Michael's Northwet Gazette

Zillow - - Breakdown Accurate - - or Error Prone?

2008-04-02T00:15:00Z

Dave Gallagher is the business editor at The Bellingham Herald. He maintains a business blog for the Bellingham & Whatcom county business pulse.

Dave recently wrote an interesting article describing Zillow's new analysis report - called home values band.

This Zindex home value indicator provides details on national home trends. This tool analyzes fourth quarter 2007 home selling prices (in various bands of price range) compared to a year earlier. Great idea, but there are numerous people raving about the accuracy, versus another partisan crowd ranting about the gross inaccuracies of the pricing indicators!

Well I don't know if the ones ranting are in denial, just can't face up to the fact that real estate values have declined, or if Zillow's Web site is skewed with inappropriate bands of house width!

Well check it out and proceed with caution, who knows it might just be a very accurate tool for your neighborhood!

Warm regards,

Michael Lozar
Bellingham Mortgage Loan Officer

If It Ain't Broke, Fix It Until It Is!

2008-03-09T17:57:11Z

Seems as if a lot more people are endorsing the concept that the U.S. government ought to step in and resolve the mortgage and credit melt-down mess.

I don't know who coined the motto for our government 'If it ain't broke, fix it until it is!' but I certainly concur with many other people that our government is too slow to act, too encumbered with wasteful habits, and inefficient in dispencing funds to appropriate recipients.

It is unfortunate a lot more people will endure financial duress with the continued decline in home sales and prices; however, I had two friends last year that applied for mortgages with me. After reviewing their income, debts, assets, employment history, and probable moving expenses (think new drapes & furniture also) I recommended they obtain lower priced homes & mortgages.

Well, they didn't want to face realty reality, and took their business elsewhere until they finally found someone willing to loan them a higher amount.

So now with the real estate market declining, lending qualifications tightening, and foreclosures escalating, I hope they don't become disabled, lose a job, incur high medical expenses, etc. - - - because they have no savings to sustain them. If they can't make mortgage payments, it is going to be a close race to see who acquires their home, a buyer looking for a short sale, or the REO agent of the lending institution!

Not all borrowers are burdened with high-interest resetting loans, due to unethical mortgage lenders. For those who deliberately chose to ignore common sense and overextended themselves, or, who lied on a loan application, I don't see why the rest of us should be forced to pay higher taxes to bail out irresponsible decisions.

Wouldn't it be fantastic if the real estate market recovered swiftly and completely! I believe we will continue to have declined sales and property values until 2009, some areas being more painful than others.

Hopefully this will be a good learning lesson for everyone, and people will start saving more, and live within their means.

Michael Lozar
Bellingham Mortgage Advisor

Wallpaper your home from photos!

2008-02-09T14:05:27Z

Do you have fond memories from a favorite vacation spot? Why not relive the ambiance and ecstasy of that special trip of rest, recreation, and relaxation.

The secret? by having Denmark-based Ferm Living turn your photo into custom designer wallpaper!

In a fairly simple, but not cheap, process you can now decorate your home with custom wall paper.

Upload your photo(s) to www.wallcollection.com and in a few weeks you'll receive your custom fit roll of wallpaper. What's really nice is that the image is printed on one large sheet, with no seams, and is ready to be glued to the wall.

Not a good photographer, fret no further, as you may choose from a gallery of existing photos and freehand sketches on the company's Web site.

Warm regards,

Michael Lozar
Bellingham Loan Officer
Commercial & Residential Loans

Budget Minded Home Decorating Site

2007-10-13T19:59:53Z

Kathy Wilson has an interesting Web site packed full of fun, creative, and low-cost home decorating ideas. check out her site Home Decorating On a Budget for a cornucopia of decorating, gardening, organizing, small space, and work-at-home solutions.

The site also contains links to books and other resources to enhance your quest for knowledge.

