Paper Money - Paper Tales

Poor Rich Uncle...

2007-01-04T09:24:00.000-05:00

Here's an account of a nephew who is advised to turn down an inherited Miami condo! Seems his rich uncle left him with more than just a ritzy pad... He got mounds of debt too! The story from the Star News of North Carolina.

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Dear Mr. Berko: I stand to inherit from my uncle who had a condominium in Miami and passed on recently. The mortgage is a little higher than the property value, so if I sold the condominium I'd be in the hole. But my wife and I might consider moving to Miami because of the weather and because the condo is so beautiful and all the folks on the phone seem so nice. Please give me your advice.

B.S.

Jonesboro, Ark.

Dear B.S.: There's a mushrooming inventory of real estate in Miami with mortgage balances that exceed the underlying property values. And there's also a slowly growing inventory of Miami real estate with mortgage balances that exceed property values by 25 percent to 45 percent. Fortunately, the mortgage on the condo you may inherit only exceeds the market value by some $25,000, or 6 percent. I think it's going to get worse.

Because you can't sell that condo and come out ahead, I suggest you tell the attorney that you wish to decline the honor of your uncle's good intentions. You are not obligated to accept the bequest. Even if the bank makes you an offer to reduce the balance of the mortgage to "assessed value," I would advise you to decline. And the bank may well do just that because the foreclosure rate in this development may go into orbit.

A lot of Florida banks holding construction loans are bleeding bullets, yet the builders keep building. Go figure!

And no, a thousand times no, do not move to Miami.

Some Wishfull Thinking!

2006-12-23T23:06:00.000-05:00

Here's a PRNewswire press release by a real estate marketing and design firm that is using t-shirts to point the finger at the media for "over blowing" the housing bubble.

The rest of the shirts can be seen here.

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JACKSONVILLE, Fla., Dec. 19 /PRNewswire/ -- The media whipping post at the moment, "the housing bubble", has been the subject of intense speculation, adulation and consternation. Renaissance Creative, a Jacksonville, Fla.-based real estate brand development, marketing and public relations firm has decided it's all a bit, "overblown".

"The housing market correction has been an unfortunate reality, but everyone knows the market will eventually return to normal," said Renaissance Creative President Tim Hamby.

The award winning firm that provides advertising, marketing and public relations for residential, commercial and resort real estate clients across the country has created a series of housing bubble themed t-shirts to help get this message out, while also allowing industry professionals to express their frustration at the intense and often negative media scrutiny associated with the correction.

Proceeds from t-shirt sales are going to Habitat for Humanity and Home Builders Care.

"Created in fun, the serious undertone is that the media has played some role in undermining consumer confidence in the housing industry," Hamby said of the tees.

One design, "The Attack of the Housing Bubble", spoofs the panic initiated by media reports of the demise of the American Dream - homeownership - with a vintage 1950s B-horror movie poster knockoff.

Another shirt that would make Bazooka Joe proud, challenges the media hype surrounding the bubble, calling it "Overblown."

A third design shrugs off the negative effects of the housing bubble and media saturation all together. "The Housing Bubble Did Me Right" portrays a man and a woman drinking martinis under a shower of dollar signs. The shirt celebrates what the housing industry has meant to the national, state and local economy by providing jobs and income, resulting in taxes and fees that benefit everyone.

Hamby says the t-shirts were originally developed for clients and friends, but that they struck such an industry chord, the company decided to market them for a cause.

"Everyone in the housing industry- realtors, builders, developers, mortgage people- they really get a kick out of them. They make a great gift and bring some perspective to the current market fundamentals."

housing+bubble housing bubble real+estate realtor economy recession david+lereah NAR greenspan bernanke

Up a Creek!

2006-12-21T16:16:00.000-05:00

Here is a sad but increasingly more common case from the latest Washington Post's "Real Estate Live" with Maryann Haggerty.

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Up-a-Creek, Md.: We bought our house a year and a half ago, and took out a home equity loan to pay of some bills about six months after we bought. Prices in the area had gone up so much in the six months that we had no problem getting the home equity loan. Now, though, my husband has been transferred to Ohio. We've had our house on the market for more than nine months now, and have reduced the price three times and it still hasn't sold. We've had several offers at a lower price, but the price we have it listed at right now is the bare minimum we can sell it for and be able to pay off the mortgage and home equity loan. Our lender won't let us sell unless we can pay everything off, and we don't have any spare money. We thought about renting, but we live in a small town and there is no rental demand at all. Do you have any suggestions of what we can do? There must be other people in this situation, now that the market is softening.

Maryann Haggerty: I'm very sorry. This is, indeed, the worst-case scenario for many people. In the early '90s, when the market was soft, it was not uncommon for people in your situation to have to write a check at the settlement table when they sold. So, first, try to rent it if you can. If you must sell, you may have to take a loss. Sometimes it is possible to turn the house back to the bank in lieu of foreclosure and work out a payment plan.

What you DON'T want to do: Get yourself into any complex "rescue" plan with a third party that in some way involves you taking out MORE loans.

housing+bubble housing bubble real+estate realtor economy economics recession bernanke greenspan Real+Estate+Live Washington+Post Maryann+Haggerty

Texas Homebuying Incentive: FREE GUNS!

2006-12-15T09:27:00.000-05:00

The Houston Chronicle reports on a Texas real estate agent offering free GUNS to buyers who purchase homes of $150,000 or more!

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Pearland-area real estate agent Julie Upton has decided to throw down on the competition.

Like any good salesperson, Upton is always looking for new ways to attract customers. Recently, she struck upon what she thinks is some tantalizing bait — at least when it comes to police officers.

Instead of a free toaster, TV or a stay at a luxury hotel, Upton, of Realty Associates, is offering officers a free Glock pistol with any home purchase of at least $150,000.

"It's attracted a lot of attention," she said of her ads in Badge & Gun, the monthly publication of the Houston Police Officers' Union. She said she came up with the idea with help from Blue Cat Creative Consulting and Design.

Upton has given away two Glocks. "So (the ad) has already paid for itself," she said. But not all of her law enforcement customers have been interested in another gun.

"So I just give a $500 American Express gift check," said Upton, whose husband, officer Randy Upton, is a 15-year Houston police veteran.

For police officers, Glocks range from about $450 to $550 on the company's Web site.

