Charles' Thoughts

Beautiful New Homes in Rancho Cucamonga

Wed, 02 Apr 2008 19:45:27 -0500

Welcome to Bridlewood Estates Located In Northern Rancho Cucamonga. This Stunning Home Features 5 Bedrooms, 4 Bathrooms, 4 Space Tandem Garage and 4,587 Square Feet of Living Space. Additional Features Include a Library, Loft, Master Retreat & Courtyard.

This is the first view of the Formal Dining Room. As you can see it has a wonderful stone backsplash, hardwood floors and exquisite hanging mini-chandaliers.

Here is the second view of the Formal Dining Room. It has Two Double French Doorways leading to the front patio.

This Elegant Kitchen features Commercial Grade Appliances Including Dual Ovens, Granite Countertops with Custom Granite Backsplash, Wine Chiller, and 48" Refridgerator and much more. The Breakfast Bar Contains The Diswasher and Dual Stainless Steel Sink.

Just off the Kitchen is a Cozy Breakfast Nook featuring Custom Tile Flooring, Built-In Cabinets and a Dual Entry French Doors Leading To The Spacious Courtyard.

Just off the Living Room is a Spacious Library that is Perfect For Reading by a Cozy, Stone Accented Fireplace on those Rainy Nights.

The Upstairs Loft Features A Wonderful Place To Visit with Friends or Convert into a Gameroom. Available Options Include A Small Media Center with Cabinets.

The Master Bedroom with Built-In Cabinets, Raised Ceiling and Master Retreat (Not Pictured)with Media Cabinet.

This Master Bathroom Features Dual Vanities with Granite Countertops, Seperate Shower and Jacuzzi Style Tub, and Oversized Walk-In Closet with Built-In Electronic Wall Safe, Upgraded Tile Flooring and Custom Lighting.

Prices Range from $849,000 to $1,100,000, depending on upgrades.

Other Amenities Include:

Lot Sizes Up To 18,200 Square Feet
Miles of Equestrian Trails & Walking Trails
R.V. & Boat Parking (Not Available on All Models)
Magnificent View of the Foothills
No Homeowners Association
Low Property Tax Rates
And Many More

There Are Only a Few Models Left To Choose From, However Starting Today, If You Purchase in the month of April, You Will Receive a $50,000 Credit to use for Closing Costs, Upgrades, Price Reduction, Interest Rate Buydown or Any Combination.

Join Charles & Kathryn Tharp for the Model Home Launch Saturday, April 5th at 10:00 AM. Registration is Required to attend. If you would like to register to view these models or would like more information, please contact Charles or Kathryn Tharp at 626-374-1278.

So...How Old is Your Photo?

Thu, 27 Mar 2008 21:28:03 -0500

I have seen a lot of members here on the rain updating their photos lately. I was thinking about it and wondering how old are the photos here of all of our members? How often should you update your photo?

I know many of us use the same photos for our business cards, flyers, postcards, etc. but how often do we think of updating them? Now I will be the first to admit that I probably have the oldest photo here on the Rain. The one I am currently using is almost 9 years old. In fact I had it taken in May of 1999, right before my High School Graduation (and please don't remind me that I have a reunion coming up).

Well with my partners advice, well not so much advice as it was more of a dragging me to the photo studio situation, we decided to get new photos. We decided to do both a casual and business shot. All in all there were about 50 photos taken. Now, I hate ~~taking~~ being in photographs, however I knew I needed to get some new ones, not that much has changed, but the hairline has been receeding for years now (Thanks Mom!).

I was not impressed with the photos that were taken. She got so close to my face that it made me look like I hadn't shaved in days and I had zits all over my face, hence the photos below. Out of the 50 some odd shots, we only liked one of each (hers and mine). Sure there are some goofy shots(see below) but all in all I think she was somewhat inexperienced in the use of a camera.

Anyways, I personally believe that we should update our photos every 3 years or so. We forget that we change hairstyles (yes, going balder counts), change our glasses, gain or lose weight, etc. and need to let people know that. In fact, we have an agent out here (not on the rain) who uses a photo for her advertising. It is over 20 years old! You know when a potential client meets her they are going to notice and ask those questions about age. In fact, I think if we don't keep our photos updated, we may have some initial trust issues with potential clients. So everyone who has a photo that is over 3 years old, get out there and get some new ones taken!

Why Realtors Are Worth Their Weight In Gold...And Their Commission

Fri, 21 Mar 2008 20:48:24 -0500

I have been hearing a lot of talk lately about Realtors/Agents and some who think we are becoming obsolete. Kim Carpenter's blog Will I cut my commission? No!.... Next question., about agents and their commissions was excellent and inspired me to post this.

The public's perception is that we are just a bunch of greedy, overpaid agents who don't give a damn about what our clients concerns are or what is in their best interest. We simply just want to get them into a house and get our checks without actually stopping to consider what might be best for you, the client.

So I hereby dedicate this post to all of you. This post is about what a true Realtor/Real Estate Agents job actually entails. In fact, as you will see, there are 7 jobs that we do, not just 1.

Financial Adviser - When we first meet with a potential client, the first thing we have to do is determine whether we think you are qualified to purchase a home. Sometimes this is as easy as asking what your income is, if you have a down payment and closing costs, how your credit rating is, etc. However, with first time homebuyers, this means that sometimes we as agents have to sit down with our clients and work out a budget or a savings plan, teach them how to handle the stress and enjoyment of owning a home, including all of the wonderful tax benefits that come with it.

We also have to walk them through each step of the loan process. Everything from finding a great loan officer, applying for a mortgage, submitting the paperwork, waiting on the lenders approval, ordering the appraisal, meeting the lenders requirements, signing loan documents and funding. We work hand in hand with your loan officer to make sure everything is taken care of.

Counselor - This comes in when working with either first-time buyers or sellers, or those who just worry about every little detail when it comes to buying or selling a home. We have to find out exactly what your concerns are, what your goals are and the timeline you want to accomplish them in and then find a way to make it all work. We have to be there to answer questions, squash any concerns you may have and sometimes to calm you down at 3:00 in the morning from what you sometimes may think is the worst mistake of your life (I have had to do this before).

