The dramatic urgency of now is one of my favorite expressions. Act now, based of the knowledge you have garnered from your past, to affect your future. Waiting until the future to act means you've left it until too late.

I have always lived my life by this guiding principle. Until, well, now. If one more talking head or bar stool politico says one more time that we need to act now my poor little head is going to explode. I do NOT respond well to being pressured.

If you don't buy this car today, someone else might. Really? I couldn't figure that out myself? I'll take my chances.          

If you won't go out with me Friday night someone else will. Oh, okay. Have fun with that. I sure feel sorry for her.

Call now and we'll double the offer but only if you call in the next ten minutes. Are you serious? I really won't get BOTH my Sham Wows for 19.95 if I call, lets say, tomorrow?

Do you see where I'm going with this? Our "leaders" pushed TARP down our collective throats because we had to act now or terrible things would happen. Guess what? We have TARP and terrible things happened anyway. Not the least of which is TARP. I'll bet it would be a lot easier to stabilize the financial sectors if we hadn't rushed into TARP and now have to fight the public outrage over that mishandled abomination. Hurry up, if we don't give the auto makers loans they will go out of business! We have to act now or millions of jobs will be lost. Uh, guess what? All indications are that they ARE going to fold, millions of jobs may be lost and all that bailout money will go up in smoke.

I don't see anything better for this affordable housing bill or the so called "cram down" bill. Are you kidding me? The major problem right now is the credit freeze. We really think that passing a bill that essentially tells anyone lending mortgage money that they may not have recourse to collect the full amount of that debt is going to make mortgages MORE available? MORE affordable? I say it will take lots of lenders out of the game and the ones who are left will increase their costs and fees to cover future losses. Well that should certainly help the housing markets. Certainly make housing more affordable.

The dramatic urgency of now needs to be put on hold for a few days. I could be completely wrong about the above but I don't see how waiting a few days, tapping a few more people for ideas and really taking the time to think things through is going to hurt. I watch 3 news programs in the morning, Morning Joe, Fox and Friends and the Squawk Box. I'd like to think those folks are smarter than me but the only thing they seem to agree on is that we are not acting fast enough. I respectfully and wholeheartedly disagree.

I feel like we, as a country, are on a first date and are being pressured to "go all the way". Do we really want to go all the way on the first date and be labled "fast"? Or do we want to be the "good girl" who values herself and waits. At least until the second date...

Hal stood at the kitchen window looking out over the back yard. In three years this was perhaps the first time he had stood here. The kitchen was Kerry's domain. He ruled the small garage and the yard, Kerry the kitchen and Lisa the living room that was always cluttered with her toys.  As he stood there he thought of the day they had moved in. Kerry had been six months pregnant and unable to lift anything heavy. She had glowed as she ordered him around. This was their dream. To move out of the cramped apartment, buy a place with a yard, get a dog, raise their daughter. Kerry said it was one of the best days of her life. He had thought so too.

Hal heard Kerry walked behind him but he didn't turn to her. She cleared her throat as though she were going to speak but she said nothing. Perhaps, he thought, she had nothing left to say. As the kitchen door closed behind Kerry, Lisa came running in. She had none of her mothers reservations. She threw her little arms around Hal's leg. "Daddy, going to Nana's now?" she asked. "Yeah, sugar. I'll see you at Nana's a little later. I got something I got to do first" he replied. Kerry came back into the kitchen. "Well, that's everything I guess" she said. Hal didn't answer, he couldn't. She stared at him, willing him to speak but it was Lisa who broke the silence. "Buddy going to Nana's?" she asked. Hal turned to Kerry, helplessly. "Come on Pumpkin, Buddy's goin' with Daddy. We gotta get moving." Kerry said to Lisa. Sensing something was very wrong, Lisa started to cry. Kerry picked her up and with one last look over her shoulder, walked out of the house.

