About Josephine County, OR

Many of my friends and Realtor colleagues have asked why I left the big box name real estate franchise and started my own independent brokerage in the middle of a sagging economy. It's a great question that is certainly worth answering. And here it is... FEAR!

In 2005, I experienced my best year in real estate, selling $15 Million dollars, in a somewhat obscure little Pacific Northwest mountain town in Grants Pass, Oregon. I had a fleeting thought of starting my own real estate brokerage then, but I was gripped by the fearful notion of leaving a fine-oiled machine for the extreme risky business of creating something new and independent. Fast forward to 2007.

I started seeing MAJOR big box name real estate franchises closing their doors, and/or downsizing all over the west coast, with little to no notice given to their agents. I started analyzing where my business was coming from, and realized that the majority of my success could be attributed to my Internet marketing, personal branding and referrals. I quickly realized that very little of my professional success was a result of being associated with a big box name real estate franchise.

As the economic tremors continued to unveil in 2008, I started to see my friends, relatives, clients and colleagues being gripped by FEAR, and in some cases, paralyzed by it. I started to think about how to prepare for the "big one" (those of you who have ever lived in earthquake country can relate to this). I realized that if this economic crisis was going to continue, I needed to be in a financial position to weather the biggest economic earthquake our country has ever felt since the Great Depression.

Enter Warren Buffett. I listened to a statement Warren Buffett made; "When people are fearful, be greedy. And, when people are greedy, be fearful." His few short words had a profound effect on my thinking. I paid little attention to the greed part (except for pondering how the big box real estate franchises were increasing their fees in a downward spiraling economy. Hhhhmmmm. Perhaps Mr. Buffett was preaching directly to the real estate franchise choir regarding their greed). What did catch my immediate attention was the word FEAR. After reflecting on the havoc this little word had reaped in my own life, I decided to battle against it head on. I could choose to let FEAR paralyze me or MOTIVATE me. In light of the current economic crisis, I had a major decision to make.

Having learned what motivates me, I could no longer, in good conscience, continue to pay enormous franchise fees for services that were over-promised and under-delivered. Nor could I continue to afford to pay a hefty price for my personal happiness, sanity, well-being, and joy (or lack thereof). The answer was clear, I had to go. As painful as it was to leave my real estate colleagues and friends at the big box name real estate franchise, I have to say, not a day has gone by since, where I have felt a single ounce of regret in making the decision to leave.

At Real Estate Cafe, I am surrounded by positive, upbeat, out-of-the-box thinking professionals, where the quality of life does not depend on how many real estate plaques you have on the wall, or where your name falls in the sales rankings. These things are not what define us. What does matter is the depth and scope of our ability to challenge each other to be the best we can be in a business that is quite possibly becoming extinct before our very eyes. We must stay relevant, and to do so, we must not think like everyone else. We must ask new questions, and we must seek new answers. And where there are no answers, we must be willing to take risks and pave a new path to create new realities. The worst that could happen is we could fail. But, what is so bad about failing? Some of our most exceptional inventors and Presidents failed several times before realizing their greatest potential.

Click Here for more information about Melinda Peterson and Real Estate Cafe

Disclaimer: The comments above were thoughtfully made in light of the fact that some of my closest and most respected real estate colleagues continue to work for big box name real estate franchises and are continuing to thrive and be successful in that environment. Kudos to you. "Should I Go Now" is not for everyone :)

Here are the latest Grants Pass, Oregon real estate stats for August 2009.

1120 - Active Residential Listings

95 - Homes Sold

46 - Listings Pending

122 - Average Days on Market

$210,405. - Average Sold Price

Stats provided courtesy of Real Estate Cafe. Source of information is the Southern Oregon MLS - Monthly NAR Statistical Report. Information herein has not been verified and is not guaranteed.

Click Here for more information regarding Grants Pass Southern Oregon Real Estate

FORECLOSURES AND SHORT SALES in Grants Pass Oregon

Many Oregonians who are experiencing financial difficulty are fearful of their situations and do not realize that there are very positive steps that can be taken to avoid foreclosure.

