Hello everyone out there … Whomever you are… Wherever you are…
Watching this little blog about how much escrow life … sucks.

OK –Here goes – just a quick post for the night…

Today is Monday, twenty first day of December in the year of 2009 — also to be known as the winter solstice. For the shortest day of the year, it certainly felt like the longest.

Not sure if all loan agents, realtors, and processors (except for the elite nice understanding few, you know who you are) were on mass-cluster-PMS mode or something today, but it was funky. I admit, I did not have any Midol to hand out to anyone as it was used up in last weeks agglomeration of idiots.

Keep in mind, our critically short staffed office was even more critically short staffed because –*gasp* — another EO was on v-v-v-v-v-v-v-v-v-vacation. YES! That’s RIGHT!!! (Remember escrow-rule-of-the-universe #41452, found in escrow manual section F, subparagraph, 231 — “Escrow personnel may NOT take vacations. Never now nor in the lifetimes to come! Else the world will come to a grinding halt, an asteroid will smash into the Yucatan Peninsula again causing the extinction of the dinosaurs, the seven plagues of Egypt would be unleashed, Armageddon will begin, and Earth would get sucked into a black hole.”) And yes, we all are aware that it’s a fraggin’ short week and everyone “needs” to get their ‘ish done yesterday. We know the drill and have memorized all the pointless little need-to-sign-now cliches by heart.

Ah, today… what a day. Typical day that just sucked all around. Just a few things about today…

-Today, people just didn’t understand the word “tomorrow”, as if working on docs that expired next month “tomorrow” was unacceptable.

-Today, endless documents kept flowing in with endless idiots attached.

-Today, people tried to take toys out of the toy drive bin, thinking it was some type of souvenir for document signing.

-Today, the copier got all jacked up and service had to be called twice within 24 hours.

-Today because the copier was jacked up, funding packages were delayed.

-Today, we had mortgage brokers and their peon processors who had their heads so far up their rear that they didn’t know who requested what and blamed escrow for the subordination that they didn’t request correctly.

-Today, it seemed like escrow became more of an idiot magnet than usual.

-Today, a borrower used the bathroom and didn’t turn the fan on, so it really stank.

-Today, a realtor kept looking for a lenders wire for a loan they knew that they knew would fund tomorrow.

-Today, we kept getting random calls about rebates to our phone service.

-Today, there were many random walk ins for random document signings that weren’t at our branch.

-Today, a signing ended at 4 for a purchase that is 2 weeks out of contract, and the funding package was sent out for funding yesterday. (Remember: time travel in escrow is possible.)

-Today, I estimate a good 42,432 acres of rainforest was lost forever due to the amount of paper we used for the stupid transactions.

-Today we had conditions come in at 5pm for a pre-funding that “had” to pre-fund by 7pm.
(Thanks Sofia for your help …)

-Today, that loan agent with the 7pm pre-funding — shatted in his pants because, heaven forbid — the loan won’t pre-fund by 7pm today and an extension would have to be paid for.

-Today, a funder told me and D. (Hi D!) that a loan could not fund because a legal size attachment to an email would not display on the screen correctly – the file could not fund because the attachment is only coming on the screen “sideways”.

Today – a very long “shortest” day of the year.

I get into the office, and try to get some grub with some coffee – and of course I can’t do that because random clients walk in 1 hour early for a signing.  So I can’t leave the office for another hour because it’s just me and the Boss-dude in the office. Boss-dude then signs the clients. So I am screwed. I can’t leave, and I really have to take a dump and I can’t because I am the only one there.  People are calling left and right about their loan docs, and I’m thinkin’ I’m gonna use their Effin’ loan docs to wipe my rear since they keep calling about it, and I really really… have to go. I mean, it’s bad.

The first phone call I get is about a payoff wire that I sent out weeks ago to pay a loan off, and of course — the loan is NOT paid off.   What is going on?! I sent the wire out so I call the bank and tell em that they royally FAILED. Fed ref number provided and all. You know what they did? They then put me on hold for a stankin’ HOUR (55 minutes to be exact) – only to confirm that they “…did not know what happened.” Furthermore, they have “…no explanation as to why the wire was lost” — and they “finally found the wire” (keep in mind, this is over 2 weeks later, and by now the borrower is already LATE. While on hold, phones are going nuts and emails are just non-stop.ONE HOUR of my day wasted because of someones STUPIDITY. Wasting MY precious time.

So anyway, that’s taken care of – however I’m now 1 hour behind and I have loan agent Ding and Dong asking me to figure out how long it takes for a subordination to be processed. DUH, I DONT KNOW. I gave Ding and Dong the phone number to call. They were shocked – OH EMM GEE!! They actually have to make a phone call to a subordination department?!  Uh – yeah buddy, that’s why you’re getting the big bucks. Friggin pick up the phone and call and do some work.  Stop skypin’ me from your vacation and CALL. Do I LOOK like a subordination department to you?!

Co worker gets in, and I’m finally able to hit the porcelain up. Relief. And you know, I can’t even do that in peace since the phone is right outside that door and I hear the ringing — And I’ve had a messenger even knock on the door asking for info while I am doing my thing. I mean – I can’t even take a DUMP in peace sometimes. I am serious. Why do the messengers KNOCK on the door asking me where the package at the front is? Uh, dude, its at the front. Not that hard buddy.

