Jason Sardi, Mortgage Banker

To write that we live in interesting times is probably one of the more vague and dull observations I've ever laid out in my thirty-two years on this earth. If you are looking around and have an IQ below 140, you may be downright confused and a tad bit pissed that there seems to be no full-fleged short-term cure to your ailments. If you are looking around and have an IQ above 140, what the heck are you doing reading my crap? You should be out there promoting your next book on Oprah, or at least waxing intellectual with the 'interestingly' appointed Dr. Phil.

Seriously, it isn't the best of times right now. At least for the majority (I believe) of folks here in the land some vow as the promised one, it's tough. Frankly, I've felt it too. My cat Baxter used to eat Liver & Onions and now has no choice but to settle for Spam & Garlic Salt. He still loves me though and that's a damn good thing. He's an adorable little whiner.

The root of some of our troubles seems to start and end with the almighty dollar. As a guy who has done a mortgage or two in his time, I figure it might not be a bad idea to curb some of this... in my own little way. Buying a house can be a blessing or a curse,,, it depends on who you talk to or who you are working with... maybe even a mixture of the two. Here's a bit of advice from me whether you own your abode or may want to buy a home down the road:

• Do not shop Interest Rate alone! This may sound hypocritical considering one of my 'selling points' is I can get better rates than Retail Operations out there. That simply means some of the big names you see advertised or recognize cost more than a guy like me because I'm wholesale baby! Yet, don't do business with me because I'm cheaper... at least don't make that the only reason. Do business with me because I'm better equipped to handle your transaction and more importantly, YOU. Trust rarely has a price... monetarily speaking.
• Big financial decisions, like owning a home, should be a plan and not an indulgence. If you got or get away with the latter, make it work by planning what the future can hold. You don't have to be smart or lucky, just be informed. I think they call that smucky...
• Any transaction's end result should make you feel and be more comfortable. Statistics aside, if you can accomplish that... then you've done something with your life.
• Ignore the Media. Well, not totally, but take what you see and hear in stride... as their ratings ironically depend on our own demise. Folks tune into train wrecks, whether we are off track or not.
• Watch your credit and your score. I'd advise not to work with somebody who doesn't understand credit. As it stands, your standings are as important as they have ever been. It can cost you money or save you money, that's credit.

And the most important piece of advice I can give is the benefits I may receive...

Win the Lottery and call me in the morning... posing as my rich uncle who cares...

In a world where good credit seems to be more and more vital, every tip and piece of knowledge you can muster can be huge to your financial health. I read the other day that only 8% of the entire wealth of the world is ever printed as physical cash. The rest seems to exist on a computer hard drive, in electronic bank accounts around the world. That leaves 92% of the wealth existing in some sort of credit. Without good credit, you don't have access to this wealth and it could hinder your ability to prosper and make finances one less worry in the life of you or your family. Unless you have cash hand over fist at your disposal, the chances of you needing credit loom rather large. If you do have cash hand over fist though, we should probably talk:)

Here's a few steps you can take to improve your credit and this can be done all by your lonesome:

• Pay off existing credit cards and lines of credit- Okay, this one is a discipline type of thingy. Unless they are absolute essentials (and no, a trip to Atlantic City is NOT an essential) ... don't spend a dime on anything other than paying down/off debt. It has been shown that credit cards with at least 90% of credit card debt paid may show an increase of 70 points on your score (assuming there are no additional negative items).
• Use Credit like you would use Dashi stock in Japanese Cooking, sparingly- Unless it's an emergency, keep those credit cards nice and snug in that dapper little wallet you got for Christmas last year. As your debt to available credit ratio improves, so will that very important credit score of yours. Of note, the score itself has become more and more important these days in lending. So, you want to make sure your FICO Score is as high as possible.
• If you are going to pay off an account, Do Not Close It - And I verified this one with our Credit Guy, it seems the scoring module works like this. Closed accounts with balances will throw off the debt to available credit ratio. When you close accounts, it generally lowers your score... at least initially.
• Repeal the temptation of applying for New Credit - The module tends to think that applying for new credit may mean you are becoming 'credit desperate' and your score can go down 10-20 points depending upon how many outstanding credit cards or loans you have. So while you are paying down your debt, apply for no other credit whatsoever.
• Ensure all positive accounts are reporting on all three credit bureaus - Review your credit report in full, making sure every loan (car, student, etc) and revolving line of credit (credit cards, store cards, etc) are reporting to all three bureaus. If you are paying those accounts on time, you will want to make sure all three bureaus are recognizing your stellar spending habits.
• While you are reviewing your credit report, watch for mistakes - Maybe your twin brother Pedro has a collection or late payment showing on your credit file? Maybe your cousin Eddie has a bankruptcy that has somehow found itself on your report? These kind of mistakes can be brutal, make sure they aren't showing up on your beloved resource for helping to achieve wealth.
• Apply for a Secured Credit Card - If you have no credit at all or all of your previous accounts have been closed, you'll need open credit on your file to maintain a credit score. Apply for a secured credit card and after six months, ask for an increase in the credit limit. Secured Credit Cards are usually cards where you give them cash up front and they then give you a credit card to borrow from it. Just make sure that card reports to all three bureaus.

