This week I just wanted to say a few things about payoffs. As you probably know (or should know), whenever the seller (or borrower in a refinance) has a mortgage on their property, we have to clear that mortgage off of title in order to close the transaction. More often than not, we have to pay the mortgage holder the amount still owed on the underlying note. Once the old lender has been paid they (are supposed to) issue a release which we record so that the next closing attorney will know that the previous mortgage was indeed satisfied and released. In order to know how much to collect at closing, we need a written payoff statement from the old lender.

Payoffs can be tricky for a couple of reasons. First of all, every transaction is different. Some sellers, for example, may have privacy concerns. It must be a little unnerving to get a call from a lawyers office asking you for your social security number and mortgage statement. Some sellers prefer to order the payoff themselves. Most borrowers in a refinance do not have a problem handing over their mortgage statement. They do not have anything left to hide. After all, they have already given blood and a DNA sample just to find out if they qualify. Regardless of who orders the payoff, the most important thing is that everyone involved knows whose ball it is. Don’t be like my beloved Chicago Cubs (who are looking to end a 9 game losing streak tonight) and let the pop fly drop between an outfielder and infielder.

Another thing to consider is the “freshness” of the payoff statement. It is crucial that we collect enough money at closing to cover the total cost of the payoff. That total includes interest, which accrues daily. Since the amount of the payoff changes every day, it is important that the written statement is not stale when the transaction is closed and the funds are available to send to the old lender. As a general rule, all payoffs need to be less than 30 days old. If the closing takes place after the 15th of the month, it is important the statement reflects a payment on the 1st day of that month so that there are no hidden late charges. We also collect an amount that includes interest that accrues up to 7 days past closing so that we can account for the fact that the lender may not receive the payoff check until the next day. Under certain circumstances, we will wire the payoff. Just remember, communication is the key. If we all have a plan and we know who is going to do what and when, the closing process will be just that much smoother.

Where We Live

Now that graduation is in the books, it’s time to start looking at next year. Click here for an article on the costs of college education over the years.

It’s time to buy your house again. Click here to see the latest projections for lending in 2012.

The housing market is heating up in our nation’s capital. Click here for the details.

Of course we have them beat down here in Huntsville.  Those folks up in Virginia nad Maryland just don’t know what they’ve been missing. In case you missed it, here is the great article fromearlier this week about our awesome local real estate market.

If you haven’t already figured out what to do this weekend, click here for a summary of events over the next few days.

The Best Medicine

A husband and wife were driving down a country lane on their way to visit some friends. They came to a muddy patch in the road and the car became bogged. After a few minutes of trying to get the car out by themselves, they saw a young farmer coming down the lane, driving some oxen before him.

The farmer stopped when he saw the couple in trouble and offered to pull the car out of the mud for $50. The husband accepted and minutes later the car was free. The farmer turned to the husband and said, “You know, you’re the tenth car I’ve helped out of the mud today.”

The husband looks around at the fields incredulously and asks the farmer, “When do you have time to plough your land? At night?”

“No,” the young farmer replied seriously, “Night is when I put the water in the hole.”

Video of the Week

Home of the Week

Click me for details!

Does your buyer need a land survey? Well, it depends. Here is the skinny: A land survey, commonly referred to simply as a survey is a report in the form of a map showing the location and dimensions of a parcel land. The map may also show the location of improvements or buildings on the property. A survey is helpful because it will show the boundaries of the subject land and will hopefully match the legal description of record. A survey will also show whether improvements such as driveways, fences, wells or even dwellings encroach over the property lines. In other words, a survey shows you what you are getting in a form that is easy to understand and should give you enough information to determine where your property lines are. Most buyers do not elect to have a survey done prior to purchasing their home. This is because most homes are in a platted subdivision meaning there is already a survey of sorts of record though the plat maps do not show where houses and other improvements are located on their respective lots. Surveys are an added cost and many times, they do not reveal any new information but they sure are nice when you need them. Surveys are helpful when your neighbor wants to put up a fence or when you want to add on to your own home. Food for thought.

