Foreclosures by many lenders temporarily halted!

The market is getting thrown another wrinkle – but it’s only temporary! Watch and learn!

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Hey if you are looking as a way to set yourself apart as an agent – then watch this video! Your attention to this video can give your buyers an opportunity to get in for a low down payment (to even $0 down!).

Mike Marmion
619-337-3230

Click on a video below to watch it:

The internet is amazing! Are you taking advantage of it!

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Here is a great article I saw that I thought I would share with you – if you were on the fence about buying a home, this should give you the courage to jump over!

10 Reasons To Buy a Home

Enough with the doom and gloom about homeownership. Brett Arends explains why owning a home is a good thing.

Sure, maybe there’s more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” it’s time to say: Enough is enough. This is what “capitulation” looks like. Everyone has given up.

The Sept. 6 cover of Time magazine: This is what capitulation looks like.

After all, at the peak of the bubble five years ago, Time had a different take. “Home Sweet Home,” declared its cover then, as it celebrated the boom and asked: “Will your house make you rich?”

But it’s not enough just to be contrarian. So here are 10 reasons why it’s good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer’s market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We’re four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor’s Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it’s mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You’ll never catch the bottom. It doesn’t really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

 

Brett Arends discusses why he thinks now is a particularly good time to buy a home.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What’s not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won’t see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You’ll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you’ll get a tax break on capital gains–if any–when you sell. Sure, you’ll need to do your math. You’ll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

The June 13, 2005 cover of Time.

4. It’ll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You’ll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. “You can tell the ones that have been bought,” said my local guide. “They’ve painted the front door. It’s the first thing people do when they buy.” It was a small sign that said something big.

5. You’ll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you’re better off buying.

6. It offers some inflation protection. No, it’s not perfect. But studies by Professor Karl “Chip” Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That’s valuable inflation insurance, especially if you’re young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

View Full Image

Associated Press

A house for sale in Shelby, Ohio.

7. It’s risk capital. No, your home isn’t the stock market and you shouldn’t view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It’s forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won’t. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn’t a cost. You’re just paying yourself by building equity. As a forced monthly saving, it’s a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That’s below last year’s peak, but well above typical levels, and enough for about a year’s worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the “glut” simply won’t matter: It’s concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won’t have any long-term impact on housing supply in your town.

I’d love to hear your thoughts – let me know if you agree or disagree.

MIke Marmion

If you’ve been following my last couple of posts, I’ve been talking about creating a predictable business and income (hey I’m talking about predictable AND making money, NOT predictable and having no income!).

The very first thing that you need to do is have regular, routine conversations with the people you know and give them the opportunity to work with you or refer people to you. Without that most agents are dead in the water, since 70-80% of all the transactions done are as a result of referral or a personal relationship with the agent.

This video is about developing a niche that delivers business to you on a regular basis. Most agents try to do "too many things" and as a result never become an expert at anything. Instead of trying to do "everything", an agent would be much better off doing one thing extremely well. The benefit for the agent is taking the pressure off the them to learn everthing, spending money on projects that don’t return results, and countless hours on projects that quite frankly they aren’t capable of converting. For example, an agent who goes to see 2 FSBOS per year doesn’t stand a chance against someone who sees 1 a day. The person who sees 1 per day has built their skill set and probably has a system and realizes that it’s a numbers game – so if something doesn’t work out perfect, they realize they just need to show up the next day and try again. The person who sees only 2 FSBOs "NEEDS" the listing or they consider their efforts a failure – and then they feel like a failure, and "that nothing works so why bother".

So watch this video and start thinking about, "What niche would I like to specialize in?"

Please share on this blog any niches that you see working out there right now – the more we share, the faster we all fix our market and the economy!

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As a Real Estate Agent there are many things we need to do – master a listing presentation, a buyers presentation and learn how to overcome objections – but nothing and I mean nothing exceeds the importance of marketing to the people you know! 70-80% of the transactions industry wide come from our Sphere of Influence – either the people know you or were referred to you by someone who does.
So look at how you are spending your time, effort and money and make sure it is on the people who will do business with you – IF YOU KEEP IN TOUCH!

