothing for them or to them." Malcolm Forbes (1919-1990) American Publisher
Friday, December 11, 2009
Question The Fear
Ask yourself why you are afraid? Did a negative episode happen in your life where you where ridiculed or judged? If so, a part of you decided, “ I’ll never do that again.” It became your survival strategy. Healing that wound will require that you ask the scared part what it would need to feel safe. A client of mine, the other day said just that to her scared part . It became clear that her scared part would only be willing to speak up if it was being heard by a friendly, supportive audience, where mistakes were allowed.
By: Dr. Maya Bailey, author of, "Law of Attraction for Success Minded Professionals"
By: Dr. Maya Bailey, author of, "Law of Attraction for Success Minded Professionals"
Quote of The Day
"Man's greatest actions are performed in minor struggles. Life, misfortune, isolation, abandonment and poverty are battlefields which have their heroes - obscure heroes who are at times greater than illustrious heroes." Victor Hugo (1802-1885) French Writer
Tuesday, December 8, 2009
Is walking away smart if home underwater?
http://www.msnbc.msn.com/id/34277720/
What was I just talking about? This is a personal decision for everyone but just like the social stigma on divorce so is it on foreclosures or bk's (as if those who contribute to this stigma have nothing to be ashamed of). How sad that society would rather see people suffer than to live in peace and happiness. I can tell you which person I would rather work with.
I quote a very good friend of mine "I reject the notion that a deal is a deal, not because it isn’t, but rather because human beings tend to lack the capacity to understand the implications..." More importantly this includes the banks making faulty loans without understanding what they were doing to our economy. ( I have an issue with this too, but will let it go here).
You want to fix this mess, start with the moral ethics of wall street and corporate america (supposed role models and leaders of our society). I leave out the government as they are more like Pinocchio on strings being played by the two fore mentioned.
Sniff sniff....it stinks more with every lie!
There is no faith anymore in doing what is right.
What was I just talking about? This is a personal decision for everyone but just like the social stigma on divorce so is it on foreclosures or bk's (as if those who contribute to this stigma have nothing to be ashamed of). How sad that society would rather see people suffer than to live in peace and happiness. I can tell you which person I would rather work with.
I quote a very good friend of mine "I reject the notion that a deal is a deal, not because it isn’t, but rather because human beings tend to lack the capacity to understand the implications..." More importantly this includes the banks making faulty loans without understanding what they were doing to our economy. ( I have an issue with this too, but will let it go here).
You want to fix this mess, start with the moral ethics of wall street and corporate america (supposed role models and leaders of our society). I leave out the government as they are more like Pinocchio on strings being played by the two fore mentioned.
Sniff sniff....it stinks more with every lie!
There is no faith anymore in doing what is right.
A slowly improving U.S. economy should ease credit-card and mortgage delinquencies in 2010, but the improvement won't show up in Arizona.
http://azc.cc/9B9cRP
Hmm. Let me think about this logic. Homeowner loses job or wages reduced. Forecloses and/or short sales home. Credit score declines. Miss one payment, bounce a payment, make a late payment and your credit card is waiting like a lion in the bush to pounce. Beware. Next comes the letter from your credit card company that they are jacking your rate up to 30% interest. Homeowner has no home, no or little income and credit card triples his interest rate/minimum monthly payment. Yep, that is clear as mud. If I wanted to insure someone was going to pay me that is exactly what I would do - kick them when their down. (Sarcasm, injected here). These banks are giving people no other alternative than to stop making the payment or file for bankruptcy.
If someone has already fallen on hard times, is this not insult to injury. Is it not feasible to make a mistake? Don't they? It almost appears like the credit card companies want people to stop making payments and file bankruptcy. Oh yeah, I forgot, they received a bail out. Can someone please say "Enabler".
Oh, but wait, aren't these the same institutions preaching about doing what's "Morally" right and paying your obligations. Give me a break..........
Sorry to hear that the deliquency rates will be increasing as this affects us all and those we love. Just disappointed that instead of finding a solution to the problem, the financial institution are just adding to it. They are their own worst enemy.
