Real Estate Financing...

If it wasn't for a lack of REM sleep and an inspired addiction to this very forum, I might never have had the opportunity to jot down all the thoughts going on in my head I wanted to share.  Over a month ago I sat in this very chair, staring at this very screen, and I started to write about one of the more inspiring individuals I've ever met in my life.  Then, it happened, computer freeze and POOF....it was gone.  I hadn't the heart to pour out my heart about that guy again til now.

My very first year in this business, 6 months into it in fact, I'd started to call former mortgage applicants of individuals who no longer worked for my particular firm.  I realized quite early that the turn-over rate in this industry was akin to the restaurant industry I had come from prior, and that was one way I could generate business.  Having no family in the area, no friends at the time, no experience, and no leads source....this was my way to earn business and make a living.  Ironically, my first year's earnings were almost entirely achieved by this very method.  Some of those calls were brutal, some were futile, others turned out to be fuel for the fire of my thrill for the hunt.  One in particular though, stood out the most.  That was the call I made one late afternoon to a 60 year old gentlemen from Abbottstown, Pennsylvania.  I'll refer to him as Mr. Phil.

Mr. Phil was a hard man to get a hold of, I had tried for weeks prior before actually reaching him.  He drove truck & a bus for a living...so his time spent at home was minimal.  When I finally got him on the horn, I was pleasantly surprised that he was very interested in what I could do for him, Mr. Phil wanted to refinance!  So there I was in my astute glory jotting down the privy info I needed to put together a proper loan package to see if I could help.  As the conversation flowed, I began to get to know why Mr. Phil so needed to get done what I had called for in the first place.

One year prior to our initial conversation, Mr. Phil and his eldest son had built their home themselves...from scratch.  Shortly after the home was built, tragedy struck as the house caught on fire.  Mr. Phil & his wife escaped, along with their eldest son, but somebody hadn't....the family dog.  The eldest son rushed to try to rescue the dog from the flames and as he was doing so, the house crumbled to the ground....killing the son and the dog.  A few months passed and Mr. Phil decided to do everything he could to rebuild the house. And that is exactly what he did.  Two weeks after his home was once again erected, Mr. Phil's wife of 35 years fell down the stairs and broke her neck, killing her instantly.

At this point, his heart wrenching account of those tragic life events had me in great angst.  He went on to say that the reason he needed to do something so bad is that both his late wife and son worked, bringing income into the home to help take care of the expenses.  Neither had life insurance.  Mr. Phil took on an additional job to try to make ends meet, yet the bills were too many.  His credit, his financial where with all....started taking a severe plunge.

The transaction was to date, the most emotionally grueling one I've dealt with.  Mr. Phil was understanding and quite frankly kept me relaxed and upbeat....though I was so very much consumed of making sure the transaction panned out.  He would often tell me not to worry, things would work out.  I thought he was nuts.  If only he knew?  In hindsight, he did.  He knew more than I ever could know and it had nothing to do with knowledge as I perceive it.  Without going into the specifics of why it was so hard to get this refinance done for him, we did get it done.  The inspiration came after.

At the closing, I went to Mr. Phil's house.  He gave me the tour and you could see how proud he was of his property, of his home.  He also showed me pictures of his fallen family, & remnants he had kept of the tragic fire.  I didn't know how to react, yet I didn't have too.  Mr. Phil was so upbeat, such a man of faith and honor...that I felt bad for feeling bad for him.  He never looked back with regret, only forward with fond memories.  He was so strong, so full of life & vigor, he to this day amazes me.  I referred to him then, as I do now, A Psychological & Spiritual Warrior. 

Mr. Phil once served our country as a United States Marine.  He's alive and well and still living in his home in Abbottstown, Pennsylvania.  Today, on Memorial Day, I thought of him...he is the most unlikely of my heroes.

  So this is number 100, the century mark for a post-happy person like yours truly who is blogging his little heart away?  Excellent!  I look back and I've come a long way.  I look forward and know that I have a long way to go.  Evolution is such an intriguing reality.  I wanted to make this one special, then I figured they all should be special....Right?  So, I wanted to talk about POO.  A little bit about POO....

POO is important but you really didn't really think I was referring to anything other than Pride Of Ownership in my acronym did ya?  I was thinking about this as I took a meander down the street today.  You see, it is that time of the year.  There are several homes along my street up for sale and it made me think of the small things, those little quirks I see as important if you are going to be the owner of a home...let alone want somebody else to buy it for the price you want.

I'm on the financing end so this comes from a guy who really has no concrete expertise on how to drive home the sale of a property.  Sure, I can guide and hold your hand from the financing end...but that is really a different cup of tea.  The only thing the financing end typically cares about regarding the home itself is that it appraises and is structurally sound....AKA, Have a Roof....Have Siding....etc, etc.  After all, the financing side wants to make sure the collateral they are lending against is worth what they are willing to lend against it in a typical market.  Yet, as I was walking down the street in my quaint little neighborhood, I started to realize I had very real opinions on the houses that had signs in their yards.  I had very real opinions on what I thought they could do better to drive home the sale.  I had very real thoughts on why I would buy or not buy their home. 

As a homeowner, being a neighbor and having a neighbor is oft-times very important.  Pride of Ownership is key.  I want to be surrounded by individuals and families who take pride & care of the roof they live under.  I also want to be that very neighbor surrounding them. 

My little neighborhood here on the east side of Allentown, Pa is pretty nice overall.  That said, I don't mean to sound like the Neighborhood Nazi but I found some things that I might look into if I was my fellow homeowners.  Some of the houses are nicer than mine, I'm working on that.  Yet, I saw a lawn that needs to be mowed, a landscape that could use a Green Thumb, and a few other cosmetic injustices that Bob Villa would have a field day with....on the very homes that are for sale.  And they weren't FSBO mind you.  Pride of Ownership is the mindset that your house is a home.  That its appearance and overall integrity reach a standard fit to sell it for good coin on any market, yet more importantly feel comfortable and safe living in 360 days a year.  It is an extension of yourself, of your life to an extent.  Stepping down from my SoapBox, I have a lot to do myself as I meander around my own home.  I have Pride, I have Ownership....it's never too late or early to put the whole thing together.

  I know, the initial reaction will be by most, that many think they are a leader.  They are the  Proverbial Chiefs and all the others are simply the so-called Indians.  Ego gets in the way of the cold hard facts a lot of times.  I'd include this as one of them.

Let me clue you in on a little something here as I stand on my Cyber-Pedestal.  You aren't in control!  Nor am I!!  Don't get me wrong, there is a lot of things we are in control of, yet our Ego allows us to embellish what our role really is.  I'm not a religious man by nature, yet I do believe in two things in particular.  Number one, There Is A Higher Power.  Number Two, I'm Not It...I'm pretty sure you fit the same bill.

The inspiration for this post didn't come along because I needed a quick 200 points, or even that I wanted to garner the attention of the Active-Rain Higher-Ups.  In this cynic mood I currently am involved in, I hope neither of which happens.  The inspiration came from the reality in which I live, or perceive it to be at least.  That reality says to me, "Jason Michael Sardi, know your role and transcend it." You see, to me, some of us are brokers, bankers, Realtors, buyers, sellers, pawns, paupers, I hope you get my drift.  We have our role and rely on others to live up to theirs.  Life is about variables, control what you can, the other stuff tends to be obstacles you just have to deal with.            

Real Estate Transactions, like Life itself, have many variables, many professionals, many things associated with the eventual outcome.  You can do everything in the world and this business right and that loan still may not close.  Know your role my friend.  I strive to be a leader, yet I know I will follow along the way.  I am and will be part of the equation, yet not the be all/end all of the solution.  I damn sure will continue to strive to be a part of, if not the whole solution, but I will call a spade a spade.  I am not the solution, no matter how hard I try. 

My point in all this is simply...."Be humble in your limitations, aggressive in your expectations, and Damn Real in your Presentations.  No matter how good you are, strive for better.  You'll never be the best."  I am not a leader, I am not a follower, at my best...I'm a bit of both.

Talking to yourself isn't nearly as bad as people think.  At least that is my own humble opinion.  In fact, you may learn more about yourself than you would ever care to know.  I found about the concept of interviewing yourself at a very early age, from a so-called Rock-God who wasn't and isn't looked at as the greatest role model on this somewhat green earth we call home.  I liked the concept, loved the idea, and always thought it was enlightment in the making.  After-all, the questions posed in a one on one self interview by yourself are limitless, and probe deeper than the Katie Couric's & Bill O'Reiley's ever could......as long as you are true.

Every single day of my working life I interview individuals to gather whether or not myself and my firm can help them in bettering their dreams of homeownership or realizations of that very home they actually own.  I ask the questions, I listen to the answers, I ask the probing & open-ended questions to find out if I can help...or at least guide them in the right direction.  Yet, I never did it as good as when I probed myself first, knew more about me than I imagined I may know.  Self-realization=A Better Understanding of Anybody's Particular Situation.

From  to , my client list has been one that lends itself to dealing with any and all financial situations.  Personally, I've been on both ends and everywhere in between.  I like the feeling of dealing with all ends if you know what I mean.

