Local E-Waste Recycling Helps School

 

 

 

 

 

 

 

Our local High School, Ygnacio Valley High is sponsoring an E- Waste recycling event this weekend.  

This is a fund raiser for the Y.V.H.S. Music Boosters.

The event is absolutely FREE! 

There's No Limit to the amount you can bring. 

They'll be open Saturday and Sunday from 9:00 AM to 3:00 PM.

DID YOU KNOW?

If you took your average sized monitor to the local dump they will charge you anywhere from $35 to 50 dollars per piece just to dispose of it.  (they can't just bury it in the landfill)

The actual recycling is done by a professional company          www.UnWaste.com 

They gather, crush, shred, and then sort the material.  The heavy metals are separated, anything that can be (like the plastic) is recycled, and there is even small tiny bits of gold that your E-Waste contains.  Go ahead and just try and get that out!

 

IT'S CALLED A BENEFIT FOR A REASON

While the event is FREE, our kids would appreciate any donations - every dollar you donate goes directly to the kids music programs!   Let's just say with the recent budget cuts, they really need it!

Your donation is also tax deductible. 

The Music Booster Organization carries a 501(c)(3) designation  - just ask for a receipt!

I'll be helping both days, stop by and say HI!

Need directions?  Here's a map:

View Larger Map

Need more help getting here? 

• Yahoo Maps
• Google Maps
• MapQuest
• GPS Coordinates

Latitude:    37.936717
Longitude:    -122.023184
Coordinates: 37.936717, -122.023184
                                N37 degrees 56.20302, W122 degrees  1.39104

Ok, maybe the GPS is a little too geeky. 

The point is - It's a a win win for all sides!

See you there!

Citigroup "Global Community Day"

Saturday, November 17th: Over 58,000 volunteers participated in over 1,000 projects in more than 450 cities across 100 countries.

Really? That's the line from the Citi issues press release. Does that mean it really happened? I can't say. Is this just another large company pumping out pseudo propaganda in an effort to bolster it's image? Maybe.

I tend to be a little cynical when it comes to the big guys. Instead of throwing out wild accusations I'll report on what I actually witnessed.

The stage was set. Saturday at dawn, we were to meet at down at the old High School. The Kids were warned. The Parents and Teachers were notified. Would Citi even show? Only time would tell.

The plan was to band together to clean up the school. 55 Acres, 1,500 students, 2 district paid Custodians during the day. Outnumbered.

"If a piece of paper falls to the ground, and no one is there to pick it up, does it make a sound?"

Well... We brought our kids, our parents and teachers. Citi did show up. They showed up in spades! They brought Bank Managers (yeah Scott Sachs!), Tellers, Administrators, Personal Bankers, and even the Securities Guys! They even brought Breakfast and Lunch! We banded together with the Citi employees, separated into groups and went to work.

We picked up trash. We steam cleaned. We pruned. In the end, we made a real difference. We also learned along the way that sometimes it's not all about the company.

Financial statements , Dividends and Stock Prices all have their place in the world. But sometimes it's bigger than that. Sometimes it's all about the people.

My Picasa Album

Thank you Citigroup! You were wonderful! Absolutely Wonderful!

Ygnacio Valley H.S. Marching Band

 

I'll be a "Band Dad" again this weekend. 

The Ygnacio Valley High School Marching Band will be loaded and on the Bus before dawn Saturday.

They'll be marching in beautiful Napa Valley in the Vintage Reserve Band Festival.  They are a small but wonderful group of kids.   I just hope it doesn't rain.

Last weekend they finished FIRST in the Lodi Grape Bowl!  Go Warriors!

Incidentally, if you have a kid in the band, I have 500+ photos uploaded in a private website.  Call me and I'll send you the link.  (925) 639-1078

And remember, I'll donate $500 to the YVHS music program for every loan you refer to me.   Call me for details.

Y.V.H.S. E-Waste Recycling Success!

