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August 2008

De-stressing your life

This article is by Judi Hopson and Emma Hopson who are authors of a stress management book for paramedics, firefighters and police, “Burnout To Balance: EMS Stress.” Ted Hagen is a family psychologist.

Would you like to find control buttons to reverse your stress overload? If so, you might want to try a new technique of seeing how many good options you can invent.

You might invent a new way to approach housework, a relationship problem, or a project at work.

For example, let’s say you hate grocery shopping. You go every Friday night, and it’s a pain to start every weekend this way.

What if you decided, instead, to shop every third Saturday morning?

Also, what if you treated yourself to breakfast at a good restaurant before going to the grocery store?

Or, you might decide to exercise a new option by setting limits with your grown children. You might say, “I love keeping the grandkids, but I don’t want to baby-sit every single Saturday.”

These messages are part of Judi Light Hopson’s podcasts, pinpointing the 12 areas of inventing stress management options.

Consider a business owner we’ll call Alicia. Alicia knew something had to change when she yelled at her daughter-in-law a couple of weeks ago.

Alicia returned to her office one afternoon after lunch. Her 3-year-old granddaughter was sitting behind her desk.

“My daughter-in-law, who’d gone shopping, had left the child with my assistant,” Alicia says, rolling her eyes. “Since I was going to participate in a major conference call, I had to literally park my granddaughter in the restroom with my assistant, so I could focus on the callers,” Alicia reports.

If people, pressures, the clock, or random mishaps are running over your boundaries, start to think of ways to turn the tide.

Could you do things differently? Could you state a limit with someone? Could you ask a favor of a friend to reduce your stress?

We advised Alicia that her daughter-in-law might be overwhelmed herself. We encouraged the two of them to talk, and Alicia reports that her stress is now under control.

“I’ve offered to baby-sit every other Saturday for six hours,” says Alicia. “My poor daughter-in-law has four kids and never gets a break.

“By giving her the option of leaving the four kids with me, two Saturdays a month, she can make plans to get her hair done or run errands.”

In your circle, make an enjoyable game out of inventing new options to curb stress. See how many problems and sticky issues you can find solutions to.

Ron, a policeman whom we’ve known for years, says he loves the create-an-option game. “Any thinking adult or older child can create new ways of making stress go down,” says Ron.

“My kids came up with our new housecleaning attack plan. We turn on rock music and all work together like mad for an hour two or three times a week.”

A doctor we’ll call Charles said his father-in-law had a heart attack the day before his daughter’s wedding. “We exercised the best option we could think of,” says Charles.

“We sent the limo carrying the bride and groom from the reception to the hospital for a visit with my father-in-law-and then on to the airport.”

Charles said his father-in-law was thrilled. “The bride and groom hitting the hospital in full wedding attire made the local newspapers.”

2:04 PM - Aug. 30, 2008 - comments {0} - post comment

The Housing and Economic Recovery Act

President Bush recently signed the "Housing and Economic Recovery Act of 2008" into law. This $300 Billion rescue plan is aimed at helping struggling homeowners avoid foreclosure, as well as boost confidence in the housing market. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are a few of the major provisions in the legislation that impact homeowners and homebuyers:

1. Tax credits. First-time homebuyers who purchase their primary residence on or after April 9, 2008 and before July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest free loan, paid back over 15 years at $500 per year when taxes are filed.

Special note: Some types of seller-paid down payment assistance programs are being eliminated as of October 1st as well - so purchasing a home before then may gain you a double benefit of tax credits AND seller-paid down payment assistance while it is still available.

2. Larger loans at lower rates. There have recently been provisions in place that have allowed loans larger than $417,000 to qualify for better financing rates than normally would be available for "jumbo" loan amounts of that size, thanks to Fannie Mae and Freddie Mac. Although these provisions were set to expire, they are being extended...however, the top end of the loan size that will be allowed under these programs will be dropping down from $729,750 to $625,500 as of January 1, 2009.

3. FHA Hope for Homeowners. This provision is designed to help homeowners who are "upside down" on their mortgages--that is, they owe more on their house than they can sell it for in today's market. Essentially, this plan allows homeowners who meet the requirements and are upside down to refinance their mortgage to a new 30-year Fixed FHA mortgage. There are a number of qualifying details that must be met and requirements to be agreed to -- including agreeing to split the equity in your home with the government in the future. Still, if you're upside down on your mortgage and struggling in today's economy, this is an option worth exploring in more detail.

2:00 PM - Aug. 28, 2008 - comments {1} - post comment

Saying "tell me more"

This article is by David Benzel who is an author and speaker in leadership and creating peak performance. As the founder of Winning Ways, he has worked with organizations including Allstate Insurance, Sprint/Nextel and The Villages. David is the author of the upcoming, “Chump to Champ: How Individuals Go From Good to Great” (Advantage Media).

Dad was waiting in the parking lot at the usual time. As the basketball players left the gym, he noticed his 10-year-old’s head hanging low. When his son jumped in the car, and slammed the door, the father asked, “How was practice?” The boy replied, “I hate my coach.” This kind of response did not sit well with Dad. Three thoughts rushed to his head, all fighting to be delivered in a correcting tone. First, “I’ve taught you not to speak so disrespectfully about any coach or adult.” Second, “Are you kidding? This guy is a great coach - one of the best!” Third, “Do you have any idea how hard I worked to make sure you were placed on this guy’s team?” For some reason, Dad chose not to speak any of those condemning thoughts, and instead three words came out of his mouth, perhaps three of the best words he’d ever accidentally said: “Tell me more.”

His son went on to explain the events that took place during practice. Dad knew he wasn’t getting the whole story yet, so he added, “What else happened?” Eventually - and it took a little while - they got to the part where the son admitted to getting side-tracked during practice, got caught goofing off during one of the drills and was reprimanded for it. In the final analysis, his young son was so embarrassed by the coach’s reprimand in front of the other players that it led him to declare, “I hate my coach.”

The point is this: Dad’s first, second and third thoughts - if delivered immediately -would have missed the mark by a mile. They were totally irrelevant in view of the facts, which would never have been revealed if he’d blurted out his all-knowing speech. He had been guilty more than once of jumping the gun with a quick response, but he learned so much more on this occasion with just three little words: “Tell me more.” The complete story gave him much more insight into his son, how he thinks and how he reacts.

