I just finished watching Missy Caulk's smilebox presentation for Thanksgiving, and if you haven't yet seen it, you don't know what your missing...accompanied by the music written by Louis Armstrong, What A Wonderful World, Missy's creation, better than any, elicits the emotions and the love and the appreciation and the care we Active Rainers have for each other...

Go on over, I'll wait a few minutes...  

So many diverse personalities, moods, temperaments, opinions, religious and political viewpoints, all melted together in one 'smilebox' of thanksgiving!  

Sunday is usually the day we set aside as a day of rest, reflection, giving thanks, and worship for many of us, and Thanksgiving Day gives us a second opportunity this week to express our thankfulness...  

If we can think of little else to be thankful for, it is our Active Rain Family that rises to the top of the list...

Missy asks, "Jon, do you know what you have created here?" several times...  

I'm sure if you could read Jonathan's heart he would be the first to admit that the seed of Active Rain which he has planted and nurtured far surpasses his ability to explain the camaraderie and bond among its members which has grown in just a few short years...  

Yes, I've seen and listened to some negative stuff here in my year and a half journey through THE RAIN...personal attacks, envy, bitterness, gaming the system, egoism, cliques...and sure, we experience a fair share of 'cyber diarrhea' and system failureshiccups, but all in all, aren't we all much better off for having walked through THE RAIN...???  

Missy, thanks for the Thanksgiving smilebox...and for reminding us that we need to be thankful for Active Rain and all its members, especially our blogging buddies!!!

Happy Thanksgiving...!!!

                                               

Tips for Home Sellers

When it's time to sell your home here are a few simple tips for realtors and home sellers alike. 

Turn on your heart light.

Turn on the excitement by turning on all your lights - both inside and outside. Whether you are showing your home in the evening or in the day, lights add color and warmth. Prospective owners feel welcome in spaces that are bright and airy.

Don't crowd your buyers.

Potential buyers often feel like intruders when they enter your home. Rather than giving your house the attention it deserves, prospects are likely to hurry through. When the homeowners are present people often feel uncomfortable looking in closets and laundry rooms an other private areas. Additionally, rooms filled with people give the impression that the space is small.

I love pets ... but not your pet.

Dogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. Some prospects are allergic to some animals. Sadly, many people love their pets, but they don't like your pet. It's in your best interest to keep the animals outside or out of the way of potential buyers.

Don't create distractions

Rock-and-roll will never die. But it might kill a real estate transaction. Most of us love music, but not all of us love your music. When it's time to show your home, it's time to turn down the music. Turn off your TV because the last thing you want is for one of your buyers to watch the game while his wife falls in love with your house.

Give a wide berth.

A smiling seller is a welcome site, but a pesky seller will chase a home buyer away. It's important to be friendly but avoid being conversational. Anything you say could be construed to imply a warranty or could cost you thousands in negotiations.

Put things in perspective.

Some buyers will point out shortcomings or flaws in the property. It's best not to respond orally to these challenges. Utterances like these are seldom personal in this context. So, never take offense. Understand that these statements might be an indication of the buyer's ignorance, but sometimes the buyer attempting to frame negotiations with these statements. To engage the comment is to agree with the premise of the utterance.

 

I don’t usually shop at Sears, I admit it. (Although I did walk through the other day and found a really cute, hot, lime green peacoat by Lands End.)

But, I am going to shop there this Christmas season.

Why?

As a mother of two sons in the Navy, I read and loved Sears support of our military.

Not only do they support our sons and daughters in Active Duty but also those who are in the Reserves. Please take the time to read everything they do for those serving in the military. I had no idea, but they have been doing this for years.

Military Pay Differential and Benefits Continuation

In September 2004, the company extended its military pay differential (fills the gap between military pay and employer pay) and benefits continuation to 60 months for eligible employees called to duty in the Reserves or National Guard.

1) While deployed, eligible employees can:

2) Continue participating in SHC's life insurance, medical and dental programs.

