LIVE SOLID

On August 17, I posted an article about the mortgage/housing crisis, citing the CNBC documentary film, "House of Cards". Multiple discussions have occurred as a result of that blog post. One of my discussions was with my good friend, Jason Kaplan, an excellent mortgage loan officer at SunTrust.

A few years ago, I had an incredible opportunity to meet Jason through buyer clients of mine. They insisted on using him to do the loan on their investment property. That transaction was one of the smoothest I'd ever had. Never once did I have to ask Jason for information. Before I contacted him, he called me to introduce himself, and to provide information that he knew I'd need. Immediately he earned my respect and friendship.

Clients who have worked with Jason say the same thing. They walk away from their purchase or refinance with confidence in him and in the process. If you're looking for a superb loan officer, give Jason a call. He can be reached at 615-329-3261 or via email at Jason.Kaplan@SunTrust.com.
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Hiring the right real estate agent and mortgage loan officer are two very crucial and critical decisions. For professional service, contact Jack at 615-373-2044 and Jason at 615-329-3261. They're here to help you!

House of Cards - The American Mortgage Crisis

Airing in late 2009, this exclusive CNBC special, "House of Cards" was supposed to be an accurate depiction of the national mortgage crisis. Watching it yesterday, I can only wonder if it was totally accurate.




Don't get me wrong. We have suffered a mortgage crisis here in the U.S., mostly due to greed and unscrupulous lenders, investors and politicians. And while most of this video is accurate, there are a few facts that were left out.

The beginning of the special starts it's focus on the housing market AFTER 9/11 (2001). While that certainly was a point to begin their presentation, the fact remains that this crisis began back in the 1970s when Jimmy Carter was president. Carter (and Congress) wanted to make housing more accessible and affordable for those who could not buy a home. Inflation was at an all time high, and mortgage interest rates were in the double digits. To get the economy back in sync with incomes, Carter wanted to open up homebuying to more people.

During Clinton's administration, the president and Congress wanted to continue to open the floodgates for more homeowner, so rules and laws expanded. Barney Frank led the way because his hands were in the pockets of Fannie Mae and Freddie Mac. During the next administration, Bush wanted it expanded, too, but soon after, realized that we were in trouble. He pulled back and begged Congress to tighten things up in the mortgage industry. Too bad and too late. With Barney Frank leading the way, mortgages that required NO DOCUMENTATION (stated income) with NO DOWN PAYMENT were now the norm.

The blame did not lie just with the government. Greed set in on Wall Street and in local mortgage lender's offices to get more, make more. Unfortunately, many who are to blame, refuse to take responsibility for this crisis. You get the overall gest of the problems in this video. If you click HERE, you can see the chilling effect that this crisis has had on our country.
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If you want a savvy real estate agent on your side, give Jack a shout. He knows the market and how to help you buy and/or sell a home.

Big Trouble in Big America

Check it out. Yesterday, one of the nation's largest banks (and mortgage holders), Bank of America, saw it's stock drop 20%. This as a result of a lawsuit filed by AIG Insurance Company, the very day that S&P downgraded the US Debt and Fannie and Freddie. To read the full article, go HERE.




In my small world, deposit holders are flocking to BoA to withdraw their funds, and they're heading over to smaller, locally owned banks such as Reliant, Franklin Synergy, First Bank, Renasant, Tennessee Bank and Trust, and Avenue Bank. Other mega banks such as SunTrust are holding their own without any problems. Their conservative philosophy has proved to protect deposit holders and mortgage borrowers.

In this blog, I would never provide any financial advice (since I am not a financial advisor), but here's what I can say. BoA is the most problematic bank I've ever worked with in my real estate career, whether they were providing a mortgage for my buyer, or whether they were providing a mortgage for the buyer of one of my listings. They have never closed any of my transactions on time, appraisals have come back significantly lower than contract prices (and comparable homes in the area), and they seem to disappear whenever there are problems.

Things in the mortgage area are so difficult that my sellers are now stating that they "will NOT accept a financing contingency on their house from a buyer if the buyer is using Bank of America for their loan." A sad commentary on what was one of the strongest business entities in the U.S.

