Scott Skinner's Blog

New Years Resolution to diet ??? Here is a list of calories you burn

Scott Skinner (Liberty One Lending) — Fri, 02 Jan 2009 14:19:19 -0800

Most people list dieting as the #1 on new years resolution. I think everyone, no matter how old , how thin, or how fit would like to cut a few pounds.

Now is the time of year that you want to kick that calorie burn into high gear.

Here is a great list I found that an expert put together as a list of various activities to give you an idea of how each affects your burn.

HIGH BURN ACTIVITIES	CALS BURNED IN 30 MIN.
aerobics: low impact	170
aerobics: high impact	238
elliptical trainer: general	213
calisthenics: vigorous, jumping jacks, push-ups, sit-ups, pullups	272
weight lifting: light/moderate	108
weight lifting: vigorous	207
running: 6.7 mph (9 min/mile)	374
walk: 4 mph (15 min/mi)	170
stretching: mild, hatha yoga	85
ice skating: moderate intensity	238
sledding, toboggan, bobsled	238
skiing/snowboarding: downhill, moderate effort	204
operating a snow blower: walking	153
shoveling snow: by hand	238
vacuuming	119
cleaning house: general, light	87
decorating Christmas tree	85
food shopping: with cart	78
christmas shopping	78
playing w/kids: moderate effort	153
baking and food preparation	136
Unloading car	102

LOW BURN ACTIVITIES	CALS BURNED IN 30 MIN.
reading: sitting	44
standing in line: light, holding items	68
sitting, watching TV	34
writing Christmas cards	61
wrapping gifts	51
socializing, standing	61
playing cards	51

Lower Home Prices - More Home Sales

Scott Skinner (Liberty One Lending) — Mon, 29 Dec 2008 19:16:13 -0800

Sales have picked up for several reasons. Another big reason is Lower home prices -

Lower home prices , yes, prices are going down, especially here in the west, and specifically, Phoenix, Scottsdale, Fountain Hills and other East Valley cities where we saw one of the biggest national drop. Inventories remain high.

However, lower prices are creating buying opportunities which we haven't seen in several years

Lower Rates - Better Home Sales

Scott Skinner (Liberty One Lending) — Mon, 29 Dec 2008 19:14:47 -0800

Sales have picked up for several reasons. One big reason, is the easing of interest rates -

simple. Lower interest rates allow one to buy the same home with a more affordable monthly payment.

Although, credit is a little more difficult to come by. Stricter lending terms, larger down payment requirements make the likelihood of future foreclosures less and a prolonged housing recession less likely

ReFinance Applications Up! Way UP!!

Scott Skinner (Liberty One Lending) — Wed, 24 Dec 2008 09:42:47 -0800

Wow, Mortgage applications surged to the highest level in over five years!!

This has to be good news. People either want to buy. Which we need. Or they are trying to stop foreclosures by refinancing. Which we need.

According to the MBA , potential borrowers came out in droves to refinance as government interventions helped push interest rates down to record lows, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended December 19 soared 48.0 percent to 1,245.4, the highest reading since the week ended July 18, 2003, when it reached 1,284.3.

Is a bailout Anti-American

Scott Skinner (Liberty One Lending) — Wed, 24 Dec 2008 09:37:07 -0800

Think about it like this.

If you could go to Las Vegas, wager and win keep you profits would you? If you do not win, the house would come and give your money back in the form of a low interest loan and say ‘try again'. Now, with this new found money, you have a second chance. If this second change is successful you keep all the profits above and beyond these low interest loans. If this second change does not prove successful, you don't have to pay the money back.

This bailout of those who are not rewarded for taking risk is completely opposite to what built our economy which rewards for risk. And of course, that risk comes at a price if you don't succeed.

What makes matters worse is that if the program does not prove successful and the banks cannot right the ship, the owner of this $700 Billion in bad debt and worthless loans are the American Taxpayer. Most Americans would probably not make this investment the Government is making for us.

after prior stock market crashes home sales usually rebounded within a few months.

