Susan Templeton

Nosediving starts to feel normal after a while. So a two day hike up in the stock market is met with waxing lyrical soothsayers promising the worst is behind us. Who among us believes this bunk?

Reality check: The FDIC released a report today that admits 305 banks are on their watch list now...the highest number since 1994. Since 25 banks were seized by the FDIC in 2008, up from 3 in 2007, that's an 800+% increase of failed banks in one year. One year.

2009 Trends The yo-yo effect on mortgage rates and changes in terms, timing and reliability of our banking partners to perform on the simplest transaction has created high anxiety in everything real estate and our investors, realtors, appraisers, inspectors, contractors....all of us here.

What about the Rescue Programs? It's pretty tough for a stressed borrower to qualify at 31% DTI in a home they probably couldn't afford to start with. Rescue programs are designed primarily to rescue the banks, not the borrowers. Get over it...this is how our financial institutions and government works to perpetuate itself.

Priorities folks: It is worth asking ourselves lust how long we will sit idly by and let our government prop up industries whose bottom lines are getting worse and worse by the day. Who is pulling the strings? Big business in protection mode has a lot more power behind the scenes than we the passive people. If the FED tightens money policy it could easily backfire. As consumers sense the disconnect, they tend to pull in their horns and stop buying more than toothpaste and toilet paper and depression becomes a fact of life.

Essentially the question is are we prepared to change? We can choose, literally, to get on the bus. Park our cars and open our homes to friends who have lost their jobs and start community gardens in our own back yards. How Creative are we? how flexible, resilient, resourceful, willing to try something new, open our hearts, and just maybe save our skins and get some real satisfaction in living more fully...creatively...in the process.

Being Human: I cannot be the ever smiling all things to all people with all the right answers all the time and of course I locked your loan without an appraisal at 4.5% miracle worker while staving off your foreclosure. I'm feeling very grateful to manage a few more successful closings against a few I sent to my modification referral partner.

Turning Energy: My Tai Chi instructor once taught me how to turn and go with the energy of an attacker...and learn to walk the same path. Exchange ideas. Listen. Maybe a little kindness would go a long way to healing and feeding our souls and recharging our batteries so we can figure out some new ways to solve old problems? Maybe a little joy would also go a long way to helping us get over our greed, ignorance and anger at life for tossing these curve balls into our comfy delusion that everything is OK.

I will: spend a few moments longer in my garden feeding the birds and appreciating what I have every day. Listen a moment longer to every person for that sound in their voice that says what is really on their mind. Admit that I am human, with ideas but no guarantees and I really want to help. And remember to get more sleep!

Peace from the far Northwest Corner! Loannetter

WHAT--You haven't heard of biznik? It was started by a Dan McComb and his team of technogeeks in Seattle, WA and it's really taken off. It's all about meeting up in real life by using online network tools. This social networking site is really ripe for creative community builders like Active Rain movers and shakers to start their own communities, as many have.

First: JOIN www.biznik.com and create your profile like so: http://biznik.com/members/susan-templeton

You can opt to be a freebie for a while or select a higher level of access/tools. Like adding links to your networks and associations and more of your details like logos. Biznik also features an online message center so you can send and receive messages to others in confidence...neat trick! Like exchanging ideas on where to stay when a mad mob of us take Amtrak from Bellingham to Portland for a business hootenanny on wheels...woo-woo!

Next, Share Your Expertise: Write an article on a topic of interest to others (not selling yourself) http://biznik.com/members/susan-templeton/articles/hope-for-entrepreneurs-obama-rescue-plan Dan's team actually moderates, rates and publishes with care.

Kick the Tires:Peruse subjects dear to your heart and pick up a wealth of information: Here's a jampacked article on Web Tools: http://biznik.com/articles/the-best-web-design-tools

Start a Group: (I just did) http://biznik.com/groups/focus-northwestand you can join any number of interesting groups. Within which your events and comments get posted. Hey I even got all the members of my real life network to sponsor a breakfast event which spurred this online group as a way to encourage interest and enliven our meetings.

