Christopher Shearer

Christopher Shearer

During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.

You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.

The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.

Make sure your financial house is in order
If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals.

Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:

• Your W-2s and tax returns for the last two years;
• Your last three months of bank statements; and
• Pay-stubs for the most recent 30 days.

If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.

For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?

Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.

Christopher Shearer

By RUTH SIMON
Financially troubled borrowers may think that foreclosure or a short sale of their home means their mortgage woes are over.

Not necessarily.

Some homeowners are finding that when they sell their homes for less than the outstanding mortgages -- a so-called short sale -- their mortgage companies are going after them for some or all of the difference. Mortgage companies are also sometimes taking legal action to recover unpaid amounts after a foreclosure is completed.

In a growing number of cases, holders of mortgages or home-equity loans are requiring borrowers in short sales to sign a promissory note, which is a written promise to pay back a loan or debt. Real-estate agents and attorneys say they have seen an increase in requests for promissory notes as mortgage companies look to short sales as an alternative to foreclosure.

In many states, lenders have always had the right to pursue former homeowners for unpaid mortgage debt. Yet until recently, most borrowers who ran into trouble were able to refinance or sell their homes and pay off their loans. Now, falling home prices are widening the gap between home values and mortgage balances, and the number of homeowners who can't make their mortgage payments is rising as the economy has weakened. More than 3.8 million homes will be lost in 2009 and 2010 because borrowers can't make their mortgage payments, according to forecasts from Moody's Economy.com.

Some borrowers are surprised to find themselves on the hook. Jodie Byrd sold her home in the Los Angeles area in a short sale last summer after her husband lost his job and the couple realized they wouldn't be able to make their mortgage payments. The sale price covered the $685,000 mortgage, but their lender, Washington Mutual Co., then began pursuing them for the $21,600 balance on their second mortgage.

Ms. Byrd says a clause in their contract gave Washington Mutual the right to pursue the debt, but adds that her real-estate agent said that wasn't likely to happen. The couple eventually settled the claim for $4,000.

A spokesman for J.P. Morgan Chase & Co., which acquired Washington Mutual last year, says it's the company's policy not to comment on individual cases. Speaking generally, he says, "a short sale may resolve the first mortgage, but the second mortgage ... would be a separate negotiation with the lender or servicer."

Some experts say that mortgage companies may pursue leftover debt, or "deficiencies," in greater numbers as the housing market settles. Lenders are "doing everything possible to work with their borrowers and trying to bring stability back to the lending and real-estate market," says Marc Ben-Ezra, an attorney in Ft. Lauderdale, Fla., who represents mortgage companies in foreclosures. "However, the ability to get a deficiency judgment is a valuable right that I think lenders will pursue aggressively in the future as the market stabilizes."

One-Year Moratorium
HSBC Finance, part of the North America unit of HSBC Holdings PLC, has implemented a one-year moratorium on the collection of deficiency balances for short sales and foreclosures that occur after April 1, "given the current economic environment," a company spokeswoman says.

Other mortgage servicers say their actions are often dictated by their contracts with investors or mortgage insurers. Bank of America Corp., for example, will "attempt to seek a promissory note whenever it is feasible" in a short sale "in the interest of protecting investors and shareholders from the losses," a spokeswoman says. In the case of a foreclosure, the investor or insurer "is generally the one who pursues the deficiency, but we do ourselves on some-bank-owned assets," she says.

Not every troubled borrower is hit with such a claim. Often, mortgage companies don't go after borrowers for unpaid amounts either because state laws prohibit or limit such actions or the cost outweighs the potential return. Borrowers subject to a deficiency may also elect to file for bankruptcy in an effort to have the debt discharged.

How a borrower is treated can depend on mortgage company policy, the size of the unpaid debt, whether the borrower has a job or other assets, or whether the home was bought as an investment. "If there isn't a financial hardship ... that's where the investor or mortgage insurer will go after the homeowner for more," says David Knight, a senior vice president at Wells Fargo & Co.'s home-mortgage unit.