As a business leader, you have the same responsibility a dad has to his son - listen, get the facts, determine the problem, and help resolve the situation.

Listening is an art and a skill. It requires discipline and focused attention. When you give the gift of silence, you allow others the chance to think and process their thoughts. The time required to do this varies tremendously, depending on whom you’re talking to.

When it comes to sharing thoughts and feelings about an event, there are two very different types of personalities. In both cases, the “tell-me-more” approach works well, but the timing needs to be different.

The Fast-Twitch Responder

Some people tend to think their thoughts out loud for everyone to hear - often in a very blunt fashion - then they do the editing in public, too; “Here’s what I really mean,” or, “Let me rephrase that.” They might revise their initial version of the facts several times. Typically, they quickly offer the information you’re seeking so it may seem as though very little patience is required on your part. They don’t make you wait very long, yet immediately jumping in with your assumptions drawn and conclusions blazing will most often prove to be a mistake. This conversation is a work-in-progress for this quick responder, and it’s far more prudent for you to deliver a well-timed, “Tell me more” or “…and then what?” The additional information you receive next will be worth the wait, as feelings and thoughts become clearer in the mind of this fast-twitch responder.

The Slow-Twitch Responder

Other people tend to process everything internally, preferring not to share the end result until it is edited and refined to a finished product. These people never share a verbal “rough draft.” The new stimuli they receive in conversations enters a processing chamber where it is kept, considered and condensed into manageable material. This takes time and requires patience by those who eagerly await an explanation or a report about what’s going on. Impatience at this point will cause the listener to jump straight into “tell” mode, as in, “Let me tell you what I think.” The lecture the listener delivers is usually not appreciated nor helpful. On the other hand, patience combined with thoughtful silence will usually produce a concise account of true feelings and ideas from a slow-twitch responder.

To gain credibility, learn to give space and time to others before making your verbal contribution. Give the gift of silence and let people consider their actions and their words. Use phrases like: “Tell me more.” “What else?” “What then?” “How so?” “What did that mean to you?” “How are you feeling now?” These phrases will prompt more information, which will give you a detailed understanding of people and situations. Not only will this build trust, but it will also keep you from making incorrect assumptions about people and events.

Find an opportunity to use the phrase, “Tell me more.” Resist the temptation to respond with your own thoughts until you allow them to tell you what’s on their minds. The only assumption worth having is one when you expect there’s more to the story, not one when you think you have all the answers. Nine times out of 10, your best guess about the truth will never be as rich as the story you need to hear.

1:57 PM - Aug. 26, 2008 - comments {0} - post comment

Is paper running your life?

This article by Christi Youd who is a speaker, trainer and organizer who helps others increase productivity with her company,Organize Enterprise, LLC.

Look at just about anyone’s workspace these days and you’re bound to see the same thing: piles and piles of paper…on the desk, on top of the filing cabinet and even on the floor. Paper has seemingly overrun many offices, causing stress, confusion and a lapse in productivity.

How can something as simple as paper, cause so much turmoil? The answer lies in how we deal with it. The fact is when it comes to paper clutter, many people make the “putting away” process too complicated. So rather than do something with their paper, they set it aside and pile it. Or, if it’s an active piece of paper, meaning something that represents work they need to do, they don’t have a home for that active paperwork. Those are the papers that get spread all over the desk and moved from one side to the next.

Fortunately, no matter how high your piles are or how many you have, you can control the clutter and reclaim your desktop (and even your floor). Use the following six tips to de-clutter once and for all.

1. Create a “home” for your active paperwork

Many people rely on an “inbox” for active paperwork, and that’s one of the biggest mistakes when it comes to de-cluttering. An inbox inherently lends itself to inaction. Think about your own inbox for a moment. Do you often have paper sitting in your inbox for a long time? Do papers “slip between the cracks” because they got buried in your inbox? Is your inbox regularly overflowing with papers that spread all over the desk? Most people answer “yes” to at least one of those questions.

A better solution is to have a work processing system in your desk file drawer. This tickler file system consists of a thirty-one hanging files, one for each day of the month. Behind those are twelve additional hanging files, one for each month. As each piece of active paper comes into your office, you make a decision as to what date you are committed to taking action on that paper and file it in the appropriate date’s file. If it’s something you need to schedule further in the year, put it in the appropriate month’s file. Each evening you simply pull out the dated file for the following date and prioritize all the tasks the papers represent. This one strategy keeps your desktop free of active paperwork clutter and enables you to process work in a timely manner.

2. Prepare your file drawers

Before you start filing the rest of your papers, you need an efficient filing system in place. To begin, make sure you have access to four file drawers within your cockpit. That means you should be able to reach each of the four file drawers while sitting behind your desk. One file drawer will be the tickler file system you just created. The remaining three are what’s necessary to properly fit all the documents the average person needs to keep for work.

For a filing system that is easy to maintain you need to keep it extremely simple. Therefore, create five broad categories that encompass all the kinds of papers you need to keep for your job. Why five? Research shows that the human mind can keep straight up to five distinctions without having to stop and think about it. Any more than five distinctions is too much effort, and that’s when people set the paper aside rather than file it away. An example of five broad categories may be Administrative, Sales & Marketing, Financials, Production, and Research & Development. Choose the categories that make the most sense with your roles and responsibilities.

Do not sub-divide your categories or make mini-categories within each, as that just complicates the filing system. You want to be able to find any document by merely remembering the mantra “One of Five-Alphabetized,” meaning the paper you need is in one of five categories and in alphabetical order. Keeping your filing system this simple also allows others in your office to find documents they need when you are away from the office.

3. Create individual files

Now that you have your file drawer space ready and your five categories, it’s time to create the individual files. You may prefer to delay the actual file naming process until you have gone through the paper sorting process. If so, for now simply get your drawers ready to receive all those papers.

Within each of your five broad categories you will have individual file folders. So, for example, if Sales & Marketing is one of your broad categories, your files within that category may consist of “advertising,” “media kits,” “publicity,” etc.

