Wednesday, December 16, 2009

TBWS - Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

TBWS - Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Click on this link to see the MBS video.

Man of the Year 2009

Why TIME Chose Ben Bernanke

FED: Rates to Stay Low !!

The federal reserve met today and choose to keep the Fed Funds rate at or near zero least for the the near future.

My blog yesterday was supposed to say "Rates Stay Low Until 2011, not 2001" typo.

Friday, December 4, 2009

FHA is on the road to tightening up !!

I hate to think where we are headed in the Real Estate Market if FHA raises the down payment required on an FHA mortgage? The other option I have heard to help raise the reserves fund for FHA, which remains dangerously low, is to consider raising the UFMIP and Monthly factors. This would be much more "gentle" as this would slightly raise overall mortgage payment to the borrower without removing the purchase option altogether which is what I'm afraid an increase in down pmt would do.

Wednesday, December 2, 2009

Time To Buy or Refi ??

Interest rates have declined over the last couple weeks but edged higher on Tues Dec 1st - is it time to "Get off The Fence"? Contact me and we can go over the many options available to you.

Interest Rates

Steven DeMorett Interest rates have declined over the last couple weeks but edged higher on Tues Dec 1st - is it time to "Get off The Fence"? Contact me

Monday, November 23, 2009

USDA Rural Development

Please contact me about this program if you are interested in a:
No Money Down, low interest rate loan for the purchase of a primary residence!
You DO NOT have to be a first time homebuyer.
With the inventory of homes on the market, the prices at the lowest level and GREAT rates---people are finding it easier than ever to qualify!

Friday, November 20, 2009

Work Every Deal

I was able to work a deal that was turned down by another bank/broker/lender. If we work though every deal we sometimes come up with a new solution. What a Great Feeling When That Happens!

Wednesday, November 18, 2009

Training for the January 1st RESPA changes

HUD has firmly stated that they will NOT delay the effective date of January 1, 2010 - BUT they will not enforce sanctions in the first 120 days, as long as the company has shown a "good faith effort" to comply with the "Good Faith Estimate" ;-)

We have scheduled an in-depth online training with two RESPA attorney experts. To get details, go to:

Tuesday, November 17, 2009

GFE and HUD-1

Some POSITIVE news to start our morning.!!!

HVCC over the next couple days and now this --- EVERYONE should keep an eye and hear out and please report any news you have and I can distribute it.

**** I will be looking into the validity and following the discussions on this but this NEW GFE AND HUD-1 EFFECTS EVERY TRANSACTION and a delay would be a start.


Monday, November 16, 2009


HVCC -- There should be a segment on HVCC this Wed and possibly again Thurs morning on Fox news network ( more info on time will follow if I can get it). The petition that has been circulating and signed by several thousand to contest "Home Valuation Code of Conduct" is being presented to Mr. Cuomo on Wednesday afternoon. We hope to see a lot of news outlets covering these events in the coming days--it will be very interesting to see what happens.

Monday, November 9, 2009

Do you heat with Propane?

A customer who was purchasing a rural home asked me yesterday what the cost of propane is per gallon. Since I don't heat with propane I had no idea of the cost. I thought, no problem, I'll just google "cost of propane in Minnesota"

I was suprised how hard it was to find specific information. The attorney general's office made reference to a weekly table of current, average propane costs, but they made it hard to find and hid it at the bottom of a bunch of other figures that had nothing to do with propane -- at least from my point of view.

This is the link to the chart and below is what I learned.

The lowest price in Minnesota for propane on November 2nd, 2009 was $1.32 per gallon

The highest price was $2.51 per gallon.

The average price was $1.64 per gallon

I also learned:

If you own your propane tank you can shop around for fuel at the cheapest price.
If you rent your tank you might be charged more by your provider just because they know you can't shop around.

I was going to supply a link to the article that tells about this but I can't find it again even though I know exactly what I'm looking for - the state needs to spend a little effort on making it possible to find things -- good grief!

The AG makes it sounds like buying propane could be tricky business. They make a point of saying "shop around".

The two bedroom house that started me on this search has a 750 gallon tank. At the average of $1.64 per gallon you would think it would hold $1,230 worth of propane, but you can only fill a propane tank a little more than three quarters of the way which brings the value down to $1,155. I doubt you'd want to let your tank go empty so it seems to me $1,000 would be an expensive fill for a 750 Gallon tank.

