Bill Nazur--Mortgages and Advice Across America

I'm NOT buying the SHOCK! Lenders make more money on foreclosures than short sales!?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sat, 07 Nov 2009 23:10:18 -0600

A great series of articles to consider......

I have to point out however that a basic tenet of a short sale is that the consumer is TYPICALLY 3 months behind, often recommended by the lender AND/OR the realtor/loan modification consultant, creating a loan that is no longer PERFORMING, which thereby accelerates countless advances, accrued interest, and a severe drain on cash flow to the lender.

Secondly, if an insurance company (MI) is covering the loss, than I do understand why a bank would choose NOT to approve a short sale. As industry professionals, while we may not like this, we must understand that each short sale transaction today is as unique as a human fingerprint.

What say you? Do you like to finance short sales? Even handle them?

I'm curious as to your feedback.....

Via Pacita Dimacali - e-PRO, SRES, CDPE, MBA East Bay, North CA real estate (Gallagher & Lindsey):

Lenders make more money on foreclosures than from short sales or loan modifications. That's what Steve Harney conveyed in a seminar. He caused an earthquake in San Francisco

When loan modifications are turned down, the next thing we attempt is a short sale. And we know that lenders turn over the short sale accounts to loan servicing companies who make our lives hell getting short sales approved. As such, we should know that these loan servicing companies make MORE money by letting the properties foreclose than to approve the short sales OR the loan modification.

RUMBLE...GRUMBLE...CRIES OF DISMAY!

Did he just confirm what we were afraid of?

So I researched this topic and found a few articles worth reviewing. How did I miss these? Was I under a rock in a desert?

CONSUMERLAW.ORG REPORt ON "Why Servicers Foreclose when They Should Modify And Other Puzzles of Servicer Behavior"

DAILY PRESS headline. Oct, 30 2009. Do Mortgage Lenders Make More Money when a Loan Goes iInto Foreclosure?

HUFFINGTON POST. Oct. 21, 2009, Foreclosures Are More Profitable Than Loan Modifications, According To New Report

Washington Post. July 28, 2009. Foreclosures Are Often In Lenders' Best Interest. Numbers Work Against Government Efforts to Help Homeowners.

ThinkGlink. October 21, 2009. Loan Modification Help: Why Lenders Are Slow To Provide Loan Modifications

Dayton Daily News. Oct. 17, 2009. Drop in foreclosures called "very scary". Lender's actions show they think properties are not worth pursuing.

Mortgage101.com. October 23, 2009. Mortgage Companies Make More on Foreclosures Than They Do Modifying Existing Loans. (This blog refers to the news article on Huffington Post)

FLASHBACK: Huffington Post, June 8, 2009. Short Sales: Banks Blocking Way Out of Foreclosure Crisis

FLASHBACK: Huffington Post, May 15, 2009. Short Sales Stories. Lenders tend to stick with more familiar foreclosure process, losing money for everybody.

UPDATE: Huffington Post, November 2, 2009. Homeowners: "Hey Congress, Get Off Your A**"

KNOCKING OURSELVES OUT TRYING TO HELP

So are we engaging in self-flagellation helping our distressed clients with their short sales and loan modification?

Are lenders really more likely to foreclose?

Are the short sale servicing companies really trying to help?

Or are they stalling and withholding their help because they know their leaders would rather have the property burn into foreclosure?

Is there no resolution in signt?

There oughta be a law!

Listing Realtors Beware: Threatening a Lender with a Notice to Perform? Please.....talk to the Buyers Agent....

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sun, 08 Feb 2009 18:05:21 -0600

I guess over the years, you can say that you've seen it all, heard it all, and dealt with almost every situation in the book, or so I thought..............

Needless to say, emotions are running high these days between buyers, sellers, realtors, lenders, and every other interested party, including the media. As it relates to the lending side, now more than ever, it is critical that residential purchase agreements along with all counteroffers and addendums are properly disclosed to all parties to avoid any possible concerns in the middle of a transaction. If you have a verbal agreement of any sort, between any parties, it is your professional responsibility to CYA (cover your a**) by putting it in writing. Failure to do so will only annoy you and ultimately piss everyone else off.

To that end, I had the pleasure of receiving this purchase from a friend of mine who could've easily written the loan for a $1.5 million purchase for a high level executive that spends a fair amount of time traveling internationally. However, since the sale had been negotiated during the holiday season, with the final agreements in place around the 4th of January, you can imagine the need to be completely organized if we were to close by the anticipated close of escrow date on January 24th. He simply admitted that as a broker, he could not reasonably assure everyone that he could close on time.

On the 6th of January when I received all of the fully executed agreements and addenda, an appraisal was ordered with the expectation that it would be received by the 15th of the month.

By the 9th, calls were coming in from the listing agent, along with their escrow company, to determine if we would be closing by the 15th.

Given that everything in writing showed a closing on or before the 25th, I wondered where this earlier date came from.

Apparently, all of the interested parties had agreed that they would ATTEMPT to close as early as possible.

First of all, in the current lending environment, an ATTEMPT is just that. It is not a guarantee, implicit or otherwise that this transaction would close by then. Again, on or before a certain date, does not allow a listing agent to unilaterally determine that their own desire to close early MUST be accommodated.

As it is, real estate is such an emotional business, particularly for the buyer and seller. The professionals however, need to be empathetic, but more than anything, provide the buyers and sellers with accurate information, not opinion and conjecture. Failing to do this is completely irresponsible.

Herein, the buyer is thoroughly excited that they have found the home of their dreams. They are getting quotes for the work they want done to the home. Being threatened that their $50K deposit is at risk, as well as possibly losing the home altogether, is not only grossly unfair and unprofessional, but completely unnecessary by simply reviewing the terms of the contract. It is completely understood that the negotiation process took weeks, but the contract terms start with a fully executed contract NOT when discussions began.

The buyers agent is doing a great job communicating with all of the parties. Though she knows her buyer is protected, nevertheless she has to keep them informed as to the threats that are being communicated from the seller (or in my opinion, her agent who incorrectly advised the seller).

The listing agent is making it clear that a notice to perform will be sent to me. Last I checked, that is a conversation between realtors, not between listing agent and buyers lender. Oh, and this is an experienced agent, not a rookie. Could the $42K commission be clouding judgement here?

Regardless of the underlying reasons, a CONTRACT is a CONTRACT. As a lender, I will uphold the terms of that contract. I will uphold my duty to close on time, every time, unless I am somehow not apprised of what is expected of me. Again, guess what? My expectations come from the contract....if I see something that is somehow questionable or contradictory, I will seek clarification.

Instructing my office, my staff, and my processing team to hurry by constantly calling and emailing is not going to magically change that somewhere along the line it appears the listing agent screwed up by not agreeing to a closing date of the 15th and/or they incorrectly instructed the seller to be ready to move by the 15th.

Assuming that there were a legitimate question about the closing date, why threaten canceling the transaction over 10 days? I'm looking for a legitimate cause of wanting to risk a sure closing on a $1.5 million purchase for the possibility of someone else making an offer? I can't seem to find it even a few weeks after closing. Was there a cash offer on the table? Even so, such a conversation cannot and shouldnt be had until there is a real possibility that the current transaction may not close for some legitimate reason.

My point is that this sort of behavior only illustrates the desperation, as well as lack of professionalism in the industry. It is tantamount to the same pressures that irresponsible lenders partook in by trying to coerce appraisers to deliver an unsupported value.

What does this type of behavior reinforce to the buyer? Though we closed 2 days earlier than contract, they were a genuine bundle of nerves over the $50K deposit, but more importantly, over possibly losing the house.