Anyway–  a little later—

A few sets of loan docs hit all at once during this time (5 sets at once, I swear, lenders time this…)  And of course – “they all have to sign tonight” because — you guessed it, they are ALL leaving for vacation. That’s nice. Really. Why is it borrowers schedule their vacation right when loan docs are coming? How RUDE. At least let your escrow officer leave for vacation – which EO’s are entitled to by the way. You ever see the look on a loan agents face or hear the fear in their voice once an EO tells them that they are going to take a day off? God forbid that LIFE gets in the way of WORK.  I can’t even get to the closings because every phone call we get is some whiny-weak agent throwing a tantrum either because they need their diaper changed — or they only have one deal in the world they are waiting for.  And they need fees now…

One of those sets I got in today, mind you, was a set that was redrawn several times. 5 times to be exact. No comment.  That means 5 funding packages, 5 recording packages, 5 times requesting the insurance, 5 times conditioned… and the last time the lender funded the thing, and then put a condition in after funding and requested me to send back the wire and pull the recording at 4:30 the day before recording?! WHAT is wrong with this industry?! Fidiots GALORE.  Anyway got those docs out. Signed and hope that it won’t get redrawn again.

One of the phone calls I get during this time — someone saying that a property has not been returned into a trust.  I promptly emailed a copy of the RECORDED GRANT DEED. Key word: “RECORDED” — grant deed that put the property back into their trust.  I sent this deed to them and they in turn send it to the lender, as they are trying to get an equity line.

All within 2 minutes, the problem was solved. In about 5 mins – I get a phone call from a lender saying that their equity department’s prelim isn’t showing the recorded grant deed and that the property is not in the trust.  This is one of those funky things where they don’t want us to issue title insurance but are expected to do their work. Picture this — they confirmed that they have a copy of the RECORDED grant deed to return the property into the trust – but they don’t know what to do with it because their prelim does not have this info. I told them – SHOW the grant deed to their in-house title dept, or whatever they are.

So, the rep for the home equity department said “Well, they saw this grant deed and they are telling me their prelim does not match, what should I tell them?” — My response was – “In all honesty, tell them they SUCK, plain and simple. They SUCK. You have the recorded deed with the series numbers there confirming that it’s recorded in the trust, right?” She answers “Right.” I say “Well, if it’s recorded and in your hand and they see its been recorded, then they should update their prelim. And if they can’t make sense of that, then I am truly sorry, but they SUCK.”

I mean, how hard is it?  They have the proof. Friggin’ fix the prelim.

Day continues as usual – in the same fashion as the day started. Constant people calling, more docs to draw… so on…

***

A realtor who we shall refer to as Doofus also continues to call in (about 5 times today), trying to schedule signings for docs that have not been here for the past 2 weeks and highly doubtful that docs will even show up anytime soon. Doofus does not get that loan docs need to be here first prior to signing. Else there will be nothing to sign. Not that hard, Doofus. So he calls again.  Grr.

***
Ok, so now 4:30 pm — finishing drawing other docs, answering stupid phone calls, emails… faxes, getting things funded, so on… I then get another phone call from  a realtor — and just for now, we’ll call her “Like-Barbie”. (Say it in your valley voice accent. “Like-Barbie!”)

So, Like-Barbie calls asking for her EO.
“Uh, Like Hi! This is Like-Barbie is [So and so] there?”
“No.”
“I need a HUD now. For a short sale. I need it now. Can [so and so] do it?”
“No. [So and so] isn’t in today. “
“An assistant, like maybe?”
“No, we don’t have assistants.”

So, like a retarded recording…
“Hi, uh, this is Like-Barbie and I need a HUD now for a short sale.”
I tell Like-Barbie she could either leave a voice mail for her EO or email her EO for that HUD.  It’s 4:30 fer cryin’ out loud. You want a HUD? Don’t wait till the last 30 minutes of the normal working day…
I have a few other “now” and “yesterday” requests I am working on.
Like-Barbie then puts me on hold saying:

“Like– Uh, like hold on…”

Like-Barbie muffles the phone and I hear in the back ground that Like-Barbie is ordering some triple-brownie-mocha-java-soy-non-fat-decaf-sugar-free-organic-hazelnut-no-whip-no-foam-salted-latte-schmatte. Sounded like Like-Barbie’s urgency was really the drink. Phone unmuffled –

“Uh, like, this is Like-Barbie and I need a HUD.  So, like,  you can’t do it for me like, now?”
“No. You can either leave a message for [so and so] or email and they will get this to you at their earliest convenience.”
I put Like-Barbie at this point, not letting Like -Barbie get another word in, and transfer the call to Like-My-Boss-Dude. Like-Boss-Dude Tells her same thing, then hangs up. Loudly.

So, Like-Barbie — How hard is it to leave a voicemail? Or send an email whilst sipping your triple-brownie-mocha-java-soy-non-fat-decaf-sugar-free-organic-hazelnut-no-whip-no-foam-salted-latte-schmatte from your iPhone? Do you NOT understand English?  Do you need an interpreter? There are other urgencies happening in escrow that are more urgent than your triple-brownie-mocha-java-soy-non-fat-decaf-sugar-free-organic-hazelnut-no-whip-no-foam-salted-latte-schmatte emergency. Your problems are NOT, like, mine. Like heck yeah.

***

So I draw the docs up, all set to go. I then get a phone call from loan agent which we will call Dingbat. The past few weeks (like 2 months) we were going over all details, getting all signings set up. I would get pestered for docs every day for the past 2 weeks. I hear back from a few in the condo conversion group confirming they are all set for signing tonight.  And at 5pm. 2 hours before the signing with 6 people — Dingbat says “Oh, by the way, [dude] is in [another state.]” … EFF!!!  WHY do people not tell EO’s that people are OUT OF TOWN? Is there some unwritten universal rule that says NOT to tell EO’s information such as “The dude is in another state?”… EFF!  At least we’ll get most of the signatures down, but minor details like that should really be disclosed…

Just another day in escrow… Escrow sucks.

To me, that’s what web 3.0 could offer. Along with the scary stuff like, digital footprinting, facial recognition identification (Think about Googles latest release, Google Goggles) and GPS location tracking, that can be used for purposes that are borderline illegal and unconstitutional.

 I believe Web 3.0 will be partially focused on Consolidation, Filtering of so much useless noise, anda  marriage of currently used applications to create a more useful and time specific enviroment, as I gave in the example  above. 