How about making a scarecrow to celebrate this Harvest Season! Here is the link for How to Make a Scarecrow Of course if you really want to scare the neighborhood kids, adorn your scarecrow with a Hillary Clinton mask!

Michael Lozar
Bellingham Loan Originator

Crapster - Racing Toilet Stolen In Seattle!

2007-10-08T23:52:52Z

Tom Valentine's soapbox racing creation, dubbed 'The Crapster' was wonderfully received at the Red Bull Soapbox Race in Fremont (Seattle suburb) last week.

This photo is credited to Tom Valentine, builder and racer of The Crapster. To see photos of all the soapbox racers from the Seattle races, check out the Red Bull Soapbox Race - Seattle page.

These wonderful creations and dance antics of the participants confirm that the good ole USA still has it's share of people who should remember to take their daily medications!

What is really funny about the race, is that someone stole the U-Haul truck that was transporting The Crapster to various race courses around the country.

Imagine the surprise on the thieves faces when they eagerly pried open the truck door to feast their eyes on the pilfered booty - - - only to turn out that the grand heist was a pile of %*$#!.

Want more details, than prepare for a hearty laugh while reading the Seattle Times article.

Keep Smiling

Michael Lozar
Bellingham Loan Originator

Mortgage Relief Tax Act Passes House 386-27

2007-10-08T15:02:51Z

On October 4th, the US House of Representatives approved legislation that permanently eliminates taxes on people who have their mortgage debt canceled. Under current law, canceled mortgage debt on primary residences counts as taxable income. This will probably expedite sales for the number of homes facing foreclosure.

It also relieves distressed sellers from 'Short Sale' tax consequences.

The act was strongly supported by Rep. Charles Rangel (D-NY), Chair of the House Ways and Means Committee. He stated "It is just not right or fair that families struggling through a foreclosure would then face a tax bill in addition to losing their homes when they have seen no increase in their net worth. This bill rights that wrong and provides tax relief to millions of American families."

I don't know about you, but I am greatly concerned that letting tens of thousands of homeowners off the hook will result in federal income taxes being increased, to offset this 'Get Out of Mortgage Free' act.

It will be interesting to see how the US Senate will modify the bill, and if President Bush will sign it into law. The White House has stated that a temporary solution is ok, but a permenate exclusion was not acceptable

Michael Lozar
Bellingham Mortgage Officer

Online Interior Design - $250 Per Room Design Scheme

2007-10-06T12:19:51Z

A couple of weeks ago I posted Pimp My Pad - Cure Ugly Home Syndrome! a great site from a budget conscious blogger with a knack for finding the latest chic home accessories that won't break your little piggy bank.

Well now that you have acquired a few knickknacks, how do you go about composing all the elements of your room into a visual paradise, instead of a messy Peewees Playhouse abode?

More importantly, how do you redecorate without your spouse going into convulsions and freezing the bank accounts?

Check out the Web site www.designerathome.com to get professional assistance at $250/room. You pick a room to decorate, answer a short online questionnaire about the room's purpose, your preferences, room measurements, photos, and $250. Two weeks later, you receive a design scheme, similar to paint-by-number to modify your room.

Of course you are on your own from here. Contractors and furniture delivery options are two obstacles to overcome.

With interior decorators charging $100-$150 an hour, plus the usual 30% markup on furniture and fabric purchases, the online site is a fantastic alternative to roll up your sleeves and save substantially.

Happy decorating!

Michael Lozar
Bellingham Mortgage Consultant

If Only I Knew - - -

2007-09-25T17:51:50Z

Thinking about starting a business in the Bellingham-Whatcom County region? A free seminar called "If Only I Knew . . ." will be held at the Washington Mutual Bank, 1336 Cornwall Ave. in Bellingham.

Several agencies are teaming up to sponsor this free seminar, from 3:00 to 5:00 pm, Wednesday, October 10th.

The event is sponsored by Western Washington University's Small Business Development Center, Whatcom Chamber of Commerce, and Service Core Of Retired Executives (SCORE).

