GRAND JUNCTION REAL ESTATE BLOG

Housing Simulus Bill

2008-07-31T03:48:00.000-06:00

I could write for days about this, but I won't. I will try to keep it brief because the last thing I want to do is put you to sleep.

Thanks for passing the bill Congress. Thanks for signing the bill Mr. Bush. Thanks for adding ANOTHER layer of government. Thanks for "fixing" the housing mess. Thanks for INCREASING the minimum down payment for FHA. Thanks for allowing the federal government to hand out hundreds of millions of dollars so LOCAL governments can buy up foreclosures. Last time I checked this was still a capitalist country. That was before the President signed this bill into law. Thanks for nothing Washington DC.

The lenders were the people profiting when times were good. They are the only ones who can fix this problem without prolonging the housing troubles we face. They are the only ones who can freeze ARM's or work out loans. They are the only ones who can approve a short sale so the house doesn't go into foreclosure. They are the only ones with the ability to stop the bleeding.

The 10 scariest words you'll ever hear are, "I'm with the federal government and I'm here to help."

It's too late to stop this bill. Shoot, the head of the National Association Of Realtors sent out an email today praising the efforts of their members for getting the bill passed.

This bill is good for first time homebuyers who qualify for CHFA. This bill is good for areas with median home prices over $417,000. This bill is good for the fine folks at Fannie and Freddie. This bill is good for the politicians who get to go home and run campaign ads saying that they helped stop the mortgage meltdown. Odds are that if you are reading this... This bill did absolutely nothing good for you.

I have never seen such a HUGE bill that will help so FEW Americans. I hope I can look back in 12 months and say I was wrong, but this wasn't a problem to be solved by the government. Want to take bets? How long will it be before Congress says that we need to pass more legislation to help heal this real estate market? Paging Nancy Pelosi!

Kevin Wade
Cherry Creek Mortgage Company
kwade@ccmclending.com

How's Your Internet Marketing Going?

2008-07-29T09:23:00.004-06:00

Recently Yahoo released statistics regarding how buyers and sellers choose a realtor. Most realtors spend an infinite amount of time building a client base through traditional marketing strategies, and trying to generate referrals from that base. However due to these recent statistics it would be a wise option to take a walk down that road less traveled.
Realtors are being found over 75% of the time through search engines. Focusing some of your Real Estate Marketing efforts to improve your success of being found through search engines is where all signs seem to be pointing.
Providing a destination where people can receive information on services you offer is where it starts. Making that destination more visible is where the importance of Internet Marketing plays a significant role.
The survey emphasized that almost half reviewed found agents that they had never heard of. From there it can be assumed that the other half could have been reaffirming their feelings for a certain Realtor after being introduced from traditional marketing strategies. This is where the importance of being visible takes place, if you cannot be found through a secondary resource the statistics show that the new client will not select your service.
A few statistics from the RealTrend article:
1) 74% of people who accessed an agent Web site got there with the help of a search engine.
2) 45% of respondents used the Internet to learn about agents they didn’t know existed.
3) 41% discovered special deals and promotions offered from an agent through the Internet.
While family and friend referrals will still play an essential role in developing a client base just being able to provide a source for verification should be at least considered.

Source: realestatemarketingblog.com

MY TAKE: You can sit back and watch the market change or you can change with the market. What did you do today to make a change in your business? Does your business model need to change? Just some things to think about. Usually we get to the stage of, "I should do ____________" and then we stop. Or we kinda sorta do what we said we should, but didn't follow through and didn't do it cosistently. The result? An agent that says, "That doesn't work in my market." That attitude won't help anyone close more deals.

Kevin Wade

kwade@ccmclending.com

Cherry Creek Mortgage Company

970-243-7800 - Office

970-201-2310 - Cell

Housing Bill Has Key Changes

2008-07-25T06:15:00.000-06:00

Okay, so you may or may not have heard that the housing bill passed the house and the senate. The president has said that he will sign the bill into law. So what does this mean? We have gone over some of the details and wanted to present the major changes that will be coming with this new legislation.

Tonight the House and Senate reached agreement on a massive housing bill that affects FHA, Fannie and Freddie, tax policy and many changes involving the housing market. We have previously briefed you by conference call and email on the progress of several separate measures, but the housing and mortgage crisis has caused Congress to combine these provisions into a bill exceeding 400 pages. The House will vote on the measure tomorrow, with the Senate to follow by next week. The White House has supported much of the measure but has criticized some components. Despite a prior veto threat, we expect the President will sign this bill, with final action before the August congressional recess.
Here are the major components:

1. FHA Changes
Mortgage limits for high cost areas will be increased to $625,000 on a permanent basis (115% of the current conforming limit).
The FHA floor will go from 48% to 65% of the current conforming limit. This will put the new permanent floor at $271,000.
Cash downpayment is set at 3.5%.
The seller funded downpayment assistance program (DPA) will be terminated on September 30.
The risk based premium established by HUD last week will be suspended on September 30. The ceiling on upfront premiums will go to 3%.
2. Fannie and Freddie
The conforming loan limit will be increased to 115% of area median up to $625,000.
The bill provides for a federal "backstop" for Fannie and Freddie which allows the Treasury to capitalize the companies by taking an equity stake.
A new regulator with enhanced powers is created.
The bill creates an affordable housing trust fund paid for by assessments on Fannie and Freddie to help prevent foreclosures and facilitate affordable housing
3. FHA Rescue Fund
The bill creates a special FHA refinance program designed to allow the refinance into fixed rate FHA products of up to $300 billion in distressed mortgages.
4. Licensing
Encourages a nation wide licensing and registry system for loan originators by setting minimum qualifications and assigning responsibility to HUD for establishing new rules for those states that do not enact licensing laws.
5. Redevelopment of Foreclosed Properties
Provides $4 billion in funds for local governments to purchase and redevelop foreclosed properties.
6. Tax Incentives
Establishes a range of housing incentives, including a first time homebuyer tax credit and expands the Low Income Housing Tax Credit.

There is a great deal of detail in this complex bill and we will update you as more information is available.

I am not sure how this will affect the Grand Valley, but I don't see anything in this legislation that is going to make people want to rush out and buy a home. There is a $7500 tax credit which will serve as some incentive, but the new FHA down payment of 3.5% will make it more difficult for people to get into homes. If they really wanted to make homes more appealing they should have reduced the minimum down payment for 12 months to 1%. Then move it to a minimum 2% down for the next 12 months. After that it can revert to the standard 3% down payment. This would give first time home buyers a chance to eat up some of this inventory and in 24 months we would be back to a regular 3% down payment which has served FHA well over the years.

We will keep you posted on additional changes as we learn of them.

Kevin Wade
Cherry Creek Mortgage Company
kwade@ccmclending.com
970-243-7800 - Office
970-201-2310 - Cell

Grand Junction Rentals - Should You Buy One?

2008-07-24T05:56:00.002-06:00

How long will this rental market stay this way?

Have you looked at the rental market lately? There are so few rentals available that usually when someone puts a rental in the paper they field a few dozen calls and end up renting the house for a premium. Often with longer than average leases AND with first, last and a security deposit.

I don't see the rental market weakening. There are just too few homes available and if lending guidelines become more restrictive (they aren't getting any easier) then more and more people will have to rent.

Why not consider buying a rental yourself? Or go through your database and find clients you have worked with in the past and recommend purchasing a rental property or two. There hasn't been a better time to buy in Grand Junction in years and it is still possible to cash flow on a rental, not to mention all of the other benefits that come with owning an investment property.

Put together a packet of information and send it to your best clients. Call me and I can help you with some of the information you might want to share. I will even go the extra mile and give you a Cherry Creek Mortgage Company folder for all of your information :)

This is a tremendous opportunity to close a transaction or two that you wouldn't close otherwise.

Kevin Wade
kwade@ccmclending.com
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

5 FREE Things To Do Right Now To Survive A Market Change

2008-07-23T06:36:00.000-06:00

OKAYfine. H2s aren’t so practical, are they? And it’s maybe vanity to have an assistant at this point, when you’re down to 20 deals a year. Maybe it’s stupid to run that display ad in the paper, sharing space with a Realtor or Loan Officer. But you’re committed, right? The give and take of this grind is in your blood, and you’re gonna survive this..resurgence of the 1970’s.

So let’s figure out how:

1) Ruthlessly Control Your Personal Spending. Thanks to the IRS, I’ve been a low-spending guy anyway. But there was still fat in my budget. Mint.Com quickly pointed out what I actually spent money on. And there was tons of room to save. About $700 bucks a month without much lifestyle change. Each $100 you can save a month is $150 you don’t have to earn. The lower your nut is, the better equipped you’re gonna be. Having a low cash need = low stress.
2) Control Your Environment. De clutter the hell out of everything. That stack of “broker/agent” magazines? Pitch. Everything in your workspace is something that you have to think about and something that siphons mental energy. Spend 40 minutes pitching damn near everything till you’re down to your computer, family pictures, a pen and paper, and maybe a cup for coffee or water. Make your workspace look like an Apple commercial, and see what you get done.
3) Lead Generation = 35% of your time, minimum. Yeah, deals take longer and are more fragile then ever. I get it. But would you sleep better at night with six more fragile deals? Surely SOME of your deals would close if you had more going. And, when you learn how to ensure fragile deals are gonna close, well, when the market hits the other end of the cycle, you will be crushing your new competition. C’mon. Instead of calling your lender and asking for a status update every three minutes (even though they should be calling you), why not call some past bclients and offer to be a voice of reason in these here heady times? You work a 40 hour week? Great. Let’s have 18 hours of lead generation. Cut the incessant checking of the bond, because kids, the BOND DOESN’T MATTER IF YOU ARE PRODUCING UNDER 2mm/month.
4) Have your Head in the Game and Not In Your…. Look, we know lead conversion is tougher than it was, but why not do it with gusto and enthusiasm? The hangdog way isn’t for Bloodhounds. Find joy in being more productive than other Realtors/LOs/Etc. Let your need for differentiation rule in this arena. Let your contrasting style invigorate you. Just walk away from idiots and zealots. Don’t focus on the bullshit, focus on the opportunity. Make your mind tuff, but take action.
5) Define and Seek Peak Experiences. Maslow was a damn genius. Write down 2-3 transcendent and cool things you wanna do. Most times it’ll be cheap. I got more bang out of watching my 3 year old sell lemonade than I got out of buying an Acura RL. Figure out what you’re happy memories are and go make more. I have a list, here.

The list could be expanded, but simple works. The people around us are all messing their heads up, and it’s probably good to get connected and identified with better peers. If you want to wallow in failure, that’s also an option that’s out there for you, and there are plenty of places to do that. But why? I’ve experienced success and failure, and failure is WAY less pleasant.

Source: Chris Johnson of http://www.newmarketsurvivalguide.com/

MY TAKE: There is some good advice in here. I also believe the list could be expanded, but this is a good place to start. If you make your list TOO long you can feel overwhelmed and not do anything on the list so pick a place to start and start.

Marketing agreements are great, but you would be better served to partner with a lender who understands the importance of taking people off the fence. Lead conversion is never going to be 100%, but some lenders are better than others at helping people understand that it is okay to buy right now. I could rattle off a list of 50 reasons to buy a home in Grand Junction and not have any of them be about property appreciation.

Give me a call (after you clean off your desk) and let's talk about some strategies Cherry Creek has to get some of these people off the fence.

Kevin Wade
Cherry Creek Mortgage Company
kwade@ccmclending.com
970-243-7800 - Office
970-201-2310 - Cell

5 Minutes On "Why Buy Now"

2008-07-22T05:54:00.000-06:00

I gave a quick radio interview this week that may worth a listen. It’s another take on “Why Now
Is A Good Time To Buy” from the mortgage guy’s perspective.

Some of the highlights:
1) Getting a mortgage approval is likely to get tougher
2) FHA is increasing its fees and Fannie and Freddie are likely to follow
3) Why banks are turning down loans with 50 percent down payments
4) How the election is playing into consumer confidence

Mortgage markets are a pendulum and, right now, we’re swinging to the rough side. Give a listen, find your talking points, and help your clients understand what’s coming down the pipe.

Source: Dan Green of TheMortgageReports.com

MY TAKE: I'm still sick of the bad news and I feel compelled to do my part to help everyone see that the sky is not falling. Millionaires are made in markets like these!

This interview is just another way to help people see that now is the time to get off the fence. He makes some great points and while you can sometimes feel like a salesman (which you are). You are actually doing your clients a disservice by NOT telling that there hasn't been a better time to buy a home in Grand Junction in YEARS!

Kevin Wade
Cherry Creek Mortgage Company
kwade@ccmclending.com
970-243-7800 - Office
970-201-2310 - Cell

What If Houses Didn't Appreciate?

2008-07-21T02:53:00.000-06:00

If I had a crystal ball and looked 30 years into the future only to find out that real estate had not gone up in value what would I tell our clients to do?

The answer is simple. Buy now.

Over the past 7 or 8 years everyone and their dog has become a real estate speculator. We all have visions of 20% returns year over year. Most of us (myself included) have never seen a market where home prices have fallen. In the Grand Junction area we have been particularly blessed with an appreciating market. A recent rise in inventory and increased marketing times has caused some concern with people who make their living in the real estate market.

Now that the market appears to be stablizing (and that IS what it's doing) what do we tell buyers? Do we tell them to try to time the market bottom? Do we tell them that house prices will continue to go up? Do we try to look into our crystal ball and tell them what might happen?

My position would be this. Tell them that even if home values never went up they have to live somewhere. They can pay their mortgage or they can pay someone else's mortgage by renting. After 30 years of paying on their mortgage a $300,000 house today that didn't go up in value would be worth $300,000 and the buyers would own it. The same house, if rented would be worth the same money in 30 years. Let's say rent stays the same and never goes up... What you have done is paid for that landlords house. You have nothing to show for your decades of payments.

If house values never go up you still OWN your house. You can put astroturf in the back yard (provided covenants allow for that), you can paint the dining room red, you can put in tan carpet rather than the landlord putting in gray, you can hang pictures on the wall without worrying about a security deposit, you can maintain the home to your standards, not a landlord's. You get the idea... It's goood to be the owner.

My advice would be to buy now. I would love to hear some of your reasons for buying now even if house values never went up again.

Kevin Wade
kwade@ccmclending.com
970-243-7800 - Office
970-201-2310 - Cell

What's My Rate?

2008-07-18T06:11:00.000-06:00

Here's a secret about rate shopping: all loan officers worth their salt give "great rates" because, otherwise, we'd be out of business. Most mortgage rates are a commodity, after all, so their levels are set by the market -- not by the lender.
This is why home buyers would be well-served to get past "rate" and get onto the important stuff like choosing a responsible mortgage product, or choosing an appropriate structure.
When we get past the rate part of everything, it becomes clear that it actually matters from where a person gets those "great rates". This is because in the mortgage business, there's a well-known math formula:

(Great Rate) + (Poor Mortgage Structure) = (Financial Failure)

Now, to be candid for a minute -- if you've never had a quality mortgage experience, this formula reads like a complete crock, I know; structure is silly, right? Well, I understand that line of thinking so let me add an objection-killer to the mix:

Getting responsible mortgage planning advice comes at the same interest rate and with the same loan fees as getting no mortgage planning advice. And most times, it gets delivered for less.
People often overlook this point, thinking that loan officers are like lawyers, where more skill means a higher the "bill rate". This is false -- it actually works the other way. Truly great loan officers understand that the client-servicer relationship is a long-term one whereas struggling loan officers just "needs to make money fast".

The expert doesn't charge you more for his time because it's not the deal he's after -- it's the relationship. The expert knows that you'll need 8 mortgages or more in your lifetime and he wants to be the first phone call that you make on all of them; the average loan officer only focuses on the first one.

It's a counter-intuitive twist, but people usually get better advice at lower prices from experts than from run-of-the-mill loan officers. Remember, the experts don't have to pump up rates or fees to be profitable -- they have their big book of clients that assures them of it.

And so, just like that, we've changed the math formula we look at earlier to something better:

(Great Rate) + (Sound Mortgage Structure) = (Better Outcomes)

Now, for an added twist on the math, remember that "rate" and "structure" are only two parts of the mortgage process. They're two important parts, of course, but they're not the only parts. There's also what happens after the rate and structure are set.

And strangely, for as important as interest rate is to a lot of people, many of them tend to forget what their rate is shortly after locking it in. Instead, what they remember most from their mortgage is the process and what happened after their rate got locked.

Author's note: Next time you're with friends, you can test this theory. Ask a homeowner about their mortgage rate and they'll fumble. But, ask them about their mortgage experience and then watch what happens.

1) Were phone calls and emails returned immediately?

2) Were regular status updates delivered to everyone involved?
3) Did the money show up in time for the closing?
4) Did the final mortgage terms match the original agreement?

It's the answers to questions like these that define a person's mortgage experience.

In another way, comparing interest rates between lenders is like comparing menus between restaurants -- you never know how good the food really is until after you've eaten. It's no wonder that trendy restaurants fail at such a high rate; it's for the same reason that loan officers do. All packaging, no product.

So, because rate and fees are generally within a tight range from lender to lender, it tells us that home buyers may be better served to shop for expertise instead. And if you're not sure whether your loan officer is an expert in his field, chances are, he's not.

Expert loan officers will often give better service at a lower cost than their peers, and they'll also give you piece of mind for a smooth closing. And in the end, it's the latter part that matters most -- the lowest guaranteed rate doesn't matter a bit if the money never shows up at closing.

MY TAKE: This stuff is powerful. Do you want an amazing rate or do you want an amazing rate and the right loan program for you? Oh yeah, do you want money to be there at closing? Do you want a relationship with the lender or do you want to shop online until you are blue in the face and deal with a lender out of California or New York because they don't charge for an appraisal?

