Greg Saunders

Happy New Year everyone!!! Wow, what a year 2010 turned out to be! Yeah with a lagging and slow recovering economy the passing of 2010 for some people was a cheerful sight. But for others, it proved to be a year full of promise and unlimited potential.

By the way did I mention that right now is a great time to buy a home? Okay folks really how many times have you heard that phrase? Is it starting to feel a little cliche-ish? As Realtors and Mortgage professionals we have all made this statement to friends, family, and prospects. In fact, truth be told we have probably had a discussion or two even with investment folks as to how the purchase of a home stacks up to other investments. On the flip side, I've also read and heard that homes are not even considered an investment anymore.

Okay.....with all things considered, how much truth is actually in that statement?

Recently, I was reading an article published by Chris Mayer. You may or may not know him. He is the finance guru that has been featured many times on Market watch and appeared on Fox. Anyway, his article started off talking about how over the last few years it was rare that an investment person would recommend buying a home due to the fact that the housing bubble was deflating. However, prudent investors are again weighing the pros & cons of home sales being a smart investment. One of the biggest advocates buying real estate is multi-billionaire John Paulson, founder and President of Paulson & Company.

If you are not familiar with Paulson he manages a number of loosely regulated investment funds. In 2008 he started a hedge fund that lent money to investment banks and other hedge funds that were feeling the pinch from the approximately $345 billion of write downs resulting from under-performing assets linked to the housing market. Ironically that year the firm also hired former Fed chairman, Allen Greenspan. Paulson has about $35 Billion under his management.

Paulson reportedly raked in $1 billion in 2007; $2 billion in 2008; and $2.3 billion in 2009 as a result of fees received from his hedge funds as a direct result of betting against the sub-prime market long before that term was even coined. In April of 2010, the Wall Street Journal ran an article reporting that Paolo Pellegrini a front man for Paulson was now investing in sub-prime mortgages. Go figure!

So what is the meaning of this antithesis? Hmmmm, not sure! However, it appears that Paulson lust for gold and real estate may be due in part to the incessant money printing by the Feds which he feels will lead the country into double digit inflation by 2012. So let's try and rationalize that thinking.

We all understand that homes represent a real tangible asset. If there is a situation that leads to hyper-inflation, your home will indeed hedge against that hyper-inflation. But won't home prices lag that rate of inflation and wouldn't mortgages become a lot more expensive? Probably! But let's examine thing further.

Folks right now for the first time the rate on 30-year mortgages slipped below that on the 30-year Treasury bond. You can get a 30-year mortgage at just over 4%! Factor in mortgage rates and housing affordability is back to where it was in September 1996. Then mortgage rates were 8% and the average price of a home was $171,600. Yes that means that a person can buy a home right now for a monthly payment that is not to different from the monthly payment one would have paid in September 1996, when rates were significantly higher.

But I hear ya!! Most rational thinking would conclude that if inflation rises to double digits, as indicated by Paulson.....the basement will drop out of bond prices and investors will panic. Meanwhile, interest rates would go through the roof to help compensate bond investors for the value they would lose due to inflation. It can be further assumed that as mortgage rates rise to double digits the impact would drastically reduce the cost of a home the perspective buyer would be able to afford because of an increased mortgage payment. Mr. Bernanke has been trying to avoid that scenario by having the Feds buy up over $1 trillion dollars worth of mortgage bonds.

The net affect of double-digit inflation over several years would result in the adjustment of housing prices and your homes would indeed serve as a hedge.....however, the housing market would still be reeling from the tsunami resulting from skyrocketing mortgage interest rates!

So, how does this scenario play out against say your money invested in a money market account? Well, I'm definitely not an investment strategist or guru but it would appear to me that this same scenario would indeed result in interest rate on those accounts also going up drastically. Can it then be assumed that with the surge in interest rates the nominal rate of return on those investments would be comparable to those of real housing prices? Of course, you are entitled to make your own assumptions.