If you are a business owner, starting a business, or a manager, this should be on your agenda! After the presentation, there will be time for networking. Be sure and bring a notepad to jot down answers to those elusive questions that have been haunting you!

To register, or for more information, please contact Rosa Devoe at 360-676-8900; or e-mail rosa.devoe@wamu.net.

Michael Lozar
Bellingham Mortgage Advisor

Pimp My Pad - Cure Ugly Home Syndrome!

2007-09-22T11:06:32Z

This budget conscious blogger has a knack for finding the latest chic home accessories that won't break your little piggy.

Pimp My Pad is a blog Web site directing home decorating treasure hunters to stylish geometric lamps for under $75, being able to upload photos and have them printed onto pillows, a 12-piece stemless wine glass package for $20, and a host of other unique 'home improvement' ideas to add some sparkle and ambiance to the old abode.

The blogger's handle is Pimp mama and she is on a crusade to eliminate ugly home syndrome. Her mission is to constantly find and post chic home frills with fantastic prices.

If you find a great, non-kitschy, decorating item, please consider notifying Pimp mama. She can be enlightened by sending her a message at pimpmypadplease@yahoo.com

Michael Lozar
Bellingham Mortgage Advisor

Purple Craze - The $5 Bill Gives Honest Abe A Makeover

2007-09-20T14:14:34Z

The familiar green and black colors of the $5 bill have gone 'mod' with shades of purple and grey parading around the distinguished portrait of Honest Abe Lincoln.

Originally the $5 bill was not going to get a makeover from Bureau of Engraving & Printing; however, counterfeiters were bleaching $5 bills and printing $100 denominations onto the bleached bills. Apparently the counterfeiters were so successful that the US government has been forced to update the watermarks, thread location, and a purple haze.

No confusing this for a $100 bill now!

Michael Lozar
Bellingham Mortgage Advisor

Most Expensive USA ZIP Codes

2007-09-19T12:51:55Z

Are you contemplating identity branding of your business to the ultra wealthy? Well a good mining tool is the recent Forbes Real Estate Special Report - Most Expensive ZIP Codes.

Guess which two cities housed the wealthiest of the affluent? If you guessed Alpine N.J. or Miami Beach's Fisher Island, you have been doing your homework!

Most of us can only fantasize about residing or socializing within the parameters of these communities - - oh well a little daydreaming is okay,

More than half of the most affluent ZIP codes were in the state of California. And overall, the vast majority were among coastal regions. Lakes and riverfront property just was not as desirable as panoramic ocean views.

Michael Lozar
Bellingham Mortgage Advisor

IRS Foreclosure Tax Relief Available for Homeowners

2007-09-18T15:32:23Z

A special Web section of the IRS site unveiled tax relief for homeowners who lose their home to foreclosure.

The IRS is taking steps to reassure homeowners that even though mortgage workouts, short sales, and foreclosures can result in income tax consequences - - - special tax relief provisions can greatly assist distressed borrowers.

The new section contains a diversification of useful data and worksheets.

Borrowers who have their mortgage debt reduced or elimated will receive Form 1099-C from the lending institution. By carefully examining the Form 1099-C they should be able to discern if the forgiven mortgage debt amount is properly reflected.

Michael Lozar
Bellingham Mortgage Advisor

Bellingham annual 'Neighbors' Report

2007-09-18T12:03:40Z

The Bellingham Herald has released its annual community report 'Neighbors'. This is a wonderful way to quickly discover the character and charm or communities surround Bellingham.

A quick synopsis of some of the neighborhoods:

Alabama Hill: You probably won't find too many of your neighbors singing Sweet Home Alabama Lyrics by Lynyrd Skynyrd. Saturated with many beautiful parks, spectacular bay views, and the Railroad Trail this is a popular community for families looking for a ten-minute commute to Bellingham.