Interviewing myself on a somewhat regular basis allows me to know & more importantly realize what I'm about.  You know, the imperfections, malfunctions, human errors, waves of thoughts flowing through my thick & stubborn skull.  That very exercise reminds me that I am human, above nothing, beneath the same.  It allows me to identify, clarify & rectify my association with anyone I come in contact with. To know thyself is scary, but it adds credibility when trying to garner an understanding of others & what they have & are going through.  The Self Interview, if practiced regularly, allows me to harness my knowledge in a more open way.  And as the famous unknown once said, "If your mind's not open, shut your mouth too."

Do yourself a favor.  The next time you take a long walk home, or are sitting alone with nothing but restless thoughts in mind, start asking yourself questions.  Ask what nobody else would think of asking.  Answer as only you could.  Find out more about yourself to better serve the 'Others' you deal with.

This particular post was inspired in large part to Danny Smith's latest blog, which was inspired by Colleen Kulikowski original post of What Makes A House A Home?  So, I guess this is a pretty inspired post indeed.  I was thinking about this very thing on my way to work this morning.  Quite frankly, it got me feeling very nostalgic.

As youngster growing up in the small town of Clarion, Pa.....my recollections of my youth are abundant.  But one of my fondest memories is stepping foot in my Grandmother's home.  This was back in the day when I still had my 'Sweet Tooth' in tact and she always had homemade cookies waiting for little old me.  But to this very day, the thing I loved the most about walking into that home was the scent of what we began to refer to as 'Grandma's Chicken'.

It is that very scent that made that house seem more than just a house, but a home.  One that always felt safe, secure, and full of joy.  I remember sitting in my little rocking chair rocking my little soul away as I soaked up the scents of her homemade chicken floating in the air.   When she passed away, I was too young to really feel the emotional impact of it.  But her memory lives on, years later her recipe was found and now it is my own mother who makes Grandma's Chicken.

Every couple of times a year when I visit my parents in Raleigh, NC...I can be sure when I walk into my parent's home, the scent of Grandma's Chicken will be lurking in the air.  In addition to the loving & welcoming arms of my father and mother, it is this scent that makes that house in Raleigh, a home to me.  It is that scent which transcends four walls, a floor, & a roof into a palace of heart churning warmth.  It is the simple sense of smell that makes the simple walls around me feel like a sanctuary of life's completeness.  To me, that very scent makes much more of an impact than a growling stomach, it's a intangible highway back to an age of innocence. 

Somewhere out there my late grandmother is cooking a Feast for the Gods.

Here's a link to the activity on this subject... What Makes A House A Home?

  I read an interesting article in The Pennsylvania Mortgage Press in regards to homeowners and their knowledge, or lack thereof, of what type of mortgage they actually have.  Apparently, Bankrate Inc. released a poll over at Bankrate.com which found more than three in 10 homeowners (around 34%) don't know what type of mortgage they own.  This didn't totally shock me because I talk to people every day and their knowledge of mortgages (especially theirs) tends to run as thin as Telly Savalas's hairline.  >>>>>  28% of those surveyed worry about how they will afford their payments.  The national poll strikes a cord and lends to the fact that there is a good percentage of homeowners who have angst & confusion in regards to their mortgage.

A very disturbing finding in my eyes about this survey is that 34% of homeowners with adjustable rate mortgages (ARMS) don't know what they will do when their loan readjusts.  Depending upon the amount they owe on their mortgage, some of these very individuals may be staring into the eyes of a payment hundreds of dollars more than their current payment.

Here is a brief overview of other key findings:

HOMEOWNERS:

- 36% who now have an ARM plan to refinance to a fixed-rate loan when their ARM adjusts.

- 28% of those surveyed worry either regularly or sometimes about how they will afford their payments next year.

RENTERS:

- 40% consider affordability the biggest obstacle in buying a house.

- Just under 12% are concerned their credit rating is not high enough to purchase a home.

- 38% would avoid taking out an ARM when they are ready to purchase a home.

Bottom line in my book, and that is currently the one I'm reading, we as Mortgage Professionals need to take added steps to educate clients about the process soup to nuts.  I also think it is vital to educate in our schools our youth (Gosh I'm getting old:-)  about credit, home ownership, money as it pertains to the real world in general.

I'm not a Realtor.  I'm not a Real Estate Agent.  I'm not apart of NAR.  I don't represent any of the entities involved in the hoopla we recognize as news, at least that 60 minutes piece brought upon us or us upon them.  In fact, I'm quite tired of the fertilizer spread across the landscape of the industry I work in.

The one thing that still gets me about the media...is we buy into it.  Which means, they are doing their job!  This very post buys into trying to defend an industry that quite frankly, isn't an easy way to make a living.  If Leslie wants to question the fees associated with our industry, I am tired of the feeling that we should even have to defend them.  Tell you what Leslie & the world...I love competition.  Have at it.  I'll sit back and to the best of my ability...do my job.

My job is to originate leads, close loans, and along the way try to help people.  Making money and helping people, all at the same time, a great job if you can get it done.  As far as my fees, they are negotiable, so is my time.