Franceska Perot, spokeswoman for the federal Bureau of Alcohol, Tobacco and Firearms, said the giveaway appears to comply with federal and local laws.

"Proper record-keeping in gun transactions is always important," she cautions. "We don't want them falling into the wrong hands."

housing+bubble housing bubble realtor Texas gun incentive real+estate agent mortgage economy recession interest+rates toxic+loan

Real Estate Agents are "Dumb and Lazy"

2006-12-03T20:22:00.000-05:00

Here's a press release from WebWire showing some infighting in the real estate crowed. According to this real estate agent, the housing slowdown will separate the intelligent from the "dumb and lazy".

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The home selling slump separates real estate agents in two categories: the intelligent and trained or the dumb and lazy. In the old days, this might be called separating the "men from the boys." While tens of thousands of people throughout America whine about the real estate prices taking a dive, the smart agents are still very busy because they know top-notch, professional marketing and they know human behavior.

A professional marketer wouldn’t sell a house by simply placing picture ads and waiting for the phone to ring. The pro knows you need to find a niche of motivated home buyers. Analyze the demographics and psychographics. Match the results to your present inventory on the MLS. And approach the niche directly by appealing to their specific desires.

Furthermore, the smart agent knows people buy based on emotions. The trained agent can separate the sellers emotions while tapping into the buyers emotions. Then matching the motivated, niche home buyer’s emotions and house. This is what sells homes in any market. Not aimlessly advertising to the masses.

"I provide four niches most agents overlook. They’re a goldmine," says author David Anthony.

The details are available in a new Special Report entitled "Buyers Market Made Easier." The author has a Bachelor’s degree in Real Estate, was a licensed real estate agent and has 12 years experience as a mortgage broker. You can download the PDF document for $12.97 at http://infoHero.com.

housing+bubble realtor real+estate agent real+estate+agent NAR housing house economy housing+bust dumb lazy recession Greenspan Bernanke home+sales slowdown

Home Listing Details: "Grubby, Cramped and Dirty!"

2006-11-27T13:56:00.000-05:00

Things must be getting seriously out of whack in the formerly hot UK housing bubble, so much so that it's driven this real estate agent to dropping all niceties and calling a spade a spade... although, with some really odd wordplay. Read the following article from UPI:

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GLASTONBURY, England, Nov. 25 (UPI) -- A British real estate agent, in a new twist, is describing homes for sale in newspaper ads as "grubby, cramped and dirty," or "suitable for a midget."

Julian Bending of Somerset told The Independent he was fed up with accolades heaped upon properties that were undeserved at best and downright misleading at worst.

He decided to take a blunt approach to selling houses. In one ad, the details read, "Dear God, it's difficult to imagine a more disgusting house than this."

Bending told the Telegraph that he has found a following among people who are impressed with his stark honesty.

"If you get called up by an estate agent and they tell you somewhere is lovely and perfect for you and it's not, they have no trust in you," he said. "People thank us and say it's exactly how you said, thanks for not wasting our time, while sellers are also grateful they don't have to bother with people who aren't interested."

housing+bubble bubble real+estate realtor national+association+of+realtors economy grubby filthy home housing house midget disgusting real+estate+agent agent

Shisty Mortgage Broker Cheats "Captain Dumbass"!

2006-11-24T18:57:00.000-05:00

Here's a tale from Denver Post proving that even "Captain Dumbass" is not immune from mortgage fraud.

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Barbara Mattern called Altus Real Estate as soon as she heard the radio ad touting no mortgage payments for a year.

The "Freedom Loan" sounded too good to be true. For Mattern, who later lost her Morrison home to foreclosure, it was.

Mattern didn't qualify for the offer, so she took a loan with a low interest rate and monthly payments to refinance her home. Months later, she realized that the monthly payment to cover principal and interest was three times what she had expected.

"I wish I had never signed those loan papers," she said.

She's not the only one.

The Denver/Boulder Better Business Bureau has received 20 complaints about Altus during the past three years, more than any other mortgage company in Colorado. Five involve allegations that Altus brokers lied or misled them about loan terms.

Altus owner Ferren Rajput said in a statement that 15 of the complaints have been resolved. He added that the BBB complaints are a tiny fraction of the loans Altus handled in the past three years.

All loan terms are disclosed to customers prior to closing, Rajput said.

"The vast majority of Altus customers have been very satisfied," he said.

Rajput, 42, pleaded guilty last month to failure to pay $1.1 million in employment taxes from Altus Financial Inc., a predecessor to Altus Real Estate that went bankrupt in 2004. A judge told him jail time is likely.

Mortgage brokers play a key role in the American dream of homeownership. They connect borrowers with banks in more than two-thirds of mortgage transactions.

They can earn thousands of dollars more on some loans than on others. Lenders, for example, pay brokers based on a loan's profit margin.

Yet, deceptive practices by some brokers are helping to push homeowners into foreclosure, experts say.

"It's a serious problem. People are getting into loans they can't afford," said Colorado Attorney General John Suthers. "That puts them at a higher risk of foreclosure."

The state's foreclosure rate has led the nation for eight consecutive months, according to RealtyTrac, a California company that tracks foreclosures. One of every 327 Colorado homes is in the foreclosure process.

Some brokers take advantage of consumers with misleading advertising and sales tactics, luring them into expensive loans.

A typical pitch involves describing a loan with a rock-bottom interest rate as "fixed" or with a "fixed payment." But rather than a 30-year fixed-interest loan, it's an adjustable-rate mortgage with a one-month introductory rate and a minimum-payment option that builds up debt that can crush a homeowner.

It's buyer beware. Borrowers who fail to carefully read and understand their loan documents before signing have little legal recourse.

"The payment shock that comes with many of these option-ARMs ... is already leading to high foreclosures, and that rate is only going to go up," said Debbie Goldstein, executive vice president of the Center for Responsible Lending in Durham, N.C.

Registration soon mandatory

Colorado will soon take its first step toward regulating mortgage brokers. They must register through the state Division of Real Estate and pass criminal background checks as of Jan. 1. More than 1,100 brokers have either been approved or are awaiting a background
Mortgage Problems?
Have you obtained a mortgage, through a broker, that subjected you to higher payments than you expected when you signed the papers? Has that forced you into foreclosure or put you at immediate risk of foreclosure? If so, please contact Greg Griffin at The Denver Post, 303-954-1241 or ggriffin@denverpost.com.
check.

