This might help you in the days ahead

I’ll admit it. Despite the great time with the family over the holidays, the excitement of reflecting on the year’s achievements, and planning for an incredible 2010 with my real estate business, I’ve been feeling a little overwhelmed over the past few days.

I’m sure you can relate to the feeling. Those times where you feel there is just too much to do, you have a million thoughts running through your mind simultaneously, and you have this underlying sense of being “stuck”. It’s not a good feeling and it’s highly unproductive.

I thought I’d help by providing some quick tips on how you can get over that feeling of being overwhelmed. These are things that have helped me personally to go from “stuck” to moving forward in my real estate business (and this can of course be useful outside of business):

1. Put things in perspective (i.e. look at the brighter side of things). Take a moment to reflect and/or write down some of your accomplishments and what you’ve overcome – you’ll appreciate where you are and will also realize that in the grand scheme of things, this “endless to-do list” is not the end of the world! It can be tackled. You may even want to talk it out with a trusted friend or advisor who always helps you see the brighter side.
2. Write it down. If you have a million thoughts running through your head, you’ll feel a great sense of relief when you can at least get them down on paper.
3. Break it down. Once you’ve written down those thoughts and that seemingly endless list of things to do, categorize and prioritize.
4. Take one step at a time and enjoy the experience of completion. Even after you break it down, you still may feel like its just too much to do. Remember that you can only do one thing at a time. Complete just one thing and you’ll be motivated to complete another. One step at a time.
5. Delegate. Remember you don’t have to do it all. Divvy out tasks that can be done easily be others, even if your only affordable resource is a willing spouse or child.
6. Set a timer. One of my friends shared this one with me. To ensure she can stay on target and not be distracted, she’ll set a timer to complete the task and stay focused on that one task during that specified time.
7. Take short breaks and treat yourself for even your small accomplishments. This works wonders for me personally. I give myself a treat whenever I complete a few items on my prioritized to-do list. That treat can be whatever makes you happy – catching up on some reading, calling a friend, watching TV, etc, but the idea is to make it a short break (15-30 minutes) and then get back to work!
8. Under promise and over deliver. You’ll feel much better and garner more goodwill with your clients/customers, co-workers, etc. when you can promise only on what you know for sure you can do and then – if time and motivation level permits – work your tail off to give more.
9. Learn how to say “No”. This doesn’t just apply to saying “No” to others…sometimes you need to say “No” to yourself!

This is Awful...

For those well connected to the government, a fast acting and effective program.

The Obama administration’s decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.

The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.

Unlimited access to bailout funds through 2012 was “necessary for preserving the continued strength and stability of the mortgage market,” the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.via WSJ

Mortgage Rates to Climb in 2010.

I read this today and I do agree. It is no secret that money has been exceptionally cheap this year, provided you can qualify for a loan. Rates this low have not been common for half a century. But, according to a recent article in the New York Times, today’s “super-low rates are not likely to last much longer.” You will be excused for thinking you might have heard this before, as commentators have been making predictions almost identical to this since at least March of 2009. Indeed, I’ve personally been somewhat surprised how long sub 5% rates have persisted in the market, largely as a consequence of the Obama adminstration’s extraordinarily loose money supply policies.

However, if you’ve been sitting on the fence on a new acquisition or refinancing of an existing property, you might want to (finally) sit up and take notice. As the New York Times indicated, there are signs that the Fed is planning a serious change of course that may have profound consequences for the credit market. The Times wrote that the “the Federal Reserve program that has driven rates to such lows, which involves buying $1.25 trillion in mortgage-backed securities, is scheduled to expire in March, and Fed leaders have said that it would not be renewed. Some analysts believe rates could jump as high as 6 percent in the spring.”

Here is a follow up on Goldman Sach

Remember when AIG got an $85 billion dollar bailout because it was too big to fail. AIG had been a main proponent of the credit default swaps that motivated the mortgage industry to make any and every loan it could.

You got it, the same credit default swaps that drove the housing bubble.

Of course looking back we see that these loans were insane to be written, helped to undercut the housing market, and is a key component to the recession that we are in now. And made the lives of millions of American’s miserable.

Well today the Wall Street Journal has uncovered that out of the bailout the fine folks at Goldman Sachs was a key driver behind AIG’s disastrous decisions. The same Goldman Sachs that has given us Henry Paulson, the Treasury Secretary that put the deal together for the AIG bailout.

