A Mass Exodus From the Mortgage Business - 10/24/07 11:43 AM
We had heard the rumors. Their loan officers were knocking on our door, and in meetings with our owners. But today it became official: our biggest competitor is out of business. You might think it would be cause to jump for joy, but no. It is sad. It is scary. The mortgage crisis is costing people jobs in a big way, and now it is way too close to home.
You see, our biggest competitor used to be us. Several years ago, our company broke off from their company, with our owners inviting the chosen ones to go with them. Most of those within our … (49 comments)

Buy Stupid, Sell Smart (The Forrest Gump Way to Buy Real Estate) - 10/16/07 11:30 AM
                                                                            "BUY LOW" is the classic advice for buying real estate.  But how low is low enough?  I say, a BETTER STRATEGY is to just BUY STUPID. Funny thing, you can get rich much faster being stupid.  Just ask Forrest Gump.
When you buy stupid, you don't need to wonder when the market will bottom out. Nope, all you need to do is announce your intention to buy real estate at any gathering. If every one else in the room thinks you're stupid, your timing is perfect. Go ahead and let them tell you all the reasons NOT to buy real estate, and why you are stupid.
BLAH BLAH BLAH....the economy. BLAH … (12 comments)

The Stairway to Heaven Needs a Ramp - 10/14/07 04:37 PM
Caught in a time warp between their kids finally finishing college and their elderly parents needing help, is that huge bulge in the population known as THE BABYBOOMERS. Although it remains to be seen how their retirement will change the face of our economy, I can tell you one thing for certain: They do not want 2 story houses with STAIRS.
Friday night, as my friends and I sat around the fire, listening to gently falling rain and sipping wine, the conversation (as usual) drifted towards real estate.  My friends, like so many others their age, are exasperated in their quest to buy real estate. 
Here was their RANT: "Where the hell are all the … (51 comments)

Why Realtors Should Lease Their Cars - 10/11/07 10:35 AM
 To all the Realtors out there who say this: "I would NEVER lease a car, because you don't OWN anything and you don't END UP with anything", I say this: YOU JUST DON'T GET IT. 
Let me first clear the air by answering this question: "Do I lease my car?" YES, OF COURSE. But this is not what qualifies me to make the above statement. I spent 20 years leasing cars, mainly to self employed and professionals.  I was eventually "recruited away" from this business because I bonded so well with my mortgage broker auto lease clients.
You see, mortgage people, by … (21 comments)

The Triple Whammy: Sinking Into Adjustable Rate Quicksand - 10/09/07 06:47 PM
Now, why would anyone be afraid of a little old adjustable rate loan, going up just a little bit, in just a little while? Well, one thing that was not mentioned in Michael Mape's blog today was what I call THE TRIPLE WHAMMY that occurs when an "interest only" loan adjusts. Here's how an adjustable can blow up in your face:
WHAMMY # 1: Because you have only paid the interest, you still owe the entire amount you borrowed. However now that original amount will be amortized over 25 years, NOT 30 YEARS. This is exactly like starting all over again, but with a 25 year loan. (the shorter the term, the … (17 comments)

The Devil Has a Stated Income Loan - 10/03/07 10:06 PM
 
They call them "Liar Loans". The politicians threw the book at them in Nevada this month.  And no mortgage meltdown rhetoric would be complete without mentioning this devil child of the real estate lending world: STATED LOANS.
If the words unethical, dishonest, immoral or come to mind when you think of these loans, you are not alone. But you should know that while stated loans are not the root of all the evil in the real estate world, they probably do take the prize as one of the most misunderstood loan products on the face of the earth, and possibly one of the most abused.
When and why did banks cast aside documenting … (69 comments)

Top Ten Ways Your Mortgage Broker Can Help You Sell More Houses - 10/02/07 10:45 AM
 
Today is my favorite day of the week. Tuesday is the day I go on broker tour to look at the new houses on the market. I call it getting my "FIX" because as much as I love being a mortgage broker, I also loved being a Realtor for several years before I jumped ship.
So yes, I have an uncontrollable desire to see houses for sale, and suppose I am a hopeless real estate geek.  But what I like best is the opportunity to talk to our local Realtors about the current market and property values in our area.
Okay, scratch that. What I … (13 comments)