Lendisphere

Just a little reminder about the HOME RETROFIT TAX CREDIT coming your way for energy-related upgrades or  installations you do on their properties during 2009 and 2010:

New water heater on the honey-do list?  What about some new air conditioning?  You can take a tax credit up to 30% of your cost for them!  And you can take it up to a  maximum of $1500!

The energy-saving projects covered in the tax code range from installing a skylight or adding insulation, to purchasing storm windows or a new furnace, and all the way to entire solar and wind systems. 

For more info on what ’s covered, click   HERE!

……  it couldn’t last forever.

The January minutes of the Federal Open Market Committee’s meeting are out, and it looks pretty clear that the ultra-low interest rate party is going the way of a summer sunset.

According to the minutes, the Powers That Be are doing a little back-room brainstorming about how to unwind these pesky billions (wait, maybe it’s trillions by now — I lost count) of stimulus money.   One way to do that would be to put a big hunk of mortgage-backed securities up for sale — the very ones the Feds have been purchasing in droves to keep rates artificially low.

Like summer love, it was sooooo good while it lasted.

Vanilla.

Hope you like it.  Because it’s gonna be your only choice.

If the Administration gets its way, in the future when consumers go shopping for a home loan,  they will automatically get slotted into what is being called a “Plain Vanilla Home Loan.”  Or, as some people are calling them, “Government Approved Loans”.  Which sounds alot like “Government Approved School Lunches”.  And everybody knows not to eat the Salisbury Steak if it’s under a heat lamp and served by the ladies in clear plastic caps.

Bottom line: the government would give its seal of approval to certain specific types of mortgages, and if you happen to choose another type of loan product that  met your needs better,  you’d have to get a permission slip from your mother because it would be like walking across the street by yourself. 

And we don’t want that now, do we?

This is such an important video to watch from the boys at ThinkBigWorkSmall.  It’s about the slippery relationship between the FDIC and the banks – in this case specifically IndyMac.  Please watch it and forward it to everyone you know.  Now I understand why Americans, taking economic body blows right and left from this economy, can’t get a loan modification. 

To watch it,    CLICK HERE.

So now you know.   Confusion begone.

Taking a break from our regularly scheduled programming, I wanted to share this site with you.  It’s a site called www.karmatube.org, and it is basically made up of short videos of simple things we can do to “spread the good”.  

*gulp* (lump in my throat)  

Want to feel human again?  Click HERE.

HousingWire is reporting that Appraisal Valuation Fraud has INCREASED over the last twelve months, according to an index measured by Interthinx, a software developer specializing in the mortage industry and its “issues”.  

But WAIT A MINUTE…..didn’t Congress pass HVCC early this year with the express purpose of combatting fraud by keeping brokers out of the appraisal process?  Didn’t they tell us it was because the  Big Banks were the only ones trustworthy enough to handle that grave responsibility?

So since the Big Banks have been handling appraisals themselves or contracting that job out to their “management companies” (which are primarily owned by the Banks themselves, providing a new source of revenue back to the mothership)…. and now that appraisal fraud is skyrocketing 46% from this time last year, I think it’s fair to ask the obvious question…  who ACTUALLY done it?

Despite being called a “Requiem”, this piece is cool and thoughtful with an undeniable sass — just like a good realtor.  The times are challenging right now, but ultimately:   you can’t hold a good man/woman down.  

David Saks is a realtor from the great state of Tennessee – so he’s weathering wintry economic conditions under extreme humidity.  Give this melody a listen, or you can read his original post by clicking HERE.

CNNMoney.com has an interesting article about the next big demographic trend and its effect on housing demand:  The Echo Boomers.

“There will be 5 million more echo boomers than there were boomers when they first started swelling housing markets,” said Eric Belsky, executive director of the Joint Center for Housing Studies.

“This is a powerful, powerful underpinning of future demand,” said Belsky.

 To read more, click HERE.

Do you ever feel like David battling Goliath when trying to negotiate a short sale deal with the bank?

