BUT DAMN #249 REAL ESTATE: IS IT TOO LATE TO RETIRE EARLY?

I want a retirement fund.

I need a retirement fund.

I should have started a retirement fund.

But Damn! I'm almost 50 years old ... Can I still retire early?

Retire early?? ... you're 50 with no plan!!!! Ya' sound a little greedy bro', but yes it is still possible.

We work ourselves to death and still over 90% of the population can't afford to retire at the age of 60. Why?

While many reasons exist, you have to decide when you want to retire and plan accordingly. Idle wishing will not accomplish this. Your ship probably will never come in, unless you direct it into the harbor. With so many opportunities to put your money into, what is the best way to retire early? As it has been for hundreds of years, investment property is the best choice.

Unlike other forms of securities, investment property forces you to save. You have to pay the home mortgage every single month with investment property. If not, you lose the property. This can be looked upon negatively by some but it is a great advantage to you in the end. This is what is referred to as LEVERAGE.

What does this mean exactly? A standard down payment required on a home mortgage is 20%. Let's say you wanted to buy an investment property for $100,000. You only have to put up $20,000 of your own money. However, you get all of the appreciation of the investment property. This means you're actually making money on $100,000 instead of the $20,000 that you put up.

Investment property also requires less risk than other types of investment. If the stock market plummets tomorrow, you've got nothing. If your investment property burns to the ground tomorrow, you have insurance. This is a great advantage in itself. Even if property values plummet in your area, the investment property will still be worth something.

Another major advantage of investment property is the positive cash flow that is created through rent. In many cases, you can pay the entire home mortgage with the rental income that you make from the property. The people that rent it are making your mortgage payment for you and you reap the benefit. When you sell the property, you get the profit, not the renter.

The advantages of investing in real estate are numerous. There is less risk and more reward than almost all other forms of investment. We all want to find a way out of the daily grind of a job. This could be the best way out.

Contributing: Marian Rozwenc, PhD, property and auto insurance specialist.

BUT DAMN #248 REAL ESTATE: CAN'T SELL MY HOME, MY LISTING AGENT PUT THE PRICE TOO HIGH

My Real estate agent appreciates the craftsmanship that I have put into my house. She then gave me a great price to list my house. After 90 days we have no sale.

But Damn ...

Now she says I have to reduce my price.

You my friend are the victim of a real estate agent who just wanted to get her foot in the door.

You probably interviewed at least three agents like you were suppose to, right? And ultimately you went with the agent who gave you the largest listing price. She probably spent a couple of hours pumping you up, telling you how much she admired the work you had put into your home. This ultimately led her to "guaranteeing" your house would sell for a really good price. You liked hearing that and the fact she was cute was a bonus right?

When in fact, that price was way over inflated and she did so, so you would choose her as your real estate agent. She was working you; just trying to get your listing and guess what? It worked.

Now after 90 days your house hasn't sold and before their contract with you runs out they want to drop the price of your home to make it "more competitive". But you the home owner are now depressed because you counted on making a certain amount of money off the sale of your home. In some cases you have already physically spent that money. In all cases mentally spent it.

So, what to do? Grin, bear it, and make your real estate agent work her a** off for this trickery. And, if after what you feel is a "competitive" reducing of your house it still doesn't sell, you need to get a new agent. Or sell it yourself with a discount agent. (But that's another article)

Your selection of a real estate agent , should not only be a personality mesh. Each of your potential agents should explain to you a "marketing plan" of selling your house, utilizing research and state of the art video and on-line technology. And a good agent will tell you things you want to hear but also things you don't want to hear.

You want honesty and to know the agent is being both optimistic but also real. I'm not saying let him suggest a price you feel is far too low and is giving the house away. Just realistic, given the current market and stringent loan process.

LA's Santa Barbara Plaza: Black Community Gets Hoodwinked, Bamboozled, And Left Holding The Bag

REASON #367 WHY MORE OF US ARE MOVING TO THE SUBURBS

The stalled Santa Barbara Plaza development in the heart of Black LA's famed Crenshaw District suggests how badly a project can be bungled when incentives are not in line with goals.

It was supposed to have been a model of urban renewal -- a mix of housing and classy stores to replace a decaying 20-acre shopping center at the foot of the affluent Baldwin Hills. Instead, the once prime location is a collection of blight, dead or dying businesses, and a vast concrete lot with weeds pushing through large cracks. Most of the housing was never built; none of the retailers ever came.

The largely middle-class, African American area is stuck with a mostly deserted commercial slum. Southern California leaders gambled on a check-bouncing, politically connected developer to shepherd the project. And after $15 million in government subsidies and more than $30 million in private investment, taxpayers -- and the community -- have lost.

