Part 2: The New and Improved GFE? How to Protect Yourself

In my last post, I began to tell you a little about my adventure with the "Good Faith Estimate" or GFE for my home loan.  Here, as they say, is the rest of the story:


So I called my friendly Chase consultant AxA.  Knowing that this was not the final GFE, I also knew that it could still be changed and we were not locked in to these fees.  I left a message and sent an email.  Shockingly, I got no response.


Here is where it gets interesting.  Life happens to us all, and time passed with me assuming that it would be taken care of.  After all, I DID send an email.  


The "final" GFE arrived in the mail.  I opened it with curiosity, fully assuming that everything would be correct.  


Bottom line?  "Total Estimated Settlement Charges:  $4,015.47.


What. In. The. FLYING HELL?
(Actually, at this point I might have used stronger language, but this is a family show.)


When I called my good friend AxA, he said "Oh.  Yeah.  That's wrong, but it's no big deal.  It'll be correct at closing.  Just sign the paperwork you get and we'll schedule it."  
No, I said, Nothing will be signed until we have corrected paperwork.  Re-do this and send out a correct GFE and we will review it and schedule closing when it is correct.


Here's where he challenged me. First, a BIG, annoyed sigh.  Then: "What's not correct?"  Was this arrogance?  Ignorance?  I suspect a combination of both.  So, I went-line by line- down the page to tell him what was not kosher.
1.  In our initial phone conversation, he said there would be no points.  Lo and behold- there's an 1/8 of a point charge.
2. In our initial conversation he had claimed no origination fee.  Guess what?
3. Hazard insurance:  $1400.  First of all, we already spoke of this and he knew that insurance was not escrowed on our loan.  Secondly, $1400??!!!  Even if we didn't already have (less expensive) insurance, I might want to shop around for a better rate.
4. Title Insurance: $894.95.  Not!   This is a reissue of title insurance, first of all, so the rate should be greatly discounted.  Secondly, you can check rate cards that are publicly available from any title insurance company, and for the amount of our loan, the highest rate I found was about $500.


He challenged me as much as he could until I said: "Listen.  I happen to be a Realtor, so I know how to read a GFE, and this one is WRONG.  This is not acceptable."


THEN- and this might be my favorite quote- he told me: "Don't worry about it.  You won't have to bring this to closing, it'll just get rolled into the loan."


This got me thinking.  Not too many people are aware that they have options when it comes to these things.  This is part of the reason that the mortgage industry is such a mess.  Many people would be so relieved to get out of their ARM and into a fixed rate that they might just accept what he said as the way things are.


But, think about this:  if I didn't question him, we would be paying interest over 30 years on over $2000  worth of charges that shouldn't even be there.  


You do not have to be "in the business" to shop your rates for title insurance.  But how many people know this?  And title insurance is just one example of the services that the consumer may choose.  Interestingly, after this conversation, my husband got a call to schedule our closing time.  "We're all set to close!" said the chipper voice from the title company.  
Well, believe it or not, my husband and I communicate regularly (!).  AxA was planning on just going around me to close out our file rather than do his job and fix the problem.


A few tips if you are going to Refinance or shop for a new loan: 

• Take copious notes.  Write down names, dates, time called, details discussed.  Do not be afraid to ask the person who answers the phone to spell their name for you or to repeat what was said so that you can write it down.  This was good info for me to have when I spoke with AxA.  When I told him I took notes, he backed down and took off the points charged.
• Follow up with email.  Better still, if you can follow up phone conversations with email, then do it.  Just a simple "Per our conversation today at 2pm..." and then what you have in your notes.  It's also a good idea to set your email to have a "return receipt" so that you know it was received and opened.  KEEP all emails that go back and forth.
• Don't be afraid to ask questions and challenge the answers!  So many of us are reluctant to question the bank because we assume they know what they are talking about and are telling us the truth.  But, as in my situation, paying for a couple thousand dollars over 30 years (plus interest) that should not even be charged is ridiculous.  Suggesting "rolling it into the loan" is just stupid when it doesn't even belong there in the first place.
• Do NOT sign anything until you are satisfied that your loan paperwork is correct.  If I had just waffled and signed the loan docs stamped "sign and return", then we would have been locked into all of those erroneous charges.  

Bottom line:  my friends, if you need assistance understanding your GFE, Call me!  Or call any licensed realtor to help you understand what you are reading.  You have the right to know what you are signing and agreeing to, and what charges you do and do not have to pay!

The New and Improved GFE?

A “Simplified” GFE?