Hmm. Let me think about this logic. Homeowner loses job or wages reduced. Forecloses and/or short sales home. Credit score declines. Miss one payment, bounce a payment, make a late payment and your credit card is waiting like a lion in the bush to pounce. Beware. Next comes the letter from your credit card company that they are jacking your rate up to 30% interest. Homeowner has no home, no or little income and credit card triples his interest rate/minimum monthly payment. Yep, that is clear as mud. If I wanted to insure someone was going to pay me that is exactly what I would do - kick them when their down. (Sarcasm, injected here). These banks are giving people no other alternative than to stop making the payment or file for bankruptcy.
If someone has already fallen on hard times, is this not insult to injury. Is it not feasible to make a mistake? Don't they? It almost appears like the credit card companies want people to stop making payments and file bankruptcy. Oh yeah, I forgot, they received a bail out. Can someone please say "Enabler".
Oh, but wait, aren't these the same institutions preaching about doing what's "Morally" right and paying your obligations. Give me a break..........
Sorry to hear that the deliquency rates will be increasing as this affects us all and those we love. Just disappointed that instead of finding a solution to the problem, the financial institution are just adding to it. They are their own worst enemy.
Saturday, December 5, 2009
Ughhh! TV Shopping At BestBuy: An Adventure
Yep, I don't have time for TV and I found myself at Bestbuy wanting a new TV. Why? Really....... Am I trying to tell myself I need to slow down from being a workaholic. If that were the case, I still would rather be having a glass of wine with a girlfriend than watching TV or better yet...playing Chutes and Ladder with my daughter. So I do believe it is because I have a 27inch tv in a 58" niche opening and its a thorn in my side to look at everytime I walk through the house. Ok, self analysis done.....wait..... mind still thinking. I bet I could've bought one of those fake TV's from a closing model home complex :) would've been cheaper.
Ok, let it go.
So here I am at Best Buy. Spare you the details of the whole plasma vs LCD education lesson. Took daughter because I knew she wouldn't last long, sans I would have to make my decision quick. That plan was a bust. They were playing Ice Age on all the TV's. She planted her butt in front of one of them, never heard a peep until I was done. Picked out a tv. I had sucker on my forehead, purchased a Blu Ray Player. Didn't even know what it was, but apparently to make my TV picture look like theirs I needed it. Ok, and now I need an HDMI cable that's an additional $50.
So now my head is spinning, tv aliens abducted my daughter, and my credit card company is very happy.
Get home, hook it up. TV is unbelievable light. My existing tv is a big butt tv that is akward to hold because of the back protrusion. This new tv was nothing. I almost felt like they did sell me that fake model home tv. Plugged the tv and blu ray in and "Voila"....no picture. Hmmm. Remote, TV on, power on, push button, push it again contorting my arm thinking its the angle. (I am picturing now the person standing at a cross walk. You are stopped at a red light. You watch as the person standing at the crosswalk perpetually pushes the button as if it is going to help. That was me with this remote). Crap, going through the paperwork, find batteries for remote. Tv turns on and menus appear. Not just the basic menu but like complete programming menu. Ok, Im over the tv.
Here is the best part, seriously. This blu ray player that I didn't know existed is the best thing since sliced bread. It has a feature to hook up to my wireless internet so I can listen to music(thru Pandora) and watch instant feed movies through Netflix. Whoa!!!!!!!!!!! I downgraded my Cox cable to the 2-22 channels a couple of months back. Why pay to watch "Legally Blonde" for the bazillioneth time. But NOW>>>> I can watch whatever I want when I want including childrens programs that I lost when I downgraded my cable. So instead of paying the extra $75 a month for digital cable, I have it all in this blu ray player.
Tonight we went to Pollo Loco for their grilled chicken. Fabulous by the way..a little squeeze of lime of the chicken, taste bud heaven. Alexis said "Mommy can we pick out a movie on your computer and watch a movie together?" I was like "You got it sweet pea!" We got home, cracked open the laptop on my bed. Signed into Netflix. We both picked out a movie, added it to instant que, and again "Voila" there is was showing up on my TV. Holy Moly, This IS Way To Cool! We watched "The King and I" and I did some work on my laptop while watching the movie with her. I can do this!
