With the sweeping platform of liberal spend and tax programs that 10 generations cannot pay back, we are now faced with a constant stream of bank regulations that affect lenders, and will also affect us.
Fannie Mae is now condusting their own appraisals behind those the lender or servicer orders. Fannie takes its own seet time to get this done, too. This can stall an otherwise smooth short sale process, and cause a great deal o f anxiety for a buyer, which is where constant communication through the process with the buyer's agent is important.
States are changing the rules on who can work with Sellers who are being foreclosed on. the rules of engagement are important to know and can keep you out of trouble with your state's real estate commission.
Banks are changing their rules on how they approve a short sale. Some of them are changing the rules weekly. One trend tht I find very disturbing is that many banks have outsourced their loss mitigation departments to Pakistan and India, where a bunch of script readers are not very helpful. some have very well trained representatives who are trained to speak in US dialects. I have trapped many by using geographic landmarks which are not located where they claim to be. This is producing some delays in processing the approval, and causes many unnecessary delays.
Something else i am using to work more as a partner with a lender is a trend analysis of the subject area. I start with the zip code, and work back to the street for the subject to provide a much more detailed picture of what the subject is worth now, and will be worth later. I submit this with my package as a front-end BPO, and sometimes the lenders will use this compared to their own to approve the deal. I have MLS data that dates back many years,a nd this provides me the ability to build a trend chart of a property, including the number of times it has been sold and for what prices it has sld or listed at historically. This is a good way to utilize my education outsde of real estate, and justify that MBA.
I find the CMA we have all been trained to use is an inadequate tool for any real estate transaction ebcuase of its statistical inaccuracy. By getting a better sample size and using simple spradhseet formulas I can produce a more statistically accurate model for market analysis.
As many have said negotiation is always a key component in the deal. You have to know who you are negotiating with, though. many negotiate with the front line personnel, but I wait more patiently and get to the actual negotiatorAmny have worked with me on more than one transaction and know I will not abuse their goodwill with a price model that is outlandish. That builds a better working relationship that allows me better access to the lender.
Finally, I would encourage everyone to realize that the market we are in is the market we are in. It doesn't matter that there are a lot os foreclosures, or many listings run as short sales. What matters is our abiliity to get a deal to the closing table. We cannot affect the market we are in, until we actively participate in it, and then work to change the composition of the sales in it. Sticing our heads in the sand will not produce sales. We have to determine that we are here to hel pa public understand where we are, and then set ourseleves to the purpose of making it what we want it to be.
Today, I am praying for the swift recovery of a fellow Realtor in my office. He went through surgery on his heart yesterday. He has been through this before, but any surgery is serious.
As I sit here this morning, getting ready for the holidays, and all that these preparations entail, gifts, cards, lights (which my family is thankfully taking charge of, so I can complete some things that have rto be done before tomorrow), food, and the string of various parties to go to, I am left with a great deal of thankful thoughts.
Our son arrived safely home from school, beaming about his first college semester. My girls were so happy to have their brother home for a while. There has been a flurry of fun activities with our girls playing their strings for the church Christmas pageant. I am humbled by ther talent, all three of them. My wife has supported me through the throes of all that has happened this year. Both the good and the bad.
In spite of this, I think of all the peopel, like my friend at the office who have to spend Christmas in a hospital bed. Old and young, rich and poor, they are there, and som ecannot receive a package, or cozy up around a fire.
I also think of those who are on the road or who must work on the holidays. In a strange economy, many have more than one job this year. I hope they can have time to spend with their families this holiday season.
I am thankful to be able to pray publicly, without fear of interference from the government. Not that I would stop, in any course. I am thankful when those in power have the wisdom to restrain their urges. I am thankful for those who preserve my freedom, and I pray daily for the safety of our soldiers around the world who don't get to spend the holidays at home. I pray for their safe return into the loving arms of their families. I am thankful for a home to live in. It is easy to snub those who are unfortunate to live "in the open."
