THE BEST WAY TO ROB A BANK IS TO OWN IT! says Author William K. Black

From Bill Moyers Journal Page:

The financial industry brought the economy to it's knees, but how did they get away with it? With the nation wondering how to hold the bankers accountable, Bill Moyers sits down with William K. Black, the former senior regulator who cracked down on banks during the savings and loan crisis of the 1980's. In this 30 minute interview, Black offers his analysis of what went wrong and his critique of the bailout.

http://www.pbs.org/moyers/journal/04032009/watch.html

I look forward to your comments and any questions.

Your friend,

Amy

How Serious Is The Foreclosure Issue?

Foreclosure on your home is an extremely serious issue. Unfortunately, many people do not realize the extent or the severity of this financial nightmare until it is too late. Foreclosure on your home will result in the loss of your rights as the homeowner and also presents many legal challenges.

The foreclosure process on the home begins when a homeowner has neglected to make their required monthly mortgage payments. A homeowner , in most cases, will be delinquent on their mortgage payment anywhere from 90 to 120 days. In today's economic climate, many homeowners are finding it difficult to make their mortgage payment and as a result are facing foreclosure.

Once the homeowner moves beyond 90 or 120 days without curing the delinquency, the mortgage lender will initiate action to legally foreclose on the home. The homeowner will be served with a foreclosure complaint by the court. Once you have been served with the foreclosure complaint your next steps are vital in trying to save your home from foreclosure.

Service of the complaint is often the point at which many homeowners choose to ignore their mortgage lender and the foreclosure action. In most cases, homeowners are unaware that once served with a foreclosure complaint they must respond in order to preserve their legal rights and to enable them to take steps to try to save their home from foreclosure or take the steps to sell it.

In most states, the homeowner has a specified period of time by law to respond to the foreclosure complaint of the mortgage lender. It is highly recommended that you seek legal counsel to understand your legal rights as the homeowner and to explore your alternatives in resolving the foreclosure action.

Lenders, even during the foreclosure process, can work with the homeowner to help them save their home. Your lender will require you to submit information to possibly help you modify your mortgage loan. A loan modification may help you to cure your delinquent payments and may even lower your payments or rate over the life of your loan. There are also government programs that you may qualify for if you are experiencing financial hardship and facing foreclosure.

If you are unable to modify your mortgage loan or qualify for assistance then you have other options to help you avoid foreclosure. You may be faced with the fact that you will need to sell your home. In this case a short sale may be an option. Check with a real estate professional who has received advanced education and certification, like the Certified Distressed Property Expert designation, for your options.

Again, it is vital that you seek legal counsel and keep the lines of communication open with your mortgage lender. Although the lender has begun the process of foreclosure they can still work with you to try and find an alternative if one exists.

If you ignore the foreclosure of your property or are ignorant of the law and your rights you will lose your home. It is crucial to understand the serious nature of foreclosure and take action to save your home and your legal rights.

Don't hesitate to call our office for more information, and referrals to the many professionals who can help.

REALTOR MYTHS - PART 1

Ya know, everything in real estate has changed. But the one thing that hasn't seemed to change is all the myths around Realtors; how they work (or do they?), what motivates them, or even more sinister - just what are their motivations, AND just how much dad gum money do they really make?

Just when you think you've found out everything you need to know about the "dirty, little secrets agents don't want you to know" from a bazillion of misinformed and, in all fairness, probably well meaning Web sites, here's what you really need to know.... starting with my favorite - - -Realtors are always late!

Out of my Marine Corps training came the lesson; "To be early is to be on time, to be on time is to be late, to be late is unacceptable!" So you can see how I roll !

Every person, whether a client or not, deserves respect. So there's no excuse for habitual tardiness among professionals. I've even picked a Doctor who sees me in his office - ON TIME! (His Dad was a Marine....do you think that changes things?!?)

Respect is providing what is promised. Anytime, we as professionals don't honor that promise, then we've put our own interests above our clients. Not OK.

Agents who don't practice respect, first by honoring your time, are just simply not professionals. Get rid of them. Believe me, there are plenty of us who treat this business as a profession by first giving you the respect you deserve, as evidenced by the honoring of your time.

So, don't make the assumption that all Realtors can't keep time. The Pro's will !

I'll see ya on the other side!

