Bank of America is Demolishing & Giving Away Homes.

Where do I sign up.  Bank of America is donating hundreds of homes in some areas and demolishing some in others.  It appears they've foreclosed on so many homes that are in terrible shape, no one will buy them.  (As a realtor, I'd like to point out that if they didn't take so long to make a decision in short sales, maybe they wouldn't have so many empty ones.)  When the house is in an area that is filled with blighted properties, it costs $7,500 to demolish them; so they clear the land and get rid of nuisance properties.  When sitting empty, a house can be used by drug dealers etc, or kids could get in them and get hurt.  Better to get rid of the problem, they feel.  Also they are donating some that are in better shape.  I think they should donate to the ones who were kicked out of the house to begin with if they are goin

Banks across the country are sitting on foreclosures no one will buy. What to do with them?

By Kim Peterson on Thu, Jul 28, 2011 2:58 PM

Bank of America (BAC) is sitting on loads of foreclosed homes that it can't sell. Instead of holding on to them endlessly, it's starting to bulldoze some.

In other cases, the bank is simply giving them away.

The bank is donating 100 foreclosed homes in Cleveland, Bloomberg reports. It will give away as many as 100 homes in Detroit and 150 in Chicago, and plans to add up to nine more cities by the end of the year.

Some foreclosed properties are so blighted and uninhabitable that the bank will pay to have them destroyed. A bank spokesman said some in this category are worth less than $10,000. Bank of America will pay up to $7,500 for demolition. In other areas that could receive federal funds, it will pay $3,500 for demolition.

The land could be used for open space or urban farming, Bloomberg reports.

This is a big problem for banks across the country. These houses are not acceptable for occupancy and no one will buy them. They're a huge weight on the banks' books, and no one knows what to do with them.

Wells Fargo and Fannie Mae are donating houses and demolishing homes in Ohio, Bloomberg reports. In the big picture, removing these homes will decrease the housing supply and help the market recover. The banks could also get some tax advantages and a small bit of badly-needed public relations help.

< Bg to donate them - oh, what am I saying, that would be paying people to NOT pay their bills.  I take it back.  In case you think I'm making this all up, here's the original story:

Day in the Life of a Realtor

I just had a realtor call me all freaked out.  She had a seller call and say they were not going to their closing because their Hud sheet showed $17,000 net instead of the $21,000 net she had expected; further she was not going to pay any realtor's fee.  Needless to say this realtor was NOT happy.  This had been a long, drawn out sale, which included this seller buying a new home from the same realtors and getting a discount on that home because she was selling with them also.  Now she was threatening not to come to closing at all. 

At the same time, I too had a complaint about a client and was sharing my problem.  So just while thinking about blogging, I thought, Why not share what we do all day so people know how we earn our money!!

How to get started seemed the big problem.  Do I start with one particular event, like a listing, or do I cover my day from 7 a.m. to 9 p.m.  Let's just look at a few regular days.
But first, let's go over the $$$ thing.  A realtor usually gets zero if someone doesn't buy a house from them or if the realtor doesn't sell a listing.  Would you take a job like that;  that means you might work 18 hours with one set of customers and then they find a realtor at an open house they like, and switch.  The fact you've spent time and gas on them and have earned nothing financially, doesn't bother them.  My husband often says, "Oh, the life of a realtor."  You could market a house for 4 months, spend hundreds of dollars on advertising, lots of money on open houses and gas and flyers, etc., and the house not sell because the seller won't lower the price to what the market will pay.  

Then another misconception is that the realtor gets 6%.  Every 2 party sale is split 4 ways.  Realtor A represents a seller who sells a house for $100,000.  Realtor B represents the buyer.  The fee is $6,000.  You then give Realtor A $3,000; and Realtor B $3000 and then they split with their broker.  So the person who marketed your house for months, being at your beck and call, dropping everything to show your house at a moment's notice, putting her own family on hold, gets $1,500, and if it took four months to get it sold, she made less than $400 a month.  Would you work for that salary, knowing it's not a proven thing.  That house may not sell no matter how good the marketing, price and location, because the right person just doesn't come along, but that realtor gets nothing for their time and expense. 

So why would a person take such a job?  Because they enjoy real estate, people, helping people reach a dream, the unpredictability and excitement of each day being different.

So now it's time to take you through a realtor's typical day.  Sorry, I can't.  The very thing that makes the job interesting, the unpredictability makes it to where there are no typical days.  Now there are some routines that exist, like open houses being on certain days at certain times, training and tour days, but all in all each day is unique and different.

One Saturday I gased up my car, went by the office and made a folder of things to do in Amarillo, including a current map, and then I picked up a lady I'd never met at 10 a.m.  She had moved to Amarillo and used a different realtor when she bought a house; however, her company has a contract with a relocation firm that my company services, and she was entitled to a tour of the Amarillo area.  I was paid a small fee to take her on a 4 hour tour of Amarillo.  She wanted to see things she could do with her small children.  So we went to the 3 parks in Amarillo, the zoo, amusement park, 2 libraries, shopping centers and malls, eating areas, post offices, golf courses and disk golf course, and then we still had time so I took her out to Lake Tanglewood.  I dropped her off at 2 p.m. at her doorstep, went back to my office, and got another folder.

I had an appointment at 2:30 to meet some out-of-town people who I had met at an open house.  I'd been communicating by email with them, sending them listings that met their criteria, and they had come up with a list of 20 listings to visit.  The previous afternoon I had run off all the listings, called all the other realtors and set up appointments, run off the Potter Randall Appraisal sheets on each listing, and now I fixed them a folder, put in a notepad and pen so we could keep notes.  They met me on my parking lot, we got in my car, and the tour began.  We saw 15 houses during that afternoon and evening, stopping for about 30 minutes to get a Wendy's hamburger.  We didn't nail down one particular house, but several were put into the running.  We named each house by a particular feature that set it a part and rated it on a scale of 1-10. (Example:  one was the blue kitchen, and one was the swimming pool house)  They didn't share those ratings with each other, but I did find out later that he had several 8's and they were newer homes; and she only had a couple of 8's and they were older large homes that needed remodelling.  They left to go back home at 9 p.m. planning to put their home on the market, and we'll keep in touch. 

Later the next week I found a house that seemed to be like the ones she had rated 8, a new listing at a fantastic price.  So I sent her a note by email.  It turned out she was in town at that moment, saw the email on her phone, and called me to show her the house. 

