After seeing some homes that have been foreclosed on, I think this is a great idea. Bait the homes so if thieves want to vandalize a home, they’ll get caught. The biggest problem seems to be that some owners of foreclosed homes are the guilty ones. They trash the place, taking dishwashers, stoves, microwaves, cabinets and even the plumbing fixtures and wiring.
So it’s nice that the police in St. Louis are contemplating what they are calling “bait” houses – gussying up empty homes with steal-able stuff like flat-screen TVs and new computers in order to woo crooks to the scene.
The bait will all be wired, so when the thieves make off with it, the cops will be right behind. Hidden cameras will confirm that they got the bad guys.
The police say the program has other advantages as well. “I hope that for every person that we arrest out of a bait house, there’s another 20 who don’t decide to break into a house because they think it might be a bait house,” police department spokesman Rick Eckhard says.
However, how do you punish the former owners of foreclosed homes that strip their homes before they leave? Any ideas?
More people are becoming landlords in an economy where selling a home can be challenging.
The nation’s second-largest home insurer, Allstate Corp., says the number of homeowners converting their homeowners insurance to landlord policies rose 27 percent in the first quarter of 2009.
Jim Bass of Jim Bass Real Estate Group in Frederick, Md., says he has begun offering property-management services for absent owners, many of whom are convinced it will be easier to sell in a couple of years.
Holding on probably isn’t the best answer, says economist Edward Leamer, director of the UCLA Anderson Forecast. Leamer suggests negotiating a short sale instead. “Better to take your losses and move on.”
Another factor to consider is whether renting will reduce or eliminate the value of the capital-gains tax exclusion. Federal tax law requires living in the home at least two of the previous five years to qualify for the full capital-gains tax exclusion when the house is sold. Of course, if there is no profit to be had, then this isn’t a problem.
Source: The Wall Street Journal, M.P. McQueen
We have also started offering property management services. If you have a home that you would like to rent, call us at 530-272-2613.
Statistics suggest some improvement in the housing market, but the good news for homeowners might be just a temporary setback for real estate investors searching for a good deal.
Decreases in the number of foreclosure filings in each state and increases in
prices in many of those same states seem to suggest good news, although the
news is still mixed in some parts of the country. In five of the top markets,
filings have decreased: California (down by nearly 5%), Michigan (down by just
over 4%), Florida (down by 8.5%), Arizona (down by 9%), and Texas (down by
more than 7%). However, Colorado has seen the largest drop in foreclosures
with a decrease of more than 13%. Unfortunately, the statistics are not so
promising for all states. West Virginia, for example, saw an increase in
foreclosures of more than 17%.
Within these and other key states, the changes in foreclosure filings in major
cities also seem to be showing improvement with only a few exceptions. In
Phoenix, the number of foreclosures dropped by over 8%, the rates in Memphis
fell by nearly 12%, the filings in Miami toppled by just over 14%. Other
states also saw a decrease: Atlanta (2%) and Houston (3.7%). However, both
Chicago and Detroit saw their rates of foreclosure increase by less than 1%
and by just over 5%, respectively.
Although fewer foreclosures can help reduce the supply of available homes on
the market, the prices are also important. In four out of the five top real
estate markets, prices have increased. In both California and Florida, the
price increase is less than 1% bringing the average costs to $347,878 and
$222,950, respectively. Michigan’s home prices went up by 1.4% to $91,614
while the prices in Texas increased by 4.8% to $116,016. Prices actually
decreased in Georgia: falling 2.6% to $126,914. The lowest average price for
homes, according to ForeclosureListings.com, is $60,940 in Ohio.
How about this, a man in New York has been operating a $40 million Ponzi scheme for 31 years. This is a mini-Madoff except that Madoff only lasted 20 years, and Philip Barry, 52, ran the scam without detection for 31 years. He invested the money in real estate and a mail order porn business.
What’s interesting, in both Madoff and Barry’s downfall was the economy. Even more interesting if you can call it that, both were never caught by SEC, but turned themselves in. In both cases, the downfall of the economy led to the downfall of their Ponzi schemes. Money started to run out, so they turned themselves in. What, no money, they develop a conscience?