So think along with me here, and on Zillow’s Geek Estate Blog, as we explore this very interesting and controversial topic of Web 3.0 and more importantly, what will it look like? 

Tell me what you think?  

TheRECoach 

Guardmann Escrow Services are the company you need to use when daling with large sums of money and companies you are as yet unsure of.

Words cannot adequately describe what escrow officers constantly and unwillingly have to endure. Escrow is downright raw. It boggles the mind just to think about how those that are unfortunate enough working in these uninhabitable conditions even seem to survive.

Escrow seems to have that numbing effect that desensitizes and ultimately … dehumanizes.

We become robotic and fully compliant machines. We turn into magical beings that grant every wish. We are time travelers that go back in time to get things done yesterday, and we are also mind readers. We’ll do that. We’ll make your mind up for you and tell you how to structure the transaction. We tell you what you want to hear, remove items off the prelim for you at the snap of our fingers, and best of all – we do all of this and so much more – for FREE! YES! No longer are we human – but rather, lifeless, oh so lifeless shells that can do — anything.

Opening an escrow is like opening a Pandora’s Box. Each transaction sets off a chain of events that each heroic escrow officer must endure and conquer. “ON RECORD” are the words we live for. (And even still, occasionally transactions don’t stop there…) Once an escrow begins, the floodgates for incessant client whining is opened. Permission for frivolity is granted. Absurd insensibility seemingly is given free reign. Stupidity then runs rampant. Principals to the transaction are almost immediately alerted and then directed to leave the country. An $800,000.00 personal check is given to be used as funds to close. (Thanks T.) Computers freeze and systems that are no good and were never good to begin with — well stay that way or get worse. A deluge of paper drowns out any sensibility whatsoever that may of existed. Phones then won’t stop ringing while emails breed and multiply in the inbox like a disease. Every other party involved in the transaction all of a sudden changes their vocabulary to only use the words “I need”, “favor”, and “right now”. By the way, at this point speaking to the escrow officer is no longer acceptable. You have to yell. And loudly at that. The louder you yell, the faster escrow can close. Then uncommon common sense and kindness is forever lost. Moronic imbecility possesses everyone else as lenders delay in producing the documents while agents simultaneously disappear. That is — until the day of recording where in unison they all grunt “Where’s my commission?”

Escrow office staff size then mysteriously dwindles along with the paychecks while “the higher ups” push for more and more and more of this madness — and yet, all that is given for support to deal with this insanity is less … and less… and less.

Oh escrow. Wonderful escrow. This is where the magic happens.

Now if you have been following my Posts on Zillow’s Geek Estate Blog on the subject of Web 3.0, you know that a well grounded group of experienced individuals are debating WHEN it will arrive and WHAT will it look like, but…

“Web 3.0 – A Post Intended to “Define” & “Design”, - Original Post Nov 2nd

Web 3.0 – Discussion #1 – “OMG, I Never Thought of That!”  #2 Nov 20th

Web 3.0 – A Series of Posts Intended to “Design” & “Define” – Question #1 Discussion #3 Dec 3rd

Web 3.0 – A Series of Posts Intended to “Design” & “Define” – Question #2 Discussion #4 Dec 10th

…Apparently someone thinks it’s already here! I was working on some SEO stuff surrounding Web 3.0 (My favorite new topic) and came across this ad on Craig’s List…

Web 3.0 Real Estate Office (Dallas / Ft Worth)

Come Find eXp @:
• Website – http://exprealty.com
• Facebook – http://facebook.com/exprealty
• Twitter (Corporate) – http://twitter.com/exprealty
• Twitter (Agent Blogs) – http://twitter.com/expagents
• LinkedIn – http://linkedin.com/ companies/exp-realty

So I clicked!!! and damn, if they were not advertising themselves as …

“As more and more people flock to the web for information and services, the need to be at the leading edge becomes ever more apparent to garner viewer ship of the product or service. Real Estate is leading the charge toward the web 3.0 environment as consumers continue to look for better information and content [...]“

Now, they do have a few cool things going for them, and a Facebook Fan Page interface…. With 2 of my favorite Bloggers of all time as Followers….

Nicole Nicolay of MyTech Opinion.com & Mike Price of MLBroadcast, but…

…Are they really Web 3.0??? I want to hear from you. Tell me what you think, are they really Web 3.0?

The Coach!

Bus Development Rep for ”Pango Group”

At Pango Group, their unparalleled real estate expertise is based on a solid foundation of services, a talented and responsive staff, strong ethics, and hard work.

They are the umbrella brand for a suite of closing service companies which facilitate California based real estate transactions for discerning individuals and leading financial institutions across the United States.

Pango’s level of Customer Service is unsurpassed, with an amazing 99.8% Customer Satisfaction rate from over 1,000 Customer Surveys per month!!!

Do You Pango!?

We hear some funny things in escrow – especially from those who are supposed to “know”.

You know, realtors, agents, loan agents…  “supposed” to “know”.

Below is a short compilation of actual quotes from realtors, agents, and loan agents.  Names have been withheld to protect their stupidity.

-”Do you know how much is my commission?”

-“Can you tell me the sales price? I can’t reach the contract… I’m driving”

-“Do you know what’s my seller’s name?”

-”How do I know if my seller is dead?”

-”Hi, I think I might have forgotten to tell you to hold 4,000.00 from the seller for move out.  Did you happen to hold the money anyways?”

-“I have a listing. What do I do now?”

-“What should the sales price be?

-“Go ahead and credit 5300 from the 4000 commission”

-“Can you please call my client and ask if it’s ok?”

-“Can’t [the title company]  pay for my buyers fees?””

-“I don’t know what my commission should be. I’m not good in math.”

-”I’LL GIVE YOU ALL MY BUSINESS”

So, Escrow Sucks would like to know – what are some of things you have heard??

