Manny Kagan

You Cannot Reverse Age, But You Could Possibly Reverse a Mortgage

“Wine and cheese get better with age. How about people?

Some do.

Others get wiser.”

Marcelo at 95

A few weeks ago our telephone rang at 7:30am on a Sunday morning. The Caller ID showed the call was coming from New Jersey, so I knew that it was our dear friend Marcelo. He beat me to wish me a “Happy Father’s Day.”
Marcelo is turning 97 in August. His wife died some years ago, followed by his girlfriend. Now he has a new one (a younger woman, of course). When I asked how he is doing, he said without complaining, that his sight is not good anymore and he had fallen down, broken his nose, and needed stitches on his forehead.

But he added “I am alright now”.

“I do not hear well”, he continued, “and when I fell down my hearing aid broke. But I am getting a new one which works better”, he added. “I have difficulty bending down”, he said, “but a young woman comes over every day now to help me”.

And then he switched to politics. “Obama does not know what he is doing and World politics stink, but otherwise ‘Baruh Ha Shem’—Thank God everything is good”.
Marcelo has lived in many parts of the world and speaks seven languages. At the beginning of World War II, he lived in Paris. As a Jew from Lithuania, there was no way out (but through a concentration camp). One day, he was walking down the street and overheard a conversation between two men.

“You can go to the Argentinian embassy and tell the council that Victor sent you to get a Visa.”

Without hesitation, he did just that. A month later, he was on a ship to Buenos Aires. In spite of the many challenges in his life, he is always optimistic.
We came to celebrate his 95 birthday two years ago, and it was a great party.

Judy–Marcelo’s friend
A few months ago, Marcelo called and asked if we do reverse mortgages. We do. Reverse mortgages are loans, which can be given to persons starting at the age of 62. One does not need to have income or credit score to qualify. As long as there is sufficient equity in the property (preferably with no existing loans, or with a very small balance), borrowers can receive a substantial amount of money in the lump sum or in installments. I write about this program in more detail in my second and forthcoming book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved”.

A woman I met on the street

The cost of getting it and the cost of mortgage insurance is deducted from the amount of the loan before distribution. The interest is quite low and accumulates during the life of the recipient. When a person dies, if there is equity left, it goes to the heirs.

This program is not for everyone and since real estate values have dropped, many cannot benefit from this opportunity. After I explained to Marcelo how the program works, he decided against it. He thought he will manage and besides he wanted to leave more to his grandchildren. There are talks that it is going to be more difficult to get those loans, but so far, as long as there is lendable equity, some borrowers enjoy the money milked from their home, without the need to repay it.

I met this man at the Farmer’s Market in Gualala.

P.S.

I like to photograph wise people. Not only because of their wisdom, which is not always obvious, but also because many of them show their character without inhibition and do not pretend to be what they are not.

P.P.S
On my trip to Cuba in February, I met a lot of wise women and men—and so can you. We are going there again in December for the Havana Jazz Festival. You may join us.

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

What the Mortgage Industry Can Learn From Zuni Café

“We have only one stomach with a limited capacity, but our brain has no limits. We need to feed them both; so choose your food carefully.”

The meeting place

When I am asked which is my favorite restaurant in San Francisco, without hesitation—my answer is Zuni Café. Despite the misleading name, it is a large restaurant located on Market street (between Gough and Franklin Street). We’ve been going there for at least 23 years. In San Francisco, we are blessed with many great restaurants, and since we often eat out, we have been in many of them through the years.

We go to Hayes Bar and Grill for very good fish before concerts at Davies Symphony Hall. We go to Firefly, a neighborhood restaurant on 24^th and Douglas, for excellent eclectic cuisine. There is a new small Greek restaurant on West Portal called Orexi, where the food is as good as at Kokkari, downtown. There is a Vietnamese restaurant, The Slanted Door, in the Ferry building (and its smaller version, Out The Door, on Bush and Fillmore).Outerlands, is at the end of Judah street close to the ocean, and is one of the city’s jewels if you are willing to wait to get a table since they do not take reservations.