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 - Office

970-201-2310 - Cell

ccmclencing.com

Americans Underestimate The Value Of Their Credit Score

2008-07-17T05:51:00.000-06:00

While the nation's credit-scoring program is a critical factor in determining what individual borrowers pay in interest on credit cards and mortgages — and even how much they pay for insurance — new research suggests that most Americans still do not understand how the system works.
Respondents to a recent Consumer Federation of America/Washington Mutual Inc. survey largely did not know that credit scores are derived from payment histories, with many participants mistakenly believing that the number is influenced by such factors as income, age, education, and marital standing.
According to Anthony Vuoto of Washington Mutual Card Services, if all consumers took steps to boost their credit scores by at least 30 points, they together would realize as much as $28 billion annually in savings.
Source: Boston Globe (07/11/08)

MY TAKE: People don't understand how credit impacts them on a daily basis. From the amount they pay for insurance to the 18% rate they have on their car loan. I have had clients walk into my office and not understand why their credit scores are so low when they pay their bills on time. By bills they are often referring to utlity, cable, trash bills, etc. If someone walks into our office with credit issues we recommend credit repair even if we ARE able to get them financed. If we are not able to get them financed we give them a very specific gameplan that will typically help position them to buy a home within 6 to 12 months. We don't see ourselves as JUST a lender. We see ourselves as a partner for their financial future and want to provide as much value as humanly possible in order to turn build a relationship while working on the single largest financial transaction of their lives. I would put that up against an online lender any day of the week.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell
kwade@ccmclending.com

I Promised A Happy Post

2008-07-16T05:42:00.000-06:00

I promised a happy post and since the outlook for the financial sector looked bleak I had to pull a rabbit out of the hat. Bad humor, I know, but I defy you to look at that picture and not smile. We can't be serious ALL of the time.

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 - Office

970-201-2310 - Cell

I see your pancake and raise you a waffle!

Fannie And Freddie - Not Out Of The Woods Yet

2008-07-15T05:28:00.000-06:00

Preface: Alright... All of the negative news this past week or so is starting to wear on me. After today's post I am going to try really hard to post some good news. Or something light-hearted and funny. I am picturing rabbits with pancakes on their heads. Now tell me that isn't funny.

NEW YORK (CNNMoney.com) -- The federal government's plan to rescue Fannie Mae and Freddie Mac won support of some experts and politicians Monday but did not fully assure investors in the beleaguered mortgage finance giants.
Shares prices of Fannie and Freddie, continuing their weak run, fell to fresh 17-year lows. Their performance was troubling because the two firms are crucial sources of home loan funding and key to any recovery of the battered housing market and the broader economy.
The Treasury Department and Federal Reserve announced steps Sunday to make funds available to the firms if necessary. Experts said the success of the efforts will ultimately be measured by market reaction.
Shortly after the U.S. markets opened, shares of Fannie (FNM, Fortune 500) jumped as much as 32%, while shares of Freddie (FRE, Fortune 500) jumped 26% higher.
But by early afternoon, they had fallen deeply into negative territory once again, with Freddie shares tumbling 21% at their low point of the day and Fannie shares off 9% before they once again rebounded.
Even with those early gains, shares of the two companies had recovered only a fraction of the declines they suffered in trading last week.
Things were a touch better in credit markets, as Freddie received good prices on $3 billion in corporate debt it sold through auction early Monday morning.
Three-month bonds sold at a slightly lower interest rate than Freddie's previous auction a week earlier, while the six-month bond sold for only a narrowly higher price, according to wire service reports. That suggests that investors are more confident about the near term outlook for the firms than the long-term.
Government tries to assure investors
Treasury Secretary Henry Paulson said Sunday the Bush administration plans to ask Congress to pass legislation that would temporarily extend lines of credit from Treasury to the mortgage providers. The firms now have authority to borrow up to $2.25 billion each from Treasury. A Treasury spokeswoman said the department had not yet set a new limit it would seek from Congress.
Paulson also proposed that Treasury be given authority to buy equity in the companies, although a Treasury spokeswoman said Monday that the department did not expect to need to use the authority, that it was only proposed as a "back-stop" to be used on an "as-needed" basis.
In addition, the Federal Reserve announced that the Federal Reserve Bank of New York had been granted authority to lend to Fannie and Freddie should such lending prove necessary. The Fed has traditionally only lent money directly to commercial banks, but since it helped engineer a purchase of Bear Stearns in March, it has allowed Wall Street firms to also tap into that source of funds, known as the discount window.
"This plan meets the policy requirements for a rescue," said Jaret Seiberg, a financial services analyst for the Stanford Group, a Washington research firm, in a note Monday morning. "It provides emergency liquidity measures and establishes a mechanism for injecting capital into the enterprises if needed."
Both companies said that they have adequate capital and that it is possible they might not need to turn to the Fed or Treasury for funds. The Office of Federal Housing Enterprise Oversight, the federal regulator that oversees the firms, also said on Sunday that the companies have enough capital.
Seiberg said it's too soon to tell if the plans announced Sunday are enough to see Fannie and Freddie through the current crisis.
"Ultimately, the success or failure of this plan rests with the market," he said.
University of Central Florida economist Sean Snaith said he agrees that the actions by Treasury and the Fed were prompted by market concerns more than any imminent problem the firms might have continuing normal operations.
"Using the stock market as a barometer is difficult to do in a case like this," Snaith said. "This crisis is essentially a crisis of confidence, and that confidence takes some time to restore."
Main player in mortgage market
The two firms, which were set up by the government, own or back about $5 trillion worth of home debt - half the mortgage debt in the country. They have suffered about $12 billion in losses between them since last summer.
Since the crisis in credit markets last year, they have become virtually the only source of funding for banks and other home lenders looking to make home loans. Their ability to do so is crucial to the recovery of the battered home market and the broader U.S. economy.
Despite their government-sponsored status, they are owned by shareholders, and those investors drove shares down by nearly half last week on concerns that they would not be able to raise the capital they need to cover future losses. The declining share price made it more difficult and expensive to raise that capital. Fear was rampant on Wall Street last week that a government bailout would leave shareholders' stake worthless.
Sen. Christopher Dodd, chairman of the Senate Banking Committee, told CNNMoney.com on Monday that he is confident Fannie and Freddie are sound, and he praised the actions by Treasury and the Fed Sunday.
"It looks as least that first blush that these ideas that are being floated are having the desired effect and that is to calm things down here and to restore some confidence that the people need to have in these [firms]," he said.
But he vowed to have hearings this week on both the plans to help Fannie and Freddie, as well as on the failure of California bank IndyMac, which was taken over by the Federal Deposit Insurance Corp. on Friday evening in the largest bank failure since 1988. IndyMac had been one of the leading lenders making home loans in which borrowers were not required to provide documentation of their income.
-- CNNMoney.com staff writer Aaron Smith contributed to this report.

MY TAKE: It's like a train wreck. I can't turn away. I think when it is all said and done Fannie and or Freddie will cease to exist in the capacity it exists today. Maybe I am a bit paranoid, but I think we will see new lending guidelines. I think anything that makes it even harder to get a loan at this point places the real estate market in serious jeopardy without regard to region or reason. Keep your fingers crossed and I will keep watching.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

Senator To Blame For Run On Indymac?

2008-07-14T04:01:00.000-06:00

By STEPHEN BERNARD, AP Business Writer
NEW YORK - Sen. Charles Schumer on Sunday defended himself against claims by regulators that he was partially to blame for a run on IndyMac Bancorp Inc. that led to the bank's takeover by the government Friday.
At a news conference Sunday, the New York Democrat deflected blame cast upon him by regulators for causing a run on the bank that saw depositors withdraw more than $1.3 billion during the 11 days after Schumer released a letter about the possible risks of IndyMac failing.
"The regulator here was asleep at the switch," Schumer said. "The administration is doing what they always do, blaming the fire on the person who called 9-1-1."
Schumer noted his letter in late June provided "no new revelations" about IndyMac, and instead pointed out the bank's problems had been building for years.
On Friday, the Office of Thrift Supervision transferred control of IndyMac to the Federal Deposit Insurance Corp. because it did not think the lender could meet its depositors' demands.
IndyMac is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said after taking control of the bank.
As of March 31, IndyMac had $19.06 billion in total deposits.
Regulators pinned part of IndyMac's recent problems on Schumer's June 26 letter causing alarm with depositors, leading to the run on the bank that that essentially sapped it of the liquidity needed to continue functioning properly.
During the housing boom earlier in the decade, IndyMac was one of the largest lenders of alt-A loans — mortgages given to customers with minor credit trouble or that did not have the proper documentation to receive a traditional, prime loan.
Schumer was quick to point out Sunday that IndyMac is an outlier among banks because it was heavily involved in originating riskier mortgages than traditional community and regional banks.
Defaults among alt-A mortgages, like many other nontraditional loans, rapidly increased over the past year, forcing banks like IndyMac to set aside more money to cover defaults.
It also made it difficult for IndyMac to sell pools of mortgages — known as mortgage-backed securities — because investors shied away from bonds backed by the troubled loans. That left IndyMac searching for new ways to generate capital to continue operations, as it relied heavily on the mortgage securities market to raise funds.
The bank is scheduled to reopen Monday as IndyMac Federal Bank, FSB, under the oversight of the FDIC.
The FDIC estimates its takeover of IndyMac will cost between $4 billion and $8 billion.
The FDIC set up a help page and hotline for IndyMac customers with questions regarding their deposits.

MY TAKE: I will start off by saying that I am not a big fan of Charles Schumer. Not really sure that one senator can start a run on a bank with a few comments and a letter, but I wonder if he is one of the senators who got a low rate mortgage from Countrywide? Just curious. There are a handful of politicians that are willing to work together to come up with real solutions to our financial problems without grandstanding and without concerning themselves with who gets credit for what. Charles Schumer is not one of those people. Do you remember the painting of our founding fathers signing the Declaration of Inependence? Am I alone in thinking that if anyone painted a picture of our leaders now it would show a room full of grown ups with fingers pointed at one another. Maybe a few with shrugged shoulders as if to say, "It wasn't me."

Washington... Throw the bums out :)

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

Fannie And Freddie Appear To Be On The Ropes

2008-07-11T05:16:00.000-06:00

By Al Yoon
NEW YORK (Reuters) - A firestorm of anxiety over the ability of U.S. mortgage giants Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) to get the capital they need to survive sent their debt and stocks plummeting on Thursday.
Stoking concerns, former St. Louis Federal Reserve President William Poole said the two major U.S. mortgage finance companies were "insolvent" and may need a U.S. government bailout, according to Bloomberg News.
The outlook was so dire that Bush administration officials were meeting with regulators to discuss contingency plans should they be unable to raise funds and support the worst housing market since the Great Depression, according to a report in the Wall Street Journal.
Yield spread premiums for the larger Fannie Mae rose to the highest since the days before the Federal Reserve's orchestrated bailout of Bear Stearns Cos in March.
Shares in both companies plunged to their lowest since 1991.
The government-sponsored enterprises, or GSEs, are expected to need billions of dollars in capital to support their balance sheets to try to stabilize the mortgage market. They found strong demand as they raised some $20 billion since last fall, but the instability in share prices since raises doubts about new investor support.
"This is not an opportune time to have to increase liquidity with the stocks down so much," said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates in Toledo, Ohio. "These dilutive deals these companies are putting together are just increasing that downward spiral within the financials, not even to mention the confidence in the whole system."
Mounting doubts over the ability of the companies led Deutsche Bank analyst Mustafa Chowdhury, a former Freddie Mac executive, on a Wednesday conference call to float the possibility that share prices could go below $5.
For the debt, much depends on the continued support of foreign central banks that have been loading up on the companies' $1.6 trillion in outstanding debt, a Deutsche Bank trader said on the call.
"If you are going to bail out Bear Stearns, the Congress is going to support Fannie and Freddie," said Andrew Brenner, co-head of structured products at MF Global in New York.
Yields on 10-year bonds issued by Fannie Mae and Freddie Mac ballooned 10 basis points to more than 1 percentage point above government debt. They had been quoted as much as 12 basis points wider than late Wednesday.
Five-year credit default swaps on Fannie Mae widened by about 5 basis points to nearly 82 basis points, or $82,000 a year to protect $10 million of debt, while Freddie Mac's swaps widened by about 2 basis points to about 82 basis points.
Poole's remarks intensified traders' fears about the financial soundness of Fannie Mae and Freddie Mac.
The mortgage-backed securities issued and guaranteed by the GSEs were more insulated since payments on the issues flow directly from homeowners to investors.
Early weakness in the "agency" debt market spilled into other parts of the bond market. Interest rate swap spreads grew anywhere from 0.50 basis points to 1.50 basis points.
(Additional reporting by Richard Leong, Dena Aubin and Deborah Jian Lee; Editing by Tom Hals)

MY TAKE: If Fannie and Freddie are less of a concern than Bear Stearns I'll eat the laptop I am using to type this blog. Not sure if the government will have to bail out Freddie and Fannie, but it is looking more and more likely every day. The stock is at levels not seen since 1985!!! Nothing we can do about it now, but wait for the fallout... Which will be significant... You think it's hard to borrow money now? Just wait.

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 - Office

970-201-2310 - Cell

kwade@ccmclending.com

Second Lender This Week

2008-07-10T08:43:00.003-06:00

cnn.com
Update - 2008-07-09: In an email to employees today (view pdf) Prospect CEO Mark Filler announced they would not be buying CTX Mortgage:
"Today, I am sorry to inform you that Prospect Mortgage and Centex Homes have failed to reach mutually acceptable terms and we are no longer moving forward with the acquisition of the CTX Mortgage retail business. We truly respect CTX Mortgage and Centex's leadership and sincerely wish them the very best. While disappointing, this does not change Prospect Mortgage's commitment to growth or our continued financial backing from Sterling Partners."
This just in from a tipster: "CTX just notified their employees this morning via a conference call that they are shutting the doors." Right behind that, we got "Prospect is NOT buying CTX; they just the the word this morning and will be shut down by end of August." Another wrote "CTX is done and prospect deal is over."
It all sounds like CTX Mortgage is no more, but a source we spoke with said employees were not let go in that conference call, but rather "left to wonder how much longer" they would have their jobs.
An official statement (view pdf) was sent to us by Centex spokesperson Eric Bruner:
"Earlier this year, Centex announced plans to restructure its mortgage operations to focus exclusively on originating mortgages for homes built by Centex. Centex has been in discussions with Prospect Mortgage for several months to transfer its retail branches that focus on non-Centex Homes-related mortgages, and those discussions have ended without the companies reaching final agreement. In a conference call with employees this morning, Centex told employees that it intends to work with its retail branch teams to facilitate a smooth transition of its retail branches to other mortgage companies over time. In the meantime, CTX Mortgage continues to provide full support to its retail branches and loan officers, including accepting loan applications and offering rate locks. And for its builder-focused platform, CTX Mortgage will continue as a full-service lender."
That statement echoes the message from Centex CEO Tim Bartosh in an email (view pdf) sent to employees this morning:
"When we made the difficult decision to exit our retail mortgage operations several months ago, one of our principal considerations was to ensure the continuity of business for our retail team members. After making steady progress in our discussions with Prospect Mortgage, we were unable to overcome certain unexpected issues and we will not be moving ahead to complete that transaction...
For any branches that are unable to find a new mortgage partner, we'll work with the branch manager on an orderly wind-down and transition of our loan officers to new opportunities."
Bartosh's memo goes on to mention they will hold two "town hall" meetings tomorrow to address employee questions.
Centex shares (CTX), originally up at mid-day, started sliding by mid-afternoon.
We were not told how many CTX Mortgage employees will be affected by the offing of the retail mortgage branches.

MY TAKE: It isn't really a surprise, but it is still no less shocking. CTX has a large presence in Grand Junction and they do a good job for their clients. The story speaks for itself and their isn't much else to say other than this. If someone would have told you 24 months ago that in a one week period CTX AND Indymac would announce that they are closing their doors for good you would have laughed me out of business.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell
kwade@ccmclending.com

Yet Another Lender Imploding

2008-07-08T07:51:00.002-06:00

Beleaguered bank IndyMac has had its price target cut to $0 from $1 after the company said that second quarter losses will be bigger than the $900 million loss racked up in the first quarter. Analysts at Friedman Billings Ramsay are not saying that the company will fail per se, just that there is no value left for shareholders. The stock last traded at around 70 cents.

This glum view was also fueled by news that the bank will fire half its employees and that it has been unable to raise additional capital. According to a Bloomberg report, the California- based lender was told by regulators that it is no longer “well capitalized.” IndyMac was the second-largest independent U.S. mortgage lender last year after Countrywide Financial, now owned by Bank of America (BAC).

“The big problem is that no one will give them money. There’s too much risk involved and not enough value in their franchise,” Jason Arnold, an analyst at RBC Capital Markets, told Bloomberg.

Source: Colin Barr

MY TAKE: As a lender, I love besting my comeptition, but I am not happy seeing Indymac fail. They have a presence in the Grand Valley and there are some good loan officers over there that will suffer as a result of these financial troubles. As of yesterday Indymac shut down wholesale operations across the country and it has been rumored that they will be laying off approximately half of their employees.

For now, it is believed that retail operations (like the branch in Grand Junction) will remain open, but Indymac is having trouble borrowing money and without some liquidity they won't be able to write new loans.

I hope they are able to hold things together and pull through because competition will help end this credit crunch faster than any government program.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

Hope You Had A Great Fourth!

2008-07-07T11:10:00.001-06:00

What a wonderful weekend!

I am back in the office and getting myself back up to speed after the long holiday weekend.

I travelled to the cool breezes of Las Vegas... I think the high temperature for my trip was about 112 or 113. There was a breeze, but that made me feel like I was cooking on high rather than low. No relief at all. Toward the end of the trip I just stayed inside between the hours of 10 and 6.

