Rentals are Booming.

Read an interesting article today about how investors are buying almost 33% of the houses and for cash.  How large corporations are buying hundreds at a time, and because of this are actually helping home prices go up in price.

They say that renting is at an all time high and that it seems to be the future.  More and more people can't afford a house and everyone has to have a place to live, so rentals are the way to go.

I bought a rental with a partner recently and paid cash and had it rented 3 days later.  Then we bought one that needed repairs.  We are about ready to rent it too.  Hoping it rents as easily as the first one did.  Wish I had the cash to buy more. 

If you need a rental in the Amarillo area, give me a call.  I'd love to help you find one.

New FHA Regulations in Regard to Collections and Judgments

Mike Clover sent me an interesting email, and I've received permission from him to quote his email.  This tells how FHA Regulations changed toward borrowers who have judgments or collections on their credit history.  He does a great job of giving information where you can understand it in a logical manner.

"In an effort to reduce risk in backing mortgage loans, HUD has once again revised its regulations, effective October 15. Mortgage Letter 2013-24 deals with credit analysis of collections and judgments, and outlines how lenders must proceed. As you probably know, the first step in FHA loan approval is use of the TOTAL Mortgage Scorecard.  This scorecard takes into account the presence of collections or judgments via the credit score. Should a borrower be approved through the TOTAL Mortgage Scorecard, no documentation or letters of explanations will be required. If TOTAL Mortgage Scorecard results in a "Refer," the lender must manually underwrite the loan – and must determine the cause of the collections or judgments. Was it disregard for financial obligations? Was it an inability to manage debt? Were there extenuating circumstances? In order to make this determination, the lender must gather supporting documentation, including a letter of explanation from the borrower for each outstanding collection account and/or judgment. It will be up to the lender to determine whether the explanation is consistent with other credit information in the file. Collections If the borrower's combined collection accounts equal $2,000 or more, the lender must perform a "Capacity Analysis." Medical collections and charge-offs are not included in this aggregate. However, collection accounts of a non-purchasing spouse ARE included here in Texas. Capacity analysis consists of one of the following: Payment in full of the collection account – using a verified acceptable source of funds. A payment agreement with the creditor, accompanied by a letter from the creditor verifying the monthly payment. This monthly payment will be included in the borrower's debt to income ratio. In the absence of a payment arrangement, the lender must calculate a monthly payment equal to 5% of the outstanding balance. This payment will be included in the borrower's debt to income ratio. Judgments Until now, borrowers were required to pay off court ordered judgments before being eligible for FHA insurance. Now there is an exception. Under the new regulations a loan may be approved if the borrower has entered into an agreement with the creditor to make regular monthly payments and has made a minimum of three such payments over a period of 3 or more months. Pre-payments will bring the balance down, but won't help with loan approval. The borrower must provide evidence that the payments have been made on time and in accordance with the agreement. And of course, the payment will be included when calculating the borrower's debt to income ratio. As with collections, in Texas and other community property states judgments against a non-purchasing spouse also must be paid off or meet the rules for exception. Disputed Accounts Many borrowers have found to their dismay that their credit reports contain inaccurate information. Some of that inaccurate information is the result of poor data entry, some is there because old accounts that should have "fallen off" the report have not been removed, some because the original bill was in dispute, and some are due to identity theft. Accounts that appear as "in dispute" on a borrower's credit report are not considered by TOTAL Mortgage Scorecard.  Therefore, they must be addressed in manual underwriting. Disputed accounts fall into two categories: Derogatory and Non-derogatory. Non-derogatory disputed accounts If a borrower is disputing non-derogatory accounts, the lender is not required to downgrade the application to "refer." However, if the dispute results in the borrower's monthly debt payments being lower than originallyindicated, he or she must provide documentation. Derogatory Disputed Accounts If the cumulative outstanding balance of such accounts is less than $1,000, a downgrade is not required. If the cumulative outstanding balance is $1,000 or more (excluding medical accounts) the borrower must provide a letter of explanation and documentation supporting the basis for the dispute. The lender must analyze the documentation to determine whether the account should be considered in the underwriting analysis. In contrast to collections and judgments, disputes involving a non-purchasing spouse are not included in the $1,000 aggregate balance. Identity Theft Disputed accounts resulting from identity theft and credit card theft are not included. However, the borrower must provide documentation verifying the charges as fraudulent. This can include a letter from the creditor and/or a police report. "

Part 1: Everything You Always Wanted to Know about HUD homes.

The above was a HUD home.  What does that mean?  Hud homes are homes lenders foreclosed on and HUD purchased them at a discounted rate and will put them on the market for homeowners.  There are several steps in this process.  But first know to find the homes on the market go to hudhomestore.com.  When you get there, click on the map for the state you are interested in.  A box will pop up and you can type in the county you are interested in and all the houses that are for sale through Hud will pop up.  If you click on a certain property, a page will come up with its picture and a bunch of choices and information about the property.  One choice that is important is the Addendums as that page as the property inspection report and tells you what they KNOW is wrong with the property.  They will give an estimate of the price to fix the problems they know about.  That doesn't mean there is nothing else wrong with the property, just what they found with their inspections.  But you are buying the property "as is".  HUD makes NO repairs. 

There are three types of listings:  lottery, exclusive, and extended.  What does that mean?  Lottery are Good Neighbor Homes.  If you are a nurse, a policeman, a fireman, an EMT, or a teacher, you can by that property for HALF the listed price.  Not a bad deal!!  But you must live in the home for a certain amount of time, or owe the other half of the listed price.  These listings last a certain amount of time, and if no offer is accepted, they change to Exclusive listings.

Exclusive listings are for home owners.  You must live in the house, it can't be an investment property for you.  If they find you never lived in the home but used it as an investment, they can actually charge you with fraud, and if your realtor knew you were going to use it as an investment instead of a home, they too can be charged and lose their license.  Don't try and fool HUD!!
They have a set date for bids to be opened, and if they open these bids and there are no acceptable ones, they they'll stay day to day for a certain number of days and they'll open the bids daily.  After that time period, the listing becomes Extended.

An Extended listing is now open to everyone, even investors.  Knowing that 25% of the homes sold in August were short sales and REOs (repos) you know that there are plenty of investors out there waiting for these Extended listings.  These homes usually need a lot of repairs, but at the price you can get them, usually an investor can make the repairs, fix the home up to look nice, and then resell and make a profit, or turn it into a rental. 

Two of my children have bought HUD homes in the Exclusive listing time period and gotten great homes for bargains.  One home is now appraised at $155,000 and he paid $100,000, and did less than $3,000 repairs to it.  The other got a 2300, 4 bedroom, 3 bath, two story valued at least at $125,000 and possibly more as it is in an HOA housing addition with its own elementary school for just $88,000.  This home was less than 10 years old!! 

People think of Hud homes as wrecks and in blighted communities, but the recession left millions of homes out there who were lost to foreclosure through job loss, not through deadbeat abandonment.  Oh, I've seen some that the owners tore up before moving because they were angry.  One had kicked in a wall in every single room, poured black oil down the stairs, and removed all the closet doors and the electrical box.  But this is not the norm.  Most are dirty, possibly filled with junk they left behind as they hurridly left before being locked out, but some are very nice, clean and livable, as both of my children's homes were. 

What type of repairs might be made.  Speaking of my kids, one had to put in new light fixtures, a dishwasher, a vanity, sink and 3 mirrors and faucets, and a disposal.  That was it!!  The other had to have the air conditioner worked on, a piece of siding changed out, and something in the bathroom, a faucet I believe, fixed, and two places in the kitchen the drywall had to be repaired.  That was all.  Neither had structural problems or major plumbing issues.  Both did have to replace air conditioner motors within the first year, but if they had listened to mama and gotten the home warranty when they purchased the house, then that would have been a $60 repair.  But home warranties are another issue and we can cover them another day.