What does this type of behavior say to the seller who was incorrectly advised about when they could move? Would they be able to close on their other home if this one somehow didnt close? Were they willing to take this risk as the listing agent failed to correctly inform them?

I can say this much.....I have an ecstatic buyer, and a very happy buyers agent. The inhouse escrow company provided me with 4 additional similar deals that needed to be saved from other ineffective or unscrupulous lenders (separate blog there). The buyers agent asked me to refinance her primary residence, as well as 2 of her 3 rentals (the 3rd one had a great loan).

The listing agent apologized for his behavior, pawning it off on nervous sellers. I don't believe it, but I accepted his apology, though I would never work with the inidividual in the future.

Your lender should be a trusted team mate designed to collaborate with all of the involved parties. That does not mean however, that we can be bullied. We're here to help make dreams come true.

Are you?

P.S. The property appraised close to $200K over purchase price.....Karma is a wonderful thing!

AIG---Is the Marketing Department out of touch?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Thu, 18 Sep 2008 23:14:27 -0500

I found this ad copy on the back cover of this month's Money Magazine.....

It strikes me as a tad bit disingenous, and out of touch...........................

AIG--The Strength to Be There (as Dr. Phil would say...How's that working for ya?)

Ad copy:

No problem--got em right where we want them. We've been in tougher james than this. Their defense looks tired. Now we have the ball. This will be one sweet comeback.

It almost sounds like Ohio State in their 35-3 loss to USC last weekend as they made their comeback.

Optimism can add 8 years to your life.

What happens when the government takes you over? Does that take away 15 years?

So go ahead, live longer. When you prepare for retirement with AIG, we'll be there wherever and whenever you need us. We've helped over 5 million people retire stronger. Ask your financial advisor about AIG or visit retirestronger.com.

and in big bold letters:

Live Longer Retire Stronger

Never Outlive Your Money

Wow....guess that corporate vision didn't quite work out.

What say you?

Woo Hoo or WTF? A letter to my mom about the pending crash (or sale?) of the largest savings thrift at Wamu...

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Wed, 17 Sep 2008 18:43:15 -0500

It has been several months since I've had the opportunity to post. My mother taught me that if you can't say anything nice, then don't say anything at all.......

Mom...I apologize in advance for ignoring your wisdom.

I can't resist any further; and NO, I will not tell you what WTF means....I can't tell you everything.

This industry that I'm in is coming apart at the seams. You know that while I've always been wise about my investments, as well as the movements I made throughout my career, none has affected me as negatively as my days at WaMu. I spent the most painful year at my life at that institution as the leadership under Kerry Killinger concentrated on what I felt was the riskiest program for the everyday consumer; the Option ARM that allowed you to add to your mortgage balance under the assumption that values would continue to increase until the end of time. Realtors, Mortgage Brokers, and the whole world preached that it would be 'easy enough to get out of'. Well, let's say that didn't quite worked out the way it was promisted. It allowed me to see an opportunity that reminded me of your career in the aerospace industry that in many ways became the impetus and basis of my book, Finding Foreclosures, by Entrepreneur Press.

You taught me to live within my means, manage my credit, and purchase real estate, while always working on continuing education as a way of staying ahead of others.

I have not amounted to being the CEO of a major bank such as Washington Mutual, but I have to wonder if wouldn't have done a better job, given my background.

Within 30 days of starting with that institution, I realized that the compensation plan was changed to reward everyone for pushing the most profitable products, without understanding if it made the most sense for the consumer. I care because it was the wrong thing to do.....What ever happened to tangible benefit?

Today, I read an article of which I've copied some of the pieces out.

The government's efforts to find a buyer, though, are being complicated by uncertainty about the magnitude of losses still lurking in Washington Mutual's home loan portfolio. "No one knows what's in their books," said a person briefed on the talks between regulators and banks. The person spoke Wednesday on the condition of anonymity because of the sensitivity on the matter.

Forgive me Mom, but this is total bullshit. I could repeat the things you or Grandma would say in Spanish, but then I'd really get in trouble.

As of 30 days ago, WaMu was reported as having close to 50% of their Option Arm portfolio, that was 60 days past due or more. This does NOT include the over $200M worth of home equity lines that have been frozen, closed, or also past due. That has to be in the billions of dollars in debts, not including the deferred interest that WAS recognized as income according to their accounting practices.

Do I feel sorry for the employees? Absolutely.

Yes, BUT I also know they will be far better off if JPMorgan Chase (or anyone for that matter) buys them, since they've been looking at them for years. I know at this point the government will not jump in as they have to draw a line in the sand somewhere, since you can't bail everyone out.

AIG Insurance just received an $85million injection of capital. I would take 1% of that right now. I don't know the insurance sectors financials well enough, but I know that when government steps in, it cannot be a good thing.

The lessons we've learned from this debacle in the financial sector, which includes real estate and mortgage, have made me realize how right you were all along. Wow...did I just say that? I may have not wanted to listen over the years, but I thank you for teaching me to humble and learn the lessons that an economy should not be built on constantly consuming more and more.

My behavior has already changed in the last year, as has that of my wife and kids. So let's get this over with, move WaMu and any other banking, investment, or real estate institution, into an environment where they are sold, bought out, dismantled, and forced to re-capitalize instead of making countless excuses as to why it makes sense to keep them around.

I know that my family, as well as society will be better off the faster we untangle this mess. It took years to create it; since its been close to 18 months, can we just get it over with, and get rid of the media spin, such as this other piece of the article that I saw....

After losing $6.3 billion in the past three quarters, Washington Mutual believes it is slowly healing under a new chief executive, Alan Fishman, who will receive an $8 million bonus if he can keep the nation's largest thrift alive through 2009. "I think people do know what is in our books and we've been pretty transparent," WaMu spokeswoman Olivia Riley said Wednesday, pointing to a financial update that the company released late last week. Those figures suggested WaMu's loan problems are becoming less severe compared to recent quarters, giving some analysts hope that the company can still be salvaged. Nonetheless, analysts still expect the company to sustain a loss of about $1.8 billion in the current quarter ending Sept. 30. And investors are showing little confidence in WaMu. The company's shares fell 31 cents to $2.01 Wednesday, leaving the stock price with a decline of about 85 percent decline so far this year.

Really? $6.3 billion in losses is that it?

WaMu, you've been transparent by saying that your problems are becoming less severe? Does that mean you're still going to die, but you're going to hang in there an extra couple of weeks? Spare me.........just die already. Quick and painless (unless you're an employee or a shareholder.....I digress....)

Mom, it is inevitable that I will piss someone off by writing this, but seriously, I just couldn't hold out any more. I'm tired of waking up to hear those in different parts of my industry bicker and moan that its so difficult now....or that they somehow can't make the 3 to 4 points that Wamu was used to paying the broker community, who in turn blames WaMu for allowing them to participate in such thievery since all they did is sell the product, albeit it a far higher price and margin than was necessary, but again, don't let me get off track. My little brain might explode.

When WaMu is gone, then we will have a REAL reason to go Woo Hoo!

In the interim, I just have to think.....................WTF? What have we come down to?

Breaking News....WAMU to shut down all RETAIL AND WHOLESALE lending offices at the end of this month

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 07 Apr 2008 18:31:53 -0500

I always knew that the company was in some trouble, given all of the recent changes recently, but it seems like the deferred interest (neg am) loan has become the nail in their coffin.

A friend of mine on Wall Street just informed me that a huge conference call just occurred where Wamu announced that they will only handle loans through their branches, choosing to shut down all retail and wholesale lending offices at the end of this current month, April 30th, 2008.

As I receive transcripts or additional breaking news, I will let everybody know.

Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.

