THE NEW YORK TIMES
By Adam Nossiter
Niger Delta becomes a cautionary tale for U.S.
Region has endured equivalent of Exxon Valdez spill (It's all bad) every year for 50 years.
(Picture not available) The boy plays in the muck, is what it is.
A boy plays by Bodo Creek in Bodo, Nigeria. As many as 546 million gallons of oil spilled into the Niger Delta over the last five decades, experts said.
BODO, Nigeria - Big oil spills are no longer news in this vast, tropical land. The Niger Delta, where the wealth underground is out of all proportion with the poverty on the surface, has endured the equivalent of the Exxon Valdez spill every year for 50 years by some estimates. The oil pours out nearly every week, and some swamps are long since lifeless.
Perhaps no place on earth has been as battered by oil, experts say, leaving residents here astonished at the nonstop attention paid to the gusher half a world away in the Gulf of Mexico. It was only a few weeks ago, they say, that a burst pipe belonging to Royal Dutch Shell in the mangroves was finally shut after flowing for two months: now nothing living moves in a black-and-brown world once teeming with shrimp and crab.
Not far away, there is still black crude on Gio Creek from an April spill, and just across the state line in Akwa Ibom the fishermen curse their oil-blackened nets, doubly useless in a barren sea buffeted by a spill from an offshore Exxon Mobil pipe in May that lasted for weeks.
The oil spews from rusted and aging pipes, unchecked by what analysts say is ineffectual or collusive regulation, and abetted by deficient maintenance and sabotage. In the face of this black tide is an infrequent protest — soldiers guarding an Exxon Mobil site beat women who were demonstrating last month, according to witnesses — but mostly resentful resignation.
'Shell oil on my body'
Small children swim in the polluted estuary here, fishermen take their skiffs out ever farther — “There’s nothing we can catch here,” said Pius Doron, perched anxiously over his boat — and market women trudge through oily streams. “There is Shell oil on my body,” said Hannah Baage, emerging from Gio Creek with a machete to cut the cassava stalks balanced on her head.
That the Gulf of Mexico disaster has transfixed a country and president they so admire is a matter of wonder for people here, living among the palm-fringed estuaries in conditions as abject as any in Nigeria, according to the United Nations. Though their region contributes nearly 80 percent of the government’s revenue, they have hardly benefited from it; life expectancy is the lowest in Nigeria.
“President Obama is worried about that one,” Claytus Kanyie, a local official, said of the gulf spill, standing among dead mangroves in the soft oily muck outside Bodo. “Nobody is worried about this one. The aquatic life of our people is dying off. There used be shrimp. There are no longer any shrimp.”
In the distance, smoke rose from what Mr. Kanyie and environmental activists said was an illegal refining business run by local oil thieves and protected, they said, by Nigerian security forces. The swamp was deserted and quiet, without even bird song; before the spills, Mr. Kanyie said, women from Bodo earned a living gathering mollusks and shellfish among the mangroves.
A cautionary tale for the U.S.
With new estimates that as many as 2.5 million gallons of oil could be spilling into the Gulf of Mexico each day, the Niger Delta has suddenly become a cautionary tale for the United States.
As many as 546 million gallons of oil spilled into the Niger Delta over the last five decades, or nearly 11 million gallons a year, a team of experts for the Nigerian government and international and local environmental groups concluded in a 2006 report. By comparison, the Exxon Valdez spill in 1989 dumped an estimated 10.8 million gallons of oil into the waters off Alaska.
So the people here cast a jaundiced, if sympathetic, eye at the spill in the gulf. “We’re sorry for them, but it’s what’s been happening to us for 50 years,” said Emman Mbong, an official in Eket.
The spills here are all the more devastating because this ecologically sensitive wetlands region, the source of 10 percent of American oil imports, has most of Africa’s mangroves and, like the Louisiana coast, has fed the interior for generations with its abundance of fish, shellfish, wildlife and crops.
