Club Chaos Agents - All Things Hollish, Wacked, and Jacked

Over the weekend I have been plagued with numerous technology failures. After the first few, I was able to perform some workarounds to keep up with my weekend workload.

But things have gone downhill from there. Now I am having to develop a new set of workarounds over and above the original stopgap measures.

I have a lot of REO reports due on Monday, and it is critical that I am able to get the job done somehow. But now even the simplest of tasks involves running up and down the stairs several times!

Even though I have spent a lot of time making mountains out of molehills, I’ll get the job finished one way or the other.

And I will get PLENTY of exercise in the process!

One of my favorite restaurants in Sacramento is The Waterboy. I'm not alone in that opinion. Many Sacramentans love The Waterboy. What's not to love? Creative yet traditional cuisine, local ingredients, great wine selection, excellent service and convenient location in Midtown. I'm also a big fan of plush seats, and not every restaurant offers comfy bench seating like The Waterboy.

The abundance of glass windows provide a superb view of 20th Street and Capitol Avenue. Lights from other buildings and traffic twinkle. People mill about in the streets after dark. Midtown Sacramento comes alive when the sun goes down. I should mention that Chef / Owner Rick Mahan also does an excellent job over at OneSpeed Pizza in East Sac, but The Waterboy was here first.

When we were seated at The Waterboy, the waitress asked if we were celebrating a special occasion. I'm not so sure a waitress should ask that question because it implies that The Waterboy is not a place to have dinner on a regular basis. And it is. It's a fabulous local hang out. When my husband asked if I felt like a steak and offered up The Waterboy as an excellent choice for dinner, I agreed with him. But then I realized I had a gift certificate to The Waterboy.

I had forgotten that a client had given me a gift certificate. Just like my client had forgotten to mail it. I think he remembered that he bought it when he received a holiday card from me, which must have jolted his memory. Shortly after I mailed out my holiday cards, I received the gift certificate in the mail from him. The gift certificate was dated last August, right after we closed on his Midtown condo. So, Galen, if you're reading this, thank you, again.

I opted for an appetizer of house smoked salmon and ahi tartare, adorned with watercress, thinly sliced avocado, tiny olives and salsa verde. I realize raw fish isn't everybody's choice, but for those of us who love it, it melted in my mouth. The salmon was remarkably fresh and delicious.

When the waitress asked how I wanted my steak, I hesitated. I hesitated because I prefer steak medium rare. But I rarely get it medium rare. In fact, I'm almost afraid to order a medium rare steak when I dine out because it often arrives overcooked and medium. Inedible. Sometimes, I order steak rare, and then it either arrives all bloody and barely seared or it's perfectly medium rare. I figure I've got a 50/50 chance. But, because we were at The Waterboy, I had faith in the chef.

Sure enough, I ordered medium rare and I got medium rare. The steak was unforgettable. You can't go wrong at The Waterboy.

Photos: Elizabeth Weintraub, BlackBerry BOLD

We are often told that we should NOT make waves, or that those that rock the boat are destined to fail. Nothing could be farther from the truth.

Quite often the pack mentality crushes creativity and squelches excellence. And the chances of being noticed as an individual worthy of consideration are diminished.

Because our unique value proposition is what separates us from the norm and defines us as innovators or leaders in our field. If that means churning up the waters a bit and swimming upstream then so be it!

Nobody ever said that achieving success was easy! Or that there will not be some awkward moments along the way.

Standing out from the crown takes confidence and courage. But it can take you straight to the top!

As my friends in the Northeast continue to dig out from the last snowstorm, here in Newnan Georgia we have a beautiful and warm winter day!

As temperatures neared 70 degrees, a lot of people were out and about getting a jump on some yard chores. In this part of the country, Spring usually arrives in earnest around March 1!

It’s time for early pruning and planning the garden. And although we will have more bad weae next few weeks, now is the time to put down the gardening books and get busy!

Today was probably just a tease, but my mind is now adjusting into “Spring” mode.

I am REALLY looking forward to its arrival!

When it comes to mortgages, there are so many frequently asked questions. One mortgage topic that gets many misleading answers is mortgage insurance, specifically FHA mortgage insurance.

Why do I need FHA monthly mortgage insurance if I put 20 percent down?

