This Dad needs a handbook!
The other day I am driving in the car with my 3 lovely children and we are heading down to the beach. It was warm, the sun was shining, waves were up and the wind was calm. I had already slathered them up in sunscreen and we were ready to spend an easy 4 hours plus down at our favorite spot, Lost Winds. On the way there River 1.8 yrs. old (the youngest) kept putting his foot on his sister Elise 10 yrs. old (the oldest) and it was annoying her beyond reason. She starts by telling him to stop and in 2.1 jig-a-watts she is yelling at the baby. He of course being a Hart keeps doing it and then proceeds to put the other foot on Reef 5 yrs. old (Middle) and then he starts yelling at the baby. The decibels become unbearable and I yell at them to stop yelling, brilliant. We continue down the road for another couple of minutes all yelling at someone to stop yelling and in the midst of all the arguing Reef spots a Red Volkswagen Beetle with a rag top. He yells even louder as if that was even possible, “Punch Buggy Red.” Then Elise yells, Punch Buggy Red with Black Top.” This evokes a debate of who gets the punch buggy credit. Elise tells Reef his does not count because he did not specify the black top. He tells her that is not in the rules and screams that is my punch buggy. They dispute this non-sense for another 35 seconds or so and then immediately go back to yelling at the baby for placing his foot on them. Guess what happened next? Yep, I start yelling at the kids to stop yelling in the car. I know I am not the brightest at times but, there has got to be a better way for handling you children and their petty arguments.
Step one is a new car that is quite a bit larger to separate the kids. Step 2 clearly is to publish a rule book for Punch Buggy Etiquette. Step 3, well I don’t have a step 3 yet. It is a work in progress.
I am currently taking suggestions and contemplating medication. Okay, I am not really thinking about medication, at least not yet. . .
Wow! Step 2 has already been taken care of.
http://www.beetlemania.org.uk/pnchbugy.html
6 months later. . .
Well, it is 6 months later and my stress levels have come down considerably and we won several awards. Chippy has become Team Hart’s Go To Gal and with her help we have already reached half of our goal with this month putting us ahead of target. I can’t stress the level of pride she brings me with her daily work ethic and her hunger for more. When she is not being her Chippy Chihuahua self, all she talks about is building the business and finding more clients to help and I, love it. Another fine thing she has brought to the team is continuous stellar testimonials from our clients. Every client, since she has come on the team, goes out of their way to complete comment cards about her excellent level of service and professionalism. Our managing broker Ramona Maney tells Chippy she loves her after every conversation like your Grandmother would say if you were oceans apart. So, to my beautiful wife, I love you and keep up the good work.
What’s Going Down:
We will be launching our new website in about 60 days at www.hartcoastal.com and the site will focus on Our Signature Concierge Service, the local San Clemente Community and the current market conditions. Some basic highlights are the community blog, tutorials on how navigate current market conditions and our feature properties for sale. It will help guide first time home buyers to finding the perfect home in South Orange County to the savviest of real estate investors to their next investment. The site will serve as a point of reference on the ever changing market conditions and highlight upcoming local events. We look forward to helping you soon.
Current Market Conditions:
Currently, if you haven’t read the news, the market is dipping again which we saw coming over a year ago. Why? The banks have yet to foreclose on the homes that have not paid in over 24 months and the inventory is just stacking up. I could go into depth but, I believe “So You Think You Can Dance” is finally over and I want to go spend some time with my Chippy. Good night and expect more blogs in the near future when I share one families Triumph from, The Great Recession. Surf’s up and I will see you in the water.
What Level Of Stress Are You Okay With?
Late Friday night Chippy (my adorable wife) and I were sitting in the living room enjoying a little time without the kids when we stumbled on the topic of stress. When I say stumble I mean we crashed into the topic like a car into a block wall. In between our “how cute are our kids” anecdotes, we were trying to watch a movie. The movie was Eat, Pray, Love; there is a scene where an Italian guy talks about how Americans don’t know how to enjoy life anymore. He says “the most desired weekend for an American is sitting around in their pajamas and watching TV”. The point he made was that our weeks are so filled with stress and chasing the so-called American Dream that when the weekend comes there is no energy to enjoy real life. As we sat there thinking about this fictional Italian’s commentary on Americans, it became unequivocally clear that he was talking about us and even worse, he was right. Most Americans work so hard just to maintain a certain lifestyle or at least to appear to have a certain lifestyle that we have forgotten to actually live life with a passion. Instead, we have learned to accept a life burdened by unhealthy stress levels. Which leads me to ask both myself and all of you out there – what level of stress are you willing to endure to either support your current lifestyle or pursue a better one?