Thursday, June 17, 2010
Tuesday, March 16, 2010
FHA increasing Insurance Premium news
HUD announced that Mortgage Insurance Premiums are being increased for FHA loans. The ruling, effective 4/5/10 for all new loans. Existing loans already in process will not be affected.
Now for a buyer to be able to purchase a property with as little as 3.5% down, through the FHA program, insures the lender in the case of foreclosure. The cost of this insurance is passed along to the buyer in two ways. 1 Upfront Mortgage Insurance, the amount added to the initial loan amount and 2 Monthly Mortgage Insurance-an additional monthly payment in addition to the mortgage payment, taxes and insurance.
The current cost of the upfront premium is 1.75% of the loan amount. The new upfront amount will be 2.25% of the loan amount. If a borrower is applying for an FHA loan in the amount of $729,750 the current cost is $12,770. As of April 5th the new cost will be $16,419. On a $300,000 loan the cost currently is $5,250 but will soon be $6,750.
In the majority of cases the borrower finances the premium into the loan over the 30 year period. It may be paid at closing by either the buyer or the seller to avoid having to finance it into the loan. When the loan is paid off FHA will keep the balance of proceeds. The Monthly Mortgage Insurance is required to be paid for the greater of 5 years or until the loan to value reaches 78%.
The Monthly Mortgage Insurance cost to buyers currently will remain the same for now. There have been discussions about FHA increasing the down payment requirement from 3.5% or increasing the Monthly Mortgage Insurance payment but neither have been approved as of yet. The belief by HUD is the extra amount added to the loan upfront is less of an obstacle for the homebuyer as opposed to more money down or a higher monthly insurance payment. HUD recognizes the need to keep the housing industry productive while at the same time taking steps to offset the losses they are accumulating.
Please consult a member of the Deborah Shane Team.
For additional information at: 949-521-3512
Now for a buyer to be able to purchase a property with as little as 3.5% down, through the FHA program, insures the lender in the case of foreclosure. The cost of this insurance is passed along to the buyer in two ways. 1 Upfront Mortgage Insurance, the amount added to the initial loan amount and 2 Monthly Mortgage Insurance-an additional monthly payment in addition to the mortgage payment, taxes and insurance.
The current cost of the upfront premium is 1.75% of the loan amount. The new upfront amount will be 2.25% of the loan amount. If a borrower is applying for an FHA loan in the amount of $729,750 the current cost is $12,770. As of April 5th the new cost will be $16,419. On a $300,000 loan the cost currently is $5,250 but will soon be $6,750.
In the majority of cases the borrower finances the premium into the loan over the 30 year period. It may be paid at closing by either the buyer or the seller to avoid having to finance it into the loan. When the loan is paid off FHA will keep the balance of proceeds. The Monthly Mortgage Insurance is required to be paid for the greater of 5 years or until the loan to value reaches 78%.
The Monthly Mortgage Insurance cost to buyers currently will remain the same for now. There have been discussions about FHA increasing the down payment requirement from 3.5% or increasing the Monthly Mortgage Insurance payment but neither have been approved as of yet. The belief by HUD is the extra amount added to the loan upfront is less of an obstacle for the homebuyer as opposed to more money down or a higher monthly insurance payment. HUD recognizes the need to keep the housing industry productive while at the same time taking steps to offset the losses they are accumulating.
Please consult a member of the Deborah Shane Team.
For additional information at: 949-521-3512
Wednesday, March 3, 2010
Foreclosure fortunes in 14 days scam, Buyer beware!
John Alexander foreclosure scam, John Alexander foreclosure fortunes, John Alexander’s foreclosure fortunes in 14 days. Foreclosure fortunes in 14 days scam
The three infomercials that come up night after night, as if mocking my insomnia, are:
· John Beck’s Free & Clear Real Estate System
. Foreclosure fortunes in 14 days
· John Alexander’s Foreclosure Fortunes in 14 Days
· Jeff Paul’s Shortcuts to Internet Millions
These scammers are all a part of Mentoring of America.