So after all of this I would like to do a plug for technology. If you are going to spend the money on a blu ray player, get Samsung as they have this wonderful feature. I ended up buying another one at Walmart for $149. Well worth it in my opinion since I don't subscribe to upgraded cable any longer. $75 a month for eternity or $149 upfront and $10 a month for netflix and I get to choose what I want to watch. Hmm no brainer.
Ok, let it go.
So here I am at Best Buy. Spare you the details of the whole plasma vs LCD education lesson. Took daughter because I knew she wouldn't last long, sans I would have to make my decision quick. That plan was a bust. They were playing Ice Age on all the TV's. She planted her butt in front of one of them, never heard a peep until I was done. Picked out a tv. I had sucker on my forehead, purchased a Blu Ray Player. Didn't even know what it was, but apparently to make my TV picture look like theirs I needed it. Ok, and now I need an HDMI cable that's an additional $50.
So now my head is spinning, tv aliens abducted my daughter, and my credit card company is very happy.
Get home, hook it up. TV is unbelievable light. My existing tv is a big butt tv that is akward to hold because of the back protrusion. This new tv was nothing. I almost felt like they did sell me that fake model home tv. Plugged the tv and blu ray in and "Voila"....no picture. Hmmm. Remote, TV on, power on, push button, push it again contorting my arm thinking its the angle. (I am picturing now the person standing at a cross walk. You are stopped at a red light. You watch as the person standing at the crosswalk perpetually pushes the button as if it is going to help. That was me with this remote). Crap, going through the paperwork, find batteries for remote. Tv turns on and menus appear. Not just the basic menu but like complete programming menu. Ok, Im over the tv.
Here is the best part, seriously. This blu ray player that I didn't know existed is the best thing since sliced bread. It has a feature to hook up to my wireless internet so I can listen to music(thru Pandora) and watch instant feed movies through Netflix. Whoa!!!!!!!!!!! I downgraded my Cox cable to the 2-22 channels a couple of months back. Why pay to watch "Legally Blonde" for the bazillioneth time. But NOW>>>> I can watch whatever I want when I want including childrens programs that I lost when I downgraded my cable. So instead of paying the extra $75 a month for digital cable, I have it all in this blu ray player.
Tonight we went to Pollo Loco for their grilled chicken. Fabulous by the way..a little squeeze of lime of the chicken, taste bud heaven. Alexis said "Mommy can we pick out a movie on your computer and watch a movie together?" I was like "You got it sweet pea!" We got home, cracked open the laptop on my bed. Signed into Netflix. We both picked out a movie, added it to instant que, and again "Voila" there is was showing up on my TV. Holy Moly, This IS Way To Cool! We watched "The King and I" and I did some work on my laptop while watching the movie with her. I can do this!
So after all of this I would like to do a plug for technology. If you are going to spend the money on a blu ray player, get Samsung as they have this wonderful feature. I ended up buying another one at Walmart for $149. Well worth it in my opinion since I don't subscribe to upgraded cable any longer. $75 a month for eternity or $149 upfront and $10 a month for netflix and I get to choose what I want to watch. Hmm no brainer.
Friday, December 4, 2009
Quote
The more tranquil a man becomes, the greater is his success, his influence, his power for good. Calmness of mind is one of the beautiful jewels of wisdom." James Allen (1864-1912)
Owner Occupied Bidders Getting "First Look" at Fannie Mae Listed Homes
This is GREAT news for those representing clients who are actually going to owner occupy the property. All Fannie Mae owned foreclosures will give owner occupied offers "First Look" for the first 15 days.