That question, if you actually take the time to give it thought, is really hard to answer. The question got me thinking immediately. I thought about myself, my friends and family members and tried to think what kinds of stress everyone seems to be okay with. Personally, in our family we are passionate about living near the ocean and about being with our kids as much as possible. To live near the beach is very costly and to maintain this location creates stress. Next, Chippy is a stay at home Mom that works very hard so our kids are not raised in a daycare facility and this adds to the stress as well. Recently, she reentered the work force, helping me with my Real Estate and building her own clientele, all while juggling the same demands at home, which adds even more stress. After about an hour of discussing Stress the movie was over and we had decided something needed to change. Our stress had reached a level that defeated the very purpose of working so hard to begin with – we wanted to enjoy being together and living by the ocean. Yet, the driving pressures of supporting that lifestyle had killed it. When was last time we walked along the beach, as a family? Much too long ago. So how do you find the perfect balance? There were so many questions that I needed to answer before beginning my quest for balance. I thought I should put it out there for others to respond and see what level of stress you are comfortable operating with and how you achieve balance.
So, let’s say the stress level is on a scale of 1-10, 1 representing very little stress and 10 being an over whelming amount of stress. Now that we have defined the levels, place a number next to each question or category and let’s see which provides the most stress. If you come up with a question or category I didn’t list then respond with it, too.
1) Owing money whether it is credit cards, car loans, student loans and or other personal debts.
2) Paying, having or getting a mortgage.
3) Does your health stress you out?
4) Does the need to be rich, wealthy or the appearance of success stress you out?
5) Does your job, occupation or career bring you lots of stress?
6) Does your marriage, family or intimate relationships cause you stress?
7) Do your friends cause you stress?
8) Does money cause you stress?
9) Does religion place more stress in your life?
10) Does politics cause you stress?
11) Does the media cause you stress or fear?
12) Does your appearance cause you stress?
13) Does your diet cause you stress?
The Double Dip Is Here
The stress is killing me!
Hello Everyone,
The double dip is now upon us and the market is getting slower. I have noticed a lot of investors are returning to the market and they are more aggressive than ever. What does this tell me? It is time to buy! Those who haven’t really experienced the recession or have been insulated, now is a great time to think about upgrading. I am often asked, if the market is still dropping why I would want to sell right now? A few factors come into place; one the loss you may take from selling your current property will not be as significant as the future gain you stand to benefit from. Second, if you can move to a larger, more upgraded or a better location and end up with the same payment then that makes a lot of financial sense. Third, interest rates are expected to go up and if you can get in while prices are low and get a low payment then think where you will be financially in 10 years.
Another big question I come across is, when do I expect the market to bounce back? I feel it will be quite some time before we see a rebound. With unemployment so high and California in such a financial mess I think it will stay stagnant for at least a few years. Standard sales can still be strong for the fact there are just not that many to pick from and there are still buyers in the market that need a place to live and don’t have time to wait for short sales or even REOs (bank owned properties). The only problems at the moment with Standard Sales are the home owners and agents that haven’t come to terms with the decline. Amazingly enough there are a lot of agents still hanging on to the 2005-2006 over inflated prices. Another common theme I hear is; it used to be worth. . . My response to that is, NOT ANYMORE.
2011 should also see a lot more short sales since that is really the only way the banks are helping distressed homeowners. We should see faster approvals in most cases. If we don’t then I predict the banks made a financial decision to foreclose instead of doing a short sale. All in all, it should be a very interesting year. If you know anyone that needs some help or a little advice refer them over and if they become a client you will receive a finder’s fee of up to $1,000. Have a great day!
Banks Don’t Like Loan Modifications!
Happy New Years Everyone! Attached you will find a quick article that can help you understand why banks are not approving loan mods. I have spent countless hours on hold and speaking with bank negotiators and at the end of the day the bank says something to the effect of, they are not approved, the investor will not do a modification or we don’t feel this in the best interest of the bank. All of these are responses to mortgages that DO qualify for the HAMPS program (Home Affordable Modification Program).
