The following article appeared on Housing Watch by Alyssa Kalz, January 25, 2010.  After sending it email to many of my friends I got such feedback that I wanted to also add this for comment.

                                     THE NEW MORTGAGE REVOLUTION:  WALK AWAY!!! 

 

Big real estate developers do it all the time - like yesterday, when the owner of New York City's Stuyvesant Town complex decided to stop paying its $3 billion mortgage. So why are you still writing a check every month on that mortgage that's much bigger than your home is actually worth?

Good question, University of Chicago economist Richard Thaler says. Thaler tells New York Times readers that it's not just alright to walk away from one's over-sized mortgage -- it may actually be a moral imperative. (An earlier Times article, by Roger Lowenstein, said much the same thing.) After all, lenders had no second thoughts about lending more than many borrowers could afford or than the homes might actually be worth. It's just not fair to expect borrowers to follow rules that the lenders don't.

But why stop there? Some commentators are now calling on borrowers to start a mass mortgage strike.

"Remember burning draft cards? Burn your mortgage," the blog DailyKos told readers recently:

"The real risk to the banks and investors is that the people in those homes might just decide to walk away. And that's what we must do. Doesn't have to be everybody, of course; but anyone who finds themselves seriously underwater with no hope of ever recouping their investment....just walk away Renee. Morality has nothing to do with it. You are a cog in the wheel of a machine that is killing this country and if you remain a cog you enable it. Remove your cog and the machine will not keep running. Remove millions of cogs and the machine gets replaced."

Now the call for a borrowers' revolt is being joined by folks who know an opportunity when they see it: real estate agents. Over the past month, agents have been rushing to declare 2010 "the year of the strategic default." Here's Connecticut Realtor Minna Reid:

Loan modifications do not address the real problem of heavy negative equity and are sure to fail most of the time. Even if the homeowner lowers their current payment they are left more trapped than ever. There will be no quick recovery this time. Years later when there is a need to HAVE TO move, the original problem of being upside down remains and the modified homeowner is left to short sell or foreclose once again.

Isn't it better to just cut the losses upfront ?

I know many will consider strategic default wrong or immoral, but as for me, I stopped passing judgment long ago.

Reid is far from the only real estate agent using mass revolt against the banks as a sales strategy. San Diego broker Bob Schwartz asks, "How many homeowners will suddenly wake up to the fact that their home is now worth tens of thousands of dollars less than their mortgage balance? Only the naive will believe that their San Diego home's value will bounce back anytime soon.... Defaulting "strategically" can entice more walk-aways by buying all the major items they may need in the near future, such as a car or even a house, right before they take a hike. As long as you stay current with other mortgage lenders, one could potentially have a good credit standing in 2 years after the walk-away."

And Phoenix agent Bob Stahl joins the chorus, assuring borrowers that a strategic default followed by a short sale won't hurt their ability to get a mortgage in the future.

Many of the agents calling for a mass movement of strategic defaulters specialize in short sales -- selling a home for less than the mortgage on it – something that mortgage servicers will often only consider once a borrower has begun to miss payments. It's ironic that after years of helping push prices up to maximize commissions, real estate agents are now pushing borrowers to dump their properties in short sales, so they can jump in and close a deal.

Still, they may be on to something.

Calling for mass strategic defaults is the equivalent of shouting "fire" in a crowded theater, prompting a stampede to the exits, and stampedes can leave a lot of people hurt – in this case, all the homeowners who live next door to the borrowers who stop paying, and suddenly see their property values plummet.

But there's also potential for millions of borrowers to gain if strategic defaults occur on a large scale. Nearly one in four borrowers nationally owes at least 20 percent more on mortgages than their home is actually worth, and in Nevada and Arionza it's more than half. The Wall Street Journal reports that about 1 million borrowers deliberately decided to stop paying their mortgages in 2009, or one in four of all mortgage defaults. When a critical mass of borrowers stops paying, it makes lenders – really, we're talking about the investors in mortgage-backed securities -- a whole lot more receptive to the idea of lowering the principal borrowers owe on their mortgages to persuade them that it's worth continuing to pay.

