Remember your gas bills from last winter?

If you live in the NE portion of the United States, chances are your heating bills last winter were nearly as much, if not more, than your car payment!

If you are thinking about ways to save energy this winter and are in the market for a new furnace, the following information may interest you.

What you may not know about heating with wood:

• Wood is environmentally friendly. It may not seem so, since trees have to be cut down, but trees are a renewal source of energy. Trees are also carbon neutral; that is, they absorb carbon dioxide while living, and release carbon dioxide whether they burn or decompose. Fossil fuels, on the other hand, are a one way street - only releasing green house gasses that have been captured deep in the earth for millions of years.

• Wood can save money. With the new generation of high efficiency hydronic furnaces (or wood boilers), the heat generated is much more intense than in the older furnaces and very little is lost up the chimney. These new furnaces can be used as a secondary heating method and have been shown to save up to 70% in reduction of oil, propane, and natural gas heating bills.

• Wood can be clean. Because the new furnaces burn wood at much higher temperatures, there is almost no smoke. Also, there is very little ash and the firebox only needs to be cleaned once a month, rather than every day. And, the furnace can be installed outdoors, eliminating the need to lug your logs through the house.
  

• Wood is safe heating method. Of course, as with any type of heating material, the proper precautions must be taken. Be sure to look for a wood boiler system that is both UL and CSA approved.
  
  
• I cannot recommend a brand for you, as I don't yet have a wood burning system, but if you are interested in researching your possibilities or want more information, visit www.greenwoodfurnace.com
  

Happy Burning!

And, as always, 'til tomorrow - it's all good!

More good news for the struggling real estate market!

The Wall Street Journal's on-line Guide to Property announced today that federal and state banking regulators are urging lenders and investors to restructure the loans of homeowners with interest rates that are resetting to amounts beyond their means to repay.

Many of these same loans are no longer on the books of the original lender, and so have been extremely difficult to rework with the homeowner. There will be fewer negative tax of accounting implications for those lenders and investors who buy these loans to restructure.

This is just one other initiative coming out of Washington to assist everyone in the housing industry - especially those homeowners who could afford their house payments until their interest rates reset.

Spokespeople for the National Consumer Law Center are encouraged by these new actions; stating that the consideration of loan modification is on it's way to becoming a standard practice.

As always, 'til tomorrow, it's all good!

Help from Washington for the Mortgage Industry

It was announced Friday, August 31st, that HUD will offer help to an estimated 250,000 families to avoid foreclosure on their homes by allowing them to refinance at a lower rate. This aid is available immediately.

And, in addition, HUD will launch it's new FHASecure plan in January, 2008, which will allow families that had strong credit histories before their interest rates reset to qualify for refinancing. These new programs will charge a risk-based premium based on the borrower's credit profile. Those with riskier credit will pay a higher insurance premium.

FHA transactions are expected to surpass 100,000 loans by the end of this fiscal year. And those figures do not include refinancing for delinquent borrowers.

To qualify, homeowners must meet the follow criteria:

1. On time mortgage payments before interest rate reset.
   
2. Interest rate reset between June 2005 and December 2009.
   
3. 3% cash or equity in home.
   
4. Sustained history of employment.
   
5. Sufficient income to make the new payment.
   

For more information, call 800-CALL-FHA or visit www.fha.gov and look through your old files to see if you have customers that may need your assistance with these new programs.
And, as always, remember that we are FHA certified and would love to do business with you!

So, who were the real winners in the real estate boom?

The way I see it, no one in the United States has had any long term gain from the craziness that was the real estate bubble of the last five years or so.

The big lenders that issued the "liar's loans" and sold them to foreign investors are now being forced to buy back some of those loans, and are therefore in financial trouble and are either closing their doors or laying off their staff.

So, if the lenders didn't gain, what about the loan officers and brokers? Well, if they were human like the rest of us, they all went and bought new homes and new toys when business was good, and now have no jobs and are going to be in the same foreclosure boat as the rest of the Joe Schmoes out there rather quickly. Or, worse yet, some of them are going to face prosecution for predatory lending - and do you think the big lenders that they were working for are going to pay for their defense? I think not...

