We had a friend that forwarded us this article from the NY Times in 1999....remember that year way back when?

  NYTimes1999.pdf (166.76 kb)

Sometimes, by allowing our 'human side' to take over for our 'common sense side' bad things will happen.  In 1999 we were so worried that people weren't going to be able to live the "American Dream" of owning a home that we lowered the standards so that anyone that could fog a mirror could qualify for a loan.  Now the economy is suffering as a direct result of it.  I'm hearing a lot of the same rhetoric from the Federal Government currently on helping those people who bought at the market high and are now 'upside-down' in their houses.  The government is talking about forcing the banks to lower the mortgage amount so that people don't get financially damaged.

Im' curious to hear your input here...

 

There is starting to be more and more comparison between the current economic situation and the Great Depression of the 1930's.  First off, I think it's rediculous for us to try and compare the two.  There was not a global market in the 1930's.  Instead, most countries were barely starting to become industrialized.  Today, the world is terribly small thanks to the internet and immediate business done at the click of a button.  That being said, take a look at the following visuals...

 

OK, so I'm sure you saw the part that said currently there are 9.2% of the total US homes that are behind with 2.8% of them being in actual foreclosure...Did you catch, however the part that said in the 1930's this same rate was 50%....SAY AGAIN???  Did you just say 50%??  Wow.

   

This graph shows that if you take a typical 3.5% growth rate we're going to be just fine.  Now, I don't want anyone to misunderstand...we're in a real pickle here economically and that's something we'll have to work through.  But let's not get carried away trying to compare now with the Great Depression.

 

Now, GET TO WORK AND MAKE SOME MONEY FOR THIS LOUSY ECONOMY!!!  :-)

It's only taken 45 days, but we were finally able to track down the elusive iPod Touch winner from our January give-away. Thanks to Clancy for the pictures...we wanted everyone to know that Legacy Lending really does give FREE items away!!

First off, there have been a few changes around the ol' Legacy Lending Group and one of them I'm very excited about. Jennifer Davis has joined our team our loan coordinator and processor. Jennifer comes to us with a wealth of industry knowledge, several years of lending experience, and great contacts that have given her glowing references. We're very anxious and excited to see the positive impact she'll make on our growing company. If you have the time please drop her a line and welcome her to the team! Now, on to saving you money! Tax season is now upon us! And whether you are one of those ambitious people who prepares your own tax returns or have your accountant do the dirty work there are some things that you should know that will help you keep some of your own money this year. There are over 500 changes to the tax laws that went into effect for 2008. It's a good idea to know which of these affect you and your bottom line. Here are a couple of links that will help summarize some of the changes. http://www.latimes.com/business/investing/la-fi-perfin8-2009feb08,0,1364934.column http://turbotax.intuit.com/tax-tools/tax-tips/irs-tax-return/5519.html One of the coolest changes this year was for First Time Homebuyers. If you currently don't own a home or if you know somebody that doesn't own a home then you have to check out this link. http://www.irs.gov/newsroom/article/0,,id=186831,00.html The government is giving up to $7,500 out to people who purchase a home before June 1, 2009. That's a pretty good chunk of money and we've already seen some clients reclaim their credit! In addition, there are some great first time homebuyer programs out there to help people purchase WITHOUT having to put any money down!! If you have any questions about the tax credit feel free to give me a call. I'll be happy to answer those questions for you. Also, VERY IMPORTANT here!!! Don't forget that THIS SATURDAY is Valentine's Day. Just thought you'd like the reminder since if you're like me you forget almost every year!! Now go buy your sweetheart something!

OK, so I had to debate between writing about some of the ridiculous calls made by the officials in the Superbowl, the top 18 reasons why summer is better than winter, or how much I want to throw my home computer out the window because I'm SICK TO DEATH of the error messages I continually get!!

That's when I received an email from my dad with the following video.

See, Dad isn't the most politically correct person ever, but this email hit the nail on the head.  The video was titled "Two (plug in your least-favorite political party here) on an Escalator"  Maybe some of you have seen it.  It shows two affluent-looking people riding up an escalator in a big, beautiful glass business complex.  They're obviously busy and rushing on their way to something important.  They're right in the middle of their ascension when suddenly the escalator stops!

Now, most people would probably gripe a little about the escalator stopping (as an inconvenience) but would then walk out the remaining steps.  That's the funny thing about the video.  You see, when these two saw that they were "stranded" they just stood there complaining and yelling for help.  At one point the man said, "I can't believe this has happened to me" while the lady says, "I don't have time for this."

Want to know why this video has such a funny ring to it?  It's because we've all been guilty at one time or another of having the same 'someone help me' mentality when we had the ability to help ourself all along.  Don't believe me?  When was the last time you had any of these thoughts:

*  Aw crud, I forgot to change the oil in the truck...I wish I would have done it Saturday when I had the time.

*  I wish we would have taken more family trips when the kids were 'small'.

*  Boy, had I known home values would be where they're at today I would have rented over the last two years instead of bought.

*  If I only knew gas was going to be $3.00 a gallon today I would have bought a life-time supply five years ago when it was $0.99!

See, it's human nature to live some of our life in the rear view mirror wishing would could have certain 'do-overs' or that we could have someone reach out and help us when we perceive that we don't have the ability for ourselves.  Where we separate ourselves from the crowd of 'wishers' and turn into a 'do-er' is when we make the initial decision and allow the process to take place.

You have an opportunity to become a 'do-er' right now and leave the crowd of 'wishers' behind.  Since 1971 when Fannie Mae started tracking interest rates there has only been ONE TIME IN 38 years where 30 year interest rates have been below 5%.  Do you know when that was?  That's right...it was three weeks ago.  And since I didn't hear from you, I'm suspecting that you're one of those that are looking in the rear view mirror saying, "Dang!  I really blew that chance."

Well, if you did say that then here's what you need to do.  Respond RIGHT NOW to this email and I'll make sure you don't miss that opportunity again.  Rates are trending back downward, but it's not going to be something that you'll be able to call up and lock the same day.  Banks are extremely backed up with the enormous volume that was booked three weeks ago.  We need to get you started so when it happens (very soon) you don't miss out again!

Respond to this email and I'll take care of the rest.  That's it!  No headaches, no hassles.

CONGRATULATIONS to John & Jenny Seable from Nampa for winning last week's "FREE Lunch on Us" contest.  We were initially going to do a random selection from the entries, but instead we decided to give an entry per word count...since they wrote half a book we figured they needed the nourishment more than anyone!!  Finger fatigue is a real and serious issue that should be treated by massive intake of food!  Thanks for all of the posts.  Jenny's post really did make my day!