Headline of Disbelief

A headline today: Ford earns $2.7B in 2009 (EARNS--read it again!) If you read additional details it appears that this may not be sustainable but when was the last time you read something positive about the auto industry? (unless it was related to Cash for clunkers or the recent purchase of Saab by Spyker). I was pleased to see that headline. They did not sell out to the Government and they've been producing some great cars of late (finally we get the European Focus!) including the 41 mpg hybrid Fusion (Car of the Year winner). What's next for Ford? Hopefully the union won't destroy the company (ditto for the underfunded pension plan) and the new models continue to sell well--though the Mustang is currently losing the sales 'race' with the new Camaro. Time will tell; guess we need to re-examine the old ad tagline "Have you driven a Ford, lately?"

The Panic of 2008 in a nutshell...

I received the following link in an email newsletter. I am amazed at how clearly this shows 'what happened' over the past few years. I have to agree at their summation that it is truly the government that failed us. Are you surprised to read that? Both parties have failed us. Again the time is NOW to boot them all out. We are at a critical point in the history of our country. It's time to clean house and it's time to enact term limits to get rid of the 'us and them' mindset that so clearly has infected Washington (not that our own Georgia legislature has the guts to enact ethics laws and limitations on lobbyists either, but I digress). You truly want change? Let's get some new blood and new ideas in Washington. It's time for a voter revolution! God Bless America...!

What does the President Read?

I received an email with a photo of PrezBO holding a book called "The Post-American World". The tone noted that it was written by a Muslim and was more or less anti-American (and you could allude to the fact that they were shaming Obama for reading it or it's proof of his Muslim and/or anti-American leanings). I clicked on the Snopes Link (and yes, I know that they have a liberal bias) but thought I would also go ahead and click to Amazon.com to read a review of the book.

I must say that based on the review (and the Q&A between the book author and fellow author Thomas Friedman) that I too would read this book! We need to be more competitive and I like Friedman's commentary that the USA needs to be on the cutting edge of energy technology (clean coal emissions, for example) so that we can sell that technology to rising nations like China. One 'takeaway' from that Q&A was a lightbulb comment--if we gave one standard 60 watt bulb to the next billion people that will be born we'd need 20 new 500 megawatt coal burning plants. WOW. SO, hopefully we have scientists and people much smarter than me working on clean technology solutions so we can continue compete on the global stage!

BoKnowsClosings...

This is going here as well as on my other BoKnows blog... My 2 cents on closings today! Cheers, Bo

I talked a bit about the new Good Faith Estimate and HUD-1 Settlement Statement for residential closings in my last newsletter. Yes, it's official and any new loan 'started' in 2010 will have the new GFE and new HUD. Expect a lot of questions and confusion on this but as with anything new, 'this too shall pass'. What I want to talk about today is somewhat self-serving but very important for the future. Why is choosing an attorney important? For that matter, why is closing a loan with an attorney important? First off, it's not all about fees. Yes, I know how self-serving that statement is. When you look at a new GFE or HUD-1 you'll see all of our fees combined are almost $700 (without lender's title). I know one firm that will do all that for just shy of $300. They may be a great firm, but we never set out to build a high-volume closing firm. I've been there--the lobby full of people waiting to close, delays, tempers and it seems that customer service is tossed out the window. When we chose to open this firm in late 2008 we knew that's not what we wanted.
So our fees are about the same as most closing attorneys out there and we all have to quote the same title insurance rates as dictated by our title companies. If the playing field (e.g. 'fees') is level, more or less, why choose us? We are all veterans here. We can handle your first-time homebuyer's questions with ease (and patience!). We can handle "issues" at the closing table (we've all been there before) with tact and finesse (yes, even me!). For that matter, we don't let files 'lay around' until the day before closing so there really shouldn't be surprises on closing day. Come see us again and I know you'll be pleased. And remember not to think of us as 'just' an in-town firm--we can close all over metro ATL!
Final topic--why close with an attorney at all? This is less relevant for purchases but there are a lot of options out there for consumers. Many large national lenders use 'closing services' to close transactions and issue title insurance. Yes, I've closed loans in homes (even a Starbucks or two). However, there is a huge difference between us and these companies. We believe (as do most Georgia real estate attorneys) that a closing should be handled by the firm from start to finish. We run (and clean!) the title, close the loan, issue the title insurance and fund it through our IOLTA (trust account). This should be the bare minimum that a licensed Georgia attorney should do but some lenders insert themselves into the transaction. A witness-only attorney is just there to watch you sign documents--where are they when you have questions or issues after closing? An out of state 'title company' or 'escrow provider' won't help you clear up a messy title with open loan deeds--if you can even get someone on the phone or in the correct department! The bottom line? Even if you don't choose Harris Wagner Law Group, do yourself a favor and choose a licensed, LOCAL Georgia attorney to handle your transaction. You could even say the same thing about lenders and agents as well. Choose wisely as your home is the largest investment you own!

