Cure For Our Financial Crisis

During the last few days I have been party to many different conversations about our financial predicament. Personally, I don't want my tax dollars to be used without thought although I do see the logic of a government bail out. This evening I received the following proposal by Dave Ramsey via a friend and fellow realtor. This proposal is very close to the conclusions that many of us have been coming to in our discussions.

The Common Sense Fix

Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three-step Common Sense Plan.

I. INSURANCE

a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.

b. In order for a company to accept the government-backed insurance, they must do two things:

1.Rewrite any mortgage that is more than 3 months delilnquent to a 6% fixed rate mortgage.

a. Roll all back payments wiith no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.

b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borroweer will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while working with the borrower - again limiting foreclosures and ruined lives.

2. Cancel ALL Golden Parachutes of existing and future CEO's and executive team members as long as the company holds these government-insured bonds/mortgages. THis keep underperforming executives from being paid when they don't do their jobs.

**This backstop will cost less than $50 billion - a small fraction of the current proposal.

II. MARK TO MARKET

a. Remove mark to market accounting rules for two years on only subpriime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.

b. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks - and it cost the taxpayer nothing.

III. CAPITAL GAINS TAX

a. Remove the capital gains tax completely. INvestors will flood the real estate and stock market in search of tax-free profits, creating tremendous - and immediate - liquidity in the markets. Again, this costs the taxpayer nothing.

b. This move will be seen as a lighning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down.

--I think Dave Ramsey covers most of what I've been talking about with others the last few days; what do you think?

Great house in Coleman Highlands!

# 1497981 928 W 34th St $359,000
Built in 1915, this home in Coleman Highlands will WOW you!
Stunning woodwork...historic home totally renovated with style. New open eat in kitchen w island and granite counters. Back yard is an urban oasis w watergarden, great front, porch pvt drive . This gem has been polished!

Open 2-4

5402 Falmouth MLS # 1410419 $400,000
Sophisticated home for the active professional person or couple, completely gutted and remodeled from top to bottom. Remodel was designed by award-winning architect Bruce Wendlandt to meet the needs of the most selective buyers. Open, light, spacious floor plan allows this home to custom fit the lifestyle

Directions: SM Parkway to Falmouth (Falmouth is two blocks East of Mission) North to address

Plaza Art Fair

And don't forget the Plaza Art Fair this weekend!
Wow, there's a lot going on.

Waldo Falldo

The annual Waldo Fall Festival is this weekend. Saturday Sept. 20.
at 75th & Wornall. The Pub Crawl starts at 6pm.

Schedule of Events:
7am - 11am Pancake Breakfast at Broadway Methodist Church, 406 W 74th

Main Stage
10 - 10:30am Opening w/Waldo Mayor Presentation
10:30 - 11:30am Dino O'Dell
11:30 - Noon Junior the Clown
Noon - 12:30pm KC Academy
12:30 - 1pm United Studios of Self Defense Presentation
1 - 1:45 UMKC Ensemble
1:45 - 2:45pm St. Elizabeth Band
2:45 - 3pm Tap-A-Thon Registration & Practice
3 - 3:30pm Tap-A-Thon Performance
3:30 - 5pm The Nortons

All Day - Leawood United Studios of Self Defense
Other Areas
MAST, the Police Race Car, Fire Truck, Climbing Wall,
Adrenaline Rush, Spaceship Slide, Tubs of Fun,
Wayside Waifs (10am-2pm)
Face Painting w/Junior the Clown,
KCP&L bucket truck and mascots from T-Bones and
KC Wolf will also be at the Waldo Fall Festival.
More than 50 booths and vendors will be under
the Big Tent. Come and enjoy!

PUB CRAWL STOPS:
Waldo Pizza
Murphy's
Tasso's
Bobby Baker's
Tanner's
Kennedy's
Waldo Bar & Grill
75th Street Brewery
Lew's Grill & Bar
Patrick's

Santa Fe Hills is having their annual garage sale
south and east of 85th & Wornall.

Changes

October 1st brings some changes you should know about.
These will affect new loans and those in process without an appraisal ordered. These changes effect down payment and total cost of the loan.

1) Upfront MIP premiums - 1.75% for all purchase borrowers.
2) Annual premiums - .55% for loans over 95%, 95% or less - 50%
3) Down payment - 3.5%. Closing costs may not be used to meet the minimum 3.5% down.

If an appraisal is ordered prior to the 10/1 change date, the old rules apply.
On or after that date the above will apply.

Respect for Peers

The Realtor Code of Ethics has three major components:
1. Respect for public
2. Respect for property
3. Respect for peers

Here is a list by the realtors attending the required Ethics class this year of things we wish our cooperating realtors would do:

-Provide constructive feedback after each and every showing (in a timely manner).
-Return phone calls ASAP. (at least by end of day)
-Complete the contract before sending it.
-Cancel or change your appointment; don't just not show up.
-Be Honest.
-Show only to preapproved buyers.
-Leave the house the way you found it.
-Leave a business card.
-Use a lender & title company that can really close the deal.
-Turn the utilities on for inspections.
-Note that the utilities are off in MLS.
-If you want to be there for inspections as the seller's rep, don't try to schmooze my buyers; better yet, come at the end of the inspection.
-Use accurate information regarding schools on MLS; if you don't know, call the school and find out. Don't be lazy!
-Use correct nomenclature when describing architectural details.
-Verify square footage before entering in MLS.
-Don't put "see mapquest" under "Directions" in MLS; your time is no more valuable than mine.
-If there is no egress from the basement, don't call it a bedroom.
-If there is a sign saying "don't let the cat/dog out/in", put a color photo of the pet on the sign.