The program is not mandatory and the banks are not required to help anyone and in most cases the short sale is your best option. If you know anyone that has any questions, feel free to have them contact me as I have been fortunate enough to help hundreds of home owners in the last few years.
Keep your heads up and help a neighbor.
http://www.bankrate.com/financing/mortgages/why-lenders-nix-loan-mods/?ec_id=m1078089
Why most loan mods don’t get approved!
Happy New Years Everyone! Attached you will find an quick article that can help you understand why banks are not approving loan mods. I have spent countless hours on hold and speaking with bank negotiators and at the end of the day the bank says something to the effect of, they are not approved, the investor will not do a mod or we don’t feel this in the best interest of the bank. All of these are repsonses that from mortgages that DO qualify for the HAMPS program (Home Affordable Modification Program).
The program is not mandatory and the banks are not required to help anyone. In most cases the short sale is your best option. if you know anyone that has any questions feel free to have them contact me as I have been fortunate enough to help hundreds of home owners in the last few years.
Keep you heads up and help a neighbor.
http://www.bankrate.com/financing/mortgages/why-lenders-nix-loan-mods/?ec_id=m1078089
Have we hit bottom yet?
Unfortunately, we have yet to see the bottom of the local Real Estate Market. On the other hand now is a great time to jump in and start looking for a great deal. Mortgage rates are at historic lows and with housing more affordable it is a great time to buy. I have attached a few links that will help give you a better understanding of where we are and where we are heading. Remember, knowing is half the battle. As you can read in the second link things are far from better.
http://mortgage.ocregister.com/2010/11/29/new-high-for-o-c-s-distressed-housing-your-city/40304/
http://money.cnn.com/2010/11/29/real_estate/robo_signing_impact/index.htm?source=cnn_bin&hpt=Sbin
Questions that we the people would like answered.
Over the last 24 months I have had plenty of dealings with Bank of America and most of them left me believing everyone that works for them is a crook. Of course, I know that is not the truth but, an argument could be made. Because I help a lot of homeowner’s short sale their underwater homes I pay close attention to what is going on in the banking industry. What I have found has raised the same questions that are in the attached article. Most of these questions should raise enough eyebrows to make you want to change banks if you bank with BofA.
If I had my druthers I would convince all BofA patrons to move their money to a local bank so that Bank of America gets the point of, we the people will no longer accept being ripped off. For some reason people are okay with it. Why? I believe that most people are just too lazy to switch. Our country needs a banking overhaul. Do I know how to do it? Probably not but, there are plenty of people that could change this terrible industry before it is too late.
If you have any questions relating to a distressed property feel free to give me a call anytime.
http://www.huffingtonpost.com/2010/11/08/what-in-the-world-is-goin_n_780310.html
The OC Housing Market. What’s Really Going On?
Hello again,
In the last few months the housing market has started on a down trend due to the amount of foreclosures looming in the shadows and the lack of a tax credit for buyers. What does that mean to you? Well, if you are a buyer it means happiness and if you are a seller it could be dreadful. I have placed a few tips for buyers and sellers that could help your situation.
Buyers:
- Now is the time to start making offers and lots of them. Why? Plenty of people need to sell and some will be very motivated to just get out.
- The market is moving down and this puts you in a strong position to make low ball offers.
- If you find your dream home and it is a short sale be very patient because if you are patient you will most likely be living in your dream home very soon.
- Don’t be afraid to make ridiculously low offers and if you have an agent that is not comfortable doing so. . . Dump them and move on.
- Be realistic when you are in a counter position. Such as, if in a short sale and the bank counters with a higher price be prepared to pay a little more to get the home. You will be happy you did in the long run.
- Make sure you are getting a 30 year fixed mortgage. Also, don’t be afraid to buy down the rate. You will be happy you did in 10-20 years.
Sellers:
- My best advice is price to sell. Be the best deal in the area so you are not stuck holding the bag. Typically 1-2% below market will get the home sold. Although, the condition of the home does matter.
- It is very important to know that typically the first offer is usually the best offer. So, if you have an offer, do what you can to make it work.
- Really listen to your agent. If they suggest a listing price and you object, pay close attention to how the agent handles it. If they say okay lets list at your requested price be prepared to sign up with a weak agent. If they push hard for THEIR suggested price then you have the agent that will get the job done.
- Use an agent that is internet savvy. Agents that still believe in print media are outdated and probably don’t sell too many homes.
