The Real Estate Deal - Lawyers - whose side are they on anyway?

I find myself in the situation of really wanting to rant but I will try and make this educational instead...

We all know that the Real Estate transaction or "deal" is a process that involves a lot of characters - as in any aspect of life, you have the good, the bad and the ugly.

There are many things that can make a deal go sour. Maybe the buyer changes their mind...(hey no crime there, it IS a big investment not just a pair of shoes!)

But what I want to talk about are the reasons behind that phenomena.

There are valid concerns like, "hey I didn't think this through and I really don't want to be an owner, not yet" or "hey I might be losing my job in the next few months not a good time to get into this kind of thing" or "you know what I love that house but I loved the one we saw before it even more". These are good and perfect reasons to back out.

One reason a deal can fall through that has nothing to do with the buyer's frame of mind is the financing...how many I have seen cry in the last stages of the process just before closing where it turns out that preapproval letter was really JUST a piece of paper and not worth more than what it was written on! The underwriters at the last stage decide to simply deny the mortgage approval due to this, that or the other. For that I recommend to everyone don't just go to ANY lender! Trust your Realtor as they KNOW what they are talking about when they tell you go with so and so...and more importantly, when in doubt, go to a DIRECT LENDER!

Another thing that has been a big pain in the rear for everyone has been this totally inane and nonsensical and...(ok ok I know you get the point) fact that banks are using appraisers based on a roll call method, is the best way I can explain it.

Hey I understand appraisers need to work and it's not fair for some that don't have enough work and others have more...but REALLY...to just call in an appraiser from the outskirts of LI to appraise a house in the BRONX when they have no clue as to the market is downright ridiculous! They have been known to come out with numbers that are way above or below even in the 100's of thousands, market value for the given area! Needless to say that creates a real issue as it messes up the mortgage approval process...again...in the latter stages when the hopeful buyer is already thinking he has it all planned out...where the bed will go..where the TV will have center stage etc!

The FINAL and most deadly thing in my book is the real estate lawyer. Before I go on I want to offer my SINCERE apologies to the absolutely awesome ones out there and believe me if I do this it's because I would love nothing more than to start a movement that will slowly weed out the ones that give them a bad name!

Why would I make such a preposterous claim? Deadly? YES! Deadly to a deal...

Aren't lawyers supposed to be working for their client?
Maybe if they kill the deal it's BETTER for the client, after all the real estate people are vultures that try and sell people whatever they can just to make a buck right?

If it were not for the "advocate" that works on behalf of the buyer they would be in over their head! Sound familiar?

Yes...in an ideal world the lawyer is truly the "advocate" of their client and is there to protect their interests. By the way, a buyer's agent on the realtor side has that exact same fiduciary responsibility and owes that same alliegence to their buyer to work in THEIR best interest. But I digress...

When that trust is broken and the client is not even aware of it, boy that gets my goat to no end!

These are some examples JUST in my last few deals...we're not talking mass studies here...but I'll bet many agents can come on here and add their experiences into the mix and this could turn out to be ONE loooong blog!

I am on the selling side and buyer came to me direct, so no agent on their side. That means I am the only go-between in this transaction.
~ Buyer calls me up constantly that seller is not fast enough and getting back to their lawyer with info...meanwhile buyer's lawyer has not contacted seller's lawyer even ONCE. Rather the seller's lawyer has left 3 messages when I was in THEIR office so I saw it with my own eyes and emailed them but never heard back from them. The buyer's lawyer has the audacity to claim that he has tried to call the seller's lawyer and is not hearing back! Needless to say...this buyer adored the house! But after 2-3 weeks of this back and forth their new baby comes into the world and now mother and father really does not feel able to go through the whole buying a house process especially with constant complications because they believe their own laywer and in the end are now still paying rent and waiting till the baby is at least sleeping nights before they start the process. In the meantime that house is now under contract to someone else.

I am on the buyer's side in this one.
~ Buyer is extremely savvy, matter of fact has done SO much homework and is SO in the know about the market that I am convincing her to get her license so that I can add her to my team! She has decided on a gorgeous 2 bedroom condo that is actually a great deal and she knows it. She decides to go with a lawyer referred by a family member. So far so good right? Here it gets really good! Instead of giving her advice on the terms of the contract (which we don't even have yet) and helping her make sure that all the terms are in her favor...he starts a really off tangent conversation about how this place is NOT for her. That its above market value for the area (but he does not prove he has any knowledge of the area nor does he have any comps to prove his point, better yet does not even KNOW what place she is buying just a general idea ). That she should wait even another year to find a place (never mind that she will miss out on the 8k the govt is offering her if she buys this year) and that she is better off just renting the rest of the year (say WHAT?) and here's where it gets REALLY good...casually..."You know...I have a really good agent and he has a condo up in another area of the Bronx that is a way better deal!"...aha...so here is the crux of the matter then...was all of that just to steer her in the direction of the other agent? Hmmm...show of hands...how many feel that Mr.Esquire etc has shown a wonderful set of ethics and is really trustworthy...that he is really going to work in the best interest of the client that will after all be paying his bill? Thankfully...my superstar client is a smart cookie and KNOWS this fella is not working with a full deck or at least not showing half of it.

Do you know how many more I can add to this? I can...but I won't...why?...because it will start to get redundant.

I will close with this...buyers PLEASE for the love of money...and house and everything in between...make SURE you use a lawyer that has references galore! Ask your lawyer for a few references too...real clients that have bought real houses...and FINALLY...make sure it is a lawyer that does at least 90% REAL ESTATE! Most of the time people don't realize their laywer probably does one or 10 deals a year and the rest of their work practice involves other forms of law. This is why you don't hear back from your lawyer in days and why they cover their tracks with itsy bitsy lies like blaming the other side for not being on the ball...

Bottom line is...with any kind of transaction in real estate...do your homework! Choose your professionals because it will mean the world to you in the purchase of your new home!

Choosing The Right Career Path in Real Estate

So I just created this little postcard that I am going to give to every real estate professional I meet!

Since I can help anyone in the United States and place them in an Exit Office that is conveniently close to them this opens up a lot of opportunity help any and all that want to succeed in Real Estate. I've helped people set up their resume and helped people find jobs in every field as a hobby all my life...now I can focus on the real estate side and do what I love to do...help people and at the same time reap the benefits of my hard labor as well. The best of both worlds I tell ya!

Bronx Homes For Sale

So, I have been very busy with the transition from one Realty to another. Have to say, I'm very happy at Exit Realty Van Zandt! Susan is really awesome, a great manager, and mentor - the rest of the crowd is cool too.

I have also recently joined forces with fellow Van Zandt, real estate/mortgage broker Mike Burgos and between the two of us, we are keeping busy with new listings and buyers and all that good stuff.

I am the type of person that not only gets into her work but associates myself so closely with it that I AM it for the moment. What do I mean by that? When I am taking a picture of the new house we are listing, I am the proud mama of the house, taking pics of "my new baby". When I am helping out a buyer in terms of finding them a home (be it an Art Deco, Pre-War coop in Riverdale or on the Grand Concourse or a home in Indian Village or Country Club area of the Bronx) I get into the moment and empathize with them to the point that I become one with the buyer mentally and see what they see and love what they love and hate what they hate in the options I show them...until I find them that PERFECT nook they are in love with and can't wait to call home. Susan says I am MADE for Real Estate...I say "Ya think?!" ;o)~

So, here are my new babies: (CLICK on each to check them out)

2191 Boston Road/Pelham Parkway Bronx NY 10462

3508 Boller Ave Bronx NY 10466

3879 Boston Rd Bronx NY 10466

256 Calhoun Ave Bronx NY 10465

217 Longstreet Ave Bronx NY 10465

I am thinking of doing some tours soon...taking a few listings maybe 8 to 12 of them and putting together a bus tour and having some people come on board to take a look...it's fun stuff!