Scott Skinner (Liberty One Lending) — Tue, 23 Dec 2008 13:42:16 -0800

There was some less than positive news earlier.

The NAR reported Sales of existing homes plunged far more than expected last month as buyers recoiled from October's financial wreckage on Wall Street. The median sales price fell by the largest amount on record.

The National Association of Realtors said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.

However, there was some positive or optimistic insight into the data.

Lawrence Yun, the normally upbeat chief economist of the Realtors group, noted that after prior stock market crashes home sales usually rebounded within a few months.

Keep your fingers crossed!!

Are we headed for Zero % (ZIRP)

Scott Skinner (Liberty One Lending) — Mon, 22 Dec 2008 19:41:42 -0800

Are we headed to 0 % or ZIRP (Zero interest rate policy?)

Not since the 1930's, (after the Great Depression) have we had ZIRP monetary policy. However, I am hearing it more and more... and it may not be that far-fetched, since we have seen rates drop 2 points about 2 months, , another 2 ¼ points over the year is not much and would get us to 0%.

What is the net effect ?? we need lower interest rates (maybe not ZIRP) to stimulate the economy, housing and hopefully, get mortgage interest rates to move lower to stimulate the economy' .

However, its a Catch-22, as we have to be careful not to create another Real Estate Bubble with people buying more home than they can afford with these lower rates.

Hope For Homeowners - a breakdown and purpose

Scott Skinner (Liberty One Lending) — Mon, 22 Dec 2008 19:40:15 -0800

Here is a breakdown and purpose of some of the legislation in the package titled the Hope for Homeowners Act

HOPE for Homeowners Act would create a new initiative within the Federal Housing Administration to refinance mortgages of distressed home owners.
funding for foreclosure prevention counseling
emergency appropriation $4 billion -Community Development program (CDBG) providing cities that have been most adversely affected by the foreclosure crisis desperately need some assistance to get foreclosed and abandoned properties back into the hands of qualified homeowners.
bankruptcy provision could help more than 600,000 homeowners by allowing them to modify their mortgages in bankruptcy.
improve disclosures to borrowers earlier in the lending process
modernize the Federal Housing Administration (FHA).
tax credit to buyers of homes in or near foreclosure
seller breaks for short-sales tax treatment
tax credits to builders to prevent bankruptcy

100% Equity Lease option Programs! Are they legal?

Scott Skinner (Liberty One Lending) — Sun, 21 Dec 2008 10:52:32 -0800

This 100% equity program allows people who want to buy to enter into an option agreement to purchase the property anytime within 12 months if they choose.

The buyer pays rent each month all of which gets deposited in an escrow account on their behalf; rent accumulates as equity towards a maximum (per the lease-option agreement) 5% down payment.

I have spoken with several real estate attorneys and lending institutions and they have all confirmed that if the money is deposited directly from the buyer into escrow on the buyers behalf, then it is not considered a seller contribution.

However, I always recommend full disclosure when you speak with your bank prior to entering into any purcahse agreement. Show your lender the option agreement, contract and provide full disclosure ahead of time.

I really like the program and I expect to see more and more of this type of seller cooperation with buyers to close real estate transactions in today's challenging real estate and financing market.

10 Best Ways to Search on-line for Phoenix Real Estate

Scott Skinner (Liberty One Lending) — Sun, 14 Dec 2008 10:49:47 -0800

Great Tool for Consumers

Via James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com):

Searching for homes in Scottsdale, Paradise Vally, Fountain Hills, Peoria, etc.. can be a daunting process. There are roughly 60,000 homes for sale in the greater Phoenix area (Maricopa County) if you include the AZ regional Multiple Listing Service (MLS) , For Sale By Owner (FSBO) and foreclosure sales.

Further, without the help of a Realtor it can be difficult to find homes for sale that meet your criteria and many buyers prefer to start the home search process privately without the help of a Phoenix area Realtor.

Additionally, the search features on many Phoenix Realtor web sites are confusing. Unfortunately, they often require consumer information to receive the full Phoenix MLS search. Understandably, many first time home buyers do not feel comfortably providing that information right upfront.

