California Mortgage Advisor

Flipped, Stripped or Information Skipped: Properties Need to Be PreApproved Just Like Buyers

Janet Guilbault California Mortgage Banker/Broker — Thu, 10 Dec 2009 12:10:11 -0600

Actually, I find it ironic.

All those rants from real estate agents about preapproval letters. You told me you thought they were about as worthless as a wet cocktail napkin. That caused me to upgrade my own preapprovals to be AIRTIGHT.

But now the tables have turned. Now I feel your pain. Why? Because the PROPERTIES are being so heavily scrutinized by the lenders that we need preapprovals on properties just like we need preapprovals on people.

And sometimes the information that comes through on the property is about as worthless as (you guessed it) a wet cocktail napkin.

I am going to be honest: lack of information and lack of correct information about properties is slowing down the loan approval process.

No mortgage person wants an e-mail like this one I received yesterday:

Delivery of report will be delayed due to difficulty getting HOA information. Listing and selling agents both provided incorrect HOA numbers-I was directed to a third one this morning and have emailed them my request for information.

Here are some items that have reared their ugly heads as surprises this week:

Property had been flipped.
Property had been lived in 2 years by builder but did not pass the final inspection.
Property had been gutted.
Property has incorrect Zip Code (Did you know some lenders will not allow buyer to own 2 properties in the same zip code?)
Property had a prior FHA appraisal done on a loan that fell through (this is now the only appraisal FHA will use for 6 months)
Condo complex not 51% owner occupied
Property not a condo, it is a PUD
Condo complex no longer FHA approved, although listing said it was
Wrong homeowner's association dues appear on the listing.
Litigation pending on the condo complex

No, all of these issues did not appear on one loan (Laughing.....) But I have done more condos this year than ever before because of the surge in first time buyers. Same thing with flipped and stripped properties.

Now I take the time at the very beginning to interview the listing agent about the property.

Why? Because listing information is not airtight.

To the listing agent: Please forgive me if I grill you. Somewhere along the line, someone, somewhere, is going to need to provide AIRTIGHT information about the property to the lender.

The sooner the better.

Because surprises about the property can change, delay, or blow up the loan.

And because nobody wants a wet napkin with their cocktail.

Cheers.

Written by Janet Guilbault, Mortgage Banker and Direct Lender Based Out of the San Francisco Bay Area.

Why You Should Thank the Next Person That Compares You to a Used Car Salesman

Janet Guilbault California Mortgage Banker/Broker — Wed, 09 Dec 2009 08:26:51 -0600

I was wondering what would happen if used car salesmen were called Wheeltors, and real estate agents were called "used house salesmen"?

Do you think that Wheeltors would stand around at the car dealership wondering why people would lump them in the same sleazy category as some "used house salesman"?

After abandoning my real estate career to join the family business I figured this out: The reason I was (accidentally) so good at selling cars was because I had been a Realtor BEFORE my husband got the crazy idea to buy a car business.

Go ahead. SQUIRM.

I know you don't like thinking that you have any similarity to someone who sells cars for a living. Selling used houses is far superior different.

But here's the truth: Wheeltors and used house salesmen have a lot more in common than handing over keys at the end of a transaction.

In both cases:

Customers are nervous because they are making a major purchase
Customers usually must finance this purchase
The world makes judgments about you based on what you drive and where you live. That makes the decision emotional
Buying a house or buying a car is one of the only purchases where there is negotiating. In our culture, negotiating is NOT second nature. It is uncomfortable.
Other than first timers, the old house or the old car has to go away before you can get the new one.
You want to make sure you are not buying a moneypit
You appreciate a pristine presentation from staging/detailing
All that fine print and paperwork makes you crazy.
Secret thought # 1: "Am I paying too much?"
Secret thought # 2: "Does this salesperson have my best interests at heart? Or only his commission?"

Maybe...just maybe... what makes a used house salesman the same as a Wheeltor is much more important than what makes them different.

Maybe respect is overrated. Respect is about what other people think, after all.

But if respect is important to you then understand you don't get it by showing a lack of respect for another hard working soul.

Respect is not something you get by claiming your superiority or by explaining all the reasons you deserve to have respect in comparison to another.

We cannot demand that the world respect our profession.

Respect is a lot like trust. The only way to get it is to earn it.

You do it one set of keys at time.

Written by Janet Guilbault, Mortgage Banker, Broker and Direct Lender Based Out of the San Francisco Bay Area

10 Positive Predictions for Real Estate in 2010

Janet Guilbault California Mortgage Banker/Broker — Fri, 04 Dec 2009 15:16:40 -0600

Homeowners come to terms with the harsh reality of declining values. I believe we will see movement in the move-up market. Enough time has passed that the reality has set in. Those "waiting it out" for a higher price will decide to sell and move on.
The return of jumbo money. Behind the scenes, I suspect lenders are trying to figure out how to capture a lucrative market that has been kicked to the side of the curb: Buyers with great credit, solid assets, and high incomes. Wait...tell me again why these people should pay far higher rates than the store clerk with no assets and a 650 credit score????? Which loan would you rather have?
Washington will finally "get it" when it comes to jobs being the #1 issue with the economy. Okay, you can give money away to banks, car buyers, and real estate buyers all you want. But no one is going to buy anything if they don't have a job, or are afraid of losing the one they have. Washington will come to the rescue.
The economy gets a nice boost when homeowners finally need to fix their houses. My new client works at the local Home Depot. He told me his store did well over $300k in business on Black Friday and management was astounded (okay...there are a lot of Christmas trees in that number). But I say that many homeowners have held off as long as they can and will need to repair/upgrade their homes next year.
Babyboomers revitalize the second home market. I know, I know. The standard theory is that the second home market is the last thing the rebound. But I am going to go out on a limb and say that prices are ridiculously low and Babyboomers are ridiculously ready to escape from the madness of this economy. PS They are also sitting on equity from owning their homes for so many years.
Investors will be out in force and they want real estate. We all know that investors with cash are out in force competing with first time buyers for real estate. But next year I predict this market will really ignite. Why? How about once in a lifetime opportunity to grab dirt cheap properties AND good terms to finance said properties. The non cash investor will join the property grab.
Surprise! The tax credit ends for first time homeowners and they still keep buying houses! Want to know a secret? They are buying for the same reason as investors. Not because of the tax credit. Because houses are cheap. They will still be around and still be buying houses.
The world does not come to an end when ARM loans start to adjust, but a refi boomlet could help the mortgage industry. I have analyzed more ARM loans than you can shake a stick at. And I just don't see it as a disaster waiting to happen. At least not next year. Rates will remain low enough for most homeowners to absorb the adjustment into their budget, or refinance into a 30 year fixed rate loan.
The quality of people in the real estate industry continues to upgrade. The pretenders and hacks have mostly fallen by the wayside leaving the smartest and most committed in the business. Competition keeps shrinking.
Marketing is much cheaper than it used to be, thanks to social media. All that postage. All those postcards, magnets, calendars and trinkets. Gift baskets at closing. Newsletters. Forget those. Now you have Facebook, Twitter, ActiveRain, and a website. And it all costs much less, and allows potential clients a much better look at who you are and what you stand for. You gotta love that.