"People are spending far more on mortgage and ownership costs than they would to rent the same unit and there is almost no realistic prospect that there will ever get equity in many of these homes," says Dean Baker, co-director of the Center for Economic and Policy Research and author of the book False Profits: Recovering From the Bubble Economy. "Walking away will save them money and also free up money for consumption, thereby providing a boost to the economy. Banks will likely be far more forgiving of people who default in this crisis than they would ordinarily be. This isn't altruism -- they want to be able to make loans."

Check out the link below for other Articles!

http://www.housingwatch.com

 

Katie Creek
kdsrealestate@yahoo.com
 

 

        

I'LL ALWAYS BE DADS SUNSHINE!


I received the following from one of the Title Companies that I use here in FLorida.  I thought that you may be interested in the following if you are considering a Short Sale.  This just may help you relocate!

Government Announces Short Sales Guidelines
The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

Scheduled to launch in April 2010, the Home Affordable Foreclosure Alternatives Program (HAFA) will offer up to $3,500 in incentive payments to qualified borrowers, servicers and investors who complete short sale transactions for properties with loans on the verge of foreclosure.

HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.

 

To qualify under these new guidelines:

• The property must be the home owner’s principal residence.
• The home owner must be delinquent on the mortgage or close to defaulting.
• The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
• The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

The following incentives will apply:

 

·         The borrowers will receive $1,500 from the government for relocation expenses.

·         The mortgage-servicing companies will receive a $1,000 from the government to cover administration and processing costs.

·         Investors who hold the first mortgage will receive up to $1,000.00 from the government for allowing the second-mortgage holders to receive up to $3,000.00 of the sales proceeds in exchange for releasing their liens.

In total, each transaction under HAFA will cost the Treasury up to $3,500 in incentive payments.

 

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Courtesy of Keystone Title
Port Richey, FL

Katie Creek
727-415-4669
www.RealEstateHomesFlorida.com

 

        

I'LL ALWAYS BE DADS SUNSHINE!

As the economy continues to get blasted from all ends, mainstream Americans are seeing their homes value continue to plummet.  Recent reports show that more than 23% of people that have a mortgage on their property owe more than it is worth.   Another  2.3 million that are within 5 % of being underwater (meaning, owing more than their home is worth) bringing the total to approximately 28 percent. 

Being a Realtor in these tough times is not the easiest thing in the world to do.  Owners can’t get out of their homes to take on another job, or afford to retire to another location if they would like.  Their previous “nest egg” has seen much better days, and walking away from a home may not be the best option for them.  Although, I have to admit, I have seen it done.

With all the Federal Programs out there to help people now, you would think that the lenders would be willing to help out these people however; only about one in five actually are getting help from the lenders.  It seems that they would prefer to foreclose on a property than to try and help the owners stay in their homes.  So, let’s take a look at the picture from my point of view.

Lender not willing to help owners,
Lender then proceeds with the Foreclosure Process
Lender hires an attorney (not cheap)  
Attorney files all paperwork
Now were in the court house stage, where this could set for a year or so.
Meanwhile, owner is living on or in the property without paying anything to lender.
Short Sale may be an option.   However, owner may not have cash to bring to closing table.
People then move, via Short Sale or Foreclosure.

Have you any idea what the price tag of this maybe?  Needless to say if the house has been abandoned, repairs may need to be done, lawn needs to be mowed (extra expense as county will mow) or anything extra that may need to be done could fall back on the lender.  However, most sales are “as is” therefore, you better know what you’re buying.

In the meantime, the lender has lost a year or so worth of payments, had to pay an attorney, perhaps even a Realtor.  I have said it before and I’ll say it again.  If a lender can afford to give someone access to a home for 4% interest to start, do you think that this lender is making money?  Of course they are!  Just not as much as they would like to up front, but plan on it, on the back end. 

With that being said, while the Lenders are giving themselves HUGE BONUSES  you, the average, hard working middle class American take the hit for more taxation and more control by the Government!  