The list goes on and on. There are probably a few new ones opening as I write this letter! Restaurants are a tough business and to survive for a long time and still draw loyal customers is a very high achievement. (I am proud that our company—Pacific Bay Financial, which has been in business since 1985, is also in the same league.)

What makes Zuni Café so special is that they stick to the basics: good ingredients, a good diverse menu, very good chefs, well-trained employees (waiters, bartenders, and service personnel), systems and of course—the management.

But what the mortgage industry can really learn from Zuni Café is their speed of execution. On our most recent time there, we were seated in front of the kitchen and watched the action. The kitchen staff worked with such speed and precision. Everyone moved very fast, sometimes running with one goal in mind—to serve the customers.

Ugur Tartuk worked by the stove preparing the famous chicken for two and my fish order, and could work at every kitchen station. Meanwhile, Ken Turner conducted the food distribution process. Thanks to him, we got our orders in the shortest possible time.

I looked around and did not notice any regulators, who would taste every dish before it was served. And no one sends a customer’s iPhone over a hundred pages of disclosures, claiming that the food they are about to eat can cause an increase in weight and the wine they are going to drink can make them drunk. Such things are the customer’s choice; therefore, please do not sue the restaurant nor the rest of the world, if this happens. Regretfully, this portrayal is what is going on in the mortgage business.

And because the regulators enforce “financial protection” without any regards to the customers’ real needs, the mortgage process has become very tedious and slow.

I doubt if the mortgage industry will adopt the good service practice offered by Zuni Café and other good restaurants soon. Well at least after a stressful and tiring work day, we can enjoy a good meal with friends.

Adriane Harrison, who conducts the restaurant’s traffic, always greets you with a smile.

Gilbert Pilgrim, the owner, in a blissful moment.

P.S.

I decided to write this story on the spur of the moment while dining in Zuni Café a few weeks ago. The part-owner, Gilbert Pilgrim (who is a very good chef), was dining there as well, and I asked his permission to take some photos with my iPhone. I wish I could photograph everyone who always serves us with a smile. But meanwhile, enjoy some of the images.

The next time you have difficulty to make a reservation, tell them that you are Manny’s friend. If this will not work, call me, and I will use my connections.

P.P.S
Some of my clients are choosing a loan fixed for 7 years with the interest rate 3.375%, which significantly improves their cash flow. What are you waiting for?

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

Even When We Celebrate Independence, We Are Interdependent

“Too much light makes us blind — not enlightened.”

You are probably reading this the day after the celebration of the American Independence Day, which we usually associate with parties and fireworks. Bright sparks fill the dark sky and often it is a very spectacular scene. But if not for a dark sky, no amount of light would have the desired effect. During the Creation of the World in the Torah, God said:

“Let there be light” and there was light. God saw the light was good, and God separated between the light and the darkness. –Genesis 1:3-4

Every photographer knows that too much light can “kill the image”. Therefore, the best time to shoot photos is in the morning or in the afternoon when the sun is not so bright. To have an attractive image, there has to be a good balance between light and darkness.

Unfortunately, those who created regulations to control the mortgage loan origination process did not study photography. Those who created the Consumer Financial Protection Bureau, which resulted from the Dodd-Frank act, have no idea that too many disclosures in the environment, that is already flooded with information (light) will “kill” any information about the possible pitfalls that may result when getting a mortgage.

After the stressful process of finding real estate property and ensuring qualification for a mortgage, the borrower receives about 114 pages of the government’s regulator mandated disclosures online. Since the appraisal report cannot be ordered until these documents are signed and forwarded back, no one in their right mind will read any of those disclosures. So who needs them? And whom is the government trying to protect?

Meanwhile, our small mortgage bank hired 20 employees, headed by an attorney, whose job it is to ensure that the disclosure process is followed exactly as prescribed. Before the change, the bank’s underwriters could finish 5 loan applications a day, now only 1 ½. In the past, our processors could process at least 10 loans a month, but now with the added huge stress from the confusing paperwork—only 5.Who do you think is paying for the increase in costs of getting a mortgage? Ask yourself, do you need all this “financial protection”?