Click on a video below to watch it:

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Being a real estate agent can be exhausting – we are the “the CEO and Janitor and front desk person all in one”. The challenge with this is getting it all done. The problem with failing to meet the challenge is an agent can go broke.

Most agents can’t afford an employee – but what can be tremendously helpful is part time help. A great place to find part time help with no string sattached is at a site on the web called ELance.com On ELance you can find help with alot of the things we agents struggle with – like marketing design, setting up a database and organization of ideas into a finished product to promote our business.

Here is a great article I found on the web that explains how to use ELance to find good help. Let me know what your results have been (or if I am introducing the idea to you how it goes). I have used the service a few times and I’ve found it tremendously helpful. Here’s the article:

The point of outsourcing is not to necessarily find someone to do the task better than you or even cheaper – it’s to offload the majority of your daily required work so that you can focus on the core portion of your business where you add unique value. Think of it as the 80/20 rule. If 80% of the results come from 20% of the effort, then spend all your time on that high yielding 20% and outsource the rest.

If you are hesitant because you could do it cheaper, then you likely are not valuing your time appropriately. Give yourself some credit. Your hours are worth a great deal, especially as an entrepreneur or businessman.

Over my past four years, I’ve outsourced more business jobs then I thought possible and more personal tasks than some would consider appropriate… and I cannot imagine doing it any other way – and not to mention, it’s been a blast. Sound intriguing?

Here are my 12 tips for outsourcing success:
 

1. Consider this an investment. Even if you have nothing to outsource, make something up. This is an investment in your education at the very least and the start of a whole new way of doing business at the best. Set aside a few hundred dollars with no expectation of a return. It’s your tuition. The return will be gained through your experience.
    
2. Do your due diligence. Thoroughly review an Elancer’s profile, portfolio, and feedback. A thorough profile should show previous jobs, examples of work and client ratings to see if they’ve performed jobs of the same size and scope that match your interest.
    
3. Test their communication skills. Clear communication is a must for any project. Before hiring, be sure to exchange a few messages through pre-bids to not only see how quickly they respond but also to see how much they know about the particular job and how well they can communicate with you. Also, hop on a Skype call or utilize the Elance Call feature if phone work will be involved.
    
4. Set office hours. This is especially important if you’re in very different time zones. Set a few hours each business day where you both agree to be available if questions come up. They certainly will appreciate it as well and at times you’ll want live discussion instead of waiting overnight for an email response.
    
5. Start with a few candidates and give them a test project. Don’t pick one person right from the start – kick the tires on a few. There’s only one way to see if they do quality work. Give the same small project to 3-5 people or teams and see how they compare. I needed a logo for my investment business a couple years ago and I was able to get 5 teams to submit a rough draft based on my creative brief. I chose my favorite guy, who happened to be in Pakistan, and he created our entire corporate identity (which we still happily use).
    
6. Hire for specific tasks. Remember, there are so many super skilled people out there. That being said, keep in mind that it’s much better to have a few specialized people on your team rather than one really general one. I have my graphics guy in Pakistan, a few in India who do personal tasks, SEO and WordPress, and someone down the street who does my web design. When you hire on a task by task hourly basis, you have the luxury of specializing.
    
7. Set clear deadlines and project descriptions. One of the best byproducts of outsourcing is it teaches you how to clearly define a project, a step that often gets missed when we do our own work. Without a clear project scope, outsourcing is futile. Also, properly defining a job at the beginning gives it a better chance of success. Then, when you put time parameters on it, it’s all the more efficient. Always give a deadline and maximum time you’d like them to spend on it. The closer the deadline and fewer projects assigned at once the better. Provide clear direction.
    
8. Be sure they understand before they begin. Ask for them to paraphrase the task and describe their approach before beginning. There is certainly more room for mis-communication when you don’t see someone and often don’t even talk to them. Clear and concrete tasks are the insurance against major miss queues.
    
9. Don’t simply shop by price. Rates range from $5/hr to $250+ an hour. Resist the urge to go with the lower cost option just for the novelty of the savings. It’s possible they will be your best option, but test that assumption by trying a few price ranges. If the cheaper option causes more frustration and time spent, then it may be time to increase your budget. Personally, I’ve had success and failure with price ranges from $5/hr up to $50/hr.
    
