The Real Estate Sage at The Real Estate Investment Institute - REII

Among us we have so many short sighted, illogical, unadaptable, entitlementist, functionally incompetents that seem willing to commit occupational genocide.

So many are unable to adapt to change, so many would die before accepting that we're all in this tegether! I believe it was little Bennie Franklin that said:"We must all hang together, or most assuredly we shall all hang separately."

Certainly we are all in the same boat, Honest: REALTORS®, Loan Originators, Mortgage Wholesalers, Banks, Stock Holders, Bond Holders, and Builders.

If we destroy any link of the chain the rest are irrelevant!

If we destroy the contracts between the banks and the borrowers either by entitlement or retro actively changing liability we will limit or destroy future lending.

If we make Loan Originators responsible for 5% of the borrower's debt we will limit access to lenders and force cost up! You can't provide a service for 1 to 2% (conforming/FHA) share it between company and staff and face 5% liability for the loan with no security or recourse.

If we don't enforce existing laws, yet we rely on new ones.

If we sit and complain in this market with some of the lowest mortgage rates anyone can remember.

If we ignore the best values in housing.

If we preach to sellers that they are entitled, that they were cheated, rather than helping them face the cold hard fact and the alternatives available.

We are indeed short sighted and unadaptable!

Bill

William J Archambault Jr

The Real Estate Investment Institute

I try to learn from those I associate with, that's why I like Active Rain. I've been this way all my life, associate with only the best of people and learn and use what I can. I spent 5 days a month for just over a decade with Michigan's CCIM marketing group and Chapter # 1 of The Farm and Land Institute, the best of the best were active in both groups. Some of the best people I ever met.

So it goes today! I learn what I can, interpret it! I apply it and share it judicially, in my own way and accordance with my experience.

Such is how I find myself addicted to You-Tube. I love to listen, I record and post videos. I learned about You-Tube from my friend Jason Sardi. Now Jason and I wouldn't normally listen to the same music, but I stumbled across one from a time we all know and many remember that fits all of us again, at this time.

Bill

William J Archambault Jr

As many of you know I like to expatiate both in writing and orally, but I do it to disinter the truth. To share what others have shared with me over the last 40 years in lending and real estate! What disturbs me is the assiduous instead of judicious use of repartition and volume to bury the truth. We're seeing it in Congress, in the media, an right here in the Rain!

In order to excoriate those who disdain the truth, I'm going to demonstrate a rare act of brevity...

What is the effect of a 22% LTV second at 0.000% APR/interest rate?

Mike Jones told us of a stimulus program for selling REO that provides a 22% LTV no interest second to help finance certain REO purchases. See: Stimulus Money To Purchase Primary Residence. 22% Second Mortgage. Zero Interest Rate. Call Your REALTOR!

Some of you may not know the affect of blending two mortgages on the affective/experienced interest rate of the total loans.

To blend the rates, to determine the actual cost of the money borrowed do the following.

First determine the loan amounts in dollars.

Sale Price $200,000.00

3.5% down payment $7,000.00

Second Mortgage 22% LTV $44,000.00

First 64,5% LTV $149,000.00

Total loans $193,000

Second is 22.8% of the total loans.

First is 77.2% of the total loans.

Now blend the rates by multiplying the individual rates (expressed as a decimal number) by their percentage of the loan (expressed as a decimal number). IE:

First at 4.5%. O.045 X 0.77.5 = 0.0374 or 3.474%

Second at 0.0% 0.000 X 0.228 = 0.000 or 0.000%

Total cost of the money interest rate/experience cost of the total loan 3.474%

With the first at 5.000% the number is 3.860%.

At 5.500% it's 4.250%.

At 6.000% it's 4.632%.

At 6.500% it's still only 5.020%.

Of course it would be better to blend the APR's, but the effect will be just as dramatic!

Think about this! The first is an FHA loan so the seller can probably pay up to 6% of the buyers closing cost! The first is an FHA loan so most of the down payment and can probably come from family! A consumer can potential buy these discounted homes (REO's) with as little as 1% out of pocket and only two months reserve!

Trey Thurmond's blogg today Mixed Reports Add To Confusion On the State of Real Estate

ask what we think of the market. I think the immediate market is one of great opportunities! I think thinking people should be buying! Thinking home owners should get every loan concession they can! It never hurts to ask. Investors should be investing! For surly buying today is better than renting tomorrow!

Bill

William J Archambault Jr

The Real Estate Investment Institute

"Ability is what you're capable of doing. Motivation
determines what you do. Attitude determines how well you do
it."  -- Raymond Chandler

 Ability, Earl Nightingale said that "what your mind can conceive of and believe in you are capable of!" Of course there are limitations self imposed limitations! What abilities you can't develop you can hire! Personal physical limitations are never an excuse.

