Northern Michigan-Real Estate

I have always wanted to get involved somehow in my community, but never have for some reason or another. Yesterday I went to a Luncheon that the Young Professional group put on at the Garfield Township office yesterday, which included 13 non-profit agencies looking for volunteers on all levels. I didn't know, but there are over 200 non-profit agencies in our community, many of them are looking for folks, like you and me, to get invloved in some capacity.

With the economy the way it is in Michigan the need for support people are great right now. Like I said, I have looking for some way to get involved in my community and now I have found a few groups that my wife and I will be looking at to lend our time and energy to.

I am very busy in my Real Estate career and my wife owns her own business along with our two and four year old girls we are always busy. Even with all of that I figure we can all donate a few hours a month/year of our time to one or more great orginazations locally.

I think as young people in our community we can be advocates for volunteerism.

LANSING - Attorney General Mike Cox today announced a major settlement between the State of Michigan and Countrywide Financial, the nation's largest mortgage lender, resulting from allegations of predatory lending.  The settlement will provide relief for more than 10,000 current and former Michigan homeowners who are struggling with the national home foreclosure crisis.   
 

    "Through our negotiations, we have provided a helping hand to thousands of Michigan families who are struggling with the foreclosure crisis," said Cox.  "And, unlike the Wall Street mess, this was no bailout.  Countrywide is paying, not the taxpayers."
 

    Cox conducted national negotiations with Countrywide and other state attorneys general due to allegations of questionable lending practices.  Those lending practices included misleading marketing techniques and incentives for selling loans with risky features, which may have contributed to the national increase in foreclosures. 
 

    As a result of the negotiations, Countrywide must offer to refinance thousands of Michigan mortgages, provide millions in financial assistance and stop questionable loan practices. 
 

    Under the terms of the settlement, Countrywide will:
 

• Refinance as many as 9,700 mortgages in Michigan, giving families an opportunity to keep their homes, and saving them approximately $129 million as a result of more favorable terms.

• Pay more than $9.8 million to assist Michigan homeowners who lost their homes to foreclosure.  These funds will also be used for borrower education programs and neighborhood rehabilitation efforts.

• Pay relocation assistance payments to certain homeowners who go into foreclosure after the date of this settlement, costing Countrywide up to $70,000,000 nationally. 

• Stop selling subprime and option ARM loans in Michigan for two years, and impose new limits on the sale of low or no-documentation loans.

• Cap the amount a broker can earn to 4% of the amount borrowed.

• Stop an automatic foreclosure process until certain details regarding the mortgage holder's situation have been verified.

• Report quarterly to the Attorney General on the status of its troubled mortgages and what it is doing to keep them from going into foreclosure. 

• Maintain a specified number of staff focused on helping troubled homeowners avoid foreclosure proceedings.

    Homeowners who acquired a loan from Countrywide Financial can call the Countrywide hotline for more information at 1-800-669-6607.
 

    Citizens who feel they are victims of questionable lending practices can file a complaint with the State of Michigan Office of Financial and Insurance Regulation at 1-877-999-6442 or the Attorney General's Consumer Protection hotline at 1-877-765-8388.

http://www.michigan.gov/ag/0,1607,7-164--201239--,00.html

REAL ESTATE Tax Crackdown on Second Homes To help pay for the housing bill passed this summer, Congress has changed the rules for vacation homes and rental properties. Here's what you need to know about paying the piper. By Mary Beth Franklin, Senior Editor From Kiplinger's Personal Finance magazine, October 2008

Congress has pulled the rug out from under vacation-home owners planning to squeeze tax-free profit from their second homes. Under current law, you could sell your primary residence and take up to $250,000 of profit ($500,000 if you file a joint return) tax-free, as long as you owned and lived in the place for two of the five years leading up to the sale.

Then you could move into your vacation home or a rental property and, by living in it for at least two years, get a second bite of the tax-free apple. Even profit that built up while it was a vacation home or rental could dodge the IRS.

No more. To help pay for the big housing bill passed this summer, Congress has changed the rules so that some of your gain will be taxable if you convert your vacation home or rental unit to a primary residence after 2008.

The portion of the gain to be taxed is based on the ratio of nonqualified use -- the time the property is used as a vacation home or rental unit after this year -- to the total amount of time you owned the property.

Assume you bought a second home in 2000. Let's say you convert it to your primary residence in 2011 and sell it two years later. In this example, the home would be used as a vacation property for two years after 2008, so one-seventh of the profit (two out of the 14 years you owned it) would be taxed at capital-gains rates. The remainder of the gain -- up to $500,000 for couples -- would be tax-free.