Written by Janet Guilbault, Mortgage Banker, Broker, and Direct Lender Based Out of the San Francisco Bay Area

(Rain)Camping in San Francisco: SMOKIN' HOT (Without the Marshmallows)

Janet Guilbault California Mortgage Banker/Broker — Thu, 03 Dec 2009 11:05:26 -0600

San Francisco is known for many things, neither of which have a thing to do with RAIN or CAMPING.

We haven't seen any wilderness suitable for camping since the Gold Rush transformed this place.

Unlike Seattle, we get only a little drizzle of rain in the winter (never enough).

Buy if you put RAIN and CAMP together, add a dose of SEATTLE, then put it all on a stage in SAN FRANCISCO, what do you get?

RainCamp in San Francisco, of course.

The place literally crackled with electricity and excitement as hundreds of Rainers, poised with laptops open, skipped a day in the office yesterday to COME TOGETHER.

And come together we did.

As Tiger Woods confessed his sins, Brad Andersohn and his rock star family ironically opened the event with "The Eye of the Tiger". (Okay, Brad, we're awake now).

As it turned out, that performance was appropriate, even at 9AM.

This was a full blown "how to be a real estate rock star" by connecting blogging, social networking, and the world of Web 2.0. The information came hard and fast.

But what is always best about an ActiveRain gathering is something you can't see. It does not appear anywhere on the program. Still, it surrounded our group the entire day, clinging just like the mist from a San Francisco fog.

Always, it is about the spirit of community.

You come to help one another succeed. To move forward. To learn. To share ideas and compare notes.

You come to be inspired by the success of others. To bathe yourself in optimism when your co-workers have spent the last week telling you "this market sucks".

You know the person next to you even if you have never seen him before in your life.

I still get amazed at how easy it is to bond with a fellow Rainer nearly instantly.

And that leads me to what this day was all about: bonding.

If we can connect so easily with each other via an online community, then the same spirit of bonding is possible with our customers.

This day was about creating an online community of your very own. Here is the future: your customers will bond with you via social networking long before they choose you as their agent.

We didn't decide this is how it would be. The customers did.

That is why I believe we are all a part of a revolution. I can think of no other industry that has embraced social networking to the degree that we have in the real estate profession.

It always gives me a sense of being two steps behind.

But I figure striving to keep up is a great alternative to being left in the dust.

And you know what the best thing is when you are standing out there covered with DUST?

Lots and lots of RAIN.

To the entire staff of ActiveRain, including the elusive Jon, thank you for yesterday.

Written by Janet Guilbault, Mortgage Banker, Broker, and Direct Lender based out of the San Francisco Bay Area

Economic Cancer: That Sense of "Entitlement"

Janet Guilbault California Mortgage Banker/Broker — Fri, 23 Oct 2009 11:01:26 -0500

When did we start to feel entitled?

In the Depression of the 1930's, the jobless father of 4 asked the farmer if he could work on the farm for a day in exchange for food to feed his family.

In the Depression of 2010 do we just take the food from the farmer because, after all, you and your family are entitled to eat?

Are we:

Entitled to a life better than our parents had?

Entitled to own real estate?

Entitled to dis-own real estate?

Entitled to be bailed out?

Entitled to a job?

Entitled to health care? And to social security when we grow old?

You would sure think so by what surrounds us.

Why work? Why pay your bills? Why take care of your health and your finances? Why respect what others have earned?

Do we take the course that will help us? Or do we just help ourselves to what others have produced?

When did we start to believe that America owed us more than life, liberty, and the pursuit of happiness?

Is it because the government has redefined the word "rights" to include never needing to suffer?

Is it because a generation came of age when stock market wealth and real estate equity made it seem like real work was obsolete?

Did 100% stated income loans with a few years of teaser rates train us to believe the American Dream was what every American deserved?

Did plastic in our wallets make it seem like our rights included unlimited gratification?

Somehow, we have lost our way.

Let us hope to sprout fresh green grass across America we do not need to completely kill the roots.

Written by Janet Guilbault, Mortgage Banker/Broker and Direct Lender Based out of the San Francisco Bay Area

The Death Spiral of Move Up Buyers: First Time Buyers Are Not Enough to Save Us

Janet Guilbault California Mortgage Banker/Broker — Fri, 02 Oct 2009 10:02:43 -0500

Move up buyers are becoming extinct in California.

With an epidemic of negative equity sweeping the state, we must ask ourselves this question:

Do we really believe that there are enough first time homebuyers out there to turn this market around?

In the bubble years of 2005-2007, buying a house in California was often a "closing cost only" affair.

Buyers used an 80% first loan with a 20% HELOC right behind it, for a neat and tidy 100% loan.

Then they promptly spent their savings "fixing up the house" because after all, they could refinance a year later and the house would belch out another hundred grand.

They also gladly paid $500,000 for a starter home (inland) and $700,000 (coastal).

This, my friends, is the sorry state of our "MOVE UP" buyer market. Clearly they're not MOVING anywhere anytime soon.

Most of us believe the negative equity tipping point (going upside down) is when you owe one dollar more on your house than the value of your house.

Not so.