It's Blog Action Day and it came at just the right time. This weekend we helped with the Ygnacio Valley High School Electronic Waste / Recycle Event. I am happy to report that it was a success!

In case you missed it - the parking lot at the high school was turned into a giant drive through recycling center for all items that shouldn't go to the landfill.

The event was a fundraiser for the YVHS Music Department. As you might guess, the Music Programs have all had serious funding issues lately with little chance of a brighter future. Since the Feds and State are cutting back - fund raisers like this will become more critical in the near future to the continuation of the entire music department.

While the heavy lifting and sorting was left to the professionals, the kids were allowed to explain the program, accept donations and talk with the public.

Here's a couple of interesting factoids:

If you were to drop off a TV or CPU at the local landfill, they would charge you $25 to $40 per item. The dump cannot treat these items like normal rubbish - they must collect and turn it over to a proper e-waste recycling company. That company crushes the items - then sorts and separates out the raw heavy metals.

Everything is crushed - nothing is reused. To the horror of the kids - if someone were to drop off a brand new in the box iPod - it would be crushed! No questions asked. This is part security, part business. If I was to drop off a CPU I wouldn't want to see that Hard Drive reanimated into a newly refurbished computer with all my important private information on it.

All in all the E-Waste recycling event was a smashing success! We thank you for coming. We thank you for helping the environment and we thank you for your donations!

Technorati Tags: e-waste, recycling, ygnacio valley high school, fundraising, marching band

Free Electronics Recycling

 E-Waste - It's all those things you can't just toss in the garbage.  It's computers, it's cell phones, it's printers, scanners, even you mouse!

Here's your chance to get rid of those pesky old tech gadgets piling up in the garage.

Did you know it's illegal to throw out old cell phone batteries?  How about that old baby thermometer that you haven't used in years since you went thermal.  Toss it and you are breaking the law.  Really!

Well here's your chance to do some good for the planet, the country, the county, and even the landfill out in Martinez.  It's called E-Recycling, and the best part?  This weekend it's absolutely FREE! 

But wait!  there's more.  We've also set up a convenient drive thru.  How easy is that?

Ok, how about this?    You have all weekend to do it.

Saturday, October 13th 9:00 am - 3:00 pm

Sunday, October 14th 9:00 am - 3:00 pm

 

For more details you can look here:

http://www.unwaste.com/event-detail.php?ygnacio10131014

Just a few of the items they'll take...

Televisions Monitors Computer systems Copy machines Fax Machines Printers MP3 Players Scanners Video Game Consoles Video Games

Household phones Stereo Equipment Miscellaneous wiring CD's (players and discs) DVD's (players and discs) Computer components ( i.e. keyboards, mice, internet devices etc.) Cellular Phones (batteries can be included)

 

This is a Win - Win - Win.  But there is one catch.  This is a fundraising effort put on to benefit the Ygnacio Valley High School Music Program.  The kids will be working it.  I'll be there to help Saturday morning.  But they'll be relying on your donations to make this successful.  The average cost per item you E-Recycle would normally cost you $25.   They've arranged to have that cost waived.  When you come to recycle could please consider donating that $25 to the kids.  You'll feel better.

   

Technorati Tags: ygnacio valley high school, marching band, e-waste, recycle

Lease Option to Buy Snag

From a Sellers perspective the Lease Option could be viewed as a viable method of moving the property from the negative side of the equation to the positive  side.  If a home is on the market it obviously has no rental income, it's also not benefiting the present owners by providing a roof over their heads.  As it sits on the market it's costing the seller each and every day.  They probably have to wait to make an offer on their new home until they have an offer on their present home.  One of the latest tactics when a home doesn't sell is to Lease Option it.  I wrote about one such instance here:

Your Listing Hasn't Sold? Lease Option It!