Investor Report: REO Listings
http://realtytimes.com/rtpages/20091204_investorreport.htm
Investor Report: REO Listings
http://realtytimes.com/rtpages/20091204_investorreport.htm
Wednesday, December 2, 2009
Article: Editorial Giddy Delinquency
http://realtytimes.com/rtpages/20091202_delinquency.htm
I am attending Desiree Montgomery's 2 day short sale class to obtain my "Master Short Sale Certification (MSSC). To get the certification you have to complete a short sale transaction for both a buyer and seller before being awarded this designation. I find this interesting as the larger more nationally recognized designation - CDPE (Certified Distressed Property Expert) designation does not require this. Would the average home buyer/seller know the difference. How can you label yourself an "Expert" when you have not even completed a short sale transaction. With all the legal and tax implications involved with short sales I find this designation somewhat irresponsible and misleading to the public.
Moving on. In this class Desiree has been in direct communication with the state commissioner and other mover and shakers of the real estate world. In accordance with this article, she is hearing we still have another 7 years minimum to get out of this mess. Now I do not mean to be a Debbie Downer but again, being a realist, it is our job to stay on top of information for the benefit of our clients. Everyone and their brother wants to invest in a property under $150k, but the luxury market is getting slammed due to lack of readily available financing. Most want 20% down. Who wants to put 20% down when prices are predicted to decline further. From a banks point of view, why do they want to lend on such a large amount knowing the asset will be upside down in a year. Life happens. Divorce, Relocation, Death....Life does not stop because homes are upside down on value.
This article only further confirms that we have a way to go.
Do not even get me started on the knowledge that some banks have voluntarily paid for mortgage insurance on high risk properties on the back end of the loan. (By the Way, Arizona now has a 99% risk factor for gaining mortgage insurance. It was 93% last year). Even as homeowners are trying to do the right thing and short sale their home to cut the banks loses, banks are requiring the seller to still contribute funds to release the lien even though they are fully covered by the insurance.....and not to mention discounting our commission...... and still reporting a 1099 unearned income to IRS (for seller) even though the loss was paid by insurance. Whoa.........! I can not recommend this class enough. What an eye opener. If there is one thing I can take away from today's class is that every homeowner should consider tax AND legal counsel before considering a short sale. In some cases, foreclosure and/or bankruptcy MAY be a better option. Do not trust or believe anything you hear on the street especially those whose Uncle's Friend's Girlfriend just did it/went through it/considering it. Everyone's situation IS different.
:)
I am attending Desiree Montgomery's 2 day short sale class to obtain my "Master Short Sale Certification (MSSC). To get the certification you have to complete a short sale transaction for both a buyer and seller before being awarded this designation. I find this interesting as the larger more nationally recognized designation - CDPE (Certified Distressed Property Expert) designation does not require this. Would the average home buyer/seller know the difference. How can you label yourself an "Expert" when you have not even completed a short sale transaction. With all the legal and tax implications involved with short sales I find this designation somewhat irresponsible and misleading to the public.
Moving on. In this class Desiree has been in direct communication with the state commissioner and other mover and shakers of the real estate world. In accordance with this article, she is hearing we still have another 7 years minimum to get out of this mess. Now I do not mean to be a Debbie Downer but again, being a realist, it is our job to stay on top of information for the benefit of our clients. Everyone and their brother wants to invest in a property under $150k, but the luxury market is getting slammed due to lack of readily available financing. Most want 20% down. Who wants to put 20% down when prices are predicted to decline further. From a banks point of view, why do they want to lend on such a large amount knowing the asset will be upside down in a year. Life happens. Divorce, Relocation, Death....Life does not stop because homes are upside down on value.
This article only further confirms that we have a way to go.
Do not even get me started on the knowledge that some banks have voluntarily paid for mortgage insurance on high risk properties on the back end of the loan. (By the Way, Arizona now has a 99% risk factor for gaining mortgage insurance. It was 93% last year). Even as homeowners are trying to do the right thing and short sale their home to cut the banks loses, banks are requiring the seller to still contribute funds to release the lien even though they are fully covered by the insurance.....and not to mention discounting our commission...... and still reporting a 1099 unearned income to IRS (for seller) even though the loss was paid by insurance. Whoa.........! I can not recommend this class enough. What an eye opener. If there is one thing I can take away from today's class is that every homeowner should consider tax AND legal counsel before considering a short sale. In some cases, foreclosure and/or bankruptcy MAY be a better option. Do not trust or believe anything you hear on the street especially those whose Uncle's Friend's Girlfriend just did it/went through it/considering it. Everyone's situation IS different.