Christopher Hammond, a bespeckled, light-skinned politically connected developer, was able to draw $15 million in public funding for a retail and housing development at the foot of Baldwin Hills that remains an unbuilt eyesore that's left Black Angelenos pissed.

Government Pays Hammond 400,000 More Than Appraised Value For Property

Despite a history of questionable credit-worthiness and reliability, bounced checks, and no shortage of lawsuits from unpaid contractors and bill collectors, former city Mayor James K. Hahn and former and current City Council members Mark Ridley-Thomas and Bernard C. Parks (locked in a contetious political battle for a ) continued to work with the tall, charismatic African American brotha.

The complete article can be found here.

BUT DAMN #245 REAL ESTATE: FORECLOSURES--DEAL OR NO DEAL

Everyone around me is loosing their home in foreclosure.
I mean it is really sad...
But Damn!
I can use some of my home equity to get myself a deal.

Ok this is sounding a lot like greed and this kind of wild speculation has put us in the mess we are in now. But to your point, one persons unfortunate circumstance is another persons bonanza. But it's not EVERYONE'S BONANZA.


I am not a foreclosure expert but having listed a number of foreclosures over the years, I know a few things about them. Some of the things I know, I learned the hard way. Anticipating a flood of CT foreclosures on the market in 2008, I thought I'd share a few tips for agents and buyers to make dealing with the bank foreclosure process a little easier. And while it might sound like I'm being a wise ass, I'm really trying to help you get a good deal. (See #3)
1. Complete all the bank requirements before submitting an offer. If the bank requires you to sign and initial 41 pages of documents, don't debate the subject unless you really don't want to buy the house. That is why they are called requirements.

2. Your attorney will hate the required bank addendum and try to change it. (See #1)

3. Don't assume a bank foreclosure is a great deal. In my experience, great deals are hard to find and most foreclosures are listed at fair market value. If you are willing to do repairs, you may find a good (maybe even great) deal on a house that needs work.

4. Although the price on a bank foreclosure may drop eventually, banks usually don't accept a "low ball" offer. In some cases there is even a secret formula of how much lower than the list price an asset manager can accept. Once the price is dropped, the formula is reapplied.

5. Closing dates can't be mushy. Time is of the Essence. Bank sellers expect you to close on or before the closing date of the contract. They don't accept excuses and will often charge a per diem if you are not ready when they are.

6. Keep your offer clean. Banks won't accept a contract littered with contingencies. AND if you have a house to sell, don't bother making an offer until your house is sold.

7. Be willing to Close quickly. I swear asset managers have little contests for most closings in a month. They always want to close THIS MONTH.

8. Asset managers are dealing with hundreds of properties. Don't expect an answer from the bank within 24 hours even if your offer requires that.

9. Don't get mad at the listing agent if you don't get a response quickly. (See #8) You WILL need the patience of a Saint but it really isn't the listing agents fault. Calling her 5 times a day to ask, "Have you heard anything yet?", won't get you an answer any faster.

10. While your offer is being considered, other offers may come in. This will make you really mad. (See #9)

10 1/2. Agents who list bank foreclosures are automatically eligible for Sainthood. OK, I just threw that one in for other agents but bank foreclosures are a lot of work. There is tons of paperwork and reporting. Good systems will make the job easier. Unless you are working with banks who have their own list of contractors, be prepared with a list of good, reliable vendors you can count on. And expect to be yelled at a lot. (See #9 and #10)
For This article and more good infor check out Realtor Linda Davis Gales Ferry, CT

BUT DAMN #247 REAL ESTATE: TAX TIME, I NEARLY LOST MY HOUSE BUT STILL OWE CAPITAL GAINS TAX?

I was in big trouble, seriously behind on my mortgage.
The bank was set to foreclose... Then a miracle ...
The bank saved me, they renegotiated me to a new loan and forgave $10,000 of debt.

BUT DAMN! The IRS wants to tax me on the $10,000!!

Yup, Right now that's the way it works.


Ok let's say you are in a similar situation and the lender WON'T renegotiate.

But, they agree to a SHORT SELL. Meaning instead of losing your house, you sell your house. You sell it, however, for $15,000 less than what is owed on the mortgage, hence "SHORT SELL."

But hey, the lender says, "that's cool well take what ya' got and we will forgive you for the $15,000!!" Boy, at this point you are pretty pleased. Until ...

The IRS lets you know they have received a 1099 from the lender for the $15,000 and now the IRS considers that $15,000 as INCOME!!!

