Bill Black CMP, CDPE

Comment history

Clark County home values tumble

A home is a shelter.... not an investment and we all need shelter.The open bar has been closed for over three years and we are going through the HANGOVER period. This time will be one of learning for many that there is no such thing as a free lunch.

May 12, 2011 at 10:33 p.m. ( | suggest removal )

DefaultSolutions

Just amazed at finding that the banks are now lobbying to remove borrowers right of rescission on refinance transactions just to cover their butts.

December 20, 2010 at 1:28 p.m. ( | suggest removal )

Bank of America’s tax letter misses its mark

Terrell Wilson... the same Terrell Wilson that is tied to- http://web.co.orange.nc.us/RODinquiry...

In which "LaSalle Bank, which was once the wholesale lending arm of ABN Amro and for a time included the US ABN Amro Mortgage division, was sold to Bank of America in October of 2007. Today, Bank of America own LaSalle Bank, and Citigroup owns what used to be ABN Amro Mortgage.

You also just posted http://www.chicagonow.com/blogs/the-c... that you got a 2.891%

Please either be ready to show a closed HUD with your transaction on it or leave our community as you have caused enough damage from the first loan you ever originated I am sure.

December 20, 2010 at 12:46 p.m. ( | suggest removal )

Homes-for-sale supply increases on weaker demand

I know that financing is getting harder and harder everyday as Fannie, Freddie and FHA loans default. Once they audit these files and find the gaps- they try to put in new layers of rules to offset and the slippery slopes continue in value due to lack of eligible buyers.

December 17, 2010 at 12:32 a.m. ( | suggest removal )

Foreclosures dip in Clark County in Nov.

It's the holiday season and this may be the year we all take some time and watch "It's a Wonderful Life"- I will leave you a quote from this 1946 film-

**George Bailey:** *Just a minute - just a minute. Now, hold on, Mr. Potter. You're right when you say my father was no businessman. I know that. Why he ever started this cheap, penny-ante Building and Loan, I'll never know. But neither you nor anyone else can say anything against his character, because his whole life was - why, in the twenty-five years since he and Uncle Billy started this thing, he never once thought of himself. Isn't that right, Uncle Billy? He didn't save enough money to send Harry to school, let alone me. But he did help a few people get out of your slums, Mr. Potter, and what's wrong with that? Why - here, you're all businessmen here. Doesn't it make them better citizens? Doesn't it make them better customers? You - you said - what'd you say a minute ago? They had to wait and save their money before they even ought to think of a decent home. Wait? Wait for what? Until their children grow up and leave them? Until they're so old and broken down that they... Do you know how long it takes a working man to save five thousand dollars? Just remember this, Mr. Potter, that this rabble you're talking about... they do most of the working and paying and living and dying in this community. Well, is it too much to have them work and pay and live and die in a couple of decent rooms and a bath? Anyway, my father didn't think so. People were human beings to him. But to you, a warped, frustrated old man, they're cattle. Well, in my book he died a much richer man than you'll ever be.*

December 17, 2010 at 12:15 a.m. ( | suggest removal )

Foreclosures dip in Clark County in Nov.

I was on a conference call this last week with B of a, Wells and Chase loss mitigation department leaders as they were sharing status of the industry as well as to share a forecast of what to expect in 2011. Bottom line-more foreclosures.

The good news is that they are implementing new automation that is improving the qualification process for modifications as well as streamlining procedures to implement foreclosure reductions. Fannie Mae announced Monday that a Foreclosure now must wait Seven years to borrow again but if you do the alternative and short sale its as soon as three years and possibly two with compensating factors.

I like to use metaphors so here is mine in contrast to the overall madness of this era-

Parents (*Federal Government*) of a group of Teenagers (*Nation*) were enticed to a summer vacation that included VIP status at all the world renowned places with no limits of spending money, rules or limits on debauchery- a PARTY like no comparison.

The catch was they couldn't set limits on the Teenagers either that were on the fence of responsibility due to limited focus on saving, investing, borrowing and the lack of what "compound interest meant" not just in savings but in borrowing on credit.... I mean your only as smart as your teacher right?