So, if the lenders, loan officers, and brokers didn't gain, how about the appraisers? Well, the appraisers that played along with the game are sitting on the hot seat now, and some may well face criminal prosecution for mortgage fraud. And do you think the lenders that they were playing the game with are going to defend them? Not a chance! And the appraisers that refused to play the game are hurting, too, as orders slow down to a small trickle......it would help us reputable appraisal companies if lenders would remember that we have been on the up and up all along.

So, if the lenders, loan officers, brokers, and appraisers didn't gain, how about the homeowners? Sure, they got their homes with little or no money down, with forged documentation, or with a little fudging of the numbers here and there, but where are they now? Many have lost their homes completely and all of the hard earned cash they have paid into their mortgages. There are nine vacant homes just on the two sides of my block here - do you think that helps the market value of my home? (Not to mention, it breaks my heart to look at them every day!)

So, if the lenders, loan officers, brokers, appraisers, and homeowners didn't gain, how about the investors that are "snapping" up these bargain bank owned homes? Well, I just looked at roughly 200 listings of foreclosed homes in my city, and only about 20 of those listings were below the estimated market value of the property. Most were listed at MUCH higher prices than the real value of the property (just my opinion - but I have lived here all of my life and have a pretty good idea what a home is worth, right here and right now). So, I see a minimal number of "bargains" out there and so what if an investor does buy a "bargain"? Who is he going to sell it to? No one can get a mortgage now unless you are a "Rockefeller"! And, let's not even talk about renting it! To whom? The only jobs available in our area don't pay enough to afford to live in your parents basement, let alone a home!

So, in all of this big mess, guess who the only winners were? The foreign investors - who not only made big dividends on the risky loans when business was good, but can now force many of our big financial companies to their financial knees by forcing them to buy back a majority of the defaulted loans......way to go, America! But, I have faith that Americans are smart and compassionate enough to figure out how to fix this mess now....and I rack my brain daily for some answer. I just hope we can remember this the next time we are tempted to take a ride on Easy Street....

This is a sad blog for me to post...

August 14th, 2007 5:36 PM

If you have tried to contact us in the last couple of weeks and things seemed a little crazy here, it is because half of the office had to rush to Arizona. On July 25, 2007, my adored little grandson passed away in Casa Grande, apparently of SIDS.

I have yet to come to terms with this tragedy, but working helps me from losing my mind. He was a remarkable child and my heart is forever broken.

The following is his eulogy.

July 30, 2007
Deborah A. Seivers
A Letter To My Grandson

Dear Oliver, my precious little man,

From the very moment that I looked into your eyes, though I was thousands of miles away from you, I knew that you were an extraordinary baby. You were far more awake and alert than any other newborn that I had ever seen. When I finally got to hold you in my arms, you quietly studied my face for the longest time, like you were trying to memorize every detail.
I pulled Mama’s rocking chair up to the side of your crib that first night and held your little hand. I would doze off now and then, and every time I awoke, you were watching me; shining a light on my heart and looking right into my soul.

We are all here because you touched us all. We all carry a special memory of a special moment with you. And, so, in return for all that you gave to us, we all make these promises to you today, Oliver – our precious little man.

• We will not become splintered with sorrow – we will honor your happiness by welcoming joy into our hearts.
  And, then, we will pass it on.
  



• We will not descend into despair – we will honor your exuberance by rocking to the music of our lives.
  And, then, we will pass it on.
  



• We will not become worn with weariness – we will honor your endless energy by stepping eagerly into each new day.
  And, then, we will pass it on.
  



• We will not deaden our hurt to dullness – we will honor your curiosity by exploring that which is new and different to us.
  And, then, we will pass it on.
  



• We will not be broken by bitterness – we will honor your sweetness with a smile for a stranger.
  And, then, we will pass it on.
  



• We will not succumb to stupidity – we will honor your intelligence by seeking wisdom and growth.
  And, then, we will pass it on.
  



• We will not infix ourselves in isolation – we will honor your friendliness by reaching out to each other.
  And, then, we will pass it on.
  



• We will not become fractured by fear – we will honor your sense of daring by attempting that which daunts us.
  And, then, we will pass it on.
  



• We will not anchor ourselves with anger – we will honor that twinkle in your eye with the acceptance that dark days will sometimes come into all of our lives.
  And, then, we will pass it on.
  