Here are the names of some of the best Internet search platforms that give you access to Phoenix and Scottsdale homes for sale.

I do highly recommend you contact a local Realtor who can help filter the home listings for sale and prepare a comparative market analysis (CMA) to help our home search.

Here are the names of some of the most popular sites to search homes for sale in Phoenix and the towns that make up Maricopa County.

Realtor.com

ColdwellBanker.com

Trulia.com

Zillow.com

Roost.com

Move.com

City-Data.com - demographics and city information

Rate Window - wholesale mortgage rates direct

Wexzilla.com ( I had to throw a plug in for our free (no sign up required) Search Phoenix Area Homes feature

Call or email a realtor

Again, if you are looking for a home, it is always wise to start doing your own research by looking at the vast amount of information on line.

However, there is no replacement for speaking with and asking the opinions of at least one, if not 2 industry professional, mortgage brokers, real estate attorneys and/or Phoenix real estate agents. The information the have will be more current and can be interpreted more accurately. Most importantly, if you have questions the can either answer or find the right answer.

Finally, if you decide to buy a home. A Phoenix area realtor can help you with a CMA, prepare an appropriate offer, protect you in the 9 page AAR (AZ Association of Realtors Real Estate Purchase Contract. A Phoenix Realtor can negotiate on you behalf. Most importantly, if the contract does not work out they can protect you with appropriate contingencies and make sure your earnest money is protected.

Do your research on line first. Then, call a Phoenix | Scottsdale Realtor.

_________________________________________

Copyright © James Wexler * 10 Best Ways to Search the web for Phoenix Real Estate *

Contact James Wexler (480) 221-8080 for your Phoenix AZ | Scottsdale AZ Real Estate needs

is Home Buying right for you?

Scott Skinner (Liberty One Lending) — Sun, 14 Dec 2008 10:41:17 -0800

questions to ask yourself if home buying is right for you

* Do you need the flexibility of renting? or can you afford to stay in your home for at least 5 years or longer?
* Can you afford a 20% down payment? *
Can you afford a monthly payment on a 30-year fixed mortgage? *
ask your CPA … Does the tax benefit of home ownership offset a potential decline in home value?
* Have you reduced other real estate debt before you add more on this home purchase?
* Does a fixed monthly mortgage payment for the next 15 years outweigh the likely inflation of rents during that same time (called an inflation hedge)

These are broad questions that can have many variations for each individual situation. However, it is a good foundation from which to start your home buying process.

"Rent-to-Own"

Scott Skinner (Liberty One Lending) — Mon, 08 Dec 2008 12:10:05 -0800

"Rent-to-Own" .

I have to recommend that you do not attempt this without the advice of an experienced attorney and/or real estate professional.

Lease option - "contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance"

Lease Purchase - "a Lease to Purchase contract combines a basic lease contract with an option to purchase contract, which creates a Lease to Purchase contract." The main difference being that the lease purchase contract, the Buyer is obligated to buy; if not, the buyer would likely be in breach

a Home is place to live . FIRST!!

Scott Skinner (Liberty One Lending) — Mon, 08 Dec 2008 12:09:25 -0800

I call Arizona's last 10 years the real estate ‘gold rush' ....

where for the first time home buyers thought of getting rich and making money on their own and a place to live was secondary.

yes, a lot of money was made; and lost. However, let's remember the

Top 5 reasons to buy a home. (the order is different for everyone)

a Home is place to live
enjoy tax benefits
a fixed mortgage payment in time (rents typically rise with inflation)
each month you save money by paying down your mortgage loan
build a nest egg over time

Today's home buyer is seeing opportunities that they may never have expected.

I encourage you to buy a home only if you can stay in your home for at least 5 years, put down at least 10% (20% is better) and get 30-year fixed mortgage.