I love America. I love the Mortgage Business. I love my clients. I even like that more people are employed, but I do not like how regulators, who did not read “The Mortgage Game: The 5 C’s and How to Connect Them”, are telling all of us how to run the mortgage business.

P.S.

I like to photograph images with light as the subject. The photographs in this newsletter are part of my large collection. I hope you will soon be able to see more of my photo work, since I am planning to have a show.

P.P.S

The interest rates started to inch down. Do not wait until they get lower. Start the paperwork now.

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

Why Do We Hire When Interest Rates Rise? What Does it Have to Do With Images of Jumbo Jets?

“When I wake up in the middle of the night and see dark skies, I know that there will be light in the morning.”

There is always a story for every story (two in this case). I wanted to write about what is going on in the mortgage business, but needed another catchy story to go with it. Today, I received two calls from lenders describing their new Jumbo loans and I started to think about how to inform borrowers about them.

Meanwhile, as I mentioned in the last couple of newsletters, I still cannot access my photo images on my computer. Therefore, I am limited to what I can write about, since photos are an important part of my stories. The solution was in my pocket. Browsing through the camera roll on my iPhone, I found some photos of jumbo jets that I took during my last trip to Phoenix and, I thought they were a perfect parallel to the Jumbo loans that I wanted to write about this week. When we travel, I often photograph from the plane and have quite a few interesting shots that I have framed and am planning to exhibit one day.

Regarding mortgages, you might know that interest rates have recently gone up, and consequently slowed down refinance activities. We do have borrowers who buy new properties, as well as a few whom I can help to get loans without stating their income. Some banks have started lending these types of loans again, but one needs to know how to present their personal information to qualify.

Regarding Jumbo loans, there was an article in the Wall Street Journal pointing out that those loans might be better priced than conforming loans. The Federal Government who owns Fannie Mae and Freddie Mac does not know what to do with them, and the only reason why the interest rates stayed low was because the Federal Reserve was buying mortgage bonds. When the stock market started doing better, the Fed sent a message that the bond buying might slow down, and mortgage rates consequently jumped up.

Most banks made a killing from the low rate mortgages. At the same time, higher rates will increase their profit margin, and they will not need to fund so many loans. This will result in mortgage-industry related layoffs. For banks, mortgages are just one of the profitable products in good times and losses in the bad times.

For us, mortgages are our lifeline. This is all that we do and we are very good at it. During the tough years from 2008 until the summer of 2010, we barely survived. (You can read more about that in my book, “The Mortgage Game: The 5 C’s and How to Connect Them”. )

I think that interest rates will come down again soon. We need to be ready. I strongly encourage you not to wait. Prepare the paperwork now. When it happens, no one will have time to deal with the volume. Besides, even today I can get you 3.25% fixed for 7 years. Who needs it for 30? Most people change it down the road, anyway. Many borrowers in our area have Jumbo loans (over $625,000), which have relatively low interest rates as well.

P.S.

Some time ago, I wrote about TICs (Tenancy in Common). According to a recent article in the San Francisco Chronicle, the San Francisco board of Supervisors introduced a significant change in the way TICs will be created in the future. All of these changes will affect getting loans for the purchase and condo conversions. You might know someone who might need my assistance. Lately I’ve helped quite a few borrowers with those loans.

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

We Are All Children At Heart

“If we are children at the beginning of our lives and behave like them at the end, who are we in between?

An adult is a child in bigger clothing, and who plays in a game called Life. Learn the rules, break them, and have fun.”

Sometimes you need more than 10 fingers to play

I showed my assistant Samantha some of the photos of children that I’ve taken with my iPhone, to which she remarked, “You have to use those images in your next ‘Good News’ with the title “We Are All Children at Heart”. Luckily, this is the perfect fit for what I wanted to write about. Children play games, as do adults. This is why I titled my first book, “The Mortgage Game: The 5 C’s and How to Connect Them”. I’ve mentioned in my previous newsletters, that I used this book as well as my next one “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved” (which will be available as an ebook shortly–will keep you posted), to create an educational course: “How to Play the Mortgage Game and Win”.