Brokers with convictions for crimes involving fraud, theft or deceit in the past five years will be barred from the business, as will those who have lost licenses in other states for those reasons.

The new law doesn't go far enough, some say. Unlike real-estate brokers and appraisers, mortgage brokers still won't need to be licensed. That means the state will not require training and cannot investigate and discipline rogue brokers.

Arizona, North Carolina and Oregon are states that require education, three years of experience and an exam before licensing. Prior to its new law, Colorado was one of just two states - Alaska is the other - that didn't regulate mortgage brokers at all.

Critics will be pushing for licensing legislation at the statehouse next year.

"You should have to take a test," said Chris Streiff, director of the Denver- based Society of Mortgage, Appraisal, Real Estate and Title Professionals. "You've got somebody's largest financial investment in your hands. You ought to know what you're doing."

The big opponent of licensing is the Colorado Mortgage Lenders Association, which says additional regulation will hurt the industry and drive up consumers' costs. The group advocates more enforcement.

But despite a rising number of complaints, there's been little enforcement of existing laws that protect consumers from unscrupulous brokers in Colorado.

Suthers' office has yet to prosecute such a case. The office recently began investigating a handful of mortgage companies for deceptive marketing. Suthers would not say if Altus is among them.

Altus has never been charged with deceptive advertising or illegal sales tactics.

However, some of its brokers have run afoul of the law, either before or after working at Altus companies.

Thomas and Janel Skinner, who worked for Altus Financial from 2001 to 2003, went to jail last year after pleading guilty to falsifying documents and defrauding lenders in 2000 and 2001, pocketing $274,800. The activities occurred before they worked for Altus.

A federal grand jury indicted former Altus Financial broker Torrence James in August in an alleged $2.1 million fraud ring. James has pleaded not guilty. The alleged mortgage fraud occurred after he left Altus.

It's unclear what effect Colorado's new mortgage-broker law will have on Altus' operations.

Mortgage companies are not regulated, just brokers. Though his tax charge could disqualify him from brokering loans, state officials said, it would not keep Rajput from owning a mortgage brokerage.

If any current Altus brokers have fraud convictions, they would be barred from originating loans under the new law.

"To the best of Altus' knowledge, no mortgage brokers affiliated with Altus have any felony criminal record," wrote Sean Paris, an attorney for Rajput, in an e-mail in response to The Denver Post.

Talked into a different loan

Mitch Hyder cringes as he looks through the loan-refinancing documents he signed in December 2005.

There, on one document, is the 7.46 percent interest rate. Another document spells out details of his option ARM, an adjustable-rate mortgage with a variety of payment options.

His mortgage brokerage: Altus Real Estate. Hyder called Altus after hearing a radio spot offering no payments for 12 months. His wife, Reva, had quit work after they adopted a daughter, and they needed help adjusting to one income.

Hyder said the broker quickly talked him into a different loan, with a 2.9 percent interest rate for five years. The broker never told him it was an option ARM or that the low numbers were for a payment that would cause his loan debt to grow up to 125 percent of the original balance, Hyder said.

He admits he didn't read the closing documents carefully, relying instead on what the broker told him.

"I now call myself Capt. Dumbass," said Hyder, 43, a radio sports announcer who calls games for the University of Denver Pioneers basketball team.

Hyder's $244,000 loan and an accompanying $48,800 equity line of credit were through lender Washington Mutual. Altus collected $11,100 in fees, $7,800 from Washington Mutual and $3,300 from Hyder.

"We're making the minimum payment and losing all the equity in our home," Hyder said. "It's going to be a very expensive lesson."

The Hyders are trying to determine what's next. They hope Reva doesn't have to take a job, but they don't want to sell the house at a loss or, worse, lose it to foreclosure.

Barbara Mattern's experience was similar. The former Morrison resident said she was told by an Altus broker that the monthly payment on her $556,0000 loan would be less than $1,000. But when her first mortgage-payment stub arrived in mid-2005, the principal-and-interest payment was about $3,000, she said.

Mattern, 58, walked away from the home she loved. The loan was just one factor in her foreclosure. Others included a divorce, loss of her business, bankruptcy and the purchase and loss of yet another house - in Lakewood.

Now she's living with a relative in Nebraska, and her belongings are in storage. "I don't know what I'm going to do," she said. "I'm just kind of lost right now."

In a written statement, Rajput said this about the Mattern and Hyder cases:

"In both of these instances, full disclosure was made both verbally, and in writing, through the closing documents. Further, each also had three days after closing, ... in which time they could cancel their transaction without penalty. In each of these cases, the customer expressed a need to increase monthly cash flow. In each case that objective was met."

More disclosure on risky ARMs

Deceptive lending practices have been gaining the attention of regulators and lawmakers nationwide.

Federal regulators recently issued stricter guidelines directing banks to disclose more to customers about risky adjustable-rate loans. Banks were instructed to use the highest possible interest rate to qualify borrowers.

The Federal Trade Commission has sued 21 mortgage companies in recent years for unfair practices. An affiliate of Citigroup Inc. paid $215 million in 2002 to settle claims in the largest case.

Last year, the FTC secured a $128,300 judgment against Colorado Springs mortgage broker Phillip Ranney for advertising no-cost, low-interest loans that weren't delivered.

Altus owner Rajput said his company's ads - which have run prominently in The Denver Post and Rocky Mountain News business sections and on radio stations - comply with the federal Truth in Lending Act.

The company's ads catch the eye with offers such as 12 months without payments, no closing costs, or both. A recent Altus print ad touted a 4.6 percent rate on a 40-year fixed mortgage. In fine print, Altus discloses it is an "equivalent bi-weekly rate," which accelerates the borrower's repayment of the loan.

Another Altus newspaper ad quotes a $685 monthly payment on a $350,000 loan. It's unclear what kind of loan it is or what interest rate it carries.

Altus isn't the only Denver-area mortgage company running such advertising. Many brokers advertise interest rates as low as 1 percent for five years. Typically those are one-month rates on loans that could put borrowers deeper in debt later on.

Altus spent a quarter of its revenue on marketing in 2004, according to documents from Rajput's bankruptcy. Rajput has said Altus' sales will be about $4 million this year.

The ads work. The phones in Altus' office in the Inverness business park in Douglas County ring constantly, according to former brokers.

"The sole purpose of these ads is to get people to pick up the phone and call," said Bill McClearn Jr., who worked for Altus Financial in 2003.