10. If it takes longer to write up the project than to do it yourself, don’t outsource it. When you get started, you’ll want to outsource everything and at first maybe you will, but as this becomes a regular part of your business and personal operations, be practical. If it’s not saving you time then do it yourself or don’t do it at all.
     
11. Outsourcing does not have to mean going international. Try a few countries, including your own. I’ve found great guys in India and great guys in my backyard of San Francisco. It all depends on the scope of the project. Elance even allows you to search geographically if for instance you want someone who you can see face-to-face. Their tools are super easy to use and give you a great shot at finding just the right fit.
     
12. Expect snafus. Things will no doubt go wrong as you are learning the ropes. Do the above and you’ll likely make your mistakes early on and with little time and capital investment at risk. Remember every mistake is a lesson. Only let it happen once.
     

When you clear your schedule of the mundane, your mind has time to tackle the ideas that will allow your business to reach its full potential. Here are just a few possible tasks you can outsource today (also check out 100 Projects You Can Elance here) :
 

• web research
• customer service
• accounting
• web and blog design
• blog and copy writing
• blog comment moderation
• locate best courses in your area for various subjects
• voice transcription
• SEO, SEM and Social Media Marketing
• personal or administrative tasks
• travel plans
• having an out-of-production product or garment made
• locating the perfect gift on Valentine’s Day
   

The list is about as long as your imagination can wander. Go out and have fun with this. Once you start, it will be impossible not to. The leverage on your time, effort and dollars is such that none of us can afford to miss it. If you need more motivation, realize your competitors are likely already doing the above.

As a bonus, there’s something about knowing work is getting done while you sleep that is incredibly soothing and awesomely efficient. If you have questions, I’m happy to help. Block out an hour on your schedule and make an investment in your future productivity both personally and professionally. It will likely be one of your best returns to date.

About the Author:
Scott Dinsmore is a value investor and personal development and productivity guru. His blog Reading For Your Success, which was built by a team of elancers, is dedicated to all topics relating to us experiencing life and career success, on our own terms, through “action-based reading”. Visit his blog and subscribe here to read Scott’s future articles.

Here are highlights from an article I read on CNN. People who lost their home due to job loss may be in decent shape after all – contact me at mmarmion@prusd.com and I can set you up with a loan officer so you can se where you stand – here’s the article:

After foreclosure: How long until you can buy again?
Financing a home after foreclosure is possible for most homeowners.  Those who default on their mortgages due to economic hardships, such as job loss, may receive approval for another mortgage in as little as two years, while it may take more than seven years for strategic defaulters to be approved.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Lenders utilize several methods in determining whether to grant mortgages, including the amount of money borrowers have saved; employment histories; and payment history.
• According to the chief economist with the Mortgage Bankers Association, lenders may be more willing to finance a mortgage for a borrower who defaulted on their mortgage as a result of factors beyond their control.
• Some homeowners who strategically default—intentionally not meet their mortgage obligations although they have the financial means to do so—assume they can raise their FICO scores by paying their others bills on time.  However, most future loan underwriters will scrutinize their records very closely, and if they determine the borrower strategically defaulted on their previous mortgage, the repaired credit score will not overshadow the walkaway.
• Although not impossible for strategic defaulters to finance another home purchase, it likely will be more difficult.  Lenders may ask for down payments of 30 percent or more to provide sufficient collateral to enable the bank to recoup most of its money in a foreclosure.  These borrowers also may be charged higher interest rates, even above the levels other borrowers with similar credit scores would receive.

Here is a link to the whole article if you car to read more click here.

Mike Marmion

Prudential CA Realty

Branch Manager

619-337-3230    direct

Posted via email from San Diego East County Real Estate News

For a 5 or 6 year period, getting a loan was as simple as making sure your pen had ink in it! For self employed people this was a blessing – some years they had great income, others not so great – but that didn’t matter because optimism that you could make the payment was all you really needed. Well in the era of "everyone gets a loan" the scrutiny of the buyer was minimal and the the qualifying was a breeze.