Birch Bay: Fast developing community with many waterfront homes and pockets of high-priced custom-built homes. It was primarily a resort and camping area until the recent building boom for affluent retirees and families.

Blaine: Nestled in the NW corner and bordering Canada, this community will see a lot of border crossing activity when the 2010 Winter Olympics arrive just north of here, in Vancouver B.C.

More reviews to follow later.

Michael Lozar
Bellingham Mortgage Advisor

Creative Ways To Fund a Home Down Payment

2007-09-12T13:05:01Z

Remember the 60's song 'Tighten Up'?

Lenders are tightening up loan qualifications for borrowers. A high FICO score and large down payment are your strongest allies to obtaining a home loan.

Here are three alternative creative ways to find those down payment funds (consult with your tax preparer prior to taking any action).

Tap Into Your IRA
Borrow Against 401(k) Plan
Family Gifting

Tap Into Your IRA

You can withdraw up to $10,000 from an IRA for a down payment on your first home. The withdraw is penalty-free; however the amount withdrawn will probably be subject to federal income taxes. If you are in a low tax bracket, this may be a good option for you!

The $10,000 is a lifetime limit. You must use it within 120 days or incur tax penalties. Your tax advisor can provide more details, or contact the IRS (800-829-1040, www.irs.gov)

Borrow Against Your 401(k)

Most companies permit loans against its 401(k) plans. Generally you are permitted to borrow up to 50% of your vested balance. The IRS states that the loan must be repaid within 'a reasonable amount of time.'

Big caution on this option: if your employment ends with that company, the loan must be paid in full, usually within 60 days. So don't even think about using this down payment option if you plan on quitting or retiring soon.

Family Gifting

Family members are permitted to receive $12.000 per year, per person, and not have be be concerned about the federal gift tax. This means you don't have to declare the gift as income on your federal income tax.

Be sure and obtain a letter from family members (usually parents or grandparents) stating that the monies have been 'gifted' to you, and your spouse, and are not to be considered as a loan requiring pay back.

Hope you found these suggestions helpful, and again have your tax advisor crunch the numbers for you!

Michael Lozar
Bellingham Mortgage Advisor

FTC Warns Over 200 Mortgage Companies - Deceptive Advertising

2007-09-11T16:19:34Z

The Federal Trade Commission issued warnings to mortgage brokers and lenders, regarding inappropriate advertising claims about mortgage interest rates and terms (or lack of full disclosure).

Seems as if a small number of mortgage brokers constantly embrace a flippant attitude, thinking they are immune from the Truth In Lending Act (TILA). Unfortunately it only takes a little media attention focused on a few bad apples to paint a broad image of the whole industry being saturated with 'Snidley Whiplashes'.

I wish consumers would spend more time educating themselves - - - there is no mortgage fairy that will magically dispense a low-rate loan, with wonderful long-term terms, if you don't have a great FICO score, some assets, and decent employment history.

I have patiently enlightened numerous potential borrowers, regarding why they need to thoroughly diagnose a loan package proposal for terms beyond the teaser rates. I wish more of them would have taken the time to educate themselves and worked with an ethical mortgage advisor, instead of fleeing and being ensnared by terms they didn't fully understand, and were too proud to deeply inquire about the consequences.

Michael Lozar
Bellingham Mortgage Advisor

The Incredible Shrinking Commerccial Paper Market

2007-09-07T11:19:32Z

A few days ago I commented on the Seattle-King County snafus regarding "commercial paper" and the subsequent loss of millions of dollars.

Reuters has an alarming article on the shrinking commercial paper market - - - a 13% decline in the past month. So why should you, as a real estate and housing professional, be concerned? The credit squeeze (Federal Reserve reflects fourth straight weeks of heavy decline) impacts business expansion and short-term lending. If the perception that credit is no longer available prevails, panic sets in. The DOW is down over 230 points this morning!