In the end, HUD homes are a way of getting a deal on a house, but be prepared to lose a few.  Meaning the good ones get lots of bids.  You need to be prepared to bid at least the asking price, cash is better than a loan if possible, as HUD doesn't have to wait 30 days to close then, and be prepared the have your loan prequalified before making a bid.  Don't be too disappointed if on the day of the opening of the bid you didn't get it.  Both of my children did NOT get theirs upon opening.  My son was sent a message he did not get it but did he want to be in back-up position.  I, as his realtor, responded yes.  5 days later, on Friday we got an email that he was now in first place.  Obviously the winner had either decided not to buy, found something else, or didn't meet the 48 hour contract deadline.  When you are the lucky accepted bidder, you have 48 hours (2 business days) to get your contract paperwork all in.  You have to fedex it for overnight delivery.  If they do not get it in time, they are heartless and go to the back-up offer. 

My daughter bid time and time again and kept being over bid.  On the house she finally got, she was not the lucky winner, but took the back-up position and in a few days was notified she was the winner.  So remember to be patient.  Even if you don't win on the opening, take that back-up position and you may still end up with the house in a few days.

There are many other things to discuss about the HUD procedure, but you can find answers to the most asked questions at Hudhomestore.com.  One thing I DO like as a realtor, a realtor must represent you and put your bid in.  You pay their commission, not hud, but it can be within your loan.  You may not like this, but it will be a lot easier for you having someone do all the paperwork who is experienced at it, keeping up with all the deadlines, and protecting your interests.  And for me, the realtor, it might just keep me in business for another year or so.

Frank Dodd Act Could Affect Housing Market

We had a program recently on the Frank Dodd Act and how it will affect the housing market.

On January 10, 2014, the provisions kick in where borrowers can sue lenders when they start to foreclose for not doing due diligence by giving them a loan when they couldn't repay it.  Now who in their right mind thinks investors are going to give people loans if they can sue them when they don't pay them back.  I'm sure due diligence is done when a loan is made, that's what underwriting and loan approval and qualification is all about, but if a person is a deadbeat or a person runs into bad times like health problems or job losses, a lender has no way to prevent that.

It is  believed this will make getting a loan VERY VERY hard, and we may see a slow down in loans.  We may see realtors changing jobs.  We may see few people being able to buy a house.

Should the FHA loan go away, we could see conventional loans requiring 20% down for a loan, and the end of 30 year loans. 

So in summary, if you want to buy a home, do it before January 10, 2014.

Veterans You Need to Buy a Home with Your Benefits!!

I just saw an amazing question/answer program with the head of the VA loan program, called a Hangout.  I am an experienced realtor and have done quite a few Veteran home loans, but even I learned some things watching this, and I want to share some of the information.

They gave their 20 millionth loan recently, in 60 years (started in 1944) of helping veterans buy homes.  Last year was their 2nd biggest year of giving loans and they are on track this year to beat the best year.  Why is this so popular?

1.  There are 25 million veterans and yet only 1.8 million have a  loan.
2.  There is NO down payment with a VA loan and the closing costs can be rolled into the loan, or
      you can ask the seller to pay them and up to 4% of the prepaids. 
3.  Veterans walk away from the closing table with $$$$ in hand; which can be used to fix broken
      heaters later on or do rehabs right now.
4.  It's not your Father's or Grandfather's VA program.  It's updated, computer friendly, no paper,
     Instant approval on your military qualification.
5.  These loans have the fewest defaults for the past 5 years than any other kind of home loan.
6.  You can refinance them with no appraisal fees under their Streamline program.
7.  If you have another type of loan, you can still refinance into a VA.
8.  If you are disabled, you can get rid of property taxes.
9.  If you live in Texas, use this and the Texas land Board and get a lower interest rate.
10. The pest inspection makes sure you get a good home that termites have not eaten away.
11. The inspectors have lightened up and they only report dangerous situations, like live   
      electrical wires.
12.  They have added 1,200 new appraisers, so their appraisal times have speeded up to 10 days
       rather than 30, so the time to close is shorter.
13.  You earned this benefit - USE it.  If you have an inexperienced realtor or one who is
      judging things based on long ago experience, find a realtor who knows today's VA program
     and save your CASH for other things. 
14.  There is NO mortgage insurance.  With an FHA loan the mortgage insurance can cost you up
      to $50,000 more over the life of the loan.  Don't let any realtor tell you its cheaper to use FHA.

OK, I'm a proponent of VA loan.  I'm dealing with a house sale today using VA and TLB.  I've helped several veterans save interest, which means lower house payments.  A FHA loan can have $140 in mortgage insurance per month, why pay that if you qualify for a VA loan.  Isn't it worth waiting 15 extra days to close to save $50,000 in mortgage insurance AND have NO out of pocket costs and walk away from the closing table with $$$. 

If you are a veteran, and you are going to buy a home, be sure and use VA for your mortgage.

How to make your concrete look like tile.

I am listing a house that is fantastic, and the owner is an artist.  In her painting room, she has a floor that appears to be tile, but it is not; its concrete.  She laid out electrical tape in the shape of tile.  This kept the lines rough and one color and then she chose two colors to sprinkle in the squares and swirled them around.  No two tile is identical but by using the same two colors (she used white and a lighter gray than concrete) it appears they are tiles with small design differences. 

She said now when she makes a mess painting, its easy clean up.  I think this is awesome and would like to try it even maybe outside on a porch or patio. 

That brings me to another idea, what if you used stain instead, a richer look maybe?  Hmm

My Redecorated Listing in Amarillo!

Here is a picture of a kitchen I just remodeled for a new listing.  I've worked on the house for three weeks now.  This kitchen features a Bermuda Bronze tin backsplash - that's where all the shine comes from - a new vent hood over the gas range, and dark brown tile was replaced with this light colored tile featuring a green diamond inset.  I put a new coat of stain/varnish on the 1965 cabinets which also added some shine.  By using a light tile with a linear pattern, we not only brightened the space but made it appear bigger.  The one thing I was not able to get done due to the budget, was add new lights.  I was able to add 4 new canned lights in the living room through!!

Here is the dining area of the house.  This use to have a brown fiberboard wall that was dark and depressing and dark brown wood tone flooring.  By painting the fiberboard a cappuccino white with marshmallow white trim, we brightened the room; and added the same tile as in kitchen making it appear wider..  We used the mirror from Garden Ridge with tin accents to cover a phone jack that was on the wall and balanced that with an original piece of art I made using the splash from the kitchen to form a diamond on a green canvas, thus we have a green diamond surrounded by the splash, tying the art work to the kitchen splash and the combo room's flooring.  We put back the yellow café curtains that had been in the room before, but now they appear light and free, not sad and depressed.

The most changed room is the living room above.  This room was a dark-panalled brown room, with NO lighting, just a fan, dark trim and dark brown dated carpeting.  We put three to 4 coats of cappuccino white Glidden paint on the paneling, painted all trim and ceiling with marshmallow white Glidden paint, and added a new beige carpeting.  This room is now bright and light.  We also added 4 canned lights.  Remember it had NO lights, now it has 4.  This transformation has forced the words of "this doesn't look like the same house" from the owners and neighbors.  This is a 18 x 14 room, which is rather large for a 1,000 sq ft 1965 home, and now you can actually see the space.  Before when you walked in you felt like you were in a dungeon.  I can see in my minds-eye a entertainment center next to that closet, featuring a big flat screen t.v. and a nice sectional in front of the three windows on the west front of the house creating a wonderful family living space. 

We painted all ceilings marshmallow white which brightened the whole house, even the two dark paneled bedrooms and added wall to wall carpeting in the three bedrooms and hallway, which also got painted cappuccino white.  What an amazing transformation that made to the hallway, just opened it up. The three bedrooms got wall to wall new carpeting to match the living room, and the full bath/utility room and half bath in the master lost their dark carpeting and horrible smell (don't put carpeting around a potty, people) and received the same tile as the kitchen/dining combo.  By using the same carpeting and tile throughout, we made this house come together in a unison of harmony. We also added a light kit featuring 4 lights to the fan in the master, as before - just like the living room - there was NO light.  Never have I seen that before except in my son's house.  Go figure.

Now today the "for sale" sign goes up, the lockbox goes on, and this home is ready to welcome a new family to make 48 more years of wonderful memories.

