Hi, animal lovers! 

This is pretty  simple... Please ask ten friends to each ask a further ten today! 
The Animal Rescue Site is having trouble getting  enough people to click on it daily so they can meet their quota of  getting FREE FOOD donated every day to abused and neglected animals.   

It takes less than a minute (about 15 seconds) to go to their site  and click on the purple box 'fund food for animals for free'. This  doesn't cost you a thing. 

Their corporate  sponsors/advertisers use the number of daily visits to donate food  to abandoned/neglected animals in exchange for advertising. 
Here's the web site! Please pass it along to people you know. 
http://www.theanimalrescuesite.com/ 
  
  
AGAIN, PLEASE TELL 10  FRIENDS!

It is almost Thanksgiving again, and with this Holiday comes the opportunity to reflect on that for which we should be Thankful.  I have always been comforted through tough times by the ideal that things could be worse, and in today's world we don't have to look far to find others less fortunate than ourselves.

 It is really just too easy for all of us to be caught up in the drama of our daily lives to the extent we find ourselves in our own little "pity party."  While there are nearly always things that could be better, certainly many more things could be worse.  I recently read a statement attributed to Robert Kiyosaki, the author of "Rich Dad, Poor Dad."   His philosophy is that he and his family always live well because they are constantly preparing for the worst.  Living by this philosophy forces you to be thankful for everything because you are always preparing to live with less. 

 This brings me to the list of things to be thankful for that I annually send out to the many people who I enjoy working with each year.  Sorry, I can no longer remember where the original text came from because I have "tweaked" it year to year to fit with my life.

I am thankful for...

... The High taxes I pay because it means that I am employed.

... The phone calls that interrupt my work because it means people are thinking of me.

... The dirty dishes piled up in the sink because it means that I have enough to eat.

... Fallen leaves spread across my lawn and filling my gutters, because it means I have a home.

... Piles of dirty laundry everywhere because it means my kids are still with me

... The parking spot I find at the end of the parking lot on a rainy day because it means that I can walk.

... How tired I feel at the end of the day because it means that I have been productive.

... The uncertainty of the market because it gives me the opportunity to learn.

... All the challenges that face me because they build my strength and character.

... AND MOST IMPORTANT OF ALL;

The opportunity to work with each of you because it feels great to be part of something bigger than myself.

From my family to yours...Happy Thanksgiving!

I just received an email from one of my past military borrowers who has a loved one in Iraq.  I thought it was a fabulous idea worth sharing with all the good folks on Active Rain.

 Xerox is sponsoring a Thank You card drive for the men & women of our armed forces stationed overseas this holiday season.  It will only take a minute of your time, and will definitely brighten their day.  All you have to do is visit the Lets Say Thanks web site,  follow the 3 easy steps (give your name, pick a design, and choose a pre worded thank you message, or create your own), and Xerox will print and deliver the card to one of our troops.

 It does not matter what your stance is on our politics, or foreign policy, these people are serving our country, and deserve everyone's support.  From a completely selfish standpoint, this is a great way to get in front of your database in a positive way.  Who knows, you might just get some business out of being a nice person.

It is Friday the 13^th, and once again FDIC Friday is our headline.  Today the FDIC shut down 3 more banks; one in California, and two in Florida.  This brings the 2009 YTD total to 122.  Here is a look at the month by month totals.  Actually, I was afraid things would be much worse, but that is probably just a reflection of my own superstitious viewpoint, and irrational fear of Friday the 13th.

I guess there is some good news in the fact that these numbers are still nowhere near the totals we saw in the great S & L crisis of the 1980's, but it still makes you wonder just where the money went.  Here is a link to the official FDIC failed bank list for anyone curious about his or her own neighborhood.

The big news of the day in Real Estate surrounds the potential failure of FHA.  I have seen a few blogs that are trying to put a positive spin on the situation, saying that FHA is fine, and these reports are being blown out of proportion.  I remember hearing almost identical statements with regard to Fannie, & Freddie 14 months ago; or in other words, just before we had to bail them out with public money.

