Tag Archives: Real Estate

Business, Real Estate

Economists Optimistic That Market Is Upward Bound

economic-upturn

Well, you can get a room full of economists and get a room full of different opinions. But according to USA Today it seems that two-thirds of the economists agree that we may have hit bottom. Here’s the article, let’s let a little sunshine in.

“Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out.

Both housing and automotive markets “have the potential to generate some quite large percentage increases,” says Bill Cheney, chief economist at MFC Global Investment.

Overall, economists say unemployment won’t peak until the first half of next year and credit markets will remain tight.

“I think (the recovery) is going to be anemic,” says Allen Sinai, chief economist at Decision Economics. “I don’t think consumers have the wherewithal to buy a lot of cars and a lot of houses.”

For full story, click here: USA Today, Paul Davidson; Barbara Hansen

Real Estate

Craigslist, A New Twist on an Old Real Estate Scam

house-for-rent

In a different twist on an old scam, real estate scammers are using new tricks to try to pull a fast one on people searching for a place to rent.

Although everyone thinks they would never fall for a scam, it can happen to anyone. Recently, the people doing the tricking are getting more creative.

You may know that agents list properties for sale on Craigslist.

Instead of just trying to get you to send money in exchange for a key, sight unseen, now scammers are actually putting victims in touch with legitimate real estate agents.

The individual is being told, call the agent, they’ll show you the property, but don’t say anything about renting because I’m the owner and I don’t want them to know I’m going to take the listing away from them.

Once the potential renter has fallen in love with the house, they’re told to send the alleged owner a security deposit. With one pen stroke, the scammer has tricked both the buyer and agent.

Now that they’re more aware of the issues, most agents are being pro-active and trying to stop any fake rentals before things go too far.

Your best protection is to ask the agent if the owner wants to rent the house. Most listing agreements cannot be cancelled by the owner unless the real estate agent agrees to the cancellation.

The best advice, however, is to work with someone you trust, and remember if it seems too good to be true, it probably is.

It is important to note that there are legitimate listings on Craigslist. The site has become a popular place for agents to post listings. If you are searching on Craigslist, just remember to use caution and do your research if you find something that interests you.

Real Estate

Property Tax Bill Too High? Appeal It

scales-money-house

Do you feel that your property tax bill is too high? Was it raised recently in a declining real estate market? You do have the right of appeal. Listed below are some of the information that you would need to appeal your property tax:

According to the Wall Street Journal, M.P. McQueen (07/16/09)

“The going rate for a property tax consultant, who makes the pitch to the appeals board on behalf of the home owner, is often 25 percent to 50 percent of the amount saved in the first year.

Winning an appeal requires persuading an assessor or appeals board that the current assessment is inaccurate or outdated. Often the window for appeal is very small, so it pays to have key information gathered and ready.

The National Taxpayers Union offers these tips for filing an appeal:

• Check the assessors’ information on file for accuracy, including lot number, zoning category, sales records, land value and dimensions, and significant features.

• Make sure that defects like a leaky basement that could lower the value of the property are on record.

• Provide three to five comparables that prove the point that the property is over-assessed.

• Get a full appraisal if the information on file appears to be hopelessly incorrect.”

Let me know if I can help you in appealing your property tax bill, why pay more than you have too?

Real Estate

How do I Protect a Vacant Home That I’m Trying to Sell?

Vacant home-kitchen has been destroyed
Vacant home-kitchen has been destroyed

To make a long story short, if possible don’t leave your home vacant if you are trying to sell it. However, if you do have to vacate your home, here are some guidelines that will help you.

To begin with, if you leave your home vacant for thirty days, your homeowner’s insurance policy may expire or be cancelled. Check with your insurance agent to protect yourself. You know how Insurance companies are, they are notorious in finding ways not to pay on your insurance policy. Remember, it could be considered fraud if you leave your home vacant for a long period of time and then say you have occupied it if something happened to your home in your absence

• Have your real estate agent (like myself) advise you on how to make your house look occupied and have him check your house on a regular basis.

• Again if at all possible, don’t move out until you’ve sold the home. If you are one of a couple, consider staying behind, or living there occasionally until the home is sold.

• You can rent out the home. Not only will the home be lived in, the rent will help cover your carrying costs. You may still have to change your homeowners’ insurance policy to reflect the property’s new rental status — say to reduce your contents coverage — but it’ll be cheaper than vacant home insurance.. Of course, renting carries its own problems, making sure that you get a good tenant to start with. Then there is a law which states that you have to give the tenant 24 hours notice before you can show the home. This could result in a lost sale. Otherwise, hire a house-sitter or let someone you trust live there until it’s sold.

•If you must move out make the home look lived in. No matter what you do, you still have to keep the home maintained by cleaning the yard and gutters, trimming trees, clearing the gutters, checking for leaks, shoveling the sidewalks and driveway, and winterizing or summer-izing as necessary.