Hal stood at the kitchen window looking over the back yard. His big black dog was running around chasing leaves. He couldn't understand how it had gotten to this point. He felt paralyzed. Empty. Ashamed. He forced himself away from the window and slowly walked out the door. He turned to lock it but thought what the hell for. He opened the door to his truck and called to Buddy who came running and happily jumped in. Hal was numb as he drove. His mind just circling around, trying to figure out how it had all gone so wrong. Him and Kerry, they hadn't wanted much. Just a little place to call their own. They knew it would be tight for awhile but it always was when you're staring out. They'd figured he get into the union and get better hours and maybe a raise to help out. When the plant laid off a bunch of the guys he knew it was going to be bad so he started to look for more work. It hadn't worked out. Then Lisa got sick and Kerry had to cut her hours to take care of the baby. Then the loan payment went up. Gas prices went up. They just couldn't keep up. The bank had tried to help but in the end it wasn't enough. They had nothing left, maybe not even each other.

He pulled up in front of the grey, cement building. Just sat in the truck with his arm around Buddy. His last failure. Kerry's mom was allergic and they wouldn't have enough room for him in the basement anyway. Buddy licked his face, wondering why they weren't getting out. He had called ahead. Made the arrangements. So he got out and Buddy followed. He took his leash and walked through the door. Handed the leash and papers to the boy behind the counter and tried to shut his ears to the sounds of all the other dogs.

                                                          ~~~~~~~~~~~~

Shannon was out for her daily run. Even though the day was overcast and damp she couldn't keep the smile from her face. It was a good day. No, a great day! She was three miles into her run but had never felt better. The graduation had been wonderful. Her dad had been so happy that even a week later she could feel the warmth of his hug as he whispered "A nurse. Your Momma would have been so proud". She had worked so hard for the degree that sometimes, late at night she wondered if it was all going to be worth it.

Shethought, as she ran, about the call from Brad last night. His cousin worked at the bank and knew of a property that was perfect for them and hadn't even gone on the market. Brad said that it had belonged to a young couple who just couldn't keep up with the payments. They'd kept it up real nice but the bank had to take it back. Brad's cousin said the family was moving out in the morning and if they were quick they might get a good deal if the bank didn't have to pay realtors and such. Brad said it wasn't nothing special, just a little house with a big back yard. Then he said "you know if we had a back yard you could get that dog you're always after me for". She'd gotten so excited that they had driven past it last night even though the folks hadn't moved out yet.

The minute as Shannon saw the house she knew it would be perfect. She was thinking of paint colors as she cut across the parking lot of the Humane Society. She stopped for a minute to stretch and her eye was drawn to the only car in the lot. A big man sat in the cab of his truck, hunched over the wheel, shoulders heaving. It was such a sad sight she almost forgot about the house, the dog, everything. She wanted to go over and ask if there was anything she could do to help but he seemed locked in his own private world of sorrow and she didn't want to intrude. Her cell phone rang as she was thinking on what to do. It was Brad, calling to tell her that his cousin had gone to his boss and the boss was willing to sell them the house at the price they'd been thinking of. While they were talking the truck pulled out of the lot. She told Brad she'd be home soon so they could get started on the paperwork and take a look at the inside just to make sure.

Asshe started to run her thoughts turned back to the man in the truck. She couldn't help him, she thought but she sure as hell could help a dog. She knew exactly the kind of dog she wanted. A big black dog, one who could keep her company on her runs and one who would really appreciate the big back yard. As she passed the grey, concrete Humane Society building she thought "I'll be back tomorrow and spring one of you". Her landlord wouldn't mind if it was only for a little while...

I'm not complaining. Really I'm not. I'm just lost or confused or both.

5) Why can I organize my associates but not the blogs I subscribe too? It makes no sense. My list of blog subscriptions is varied. I subscribe to some because I work with them (Bill), some because the author usually makes me laugh (JL), others because the author is very informative(Scott).It's very vexing that I can't put them into categories.

4) Speaking of associates and blog subscriptions, why can't we anonymously delete or unsubscribe? Come on, you know what I'm talking about. Someone added you as an associate and you don't want to be associated with them for whatever reason but feel no real animosity to them and don't want to hurt their feelings. Or after reading a particularly good post you subscribe, only to find out it was a one off. Most of what they post is drivel. How do you unsubscribe without saying "Hey you! You bore the heck outta me"! (Sardi)

3) The points. The freaking points! I'll bet there is a very good explanation for it but the blogging point system is over my head. Not hard to do since I'm only five feet tall but still... Here's an example: Total points 475. 68 comments of which 9 were from the author. Post was featured. Total points 517. 38 comments of which 12 were from the author. Post was not featured or reblogged. I just don't get it unless the AR gods are giving out consolation points??