Motivation, is strictly personal. Personally, I've strived for most of my life to be the person Brenda sees in me.

Attitude, is a desire to live up to your motivation. Attitude is understanding that while you can't do everything today you can make progress towards your goals!

Bill

William J Archambault Jr

The Real Estate Investment Institute

PS: Raymond Chandler wrote the Philip Marlow stories.

Housing prices are going up! Yes, up as long as mortgages are artificially low. The question is how long can we borrow trillions for government spending programs and insulate home mortgages from rate increases!

If today's average sale price is $140,000.00 the buyer with 10% down is financing $126,000 and paying 5.5% on a 30 year fix rate mortgage his P & I payment is $715.41. Assuming the buyers are buying all they can afford what will happen when the rates reflect realty?

Today they can afford a $126,000 mortgage.

At 8% only $97,499

At 10% only $81,522

At 12% only $69,551

At 14% only $66,379

At 16% a lowly $53,200

At 18% even worse $47,470

At 20% like a large car $42,813

At 22% Only $38,966!

You don't think we can get to 22%! Consider what another democrat benevolent boob left Reagan! Obama has spent more in six months than Carter did in 4 years.

The only sure thing is that buying today is going to be better than renting tomorrow!

Bill

William J Archambault Jr

There are few days and times we can remember where we were and with who after a day or two.

The first I can think of was Friday, November 22, 1963 at 1:30 local time, I was in gym class at Portage Central High School, we'd spend the next 2.5 hours there in the cold, they didn't let us get dressed until near the end. At midnight that night I was delivering news papers on horse back because my brother Jack had a paper route and he wouldn't go out after dark.

The second 4-16-64 at 5:30 PM, I was at the wheel of the family station wagon with my arm around Sunny Sargent, we were stoped at the light at Millem road going South on Westnedge. In Portage, Michigan we were in the left lane. I'd got my drivers license two hours earlier, my Mother had picked me up at school and taken me to the Sheriff's Office to get my license, I'd taken Mother back to work for my Father to pick up latter, then left with the car on my own for the first time. Dad had picked Mom up they were sitting in the right lane next to me. I smiled Sunny waved tentatively, the light changed I turned left. My Mother still finds occasions to tell that story.

Then there was 4-24-‘71 at 7:00PM, I was in the church in Gobels, Michigan waiting at the alter for Brenda, I don't remember any thing else but Brenda tells me the story and she has photos.

I remember Eric's birth and Amy's.

What brings all this to mind? Walter Cronkite's death and today is the 40 anniversary on the first moon landing. I was a young marine on Camp Pendleton training to go to Nam in just 3 weeks, but that night I was at John Lukey's home in Ontario, CA sitting with John, his wife and younger daughter, Chris. We were all watching Cronkie's report on the first moon landing

Bill

William J Archambault Jr

Dan@frendilybanker.uuu

11:33PM 03-11-09

Dan,

You have to do this I'm entitled!

You don't need any other opinions! De has been a professional REALTOR for 12 years, she's sold almost 18 houses! She'd have sold more except for you bankers!

I read the bloggs!

"That's what the insurance was for! Unbelievable. I don't blame the Seller for not paying."

You're not going to dupe me! I know what I'm entitled to, you that government money to protect me!

I won't make any more payments!

I'll sue, I know what I'm entitled to!

Foolish and Guidable Smith

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Foolish and Guidable Smith

4:12PM 3-28-09

Dear Mr and Mrs Smith,

I've reviewed your latest letter and your account. I'm sorry to in form you that you don't understand what you're entitled to.

You are entitled to peaceful enjoyment of your home on the terms you agreed to with so much enthusiasm to get the house.

You are entitled to equal consideration of your request. The current housing crisis has hurt everyone and we have settled with some of our mortgagors when it was in our opinion best for us. But, for your request to be considered we need the exhibits we ask you for, the same exhibits we ask everyone for.

You are entitled to believe the bloggs you sited, but that doesn't make them true or relevant. I'm sure the bloggers believed it when they wrote it. Some of it appears to make sense if you don't know the subjects or the facts. We have so much access to information today that it's hard to tell facts from well written balderdash! The worst offender is the TV news sound bytes, unfortunately many well intentioned bloggers get all there information from the TV and other unknown bloggers. That some thing is often repeated does not make it true.

I reviewed your account and noticed that you haven't made your latest payment yet, another payment is due this week. If you haven't made your payment before the next one is due, you are entitled to have us report it delinquent, just as you're entitled to us report your on time payments. There are sever credit implications to late payments, you have several credit cards that I'm familiar with, those cards will probably jump your interest rate to over 30% even though you're on time with them, it's called universal default.