100 percent financing, 5 percent down mortgages...What Declining Market? Mortgage Financing with Little or No Money Down

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sat, 15 Mar 2008 01:47:06 -0500

I've been away from Active Rain for about a month now, as I simply needed time to regroup, relax, and re-load.

While I've made the occasional visit to some wonderful blogs, along with extensive analysis related to my current book, I've had time to concentrate on my passion for the mortgage industry. Once again, I feel like I've found myself dealing with buyers and sellers alike who understand the delicate intricacies of the current marketplace.

So let's jump back in the ActiveRain fire...though I do have to say I feel like the site has lost a lot of pizzazz, but that's another post......

Seriously, if you don't understand how a declining market works, don't write commentary trying to educate others about it. The following excerpts are here on AR....

So what does this mean for the average home buyer? You might need to plan on coming to the table with 5% more of a down payment than you previously planned on if you are going with a conventional loan program. For the home buyer choosing the 100% financing program, you may now need 5% for a down payment; for the 97% home buyer, you may now need 8% down payment; and so on.

The answer is simple: you might need to work with a lender that knows what he is talking about. No doubt that 100% programs are tougher than previously, but did you know that you can still do a full doc, 80/20 loan (sometimes with income limitations) that is NOT subject to putting money down?

Know what loan program your client is going for and communicate with him early about this guideline. If the client is buying an investment home and the max loan guideline allows for 90% financing, prepare him that he may need to put 15% down to qualify. If the max allowed is 80%, prepare him for 25% down.

YES!!!! Keep spewing this ignorance, so I can finance them according to guidelines...you're making my life easier! First and foremost, the declining market concern applies only when the first mortgage exceeds 80% in the absence of secondary (or subordinate) financing.

Contrary to popular belief, the declining market box on appraisal reports does NOT affect the loan to value, or combined loan to value on a loan, unless you're working with an inferior lender/broker that does not understand the purpose of the policy, which is that we should look at property values with an abundance of caution to prevent us from running into the same valuation issues in the future, that we're dealing with today. The two things are mutually exclusive of each other.....I have 26 purchase transactions across the U.S that have been approved with as little as 5% down, all in declining markets, where we have not once asked the borrower to bring in additional money (unless they didn't qualify, or had excessive debt to income ratios. All have either closed in the last couple of weeks, or are scheduled to close by the end of March 2008.

We have a similar number coming up next week that we need to review....its better than the top of the market, when every Tom, Dick, and Harry were writing mortgages. It is a lot of fun these days as it clearly appears that the realtors who are left are the more committed ones to our industry, and are accordingly willing to adapt with us.

Even better, I've realized that we're getting deals through word of mouth from buyers, sellers, realtors, and escrow officers that know someone who is at risk of falling out of escrow, or who simply does not have the confidence that the deal will close with their current lender/broker.

If you continue doing what you've always done, while all of the conditions in the marketplace have changed so drastically, what results would you expect? Rhetorical? maybe?

Are you a frustrated realtor that is tired of losing deals? Are you a consumer in the middle of buying a property only to realize that the alleged 'lender' cannot deliver? Don't put your future in the hands of someone who lacks experience and knowledge.

Allow us to help you reach your goals, whether personal or professional. Our office funds an average $40 million per month. Can we help you?

Basel II--Mike Tarabotto got me reading.....and thinking.....

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sat, 09 Feb 2008 23:03:54 -0600

I thoroughly enjoyed a recent post by Michael Tarraboto, that is linked here....

http://activerain.com/blogsview/368385/Basel-II-Rethinking-it

Yes, I'm a numbers geek, and hence enjoy seeing the high level conversations that are being had by the banks along with other participants in the securities markets at the highest levels....hence, this is where Basel II comes in. For a complete explanation, go to Mike's link shown above. I will merely take two paragraphs as excerpts, and explain why they are so telling.

Excerpt #1:

19. Markets are procyclical, economic capital is procyclical and human behavior tends to be procyclical-our optimism is amplified in good times, and our pessimism is magnified in bad times. What is more important is that supervisors recognize this inherent bias towards pro-cyclicality in the financial system, ensure that banks prepare themselves in good times to meet the rigors of the bad times and do not take measures in bad times that unduly amplify the cycle. Bank managers, too, should be aware of the cyclical profile of their business activity and their risk management systems; of the difficulty of shoring up capital in recessionary phases and of the costs this entails.

My summary: By overly diluting the lending channels specifically, the broker community specifically without their own warehouse lines, and commitments to live up to, operated, managed, and executed as if it were their own reality show, "How to Screw the Pooch Customer' without any regard to accountability, and even less to ensuring that a higher percentage of profits was set aside as reserves in the case of loss. Then again, if you're not asking your clients for more than 1 months reserves, or you were foolish enough to go Stated/Stated to 100% with a history of delinquent payments, I suppose you wouldn't be thinking of the future, cause the present is so wildly spectacular!

Secondly, I specifically point to the very last sentence that speaks to the ability of shoring up capital in these recessionary phases. We all know this is why so many companies have gone out of business, and even the largest mortgage companies are being acquired and absorbed. To this end, you've only seen the tip of the iceberg. Expect mergers, acquisitions, and consolidations to continue at a fervent pace through 2009.

Excerpt #2:

21. Procyclical behavior reflects the tendency to underestimate risk in good times, and overestimate it in bad times. A capital framework which better estimates risk through an economic cycle, is less likely to suffer from under and over estimations, and hence more likely to aid in smoothening procyclical effects. Basel II encourages the appropriate use of capital buffers through the cycle. Let me emphasize here that the idea of building robustness in good times is not only a prudent policy, it is also theoretically consistent because it is in good times when exposures and therefore risks increase, while in bad times these risks materialize.

My summary: Funny, when times were great, that tide helped all ships rise. I'm paraphrasing from something Bill Roberts spoke about previously. Very true though. Think about it...as Real Estate Professionals, whether you're a Realtor, Banker, Broker, or other affiliate, you've probably weathered the current storm because you have a large portfolio of clients and referral sources, as well as being able to adapt to the times. You invested in your personal knowledge during the good times, as well as marketed during the good times, so that when things turned as quickly as they did, you were able to draw from your pool of contacts and resources, and hopefully that investment account that you created and fed during the good times. More than anything that second excerpt SCREAMS to having those risk increase during the good times, as everyone appeared to be too busy to pay attention or to even care. Do you think that the same excesses and oversights will occur in the future?

Personally, I envision an extremely different model moving forward. Brokers will need to become banks to survive. Banks will streamline their operations with technology as they will need to work on more aggressive profits to account for unrecognized losses today. Mortgage Insurance companies will go through the same consolidations that you're seeing in lending. Real Estate companies will merge with less broker/owners, and more corporate or joint venture opportunities that spread the risk amongst several parties.

It is clear that Basel II will provide excellent framework in the future. In the interim, I believe survival will govern many of the changes that will be necessary to survive in the 2008 and beyond. Oh, and if you think government is the answer, I have great connections in the travel industry. I'm more than happy to help you book a ticket to Europe, if you like socialist behaviors and want to be managed by your government. I better quit before I go off on a tangent.

Mike, thanks for an excellent piece on Basel II. Now that I've read it, I can only thank you for sharing. Expect me to write more as I dig deeper on what I expect to be the long healing of the Real Estate Industry.............

Foreclosure Hits Close to Home.......

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sat, 09 Feb 2008 18:36:34 -0600

I often wonder what makes people tick.....

My wife had a conversation with our neighbor a couple of weeks ago, as we found out the neighbors were moving as the house was being foreclosed upon. Huh? The house next door with all the bells and whistles is going into foreclosure? We'll go back to this later in the story.