Where We Live

Click here for a forecast of the rental market. Partly sunny with a chance of vacancies.

Facebook’s seedy underbelly exposed by none other than the gumshoes at NPR. Click here for details.

It’s going to be back to school for some in Buffalo.  Click here to learn how a local developer is spreading his wings.

Click here for a report on national housing inventory. Things are looking up if you are upside down!

If you are looking for something to do in Huntsville this weekend, click here. I hope it is a good one!

The Best Medicine

A man and a couple of his friends had just finished a round of golf at the country club and they were changing their shoes when a cell phone on the bench rang. The man picked it up and answered it.

“Hi honey,” said the woman on the other end.

“Hi honey,” replied the man.

“I was just calling to tell you about this fur coat I found today. It’s beautiful fox fur and I just love the way it looks on me. It’s on sale too, a real bargain. It’s down to $2000 from $4000. Can I get it?”

The man thought about it for a sec and said, “You’re sure it’s a good deal?”

“Oh yes,” replied the woman.

“Okay then, I guess you can get it,” replied the man.

The woman continued, “Oh, and you know how we’ve been thinking about getting rid of the Lexus and getting a new Jaguar? Well, I went to the dealership today and the guy gave me a real deal. He said he’d lower the price from $50,000 to $35,000 just for me. Can I get it?”

The man thought a little harder and said, “If you’re sure it’s a good deal, then yes, go ahead and get the Jaguar.”

The woman continued again. “Oh, one last thing, honey. Remember that house we saw last month that we really liked, but decided we’d wait and think about? Well, it’s on the market again, so I checked the price. It’s down to $450,000 and I checked with the bank and we have enough in the checking account so that I can just write a check. Should I get it?”

The man got a frown on his face and said, “See if you can get them down to $420,000. If they’ll go down to that, go ahead and get it.”

The woman was extremely excited. “Okay honey, thank you so much! I’ll see you when I get home! Bye!”

“Bye,” said the man. He hung up the phone and looked at the other men in the locker room and said, “Does anyone know whose phone this is?”

Video of the Week

Home of the Week

I’d like to refresh everybody’s memory as it pertains to money at closing. Whenever your customer needs to bring money to closing, it is important to figure out fairly early in the process what method of payment is going the be used. Our policy, which is mandated in part our underwriter is that the customer can bring a personal check for any amounts owed at closing up to $1,000.00 or a certified check for amounts owed up to $10,000.00.  Any amount over $10,000.00 should be wired to our office. Our wiring instructions are available upon request. Generally, it is a good idea to initiate the wire the day before closing to make sure that the money is in our account and ready to go for closing. It may also be helpful to remember that most banks have a wire cutoff time of 3pm local time. On many occasions we do not have the exact number available the day before closing. Don’t worry, if that is the case we can manage.  In the event that the exact number owed at closing is not available we request that you have an estimated amount (based on the Good Faith Estimate and/or the realtor’s estimate) wired to our account. We can then settle up on the difference once the exact amount is known. If the amount wired is not enough, we will accept a check for the rest. If the amount wired is too much we will refund that amount. This policy is not intended to demonstrate mistrust but instead to make sure that we always have the funds in our account before we begin writing checks. I hope this helps.

Where We Live

For an interesting take on the mortgage meltdown click here. Looks like the real culprit was who we thought the were.

 For the latest on new short sale policies, click here.  I guess I won’t be able to call them long sales anymore. (See what I did there? I’ll be here all week).

Mortgage rates have made it under the pole again. How low can they go? Click here for the story.

Visual learners click here for a graphic outlining the current national real estate market. It’s not a pie chart but it should still satisfy your hunger for up to date data.

This weekend in Huntsville be sure to celebrate Cinco de Mayo with some southern BBQ at Whistlestop. Click here for the info.

The Best Medicine

Three Englishmen were in a bar and spotted an Irishman. So, one of the Englishmen walked over to the Irishman, tapped him on the shoulder, and said, “Hey, I hear your St. Patrick was a drunken loser.”

