Reverse Mortgages - Saving Homes

Reverse Mortgage - What is it? Simply put - If you owe 100K on your home that appriases for 200K and you refinance with a "Reverse Mortgage" your loan balance may (most likely will) go up! When you sell your home, later in life, your loan balance will be higher than what it was when you took out the loan.

Why? You don't have to pay any monthly payments! Yep, go ahead, refinance your 100K loan through a "Reverse Mortgage" and you might be able to NEVER PAY MONTHLY PAYMENTS AGAIN. Even if you live to a ripe old age of 120.



What's the "Catch"? You have to be 62 years or older. You have to have significant equity in your home. YOU MUST USE A HECM FHA PRODUCT (in my opinion)! What does that mean? A Home Equity Conversion Mortgage insured through FHA NOT a traditional "Reverse Mortgage".


Talk to a licensed Financial advisor for details. Make sure you mention that this is not the traditional "Reverse Mortgage". The bank will not take your home if you live too long!

Pros: You have a lot of equity in your home...That equity is great but it does not buy bread or support to you or a loved one...You can get some of your equity out of your home and put it to work for you. You can pay any amount of payments per month (including zero)! If your principal and interest exceeds the amount your home sells for when you die. FHA will pay back any losses to the lender.

It is a gamble from the banks perspective - FHA and the bank are in it to make money. They do hope you dont live to be 120. But, we hope you do...In the mean time...No more mortgage payments plus a possible "cash out" option on your equity to do with as you please.

Cons...Your loved ones may not be able to inherit the equity in your home. True..but, if they or you need money now...What does it matter?

Remember - I am not a financial advisor. I just feel as though this may be an attractive benefit and option for many people that are having trouble paying for their mortgages in the tight economy. Royal United Mortgage - Indianapolis Based - has an entire department working on HECM loans. Dont be scared - get information!

Skyrocketing Building Prices - Don't blame U.S.

So, you want to build a home? With 4% interest rates (the lowest in 50 years) and labor available at a discount, it seems to make sense. Most of the cost of housing is in materials (Lumber, copper, concrete, steel, etc.). Houston, there's a problem in the claimed "recovery" from the recession. Just because our economy is lagging it does not mean the world economy is following suit. If you can just imagine what the world thought of our massive growth over the last 75 years. It is time for us to consider looking out our windows at our chief competition as consumers. Right now India, China, and Brazil are exploding with growth. Their economies are booming so much that we are exporting most of our lumber, steel, and copper (to name a few items) to these countries. There is such a demand that we are exhausting natural resources around the globe at a staggering pace and thus driving up prices. Steel has increased 30% since Sept. 2010! Material costs have risen so much that the mere savings you will find in labor cannot offset the skyrocketing cost of the product itself. It makes you wonder how much money Brazil is putting into the infrastructure for the 2016 olympics (i.e. Birds Nest II).

The secret is to buy existing homes at recessed prices and upgrade. Yep, it sounds easy. I know that everyone wants to buy a home and immediately start the construction project, right? Don't be scared off - you can save tens of thousands of dollars or more and live in a home built on a mature site with quality materials. That's my tip (or word for the wise)!

However the Buck Stops Here

The holidays always try my patience. The respect for the almighty dollar really deminishes during that time. True, there are a lot people who seem to think they are getting good deals during this time. The worst thing about the Holiday Season is that 99% of all my transactions always contained one of three words..."However", "But", or the worst of all "BUCKS"!

Why you may ask...does that bother me? Good deals always seem to be tied to some other "thing". You may have to open up a new credit card. You need to buy two of the same item. You may need to come back tomorrow to use the coupon.. My latest experience was from a Disney Representative who said, "You can get a cheap hotel room, however you have to book it 14 days out. But, without an Disney Visa card you wont be able to save the $50 bucks."

That made me think - when someone refers to my money as "BUCKS" does that mean they are belittling my money? No, it may mean that it is not worth much...or...does it mean it is worth a lot? I don't know... I just feel it is disrespectful. It makes me think that there are a bunch of them (bucks) running around somewhere and I need to just lean out the window and grab one. I guess this is silly but why don't we call it a "dollar" or "dollars". I know it's old school, YET, when I am selling a property I respect my client's money - every last cent - enough to call it what it is.

Home sales are littered with contingencies(Buts), counter offers (Howevers), and obvious fiscal negotiations/responsibilities (BUCKS). I've learnedthat the dollar's value is different to each person. I have also learned that you can never go wrong with respect.

Forclosures - Liquid,Risky,and A LOT of work

So, we all want a good deal - right? Especially when it comes to finding your next home. I am blessed with the ability and insight on how to get the great deal. There is good and bad news associated with that though. The good news is that you could save tens of thousands of dollars on your next home. The bad news....these opportunities do not come around often and you have to be skilled to be able to recognize the opportunities (they are not highlighted or flagged).

