The Christmas Spirit

For many, the Christmas season is an exciting, reverent time of the year. The Christmas Spirit derives from a combination of feelings, traditions and memories accumulated over the years. These may include family get-togethers, a candlelight worship service, the gleam in a child's eye at the sight of a gift or when first giving at Christmas. It may be the excitement of wrapping presents and putting them in that "secret place" or writing Christmas wish letter to Santa. It might be the first snowfall of the season, friends gathering for the Christmas Eve service, a Christmas Day phone call with grandma or Salvation Army bell ringers.

For some, the Christmas season starts with Thanksgiving Day Christmas Parades, shopping the day after Thanksgiving and selecting the perfect Christmas Tree. It may include making Christmas decorations, making Christmas cookies, hearing Little Drummer Boy for the first time this season or giving at Christmas time by working in a soup kitchen or contributing to a charity.

I have always thought of Christmas time, when it has come round, as a good time; a kind, forgiving, charitable time; the only time I know of, in the long calendar of the year, when men and women seem by one consent to open their shut-up hearts freely, and to think of people below them as if they really were fellow passengers to the grave, and not another race of creatures bound on other journeys.  ~Charles Dickens

I'm with Charles, but why limit ourselves to the holiday season?  Why should we all not strive to maintain the Christmas Spirit throughout the year?

The Christmas Spirit begins at home. We have our parents, our children, and our brothers and sisters - who perhaps irritate us the most - and we begin our practice of loving-kindness and compassion with them. Then gradually we extend our compassion out into our greater community, our country, neighboring countries, and finally, the world.  The drunk who just got on the bus, the teller at the bank, the janitor at work, my eighth-grade girlfriend, the babysitter when I was a kid, the soldier in Iraq, the president of the United States and yes, even those who seek to do us harm.  I believe this is the real Spirit and Message of Christmas.

Let us all open our hearts and minds this season and throughout the coming year.  Let us show compassion, turn the other cheek, volunteer, give love, be slow to judge and lend a hand to someone in need.  We may be surprised how the Christmas Spirit returns the favor.

Thank you all for your friendship, business, love and support this year and years to come.  Wishing you all a very Merry Christmas and Happy New Year!

Buying a Foreclosure Could Cost You Thousands More

The home down the street you've always loved is on the latest "Foreclosure List".  You think to yourself 'hey, if I wait until it goes back to the bank, I'll get it for a WAY better price', right?  WRONG.  Many people believe that the best deals in real estate today are bank-owned properties, also called foreclosures.  It is true that foreclosures are often attractive to prospective buyers because they are commonly priced below market when compared to similar, non-distressed homes.  True, there are some great deals to be had in the foreclosure market, however, banks have recently realized that they take a greater loss by going through the foreclosure process, and naturally, they build those losses back into the list price when the property goes back on the market - passing the costs along to the consumer.  They've recognized the time-value of money and have become much more likely to discount a property up front (short sale) to preserve assets that would go toward the rehabilitation of the property once they take ownership.  By waiting for that perfect property to come back on the market after the bank takes possession also opens up the possibility for greater competition.  The more interest in a property, the more offers, the higher the sale price.


A short sale is a property offered for sale at a price that is below the debt currently owed on the mortgage.  All short sales are subject to third party (bank or investor) approval.  'But aren't short sales difficult to complete?' Well, this was the case years ago when banks weren't prepared for the tidal wave of defaults that ensued, but they've now realized that it costs them far more to foreclose than to take the loss up-front and accept a short sale - even if it's thousands, or hundreds of thousands - of dollars less than the current debt.

'But doesn't this usually take months to complete?'  Maybe.  It depends on the type of loan, and there are two possibilities:  delegated and non-delegated.  With delegated loans, the investor (private individual, foreign entity, mutual fund, etc.) has authorized the loan servicer to negotiate on their behalf.  Many banks sell loans as packages to outside investors but continue to "service" the loan, accepting the payments from the original borrower for a fee.  Short sales related to delegated loans convey relatively quickly, sometimes as fast as 30 days.

