laughing through the pain

I have heard many times the adage that many a comedian became a funny man or woman because of painful experiences. Well, it seems to continue to have a grain of truth after watching this video of Molly Shannon – funny woman from SNL. A contributor on my own blog had posted info on September as Life Insurance Awareness Month and he had the link to Molly’s piece as part of it. I had no idea that she had suffered such an awful experience as a child. As a professional that has always promoted overall financial planning savvy and long-term planning to clients over the years the reminder of life insurance is a good one. Just like you insure your home, its contents, and your car – you should insure yourself if you have dependents or to make sure your heirs aren’t left holding the financial bag for you after your demise, be it untimely one or after a long good life.

Perspectives: Is this a former loan officer or a customer of a LO/subprime lender?

Evidently, this is circulating in e-mails everywhere. Depending upon your perspective it could be funny or not so funny. On the one hand it could be a former employee of a defunct sub-prime lender or it could be a customer with a toxic loan. Either way this evokes a lot of different views.

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The Pre-Payment Penalty: Gold mine or equity Quicksand?

Ninety-one year old Seattle woman’s mortgage mess as detailed by the NY Times.

“……That was the case for Gertrude Robertson, a 91-year-old widow and nurse’s aide living in Seattle who took out an adjustable-rate mortgage of $450,000 in January. Even at her age, Mrs. Robertson was earning $3,500 a month, largely by caring for another elderly woman. Then the woman died. Mrs. Robertson’s income was reduced to her monthly Social Security payment of $1,500. Meanwhile, her loan ballooned to $475,000. Unable to make the payments, Mrs. Robertson is listing her home for $510,000.”

Mrs. Robertson’s pre-payment penalty was $14,400.00. We have seen pre-payment penalties slightly higher than this paid out through our escrow office. I think there are many cases where consumers really don’t understand what they are signing. My wife Lynlee and I argued about this pretty robustly this morning. Lynlee contends that people should know what they are signing and if they are uncomfortable for any reason, they should not sign or at least consult an attorney or other party to help them understand the documents. She argues that if people get in trouble with loans they should not blame the loan officers or anyone else but themselves.

I don’t think Lynlee and I will agree on this issue. I think she is very naiive about why pre-payment penalties were so widely used. I think there are a lot more pressures to consumers and it leads them to make decisions that are not necessarily wise. How many Gertrude’s are out there? Thousands.

Update :  the New York Times Article was available through the link earlier this morning, but as of 9:50am it has been archived and you have to  log-in to access it.  Sorry about that.

Hey Zillow! Yeah, you have fun, but do you have a George Foreman Grill?

Zillow may have fun playing around in the office, but unless you have a George Foreman Grill in your office….

 
 

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Sammy, our senior closer and LPO, shows her skills of fine grilling. And, can any Zillow folks run a John Deere excavator as Lynlee shows? (and yes, she can run it)

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Rules for Rain City Guide Contributors

I’ve never been one for rules, but in preparing to take on a new RCG contributor, I thought it might be a good time to articulate some of the informal rules that we seem to have developed on the site in order to bring together such an interesting crew (often with competing interests!) 🙂

But first… Let’s be clear that there are no formal rules. And I definitely enjoy watching contributors “break” the unwritten rules because they almost always get immediate (and rarely pleasant) feedback from the community.

Here are the only two “rules” that come to mind:

  1. If you are going to attack something… attack ideas, not people. (i.e. “your idea sucks”… not “you suck”)
  2. Avoid obvious self-promotion.

The first rule is just a modified version of a rule from my mother with regards to the way I needed to treat my little sisters… (I was allowed to say to them “you did a bad thing”… but never “you are a bad person”). It’s pretty simple advice that I inevitably regret when I forget to obey.

An interesting related piece of advice from my mother is that I was never allowed to say “no” to my younger sisters, but rather I always had to say “instead”, as in “instead of playing with that, here is a toy you’ll find interesting.” Combine those two bits of advice and you get the essence of good blogging: Passionate challenging of ideas while providing interesting solutions.

The second rule is much more art than science and I can’t blame new bloggers for crossing the line on this too often. Obvious self-promotion looks bad and is an real turn-off for most consumers. I’m a huge believer in treating my readers like they are intelligent and savvy enough to know that the typical professional is blogging in order to earn business. If the consumer likes your attitude and style, they will choose you when looking for an professional without the need to constantly prompt them. One of the reasons I put all the contact information for active contributors on the sidepanel is because I think it is classier if I do the promotion for the contributors than if they try to do it for themselves… 😉

By the way, one trick I recommend for new real estate agents to help stay away from the self-promotion angle is to make sure there is always at least one link in their posts that references an idea of someone else. The link could be to a news article, but preferably it is another blog post. (A ton of credit for promoting this idea goes to Greg as I’m not sure I would have realized this advice was novel without his encouragement…)

Linking does two things: 1) It adds credibility to your post because it demonstrates that you’re knowledgeable and follow many different real estate discussions and 2) it ensures that you’re part of the larger “real estate” conversation on the web.

This seems like a great topic to turn back on the community. Are these two “rules” sufficient to run a community? Are there other “rules” I encourage/enforce without realizing it? I would definitely enjoy everyone’s feedback! (but remember to attack my ideas and not me or I’ll delete your comment! LOL!)