3) Receive annual merit pay increases, incentive pay.

Sears Holding Company which includes KMart holds a comparable position for deployed employees for up to five years. The company has encouraged and supported employees serving in the armed forces for decades.

Records indicate that Sears provided support to employees serving in the military in 1916. Sears pay differential was first instituted in 1990 for Operation Desert Shield-Storm.

I encourage you to read some of the stories of Heros at Home, and how they have helped with wheelchairs, and remodeling of homes.

Any U.S. company, like Sears and K-Mart that is doing so much good for our men and woman serving in the Military are on my shopping list this year.

You can also Click here to donate.

***Just found out Jamie in the photo above is being deployed in January. He is in the Navy reserves and he had no clue until the phone rang on Wed. morning. ***

Hi & Happy Thanksgiving!

Not too long ago we witnessed the launch of the new, F-R-E-E Traffic Travis 3.0, to amazing success.

Thousands of people have seized the opportunity and downloaded this outstanding tool, and they're already using it to gain an edge over their competition in the search engines.

If you haven't downloaded it already, then you should be aware that your competition probably has.

Ask yourself -- Do you really want to be giving them a head start using this? Or are you wanting to be ahead of the game yourself?

Here are just some of the tools you'll find inside. Remember it doesn't cost anything, it's F-R-E-E!

• Page analysis: Almost like having an SEO expert look at your webpage and tell you what you are doing right, and what you are doing wrong. This tool does all that, and then gives you solutions for improving your on-page SEO! Oh, it also gives you a grade. Are you an A+ student, or is your site going to flunk?
• Position ranking: Keeps a daily, weekly or monthly record of exactly where your website is ranked for any search term. Check all the major search engines (Google, Yahoo, MSN Live, Ask and Altavista) and see whether you're going up in the search engines ... or down.
• Keyword finder: A cutting edge keyword finder tool to give you a huge number of relevant keywords.
• Keyword sorter: An essential keyword sorter tool that enables you to categorize extremely large lists of keywords into targeted adgroups for PPC purposes.
• Top sites for keywords: Quickly find all the top sites for your various keywords... then analyze them to see if you can steal some of their tricks.
• Backlinks to site: Who is linking to you? Who is linking to your competitors? What pagerank are they? What anchor text are they using? Checking all this information by hand would be a full-time job, but Traffic Travis does it with just one click. And by analyzing your competitors with this tool you can find other great sites to buy/trade links with.
• Keywords/details: Discover how many advertisers are advertising on each keyword and whether there's a heavy turnover in advertisers. This could mean that the keyword isn't as profitable as everyone thinks!
• Top sites for keywords: Who are the biggest players in your niche? Which keywords are they bidding on? Suss out who your major competitors are, and then analyze their campaign. After all... they must be making money...
• Websites Keyword list: A more indepth keyword snooping tool... this shows you whether competitors keep advertising on a particular word, or whether they drop it periodically. (Consistently advertising on a keyword means it must be really profitable!) This tool also easily shows ad ranking position, so you can see which positions seem to work the best...

There's loads more, I could go on all day. But it's probably more interesting for you to go and download it and see for yourself! After all... it doesn't cost anything!

If you delay and regret it later, don't say I didn't recommend that you do this now :)

FREE SEO SOFTWARE

To Your Success!

Judi

 

                                     * * * *  HARD CORE REAL ESTATE TALK  * * * *  

IT PAYS TO BE BIG.  IT PAYS EVEN MORE TO BE VERY BIG.  CITIGROUP IS THE BIGGEST AND IT APPEARS THAT THEY GOT THE MOST, SO FAR. . . . .

 

• $20,000,000,000 CASH TO CITIGROUP.
• $306,000,000,000 GUARANTEES TO CITIGROUP.