Making the Good Faith Estimate More Transparent May Make it More Difficult to Close

I have been living in the same home for almost 8 years now.  It is cozy and has enough room for my family.  We have designed it to suit our needs and updated or upgraded paint, bathrooms, basement.  

When we bought our home, we got a great deal on it (for the time!), and we were able to put down a pretty decent downpayment after selling our previous property.

So, our loan isn’t big.  It was originally with ABN-Amro and along the line it was purchased by WaMu.  We had no problems with that, and in fact, when  we were sent a mailer about doing a re-fi several years ago for a flat fee of $495, we decided to go for it.  We were smart- we got an adjustable rate (not the smart part...) mortgage, took a little cash out, and went on with our happy lives.  

We are thankfully nowhere near being upside down on the house (that’s the smart part), but one of these days it IS going to adjust.  Mind you, this won’t happen for at least another year.  With interest rates being low, we decided now would be a good time to lock in our rate.  If we could do that now, we would drop the interest rate down over a point, without changing our payment.  Score!

Enter Chase Bank

In the meantime, Chase acquired WaMu.  (Cue the music: Duh-duh-DUHHHNNNN!)  People have many different stories to tell about their experience with Chase Home Loans.  This is mine:

It started with a call to the 800 number on my loan statement to try and get the right department.  This was an adventure in its own right and might even be worth another blog.

Once I got through to the correct department, I spoke with a very nice man whom I’ll call AxA.  AxA was very informative.  Per the notes I took during this first call, he told me that it would be no problem, we might even be able to lock in a rate without an appraisal!  Because we are already Chase customers, there is no origination fee!  There won’t be any points!  We have great credit!  He! was! very! Enthusiastic!!!  In double time, with me furiously taking notes, he said that there would be a processing fee of $750, but we would get some of this back at closing.  It turns out that we would need a full appraisal, but that was to be expected in this market.

The Good Faith Estimate Arrives

Per the new regulations and Truth in Lending, a Good Faith Estimate is sent when you originate a home loan, and then a final one is sent just before closing.  There are certain fees that a consumer is able to “shop”- among them title insurance, home inspection and a couple of others.  Because we are not purchasing a different home, inspection is not necessary.

I tore into the paperwork to see what lay inside.  This document is dated January 15- the new Truth in Lending went into effect January 1, so this would be my first glimpse.

I glanced down the page.  At the bottom, “Summary of Charges:  $2560.47”

What.  The.  Hell?

Origination charges 1510.59.  “All other Settlement Services” 1049.88.  I don’t think so.  

Next:  RealtorJenn gets to the bottom of it...

How Many Followers Can One Person Handle?

It seems to be a hot topic in the past few days.  Is it good to have a lot of followers on Twitter, or just a few?
I was first intrigued by the video blog of Steve Witsen.  He likens having a great many followers to trying to make an announcement to everyone at a U2 concert.  You'd have a lot of people to tell your message to, but most of them wouldn't listen.  Nor would they care.
By having a couple hundred (or less!) dedicated followers who are truly interested in what you have to say,  you target your message to those for whom it is relevant.  Lightbulb moment!
Another worthy blog that shares this sentiment and expands on it is that of Aliza Sherman on WebWorkerDaily (10 Things to Avoid in Social Media).  #8 goes a little something like this:

"Avoid the numbers game. Sure you can use automated following tools and maybe get a slew of people following you back. But they’re not listening. They don’t care. I’ve always said that I’d rather have 100 friends, fans or followers who care than 1000 who ignore me.  Social media is not about the big numbers but what you do with the numbers you have — and what they do in return. Devoted actions of a few can have an exponential impact, far greater than inaction by many."

This game seems to change daily, so keeping up with it is at turns exhilarating and exhausting.  But somehow, the conventional rules of social interaction and traditional etiquette still hold. (Thankfully)  Building relationships and trust takes time and attention.  Or as we used to say "If you want a friend (follower, tweep, connection, link...) , be a friend."

Pending Home Sales Down- Not the End of the Trend?

NAR reported yesterday that pending home sales were down by 16% in November over October.  After steady increases, this may come as a bit of a shock to some consumers.  To others, it may seem like the inevitable fall after so many months of gain.
But, what does it really mean?  The Pending Home Sales Index is a forward-looking indicator of how the real estate market will be doing in the next couple of months.  It measures how many sales contracts have been signed with the intent of closing, usually within the next 30 to 45 days.
Does this drop mean that the market is drying up?  Just when recovery was on the horizon, are consumers baling out?
Hardly.  A closer look at the numbers reveals that buyers are still very interested in getting that home.  While the numbers dropped for November over October 2009, they are still 15.5% higher than November of 2008.  And those of us lucky enough to live in the Western region (that's you, Colorado) aren't faring bad at all: the pending home sales dropped by a mere 2.7%, still 21.4% higher than November of 2008.