Every holiday season the First Team® Family of Companies joins in supporting an Orange County, CA charity with donations from employees at their Costa Mesa, CA headquarters. This year, the Salvation Army’s Adopt-A-Family program gave First Team® and its employees the perfect opportunity to be involved on a more personal level.
Social workers, working in tandem with the Salvation Army, nominated a multitude of “most-in-need” families, which they are in regular contact with. Eight departments, at First Team® headquarters, each took on one medium-sized family with two to three children. Each family supplied a list of things they need, which was passed along to the department who adopted them.
“The Adopt-A-Family program is a great way for First Team to give back to those in most need, throughout the communities we serve,” says Ondar Tarlow, Vice-President of Marketing and Public Relations. “Participating employees really enjoyed learning about the families they were helping.”
“Items ranged from blankets, shoes, and warm clothing to a new bicycle for a nine year old boy,“ said Suzanne Brown, Technical Asset Manager at First Team Real Estate. “Winter jackets was a big one everyone’s list, and we tried to get each of the children at least one new outfit.”
Cameron Merage, First Team® Founder, President and CEO, gives his thanks to everyone at First Team® Real Estate, Hallmark Escrow® Co.,Inc., Coast Cities Escrow®, Western Resources Title®, and Bankers Funding® who participated. Well-known for his own philanthropy throughout the year, Mr. Merage says he’s “proud and honored to work with such wonderful people, who really understand the community and how to support it through philanthropic donations, and why it’s so important to try and make positive changes in people’s lives.”
If you would also like to participate in the Salvation Army’s Adopt-A-Family program, you can call them at (714) 832-7100 or visit www.salvationarmyoc.org for more information. Other worthy charities the First Team® Family of Companies have worked with include Orange County Rescue Mission and Olive Crest homes for abused children. They can be contacted at www.rescuemission.org or www.olivecrest.org.

Media Contact:
Weeda Lutfi 714-557-0771 x 218
weedalutfi@firstteam.com

A Cost That Most Property Buyers Overlook By Michael Masterson

When buying a property, many people completely overlook transaction costs. These include:

Points and fees for the loan

Escrow and title insurance

Inspection fees Attorney fees

Commissions

Additional “garbage” fees that lenders and escrow agencies tend to throw in If you’re not careful, they can easily add up to more than you’re prepared to spend.

Your total closing costs as a buyer should usually be between 2 and 3 percent of the value of the property. Get all quotes in writing. And get a Good Faith Estimate (GFE) from your lender before you commit to a loan. Okay the estimate before you pay an application fee. Make sure taxes and impact fees are correct. Be fair, but negotiate whenever possible. You could realize considerable savings

First let me say that I love doing what I do. My Clients are all fantastic, and (for the most part) are all friend’s of mine. I WILL NOT ABANDON ANY CURRENT CLIENT!!! but, that said…

I ran across an amazing company about 3 months ago, who at that time I knew as, Glen Oaks Escrow in Glendale Ca. They are now “The Pango Group” to highlight their entire group of companies including; Glen Oaks Escrow, CV Escrow (Coachella Valley), American Trust Escrow, CMG Escrow (in San Fernando), & TC Solutions a Transaction Coordinator outsource. They are the largest, independent, escrow/closing services company in California. From the moment I entered their “stylish” yet simple office complex I knew I was somewhere special, somewhere “Unique”! I was greeted with a smile and a “welcome”, offered a cup of coffee or bottled water, and was seated on a very comfortable couch as I awaited my meeting with Jeff Russell, the Executive VP.

I was there, in part because one of the RENet’s own Stacey Harmon of Stacey Harmon Enterprises (a long time Real Estate Agent and now Social Media Consultant),  was hired by them about a year ago to push forward their “Social Networking/Social Media” agenda. This in and of itself was impressive. I mean, what other Real Estate industry company (Let alone Escrow), has had the forethought, initiative, and budget to do something like this? I could probably count them on one hand! but that’s what makes these guys so unique, they get it! Rather than be happy with being #1, rather than being complacent, rather than cutting back the budget…They “Go For It”, they see the promise and future in SM, and in the Internet as a whole and create an entire strategy out of being “First to Market”. I LOVE IT!

After my tour of the campus which included; Operations, Sales, Accounting, and most impressively the Service Center, I realized that the entire company had bought into, and perhaps even lives by, the Pango mantra “Execution Through Grace & Kindness”! and it is certainly working…Have you ever heard of any company, never mind an Escrow company (whose soul purpose is to monitor and stand guard over “The most important transaction of your life”; Your home purchase), maintain a Customer Satisfaction rating of 99.8%!!! (as confirmed by an independent firm) and that is from an average of over 1,100 surveys per month…1,100!

So after 3 months of learning, listening, and networking … I JOINED EM! I am now an Ambassador for Pango Group, a Business Development Representative, right here in my own “backyard” of Orange County! It is my intention to introduce the Real Estate professionals (Brokers, Agents, Mortgage Specialists, Credit Unions and Banks, Title Companies et al) of The OC and beyond to, what I honestly believe to be, The Finest Closing Services Company in California!

The Finest Service, The Finest Products, The Finest People, and The Finest Value…Period!

I dare anyone to show me different!

So join me, right here at MyRECoach.com, as I/we learn all about this “Mysterious” world of Escrow. A world that has somehow been so important to so many, yet less than 2% of all Home Buyers can tell you WHY DO THE ESCROW COMPANIES EXIST? and more importantly, WHY ARE THEY IMPORTANT? We will explore this together, and I will bring my “real life” experiences from the OC here, to MyRECoach.com, and help you to understand them as well.

 Thanks for tuning in…

The Coach

For most people with a home mortgage, their monthly payment includes an amount that is placed in escrow to pay taxes and insurance. This forces borrowers to set aside a portion of these annual payments each month so they aren’t caught short when the bills come due. It protects both the lender and the borrowers. It is a concept that could be used by nearly everyone to avoid having to go in debt when large annual or semi-annual bills come due.