If the homeowner cannot pay enough to extract a real estate commission, a down payment on the MOVE UP house, AND moving expenses, then the tipping point of negative equity is probably closer to 90%, 80% or even less.

A homeowner with 10% equity knows they are trapped. If you lower the negative equity bar, then this changes everything.

There are far more "trapped" homeowners than most of us believe.

Can they save their way out? You might think so based on how little consumer spending is going on.

Or will they just walk out as another "strategic foreclosure" goes on the books? (Strategic foreclosure = you can afford the payment but decide to dump the house because you are so far underwater)

Either way, it's a LOSE-LOSE for the economy.

Without these existing homeowners active in the real estate market, home prices will not find a bottom.

Here is a death spiral scenario:

Mid to high end house become illiquid assets.
Prices plummet as supply far exceeds demand, and "strategic foreclosures" continue
Banks (to protect themselves from declining values) tighten lending standards further and demand larger down payments.
30% down becomes the norm moving the bar even further away for the trapped
Baby boomers dump the grand houses that characterized their materialistic phase to raise capital and lower expenses.

In previous posts, I have already asked this: "Who will want all of the big houses that baby boomers will be dumping?"

Revision: "that BANKS will be dumping."

Here are my predictions:

Prices will continue to decline for markets that are out of reach for first time buyers.
Smaller houses will cost more than larger houses as low operating expenses and lower property taxes trump outdated mcmansion style living, and the only buyers out there are investors and first timers.
More foreclosures at the upper end of the market.

Written by Janet Guilbault, Mortgage Banker/Broker based out of the San Francisco Bay Area.

Using Those "Nasty Little Tricks" to "Test" a Potential Mortgage Person

Janet Guilbault California Mortgage Banker/Broker — Mon, 14 Sep 2009 12:56:32 -0500

This comment, which appeared over the weekend on a featured post made me extremely uncomfortable:

"One of my nasty little tricks is to coach Realtors to ask my competition to explain APR as a knowledge test."

Okay, everyone, let's not use hidden agendas when we connect. Why not? Because "nasty little tricks" are not the foundation for great relationships.

Trust is.

We owe it to our mutual clients to bring trust to the table when we handle the most important transaction of their lives.

If you are a Realtor who would like to connect with a great mortgage person, just say what is important to you and and ask for some feedback.

Be open. Be honest. Be transparent.

If that isn't enough, ask for referrals or testimonials. From other Realtors. From past clients.

Read their blog. Have coffee together. Ask their advice on transactions. Ask if they publish a newsletter.

Take your time, there's a lot on the line. Being proactive when you select a mortgage person is one of the best things you can do for your real estate practice.

But please, don't administer "tests".

Don't give a mortgage person your worst file, the one turned down by 5 other lenders, to "test" how hard she will work on a difficult file. (This would be like the mortgage person "testing" you by referring a client she knows will not qualify for a loan).

Don't leave a message at 9:30 on Saturday night to "test" how responsive she will be with calling you back.

And please don't give a "knowledge test" on any mortgage subject. Chances are, you are not qualified to administer such a test (acknowledging there are exceptions to this.....).

You need to evaluate any potential referral partner. I respect that.

I want to respect you, TOO.

But how can I when you're not being straight up?

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

Buy Then Bail... Go Straight to Jail (Do Not Pass Go)

Janet Guilbault California Mortgage Banker/Broker — Sat, 12 Sep 2009 10:34:05 -0500

As a mortgage person in the current wild and wacky real estate market, I sometimes get clients who want to buy and bail. So what's a buy and bail?

The call goes something like this:

"Hello, lovely mortgage person? This is Babs ( Buy and Bail Soon). My house is worth $175,000, but I owe $300,000. Since I will never be able to repay this, I am going to walk away."

"But first, most lovely mortgage person, you will get me a loan to buy a house just like mine, which is only down the street, and selling for $175,000...?"

"You can get me this loan while my credit is still good, before I walk away. My payment will go way down, and we can just tell the bank we are going to RENT my old house."

"Wow. Am I brilliant or WHAT? Buy the same house cheaper, bail out of the old one afterwards"

(I love the way they believe they are the first person EVER to think of this)

Okay, this has created a new mortgagespeak term: The departing house. And there are RULES in place so banks don't get stuck in schemes like this:

If your home is in a negative equity position, the lender would

•1) Force you to qualify for the new home without using the rental income from the old home

•2) If the loan on the old home is adjustable, the underwriter has the ability to caluclate the payment on that house at the highest possible amount after adjustment (even if the loan is not adjusting in the near future)

•3) If there is an equityline on the old house, the payment will be calculated at 1% of the amount of the equity line....even if the real payment is far less.

Even if these stiff requirements are met, without at least 25% to 30% equity in the old house, most lenders will decline the loan.

Why would they do that even if people really do plan to rent their departing house out and can prove it????

Because in the current lending environment, everyone is considered guilty (whether proven innocent or not).

Everyone is considered a potential foreclosure. And can we blame them?

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

The Cat That Came for the Summer

Janet Guilbault California Mortgage Banker/Broker — Thu, 10 Sep 2009 10:38:03 -0500

A story for anyone who has ever lost an animal they loved.

I had always thought of it as a sort of arranged marriage. I didn't expect love.

You had always lived inside, sitting on a window ledge, tail twitching, staring longingly at the world beyond.

I had always lived outside, tending the big garden in my pajamas at dawn, and fighting off the invaders.

And so you arrived in June, a gift from the apartment dweller who felt sorry for you.

We had a simple arrangement, you and I:

You, brown tiger, could live in my jungle. In return, you would guard it from invaders.

As the sun rose each day, you would stealth among the giant zucchini leaves, leaping high into the air when a finch landed on the sunflowers. You would stare at the gopher hole with unwavering attention for hours on end.

In the evenings, you would pretend to sleep under the cool redwoods while I drank my wine nearby. You were always there, a few steps ahead of me as we watered and fertilized.

You thought it was your job to de-tail every lizard. You thought the weeds were cat salad. You thought sharing your kingdom with the wolf-dog was a small price to pay for the delicious freedom from apartment living.

You thought the compost pile was your litter box.

You got braver by the day, taunting the wolf dog, lounging on the rooftops, and exploring ever farther away.

