Help!

Unless you are living in a hole, you are aware that there are a record number of foreclosures across the country. If you are living in a hole, it might be because you have been foreclosed upon. And if your head is stuck in a hole in the sand, you might very well end up in foreclosure.

The state of Ohio has the dubious distinction of being number one in the nation in foreclosures. There are many factors; stating that the housing bubble has burst is putting it much too simply. What caused the bubble to burst.

Banks, realtors, bankers, home buyers, home sellers, bankers, mortgage companies, government regulations, lack of government regulation. Oh, did I mention bankers and mortgage companies?

In other words, we all had a small part in it if you have been involved with buying or selling a home in the last 3 years.

Realtors:
Hindsight is 20/20. If someone walked into our offices and wanted to buy a house, we didn't care how or why the mortgage company lent them money, we just sold them a house. I have been guilty of this and have even gone so far as to tell young couples that money was so easy to come by that their dog could get a loan. Half in jest, full in earnest.

Banks, bankers, mortgage companies:
Come on guys! Did you really think that someone making $40,000 a year could afford a $300,000 house?! During the last 3 years, banks seldom looked at ratios (your income in relation to your debts). All they wanted to see was your credit score also knows as your FICA. [Credit scores are based on your ability to pay back money, ie make monthly payments on time. So theoretically, if you owed a million dollars, the bank didn't care as long as you made your payments on time.]

Also, the banking industry came up with all kinds of "creative financing" designed to get you into just about any house your little heart desired. Interest only, balloon, adjustable rate, no payment for an extended amount of time (then they hit you big). More on all of these terms later......

Buyers and sellers:
Okay, so its natural for everyone to want a place to call their own. It is also natural that if someone is willing to give you money, you will take it. So if a buyer can give a seller money, the seller will stand there with their hand open. And the more money to spend, the more was charged. (Do NOT confuse this with inflation.) This phenomenon caused a little condition known as "getting upside down." Sound uncomfortable? It is, especially if it involves your pants pockets being open whilst you are being hoisted into the air by your ankles. More on this condition later.......

Bank regulators vs de-regulators:
Think about the Savings and Loans scandals of 20 years ago and make up your own mind. If you are less than 2o years old, ask a grown up.

So, if the foreclosure dragon is breathing down your neck, HELP! is on the way.........

I'm Only Sleeping

ZZZZZZZzzzzzzzzzzz!!!!!!!!!!!!!

As the mercury rises outside, people's energy drops. This must be the reason why it has been so quiet today.

I made some follow up phone calls to prospective clients to touch base with them and see what they thought about the last bit of free information I gave them. Sorry, it's amazing how fast you get discouraged after even just one day of "not much happenin'". I spoke to a woman this morning that I have been corresponding with since March; we have never met. I thought I had found her the perfect home; location, price and setting. She was to talk to her banker about taking out a bridge loan since they did not want to put their home on the market until some work was done.

[A bridge loan is a special type of mortgage where your old home and your new home is financed together. Therefore, you do not have 2 mortgage payments. You basically end up with 1 1/2. It is one solution to getting your dream home before it gets away while you sell your current home. Then in the near future after you have sold the old home you can refinance and have just one normal payment. The pitfalls are that you are saddled with a rather large mortgage payment and there is always the chance that the old house will not sell in a comfortable amount of time. Please talk to your banker for specifics.]

Well, she decided that a bridge loan was not for them even though the house was perfect, etc. She was concerned that the amount that they could afford to offer the seller would not be fair to the seller. Boy, you don't meet such nice people too often! Most potential buyers want to get the home for the lowest price possible; that's the name of the game. I will follow up again soon to see if she would want to reconsider since the sellers are very motivated.

I also spoke to a gentleman interested in some new construction he had seen in a new subdivision. Again, the seller who is also the builder is very motivated and is willing to come down quite a bit. Hopefully we can get them together and I can get the buyer pre-qualified quickly. (Yes, I know. I should do this before even getting started, but different situations call for different approaches. As the saying goes, "The definition of insanity is 'doing the same thing over and over again and expecting different results.' ")

The reason I say this is because a young couple came into my office who were looking to buy their first home. I sent them to several banks to get a pre-approval letter and I haven't heard from them in 2 days. First time home buyers can get scared when cold reality sets in. This is a balancing act that takes a bit of discernment and there really are no pat answers as far as I am concerned. You just have to be gentle and understanding and give everyone the amount of space they require. And remember, this is not a contest; so please, no wagering.

When I'm Sixty-Four

Old houses have always been my thing. You would think that after

almost 30 years of dealing with these monstrosities I would have learned my lesson. But nooooooo!

Take this home to the right, for example, at 283 N. Mulberry St in Wilmington. This home has a story to tell. It is about 100 years old. It most probably started out as a four room house, which was not unusual in those days. The woodwork in the front of the house is quite ornate and the front window has leaded glass at the top.

As you move back through the house, you can see that it has "add-on-itis". As the family grew, so did the house. Room after room after room, to the point where you can't tell which room should be used for what. The kitchen as been "updated" so unfortunately not much is left of its original character except the huge windows and some beadboard. The original kitchen may have started its life with a hand pump then quickly moved to a huge deep porcelain coated cast iron sink. No cabinetry, of course, but the walls would have been lined with large pieces of furniture full of dishes, food and cooking pans. The "Hoosier" cupboard was the first leap in kitchen conveniences. It featured a huge flour bin in the top portion and little inside wire shelves to organize all your baking needs.

There is also a walk-up attic. Homes that were added onto frequently would finally come to the point where the current roofs just didn't make sense anymore. At that point, a complete new roof would be added to encompass the whole house. Look closely at this house and you can tell that the large pyramid style roof almost dwarfs the house. The result is the huge attic; more space for the family to grow.

But as so often happens somewhere along the way, for reasons unknown, the home falls into disrepair and it becomes a rental property and its rich history of all the families that have lived and loved there is lost.

I guess I have just answered my own question. THAT is why I love old houses and that is why I still live in an old house.

So when it comes time for you to buy your next home, don't just automatically think "new". Think about all the wonderful qualities of older homes, from rich wood floors to soaring attics. Sure, it might take a little "sweat equity" but you will be doing something nice for your home town; keeping it beautiful. And you will also be lending your own rich family history to that of your "new" old house.