When choosing the headings for your files, always choose a noun and choose a broad heading. Realize that it’s better to have fewer files with broader headings, each with fifty pages, rather than many specific files, each with five pages. However, if a file becomes too large and cumbersome, you can subdivide it. Just remember that the greater number of files you have the more difficult it becomes to locate and retrieve papers when you need them. If there are a number of possibilities of where a paper could have been filed you’ll learn to not trust your filing system. As a result, you’ll start to pile instead of file.

Give each individual file folder its own hanging file. Label the hanging file and the file folder the exact same label, word for word. Then, when you pull a file out, you merely pull out the file folder. You leave the hanging file in the drawer to save its place. When you are finished with the file, read the label on the file folder and find the same label in the drawer on a hanging file. Again, keep everything alphabetized for ease.

4. Insist on proper file placement

When labeling their files, many people make the mistake of labeling one file on the left side, one label in the center, and one on the right side throughout the file drawer. Sure, this looks nice the first day you set it up, but as soon as you add a new file, you mess up your system. Soon you’re not sure where to expect the next label, so you have to slow down and study your file labels every time you need to file a paper away. This makes filing complicated. As a result, you’ll have the tendency to set the paper aside rather than file it.

A better approach is to use straight row filing, where each tab is directly behind the tab in front of it. Keep the tabs in alphabetical order. That way you know where each tab is and in what order they come. You’ll be amazed at how much easier filing instantly becomes.

5. Speed sort through the de-cluttering process

With your tickler file prepared, your filing system created, and your individual file folders ready, it’s time to tackle the mounds of paper in your office. As you handle each piece of paper, ask yourself the following questions:

- Can I discard this yet? (Under what circumstances will you for sure use this piece of paper again? If you ever did need it again, is there another source you could get it from?)
- Can I delegate this?
- Can I handle this in 60 seconds or less? (If it’s something you can do right now in 60 seconds or less and get it out of your life, then do so.)
- What date am I committed to take action on this? (Put it in that day’s tickler file.)
- What heading do I want this filed under in my files?

This is a filter system where you get rid of as much as you can. By the time you’re done with these questions you should only be left with the documents you truly need to keep. Please note that you may want to check with your accountant, attorney, or manager about what types of documents you legally have to save.

6. Insist on maintaining a proper fit inside your file drawers

You know you have a proper fit if you can open a drawer, open the file, insert the paper, and close the drawer using only one hand. If you need two hands to file the paper then you have exceeded a proper fit. When there is an improper fit the filing process becomes a bother and you tend to procrastinate filing your papers. Therefore, when your filing cabinets get too stuffed, go through the speed sorting questions again. Eliminate what you can. Move the rest to long-term storage.

Less Paper = Less Stress

When you know how to file effectively and you can keep a clutter-free desk, you’ll experience less stress and greater concentration, which ultimately leads to increased productivity. So no matter how bad the paper clutter is in your office, get started on these six tips today. A little de-cluttering effort today will yield greater productivity and profits for you for years to come.

1:53 PM - Aug. 24, 2008 - comments {0} - post comment

8 tips to help you qualify for a mortgage

Three years ago, homeowners were earning thousands of dollars just from selling their house. Home buyers were qualifying for mortgages that normally wouldn’t quality for a mortgage. It was easy to get a mortgage, because homes were flying off the market before they were listed for sale. Lenders saw dollar signs, so they found a way to help buyers get a mortgage while throwing lending principles out of the window. It’s a different story in today’s housing market. The economy has slowed down, and the free market is correcting the housing sector’s inflated success. Qualifying for a mortgage is harder than it was three years ago, but it’s not impossible.  These tips from Peoplejam may make the process easier.

1. Inspect All Three of Your Credit Reports. Pull your credit reports from Equifax, Experian, and Transunion. Make sure that all of the information is accurate. If you find an account that doesn’t belong to you, submit the necessary form to all three credit reporting agencies to dispute the account.

2. Improve Your FICO Score. Unfortunately, mortgage lenders heavily weight your lending eligibility based on a score that doesn’t accurately measure your financial stability. The FICO score only measures your ability to repay a loan. Improve your score by paying down debt, paying all of your credit accounts on time, and keeping open accounts with a $0 balance.

3. Save for a Down Payment. Buying a house with a 5% to 10% down payment shows you are serious about becoming a homeowner. If you’re looking for a Federal Housing Administration loan, you’ll need at least a 3% down payment. Mortgage lenders are more skeptical about doing 100% financing, because many of these loans are the ones going into default.

4. Increase Your Household Income. Mortgage lenders want you bringing in enough money to realistically pay for the loan. Two income families qualify easier than one income families. Pick up a second job, become a two income family, or start a home-based business.

5. Choose A Realistic Budget. The rule of thumb is a mortgage payment that is 25% of your monthly household income. Choose a price range that fits this criteria. If you make $4,000 a month, then choose a price range that gives you a mortgage payment of $1,250. The term “house poor” comes from people that spend the majority of their income on a mortgage payment. These are the same people that end up filing for foreclosure. Mortgage lenders will tell you that you can afford more than 25% of your household income, but they are the same people that helped the housing market crash.

6. Defer Your Student Loan Repayment. You get six months to defer your student loans before you need to start paying them back. If your student loans are deferred, the mortgage lender doesn’t need to include the debt in your debt ratio.

7. Stick with One Employer. Mortgage lenders like stability. Stick with the same employer for more than two years.

8. Negotiate a Price Lower Than the Appraised Value. The mortgage company will send their own appraiser out to assess the house. If you negotiated a purchase price that is lower than their appraised value, you can consider it instant equity in the eyes of the mortgage lender. You can check out Zillow.com to see the approximate value of the house.

Now is the time to buy, but lenders will no longer hand out loans to anyone. Don’t let this discourage you. Take this time as an opportunity to fine tune your personal finances. Don’t believe the fallacy that you need perfect credit to qualify for a loan. Mortgage companies are closing the doors every day. Countrywide was bought by Bank of America, and IndyMac Bank had their assets seized by the federal government last week. Lenders are looking for responsible borrowers. Your income and your credit history are the most important factors to determine if you qualify for a loan. Once you’re qualified for a loan, you can finally start the fun part of buying a house.

7:14 PM - Aug. 22, 2008 - comments {2} - post comment

A healthier you

According to the National Center for Chronic Disease Prevention and Health Promotion, Americans said they feel unhealthy (physically or mentally) about 6 days per month. www.cdc.gov/hrqol/findings.htm
In other words, for almost 11 weeks out of the year we aren’t feeling 100%. There are simple ways to improve our overall health and start feeling our best, every day. 

