The Truth - Your Mortgage Q & A Spot

Rates are unbelievable - High 3's!!

2011-09-22T14:15:00.005-06:00

It can be a really tough decision when contemplating whether or not to lock in to a rate when obtaining a mortgage. Generally, when rates are as low as they've been, the conventional wisdom would say to lock - why risk it when the pressure is for rates to go up, at least theoretically.

Well, they keep going down. Fortunately, for those clients who were locked in the last 30-45 days, we've been able to negotiate with the investors to get their rates down. A really great option that we, as brokers, are able to offer.

Now to the good stuff - currently, rates are ridiculously low:
- 30 year fixed conventional rates as low as 3.75%
- 30 year fixed FHA and VA rates as low as 3.75%
And of course rates are even lower for shorter terms, such as 15 years.

One may ask a next logical question like: should I lock if the trend is for rates to keep going down? Well, we'd say the conventional wisdom still suggests that if you're in the market for a mortgage, either to refinance your existing mortgage or to buy a new house, it would be a bit risky to pass on these rates for the hope of them going even lower. Especially when there is the option of renegotiating the rate if it decreases enough from where you happen to be locked.

As always, feel free to contact us if you'd like to discuss your mortgage needs. (505) 830-9685.

Faced with the Decision to Rent or Buy

2011-09-06T12:47:00.003-06:00

Since the inception of the a housing market in which one can buy the home they live in, or rent from someone else, people have been wrestling with whether renting or buying is right for them.

While we don't plan on diving in to the question in this post (there are so many variables), we did want to provide you with a nifty interactive map obtained from Trulia.com. This map will at least get you started in your decision making process as it indicates statistically for many of the larger U.S. cities whether renting or buying makes the most sense.

Hope it's helpful!

Just For Fun...Yet Seemingly True

2011-03-10T09:26:00.000-07:00

Time Can Cost You

2011-03-09T12:22:00.002-07:00

Click on the title to link. This is an interesting article about the potential money lost if you wait for the market to "bottom" before buying. The money lost here would be in the form of a higher down payment because of an increased home price. The bottom line (no pun intended) is don't get greedy. The market is so down that now is the time to buy a house. And with rates as low as they are, it is the perfect storm (as we have said before).

If you need a Realtor then you need to call us first. Do not use somebody unless they are referred by someone you trust.

How Realtors Sell Their Own Homes

2011-03-08T09:29:00.003-07:00

Click on the title to link. This is an interesting article about whether Realtors sell their own homes for more than their clients, and, if so, what they do to do so.

The article says:

Most people have heard of the well-publicized statistical evidence that that when real estate agents sell their own homes, they tend to keep them on the market longer (by about 10 days) and get a higher sale price (by about 3%) than when they sell homes for their clients.

The article does point out the fact that the folks who wrote a book about this conclude that it must be greed on the Realtors part (in essence) because the additional commission is so little that they figure why bother getting a little higher price for a client. That's quite the leap, don't you think? That reminds me of this time I saw an elephant at the zoo, and, of all things, a pink crayon on the ground by their cage. I naturally concluded that there must be pink elephants then. Oh, wait...

That's the same stupid logic that the author of the book has taken. Let's take the facts instead of jumping to ridiculous conclusions.

1. Whose the seller the Realtor is dealing with when they sell their own house? That's right, themselves. I think they now best their own tolerance for risk, and what they will or will not take. When dealing with clients, all you can do is present the facts and let the sellers make an educated decision. One of those facts will be that they could turn down offer X in the hopes for another 3% (let's just use the same percentage the book says Realtors make more of when selling their home). I don't know many people who would jump at that offer unless they were hell bent on a certain price.

2. With knowledge comes power (or so they say). The job our any Realtor (or lender, for that matter) is to educate people so they can make the best possible decision for them. However, that is not always easy. People hear what they want to hear. So I could tell you that you should probably reject this offer and wait for a better one. But that does not mean you are going to listen to me.

Anyways, there are more that we could go on with. The bottom line is this...I have no doubt that Realtors make more on their homes than their clients when they sell. But that because they know the seller better than anybody else (themselves), and they know exactly what to do because they do it for a living (hence the fact that their homes are also on the market 10 days longer; they trust what they know). I'm not saying you need a Realtor to sell your home. But if you use one, then make sure you work with one you trust 100%. Get referrals, do not work with those you run into at an open house.

We work with phenomenal Realtors. If you need their services than the place to start is here with us so we can get you with one that we know will treat you like you should be treated. So give us a call.

Received A Great Letter Today...

2011-03-03T14:19:00.002-07:00

...From SunTrust Mortgage. They are one of our lenders. We have worked with them since we started the business almost 10 years ago. They are the 15 largest bank holding company in the country.

Anyways, we received a letter from their President & CEO today thanking us for our loyalty and business. He says, "Our mutual success depends on quality Brokers like you." What's so cool about this is we learned that we are one of only 5 Brokers in the entire country to have received this personalized letter.

It's nice to be acknowledged for something we work so hard at (serving our clients like nobody else). We are here for you!

10 Ways to Boost Your Homes Sales Price by Spring

2011-03-02T09:32:00.001-07:00

Click on the title to link. For any of you thinking about selling this spring, this has some great ideas to help you boost the sales price of your home. We are always here to answer any questions for you regarding the process. If you need a referral to a good Realtor then we have those also.

Foreclosure Trustees

2011-02-16T09:27:00.001-07:00

Click on the title to link. A foreclosure trustee is basically somebody or a company who is in "charge" of the foreclosure. The faster they do it the better because then they get more "business". As a result, it can be cut throat.

Refinancing Nightmares

2011-02-15T13:25:00.001-07:00

Click on the title to link. This article talks about three refinancing nightmares for people. The thing is that two of the three are typically predictable from the very beginning. They should not turn into nightmares because you should be working with people and can look at them and know if it is an issue. The only thing in here that is truly a crap-shoot is the appraisal. They, indeed, can be nightmares right now.

Foreclosures At Rock Bottom Prices

2011-02-08T11:43:00.001-07:00

Click on the title to link. This is another article on purchasing foreclosures. If you are in the market to buy a house then you will be hard pressed to not at least look at some foreclosures (or short sales). Be educated and read this article.

Will Hyper Inflation Follow?

2011-01-31T17:09:00.001-07:00

Click on the title to link. You are going to have to register on this site in order to read this article, but I assure you it is worth it. Inflation is one of those things we have been warning is coming. You have got to be realistic and prepared for it. Check out this article discussing what hyper-inflation may look like for us.

Mortgage Payment Grace Period shrinking?

2011-01-27T17:29:00.004-07:00

With the financial reform changes beginning to take affect, it's no surprise to hear that Bank of America is changing its grace period policy. After all, there will be a huge loss of revenue from profit centers such as overdraft fees. Beginning February 14th, unless you do your personal banking with B of A, the grace period for paying your mortgage serviced by B of A will shrink from 15 days to 9 days. If you have a B of A mortgage AND you do your personal banking with them, the grace period will remain at 15 days; BUT, a payment after the 9 day period will incur a $6 fee (Click the title above for related article).

There's certainly room to question this from an ethical point of view. Bank of America made an agreement to allow a 15 day grace period - is it right, or even legal, for them to change this for existing borrowers? My hunch is that this transition will occur with little resistance.

Something else to consider is whether other institutions will follow suit. I would guess the number of borrowers who wait as long as they can before paying is substantial, which means potentially huge revenues from late fees are at stake. It's going to be real difficult for the other guys to pass up this opportunity.

Some argue this is no big deal. We should all be making our payments "on-time" regardless. Either way, you may want to keep an eye on the flood of correspondence coming from your mortgage servicer to be sure you're aware of a similar change if it comes.