A Wall Street Journal analysis of AIG’s trades, which were on pools of mortgage debt, shows that Goldman was a key player in many of them, even the ones involving other banks.

Goldman originated or bought protection from AIG on about $33 billion of the $80 billion of U.S. mortgage assets that AIG insured during the housing boom. That is roughly twice as much as Société Générale and Merrill Lynch, the banks with the biggest exposure to AIG after Goldman, according an analysis of ratings-firm reports and an internal AIG document that details several financial firms’ roles in the transactions. via the WSJ

So as Lehman Brothers was going under and Merrill Lynch was on the ropes, so was Paulson’s Goldman Sachs. The firm was on the hook for 33 billion of the worthless credit default swaps.

Now this is pure conjecture, but look at what happened:

• AIG gets an 85 billion dollar credit line from the Federal Government orchestrated by Henry Paulson.
• Goldman Sachs is protected from an impending financial disaster and gets 14 billion dollars from the government.
• Paulson’s old firm, Goldman Sachs, posts record profits while other banks are worrying about their survival.

Okay, maybe not that much conjecture after all.

The only saving grace is that even the top 30 Masters of the Universe at Goldman Sachs are feeling the heat and are not taking cash bonuses this year. Oh, they are still taking bonuses in shares, so the nobility is just postponed as they know they have their hand so deep in government now they are safe. It seems like the only safe bet in the market today is that Goldman Sachs will make money.

And don’t forget the 31,000 other employees at Goldman Sachs who will still get their higher than normal cash bonuses. Hey, 2009 was a great year to be in the financial business, right? Right?

So while we in the real estate world are suffering with an industry pummeled by terrible decisions made at Goldman Sachs and backed up by AIG and belts across America will be tightened up this Christmas, the folks at Goldman Sachs will be getting ready to spend their windfall.

Their windfall that came via the Federal Government.

The windfall of your tax money or more realistically money that they are borrowing from our children’s future.

The windfall that Henry Paulson arranged for his buddies back at Goldman Sachs.

Tips on Foreclosure

I recently went to a class on Distressed Property. I am now certified to sell this type of property and here are 6 tips for buying foreclosures:

1. Use cash or get pre-approval from the lender you are buying from – Cash is king. Many banks will take a cash offer before they even consider a financed offer. If you are getting a loan, get pre-approved from the lender you are buying from.
2. Don’t get caught up in bidding wars – Competition will bid up the price, do not get caught paying too much in a bidding war. Stick to your criteria. 70% LTV max with strong cash flow.
3. Evaluate lots of deals – Some fall in love with one deal and do whatever they can to make it work. It is highly recommended to fall in love with tons of great deals and then to evaluate and purchase best one. Make sure to always have more than one great deal in your pipeline.
4. Contact the lender directly – Creating relationships with asset managers can give you an inside track on short sales.  If the bank takes the property and you make an offer quickly, it can result in a deal without other bidders.
5. Target fixers – Move in ready homes will have more competition, targeting fixers will allow you to buy at large discounts and add value through rehab. Make sure you have a contractor look at it, do your inspections and due diligence.
6. Talk to the listing agent – Asking the listing agent if you should write an offer and at what price sometimes will give you an edge. They may tell you what the other offers are at or that there are no offers and you may be able to find out the banks bottom line. If the listing agent represents you then they have extra motivation to get your offer excepted as they have the incentive of a double commission.
   

Bank of America remodified mortgages

Bank of America announced today they have modified more than 600,000 mortgages since January, 2008. The numbers represent $215 Billion to help refinance these mortgages. The total’s include those they purchased in the Countrywide Home Mortgage acquisition.

But they represent a failure.

These are some pretty powerful numbers but they are a bit disappointing. Why, because back in January Bank of America promised to modify 630,000 to avoid foreclosure. Reading the comments of the post I did back then shows a great deal of incompetence and neglect.

Add to that the disappointment for families that were told the company was going to rework many more mortgages than they actually did you can see the frustration emanating from their customers.

So Bank of America. Congratulations for solving 600,000 poor delivered mortgages. Now step up and fulfill your promises made to your customers.

The renegotiated loans were done through its own programs and the government’s Home Affordable Modification Program, the bank said.