McClearn said he wasn't pressured by Rajput or Altus managers to put people in loans they couldn't afford.

The temptation to do so is there for any broker. Loans with higher rates or prepayment penalties can boost the lender-paid broker commission by one to three percentage points, or up to $9,000 on a $300,000 loan.

A former Altus broker said Altus tried to put customers into high-commission loans. "I was asked by a manager 'Why aren't you selling the option-ARM?"' said the former broker, who asked not to be named.

Rajput said brokers using "shady tactics" will be fired. In a September interview, he said that fewer than one third of Altus' loans are option-ARMs.

"When offering an option ARM mortgage ... it is Altus' company policy that the loan officer discusses all the pros and cons. ... We understand that this loan is not appropriate for all customers," he said. Altus brokers "present other mortgage programs so the customer can make an intelligent decision."

In all cases, Rajput added, customers sign legally binding documents explaining their loans.

That pinpoints a challenge for law enforcement. The 18th Judicial District Attorney's office has received at least 18 complaints about Altus.

Those customers "all signed the closing documents," said Mason Finks, the district's director of fraud prevention. "That's a hard thing to overcome."

housing+bubble housing real+estate mortgage mortgage+broker broker captain+dumbass dumbass realtor interest+rates ARM+loan option option+ARM fixed+loan variable+rate

"Molly"... an Incentive?

2006-11-21T12:58:00.000-05:00

Apparently, home sellers are beginning to completely lose their marbles down in Florida. It seems that one seller is even offering their dog Molly as an incentive to the buyer of their $2.9 million single family!!

Read this article from First Coast News 25:

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JACKSONVILLE, FL -- It's a buyer's market and sellers are offering creative incentives to reel potential homeowners in.

Take a ride through almost any neighborhood in Jacksonville and you'll see "For Sale" signs on plenty of streets.

"Sellers are now becoming a little more creative, so they're trying to lure buyers in," said local realtor Anita Vining.

One home in Neptune Beach is going for $2.8 million. The seller is throwing in a $200,000 boat if the asking price is paid. Another house in San Marco valued at $300,000 is offering a brand new Hyundai to whoever pays their asking price.

Incentives are the name of the buying game and one of the most interesting out there right now is "Molly" the dog, going for $2.9 million. The owner's four bedroom, four bath house on the river comes with "Molly."

"You'll see some sellers paying closing costs. Other sellers are offering to pay points on their mortgage to buy their rates down," said Vining.

Real estate experts on the First Coast believe buyers are in the driver's seat. "There's a lot of inventory on the market to sell. The buyer can pick and choose their product. Buyers are more in control than they were before," according to Northeast Florida real estate expert Raymond Rodriguez.

Motivated home sellers are even enlisting the help of home auction companies to help them move their products. "They come to us and they want to get rid of it quickly," said Vita Paltridge, a realtor with Good Earth Realty and Auction Company in Palatka.

If you do decide to buy a home from someone offering a creative incentive, real estate experts warn that you get everything in writing to avoid problems later on.

housing+bubble realtor real+estate buyer seller home+owner home+seller incentive molly dog bubble decline

Bet Your Bottom Dollar!

2006-11-17T14:51:00.000-05:00

Here's an interesting Newswire release promoting a real estate agent that's taking a "new" approach to home sales. It seems the agent is attempting to create a buzz by listing a Highland Park IL home for 1$!! Check out the listing at Realtor.com.

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NewswireToday - /newswire/ - Deerfield, IL, United States, 11/16/2006 - The 2.1 bath, three bedroom house is listed in the MLS for $1. Is this a joke? Is this a mistake? $1 listing attracts the eye of not only potential buyers, but other real estate agents.

8:30 A.M. Evan Kane from Endeavor Realty listed a two story three bedroom home for sale in the MLS at a listing price of $1.00.

It is not often that you see a house in the affluent Chicago suburb of Highland Park listed for sale at $1, but that is what Evan Kane the Broker/Owner of Endeavor Realty has done to help his clients sell their home in an increasingly tough real estate market.

Most Real Estate Brokers do not think to use the science of social psychology to help sellers. The real estate market has become increasingly tough causing brokers and real estate agents to have to think of other ways to attract buyers. Endeavor Realty has come up with a different strategy to serve the best interest of its clients.

Citing a recent study by Gillian Ku of the London Business School, Adam D. Galinsky, and J. Keith Murnighan of Northwestern University Kane says, "although this is not an auction, the principles are very similar and the evidence is clear that starting low can lead to more traffic and a higher sale price."

Not only is approaching a slow market with creative ideas and new strategies increasing traffic and sales for the clients of Endeavor Realty, but it is also attracting other traditional real estate agents that have not thought of going beyond their guiding principles to try something different.

Deciding to implement this strategy has caused a few adverse reactions. "They don't like it. I am using the system in a way they didn't contemplate" says Kane of the reaction of more traditional agents. "I have to deal with a few angry phone calls, but it's in the best interest of my client, so I do it."

For additional information on the news that is the subject of this release, contact Evan Kane or Janessa Gonzalez.

About Endeavor Realty

It is the mission of Endeavor Realty to be the catalyst of change that brings transparency, efficiency, and honesty to the residential real estate industry.

You can't choose your neighbors!

2006-11-16T00:04:00.000-05:00

Here's one from the Star Beacon, a local paper in Ohio. Check out the the part where Vicki Miller of Miller Realty suggests that a home seller might want to buy the filthy neighbors property and clean it up to enhance their own sale!!

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The old saying "You can't choose your neighbors" rings true when homeowners are trying to sell their home and a neighbor's unsightly property inhibits the sale.

The problem is not uncommon and could be costly to the homeowner, but are there solutions to the problem? The answer is: Yes. However, they vary depending on the community in question.

Zac Shadduck, of Saybrook Township, has been trying to sell his North Bend Road home for some time. He has been unsuccessful due to the mess on his neighbor's property, he said.

"My Realtor told me people call to see the house, but they drive by and see the neighbor's house and cancel their appointment," Shadduck said. "I just want to sell my house."

The modular home that sits on the acre of land next to Shadduck's, has no siding on the sides of it. There are several animals on the property including four dogs and several cats, he said.

"There are at least 12 cats that run loose all the time," Shadduck said. "They're in my mud room, eating my cat food. I'm chasing cats out of my house every day."

