Short Sale Secrets-Minnesota Under Water HomeOwners Take Note

I have just set up a new site- http://www.ShortSaleSecrets.org  This is actually a site created by Alex Charfen and the CDPE institute that is included with the advanced CDPE membership.  The reason why I selected this product is that I think it provides an incredible amount of reference material for consumers.  There are a number of FREE reports as well as a short survey that a homeowner can take to see what options might be available.  

That being said, this site is just a starting point for home owners, but it provides a lot of great information.  I live and work in Minnesota.  A Minnesota non profit institute at http://www.Hocmn.org provides resources that are applicable for MN homeowners.  Take a look at their awesome fact sheets at http://hocmn.org/en/fp-factsheets.cfm  Together, between these two resources, someone in MN facing a difficult decision will have an idea of what to consider.  Other resources include speaking with the IRS at their help line  1-800-829-1040, consulting a lawyer to review your situation specifically, as well as your tax preparer. 

Once all of that is done, and if you feel a short sale is in your best interest, please contact me to assist you in selling your home. 

Minneapolis & St Paul Announce Special Program For First Time Home Buyers

From the Minneapolis St Paul Business Journal:

Tuesday, February 9, 2010, 2:57pm CST  |  Modified: Tuesday, February 9, 2010, 3:03pm

Rybak, Coleman announce $41M for first-time homebuyers

Minneapolis / St. Paul Business Journal

Minneapolis Mayor R.T. Rybak and St. Paul Mayor Chris Coleman on Monday announced $41 million in new funding for first-time homebuyers to purchase homes in both cities.

The funding comes available through the CityLiving Program, which offers below-market interest rates on mortgages as well as downpayment and closing-cost assistance. CityLiving Program is part of the HFA Initiative, a program which Fannie Mae and Freddie Mac have purchased bonds under an agreement with the Treasury and the Federal Housing Finance Agency.

In order to quality for the funding, homebuyers' household income cannot exceed $92,290 and the purchase price (for a single-family home) can't be greater than $276,870.

"More people owning homes in Minneapolis and Saint Paul means more prosperity, more civic engagement and more vitality in our Minnesota's core cities - and that's good for everyone," said Minneapolis Mayor R.T. Rybak in a statement. "For nearly 30 years, Minneapolis and Saint Paul have worked together through the CityLiving program to help 30,000 first-time homebuyers enjoy the benefits of city life."

In addition, each city has $500,000 available for assistance with downpayments and closing costs.

Find Minneapolis homes or St Paul homes from my websites.

Veteran Buyers Eligible For 1 Year Extension On Tax Credit If They Qualify

Under the new law-Worker, Homeownership and Business Assistance Act which is now a new law as of November 2009, individuals and there spouses who serve on qualified extended-duty service outside the country for at least 90 days between January 1st, 2009 and April 30th 2010 with have an extra twelve month to buy and close on a home in order to take advantage of the tax credit.  So, they would have to buy a new house by April 30th, 2011 and close on this home within a 90 day time frame. 

Another cool twist is that the veteran won't have to pay back any of the credit if he/she has to move at least 50 miles away for new deployment that will be expected to last 90 days or longer. 

To find out more benefits for Minnesota Veterans visit Minnesota Veteran Loans

To begin a Minnepolis St Paul Home search go to Minneapolis Real Estate

Minnesota First Time Buyer Programs| MN First time buyer Tax credit

Edina real estate and Minneapolis mortgage broker have produced a local television show on community access TV highlighting the mortgage programs and opportunities in today's Minnesota real estate and Twin Cities mortgage market.  There are special programs-such as making home affordable, HAMP, HASP, and Streamline refinancing which offer opportunities to lower your payment even if the value of your home has dropped.  We may be able to help, even if the mortgage exceeds the home's value by up to 125%.   Watch the show and call us with any questions.  We only lend and work within Minnesota.

Mortgage Default Prediction

If the author of the article I've just read is correct, we haven't seen anything yet and it doesn't bode well for a real estate recovery anytime soon.  I don't want to take anything out of  context from the author.  Instead, you NEED to just go and read the article.  More troubling to me is how are we going to work our way back from the crisis?  That's the big question I have in my mind.  The solution is that we need sustainable good jobs that pay a decent income and offer some degree of security.  With the goal in mind, we need to figure out how to get there.  As a Minneapolis area realtor and MN mortgage broker, my perspective covers the entire spectrum of a real estate transaction.

Here is the article's title:

About half of U.S. mortgages seen underwater by 2011
By Al Yoon Al Yoon
Wed Aug 5, 5:12 pm ET

And here is the link to the article http://news.yahoo.com/s/nm/20090805/bs_nm/us_usa_housing_deutschebank

Has this recession stabilized and are we improving or are we headed in a depression?  We'll all know with hindsight.  I have posted the following information about the Great Depression of old.  I don't believe we are there yet, but things may get worse before they get better.   There are lessons to be learned from studying history-let's hope our politicians are good students.

The Great Depression

Many of us have heard first hand accounts about the great depression from our parents and grandparents. These stories often come about when children want something they feel they should be able to have. Many people that suffered through the Great Depression feel people today don’t appreciate all that they have. There were some world wide effects caused by this event though.

There were signs of economic trouble in many countries including the United States in 1928. The big fall came in October of 1929 when the stock market came crashing down. This date is often referred to as Black Tuesday. The trickle down effect of the money not coming in affected everyone. Companies closed down production as people weren’t able to buy their goods. Stores had to shut their doors locally as well. People all over were out of work and barely able to keep food on the table.