It never seems to make sense why the transaction should be drawn out so long.  All the pieces are in place:   the seller is desparate, the buyer is willing.  So you put in a fair offer and assume you will hear something in a reasonable amount of time, knowing that the bank has a backlog of ten million more vacant properties properties just like it costing them money.

You put in your offer and wait.  And you wait.  And you wait some more. 

Do you ever wonder if there’s something sketchy going on behind the scenes?  Do you ever wonder if they really don’t WANT to sell the house?

Bob Hanzey, a San Diego realtor thinks so.  He thinks the big banks go so far as to transfer equity lines of credit to unregulated affiliates during the actual process of the short sale in order to circumvent the rules set up under Obama’s Foreclosure Alternative Program (FAP).   Then the affiliates refuse to cooperate on the short sale, effectively forcing a foreclosure.

Do you have a short sale horror story?  Bob Hamzey is collecting them so he can deliver the lot of ‘em  to federal regulators and show them firsthand what a shoddy situation this is for both the buyers and for the sellers that the FAP program was designed to protect.  If you’d like your story included, you can send it Bob at:  besthomessd@aol.com.

Fight the power, Bob.

And I’m not talking about The New Kids On The Block.

I’m talking about our friends at HUD once again bringing back the Mortgagee Letter 2009 - 15 having to do with how to use that pesky $8000 first-time homebuyer tax credit to actually get a buyer into a home. 

HUD’s posting sends a mixed signal regarding how this cash for closing can be accumulated.  But if you are confused – and I know I was –Robin Medecke does a fantastic job of breakin’ it down for us right here.  Take us to the bridge, Robin…

I’m still getting calls about it. 

“Carie, what’s up with the sweet new HUD program using the tax credit?”

And it breaks my heart.  When I hear the optimism on the other end of the telephone line, the naked joy about the prospect of down payment assistance for new buyers – it makes it very hard to smash all those hopes with the hard truth:  HUD’s new ML 2009-15 ain’t gonna happen.

Here’s how it started –  at the most recent NAR convention, HUD Secretary Donovan offered up a lovely idea:  that in the coming weeks, first-time home buyers would be able to borrow against their new $8000 tax credit they had coming, and use it to make their down payment!

Translation:  FREE MONEY!!

And, in fact, on Monday, May 11, HUD followed up this announcement with the issuance of Mortgage Letter 2009 -15 instructing lenders on how the program would work.

But in one of those quick government switcheroos with fingers pointing in every direction, by late in Tuesday evening , ML 2009-15 had been neatly and completely pulled.

Guess that makes HUD an Indian Giver.

Is it possible this real estate market might be barely inching toward recovery?  Could it be?

Real-Time Housing Report, published by Altos Research and Real IQ say, “We won’t be able to call a bottoming of the market until we see stability continue into the seasonally weak fall and winter months.”

But for now…the Real Time Housing Report is clear:  the prices of homes on the market are climbing, and inventory levels are falling.

The prices of properties listed for sale rose in 22 of 26 major markets in the month of April.

Add to that another little bit of happy news:  in that same month, they also report that inventory actually fell in 15 of the 26 major markets.

Add to all this happy talk a statistic from NAR’s “pending home sales index” — which is based on contracts signed in March.  That index increased 3.2% in March.   Hmmmmmmm.

So the question is:  are we there yet?  Are the property valuation clouds finally parting, or is this just a temporary fluctuation of the spring market and/or ultra-low interest rates?

Take back your life!

Tim Ferris, of  The Four Hour Work Week fame, has this sage wisdom to offer on ways to reclaim your life, and how to make time your own again:

“Not-to-do” lists are often more effective than to-do lists for upgrading performance.

The reason is simple: what you don’t do determines what you can do.

Here are nine stressful and common habits that entrepreneurs and office workers should strive to eliminate. The bullets are followed by more detailed descriptions. Focus on one or two at a time, just as you would with high-priority to-do items. I’ve worded them in no-to-do action form:

1. Do not answer calls from unrecognized phone numbers
Feel free to surprise others, but don’t be surprised. It just results in unwanted interruption and poor negotiating position. Let it go to voicemail, and consider using a service like GrandCentral (you can listen to people leaving voicemail) or Simulscribe (receive voicemails as e-mail).