Unfortunately, too many people simply spend the excess cash that is left over after paying their monthly bills. They don’t realize that some or all of this money will be needed to cover items like car or life insurance premiums, birthday and Christmas gifts, personal property taxes, vacations, and any other large expenses that occur infrequently. When the bills come due, they are faced with three choices; earn more, spend less or go in debt. With consumer debt approaching $3 trillion, it’s quite obvious which choice these people are making.

Imagine how it must feel to be going along month after month enjoying life and thinking that you are doing well financially, only to receive a bill for several hundred dollars for the annual premium on your car insurance. You look at your bank account and realize that after paying the insurance bill, you won’t have enough left over to cover groceries, gasoline and other monthly expenses. That’s when the credit card comes out.

You charge the groceries, gasoline and other expenses to the credit card and tell yourself that you’ll pay it off next month when the bill comes due. But next month is vacation time, so you take a trip, spend your extra money and end up charging more to the credit card account. Once back from vacation, because you’ve overspent, you find that you need to charge still more to again cover basic necessities.

These added charges continue to mount and your credit card balance grows to more than you can pay in a month, so you make a partial payment and plan to pay the rest over the next couple of months. But the holiday season is fast approaching and you want to buy some nice gifts for family and friends. Once again, your expenses are more than your income, so more charges are put on the credit card account. Now, when the bill arrives, the first thing you notice is that several more dollars in finances charges have been added to the outstanding balance and the minimum payment does little more than cover the added interest. You can’t pay much more than the minimum payment, because it will cause you to be short again and you’ll need to add more to the balance. Sound familiar?

This scenario and variations of it are what get people in financial trouble. It is also the reason lenders require an escrow to cover taxes and insurance when they make a mortgage loan. They want their interest to be protected in case of fire or other disaster and they know that if you fail to pay taxes, they will have to pay the tax lien to protect their mortgage. Why don’t people follow this same procedure with other expenses to avoid getting in financial trouble? We all have expenses that only come due once or twice a year, yet too few people plan for them.

Here’s a tip! Start by making a list of all the things you pay annually or semi-annually. If you don’t know the exact amount of the expenses, make a generous estimate of what you think they will be. When you are doing this planning, be sure to add an amount for things like tires and repairs for your vehicles, home repairs, and other unexpected expenses that aren’t regular, but can be expected to occur. Once you’ve identified all of these type expenses, add them up and divide the total by twelve. This will give you a good estimate of the amount of money you will need to set aside each month to avoid having to go in debt.

Step two in the process is to open a money market account to use as an escrow account. Each month, treat the amount you calculated as a recurring monthly expense and deposit it into the account. Then adjust your lifestyle to live on what’s left over. Although it might sound overly simple and you might think it is foolish, using a separate escrow account to accumulate the money needed to pay large irregular expenses is a proven way to make sure the money will be available when the bills come due.

Keep in mind that these expenses are occurring each month whether you plan for them or not. Personal property taxes and auto insurance are just like homeowners insurance and real estate taxes, they will come due and have to be paid. Tires wear out and vehicles have to be maintained. Paint, carpet, roofs, appliances, heat and air conditioning systems eventually wear out and have to be replaced. Paying for the use of these items a little at a time as you use them is much easier than having to come up with a large amount of money or go in debt when they need to be replaced.

Using a personal escrow account to accumulate the money for large expenses has a couple of other big advantages, not the least of which is the fact that the money you are saving will earn interest instead of costing you interest as it does when you borrow. But, the biggest advantage of all is the peace of mind that comes with knowing your finances are in order and you won’t be caught short when large expenses come due. It sure beats going in debt.

Original text from article for Asheville Citizen-Times, 46th week of 2008

DocPros, Inc. provides nationwide notary signing agents who bring the loan signing process to the borrower’s doorstep at a time that is conducive to their schedule. DocPros, Inc. gives our customers the competitive edge by coordinating the finest notary available with the nation’s top escrow and lending organizations to serve the borrower’s needs.

What a crazy Monday it is…but it’s a good one!

So, I don’t see a lot of wholesalers wholesaling Foreclosures that are owned by Fannie Mae. I wanted to touch base on this subject, since I think it can be tricky for people who are flipping FNMA (Fannie Mae) foreclosures.

There is a lot of confusion for a lot of wholesalers out there that are flipping REO properties to their cash buyers that are not FNMA properties. That is truely a remarkable thing, since its easy to mark them up as much as you want. Of course, you don’t want to mark them up to much or else you will lose business and barely close deals. The confusion that I see and have experienced with other wholesalers is the mark up on selling the property to their buyers. There is a specific percentage that you really need to calculate correctly that most wholesalers don’t know about and if you don’t properly increase them by that FNMA percentage you can and will get stuck with a property you cannot resell to your buyers….this will kill your deal and profits!

There is a seasoning issue on FNMA foreclosed properties if you are planning on wholesaling them. I wholesale these types of properties. WHY? Because, barely any other investors are doing it so this market is untouched. FMNA has a specific percentage that you are required to resell at if you do not plan on rehabbing the property and holding it for 3 months or more. This percentage will make or break your deal!

Although Fannie Mae prefers cash offers, many financing options will be considered. Down payment assistance programs, seller paid closing costs and home warranties are often considered. Remember, everyone’s goal is to provide affordable housing to owner occupants or cash investors. Fannie Mae encourages investors to purchase foreclosed homes, but the requirements to purchase are slightly different from that of an owner occupant. An investor is required to provide 10% of the purchase price in earnest funds when making an offer to purchase. If an investor purchases a Fannie Mae Foreclosure, there is a Deed Restriction placed on the property that the buyer/new owner cannot resale the property for more than 120% of the purchase price for a period of three months.

