Appraisal Pros Prose

There just is not any good news for those of us in the real estate industry, on any facet, these days.

Last Tuesday, U.S. Treasury Secretary Henry Paulson gave a sobering speech at the Georgetown University Law Center. His gravest point was that the decline in the housing market poses "the most significant current risk to our economy."

He went on to say that the housing correction is not turning around as quickly as it previously may have appeared, and "it now looks like it will continue to adversely impact our economy, our capital markets, and many homeowners for some time yet."

It is not only the subprime borrowers having trouble paying their mortgages, he explained, by many other homeowners are having problems as the prime mortgage rates also increase.

Mr. Paulson has come out in favor of developing a uniform national licensing and monitoring system for mortgage brokers to alleviate future meltdowns. He is skeptical of legislative efforts to complete ban such practices as prepayment penalties. He believes that each homeowner's case has to be judged appropriately.

He also warns about too much government intervention to bail out lenders or property speculators, as such actions tend to lead to repeat offenders, rather than cleaning up the problem. He is encouraging lenders to work with their customers that are in arrears and attempt to rework their loans to an affordable level.

And, I say, if Michigan survived the 1980's, we will come back from this, also!

And, so, 'til next time, it's all good!

I found a great, easy check list to see if your home is prepared for the winter cold. Remember your outrageous gas bills from last winter? These 4 steps can help reduce your heating bills by a few percentage points per month, which can add up to hundreds of dollars, depending on how unending our winter is this year!

• First, make sure that all of your exposed plumbing is adequately wrapped. Though the wrapping itself will not save money on your heating bill, it will keep your pipes from bursting and costing you a lot of money for repairing the significant damage to your home. Heat tape should be applied to all exposed pipes, and exterior faucets should be drained and their water source turned off.
• The proper insulation is the key to energy savings. Determining the type of insulation to use depends on a number of things. What type of home, how old is your home, how high are your ceilings, do you have a basement, and what type of heating/cooling system you use. The higher the R-value of the insulation you use, the greater the insulating power.
• Caulk those windows and doors! If you're very ambitious, install weatherstripping on all doors and windows after you caulk them to cut drafts down drastically!
• Don't forget to change the filter on your furnace. Many thermostats are now programmed to tell you when the filter has 500 or more hours of use on it. When the thermostat is flashing "filter", don't ignore it. Check the filter - it may or may not need changing. If it looks gray, then change it. Filters are relatively inexpensive and help your heating/cooling system work much more efficiently. 

So, 'til next time, it's all good!

Not to be forgotten in the midst of the mortgage slowdown are all the brokers, loan officers, processors, and administrative staff that have lost their jobs and are now, ironically, struggling to pay their own house payments!

Since August 2007, scores of lenders have down sized their staffing or disappeared altogether.

Countrywide's Full Spectrum Division laid off 6 employees from it's Troy office; the staff was only 16 total to begin with.

Franklin Mortgage Funding in Southfield laid off 120 employees in 2007, Aegis in Troy let 25 people go, Option One in Novi eliminated 30 positions, and American Home Mortgage in Farmington Hills has lost 25 employees.

More layoffs are announced daily, as more lenders face liquidation of their subprime divisions. Lehman Brothers Holding, Inc., closed its subprime division altogether, laying off 1,200 workers at 23 sites. In Scottsdale, 1st National Bank Holding Company closed its wholesale home mortgage unit and cut 541 jobs. Accredited Home Lenders Holding Company added 1,600 more employees to the unemployed roster.

Banking giant HSBC closed a main financing office and cut 600 jobs in August of this year.

All told, more than 40,000 workers have lost their jobs at mortgage lending institutions. A senior analyst with Celent, a Boston-based financial research and consulting firm states "It's far from over. The subprime lending collapse will continue to ripple through the financial sector."

When the market was booming, mortgage lending jobs were often lucrative even to those with little experience. Many that have lost their jobs are returning to the work they did before the housing boom, or enrolling in classes to learn an entirely new trade.

We often forget that it is not just the families losing their homes that are suffering these days! So, let's try to all be supportive of each other!

And, I still say, 'til next time, it's all good!

The Democrats and the White House are still bickering over the best way to assist the many homeowners facing foreclosure due to interest rate resets and job loss.