Here’s how the scam works: They sell their “systems” for anywhere from $19.95 to $39.95. Next, they have telemarketing companies contact everyone who bought a system and sell them expensive “personal coaching services” that will supposedly help them use the system and earn even more money. These services cost between $195 and $14,995. Even if you don’t fall for that, once you buy the program you are automatically enrolled in continuity programs which cost $39.95 a month.
They offer a 30-day guarantee but a quick search on Google shows plenty of people who claim that not only did they not get their money back but they couldn’t get into contact with the company to cancel.
Breakdown of each individual scam
John Beck claims that his system can help you buy properties in foreclosure for pennies on the dollar, that you will own this property free and clear with no monthly payments, that you can find, purchase and resell these properties over the internet and that you can do all of this with no real estate license. If you can really find all of this on the internet, and you probably can, why do you need his system? We all have access to Google, and that’s free. $19.95 + shipping & handling on www.johnbeck.tv.
The FTC charged John Alexander’s Real Estate Riches in 14 Days. Now he’s calling it, John Alexander’s Foreclosure Fortunes in 14 Days. His website claims that he can teaches you to cash in on “today’s foreclosure tidal wave simply and easily”—all of this without using your own money or credit, and again, without a license. He also offers a free 30-day trial of his foreclosure vault which starts billing at $39.95 a month if you don’t (or can’t) cancel.
In Jeff Paul’s Shortcuts to Millions he promises that you can make millions sitting at home in your underwear. He claims you can earn $50,000 a month—without any prior experience with internet businesses. He promises “proven, turnkey internet businesses.” The turnkey businesses provided are nothing of the sort. You have to create your own products from scratch, enhance the simplistic websites provided and do all of the marketing yourself.
Mentoring of America The “coaching services” are provided by Mentoring of America LLC and Family Products, LLC. These services cost between $195 and $14,995.
Operation Short Change, This past summer the FTC brought charges against all three of these scammers in a crackdown called Operation Short Change. These cases are still in litigation but if the FTC prevails, these con artists will have to substantially change their infomercials and websites. The FTC tries to stop the misconduct and to get people’s money back.
The FTC told me that people should, “Watch out for anything that sounds too good to be true. When you are promised that all you have to do is pay a small feel for big rewards that’s a huge red flag.”
They recommend that people:
· check with the BBB and the State Attorney General
· not give out any account information
· make sure you are not getting signed up for a monthly recurring club or fee
If you’ve been the victim of a scam contact your State Attorney General or contact the FTC directly.
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If you would like to see a real foreclosure properties, then click here to do a free foreclosure seach at: US FORECLOSURE SEARCH. Or if you want to search the Orange County MLS, then go here: Orange County MLS.
The three infomercials that come up night after night, as if mocking my insomnia, are:
· John Beck’s Free & Clear Real Estate System
. Foreclosure fortunes in 14 days
· John Alexander’s Foreclosure Fortunes in 14 Days
· Jeff Paul’s Shortcuts to Internet Millions
These scammers are all a part of Mentoring of America.
Here’s how the scam works: They sell their “systems” for anywhere from $19.95 to $39.95. Next, they have telemarketing companies contact everyone who bought a system and sell them expensive “personal coaching services” that will supposedly help them use the system and earn even more money. These services cost between $195 and $14,995. Even if you don’t fall for that, once you buy the program you are automatically enrolled in continuity programs which cost $39.95 a month.
They offer a 30-day guarantee but a quick search on Google shows plenty of people who claim that not only did they not get their money back but they couldn’t get into contact with the company to cancel.
Breakdown of each individual scam
John Beck claims that his system can help you buy properties in foreclosure for pennies on the dollar, that you will own this property free and clear with no monthly payments, that you can find, purchase and resell these properties over the internet and that you can do all of this with no real estate license. If you can really find all of this on the internet, and you probably can, why do you need his system? We all have access to Google, and that’s free. $19.95 + shipping & handling on www.johnbeck.tv.
The FTC charged John Alexander’s Real Estate Riches in 14 Days. Now he’s calling it, John Alexander’s Foreclosure Fortunes in 14 Days. His website claims that he can teaches you to cash in on “today’s foreclosure tidal wave simply and easily”—all of this without using your own money or credit, and again, without a license. He also offers a free 30-day trial of his foreclosure vault which starts billing at $39.95 a month if you don’t (or can’t) cancel.
In Jeff Paul’s Shortcuts to Millions he promises that you can make millions sitting at home in your underwear. He claims you can earn $50,000 a month—without any prior experience with internet businesses. He promises “proven, turnkey internet businesses.” The turnkey businesses provided are nothing of the sort. You have to create your own products from scratch, enhance the simplistic websites provided and do all of the marketing yourself.
Mentoring of America The “coaching services” are provided by Mentoring of America LLC and Family Products, LLC. These services cost between $195 and $14,995.
Operation Short Change, This past summer the FTC brought charges against all three of these scammers in a crackdown called Operation Short Change. These cases are still in litigation but if the FTC prevails, these con artists will have to substantially change their infomercials and websites. The FTC tries to stop the misconduct and to get people’s money back.
The FTC told me that people should, “Watch out for anything that sounds too good to be true. When you are promised that all you have to do is pay a small feel for big rewards that’s a huge red flag.”
They recommend that people:
· check with the BBB and the State Attorney General
· not give out any account information
· make sure you are not getting signed up for a monthly recurring club or fee
If you’ve been the victim of a scam contact your State Attorney General or contact the FTC directly.
Popular Incoming Search Queries For This Topic
· John Alexander foreclosure fortunes scam
· Foreclosure fortunes scam
· Foreclosure fortunes in 14 days scam
· Foreclosure fortunes john Alexander scam
· Foreclosure fortunes in 14 days does it work
· John Alexander foreclosure
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· j r Alexander foreclosure information
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· John Alexander’s foreclosure fortunes in 14 days
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· Foreclosure fortunes ftc
· John Alexandria foreclosure how does it work
· John Alexander’s foreclosure fortunes
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Tags Associated with This Post are:
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If you would like to see a real foreclosure properties, then click here to do a free foreclosure seach at: US FORECLOSURE SEARCH. Or if you want to search the Orange County MLS, then go here: Orange County MLS.
Friday, May 22, 2009
News Flash! NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES
Current Mortgage Rates: 5/22/2009 ~ 30 Year Fixed: 4.86% ~ 15 Year Fixed: 4.52% ~ 1 Year Adj: 4.71%See current Real Estate News & Daily Mortgage Rates now
This week, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure. Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this "cram-down" legislation.
The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:
HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.
LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.
NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender's identity, address, telephone number, authorized representative's contact information, and other relevant information. This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans.
Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.
President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government. FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes.
It's great living on the coast of CA, especially now that it's a buyers market and prices have come down so much. South Orange County is no exception, check it out at: Ocean View Properties in Southern California. If you are curious about the Real Estate Market, or would like to consider buying or selling an Orange County Home, send me Deborah Shane an email or call me at: 949-218-2018 Email: CaCoastalProperties@gmail.com or email me I will answer all your questions and send you current Orange County Bank Owned and Short Sale Home Listings.
This week, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure. Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this "cram-down" legislation.
The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:
HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.
LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.
NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender's identity, address, telephone number, authorized representative's contact information, and other relevant information. This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans.
Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.
President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government. FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes.
It's great living on the coast of CA, especially now that it's a buyers market and prices have come down so much. South Orange County is no exception, check it out at: Ocean View Properties in Southern California. If you are curious about the Real Estate Market, or would like to consider buying or selling an Orange County Home, send me Deborah Shane an email or call me at: 949-218-2018 Email: CaCoastalProperties@gmail.com or email me I will answer all your questions and send you current Orange County Bank Owned and Short Sale Home Listings.
Friday, March 13, 2009
Why Use a REALTOR for Orange County Real Estate?
Many consumers consider selling their home directly but eventually turn to REALTORS®. Smart home sellers realize they need the expertise in pricing their home, making connections with REALTORS® working with buyers, arranging and staffing open houses, and coordinating with other professionals in the sales process.