Now, I'm not saying that we mind doing this, because in fact we enjoy it. We know after everything is said and done we will hopefully hear those two words that make it all worthwhile: "Thank You". Those two words mean the world to us. It tells us that we did our job and did it well. It fills us with a sense of pride and accomplishment but most of all, we made you happy.

Negotiator - We as agents have to represent you in the best way possible, and that means that when the chips fall, we have to have a strong backbone to come in to the negotiating table and do our best to get you what you need and want. We also have to learn to compromise at the same time, which can be difficult at times. We not only have to negotiate with the other agent but we also have to negotiate with you. As you can imagine this requires us to be strong yet flexible as well. Think of it as walking a tightrope with no safety net about 100 feet in the air. If we fail to reach an agreement, then we have fallen off the tightrope and are heading for a nice block a cold-hard concrete.

Some of us have read several books on the art of negotiating. Some even go to expert classes to learn some new ideas, all of which can be very helpful to you. The point is, we have spent a lot of time and money into honing our skills for your benefit.

Transaction Coordinator - This is probably the hardest job of them all. We have to communicate with a lot of people everyday to make sure everything is progressing as it should. We have to communicate with the other agent, escrow officer, loan officer, title officer, appraiser, home inspector, termite inspector, and most importantly, YOU. We are also responsible for making sure every form is completely filled out, signed and turned in ontime. Sometimes this can add up to an entire day just making phone calls and faxing everything over to the respected parties.

Truthfully, this job is really paper-pushing. We have to make copies, fax things over, make phone calls and sometimes mail things overnight to make sure that we all close ontime for your benefit. We also have to solve problems along the way, either with escrow or the lender and some of which you may never know about simply because we don't want to put you under anymore stress.

Chauffeur - When showing a buyer homes, the average realtor will take you out three times, each time showing you an average of 4 homes a time. That is twelve to fifteen homes that you will see before writing an offer. Please, don't get me wrong, we love taking people out to see homes. But sometimes we never get to write an offer for you or you decide not to buy. With gas prices over $3.25 per gallon and rising, the cost of oil changes, tires and general maintenance on a car, this can definately hurt us over a long period of time.

Estimator - If you decide that you want to put in an offer on a home, we first have to determine what we think is fair market value. To determine this we have to look at how many homes are on the market, how long they have been on the market, conditions of other homes in the area, recent sales, backup and pending offers, etc. This can take us anywhere from 15 minutes to several hours, depending on the area and the data. For sellers, we have to factor everything above and also marketing costs.

This can sometimes be the easiest job or the hardest, it really just depends on the area.

Marketing Director - In this market, we can no longer stick a sign in your yard and put it on the MLS to get your home sold. We have to do a lot of marketing. Each agent does it a little differently, whether it is running an ad in the local paper, putting it on a public TV station like PBS, or placing it in a Homes for Sale book. We also have to design postcards, listing flyers, mailers, etc. in order to try and get your home sold. This money comes out of our own pockets since we don't get paid until after your home sells and closes escrow. This can costs us anywhere from a few hundred dollars to several thousand.

For buyers, we also have to come up with several ways to get you to call us. This means we have to brainstorm and try different ideas until one works. This can also costs thousands of dollars without working for us.

So as you can see the job of a Realtor is a hard one. We have to take on many different roles and wear different hats in order to do our job, all while walking a proverbial tightrope. I will grant you that their are some agents out there who don't care except about their paycheck, however that doesn't mean we are all that way. Most of us love our careers and love to help people like you acheive their goals. So please, the next time you think we are in it for the money, come back and read this post and see what we really have to do in order to fulfill your dreams and goals.

Oh, and for those of you who think we all make hundreds of thousands per year: According to salary.com the average real estate agent made just under $50,000 last year.

P.S. "Remember that if you are working with an agent in this market, you are working with someone who truly cares about you and their job" - Author Unknown

A Love Story

Fri, 21 Mar 2008 02:57:08 -0500

I shall seek and find you.

I shall take you to bed and control you.

I will make you ache, shake and sweat until you grunt and groan.

I will make you beg for mercy.

I will exhaust you to the point that you will be relieved when I leave you.

And you will be weak for days, possibly even weeks.

All my love,

Influenza (The Flu)

Fed Announces First "Official" Bank Bailout

Fri, 14 Mar 2008 15:48:52 -0500

Most of us knew this sad day would come. The feds announced earlier today that it is going to bailout Bear Sterns with the assistance of JP Morgan Chase (Chase Manhattan).

Bear Sterns announced today that it has secured financing through the Federal Reserve Bank of New York with the assistance of Chase Manhattan, which is being used to funnel the cash to Bear Sterns. Chase Manhattan will not be responsible in case of default by Bear Sterns. According to Bear Sterns' CEO Alan Schwartz "our liquidity position in the last 24 hours has significantly deteriorated. We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations."

The news came with a high price tag for Bear Sterns. After the news, shares of Bear Sterns were down over 40% and finished at a loss of just over 47%. This has definately added a new outlook to investors about the health of the economy and especially the financial sector, especially since Bear Sterns was the second largest investor of mortgages last year.

Worries at the Fed:

The feds are still concerned about the uncertanty of the financial markets and have pledged to continue to provide liquidity as necessary to stablize the financial system. Also, more and more analysts agree that the feds are going to be dropping the interest rates again when it meets next week. The current fed funds rate is at 3%, however most analysts and experts are expecting a drop between 75 and 150 basis points to bring the fed funds rate down between 1.5% and 2.25%.

The Unseen Victims of Foreclosure: The Owners

Fri, 14 Mar 2008 03:58:05 -0500

I know we have all seen the headlines and statistics regarding the foreclosure fallout. Foreclosures have been rising steadily over the last year or so, short sale and REO inventories are at their highest point in over a decade, but what we all fail to see and remember is that those just aren't statistics, these are people who are losing their homes. Not everyone is trying to just unload their homes as a bad investment. Some of these owners have lost their jobs, been in car accidents, or worse.