I have dealt with similar entities on the lending side of things.  I've dealt with Discount Mortgage Brokers (Is that a rebate I smell?), Upfront Mortgage Brokers (Should there be any other kind), and advertising promises of fixed rates as low as 1%.  All three have one thing in common, there are probably good people that are a part of each equation...doing what they do to make a buck, make a living.  And a lot of them believe what they are saying, right or wrong.  I fault nobody for that.  Yet, Ladies & Gents...our living goes above & beyond defending what we make....you want to defend something, defend what you do.  Defend how you do it.  Do your job!

In my own humble opinion, the best commentary I've read on the very article that has stirred more controversy than O.J. not fitting into the black gloves is by Morgan Brown.  My favorite dialogue Morgan mentions is the following: "Realtor's shouldn't get so defensive about their 3% commission.  They shouldn't defend it like a birth rite - they should just go out and provide knock-your-socks-off service that doesn't make any one question how much they charge.  Do you think the people at Mercedes get grilled over price?  Do you think Nordstrom gets grilled?  I don't think so.  And you never hear them defending their prices.  You just hear them talk about the value they deliver.  Realtors should take a clue from them - stop defending - start wowing."

Let's do out job folks! While I admire, advocate, & admit there is skewed information passed onto the public as the truth...Actions Speak Louder Than The Turds Of Fertilizer I hear and see on Network T.V.  I'm a cynic, a critic, a hypocrite, and I am damn sure there is a used car salesman out there who feels he/she has got a bad rap too.  There is only one way in my book to change bad raps, do your job!  If you do it right, honest, ethically, professionally, & humanely...the rest tends to take care of itself.

One more thing, never intentionally mislead anybody.  We are all going to die, do so with honor.

I don't mind humility.  It is the one trait I feel most of us lack the most.  I'm not talking about getting down on yourself, I'm speaking of reaching out and simply saying, "I live, help me learn."  It is one of the things this forum allows us to do...if we let it, allow it, enforce it, & embrace it.

Before I go any further, let me say I've lived in the state of Pennsylvania for 28 out of the 30 years I've lived here on planet earth.  I love the Steelers, have a soft spot for the Pittsburgh Pirates, and am not a huge fan of Philly fans, unless we are talking Professional Wrestling.  As far as the Eagles, Fliers, Sixers, & Phillies Fans...best of luck chaps, but I'll be rooting for the freaking Giants, Rangers, Knicks, &  Yankees if I have too. 

I love Bonfires, Keg Parties, Autumn, & Shoveling.  That's Pa in my book...Beer, Fire, Fall, & Blue Collar Work.  I live in Allentown now, so I don't mean to offend the Philly crowd....but I'm a Pittsburgh type of guy.  I come from a small town 2 hours North called Clarion, you may have heard of it, and after being here (In Allentown) for a large amount of time...I realize Billy Joel wasn't so off with the song.  Look it up, good tune.  Or, just click on the link provided.  But I do like it here in Pa, and am growing a soft spot for Philly fans along the way.  I'm growing Local.  Which leads me to...>>>>>>>>>>>>>>>

In my own marketing efforts, I would love to learn how I can better utilize the aspect of Localism on this forum.  Herein lies my cry for help.....so Betty Ford me on the Marketing Dilemma.  My dilemma is I love to learn, which is so opposite of how I was when I was attending and graduating high school & college.  I love to learn not only how professionals go about marketing to a local audience, but how a local audience responds to the marketing thrown at them. 

Let this post, for better or worse, be free for all to read & comment if desired.  Or, just email yours truly to teach me something I've always yearned to learn......The Power of Knowledge.

Bethlehem is a city in Lehigh and Northampton Counties in the Lehigh Valley region of eastern Pennsylvania, in the United States. As of the 2000 census, the city had a total population of 71,329, making it the eighth largest municipality in Pennsylvania.

Bethlehem lies in the center of the Lehigh Valley, a 731-square-mile area that is home to more than 650,000 people. The Lehigh Valley region embraces a trio of cities (Bethlehem, Allentown and Easton) within two counties (Lehigh and Northampton), making it Pennsylvania's third-largest metropolitan area. Smaller than Allentown but larger than Easton, Bethlehem is the Lehigh Valley's second most populous city.

There are three general sections of the city, North Bethlehem, South Bethlehem and West Bethlehem. Each of these sections blossomed at different times in the city's development and each contains areas recognized under the National Register of Historic Places. Bethlehem's international sister cities are Schwäbisch Gmünd, Germany, Tondabayashi, Japan, and Murska Sobota, Slovenia.

In July 2006, Money magazine included Bethlehem as one of its "Top 100 Places to Live."^[

Courtesy of Wikipedia