Tearing down a home, a history

I’d jump the bridge, but too many friends live underneath it. I’m sure many of you who have gone through foreclosure, or lost your home in any other way that wasn’t of your making, may be feeling the same way.  Maybe many of your neighbors have lost their homes to whoever their lender was. The difference is there is new legislature almost every other day to protect people in their homes, whether they be renters or owners, unless you live in a mobile/manufactured home.

As I wrote in my last post in June (I really have been away too long), the City Council of Capitola had come to an agreement with the owner, Ron Reed, of the Surf and Sand Mobile Home Park in order to get rid of a couple of lawsuits Mr. Reed had filed against the City. You can see the post “Real Estate And Politics” here.

Since that took effect I have one neighbor who is all but bedridden with depression and worry. I have four neighbors on my street or the cross-street who have just given up their homes.  And a week from yesterday, my own mobile home will go to auction for “storage fees”.  In 9 months of paying rent here, the park owner has never given me the right of tenancy, and as soon as the City Council did their thing with the new ordinance, he raised my rent by triple-plus what is was originally. What’s funny is I would pay his raised rent, but then he still would not give me tenancy, so what good would it do?

It’s sad enough when it’s a matter of the economy. Yes there are so many people that say “well they shouldn’t have bought a home they couldn’t afford” when it comes to foreclosure. Has anyone else noticed that it’s people with super credit that are also losing their homes  now? No matter how good they were about paying bills in the past, that now without a job, they can’t be A+ anymore?

And for Capitola, it’s even more sad when a town of only 10,000 people have hired a “goon squad” for a City Council. What’s really sad is some of us did it to ourselves. We voted for these people. Why? Because they all said they were interested in fighting for the same causes we were. Now, not even a year later, they have hidden their tails between their legs, and turned on us.

Across the nation lawyers are getting rich and mobile/manufactured home park owners are getting richer. In our own park the landowner supposedly made $420,000. last year even with rents under rent control, and never put a dime back into the park.  People have had to tear down and rebuild here because the infrastructure won’t take the 50 amps of a new manufactured home, it can only sustain 30 amps because the infrastructure has never been kept up to date.  So people have to amp down their homes in order to live here.

I cry as I write this morning, not just for myself, but for all the people everywhere who are losing their homes to greed. Most of these park owners don’t live in their parks like the old “mom and pop” owners did. Many are bought up by corporations strictly to see how much more money they can make. They are accomplishing it by bringing cities to their knees in lawsuits and paperwork.

Most people bought their homes here because they planned to retire here. They wanted something they were sure they could afford. Now the Capitola City Council is running from different lawsuits and is planning on repealing rent control completely.

You ever wonder how the politicians ever got so bad that we have in Washington? They got trained in hometowns across America.

The hole that's left

As I wrote in my post “When Property Rights Collide” Mobile/manufactured home park owners have been at war with park residents across the nation, and especially in California, concerning space rent and rent control.

Last week in Goleta, CA, there was a landmark case where the Supreme Court refused to hear an appeal by the park owner regarding the “taking of his land for public use”. The park owner had won in the lower court fighting Goleta’s rent control ordinance. The park owner lost in the Ninth District Court of Appeals, and by the Supreme Court refusing to hear the case, it sets a precedence that the Appeals Court ruling stands. This helps cities everywhere that are trying to protect their elderly and lower income mobile home citizens by fighting for their rent control ordinances.

What the City of Capitola has chosen to do is re-write their rent control ordinance and add a “Subsection D”. This section de-regulates rent control for the mobile home parks in the City that still rent out spaces instead of being resident owned. Due to this new “Subsection D” I have learned more about real estate and politics than I ever wanted to know.

As a result of the City Council passing the new ordinance (behind locked doors during a flood, I might add), the mobile/manufactured home residents chose to gather signatures for a referendum to either repeal the ordinance, or put it on the ballot before the voters. Due to a technicality (the pages weren’t stapled together properly with the ordinance when turned in), the City sited the referendum as “insufficient”, which means it goes no further than City Hall.

The effort was put forth by many of the low income citizens who now cannot afford the $15000 or $30000 the lawyers say it would cost to fight it in court. For now, the City has won and the new lease packets have been sent to the residents in the Surf and Sand Mobile Home Park stating what the new rents would be for each space.

The packet I saw was approx. 252 pages long and asked for everything from the resident’s name to her underware to prove she was low income and qualified for the lease she was offered. This same packet has been sent to other residents in the park that are in their 80′s or 90′s, or mentally/physically challenged and they have 21 days to respond. This lease would take a month of Sundays and a half dozen attorneys to get through in a lifetime. I don’t know how these people are supposed read, let alone understand what they are signing if they accept.