Investors in non-delegated loans have not authorized the debt servicer to negotiate on their behalf, so each interested party must be consulted prior to the sale's approval.  These are the short sales you hear the horror stories about that can take months to complete.  Even so, if a buyer's able to acquire a property at a 30%-40% discount, many are deciding it's worth the time.  The only problem is that it's impossible to know what type of loan is attached to the property without presenting a written offer.  If you receive a response in one or two weeks, it's probably a delegated type.  If you present an offer and don't hear anything for a month or longer, it's safe to assume it's a non-delegated loan.

Most investors today, like the banks, have realized that they minimize loss by proceeding with a short sale and have begun authorizing the banks to conduct those negotiations, making it easier for all interested parties to proceed with a relatively prompt sale.

When you think about it, if you're truly interested in getting a 'screaming deal' wouldn't it be worth waiting 6, 7, or even 9 months if it meant you could buy a $400K home for $280K?  I think most buyers would say YES!

Whitefish, Montana Makes the Bigtime With ESPN!

http://espn.go.com/action/freeskiing/blog/_/post/5989402/investigating-whitefish?as

Having lived in Whitefish for nearly a decade now, it's hard for me to believe how well known Montana's Flathead Valley has become.  Whitefish Mountain Resort was just featured by ESPN for the incredible skiing, low-key admosphere and relatively crowd-free lift lines.  Wait a minute!  Relatively crowd free?  I waited for 10 minutes over the holiday weekend!  That's not crowd free!

When my family and I originally moved here, one of the things that was a great draw was the lack of crowds (I know, ironic that I went into real estate, right?).  It seems now, however, that everyone wants to be here, or at least that how it feels to me, who is used to skiing into the lift line and basically right onto the chair.  Like Yogi Berra says "Nobody goes to there anymore, it's too crowded."  But, having been an agent who has almost made it through one of the toughest markets of all time, I am grateful and WELCOME the crowds with open arms.  After all, it's the buyers that allow us to enjoy the careers we do.  Without them, myself and several of my colleagues would be out of work permanently.  And the lift lines, for all the complaining the "locals" (transplants, myself included) do, the lift lines ARE relatively un-crowded.  In fact, though 10 minutes may be a long time for those of us who don't vacation here, it's really nothing compared to most other Rocky Mountain ski areas around the holidays.

And when you really think about it, what's occuring right now all over the entire intermountain west, in a way, is a great migration.  People are flocking by the tens-of-thousands every year from the cities where they retire in search of a different way of life.  A lifestyle, if you will, away from real crowds and the constant buzz of the city.  All they want is the same thing all of us do who live here.  And why shouldn't they?!  I moved here from a big city to "get away" and that's exactly what they're after.

So now (and I'm talking to ALL you resort property agents) when you're sitting in "traffic," or waiting at the chairlift for 10 minutes or standing in line at the grocery store...take a deep breath and remind yourself that you LIVE where most people VACATION!  And that, plus the fact that many of these people will become buyers, should help you make it through another season of "out-of-towners" with nothing but a HUGE grin.  You live in a spectacular place and as an agent, you ought to be ENTHUSIASTIC about where you live!  After all, if you're not enthusiastic about it, then how can you expect your clients to be?

John Middleton works for National Parks Realty (www.NationalParksRealty.com) and lives with his family in Whitefish, in the pristine Flathead Valley of Northwest Montana.  You can find out more about John and the area at his personal website:  www.FLYREELtor.com.

Do You Feel the Draft Yet?