Foreclosures Spread

2011-01-27T09:13:00.001-07:00

Click on the title to link. I cannot imagine that anybody reading this blog would be surprised by this, but an interesting article about how foreclosures have "spread" into areas there were previously not as affected. Of course there is probably no area unaffected, per se. But interesting to read about, none the less. This kind of news will continue throughout the year.

Prepare for Inflation Fight

2011-01-21T09:46:00.001-07:00

Click on the title to link. Another article talking about the growing inflation problem. Jubak is a good writter. Check it out.

Housing Market Holding Back Economy

2011-01-21T09:34:00.001-07:00

Click on the title to link. Not sure we completely agree with this. There are plenty of things holding the economy back (unemployment, inflation, socialism, etc.). But this certainly is not helping, no doubt.

Our Next Economic Worry: Inflation

2011-01-20T11:52:00.002-07:00

Click on the title to link. We have been warning folks that this was coming, but you should be informed. Inflation is the "elephant in the room" that nobody seems to be talking about, until now. With the Feds doing what they are doing (which they clearly don't know what they are doing), inflation is inevetable. Stay alert and educated.

8 Tips for Choosing a Foreclosure Attorney

2011-01-19T09:21:00.001-07:00

Click on the title to link. Hopefully you will not need this, but just in case...

Foreclosure Record in 2010

2011-01-13T09:31:00.003-07:00

Click on the title to link. We cannot imagine this would be surprising to anybody, especially if you read this blog, but 2010 was a record year for foreclosures. What may be surprising to you is 2011 will be worse.

The article says 5 million people are currently two months behind on their mortgage payment. It could get more ugly real quick. The thing is people will lose their will to fight it. Why bother holding on when your house is upside down anyways? Not that we are for that mind set, but it is tough to get past it if you are in that situation and struggling.

8 Keys to the Mortgage Market in 2011

2011-01-12T09:33:00.004-07:00

Click on the title to link.

We find it quite funny how the government seems to think that more and more regulation is the answer (see Keys #1 and #2). This has proven so far to help some, yet make doing and getting mortgages extremely difficult. At times it has prevented folks from getting a mortgage that would be very helpful to them, or has punished folks by making it more expensive for the customer or us. It's not right. Does the government honestly think that "mortgage disclosure reform" is the answer? Are you kidding me? Yeah, that was the reason for the real estate/mortage mess. If they honestly think that then we are in big trouble.

Numbers 3-8 are so "pie in the sky" right now that it is almost laughable. Basically they are saying everything needs to get back to what it was and then it will be alright. Wow, that really insightful "keys" you all came up with. Not going to happen, folks.

There is one primary key to the mortgage market this year and that is the Federal Reserve (Key #8). Their "Quantitative Easing" plan is so full of holes that it could not hold water if it wanted to. Frankly, we are relatively convinced that the Reserve does not know what exactly to do because they are running out of options. Flooding the economy with Billions of dollars is not going to lower rates. It is, in fact, going to raise rates (as it has quickly done). Then when inflation kicks in what is going to happen? Rates will go higher, faster. Why the Feds do not seem to get this is utterly beyond us. But it's simple economics.

How To Bid On A Foreclosure

2011-01-03T10:32:00.001-07:00

Click on the title to link. If you are thinking about buying a house, and may be interested in looking at a foreclosure, then you need to check this article out. It may not be the easiest process, but you can certainly get some good deals going this route.

Happy New Year!

2010-12-28T10:10:00.002-07:00

To all of you, we would like to wish you a very Happy New Year. We trust you all had a great Christmas. We are so thankful for our clients and partners who continue to refer those they care about to us.
The PCM Team

Top 10 Scams of 2010

2010-12-28T10:08:00.001-07:00

Click on the title to link. Just thought this was an interesting article for all of us to be aware of because many of them I would imagine are alive and well.

More See Walking Away As An Option

2010-12-20T09:36:00.002-07:00

Click on the title to link. Although we are not suprised at all to read this, it is a very interesting article about the tough decision many are faced with. We found two things to be most profound:

1. "$300 billion worth of adjustable rate mortgages are expected to reset upward over the next 12 to 15 months, adding on average $1,000 to monthly mortgage payments on homes that already are worth 30 percent to 50 percent less than their original sale price."

2. "Roughly 23.2 percent of all single-family homeowners who have a mortgage are underwater on their property, according to third-quarter data from Zillow."

Staggering numbers when you think about it. As we have said many times before, we are far from being out of the woods on all of this.

Home Values Down $9 Trillion Since 2006

2010-12-10T10:26:00.003-07:00

Click on the title to link. This is an interesting article. Sucks to read about it, frankly, but you should also keep in mind that home values were inflated due to the bubble. The people this really stinks for are those who bought their homes at the peak of the bubble, or those who refinanced at that same time.

Hidden Victims of the Mortgage Mess

2010-11-23T09:36:00.003-07:00

Click on the title to link. I am not sure how "hidden" these folks are, but the article is referencing those who are underwater on their house and are not in foreclosure. This certainly is a huge problem since it may take years for those homes to get back to what they were (depending on many things).

The Wild Ride of 2011

2010-11-19T11:43:00.001-07:00

Click on the title to link. This is a very interesting article by Jim Jubak. He has quickly changed his tune about 2011, aligning more with our thoughts that it is not looking good for the near future. Check it out.

Mortgages...a "Simple" Flow Chart

2010-11-18T16:26:00.003-07:00

Wow! You've got to look at this chart (click on the heading above to link to the article). Dan Edstrom, of DTC Systems, who performs securitization audits, spent a year putting together a diagram that traces the path of his own mortgage.

Prepare to be shocked, and outraged, and confused. You will be amazed at how convoluted the path is. Boy have we come a long ways from borrowing on a handshake.

How To Get A Perfect Credit Score

2010-11-16T08:09:00.003-07:00

Click on the title to link. Not sure how realistic it is to get a "perfect" credit score, but you can implement some of these things and get close. It really is not rocket science:

1. You have to get credit to have credit (the chicken and the egg?).
2. Don't pay late.
3. Keep your balances under 30% of the max limit.
4. Don't close your old accounts.
5. Give it time.

Now go ahead and read the article...

Why Your First Home Shouldn't Be Your Dream Home

2010-11-16T08:04:00.002-07:00

Click on the title to link. I am not sure that many people would really ever say they are buying their "dream" home when they are buying their first home. But this is an interesting article with some good points. The funniest thing about this to me...the picture. How many first homes look like that?

Where Are Rates Going

2010-11-15T09:15:00.004-07:00

The million dollar question - maybe it's the billion dollar question - a million just doesn't mean as much any more. The truth, as it always has been, is that we don't know where rates are going. However, what we do know is that when inflation goes up, so do long term interest rates, which includes mortgage rates. We also know that the Federal Reserve Board (with the infamous Mr. Bernanke at the helm), has recently begun a new round of bond buying (known as QE2), and that the intention here (at least in part) is to spur inflation. Based on what we're reading, it sure doesn't seem anything needs to be done to "spur" inflation.

Much of the recent financial news is beginning to report various inflationary concerns; not the least of which is in relation to commodities, which results in higher prices to consumers on food and other every day types of items. We've read that turkeys will cost 30% more this year; and that cotton futures are up 90% this year. Looks like jeans and t-shirts will be going up soon.

What does all this mean? There is real inflation here, and the bond markets (including mortgage backed securities) reacted with a huge sell off last week. This sell off means mortgage rates increased by about .25% last week, and this week is off to a similar start. One expert we read said, "Unless there is a huge negative economic decline, the end has come for low rates". Of course, while the indicators are pointing a certain direction, even the experts can be wrong - and in fact they are wrong often.

The good news: mortgage rates are still at ridiculously low levels. Yes, they did get down to the 4.25% range, and if you were able to take advantage of those rates, fantastic. But even with the recent uptick, they are still in the 4.5% range. These rates are still fantastic, so if you've been considering exploring your options for purchasing or refinancing, it appears now may be the time.