I have a client, "Berta" who bought a home back in 2004 and had to re-finance it in 2006. Shortly after the re-finance her husband was killed walking home from a job interview not five blocks from his home. He was killed by a 17 year old driver. He left behind his wife of 19+ years, 3 children and 2 grandchildren. Somehow she was lucky enough to pickup a second job and was able to keep her home and still raise her children.

But unlike "Berta", some are not as fortunate. There is a place not far from where I live in Ontario (California, not Canada) that is called Tent City. These are the people who have lost their homes or have become homeless for various reasons and had nowhere to go. They tried asking for help from their city, state and federal government agencies to no avail. There is not enough government housing available. Section 8 housing, which is completely government paid housing, has about a 5 YEAR waiting list.

They sleep outside in sleeping bags or in tents if they are lucky enough to have them. Some are lucky enough to have a job and contribute to the well being of their family, with some going as far as providing food for other families as well. Everyone in Tent City tries to help each other as much as possible.

Luckily, the City of Ontario has welcomed them with open arms, providing them the space (about 3 to 4 city blocks) and also went as far as providing water and bathrooms for the residents. Police don't harass them. In just a few short months "Tent City" has grown from a few dozen to over 400 people and the city is starting to worry about the health and safety of these residents.

So my question is this: Why is it that we as a country can afford to bail out the banks and investment firms, who still have billion of dollars, but can't find any funding to help these people and the thousands more who have lost it all, get back on their feet? Why can't we stop spending money on useless projects both inside and outside of this country and invest it into our own people? Wy can't politicians understand this basic concept? In fact, I would love to debate them on this issue.

Remember, these are not bad people, they are simply people who have had bad luck recently. I don't think it is too much to ask to help them get back on their feet, help them find a place to live, find a job and become successful again. I don't believe in kicking people when they are down. We need to take a pro-active response, not a reactive response. Therfore, I am dedicating Saturday, March 22nd, as "Pick'em Up Day".

I am going to go through my closets and gather up all of my clothes I don't wear anymore and donate them to these people. I am also going to start my own fund from now on and donate 10% of my commission checks to the City of Ontario, to help get these people back on their feet. I will also volunteer my help in anyway that I can. Maybe if I step-up to the challenge, others will join me, including the politicians. If we put enough pressure on them, maybe we can get something done that is useful, rather than shoving billion of dollars into the abyss.

Some Funny Videos For Your Amusement!

Wed, 12 Mar 2008 14:10:53 -0500

I know as agents, loan officers, etc that we all need a break from time to time so I thought I would throw together some funny videos for all to see. A laugh a day keeps a heart attack away! #1. Politically Incorrect Sign
Politically Incorrect Sign #2 Bad Landing?
German Plane Avoids Disastrous Landing #3 Ring of Fire
Ring Of Fire #4 How Not To Tow A Car
Bad Towing Job Well I hope you enjoyed these!

Banks Get $200 Billion...Tell Me That Isn't A Buyout!

Wed, 12 Mar 2008 12:41:54 -0500

Yesterday, the feds in their infinite wisdom decided to pump an additional $200 Billion into the financial markets to help ease the credit and mortgage crisis even further. As soon as the news hit the markets, the Dow Jones Industrial started to climb and climb, eventually gaining over 400 points, the biggest one-day jump since 2002. Also shares of both JP Morgan Chase and Citigroup (Chase Manhattan & Citibank) were up over 6% and 9% respectively. American homebuilder Centex was also up 11.5%.

Now, while I applaud the feds desire to increase the funds available to the banks to ease this credit crunch, it also sounds like the feds are going to be bailing out the big banks. They are not only pumping the money in, they are also considering purchasing some mortgage backed securities from Fannie Mae and Freddie Mac, as well as looking into purchasing them from investment companies such as Morgan Stanley, Merrill Lynch and others as well.

There has been a lot of speculation on Wall Street as to how much capital is needed to keep the credit markets flowing with the mortgage crisis still in existence. Most experts agree that the amount needed is between $250 Billion to $500 Billion. My personal belief is somewhere between $350 and $400 Billion.

Think about that for a minute. $500 Billion. That is the net worth equivalent of 9 Warren Buffett's or 12 Bill Gates', just to ease and possibly eliminate the mortgage credit crisis. It is also higher than some third world country's Gross Domestic Output in a year. It is also the rough equivalent of 1/8^th of the United States budget for this year. It is also about the amount of money we have spent on the Iraq war so far.

So with the feds now putting another $200 Billion into the pot and considering purchasing these securities, please tell me how we aren't bailing out the banks when it looks like we are doing just that. It sounds like no matter what we are going to just print out enough money to make sure the credit crisis just goes away and to hell with the value of the dollar.

Am I wrong? Are we not bailing out the banks? Are we not printing money to bail everyone out, including ourselves?

Sure...The Banks Aren't Being Bailed Out.

Tue, 11 Mar 2008 15:16:06 -0500

It may not be official, but the banks are being bailed out. Let me prove it.

The federal funds rate is the rate that banks can charge each other for overnight or short term loans. They can also borrow money from the government at this rate, which is currently at 3%. The feds raise this money by selling government backed bonds, which at this moment are being sold every two weeks at a whopping $20 billion bi-weekly. The feds have just increased that this month to $60 billion bi-weekly because of the extraordinary demand for them.

Here is where the problems come in. The feds have short term loans at 3%, however the terms can be extended and usually are, in fact quite frequently. All the banks have to do is re-finance the loans, in which the banks pay no fee to do so; however they do have to take the current fed funds rate at the time they are refinanced.

So technically, the banks could borrow billions at 3% right now and use it to lend out, keep their reserves up, swim in the vault like Uncle Scrooge from Ducktales did, etc.