A PMI Group Inc. spokesman says the mortgage insurer "primarily target[s] borrowers who are not experiencing hardship -- but those who simply elected to walk away from the property due to its decline in value."

Promissory Notes
Still, the number of short-sale agreements that are made with strings attached is increasing. In the past month and a half, "every short sale I have has had a promissory note or gives the lender the right to collect a deficiency," says Pamela Simmons, an attorney in Soquel, Calif., who represents financially troubled homeowners. Often, the terms are buried in the sale contract, she says.

Regina Rivard, a real-estate consultant in Apollo Beach, Fla., has completed 22 short sales in the past six months. In half of them, the holder of the first or second mortgage required that the borrower sign a promissory note or retained the right to pursue the deficiency. The amounts borrowers were obliged to pay ranged from a few thousand dollars to as much as $100,000, she says.

Some borrowers are balking. Mack Ransom, a mortgage broker in Ashland, Ore., recently brought Countrywide Financial Corp. a short-sale offer for $279,000 -- well below the roughly $415,000 he owes on his two mortgages. Countrywide countered that it would accept a $310,000 bid, provided Mr. Ransom signed a $48,000 promissory note, he says. Mr. Ransom rejected that offer and is pursuing a different short sale.

"I would take the foreclosure and the credit hit over that," he says. A spokeswoman for Bank of America, which acquired Countrywide last year, declined to comment on a specific case, but said: "The company will ask the borrower to sign a promissory note during the short-sale process if dictated by investor guidelines."

Going to Court
Other borrowers who have already gone through foreclosure are being taken to court by mortgage companies for unpaid debt, though such actions are still relatively uncommon. In Lee County, Fla., deficiency actions have increased in the past six months, with most filed by holders of second mortgages, says Charlie Green, clerk of Lee County Circuit Court. "The sale of the property was not enough to cover the total amount that was owed on the note or notes," says Mr. Green, who recently began tracking such filings in response to the increase.

Dunstant King, a cab driver in Boston, refinanced his mortgage in 2007, thinking it would save him money. Instead, his payments increased as the economy slowed. In January, Mr. King, who had a $290,400 mortgage and a $72,600 home-equity loan, lost his home to foreclosure. In February, a lawsuit seeking $92,000 was filed in Suffolk County, Mass., Superior Court on behalf of the loan pool that holds the second mortgage, according to court records.

"I don't have the money to pay them," says Mr. King. "Business is really bad." His attorney, David Dineen of Greater Boston Legal Services, says, "We believe Mr. King has legal defenses" to avoid that debt.

A spokesman for Deutsche Bank AG, the trustee for the loan pool, says that the decision to file the lawsuit was made by the mortgage-servicing company, Franklin Credit Management Corp. Franklin executives did not respond to requests for comment.

Blake Brewer, an attorney in Independence, Ohio, is currently representing a borrower who completed a short sale with the approval of his lender, National City Corp. The following year, Mr. Brewer's client was sued for the $65,000 loan balance, plus accrued interest, on his home-equity line of credit. The borrower "fully believed National City understood they weren't going to get paid," says Mr. Brewer.

A spokesman for PNC Corp., which acquired National City late last year, said the company's policy is not to comment on pending litigation.

■Write to Ruth Simon at ruth.simon@wsj.com
Printed in The Wall Street Journal, page D1

Christopher Shearer

Thinking of my son Jordan Christopher Shearer who lives in Austin, Tx, I read this and it so described how I feel and how much I love and miss my son.

A Separation
by James B. Smith

I speak of a bond,
Knowing in my heart it must be.
Yet,
Never will I feel this bond,
This I fear.

I am older age now,
With greater understanding.
Yet,
I know,
No matter how great my success,
My success in life,
This void can only be filled by one.

He left with words,
Words,
Words reflecting someone else's view.
Yet,
Not once,
Reflecting on what had come to pass.
A colored view perhaps,
A view none the less,
One to allow him to move on,
Move on from the past.

The scars,
As if canyons were opened.
And now,
Time acts as the wind and rain,
Constantly exposing the earth,
Beneath her covered surface.
Yet,
While we could not move enough mountains,
So, as to fill these canyons,
My scars,
My pain,
Might be filled,
By the simplest of things.