The tenants moved into the area because of the excellent school district, paid $2500 monthly rent, first and last month up front, while they saved additional money for a down payment to be able to move into the neighborhood. This was April of 2007.

Let's follow the clock backward.

Sale went through March of 2007 for $699K with 100% financing. The kids (our former neighbors) bought out their parents who were the original owners dating back to 2004 when we moved in to the new community. Oh, but the parents never lived there...it was just a paper transaction.

Essentially, nine months later, the property hasn't had any payments made, and the sheriff puts up a notice announcing the bank is foreclosing, and the current tenants have 40 days to move out from the date of the sale. This will be yet another post, as this is opening a cottage industry of tenants who lack any protections from shady homeowners going into foreclosure.

You have to wonder that something tragic must have happened to the family that purchased the home, and was never able to make the payments.

You know what happened? Two people saw an opportunity to capitalize on the business of walking away. This will be a completely separate post.

The Mortgage Debt and Forgiveness Act of 2007, HR 3648, allowed homeowners to walk away, eliminating the federal taxable liability of the loss that they would've received a 1099 for. Ahhh....bet the politicians didn't see that unintended consequence occurring, did they?

You see the former owners (Mom and Dad) bought the property in 2004 for $450K, and ‘sold it' (to the kids) for $699K in 2007. Can you say non arms-length transaction?

Or maybe, we should call it what it is? Equity stripping? You see, the kids have been in finance and mortgage for 10 and 20 years respectively. Can you imagine $249K in gross profits, less transaction costs, going to the parents (or should we call it like it is....going to the kids through the parents?). Do you think they knew what they were doing? Should I mention that they walked away from 2 homes, not just 1. Total losses to the bank? $1.3 million dollars. And this is but one of countless stories playing out across America.

Either way, I believe that we should love thy neighbor....until they show their true colors, at which time karma will deliver what they so rightfully deserve. I will not be the one to judge them, but I certainly will not be making an effort to make ourselves available for the next birthday party or special event.

I think the apple doesn't fall far from the tree, and the last thing I want is to have my kids playing with their kids. I'm funny like that.

FoxBusiness..are you taking advantage of buying opportunities in these 5 cities?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sun, 16 Dec 2007 22:37:30 -0600

It isn't said enough that the current market offers excellent buying opportunities across America. The barrage of reports constantly speaks to the weaknesses in this current market where real investors are buying, and contrarians such as myself are carving out a niche that relies on experience and knowledge.

Take a look at this recent spot my co-author did on the #1 business show in the nation, Your World with Neil Cavuto. We were able to look at some areas across the country that provide solid buying opportunities.

http://www.findingforeclosureexperts.com/radio-television-32.html

If you are considering buying, we'd recommend speaking with an experienced realtor who specializes in one of these communities. These are merely some of our choices, as we know there are several others. We will update this list at least once a month. If you are considering selling, it may make sense to discuss if now is the right time to sell, or if you should wait for an expected increase in appreciation. Maybe, you'll keep the home, and become an Accidental Landlord (new book coming soon....) Have these markets hit bottom? Based on the fundamentals, it appears so for these specific areas.

We hope you agree!

Mortgage PRO Week in Review -- 12/03/07 through 12/09/07

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 10 Dec 2007 15:42:34 -0600

I was honored when Jeff Belonger asked me to write this review, until I realized that I was also following Tom Burris, and Sarah Eubanks, who did an excellent job on their insight into the mortgage industry for their respective weeks! I will begin by saying that there is so much talent on this website alone, that we could probably solve the current real estate environment a lot faster, and a lot cleaner than our politicians on both sides of the aisle can. At the very least, if they merely listened, we'd have a soft landing, not an all out crash and burn!

It has been an interesting week that has extended an olive branch to many borrowers across the United States who have been waiting to hear the news. I am fortunate to have access to so many great stories this week, that I hope and pray that I'm not leaving anyone out. Also, since I'm the one doing the review, I purposely chose NOT to write anything about the current week as I gathered my thoughts...expect to see something from me next week, as this week its all about YOU!

YOU ARE THE TALENT THAT DRIVES THIS MACHINE! Knowing that you are in this industry, I believe that your voices will make a difference in the world.

Janet's article talks about the potential danger of turning our real estate market into one big scrap heap of metal by regulating and controlling it through government intervention and the freezing of interest rates. You MUST read it.

http://activerain.com/blogsview/292799/Freezing-Adjustable-Rates-is

Another supporter comes to the same conclusion as Janet, but Rich really shows some of the statistical and research data that Bank of America Investments did. I've seen this same study, and think that you need to really understand it. The reasons for these defaults are not what you think they are! Leave it to Rich to go there!

http://activerain.com/blogsview/297805/WHY-THE-RATE-FREEZE

Cheryl Hale from Florida points out several reasons why it does make sense to buy now. Her facts are right on. Take a look at her article.

http://activerain.com/blogsview/300941/Borrowers-Don-t-Wait

SPECIAL MENTION: While this story falls outside of the parameters of our coverage dates, I think it is appropriate to use, since cockroaches seem to keep making their way back as part of the survival process. Jason Sardi cuts to the chase in the creativity that is Sardi. His words were so powerful to me, that I used them in a major presentation this week as part of my speaking and consulting business to the industry. I'm a far better speaker than I am a writer, but Jason shows me the talent the other side brings to the table!

http://activerain.com/blogsview/289108/Apocalypse-How-Becoming-a

Jeff writes another great article about how deeply rooted the current issues really are. Is it really just the subprime borrowers that are to blame? Or is is possible that this will continue to spread through other sectors of the economy? My opinion is we've only started, but Jeff puts out a great case.

http://activerain.com/blogsview/299658/Will-Conventional-loans-be

It seems to be that the common consensus is to leave things alone, and let the markets solve this issue, sort of let the chips fall where they may. Bob Mitchell from St. Louis wrote an excellent piece arguing for government support. To me the value of this site, is being able to recognize the arguments that are being presented so you can understand the differences across America.

http://activerain.com/blogsview/295910/I-m-From-The

Then Ken Cook comes along and says that he doesn't really care what anyone has to say....ok, he didn't really say that, but I like his message. REGARDLESS of what might be happening, here are some great reasons to buy now! Without further ado, take a look at his article.

http://activerain.com/blogsview/295297/Why-To-Buy-NOW

Rey Gallegos comes along and tells us what is already happening with the cost and risk factors in current and future lending, as a result of the current defaults and delinquencies in the mortgage markets.

http://activerain.com/blogsview/298322/I-blame-you-for

Michael Tarraboto probably has the easiest, most understandable explanation of the impact of Fannie Mae, Freddie Mac, and the future of real estate values....because after all, who really cares about the cost of funds, and any other possible real estate or mortgage related story, if property values make it nearly impossible to borrow money? Its somewhat high level, but again, Michael does the best job I've seen of explaining this to consumers and industry experts alike.

http://activerain.com/blogsview/281272/Fannie-Freddie-and-the

Andrew Lenza comes along from Joysey, and throws Scrooge's interpretation into the mix. It makes you think how life imitates art! Or is it the other way around? Either way, Andrew figures it out...............go read it!

http://activerain.com/blogsview/294379/If-Scrooge-s-Jacob

Summing it up, while I do not believe that ANY of the talent I've mentioned will NOT be around in 2008 and beyond, Brian's analysis at the future speaks to the industry. Half of the people on this site, and in the industry will not be able to survive through the current downturn. You never know if Brian is on your side, or just writing a great counterargument to get you to think and define your position. Either way, he is a well thought out, and interesting read.

http://activerain.com/blogsview/293705/The-Active-Rain-Community

And with his analysis, I revert back to Jason Sardi's insightful and impactful post that gets you thinking that if you're around in a year because you were able to focus on the basics, adapt, survive, and then thrive.....that maybe being a cockroach isn't so bad after all?