There aren't any fancy graphics or special "wrapping" this time. I am so sorry if this disappoints those of you who might want to see a video game here. This time around, I am just thankful for this space and those who provide it. I am thankful for those of you who share the time to read what I muse over, too.
Have a wonderful holiday, and be thankful for who you were made to be. I'm thankful for you.
Lou Farris, MBA "That Realtor Guy In Shorts" Broker Consultant Keller Williams Executives Realty, LLC 200 W Plaza Dr Suite 200 Highlands Ranch, CO 80129
By now we have awakened from our Tryptophan induced comas, and the crash after the Black Friday sales, and Cyber Monday madness...
Are things really that bad, or are we being grossly misled? I for one think that the scales may actually bend a little more to the latter than the former. Since we all know bad news sells a lot of Neilson points, and print space we must come to the logical conclusion that if we see it in print we should discount the news. How much is a good question.
Here is an interesting fact: nearly 1,000 homes sold last month in The Denver, Colorado metropolitan areas last month, under $200,000, that were a minimum of 3 bedroom 2 bathroom homes.
If that same trend has persisted in each month, and ironically it has been pretty consistent, then around 11,000 homes in this category alone have sold so far this year.
This means that the offset to foreclosures is that about half of the foreclosures are offset by sales in this category.
I don't know what it is like in your areas, and I don't know how your MLS presents data for analysis, but the Denver Metrolist data shows me something that I can be happy about, Before Christmas, which is that things are not nearly the way they appear to be, based on facts. I can also see where the local media outlets are preying on people's fears, and distorting facts to sell ratings.
Yes, we do have a lot of foreclosures, but the market is not as bad as we have been led to believe.
What's it like in your neck of the woods?
Lou Farris, MBA "That Realtor Guy in Shorts!" 720.255.7148
It sure would be easy to be upset. the media is spewing all sorts of things about the economy. we hear the constant strains of recession, depression, inflation, etc. We see this and another public servant exposed for extra- something dealings that get them into trouble. All around us there seems to be a lot to despair of, doesn't there?
I am thankful for the times we live in. Why?
I am healthy, and don't look my true age. My wife and I have been faithful partners in our marriage, since before we were married. I have had a best friend who holds me accountable, and who knows my darkets secrets and fears, and holds neither against me. My wife has been a contant and beutiful reminder of all of the blessings life has to offer.My children have no real hang-ups, pin-ups, or abuse issues, from intrenal or external sources. they are well-rounded peole, well-grounded persons, who are self-confident, and are not swayed by the whims of those around them. My wife is teachnig young minds, doing what she is passionate about, and making a difference in those lives fro the better. I am pursuing the things I am passionate abbout, and love what I do in real estate. I have many good freinds, and more acquiantances and am always meeting new and intresting people. I have freedom to pursue my dreams. I am able to make a difference in lives, wherever I go. We never miss a meal, no matter how bare the cupboard looks. Somehow a decent meal bursts forth, no matter how bereft of ingredients things first seem. We have decent clothing, clean and attractive, no matter whether their age. I have a good education, and so does my family.
Best of all, no matter what happens to the Dow, or S&P 500, the birds still sing, and that silly squirrell outside my window dances around entertaining me, and giving rise to creative thoughts. No matter how bad the media says things are, i constantly see people finding ways to help each other. Daily i find people doing some amazingly unheralded things. Wall street panics, but the seasons do not stop changing, and the trees in my yard still grow and then shed (lots of) leaves. We are getting deliciously sweet grapes from our vines, planted after we built this house. We have been privilieged to watch many families come and go in the neighborhood, and are one of the few families who are original homeowners here.
It's all about your perspective. This isn't some naiive feel-good kind of sensation that passes like when your foot falls asleep. I am truly thankful for these things. I am thankful to be able to solve simple and complex problems in real estate for people. I am grateful for the opportunities i have to serve and the new ways i will find to do so.
In 2008, Douglas County Libraries moved from 7th to 4th place nationwide among libraries serving populations of 100,000 to 250,000.
The ratings are based on statistics collected from nearly 9,000 public libraries measuring 15 factors. The focus is on circulation, staffing, materials, reference service, and funding levels.