Let's pursue a dignified solution to your financial crisis through current lender loan modification, loan refinancing (short or long-term) or a short sale ( a lender-approved sale at less than your outstanding loan balance.)

Over 85% of the clients served by CDPE real estate professionals avoid foreclosure. The question and answer section below shows some of the reasons that one must avoid foreclosure at all costs. FAQ's are answered by the Distressed Property Institute, LLC.*

Question - How soon after losing a home to foreclosure or short sale can I be eligible for a Fannie Mae loan?

Answer - A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Question - How soon after I lose an investment property to foreclosure or short sale can I be eligible for a Fannie Mae loan?

Answer - An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Question - How does a foreclosure or short sale affect my loan rates on a future mortgage?

Answer - On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" this will adversely affect future rates. There is no similar declaration or question regarding a short sale.

Question - How does a foreclosure or short sale affect my credit score?

Answer - On a foreclosure, your credit score may be lowered anywhere from 250 to over 300 points. Typically this will affect your score for over 3 years. On a successful short sale, only late payments on a mortgage will show and after sale, mortgage will be reported as paid or negotiated. This will lower your score as little as 50 points if all other payments are being made. A short sale's affect can be as brief as 12 to 18 months.

Question - How does a foreclosure or short sale affect my credit history?

Answer - A foreclosure will remain as a public record on a person's credit history for 10 years or more. A short sale is not reported on a credit history. There is no specific reporting item for ‘short sale.' The loan is typically reported ‘paid in full, settled.'

Question - Will a foreclosure or short sale affect my security clearance?

Answer - A foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated. A short sale on its own does not challenge most security clearances.

Question - How does a foreclosure or short sale affect my current employment?

Answer - In the case of foreclosure, employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is grounds for immediate reassignment or termination. A short sale is not reported on a credit report and is therefore is not a challenge to employment.

Question - How does a foreclosure or short sale affect my future employment?

Answer - In the case of foreclosure, many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. A short sale is not reported on a credit report and is therefore is not a challenge to employment.

Question - Does a foreclosure or short sale affect a deficiency judgment against me?

Answer - In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment. Also in a foreclosure, the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment. In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner. In a properly managed short sale, the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.

Question - If my mortgage company loses money on my foreclosure or short sale and my debt is forgiven, will I have to pay income tax on this forgiven amount? I know that in the past any debt forgiven has always been considered to be taxable as though it were income.

Answer - The Mortgage Forgiveness Debt Relief Act of 2007 was originally introduced as HR 3648 and was passed into law on December 20^th 2007 when it was signed by the President. The Bill received an overwhelming support in the House and was seen by many as a major step in the right direction. Prior to the passage of this law, for any debt that was forgiven in a foreclosure or a short sale the homeowner would receive a 1099 and would have to report this forgiven (or cancelled) debt as income. This still holds true for those individuals who do not qualify for the exceptions of this act. From January 1, 2007 to January 1, 2010 (now extended to January 1, 2012), this Act eliminates the phantom tax on debt cancellation in mortgage discharge.

Alex Chafren, founder of the Distressed Property Institute, believes that homeowners surrounded by a strong CDPE real estate agent team including legal and financial referrals have the greatest chance of avoiding foreclosure and at minimal financial investment to the homeowner.

After completing the schooling with the Distressed Property Institute I came away with a different perspective toward my profession.

Since there are so many fine people in so much financial trouble right now, I feel that helping these people needs to be our top priority.

A great number of people out there are either so embarrassed or ashamed of their situation that they are just "walking away" and oftentimes without even knowing their options.

Sometimes a financial crisis just hit us out of nowhere and we don't have the time to step back and look at the entire situation.

Kind of like the old saying, "When you are up to your waist in alligators, it's hard to remember that your initial objective was to drain the swamp."

IS THE ALLIGATOR AT YOUR DOOR?

If you are presently having trouble making your mortgage payments or you have a financial situation that will soon affect your ability to keep current, we need to talk!

Let's discuss your situation and explore your options. Our first hope is to find a way to keep you in your home. No charge, just spread the word.

Remember this: Foreclosure is not an option! Rather it is the result of having no remaining options.

