By the time most people miss a mortgage payment, they are under financial distress and feeling like they have no way out. Facing foreclosure can be one of the most stressful events a person faces. It's our goal to present the options a homeowner has and to assist them with making the best choice. Below is a brief description of these choices.

1)  Reinstatement - If a homeowner has missed a payment, they can reinstate the loan if they pay all the missed payments plus any fees that are due. This can occur prior to the bank sale.

2)  Forebearance or Re-payment Plan - If the problem that caused a homeowner to miss payments is temporary and the homeowner cannot reinstate the loan with a full payment, they may be able to negotiate a payment plan. The lender may also allow the borrower to place the missed payments at the end of the amortization on the loan. This requires documentation showing why the payments were missed and that there is adequate income for a repayment plan to work. *Often if a homeowner misses a payment in the forebearance process, they can end up at the same stage of the foreclosure process as when it started.

3)  Sell the property - A homeowner retains the right to sell a property while they are still own the title. If a property has equity, they can sell it and use the proceeds to pay the debt to stop the foreclosure. However, a homeowner cannot usually sell a property fast enough to make this happen, and often needs to secure permission from the lender to have the foreclosure process delayed.

4)  Rent the property - In some cases, a homeowner can rent a property to keep up the mortgage payments. However, a homeowner must be aware that if the taxes or insurance increases, they will have to pay the difference or face having the mortgage company put an escrow on the property.

5)  Refinance - If a homeowner has equity in the property and adequate credit, they may be able to refinance and pay the past due payments. However, they need to ensure there is an adequate reserve left in order to also pay the increased mortgage payment.

6)  Mortgage Modification - Some lenders will qualify homeowners for a mortgage modification if they can prove hardship and the ability to pay a reduced mortgage payment. In some cases they will lower the interest rate or increase the years of the loan. A homeowner must be able to qualify for this option and show an inability to continue paying the current payment.

7)  Short Refi - A new option for homeowners is being offered by some lenders to allow them to refinance their mortgages by reducing the principal balance and/or interest rate as well. The borrower again must prove hardship and qualify by showing the ability to pay the new loan. This is often done in the same way an FHA streamline refinance is completed.

8)  Short sale - When a homeowner owes more on a property than it is currently worth, they have the option to seek the lender's permission when selling the property for less than the payoff.

9)  Deed-in-Lieu of Foreclosure - A homeowner may have the option to give the deed back to the bank instead of foreclosure. This prevents the banks and homeowners from facing a lengthy process and in exchange they may give up their rights to a deficiency judgment. This usually will only work when there is one mortgage and no other liens against the property.

10)  Bankruptcy - A bankruptcy may stop a foreclosure and allow a homeowner to reorganize debts. However, if a homeowner cannot make the payment after the bankruptcy, the house may be foreclosed upon anyway. This also makes it extremely difficult for a homeowner to sell a property once they start this process and can be worse on a homeowners credit than a foreclosure.

11)  Servicemembers Civil Relief Act (SCRA) - This bill provided protection to military personnel that are in foreclosure by providing temporary relief from paying the mortgage payment. They must show the mortgage was obtained prior to active duty and that the military service affects the member's ability to pay.

Please tell your friends and family that they have options if they are facing financial distress. It's important to work with aprofessional before it's too late.

Everywhere I go, as soon as someone hears what I do, they inevitable make a comment like, "Oh business must be hard for you right now." or "How's the market doing?" I really like these opportunities to enlighten people to what I really do, why I enjoy my job and answer their real questions about their market.

Actually last year was a fantastic year for me and I continue to work to improve my customer service and work by referral so I can keep this momentum going. I've taken more training in the last year to improve my skills and have started a blitz this quarter to reach out more than before to my clients and agents. I love my job because it's different everyday. No two buyers, sellers or transactions are alike. While some are more difficult than others, the challenge to work through the process and complete a successful transaction so that my client is represented to the best of my ability is rewarding. It takes talent, guts, willpower, compromise, trust and a lot of communication with all the parties involved.

As a broker it's my job to train and educate my agents so they can better serve their clients. While this can be challenging at times, it's also extemely rewarding. I get to see them grow (just like children) and it's very fun to watch a lightbulb go on when understanding hits them! Not only that, but I also have the added benefit of keeping on top of the market and increasing my own knowledge so I'm prepared to teach.