As always, we welcome your thoughts and questions.

Is Mortgage Shopping Safer?

2010-11-12T13:13:00.002-07:00

Click on the title to link. This article says that mortgage shopping is getting "safer". Is that true? Well, maybe a little bit if you gauge "safe" as less junk fees. But for those of us who have always operated in an honest, trustworthy manner it is no different than before. Regulations are through the roof, which has actually made things worse for you, the borrower. But it has shored up scrupulous fees.

But keep this in mind, government regulation is not going to dictate that people serve you well. It completely ignores the fact that there are still a lot of people in this business who could not serve people to save their life. So is having a miserable process less likely now? No, because there are still people in this industry who do not care about you. They are in it to make a living.

Bottom line...be very careful to think that increased regulations means you are going to have a smooth experience. What ensures that? Working with people you know and trust, or at least working with a company that was highly recommend by those you know and trust. The only way for any company, including us, to ensure a smooth loan is with internal, defined systems. Anything short of that will only ensure either failure or mediocrity. That is not acceptable (at least not here).

Has The Fed Done It, Again?

2010-11-09T09:19:00.003-07:00

Click on the title to link. The short answer is, yes. This is an article I found today by Jim Jubak which adds to the foder of what we posted yesterday. The Fed's, in our opinion, have no clue what they are doing and have made a huge mistake in flooding US dollars into the economy (unless, of course, you want to devalue the dollar). This is a huge issue that is coming down the pipe, people. You need to educate yourself on this so you are prepared. We do not mean to sound gloom and doom, but this is a major concern.

Will The Fed Self Destruct?

2010-11-08T14:19:00.003-07:00

Click on the title to link. The fact that the Feds are flooding the economy with $600 billion to "revive" the economy will, in our opinion, only kill the economy. Why? Because you cannot devalue the dollar like the Feds are going to do with their plan. Inflation will go through the roof, rates will go up, the cost of goods will go up, people will have to spend more to get less, etc. This is a stupid move by the Feds.

And just to be clear, it does not matter whether you are a Rep or Dem. You better wake up to reality regardless because this is a bad move by the Feds that may show temporary, early signs that are positive. But the storm is coming (unfortunately).

The Jobs Picture Continues to Worsen

2010-11-08T10:42:00.003-07:00

By Robert McHugh, Ph.D.
November 6th, 2010

Let’s look at some of the Fundamentals of the economy which eventually leak into the market at some future equilibrium price in the future:
The Bureau of Labor Statistics, a division of the Labor Department, announced Friday, November 5th the results of their employment survey and statistics for the month of October 2010. Using just their numbers, they reported that non-farm payrolls rose 151,000 in October. However, they goosed this figure by 61,000 make believe, guestimated, assumed, non-counted fictitious jobs they presume were created by new businesses they think started up, net of businesses that closed down. That brings the non-farm payroll figure down to 90,000. But, of that 90,000 reported new jobs, 35,000 were in temporary service jobs. So, if we take that figure out, we are down to 55,000 new jobs created in October. However, the U.S. needs to create 150,000 new jobs every month just to accommodate population growth, which means that once again, job creation fell short by 95,000 in October. In other words, the employment picture got worse.

The BLS reported that the unemployment rate, by their convoluted calculations, remained at 9.6 percent, 14.8 million good folks out of work. However, they purposely chose to not count 2.6 million unemployed folks who wanted work, looked for full time work within the past 12 months, but did not look during the most recent 4 weeks for one reason or another. For 1.2 million of those 2.6 million, the reason was they were so discouraged, they figured, “why bother.” The BLS 9.6 percent figure would have risen to 11.28 percent by including those 2.6 million, no arguing the truth there. That is really the number that should be reported. But worse, the BLS does not count the underemployment rate. There were 9.2 million folks who wanted to work full time, but were denied that opportunity involuntarily, by having their full time hours cut back, or by settling for a part-time job while they continue their search for full time work. If we add those good folks to the unemployment ranks, we find that the underemployment rate was 17.2 percent. That means more than one out of every six employable people were either unemployed or stuck in a part-time job when they wanted full time work.

Then there is the immeasurable group of folks who have full-time work, but in a job that is below their skill level, and at a pay rate below what they had in previous full-time work. Add to them those who have full time work on salary (do not qualify for hourly overtime pay), but work more hours now than they did before to cover the responsibilities of fellow workers who got laid off, but also did not get a salary increase. Not sure how many of these good folks are out there, burning out, giving up quality of life just to keep their jobs. Then there are those who have full time work, but have not been given raises because their employers suggested they be happy at their current wage or else they will be replaced by someone else willing to work the same job for less. Call this entire paragraph the “quality of work” work decline, which I do not believe anyone has a handle on. But if you talk with friends and neighbors, empirically there are a ton of folks in this category, a category whose numbers have increased dramatically since the Bear Market started.

All this adds up to an employment picture that is grim, and getting worse. The impact of course is on consumer spending, which accounts for 70 percent of GDP. The only solution out of this mess is a massive income tax rebate and tax cut, placing the QE2 Dollars the Fed is printing, into the hands of households, and not Wall Street where QE2 is going. If households got the money, they would lower their debts, and increase their spending. That increase in spending would boost small business revenues. Small businesses (who are responsible for 70 percent of hiring) would then start hiring to handle the increase in sales. Small businesses would then spend more, boosting sales of large corporations. Large corporations would then add jobs and go to Wall Street for capital. Wall Street’s profits would grow from investment banking operations, rather than the Trading accounts QE2 are designed to goose. At every level, government tax revenues would get a piece of the action. Voila, prosperity for all!

If I were king, this is what I would do. I would cancel QE2, as that will have no positive impact on the economy or employment. I would then do QE3, a one time only event. It would be designed to choke start a dead economy and deteriorating employment picture that will eventually lead to a Great Depression.

I would have the U.S. Treasury issue at least $5.0 trillion of new Treasury note securities, short to intermediate term, up to 5 years in maturity. This term is chosen because this economic “trickle up” plan would reap returns to the Treasury in the form of massive tax revenues by year five without the necessity to raise income tax rates, rather while actually lowering income tax rates, when this debt could be retired. I would then sell these $5.0 trillion of securities in the open market, with the Federal Reserve as buyer of last resort, providing demand if necessary. Even if the Fed buys all of these securities, it is okay because the Treasury will be retiring them within five years anyway from the increase in tax revenues it will accrue from a growing and prospering economy.

Then I would take that $5.0 trillion and rebate 1 to 2 years of income taxes to households (not businesses), with a minimum rebate of $25,000 since many folks were unemployed and do not have income over the past two years. Small businesses would end up getting the rebate because there are many who file subchapter S returns that flow to household tax returns. I would then require that half the rebate be used to pay down debt. This would result in stronger financial balance sheets for households and lending institutions. Banks getting their loans repaid would see their non-performing assets decline, and see their loan portfolios decline. That would improve their capital ratios and their liquidity. In conjunction with improved household financial positions, this would put banks in the mood to be accommodative in lending practices, which would help the economy. This would strengthen the FDIC’s reserve position as fewer banks would fail.

Households would then take the rest of the money, and feel more confident about the future, and likely spend on items they have been holding back on due to necessary austerity. This would boost small business sales, which would result in job creation to accommodate the increase in sales. This would increase small business’ demand for the products and services of large corporations. Large corporations would then turn to Wall Street firms for capital and loans, boosting Wall Street’s profits, not from Trading schemes courtesy of the Fed, but from growth in aggregate demand, the economy. Local, State and Federal government entities would get a piece of the action at each level, increasing their tax revenues, allowing them to retire debt and increase infrastructure spending which would create more jobs.

This results is prosperity for all, a growing pie, growing aggregate demand. With the increase in tax revenues, the Treasury then retires the $5.0 trillion of newly issued debt that kick-started this economic recovery plan. The Fed sells its securities back to the Treasury, and the U.S. Dollar retains its value.