Bank of America has concluded more than 450,000 loan modifications since January 2008 under its own programs. That includes about 225,000 modifications so far this year.

Through the government program and others, Bank of America said it has provided $215 billion to refinance existing mortgages. via the AJC

Understanding Options for Homeowners.

• Refinance: If you have enough equity in your home, your new mortgage could pay off the old loan along with any late fees and attorney fees. If you decide to pursue a refinance, remember to shop around for the best terms and compare the Annual Percentage Rate (APR).
• Reinstatement: Your lender may agree to let you pay the total amount you are behind, in a lump sum payment and by a specific date. This is often combined with forbearance when you can show that funds from a bonus, tax refund, or other source will become available at a specific time in the future. Be aware that there may be late fees and other costs associated with a reinstatement plan.
• Forbearance: Your lender may offer a temporary reduction or suspension of your mortgage payments while you get back on your feet. Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments.
• Repayment Plan: This is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.
• Loan modification: This is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable. The President's plan also offers loan modification.
• Best bet is to call your mortgage company and keep the communication open. The last thing you need is to go into foreclosure on your home. I am a Certified Distressed Property Expert, there is a solution for you. Call 630-464-2633. Beth
  

This is a Buyers delight.

Consider the following…

1. The world markets got the crap scared out of them when Dubai essentially defaulted on a very high number of loans… telling their lenders that they would not be making interest payments for at least 6 months. The result of this default has driven risk-averse companies and individuals into traditional safe havens, and one of those safe-havens is US Treasuries. Specifically, the ten (10) year Treasury note. The effect of spooked investors moving to “safe” havens has been to drive down residential mortgage interest rates.
2. Since mortgage rates are at their historic lows, as of this writing they were at 4.78%, the “affordability” index moved, such that more homeowners can now afford higher priced homes; or for many first-time home owners they now can qualify to make the payment on a loan.
3. The Home Buyers Tax Credit has just been extended and expanded. This continues the window of opportunity (through April 30th 2010) for real estate investors to purchase, renovate and sell homes to buyers looking to take advantage of this credit.
4. The continued high rate of foreclosures continues to provide a great number of quality deals to real estate buyers and I predict that this trend will continue for the foreseeable future.

Come See Villa Taj......

f you’ve ever wanted to take a closer look at the Gold Jerusalem stone, 4,000-pound grand entrance doors to the home at 6501 County Line Road, Burr Ridge, all you need is a ticket.

The home, called the Villa Taj due to its size and 4.5-acre setting, is part of the 2009 Holiday Home Tour sponsored by the Hinsdale Center for the Arts. Tickets are $35.

One of the nonprofit organization’s prime fundraisers, the tour is scheduled for 1 to 5 p.m. Dec. 6 and includes four Hinsdale area homes that will be open to hundreds of visitors.

“We are really excited about the four homes that will be showcased,” said Beth Waldo, one of the event planners. “The home at 6501 County Line Road, we call it Silk Road, has drawn a lot of interest from people who have seen it being built, and we are thrilled to have it on our tour this year.”

Each year, the Hinsdale Center for the Arts reaches out to homeowners of unique homes to include on the holiday tour, which Waldo said will draw more than 500 visitors.

Joe and Anita Bauer, owners of the Gothic Revival-style home at 304 S. Lincoln St., Hinsdale, agreed to showcasing their home to help the center.

“It is certainly a worthy cause,” said Joe Bauer. “We were approached last year and declined, but said yes this year.

“Anita began decorating after Halloween, and we hope people will enjoy our ‘Christmas years ago’ decorating style.”

Various sponsors, from interior decorators and florists, work with a team captain assigned to each house to come up with a unique decorating scheme.

“What we try to do is come up with a plan that complements, embellishes the vision of the individual home owner,” Waldo said. “We try to stay true to their holiday decorating ideas.”

Tour sponsors will visit the homes about a week beforehand to put the finishing touches on existing holiday decorating, Waldo said.

Choirs will be at each home to provide musical entertainment.

Patrons can purchase tickets at a number of locations in Hinsdale and surrounding communities, as well as the Hinsdale Center for the Arts, 5903 S. County Line Road.

Tickets can be purchased the day of the event at one location only: 28 E. First St., Hinsdale, the site of the HCA’s 2009 Adornments display.

For a complete listing go on line at hinsdalearts.og.