So the question I often ask back when that inevitable question is asked is "What market?" You see real estate is not one big commodity. That's why agents specialize and get designations to better serve our clients.  As sales people we have a target market. For instance, right now the luxery home market in Scottsdale is doing poorly and they have over 20 months supply of inventory. However, right next door in north Phoenix, we have less than a 10 month supply of inventory and sales in January were up almost 50% over last year.

I really enjoy educating people, and truthfully I think it serves the public to be better informed so they can make wise decisions about one of the largest purchases in thier lives. Unfortunately, the media would prefer to sell a story than print real statistics so I'm working to provide the information that people really need to see.  Below are links to the latest Arizona Regional MLS quarterly report and the sales report for 2001-2008. Considering that the housing affordability index shows this as the second best year ever since the 1960's, I think it's a great time to buy real estate.

I have to say this month has been amazing! Everyone in my office is serving more people and seeing their clients achieve their real estate goals. I know this will continue throughout the year and I'm proud to be on a team that is making a difference.

4th Quarter Market Report for Phoenix - http://www.armls.com/pdfs/ARMLS%204q%202008.pdf

Phoenix Home sales 2000-2008 - http://www.armls.com/pdfs/SoldChartJan09.pdf

Housing affordability index - http://awesomerates.mortgagexsites.com/xSites/Mortgage/AwesomeRates/Content/UploadedFiles/EOM_Affordability_Flyer_m_taylor%5b1%5d.pdf

If you are someone you know would like more information about a specific market, please feel free to contact me. If I can't answer your questions, I'll refer you to an expert who can! 

I don't normally vent online, but I've got to confess that I'm a little peeved and I think some of you might understand.

The background: For two months I've been working with a buyer who is renting a home that is being foreclosed on. It's been difficult for them adjusting to the news that they have to move so soon. I've sent them information on homes and they got prequalified.

They've been driving neighborhoods and we narrowed down the list to a few homes they wanted to preview. The wife (we'll call her Jane) had her heart set on one particular house, which was just reduced from $245,000 to $200,000, so that's where we started our tour. After seeing all the homes, they decided the first one was indeed the home they wanted to write an offer on so I called the listing agent. I explained that we would like to put an offer on it, then I asked the fateful question, "Have you received any other offers?"   

It's at this point the story starts to get depressing. The listing agent explains that she has received two offers on the property for $260,000, but the bank will not accept an offer less than $284,000! Did I mention it's listed at 200k?  I asked her why she reduced it to $200,000 when she had offers, and do you know what her response was?  "To get more lookers."

So we're standing in a house after a whirlwind tour ready to fill out a contract and I now have the joy of telling my clients that the home they want is not within their qualified price range. Understandably they are upset and a little depressed since nothing else compared to that home (it's no wonder!). Honestly, since they were playing the comparison game, they couldn't even remember the other homes and now don't have a desire to look since this was such a disappointing experience for them and they are afraid to get thier hopes up again. I'm working to keep a positive attitude and remind them that the right house is waiting for them.

I understand wanting to price a home competitively and hoping to get multiple offers. However, in my opinion this agent was not serving the best interests of her client (an agency violation). Not only that but it wastes the time of buyers and their agents.

Needless to say I am trying to let it go and continue serving my clients. However, after a wasted day, I was almost as frustrated as they were! As a buyer's agent, I don't appreciate these kind of games. My hope is that this listing agent truly becomes more concerned with representing her client honestly and as best as possible without wasting the time (and gas money) of others. Ok... now I've said my piece and I'll rejoice with my clients when we finally find the right home for them.

As I contemplate all the blessings in my life, I wonder how many people think of Thanksgiving as just another holiday to gather family, eat loads of food and watch football (or if your still a kid at heart like me the Macy's Thanksgiving day parade). It's so easy for this day to be passed over between Halloween and Christmas because the advertising and stores don't focus on it.  In my case I truly want this to be a day full of Thanks and Giving.