I love redecorating - painting is my thing, trying new ideas like the Bermuda Bronze backsplash to create a new vibe feels great, and trying to be economical and not break the budget is a challenge I enjoy meeting.  So if you know someone looking for someone to transform their tired, outdated living space, tell them to call Judy Dendy, at Prudential Ada Realtors.  I not only sell real estate, I transform it into the 2013's mode.   806-672-3082.  I'm ready to start a new project, and I won't break your bank account. 

Making a Splash with Antiqued Tin!!

I have been redecorating a 1960's home for an estate here in Amarillo the past few weeks.  It was a very dark home with paneling in the living room, hallway and two bedrooms.  We decided to keep the paneling in the two bedrooms in case a day sleeper bought it.  But we painted the paneling a light cappuccino white and all the woodwork marshmallow white for a contrast and we are putting in a white tile with a green diamond in the middle in the kitchen, and baths.  The carpets are a light cappuccino also, and this home is going to really be light and airy.

Another problem we faced was that there were fans in the back bedroom and living room BUT NO LIGHTS.  Really, I'm not lying.  No lights in two rooms of the house.  So I bought light kits for both and then the electrician tells me that the fan in the living room is self-enclosed and can add a light kit.
I could have bought a new fan with light, but hey, if we are trying to make this house lighter and more moderns, why not canned lights.  So we added 4.  This really brightened up the living room.

The major place it is lighter is the hallway that was a paneled dungeon before.

But the thing I am most proud of is the splash in the kitchen.  We chose the Bermuda Bronze faux tin ones from Home Depot.  These are easy to cut to trim into place with scissors, and we used double-sided tape that is sold with the tin sheets.  However, I think after seeing it three days later, I might get some pretty little nails and nail the edges down so there is no bowing or bending.  This splash just sparkles.  Today I put gloss on the cabinets, and I'll do another one tomorrow and then Monday the tile and carpet goes in.

I will then post a picture of the finished product, but I can't wait to show you the splash so here it is:

 

I think the stove is about to be replaced too as the door fell off after this picture was made.  So Monday night I will try and post pictures of the finished room and maybe of some of the other changes.  I'm just so excited that the SPLASH made such a splash with the owners; who all think it is amazing!! 

 

I'm really enjoying this redecorating and hope to get more jobs in the future.  I hope my experience selling real estate will help me choose those items that buyers look for the most in a home and incorporate those items in the redecorating so that the homes sell faster. 

 

I will be listing this home for sale on Tuesday, so I have a vested interest in this being a great redecorated home.  Tonight I am working on an art project for the dining room to join a gorgeous tin metal mirror I got in Lewisville on a recent trip.  By bringing some of the tin into the dining room which adjoins the kitchen, the tin shiny theme can be continued and it looks like they are meant to be together.  I might do something for the living room too as this is kind of an open concept living/dining/kitchen combo. 

 

Hope you enjoy my redecorating story, and call me if I can help you too.  I can work on a very tight budget!!

Inventory is Low

It is time to SELL your property if you have been waiting.  During the recession we had over a year's supply of inventory on the market, but now we are down to 4.1 months.  Also home prices have risen, and you may be surprised at how much you could get today.

I sold a house in January in a subdivision for $218,000; sold almost the exact same house last week except for an additional garage stall and an extra 1/2 bath for $250,000.  Exact same square footage, same subdivision and only 2 streets apart.  This shows the increase is happening rapidly. 

So if you've been on the fence about selling, now is the time to jump into the market while it is HOT and a seller's market for the first time in years.  Plus the interest rates are still under 4% so you could move up cheaply or downsize to a great new payment.

Be sure you list with a realtor that has a large online presence, as 100% of buyers say they start online looking before calling a realtor.  My company, Prudential, has over 20 website presences your home would be presented on.  We have a proven track record for sellers' satisfaction. 

If you live in Amarillo, give me a call at 806 672 3082.

What February Looked like in Home Real Estate

Found a great article which I am quoting below on RIS Media below.  They do a great job of gathering information and putting it out there.  There are some interesting statistics below, but the main message is low inventory, rising prices, historically low interest rates, good time to buy:


February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of REALTORD®. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February, 2012.

February sales were at the highest level since the tax credit period of November 2009.

Lawrence Yun, NAR chief economist says that conditions for continued housing improvement are at play.  "Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise.  Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable,"  he says.  "The only headwinds are limited housing inventory which varies greatly around the country and credit conditions that remain too restrictive.

Total housing inventory at the end of February rose 9.6% to 1.94 million existing homes avialable for sale, which represents a 4.7 month supply at the current sales pace, up from 4.3 months in January, which was the lowest supply since May, 2005.  Listed inventory is 19.2 % below a year ago when there was a 6.4 month supply. 

The national median existing home price for all housing types was $173,600 in February, up 11.6% from Febraury, 2012.  The last time there were 12 consecutive months of year-over-year price increases was from June, 2005, to May, 2006.  The February gain is the strongest since November, 2005, when it was 12.9% above a year earlier. 

"A strong rise in home values is contributing to housing wealth recovery, which has risen by $1.4 trillion in the past year and looks to top that increase this year." Yun said.  "The extra consumer spending arising from growth in housing wealth is expected to be $70 billion to $110 billion this year. 

Distressed homes-foreclosures and short sales--acounted for 25% of February sales, up from 23% in January but down from 34% in February, 2012.  Fifteen percent of February sales were foreclosures, and 10% were short sales.  Foreclosures sold for an average discount of 18% below market value in February, while short sales were discounted 15%. 

Accoding to Freddie Mac, the national average commitment rate for a 30-year, conventional fixed-rate mortgage rose to 3.53% in Feburary from 3.41% in January;  it was 3.89% in Feburary 2012.
NAR President Gary Thomas, says interest rates remain extraordinarily low.  "In the history of mortgage interest rates since 1971, the 30-year fixed rate has been below 4% in only 15 months, and they have all been in the past 15 months," he sayd.  "Even with rising home prices, affordability remains historically favorable because home prices over-corrected during the downturn.  This means there is still great value for buyers in the current market."

The median time on market for all homes was 74 days in  February, which is 24% below 97 days in February, 2012.  Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed home took 77 days.  One out of three homes sold in February was on the market for less than a month.

First-time buyers account for 30% of puchases in February, unchagned from January; they were 32% in February 2012.

All-cash sales were at 32% of transactions in February, up from 28% in January;  they were 33% in February 2012.  investors, who account for most cash sales, pruchased 22% of homes in February, up from 19% in January; they were 23% in February 2012. 

What is UNPOPULAR with Today's Buyers?

Just read a great article about 4 things that turn buyers away from a house.  Then the people reading it could add their two cents and I picked up a pretty good list.  Not sure I agree with all of them, but some of them.

1.  POPCORN CEILINGS, dated, dirty, possibly has asbestos.  Bad thing to remove is they need scraping and are dusty, dusty to do.  If they've been painted over, even worse to get rid of.  One person said you can get thin sheetrock and cover them and then not have the dust and the asbestos abatement problem.  I LIKE THAT IDEA.  May check into that for my remaining 2 rooms that still have popcorn.  Not sure I could go thru another scape and dust job.

2.  Shiny, brass light fixtures.  Don't spend money to replace them, just paint them.  One can of paint might cover several fixtures.

3.  Hollywood light strips in bathrooms.  I'm sorry, I love mine.  Wouldn't want a bathroom without them for me. 

4.  Carpeting.  Most people they said want hardwoods.   EXCUSE ME, but I've had as many customers who hated hardwoods because of the coldness on their feet and preferred the carpet.  Others wanted stained concrete.  My suggestion is unless its ugly carpet, just get it cleaned.  If you are going to spend money on the floors, try doing hardwood in the dining room at least. 

5.  Mauve and peach.  Those colors scream old lady (Funny, I have mauve below the chair rail in my den because the carpeting on the stairs is a mauvy red.  I guess I need too paint.  Wait!!  I am old, I have 5 grandkids.)  Neutrals are better than almost any "color".

6.  Having rooms all different colors.  That is fine when you have kids and they want their favorite colored walls, but once you get ready to sell, neutralizing in one color is great.  I have started upstairs where the boys lived doing just that.  One had a black room.  I textured over that and painted it a neutral and have done the blues clues bathroom the same neutral.  I'm not sure I'll neutralize the blue bedroom up there just yet because there is blue carpeting in there; but will before I sell.  Most of my downstairs is blue so I'm sure when I get ready to sell, there will be alot of painting to be done first.