Farmers struggled to make ends meet even though they were still growing crops. They were only about to sell them though for less than what they were used to. As a result many of them lost their land. Those that kept it farmed less land as they couldn’t afford to continue getting the supplies. In many instances they choose only to grow enough to feed their own families for survival.

The effects of the Great Depression continued to become more desperate. It didn’t seem like the world would ever be able to rebound from it. Ironically, it was the amount of jobs created by the emergence of World War II that helped people to get back on their feet. While war is seldom considered to be good economically, this was one time when it was. People were able to have money again and they started to buy things like they once did.

For many that lived though the era of the Great Depression though they never forgot the impact. They continued to put money away and to expect such a fall to occur again. Many of them saved their money in jars or under bed mattresses. They didn’t want to trust the banks and then not be able to get their money if things in the economy didn’t survive once again

Great Depression Timeline

In order to get a very accurate understanding of what took place in regards to the Great Depression you need to start at the very beginning. This period of time began in 1929 and lasted into 1941. There are many significant things that occurred during that span of time. In 1927 and 1928 there were economic problems developing, yet it was the stock market crash of 1929 that resulted in the start of the Great Depression in the eyes of most people.

By 1931 an estimated five million people in the United States alone had lost their jobs. At the same time many banks were closing their doors due to people not being able to repay the money that they owed. Families and businesses weren’t able to walk into the remaining banks and take out loans to get themselves by. As a result many businesses had to close their doors as well.

To add insult to injury, in 1932 taxes increased at an unbelievable rate. The more than doubled in many areas, taking more of the money that people did have access to. This lead to the common practice of people working under the table so they didn’t have to report that income and pay taxes on it. Bartering became very popular too so that people could get all the things they needed without paying taxes when they purchased it as well.

In 1934 there were some efforts by the government but they were too few and with not enough funding. They pertained to gold, crops, imports, and also wages. Yet the people had taken things into their own hands by this point. They were in survival mode and willing to do what they needed to in order to get by.

With the start of World War II in 1941, the Great Depression seemed to be coming to an end. Many of the men were off to fight in the battle and that meant their basic needs were taken care of. You also had women who were filling the jobs that the men were leaving behind. Many old factories opened up again by the government in order to make various types of supplies that were used for the war.

Great Depression Causes

We often hear many of the effects of the Great Depression but what about the causes of it? Many people aren’t very familiar with what lead to all of it. There is often a misconception that all was well and then on October 29, 1929 it all fell apart when they stock market crashed. While this is a very remarkable event in the Great Depression, it isn’t what caused it. In fact, there were plenty of things going on that let to it in the couple of years prior.

The economic problems that were going on all over the world were one of the many causes of the Great Depression. People were dealing with owing money but not being able to secure a job to pay for their ongoing expenses. The losses seemed to be everywhere and people weren’t able to spend enough at the various stores out there to keep them open. They were desperate to get what they could at the lowest possible price. Only essential items were purchased.

No one could really afford to by anything extra, so the factories were shutting down. As a result more and more people were out of work. We tend to forget that all of the businesses out there that make money depend on money coming in and going out from various resources. The amount of debt that individuals and businesses had were very high and the income they had to take care of them was often next to nothing.

There were issues with the climate too that couldn’t be controlled. Severe drought in places continued to result in crops not growing. The fact that many areas were dealing with insufficient soil due to erosion wasn’t helping either. The yield from the crops was becoming very low.

Wide spread panic also contributed to the Great Depression. People lost their faith in the economics of their country. They no longer placed their money that they did have in the bank. They held onto the supplies they had and changed their way of using them. They carefully planned so they could stretch them out as far as they could. This meant they weren’t keeping the cycle of buying and paying for goods consistent.

Great Depression Pictures

Pictures are able to tell us stories that we often just can’t get from words. There are many pictures from the Great Depression that show the desperation of entire towns and even countries. Most of the people in these pictures don’t look very happy at all. There are few smiles on their faces and worry lines. Many people are ill and very thin from not enough to eat. There are pictures of empty factories and boarded up banks and retail stores.

Many of us have heard about the severe drought that was partly to blame for the Great Depression. We have all been out on windy days, but the dust storms from that era were unbelievable. Many of them give you the real concept that shows that you couldn’t even see across the street as the dust was blowing around.

There are pictures of foreclosure signs on homes and on farms. All of this is a symbol of how people were losing their places to live and their way to make a living. Without enough money to pay for them though the banks were taking them back. There are pictures from the Great Depression of families living on the streets, sitting around with the few precious possessions they happened to still have left.

Some families have pictures that have been passed down from generations that have to do with the Great Depression. They are very valued by their family and serve to remind them of what their ancestors had to endure. Many of those pictures were passed along with detailed stories of what was going on with their ancestors at the time. That really brings home the reality of this event that spanned more than a decade around the world.

There are plenty of pictures from the Great Depression that can be found online and in history books. It is important for people to take a look at them and realize there are real people involved in what they are seeing. It can help them to understand the true impact that this era of time had on the Nation. It should also serve as a reminder of where we could all be if we aren’t careful with many aspects of our economic design.

Effects of the Great Depression

The overall effects of the Great Depression were felt on a global scale. All of the various countries ended up with problems due to not enough demand for their products. Only essential items such as food were being imported and exported. Consumers didn’t have the money to buy many of the other things that they used to. The prices for these commodities weren’t getting what they used to so it was hard to make any profit at all.