I had had an open house that Sunday after I showed them the 15 homes.  A wonderful carpet store had loaned me an expensive silk rug to place in my house I was sitting at.  So I had gone by the house, saw the carpet was still in the home, and had run by the store to see about getting them to pick the rug up.  When I came out of the house, I got the call from the lady to show her the new listing I had just sent her the email about.

On Sunday night after I had the open house, I had gone to a friend's home and listed her house, measured all the rooms, and made plans to show her a condo the next days.  On Monday I went back to her house and took pictures, put the house pictures into mls, did the paperwork for the secretary to get the property listed, and tried to make arrangements to get a professional photographer to do my virtual tour. After 5 I showed her 2 condos.   On Tuesday I had decided to do the virtual tour myself.  I atttended a class for 2 hours and then spent the afternoon doing the virtual tour, getting it on multiple websites, sending it out to various people. 

On Wednesday my office went on tour of all the new listings, from 9:30 to 11:30, after having a guest speaker at our Wednesday morning sales meeting.  At 11:30 we got back from the tour, and I went to a class for 2 hours about Contracts and Closings.  After that I prepared mailouts about the new listing to send to the neighbors letting them know the house was on the market.  I did my social media stuff:  twitters, blogs, facebook.....as you can see, no two days are the same.

During those 5 days did I make any money?  No, but was preparing the way for it - except the tour, I did get paid for that.  However, on Thursday, I had a closing on a sale I made back in June on a listing I had listed in November.  So 8 months of marketing resulted in a paycheck.  That is how it is.  No set paydays, no hourly wage, and it can take months to see any results from your work.  But when all is said and done, a person who chooses to do this job knows about this aspect of the job, but they get such joy from seeing someone's face light up when they see "that perfect house" and when "the contract is accepted" that it is worth it.  Plus it keeps life exciting.  I love what I do.  I love the fact I can stop and go get my 88 year old mom and take her to eat with me or sit in an open house with me.  I love that I can take off and see my grandkids once a month and not have to have a bosses' permission.  I love the people I meet, the people in my office, and even the other realtors who are my competitors but also who work with me to make 'deals" work.  All in all, it's a emotional job, an exciting job, and one I love. 

National Association of Realtors: Why?

Our NAR magazine asked why is there an NAR?  You'd think they knew.

They did, and they gave the following answers:

1.  To advocate for the conditions and policies that will keep real estate business vibrant.

2.  The de facto advocate for 75 million Americans who own homes, 310 million Americans who require shelter.

3.  NAR is the champion of private property rights; and to our global partners around the world, it is a role model and a facilitator of international business.

4.  Without organized real estate, both the industry and the concept of private ownership in this country would be diminished.

Challenges today include banks making lending and shortsale decisions; to regulators and legislators who set our tax and housing policies; to the companies that would like to commoditize what we do for their profit. 

Goals of NAR:  1.  Helping to establish a successor to Fannie Mae and Freddie Mac that will preserve the secondary mortgage market;  2  protect the mortgage interest deduction and other tax incentives that drive home ownership; and 3 defend the principles of sound underwriting versus government-imposed mortgage qualifications.

So all in all the National Association of Realtors is on the cutting edge of protecting your rights to home ownership, my right to sell homes, and everyone's right to participate in the free market system.  Let's hear a cheer for the NAR!!

Nervous Investors!!

I've probably not been nervous enough.  I'm kind of a risk taker and back in 2000 when I was day trading,, I paid for that!!  While grocery shopping one day, the market crashed and I pretty much lost everything.  Stayed out of the market until 2005 when I sold some real estate and then I went back in, and have been giving my investment counsellor, Kyle Vest with Edward Jones, gray hair ever since, as he's a lot more conservative than I am.  I thought about jumping ship and freeking out in 2008 when recession hit, but I stayed calm, trusted him to re-arrange things a little more conservatively, and then last year went back to my riskier investments.  I'm happy with my results, and I do agree with the article I'm about to put on here, don't check your accounts too often, as you will find yourself having more pain with down times than glee with up times.  I check in about every other month.  Usually its a nice surprise, only once in the past 2 years has it been a painful experience.  Here's the article.  Let me know what you think.

Risk and the nervous investor

By Sheyna Steiner · Bankrate.com

Friday, July 22, 2011

Posted: 11 am ET

When it comes to investing there are many types of risk -- liquidity risk, interest rate risk, inflation risk, just to name some of the biggies. But the one people think of most when talking about risk is market risk or volatility. It refers to the ups and downs that move stock prices on a daily basis and is represented by a stock's beta.
The Standard & Poor's 500 index has a beta of one. Stocks and stock mutual funds with a higher beta tend to gain more and lose more than general market. Those with a beta of less than one tend to move less.
Short-term volatility dominates most stock market coverage in the news and can lead to unnecessary skittishness for some investors and that can hamper long-term growth.
Advisers can also unwittingly focus too much on the short-term in their quest to manage risk, according to a blog post this week on Advisorone.com, "What behavioral finance teaches on how to discuss risk with clients."

The reason for this over-emphasis on controlling volatility is explained by behavioral finance. In the well-known research paper “Myopic Loss Aversion and the Equity Premium Puzzle” authors Shlomo Benartzi and Richard H. Thaler examine investor appetite for stocks and bonds given the historical discrepancy of their returns. While stocks have pulled in annual real returns of about 7% since 1926, according to Ibbotson research, Treasury bills have earned less than 1%. Such a large chasm in performance raises the question: why would anyone prefer holding on to short-term bonds?

Their answer: Losses hurt more than gains feel good.

Monitoring performance at too-frequent intervals often leads to irrational and unnecessary volatility worries. The net result of these behavioral patterns is too much time spent thinking about and feeling the effects of the downside and not enough thinking about potential gains, despite the fact that gains are what will ultimately lead investors to meet their financial goals.

Of course investors with a short time horizon do benefit from more zealous downside management -- that's why the portfolio of a retired 80-year old will be quite different from that of a 30-year old worker.
One solution that addresses the many different types of risk is a solid asset allocation plan and diversification.
What do you think?

Read more: Risk and the nervous investor | Bankrate.com http://www.bankrate.com/financing/investing/risk-and-the-nervous-investor/#ixzz1SyU2foat   I'm the one Tweet.  Where is everyone.  This is a great site.

