With every article about the real estate market that appears in either my inbox, my TV or my doorstep, my opinion is that our industry is becoming more bi-polar everyday.
Often, on the same webpage, you will find articles with conflicting headlines; one tells us that more homes aren't selling, while the next article tells us how robust the 'mortgage applications' index looks. To the layman, this can only confuse and scare them more.
Yes, more homes are selling than LAST MONTH because we're getting closer to one of our peak seasons (well, used to be anyway) but we're selling less from year-to-year. And the reason mortgage applications are up is because it takes a broker several attempts with different lenders to find a home for a borrower. So in reality, the application number is higher, but probably not the APPLICANTS number. And I don't even want to talk about refis.
But where the market is really getting scary is in foreclosures. I do mostly commercial and institutional loans now so I don't really see much in the way of residential. I do however get a referral every now and again and it's important to me to do my best for business associate because now there are two reputations at stake.
But when I get a foreclosure, I usually do those for free.
I'm on my third one this week. That's how busy I am. I now get more foreclosure referrals than I get junk mail, many of which just cannot be saved. And to be brutally honest, I've told more people more truth than I think they've heard in a long time.
I hear stories about investors parking all night across the street from a property they want just to scare off other investors. I heard one this week about an investor who called a client of mine threatening to take my client to court if they didn't sell her their home. And my new favorite, a client was followed from home, to work, to lunch, to work, back home - we know this because the investor called the client about 20 times that day telling them "I've got the paperwork right here, and I'm in the parking lot. All you have to do is come out and sign."
sigh.
Refis are tough, short sales take too long and I do most of my work with my fax machine and the redial button. I talk to "lawyers" (the ones who 'work with a lawyer') like they're children and I find myself ducking calls from "friendly" investors all day long. And while it may hurt some feelings to read this, many homeowners just aren't savvy enough to know that "No, you can't profit from your own short sale".
I know the industry is tough right now, we're all feeling it. But I see examples everyday of people who are barely surviving it.
I know there have to be others out there like it - but this one is new to me. It's getting some bad press in the mortgage community already but I'm sure it's on someone's screen right now.
Can't you see it....
"Honey, come see this."
"Hmm, do you think we should care about the graphic they stole from what looks like NWTech.com."
"Well,"
"What about the photos, they took this one off Fotosearch.com - they didn't even cover up the watermark. And this image doesn't even have American currency."
"Yeah, but... an extra 50 grand would get us that pool. And we can put the rest towards the kid's college."
"Whatdaya think?"
"Well, they do have a website. And, well, why not?"
"I'm going to go watch American Idol, want me to TIVO it for you?"
Remember ladies and gentlemen, you can't legislate good sense.
CEOs by definition are the guy/gal in charge. The one that eats the most snow and gets the best view as a friend of mine was fond of saying.
And given that lofty and admirable position you expect a few things; intelligence, a certain degree of decorum, leadership and vision. But, given the latest scandals over the last few years (Enron, WorldCom, Adelphia - I could add in Home Depot and Country Wide but why poke fun) the last thing you expect is honestly.
Not from CEO Donald J. Tomnitz of DR Horton.
Read on, this from AP via Forbes - and they get all the credit for the reporting and the article.
Associated Press D.R. Horton CEO: 2007 Is Going to 'Suck' By JEREMY HERRON 03.07.07, 7:17 PM ET
The chief executive of the nation's largest homebuilder by volume said Wednesday that 2007 would "suck" for his company, providing the clearest signal yet that a recovery in the battered sector is farther off than many thought.
Speaking at an investor conference in New York, D.R. Horton (nyse: DHI - news - people ) CEO Donald J. Tomnitz said he expects to get more pricing power in 2008 but not before home prices continue their decline this year as builders try to sell the glut of houses currently on the market.
"I don't want to be too sophisticated here, but '07 is going to suck, all 12 months of the calendar year," Tomnitz said.
He said excess inventory, built up during a five-year boom cycle that saw land purchases and housing construction reach all-time highs, is the biggest problem facing the sector.
After months of declining prices and home sales, there were signs late last year that the market had reached bottom, prompting many to predict a recovery by midyear. But builders have had to keep curbing construction volumes and offering price discounts.
Tomnitz said Horton is currently building 26,000 houses, down 35 percent from its peak of 40,000, but further cuts are coming.
It is going to be "tough" for the Horton to reach its internal goal of 50,000 closings in 2007, based on the current construction figures, Tomnitz said. That would put 2007 closings below the year-ago level.
The executive said Fort Worth, Texas-based Horton has taken all the charges it could legally take to write down the value of undeveloped land and to forfeit options to buy land, but he did not rule out further hits to the balance sheet.
"We may have more impairments coming. We'll know that on a quarter-to-quarter basis," he said.
The charges are an admission that the company will not be able to develop properties for a profit, but they also free up cash for other purposes.