I know the coming weeks will be thoroughly exciting when you see the talent we have lined up! Our Christmas gift to you is to bring you the best and brightest talent through the end of the year....so look who we have coming..............

1. Mike Mueller 12/10/07 through 12/16/07

2. Cheryl Hale 12/17/07 through 12/23/07

3. Jeff Belonger 12/24/07 to 12/30/07

Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at www.realcoachingradio.com, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. If one of the many talented professionals on this site cannot help you, please feel free to contact me as I can also lend in all 50 states. While Real Estate is local, knowledge is universal. I hope to help you soon.

Also, since Elizabeth Nieves just MeMe'd me, I hope you'll take a look at that post regarding my current reading materials. http://activerain.com/blogsview/298916/MeMeMeME-How-Elizabeth-Nieves

Now don't you DARE think that you couldn't be involved......

Mortgage blogs by loan officers Here is a list of Loan Officers. If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in review can try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!!

MORTGAGE PRO Week in Review A repository for the Mortgage Week in Review. Please don't hesitate in joining this group.

Foreclosures Rise, Auctions increase, but do Sales Follow?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 03 Dec 2007 01:25:26 -0600

First I want to say that after posting on Jeff Belonger's clever post pitting the Realtor vs. The Loan Officer; http://activerain.com/blogsview/292076/Which-one-is-better , I was thinking of a post regarding auctions that I'd put off for a while. I guess its because I somehow alluded that the lender played a greater role than the realtor....(I still stand by the comment, but of course, temper it with this post).

Simply put, I believe that auctions are the Botox, glossy magazine equivalent of the real estate world. Simply put, they are wonderful marketing techniques that sell 1 or 2 of several hundred homes at a screaming deal, while most of the others are typically at market, and sometimes even above.

To that end, I invite you to review a recent article that I interviewed for in conjunction with the Houston Chronicle.

http://www.findingforeclosureexperts.com/docs/Nazur_Houston_Chronicle_As_Foreclosures_Rise_So_Do_Auctions_11-3-07_by_Nancy_Sarnoff.pdf

As realtors, I hope that you would embrace the auction model as one that creates value for your service and knowledge. Do you think you have the ability to educate your buyers in a better manner than some fast talking auctioneer.

Brian Block had an excellent post a couple of months ago that looked at homes that did not sell during a given week. http://activerain.com/blogsview/179641/What-Homes-did-NOT; specifically, the following sentence stood out in my mind: I would have advertised the auction with a starting bid about $100,000 under the comparable sales and ended up selling for quite a bit above asking price a week after auction. This unit was OVERPRICED FOR AUCTION. Auction attendees expect a deal.

Renee Burrows recently spoke about the Las Vegas market at great length, but specifically looked at the irrational behavior of the marketplace. My attempts to paraphrase her writing will not do the story justice. http://activerain.com/blogsview/289123/Las-Vegas-Buyers-Irrational

As lenders, I'd encourage anyone with a high level of experience to market to the consumers directly at the auction house, and sometimes even through the auction houses themselves. I just ran circles around the auction houses mortgage company and closed 3 deals. Like taking candy from a baby! Yes, I still write mortgages; are you kidding, this market lends itself for knowledge; its easier now than the top of the market!

As consumers, caveat emptor (let the buyer beware). Should you need further convincing, go to this article by Eileen Landau from Illinois. http://activerain.com/blogsview/256836/Auctions-Another-Marketing-Technique

Let me say, thank you to all of the auction houses for generating extensive publicity that screams of the 10, 12, or 18 months of inventory that buyers have to choose from. You have muddied the waters for a few months, but that too will change.

Let me also say, Mr. CEO of a well known auction house, until you change your behavior, I will continue to point out that your mechanism for selling homes is NOT the most efficient, nor the most effective, but you WILL have a great run through 2009. I serve my clients, my referral sources, my readers, my friends, and those that listen to my radio show or any other interview that I do. You advertise aggressively in every newspaper around, and pack the house, but you're not selling as much as you'd like because you haven't figured out how to provide the value that others do.

To that end, regardless of your involvement in an auction environment, remember that all that glitters is not gold.

It's a tough real estate market out there....don't get SOAKED!

Work with professionals! They are worth every penny that you could ever spend.

Here's to a successful 2008 in your business, as well as a worthy year for investments and real estate purchases.

A Different Christmas Poem--Bring your Tissue unless you're Heartless

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Tue, 27 Nov 2007 02:25:31 -0600

This is very different from my normal postings, but as we just finished a great Thanksgiving day weekend, and we're into the beautiful holiday season, I thought of my nephew who is scheduled to go back to the Middle East in the next 45 days or so, and all of the other people in the military....This is a tribute to them....I hope you agree......

The embers glowed softly, and in their
dim light,

I gazed round the room and I cherished the sight.

My wife was asleep, her head on my chest,

My daughter beside me, angelic in rest.

Outside the snow fell, a blanket of white,

Transforming the yard to a winter delight.

The sparkling lights in the tree I believe,

Completed the magic that was Christmas Eve.

My eyelids were heavy, my breathing was deep,

Secure and surrounded by love I would sleep.

In perfect contentment, or so it would seem,

So I slumbered, perhaps I started to dream.

The sound wasn't loud, and it wasn't too near,

But I opened my eyes when it tickled my ear.

Perhaps just a cough, I didn't quite know, Then the

sure sound of footsteps outside in the snow.

My soul gave a tremble, I struggled to hear,

And I crept to the door just to see who was near.

Standing out in the cold and the dark of the night,

A lone figure stood, his face weary and tight.

A soldier, I puzzled, some twenty years old,

Perhaps a Marine, huddled here in the cold.

Alone in the dark, he looked up and smiled,

Standing watch over me, and my wife and my child.

'What are you doing?' I asked without fear,

'Come in this moment, it's freezing out here!

Put down your pack, brush the snow from your sleeve,

You should be at home on a cold Christmas Eve!'

For barely a moment I saw his eyes shift,

Away from the cold and the snow blown in drifts..

To the window that danced with a warm fire's light

Then he sighed and he said 'Its really all right,

I'm out here by choice. I'm here every night.'

'It's my duty to stand at the front
of the line,

That separates you from the darkest of times.

No one had to ask or beg or implore me,

I'm proud to stand here like my fathers before me.

My Gramps died at ' Pearl on a day in December,'

Then he sighed, 'That's a Christmas 'Gram always remembers.'

My dad stood his watch in the jungles of ' Nam ',

And now it is my turn and so, here I am.

I've not seen my own son in more than a while,

But my wife sends me pictures, he's sure got her smile.

Then he bent and he carefully pulled from his bag,

The red, white, and blue... an American flag.

I can live through the cold and the being alone,

Away from my family, my house and my home.

I can stand at my post through the rain and the sleet,

I can sleep in a foxhole with little to eat.

I can carry the weight of killing another,

Or lay down my life with my sister and brother..

Who stand at the front against any and all,

To ensure for all time that this flag will not fall.'

'So go back inside,' he said, 'harbor no fright,

Your family is waiting and I'll be all right.'

'But isn't there something I can do, at the least,

'Give you money,' I asked, 'or prepare you a feast?

It seems all too little for all that you've done,

For being away from your wife and your son.'

Then his eye welled a tear that held no regret,

'Just tell us you love us, and never forget.

To fight for our rights back at home while we're gone,

To stand your own watch, no matter how long.

For when we come home, either standing or dead,



         To know you remember
we fought and we bled.

Is payment enough, and with that we will trust,

That we mattered to you as you mattered to us.'