Aside from the animals, he said there is trash all over the property. Shadduck said he has gone to the township trustees and spoken with the zoning inspector, but the issue has not been resolved.

Gary Timonere, Saybrook Township zoning inspector, said he has been to the property and spoken with the owners and the property has been cleaned up enough to meet the township's standards. The county health department was also called to visit the property and Timonere said they did not find any violations.

"The owner took care of it as best she could," he said. "Mr. Shadduck has a good complaint. He's trying to sell his house. I wish we could pick our neighbors."

As far as the animals are concerned, Timonere said there is no limit to the number of cats a township resident is permitted to have, but there is a limit to the number of dogs. Township residents are permitted to have three adult dogs, anymore than that requires a kennel's license, he said.

The township will be checking the property every couple of weeks to ensure it still meets the zoning specifications, but at this point, the township has done all it can do, Timonere said.

Cities and villages operate a little differently than townships do. Rock Creek Village has been working diligently over the past several months to get various properties cleaned up. Village officials recently restructured and passed new zoning regulations. If the zoning inspector finds someone is not in compliance with the new regulations, a letter is issued to the individual, said Mayor Bob Schultz.

The individual is given a specific time frame to comply and if that time frame is not met, the mayor issues a citation. After the citation is issued, the village solicitor files suit in Western County Court, he said.

"For the most part people comply," Schultz said. "We're making quite a bit of progress."

A lot of Rock Creek's success comes down to peer pressure, Schultz said.

"If they see someone else cleaning up, they tend to want to do the same," he said.

Violations to Rock Creek's regulations include overgrown weeds and grass and exterior maintenance issues such as paint, he said. If weeds and grass grow over a certain height, the resident is ordered to mow it. If it is not mowed, village officials mow it for them at a cost of $50 per hour, which in turn is added to the individual's property taxes, Schultz said.

Ashtabula city has similar regulations. Residents who have old tires, broken furniture, wood, trash bags, etc., are warned to clean up their property. The residents who refuse to comply will pay the city to remove the trash. The weight, number of loads and man hours is all calculated into the amount a resident is charged, Ashtabula Sanitation Supervisor Dom Iarocci said in a Star Beacon article published April 15.

Vicki Miller of Miller Realty in Jefferson said the best thing to do in these situations is to work with the neighbors. She said the first thing a homeowner can try to do is buy the property and clean it up themselves, but that will cost the homeowner money and the neighbor has to be willing to sell.

"You always have neighborly disputes," she said.

Homeowners living in an area where something can be done should take advantage of it, she said. A neighbor's unkept property can have a significant impact on a person's property value.

"It could almost make the home unsaleable," Miller said.

Cordie Stevenson, of Price Real Estate in Andover, said Realtors can show the property, but there is nothing they can do about the neighborhood. It is the seller's responsibility to do what they can to have the situation rectified.

"We can advise the homeowner of what they can do to their home to make it more marketable," she said.

Stevenson said Realtors cannot give their opinions on a neighborhood to a potential buyer. It's called steering.

"We give out information sheets and they drive by and determine whether they want to see inside," she said. "Sometimes (the neighborhood) doesn't matter, sometimes it does. Neighborhoods are what they are."

When it comes to real estate, location is everything, Miller said.

"You look to the left and look to the right, if you don't like what you see, you leave," she said. "If (neighbors) don't care enough to take care of their property for themselves, they're not going to take care of it for you."

Media... Just Shut the **** Up!

2006-11-07T22:51:00.000-05:00

Another beauty from HDTV’s Buying and Selling Homes Forum. Apparently the housing collapse is all the media's fault!

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Ya know I wish the media would just shut the **** up about home sales already. It's stressful enough in today's market trying to sell yet everynite on the news they have to announce HOME SALES ARE DROPPING! MAKES ME WANNA PUKE!

Response 1:

You have to take selling your home in your own hands now. The realtors are not bringing the buyers in! Put your home on Craigslist!
My house is sold thanks to myself and Craigslist.
The media loves to just flap their lips about negative stuff.
Believe me, you can sell your home at a good price. I did.

There's no place like home...

Response 2:

I agree whole heartedly. All the media wants to report is gloom and doom. They can even make things look bad that aren't bad. One realtor we spoke with, (friend) told us not to pay attention to the media. She said she is still selling homes every week.

Response 3:

Yeah, I know that it is real estate gloom and doom all day long in the media. Unfortunately, the market in my area agrees with alot of what they are saying. I've lost at least $50,000 in equity in my house in the past year, based on what houses are selling for now compared to last year at this time.

Response 4:

Yes, it is certainly getting harder and harder to stay positive when there is all this negativity around you re: home sales. I was thinking the same thing you were re: the media and it's apparent blitz on the state of the housing market.

We too didn't buy during a boom - atleast I don't think we did. We weren't following the news of the economic state at that time. All we knew is we found a found we liked in a magazine. John just went to the grocery store. We hadn't even thought or talked about buying at that time. He just grabbed the mag like he always did. We had just finished renovating our apartment - complete gut job. It was in my BIL's 2 family house.

Misery loves company I guess. There are a boatload of us out here trying to sell our homes.

Response 5:

I agree with you....seems like every other day there is a rather depressing article on the FRONT page no less...about how bad the Real Estate market is....

I See Dead Buyers!

2006-10-31T11:08:00.000-05:00

Here’s a funny request for advice from a home builder to from BusinessWeek’s “Lonely at the Top” editor.

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Dear Lonely at the Top,

I'm a homebuilder, and I think I'm going insane. I walk past my unsold houses at night and I swear there are ghosts. I hear voices, babies crying, couples arguing. And even though it's almost Halloween, I know they aren't the Undead. They're the Undecided. The people who make my life miserable day after day by not making up their minds. Their ghosts are living in my latest subdivision, Les Banlieues. How can I get some peace?

Cracking Up

Dear Cracking,

You seriously need to take a break. Have you considered a less stressful line of work, such as catching rabid dogs?

Escaping your living nightmare won't be easy. This past week it was announced that median new-home prices fell almost 10% over the past year, the worst decline since 1970 (that's right: the year Jimi Hendrix died). Nothing like the fear of overpaying to keep people on the fence.

You're already doing some things right. Naming your latest subdivision Les Banlieues gives it a nice Gallic flavor, never mind that the poor banlieues surrounding Paris are being torched as we speak by angry youths. Also, I see from materials you enclosed in your tear-stained letter that you're also building condos in Miami. That's a good bet. At this rate, you ought to be able to unload them in, oh, 25 years.