Well, it all presents an interesting circumstances sure to be debated heavily going forward. Mr. Paulson placed some big poker chips on the table as he has speculated to investors to look for housing prices to go up 8% to 10% nationally this year. Paulson has already added to his stock Beazler Home Builders and increased his stake in Bank of America. But make no mistake about it, Paulson is a player and all eyes are on his investments. Oh by the way, Paulson does have a hedge against the housing market....a huge gold position. That's not to say that gold will drop in price if the housing markettanks or vice-versa.

In the final analysis there is still validity to the statement. If you factor in the adjustment for inflation, the mortgage payment for a home today is about 30% lower than it was 14 years ago. Essentially, real estate is a method to buy now and pay later. Also, the case for housing will extend to other property types. Owners of quality real estate are getting deals on mortgages that we are surely unlikely to see for a generation.

Now is a GREAT time to buy real estate folks!!! Call me, I'm more than happy to assist you! Yeah....Real Estate is back, baby!!!!

Hey folks....given the state of the economy it's no surprise that many of us have a home that is underwater and a mortgage that exceeds the value of the home. An option for many distressed homeowners in that situation has been the utilization of the short sale. This process requires lender approval but provides an option for homeowners to sell their homes for less that what is owned to the lender.

Of course, this process has been a nightmare for homeowners that have had an able and willing buyer only to lose him due in part to the length of time involved in the short sale process. The new legislation, HR 6133, The Prompt Decision of Short Sale Act of 2010 would essentially require lenders to respond to the short sale request in 45 days.

The sponsors of the Bill, Representatives Robert Andrews (D-NJ) and Tom Rooney (R-Fla) feel that this bill would be crucial to the national economy. The Association of Realtors (NAR) has pledged there full support of the Bill. As a leading advocate for home ownership issues, NAR believes that quicker attention to the short sale process is vital to help homeowners who are underwater.

Hey folks you know just the other day I was at the office and I could not help but over hear another agent battling with a bank to replace an incompetent...okay inept bank representative assigned to the short sale he was working. After his called ended we engaged in some interesting dialogue that resulting in him showing me a email reply that he had received from that same bank.

Without mentioning the bank, the email basically stated that the bank in the determination of the current market value of the property did not consider or utilize any foreclosures. In fact the bank went on to say that while foreclosures are prevalent in the marketplace they are not significant enough to essentially impact or be the driving force of sales in the marketplace.

All I could say is; "What??? You have got to be kidding me right? What planet are these guys on?" We both shook our heads. Man, "there is no such thing as an easy real estate transaction anymore."

According to the RealtyTrac U.S. Foreclosures Market Report, foreclosure activity rose 31% during the 1st quarter of 2010 and that's up 40% from the same period in 2009. Georgia reported 39,911 foreclosure filings. Folks, one in every 226 Georgia housing units received a foreclosure notice giving our state the dubious distinction of being the 6th highest state in the country for foreclosures. Walton County posted the highest foreclosure rate (1 in 43 homes received a foreclosure notice); followed by Newton county (1 in 46); Henry County was #3.

Just for the record, Fulton County led the state in total foreclosures for the 1st quarter of 2010 with 5,403 properties with foreclosure filings. Gwinnett County was second with 4,406, Dekalb was third with 4,025, Cobb was fourth with 2,962 and Clayton was fifth with 1,726. All totalled Georgia accounted for 4% of the 932,234 foreclosure filings nationwide.

If you are keeping score....California continues to lead the pack with the highest level of foreclosure activity at 216,263 followed by Florida (153,540), Arizona (55,686), Illinois (45,780) and Michigan (45,732). After all is said and done, the total US foreclosure activity grew by more that 7% as it was reported that 1 in every 138 household received a foreclosure filing during the 1st quarter. All in all the top 10 states with the highest foreclosure rate account for 73% of the foreclosure filings!

Okay folks, given all the statistics what is the key to stimulating our hobbled housing recovery? Well first we must get banks to be more responsive to housing demands. Right now it is becoming increasing more difficult for investors and other potential borrowers to get back in the housing market. This will definitely result in a slowing of the recovery of housing market values. However, I think part of the recovery will have to involve an actually psychological change.