Housing Trends for Summer 2011

Just read this article on bankrate.com, a site I frequent.  Here is the gist of their article and my view of it.

1.  Interest rates are historically low.  You need to jump in and not wait for them to get lower, as it is predicted at end of summer they will start to rise IF our economy shows improvement.  You know I got a new car this year at 0% interest.  If you are waiting to get a house for that - DON'T.  It isn't going to happen.

2.  Owning is getting to be cheaper than renting.  I agree, but sometimes NOT.  Because you get to take off mortgage interest and property taxes from your IRS return, that is a nice tax break.  When renting, the landlord gets that break and you get to pay it for him.
But if your sewer line plugs, or the air conditioner breaks on an "owned home" you get to fix it, and while renting - just call the landlord.  So those two may outweigh each other.  The beauty of ownership is that you can paint, wallpaper, carpet, tile to your taste.  If you want to tear down a wall and put mirrors on the ceiling (WHAT!) that's your perogative and you don't have to get permission.  However when renting, once the lease is out, you can pick up and move.  With a house, you are stuck until it sells or until you decide to rent it - which isn't so bad.  Rental market is 97% right now, and I'm sure you could get someone in there within a week at the rate things are moving.

3.  People have been slow to buy for several reasons.  Scared of falling house values.  That could be a good reason to buy.  What goes down, usually comes back up - like the stock market.  Remember 2008 and the market dropped and everyone said they lost their retirement and sold everything they could?  I didn't.  My philosophy, readjust to safer things but I bought.  Today I'm basically where I was in 2008, except for what I've taken out to live on and make a down payment on that new car.  (Stupid thing to do.  I should not have taken it out for down payment as it was making me money and the 0% car loan isn't costing interest - but I was thinking of size of monthly payments).  Back to housing.  People are slow to buy also because it's harder to get a loan; however, yesterday I got an email from man at First United Bank and he says they are lowering conventional FICO score from 640 to 620; that's good news. 

4.  Renting is increasing.  Yes, all those people with FICO below 640 haven't been able to get a loan, so they have to rent, no choice in the matter.  Those who got into debt and lost their homes, have no choice but to rent.  Wah lah.  renting is increasing.  You don't have to be a rocket scientist to understand this little detail.

5.  If you are willing to do a little "remodelling" you can get a great deal on a house.  Repos are usually not in the best of shape.  Funny, but people get mad at banks when they say they are taking back the property because the buyer didn't pay what they said they'd pay.  I don't understand this.  If I borrowed $50 from you and said I'd pay it back next week, and I didn't, you'd be the one mad, not me!!  But people get mad and do bad things to homes before the bank takes them back.  I went in one in San Antonio where the people cut the electrical lines on the box, kicked in the siding all down one side of the house, kicked in one hole in every single wall of the 2 story house and took the doors off the closets, and then if that wasn't enough, they poured oil down the carpet on the stairs.  NASTY.  My daughter and I wanted to wash our hands for sure after visiting this little beauty.  So expect work on a repo, but golly gee, they are selling for 30% lower than a regular house.  Say you buy a $200,000 house for $60,000 less.  Could you do a little clean up and repair for that and be able to put the colors, carpets, tiles, etc you want and still probably have a "deal".  So look for the deals when you are house shopping and line up those carpenters!!

Now #6 is a little hard to remember all the figures, so I'm pasting their words here.

»

Jumbos are coming back

6 of 6

I'll be honest, I've not dealt with any jumbo loans, so my opinion is not that great.  You know in Amarillo, TX, those type of deals are rare so the main thing I got out of this is that they are lowering the amount of a loan that is now considered jumbo, so what was jumbo before will stay jumbo and what wasn't may become jumbo, and that sort of goes along with my tummy.  It wasn't so jumbo 10 years ago, but as time goes on it's getting there. 

 

Well, that covers the trends article and my opinions.  But the bottom line to me is, this is the time to buy.  Rates are low, down payments for FHA are only 3.5 and Conventional 5% if you have a 620 FICO score, rentals are hard to find (I know because I' m a realtor who has a connection with a relocation firm and I help people find rentals.  If you are moving out of an apt on Aug. 1, you must give notice by June 30.  So June 25-30 were prime times to give that notice, and the apts were usually re-booked within 24 hours of the notice being given.  So people I am helping now are looking for move in afer Sept. 1, and its July 22 today.  It takes about as long to get into a rental as to close on your own house loan, maybe longer)  With house prices lower than they were 5 years ago, rates down, lenders ready to lend, carpenters ready to pound nails and lay tile, it seems like a given - buy a house!!

Credit Score Secrets

Do you want to raise your credit score?  Have you ever been turned down for credit and wondered why?  After all you are a dependable person, one who pays their bills on time.  How could they turn you down?  Right!!

Here are 6 things you may not have thought of that could lower your credit score:

1.  Credit inquiries stay on the books for a year.  So don't apply for several cards a month apart.  Don't get a Sears in January, a Penney's in February and buy a car in March.  Do it all at once because within a 2 week period they know you are shopping around.  Do all the credit cards at one time and all the car shopping at one time.  But remember if you are applying for several credit cards, it may look as if you are underwater and wanting new cards to pay debts. 

2.  Everyone needs at least 1 major credit card.  But  you believe in cash!  That's good, but let's say you fly into San Antonio to see your grandkids and want to rent a car for the week.  Without a credit card, a rental store won't let you drive off the lot with their cars.    I use to have a mother-in-law - yes, she is no more, she left when her son did--and she wanted to buy a car.  She had always paid cash, but this time, it was going to hurt because it was a new car - not used as in past, and taking $25,000 out of savings is HARD.  So she decided this one time she'd use credit.  Guess what, she had no credit score.  She'd NEVER bought anything on credit (wish that was me).  So her son had to go on her loan since he had a lot of credit until she built up her own by making the payments on the car.  Eventually she just paid the car off with money from savings, and her credit score bumped up real fast.  I think she can buy anything she wants now for credit.

3.  Don't cancel cards.  I know, you're saying but we only need one major one.  Yes, but if you cancel, it actually makes your score go DOWN.  Instead cut them up and throw them away, or hide them from yourself so you have to really need them to find them. 

4.  Don't let an account get 30 days overdue.  It'll go on your record, and down will come the score.

5.  Never use over 30% of the balance allowed, and 25% is preferable.  The more you owe lowers your score, and you could be one layoff away from disaster.

