"Before Tim Larkin"

When you, as a real estate investor sells to a sociopath, this is what all the investor teaching gurus don’t tell you.

Not every “vanilla” real estate deal comes out “sweet”.

Five yrs. ago I sold my mobile home on an installment contract to a man named Timothy M Larkin. Due to the mobile needing some work, I sold it “as-is” at a discounted price. Mr. Larkin had just split with his family and wanted to stay close enough to spend a lot of time with his daughter, but could not get financing due to an IRS lien. His lawyer wrote me a letter stating that the lien would be cleared up with in the next year, and other than that Timothy M Larkin had a pretty good credit report.

I thought this would be a “win-win” for both of us. I agreed to carry the paper with 10% down at the current market rate, amortized over 30 yrs. due in 5. This kept the payments affordable for Mr. Larkin and would provide a monthly paycheck for me. That’s one of the things the real estate gurus preach. “Buy a bunch of houses with a positive cash-flow and build your wealth.”

At one point about a year and a half into the contract, he paid me $35000.00 of what was owing, and I gave him credit for over $47000.00. Once again, a win-win. Supposedly during this time he had also remodeled.

In the meantime, he harassed the lady across the street from him so much, he finally got her removed from the park. She was a little crazy, but not dealing drugs as he had claimed every time he called the police out there. He had also encroached on the next door neighbors lot so much that she couldn’t even use her driveway. She put her mobile up for sale. The people directly across from him who had had that mobile for years, he harassed them so bad about painting the outside of the mobile, they painted, and then put up a for sale sign in their window. He demanded the owner of the park remove another mobile across from him, and when the owner had it all set up to move it, Mr. Larkin declared it was a health hazard, and stopped the whole thing! Through all of these things I should have gotten a clue as to what type of person Timothy M Larkin was, but nothing prepared me for what came next.

First he had a lawyer write me a letter trying to claim fraud when I sold him the mobile home and I should give Mr. Larkin the mobile home and all of his money back. Luckily I am a very good Realtor, trained by two ladies that dotted every “i” and crossed every “t”, so needless to say that letter didn’t lead to anything. I had offered to sell him his note for a discounted price, and instead of negotiating, he just quit paying. I had to file a Notice of Default to get the back payments. After that it was as if I had to file a NOD to get almost every payment.

The park is now in flux. The owner wants to convert the mobile home park to condos. He’s been fighting for a while now, but has lost each fight as the park fills the City’s need for low income and senior housing. If you live in the park full time, it is rent controlled and the space rent is quite low.

The contract was going to be up this Feb. 2011. I really thought that he would renegotiate for longer time or try to buy out the contract at a discount. Instead, with a balance of over $88000.00 owing, all he offered was $10,000.00 and instead chose to go through the foreclosure sale. I haven’t been able to get inside yet, but he’s out and I did get some pictures from the outside. Timothy M Larkin chose to totally gut the place of everything that was in it leaving me with the shell. While I half expected as such, my boyfriend when he saw it was just devastated. He just kept saying “How could somebody with any kind of conscience do something like this? This man’s an animal!”

This is what happens when you as a real estate investor meets a sociopath. This doesn’t even touch on all of the time taken to do paperwork, etc. because he had no integrity and didn’t keep his end of the bargain.

"After Timothy M Larkin"

Disclaimer: I don’t for a fact know that Mr. Larkin has ever been diagnosed as a sociopath. I only know he appears to have no conscience for his actions toward other people.

Capitola Mobile home 4 sale

Due to a default by Tim Larkin, the man who was purchasing my mobile home, I will be auctioning/selling to the highest bidder for all cash, cashier’s check drawn on a local bank, or other terms acceptable to me, a 2 bedroom, 1 bath mobile home located in the Surf and Sand Mobile Home Park in Capitola, CA.

The actual address of the mobile home for sale is 750 47th Ave., Space #12, Capitola, CA. 95010. The sale shall take place in the Surf and Sand Mobile Home Park parking lot, in front of the park clubhouse. The sale shall be held at 10:00 AM.

The amount currently owing is $88,717.00, the sale to be made in “As-Is” condition, but without covenant or warrant, express or implied, regarding title, possession or encumbrances. It is possible that the opening bid at the time of the sale may be less than the amount due.

If for any reason clear title cannot be conveyed, the successful bidder’s sole and only recourse shall be a return of monies paid to Lienholder (me) with no further recourse.

What I personally know about this mobile home and the Surf and Sand Mobile Home Park

This mobile home park is within walking distance of Capitola Village, located near the intersection of 47th Ave. and Cliff Dr. It’s a very beautiful area and a very desired location. The mobile home residents and the City of Capitola have been battling the current park owner to avoid a conversion of the park.  It is currently rent controlled by the City for residents that are living there full time, from what I understand. Here is a link to the latest article published in the newspaper that I could find that tells of the latest battle.

I have not been inside the mobile home since selling it to Mr. Larkin almost 5 yrs. ago. While he said he has remodeled the mobile home, I have no way or knowing what condition it is currently in, or will be in when he leaves it.

If you have any questions you may contact me, Lauri Beamish at 408-313-3270 or email me at lauribeamish@gmail.com

A lot of us are still smarting in this less than ideal economy. Many who have lost jobs and homes are just starting to get back on their feet, many others aren’t there yet. Raising three children as a single mom there were many times I had to find things to do with my kids that didn’t cost much or were free. So in light of the economy, I have made a list for you of  Free Christmas events for Bay Area Families (Santa Clara,  San Jose, Mountain View).

