Delavan's Home Loan Blog

Are Wisconsin FHA mortgages only for first time home buyers? - Travis Egan, Lender, Lake Geneva Real Estate

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Sat, 21 Feb 2009 20:37:44 -0600

This client and I were talking the other day when he asks this question. Now I've been doing home mortgages for nearly 15 years and I thought I did a good job explaining this, but sometimes reality hits you right in the face.

To read the entire article click below:

FHA mortgages for first time buyers.

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For all your Lake Geneva Real Estate needs, contact Walworth State Bank today @ 262.728.4203 or visit us on our website at www.walworthbank.com! If you are in need of a Wisconsin FHA mortgage or any other lending questions visit us at www.TravisEgan.com.

A New Home in Time for Valentine's Day - Travis Egan, Lender, Lake Geneva Real Estate

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Sun, 15 Feb 2009 13:27:16 -0600

I wanted to take a moment and reflect about a wonderful experience that occured just last week. There are times in this business when we are reminded of why we sacrifice the way we do. I also want to make sure and express my appreciation for a particular real estate agent for her exceptional customer service and compassion.

It all started last Tuesday evening when I received a call from a client who was distraught. Let me give you a little back story here. I recently switched to a new bank. This client originally started with me at my previous employer. I informed the clients before we began the process that I may accept an offer from another competing institution and I wanted them to feel comfortable that I may not be there with them to the end. We discussed it and they decided to proceed anyway. So back to the call. Apparently, the lender who took over this file failed to live up to her commitments. She assured them that no matter what, no matter what, they would get this loan done. Now 12 hours before closing the clients were informed that they had no financing and none would be available to them. To be fair here, she was handed the file about 70% complete. She was in a difficult position from the start, but she made promises that ultimately would cause great strain and discomfort for the clients. A lender not delivering on a promise they communicated, does this sound familiar my real estate brethren?

To say the clients were distraught is an understatement. This was the first of three transactions. All parties would be left in the lurch. The client's Realtor went above and beyond the call of duty. She performed in a manner that would make any Realtor in our business proud. She advocated, she informed, she fought, she did it all with a passion and desire that made me proud to be in this business. Her name is Shari Rauland Mohr of The Rauland Agency in Walworth, Wisconsin. I have had the pleasure to work with her in the past, but now I saw what a true real estate professional looks like. I won't carry on here, but suffice it to say through her diligent efforts we were able to get these clients in their dream home that day. Many people deserve kudos for their efforts that day, but Shari deserves a hearty "congratulations." I hope you'll join me in thanking her for keeping what we do in perspective. Whether we're a Realtor, a lender, a title company, an inspector, or appraiser we perform a vital and necessary role in helping people achieve their piece of the "American Dream" and I for one appreciate being reminded of that from time to time.

These clients spent their first married Valentine's Day together in their new home and I for one am glad I had a chance to be a part of it.

Travis Egan

Lender, Lake Geneva Real Estate

Walworth State Bank

(262) 728-4203 - Office

(262) 745-5055 - Cell

Lower Rates, But Will Buyers Come Out to Play? - Travis Egan, Lender, Lake Geneva Real Estate

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Thu, 04 Dec 2008 14:33:38 -0600

I read an article today in the Washington Post that suggested the Treasury Department was working on a plan that would allow lenders to give mortgages at 4.5%. Now in fairness it sounds like they're still working on the details of the plan, but are interest rates the reason people aren't buying homes?

It's my belief the reason people aren't buying homes is a simple matter of jobs. Like will they have one in the coming months? None of my clients ever went into a home, hoping they would lose it in a foreclosure. Most clients think long and hard before buying a home. My realtor brethren will attest to this. They scrutinize everything. This is a good thing. The thing that will stop buyers dead in their tracks is the fear of losing their jobs. The last thing they want is to move in to their new home and in a short period of time have to move again because one or all of them lost their job.