This tactic could be a win for the Seller depending on the structure of the deal.  Many deals are structured to favor the Seller, not the Buyer.  Not that there couldn't be a Win - Win for both, I just happen to see more tilted towards the Seller.  That makes some sense as they are the ones writing the contract. 

For the potential Buyer, there are certainly risks involved. 

Lease Options are nothing new.  Rent to Own business models are known to all.  I could go down to my local Rent - A - Center and pick up a new leather couch.  Exorbitant rental fees aside, I now am watching my Rent to Own Plasma, while sitting on my Rent to Own couch.  If I miss my weekly payment, they come pick up my TV and couch and I'm back to where I started.  If I continue my payments to the end, I now own the couch and TV.  It's all good.

Lease Option the house and I will probably put something down as a deposit, I'll have to make my monthly rent on time each and every month, and then 2 years later a portion, or maybe all of my rent is applied towards the purchase price.   It's all good.

Almost.

• What happens if the market zooms in those 2 years?
• What if it declines?
• What will rates be like in June 2008?
• Will his credit be any better then?
• What will underwriting guidelines be like in June 2008?
• Will he be able to qualify for anything at all?

These are just the reasonable questions we can ask.  The foreseeable ones.

But remember, there's a reason the house wasn't sold to begin with.  Was it overpriced?  Was it below standards?   Did the owners need money?  There was a reason.

This presents another risk to the Lease Option Buyer.  What if the Owner / Seller goes under?  What happens if the home goes into foreclosure?  When you signed the agreement, did you ask for financial statements from the Seller?  Did you check to see if there were any liens on the property?  Of course not.

Lease Options can be good vehicles to move property.  But increasingly there are more and more reports coming out as good Lease Options go bad.

Here's a couple I've been following:

 Crisp & Cole lease to buy program

http://www.buzzle.com/editorials/12-2-2005-82927.asp

http://sfvblog.com/tag/investor-info/lease-option/

"If you lease option the house, you can charge up to 25% more than the current market rental price, because you are offering to let the tenants buy the house. You might also be able to use the option consideration to pay for the payments to the bank of which you are behind."

How scary is that?

The Foreclosure Crunch

This is part Three in a Four part series of articles detailing the changing mortgage market.

The Foreclosure Crunch

The Foreclosure Crunch is closely related to the LTV Crunch.

In fact, both crunches fuel on each other.

I would suggest you first read the LTV Crunch before you dive into this easy concept.

Now where to start?
Hmmmmmm .....

Let's start with the 3 TRILLION in Adjustable Rate Mortgages that we know are just about ready to change, or recast in the next year. That's a huge number! And yes, it is a national number but it is going to have an enormous impact of home loans in here in Contra Costa. I mentioned we know these loans are set to change but what does that mean?

As an example, let's say you financed a couple of years ago. The best rate and term your broker found you was 5.625% fixed for 3 years (or 5, 7, or perhaps 10). It was fixed at a time in history where the rates were the lowest. That's the good part. the bad part is that the loan now is set to adjust to the current rate environment. And rates are higher now than they were then. That means the monthly mortgage payment is going to go up. How much? On a POA it could be as much as double or triple! Other loans might be a bit more manageable.

Like explained in the LTV Crunch, and the Credit Crunch, these borrowers may not be able to refinance into anything! When that happens they can either:

• Live with it and try to meet their obligations,
• List their home for sale,
• or fall behind and go into Foreclosure
  

I can tell you that many of the people I have dealt with are already strapped for disposable income. Trying to keep your head above water is a temporary situation at best. If that payment continues to rise what do you think is going to happen?

Our local housing market is somewhat crowded already. How long do you think it will take a homeowner to sell right now? Not a pretty picture is it?

That leaves Foreclosure.

But let's just say you have an ARM.
You also have a great job, plenty of cash, and overall you are doing just fine.
Maybe you last refinanced or bought with an equity position of around 20%?
This possibly can't effect you - can it?

Wrong!

Try this...