You dragged yourself home once after a nasty fight, and didn't get up for three days.

All we did was laugh...(nine lives and all of that).

One morning as I was bent over picking tomatoes, you rubbed against me. You purred for the first time. At that very moment, I knew it was no longer an arrangement.

Because we had fallen in love.

Summer sped by, as it always does. I started preparing the garden for the winter by pulling out the spent plants.

Maybe you thought your job was over. Maybe you thought it was just a summer fling. Because one night you left, and never came back.

They say if you love something, let it go free. But what if granting freedom means you lose what you love?

Little brown tiger, friend and companion, I thought you would be purring on my lap as we watched the blaze in the fireplace and the lights twinkling. I figured you and I were more than just a summer fling.

And outside, the garden is nearly barren.

Because you are gone.

Written by Janet Guilbault, Mortgage Banker/Broker based out of the San Francisco Bay Area.

Wordless Wednesday: And I Said I Wouldn't Take A Vacation (I Lied)

Janet Guilbault California Mortgage Banker/Broker — Wed, 09 Sep 2009 10:34:22 -0500

Blue Hawaii

Sunset at the Hula Grill

Extremely cheesy, "just arrived in Hawaii" photo

Outsmart the Crowd: Skip the $8000 Tax Credit and Wait to Buy

Janet Guilbault California Mortgage Banker/Broker — Mon, 07 Sep 2009 12:11:45 -0500

You are a first time buyer who has a sore butt. Why? Because you have been sitting on the fence all year long.

Could you be the smartest first time homebuyer out there?

Consider what happened when CASH for CLUNKERS overheated the demand for cars (just like the FIRST TIME HOME BUYER TAX CREDIT overheated demand for entry level houses).

Before Cash for Clunkers, dealers had huge rebates on cars. They were willing to discount the cars by several thousand dollars just to get someone, ANYONE, onto that empty showroom floor.

The car market was in the toilet and cars were dirt cheap.

Along comes a $4500 handout from Washington to manipulate stimulate car buyers.

And that's when things started to get twisted.

Rebates disappeared almost overnight.
Dealers were no longer willing to discount the cars.
As supply shrunk, a frenzy of buyers lost their heads, bought anything on the lot, and paid over sticker for the car...just to get their clunker cash.
The real price of buying a car went up.

Is the real estate market a little twisted right now? What do you think?

Agents everywhere talk about extreme lack of inventory for entry level houses.
Multiple offers are the norm for lower priced properties.
Across the country, stories about prices going up and the market turning around (even though it is well accepted that there is a foreclosure wave right around the corner).

So you. Yes you, the one with the sore butt. Keep sitting and watch what happens.

You could get a much better price on a house by letting the first time homebuyer tax credit JUST DIE while you continue to JUST SIT on that fence.

Picture this: Its a rainy cold day in December and everyone else is focused on the holidays. But not you. You're finally off the fence, you sly fox you, and the world is your oyster.

You can take advantage of all this:

Sellers are desperate.
The competition has disappeared.
Prices drop.
You have no pressure to buy and can be choosy about properties

If you save $20,000 on your house, do you care if you sacrifice an $8000 tax credit?

Probably not. (But don't expect anyone in the real estate industry to talk about this until AFTER the rebate ends).

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

My Pre-Internet Buying Experience: So SLOW. So STUPID. So Amazing that ANYONE Bought a House

Janet Guilbault California Mortgage Banker/Broker — Tue, 01 Sep 2009 14:54:41 -0500

My husband and I were moving back to California in one month and I was desperate.

I was not a real estate agent or a mortgage person in those days. I was just somebody who had sold her Dallas house, and was R-E-A-D-Y to buy.

No one "researched properties" in those days. How could you? You did what I did. You got on a plane and flew into town. Then you found yourself an agent.

Every buyer had to rely on information that was kept under lock and key by the real estate profession in those days. The list of properties for sale only appeared in a big fat book.

The MLS book. And if you were a buyer? ACCESS DENIED.

It looked like a telephone book and featured little black and white pictures of houses. You got in the car with your agent (who had the book with her). She had already selected the 3 houses that she thought were the best for you, and had called the owners to make appointments.

If those 3 houses didn't suit you, you started the whole process over the next day.

Can you see how hopelessly SLOW and how HIT and MISS this process was by today's standards? Today's buyers have cruised through 3 houses in 5 minutes via the Internet.

By the time my agent and I had rolled around for 3 days, and looked at exactly 9 houses, nothing struck my fancy. I was so desperate that my father begged, borrowed, (stole?) one of those old fashioned multiple listing books from a non-practicing real estate agent who was his friend.

My own Realtor would not allow me to look at hers. It was "against the rules".

I poured over it, only slightly guilty for viewing what was not meant for my eyes.

And then I saw it. "MY" house. Was it anything like what I had told my Realtor I wanted? Well....actually no.

Yes, I was one of those buyers who was also a liar. Or was I a buyer who just needed WAY more information to know WHAT I wanted?

I couldn't wait to unfold the old paper map (pre Mapquest), find the house, and drive by it. When I got there, I was so sure I wanted to buy it that I would have called the Realtor on the spot.........

But wait. There were no cell phones, so I had to drive back to my parents' house to make the call.

There was no voice mail so I left a long message with the secretary of the Realtor's office. She carefully wrote it on a piece of paper. Nervously, I waited. And I waited.

When the Realtor called me back she told me she would not show me the house because:

It did not suit what I needed (what????)
It was too much of a fixer
There was some kind of financing issue
No one could figure out why there was no electricity to the house
Someone told her there was a rattlesnake cruising around the yard.

But she would show me 3 more houses. Tomorrow.

I hung up and called the listing agent. What else was I supposed to do? I could not convince her to show me the house and she could not convince me the house was a loser.

And I was desperate.

But when I met the listing agent at the property, he had a man and a woman with him and they were walking around the property having a quiet conversation.

I sat in my car for ages, steaming mad that he would make an appointment at the same time to show another couple "my" house. I almost drove away.

Luckily, I didn't. (To be continued tomorrow.)

