Showing posts with label underwater mortgage. Show all posts
Showing posts with label underwater mortgage. Show all posts

Wednesday, December 11, 2013

How to Find Killer Deals, Grow Amazingly Wealthy and Rule The World in 7 Easy Steps.

How to Find Killer Deals, Grow Amazingly Wealthy and Rule The World in 7 Easy Steps.


You’ve heard this pitch before, right? How many seminars and webinars have you attended? How many books and tapes have you purchased? How many pushy telemarketers have you patiently listened to? They all promise a 6 or 7 figure income, almost guaranteed, if you just follow our simple program which can be yours for a paltry fee payable in 6 affordable installments. I remember my irritatingly perceptive teen age daughter remarking to me, “Dad, the people getting rich are the ones selling you those books and CDs.”  Ouch! From the mouth of babes…

So why do we keep looking? Is it an image from a magazine, tall dark ruggedly handsome man in a tux walking casually across the runway from his Mazerati to his private jet, while beautiful women steal furtive, longing glances?  Hello! Don’t let someone else’s marketing define your dreams.

Wouldn't it be better to be happy and productive, get Joey through college, take care of the important people in your life and still have enough to retire in freedom and comfort? This is your life! Enjoy the journey, but pay attention!

Here are 7 steps that will bring you closer to your goals:

  1. Silence the inner critic.
    You know the critic I mean. Those negative thoughts that leap to the forefront of our consciousness every time something doesn’t go as planned. Whether those thoughts tell you that you are stupid, weak, ugly, unlovable or incompetent, they all boil down to, “You’re not good enough, so why try?” They can be paralyzing.
    Recognize these thoughts for what they are. They probably started out as a misguided attempt at self-motivation, but can develop into a debilitating, self-punishing habit. Don’t feel obligated to play back the same negative thoughts and emotions like an old tape loop, over and over, whenever you are not perfect.
    Once you recognize that these thoughts are just an auto responder from the sub-conscious, it puts things in better perspective. Think of those negative thoughts as optional. You don’t have to hit the playback button every time. Honestly, would you ever use the words ugly, stupid or incompetent on a co-worker or a loved one? Why are you using them on yourself? Give yourself a break. None of us are perfect. Settle for being excellent.
  2. Take action..
    I remember many years ago when I was managing several departments in a software company that was being constantly reorganized, my new boss told me to take a “Ready, fire, aim” approach to my job. I was horrified. It might work for Dick Cheney, but not for me. I was sure you were supposed to plan carefully, take all aspects into consideration, and then judiciously make your best decision.
    Looking back, I get the point.. Take action. Test the waters. Get in the game. Move ahead. You can adjust your course as you gain experience.
    You don’t gain experience unless you participate. Nothing gets done without action.
  3. Educate yourself.
    Don’t stop after 1 seminar or 1 book. Keep reading. Keep talking. Keep listening.  Find other people with similar objectives. Find a mentor. Who is already doing what you want to do? Study them. Be an apprentice if you can. Ask questions. Think about what makes sense and what doesn't. Ask more questions. Learn from doing.
  4. Be part of a team.
    No matter how good you are, you can’t do it all. We all have strengths and weaknesses. Focus. Do what you do best. Ally with people who have complementary strengths. Find strategic partners that are good at their job and that treat you well. Avoid anyone that makes you feel “less than.” Keep your ego in check and lead, follow or get out of the way, as the situation demands.
  5.  Be persistent.
    You will make mistakes. You will have setbacks. Things will take longer and cost more than you plan. People that you trust will mislead you. Guaranteed. So get over it and get on with it. Nothing is more important than persistence. Talent is not. There are too many unhappy, unsuccessful people with talent. Intelligence is not. Brilliance is often blinding. Education alone is inadequate. The world is filled with educated derelicts. If you get knocked down nine times, get up ten. Persistence almost guarantees success.
  6. Treat others well.
    Be fair, courteous, generous and loving. Courtesy costs nothing.  A smile or a thank you note can make someone’s day. Don’t give away the farm, but if you possibly can, make sure that people who help you are rewarded. You may need their help again. Love is a funny word. Human beings are social animals, hard wired to bond with each other. Love is the glue.  Don’t over analyze. Just go with it.
  7. Focus on the journey.Every adventure begins with an unlikely hero. In your story, that would be you. It isn’t the pot of gold at the end of the rainbow that makes you successful. The real reward is the person you have become during the journey. If you silence your inner critic, if you move yourself to action, if you are constantly learning and surrounding yourself with good people and if you are doing these things persistently, you are already successful. The outward rewards will be almost anti-climactic. The real reward is the person you have become. This journey, your day to day existence, is really all you have.  Stay alert. Avoid getting trapped in mindless routine. You have one life. Live it like you mean it.