Now that I am back I will be back to blogging regularly. I look forward to hearing from you soon.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

Consumer Confidence At 28 Year Lows

2008-07-03T06:34:00.001-06:00

NEW YORK (Reuters) - consumer confidence fell more than expected in June, hitting another 28-year low as surging prices and mounting job losses sapped sentiment, according to a survey released on Friday.
The Reuters/University of Michigan Surveys of Consumers also said five-year inflation expectations remained steady at the peak of 3.4 percent reached in May, which was the highest in 13 years.
Federal Reserve officials have focused on long-term inflation expectations in recent comments and the persistence of strong inflationary pressures heightens the dilemma they face of fighting price growth or supporting a flagging economy.
The Surveys of Consumers said the final June reading for its index of confidence fell to 56.4 from May's 59.8.
The June reading is the lowest since 51.7 in May 1980, which was also the lowest reading ever. The index dates back to 1952, though the survey has been conducted since 1946.
Economists had expected a reading of 57.0, according to a Reuters poll. Their forecasts ranged from 55.9 to 60.0. The final June result is slightly below the preliminary figure of 56.7 released on June 13.
One-year inflation expectations declined to still-elevated 5.1 percent from May's 5.2 percent. May's one-year inflation expectations reading was the highest since 5.2 percent in February 1982.
The index of consumer expectations fell to 49.2 in June -- its lowest since May 1980. This was down from May's 51.1.
Meanwhile, the index of current personal finances fell to 69 in June -- the lowest on record -- from 80 in May.
(by Burton Frierson; Editing by Theodore d'Afflisio

MY TAKE: Some economists generally dismiss consumer confidence numbers. Most people aren't educated enough on economic issues to understand where the market is headed. As far as I am concerned, many economist suffer the same problem.
The truth is, confidence is so low that it is impossible to ignore. On a personal level, think about how many times a day you hear someone complaining about $4 gas. Just ask some of your fellow Realtors who spend $30-$50 for gas each time they go show properties. Talk to someone who does the grocery shopping and ask them about food prices. The consumer is definitely feeling the pinch. Plus we have about 5 months of hearing how bad the economy is during the run up to the presidential election.

Kevin Wade
Cherry Creek Mortgage Company
kwade@ccmclending.com
970-243-7800 Office
970-201-2310 Cell

Hardest Hit Areas Showing Improvement

2008-07-02T05:17:00.000-06:00

Although nationally, home sales are still on the soft side, new data shows an uptick in several of the areas — including Fort Myers, Fla.; Las Vegas; Sacramento, Calif.; and inner-city Detroit — hit hardest by foreclosures and falling prices.

Americans generally remain wary of further declines in residential prices, but the data from these areas suggest buyers are finding the bargains too enticing to pass up.

Thomas Lawler, a Virginia-based housing economist, says home sellers "have moved into the acceptance mode" and are pricing properties more realistically.

DataQuick Information Systems calculates that sales of single-family homes in California's Sacramento County totaled 1,669 last month, a 41-percent jump from a year earlier as the median sales price fell 34 percent to $226,250. Meanwhile, the Greater Las Vegas Association of REALTORS® reports that properties being sold by lenders account for more than 50 percent of recent sales.

Source: Wall Street Journal, James R. Hagerty (05/27/08)

MY TAKE: This is a step in the right direction. A national recovery means national news coverage. It is possible that this could prevent our pull back from getting out of hand. A slight pull back is healthy and very necessary. There are people who have wanted to jump into the market, but they have been scared off by a lack of inventory, bidding wars and soaring prices. This is the perfect time to find those first time home buyers and get them started building equity.

Kevin Wade
Cherry Creek Mortgage Company
kwade@ccmclending.com
970-243-7800 Office
970-201-2310 Cell

Insane RESPA Proposal

2008-07-01T06:02:00.000-06:00

The intentions are honorable: to simplify the real estate closing process and make it more transparent.

But the federal government’s latest attempt to reform the real estate settlement process tries to do too much at a time when settlement service providers can least afford to implement drastic changes, said experts on the Real Estate Settlement Procedures Act (RESPA) who spoke at the 2008 NAR Midyear Legislative Meetings & Trade Expo.

The U.S. Department of Housing and Urban Development set off a firestorm of controversy last month when it issued its sweeping proposal, which would expand the Good Faith Estimate to four pages, allow lenders to use an average cost of pricing for settlement services, and require settlement agents to recite a 45-minute closing script to each borrower.

The rule would also require the settlement agent to stop the closing if a certain category of settlement costs comes in at more than 10 percent above the estimated costs of the Good Faith Estimate.

Closing Script Misguided

Some critics say the closing script, in particular, is misguided and shows that HUD is unfamiliar with how closings take place in different parts of the country. In much of the West, for example, closings are typically done without the principals meeting in person, making the recitation of a script problematic.

The requirement also raises concerns in some states about whether the settlement officer’s recitation of the script amounts to the unauthorized practice of law. A number of practical questions arise as well, including the time involved in reciting the script and answering questions.

For settlement providers, which typically concentrate their closings at the end of the month, the additional time could reduce the number of closings per day. This reduction could cut business in half for smaller providers.

Too Much Flexibility for Good Faith Estimate

Some critcs don't agree with the government's idea of allowing lenders to provide an average price for their services on the Good Faith Estimate when other types of service providers aren’t given that flexibility. Then there's the unanswered question of whether a closing must be halted for even small deviations from cost estimates.

Panelists also said it would take millions of dollars and thousands of hours to convert their computer systems and office procedures to the new system, an unneeded burden during today’s challenging real estate market.

Still Time to Comment on Rules

HUD extended the comment period on the rule until mid-June at the request of more than 100 U.S. House lawmakers. These members of Congress sought the extension after NAR and other industry groups called HUD’s original 30-day comment period inadequate for such a sweeping rule change.

Discussing the rule before several hundred REALTORS® were Phillip Schulman, a Washington attorney with Kirkpatrick & Lockhart Preston Gates Ellis LLP, noted for his RESPA expertise; Ed Miller, director of government affairs for the American Land Title Association; and Ken Markison of the Mortgage Bankers Association.

By Robert Freedman for REALTOR® magazine online

MY TAKE: This one is easy. This will kill competition because the small companies will find it difficult to stay in compliance. The big companies, facing less competition will charge more for their products. They will also have to charge more in order to beef up their compliance departments.

The result is going to be a costlier loan process. Plain and simple. If this rule change goes into effec remember this post and remember when I said the cost of borrowing money would go up. I'll try hard not to say, "I told ya so."

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell
kwade@ccmclending.com

Don Henley Said It Best We Love Dirty Laundry

2008-06-30T11:18:00.002-06:00

Bad news sells. Period.

Look, if you want to highlight the negatives, here it is: Since last year, home prices are down.

Duh. But, if you want to look at the positives, take a close look at this chart. It's doctored up a bit, but taken directly from the S&P/Case-Shiller Home Price Index report. April is the second straight month we've seen improvement like this.

The papers want to tell you that the housing market is dismal, but talk to any real estate agent you know and they'll tell you the same thing: The market just feels different right now. Homes are selling and the media's got it wrong.

Source: The Mortgage Reports

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

kwade@ccmclending.com

Let The Lawsuits Begin - Countrywide

2008-06-27T06:05:00.000-06:00

LOS ANGELES (AP) -- Countrywide Financial Corp. is accused of using misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn't fully understand, in a lawsuit filed Wednesday by the California attorney general's office.
The lawsuit - filed on the same day Countrywide shareholders were scheduled to vote on the company's takeover by Bank of America Corp. - stems from information gathered under subpoena after the state launched a probe last year into the troubled company's business.
It also came on the same day the Illinois attorney general was filing a lawsuit alleging that Countrywide engaged in "unfair and deceptive" practices to get homeowners to apply for risky mortgages far beyond their means.
In the complaint filed in Superior Court, California Attorney General Jerry Brown asserts that Countrywide violated the state's unfair business practices and false advertising laws with just about every action it took to generate and market some of the most popular - and potentially risky - types of home loans in recent years.
"Defendants viewed borrowers as nothing more than the means for producing more loans, originating loans with little or no regard to borrowers' long-term ability to afford them and to sustain homeownership," the state claims in the suit, which also names as defendants Countrywide Chairman and CEO Angelo Mozilo and David Sambol, the lender's chief financial officer.
Countrywide (CFC, Fortune 500) did not immediately return a call seeking comment.
The state claims the company misled customers about the workings of home-equity loans and some types of adjustable-rate mortgages, including pay-option loans, "hybrid" interest-only loans and low-documentation loans.
These loan types, which many other lenders offered during the housing boom, featured low initial payments and the potential for sharp increases after a few years. They now account for a large portion of the mortgages that have become delinquent or gone into default in the past year.
The lawsuit alleges Countrywide obscured the potential risks in the loans, misled consumers about payment terms, prepayment penalties and other obligations, and told borrowers they would be able to refinance before the interest rate on their loans adjusted.
"Defendants knew, or by the exercise of reasonable care should have known, that these statements were untrue or misleading at the time they were made," the lawsuit states.
As the nation's largest mortgage lender and servicer, Countrywide has been under scrutiny by federal and state authorities. It also faces numerous other lawsuits related to its lending practices.
The Calabasas, Calif.-based lender agreed in January to sell itself to Bank of America (BAC, Fortune 500) for about $4 billion in stock. The acquisition, now valued at around $2.8 billion, received clearance from the Federal Reserve earlier this month.
Assuming shareholders give their approval, Charlotte, N.C.-based Bank of America has said it could close the deal as early as July 1.

MY TAKE: This is really not a surprise. With the size of the comapny and the meltodown of the mortgage market Countrywide has a big bullseye on them and every attorney general in the country is eyeing them (If Elliot Spitzer hadn't left to become Governor of New York and then been wrapped up in the call girl scandal he would have been the first to sue.)

Illinois has also filed a lawsuit against Countrywide. Their buy out by Bank of America is in jeopardy and to top it all off there is a lot of negative press about some potential sweetheart loans that Countrywide provided to politicians on key commitees. What's next? Maybe I shouldn't ask.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

4 Steps To Recovery

2008-06-26T05:41:00.000-06:00

By Shawn Tully, editor at large

NEW YORK (Fortune) -- The news that housing starts have fallen to their lowest level in 17 years sounds like one more reason to be depressed about the shrinking value of your home. In fact, it's an almost certain sign that the path to a housing recovery is finally in sight.
If prices are going to stabilize, let alone rebound, the United States needs to produce far more first-time home buyers than new houses. That's the only way to tame the glut of "For Sale" signs dotting front yards from the Inland Empire of California to the Gold Coast of Florida.
Builders constructed far more homes from 2002 until 2006 - the peak bubble years - than could possibly be absorbed by the normal growth in households.
As a result, the market is now swamped with one million new and existing homes for sale that aren't occupied, and hence need to sell quickly. That's a multiple of the figure in most downturns, and it testifies to the duration and girth of the bubble.
"For the recovery to begin, builders need to eliminate the standing inventory of finished, unoccupied new homes," says Mike Castleman, founder of Metrostudy, which assembles sales data on four million subdivisions across the U.S.
The massive overhang of unsold inventory has remained stubbornly high. Sure, builders cut back, but sales dropped just as quickly.
Now that excess supply is finally beginning to shrink. In April, the number of new homes for sale stood at 456,000 according to the U.S. Commerce Department, still a big number, but 93,000 below the mountainous figure a year ago.
The return of the first-time buyer
The key player in any recovery scenario is the first time buyer. The housing market operates with a pronounced laddering or ripple effect. When entry-level buyers flood the market, they not only stimulate production of new homes, they purchase existing homes. Those purchases, in turn, allow the sellers to move up to bigger houses.
But when the first-timers are absent, the entire buying chain gets frozen.
Today, newbies are coming back. Why? For the first time in years, entry-level homes are affordable. Builders have slashed prices, and what they're building tends to be far smaller than the McMansions of the boom, selling for far lower prices. KB Home's average selling price dropped to $248,0000 in its February quarter, versus $267,000 a year earlier. In 2006, KB's basic model in Victorville, Cal., a former boomtown east of Los Angeles, took up as much as 3,800 square feet and sold for $328,000. Today, its stripped down offering goes for $220,000, at less than half the size.
So the first time in a decade renters can carry the mortgage payments and taxes on a new house for what they're paying a landlord. Call it the New Affordability.
Here's how the numbers play out: Single-family housing starts are now running at fewer than 500,000 a year. The normal demand for housing, based on immigration and household formation, is around one million units.
We won't get back to that figure for a while because so many people rushed to buy homes during the boom.
But with first timers returning, sales should rise to almost 700,000 units by the end of next year, according to Bernard Markstein, senior economist for the National Association of Homebuilders. That means sales will soon exceed new production by as much as 250,000 units a year.
That margin forms the foundation of the housing revival that comes in four steps.
Step 1: First, the return of first-time buyers will shrink the overhang of new houses for sale.
Step 2: Second, because so few new homes are being built, first-timers will start buying existing homes from owners who want to move up but have been trapped by the dearth of buyers. Their improved fortunes, though, come with a big caveat: The prices of new homes are now lower than comparably-sized existing homes. It's as if used cars are selling for more than new ones. That can't last. So move-up buyers are going to have to accept less than they had hoped to get for their current homes.
They'll get a big break as they trade up, however. Unless they bought at the height of the boom, they'll still sell at a profit. They can then use that equity to buy bigger homes at bargain prices. During the bubble, homebuilders started pushing up home sizes to 3,500 square feet or more. It's those behemoths that are selling for the steepest discounts today.
Step 3: Next, housing starts should start rising, probably next year. The increase, however, will be slow and gradual. For the next two years at least, homebuilders will compete ferociously with existing home sellers for customers.
Step 4: Eventually, the glut of existing homes will disappear as well. The excess of new-home buyers over new homes being built makes that inevitable. But the oversupply is so enormous that the healing process could take as much as three more years. Only then will prices in former bubble markets start rising again.
What could go wrong?
One event has the potential to slow or even derail the recovery: A sharp rise in interest rates. Right now, the first-timers are gorging on 6% loans guaranteed by the FHA. But rates may not stay there.
If they rise to 8% or higher because inflation rebounds, it would take a far bigger drop in prices to make new and existing homes affordable.
The New Affordability is now in place. But if rates rise, we'll have to establish a New New Affordability - at even lower prices

MY TAKE: Even though this article refers to the national recovery the slow down locally has been due, in large part to the overwhelming negative trend in national real estate news. Maybe some positive news can reverse some of that negativity.

The most important part of this article is the last paragraph or two where the author talks about rates. If we see this continued rise in rates then we will almost certainly see the slowdown continue. I helped an investor purchase a new primary and he commented that this was the first loan he had taken out that had a rate over 6%. The rise in rates has all but killed the jombo market. Imagine what a 2%+ jump in rates will do to the conforming loan market.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Building Permits Down In Mesa County

2008-06-25T05:26:00.002-06:00

By MIKE SACCONEThe Daily Sentinel
Monday, June 23, 2008

Even as the energy industry keeps northwest Colorado’s economy afloat, economic forecasters for the state are tracking trouble for the region’s homebuilders and contractors.

According to the Colorado Legislative Council, the number of building permits issued in Mesa County fell 31.2 percent during the first four months of 2008 compared to the same period last year.

The number of permits issued in Montrose County fell 57.2 percent during the same period.

David Myers, president of the Western Colorado chapter of the Association of Building Contractors, said the building slowdown has resulted from financial institutions cutting back their lending to builders across the region.

“The real problem we’re seeing right now is you need the startup capital to get these projects going, and right now it isn’t there,” Myers said.

The governor’s Office of State Planning and Budget estimates the building slowdown will be exacerbated by a decline in second home sales to non-Coloradans.

“Fewer people will be able to travel to or buy second homes in Colorado,” the report said.

MY TAKE: Anyone who tries to tell you that this is a negative story is trying to sell you something. There is a glut of inventory right now and we need some balance in our market in order to keep it healthy. Building permits hit record highs in places like Vegas, Florida and Arizona before those markets crashed. Too much inventory will kill the goose that laid the golden egg. This dovetails with a national story today that claims building permits are at 17 year lows. It's all part of the market correcting itself.

Now we need to hope that the government doesn't get around to "fixing" this market before the market fixes itself.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

30 Year Rates At 9 Month Highs

2008-06-24T06:28:00.000-06:00

NEW YORK (CNNMoney.com) -- Rates on 30-year fixed mortgages have surged a tenth of a percentage point to a 9-month high on growing concerns about inflation, mortgage backer Freddie Mac said Thursday.
Freddie Mac (FRE, Fortune 500) said 30-year fixed-rate mortgages averaged 6.42% with an average of 0.7 point in the week ending Thursday, up from 6.32% last week. Last year at this time, the 30-year loan averaged 6.69%.
The last time the 30-year fixed rate mortgage was higher was the week ended Sept. 6, when it averaged 6.46%, according to Eileen B. Fitzpatrick, a Freddie Mac spokeswoman. "Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May's consumer and producer price indexes, both of which showed stronger levels of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.
"Additionally, consumer prices rose 0.6% last month, the most since November 2007, and traders began to fully price in a Federal Reserve rate hike by the end of September, based on the federal funds futures market," he added.
For rates to stop climbing and start to ease, "we would have to see some settling of inflation pressures - notably a leveling, if not outright decline, of food and energy costs," said Keith Gumbinger, vice president of HSHAssociates.com, an online publisher of consumer loan information.
While inflationary pressure is pushing interest rates higher, it's also pushing buyers out of the market and home prices down, said Gumbinger.
"Interest rates were about this level - give or take - last year, but home prices were considerably higher," he said. "Rates may not be lower, but your home prices may be lower."
The 15-year fixed-rate mortgage this week averaged 6.02% with an average 0.7 point, up from last week when it averaged 5.93%. A year ago at this time, the 15-year FRM averaged 6.37%. The last time the 15-year FRM was higher was the week ending Oct. 18, when it averaged 6.08%.
Five-year adjustable-rate mortgages (ARMs) averaged 5.89% this week, with an average 0.6 point, up from last week when it averaged 5.70%. A year ago, the 5-year ARM averaged 6.31%. This is the highest the 5-year ARM has been since the week ending Dec. 27, when it averaged 5.90%.
One-year Treasury-indexed ARMs averaged 5.19% this week with an average 0.6 point, up from last week when it was 5.09%. At this time last year, the 1-year ARM averaged 5.66%.
"The housing market still struggles. New construction of single family (1-unit) homes fell in May to the weakest pace since January 1991 and April's starts had a downward revision," added Nothaft.

MY TAKE: This is no surprise. Rates continue to climb and I think we will continue to see a steady increase in rates as the economy continues to falter. Inflation means the death of cheap money and with oil at $136 a barrel, gas at $4.00 a gallon and almost every commodity trading in record ranges it's easy to see that the cost of nearly everything is (or will be) going up.

Rates don't typically climb straight up. They go up, they pull back, they go up, they pull back. It just climbs a little higher each time and before you know it rates have gone up a full percent in less than 6 months. Sound familiar?

Get your business ready for higher rates because as high as they are now, they are headed higher.
Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

So You Wanna Be A Landlord?