Prosecutors said that Mr. Barry started his scam in 1978. Bernard Madoff’s $65 billion scam ran for at least 20 years. He was jailed in June for 150 years.
Investigators said they learned of the scheme when Barry turned up at the U.S. Attorney’s office in Manhattan in August of 2008 and asked to speak to a prosecutor. They said Barry acknowledged that, for years, he had been paying off his guaranteed profits by taking money from some customers to cover withdrawals made by others.
Working from a small office in the Brooklyn neighborhood of Bay Ridge, far from the city’s financial center, Barry claimed to be investing in stock options and guaranteed his neighborhood clients solid returns.
But in reality, investigators said, Barry was using much of the money to speculate on real estate. He bought an office building in Brooklyn and big tracts of undeveloped land upstate.
Authorities said he hid the scheme by feeding his customers financial statements boasting of hefty profits that didn’t exist. Sounds familiar, Madoff used the same tactics.
Some of the cash was used to pay for Mr. Barry’s own expenses at restaurants and petrol stations and to maintain the approximately 60 properties he had bought, prosecutors said.
Other funds were diverted to a mail-order business called Barry Publications, which sold pornographic materials
“It’s all in real estate,” Barry said. “I’m going to keep on working to make sure everyone gets the profit they are entitled to.”
Investors have sued Mr. Barry for the return of their cash but are unlikely to receive the bulk of it back. The properties owned by Leverage Group are thought to be worth slightly over $1 million in total. At least 19 of the properties are in foreclosure.
How did this all happen? A promise of high returns on investment, promising 12% to 20% return on money invested. If it’s too good to be true, it’s not true. People’s greed gets them every time.
To contact the Bridgeport State Park call (530) 432-2546
One of the most beautiful bridges in Nevada County, if not in all of the Gold Country is the Bridgeport covered bridge on the South Fork of the Yuba River in the South Yuba River State Park.
The bridge was originally constructed in 1862 and was part of the Virginia Turnpike Company Toll Road that served the northern mines and traffic to and from Virginia City and the Comstock Lode in Nevada. The bridge is 230 feet (70 m) long. Bridgeport Bridge, or “Wood’s Crossing”, is the longest single span covered bridge in existence. Bridgeport Bridge was built as part of a toll road. Toll roads were authorized by the State of California in 1853 as a means to start construction of much needed roads by private companies.
On October 20, 1997, there was a flood on the South Yuba River that almost took the bridge out. It was 135 years old at the time and workers put in 10 hour days making repairs on the landmark wooden bridge.
More than a century ago, pioneers and miners paid a $2 toll to drive their wagons and horses across a covered wooden bridge over the South Yuba River at Wood’s Crossing. Now, traffic is limited to pedestrians only and there is no toll.
The historical plague dedicated to the bridge which reads:
Bridgeport (NYE’s Crossing) Covered Bridge
Built in 1862 by David Issac Johnwood with lumber from his mill in Sierra County, This Bridge was part of the Virginia Turnpike Company Toll Road which served the Northern Mines and the busy Nevada Comstock Lode. Utilizing a combination truss and arch construction, it is one of the oldest housed spans in the west and the longest single span, wood covered bridge in the United States.
California Registered Historical Landmark No. 390
Plaque placed by the California State Park Commission in cooperation with the Nevada County Historical Society and the Wm. B. Meek-Wm. M. Stewart Chapter No. 10, E Clampus Vitus, May 23, 1964
To contact the Bridgeport State Park call (530) 432-2546
The Auburn 49er Fire could have been much worse. 60 homes burned. It was headed for Lake of the Pines. In 1991, the Oakland hills fire destroyed 3,354 homes, 25 people died and hundreds were injured.
What happened in Oakland and Auburn could happen here in Grass Valley and Nevada City. At the start of the Yuba Fire last month, I stood on my deck in North San Juan and watched a tidal wave of billowing black smoke explode miles into the sky. It was scary.