These quick tips are some of the things that can help to improve your credit score. As a consumer, you probably already know that your credit score plays a significant role in your financial well being. As I've written before, it can get you dinner at the White House or Ramen Noodles in the poor house. Well, it may not get you Foie gras with the Commander in Chief, but it well help you avoid chowing on Spam with your Cousin Eddie.

Reflection:

To understand where we come from is, in part, to understand the the very way we started. Do you recall your first Real Estate Transaction?

I was working for the Federal Grill here in Allentown, a somewhat recently extinct semi-fine dining restaurant. While life there seemed to be that of a rock star, without much in the way of fame or fortune, I was unhappy because I hadn't a clue of what I was going to do for the rest of my life. My dreams of catch as catch wrestling had died because the passion withered and my contempt for the industry grew. I was lost and didn't know the next place life would take me, or where I may take life next.

A gal I worked with at the Federal Grill, I'll refer to her as Beth Forbes (I dare you to look her up on this forum)... moved on to the world of mortgages. Roughly two years after she made that transition, she entered the Federal Grill and I just had to ask the question, "Beth, are you hiring?" I remember, if I'm not mistaken, her answering... "Aggressively."

So began a young journey into a world I had no clue about at the time. I would meander into the office every chance I could to learn and try to drum up business. While I hated talking on the phone, that became my only way of generating enough action to quantify me being able to come in and have anybody pay attention to me or teach me a thing. I was willing to pay dues and while my parents are successful folks, I had always earned my keep and done things the hard way... because I thought it was the right way. They thought I was crazy; I knew I was just stubborn.

After many a phone call, I ran across a couple who were in debt out their ear-hairs and needed help bad. My call was timely in reaching them. I should mention that when I started in this biz, rates had become super low and the refi boom was on the verge of becoming an epidemic that would tease any gibroni who wanted to make a buck to be an 'expert' in this industry. I never understood that mentality, still don't.

Yet, these folks didn't qualify in any facet for those rates so heavily advertised on television & local newspapers back then. Young me, I heard what we could do for them and immediately retorted, "8.5% on a fixed rate? Why would they ever take that with rates so low?" My mentor at the time pointed out the astutely obvious, we are consolidating a lot of stuff and saving them $400.00 a month. "What does the interest rate matter if they are saving money along the way? Plus, they don't qualify for anything else!" I replied, "They will not take it, that interest rate is way too high."

Well, they took it and it had nothing to do with my sales technique. I didn't think they would want it, yet it was they who knew what was best for them, especially back then. I told them what was available and they never balked. I collected my net paycheck on that very small loan of $500.00 and quit my position at the Federal Grill and started full-time at First Choice Equity Group, Inc. Sardi grew a nut; Sardi realized that folks will always buy houses and need money. Young Sardi realized that what seemed a good deal for them to me ... wasn't necessarily shared by them and vice versa. Young Sardi realized that sales is a game of friendship and I hope I can provide what you need to be done to better your world.

As our world grows more complex (in perception only most of the time;-), I realize this isn't a game at all. Can I help or can't I; let's leave the rest aside. I called that couple again about six months ago and they are doing pretty well. They seem to be one of the better stories of all that is happening. They have eight years left on their mortgage and have no other debt at all.

We concentrated on the interest rate for so long, it makes me wonder if we ignored or dismissed the true value in Capitalistism... Savings. I know I did.

America... it's freaking Friday, well technically Saturday. None the less, grow some nuts and be the squirrel that eats away... and helps out in the every way. Feel good and not just because it is better than being hurt...

I'm of the firm belief that if you borrow money, you should pay it back. Sure, life circumstances occur and you may not be able to do so anytime soon... yet fair is fair. If I am given money from you, I should eventually pay it back to you. That is the right thing to do.

Yet, the loopholes are many. If I had to do it all over again... and I just might, I would passionately study law. I haven't been able to verify what I'm about to write (which is why I would make a bad attorney on paper), but have you heard of the following...

If a debt that you owe is too old, you are NOT required to pay it.