I have heard a lot about stating what you are thankful for and even writing it down.  I think it's very important to cultivate an attitude of gratitude and studies show if we say and write what we think, it will be reinforced.  I am grateful for my relationships with God, my husband, mom and brother. I'm also grateful for my job (a great passion of mine is to help others find a wonderful home and to train others to fulfill their dreams), my agents who are some of the most amazing people in the world, my closest friends who continually push me toward greatness and my church for giving me an outlet to serve and be refreshed.  And I'm also thankful that I live in a great country and have been blessed with many things that most of the world could only dream of, including food to eat every day, a car and a home of my own.

However, how about saying "who" we are grateful for.  I'm not talking about just the line where you casually mention your "family and friends." Have you told someone lately (eye to eye) how grateful you are for them in your life?  Did you tell them why you appreciate them?  My husband and I had a discussion this morning about self esteem and the need for affirmation, which is maybe why I'm thinking of this.  Often times I think we don't truly give this free simple gift to people. Why not tell someone how special they are by giving them a list of the attributes you admire the most? (beautiful, smart, talented, courageous, gracious, hospitable, leader, kind, encouraging) How about telling someone today why you are grateful for them! 

The second part of this day is about giving. Often with our family, we have had throughout the years, someone join us who didn't have anywhere to go. I can't imagine what it would be like, but in putting myself in their shoes I know I would be "giving thanks" for an invitation. In the spirit of Thanksgiving, I would challenge you to look around you and see the many people without a home or family and offer them simple kindness. You'll be amazed at how it changes your own life and blesses you more than the other person.

Don't let this weekend go by as just another "Thanksgiving." Truly make this day about being thankful for what you have and giving to someone in need!

A great mentor, Jamie San Souci-Novac, made the statement, "Operate in curiosity rather than in judgment," during a Buffini and Company mentor training.  This statement greatly affected me and I have made changes to the way I operate my business and behave toward others because of it. 

How often do we judge others by their actions, but ourselves by our intentions? 

Often times what we say and what we mean don't match. Yet, we tend to condemn others by what we think they said or did, rather than trying to discern what they truly meant. I think we could all serve each other if we would stop leaping to conclusions and focus on understanding each other.

Many times in business, this new philosophy has served me and my team. Since I tended to leap to false conclusions or judge others when it was not appropriate, it has been a struggle to improve this area of my life, and yet I find it liberating to build a bridge of communication based on understanding. 

Below are some questions you can ask the next time a situation arises that temps you to assume rather than question someone's words or actions.

• How did I contribute to the misunderstanding?
• What was your objective? Did you intend for this to be the result?
• What were the circumstances on which you based your decision?
• What preconceived notions do I have that cloud my judgment of others?
• Am I assuming the best about the person?
• How did my judgment hurt others?
• How could we do things better?
• Do I often react quickly instead of taking time to respond appropriately?

While there are lots of questions we could ask both ourselves and others, it is important first to recognize how we created the problem through our own assumptions and then to seek the truth. Most often I have found that by asking questions, most miscommunications can be resolved quickly and easily and most actions can be explained.  Take time to examine yourself and see how you can improve both your own actions/communications to reduce others misconception of your intents, and take time to understand others to look beyond the initial evidence.

To be or not to be... that is the question?

A while back, when I taught a group of women, I started with a short excercise.  I asked all of them to turn to someone next to them and answer the question "Who are you?" in 15 seconds. (How would you answer that question?)  What do you think happened?  When it was over, I asked everyone to raise thier hands who had answered that question by describing what they do, and it was almost unanimous.

I think it's sad that as human BE-ings we focus so much of our worth on what we do, accomplish or achieve in life.  Goals are important and it is equally important that we love what we do in life.  But our focus should be inward and not outward. Long standing relationships are built on an attraction to other person because of who they are, not what they do for a living. When you start to understand who you are, it helps bring clarity to your purpose and makes what you do in life much more fulfilling.