P.S. Yes I am addicted to those Reality Real Estate shows, including 3Deals On The Bus from TLC and all those shows on the HGTV Channel, dare you to watch and not find it interesting!

BEWARE of Foreclosure websites!

There are I'm sure legit websites that DO offer real, and actual foreclosures on their website, and ask you to join them in order to access those listings. I saw a recent post from one agent in NJ however, that I feel is a good idea to post as a little warning. Yes, many people want in on those great deals right now, with the market in the dumps and foreclosures that abound with seemingly no end...before you spend money on a website because you think it's all the same, and there's no need to contact a real estate professional...Read On!

John from NJ wrote:

I had a client call me regarding one of my listings.. she was very upset that her home was showing up on http://www.foreclosurestore.com .(the listed home is not in foreclosure) As it turns out, her listing as well as all of my listings and all of my MLS office listings show up on the initial page of this horrible site as a foreclosure!

But, in order to get information, you need to sign up with a credit card. After 7 days they charge you $79.99 per month to search the service.. after you give them the card, ( per the one nasty, brain dead "customer service rep ) the home will show "Not in Foreclosure" listed with a Realtor.

So basically, this company is scamming all of us.. The unsuspecting home buyers looking for a bargain and realtors by taking our listings onto their site to use to suck people into their website.

So...browse with care...and guard that credit card until you've done some reasearch on whatever website you are considering to register with.

Experienced and New Licensees - Top of the line Commission Splits!

Is Real Estate YOUR career choice?

Real Estate is a challenging career choice. Many people are afraid to start in the field because of the market, or the fear of not making enough money soon enough to make ends meet. For new licensees this is a REALITY not just a fear. Many new licensees drop out of the field within the first 6 months to 2 years. The school training is just textbook law of agency that you need to know to get your license. It in no way prepares you for your actual day to day salesperson activities.

I remember being in school and hearing all these recruiters and not knowing WHO to go with and WHY one is better than the other...which brings me to this point...

What determines if you will be the next success story or just another failed attempt?

TRAINING and SUPPORT as well as a Commission structure that is in Your Favor! This of course takes into account that you have the work ethic and perseverance as well as people skills that combined with the support and awesome commission splits are ALL you need to make money! Remember, the market can be at the top or at the bottom, there is ALWAYS need of a real estate professional. We make money on every rental and sale - foreclosures included!

Every broker says they offer training...­

But can they truly tell you that you will ONLY be trained by Real Estate Professionals that make 500K per year or more? We can and we DO. We firmly believe the more training we give you - the greater your success - since the backbone of the real estate market is YOU the SALESPERSON - your success equals our success.

Commission Structure

Many agencies start you at 30%AGENT/70%BROKER until you have completed a few transactions - we believe there is no greater motivator than knowing you will keep most of the money you make as soon as you make it!

Here is OUR commission structure:
70% AGENT / 30% BROKER up till 100K (Gross Commission Income) this changes to 90% /10% once you reach 100K (Balance of Year)

PLUS:
10% Residuals - you can make that commission split add up to 100% to 500% to unlimited - this is one thing that REALLY sets us apart - and no it is not magic or too good to be true promises.

PLUS:
No Desk Fees
7% Retirement Residual
5% Beneficiary Residual
401k Plan, Health Insurance Plans - (Coming Soon!)

You deserve to find out how you can join the FASTEST growing franchise in Real Estate in the US. Whether you are a new licensee or an accomplished salesperson, you need to affiliate yourself with a brokerage firm that will put the money in YOUR pocket and provide a warm, positive atmosphere that is conducive to everyone's success!

Work from Home or in the Office...you are the one that decides your hours and flexibility! I can help you find an office near you, in ANY state of the US...we have a big network with over 50,000 offices.

CALL or Email me Today!

Laura Lazar Kearns
lauranycrealtor@gmail.com
646-498-9302

New Year - New Market?

Not yet...but experts say the housing bottom should be reached anywhere between 3-6 months so that means by July of 2009 we should start to see an upswing...

In the meantime, the mortgage rate is at an all time low for those with excellent credit as low as 4%. I say - take advantage people!

On Sunday January 11th I took a client on the Art Deco Co-op Bronx Tour. It was great to see all the converted buildings from Bedford Park and Mosholu all the way down the Grand Concourse to the 150th street area.

Lo and behold I was not aware that the Daily News would be on board the tour Trolley Bus. As it happens my client is on the board of the Art Deco Society of New York. Once we made that known the Daily News started snapping pictures of us left and right. I'm told the article is supposed to appear in Friday's Daily News. That should be interesting.

The buildings we saw on the tour were:
601 Pelham Parkway
2244 Bronx Park East
340 Mosholu Parkway
2962 Decatur Ave
1855 Grand Concourse
55 E. 190th St.
3201 Grand Concourse
811 Walton Ave

At least 7 of those buildings were the Pre War Art Deco style buildings that my client was interested in viewing so as to see if she can find her one or 2 bedroom apartment with the usual trimmings - roomy, arched doorways, sunken living room, tall ceilings and even carved molding as we saw in some of the apartments.

The beauty of it is, as much as we are all witnesses to the crash of the housing market as it were and prices are apt to reflect that, it is still almost a surprise to see some of these gorgeously detailed and renovated period buildings with apartments starting at $129,000! This is NOT a little "cozy" studio we are talking about either, but a one bedroom apartment over 800sq ft!

If I was not so happy with my own co-op apartment I would be SO tempted to buy one myself! Spread the word - these culture steeped co-ops, real gems in the heart of the Bronx, with a swift painless commute to Manhattan and an added bonus of being practically in the back yard of the Botanical Gardens and Bronx Zoo, are at your fingertips and affordable to boot! In 3 years or so I expect to see them at least double in value.

New Blog...

There are SO many thoughts in my head...on the economy - the stock market, the real estate market, and then there are the thoughts that have nothing to do with any market. These are the random thoughts, poetry, jokes and whatever else comes to mind that I just have to put somewhere for later...hence my new blog...

A WOMAN’S RANDOM THOUGHTS

In the meantime, the one piece of great news on main street -lower mortgage rates- is keeping me nice and busy looking for coops and condos and apartments and houses for those people that have realized this is the time to own a piece of the Big Apple. Will have to take the time and post some more financial tips in a bit.

If I Were a Rich Girl - What building would I buy?

These are the times that will come back to haunt me - there was a time a few years back when I knew I should invest in Real Estate in a REALLY up and coming area and I made up one excuse or another and then kicked myself for years thereafter!

It is now the year 2008, and we are making history. Obama has proved that we are no longer minorities vs. majorities. We are also looking at a market that is highly volatile and can easily slip into a Depression according to some experts while others claim that at least on a local NYC level, we are much more equipped to weather this storm as opposed to the last one due to Giuliani's and Bloomberg's clean up efforts where the crime rate in NY is at a historic low!

I am looking at new listings on the market every day, the ones anyone can see and then there are the insider leads - the quiet sales that come in - and these are the times that I know we ALL wish we had some liquid assets to pour into the market! No, not that market that likes to yo-yo up and down and goes from crash to burn...but the real estate market - it's all about equity folks.

Remember, while the economy can be in a really bad place, people still need a place to live and I don't believe we will see the entire world homeless anytime soon...

Invest for your future or invest for a living - invest on a small scale or invest on a grand scale - regardless of which route you can afford to go it is imperative that people realize that this is where long term financial security lies. You can start by buying an apartment or house as low as $250,000 and a building as high as 70 million and every kind of property inbetween - for everyone there is a piece of the Big Apple waiting to be claimed.

Finally, always be aware that your real estate professional is there to help. If you are not happy with one keep looking until you find the one that will understand your investing needs and help you find the property or properties that will be a perfect addition to your starter or current portfolio. In this market especially, it really may make a big difference to have the real estate professional 100% loyal to you - a Buyer's Agent is definitely recommended.