This will not happen, because both political parties seem intent on solving economic problems with a top-down approach, where they give trillions of Dollars printed out of thin air to Wall Street who then take the money and earn increased Trading Account profits with mega-purchases and profit-taking sales of stocks and other financial instruments, like some wealthy drunk at the casinos. A great deal of this money will get destroyed, disintegrate at a coming stock market plunge, and the wealthy Wall Street Trading machine will end up leaving the gambling table broke once again, with all the money from the Fed gone for good, leaving a trail of a devalued Dollar, rising unemployment, falling home prices, failing banks and businesses, bankrupt families – the next Great Depression. That will lead the Central Planner’s to the bright idea where sovereign nations merge into a new Union of Western States, including North America and Europe, in an attempt at one world government they falsely hope will fix the mess they created. Unfortunately this is probably the path we are on.

OK, We're Not Perfect...

2010-10-28T14:09:00.004-06:00

We had an "incident" yesterday that made us think we should blog about it.

We really have worked hard to build a business based on trust and honesty. We never have claimed perfection, but always strive for excellence. That does not mean mistakes are not made, but it is a reflection of how we are going to handle those mistakes. We are never going to make excuses for mistakes we make. We are going to admit those errors and aggressively pursue any way possible to make it right.

Yesterday, upon reviewing the HUD for a closing the next day, we realized that we forgot to change something on the loan for the borrower that we had said we would. It was no minor oversight on our part. So what do you do at that point? Well, you don't start making excuses. You admit what you did to the client and tell them what you are doing to rectify the problem. Then you follow through and get it done immediately.

This is what we did on this file (and any others we have messed up on). True client focused service is often most reflected in how you handle adversity. We strive for nothing short of excellence in this and all areas.

Here is an email we received from the lender regarding the handling of this particular issue:

Thank you! There are so many people out there who (in the same situation) look for (invent) any reason to place the blame on the lender, get upset, and demand that we rush it. This really makes a bad day for everyone involved and inevitably causes delays in underwriting and closing.

Therefore, I wanted to let you all know how impressed I was with how Kim and Brian handled the situation given the fact that the goof was on your company’s end. She admitted it upfront and Brian was there to send everything to me as soon as I needed it. I know there was some panicking but regardless, you all were very polite which gave me time do what I needed to do to . You have no idea how much I appreciate that so I wanted to take a minute to say thanks as well.

We absolutely hate it when we screw up. But when it happens, and it will happen, we are going to do all we can to make people so happy with us that they just want to tell others what we did to fix the issue. We trust this is the case with this borrower.

NY Fed Suing B of A

2010-10-19T16:01:00.003-06:00

Click on the title to link. Remember how we said just this morning that the whole foreclosure fiasco that came out the last few days was only the beginning? And that just because B of A and GMAC went back to "foreclosures as usual" did not mean the dominoes where done falling? Well, here's the next domino...

More on the Forclosure Mess

2010-10-19T12:16:00.002-06:00

Click on the title to link. This is a great article by Jim Jubak about the foreclosure fiasco with banks right now. Like we said before, it is going to be really interesting to see what comes of this. Just because B of A and GMAC pulled their "holds" on foreclosures today does not mean it is business as usual. This article does a good job of looking into the back end to show you the real problem at hand. Bank may be in big trouble. Of course, they are cash rich right now because they have been storing away the "stimulus" money they received instead of actually lending it out.

Foreclosures Peaking

2010-10-14T10:16:00.002-06:00

Click on the title to link. This last quarter there were more home ceased by banks through foreclosure than any other quarter. It is going to slow a bit with banks backing off due to pressure, but it will still stay fairly steady.

Buying Fixer-Uppers

2010-10-13T10:48:00.002-06:00

Click on the article to link. This is a good article about the FHA 203(k) loan, which is really the primary loan available for people wanting to buy a property and roll into the loan the fix up costs. You should know that they are a pain in the butt, bottom line (no pun intended). However, it is there for you if you want to roll the costs into the loan. More work? Yes. Other options? None.

Banks Halting Foreclosures, States Investigating

2010-10-13T10:29:00.002-06:00

Click on the title to link. This is really going to be interesting to see what comes of this. Banks are under tremendous scrutiny for their foreclosure practices, and states are now launching their own investigations. We are not sure exactly what may come out of this; it could be nothing. But these are interesting developments. Will foreclosures stop altogether? Doubt it, but...

Recession or Recovery?

2010-10-13T10:21:00.003-06:00

Click on the title to link. This is an interesting article as it talks about how this "recovery" sure feels and looks like a recession. Don't kid yourself into believing that we are in "recovery" mode. We are smack-dab in the middle of a recession still. Do you feel recovered? This is one of the first articles we can remember seeing that actually admits to this.

Adding more reason to believe this...the Fed Reserve is desperate to get the economy going. So much so that they are talking about printing 6-7 trillion dollars worth of money to flood the economy with cash in the hopes that it will stimulate people to spend. The problem with that stupid idea? Inflation will sky rocket, rates will go with it, and the value of the dollar will plummet. They are in a mess and don't know what to do.

Could Rates Drop to 0%?

2010-10-12T09:55:00.003-06:00

Click on the title to link. The short answer is, "No way." The ramifications of such a reality would be severe and detrimental to our economy. Cars do offer 0% financing, but that is comparing apples and oranges. This article does a decent job of explaining it. Check it out and give us your feedback and/or questions.

How to Raise Your Credit Score

2010-10-11T09:10:00.002-06:00

Click on the title to link. Credit scores are vitally important to what rate you get and program you can do. They are far more important, frankly, than they used to be. This is, therefore, an important and helpful resource for you.

The thing to remember about credit, however, is it takes time (generally) to get your score up. There is no magic to it. There are times when we can get it done faster through various means, but it is very dependant on the situation. We would be happy to answer any questions you may have.

More Barriers to Mortgages

2010-10-08T09:46:00.003-06:00

Click on the title to link. I know we just posted something about this yesterday, but it still holds true the things they are mentioning in this article. At the same time, don't think it is impossible to get a mortgage. Many, many people are still obtaining them. It's just not exactly how it used to be, so be prepared to be patient.

6 New Hurdles To Getting A Mortgage

2010-10-06T09:41:00.002-06:00

Click on the title to link. We have talked before about how much more difficult it can be to get a mortgage now. This is another article on the subject that you can read through. It is a good summary of many of the new hurdles that folks now face in trying to get a mortgage. We battle these things constantly.

10 First Time Buyer

2010-10-06T09:36:00.002-06:00

Click on the title to link. This is a good article about first time homebuyer mistakes that can really affect your search for a house. Read through it and share any questions you may have with us.

Fight Back Against Tax Lightning

2010-10-01T07:28:00.002-06:00

Click on the title to link. This is an article about how property taxes have been increasing as home values are decreasing. But folks are fighting back, and often winning. The key here is you have to protest the increase within a certain period of receiving your tax bill. There is alot of info about this on our blog, so do a search and we can help answer any questions you may have.

Thinking of Renting Out Your Home?

2010-09-27T10:48:00.002-06:00

Click on the title to link. This is a good article to read if you are considering renting your home because it will not sell, or for vary other reasons. It should not be viewed as discouraging, "just the facts, Mam."

Will Listing Your Home Disqualify You From A Refi

2010-09-24T10:57:00.002-06:00

Click on the title link. The short answer to the title of this post is, "Maybe." Many lenders will now accept a refinance where the home has been on the market. It must be off the market for at least one day. But there are two very important things about this:

1. The home absolutely must be off the market. People often execute a listing cancellation with their Realtor, but the Realtor drags their feet with actually taking it out of MLS. The lender will absolutely check this, and if it is listed in MLS then your loan is toast.