I challenge you to do two things:

1) Make a list of characteristics you'd like in the people on your team. Then evaluate whether you share those same qualities.  I have to do this in order to focus on who to recruit for my business.  It's not always easy to determine who is a good fit and who isn't and sometimes the hardest thing to do is to let someone go who won't fit in.  It also means I consistently need to do my own introspection to determine if I'm on course and exemplifying the qualities I want to see in others. The key is to find out if you have higher expectations of others, or of yourself. (Hopefully you expect more from yourself and you're not judging others by a standard you don't keep)

2) This week write down the things that characterize you. (make you unique) Then write the characteristics you want to have and hang around others like that. You'll find that to develop in areas of your life, you'll need to find others who are successful that you can learn from.  Find a mentor and ask them to keep you accountable so you can develop your character to what you want it to become.

I hope as you seek to understand yourself and others that you find areas to imrove in and satisfaction in both who you are and in what you do!  I wish you the best of success.

Uggg... Just thinking about them is bad.  Two people I know are studying to take important (career deciding) tests this week.  It reminded me of school days when I would study, then cram, then study some more and finally when I couldn't stand it anymore, take a break.  It was stressful and the pressure put knots in my stomach.  Needless to say I feel for them and I think we all know what it's like to be put under the gun with a deadline.

There are many people in this economy that are facing an even bigger test and unfortunately the answers are not an easy multiple choice.  So what do you do when life gives you lemons?  The common answer is to make lemonade.  But what if you don't have the pitcher, sugar, water and spoon? 

This is life's test!  What do you do in hard times?  What decisions do you choose to make? Are you making wise decisions that will carry you forward or do you tend to give in, give up or give out?  Training in my business isn't always about sales.  Sometimes, it's about personal growth and learning how to work with others.  Many agents are frustrated, and willing to give up a career they love rather than fight for a future. Others are dealing with emotional clients that don't know how to make good choices and are depending on the advice of a trusted professional. This is why it is so important to stay calm, level-headed and seek council.  If you are facing a difficult decision, let me encourage you... you are not alone!  Below are some tips to make things a little easier.

1) Don't give in, give up or give out.  What does this mean? 

     a. To give in means to allow the situation to overcome you. Don't look down on yourself and don't speak negatively.  This will only perpetuate the problem. When the going gets tough, the tough get going. Use positive affirmations and start looking for a solution.

     b. To give up is to quit. Some believe it is easier to walk away than face a problem.  But the problem with problems is that they are usually like a boomerage,if you try to get away from them, they'll only come back. Face the situation and admit where you went wrong so you can learn from your experience.

     c.  To give out is to project your problems on others. It's ok to lean on friends for support but to complain, gossip or bad mouth a person, situation or company is not the answer. Don't spew out your anger, bitterness or resentment on others.  Rather than focusing on the negative, find positive support.

2) Put relationships first.  Try to see the value in people and understand things from their perspective.  Usually that means looking inward first to start fixing the problem. Focus on one thing you can do to improve yourself that will positively impact the relationships around you.  If you can't think of anything, ask for feedback from some close friends you trust.

3) Seek wise council.  The saying about the blind leading the blind is usually true. If the people around you are experiencing similar problems or have advised you poorly in the past, it's time to find a new mentor or advisor. Sometimes just having a different perspective can help you find a resolution.

It's difficult to face life's tests sometimes but remember "This too shall pass." Make good decisions to keep moving forward one small step at a time. Keep your head up and remember when you're having a bad day, make lemonade.  And maybe (just maybe) it will make you smile.

While this is not usually something I would blog about (Death is never a "fun" topic) I've found myself contimplating how to help people after the experience I've had this last month.

I'm usually very upbeat, but I want to share with you a different perspective.  This month has been a challenge for our family with my stepdad being killed in a skydiving accident in Colorado and my husband's uncle passing away from cancer.  I immediately left to be with my mom and provide support.  Little did I know, the amount of work that would be required during that time.  For those of you who have never experienced this before, I liken it to planning a wedding (chapel, flowers, invitations, minister, etc) in three to four days.  The situation was made worse because there was no living trust or current will in place, so dealing with the aftermath will take a lot of time.  I believe if he had known this was going to happen, he would have prepared better so my mom would not have to deal with estate problems in addition to her grief. 

Because of this, I'm encouraging everyone I know (for the sake of your loved ones) to plan ahead.  I understand that death is not something we want to think about but now I understand the importance of planning for it.   