That's right....a change to our views and opinion of the housing market will also be required. If you think about it how many of us after being inundated with the gloom and doom promulgated from our daily dose of the news maybe have detected an altering of our conventional wisdom related to investing. Could it be possible that those changes may have been a prominent factor in some people making the decision not to enter the housing market until the trend changed?

So, what being done? Let's see....at the start of 2009 there were approximately 2.5 million loans that were 60 day plus delinquent or in foreclosure by the end of January of 2010. During that same time frame there were roughly 2 million loan modification in process; 116,000 permanent HAMP modifications, 830,000 trial HAMP mods and 1 million completed non-HAMP modifications. So you do the math....2.5 million loans and 2 million modification.

Additionally, keep in mind that many of the modification or approximately 60% will re-default later. In fact, JP Morgan Chase has notified its investors to expect re-default rates on completed modifications to run about 35% to 50% one year out and as high as 65% three years out.

Folks....the point to be made here is that there is a significant amount of distressed inventory out there despite what some banks as mentioned earlier seem to want you to think. To be perfectly honest, banks are not in the real estate business, period! But it is plausible to say that this distress inventory whether sold REO or short sale needs to be sold if there to be any type of housing recovery.

Lastly, it is imperative that we must also look for interim mortgage debt solutions for many home owners that have lost jobs on in distressed situations.

Hey everyone....it seems that lately in the news gloom & doom continue to be the featured items on the menu. Yeah, its real easy to get caught up in the daily soap opera of event revolving around BP,escalating unemployment, health care, various political escapades, and the economy. Hmmmmm....Crime seems to be on the decline, well at least lately according to statistics. Maybe because it's just been so darn hot everywhere its a health risk now to wear the offical black attire of criminals. Ask the recently celebrated criminal known as the barefoot bandit!

All joking aside folks, it's becoming increasing difficult for folks to find more positive reinforcement of principles and values that we all have instilled in us. You know those things that have taken ordinary folks and enabled then to do extraordinary things. You remember the old saying of the philosopher Plato, "Necessity is the mother of invention." If that is truly the case, could Poverty bethe mother of necessity? Then could it be further assumed that invention may have been planted in necessity's belly by inspiration. Food for thought!

Yeah I know, so many questions, so few answers. But what I do know is that there is a winner or at least winning traits in each of us! Unfortunately most of us never really utilize or perform to our full potential. But if you examine successful people you will find that each possess similar traits. In fact, I recently re-read an article from 2002 by Jeffery J. Mayer on the traits of successful people.

I thought that I would hopefully help inspire you today by sharing those 13 characteristics of successful people! Mayer spent years researching and studying successful folks. The reason for posting these is for us to re-examine ourselves and realize that we possess many of these characteristics yourself. Sure...some of these talents and skills are more dominant than other but the ones we find the easiest to excel at are considered our "strengths."

When you find you need a skill or talent you don't have, just go out and look for a person or group of people with the skills, talents, and training you need. These are the skills and talents that would complement your own. These people will become your teammates, colleagues, co-workers, professional advisors, and friends. With these combined skills and talents you, and even the organization or company you work for will exponentially grow, prosper, and become successful.

These are the five things you'll find every successful person has in common:

1. They have a dream.

2. They have a plan.

3. They have specific knowledge or training.

4. They're willing to work hard.

5. They don't take no for an answer.

Remember: Success begins with a state of mind. You must believe you'll be successful in order to become a success.

The following is a list of the skills, talents, and characteristics you'll find in successful people:

1. Successful People Have a Dream.

They have a well-defined purpose. They have a definite goal. They know what they want. They aren't easily influenced by the thoughts and opinions of others. They have willpower. They have ideas. Their strong desire brings strong results. They go out and do things that others say can't be done.

Remember:

It only takes one sound idea to achieve success.

Remember:

People who excel in life are those who produce results, not excuses. Anybody can come up with excuses and explanations for why he hasn't made it. Those who want to succeed badly enough don't make excuses.

