About Wexford County, MI

Michigan winter weather.... snow, ice, blowing, drifting... now raining, pouring, heavy rain overnight...tomorrow dropping temps and lots of snow.

We have change of seasons 24/7 with spring like driving one day and winter the next. Ice hidden under the snow is now slippery and exposed. Today dropping off an offer, I took a step and did the Watusi. My version of a ballet with the spinning splits on ice!

I did this at a busy intersection parking lot. I did get a few honks and I took a bow! They enjoyed my little unexpected dance. It could have been very ugly just as easily with a fracture or head injury instead of some entertainment for passersby. I saw the ice and was prepared for a little slip and slide.

Be safe and prepared both personally at home and in your car. Weather changes the equation in northern climates. Other areas of the country have their own challenges with conditions that change.

The issues we face is living in these conditions and becoming adusted without making adjustments.

Have a great week and think a bit more about your weather conditions.

Gary White, Flexit Realty Grand Rapids Michigan www.FlexitRealty.com

It may be time to look at real estate for its investment benefits. NOW is a great time to buy! With so many properties to choose from, buyers have more strategies to choose from. Here in Cadillac, MI there are more foreclosures availabe for sale than ever before, many single family homes, even multi-family homes & with interest rates still at an all time low housing is much more affordable. In the last year I've been selling homes for $6,100, $12,500, $13,000, $14,500, $20,000 even $21,000 for a 3 bedroom with a pole barn & 10 acres! Unbelievable prices!!

A home can hedge against inflation & usually tends to appreciate over the years providing you paid the "right" price, not too much at the time of purchase. Owning a house can help with wealth building, enhance your credit score & may be used as an asset to finance buisness ventures, college tuition, even retirement. Some people say paper investments (like mutual funds) don't have to be painted or maintained, but you can't live in them either. It's a great time to buy real estate!

In today's wireless world it is more important than ever to stay connected. We all know to well that technology isn't slowing down. We are often left wondering how that computer we bought just 2 years ago isn't working so well anymore. Often the same is true for our pocket books. The money we made just a few years ago isn't doing as much for us. Top that with the fact many have lost a part of their income, the prospects of affording that technologically advanced computer may be slim.

For most of us that means trying to find that bargain at "box stores" (WalMart, Best Buy, etc.). As a long time financial supporter of WalMart's low prices, I can honestly tell you shopping a box store for a computer may not always the best choice.

Specialty computer stores are conscious of not only the financial restraints facing consumers, manufacturers are extending incentives to computer stores so they can be competitive with the large box stores.

I had been shopping for a computer with above average computing power that would be easily upgraded and keep up with technology growth. I wanted all this for under $500.00. Okay, call me crazy that I should expect a 64-bit operating system, Duo Core 2 GHz processor, 300+ GB hard drive, 4GB memory, etc., with upgradeable options for under $500.00. I certainly didn't find that at any box store and was about ready to give up when I decided to stop by our local computer store.

Not only did I find the computer I was looking for, for the price I wanted, Jeremiah at Cadillac Computer transferred all my files and made sure the computer was running at full potential. Along with the purchase came the assurance that should we have any problems with the computer, we can rely on Cadillac Computer to service the computer with out the lengthy time it takes a box store to "fix" a computer. In all honesty, most box stores do not have computer technicians on staff, and will if pressed admit it.

Working with Cadillac Computer I was also made aware that they could sell my old computers on EBay. If I get half of what Jeremiah said was possible to get for the computers it will pay for the new one. While not every computer store will re-sell your old computer, many have recycling services available.

We all know how important it is to buy local and support local companies. We just may not always be aware of how local companies are making extra ordinary efforts to support you, the local consumer. I want to encourage everyone to stop by your local computer store before you buy that next computer. If you happen to live around Cadillac Michigan, stop by Cadillac Computer and tell Jeremiah that Tony Zimmerman sent you.

BTW, they also have better pricing on cooling pads than any where else!

There has been a lot of news coming out of Washington lately about the housing and foreclosure crisis. I get many questions from people who want to know if they "qualify" for help. That's why I am going to briefly explain the highlights of President Obama's plan to reduce foreclosures. It is estimated (by the government) that this plan will help up to 9 million homeowners. According to the Mortgage Bankers Association, there are about 51 million first mortgages in the United States which means about 18% of the total might qualify. On March 4, 2009 we finally were given the "details" everyone has been waiting to hear. Please keep in mind that this is just a summary and that there are additional details. You can learn more about the plan by going to the US Government website: www.financialstability.gov.

The new initiative is being called "Making Home Affordable" (also known as MHA); here's just a few of the government acronyms to keep track of: TARP, TALF, H4H, GSE, FNMA, FLHMC, PITI, FHA, VA, USDA, etc. It's starting to get a bit crazy, even for real estate and finance professionals.

There are essentially 2 parts to the program: The first is a plan to refinance eligible mortgages and it is being referred to as "Home Affordable Refinance". The other part deals with loan modifications and is known as..."Home Affordable Modification". It's just a matter of time until these are called "HAR" & "HAM".

First the HAR (Home Affordable Refinance):

• The current mortgage must be owned or guaranteed by either Fannie Mae (FNMA) or Freddie Mac (FLHMC). If you are not sure if your mortgage meets this first requirement, you can call (800) 7FANNIE or (800)7FREDDIE between 8am - 8pm EST.
• The property MUST be your primary residence. Second Homes and Investment Properties do not qualify.
• The borrower(s) have sufficient income to qualify.
• The mortgage must be up to date with no 30 day delinquencies in the last 12 months.
• The first mortgage cannot exceed 105% of the current market value. Example: If the property is worth $100,000, the maximum that can be owed is $105,000.
• If there are additional mortgages (Second Mortgage, Home Equity Line of Credit, or other liens), the other lien holders must be willing to subordinate their liens in writing to the new first mortgage. Subordinate simply means that the first mortgage will retain it's superior lien position. It is OK if the total owed exceeds 105% of current value, as long as the first mortgage refinance does not exceed the 105% rule.
• The program officially started 3/4/2009.