6. Don't co-sign for someone else.  The debt is added to your records, which lowers your score, even though they are the ones paying it.  If they get laid off and default, then you will be held responsible for their debt and you might just have to default too.

Remember, if you get turned down, they have to tell you why.  A new law even says they have to explain it better than ever, what is on that report that sunk your boat.

Never, ever lie about your score, as it's just too easy for them to check.  Be honest.  If you were sick and missed some payments, don't try to gloss over it.  Be honest and above board, and who knows, they might have gone thru the same thing themselves and actually have a heart.  Honesty is always the best policy.

Texas Man Spends $16 to live in $300,000 Home

OK, So he says by law he can live in this home because the real owner walked away and the loan company folded.  Neighbors are angry, police won't kick him out, he has no utilities.  Will he keep the house?

Texas squatter claims $330,000 house, police can’t remove him

Tara Steele | July 16, 2011 | 97 Comments

No trespassing sign photo by Andy Arthur.

A $330,000 home for only $16

In an upscale neighborhood in Flower Mound, Texas near Dallas, a man is living inside a home after filing a $16 form at the Denton County courthouse.
Waterford Drive is a neighborhood of luxury homes in the $300,000 range which for Texas is a considerably higher price point than the median (here are the recent listings in Flower Mound for reference).

Homeowner walks away leaving it vulnerable

Neighbors say the house was in foreclosure for over a year when the owner finally walked away from the home. When the mortgage company went under, it left the vacant property vulnerable to what Kenneth Robinson refers to as the “adverse possession,” a law he cites as giving him rights to live in the home where he has been since June 17.
Robinson says he is not a squatter, rather his internet research led him to a form he could fill out and file at the County, a process he claims is completely legal and “not normal” but notes that just because it isn’t common knowledge doesn’t mean it isn’t legal.

No electricity, no water, a three year loophole

The form he filed with the County says the home was abandoned and he is claiming ownership of the house despite having no electricity or running water, but a few of Robinson’s pieces of furniture and “some things here for my own protection,” he said.
Robinson claims the presence of his belongings gives him exclusive negotiating rights with the original owner, according to Texas law and if the owner wants him out, he would have to pay his mortgage in full and the bank would have to file a “complicated lawsuit,” neither of which Robinson believes is likely.
Texas law does state that if he stays in the house he can petition for ownership in three years, possibly obtaining the full title free and clear which is Robinson’s goal.

Why police cannot step in

Neighbors called police to arrest Robinson for breaking in, but he claims he “found” a key to the house and legally entered. Police said they cannot remove him from the house because ownership is a civil, not criminal matter.
Robinson has posted “no trespassing” signs saying “at this point, because I possess it, I am the owner.”

Intending to live mortgage free

Neighbors continue to seek out legal ways to remove Robinson or petition that he pays for the house like any other owner. They have sought counsel from the mortgage company that folded, local Realtors as well as attorneys as they believe he broke into the house, invalidating the loophole currently allowing him to live mortgage-free in the home.
Robinson says he will not buy anything or pay a dime, as the $330,000 house is already his because of his $16 courthouse document. It is unclear how he will be held responsible for taxes in this property tax state should he ultimately gain the title to the property, and with heightened awareness by local news, it is possible an attorney will find a loophole to the loophole, but property rights and squatting in Texas is a more complicated matter than in many states.

Did you like this?

Dry all over USA and HOT

Texas A&M Researchers say we are now the dryest ever in our history as far back as records are kept.  Also we are hot!!  One man put several tons of ice in a swimming pool at an amusement park to cool it from 88 to 82. 

Several places are opening "cooling centers" where those without air conditioners can come to cool down.  Not a bad idea, but are shopping centers kind of that already!!

So I feel bad:  I was wearing a blanket in my office this morning because I was cold.

Debt Ceiling Issues.

Just read an question/answer article on another blogger's blog where someone asked if their home value would drop if the debt ceiling isn't raised.  I didn't really bother reading their answer, it was long and involved, but I don't think she should worry.

First, I called my investment guru Friday, and he says they always raise it at the last minute.  It's a bit of a show to get us all thinking they're finally going to be frugal and take care of our money, but really they'll just keep raising it.

Second, I read where Boemer (I think that's the crying Republican's name) said he'd vote to raise it if the Democrats would among other things vote to have a balanced budget amendment.  They are in talks to consider how to word it.  Politics!!  that's all they are doing, is playing at.  After all a spokeman for Obama said that no one but those in Washington care about what is going on there.  He thinks we Americans are so busy living our own lives, trying to balance our own budges, making a living and just being stupid rednecks, that we don't really watch what they are doing.  If they think that, we need to show them in November that we all listened and vote all incumbents who are up for re-election bye bye, and get a constitutional amendment that no one can make a career out of spending our hard earned money.  Two terms is plenty, and NO retirement.

OK I'm on my high horse here, but I'm passionate about this, and another thing, I actually heard Obama say if they didn't raise it, the social security recipients wouldn't get their pay checks.  EXCUSE ME, that is their money; they put it in the system. The govt. doesn't have the right to use it for paying their debts!!!  We are required to save for retirement thru this system, and they should be required to secure it in investments that grow and is always there for us. 

All right, I've gotten it off my chest.  I do feel better.

AMARILLO, TEXAS, OPEN HOUSE NEWS

OK, I know I used a weird headline, but trying to get "keywords" noticed. 

I'm excited about my open houses this week:  1.  3615 Paramount, 4 br, 3 bath, 2390 sq. ft. sunroom, sprinkler system, new oven, wood floors, country kitchen, huge dining room 16 x 13: priced at $172,000.   Why am I excited?

Stubblefields, a carpet/tile/wood floor store on I-27, is LOANING me a huge silk area rug for my dining room.  This rug is on sale for $599, and they are not only loaning it to me, but delivering it.  They are the best.  Last year they loaned me 8 rugs for our weekend extravaganza, delivered and picked up.  Wow, what a great bunch of people.
If you need ceramic tile (I've bought there several times), carpet (I've bought once), or wood floors, go by and give these nice people a chance to beat anyone else's prices on quality products.  THANKS, STUBBLEFIELDS.

