Kentucky

Why is it so difficult to do the right thing?

This morning I got up to find a good accumulation od snow on the ground. Where I live that means most everybody now has an excuse to not work, go to school etc......

So I got up and went to my usual Cofffee Spot to sit quietly and read the paper for a change. Not just the Business section as I normally do, but the whole darn paper, even the funnies.

I was reading through the political stuff when I happened upon a story that says "Patyday-bill advocates seek support". Apparently some elected official, you know someone elected by the people to represent the best interests of the people, had submitted a bill before the statehouse. The bill seekd to limit the interest charged on short term "Payday" loans to 36% interest. Seems like a good bill to me. The very people living literally from paycheck to paycheck are being gouged by short term loan companies. At least I think 36% interest and higher on a week long loan seems like gouging to me.

Here's the rub though. The sponsor of the bill is "hopeful" the bill will pass. He is only "hopeful" because the check cashing companies have spent 100's of thousands of dollars lobbying our elected officials, you know the ones elected by us to represent our best interests, to defeat this bill. Imagine the 100's of thousands of dollars the check cashing companies are using no doubt came from the very people the bill seeks to protect.

Why can't our elected officails just do what is right? Why can't the people we elected to look out for our best interests simply do what they were elected to do?

Late last week I went to an appointment with a client to see a few homes for sale in Norton Commons, and had the opportunity to walk through a home built by Stonecroft Homes, and I was immediately impressed with the luxurious finishes I saw. The flooring looked like an upgrade from most other homes available in Norton Commons, along with the entire kitchen package, trim and molding and just about everything else I laid my eyes on. I have attached a sample picture of their work, but if you would like to learn more about these Louisville Custom Home Builders, please visit their website at www.StonecroftHomes.net.

I just attended a seminar to get my head around all the recent RESPA reforms. I was shocked to learn that these reforms will cost $2 BILLION during the first two years, and the total recurring costs of the reforms will be $918 Million, annually (all passed onto the consumer). HUD also estimates that these reforms SHOULD save borrowers $700 per loan. (Frankly, I know very few real estate agents who can decipher a good faith estimate, much less the consumer, but, the government knows what they're doing, right?)

When I have a personal blunder in my life, I ask myself what I could have done differently to avoid it. In this scenario, what could I have done differently as a real estate professional to help avoid the disaster the real estate and finance industry has been in for the past two years? First of all, I could have done a better job of policing my own industry. If I suspected fellow REALTORS were in cahoots with appraisers to inflate home values, I should have filed an ethics complaint. If I suspected wrong doing with a lender, I should have contacted the Department of Financial Institutions. Perhaps, some of the wrong doers could have been stopped sooner and we would have all been spared. The other piece of this puzzle is the consumer piece. When jurors decide to stop a lenders right to foreclosure because the Good faith estimate was less than what the borrower had to bring to closing, how is that fair to the lender? (If there was fraud involved, that is another thing) When the borrower saw that they needed more money to close than initially disclosed, they could have walked away from the closing table, but they did not. They signed a note, which obligated them to repay the debt. You might say, "Well, there the buyer was at the closing, in the moving truck. Where was he going to go if he didn't get this house?" Which is a great question (and what that lender was probably counting on). However, if the consumer had gotten up from the table, I feel certain that lender would have adjusted their fees. Consumers need to walk away sometimes. Consumers also need to be held accountable for their buying decisions. Then, perhaps, they would be more prudent .

The new RESPA changes will put the hammer down on lenders who underestimate fees to consumers (just to get the business), because lenders who underestimate by more than 10% will eat the difference. There are about five closing fees that cannot vary one cent from good faith estimate to the HUD1 settlement statement, or the lender will have to redisclose, thus delaying the closing, driving consumers and REALTORS away from doing future business with them. So, in some ways, this reform could help consumers. However, consumers who shop interest rate only could still end up with unpleaseant surprises. A large percentage of foreclosures are from buyers who unwittingly signed up for an adjustable rate mortgage and could not make the payment after the first rate adjustment.

