D-I-S-C Personality Profiling

I've written before about personality profiling and its importance in helping me communicate with my clients.

It's so important in fact that I have the D-I-S-C information posted on my website in the seller pre-listing and buyer pre-purchase portions. It's available for anyone to use.

But there are two additional elements:

• how my clients process information I give them
• who's the decision maker

If you expect your REALTOR to listen to you instead of talking at you, give me a call.

$75B Help For Struggling Homeowners

This plan attempts to help homeowners who are having trouble making their mortgage payments.


This plan has two ways in which to help homeowners:

• Those who want to restructure their loan
• Those who want to refinance their loan's interest rate

Each plan has different qualifiation standards so you may or may not qualify. This is the link to the website I mention in the following video.

Having Problems with Mortgage Payments?

We have intra-office training weekly. This week several folks representing companies who can provide help to homeowners facing financial problems met with us. Their names were:

• Rachelle Strutz, XTRA MILE Investment Solutions
• Steve Frandsen, Xtended Grace Mortgage Relief

While I don't usually make referrals based on initial meetings, I have to admit these folks were really impressive so here's their contact information. Both have offices in Gig Harbor.

Rachelle's phone is 360-286-1551 and you can click here for her website. Steve's phone is 253-677-0240 and you can click here for his website.

Here's how they can assist you. If you're having trouble making payments, speak with Steve first. He may be able to convince your lender or servicer to modify your monthly payment by reducing your mortgage amount, reducing your interest rate, increasing the payment term or converting you to a fixed mortgage from an interest only or adjustable rate. This step may enable you to stay in your home if that's your goal.

However, if you're having financial difficulties and you want to sell your home, then speak with Rachelle. She is an expert on the short sale process (you don't have to miss a payment for your lender to agree to a short sale).

There's no guarantee that either Steve or Rachelle can help you but I recommend giving them a call if you are having financial difficulties.

Dave Explains Absorption Rate

In this video Dave explains how absorption rate is computed and how that information can be used by either buyers or sellers to help them on their real estate decisions:

• Is this a buyer's market or seller's market
• What is/are the market trends now and in the short-term
• How much should I ask for my house
• How much should I offer in our purchase agreement
• Are we priced ahead or behind the market

If you have any questions just give me a call.

Have You Heard About Chinese Drywall?

Drywall manufactured in China has become a problem in 25 states so far. The drywall could be the potential cause of respiratory problems as well as being the cause of electrical fires.

How do you know if you have Chinese drywall in your home:

• Does your home smell like rotten eggs
• If you have air conditioning, has your air conditioner turned black from corrosion
• Does it say Made in China, Knauf Plasterboard Tianjin or Taishan Gypsum

Not all Chinese drywall is defective but if you can determine you have drywall manufactured in China, I would recommend you disclose this.

More Short Sale Information

I attended a webinar today sponsored by the National Association of REALTORS on the subject of short sales. Here are the highpoints:

• Almost 33% of listed short sales aren't closeable
• Second (or third) lien holders will eventually accept as little as 10% recovery
• Recourse vs. non-recourse debt is a critical issue
• We need buyers to enter the market (for the right reason) to absorb excess inventory
• As the selling agent, insist in the purchase contract that no other offers will be accepted by the lender (we need to remove the inventory, not anger potential buyers)
• Only show the right short sale properties to buyers

I'll keep you all updated on any new changes or information.

What You Always Wanted to Know About PITI

This week I wanted to talk briefly about the mortgage acronym PITI:

• Principal - how much you borrow
• Interest - the interest rate at which money is borrowed
• Taxes - property taxes assessed by local government
• Insurance - home owner's insurance

Interest rates have been "hovering around" six percent for the better part of a year but if rates increase...so will the monthly mortgage payment.

First-Time Homebuyer Tax Credit Form

I've made several posts over the past two weeks addressing the government's new first time home buyer tax credit for 2008 ($7,500) and 2009 ($8,000). But I didn't have any information at the time on the tax form to be filed.

In my continuing effort to be The Source of real estate information for your family, click here to see (and make a copy of) IRS Form 5405 which you will need to file with your annual tax return.