This North San Juan area gets hit with a catastrophic fire every thirty years. My wife Muriel left this home for a day trip to Tahoe back in 1960. “When I left it was green and beautiful. When I came back it was ash and charred wood.” The home survived. The trees didn’t.
The wind decides the fire. Fortunately, the Yuba Fire wind blew gently, and not in our direction. In the Auburn fire, however, gusts of wind pushed the fire forward and it surged beyond all fire defenses.
In Oakland, Santa Ana winds blew in from the south, swirling, gusting and fanning flames that engulfed house after house. No air tankers were available that first day to fight a city fire.
The home owner’s best fire defense is to clear 100 feet around your house. But even that’s no guarantee against a tidal wave of flame and their falling embers. I’ve seen homes with stucco walls and tile roofs burn as fire licked under the eaves and through the wooden front door.
The only house to survive in one Oakland hills neighborhood was a cement home built by a Vietnam refugee who vowed never to lose his home to fire again. He didn’t. But ash, dust and reconstruction noise surrounded his home for years. There’s no escaping the after effects.
Home owners need to prepare for the consequences of a fire. For those with well water, if the electrical wires burn down and there’s no electricity, the pump in the well won’t work – no water. If the driveway is blocked by fire, be sure to have a secondary plan of escape.
And get to know your local fire department, especially if you’re in a rural area with volunteer firefighters. In one Oakland neighborhood, the fire department saved one home owned by a firefighter who fought flames in another part of town. They saved his home although others around it were destroyed.
We had big fires up here in 1960 and 1989. 30 years later is about 2020. Be prepared.
Paul August is a freelance writer and singer. His latest CD, “Welcome to Nevada City, God’s Country,” is available through cdbaby.com
Former Dallas Cowboys linebacker Eugene “The Hitting Machine” Lockhart was arrested by FBI agents at his Carrollton home Thursday morning after being indicted on mortgage fraud charges, the U.S. Attorney’s office said.
Lockhart, 48, and eight others were indicted by a federal grand jury on various charges, including conspiracy, bank fraud and wire fraud. The alleged scheme involved approximately 54 fraudulent residential property loan closings resulting in the funding of $20.5 million in fraudulent loans.
Lockhart, who played for the Cowboys from 1984-90, and co-conspirator Lendell Beacham, 50, of DeSoto, were scheduled to appear before a federal magistrate at 1 p.m. If convicted, they could face up to 30 years in prison and a $1 million fine.
The indictment alleges that Lockhart and the others ran a scheme in which they located single-family residences for sale in the Dallas area, including distressed and pre-foreclosure properties, and negotiated a sales price with the seller. They allegedly created surplus loan proceeds by inflating the sales price to an arbitrary amount substantially more than the fair market value of the residence.
The statement from the U.S. Attorney’s office added that the group recruited individuals to submit false financial information and act as “straw purchasers” or “straw borrowers,” promising to pay them a bonus or commission for their participation.
It’s free and all exhibitors will receive free tickets to a Draft Horse Classic performance
Entries are now being accepted for the Harvest Fair, September 24 – 27, at the Nevada County Fairgrounds. The deadline for Nevada County residents to turn in entry forms to enter exhibits is 5 pm on Friday, September 18. It’s free to enter, and all exhibitors will receive free tickets to the Thursday evening performance of the Draft Horse Classic.
Entry forms are now being accepted at the Fair Office and on-line for more than 100 different categories, including fruits and vegetables, cobblers, harvest pies, scarecrows, dried flowers, jams, honey, cut flowers, produce characters, and birdhouses. There’s even a garden photo contest. So many fun categories to choose from!
There’s also a special division for youth and teens, which includes categories like decoupage, Halloween masks, painted pumpkins, poetry, table settings, and wreaths.
Exhibitors must either submit paper entry forms at the Fair office or enter online at www.NevadaCountyFair.com. There is no entry fee for those who enter an exhibit in the Harvest Fair, and exhibitors have the opportunity to win a ribbon and a little bit of cash.
Complete descriptions of all Harvest Fair divisions and categories are available online at Nevada County Fair Website, at the Fair’s Office on McCourtney Road, or by calling the Fairgrounds Office at (530) 273-6217.