2) Feature me???I know this has been blogged to death already but I still don't get it. Now the AR gods will probably take away my meager supply of pretty gold stars for questioning it but it still makes no sense. One person gets featured twice in one day, another never gets featured at all. Similar content but unequal gold stars. Again, systems been good to me so far but it seems like a game the AR gods play to drive the rest of us crazy.

1) Why are Loan Officers, Inspectors, VAs etc the red headed step children of AR? If you are not a Realtor you know what I'm talking about. We don't get any cool tools or toys. Maybe this is just a microcosm of the industry as a whole in which we non Realtor types are considered hangers on?? Why isn't there a place for loan referrals or leads? We Want TOYS!

Yes folks, I Beth Forbes, have a solution to the housing crisis! I'm a genius. The problem in a nut shell is over supply coupled with under demand.

I read an article a few weeks ago, Fear of Financing, written by Janet Guilbault that I felt accurately described part of the cause of the current crisis. The people who can qualify to buy homes are afraid to finance, afraid they don't qualify, afraid they don't have enough money for down payment and closing costs. The people who qualify are also afraid to buy, afraid that they will over pay, afraid that the bottom hasn't been reached, afraid they may lose their job.

So here is my super duper, genius plan. Rather than give a ridiculous amount of money towards rate reductions or throw good money after bad bailing out delinquent homeowners who will never NOT be delinquent home owners (until they become renters) lets lend some money to the only people who are not afraid!

I'm talking about real estate investors. Before you get all crazy and tell me that these are the people who got us into this mess, hear me out. I'm not suggesting lending money to speculators, people who can't verify their income or people with questionable credit ratings. I say, let's get a government program together that lends money to people who already own multiple properties, who have excellent and deep credit who actually WANT to buy up the over supply of inventory. There are a large number of investors who own multiple properties that actually produce income for them who would just LOVE to buy up some of the great deals available right now but are hamstrung by current lending guidelines that say they can't own more than 4 financed properties.

Here are the guidelines. 700 credit score (if you have multiple mortgages on your credit and can maintain that score you're doing great). Must have 5 or more years experience as a multiple property landlord. Must put 20% down on a single family or 25% down on a 2-4 unit. Subject property must debt service at 1.2. Total property portfolio must debt service at 1.0. Must have 6 months liquid cash reserves. Must be able to fully document income and have a total back-end ratio no higher that 45%. Must pay an upfront "loss reserve" payment similar to the upfront MIP on an FHA loan and monthly "loss reserve" payments much like monthly MI.

There are a LOT of people who would qualify for that, would love to take advantage of it and those people would start clearing out the over supply of inventory. Any plan that does not include provisions for these people is underutilizing a private sector solution to what is becoming a government problem. While I understand that this would still be a government subsidized program, I don't see how it's much different from the FHA.

The problem with home values is that banks continue to foreclose and there aren't enough buyers to keep up with the supply. Rather than subsidizing the buyers that already exist ( like the rumored 4.5% rate subsidy), let's make a whole new pool of buyers!

See, told you I'm a genius!

For those reading this who do not know my sense of humor please understand that this whole post was written with tongue firmly in cheek. (although I DO think it's a heck of an idea)

Beth Forbes Your 24/7 Loan Officer (484) 239-2014

Call me for all your mortgage needs. Areas of service PA, NJ, NY, CT, DE, MD, VA, SC, FL, MI and IN

Property investment for resale has been glorified in shows like "Flip that House", in the ultimate sellers market a few years ago people with very little experience were making big bucks doing this.

Things have changed a little since the days when you could buy a house, throw some paint on it and sell it for a big profit. The good news is that with all the bank owned properties and short sales on the market, good deals are everywhere. Now the investor is taking advantage of the market form the buying end of the transaction rather than the selling end.