#1. This is short notice, but if you have a child and are a resident of the City of Santa Clara, you can arrange for your child to get a letter from Santa. Just have your child write a letter of requests to Santa and either mail, or drop off to the Community Recreation Center, Teen Center or Youth Activity Center in Santa Clara. The deadline for postmark is December 10th. Your child will receive a response by Dec. 21, 2010. Don’t worry. No promises will be made. LOL.

#2. Annual Tree Lighting Ceremony-Dec. 3, 2010  6:00 pm-7:30pm Corner of Civic Center Drive and Lincoln Avenue in Santa Clara

This year’s celebration will include live music, twinkling lights and festive decor, complete with cookies for the kids and hot coffee for the grown ups. Hot dogs, chips and drinks will be on sale to enjoy while awaiting the arrival of Santa Claus. Bring your camera to take your child’s photo sitting on Santa’s lap!

The event is free and open to the public. Please remember to bring a canned food item for Second Harvest Food Bank if you are able.

#3. Mountain View Tree Lighting Ceremony

Monday, December 6, 2010
5:30 p.m. to 7:30 p.m.
Civic Center Plaza, 500 Castro Street
Celebrate the holidays with friends and family at the Mountain View Tree Lighting Celebration. Enjoy live holiday music, refreshments, lights and the arrival of Santa Claus. Children can visit and have their picture taken with Santa at the free event. In the spirit of the season, guests are encouraged to bring a can of food to help build the giving tree, to benefit the Community Services Agency.

#4. Christmas In The Park is now up and open to all until January 1, 2011. Hours are 9:00 AM until Midnight daily. This may be the last year if they don’t raise some money to keep it open in the future. Located at Market and Santa Clara Streets in downtown San Jose, a Christmas display not to be missed.

#5. San Jose 29th Annual Christmas Parade- Dec. 5, 2010 8:30 am
Santa arrives at 3:00 PM
Starts at Market and  Santa Clara Streets in downtown San Jose
Voted one of the top 25 parades in the US

This year’s theme is “Toys, Treasures, and Traditions” and Minnie Mouse will be the Grand Marshall.

#6. Bethlehem- A walk through the Christmas story.

Dec. 9th through 13th (2010), from 6:30 to 9:00 p.m., at Santa Clara First Baptist Church, 3111 Benton Street, between Kiely Blvd and Lawrence Expressway.

For the thirteenth year, the ancient town of Bethlehem is being re-created in Santa Clara on over 40,000 square feet with actual-size buildings and bridges. This is a free event, which attracted over 27,000 visitors the last 2 years.

#7. California Youth Symphony Free Holiday Concert
Sunday, Dec 12 2:30p to 4:30p   at Foothill College: Foothill College Smithwick Theatre, Los Altos Hills, CA
As a gift of music to the community, The California Youth Symphony, under the direction of Leo Eylar, presents a free holiday concert filled with seasonal and holiday favorites and includes a rare opportunity to hear a timpani concerto – Raise the Roof by Michael Daughtery – performed by CYS Percussion Director Artie Storch.

#8. HOLIDAY PUPPET SHOW- The Adventures of Zeet Nagley: Search For the Christmas Star

Date: 12/13/2010 6:30 PM – 7:30 PM Location: Central Park Library Redwood Room
2635 Homestead Road
Santa Clara, California 95051

After seeing a falling star land in the forest, Zeet decides it’s more important to get that star than to stay and help his robot friend, Dwee-Dow, decorate a Christmas tree.  Leaving his friend behind he soon encounters numerous arctic creatures who claim to have been attacked by a vicious snow monster!  Each warn Zeet to turn around and go back!  Will Zeet listen to their advice?  Will he find the star before he too lands in the clutches of the snow monster?  Or will it all turn out to be just a big misunderstanding?  Find out as Zeet searches for the star, discovering so much more along the way.

Ages 4 and older only. No exceptions. Please make arrangements for younger siblings, as they will not be allowed into the program.
Length: 45 minutes.

#9. STORY SANTA @Mission Library Date: 12/15/2010 6:30 PM – 7:30 PM

Location: Mission Library Family Reading Center
1098 Lexington Street
Santa Clara, California 95050

Everyone is a believer after seeing Santa tell stories and visit with the children from the audience. Old and new stories are shared, with amazing papercuts and hand puppets. A delightful time is guaranteed for all.

Free. All ages welcome.
Length: 45 minutes.

Last, but not least to round out 2010,

#10. Countdown to New Year’s Eve Party Date: 12/30/2010 11:30 AM – 1:30 PM Location: Central Park Library – Redwood Room
2635 Homestead Road
Santa Clara, California 95051

Ring in the new year at our Countdown To New Year’s Eve Party! All ages are invited to celebrate 2011 a little bit early, with crafts and a countdown to Noon, followed by a family movie. You are welcome to bring your own snacks for the movie.

Length: 2 hours.  Ages: All ages invited to the countdown. Family movie is recommended for ages 5 and older. Children under age 10 must have a parent present.

If you know of any free events going on or any special neighborhoods that have a lot of houses with Christmas displays, feel free to ad them below.

I’m still getting asked quite often when people find out I’m a Realtor, “How’s the real estate market these days?” It really depends on why you’re asking what the answer to that would be.

If you’re really asking “Have we hit the bottom of the California housing crash?”, I would have to say I don’t think so, not yet. Millions of homes are still being foreclosed on, and despite what everyone says, banks are still not truly working with their customers. While working on loan modifications on one hand, the banks are taking the homes to the courthouse steps with the other.

If you’re asking “Should I sell my home now before it loses any more value?” I would say that this is the slow time of year to sell even in a good market. It’s true, your home may lose more value if you hold on to it going into 2011. As I said, I personally don’t believe we’ve hit market bottom yet. Right now rates are at an all time low, which allows more buyers to buy, giving the seller a larger market. