This cozy little BBQ place really satisfies the desire for good ol’ Texas BBQ.  Having spent years driving to Johnnie’s mobile BBQ wagon on Saturday mornings to get a couple huge brisket sandwiches, we’ve missed the mouth watering taste of that Texas treat.  (Okay, so Bird Dog says it’s Oklahoma style, but we won’t dredge up that old rivalry.  :-)  Mesquite or oak smoked, it all tastes great! ) Well, no more waiting!  Colorado Springs loves Bird Dog BBQ and so does my family.  Great pulled pork, brisket, and links and a unique wasabi BBQ sauce that adds just the right tang to your sandwich.  Give it a try.  They are located at Stetson Hills and Powers but I read recently they just opened a new location at Shops at Briargate too.

There is a new trend in some areas that have been especially hard hit during the past 4 years - people who are current on their mortgages walking away and letting the bank take back their house.  In the early 1980s this phenomenon was happening in Houston, TX, where we lived at the time, because home prices dropped all over the city and surrounding communities and people who were unable to sell their homes for what they owed simply walked away.  Some neighborhoods looked like Phoenix and Florida do today with foreclosure after foreclosure lining the streets.  Here is a link to a recent article from Realtor.com about the risks in doing this.

I was looking at information for a client on a home listed in our MLS and realized this home and seller were representational of the worst case situations that have been happening in the past few years.

They bought their home in 1998 for a great price, enjoyed having it appreciate to a current tax valuation $116,000 more than they paid in 1998, and then drained it of equity in 2002 and then again in 2006 by taking out large 1st and 2nd loans.  I don’t know the reason they did this, but it is very sad.  Sometimes people lose their job.  Sometimes they have huge medical bills to pay off.  Sometimes they use the money for other investments.  And sometimes they just treat their home as an ATM and the money ends up wasted on depreciating cars, boats, furniture, and just stuff.  And when the market changes, they are stuck and end up in foreclosure because they can no longer afford their payment.

In this case, the owner borrowed what the house was worth and did it not once, but twice.  And they didn’t use just a single mortgage, they used both a 1st and 2nd loan each time.  Remember my last post about easy money?  They were put at risk by risky loans.  I wish I knew what their story is.  Why would they do this to themselves?  The refinance in 2006 was at a variable rate over 1.5% higher than their 1998 rate.  And what was wrong with their 2002 loans that they would refinance and accept such a high rate in 2006?  Was their 2002 rate even higher?  Were their 2002 loans even riskier types of loans they were trying to get out from under?  Did they just want another $28,000 out of the house that they got by refinancing in 2006?  Why did they trust the lender who put them into these loans?  Did they realize they were putting themselves at risk?  Did they care?  Was it out of desperation?

Their 1998 rate was  fixed and they put 5% down.  They did everything right when they bought the house, but then 4 years later, everything seemed to start going wrong.  They ended up filing for foreclosure in 2008, actually managed to get a loan modification, and then went back into foreclosure in 2009.  Which, by the way, is not an uncommon occurrence.

The sad thing is that if they had stuck with their original loan, by fall of 2008 they would have paid it down by over $23,000 and with over $100,000 in appreciation, they could have sold in 2008 and walked away with cash in their pockets.  Their loan to value ratio would have been only 54%.  They would have owned 46% of their home 10 years after buying it!  Even if they had taken equity out to update the home, they still should have had plenty of cash when they sold.  A very sad case indeed.  And now an opportunity for someone else who buys their foreclosure.  Watch for posts in February about my free consumer seminars to help you avoid being one of these sad cases and instead be a story of real estate success.