In New York City it is not as popular as all over the rest of the country but this IS a Buyer's Market so it's a good idea to insist on a Buyer's Agent when you walk in to your local realty.

Aside from matching you with the listings that you can really see yourself appropriating - there are also the many creative financing methods that is a priceless service, as it may mean the difference between walking away from a deal or signing on the dotted line at closing - what with the current situation where getting a mortgagge is something akin to obtaining an artifact of holy grail proportions.

I personally practice Buyer's Brokerage - feel free to contact me if you have any questions, irregardless of whether or not you work with me - I am always happy to help...even if just in the capacity of a sounding board or lending a bit of guidance.

The Credit Doc Is In - Credit Repair - Myth or Reality?

We are playing with a great Buyer's Market right now. We are seeing deals that we have not seen in a very long time especially in what was the seemingly eternal bubble that enveloped the heart of the city - Manhattan.

That said, every day we hear of banks that are either raising their standards so high that even the "good credit" guy can't get a loan, only the lucky few with "excellent credit". Worse yet, other banks are starting to simply refuse no matter what your credit score is. I have to say it's imperative that you know what you can do to take advantage of this awesome chance at getting a piece of the Big Apple and in that spirit, I felt I had to share the article below as soon as I saw it! Having been one of those people that was wronged by an unscrupulous credit card company, over 10 years back, (which has kept my credit score at under 700 over the years, and only NOW started to move up slowly) I can empathize with anyone that has had unjust black marks on their credit, and if this is the way to help it then more power to you...read on!
P.S. Beware that "credit fixes" can also go bad so you really need to be careful on that side too.

Can 'credit docs' cure bad scores?

The credit repair industry is exploding as tighter lending rules prompt many consumers to seek ways to push up their ratings. But beware: Unscrupulous practices are common.
By SmartMoney

Thanks to the credit crunch, lenders only have eyes for borrowers with near-perfect credit -- and that comes as welcome news to Edward Jamison. A credit-repair expert in Los Angeles, Jamison helps improve consumers' credit scores by quickly removing such blemishes as old collection accounts and credit report errors. Needless to say, business is booming. These days, Jamison is focusing on an even more lucrative opportunity: selling startup packages to those who want to become credit repair experts themselves.

His Web-based system automates the entire process, from finding clients to flagging negative information on their credit reports and generating requests that the credit bureaus remove it. Anyone with $15,000 (the cost of the package) and 25 hours of training can enter the field, he says."They can learn everything there is to know about the credit repair business and credit scores and almost be a credit expert in a matter of a week," Jamison says. Started about two years ago, his company, Credit CRM, already has more than 300 affiliates using his system.

As lending requirements tighten, hiring a credit repair expert, or "credit doctor," to help improve your scores in a matter of weeks or months sounds enticing. But consumer advocates such as Ed Mierzwinski, the consumer program director for the U.S. Public Interest Research Group, warn that the industry is rife with shady practices and high fees ranging from several hundred to thousands of dollars.

"Your money will be better spent paying your bills," Mierzwinski says.

Unfounded disputes are a common technique

The industry has a bad reputation, Jamison confirms. He's trying to change that by checking references for anyone interested in becoming an affiliate and even testing his business owners on their credit knowledge before he certifies them. He runs a clean shop and does his best to ensure that his affiliates do as well, he says.
Some credit repair shops, though, use loopholes in consumer-friendly laws in ways that only temporarily boost a person's credit scores. The most common technique is to dispute negative but accurate information on consumers' credit reports. A provision in the Fair Credit Reporting Act allows consumers to challenge and remove anything from their credit report that's incorrect, misleading, outdated or unverifiable, explains John Ulzheimer, the president of Credit.com Educational Services. If a person finds, say, a paid collection account reported as unpaid or a delinquent credit card account that he or she actually paid on time, that person can send a dispute letter to the credit bureaus, which then request that the creditor verify the account. Unless verified as accurate within 30 days, the bureaus have to correct the information on the consumer's credit report.

Many credit repair companies know that by burying the credit reporting agencies with dispute letters, they can remove negative items -- even if they're accurate, Ulzheimer explains.

"If you have a credit report with 15 negative items and send 15 dispute letters, the odds are that some of those 15 letters aren't going to come back -- either the data (are) too old to dig out or the data furnisher's response will get lost in the mail," he explains.

The Credit Data Industry Association, a trade group for the credit bureaus, estimates that roughly one-third of the disputes that the bureaus receive are from credit clinics. "Our members tell us that almost all identified credit repair correspondence concerns adverse but accurate data," said Norm Magnuson, an association spokesman, in a written statement.

But when accurate information is deleted from a consumer's report -- especially if it's an outstanding debt -- there's often a good chance it will be re-reported the following month.

"There's no miracle work," Jamison says, adding that he disputes accounts only if a client says they're not 100% accurate. "If someone has a bunch of unpaid collections or charge-offs, you can get them off, but they're just going to come back on. A lot of companies out there will lie (that it can be done), but that's not the way it goes," Jamison notes.

Because only accounts that are paid off can be permanently removed, he says he turns away consumers who can't pay off their debts. "They're better off trying to get their finances in order and then try to get their stuff settled," he explains.

Mortgage brokers can speed up changes

For those shopping for a loan, there are some perfectly legit ways to improve your credit scores quickly. Though disputing errors with the credit bureaus typically takes about 30 to 60 days to resolve, a mortgage broker can help clean them up in a matter of five to seven days with a service called Rapid ReScore.

At $25 or $30 per credit line per bureau, however, it's a pricey option. (Mortgage brokers aren't allowed to charge clients for this but can pass along the costs in the form of higher fees elsewhere.) To successfully use Rapid ReScore, a borrower needs to submit a letter on the creditor's letterhead that proves his or her claim is correct, explains Juan Boldiszar, a Chicago mortgage broker. "Rapid ReScore really only works for people who have errors on their credit report and the documentation on hand (to prove it)," he notes.

Borrowers who fit that profile, however, can see quick results. Scott Yonehiro, a mortgage planner in Burbank, Calif., has helped improve clients' credit scores by 20 to 30 points in a matter of days. He works with borrowers who want to raise their scores from the 690-to-695 range to above 720 in order to receive better interest rates and pay less in mortgage fees, he notes.

Some mortgage brokers also employ so-called credit simulators that identify specific strategies to boost a client's scores. Justin Lopatin, a mortgage broker with American Street Mortgage in Chicago, uses software from CreditXpert that analyzes credit reports and provides specific solutions. Recently, he helped a borrower increase his scores from 620 to 695 within six weeks by paying three of his credit card balances to below 50% of the available credit limit, opening two new credit cards and clearing up two collections accounts. (The service is free to customers.)

That sounds like a great quick fix, but even consumer advocates such as Ulzheimer question the impact of such strategies in today's ailing lending environment.

"I don't see how that's good for the industry," he says. "If you have a score of 650 and you go through one of these services and are able to jimmy your credit to 710, are you really a 710 -- or 650 with makeup on? And are you really going to behave like a 710 risk-wise? I'd say you're definitely a 650 with some makeup on."

(Fannie Mae, which sets credit score criteria for mortgages that it purchases from lenders, declined to comment for this story. Freddie Mac did not return our calls.)

Of course, the best way to improve your scores is to learn the rules of good credit and stick to them for the long run. "Without proper counseling, as far as taking financial responsibility, credit repair is just a Band-Aid," says Brian Smith, a mortgage banker in Seattle.

Credit repair warning signs

Not all credit repair companies are unscrupulous, but it pays to keep an eye out for those that will take your money without delivering much in return. The Federal Trade Commission advises consumers to watch out if companies:

• Demand upfront payment for credit repair services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they complete the promised services.




• Don't tell you your legal rights and what actions you can take on your own for free, such as contacting the creditors and credit bureaus yourself to dispute any errors in your credit report.