A lot of people take their life and the process of getting a mortgage too seriously. It is all just a game. There are no winners or losers—just players. If you think you lost, practice, learn, and then the next time, you might win; as long as you have fun playing. It helps to know the rules of the game. I wrote two books to help you with the mortgage rules. In my class, there are 10 students, who have committed four Sundays to learn these rules. Of course, knowing the rules is not enough, one needs to practice. I have been playing the mortgage game for almost 30 years and every day I still learn something new.

child2
We have to learn to smile early in life

Keeping a diary is good practice for writers

My new clients John and Beth wanted to buy a house in Piedmont for $1,150,000. The house needed improvements, but both felt that it was still a bargain. John had a very good salary. Beth—who also worked, had the money. There were only a few issues to resolve. Both were still married to other people, and were going through divorces.

John owned another house for which, his (soon to be) ex made the monthly mortgage payments. When we ran his credit, there were three recent late payments on the mortgage, which significantly lowered his credit score. As a result, I could not use John’s income to qualify for a loan.

There was a possible solution—to find a bank that could do a mortgage without stating income, (unlike loans in the past that required borrowers to lie about their income) and with only Beth as the borrower. We work with a few lenders who can do these kinds of loans, which require a significant down payment. I collected all of the documents and took them to the lender, only to discover that they do not lend in Oakland/Piedmont.

Buying food can also be a game

An art connoisseur

The next bank I considered has a branch in Oakland, and could approve the loan with a 40% down payment. The next issue was time. The real estate agent negotiated a close of escrow in 25 days which is very difficult to perform. The bank said they needed 35 to 45 days. Then there was also the issue to be sure that the house would appraise for the agreed upon price. During the fast growing appreciation of home prices, there are not always three comparisons (comps) available to get an appraised value. Luckily, the real estate agent was able to delay the appraisal removal date as well as the close of escrow.

When my clients got stressed with all of these issues, my advice was to look at the loan process as a game. Try to have fun instead of getting aggravated.

P.S.

The images of children I took with my iPhone show just how much there is to enjoy in our lives, while playing a game.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

How to Celebrate Father’s Day

“Abraham is revered as the father of three religions: Judaism, Christianity, and Islam. Unfortunately, his children forget that they are brothers and sisters.”

In the Torah, there is a very disturbing (for modern readers) story about how God tested Abraham, whom he told that:

“You shall be a father of a multitude of nations.” Genesis 17:4

And then one day God said to Abraham:

“Please take your son—your only one, whom you love, Isaac, and bring him as an offering.” Genesis 22:2

This request obviously did not make any sense, but what is fascinating later on, it is said:

“And the two of them went together.” Genesis 22:6

Father and son walked together to their unknown destiny, where both of them were partners in the test.

I thought about this when on a trip to New York, I photographed a man and a boy in an over-sized jacket walking together.

One of the ways to save on gym feesIn our society, the celebration and recognition one day a year, Fathers, has become a commercial event. (Or perhaps it was created for this purpose?) Many live with the old stereotype that while the Mother takes care of the children, the Father is the breadwinner.

However, in these modern times, many of my clients have different circumstances. I refinanced a mortgage for a man who takes care of his two little children after his wife left them. I also helped a gay male couple buy a new home, both of whom work and raise their children together.

Joy of fatherhood is immeasurableI am now helping a couple with three children, get a mortgage for their first home. In this family, the husband is a stay-at-home dad while his wife pursues her business career.

I am blessed to have two daughters who love and respect me, and we celebrate our wonderful relationship all the time. And I know other families who have this blessed relationship.