In the short sale world, BoA representatives are difficult to reach by phone and/or email, and their customer service leaves very much to be desired. A few months ago, there was a rumor that BoA was hiring out of work contractors, hair stylists, day laborers, etc. to man the phones. And when one person in one department was dealing with a problem, another person was stating that the problem could not be resolved.

Very reminiscent of Dell Computers several years ago, Michael Dell came back to Dell as the CEO and has apparently improved operations and customer service. Can this possibly happen to BoA? I'm not sure. Maybe BoA has gotten too large and so fat that it cannot be moved. Perhaps BoA is now more like the Titanic, and cannot be turned around. What should happen now?

People in real estate have varied opinions of the banking giant. Some believe that BoA is the strongest mortgage lender around; others disagree. If nothing about BoA's problems is significant, one thing is for sure: There are a lot of scared people out there.

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For a savvy real estate agent to help you with all of your real estate needs, contact Jack Jernigan at 615-373-2044 or through email at jack@jackjernigan.com.

My New Favorite Mexican Place

After such great experiences at Chuy's and Sopapilla's in Franklin, and El Mariachi in Nashville, I wasn't sure if there would ever be any reason to have another Mexican restaurant in Middle Tennessee.

A few weeks ago, I was showing property in Nolensville. After leaving my clients to return to the office, I stumbled on Oscar's Taco Shop in a Nolensville strip mall. I stopped, more out of curiosity, and I'm glad I did.

There are multiple Middle Tennessee locations. To find out where Oscar's has shops, check out their site by clicking HERE.

I'm a shredded beef lover and am frequently disappointed when a Mexican restaurant does not provide that on it's menu. That's why I love El Mariachi (on Thompson Lane near Sidco). I can always count on them to have a shredded beef chimichanga.

When I got to Oscar's, the place was loaded with people. While there was nothing really special about the atmosphere, almost every table was full, and the aroma of delicious Mexican food was in the air. I was drawn into this new and fascinating place.

I ordered the shredded beef tacos for lunch at the Nolensville location. A few weeks later, I went to the Cool Springs location (across from Centennial High School) with friends for breakfast and had the shredded beef burrito (with egg and cheese) for breakfast along with fried potatoes. And I've returned to both locations since.

While the locations are pretty basic in appearance (laminate tables and benches, neutral paint colors, tile floors), the food makes the trip there worthwhile. This is a place I whole heartedly recommend. It's some of the best Mexican food I've ever had. Most of Mexican in the states is more of a Tex-Mex. Not so with this establishment. It's more authentic than others. Give it a try. You won't be disappointed.
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Give Jack a call if you're looking for real estate or want to sell. Jack knows the Middle Tennessee area, understands the mindset of people here, and is an expert in his field.

Do You Know What Today Is?

In my list of crazy calendar days, today is "National Compliment Day". Who knows where this came from?! I sure don't. And it must be something to it because it can actually be found online. CLICK HERE for a quick link to the info on National Compliment Day.

Who can you compliment today? There's no doubt that everyone needs a compliment every now and then. Whether mean or nice, everyone can use a nice pick-me-up today.

Is there someone in your office or place of work who has done a great job? Or how about your son or daughter - are you proud of them? What about your spouse? Or a friend, parent or other relative?

And there is one additional person you need to compliment - yourself. How many times have you patted yourself on the back said, "Great job!"? Isn't it time?

Go out and have a great day today. Give someone that lift that they need. Maybe they'll pass it on.

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If you are looking for a person who is positive but realistic about real estate, give Jack a call at 615-260-3599. He'll help you with all of your real estate needs.

Tips for Buyers

In the current real estate climate, it's easy to assume something is a very small and unimportant detail, yet it's those small details that prevent buyers from buying houses and that causes sellers to get their hopes up for a sale.

Over the years, I've compiled a list of things that make buying a home much easier and stress-free for buyers, and I wanted to share those with you:

1 - Be transparent with your real estate agent. If you already own a home, but don't want to sell it to buy the next home, tell your agent what kind of loan you have on your current house. FHA does not allow buyers to own two FHA-backed homes at the same time.

2 - Use one of the mortgage lenders that your real estate agent recommends. That way, the agent is assured that the loan officer and bank are reputable, will be honest with the buyer up front, and will get the house closed.