• Suggest that you create a new credit identity by applying for an Employer Identification Number to use instead of your Social Security number.




• Tell you not to contact a credit reporting company directly.




• Advise you to dispute all information in your credit report, even if it's accurate.

Purchase CEMA - Possible Deal Maker

As I delve into the many intricacies that is the financial and real estate market I am processing every tidbit I hear and instantly checking the folders in the computer of my mind to see if I can use the information before filing it away for future use.

I also have this habit of getting excited and acting like Columbus - discovering America - when we all know he technically re-discovered it. Take the Purchase CEMA for example. We had an attorney bring that up to us today and we all ooohed and aaahed like it was a heavenly revelation. And you know what...it WAS a revelation to US but as usual I do my research and lo and behold, there are many others that have not only heard about it but put it in practice. Still...there are many out there that do not know...so it's always worth posting it for the benefit of the latter...

Bottom line is...as a real estate professional, IF and WHEN this great tool can be used, it should always be something you keep in the arsenal of weapons against a stubborn deal or weak economy. It can save money to both seller and buyer and really make that difference between getting the deal done or letting it fall through the cracks at one time or another. It is also one of the FEW things you can do that will please EVERYBODY in the transaction, because everyone either saves money or gets paid!

I will leave it to others to explain how it works since they have already written it and pretty well I might add...

Purchase CEMA – posted by Miriam Bernstein

A Guide to Purchase CEMA's

Again, this may not be an option in all cases, but it sure is a great thing to use every time possible. It's more work for the professionals involved, but after all, we ARE here to work towards the best interest of the client aren't we?

Fighting predatory lending...

In these times of foreclosures and economic distress it cannot be stressed enough that where the lambs scatter the wolf is ready to nab the slowest, weakest or most unaware of danger...in the world of real estate that wolf is the predatory lendor. Very aptly named too - I found this article written way back when on CNN and thought it worth to re-post it here...

5 Tips:
Protect yourself from predatory loan practices. September 27, 2004: 3:23 PM EDT By Gerri Willis, CNN/Money contributing columnist

NEW YORK (CNN/Money) - Predatory lending can take many forms -- from pushing unjustifiably expensive loans on consumers to charging excessive fees for lending services.

Historically, predatory lenders have targeted less affluent neighborhoods as well as the elderly and minorities, the people least able to defend themselves.
How can you protect yourself? Here are today's 5 Tips.

1. Avoid high-pressure salespeople.

Let's say you're on the cusp of qualifying for the mortgage you need to get into the home you want. It's just slightly beyond your reach. A crooked mortgage broker may encourage you to lie about your finances in order to qualify for a loan they may not otherwise be able to get.

"Run for the hills if anyone asks you to inflate your income or deflate your debt," says Brian Sullivan, a HUD spokesman.

These characters may say, "Hey listen, let's not talk about this other debt you've got or -- let's bump your income up by another $5,000."
Sullivan warns this is a recipe for disaster. If you sign on to a mortgage you can't afford and fall behind on your payments, you risk losing your house, your down payment and your good credit.

Also, don't fall prey to the pressure cooker. If a broker/lender tells you they are your only chance of getting a loan, walk away. And don't be talked out of taking time to think over the terms of your loan.

2. Know your home's value.

According to HUD, some predatory lenders lure vulnerable borrowers with cash-out refinances offers when they know borrowers are in need of cash.

These refinances are most often promoted for debt consolidation or to provide money for personal needs. This disastrous situation can play out a number of ways. Once you've taken the bait, the predator may tell you your home has been appraised for more than it's really worth. Why? So you'll take out a bigger loan.

In other cases, homeowners are sold refinance loans based on inflated appraisal values carrying high fees and harmful terms-like pre-payment penalties. To protect yourself, get an independent appraisal if you can afford it. Appraisals can cost anywhere from $300 to $600.

You should also check prices for comparable homes in the area. That way, you'll have an idea what real home values are where you live.

Log on to www.realtor.com or local real estate Web sites to get a sense of what homes are going for. Another resource, www.Domania.com, will help you find actual purchase prices of homes in your neighborhood (its database does not include Texas and a handful of other states.)

3. Don't get steered.

Some unsavory individuals often engage in a practice known as "steering."
According to the National Training and Information Center, an advocacy group, this is when unsuspecting borrowers with credit good enough to qualify for prime-rate loans (8% to 9%) are steered toward loans with sub-prime rates (9% to 20%).

If you suspect you might qualify for loan rates lower than ones you're being charged, there are ways you can comparison shop. Web sites like Bankrate.com can give you rates by state for home loans, refi's and even auto loans. Another one to try is www.hsh.com.
It's always a good idea to know just how creditworthy you are. Credit scores in the range of 620 to 650 indicate basically good credit. If you have a credit score of 680 or higher you will likely qualify for the lender's best rate.

Check out your credit history at the three major credit bureaus: Experian, Equifax and TransUnion. The cost to get your report can range from $9.00 to nearly $30 but qualifying individuals can get one a year for free. One reason everybody should do a preemptive credit-check is that sometimes there are mistakes on your record that could cost you. So check before you apply for any loans.

For more information on tactics used by predatory lenders use, check out www.ntic-us.org. Another helpful resource is the Association of Community Organizations for Reform Now, the nation's largest community organization of low and moderate-income families. Their Web site is www.acorn.org.

4. Fight junk fees.

According to Laurie Maggiano at HUD, lenders can only charge fees for the services they provide. "The bottom-line [is] if you see charges you don't understand, find out what they're for and if they're necessary. If you see a charge for a credit report that totals $200, ask about it! The going rate for a credit report is only about $15."

Be on the lookout for things like "payment processing fees," "document prep fees" or "administrative fees" -- these could be "junk fees" in disguise. Ask about them. If you're not satisfied with the answers you get, tell your lender you want a reduction -- or better yet, try to get them eliminated all together.
According to bankrate.com, lenders are often willing to heed these requests in order to keep a deal together. Before you sign on for any loan, ask for a Good Faith Estimate, a written estimate of your settlement costs. Lenders are required to give you one within three days of application. So shop around.

5. Get free help.

If you're an inexperienced homebuyer, there's help out there.
On the HUD Web site, you'll find online brochures and information meant specifically for beginners and first-time homebuyers unfamiliar with the process. Log on to www.HUD.gov to find an agency location near you, or call 1-800-569-4287.

If you're having trouble understanding the jargon in your real estate paperwork, take your documents to a HUD-approved housing counseling agency. In many cases they will review your documents or refer you to an attorney who will help you for free or at a reduced cost.

Gerri Willis is a personal finance editor for CNN Business News. Willis also hosts CNNfn's Open House, weekdays from Noon to 12:30 p.m. (ET).

Proud to be a NYC Real Estate Mom!

I am happy to report that I have affiliated myself with Mommies Who Know, a specialized division of Metropolitan Residential - an exceptional group of people that are more than willing to help me break into the industry and have already shown me the ropes and seem duly impressed by what I am capable of in my recent dealings with helping my friend buy his home even before I had a license! I love the idea of using my people skills as well as familial status to help other people in this niche market find their next cozy home, be it an apartment or actual house.

As the website states:
Mommies Who Know is a truly fresh and refreshing new concept! We've created a division unlike anything else in NYC - Mommies Who Know is the first and only family-focused real estate practice.

Seeing MY name there on their website is seriously so exciting for me! Yes, I am THAT passionate about my new career move! I can't wait to sift through all the listings and generate new leads and listings and make sense of some of the things that are still a little bit abstract to me. All I know is, I am absorbing everything much like the proverbial sponge!

Yes, I am finally a bonafide NYC Real Estate Mommy - how cool is that?!

It's Official!!!