Written by Janet Guilbault Mortgage Banker/Broker Based Out of the San Francisco Bay Area

Buying a Laptop...Looking for Thumbs Up or Thumbs Down Input

Janet Guilbault California Mortgage Banker/Broker — Fri, 28 Aug 2009 11:49:45 -0500

I am buying a laptop and need your help.

If you are my reader, you know I am no computer geek.

But I do write alot, and get inspired in the weirdest places.

I have a fuzzy dream of writing on my laptop on a beach somewhere while palm trees sway in the background...and mortgage madness is FAR FAR away.....

Okay, back to reality. More likely I am at a seminar with it sitting on my lap, or at a client's house filling out credit info.

Does anyone have a suggestion of what computer would fulfill the needs of a serious blogger and mortgage person?

Wish list:

Easy keyboard with number pad for writing blogs and calculating mortgages.

Easy Internet for hopeless web surfer.

Ability to handle anything to do with my photos.

Big bright screen, yet lightweight for my noodle arms to carry around

Great customer support

Not needed:

Ability to play games

Ability to watch movies

Will not consider because of lousy experience

Any thing made by DELL

Thanks in advance! Would love to know what you use... and why you like it. If there are pitfalls, please share.

Happy Friday to you,

Janet

New Bill Seeks to Extend (and Expand!) the Home Buyer Tax Credit

Janet Guilbault California Mortgage Banker/Broker — Tue, 25 Aug 2009 16:00:56 -0500

Okay, the name for this new bill may not be as catchy as "Cash for Clunkers" but you gotta love it:

Home Ownership Moves the Economy(HOME) Act of 2009. HR 2801 was introduced by Howard Coble (R-NC).

It would continue the current tax credit for first time homebuyers set to expire on December 1, 2009, with a couple of notable changes:

Income restrictions would be removed
Buyers do not need to be first time buyers

Okay, everybody, all together now "SHHHHHHHHHHHHHHHHHH". For those of us who decided not to take a vacation in October and November to handle the "rush" of people trying to beat the deadline, this will squash that idea.

Who will rush to buy if they are going to extend the credit anyway?

People like my kid.

She is a potential first time buyer who makes way too much money to qualify and gets KILLED each year paying income tax. She may be jumping off the fence when she reads this.

And people like her are much more likely to help the economy (they have more disposable income).

Wait a second, didn't I suggest this very same idea in this post?

Also written today: How 15 Year Mortgages Could Save the Economy

Written by Janet Guilbault, Mortgage Banker/Broker based out of the San Francisco Bay Area

Is It Time to Kick Our Addiction to 30 Year Mortgages? How 15 Year Mortgages Could Save The Day

Janet Guilbault California Mortgage Banker/Broker — Tue, 25 Aug 2009 09:57:59 -0500

Is it time to kick our addiction to 30 year mortgages? Could it be that 30 year mortgages are harming our industry by contributing to negative equity situations faced by so many homeowners?

To answer these questions, we only need to look at the auto industry, a place where no one cares that their car is "underwater". But when your house is underwater? All hell breaks loose.

People think it is okay to just walk away from their house (and another foreclosure is on the books).
People demand a modification even if they can afford the payment and don't want to move.
People try to blame loan officers, real estate agents, and believe the whole gig is a grand conspiracy against them by the real estate industry
People demand that the government "do something"
All kinds of phony baloney "loan modification" people come out of the woodwork
Real estate agents convert to "short sale" experts
Prices spiral downwards and investors circle like vultures to buy up cheap properties
People sit on the sidelines and stew about "finding the bottom of the market" instead of buying a house that they really love.

Meanwhile, in their garage is a one year old car worth $15,000 that has a loan on it for $22,000.

I don't see ANYONE waiting for the "bottom of the market" to buy a car, or asking for a bailout because their car is worth less than the loan. And I sure don't read anything about the public being "mad" at car dealers because their car is "underwater".

Now maybe you are ready to argue with me that real estate is different because it is an appreciating asset.

Oh really? Would you please explain that to all of my appraisers? Or my underwriters who will rip to shreds any appraisal that shows a house actually went up in value?

Why are cars different? The length of the loan matches a reasonable length of time you will use the asset.

That simply is not true for the mortgage industry. How many people do you know still in the same house after 20 years? Or even 10 years?

With a car you know this: Worst case? You keep driving and pay it off. It isn't unreasonable to think you would keep the same car for 5 years. Is it a conincidence a standard car loan is for 5 years? No.

What do we do in the real estate industry? Make our loans SO LONG that it is rare to get to a point where you can say, "what the hell, in a few more years I will own this free and clear. I'm stayin' put!"

Who can see the light at the end of a 30 year tunnel?

Is it time for us as an industry to start encouraging 15 year loans? I think it is.

I agree that many people could not afford the payments, or would need to buy cheaper houses. Isn't that situation preferable to the chaos we now have in the industry?

And here are the BONUS points I am awarding to 15 year mortgages:

A 15 year mortgage would flip you into an equity position far sooner than a 30 year mortgage even if the house never appreciates.
A 15 year mortgage has a lower interest rate.
A 15 year mortgage will cost you far less in interest over the life of the loan

Yet we loan officers sit back and take this response from our clients: "15 years? No thanks. I'll take the 30 year mortgage, make bigger payments, and pay if off sooner."

Yeah, right.

Written by Janet Guilbault, Mortgage Banker/Broker based out of the San Francisco Bay Area.

Why Recommending A DIRECT LENDER Could Make You Choke on Your Coffee

Janet Guilbault California Mortgage Banker/Broker — Fri, 21 Aug 2009 14:27:48 -0500

Why do Realtors like to recommend DIRECT LENDERS?

Could it be that somehow the lenders who are dumping foreclosures have brainwashed Realtors by insisting that anyone making an offer must be approved with a DIRECT LENDER?

Or is it because you believe that an approval from one of those BIG BOX banks is somehow safer, better, more familiar?

Now, please don't get me wrong. I work for a company that is a bank, and a bank is a direct lender. I can also BROKER a loan out to one of the BIG BOX banks.

But every time I do that, I regret it. I will tell you that the BIG BOX bank that is our biggest broker has gone from having 120 active mortgages with our company to less than 20 in the last six months.

I will leave it at that because it speaks volumes.