2. You have to convince the lender that you really are staying in the home with a good letter of explanation. It is up to the lender whether they believe you, or like your reasoning. They can deny the loan because your letter is not convincing enough. You are at their mercy on this.

Bottom line is it is doable, but not guaranteed by any stretch of the imagination. You have to jump through the "lender hoops", but it is often worth it.

Need To Refi, But Your House Is Underwater?

2010-09-24T10:52:00.002-06:00

Click on the title to link. This is an article about two government options if your house is underwater. The thing about these two options is they are not as easy to get as they may make them sound. There has been numerous articles about how these two programs have not really accomplised what they were intended to. But they are, none the less, options.

If you are currently on an FHA or VA loan then you can also refi onto another VA or FHA loan at a lower rate without having to get an appraisal. This would eliminate any "underwater" issues.

The Recession Drags On...

2010-09-22T13:14:00.003-06:00

Click on the title to link to this article. An interesting article about how in several states the recession is either clearly still in force, or was much later than the advertised mid 2009 that came out recently. Interestingly enough New Mexico is listed as one of those states.

The Recession Is Officially Over! Sure It is.

2010-09-20T10:25:00.002-06:00

Click on the title to link. This article is proof that numbers do sometimes lie. On paper this recession may be "over", but that is the most ridiculous thing considering so many other factors (unemployment, poverty level, people are not spending, etc.). This "recession" or whatever you want to call it is not over, despite what the numbers may say.

In an MSN poll, 87% of people said they do not think the recession is over, and still are pessimistic about the economy. So what do you think?

Should You Buy New?

2010-09-20T10:19:00.002-06:00

Click on the title to link to this article. Relating Albuquerque to this article, I would say it is not as clear cut as they may present it. There are certainly benefits to buying a new house, just like there are benefits to buying a new car. But there are just as many benefits to buying used. Especially in Albuquerque, do you want to be on the west or east side? If you buy new you will, most likely, be way on the west side. Values are much slower to increase on new construction on the west side, and you get the lovely landscaping of dirt!

All that said, I am not pushing for one to buy used and not new. Just remember there are always two sides to every story.

Albuquerque in list of top 10 Markets Most Likely to Appreciate

2010-09-17T12:48:00.003-06:00

This is of course a speculative article, but heck, we'll cheer the good news about our city.

Albuquerque has always been an area that seems to avoid the ridiculous appreciation and therefore the huge drops in value. However, even Albuquerque has had areas that have seen large uncharacteristic drops in value. The good news is that the research done by Local Market Monitor, as referenced in the linked article, indicates our city may be at the forefront of future appreciation. We're not talking large percentages here, but any positive growth in value would be encouraging.

Is This The Time To Get A 15 Year Mortgage?

2010-09-09T09:43:00.002-06:00

Click on the title to link. This is a relatively good article on the fact that now may be the time to get a 15 year mortgage. With 15 year rates in the mid to high 3% range, it is truly and increadible time to consider it. However, it still generally makes for a heafty increase in your payment. You really need to weigh the options. Are rates awesome? Yes. But you cannot jump in with both feet because you may sink fast. We can help you analyze the possible benefits for you.

Albuquerque Foreclosures Surge

2010-08-30T10:22:00.003-06:00

Not sure if you saw it or not, but there was an interesting article in the Albuquerque Journal on Sunday about how foreclosures in the metro area have doubled from where they were at this time last year. Again, the sound our broken record, this should be expected by anybody reading this blog regularly. It could get worse because 2011 is supposed to be the peak of foreclosures nationally. Here are some interesting points:

* There were 4,970 foreclosures in Albuquerque in 2009.
* There have been 4,574 foreclosures in Albuquerque between Jan and June of 2010.
* There were 2,688 in all of 2008.
* The unemployment rate in Albuquerque has doubled to 9.2% since 2008 (22,000 jobs).
* Albuquerque is one of 154 metros nationwide to see foreclosures increase this year.
* One out of every 80 households is in foreclosure in Albuquerque.

Mark Boitano , who has been instrumental in fighting against tax lightning, said Albuquerque has seen the "perfect storm" leading to our current economic problems. We totally agree; it is more than just foreclosures. Many of those foreclosures are a result of the other contributing factors. They are home depreciation, a stupid appraisal law that has brought in values lower than reality (at times), unrealistic lending guidelines, a dysfunctional federal hom loan modification system (to say the least), and tax lightning.

All of this then contributes to folks hunkering down, which depresses the real estate market even more, which drepresses the economy even more, and so on. It's a vicious cycle. And all signs point to the fact that it is going to loom for the foreseeable future. As Boitano said in the article, "We're not even at half-time yet."

Amazing 3D Art

2010-08-27T13:39:00.001-06:00

Click on the title to link. This is just for fun. Check out this amazing street art.

Do Banks Have The Right To Foreclose?

2010-08-25T14:49:00.001-06:00

Click on the title to link. This will be an interesting story to follow. Not sure anything will come of it, but watch and see...

Dream of Home Ownership Fading?

2010-08-25T10:38:00.002-06:00

Click on the title to link. Here is a sad article about how many folks are thinking they will never be able to own a house. We think most of this is because people do not understand their options. When you here nothing but bad news about real estate in the news then it is going to ware on you. However, many of those who think it is unreachable just do not understand the process and what they can do.

If you are in that boat, or know somebody who is, then let us know because we can sit down and at least show you options. You have to window shop before you can buy. The first step to that is to see what stores are even open for your business. Make sense? We are here for you and anybody you may know.

Appraisal Under Scrutiny

2010-08-25T10:32:00.002-06:00

Click on the title to link. Our poor intentioned, poor planning government has so screwed up the appraisal process for loans it should be a case study in college of what not to do (any questions about where we stand on this issue?). They revamped the appraisal process to "protect the consumer" from over inflated appraisals. Instead it has:

1. Driven up the costs for appraisal because competition is over.
2. Caused appraisals to come in under value because the appraisers are so scared of the lenders over analyzing their work and not giving them move orders.
3. Made it so that you, the consumer, can no longer get at least a "feel" for what your house may appraise before dropping 500 bones.

The current appraisal system is the poster child for anti-government interference.

An Example of What We Deal With Everyday

2010-08-25T10:09:00.004-06:00

You saw that we recently posted a video about how difficult it can be to get a mortgage. We thought this would be a funny, yet great example of the stupidity of what we have to put up with right now with lenders.

We have a couple purchasing a house. They both are Attorneys with the DA's office. She just (like in the last week) had a baby and is on full-pay maternity leave for 90 days. We have of course proven all of this and it was accepted by the lender. We received a few prior to closing conditions that were easy to clear. Then there was one that made us laugh, and grind our teeth all at the same time. It read, "Provide verification Borrower has had her baby and all is well, i.e. she is in good health and expected to return to work as scheduled." Are you kidding me!! How exactly would you like the proof? Our Processor, Brian, called and asked them if sending them some Placenta cookies would suffice.

For fun, this is what we sent them. Hopefully they accept it. :-D

Don't Get "Rate Greedy"

2010-08-25T09:50:00.003-06:00

There is one constant any time rates are really low, people always think they can/will get better. And they vary well may, and sometimes do. But you really have to be careful to not get greedy about it. Rates are at 50 year lows, that is pretty awesome! So you really have to question what makes one think they are going to get much lower, if at all. And is it worth the risk? People often do not realize a couple of things.

1. A large move in rates (.25% down, for example) will generally have a small effect on you payment. Does it help? Of course. And having a large loan amount also makes a bigger difference. But it is a risk to wait for that kind of movement. A .25% drop in rates is not something that happens daily (generally).

2. Rates move up much faster than they move down. It has also really bugged us that lenders are much slower to better rates than they are to worsen them. And when they get worse they can get worse much quicker than they get better. So although rates may take some time to improve .25%, they can worsen .25% in the blink of an eye. So, again, you cost vs. benefit has to really be thought through.