Here is how the banks are being bailed out. Technically, the feds assume (you know what they say about the word "assume") that when the bank borrows the money, they are going to use it to lend out to consumers for auto loans, business loans, mortgages, credit cards, boat & R.V. loans, personal loans, etc. Here is the problem. Banks are borrowing billions and not lending it all out. They are using it to bail themselves out and I can prove it.

First, six to nine months ago it was still somewhat easy to get 100% financing, either for full doc loans or stated income loans. The banks wanted a better credit score (640 FICO) and some wanted more assets, however it was still doable. This was also when small and medium banks were just beginning to start taking write offs for bad mortgages. The big ones were still reporting a profit, especially Citibank.

Fast forward to today. Now big banks are writing off hundreds of billions of dollars in bad mortgages, putting more restrictions on every type of loan, refusing to do certain types of loans, including Chase Manhattan who just got rid of their expanded approval loans (Fannie Mae) and A- loans (Freddie Mac). A few weeks ago, Chase also eliminated all of their stated income products. They are requiring bigger down payments, more reserve assets, better FICO scores, lower debt ratios, etc.

So the banks are keeping the money that they borrow and have greatly reduced their loan output for mortgages at the same time. I seriously doubt that they are using that money to fund more auto loans or boat loans. I think they are sitting on it until they get back on track.

If you don't believe me, walk in to your nearest big bank (BofA, Chase, Wamu, Wells Fargo, etc) and ask them for a 100% purchase money mortgage. I will bet that all of them will tell you they no longer offer that program and will require at least a 3% or 5% down payment to approve you for a loan, besides the excellent credit and everything else. If they do have that program, I guarantee that you will never be able to meet all of the conditions of the loan. They will probably have the underwriters review the file five or six times to ask for things that are impossible.

And The Best Time To Get A Jumbo Loan Is.....NOW

Fri, 07 Mar 2008 23:03:34 -0600

Ok, I wrote this post as an update on my previous post "The best time to get a jumbo loan is....not now".

Well as of today that post is null and void. Lenders are now accepting new loans with the increased conforming loan limits. These limits vary by county, however in high cost areas they are up to $729,750, which completely trumps the old limit of $417,000! Fannie Mae & Freddie Mac now have permission to purchase these loans from the bank up until December 18th, 2008.

Below is an example of the estimated savings of the old jumbo loan to the new conforming loan.


Loan Amount	$ 600,000.00	$ 600,000.00
Interest Rate	5.75%	7.125%
Monthly Payment	$ 3,501.44	$ 4,042.31
Monthly Savings	$ 540.87
1 Year Savings	$ 6,490.44
5 Year Savings	$ 32,452.20
10 Year Savings	$ 64,904.40
20 Year Savings	$ 129,808.80
30 Year Savings	$ 194,713.20

The above chart is based on a refinance or purchase. You must provide full documentation, have a loan-to-value ratio of 80% or less, owner occupied, single family residence, no impounds, and a FICO score of 720 or above to qualify. Sorry, but we have to disclose the legalese bla bla bla stuff. This isn't a commitment to lend, bla bla bla.

So go out there and purchase or re-finance. It will probably be the only time that jumbo's loans are at conforming prices!

What Our Jobs Really Entail: The Working Jobs of Realtors

Sat, 01 Mar 2008 20:10:57 -0600

I have been hearing a lot of talk lately about Realtors/Agents and some who think we are becoming obsolete. The public's perception is that we are just a bunch of greedy, overpaid agents who don't give a damn about what our clients concerns are or what is in their best interest. We simply just want to get them into a house and get our checks without actually stopping to consider what might be best for you, the client.

So I hereby dedicate this post to all of you. This post is about what a true Realtor/Real Estate Agents job actually entails. In fact, as you will see, there are 7 jobs that we do, not just 1.

Chauffeur - When showing a buyer homes, the average realtor will take you out three times, each time showing you an average of 4 homes a time. That is twelve to fifteen homes that you will see before writing an offer. Please, don't get me wrong, we love taking people out to see homes. But sometimes we never get to write an offer for you or you decide not to buy. With gas prices over $3 per gallon and rising, the cost of oil changes, tires and general maintenance on a car, this can definately hurt us over a long period of time.

This can sometimes be the easiest job or the hardest, it really just depends on the area.

Oh, and for those of you who think we all make hundreds of thousands per year: According to salary.com the average real estate agent made just under $50,000 last year.

P.S. "Remember that if you are working with an agent in this market, you are working with someone who truly cares about you and their job" - Author Unknown

Warning! Nigerian Scam is Hitting ActiveRain!

Fri, 29 Feb 2008 22:24:58 -0600

I received an e-mail from ActiveRain from what I thought was a potential client. When I opened it up, it was the typical e-mail of the Nigerian scam. I can't believe that we are actually getting these through the Rain. Now for those of you who are unfamiliar with this type of scam, I will fill you in.

First you get an e-mail stating that either a long lost relative has passed away, probably one you have never heard of or knew about, and left a substancial cash settlement (usually anywhere from a few million to as high as 70 million) to you. They are willing to help you claim the money for a percentage, usually between 30% and 70%. All they need you to do is send them your telephone number and fax number so they can send you the forms to fill out.

Here is the e-mail that I received. I did not edit anything out.