Quick take on the economy

I have different items to work on today so here's my economics report for the current period: unemployment is still dragging down our country. In Georgia, it's really not going to be much better in 2010 as so many of our jobs were lost due to the housing implosion. SO housing is still going to drive this recovery--or not. If you have a mortgage in the mid-5's or 6% (or an adjustable that can 're-set' in the next year or so), you need to think about refinancing by Summer. Ditto for home purchases as there is not much time left on the homebuyer's tax credit. Housing starts are up in the South and competition for homes (new or 'used') will pick up again soon so act now before the crowds start bidding up prices. Act now before inflation kicks in and rates go back up (take a look at both the PPI and CPI if you need confirmation on that). Act now to get out from under the burden of rent!

That dreaded "I" word...

Yes, INFLATION. Anyone alive in the Jimmy Carter era just visibly shuddered (I know I did)... What about inflation? Well, the Fed has kept rates incredibly (artificially?) low in order to spur on the "recovery" (again in quotes due to the low rate of job creation) and certain sectors have experienced rising costs. The Producer Price Index (PPI) is up, which would typically bring us a rate increase--ditto for consumer goods and energy pricing. SO if Inflation is coming (or is already here as some say) we would typically see the Fed raising rates after this week's meeting. What's that mean to you and me? Well, things seem to be improving relatively quickly, except for jobs, though there was a small drop in November's unemployment numbers. While energy prices are up the price of oil and gasoline has dropped recently. In essence there are a lot of positive things happening (even increased consumer spending was reported!) but there is still a 'wait and see' feel to our nation. I don't think anyone will feel comfortable while jobs are still getting slashed (which will continue into 2010 per many Economists) and until this health care fiasco is sorted out (put it this way--if you were a small business owner, would you be hiring right now with the uncertainty of being in business with the possible changes on the horizon?). Likewise, we have a long way to go despite all the 'dog and pony' shows going on about banks. There are few modifications taking place and the ones that are proceeding aren't helping to stop the flow of foreclosures. And to add to the misery, we STILL have at least a year of adjustable rate mortgages 're-setting' (possibly two) due to the large numbers of 5/1 ARM refinances that happened... well, just over 5 years ago. So what of inflation? If things keep improving and (as noted in several postings) if we continue 'printing money' the Fed will HAVE to raise rates. Will the struggling economy be able to take that shot? As always, time will tell :) Good luck, God Bless, Be safe... Bo

Why the IRS should go away!

I have always noted that I am a fan of the "Fair Tax" as it levels the playing field for ALL Americans--Bill gates would pay the same tax rate on a Ferrari as I would pay for a gallon of milk, not to mention people who hide their income and don't pay their 'fair share' (to coin a Liberal catch-phrase). Spare me the details about the working poor being penalized as you probably haven't read the bill (someone correct me, was it HB 5 or 25 or something??) and don't understand the REBATE they would receive... But I digress. If you are a FAN of the IRS (or even if you aren't), please read this article of the IRS and how they managed to pour salt in the wounds (acid?) of a hard-working American. God Bless this family and I pray that their ordeal is over. Are YOU next?