    Mike Young is a Broker Associate working at Thunderbird Real Estate
    (831) 234-1545
    License 00952966
    mike@MikeYoungProperties.com

Wednesday, December 9, 2009

The Underwater Homeowner's Dilemma:

Should I Stay or Should I go?

One out of three homes in California is worth less than the mortgage. We face tough decisions as we come to grips with the worst recession since the 1930s and the housing market at the center of it. Even though foreclosures destroy credit scores many borrowers are considering walking away from their homes. (A short sale may help, see below) It’s a difficult decision. It’s an upside down world. Confusion, anger and denial prevent many from moving forward.

The blame game doesn’t help the situation. Mortgage lenders, the government and borrowers all bear some responsibility. But that is old news. This article is about being proactive. We need to let go of the past, get our eyes off the rear view mirror and on the road ahead.

If you are struggling to make your mortgage payments, watching your reserves dwindle, maybe even borrowing from family or using credit cards to stay current, you need a plan right now.

There are lots of headlines about loan modifications, but unfortunately they only work for a small percentage of homeowners. Even if you are one of the few who qualify, it may not help. 42% of loan modifications offer less than a 10% payment reduction. Only 10% offer any principal reduction. The exception may be Wachovia. (Contact me for more information on Wachovia)

If your mortgage is more than 125% of the value of your home it is in your best interest to investigate a short sale now. (A short sale means selling for less than what is owed on the mortgage.) If you hang on to the house, you hang on to the debt. It will take you 5 to 10 years of paying that over value debt to get back to zero equity. It makes much more financial sense to push the reset button. Sell short now, rent a home and buy again in two years. You reduce your housing costs immediately. You get rid of the crushing debt. You may be able to buy again in two years. Prices will still be relatively low.

Over the past 2 ½ years I have guided many sellers through successful short sales. I won’t lie. It is a pain. It may take 6 months or more to complete the process, but if you can’t afford to stay it is definitely the way to go. There is a much softer hit to your credit score vs. the whammy of foreclosure, consult tax and legal advisors to verify. You avoid the publicity of your home being sold on the court house steps. You have more control of the timing, allowing a more graceful exit. In some cases, the bank will give you moving expenses. The bottom line is you move forward.

Here’s the plan:

1. Consult expert legal and tax advisors. (Contact me for references)

2. Call me to find out how much your home is worth today.

3. If you owe less than 125% of your homes market value, if you want to stay in the home and if you have income to support a mortgage payment that is 80% of what you pay now, pursue a loan modification with your lender.

4. If you owe more than 125% of your home’s value, have income loss, been denied a loan mod, loan mod isn’t helping enough, job loss, divorce, or medical bills it may be time to consider a short sale. Call me to discuss your personal situation.

5. Avoid foreclosure at all costs!

Caution! Short sales are not for everyone. Seek legal and tax advice before proceeding with any options discussed above.

Next weeks topic: "Anatomy of a Short Sale"

Mike Young is a Realtor, MBA and Broker Associate at Thunderbird Real Estate in Capitola, specializing in listing and selling distressed properties in Santa Cruz and Monterey Counties. For questions or more information go to www.mikeyoungproperties.com or contact Mike directly at (831) 234-1545 or mike@mikeyoungproperties.com