____________________________________________________________________________________________________________

Name:	MR.YETUMU.
Email Address:	mrbyetumutogo@gmail.com
Subject:	Reply Urgent Please.
IP:	41.207.162.2
Message:	DIRECTOR,AUDIT AND ACCOUNTING UNIT. FOREIGN REMITTANCE DEPT. ECO-BANK LOME-TOGO. Dear Charles Tharp, I am MR.YETUMU BIKO DEDEMJESUS, Director and Chief of Accountant for the Bills and Credits in the Foreign Remittance Department section of ECO-BANK.Lome-Togo in West Africa. I got your contact through an international web directory,Your profile made me to contact you because I was searching for a reliable and trustwordthy person who can not betray me, because I have been praying to my God to direct me to the rightful person to entrust this fund to. There was one of our client Mr.John BRIANT, A United States Citizen Who died on 29 January 2002 in a plane crash which also claimed the life of his only child, Who untill death was the next of kin to the fathers money in our bank ECO-BANK. I am the only director that knows his bank's information, because he use to be my good friend when he was alive,He left about (US$5.5Million)in his account. At this juncture I want to transfer this US$5.5Million into the account you wish to nominate. I will do the paper work here claiming that you are the next of kin to this client, and that you want to transfer the sum into your account abroad. The service of an Attorney will be needed to seal everything and to change the data and information in his file so as to enable us transfer it swiftly. If we employ the service of a highly Accredited Lawyer that means it will take us only 8-10 working days to transfer this money into your nominated account. He will arrange for the affidavit of support from Ministry of Justice claiming that you are the right beneficiary of this fund. I will give you 30% of the total sum of the US$5.5Million for assisting me 5% expencess that will come out in this transation 5% will be donate to the charity. The transaction is 100% free risk. Yours Faithfully, MR.YETUMU. Tel:002289063512. Email:mrbyetumutogo@gmail.com N.B: PLEASE FORWARD TO ME YOUR PRIVATE TELEPHONE ANDFAX NUMBER INCASE I NEEDURGENT CONVERSATION WITH YOU.

Now here is how the scam actually works. After you get this e-mail, you are probably thinking you are the next millionaire. You immediately e-mail the person back asking what you need to do to get the ball rolling. He sends you an e-mail back, usually in 2 or 3 days (this makes them seem extremely busy with other things, which is usually milking other suckers) saying that they need to fax you some documents for you to sign. In these documents they ask you for your name, address, phone number, social security number and the other usual stuff.

Most people actually send this information to them, thinking they are going to get millions of dollars. Now once they receive this information, they will inform you that in order to send the money to you, the I.R.S. (either this country or theirs) needs a portion of the taxes paid before the transfer. They will want you to pay this, which ranges anywhere from a few thousand to tens of thousands of dollars. They will also at the same time ask you for your bank account number and routing information so after the taxes are paid, they will send the money to you.

That is where you lose everything you have. You pay the "taxes", which really go to them, and they also empty out your bank accounts as well. By the time you figure everything out, they have already run off with the money and the government can't do anything about it, and neither can your bank.

Now, for those of you who get an e-mail like that and actually read it, you can find several mistakes (besides spelling) that should trigger your alarm bell inside your head.

First, how can someone think you are trustworthy without ever talking to you? Ennie Minnie Miney Moe isn't exactly the best way to see if you are trustworthy.

Second, if "he use to be my good friend when he was alive" why didn't he just leave him the money in case something happened to both him and his son?

Third, "The service of an Attorney will be needed to seal everything and to change the data and information in his file so as to enable us transfer it swiftly". What attorney is simply going to certify that you are this persons next of kin without proof? What bank would just sign off on this and say "Sure, we have a piece of paper with no direct proof. Send the transfer!"

These are the three easiest things that would blow that alarm in your head right to hell. So please, if you get an e-mail that looks like this, either in your personal e-mail or here on the Rain, delete it and don't think about it again, at least until the next one.

Beware the Real Estate Scam Artists....Real Life Real Estate Scams Part 1

Sun, 24 Feb 2008 13:58:55 -0600

I have been doing a lot of research lately on Real Estate scams that have been going on now for years. I am amazed that with the power of the internet, news bulletins and general information that thousands of homeowners keep falling for these scams. I felt really bad reading the endless amounts of horror stories about people losing their homes to con artists. These people were grasping at straws to try and save their homes and ended up losing them because of these con artists.

So, after doing hours of reading and research, reading horror story after horror story, I decided to try and get the word out to everyone including our number one concern as real estate agents: you the consumer; our clients.

Real Estate Scam #1: Signing Your Home Away

The most common form of scam right now is targeting the homeowners who are behind on their mortgage payments and have had a Notice of Default filed against them. Typically the scam starts like this:

You are behind on your payments, possibly facing foreclosure within the next few months when someone knocks on your door. You answer to find someone explaining that they are a real estate investor, real estate agent, foreclosure guru, etc. They seem to be very sincere about wanting to help and would like to come in and talk to you about your situation.

Once they come in and sit down with you, they will start talking to you very sympathetically about your situation, and eventually will offer to help, whether it is negotiating with the banks, helping you to sell your home, etc. They usually pull out a lot of "forms", ranging anywhere from 50 to 100 (or more) pages, which makes you feel overwhelmed, that they need you to sign. They usually say that these are all of the necessary forms to allow them to talk with the lenders on your behalf to try and negotiate so you can keep your home. Some of them may charge you an upfront fee for this "service", usually no more than $495.

While you are signing these "forms", there is one in there that you may not notice or not know exactly what it is for. It is called a Quit-Claim Deed (California). They typically explain this form as pulling a title report from the county assessor's office or checking to see what liens are on your home, etc. By signing this form a congratulations are in order! You just signed away all of your ownership rights to your home!

As soon as you sign a Quit-Claim deed, the con artist will usually drive straight down to the county recorders office, record the deed and is now the legal owner of your home. The next day they start the eviction process to get you out of your home, usually in less than 30 days, sometimes in as little as two weeks. But wait, that isn't the worst part. While in the process of evicting you, they put the house up for sale, usually way below the actual market value, to get it sold fast. Sometimes they even have "investors" who will buy these homes right from them within a few days.

So within a matter of a week or two, you have lost your home, been evicted from it, and had it sold from under your feet, with little or no warning. The worst part is that it is almost impossible to stop once the process gets started.

How to Protect Yourself

First, anyone who comes knocking at your door claiming to have solutions to your problems should be the first clue that something isn't right. Now granted there are agents and loan officers who are out there who do want to help, so you will have to determine if you want to talk with them.

Second, if they pull out a lot of forms for you to sign, ask for a few days to review them. If they refuse, and some will, politely tell them to get the hell out of your home. If they agree then review all of the forms. Write down any questions you may have about any of the forms and go over them with them. If you see a Quit-Claim Deed, tear everything up and throw it in the trash. There is no way of telling what else they are trying to do.