CITIGROUP'S BAD MORTGAGE-BACKED-SECURITIES PORTFOLIO ARE GUARANTEED AGAINST LOSS - - -LOSS TO CITIGROUP, THAT IS.   

THERE IS NO GUARANTEE FOR THE AMERICAN HOME OWNER FOR THEIR LOSS OF HOME VALUE.

THERE IS NO CASH TO THE AMERICAN HOME OWNER TO HELP THEM MAKE THE MORTGAGE PAYMENT ON A HOME THAT IS NOW WORTH ALMOST 1/2 OF WHAT THEY PAID FOR IT. 

WHAT DOES THE FUTURE HOLD FOR THE AMERICAN FAMILY?  I wonder what our real estate market will look like 5 years from now when most of the ARMs have reset and when many home owners are making payments on mortgages that are 1/2 of their gross monthly income.  Wages are increasing at about 3% a year, but unemployment is going up and that should put downward pressure on wages. 

With the percentage of the family's morthly gross income going for housing, the family will not be able to follow their financial plan, if they have one.  The scenario for the average American family struggling to make their mortgage payments is not a pretty picture. 

• The college fund will dry up because the parents needed the money for the mortgage payment.
• The roof will continue to leak because there's no money to replace it after paying the mortgage payment.
• Dad's not home much any more because he needs more overtime to make the mortgage payment.
• Mom and Dad are driving 8 and 10 year old autos because they can't get financing on replacements and don't have money left over to save after making the mortgage payment.
• There's no money for life insurance for the family after the mortgage payment. 
• No more payments are made to the 401K because the family has to make the mortgage payment.
• Family vacations are not planned because there is no extra money after paying the mortgage. 

HOW MUCH MONEY IS LEFT IN A HOUSEHOLD BUDGET WHEN THE MORTGAGE PAYMENTS REQUIRES 39%-45% and 51% OF THE FAMILY GROSS MONTHLY INCOME?? 

• The median income for men is about $45,113 a year.
• The median income for women is about $35,102 a year.
• The median home price is about $229,100. 

When the family purchased their home in 2005, they paid $400,000 for an 15 year old property, their dream home.  Their home was priced at the average price for their location for the 2005 real estate market.  They qualified for a mortgage loan with 10% down.  Their mortgage loan was a 3/3 year ARM starting at 5.5% and resetting to 7.5 in 3 years and then 9.5 in 3 more years.  That means that in 2011, their interest rate will be 9.5%.  Taxes are about $400 a month and home owner's insurance is about $50 a month. 

• PI on their $400,000 home in 2005 was about $1,932. 
• Taxes on their home is about $400 a month.
• Home owners insurance is about $50 a month.
• MI is about $120 a month. 
• Their total mortgage payment in 2005 was $2,502, or 39% of their combined family income.

39% of the monthly gross income for a mortgage payment is high.  However, this American Family is very thrifty and has saved a 10% down payment, have no car payments for their 4 and 6 year old cars and pay their credit cards off every month.  So, with good credit scores, they qualified easily.  They anticipated refinancing their mortgage loan prior to reset in 2008. 

• In 2005, their mortgage payment was $2,502 @5%.  Their combined income was $6,400 a month.
• In 2008, their mortgage payment went to $2,965 @7%.  Their combined income is $6,600 a month.
• In 2011, their mortgage payment will go to $3,466 @9%.  Their income will be about $6,800 a month.

This anticipates the average rise in income of about 3% a year. 

• In 2005, this family's mortgage payment was 39% of their monthly gross income. 
• In 2008, the family's mortgage payment went to 45% of their monthly gross income.
• In 2011, the family's mortgage payment will go to about 51% of their monthly gross income.

In 2008, when our family contacted their loan officer about refinancing their home mortgage, they were unable to do so because the market value of their home had fallen to $300,000.  The family is now "upside down" and owes more than the value of their home. 