If we cannot see any other way for you to stay in your home, then we need to act quickly and effectively. I will handle the negotiating with your lender and will work with them to settle for less than you owe and arrange to help them dispose of the property and pay the commissions as well.

Keep in mind that lenders don't want houses. They appreciate the efficiency that a CDPE broker brings to the table.

Sloppily handled paperwork from real estate brokers or wannabe purchasers and speculators account for delays that neither you nor your lender can afford.

We handle all documentation quickly and efficiently. We are experts at handling not only the marketing of your home, and because of the professionalism that we bring to the table, lenders will oftentimes make much greater concessions to you the homeowner than they otherwise would.

What do you have to lose? Everything! Time is running out!

Let's get started, call me now,

Gary

　

Direct: 541-956-5565

Cell: 541-441-4410

Toll Free: 1-866-506-5050

Website: www.glswansonhomes.com

　*Gary Swanson and RE/MAX Ideal Brokers, Inc. assume no responsibility nor guarantee the accuracy of these answers. We are not engaged in the practice of law nor do we give legal advice.

One More Reason To Move To Grants Pass, Oregon:

A little over an hour from Grants Pass reaches the fringe of the Klamath National Forest.

We drove on a series of gravel mountain roads until we were stopped by huge washed-out ravine that pronounced the road dead.

From there a trail leads up the mountain in a series of switchbacks that makes the going a lot more manageable.

Our path wound through the magnificent forests on trails made silent by the pine needles. Not silent enough however for the ever present matre' des of the forests; the Jays. They and the squirrels made certain we needed no further introduction on our trip through their gorgeous home.

Our goal was easily reached as suddenly a beautiful mountain lake appeared before us. A scene reminiscent of Jenny Lake in the Grand Tetons only on a much smaller scale. This was Tannen Lake.

Another mile up and over the next ridge led us to East Tannen Lake, which is smaller but said to be deeper. The clear green waters reflected the glorious autumn color and myriads of orange butterflies flitted playfully along the waters' edge.

With deteriorating logs around the lake, the parts submerged are perfectly preserved; I lifted out a sunken piece of rotting log I was standing on and it was as strong and resilient as if it were cut from a green tree.

You know the one thing missing? No mosquitoes! Not one. How utterly amazing for an 85 degree day at a pristine lake and no unpleasantness at all.

Leaving the second lade, we completed a circuitous route around the other side of the mountain and eventually connected with the remnants of the other part of the road that led back to the washout where we started, and finally spotted our vehicle from the other side of the gully.

The whole trip without the sound of a vehicle and not even a contrail to mar the clear blue sky.

Why wait, send your referrals now! Thank you.

Check out my website at www.glswansonhomes.com and thanks for looking at this blog!

The Weasel Clause is like a slippery snake finding its way into the most obscure part of your real estate contract. Like poisonous venom, the Weasel Clause is meant to take a bite out of you, in the event that someone doesn't like the way the deal is going and wants out. The Weasel Clause can be a slippery way of escape out of a contract. Usually disguised and stuffed in a sentence or paragraph of fluffy verbiage (where it is barely noticed), the Weasel Clause is ready to kill the deal in one bite!

Here are two classic examples of the Weasel Clause:

1. This offer is subject to Buyer obtaining financing with a lender of Buyer's choice, at terms and conditions acceptable to Buyer. What terms & conditions are going to be acceptable to the Buyer? If they are not defined upfront, they are left up to interpretation. And what if the Buyer doesn't like the terms and conditions of their loan on the day of closing? You guessed it, they have a right to back out.

2. This offer is subject to Buyer performing a walk-through of the home prior to closing. What if they aren't happy with the walk-through on the day of closing? You got it, they can walk away from the deal. We may all agree that a walk-through is important. However, it may be best to make the walk-through a "courtesy" of sale, and not a "contingency" of sale.

Don't be fooled by the Weasel Clause, it's there for a purpose. Even though the other agent says his/her client has pure intentions... yada, yada, yada... we all know that people typically go into protect and defend mode when something goes wrong. Make sure you protect and defend your client in the negotiation stage, so the Weasel Clause doesn't take a bite out of you!

This information is provided courtesy of Melinda Peterson ~ Real Estate Cafe