Unless you are listing your house (which is where all of the forms come in), the only form they need you to sign is an "Authorization to Inquire" form. It will need to have your lenders information including loan number and contact information, Social Security Number, Birthdays (Some lender require this) and your signature, as the lenders will make sure they match. They also need a copy of your mortgage statement or coupon and if you have it, a recent letter showing the amount you are behind.

Third, if they charge an upfront fee, it will be up to you to pay it or not. Some con artists and legitimate short sale/foreclosure experts charge this, the only difference is, the legitimate experts do it because of the paperwork and time involved, whereas con artists just want to milk you dry of your hard earned money. Also keep in mind the fee is completely negotiable.

Fourth, and here is where common sense comes in, If it sounds too good to be true, it always is!

Remember to take some time and think about it. If you aren't sure, seek out advice from other experts such as real estate agents, loan officers, the new government hotline and even attorneys. Never be afraid to discuss your situation with people who can help you. If you don't then you may never know if you could have done something different or really gotten help.

Just because you are facing foreclosure doesn't mean you are a bad person. Maybe you lost your job or got injured. Maybe you made a bad decision or bad investment. Who hasn't? The point is we all have at one point or another and that doesn't make us bad. We just learn from it and move on.

It's Been Too Long...

Tue, 19 Feb 2008 04:08:13 -0600

I have been away for too long from the rain. Last week my computer decided, without my permission, to take a permanent vacation to the Carribean. It took me almost 3 days to get my data off of the crashed hard drive, replace it and restore all of the programs that I had to get it working again. Then my internet was installed on Saturday and ever since then I have been having a problem coming up with an article to write about on the rain.

I have been trying to come up with something for two days now and have come up with a few topics I am going to cover in the next week or so. I have been delaying a few articles, updates and new information so I am going to try and catch it all up this week. Sorry for those of you who have been wondering where I have been and are missing my ramblings and thanks for your concern.

I think I am going to start doing some research on the latest Real Estate Scams and post that tomorrow. I have been researching it for the last few weeks (when I had the time) and can't believe what is going on out there, including some scams right in my own neighborhood. But, seeing as it is just after 2:00 am here, I am going to bed. Goodnight to all and have a busy and sucessful tomorrow (or today, however you look at it).

Beautiful 3 Bedroom Home In Fontana

Fri, 15 Feb 2008 17:58:04 -0600

Beautiful 3 Bedroom Home in Fontana

$299,000

Location:
11439 Bolero
Fontana, CA 92337

Map and Directions

Description

Beautiful Short Sale Home Located in Southridge Community of Fontana! This stunning home features an Open & Airy Floorplan, 3 Large Bedrooms, 2 Bathrooms, Large Living Room, Dining Room and more. The Kitchen Features Oak Cabinets, Pantry and Plenty of Room To Add A Center Island! Just off the Kitchen is the Indoor Laundry Room and 2 Car Attached Garage. The Master Suite features a Walk-In Closet, Dual Vanities and more! The Kids Bedroom Features Custom Paint with Animals! This One Won't Last!!!

Photos

Listed by:
Charles Tharp
Prudential California Realty

Beautiful Executive Home in Wildomar

Mon, 04 Feb 2008 15:10:48 -0600

Beautiful Executive Home In Wildomar!

$364,900

Location:
35804 Octopus Lane
Wildomar, CA 92595

Map and Directions

Description

This Beautiful Executive Home Features an Open & Airy Floorplan, Spacious Living Room & Family Room, Indoor Laundry Room, Kitchen With Center Island, Oak Cabinets, Walk-In Pantry, Pool & Spa, Built-In Barbeque and Much More. Located in a Quiet, Kid-Friendly Area, This Home Is Perfect For Entertaining and Growing Families.

Photos

Features

Single Family Home
Open & Airy Floorplan
Spacious Living Room With Fireplace
Huge Kitchen With Island
Oak Cabinets
Huge Walk-In Pantry & Laundry Room
Master Suite With Dual Vanities
Built-In Barbeque
Pool & Spa
Quiet, Kid Friendly Area
Close to Schools, Freeway and More

Listed by:
Charles Tharp
Prudential California Realty

Buying a Short Sale Property? Please Be Patient

Mon, 04 Feb 2008 15:04:30 -0600

Congratulations on deciding to purchase a home. Right now is the best time to buy. Prices are low, interest rates are under 6% and sellers are offering discounts and incentives for you to consider buying their home. However, what about making an offer on a short sale property? There are a few things that you as a buyer need to be aware of before making an offer:

First, if you fall in love with a home that is a short sale and decide to make an offer, be prepared to wait a few extra weeks or months for your offer to be accepted. With a short sale, the listing agent has to get approval from the bank before they can accept your offer and open escrow.

Right now lenders are overwhelmed with the number of short sales and foreclosure properties they are dealing with and it can take weeks or months to get the bank to say yes to your offer. Keep this in mind when you are submitting an offer on a short sale.

Second, when writing your offer, try to keep what you are asking for down to a minimum. Lenders typically want to keep their overall expenses down and therefore don't want to pay for repairs, termite work, home warranties (although some do), and thousands of dollars in closing costs. Knowing this, lenders are willing to give you a break somewhere else: The price!

Lenders would rather give you a flat discount on the price rather, than open themselves up to costly repairs and high closing costs. All lenders know that short sales can cost them tens to hundreds of thousands of dollars and with the declining home values in some areas, the longer it stays on their books, the more it could cost them in the long run. Lenders would rather give you a discount of tens of thousands of dollars now (sometimes as much as $50,000 or more depending on where you are buying) than having to lose that and possibly more in the future.

If the home does need some repairs, such as carpet, paint and more, then factor this in to the price you are willing to offer. If necessary, take photos of the damage and have the listing agent submit it to the lender with your offer. Remember, the lender hasn't seen the home so they just assume everything is fine with it. If you show them it needs repairs, even minor ones, they may just be willing to accept your offer.