I want to make it clear - I am not beating up lenders here - there are so many professional, caring lenders out there who have taken a beating from what a few bad apples have done. My goal is to work with my trusted lender during this transition time. I am also reverting back to an old business practice of recommending my buyers meet with the lender face to face (versus internet application). Then, they can ask real time questions and hopefully understand the costs of the loan. We'll see what we all have to say on this topic in a year. Who knows? We may be looking at more costly reforms! UGH!

Wow! I received this letter today and it has touched my heart. I don't normally share things like this, but I am so happy for this client. I received a phone call about a month ago from another family member of this client and she explained that she needed a redesign consultation as soon as I could provide it. I scheduled to go out to the next day.

This client has a beautiful home and a gorgeous master bedroom, but it felt cold and cavernous to her and really was affecting her quality of life. It doesn't help that it was winter and I think that may have had something to do with it. As I was listening to her discuss the issues she had with her bedroom, I realized that it really wouldn't be too hard to fix, even if that meant bending some "staging rules".

The outcome was just what she needed. Her bed now faces the windows instead of the bathroom and it has made a world of difference for her. Her desk was tucked away in a little corner and all she was looking at was a bulletin board - nothing inspiring whatsoever. I normally would not have put a desk in front of a window, but thought that if she had something nice to look at, she might be able to feel less confined in the space.

After I left she purchased new bedding and a few new accents for the room. I couldn't be happier for her. It is a great testimony to how much our living environment affects our state of mind. A shift in a few pieces of furniture and this client has a whole new lease on life. What a blessing to be able to assist her reclaim her space and her peace of mind. It certainly has been a proud day for Staged SO Right.

Here is her letter:

Hello Sheila,

I'm sorry it's taken so long for me to send this to you, but I've been working all this time on incorporating your ideas into my room and am just now coming in the homestretch.

First of all, let me say a big "thank you" for your help - I'm so much happier with my bedroom now! As you may remember, we purchased this house back in September, and I quickly discovered the huge master bedroom that so impressed me initially, quickly became a nightmare when I started decorating; I simply couldn't do anything with it because it was too big! I was already under a great deal of stress due to our recent relocation, plus a serious illness in our family, and I had counted on turning this room into my own little "sanctuary". To not be able to do so was really getting me down, and I was beginning to thoroughly dislike our new house because of that one room (to the point of tears and wishing we had not bought it!). The only time I spent in it was to sleep, but was totally avoiding it otherwise.

But you came in and quickly determined that my furniture simply needed to be rearranged in a more optimal way, and then you went to work, and a nightmare became a beautiful, useful room!! You also gave me really great ideas for updating my decorating, window treatments, and bedding -- plus how to do it all on a shoestring budget. Once I followed your advice, everything fell into place, and now I really love my room. It has become the sanctuary I so wanted. It feels warm and cozy, and I really enjoy spending time here. I couldn't have done it without you!!

I've included a couple of pictures for you; I wish I had a broad lens camera because these pics don't show the room nearly as pretty as it is. Unfortunately, I didn't have any pictures of "before", so I hope you remember how it was compared to how it is now. I simplified the bedding with a chocolate brown comforter and some deep red throw pillows. I totally changed the window treatments by using some ivory sheers I already had and simply added a new chocolate scarf, plus replacing what had been a really hideous door panel with a nice roman shade (again, your suggestion). I also re-covered the desk chair cushion which looks much better.

My last project was to re-cover the sage green bench at the foot of the bed; green just no longer fit in the décor at all; so I bought cream colored upholstery fabric and got out my staple gun - it now looks fantastic! I still have two projects to do - repaint the tray ceiling trim as you suggested, and also to re-cover the chair in either chocolate or deep red (haven't decided just yet, but I know it definitely needs a change. All in all, I have spent less than $300, but feel I have made a priceless investment.

So again, thank you so much. You have such expertise, and you work so effortlessly it is amazing, and end up with such a wonderfully finished product. You can be more than certain that if I ever get stuck again, I will definitely be calling you for help!!

Sincerely,

Vickie Reed

View from the bed

View of the bed

View from the door

Another view

Wish I had thought to take pictures before we started working - I don't know why I didn't. All I did was help her move furniture so aside from talking about the possibilities of what she could, I didn't put any of this together for her. I think she did a great job and it feels the way she needs it to feel. I love that she feels that way and it was no nice of her to share that with me.