America’s #1 Health Problem – Stress
Whether you are troubled with work, family, friends, yourself, finances, economic hardships or world peace, you need to focus on alleviating some of your stress on a daily basis. Stress can contribute to hypertension, strokes, heart attacks, diabetes, ulcers, neck or lower back pain and can cause life threatening diseases.

Solution: Take regular exercise breaks, a 30-minute walk at lunch, or after work, can refresh and relax you. Take time to calm yourself, regain perspective on what's important or even figure out a solution to the problem. Try to identify what triggers your stress and avoid it or find a specific way to cope with it if it occurs frequently.
For more tips on managing your stress visit: http://familydoctor.org/online/famdocen/home/common/mentalhealth/stress/167.printerview.html
www.mayoclinic.com/print/coping-with-stress/SR00030/METHOD=print

DRINK WATER!
Mild dehydration is one of the most common causes of daytime fatigue. An estimated 75% of Americans have mild, chronic dehydration. The body is made up of two thirds water and dehydration symptoms can become noticeable after 2% of water volume has been lost. Symptoms include headache, off and on blurred vision, decreased blood pressure, dizziness and even fainting. The average adult requirement is 8 - 8 ounce glasses of water per day, however, you may need to consume more due to exercise, climate and illness.

Solution:Drink a glass of water first thing in the morning. Keep a bottle of water in your backpack, purse and with you at work. Every time you walk by a water fountain, take a drink. And if drinking glasses and glasses of water seems to get boring there are other foods such as juice, fruit, milk and soup that can help keep you stay hydrated and alert throughout the day.
For more information on the importance of drinking water visit: www.wikihow.com/Drink-More-Water-Every-Day www.mayoclinic.com/health/water/NU00283

Exercise
The dreaded word exercise. Exercise doesn’t have to be feared or a burden on your every day life. In fact you burn extra calories every day while doing chores without realizing it; so keep it up! By cooking dinner for 30 minutes, you burn 78 calories, even better, doing garden or yard work for 1 hour burns 320 calories, unfortunately riding on the tractor doesn’t count. Don’t think you burn a lot of calories in a day? Keep track of your exercise with a pedometer, 10,000 steps a day equals 5 miles or approximately 500 calories.

Solution: Start a new exercise regimen and set weekly and monthly goals. For example: choose push-ups and walking the first month and then every month after add another exercise. Keep a look out for local 5k walks and runs; you can benefit your health and contribute to local charities. Got kids with a lot of energy? Going for a walk around the block as a family after dinner or on the weekend will help you and encourage everyone in your family to be health conscious too. Note: Before starting any new exercise program, always check with your doctor to ensure you are physically ready.
For more information on getting your exercise routine started visit: www.americanheart.org/presenter.jhtml?identifier=1200013
http://familydoctor.org/online/famdocen/home/healthy/physical/basics/059.html
 

7:08 PM - Aug. 20, 2008 - comments {0} - post comment

National Economic Woes maybe? Part 1

This interview is between Marylyn B. Schwartz, CSP, an expert in real estate and corporate sales training/management and team development and  Robert Pardes’ (Robert@pardesconsultants.com) . She is president of Teamweavers and a trainer for Leader’s Choice.  He is a certified public accountant, attorney, banking management, real estate finance and related capital markets expert.   He is a certified public accountant, attorney, banking management, real estate finance and related capital markets expert. His company, Recourse Recovery Management Services, provides strategic and tactical services relating to impaired mortgage backed securities investments

MBS: Robert, it is an honor to be chatting with you about subjects that have filled thousands of texts and newspapers worldwide. We are attempting to render some hot topics into pure knowledge that may help our readers work more effectively within the real estate and related industries. That begs the questions, what are, and what is going on with Fannie Mae and Freddie Mac?

RP: First, let’s define what they are. Federal Home Mortgage Corporation (Freddie Mac/FM) was created in 1970 by Congress with a mission to provide liquidity, stability and affordability to the nation’s mortgage markets using private, not public, capital. Congress’ creation of Freddie Mac was a sophisticated and creative approach to the longstanding national goal of promoting homeownership, and a recognition that historically the strictly private markets had failed to provide a stable and affordable supply of credit for residential housing.

Federal National Mortgage Association (Fannie Mae/FM) was created in 1938 as part of FDR’s New Deal. The collapse of the national housing market in the wake of the Great Depression discouraged private lenders from investing in home loans. Fannie Mae was established in order to provide local banks with federal money to finance home mortgages in an attempt to raise levels of home ownership and the availability of affordable housing.

They do their jobs by buying loans from banks, thrifts (S&Ls) and mortgage bankers and either holding these loans in their portfolios or securitizing them (protecting the loans with guarantees against defaults) and selling them to investors worldwide. These entities eventually became privatized, yet they remained federally chartered, meaning they were no longer under government regulations.

They are known as government sponsored enterprises (GSEs.) By privatizing these entities two distinct and significant advantages were achieved. First, the agencies gained an implicit unlimited access to low cost government funds. Second, they were allowed to conduct activities with substantially greater leverage and lower capital levels. The government was in essence a ‘sugar daddy’ for funds in perpetuity.

MBS: Having private ownership and at the same time being required to undertake a public mission are competing interests that have proven difficult to manage. How, if at all, does that implicit funds guarantee feed into the present public ‘crisis in confidence’ that now these agencies are on the brink of ruin and/or running amuck by virtue of not abiding by sound banking practices?

RP: “There are headlines everywhere that leave the reader with the perception or reinforce the reality that these entities are undercapitalized to absorb losses relating to loans they own or guarantees they issued to other investors. They own or guarantee 5 trillion of mortgage debt, and that comprises half of the total outstanding mortgage debt nationally. They have combined capital of 55 billion.

When you do the math, on the surface, it looks pretty grim. The fear is that they could ‘eat up’ the capital quickly. If 10% of loans were in default and 1% of defaults equal approximately 25 billion in liability, a mere 3% default rate would more than wipe out cash on hand.