Now comes the HAM (Home Affordable Modification):

• To be eligible, the Lender must be willing to participate. Investor/Lender & Servicer participation is voluntary on their part.
• The intention of the program is to avoid foreclosures whenever possible. Each case is evaluated separately and borrowers must prove that they can afford the modified payment. There must be a steady source of income to be eligible.
• There must be a documented financial hardship to qualify.
• The current monthly PITI (Principle, Interest, Taxes, & Insurance Total) must exceed 31% of the borrower(s) gross monthly income. No jokes allowed about the "PITI" acronym.
• The borrowers do not need to be current on the monthly payments. Again, each situation is unique and will be evaluated on a case-by-case basis.
• The goal of the plan is to reduce the total housing PITI payment for all mortgages to no more that 31% of gross income. This includes any second mortgages or HELOCS who must be willing to participate and subordinate their liens to the new modified mortgage.
• The subject first mortgage must be for the Borrower's primary residence. Second homes and investment properties are not eligible.
• The subject mortgage must have been made before 1/1/2009 and it cannot exceed $729,750. I am sure there is a reason that they used $729,750 as the maximum, but I cannot find any information about how the government arrived at this amount.
• The payment reduction will be achieved by reducing the interest rate, extending the term of the loan, or by a principle reduction (last resort). Remember, this is voluntary on the lender/investor and/or servicer's part.
• Modifications are for a 90 day "trial" period. If the borrower(s) honor all of the terms during the 90 day trial, then the modification will be extended for a term of no less than 5 years.
• Beginning in year 6, the interest rate can be increased by no more than 1% per year until the note rate reaches the "Freddie Mac Primary Mortgage Market Survey Rate" on the date that the modification is executed.

Since this article was intended to be a "brief" general summary of the "highlights", I will stop here. There are additional terms and conditions that can be found at www.financialstability.gov.

Let's all hope that this new initiative is more successful than the Hope for Homeowners Program (H4H) that started October 1, 2008. The following article was published recently by Time Magazine:

Grade: F

The Plan: Enacted on Oct. 1, Hope for Homeowners was to be the main foreclosure rescue plan from Congress, which allocated $300 billion for the effort. Supporters in Congress, like Massachusetts Representative Barney Frank, said the program would allow hundreds of thousands of borrowers, perhaps millions, to refinance into lower-cost loans by cutting the amount they owed, which for many at-risk-of-default homeowners was more than their house was worth.

The Result: So how many people has Hope for Homeowners saved from foreclosure? Zero. There have been 326 applications in the three months since the program started, but none of those people - let alone the nearly 6 million homeowners who, by some estimates, may face foreclosure in the next few years - have received a new mortgage or a modification for the one they have. What's more, none of the major mortgage lenders, such as Bank of America, Citigroup and Wells Fargo, has signed on to the loan-principal-reduction program - which gives Hope for Homeowners little chance of being successful anytime soon. "Foreclosure is the problem we have to spend a lot more effort trying to solve," says the Economic Policy Institute's Robert Scott. "We need to put a floor under housing prices, and stopping foreclosures is the way you do that."

Please keep in mind that this is my interpretation of the guidelines and that all information should be independently verified. Finally, please remember...since this is a government program, all rules and guidelines are subject to change. Stay tuned.......and make it a great day!

I thought you should think this over if you are a broker and recruiting agents.

I have decided not to hire agents but select them! This may sound like a non-issue but just like any other profession we have good and bad agents...we have good and bad brokers too!

As a broker our business is only as good as our agents and the representation methods they use. This past week I was interviewing an agent. The nice part he was a referral from a broker leaving the business that I had know for some 10 years.

The broker gave me a great recommendation and the agent seemed to have a clear background history. I did my normal checks. I called the local MLS broad to see how long he has been a member. I found he has been in good standing for over five years and no problems. I did my other checks with the state to check the felony registry and licensing division and nothing. I called a couple of other of my agents to see if they new him...nothing.

So to me he had been clean and doing what he should have been doing selling property without issue.

I did my normal presentation on the company and then I moved into the legal area of representation and what I expect. How to contact me when and if an issue comes up. What to do and how to respond when a question comes up that he cannot answer. All the standard stuff.

I summarize by saying I don't want anyone to walk on the grey line of the law...and if you cross to the dark side...you will be dismissed...without question and immediately. So if you have a question if it is legal or even in the grey area, best not to do it...or call before taking any action.

He starts laughing....I have no clue what was funny...I just told him I would fire his butt if he didn't do things by the book and he is laughing? Then he says...This is exactly the kind of brokerage I want to work for IF I quit my day job!

Of course that make me ask "What do you do for your day job?".....do you know what is coming? I didn't....he says, "I am the Assistant Prosecuting Attorney!" You could have blown me over with a feather...I had no idea who he was...and it never came up in my background checks on him either.

Then I said to him.....WHY did you let me go through all this stuff and the legal presentation. He laughs and says, hey I put people in jail I am a criminal lawyer....I sell investment real estate and don't know all the legal ins and outs of real estate...you do...will you hire me?

Yup, you're hired! That is one agent I am glad is on my side! Not every broker can say they have the Assistant Prosecuting Attorney as an agent. Some may not want him that close to their operation either!

If you are a licensed agent in Michigan and wondering what to do...I can show you how to thrive not just survive! It is only a conversation but it could change your career. Drop me an email to set up an appointment for a personal and confidential interview. garywhite@FlexitRealty.com