Aren't FHA loans more expensive? (many refer to this because of the upfront mortgage insurance)

FHA monthly mortgage insurance will be there regardless if you put 20 percent down. If you put less than 20 percent down, you will have the FHA monthly mortgage insurance until you reach the 78 percent LTV level. (LTV = Loan-to-Value)  If you put 20 percent or more down, you will still have the monthly insurance for 5 years, guaranteed. Even if you put 19 percent down and you reach the 78 percent LTV in 3 years. This is a FHA guideline which is constant no matter what mortgage lender you use.

Comparing FHA loans with other mortgage programs, there are rumors that FHA loans are more expensive. Why do people say this?  In many cases it's because they are talking about the upfront mortgage insurance, which was reduced in October. Another reason would be because FHA raised the monthly mortgage insurance requirement back then also. If you break all of this down properly, depending on the borrowers credit scores and down payment amount, FHA loans are still cheaper in many scenarios.

Check out this scenario with 10 percent down and a credit score of 699. FHA loans vs Conventional loans with 10 percent down - What is not talked about much regarding conventional loans is it's very tough and or very expensive to get mortgage insurance on conventional loans with credit scores below 700 and or with less than 10 percent down.  Besides, Conventional loans will become more expensive come April 1st, 2011. Fannie Mae increases their pricing hits

Summary : One last thing that needs to be talked about is that you need a solid/strong loan officer who will not only be able to compare certain mortgage programs properly, but ask the right questions. An important question that gets over-looked are the borrower's goals, present and future.  I bring this up because I had a borrower who was buying a home that was worth $40,000 more than the purchase price. And by asking him the right questions, I was able to determine that he wanted a 5 year arm not only for the lower mortgage payment, but because he was planning on getting rid of the monthly mortgage insurance in less than 5 years with more equity in his property. I asked him, "what mortgage program will you be using when you refinance."  He had stated a FHA loan. Rut row... but as I mentioned above, you will still have mortgage insurance for 5 more years again, even if you refinance with 20 percent or more equity. The previous loan officer that he was shopping with and comparing me to never brought this up. Just because one loan officer might be cheaper in rate and or costs, it could still cost you thousands of dollars more when it's all said and done. Just food for thought when shopping for mortgages.

Since the dawn of cognitive thought, human beings have attempted to predict the future. Old texts and manuscripts are rife with tales of fortunetellers and soothsayers that seemed to have the innate ability to peer into times yet to come.

In the modern information age, we do have the ability to analyze trends based on empirical data, and can offer an educated guess about what lies ahead. But it is in fact only a guess because there are many dynamic variables that can change overnight.

But if we can distance ourselves from science and mathematics and offer our predictions from a more philosophical perspective, it is always better to project an optimistic outlook for the future.

The notion of hope is not based on disconnected fantasy. Rather it is a burning desire deep within the soul to seek better times ahead. And when earnest desire is put into action, the results can be very positive!

I am not a prophet but I choose to be optimistic.

And work each and every day towards a better future!

Ever since November, we've been busier at our company than we have been in years.  November was my best sales/income month since 2007, and it appears as though February will be even better.

I'm hopeful that the market in Austin will continue its upward trend this year (and beyond).  Typically, we don't see this much buying activity in the winter.  Even since I can remember, the market begins to pick up in February.  Instead, I find myself with multiple daily appointments with clients.  I've hired a handful of new agents at Austin Texas Homes, LLC, and I'm looking to expand further this year. 

I guess it just plain feels good to be truly busy again, with buyers and sellers both.  I sense that there's a lot of pent-up demand for housing, as many people waited on the sidelines or chose to rent while waiting for other properties to sell.  Our market took longer to turn south than most areas of the country, and it seems like it's rebounding earlier as well (at least I hope that's the case). 

Having been through a couple of downturns in my career, especially with this particular rough patch, I feel more prepared to handle the good times.  If/when I get back to the income level I had in 2006, I am confident that our family will be able to save (and likely give away) a good deal of money.  At a company level, I am prepared to invest more in our marketing and brand-building going forward. 

After meeting recently with my business partner, we identified three strategies that I think could take our real estate business to an entirely new level.  I can't share any of them here, however, since they're just too darn good and creative.  :)

What's your market like right now?  I've heard anecdotal evidence that other markets are also improving.  What do you see?

If you are thinking of putting your home on the market, in addition to the standard, "declutter, depersonalize, paint, etc etc ", a simple, yet often overlooked upgrade are the "knobs" on your cabinets !!!