As a Branch Manager of the 3rd most successful real estate company in the United States, Prudential CA Realty I am seeing self employed buyers come forward to buy a home with the hope or illusion that the system for buying a home will be the same. For the most part it is – except for the qualifying. You see "he who has the gold makes the rules" – and that person is the bank.

Read this article I found in the NY Times from about a week agout that spells it out in more detail:

"MOST borrowers are facing a much tougher mortgage environment than a few years ago, but for those who are self-employed or own small businesses, maneuvering through a loan application can be even more arduous.

Before 2008 these borrowers, many of whom have difficulty documenting their income, often used what are known as stated-income loans. Lenders focused on credit histories and earnings estimates, circumventing the need for pay stubs or W-2s.

But during the mortgage crisis, stated-income loans became known as “liar’s loans,” because some borrowers falsely inflated their incomes, and qualified for more than they could afford.

Today, stated-income loans have nearly disappeared. Those still available through regional lenders like Hudson City Savings Bank come at a cost: interest rates around a quarter of a percentage point higher than conventional loans and down payments of at least 30 percent.

The self-employed borrower’s only choice, mortgage brokers say, is to submit two years’ tax returns and hope that they qualify for a conventional loan.

That would not be a problem, the brokers said, if all self-employed people filled out their tax returns conservatively. But in this economic climate, the self-employed have been more likely to lighten their tax liabilities by taking business deductions, thereby lowering their official income levels, as well as the likelihood of qualifying for a loan.

“You have to be more conservative about how you claim your deductions, or how you approach unnecessary purchases for the business,” said Robert Duquette, the president of the New York Association of Mortgage Brokers.

Mr. Duquette says that self-employed borrowers will have no trouble qualifying for loans if they have significant cash, as well as credit scores of at least 700, and stable and significant profit for the previous two years.

But many small-business owners, hit by the recession, are showing losses on their income tax statements.

“Of course, a borrower can make an argument for extenuating circumstances, like reserve duty for a few months, or a temporary hospitalization,” said Regina Mincey-Garlin, the president of RCG Mortgage Solutions in Montclair, N.J.

Mr. Duquette of the New York Mortgage Brokers Association said the mortgage crisis had hurt small-business owners more than others. “Everyone who’s getting income from places other than salary and wages is getting hit harder than everyone else,” he said, “because they’re being scrutinized more carefully.”

And those who have only recently started a business — perhaps after a layoff — may face even greater difficulties, he added. During the recession, many companies laid off workers, hiring them back on a contractual basis. Because these people have no long-term history of stable earnings, Mr. Duquette said, lenders often reject their applications or impose higher rates.

Still, self-employed applicants shouldn’t give up hope, said Debra Killian, the president of Charter Oak Lending, a mortgage broker in Danbury, Conn. Many people wrongly assume they cannot qualify for a loan at all, she said, “but 30 percent of the time — maybe 40 — they’ll qualify. They may be frustrated at all the documentation we ask them to provide, but they can still qualify.”

Small-business owners considering whether to qualify a purchase as a business or personal expense on their taxes, Ms. Killian said, should do the math.

If a business owner shows too little net income to qualify, say, for a $300,000 mortgage at 5 percent, and instead qualifies for a 5.25 percent loan, the monthly payments add up to an extra $5,520, roughly, for the first 10 years of the more expensive loan.

“If you save yourself a few thousand dollars in taxes in a year by taking those extra deductions,” Ms. Killian said, “how much will that cost you on your mortgage, or your ability to even get a loan?” "

So, before you get out there and start looking at homes, do yourself a favor and sit with a loan oficer to see if you qualify. I have 2 top notch guys in my office that will let you know where you stand.