Only about half of all real estate agents are REALTORS® -- the top half, in our not-so-humble opinion. REALTORS® work independently, for small agencies, or for large brokerages, like Deborah Shane Orange County Realtor. They help people buy and sell residential or commercial properties, vacation homes, and land; they conduct appraisals; they operate in the United States and in other countries; some specialize in auctions; and others are buyer's representatives.
REALTORS® Are Experts
Eighty-five percent of sellers were assisted by a real estate agent when selling their home, according to NAR's 2007 Profile of Home Buyers and Sellers, and 79 percent of buyers purchased their home through a real estate agent or broker.
REALTORS® Are Part of the Community and help to end housing discrimination - during April 2009, which is Fair Housing Month, and all year long. REALTORS® are active members of their communities.
REALTORS® Protect You
Only REALTORS® follow a Code of Ethics, To be a member of NAR and a REALTOR®, a real estate agent must abide by a set of professional principles and serve clients fairly.
Learn how the Code of Ethics affects everyday real estate practices
If a REALTOR® represents you, whether you are buying or selling a home, you can count on that REALTOR® to:
1. Be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.For example, if REALTORS® represent a buyer with a spotty credit history, they can’t be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.
2. Put your interests ahead of his or her own, at all times. A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.
3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS® should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR® should end the business relationship with that seller.
4. Be truthful in all communications with the public.When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals’ work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®’s experience and can make an informed decision when choosing real estate representation.
Only about half of all real estate agents are REALTORS® -- the top half, in our not-so-humble opinion. REALTORS® work independently, for small agencies, or for large brokerages, like Deborah Shane Orange County Realtor. They help people buy and sell residential or commercial properties, vacation homes, and land; they conduct appraisals; they operate in the United States and in other countries; some specialize in auctions; and others are buyer's representatives.
REALTORS® Are Experts
Eighty-five percent of sellers were assisted by a real estate agent when selling their home, according to NAR's 2007 Profile of Home Buyers and Sellers, and 79 percent of buyers purchased their home through a real estate agent or broker.
REALTORS® Are Part of the Community and help to end housing discrimination - during April 2009, which is Fair Housing Month, and all year long. REALTORS® are active members of their communities.
REALTORS® Protect You
Only REALTORS® follow a Code of Ethics, To be a member of NAR and a REALTOR®, a real estate agent must abide by a set of professional principles and serve clients fairly.
Learn how the Code of Ethics affects everyday real estate practices
If a REALTOR® represents you, whether you are buying or selling a home, you can count on that REALTOR® to:
1. Be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.For example, if REALTORS® represent a buyer with a spotty credit history, they can’t be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.
2. Put your interests ahead of his or her own, at all times. A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.
3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS® should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR® should end the business relationship with that seller.
4. Be truthful in all communications with the public.When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals’ work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®’s experience and can make an informed decision when choosing real estate representation.
Monday, October 27, 2008
The Basics of Foreclosure “Short–Sales” William Bronchick
What is a Short Sale?
You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.”
Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.
The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!
The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.
Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.
Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.
The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you. If you would like to put your San Diego home on the market, but owe more than it is worth, then a request to your bank for a short pay off, may be what you need. Please call me for more Orange County Home & market information at: 949-521-3512, or email me at CaCoastalProperties@gmail.com
You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.”
Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.
The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!
The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.
Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.
Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.
The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you. If you would like to put your San Diego home on the market, but owe more than it is worth, then a request to your bank for a short pay off, may be what you need. Please call me for more Orange County Home & market information at: 949-521-3512, or email me at CaCoastalProperties@gmail.com
Sunday, October 26, 2008
Foreclosures add to tight rental market, Mercury News
Lupe Parga and her family must find a house to rent, and soon. In late June, the 4-bedroom home she and her husband owned in San Jose's Evergreen neighborhood was foreclosed upon. Parga, her husband, their four kids and Parga's sister's family are all still living there while seeking a rental that can hold both families. Meanwhile, they're trying to stave off eviction from their former property.