This is not just a good ole USA problem. Subprime loans were bundled together with other loans and sold as securities around the world. Britain's third largest bank had to issue calming news blurbs last week as their exposure to USA subprime loans in their portfolio became public.

Let's hope that calm prevails, and more honest assessments & disclosure of risky mortgages are openly shared.

Michael Lozar
Bellingham Mortgage Advisor

Is Your City Safe - From Subprime Implosion?

2007-09-06T00:32:12Z

Read an interesting, and unsettling article in the Seattle Times today about the likelihood of Seattle-King County government losing an estimated $8 million on just one investment!

King county officials have ceased purchasing "commercial paper" investments while the current subprime market risk are analyzed.

So, what is "commercial paper"? Basically it is a corporate IOU, generally considered to be safe and secure. Money managers purchase these short-term interest-earning securities in large dollar amounts. For a more detailed explanation of "commercial paper", check out the Wikipedia site: commercial paper.

I still am very apprehensive about the long-term fallout from subprime loans. I'm treading cautiously in the stock market and will promptly convert more securities to cash if things get worse - hopefully they won't.

Michael Lozar
Bellingham Mortgage Advisor

Get Smart - Mortgage Professor Site

2007-09-02T23:56:28Z

Read any good newspapers or periodicals regarding the credit meltdown. and subprime mortgage woes?

Want to know what all those theories and terms mean? Well fret no more! Just mosey on over the the Mortgage Professor Web site and get educated.

The Mortgage Professor's Web site: http://www.mtgprofessor.com/ contains numerous resources to make you, or your borrowers, savvy about the cornicop1a of mortgages topics.

Some items you will find of interest:

Prepare to Be a Borrower
Educate Yourself
Analytical Tools (calculators & spreadsheets)

Happy hunting on your vocabulary and mortgage concept trek.

Michael Lozar
Bellingham Mortgage Advisor

IndyMac Suspends Alt-A Jumbos

2007-08-24T16:41:58Z

Wow,

This lending squeeze is going to impact a lot of people trying to sell high priced homes. With FHA limits in the $400,000 range and now Indy Mac pulling the plug on Alt-A Jumbo loans, I would be sweating if I was a builder, Realtor, or seller with high priced homes.

Here is the email message I received a couple of hours ago:

IndyMac has suspended their Alt-A Jumbo and Alt-A No MI Jumbo product lines. As a result these products will no longer be offered in the Optimal Blue system.

Optimal Blue is the search engine program we use to search dozens and dozens of lenders at one time. I love the program because it returns a list of loans, from numerous different lenders, on one Web page.

Michael Lozar

Bellingham Mortgage Advisor

Drive-by Identity Theft

2007-08-22T18:47:11Z

Identity theft is a devastating crime that usually commands hundreds of hours, and thousands of dollars, to hinder the thiefs. The thieves are implementing new techniques of snatching purses, cell phones, laptop computers, etc.

The link below is to a Broward County Florida Sheriff's video showing daring daylight thefts. Video surveillance tapes caught thieves engaged in drive-by burglaries.

http: //www.sheriff.org/videos/psa_cartheft.html

Summary of the video: Don't get distracted while fueling your vehicle!

When getting gas, and especially when going in to pay for fuel, roll your vehicle's windows up, lock the doors, and don't leave any valuables in easily accessible areas.

Michael Lozar

Bellingham Mortgage Advisor

Plumbing Assistance Web Sites

2007-06-07T17:05:41Z

After tackling a couple of kitchen sink replacements, garbage disposal replacement, and installing a dishwasher, I thought you might enjoy some time-saving tips and techniques from a very resourceful Web site offering good advice and places to purchase plumbing:

http://www.theplumber.com/
The Plumbing Internet Site for Plumbers and DIY

You will find plumbing FAQs, advice sites, plumbing care, plumbing repair, and a lot more!

Want to have your seller's home pass the inspector's and buyer's scrutiny? Well then, install some snappy new fixtures and fix those leaks!