PLEASE, Would you kindly honor all of the families that sacrifice so much to give us the freedom to disagree and speak our minds as we do here on Active Rain. Christmas will be coming soon and some credit is due to our
U.S.service men and women for our being able to celebrate these festivities.  Let's try in this small way to pay a tiny bit of what we owe. Make people stop and think of our heroes, living and dead, who sacrificed themselves
for us.

I look forward to your feedback. Here is a little something to 'look back' on the past images of our military.

Are Illegals to Blame for the Foreclosure Problem?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 19 Nov 2007 02:04:09 -0600

I held back from posting this previously, but at the end of the day, fair is fair.

Regrettably, everyone is looking for an excuse as to why the real estate market is performing the way that it is.

I had the pleasure of speaking with MSNBC about this topic while on my recent trip to New York City. Before clicking on the video can you guess how little (or how MUCH) this statement is true?

http://www.findingforeclosureexperts.com/radio-television-18.html

Please share your thoughts after you've seen the video. How will you judge the interview?

I very much look forward to speaking with you.

WAMU is certifiably stupid......but a great PR machine!

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 19 Nov 2007 01:44:35 -0600

A couple of months ago, I asked the question in a previous blog, titled is 'Wamu wise or stupid?" Here is the link: http://activerain.com/blogsview/222979/WAMU-are-you-wise

I am extremely impressed that the public relations machine at Wamu has effectively prevented so much of their information from htting the media.

Wamu, the nation's largest savings and loan, announced on Friday that they would cease issuing mortgages, commonly known, as the Option Arm on all refinance transactions until further notice, and have changed the parameters for purchase transactions to require a minimum of 20% down.

Typically this kind of news would not be a big issue, except that this institution is in the Top 3 (maybe 4)issuers of mortgages nationwide. As well, the company's portfolio is composed of approximately 80% negative amortization business, where there is an amount of deferred interest that is being added to the balance each month, until it reaches a specific cap. This program is a great tool for investors in managing cash flow, except that Wamu felt it was necessary to sell it to the common homeowner, who did not understand the true intricacies of the program, which allows for a maximum cap that by definition causes the large increase in the monthly payment, directly contributing to an increase in consumers who are unable to maintain their payments, leading to foreclosure.

Also, regarding foreclosure, this lender currently has just under $100 million in Home Equity lines that have recently defaulted (just fallen behind 30 days on their payments), many of which were placed behind the Negative Amortization Option ARM (with an increasing monthly balance), in a market with declining values.

Expect this institution to be the next major news story behind Countrywide. The balance sheet is not as strong as Wall Street believes as a result of the deferred interest being recognized as income, as we've outlined in our publication, Finding Foreclosures.

As more homes enter the foreclosure process, this institution will sadly provide many opportunities for investors and first time home buyers in 2008.

Fires, Families, and Foreclosures--A Worthy Solution....

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 29 Oct 2007 00:37:32 -0500

Needless to say, the recent fires across California have affected countless thousands of lives, having destroyed 1414 homes according to an article in the San Diego Union Tribune that I just read, titled Fire Facts: here is the link: http://www.signonsandiego.com/news/metro/20071026-9999-1n26facts.html

While countless other cities have also been affected, this is merely an illustration of the power that we have to assist those that have lost their homes; the concept works in Orange County, Santa Clarita, Riverside County, as well as the other cities that have significant foreclosure activity, as well as extensive fire damage.

First and foremost, the thought came to mind that the difficult lending environment is preventing current homeowners from being able to refinance due to lack of equity, combined with tightened lending standards, as well as creating an even tougher environment in which to sell a home. As difficult as it may sound, a financially challenged individual or family could easily invite another individual or family who just lost their home to a fire, to move in and rent a room or part of the home to prevent the foreclosure from moving forward. Desperate times call for desperate measures......what would you do to save your home?

Secondly, in any of these given markets, the sheer volume of homeowners requiring temporary living accommodations will create more pressure on the rental market, or may even benefit the local hotel community, whilst not providing the comforts of home that one has grown accustomed to.

So I decided to pull a real-time report from RealtyTrac for the San Diego market. The statistics are listed below:

Pre-Foreclosure: 4517 Properties

Auction: 1234 Properties

Bank-Owned: 2569 Properties

Govt Owned: 1 Property

FSBO: 136 Properties

Resale Homes: 482 Properties

New Homes: 75 Properties

I specifically bolded the bank-owned properties, as there are twice as many bank-owned properties, than there were destroyed homes when comparing the Tribune's data with RealtyTrac data. The banks and other lending institutions that hold the inventory could turn these 2 tragedies: the Fires and the Foreclosures, into a shining example of Corporate Responsibility and Community Development. Needless to say, the insurance companies will assist their policy holders in rebuilding and getting their customers back on their feet with as little disruption as possible, and could even arrange to make payments to the bank directly to help offset some of the costs of holding the foreclosed properties on their balance sheets, which they are currently doing. This is a win for every party involved, with minimal risk to any involved party. Granted, the banks are not in the business of owning property, but again, desperate times call for desperate measures.

Additionally, countless families will show their long term appreciation to those that stepped up to the plate with assistance during an extremely difficult time. What would you do?????? Bill Nazur http://www.findingforeclosureexperts.com/

Conforming Loan Limits Scheduled to Decrease

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Tue, 16 Oct 2007 23:17:37 -0500

While this is schedule to occur in 2009, you should be made aware it is coming. The Office of Federal Housing Enterprise & Oversight is responsible for the amount of conforming loan limits based on the cost of homes from October to October each year.

OFHEO Director James Lockhart announced that, based on provisions in the proposed guidance, the current conforming loan limit will not be reduced for 2008. If the index used to calculate the maximum loan level should increase, the amount of the increase in 2008 would be reduced by the decline calculated in 2006 of 0.16%. Under no circumstance, however, would the maximum loan level for 2008 drop below the 2006 and 2007 limit of $417,000

What difference does it really make, and why should I care?

Well, primarily because the conforming loan limit determines the maximum size mortgage eligible for purchase by Fannie and Freddie, and is also used to determine the lesser limits for FHA and VA loan guarantees.

Now it increases and decreases, which in 2004 it was at $333,700, before it moved to $417,000 in 2005, so given the performance of the market as a whole, this should not be a surprise.

The limit is tied to the average home price as reported each November by the Federal Housing Finance Board.

Tying any reduction of the conforming loan limit to price changes over the three years ending in 2008 could lessen the magnitude of the adjustment -- or eliminate the need for it altogether -- if prices rebound in 2008.

Given the current market, and expected loan performance over the next 12-18 months, I believe that we can expect a decrease in 2009.

Knowing that this is coming, the prudent recommendation to buyers and sellers alike is to secure financing that closes PRIOR to the change.

You should know that this office was created in 1992 as a separate department within the Department of Housing and Urban Development (HUD) and would need to change its charter, which probably would not happen as that would shift an unnecessary amount of risk to the government.

I would be interested to see the impact this will have on the state of housing by the end of 2008. Any thoughts?

Tsunami is Coming...Instead of Buyer Beware, Its Buyer Prepare.....

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 08 Oct 2007 23:24:41 -0500

Your homebuyers will truly thank you for helping them......

The last quarter of 2007 has $120 Billion in adjustable rate mortgages that are scheduled to reset. Of that number, $90 billion is for the subprime market.

Ironically, given this number, Citigroup feels like the worst is behind them. How could they experience a 60% decrease in profits, and think they will be immune to this coming wave of foreclosures?

UBS wrote down $3.42 billion in mortgage backed securities.

Housing inventories continue to rise. Expect supply to reach 12 months by October, in many of the hot markets when many of the people that cannot keep up with payments move to listing their homes for sale, pushing inventories higher and higher........