So guess what this means…..? You can still flip the foreclosure just as long as you stay within 120% of your purchase price within your first 3 months! For example, here are some numbers on a deal we did a couple months ago that was a FNMA REO:

North Miami Area
Single Fam. Res.
Purchase Price: $45,000
Re-Sell Price (next day): $54,000
10% Down Payment: $4,500
We paid all our closing cost on A-B Transaction ($2,200 closing costs)
End buyer paid all closing cost on B-C transaction

We walked away with a pretty sweet profit for a couple of hours of work!

FNMA foreclosures can be challenging at times, especially since you need 10% escrow, but can be profitable at the same time! Now, go out there and flipthisforeclosure!

Oh, btw don’t forget to get on our exclusive buyers list: http://reo.everlastingfoundationsonline.com/exclusive

The best way to help create a successful purchase when using financing, is to make sure the information needed to understand the home loan process is understood.  This allows the right decisions to be made for any given situation.  The Mortgage Disclosure Improvement Act (MDIA) amendments to the Truth in Lending Act (TIL) — also known as Regulation Z — are designed to allow homebuyers adequate time to review specific information related to their loan.

Changes include:

Initial TIL disclosure.  A seven-business-day waiting period is now required between the delivery of initial disclosures and the signing of closing documents. This will eliminate the possibility of closing in less than seven business days unless the borrower faces a bona fide personal financial emergency.

Up-front fee collection.  Up-front fees cannot be charged until after the borrower receives the initial disclosures. If disclosures are mailed, the fee is charged the fourth business day after mailing. If disclosures are hand-delivered, the fee is charged the same day.

Redisclosed TIL.  If the interest rate or fees change, causing the APR to increase by more than 0.125% then a revised TIL must be sent to the borrower so that the customer receives it no fewer than three business days before closing. Each time the TIL is redisclosed, the waiting period starts over and could affect the original closing date. If the rate is in float status, a redisclosed TIL will not be provided each time there is an APR increase. Redisclosure should be sent, if needed, eight business days before the estimated closing date.

Together, we can work to ensure timely closings by setting appropriate expectations and understanding the recent changes.  Timely communications about settlement, locking in rates early enough to allow time for redisclosure (if required) and obtaining accurate information on third-party fees that may affect APR, are all important actions to make sure unnecessary delays are avoided.

The dates are big and clear. The signatures are signed just as the name is printed. The recission dates are clear and correct. The forms are filled out completely.

Did you know that SD Signings takes extra precautions with every signing. We go over all the necessary procedures with the signers to ensure that the documents return correctly. We complete personal checklists to guarantee that we have completed all of our necessary tasks. We double-check each page for any document blanks, scratchy dates, or missing signatures.

We make sure the signing is done just once. No more, no less.

Thank You San Diego!  Thank you for using our notary services! We’re glad to serve your escrow offices, law firms, and businesses repeatedly!  We consider it a great honor.

The greatest part of participating in this line of work are the new people we meet and the relationships we hold dear. We’re glad to have a strong reputation among San Diego’s finest companies! We value integrity and workplace excellence! We hold strong to client privacy and security. This is what we’re about!

We’re excited to let you know that because of your appreciation of our company, we are growing throughout San Diego County. We are able to share and accommodate others like yourself!

In hearing this… would you? and could you spread the word? Would you ‘YELP‘ about us and have us ‘Linkedin’ to your close friends? ‘Crossing‘ over your reviews and kind comments of our services on the net we’ll have us shouting ‘Yahoo’.  We already owe you a ‘Google-plex’ [....googolplex ] of thanks for your loyalty to us.  So ‘Sign on San Diego’, we’re  growing like the ‘Kudzu’ plant (Pueraria lobata) and we find ourselves ‘twittering’ in excitement.

We hope you enjoyed all of that. It was fun for us too!

If you have used our services and do leave us a review, we have thought up a special way to say “Extra Thanks”. Drop us a note including: your name, the approximate date of notary transaction, site reviewed, and your mailing address. We’ll send our thanks

By Steve Yapp

You just bought your new home and the buying process with the Realtor, mortgage company and escrow service are all in motion. Packing is well underway and you have determined what you can live with over the next few weeks rather than packing everything in boxes. You have a closing date and everyone in the family is excited. Everything is a go, or so you think.

The exact date of escrow these days can sometimes shift by a day, a week or even several weeks. Where does that leave you? You have presumably already provided a moving date at the current residence, the utilities have been scheduled for disconnection and switched to your new location, items you use daily are in boxes and the moving company has been prepaid to show up on a predetermined day. Now, the moving date has been delayed a few weeks, the movers can not show up on your new date, you lose your moving deposit, and you find yourself in transition – between homes – needing temporary storage.

“This exact scenario took place with a family we know who had contracted with a traditional moving firm,” said Steve Yapp, franchise owner of PODS in Ventura, Santa Barbara and San Luis Obispo Countys. “Escrow was set to close and the move scheduled for the following day. The problem? Escrow was delayed with no confirmed date provided, leaving this family in limbo. Devastated, she called PODS, to store everything until the new home closed, then had the PODS containers delivered to her new address.”

Moving can be stressful on families during this hectic time. If you are not exact on your date, or the date changes, PODS can accommodate moving and storage needs on your timeframe, leaving you in control of the move. Yapp offers the following tips to homeowners.

5 tips to remaining flexible during a move:
1. Expect the unexpected. A closing escrow date is never guaranteed until you have signed all documents and are officially presented with keys to your residence.
2. Plan ahead when packing your home. Label each box clearly and keep a list of items in 3. Do not pack items you may need to use on a daily basis. Items to hold out until moving day include personal hygiene, medications, at least one week of clothing, phone books and a folder with all moving records.
4. Stay connected. Leave your home computer connected until the actual moving day to allow for important communication.
5. Let there be light (and heat). Allow for overlapping services with electric, gas and other utilities to avoid shut-off while you are still in residence.