2008-06-23T05:50:00.000-06:00

Home owners who are having a tough time selling their homes face a hard decision – should they drop the price in hopes of attracting a bargain hunter, or should they find a renter and hold on until prices go back up?

Benny L. Kass, real estate attorney and columnist for the Washington Post, offers these reasons why selling now is better than waiting it out.

Tax implications. Living in a home has its tax benefits. A home owner who has lived in a house for at least two of the five years before it is sold and files a joint income tax return can exclude up to $500,000 of the gain from taxation. Single people can exclude up to $250,000.

Tenants can make a sale tough. Some tenants don’t keep a home in the same condition as an owner would. Also they may not cooperate with showings, even if the lease says they must.

Being a landlord can be a challenge. Calls in the middle of the night with demands to repair the toilet are tough.

Carrying costs are daunting. Some months the house will be vacant, but the owner still has to pay the mortgage, real estate tax and insurance. Maintenance bills don’t stop either.

No one has a crystal ball. The real estate market may take a long time to recover.

Source: The Washington Post, Benny L. Kass

MY TAKE: I have several rental properties and I can tell you from firsthand experience that it can be challenging. I'm not saying it doesn't have it's rewards, but having tenants can sometimes feel like you are standing in the middle of a Vegas casino... They won... You lost... And your pockets are empty! Can I get an "Amen"?! You owe it to your sellers to explain the rental process, good and bad, even if it means you come off sounding like a salesman (which you are). There are a lot of good investment property classes out there, look into it and book a class. You will learn a lot and it's a nice write off come tax time.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

7 Tips If You Know Anyone Facing Foreclosure

2008-06-20T05:39:00.000-06:00

Jacob Benaroya, president and managing partner of Biltmore Capital Group, which purchases distressed loans from a wide array of lending companies, offers these seven tips for home owners facing foreclosure.

Don’t hide. Open the mail; answer the phone. Respond.

Be proactive. Contact the bank or lending institution and discuss your financial situation.

Know your mortgage rights. Review loan documents so you know what your lender may do if you can't make payments.

Avoid foreclosure prevention companies. Don’t pay money for foreclosure advice..
Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. They’ll help you understand the law and your options, organize your finances and represent you in negotiations with your lender if assistance is required.

Prioritize spending. After health care, keeping your home should be your first priority. Review your finances and see what spending can be cut in order to make your mortgage payment. Look for optional expenses - cable TV, memberships, entertainment - that can be eliminated. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

Use other assets. Do you have assets such as a second car, jewelry, a whole life insurance policy-that can be sold to help reinstate the loan? Can anyone in the household bring in additional income?

Source: Biltmore Capital Group

MY TAKE: I hope you never know anyone who needs this advice, but if you do this is some solid information. I have done a lot of work on the front range and have seen many people lose their home to foreclosure. Sometimes it can be prevented and sometimes it can't, but every option should be explored. Again, I hope you never need it, but here it is anyway.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Are You Growing In This Changing Market?

2008-06-19T06:00:00.000-06:00

Take some risks with your marketing, promote yourself everywhere, and be unique. Those were key messages from real estate trainer Terry Watson, who spoke at last week's REALTORS® Midyear Legislative Meetings about how to gain an edge in your marketplace.

“With 1.3 million real estate professionals, most of our advertising looks exactly the same,” said Watson, also a broker for his family’s real estate company in Chicago. But to get that word-of-mouth advertising that every practitioner should crave, Watson said it takes being bold and different.

Watson highlighted some of the following ideas to give your marketing more impact:

Speak to customers’ desires. Don’t ask customers: “How did you hear about me?” Instead, you should be more interested in learning “What did you hear about me?” This will give you insight into why exactly they came to you and you’ll be able to better tailor your marketing to what is most important to your customers.

Go green. Being environmentally friendly is important to younger generations and it’s a popular topic of today’s media. Watson encouraged attendees to use it in their marketing and to earn their Ecobroker designation.

Use better words. Customers don't care much about marketing that tells them you’re in the million dollar club, how long you’ve been in the business, and other “me” types of promotion, Watson said. They care about how you can help them. So statements like “I sold 200 units this year” would have more impact if you said “I helped 200 families move into new homes.” Also, use words to your advantage. For example, when you tell customers that they will be working with your “assistant,” it makes it sound like you are passing them off to someone insignificant, Watson said. Instead, call your assistant a “specialist” or “partner.” Also, use the word “bought” in replace of “sold” and “new price” instead of “price reduced.”

Beef up your Web site. Include your Web site’s URL everywhere, including your voicemail, name tags at conferences, your e-mail signature, and your personal and business checks. Buy all domain names for common misspellings of your name. And give customers reason to keep coming back to your site: Have a recommended reading list of books, quotes of the day, humor section, photo gallery, and an area for testimonials from your customers, Watson recommends. Make sure your Web site has energy in its design

Establish yourself as an expert. Write a book or a white paper. For example, you are trying to convince a customer who is facing foreclosure to work with you. Why would they want to? “I wrote the book on foreclosures!” Watson said. Or, if a book is too grandiose of an idea for you, write 10-15 pages on a subject for a white paper (possible topics: foreclosure, how to purchase a property, or expired listings).

Take advantage of NAR's free resources. The Library section of REALTOR.org offers free access to eBooks and ProQuest, which you can use to scan real estate books, magazines, and journals. Also, downloadable NAR brochures can help you be a resource to your customers in learning about mortgages and other homebuying and selling issues.

Get on social networking sites and blog. Be on Facebook, YouTube, Plaxo, MySpace, and LinkedIn. These social networking sites, when used for business purposes, can help promote yourself and elevate you higher on search engines, Watson said. Also, Watson encouraged practitioners to have a blog to build community on their Web site. Get inspired for blog posts by doing a search of what other real estate blogs are covering, highlight community events, or talk about common problems that you run across in your business (such as buyers continuously making lowball offers).

Always be marketing. “Everything is a marketing opportunity,” Watson said. The back of a business cards is often one of the most forgotten marketing spaces with most business card backs blank, Watson said. He recommended using the back of your business card to put a quote, a selling or buying tip, or motivation to visit your Web site (e.g. “To view, an article on ‘7 mistakes buyers and sellers make’ visit … ).

Have more fun. Be more upbeat and use humor in your marketing to get attention and make yourself memorable. “Start having more fun,” Watson told the crowd. “It tells customers you are in more control of your market, and it’ll make customers want to work with you.”

Source - Melissa Dittmann Tracey for REALTOR® magazine online

MY TAKE: I love posts like this. They make me have to write less! This is a great article and should serve as a reminder that no one has ALL of the answers. You are either green and growing or ripe and rotten. How are you growing your business in this changing market? Is your marketing plan to hope or are you being aggressive with generating lots of fresh leads? Some Realtors believe that a mortgage lender is a necessary evil, always with their hand out, but the successful agent view their lender as a business partner. Do you have a business partner? Someone with a vested interest in seeing you succeed? If so, you are fortunate. If not, call me and let's talk.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Rate Talk

2008-06-18T08:33:00.003-06:00

Rates have shot up recently and the treasuries (this is overly simplified, but treasuries drive rates) have broken through all of their moving averages. There isn't a concensus as to what rates will do, but right now we are not locking. My best guess would be that higher rates are headed our way, but I am looking for a pull back short term.

Take that with a grain of salt. If I really knew what treasuries were going to do I wouldn't be telling you. I would be eating tropical fruit on the white sand beaches of my own private island... Plotting my next big play in the market.

That said, we take rates seriously and follow the market very closely. If you want to talk rates, mortgage or market conditions call me any time. You can also call me any time to talk hunting, fishing or sports.

Looking forward to talking to you soon.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Foreclosures, It's Going To Be Okay

2008-06-17T09:17:00.002-06:00

RealtyTrac's May 2008 foreclosure report looks terrible in the papers, but there's good reasons why we don't get our news from the headlines only.

A deeper look at the data shows that the whole country is not being impacted equally.

1) California is home to 8 of the 10 most foreclosure-heavy cities in the country
2) Just 4 states accounted for more than half of the country's foreclosure activity
3) Many states -- including Ohio -- showed a reduction in foreclosure activity

But of all of the interpretations, it's most astounding that the Pareto Principle is still (pretty much) in effect -- 80 percent of foreclosure activity was tied to just over 20 percent of the states.

MY TAKE: As a whole, this would indicate that the majority of the country is avoiding the foreclosure crisis. When you watch the news and listen to the pundits it's easy to believe that everyone is in bad shape. It's more important than ever to realize that a lot of the foreclosure mess is regional, but the news is national. Pass along this tidbit of information to clients who think that the sky is falling. In some places it is, but in Grand Junction we are having a very normal, very healthy correction.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Property Flipping Is OK - For Now - UPDATED

2008-06-16T10:09:00.001-06:00

UPDATED: We are unable to verify this story with HUD. For now it would appear that the flipping rules are in place. I will keep you updated with any changes as soon as they can be verified. Thank you, Kevin

WASHINGTON (AP) -- The Bush administration is temporarily suspending a 5-year-old rule intended to deter property flippers, as part of an effort to help speed the sale of foreclosed properties.
For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans.
The policy was put in place in 2003 to deter property "flipping" schemes, in which buyers are overcharged for foreclosures or other distressed properties. But the surge in vacant properties resulting from borrowers who were unable to afford their mortgages has become a far more pressing concern.
"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," FHA commissioner Brian Montgomery said in a prepared statement.
The new policy "will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes," Montgomery said.
Nationwide, 261,255 homes received at least one foreclosure-related filing in May, up 48% from the same month last year, and up 7% from April, foreclosure listing company RealtyTrac Inc. said Friday.

MY TAKE: Flipping brought us down and flipping will set us free! Not so sure that this is the answer, but it would seem to me that a lot of business minded buyers might invest in a property if there is a chance they won't have to hold it 12-24 months in order to make a profit.

Kevin Wade
Cherry Creek Mortgage Company
970-201-2310 Cell
970-243-7800 Office

More Rate Cuts Unlikely

2008-06-16T06:49:00.001-06:00

Federal Reserve Chairman Ben Bernanke says it’s unlike the Fed will cut interest rates any further this year. Bernanke, who spoke Tuesday via satellite to an international monetary conference in Spain, said inflation is the bigger concern at the moment.

The Fed's aggressive rate-cutting campaign has contributed to a lower value of the U.S. dollar. That, in turn, has contributed to increases in the price of imported goods and in consumer prices.

"Households continue to face significant headwinds, including falling house prices, a softer job market, tighter credit, and higher energy prices," Bernanke said.

Source: The Associated Press, Jeannine Aversa (06/03/2008)

MY TAKE: It's about time. All I ask is that they not turn right around and start raising rates. I am no economist, but I know I haven't liked what the fed has done for the better part of Barnanke's reign. I had issues with Greenspan too, but that's another post.

Kevin Wade

kwade@ccmclending.com

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

FHA Fights To Kill Down Payment Assistance

2008-06-13T06:02:00.000-06:00

The Federal Housing Administration has reopened public comment on its proposed rule to ban seller-assisted downpayments on federally insured mortgages.

The loans FHA would like to eliminate because of their high foreclosure rates are usually funded by a charity and then reimbursed by the home seller. These deals generally help low-income buyers.

Scott Syphax, chief executive of Nehemiah Corp. of America, one of the nation's largest down-payment-gifting groups, says the program is key to homeownership among working families.

"We will use all legal means at our disposal in order to protect this portal to homeownership for the families who are underserved in an ever-worsening credit market," he says.

Source: The Wall Street Journal, Michael Corkery and Michael R. Crittenden

MY TAKE: A lot of people don't know that there are programs out there that include seller paid down payment assistance (DPA). This amounts to "no money down" loans without the typical constraints of using CHFA. I'm not knocking CHFA, the service they provide is essential to certain buyers. I'm saying that they don't always fit the needs of our customers. I won't say that ridding the market of seller paid DPA will be good or bad, but I don't know that it is right for the only DPA programs to be income based.

On the other hand... The DPA programs are a manipulation of the system and amount to 100% pricing by tweaking the purchase price of the home. Something else to consider is this... If a buyer doesn't have $10,500 do they really need to be taking out a loan for $350,000. Call me crazy, but if a person has nothing into the house it's easier to walk away from that house. Am I wrong?

I'd love to hear your thoughts on this. kwade@ccmclending.com

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Buffett Is Doing His Part

2008-06-12T07:14:00.000-06:00

Berkshire Hathaway, the insurance and investment company chaired by Warren Buffett, the world’s wealthiest man, has bought portfolios of subprime mortgages and frozen their rates.

Buffett, who spoke at Berkshire Hathaway’s annual meeting Sunday, said Clayton Homes, a unit of Berkshire that makes and provides financing on manufactured homes, purchased the subprime mortgages. Clayton sent letters to all the borrowers involved telling them the interest rates wouldn’t reset higher.

"We're not in the business of resetting mortgages higher," Buffett said.

Source: Dow Jones Business News, Alistair Barr

MY TAKE: Who is this guy Buffett? Acting like he knows anything about business?? I predict he will be broke and out of business in under 12 months doing crazy things like this!

Okay, enough joking. If the other lenders would have just frozen the rates on their ARM's or minimized the adjustments we would still have some significant weakness, but we wouldn't be staring down the barrel of the most significant economic downturn since the 70's and possibly even the 20's and 30's.

I'm not being soft on the people who signed the notes, but if you look at it from a business standpoint, had the lenders frozen the ARM's, the borrower would have had a better chance of making the payment. As a result, a flood of foreclosures wouldn't have suffocated the market and you would hear abut something other than the credit crunch when you watch Squawkbox or Mad Money with Jim Cramer.

A guy can dream, right?

Kevin Wade
kwade@ccmclending.com
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Want To Sell Foreclosures?

2008-06-11T07:39:00.005-06:00

ELLICOTT CITY, Md. (CNNMoney.com) -- For many real estate agents, these aren't exactly the best of times. Don't put David McIlvaine in that category.
The suburban Baltimore broker just had his best first quarter ever. With his business tripling over the past year, McIlvaine recently had to hire another staffer and buy more file cabinets just to keep up with the crush of work.
What's the secret to his success?
McIlvaine specializes in selling foreclosed properties. It's one of the few booming sectors in a deeply troubled housing market.
"Everyone else is suffering, but I'm smiling ear-to-ear... inside, of course," he said. "I feel a certain amount of guilt."
With home sales plummeting, many real estate agents have seen their business dry up. Existing home sales in April came in 17.5% lower than the year before, while new home sales plummeted 42%.
And when they manage to close a sale, agents often are earning smaller commissions because of falling home prices. Single-family homes posted their largest recorded year-over-year decline of 7.7% in the first quarter, reducing the amount of income the largely commission-based agents earn.
These trends are forcing people out of the business. The number of National Association of Realtors members dropped in May to 1.25 million, down 6.4% from the end of 2007.
Agents specializing in bank-owned property, however, often have more work than they can handle. More than 1 million homes are in foreclosure, the highest rate ever recorded, the Mortgage Bankers Association said last week. Agents are signing up in droves to join the National REO Brokers Association, which focuses on real-estate owned properties, as foreclosed homes are known. The Henderson, Nev.-based group used to receive about 100 applications a month. Now it's averaging 400 a month.
Selling foreclosed property doesn't require any special licenses, but it does take connections, coordination and cash. It's hard for newcomers to break into the business since banks tend to list homes with agents they know or those with several years of experience.
REO brokers essentially serve as property managers, making sure the homes are cleaned and maintained. Since the homes are vacant, the agents have to visit regularly to ensure the grass isn't too high, the pipes haven't burst and vandals haven't broken in. And they have to keep on top of the mountains of paperwork generated by this care.
All this requires deep pockets since the agents have to cover the cleaning and maintenance of the properties - which can run into the tens of thousands of dollars - until the bank reimburses them.
The REO business "is very sexy right now," said McIlvaine, 54. "There are agents who want to break into it, but banks want veteran agents to handle it. They don't have time to train new agents."
Breaking into the business
McIlvaine, who had managed department stores before shifting to real estate in 1992, entered the REO arena more than a decade ago. A friend suggested he start doing broker price opinions, which are quick, drive-by appraisals on homes owned by people behind on their mortgages. McIlvaine jumped on the opportunity, figuring it would give him more contact with lenders and new sources of listings.
"If you did well with the appraisal and the house went into foreclosure, they'd give you the listing," said McIlvaine, who works with his wife, Bonnie, and son, Dave Jr., and is affiliated with Keller Williams Select Realtors in Ellicott City.
Until a year ago, foreclosed properties were a steady, but small, portion of the business, accounting for about 30% of listings. Most were row houses in Baltimore with an occasional single-family home in the suburbs.
All that changed in June 2007, when foreclosure filings started to rise. Lenders threw more and more properties his way so his listings swelled to more than 30, up from a dozen, with three-quarters being foreclosed homes. Maryland has the 6th highest rate of foreclosure filings per household in the country, according to RealtyTrac, though McIlvaine thinks that number is a bit high.
The types of homes in foreclosure changed, too. While he still has row homes selling for $50,000 in Baltimore, McIlvaine also has a $720,000 year-old home in Anne Arundel country. Foreclosures are hitting people in every socio-economic strata, he said.
No matter where it's located, prepping a foreclosed home for sale is hard work. The first step is making sure the home isn't occupied. He'll often poke around the property at 5:30 a.m., looking to see whether mail is piling up or cars are in the driveway. He'll also talk to neighbors and check with the utility to see whether the electricity has been turned off.
More often than not, McIlvaine arrives to find a house abandoned. But sometimes he's confronted by angry owners and their dogs. In some cases, lenders will authorize him to give the homeowner cash as an incentive to hand over their keys.
Even vacant homes can yield nasty surprises. One time, for instance, he had to force open the front door, only to find that a burst pipe had caused the living room floor behind it to buckle.
"It can be dangerous and it's definitely exciting," said McIlvaine, who had served as a sergeant in U.S. Air Force and started his retail career in security. "Your adrenaline is flowing as you are checking the house. You don't know what to expect."
Once the home is vacated and the locks are changed, McIlvaine can spend thousands of dollars cleaning it up. He leaves it to the sheriff to dispose of what's deemed the homeowner's personal property, while hiring contractors to haul out the trash. He never ever opens the refrigerator, a lesson he learned the hard way after looking in a freezer filled with rotten fish.
His office is filled with files detailing when houses were checked and sealed, in what condition they are in and whether electricity was restored. Photos back up the notes. On a separate shelf are piles of bills from Baltimore Gas & Electric, as well as local locksmiths, lawn service firms and cleaning companies.
Dealing with foreclosed homes suits McIlvaine, he says, because he says he prefers dealing with paperwork over people - though he's pretty chatty and serves on several real estate boards. Still, he leaves the staging and showing of traditional properties to his wife and son, while he handles the listings.
Foreclosure doesn't equal deep discount
Once the house is ready to go on the market, McIlvaine has to recommend a listing price to the bank based on the condition of the home and recent sales in the neighborhood. The majority of properties are sold "as is," though McIlvaine might do a more thorough cleaning and make some repairs on high-end properties to make them more marketable.
During the housing boom, most foreclosed homes were bought by investors who renovated and sold them for a profit. Nowadays, the appointments are more often with people looking to fix up the house and live in it.
But, he warns, potential buyers shouldn't expect foreclosed properties to sell at a hefty discount. In fact, he now sees the same bidding wars on REO homes that he used to see on traditional properties.
"The mere word foreclosure elicits a sense of "deal," McIlvaine said. "But banks are not giving it away."
While some may think REO agents profit from people's misfortune, McIlvaine sees his job as a way to remove a blight from a community.
"Our goal is to get the house sold and get it back as a productive piece of property in the neighborhood," he said.