The solution: Pray for The Mortgage Cancellation Tax Relief Act of 2007 (HR1876)

Basically this bill will have the sensitivity and compassion for all you have gone through this degrading, stressful and just plain awful experience. This bill would relieve you from any IRS obligation. But until it passes, however, know the consequences.
A nod to ken harney

BUT DAMN # 246 REAL ESTATE: THE FORECLOSURE NOTICE HAS BEEN SERVED

My friend “Phil” called me this week and asked me to buy his home …
and rent it back to him until he could get himself “straight.”
But Damn…
How did he get in this situation?

You see at one time Phil had it made in the shade. He used to live in a fourplex. He owned that same fourplex and rented out the other three units. At the end of each month after collecting his rents and paying his mortgage, property insurance, utilities and car payment on his Tahoe (with new rims); he would have to come out of his pocket only $800.

What Happened??

He took equity out of the building to pay bills, take the family on a London vacation, buy his wife a car and fix up the 2 bedroom unit he lived in. Then out of nowhere he got caught up in that buy, buy, buy frenzy of 18 months ago. He sold the fourplex and bought a brand new townhouse. His new monthly “nut” became $2,700 per month.

How do you afford going from $800 to $2,700? ... You don’t.

His credit is bad, he only works part time (performing artist) and there is no equity in his new townhouse, so the bank is foreclosing and taking it. And now he wants me to buy it and rent it back to him. I become his landlord!

I told Phil: “If you were a single man I’d buy that house in a minute, but since you are married … hell no! See if you don’t pay the rent, I have no problem putting your butt out on the street, but not your wife and kids. You better go ask your mother-in-law. She’s vested and won’t put her grandkids on the street. And for now on … you better start carrying a sleeping bag in your car, in case she keeps the kids and changes the locks on you.”

Readers, facing foreclosure and don't have a mother in-law? Here's Help:

***Americans for Fairness in lending

***Freddie Mac’s online guide to avoiding foreclosure,

***National Assn. of Consumer Advocates

***Neighbor Works America

***U.S. Department of Housing and Urban Development

LEGAL HELP: American Bar Association , Legal Services Corp, and the National Assoc. of Consumer Bankruptcy Attorneys

BUT DAMN REAL ESTATE #244: WHAT TO DO WITH MY MORTGAGE IN 2008 AND HOLD ON TO MY HOUSE

It's the end of the year and that big smile on your face is because either you were able to sell your house in this horrible market. Or you got a great deal on declining house prices and you're now sitting in your dream house. Either way congratulations.

BUT DAMN! ... What about the rest of us who are barely getting by?

Well, we made it through the year, as others around us dropped by the wayside. "For Sale" signs, empty houses and condos dot the lands scape. So now in 2008 how do we avoid foreclosure, and not become one of them? Start by clicking here to see what to do with your mortgage in 2008 because ... You've got to keep your crib by an means necessary!

BUT DAMN #243 REAL ESTATE: HOUSE SELLING FALLACIES, DON'T BELIEVE THE HYPE

HOUSE FOR SALE

We offered a $5000 bonus to the realtor who could bring us a buyer.
BUT Damn!
Still no one has come to look at our condo.

5000 dollars, HOW SHAMELESS OF YOU. Marketing should be tasteful, like the picture of Selma Hayak we used for this real estate article. So welcome to the club, because whether you believe "sex sells" or "money talks", when it comes to real estate, you are probably a victim of REAL ESTATE FALLACIES:

Fallacy #1: Everything else in the county is more expensive so those who want the least expensive home will flock to your home.

Fact: Can't say as I've ever even once had a buyer say to me, "take me right to the cheapest house in Montgomery County. That's exactly where I want to live!" Most pick an area and then find the house that suits their price range. If they don't want to live in your area, cheapest house won't matter!


Fallacy #2: Every home will attract a buyer so if we just stay at this price a buyer will come to us eventually.

Fact: Not every home will sell in this market. Many will fail and do as evidenced by the high number of expired and withdrawn listings.

Fallacy #3: Put the bonus in bold so agents can see that they'll get paid more for selling this house.

Fact: An agent needs a buyer interested in the property first. When it's priced so high no one shows the property ever, the bonus ain't gonna cut it. Agents aren't stupid.

Fallacy #4: We don't just want some investor to buy our house for nothing.

Fact: When your home is in an area of more than 50% foreclosures everyone's an investor. You are chasing the market down week by week by week. Those that are selling are getting waaaaaay under the active listings to sell.

Fact: When an area is hit like this it will be years and years before the market comes back enough to make the money you wanted.

Fact: Your strategy allowed you to succeed in not giving your house away for nothing. Unfortunately, you got nothing as a result. Worth it?