Sponsor an Event in Real Time: Here's my next planned event: http://biznik.com/groups/focus-northwest/events/growing-your-business-using-opm-2-to-sba-or-not-to-sba

Post a Promotion: Offer something of value like a great juicy carrot to assist interest in your event or idea...again testing the water to see what gets a bite! http://biznik.com/members/susan-templeton/promotions/get-your-free-pro-finance-outline

DEEP BREATH: rsvp and actually attend an event!The vision is to bring people together who wouldnot normally get to meet. You cans search the site for relevant events in your locale and rsvp. before you go you can see who else is going and comment, ask questions, be prepared. VERY cool way to get us out of our little cocoons. The administrators are organized: they even provide name tag templates for your meeting and an online attendance sheet with feedback options to gauge the effectiveness of your meetings.

You can certainly copycat some of the amazing business tips on this site. Biznik is going national so join or start your own local community...and like Active Rain the basic level is free. Now I'm not trying to steal Active Rainers...by all means LINK YOUR BLOGS here to Biznik and create more traffic your way. You can put a bug on your website to take you to your biznik profile and as we all know in internet land, the more back links the better!

Test Market New Ideas:I sponsored a test event on Growing Your Business Using OPM 1: and it was great to see what questions came up and how folks related on the topic. I held a casual after work setting in my office. I was struck with how people come with open minds and shared ideas.

Widen Your Net: I meet folks I would never have met through normal channels and for my event, they came to my office so they now know where to find me. The great thing about the meeting structure is the goal that the subject be 95% helpful and 5% or less 'about you'. What a relief that anyone who shows up for a biznik social knows they won't be hit with "buy me buy me"! Many events are just social wine tastings or opportunities to mingle while others have drawn hundreds on a very hot topic. Take your pick!

GO FOR THE BUZZ! It pays to get up to speed and DRIVE business to your door. Using all the social media and personal skills in your toolkit. Enjoy!

Happy Spring ! Loannetter

susan templeton mortgage planner www.loannetter.com

HELP FOR HOMEOWNERS is working! Our Fannie Mae Freddie Mac lenders are rolling out the new 105% DU- refinance for folks whose home is underwater with a mortgage higher than the house value. If you have a loan without Mortgage Insurance now (would have been 80% 1st or an 80/20%) combo then the good news is you won't have Mortgage Insurance even though the loan to value may exceed 105% on the first mortgage after your refinance! Credit scores are a little more flexible but these are not for 'stressed borrowers'.

Rates are very competitive...in the low 5% range for primary home depending on risk factors. You can also refinance an investment property! Look up your property address so see if you have a Fannie or Freddie:

BELOW IS THE FIRST STEP to establish who owns the mortgage now:

Click this link to if you have a Freddie: http://www.freddiemac.com/avoidforeclosure/

If you do, all Freddie Mac: loans must be refinanced with the lender that is currently servicing the loan and must be refinanced as another Freddie Mac loan.

• If the new payment does not increase >20%, the loan may qualify for Stated Income & Stated Assets (wow)!
• Appraisal Waivers will be available in certain circumstances!
• Max 4 financed properties in total

Click this link to if you have a Fannie: http://www.fanniemae.com/index.jhtml

Fannie Mae: loans can be refinanced with any lender but must be refinanced as another Fannie Mae loan.

• Not servicer-specific (we pick your lender for best terms/rates)
• May not require an appraisal (underwriter prerogative to call for one)
• Desktop Underwriting Approve/Eligible only (we handle the DU pre-submission here)
• No limit to number of financed properties!

What are other options if you don't have a Fannie or Freddie?

FHA, Conventional, Modification....take your pick! Get thee to a broker and review your options since loan terms have changed so much this year. If you are financially stressed and need some payment relief, Loan Modification programs are working well here ...some really amazing results but it can take 90 days to achieve the desired results. Be patient either way. High volumes are slowing things down across the board. Get in early and be prepared to work a little.

