Sexy Sadie

Let us all have a moment of silence for the passing of the Maharishi Mahesh Yogi.

For those uninitiated, he was the "guru" of The Beatles in 1968. Because of their trip to India and their sojourn into transendental meditation, made popular and Westernized by the Maharishi, The Beatles had a time of R and R that was much needed. Also, because of the cleansing of their bodies and minds and the opening of the mind, they wrote prolifically during that period and released an almost unprecidented double album know as "The White Album". The album cover itself was shocking in its absolute stark whiteness, except for the embossed words "The Beatles" along with a serial number. The white cover was a reaction to the complete and total image overload of the previous album "Sgt Pepper's Lonely Hearts Club Band."

At the time of the recording, their producer, George Martin, tried to talk them into gleaning only the "best songs" and shelving the rest. But by then, the lads were feeling their oats and insisted upon the whole enchilada. When asked decades later about that decision, Ringo said, "I always thought it should have been released as two albums, The White Album and The Whiter Album." We love Ringo.

Which brings me to the topic of improving. Can you really have too much of a good thing. If a little is good, isn't more better? Maybe when it comes to the Beatles, but not when it comes to improving a home.

There is a movement in these days of foreclosures whereas the people who buy investment properties are having a field day. Especially if you are a handy person and like to fix things yourself. Now if you are slum lord and are just looking to flip a house or move in some unfortunate soul, then you can change the channel now. However, if you are a fixer-upper kind of person please try to restrain yourself. Here's why:

Say you find a bargain for $35,000. It is run down to the max but has good bones and a good foundation. You want to make this home a showplace; clean, neat and so sweet. New siding, new windows, new porch, refinished floors, updated plumbing and wiring, new kitchen, added bath, fresh drywall and insulation in the attic. Now you are the proud owner of a fabulous house. But, and this is a big but, the other homes in the neighborhood are only worth $80K. Ooops! All that work, time, money and pride of workmanship and you are stuck with a white elephant. Would you pay $125K to live in a $80K neighborhood? Doubt it.

The other scenario deals with the seller who is extremely house proud. They built the house themselves, sometimes even with their own hands. They have a gourmet kitchen with stainless steel appliances, wood floors, jacuzzis, custom woodwork, hand built cabinets (sweated over for months in their own woodworking shop) personalized touches everywhere. A year later, they realize that they need to retire to the sunny climes of Florida. They have put their blood, sweat and tears into the house and they know it is the finest home around. And they are right. And here's that big BUT again, a comparable stock home typical of the area goes for waaaayyyy less. But these homeowners are ssoooo proud that they can't imagine why someone wouldn't want to pay for all of their good taste.

So yes Virginia, you can overimprove. Which is not to say that you shouldn't do all of the above. Just remember that if you do, do it for your own enjoyment and not with the idea of raking in loads of mula when you sell.

Rule of thumb; white elephants don't turn into White Albums.

Fixing a Hole

The real estate world can be a cold and lonely place. Okay, not so lonely, but our fellow realtors can be cold.

Unfortunately, my latest deal with Dumpster has ended up there, in the dumpster. Our back-up offer was tossed away like so much waste paper. I found out by accident that the first offer had closed already. I hate having to tell people bad news. I try to mitigate it with something a little positive, in this case with the hopes of looking at something else to invest in. Hopefully, (there's another word you'll be seeing often), I can find something else in the "crappy" category for my client. It's becoming more of a fixer-upper world out there and competition for pieces of crap is getting tough.

Speaking of which, the glut of fixer-uppers and foreclosures out there are bringing the sharks in, circling like blood sniffing flesh-eaters.

How do you keep from being devoured and plug the hole that is your sinking ship?

The mortgage industry is being persuaded (by a rather large stick) to throw a life preserver to homeowners that are going down for the last time. Part of that big stick is made up by the mortgage industry themselves because they do not and I repeat do not want to foreclose on a home. The other part of that big stick is the National Association of Realtors. Realtors have a lot of sway in their states through lobbyists (okay, that can be a dirty word) and by the fact that there is a realtor on every corner; we are a prolific lot.

Realtors are also taught, advised and asked to take a working interest in their communities for the betterment of us all. Some do it better than others (obviously), but the good ones not only want to see you get into a good home but they want to see you keep it. (Really!)

Even in better market times, the bank will work with you when you get behind on payments. The worst thing you can do is nothing. The more you ignore the threatening letters, the madder the bank will get.

Another thing to remember is that the bank does NOT want your house. Believe it or not, that is the last thing they want. In order to foreclose on your house, they have to pay lawyers to do a lot of research and draw up a lot of papers. They have to pay someone to go to the foreclosed upon house and weatherize it, winter or summer, so pipes don't burst or a leak doesn't develope. They have to pay someone to cut the grass. They have to pay a real estate agent to sell the house. At every turn, it takes money out of the banks pocket to own a house.

For that reason, it is in the bank's best interest to help to keep you in your home.

The first thing to do when you get behind is call the mortgage company or bank. If at all possible, talk to your old loan officer. They are nice people (most of them are anyway) and very knowledgeable about how banks work and what services they offer. If you can't talk to that person, ask for someone that has information on how to help you get back on a payment schedule.

At this time, there are several programs available through banks that are designed to either help you set up a payment schedule to get back on track or, in some cases if you qualify, actually funds on hand to pay your shortfall.

Hard times can fall on anyone at anytime. Most households in this country are one paycheck away from disaster and once you get behind on your bills, it is hard to get caught up. But you would be surprised at how many companies, from the utility company to your credit card company to your mortgage company, are willing to help if you just call at the first sign of trouble.

So, grab hold of that life preserver, put an arm through the hole and hold on. There may be a hole in the ship but it doesn't mean you have to go down.