Michael Lozar is a registered loan originator, and occasional weekend handyman, serving Whatcom and Skagit counties.

Fair Issac to Revise FICO Credit Scoring

2007-06-04T14:15:53Z

I was reading an interesting article in The Seattle Times about the practice of people getting instant credit repairs, to qualify for lower interest home loans.

The article 'Credit scorer aims to end 'rental' of good ratings' notes how people are temporarily added as authorized users on credit cards of people with excellent credit.

This mortgage loan loophole needs to be closed and it appears that FICO will be clamping down soon!

Michael Lozar is a residential mortgage and commercial loan officer in Bellingham, WA state.

Paint, A Little Splash Will Save Time and $$$!

2007-05-24T16:10:11Z

My wife and I are preparing to paint the exterior of our home this Memorial Day weekend (better than fighting motorist & ferry traffic).

We have quite different opinions regarding the optimal hue for the home, gutters, and trim. So many colors to choose from! So, how did we resolve our theory of illusion? Fortunately Sherwin-Williams offers quart-size samples for only $5.00 USD.

So we purchased four sample colors and painted large swatches of peach, comical coral, sky blue, and teal, on one side of our home. It is now festooned with splashes of color, almost enticing people to come in and audition for clown school!

Fortunately we painted the side of the house with a high six-foot four-inch fence, so the only people who can view our masterpiece are the next door neighbors. They are being a good sport (actually painted a second coat on two swatches).

My point is that we are so glad we only spend $5/sample instead of painting the entire home based on a tiny paint sample chart, then finding our the color looked terrible.

So, prior to spend hundreds of dollars and dozens of hours on painting your home, pickup a few $5 sample quarts and wait for two coats of paint to dry before committing to your ideal color.

Michael Lozar

Michael Lozar is a registered mortgage originator in Bellingham, Washington.

Redfin Empowering Consumers & Hurting Realtors?

2007-05-21T12:33:31Z

If you are a Realtor, are you terrified of Redfin? Well if you are pondering what, or who, Redfin is, go check out their Web site http://www.redfin.com/stingray/do/start and see if they have an office in your area.

It is an online real estate service that permits:

Searching MLS Listings
Tour Homes Online
Make Offers & Buy Homes Online
Sell Homes Online

Their high technology, low commission structure is striking fear into the hearts of Realtors! The biggest challenge is the rebates given to buyers in some geographic areas. Two thirds (2/3) of the buyer's commission is refunded to the home buyer!

The CBS television show '60 Minutes' broadcast a 14-minute segment of the Redfin company. The broadcast mainly focused on the Seattle area. To view this broadcast, go to

http://www.cbsnews.com/sections/i_video/main500251.shtml?id=2796105n

If you are a Realtor, what fantastic personal service are YOU providing, that will overcome objections from people insisting on paying lower commissions? Remember, price is only an obstacle when value is not perceived.

Michael Lozar

Michael Lozar is a registered mortgage loan originator in Bellingham, Washington.

MEW-MEW Said The Bear!

2007-05-18T17:29:39Z

Since when does a bear say MEW? You probably associate the word MEW with cute, fuzzy adorable kittens, not a bear.

MEW stands for "mortgage equity withdrawal," meaning the cash that homeowners can extract by refinancing their houses, or getting home equity loans. Up until last year, as home prices have risen and interest rates have stayed low; MEWs had been running at a record pace.

Now that home prices have stopped rising, and in many markets are flat or falling, MEW has fallen off. And the bears think that's going to be enough to trigger a recession.

With housing prices off, and subprime lenders in disarray, the bears are growling that the American consumer won't have a source of ready cash anymore. No cash, no spending. No spending, no GDP growth. No GDP growth, no bull market.

In fact, some bears are saying that without MEWs, we wouldn't have had an economic expansion or a bull market at all. The stock market recovery, according to them, has been a debt-financed spending binge made possible by MEW.

What do you think? Are the bad MEWs bears wrong?