Bottom line, you can certainly wait things out and hope rates keep going down. And you may very well get a better rate. But know the risks going into it, and don't get greedy. 50 year low rates don't come around very often; roughly every 50 years. :-D

New Home Sales Slide Further

2010-08-25T09:48:00.002-06:00

Click on the title to link. The housing market news just keeps gettin' worse. Now new home sales hit an all time low. More signs of our fledgling economy.

Home Sales Sink

2010-08-24T09:49:00.001-06:00

Click on the title to link. Just a little something to keep you in the loop. This is no surprise to any of you reading this blog. It is going to get worse before it gets better, especially with the spending policies of the current administration. You cannot spend like this without serious consequence (many of which are yet to come).

Mortgage Reality Check

2010-08-23T11:25:00.002-06:00

Some of you may have seen this on ABC News. It is a good video about the difficulties of getting a mortgage now-a-days with all the new regulations, and stingy banks. Now is, without a doubt, the most frustrating time we have seen in 9 years to obtain a mortgage. We hae always told our clients that lenders do not lend in logic, they use guidelines that often make no logical sense. The problem now is many of they have transitioned into the illogical. Not only do they use strict guidelines they are now venturing outside of the guidelines and asking for stupid things (and we mean really stupid sometimes). And often, unfortunately, it is due to laws that our terrible Congress has passed that are intended to make it "safer and easier" on you the consumer. Instead it has done the exact opposite (typical).

All of this said, you have to be careful not to let this video (and our statements) prevent you from pursuing a mortgage. There may never be another time when the perfect storm hits like it has right now. What is the perfect storm? Increadibly low rates and a dismal sellers market. You can get more house for the dollar than ever before. So from a purchase stand point it has never been better.

The same applies to refinancing. Yes, getting a mortgage can be (will be) a pain in the butt. But (no pun intended) rates are so low that you just cannot pass them up. We have seen our fair share of stupidity by lenders and law makers. However, we are here to help you navigate through the rough waters. This is why it is important you work with somebody who has your best interest at heart. You can work with a bank, but you have no buffer to help you understand why they are needing what they need. And you have nobody there to walk you through it. We often explain to people up front what issues may arise because we have seen it so much. Surprises come, no doubt. But if we can anticipate most of the garbage thrown at us all then it makes for a much smoother loan. That's our role for you.

Another Market Crash?

2010-08-23T08:48:00.001-06:00

Click on the title to link. This is an easy to read article on some signs that indicate the possibility of another market crash. Our two cents...it's definetely coming.

More Closing Cost Info (this time good)

2010-08-18T17:17:00.003-06:00

Click on the title to link. Although closing costs are up 37% from last year, New Mexico ranks 33 out of 50 for loan closing costs. That is a good thing. Not too many other states are lower than the Land of Enchantment.

"Sorry, No We Can't Lower Your Rate"

2010-08-18T11:45:00.002-06:00

Huh? Here's another example of over-regulation by a government. We recently had a client who was purchasing a house. A couple of days before closing rates really dropped to where we could have gotten them a lower rate and, consequently, a lower payment. However, we could not do it because we now have a regulation where we cannot change the rate without there being a 3 day period before you can close on the loan; this includes lowering the rate!! Since this was a purchase, we could not do anything because the sellers would not budge on the closing date. So our client lost out on a lower rate and payment.

Make you mad? It should. It's not the first time this has happened for us. Now write your congress folk and tell them to fix it.

Fees Are Up...Thank Congress

2010-08-18T11:34:00.003-06:00

Just watched a video talking about how the average amount of closing costs this year is up 37% from what it was last year! And this after the Feds came out with the new and "improved" Good Faith Estimate, which was suppose to stop lenders from adding on last second fees. Well, that has happened, no doubt. But for us honest lenders out there who never did something so stupid in the first place, it just complicated things for everyone. Now we use the old Good Faith to explain the new one. If that's not proof that people making laws that have no clue what they are doing then I don't know what is.

Why are costs higher? Simple...more regulation = more overhead to be compliant = more costs = higher fees to the consumer. It's simple math really; it's only hard to understand for those residing in Washington D.C. Just wait 'till the new health care goes into effect, especially for these large companies.

Don't like it? Write your congress folks and let them know what you think of it.

Low Rates Are Dangerous

2010-08-13T14:28:00.003-06:00

Click on the title to link. This is a very good article about how one guy has finally come out about the unsustainability of the current low rates. We have been saying that inflation will kick in and rates will go up. We certainly thought it would be sooner, but we cannot sustain the current landscape; no way. Take the time to read this because this will happen.

Refinancing Options If Your Under Water

2010-08-13T09:31:00.002-06:00

Click on the title to link. We do not do either of these loans; you would have to go through your current mortgage holder. But they are resources for you if it is a last option, and you want to view these as last resorts.

Top 10 Housing Markets of the Future

2010-08-11T13:50:00.002-06:00

This is a slideshow of the top 10 housing markets of the future, as predicted by Bloomberg Businessweek. New Mexico is listed as #8.

The Depressed Real Estate Market

2010-08-11T13:42:00.002-06:00

Click on the title to link. This is a good article about how the real estate market is not budging despite the fact that rates are at 50 years low. This is not surprising since we saw that the last round of first time buyer incentives really did not do a whole lot to stimulate the market. The fact that rates this low is not moving the market is not a good sign. It shows that people are sitting back and waiting to see what happens, mainly because of our current Administrations fiscal policies (in our opinion). We have been saying that reports of recovery have been grossly overstated; this is a great example of why.

Want to Sell? Slash The Price

2010-08-06T08:34:00.003-06:00

Click on the title to link. This is one of those subjects that nobody wants to hear, but you need to if you are in this boat. Selling your house can be a very emotional experience. Forgive us for this statement...get over it!

You have heard "it is what it is"? Well, it is what it is, and what it is right now is a really horrible market to sell. You will not get out of your house what you think it is worth right now. Buyers are all about feeling like they got a screaming deal. They are not looking for fair, they smell blood and they are going in for the kill. Sound too harsh? Trust us, we see it all the time.

You have two choices when you list your house:
1. List it for what feels good and you think it is worth, and then let it sit there for a log time.
2. List it for what the market will bare, and actually sell it.

Reality is a bitter pill to swallow. Just take your medicine and remember that you are probably going to be on the flip side next when you go buy a house. And this is what we remind people of; it works both ways. So, hopefully, your net out is the same as it would have been. You get less for your house, but you pay less for the next. It does not always work like that (of course), but that is the hope.

August Home Maintenance Tips

2010-08-06T08:32:00.003-06:00

Click on the title to link to a nice little article about things to do around the house (especially outside) for the month of August. We are all about practical also!

Cost of FHA loan to increase in early September

2010-08-05T16:59:00.003-06:00

For anyone who is considering a new FHA loan, which includes taking advantage of the historically low rates through an FHA Streamline refinance (see past posts on this subject), you would be wise to get started now.

Congress just passed H.B. 5981 and it's expected to be signed by the President shortly. This bill gives the FHA the power to hike monthly premiums (mortgage insurance premiums) it charges to consumers. Currently the monthly premium is .55%/year, which translates to about $46 for every $100,000 financed. It is expected that HUD will raise the premiums initially to .9%, which will add about $30/month for the same $100,000 financed. The bill also give HUD the authority to raise the monthly premium to a factor of 1.55%. Given the authority, you can be sure it's coming.

There is a positive element to the bill. Presently, in addition to the monthly premiums, HUD charges the borrower 2.25% of the loan amount as an Up Front Mortgage Insurance Premium charge on every FHA loan - this Up Front premium will most likely be reduced to 1%.
The net effect of these changes will be an increase in the cost of an FHA loan. The planned effective date of these changes is September 7th, so again, if you're someone who's been considering refinancing and FHA loan, do it NOW. As always, we'd be happy to answer any questions you have.