Unemployment rates were soaring as businesses and factories all over had to shut their doors. With no one to buy their products there was very little reason for people to stay on. At first many of them just cut down their hours and then the number of employees. As things progressed though the businesses had to shut their doors all together. There wasn’t the access to credit that there once was. The government wasn’t able to help these businesses to meet their debts and so everyone was left out in the cold.

As a result of no money, many families found themselves living on the streets in poverty. Some parents choose to give their children to people that could care for them, and often the entire family was broken up. People died from hunger and illness while others seems to just give up on their desire to live.

People also lost a great deal of faith in their government. They had always expected they would take care of them. Now there weren’t any programs in place to assist them. There just weren’t enough shelters or food banks to offer the vast amount of supplies people needed. Everyone was on their own and it was a very difficult type of life to try to live.

Not all of the effects of the Great Depression were negative though. Many people learned some valuable things about managing their money and doing the best they could with what they had. Children from the depression grew up to be very imaginative and inventive. They also appreciated the things that they had access to in their life because they never forgot just how little they once had.
 

Making Home Affordable Plan-HARP-Could Help Clients Who Can't Sell Or Previously Refinance

This could be BIG.  Many homeowners today can't sell or refinance because the value fo their home is underwater.  This means they owe more than the home is worth.  This week, the new 75Billion dollar plan to allow people whose first mortgage doesn't exceed 105% of the value became available.  If you wan't a lower rate-before inflation kicks in due to our Trillion dollar spending-then find out more about this plan.  The Freddie Mac plan is called Freddie Mac Relief Refinance Mortgage and the Fannie Mae Product is called Fannie Mae DU Refi plus.  Already in existance is the FHA Streamline and the VA streamline.  With the FHA and VA loans, an appraisal may not be necessary.  Consider exploring your refinance options while rates are historically low.

I did a YouTube mortgage video about the plan:

I also went to Youtube to get a HARP video-more or less for fun-but to remind you of the anacronym of the Making Home Affordable Plan(it's sweet music to our ears)

Lastly, If you are thinking of buying or selling a home, there may be a payment protection plan available that you will want to explore.  I have access to this program.
http://www.authorstream.com/tag/creative+alliances

Don't Worry Be Happy By Bobby Mcferrin

In "interesting times" like those of today, one needs to look outside themselves for inspiration.  I woke up today stressed, but I made a conscious decision to remain postive and productive.  I watched a great video about deciding to make a difference.  Attitude is so important in everything we do.  Once you watch the video below and sign up for their newsletter, you will be taken to a video page with many other great inspirational videos.  I encourage you to watch a few, and then decide how your day will be

http://www.simpletruths.com/simpletruths/a.aspx?af%219&mo=stsr

After you're done with this site,  watch an all time favorite from Bobby Mcferrin- Don't Worry Be Happy:

http://www.youtube.com/watch?v=l9K4BKkLaCI

Italian Fish Soup-Whatsa Matta U-Cioppino

OK, you might be asking yourself- "what does this video have to do with real estate?"  Well, the answer is everything.  In real estate, we sell dreams, special times with family, and memories.  Otherwise, we are selling houses.  I prefer to sell homes.  Are you selling homes or houses to your clients?  We recently shot this video with the Flip Ultra this past summer.  I just turned it into a movie with the software on the web cam.  It is absolutely the best investment you will find for $150.  You don't need to be afraid of it being too complicated.  It is as easy to use as "point" and "click".  Anyway, I wanted to encourage my fellow Realtors to look at doing some inovative marketing.  For example, next time you are on a listing appointment, pull out you Flip and ask the client if they would like to give a video testimonial about the house and what it has meant to their family.  Then, post it on YouTube or some of the other video sharing sites.  You could have a link to the client testimonial with pictures of the home and possibly a virtual tour. 

Here's the other benefit.  You WILL actually use the video recorder.  You will shoot memories of your own friends and family.  I have captured some great moments that I would not have if It hadn't been for the flip. 

So here are two examples-one was our first cooking show at my house, and the other was at a commercial listing that I posted online.  I would encourage everyone to increase their technical skills.  This is a fun way to go about learning video.

FHA 203B| FHA 203 Streamline Lite Version| FHA 203K FULL version

Have you ever wanted to know the difference between FHA loan types?  We've put together a few slide shows that explain some of the characteristics of FHA mortgages.  In our Minnesota real estate marketplace, we are seeing 1/3 to 1/2 the financing being FHA.  Some of the special rehab money which would be great for scratch and dent REO and foreclosure propertys are not used often enough.  Not all lenders offer the rehabilitaion funding.  FHA 203K loans are available in Minnesota.  You may need to contact a mortgage broker who is able to do FHA financing to find this loan.  If you are a real estate agent that wants to sell more homes, you need to make yourself aware of various programs and where you can get these loans.  In Minnesota-visit http://www.VentureLoanApp.com

Free Press Release Service-Why Not Tell The World

I recently completed the CDPE-Certified Distressed Property Expert designation.  I thought the program was EXCELLENT.  I would highly recommend it to any Realtor looking to work with distressed properties.  That being said, I wanted to announce the news to the world.  The CDPE institute created a template for recent graduates to use.  This is only available if you are in their advanced program-which is $99 per month.  By the way, I love that program as well.  The founders truly care.   Here is the press release with my information as well as a link to the service I used to distribute the press release for free. 