So the Summer of immoral self indulgence (*lack of oversight on banking and investment "ponzi" schemes right under the noses of offical's aka Bernie Madhoff*)comes to an end and they are welcomed home to a world turned upside down(Mortgage Meltdown-2007)empty bank accounts, broken heirlooms, depressed teenagers ....***THE HANGOVER.***

So to this era I call it "THE HANGOVER". It's time for rehab- rehab comes from the community, from our family and from taking the time to learn about your finances. The carrot was dangled over many heads (*100% Financing- Cheaper to buy then rent)* with the expectation it was the American way... our nation is now questioning what the "American Way" really is....

"The American Dream was to own a home- The American Nightmare is to now lose a home."

This is damaging to our community, the generation of innocent children that has had to see their parents lose their jobs, their homes, their life as they once knew it.... the same time that B of A made net profit of 3.1B in a quarter- yes a BILLION dollars net profit a month as our communities crumble. Something is wrong with that picture-

December 17, 2010 at 12:14 a.m. ( | suggest removal )

County home foreclosures surge, likely to be high for months, years

I have clients who have endured the American Dream- now they are experiencing the American Nightmare. Banks are no longer getting "creative" to fix the problem as they can no longer profit. We help create a default solution at The Law offices of Robert Russell- www.nwsn.com (my plug for the day)

I also have clients that had an opportunity of a lifetime when the bar was lowered and to this day have stayed current, employed and living in a house they paid $200,000 for and its worth $165K today. I try to help explain- if you are not selling the value doesn't matter.

The lowering of the bar created the demand in our market that created the bubble of wealth- Greed is the 5 letter word that I feel caused WAY more lack of oversight and the constant tweaking of the American Dream that was turned into the American Nightmare for some.

Things will improve- the good thing is that more people are paying attention to what they are signing, bigger is not always better, and thrift shopping is becoming the "in" thing to do.

Your Mortgage Planning Expert,

Bill C. Black CMP, CDPE

September 21, 2010 at 9:34 a.m. ( | suggest removal )

County home foreclosures surge, likely to be high for months, years

Very insightful comments- thanks E_terrific for the insight on "mature economy".... I think I will be using that today at a presentation for a group we work with on Short Sales.

I was involved in the lending side of things when Wall Street continued to manipulate the "American Dream" by taking these individual mortgages and pooling them together and "securitizing" them- hedging on the bad loans and selling insurance on the premium loans... being able to call them AAA rated bonds due to the fact that limited default was occurring based off supply and demand- creating up to 20% appreciation in areas. As long as less then 2% of a portfolio defaulted the AAA rating continued to demand investors feeding the profit frenzy.

Making promises to foreign countries such as Netherlands, our 401K portfolio managers, individual retirement accounts, and investors abroad on the "potential" of return on these 2 or 3 year loans that are forced to have a prepay penalty and then after that they have an increase in return as the loan adjusts. This was the gamble- the return out weighed the risk of the dreaded words "housing bubble".

Investors demanded more- the fund managers get creative and lower bar but get creative with it.

Here's how it worked- a $100M dollar portfolio was analyzed- meaning to sort through and make "pools within a pool" of the "most likely to fail" loans or the 500-620 credit scores that were VERY RISKY so instead of a 6% return they only take a 5% and use the other 1% income to "insure" these for a 20% insurance policy from the lovely AIG. So if you have a $50M pool of garbage you have insurance covering the first $10M of default. AIG was bailed out by the government to cover this.

The other half of this portfolio is the premium pool and they actually offered another form of an investment strategy on these- allowing people to "hedge" the portion of a "subprime" portfolio.

Profit on the first portion of failed loans and profit on the hand picked successful loans with an incentive as they offered insurance on these.

So as this was going on they continued to lower the bar on lending- more investors were drinking the Kool-Aid so your Morgan Stanley's of the world needed more loans to manipulate- how do you get more loans- lower the bar.

This is where we went down to a 575 credit score- 100% financing. The demand on Wall Street for profit created this mess of allowing people that should have never been approved. They would just put it in the "bad pool" insure it and limit the loss.

Continued.....

September 21, 2010 at 9:33 a.m. ( | suggest removal )

cjoner

Cami,
Did that conversation we had yesterday make it to print?

September 16, 2010 at 3:19 p.m. ( | suggest removal )

DefaultSolutions

Just went "paperless" for my daily reading of the Columbian.

September 16, 2010 at 3:13 p.m. ( | suggest removal )