Here are 10 tips for the new property investor or even the seasoned investor to consider:

10) Get bids on the work you will need to do.  Even if you have done this sort of thing for a long time, it is always a good idea to talk to your subs before you make an offer rather than after you have purchased the property. Costs are rising in all areas and a job that might have cost one price a year ago may have a completely different price tag today.

9) Figure out your acquisition money.  If you will need to obtain financing for the purchase of the property or any part of the repairs it is good to know what types of financing are available before you get to involved in the project. Typically, the mortgage requirements are much stricter for investment properties. Better credit and higher down payments are normally required. Closing costs may also be higher and all of these considerations affect your total capital out lay. The good news is that there are loans for investors that will allow you to finance a portion of your construction costs and this can be a big help with the cash flow of the project.

8) Talk to a Home Staging Consultant.  Selling vacant properties is a challenge. A good Home Staging Consultant will have some ideas for how to stage the home so it seems welcoming and appealing. This can definitely give your property a marketing edge and it is a good idea to budget for it.

7) Have a "heart to heart" with your Realtor. The worst mistake many investors make is doing the wrong improvements. Your Realtor can help guide you make choices for improvements that will increase the value of your property without over improving it. The other thing you need to carefully consider with your Realtor is the marketing time after you finish the project. What can you realistically list the property for, what marketing time can you expect at different price points and what will your carrying costs be during that time.

6) Have a contingency reserve.  Something will go wrong. It always does. Plan for it by having a percentage of your overall budget set aside for when it does.

5) Find out what type of financing your property qualifies for.  Your property may be located in an area that has special financing available for buyers. Many urban areas have community development loans that help buyers purchase homes in those neighborhoods. Rural areas may qualify for USDA 100% financing. If your property is in an area that has special financing available use that information to help market your project.

4) Get an appraisal.  This may seem like a needless expense since your Realtor is advising you on market value but it can give you and your potential buyers additional peace of mind. There is also another reason and this has to do with #5 and # 3 so pay attention.

3) Make sure the improvements meet FHA requirements and bring the property up to FHA standards.  Not every property qualifies for FHA, multi family homes or homes at the higher end of the price scale may not qualify (please talk to your mortgage professional about this) but a large number of buyers in the current market are using FHA insured funds. Your property will stand a much better chance of finding a qualified borrower if it meets these standards. A certified FHA appraiser will be your best source for this.

2) Keep all your recipts.  There are a number of reasons to do this. Of course you want to keep track of exactly how much you have put into the project for your own records but increasingly, mortgage lenders for the buyers want to know as well. If you keep these organized and in one place, if the buyers lender want to see them it will be painless to get them copies. This is even more important if you have more than one project going on.

1) TAKE PICTURES!  They say a picture is worth a thousand words and when it comes to modern day underwriting this is proving to be true. Pictures taken before you start can often help tremendously in explaining increases in value. Typical underwriting says that the value of a property is only what the most recent purchase price plus the actual cost of improvements total if the property has been owned by it;s current owner less than 12-24 months. You can have all the augments you want about sales price vs. value but a picture of a trash filled, dirty, damaged property will go a long way to helping you win that argument.

If you have any questions about financing for investment properties please feel free to contact me any time.

I woke up and felt a nameless fear. I stared around my bedroom in the early morning gloom and all seemed as it should be. Partner already up, I could smell the coffee, dogs still in sleeping, I could hear them snoring, no ill effects from my long run the day before, I flexed and all parts seemed to be operational.

I stumble out to the kitchen. The Business section of the morning paper was next to my steaming cup of coffee. Bail outs, crashing markets, massive layoffs, blah, blah. Same old, same old. My sleep addled brain couldn't put a name on the feeling of dread lingering in the back of my mind but it was there. A cold finger caressing my spine, causing me to look over my shoulder and wonder what is coming?

Shake it off, shake it off. Nothing a second cup of coffee and a hot shower can't banish. Off I go. Shower is steaming, coffee is precariously perched next to curling iron, all is well and then I see it. Hanging innocently from the back of my closet door, the suit. The grey one. But all my suits are grey (or black) This however is the suit,  the one that that gets trotted out for interviews, none of those scheduled, the one I wear to closings, unfortunately none of those schedule either, and the one I wear when I cold call.