But there's more you can do to get out of your predicament. These days all the big builders are throwing in freebies—granite countertops, plasma TVs, swimming pools. You've got to go your rivals one better.

Offer to come to the house at 6 a.m. with a pooper scooper and walk the dogs. Promise to help the kids with algebra. Say you'll get on your knees and polish Dad's shoes every day before he walks out the door. Swallow your pride.

If that doesn't work, I have one word for you: China. The Chinese are going crazy for luxury housing subdivisions such as Chateau Regalia in Beijing. Here's what you should do: Dismantle your houses (the way they're being made these days, that should take about 15 minutes), pack them into containers, and ship them to Shanghai on a cargo ship that's going back empty. Finally—a U.S. export the Chinese really want!

I hope my advice has been useful, Cracking. Write back and let me know how it's going. Meanwhile, Happy Halloween!

Religion, Superstition or Just Plain PANIC!!

2006-10-28T17:00:00.000-05:00

Is it me, or is there something unseemly about the idea bashing a statue of Jesus’ adopted earthly father into the hard soil with a hammer on the hopes that it’ll help move your home?

Read this comical, yet somewhat sad excerpt from HDTV’s Buying and Selling Homes Forum.

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Have you heard about burying a small statue of St Joseph upside down in the front yard to sell your house? Well I did it with the house before this and it did sell and I currently buried a St Joseph with this house. I do say my prayer to St.Joseph everyday. Sounds crazy but a few people I have spoken to have sold their houses in less than 2 weeks and they swear by St Joseph. I know it sounds crazy but I figured anything that works in selling a house is fair game!( you can purchase a small statue of St Joseph at your local Catholic gift shop they only run like a buck unless you get the "St Joseph house selling kit)

Response 1:

Yes I have heared of it and it worked. House was up for sale could't sell it we buried the statue and it sold! We dug up the statue and still have it. It was worth it.

Response 2:

He's been buried in my yard since July.

Response 3:

It worked for us.

Response 4:

We did not burry anything but we sure did pray a lot.

Response 5:

It worked for us too! He is still outside buried upside down until we close! I also have one in the window. I say the prayer everyday too.

There's no place like home...

Response 6:

I have bought several for friends, who have their homes on the market. The St. Joseph Statue kits sell for under $4.00 on E-Bay and do make a great gift to someone selling a home. Maybe all real estate agents should keep cases of them!!

Understand once your house is sold, you are to bring the St. Joseph statue into your home, and place it in a prominent place, like on the mantle.

Response 7:

I think he helped us! We sold in 6 days and I swear St. Joe had a hand in it! Although, (we were told), burry him upside down, 3 feet from the foundation in our backyard, facing away from the house. We also dug him up after closing and now he stands in our new home.
We got him on Ebay.

Response 8:

I did it six months ago...had to use a hammer to get him into the hard dry adobe soil we have...think I killed him because we are STILL on the market.

Response 9:

I just ordered one on ebaY :P

Competing To The Bottom!

2006-10-28T09:16:00.000-05:00

Here’s another “sign of the times” post from GardenWeb’s Buying and Selling Homes Forum. Look at the numbers; Agent says $325,000, they list $319,000, reduce to $299,900, offer at $285,000 - $2000 cash back, still the deal goes south!!

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We have been in our house for three years, and the builder is still building in our neighborhood. We have been on the market for 90 days, average DOM is about 140 for the neighborhood. When we listed, the price that several realtors came up with after doing a CMA was $325,000. We listed at $319,900 in the hopes of distinguishing our house from the other re-sales currently for sale. Other sellers started dropping their prices in our neighborhood shortly after we listed, and we are now at $299,900, which is the lowest priced re-sale of our model in the neighborhood and lower than the builder's current base price for our model (we also have many upgrades).

The lower price has generated many more showings, and we got an offer over the holiday weekend. The buyers seemed to be extremely concerned about a quick close (less than 4 weeks), so much so that they made sure that we would be willing to close that fast before they would actually make an offer.

Their offer was $285,000, and they wanted $2000 back for closing costs. They were also planning on 100% financing. We countered at $299,900 with $2000 back to them at closing. We would have come down on the price a little bit for the counter offer, but the closing costs seemed important to them since they were doing 100% financing. We also expected them to counter that, and were willing to come down a little bit, but not more than a few thousand, especially because their closing date would require us to pay for storage and temporary housing.

Well, they refused to respond to our counter offer, so our realtor told us to give them our "best price offer". We told them $294,000, with $2000 back for closing costs, take it or leave it. Last we heard (two days ago), they were still considering our house, but were leaning towards buying our model new from the builder, which they had priced out at $320,000.

What??? First, they needed a fast close and 100% financing, now they can spend almost $30,000 more, wait 6 months for a new home, and have the $15,000 deposit that the builder requires? I don't get it. Since we haven't heard back from them, I'm assuming they decided not to buy our house, and I'm beginning to wonder if we can possibly compete with the builder.

How Rude! Buyers Strutting Thier Stuff Like Peacocks!

2006-10-23T20:17:00.000-05:00

Here's a fine example of seller outrage! In this excerpt taken from GardenWeb's Buying and Selling Homes Forum, a seller is having a really hard time coping with the new realities of the housing market.

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I'm in the NE & all the "Winter" States understand that selling at this time of the year in the NE is not a good idea & the closer we get to November & the Holidays the worse it is to sell a home.
My first sale in August ( I sold it on the first day) fell through. I put the house house on the market for the second time at the end of September. It's been a struggle since then. Although my house is priced right & in great shape, the buyers are non-existent in my price range. The starter homes are still selling, but homes over $500,000 are sitting.

Anyway, my point is that out of the four-five legitimate showings in 3 weeks, I may have a possible "bite".

However, I am furious how the prospective buyers & their realtors are acting. Now that it has become the buyers market, they have gotten totally rude & disrespectful to the seller. They expect the seller to jump hoops.
I get a call from a realtor that "these people" who have seen my house twice (spent 1/2 hour the first time & 1 whole hour the second time) are strongly considering my house....now listen to the rest of the conversation-

The realtor: "They love your house. Of course, you understand that they have other options...and they want to (DON'T HAVE TO)get their house READY & sell it so they don't have to carry 2 mortgages..."