Wall Street and the Players of bigger Government have proven to us repetitiously, that they cannot restraint themselves when it comes to the American Taxpayer Monies.  This being said, if we don’t soon find ourselves someone with real common sense when it comes to matters such as these we may want to consider what our next lifestyle may be.  Perhaps a commune? 

UNDERWATER MORTGAGES:

California:  35 Percent
Michigan:   37 Percent
Florida:      45 Percent
Arizona:     48 Percent
Nevada:     65 Percent

Katie Creek
www.RealEstateHomesFlorida.com

        

I'LL ALWAYS BE DAD'S SUNSHINE

       Last week I had the opportunity to go on a listing appointment that was referred to me by a Mortgage Broker that does Reverse Mortgages.  Little did I know what I was stepping into as I ran the door bell and waited for her approach.  While waiting I had the chance to jot down some notes on what needs to be done on the outside to make it look more presentable.  When, the door opened I almost passed out from the stench that was coming from the inside of this home.  As I introduced myself I knew that this was going to be a challenge.

Taking a deep breath of fresh air before entering I slowly walked in.  My shoes were now sticking to the floor as I approached the dining room area and as I walked I would literally have to pull my shoes so they wouldn't stay behind!

I sat at the dining room table where I could see the garbage piled up on the lanai.  While I'm sitting there I was thinking, "man what a mess"!  How am I ever going to sell this place in the condition it's in and with this sweet lady not realizing that this will need to be cleaned up from top to bottom!

As I sat there talking to her she had told me that she wanted me to "tell her like it is" Fortunately or maybe unfortunately for her I am well known for this and this is probably why the property got referred to me in the first place.  With my ASP (Accredited Staging Professional) degree behind me and without trying to take a deep breath at this time I started my unique gift of "telling it like it is"!

"First", I said to her "we need to get this place cleaned up", "the carpeting needs to be completely pulled out", "this large piece of furniture has to go, as it takes up over one third of the living area"!  "Then, we need to get someone in here that will take care of all the trash, by trash I mean everything on the lanai that is not needed, this includes any magazines, books, papers, etc. that is not really needed by you."  But then the bombshell came.  "But," she says to me, "I don't have any money".

I am well aware that many people in today's world are in dire circumstances so I asked about the home and how long she had lived there.  She informed me that she owned the home outright, so without a second thought I said, "Let's get and equity line of credit then."  Then the second bombshell went off when she said, "I can't, my credit isn't any good."  So, now I'm thinking that this will be more difficult than I first thought as not only is she behind in her HOA dues, she can't even get a equity line of credit!

While I was there pondering what I could do to help this lady out I kept thinking "who would help".  I made a few phone calls and started writing some notes for her as a guideline for "things to do".  I stayed with her and talked with her for over 2 hours.  During this conversation I had told her that I can't get her the best and highest price for her home because of the stench and condition of the home.  That I felt even if a minor things were changed she could reap a better return on her investment.

When I left that woman she had a plan, a mission that she was on and I knew that in a matter of weeks, she could have the place presentable enough that it would sell without having to "give it away"!  She had made plans to move with her daughter in Virginia and I felt better knowing that she was going somewhere where she could get some quality care.

Needless to say on the way home, I couldn't stand the way I smelt, the smell was everywhere, in my hair, on my feet, on the suit I had been wearing.  As I pulled into the driveway of my home I sat and thanked God that I maybe I would be able to help this woman.  To make her last years better for her in some respect.  Of course, the very next thing on my adjenda was quick get out of these clothes, out of the smell and stench that had now appeared on my person.  I knew that no matter what I did, a shower and washing machine was the only way that I could get rid of the profuse odor that lurked around me.

Things didn't turn out quite the way we thought though.  I got a call from my Mortgage Broker friend, he informed me that the daughter couldn't accept mom at this time.  My heart sank, not for me, but for this poor woman as I know that seeing and being with her Granddaughter was the up-most importance to her.

Long story short, my Mortgage Broker friend is doing a reverse mortgage for her and she will be staying in the home.  However, sometimes I feel that I am awfully rough on people but with that being said I have vowed stay committed to: "Telling it like it is".

