Pop-Pop's Birthday and 70 degree weather

Enough with my pessimism already I am tired of Bloggin about the Market. Do you blame me? Today is about 70 degree weather, spring, family memories, and good people! Friday was Pop-Pop's Birthday! He turned 95! Pop is a loving man that is a bit of a grandpa figure to me. He and his whole family have always treated me like - well - family. Since the grass is always greener on the other side I can admit that there were times growing up that I too wished to be a part of his family. Don't get me wrong, I love and cherish my blood family deeply. However, Nana and Pop-Pop are and will always be a part of my life. The odd thing is that although I am not "family"... I really am. Not through marriage but through love and a sense of community that still exists. At least I know it existed this afternoon on the corner of 10th and Logan in downtown Noblesville at a small restaurant named Eddies Corner Cafe. It was there that I once again realized that small town Indiana still exists, along with it's values, family, love, and community. I love "Pop-Pop" as we all call him. I love him like family - well ... he really is! Happy 95th Birthday! On a side note - my Grandma Rose turned 104 on April 15th. What an amazing story that would make some day!

National City Bank - The No Closings Bank of choice

Can you believe this email I got from National City Bank?!?!

"National City Mortgage is writing the check for this home purchase. We must follow FHA guidelines or you will not have an FHA loan or any loan for that matter.
It is widely stated that purchasing a home is one of the most stressful things a person can go thru other than death of a loved one or some catastrophy.
Try working in the business & dealing with these things everyday."

WOW! Now I have found someone who needs to check out the "Customer Service for Dummies" book at the local library. Bottom line here is that the home was supposed to close on the 14th of April. They did not even start reviewing the documentation until April 16th. We have received no expectations and limited communications ever since the start of this nonsense. I think I will start referring to NCB as the No Closings Bank. They are NOT wanting to lend money! That is as obvious as the fact that our Loan Officer needs to find a new job!

IHCDA ZERO interest home loans for forclosed properties

Here is another example on how "Obama Bucks" are reaching our community! Can you believe it? If you buy and live in your first home (in three years) for ten years, and it is a foreclosed property you can get an $8,000 tax credit, a $15,000 gift check from the IHCDA, and another $10,000 zero interest loan from Federal Home Loan Bank of Indianapolis. That's $33,000 dollars!!!

Lt. Governor Becky Skillman and the Indiana Housing and Community Development Authority (IHCDA) is offering up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes. Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA's Market Stabilization Fund. The Federal Home Loan Bank of Indianapolis has committed to supply matching loans of up to $10,000. The money comes from HUD's Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.


Quickly, one of the best benefits is that this loan may NOT HAVE TO BE REPAYED!! There is way too much information about this to put in this blog. However, click here for more information from MIBOR (Metropolitan Board of Realtors). Now, for first time homebuyers lets couple the tax benefits along with this and really make a great deal!

I wanted to get this information out to my clients and blog visitors. I have been asked about this program quite often. Here is a quick link to more information from the State.

Prehistoric Lending - Extinct Careers

We are all too familiar with professions that have faced extinction - one hour photo developers, VHS tape manufacturers, and yes the all mighty United Airlines Mechanic. Most of these jobs went through years of phasing out. This "natural selection" gave a lot of time for most to see the writing on the wall and find other careers.

I have to give it to the Mortgage Broker. I don't know if you realized it or not, however, these folks woke up on one Monday morning in 2008 to find that someone had taken away their "wares". Relate it to a shoe salesman who went to work one day to find that someone had taken away all his shoes. What does he do now? Can you imagine the shock? Many of these salesmen worked for years and decades building up reputable businesses throughout our area only to have been told, "go away" from the same people they faithfully made lots of money for - the lenders.

Well, for those brokers still out there - "The next drink is one me"! Brokers are getting cut out of the lending arena. If you use a broker on a conventional program that requires PMI (you are putting less than 20% down), you may get declined based on the fact that you are working with a broker. Not because you have bad credit, insufficient income, or a lack of documentation , you may get decline merely because you are using a broker instead of a bank. Hmmmmm - something is rotten in the woodpile!

Thinking of buying a new home? Call me, there are a few brokers out there that I simply trust implicitly. They are priceless and the banks, in large part, are not worthy of their knowledge and commitment to their industry. But wait a minute - if they can't sell shoes I guess they will have no other choice but to work at the bank. In my opinion it is a sad story indeed. Don't fret - there are also men and women at banks that I have found equally knowledgeable and trustworthy - most of them came from the prehistoric broker period. Ironically, I feel that most of the blame from the subprime meltdown should be pointed at these same lenders who funded the loans in the first place (different topic different blog).