2.  5127 S. Crockett.   Jeremy Hunley of Caprock Inspections is going to be at my open house to answer questions about home inspections and insect extermination.  He has inspected quite a few houses for me and has sprayed my personal home for insects.  I was very pleased each time with his professionalism and quality of work.  Come by and get a coupon to have some work performed by him at a discount. 

This house is a total of 2024 sq. ft in a "full basement" house.  Upstairs you have 3 br, lr, new bathroom, new kitchen complete with new cabinet, new microwave and dishwasher, plus new cabinet tops, sink and plumbing.  The bathroom is also new with a beautiful vanity and new plumbing in bath facilities and laundry.  This level has great wood floors, fans in the bedrooms, new texture and paint, a single car garage with new sheetrock, door and door opener. 

In the basement is a huge 38 x 12 den with built-in shelves, 1 br, 1 new bath, and an office.  This basement has new windows which lets in light.  New carpet is on the floor and it sports a new a/c, heater, hwh, and sewer/gas lines.

MEN there is a SHOP, 24 x 28 with 10' ceiling and floored attic.  Outside the shop and house have new siding, along with a new patio, new fence set in concrete footings all the way around the yard with 3 gates.  This house is like a new home in an old neighborhood.  YOU MUST SEE INSIDE to appreciate.  Priced at $129,900, it's inexpensive for a large family. 

I'll be at Paramount, and Jeremy will be at Crockett, and we will have door prizes at both, plus the coupons, so please come see both of these magnificent homes.

Being Nice to Bad Loans Doesn't Help Sometimes

Here's part of an article from July 15 says that a lot of people getting their mortgages revamped, meaning the terms changed to make them easier to pay, has NOT worked:

Roughly 25% of the mortgage modifications Citigroup (C: 38.38 -1.64%) completed through its own private programs redefaulted over the past two years, the bank's Chief Financial Officer John Gerspach said Friday.
Over the past nine quarters, the bank converted $5.7 billion in a trial modification into permanent status. More than three-quarters of these went through the government's Home Affordable Modification Program. Redefault rates on these HAMP workouts totaled less than 15%.

I guess this means you ought to only borrow what you think you can repay easily.  Too many people got "no principal for 3 yrs" loans at the top of what they could pay when only interest payments, so when 3 yrs kicked in and principal also was added to the loan, they couldn't afford the payments.  I thought these were silly loans while being made, and so happy our local banks weren't foolish enough to make these loans.  That's why Amarillo hasn't had the number of foreclosures the rest of the country. 

Would like to know what you think, comment please.

OLDER AMERICANS WANT FINANCIAL SECURITY--WELL DUH!!

Here is an interesting article about a topic that touches all of us - our pocketbooks.  The gist is that older people are interested in financial security.  I think younger people are too, but for those of us getting close to retirement, the ups and downs of the market can cause stress, heartbreak, insecurity, panic, heart attacks - you get the drift??

Well, here's is what the survey said:

Older Americans Want Financial Peace of Mind

Wednesday, July 13, 2011

By Brad Finkelstein

Financial peace of mind is now six times more important than accumulating wealth to Americans 55 and older, with 82% saying it is their key financial goal, a survey conducted for SunAmerica Financial Group found.

Almost two-thirds of respondents said they want investments that are guaranteed not to lose value and 60% seek to protect their income from market loss.
SunAmerica president and chief executive Jay S. Wintrob said as a result of the economic downturn, "the appetite for risk has clearly diminished. As Americans approach and enter retirement over the next decade, their need for asset protection, risk management and lifetime income solutions will take on even greater significance."
The survey found that nearly half of those who are retired did so earlier than they had planned; of that group, 41% did so because of unexpected health problems and 19% due to a loss of employment.
Nearly half of the respondents used a professional financial advisor to assist with their retirement planning, and two-thirds of them believe their advisor was very helpful.
One issue facing those at the younger end of the survey participants is "unexpected multi-generational family assistance." They have to balance their own retirement planning with the possibility of needing to support their aging relatives, adult children, grandchildren and/or siblings. Nearly half of the respondents said they expect to have to support one or more of the above, with 7 in 10 believing they will need to give their adult children financial assistance; 62% expect to do the same for the grandchildren.

--------------------------I guess I fit this.  I'm not helping mom financially, but with billpaying and keeping up with her records.  My kids are self-supporting; thank you Lord that they are responsible adults.  Grandkids:  would love to set them up with college funds, but when all is said and done, I'm thinking how do I pay for my husband and mine living expenses if we live another 35 years or so.  I want security, I want peace of mind that we won't be on the street.  So yes, I'm part of this survey.  How about you.  leave your comments.

GET PAID BY MORTGAGE INSURANCE??

HERE'S AN INTERESTING ARTICLE ABOUT HOW MORTGAGE INSURANCE COMPANIES WILL PAY YOU TO STAY IN YOUR HOME RATHER THAN LET IT BE FORECLOSED ON IF YOU ARE UPSIDE DOWN IN VALUE/LOAN.  IT APPEARS TO ME TO BE A WAY TO GET 30% OF YOUR LOAN PAID OFF.  COULD THE DEVIOUS TAKE ADVANTAGE OF THIS?  READ ON:

Private mortgage insurer PMI Group (PMI: 1.43 +6.72%) will offer cash incentives to some homeowners in negative equity to help prevent mortgage defaults.
PMI subsidiary, Homeowner Reward is working with Loan Value Group, to administer the pilot program, called Responsible Homeowner Reward.
The program launched Monday and will start in select real estate markets where falling house prices left borrowers owing significantly more on their mortgage than what the property is worth.
Participation in RH Reward is voluntary and there is no cost to the homeowner, according to PMI. The cash will come after a lengthy period of keeping the mortgage current, generally from 36 to 60 months. According to PMI, the reward will be between 10 to 30% of the unpaid principal balance.
The Loan Value Group works "to positively influence consumer behavior on behalf of residential mortgage owners and servicers," according to its website.
LVG programs already delivered more than $100 million in cash incentives to distressed homeowners. However, those programs focus on turnkey solutions such as cash for keys, with an aim to avoid principal forgiveness. The Homeowner Reward program is taking a different path.
"We continue to seek creative and effective loss mitigation strategies," said Chris Hovey, PMI vice president of servicing operations and loss management. "PMI is especially supportive of homeownership retention efforts in states that are facing unprecedented housing challenges."

HOW ABOUT THOSE OF US WHO ARE CURRENT AND NEVER THOUGHT ABOUT FORECLOSURE.  CAN WE GET PAID?  I WELCOME YOUR COMMENTS.