:)
Saturday, November 21, 2009
Qoute of the day
"You are a wise soul who unlocks the mysteries of life by beginning with the self."
Needless to say, I have a headache after a run in with significant other of a client. As with all careers and experiences you learn that losing your temper is never a good thing. However, standing up for what you believe in and your character can always be a sensitive area. I find it quite difficult to maintain composure when my integrity is being questioned. Everyone has different motives for their need to intimidate and bully, but the older I get, the wiser I get, the less tolerant I am of disrespectful behaviour. So although there are many mysteries of life for me to figure out including those within, I can only be me now and respond accordingly. Peace.
Needless to say, I have a headache after a run in with significant other of a client. As with all careers and experiences you learn that losing your temper is never a good thing. However, standing up for what you believe in and your character can always be a sensitive area. I find it quite difficult to maintain composure when my integrity is being questioned. Everyone has different motives for their need to intimidate and bully, but the older I get, the wiser I get, the less tolerant I am of disrespectful behaviour. So although there are many mysteries of life for me to figure out including those within, I can only be me now and respond accordingly. Peace.
Friday, November 20, 2009
It's Not What Happens, But How You React That Counts
This morning I received a not so nice email from a company I do business with in regards to a question I had about their service. Their response was totally not what I was expecting. Be warned sending emails in the early morning before people have had their coffee and medication can be dangerous. My lesson learned today. This article showed up in my email shortly thereafter. Is someone trying to tell me something?
http://realtytimes.com/rtpages/20091120_react.htm
http://realtytimes.com/rtpages/20091120_react.htm
Thursday, November 19, 2009
Agents Have No Duty to Submit Short Sale Offers - Surprised?
Love this article. I think most agents are doing this already but a few are submitting all because the lender is requesting they do so. It is not up to the lender, it is still up to the "Owner" to pick the best offer. I will only submit one offer at time and make the listing AWC as soon as both buyer and seller sign off.
http://www.brokeragentsocial.com/article/564/agents-have-no-duty-to-submit-short-sale-offers-surprised
http://www.brokeragentsocial.com/article/564/agents-have-no-duty-to-submit-short-sale-offers-surprised
ATM - According to MOM - Too funny to keep to myself
With all the acronyms flying around out there, I would like to add one. ATM, According To Mom. This could be really funny if you think about it because I am sure everyone has a story that their mother has told them numerous times.
Here goes mine from my meeting with my mother today:
ATM, for you single ladies, a good man is someone who can lift heavy things, do the landscaping, and has good teeth. For you married ladies, think twice before sending your man to the dog house if he can do these two things, apparently, he's a keeper.
Ok, one more, if your children sneeze it is either because they have a wet diaper or have to pee. (seriously?!?!?)
Here goes mine from my meeting with my mother today:
ATM, for you single ladies, a good man is someone who can lift heavy things, do the landscaping, and has good teeth. For you married ladies, think twice before sending your man to the dog house if he can do these two things, apparently, he's a keeper.
Ok, one more, if your children sneeze it is either because they have a wet diaper or have to pee. (seriously?!?!?)
Overcoming 5 Common Investing Mistakes Made by Property Owners & Managers
http://realtytimes.com/rtpages/20091119_mistakes.htm
Great article for those looking to invest in the Great Phoenix real estate market. What many out of state investors do not realize is that the individual cities all charge rental sales tax. This must be calculated into the rent or on top of the rent to the potential tenant. Some cities are more diligent than others about collecting this sales tax. I can talk from experience that the City of Buckeye is on their game. You must have a business license to have even one home as a rental property. When the tenants turn on the utilities in their name a red flag is sent to the city auditing department and "Voila", you suddenly receive a nice little rental tax bill in the mail :)
Finding a Realtor who specializes in the area you are looking to invest in is very important.