2. Do not e-mail first thing in the morning or last thing at night
The former scrambles your priorities and plans for the day, and the latter just gives you insomnia. E-mail can wait until 10am, after you’ve completed at least one of your critical to-do items…

3. Do not agree to meetings or calls with no clear agenda or end time
If the desired outcome is defined clearly with a stated objective and agenda listing topics/questions to cover, no meeting or call should last more than 30 minutes. Request them in advance so you “can best prepare and make good use of the time together.”

4. Do not let people ramble
Forget “how’s it going?” when someone calls you. Stick with “what’s up?” or “I’m in the middle of getting something out, but what’s going on?” A big part of GTD is GTP — Getting To the Point.

READY FOR MORE?   CLICK HERE. 

Yes, you may have filed on time, but is it hard to see your desk underneath the aftermath of Tax Season ‘09?  

Are you losing things beneath the piles of charitable deduction receipts, real estate tax notices, account statements and 1099’s leftover after April 15? 

If you are suffering from the dreaded post-tax season desk mess, it’s time to kiss all that goodbye.   Here is the definitive list on what you need to retain.  If it ain’t on this list:  shred, baby, shred!  

 The Home Valuation Code of Conduct affects every conventional loan application made after May 1, 2009. It requires brokers and most correspondent lenders to hand over control of the appraisal to the investor themselves, or to order their appraisals through an Appraisal Management Company.

The intent behind this legislation is to keep parties related to the transaction from hitting the electric shock button when an appraiser can’t find value, and rewarding him with a food pellet when he behaves.  It’s all about shielding the appraiser from undue pressure.

But here’s the thing we know: the appraisal is the absolute cornerstone of any loan package. Everything else is built around that primary piece of collateral.   We count on a  great appraiser to drill down to a fair and accurate value, even in tricky neighborhoods and with unique properties.  We need accuracy, on time, every time.

Well, here’s the latest joke I’ve been hearing from my appraisers, who I consider the best in the business:

Q: Guess how much the appraisers are being paid by these Appraisal Management Companies?

A: On a $350 conventional appraisal, appraisers will be paid in the neighborhood of $165.

Will Work For Peanuts!

And that’s not funny.                

Appraisers’ income will be slashed by more than half.  As a result, we are going to see the best appraisers leaving this profession en masse.

Accurate appraisals can take tens of hours of work, and really great appraisers will not do all that work for peanuts. So who will?

The newbies. The ones who phone in a glorified AVM. The ones who are not particularly interested in the detailed work to document the true market value of your listing  with unique features, or in a location with few comparables, or in a historic district.

HVCC is going to put the most precious and subjective piece of loan documentation in the hands of people who will work for less than half the industry standard.  I think that is nuts.

What do YOU think about HVCC?

…..if your seller is upside down

Other than people with vertabrae problems…who wouldn’t stand on their head to get a sale ? I mean c’mon….that’s it ?  Well in today’s market even getting upside down may not be enough if your seller is…….well, upside down.

I’ve been saving this great video on “How To Handle The Disappointment of an Upside Down Seller” (and still get the listing), and I thought I would share it with everyone.  This came out on Election Day, 2008, but this quick ten-minute seminar by David Knox is more relevant now than ever:  it covers how to break the news to your seller that they may not make any money on the sale of their home, or worse still, they may have to come to the  table with a checkbook.  Ouch. 
 

Dave’s tie may be terrible, but the information is worth watching.  Just click the link below.

The Upside Down Seller - click here

But before you do, please be sure to read all the new stuff  (jokes, factoids, pets etc) on the sidebar…….cause you probably won’t come back from Youtube.  

Your Comments Are Always Appreciated         

Mega-Builder D.R. Horton must have really hit the skids.  According to BusinessWeek’s Hot Property, they’ve hired on a pint-sized new spokesman for their “Short Sale Priced” communities, and I’m guessing they signed him on for less than half-price. 

