real estate: Fix The Market - Post Three!
- 12/13/11 02:29 PM
A customer called me. I've made several loans for him over the years. He's been a fairly successful guy over the years, but like many, he's fallen on hard times. He currently doesn't own a home, having short sold a few years ago after nearly suffering a divorce. He's been a small sub-contractor who used to employ a crew of 20 to 30 employees. With the slump in the economy, his income was reduced by more than 70% from normal, even farther when you consider where he was at the peaks of the economy. He's struggling with debt left over from a lifestyle developed at … (2 comments)
real estate: Mortgage Slang 101 - Mortgage Insurance
- 11/28/11 09:24 AM
Mortgage insurance is viewed nearly universally as a bad thing, but in reality, it's a tool to be used that can be very good for home buyers, the housing market and the economy in general. Why do many complain about mortgage insurance? Because its expensive, and sometimes difficult to get rid of when it's no longer necessary. If that's the case, why do I say it can be good for buyers and the economy? Because it's a tool that allows people to buy a home with less than twenty percent down. Mortgage insurance insures the lender against the risk of the … (2 comments)
real estate: Support Small Business? How About in Your Real Estate Transaction?
- 11/26/11 03:54 AM
The Small Business Saturday promotion is a great one that's going on today. Your local small business is run by your neighbors, family and friends. They spend their profits and wages in your local economy. They employ your neighbors, who spend their pay in your local economy. Oftentimes, they support local charities that help make your community. Did you know you can support small business in your real estate transaction too? Choose a local lender instead of one of the big national banks, or that on-line lender that looks so tempting. In addition to the benefits of using small business above, … (2 comments)
real estate: National Sales Increasing?
- 11/22/11 01:29 AM
Yesterday, the National Association of Realtors announced that home purchases rose 1.4%, beating economic forecasters estimates for the month. Is this a sign of good things to come? Affordability is at record levels. Lower prices, and low interest rates have created opportunity for homebuyers who haven't been able to justify buying. In our market place some home buyers are getting house payments not only lower than what they could rent the house for, but for a little more than a luxury car payment. Is this the time to buy? Perhaps. It depends on the buyer, and it depends on the buyers … (2 comments)
real estate: Mortgage Slang 101 - Closing
- 10/30/11 05:33 AM
Most people think closing is when they sign their closing documents. In our state, and in many states, that's not how it works. Closing is when escrow can make the sellers funds available to them and the ownership rights available to the new buyer. Have all the terms of the purchase and sale agreement been met, the escrow instructions met, all contingencies and conditions met, and the deed has been recorded, and are the sellers funds available? That's closing. Escrow is a "disinterested third party" who is supposed to gather the buyers money, and the sellers deed, and transfer the one … (3 comments)
real estate: More Weak Analysis in Appraisals -
- 10/28/11 01:39 PM
So - I've commented on this before, but it really bothers me. I have another appraisal, this time completed by an MAI/SRA that substantiates depreciation in values based on faulty data. When I took appraisal classes, the only acceptable adjustments to the comparable sales were based on a "matched pair analysis". In other words the appraiser was required to prove the adjustment to value for the difference in the property and/or transaction based on analyzing sales in the area and determining the actual difference in the value. Once again, I get an appraisal that justifies depreciation via use of MLS data … (0 comments)
real estate: The Harder I Work, The Luckier I Get!
- 10/17/11 05:44 PM
So, here's an old trick that this dog knows....It's funny, whenever I find business is slow, I can trace it to a time in a previous month or two where I didn't work so hard. There's a reason that sales trainers push you to do "the 90 day burn" or "84 days to success" or........ Put in the effort now and keep at it for a few months, and you can count on business in 90 days. Old school stuff....like talking to people and stuff - and you'll make some money, help some people. It's funny how the top sales people in … (3 comments)
real estate: Time Machine? Is It 2006 Again?