7.  Wallpaper.  Dated flowers are gone.  Today its painted walls or geometric wallpapers, but those can be offputting to the more conservative buyer.  Safer to stick with neutrals, but I have seen people go ga ga over red kitchens, so maybe sometimes it is ok to have a punch of color in a kitchen.

8.  Laminate.  WAIT,  I love my laminate.  I tored out the 4 inch tiles to get rid of grout and the laminate is so easy to clean!!  Well, buyers today prefer granite even though it doesn't hold up as well as laminate.  So if you have the $$$, change everything to granite; but if you don't I like the laminate that resembles granite.  Sometimes as realtors we have to touch it to tell the difference.  No one is using corian or 4 inch tiles any more.  Dont waste your money there.   Decorative tumbled stone back splashes are GREAT. 

9.  Front doors.  Absolutely I've seen people judge a home before they enter based on whether the door is nice or not.  Actually they judge it more if the door is rotted, peeling paint, or dirty.  Then they presume that the whole house has not been taken care of  So be sure your front door is pristine when you put your house on the market. 

10.  As realtors we say "classic" bathrooms when we mean PINK, BLUE, YELLOW, GREEN bathrooms, all done in 4 inch tile, including tub, toilet and sink.  Please at least change the toilet and sink.  There is a paint for the tiles that will cover and neutralize. 

I'm sure I could go on and on about things I see, but for today I'll stop with these.  They are in no particular order, as each is important to some buyers.  Some walk out upon seeing popcorn ceilings, some stay until they reach the classic bathrom.  Some won't enter if it has carpet, and some won't enter with hardwoods, so each person is different and this is just a list of "normal" irritating things buyers mention.  I'd love to hear what you HATE in a house when shopping for one. 

Contemporary home in Puckett was Totally Unique

I just saw the most amazing house in Pucket in Amarillo, Texas.  5568 sq ft for just $379,000.  That's about $60 a sq ft.  It was custom built with a garden room, two huge living rooms both with fireplaces, two staircases, 5 bedrooms, 5 baths, 2 master suites, 3 car garage, and a kitchen that all the cabinets were handpainted by an artist and no two sets of doors match the ones around them.  Very contemporary design.  Two staircases, and you could look down on the lower levels for a great view.  there was an upstairs deck.  Backyard featured a hot tub.  It was amazing.

8 Steps to Getting Your Finances in Order

8 Steps to Getting Your Finances in Order

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing downeverything you spend for one month. You’ll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Judy Dendy

Prudential Ada, Realtors

3300 Danvers

Amarillo, Texas 79106

806-355-9601 Office

806-672-3082 Cell

Sequestration Advice and Explanation

I have the power of attorney for my Mom, and her financial dude just sent out an investment letter about what all this Sequestration stuff is all about.  I want to quote some of what he said as an explanation of what is going on and who will be complaining and raising the roof and why.

"I thought you would be interested in the following commentary from investment strategist Kate Warne.  She discusses the possible impact of sequestration, the automatic spending cuts that are scheduled to take effect March. 1.

WILL SEQUESTRATION CAUSE A RECESSION?

When Congress acted to avoid the fiscal cliff in early 2013, they merely delayed the implementation of automatic spending cuts - called sequestration - until March 1.   These cuts to defense and non-defense discretionary spending were designed to force Congres to agree to more targeted and appropriate spending cuts.  However, at this time it appears that little progress is being made to prevent these automatic cuts, although they could still be avoided at the last minute.

NO RECESSION LIKELY

The Congressional Budget Office (CBO) estimated the sequestion spending cuts will reduce economic growth in 2013 by 0.6% to 0.8%.  We believe the economy is on track to expand at about a 2% pace, so sequestration could reduce 2013 growth to around 1.2%.  In addition, these spending cuts don't all happen immediately, spreading the impact over time, and there's a lot of uncertainty about exactly how they will be implemented.

We anticipate you'll hear alot about high profile cuts in critical military and social programs.  Spending cuts are painful.  But we also know that the squeaky wheel gets the grease.  Everyone whose budget is cut has an incentive to 'squeak' as loudly as possible, in hopes of getting their spending restored in the future.  Without judging the specifics, critical defense and social programs aren't likely to be threatened long-term by these cuts.  In other words, it probably won't be as bad as each political party or the media would have you believe.

Spending cuts reduce short-term economic growth, but it appears the economy will keep chugging along at a slow pace this year even with reduced government spending.  There may even be a benefit.  Slower growth this year could produce a rebound in 2014, raising the pace of economic growth closer to 3% according to the CBO.

LOOKING TOWARD THE NEXT DEFICIT DEADLINE

Although the stock market could react negatively to spending cuts, it's likely the sequestration deadline will receive less attention than others on the horizon.  everyone's focus is likely to shift to March 27, the deadline for Congress to pass another funding bill.  Without another continuing resolution or broad spending agreement, there could be a partial federal government shutdown.  Many expect revisions to the sequestration cuts as part of any agreeement to extend funding for current government spending.  So even if sequestration occurs, some of the cuts could be in place for only a short time. 

RECOMMENDATIONS FOR INVESTORS

Over the past few years, investors have occasionally been surprised by the impact of politics on the financial markets.  Congress and other policymakers have repeatedly waited until the last minute to make necessary decisions--and in many cases have simply delayed important decisions.  As a result long-term investors have learned to pay less attention to these short-term triggers of potential market volatility." 

That's all I will quote as the rest is their opinion about how to invest.

I wanted to share this as an explanation about what all this sequestration is about.  The media likes to use "fall off the cliff" and "sequestration" terms to keep us on the edge of our seats, but they fail to actually tell us what that means.  Listening to an interview with Boehner last night, he said some pretty plain, down-to-earth things, and you could tell the interviewer was aghast that he would tell the Congress and President to quit sitting around bad mouthing everyone and not pass a budget in how many years now!!  He said to get up off your lazy butts and get the work done!!  That's what the Tea Party has been saying, and regular Americans who have to live within their means, have been saying.  Get to work, make a budget, stay within your means, and make the cuts that need to be made - such as foreign aid can STOP, giving money to the movie industry is wasted money, etc.  Let's make a budget to run the country, and not give to all those special intererests that have nothing to do with government.  We are in this pickle because each politician has wanted to bring home the bacon to their constituents and look good in the voters eyes, when in fact the voters want a budget and a balanced one at that. 

Well, I hope this explanation has been helpful in showing you what is about to happen in Washington DC and how it will impact our economy.  

I'd like to add one thing.  I've been invested in the stockmarket for over a decade and politics rarely causes a movement except for a day or too HOWEVER when USA was downgraded, my investments took a major nosedive:  over 33% lost in two days, and it didn't recover like in past years when Congress shenanigans caused movement.  But when we were downgraded because we have too much debt, that did impact the market and many people lost their retirements.  My Mom never lost anything as she stayed in guaranteed interest rate type investments, but she also doesn't get the big jumps when things are good like other type of investors get.  What I'm trying to say is that what Congress does on cuts and budgeting might not impact the pace of the economy much from day to day, but if we get another downgrade, which is rumored, that could impact investments.  So it is critical for the USA to start living within its means and quit being the Santa Clause to all the needy, the disenfranchised, the foreign countries, the world.  We need to attack how to get our debts paid off and start living in the black.

 It's the same with people.  Alot of people were living above their means, buying too expensive of houses before 2008.  When the recession hit, millions lost their homes, jobs, and credit scores plummeted to below 600.  All of a sudden those downgrades in credit scores kept millions of people from being able to buy a home.  Some were people who never had a home to lose, but were students in college running up loan debt.  They have been penalized because of those who did live outside their means.  Same here, if the government continues to run up debt, the downgrades will happen, and these will affect us more than any of their arguing, and political maneuvering.  We need for our representatives to put the pedal to the metal and sit down, make some cuts, and get the budget balanced.

Stop!! Don't Put These 5 Things Down Your Drain!

Just read a great article on RIS about the 5 things not to put down your drain, and sometimes they are referring to the storm drain.

