Paul McFadden Mortgage Loan Officer Bellevue Washington Home Loans

Good morning! I hope you're well! I was reading in The Seattle Times today about how apartment construction is booming in the Seattle area.

According to Dupre and Scott there are over 20,000 units in the planning stage here in the greater Seattle area. It is a record number that are planned to be built. Everywhere you go in Seattle there are construction cranes putting up apartment towers. It's pretty amazing.

What has led to this unprecedented boom? I think it's a couple of things. One, the apartments are being built in densely urban areas where a lot of young people live and work. With Amazon.com and other companies thriving, there is a need for their younger workers to live close by. Rents are fairly high in these newer buildings but the renter is typically a well paid and educated person.

Two, I think that since the renters of these apartments are young they are also probably unattached. It appears they're not motivated to buy a place for themselves just yet. I'm sure there are also a lot of renters who had the misfortune of losing their home to foreclosure, etc. within the last few years. As most of you are aware these people will need to sit on the sidelines for a few years until they can qualify to buy again.

What I'm wondering is what happens a couple of years hence when all these renters decide it's time to buy. Obviously that will be great news for those of us in the real estate business. And I expect this to come true. Things cycle through as they say. Of course that may mean that a lot of these new apartment towers will be pretty empty. In other words the landlords may run into some trouble unless they can foresee this and start converting their units to condo's.

What are you seeing in your area? I'm curious. Obviously any real estate person who chose to hang their hat in the apartment realm may be killing it. Have a great day!

Hi there: I hope you're well. We're still looking for sun here. Oh well!

I was reading this morning about the proposed principal reduction idea being floated. In a nutshell, it would allow homeowners to have their principal balances reduced to at or closer to what their home is now worth. Ironically the two biggest naysayers are Fannie Mae and Freddy Mac.

The opinions shared in the article were in favor and felt that the two big entities were short-sighted. Fannie Mae and Freddy Mac believe they need to protect their investor's outlay of $150 billion.

What are my thoughts? I think and agree with the pundits who argue the reverse is more unpalatable. That is that people are walking away from their mortgages often because their balance due as compared to value is so out of whack. The argument is if principal balances were reset people would be more motivated to stay in their homes. The other part is it would stop all the foreclosures and short sales going on. It might allow the housing market to improve faster for this reason.

In a way, it's a double-edged sword. The lender would be asked to rewrite down the mortgage balance; something they're probably lukewarm about doing. On the other hand, we all know how expensive it is for the banks to foreclose (the cost has been pegged at $50,000+/home) or how much they already lose in a short sale.

What's most at issue here is the American psyche. I've never been one to argue we shouldn't be responsible. Perhaps here we need to be flexible about this principal reduction idea. If it gives the American consumer confidence (something very few of us have had in abundance since 2008 if not before) then we may be well on our way to recovery. As it is now, I still think we have a ways to go; especcially since the real estate market is such a key indicator.

What are your thoughts? Good, bad, indifferent? I'm curious. Have a great day!

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Good morning! I hope you're well! It occured to me that I hadn't written a blog in a while.

I'm still Active here. Perhaps I couldn't think of anything intelligent to write about! That being said here are my thoughts for 2012.

I think things are slowly improving. Yesterday I was at a clock hour class for real estate agents about becoming an REO broker. The 12 agents there were learning about the ins and outs of REO's. A couple had a good game plan to go after the REO market and I think they'll be successful if they stick with it.

I also have had some good contacts with builders recently. Here at The Legacy Group we work with quite a few builders. This is primarily because their banks don't want to any more. The Seattle area was never hit as hard as other parts of the country but we weren't immune. REO's, short sales and foreclosures still make up 40-50% of the market here depending on the area. What this says is there is opportunity. The builders and real estate agents who realize this are starting to do well.

Will it be an easy year? The answer is things are still challenging. Loan originations are projected to be below the $1.2 trillion of last year due to refinancing running its course. But, again, there are plenty of people doing well in a tough market.

There you have it! Hopefully I can be a little more regular on the blog front this year. Have a great day!

Hi all: On the eve of Thanksgiving I wish that all of you have a warm, safe and loving place to go tomorrow and for the Holidays! I was reminded today about how goodness is all around us. We just need to notice!

What prompted this thought? I was driving by the Safeway today and saw that a group of attendants were offering gas for single moms. How cool is that? This was followed up by a Facebook post by a friend of mine where she invited all displaced or single people who don't have a place to go tomorrow to her place for a cup of eggnog and good cheer.

I don't know about you but it continues to amaze me how many good people are doing great and selfless things in the community. And it's year round. They're ever mindful of helping those who are less fortunate. Myself? I've got my list for this time of year as well.

What are your intentions? And if you're one of the unfortunate ones, please allow a helping hand this time of year. Thanks for reading and continue reaching for the stars and offering a helping hand!

Good morning all! Happy Tuesday!

I saw that the government is planning on rolling out a new idea. It will be a refinance program for anyone who had a loan owned by Fannie Mae and Freddy Mac prior to 2009 regardless of loan-to-value. The stipulation is you must be current on your mortgage payments along with the rest of the necessary requirements such as credit and income.

First of all, I applaud them for continuing to try and find fixes for our economy and specifically the housing market. Most of the past programs (HAMP. HARP, etc.) have been marginally effective. That's why I'm not so sure the latest HARP will be so simple!

The bottom line is this. You can be way upside down on your loan but it might not be owned by either Fannie Mae or Freddy Mac. In fact, a lot of loans originated back in the day (from 2003-2007) weren't owned by Fannie Mae or Freddy Mac. In other words, the new HARP won't help.

The second variable will be if the different lenders will actually allow refinances regardless of loan-to-value. Yes, there have been plenty of loans done above 100% loan-to-value through programs such as Fannie Mae DU Refi. Plus. And this could be a boon for all of us loan officers as it adds another quiver to our basket. But, again, a new HARP program, although in theory a great idea, isn't that simple!

What will win out in the end? Time. It takes time to work through the ups and downs that were created the past several years. Eventually we'll see a healthy and normal market again. But until that time, don't expect miracles. Thanks for reading! If you have further questions or thoughts feel free to

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