THINKING OF REMODELING?

If you're like me, it doesn't look like we can escape the projects in our house anymore by moving every couple of years! I'm so disappointed. It sure was a great strategy that worked for over a decade!

But now the smart money is on buying a house for the right reasons; shelter, quiet enjoyment, a place to build family and memories....and after a LONG time - maybe some equity. Wow, how things have changed.

So that LONG time we'll all be spending in our houses, means we need to get better at taking care of them, keeping them updated and making sure they're repaired before things get out of hand.

A good strategy starts with a good Home Inspector. You're probably familiar with the home inspection process, if you've bought a house in the last few years. But did you know it's really important to have your home inspected regularly while you live in it? Ideally you'd have it looked over every year, but for sure have your favorite inspector out at least every 3 -5 years. He'll help identify those things that are starting to cause problems; like moss on the roof, leaking gutters and bushy plants that can easily lead to bigger (read "more expensive") projects if left untouched.

With the inspectors report in hand, you now have your "honey do" list. And that list most likely will include those projects that are perfect for the DIY'er and those that are , well, NOT!

Great home projects are things like pulling back barkdust from your siding (6" of foundation is what the inspector wants to see). Just that little job will keep the critters from snacking on your siding. Purchase vent wells from your favorite home improvement store to keep that barkdust away from the vents and out from under the house.

How 'bout those gutters. Have you cleaned them? Are they draining into a drain pipe or right down the foundation? It's that gutter water that's helping water run into your crawl space - creating unwanted moisture. Find some splash blocks to draw the water away from the foundation while you're at the store as well.

How about that slight shade of green on the roof? The dreaded beginnings of moss. QUICK - get it while you can. That little bugger will be working it's way under the shingles of your roof as quick as it can!

Furnace filters are another often forgotten home maintenance item that leads to BIG dollar costs if ignored. HVAC technicians tell us the filters should be changed every month....and those that aren't are costing you efficiency and money, as well as wear and tear on that very expensive piece of equipment that goes out at the least opportune times! So change that filter!

Lastly, the bushes. Keep those lovelies 6 - 12" off your siding. Rose bushes, rhododendrons, azaelas and any other "woody" bush provides a nice little bridge for those darling carpenter ants and wood boring beetles we all know and love in the Northwest.

So there it is. The short list that starts with a Home Inspector. Give us a call if you need a referral, and then strap on the carpenters belt!

See you on the other side!

Don't we all wish we had a crystal ball right now. But who's got it? During a recent interview on MSNBC, Robert Schiller of Case-

Schiller said this real estate market is not behaving similar to any past market that we've seen. Great....so now what???

So here's what we know:

We have record low interest rates.....but not forever.

The Feds have stepped up their purchase of Mortgage Backed Securities. In essence, they are the money behind the mortgages being issued. Last week they purchased $14B in MBS, whereas the most recent prior purchases were around $9.5B. But this pot of money will not last much longer.

The Fed now has $113B left of their $1.25T allotted commitment, with the buying program set to wrap up on March 31st. The Fed's purchases have helped home loan rates stay historically low - and although there has been some buzz about an extension of the program, it seems unlikely that will come to fruition.

When the Fed purchases stop, home loan rates will be very susceptible to moving higher - so if you or someone you know is thinking of selling/purchasing or refinancing.....I can't make it any clearer than to say...."Get the Lead Out!" Rumor has it that interest could bounce at least a point to 3 points higher when the Fed's stop providing the mortgage money.

Well so much for Amy's crystal ball. I wish we could see further into the future to know what we're facing....but for now we can only see out about as far as the Spring.

So, don't hesitate to call us if you need help making sense of this, or if you need a referral to a lender. We're here to help with all your real estate needs.

Till next time,

Amy :)

2009 REAL ESTATE REVIEW

Happy New Year Friends. Were you as glad as I was when 2009 was over? Like all good Americans, though, we always take an opportunity in the New Year to look forward with renewed hope and expectation. And that's the position I'm taking this year.

But before we look forward, lets take a quick review of real estate in the Willamette Valley for 2009.

One bit of good news is that sales basically stabilized from 2008 to 2009. There were 5954 sales in 2008 and 5869 in 2009. That represents a drop of only -1.43%....really very small, all things considered.