I have attached an article that supports my theory on where housing is headed. Remember if you have any questions feel free to contact me anytime. I have been very fortunate to help quite a few homeowners short sale their home and get back on the road to financial recovery. I am a distressed property expert and can help you with the best remedy to your situation.
http://www.huffingtonpost.com/2010/10/26/foreclosures-pushing-home_n_774399.html
Read what the banks don’t want you to know.
Recently you may have seen that many banks are halting foreclosures. I am not sure if you know what this means but, more extend and pretend. Many distressed homeowners have been living mortgage free for over 18 months. Can you imagine not paying mortgage for 18 months? How much money could you save? Well, that is the question most people could say, a lot. Well in fact, the people not paying their mortgage are not saving a dime. I speak with people every day that have not paid mortgage in over a year and most of them have zero savings but, they still have cable TV, Luxury Car Payments and eat out at least 4 days a week. Wow! A majority of homeowners that are facing foreclosure think they are entitled to keep their home even though they have not paid the mortgage in over a year. This simply amazes me. Now that the banks have halted foreclosures here is what will happen.
Distressed homeowners will get to stay in the home longer without paying mortgage, home values will remain higher than they should be and the problem is now prolonged preventing a recovery in the near future. I know what you are thinking. You are saying, duh but, how can it recover by foreclosing? Easy! If the banks go ahead and foreclose or approve short sales quicker the earlier all the distressed homes come to market. When all the homes come to market the prices will drop again creating good deals for buyers. Buyers that can qualify by today’s standards are stronger than buyers in our last cycle and foreclosures will drop dramatically. So, if you put a strong buyer in a home they will most likely stay in said home and start building families, businesses and this will restart the economy from the ground up. What makes this country so great is the middle class and it will take the middle class to rebuild our greatness.
The two most popular questions I hear from distressed homeowners are; Why would the bank chose to lose so much money foreclosing on me? Why wouldn’t they just modify my loan? Here are a few reasons.
1. They are not losing a dime! That’s right, not one penny. They are making a profit. (I will explain in one moment)
2. They need to terminate the mortgage contract you previously signed.
3. You just can’t afford the home.
Now, in the first reason I said they are making a profit and most people might be a little perplexed on how. So let me explain. Basically, there are 4 major banks, Chase, Bank of America, Wells Fargo and One West Bank. Here is a breakdown of what happened.
Chase bought all of Washington Mutual for a little less than ten cents on the dollar meaning if you owed $100,000 dollars on your mortgage (and most people owe a lot more than that) Chase bought that debt for $10,000. Let’s also say the home is only worth $50,000 in today’s current market. So, if you don’t pay and they eventually foreclose and it cost them another $20,000 to foreclose on that home which is really high now they have spent $30,000 dollars to take the home put it back on the market for $50,000 with an REO listing agent (Real Estate Agent that sells Bank Owned Properties) and it sells for $50,000 they just made $20,000. These numbers are very low and there are millions of foreclosures. You do the math.
Wells Fargo bought Wachovia who had previously bought World Savings all of which held large sums of non-performing mortgages at an extreme discount and now they are profiting on everything that forecloses or short sales. One West Bank bought Indy Mac at a extreme discount and is profiting on all foreclosures and short sales. Last and most definitely not least, the mother of all, Bank of America. BofA bought Countrywide at a discount and they are making a profit as well. These are only the big ones. These scenarios apply to over a 100 different small banks as well.
The worst part is that they can’t even foreclose properly. They all often lead a homeowner down the road of hope by offering what is called a Trial Modification where you pay a fixed payment for a supposed 3 months awaiting a permanent modification and after 6-14 months they tell them even though you qualify for a loan modification and you fulfilled the Trial Mod as expected you are still denied. Then the next day a person knocks on their door and says, when will you be out of the house? I bought your home today at the courthouse and I am the new owner.
At the very least the banks could do the foreclosure process properly and let the people make arrangements to move their families to a more affordable place so they don’t get kicked out by the Sheriff which only cost us tax payer dollars or the bank could advise the homeowner to Short Sale.
So, I say to the banks. . . Get on with it already and tear the band-aid off. We need to move on.
If you would like to avoid foreclosure, keep your dignity and avoid a foreclosure on your credit then maybe a Short Sale is the best option for you. I specialize in helping people short sale and have had the privilege of helping many families get back on track to a good financial future. So, feel free to give me a call and I can show you some options to regain your financial life back. Stay positive and keep working.