Mortgage Brokers Regulations

2010-08-05T11:55:00.003-06:00

We have mentioned this before, but it has been a while. Plus the linked article is a good summary of what is required of us now. Click on the title to link to it.

In the past, pretty much anybody could become a broker overnight. It really was ridiculously easy. That has all changed, and it is a fairly intense process now that includes getting finger printed, tested and registered. It is something long over due, and we are all for it.

Is There A Housing Shortgage Looming?

2010-08-05T08:12:00.003-06:00

Click on the title to link. This is an interesting article about how there may actually be a housing shortage in the "nearer" future for some markets. What's interesting is they put New Mexico in that category because they say we are one of the more stable and "recovered" markets. Although we do not fully agree or see that (see yesterday's posts), New Mexico is a very desirable state for folks to live in and we could foresee a future shortgage due to the fact that new construction is so very low right now. But we are not close to that being the case, in our opinion. Still an interesting article, however, that is not far fetched.

6 More Hurdles for Home Financing

2010-08-04T10:50:00.002-06:00

Click on the title to link. We changed the title of our post just slightly from the article to reflect the fact that the hurdles listed in the article are really six more hurdles. They are the major ones indeed, but there are so many that you could practically write a short book about it.

The bottom line? If you have not got a mortgage in a couple of years then you need to know that this is not "business as usual" anymore. In fact, it is so ridiculous sometimes that it can be maddening. We deal with it everyday and it is insanity what some of these lenders deem necessary. About the only thing left to analyze is urine samples. And don't put it past our current government to move in that direction (kidding, mostly).

Regardless, rates are insanely low. We just keep waiting for them to go up, and they keep going down. Obtaining a mortgage before could be unpleasant because of the dope you were working with. Now it can down right lead you to craziness UNLESS you are working with someone you trust. Now, more than ever, it is critical that you work with someone who is referred to you, or can really show you how they work. If they cannot do that then run. We are here to help walk you through all of this, hand in hand. That is the only way you will have a smooth and understandable process.

Signs of Life?

2010-08-03T12:49:00.005-06:00

The front page of the Albuquerque Journal's Business Outlook yesterday read, "Signs of Life". It was regarding the recent report by Moody's ranking Albuquerque among the top 10 healthiest commercial markets in the nation.

The opening sentence reads, "The tide may have turned for the local commercial real estate market." Well you will have to excuse us if, once again, we seem to be dousing this fire with "reality water". Is the commercial market better in Albuquerque? It probably is. However, the signficant moves in our market have come from industrial, limited-service hotel and full-service hotel. We would not exactly say those are indications that "the tide may have turned." But why not? Because the article also says, "The office market is where commercial real estate in Albuquerque clearly reveals substantialdistress from the economic recession." This is, in our humble opinion, are far bigger indicator of what is really going on with the commercial market here.

They all work together, don't get us wrong. But when you have such a huge portion of the commercial market as office space that is going to have a more substantial effect than some of the other areas. It's good news that those other areas are increasing. But it is equally bad news that the office market is struggling so greatly. As the article also says, "...market health is a relative commodity in commerical real estate..." It just seems a bit irresponsible to say "the tide may have turned" when clearly many, many people are still nose deep in it. We know several people who would not only say the market has not turned, but it is worse. As the article said itself, market health is a relative commodity.

Next Up For Fannie & Freddie?

2010-08-03T09:55:00.006-06:00

Click on the title to link. This is a great article discussing what may happen next with Fannie and Freddie. Ever since these institutions were officially taken over by the Feds they have been nothing short of a disaster. Once again, Congress may be ready to start mingling, and if they are not careful it may have much more serious implications than our already struggling economy.

Click here for a video on the same topic.

Higher Inflation

2010-07-30T09:36:00.003-06:00

Inflation is going to be going up. It is inevitable because the government has to do something to try and pay for all the garbage legislation they are passing. When you combine higher inflation with higher taxes you get poor people with no jobs. This is a major issue staring us in the face. Here is a quote by Federal Reserve guy, ...

what we're trying to do is encourage output growth and production, and through that channel, get inflation to move higher.

Not good at all, but it's comin'.

Foreclosure Activity Rising

2010-07-29T09:58:00.003-06:00

Click on the title to link. Another article that should not surprise those of you reading this blog regularly. Foreclosures are going to continue to get worse for another year, roughly. Albuquerque is still in a slow recovery stage. The market is still down here and will continue to be so until buyers increase. However, folks are not very interested in buying right now because they are in a holding pattern. The vicious cycle continues.

Cities Still Waiting For Recovery

2010-07-29T09:49:00.003-06:00

Click on the title to link. Here is the article that ties in with the interactive map we just linked to. We find it funny how so many articles have talked about our "recovery", yet here is an article saying the exact opposite. Again, false positives...
And let us tell you first hand, the purchasing of homes right now is still way down. Are people buying homes? Of course, but not many. And the higher end market (homes over the 400K range, roughly) are sitting for at least a full year, if not longer. We see it getting worse (possibly much worse) before it gets better.
So what's our deal, are just "half empty" folks? Not at all. However, you have to objectively look at what is happening in our country right now and face reality. We don't see much good at this time.

Shrinking Home Prices

2010-07-29T09:41:00.002-06:00

Click on the title to link. This is a great interactive map of the country showing you what areas are still in decline (almost all), and what areas are in recovery. The good news...compared to many other areas, Albuquerque and the surrounding area has done fairly well (although it's all relative). The bad news...although this map indicates some areas are in recovery, we still contend they are false positives because we are not coming out of this faltering economy anytime soon. This Administration and Congress are leading us into financial bankruptcy as a country, mark our words. No country, institution, or person can spend like we are; it is not sustainable.

Welcome Back

2010-07-26T13:33:00.015-06:00

We have a lot of fun at our office, and it has quickly become a tradition with some of us to "welcome" someone back from a trip by doing something obnoxious to their office.

Recently I ordered some new business cards for one of our Loan Officers. It has also become a "tradition" in our office that anytime I order business cards I "wait" to catch an error on at least one of the card orders after they are all printed. I was gone last week at a conference and this was my welcome back, using a box of the wrong business cards I had ordered...

And my retaliation...

The Fast Approaching Credit Cliff

2010-07-22T16:49:00.002-06:00

Click on the title to link. This is a huge issue that is coming at us like a freight train, yet nobody is talking about it. One of many reasons we believe the worst of this economic crunch is yet to come...

Reverse Mortgages Are Lookin' Good

2010-07-16T10:03:00.002-06:00

Click on the title to link. This is a great article about how reverse mortgages are becoming more popular now due to the lowering of the fees associated with closing these loans. We are actually getting more heavily involved in reverses. We, for the longest time, had a negative eye towards these loans, like many folks out there. However, you will realize they are great loans for the right people once you really look into them.

If you or anybody you may know has questions about reverse mortgages, also called Home Equity Conversion Mortgages (HECM), then please give us a call or email us.

Buying A House?

2010-07-14T16:45:00.002-06:00

If you or anybody you know may be thinking about buying a house then we wanted to offer you a free resource we give to our clients. It's an informative 82 page book to help you through the buying process. And remember, we are always just an email or phone call away. Click on the title to link to our website, scroll down just a bit, and you will see it on the right side of the page.

Rates Don't Work The Way You May Think

2010-07-08T10:54:00.005-06:00

We often get the following phone call from people in the middle of a loan, "I saw on the news that rates have dropped to 4.57%, and I am locked at 4.75%. So can we drop my rate to that now?" The answer is yes and no, but it just is not what it appears.