They only thing I disagreed with in this article was the suggestion that "certain" areas are trouble. I have many clients who invest in what might be considered a "certain" area and they are finding great success especially with section 8 paying 1.5x times the normal rent guaranteed every month. The people qualifying for section 8, in my experience, have maintained the homes and left the homes in acceptable condition. If they do not, they might lose the benefit if a complaint is filed. Now this type of investment is not for everyone granted, but I do not think it should be ruled out completely as this article has done.
Great article for those looking to invest in the Great Phoenix real estate market. What many out of state investors do not realize is that the individual cities all charge rental sales tax. This must be calculated into the rent or on top of the rent to the potential tenant. Some cities are more diligent than others about collecting this sales tax. I can talk from experience that the City of Buckeye is on their game. You must have a business license to have even one home as a rental property. When the tenants turn on the utilities in their name a red flag is sent to the city auditing department and "Voila", you suddenly receive a nice little rental tax bill in the mail :)
Finding a Realtor who specializes in the area you are looking to invest in is very important.
They only thing I disagreed with in this article was the suggestion that "certain" areas are trouble. I have many clients who invest in what might be considered a "certain" area and they are finding great success especially with section 8 paying 1.5x times the normal rent guaranteed every month. The people qualifying for section 8, in my experience, have maintained the homes and left the homes in acceptable condition. If they do not, they might lose the benefit if a complaint is filed. Now this type of investment is not for everyone granted, but I do not think it should be ruled out completely as this article has done.
Tuesday, November 17, 2009
Channel 10 News Whirly Bird is Coming to Verrado Elementary School tomorrow (Wednesday 11/18)
Verrado Moms,
They are doing 2 live segments from The Raven after the live school segment. If you are a Verrado mom please be at the Raven by 9am. Thanks Tara Woods for organizing this.
They are doing 2 live segments from The Raven after the live school segment. If you are a Verrado mom please be at the Raven by 9am. Thanks Tara Woods for organizing this.
Estrella Falls Mall Delayed Again.....(asking for 4 years)
Monday, November 16, 2009
Dream Home With A Past - Drug Lab
Must See Video for Realtors or anyone looking to purchase a home. Not all drug labs are reported. http://bit.ly/4jhk5P
Thursday, November 12, 2009
Realtor Sued over Misrepresentation of Tax Records
Realtor Sued For Misrepresentation When Assessor's Record are IncorrectThere's really nothing for real estate agents and brokers to like about a recent case brought to our attention by the legal department of the National Association of Realtors® (NAR). Bowman v. Presley arose out of a 2005 transaction that took place in the state of Oklahoma. The ruling came down from the Oklahoma Supreme Court.Full Story: http://realtytimes.com/rtpages/20091103_realtorsued.htm
Difference Between a Judicial and Non Judicial Foreclosure
Non-Judicial States Let Mortgage Lenders Off The HookThere is a lot of talk about foreclosures in the news today. One aspect of foreclosures that has received little attention is difference between a judicial state and a non-judicial state. A judicial state requires that a lender file a foreclosure action in the court system and get an order from a judge before the property goes to a foreclosure sale. This provides the opportunity for the homeowner to assert any claims against the lender he or she may have and allow a judge to make a determination before the homeowner loses the home.Full Story: http://realtytimes.com/rtpages/20091104_nonjudicial.htm
Mold Lawsuit
Court Rejects Expert Mold TestimonyMore often than is widely acknowledged, courts come up with good and sensible rulings. When that happens, we do well to acknowledge them. In the case of Dee v. PCS Property Management, California's Second Appellate District Court of Appeal affirmed the good ruling of a trial judge. Inasmuch as the case had to do with claims regarding mold, it is of more than a little interest to a variety of parties involved with real estate.Full Story: http://realtytimes.com/rtpages/20091110_mold.htm
FREE Admission to Disneyland/Disney World
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