 ”Oh really, hmm, didn’t know that.”

Puzzled, the Englishman walked back to his buddies. “I told him St. Patrick was a loser, and he didn’t care.” The second Englishman remarked, “You just don’t know how to set him off…watch and learn.” So, the second Englishman walked over to the Irishman, tapped him on the shoulder and said, “Hey, I hear your St. Patrick was lying, cheating, idiotic, low-life scum!”

“Oh really, hmm, didn’t know that.”

Shocked beyond belief, the Englishman went back to his buddies. “You’re right. He’s unshakable!”

The third Englishman remarked, “Boys, I’ll really tick him off… just watch.” So the third Englishman walked over to the Irishman, tapped him on the shoulder and said, “I hear St. Patrick was an Englishman!”

“Yeah, that’s what your buddies were trying to tell me.”

Video of the Week

Home of the Week

Click on me!

Have you ever wondered what happens to folks who rent a house from a landlord who is foreclosed upon? Recently, I asked myself that very question when trying to help one of my clients. I was not looking forward to trying to uncover the answer I expected to be inundated with statutory schemes rife with broad, ambiguous language and countless narrow exceptions. To my surprise, the answer is rather simple. Generally speaking, The Protecting Tenants at Foreclosure Act of 2009, which has recently been extended through 2014 provides that when the tenant holds a valid written lease on residential property before a foreclosure, the purchaser at foreclosure takes the property subject to the rights of that tenant. If the lease is for a specific amount of time, the tenant may continue to occupy the residence through the end of the lease term. One major exception to this general rule may be applied when the new owner at the foreclosure auction intends to use the property as their principal residence.  In that case, the lease may be terminated if the new owner provides 90 days notice. Similarly, if there is no written lease or if the tenancy is at-will, the new owner only has to provide 90 day notice to the tenant. So, now you know.

Where We Live

Guess who is in the lending business…click here to find out. I will give you a hint: you may or may not get free origination with the purchase of a hot dog.

The most recent remodeling index is flat. Click here for the story. Maybe that means more people are considering moving up instead of building out.

I read an interesting article about a tax sale where nobody bid. Did all of the bidders just have paddle performance anxiety? Click here to find out.

The second mortgage has come pack to the party a little sadder but wiser. Click here to see how Hester plans on avoiding another A.

There is plenty to do with the kids and grandkids this weekend. The circus has come to town. Also, click here for a write up on Panoply.

The Best Medicine

The man told his doctor that he wasn’t able to do all the things around the house that he used to do. The doctor started a long and thorough examination, but finally found nothing wrong with the man.

 When the examination was complete, he said, “Now, Doc, I can take it. Tell me in plain English what is wrong with me.”

“Well, in plain English,” the doctor replied, “you’re just lazy.”

“Okay,” said the man. “Now give me the medical term so I can tell my wife”.

Video of the Week

Home of the Week

Click on me to see the inside!

Happy Easter!

Happy Friday! I hope everybody had a wonderful Easter holiday! It certainly is a beautiful day in the Valley. I had a great time last night at BBQ and Blues. There were a lot of great real estate professionals out in support of Alabama’s real estate PAC. Microwave Dave gave us a great show and there was plenty of drama at the end of the night with a drawing for the $3,000.00 grand prize. Congratulations to Tracy and Valerie who ended up splitting the grand prize and special thanks to Shannon for adding to the excitement. It really was a great night that highlighted the strengths of our real estate community.  I always feel lucky to work in a community with high quality, ethical and kind real estate professionals who, by the way, don’t seem to be too shy to boogie down on the dance floor.

