Ivan and Delores Eichers are among thousands of people who fall each year for offers that promise to help them avoid foreclosure but that leave them with none of the equity they had built up in their property. Their situation matches one of the three common models of foreclosure fraud the National Consumer Law Center described in a report on the problem. The number of foreclosures nationwide soared 42 percent in 2006 to 1.26 million, said RealtyTrac, a company that tracks foreclosures. That creates opportunities for more foreclosure fraud, although the exact number of cases is hard to determine.

The Eichers thought they were taking out a $1,700 loan to help them pay the roughly $4,700 in back payments they owed on their mortgage. They learned too late they had signed their house over to Mid-America Financial Investment Corp. and agreed to lease their home from Mid-America when they accepted that loan. Although the couple no longer owned their home, the mortgage remained in their names, so they made their $554 payments on the loan through Mid-America, along with monthly fees of at least $100. A second scheme described in the report involves consultants charging high fees to help homeowners out of trouble but never delivering the promised services. A third involves an agreement where a homeowner knowingly signs over his or her home and agrees to buy it back over time, but the terms of the agreement make it nearly impossible for the homeowner to succeed. (more…)

search for : foreclosure fraud, National Consumer Law Center

We North Carolinians find ourselves in 2007 standing on the brink of a deep but narrow canyon. Across it lies a greener and happier future, secured by substantial new investments in land and water conservation. We’re tempted to borrow the money we need and leap across the gap — but looking over the edge we see far below the dangerous rocks of a bond rating decline. To the left of us there’s the sturdy bridge of dedicated conservation funding, spanning the canyon. But the bridge is guarded by twin giants Realtus and Developus. Behind us we hear the din of the steadily advancing armies of Overdevelopment, so we know there is no time to lose.

Last year the Governor’s Office opposed putting a conservation bond referendum on the ballot, citing fears of a costly decline in the state’s excellent bond rating. The obvious work-around is a dedicated funding source that could guarantee repayment of the bonds over time, but development interests have often managed to block the most reasonable funding mechanisms for conservation. For example, conservationists would love to simply raise the real estate transfer tax, currently set at a modest $1 for every $500 in property value. Real estate agents, however, oppose raising the transfer tax, which they argue is discriminatory in its focus on just one industry, given the fact that land conservation benefits us all. (more…)

search for : North Carolinian, conservation funding, conservation bond referendum

What key characteristics of a home’s location — not the features inside — push sales values up or down most dramatically? Just about anybody who’s bought real estate or is in the business knows the mantra “location, location, location,” and has opinions on what matters most. But new research by the National Association of Home Builders uses sophisticated statistical analysis techniques on a massive housing database to come up with a definitive list of the top locational characteristics that raise and depress property values the most.

The “standard” home for the purposes of the analysis is defined as being constructed after 2003, with 1,850 square feet of living space, two full baths, three bedrooms, dining room, kitchen and a “miscellaneous” room, a basement, garage, fireplace, and “no special (locational) amenity or disamenity.” The starting valuation of the “standard” or baseline new house ranged from $163,540 in a non-metropolitan area in the Midwest to $589,551 in a large southern California metro area. The study then examines what happens to that valuation when positive and negative locational characteristics are introduced into the equation. For example, in a Midwest suburb the baseline house with no special locational amenity would be valued for sale at $212,137. Put that same house in a location that has parkland or open spaces nearby and the value rises to $215,510. Put the house in a gated community and the value rises to $225,772. Put it in an area that is convenient to public transportation and the value jumps to $238,340. And locate it on waterfront and you get the biggest positive impact of all — its soars in value to $303,760. (more…)

search for : location, location, location

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to home ownership. It is a financial implement that must be managed, just like any other financial investment. “Think of it as part of your financial tool kit,” suggests Susan Martin, a vice president and spokesperson for Countrywide Home Loans, one of the country’s largest lenders. “And it’s a dynamic financial tool, not a static one.” Years ago, people took out 30-year loans, threw their mortgage papers in the drawer and didn’t take them out again until 360 payments later. Then they held mortgage-burning parties.

If rates have risen, and it looks as if yours is going to reset higher, it also might be time to refinance into a loan that’s more stable, or maybe another ARM with a lower start rate. Another advantage of today’s multiple-choice mortgage market is that you can match your loan to significant life events, not just changes in interest rates. If your spouse decides to give up his or her job to stay home with the baby, maybe you can trade in your current mortgage for one with payments that more closely match your reduced income. If you just took a new job that pays significantly more, perhaps a new, shorter-term loan with larger payments is now in order. Maybe a loved one has had a major illness; it’s time for Junior to go to college; or an investment opportunity presents itself. All of these are personal events that have a significant effect on your bottom line, and a new mortgage might be something to consider. (more…)

search for : mortgage, home ownership, 30-year loan

Do you have any ideas on how to clean my Cadet baseboard heaters? When I first turn them on for the winter, I get a black film on the wall above the heater. What should I do?