The national default rate of loans (that is past due or in foreclosure) as of 6/1 was 8.8%. However, Fannie Mae’s and Freddie Mac’s holdings in the risky-loan market (the so called sub-prime or non-prime loan) are nominal. Where it gets sticky, however, is that all their existing capital bases and revenues remaining are inadequate to absorb losses associated with the rapidly declining residential market conditions. In the event that their capital was to continue to show signs of depletion, international or other investors may have significant reservations about borrowing because the cost of borrowing rises when capital depletes.

Liquidity and demand for FM and FM securities would decline and they would be compromised in their ability to support the housing market’s need for loans. Does the government provide direct investment to the entities (what amounts to a blank-check bailout) or does FM and FM look elsewhere to raise capital?

There is presently a boisterous debate on this issue on Capitol Hill as well as on every talking-head Sunday news show. It is not within our imagination for these entities to fail. However, a bailout is not going to resolve the underlying causes of the problems, and now would be the right time to look at those root causes and make needed and overdue changes even if and when the needed liquidity is provided. The fact is that when the government bailed out Bear Stearns, that act turned that ‘implicit’ guarantee of funds flowing in perpetuity from the government to FM and FM into an ‘explicit’ guarantee. If Bearn Stearns was not going to be allowed to tank, how could anyone expect that FM and FM would?

MBS: Those of us who are the gatekeepers of the real estate profession are watching, with great interest, to see how this unfolds. One has to wonder if we bailout FM and FM without curing the ills that brought about this historic turn of events. What’s next? US car manufacturers come to mind… Turning to a tangential topic, what is the possible impact of banks having to take back previously bundled and sold loans (so called mortgage backed securities) from investors by virtue of those loans having been securitized by fraudulent documentation, and the subsequent investors realizing losses due to many of those loans falling into the failed sub-prime category?

RP: Notwithstanding press concerns regarding capital levels on hand of many banks, the impact on the real estate profession is a non-event. There are still many banks that are willing and ready to provide mortgage loans to qualified borrowers. Rather than to worry about more bank failures, real estate and banking professionals should be focused on creating a menu of products to meet the core housing demand. It is crucial to keep in mind that we have had sub-prime type loans for many years.

However, the balance between prime loans and sub-prime loans was maintained in a responsible way. The number of sub-prime loans granted mirrored the demographic of persons for whom those loans were created: 10-15%. It is only when banks and thrifts began to offer sub-prime loans to a broader demographic and simultaneously lowered the lending criteria for obtaining a loan did the problems begin en masse.

Non-prime lending reached upwards of 40% of all loans. There are no doubt going to be lending institutions who will continue to realize loses as a result of poorly securitized MBSs. 2 trillion total is not an unlikely figure. The impact to the marketplace is likely to be that banks will have to dedicate ‘the gift’ bestowed by the Federal Reserve of lower borrowing costs. The banks will have to make investor loans at reduced profits (lower interest rates) to help pay for the take back of mortgages previously sold to investors. There is little doubt that where there is the possibility for proving any fraudulent lending practices, those possibilities will be fully investigated over time.”

6:45 PM - Aug. 18, 2008 - comments {0} - post comment

Making changes due to gas prices

Are consumers taking drastic steps to burn less fuel and save money? Edmunds.com, an online resource for automotive information, released the results of its survey showing how consumers are rapidly adapting to the rising costs of gasoline.

“This is a fascinating insight into how quickly consumer behavior is changing in response to high gas prices,” said Philip Reed, Edmunds.com senior consumer advice editor. “Based on the results of the survey it appears we are moving into a very different era both on the highways and in the showrooms.”

The survey, available to all Edmunds.com home page visitors between June 20 and June 25, asked visitors to respond to several brief questions. The 1,312 responses indicated the following:

– 95% of respondents report making changes to lifestyle as a result of high gas prices

– Nearly 50% are driving fewer miles or combining errands to reduce fuel consumption

– 93% of respondents have changed the way they drive or maintain their vehicle

– 44% of respondents report driving slower or less aggressively to increase fuel economy

– 35% of respondents say they are already in the market for a more fuel-efficient vehicle

– Over 50% will be in the market if gas reaches five dollars per gallon

– Consumers are generally optimistic that fuel prices won’t rise much more in the near future

– 73% believe the national average gasoline price will be under five dollars per gallon during Labor Day weekend (August 29 - September 1, 2008)

12:48 PM - Aug. 16, 2008 - comments {0} - post comment

Make your guests feel at home

The summer brings family and friends traveling from near and far. Is your guest room ready to do its job? When guests arrive on your freshly swept doorstep, welcome them with open arms and a well-appointed space that they can call their own.This article by  Lorrie Browne of My Design Secrets shows you how.

Beyond decorating the guest bedroom with your own personal flair and style, be sure and furnish this room with the same consideration you give to your own bedroom. It helps to carefully contemplate how the room will be used and by whom.

Here are 7 suggestions that will make your guests stay a memorable one:

1. Cradle them in luxury. A good foundation is critical, so why not go all out on the bedding? Purchase 400+ thread count sheets along with some wonderful pillows and a comforter that suits your climate. Make them feel like they sleeping at a luxury hotel.

2. Wake them up gently. Put an alarm clock with a CD player in the room and leave them a variety of CDs. Better yet, why not burn a CD with a mix of songs for your guests to keep? This allows your guests to take a part of their vacation home with them.

3. Remember what they forgot. Put an extra robe in the closet and extra toiletries in the bathroom. Your guests will really appreciate not having to ask for these items.

4. Make room. Make sure your closet and drawers have extra space for their belongings. Nothing says we are happy you are here like some extra space and plenty of empty hangers.

5. Stay tuned in. Whether you like having a TV in your bedroom or not, most guests appreciate one.

6. Creature comforts. Put a glass of water by their bedside along with a healthy snack, like a granola bar.

7. Light the way. Make sure the room is well lit for safety and comfort. Do they have a good light for reading? How about a night light to guide them to the restroom? It is best if you have a light that can be switched from the doorway and the bedside.

The best way to assess the comfort of your guest room is to spend a night sleeping there yourself. You will be amazed at the small things you notice. This is the easiest way to get the full experience; giving you time to replace lumpy mattresses and stale towels before your guests arrive. There are many people in our lives that we wish we could see more often. It is great to show them how much you care through the little things you do to prepare for their visit. Just like a gift, it is the thought that counts most.