Press Release: JOHN MAZZARA EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE

Free Press Release

Minneapolis Relocation|St Paul Relocation|Minnesota Relocation

I recently received an email with links to three excellent sites for relocation information.  These links will provide value regardless of where ever you are moving to.  I framed the title of this entry with cities around Edina MN where I live.  If you are moving to Minneapolis or St Paul or one of the 7 counties that make up the Twin Cities area and need more relocation assistance please reach out and I will be as helpful as I can.  If you want to learn about the Twin Cities real estate market, visit my real estate site at http://www.MinneapolisStPaulHomes.com

Here are the links:

FHA Streamline 203K|Rehab Loan Helps Sell Scratch & Dent Properties

The FHA 203 K streamline is back in our arsenal of mortgage programs.  Until recently there was just one investor in town offering the 203K.  That has changed.  Out of necessity, there needs to be a program that will allow qualified borrowers to obtain financing for properties that need a little bit of work. Many of the bank owned foreclosures are in need of some repair work. The regular 203K (which allows for major rehab in exess of 35K) isn't something I have access to with the investors I work with.  Trying to find that loan has proved to be impossible.  It may exist for Minnesota properties, I just haven't run across it. 

Rather than write out all the nuances of the FHA 203K streamline loan, I decided to create a power point.  You can view the particulars of how the program works at:

http://www.slideshare.net/mnguru/fha-streamline-203klight-rehab-loan-presentation/

Real Estate & Mortgage TV Shows| Marketing On TV

One of the things we do in the Twin Cities is produce a mortgage and real estate show called Dollars & Sense.  We've been producing the show for the past 5 years.  While it doesn't bring in that much new business, it is a great way to stay in front of past customers-which of course are your best referral sources.  Here are our two most recent recorded shows where we discuss the current lending environment and various mortgage loan programs.  We cover 100% financing, combo loans, the new first time buyer tax credit, the 700 billion bail out bill, the best type of investment property to purchase today in our opinion, and we offer the viewer a way to get a copy of the book I wrote on investing in real estate entitled "Reality Based" Real Estate Investing.  This book is delivered in PDF format as a series of chapters over a series of weeks.

Show # 1

Show # 2

Credit Link you or clients might find helpful

Internet Resource For Tips And Techniques

I have purchased many different products from various internet "gurus" over the past 24 months.  One of my favorites-and most affordable- is Marlon Sanders.  He has learning modules that are progressive and give you the skills you need.  Most are really inexpensive-$59-79.  If you are looking for great product and great service-you should check him out:

http://getyourprofits.com/z/499/CD30258 

Here is an article he just wrote and sent in email:

How To Cut Your Learning Curve By At Least 50%

(The Secret, Hidden Power of OMG Marketing That Saves You
Enormous Amounts Of Time, Money and Energy And Gets You
To Paydays 50% Faster -- And It Doesn't Even Cost You A
Dime)

By Marlon Sanders----

I hate learning curves.

Because they take time and cost money.  Plus, they're a pain.

What do you have to create?

* Banner ads 

* Sales letters

* Graphic design

* Affiliate site

* Web site

* Ebook cover

* Upsells

* Downsells

* Ezine ads

* Google ads

* Blogs

* Facebook sites

Would you rather find the success you're seeking in 6 months or 1
year?

Which do you prefer?

If you want to do it in 1/2 the time, if you want to be on the 6
month program and not the 1 year program, then I'm going to share
with you three simple rules to cut your learning curve by 50% or
more, speed your progress enormously and get you the results you
want many times faster.

Rule one:  You Can't Create From A Vacuum

I'm a writer by trade.

And the hardest thing to do is to write from a vacuum.  If you start
and have no input but expect to crank out output, you're in a
pickle.

That's why when you write or create, you build yourself a fodder
package.

This can be samples of other writings, quotes, materials, articles,
web sites you print, books, pages ripped out of books -- anything
that will prime your brain when you begin the creation process.

Rule Two: Always Have A Model

When I do consultations or the rare event where I critique items
for mmy customers, I notice a trend:  Almost no one follows a proven
model.

They omit obvious factors used in almost every successful sales
letter, blog, banner ad, upsell, Google ad or creative you see
online.

This goes hand-in-hand with rule one.  You can't create in a vacuum.
So build up a collection of sales letters and web sites you KNOW
work.

Then, when you go to create YOURS, make sure you incorporate all the
successful elements you see in the model or models.

I'm always taking screen caps of guarantees, headlines, page designs,
bullet points and order forms that I can use as examples on our next
project.

What you do is COMPARE what you're creating against your models,
your benchmarks, your examples in order to make sure that what you
create is up to speed.

I don't see a lot of people doing this.

What I see the vast majority of people doing is putting a small
amount of effort into the end result and not doing their homework.

Plain and simple:  The people who succeed in this business do their
homework. Those who don't, don't.

But this isn't some arduous task. 

You do it while sitting on the sofa watching TV and during
commercial breaks.  You surf web sites and save good ones to your
hard drive. Or take a screen cap of the best elements.

Then you take your MODEL or MODELS and you print them out.  Hang
out on a lawn chair or go down to your fav coffee shop and read over
them. Study them.  Sink your teeth into the copy, the headline,
the psychology.

This is EASY work.  It's actually fun. But it's extremely important.

Rule Three:  Make A Side-By-Side Comparison

After you create whatever you have to create, whether it's a banner
ad, sales letter, graphic design, web site, ebook cover or anything
else, do a side-by-side comparison.

Literally print out your web site, sales letter, banner ads, ebook
covers or whatever else it is.

Compare YOURS to your model or models side-by-side.

Look at the length, the size, the colors, the balance.

Ask others to compare the two and tell you which they feel is most
effective.