QUICK QUESTIONS TO ASK YOURSELF:

Do I have a 680 or higher score? If you don't you better think FHA.

Do I have a 620 or higher credit score? If you don't you better think Apartment.

Do you have a debt ratio of 45% or higher? Yes? Well you best renew the lease.

Are you buying your home in a declining market as labeled by Fannie Mae? If you are buying in the Indy Metro Area you are. This means you better butter up your lender and put the shocks on the car; you may have a rough ride ahead of you no matter what your credit is like!

Do you have a Realtor? I typically try to stay away from this personal plug, but, here goes - it is a "maze of mess" out there and you better find some good help!

Special Thanks to Mike Senn for enlightening me on some of these issues today! He's a great lender (yep he works for a Credit Union) and friend.

The Appraiser's gift of Ignorance Part II - KARMA

So, a few weeks ago I had a somewhat good experience with an appraiser (detailed in a previous post "the appraisers gift of ignorance"). Today Karma bit me!! See, the whole issue with appraisers is kind of like Realtors. They all talk a big game but most of them don't walk it. I had two appraisers on different transactions all claiming every delay excuse in the world. I was honestly just waiting on all of them to dry their hair (If you understand the joke). The new appraiser rules are not allowing the banks to pick or really even communicate with the actual appraiser. We all should understand why that is a necessity considering the Housing "Hubba Bubba". Now the banks have to call an independent appraisal house (I am calling them the pimps). They call they pick a name out of a hat and send the "chosen one" to the home you are going to buy or sell in order to appraise it. On both occasions the banks ordered the appraisals at least 3 weeks before they were needed. On both occasions neither delivered the complete appraisals in time- siting extreme peril and heartache in their lives as the cause for the delay ( most likely they were just on a boat somewhere on spring break). Since the banks cannot talk to the "chosen ones" I am certain that the information they require in their appraisals will not be complete because proper expectations have not been set. I hate telling a family they cannot move into their new home. The "chosen ones" now have business and for most of them that is a new concept. Either they don't know the area or they have no concern for the impact of their delays. I will "move on" (pun intended) but unfortunately I have four families that not only can't "move on" they cannot - fly back home to start a new chapter, unpack their moving van, install their new flooring, buy their next home, and two of them have to file an extension to file their taxes until the appraisers and lenders get their acts together!

Spring Break Blues

Don't you love the annual Spring Break Blues? Honestly it does not matter if you are blue because you are not going on spring break, or you are blue because after all the euphoria of beaches and roller coasters you realize a ominous 12 hour car ride, heavy credit card catch up, and a cold blast of life's reality waiting on you back at home. For me, well, I did not go on the traditional spring break trip. I did, however, visit my father who is going in for invasive back/neck surgery on the 29th. I am sure his life will change after this and so will mine. Turning 40 (my birthday is in May) means a bit of rear view reflection to times spent and times you wished you could have spent with loved ones here and gone. My Spring Break Blues are two fold - I wish I could afford the trip to the coasters and I wish I could afford to take everyone I love with me too! So, to those coming back from Spring Break here in the next few days - WELCOME HOME (don't open your mailbox for a few weeks that helps the anxiety). And for those, like me, who have a mild case of "wish-I-could-have" illness - don't worry, Mickey will always be there waiting. Here is a link to an Indy Star article today that hit home for me - frugality in the family vacation. (The picture above is of my family last summer at Kings Island in Mason, OH)

Pulte Centex Merge! PLEASE start with a clean slate!

Let face the facts. For most national builders their innate emphasis is on their profitability for the share holders not lifespan or quality of the products. The longevity of the home builder needs to be staked on a quality product. A product that will pass the test of time. Pulte and Centex are building a quality home in the field. However, the design and layout of the neighborhoods are seemingly driven by local density standards and codes - not what will stabilize values and improve the quality of life in an entire community. If the builders were to drive into some of their neighborhoods they built in the 80's and 90's and then compare them to older neighborhoods dating into the 70's and early 80's -they could learn a lot. They could learn a lot about themselves, their greed, and their true commitment to improving the quality of living in the communities they serve. They may even find the answers to some of their declining home sales. The character and structural diversity of a neighborhood goes beyond mulch, entry monuments, and playgrounds. It extends to quality siding, varied home site locations set withing larger building pads, more extensive and long term landscaping, and curved streets. Let's all regroup and focus our housing efforts and investments on Eco-friendly, value driven, and value stabilizing communities that we will all be proud to call home today and in 50 years! Note to the builders - where did your cheese go? It's moved and here it lay!