I passed the State! So now I have both tests done on the first shot without paying for those extra sample exam software or tutoring mithingies and I did not even have time to really study just focused on areas I thought I'd need most for real life Real Estate professional use (in school they have a bad habit of focusing on things that are not even practiced in REAL life real estate go figure, hence my uncertainty in terms of whether I'd pass on the first try or not!)

Did I mention I did this one in 20 minutes too? I don't know what it is about that time frame but I guess it makes sense 75 questions, on both tests, 20 minutes on both tests...though the State exam had a few math questions...yes I guessed...I did not even bring a calculator! I wish they told us by how much we passed so I could get an idea what I got wrong...though interestingly enough, I did want to be cautious so did not say anything to anyone so as not to jinx myself, I thought that the state test was easier than the school test overall! I think Exam 605 is the easiest saw some questions other students came back with from Exam 601 and others and it seemed mine was the easiest...hey, I'm not complaining it's all good!

Now it's on to getting the license and I'm ready to go out there and truly learn the ins and outs of the market in the field...

Yes...I am excited!

One down...one to go!

Don't know if you folks have seen it, but I love watching this really cool program on TV, The Human Body on the Discovery Channel.

In one segment, the featured topic was the fascinating stuff that goes on when our subconscious wakes up as our conscious mind goes to sleep. The part that I recalled the other day is that when you learn something, and then sleep, the subconscious mind, helps you store the data and make sense of it, so that when you wake up you are now equipped with info that you are not even aware you have stored in your memory. Since my memory really sucks, and because of my bad back and all I have not had a full night of sleep since 16 years of age…I figured I am screwed with the test today. This, especially after I took some “sample tests” online and got scores of 2 right out of 10 and 30 out of 100 on another test…suffice it to say I needed to do something and fast!

There are a few of them online…DON’T pay for it…it’s not necessary…you can just do the FREE TRIAL versions they offer and it’s enough believe me! This first one is the best because it has 100 questions for the free trial but the second one is nice too…

EXAM PREP CENTRAL

Online Real Estate Review

Then I got the idea…I slept my usual 4 to 6 hours last night, and finally got out of bed at 7a this morning and took those tests again…looking at the sections that I had gotten wrong and checking out the explanations and I am not kidding you…the info already started to stick…so I did a few more “sample” exams, read up on what I got wrong again and headed off to bed again. This time I slept for 1 ½ hours…I woke up refreshed and got on the train and did some more of those practice tests from the textbook…

Got to school a little late but they let me take the test anyway. It is comprised of 75 questions and is timed at 1 ½ hours. Again, I kid you not, I KNOW some of those things I had not gone over and knew exactly which questions I’d get wrong (though as always I do get lucky and some I get right by the “law of fluke”). But I felt my brain work like a whirring computer…my eyes scanning the questions and my hand filling in the responses almost as if in a robotic, swift rhythm…and 20 minutes after I sat down, I got up and gave in my test. I passed with an 80%. I figured as much since I knew I was lacking some of the info for the other questions…but really folks…this sleep thing…it’s TRUE!

I don’t know how but I promised myself I’d make it a point to start and get my sleep from now on…even if I have to do it bursts!

Now, here’s the kicker, I am NOT sleepy and my little one is home from school tomorrow…so I don’t know if I am going to have time to go over anymore stuff…and I am not comfortable with the fact that I got an 80% on today’s school test (passing grade is 65% for the school) and the passing grade is a 70% on the State test! That percentage does not leave me much room for error.

Yes, tomorrow the world holds their breath as American citizens mill in and out of voting booths to choose our next puppet in office, but for me…tomorrow is my chance at a new beginning, a new career…while the new president may or may not screw us in the coming years…let’s be optimistic and hope for the best!

Comedy Break - Palin On Prank Call

Ok ok...I am cramming for the 2 tests coming up and going nuts trying to figure out where to start as soon as I pass the tests, and get to work...but for now, took a quick break from real estate and took a peek at the funny side of politics.

Apparently McCain was a hoot on SNL and Palin was the unwitting butt of the joke when she got a prank call...see the article below on that one...enjoy!

The written version is below...for those not fond of reading here is the Youtube version.



Palin takes prank call from fake French president
November 02, 2008 7:26 AM EST

TORONTO - Sarah Palin unwittingly took a prank call Saturday from a Canadian comedian posing as French President Nicolas Sarkozy and telling her she would make a good president someday.

"Maybe in eight years," replies a laughing Palin.

The Republican vice presidential nominee discusses politics, the perils of hunting with Vice President Dick Cheney, and Sarkozy's "beautiful wife," in a recording of the six-minute call released Saturday and set to air Monday on a Quebec radio station.

Palin campaign spokeswoman Tracey Schmitt confirmed she had received the prank call.

"Governor Palin was mildly amused to learn that she had joined the ranks of heads of state, including President Sarkozy and other celebrities, in being targeted by these pranksters. C'est la vie," she said.

The call was made by a well-known Montreal comedy duo Marc-Antoine Audette and Sebastien Trudel. Known as the Masked Avengers, the two are notorious for prank calls to celebrities and heads of state.

Audette, posing as Sarkozy, speaks in an exaggerated French accent and drops ample hints that the conversation is a joke. But Palin seemingly does not pick up on them.

He tells Palin one of his favorite pastimes is hunting, also a passion of the 44-year-old Alaska governor.

"I just love killing those animals. Mmm, mmm, take away life, that is so fun," the fake Sarkozy says.

He proposes they go hunting together by helicopter, something he says he has never done.

"Well, I think we could have a lot of fun together while we're getting work done," Palin counters. "We can kill two birds with one stone that way."

The comedian jokes that they shouldn't bring Cheney along on the hunt, referring to the 2006 incident in which the vice-president shot and injured a friend while hunting quail.

"I'll be a careful shot," responds Palin.

Playing off the governor's much-mocked comment in an early television interview that she had insights into foreign policy because "you can actually see Russia from land here in Alaska," the caller tells her: "You know we have a lot in common also, because ... from my house I can see Belgium."

She replies: "Well, see, we're right next door to different countries that we all need to be working with, yes."

When Audette refers to Canadian singer Steph Carse as Canada's prime minister, Palin replies: "Well, he's doing fine and yeah, when you come into a position underestimated it gives you an opportunity to prove the pundits and the critics wrong. You work that much harder." Canada's prime minister is Stephen Harper.

Palin praises Sarkozy throughout the call and also mentions his wife Carla Bruni, a model-turned-songwriter.

"You know, I look forward to working with you and getting to meet you personally and your beautiful wife," Palin says. "Oh my goodness, you've added a lot of energy to your country with that beautiful family of yours."

The Sarkozy impersonator tells Palin his wife is "so hot in bed" and then informs her that Bruni has written a song for her about Joe the Plumber entitled "Du rouge a levres sur une cochonne" - which translates as "Lipstick on a Pig."

Democratic presidential candidate Barack Obama derided his Republican challenger John McCain's call for change in Washington as "lipstick on a pig," days after Palin made a lipstick joke at the Republican convention. The McCain-Palin campaign then released an ad implying Obama was calling Palin a pig with that remark.

The caller asks Palin if Joe the Plumber is her husband and adds: "We have the equivalent of Joe the Plumber in France. It's called Marcel, the guy with bread under his armpit."

He also tells the Alaska governor that he loved the "documentary" made about her and referred to a pornographic film with a Palin look-alike made by Hustler founder Larry Flynt.

She answers tentatively, "Ohh, good, thank you, yes."

The callers then reveal the prank and identify themselves and their radio station.

"Ohhh, have we been pranked?" Palin asks before handing the phone to an aide who ends the call.

Obama's campaign spokesman Robert Gibbs, commenting on the prank, said: "I'm glad we check out our calls before we hand the phone to Barack Obama."

Down to the wire!

So, in 3 days I have the school test and one day later the state test! Did I mention I HATE tests?!? I am completely capable of understanding concepts, I can even wax poetic or expound on them (note a couple of my previous entries inspired by one class or other)as I go on my journey toward obtaining my license.