First, let me share a little history lesson.  The change in the markets the past few years is now affecting what people are buying when they do buy a home.  During the roaring 90s when the dot com industry rose, people had a lot of extra cash in their pockets and built homes to reflect their desires.  Showy, big, extravagant homes dotted (that is a pun ) the landscape, especially in California.  Then the dot com bubble burst starting in 2000 and the market changed.  Investments in the stock market tied to technology went poof and bank accounts dwindled.  Real estate then became the go-to investment arena and we all know what happened.  Real estate prices escalated until 2006.  In markets like CA, FL, AZ, and Las Vegas, prices were surging 30-40% per year and those who were actually awake during that time realized what goes up must come down.  I personally could not believe that interest only loans were being used by consumers to purchase the home they would be living in.  Interest only loans are a strategic product used by real estate investors to manage cash flow.  I don’t think that description applies to most of our neighbors.  So what does all this have to do with smaller homes?

Just think how different the real estate market and our economy would be today if we had foregone the speculation of the past decade.  Did you know 1 in 4 homes was sold as an investment during the go-go years?  That’s 25%.  Do you think that had an impact on pricing?  Absolutely.  Just like tulip bulbs in Holland centuries ago.  We Americans went around with blinders on because getting money was so easy and we didn’t want to believe it could end.  But just like the dot com bubble, it was an upside down pyramid and collapsed under it’s own weight.  We ran out of buyers who could buy at such frothy prices.  Fortunately, in some markets such as Colorado Springs, we had more steady increases in prices and never saw huge increases, so most homeowners can weather the current market.  But even here prices have dropped about 20% on average over the past 3 years and people who bought at the height of the market are underwater unless they had a large down payment or have been making extra principal payments since they bought their home.  If they can stay put, they’ll be okay.  If they have to sell, they have a problem unless they can bring cash to closing.  For some, hardship will allow them to qualify for a short sale to avoid foreclosure.  Sadly, others will lose their homes.

So back to my question.  What would the market be like if the housing market had been steady instead of the scenario we did have?  First off, not as many people would own homes or if they did, they would own smaller homes than they purchased because they wouldn’t have based their decision on an expectation that their home was going to appreciate in the double digits every year and make them rich.  Home ownership DOES make people rich, but it is a slow steady process that lasts a lifetime.  The other thing we would have seen is smaller homes because they would be more affordable.  In some places, like California and Hawaii, they’ve had to keep home sizes smaller in general because land is so expensive.  If speculators hadn’t driven up prices buying properties with loans that required no verification of income or assets, more people would still be in their homes because they would have been given those loans based on more realistic requirements.  Hind sight is always 20-20, and looking into the past shows us a process that was totally out of control.

Fortunately, our economy provides the answers and we will dig ourselves out of this mess.  Without buyers who can or will pay inflated prices, home sellers have had to reduce prices in order to sell.  Many people who would like to sell have kept their homes off the market for now, reducing inventory, which will help with recovery.  The market is winding down, although in some places, it definitely crashed.  At some point we will reach equilibrium.  We are getting closer, although there are still more foreclosed homes coming to the market that will keep prices down for the next few years.  As prices have come down, people who didn’t want to or couldn’t buy when prices were high, are now finding that homes are affordable.  The rate of affordability has increased.  Builders will build smaller homes to entice first time buyers and seniors who are downsizing.  The other good thing that has happened is that people have started saving again and are being more cautious about buying.  Loans aren’t as easy to get and people have to jump through hoops to prove they can pay their mortgage in order to get a loan.  Many people will wait until they feel more secure in their work or feel they will be in the house long enough for buying to make sense.  But more people who didn’t think they could ever afford to buy, can now find homes within their means.  And ultimately we will help the environment as green technologies become more prevalent in building and remodeling and energy efficiency becomes more important.

If we keep the recent market lesson fresh in our minds, what has happened can prove to be a good thing because it is changing how people view money.  Perhaps individually people will remember and not allow themselves to be drawn into craziness in the future.  New homes built will be smaller so that builders can keep prices where buyers can afford to buy.  Condo owners will ultimately be helped as people discover that is an affordable option in not so affordable markets.  As baby boomers retire they will still want 2nd homes and that will once again help the Florida, Arizona, and condo markets recover.  Some baby boomers will retire to smaller, more affordable communities and will help the economies of those areas where their spending will create more jobs.  First time home buyers have a fantastic opportunity right now to get into a home at lower prices and amazingly low interest rates.  Even when the $8000 tax credit ends, homes will still be affordable.  But that still doesn’t mean everyone should buy.  It still needs to be a careful decision.