When the lender accepts your offer and you open escrow, please be flexible. There are still a few things that must be done that your agent will take care of, however since you still have to deal with the lender, it can take a little extra time. Escrow's typically run between 30 and 45 days.

Just remember that even though it took some extra time, you saved a lot of money buying a short sale, and that is worth every penny!

Common Real Estate Tax Deductions

Wed, 30 Jan 2008 18:14:18 -0600

Seeing as everyone is filing their taxes for 2007, I thought I would post what is tax deductible for Real Estate. Please be sure to check with your tax advisor or CPA for rules regarding your state.

Deduct The Points:

If you bought a home in the last year or obtained a home improvement loan, you may deduct many of the costs associated with obtaining the loan, including any points that you paid. A point is equal to 1% of the loan amount. If you re-financed your loan last year however, you can only deduct those fees over the life of the loan or until you re-finance again, in which case you can write-off the entire deduction for that year, plus a portion of the new loan points. Take your closing statement with you when filing your taxes so your tax preparer can include these deductions.

Property Taxes:

Everyone hates to pay these, however they do have the benefit of a tax deduction. If you bought a home last year and escrow prorated the property taxes, be sure to take that deduction as well. Some states do not allow you to take the entire amount paid in property taxes as a deduction, rather they will give you a percentage of the total amount paid. Be sure to take your county tax assesors statement with you when filing.

PrePayment Penalty:

If you re-financed last year and had to pay a prepayment penalty to do so, you can claim this as a tax deduction as well, which can save you thousands of dollars on taxes depending on the amount!

Mortgage Interest:

Another tax deduction that you get as a homeowner is the mortgage interest. If you have an interest only loan, everything you paid to the loan last year will qualify as a deduction. If you made both principal and interest payments, only the interest part is deductible. Lenders typically send you a statement in January regarding what you paid in both Principal and Interest. Make sure to take this with you when filing your taxes.

Relocation Costs:

If you had to relocate last year for a job, typically you can write-off the entire costs of having to move. The only requirements are that your new job must be 50 miles further than your previous job and, that you work at least 39 weeks (78 weeks for self-employed) at your new job for the tax write-off. In some cases you may not have to itemize the deductions, however check with your tax preparer.

Homeowner Expemtion:

In some states you automiatically qualify for a reduction in taxes just for being a homeowner. In California, this amount is $7,000 and is only for your principal residence. Again check with your tax advisor to see if your state has this.

As you can see, there are a lot of benefits to owning a home. In some cases, this can drop your income by over 25%, allowing you to get a bigger refund, or at least, owe less to the IRS.

The Conforming Limits Are Being Raised to What?!

Mon, 28 Jan 2008 19:48:14 -0600

There has been a lot of talk lately about the government allowing Fannie Mae and Freddie Mac to raise their conforming loan limits. I have also heard a lot of speculation that FHA is going to raise their limits as well. Unfortunately I have also been hearing a lot of rumors, lies and complete misinformation being fed to everyone, including buyers, sellers, agents, loan officers and everyone else in this mess, so I wanted to get the actual facts out to everyone.

First, the government is considering (meaning NOT finalized) allowing Fannie Mae and Freddie Mac to raise their conforming loan limits for this year, and this year only, to either $625,000 or $729,750 in high-cost areas. They haven't decided on which limit as of yet, however the deadline for the loans would be December 31, 2008 and not a minute later.

Second, the government is going to raise the FHA limit permanently (if this passes) to $729,750 for Single Family Homes in high-cost areas only. This does not mean that people in an area where the median home price is $175,000 can get a mansion under FHA, even if they qualify financially. It is only for high-cost areas where the median home price is high (above $417,000). As for the FHA Guidelines, the down payment is still going to be 3% and the home will still have to meet FHA requirements.

This is great news, especially for those of us in High-Cost Areas! It is finally going to allow Fannie and Freddie to take on the Jumbo markets, help homeowners re-finance, help buyers get a home, free up funds at the banks and so much more. Now lets hope that Congress will get their butts in gear and get going!

Drum Roll Please....And The Best Time To Get A Jumbo Loan Is....

Fri, 25 Jan 2008 14:51:25 -0600

NOT NOW! That's right. The best time to refinance a jumbo loan is to wait until April 1st. Before all of you start wondering if I have fallen off of my rocker let me explain. I just received word that the conforming loan limits are going to be raised for 2008, and only 2008. The Feds have finally done something to help those people in higher cost states like California, New York and Florida to name a few.

The conforming loan limits are currently at $417,000, which for those of us in California or other high costs states, means that if you purchase or refinance a home right now, chances are it will be considered a jumbo loan (a loan over $417,000) and you will get overcharged on the interest rate.

Ah, but if you wait until around April 1st, the conforming loan limits are going to be raised to $625,000! This will only be for 2008 so this will be the year to get rid of any adjustable rates and locked in a nice 30-year fixed rate loan for a low interest rate. Let me show you a comparison.

	Conforming Rate	Jumbo Rate
Loan Amount	$ 600,000.00	$ 600,000.00
Interest Rate	5.75%	7.125%
Monthly Payment	$ 3,501.44	$ 4,042.31
Monthly Savings	$ 540.87	$
1 Year Savings	$ 6,490.44	$
5 Year Savings	$ 32,452.20	$
10 Year Savings	$ 64,904.40	$
20 Year Savings	$ 129,808.80	$
30 Year Savings	$ 194,713.20	$

If you take a loan of $600,000 out today, it will be considered a jumbo loan. At today's rate of 7.125%, it gives you a payment of $4,042.31. If you wait until the conforming limit is raised, you now have a payment of $3,501.44, or a monthly savings of $540.87! That means in 30 years, you will have saved almost $200,000 by waiting 2 months or so to refinance or purhcase.

So could you use an extra $194,000?

ICK! I Have Been Sick

Thu, 24 Jan 2008 15:05:01 -0600

Hey all,

I just wanted to appologize for not keeping up with my blogs and my group. I ended up catching a head cold on Sunday night and this is the first day I could get out of bed and have some energy. This thing came out of left field and took me right down. I am going to catch up on some paperwork and then I will be back to post some blogs and read all of the posts in my group. Thanks for hanging in there.