I see people creating sales letters, web sites, designs, ebooks
and sales processes without doing their homework.

It's no huge secret which sales letters do really well online.

Grab yourself one of those and compare it to YOURS.

"But Marlon, my widget is different."

This is why I have my Ateam calls.  You can do your best then show
it to me on an Ateam call and I'll give you quick feedback.

But short of that, do your searches on Google. Find other web sites
you know to be successful and compare YOUR creation with what you
see.

My message today is simple:

*  Model success

*  Do your homework

*  Make side-by-side comparisons

Typically, when someone asks me to critique their sales letter, blog
or web site, I can tell in 10 seconds -- they didn't do their
homework.

They worked without a successful model in front of their face. 

WRONG!

You get your models.  You stick them in front of your face.  You use
them as fodder for your creativity.  You don't blatantly rip off.
But you make darned sure you include the successful elements and
components. And that there's a modicum of resemblance in a side-by-
side comparison.

If you don't do your research, you're totally ignoring the immense
amount of money and time others have spent getting a model that
works.

Real world is this:  9 out of 10 things you try don't work.

That's real world.

Anyone who tells you otherwise is blowing smoke up your ying yang.

So do YOU want to be the one who goes out and tries the 9 things
that don't work?

Why not find the 1 that DOES work then use it as a model.

Now, blatantly ripping people off can be illegal, is in bad taste
and is NOT what I'm referring to.

But modelling and emulating is good. Finding all the successful
components or elements in something and making sure you use them is
GOOD!

People ask me to critique sales letters that are about one tenth the
length of any successful sales letter you can find at a similar
price point.

And they wonder what I think.

It's simple:  I think the person didn't do their homework.

Do your homework.

Model success.

You have something that is NOT working, NOT selling, NOT converting,
NOT putting bacon on the table?

Start out by comparing it to what you KNOW as a fact works.

That's a very good starting point.

Compare.

Find the differences.

Make changes.

Test again.

"Oh look!  There are testimonials here!  Oh look!  The bonuses have
more than one sentence of illustration.  Oh look!  The bonuses have
illustrations.

Oh look!  There's a certificate for the guarantee.  Oh look!  They
have 10X the raw number of bullet points I have!"

Oh look!

See, that's the power of comparison.

It's called "Oh look" marketing.

And it doesn't cost you a dime.

"OMG (Oh My Gosh) their headline has numbers an specifics in it and
mine doesn't!  OMG, their banner has a numerical benefit and mine
doesn't. OMG, this super power web site has a sales letter that
prints out to 25 pages and mine prints out to TWO!"

OMG!

If you do this, you will at LEAST cut your learning curve by 50%.
That means you can hit pay dirt in 6 months instead of 1 year.

OMG, their sales letter has subheads and mine doesn't!

OMG, their sales letter has a deadline for acting today and mine
doesn't!

OMG!

See, all those OMG's save you an enormous amount of time learning
them on your own by trial and error.

You don't need to reinvent marketing.

Marketing has already been invented.

What you need to do is to have the smarts to learn from others who
have gone before you.

I'll also add that the best investment you make is in your own
education, learning from those who have gone before you, tried tons
of things, cut out the 90% that don't work and share the 10% that do
work.

Marlon Sanders

P.S.  "OMG, this sales letter has a PS!  OMG!"

-----------------------------------------------------------
Marlon Sanders is the author of "The Amazing Formula That
Sells Products Like Crazy."

Check out all my products here:

http://getyourprofits.com/z/499/CD30258

Remember Veteran's Day-We Live Here Today Because Of Their Service To This Country

Like many of the readers, you have had a grandparent, parent, or relative in the Military.  Today we remember their service to others.  My deceased Grandfathers flag is proudly displayed in our home.  He didn't die in the service but served in WWII and is buried out at Fort Snelling along with my deceased father-in-law. 

The Government has an official site:

http://www1.va.gov/opa/vetsday/    Go here and check it out. 

Lee Greenwood says it best:

Minnesota Real Estate Agent Shares Solutions To The Current Crisis

I wrote this over the weekend in response to the crisis that we are all facing.  We need real solutions and we need them fast.  I am sharing this with people throughout the media and within our state and national government.  We, as Realtors, see solutions that others don't because we're in the trenches on a daily basis.  In my opinion, the stimulus impact  that occurs when a home is sold is quite possibly greater than if AIG or GM lives, dies or is bought out.   Think about what happens when a home is sold-money moves throughout the economy.  I believe I read somewhere that money moves 7 times.  So the impact of a 100k sale is really 700K, once the dollars work their way through everyone directly and indirectly involved and benefiting from that money.  So, helping homes move again, provides real long lasting stimulus that EVERYONE in society can benefit from.  Please share these ideas with others.  Post about, link back to it, forward it or write your own blog and improve upon them.  Collectively we CAN get the word out.  Rather than complain and be part of the problem, I challenge all of us to ACT NOW and be part of the solution!  Help educate and inform people that have the ability to affect change.  They only know what they know. 

WE'RE ALL IN THIS TOGETHER-THINK OF THE POWER OF OUR COLLECTIVE EFFORTS-WE CAN MAKE A DIFFERENCE!

