Wouldn’t I go to jail if I committed mortgage fraud?
Posted at 3:21 PM, Oct. 23, 2008
The Forgotten Homeowner: What happened to childhood values when we grew up?
My husband and I purchased our home in 2005. This was NOT intended to be our retirement home. However, with the entire neighborhood foreclosing or doing short sales, we’re still down over 50% in our home and we can never leave unless we want to buy ourselves out of it.
We did the right things:
- We put 20% cash down
- We did not take the builder’s offer to add our window coverings into the loan, we paid cash
- As a licensed realtor, I did not take my real estate commission as income, but added it onto the down payment
- We made the choice not to go through the builder for the flooring because they were so overpriced –so we did our research, saved our money and paid cash for our travertine, wood and nice carpet.
We should have chosen the thickest granite, floors with gold trim and the works through the builder.
In school, we’re taught that “good kids get rewarded for good deeds”. We got gold stars for doing the right thing and good grades. What happened to that philosophy when we became adults?
My husband and I elected to do a 5 yr ARM so that we could pay off a land investment within that 5 yrs by paying interest only on our primary. Since lenders gave loans to people that truly didn’t qualify and credit card companies keep passing out money like it’s water, our neighbors are dropping like flies.
Our 5 yr ARM comes due in 2 ½ yrs. Trying to be proactive, we called our lender, Countrywide, and spoke to about 15 different people to find out what our options were. We can’t refinance because our mortgage is still more than the current value of our home.
We asked how we qualify for a loan modification. Countrywide’s representatives consistently said the same comment, “You have money in the bank? You have no credit card debt? You have no car payments? You still have jobs?....” So sorry, but since you can overpay for your home, you will. Unless, of course, you want to do a short sale, we can do that for you.
Do I understand this right or am I missing something? Countrywide would rather lose more money and give my house to a total stranger than work something out that’s a win-win situation and keep a good paying customer and let me stay in my home…..REWARD me for doing the right things.
I’m sorry, did you say it’s MY fault, Countrywide? Weren’t you one of the companies that went out of business by giving out money to people that YOU shouldn’t have? Isn’t it YOUR fault that all my neighbors are leaving their houses through the infamous “buy and bail” or simply foreclosing because they can no longer afford the house and credit cards that YOU approved them for?
Did I hear that the government is bailing out some of these financial institutions? Wouldn’t I go to jail if I committed mortgage fraud? What incentive is there for the good paying homeowner who saved money to buy their house, doesn’t have credit card debts or auto loans, and wants to save for retirement? There isn’t any. So, what’s preventing me from buying another house at a blue light special price and walking away from this house? There isn’t a lot of incentive for me not to, is there?
This principle is broken. They came out with the Mortgage Debt Forgiveness Act of 2007. Why don’t they come out with the “Mortgage Debt Forgiveness Act of 2008” for homeowners that purchased a home in 2005 or 2006, is a primary residence and fully qualifies for their mortgage, and refinance it into a 30yr fixed at today’s market value? Why doesn’t some of that bailout money go there instead of paying for multi-million dollar severance packages and spa treatments for the crooks who committed mortgage fraud?
If I have 20% down for another home, there is nothing to stop me from bailing. Bad credit? Who cares! And, I’m actually now contributing to the decline of the neighborhood by leaving another vacant home that will undoubtedly get vandalized and cleaned out. At least I’ll have my dignity knowing that the only person looking out for ME is ME, and I took action. We’ll be somewhat better off in saving for our long term future than sitting here in a box that’s declining in value daily.
And, now we’re hearing from the most likely Presidential candidate to win that our taxes might actually increase because we should feel so compelled to pay more as an “American” to help the “less fortunate” because we can. So, now the government’s going to pick my charity too. God help us all.
The Rotten House
Posted at 4:18 PM, Feb. 20, 2008
DISCLAIMER: I don't condone this behavior, approve of such acts, or recommend doing this at home....but it sure is funny!! 
The Rotten House
She spent the first day packing her belongings into boxes, crates and suitcases.
On the second day, she had the movers come and collect her things.
On the third day, she sat down for the last time at their beautiful dining room table by candle-light, put on some soft background music, and feasted on a pound of shrimp, a jar of caviar, and a bottle of spring water.
When she had finished, she went into each and every room and deposited a few half-eaten shrimp shells dipped in caviar into the hollow of the curtain rods.
She then cleaned up the kitchen and left. When the husband returned with his new girlfriend, all was bliss for the first few days. Then slowly, the house began to smell.
They tried everything; cleaning, mopping and airing the place out.
Vents were checked for dead rodents and carpets were steam cleaned.