What’s probably happening is that during the time the heater is off, dust or other material is accumulating inside the unit. When the heater is turned on in winter, this material burns off and streaks the wall.

First of all, try to minimize the dust buildup. This might be done by rearranging furniture, increasing fresh air in the room, or increasing air flow in front of the heaters. Then, prior to starting the heater in the winter, make sure it’s clean. For their baseboard heaters, Cadet recommends that you remove the front cover, and use a vacuum to clean out the inside of the heater before starting it for the season. Be sure the power is off before removing the front cover, and be careful not to damage the aluminum fins inside the heater. (more…)

It looks like 2007 is going to be a very hot year for foreclosure sales, according to RealtyTrac.com, creator of the largest U.S.-based foreclosure database. The latest numbers released this week show that while foreclosures filed in December 2006 were 9 percent less than November, it was still up 35 percent December year over year. “New foreclosure filings surpassed the 100,000 level for the fifth straight month, something we’ve not seen since we began issuing our foreclosure market report in January 2005,” said James J. Saccacio, chief executive officer of RealtyTrac, in an online press release.

For many an investor-wannabe, I can hear the sound of chops being licked in the background. The real estate business has been a great creator of wealth for many every-day people, but it’s also created the demise of many a millionaire. If you’re looking to move toward investing in the foreclosure world, it goes without saying that you have some homework in front of you before collecting your rental checks or flipping the property. When an investor is buying what I would call a retail investment property, the property is usually in good condition, the seller actually wants to sell the house and all parties will probably use traditional contracts from established sources, such as the local Realtor association. Such a situation creates a stable environment in which to buy a house that is going to continue increasing in value and where you may already have a tenant in the house. (more…)

search for : foreclosure sales, foreclosure filings, flipping the property

According to the Joint Center for Housing Studies at Harvard, Americans spent $168.7 billion on home improvements and repairs in 2006, 1.5 percent more than in 2005. From the comments of Joint Center officials last week, the increase was disappointing but understandable. The slumping for-sale market in many areas of the country has led many homeowners to delay or pass on major home-improvements, ending the double digit, quarter-to-quarter increases that the remodeling industry experienced over much of the last five years.

The bulk of the demand for remodeling jobs continued to come from the baby boom generation, according to the NAHB research, which was conducted in conjunction with the quarterly surveying used to produce the NAHB’s Remodeling Market Index. However, work requests from 30- to 40-year-old members of Generation X are on the rise, and they are turning out to be bigger spenders than the generation preceding them, the NAHB data show. Rising energy prices last year appeared to have little impact on the demand for jobs related to improving residential energy efficiency, and a majority of remodelers were involved in making modifications for aging-in-place, although they said that most consumers aren’t familiar with the concept. My feeling is that the NAHB should hold a contest to come up with a better description than aging in place, which better describes how I feel when a late train makes me miss the start of an important meeting. (more…)

search for : home improvements, remodeling

Looking at the costs of re-tenanting should motivate you to try to keep tenants. In office and commercial buildings you have vacancy costs plus leasing commissions, tenant improvements as well as the challenges of the construction coordination that will affect other tenants. We know that you will not be able to keep every tenant. Some tenants don’t pay their rent or pay their rent late. Some tenants are just not the right fit. Just this last month we asked a tenant to move from a building because their clients were harassing other tenants in a building. But the landlord’s objective needs to be to keep every tenant they can.

This leads us to the concept of tenant mix. Many years ago before I knew better, I leased a large space to an office tenant in an industrial park. My client’s were very happy, the rent was low, and the location was great. Even the parking was good. They were happy until the new neighbor moved in. The new neighbor was a metal stamping operation. Their equipment went bang-bang all day long. My client’s employees were very frustrated. The walls and the floors were shaking with every stamp. Those people located within 20 feet of the wall they shared could not make phone calls anymore. We learned a big lesson then about how to combine tenants with similar uses, to keep them all happy. (more…)

search for : tenant improvements, rent, landlord

Indicators continue to suggest, instead of buying a move-up, it’s not a bad time to turn your existing home into one — before the spring thaw awakens hibernating homeowners with the same idea. Home improvement demand remains soft and thanks to woes in the new home market, material prices are as low as they’ve been in years, and the building industry is flush with contractors able to do the work.

Even if home prices don’t stabilize, as others expect, at least in some regions, home improvements are a way to shore up the value of your home. According to Remodel Magazine, on average, most common remodeling jobs return at least 70 percent of the cost of the work to the value of the home. Cheaper materials. Wood products industry information source Random Lengths said it’s “Framing Lumber Composite Price” (a weighted average of 15 key framing lumber items’ prices listed in dollars per thousand board feet) was $288 in December 2006, the lowest December price since 2002 when the figure was $276. Another measure, Random Lengths’ “Structural Panel Composite Price” (a weighted average of 11 key panel items’ prices in dollars per thousand square feet) came in at $266 in December, also the lowest level for that measure since December 2002. (more…)

search for : Home improvement, home improvements, remodeling