Lots of loans this year have come from people who took the advice of their Realtor and went to the BIG BOX bank. Typically they become so frustrated that someone finally says to them "Go find a broker".

Ironic, isn't it? I will then broker the loan to the same BIG BOX bank.

Or, I will do it "DIRECTLY" through my own bank, a smoother faster and more DIRECT way of closing a loan, where I retain far more control of the transaction.

Maybe, just maybe, some of the BIG BOX banks have spread themselves TOO THIN?

Imagine that we mortgage people sell coffee instead of money. You are just an average guy who wants some great coffee.

Everyone is different after all, that's why you have choices like this:

1. Go to the supermarket and pick up coffee, stand in line to buy it, take it home.

You don't expect the store to answer questions, to recommend the newest brand, or to provide information, or to have any sort of communication with you.

It is laughable to believe they would answer a phone call at all. But the supermarket is familiar, you know where it is, and you are there anyway, once or twice a week.

2. Go to the chain brand coffee shop next door that carries only their brand of coffee.

There, you have someone who will discuss every little detail of the coffee, and will let you sip samples.

But there is just that one brand. What if there is something better out there?

3. You go to a locally owned gourmet coffee shop right in your neighborhood.

Someone actually smiles at you when you walk in. The name brand is there, at the same price as the supermarket.

But there is a much bigger selection than you have ever seen, and a person there to answer questions, and recommend the best new blends.

The owner of the shop lives right there in your neighborhood. It is clear he really wants to keep you as a repeat client, because his success depends on repeat business.

He answers his phone. He publishes a coffee newsletter. He sends you free samples, discount coupons, and is even interested in what you do (in case he can send you a referral).

Shall we ignore this guy because he is not direct? Or should we celebrate this guy for giving the customer a choice about how he wants to buy his coffee?

It makes me wonder if there will ever come a day when we mortgage people will recommend to our own clients, "Go find a direct real estate agent".

What would that mean?

That buyers would go to a BIG BOX bank that also has a real estate department.

I remain hopeful that buyers will recognize the value of working with a local professional, who can show them all of their options, and who will answer the phone, even on weekends.

Because sometimes, you really, really NEED your caffine FIX.

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area.

Wordless Wednesday: The BLUES of Summer

Janet Guilbault California Mortgage Banker/Broker — Wed, 19 Aug 2009 12:55:30 -0500

The BLUEST thing in the garden

The Bluest thing on the lake (AKA husband's favorite toy)

Blue flip flops, blue sky, blue water. The perfect Friday night.

Seriously. Does Anyone Really Want to Look at Your Picture While They Decide Between Cheerios and Raisin Bran?

Janet Guilbault California Mortgage Banker/Broker — Fri, 14 Aug 2009 13:01:22 -0500

Question: Why would anyone want to advertise by putting their picture on a grocery cart? At least in my neck of the woods, no grocery cart is complete without a real estate agent on it.

Is there some association with buying a couple of pork chops for dinner and looking at the smiling mug of a real estate agent? And if there is, can it possibly be a GOOD association?

Will I refer this agent to my best friend (who is in the market for a house) just because they are staring at me while I decide which cereal to buy?

Does anyone besides me think this is embarrassing for our industry...sort of like those lawyers who we call "ambulance chasers"?

A few years ago my former company hired a marketing manager who was probably paid a gazillion dollars. He came to me and asked me to put an ad on the back of the grocery carts in the biggest supermarket in town.

"ICK!" said I, "I won't do it. How is that supposed to get me business?"

"You need to brand yourself, Janet"

What, am I just another brand at the store like Kellogg's corn flakes?

Or will they just think I AM a flake for my lame attempt to get a mortgage from a grocery shopper that doesn't even know me?

When I still said no, he went to my boss. As a "surprise" to me (for being one of the top producers), the boss paid for the ad.

Within a week, my picture was plastered on 300 grocery carts around town.

"Oh, how bad can it be?" I thought. I didn't want to seem ungrateful for a freebie from the company.

Right away, my friends began to mercilessly tease me about being "the supermarket queen".

When I was introduced to people they would look as if they vaguely knew me, then suddenly, they would light up. "Oh, you're the lady on the grocery carts!" (Not... "Oh, you are the Mortgage Mastermind when it comes to jumbo loans"...which would be REAL branding).

People who knew me would call me up while they were at the store, snickering. "Well, I'm rolling you around the store, Janet, but someone drew a mustache on your picture!" (Hysterical laughter followed).

In my earlier post from this week, I said the the age of "Me! Me! Me!" marketing is dead.

I say, the sooner, the better.

P. S. Not one new loan came to me as a result of the shopping cart ad. And people rolled me around in that supermarket for one torturous year, mustache and all.

Written by Janet Guilbault, Mortgage Banker/Broker based out of the San Francisco Bay Area

Wordless Wednesday: The REDS of SUMMER

Janet Guilbault California Mortgage Banker/Broker — Wed, 12 Aug 2009 10:20:28 -0500

The REDDEST thing in the GARDEN.

The REDDEST thing over at the LEASING COMPANY.

Two little REDHEADS at our FAMILY REUNION.

Inman Connect Take Away: The Social Media Explosion! You Gotta Be One of Their Peeps If You Want to Be Their Agent

Janet Guilbault California Mortgage Banker/Broker — Tue, 11 Aug 2009 10:53:08 -0500

If you are a regular reader of Mortgage Advisor, you know I actually WON my ticket to Inman Connect from the Real Estate Tomato.

To Jim Cronin, and the Tomato Crew, thank you.

I say this even if Jim's blogging presentation at Inman was waaaaay over my head (Mike Mueller, you warned me! I was too damn headstong to believe you).

Luckily, Jim Cronin is good-looking enough that what he says does not need to be on my level. LOL

I got 3 glorious days away from the mortgage madness to hobnob in San Francisco with the elite "Who's Who" of the real estate, blogging, and technology world, not to mention the writers of Inman News.

As a blogger and real estate geek, who is challenged by technology on a daily basis, I played sponge last week instead of mortgage maker.

I soaked it all in and had a blast. It was intense. It was amazing. It was enlightening in a way that cannot be explained.