Rates could go to zero percent on Wisconsin FHA mortgages. Home prices could be half of their tax value and people will not budge if they fear they will lose their jobs. When I talk with my clients their number one fear is losing their job. Interest rates and property values are much smaller concerns for them. They would rather rent until they know they weather the current financial storm ripping through this country.

I fear Secretary Paulson and his teams are once again looking for a simple answer to the current economic problems and I'm not sure this is it.

Travis Egan

Lender, Lake Geneva Real Estate

Are Wisconsin FHA Loans the "new" Subprime Loans

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Wed, 03 Dec 2008 20:55:31 -0600

I am hearing this very familiar catchphrase repeatedly. In fact, I recently read an article in Business Week where the author suggests just that. There are many problems with this analogy. As a lender who has spent the better part of my 14 years helping homebuyers obtain FHA loans in Wisconsin I assure you there are some enormous differences. FHA mortgages have helped people buy homes in Lake Geneva, Delavan, Elkhorn, and all of Walworth County for many decades.

Here are a few for you to consider Wisconsin FHA Loans.

Travis Egan Asst Vice President Walworth State Bank 1221 South Shore Dr Delavan, Wisconsin, 53115 US	Work: 262-728-4203 Mobile: 262-745-5055 tegan@walworthbank.com www.TravisEgan.com
Lender, Lake Geneva Real Estate, Delavan Real Estate
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What's Happening in Lake Geneva Real Estate Right Now!!!

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Mon, 01 Dec 2008 22:11:48 -0600

I was visiting the website of one of Lake Geneva's top Realtors, Bob Webster of Keefe Real Estate, when I stumbled upon his podcast. I was impressed with the insights he shared. I think you will be impressed when you take the couple of minutes to listen to it. He knows his stuff.

One of the things he talks about is what an amazing time it is to purchase a home in this market. Prices have fallen and rates are at levels we haven't seen in years. It's worth the few minutes.

Here it is: Lake Geneva Real Estate Podcast

Travis Egan Assistant Vice President Walworth State Bank 1221 South Shore Dr Delavan, Wisconsin, 53115 US	Work: 262-728-4203 Mobile: 262-745-5055 tegan@walworthbank.com www.TravisEgan.com
Lender, Lake Geneva Real Estate

Are You Scaring Your Kids About the Economy?

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Mon, 27 Oct 2008 14:21:24 -0500

I know its Halloween, but have some of you lost your minds? Are you intentionally scaring your children about the doom of our economy?

I read an article by Liz Pulliam Weston where she makes it clear some of us are doing just that. It made me pause and ask myself if I'm in the same boat. I catch myself on occasion speaking frankly about what's going on in the world and she brings up some valid points. I know this; I will pay a lot better attention to it now.

Take a look and tell me what you think. Are you doing this?

Travis Egan

Mortgage Planner, Lake Geneva Real Estate

35 cent Gas? It happened. Check this out.

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Wed, 15 Oct 2008 12:08:17 -0500

Wisconsin Rapids, Wisconsin - Sure, gas prices have come down lately. But to 34.9 cents a gallon?

That's what Kelly Joosten and dozens of other motorists paid at a Citgo station Monday. The sign advertised $3.43 for a gallon of premium fuel, but the pump cost read $0.349 a gallon.

"That was amazing," said Joosten, who normally spends about $100 to fill up her 1998 Ford Expedition.

Joosten proudly showed off her receipt for 25.36 gallons at $8.85. She said she saw other motorists filling gas cans, too, at the discounted price.

Station owner JP Raval says the attendant on duty couldn't figure out why the station was suddenly so busy.

Raval estimated 30 to 40 customers fueled up at the incorrect price - between 200 and 300 gallons worth - for about 90 minutes.

"People kept coming, so fast," Raval said. "Everything was crowded; it was like a fairground."

Travis Egan

Delavan, Wisconsin

It's Official...GM in Janesville, Wisconsin announces it's plans.

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Mon, 13 Oct 2008 13:39:45 -0500

After months of speculation, General Motors has finally announced its plans for the production facility in Janesville, Wisconsin.

Local General Motors' employees learned officially this morning that production of full-size sport utility vehicles will end on Dec. 23.

The work stoppage will affect approximately 1,150 hourly & 130 salaried employees at GM, plus hundreds more at local companies that supply the auto plant.

GM announced in June that it would end SUV production in Janesville by the end of 2010 at the latest, but plummeting sales for the big trucks prompted the automaker to accelerate the closing of the Janesville plant.

Travis Egan

Delavan, Wisconsin

Delavan Lake Get-a-Way

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Wed, 24 Sep 2008 15:46:03 -0500

Delavan Lake Get-A-Way

Address: 1426 Del Oaks
City: Delavan
State: WI
Zip: 53115
Price: $289,000
Beds: 5
Baths: 2
Floors: 2

Garage Size: 0
Lot Size: .8 acres
Annual Property Tax: 4,483
HB #: 1443999

Full Description: Let's make sure we understand this folks, the house keeps out water and keeps in heat (somewhat). It ain't about the house its about almost an acre of private wooded lot, closest neighbor you couldn't hit with a rock, makes you feel like you're in the great Nort' woods. It's about your share of the 100 foot lakefront park (hello!!! private) and your boat slip. This is a getaway waiting to happen.

Property Features
Cable/Satellite TV
Carpeted Floors
Disposal
Gas Range
Hardwood Floors
Patio/Deck
Waterfront

Boating
Playground/Park

Listed by: Tom Ross (Realtor Listing)

Realtor
Homestead Realty of Lake Geneva
520 Broad Street
Lake Geneva, WI 53147
Phone: 262-248-4747
Mobile: 262-949-2989
Fax: 262-248-7776

Email Me Now

Travis Egan
Mortgage Planner
Community Bank CBD
820 E Geneva St
Delavan, WI 53115

Phone: 262-740-7751
Mobile: 262-745-5055
Fax: 262-740-7283
My Web Site: http://communitybankcbd.com
My Blog: http;//www.Travis Egan.com
Email Me Now

$700 Billion Bailout – Why are we in such a rush?

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Tue, 23 Sep 2008 11:41:22 -0500

I realize I'm no Harvard MBA or great economist, but this Wall Street bailout is beginning to make me feel a little uneasy. First of all, when anyone attempts to rush something by me I get a very discomforting feeling. Congress by their very own doing has a history of rushing things by the American people.

Do we really trust Congress to make the correct decision?
Isn't it Congresses job to slow the process down, to be the check and balance to the executive branch?
What if they're wrong & what can we do to fix it?

Henry Paulson, the Secretary of the Treasury, was the former chairman of Goldman Sachs, a Wall Street executive. Now he's looking to bailout his cronies. So we're to believe that his past has nothing to do with his current decisions.

What has Secretary Paulson been correct about in the last 18 months?
Why are we in such a rush to accept that he's the only voice that can save our economy?
Should we trust a person whose entire professional life has been on Wall Street, the very people most likely to benefit from our tax dollars?

I'm being told that this is good for the economy. I always ask at what expense? I don't just mean the $700 billion, but to our society as a whole. I realize there is genuine concern over the direction of the economy, but shouldn't we be more skeptical?

Look Here Comes Big Brother to Save Your Sorry Behind...