"The future is not as bright as we would like it to be, but we feel we're in a strong position going forward," the CEO said.
This isn't the first time Tomnitz has offered gloomy predictions for 2007. In January, Horton announced earnings had fallen 64 percent in the last three months of 2006. At the time, Tomnitz said the slowdown had begun in early 2006 and that the market would eventually bottom out this summer.
"We don't see anything on the horizon that would change that opinion," he said then.
Again, the truth hurts - but at least it's truth. :)
Actually, I'm more than that. I'm, well, in the words of Snoopy, I'm *&^$$(.
And a whole lot more. And this post is so that I can vent. I'm going to vent for a few sentences and then I'm going to walk away and then I'm going to vent some more and then walk away.....
Deep breath. In with the good, out with the bad. And my mother always said all that therapy was just money down the drain. In fairness to my therapists, they probably thought so too.
Deep breath. Okay, here we go....
Ohio, in it's infinite legislative wisdom several months back decided that they hate people. I know this because for the last two months to the day, I have been on a daily basis trying to place one loan. Not sixty, one.
Why so long?
Because you're to stupid to know when to quit? Yeah, I'll take a little of that.
Because you suck at this job? Yeah, I'll have some of that too.
Because Ohio hates people? Oh yeah, add a bunch of that!
Senate Bill 185 was designed to right all the wrongs that us evil-doer, money hungry, godless heathens (aka Mortgage Brokers) have brought upon mankind. The invention of the ARM, (that was our creation), 125% financing (yep, I was in on that one myself), and the best one of all - mortgage fraud care of the No Doc loan (sigh, yep those were the good ol' days, I remember them well).
So Ohio decided that they would cure their home financing ills with a well placed, intelligent design-like, brush stroke that was the proverbial mile wide. A bill so well conceived, so well intentioned - how could we not have thought of this before? The public will truly love us for this and our re-election is assured. Grin. Grin. Grin.
Oh, and in the county that my buyer's would be home is in, just raised their taxes 42%. Now, I don't know my geography all that well, but unless there is an ocean next to Ohio that I don't know about or "there's oil in them thar hills", a 42% increase in taxes is well, stupid. Yep, stupid covers it nicely.
So, the earliest results of SB 185? At last count, 16 lenders no longer do 100% financing in Ohio. That isn't to say that a full doc, 700 score, with 10% down, family of four buying their second home in four years can't get a loan. But if you work for tips, your done.
Here's a list of people that can't buy a home is Ohio. As you read this, think of how many people this could total up to. Not just in Ohio, but your state, too:
Barbers, hairstylists, pizza delivery guys, bartenders, waiters, waitresses, cab drivers, dancers, valets, landscapers, paper guys, sky caps, one man shop painters, carpenters, handymen, electricians - all of these people cannot get a stated loan in Ohio.
Recently, Illinois tried a program similar to what seems to have caught the Ohio legislature in a such giddy, bill-writing mood. Their's had an equally cryptic name; HB 4050 or "Chicago creates 'Social Profiling'". Now this program was only in 10 zip codes. I have a good friend of mine who was affected by this program to a small degree, so I know a little something about it. And how did there's turn out? Well it was recently suspended after it was discovered by the same geniuses that enacted the law that surprise! - in those 10 zip codes sales of homes dropped 50%! And that was just the first half of 2006. In comparable areas, they dropped 20%. Lenders bailed on the state and some are (I love this part) actually being sued by people that couldn't get a loan from a lender that the state determined shouldn't loan to these people in the first place.
Read that last sentence again - you're right it doesn't make sense. But this is my latest example of why people should vote.
My client had 5% down. The seller agreed to a Seller Hold Second. We were on the MLS. They buyer has a credit score above 680. Two years employment, two years rent. I have a VOE and a VOR. I have lease agreements with some of their friends that were going to move in with my buyer. But, my buyer is stated - because they make most of their money in cash. They have cash reserves and I can VOD them virtually anytime. Two year trade line with a credit limit of over 10k. DTI is virtually negligible.
But Ohio hates people.
Some may say or even respond that if you can't go Full Doc you shouldn't have a home. If you can't document every penny, why should anyone loan to you. And this is a valid and complex argument that could go either way at any moment. But for my two cents, I leave you with this; Re-read that list of employment and just guess how many people that is. Now add to that number the fact that Bank of America has decided to create a credit card offering for people that are in our country illegally. They don't pay taxes, they work for cash, and they have built an enormous portion of our county - they are also breaking the law, yet we want them to have a credit card "So they can start to build their credit and buy a part of the American dream".
Except in Ohio.
p.s. There are two sides to every story. And I am sure that eventually, now that numerous lenders have removed their 'Stated' programs from Ohio or don't lend there at all, this bill will be amended or even repealed. Which wouldn't be that good of an idea because some of the bill was great for our industry (the cap on points comes to mind). But the road to hell is paved with good-intentions.