I AM LOOKING FOR FEEDBACK FROM YOU ON THIS STORY.  DO YOU THINK THAT I AM RIGHT OR WRONG WHEN IT COMES TO THIS?

Katie Creek
727-415-4669
www.FL-WaterFrontProperty.com

        

  AS I added this picture to this site I couldn't help but reflect at a much worse time in our History, a time when we were at war still, with many countries.   We haven't changed much, have we?   I wondered how many Veterans had looked out over the sunset to see flashes of grenades, smoke filled air and the stench of war in General.

Although, I am a female and have never experience war, one of my classmates did, and I can't help but think of him today and every Veterans Day.  You see, I grew up in a little town, where everyone knew everyone, and so it was.  My classmate joined the service before his Graduation Day in High School.  He left for the Service a few days later.  Before School started the next year he was already back home, in our little town, in his grave.

Times haven't changed much, as our children still go off to war, not only in other countries but in our own it seems.  The morels that I grew up with in our country are decaying like the graves of these Soldiers that fought so hard to keep our American values and to keep us free.   No one wants to pray, when prayer is what got so many of us through the tough times.  History tells us that our forefathers prayed, and prayed hard for what was right. 

I can see them at the town meeting, but before hand, bowing their heads to say, God help us to lead everyone in the right direction.  I have to pause at this and wonder, how many people in our Government today take that extra few minutes to bow their head and say to our Lord, Please Father in Heaven, help me to lead this country in the right direction.
I wonder this, along with so many other things about todays America.

Today though, I want to take just a minute to Thank Our Veterans for what they have done and have been through.  Many came back to unrest in the U.S.  Being jeered and spit at was not an option for them, but they did what they thought was right, just like so many of us do.  I just want you to know, that I APPRECIATE YOU!  That no matter what, I care about you and I am proud of that fact that you alone, along with many other stood up to Fight for what you thought was right.

SO THANK YOU MR. & MS. VETERAN, THANK YOU FOR YOUR SERVICE TO OUR COUNTRY.  MAY IT ALWAYS STAND IN FAITH, IN FREEDOM AND IN RIGHTNESSONEOUS!        OUR ONE NATION UNDER GOD, INDIVISUAL.


AMEN.

Katie Creek
www.FL-WaterFrontProperty.com
727-415-4669

        

<< MORE >>

  Well, we have all the reality shows on now that tells how it was growing up being Italian, or growing up doing something but I have yet to see a TV program that states "GROWING UP AMERICAN".  Let me tell you, no matter where your from originally, if you're here, and unless your an alien, you are an American.  But, I don't know if people understand the concept of that.

When our forefathers came to this country there were many  obstacles' to be overcome. They were in a new land, that would need new laws, there were new people.  Would they be our friends, or  our enemies?  Building had to be built, small towns sprang up and businesses had to flourish to give people not only jobs, but hope.

I don't take growing up American lightly.  I was raised with a stern hand and a fear of "GOD"  that if you did anything wrong he would come down and "GET YOU".  Unfortunately, that has all gone away today along with the honesty and integrity that made this country GREAT.  Yet, we have many things to be thankful for.

Our forefathers made us understand that nothing "WOULD BE HANDED" to us and that we would have to work hard.  Land was available for you to plow, for you to find you're way in this new country.  That if you WORKED HARD, no matter what you did in life "YOU WOULD SUCCEED". 

Todays world is completely different than that, and I don't quite know when the turn around came.  But I do know one thing.  I am much like my parents were, in the fact that they had a stern hand I find myself also that way.  I would never allow my children to take something that they could work for and earn on their own.  I'm not sure that those values exist anymore but I do pray to God everyday that he mends this country from the deceive and lack of honesty that pledges our country today. 

Maybe it's time to take a good look at ourselves America, do you like what you're seeing?  Or am I the only one that feels we're on the wrong path which could be our demise, and the end of what our forefathers fought so hard for?