Besides getting hugged and shushed by Brad Andersohn as I crashed through the door of a workshop, here is what I took away from this amazing gathering of brilliant minds: Hang on tight because a revolution is happening out there in the real estate universe.

If information is a huge river, then what once slowly trickled has been unleashed as a wild raging torrent, thanks to social networking sites. Twitter and Facebook are re-shaping information streams. Forever.

Yes, you could drown if you don't pay attention to this one important thing:

We no longer control the information, the information controls us.

The FLOW has been reversed. The customers are controlling the flow of information via Twitter and social networking. They are making decisions using information from their friends, followers, and their online sphere of influence.

They are SHARING information and compiling information at breakneck speed. They will decide among themselves who will win and who will lose in this crazy game of real estate.

OLD SCHOOL: Future home buyers go to Google, put in some search words, somehow find your blog, which will point them to your website, then (maybe) they will try to find you on Facebook.

NEW AGE: Customers follow you on Twitter, and/or check you out on Facebook, then find your blog/website as a result. (the flow has been reversed)

Future home buyers will know more about YOU than they ever have before. What they know will determine who they choose as their agent.

It won't be because you call yourself an expert, because they don't care! It won't be because of your designations, or because of your picture plastered everywhere. It won't even be because Aunt Martha used you when she bought her house 5 years ago.

The age of a real estate agent thinking "ME, ME, ME...ITS ALL ABOUT ME" is all but dead. All that matters is what their other peeps think.

You need to be one of those peeps.

Future homebuyers do not need you to price homes, to find homes, or to research neighborhoods. They've already done that, and their world is exploding with new tools to help them (weakening the role of the listing agent, in my opinion).

They will soon go to a site that will reveal your statistics as an agent. They will take a virtual walk through the neighborhood. They will hold their phone up to the house and will be able to see complete public records, and MLS information.

What does this mean? The river no longer flows to the sea. It is rushing inland and will forever change the landscape of our industry.

Unless you are out there giving the consumer what they really want, education, engagement, and a true homebuying experience, you could soon be washed up on the side of the river.

And left out to dry.

Written By Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

If Closing a Real Estate Transaction is Like "The Bachelor" Who Gets the ROSE?

Janet Guilbault California Mortgage Banker/Broker — Tue, 04 Aug 2009 13:10:16 -0500

While aimlessly cruising through the blogosphere the other day, I came across a post written on an outside blog discussing ActiveRain mortgage people.

Naturally, I was more than a little interested.

It was this comment that got me thinking about the uneasy relationship that exists between Realtors and Mortgage people:

"I have found AR increasingly mortgage officer “un-friendly” over the last few months."

"The AR website (in my view) greatly favors the views and cause of the Realtors vs mortgage industry. I have found it to be more and more biased and weighted on the realtor’s behalf."

(I am not linking to this post because I want to keep my own post on course).

Why do mortgage people and Realtors believe they are opponents instead of teammates? I have never understood this, and I have played on both sides. Do we each have our own "views and causes" that conflict?

What are they?

Because I don't get it.

WINNING is not who gets to the closing table first (Like the Kentucky Derby)

WINNING is not who gets to keep the client (like The Bachelor).

WINNING is not who does it best (like Dancing With the Stars).

WINNING is not about who gets the money (like Who Wants to Be a Millionaire)

WINNING is not about one side getting the glory, and a chance to go to the Superbowl (like an NFL game)

Isn't our mutual cause (or goal) to close the transaction on time with a happy client?

Don't we BOTH win when this happens?

And aren't we on the same team?

If there is a single rose lying on the closing table, it isn't there waiting for the Realtor to hand to the mortgage person.

Let's just let the client take it home.

You and I can just shake hands.

That way, we can both go home, smelling like a rose.

And knowing we won.

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

Connor Estates At Lake Tulloch: When A Second Home is Second to None

Janet Guilbault California Mortgage Banker/Broker — Mon, 03 Aug 2009 11:56:52 -0500

The view from my house on the shores of Lake Tulloch includes a panoramic view of Connor Estates, probably one of the most beautiful collections of waterfront homes in California.

First time guests stepping out on my deck look out across the lake and gasp, "Those.....aren't really......VACATION houses.....are they?"

Well, quite actually, yes, they are.

They are million dollar plus houses that people do not live in full time.

With an amazing location only 2 hours from most places in the Bay Area, owning a waterfront house at Lake Tulloch, behind the gates of Connor Estates, just might be the ultimate antidote for the high stress lifestyle in the Bay Area.

After a hectic work week, you can arrive just in time to watch the sun set behind the table top mountain, and have a glass of wine as the moon rises over the lake.

Another fun weekend awaits.

Who says your primary residence needs to be bigger and better than your second home? For many of my Bay Area mortgage clients, their "trophy home" sits on Lake Tulloch. Their primary home may be far less grand.

And that's okay.

Maybe they plan to retire to their waterfront home. Maybe they see their second home as a way to bait children and guests to visit. Maybe they just prioritize their weekends higher than their work weeks?

Think they're on to something?

I do. Check out my view as the sun set over the lake last Friday night.

Want to know more about owning a waterfront property on Lake Tulloch? The home pictured in this post is currently on the market.

Would you like to discuss mortgage options for buying a first or second home at Lake Tulloch? I have great rates for JUMBO LOANS on SECOND HOMES. Yes, you can get a FIXED RATE!

Do you need a referral to a Realtor that can show you waterfront homes at Lake Tulloch?

I am Janet Guilbault, your Lake Tulloch Mortgage Specialist. I own a Lake Tulloch waterfront property myself, and have had the privilege of helping people just like you realize their dream of owning a piece of waterfront paradise. Call, text, or e-mail me today. My contact information appears below.

Wordless Wednesday: My Zucchini Is Bigger Than Your Zucchini (And Why is That So Funny?)

Janet Guilbault California Mortgage Banker/Broker — Wed, 29 Jul 2009 10:42:15 -0500

This 12 pound zucchini monster is shown next to my blackberry for a size comparison.

Garden trophy?

For some reason, my friends find the shape of this zucchini to be extremely funny.

Have We Kicked Mortgage Brokers to the Curb Too Soon? Why Mortgage Brokers Will Survive

Janet Guilbault California Mortgage Banker/Broker — Tue, 28 Jul 2009 23:20:36 -0500

Today I got an e-mail asking me this: Are mortgage brokers going to survive this economic meltdown?