Sure.  He’s short.  He’s cute.  But this little guy is far from wholesome builder material. 

 I’ll give you a hint:  he’s fresh from the courtroom trying to prevent his ex-girlfriend from globally distributing a tape of them … um …. watching TV together.  And other stuff. 

Stumped?  That spokesman is none other than…Verne Troyer, better known to many of you as Mini Me of Austin Powers fame! 

And while we’re on the subject of “short”, I’d like to use this opportunity to segue into a quick chat about a piece of documentation underwriters are starting to get persnickety about:  the Short Sale Acceptance.  I’ll be brief.   J 

When I request the Short Sale Acceptance from the listing agent in a short sale transaction, invariably they send me the Short Sale Addendum.  Not the same thing at all.

The Addendum becomes a part of the real estate contract.  But the Acceptance is an actual letter from the bank that is foreclosing, acknowledging that they agree to accept a smaller payoff than what is owed on the house. 

These letters are tricky, and they are all different.  As a lender, I’m not too concerned with the differences in the wording – but as a listing agent, it’s good to know the differences. 

 Some letters are absolutely specific, and release the mortgage and absolutely forgive the deficiency.  But other letters may state that the bank accepts the short payoff, offering a full “Release and Satisfaction” of the mortgage, but be careful here:  this does NOT necessarily mean that they are releasing the Promissory Note.  In other words, if there is no specific mention of any cancellation of the Promissory Note, there is no forgiveness of the deficiency. 

That deficiency balance may eventually find its way on to your client’s credit report.  In other words, he is saved from a full-scale FORECLOSURE, but that deficiency still shows up as a “charge off”, and the liability shows as “TBD” – making it just as hard or harder for your client to move past that problem than if they had just completed a clean foreclosure proceeding and started fresh.  

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              I VALUE YOUR COMMENTS         cg 

Zillow has made my life a living hell at times.  Clients enter their property address into the shiny, white box, see the computerized result, and then call me in a panic over what their house is — or, more often - is NOT worth anymore.

After they remove the paper bag from their mouths and they are able to compose themselves, my advice is always the same:   “CALL YOUR REALTOR.  Zillow is only a statistical anaylsis.  Without the human interpretation and expertise that a realtor can provide - Zillow is basically just a bucket of bolts.  A machine simply can’t determine the true value of your house like an experienced realtor”.

So yes, Zillow definitely causes unnecessary heartburn with homeowners - they need to be educated as to Zillow’s limitations.  But maybe it’s time to give the devil his due.  The silver lining is that Zillow can actually put a little more cash in your pocket.  And you don’t have to sell your soul.  In fact it doesn’t cost you a single penny:  Real Estate marketing guru Sara Bonert has put together an outstanding list of the Top Ten Ways Realtors Can Use Zillow.  Check it out.

                 WHAT DO YOU THINK OF  ZILLOW ?  

You came all the way over here to be entertained.  To be informed.  To pick up some perfect little piece of lending advice, or a new trick on how to push through a real estate obstacle that’s been in your face for a month.  At the very least, you wanted a dang t-shirt. 

And all you got was a construction zone. 

Well, keep the faith, Pilgrims. The new blog will be up in days with something timely, relevant, and sure to elevate your business AND your mood.

You can count on it.

In the meantime, be sure to take a couple minutes to indulge your inner control freak by actually controlling the weather with the mere stroke of a key:   did you happen to notice you can toggle between the “summer skin” and “winter skin” on the masthead of this site?  Summer.  Winter.  Summer.  Winter.  It’s fantastic.

From personal observation, I can pretty much guarantee that you’ll bounce back from summer to winter at least three times.  And when you’ve had your fill, you will find yourself sitting a bit straighter in your desk chair.  You’ll take a few deep cleansing breaths.  And in the end, my friend, you will leave here feeling a little more empowered than when you first stopped in.

Now’s your time.  Go do it.