The rents range from $475 being the new low for “extremely low income” to $2800. for those not categorized in the extremely low to low, to moderate income categories. Many people do not know what they will do, and everyone has lost any equity in their homes that they may have had. While going through this myself here, I can only imagine the devastation to the people at the De Anza Mobile Home Park where their rents are now anywhere from $2000 to $5000 per month.

As for everything any kind of government does, it seems this is yet another case where they have over compensated and gone from one extreme to the other.

The residents aren’t thru yet. There is still a possibility of getting free legal through Senior Services, or many other alternatives yet to try. If you happen to be a mobile/manufactured home park resident where ever you are and haven’t been able to purchase your space from the park owner, be vigilant about maintaining your rights. Many people here didn’t bother to get involved until there was too much at stake.

Kitchen before Laminate

I have always loved hardwood floors for their beauty. I have always hated hardwood floors for the care they required. After a terribly bad experience I had with hardwood floors in a duplex I rented when I was quite young, I have always carpeted everything. Today hardwood floors still seem to be the desired look when getting your home ready to sell, but there’s a whole new breed of flooring out there today.  Laminates seem to be the new trend in flooring.

I had my first introduction to laminate flooring when I listed a house in Mountain View. You walked in the front door right into this huge living room that was absolutely beautiful. The whole living room and hallway had been done in this fairly light colored laminate which I could not tell from hardwood. My clients were the first to give me an education about the new kind of flooring.

Next time I ran into it, my boyfriend’s son had turned his living room into a bar type environment. He had a bar with stools, and a pool table, etc. He chose to do his living room in this rather dark colored “Bamboo”. He installed it all himself and it came out so beautifully, he’s chosen to go on and do the rest of the downstairs in this type of flooring. I can’t even explain here how “rich” it looks.

Now we’re remodeling our mobile home (See my post “When  Real Estate Meets a Sociopath“). After learning how easy it is to install and care for, I went on a hunt for Laminate flooring for our kitchen and dining area. We can’t afford much, but that’s another thing that is so great about this stuff. It doesn’t cost nearly as much as the old “hardwood” floor. Like anything you need to educate yourself a little bit on what kinds of flooring are available, and of course shop around.

We ended up at Bay Area Flooring Live. He’s located in Willow Glen and just moved into his new showroom about a month ago. He’s got different kinds of the flooring actually laid down in his floor so you can see some of the different textures, what it might look like in your house. He has a ton of samples. The hard part for us was what color to pick. He doesn’t carry a bunch of inventory but is more of a “broker” for factory direct flooring, so his prices are really great. He’s also very knowledgeable about what kind of flooring is best based on the project you are doing. Thank goodness for his help because there was so much and many different kinds to choose from, I had no clue what I was doing!

I’m really excited. We went and visited him last week and will get the flooring in this week. The color we picked needed to pull together the “dessert sand” color the last guy painted the kitchen walls, yet go with the white cupboards and off white carpeting in the living room. I didn’t want anything too light as we needed some contrast, yet nothing too dark as the mobile home has a tendency to be a little dark already. We ended up with “Golden Teak”.

If you live anywhere in the San Francisco Bay area and are looking to remodel or give your home a bit of a “lift” go visit John at Bay Area Flooring Live. Tell him Lauri sent you and take a look at all the Laminates, the new trend in flooring.

Of course not every program is going to solve the problems of every home owner. The Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took  effect on April 5, 2010.

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP (including HAFA) is available at: www.makinghomeaffordable.com/contact_servicer.html.

What is great about this aspect of the Make Home Affordable program is the fact that

1. The lender can use the same info they already collected from you for a loan modification
2. They are given incentives to work with you regarding a short sale or Deed-In-Lieu-of -Foreclosure.
3. It allows homeowners to get pre-approved short sale terms before the property is even listed. This should help streamline the process and make the home much easier to market.
4. It allows the homeowner to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed). This is a BIG one folks!

They also have allowed for incentives for the home owners:

Provides the following financial incentives:

• $3,000 for borrower relocation assistance;
• $1,500 for servicers to cover administrative and processing costs;
• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.

So, between the three, you think you’ll be able to make your home affordable?

HAMP, or the Home Affordable Modification Program was designed as an effort to help distressed homeowners modify their current mortgages. I can’t tell you how much I wish these programs had been in place 18 months ago. Now that they are here, more homeowners really ought to try and take advantage of them.