12:42 PM - Aug. 14, 2008 - comments {1} - post comment

Making your passwords unique

Passwords are crucial to accessing your personal accounts and information. The problem is: We all have so many accounts that we worry more about remembering our passwords than we do about making sure they actually protect our data from hackers. So we end up using passwords like our mother's maiden name or child's first name. But even if you add a few numbers to the end, those types of passwords are easy to break. And that means your data isn't safe.

The tips below can help you avoid the most common password pitfalls and even implement a few new ideas that will make your passwords easy to remember...and hard to break!

Strength Training

A well-protected password is not only unique, but also hard to guess. How do you do that? It's pretty simple really. Just follow this advice:

• Use a random string of characters. That means no sequential letters or numbers. None.
   
• Make it looooong. The longer the better--even up to as many as 10 to 14 characters.
   
• Switch things up. Use a combination of upper and lower case letters, along with a few numbers mixed in the middle or end.
   
• Don't use substitutes. Using "@" for "a" or "1" for "I" may look good to you, but most hackers are smart enough to break those substitutes rather quickly.
   
• Avoid easy targets like words straight out of the dictionary or things like family names and birthdays.

Multiplication Facts

Most of us cheat when it comes to passwords. We have trouble remembering our passwords, so we come up with two or three that we can remember and use them everywhere. But you should avoid the temptation. The fact is, once a password is compromised, all of your accounts are vulnerable. There's no way around it, you need to a way to create and remember multiple passwords--a different one for each account!

Sure-Fire Technique for Memorable, Unique Passwords

For all the advice above, good passwords come down to two things: they're easy for you to remember, and they're hard to break. Implementing the tips above can make your passwords hard to break, but what about remembering them--especially if you have a unique password for every account? Here's a sure-fire tip to help!

1. Think up a phrase. Instead of a common word or family member name, think up a unique phrase that only you know. For example, you may think up something off the wall such as "I Like Short Hair Too."

2. Make it an acronym. In our example, "I Like Short Hair Too" would become ILSHT.

3. Add Complexity. Remember those substitutes you're not supposed to use with dictionary words? Well, you CAN use them with your acronym. For example, "I Like Short Hair Too" can become "1 Like $hort Hair 2" which makes: 1L$H2. You can also use upper and lower letters to make it 1L$h2. The point is to be creative, but in a way that you can easily remember it.

4. Make it unique. A password is only really unique if you use it for one account and one account only. So you can't just use 1L$h2 for every account. And, in reality it's still too short. Here's the key to the whole process: Mix in additional letters and numbers that are unique to each account. For example, if you're logging into a "gmail account" you can use the "gm" and "@cct" (for acct) to make: 1L$h2gM@cct. Then, for a Netflix account, you may use: 1L$h2Nf@cct.

Of course, these are just examples. You'll want to be creative and think up your own acronym and ways to add unique characters for each account. And then keep that little secret to yourself so no one will be able to guess your account passwords.

Follow these simple steps and you'll have passwords that are tough to break, unique to every account, and easy to remember!

12:37 PM - Aug. 12, 2008 - comments {0} - post comment

It's true - real estate prices ARE rising

Amidst the gloom on Wall Street about housing someone forgot to check the stats. The National Association of Realtors® has now reported four straight months of rising housing prices, but it seems no one is listening.

According to NAR statistics, the median home price has fallen from a high of $230,200 in July 2006 to a low in February 2008 at $195,600, a drop of 15%. Since February, however, it has risen steadily every month. By May the index (which will be revised on July 24) had risen to $208,600, up $13,000 and a full 6.6%. Another indicator, the mean home price (otherwise known as the average home price), has also shown strength and has risen from a low of $242,000 also in February of this year to $253,100, a rise of $11,100 or 4.5%. It, too, has risen every month since February of this year.

“I just don’t know where Wall Street’s brains are today,” said David Michonski, CEO of Coldwell Banker Hunt Kennedy in New York City. “Everyone on the Street is wringing their hands over housing when in fact the average American has been out this spring buying homes and pushing the median price higher. This has got to go down as one of Wall Street and Main Street’s biggest disconnects in history.”

In addition, on an annualized basis the volume of home sales has also risen somewhat from a low of 4,890,000 homes in January to 4,990,000 in May.

“Rising prices on expanding volume should not a crisis make on Wall Street,” says Michonski.

So why the crisis?

“They say that there are bulls and bears on Wall Street but there are also pigs. Pigs try not just to profit from a crisis but create one to profit from. Today there are just so many people who have positioned themselves to profit from a crisis that they refuse to admit the reality of what is happening on Main Street. It might hurt their positions.”

Is this the bottom?

“No one can know for sure, but the hard data is clear. The median price has risen four straight months. The average American is out there taking advantage of bargains in their local real estate market. They are not listening to Wall Street but following their own belief that the best time to buy is when no one else is, and they are out there buying. If this keeps up, February may prove to have been the low in prices.”

“It is possible that it will not be Hank Paulson or Ben Bernanke who will pull this country out of a housing recession, but the good common sense of the average American whose affordability to buy a home is at a five year high and is acting on it.”

12:31 PM - Aug. 10, 2008 - comments {0} - post comment

Cost effective renovation ideas

When the housing market is hot, it seems like just about any project is a good investment for boosting your home's value and appeal. But when the market's tight, you want to be more selective about which projects you undertake and what you expect to gain in return. There's nothing worse than wasting time and money on a major project that barely raises the value of your house.

If you've been thinking about increasing your home's value or just making your living space more comfortable, these ideas can help you start off simple and prioritize your list. Before you start knocking out walls and renovating your roofline, consider these ways to make a difference...cost-effectively!

1. Spruce Up Your Curb Appeal

Buyers often decide whether to look at your house before they even get out of the car. So, before you spend a lot of time and money remodeling the inside, take a good look at the outside. Washing windows, repainting trim, planting flowers and small shrubs, trimming tree branches and overgrown bushes, fixing screens, resealing your driveway, and mowing the lawn can make a big difference. Start out by making a list of 4 to 7 simple projects and then set aside an hour or two each day. In just one week, you - and potential buyers - will be surprised how appealing and welcoming your house looks when driving up.