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Wed, 17 Sep 2008 13:10:57 -0500

I don't know about you, but I'm a bit tired of our government bailing out all these investment banks. What happened to letting the market "fix" itself. If we are, as we profess to be, a free market society, then why in the hell is Uncle Sam constantly bailing out these failing companies? I've heard the whole "if we fail to help them then there will be a run on banks and cause issues with the money supply," argument. But these aren't depository banks. These are investment banks. Do our elected officials think we're all a bunch of idiots? They must. We know the difference. The greedy bastards that couldn't wait to throw money at anyone with a pulse to buy a home, all in the name of better interest rate returns are now being forced to answer for their decisions. They gambled and lost. If I go to Las Vegas and lose at the Bellagio am I then able to call Ben Bernanke and ask for a bail out? Actually, we're all losing. Isn't AIG an insurance company? I mean c'mon... Am I the only one who's had enough? We wonder why our collective taxes keep rising. We wonder why so many people look to the government to save their behinds. All we have to do is look at the headlines. Apparently, if you donate millions or billions of dollars to political parties than you move up to being "bail out" worthy. Let the markets do their job. Let the chips fall where they may. Old venerable institutions like Lehman Brothers, Merrill Lynch, AIG, or any other company who chose to purchase sub-prime mortgages should reap what they sow. You collateralize junk mortgages and never expect to pay for that then you suffer the consequences of watching the company you run vanish. I try to teach my children that there are consequences for poor decisions. Apparently, that's only true if you're not a multinational, company worth billions of dollars. Otherwise big brother will ride in and save the day.

My hard lesson learned...

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Thu, 11 Sep 2008 11:13:52 -0500

This morning while getting dressed something strange happened to me. I found myself somehow lost in thought of that day 7 years ago. I remember riding in the car with my boss discussing the new strategies we were going to use to help our real estate partners grow their businesses. We never rode together, but this was a special day. We were both so excited to hit the ground running. We couldn't wait to get to the office and fire the rest of the team up. My phone kept ringing. My then wife, called and called, and called. What could be so damn important on this glorious day? Finally after the 7^th or 8^th call I picked up. I was distressed by this interruption. Then she said, "we're under attack." I'll never forget those words. Attack? From what? From whom? What the hell is she talking about. I made her repeat herself. "The World Trade Center in New York, right." "Two planes hijacked, right." "Flown into them." What? None of it made any sense to me. Then it hit me. I wasn't prepared for this. My wife, my two boys were an hour away. If we under attack, who was it? While were talking she says that they hit the pentagon as well. My supervisor at the time and I are both Marines our collective thoughts went to protect our families. I told her to get my oldest boy out of school, get as much cash as she could, go to the store and buy nonperishable food items, and fill the tub up with water. I realize what a spaz I was now, but at that moment I wasn't sure what to do. I was now stuck on some highway in southern Wisconsin on my way to Madison. I felt a million miles away from home. We made it to the office to watch the replays and the towers fall. We sent our staff home. I can't remember the last time I cried that wasn't a funeral. That day I cried. I was angry. I thought I would reenlist. I would go get the bastards that did this. Then it happened. When I got home I was fully prepared to go back into the Corps that I love. I wasn't going to allow anything to dissuade me. Kids!!! Who knew? My 6 month old son crawled to me that day for the first time and I realized this was going to be fight someone else would have to fight. You see I paid my dues once in places like Panama and Bosnia. My wife reminded me that my sons needed me there. Boy some lessons are harder to learn than others. On this day I remember with great empathy and sadness of those that paid the ultimate price. I can't even express in words how ultimately proud and grateful for the sacrifice of the brave men and women who fight for our right to work and live in this amazing country. I am sad, reflective, and grateful on this day.

Fannie, Freddie Takeover Jolts Preferred Stock Market

Travis Egan - Lender, Lake Geneva Real Estate (Walworth State Bank) — Wed, 10 Sep 2008 12:34:39 -0500

By: Caroline Salas, Bloomberg.com

Sept. 10 (Bloomberg) -- Treasury Secretary Henry Paulson's takeover of Fannie Mae and Freddie Mac is roiling the market for preferred securities.

Prices of fixed-rate preferred stock fell an average of 9 cents to 71.5 cents on the dollar this week, according to Merrill Lynch & Co. index data, the biggest two-day drop in more than a decade. The 11 percent decline compares with a 1.4 percent drop in the Standard & Poor's 500 index over the same time.