A warm embrace,
Perhaps more than one.
A touch,
A touch to say I am O.K.
A look,
A look to say,
Maybe,
Just maybe,
I am the son,
The son he always wanted.

And finally,
A tear,
As if to say,
Just how much,
How much I really was missed,
And maybe even needed,
Needed at those many moments of despair.
For I know,
It is because of him,
Because of him I am here,
And to think that life could truly be,
As one alone,
Is to be a fool.

It is said,
Said that life begins,
Alone,
And that life ends,
Alone.
Yet,
Now I know,
Life is much to the contrary,
For I know,
That we could not exist without one another.

Yet,
I speak not of this,
For it is my being that cries,
My soul that weeps,
It is my soul,
My soul that can never be complete,
Without this,
The love,
The love of both him and her.

And to think,
To think I may never know,
I may never know this completeness.

Yet,
I will always love you,
I love you Jordan Christopher Shearer

Christopher Shearer

I miss my son Jordan Christopher Shearer and as I read this article I was thinking how much I love and miss him.

The Case for Father Custody

It is fatherhood that makes childhood possible.

by Daniel Amneus

A judge will try a divorce case in the morning and place the children in the mother's custody. He will try a criminal case in the afternoon and send a man to prison for robbing a liquor store. The chances are three out of four that the criminal he sends to prison grew up in a female headed household just like the one he himself created that morning when he tried the divorce case.[1] He can't see any connection between the two cases. The time lag prevents him: the kids he placed in the mother's custody were toddlers and the criminal he sent to prison was in his teens or twenties. Toddlers don't rob liquor stores.

Besides, most fatherless boys don't grow up to rob liquor stores and most fatherless girls don't grow up to breed illegitimate children. Therefore what? Therefore the legal policy of giving custody to mothers is OK? Therefore we can ignore the increased probability that fatherlessness will create delinquency?

This is the "safe drunk driver argument." Most drunk drivers don't get in accidents. They get home safely and sleep it off. Therefore drunk driving is OK.

It's not OK. And exiling fathers from families is not OK. The fact that will not go away is stated by sociologist David Popenoe in his recent book Life Without Father:

The negative consequences of fatherlessness are all around us. They affect children, women, and men. Evidence indicating damage to children has accumulated in near tidal-wave proportions. Fatherless children experience significantly more physical, emotional, and behavioral problems than do children growing up in intact families.

Why do Judges routinely award custody of children to mothers when they try a divorce case? Two reasons. The first is that motherhood is more solidly based in biology. Motherhood is a biological fact, as Margaret Mead says, fatherhood merely a social invention. Mammals and motherhood originated two hundred million years ago, when the dinosaurs were young. Fatherhood in the sense of major male participation in reproduction is, from the point of view of evolution, a recent development. Fatherhood in the sense of male headship of the stable patriarchal families which make civilization possible is only about five thousand years old, as feminist Dr. Gerda Lerner has shown in her book The Creation of Patriarchy. Prior to the Patriarchal Revolution human reproduction followed the ghetto pattern, where the mother was the primary parent, and the father was a mere boyfriend who could be discarded when the mother got tired of him.

The second reason why judges favor mother custody is their recognition that women and children are dependent creatures. This was formerly understood to mean they needed husbands and fathers. But husbands and fathers require authority if they are to function as providers and protectors. ("He shall rule over thee," God says to Eve, Genesis 3:16.) Without the sexual loyalty of wives there can be no family. Patriarchal civilization depends on female chastity. Without it men cannot have families and children cannot have fathers.

This is the hitch, the reason we have a feminist revolution: Females dislike sexual regulation. Feminists say "A woman needs a man like a fish needs a bicycle," "A woman has a sacred right to control her own sexuality," "End human sacrifice! Don't get married!" Women's primary object, according to feminist Anne Donchin, is to create a society in which "women can shape their reproductive experiences to further ends of their own choosing."