- 05/11/11 07:43 AM
So, as of today, one of my pre-approved borrowers has made 4 offers on houses in the $150,000 price range and been outbid by other buyers! His offers have not been low-ball offers, several have been made above the asking price. Another agent told me today a buyer for a Happy Valley (aka Death Valley) house was outbid on a $325,000 house by $10,000! I feel kind of like Doc Brown kidnapped me in his DeLorean and took me back in time to 2006! Several of my other pre-approved buyers are facing similar situations, and I'm hearing from agents that this … (0 comments)
real estate: Carmen will get you.....
- 04/04/11 04:07 PM
Someone told me that once - and they weren't referring to a woman....it's kind of like the bumper sticker - "my carma ran over your dogma". A play on words - Carmen will get you really means, karma will get you. You know what goes around comes around. You reap what you sow. This has been so true for me in my life. Good things I've done have paid me back well, bad things I've done, I've been paid back for in many ways and many times. I was thinking of these types of truths this afternoon when my google alert … (2 comments)
real estate: Why Are Appraisals So Bad?
- 03/26/11 02:19 PM
Ok - so....blinding flash of the obvious here....Appraisals are serious problems for real estate transactions right now. Lawrence Yuen, the Chief Economist from the National Association of Realtors said this week "Home sales are being constrained by the twin problems of unnecessarily tight credit and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers". Many of you have experienced first hand the effects of a low real estate appraisal. Maybe you were denied the ability to refinance to a lower interest rate or worse yet, maybe you had a sale blow up on a … (4 comments)
real estate: How To SCREW UP Your Mortgage In Process!
- 03/19/11 08:34 AM
So - after years in the business, I thought I'd share with you the most common mistakes borrowers have made that make a good loan go bad! Here's how to do it: Quit or change your job right before you apply or while the loan is in process. Some jobs have probationary periods where they can let you go without reason. That can be a problem! If you quit your job before closing and take another one? Lenders check at closing! Open or Apply for any new credit accounts! How would we know? The quality control credit report done at closing! … (3 comments)
real estate: Beware the Home Inspection!
- 04/21/10 08:17 AM
What? Home inspections are a good thing aren't they? Of course home inspections are a good thing. Any smart buyer would get one. It only makes sense to make sure you understand the condition of a purchase as big as a home. Why beware? Because, your lender could require a copy. Again, this is not automatically a bad thing. The lender is concerned about the condition of the collateral on your loan. They want your home ownership to be successful, and not end up as one of the many that are being foreclosed on. They also don't want to end up paying … (40 comments)
real estate: It's Time To Buy!
- 06/04/08 06:13 AM
Ok, you say. Evey Realtor/Loan Officer/Home Builder tells you this because they are going to make money when you buy and are desparate for deals, right? Well - I guess you could be right on that, but, it really is the time to buy! Why? 1. Interest Rates Are Low. You've heard it before, but it bears repeating. Mortgage rates are a huge factor in making homes more affordable, I bought my first house in 1982 and got a screaming deal on rate of only 12%! Rates were 17% at the time. Our rates today are awesome right now. 2. Motivated … (0 comments)
real estate: The Mortgage Du Jour of the last Few Years Slams the Stock Market!
- 07/25/07 08:42 AM
Don't be fooled - Despite their CEO's insistence that it's the housing market that caused his companies 33% drop in earnings and the stock market's subsequent 200 point tumble on the news, most experts believe it's the make up of the portfolio of the largest mortgage banker that is the real ticking time bomb(I can't tell you who the lender is, but their name start's with C and ends in wide). Their CEO has sold over $300,000,000, yes that 300 million dollars of stock in the last year. Of course, he claims it's just an asset allocation move for his personal finance, but it appears … (6 comments)
A customer called me. I've made several loans for him over the years. He's been a fairly successful guy over the years, but like many, he's fallen on hard times. He currently doesn't own a home, having short sold a few years ago after nearly suffering a divorce. He's been a small sub-contractor who used to employ a crew of 20 to 30 employees.
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