The homeowner criteria for qualifying is:

1) borrower is delinquent on their mortgage or faces imminent risk of default
2) property is occupied as borrower’s primary residence
3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

After determining a borrower’s eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower’s total pretax monthly income:

• First, reduce the interest rate to as low as 2%,
• Next, if necessary, extend the loan term to 40 years,
• Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

Note: Servicers may elect to forgive principal under HAMP on a stand-alone basis or before any modification step in order to achieve the target monthly mortgage payment.

While the program provides incentives for the lender, I can see where it doesn’t seem like enough to make it worthwhile on the lender’s end to co-operate. Also note that these guidelines are guidelines the industry can use but doesn’t necessarily have to.

Many of the participants in this part of the Make Home Affordable Program are now suing many of the big lenders such as B of A, Wells Fargo and JP Morgan Chase. It appears that these lenders have given trial modifications to borrowers and then, even though the borrowers have met their end of the obligations, the lender never makes it a permanent modification. This ends up leaving the distressed homeowner more distressed than ever.  Many times the lenders don’t even tell the homeowner why they are canceling the modification agreement. These lawsuits are picking up momentum across the country.

Until recently with tighter laws, at least in California, this part of the program has been a feeding ground for crooks in real estate. Many claim to be able to get the distressed homeowner a loan modification to avoid foreclosure, charge up front fees, and then disappear. New laws have made it so that no one may charge an upfront fee for any of these services.  The borrower could do the negotiating with the lender themselves. Any previously approved companies that were allowed to charge fees, the approval has been revoked. If you are in the state of California and someone is trying to charge you an upfront fee for these services, you should report it to the Dept. of Real Estate right away.

There are plenty of Realtors out there that would be happy to help for free, including myself. Feel free to contact me anytime.

HARP- Home Affordable Refinance Program

Most distressed homeowners cannot refinance under regular means as they now owe more than the property is worth. When you go to purchase a home, the lender will not loan even 100% Loan To Value, let alone get a bank to work with you to refinance a debt that in many cases is over 100%.

To qualify for a refinance under the program you must meet the following:

• Your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.
• You are current on your mortgage payments (and you haven’t been over 30 days late with a mortgage payment in the past 12 months).
• Your current mortgage is at least three months old.
• Your first mortgage is less than or equal to 125 percent of the current market value of your home.
• Your property is 1-4 units in size.

This program was set to expire in June of this year but has received a one year extension to June 30, 2011. The Federal Housing Agency has stated that they have not seen a substantial change in the market since they implemented the program, and have thus decided to extend.

This program has been deemed only moderately successful. Between the homeowners that don’t realize it’s an option, the banks that won’t co-operate, and the homeowners who would rather walk than keep paying on a loan that is bigger than the worth of their home, there haven’t been a lot of takers. The banks may be more co-operative this time around as many homeowners are choosing to just walk out, many more than last year when this program originated.

In Santa Clara tonite and tomorrow night they are holding auditions for “Jack And The BeanStalk”. Everyone from 8-18 is invited to try out for the show. Just click here to go to the site for more information.

Mark your calendar now for the 30th Annual “Art and Wine Festival” in Santa Clara on Sept. 18 and Sept. 19. Admission is free. For more info click here.

As Realtors we are reminded all the time about safety when it comes to holding open houses, but here are some open house safety tips for home sellers.

You are trying to sell your property and have decided to hold an Open House. While an open house can be a great sales tool, but it also exposes you to numerous unfamiliar people for the first time. Stay safe by practicing these guidelines.

I would say the number one tip is to hold the open house with someone. As they say “there is safety in numbers”. If you can get a spouse, neighbor, someone to sit with you through the open house hours. Not all agents, buyers and sellers are who they say they are. Predators come in all shapes and sizes. We tell our children not to talk to strangers. You need to be aware of who your are talking to also. If you have a gut instinct something isn’t right, follow your gut.

Strangers will be walking through your home during showings or open houses. Hide any valuables in a safe place. For security’s sake, remember to remove keys, credit cards, jewelry, crystal, furs and other valuables from the home or lock them away during showings. Also remove prescription drugs. Some seemingly honest people wouldn’t mind getting their hands on a bottle of Viagra, uppers or downers.

Call the local police department and ask them to have a squad car drive by during your open-house hours.

• Check your cell phone’s strength and signal prior to the open house. Have emergency numbers programmed on speed dial. Make sure your cell phone is fully charged.

• Determine several “escape” routes that you can use in case of an emergency. Make sure all deadbolt locks are unlocked to facilitate a faster escape.
• Turn on the lights and open the curtains. These are not only sound safety procedures, but also great marketing tactics.