You are entitled to consideration if you simply can't make the payment for some reason. However your statement that you are not going to make your payments limits this. If you should let the payments go delinquent you are entitled to equal treatment. Our current policy on delinquent payments is that we will file an NOD, notice of default at the recorders office the day after the third payment is due. In our state we will be in court about six weeks later and you will be out of the house two weeks after that if you don't cure the default and pay all our leagal expenses.

Our stock holders are entitled to that. How ever we remain willing to review your request if you will provided the information we ask for.

If you'd like to preserve your credit I can take your payment up to closing time on the last day of the month, or you can make it on line until midnight.

It maybe unfair but the money from the government was not meant to protect the individual debtor. The PMI you pay is for the privilege of putting less than 20% down when you wanted a home. The PMI save you 10 to 20 years of renting and saving for a down payment.

Dan

Dan@frendilybanker.com

This is the second exchange between these two antagonist.

Bill

William J Archambault Jr

The Real Estate Investment Institute

Dan@frendilybanker.uuu

8:30 AM 01-017-09

Dear Dan,

Three years ago shortly after our tipplers were born you helped us get into a home big enough for our now six kids. Thanks to your help and that PMI program we got a wonderful home with room enough for the girls an another attempt for a boy.

Last night my sister in law, Demented, the Doctor's wife, a REALTOR® told me that the house is worth less than we owe! She said she had a buyer who'd pay $300,000, but we still owe you $411,000.

De explained that since you tricked and cheated us into over paying your friend the builder that you should take the proceeds from the offer after her 8% commission and forgive the rest of the loan!

Attached is the offer and some of the papers De said you'd want. I didn't fill out the financial statement! Why should my finances matter? De included a list of other houses, two even looked like ours, all over town that sold at this price.

I know you can do this because you did it for a guy I worked with until he got fired. I read the bloggs I know what you did to us and that you got government money to help us. De said it's called a "Short Sale" because you shorted us out of our equity and that you make money because you forced us to pay mortgage insurance.

Please hurry, There's a house down the street we'd like to buy. The payments will be a lot lower and De says the 5.5% your charging is screwing us because the rate is now 4.5%.

Foolish and Guidable Smith

fgs@entitled,com

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fgs@entitled,uuu

3:35PM 03-07-09

Dear Mr. And Mrs. Smith,

I have received and reviewed your e-mail. We will need all of the exhibits including your completed and signed financial statements, if we are to consider taking a loss and releasing your mortgage. We need to consider your ability to pay as agreed and the likelihood of an even greater loss to us. We will need to come to an agreement with the PMI company. The private mortgage insurance company that believe in you and bonded you, protecting us incase you default. Unlike if we foreclose on you the PMI is not obligated to pay us if we settle with you.

We will also need to get several BPO's, professional real estate broker price opinions, to know if this is a fair marked value, at this time.

We do some times allow short sales when in our opinion it's best for us to do so.

I'll be watching for your next letter.

Dan

Dan@frendilybanker.com

This is just the first exchange between these two antagonist.

Bill

William J Archambault Jr

The Real Estate Investment Institute

Missy Caulk posted this today:

Missry is the real estate broker I'd call in Ann Arbor, Michigan.

Thanks Missy!

http://activerain.com/blogs/missycaulk

If you are in the mood for You Tube viedos check out one ov my favorites:

The creative talents of some people never cease to amaze me.

Bill

William J Archambault Jr

Random Rampant Ranting

Sympathy Is Not Help!

Emotional empathy cures nothing, no one!

Caring can not overcome incompetence.

Misery loves company.

Caring incompetents are good company.

"There ought to be a law" is ignorance, there almost always already is a law.

"We need to enforce the existing laws" is wisdom.

Charity abounds with other people's money.

Personification of corporations is as illogical as the alienation of the people from their corporations.

In foreclosures no amount of name calling will hide the fact that some one defaulted.

No amount of time alone will create experience.

Religion and love require faith. All else should be based on education, experience and logic.

 You can't help everyone.

You don't want to hurt anyone!

Apathy is not immoral.

Some apathy is required for logical analysis.

Licenced means taxed nothing more.

Not being caught, having done it before, is not the same as legal.

Retaining teachers based on tenure and paying them based on seniority, not competence explains much of today's society. "Scooby Do and Friends" fighting the evil corporations explains even more.

Saturday School, IE: Scooby has replaced Sunday School for teaching morals.

It's alright to tax and demand concession when you're excepted.

Acronyms,after a name mean time and money spent nothing more, often less.