Clarifying Information on President Obama's Mortgage Plan

The political and financial information from the current administration has been coming with more regularity this week than in the past.

This update is provided compliments of Cherie Kesti who works for Windermere Mortgage. Click here to read the latest on the plan to assist homeowners having trouble paying their mortgage.

Financial Recovery Times for Short Sales and Bankruptcies

Here's some neat information I received from the CRS205 Finance class I attended in February regarding the recovery time for homeowners who are involved in a short sale, foreclosure or bankruptcy.

Being involved with any of these will affect your credit. It may prevent you from seeking additional credit or require you to make a higher downpayment or pay a higher interest rate until after these timeframes, especially if you wanted to buy another house:

• If the homeowners file a Chapter 7 bankruptcy this remains on their credit report for four years from discharge or dismissal.
• If the homeowners file a Chapter 13 bankruptcy this would remain on their credit report for two years from discharge or four years from dismissal.
• If the homeowners have filed multiple bankruptcies the credit report would be affected for five years after discharge or seven years from dismissal.
• If the property is foreclosed this would remain on the credit report for five years from completion and you would be required to make a 10% downpayment and qualify with a 680 credit score (can't qualify for a second home or investment property purchase).
• If the property is turned over to the lender using a deed-in-lieu of foreclosure your credit report will be affected for four years after completion
• If the homeowner/lender sells the property by short sale the homeowner's credit report will be affected for two years after completion.

These are the rules in effect right now as I understand them. But they could be modified as we work our way through the current housing market cycle.

Consult an accountant and/or attorney before you make the final decision.

Dave Jones Talks About Kitsap County's Real Estate Markets

In this video Dave takes a few minutes to discuss the current situation about active inventory, new contracts being written and sold properties in Kitsap County.

Dave also talks about the abundance of short sales and forclosures in the context of our overall markets as of the first week of March 2009.

Kitsap Market Statistics for March 2, 2008

This is a recap of the market statistics for the past week:

• Active listings in Kitsap County - 1,784 (down from 1,823)


• New purchase contracts written throughout Kitap County - 46 (up from 37)


• 16 of 46 new contracts were either short sales or foreclosures - 35%


• Absorption rate for Silverdale - 22.3 weeks (down from 43.5 weeks)


• Absorption rate for county - 43.5 weeks (down from 62.9 weeks)


• Closed sales county-wide - 41 (up from 29)


• 14 of the 41 sales were either short sales or foreclosures - 34%

Summary: The number of short sales and foreclosures is one-third of activity. This is good because we need these properties sold so markets can begin to recover. Click here for average sale price info.

What's Better for the Seller...Short Sale or Foreclosure?

Both short sales and foreclosures can have short-term as well as long-term consequences for the homeowner (seller).

Here are several specific circumstances as I understand them:

• Both will have a negative affect on the seller's credit rating
• Short sale "forgiven" debt becomes an obligation payable to the lender
• Foreclosure eliminates the debt which the lender has no recourse to collect
• Short sale "forgiven" debt may be considered a "taxable event" by the IRS
• Foreclosure debt doesn't result in a "taxable event" by the IRS

If you are facing either of these, it's important that you consult with your accountant or legal counsel to determine the potential consequences of your particular situation.

Kitsap County Market Stats Recap To Date

I just completed a recap for 2008 concerning home sales for all of Kitsap County:

• Number of homes available for purchase in 2008 - 7,861
• Number of homes sold in 2008 - 2,387
• Percentage of listings sold - 30.3%

I then completed the same calculation for the first two months of 2009 county-wide:

• Number of homes available for purchase in 2009 to date - 2,347
• Number of homes sold in 2009 to date - 208
• Percentage of listings sold to date - 8.8%

Buyers: Don't try to "time the markets" because you'll have missed it. If you're serious about buying...do it now! You have the leverage.

Sellers: Your need to get ahead of the markets. Get your general building inspection now and make the repairs. Pump your septic if it hasn't been pumped within three years and order the health letter. And finally...Price Competitively.