If you can handle the payment comfortably then history has proven that you will build a nest egg while enjoying all the other benefits home ownership has to offer.

not all Short Sale are even a Short Sale at all

Scott Skinner (Liberty One Lending) — Sun, 30 Nov 2008 13:42:49 -0800

Unfortunately, many, if not most "short sale" listed in the MLS are not approved "short sale"

The real estate agents, just take a listing, and market and advertise the home at a price that would net the seller less than the amount owed. Then, when an offer is received the listing broker submits that offer to the bank. I was told by a well respected teacher at the AZ School of Real Estate , Bill Dowdy, that this is averaging about 78 days! yes, almost 3 months.

The more professional way to handle a proposed "short sale", (I say proposed, because, not all banks will approve a "short sale") is a step by step process that if approved, the bank will in effect, issue a "short sale"approval.

Beware of Contingencies

Scott Skinner (Liberty One Lending) — Sun, 30 Nov 2008 13:41:13 -0800

AWC-C - this is a home for sale, under contract, however, the purchase is contingent upon the sale of the buyer's property. In this market, I generally advise my clients from taking these type of offers. However, in some cases , this can make sense.

The AWC-I is very common these days , as REO/ bank owned properties or 'short-sales' will still entertain offers while the bank is making a decision.

Be careful to look for these contingencies.

If you are a buyer, make sure your Realtor asks the listing broker if the home is Active with any contingencies so you know what is the best way for you to proceed with your offers.

If you are a seller, don't hesitate to use these contingencies, to protect yourself from questionable buyers and keep your home marketed actively for back-up offers.

World's Most Expensive Luxury Real Estate Markets

Scott Skinner (Liberty One Lending) — Tue, 25 Nov 2008 12:06:28 -0800

you are interested you can check out the Home Price Comparison Index (HPCI) study, evaluated affordability in 77 international markets, in addition to the 317 U.S. markets

the List of Top 20 World's Most Expensive Luxury Real Estate Markets

The World's Most Affordable Housing Markets

I just like to know where to shop

and just so you know ..... there is excellent good news for all of us

the Good Ole USA is # 1 on the most important list of all

Countries with the Most Millionaire Households

distressed properties made up 45 percent of all property sales

Scott Skinner (Liberty One Lending) — Mon, 24 Nov 2008 16:48:48 -0800

Make sure you are sitting down. This was a shock to me. and I am from AZ. The foreclosure capital of the world.

Nationwide, (across the whoe US of A)

the Realtors group estimates that sales of distressed properties made up 45 percent of all property sales in October.

There were 4.23 million unsold homes on the market in October, down slightly from a month earlier. At the current sales pace, it would take 10.2 months to sell all the properties.

Until the inventory of homes falls to more normal levels, analysts say, the housing slump is likely to persist. Inventories remain at historically high levels, driven by a massive wave of mortgage foreclosures.

"There are still way too many houses being offered and that is likely to stay that way for quite some time as we work through the foreclosure problem," said Joel Naroff, an economist and president of Naroff Economic Advisors in Holland, Pa.

Soaring foreclosures are a driving force behind the credit crisis that has upended Wall Street and caused the government to spend billions rescuing numerous major banking institutions, the latest of which is Citigroup Inc.

We need help! if you were not sure already

Scott Skinner (Liberty One Lending) — Mon, 24 Nov 2008 16:35:20 -0800

We need help .

Can the government insure mortgages with smaller down payments ??

Can the government subsidize lower mortgagerates ??

Can new legislation mandate lending by the banks if they want money from the $700 Billion bailout ??

Nationwide sales of existing homes fell more than expected last month, as economic fears made buyers leery even though prices plunged to the lowest level in more than four years. And the decline is expected to get worse because October's results reflect sales contracts signed before Wall Street's nosedive.

The National Association of Realtors said Monday.

The median sales price plunged 11.3 percent from a year ago to $183,000.

That was the largest year-over-year drop on records going back to 1968, and the lowest median sales price since March 2004.