AAHHHHHHGG! COLD CALLING! Realization poured down on me like being caught in a storm. I nervously checked my schedule. Yup. Today I had scheduled myself for 3 hours of cold calling. 3 hours of driving around, showing up without an appointment, trying to get past the dragon lady at the desk to meet with Realtors.

I hate this. Truly, honestly hate it. I prefer to schedule appointments with people at a time that is convenient to them. I prefer to give an out line of what we will talk about, what value I can provide. I don't like people dropping in on me and I hate to do it to other people.

As I dried my hair and desperately looked for a pair of hose without a run I made every excuse my newly caffeinated brain could think of, old school way of marketing, rude and intrusive, ineffective use of time, no one actually goes to the office anyway, if they thought I could be of service they would have returned my calls.   I had myself just about talked out of it. The dread was receding with the thought that I wouldn't have to do this when I remembered the sales trainings I used to give. Telling people to step out of their comfort zone, that nothing replaces face to face meetings, that persistence coupled with a valuable service will equal success.

Time to buckle up your chin strap Girlie, you're going in.  I didn't walk out of any office with a handful of leads, I didn't expect to.  I did make a few contacts and had several nice conversations, even with the dragon ladies.  This is what it's all about.

When you wake up with that feeling of dread, knowing you will be stepping out of your comfort, take heart. I'll bet it won't be as bad as you think!             

and no word of sanction upon my being. I am the warrant and the sanction. ~Ayn Rand Anthem

Just when you least expect it, you open your email and you see a contact from Active Rain. This normally means good things. A referral, a question one of the members needs help with, the opportunity to earn business!

Sometimes though, it's the dreaded MEME. This one came at me from an unexpected source. A new associate, Eric McGowan, had tagged me. I quickly responded to him that I would get to it soon but tragically I have NO BOOKS in my new office. I went home that evening with every intention of completing this from my home office but "dinner happens". This has been going on for several days, meaning to do the MEME, not dinner.

Today I got tagged again, from a more expected source, Jennifer Bukaty. For some one who reads as much as I do, this should be easy! Still no books in the office and since my reading lately veers from Chick Lit to hard core Economic books I'm not sure I'd want to bring any in.

What really is a MEME but a request  to share information about yourself? So rather than following the page 56, third sentence guidelines I'm going off the reservation and am going to share part of something that is, in paperback, 56 pages long.

"That which you call your soul or spirit is your consciousness, and that which you call 'free will' is your mind's freedom to think or not, the only will you have, your only freedom, the choice that controls all the choices you make and determines your life and your character." This is part of John Galt's speech in Atlas Shrugged by Ayn Rand. I can't think of a book I more admire or one that is more appropriate in this time of bail outs and hand outs, in this age of entitlement.

This may not be in the proper format but it will certainly tell you something about me. MEME

Many people have told me recently that I'm crazy but I think I have finally come to my senses. It's been a long year with lots of ups and downs.

This time last year I was made an offer I couldn't refuse. I was offered a position as the Eastern and Southern Region Sales and Operations Manager for a wholesale lender. I was honored to be offered this chance when jobs were scarce, especially in the mortgage industry. This job gave me the opportunity to work in a different segment of the industry, behind the scenes if you will. It offered me the chance to work on a national level and enhanced my knowledge of secondary markets. I remain grateful for the faith that was placed in me and for the wonderful education I received. One of the things I loved about this position was being able to talk to mortgage brokers and lenders all over the country. These are my brothers in arms, their stories are mine.As much as I enjoyed the camaraderie, I felt like something was missing.

I posted my first blog entry on Active Rain in April of this year. I became addicted to the community. I am not always as Active as I would like to be but I'm trying. What do I love about this community? I love signing on in the morning, looking at the dashboard and knowing that I am connected to people just like me. I love reading the stories of good closings and the challenging ones, hearing your horror stories and your triumphs. I love seeing the advice given and the advice asked for, seeing the community help each other and heck, I love the occasional squabble.

The more Active I became the more I realized how removed I was from what I really love, how far I really was from being in the thick of things, how long it had been since I had qualified a borrower or attended a settlement. I missed all of that so much but I was apprehensive to make another change. As we all well know, this is a tumultuous time to be in the real estate industry and any change is nerve wracking. If it ain't broke, don't fix it.