In the end listen to the advice of a good realtor, watch the listings and solds in you area each week to see what's going on. If you can't sell, what about renting. Not what you dreamed of? Well make it easy on yourself by getting a management company. You then will have to wait till the market gets better. Even if it doesn't cover your whole mortgage. In this market, something is better than nothing.

Thanks to Bethesda Realtor Josette Skilling for her input.

BUT DAMN #242 REAL ESTATE: CAN'T SELL MY HOME, MY LISTING AGENT PUT THE PRICE TOO HIGH

My Real estate agent appreciates the craftsmanship that I have put into my house. She then gave me a great price to list my house. After 90 days we have no sale.

But Damn ...

Now she says I have to reduce my price.

You my friend are the victim of a real estate agent who just wanted to get her foot in the door.

You probably interviewed at least three agents like you were suppose to, right? And ultimately you went with the agent who gave you the largest listing price. She probably spent a couple of hours pumping you up, telling you how much she admired the work you had put into your home. This ultimately led her to "guaranteeing" your house would sell for a really good price. You liked hearing that and the fact she was cute was a bonus right?

When in fact, that price was way over inflated and she did so, so you would choose her as your real estate agent. She was working you; just trying to get your listing and guess what? It worked.

Now after 90 days your house hasn't sold and before their contract with you runs out they want to drop the price of your home to make it "more competitive". But you the home owner are now depressed because you counted on making a certain amount of money off the sale of your home. In some cases you have already physically spent that money. In all cases mentally spent it.

So, what to do? Grin, bear it, and make your real estate agent work her a** off for this trickery. And, if after what you feel is a "competitive" reducing of your house it still doesn't sell, you need to get a new agent. Or sell it yourself with a discount agent. (But that's another article)

Your selection of a real estate agent , should not only be a personality mesh. Each of your potential agents should explain to you a "marketing plan" of selling your house, utilizing research and state of the art video and on-line technology. And a good agent will tell you things you want to hear but also things you don't want to hear.

You want honesty and to know the agent is being both optimistic but also real. I'm not saying let him suggest a price you feel is far too low and is giving the house away. Just realistic, given the current market and stringent loan process.

BUT DAMN #241 REAL ESTATE: MOVING AND LETTING SOME OF MY STUFF GO

We found a new house, Hallelujah!
We are moving in two weeks and the packing has begun.
But Damn!!!
I can't seem to let anything go. I've even started to pack old magazines!!!

Sista it happens. Because money is tight, I myself just emptied out our paid storage we have had for four years. I pulled out of there boxes that I know I haven't opened in those same four years.

My two best friend's mother passed away and the two of them held on to the family house they grew up in. For almost two years they paid the sizable mortgage and kept the utilities on. It just sat there like a museum, a shrine to good times and a mother and father who loved them. Wow. It is rough. Is this you?

Moving can be a stressful and emotional time, especially if you are down-sizing from a home where you have raised a family. The memories alone crowd the house, never mind the actual "stuff". I came across the following tips that might be helpful for homeowners going through this type of move.

1) Focus on where you are going and what you're creating; not on what you're leaving behind. This is a new phase in your life and can be a wonderful time.

2) Be Practical, Not Sentimental. Identify the objects that you are taking with you and those that can be left behind. If there's something you are not quite ready to part with, consider TEMPORARY storage, set an end date.

3) Giving It To Someone You Love. While living in New York City, I inherited a crystal lamp. I was moving to Los Angeles and I just new it was too delicate to pack. My mind kept going forward to the agony of unpacking it and seeing it broken. I had a friend, Tom, who always admired the lamp. I gave it to him. He insisted I take something of his. In his closet he had a sleeping bag and I remembered those first nights in New York with no furniture and using my coat as a blanket. Bingo! I took the sleeping bag for my LA relocation.

4) Entertain. You may think this is the worst time to have people over, but if you surround yourself with family and friends, a support system, making it a packing party turns this difficult task into a social gathering. Just remember you label the boxes and you provide the beer after you all are done.

I'll be going through this myself in the next two years, and find that I waiver between being logical and emotional about it. I need to remind myself that it is the people that made the memories in this house, not the house itself, and we can make new and even better memories in our next house.

Thanks to Kathy Passarette, Creative Home Expressions for portions of this story

BUT DAMN #240 REAL ESTATE: MAKING ROOM FOR SENIOR PARENTS

I love our house. I want to buy a second home for mom & dad,
close to us and new...

But damn ....

The new ones are all two story homes and my parents are 80 years old.