I went to a link on a blog for a video created at Think Big Work Small where they made the case that FHA actually has plenty of money, and they were not going to be in need of any bailout.  Here is a link to their work TBSW Video . After watching the video I think they make a few incorrect assumptions.  The reserve account is for potential losses, and is at 0.53%, which IS Well Below the mandated minimum of 2% (and by the way, 2% reserves means you are leveraged at 50 to 1, which would potentially trigger the FDIC to shut you down if you were a bank).  Here is a link for any of you who would like to read the actual HUD Report. The TBWS guys on the video seem to be relying on the idea that the projected losses are not accurate because they are based on 2007 & 2008 results.  They say that those were anomaly type of years, and we will never see a repeat of them, and we did not go through the predicted Armageddon many thought those years portrayed.

I have news for you.  As bad as 2007 & 2008 were, we did not have OFFICIAL Unemployment above 10%!  The problem with FHA is that the buyer has an LTV of 96.5% (loan balance is actually higher due to Up Front Mortgage Insurance Premium rolled in), and if 10% of those borrowers lose their job the default rate will be FAR HIGHER than it was in 2008.  One of the positive statements in the HUD Report is that the average FHA borrower FICO is now in the 690's versus the 630's in '07 & '08.  I hate to say it, but even if your credit score is 800, you're going to have a tough time paying your mortgage for long if you don't have a job.

That is why there is such a concern. Currently, over 8% of all FHA loans are over 30 days late (that's 1 in 12, look around your block), and unemployment is not predicted to get well soon.  The stimulus is slow to create the promised jobs, and the unemployment number is as artificially low as mortgage rates.  Just as the Fed has artificially held down loan rates, people going over the limit of unemployment "fall off" the books.  That is why true unemployment and underemployment rates are reported as closer to 20%.  If FHA does not increase their reserves, they will need a bailout sooner than later. 

Today the Senate finally passed H.R. 3548, the bill extending unemployment benefits, and with it comes an Amendment extending the Tax Credit for First Time Home Buyers as well as an exception allowing for move up buyers to get their own credit.

In its current form the bill extends the $8,000 Tax Credit for First Time buyers as long as they are under contract before May 1, 2010, and close on the home before July 1, 2010.

The exception for move up buyers reads "In the case of an individual (and if married, such individual's spouse) who has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8 year periodending on the date of the purchse of a subsequent principal residence, such individual shall be treated as a first-time homebuyer..."

The bill goes on to state that in that circumstance, that individual shall receive a $6,500 tax credit rather than the $8,000 for a true first time buyer.

The final vote by the Senate was 98 to 0 in favor, and the House is expected to make this bill a priority, possibly leading to a vote next week.  Let's hope this gets done quickly so we can all stop playing the "rumor game" when it comes to the extension of this credit.

Today the Federal Government is reporting some of the results achieved from the $787 Billion Stimulus package with regard to employment.  Depending on the source you choose to listen to, anywhere from one quarter to one-half of the $787 Billion has been distributed. 

In Puyallup, using my office zip code of 98372, there has been one contract reported with a value of $192,000, and it has resulted in in 0.5 (yes, that is one half) jobs created.  I'm not sure how you calculate half of a job, maybe it is a 20 hour per week job?  For the greater Puyallup area (zip codes 98371, 98372, 98373, 98274, & 98375) there have been two contracts awarded at a total cost of $574,825, and the published result of jobs created equals 1 (both contracts apparently created/saved one half of one job).  Forgive me for feeling underwhelmed that our government spent over half a million dollars to save, or create one job.

Today the Federal Government is reporting some of the results achieved from the $787 Billion Stimulus package with regard to employment.  Depending on the source you choose to listen to, anywhere from one quarter to one-half of the $787 Billion has been distributed. 

In Puyallup, using my office zip code of 98372, there has been one contract reported with a value of $192,000, and it has resulted in in 0.5 (yes, that is one half) jobs created.  I'm not sure how you calculate half of a job, maybe it is a 20 hour per week job?  For the greater Puyallup area (zip codes 98371, 98372, 98373, 98274, & 98375) there have been two contracts awarded at a total cost of $574,825, and the published result of jobs created equals 1 (both contracts apparently created/saved one half of one job).  Forgive me for feeling underwhelmed that our government spent over half a million dollars to save, or create one job.