Father’s gift is to help his wife shop

A friend of mine, Johanna Forman, a great architect who designed the interior of my new office (you may reach her at [email protected]), told me about her recent visit to her father, who lives in Maine. With great pride, she shared that he was one of the first African American fighter pilots who served in the Korean War. After the war, he went on to develop some of the first computers, and until now at the wise age of 82, he still enjoys a good life and gives his daughter investment advice.

I think the best gift one can give to his or her father is to share with the world the pride and love they have for one who gave them their life.

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

What Photography and the Mortgage Business Have in Common

“Focus on the results. Even when you want to create a photo image that is out of focus, the result is what you focus on.“

Wonders of nature

The word “photography” has two parts: photo, which means light, and graph, which means to draw (i.e. to draw with light).

The word “mortgage” also consists of two parts: mort, which means dead, and gage, which means pledge. (i.e. it is a dead pledge)

To be great at either taking a good photo or helping someone get a good a mortgage, one needs to keep the end result in mind.

Both occupations require a lot of patience and constant practice.

Mistakes are sometimes made, and it might take more than one attempt to get things right. In both cases, mistakes can be corrected as long as one knows how.

Information needs to be processed utilizing technology in order to get results.

Even though technology is involved, there is a need for paper.

Though photographers and loan originators can often do all the work themselves, assistants and processors are experts in their own field, and are great team members.

In both fields, light has to be shed on the dark areas. Sometimes there is a need to wait for a better time or circumstances.

The outcome is not always the expected one; nevertheless, it can still be very satisfying.

The Renaissance Man

I have no words to describe such beauty

Specific education can help, but an overall life experience can be an asset.

There is no compensation, until someone is happy with the results.

A good photo image evokes emotion, as does the process of getting a mortgage.

In photography, there are 5 connecting elements in each image: the subject, light, aperture, shutter speed and ISO.

In the mortgage business, there are the 5 C’s, that I describe in my first book,“The Mortgage Game: The 5 C’s and How to Connect Them” and explain in more detail in my forthcoming second book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved”.

And of course, both photography and the mortgage business have me, and I humbly try to bring you the beauty in photography and the tamed beast in the mortgage business together in the “Good News From Dr. Manny”.

I do not have a specialty as a photographer, but I am drawn to four subjects: street scenes, portraits, nature, and abstracts.

In the mortgage business, I am also drawn to four subjects: residential, commercial, apartment buildings, and construction loans.

The sky is the limit

P.S.

I included photo samples of each of the subjects, which I took with an iPhone. You can see more of my mortgage related photo stories in past issues of Good News From Dr. Manny.

P.P.S.

Peter Karp—my extraordinary money manager, expressed his opinion that the Federal Government will probably react to the investors’ rush to unloan bonds (including mortgage bonds). This might be the reason of the increase of interest rates. Rates may potentially drop again for a short period of time. You can prepare yourself by locking your rate. Just send me your loan documents. Please do not procrastinate. I want to help you help yourself and lower your monthly payments.

Please do not keep me a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

How Many Homes Do We Need to Own?

“Owning a home is a joy–and a headache. How much headache can you have if you have a second home?“

My answer to this question is very diplomatic—It depends. Do you need to be rich to own one home? Not necessarily. How about two?

In the mortgage loan underwriting guidance, a second home is located in a resort area, or at least 50 miles from the “first home”. Most big cities have areas where those who can afford to, spend their weekends. For families who live in the San Francisco Bay Area, some popular locations for second homes are Lake Tahoe, or closer to San Francisco, Napa Valley, as well as the Carmel-Monterey area. Some people own cabins in the woods.

We used to own a house in The Sea Ranch that I’ve written about in the past. In 1989, we bought our first “second home” there. Some years later after our daughter Tamar went to college, (and it was a challenging time in the mortgage business), we considered selling it, but it took a while before the market improved, and we could sell it and finally be free from obligation, which was a substantial financial burden.

But since then, we have returned to The Sea Ranch again and again, renting from those who somehow managed to keep their homes.

This area rejuvenates the soul.