Welcome to the new millennium. You're a "Boomer"right, probably in your forties or fifties. Your kids are not out of the house and your parents or in-laws are living longer. You are now a big game hunter. Your ever elusive prey is ... a new one story house. Unfortunately for the last 20 plus years, with land at a premium and "McMansions" (the most popular, or profitable) type of home built, finding a single level place today with the amenities boomers demand is like finding the proverbial needle in a haystack.

Why is single level so important? Boomers are the first generation to have parents alive and well into their 70's and 80's, (and even 90's!) I know my grandfather was dead at age 57 of a heart attack, but his daughter (my mother) will be 81 this month. She travels, she gardens, she cooks, she gives parties, and her social calendar is so full that I must call her weeks in advance to have lunch with her. So I think the immediate answer is:

Buy a home in a 1950's neighborhood and do an extensive renovation.

These homes usually came with bigger lots, making it easier to push out as opposed to going up. This is also going to be a good project for "flippers." The market for single level housing is being ignored. Big mistake. Single level, no stairs is going to be a hot ticket. Building a brand new rancher in some states can be costly because of the price of land. Land use to be 10% of the cost of your purchase or decision to build. Now that land cost is between 30% and 40%.

You are definitely going to see those 1950 ranchers being snapped up. They are usually missing the big master bedrooms, and maybe one bathroom, but people are desperate to have that single level and are remodeling these houses like crazy, adding on the space they need. Some neighborhoods are completely unrecognizable as a result of this. This is the wave of the future.

Who's my target buyer? First time buyers are out "last time buyers are in!" First Time Buyers usually have limited cash, haven't established a lot of credit, they're still looking at sticker shock, going from renting to a mortgage payment and who can't really jump through the new hoops these mortgage companies and banks are putting up. Last time buyers usually have great credit, rental property, savings and cash from another house they are trying to get rid of. They have probably been in that other house 15 to 20 years. They bought while it was cheap, fought through those awful interest rates, and now willing to sell for a couple of hundred thousand in profit instead of the "max-max" younger sellers are looking for.

Buying the two story with the extra bedroom downstairs?? Well it's all about location, location, location ... location of the bathroom that is. That "powder room" down stairs next to the guest room/den is not going to get it. If there is to be a room for a parent on the first floor, there better be a "full bath" very close to that bed room.

Janet writes: Without getting into the economics of building the 'more costly per sq.ft. rancher', we are in a precarious situation now. With my mother almost 89 and mentally alert but non ambulatory, not only is one floor essential but the proximity of the bath facilities relative to the living areas are critical! We have a 'cape cod' style house with bedroom facilities on each floor, but the closest bathroom is 'miles' away from the living area.

Maria writes: It just so happens that I have my parents living with me. I would have loved a ranch, and in future I would still like one, but this time it actually works out for us to have 2 levels. My parents who are in their 80's have a master bed/bath on the first floor, and the rest of the bedrooms are on the 2nd floor. It gives me a sense of privacy. You can get along fine with your elderly parents, but at times it can be somewhat stressful. (Although, having them live with me is the best thing I've ever done.)

Lesson learned, keep the bath nearby. In closing there is only one exception to the one story ranch purchase or the two story with a master bed and bath on the main floor and that's my perennial favorite; ... the two story home with the mother in-law house behind or attached. And that my friends is the best of all possible worlds.

Inspired by Janet Guilbault, California Mortgage Expert thanks.

Timeshare ... Good News, It's Time To Take The Vacation Plunge

OK, I admit it. I am one of those guys who for years has gone to those “timeshare presentations” with no intention of ever buying and just want the free gifts. Living in California has afforded me some great gifts as the time share companies are plentiful.

I sit thru the 90 minute to two hour presentation and then come up with some excuse why this is not the right time for me to purchase a time share. I then accept the lovely gift that they offer me. And don’t be fooled, some of these gifts are nice. On the cheap side there are gift certificates usually for at least $100 for dinner at well known restaurants. You can also get gas or American Express cards, $150 minimum usual.

But my favorite gift are the trips. Two years ago my kids were nagging me about going to Sea World in Sand Diego. They offered me one night at their luxury facility (which is rare, it is usually a 2 star hotel). I negotiated for two nights and two adult tickets to Sea World. And they actually had the nerve to have daycare during the presentation. It was a great trip. The kids were young enough to get in Sea World free. And a good time was had by all.

I have been to Palm Spring on several occasion and last year I pulled off 5 nights in Cabo San Lucas with airfare just in time for my 10th wedding anniversary. My wife was not so much impressed as she marveled how I had hustled this free trip up.

So why today's article? Well last week I went to hear another “presentation” and get a free three night cruise to Ensenada Mexico. I know there is really nothing I want to see in Ensenada, but this time I made it my purpose to hook up two other couples so we could all travel/party together without the kids, the operative words being “without the kids”.