Katie
www.FL-WaterFrontProperty.com

        

I'll always be Dad's SunShine


JUST DOING WHAT'S RIGHT
FOR THE AMERICAN PEOPLE


CONSUMER ALERT!!! 
AVOID THIS CHINESE DRYWALL SCAM

At least two types of fraudulent activity involving the defective drywall have been reported to the Florida Attorney General Bill McCollum’s Office by individuals in the building industry: bogus tests to determine the presence of the product and quick cure remedies that falsely claim to remove the corrosive properties of the drywall.
 
According to reports, defective Chinese drywall in a home causes black corrosion to appear on copper air conditioner coils and non-insulated copper wiring. If the air conditioner coils are corroded black, there is a strong likelihood that defective imported drywall is present in the home. Most homes that contain defective imported drywall were built between 2004 and 2008. Other homes probably do not have Chinese drywall.
 
McCollum says there are two easy ways to find out if defective Chinese drywall was used in a home: Ask the homebuilder or have a qualified professional air conditioner technician conduct a visual inspection.
However, the presence of defective imported drywall cannot be determined by “testing” the air in the home. Additionally, if the toxic version of drywall is found during a visual inspection, it cannot be remedied with a spray or an ozone generator. McCollum says those products can actually make the problem worse.
 
The Florida Attorney General’s Office has had the following specific complaints so far:
 
 • Sale of bogus test kits. These can be expensive, often costing thousands of dollars, and are generally ineffective. The presence of defective imported drywall can only be determined through visual inspection.
 
• Solicited home inspections costing thousands of dollars by “experts” with no apparent qualification. Homeowners should beware of cold calls and door-to-door solicitors.
 
• Sale of sprays and applications that claim to miraculously cure the corrosion problem. Not only are these products ineffective, but moisture could accelerate the corrosion.
 
• Sale of ozone generators. Ozone will actually increase the chemical reaction between the drywall and copper and accelerate corrosion.
 
Consumers can file a complaint about scams by calling the Attorney General’s fraud hotline at (866) 966-7226 or by filing a complaint online at http://myfloridalegal.com.
© 2009 FLORIDA ASSOCIATION OF REALTORS® 

    Katie Creek
http://www.FL-WaterFrontProperty.com
727-415-4669

        

I'LL ALWAYS BE DAD'S SUNSHINE

CALLING MYSELF THE
        "FEMALE"
RENEGADE REALTOR

                                             STILL FIGHTING FOR THE "AMERICAN PEOPLE"

Here we go again with the lending institution and right now I am so upset with the lenders of these institutions that I want you all to be aware of what just has happened to me so that it doesn't happen to you, unless of course it already has.

Buyer on said property made an offer on a short sale.  No big deal this is done every day right.  Right, however the lender chose another offer over hers so, the hunt for that perfect property was on again.  Enter my listing, not a short sale, all the paperwork done and contract in place.  Now the buyer is of course going through the loan process.  It has now been 10 weeks.  Yup, I said 10 weeks, and guess what the hold up is, the lender said that she had been denied a loan for this short sale.  What???  How can this be when she never went to a lender, because the lender chose another offer?  Beats me!!!  What does submitting a loan with a pre-approval have to do with an actual loan?  And, since her contract was nixed, why would she be jeopardized?

So, if this is happening to her, I am sure that it is happening to thousands of people out there that are requesting a loan through FHA on property.  Even though they may have submitted an offer on a short sale, they may be turned down because they SUBMITTED THE OFFER!!!!  HEADS UP GUYS....we need to be making these lenders RESPONSIBLE for what they are doing.  Or, is this just another gimmick not to lend money to a good buyer?  Hummm, good question isn't it?