STORM SHELTERS GAINING POPULARITY

BottomLine,   a magazine I love and subscribe to, has a great story about in-home storm shelters.  They say they are gaining in popularity because of  all the severe weather in the South and Mid-Atlantic areas of the US which have caused death and destruction.

I know when my kids were little, one of my sons was petrified of storms.  He use to hop the block fence at the back of our property in storms to go to our neighbors to the east of us who had a basement.  Mrs. Naslund was the neighbor, and she knew he had this fear; so whenever there were clouds, this gracious neighbor left her back door unlocked for my son to enter and head downstairs.  Later after my divorce, I wanted to buy a new house and make new memories with my kids, and I asked each to make a list of what they wanted; and, of course, this son put basement as his top priority with basketball court with room for 2 goals, coming in a close second.  I believe he was the last child to move out of our home because he felt so secure knowing that we have not only a basement but it's a bomb shelter and could probably withstand a lot more bad weather than a regular basement.

What about this article?  They say five (5) person storm shelters cost between $5,000 and $6,000 each, plus installation, and state these are 5 feet high and 5 feet across.  They are designed to be buried underground.  My parents had one of these shelters in their backyard except it was larger, so my kids felt safe visiting Grandma and Grandpa during storms.  It also served as a good storage facility for lawn furniture during the winter months. 

I remember one time mom and dad ran to the shelter during a hail storm, and once they returned home, they found all their skylights broken and water every where.  They had just put on a new wood roof six months earlier, and they got another one from this storm.  I was glad they had the shelter to protect them from the noise, the water, and the hail during that storm.  I was pretty sure during this storm while at my own house that they were protected because of this backyard cellar.

The article also says that shelters for garage installation are available for the same price.  The good thing about these, they can be relocated if the people move later.  I've seen some of these in my real estate career, but never heard of anyone taking them with them.  It usually becomes a selling point for the realtor's listing. 

The article says there are a wide variety of storm shelter sizes and types:  aboveground, belowground, wood, concrete, steel.  One thing to consider is accessibility when deciding which design. 

When you go to buy, look for a company with a seal from the National Storm Shelter Association (NSSA) which certifies that the shelter adheres to safety standards. 

Personal memories about storm shelters>  1.  When 5 years old, I lived at a gas plant called Turkey Creek; and during one terrible storm, all the families in the camp congregated underground during the storm.  Later we learned one child had mumps, and within a few days, I had mumps and several other children of the families who worked at that plant also had contracted mumps.

 2.  From the age of 5 to marriage, I lived at Fain Gas Plant where daddy was the superintendent.  There were 16 families who lived there, and we had a cellar that all the families fit in.  Whenever the plant blew the storm warning, the families would hurry to the cellar.  The children and wives would go down and take seats on the benches which lined the walls.  The men, they'd stay at the top of the stairwell with the door open watching the storm.  If they saw a tornado, down would come the door.  It was strange, but because of the lay of the land, tornados tended to "hop over" our camp.  To this day I don't know why it was called a camp, as we had real houses, garages, a park, basketball and tennis courts, and paved roads. 

3.  During the time at Fain, with the huge cellar for 16 families, the concrete on the top was aboveground.  This cellar was directly north of my house by a large water storage tank that was probably 40 feet off the ground.  Boys loved to climb the ladder to the tower, and were constantly getting in trouble with parents.  But the main memory is the top of the cellar was our roller skating rink.  We went round and round and round.  I miss those days.

4.  Now with my bomb shelter, I leave the front door unlocked during storms, as my neighbors come over and join us.  Sometimes they come while the garage door is still open and we are out looking at the clouds judging whether to go down or not.  One of them lost their first home after marriage to a tornado, so they love our basement.  But if you think this endears us as neighbors, during the 8 years I've been here, other than storm days, I've probably had fewer than 10 conversations with any of them. 

Well, living in tornado alley, I'd say $6,000 investment in a storm cellar for the protection of your home is not much to pay.  If you are building a new home, build a basement and enjoy the space as a theatre or gameroom, and have the benefit of using the space at times other than during storms.  My husband keeps his cats in our basement, as I'm allergic to them; and he keeps his exercise equipment down there so he has reason to be with the cats and no smelly gym odors fill the house when he's working out.  I on the other hand, with cats down there, only go to the bottom of the stairwell and sit during storms. I don't get the benefit of the bomb shelter, just  the safety of being underground.  Hopefully I'm being protected too.

Well, I hope this blog has been informative as well as entertaining, and that if you are considering finding protection from storms, you will know it is not a weird notion but very popular.  And if you are looking for such a home, I happen to have a full basement home for sale for $129,900.

The article in BottomLine was written by Ernst Kiesling, PhD. professor of civil engineering at Texas Tech University,  Lubbock, TX  and executive director of NSSA.  You can reach him for further information at http://www.nssa.cc/

Six Credit Report Items That Scare Lenders

Just read this great article about what could be bringing a person's credit score down.  Found it at Bankrate, Inc.'s website and it was written by Dana Dratch.  Here are the 6 in a nutshell:

Her opening:  "You pay your bills on time and never miss a payment.  if you're still having trouble with credit, something on your credit report could be scaring lenders.  Everyone knows the big gremlins that haunt credit reports: bankruptcies, foreclosures, missed and late payments."  But less dramatic items can also spark some anxiety in skittish lenders.

1.  Opening 1 new account is normal, but if you open several in a small amount of time, that signals that there could be problems with your finances.  Companies are now monitoring you monthly or every other month, and the one thing they do NOT want to see is you asking everyone in town for a loan. 

2.  People are told short sales won't hurt their credit as much as a foreclosure as you are just settling the account for a lesser amount than originally agreed.  Actually it is as negative as a foreclosure!!  They gave the tip to negotiate with the lender to NOT report the difference between your mortgage and what you repaid as "balance owed" on your credit report.  Your credit score will take a heavy hit, but doing it this way will slightly soften the blow.  Do not discount the notion of a short sale, just go into it with your eyes open, she said.  You will get out of the house, move on with your life, but there will be an impact to your credit history.