This tax-law change could be even more significant if you buy a second home after 2008. In that case, none of the time it is used for vacations or rental income qualifies for the tax exclusion. But if you convert it to your principal residence, the longer you live there, the less the profit from a sale will be taxed. And you can avoid the crackdown altogether if you move in before the end of the year, says Raffaele Mari, a CPA in Corona Del Mar, Cal.

But what do you do with your current home? You could rent it to generate cash flow and buy some time before selling it in this slow housing market, says Mari. The tightening doesn't apply in reverse: You'd still qualify for tax-free profit on the home as long as you sell it within three years to meet the two-of-five-years test.

It seems in this volitale economy our government keeps hitting us where it hurts. Everytime something is passed the public seems happy, but who pays for it? That's right...you and I. This time it is just not in headline news. Makes a lot of sense in this economy to decrease opportunity....

What are your thoughts?

How Quickly We've Forgotten

This is something I wrote after the 1st anniversary of the start of the War on Terror. It talks about the Soldiers, but I think it fits in to todays rememberence.

Fallen Soldiers

For the souls of our fallen soldiers

I thank you for your service

and sorry for the price you've paid

For the families who

have lost a hero

we owe you so much

and yet... you can

never be repaid.

HELLO FRIENDS AND FELLOW ACTIVE RAIN AGENTS....

Today is a day of mourning. I got up this morning and read the newspapers from 9/12/01 and began to cry. I am a member of the United States Navy Reserve that has have friends and family that have been deployed to Iraq. This day is always an emotional day for me and many people I know.

Can you believe the most significant day in our Countries history is only really talked about once a year!

As we listen to the radio and hear the 911 calls from that horrific day reminds us of all who lost there lives.

I don't know what to write on this blog becasue so many emotions are running through me. I will write something and then erase it because my mind will go somewhere else.

I wish everyone who knew someone who died 7 years ago the best and I am very sorry for your loss and God Bless.

For all the Hero's who lost there life fighting the war against terror, God Bless You.

Please take a moment to remember 9/11/01

This is straight from my local Countrywide lender.

I wanted to make sure everyone is aware that HUD will no longer allow DAPs starting this Friday, August 29th.  If you have a buyer that is close to writing an offer and is planning on using an FHA loan with a DAP, they will need to have their loan locked by this Friday.  Additionally, the purchase will need to fund by September 30th.

Why is this happening?  HUD has found that the performance/default rate of FHA loans with a DAP have a substantially higher rate of default when compared to FHA loans that the buyer came up with their 2.25%-3% down payment.

There continues to be further discussions about repealing the recent congressional decision regarding DAPs, however, please make sure you educate your buyers as they will no longer be able to use seller contributions to pay for their down payment.....  You will still be able to cover closing costs and prepaids with seller concessions..

I THINK THAT THIS MAKES A TON OF SENSE, BUT MAY HURT AN ALREADY SLOW MARKET.

Daily Real Estate News  |  August 26, 2008Is the Worst Over? Analysts Have Mixed Views

Some analysts reacting to the news that home sales rose a healthy 3.1 percent in July compared to June say the increase predicts further improvement. Others are more pessimistic.

"We are not yet ready to call the current levels a bottom but clearly most of the declines are behind us," says Adam York, a Wachovia Corp. economist.

"The good news is the trough is behind us," says Harm Bandholz, a New York-based economist with UniCredit, but Bandholz warns that tighter lending standards and rising foreclosures will continue to put pressure on housing prices.

Real estate consultant John Burns, who advises large builders and investment firms, says he thinks supply and demand will remain out of whack until there is a 46 percent decline in the inventory of homes on the resale market.

Burns, who is president of John Burns Real Estate Consulting, estimates that by 2010 the most stable markets will reach equilibrium and by 2011, the national market will move into better balance. Overall, he believes that it will take until 2014 for it to be business as usual.

Sources: The Wall Street Journal, Kelly Evans (08/26/2008) and Business Week, Amy Feldman (08/18/2008)

I guess we are in for the long haul. Good luck to everyone.

Hello again:

I am attempting to put together my new website called www.tclakefront.com and I am looking for some advice as to getting the name out there.

Please take a look at the preliminary stages of this site and I would liek some constructive help as well as input on how I can get this seen.

Thank you in advance.

Hello again:

I am attempting to put together my new website called www.tclakefront.com and I am looking for some advice as to getting the name out there.

Please take a look at the preliminary stages of this site and I would liek some constructive help as well as input on how I can get this seen.

Thank you in advance.