WHERE IS THE RELIEF FOR THE AMERICAN HOME OWNER WHO STRUGGLES TO MAKE THEIR PAYMENTS? The mortgage companies are stubbornly clinging to their belief that the American home owner will continue to pay for a home that is worth half what they are paying for.  Sooner or later, the American home owner will be bled dry and then another round of foreclosures and short sales will begin.  No family with children can continue to make mortgage payments of 45 to 51 percent of their gross monthly income. 

SOME EXPENSES ARE MANDATORY.  Federal taxes for a family in this income bracket are not high.  However, they have Social Security taxes of 7.6% a month.  Monthly payments for their share of health insurance is about $200 a month.  Groceries for a family of four is increasing every month.  Gasoline and maintenance and insurance on their vehicles is about $600 to $800 a month.  There is simply no money left in a family budget after making their house payment, if they have a budget.  Budgets don't work when the expenses outstrip the income.  The family begins to make minimum payments on their credit cards and begins to go deeper in debt each and every month. 

This is a typical American home owner who purchased a home in 2005 and is headed for financial disaster. 

WHAT IS THE SOLUTION?  Until we have a national write-down of mortgage balances, the home owner will not survive.  The banks may, buy the home owners will not.  As with our hypothetical American family home owner above, folks will continue to go farther and farther in debt.  Real estate taxes are likely to increase as towns and cities feel the crunch from loss of property values and the concomitant loss in revenue. 

TRICKLE DOWN ISN'T HELPING THE AVERAGE AMERICAN FAMILY BECAUSE THE BANKS ARE NOT HELPING FAMILIES.  THEY ARE HELPING THEMSELVES and THEIR SHAREHOLDERS.  Those same shareholders who benifited from the stock value and dividends in 2004, 2005, 2006.  IMO, the focus on helping the banks survive has been wrongheaded from the beginning.  Those same banks benefited from the housing boom are now benefiting from tax payers and the tax payers are being left in the dust.

This has been the most wrong headed government program I've ever witnessed.  It's easily worse than the farm bill, the transportation bill and other government give-aways. 

BAIL-OUT TO CITYGROUP FOR GUARANTEES AND CASH - $326,000,000,000.

GOVERNMENT HELP FOR AMERICAN FAMILIES?  I seem to recall that there was a "stimulous" program some months ago?  I can't recall the details, but for our family above, it would pay for their grocery bill for about a month or two.  The stimulous that put money in the hands of the American family was about $300 for a single person or about $600 for a family for about 120,000,000 households.

WHAT'S WRONG WITH THIS PICTURE?

                 

The hottest buzz word in the industry right now is not short sales nor foreclosures. It's all about loan modifications. Lots of unscrupulous businesses are springing up that offer consumers help with their loan modifications, and they are charging home owners $3,000 and more to do what home owners can do for themselves.

To find your lender's loan modification requirements, click on the photo and you will find my article on About.com, which details major mortgage lender guidelines for loan modifications.

Nobody wants to admit it, but the lenders are making loan modifications seem confusing and difficult. Perhaps it's an effort to discourage applications? If you're considering a loan modification, the first thing you should do is pick up the phone and call your lender to find out if you qualify. If you do not qualify, and can no longer afford to make your monthly mortgage payments, then call a short-sale specialist and put your home on the market as a short sale. Many lenders are placing a 3- to 4-month moratorium on foreclosures, so this will give you extra time to get that home sold.

The criteria for a loan modification is tight. Many banks insist on the following qualifications:

• Existing loan origination date prior to Dec. 31, 2007
  
• Existing subprime loan (fixed or adjustable) or Option ARM
• Loan-to-value ratio above 75%
  
• Owner occupied as primary residence
  
• Employed homeowner
• Existing mortgage payments exceed 31% of gross monthly income.

However, if you qualify for a loan modification, you can assemble the paperwork the lender wants by putting together the following package:

• 2 years of W2's
• 2 years of tax returns
• Financial Statement that lists assets and liabilities
• Last 2 pay stubs
• Hardship letter

Don't pay a company to do this for you. Do it yourself.