When our older daughter, Alona visits us from Paris, we almost always spend a weekend at The Sea Ranch. Now, my wife Elfa and I are here for the Memorial Day long weekend. The house we are staying in is located on the bluff. Through the panoramic windows, we have an unobstructed view of the sunset. From the walk on the trails along the ocean, we get “drunk” on the fresh sea air.

Yesterday, Elfa asked “the question”. If we would have an extra million dollars, would we buy a house here again, which we do not have to rent to others to subsidize the mortgage payments?

For me “extra” means paying off some other debts plus over a million dollars in our mortgages. Since this might take a while, the only solution I see is to start buying lottery tickets in our neighborhood supermarket.

Nevertheless, I suggested checking out what is going on in the local real estate market. There were 26 homes that we saw listed at the real estate office (there are quite a few of them in the area). The Sea Ranch has different areas. We typically rent on the west side close to the water. This time we started with the homes on the east, hilly side and in the forest area. Suddenly, we had a completely different sense of what The Sea Ranch experience can be.

There are trails in the forest, where we picked mushrooms on our previous visits, and the area is close to the Gualala River, where we went swimming with our children years ago in our inflatable boat.

Some homes had secluded gardens, and some an ocean view.

Instead of the six-hour drive to Lake Tahoe, it takes only three hours to drive to The Sea Ranch.

According to our friend, the best local real estate agent, Cindy Kennedy, many buyers who buy here do not need mortgages. Like in San Francisco, where prices are close to what they are here, for the better properties, many buy with cash.

But for the few who need financing, getting a mortgage for a second home can be challenging. I offer solutions in my forthcoming book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved”.

P.S.

A few days before coming here, I discovered that my computer’s hard drive which contains all of my 45,000+ images, has “fallen asleep” and even the “genius” at the Apple store could not wake it up. Luckily, I have all my photography stored “on the cloud”. But it will take a while to download it all onto the new hard drive.

That means that I have the challenge to download some of the old images for the story that I’ve prepared and written in advance for this week. But like in the mortgage business, I found a solution.

The result is what you just finished reading and the photos, which I took in The Sea Ranch with my iPhone and simply emailed to my assistant Samantha, who puts together my Good News stories. It is amazing what this little box can do in capable hands. As you can see, my wife Elfa and I now photograph together.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,

Where to Find Real Estate Bargains

“Investing in real estate can make you richer or poorer. Timing makes the difference.”

If you want to make a killing—buy in Havana, Cuba. According to the article,“Real estate market booming despite hurdles”, you can buy property which will need a lot of repairs in a country where there is a scarcity of everything for the bargain price of $250,000.

The moment that the U.S government lifts the embargo (hopefully soon), and the Cuban government realizes that socialism does not work (in most countries), the value of properties in Havana will sky rocket. Havana’s buildings are dilapidated, but when they will have money from the expats currently living in South Miami, or perhaps investors from China (there are 2,000 people from China studying Spanish in Cuba), the faded beauty of the city’s real estate will return. Cubans have a joyful spirit, and when their fortune turns around, it will be like a hidden jewel.

In the meantime, you have the choice to be joyful in our own backyard.

According to the article in the SF Chronicle on May 1^st, 2013, “Home Prices in 20 U.S Cities Climb by Most Since May 2006”, property values in 20 cities rose 9.3 percent since February 2012. Meanwhile, according to the article “Getting Squeezed” in the SF Chronicle, “finding an apartment (for rent) in San Francisco can be harder than finding a job”.

For instance, one can’t help but notice on Market Street in San Francisco, there are 5 or 6 new residential construction projects, adding some 4,000 new available rental and condo units on the market. A new one has broken ground recently on the corner of Octavia and Market, close to the San Francisco Jazz Hall.

My friend Ildiko Pali, a real estate agent, who is the Queen of the short sales and foreclosures, told me that there are less and less foreclosures and thus fewer bargains. She can be reached at 415-923-7628 /[email protected]

I am sure it helps that the Fed is keeping the interest rates artificially very low. Rates recently dropped again and we could refinance those who’ve previously “missed the boat”. Do not wait. Without notice, the tide can rise again. (It actually did last week and rates went up, and we are now waiting for them to come down again; but we need to have your loan documents to lock the rate.)