Before I delve into that, it's probably best to know how collection agencies work. I issue you a credit card from the International Bank of Jason Sardi which allows you to borrow up to $5,000.00 against it... assuming monthly payments are made on time. You are doing well and everything is wonderful and paying the IBJS just fine, but then you run into a financial funk. You begin to not pay anything to the IBJS and eventually the IBJS writes off the debt as uncollectible. After all, you can't squeeze blood from a turnip... or so they say. So, IBJS sells your debt as part of a bundled package to a collection agency for a very low price to get it off 'their' books and/or portfolio line. That collection agency, who bought your debt pretty darn cheap, hopes to collect high and reap mucho profits along the way.

Each state differs in their laws, yet if you have a debt that was written off (let's say 6 or 7 years ago) and there has been no activty on your credit report for the debt since then, you are probably relieved of that debt forever. Like a gallon of milk that you are buying from the store, it seems debts have an expiration date as well.

In Pennsylvania, it seems that four years is the magic number. I could arm you with some of the knowledge and information to rebuke that debt, but I'd rather suggest to you to negotiate a settlement... what is fair is fair. The International Bank of Jason Sardi issued you a credit line of $5,000.00 and you racked up $3,000 in expenses before you stopped paying. A collection agency paid IBJS $500.00 for the account/debt after IBJS deemed it 'a loss'. Tack onto that $3000.00 accrued interest, late fees, and any sort of greed-driven drivel they want; that account may show up with a $5,000.00 balance after all. The collection agency just shelled out $500.00 in lieu of possibly collecting $5,000.00! No way, Jose!! Negotiate yourself to financial freedom. Or at least freedom to exorcise those financial demons. Offer low, be prepared to raise the stakes a bit to come to an agreement. If you already own a home or plan on purchasing one, think about not wanting some jack-ass having any dibs whatsoever on your property.

There seems to be a Statute of Limitations on Debt, yet if you aren't a Credit Attorney or don't do your homework... loopholes reside on both sides.

The loophole to distinguish this 'consumer protection' measure is that those agencies keep your account active, which gives them a legal right to pursue the collections or render judgment against your current holdings.

Now, that written... homeowners or prospective homeowners should be aware of a few things here:

• any collection account showing on credit or title has to be paid in full (negotiate a settlement) prior to or at closing
• collections showing up on your credit can hurt your credit score and the lower your score, the more expensive your mortgage (interest rate, fees, etc) may be.
• active collection accounts could render a judgment against any property you may own. Now, most of them won't because it is too expensive or they are just looking for a scare tactic to collect money... but it could be done.

Always remember, almost everything involving debt is negotiable. They would rather have something than nothing. Communicate & Negotiate. You'll be one of the few that do it and reap the rewards for acting upon it.

Don't hide from those you owe money too, get in their face. Show them just how ugly ethical you can be.

Lastly, we are much more than all this 'Financial & Political' talk. Take it easy, relax, and have a good weekend. If you are in trouble, shoot me a message. I won't guarantee I will provide the answer or solution, but I will be a shoulder to your situation. Chaos creates character in us all.

It was about 5:48 PM when I got out of this evening's closing. I arrived at 4:00 PM. It's my second of the month and boy do I have some bar water cooler stories for anyone interested. Before I go further, I should mention that each respective client at each respective closing did their due diligence in making sure no question they had was left unanswered. Kudos to you both! On one hand we have a first time home buyer. On the other, was a first time Real Estate Investor. I'll get to that in a moment though...

I found out that tomorrow is Mental Health Day. I wasn't aware that I had a three day weekend. Yet, it makes one (me) think.

My mother has spent her entire life working with and teaching those who society deems as mentally challenged. As a youngster, I saw that she brought her work home with her and I saw her passion being unrewarded with financial gain. I saw her passion to help cause a heck of a lot of stress... passion sometimes goes unrewarded along the less than merry way.

From day one, I looked at a lot of those who weren't socially compatible mentally, as persons who were closer to a higher power than the rest of us. While their intellect failed socially, at least in our culture, their hearts performed miracles of humane notions. It wasn't that ignorance was bliss; it was and is their heart that our intellect would not allow us to understand.

Tough times, damn right! I propose a simple solution to lead us to the promised land, that of one which will make our lives a bit more comfortable.

I left that closing (or so I thought) at 5:48 PM this evening but before I did... the client gave a speech that stimulated both my mind and heart. Because of that, I left much after 5:48 PM;-) Sure, they were trying to wax intellectual in saying that they want to build a team for future reference... but I saw something different every time his eyes made contact with mine. All he really wanted was a sense of trust and stability. All they really wanted was to make sure folks they worked with were really on their side.

My mother has represented folks who weren't in tune with society as we know it for her entire life. Now I represent folks who are unsure of what it takes to buy or refinance a home. While it is not easy to take on the media in mid-drift, it makes little difference if we burn out or fade away. Both options are failure. I won't concede that just yet.

Tis life...