3.  When you co-sign on someone else's loan, the whole debt goes onto your credit report.  Potential lenders could be concerned that you are carrying too much debt, and it will be included in your existing debt load when you apply for a mortgage, credit card or any other credit.  If the person you signed for is late or misses payments, that too goes on your credit report.  Co-signing does "Not play well in the underwriting office".
For those who don't know what underwriting is, its the mortgage insurance company that insures your loan to a lender if you forfeit and allow the house to go into foreclosure. 

4.  Even though there is a minimum that credit cards allow you to pay each month, it is not looked at favorably if you do pay just the minimum each month.  "It suggests you're under financial stress."

5.  Having your credit report checked too often lowers your score. "Every time you allow a potential lender to pull your credit report, your score can take a small hit."  She advises if you are applying for a home loan or new car or student loan, do all the inquiries within a two-week period and those checks will be lumped together as one.  There is no similar grace period for credit card applications however. 

6. Cash advances on credit cards "indicate desperation".  It suggests you might have lost your job or gotten yourself into too much debt.  It suggests you are "borrowing from Peter to pay Paul". The cash advance is immeidately added to your debt balance, which lowers your available credit and can lower your credit score and all potential lenders will see your score.  Regularly credit card companies will pull your credit just to see how it looks, and if you've taken on alot of new debt, they may slash your credit line or raise your interest; should this happen, that further lowers your FICO score.

I thought this was a very informative article, and wanted to share it with you; as I was unaware of a few of these things, and I've had customers wanting to buy houses who did not understand why their score was low.  Maybe this article will help us all understand better how the credit score business thinks and operates  and help us not make mistakes that sinks "our credit score" boat.

Steps to Buying a House.

I get lots of calls from potential buyers who say, "I've never bought a house and I don't really know how to get started."  So here follows some of the steps to buying a house.
1.  Get prequalified by a lender.  This does not get you the loan.  It takes about 5-15 minutes.  All it does is say what amount of loan it appears you could qualify for.  Later when you get a contract and they get more information, you will get preapproved.  Approval comes at the end after underwriting gets all your information. 

A prequalified letter from a lender, lets a broker know you are serious and not wasting their time as they show you house after house.  Further, it tells a seller that your offer is serious and you will go through with the loan process. Best of all, it tells you what price range to stay within so you don't look at nicer homes than you can actually afford and waste your and the broker's time, and gets your hopes up for something not within your means.    THIS STEP IS UN-NECESSARY IF YOU ARE PAYING CASH FOR A HOUSE, BUT VERY FEW OF US CAN DO THAT!!

2.  Pick a realtor to work with.  Why?  A realtor has access to all MLS listings.  You can find something you like on line, but you can't get in to see it without a realtor.  But that is not the only reason.  There is a lot of paperwork involved in buying a house.  I've written as many as 4 contract offers for the same customers, each one was 9 pages long plus the third party financing addendum which is 2 pages and the non-realty addendum.  Further you might have lead based paint addendum, addendums to change closing dates, or to make repairs, etc.  Do you know how to fill these forms out?  A lawyer could help but at what cost per hour.  A realtor is trained to fill these forms out and to know which ones to use in each situation, and they charge you nothing.  The seller pays their fee at closing - unless you chose a house listed by a realtor that doesn't include the buyer's agents commission in their listing.  Then it might cost you.  But it's your choice whether to look at those listings or not.

A realtor will save you time.  They can narrow down the houses to look at based on the criteria you give them.  They can make all the appointments and make a schedule of the order to view properties that will save the most time.  I do mine in a circle.  Starting with south of my office moving counterclockwise and ending north of my office.  I make appointments for 30 minute durations but overlap them.  For example 5 to 5:30, then next one 5:15 to 5:45. etc.  This helps if we pull up to one and they hate the location, we don't have to wait 30 minutes for the next appointment.

Besides scheduling and paperwork, realtors help you know the next steps and when they occur, and can be there for these events if you have to work:  setting up inspections, appraisals, repairs, measuring rooms if you have a question such as if your refrigerator will fit in the space, run addendums to title companies, etc. 

3.  After you select the realtor you feel comfortable with, be sure and sign a buyer's representation agreement.  This makes sure that the realtor works for YOU and not the seller, and that you can trust them to work for your best interests and to hold information confidential that you share with them. 

Other steps in the process which your realtor will explain are:  making an offer on the one you want, negotiations, inspections, getting insurance arranged, choosing home warranty company (your realtor will be sure to put this in the contract offer for your benefit), doing walk-thru before closing, appraisal, survey, closing. 

Buying real estate is time consuming, but with a realtor to assist, it can be less confusing and flow smoothly.  Don't be afraid, you can do this and in the end have the American dream of home owership.  So.... go get prequalified.

Interest rates

Interest rates are remaining pretty steady.  Conventional loans you need 5% down and the interest rate for 30 years is 4.875.  For FHA loans you need 3.5% down and the 30 year rate is 4.5 and the 15 year rate is 3.875.  Home prices haven't risen in several years, and with this low of interest rates, it appears to be a good time to buy.

Rumor has it that if QEM passes (Obama's bill) then FHA loans will have to have 20% down the the American dream of owning a home will be the thing of the past.

To qualify for a loan you must have a 640 FICO score and make a certain salary.  I have a program designed by Chicago Title that will tell you what that number is, what your closing costs will be and even how much you will need in the bank account the day before closing.  I'd love to share this information with you.  Call Prudential Ada Realtors in Amarillo, TX, 806 355 9601 and ask for Judy. 

REAL ESTATE ON THE GO!!

Just read an interesting article where realtors not only use the new QR codes on signs in yards of houses for sale, so that interested drivers can use a free QR Reader ap on their phones to instantly look at the property - but also they are doing videos in their cars as they drive around giving tours and real estate information.  One company has their own station on UTUBE that they post these too and have gotten over 70,000 hits.  I'm wondering how many of those hits led to sales. 

The article also said one realtor has "become a star" on UTUBE by doing this!!  Would love to know your opinion.  Do you "shop" for real estate on UTUBE, and/or do you stop at yard signs and try to get immediate information from qr codes?  Further, what is your favorite way to find real estate:  newspaper? online? from a realtor? grabbing flyers from boxes in the yard?   Use the Comment section and let me know, would you please? 

Fourth of July and our Founding Father' Views

Well, we are celebrating our country's Independence this weekend.  It was in 1776 that 56 men signed the Declaration of Independence, and the one we think of most often is John Hancock.  We say, "Let me have your John Hancock," when we mean your signature.  But in all there were 56 signers of the Declaration.  52 of the 56 were Christians.  Never let anyone tell you they were deists and atheists.  Only people who never read their own words could say that; we can't let them rewrite history.

