Real Estate Q & A...play it again, Sam!

Real Estate Q & A

Here's a letter received from a friend on July 26, 2009, asking advice about refinancing. If you've got a real estate question, please send them my way. It's fun to help friends with real estate questions!

Q...

Dear Jeanie, After we spoke yesterday, I thought of you concerning a situation I have. Long story short, I need to refinance my house...very small mortgage, but due to late and slow payment (over the last three years) and the amount of requested mortgage (25k)being so small I'm having trouble. Been everywhere I can find online. Been completely current (and on time) for past three months but "X Bank" will not refinance for another 9 months. My payoff is around 18K with no 2nds , leins or anything (totally clear), no repos, no forclosures, no bankruptcy.

The house would appraise between 150K and 200K. I was not aware, but my ex-wife is still on this note and I need to get her off. When we divorced, this was something that was never taken care of. I had thought with a "quit claim" which she signed, our bank would have automatically taken her off....but that was not the case. I just found out about this 4 or 5 months ago and only now have time to take care of this. Another option I am considering is selling with owner financing. My tennant is interested and I do not want any large sums available to me at this time. Give me your thoughts on this. If you know a lender who might be interested or could help (steer me in the right direction), please let me know or put them in touch with me.

Thanks, James

A...

Dear James,

First of all, never, ever, ever...go online to look for a loan. They just don't happen. Or, if they do, you get screwed royally with fees, fees and more fees.

Go to a local bank who holds their OWN loans in-house (doesn't sell to Freddy Mac or Fannie Mae); i.e. here in New Orleans, there are hundreds of mortgage brokers and about 20 good banks with branches here (hundreds of branches). All of these banks/brokers originate loans, then sell them to private investors or the government (Fannie Mae or Freddie Mac). There are two mortgage companies here in town who 'hold their own paper' (underwrite their own loans and don't sell them to investors or the government). They are Standard Mortgage and CMC Mortgage Company. I like to use them because I know the people who are making the decisions on my clients' loans. (The other mortgage brokers have to answer to someone in Milwaukee, or NYC, or whereever the investor group might be)Additionally, the big local banks give all kinds of business and personal loans, including lines of credits to their good customers, which they hold their on paper own....or finance "in house". This is the type of loan you want.

Forget "refinancing" $18,000.Just get a LOAN, a personal loan or an Equity Line of Credit. You have enough equity in the house to simply get an Equity Line of Credit. Call your banker in either McComb (where the property is) or Alabama (where you live and bank).They will need your last tax return; perhaps a balance sheet; and you will need to have the house appraised...$300 plus or minus.

They can loan up to 75% of the value of your house. You need far less than this. Go on and set up the line of credit for about $50,000; pay off the $18,000 at X Bank, thereby eliminating any debt you (and your ex-wife!) might have and simply owe the $18,000 on your line of credit. You can pay that off in big lumps, say $1,000 per month, if you're making good money, or smaller amounts if you're having slow months. Line of Credit loans are interest only loans, and the interest rates are so low right now that it'd be nothing! It's renewable every year, though, so you have to go through the process every year. Just try to get it paid off ASAP and always pay some principal in addition to the interest due each month.

Forget X Bank. They got burned badly during the recent crash of the financial markets because they were the world's WORST at lending to SubPrime clients....bad, bad mistake.Go to a strong local bank in either town. Trustmark's in good shape. If Whitney is on the Gulf Coast, they'd be good. X Bank would have been good; it's just that they got slammed last year. Their stock prices are back up a bit now, though, so if you've got a relationship with an officer there, try them.

If not, ask your wealthy friends (locally) who their personal banker is, and if they'd be willing to introduce you to a good one. Open a new checking account and start the process. Find someone you can have a good banking relationship with. Like having a good-friend-lawyer, a good-friend-banker is a good thing to have, too. This will come in handy for the rest of your life.