Katie
www.FL-WaterFrontProperty.com

 

        

I'LL ALWAYS BE DAD'S SUNSHINE!
     Well, it's me again and I just read an article that got my hair standing up on the back of my neck and right now my eyes are red and bloodshot from this article and I began to realize once again that our Government never looks at the big picture but passes things on a whim without giving it much thought.  This is the article below:


                 Despite Rising Unemployment, Banks Continue to Replace Americans with H-1B Workers Amid last week's announcement that the nationwide unemployment rate has now climbed to 8.5% (Bureau of Labor Statistics), immigration experts and media reports have highlighted how banks who received funding from last year's $700 billion federal bank bailout are utilizing the H-1B visa program to replace American workers with cheap foreign labor. This discrimination against American citizens in favor of foreign workers continues despite legislation aimed to prevent this.   In February, Senators Bernie Sanders (I-VT) and Chuck Grassley (R-IA) successfully attached the "Employ American Workers Act" (EAWA) to the stimulus bill.


I had to figure out what and H-1B worker was and what do you know, and here it is:  The H-1B is a nonimmigrant classification used by an alien who will be employed temporarily in a specialty occupation or as a fashion model of distinguished merit and ability.

Now, I want you to know that I don't have a problem with the fact that someone want to come to America and do the right thing becoming a Citizen.   However, at a time when we are at 8.5% unemployment, why would we allow this to happen.  In fact, I think it would be fair to say that we need to open this hiring up for all Americans, Citizens and immigrants that are "TRUELY" wanting to become American Citizens.

SO, here's my question MR. PRESIDENT, If we are giving OUR TAXPAYER MONEY to BAILOUT all these institutions.  Don't you think that there should be something in these bills that also states YOU MUST HIRE AMERICAN WORKERS?  After all, these are the people that are bailing you out.  There the ones that have giving you the money to continue to do business in the UNITED STATES OF AMERICA.  There the ones that are now scraping to get along and would LOVE to have a job, no matter what!!! 

I have always told you that I want whats right for the American People, I will fight for you and these articles may fall on deaf ears but I will tell you.  Without someone in the Senate or in Congress that will actually read and (a new concept) THINK about what these bills will do prior to these happening, we will never get ahead.

I don't know about you, but where in the heck did COMMON SENSE GO????  Or, are you like me and think that NO ONE CARES anymore?  Well, maybe I do, and that's exactly why I write to inform you, MR. & MRS. AMERICA. 

Katie Creek
www.dadsunshine.com  

        

I'LL ALWAYS BE DADS SUNSHINE!

   Let me tell you about the art, if you want to call it that of selling a home, it is definitely NOT smelling your home!  For instance, last Saturday I had the chance to work with a couple looking for their first home.  It was an exciting time for them as I had been sending them properties for a week so the first property was rather important.

Unfortunately, I got a little lost, (boy, do I need a Tom Tom) but they were kind enough to rescue me and the search for that perfect home was on.  Pulling up to the driveway my heart sunk into my stomach and as I approached the home, it even got worse.  Little did I know what was lying ahead of this first visit. 

We made all the necessary connections, I introduced myself and they did so in turn.  As we walked up to the home we notice cracks in the stucco, not normal cracks, minor and major.  A dead give away that maybe there were some settling issues here!  But alas, we will enter into the home and see what it is like.

IF I COULD TAKE A PICTURE, it wouldn't do it justice!!!  Upon entry you got blown away by the stench of SMOKE.  Yup, it was like there had been a smoke party in the home and someone didn't know that they should maybe open a window!!!  Oh, but it was not just the smoke, there was also a cat!  Now, anyone that owns a cat knows that you must take care of this on a regular basis.  I can't tell you if these people know that or not but, the selling agent sure should be letting them know.

But, that was not the end of it!  OH NO....every shade in the house was pulled down, so there was absolutely NO LIGHT in the house.  We made it as far as the living room area and all of us turned for the door and headed to the outside.  We decided that this was NOT the home for them.  Imagine that!!

A few days later I got an automatic email from the listing agent asking me to fill out this form about the home and what I thought about it, now I could have sweet talked him and just told him my people were not interested but no....NOT ME!  What do you think I did?  Of course I did, I told him the condition of the home, I told him about the SMELL and told him, and my last words to him were, "Good luck selling this one!"

Question is, do you think this is really going to change the sellers idea of selling a home?

Let me know what you think!

Katie
727-415-4669
www.FL-WaterFrontProperty.com