Your loan modification will not get approved

Hello again, thanks for reading! Here we are almost two years and 19 known loan modification denials later. Back in April 09 we started a discussion about loan mods, short-sales and the TARP bailout, thinking we were at the bottom and help was coming, but things have not gotten any better.....for the middle class anyway. Banks have made some money, the wealthy have done pretty well with the tax cuts, Gov't incentives, and of course, their personal investments, all while the middle class have lost most of their life savings. So who is to blame, Goldman Sachs, the US Gov't, the man on the grassy knoll, or Bernie Madoff? Well it was Bernie Madoff of course. He took $ billions, lost it and went to jail for 1000 years, while Wall Street took $ billions, lost it, and was rewarded with $ billions in incentives and bonuses. Want to read more about this? Matt Taibbi's Feb. 2011 Rolling Stone article entitled, "why isn't Wall Street in jail" will be available online tomorrow? Get your barf bag or punching bag ready, it is disturbing and anger management material for sure.

Sorry, back on track here. As of Feb. 2011 we see that many large banks have made money and paid back their borrowed TARP funds, which means the government and banks have some liquidity and should be helping homeowners soon, right? Not so fast, we need to dig a little deeper and well see that the largest holders of US Treasuries are China, Japan and the UK. So that means the real benficieries of the TARP bailout were Wall Street executives, China, Japan and the UK, not US home owners or the US economy.

So what does all of that have to do with short-sales, loan modifications, foreclosures and the millions of us home owners who are still struggling to make our mortgage payments? A lot actually. First, please understand that we need the rich to make their money and spend that money in order to support and stimulate the economy. However, we also need regulations on them which benefit the middle class. For example, lending us money at 1% rate or modifying our home loans. But we simply did not get that during or after the TARP bailout, worse yet, we still cling to the dream that we will get help in the near future. Unfortunately, I just do not see it happening as Banks are not being forced to help us. They have been "asked" to help us, but are simply refusing without penalty. They are taking back homes through foreclosure in record numbers, while the Gov't scambles and spends $ billions more on useless programs that never seem to work. Worse yet, Real Estate Brokers and Attorney's across the country spent $ millions advertising help for home owners through loan modifications, but in the end took a mountain of cash for up front work that was never completed. Again, why were the loan modifications never approved you ask? Well, because the banks make more in a foreclosure or short-sale and because the Gov't simply cannot force the banks to help us, as we are a free and capitalist economy.

There are many options available to us, from moving our cash to smaller local credit unions and choosing to short-sell our homes, so that we can live to fight another day. Whatever you choose, make sure you do your homework first and Never pay cash up front for services "to be rendered" as it has historically ended poorly for the middle class.

How to control your 3 year old

I watched a small part of a great episode of super nanny last night and had to write.

My 3 year old is outgoing, active and very very very stubborn. It takes the wife and I 14 tries to get him into the car, to the dinner table, to get his shoes on, etc. He is on his own schedule and we are losing our patience. I am aggressive with him and will spank lightly, yell quietly (if there is such a thing) and of course the wife just blows a gasket. Turns out we are just creating more aggression and stubborness. Here is what to do.

1. Talk quietly: Kids get anxious and aggresive when we do it to them. We are the adults and should not be yelling, not be hitting and especially not be losing our patience. We are supposed to be quielty responding to their frustration or anger, which is supposed to calm them down.

2. Time Out: I am from the era when a good ass whoopin was in order, but I am not sure I believe that anymore. When I am aggressive with my son the only thing it teaches him is to be more mad at me and the world. And second, that it is ok to spank, hit, etc. It took a while but I honestly think my boy is more afraid of the time out or me taking away his favorite toy than anything. So now when he does something bad I sit him on a the steps for a time out.

3. Explain: I am a good communicator, turns out only with clients and friends and family. Three year olds need a good explanation to really get it. They are sponges and curious as to why the door has a handle and why the TV remote is not a phone or play toy and of course why he cannot dance on the counter while I am making breakfast. Explaining in detail the why and why not's of things seems real simple, but try it tomorrow. No raising your voice, no spanking or hitting or grabbing (as I have seen some parents do in public) and just explain it to them. I am seeing a difference already in only 1 full day of me acting like a caring adult and not a pissed off dad!

Make it a great day!

Start a Business for dummies Part 1

Who better to give free advice than a failed and then successful businessman and where better to get free advice than the internet and some random blog?



First things first, starting and owning a business is very hard, time consuming and expensive. Do not believe anyone who says it is a easy, it is not easy. However, with some free business 101 coaching for dummies, you can get a feel for what it really entails. If you have the drive and opportunity, make a go at it.



Location: Look in your local market, that creates a sense of community, authenticity and of course low traveling costs in this over priced oil/gas world. Local business men who meet and greet their clients over and over again are more likely to succeed because of repeat business, comfort level and of course ease of vicinity. No one has done it better than Howard Schultz, founder of Starbucks. He was trying to and did succeed in creating a local, comfortable place to grab a cup of joe, hang out and talk shop for hours. If you have not heard of Starbucks, seen 1 or 2 or maybe even 3 on your street or near you, you are from Mars. Now that is what I call a successful business.



What Business: First, make a list of what you love to do and I mean everything, from playing guitar hero 3 to cleaning toilets. There is almost always someone, somewhere in need of what you have to offer. As Dr. Suess said in The Lorax..."A thneed's a fine something that all people need". My 3 year old loves that book. Now, if loving that book were only a career choice my boy would be in great shape.



After that list is complete, look in your local market for competition of those things you love. Ex: making teddy bears like the crazy loon on Nip Tuck. Cleaning toilets, selling soap, fixing Mercedes transmissions. If you are lucky, you might find no competition and a niche market right out of the gate.



Personality: This is last but certainly not least. Do you have the personality traits of a successful person? Notice I did not say entreprenuer, that is not necessarily the key ingredient to success. I have seen plenty of businesses fail because of bad location and no love for the product being sold. Here are the tell tale signs that you can make it. Can you walk up to a stranger at the gas station and say hi? Can you balance your checkbook? Does your checking or savings account have a positive balance? When times are tough on your current job do you quit or find a solution and make it happen? Do you have a supporting spouse? These items matter because when times are tough you need be able to tighten your belt, borrower from yourself, get in front of people to sell yourself or your items, and of course, if your life at home is solid you will have more time to dedicate to running a successful business.



Part 2 will look at Real startup costs and how to finance your dream.



Good luck and make it a great day!