In putting Fannie and Freddie in conservatorship, Paulson scrapped dividends on the mortgage-finance companies' equity securities and said the U.S. would buy as much as $200 billion of preferred stock ranking ahead of existing issues. Investors are more hesitant to invest in similar securities of other financial institutions on concern that Paulson set a precedent for issuers. Unlike common stock, preferreds typically carry fixed dividends.

Paulson's "actions have damaged the preferred market," said Thomas Hayden, the investment strategist for Liberty Bankers Life Insurance in Dallas. "Somebody is going to be looking at an issue of Fannie or Freddie preferred shares that were rated AA up until a few months ago. If that's not money good then what about the small regional bank in some part of the country?"

Hayden, whose $1.5 billion fixed-income portfolio contains preferred shares of Fannie and Freddie, said he's "not interested" in buying any more preferred securities.

Rising Costs

The market's tumble is making it more expensive for banks and brokers trying to raise fresh capital after taking $506 billion of write-downs and losses on the collapse of the subprime- mortgage market.

Sales of preferred securities in the U.S. have risen 48 percent this year to about $44 billion from more than $30 billion in the same period of 2007, according to data compiled by Bloomberg. The average yield as measured by the Merrill index has risen to 10.1 percent from 8.8 percent on Sept. 5 and 7.9 percent at the end of last year.

The takeover was "unambiguously bad" for preferred investors and "likely set a precedent for any future rescue transactions," Kathleen Shanley, an analyst at bond research firm Gimme Credit LLC in Chicago, wrote in a Sept. 7 report.

Preferred shares of Washington-based Fannie and Freddie of McLean, Virginia were cut to the second-lowest rating by Standard & Poor's and Moody's Investors Service on Sept. 7. The grades were slashed 11 levels by S&P to C and 10 rankings to Ca by Moody's. Moody's rated their preferred stock Aa3, the fourth- highest grade, until July.

Biggest Losers

Freddie preferred shares have lost 83 percent the past two days, while Fannie's have declined 80 percent, the biggest losers in the Merrill index. The two companies account for about $24 billion of the $190 billion par amount in the index. Forty of the top 50 issuers have declined in the last two days.

The declines are particularly stinging for Fannie and Freddie investors because the companies have sold $20.4 billion of the preferred securities since November.

Citigroup Inc., the fourth-biggest U.S. bank by market value, lost $450 million this quarter on investments in Fannie and Freddie, including write-downs on preferred securities, the New-York based bank said in a filing today. E*Trade Financial Corp. will have a pretax loss of $150 million this quarter from selling its shares, the New York-based company said in a filing.

Paulson tried to calm preferred stock investors when he announced the rescue of the government-sponsored enterprises and said the takeover shouldn't have negative implications for the wider market.

Lehman, Merrill

"Preferred stock investors should recognize that the GSEs are unlike any other financial institutions and consequently GSE preferred stocks are not a good proxy for financial institution preferred stock more broadly," Paulson said in a Sept. 7 statement. "The broader market for preferred stock issuance should continue to remain available for well-capitalized institutions."

Lehman Brothers Holdings Inc. is down 42 percent, while Merrill has tumbled 16 percent.

"In the primary market it's going to be much more difficult for financials across the board," Hayden said. "If Lehman Brothers thought they needed to go to the market and had any chance at all of issuing preferred stock to raise capital, it is now three times more difficult than it was last Friday."

Mark Lane, a spokesman for Lehman, and Danielle Robinson, a spokeswoman for Merrill, declined to comment. Lehman and Merrill are both based in New York.

Investors will be "gun-shy" about buying preferred shares, said Thomas Houghton, who manages $2 billion of corporate bonds at Advantus Capital Management in St. Paul, Minnesota.

"There are a number of financial institutions that are experiencing distress right now, so the dividend on the common and the preferred share are going to be the first to go," he said.

To contact the reporter on this story: Caroline Salas in New York at csalas1@bloomberg.net