And a strange thing happened during the presentation. No I didn’t buy … but for the first time, this time share thing made sense. Now that my kids are 6 years old and have a regular school calendar. I have become one of those daddies who is trying to create memories for my kids. As a sales person put it, "In 20 years your kids won’t remember what toys you gave them, what dress you purchased, but they will remember where you went for vacations." In fact I myself remember all the places (and there were quite a few) that we went on vacation, especially if we went there more than once.

So the question is: Is this the time to buy a time share? I called my Uncle Chris in North Carolina who I knew owned a timeshare and he told me: I own three timeshares using three different methods:

1. Fixed Week in a Resort in Orlando, FL, USA

2. Floating week in a Resort in Cocoa Beach, FL, USA

3. Points in a Resort in Lincoln, NH, USA

“My advice is to buy a Fixed Week. There are fewer headaches making reservations when you want to use your week. And it is easier to deposit with any of the Exchange Companies.” Regarding on where to buy, “That is a more difficult question. Resorts in a high traffic of tourist during all year are the best since there will always be a demand for accommodations. That will allow you to exchange for other resorts around the world. Each resort has their preferred partner for Global Exchange. In my case I deal with Interval International II and RCA. These two are the pioneer of the industry so rests assure that they will provide you with the best service there is."

For more answers to all my other questions I went to a website/forum run and written by timeshare owners. They really brought me closer to making the plunge; and making a yearly commitment to memories for my kids and a “little” R& R for mom and I.

Check out what they have to say and enlighten your own decision at The Timeshare Users Group

BUT DAMN #239 REAL ESTATE & MONEY: SAVING EVEN WITH A BIG MORTGAGE

My husband and I were so good with our money.

We had a vision to buy a home.

BUT DAMN ...

This big Mortgage and "extra stuff" for the house has us broke!

When we closed on a new house in January, we had zero credit card debt, but have now racked up $15,000.

"My husband said last night if we had to buy air, we would both be dead. We barely make enough to get by. Only by the grace of God and he's probably tired of us too. Every time I get to a $500 balance in my emergency fund, I have an emergency. We're putting our foot down. We are coming out of this debt!"

One suggestion is to always continue saving even if it's just putting a few dollars away. Save while you work to pay down the debt. In the meantime, work on that budget. Bankrate's "Secrets to creating a budget" advises some steps, such as prioritizing your spending, tracking spending for a month and putting savings on autopilot.

Another of our reader suggest utilizing the following method to stay on top of his/her bills:

"Use one credit card for every purchase and pay your credit card in full each month. Open a free checking account and pay your routine monthly bills via online banking. At the end of the year you should be able to account for almost all of the money you spent. It works."

Another reader wrote in and suggested preparing a personal list of "Revelations" that basically are personal admissions as to where you've spent your money. The reader's "Revelations" included: "purchasing a tool you really didn't need but it was so cool, you knew you would use it one day (yea, right)," and frequently eating out or having pizza and Chinese food deliveries.
What has been the best way you have controlled your spending? Share it with us!

Nod to Brigitte Yuille for assistance on this article.

BUT DAMN # 238 REAL ESTATE: REDLINING, IT'S BACK!

I want a new house.

My lender says new guidelines have banks approving my loan based on loan to value (LTV) maximums. But the LTV maximum keeps changing depending on what county the house is in ...

But Damn! Isn't that redlining?

This is a very sensitive mortgage topic. But you can always count on me to "open up a can of worms" and stress my opinion. I received a disturbing email on Friday informing me that a few 'major banks' are rolling out new home loan guidelines to protect their ASSets ... Or are they?

I saw the new guidelines in black and white. Many areas in the United States, like California New York, and Florida have been experiencing a higher level of foreclosures and notices of default. As a result, these 'major banks' are now rolling out new home loan guidelines, which give "risk assessments" to specific counties that are showing signs of 'distress'. Yes, I'm referring to counties that have higher default levels, foreclosures and are currently lowering property values. Whatever category the county falls into now determines the maximum loan to value that the banks are currently willing to write loans on.

To that, I throw this spin on your question. Is this not Redlining?

Well to quote another famous land owner (Bugs Bunny circa 1967) "MMMM ... could be, could be!!"

Back in the heyday, banks wouldn't lend money in areas that were populated by minorities. And now, it's coming back around in full scale!

Why? Well, most of the counties in California for example that were on the list had weaker job economies, which indirectly points to less educated individuals with lower income levels. It's not picking the color of a person's skin, but it is certainly picking out a demographic group!