Time to BUY! Spring has sprung and the soft market means a lot of sellers are negotiating. A great time for first timers to get on the bus! Rates couldn't be better...still under 5% for better credit. We are seeing a lot of local folks who never thought they could buy in the market now for all the right reasons. USDA (Rural Loans) FHA, VA, Conventional...all are finding their mark with such competitive fixed rates.

TRENDS FRIENDS! While our local sales are down by 30% and prices are down around 7% from last year, our eye popping low rates and loan options on offer are making this look like a very busy summer in the Pacific Northwest. Regardless of who you believe about a mooted economic recovery this is a great time to buy. Competition in the below $300K price range is actually fierce --I have seen multiple bids on homes in the short sales arena in particular. Don't miss this boat!

Happy Spring ! Loannetter

susan templeton mortgage planner www.loannetter.com

Len Harley's feature on Mod Scams is timely: I have been researching the issue and found 4 solutions that work for folks who are underwater and do not qualify for the Fannie/Freddie brand of Loan Modification.

1. The borrower negotiates directly themselves. After all your promissory note is a contractual agreement between two parties. Problem here is lenders strong-arm you and make you feel like a criminal for asking. (By the way, that's what happens if you call Hope Now the HUD hot line...they prequal and just turn you over to your lender to fend for yourself with little results to date)

2. Hire a modification specialist attorney. A real one who knows both real estate and mortgage law.... expect 6 months to a year and cost $10K or more. In really complicated cases I know it works and the results can be amazing if you have the right person actually on your team. Forget prepaid legal. They are about as skilled as the collection agencies. If there is any sniff of fraud on your loan this is the best way to go because the lender is legally responsible for underwriting your mortgage to RESPA and they are very afraid of being found in violation.

3. Find a bonafide loan modification company: In Washington state there are a handful who have been successfully modifying loans for about a year under the watchful eye of our very engaged Attorney General, Rob McKenna. Expect to pay a $750 deposit on phase one ($750 due at completion with refund of all but $300 if not successful) our SAG and Dept of Financial Institutions worked on this together and 20 states to follow as outlined in their new bill/law just released this month. OH, and loan modification people must be licensed loan officers or brokers who are both bonded and insured and put your deposit in an escrow account or trust fund. Expect to be engaged in the process and for it to take 60-90 days minimum. (I know folks who have benefitted from this approach because its based on what they can actually afford to pay.)

4. Get a BK specialisty attorney to advise if Chapter 7 or a combination of 7 and Chapter 13 will help you save your home. You must be able to handle a reduced mortgage for at least a couple of years or more...during which time your equity and your credit might start to recover.

The BEST PART of the Obama Rescue Home Affordable Plan is that is has brought the concept of Loan Modification out of the dark closets and back alleys. Follks are getting results. The fog is lifting. AND for those who are wondering...these options are not limited to primary residences. Ask yourself why a lender would not want to modify an investment or commercial property? If anything it's even more likely that an overburdened investor would walk away from a rental first and save their home...you get the picture. My motto: "If you don't ask you don't get...so ASK!"

All the Best! EQUITY TALKS

susan templeton mortgage planner www.loannetter.com

HOT RURAL NEWS: New Country Home Loans for Hobby Farms: To date, the upside down value of land to homes in our area (due to high land values) have made funding a small hobby farm or home on acreage prohibitive. The rural, laid back beauty of our region has drawn many folks here for their 'patch of green' to grow a few apples or lavenders or just elbow room and a few horses. We've been hard pressed to find lenders for properties over 5 acres. At last we have some new options for home owners who intend to use their land for appropriate uses in rural zoned areas. The lenders we are dealing with are offering make sense underwriting. Naturally full doc and solid credit. This is very exciting news!

Terms and rates vary by credit risk, eligibility, location, and property type/use. Very competitive with residential rates. The minimum 15% down is great considering NO Mortgage Insurance is required.

Unlike USDA loans--also popular in our area--there is no ceiling on income or limits to business use as long as it's a legal zoned use for the land. It's very much a case by case underwriting decision.

Pass it on!

susan templeton mortgage planner www.loannetter.com