Mike Marmion

Prudential CA Realty

Branch Manager

619-337-3230    direct

Posted via email from San Diego East County Real Estate News

Changes taking effect June 1 are part of Fannie Mae’s ‘loan quality initiative’ to cut down on slipshod underwriting and fraud by borrowers. Here is an article by Kenneth R. Harney, written on May 16 2010:

Reporting from Washington — If you’re thinking about applying for a home mortgage this year, here’s some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing. The complete article can be viewed at:
http://www.latimes.com/business/la-fi-harney-20100516,0,594161.story Visit latimes.com at http://www.latimes.com

Posted via email from San Diego East County Real Estate News

Right now there are literally thousands of people in financial distress because they owe more on their home than it’s worth. Some homeowners think , "Well I’ll just let it go back to the bank." Well if you refinanced I’d think twice or do my homework! Read this article. You may be better off short selling because at least you would "control your loss" – looks like the banks may play hardball:

Mike Marmion

Prudential CA Realty

Branch Manager

619-337-3230    direct

Posted via email from San Diego East County Real Estate News

Boy for a Sunday it took a long time for the Sun to break through! As I reflect on the week and the blessings in my life, I can’t help but feel grateful for living in San Diego where a partly cloudy day seems like a weather tragedy!

Mike Marmion

Prudential CA Realty

Branch Manager

619-337-3230    direct

Posted via email from San Diego East County Real Estate News

According to a joint report by the California Association of REALTORS® and DataQuick, 230 out of 357 cities in California showed an increase in median home prices over a year ago. The state median price was up 20.8% year-over-year, to $301,790. Unsold inventory is now strongly in the seller’s court, with only five months of supply on hand. Homes that sold were on the market a brief 39.2 days, compared to 48.2 days a year ago. Here is a snapshot from a report about San Diego detached home in particular.

I’d love to hear your thoughts!

Mike Marmion

Prudential CA Realty

Branch Manager

619-337-3230    direct

Posted via email from San Diego East County Real Estate News

As the Branch Manager for the East County office for Prudential I hear over and over that there are no homes for buyers – that the clients have been unable to find a property. Well, that looks like it is changing as inventory is starting to rise. I am pretty certain inventory is rising for 2 reasons 1.) It’s Spring and people look to move during Spring and Summer 2.) Since banks are making short selling easier, people are putting their homes on the market. So what’s this mean to you – well if you are a buyer more choices; if you are a seller, don’t wait too long for the dance floor to get too crowded! Get your home on now while demand is high! Take a look at this graph I pulled from one of my 16 page market studies:

I’d love to hear your thoughts!

Posted via email from San Diego East County Real Estate News

Since we in East County are putting together nearly 60% of our transactions using FHA LOans, this is some important information you need to be aware of. I read this article in the LA Times – you can read the "whole thing at the link at the end. Let me know your thoughts – I don’t think it will be "the end of the world" but it will be a change we need to be aware of.

"The low-down payment mortgage landscape is changing.

The Federal Housing Administration, which insures lenders for losses incurred should a borrower not make his payments as promised, is pulling in its horns in an effort to remain solvent in the face of a rising number of delinquencies and foreclosures.

At the same time, though, some of the half a dozen private companies that provide lenders with similar protection against defaults are quietly reentering the market, a market they all but vacated when the housing sector tanked.

"Private mortgage insurers are coming back," says Mark Goldhaber, senior vice president for affordable housing at Genworth Mortgage Insurance in Raleigh, N.C.

Created in 1934, the FHA was intended to open homeownership to those with low and moderate incomes. It has a countercyclical role, too, and often expands its market share when housing hits the doldrums. But last year, the agency insured nearly 30% of all single-family loans, a portion even government officials believe is way too large. A 10% share is considered optimal.

"We have stretched to the limit to help stabilize the housing market," FHA Commissioner David Stevens said in a recent speech in Orlando, Fla. "But we need to stay ahead of any potential problems."

To better manage risk, increase capital reserves and ensure the long-term viability of the FHA insurance program, the agency has taken several steps that will, as Stevens bluntly put it, require "more skin in the game from borrowers."

Beginning this month, down payment requirements on FHA-insured loans have been increased. Although borrowers with credit scores of 580 or above will still be able to make the traditional 3.5% down payment, those with lower scores will need 10% down.

In addition, the upfront mortgage insurance premium has been raised from 1.75% to 2.25%. The premium can be financed as part of the mortgage. But the change nevertheless adds $1,000 to what otherwise would be a $200,000 loan.

The complete article can be viewed at:

http://www.latimes.com/business/la-fi-0425-lew-20100425,0,7739757.story

Mike Marmion

Prudential CA Realty

Branch Manager

619-337-3230    direct

Posted via email from San Diego East County Real Estate News

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