What do you think? Leave us a comment below.

Nod to Scott Gormley Broker/Owner Oak Valley

BUT DAMN #237 REAL ESTATE: MY CRIB WON'T SELL

Look I know it is crazy out there, trying to sell a house ...
But Damn!
My crib has been on the market for 5 months now!

Sister join the club. There are a whole lot more houses sitting a lot longer than yours, so here is what you need to be asking yourself:

1) Do I really need to sell this property, right now?
Is renting it out a viable choice. If you are still living in the property, but itching to buy something to invest in ... how about pulling the equity out of your residence through an equity line of credit and using that money to buy the property you want. Things are rough out there and this is no time to buy new property and speculate on what it might do. Unless this new property is your future 'dream home' you have always wanted and you plan to live in for a long time, or the property is positive cash flowing right now; you should proceed with caution.

2) Well, is the price right?

The primary reason a house doesn't sell is because it's overpriced. Ask the listing agent to prepare a new comparative market analysis. This form shows recent sales prices of similar nearby homes, the asking prices of neighborhood homes (your competition) and the asking price of recently expired comparable listings (usually overpriced).

If your house is overpriced, it's time to get a reality check and reduce that bad boy. Yes, others probably made more on their homes that were shabby and run down, but timing is everything. Don't get greedy, get real!

3) Is my listing agent doing all the right things?

Be certain your house is correctly listed in the local Multiple Listing Service (MLS) and their website. Ask the agent to detail what they have been doing to properly market your home. How often do they advertise your home in local news paper. They should be having at least one (well advertised) open house a month. And if they do not have a virtual tour of your house on the Internet, you need to find a new agent. Ask if you should do a 'staging' of your home, such as replacing worn and dated carpet and renting updated furnishings. A lot of buyers don't have vision; they see what they see. Are they seeing an old broke down depressing home?

4) Do I need to find a hobby, another job, or start dating again while I wait?

Have patience, it could really take a while, as interest rates and a glut of homes is not working in your favor. But in the meantime, life goes on. Right?

BUT DAMN #236 REAL ESTATE: SUMMER HOME BLUES

It was a good idea at the time. Purchase a summer home with relatives. Now my cousins are fighting. One is threatening a lawsuit, forcing all of us to sell.

But Damn! ...I love the place.

Can I block this "Partition" law suit, forcing the sale?

People are making a lot of rash decisions because of the current financial status of the country. Little arguments are escalating to "Code Red" because money is stretched and fear reigns. The stress of the world, rat race of the city and personal baggage has ascended on your piece of heaven. And it really only takes one monkey to stop your vacation show.

Partition is a common law tradition allowing a property sale when one of the owners wants to sell and other owners don't want to.

"Majority rule" does not apply in a partition law suit. It is up to a judge to decide. I've seen a judge give co-owners 30 days to resolve their differences or a sale of the property will be ordered, with the proceeds divided among the co-owners. In the end a majority can not block a partition suit. You are going to need a real estate attorney where the property is located.

The home could be appraised, shares divided up and then this wayward cousin could be bought out. You might also offer your cousin the services of a good psychologist. He obviously has issues and the money from this sale will not solve them. If all else fails, go back to basics and enlist the professional services (for several occasions) of someone you might see on a street corner or in a hotel lobby. It's legal in Vegas! Your cousin needs to relax, isn't that why he bought in on the summer home in the first place?

Nod to Bob Russ

LEONA HELMSLEY, THE FEMALE DONALD TRUMP, CLOSES ESCROW

The only woman other than Rosie O'Donell to ever land a punch on Donald Trump has left the building.

New York Hotelier Leona Helmsley, who once served prison time for tax evasion, died of heart failure at her summer home in Greenwich, Conn. according to TMZ.

Along with husband, Harry, the "Queen of Mean," ran a $5 billion real estate empire that included managing the Empire State Building.

A former housekeeper once said she heard Helmsley say: "We don't pay taxes. Only the little people pay taxes." She denied making the statement, but the words followed her for the rest of her life. She was 87.

BUT DAMN #235: REAL ESTATE MOVING MISTAKES

One of my best friends is moving back to New York. I love her and would do anything for her.

But Damn...

She is so disorganized, it is playing havoc with my time and my patience has run out... after all, she's the one moving - not me!

How can you avoid making mistakes when you’re gearing up for a move?

Get multiple references when booking movers. Just as you’d get references with the company that moves your belongings, take similar care when choosing a new city. Read the area’s local newspapers, talk to moms outside the school where your kids would go, knock on the doors of your potential new neighbors. Ask what people like and don’t like about the city. A Chamber of Commerce is also a good place to get detailed info. Use any information you get there as a launching pad for questions of your own.

