Welcome to The Woodlands Real Estate Voice

"The Woodlands" by Lubomira Soroko posted on Google Earth

The Woodlands Real Estate Voice is a collaboration of voices from the The Woodlands real estate market. Please subscribe by email and read daily posts about local real estate matters and experiences.  We invite you to join the conversation by making comments on posts and sharing your voice.

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The Mortgage Market Guide by Sue Izard of Woodforest Mortgage- The Woodlands TX

Last Week in Review

 

 

“What happens in Washington doesn’t stay in Washington.” And that was especially true last week, as the effect of Congress’ actions regarding the U.S. automakers rippled out into the markets. Bonds and home loan rates spent last week testing their previous best levels of 2008, and finally rallied on Friday to reach their best levels not just of 2008 but of the last five years. Stocks, meanwhile, were under pressure throughout the week waiting to see whether Congress would approve emergency loans for GM and Chrysler. While the House of Representatives approved the measure Wednesday evening, the Senate rejected the $14 billion bailout for the US automakers on Thursday evening, citing a lack of wage concessions by the United Auto Workers (UAW). Friday, the White House announced that the government may be willing to use Troubled Assets Relief Program (TARP) funds to prevent an immediate collapse of the auto industry. One thing we can be sure of in this matter is that the volatility for both Stocks and Bonds will continue while this issue remains unresolved.

Buyers and Sellers…who is insured and why by Scott Jones with First American Title

Title insurance has become an important necessity do to the high risk involved in buying, selling or financing real property. The policy is insured at the date of transfer of the property from one party to the other for the cost of a one time premium charge set by the Texas Department of Insurance (TDI). It is valid from that point until the property again changes ownership.

While there should be no risks in transferring property, risks do exist. Many “hidden” hazards to property ownership may show up unexpectedly in connection with the property. Any one of them could mean a costly loss or require time consuming hours to clear. Title insurance protects the buyer from damages and expenses incurred because of these possible defects. The policy also protects the seller as to warranties and representation make at the conveyance of the property. The following are a few examples of hidden problems:

Closing your Real Estate transactions-The Woodlands, TX

Prior to the actual closing day, there are several things you should do to be certain that your real estate transaction will close on time, and that everything will go smoothly. When you receive the final closing statement or HUD, you should go over all the calculations to be certain that your clients are given credit for all there deposits and any other credits due to them. Go over the entire lender and title fees to be sure they are what you have been quoted and that you agreed to. Check the math calculations on the closing statement. Errors do occur.

Carefully review the guarantee of title insurance, to verify the exact legal description of the property and any liens, encumbrances or other items, which may have been discovered on the property.  Verify that title has the correct vesting, or the way your clients want to take title on the property. This is important because to correct a vesting on a deed later on is time consuming and can be avoided if care is taken prior to closing.

Wamu Cares – Apparently Not Anymore

Who is answering the Wamu Cares number at 3 in the afternoon? Nobody.

A couple of weeks ago, I wrote a post about the Wamu Cares program launched by Washington Mutual to engage with their borrowers who are either in trouble or facing trouble.  I was impressed by their new website at www.wamucares.com that spoke in simple language about their commitment to working with their borrowers who are in trouble.

Well, that didn’t last very long.  www.wamucares.com is gone and now forwards to minor page off of their contact us page.  This page has dropped all of the sincere language about wanting to help and now lists different options for the various levels of pain that their borrowers are in.  OK, so less fluff and more substance?  Unfortunately not. 

Politics and The Woodlands Real Estate Market

Tax and Politics and The Woodlands Real Estate

With the changing of the party of in power will come a change in tax policy so how will his affect The Woodlands real estate market?  Please understand that there’s no judgment coming from this real estate guy, only curiosity. 

President Elect Obama has campaigned on raising the capital gains tax rate so we can expect that this will happen shortly after his election.  I think this will have a direct impact on Woodlands real estate market and it will be a good thing.

 

Real Estate Foreclosures in The Woodlands area

Can you create wealth by purchasing foreclosures in this market?

My answer is an unequivocal “YES”!

I watched investors snatch up foreclosure bargains in the 1980’s that resulted in millions of dollars in profit within 20 years…all while their tenants were paying down their mortgages.

Today, things are quite different – both in the underwriting of investor mortgages and in the availability of good cash-flow properties.  But with the collaboration of an agent experienced in the needs of an investor, there is still a lot of money to be made by investing in foreclosures.

The Woodlands United Methodist Church

The Woodlands United Methodist Church

My family has visited The Woodlands United Methodist Church for the past couple of Sundays and it is truly impressive organization.  I grew up in army base chapels around the world and my wife was raised Catholic.  For both of us, this is the first experience in a large community church like United Methodist.

So far, we are very impressed. The church has a tone and culture that is welcoming, serious, and casual all at the same time.  Everyone from the church staff to the volunteers who run child classes during the sermons are so nice, warm and professional. 

Coulson Tough Elementary School – The Woodlands

Coulson Tough Elementary

My son Jack has had his first week as a kindergartner in Coulson Tough Elementary that is located in Sterling Ridge in The Woodlands.  The experience has been great so far.  Of course my wife Sharon is not too thrilled about the long drop off and pick up lines. They have it organized very well like a well-managed Sonic but we haven’t the “sweet spot” in terms of the best time to show up.  If you show up too early, and your kid is not waiting outside, then you have to do the lap of shame like at the airport and get to the back of the line. If you time it too late, then you’re definitely waiting. 