Interestingly, I found a project listed with a cost of $999,310 that is attributed to Milton, WA just north of us by a couple of miles.  The Recipient Company is the Boart Longyear Company, and their subsidiary Holt Drilling.  While these funds did not save or create any jobs, at least the money was filtered through our area? 

For Washington State as a whole, the claim is 2,909 jobs were created, or saved at a cost of $228,820,000 received so far.  that averages out to $78,659 per job.  From the various news articles I have read so far, the national average cost of each job created or saved so far varies from $250,000 to as much as $600,000.  Washington State appears to be on the bargain end of the spectrum at $78,659 when compared to South Carolina, which has received $219,560,000 in order to create/save 146 jobs (roughly $1.5 Million per job).

All in all, I am very impressed with the transparency of the spending.  I have never before been able to find out what my government does with our money at nearly the same speed as they spend it!

To see how the money is being spent in your area visit Recovery.gov

Is there an Extension of the FTHB Tax Credit?

Sorry, but as of Thursday the 29th, the short answer to this is No. 

The flurry of news came from an unofficial  statement made by an aid to Senator Harry Reid coupled with a public statement made by Senator Chris Dodd who told reporters on Tuesday that he had a "Done Deal."  Unfortunately, this is the way Washington DC works, and the media ran with the story before confirming the facts.

The Facts as of October 29th

Senators Reid, and Baucus are trying to add an amendment to a bill extending unemployment benefits that would extend the current Tax Credit until the end of next year.  However, this would not open the credit to existing homeowners, or change the amount of the credit.  Also, the credit would be phased out completely over that time period.  The Current $8,000 would be trimmed to $6,000 at the start of the 2nd quarter of 2010, then $4,000 for the 3rd quarter, and $2,000 for the last quarter. 

The Good News is that there is widespread support for the extension, but the reality is we are still waiting for both Houses of Congress to vote on anything, and the White House is now expressing concern over costs of extending the Credit.

As we draw closer to the November 30th Deadline for taking advantage of the $8,000 First Time Home Buyer Tax Credit, the chatter about extending it is reaching a fever pitch.  While this topic of conversation is very popular, I believe the extension will not be coming anytime soon for 3 reason: Urgency, Credibility, and Politics.

The first issue I bring up is urgency.  One of the first rules of Marketing for the purpose of increasing sales is to create a sense of urgency.  Any incentive to purchase that never expires is really not an incentive at all, but rather a normal feature of that business.  Limited availability of a significant savings or reward is intended to spur people into action, and that is what the Tax Credit was designed to do.  The "Cash for Clunkers"program is a prime example of this response to limited availability.

This brings me to my second point - Credibility.  Remember the original First Time Home Buyer Tax Credit that was part of the initial Stimulus Bill?  That is the one where the credit was for $7,500, and took the form of a no interest loan repaid through taxes over a 15 year period.  Buyers that purchased under that program are not exactly thrilled that they have to repay their tax credit when those who waited are getting more money, and don't have to make any repayment.  The last thing we need is for potential buyers to start holding out for a better deal in the "next stimulus."

Finally, there is the political angle to all of this.  Politicians are some of the best sales people on the planet, and they are in a position to maximize their returns.  Right now, they can point to this program, and take credit for the positive results in the housing market's increased sales year over year.  That is also the reason they chose an expiration date of November 30th rather than the end of the calendar year.  What typically happens to home salesat this point of the year?  They decline of course, which is why we have "seasonally adjusted" housing statistics.  Our elected Representatives will get to go home on their holiday break, and "listen to their constituents" who will point out that sales are down (as they are every year at this time).  Then they will be able to return to Washington DC, playing the role of Hero by either extending the Tax Credit, or creating another all new one in order to "jump start" housing again as we head into Spring.

In the end, the tax credit has been an effective tool in helping to boost home sales, but the housing market is far from cured.  The result is that we do need some ongoing help(especially in the" move up" market), but hopefully we do not become viewed in the same light as the local retailer that has had a "going out of business - everything must go now" sign in the window for the last 3 years.