OMG, I bit my tongue! I didn't say much other than..."well, we cannot wait either...whatever"

What kind of buyers are those? Buyers from hell?
The realtor doesn't care which house she sells them (mine or another option). She is manipulating them so she gets their 2 commissions.

I am so sick of buyers being treated like gold and the realtors are trying to take total advantage of the sellers. This realtor is obviously giving me a warning that the buyers are in the drivers seat (I would have to reduce the price & give them terms), by telling me that they have other options to look at. They want to sell their home...blah, blah, blah.

Buyers sre walking around, strutting their stuff like peacocks. I got news for these buyers, I am NOT considering them as buyers because the time it would take to get this deal done would bring us to Spring. It would be easier for me to take the house off the market for the Holidays & re-introduce it afterwards, rather than dance "this TANGO" with them.

Why are buyers acting this way? They will be sellers too.
What makes them think that they will buy low, get their terms & torture the seller? I'm not a mean person, but I hope they will get theirs. Then they'll understand their actions when they try to sell their home!...and what's this with the buyers making general statements that the prices have to come down? THEIR prices have to come down too when they sell! I'm only asking 4-5% increase per year (12yrs of owning), which is unheard of in this town. Some peole are asking triple from what they paid 3 years ago.
Anyone else experiencing rude buyers & realtors?

Grumpy Flipper

2006-10-23T08:57:00.000-05:00

Listen to this grumpy "flipper" rant while taking it on the chin by the housing bust... another greate excerpt from the Washington Post's "Real Estate Live".

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Ashburn, Va.: I'm so mad at my neighbor. I bought my new home here in Ashburn last summer and plan to sell it next year (after holding two years to avoid taxes) to make a nice return on my investment. The problem is my neighbor is trying to sell his house (very similar to mine) right now and he keeps lowering his asking price. Each time he lowers his price, I see my potential profits next year getting squashed. Doesn't he realize he's hurting the comps for all of his neighbors by doing this? I don't think he is acting very "neighborly" by doing this. I want to say something to him and tell him he should stop putting his interests ahead of his neighbors. Its people like him who are ruining the market for the rest of us. If he would just refuse to lower his price, we could maintain our comps and everyone would benefit. What can I do to stop him?

Kirstin Downey: Wow. Interesting question. There's nothing you can do. It's his house, of course. It's frustrating, to be sure. One word of advice: Don't resort to violence.

Seriously, he may just be desperate to sell. Perhaps he has an adjustable rate mortgage that is rising, or maybe an option ARM that is resetting to a much higher monthly payment. Maybe he's getting a divorce or has lost his job and doesn't want to talk about it. Or maybe he wants to move to Tahiti. (I do sometimes, don't you?)

I hear from many, many buyers and sellers each month, and many sellers are finding the only way to sell a home amid this growing inventory is to cut the price. Perhaps last year's prices were just illusory after all.

Penn Quarter Conundrum

2006-10-21T22:31:00.000-05:00

This excerpt taken from a session of the Washington Post's "Real Estate Live" Q&A with Maryann Haggerty seems to say it all...

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The Lovely Penn Quarter, D.C.: (Q) My friends and I came up with the idea last year that we could make a living by buying condos, living in them for two years, selling for a big profit and repeating. The appreciation would be more than we could make by working and the profits would be tax free. What could be better, right?

So I bought my first condo in Penn Quarter at the end of last summer. Now all my friends have decided to hold off. They say that they aren't sure real estate is "it" anymore. But I'm counting on my condo to appreciate significantly over the next two years to help me pay down some credit card debt I've been carrying for a while.

My condo hasn't really gone up in value since last summer, but I'm thinking the market is just taking a healthy breather before skyrocketing again. Should I be getting worried at this point or are my friends just being chicken littles during the market's pause in appreciation? I don't want to own my place if its not going to increase in value soon. Help!

Maryann Haggerty: (A) You, my dear, are a real estate speculator. In a normal market, no one would expect that owning a home for just two years would provide enough appreciation to cover the cost of selling, let alone to live on. But I'm assuming that you have a very high tolerance for risk, and that's why you decided to take this gamble. And it was a gamble, not an investment, right? You knew that?

Born of Necessity and Pragmatic Functionalism?

2006-10-20T04:30:00.000-05:00

How's aboout we write our own Tale on this one... How in the world did this house ever come to be and WHO in thier right mind is going to pay $629,000 for it!!??

I dont know about you but all I see is a pile of boxes!

Apparently, this 1200 sqare foot pile of "rotating" plywood boxes with laundry facilities specified as "LAUNDROMAT" will soon be featured on HGTV.

But don't get all excited and race right out this Sunday to catch the open house... It's being shown by "appointment only".

Here's the listings description as it reads on its ZipRealty.com listing sheet:

"Live in art! Extraordinary single-family house constructed newly in 2006, will be featured at hgtv, dwell and wallpaper magazine. There is no house like this. Marin plywood siding with sparurethane finish, rotating 3 boxes with 4 corner-skylights at each level to gain more natural light. Total 9 skylights. Innovative contemporary design using materials and forms that are born of necessity and pragmatic functionalism. Showing by appointment only."

Open House Sham.. Young and Rich? No.. Flippers!

2006-10-20T02:32:00.000-05:00

Read this post from the Boston.com Real Estate Boards... Would a "flipper" actually stage a fake relationship in order to "move product"? You decide...

Note: This story is from last January but apparently the luxury unit is still on the market!!

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I am so shocked by the unethical and economically unsound methods that people are now using to sell flipped properties that I'm posting my experience here.

My partner and I spent Sunday afternoon last November shopping open houses in Boston's South End, Beacon Hill, and Back Bay neighborhoods. It was a gorgeous New England fall day and there were other lookers, small in number, but more than recent weeks. If any were serious buyers, I didn't see it. All open houses of the half-dozen we saw were uninhabited and empty, and most have been on the market for months.

This itself indicated the real market change, but the shocking experience about what's happening in Boston's market occurred at an open house on one of Boston's most prestigious streets.