You can't have political integrity with out constituency competence.

 Unintended consequences, were often just hidden.

"He had a kind heart" is as good an epitaph as "He had the right away!" Good with out competent judgement serves no one.

Bill

William J Archambault Jr

Do you keep your web-cam plugged in? Do you keep your web-cam atop your monitor? Do you forget to shut your web-cams privacy shield?

Do you ever open software programs inadvertently?

Have you considered just how often you're naked on the web? How exposed, how visible you are. Have you ever considered that Active Rain is the largest purveyor of naked REALTORS, Naked Loan Originators, Naked Stagers, Naked Appraisers, Naked Title Agents, and at least one babbling old Sage.

Voyeurs flock to Active Rain to see you expose yourself! Are you in shape? Are you prepared to be exposed? Are you proud of what you're showing?

Do you really think I'm blogging about nudity?

I'm not. I'm talking about intellectual nudity, philological nudity, ethical nudity, competent nudity, and professional nudity!

With a few exception for listing agents who only post adds for there listings, those of us that actively blog bare our soles! We expose our ethics. We expose or morals. We expose our way of doing business!

The Voyeuristic consumers are going to see all of you! Every single word you post. With that in mind, slather your self with "SPF 50 Integrity" and get rid of your tan lines!

See you all of you on the web!

Bill

William J Archambault Jr

The Real estate Investment Institute

Boaters like home owners never except to be under water, but it happens! Normally at the worst possible time, the most inopportune moment or as my friend from PA would say the worst possible epoch!

In times of peril boaters wear a PFD, Personal Flotation Device. A life preserver!

PDF's can't keep you from going under water, but they do bring you up again.

Home mortgages have a built in PDF!

Home owners continue to reap the benefits, continue to enjoy the use of the home during submersion! Payments don't go up. The house doesn't sink because you're under water. You have only to keep your wits about you and the mortgage PDF will support you.

The magic of home loans is that they amortize! Amortization is the systemic repayment of principal. Regardless of your current or former equity your payments will remain as you agreed to them and your loan will be paid off on the same day as you originally planed! Amortization is the home buyers personal flotation device, it will always return you to the surface, always.

There are reason to default most are out side the home owners control, but negative equity, being under water is not one of them!

Renting on the other hand is like jumping off the boat and taking along the anchor instead of a PFF!

Bill

William J Archambault Jr

The Real Estate Investment Institute

I stopped posting these short videos because of production problems, I think I' over come those problems. These videos are all on real estate and under three minutes in length.

Today's subject Strategic Defaults been the subject of several recent blogs because a recent study show 26% of defaults to be strategic, home owners choosing to default as opposed to being forced to default.

Bill

William J Archambault Jr

The Real Estate Investment Institute

A young friend speculated that American patriotism was arrogant and bigoted. Here is my response.

Rodney King ask :"Can't we all just get along?" He had an excuse, he's a spaced out drug addic. Windrow Wilson had no such excuse. He was simply naively optimistic.

I wish I could sit you down for an evening with Brenda and me to discuss this, alas I'll have to try and put it into a few written words.

There is no prejudice in American patriotism no bigotry! Despite personal prejudices America has answered the question "is it nature or nurture?" It's nurture! In America every race, people from every where in the world have succeeded beyond their wildest dreams. American independence has allowed any one and every one a chance to succeed. American independence has provided a standard of living for our poor that is the envy of most of the world.

Celebrating independence, is second only to celebrating God. For those that don't believe in God it should be their biggest celebration, for no where is the freedom to believe as you wish more acceptable than here!

If we are to be "planeteers" are we to live in squaller like Obama's brother or are we to lead and inspire? If we give up capitalism who will provided food and medicine to the rest of the world? Who will provide hope?

Arrogance is only self delusion when it's wrong, when it replaces accomplishment instead of celebrating it.

My dear if you get your wish please remember:

"Each evening, from December to December,
Before you drift to sleep upon your cot,
Think back on all the tales that you remember
Of Camelot.

Ask ev'ry person if he's heard the story,
And tell it strong and clear if he has not,
That once there was a fleeting wisp of gloryCalled Camelot.

Camelot! Camelot!
Now say it out with pride and joy!

Camelot! Camelot!

Yes, Camelot, my boy!
Where once it never rained till after sundown,
By eight a.m. the morning fog had flown...
Don't let it be forgot
That once there was a spot
For one brief shining moment that was known
As Camelot."

Thank you Alan Jay Lerner and Frederick Loewe how wonderful your vision of Camelot. How sad if America is only to be remembered!

America in all it's flawed glory is to be experienced.

Bill

William J Archambault Jr,