Buy, Buy, Buy

Scott Skinner (Liberty One Lending) — Sun, 23 Nov 2008 13:45:15 -0800

Negotiation is on the buyers side - the glut and over Supply of homes is a major hurdle. In fact, I know many sellers who have no showings , less any offers in the last 6 months. If you present a competitive offer most sellers will be very ready, eager and willing to negotiate price, time frames and incentives to get a deal done.

4) Home prices have dropped sharply -S more than 30% in most of the country

My crystal ball is not 100% effective and I am not saying this is the absolute bottom.

However, with low interest rates, the easing of credit to get a loan, the ability to choose from the over abundance of supply, the ability to negotiate and this significant drop in prices may afford you the opportunity for which you have waited.

Consider why you are buying your next home. If it is a place to live, use , make your home and raise a family, a tax incentive, and a long-term appreciating asset (notice - I said long-term) , today may be an excellent opportunity to buy.

Zero Interest Rate Policy on the way ?

Scott Skinner (Liberty One Lending) — Sat, 22 Nov 2008 13:07:23 -0800

Do we need further interest rate cuts?? FED Chairman seems to be on a cutting spree and likely continue to cut rates and probably keep cutting. However, it is a tricky game of allowing people to borrow (take on debt) to spend more to help an ailing economy.

In terms of real estate, we need further cuts to help a struggling real estate market as the 2% rate cuts have not impacted or significantly reflected in a drop in mortgage rates.

Are we headed to 0 % or ZIRP (Zero interest rate policy?)

However, its a Catch-22, as we have to be careful not to create another Real Estate Bubble with people buying more home than they can afford with these lower rates

Evaluate Risk before buying

Scott Skinner (Liberty One Lending) — Sat, 22 Nov 2008 13:05:09 -0800

Here are 3 thoughts to consider when evaluating risk before deciding whether or not your next real estate buying opportunity really is as good as it looks.

1) Comfort level - too much stress, fear , and unhappiness, are lingering effects of taking a risk larger than you may want to handle

2) Can you afford a loss - if there is one thing this difficult period in real estate has taught us, is that real estate is not guaranteed to go up forever, ask yourself if you can afford to hold your real estate years and years past what you had hoped.

3) Opportunity cost - deciding not to buy that "good deal" may be the best investment you ever make. Experts will tell you that there are always other buying opportunities. If you have the money in your pocket and the ability to make a decision when it presents itself you may find that opportunity that you could not have take advantage of if you had purchased that deal on which you passed.

Yes, There are a lot of great deals. and yes, We All take Risks in Life; personally and professionally.

The purchase and finance of a home is a risk that most people take. Historically, it has been very rewarding.

However, be prudent, make sure you have done your research, have double checked your finances, and have properly evaluated risk

Wall Street likes the new Treasury Secretary

Scott Skinner (Liberty One Lending) — Sat, 22 Nov 2008 12:48:12 -0800

This month, the S&P 500 skidded more than 25 percent in the 12 trading days after the election ...

before todays surge of 500 points.

The Friday afternoon news that Obama is likely to choose Timothy Geithner, the president of the New York Federal Reserve, to be the next Treasury secretary helped spark a rally that sent the Dow Jones industrial average surging almost 500 points.

Geithner has worked closely with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke this year as the government seized control of mortgage giants Fannie Mae and Freddie Mac and insurer American International Group Inc.

I hope Wall Street's excitement carries over to 2009 and trickles down to Wall Street and then to main street.

Listen to Shakespeare ! buy or not to buy

Scott Skinner (Liberty One Lending) — Sat, 22 Nov 2008 12:39:27 -0800

This slight variation of Shakespeare's famous line from Hamlet is the question I am hearing from as they buyers ponder and weigh-in on when it comes to that big decision to purchase real estate.

Here are 4 things to consider whether now is the right time for you to buy a home here in Greater Phoenix , Fountain Hills or Scottsdale....