Sometimes ya just have to jump. With the support I have received from the Active Rain community (those who knew I was making a change and encouraged me, those who have never heard of me but who's stories inspired me) I jumped. I resigned my prestigious (and salaried) position to become, once again, your 24/7 loan officer.

I'm taking this show on the road, I'm takin' it to the streets. If you are a member in the Lehigh Valley, expect a call from me. Heck, if you live in the Lehigh Valley and I happen to catch your eye in the grocery store expect to be handed my card. If you are one of my many on line social networking associates, don't forget I do mortgage loans for a living, I'm very good at what I do and I'm available to discuss your needs or those of your clients.

 I may be crazy but I've never been happier!

Now that's the 85 dollar question, isn't it? There are many wonderful resources that explain the information lenders need to pre-qualify and pre-approve you for a mortgage loan. Call me if you have any questions about this or need to be preapproved. Your mortgage lender reviews and verifies the information you give them and then they determine a payment amount that you qualify for. They will give you an idea of the loan amount and purchase price range you should be looking in.

This payment amount that you qualify for is your total payment amount. This amount includes your repayment of principle, your interest payment and your payments for real estate taxes, homeowners insurance and mortgage insurance as required. This is very important to understand since unless you have a specific property in mind, have already gotten the tax information from your Realtor and a quote from your insurance agent this can impact the amount of loan you qualify for. Huh???? Your lender already told you the payment you qualify for so why would the loan amount and consequently the purchase price change?? I'll let you in a little secret, unless the lender knows the exact tax and insurance payments we (gulp) guess. Please work closely with your Realtor so you are targeting neighborhoods where the combination of price and tax amounts will fit in with what you qualify for.

Now you know what you qualify for it's time to think about what you can afford. These are often two very different amounts. Your lender knows what your debts are but they may not know that you pay hundreds of dollars a year so your daughter can be a cheerleader or that you have an expensive gardening habit. Sit down and write out your monthly and yearly expenditures, build in regular savings as well as an emergency savings and add what your lender tells you that you qualify for in a housing payment amount. You might be shocked to find yourself left with a negative number when you subtract that number from your take home income. When you are figuring out what you can afford be honest with your self. Don't figure out what you can afford based on a raise or promotion you haven't gotten yet, don't discount your "fun" money and most importantly don't short your savings amount.

I will leave you with this, only you know what you can afford. Unless you think you can afford more than you qualify for. Don't be pressured by your lender, realtor, cousin, pastor or anyone to spend more than you can afford. Don't buy with your heart, buy with your head!

There has been so much said recently about Patriotism, Heroes and being a true American. I have kept my mouth shut (mostly).Election Day is really the day we celebrate being Americans. The 4th of July is a great picnic and the fireworks are always appreciated but Election Day is the real celebration.

The talking heads and pundits all have their take on what being a true American means. The armchair politicos and bar stool experts will tell you what they think Patriotism is and who they think is a Hero.

On Election Day my mind turns to someone I consider to be a Hero, a Patriot and a great American. He served in Vietnam, by choice. I'm sure he could have come up with some type of deferment but he didn't. He served his country because he felt it was the right thing to do. He came home from the war and was so ill treated for his service that he hesitated to tell people where he had been. This did not sour or embitter him to his country, he remains proud to be an American.

He owns a small business, has helped many people get started in their careers and has always paid his taxes. According to some, that alone makes him a Patriot although I'm not too sure. He is involved in the political process as an informed voter. He is not afraid to argue a position even if it is not popular. He is not overbearing in his opinions and is always willing to listen to the other side.

This man taught his children to be fair, to be aware and to be unafraid to stand up for what is right. He taught his children that liberal is not a dirty word and neither is conservative. He taught his children that every vote counts and even one person can make a difference. He practices what he preaches and in my mind this makes him a hero.

In a time when there seems to be a spin on everything from the environment to a candidate's wardrobe it's nice to know there are real heroes we can count on. We may not be able to vote for them but we can count on them to vote with us.

Thanks Dad!