MY TAKE: I am VERY thankful that we have so few foreclosures in the Grand Junction area. I hear Realtors asking what they can do to grow their business and this is one way. There are agents who have made comfortable livings listing foreclosures. You will never have a more motivated seller, so why not try to break into the business of working with the banks?

How many other lenders are telling you this kind of stuff? I'd love to hear from you. If you have any feedback or would like me to blog about a specific subject call me or send me an email at kwade@ccmclending.com.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Mortgage Delinquencies Hit Record

2008-06-10T07:13:00.003-06:00

Foreclosures and mortgage delinquencies both continued to rise during the first quarter of 2008, hitting their highest levels since record-keeping began in 1979, according to the Mortgage Bankers Association.

The seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.35 percent of all loans outstanding at the end of the first quarter of 2008 on a seasonally adjusted (SA) basis, up 53 basis points from the fourth quarter of 2007, and up 151 basis points from one year ago, according to MBA’s National Delinquency Survey. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.

The percentage of loans in the foreclosure process was 2.47 percent at the end of the first quarter, an increase of 43 basis points from the fourth quarter of 2007 and 119 basis points from one year ago.

While these numbers seem disturbingly high, experts note that certain states and certain types of loans are skewing the national figures upward. Specifically, most of the problems step from prime and subprime adjustable-rate loans 60 and 90 days past due in California and Florida.

The 30-day delinquency rate is still below levels seen in 2002.

“The problems in California and Florida are extraordinary and they are the main drivers of the national trend,” said Jay Brinkmann, MBA’s Vice President for Research and Economics.

The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24 percent. This rate, combined with Florida’s rate of 8.25 percent, drove up the national average foreclosure start rate to the point where 43 states were below the national average of 6.32%.

California saw a total of approximately 109,000 foreclosure starts and Florida 77,000. The next highest states were Texas, Michigan and Ohio with between 24,000 and 20,000 each.

About 20 states had drops in their number of foreclosures started, including Michigan, Ohio and Indiana where problems have been the most severe for the last several years, Brinkmann said.

Source: The Mortgage Bankers Association (06/06/2008)

MY TAKE: Some places have seen the worst of it, but as a whole, this is going to get worse. If you think $4.00 gas won't have an impact on people already struggling to keep their heads above water, you are crazy.

The answer? Let the market work it out. Let the banks get creative and work out deals for strapped sellers. It will be much easier and more consumer friendly than what the Governor of Minnesota proposed, a one year moratorium on foreclosures. How many banks will want to lend in a state where, if the borrower can't make their payment, the lender has no recourse? You think mortgage companies will give people in Minnesota the same rates they offer across the rest of the country?

The market is correcting itself and it will be painful, but it is necessary. You can do very little to control the market conditions in which you work. You can only control HOW you work in your market. The market is changing, is your business plan changing with it? Call me for some ideas.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

IRS Targets The Self Employed Once Again

2008-06-09T09:11:00.003-06:00

IRS Targets Cell Phone Usage

Self-employed people inevitably have equipment such as cell phones, computers, cars and other assets that they use daily in their business and, frequently, for personal use as well. A perpetual challenge they face is differentiating between the business use of these assets and personal use. The Internal Revenue Code identifies cars, computers and other electronic property as "listed property" and requires that self-employed individuals and individuals whose employers provide listed property assets keep records of their personal and business use of those assets. Expenses incurred for these assets are deductible if they are used for business purposes; expenses related to personal usage are not.

A recent Tax Court case examined the business practices of a self-employed person with respect to cell phones he used and that he provided for an assistant. The Court disallowed his deductions because he could substantiate neither his own nor his associate's business and/or personal use of cellphones. This holding has caused significant turmoil for employers, their employees and the self-employed.

Congressman Sam Johnson (R-TX) has introduced legislation that would remove cell phones from the category of "listed property" (H.R. 5450) and thereby eliminate potential IRS challenges. The bill has substantial bipartisan support, but was not included in legislation recently reported from the House Ways and Means Committee. Senators Kerry (D-MA) and Ensign (R-NV) have introduced a similar bill (S. 2668) that is cosponsored by a bipartisan majority of the Senate Finance Committee (and several other Senators, as well). The Finance Committee will likely craft a tax package before the July 4 break. NAR is participating in a very broad-based coalition to assure that this relief provision is included in whatever bill emerges.

MY TAKE: What can I say? I understand that the IRS enforces the lawas that are on the books, but please... Change this law. Is tax time not difficult enough without having to go through your cell phone bill with a highlighter, a pen and a calculator? Every Relator needs a good accountant! Ask your coworkers who they use and make an appointment...

Kevin Wade
Cherry Creek Mortgage Company

Cherry Creek Is Growing

2008-06-06T08:17:00.001-06:00

Cherry Creek Mortgage is expanding. In the last six months we have brought on three additional employees and are currently looking into purchasing/leasing office space.

It's exciting to be a part of something that is growing when across the board, mortgage lenders are struggling and even going out of business.

If you are happy with your lender, that's great. If not, give me a call and let's find out if we could be a good fit for your business.

Kevin Wade
kwade@ccmclending.com
243-7800 Office
201-2310 Cell

Foreclosures Top One Million - Must Read

2008-06-05T09:12:00.003-06:00

NEW YORK (CNNMoney.com) -- More than one million homes are now in foreclosure according to a trade group, showing that the housing crisis is growing worse.
The Mortgage Bankers Association's first quarter report showed that a record 2.5% of all home loans being serviced by its members are now in foreclosure, which works out to about 1.1 million homes. That's up from the 2% of loans, or about 938,000 homes, that were in foreclosure at the end of 2007.
The report also showed that 448,000 homes, or about 1% of loans being serviced, began the foreclosure process during the first quarter. That's up from about 382,000 homes, or 0.83%, that entered foreclosure in the last three months of 2007.
This marks the sixth straight quarter in which a record percentage of loans went into foreclosure. The trend has led to widespread declines in home prices, as well as huge losses for banks and other financial firms that issued or invested in the loans.
Nearly half of the homes in foreclosure are concentrated in six states. But those states are undergoing two very different types of housing meltdowns.
California, Florida, Arizona and Nevada have been hit by a hangover after a home building boom in the middle of the decade, which was fueled by rising home prices and investors snatching up real estate using risky mortgages. Those four states have about 368,000 homes in foreclosure, or a third of the nationwide total. Roughly 3.7% of all of the loans in these states are now in foreclosure.
The other two states that are ground zero for the crisis - Michigan and Ohio - have been hit by the more traditional economic woes stemming from rising job losses, particularly in the automotive sector.
Ohio has about 61,000 homes in foreclosure, while Michigan has about 54,000. The foreclosure rate in those two states is 3.9%.

MY TAKE: The Grand Valley has largely been spared, but the foreclosures are coming. I don't expect them to happen here the way they are happening in Florida, California or even the front range of Colorado. That said, this market is going through a correction. Expect price drops and the scattered foreclosure in the coming months. With additional inventory sitting and more in the pipeline we are headed for a slow down. If you haven't changed your business philosophy yet, now is the time. Learn how to convert more prospects to buyers. Learn how to create strategic partners in order to close more deal. Call me today to see what Cherry Creek is doing to help our Realtors.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Free Legal Resources For You

2008-06-04T01:26:00.000-06:00

Did you know CAR has a Legal Resource section on its website? There are numerous pre-written articles that you can use as a reference when you have a legal question. The articles can be found at www.ColoradoREALTORS.com.

MY TAKE: You will need to login to access them, but there aren't many places to get free legal advice that pertains specifically to Colorado. Spend some time here, you may save yourself the heartache of a lawsuit. Never a bad thing.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

Mortgage Fraud Crackdown

2008-06-03T06:19:00.001-06:00

The FBI was instrumental in 206 convictions in 2007 for real estate securities and commodities fraud.

According to an FBI report released Thursday, the 1,204 mortgage fraud cases pursued in 2007 resulted in 321 indictments and court orders for $595.9 million in restitution.

The FBI, working in conjunction with the Securities and Exchange Commission, is investigating more than 1,300 mortgage-fraud cases and conducting 19 corporate investigations linked to the subprime lending crisis.

Source: The Associated Press, Marcy Gordon (05/22/2008)

MY TAKE: I am so happy to hear stories like this. Each indictment rids the mortgage market of people willing to say or do anything to make a dollar. Each indictment also serves notice to mortgage brokers/lenders that there are consequences for their actions.

Proposed RESPA Changes

2008-06-02T11:50:00.002-06:00

The U.S. Department of Housing and Urban Development’s proposal to reform the Real Estate Settlement Procedures Act “tips the balance in favor of the largest financial industry players, opens the door to legal challenges, and does little if anything to benefit consumers,” says NAR.

“NAR appreciates the House of Representatives’ request to HUD to extend the comment period for 60 days, but HUD only granted 30 days. This reform, and getting it right, is too important to try to push it through without full consideration,” Adam D. Cockey Jr., chair of NAR’s Real Estate Services Forum, told the House Committee on Small Business today. “We would like to see HUD withdraw its RESPA proposal, refocus it and republish.”

According to NAR, reforms should focus on reformatting the Good Faith Estimate (GFE) and HUD-1 for clearer disclosures that help borrowers better understand and compare mortgage products and closing costs.

“We believe it is in the best interests of home buyers to have just one set of simplified rules and disclosures. The current proposal will require expensive and time-consuming changes to the industry at a time when the industry and consumers can least deal with controversial wholesale changes,” Cockey said.

NAR opposes the current rule, which is too complex, and requests its withdrawal. It also recommends reissuing the rule with narrowly focused disclosure changes that are consistent with the consensus developed during HUD’s seven roundtables in 2005.

In a recent memo on new regulation, White House Chief of Staff Josh Bolton quoted President George W. Bush in saying “the American people deserve ‘a regulatory system that protects and improves their health, safety, environment, secures rights, and ensures a fair and competitive economic system, while respecting their prerogative to make their own decisions and not imposing unnecessary costs.’"

“The RESPA proposal fails this test, limiting choice and competition and imposing costs and confusion on consumers and industry,” Cockey said. — NAR

MY TAKE: How many changes do we need to have made in a 6 to 12 month period? The additional regulation makes it difficult for anyone to know what is and isn't working. If none of it works it will just be that much more that our industry will have to fight to undo. Cherry Creek Mortgage supports customer satisfaction and tranparency throughout the transaction... We are in support of any legislation that rids the lending industry of predators, but this doesn't do that. Many changes have been made over the last 6 to 12 months. Let's give them a chance to work.

Kevin Wade
Cherry Creek Mortgage
970-243-7800 Office
970-201-2310 Cell

Banks Making Things Harder For Themselves

2008-05-30T08:04:00.004-06:00

NEW YORK (CNNMoney.com) -- Banks say they want to help troubled homeowners, but they are delaying deals that could save everyone - including the lenders themselves - a lot of time and money.
Lenders are taking much longer than necessary to approve short sales, according to Duane LeGate, of House Buyers Network, a short sale specialist.
In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home's mortgage, and forgive the remainder of the unpaid debt.
So if a borrower has a mortgage balance of $100,000 and finds a buyer who will pay $95,000 for the house, the lender agrees to accept that $95,000 and close out the loan.
"There was a much greater chance of success with these in the past," said LeGate
Ideally in a short sale, everyone wins. Borrowers avoid the ugly foreclosure process that destroys their credit, while lenders recoup more of their costs than they would by spending the time and money it takes to kick an owner out and resell the property.
Lenders typically lose about 19% of a mortgage's value in a short sale, according to Clayton Holdings, a Conn.-based, provider of loan analytics, while they lose an average of 40% on loans that go into foreclosure.
Coldwell Banker CEO Jim Gillespie agrees that short sales are taking too long to complete. And he speaks from firsthand experience; a short-sale offer he made on a house in Marin County, Calif. in late fall didn't win approval until April.
But most buyers can't, or won't, wait that long."That's been our biggest challenge - keeping the buyers interested long enough as we wait and wait for an answer," said Jeff Morrell, a Colorado Springs real estate agent who specializes in short sales.
Running out the clock
John Fitzmorris, a short-sale expediter in East Stroudsburg, Pa., was working with Robson and Laura Pereira, who were behind on their mortgage.
"She worked, but he had a construction business that went defunct," said Fitzmorris. "That put them in trouble."
Falling home prices in the area made a normal sale impossible; the couple was upside-down in their mortgage, owing more on the property than it was worth on the current market.
After they fell behind on their payments, Laura Pereira said, her bank, HSBC (HBC), sent her a letter asking her to call for help. "I called them four or five times and they never got back to me," she said. "We had three [short sale] offers on the house at the time." Later, the loan was sold to First American.
Fitzmorris, who has been doing short sales for more than 20 years, contacted First American (FAF, Fortune 500) about a short sale well before the foreclosure date.
But after three months, the bank still hadn't approved the short sale, and the Pereira's property went to sheriff's sale. (First American declined to comment on specific cases.)
"The offer we sent to the bank was $129,500," said Fitzmorris. "But another investor, TM Builders, bought the property at the sheriff's sale for $100,265."
In the end, the bank lost $60,000 on the loan, when it could have lost $30,000 by doing a short sale.
Ironically, TM Builders flipped the home to Fitzmorris's buyer for the $129,500 short-sale price, money the bank would have gotten had it acted more quickly.
"The sellers did what they could to mitigate the problem but the bank didn't respond, which hurt both the sellers - with an unnecessary foreclosure permanently impacting their credit - and the bank," said Fitzmorris.
Usual suspect
The difficulty in getting short sales approved stems from the same hurdles facing all the other foreclosure prevention efforts. The fact that the majority of mortgages are pooled and securitized makes it hard to get approval to change the terms of the mortgages.
"It has to do with who owns the loan," said LeGate. "If a mortgage is stuck in a pool somewhere, when something goes wrong, no one knows who the actual owner of the note is."
Additionally, the volume of troubled borrowers makes it hard for lenders to keep up. The housing crisis has put an enormous burden on mortgage servicers, the companies that manage loans for securities investors.
At many servicers, said LeGate, "There's no one really skilled at loss mitigation, and these guys have more work than they were prepared to do."
And with foreclosure filings breaking new records each month, there's no sign that this problem will ease any time soon.
Says Laura Pereira, "I feel the bank really let us down."

MY TAKE: If the banks wanted to fix this, they could. They clearly don't. The reasons are many, but the people making these decisions are hurting not only their shareholders, but also their employees, the homeowners who could avoid foreclosure with a short sale and everyone who owns a home in a neighborhood where a foreclosure could have been avoided. I really don't understand... Are the banks trying to angle for a governement bailout? That is my guess, but it boggles my mind because each foreclosure depresses the market that much more.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Realtors Settle Case With The US

2008-05-29T06:59:00.001-06:00

WASHINGTON (AP) -- The Justice Department gave a boost Tuesday to online real estate brokers - and potentially their clients - by forcing new industry policies to give Internet-based agents access to home listings they were previously denied.

The tentative settlement, which still requires court approval, could save consumers thousands of dollars when buying a home.

Online real estate agents often charge discounted commission fees and allow buyers to review listings at their own pace.

For years, however, Internet-based brokers were blocked from accessing more than 800 multiple listing services nationwide affiliated with the National Association of Realtors. An MLS is a database of properties for sale.

In a September 2005 lawsuit, government lawyers said such policies discriminated against online brokers. The settlement, filed in U.S. District Court in Chicago, opens the MLS databases to online and traditional residential property agents.

"It really does free brokers generally to engage in whatever they feel is the most efficient and effective way to compete," Deputy Assistant Attorney General Deborah A. Garza of the Justice Department's antitrust division told reporters.

She said the settlement "should lower the cost of the transaction for buying a house."
In 2006, for example, consumers saved up to 1% on the price of a home by using an online broker, Garza said. That year, the median home price amounted to over $225,000, with median commissions of more than $11,000.

Real estate agents earned $93 billion in commissions in 2006, she said.

In a report last year, the Justice Department and Federal Trade Commission found that limits on discount brokers' access to Web listings of for-sale properties have prevented consumers from receiving the cost savings and other benefits that online competition has brought to other industries.

The report found that more consumers use the Web when house hunting than rely on "For Sale" yard signs.

Even so, online brokers who were locked out of the MLS databases were unable to compete with real estate agents, government attorneys said. In at least one case, in Emporia, Kan., an Internet-based agent was forced out of business after the local MLS denied his access to any property listings in the local market.

Tuesday's settlement will not take effect until late summer at the earliest, or 60 days after it wins court approval. It would be in place for 10 years.

It neither imposes a fine on the National Association of Realtors, nor does it force the group to acknowledge any liability.

The group represents 1.2 million real estate agents and other members in more than 250,000 active office locations and branches nationwide.

In a statement, Realtors President Richard F. Gaylord said the Chicago-based association is "focused on what matters most to consumers - re-energizing the housing market."

"Competition is alive and well in the real estate industry," Gaylord said. "In fact, the competitive nature of our industry is even more apparent in times of market turmoil like those we are currently experiencing."

MY TAKE: I don't see antitrust here. I would have liked to see the National Association of Realtors fight this one out, but they felt that this agreement would be better for them and for each individual Realtor than a lot of highly publicized litigation. Realtors have a difficult job and I commend each of you for running your business the way that works best for you.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

The Realtor And The Flipper

2008-05-28T06:40:00.001-06:00

The REALTOR® listed the sellers’ house and started working hard to sell it. Along comes the flipper and asks if he can buy it at a reduced price in a short sale. The REALTOR® writes the contract and submits it to the seller who signs it and then it is submitted to the lender for approval. While that approval is pending or even after it is approved, but prior to the closing, the flipper asks the REALTOR® if he will help him “re-sell” it to the ultimate purchaser. This should have been a bedtime story.
The REALTOR® forgot that he was hired by the seller to get the best price. In fact the seller was not fully aware of the dual listings and is now thinking that maybe the REALTOR® was not working for the seller’s best interests as it looks to the seller like the REALTOR® is in partnership with the flipper. In fact the showings to the potential ultimate purchasers are making the seller a little concerned. I mean after all it was the REALTOR® that convinced the seller to sell to the flipper. It was the REALTOR® that then helped the flipper re-sell it.
I hope that this little story helps clarify the issue. Yes, there is a different version that also might be told at a license revocation hearing. In essence the same story as above, except that the REALTOR®, working with the flipper, knows that the flipper is going to resell it prior to submitting the offer to the seller on the short sale. That's right, the seller's REALTOR® knows that the flipper is going to flip it prior to presenting the offer to the seller.
Would the story sound better if the seller were made aware of this system? Maybe, but what seller would understand this issue when it was presented by his trusted REALTOR®. That is to a seller in dire straights. No this is not dual agency, this is very dangerous. Don't do it.

Source: Oliver Frascona

MY TAKE: These situations don't come along very often, but in changing markets Realtors can sometimes be faced with situations that leave them vulnerable. Ask your managing broker and use your ethics as a compass, but when all else fails, call this guy. Oliver Frascona is a partner of the Frascona, Goodman and Joiner real estate law firm in Denver and also an approved instructor for the Colorado Real Estate Commission. If you ever have a chance to hear him speak, take it. He is very knowledgable and very entertaining.

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

10 Ways To Cut Moving Costs

2008-05-27T07:14:00.003-06:00

If you're moving into a new home, your pockets probably feel pretty empty right now. You've just paid a down payment, closing costs and broker fees, so the last thing you want is an expensive move. Lucky for you, we've got tips to help you pack up and ship out on a budget.

1) If you don't need it, don't pay to move it. Movers base their prices on what you're shipping, so cutting down on clutter will simplify your life and lighten up the load in the moving truck. We're talking to you, the owner of the treadmill-turned-drying-rack. You can sell what you don't need or donate it to charity.
2) If possible, schedule your relocation after peak moving season. Most people choose to move in the summer months, when the kids are out of school. The least expensive time of the year to move is between October and April, so if it's possible to postpone your move, you could save some money.
3) Get at least three in-home estimates. If you're hiring a professional mover to do the heavy lifting and packing, prices can vary widely between companies. To make sure you're getting the best deal possible, get at least three estimates.
4) Don't get scammed by a rogue mover. You'll be loading up all your worldly possessions and putting them on a truck with a few workers you barely know. Protect yourself! Look for red flags and get recommendations from friends and neighbors to avoid getting scammed.

5) Use what you have for packing, and then buy your own supplies. Moving companies often charge hefty fees for packing supplies. Save money by filling up containers you already have, like suitcases or plastic bins. Use sheets and linens to wrap items. Buy the packing materials you still need from a recycled box company, or get them free from a local business.

6) Ask questions to unearth hidden moving costs. Even legitimate movers might not spill all the costs unless you ask. To get an accurate picture of your total, ask if they'll charge for heavy items, repacking, stairs or waiting.
7) Get portable storage and delivery. Companies like PODS (1-800-PACKRAT) will deliver a storage unit to your door. You'll save money packing it yourself, and they'll pick it up and deliver it to your new digs.
8) Rent a truck for a totally DIY move. Renting a truck and doing it yourself is the most cost-effective way to move. Enlist your friends and family for packing, and read the fine print for mileage allowances and fuel surcharges.
9) Get moving insurance. Even the best movers have one potential pitfall: They're human. If you do wind up with a lost or damaged item, you'll likely need more than the measly 60-cent-per-pound coverage that comes free to replace it.
10) Deduct your moving expenses from your taxes. Don't forget to save those receipts -- you can also save money after the big move! If you relocated for a new full-time job at least 50 miles away from your previous home, you can deduct the cost of packing, transporting or storing your household goods from next year's tax return.

MY TAKE: Buyers love stuff like this. They participate in a real estate transaction once every 5 years or so. Put together a buyers packet of information for them to help make the move easier. Little things like that go a long way to helping them remember to tell their friends about you. It's doubtful they will ever tell their coworkers about your new Tahoe, but they will certainly remember that you provided them with a wealth of imformation that made their move tolerable.

You may even want to go the extra mile. Put together a list of moving companies that you have cross screened through the Better Business Bureau. Call U-Haul and see if you can negotiate a special rate for your buyers and sellers.

frontdoor.com

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

12 Pain Free Ways To Cut Costs

2008-05-26T08:07:00.000-06:00

Here are some simple ideas to cut costs without hurting your business... in fact, some of these might even become a revenue-producing part of your business for years to come!

1. Create an account with Kinko's or your local copy shop - they often give breaks on print materials and copies.
2. Sell advertising space on your website to local businesses. What types of businesses might be interested in potential homebuyers? Here are some ideas to get you started, but remember, anyone who wants to reach potential home sellers and home buyers could be interested such as:
Appraisers
Mortgage companies
Termite and pest control
Carpet stores
Window treatment stores
Home improvement stores
Landscapers
Banks
Cleaning services
Painters
Interior decorators
Cable and satellite providers
Security system services
3. Combine advertising costs with local lenders, title companies or attorneys for things such as mailers, newspaper ads, and ads on your open house fliers. You could even contribute to each other's e-newsletters or blogs to gain more exposure.
4. Negotiate print costs by committing to a period of time and number of prints for your advertising. Depending on the design and message of your piece, it may make sense to print with fewer colors rather than full color to reduce your costs. If you plan to send out the same mailer over time, printing the entire quantity all at once will save some cash. Even if just one side of the piece will remain the same, depending on the quantity you need, you can print the "shells" (side that will remain consistent) all at once and print the other side later as needed. Many companies do this to get as much savings as they can by printing one side all at once, but retain flexibility to change up what goes on the other side. If you're interested in one of these cost-cutting options, talk it over with your printer so they can help advise you based on the quantities you need.
5. Look for advertising opportunities in HOA newsletters (cheaper than postcards and the residents read them). Chances are, this audience of homeowners will need to buy or sell a home (or both) in the future. This can be a great way to keep "top of mind" without spending a ton.
6. Schedule showings early in the morning before the summer or spring heat to reduce fuel consumption.
7. "Sponsor" a local little league team to create good will and viral advertising by donating towards uniforms for logo placement. This relatively small investment can go a long way in your local community!
8. Create a profile on Facebook® or ActiveRain® and do a weekly blog. Then create links on your site (viral marketing).
9. Team up with other agents doing an open house in your listings' neighborhood on the same weekend for a large giveaway. You can even make it into a festive neighborhood event and split costs of signage, balloons, hotdog stands, etc. You might even consider splitting the cost of a radio remote from your local radio station to promote the event.
10. Purchase office supplies in bulk. The key is to get the items you know you'll use.
11. Send some of your campaigns via e-mail rather than traditional mail — this will let you cut out some printing and postage costs. Plus, a lot of people prefer e-mail communication. It's usually a good idea to mix up your marketing approach anyway. If you would like to try out an easy, automated way to send e-mail campaigns, click here for your free trial of XSellerate (our automated marketing program.)
12. Check out the ROI you’re getting from newspaper advertising and other print. You may get better results by spending some of the money on online advertising where you have increased exposure and ads have a longer life cycle.

By Rusty Lindquist of A La Mode

MY TAKE: We are in a changing market and while it would be too much to bite off to change your whole business plan, take a moment and pick one or two of the best ideas from this list and implement them in the next 30 days. Tell your managing broker that you are going to do it and ask them to hold you accountable. If it works, continue to do it and if it doesn't move on to something else.

At Cherry Creek Mortgage we offer resources to agents such as our 1-800 technology to help you track where your business is coming from. We also offer the Homebuyers Scouting Report (HBSR) which will help you convert prospects into buyers by putting them in the drivers seat. The HBSR is one of the most powerful tools available to agents right now and on average helps agents close an additional 8 deals per year. When used properly you WILL close deals that you would lose otherwise.

Call me for a 15 minute demo. It's free and there is no obligation. If you play your cards right, you could probably even talk me into buying you a cup of coffee or some lunch.

Kevin Wade

Cherry Creek Mortgage Company
970-243-7800 - Office
970-201-2310 - Cell

Cherry Creek Mortgage Production

2008-05-23T07:14:00.000-06:00

We are continuing to grow!

Cherry Creek Mortgage Company funded $162 million in loans for the month of April. Through the end of April we funded $612 million in loans.

In a time when mortgage companies are under constant duress, Cherry Creek Mortgage Company has continued to grow and fill the gap left behind by lenders that have fallen by the wayside.

Cherry Creek Mortgage Company is a lender, not a broker. We have our own underwriters and we fund our own loans. We are a local company with a national footprint. In short, we are everything that our clients not only need, but prefer. We are excited about the future and are always looking to develop partnerships with like minded professionals. Call today and ask about some of the tools we offer Realtors to help them grow their business.

Thank you,

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

Postlets - You Have To Read This

2008-05-22T09:22:00.001-06:00

Check out www.postlets.com. Here is how it works:

You open a free account, that's right, free. You input your listing information (pictures and all) and they automatically upload your listing to a number of sites for free. Craigslist, Zillow, Backpage.com, Google Base and many more.

Did I mention that it is free?

Check it out, an easy way to get some extra exposure for your listings on some very highly visited sites.

Remember where you heard about it.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell

Required Code Of Ethics Training

2008-05-21T07:11:00.001-06:00

REALTORS® Required to Complete Ethics Training for Second Cycle -- Deadline December 31, 2008 Between January 1, 2005 and December 31, 2008, every REALTOR® is required to complete 2 1/2 hours of Code of Ethics training. REALTORS® who have completed this training as a requirement of membership in another association are not required to complete additional ethics training until the next four year cycle.

Associations are required to provide access to such training. Failure to comply with this required ethics training is a violation of a membership duty for which the member’s primary association will suspend membership until the training is complete.

There is also an accompanying ethics orientation training requirement for REALTOR® applicants that must be satisfied after applying for membership.

MY TAKE: Don't let the deadline pass without taking this course. It is free to take the class online or you can contact the GLARA for details on local classes.

Kevin Wade
Cherry Creek MOrtgage
970-243-7800 Office
970-201-2310 Cell

www.AngryRenter.com

2008-05-20T08:58:00.000-06:00

By: David Gibbons, zillowblog
As of 9AM this morning, 45,192 people have signed the online petition at AngryRenter.com calling for Congress to not pass any bailout programs that reward risky borrowing and lending. According to the AngryRenter.com website, the preferred solution to the foreclosure crisis is to; “Let the free market sort it out!”
The $300 million mortgage bailout bill has made its way out of Barney Frank’s (D.-Mass.) Financial Services Committee with a vote of 46-21 in favor. President Bush on Wednesday threatened to veto the bill, saying that that “it would “reward speculators and lenders” (h/t Townhall.com.)
AngryRenter.com is just a month old but it seems to have struck a chord. Freedomworks, the non-profit, non-partisan group behind AngryRenter, clearly understands the dynamics of grass roots initiatives on the web. So, what do you think; should Sally have to bail out Bob?

Foreclosure Changes In Colorado

2008-05-15T07:24:00.000-06:00

By Jonathan A. Goodman & Karen J. Radakovich

For foreclosures started after January 1, 2008, the owner no longer has a post-foreclosure sale redemption right. The time allotted to the owner as a post-sale redemption period has been moved prior to the sale, giving owners a longer period of time to cure, and no right to redeem. In the new system, an owner has approximately four months to cure a default in a foreclosure of non-agricultural property, and approximately seven to eight months to cure in a foreclosure of agricultural property. This article explores the more subtle changes in the new law. Better lender responsiveness for cure figures

The new statute requires the foreclosing lender to provide cure figures to borrowers in a more timely manner. Consider a situation where shortly after a lender commences a foreclosure, the borrower files a notice of intent to cure. Under the old statute, a lender could provide cure figures as late as the seventh calendar day prior to the foreclosure sale. If, under the new statute, the borrower files a notice of intent to cure early enough so that the foreclosing lender receives the notice from the public trustee more than thirty days before the foreclosure sale date, the lender must provide cure figures within ten business days after its receipt of the intent to cure. If the foreclosing lender receives the notice of intent to cure thirty or fewer days before the foreclosure sale, cure figures must be provided by noon on the seventh calendar day before the date upon which the sale is set. It remains to be seen, however, how much practical significance this change will have. If a lender is tardy in providing cure figures, the public trustee merely postpones the foreclosure sale. Under the new statute, the lender may delay foreclosure sales for up to one year after the initial scheduled sale date.

No manipulated redemption rights
Under both the old and new statutes, lien holders have redemption rights after the foreclosure sale. Under the old statute, a lien created as late as 60 days after the foreclosure sale (in a non-agricultural foreclosure) could create redemption rights. The ability to create liens after the foreclosure sale allowed investors and friends to loan the borrower small sums to manufacture redemption rights junior, for example, to a second mortgage. Because a significant percentage of second mortgage holders fail to redeem, the ability to create redemption rights after the foreclosure sale created opportunities to redeem from finessed junior liens. For a junior lien holder to have redemption rights under the new foreclosure statute, the lien must have been recorded prior to the recording of the Notice for Election and Demand.

Junior Lien Holder Redemption Rights
Under the old law, junior lien holders had to file notices of intent to redeem not later than fifteen days prior to the end of the owner’s redemption period under the old law. Now, there is no owner’s redemption period to mark the deadline.

In the new statute, junior lien holders must file their notices of intent to redeem within eight business days after the foreclosure sale. After that eight-day period, the public trustee has a five-day period (from day nine through day fourteen) to determine the relative priority of the lien holders who filed notices of intent to redeem and fix their redemption periods. Then the senior-most lien that is junior to the lien being foreclosed (typically a second mortgage) has fifteen to nineteen days after the foreclosure sale to redeem. (Day fourteen seems to be a dead day.) Each subsequent junior lien holder gets a subsequent five-day period. If a junior lien holder waits until his or her last day to redeem, the funds must be tendered by noon, not by close of business permitted under the old law.

Under the old statute, if the certificate of purchase holder (i.e. the highest bidder) also had a junior lien on the property, it had to redeem from itself to protect against redemptions by other junior lien holders. Under the new statute, the C.P. holder needs only to file a notice of intent to redeem. Similarly, if a junior lien holder holds two liens, it can preserve its right to be redeemed out from its junior lien by even more junior lien holders by merely filing a notice of intent to redeem.

Miscellaneous

With the old law, if a lender was foreclosing on two parcels secured by one deed of trust and it wished to release one of the two parcels from the foreclosure (because, for example, a REALTOR® ® had sold one of the two parcels for a good price, but less than the price that it would take to pay off the whole mortgage) the lender would need to withdraw the whole foreclosure. Under the new statute, the lender can release one of the two parcels encumbered by the foreclosed deed of trust and continue with the foreclosure on the other parcel.

The new statute requires lenders to submit bid letters by noon on the second business day prior to the foreclosure sale. Foreclosure sales are typically on Wednesdays, so lenders will typically submit bid letters by noon on Mondays. The new foreclosure law specifically permits lenders to include prepayment penalties in the calculation of the mortgage payoff within the lender’s bid letter.

As noted in the last article, one of the goals of the new foreclosure statute is to make an owner less attractive as prey for predatory foreclosure investors. As a consequence, if the owner at the time the foreclosure is commenced conveys title, the grantee might not be able to cure. Only specifically defined grantees (who may be best summarized as “related grantees”) such as a spouse, a personal representative of an estate, or a business entity wholly owned by the original owner, can cure. Foreclosure investors who acquire title to the property after a foreclosure has been commenced will not inherit the owner’s right to cure. (It is beyond the scope of this article to explain all the details of this change.) Under the old statute, if the successful bidder at the sale wanted to take less than it was owed to be redeemed out, the public trustee was not explicitly authorized to accept “short redemptions.” The new statute allows the public trustee, with the consent of the holder of the certificate of purchase, to accept short redemptions.

If the foreclosing lender is the highest bidder at the sale, the lender has an opportunity to rescind the public trustee sale, in certain narrow circumstances, within eight business days after the foreclosure sale.
Much of the success of the new foreclosure statute will depend upon whether investors compete against lenders and bid at foreclosure sales. Only time will tell.
Disclaimer -- Content is general information only. Information is not provided as advice for a specific matter, nor does its publication create an attorney-client relationship. Laws vary from one state to another. For legal advice on a specific matter, consult an attorney

MY TAKE: If you made it all the way through the article and understood it completely, call me for your medal. This is complicated stuff and if you are dealing with a preforeclosure listing you will want to pay extra attention to the new laws. One of the authors is Jonathan Goodman who is a partner with Frascona, Goodman and Joiner... A great real estate law firm in Denver.

New Max LTV For Condos/Townhomes With Mortgage Insurance

2008-05-12T22:18:00.000-06:00

You may not be aware, but for Conventional Financing, effective May 1, the majority of the Mortgage Insurance Companies have rendered a maximum LTV policy of 90%, for condos and townhomes that have mortgage insurance. This includes lender-paid mortgage insurance, too.