1) A Home first, and investment last - a primary residence is just that, a residence, it is a place to live, to realize the American dream, to enjoy, to raise a family, it can create long-term wealth, however that is not the primary reason to enjoy homeownership

2) Low interest Fixed rates are a hedge against inflation - some of the lowest fixed rates are available; as a result you can buy the same house with a lesser payment, more importantly, with fixed monthly payments, you have a hedge against inflation, as your dollar buys more new home now, than it will later

3) Tax advantages - speak with a CPA or expert, however, there are some great tax advantages to primary homeownership, including no capital gains breaks on up to $500K in appreciation for married couples and deductions of interest against income

4) Long-term capital appreciation - many Americans have created significant wealth through home ownership and real estate across the country and here in Maricopa County, Arizona .

Remember, Capital Appreciaion should be the last reason to buy; as homes do cost about 8%-10% year to own when you figure in interest, taxes, insurance and upkeep. Though, if you have a fixed rate mortgage, pay down principal and are patient, history tells us, you will enjoy the many wealth creation benefits

Make sure you make prudent investment decisions when you buy Real Estate and buy a home for the right reasons.

Most importantly, make sure you can afford it, there is no sense working hard 7 days a week, even if we do have beautiful weather here in Scottsdale and the Greater Phoenix Valley, just to struggle to pay a mortgage that you cannot enjoy.

Will more rate cut have any effect ??

Scott Skinner (Liberty One Lending) — Wed, 19 Nov 2008 15:06:07 -0800

Do we need more rate cuts ??
Have the major rate cuts worked??
Will more rate cut have any effect ??

The stock market continues to decline, the bailout has not helped ease credit and today, and today the Federal Reserve sharply lowered its projections for economic activity this year and next,

and the FED signaled that interest rate reductions may be needed to help combat the worst financial crisis to jolt the country in more than a half-century.

Facing the likelihood of "significant weakness" in the economy, some Fed officials suggested "additional policy easing could well be appropriate at future meetings," according to documents from the Fed's most recent closed-door deliberations on interest rate policy at the end of October.

At that Oct. 29 session, the Fed ratcheted down rates to 1 percent, a level seen only once before in the last half-century. Many economists predict the Fed will lower rates again at its last meeting of the year on Dec. 16, to help brace the sinking economy.

Even while hinting that another rate reduction could be forthcoming, Fed officials worried that the effectiveness of previous rate cuts "may have been diminished by the financial dislocations,

the FED is suggesting that rate cuts wouldnt hurt. But, it appears they are likely to help very little!

Now is not the time to forget about energy crisis

Scott Skinner (Liberty One Lending) — Mon, 17 Nov 2008 13:57:44 -0800

we have a bad tendency as americans to worry about things when they are a problem, when we should worry about them before they are a problem.

One area is gas and energy prices.

This was the forefront of the election while gas prices where at record highs , above $4/gallon across the country in mid-july.

Everyone as up in arms. Now , that we are 50% of those prices, concern is on the back burner.

Here are my best ideas for cheaper gas. The extra disposable income can go towards economic consumption which helps the economy, creates, jobs, ideas, innovation, more revenue for the government, more social programs and ultimately more wealth for all.

Gas Tax Cut - a Gas Tax cut would provide immediate relief. However, people fear a tax cut would just cause more gas consumption.
Income tax cut - I would suggest a tax break on the first $75K income. This group is more affected and has less discretionary income and savings. An income tax cut for certain incomes would open more disposable income. The problem with a tax cut is that while effective, it is not immediate. A tax cut has to pass the House, Senate and then a Veto by the President.
Increase taxes - spending money on programs for finding alternative energy sources. However, I don't know anyone who likes higher taxes.
Open U.S oil reserves - by drilling in places like Alaska - less dependent on foreign oil - I have read that the US has more than 50 years of untapped Oil reserves.
Raise taxes on SUV's , trucks and high use vehicles - Increase incentives for more fuel efficient vehicles. These are standard in Europe - why not here?
Regulate Oil speculation- commodities traders have had an impact on prices betting on future growth - again difficult to control global markets.
Increase tax breaks/government benefits to providers of public transportation. Thus, passing on lower costs for commuters.
Carpool, Ride a Vespa, bicycle or walk