Many of us will face a referendum or amendment, requesting monies for education and libraries this year. please support them. We compete intellectually with the world, and succeed to the degee that we provide ablities to teachers, students, and schools to excel. Education and libraries go hand in hand.
I routinely have 20 or mmore books borrowed, in addition to those I purchase for my personal collection. When I recycle books from my library, I donate them. I often save a year's subscription to particularly interesting magazines, and donate the series to the library.
Still, their costs are rising, too: benefits, heating, lighting, and water, along with improvements and facilities maintenance.
Libraries are an important part of our culture, as they help document and preserve it for our posterity. Please remember this at your polling place and support your local libraries.
Congrsatulations to the honor mine received. Click the link to find out about it. Good news deserves posting!
Here is how executive salaries are being worked on by the Department of the Treasury:
October 14, 2008 2008-10-14-9-5-0-19994
Treasury Announces Executive Compensation Rules Under the Emergency Economic Stabilization Act
Washington
Troubled Asset Auction Program
Capital Purchase Program
Programs for Systemically Significant Failing Institutions
-30-
- The Treasury Department is currently developing a third program to potentially provide direct assistance to certain failing firms on terms negotiated on a case-by-case basis. Treasury is issuing guidance for the executive compensation standards that will apply to the firms participating in such programs and their senior executives (Treasury Notice 2008-PSSFI). These standards are similar in all respects to the Capital Purchase Programs executive compensation standards described above, with one significant difference. In situations where Treasury provides assistance under the systemically significant failing institutions programs, golden parachutes will be defined more strictly to prohibit any payments to departing senior executives. - The Treasury is issuing guidance for this program designed to provide equity capital under standardized terms directly to certain financial institutions, further strengthening their capital structures to facilitate their continued lending in the capital markets. Any financial institution participating in the Capital Purchase Program will be subject to more stringent executive compensation rules for the period during which Treasury holds equity issued under this program. The financial institution must meet certain standards, including: (1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains, or other criteria that are later proven to be materially inaccurate; (3) prohibition on the financial institution from making any golden parachute payment to a senior executive based on the Internal Revenue Code provision; and (4) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive. Treasury is issuing interim final rules for these executive compensation standards.- Treasury continues to develop a program to purchase troubled mortgage-related assets through an auction format, and will be issuing program guidance for this program in the coming weeks. Treasury is issuing guidance for the executive compensation requirements that will apply to firms participating in this program. As prescribed by the Act, any financial institution that sells more than $300 million of troubled assets to the Treasury via an auction would be prohibited from entering into new executive employment contracts that include golden parachutes for the term of the program. Treasury is releasing Treasury Notice 2008-TAAP regarding this restriction. Furthermore, under the Act, (1) the financial institution may not deduct for tax purposes executive compensation in excess of $500,000 for each senior executive, (2) the financial institution may not deduct certain golden parachute payments to its senior executives and (3) a 20-percent excise tax will be imposed on the senior executive for these golden parachute payments. Treasury is releasing I.R.S. Notice 2008-94 regarding these new tax rules.- The U.S. Treasury Department today announced the development of three programs under the Emergency Economic Stabilization Act and corresponding executive compensation and corporate governance standards. These standards generally apply to the chief executive officer, chief financial officer, plus the next three most highly compensated executive officers. Any firm participating in the following three programs will be required to adopt these standards.
Excerpted from the U.S. Departmetn of the Treasury - as public informaiton.
The bailout passed, and look at the good it did. The markets opened another 500 pints loawer, and continued to take a nose dive.
Is there something I have missed? Wasn't the bailout supposed to shore up the economy and restore market stabililty? Forgive me if I am skeptical, but so far I can see a return to 1987 levels for the Dow. In fact I have been saying the market would make a major correction for the last couple of years.
Sadly, we are approaching the 9500 level I thought we would floor at. however, it looks like confidience is shrinking with each day.
Which returns me to the question... when is all of this market confidence suppoed to be restored, anyway?
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Douglas County Libraries is moving on up!
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