I have called all of the mortgage insurance companies and the only two that are still checking eligibility for above 90% LTV financing, by zip code, are:

PMI – http://www.pmi-us.com/

Radian – http://www.radian.biz/1
If you take a conventional loan application for a condo or townhome that will have mortgage insurance and you require an LTV above 90%, make sure you check the zip code on these websites. Both mortgage insurance companies have links off their websites for “declining markets”.

Once you know whether the property is eligible for an LTV above 90% (assuming that the borrower qualifies for the loan) – you need to check with your investor to ensure that the investor insures their loans through one of these companies. As an example, AmTrust underwrites and insures with both companies.

Don’t get caught on this – most people are not aware of it. Additionally, the investors don’t seem to all know about it either.

As far as I know – FHA has not imposed any such restrictions on condo and townhomes. If anyone knows differently, please let me know!

Let me know if you have questions or comments.

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

Transfer Taxes Proposed In Colorado

2008-05-09T07:25:00.001-06:00

Transfer Taxes
Three initiatives are active to establish a statewide transfer tax on all real estate transactions. All have been filed by the Housing Works for Colorado – a group supported by Housing Colorado, among others. We know that these folks are raising money (first report denoting $60,000 in contributions) and they have made a significant expenditure to hire a petition circulator in order to garner the necessary signatures required to place the initiative on the ballot.

To counter the transfer tax proposals, initiative #127 was filed to prohibit the collection of transfer taxes if assessed market values fail to increase by at least 18 percent in any two consecutive years. Stay tuned...

Source: Capitol Connection

MY TAKE: The last thing we need in Colorado is a transfer tax on real estate! What would we do next to prevent people from being able to sell their homes? A property tax would benefit the state, but would punish the citizens of this state. Contact your congressman and make sure they know how strongly you feel about a transfer tax and how much it would hurt the real estate market.

Kevin Wade

Cherry Creek Mortgage

970-243-7800 Office

970-201-2310 Cell

Spring Cleaning To Improve Your Business

2008-05-08T10:21:00.000-06:00

Reduce Your Business Clutter Real estate practitioners should spring clean their businesses to eliminate clutter and better position themselves among the competition.

It's important to take note of your marketing and technology tools, getting rid of those that eat up money and time but do not produce the desired results. In addition:

Update databases, purging them of inaccurate information or prospects that have not panned out, and weed through e-mail to delete junk messages and print and file important documents.

Look over marketing materials and determine whether they were effective. Consider shortening listing presentations to focus on what makes them better than your competitors and how they will yield better results for clients.

Check the Multiple Listing Service to determine Average Days on Market and Average List-to-Sales Price ratio in your area, If your own figures beat the market averages, include them in listing presentations.

Source: Realty Times, Denise Lones (04/29/08)

The Next Generation Of Buyers

2008-05-07T14:36:00.000-06:00

Real Estate Consumers: The Next Generation

Here's a real reason to be optimistic about the future of real estate: About 70 million real estate consumers are heading our way, and a 2007 survey of college students by a company called Anderson Analytics showed that real estate is a real priority for Generation Y.

Survey respondents were asked to complete this sentence: "If I could buy anything, it would be-not an iPhone or an Xbox-but a home. Housing was the top choice for 41% of the men and 49% of the women.

This is an interactive group, and the ways they communicate and interact that seem like new media to us-blogging, online communities like Facebook, instant messaging-are simply everyday habits to them. This is the way they interact with each other, and they will expect to be able to communicate with their real estate professionals this way as well.

$172 billion in purchasing power is an impressive number. In addition to their own money, this group of real estate consumers will benefit from a huge transfer of wealth from their boomer grandparents in the coming years.

Source: Eneighborhoods

Kevin Wade

Cherry Creek MOrtgage COmpany

970-243-7800 Office

970-201-2310 Cell

Forecast For A Soft 2008

2008-05-06T10:06:00.000-06:00

Story by MIKE WIGGINS
The Daily Sentinel

Known in the past few years for its rocketing-into-orbit trend in both sales and dollars, the Grand Valley housing market is settling back to earth and giving every indication it will be soft in 2008.
Real estate sales in Mesa County dropped 29 percent in the first quarter that ended March 31 to 1,054 from 1,481 for the same period in 2007, according to a quarterly report produced by Stewart Title Company in Grand Junction.
The first quarter of 2008 marked the seventh consecutive quarter that real estate sales were lower than the comparable period the previous year.
Even though sales have been off, the dollars generated by those sales has continued to hold steady or climb. But even that changed in the first three months of this year, as the dollar amount from sales slipped 8.3 percent from $343 million in 2007 to $315 million this year, according to Bob Reece, who researched and wrote the report and is the Western Slope district manager for the title company.
Reece said the decline in dollar volume is an indicator that properties aren’t appreciating as quickly as they once did.
Building permits for single-family homes, meanwhile, plummeted 44 percent from 327 in the first quarter of 2007 to 183 this year. The 42 single-family permits issued in the county in February were the fewest in a month since February 1993, Reece said.
“It will be a soft year in 2008, there’s no question,” he said. “This is very interesting to watch.”
Reece said the drop-off may come as a surprise to residents because retail sales remain strong and unemployment rates remain low.
“I think we are just waiting either until property values adjust enough that people say ‘I’m going to get in, I’m going to buy,’ or confidence increases to where people say, ‘I know this is going to go up, I’m going to buy now,’ ” he said.
Reece said first-quarter sales and building permits may have been hampered by the colder-than-normal weather the valley experienced. But he said the second quarter will be a harbinger for the market.
“It will tell us anything we need to know about this year,” he said.
•
E-mail Mike Wiggins at mwiggins@gjds.com.

Real estate sales, first quarter, ending March 31
DOWN 29 percent from 1,487 in 2007 to 1,054

Revenue from first-quarter real estate sales
DOWN 8.3 percent from $343 milion in 2007 to $315 million

Single-family building permits in the first quarter
DOWN 44 percent from 327 in 2007 to 183
Source: Stewart Title Company in Grand Junction

Foreclosures Up 112%!

2008-05-05T10:30:00.000-06:00

NEW YORK (CNNMoney.com) -- Foreclosure filings in the first three months of 2008 rose more than 112% over last year, according to a study released Tuesday.

Real estate information firm RealtyTrac reported that nearly 650,000 foreclosure filings - which include notices of default, auction sales and bank repossessions - were issued in the first quarter.

That represents 1 of every 194 households and marks a 23% increase from the last quarter of 2007.

By Les Christie, CNNMoney.com staff writer

My take: This is a staggering number and the government stop it (even in an election year). Only the lenders can work something out to minimize the losses that we are seeing in property values and they have shown little sign of wanting to. They can freeze or even roll back adjustable rates, they can grant hardships, they can work to move short sales through at a much faster pace. A short sale is guaranteed to bring in more money than a stripped, vacant foreclosure.

The lenders are all wanting to be bailed out of these bad loans by the government and by the time congress gets around to passing any significant legislation the only ones that will be helped are the banks. The market will correct itself and while it will be a rocky road, we will all be working in a much healthier market than if the government comes in and "fixes" everything. The unintended consequences of the government preventing anyone from losing their home could be devestating.

5 Ways To Be More Likable

2008-05-05T09:46:00.000-06:00

From the Book: 5 Ways to Be More Likeable by Mark Wiskup

In real estate, being a “people person” is core to your job. You must forge relationships quickly and earn the trust of those you meet. Say the wrong thing, and you can kiss that first impression goodbye. Wiskup offers these ideas for boosting your likeability factor in almost any situation:

1. Be specific with compliments. Vague, lackluster praise (“I’m really happy to meet with you today”) comes across as insincere, insensitive, and can even leave the other person feeling resentful. Make your compliments stick by being descriptive and showing that you did your homework. Instead of: “Great job on the marketing report. Keep up the good work,” try “Good job on the marketing report. The third-quarter demographic stuff really helped me focus on where the money is for us. I was really impressed with your analysis of the competition.”
2. Don’t talk about the weather. Start small talk with questions about work, hobbies, and (only if they raise it first) spouse and family. These topics can set a great foundation. Try asking several questions about the same topic in succession. Make the first question broad (Where are you from?), the second one more focused (What made you move here?), then narrow the third question (Do you miss Minnesota?). Finally, offer your own information related to their response and ask a follow-up question (“I went to Brainerd for a conference once, but it was summer so I didn’t get a taste of the Minnesota winter. Have you been there before?”). If they ask you a question to keep the conversation going, you’ve made a connection. If not, maybe it’s time to switch topics.
3. Perfect your elevator pitch. Have about five prepared pitches you can use instantly at conferences, networking events, and other situations. Without using any industry jargon, describe specifically what you do for your customers, using conversational phrases such as
“My clients hire me because I…” or “I’m the go-to-guy for…” Leave out your marketing slogan or mission statement (boring!). Instead, give an example of how you helped a single customer: “Just last week I helped a client who was having a problem…,” and then give a quick, happy ending that shows how you solved the problem.
4. Don’t patronize me! Seemingly harmless phrases can be a big turnoff to the listener. For example, saying you’re “more than happy” makes it sound like you’re trying to fool the other person into thinking that you really are that happy. And using “basically,” makes it sound like you’re dumbing down the conversation for the benefit of others. Other tips: Don’t say “I’m sorry” when you’re really not, and never start sentences with “honestly” or “to tell you the truth” — after all, do you really have to say you’re being honest? You should repeat often in a conversation to emphasize main points, but never draw attention to it by saying “as I said before.” You risk insulting the listener by insinuating that he or she isn’t quick enough to catch on.
5. Paint a picture. Work word pictures into your conversations to give relevance to what you’re saying and connect with your listeners. Statements filled with overused expressions, numbers and statistics, and jargon create only “average” communication, not memorable communication, Wiskup says. For example, if a buyer asks you to explain a document that’s required in a real estate transaction, don’t just give one sentence to sum up what that document is. Tell her why it’s important, where it’s being filed, and why it’s essential that she signs it.
Sneak Peek
“Those who have ‘it’ are just like you, but they have studied, cultivated, and practiced some fundamental skills. They’re not more blessed than you are; they’re just ahead of you. ‘It’ takes work and knowledge, not lucky DNA. That means all those people who brilliantly forge instant connections (the people you may be jealous of because you think their people skills come naturally) have deliberately developed their own dynamic ‘It’ factor. Whoa, you say, how can that be? It’s not possible. Some people are just too good, too smooth, too charming, and they make it look so easy. They must be naturals! They aren’t. … Those men and women you mistakenly pegged as naturals are actually conscious of the steps necessary to become memorable in every conversation and then work those steps constantly.”

Affordable Ways To Makeover A Bathroom

2008-05-01T07:16:00.000-06:00

A dreary, outdated bathroom can be a home sale deal breaker.

Remodeling magazine says the average price of a mid-range bathroom remodel in 2007 was $14,445. But $500 worth of nips and tucks can upgrade the room, says Lytel Young, host of HGTV’s "Save My Bath."

"There are three important things in a bathroom," Young says. "Clean, simple, and orderly. That's the key for every budget, whether it's $500 or $40,000."

He recommends these inexpensive steps to sellers whose baths need a facelift:

Rip out the dated medicine cabinet and replace it with a big mirror.

Replace the lighting with new sconces on both sides of the mirror plus a new overhead fixture on a dimmer.

Re-caulk the tub and shower.

Repaint with a neutral color, but decorate with big, fluffy colorful towels.

Hang some framed art.

Source: The Washington Post, Terri Sapienza

Prospecting Without A Sales Pitch

2008-04-30T08:34:00.000-06:00

Real estate sales associates who obtain most of their business from people within their "sphere of influence" can also get business from strangers without door knocking, cold calling, or advertising.

How? By presenting themselves as sources of objective, insightful information about the local market.

They would be wise to keep their eyes open for business opportunities and keep smiles on their faces when outside the office.

Although it is smart for them to be prepared to talk about the local housing market on a moment's notice, they should be able to do so without delivering a sales pitch. Additionally, real estate professionals should spend a lot of time gaining knowledge of the local market, reading neighborhood newspapers, attending local meetings on such topics as transit oriented development, and making trips to shopping districts and new-home communities.

Such knowledge is more important than a business card or a speech in generating business from strangers.

Source: Realty Times, Jennifer Allan

Kevin Wade

Cherry Creek Mortgage Company

970-243-7800 Office

970-201-2310 Cell

Proposed Colorado Legislation Will Affect Realtors

2008-04-29T09:43:00.001-06:00

From the Colorado Association of Realtors:

Ballot Initiative Update
There are now three active initiatives that have been filed which address real estate transfer taxes – all brought forward by the same groups. To address flaws existing in the current initiative, the proponents submitted the two additional proposals this week. CAR remains actively engaged in this process and will continue to intervene on behalf of REALTOR® interests.

In addition to the transfer tax proposals, initiative #109 was filed this week concerning the restriction of earned real estate broker fees. In a nutshell, a six percent cap would be placed on transactions up to $250,000; three percent for $250,000 – $500,000; and one percent for transactions above $500,000 (but no more than $500 per hour).

In reaction to initiative #109, CAR has released the following press statement:

First the Colorado Association of REALTORS® believes the ballot initiative process is an unproductive way to deal with consumer and business issues. Second we believe this proposed ballot initiative specifically is bad for consumers. It changes the relationship between the consumer and the real estate agent/REALTOR® by mandating a fixed price whereas, current commission rates are negotiable regardless of the selling price of a property.
The sliding scale is patently unfair, particularly to the majority of buyers who are purchasing homes on the lower dollar value of this scale. For example, using the proposed ballot initiative scale, a family purchasing a $200,000 home would be required to pay a $12,000 commission. A family purchasing a $500,000 home would only pay a $5,000 commission based on the 1 percent mandated rate.
Our current system encourages innovative business models that clearly benefit the consumer. As an association, our desire is to encourage and support our varied professionals in being creative for the consumer and providing diverse solutions to their real estate needs.

My take: This legislation makes absolutely no sense and amounts to price fixing in the highest order. Can you hear the complaints from an individual who claims that an agent priced their home so it would fall under a lower tier and allow them a bigger commission? The market does a good job of allowing sellers to shop for a price and a level of service that they feel best suits their needs. The Colorado Political Survival Fund is a PAC that looks out for the interests of Realtors and they are privately funded by donations from affiliates of real estate boards who vote or pay dues. Check them out at http://www.coloradopsf.org/.

Kevin Wade

970-243-7800 Office

970-201-2310 Cell

Why Are Short Sales So Tough?

2008-04-28T21:39:00.000-06:00

Why Are Short Sales So Troublesome? Short sales seem like a win-win for everyone involved, but as real estate professionals know, short sales can be hard to pull off. It can take months for the mortgage company to respond to an offer, and the lender or lenders often balk at the price.

Why doesn’t the process go more smoothly when it seems like a much better deal for everyone than foreclosure?
Paperwork: Gathering all the information needed to evaluate a short-sale offer can take time, says Patrick Carey, an executive vice president with Wells Fargo. The loan servicer must first determine whether the homeowner really can't continue meeting the loan payments, then get an appraisal or broker's opinion of the home's value.
Many steps, approvals: Mortgage servicers also try to ensure that the proposed sale is an "arm's length" transaction between two parties rather than something like a sale to a relative on sweet terms. They must also determine whether the buyer has sufficient funds or the ability to get a loan. If all those hurdles are cleared, the servicer may still need to get approval from the investor that owns the loan and provide an analysis showing that the investor will be better off with a short sale than with another solution.
Complications often arise: There are additional complications if the borrower has a mortgage and a home-equity loan. In that case, both parties must approve the deal – which is a challenge when the sales price may not even be enough to cover the mortgage balance.
Minimize delays: Carey suggests that home owners contemplating a short sale immediately call the loan servicer to get the approval process started, rather than wait for an offer.

Source: The Wall Street Journal, Ruth Simon and James R. Hagerty (04/17/2008)

Fannie/Freddie To Buy More Than 15 Billion In Jumbo Mortgages

2008-04-28T19:45:00.000-06:00

Fannie Mae and Freddie Mac agreed last Friday to buy more jumbo loans from major lenders, making it easier for borrowers to get these kinds of mortgages.
Freddie Mac said it expects to buy up to $15 billion of jumbo conforming loans from Wells Fargo & Co., Chase, Citi Bank, Washington Mutual, and other lenders.
None of the banks were able to provide rates for the jumbo conforming loans. But Tom Kelly, a spokesman for Chase, said the Freddie Mac agreement "is going to make more money available in high-cost markets and the rates are obviously going to be less" than they have been since February when Congress first raised the size of mortgages Freddie and Fannie are able to buy.
Since the increase, jumbo mortgages have been more than 2 percentage points higher than other conforming mortgages. Plus they have had stiffer requirements, including higher credit scores and bigger down payments.
"The idea is to provide more liquidity, to lower the rates, and provide more money from the investor side," said Jon Skarin, director of federal policy for the Massachusetts Bankers Association. For the program to work, he said, rates "are going to have to come down significantly, and we'll see."

Source: The Boston Globe, Kimberly Blanton (04/19/2008)

Is Grand Junction Next?

2008-04-25T08:25:00.000-06:00

There seems to be a lot of anxiety in the market now. People aren't sure if the market is overbought and the expectation seems to be that we may be headed in the same direction as California, Nevada or Florida. Albeit on a smaller scale.

As long as the mortgage markets continue to stabilize we should continue to see growth in The Valley. Gas and oil exploration continues to increase and the money these companies are pumping into the economy is mind blowing. With oil near $120 a barrel I don't see these energy companies pulling out of our area anytime soon.

The mortgage market (FNMA/Freddie Mac/FHA) continues to adapt to the ever changing conditions across the country with new programs and guidelines to find a balance between growth and stabilizing the market without harming consumers any more than they have already been harmed.

In a perfect world we could all hear about the national real estate/mortgage fallout and avoid feeling fear that our area is going to be the next to descend into real estate chaos. Unfortunately that isn't the case and when someone has a lot of equity in their house they can afford to take a hit of $10,000 to $20,000+ to sell their home more quickly, leaving their neighbors (who may have less equity) in a position where they may have a hard time selling their home. It can become a cycle.

Fear can be a powerful motivator in real estate. In a down market it can cause sellers to panic and in a hot market it can cause buyers to offer much more than the listing price so someone else doesn't get "their" home. In an uncertain market it is even more important to arm yourself with as much information as possible to keep fear from making decisions for you or your clients.