We were greeted by a charming and attractive young couple -- a well-dressed metrosexual and his beautiful, tall blond wife sporting a 2.5 carat emerald-cut diamond wedding ring. They told us that they were the owners, and that the realtor was ill. They said that this was their dream condo, but that his wife had accepted an medical internship out of town, so they had to sell this renovated condo and the home they were currently living in. He said he was an architect. She said that she was a dental student, and that they loved skiing and kayaking -- we could imagine her hauling skis all the way along the many-story walk-up. They had never lived in this property, but renovated it beautifully with an abundance of carrera marble. Cookies were baking in the high-end oven used for the very first time. Though I'm appalled and angry at the deception I believe that the seller perpetrated, I give him credit for having good taste.

Assessing what we saw as we walked away, we talked more about the couple than the property, who were more intriguing, but something didn't smell right, and it wasn't the cookies. Were they flipping this place? Young and rich? They were asking for nearly a million dollars for a property that they were renovating while living elsewhere. And she was a student with a really big rock.

So we did some web investigation when we got home. Of course we can't be certain about the conclusions we drew from what we found, but we're certain enough to write this anecdotal account.

Fact 1: The property was purchased in late spring of '05 for about $650K, and was listed at about $950K in late summer of '05.

Fact 2: The property is listed in the name of two men: the man who introduced himself as the seller, and another man who resides at the same address.

Fact 3: The mortgage on the property is a 30-year option interest-only ARM at about 2.125% for about 80% of the purchase price, adjustable monthly beginning in summer '05, with a cap of about 10%. The signatures on the mortgage are the two men who purchased the property, who also took out an additional line of credit of 10% of the property, leaving a 10% down payment.

Needless to say, these facts are not consistent in any way with the story we were told at the open house. We conclude that the seller's account was a total artifice -- a lie intended to create the appealing image of a rich, young, successful couple who really wanted this nearly one million dollar property, but had to give it up for professional reasons. The woman's ring had to have been a big CZ. I'm naturally a skeptical person, but never expect to be lied to in this way by a seller. During the showing, the seller referred to the woman as his sweetheart, and they discussed their plans for children. If he lied so blatantly about his life, what else would he lie about? This is not a seller with whom we would be keen to conduct business.

We also concluded that the flippers and speculators in Boston are becoming desperate in this changing market. The monthly mortgage payments on this property listed a few months ago at nearly a million dollars (now reduced about 5%) are less than $2K (and half of that with the interest-only option), but change monthly with rising interest rates.

The old advice "caveat emptor" should be used especially at the peak of any market. All the information mentioned above is freely available over the web -- be sure to use it in the consideration of any purchase.

It's January now, and the same property is still on the market. Information about sellers is available at:

Massachusetts Registry of Deeds

as well as the town websites where you are looking.

Nutcase Neighbor - Stealing Open House Signs

2006-10-19T15:23:00.000-05:00

Read this recent post from the GardenWeb's Buying and Selling Homes Forum... It seems neighbors are starting to play dirty!

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This is long, but worth it.

You may think this sounds made up, but it really happened on Sunday.

We're in a subdivision in suburban Milwaukee, and our home is listed with a limited service broker. There are several homes for sale in our neighborhood, some using limited service places and some using full service places. We advertise our open houses, both via signage and through the newspaper. We advertised an open house on Sunday from 2-5.

As we left for the Race for the Cure on Sunday morning (at around 8:30am), I placed an "Open House" sign at the entrance of the subdivision. This happens every Sunday, and usually everybody takes them down after their open house. There are some laws that regulate these signs in the city, but the city pretty much doesn't care as long as it doesn't get obnoxious or nobody complains. Signs have been in this location for years - it's never a big deal. I talked to the guy whos yard these signs are in - at least on the very outside of his lot. He said it would be fine, and it's never a problem. He said he doesn't like it when they're out there all week, but he said he knew that I always took mine down promptly. Cool.

Now it's noon, and we're just getting back from the race. My sign is gone. So are the other signs. The only one that's left a sandwich board sign for a Realtor's open house…at this one:

http://www.realtor.com/Prop/1062181799?lnksrc=00045

This house is about a block away from the signs.

Hmm. I first ask the guy I talked to before, and he said, "I saw they were gone about an hour after you talked to me." I then stopped by the Open House and asked the Realtor. I wouldn't expect a Realtor would do this, buy hey, I should be able to shake it out of them. Nope - she knew nothing. I happened to glance into her car on the way back to my car, and no signs.

So I put another sign that I had in the van out. My wife dropped my off at the house so I could clean the place up and get things ready in peace (without the kids).

It's now 1:55, and the Open House starts in 5 minutes. I question whether or not I should go down and check the signs. I almost talk myself out of it, but then I decide what the hell. I drive down there. Just as I'm approaching, I see the homeowner of the house above WALKING THROUGH HIS YARD TOWARD HIS GARAGE WITH MY OPEN HOUSE SIGN IN HIS HANDS. I slam on the brakes, exit the car, and bound up his (crappy) yard and demand to know, "what in the hell are you doing with my sign!?!?!" His kids are there. Neighbors are outside. I'm very loud. I'm very big. I'm very very intimidating. He is none of these.

He starts out with, "this sign is illegal! You can't put those there! You're breaking the law!" I then demand he return my sign. "No! I'm throwing it away!" I then pull it away from him. He didn't really have much of a choice there. I then start walking back to my car. The guy follows me. "Get out off my property! I'm calling the police!" I then said, "go ahead - you can then explain why you've stolen my property and the property of others." He goes onto to scream things about me "breaking the law" and that "I have no right to put those signs there" and that it doesn't matter if I got the property owners' permission. Hmm. I then asked him why he decided to take action against these signs now. Could it be that he owns a piece-of-crap home and that due to his incredibly poor landscaping and decorating job that he's sat on the market for this long? I'm I my car now, and then, get this, HE REACHES IN THE PASSENGER WINDOW AND TRIES TO GRAB MY SIGN. I pull back on it, and explain that if he does that again I'll open my car door and surely knock him out - I then smile and said, "I promise I will." He lets go.

Back to my house. I call the police. Open House visitors show up. It goes great. I explain it to the officer. I basically said, "if, for some reason, the sign was out there illegally, I would expect to hear from either the police or the city - I don't expect some nut to start enforcing the law for himself. Apparently, in his eyes, the law applies to only those in direct competition with himself." The officer agrees, and goes to "talk to him."

An hour later the guy pulls into my driveway. He tells me that he's put all the signs back out there, and that he's sorry and got "hot." He then tries to hand me a $20 to pay for the sign that he wrecked.

"Just shake my hand and apologize," I said. "I don't want your money."

There you go. Fun and games in the selling my home.