1. When we lock someone at an interest rate with a lender we are committing to the lender that we are going to follow through and send them the loan. A few years ago it really was not such a big deal to lock and move the loan. But since the change in the industry hit two years ago, lock fall out (as it is called in the industry) is monitored very closely. If we lock loans with lenders then we are expected to deliver, and they closely monitor this. If our fall out rate is too high then they can make pricing worse for us (which makes rates worse for you) or take away our ability to submit loans to them. When you tell us to lock a loan you are committing to follow through also. So changing lenders is not something done without consequence.

2. If we are locked with a lender we cannot just "reprice" or lower the rate with them. Some lenders do have a feature where we can do this, but rates have to have really gone down for it to work. Anytime we lock we always lock with the lender who has the best rate at the time you tell us to go ahead and lock.

3. Related to #2, since we lock with the best at the time, just because rates have gone down does not mean other lenders rates are now lower. It may be that their rates are now even with the lender we have already locked at. Therefore, you still may have the best available rate.

4. The media is not a good source to get a feel for what rates are doing. In fact, they are a very bad source. Why? Because they are always behind what rates are actually doing at the time (they may be lower or higher than what they are reporting because they are typically a week behind reality). They also just throw out a rate. But what determines the "going rate" that they report? Well, if you take all the rates people are getting for the past week and throw them into a proverbial melting pot, then you will get the going rate. But in that pot you will have rates where people are paying no fees, people paying fees but no points, people paying 1 pt, 2 pts, 3 pts, etc. Throw all that together and you get a "going rate". So a reported rate of "X" tells you absolutely nothing about what people paid to get that rate. Your rate may be higher than the reported rate, but that is most likely because your rate is cheaper than that lower rate. We could absolutely get you that rate, but not with the terms you currently are at.

Does this all make sense? It is a bit deep, but just know that there is only one way to be sure of what rates are really doing...call us. You need to be asking those you trust what they are doing, not paying attention to main stream media. Like everything else in mortgages, you need education and analysis to know what is the best thing for you. That is why we are here; use us.

The 6 Phases of Foreclosure

2010-07-07T11:27:00.002-06:00

Click on the title to link. Hopefully none of you actually need this, but this is a good summary of the foreclosure process.

Our Country's Greatest Threat...Debt

2010-07-06T15:49:00.003-06:00

Click on the title to link. This is a great article on several levels.

1. It explains in simple terms why our country is facing a potential collapse. We absolutely cannot keep up this spending; it will sink us. This article does a good job of explaing that and shows why it is the biggest security threat to our great nation.
2. It furthur goes on to explain how private resource must be part of the solution. What does that mean? Equity in one's home is private resource, and folks need to be ready to utilize that equity when the government comes out saying they cannot afford all their unsustainable public aid policies.

Home Equity Conversion Mortgages (HECM, or Reverse Mortgages) are going to become a tremendous key to accomplishing this "unlocking" of one's equity. It cannot be viewed as a last resort but a necessary component to our coming financial mess. Stand by for more info as we continue to discuss HECMs.

The Psycho(logy) (of) Pricing Your Home

2010-07-02T11:45:00.002-06:00

Click on the title to link. Probably the single biggest thing we hear and see as to why homes are not selling (besides the fact that buyers are buying) is that people are psycho about what they want to sell their home for. We know, we know, you have put blah, blah, blah into the house, and it has to be worth X. Well, that just aint how it works.

This is a good article regarding the psychology behind pricing your home. Read through it and let us know what you think. What questions does it raise in your mind? Remember this, reality is a bitter pill to swallow. You cannot price your home on what you wish it was worth, what you need for it, or what you would like to get out of it (unless of course you want it to sit there for sale). If you want to sell your home then it will get what the market will bare, and what comps dictate it is worth. Right now, it's just may make you psycho.

7 Fixes to Boost Your Home's Value

2010-07-02T11:35:00.002-06:00

Click on the title to link. These are some easy, relatively speaking, things you could do that could help improve the value of your home. If nothing else, they certainly will not hurt the value of your home. If you are selling your home right now they can, literally, be what makes or breaks it for a buyer.

Deflation Warning

2010-07-01T15:17:00.002-06:00

This is not an advisory, but a warning...deflation is on its way. In all seriousness, we cannot predict the future (obviously). However, you should know this is not something new coming from this blog. We are in no way doom and gloom, but we are realists. We just cannot sustain our current spending policy; it is literally impossible. Something has to give, and it is going to give way to deflation, in our humble opinion.

Click on the title to link to a short, easy to read article regarding this. Just be educated and aware because it will certainly effect the real estate market even worse.

Rates At A 50 Year Low

2010-07-01T14:30:00.003-06:00

Hard to believe, but rates are really low right now. If you have not refinanced and what help evaluating if you should consider it or not then give us a call. It still may not be right for you. However, you need someone to honestly analyze whether it is good for you or not.

The thing about all this is the housing market is really not great right now, and we do not see it getting any better anytime soon (despite what you may hear). So now is the time to move on a refi if you have any thoughts about doing it because it is a tough time to sell your house. Get your payment down and start saving that difference.

We're Committed to Being Brokers

2010-06-30T16:52:00.004-06:00

Over the last 12 months or more, many mortgage broker loan officers have made the decision to go work for a bank. We think they've made a hasty decision.

There are several reasons why there's been this exodus of brokers:
1. For one, mortgage brokers have to survive a fairly rigorous process to become licensed - BUT, if a loan officer goes to work for a bank, they are not required to get licensed. This is just wrong on so many levels; but I digress;

2. Our government continues to favor the banks when it comes to new regulations. This can certainly cause a mortgage broker to feel a bit queasy as we continue to absorb what feels like the majority of the blame for the mortgage mess - at least if the regulatory environment is used as an indicator. It's disconcerting at best when one compares the changes being made to the brokerage industry that do not apply to the banking industry. I wonder who has the more powerful lobby (please forgive my sarcasm)? So, it's almost understandable why a loan officer working for a broker would say: "I've had enough!".

One can at least understand these reasons, but for us, the thought of shutting down the brokerage business that many of you have helped us build is unfathomable. Being a mortgage broker with our own company allows us to have better control over the process used to serve our clients. It allows us significantly more options in terms of products and terms we can offer. It gives us control over who we hire as part of the team that serves you - and we have a great team. And so many other benefits.

So we are steadfast in our commitment to maintaining our brokerage as long as the government doesn't regulate us closed. Every member of our team has been licensed for a while - well in advance of the deadline, and we look forward to the opportunity to serve our clients for a long time to come.

Please Call Us Before......

2010-06-29T12:47:00.004-06:00

We sometimes hear from clients who've considered refinancing with the lender currently servicing their loan. Let us just say - please call us first.

We just spoke to an existing client who had been contacted by their current lender/servicer about the possibility of refinancing. After a review of their situation, they were told they're not eligible for a refinance at this time. However, that's not true at all. They are eligible for an FHA Streamline (we referred to these in our last post). This program, combined with the offer we're making, will save them at least $200 per month, AND, we will pay ALL of their closing costs.

Not sure why the existing lender/servicer didn't mention this to them. Maybe they can't offer it, maybe they're not aware of it, who knows? Either way, we're grateful for the opportunity to serve them again and will vastly improve their current situation because of our steadfast commitment to ensuring we are on top of the latest opportunities of our industry.

You Must Call Us If You Have An FHA Loan

2010-06-19T07:45:00.007-06:00

Do you currently have an FHA OR VA loan? If so then you need to be sure and take 2 minutes to call us. You may qualify for an FHA/VA program that will not require any appraisal at all, will cost you absolutely nothing to do ($0 in closing costs), and lower your monthly payment. Give us a call at 830-9685 (ask for Kim Kissane) so we can quickly analyze if you qualify. You can also email Kim at Kim@MyPremierAdvisors.com.

Social Media To Sell Your Home

2010-06-11T16:26:00.002-06:00

Click on the title to link. This is a good article about using social media sites like Facebook to sell your house. This is the wave of the future and we very much encourage to embrace this direction. We use these type of things in our business and would be happy to help you out.