Air fresheners were hung everywhere. Exterminators were brought in to set off gas canisters, during which they had to move out for a few days and in the end they even paid to replace the expensive wool carpeting. Nothing worked.
People stopped coming over to visit. Repairmen refused to work in the house. The maid quit.
Finally, they could not take the stench any longer and decided to move. A month later, even though they had cut their price in half, they still could not find a buyer for their stinky house. Word got out to the local Realtors and eventually even the local Realtors refused to take their calls.
Finally, they had to borrow a huge sum of money from the bank to purchase a new place.
The ex-wife called the man and asked how things were going. He told her the saga of the rotting house. She listened politely and said that she missed her old home terribly and would be willing to reduce her divorce settlement in exchange for getting the house back.
Knowing his ex-wife had no idea how bad the smell was, he agreed on a price that was about 1/10th of what the house had been worth, but only if she were to sign the papers that very day. She agreed and within the hour his lawyers delivered the paperwork.
A week later the man and his girlfriend stood smiling as they watched the moving company pack everything to take to their new home......... And to spite the ex-wife, they even took the the curtain rods!!!!!!
Pets are the Latest Foreclosure Victims
Posted at 1:13 PM, Feb. 1, 2008
Could you treat your family member like this??
As more and more home foreclosures hit the market, the biggest and most unknown losers are family pets who are being deserted by their owners.
Animal welfare experts say that the United States slumping housing market has led to an increase in the number of abandoned animals. For some of these homeowners, feeding their pets is just not affordable anymore. Many homeowners are having to move in with relatives or find rentals where pets are not allowed.
Pets are being dumped all over the country. Dogs are being found in farms and domestic cats are showing up in feral wild colonies. Even worse, some pets are being left behind in their foreclosed homes without any food and water.
Many foreclosure homes and go weeks without having a showing. An animal left behind does not stand a chance. It can take weeks for an animal to starve to death. Desperate scratch and bite marks are usually found on doors, windows and baseboards.
Recently, the animal rescue group, Paw Placement, was part of a a huge rescue mission to save abandoned cats that were left behind by their previous owners in a demolished apartment building. Many of these cats were starving and sick due to neglect.
Although some pet owners may think they are doing their pets a favor by not taking them to a shelter or the local pound, they are mistaken. Pets get dependent on their owners for food and their well being. They are domestic animals that are not equipped to survive on their own. They have no chance of survival by being abandoned and their fate is ultimately a painful and suffering death.
Homeowners facing foreclosures should be encouraged to bring their pets to the local humane society or Animal Care and Control facility. In these facilities, their pet at least has a good opportunity of being adopted. Although not every pet will find a home and may be euthanized, they still have a chance. As Stephanie Shain from the humane society put it, " They'll be fed, have water and/or have a humane euthanization, as opposed to spending the last days of their lives eating carpet or wallboard."
*** Pet abandonment and pet dumping are illegal in most of the United States. In Arizona, this is a class 6 felony.
How to Come Up With a Down Payment to Buy a House
Posted at 4:38 PM, Jan. 28, 2008
It's a 'Buyer's Market' so jump in and get a great house that you own for the same amount you are renting! The dreaded down payment has deterred many qualified buyers. Coming up with a down payment can be the hardest part of affording a new house, especially if this is your first home. The good news is that there are more than just a couple of ways you can do this. We’ll take you through the top 10 ways, according to MSN.com, that will enable you to come up with that down payment!
1. Ask for help. Parents, friends and relatives may all be willing to give you a loan with favorable rates – with parents, that often means no interest rate, and no strict timeframe. If a loan (or gift) doesn’t seem feasible, maybe they would be willing to co-sign the loan.
2. Use your other assets – either by selling them, or by borrowing money against them. This can include things like cars, boats or bicycles, as well as stocks, or trinkets, such as heirlooms, or vintage trading cards.
3. If you have life insurance with any built-up value, you could cash in that value, or possibly borrow against it.
4. If you are a first-time homebuyer, you can take out $10,000 from your IRA, penalty-free, to put toward your home purchase.
5. You can also borrow against your retirement funds.
6. Sometimes you can get help from a non-profit organization, such as a church. There are loans out there that will let you put a lower down payment down, as long as a non-profit organization puts in part.
7. Increase your income by getting a second job or doing some freelance work (such as cleaning houses...)
8. If you can make it work, change your withholding taxes in anticipation of being able to deduct the interest. This will give you more take-home pay, which you can start saving!