For those who can’t buy yet, investors are buying foreclosure and short sale homes and renting them out, so renters will find more choices available to them.  Investors will be part of the solution as well.  So there is light at the end of the tunnel.  Now is the perfect time to put money aside and plan to one day be a homeowner or get that 2nd home or move up to a bigger home.  With planning they are all great choices.  If you are in a position to act now, congratulations!  This will prove to be one of the greatest opportunities of the 21st century.

Did you ever want to be an astronaut?  Do you get feeds from the NASA website regularly?  Are you a space geek?  Then get to the Fine Arts Center soon to see the current exhibit on the history of NASA.  I love looking at Hubble photos and have used them as inspiration for ATCs (artist trading cards).

Here’s where you can find a list of important changes to credit card regulations intended to protect consumers.  Changes Set to Protect Credit-Using Consumers | RISMedia  I don’t know about you, but the fact that you could be a few hours late with your payment and could end up being dinged by “universal default” so that all your card rates go up, is a practice by credit card companies that I have considered very underhanded.  Universal default still exists, so look at the new rules to see how it is applied.

With the new rules, as long as your payment is received by 5pm the day it is due, you are considered to have paid on time.  Plus, if your payment due date falls on a Sunday or holiday, you get an extra day added to your due date.  The other thing I think is an improvement is that the credit card companies have to mail or deliver your bill 3 weeks before it is due and they have to give you a consistent due date.  That will help everyone who uses electronic bill payment services so you can set up an automatic payment and never be late again, which can help raise your credit score.  If you only pay the minimum due, you will still take years to pay off your balance, so make a plan to get those balances down and don’t use the card until you pay off what is owed.  Paying interest is a lost opportunity for being able to buy fun things you want.  Instead you get nothing for your money except a bill every month.  The best plan is to pay off your balance every month.  If you can’t do that, figure out why not.

People under 21 will now have to show proof of financial ability to make their payments or have a co-signer to get a card.  Let’s hope this rule helps a lot less college students and young people get in trouble with credit cards which damages their credit at a young age.  Plus you start out in life behind and never seem to get ahead.  Very sad way to start adulthood.  Financial responsibility goes a long way to helping you have a less stressful life.

There are needs (food, transportation, shelter) and wants (video games, top of the line mobile devices, name brand clothing) in life and wants will never be needs.  Too many people have been using credit cards to buy wants they can’t afford.  Maybe as a country these rules will help us individually get our priorities straight and we can tell Congress to get their spending priorities straight as well so that the next 3 generations aren’t bankrupted.  Not many of us, government included, have a pocket full of blank checks with endless resources to pay off debt.  But that’s another topic.

I was sent this article today and thought it was quite clever and deserved a wider audience.  If you know who the author is, please let me know so we can give credit where it is due.  Enjoy!

A New Element Added to the Periodic Table

Research has led to the discovery of the heaviest element yet known to science. The new element, Governmentium (Gv), has one neuron, 25 assistant neurons, 88 deputy neurons, and 198 assistant deputy neurons, giving it anatomic mass of 312.

These 312 particles are held together by forces called morons, which are surrounded by vast quantities of lepton-like particles called peons. Since Governmentium has no electrons, it is inert; however, it can be detected, because it impedes every reaction with which it comes into contact.

A minute amount of Governmentium can cause a reaction that would normally take less than a second to take from four days to four years to complete.  Governmentium has a normal half-life of 2-6 years; it does not decay, but instead undergoes a reorganization in which a portion of the assistant neurons and deputy neurons exchange places. In fact, Governmentium’s mass will actually increase over time, since each reorganization will cause more morons to become neurons, forming isodopes.