Regarding selling you property. I'd hold on to it now. We're in a "buyer's market" with many good investment properties being sold at wholesale or below, depending on the area. I'd advise you to hold on to your property until the market turns and we're out of the recession.
I like to buy wholesale and sell retail. Now would be a fantastic time to buy! And I love referrals, so if you or any of your friends agree that now's the best time for buying, give me a call. 504-610-6264.

Your pal,

Jeanie

The Ball and All

Jeanie & Steve at the Blues Ball in Memphis, 2007

I was invited to go to the Blues Ball in Memphis in the spring of 2007 with my friends, Bill and Francine Luckett. They had a table with Delta Magazine publisher, Scott Coopwood and his beautiful wife, Cindy, and editor, Melissa Townsend (one of my favorite Delta girls!) and her husband, Hue. We were at a table with Bill's business partner and best friend, Morgan Freeman, and I think every photographer at the ball, both professional and amateur, came over to get a picture of Morgan. About an hour into the festivities, I noticed a man in black with the most gorgeous woman alive (his wife!), and whispered to Melissa, "Oh my God! There's Steve Cropper!" She (being much younger than I) said, "Who's Steve Cropper?" Well, music fan that I am, it is always my job to share the enthusiasm about the music that I love. So you can Google him, if you don't know...but if you're a huge music fan, like me, you'll already know that Steve Cropper either wrote, or co-wrote some of the most fabulous songs in both soul and rock 'n roll history: Knock on Wood, Midnight Hour, Sittin' on the Dock of the Bay, Green Onions and many, many more.

Steve "The Colonel" Cropper (born October 21, 1941) is a guitarist, songwriter and producer. As part of the Stax Records house band Booker T. & The MG's, he played on hundreds of recordings by Stax artists such as Otis Redding, Sam & Dave, Carla and Rufus Thomas and Johnnie Taylor, also acting as producer on many of these records. He has been described as "probably the best-known soul guitarist in the world" and was ranked #36 on Rolling Stone Magazine's Top 100 Guitarists of All Time.

Anyway, back to the Blues Ball, Melissa "made" me pose with Steve for this picture for Delta magazine. A good time was had by all!

"Play it, Steve!"

Real Estate Q & A

Real Estate Q & A

Here's a letter received from a friend on July 26, 2009, asking advice about refinancing. If you've got a real estate question, please send them my way.

It's fun to help friends with real estate questions!

Q...
Dear Jeanie,

After we spoke yesterday, I thought of you concerning a situation I have.

Long story short, I need to refinance my house...very small mortgage, but due to late and slow payment (over the last three years) and the amount of requested mortgage (25k)being so small I'm having trouble. Been everywhere I can find online. Been completely current (and on time) for past three months but Regions will not refinance for another 9 months. My payoff is around 18K with no 2nds , leins or anything (totally clear), no repos, no forclosures, no bankruptcy.

The house would appraise between 150K and 200K. I was not aware, but my ex-wife is still on this note and I need to get her off. When we divorced, this was something that was never taken care of. I had thought with a "quit claim" which she signed, our bank would have automatically taken her off....but that was not the case. I just found out about this 4 or 5 months ago and only now have time to take care of this.

Another option I am considering is selling with owner financing. My tennant is interested and I do not want any large sums available to me at this time. Give me your thoughts on this. If you know a lender who might be interested or could help (steer me in the right direction), please let me know or put them in touch with me.

Thanks, James


A...

Dear James,

First of all, never, ever, ever...go online to look for a loan. They just don't happen. Or, if they do, you get screwed royally with fees, fees and more fees.

Go to a local bank who holds their OWN loans in-house (doesn't sell to Freddy Mac or Fannie Mae); i.e. here in New Orleans, there are hundreds of mortgage brokers and about 20 good banks with branches here (hundreds of branches). All of these banks/brokers originate loans, then sell them to private investors or the government (Fannie Mae or Freddie Mac). There are two mortgage companies here in town who 'hold their own paper' (underwrite their own loans and don't sell them to investors or the government). They are Standard Mortgage and CMC Mortgage Company. I like to use them because I know the people who are making the decisions on my clients' loans. (The other mortgage brokers have to answer to someone in Milwaukee, or NYC, or whereever the investor group might be)

Additionally, the big local banks give all kinds of business and personal loans, including lines of credits to their good customers, which they hold their on paper own....or finance "in house".