This is the feminist program. It's succeeding. Marriage is becoming meaningless. "Family law," says Brenda Hoggett, former British law commissioner responsible for family law,

no longer makes any attempt to buttress the stability of marriage or any other union. It has adopted principles for the protection of children and dependent spouses which could be made equally applicable to the unmarried. In such circumstances, the piecemeal erosion of the distinction between marriage and non-married cohabitation may be expected to continue. Logically we have already reached a point at which, rather than discussing which remedies should now be extended to the unmarried, we should be considering whether the legal institution of marriage continues to serve any useful purpose.

The emphasized sentence means marriage no longer grants the husband any rights whatever--only the obligation of giving up his children and accepting slavery--laboring for the benefit of another person, his ex-wife. (Or equally his ex-girlfriend, since marriage makes no difference.) "The courts have abandoned," says Ms. Hoggett,

the concept of breach of matrimonial obligations--and their powers of adjustment of property interests in the long term are now so extensive that ordering one spouse from his own home no longer seems so drastic. Far from ordering spouses to stay together, courts are increasingly able and willing to help them separate.

This is the female kinship system, matriarchy, the condition of the ghettos--made tolerable for the female by the male's acceptance of slavery.

A Georgia judge named Robert Noland shows how the legal system thinks: "I ain't never seen a calf following a bull. They always follow the cow. So I always give custody to the mammas." The reason Judge Noland never saw a calf following a bull is that cattle don't live in two-parent households. If we want to live like cattle, Judge Noland has the right idea. But human beings differ from cattle and the difference is created by fathers.

A green turtle--a reptile--begins its existence as an egg and never learns it has a mother or a father. Its mother's participation in its existence consists of conceiving and gestating it and burying the resulting egg in the sand. After remaining there and maturing awhile, it emerges from the sand and waddles down to the water to find a meal--or to become a meal for some other creature. It is self contained and lives on its own inherited resources or it dies.

Mammals came into existence during the Age of Reptiles. Mammalian mothers cherish their young, feed them from their own body, protect them, educate them. If you have a cat with kittens you can witness how mammalian motherhood works--how meaningful motherhood is, and how irrelevant merely biological fatherhood is once the father has performed his minuscule sexual function. Motherhood enables the kitten to have an infancy. This is the relationship which Judge Noland understands and seeks to preserve by awarding custody to mothers.

The kitten has no childhood. After a rather short period of helpless infancy, the kitten is almost suddenly a mature adult capable of fending for itself like the baby turtle after it emerges from its egg.

It was John Fiske, the nineteenth century American historian and philosopher, who pointed out what made human beings special-- and more successful than other mammals: the prolongation not only of infancy, but the creation of a whole additional era of life, childhood, something unknown in any other species--so that human children can enjoy an enormously long period during which they are protected, cherished, educable, playful, exploratory, sensitive and aware, a period during which they can reach out and learn about and come to love the world they live in.

It is fatherhood which makes childhood possible. It is father absence which creates ghettos and gangs and messed-up kids--boys trying to find their identity through violence, girls trying to find their identity through sexual promiscuity, which will lead to the violence of the next generation. They need real fathers, "sociological fathers," not mere studs interested in sharing a one- night stand with Mom.

Sociological fatherhood is real fatherhood, as Margaret Mead says, "a social invention." In the ghettos the biological fathers are seldom sociological fathers. They aren't good for much because Mom's sexual disloyalty denies them the role of sociological fatherhood. Lawmakers and politicians don't understand what Margaret Mead tells them, that fatherhood is a social invention, that it must be created and maintained by society. They suppose, as Judge Robert Noland supposes, that humans can live like cattle, without fathers.

Until lawmakers and judges see that they must support the father's role because it is the weak link in the family we will have more matriarchy--along with its familiar accompaniments: crime, educational failure, illegitimacy, teen suicide, gangs and the rest.

Notes:
1. 85% of all youths sitting in prisons grew up in a fatherless home Fulton Co. Georgia Jail Populations, Texas Dept. of Corrections, 1992. Statistics from other states show similar results.

From: http://www.fathermag.com/9607/father-custody/

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Read Dan Amneus' book, The Case for Father Custody

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