1.  Grease.  It can clog your drains when it hardens and make sewage back up into your house!!  Yuck.  Keep a large can under the sink to pour cooking grease into and then when full take it to a full-service recycler.

2.  Motor Oil.  Don't pour it down the outside drain.  Those drain to waterways.  One gallon can contaminate a million gallons of water.  Again, take it to a full-service recycler.

3."  Fertilizers. Nutrient overload causes algae to bloom which removes oxygen from the water. That litterally chokes the life from vital water creatures that help improve the water's quality. To avoid all that, use ONLY the amount of lawn chemicals you truly need and only when and where you need it."

4.  Old or unwanted medicine.  Don't flush unused meds unless it specificaly says so on the bottle. "Instead, throw the medicine in the trash in a sealed bag with coffee grounds or find a responsible medicine disposal company. Many pharmacies partner with companies that will take care of your old prescriptions properly and some of those companies allow you to reutrn your medications to them directly. Go to DoYourPar.com/Columns for more resources. "

5. " Pet waste. Don't forget to scoop the poop as pet waste is considered raw sewage because it contains parasites and harmful microorganisms that can be transmitted to humans. When it rains, these parasites and bacteria can be washed into nearby storm drains. It is best to clean up after your pet and dispose of it in the trashcan."

Terri Bennett the author is a tv meteorologist, eco-expert and author of Do Your Part: A practical guide for everyday green living available at DoYourPart.com. send questions to terri@doyourpart.com 

Strangers in My House!!

After getting a call today for someone wanting to see a house, who only wanted to give me a first name, and no other information; then I asked if she was prequalified and she didn't want to answer that question either, I decided the public needs to know a few things.

Imagine you have a nice home that you are putting on the market.  It will house you and your family throughout the time it is on the market.  It will have all your furniture, treasures, clothes, family pictures, silverware and china, etc., in the home while it is on the market.  There are bad guys out in the world, people who would love to see what is inside a nice home and get a layout of the house in order to rob the house. 

Now suppose a complete stranger calls your realtor asking to see your house and all your realtor is able to get is a person's first name.  Would you want that stranger in your home?  Of course, not.  So when you call a realtor to see a home or get more information, don't expect them to celebrate the call and rush out to show the house if you aren't willing to give more information than a first name.  Be prepared to give your full name, email address and phone number.  Be prepared to tell whether you have taken the steps to get pre-qualified for a loan.  This tells the realtor you are serious, you are a buyer, that you will follow through on a sale once you find the perfect home.  It will also let the homeowner know that buyers are coming through their home, NOT BAD GUYS.    Realtors put their lives on the line when they take complete strangers out to see homes.  So don't get huffy with the realtor and refuse to give any information.  In the future, I will be more discerning.  I won't be a "pop tart" relator who is ready to jump up, run out and show houses to total strangers.  I'm going to know something about the person before I go show a house. 

Secondly, in Texas when I meet with someone for the first time, I am required to give them an Information About Brokerage Services.  I have to get them to sign saying I gave them the information.  This lady I showed today acted like I was getting a signed contract for the purchase of the property when I asked her to sign.  It took the whole houselooking trip before she finally put her name on the paper and tore it apart so I could keep her signature and she could keep the information.

Don't be afraid that the realtor will sell your name and address, they don't.  Don't be afraid they might send you other properties to consider.  That is their job, and if you don't want them, don't open the email, put it in spam or delete.  But don't think you are doing them a favor asking to see a house.  It takes time, gas, and unless you buy, it's a waste of time.  Why would they go out and waste the time for a perfect stranger.  In the hopes of making a sale, is why.  But they deserve respect from the buyer and they need information, and their sellers deserve it too. 

Thirdly, when you go to an open house, the sellers again are opening up their prized possessions for complete strangers to go through and brouse and look.  Don't be offended when the realtor asks for your name and some other information.  They need to show the sellers that real people with real addresses, phone numbers and emails came through the house; and should something come up missing, they have a list of people who might be responsible.  If you are guilty and not planning a robbery, you have nothing to worry about.  I'd think only the guilty would want to keep their names private.  Go to open houses knowing you will be asked to sign in!!  If you had your house on the market, you'd want the same courtesy.

Rentals in the Heartland

Destination Heartland!!!   That is where savvy investors should be heading according to the latest rankings for best real estate markets for investing in single family homes as rental properites.  

Many of the smaller cities have low unemployment rates, well below the national averag,e and they also have strong job growth.  Here in Amarillo we have high rental numbers because of Bell Helicopter bringing in new graduates, so almost all rentals rent quickly.  I have a realtor friend who has over 220 rental houses and he says he rarely has to advertise for more than a week.  Another landlord told me she didn't want to send me her "empties" because she usually fills them the week she gets the 30-day notice they will empty, so why bother sending them to a realtor.  In other words, it is easy sneezy to get rentals rented in Amarillo, Texas. 

Housing prices have bottomed out, also in some areas.  Here in Amarillo, actually our house prices increased last year, but compared to other parts of the country, our prices remain low, with the average being in the $150,000's.

The smaller markets are great places to rent out single-family homes because strong economic growth can quickly absorb the existing housing options.  Here in Amarillo there is a shortage of lots for new homes, so there are fewer homes to buy, so rentals are really hot!!

The lower the risk premiums of the smaller markets make them a saffer investment.  I'm not sure what this means exactly, but it was in an article I just read.

The interest rates are low, demand is high, so investing in rentals in Amarillo, Texas, just makes sense.

Setting Goals.

Why setting goal is so important in our life?  From Supplement Expert's blog:

On the best sunny day, the most powerful magnifying glass will not light paper if you keep moving the glass. But if you focus and hold it, the paper will light up. That is the power of concentr...ation.

A man was traveling and stopped at an intersection. He asked an elderly man, "Where does this road take me?" The elderly person asked, "Where do you want to go?" The man replied, "I don't know." The elderly person said, "Then take any road. What difference does it make?"

How true. When we don't know where we are going, any road will take us there.

Suppose you have all the eleven soccer players, enthusiastically ready to play the game, all charged up, and then someone took the goal post away. What would happen to the game? There is nothing left. How do you keep score? How do you know you have arrived?

Enthusiasm without direction is like wildfire and leads to frustration. Goals give a sense of direction. Would you sit in a train or a plane without knowing where it was going? The obvious answer is no. Then why do people go through life without having any goals?

RADON causes LUNG CANCER.

We had a speaker this morning at our office who is a termite inspector, building inspector and Radon inspector.  He got his training on Radon in Colorado where it's a real problem due to the mountains and basements.  He says after learning what he did, he thinks it's well worth the cost to have your house tested, because it can be remediated if Radon is found, and if you have it and don't test, a loved one may end up with cancer.  YUCK!!

I'm concerned because I have a basement.  But he said that's what people think, that only basement's have this problem.  But he said actually any slab house is just as at risk.  He says he sees less in pier and beam homes if the foundation footing has adequate ventilation.  (Mine have been plugged up with spray on foam - I will get that removed.).

He said the newer the home, the more likely there is some radon because the new homes are built under such strict codes they are so air tight the gases build up and can't get out.  He said it is very important to periodically open the windows and let the gases go out of the house.  He says carpet is a bad thing too as it allows things to hide down in it and germs, etc. are still floating inside the house.  I open my bedroom window when I sleep when it's warm enough, but the rest of my house doesn't get much airing out.  After today, they will.

He had a new heater/air conditioner put in his office that has a certain type of light which kills germs, etc that goes through his filters.  He said the light bulb costs about $100 and it was probably several hundred to have it installed, but he said to keep everyone in his office well and working, it paid for itself.  His HVAC man was hesitant to do it, but he asked him "How much does each sickness cost once you go to doctor and get meds.  It will pay for itself in no time."  He is very pleased with his system.  I can't remember the kind of light he said, but I'll try and find out.

Here was something else he said that surprised me.  Remember, I'm not a "lover" of granite.  I prefer marble.  But he said that he can't put the testing equipment near granite counters as they give off Radon.  Good news is that it's not the poisonous kind of Radon, the "alive" Radon.  Frankly, I'd think any Radon would be bad.  I wouldn't want to take a chance, so I'll stick with my laminate counters and marble bath counters. 