Because I value relationships, I want to provide some information that will benefit you and your family and inspire you to action so your family won't have the same experience we had.  Below is a link to a great website recommended to me by my accountant.  It contains important information and a simple but thorough legacy book that can be purchased to give clear instructions to your family.

  www.familyloveletter.com

In addition, I want to highly recommend that you make an appointment with an attorney to start planning your estate.  If you don't have one, I'd be happy to provide the contact informaiton for mine.

We don't know when we will die, so please take care of your business so someone else won't have to. I know having my estate already planned has given me a peace of mind through all of this.  We have all heard the saying, there are two things in life that are inevitable... death and taxes.  Contact a professional to make sure you are prepared for both! 

I know this is not as positive as my normal stuff, but my intention is to give you food for thought on a serious subject.  I hope this finds you and your family well.  And I pray you make the choice to plan your estate if you haven't already done so.  For those of you who have, bravo!   Your family will be thankful.

All sales professionals should work diligently to build their database, but more importantly we should be building relationships.  In any business, working by referral is significantly more rewarding than spending precious time and marketing dollars to find new clients.  Clients who are referred to you understand the person who sent them trusts your character and service and referred them simply because they care, not because they gain anything from it. Developing personal relationships and reciprocating referrals with those you do business with makes your job more pleasant and creates a consistent source of incoming leads.

Below are some questions you can ask yourself to rate your networking skills. 

• Do you have a large network of people to call upon when you need help, information or a resource? 
• When you meet someone new do you record and file information about that person within 24 hours?
• Do you add someone to your database of contacts at least every week?
• Do you ask others what you can do to build their business or help them succeed?
• Do you follow up with new contacts right away - write a note, make a phone call or send an article?  If you don't have a specific reason to contact them, follow up in 6 months.
• Do you keep track of special things that matter to your contacts like their family, hobbies and achievements?  How much do you really know about the people your clientele, friends, etc?
• How easily can you find out when was the last time you were in contact with someone?  Are your contacts organized?
• When you mail out something - a resume, sales letter, change of address, can you count on having the correct name spellings, titles, and addresses for everyone in your network?
• Do you know about and acknowledge special dates like birthdays, anniversaries and graduations?
• When you want to give a business gift can you count on your file to provide you with an excellent idea of what the person might like? Use a concierge form to have clients and vendors document their likes and interests.
• Do you make it easy for others to add you to their networking by providing your business card, notifying them of address changes and informing them about career progress?
• When friends ask you for a good resource, do you have trouble in providing one?
• When the moment comes, can you really "wow" a customer, prospect or potential employer with special information or ideas that show you care?
• Do you regularly educate your network of your preference to have the name and contact information of referrals so you can be proactive, rather than them giving out your information and waiting for the referral to contact you? 

Hopefully this will prompt you to evaluate your skills and work on ways to improve them.  Remember that networking is not about handing out your business card!  It is about meeting like-minded people so you can help each other succeed.  Always ask, "What can I do to build your business?" or "What kind of client are you looking for?" and then keep your eyes and ears open so you can send those contacts referrals, information, advice or items of value to show you listened to them.  When you seek to build others, you will then be ready to receive!

I just have to say it's been a great week.  As a Diamondbacks season ticket holder, I must salute my team who is in first place in the NL West!  Way to go!  It was also great to find that management worked out a deal with Eric Byrnes, who is one of my favorite players to watch. 

Now onto the real estate related part.  Since I'm a big fan of the game, I could postulate on the many correlations between baseball and real estate, but I won't bore you... at least not today.  However, I will say that building good teams and working hard is very important in both industries.  

What I would like to talk about is using tickets as gifts.  I've given tickets to clients who I know enjoy the game and I feel good about personalizing the gift.  However, recently I sat by a business man I met at a game who informed me that every time we give tickets as a gift, we need to track the date of the game, price of the tickets, name of the giftee and their social security number.  Has anyone else ever heard of this?  While he shared his personal experience about being audited and having these things requested for the write off, I find it hard to believe we should have to go to such lengths. 

At this point, I think I would prefer to give a different gift or forget the write off rather than ask for a social security number since I don't believe most people would feel comfortable disclosing that information to receive a gift.  Has anyone else run into this before or been audited without this information?  Anyone have good advice about an approach I could use with those I give a gift to or would you avoid the situation?