I hope that everyone has a great weekend.  I’m going to try to sleep in at least one day this weekend although it is going to be pretty difficult. My youngest daughter Phebe, who will be 4 years old next month, has been resisting bedtime more and more aggressively over the past few weeks. The other night I tried to explain to her that going to bed was just a normal part of the daily cycle and that it was something that she had done every day for her whole life. She wasn’t very impressed, so I used a second strategy which was to tell her that the morning was so much fun and that the faster she went to sleep, the sooner she would wake up in the morning. (This is in fact true. I have tested it.) I even went so far as to make up a little bed time jingle whose lyrics are “It’s bright and shiny in the morning.” The second tactic seemed to work much better than the first.

Of course, what I failed to calculate in my mind was that since she actually did go to sleep shortly thereafter, she wouldn’t have to remember that jingle very long before she woke up. (faster to sleep, sooner to wake and so forth).  When I awoke the next morning, far earlier than normal, there was Phebe with her face approximately 1 to 2 centimeters from mine singing at the top of her lungs, “It’s bright and shiny in the morning!” For a moment, I felt like what I imagine songwriters must feel like when they see their work performed by an over served fraternity boy at a karaoke bar. This was not what I had in mind when I wrote this jingle, but here I was watching Phebe. Unplugged. I’m not trying to wish any time away and I really do cherish every moment I have with my ever growing kids, but I won’t be too upset when this latest phenomenon ripens in to a fond memory.  For now, she has apparently decided to play multiple dates in the same venue. She was much less pitchy this morning. I really felt like she made the song her own this time.

Where We Live

Here is an interesting graphic about everybody’s favorite topic: taxes. I included this one because shapes and colors are easier for me to understand than big words.

The folks over at the Wall Street Journal explore the tradition of the American fortress. “Before I built a wall I’d ask to know/ What I was walling in or walling out.”

Sunday marks the 100^th anniversary of the sinking of the Titanic. NPR reports on why the passengers of the Titanic reacted differently to the crisis than did those on the Lusitania.

Congratulations to our friends at Stewart Title!  They made the top of the list.

The 15 year mortgage rate has hit an all time low. How low can it go?

Many young folks are wondering whether it is wiser to rent or to buy. Here is the most recent data on the short term comparative costs.

This weekend in Huntsville, don’t miss Music in the Cove which is a new twist on Jim Parker’s singer songwriter showcase.

The Best Medicine

One day a fisherman was lying on a beautiful beach, with his fishing pole propped up in the sand and his solitary line cast out into the sparkling blue surf. He was enjoying the warmth of the afternoon sun and the prospect of catching a fish.

About that time, a businessman came walking down the beach, trying to relieve some of the stress of his workday. He noticed the fisherman sitting on the beach and decided to find out why this fisherman was fishing instead of working harder to make a living for himself and his family.

“You aren’t going to catch many fish that way,” said the businessman to the fisherman, “you should be working rather than lying on the beach!”

 The fisherman looked up at the businessman, smiled and replied, “And what will my reward be?”

 ”Well, you can get bigger nets and catch more fish!” was the businessman’s answer.

 ”And then what will my reward be?” asked the fisherman, still smiling.

 The businessman replied, “You will make money and you’ll be able to buy a boat, which will then result in larger catches of fish!” “And then what will my reward be?” asked the fisherman again.

 The businessman was beginning to get a little irritated with the fisherman’s questions. “You can buy a bigger boat, and hire some people to work for you!” he said.

 ”And then what will my reward be?” repeated the fisherman.

 The businessman was getting angry. “Don’t you understand? You can build up a fleet of fishing boats, sail all over the world, and let all your employees catch fish for you!”

 Once again the fisherman asked, “And then what will my reward be?”

 The businessman was red with rage and shouted at the fisherman, “Don’t you understand that you can become so rich that you will never have to work for your living again! You can spend all the rest of your days sitting on this beach, looking at the sunset. You won’t have a care in the world!”

 The fisherman, still smiling, looked up and said, “And what do you think I’m doing right now?”