The weather outside is frightful, but your home energy bills don't have to be.  Up here in Whitefish, Montana, when Old Man Winter comes, he comes with a vengeance - but that doesn't mean you have to suffer.  Ever heard of a green mortgage?  And I'm not just talking paper.  I'm talking about an EEM, or Energy Efficient Mortgage.  In a nutshell, an EEM allows a buyer to borrow more than 80% of the property value (sometimes as much as 10% of the purchase price) to provide capital for energy efficient improvements.

As the single largest housing expense after a mortgage payment, your utility costs can have a direct impact on how large a mortgage you can afford.  You can save money on the cost of utilities by purchasing new enerty-efficient heating and cooling systems or by making home improvemens such as weatherizing and insulating older homes and these improvements can save you money through lower utility bills.

As a new or current homeowner, you may be able to use FHA's EEM to finance the cost of these improvements.  In the following example, a homeowner can afford to purchase $33,000 "more home" if the home is made to be energy efficient.  As you can see, even with the additional $33,000 purchase price, the total monthly payment including utilities is less expensive than the more affordable home.  You can learn more about EEM's at www.energyefficientflathead.com or www.flyreeltor.com.

Thinking Retirement? Don't Miss Montana's Flathead Valley - "The Last Best Place"

For many people, retirement is a no-brainer.  They finish their career and end up living in the same town they spent their final working years.  Others, however, feel the urge to reconnect with nature and one's self and find themselves seeking out beaches, rivers or ski slopes that are far enough removed from "the old" but close enough to stay connected with friends, family and many aspects of the business world they left behind.  "A lower cost of living is the major factor behind retirement mobility," says David Savageau, author of Retirement Places Rated.  "I don't know anyone moving from Kansas to Hawaii."  So how does one make the right decision and help stretch the nest egg?  Here's a few things to consider when determing if the "Last Best Place" is the right spot for you to retire:

• Taxes.  Tax rates fluctuate considerably all across the U.S.  From income tax (there are currently seven states that don't have an income tax) to property tax to sales tax, Montana has some of the lowest rates of any state in the union.
• Health/medical care.  By virtue of default, your healthcare rates will increase with age.  Research your top spots to make sure they have adequate health care facilities nearby.  Make sure you can find a doctor able to treat any condition you may have and "...call and see how difficult it is to get an appointment," says Michael Perskin, a geriatrics physician at the New York University Langone Medical Center.  "If you're on hold for more than 10 minutes or you leave a message on voice mail and you don't get a call back, then you know."
• Proximity to friends and family.  For many retirees, it's important to be involved in their children and grandchildren's lives, and being located next to a central hub that has easy access via airplane or train travel is a big draw.
• Recreation.  Now that your free from your job you have the flexibility to tele-commute (for those who continue to work part-time) or spend your days pursuing any leisure activity you see fit.  Golf? Fly fishing?  Hiking?  Skiint?  Art galleries and fine dining?  You name it, Montana's Flathead Valley has it!
• Downsizing.  Downsizing to a smaller or lower maintenance property can help stretch your nest egg a long way.  It also frees up time that would otherwise be spent maintaining a property so you can get out and play!  It may also allow you to buy two smaller low or no maintenance properties allowing the "snow-bird" lifestyle.  Montana in the summer and Arizona in the winter!
• Weather.  How do you feel about shovelling snow?  We do have a long winter here, but with warmer climates also comes large air-conditioning bills.  The Flathead Valley has 4 distinct climates and the warmer months are mild in comparison to summer in more arid climates.
• Basics.  Crime rates?  Low.  Healthcare facilities?  High quality.  But what about libraries, communication access, shopping and religious institutions?  Covered.  Plus we have Glacier Park International Airport with direct daily flights to most major metropolitan areas in the west.

I think I've covered the basics, but it's impossible to make a decision of this magnitude without experiencing Montana's Flathead Valley in person, first hand.  Make a plan to get here, then make a plan to stay.  I can help, I live it every day.  Don't just buy real estate - invest in a way of life!

For more information on Whitefish, Montana or the greater Flathead Valley, Montana visit http://www.flyreeltor.com