9. Offer to give something other than cash for the down-payment. This could include offering the seller something like a car or a boat in lieu of the down payment, or it could be your services; for example, you could offer to do landscaping in the person’s new home, or give them automobile services, or do their taxes! (For the record, I don't necessarily concur with this method. Unless the seller is carrying the note, this is a mute point...unless you're talking about the closing costs.)
10. Finally, you can look for options that don’t require a large down payment. Such options include loan programs such as VA or FHA. Another option is to purchase a foreclosure property, which can often be had with little or no down payment. You can also consider getting an 80:20 loan, where you essentially have two loans; one is the regular mortgage on the property, and the other is a loan for the down payment – even through these are separate loans, they often come from the same lender.
The most important tip is to ask questions! As they say, the only dumb question is the one that didn't get asked. There have been so many changes in the mortgage industry over the past 6 months. Go to a trusted financial resource or lender and ask what programs are available. There are a lot more options than people are aware of! It can be scary to think you need to find thousands of dollars for a down payment, but hopefully one of the above methods will make things a little easier to face!
How to Bid Low Without Offending the Seller
Posted at 1:03 PM, Jan. 23, 2008
 Today's market has brought about the illusion that buyers hold all the cards and can offer whatever they "feel" is a good price for a house and that every seller should appreciate whatever they can get and be happy someone wants to buy their house. To all the buyers out there, "Control yourselves! Your ego may just possibly force you to lose a great new home for your family. You are not 'king of the hill!" To all the sellers, "Hire a professional realtor who knows how to sell a house, listen to your realtor -it's what they do for a living, and for the love of "Pete"-do NOT take offensive offers personally!"
With the market having such high inventory and either stagnant or declining prices, buyers are making ridiculously low offers to the point that it offends the seller so much that the seller won't even counter on principle alone or they counter back at full price. I've seen it over and over again and whether you agree with it or not, it is a FACT. Some sellers get so ticked off that they refuse to even sell the house to the inquiring buyer at all. Again, this is not made up material for a good article, it is really happening!
First and foremost, when looking for your next home, you should hire a professional realtor. There are several benefits in it for you, and you don't pay the realtor. We are in the business of managing the biggest asset that most people own on a day to day basis. We are experts in negotiations, real estate laws and the transaction process which could quickly turn sour if you don't have someone looking out for your best interests and who knows which questions to ask and what to watch out for.
Determine the seller's motivation. As a realtor, I know how to expertly get this information with stealth like precision. As a third party who is not emotionally involved, I can see things clearer. And, I will ask the seller's realtor a myriad of questions and then listen closely for clues to their individual situation. Such as ....the seller has already purchased another home, the house has been on the market over the average days on market for the neighborhood, their relocating to another state.....etc.. All of these things are key factors to their level of motivation to sell.
Explain your offer. I have often included a cover letter explaining my reason and/or my client's reason for coming up with that number. Sometimes, having the buyer actually write a letter to the seller making their point is a positive step. They can express their interest in the home, the positive aspects that make them want to make it their home and also their concerns about the market conditions and dropping values... I recently made an offer on a house that was in an estate sale and needed a ton of improvements. I wrote the letter to the listing agent about how our intention was to fix it up and sell it right away. With that said, the only way we could possibly buy the house after calculating the estimated costs of improvement, would be to get it at XYZ price and that we had no intention of offending the owner's family....but if they wanted to get rid of it immediately, we could pay cash and close in 2 weeks. It worked.
Prepare yourself for rejection or heavy negotiating. This is where your realtor can offer a TON of value to you. We can negotiate hard enough to get the very best price the seller will offer, but not so much that we will tick the seller off. I always try to verbally discuss the offer price and situation with the seller's realtor. I guess it's that "good 'ol boy" philosophy of doing business with a handshake. I have had positive results when the other realtor and I can talk through an offer before getting it finalized on paper. It keeps it personal and there are certain things you just can't convey on a piece of paper, such as the client's good intentions and genuine nature.
"Believe there is a great power silently working all things for good, behave yourself and never mind the rest." -Beatrix Potter
Lively Decorating Ideas are In for 2008
Posted at 6:45 PM, Jan. 22, 2008
 Breathe New Life Into Your Home! A new year brings plenty of opportunities for new beginnings, so why not give your home one? Whether you are about to put your house on the market or are just a bit bored with your surroundings, some simple changes can make a world of difference.