Study a moving company’s contract in detail. Is the price truly guaranteed, or is there a chance it will increase upon delivery? Exactly what insurance are they offering, and will it really cover your losses if something happens? Are they guaranteeing an arrival day, or will you possibly be sitting in your new home with no belongings for a few days?

Avoid Rushing. You’re more apt to end up with a moving company you don’t like — not to mention a house you don’t like — if you don’t give yourself time. When Darci Smith moved from Grand Rapids, Mich., to Chicago in 2004, an unexpectedly quick sale of her house meant she had just two days to find an apartment. “ I found a nice place but didn't take into account that it was a neighborhood that didn't satisfy my reasons for moving to a big city," she says. A year later, she bought a condo — making sure it was in the midst of a thriving area.

Time It Right. Summer tends to be the busiest and most expensive time to hire a moving company. (No one wants to lug sofas around or push dollies through snowy driveways.) If you have kids, though, summer is often the best way to avoid disrupting school. However, the younger your kids, the easier it is on them to move midyear; younger children aren’t quite as entrenched with cliques of friends, sports and after-school activities and they tend to make new friends easier.

Nods to Homestore, Inc.

BUT DAMN # 234 REAL ESTATE: THE FORECLOSURE NOTICE HAS BEEN SERVED

My friend “Phil” called me this week and asked me to buy his home …
and rent it back to him until he could get himself “straight.”
But Damn…
How did he get in this situation?

You see at one time Phil had it made in the shade. He used to live in a fourplex. He owned that same fourplex and rented out the other three units. At the end of each month after collecting his rents and paying his mortgage, property insurance, utilities and car payment on his Tahoe (with new rims); he would have to come out of his pocket only $800.

What Happened??

He took equity out of the building to pay bills, take the family on a London vacation, buy his wife a car and fix up the 2 bedroom unit he lived in. Then out of nowhere he got caught up in that buy, buy, buy frenzy of 18 months ago. He sold the fourplex and bought a brand new townhouse. His new monthly “nut” became $2,700 per month.

How do you afford going from $800 to $2,700? ... You don’t.

His credit is bad, he only works part time (performing artist) and there is no equity in his new townhouse, so the bank is foreclosing and taking it. And now he wants me to buy it and rent it back to him. I become his landlord!

I told Phil: “If you were a single man I’d buy that house in a minute, but since you are married … hell no! See if you don’t pay the rent, I have no problem putting your butt out on the street, but not your wife and kids. You better go ask your mother-in-law. She’s vested and won’t put her grandkids on the street. And for now on … you better start carrying a sleeping bag in your car, in case she keeps the kids and changes the locks on you.”

Readers, facing foreclosure and don't have a mother in-law? Here's Help:

***Americans for Fairness in lending

***Freddie Mac’s online guide to avoiding foreclosure,

***National Assn. of Consumer Advocates

***Neighbor Works America

***U.S. Department of Housing and Urban Development

LEGAL HELP: American Bar Association , Legal Services Corp, and the National Assoc. of Consumer Bankruptcy Attorneys

BUT DAMN # 624: WHAT DOES MIAMI'S OVERBUILT MARKET MEAN FOR THE REST OF THE COUNTRY?

We're in the middle of the biggest glut of condominiums in more than 30 years,
But Damn...
Miami developers keep on building

With oversupply forcing prices down as much as 30 percent -- the worst decline since the 1970s -- why isn't anyone doing anything about the construction that keeps going, and going, and going in the nation's new "it" city?

"Florida is the epicenter for all the problems that exist in the housing industry,'' said Lewis Goodkin, president of Goodkin Consulting Corp. and a property adviser in Miami for the past 30 years, who also foresees a recession. ``The problems we have now are unprecedented and a lot of people will get burnt.''

Thirty-seven new high-rise condos and 20,000 new units are being built in Miami's 1,040-acre downtown, where sales fell almost 50 percent in May, according to the Florida Association of Realtors. The new units will join the 22,924 existing condos in Miami-Dade County that were for sale in April, according to Jack McCabe, chief executive officer of McCabe Research & Consulting LLC in Deerfield Beach, Florida. That's the most unsold units since McCabe began tracking sales in 2002.

While the housing industry is responsible for 10.6 percent of the nation's jobs, in Florida it accounts for 20 percent, Zandi said. Florida construction jobs fell 2.9 percent in May to 626,200 from the peak in June 2006, according to the U.S. Bureau of Labor Statistics.

The national housing industry's weakness prompted Federal Reserve policy makers this week to cut their forecasts for U.S. economic growth for the next two years.

MORE>>