Inventory also seems to be stabilizing, although it had a larger % change at -8.64%. There were 6760 listings in 2008 and 6176 in 2009....a slight float down.

But our average sales price has continued to move in the wrong direction. If you were selling in 2008, the average homes was sold at $240,780. In 2009 that price moved to $214,219. OUCH! Them there's some real hurtin' dollars at an approximate overall drop of 10%!

That's very reflective of what happens, though, when there's a First Time Homebuyer Tax Credit. Hey, guess what? The First Time Homebuyers came out and bought! So that may be more reflective of a market that has 50% of the sales attributed to those buyers.

Hardest hit for price drops were Keizer (12%), Northeast Salem (10%), Southeast Salem (12%), and South Salem (10%).

On the upside....Interest is phenomenal. Whether you're buying or refinancing, there couldn't be a better time, as interest rates hover around the 5% mark (+/-). And it is expected to stay low at least for the better part of 2010.

First Time Homebuyers got a little bonus time toward qualifying for the $8000 First Time Homebuyer Tax Credit. But they must have their homes under contract by April 30, 2010 and closed by June 30, 2010.

During the first program, we saw a lot of Buyers procrastinating until October (with a deadline of 11/30/2009). Encourage your friends and family - who want to take advantage of this program NOT to wait. Those buyers who did, ended up competing for homes -and probably paying a higher price than if they'd have come in earlier.

Move-up Buyers also got a little $6500 bonus. Main critieria is that you have lived in your primary residence for 5 years and are moving up. What a deal!

As always, please call us if you need a referral to a Mortgage Professional.

Well that's it.....2009 in review. Thank Heaven.

As I look back, I'm reminded that what's important, bottom-line, is our family, our friends, our health, and knowing that Annie was right....."The Sun Will Come Out Tomorrow!"

See you soon!

It's A NEW YEAR in Real Estate!

Happy New Year! It’s our hope at the McLeod Group that you had a wonderful Christmas and New Year’s holiday with your family and friends.

The McLeod Group is looking forward to a great 2010. The “Experts” tell us the recession ended in the Fall of 2009…..and that is great news. As a leading indicator, we’re looking forward to what that actually means in the real estate market.

Right now there are several positive signs.

First, we have the benefit of the First Time Homebuyer Tax Credit. The credit has been extended to homes put under contract as of April 30, 2010. As we reviewed our statistics for December, we noticed the greatest activity is still in the under $225k categories.

Second, interest is amazingly low. I know for some of you, a 5ish interest rate almost seems normal. But for those of us with a few more years of wear and tear – 5ish is LOW! We can give credit to the Fed’s for helping out by buying Mortgage Backed Securities. We’re expecting to see those rates last into the summer.

Now for a few challenges……

The job market is still dicey. Here in Salem the concern is over the effects of Measures 66 and 67 – whichever way the vote goes.

We’re also keeping an eye on the “shadow inventory” of distressed properties held by the banks. Distressed properties are those homes that are behind in payments at least two months, but on whom the banks have not yet filed a foreclosure notice. Word on the street is that the number is about 15 MILLION nationwide…..and that the banks may begin releasing them to the market in the early summer. That could have a dramatic effect on home values this year.

So what does this all mean for you and I?

Most of us have lost any memory of past real estate markets. But looking back can help us put this market back into some perspective.

We’ve entered a time that forces us to see our houses first as a home. They are no longer the ATM machine we were used to. So finding value in the benefits of homeownership will come from things other than a continuous cash flow – like privacy, quiet enjoyment and building memories with our family.

We’ve also entered a time when our homes will once again appreciate at more normal percentages; 3 – 4% is a more likely reality….once we hit bottom.

We are seeing an increase in lenders expecting sellers to provide a home that is pest free, dry rot free and safe. Selling “As Is” has no meaning to a lender. Pragmatically, if we want their money, we have to dance to their tune.

Lastly, change has become the norm in the real estate market. Nearly weekly there are new requirements, new advisories, new rules. Keeping an open mind and a willingness to be flexible will make the navigation of this real estate market that much less stressful.

Please stay tuned for additional posts as our team makes an effort to keep you up on the new changes in the real estate market.

If you have any questions, don’t hesitate to call or email us. We’re here for any real estate question you may have.

Wishing you and yours a very Happy New Year!