- Mortgage markets appear to be stabilizing and where conventional loans have fallen off, FHA loans have stepped up to fill the void

- FHA loan limits in Mesa County have been increased to $371, 250

- VA loans offer incredible terms to eligible borrowers

- FNMA and Freddie Mac have agreed to buy more $15 billion in jumbo loans (which will result in lower rates)

- The jobs market in Grand Junction is one of the best in the state

- The last reason to feel good about buying here is right outside your window. In any direction. We are lucky to live in such a beautiful area.

Things are changing very rapidly and more than ever you need to work with a mortgage company willing to stay on top of these changes to make sure your transactions close and close on time. Give me a call and let's talk about how these market changes could change your business in a positive way.

Kevin Wade

970-243-7800 Office

970-201-2310 Cell

Got 22 Million? American Landmark For Sale

2008-04-23T19:36:00.000-06:00

Hollywood Sign and Land for Sale The land surrounding the world-famous "Hollywood" sign that rises above Los Angeles is for sale, and residents fear that it will be sold for homes. Locals worry that the area will be closed to hikers and sightseers, rather than continue as a historic symbol of motion picture capital of the world.

"That is our Eiffel Tower," says Los Angeles Councilman Tom LaBonge.

Many people had long assumed the property was in the public domain, but actually, its 138 acres belongs to Fox River Financial Resources, Chicago investors who purchased the piece from Howard Hughes’ estate for $1.7 million in 2002. It is now on sale for $22 million.

Ernie Carswell, the real estate practitioner who listed the property, says the sign was originally posted by real estate developers in the 1940s. He believes there is irony in the effort to block real estate development around the site.

"Those letters were a real estate developer's advertisement. That's the whole way the sign got there," he says. "So I think it's the perfect circle."

Source: The Associated Press, Lisa Leff (04/17/2008)

Good Neighbor Awards For Realtors

2008-04-23T19:20:00.001-06:00

REALTOR® Magazine, the official publication of the National Association of REALTORS®, is seeking your help in identifying nominees for the 2008 Good Neighbor Awards. The program--now in its ninth year--recognizes REALTORS® whose extraordinary commitment to community service has helped make their communities better places to live. Deadline for entry is Friday, May 23, 2008.

In November, five winners will be announced in REALTOR® Magazine and will be recognized at the 2008 REALTORS® Conference & Expo in Orlando. Five winners will receive a $10,000 grant for their community cause, travel expenses to the convention, and extensive publicity to benefit their cause. In addition to the winners, five honorable mentions will receive $2,500 grants.

Eligible activities include any volunteer work that helps improve the quality of life in a community. Entry form, rules, judging criteria, and profiles of past winners are available REALTOR®.org.

At the site, click on "AE Resources" to find everything you need to nominate someone or publicize the program to your membership. You will find an application, FAQs, sample stories that can be placed in your newsletters, a four-color ad, and a jpg of the Good Neighbor logo.

Realtors do so much good work in the community, typically with little to no recognition. Take a few minutes to nominate someone and let them know how much they are appreciated.

Kevin Wade
970-243-7800 Office
970-201-2310 Cell

State Investigating Kickback Scheme in Colorado Springs

2008-04-22T14:14:00.003-06:00

The mortgage meltdown on Balsam Street that led to five foreclosures prompted an investigation Tuesday by the state's top real estate cop.

Erin Toll, director of the Colorado Division of Real Estate, said it will be a "high priority" for her staff to determine whether any wrongdoing led to the Balsam foreclosures and "subpoenas are being drafted as we speak."

Her investigation is a response to a formal complaint filed Tuesday by El Paso County Assessor Mark Lowderman, who became suspicious after being questioned by The Gazette for a story published Tuesday about the mortgage meltdown.

"It's on track and it's a high priority," Toll said, urging anyone with information on Balsam Street or other suspicious loans to call her office at 303-894-2166.

"We need to get as many complaints as possible," she said.

Lowderman asked Toll to look into allegations and admissions made by Colorado Springs landscaper Andrew C. Aranda, who bought all five houses within a 48-hour period in November 2006 using $1.9 million obtained from five lenders.

Aranda said he was part of a real estate kickback scheme involving a mortgage broker, real estate agent, appraiser and others.

"We've initiated the process, and we're waiting to see where they go with it," Lowderman said. "They are up to speed."

In his complaint, Lowderman singled out real estate broker Robert B. Teegardin of Teegardin Realty and Investments for investigation.

Aranda said he was approached by Teegardin, a business associate, to buy the houses.

Aranda, 27, told The Gazette that he signed documents suggesting he planned to live in each of the houses, though he never intended to move.

The deception allowed him to obtain 100 percent mortgages at lower interest rates than if he had described the purchases as investments for resale or rental.

All five houses ended up in foreclosure and four have resold, each for about $100,000 less than the price Aranda paid.

Lowderman said he initiated the complaint because he said it's important mortgage fraud be exposed as a deterrent to others.

"We haven't had a highprofile case in Colorado Springs," Lowderman said. "If we can uncover these things, it will help stop this stuff."

Already, Lowderman said he suspects another five houses on Balsam and nearby Fossil Butte Drive may have been involved in a similar real estate kickback scheme.

His suspicions stem from calls he received from people who read a story Tuesday in The Gazette.

They told Lowderman of falsified loan documents and over-appraisals and multiple lenders used to buy new houses - just as Aranda described.

"In one case, it looks like a man bought three houses - one on Balsam and two on Fossil Butte - and another man bought one on Balsam and one on Fossil Butte," Lowderman said.

He said a quick check of sales records showed the transactions followed a similar pattern to the Aranda deals and involve some of the same players.

Lowderman said he was passing the new information to Toll, as well.

Bill Vogrin

The Gazette (Colorado Springs)

The Sky Is Literally The Limit With This New Marketing Idea

2008-04-22T10:02:00.005-06:00

Skywriting has fascinated me since I was a kid. Yes, the art was transitory, but my eyes were glued to the work as it was being crafted in the sky– always trying to guess the message. Alas, skywriting became a lost advertising art. (In an effort to bring it back, I had invented a way to skywrite at night using phosphorescent powder —but only in my head.)
Nowadays,advertising in the sky is limited to small aircraft towing long banners back and forth across the beach fronts of vacationland America. And there is the occasional blimp and hot air balloon. (I have on one occasion seen a plane with a lighted message on its underbelly.) Well, there’s something new in the air.

They are called Flogos, floating logos. They are made of something similar to a soap bubble and sent into the sky by a machine called a flogo generator. The generator pumps flogos through a stencil at the rate of 1 every 15 seconds. The largest size is 48 inches.
The company says its flogos can last from a few minutes to an hour, depending on weather conditions. They can travel 20-30 miles and reach an altitude of 20,000 feet! The current flogos are white like clouds but colored flogos are in the works. Best of all, they are green and environmentally safe.
To learn more, visit flogos.net.

Published by Joseph Ferrara of Sellsius

It looks like these machines are available for short or long term leases. If you are looking for an interesting way to get people talking about your real estate company this just might do it. Imagine the blue skies over Grand Junction covered with your logo. I can almost hear someone telling there friends, "There isn't a cloud in the sky... Except for one shaped like a Re/Max hot air balloon."

Kevin Wade
970-243-7800 Office
970-201-2310 Cell

3 Real Estate Brokerages Subpoenaed

2008-04-21T12:08:00.000-06:00

A state regulator has subpoenaed three Colorado Springs residential brokerages as part of her investigation of whether kickbacks were paid by title companies to have business steered their way by real estate companies and agents.

The investigation stems from allegations that California title company First American Residential Group Inc. agreed to pay $1 million to Denverbased Re/Max International under such an arrangement. Both companies were subpoenaed along with seven other brokerages in Colorado.

The Springs brokerages are not suspected of wrongdoing at this time, said Erin Toll, director of the Colorado Real Estate Division.

But Toll said she suspects title companies paying real estate agencies for customer referrals is a widespread practice. She said she's seeking information from real estate brokerages to find out if they're involved. She said the practice is illegal and can lead to higher title insurance fees.

The three Springs brokerages are Re/Max Properties, McGinnis GMAC Real Estate and Prudential Professional Realtors.

Joe Clement, owner of five Re/Max Properties offices, with 285 agents, said he received a subpoena Friday. He said he has no agreements with title companies, isn't worried about the investigation and will cooperate with Toll.

McGinnis President Charles Brown, with 140 agents in three offices, said he has no such agreements and will cooperate with Toll.

Prudential Professional owner Roger Herman couldn't be reached.

Toll said she can revoke real estate licenses and impose fines of $1,000 per incident of kickbacks.

Rich Laden

The Gazette (Colorado Springs)

Proposed Foreclosure Legislation

2008-04-20T10:15:00.000-06:00

With an eye toward keeping borrowers in their homes, Colorado judges would have the power to halt foreclosure proceedings for 90 days to give mortgage lenders and home owners more time to negotiate arrangements.

The bill, which state lawmakers plan to file this week, also would require banks to inform home owners about mortgage counseling opportunities, such as the state-sponsored mortgage counseling hotline for home owners, which has seen its success rate rise to as high as 80 percent.

"It's better for the borrower, the lender and the people of Colorado if these people stay in their home," says Rep. Mark Ferrandino (D-Denver), a co-sponsor of the legislation.

The sponsors say they are still holding discussions with banks in an effort to make the proposal more acceptable to them.

Source: Denver Post, Jessica Fender (04/14/08)

Some lenders are working with borrowers and some are not, it just depends on the lender. If the lender is inclined and it makes sense to them, they are going to work with the borrower. Foreclosure proceedings in Colorado start after the borrower is approximately 120 days late and once the proceedings start they have at least 75 days to redeem the loan by refinancing (usually with private funds) or selling the property outright. That gives the borrower and the bank over 6 months to work out a deal. If they can't come to terms on a short sale agreement/reworking of the terms of the loan in six months, I don't think another three months is going to do anything other than allow the bad debt to sit out there even longer.

In the long run this could affect lenders lending in Colorado. If the loan goes bad and they can't foreclose until the borrower is at least 9 months behind then they will do one of two things. Stop lending in Colorado or increase the rates in our state across the board to compensate for the risk of potential bad loans.

Foreclosure Awareness Week

2008-04-19T14:25:00.001-06:00

REALTORS® have been invited to join the Colorado Foreclosure Hotline on Monday, April 21, 2008, at 9:00 am at the Colorado State Capitol in the West Foyer, where Colorado Governor Bill Ritter will proclaim April 21-26 as Foreclosure Prevention Awareness Week. Accompanying the Governor in the proclamation will be United States Senator Ken Salazar, CHFA Executive Director/CEO Milroy Alexander, and Colorado Division of Housing Director Kathi Williams.

CHFA, the Colorado Division of Housing, and Brothers Redevelopment have organized various outreach events and activities to occur during the week and thereafter, all meant to raise awareness about the free and professional housing counseling resources available to borrowers at risk of foreclosure through the Colorado Foreclosure Hotline at 1.877.601.HOPE.

Activities planned include radio spots, TV call-in lines, direct mail to at-risk neighborhoods, and the Adams County Housing Fair on April 26. More details about these events will be shared at the kickoff event on April 21.

For more information about Foreclosure Prevention Awareness Week please contact:
Jerilynn MartinezCHFA303.297.7427
Jeff MartinezBrothers Redevelopment303.202.6340 x 4222
Ryan McMakenDivision of Housing303.866.4651

HGTV Dream Home Giveaway 2008

2008-04-17T10:27:00.004-06:00

HGTV is doing it again. Giving away a dream home in Hilton Head South Carolina. An interesting twist this year is that it is a green home. The grand prize winner will receive a home, a GMC hybrid car and environmentally friendly furniture with a value estimated to be $850,000.

Head over to http://www.hgtv.com/ and enter today for your chance to win. You can enter once a day until the entry deadline of May 9th, 2008.

Good luck!

Kevin Wade
970-243-7800 Office
970-201-2310 Cell

Foreclosures Up 57%

2008-04-17T08:10:00.003-06:00

Since March 2007 Foreclosure filings continue to increase, up 5 percent in March over February, and up 57 percent from March 2007. This includes default notices, auction sale notices, and bank repossessions.

"What we're really looking at is ongoing fallout from people overextending themselves to buy homes they couldn't afford and using highly toxic loan products to get into the houses in the first place," Rick Sharga, vice president of marketing at RealtyTrac, an online publisher of foreclosure data.

Sharga predicts a record number of foreclosures in the third or fourth quarter of this year, reflecting a round of rate increases on subprime mortgages in May and June.

Nevada, California and Florida posted the highest rate of foreclosure filings in March, followed by Arizona, Colorado, Georgia, Ohio, Michigan, Massachusetts, and Maryland.

California, Florida, and Ohio report the highest actual number of foreclosures. Other states in the top 10 for total properties with filings are Texas, Georgia, Michigan, Arizona, Illinois, Nevada and Colorado.

Source: Reuters News, Lynn Adler, and RealtyTrac (04/15/2008)

Flyers For Your Open House

2008-04-16T20:40:00.000-06:00

At Cherry Creek Mortgage we understand that if the agents we work with aren't successful we will not be successful either. One of the ways we help you is with a checklist for your open houses. This checklist will help you organize your open house to get the most exposure for your seller.

In addition, we can also provide you with full color, laser flyers with payment scenarios for people walking through the house. These flyers are fully customizable and feature pictures of the listing agent, the property and several different payment scenarios.

Let Cherry Creek Mortgage help make your next open house a success.

Kevin Wade

970-243-7800 Office

970-201-2310 Cell

$2,500 Down Payment Grant

2008-04-16T08:00:00.002-06:00

Did you know that there is a grant program for first time homebuyers or those who have not owned a home in the last three years? This money can be used for down payments or closing costs. You are elgible to receive this grant in the amount of $2,500 provided you meet the following criteria:

1) You purchase your home in Mesa County

2) You meet certain income limits

What are the income limits? You can not make more than: $41,840 for a one person household, $52,320 for a two person household and $60,160 for a household with three or more persons.

If you live in the property for at least 5 years the grant is forgiven completely. That's free money! If you sell the property prior to the five year mark the loan must be paid at a rate of 1/60th of the grant per month that you did not live in the home (up to the 60 month mark).

For more information on this program please contact me:

Kevin Wade

Cherry Creek Mortgage

970-243-7800 - Office

970-201-2310 - Cell

You Have Core Convictions, Shouldn't Your Lender?

2008-04-15T14:00:00.001-06:00

Realtors adhere to a strict code of ethics. Don't you want to work with a lender who places as much of an emphasis on ethics as you?

CHERRY CREEK MORTGAGE COMPANY

CORE CONVICTIONS

1. We are committed to honesty and integrity in all our activities. We seek to employ individuals with strong moral character and the interaction we have with them is always respectfully honest, clear and positive. We are a company that does not sacrifice our integrity for the benefit of profit.

2. We are passionate about serving others. We seek to understand the needs of both our internal and external customers followed by a commitment to exceed those expectations 100% of the time. We know we can only become as much as we give.

3. We desire to learn, adapt and improve. At CCMC, we set high standards and hold our employees accountable to meeting those standards and, as a result, we are measurably better than our competition. We are a company that sets the standard, sets the pace, one that others aspire to be like.

4. We are committed to profitable growth. We are a company that consciously and consistently grows and in this process we become even more efficient while maintaining the highest levels of service to both our internal and external customers.

5. We are focused on managing our risk. We have zero tolerance for fraud and misrepresentation and, when uncovered, our response is always swift, fair and consistent. We are a company that does not sacrifice the future of our customer for the benefit of volume.

Kevin Wade

970-243-7800 - Office
970-201-2310 - Cell

Consequences For Walking Away

2008-04-15T11:08:00.001-06:00

The government and the lending industry are taking aim at “walk-away” home owners who stop making payments and months later send the house keys back to their lender.

Such borrowers will not be able to get another mortgage through Fannie Mae for five years, unless there are “documented extenuating circumstances.” In that case, the prohibition is three years. Even after the prescribed time has elapsed, a borrower with a foreclosure in his file will have to make at least a 10 percent down payment and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan.

Freddie Mac, which counts foreclosures as major credit black mark for seven years, is now aggressively pursuing walk-away borrowers where permitted under state law, a senior official said.

Federal legislation enacted last year allows home owners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven.

Walk-away borrowers, by contrast, have nothing forgiven, and the Internal Revenue Service may demand taxes on the balance they never paid, the IRS says.

Source: Washington Post Writers Group, Kenneth R. Harney (04/12/2008)

I'm not sure how they will be able to differentiate between a seller who simply walked away and a seller who tried to negotiate a short sale in order to sell their house. There is more than likely no interest in differentiating between the two, just an attempt to change the lending guidelines for Fannie Mae and Freddie Mac.

Buyer's Agent Found Not Guilty

2008-04-14T13:45:00.002-06:00

In San Diego County a lawsuit had been filed by buyers who were unhappy with the falling prices in their neighborhood. They sued their buyer's agent claiming that he failed to notify them that comparable homes on their block had sold for less.

The jury stated that they felt the agent had done his job and that ultimately the buyers were responsible for signing the sales contract.

I've always heard it said that friends are the pool from which litigants are drawn. In this ever changing marketplace it is wise to make sure you are doing everything possble to protect your clients interests as well as your own as determined by your status as a buyer's agent or a transaction broker.

Welcome

2008-04-14T13:22:00.001-06:00

This is a new blog about the mortgage and real estate industries in the Grand Valley. Grand Junction has been one the fastest growing and most rapidly appreciating markets in the country and despite the downward trend nationwide, I wanted to start this blog out on a positive note. I will be updating this blog regularly and I hope you find it interesting and helpful in your daily business. I am not a writer and I will prove that often, but I do understand this business and I look forward to getting to know you. If you would like me to blog about something in particular please feel free to contact me.

I work for Cherry Creek Mortgage here in Grand Junction and am in the process of relocating my family to the area. I moved to Grand Junction in 1984 and moved away to Colorado Springs in 1997. With my two small children I feel a pull to come back home to a smaller town so I can share all of the beauty of the western slope with my own kids.

Thank you,
Kevin Wade
970-243-7800