I won't bore you with the details of this deal, so I will take you to the closing table last Thursday or one of my hardest short sales EVER!

After a long process and thinking that I wasn't going to be able to sell this listing...and it was going to foreclose in a few days we finally made it to the closing table last Thursday. We still had one hang up where we needed a Power of Attorney for one of the sellers. The catch is that that seller has not been very good with his follow through.

Long story short, I got the POA and we were able to close. Another catch, the lender(Chase) would not accept a wire, they wanted check in hand the next day! (By the way, 2 loans, both with Chase.) It is now about 6:45pm and all the UPS trucks have come and gone for the day, so I had to RACE across town and try to make the last drop off at 7pm.

I didn't make it....

If you know anyone who does short sales, they don't take no for an answer.....well, that's me :) I pulled into the parking lot of UPS shipping and saw that one of the bay doors were cracked open to let in some air for the guys loading the trucks. I am in a nice pin striped suit with my famous pink tie(for luck) and crawled under this 2ft opening. Yes, I did!

I see some pepole loading a few trucks and I hold up my hand and yell, "Can I get these overnighted?" As I said that I am thinking to myself, I am going to get either shot, arressted or both. Fortunatly, I was met by a very nice guy who took the packages and took them to the right person and I was free to go.

I got into my truck and thought that was both the stupidest thing I have done and yet the smartest. If I didn't crawl under that door my seller would have lost her home to foreclosure 2 days later. We literally took this one to the wire and made it happen.

This was an exciting day, but I can still say that I have never lost a home to foreclusre yet!! I will crawl under that door again if I have to.

Matt Hodges

I am 24 with 2 beautiful girls and an equally beautiful wife, but I also have a apssion to be a top agent in my local board....Is it possible to have both a strong family life as well as a thriving RE business?

I am currently number 1 in my office and in the top 7% of all agents in my board, but I want to be number one there too. I am struggling with many things right now and one of them is, how much time to I spend with my family and how much time to I spend working? Both are important, but only one is replacable.

I am looking to grow my business to a level that once I thought was out of reach, and now is feasable, but at what cost? As we watch the Olymics and hear there story of sacrifice to acheive a goal is phenominal but they seem to accept it because of the prize. I hope whoever reads this doesn't think that I am a jerk that neglects his family...that is quite the opposite. I am home often so that my wife can continue her education and dreams, so I am spending time, during the day, with my kids.

I am afraid, however, when I grow my business to a point where I can't get away, what happens then?

Does anyone have any experience with this? I would appreciate any advice.

Thank you in advance.

Matt Hodges

I have been doing short sales and have been quite good at them and have made me good money. The problem is, as many of you may know, it is very hard and time consuming to do these. I am now contimplating changing my primary focus to some other niche.

Has anyone had a n experince with doing this and have any pointers?

Thanks to everyone in advance.

Matt Hodges

Hello Everyone.

I have been in real estate now for nearly two years and half of that time has been full time. I have been quite successful for our local standards, but of course I want to do better. I am currently in the top 7% of our board and number 1 in my office, but it seems that I don't get any respect due to my age.

Can anyone relate to this? I am pretty frusterated that I can do so well but, from my perspective, be just a kid that just happens to be doing well.

My wife and I have always been business minded and forward thinkers. For example; I have started a great business in RE and she is a full time student as well as owning her own massage and spa business with 4 employee's.

I guess I am just venting a little bit, but I would like to know if anyone else feels this way or maybe you are one of those that looks at us in our low to mid 20's and think, "He'll never make it, so don't listen to him."

Maybe I am way off the mark, but I don't think so. Let me know your thoughts.

Matt Hodges

Hi My name is Matt Hodges and I have a problem...I am addicted to sticky notes and need your help!!

I, in my short time in real estate, have done pretty well and I currently sit among the top 8% of all Realtors in my board, but I have a HUGE problem with keeping organized! I will receive a call from a buyer or inquiry of some sort and write the note down on a sticky. From there I will pile it on or near all the other notes I have compiled through the day/week.

I haven't had anything "bad" happen yet, accept ofr probably missing out on multiple deals that I could have had if I was following up on all these sicky notes. I currently have a day planner and a dry erase board, both I will write in/on, but not look at again.

I can't be the only one having issues like this, so does anyone have any easy solutions for me?

Thank you in advance!

Matt Hodges

I would like to open this blog with, I understand what it feels liek to be desperate for a sale. At what cost are we to try and sell a home? It seems that many fudiciary duites have been tossed out the window.

I have only been practicing real estate full time for about a year now and have been very blessed with my success, however, it has been a struggle to get to where I am now, however, I made it and I did it the right way.