1. Go to google maps and pull up your property.
2. Now draw a circle 1/4 mile around your home.
3. Now count the number of homes in that circle.

If any of those homes in that circle sell for under market value, go under, REO or sell at auction. your home just lost value as well. If it loses too much your ability to refinance into something manageable may be compromised no matter what YOUR personal financial situation is.



How about those people on the fringe of your circle? Their values are related to those 1/4 mile further away, and so on, and so on.
So really, a foreclosure many many miles away could domino into your home!
Bummer, eh?

"Yeah Mike, but I live in an upscale neighborhood. We don't have those kind of people around here."
Wrong again.

I did a little research locally.
I went to the County Records.
I asked for a list of homeowners who...

• Live in a single family home (no condos)
  
• In the Lafayette, Orinda, Moraga, Walnut Creek, Alamo, Danville, Pleasant Hill and Concord area.
• Who have an Adjustable Rate Mortgage at least 3 years old with A Paper lenders.
• I also limited the search to the first 1,500 names.
  

Surprise!
My list started in upscale Lafayette (just because that's what I listed first) and never left!

WOW!

So if you think your neighborhood is safe, if you think you are safe, consider yourself now informed.

It's not all bad news though.

I've said it before and I'll say it again,
"If homeowners are proactive now, they can navigate a soft landing. If they are not, they could find themselves in situations outside their control that could lead to personal financial disasters like bankruptcy and foreclosure."

If you do not know what kind of a mortgage you have, if there is any chance at all, I urge you to seek out a professional review ASAP. Only a Professional Mortgage Planner will be able to give you an objective opinion on where you stand.

The LTV Crunch

This is part Two in a Four part series of articles detailing the changing mortgage market.

The LTV CRUNCH

L.T.V. is simply an acronym for Loan to Value.
This is a surprisingly simple computation resulting in a percentage.

Let's assume you have bought a home valued at $800,000.
To buy that home you took out a loan for $640,000.
Your LTV is going to be 80% - easy right?
We took the loan amount and divided it by the value.

LTV has a cousin. CLTV - the C standing for "Combined".
That brings the other loans you might have into the equation, loans tied to the property like a Line of Credit.

Using our example, let's now assume you have a 1st Mortgage of $640,000 and a HELOC (Home Equity Line of Credit) for $80,000.
Now you owe $720,000 on your $800,000 home.
That's a CLTV of 90% right? Following so far?
Pretty easy stuff.
Now we're going to twist it a bit.

The Maximum LTV or CLTV is determined by the Guidelines.
The Guidelines are a set of rules detailing all the parameters of what loans the lender will do.

"Who cares what the Guidelines say?"
For one, the Underwriter who approves your loan does.
Underwriters live by the Guidelines.
To paraphrase the heavy metal band "Faith No More" They care a lot!

And to make matters worse, I have news for you. The Guidelines are changing.
They are getting tighter and tighter.
A year ago, a typical Guideline might have said something akin to "The maximum LTV on this product is 80% with a maximum CLTV of 100%"
To a loan officer that means this program will allow an 80% first mortgage and a 20% second.

That was then - this is now.

That same text might have a completely different tone today.
"The maximum LTV on this product is 80% with a maximum CLTV of 90%".

That doesn't sound so bad does it?

But wait there's more! (one of my favorite infomercial lines)

The value on your home is determined by the sales price of others around it.
That's called the Comparison Approach of Appraisal.
This is an important concept.

Going back to our example.
Your home was valued at $800,000 and you had a CLTV of 90%.
Let's now assume you need to refinance.
Your present loan is about to recast and your payment is going to go up.

The appraiser comes in, does his thing, and comes back with a value of only $750,000!
Why?
The other homes in your area that have sold in the last 3 to 6 months, sold for less. That's why.
Your home value is a direct result of the recent sales prices of other like homes in your area.

Important Concept #2:
As the value of your home decreases, your LTV increases.
Conversely, if your home value increases - your LTV decreases.