• If you were to escape by the back door, could you escape from the backyard? Frequently, high fences surround yards that contain swimming pools or hot tubs.
• When prospective buyers begin to arrive, jot down their car descriptions, license numbers and physical descriptions. (In theory this is great practice, but you may not have time if several buyers show up at once).  At an open house, be alert to the pattern of visitors’ arrivals, especially near the end of showing hours. In some areas, a group of thieves will show up together near the end of the open house and, while a string of “potential buyers” distracts the seller, the rest of the group walks through the house, stealing any valuables they come across.

• When showing the house, always walk behind the prospect. Direct them; don’t lead them. Say, for example, “The kitchen is on your left,” and gesture for them to go ahead of you.
• Notify a friend or a relative that you will be calling in every hour on the hour. And if you don’t call, they are to notify the police immediately.
• Inform a neighbor that you will be showing the house and ask if he or she would keep an eye and ear open for anything out of the ordinary.
• DON’T leave personal information like mail or bills out in the open where anyone can see it. Be sure to lock down your computer and lock up your laptop and any other expensive, easy-to-pocket electronics, like iPods, before your showing.
• You are responsible for your pets. If possible, animals should be removed during showings. Be aware that buyers and agents are sometimes attacked, and the owner will be held liable. Maybe you have a dog, cat or bird that isn’t allowed outside. Accidents happen. You wouldn’t want to find your pet out in the middle of the street.

Finally, whether after an open house or a standard showing, make sure that all doors and windows are locked. Thieves commonly use open houses to scout for valuables and possible points of entry, then return afterward.

I hope these Open House Safety Tips For Home Sellers help keep you aware and safe. As always, if I may be of service, don’t hesitate to contact me.

According to Washington research group Center on Budget & Policy Priorities who just did a research study, 43 states are in trouble with their budgets. Of course in order to close those budget gaps, the states starts cutting funding to the counties which in turn starts cutting funding to the cities. Along the way everyone starts cutting programs. At this point it turns into a rather vicious cycle. As the different levels cut programs, they cut jobs and people, making the housing crisis even worse.

This along with the fact that the banks are still rather uncooperative when it comes to dealing with their customers regarding lowering loan balances or loan modifications, it sure makes it tough to get a recovery on sure footing. I had a lady in the office the other day had been working for months on a loan mod with her bank. She had been paying the agreed upon payments for 9 months on time, only for the bank to come back and tell her she didn’t qualify for the loan modification. Now mind you, this lady has been making these payments for 9 months already! I swear, I would love to understand the logic.

If you have your own horror story about trying to work with your lender, or if you feel the foreclosures will continue in record amounts, please feel free to share in the comments below. If I may be of any assistance to you, please don’t hesitate to contact me.

A new bill is on the floor of the Senate that again is meant to help distressed homeowners in foreclosure.  SB 1275 would help homeowners avoid foreclosure while seeking a loan modification.

Everywhere you turn you hear that lenders don’t want your house, don’t want to foreclose and carry your house on their books, would rather do anything than foreclose because it costs them so much money. Yet as I listen to the every day horror stories, I find it so hard to believe that “banks are more co-operative than ever”.  It seems amazing to me that there is even a need for the bill such as the one above, but these lenders who “don’t want your house” will go right on through with the foreclosure while you are in the process of negotiating with them! Anyone who has tried to get a loan modification or even a short sale with an offer in hand, knows these things take time and persistence. Half the time when it comes to the lender the old saying “the right hand doesn’t know what the left hand is doing” is ever so true.

Most of the time until you’ve started missing payments, the lender won’t even talk to you. Once you have their attention because you haven’t paid in a couple of months, then it takes forever to get answers back to your requests for any kind of loan adjustments.

If you want to save your house and you have any chance of doing so, you have to stay vigilant. You cannot drop the ball for a second. We don’t know the fate of this bill that is on the congress floor right now. Many are opposed to it. If you want to save your house, it’s up to you to be very pro-active. Don’t wait for someone to ride in and save you, as you can tell by looking at all the notices still flooding the newspapers, it’s likely not to happen.

If I can be of service and help with any of your questions regarding foreclosure, selling your home, or any other real estate needs, please feel free to contact me at 408-313-3270, or by email through this blog.

Now, getting over myself, if you are in distressed homeowner in trouble, either your mortgage is more than your house is worth, or you’re on the brink of not being able to make your house payments, call me. It doesn’t cost you anything to pick my brain and I’m not the “pushy salesman type”. You either choose to work with me or you don’t. Facts are still facts and I’ll be happy to help you any way I can.

Feel free to leave a comment below or contact me direct.

Lauri Beamish   408-313-3270  or lauribeamish@gmail.com

Get free reports, advice, etc. at my website: http://www.siliconvalleyrealestateonlineinfo.com