This characteristic of moron promotion leads some scientists to believe that Governmentium is formed whenever morons reach a critical concentration. This hypothetical quantity is referred to as critical morass. When catalyzed with money, Governmentium becomes Administratium, an element that radiates just as much energy as Governmentium since it has half as many peons but twice as many morons.

Happy New Year and Welcome to 2010!  Tear off your rear view mirror and start driving with purpose.  I am very excited about the new year.  I have plans for myself and my business.  Real written plans.  Do you?  So I have my map and I’m going to use it to get to December 31, 2010 and applaud what occurred during the year.  I spent a few minutes reading through some old posts on my blog and I realized that one theme came through - be positive and believe in yourself.  Yes, that can sound trite, but if you don’t have a vision of where you will be 12 months from now, you will be in the same place or worse.  I plan to be in a better place even though I’m pretty happy with where I’m at now.  Success builds on success.  Let’s all have a plan for success in 2010.  Join me.  I’ll be waiting at the finish line next December with a glass of champagne in my hand.  How about you?  If you need a little motivation, just come back here and start reading.  We’ll keep the positive vibes coming for you.

What is a CRS?  Find out here:

I have been extremely remiss in posting recently.  Life events have taken over, but I’ll try to be better in the future.

I always like to try to understand how other people perceive the world and I have many sites that I visit to get that look at life.  Sometimes I shake my head.  Sometimes I nod in agreement.  We are a very diverse lot in this country in how we see the world and what is important to us.

I was visiting the blog on The Quilt Show today and saw this life list of lessons from Regina Brett.  A lot of common sense in 45 lines.  Thank you, Regina, for sharing your insight.  I am happy to send people your direction.  For more about Regina, visit reginabrett.com.

Here is her list of 45 lessons which was posted on The Quilt Show blog:

1. Life isn’t fair, but it’s still good.

2. When in doubt, just take the next small step.

3. Life is too short to waste time hating anyone.

4. Your job won’t take care of you when you are sick. Your friends and parents will. Stay in touch.

5. Pay off your credit cards every month.
6. You don’t have to win every argument. Agree to disagree.

7. Cry with someone. It’s more healing than crying alone.
8. It’s OK to get angry with God. He can take it.

9. Save for retirement starting with your first paycheck.
10. When it comes to chocolate, resistance is futile.

11. Make peace with your past so it won’t screw up the present.
12. It’s OK to let your children see you cry.

13. Don’t compare your life to others. You have no idea what their journey is all about.
14. If a relationship has to be a secret, you shouldn’t be in it.

15. Everything can change in the blink of an eye. But don’t worry; God never blinks.
16. Take a deep breath. It calms the mind.

17. Get rid of anything that isn’t useful, beautiful or joyful.
18. Whatever doesn’t kill you really does make you stronger.

19. It’s never too late to have a happy childhood.. But the second one is up to you and no one else.
20. When it comes to going after what you love in life, don’t take no for an answer.

21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don’t save it for a special occasion. Today is special.
22. Over prepare, then go with the flow.

23. Be eccentric now. Don’t wait for old age to wear purple.
24. The most important sex organ is the brain.

25. No one is in charge of your happiness but you.
26. Frame every so-called disaster with these words ‘In five years, will this matter?’

27. Always choose life.
28. Forgive everyone everything.

29. What other people think of you is none of your business.
30. Time heals almost everything. Give time time.

31. However good or bad a situation is, it will change.
32. Don’t take yourself so seriously. No one else does.

33. Believe in miracles.
34. God loves you because of who God is, not because of anything you did or didn’t do.

35. Don’t audit life. Show up and make the most of it now.
36. Growing old beats the alternative — dying young.

37. Your children get only one childhood.
38. All that truly matters in the end is that you loved.

39. Get outside every day. Miracles are waiting everywhere.
40. If we all threw our problems in a pile and saw everyone else’s,we’d grab ours back..

41. Envy is a waste of time. You already have all you need.
42. The best is yet to come.

43. No matter how you feel, get up, dress up and show up.

44. Yield.
45. Life isn’t tied with a bow, but it’s still a gift.”