"It's really hard. Things are just getting rented right away," said Parga, an accountant who was recently laid off from her job with a janitorial services company.
Parga said she's applied for about a dozen rentals in the area since July, and is prepared to pay about $3,500 a month for a house with at least four bedrooms. But she's had no success yet.
Record numbers of Silicon Valley homeowners have been foreclosed upon this year, and most must seek rental housing once they leave their homes. If tenant-occupied houses are in foreclosure, tenants nearly always get evicted, pushing them into the rental market again. And many renters who could afford to buy homes size up the bleak economy and opt not to take on mortgages and home ownership.
The result: It's a competitive market for those seeking reasonably priced rentals, and it's a pretty good time to be a landlord.
"The rental market has definitely become tighter in the sense that rents are going up," said Martin Eichner of Project Sentinel in Sunnyvale, an organization that provides landlord-tenant dispute resolution services, as well as foreclosure prevention help. Average apartment rents rose 5.2 percent in Santa Clara County in the third quarter, to $1,708 a month, according to RealFacts, a Marin County firm that measures average monthly rents for all types of units in complexes of at least 50 units.
But rent increases in the third quarter were not as steep as in the second quarter, a sign of the softening economy. And RealFacts said apartment complexes were 95.6 percent full in the July-to-September quarter, down from 96.7 percent a year earlier.
One reason apartment occupancy rates are slipping is that more single-family houses are coming onto the market as rentals, said Joshua Howard, executive director of the local division of the California Apartment Association. Some of those houses are previous foreclosures that were purchased by investors.
"That's providing competition to multi-unit buildings," Howard said. "The rental housing economy has more options available right now."
Michelle Harris, for example, owns a two-bedroom house near Interstate 280 at the north edge of San Jose's Willow Glen neighborhood. While she was fixing it up to rent in July, she placed an ad online, asking for monthly rent of $1,800. The volume of responses, and the aggressive tactics of some of the applicants, told her she'd set the rent too low, Harris wrote in an e-mail to the Mercury News. Because of renovation delays, she didn't rent the house out until September. By then she'd set the rent at $2,300, and still had a list of qualified tenants from which to choose.
"Everyone I showed the house to told me about the tight rental market," Harris said. In the end, she chose a couple who had damaged credit because they had gone through foreclosure. "But I could tell they were good tenants so I let them have the house," she said.
Ron Stern, owner of the rental listings subscription service Bay Rentals, said most of the local landlords who list with him "are not too drastically raising rents because they know the economic situation out there won't support that." And, he said, many landlords are more averse to pets than they are to foreclosures on tenants' records — as long as the tenants have not completely ruined their credit by falling behind on all their other debts as well.
Along with economic uncertainty, high gas prices have affected the rental market, Howard said. Members of his apartment industry trade group report that tenants are less willing to live far from their jobs than in years past, and would rather share housing close to their work than pay the high price of commuting. In addition, some apartment managers say all their two-bedroom units are occupied, but not one-bedrooms, indicating that more renters want to economize, splitting the rent with a roommate.
Despite slightly increased vacancy rates at apartment complexes, the market remains very tough for renters like Lupe Parga, with poor credit and the need to move soon. Parga said she will keep searching for a rental house in the Evergreen area, so her children can stay at the schools they now attend. She said she'll be sorry to leave her house, which she and her husband bought from her grandmother for nearly $800,000 in early 2006. Its value has fallen to about $600,000 this year. Even with family members' help, they couldn't afford the payments on their adjustable-rate mortgage, and they fell into foreclosure. They have stalled eviction by trying to find family members who would buy the house back from their lender. But eviction could occur anytime now.
Having foreclosure on her credit record has been "a huge setback" when seeking to rent, she said. "Seeing the way things are, you'd think people would be a little more lenient. "... I'm sure there's a lot of people in this situation." To find rentals in South Orange County Ca, just call Deborah at: 949-521-3512 or go to my site to search yourself at: Search Orange County Rentals Yourself!!