You can actually give a real quick facelift to some tired looking cabinets, simply by changing their knobs and drawer pulls !

There are so many different styles and sizes of knobs and pulls available these days, that you are sure to be able to find some that fit your home decor, whether its kitchen, bathroom or bedroom drawers and cabinets !

In this market where sellers are reluctant to put a large amount of money into their home just to put it on the market, replacing the knobs and pulls is a simple, quick, and inexpensive way to make your home show just a little better !

Good luck !!!

If I am going to lose a short sale to foreclosure in Sacramento, odds are that short sale is probably with PNC Bank. I'll tell you why. Out of my last bunch of short sales with PNC, only one of them closed. Those are really lousy odds. Whereas my odds with a Bank of America short sale are much higher. I'm not 100% sure because I haven't checked, but my off-the-head guess would be I lose maybe 1 out of every 25 Bank of America short sales. My success ratio at getting to the approval stage with my Sacramento short sales is pretty high.

But what's with PNC? I know that PNC will do a short sale because I have done them. I'm not even talking about the original National City loans. Albeit, every single one of those PNC short sales was a battle and felt like going to war against the Taliban. Not that I have any personal experience with the Taliban, mind you. But I have found that PNC often demands a seller contribution, and that contribution is often astronomical as compared to requests from other banks.

A potential seller with a Campus Commons home called me last night to talk about doing a short sale. He has a first mortgage with PNC. It's not owner occupied. The loan has been refinanced, and it's a cash-out refi. His hardship letter will probably not reveal any severe fall-backs. He's pretty much hosed. I'm not saying it's impossible for him to do a short sale, but if he tries, he will probably pay for the privilege. Because it's PNC.

The last short sale PNC rejected was yesterday, a situation involving 2 purchase money loans with PNC, a first mortgage and a second mortgage. The seller documented her financial hardship. The first mortgage offered $3,000 to the second. The second demanded $8,000. The first would not let the seller -- nor anyone else -- contribute to the second mortgage. The lawyers pointed to California Code of Civil Procedure (C.C.P.) 580b, that should the first mortgagee foreclose, that lender would not be entitled to a deficiency judgment because both liens are purchase money loans.

Moreover, the lawyers argued, the California Supreme Court has ruled that when a senior and a junior loan are held by the same institution, the junior lender cannot consider themselves "sold out." As such, the junior lender is barred from recovery. Because both the senior lien holder and the junior lien holder are PNC Mortgage, you can't "sell out" a client who is also PNC.

But that's exactly what PNC did. PNC pretty much told the lawyers (excuse my language): Screw you and the horse you road in on. The negotiators at PNC are guerillas, abrupt and not very polite. Where does PNC hire these employees from? The World Wrestling Federation?

Photo: Big Stock Photo

Have a mortgage question and keep getting conflicting answers and or information?  I get Trulia alerts for my state and about 70% of the time, there are both loan officers and or realtors answering mortgage questions that have misleading or completely wrong answers. It's not to say that any of us are perfect and or know it all... but I can say one thing, if I am not 100% sure, I seek the answer through the proper channels. Those channels would be my underwriters or the guidelines/manuals for such programs and or mortgage questions. With the mortgage industry changing more than ever before, one really needs to stay on top of this information.

Who are we?

Mortgage Myth Busters is a select group of mortgage professionals driven to share pertinent, accurate and relevant information. This information is provided to help both consumers and anyone in the real estate and mortgage industry. We are experienced, licensed loan officers from various companies across the country with over one hundred years of combined mortgage experience. Our purpose is to educate and assist the consumer in navigating the often confusing process of obtaining financing. It is our goal to dispel the confusion, myths, and lies that surround the real estate and mortgage industry.

If you have any types of mortgage questions, either as a realtor or as a consumer, you can ask us here. (click the box above)  ~ Ask a Mortgage Question ~

Special Announcement : We want to Welcome Eleanor Thorne to our group as of late last night. Eleanor is a loan officer in Cary, NC and comes with 20+ years of experience. She also has her D.E. license, which is the delegated underwriter license. We will have a press release later today and a new post on Eleanor by the weekend.

Where can you find a Mortgage Myth Buster?

You can click the logo below which will lead you to our main site. You can also find us @ :

Facebook Fan Page - Mortgage Myth Busters

Twitter -  Mortgage Myth Busters

LinkedIn mortgage questions group - Mortgage Questions & Discussion group