UPDATE
Rhonda reminded me of a third “rule” I advice to new bloggers. I also request that contributors DO NOT post the same article on their blogs. This has two purposes: 1) It helps ensure that the articles they are writing are relevant to the RCG audience and 2) the duplicate posts are extremely bad SEO for the contributor’s website (There’s a long history behind this as more than one RCG contributor has temporarily lost all Google traffic to their personal blog after republishing all their RCG articles… The search engines, and Google in particular, hate this duplicate content and end up temporarily banning the agent’s site).

A tribute and salute to the guys at Firehouse 10 in NYC.

On August 17, 2007, at about 11:15 pm, a couple firefighters doing maintenance on the outside of their station were kind enough to escort me inside their station to view their memorial at Firehouse 10. “House 10” as they call it, is literally 40 feet across the street from the former Twin Towers and was obviously among the very first to respond. To all those in the past and future who sacrifice to protect and serve our communities, small towns, big cities and country, thanks. The caption reads, “Ten House Bravest.”
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Note: the firefighters were very clear that I could not take a photo of the memorial with me or anyone “in the picture.” It could only be of the memorial itself.

September 11, Neighborhood Round-up begins with a West Seattle Tribute to Freedom….

…Alki unveils its Lady Liberty so reveals West Seattle Blog

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Personal remembrance of things past…Pike Place Market, circa 1923, via Alki.  Always a wonderful surprise at Beach Drive Blog when one of these is caught on digital.   

Ballard Avenue compares the “Bootylicious” quotient of an Olympic Sculpture.  Issaquah Undressed and ART.  

The Wedgwood Blog ponders “weighty” sidewalk issues in a “healthy” debate.   NIMFY musings At Large in Ballard

Urban fruit harvest time!  Capitol Hill Seattle reminds us the proper harvest “ratio” for the annual bounty.  Bento Box tip at Broadway Seattle . 

Captain Columbia City and the cinema….On again/ off again the wagon at Kirkland Weblog

  Red Brick Blog in Issaquah wonders “Y” for fun.  First Day of School in Sammamishmash 

Miller Park Neighborhood  wins for BEST headline…”Storm in a D-Cup”!

Buyer Beware – Seller/Seller Contracts

[photopress:seller_seller.jpg,full,alignright]Who represents you, the seller?  Who represents you, the buyer?  Does anyone represent you at all?

Because of all the rhetoric regarding “the evils of Dual Agency”, many buyer consumers are not represented at all in the purchase of a home.  How being represented “in part” became worse than being represented “not at all”, I’m not sure.

This is particularly sad in the State of Washington, as we are the ONLY State to the best of my knowledge, that affords buyer consumers full and equal representation to that of the seller, as the default of our laws.  To see the State trying to insure full representation for all buyers, and then see common practice and other forces flipping that to Zero, Zilch, NONE and No Representation, is clearly a soapbox of mine.

That is not to say that a buyer cannot choose to represent himself, in whole or in part, and possibly reap some monetary benefits when doing so.  As long as that buyer consumer undertands the responsibilities he is taking upon himself, and clearly understands that they are not being represented by anyone except themselves.

Caveat Emptor does not exist in real estate in the State of Washington, unless the buyer CHOOSES it.

PLEASE LOOK VERY CLOSELY AT THE PORTION OF PAGE ONE OF THE PURCHASE AND SALE CONTRACT ABOVE.

Many consumers erroneously get the message that they are “represented”, at least in part, by seeing the same Company and Agent’s name and information on both sides of the signature portions at the bottom. This is NOT the case.

Who represents whom is noted in item #15 “Agency Disclosure”.  If SELLER is checked BOTH times, the agent on both sides at the bottom represents the SELLER at ALL times and the buyer never, leaving the buyer totally unrepresented in the real estate transaction.  Again, nothing wrong with this IF the buyer CHOOSES it.  But all too often the buyer sees an agent name and a company name underneath where they are signing, and erroneously comes to the visual conclusion that they are represented by the agent whose name and contact info appear under their signature.

If line 15. is checked SELLER where it indicates “selling licensee represents”, then the agent whose name appears twice, represents the SELLER with every word spoken to you, and every time he or she is “assisting” you with your duties under the sales contract.

When you ask how much the Earnest Money is…the answer will be the Seller’s best answer.  When you ask any question regarding the contract blanks or any question regarding how to proceed to fill out the contract and proceed to closing, the answer will be the BEST answer from the standpoint of the SELLER and not you, the buyer.  As long as you understand this, there is nothing wrong with SELLER/SELLER contracts.

This blog post is to help insure that buyer consumers look in the correct place when trying to determine whether or not they are represented, and where to get advices regarding the purchase of their home.  Single Agency protects the agent better, but leaves someone high and dry.  That’s OK, as long as the buyer knows not to put out their hand for a step down or ask for a drink of water from…the agent for the SELLER.

I would say this works in reverse for a For Sale By Owner, except, as you can readily see, the NWMLS contract provides no check block for the seller to be totally unrepresented.  The contract would have to be modified, with the permission of NWMLS, to use this standard form for a property not listed in the NWMLS by a member of the NWMLS. 

This is a public service announcement 🙂

Sunday Fun: Self-Importance Test…

I saw the great results that Matt ended up with in taking the Technosailor Self Importance Test, and had to give it a try… Turns out I’m most like Chris Pirillo… 🙂

The result is fascinating in that it is somewhat like reading a horoscope…

You are most like Chris Pirillo. You dominate your brand and do quite well in marketing it. However, you go out of the way to place the focus on other people as much as possible as a decision on power and authority. You may have many followers, readers or fans but you rarely let this distract you from your mission and focus.

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