• We will not harden ourselves with hate – we will honor your love by holding each other close.
  And, then, we will pass it on.
  

So, you see, my dear Oliver, my precious little man, by all of us keeping these promises that we make to you here today, your little life will change the world.
And, now, I understand, my sweet little Ollie Boo, why it was so important to you that I listen to what your bright little eyes were saying to my soul.



Love always – until we meet again.
Grandma D

The Saga of A Mortgage Broker

Appraisal Pros Prose

Saga Of A Mortgage Broker

July 19th, 2007 10:11 AM

I found this story interesting - just another one of thousands of sad, sad stories of the greed, fraud, and crime that accompanied the housing frenzy in the last 10 years that will continue to haunt every aspect of all of our lives for another 10 years!

The Saga of A Serial Broker:

Name: Altaf Shaikh

State of Business: California

1989: Altaf comes to US from Pakistan and begins work at a Taco Bell and sells leather jackets at a flea market.

1994: Takes a job as a car salesman and averages $3,000 per month.

1997: Encouraged by a friend, takes a job as an assistant manager at Ameriquest Mortgage Co., then a small subprime mortgage lender.

1999: Moves to Atlantic Financial Mortgage's San Jose branch.

2000: Hired as assistant to a loan officer at Home Advantage Corp. in Fremont.

2001: Signs on at Hampton Financial in San Jose. In the same year, he opens his own office where his business is called West Coast Marketing. He scouts for potential customers and assists them in filling out mortgage applications to send to Hampton Financial.

2002: Hampton terminates relationship with Shaikh due to borrowers' complaints.

2003: Altaf moves on to Golden Gate Mortgage in Hayward, California. Uses an alternate name - Zak Khan. Buys a $2M home with swimming pool.

2004: Moves on yet again to Secure Financial, where he brokers loans using the name Atlya Khan.

2005: Honored by World Savings Bank, along with Secure Financial, with a "Top Broker Award".

Present: Working as a car salesman once again in the Fremont, California, area.

In May 2007, Mr. Shaikh, 46 years old, pleaded no contest to charges of grand theft in a plea agreement with 9 California counties. He lied to borrowers about the terms of their loans, forged documents, and had checks written to companies that he controlled without the borrowers' knowledge. Zak Khan will be sentenced in August 2007 and will hear the amount of restitution he must pay and find out if he will serve the one year jail term requested by prosecutors.
Not present at the hearing will be the hundreds of borrowers scammed by Mr. Shaikh, including the elderly and the poor. Though some have sued the unlicensed broker, their chances of ever collecting a dime seem slim.

One year in jail seems a very light punishment for someone who has taken such advantage of those in desperate situations......

'Til next time - it's all good!

Does It Really Matter Who Tells You How Much Your Property Is Worth?

Appraisers have been accused of "sour grapes" on the whole AVM vs. human valuation of residential real estate. So, just out of curiosity, I ran six addresses that we appraised in the last six months through the Zillow software to see how close the numbers would come up. I was shocked at the results! I had always assumed that Zillow would tend to overvalue property and that only fueled homeowners' beliefs that their property is worth more than it really is. But, not one property came in at the value that we appraised it for! In fact, every single property came in on Zillow for thousands less than we appraised it for! The smallest difference was a paltry $12,000.00 (enough to make or break a purchase or a refi, for sure!), and the largest difference was an astounding $280,000.00! Averaged over the six properties I researched, Zillow undervalued properties at $141,000.00. There are many factors that contribute to the differences, but no matter which side of the argument you are on, the numbers prove that there is no substitute for the human factor in property valuation!
I read a great article recently, also, in The Detroit Free Press about AVM vs. Appraisal. It was written by Kenneth R. Harney, who is the Washington Post's real estate guru. He says, "Bottom Line: Even FNC calls appraiser-collected data "the gold standard." AVMs can be useful starting points - although Zillow's free "Zestimates" have been criticized for frequent inaccuracy by a variety of groups,.......If you truly want to know what a property is worth, don't settle for less than an experienced appraiser, live and on site."
To read the entire article, visit washingtonpost.com and search for articles by Kenneth R. Harney.
I welcome comments on both sides of this argument! Have a great day!