The 4th quarter historically slows down significantly as it relates to home sales. Given low interest rates in the conforming markets (under $417K), an abundance of choice in homes, and desperate sellers and inexperienced real estate professionals, it is a great time to buy, as long as the payments make sense. Instead of trying to time the market, NOW makes a whole lot of sense from this investor's viewpoint.

Enjoy the appreciation that you will be buying into!

And how fun would it be to make a new home your Christmas gift, or a new place move into for the new year?

Countrywide Needs to Stop Acting Like a Baby......

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 08 Oct 2007 00:59:40 -0500

Waaaahhhh.....we can't handle the media....it's all their fault.....help us......we're the victims!!! Please get us out of this storm!!!!!!

I'm sitting here crying as I read through the Leaders' call that they did with their top management, staff, yada yada yada....If you want to read for yourself, here you go.......

http://online.wsj.com/public/resources/documents/CWIDE20071002.pdf

Some notable comments if you don't feel like spewing up your last meal.....are as follows:

First shocking comment:

"We are a company with unquestionable ethics, morals, and business practices." Oh really? I hate to see how crooked companies provide incentives to their sales staff. Or shall I throw the brokers under the bus for charging their innocent clients so much money, though of course we enabled it to happen.

Second shocking comment: 'To make this campaign a success, our divisions will have clear goals, built on our ruthless attack strategies (I swear I did NOT make that up!!), to continue to grow profitably.

Third shocking comment: I've always beleived very strongly in finding and retaining the best talent (good so far..) and taking care of our rainmakers (oh..oh, I feel that I'm slipping...). That philosophy isn't changing. (Wewh, well that's good...I think). I've made a lot of people rich or richer, who've joined me on my past crusades, please trust the same holds true here. (uuuggghhh....and this is their public relations firm).

And why am I not shocked at the last comment?

Unfortunately, we don't have time on this call for Q & A, but I want and need your feedback, so please send us an email at Opinion_Leader@countrywide.com, where we can ignore your real concerns, and allow us to suck your blood.....(ok, fine, I added that last part about ignoring your real concern, but I don't think its far from the truth!).

Oh, and if you play ball with us, you will be given a rubber wristband, that says 'Protect Our House', which I know will reinforce our commitment to our employees, our customers, our brokers, and of course Wall Street.....

I don't know about you......but this part of the business just has me absolutely..... .

Am I over-reacting?

YOU CAN'T HANDLE THE TRUTH!

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Fri, 05 Oct 2007 19:12:48 -0500

Taken from on of my favorite movies of all time a mortgage spin from "A Few
Good Men".......

Loan Officer: "You want answers?"

Underwriter: "I think we are entitled to them!"

Loan Officer: "You want answers?"

Underwriter: (YELLING): "I want the truth!"

Loan Officer: (YELLING): "You can't handle the truth!!!"

Loan Officer: (Continuing): Son, we live in a world that requires loans. And
the loans must be brought in by people with elite skills. People who thrive
on cold-calling, rejection, and false promises. Who's going to find it? You?
You, Mr. Operations? We have a greater responsibility than you can possibly
fathom. You scoff at sales divisions and you curse our lucrative incentives,
commissions and bonus plans. You have that luxury. You have the luxury of
not knowing what we know: that while the cost of business results are
excessive, it drives in the loans. And my very existence, while grotesque
and incomprehensible to you, drives REVENUE! You don't want to know the
truth because deep down in places you don't talk about at staff
meetings......you want me on that sales call. You NEED me on that sales
call. We use words like discount points, yield spread, fixed rates and
purchase agreements. We use these words as the backbone of a life spent
negotiating with Lenders and Borrowers. You use them as a punch line!

I have neither the time nor the inclination to explain myself to people who
rise and sleep under the very blanket of revenue I provide and then question
the manner in which I provide it. I would rather you just say "thank you"
and went on your way. Otherwise I suggest you pick up the phone and make a
sales call. Either way, I don't give a **** what you think you are entitled
to.

Underwriter: "Did you overstate the income?"

Loan Officer: "I did the job I was hired to do."

Underwriter: (YELLING): "Did you overstate the income?"

Loan Officer: (YELLING): "You're Gosh darn right I did!!!!"

Now if you're in the industry, quit your whining and go out there and sell some homes!

Love you all!!!!!

WAMU....are you wise or stupid?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Tue, 02 Oct 2007 09:58:23 -0500

Hey Wamulians:

My name is Kerry Killinger, and I really need to justify my job right now as CEO of this animal that we call WaMu. Washington Mutual was too boring, and sounded too much like a responsible lender, so we've decided to shake things up a little. If we're lucky, nobody will figure out that just shy of 80% of our portfolio of business is Option Arm (negative amortization) business, and of that close to 55% is stated income....this of course does not include our subprime or Alt A business, but let's not worry about that for now......

You know those stinking corrupt brokers really need to be managed (hint...hint....eliminated). We have implemented the following requirements of our broker community effective immediately!

-- key terms of the loan requested by the broker such as loan
        amount, loan term, whether the interest rate and mortgage
        payments may change, and whether the borrower's pricing
        package carries a prepayment fee, and

    -- the amount of all compensation the borrower will pay the
        broker for their services, including broker points, or
        administrative or processing fees, and whether the broker has
        requested a yield spread premium.

In addition, a WaMu representative will attempt to call every borrower who is represented by a broker prior to closing to review the key loan terms directly with the customer.

"We believe our mortgage broker standard and direct call program should become the new industry benchmark for brokers and lenders across the nation," said Kerry Killinger, WaMu Chairman and CEO. "By adopting these standards, together we can increase consumer knowledge of the home loan process and bring about positive, meaningful change to the mortgage industry."

Well intentioned, but you think an extra call, or follow up mechanism is going to protect the consumer?

How about your underwriters pay attention? Or you price the rest of your products competitively so the consumer doesn't feel that the option arm really is the best option when you clearly know that its not.

If we did that, and took away the overage from our retail staff, we would not make the money we make, and how could I ever retire?

C'mon Kerry....stop playing to the cameras.......who are we really kidding here?

I am befuddled that the more lenders learn about what doesn't work, the more they concentrate on saddling borrowers with risky products that are highly profitable to the company...........

We haven't learned a damn thing, have we?

Land Trusts are the Answer to our Woes.....or are they a Crock of ****?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Mon, 01 Oct 2007 02:30:03 -0500

OK....I've always been asked to tell it like it is.....

Fellow mortgage professionals, were you aware of the latest and greatest thing since sliced bread to hit the airwaves that will help you cure all of your ills, stimulate your sales, move that stagnant inventory, AND do it all with none of your own money.....all that and its perfectly legal? (Well you see, that is the opening pitch at some of the latest 'experts' to show up on the scene promoting the solution to the current real estate market that is fraught with foreclosures).

So, let me show you what some of the websites out there are promoting. The following excerpt was copied directly from a website that

First, it isolates each owner from any liens, judgments or other public record filings from being attached to the property. It also allows for partners to readily and easily sell or transfer their interest to another investor. They can also gift the property to a family member whenever they wish without tax or reassessment. With land trust ownership, it is possible to sell property for cash and avoid the reporting of the sale to governmental agencies, thereby postponing or avoiding entirely tax consequences

Well the only way I know the above statement to be true is with a tax deferred exchange, in the form of a 1031 or a 1033 (eminent domain) exchange...A friend at the IRS confirmed this....Lie #1.

In California , it is possible that the property taxes could increase by several times. In a land trust, it is possible to privately transfer the beneficial interest in the trust (the actual ownership) without so reporting to any governmental agency. This is because a person's interest as a beneficiary of a land trust is considered personal property under the law.