Sheriff Sales:

So, for pure "blogging" and getting to the point purposes... first of all - you have to be liquid and flush with cash on the date of the sale (if the home costs 100K - you need 100k - not a mortgage or note from Mom). You can/will buy your home from the Sheriff himself. The sales are on Thursdays in Hamilton County and may vary per county (call the sheriff's office and ask). You have to know your target: there may be 20 or more homes for sale at each sheriff sale - only 5 may be in the area you want to buy and three of those five may need too much work for you to stomach.

There is no commission paid to REALTORS. That is good and bad. Good..It saves the public lots of money. Bad...what REALTOR likes to work for free. Honestly, it took me over 15 hours to prep for last weeks sale (drive/walk through by each home, comp each home, research titlework at courthouse). Without the prep how can I honestly be prepared to bid on any property. I walked in with 100K in my pocket and left with 100K in my pocket. Even though I did not buy anything - it was a victory. Better to buy smart than get stuck. So, I would recommend that you hire a real estate professional to work for you on an hourly/commission basis to prep for the sale. Then you are "locked and loaded" to buy. The following link will provide you with previous sale data and upcoming properties that are going on "the block" soon! Click Here for current Sheriff Sale info!

Golden Hill - "There's treasure in thar' hills"

It is not common to be surprised in this industry. The traditional character of North Suburban real estate is large family rooms, 9' ceilings, and basic dollar/square foot. When it comes to housing, it is easy to fall into the trap of comparing yourself to your peers. North central real estate (for the most part) is about the same. Sure, that home has stainless appliances & granite tops; that one has Pergo flooring. A big "WOW" may be a screened in porch or finished basement.

To all of us who have fallin' into the production character that drove the residential construction and urban explosion of the 90's, may I introduce you to Golden Hill. Sure, the residents of Golden Hill would rather I keep this under my hat...but I just can't keep this secret. It is a charismatic community that has a developed life and style (not created lifestyle).

Golden Hill is a neighborhood that does not thrive on "Home Tours". When a home becomes available - it usually sells quickly. Most of the homes here were built in the late 1800's to the early 1900's. They all come with resumes like - "Bill Hudnut was here" , "a Supreme Court Justice is there"(not to mention those that are confidential). When I entered the area I think I spoke with "Miss Daisy" from the movie "Driving Miss Daisy". During the conversation I caught a glimpse of Forest Gump running down the lane.

The true delight of Golden Hill is not it's resume, it is it's homes. As presumptuous as their occupants, the homes don't have character - they are characters. Each home stands apart in design and purpose. One of the most surprising attributes of this truly historic area is that some of the homes are affordable (notice the word some). Areas within the homes are labeled like ballroom, vestibule, and quarters. You don't have to drive hours to visit historic homes. You just have to head to 38th Street on the way to the colts game!

2010 Indy Home Show Review - Time Shares for sale

I love the Indianapolis Home Show. However, I think it should be called the Gizmo's, Gadgets, and Repair Expo. Do you need a mop to pick up dog hair? Would you like information on time shares? At least 50% of the vendors/sponsors at the "show" draw up some lineal relationship as to their importance to our homes that does not make sense at my "Home" show. For example: pots and pans, chocolates, foot massagers, red wine smoothies, pecans and pistachios, hot tubs, vacuums, children's toys and books, Avon, cocktails, candles and air fresheners, Toyota cars, newspapers, exercise equipment, dresses and sweaters......all of these do not "tickle" my interest. I honestly heard a Michael Moore look alike time-share salesman shout out "Wanna go to Branson...I got my H1 shot so it is safe to talk to me!" WOW! That is exactly what I came to hear at the "Home" show! Run, Forest, Run!!!!!

My favorite "find" was Phil Ping, a professional arborist and tree expert. Now, meeting him was, honestly, worth the price of admission. My clients have lots of tree questions that I could not answer; now I can! Flooring Artisan J.L. Stader and Visions in Hardscapes (decorative concrete expert) were two other cards to keep! The center piece home was expectedly dirty and overdone. The blue neon "MAN CAVE" sign was fun and tasteless. However, to the these and the rest of the true "Home" vendors who support this adventure to the fair grounds each year I applaud you. This show really does start the "spring" house selling season. This "Vendor Fair" is educating, entertaining, and fun!

Now, onto the Flower and Patio Show - I am looking forward to more chocolates and time-shares!

Carmel School Delayed for Starbucks Coffe

NEWS RELEASE
City of Carmel

January 8th, 2009

“By 2:30 a.m. on Friday all roads in the City of Carmel including main, secondary and residential were cleared”

This is great news! But, on January 8th, 2009, the Carmel Clay School System was still delayed 2 hours in opening. I don’t understand. Were the lines too long at Starbucks for the bus drivers to get their coffee and warm up the bus in time to get to the bus stops?

In hind sight here is my news release to the Carmel Clay School System

NEWS RELEASE – Jason Rose – 7:00 AM January 7th

Snow is coming down so hard that I had to shovel my drive twice, slide off the road once, and nearly collide with a Tractor Trailor on US 31 in order to get my child to school on time. Preparation for the “business as usual” day started hours earlier. I am fine with that…I am a business owner, father, and Midwestern American. I am used to it. I merely wonder what our fine elected officials are thinking! Where is the school delay on this snowy day.