Patrick Henry, who is known for his "Give me liberty or give me death,"speech  also had this to say which shows his view about Jesus Christ:  "It cannot be emphasized too strongly or too often that this great nation was not founded by religionists but by Christians, not on religion but on the gospel of Jesus Christ. "  Definitely he had to be a Christian.

Then our first President, the great George Washington,  a great military leader, who was divinely protected during the War for Independence, as he had several horses shot out from under him, yet he remain unscathed, had this to say, "Without a humble invitation of Christ, we cannot hope to be a happy nation."  He didn't say without Muhommed, or Buddha, or some higher power, it was "Christ".  He wasn't afraid to be intolerant and say we had to have that invitation from Christ.

Next was the man people want to put down because of his owning slaves and supposedly having a child with one.  Thomas Jefferson started several churches in Washington and a university in his home state.  He said:  "I am a real Christian, that is to say, a disciple of the doctrines of Jesus."  Maybe he did some of the things he's charged with, but what Christian hasn't fallen short of the Glory of God.  NONE.

Second President of the USA, John Adams said, "The general principles on which the Fathers achieved independence were the general principles of Christianity."  In Isaiah 33:22:  "For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; he will save us."  These principles were used to set up our check and balance system.  Judge - Justice Dept; lawgiver - Legislative Branch; and king - Executive Branch (president). 

Finally, we come to the one that everyone wants to call a Deist.  I think he may roll over in his grave everytime they say that - unless he was right (which I know he was) and he is in heaven with Jesus.  Ben Franklin said:  "Gentlemen, if it is true that not one single petal from any flower falls to the ground without escaping God's attention, will the distress of this nation go unheeded?  Let us therefore determine to seek His face."  I understand at that point the assembly had a prayer time, and there wasn't a dry eye in the house when they were finished.

People, we must keep in mind the verse in 2 Chronicles 7:13 and 14:  If I shut up heaven that there be no rain, or if I command the locusts to devour the land, or if I send pestilence among my people; If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land."  If ever Texas needed rain, it is now.  Is he waiting for those prayers of repentence before he opens the skies once again? 

I know this blog today sounds like a sermon and it pretty much is my pastor, Gil Lain's sermon this morning, but it's also a patriotic lesson on how our nation was founded on Godly principles by Godly men, and this weekend we celebrate their achievements in fighting and sacrificing for our freedom.  Many, many people flee to the USA every year for this freedom.  Let's not forget why the Lord blessed us as a nation.  "One nation under God, indivisible, with liberty and freedom for all."  Let's celebrate this weekend and remember our past, but look to our future with eyes focused on Jesus Christ. 

Happy Holidays, and say "thank you" to a veteran if you see one and let him or her know we appreciate what he or she did for our freedom and liberty so we could have this celebration.

Country Property and/or Veterans

USDA is a way to get country property with no down payment.  There is a great house on Western that fits the bill.  If you want to live in the country and pay nothing down, get in contact with me.

Texas Land Board makes loans to Veterans for homes, remodelling and land, and you can have one of each kind of loan at a time.  The home and remodelling is usually 1/2% below market, and if you are disabled there is another 1/2% discount on the rate and after first year, no property taxes.  You can still get it as a VA loan but the TLB picks up part of the interest percentage and helps guarantee the loan.  We are only 1 of 2 states that has state boards that helps their veterans; and you only have to live in Texas one day to qualify if you are a veteran or a Viet Namese who served in their war and participated with the USA.  There are other benefits thru them such as retirement  homes and burial rights, first chance to bid on property foreclosed on, etc.  I am one of 13 approved realtors in this area for Texas Land Board, so if you are a veteran and need any of these, I'll be glad to help you.  Please click "Follow" to get updates as they change. 

How to have Curb Appeal

Great article from Kiplinger on curb appeal.  Don't know if during this water shortage it will work, but maybe once the drought is over it might come in handy.  Print and save until the drought is over.

Cheap Ways to Improve Curb Appeal

Boost your home's value by sprucing up your yard with these budget-conscious tips.

By Cameron Huddleston, Contributing Editor, Kiplinger.com

March 2009

Walk across the street from your house, turn around, take a good look at your yard and ask yourself if you're impressed by what you see -- or just plain depressed.
We can't all have yards worthy of being on the cover of a landscaping magazine. Those yards generally come with a high price tag. But a little cash can go a long way to improve your home's curb appeal. In fact, with existing homes selling at the slowest rate in a decade, if your house will be on the market, you can't afford not to spend some money and time on landscaping that will distinguish your house from others.
So we asked landscape professionals how homeowners could get the most bang for their landscaping buck within certain budgets: $100, $500, $1,000 and $2,000. They even threw in a few ideas for ways you can improve your yard without spending a cent.

Make a plan first

Regardless of your budget, before you grab a shovel or head to a nearby garden center, you need to determine your goals and ask yourself some questions to ensure your money is well spent, says Tara Vincenta, founder of Artemis Landscape Architects, in Brookfield, Conn.
Are you trying to improve your yard so you can enjoy it for years to come or to increase your chances of selling your house? Do you live in the city, 'burbs or countryside? What is your home's architectural style? Do you live in a wet or arid climate? Are deer or other wildlife an issue? "All these considerations can affect your approach," Vincenta says.
You don't want to waste money on plants that require full sun if your yard is in the shade. Nor do you want to try to replicate that cool, modern landscape design you saw on TV with your Victorian home -- especially if you're trying to sell it. The kind of person who would be interested in your home would want a garden that complements it.
"Do research before you go to a garden center and buy at random, or you'll end up with a hodgepodge," Vincenta says.

For $100, you can ...

Create a welcoming entrance with one or two big pots filled with colorful plants. "A plant in a pot looks much bigger than when you put it in the ground," says landscape architect Sam Williamson, owner of Samuel H. Williamson Associates, in Portland, Ore.
Make a significant impact on your landscape with a few 5-gallon trees for about $35 each, if you plan to stay in your home for at least five years, says landscape architect David Keith, owner of Arbor Studio, in Blanco, Tex. Smaller trees also tend to acclimate better.
Buy seeds, such as a mix of wildflowers, and cover much more ground than $100 worth of plants.ppeal.