If you are successful, a loan modification may give you:

• A lower mortgage balance.
• An interest rate between 2% and 4%.
• A loan term of 30 to 40 years.
• A low monthly mortgage payment.
• Elimination of negative amortization and / or a waiver of prepayment penalties and fees.

Remember, California short sale sellers, you have until December 31 to sell that home to avoid paying state taxes on debt forgiveness.

Happy Thanksgiving, everybody, and Happy Debt Forgiveness!

Photo: Big Stock Photo

The Short Sale, by Elizabeth Weintraub, coming from Archer Ellison in January 2009.

Giving Thanks...

There is something to be said when I can go to my home and feel safe..very safe..or I can drive a car..and work where I want...I can openly express my views..I can make as little money or as much money as I want...and I don't have to worry about being imprisoned for saying the wrong thing.  Because the U.S. military..protects me!

I'm not about war..I would rather everyone live in peace and harmony..but I am a realist..and still regardless of my personal feelings about war.... I'm thankful for our U.S. military.

I don't always agree with our government..and I can see beyond enemy lines..I'm safe...I'm FREE and so very thankful...thankful for those that fight for us everyday!

If I see a soldier...I cry and am so overwhelmed with a a wide variety of reasons..it just comes out of me...I can't control it....because I'm grateful.... I cry for appreciation...for their sacrifices..and the gratitude I feel for my FREEDOM! 

Soldiers sometimes fear..when its all over and time to go home..how the public will accept them...how they will be able to just have an ordinary life..but most of all will their friends and families love them and understand the new person they have become?

Sometimes..they need to be reminded..of why they fight..why they don't sleep or eat for days on end..and why they volunteer to be away from their loved ones.. Funny thing about the troops...they don't need to think twice....

They have a job to do!

So do we!

So tonight while you are giving thanks..remember those that serve our country.  Remember those that will be missed at a Thanksgiving Day gathering.

If you are privileged enough to share Thanksgiving Dinner with a soldier tonight...please give them a special message from me..Midori Miller thanks you and loves you..oh and don't forget kiss them on the cheek..because if there was a soldier close to me....I admit... that is exactly what I would do!

That's right ladies and gentlemen...I invite you to a reblog celebration!  Happy Thanksgiving Friends and enjoy this very special day!

 

Mortgage Rate drops and sets off a Rush to Refinance let there be Thanks for this Thanksgiving.

The biggest one-day decline in mortgage rates in 7 years set off a frenzy of refinancing yesterday, as homeowners who'd been waiting for a bargain jumped into the market. The nearly one-point decline was prompted by the Fed's $600 billion commitment to buy mortgage-backed securities, reports Bloomberg. "It's the folks who have been sitting on the sideline," said a Bank of America exec. "They're jumping in with this news."

Economists praised the Fed's move, which helped drop the average 30-year mortgage rate from 6.38% to about 5.5%, one saying it "may hasten the day when we finally find a bottom in housing." Some brokers told the Wall Street Journal it was the most activity they've seen in a year. To qualify for lower rates, consumers will need a credit rating above 720 points and have at least 20% equity in their homes.

Sources Bloomberg, Wall Street Journal

What this time of year means to me.

This time of year means family, food, love, warmth, happiness, and gratitude.

It means coming together and putting aside differences and eating food that has been lovingly cooked for those most important to us to enjoy.

It means laughing and singing and pouring over old pictures and talking about memories past and building memories for the future.

It means being grateful that we have the opportunity to share time and space with those still here to enjoy another day on earth.

It means being thankful for the food, heat, water, electricity, and roof over our heads that we wish everyone had. It means giving what you can to those less fortunate and doing so with a loving smile and embrace.

I wish everyone a wonderful happiness filled Thanksgiving and here’s to hoping that you make wonderful memories with your family and friends.

 

Happy Thanksgiving!