Today's estate introduces us to the Central Florida community of Bella Colina, a luxury enclave with a country club, golf course, equestrian facilities and bike paths all in a lakefront setting. The development has a Tuscan theme and is located 20 minutes from Orlando. This home is Villa Esperanza, one of the most luxurious homes in the community. It has an open floor plan and has six bedrooms. The brand new home has Tuscan-inspired details such as arched entry ways and a barrel-shaped brick-lined ceiling in the dining room. The home has a marble Grand Salon, a study with custom woodworking, and a family room with a revolving bookcase that hides a 50" plasma television. The master bedroom suite has a fireplace, wardrobe rooms and a morning bar. There is not a lot of land but the home does have four garages, a lakefront heated pool and a terrace with a summer kitchen. It is listed at $8.9 million. After the jump, close quarters outside but a world of space indoors.
As always, I am not a Realtor and am not listing the home, I am only reposting this from another blog I enjoy Luxist.com. And, as before, this entry was created by the very talented, very busy and hopefully very well paid, Deidre Woollard.
Homes outside of Atlanta, Georgia often tend toward the traditional even when they are newer builds. This home in Powder Springs is no exception. The eight-bedroom home is a French country-style manor that stays fairly true to the chateau theme (although there is a rec room that isn't exactly a classic). Stained glass, walnut floors, coffered ceilings and built-in bookcases give the home a warm and stately feel. There is a a large main level owner's suite and upper level children's suite.
The property is 34 acres that includes pastures, a riding arena and a 12-stall barn with an apartment. The five-car garage also includes an apartment. It is listed at $10.5 million. After the jump, I don't think I've ever seen a house with quite so many places to sit.
As always, I am not a Realtor and am not listing the home, I am only reposting this from another blog I enjoy Luxist.com. And, as before, this entry was created by the very talented, very busy and hopefully very well paid, Deidre Woollard. And yes, that is a fireplace at the end of the tub. That's cool.
Everyone knows that your credit score is adversly affected by what you owe, what you own, tradelines, credit history and a million other variables. (Insert joke here....)
But this a simple, free way that you can get a few points that may be critical if you're buying a home.
First off, you have to know that the ideal balance for a credit card is between 20-30% of your limit per card. So if you're balance is $1000.00 ideally your debt on that card is between $200.00 and $300.00.
Well let's say that your balance is closer to $500.00, which is 50% - and you're bying a house soon and need a few points improvement but you don't have enough to pay it down.
Try this, tell the credit card company to raise your limit. Tell them it's for any reason, buying furniture, transferring a balance, new tires whatever they need to hear. Keep in mind you're talking to a person on the other end. A person that probably has credit cards too. They don't know you, don't know anything about you except what their computer screen tells them. So don't be afraid! They can't do anything more than say no, politely. :)
And if you insist eventually they will transfer you to their manager and you can tell them the same thing, 'Raise me or I'm leaving', whatever they need to here.
So, they raise you $500.00, which brings you to a $1500.00 limit, with a $500.00 balance.
Now you're down to 30%. And it only cost you a phone call. :)
(In the interest of full disclosure, this may not work for every credit score. It really depends on how the rest of your credit is weighted against this card. If you have 11 cards and you can only get one raised, the benefit will be minimal. If however, it does work for only one, transfer the balances of some of the other ones to lower their balance.)
Remember, it's your score and no one other than you can improve it.
Hidden Meadows is an absolutely elegant home in South Londonderry, Vermont. The deluxe country estate is on 90 acres surrounded by the Green Mountains. The house has a Georgian feel with plenty of windows to catch the light. On the property there is also a two-bedroom guest house, a club house, pool, ponds, tennis court and a beautiful pool pavilion. Other amenities include a fitness center, steam room and a library. It is listed at $8 million. After the jump, so many outdoor living spaces in a climate with so few chances to enjoy them.
As always, I am not a Realtor and am not listing the home, I am only reposting this from another blog I enjoy Luxist.com. And, as before, this entry was created by the very talented, very busy and hopefully very well paid, Deidre Woollard.
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.
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Today's estate introduces us to the Central Florida community of Bella Colina, a luxury enclave with a country club, golf course, equestrian facilities and bike paths all in a lakefront setting. The development has a Tuscan theme and is located 20 minutes from Orlando. This home is Villa Esperanza, one of the most luxurious homes in the community. It has an open floor plan and has six bedrooms. The brand new home has Tuscan-inspired details such as arched entry ways and a barrel-shaped brick-lined ceiling in the dining room. The home has a marble Grand Salon, a study with custom woodworking, and a family room with a revolving bookcase that hides a 50" plasma television. The master bedroom suite has a fireplace, wardrobe rooms and a morning bar. There is not a lot of land but the home does have four garages, a lakefront heated pool and a terrace with a summer kitchen. It is listed at $8.9 million. After the jump, close quarters outside but a world of space indoors.
;)
;)