But give me a bunkload of information to memorize and regurgitate back on a test just because it's on the test not because it will help me necessarily in real life and I'm LOST! I learn to live - I learn to apply - I don't learn for tests! There IS a difference! Can anyone else understand me?! All I know is I need to pass that test and I need to get to work! So many possibilities ahead and yet I hang in limbo as the coundown continues...I hate waiting but here I am...waiting...

There's a reason I'm supporting Fiona's school's Principal as she goes against the Board of Ed to allow kids to be "tested" on more than just so called "standardized" formats...(who the heck standardizes these things anyway?) I don't have time so I won't even get into the things that do and don't make sense in regards to Laws and standards set at Municipal all the way up to Federal levels...I'll get to it in a later post, I can feel it coming on...for now, there's a little girl that waits for me, so mommy's gotta run...

Law of Agency - Buyer's Brokerage

Have you ever contacted a real estate person to help you find an apartment/house? Have you called them “my agent”? Have they corrected you or not? Why are these very good questions?

I’ll tell you why…because if you are part of the majority that speaks in the vernacular - not Real Estate lingo, and are not aware of the politically correct, or rather, lawful and binding terms under which a Real Estate professional must operate, you will really not truly understand that the agent that is showing you that apartment/house does not owe loyalty to you no matter how nice and helpful they are. And no, they are not YOUR agent.

Have you signed that form as they quickly rattled off without breathing, “Irepresenthesellerjustsignhere” and you signed it thinking yeah whatever...not knowing that you just signed away that person’s loyalty to another person? It’s not as bad as it sounds. It’s standard practice, and by law, even though you signed that form and the salesperson/broker tells you that they are working for the seller, they DO owe you honesty and courtesy and it really behooves them to be helpful in whatever way they can without being disloyal to their client, the seller, so that even if they represent the other side, that does not give them the right to lie to you or be rude or unhelpful. They have to present the apartment/house with all its imperfections noted no matter who they are loyal to. However, they do not have to disclose things to you that are not necessary.

I keep saying that it is fascinating stuff to me these days, learning everything I can about Real Estate and it is! But for some reason I am stuck on Buyer Brokerage. If you are a typical NY’er you probably don’t know about Buyer Brokerage. Why? Because it is not really practiced here in the State of New York.

Before we get to Buyer Brokerage let’s cover the main concept known as the Law of Agency. I will put it in laymen’s terms here as you can go online anywhere and find that whole ”FIDUCIARY” lingo stuff. I do like the way it is laid out here though so you can CLICK HERE and see a nice rundown of how agency works.

If you have a property to sell, and contact a brokerage firm (real estate office) and a salesperson comes to you and draws up a contract which you then sign, to list your property, this has now created what is known as an Agency Agreement. Now that brokerage firm owes you their loyalty and will try and either sell that property themselves or have another brokerage firm send their salespeople over with prospective buyers until at last your property has been sold. Throughout the process you can count on them working FOR you. Trying to get you the highest price they can as well as selling it as soon as is possible.

The customer that walks into the same real estate office comes in and says they are looking to buy a house, and it just so happens that your house meets their needs perfectly. Right away the Salesperson that talks to the buyer/customer has them sign the form that says they represent you, the seller. Then they go and show that property and before you know it they are in love and they buy it! Throughout that process, the salesperson has been helpful and working WITH the customer but if you notice they are not working FOR the customer. At the end of the day, both sides are happy and all’s well that ends well.

So why am I stuck on the other side? Why do I want to talk about the Buyer/Customer? Maybe because of my many years of customer service, maybe because I am a people’s person and it is in my blood to owe loyalty to people as a whole not just one side. But then I have never been in the business where I would be in the predicament of owing my loyalty to both sides, where both customers are my clients. This is what is meant by Dual Agency. Buyer Brokerage can easily result in a Dual Agency situation. See the 3 diagrams I put together below then read on for more real estate in my vernacular. It is really annoying how the pictures do not come out good here but click on the link below each graphic to see the full images with all my little notes. (These were inspired by Mr. J Watson, in my humble opinion, the best of the instructors at The New York Real Estate Institue.)



Click here for full Graphic


Click here for full Graphic


Click here for full Graphic


In New York, Buyer Brokerage (also known as Buyer Agency Agreement) is not practiced very much. To figure out why, we have to look at some of the advantages and some of the disadvantages in this type of agency.

Advantages for the Buyer/Client:
~ The broker owes you 100% of their loyalty. (i.e. help you negotiate a deal that is in your best interest not the sellers)

Disadvantage for the Buyer/Client:
~ Owe loyalty to the broker - as with any agency agreement when you sign that form, you are now in contract with the broker. (i.e. If they in good faith help you find a house and then you turn around and go straight to the owner to negotiate the deal, you will be in breach of contract and still owe the commission to the broker.)

~ Dual Agency - if it just so happens that the house you want to buy was listed by the same broker that you have a buyers agency agreement with, in order to make that purchase you have to give up your right to 100% loyalty. Dual agency has just reared its controversial head. As the good book says, you cannot serve two masters. So, in this case, it is understandable that if the seller and buyer BOTH have an agreement with the broker that neither one can expect their due loyalty from that broker, though it is a given that the broker will try and do the best for both to make sure both sides are happy with the final negotiation.

Advantages for the Broker:
~ Buyers Loyalty - most buyers are not “loyal”. In other words they’ll go out and just shop around with as many brokers as they want and all the work you did for them does not matter if they end up buying something on their own. Under this agreement, you are working hard FOR them but now have their loyalty to boot. They will find what they are looking for with your help and you will get your commission on the sale when everything is said and done.

Disadvantages for the Broker:
~ Dual Agency - We all know that we want to avoid the big D.A.. This is the main and #1 reason brokers may not be in love with buyer agency agreements. Every broker wants to keep as much of the commission they can from any transaction. So, if they list the property, they would love to also be able to sell that property. This keeps it all in-house as it were. When a buyer is simply a customer, that is doable and perfectly alright. If a customer insists on a buyer’s brokerage contract then the broker has to try and find that buyer a property that was not listed by them so that they are not representing the seller as well. This is not the optimal situation because now the broker will automatically only get half the commission he could have gotten had he done that complete transaction in-house. And of course, if it just so happens that the buyer mentions a property they want to see and lo and behold it happens to be listed by this same broker, then the dual agency form must be filled out and both buyer and seller must agree to what that implies.

I wonder what people think - in light of all this, would you or would you not practice Buyer Brokerage? I know some people that swear by it. It’s true on the most part they are investors that really don’t have the time or will to go out and/or go online to search listings to find that perfect next property. For the typical first time home buyer, or someone looking to rent an apartment, it may not really be that option that makes sense…but for some it will really be in their best interest.

Politics, Real Estate, etc.

It’s been a few days since I’ve written in my little blog here, but figured after that looooong entry on The Mystery House, a break was necessary. No, actually I have been crazy busy with my job, and school but I have a few blog entries already in my head…just a matter of having some time to put it all down. Will have to get back to it later…

In honor of the constant over saturation of media coverage on the coming elections, I suppose I have to write a little something on politics…

My 7 year old Fiona comes home from school the other day and says, ”Mommy, who are you voting for? John McCain
or Barrack Omama ?” Hey don’t laugh, she was close! I can honestly say I never gave a hoot about politics at 7 years of age…I think I just made it clear I still don’t beyond the unfortunate necessary fact that politics does affect the American quality of life.

I am watching the election coverage on the news and have to wonder. How is McCain better than Obama or vice versa? They both promise the salvation of our country’s sick economy. They promise tax cuts and they promise reforms. Apparently McCain is more of a trickle down effect kind of guy or maybe it’s the stigma of being a Republican?...but a better bet for National Security, while Obama is all about money to the working people but weak on International Policy ... Who the heck is one supposed to believe?