The Draft Horse Classic and Harvest Fair runs September 24 – 27 at the Nevada County Fairgrounds. There are six performances featuring the magnificent Draft Horses – Thursday and Friday at 6:30 pm, Saturday at 10 am and 6:30 pm, and Sunday at 10 am and 4 pm.
In addition to the Draft Horse performances, the Harvest Fair is bustling with activities during the four-day event. Live entertainment, Art at the Classic, Treat Street goodies, a Dutch oven cook-off, a clogging jamboree, a lumberjack show, a live shoeing competition, special exhibits, and visits to the barns and breed pavilion make for a family fun day at the Harvest Fair.
For Draft Horse performance tickets or information about entering a Harvest Fair exhibit, call the Fair Office at (530) 273-6217.
The Dutch Flat Community Center will hold its’ Annual White Elephant Sale
and Silent Auction on Saturday, September 5th from 9am-2pm and
September 6th, 10am to 2pm.
The Center is located at 933 Stockton Avenue in downtown Dutch Flat.
The Annual White Elephant Sale provides a major contribution of funding for
the restoration and maintenance of the Dutch Flat Community Center which
was originally the Dutch Flat Grammar School. The town of Dutch Flat is
registered historical landmark #397. Local legend has it that the log cabin
founders Charles and Joseph Dornbach built in 1851 was on a flat piece of
ground which is now part of the school grounds.
In 1859, Joseph Dornbach sold a parcel to the Trustees of Common Schools
for the Third District of the Fourth Township of Placer County. In 1860,
when the town had the largest voting population in Placer County, a single
story school was built and later replaced by a two story structure in 1875.
A fire destroyed the school on July 15,1898 and later rebuilt as a two story
building similar in appearance to the 1875 school. The new school was
dedicated on December 23, 1898
By 1962 enrollment was down to 18 students and only two students graduated from the school. In that same year the Dutch Flat and Alta School Districts consolidated and all students started to attend the school in Alta.
The building is now most often called the Community Club or the Community
Center, but it is and always will be the Dutch Flat Grammar School. It is one of the most distinguished and historically significant buildings in the area and the center of much civic and community events.
Many residents of the area contribute to the event by donating items,
volunteering and shopping at the event. Laura Resendez, coordinator of the
sale and resident for over 17 years, commented, “I love to gather items folks no longer want or need and help them find new homes. During the sale many shoppers share ideas of what they are going to do with their new treasures.
Many of our volunteers have been helping with this event for over 10 years.”
Alta resident, Heidi Johnson says, “I love to cook so I provide baked goods and sandwiches for both the other volunteers and busy shoppers.
The building is such an asset to the community and there are more improvements needed to encourage people to use it. If you like antiquing and finding interesting treasures, it is an event you don’t want to miss.”
Donations are still being accepted. Please contact Laura Resendez 530-305-3881 or visit Alta’s Website for more information.
Existing, single-family home sales increased 12 percent in July to a seasonally adjusted rate of 553,910 on an annualized basis.
The statewide median price of an existing single-family home increased 3.9 percent in July to
$285,480, compared with June 2009.
Unsold Inventory Index fell to 3.9 months in July, compared with 6.9 months in July 2008.
Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“The federal tax credit for first-time buyers played a critical role in the purchase decision of many buyers,” said C.A.R. President James Liptak. “Nearly 40 percent of first-time buyers said they would not have purchased a home if the tax credit was not offered.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline, and includes all buyers, not just first-timers.”
Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 12 percent from the revised 494,390 sales pace recorded in July 2008. Sales in July 2009 increased 8.1 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during July 2009 was $285,480, a 19.6 percent decrease from the revised $355,000 median for July 2008, C.A.R. reported. The July 2009 median price rose 3.9 percent compared with June’s $274,740 median price.
“July marked the fifth consecutive month of month-to-month increases in the median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This was the largest increase on record for the month of July based on statistics dating back to 1979. The yearly decline in July also was the smallest in the past 19 months. Source C.A.R.