• A good way to protect your home if you must vacate, is to install a home security system that is monitored. Our local Beam Center provides excellent service and I have used their services for years.

• Give the lived-in look some redundancy. Have an acquaintance bring in mail (Security experts say to stop mail and other deliveries when you are away). Ask your neighbors to keep an eye on your home and to report any suspicious activities to the police. Ask a neighbor to park their car in the driveway. Install timers on lights and leave window coverings and some furniture in the home.

Real Estate

Careful of Revese Mortgage Scams

Robert C. Weaver Federal Building HUD Headquarters
Robert C. Weaver Federal Building HUD Headquarters

The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge consumers, especially senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM), have increased more than 1,300 percent between 1999 and 2008, creating significant opportunities for fraud perpetrators.

Reverse mortgage scams are engineered by unscrupulous professionals in a multitude of real estate, financial services, and related entities to steal the equity from the property of unsuspecting senior citizens aged 62 or older or to use these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property.

In many of the reported scams, victim seniors are offered free homes, investment opportunities, and foreclosure or refinance assistance; they are also used as straw buyers in property flipping scams.

Seniors are frequently targeted for this fraud through local churches, investment seminars, and television, radio, billboard, and mailer advertisements.

A legitimate HECM loan product is insured by the Federal Housing Authority (FHA). It enables eligible homeowners to access the equity in their homes by providing funds without incurring a monthly payment. Eligible borrowers must be 62 years or older who occupy their property as their primary residence and who own their property or have a small mortgage balance. See the FBI/HUD Intelligence Bulletin for specific details on HECMs as well as other foreclosure rescue and investment schemes.

Seniors should consider the following:

* Do not respond to unsolicited advertisements.

* Be suspicious of anyone claiming that you can own a home with no down payment.

* Do not sign anything that you do not fully understand.

* Do not accept payment from individuals for a home you did not purchase.

* Seek out your own reverse mortgage counselor.

If you are a victim of this type of fraud and want to file a complaint, please submit information through our electronic tip line or through your local FBI office. You may also file a complaint with HUD-OIG at HUD Complaints or by calling HUD’s Hotline at 1-800-347-3735.

Source: PopDeCay

Real Estate

Another Real Estate Scam, Call Me on My Foreign Mobile Phone

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mobile-phone-scam

One of the scam’s that has been going on since at least 2007 is to send an e-mail to you stating they are interested in viewing one of your properties. The e-mails are usually sent to someone who is renting property and Realtors® seem to be a prime target.

The e-mail goes something like this:

“I am interested in viewing one of your properties, could you please call me on my foreign mobile +882 135 502 99 to setup a time. As I am travelling at the moment I am unable to pickup emails regularly so please call.
Kind regards,
Liz Casey
———
Mobile: +882 135 502 99 (of course do not call!)
Email: lizcasey@zapak.com”

~~~~~~~~~~
It’s obvious that if you receive an e-mail like this that it’s a scam. There is no mention of what property they are referring to, or if there is, the next thing they will do to get your money is send you a bogus check as a deposit to hold the property, most often in the form of a certified check. Next, they will e-mail you and say they have overpaid you, or they decided they did not want the property and request a refund.

I Googled this scam and came up with someone who had experience with this and here is what they wrote:

“They will eventually get around to talking you into discontinuing the ad then they will send a counterfeit check. Next comes a request to refund some of the money from the bogus check claiming they overpaid. It’s amazing that folk’s fall for these scams. We played one along and got a $25.00 reward for turning the check over to the bank. If you play along with a scammer and receive a check. don’t handle it, the FBI may want to lift prints from it.”

I’m not sure the FBI is interested at all. The last time I tried to report a scam they were not interested and really did not even want to talk about it..
.

Real Estate

Michael Jackson’s Neverland Home has a Buyer

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Michael Jackson's Neverland
Michael Jackson's Neverland

LONDON – French fashion tycoon Christian Audigier is set to buy Michael Jackson’s Neverland home.

“I have decided to buy that house,” the Mirror quoted him as telling French TV.

The designer is also planning to build a theme complex dedicated to the icon similar to Elvis Presley’s Graceland.

He may also offer online tours for fans to the ranch that Jackson turned into a personal theme park.

Colony Capital who had purchased the California ranch in 2008 for 20million-pound is keen to sell it after the legend’s demise.

Neverland is now worth an estimated $97,150,000.

Real Estate

Fannie Mae New Loan-to-Value Ceiling for Home Affordable Refinance Program

fannie-mae-building
Fannie Mae (FNM/NYSE) announced today that the company is providing information to servicers regarding changes to the Home Affordable Refinance Program (HARP) that permits refinancing of existing Fannie Mae loans with loan-to-value (LTV) ratios up to 125 percent. The loans will be eligible for delivery on or after September 1, 2009.

“This step aims to reach even more borrowers who would benefit from a lower payment,” said Michael J. Williams, President and Chief Executive Officer. “Many borrowers in good standing have been shut out from the benefits of refinancing due to significant declines in property values across the country. By broadening the scope of the initiative, more borrowers will experience savings on their monthly mortgage payments and have a better chance of sustaining homeownership over the long term.”

Previously, HARP allowed for refinancing of Fannie Mae loans with LTVs up to 105 percent. With the expansion, loans with LTVs above 105 percent and up to 125 percent will be eligible for refinancing through the company’s Refi Plus™ manual underwriting option. For loans with LTVs above 105 percent, borrowers must refinance through their existing servicer and the new loans must be fully amortizing fixed-rate mortgages with terms greater than 15 years up to 30 years.

In conjunction with the LTV eligibility expansion, Fannie Mae will offer a special .50 percent reduction in the loan-level price adjustment charged for loans with LTVs above 105 percent and loan terms of 20 and 25 years. The reduction is intended to incent borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage.

HARP is part of the Administration’s Making Home Affordable plan aimed at stabilizing the housing market, helping Americans reduce their mortgage payments to more affordable levels, and preventing avoidable foreclosures. For more information, visit Making Home Affordable.gov

Real Estate

Value of Home Goes Down, Home Owners Walk Away

foreclosed-home

A study of the Massachusetts housing market by researchers from Northwestern University and the University of Chicago concludes that a home owner’s propensity to default increases the further their loan goes under water.

The study found that home owners begin to walk away after declines of 15 percent or more. More than 17 percent of households would default, even if they can afford to pay their mortgage, when the equity shortfall reaches 50 percent of the value of the house.

The researchers found:
• People under the age of 35 and over the age of 65 are less likely to say it is morally wrong to default compared to middle-aged respondents.

• People with a higher education (8 percentage points) and African-Americans (14 percentage points) are less likely to think it is morally wrong to default, whereas respondents with a higher income are more likely to think it is morally wrong.

• Default is considered less morally wrong in the Northeast (6 percentage points) and West (8 1/2 percentage points).

• There was little difference in the moral view of strategic default among Republicans and Democrats, but independents are less likely to say defaulting is immoral.

• Respondents who supported government intervention to help homeowners were 12 percentage points less likely to say strategic default is immoral.

So what do you think, is it OK to walk away if you are still able to make your monthly payments on your mortgage?

Real Estate

FTC Cracks Down on Real Estate Con-Artists

mouse-scammer

I was wondering when the Fed’s were going to crack down on con artists which advertise get rich quick schemes in real estate. The con artists offer to make you rich by using their “proven techniques in real estate”

These con artists also offer help on repairing their credit, landing new jobs, starting lucrative work-at-home businesses and obtaining government money to pay off bills. Surging like the unemployment rate, scams, touted on Web sites and infomercials, have bilked consumers out of hundreds of millions of dollars, according to the Federal Trade Commission.

Last Wednesday the FTC, working with local authorities across the country struck back and filed criminal charges against many of the scammers.

According to the Chicago Tribune

“The (FTC) announced a series of civil and criminal charges against alleged con artists who have preyed on economic anxiety to lure consumers into making upfront payments for services that either fall far short of the promises or never materialize.

“To con artists, today’s challenging economy presents an opportunity to exploit consumers’ fears and bilk them out of money,” said David Vladeck, director of the Federal Trade Commission’s Bureau of Consumer Protection.

Vladeck said that more than 100 cases have been filed nationwide this year as part of Operation Short Change, a task force consisting of the FTC, the Justice Department and officials in 13 states and the District of Columbia. The cases included eight filed Wednesday by the FTC.

One of the new cases alleged that five California companies bilked hundreds of thousands of consumers nationally out of about $300 million by offering fraudulent programs related to real estate or online businesses.

The companies — John Beck’s Amazing Profits, John Alexander LLC, Jeff Paul LLC, Mentoring of America and Family Products — and five people who founded or run them were accused of violating federal laws related to telemarketing and consumer fraud.

The FTC accuses the companies of making “false and unsubstantiated claims about potential earnings” customers could make by following their advice in books, DVDs and CDs titled “John Beck’s Free & Clear Real Estate System,” “John Alexander’s Real Estate Riches in 14 Days” and “Jeff Paul’s Shortcuts to Internet Millions,” which sold for $39.95 each.

People who purchased the programs unknowingly were signed up for additional monthly charges of $39.95. Messages left with the companies were not returned Wednesday.”

I did a Google search and John Beck’s site is still up and running, ready to take your money and help him get rich.