Personally, I cannot bear to vote. In my book, politicians have let us down left and right, year after year…how many of those promises are real and how many are just propaganda? I don’t want to be responsible for the puppet in office so I say people of America…good luck! In the meantime I am hoping the lesser of all evils wins out and we get a little break here and there…

Speaking of propaganda, and back to real estate…

In school we are bombarded with recruiters that come in and promise us they each will be the single best brokerage firm to work with after we get our licenses.

The big firms argue that they are so wonderfully equipped with all the training tools that we could possibly need. The smaller firms claim their “boutiquey” size allows “real 1-on-1” training, aka “hand holding” which of course is an attractive quality to a new salesperson going out into the field. But then with so many large, middle and small companies coming in and out every day…I have to say…I am confused if not a little overwhelmed!

How on earth do I know which is truly going to be the perfect fit for me? Well…all I DO know is that on the 3rd of November I have the New York Real Estate Institue school test and on the 4th , the NY State Real Estate Salesperson Test. THEN comes the moment of truth…I will have to go out there and test the waters and if necessary jump ship from one brokerage to the next until I find the one that fits me like a glove. No, I am not that picky…it’s all about clients, listings, customers, and closings folks. If I get a few of those fairly early in the game…I am one happy camper…until I can afford a house that is. ;o)

The Mystery House Chronicles - First Time Home Buying

I have been promising a mystery house story from my very first blog entry. It’s about time to spill the beans – we will use first letters and not full names to protect certain parties. If you recall from my previous entries this is the adventure that brought me back to real estate after having tried to interest myself in it 5 years previously...but with no success...just could not get into it...now, it's a different story...

Warning: This is going to be really long, I just can’t tell a story in 3 words…so don’t read this if you can’t read it from beginning to end. One day when you are having your coffee or you’re bored and in-between doing something more important…have a seat and let me take you into my world for a quick spin. As always…it’s the scenic route.

On my daily commute to and from the city, while others were reading the Wall Street Journal, or the Daily News, I was reading John Ghrisham, John Saul, Dean R. Koontz, Robin Cook, Sidney Sheldon, and Jeffrey Archer just to name a few of the authors that I have also favored since the 8th grade.

I had survived the Sep 11, 2000 travel market crisis, and even given myself a raise while the rest of the company grumbled because they believed the CEO’s speech of doom. “You all should consider yourselves lucky to have a job, we cannot give anyone raises this year!” he proclaimed, and combined with a very stern expression stared them all into submission.

Being a slightly different breed myself - told him to go to suck a lemon, in the quiet recesses of my mind and went out and interviewed with other agencies, and found I could make about 15k more a year at 2 other companies. When I came back to my manager and told her, all it took was 30 minutes to have them agree to match the salary so that I don’t leave and go elsewhere. Having been the only one that got a raise that year, and of course having been admonished to keep it a deep dark secret, I kept quiet - even as I had to listen day in and day out, to my fellow co-workers whine and grumble about the costs of living going up and salaries not keeping up to match.

Why can I never just get to the point without taking the reader on a scenic route I don’t know but the point I wanted to make above is that while Real Estate and the financial market made me yawn…I just survived through good old fashioned hard work and street smarts.

Enter my friend - very interested in buying a house. I ignored him as he went online and browsed different websites to find a house that he can sink his teeth...er... savings into. Finally he asked me for help. “You are the internet fiend, can you help me search?” In other words, he does not have the patience for research. I, on the other hand, while short on patience in many other departments, have a curiously long suffering patience when it comes to research.

I started to look and compare, still not more than slightly, remotely interested. Soon enough we made an appointment to view a house that for some reason really grabbed my eye. We went to see the place and I got bit by the “Real Bug”! Yes I am coining the term - it’s as close to the love bug as I can think of. The house was in ruins, the foundation sinking in 2 corners but I saw potential! I saw the back yard overlooking the Hudson River and in my minds eye, I saw that beaten down house newly restored and looking like the regal beauty it must have looked like back in the day!

No, we did not even make an offer on that house, (all work aside. the taxes in Yonkers are downright criminal) but I was hooked!

We did a few more searches and saw a lot more houses until we found one on Craigslist. A 2 family at the incredible price of 270k…hmmm sounded like a good deal. We called the broker. It was in the Morrisania area of the Bronx. (Note: This area is going through a "gentrification" phase while at the same time still falls under a special census tax bracket which means you get a little break in the mortgage rate; in short, this is apparently supposed to be the best of both worlds.)

“No, there are no photos for this place but it’s a GREAT deal" the broker stressed to us on the phone, "You just have to come and see it and just remember the outside is no big deal…just a fence and some plastic to make it a private area where the old lady of the house can sit outside in front of the house without worrying about anyone bothering her. It’s all cosmetics really, otherwise the house is a rare find, you’ll see!” Well with sky high hopes and flying balloons…we were raring to go and see this “treasure” she described!

We saw a lot of brand new houses on the block, hmm, this area seemed to be building up…very nice! Then we saw it…the only eye sore on the block.

The stairs that used to be a beautiful natural brick were painted a dark green that was peeling from all angles. The front of the house sure enough was almost hidden from view when you looked at sidewalk level by this hideous makeshift shed, made up of a green fence and plastic covering. But hey…remember…we have our rosy glasses on and we know that these are simple things that must be hiding the true beauty that is the inside of that there house…a simple cosmetic procedure or two and she’ll be shining bright!

A little belated here but a basic layout…2 units. One studio and one duplex.
~ Street level – 1 Studio, with a nice sized country kitchen and small bathroom.
~ First floor – 3 bedrooms no bathroom
~ Second floor – 3 bdrms and a bathroom (one bedroom supposed to be a kitchen)

We walk up the stairs and greet Agent B. She is all hyped up and immediately introduces us to the lady of the house. Her name was Mrs.B (hey I didn’t come up with these names and no they are not related). Mrs. B looks to be about as old as the house. She speaks fondly of her home and the many, many years she’s lived there. We look at each other and smile; nice lady, surely she must have lived here for 30 years or so.

I know I am almost 5’10 and not exactly thin, and maybe that has something to do with it, but my first impression…ye gads!…the stairs inside the hallway past the front door were SO narrow I think if I weighed one pound more I’d have to go sideways! The hallway – same thing. Add to that…something I’d never seen in my life…a cloth in the ugliest shade of burgundy you can imagine covering the entire walls of the house’s hallways. (Saving money on paint I guess but made one wonder what on earth one would find if that layer of covering was removed.)

Oh but it gets better…apparently Mrs.B had done all the cooking for the family so the only kitchen existed on the street level (read that as alternative to basement level) and the rest of the two floors, no kitchen. Ah, but then a correction, yes, there HAD been a kitchen upstairs in that last room there but when the grandson was going to college they needed that extra room for him so they covered up the gas and plumbing fixtures and converted it into a bedroom. But when we look at the room we see that ALL 4 walls have some plastic covering on them like something is hidden on all sides…so there seems to be a mystery as to which side is hiding the “kitchen” requirements.

You’d think from reading this that we were all disappointed and just went home. Oh no…we are optimists…we pride ourselves on seeing beneath the exterior…not judging a book by its cover…ok you get the idea. We saw the p-o-t-e-n-t-i-a-l.

There is one more detail that bears mentioning. The back yard was covered up too apparently and Mrs.B kept telling us to look at the top of the “shed” from the window and see what it looked like. Um…ok that did not give any indication as to what was inside the shed or what kind of mess we’d find there…I’m thinking tools, junk and spiderwebs…

The door to the shed however was locked and apparently no one could find the keys. We were told by the good lady that this was put in by her son years ago because people kept throwing things from the top of the buildings and into the backyard.