He also said it's bad in sunken living areas, which my son has.  Other things wrong with that type of construction:  1.  As the foundation settles, the pipes under the sunken area get broken  2: and when they leak or break the water from those and the bathroom leaks in the wall between can cause termites to be drawn to your house.  YUCK, again. 

Well, I learned alot today about Radon, granite, sunken construction, termites, plumbing and other things, but the #1 thing he said.  If he had his way, builders would go back to building pier and beam homes.  I agree.  I love mine.

Gross Income Used For Mortgages??

Just read an interesting article about how GROSS income is not a good way to decide whether a person can afford a mortgage.  It brought to light the fact that bills people pay aren't even considered among those bills that get reported to credit agencies. 

For instance, the number one bill paid is car payment as that is how people get to work and it will get repossessed if not paid.  Then they have to have gas to run the car, and child care for their children while they are working.  See the point.  There are alot of non-credit agency type bills that will get paid before the house.  The house gets paid if everything else gets paid first.

I'd never thought of it that way as I'm old school, and I budget the house payment first.  I have a real "fear" of living on the street as the little old "bag lady".  So that's the first thing I get paid each month.  Maybe I'm weird, if this is not the way most people do it. 

Read another great article recently from an investment firm who said be sure you pay your car first as it's how you will get to work whenever the dollar goes crazy and is worth next to nothing.  You can also live in it.  Ouch!!  another person who puts a car before the house. 

So if you are interested in this concept, I'm copying the address for the first article.  Let me know what you think.  http://www.nationalmortgagenews.com/blogs/hearing/gross-is-for-kids-not-ability-to-repay-1034058-1.html

My 9 reasons for Buying a Home Rather Than Renting

Just received an email from a lender that most have gone up to 3.5% on 30 year conventional loans due to the weekly unemployment numbers.  He is keeping his at 3.375%.  If you need his name, email me at westwinds4jc@aol.com. 

I'm glad to see unemployment go DOWN, as more people can now afford houses, if they have a job.  I want people to have the American dream so that they aren't throwing away rent money.  If you have a house you: 

1.  get to pay property taxes and take them off your income; when renting you get to pay the landlord's property tax with increased rent, and he gets to take it off his taxes.

2.  get to paint any room any color you want, such as my son did a eggplant purple dining room.  If you rent, the landlord chooses the color, and it's usually white.

3.  You can hang anything from the walls and ceilings you want.  If you rent, the landlord probably has rules about that too.

4.  You can add a chandelier with pink flamingoes.  Not if you rent, unless you want to give it to the landlord when you move.

5.  Plant trees and flowers and have a dog and cat.  If you rent most like no CATS as their odor is hard to get rid of.  My daughter was told by her landlord that they are to maintain the trees and yard as they found it, and even though a tree died, they aren't allowed to plant one to take its place, and they had to get landlord to remove it when it started tilting toward the house.  Boys weren't allowed to go outside and play until landlord found the time to cut it down.  He also forbade a dog in the backyard. 

6.  Pay interest on a loan and take it off taxes.  If you rent, you pay the interest on any loan the landlord has on the property through increased rent.

7.  A steady payment.  Get it set for 30 years.  With rent, it usually goes up every year or so.  No way to budget in advance.

8.  Feel the pride of ownership.  Nothing like knowing this is my house (along with the banks) rather than feeling like you are borrowing your living space from someone else.

9.  changing that ugly linoleum in the bathroom that's curling for some nice ceramic tile.  My daughter's bathroom linoleum is gross!!  But her landlord is in love with it. 

My daughter, a realtor, knows all this, and now that their student loans are all paid, their credit score will go up, and they plan to buy asap.  9 years of renting and they are finally going to be able to buy and get rid of the white walls, the nasty carpet, the ugly lineoleum, get a dog, plant some trees, and get some tax write-offs.  Life is good for the homeowner. 

A Little About A Lot of Things.

Interest rates are staying low but inching...no millimetering upward.  30 year conventional is 3.375%.

I learned from my kids that you can't refinance unless you have paid down 5% of your original note; doesn't matter if you had a good equity.  Their house is about $145,000 value, and they paid $100,000 in foreclosure sale for it in July.  We figure they've paid it down to about $97,000 as they just got a 15 year note.  So they have to pay down $2,000 more in principal before they can refinance at a lower interest rate and get a home equity loan for fixing a few things they want to do.  Not bad for 23 year old kids, huh!!  So proud of them.

I listed a huge 4400+ home this week.  Originally 6 bedrooms, now 5, as they took down a wall and opened up a large living/dining area.  It has 2 living areas downstairs and a huge sunporch which would be great for a pool table or hot tub.  It has 3 bedrooms downstairs and 2 baths, and upstairs another full house of 2 br, office, landing that is huge enough for another office, large open la/dining and another kitchen.  Perfect home for 2 families, and that's what lived here.  Two families, and one was a quadriplegic so downstairs are the mechanism for lifting a disabled person and a shower that's about 5 x 5 to accomodate a wheelchair.  This house has a large covered patio, wheelchair accessible, and two extra lots; one on each side of the house.  Build a shop and a pool, or another house on the north, as that lot is about 88 x 115.  All for $174,000, as we need to sell it fast before it is foreclosed due to medical bills.  Aren't banks totally without heart!!  These people tried to make payments and they wouldn't take partial payments and said they wouldn't talk about refinancing until they were 3 months in arrears, so they paid medical bills with their money for 3 months and then tried to refinance and the bank said  no, because now they had no closing cost money.  This is THE national bank we all hear about not having a heart, and I'm afraid it is so, even though my mortgage is with them and I bank there.  I may change all the banking part to a local bank after this. 

I want to share a devotion and comments I posted today on facebook and on my momsdementia.com blog where I cover things about my mom's Vascular Dementia.  This is about God and his love for us.  So if you are not interested in hearing about how God wants to hear from you, then stop reading right NOW.

"Sue Lawrence gave me a devotion book that I am really enjoying. Today's was about Psalm 145:18. "The Lord is nigh unto all them who call upon him." The writer said he had just finished reading a book explaining prayer, and how the Lord is always waiting to hear from us, longing to hear from us, ready to listen to us. He was cynical and thought, "Oh, yay, the creator of the universe wants to hear from a nobody like me. That day was a particularly busy day for him at work, lots of deadlines and projects. The phone interrupted his schedule and he picked up the phone and answered in a tone that said, "Get on with it and let me get back to work." Then he heard his son's voice . Attitude changed. His son was on his way to work in his car and was telling his dad about his newest project, about his friends, etc. They visited for over 10 minutes and when the phone call ended, the dad realized that he had been longing to hear from his son, just as God longs for us, his children, to call him and visit, and spend time talking. He knew then what the verse meant, and he understood more about prayer.

I've had the busiest 5 days in real estate this past week I've ever had. One day I didn't even eat until 6 p.m. That day my son DJ and his wife offered to go with me to eat as Jerry was already at church, and I so enjoyed the 'down time' to just listen to them and tell them about my life. It was special. Yesterday I decided I was NOT going to miss my pickleball so I quit at 4 and went to play for 2 hours. Just before we started a new game, the phone rang for the second time, I jerked it to my ear and said "This is Judy, what can I do for you." in a tone that was not very welcoming. My son, Jeff, answered, "Well, for one thing, don't yell at me." Oops. Then he invited Jerry and me to go bowling, which later was cancelled and changed to supper at Mr Gattis. Jerry knows I don't ever put my kids off if they want to spend time with me. So we went, and had the added surprise of having Cierra, Brandon, Charli, and Derek all together for a meal and visit. I so enjoyed listening to Jeff's exercise stories, DJ's comments about bump, set, spike being the way to play volleyball, but sometimes you see an opening and it's right to just hit it on over; to watch Cierra care for and love on that baby girl, Charli, and to see Brandon being his usual -in his words - not cute but handsome self. To hear Jerry share the story of his near fall at PD Canyon, and just share in everyone's lives. So this devotion today was right on for me. God too wants those kind of phone calls, those special sharing times with his children. Have you given him a call today? He's waiting . . and hoping . . ready to listen as long as you want."