The Democrats, including House Financial Services Committee Chairman Barney Frank, Senator Charles E. Shumer of N.Y., House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, have proposed a temporary increase in the portfolios of Fannie Mae and Freddie Mac, along with creation of a position that would oversee a limitation on foreclosures.

Republicans, including the President, have fired back at Democrats for not taking action legislatively. They say that they have heard a lot of talk from Congress, but no action and no plans on the table.

Republicans also are not in favor of creating a new position to oversee the foreclosure problem, and believe that Housing and Urban Development Secretary Alphonso Jackson and Treasury Secretary Henry Paulson are doing enough to alleviate the problem by meeting with mortgage counselors, lenders and servicers.

So, the beat goes on....

As always, 'til next time, it's all good!

Here is the latest on the web concerning the FHASecure Program, designed to assist homeowners who can no longer afford their mortgage payments due to an interest rate reset:

• CountryWide has already launched the program and, as of last week, 35 loans have already been originated.
• First Horizon National Corp. in Memphis is ramping up to begin their participation in the program.
• There are strict rules for the FHASecure program - first being that the mortgage must be 30 days delinquent due solely to the interest rate reset.
• Ironically, the FHASecure program cannot be used to refinance an FHA loan.
• The homeowner must have made six consecutive payments on time prior to the interest rate reset to qualify.
• Homeowner must have 3% equity in home to qualify.
• Some lenders may even issue this loan when the homeowner has been or is in bankruptcy.
• If you cannot qualify for the FHASecure program, try the Neighborhood Assistance Corporation of America based in Boston. To qualify, the homeowners interest rate must be 10% or more and you must have had your mortgage for at least two years.

There will surely be more programs popping up, and I will keep you informed.

So, as always, 'til next time, it's all good!

Since I could not find anything nice to say about the world of real estate, real estate financing, or the State of Michigan's economy today, I will not discuss those subjects at all!

Let's talk about something that we all love - food! Though I do not eat out much, I do like to know which restaurants those that do eat out often recommend. AOL Local/Detroit did a poll and here a just a few of the results:

Best Barbeque:

1. The Bone Yard Restaurant - 30843 Plymouth Rd., Livonia 734-427-6500
2. Chicken Shack - 4040 E 11 Mile, Warren 586-758-2888
3. Memphis Smoke - 100 S. Main St., Royal Oak 248-543-4300

Best Chinese:

1. Mon Jin Lau - 1515 E. Maple Rd., Troy 248-689-2332
2. Peking House - 215 S. Washington Ave., Royal Oak 248-545-2700
3. New Peking Restaurant - 29105 Ford Rd., Garden City 734-425-2230

Best Family Style:

1. Elias Brother's Big Boy - 31270 John R. Rd., Madison Hts. 248-588-6600
2. National Coney Island - 1812 N. Main St., Royal Oak 248-398-6111
3. Rainforest Cafe - 4310 Baldwin Rd., Auburn Hills 248-333-0280

Best Italian:

1. Andiamo Italia - 7096 E. 14 Mile, Warren 586-268-3200
2. Roma Cafe - 3401 Riopelle St., Detroit 313-831-5940
3. Lelli's - 885 N. Opdyke Rd., Auburn Hills 248-373-4440

Best Mexican:

1. Xochimilco Restaurant - 3409 Bagley St., Detroit 313-843-0179
2. Mexican Village Restaurant - 2600 Bagley St., Detroit 313-237-0333
3. Mexican Fiesta Restaurant - 24310 Ford Rd., Dearborn Hts. 313-274-3066

Best Pizza:

1. Buddy's Pizza - 8100 Old 13 Mile Rd., Warren 586-574-9200
2. Amici's Pizza - 3249 12 Mile Rd., Berkley 248-544-4100
3. PizzaPapalis - 553 Monroe St., Detroit 313-961-8020

Best Seafood:

1. Charley's Crab - 5498 Crooks Rd., Northfield Hilton, Troy 248-879-2060
2. Mitchell's Fish Market - 117 Willits St., Birmingham 248-646-3663
3. Big Fish Seafood Bistro - 700 Town Center Dr., Dearborn 313-336-6350

To read the entire survey, please visit http://www.cityguide.aol.com/detroit

Feel free to comment on any of the winning restaurants, or to add your own favorites.

As always, 'til tomorrow, it's all good! (And I have to go get something to eat now!)