But I digress, let's go back to your refinance.
The appraisal comes back at $750,000 and now your CLTV is not the 90% it was but instead it's 96%. The aforementioned Guidelines for the loan that you are applying to clearly state a Maximum CLTV of 95% or worse yet 90%.

The result? - You cannot qualify for that loan and must find another loan program, another alternative, or live with it. This is because of two things. The guidelines changed, and foreclosures and financially distressed homeowners in your area have lowered the value of your home by selling at prices lower than your market value. Both items clearly outside of your control.

The Moral of the Story:
What's going on around you, in the country and in your neighborhood, no matter what your personal financial situation might be, can have drastic implications on you and your financial situation.

I am an optimist. I look at this as an opportunity for those that are prepared to rise above.
I have been recommending to all my past clients to review their mortgage plans, examine their goals and needs, and make adjustments to those plans sooner than later, if need be.

The Credit Crunch

You may hear from time to time about the Transparency of Real Estate.
There are people and companies marketing this term daily.
It refers to the general idea of the borrower or clients ability to see and know what is happening "behind the scenes".

I'm all for that!

In the broader sense, I like to see behind the scenes in the greater mortgage world.
I'm one of those types that wants to know how a company is doing.

• Are they in good financial health?
• Do they have great customer service?
• Or are they hurting and teetering on the brink?

Many times the things I see as a Mortgage Broker go virtually unnoticed by the general public.
One of which is the tightening of credit guidelines across the board.

Welcome to Part One - The Credit Crunch!

Make No Mistake!
This will and does effect everyone, no matter how good or how poor your credit is.

WAMU (Washington Mutual) issued a statement to the press recently that went unnoticed by the mainstream. In that statement, they said they were "emphasizing higher-quality loans to boost earnings and cut risk after its home loans unit lost $113 million from January to March."

I can see why it went unnoticed.

Here's what you need to know:
Just how much are they "emphasizing"?
How about 70%? Yeah - 70%!

Let's put it this way.
WAMU is one of the biggest lenders nationwide.
The loan you qualified for to buy your home, or the loan your 99 neighbors have is no longer available - period!

How will this effect you?

Follow the bouncing (snow) ball here...

• Maybe not you, but when any of your 99 neighbors need to refinance in the coming months they are going to be in for a little shock.
• They will not qualify for a refinance - plain and simple.
• They will be forced to keep their loans.
• Their payments will increase (3 trillion ARMS are set to recast in the next 18 months).
• They will be forced to try and sell.
• The market will not be able to absorb the new inventory at the prices they need to sell for.
• Your neighbors will go into foreclosure.
• The value of your home is determined by the sales (comps) of others like it in the neighborhood. When those houses sell due to hardship they are not selling at top dollar are they?
• This drives down home values in even the best neighborhoods.
• When the values drop, so does another key factor in the mortgage equation, Loan to Value
  

And that's part 2 of this series... The LTV Crunch

March Median Home Prices UP in the Bay Area

The median home prices local buyers paid for a home in the Bay Area last month (March) was $639,000.
That's a gain of 3.1% from the previous month (February).

For the the same time last year the median rise is 2.1% (March 2006 - March 2007).

March figures tend to be higher than February as the traditional buying season tends to kick into gear with the coming of Spring.

The latest data included the 9 Bay Area Counties:

• Alameda
• Contra Costa
• Marin
• Napa
• Santa Clara
• San Francisco
• San Mateo
• Solano
• Sonoma

Looking at the year over year numbers the biggest median winner was in Alameda County with a gain of 3.1%.
The biggest median loser was in Napa County with a loss of 9.2%.

Contra Costa County weighed in with a median price in March 2007 of $575,000, up .6% from a year ago.

The "Median" price refers to the the point at which there are an equal number of homes selling above and below that point.

With traditional mortgage rates relatively low, experts are looking for increasing sales in the coming months.