Budgets, Spending, No Pay for Congressmen

Just read where the Congress passed a bill allowing them to keep going further in debt until May, and borrowing, and borrowing.  How stupid is that.  We need to get our government on a budget and live within our means like "real families" have to.  And to top it off, they pulled a stunt!!  Here's what the article said about the stunt:

"It includes something of a stunt -- a provision to force the Senate to write a budget by suspending lawmakers' pay unless they pass a spending resolution. The "No Budget No Pay" provision is largely symbolic, since Senate Budget Chairwoman Patty Murray (D-Wash) already has pledged to write a budget -- something that the Senate has not done for nearly four years, largely for political reasons.
The passage of the debt ceiling legislation would stave off until May 19 or later another showdown over paying the country's bills and would ultimately raise the debt limit by whatever new bills the nation racks up over the next 90 days. It's not quite a blank check, but analysts believe it would allow the Treasury Department the leeway to build a new cushion before the new deadline."

Is anyone else as tired of these type of games with NO work getting done, as I am.  I wouldn't oppose dissolving this bunch of lunatics and re-electing new people, maybe elect accountants rather than lawyers.

Mortgages and Dodd Frank Act

Here's an email report I got from a mortgage lender.  It shows that in the near future, buying a house and attaining the American Dream may be next to impossible.  What is my purpose to put it here.  1.  Show how out of control the government is on regulating everything; 2.  show that if you ever plan to own a home, you had better do it pretty darn quickly.

"When the Dodd-Frank Act was signed into law in July 2010, it contained 848 pages.  From there, the regulations it proposed had to be made into 'rules' that the financial industry would follow.  These rules would be released over time.

So far the rules and regulations have grown to 8,843 pages, and the regulators have only addressed 30% of the Bill.

The first of the rules regulating the housing market, the Ability to Pay/QualifiedMortgage (QM) rules has now been released, and while some believe it will help stabilize the housing market, others have reservations.

The 43% Debt to Income limit (DTI) is overly inclusive because it includes jumbo loans.  These are loans made to high income individuals who can well afford a higher DTI.

The rules calls for a three percent point and fee limit--which is also overly inclusive because it includes compensation for loan officers plus affiliated fees.  In addition, capping fees at 3% could cause banks to reject low balance loans as 'not worth it'.

The Avalanche is coming...

Seven more rules are scheduled for release by January 21, and more will come by mid year.  Already various rules and regulations are overlapping...causing confusion and doubt in the banking industry.  The fear is that these regulations will make mortgage lending too restrictive, and result in a housing market in which only the very wealthy may apply.  Many analysts fear that first time buyers and middle class will be cut out of home ownership. 

A second 'unintended consequence' of these regulations is lenders leaving the credit markets.  When it simply becomes too cumbersome to abide by the regulations, banks will invest elsewhere.

At a time when America is facing a severe debt crisis and should be cutting expenses, American taxpayers have now paid an untold number of regulators to write 8,843 pages of regulations--with at least twice that many still be to written. 

But that doesn't seem to be enough spending.  Since all this leads to confusion, the Mortgage Bankers Association has called on the White House to create yet another regulatory agency--a 'housing policy coordinator'.  This agency would be charged with evaluating the downstream effects and unintended consequences of the regulations being put forth.

While some regulations were in order to prevent the kind of abuses that led to the housing crisis, the 'cure is beginning to look more harmful than the disease'.

Will the new regulations help or destroy the American Dream?  We'll find out as new mortgage lending regulations are imposed over the next 6 months.

For now Dodd-Frank appears to be a monster that once fed, will continue to grow beyond all reason."

I too wonder if the health law with it's many intrusive parts will add to this conglomerate of unadulterated growth in rules, regulations, and stifling of the economy.  We'll see.

Home Warranty Woes

Once upon a time there was a realtor who bought an upgraded warranty from a national warranty company.  At first, things went well.  Her warranty went into effect on December 1 of that year, and on the 15th her heater started sounding like the motors exploding on the Titanic.  She called the company, and within hours a repairman was out.  He said the part that was needed would come from a town 2 hours away and as it was Tuesday, he'd get it and install it when it came in.  Luckily this realtor had a second heater due to this being a two story home, so with space heaters and every light on in the house for warmth they thought it would be NO PROBLEMO.  However, no one expected a part from 2 hours away to take 7 days.  After a call to the salesman who sold her the warranty, the part appeared hours later, was installed and all was well....for a few months.

Then in the summer a number of things had piled up and the salesman had said since they were small items to save them for one trip for one $60 fee.   Realtor called warranty company about her microwave that sparked from a broken shelf holder each time she tried to use the microwave;  about a plug in the bathtub, where you flip a handle to make it stop up the water, and down to drain (it had broken) and about a cold water faucet in the kitchen that was hard to turn.  They said fine, they'd send an A-1 plumber out and a First Rate electrical appliance person out, and it would be $60 each.  So much for what the salesman said. 

The microwave repairman came in, opened the door to the microwave and said, "It's the broken shelf hardware that's sparking.  I'll order the part," and he left, never to be heard from again.

The two (2) plumbers showed up to fix the faucet and drain.  They were there in and out for the whole stinking day.  They were working tandem on the faucet, and instead of fixing the cold water handle, they broke snap in two the hot water handle (why were they turning it?)  They spent many hours under the sink.  (It was the faucet that was hard to turn - would a shot of WD40 have helped?  - wish the realtor had thought of that before calling).  The two men left 3 times to buy parts.  It takes two men to pick up those great big old handles, and plugs for the bathtub.  After they worked all day they informed the homeowners that they couldn't find the faucet handle, so would have to order it.  They left the bathtub all screwed together looking good.  

Next morning the realtor pulled the plug handle to run water, and low and behold nothing happened.  It drained out.  It was not fixed.  She stuffed a rag down the drain so she could hold water long enough to take a bath, went to the Dollar Tree and bought some little plastic hole plugs and continued taking baths.

A week went by with no repairmen coming with ordered parts.  But low and behold in the mail one Saturday morning came a bill.  A bill--what for.  It appeared the microwave repairman forgot to ask for his $60 for opening the door to the microwave, making a pronouncement and leaving.  The two plumbers who worked all day destroying the plumbing sure didn't forget theirs.  Well, the realtor has a little bit of a temper - she got it from her father.  She called the national phone number for the warranty company and was told by an uppity young fella that "She should read her policy.  Hardware on the microwave was not covered."  He then explained that she owed the $60 for the man walking in her door.  Let's say the temper-ridden realtor let off a little lava as her volcano exploded!!  She informed the young man about everything that had happened, that she sold these warranties to new home buyers based on her opinion of what companies were good, and she would never, ever sell another one of theirs.  He asked to be excused and disappeared for about 10 minutes.  He came back to the phone not so uppity, and apologized profusely for what had happened, and he assured her that he personally would make sure the plumber would be out on Monday to fix the faucet and bathtub, and that he'd get a microwave repairman out, but she'd still have to pay the $60.  All appeared to end well that started disasterously (is that a word?).

So Monday came and went, and came and went and came and went and came and went, and after a month of no repairmen, using a plastic plug and cutting her hand on the broken handle on the hot water, the realtor called the lovely, always helpful, salesman and told her that she'd never use their company for buyers ever again (or sellers, as she usually bought a policy while it was listed for the sellers to protect them against inspectors --that's another funny story).  The sweet and always helpful salesman (did I mention that this sweet salesman is one gorgeous blonde with long legs and easily a Miss America?)  called back and said repairmen would be there in the morning.  Of course, once she got involved that is exactly what happened.  Oh, yes, realtor made her promise it would not be the A-1 great plumbers from before.