Wamu Cares about The Woodlands… we’ll see

Washington Mutual brings the love

Realtors all have their favorite “types” of transactions.  Some love helping buyers scour the town and find that perfect place. Some love marketing listings to help sellers move on with their lives.  I don’t know too many Realtors who really love working on transactions that involve a seller who is either in foreclosure or heading that way. 

Of course there is that special satisfaction of really helping someone who really needs professional-level assistance but these deals are painful.  I am not talking about the emotions and financial stress that the Realtor assumes; I am talking about working with mortgage banks who hold the distressed mortgage. 

If you have never been involved in a “short sale” real estate transaction or known someone who has, then you probably assume that a mortgage bank would be extremely cooperative and diligent when given the option of working out a deal that would save them from expensive foreclosure actions and owning another home they do not want to own.  Yes, you would assume that wouldn’t you…. but you would be very, very wrong.

Kevin Cornwell – The Woodlands Mortgage Pro (and Golf Pro)

Kevin Cornwell – The Tiger Woods of The Woodlands Mortgages

The Woodlands Real Estate Voice  welcomes Kevin Cornwell as a new contributor.  Kevin is a 8-year mortgage veteran, and an Executive Mortgage Banker with Leader One Financial in The Woodlands.  His office is at 4810 W. Panther Creek.

You may recognize Kevin from The Woodlands golf courses as he was a PGA golf pro at The Woodlands Country Club several years ago.  He is originally from Washington State which is where he began his mortgage career. 

Welcome to The Woodlands Garden District

East Shore – The Garden District of The Woodlands

Located within Town Center of The Woodlands is a new community that offers a prestigious address and archetecture that is unique and special.  Far from the ordinary, these homes are designed for those with discriminating taste and ultimate convenience.

Happy Columbus Day!!!

 

Twenty years from now you will be more disappointed

by the things you didn’t do than by the ones you did. 

So throw off the bowlines.  Sail away from the safe harbor. 

Catch the trade winds in your sails.  Explore. Dream. Discover.

                      - Mark Twain

 

I hope today is filled with the peace and appreciation you feel for the opportunities that are a part of today’s American life…particularly in The Woodlands.

We are so very blessed in this area.  In spite of the ugly news that hits us in the face every day…when we really think about it, we are in a wonderful place…economically and experientially.

If you find yourself being taken in by all the bad news, take a little wisdom from Mark Twain (see quote above) and Tony Robbins.  In Tony’s new website, he explains how to survive this “Winter” in our economic times. 

Here are a few things that I learned from him:

The Woodlands Moving Tips

Do not hire these movers

Whether you are moving from one home in The Woodlands to another or crossing state lines, moving is a stressful.  Here are some lessons learned that can minimize the stress, spousal arguments, and budget breakers. 

1. Get property insurance prior to your move. Also called “renters insurance,” it is very inexpensive and goes well-beyond the coverages you probably have in your home-owner’s insurance policy.  Whereas your home-owner’s policy will not cover moves at all, a renter’s policy protects your stuff no matter where it is.  Movers are regulated by the government and they all provide a default coverage of 60 cents per pound which is nothing! Imagine if your grandmother’s dining room table is broken in half during a move and because it weighs 50 pounds, you get a check for under $40! 

Make “boatloads” of money

You can “Make Bank” on the current economic crisis

There are some advantages in being a seasoned real estate agent.  Sure, I struggle much more with the techie part of today’s profession.  But the experience of being in this business for several decades brings about a confidence that comes from observation.

As I mentioned in my post yesterday, the current crisis has many similar characteristics to the economic challenges of the 1980’s.  Not only did we have a rapid 20% reduction in stock values, but the Houston/Woodlands area was suffering from an “oil-bust”.  Layoffs were common among the largest sector of the area’s economy AND the Savings and Loans were failing on a regular basis.

But there were a group of people who made a huge amount of money from that decade.  They were not big “wheeler and dealers” with huge sums of money already.  They were people like you and me that saw an opportunity and had the intestinal fortitude to move forward in a way that has changed their lives.

Now is the time to follow their lead and reap enormous financial rewards

The FHA Loan in The Woodlands – Important Changes

The FHA loan is a type of home loan insured by the federal government Department of Housing and Urban Development (HUD).  FHA loan stands for “Federal Housing Administration” which is an agency under HUD.

The FHA loan is special because it is insured by the FHA and designed for home buyers who typically cannot qualify for a regular loan (conventional loan as they call it) from your neighborhood bank or mortgage company. The FHA does not lend the money but it provides lenders an insurance policy so that if the borrower forecloses on the loan, the lender will be made whole by the FHA.  The FHA doesn’t actually give the loans, they just offer the loan requirements and insurance policy that makes the loan possible.  Without that insurance, no lender would ever provide a mortgage with such risky requirements: low down payment, great interest rate, it is assumable, lower credit score requirements, etc.

FHA has just announced some important changes that will affect borrowers who want to use the FHA loan in The Woodlands.  Here are the changes –