Video of the Week

Home of the Week

I would go insane if I lived in this house

Of course we must let a little bit of reality set in before we get too carried away with our plans for our lottery winnings.  First of all, we have to account for taxes which will be approximately 30%. So once the government gets theirs, we are left with $448 Million. I’m assuming we are all still interested. Of course we are going to want all that money up front, which means we have to calculate the present value of our $448 Million.  We can sell our right to receive our winnings in regular (monthly for example) payments in exchange for one up-front payment. But the person or company that buys the right to collect is only willing to pay what those payments would be worth in today’s dollars.  Long story short, after taxes and adjustments for present value, after we win tonight we will walk away with $213 Million. Chump change right?

Now that we know how much we have, we can decide how we are going to spend $213 Million. I personally have no clue.  I’d probably want a pool. Maybe I’d go to the beach first. Who knows? There are so many possibilities. I think I would definitely still work, but I bet a lot of people say that. Just managing all that money would be a full time job.  What would you do with that kind of money? It is certainly fun to think about, but every time I daydream about winning the lottery I end up realizing that while we could all use a few more shekels in our pockets, having a few hundred million dollars can be a bit overwhelming.  Still, there is something magical about having a chance to win the big money. I’ll see you later this evening at the state line.

Where We Live

Here’s more on the lottery in case you are aching for more. There may be a way to ensure that you have a winning ticket. But is it worth it?

Some experts are tremendously bullish on the national real estate market. Let’s hope they are right!

Freddie Mac seems to think that the party has already begun. Could it be that a recovery really is in the cards?

Investors apparently think so. It kind of makes you wonder. Who is the dog and who is the tail?

Here is an interesting peice about our neighbors to the north. This idea seems “centsable” to me.

If you are in town this weeekend, swing by the art museum to check out the work of a local artist.

The Best Medicine

A woman walked into the kitchen to find her husband stalking around with a fly swatter.

“What are you doing?” She asked.

“Hunting Flies” He responded.

“Oh!, Killed any?” She asked.

“Yep, 3 males, 2 females”, he replied.

Intrigued, she asked. “How can you tell?”

He responded, “3 were on a beer can, 2 were on the phone.”

Video of the Week

Home of the Week

I wanted to take the opportunity to give you all some information on the recent development in the Alabama real estate industry. The state department of insurance now requires that we offer closing protection letters to lenders, borrowers and sellers and charge a premium for the protection separately from the title insurance.   A title underwriter uses a closing protection letter to indemnify the lender for losses caused by specific acts of misconduct by the closing agent. Closing agents have long been issuing these letters to lenders in anticipation of issuing a title policy to the lender on behalf of the title underwriter. Until recently, however, it was not customary in Alabama to charge a separate fee for issuing the CPL.  Almost all lenders require closing protection, but most borrowers and sellers decline the opportunity to purchase the closing protection. For a much more detailed look at closing protection, here is a link to the Stewart bulletin on the subject.

Where We Live

More optimism on the housing front. There appears to be a faint light at the end of a long tunnel. Keep on truckin’.

More good news! The latest mortgage delinquency numbers are promising.

Of course as things get better, the rates will react. They have already begun to rise. You cannot have your cake and eat it too. That saying has always bothered me. What would anyone do with a cake that they could not eat?

Bank of America has come up with a plan to mitigate its foreclosure losses. If it doesn’t work, the goliath lender will simply be trading foreclosure lawyers for eviction lawyers.

Here is an interesting article about how we have ended up with the current tax system. You won’t want to miss the cameos by Abe Lincoln and Donald Duck.

Not a lot to report for local events this weekend. I guess nobody wnated to plan a big event when a lot of folks are going out of town for the week. If you are sticking around, you may want to catch one of the movies hitting the box office this weekend.

The Best Medicine

Jay went to a psychiatrist.

“Doc, he said, “I’ve got trouble. Every time I get into bed I think there is somebody under it. I get under the bed; I think there’s somebody on top of it. Top, under, under top. I’m going crazy!”

 “Just put yourself in my hands for two years,” said the shrink. “Come to me three times a week and I’ll cure you.”

“How much do you charge?”

“A hundred dollars per visit.”

“I’ll think about it.”