2008 Southern California Rebate Programs

Tue, 15 Jan 2008 15:00:59 -0600

After getting all of those wonderful Christmas bills, we are all looking at how we can save money. One way of doing it is to take advantage of the new rebate programs this year. Rebate programs are offered by almost everyone including; Counties, Cities, Electric companies, Water Districts, Gas Companies and more! Below is a list of every rebate currently being offered in the inland empire.

Chino Hills: They deserve a special mention for those who own multi-family units. Owners may qualify for replacement of older toilets for FREE! Call them at 909-993-1749 for more information.

For everyone else in the Inland Empire, you will probably qualify for a rebate through the IEUA, or Inland Empire Utilities Agency. They offer rebates for residential and commercial businesses. Here is a list of what they offer.

Synthetic Turf: $.60 credit per square foot (or $26,000 per acre) for installing synthetic turf. This can be astroturf or any other type of turf.

Rotating Nozzles For Sprinklers: While reducing water usage by up to 40%, you can get a rebate for $4 for each one installed.

Water Wise Residential Landscaping: $2 Per Square Foot up to a $2,000 maximum per address for installing low water plants, aka California Plants. See their website for more details.

High Efficiency Toilets: Replacing your older toilets for more efficient ones (1.28 Gallons Per Flush Maximum) Will qualify you for a $150 rebate! This program available for those residents in Chino, Chino Hills, Fontana, Montclair, Ontario & Rancho Cucamonga only.

Ultra-Low Flush Toilets: Replacing toilets with 1.6 gallons per flush will qualify you for a $50 rebate. This program available for those residents in Chino, Chino Hills, Fontana, Montclair, Ontario & Rancho Cucamonga only.

High-Efficiency Washers: Replacing your clothes washer with an energy efficient one will qualify you for a $100 rebate! This program available for those residents in Chino, Chino Hills, Fontana, Montclair, Ontario & Rancho Cucamonga only.

Smart-Time Water Controllers: By installing a smart-time water controller, which automatically adjusts how much water your lawn and plants get by weather conditions and seasons, you will qualify for a rebate of up to $240.

SOUTHERN CALIFORNIA EDISON:

These are all of the rebates being offered by SCE.

Refrigerator: By replacing your refrigerator with an energy efficient one, you qualify for a $50 rebate. Recycle your old fridge or freezer and get another $50!

Water Heater: Replacing your water heater with a new, energy efficient one, you qualify for a $30 rebate.

Window Air Conditioner: Buying an energy efficient Air Conditioner for the summer? Get a cool $50 rebate to go with it!

Whole House Fans: These are installed in the attic of your home and blow heat out, cooling your house by up to 30%. Install this and receive $50!

Roof: Putting a new roof on your home this year? Get up to a $.20/square foot rebate for doing it!

Variable Speed Pool Pump: Installing one of these will get you a $200 rebate!

SOUTHERN CALIFORNIA GAS COMPANY:

Tankless Water Heaters: Probably the best invention yet. These will give you a constant supply of hot water, up to 45 minutes. Install one of these and qualify for a $200 rebate!

Uh Oh...Tax Problem in California for Short Sales/Foreclosures

Tue, 15 Jan 2008 13:31:19 -0600

I was listening to the news last night driving home at 11:00 and heard that the State of California has not approved a legislative bill allowing you to not pay taxes on the deficiency amount. Even though President Bush signed this into law (December 17th) regarding your Federal Taxes, the State of California has not passed this law regarding state taxes.

According to the state, you must claim this as income and pay taxes on the amount through the state...at least for now. There is a bill working its way through the legislature to waive this, however we don't know when it will pass, or if it will even be backdated. This could be devastating to those who have lost their homes due to foreclosure, or those who had to short sell it in 2007.

So please, if you have done a short sale or had your home foreclosed on, please check with your tax advisor to see what your tax liability may be.

Congratulations...You Just Bought A Home With over $100,000 in Equity!

Mon, 14 Jan 2008 15:14:07 -0600

I was showing some homes to a buyer before the end of last year. I was showing them a beautiful home in La Habra and they fell in love with. The seller was asking $515,000 for his home that had been completely remodeled, including the pool and spa. I mean they had replaced all of the windows with energy efficient thermal windows, installed a new furnace and air conditioner, re-plastered the pool and spa and replaced all of the equipment. The kitchen was absolutely spectacular. New cabinets, stainless steel appliances (that were included in the sale), granite countertops - the works. My client decided to write an offer.

Before writing the offer, I wanted to check the comparables out (like I do on every home I am writing an offer on) to see what I thought the actual value was. I figured it would be about $540,000 to maybe $550,000. Not bad really considering the shape of the home and the lack of sales in the area. I couldn't have been more wrong!

The appraisal just came in this morning. After picking my jaw up off of the floor, I had to call my client as I knew it would make her day. The final value: $610,000. Congratulations...You just walked in with over $100,000 in equity.

See how working with an agent can get you a great deal!

Short Sale! 4-Units in Redlands -212 Craig Court

Mon, 07 Jan 2008 17:58:25 -0600

4-Unit Short Sale in Redlands

$569,000

Location:
212 Craig Court
Redlands, CA 92374

Map and Directions

Description

Stunning 4 unit property in quiet, kid friendly area of Redlands. Located within walking distance to University, these units feature a 3 bedroom, 2 bathroom front home with private yard. Three additional units are all 2 bedroom, 1 bathroom apartment style units.

Photos

Features

3 Bedroom, 2 Bathroom Home
3 - 2 Bedroom, 1 Bathroom Units
Onsite Laundry Facility
Walking Distance to University
Quiet, Kid Friendly Area
No Rent Control
Qualifies for FHA Financing!

Neigborhood Info

Close to Schools, Shopping, Freeways and more.

Listed by:
Charles Tharp
Prudential California Realty