Want to know more about what's happening in YOUR neighborhood?  Contact me today for a thorough look at the trends on your block.

Living Your Brand: Lessons Learned from Tiger Woods

Unless you've been living under the ocean for the last month, you no doubt have heard of the foibles and tribulations of Tiger Woods.  There are lessons to be learned from this frenzy of mass information.  We live in a world where no secret goes untold.  The more exposure one has in mainstream media, the harder they are destined to fall.
This is not some new phenomenon.  I remember being in 5th grade (well before Tiger was born- in fact probably even before his parents met) and writing an essay.  The assigned subject for the essay was to discuss whether it is right to look up to sports figures or actors as heroes.  It's been too long ago for me to recall who it was, but at that time some "hero" actor had been caught doing something.  All I can say for sure is that it wasn't a DUI, a drug arrest, a beating/stabbing/killing of a loved one or embezzling millions.  At the time, I argued that an actor's job is to perform, and it is the general public that holds him up as a hero when we do not know the real person behind the character. 
How times change.
Tiger was nearly everyone's hero.  The squeaky-clean wonder kid's videos from the age of 4 were plastered all over the airwaves as he came into his game.  The dedicated Dad-coach who taught him to love and excel at the game of golf was at his side to see him win time after time.  Remember the "I'm Tiger Woods" Nike campaign?  Children of every color learning golf, loving it, and there being no barriers for them because of this amazing golfer who broke through the barriers.  He won, he gave back, he spread the word about love and fellowship in golf, respect, honesty and perseverance.  He met a beautiful girl from Sweden who was working as a nanny and swept her off her feet, married her and had 2 beautiful babies.  And they all lived happily ever after.
Or not.
The problem comes in his branding.  We all bought into the ideal Tiger with the happily ever after because that is what his dad/coach/manager/PR agent sold us.  And he did a damn good job.
The problem with any brand is that you can't sell a bill of goods that isn't there.  Eventually, your consumers will turn your back on you if you cannot provide what you are selling.
Ask Tiger.  Since November 29, not one single endorsement ad of Tiger Woods' has been played on any network or cable channel.  Not one.  Gatorade pulled it's Tigerade line.  Tiger's popularity ranking among star athletes has dropped to 24th.  And the Congressional Medal of Honor he was to receive for excellence, integrity and dignity?  Nope.
At this point, no one wants to be Tiger Woods.

Have you tried Freak Up dot Com?

So, it's pretty clear that I'm a runner.  I love it, the sweat, the soreness, the athleticism, the (sometimes) comraderie.  This last part wasn't obvious to me until I started to run with my good friend Audge.  Problem is, she lives about 2,000 miles away, so we only get run together a few times a year.
For some reason, finding friends to run with has been... challenging.  My husband runs, and we do run together, but he prefers a slower pace.  Also, it's fun to run with a girlfriend.
Ahh.  Interesting choice of words.
Maybe you've heard of Meetup.  Theoretically, it's a place where you can find people with like interests to do things with, but it is NOT a dating site.  I do have other friends who run, but the one who lives closest is a nurse with odd working hours. (She works 9 to 5, who does that?  Sheesh!)  Ok, by that, I mean she goes out at 5 or 6am, which is akin to hell for me.
Anyhoo-

I had been told by well meaning folk that this would be a good place to find a running group, or any kind of group that might interest me.  I also love to knit and to read (which qualifies me as a dork, but I've accepted this).  So, I gave it a try.

I typed in Women's Running.  On page one, here is what I found:

In the words of Austin Powers "that's not my bag, Baby!"

Yep, that says Boulder's biggest LBGT- Lesbian, Gay, Bisexual, Transgender- Party.  Huh?  Those silhouettes look like strippers.  How is this a running group?  This was the first listing.

Next came Not Just a Walk in the Park.  Ok, this could work.  I clicked on it.  Ooh- their next meeting is... September 9.  'Kay.  Seems this group may have given up, as it started in August and each event had about 1 attendee, aaaand it looks like she organized the "group".  Sorry, Mary.

As I went down the list, I found Bake for Hope (hosting bake sales to benefit breast cancer research, last met in May; wonder why it didn't work?); Denver Single Women's Group (next meeting is tonight- at the Denver Center for Cosmetic Surgery. What's the subtext here...?  Plus, the aforementioned husband might not dig this idea); and Denver Golf Gals (ok, there's still about 6 inches of snow on the ground.).  I might be missing something, but where is the running aspect of any of these groups?