Jay never went back. Some time later he met the doctor on the street.

“Why didn’t you ever come to see me again? Asked the psychiatrist.

“For a hundred buck a visit? A bartender cured me for 10 dollars.”

“Is that so! How?”

“He told me to cut the legs off the bed.”

Video of the Week

Home of the Week

Run the Picket Fence

Happy Friday to you all! March Madness is upon us once again and with it comes the promise of that winning bracket. As long as I can remember, I have filled out a bracket to compare with my friends. I can remember as a kid that I would scour the USA Today for information about all the teams in an attempt to create that perfect bracket.  I would be glued to the television watching ESPN and trying to uncover that piece of information that would give me the edge over my friends. The trick, I have always thought is to find those teams who would overachieve and find a way as underdogs to upset their competition. That is easier said than done. There are a handful of upsets every year, but picking the wrong upsets can have a doubly negative effect on your bracket score. So you must pick your upsets wisely.

The filling out of brackets, keeping up with the outcomes of the games and competing with friends is what makes the NCAA Men’s Basketball Tournament one of the most exciting and compelling events of the sports year. This exercise of choosing winners does not come without its unholy alliances however.  For example, as a died in the wool Auburn fan, I cheered for our biggest rival , the Crimson Tide who played valiantly but lost in the first round. Why? Because I picked them to win. After the first day and a half of the tournament, my bracket is not at the top of the list by any means, but it is still early and hope springs eternal on the first weekend of the tournament.

The Best Medicine

A lawyer defending a man accused of burglary tried this creative defense: “My client merely inserted his arm into the window and removed a few trifling articles. His arm is not himself, and I fail to see how you can punish the whole individual for an offense committed by his limb.” “Well put,” the judge replied. “Using your logic, I sentence the defendant’s arm to one year’s imprisonment. He can accompany it or not, as he chooses.” The defendant smiled. With his lawyer’s assistance he detached his artificial limb, laid it on the bench, and walked out.

Video of the Week

I just had to go with this one two weeks in a row.

Home of the Week

But does it have wifi?

In other news, the local real estate market seems to be gaining momentum. The numbers may not be spectacular yet, but the whispers and murmurs I have been hearing form locals in the know are promising.  Obviously, the turnaround in our market depends on what goes on with the national economy and consumer confidence, but there are subtle signs that this market is headed in the right direction. Personally, I have seen a rise in existing residential sales in the last quarter and with the rates still at record lows, particularly on the 15 year note, there is still a lot of buying power out there. As demand begins to increase and prices inch up, hopefully we will see local homeowners gaining some equity and moving out and up. Once that happens, we will see even more activity in this market. Until then, I hope you enjoy our latest installment and have a great weekend!

Where We Live

You can be happy that you were not on this flight. I can only imagine what a relief it was once this flight was finally over.

Shoulder surfing is the wave of the future. Or is it? Photoshoppers could have a field day with this new trend.

Here is an inforamative article for your files on 203(k) rehab loans. It always helps to have some walking around knowledge about these sorts of things.

Good news from the national homebuider scene. Hopefully some of this good news will trickle down to our market.

Here is some new technology that looks like it could be helpful.  We are all one step closer to being a huge pack of zombies.

Meet this nice young lady. She is your landlord. She cannot fix the faucet this morning because she cannot miss homeroom.

Don’t miss picture pages at the Flying Monkey tonight!

The Best Medicine

A couple of New Jersey hunters are out in the woods when one of them falls to the ground. He doesn’t seem to be breathing, his eyes are rolled back in his head.

The other guy whips out his cell phone and calls the emergency services. He gasps to the operator: “My friend is dead! What can I do?”

The operator, in a calm, soothing voice, says: “Just take it easy. I can help. First, let’s make sure he’s dead.”

There is a silence, then a shot is heard. The guy’s voice comes back on the line. He says: “Okay, now what?

Video of the Week

I should hire this guy to make sales calls every Friday.

Home of the Week

Helicopter Not Included