Anyway…we left in good spirits and that night I emailed Agent B and made her an offer on behalf of my friend. Things started to move along rather quickly after that. Agent B recommended a few mortgage brokers/lenders, among them Kitty Dearie of Dearie Mortgage Group.

She is the best I have to tell you…totally lives up to her name too in terms of being the sweetest person alive! Add to that an extremely efficient staff, and it's been nothing but a pleasure to deal with her.

On that note I also did some research on my own and came up with the attorney that would represent my friend. Lo and behold she happened to be in the same building as Kitty up in Riverdale! I saw some online reviews that said she was the best at her job and great at hand-holding, so you can imagine first time homebuyers…yeah we’d need some hand holding alright! So far she has lived up to her reputation…you’ll see in a bit…she is Errika Kalomiris, Esq.

Everything was going along well and we called in the inspector…this time recommended by Errika (what a bunch of helpful people I tell ya!) Dov Herman of NY Inspect a big bear of a man with a pretty sharp wit. He wasted no time and we got to inspecting the house along with him. This is where it gets interesting…

First of all, in the glaring light of day the whole house seemed to really take on an ominous appearance. At night it sort of blended in but in the daytime you could see how dark it really was inside and how small. Also how filthy it was. Ok ok…we could clean that up no problem…but a damper still…

We start on the top floor - first thing Dov notices - there is no way to the roof…he asks the ladies of the house (today there were 3 of them) and they shrug and say we don’t know. There is a locked closet next to the bathroom, he is pretty sure there might be a way to the roof through that closet but again we get a very uncooperative “Don’t know where the key is we never go in there…”

“But ma’am we need to know what is in there, that is what we are doing today, an inspection,” we insist.

To which she shakes her head and walking away mutters…”Even we don’t know everything about this house that’s why we’re getting out of here.”

Say what?!...

We turn to the first room and see that it too is locked. “Ma’am, we need to look at this room especially since this is supposed to be the kitchen. Can you open this door?”

“I don’t have the key, my granddaughter has it” we are told. This is another elderly lady that we are not sure as to her actual name or relation. “Let me call her”.

A few minutes later the key appears as if by magic. We enter the room and look around. We ask about the kitchen area and we are told it’s behind one wall. Another lady says it’s behind another wall. We are confused. More than a little bemused we decide to let it drop for now and move on to the other rooms. Then on to the floor below and finally to the street level.

As we walk down the stairs and into the street level studio apartment, we see this area too is full of a lot of junk which certainly does not add any appeal. We make our way to the backyard “shed” and lo and behold it happens to be open! I decide I am not going in there…sorry, my phobia of any creepy crawly thing with more than 4 legs just has me beat. Dov enters first and I watch from the kitchen doorway…

”WHOA!” he exclaims, “what have we here?!”

Needless to say I am intrigued…I gathered my wits about me and bugs or no bugs had to see what he was seeing.

“Wow” I breathed…“this is something else!”

It turns out that the so called shed was actually a cover for an actual cement bunker!!! Complete with a windy hallway/tunnel and a little area at the end that housed a bed covered by a blanket as well as an electric heater nearby.

Immediately our creative imaginations went into overdrive…

We are all throwing out our theories:

“You think they have people here on bread and water? Or maybe they’re making an extra $100 a month and renting out this place? This looks like it was built 3 years ago not a long time ago like they claim…what do you think is going on here?! This thing is not in the plan of the house this can be a problem…” and on and on we went.

You want to see what we saw?

Here you go:







We walked back outside of the bunker and notice a small run down bathroom wedged in a tight space on the outside. It was obviously not a working bathroom and yes there was some kind of pan on the floor…

“Ugh I don’t think you need me to tell you what THAT thing is used for…actually I don’t even want to know!” one of us remarks.

We start to see some colorful looking characters walking in and out of the house by that time. See, turns out Agent B never told the lady of the house we are going to do an official inspection she thought we’d just drop by for a few minutes to take another look at the house on the outside. According to Agent B there was never anyone there but Mrs.B and her daughter and granddaughter every time she went, but after we told her the people we saw coming and going she realized why she’d been told she had to give 24 hour notice before she came by every time. To hide whatever was going on which I still don’t even want to speculate on. Suffice it to say, things were looking mighty shady…

We went outside to where the real makeshift shed had been built at the front of the stairs to allow Mrs. B some private outside time and as we continued speculating about the discovery we just made - I warned the other three just in time, and we all jumped aside as right over our heads, where you have the porch for the floor above street level, the family pet apparently found his favorite corner and let loose both number 1 and number 2.

“That does it for me…I’m out of here!” Dov jokes. We went back inside nice and quick.

I could not resist asking Mrs. B…“How long have you lived here?”

“8 years dear…” I’m amazed…according to Agent B and even on our last visit she had talked like she’d raised her entire brood in that house.

“When was that shed put up out there?” I have to ask again…

“Oh that was before we got here dear”.

Huh?! Last time we were here she told us it was put in by her son to cover the backyard, this time when she realized we had seen what was there she changed her story…I did not push...better to leave it alone...

By the time we left we had already made up our minds. The rosy glasses had turned a very smoky hue - downright dark. Luckily we had yet to sign the contract…

Errika calls back the next day and drops another bombshell. Apparently the seller’s attorney had been operating under fake pretenses. He had been disbarred since 1987 and not only that, was working under the name of his deceased partner! (Told you she’s good!)

The common refrain we have heard from all professionals involved has been…

“I have been in this business for (15, 20 etc) years and have never seen a situation like this!”

What can I say…this is my first adventure in real estate…there are a LOT of lessons to be learned from this and I may post those another time if I have not lost your interest yet…

Somewhere in the middle of all this, I had my epiphany - I am going to become a real estate agent! I had seen the good, the bad and the ugly for the most part in this deal that went sour and yet it only served to whet my appetite and further entice me...

Have to quote Mr.Watson...

"In this business, if Real Estate was just Real Estate was just Real Estate...I would have been bored to tears and doing something else by now...the thing that keeps it interesting is that no two deals are alike...something always happens differently and I just love to see how each one will turn out."

I second the motion.

Sellers Market or Buyers Market?

In the spirit of learning on the fly, as the countdown to my license continues, I have started to immerse myself in reading and learning about the market and how it affects real estate. To those that know me, this kind of talk would elicit a "Who are you and what have you done to Laura?" kind of comment. It's all about cycles folks...I have begun a new phase and this is now utterly fascinating stuff to me!

Some of the reading I've been doing...

The Real Deal
According to Mr.Watson, there is more to this magazine then just a lot of advertising, and he's right.

Housing Predictor
According to their website, “Housing Predictor provides independent real estate market forecasts for more than 250 cities in all 50 U.S. States and housing news.” They have some great articles to read up on too.

I have also started to keep up with some blogs. One that I enjoy not only because of the information but the tone, very tongue in cheek, in which it is written, is called URBANDIGS . One article I think is very interesting to read as we process the latest market crisis is ” Bidding in a Market That Buyers Feel 'Should' Be Fearful”. I am going to quote the first part of that blog here to get you started.

"Almost all other markets outside NYC are experiencing fierce seller competition where battles take place to be the most aggressively priced property on the open market. The result is asking prices some 20%-30% below peak levels. Yet in Manhattan, this is not the case. This leaves buyers wondering why the Manhattan real estate market is not filled with more fear, considering the events we are facing. It also leaves sellers in a state of 'wishful thinking' and 'hope' as their competition is priced at or near peak levels. This combination is likely to lead to the adjustment phase.

I can't stress enough the role that hope/anchoring & confidence play in a housing market in times like these. Anchoring affects the sell side while confidence affects the buy side. The combination of these two mental forces lead to real changes. When I say anchoring, I mean the psychology of sellers to anchor themselves to a fixed point (in this case a price, perhaps from a previous higher sale), even though that point has no more relevance in today's marketplace."

If any kind soul happens upon my blog and would like to recommend other sources of information by all means leave a comment or email me.