• The current real estate market does not have enough buyers for the current housing inventory. There is a larger supply of homes than buyers to purchase them. Buyers are not motivated. Instead, they are waiting for prices to drop further. They see no end in sight and no reason to take action today. Cities are losing revenue on lower valuations and sellers can’t sell if they ultimately don’t have enough equity to make a move to their next home. We need to put a floor under the valuations of housing so that housing can move forward. 
• Loan options have been dramatically reduced. Unless you are a Veteran, there are few options for buyers who lack funds for a down payment. Credit worthy borrowers are unable to buy homes and are forced to remain as renters. Often a rent payment would be equal in cost to that of a mortgage payment. The key is transforming renters into homeowners. 
• There is no liquidity in the Jumbo loan market. There are a number of reasons for this. The Jumbo loan market pertains to loans that are larger than $417K. Currently, Jumbo loan underwriting requires borrowers to have larger down payments as well as undergo more stringent qualifying requirements. Larger loans also are charged higher interest rates. In years past, the additional interest rate cost was generally .375-.625% more than with a conforming loan. Conforming loans are loans that are $417K or less. In today’s lending environment, Jumbo loans have a much larger interest rate differential-upwards of 1-2% above conforming rates. This additional interest rate cost is dramatically reducing the demand for these loans and the housing at the upper end of the housing market. Because of this, we are experiencing an even larger drop in valuations associated with higher end home prices.  The market values in this price bracket will continue to fall as fewer buyers will be able to qualify or even want to pay the higher interest rates.
• Foreclosures with bankruptcies are increasing. This is occurring because of personal life circumstances and our economy. In many cases, tax laws are not conducive to either pursuing a short sale, selling for less than the mortgage value,  or establishing mitigated payments to reduce mortgage debt. Current laws only benefit sellers engaging in a short sale under certain circumstances. From a tax perspective, doing a short sale may cause you to incur a tax liability on the amount of forgiven mortgage debt if you’ve refinanced your home or if the property in question is not your primary residence. Bankruptcy may be the only way to get out from the tax liability on this forgiven debt.
• The stock market is increasingly volatile. Much of the volatility can be attributed to short selling and naked short selling in particular. Short selling involves selling shares that you don’t own, hoping to buy them back later at a lower price. You must borrow these shares in order to sell them short. Current law was changed about 18 months ago to allow you to sell shares short while the price of the stock was falling. This is analogous to throwing gas on a fire. Previously, the law allowed you to sell short only when the stock was moving upward. This is called the uptick rule. By removing the uptick requirement, you’ve unleashed the potential for abuse, as a stock could be sold short as it drops in price, driving it into the ground. Naked short selling involves selling shares that don’t even exist, thereby flooding the market with an inflated inventory of shares at the worst possible time, helping to drive prices lower by creating a huge influx of supply when there is no demand.

• We NEED to get more buyers into the housing market. HOW can this be done? Bring back seller funded down payment assistance. This allows the seller to provide a gift to a charity which can be equal to the amount of down payment and closing costs. This amount is then given to the buyer from the charity to use as a down payment. In essence the seller funds the buyer costs and the charity was the conduit or pass through entity that delivers the funds. This was extremely useful to borrower’s who could qualify for a loan but lacked the funds to make their purchase. This down payment program arrangement worked with FHA loans and WAS funding 40-50K home sales across the country monthly. When we need more buyers in the market, we never should have removed a program that was working and encouraging home ownership. It was eliminated October 1, 2008in the last housing reform act bill. Was the program perfect? NO. Could slightly different underwriting guidelines be put in place to make it better? YES. What is the cost to the tax payers? ZERO. Remember the down payment funds came from the seller’s equity.   The solution involves fixing the down payment assistance program to make it better, not eliminating this extremely useful program.
• There is a new law that provides a first time buyer tax credit that is repaid over 15 years. This credit expires in June of 2009. A solution would be to make the tax credit permanent. Consider making it better by removing the repayment feature if you stay longer in the home. The credit could be forgiven over time. This would be an enhancement. The cost to tax payer would be VERY LITTLE.
• Bring back 100% financing. We have a model of success-called the VA loan. It has worked extremely well for Veterans since WWII. If you are credit worthy and don’t have a down payment or money for closing costs, you could still be able to make the monthly payment.  The programs longevity provides us with a working model. The government could create a similar new loan program for everyone OR allow everyone the opportunity to qualify under VA guidelines.   Don’t just limit eligibility to Veterans. The cost to implement this would be ZERO
• Current underwriting guidelines make most people ineligible for a new mortgage loan after a bankruptcy or foreclosure. The current timeline is 1-4 years for a bankruptcy depending on the type of bankruptcy and the specific reason it occurred. The time line from a foreclosure is 2 years if you are a Veteran, otherwise it is generally 4-7 years before it is no longer an underwriting issue on conventional loans. Many of the people who have lost their home would like to be home owners again. By keeping these potential buyers out of the markets longer, the housing inventory will remain high and prices will remain low. Why not change the underwriting guidelines? Instead of 4-7 years, make it 2 years. You could add extra requirements for these borrowers such as tighter underwriting, requiring them to attend mandatory budget counseling classes. They must re-establish a pattern of responsible credit history. This change would bring many people who have been affected by this market back into being homeowners with a stake in our communities. The cost to implement this would be ZERO requiring only a change to the underwriting guidelines.
• Another mortgage solution might involve the government providing a special tax credit or incentive to buy a foreclosed or short sale property. This would stimulate demand for these properties. Instead, when people hear about a bank foreclosure, they immediately sense an opportunity to steal a property and offer less. If we made these properties more desirable, by providing an associated tax credit, we would help shore up the values of foreclosed bank owned homes. This would reduce bank inventory quicker. It would also stop the free fall of values and help the non-distressed homeowners maintain their home equity. The COST would be very little. The exact dollar amount would depend upon the type of monetary incentive which would probably be best delivered through a tax credit to the buyer. Make foreclosure properties more desirable and their prices will firm up within the marketplace.
• The government could also provide down payment and closing cost assistance as either tax credit or under an equity sharing arrangement. Again, the problem for many people is lack of funds not the lack of desire for home ownership. If a typical down payment is 3-10% of a homes purchase price, we could get a lot of homes in the hands of new home owners for very little money. Out of the $700 Billion and other stimulus packages, we ought to be able to find a few dollars for actually stimulating the economy at the ground level. Also, higher incentive amounts could be allocated to certain areas of the country or to communities’ within a state that are undergoing huge amounts of distress and experiencing spiraling devaluation.
• Jumbo loans would be more affordable and desirable if the government was able to underwrite and purchase them under the same terms under which they buy conforming loans. A conforming loan is a conventional loan with a top limit of $417K. Since the government has basically bought the GSE (government sponsored entities) Fannie Mae and Freddie Mac, they can change the authorization limit on the value of the loans they wish to purchase as well as the underwriting guidelines. Increasing the dollar limit so as to include more Jumbo loans has been attempted to some degree in previous stimulus packages. The problem is that they haven’t gone far enough. If the government needs to insure loans over a certain dollar limit, so the rates drop, so be it. We need parity in rates across all mortgage products and a better streamlining of underwriting. I am calling for all loans to be underwritten and priced the same, regardless of loan size. Pricing based on credit and down payment should be the only variables that have an impact. Size of the loan should not matter. If we loosen the higher end home underwriting to mirror that of non jumbo loans, you will help maintain the valuation of larger homes and make them desirable once again.  The lack of liquidity in higher end homes is having a very negative affect on values.
• Debt forgiveness laws need to be changed. Forgiven debt shouldn’t be taxed. We need to have other options to work out debt rather than having bankruptcy as the only option to get out from the tax liability associated with both credit card and mortgage liability. The credit card industry is clamoring for this change. The credit card crisis is upon us. We need to get out in front of the problem.  No longer can people refinance and use their home equity as a way to pay off their bills. If you incentivize people to work out their financial problems affordably, many will choose to work it out. If the only option you present, because of tax liability, is a bankruptcy and/or foreclosure, then they will choose that option. Increased foreclosures only compound our housing crisis. Cost is ZERO. Legislation may actually increase revenue as people pay something instead of nothing.
• Allowing short selling to continue, without bringing back the uptick rule is unconscionable. In my opinion, elimination of the uptick rule was one of the major causes of our stock market meltdown. Bringing back the uptick rule and eliminating naked short selling will restore value and trust to the markets. Without both, you have all the ingredients for distortion and manipulation of stock prices. You need look no further than from the time the law was changed to the present for the proof. Unless we restore confidence to the investment marketplace, we risk a protracted and weakened capitalistic society. Investing in the markets is what helps create capital and jobs.   Cost is ZERO. Bringing the uptick rule back and enforcing the short sale rules that are on the books dealing with these abuses will restore confidence in the markets.