(Steve Yapp has been a franchise owner of PODS (Portable On Demand Storage) for three counties – Ventura, Santa Barbara and San Luis Obispo – since May 2005. For more information, call (805) 644-6503 or visit the websites: http://www.pods.com/ventura.aspx, or http://www.pods.com/santabarbara.aspx, or http://www.pods.com/sanluisobispo.aspx

As a property investor, property purchases are likely less emotional and more logical than they are for the average real estate buyer. Even if you’re looking at property investment from a business-minded point of view, though, it’s still possible to overlook some critical factors when it comes to making property investment decisions. With that in mind, below you’ll find some tips for making sure you take care of due diligence before purchasing your next investment property.

For the most part, due diligence can be summed up in one word: Inspection. Nothing stands to save you as much money and headache down the line as contracting a professional inspector to come in and look over a property before escrow closes. Your real estate agent will almost surely have inspector recommendations, but you may also want to check the American Society of Home Inspectors. This organization provides a built-in system of checks and balances since all members must pass exams and meet basic standards. Of course, you’ll still want to call a reference or two—after all, a bad inspection can potentially cost you thousands of dollars down the line.

Have the inspection done after you’ve made an offer and make sure your agent builds in a contingency to let you off the hook should an inspection turn up any troubling information. While you can have an inspection done prior to making an offer, remember that you will have to pay for an inspector, so it may not be the most financially desirable decision.

Prior to the inspection, request a disclosure from the seller. This is meant to alert you to any forthcoming problems that may not yet be detectable through a basic inspection. Try to obtain this information prior to the inspection so that your inspector can carefully examine areas that may pose potential hazards or issues in the near future. Remember, however, that disclosures are not foolproof as sellers may not even be aware of some looming issues.

Now that it’s time for the actual inspection, make sure that your general inspector thoroughly completes all of the following:

1. Check for structural issues (this includes the roof, plumbing, foundation, and pest damage).
2. Check for any heating or electricity issues.
3. Check drainage.
4. Some inspectors check for pest issues, while others do not. If you choose an inspector that does not check for pest control, you would be wise to have a second contractor in to take a look. You will want this inspector to not only look for pests and termites, but also fungus and dry rot.

Also keep in mind, you may not be done after just one inspection; other specialized inspectors may be necessary as well. For example, if the general inspector finds roof hazards, consider bringing a roof specialist in to let you know exactly what you’re looking at. Additionally, to avoid environmental hazards that could potentially cost you big time down the line, bring in an environmental health hazard specialist to check for things like mold, lead, and asbestos.

When all is said and done, ideally you will not find any major problems, let alone a deal-breaker. If your inspection does turn up problems that will need to be addressed, you can negotiate with the seller, who may agree to make certain repairs or lower the property’s selling price. And if you do find a deal breaker, as unfortunate as it may seem at the time, rest assured that the price you’ve paid on inspections has likely saved you thousands down the line.

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By Ernest O’Dell

Guerrilla warfare is the unconventional warfare and combat with which a small group of combatants use mobile tactics (ambushes, raids, etc.) to combat a larger and less mobile formal army. The guerrilla army uses ambush (stealth and surprise) and mobility (draw enemy forces to terrain unsuited to them) in attacking vulnerable targets in enemy territory.

Guerrilla marketing utilizes many of the same tactics in the business world in the sense that small companies and individuals must use stealth and surprise to gain a market advantage. Not only S&S (Stealth & Surprise), but you must become adept at drawing your competitor into unfamiliar terrain to gain the “upper hand” on them and capture the lead in market share.

Guerrilla means “little war” in Spanish and was coined during the Peninsular War. The concept acknowledges a conflict between armed civilians against a powerful nation state army. This tactic was used by the Viet Cong and the North Vietnamese Army during the Vietnam War. Most factions of the Iraqi Insurgency and terrorists use some form of guerrilla warfare.

In your business, whether it is an “Internet” based business, a used car dealership, a real estate agency—or any other type of business—you must be quick and agile and use unconventional marketing tactics against the bigger corporations.

Can you make a sizable “dent” in the marketplace? Yes. Can you make an impression on the big competitors? Absolutely.

In any business, “guerrilla” defines the smaller business as being able to move on a moment’s notice, and be more agile than the cumbersome giants in the industry. You have to be like a small wolverine up against a pack of wolves: you have to be lean and fast… otherwise, the corporate giants will have you for lunch. And I don’t mean that they’re going to invite you to their corporate galas: they’re going to pounce on you and try to force you out of business.

When it comes to the Internet based portion of your business, you’re going to run up against the likes of some big names in the Internet Marketing sector. I won’t name any names: you already know who they are.

When they find out what you’re doing and how you’re taking “market share” away from them, they’re going to “cry foul” and bad-mouth you on their forums and try to steer customers away from you. But you will have already had the “jump” on them, and they’ll never recover.

When you raise the eyebrows of the big names in the IM community—and trust me, you will—then you will know you’ve successfully learned, and implemented, “black ops” guerrilla marketing strategies for your business.

Your Size Is Your Strength

I’m happy to tell you that your size is an ally when it comes to your marketing efforts against bigger competitors. If you’re a small company, or a single individual, you can utilize the tactics of guerrilla marketing to your advantage—and your competitor’s demise. You can leave them in the dust of your trail, scratching their heads, wondering, “How did they do that?”

You Must Have Quality

What you are offering is quality: whether it is a product or a service, or both. Even the best marketing efforts in the world won’t motivate customers to purchase from you more than once if your service (or products) are lackluster. In fact, the most brilliant marketing campaign can speed the demise of a poor product or service, since people learn of the shoddiness much quicker. And with “word of mouth” , “word” will eventually “get around.”

Be Aware of Your Surroundings

The more attention you pay to your market and your competitors, the more agile you will be when it comes time to “strike” an attack. A great deal of marketing isn’t merely executed poorly these days—it’s just not executed at all! Pay attention to what your competitors are doing… and what they’re NOT doing.

