Friday, October 2, 2009

Crazy Bank Story # 2

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Crazy Bank Story # 2 (edit/delete)
Yesterday I wrote an astonishing crazy bank story and a newspaper has asked me to write these stories frequently and they will bundle them and write a feature article.

Today's article is not so much about crazy banks but where a bank that acted slowly has caused extreme stress for a seller and a buyer. They have also lost money for two Realtors, a mortgage broker, a title company, and the new lending bank.

The property is in San Diego and the selling client contacted the bank to see if they would approve a short sale. Of course, the answer was to go thru the process. The Realtor listed the property and received an offer. 11 months later the bank-both first and second- approved the short sale. At the time they approved the short sale (11 months later) They demanded that the transaction close within 3 weeks. So, now the loan officer, appraiser, inspectors, etc; the whole gang is scrambling to get the deal done.

Buyer goes in and signs papers to close the deal. The next day the second mortgage division of the bank now announces that they want the seller to sign a note promising to repay the second mortgage. Deal dead. In California banks cannot go after a seller for a deficiency balance for purchase money loans. But in the case of a short sale this bank is demanding a signed note to recapture their loss. The seller will now let the bank go thru foreclosure and the second still ends up with no income. They could have made everyone aware of this 11 months ago and saved a lot of effort for many people. Seems the bank wants to sit and watch people scramble and all end up with nothing but frustration..Of course I will tell you. The bank was Chase.

Doug Jones

Wednesday, September 16, 2009

He is My Friend

Joe Pon is the owner of a magic store in San Francisco. This store is frequented by all the stars of magic, including the giants in the industry; Burton, Copperfield, Chris Angel...the list is long.

The store is filled with pictures of the greats and want to be greats. Most are autographed with a personal message to Joe. As Joe talks about each picture he will comment, "He is my friend." I bet I have heard Joe say, "He is my friend" more than 500 times. Think about what a powerful affirmation that is.

Friends help friends and if it is true that we get what we focus on...then, "He is my friend." is one of the most powerful affirmations. Imagine opening the computer and the news pops up. There before you is a political person that you don't like or disagree with. Why not think, "He is my Friend." Instead of a body feeling of tension and anxiety, there is a feeling of relief. Perhaps, there can be a feeling of joy.

Thinking about your clients or co-workers or those involved in the transaction that you are doing, simply think of every one as your friend will make the day go better. It will probably make the transaction go better.

Joe Girard (listed as the world's greatest salesperson) used to send out cards to his clients that simply stated, "I like you." This is the same idea. Use it and see how much your sales can increase and how much happier you will be.

By the way, You are my friend and I like you.

Doug Jones
(408) 209-6773 cell

Tuesday, September 15, 2009

My Mantra- I help People

We all wear many hats and sometimes it seems to me that the hats we wear are in conflict with each other. I kept thinking about the hats I wear and have come to a consolidated hat that says "I help people".

I am a mortgage broker and love to assist people with their finances and home purchases..then, I teach a class called Mental Magic and help people with achieving success. And, as a magician I get the joy of making people laugh.....

I am not Greg Frost, Tony Robbins, or David Copperfield. But, everyday I am a cheerleader to people and I like my Mantra, "I help People".

(408) 209-6773

Friday, September 11, 2009

How can the FHA be in trouble?

I just read an article from the National Association of Realtors that states FHA may be in trouble and may need a tax payer bailout.

How can a company that charges 1.75% upfront and a monthly .55% on every loan be in trouble?

FHA has been the loan most in demand these past two years so their business volume is good. Their fees are high.. All this proves to me is that excessive paper work (if you have ever done an FHA loan, you do know what I mean) does not make good loans.

At 96.5% loan to value perhaps FHA could raise the credit quality and require some reserves. Perhaps they should raise the quality of the loans and at the same time reduce the paper work required for an FHA loan. CalHFA in California has a 6 month insurance policy that protects borrowers who lose their jobs- perhaps FHA could consider a program such as this.

As much as I get frustrated with FHA, they are needed and I hope they make some quick adjustments and do not need a tax payer bailout.

Doug Jones
(408) 209-6773 cell

Thursday, August 20, 2009

Always Over Prepare

I have now given my Comedy Economy magic talk four times. Each time it gets better and better but I learned about over preparing at my last talk.

The talk was to a Realtor marketing group in the Silver Creek area of San Jose. During the talk I had an audience member choose numbers at random. Eventually there are 5 rows of 6 digit numbers. Then I have a person add the numbers-the magic is after the second set of numbers are written down I already present the answer.

I had given the talk three times with no problems but for some reason I could not explain to the Realtor group how to add the numbers. It was not them or because they are Realtors; it was that I was unclear in my explanation.

So, I will be giving this talk to the National Association of Business Economist next month and I will take a simple calculator with me and explain to a participant exactly what I want them to do. That way there will be no glich and no problem.

I have learned: Don’t practice until you get it right. Practice until you can’t get it wrong !

Doug Jones

Wednesday, April 8, 2009

Be Unreasonable to Get Results

I recently took a class where the comment was made that sometimes we must be unreasonable to achieve a goal. I got home late that night and the TV was on and there was Tony Robbins and he commented that the really successful people are unreasonable. This got my attention and I have decided to be unreasonable.
Most of us are so predictable. We go to bed at the same time, get up at the same time, eat the same foods at the same time. The list of habits go on and on. Habits are good things because we can establish a routine without really having to think too much. But, when we want to break a pattern or create something new; then it is time to be unreasonable.
My wife has been working in my office (free) for the past year and she was recently hired on to work at a local college. Her hours are 3-midnight. She also still works 3-4 hours a day in my office. Wow, such hard work and sacrifice. So, I decided to become unreasonable and work many many more hours while she is working this job. My schedule is now for 68 hours a week. I know, here are those out there who have worked that many hours or more for a long time. But for me it is new.
This is still only a couple of weeks new but I am enjoying the process. I market more...much more. I am more up to date with paper work and I am writing blogs again. Of course, the desire for being unreasonable is to earn more income. Like many mortgage brokers and Realtors the past couple of years have been a financial hardship. Can unreasonableness turn that around? I hope so.
Doug Jones

Saturday, August 23, 2008

It could be easy to not tell the complete Truth

Today my client visited me and insisted on refinancing his ARM that is coming due into a 30 year fixed rate loan. In his eyes the problem is, his 5 year interest only loan is going to adjust or 'reset', a word used a lot by media. His present loan is wonderful; 5.25% interest only but it resets in December.

It could have been so easy to simply follow my clients wishes and do a new 30 year fixed rate loan. He would have been happy and I would have earned a commission. But his index is the one year Treasury and that rate today is only 2.18% and my clients margin is 2.75% which means he will reset to 4.93% and his rate will go down for the next year. This loan is just over $600,000 and that means each percentage is $6,000 a year.

The best 30 year loan he could get today would increase his interest cost by more than $9,000 a year. Of course eventually the Treasury rate will go up but for right now it is too costly to consider. This is a smart person but my guess is that 95% of the clients don't know how to read the promissory notes and to determine what is going to happen on the adjustable rate loans that become fixed.

It is easy to spin any situation and I easily could have written a new loan but I try to put myself into my clients shoes and do for them what I would do for me.....darn it, sometimes I wish I weren't so honest but I have to live with myself.