So the next morning the new plumber arrived, put down a rug outside her front door, put baggies on his shoes, and commenced to assess the situation.  He determined there was NO faucet handle that would fit the 7 year old faucet and a new system  would have to be bought.  The realtor met him at the local Home Depot and picked out a faucet that looked remarkably like the old one, except without pearl white handles.  After she left him, the warranty company said that was an upgraded faucet and would not be covered.  Only a plain jane faucet is covered.  Realtor called the gorgeous salesman who is always helpful and explained that their A-1 plumbers broke the faucet which was an upgraded faucet as it was put in by realtor and new husband 7 years earlier when they remodelled their kitchen.  As usual the salesman got on the phone and got the purchase approved.  (they should just let the salesman run the company - she's the only person there that has people skills).  The plumber then came back and installed the new faucet perfectly and fixed the plug handle in the bathtub and even fixed a problem with the toilet that wasn't mentioned earlier.  He left the house cleaner than he found it (obviously he should be considered a great substitute for a housecleaner), and ARE YOU READY FOR THIS - he said the company had waived the $60 fee.  He advised this was the first time ever he had heard of that happening, and he was wondering how she pulled that off.

The microwave repairman, also a different one, came, saw, got part, and fixed the microwave in one morning, and left without wanting $60 - again it had been waived.  Again, she was asked how she'd pulled that one off.   Obviously it was the leggy blonde salesman that had made it happen.  She should run for President!! 

All is well that ends well, right?   NOT.  The warranty ran out, the realtor decided not to renew and to not deal with this company again.  NOT END OF STORY. 

Realtor has a house listed that the owner had their own warranty. Owner moved 9 hours away and Realtor took on the task of house babysitter.  Not a hard thing, as this is a great house and Realtor enjoys babysitting great houses.  She let the floor man in everyday for a week while all the floors were refinished, in an amazingly gorgeous manner.  She helped the owner paint a room in a nice neutral color.  She arranged for the hubby to be available to let sprinkler man in to repair the sprinklers, and she even got hubby to be the yardman for this super nice home.  And after the holidays, the home sold, and an inspection was performed.  (Remember some day we will cover those too.). 

The morning after the inspection the voicemail arrives that the inspector left the day before.  (another blog about phone companies that never send voicemails the day they are left is a subject for later).
The voicemail said he was at the house and that he had finished his plumbing inspection but now there was a leak from the washing machine hot water hook-up that he could not get stopped (Funny but there hadn't been a leak there before the inspection.  Hmm, me thinks the inspector did something to the spout!!  He further states he turned the water off.  Realtor calls the seller, who says, "I'll just call my warranty company."  Woe is me, but realtor at that time didn't know that the warranty company was the same one she had used before.  Ouch,  deja vu is about to happen.

The seller, who is as nice as the salesman and just as leggy and beautiful, asked the realtor to let the repairman in that the warranty company was sending.  But realtor had to work that day so she asked her hubby to let them in.   He stayed home all day and never got a call.  Seller said they tried and he wasn't answering.  Realtor called him and he picked up immediately.  Seller checked and the plumber probably wrote the number down wrong, although nice seller tried to say she must have given it to him wrong.  You will see in a minute why realtor believes the plumber wrote it down wrong.

About 7:30 p.m. the A-1 plumber calls, did you catch that!!  Same plumber as had been at her house and broke her faucet handle, was the seller's plumber too.  He could not come that day, but would next day.  Oh, sure.  Been there, done that.  So next day hubby stayed by phone again all day, and around three-thirty seller called to see if they'd come yet.  Realtor called hubby and he said no.  Realtor explained to seller 9 hours away that they had plans to go out of town to see son coach, so seller gets on horn and gets plumber to call hubby.  Realtor gets home from work, hubby takes shower and plumber calls.  So Realtor goes to house to let plumber in and read a great book loaned to her by another seller.

Realtor waits at the house for about 30 minutes.  The plumber had said he was going by his shop to pick up hose bib (or something like that).  When he finally gets there he says, "I'm here but now I have to wait until warranty company calls that this is covered under the warranty."  Did they call him to fix it; wouldn't they check that before calling.  Obviously not.  Time is running out to leave town to go to bball game.  Realtor is anxious and says, "What if it isn't covered?"   He says it would be $85 to fix.  That's just $15 more, surely seller will want it fixed for that.  Realtor calls seller, and she agrees that it's worth $85 to fix so get him started now and then he can get the ok from warranty company.  He goes to mudroom to fix and phone rings, and low and behold (don't you like that phrase) the warranty company calls and the drip is not covered by the drippy warranty. 

Realtor says well, the seller was willing to spend the extra $15.  Hold the hatches, the A-1 plumber explains that now it's $85 to fix but he still gets the $60 for coming out when it wasn't covered by the warranty, because he gets that no matter what (remember the microwave guy who came, opened door and got $60.)   So Realtor isn't so sure gorgeous, patient, seller is willing to pay $145 for a .50 hose bib.  She calls seller and lets plumber explain it.  Seller although patient isn't stupid or a person one will run over.  She tells him to fix it, and she'll give him a credit card.  No way.  They don't take them.  (Where is this company operating that they take no credit cards!!)  So he says he'll run over to her house and pick up a check.  Ha, Ha, he'd forgotten she lives 9 hours away.  So he agrees to take her address and bill her $85 and Realtor will pay the $60 since seller has reimbursed her in advance for that.  Seller in the meantime can call warranty company and yell at them.  No, way.  Not her.  She has more class than Realtor, she reads the policy and sees it wasn't covered.  But she is still angry they didn't determine that before sending a $60 man to the house.  They tell her that is because she didn't talk to a person but an automated phone system (Remember the Realtor only dealt with real people and she still got the same treatment.) 

So plumber is to fix the problem.  Then he annouces he brought a 3/4 inch hose bib, and he needs a 1/2 inch one and is going to Home Depot.   Wait, No, Please.  Remember the 3 trips he made to Home Depot at Realtor's house.  Will she ever see him again.  Will he be back today or a month from now.  Realtor calls hubby and tells him she is stuck in deja vu land.  He laughs.  Plumber returns, and fixes the problem.  Yipidee Doo Dah.  Yipidee Day.  My oh my what a wonderful day.   NOT SO FAST BUB.

Plumber nonchlantly announces he's going outside to turn on water.  Realtor continues reading her book and then...gurgle, gurgle, rooarrrrrr.....spew.  Water explodes out of the wall hitting the wall 10 feet away and flooding the mudroom - yes on the newly refinished floors.  Realtor runs screaming out the door yelling, Stop, Stop, Stop, Stop at the top of her voice.  Plumber looks up as she rounds the fence to the alley screaming stop!!  He runs toward her to only find that the mudroom is now a fountain of water as if we were at the Wishing Fountain in Rome.  He screams, the handle must have been in open position.  What.  He didn't know which direction was on and which was off.  Oh, yes, he's an A-1 plumber.  Realtor is freaking out!!  Newly refinished floor, newly painted wall, all being soaked.  When he turns the water off, it's not leaking and plumber says, "Well, at least it's fixed."  Realtor is standing in water not knowing what to do.  Plumber says, "I have a towel in my truck."  Let me say here that the water has run from the mudroom to the kitchen and up around the eating bar on more refinished floors.  In the mudroom its at least 1/2 inch deep, and he's gone for a towel.  Realtor knows that will not do.

Realtor calls hubby, and asks him to asap grab as many towels as he can, a mop and get his buns over there.  Then she notices that the plumber is cleaning the water with his jacket.  He forgot he had the boss's truck and he didn't have a towel.  Realtor goes to garage and finds a roll of paper towels and a flat mop and she uses it to push water toward back yard and the plumber wrings out his jacket, sops up water, wrings out his jacket, sops up water, and Realtor uses the whole roll of paper towels and there is still water everywhere.  What is she going to do.  She is so afraid the water will get under the linoleum (newly refinished) and buckel the floor, so she goes to her car which is a disaster filled with many items, and finds a red table cloth used for staging, and between the two of them gets all the water absorbed and dried.  Hubby is called not to come, he was just leaving the house.

Plumber gets his $60, gives Realtor a receipt, takes gorgeous seller's email address and leaves.  Realtor calls seller as she drives home and sends her into fits of laughter as she relates the story of Deja Vu, and when Realtor gets home, hubby and realtor decide no way to get to bball game, but they deserve a treat.  So off to On the Border they go and enjoyed a very quiet, dry dinner. 

So the moral of this story.  Even if the salesman is a gorgeous, awesome, can-do person, who looks like Miss America, if she has an A-1 plumber, go for a B-2 plumber, and do NOT renew your warranty with this company.