Correct Domain Names For Your Business|Domain Name URL SEO|Virtual real estate

About 2 years ago I became an E-Pro.  I think it was one of the most valuable training classes I've taken in my 23 years of being in real estate.  One of the things they talked about was selecting a correct domain URL.  Ideally, you want something in the .com extension because it has the greatest familiarity with the consumer.  That being said, there are some unique opportunities for individuals living in certain states. 

What I'm referring to are specific country TLD (top level domains) that correspond to various state abbreviations.  For example, the following state abbreviations correspond to various countries-MN, MS, LA, MD, and SC.  There is also CA, but that has some restrictions.  Various country TLD's may carry restrictions on the use of their TLD.  MN does not have any special restrictions.   If you are a Realtor in one of the other states I've listed, consider grabbing some great real estate based URL's and either use them to do PPC, Mini site development or simply brand as your main site.  You can find many different country TLD's at http://www.MNdomainNames.com - not just MN domains.  All the country TLD's I just mentioned can be bought there. 

Since I live and work in Minnesota, I obviously prefer the .MN  In fact I not only use a number of them, I also have speculated in a number of names in other industries.  I created a website to re-sell some of my .mn domains at http://www.BuyMNdomains.com  Because very few people know about this or where they can be purchased inexpensively,  there are a lot of great domains available that would cost millions if they were in a .com.  My main RE/MAX website can be found at http://www.Selling.mn

Here is the press release announcing my site.http://www.prleap.com/pr/127691/  For the record, .MN is the extension assigned to Mongolia-NOT MInnesota   Please read the press release for the full story.

Free Calculator Widget With Either Real Estate Or Mortgage Feed For Your Blog Or Website

This was our first foray into having a piece of software produced.  It came out pretty nice.  Feel free to grab the code from the site and embed a calculator in your blog or website.  This widget is unique in that it includes a feed for either real estate or mortgage-you choose which feed you want based on the widget you choose to embed.  Have fun with web 2.0!

http://www.prleap.com/pr/127579/

Minnesota mortgage broker-Venture Development- releases Web 2.0 widget calculator tool for calculating mortgage payments and amortization schedules

(PRLEAP.COM) Twin Cities, Minnesota-Venture Development-Minnesota mortgage broker-has just launched a consumer friendly website offering visitors the chance to embed a fun and useful tool into their website or blog. This tool was developed in response to the common mortgage question "What is my mortgage payment?" Using this mortgage payment calculator, you can now find out. The site URL is http://www.MortgageWidgets.org. This little tool is called a "widget". The term "Widget" is defined by Wikepedia as "A widget is anything that can be embedded within a page of HTML, i.e. a web page. A widget adds some content to that web page that is not static." Our definition is a little simpler as we define widgets as "just plain fun." If you want to liven up a static webpage, consider adding a website widget. The best part about these calculators is that they are free! Simply copy the code and paste into your html editor. The script will take over and in seconds you will have your mortgage calculator on your webpage.