My answer is YES, and it comes from my experience as an AUTO BROKER.

Over the last 25 years , franchised auto dealerships here in California have done everything in their power to get rid of auto brokers.

Because dealers held all the power (money along with an organized lobby) and auto brokers were small, independent business people, guess who got the most attention from the lawmakers in Sacramento?

Politician thinking: "Money from the big guys? Or protect consumer choices?" Hmmmmm...what should any self respecting politician do?

Since the "real" agenda of the dealers was to put auto brokers at a disadvantage, they had to prove this point to lawmakers: auto brokers are scumbags who do not deserve to sell cars to the public.

So every car deal gone bad was blamed on the fact an auto broker was involved. Every little thing wrong with the car was because it wasn't delivered at the dealership. The media chimed in...because that's what media does.

And then the inevitable: "Broker laws" were enacted. Stupid, idiotic rules that made it harder for people to do business with auto brokers.

After all, the public needed to be "protected" from auto brokers. And you know how "protection" comes with another layer of cost. (think HVCC).

In spite of everything, consumers continued to LIKE buying and leasing cars without setting foot in the dealership.

Or should I re-phrase this? People continued to HATE buying cars from dealers, and saw brokers as a great alternative.

Surprise! Auto brokers continued to thrive, even though laws and regulations rained down from Sacramento.

My position was always this: If there was not a market for auto brokers, there would not BE any auto brokers. Never underestimate the sheer power of pure market demand for a product or a service. Even laws can't kill it.

WHY MORTGAGE BROKERS WILL NOT BECOME EXTINCT

When a dealership would say this to me "We don't do business with brokers", I used to say this: "Too bad, because you don't know any other lady that buys 10 cars a month." Yep, nine times out of ten that single sentence was just too tempting and I got the car I wanted.

MORTGAGE BROKERS have been blamed, battered, bruised, and kicked to the curb by the very banks that used to woo them. The real estate industry has all but written mortgage brokers off. Banks, with all of their taxpayer money, must feel pretty smug about the fact mortgage brokers have been all but driven out of business.

But are we writing off mortgage brokers too soon? What about this?

In spite of everything, people continue to LIKE getting a mortgage without having to step foot in a bank. They complain about the impersonal service of banks, the fact banks are closed on weekends, and don't answer their phones on the weekdays, anyway.
The line between a bank saying "We don't do business with brokers" and "we need brokers to bring us more loans" is very, very fine.

So fine, in fact, that I believe it could be easily broken. Here's why:

Banks could not assemble a workforce that is more skilled than the legions of mortgage brokers left in the business.
Those same mortgage brokers are sitting on databases FAT with great clients who are loyal to the BROKER, not to the BANK who holds their loan.
One little uptick in the real estate market is going to leave most of the big banks hopelessly understaffed when it comes to mortgage people.

Written by Janet Guilbault, Mortgage Banker/Broker based out of the San Francisco Bay Area

A Once In a Lifetime Opportunity to Own Lake Tulloch Waterfront Property Is Here Today, Gone Tomorrow

Janet Guilbault California Mortgage Banker/Broker — Thu, 23 Jul 2009 13:32:06 -0500

There are are few opportunities left anywhere in California to live right on a lake, but now, thanks to a real estate market focused away from second homes, a rare opportunity exists to own a Lake Tulloch waterfront property.

If you ever wanted to live on a lake, don't let this opportunity disappear.

The cool clear pristine waters of Lake Tulloch offer Californians a rare chance to own water front property complete with a private boat dock.

Combine this with a location in the quaint gold rush town of Copperopolis, (a mere 2 hours from the Bay Area), and you will find the perfect location for a second home, a retirement home, or simply a magical place to live full time.

I know because I have owned a waterfront property on the shores of Lake Tulloch for a decade.

To walk down to your own boat dock, cruise the lake, do a little wakeboarding, watch the wildlife, and swim through the crystal clean water whenever you want, is something close to heaven on earth.

I confess my favorite part of owning a waterfront property is simply sitting on the deck, looking over Lake Tulloch, with the golden Sierra foothills as the backdrop.

WHY THIS IS THE BEST TIME TO ACQUIRE WATERFRONT PROPERTY AT LAKE TULLOCH

The current economic climate has exposed once in a lifetime opportunities to own your own waterfront paradise. Have you ever wondered exactly HOW a family came to own something as special as a house on a lake? Many of them dreamed for years (just like you?) then took the plunge when they recognized an opportunity that might never pass their way again.

Why do I believe the timing is near perfect to acquire a Lake Tulloch waterfront home?

Prices have fallen dramatically, bringing the actual cost of ownership down by hundreds of thousands of dollars.
There is a good supply of waterfront homes currently for sale surrounding Lake Tulloch. Just a few years back, only a few homes periodically came available for sale. In times of economic hardship, more second homes than ever become available for sale.
Mortgages rates have fallen. Yes, there are fixed rate mortgages for second homes, AND for jumbo loans, and they will probably not be this low again.
They aren't making any more waterfront properties. This makes your chances for appreciation excellent in my opinion.
Lake Tulloch is still somewhat undiscovered. That will not be the case for long. A world premier golf course, a new Town Square, and plans to build upscale homes in the area will attract a wave of Bay Area baby boomers ready to retire.
Owning a second home has specific TAX BENEFITS. Buying a second home when prices are this low will lock in lower property taxes. With higher taxes in the future for all Californians, buying a property at Lake Tulloch could benefit you tax-wise.
Here is a strategy to consider: Buy your second home at Lake Tulloch with a mortgage. Sell your main home when you retire. With your equity, pay off the loan on your second home and be mortgage free while you live on the water and enjoy all the amenities of Lake Tulloch.

This is the first in a series of articles about owning real estate at Lake Tulloch, located in the town of Copperopolis, in the California foothills of Calaveras County.

Want to know more about owning a waterfront property on Lake Tulloch?

Would you like to discuss mortgage options for buying a first or second home at Lake Tulloch?

Do you need a referral to a Realtor that can show you waterfront homes at Lake Tulloch?