2. Successful People Have Ambition.

They want to accomplish something. They have enthusiasm, commitment, and pride. They have self-discipline. They're willing to work hard and to go the extra mile. They have a burning desire to succeed. They're willing to do whatever it takes to get the job done.

Remember:

With hard work come results. The joy in life comes with working for and achieving something.

3. Successful People Are Strongly Motivated Toward Achievement.

They take great satisfaction in accomplishing a task.

4. Successful People Are Focused.

They concentrate on their main goals and objectives. They don't get sidetracked. They don't procrastinate. They work on the projects that are important, and don't allow those projects to sit until the last minute. They're productive, not just busy.

5. Successful People Learn How to Get Things Done.

They use their skills, talents, energies, and knowledge to the fullest extent possible. They do the things that need to be done, not just the things they like to do. They are willing to work hard and to commit themselves to getting the job done.

Remember:

Happiness is found in doing and accomplishing, not in owning and possessing.

6. Successful People Take Responsibility for Their Actions.

They don't make excuses. They don't blame others. They don't whine and complain.

7. Successful People Look for Solutions to Problems.

They're opportunity minded. When they see opportunities they take advantage of them.

8. Successful People Make Decisions.

They think about the issues and relevant facts, give them adequate deliberation and consideration, and make a decision. Decisions aren't put off or delayed, they're made now!

Success Tip:

Spend more time thinking and planning before you make your decision, and you'll make better decisions.

Success Tip:

When you don't get the expected results from the decision you've made, change your course of action. Decisions should never be carved in stone.

9. Successful People Have the Courage to Admit They've Made a Mistake.

When you make a mistake, admit it, fix it, and move on. Don't waste a lot of time, energy, money, and/or other resources trying to defend a mistake or a bad decision.

Remember:

When people are wrong, they may admit it to themselves. If they are handled gently and tactfully, they may admit it to others and even take pride in their frankness and broad-mindedness. But people become very defensive and angry when others try to cram their mistakes down their throats.

10. Successful People Are Self-Reliant.

They have the skills, talents, and training that are needed in order to be successful.

11. Successful People Have Specific Knowledge, Training, and/or Skills and Talents.

They know the things they need to know to be successful. And when they need information,

knowledge, or skills and talents that they don't possess, they find someone who does possess them.

12. Successful People Work with and Cooperate with Other People.

They have positive, outgoing personalities. They surround themselves with people who offer them help, support, and encouragement. They are leaders.

13. Successful People Are Enthusiastic.

They're excited by what they're doing, and that excitement is contagious. They draw people to them because these people want to work with them, do business with them, and be with them.

Get re-focused, re-energized and go after the life and things that you want to achieve with a renewed vigor. See you at the top...Success will be there waiting on you!

Hey Fayette County & AR...a very important deadline is approaching quickly! Property Assessment notices were sent out on or about May 3rd to all property owners in Fayette county by the Fayette County Board of Assessors. It is their job to provide the fair and uniform appraisal of your property for the specific purpose of determining your proportionate share of taxes.

However, as you probably know many properties are not valued at what they were last year! Needless to say, I'm sure I'd be beating a dead horse if I rehashed the reasons your property may not be worth what it was last year. So I'll save us both the agony. What I will disclose to you is that according to the current appeals process if you think that the value of your home differs from the Assessors "Notice of Value" You can file a written appeal of that notice of value.

Folks....you better do it quick, the deadline is Thursday, June 17, 2010!

For more information on the appeal process go to:

http://www.fayettecountyga.gov/assessors_office/appeals.htm

Contact Information:

Tax Assessors' Office
Stonewall Administrative Complex
140 Stonewall Avenue West
Suite 108
Fayetteville, Georgia 30214
770.305.5402

Chief Appraiser / Director
Joel T. Benton - jbenton@fayettecountyga.gov

Commercial / Industrial Property
Sonya Kennedy - skennedy@fayettecountyga.gov

Personal Property / Mobile Homes
Kathleen Maddox - kmaddox@fayettecountyga.gov

Residential Property
Walter Ponder - wponder@fayettecountyga.gov