P.S.

I photographed a lot of dilapidated buildings in Havana, as well as some that already look very nice after their restoration.

build5

build6

P.P.S

Meanwhile, if you want to check real estate opportunities (and to listen to good music at the same time), join us on a trip to the Havana Jazz Festival on December 15^th-23^rd.

SMILE AND PLEASE SHARE IT WITH A FRIEND

How Many Mom’s Do You Have?

“Since we traditionally give flowers on Mother’s Day to show our appreciation and love to our mother, how do we say “Thank you” and “I love you” to our Mother Earth, who gives those flowers to us?“

My beautiful wife and daughters a few years ago.

How many children do you have?” is a rhetorical question. My wife Elfa and I have two daughters. For Mother’s Day, we celebrated with our youngest daughter Tamar in LA. The next day when returned to San Francisco, and our eldest daughter Alona, flew in from Paris. But I also was blessed with two mothers (unfortunately both passed on). Mama Liza, a very loving person who gave birth to me, and with whom I lived with until I got married at age 20. At that time I moved into my wife’s mother’s apartment, who for the next 20 years became my Mama Masha. We traveled together on our life’s journey until her passing in 1987, as I describe in “The Mortgage Game: The 5 C’s and How to Connect Them”.

The title of this week’s writing was inspired by a talk given by a Family Law Attorney, Vivian Holley, who specializes in resolutions of friendly divorces and child custody, among other things, and whose name I’ve mentioned before. For a presentation to the bar association, Vivian wrote an article regarding the “40+ types of Parents Making up Today’s Family”. She mentioned that in our modern society, the old perception of what a family is, parenthood, and motherhood has changed. That transformation has an effect on today’s family relationships and on the court resolution of such disputes.

But there are also surprises in how many children one can have. On May 11^th, The Wall Street Journal reported that “Mrs. Dumont has 69 kids”–a remarkable woman from whom all of us can learn how to bring up children.

One of our societal phenomenon’s are single women choose for various reasons to be or become single moms. I am honored to be a Godfather to a boy whose mother, a personal friend, divorced her husband who did not want to have children, and gave birth to a beautiful son, who is about to go to college.

In the mortgage business, the problem arises when a single parent does not have enough income to qualify for a new loan. Another friend of mine, a single mom, who owns a two-unit building, and who incidentally, invited me to her son’s bris, the Jewish tradition of circumcising a boy on his 8^th day of life. She lives in one unit and rents the other. The rent almost covers her mortgage payments and property taxes. Nevertheless, she is not qualified to get a new mortgage, which could reduce her payments about $200/month.

In my work, I have helped quite a few people who are going through a divorce, which diminishes two qualifying incomes to one. There are many challenges that require creative solutions. With one client, a woman whose divorce procedure was going to be complete in six months, I suggested that she use her own money now to buy a condo with cash. In a few months after the divorce, when we could establish and show proof of the alimony, I would get her a cash out mortgage.

In another instance, a man wanted to keep the house but had to give his ex-wife money as part of the settlement. We refinanced his home and got a separate line of credit, which had to close after the first loan is in place, to satisfy her demands.

Yet in another one, a divorced woman, who wanted to keep her house until her children were grown, but was not qualified on her own. We found a solution by having a friend offer to co-sign for her mortgage. The problem was that he had not filed his taxes since 2009. We have to wait until he brought his affairs into order.

Co-signing, which I describe in detail in my forth-coming book “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved,” can help in certain situations, but not always.

Since Mother Earth is so generous with us by giving us so many flowers, why limit Mother’s Day to one day a year?

P.S.

As you can see from my images from Cuba, there is nothing more powerful in the world as the love of a mother.

P.P.S

I will start teaching a course “How to Play The Mortgage Game and Win” on Sunday, June 2^nd. If you know someone who wants to get into the exciting mortgage world, please let me know.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Best Wishes,