Slap on Some Paint
Try something different and stay away from boring beige or wimpy white. Or, at the very least, use the more muted colors with vibrant accent colors on one or two walls. "We've gone through an era of everything being very muted and quiet and what we see with the younger generation coming up is that we're really going to use lots of colors," says Dixie Lovejoy, owner of Arizona's Apple Interior Systems, Inc. "Colors on the walls, color on the furniture, such as lime greens, browns, oranges and bright reds." A fresh coat of paint will give your home an instant lift since it makes guests (or buyers) feel that your home is clean and well-kept. "Paint is a very inexpensive way to do something new and not have your house seem dated as time goes on," Lovejoy explains.
Go Big or Go Home
When purchasing accessories, buy bigger and buy less. "People used to buy accessories on a very small scale," says Lovejoy. "In our office, one of our slogans is: bigger is better." She means that things like pots, vases, flower arrangements and fountains should all be larger. Replace a lot of knickknacks with one big focal piece. You will make a statement with your decorating rather than making your home look cluttered.
Pillow Talk
Accent pillows are a key home décor item that no home should be without. Pillows can tie together your home's look, harmonizing colors from the painting above your fireplace with the antique wingback chair. "Accent pillows are kind of a key to all design that ties everything together," Lovejoy says.
Sliding Away
Sliding glass doors and even French doors are disappearing in newer homes, says Lovejoy. Their replacements are doors that virtually vanish and allow greater access to the outdoors. Installing these doors can replace the eyesore that some sliding glass doors can be. "They actually can slide all the way into a pocket that's built into the wall or stack on top of each other so it becomes one small window on the left or right side, but the rest of your house is all open," explains Lovejoy. Homeowners want more than the typical three-foot opening that French doors or sliding glass doors give. "The newest trend is opening up a 12 to 22 or 30 feet of glass," says Lovejoy. "It gives you almost the lanai effect like you have in Hawaii where the inside and the outside all become one." This look is ideal for homeowners who entertain a lot or host big events. These doors allow you to essentially merge the inside and the outside of your home.
The Outdoors Becomes the Indoors
Connected with this trend is the growing trend to decorate the outdoors like the indoors. Patios and decks with fireplaces, couches, chairs and even drapes and pictures are not uncommon and can blur the line between the inside and outside of your home. Today's designers are incorporating big patterns into velvets and sheer materials on outdoor furniture that still holds up to the elements. These materials allow you to hose off your outdoor couch or chairs or vacuum them to remove dirt or stains.
With Flooring, Hard Is In (Wahhooo!)
Carpeting is on the decline, says Lovejoy. Traditionally, homes have had carpeting in bedrooms and tile or wood in other areas. This is changing to homes that have hard flooring in all parts of the home to create a flow between the different areas of the home, as well as between the inside and outside. "That way, when you open up your house for entertaining, the patio or the lanai on the outside, or your sunroom, has the same surface as the house so you get that huge expanded feeling," says Lovejoy. Going hand in hand with this trend is the prominence of rugs. Of course homeowners want some soft areas in their homes, like near couches or beds.
Possibilities to Consider in an Adverse Real Estate Market
Posted at 4:59 PM, Jan. 21, 2008
A colleague from San Diego sent me the excerpt below, and I thought it was an excellent reminder. The industry I work in has sure had its share of blows. The media has shelled out negative report after negative report, even at times when it wasn't negative. (Remember the days of 80% appreciation in 6mths to a year and THAT was a negative thing?) Transactions are as difficult as ever and this was a fresh of breathe air (ahem! A BREATHE of FRESH air -ha ha).
I am a person who has always tried to embrace adversity as an opportunity, take proactive steps to pursue the path to a successful outcome, but even I have had my share of moments. This was an important reminder at a time when we're hearing "recession" and the country isn't feeling very confident in the decisions being made on our behalf.
Get up and get moving. No more excuses. After all, you know what they say about excuses! Start asking the right questions… instead of "why is this happening" or "why me"..how about "what can I do to bring a positive result?" or "what do I need to do to succeed in this situation?" -KJG
Your actions
Whether something is possible or impossible for you depends more on what you do about it than on any other factor. Your persistent, focused action is what brings possibilities to life.
Certainly there are obstacles that stand in your way. And you can choose to use those obstacles as excuses for not taking action.
Or, you can choose to get up, get motivated and get busy working your way toward the results you seek. Once you begin to take action, the obstacles lose their power to stop you and instead become steps along the pathway to achievement.
The actions necessary for success can often seem to be difficult, complicated, inconvenient, embarrassing, uncomfortable, tiresome or demeaning. Realize that those
undesirable qualities are, for the most part, mere inventions of your mind, and your choice to take action will override them every time.
When you know what you must do, then go ahead and make it happen. Stop focusing on the excuses and start moving toward real, valuable achievement.
Your actions have the power to change your life and to change your world. Make full use of them, and fulfill your greatest dreams.
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