You may also want to consider larger projects, such as replacing the siding, adding a patio or deck, or even replacing a dilapidated driveway. But remember, although these bigger projects may help your house stand out, they probably won't yield as high of a qualitative return on investment in terms of your home's actual value. So, weigh your options and ask your Realtor® for advice before investing in any of these bigger projects.

2. Does Your Entryway Invite People In?

A cozy first impression is crucial. Now that you've boosted your curb appeal, it's time to turn your attention inside - starting just inside the front door. To make sure your entryway invites people to come in - rather than turnaround and run - try adding a wicker chair and table outside the door along with a fresh coat of paint to your foyer.

For even more impact, replace old light fixtures and update the floor in your entryway with a throw rug or easy-to-apply self-adhesive linoleum squares. These projects are inexpensive and easy enough to do yourself in just a few hours.

3. Spiff Up that Old Bathroom

Remodeling an old bathroom can make a big impact. You should start by simply de-cluttering the countertop. It's amazing how spacious even a small bathroom appears after the styling products, pictures and miscellaneous bathroom decorations are removed.

From there, you can freshen up the paint, replace that old shower curtain, add a new medicine cabinet on the wall, and even a upgrade your faucet and shower head for very little money. For a little more, you can also install a double sink or re-tile the floor.

4. Hot in the Kitchen

Renovating an outdated kitchen is practically a sure thing - as long as you don't splurge on extravagant items like hand-painted Italian tile or built-in espresso machines. Instead, focus on the basics: replacing the handles on your cabinets and drawers, freshening up the paint, installing new flooring, adding a backsplash, and painting or re-facing your existing cabinets. You can also make a dramatic impact by installing new countertops and even replacing your appliances. All of these projects will go a long way to making a new buyer feel at home.

5. Add a Second Bathroom

Perhaps no improvement makes a bigger impact on your family's comfort and your house's appeal than adding a second bathroom. The number of bathrooms is always a big sticking point for potential buyers, especially families with two or three children.

Although adding a bathroom costs more than simply fixing up your old one, it also increases the value of your house more. Plus, having that second bathroom may help you sell your house faster than if it only has one, which is an important point to consider in today's market. So, if you have a house with roughed-in plumbing just waiting for you to take the initiative, you may want to consider adding that second bathroom you've always wanted.

However, if your house doesn't have roughed-in plumbing or floor plans that called for a future bathroom, you'll definitely want to consult a professional Realtor® to discuss how much a second bathroom will add to your home's value. After all, if you have to start moving walls and re-plumbing your house just to add a bathroom, you may find that your time and money are better spent on a handful of smaller projects that will ultimately add more impact.

Plan Ahead and Avoid Headaches

Overall, the best advice about adding value to your home is to start small, work your way up, and always plan ahead. You don't want to get halfway into a renovation only to find that you have to update your entire electrical system or that your time and effort was wasted on a renovation that doesn't add as much value as you thought. With a little planning and prioritizing, you can make your house more comfortable and valuable with very little time and money. Happy renovating!

1:37 PM - Aug. 8, 2008 - comments {0} - post comment

Consider a trade

Today’s market has made the prospect of buying a home a difficult task for most people. Whether you are in the market for a first home, a retirement home or something in between, a home trade may be your best option to get what you are looking for in a timely manner.

Home trading is not a new concept, but one that is often overlooked “as people don’t take the time to understand the process, one that is quite simple,” says Scott Warren, an agent with Villa Sotheby’s International Realty.

Warren, who has been in the industry for over 30 years and completed his first trade in 1979, recently orchestrated a real estate trade that resulted in the highest sales price ever recorded in The Bridges community in California. A $7.75 million custom home was successfully traded for a $2.5 million English Tudor-style home in La Costa in a process that took just 40 days.

A real estate trade is a simple process in which a seller with good equity, good employment and good credit who wishes to “move up” is matched with a seller who has good equity, employment and credit who wishes to “move down.”

“One motivating factor behind a real estate trade is for the financial benefit,” says Warren. “One buyer sees the ability to trade up in a market in order to gain equity and the other buyer who may not want to make the payment on their home-or can’t afford to-has the opportunity to get out of the situation before it is too late.”
The trading process is as simple as “I’ll buy yours and you’ll buy mine.”

“Once the match is made, the procedure turns into two purchase agreements that occur simultaneously,” says Warren.

Home buyers need to understand that trades are not limited to trading a home for a home.

“A successful trade can occur when someone has something of value such as a car, a boat or even diamonds,” says Warren.

One of the most unusual trades that Warren has been involved in was when a client traded a load of gravel for the down payment on a property.

“This goes to show that ‘non-traditional’ trades are just as successful,” concludes Warren. It all depends on how the deal is packaged and what motivates each party.

1:21 PM - Aug. 6, 2008 - comments {0} - post comment

Rental car madness

You need to rent a car, but need a great deal. So you've spent hours online, and you finally feel confident that you've found that great deal. You've had five website windows open at a time, compared and contrasted, made your selection, finally finished filling out all the online screens, you're ready to check out and sure you're rounding the last bend...but then you come to a screeching halt. After all that work, you're staring at a field asking for a promotional code, coupon code, or rate code. And all you can think is...after all that work! If I had that secret code it could potentially save me even more money on this rental rate, but I don't know the code!

• Don't accept the prepaid gas option unless you are certain the tank will be empty when you return the car. Although this can be convenient, it can also be costly. If you choose this option, it may cost you an entire tank of gas plus a service fee when you return the car, even if you only use a few gallons!
• Before you agree to the insurance option at the counter, know the details of your own auto insurance policy. If your auto policy has collision coverage, skip the insurance option. It can save you $20 or more per day.
• Take the time to walk around the vehicle and note all the dings and scratches. This will save you the headache of being charged for damage that may not have been done while you had the car in your possession.

1:15 PM - Aug. 4, 2008 - comments {0} - post comment

Happy Flying?