3 - Follow the process that your agent provides. I have a 10-step plan that I utilize with ALL buyers that makes the home-buying process a stress-free and easy process. Both novice and experienced buyers love this process and have said it was the easiest way to buy a house.

4 - Insist that your loan officer be open and honest with your real estate agent. General protocol is that this happens, but occasionally you will run into a loan officer who declines to reveal anything to the agent. If there is a potential "glitch", then the agent needs to be able to ward that off ahead of time.

5 - Do not feel that you have to disclose personal information such as income, debt, or credit score. Agents do not need that information. All we need to know is the amount you can spend on a house, the down payment, closing cost needs, time frame to close, and if you have to sell your current home.

6 - Hire the agent who is helping you buy your home to help you sell your home. Those agents are much more motivated to get your home sold so your next purchase can close easily.

7 - Ask questions if you don't know the answers. If something doesn't seem logical to you, then ask your agent about it. The agent should be able to answer your questions or find the answers very quickly.

8 - Be patient and allow the process to take place. Sometimes buyers want to rush things or drag them out, but that's not necessary. Typically, it takes about 30 days to get a purchase closed, and with today's stringent rules, it may take a little longer.

9 - Trust your agent. Sometimes buyers think that the buying process should/could take longer than it should. If an agent suggests a deadline to you, then follow that deadline because there is a reason why that deadline was suggested.

10 - Relax. Purchasing a home can be stressful and challenging, but try to relax during this process. By allowing the agent to lead you through it, you can rest assured that things are being taken care of.

These are just ten suggestions that help buyers make a purchase. In our current culture, banks and the government have made the process a little more challenging. By hiring the right agent and learning to follow his advice, the process can go from challenging and stressful to joyful and relaxing.
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Jack Jernigan is an agent who makes the home buying process an easy and stress-free one. Jack knows the market and how sellers think. For all of your real estate needs, give Jack a call at 615-373-3513 or contact him via email: jack@jackjernigan.com

Nashville Does It Again!

I'm proud to be a Nashvillian. Not that I actually live in Nashville, but living in the metro area gives me the right to say that I am Nashvillian. Aside from being too far from the ocean, I actually love it here.

Nashville makes me proud because she's always evolving and changing, mostly for the better. Just recently, Forbes.com ranked Nashville as the fifth most affordable city to live in. To check this out, CLICK HERE. You'll find the article interesting.

And then, The Daily Beast ranked Nashville as the number 22 smartest city in America. Not too bad considering we compete with some major braniac cities around the nation. You can see the synopsis HERE.

Nashville is also the fourth real estate market most likely to appreciate, according to the Local Market Monitor. CLICK HERE to see the slide show. We've never had the major depression that other real estate markets have seen, but we have dropped a little. But we're on our way back.

Travel and Leisure magazine ranked Nashville one of America's favorite cities. We rank the friendliest city in the nation. Click this LINK to see the report.

According to a study done by Central Connecticut State University ranks Nashville as the 11th most literate city in the nation. Take a look at the top 20 HERE. This is a compliment considering Tennessee has had it's educational challenges.

Whether you live in Nashville or a suburb near it, we're all Nashvillians at heart.
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If you need help with real estate, give Jack a call. He knows the market and the area.

Tennessee Ranks Up There

Site Selection magazine listed Tennessee as the SECOND BEST STATE in providing a climate to do business. North Carolina was #1. Not so bad for this mid-south state, which ranks low in education and high in divorces per capita. I'm thrilled that we excel at something worthwhile.

To read the article in The Tennessean, go to THIS LINK.
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Trust your real estate needs to Jack Jernigan. Jack knows Middle Tennessee and keeps up with what's going on in the area to make your home purchase or sale a profitable one for you.

Thoughts About the Mid-Term Elections

Dear friends,

Our country is at a crucial crossroads and tomorrow will decide our future for the next many years.

Over the last several years we have bailed out banks and auto manufacturers, tried to bail out the housing industry, spent much more money than we could ever fathom in three lifetimes, and our Congress is at odds within itself, providing a very dim future for my children and grandchildren.

