All Forum Posts by: Shari Posey

Am I reading the newspapers correctly that the government will provide financial backing to refinancing loans at 90% of the current appraised value IF the current lienhold agrees to the short payoff and if the homeowner agrees to split any future profits 50-50% with the government?? This actually sounds smart.

I hate the idea of government intervension but I now believe that unless the banks or the government does something for homeowners my prediction is that the majority of homeowners who bought using 100% financing from 2005-2007 will let their homes go and anyone who pulled out a bunch of equity during those same years will let go of their homes. That's a lot of people who still might be considering walking away from their homes!

If Zillow had a large staff that was a mistake in their business plan. They simply take public data and merge it with MLS systems on a computer system. Personally, their Zillowestimates are so bad that they have gotten some very negative press, which I suspect has had an effect on their business model and success or lack of it.

That said, lots of real estate companies are closing or merging as they lose agents. Although our office is getting new agents every day and some of them are doing extremely well. Even in a down market, if you work hard and smart you will succeed.

Hi WIll,
I just called Equity Trust and they are very competitive with Sterling Trust. I may transfer it before my next purchase.
Thanks.

John,
I just called Guidant Financial to check out their services and fees. For me, I only have one property in my IRA so those fees are way too high at $3000-5000 for set up.

I've been disappointed with Sterling Trust recently but it only cost me about $500 to set up for my initial purchase and $300 per year to maintain 2 accounts.

I have only found one lender who will do a non-recourse loan and their interest rate is really high. Do you know of many?

I was watching the Dave Ramsey show last night and it was obviously taped prior to approval of the bailout. The show was about coming up with solutions to the crisis rather than throwing taxpayer money at the banks. One CPA caller had a good idea--he suggested the banks allow people to pay principle only and double up the principle for a few years so they can build up some "skin" in the deal and add an extra year or two on the mortgage to make up the interest. Again, this suggestion requires the banks to agree and modify loans and we all know how likely that is with a bailout in place!

Every caller was against the bailout. Most of us on this forum were against it. I've written my Congress reps several times and they have all gotten tens of thousands of letters against it but it was approved anyway. I feel like our government must think we are incapable so they don't have to listen to us, when it's really the other way around.

We have to acknowledge that most of the people reading and posting on this board are pretty sophisticated investors who think about pros and cons of each investment. I would guess we all have savings to fall back on in cases of emergency.

For the most part the people who got into interest-only ARMS and option ARMS and who got home equity loans to pay off credit cards understood the terms of the loan. I've seen a few cases of fraud but mostly the people I know who are in trouble are simply very bad money managers. They can't live within their means and don't know how to say no. Even in this crisis where everyone should know the result of crazy loans, I meet people at open houses who want to buy a 3BR/2BA remodeled home and have tons of credit card debt, car loans, etc. They don't want a condo or a 2BR/1BA home that is outdated but they can afford.

I have a past client who has zero control over her financial life and she is in the process of refinancing to pull out cash to pay off back taxes and credit card debt. This is not the first time for her to do this. There is a willing bank and she is a willing borrower.

Several CA counties are lowering property taxes. In CA, when you buy a house, your taxes don't go up unless you remodel or put on an addition. Anyway, I have seen reassessments 15% below their initial tax value (ie--their purchaes price during the peak of the boom). For example, I know one person who purchased their house for $739,000 in 2006 and their new tax rate is based on $622,000.

I heard Maria Bartaromo state on the Today Show that "as soon as credit starts flowing again, people can get higher limits on their credit cards and get home equity loans to start spending again." Like that is the solution!?!

I can't really see bringing manufacturing back, mainly because we are used extremely low cost of goods and nobody will work as cheap as the Chinese, Indians, etc.

However, I do see America creating a totally new mini economy like we did with the Internet. Maybe it would be based on renewable energy and environmental interests.

I can't imagine any circumstance a borrower would go along with this plan if you tell them the truth that you don't plan to pay the mortgage.

I just attended a seminar today by a company that sounded very good. It's called Short Sale 4 Profit. (That is also their website address)

They have 2 services--1) you take the listing and they do all the work and you split the listing-side commission 50-50. Or 2) you take the listing, gather the short sale information, and for $175 they will review it, package it and send it to the banks, but you negotiate with the bank.

They said they close 95% of their deals, but I don't know if that is accurate.