This is the type of loan you want. Forget "refinancing" $18,000.

Just get a LOAN, a personal loan or an Equity Line of Credit.

You have enough equity in the house to simply get an Equity Line of Credit. Call your banker in either McComb (where the property is) or Alabama (where you live and bank).

They will need your last tax return; perhaps a balance sheet; and you will need to have the house appraised...$300 plus or minus.

They can loan up to 75% of the value of your house. You need far less than this. Go on and set up the line of credit for about $50,000; pay off the $18,000 at Regions, thereby eliminating any debt you (and your ex-wife!) might have and simply owe the $18,000 on your line of credit. You can pay that off in big lumps, say $1,000 per month, if you're making good money, or smaller amounts if you're having slow months. Line of Credit loans are interest only loans, and the interest rates are so low right now that it'd be nothing! It's renewable every year, though, so you have to go through the process every year. Just try to get it paid off ASAP and always pay some principal in addition to the interest due each month.

Forget X Bank. They got burned badly during the recent crash of the financial markets because they were the world's WORST at lending to SubPrime clients....bad, bad mistake.

Go to a strong local bank in either town. Trustmark's in good shape. If Whitney is on the Gulf Coast, they'd be good. X Bank would have been good; it's just that they got slammed last year. Their stock prices are back up a bit now, though, so if you've got a relationship with an officer there, try them.

If not, ask your wealthy friends (locally) who their personal banker is, and if they'd be willing to introduce you to a good one. Open a new checking account and start the process. Find someone you can have a good banking relationship with. Like having a good-friend-lawyer, a good-friend-banker is a good thing to have, too. This will come in handy for the rest of your life.

Regarding selling you property. I'd hold on to it now. We're in a "buyer's market" with many good investment properties being sold at wholesale or below, depending on the area. I'd advise you to hold on to your property until the market turns and we're out of the recession.

I like to buy wholesale and sell retail. Now would be a fantastic time to buy! And I love referrals, so if you or any of your friends agree that now's the best time for buying, give me a call. 504-610-6264.

Jeanie

3725 Napoleon Avenue Open House Sunday 4 to 6

Mediterranean Oasis $429,000

You're invited to view this historic property on Sunday, July 26 from 4 to 6

Just minutes from the CBD in Uptown's Broadmoor Historic neighborhood, this property is situated on a key lot with side yard meditation garden and tropical landscaping, a great pool, a 2-car garage (with parking for four more cars in long driveway and offstreet parking space for guests in front) and loggia.

Inside, you'll find elegant and spacious rooms with many luxuries such as marble countertops, French windows, a whirlpool tub and original tile shower with 7 showerheads, numerous walk-in closets and custom murals. Crystal chandeliers and beautiful silk draperies are included in the sale.

There are an additional 3,117 square feet in a fantastic and partially finished-out basement with ceilings taller than a stretched out arm, which could be used for storage or recreation immediately or would be perfect for an apartment upgrade to bring in additional revenue.

Please tell any friends you might have who are looking to purchase a fine family home Uptown to call me for details. 504-610-6264. I can show it any time!

320 Exchange Place Open House from 12 to 2

The Open House at 320 Exchange Place, Unit # 8, will be held from 12 to 2 on Sunday, July 26

Open House, Sunday, July 26, from 2 to 4

Please join Jeanie on Sunday, July 26, from 2 to 4, for an Open House

946 Burgundy, in the French Quarter, New Orleans

$240,000

1 bedroom, 1 bath

150 year old gorgeous building with new everything!

Join Jeanie at one of her Open Houses Sunday July 26

Join Jeanie on Sunday, July 26, 2009 for an Open House

at 320 Exchange Place, Unit Number 8

$349,000

Fabulous condo on private street boasts every amenity!