I have seen agents sign for buyers as power of attorney when there was a dought whether that agent could do thtat or not, I have had agents tell me the bottom line to get the deal done (of course I have to tell my client that info.)

I am concerned that Realtors will continue to get a bad rap as long as "we" act like this.

I know I can't be the only one concerned with this, but I haven't seen a much in the blog world. Lastly, I would like to say that 90-95% of Realtors I have delt with have been tremendous, but as usual the few make everyone look bad.

Thank you to the 90-95%, and Happy selling! 

Matt Hodges

After another crazy Monday I am amazed with the amount of work there is out there if you just keep positive and striving forward.

I am an average guy who came from a lawn care background that took a very big risk and this past fall(07) I decided I was not going to go back to my full time job in early 08. I will try my hand at this real estate game full time.

If I wanted to keep my hopes in not going back to my secure job I had to work very hard and quickly. I had a mentor with EXIT Realty who showed me that knocking on doors could be a great way to get leads in a down market.....the road less traveled, right? Well, my mentor ended up leaving to try something different and I was left out to dry. He left some of his listings that I was know in charge of selling.  I was super excited! The one that turned up the heat on my business was a little ranch home in a transitional neighborhood that was going into foreclosure.

This is the first time I had heard the term short sale and thought, "This seems like a lot of work." I ended up closing it rather quickly! "Could they all be this easy?" UH NOOO :) Nevertheless, the term short sale became a big part of my vocab. From that moment I started my education in short sales and how to find them. In a short amount of time I have helped many families avoid foreclosure and work myself into the 10% of all agents in our board through May!

I am now getting the calls from the lenders and banks to list their REO's! Man, getting listings without marketing to them......this is awesome! What other business could a 24 year old guy get so much respect so quickly?

I think if anyone is having a hard time with this market, I would just say hang on and be positive. I am having quite a bit of success in the "normal" market as well, so it's not like I am ONLY selling foreclosures and short sales. I wake up everyday thankful for my family and the ability to go to work and do something I truely enjoy doing.

Have a great Day and Happy Selling!!

Matt Hodges

Well.....It's another day in the short sale world!

I have been working on many short sales this year and have been quite successful, but some of these deals seem to really test the limits of my patience.

I took a listing on March 28th and had a good offer by April 2nd. So far so good, right? The lender immediately received all of our documents pertaining to this short sale so there was to be no confusion or delay. Unfortunately, like many prior, the lender "misplaced" the faxes and emails I was sending. We also didn't get to chat with the "negotiator" (I use negotiator loosely with this lender because of their inability to communicate very well,) until the end of April. The last time, prior to yesterday, I talked to the lender was May 2nd! I was supposed to get the approval that day or within a couple of days from then.

After MANY messages and calls to the dept I finally got fed up with the "run-around" and called nearly every hour and left messages on every supervisors voicemail hour my negotiator was dealing with this loan and how I needed an answer today. I am not a guy who pushes the lenders to make a decision, mainly because I think that they will put me to the bottom of the pile if I get snappy with them, however, in this case it seemed to work the other way.

It is funny when you put someone in a corner how quickly they will wiggle out. As I say in all short sale cases, be persistent and most cases very nice and professional, but when in doubt get a bit aggressive. If you are at the point of aggression it probably means the buyer/agent is getting to the point that they are going to walk and you don't have anything to lose anyway:)

Happy Selling!!

Matt Hodges

Short Sale..170 feet of private Indian Lake frontage! Priced to sell QUICKLY! Property features are, Fenced in yard, Large deck overlooking the lake, private doce, fire pit, 170' of private frontage, 2 car garage, and workshop. This year around home or cottage has it's own dock and word has it, great fishing. Don't wait to see this home! Call Today,

Matt Hodges

Short Sale....All offers are subject to lenders approval. Check out this home that has 110' ft. of pvt. Lake Michigan/Grand Traverse Bay frontage! This one will NOT last long at this new reduced price. Imagine yourself sitting on this wrap around deck drinking your favorite beverage & watching the sun set! There's a screened in porch for those less than desirable (rainy) days! This place has 3 BR's on the main flr w/2 BA's & 1 each on the LL. Bring your guest. Stay the weekend or stay forever. Whatever you do, don't pass up this opportunity! If you unfamiliar with "short sales" or would like a brochure please contact me at 231/624-1650 or MHodges@TCExit.com PLease go to www.MattHodges.net  to see this home.

Home located at 5078 Mackenzie Dr  Kewadin, Mi 49648

Thank you in advance,

Matt Hodges