The next question, which I can't answer, is how many times a year do you have to fill a 750 Gallon tank for a 1200 sq ft house? I know that natural gas is a little cheaper than propane to heat with and a lot of 1200 square foot houses average more than $100 per month for natural gas. I would bet that for this 1200 square foot house with a 750 Gallon propane tank, the gas man would come at least twice a year to fill the tank.

It would be nice if someone who uses propane in this part of the country would share what they know.

Here's a link to the energy web site:

Here's another link to a report on some of the AG's actions related to propane:

Thursday, November 5, 2009

A message from Steve at SJD Mortgage

The legislature did extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30.
The Senate's bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would also apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years. ( this information is coming from the site ).

Monday, May 11, 2009

In this market- how long is reasonable to have our house listed?


"We're priced in our comp range - and have been told our home shows really well - so I think we've done all WE can to get our house ready. Our Realtor has done a great job advertising and having open houses, but property is just not moving. We really just want to upgrade while prices and interest rates are low, but don't HAVE to move/sell because of jobs or anything.
How long is reasonable to leave our house on the market these days? We won't lower our price because we're already at a pretty narrow profit margin and to go down $5K would not leave us with enough profit to make a down payment on a bigger house. Also, we don't want to live in limbo forever. We have a toddler, and keeping the house "show ready" all the time is a challenge. We had planned on taking our house off the market after 90 days (June 1st) - but I'm now wondering if that was reasonable. We've been listed since March 3 - have had several lookers, but no offers. What are your thoughts?"


If you plan on moving to a more expensive home it may be a good time to make the move even if you take a loss. The more expensive home that you are looking at moving into is probably at a more discounted price than your house. When prices start to go up the price differential between your house and the more expensive one will likely increase.

The problem, as you mentioned, with discounting your current house is that the price drop will come directly from the equity you'd like to use for a down payment. So it may not be realistic for you to move now.

90 days is a pretty short list period in these times. If you are serious you might consider giving it longer. If you can put up with having your house on the market another 90 days might be a good idea.

The weather has finally warmed up, interest rates are low and there are signs of life in the real estate market. Give your agent a chance to get the job done.

Here's a link to a listing of homes on the market in your area, Rochester Minnesota

Saturday, May 9, 2009

How long should I wait for a Short Sale


Here's a question that comes up frequently with regard to purchasing "Short Sale" properties:
"We have a signed purchase agreement to purchase a property from the bank..."

"it has been over 60 days I have not heard anything yet :( so far..the seller's agent was suppose to hear something a week ago..but no news yet..I am wondering if I should bail..we have to keep changing the close date :(..and also what if the condo going into foreclosure while I am waiting what will happen then?"


You got further than a lot of people. Banks often take a long time just to repond to an offer. I discourage buyers from getting involved with short sales at all because what you are going through is common.
Don't assume that banks will behave logically or even in their own best interest. If this is the only house you are interested in and you have all of the time in the world you could wait and see what happens. Otherwise I would move on(assuming you are not legally bound by your contract) and avoid anything that is a short sale in the future.
Typically when a property is foreclosed in Minnesota tha bank hast to wait for the six month redemption period before they can sell the property. In some cases, if the property has been abandoned, the bank can get this time period accelerated, but other times banks seem to forget a property exists and it can just sit for over a year before anything happens.

Friday, May 8, 2009

We want to put a REALLY low offer on a home that has been in foreclosure for 2 years what is too low?

This question was posted on Trulia, Here is my response.

There are two ways you can look at a house when you make an offer on it. The first is as an investment. Your offer is based on the numbers. If things don't work out you move on to the next one and so on until you get an offer that works. With this approach you might be willing to make a very low offer because it's no big deal if you lose it. Make enough really low offers and you'll get lucky every once in a while. If a house is a really good buy at the list price it is probably obvious. In that case even an investor might make a full priced offer.
Most people, even investors, have an attachment of some sort to the house they are trying to buy. Once you put the effort into evaluating a house and making an offer its probably a waste of time to make a very low offer. You need to look at the market and decide if it's a good deal. If the house is priced right and if you would feel bad if someone else got it for a dollar more than your offer, make a higher offer.
Ask the agent what they think. If your agent is not the listing agent ask him/her to ask the listing agent for you. Just by asking the question you might find out things that will help in your negotiation.
Looking at the homes on the market in Robbinsdale I can see there are 28 homes under $100,000. There are also a lot of new listings. You should take into account the prices of other similar options.