Hmm...it is designed as a living trust, revocable, or irrevocable, and I don't recall those having such a benefit of making the property appear to be personal property under the law. A partner at a firm in Southern California that specializes in real estate law said this is a complete misstatement of the law. Lie #2

The only total cost to you is $295.This includes preparation of your trust agreement , and preparation of one grant deed, a deluxe protective binder for safe keeping of your trust,fees and shipping. Additional charges apply for multiple deeds. Your only other costs are notary and recording fees. Usually less than $30 or $35.

All of this is such a bargain for only $295. Other trusts that don't provide a fraction of the 'alleged' protection, cost two or three times as much. Why are we not all rushing to acquire these wonderful trusts? Oh, and they only accept Paypal as payment; not checks, not credit cards, or any other mechanism with protection. Not a lie...I'm sure the disclosures show that it is merely a disclosure that should be reviewed by an attorney, which of course 99% of people will choose not to do.

I am clearly annoyed that so many crooks come out during the tough times, and unfortunately make it even worse for the unsuspecting souls that listen to this 'advice'.

I will write a series over the next few days on this topic......This should help give you an idea of the concept....

Coming up: Risks to the Seller, Benefits(?) to the Buyer, What is a Realtors role in handling this type of situation, and Why would you ever consider this as an Option?

Please let me know if you want to see more information. Also, I've chosen NOT to list the websites or parties promoting this scheme. Should I add the parties?

Have you ever attended any of these seminars? What difference can we make if we collectively start to see what is occurring, and step in to stop it as a protective step to our industry?

If Justice is Blind, do we turn a blind eye because it doesn't affect us directly? If so, isn't this EXACTLY what caused the current real estate market to spin out of control?

Modern Day Robin Hood Strikes--Mortgage Forgiveness Debt Relief Act of 2007

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Fri, 28 Sep 2007 04:15:26 -0500

I'm here to save you fair Marian, for you knew not what you were doing when you signed those poorly written loan documents that committed you my lady to a mortgage for the next 30 years......

I know that while you have been responsible in making sure that your castle in the Sherwood Forest is well kept, that the common folk have overextended themselves, and my lady, I MUST act against your wishes. Forgive me in advance, but I know that you will thank me someday.....I know it is not proper for me to slap a lady, so please understand that is not my intent.

I have spoken with the evil Sheriff of Nottingham, who is supporting me in writing the Mortgage Forgiveness Debt Relief Act of 2007. I beleive he has seen the light, and understands that I must do this for the greater good. Forgive me madam, for I have sinned.

I have made sure that for all the kinfolk that were unjustly forced to overextend themselves to keep up with their neighbors, that we are providing the relief that they so desperately need to protect themselves from themselves. I know my lady, that some of these are innocents, who did not know what they were doing, but our kingdom is failing, and I must step in.

For all the merry folk who lost their homes, the tax code sayeth that they would receive a 1099 for the amount of debt forgiveness, and I just don't beleive that is the right thing to do, so the following rule will be enacted immediately.

No More 1099's for those who lost their homes. No need to add insult to injury.

Instead, we will do the following to make up for the $1.4 billion it is expected to cost our government over the next 10 years.

We will eliminate the capital gains exemption on second homes and vacation homes.

This will raise $1.97 billion my lady, and while it is more than we need, it will not matter if the homeowner has lived in the house 2 of the last 5 years.....please my lady, we are not eliminating any tax benefits, just tightening the grip on your girdle, so that it is tougher to use the benefit. To confirm what I'm telling you my lady, the National Association of Realtors who represents our nation so well, has put their stamp of approval on it. That should make you feel better my lady.

Damned be those who've been responsible....they can take care of themselves.....I am here to fight for those who knew no better...I hope you don't mind my views oh madam, for you too will thank me for this socialist behavior many many years from now.....after all, you can't take that damn money to the grave with you, and your kids should earn their own money right? Why should you help create their legacy?

UTTERLY INCREDIBLE.....I'm 150% for helping, but is this really the best way? Shouldn't each deal be judged on its own merits?

Prepayment Penalties Waived 90 days prior to rate reset!

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Tue, 18 Sep 2007 01:28:49 -0500

This applies specifically to California loans, though I'm sure there are similar civil codes in other states.

Wow.....I actually like this liberal policy!! YIPPEE!!!

OK, back to reality.....seriously.....I believe that this can help plenty of distressed homeowners....not the ninnies who are whining about their increase......or the ones who took cash out once a year for 5 years straight, but the ones that are TRULY faced with a rate increase that they cannot handle......

California Civil Code 1916.5.5

(5) The borrower is permitted to prepay the loan in whole or in
part without a prepayment charge within 90 days of notification of
any increase in the rate of interest.

Simple but true.....if you are a homeowner in need of assistance, a lender who may have the deal figured out but cannot get around the prepayment penalty, or a realtor who is looking to help a challenged seller, consider this often overlooked part of the civil code.

You will be glad you did......figure that for most clients if they have a $2K monthly payment, and the standard prepayment penalty is roughly six months worth of interest payments, you're looking at a savings of $12K that would otherwise go to the bank, or you could be taxed on in a short sale situation if you fail to make arrangements.

Feel free to touch base if you need additional guidance! Have fun with a fellow friend, lender, or realtor, and see the deer in the headlights look when you mention that you can do this.........

Marketing Update: Do You Know What Your Home is Worth?

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sun, 16 Sep 2007 01:30:55 -0500

Obviously, the real estate agent that hung a marketing piece on my door didn't seem to know either.......

Her office is in the next county over. Shouldn't be that tough right? Put a sign in the front, and slap a price on it.

OK, so that hasn't worked so well.....its been 6 months, and its now $90K lower than when she originally listed it, and still $10-$15K over current market.

I spoke to the agent, and her comment was, "We're only looking for 1 buyer; my seller is confident they're out there and so am I".

Oh, tell me your %^&*$) kidding me! That was the market 2 years ago. I asked her what her marketing strategy was to sell the home.

"Well we have it listed in the MLS, open houses every 2 weeks, and you just received my door hanger, so its starting to work".

So I had to ask how long she has been in the business. Its been 16 months, but only 6 of those have been full time. Zero closed escrows. 4 listings, all tough to sell because each city is so different than the next, that it seems I can't get traction on getting them sold".

I swore up and down I was being filmed, or my friends were playing a cruel joke on me, but I knew it could not be as her face is on the sign, and she was dead serious!

It is clear this is a brutally painful example of the inexpereienced realtors that are out there. These are the very people that I believe give the industry a bad name, and also prevent sellers from being able to move on with their lives. Now granted, this is the ONE difficult neighbor on the entire cul de sac, so it could be a case of the blind leading the blind, though after speaking with her, I don't believe this is the case.

Agents/Brokers; How do you coach this type of agent to perform? Can you take the listing away and reassign it?

Consumers: Why would you ever tolerate not knowing exactly what is going on? What level of experience are you looking for? How do you verify or validate what you are told?

History will have to record that the greatest tragedy of this period.....

Bill Nazur (Nazur Enterprises, Inc. An Advisory Firm; Corona Mortgage) — Sat, 15 Sep 2007 01:52:34 -0500

of social transition was not the strident clamor of the bad people, but the appalling silence of the good people.

Martin Luther King Jr.

Simple question:

Are you part of the strident clamor, or are you working on the road to recovery for yourself, your clients, and your industry?

After everything I've been watching on the news, and the clients I've spoken to for months, I've come to realize that everyone want to just get these issues behind us. We're exhausted at the negativity and overpoliticized crap on the news.

All thoughts are welcome! I'm trying to get a real accurate feel for where we think we'll be 3 months from now (the end of this year).