Venture Development, Minnesota mortgage broker, has created versions of a calculator widget which can be found at http://www.MortgageWidgets.org. What make their widget unique in the marketplace is that these widgets not only calculate a payment and amortization schedule, they also provide a news feed reader with real time mortgage or real estate news. This means the widgets are always adding value to the web user as they view a web page, even if they are not being used for a loan payment calculation.

There is yet another special feature. If a calculator user would like to learn more about various mortgage programs, begin an online loan application or get an interest rate quote for their home loan, they only need to click on the link embedded in the widget. The embedded link will redirect them back to the Minnesota mortgage company’s main website. If a webmaster or publisher prefers a website widget with breaking real estate news, they can select that specific script code for our real estate widget. The real estate web widget has a redirect link where widget users looking for information about Minnesota real estate can go to begin their online home search and learn more about homes in the Twin Cities real estate marketplace.

As a webmaster or publisher you have three choices on what you’d like to display. There is a mortgage payment calculator with a real estate news feed, a mortgage payment calculator with a mortgage news feed, or a series of different size banners offering the calculator that redirect back to the main widget site. The banners will
take up less space and redirect back to the main widget site where someone can then calculate a home loan payment. The banners are fun to view in and of themselves. Use a banner if you want to save space on your website or blog and still want to offer your visitors the chance to find out what a loan payment would be. Visit http://www.MortgageWidgets.org and get started today!

OFF TOPIC-New Paris Hilton Political Parody

This has nothing to do with real estate but is pretty darn funny!  I thought I'd post  the link for a little levity in this crazy world.

http://www.funnyordie.com/videos/64ad536a6d

FHA Down Payment Change WILL Hurt Home Sales-Contact Congress NOW

There will be a vote on the housing bill this week-FHA mortgage loan financing might be forever impacted.  If you want to continue to use DPA-down payment assistance funding in it's current format, you NEED-MUST contact your congressman/woman today!

As Realtors, we know how the housing market works.  The progression of home sales within the housing market is dependent on first time home buyers starting the domino affect.  Their home purchases are the catalysts that allow people to sell their existing home and then move into a new property such as a larger home, condo or townhouse. In order to keep the housing market moving forward, we need to encourage homeownership at the beginning of the cycle.  Mortgage programs that are underwritten with greater flexibility regarding credit, income and down payment will create more homeowners. We need mortgage loan programs that allow you to buy a home with as little money down as possible.   

As recently as March of 2008, there were conventional loans that allowed for 100% financing such as the Home Possible, My Community, and 80/20 combination first and second mortgage programs. Declining property values coupled with high mortgage delinquencies in all real estate markets have all but eliminated investors for these types of high LTV loans.  In addition, due to large losses by private mortgage insurance companies (PMI) there is an unwillingness of mortgage insurers to insure these loans.  Hence these loan programs have either been eliminated or now require a down payment.  With Fannie Mae and Freddie Mac's current financial problems and the overall state of the mortgage markets, don't expect that they will be creating any new high loan to value zero down mortgage products anytime soon.

Herein lies the problem.  Most first time home buyers lack sufficient resources for the down payment and closing costs. They often have good credit and the ability to make a payment. Until they save enough money, they are left out the housing market.  FHA loans currently allow buyers to obtain down payment assistance (DPA) from a relative or from a qualified down payment assistance provider.  This means that buyers without enough current resources may be able to obtain enough funds to buy a home today. There are a number of approved down payment assistance providers-some of the largest names are Nehemiah, Genesis, and Ameridream.  In a nutshell, these non-profit organizations issue down payment assistance to a prospective home buyer and then collect funds from the seller of a home who has agreed to participate in this program at the time of closing.  The non-profit charities charge an administrative fee of between $300 and $500 to facilitate with the assistance of this funding. FHA sometimes refers to this arrangement as seller funded down payment-which they don't allow.  Although the funding is coming from a non-profit, the FHA perception is that it is actually from the seller, albeit indirectly.  The problem stems from losses.  According to FHA, they have experienced larger losses on portfolios of loans that were funded with DPA funds. 

In fact, FHA hopes to eliminate these programs altogether through the fast tracked housing bill going through congress now. Time is of the essence!  The senate version-which is the supported version-will eliminate DPA.  What would this mean?  Let me make this clear-if this bill passes fewer houses will be sold.  More qualified homeowners will remain as renters.  More homes will stay on the market and the real estate and mortgage crisis will get worse.  DPA funding offers a solution to our crisis by making homeownership possible.  If there are problems with the way things are being done within the current DPA program then let's work on modifying them.  Let's identify solutions-such as raising the minimum required credit score on DPA funded loans.  This would probably lower the defaults and match the underwriting to the risk.  Elimination or outright banning of DPA programs that are currently helping our ailing housing market is foolish.  As a Minnesota FHA mortgage broker who works in the market on a daily basis, I can tell you about clients who are good people who want to become homeowners.  Their shot at owning a home depends on these programs.  Get involved and learn more.  The consequences of making the wrong decision about the fate of DPA’s will affect our entire economy.