Nothing puts a bigger damper on the fun than leaving for the airport with ample time to check in and board your flight, only to arrive and find out that your flight is delayed...or worse yet, cancelled. Summer is an extremely busy time of year for the airlines. When you combine the increase in travel demand with the decrease in available aircraft--due to airlines trimming the fat and cutting back on scheduled flights--there are bound to be delays and cancellations. But doing a little planning in advance could help minimize the turbulence with your summer flight plans. Here are a few tips:

1. Reservations: Just as the old saying goes, "the early bird catches the worm". When it comes to air travel, the early bird catches the flight. Booking an early morning flight may decrease the chance of dealing with flight delays or potential cancellations. Most summer thunderstorms happen in the afternoon, and booking early flights will help you avoid being stuck in the airport waiting for a storm to pass. And if your morning flight is cancelled, you will still have the afternoon to try and reschedule your flight plans. Additionally, if your flight schedule requires a connection to another flight, be sure and leave enough time in between flights to make your connections, factoring in the possibility of a short delay.

2. Check In: Save yourself some time by obtaining your boarding pass online. Simply log onto the airline's website and print your boarding pass before leaving your home or office, up to 24 hours in advance. You will improve your chances of getting a better seat by checking in early, plus save time and hassle at the airport by avoiding the kiosk or check in lines. Even if you are checking luggage, most airlines have a designated area that you can check in luggage only and avoid the boarding pass lines...or check your luggage curbside, and you're ready to head to your gate with no lines at all!

3. Luggage: But where luggage is concerned, try to travel light and carry on your luggage if possible. Carrying on your luggage will save you time hanging around baggage claim when you land, and avoid the headache of trying to retrieve luggage if it is lost. When you are carrying luggage on, be sure to be in line to board as quickly as you can - as overhead space can fill up quickly, and you might be forced to check bags anyways.

4. Airport / Flight Status: While you're printing that boarding pass out, you can also obtain information about airport delays by hitting www.fly.faa.gov. Or another great site to obtain information about airport delays or to check flight status is www.FlightStats.com. You can even sign up for FlightStats electronic alerts, and receive notifications about flight delays or cancellations via email or text message. Most airlines have flight status on their websites as well, which can also be very handy if a friend or family member is picking you up at the airport.

5. Weather: Log onto www.weather.com to check the weather in the city you are departing from as well as in the city you will be arriving at, to help determine any potential travel delays due to weather conditions. It's also helpful to know weather conditions for your destination, so you can pack appropriately.

6. Security: Even if your flight is on time and there are no delays, long lines at security checkpoints could delay you enough to cause you to miss your flight. To find out how long it may take you to get through security, visit http://waittime.tsa.dhs.gov/index.html. And a few hints on getting through security quickly - be prepared. Before you step up to the security table, remove your belt, shoes, cell phone, jewelry, keys and change from your pockets. Remove your outer jacket and place in a bin with your other belongings. Make sure your laptop computer is out of its case, and lying flat and unobstructed in its own bin before sending it on the conveyor belt through security. Keep your boarding pass in hand for the TSA agent to review - don't put it on the conveyer belt. Be aware that if your boarding pass is marked with "S's", you have been randomly selected for a full screening, and sh ould allow more time.

As you pass through the metal detector, be sure not to brush against the sides, as this will set off the alarm. Metal detectors work by measuring the aggregate amount of metal you are carrying as you pass through, and some machines have higher sensitivity than others. If your metal content exceeds the limit, the machine will beep and you'll get one more chance through. This time, be careful in trying to remove as much metal as possible, because if the alarm goes off a second time, you will have to go through the full body screening, which could delay you further. And if you do get selected for "special screening", be cooperative with the agent. They are just doing their job and working to keep passengers everywhere safe.

Taking the above steps will not eliminate delays all together, but will certainly help you avoid having to spend a good part of your summer vacation in a terminal. Bon Voyage!

1:13 PM - Aug. 4, 2008 - comments {0} - post comment

Don't become a victim of "mortgage rescue" fraud

For a homeowner facing the frightening threat of foreclosure, the offer seems too good to be true. A “mortgage rescue” company steps forward, claiming to be able to help you save your credit and your home.

In some cases, the “mortgage rescue” company provides phantom help offering to work as an intermediary with lenders, collecting an up-front fee for services it never provides or that homeowners easily could have done on their own for free.

In other scams, the “mortgage rescuer” may offer to pay off the delinquent loan and allow homeowners to stay on as renters, with the possibility of buying the home back later. But the scam artist doesn’t make the payments and homeowners, who have signed over their deed, end up losing the home and any equity they had in it.

“People who are facing foreclosure need to know there are reputable organizations and industry professionals who can help them turn things around,” said Michael Golden, president of the @properties. “A good rule of thumb to remember is if something sounds too good to be true, it probably is.”

Beth Llewellyn, CEO of the Partnership for HomeOwnership, cautions homeowners facing possible foreclosure to be careful of scams, particularly in Illinois’ larger metropolitan areas. Her information for homeowners facing foreclosure can be found online at www.YourIllinoisHome.com, a consumer site for buyers and sellers developed by the Illinois Association of REALTORS®.

“Every time there’s a drop in the market, you’re going to find all kinds of scam artists coming out of the woodwork,” said Llewellyn, who also is a U.S. Housing and Urban Development (HUD)-certified homeownership counselor with over 12 years of experience helping lower-income families achieve homeownership.

Llewellyn suggests that homeowners who find themselves falling behind on their mortgage payments contact their mortgage lender immediately to see if the loan can be restructured or refinanced before they have been delinquent on their payments for three months and formal foreclosure proceedings have begun.

At-risk homeowners are encouraged to contact a HUD-certified housing counselor who can help walk them through their options. Reputable counselors can be found through the HUD website at www.hud.gov or by calling 1-800-569-4287. HUD-certified counselors also can be contacted through the Hope Now Alliance homeowner hotline at 1-888-995-HOPE (4673) or its website at www.hopenow.com.

Homeowners also might want to contact an attorney about their legal options or a local Realtor to get more information regarding fair market housing values.

Illinois did institute tougher guidelines on “mortgage rescue” companies with the Mortgage Rescue Fraud Act in 2007. The law requires that “rescue” companies give homeowners a written contract, which the homeowner can cancel at any time, listing the services they will perform before being paid. In the case of a home sale, a written contract also is required and the “mortgage rescue” company must pay the homeowner at least 82% of the fair market value if the rescue fails.

“If homeowners believe they have been victims of a ‘mortgage rescue’ scam, there are places they can turn,” said Michael Golden.

12:54 PM - Aug. 2, 2008 - comments {0} - post comment

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