"It's really hard. Things are just getting rented right away," said Parga, an accountant who was recently laid off from her job with a janitorial services company.
Parga said she's applied for about a dozen rentals in the area since July, and is prepared to pay about $3,500 a month for a house with at least four bedrooms. But she's had no success yet.
Record numbers of Silicon Valley homeowners have been foreclosed upon this year, and most must seek rental housing once they leave their homes. If tenant-occupied houses are in foreclosure, tenants nearly always get evicted, pushing them into the rental market again. And many renters who could afford to buy homes size up the bleak economy and opt not to take on mortgages and home ownership.
The result: It's a competitive market for those seeking reasonably priced rentals, and it's a pretty good time to be a landlord.
"The rental market has definitely become tighter in the sense that rents are going up," said Martin Eichner of Project Sentinel in Sunnyvale, an organization that provides landlord-tenant dispute resolution services, as well as foreclosure prevention help. Average apartment rents rose 5.2 percent in Santa Clara County in the third quarter, to $1,708 a month, according to RealFacts, a Marin County firm that measures average monthly rents for all types of units in complexes of at least 50 units.
But rent increases in the third quarter were not as steep as in the second quarter, a sign of the softening economy. And RealFacts said apartment complexes were 95.6 percent full in the July-to-September quarter, down from 96.7 percent a year earlier.
One reason apartment occupancy rates are slipping is that more single-family houses are coming onto the market as rentals, said Joshua Howard, executive director of the local division of the California Apartment Association. Some of those houses are previous foreclosures that were purchased by investors.
"That's providing competition to multi-unit buildings," Howard said. "The rental housing economy has more options available right now."
Michelle Harris, for example, owns a two-bedroom house near Interstate 280 at the north edge of San Jose's Willow Glen neighborhood. While she was fixing it up to rent in July, she placed an ad online, asking for monthly rent of $1,800. The volume of responses, and the aggressive tactics of some of the applicants, told her she'd set the rent too low, Harris wrote in an e-mail to the Mercury News. Because of renovation delays, she didn't rent the house out until September. By then she'd set the rent at $2,300, and still had a list of qualified tenants from which to choose.
"Everyone I showed the house to told me about the tight rental market," Harris said. In the end, she chose a couple who had damaged credit because they had gone through foreclosure. "But I could tell they were good tenants so I let them have the house," she said.
Ron Stern, owner of the rental listings subscription service Bay Rentals, said most of the local landlords who list with him "are not too drastically raising rents because they know the economic situation out there won't support that." And, he said, many landlords are more averse to pets than they are to foreclosures on tenants' records — as long as the tenants have not completely ruined their credit by falling behind on all their other debts as well.
Along with economic uncertainty, high gas prices have affected the rental market, Howard said. Members of his apartment industry trade group report that tenants are less willing to live far from their jobs than in years past, and would rather share housing close to their work than pay the high price of commuting. In addition, some apartment managers say all their two-bedroom units are occupied, but not one-bedrooms, indicating that more renters want to economize, splitting the rent with a roommate.
Despite slightly increased vacancy rates at apartment complexes, the market remains very tough for renters like Lupe Parga, with poor credit and the need to move soon. Parga said she will keep searching for a rental house in the Evergreen area, so her children can stay at the schools they now attend. She said she'll be sorry to leave her house, which she and her husband bought from her grandmother for nearly $800,000 in early 2006. Its value has fallen to about $600,000 this year. Even with family members' help, they couldn't afford the payments on their adjustable-rate mortgage, and they fell into foreclosure. They have stalled eviction by trying to find family members who would buy the house back from their lender. But eviction could occur anytime now.
Having foreclosure on her credit record has been "a huge setback" when seeking to rent, she said. "Seeing the way things are, you'd think people would be a little more lenient. "... I'm sure there's a lot of people in this situation." To find rentals in South Orange County Ca, just call Deborah at: 949-521-3512 or go to my site to search yourself at: Search Orange County Rentals Yourself!!
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