There Is No Substitute For Excellence

Guerrilla marketing on the Internet dictates that you comprehend every facet of marketing and your industry. It demands that you employ your tactics and strategies with excellence. There is no room for error.

To understand the nature of this idea, it may be useful to examine the real reasons why Japan was able to knock the United States off its perch as world leader in the manufacturing, TV, stereo, automobile, and electronics industries.

For years, industry in the United States has been able to turn out excellent products and services with a low percentage of rejects. Occasionally, you might get a lemon, but it was rare. The buying public wasn’t really surprised by it, and eventually became accustomed to the concept. However, word of mouth got around and usually took care of the cause of the “lemons.”

After Japan suffered a monumental defeat in World War II, their products sold here in the United States carried an equally defeated stigma of poor quality. For years the phrase “Made in Japan” was a detriment to the product, and would elicit a smirk from sophisticated consumers. (Think Chinese: they now have the same problem. They turn out crap.)

How did the Japanese overcome this problem? They decided to fly in the face of the economic truism that allowed for a small percentage of inferior products and services. They figured if the public would accept, let’s say, a 5% inferiority rate in products, it might happily embrace products of which fewer than 5% were unacceptable. But according to economists, this would cost a lot of money. Perhaps that is true for big corporations, but it’s not true for small companies and individuals.

The Japanese really had no other choice: they had nowhere to go but up. They had no choice but to become successful. They were practically bombed back to the Stone Age, and figured it was worth the time and expense. They improved the quality of what they made to the point that right now, they have less than 200 rejects per million units. That’s less than 0.0002%!

Is it any wonder why we are seeing many of our industries failing because they’ve been conditioned to believe that 5% rejection rates are acceptable? Is it any wonder why our own auto industry is in trouble because they haven’t figured out how to “trim the fat” and make themselves “leaner and meaner” and more productive? Perhaps they could learn a lesson or two in guerrilla marketing.

Guerrilla marketing involves recognizing a myriad of opportunities and exploiting every one of them. Like the Japanese, don’t overlook a thing. Don’t discount or dismiss any tactic or strategy that you haven’t tried.

In the marketing of your product, you’re going to encounter problems and challenges from time to time. These are going to be opportunities for you to come up with a winning solution, not only for yourself, but also for your clients.

You won’t have the luxury of neglecting the smaller opportunities, nor overlooking certain tactics and strategies. You’ve got to go “all out.” Because if your competition uses a tactic or strategy that you wrote off as useless, you just might find yourself in the trail of THEIR dust! You don’t want that to happen!

To your success!
Ernest O’Dell

Ernest O’Dell is the moderator of the Guerrilla Internet Marketing group on Yahoo Groups and author of Guerrilla Internet Marketing and Guerrilla Real Estate Marketing, public speaker and Director of Public relations for DMS Group Publications. He can be contacted personally at guerrillainternetmarketing@gmail.com

The “Black Ops Manual In Guerrilla Internet Marketing” will be due out before Thanksgiving on Amazon.com. Watch for it!

In an effort to increase your exposure through social networking (web 2.0), a new group has been created on Yahoo Groups at Guerrilla Real Estate Marketing.

It is open to all interested in learning guerrilla tactics for the real estate industry.

All messages will be distributed by email in a threaded forum format and you can reply to group posts by email. This will speed up the process of dialog and you won’t have to log into the web to access the messages, unless you wish to do so.

You will be able to promote your listings to the global market, and also promote any blogs, sites, or MLS listings you choose.

If you have any questions, feel free to contact me at guerrillarealestatemarketing@gmail.com

Thanks,
Ernest O’Dell – Author and Publisher
Guerrilla Real Estate Marketing
http://www.facebook.com/ernest.odell
P.S. We will be getting national media exposure within the next 30 to 60 days, so join now and get some discussions going and you will be able to get some exposure to your web site(s).
====================
Guerrilla Real Estate Marketing (2nd Edition) is now available in PDF format for immediate download.

Discover the “dirty tricks” and secrets of marketing your real estate business in today’s economy.

Full of free tools and bonuses, this is one book real estate professionals need in their reference library.

http://bit.ly/kLfCQ

Guerrilla Real Estate Marketing by Ernest ODell – Your Secret Arsenal For Making Extreme Profits In Your Real Estate

Business, is packed with tools, tips, tricks, strategies and tactics for making extreme profits in your real estate business.

http://bit.ly/kLfCQ

My month of homelessness is coming to an end. After a month of couch surfing, “house sitting”, vacationing and taking up quarters at my friend’s zoo, I am going to be a full-fledged member of the Grown-Up Club begining tomorrow and my dues will be in the form of a 30 year fixed rate mortgage.

In hindsight, maybe I should have just extended my lease for another month so I’d only have to move my crap once instead of twice. No, I couldn’t have endured even the thought of throwing more money away. Instead, I got by with a little help from my friends while in escrow, which is a very scary word that sends shivers down my spine.

First stop was atop my friend’s couch for a few nights. Even though her couch was seconds from work, I managed to be late each and every time. Then, it was to take up residence at the zoo. My friends, who should have the last name of Tanner because they have a very FULL HOUSE, invited a stray like me into the home they share with two dogs, four cats and a ferret. They may have had more animals but seven was all I saw, though never once at any given time.

 After the zoo, I took a well-deserving vacation to NYC to see Paula Deen and her boys, Jamie and Bobby at the Food and Wine Festival. It was a wasted trip since I had fully intended to profess my undying love to Mr.Bobby Deen, that was until his mama showed up to introduce to one and all her future daughter-in-law, some young actress that no one has heard of. Her name escapes me.

Broken-hearted and with H&M merchandise in tow, I made my way back “home” to “housesit” for my friend who is out of the country until my closing date. Totally convenient.

This time tomorrow I will be writing my name over and over again in exchange for homeownership. Must invest in a rubber stamp of my signature to speed the process along.