Real Estate Realities



Let’s be frank. Real estate brings out the stupid in everyone. Six years ago, for the first time in most of our lifetimes, our economy was nearly destroyed because of the dumb practices and stupid decisions of a lot of people. Yes, most of those decisions were made by government officials and bankers. But the worst were made by Main Street consumers.

This isn’t because most people are stupid or incompetent or greedy. It’s because the real estate world has its own reality.

Why isn’t your town-home appreciating at the 7 to 14% rate everyone else is seeing? I don’t know—it’s just a real estate reality.

How come an individual who goes bankrupt and forecloses on a conventional loan can’t find new financing for four years after the face, but the same bankruptcy and foreclosure only limits him to three years on FHA loans and two years on VA loans? I don’t know—it’s just a real estate reality.

Noticing a pattern?

If you have trouble following the rules of real estate, it’s not because you’re stupid. It’s because you’re unfamiliar with the unique and twisted reality of real estate. And we have a word for individuals like that: real-tards!

If that sounds harsh, or you’re not sure how we got to that word, do me a favor and listen to this broadcast over in the archives. For now, we’re just going to run with it. Which takes us to (drum roll please)…

The Top Five Reasons You Might be a Real-tard

Reason #5. If you make double payments on your mortgage just to get ahead, then you lose your job and become late on your mortgage—you just might be a real-tard.

I hear this situation almost weekly from radio callers. Some individual is being overly diligent and throws extra money at their mortgage to pay it off quicker, then loses his job and ends up being delinquent on his loan or foreclosing entirely.

Why is this indicative of a real-tard? Because only a real-tard could be so diligent in one aspect of his life and completely careless in another. If there is any chance you could lose your job in the near-to-medium term, reducing the term on your mortgage through extra payments is not a priority.

4. If you go to consumer credit counseling to consolidate and pay your bills so your credit gets better—you just might be a real-tard.

These services not only leaves you with debt to pay off, but report on your credit like a chapter 13 bankruptcy.

There are alternatives for dealing with bad financial situations and a lot of debt. For example, you can use the equity in your home to pay off your debt. But before doing anything, give me a call, let me walk you through your options, and even if I can’t help you I can put you in touch with people who can.

3. If you use a USAA or Navy Federal Credit Union real estate agent just to get the rebate they offer—you just might be a real-tard.

The only reason to choose one agent over another is to get the best real estate value possible. You shouldn’t choose an agent because they’re your friend or relative or their company offers rebates. You should choose an agent for their competence. And to be frank, that ain’t the agents at USAA or NFCU.

But if the rebate is just that important, many local real estate agents—four that I know personally—offer USAA and NFCU-type rebates.

2. If you feel compelled to initiate, and feel justified in doing, a loan modification just because your neighbor has a lower rate that you—your just might be a real-tard.

Imagine buying a car, then three years later finding you’re neighbor bought the same car for a cheaper price, then going to the dealership and demanding a rebate. Sound stupid? It is! So why is it any less stupid doing this with your mortgage?

Loan modifications are not there to lower your payment just because lower payments are nice. That’s why God made refinances. Loan modifications are drastic options to be used only if you’re suffering severe financial hardship that makes paying your mortgage impossible.

1. If you purchase multiple single wide trailers on separate properties using hard money at 18%–you just might be a real-tard.

Since 2009, nobody lens on single-wide trailers anymore. You have to have a double-wide and good credit to get financing. A single-wide trailer is nothing but a depreciating asset. It makes no sense getting conventional financing to ‘invest’ in these trailers, let alone financing at 18%. But it happens. Frequently. And often to people new to investing in real estate.

GARVENS GROUP OF CHURCHILL MORTGAGE PROVIDING COLORADO SPRINGS WITH HOME MORTGAGES, VA LOANS, CONVENTIONAL LOANS, AND FHA LOANS
Company NMLS ID # 1591 (www.nmlsconsumeraccess.org); CO–Mortgage Company Registration, Churchill Mortgage Corporation, 104 S Cascade Ave. Ste. 201A, Colorado Springs CO 80903-5102, Tel 888-562-6200, Regulated by the Division of Real Estate
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