A little further down, I noticed Bodies Built By God.  Not sure what to say about this one, but with 90+ religious wars raging around the world at any given time, I'm thinking God doesn't give a crap about the cellulite on my thighs...  This is apparently a private group, but here is, in part, their statement:

If you thirst for worship and could use a little exercise at the same time, or maybe you are curious about Jesus but have never been involved with church or community, then we would love to invite you to come join Bodies Built By God. All fitness levels are welcome so please give us a call or email to reserve your spot in one of our classes. We would love to have you be part of our community where God works your body and your soul at the same time.

Wow.  Does this mean God is leading the class?  I wonder what he looks like in a leotard?

I'm going to Hell, no doubt about it.

Next I tried Knitting.  1. Practice Chinese in Denver.  2. Tots at 5280- "focused on developing new friendships for toddlers between the ages of 1-3 ".  Do toddlers really have that much trouble finding friends?  Do toddlers even care about finding friends??

Ok, I am ON A ROLL!!  What if I wanted to to join a book club near me?  This is kind of fun... I typed in: "reading."

Really?

I think I'll run alone.

Open House Redux: A Few Tips for Open House Success

In my career, I've had mixed success with Open Houses.  I do believe that they can be a valuable tool for attracting attention to properties for sale.  Especially if the house is newly on the market.  Or, conversely, if it has been on the market far too long, but has not yet had an Open House.
Early in my Real Estate Lady profession, I do what many newbies do.  Having no listings of my own, I offered to help colleagues out by holding their properties open.  This idea was designed to gain exposure for both the new listing and the new agent (me).
These experiences taught me how NOT to conduct an Open House.  But in the spirit of being "glass half full", I will share the DOs:

• DO clean your house!  And not just the weekly vacuum, dust, bathroom cleaning. You've got to do a great big spring cleaning.  In fact, you should do this before you even put your house on the active market. In one of those ill-fated early career open houses I hosted, the sellers decided to start cleaning the morning of the open house.  Potential buyers were greeted at the door with dirty mop water and the teenage son was "cleaning up" by stuffing dirty laundry into his closet.  Wipe fingerprints (and food stains) off the wall, put away the dog bed or litter box (hopefully in another state), take down junior's refrigerator collage.  Serious buyers will open closets, look in drawers, and explore anything behind a closed door.  They do not want to be greeted by a pile of laundry, or an open can of kitchen garbage (another war story for another time).

• DO take any and all valuables with you.  This includes cash, jewelry, keys- and anything that looks shiny and pretty and you actually care about.  That same darling teenage son who was shoving his smelly sweatsocks into the closet was in fact doing in to cover up the real loot- a couple of shotguns and boxes of ammo.  Seems he was a hunter...

• DON'T expect to have an open house every week.  It won't work- neighbors will wonder why your house isn't selling, and you'll get more and more frustrated.  Plus, it's just plain exhausting.  If you hold your house open every weekend and it doesn't sell for 30-45 days, everyone will start to wonder what's wrong with the house.  Your Realtor will know what the average time to sell a home like yours is in your market and will come up with a strategy that will bring the best positive exposure.

• LEAVE. Go away.  Skedaddle!  Buyers do not want to be trailed by an anxious seller when they are looking through their possible new home.  Buyers agents, however, LOVE THIS.  Why?  Because most sellers cannot help but spill out their deepest, darkest reasons for selling: pending divorce, job loss, job transfer, or the fact that they'd be happy to take $10,000 under listing price AND leave all appliances and their antique grandfather clock just to be done with the whole thing.  Even if you don't have extenuating circumstances such as these, it's just less stressful for everyone if you aren't there.  Most open houses are only a few hours long.  Go see a movie, go shopping, go for a hike.  But do NOT stay there.

I hosted another open house where I "made sure" the sellers would not be home.  I spoke to the husband, as the wife didn't speak English, and tried to emphasize the fact that they should leave.  When I got there, the house was dark and quiet, so I set up shop and placed my signs.  Then I heard a strange noise.  Is that water?  Should I call a plumber?  Nope.  The wife was taking a shower.  Shortly after that the husband arrived with teenage daughter and her 3 girlfriends.  I reminded him that it would be best not to hang around, as we had discussed.  He understood.  He agreed.  He left.  Alone.  Teenagers opened up their Burger King bags and had lunch while mom watched TV and the open house visitors walked in and immediately left.  Can you imagine why?

Happy Selling!