To be honest, very little of what has happened inside Washington beltway over the last few years has been productive. Americans are divided, Republicans and Democrats are blaming each other, people who want fiscal responsibility are getting a bad "rap", and nothing is being resolved.

American is not a perfect place, but after having personally seen destitute third-world countries where people have nothing, by comparison, we still live in the greatest country on this earth.

While I tend to be more far-right in my beliefs, the American people, in general, tend to be a little right of center. Our Congress no longer reflects the will of the people, so I am asking you, my friends, to vote tomorrow. Let's get America where she needs to be again by electing representatives who will guide us back toward where Americans stand.

Will everything ever be resolved? No. We are an imperfect people living in an imperfect country. But we can do our best. This is the time to vote, and then to make your thoughts and desires known to those who represent you.

When I lived in Davidson County, I contacted my congressional representative. That person was willing to meet with me privately, but was not willing to hold a town hall meeting to hear from the majority of his/her constituents. He/she said that no town hall meeting would be held because he/she wanted a "controlled environment". That tells me that the representative knew what the constituents wanted but was unwilling to hear us out. That representative voted in favor of a unpopular bill and now tries to uphold an image of a "friend of the people." That person is coming up for re-election and should be voted out.

The purpose of this letter is not to sway any of my friends to vote for a specific candidate, but it is to share that we DO NEED CHANGE! It is time to take a stand, America, and to take back our government. And if the ones we elect this time do not do the job, they need to be voted out the next time, too.

Until 2008, I was never an actively political man. However, after seeing the path that our country has taken, I firmly believe that ALL AMERICANS should take a stand for ourselves, our families, our homes, our jobs, our economy, and our freedom, as defined by the Constitution of the United States.

Sincerely,

Jack Jernigan

Home Sales Slip Nationally in July 2010

Nothing burns me up more than misinformation. Unfortunately, our media have fallen into the bad habit of generalizing the entire nation's economy and housing market with just a few examples of desperate markets across the nation. Yesterday's Tennessean printed an AP article that cited that July's home sales were the worst in 15 years.

While this statistic can be very accurate, the Tennessean was remiss in reporting what the Middle Tennessee market has done and is doing. Laziness in fact-gathering perpetuates nothing less than accelerated and unnecessary fear among our citizens.

Here are the facts for Middle Tennessee:

1 - There are 99 different regions in the Middle Tennessee Multiple Listing Service. Statistics are for all of those areas combined.
2 - Average SALE PRICE for July 2009 was $199,534 for residential homes, selling at 95.09% of list price with an average of 107 days on the market.
3 - Average SALE PRICE for July 2010 was $213,641 for residential homes, selling at 94.91% of list price with an average of 95 days on the market.
4 - There was an increase of $14,107, an INCREASE of 7.1% in sale price.
5 - In both months, the sale price was about 95% of list price. That screams consistency in our market.
6 - Sales in July 2009 were 2640; in July 2010 they were 1962, a difference of 26%.

Is this cause for alarm considering the INCREASE in sales for the first five months of 2010? No. In ANY market, what goes up, MUST come down. First-time home buyers RUSHED to get their homes closed prior to the June 30 deadline. It makes sense that there would not be as much activity in the month immediately following that deadline.

Personally speaking, I have helped several first-time home buyers buy homes this year. In fact, the last three closings were first-time buyers. NONE of them qualified for the tax credit because they bought after the June deadline.

With the "facts" that the media uses to justify it's articles, it is easy to see why people are afraid of our economy, but there is no justifiable reason for this fear.

Is our market lower and slower than it was three years ago? Yes, it is. There's no denying that. But has it "tanked"? No, it hasn't. Yes, it's down some, which should have been expected. There is no reason why we should expect any market to stay high all the time.

With this being said, there is hope. Not only do we have a fairly stable market in Middle Tennessee, rates have NEVER been lower. At only 4.25%, this is a great time for people to buy homes. And it's also a great time for people to sell homes. What's stopping you?
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Working with buyers and sellers in today's real estate market is what Jack Jernigan does best. He knows the market and expertly guides buyers and sellers through the buying or selling process. If you're looking for a competent and professional agent to help you with a real estate need, give Jack a call at 615-373-3513.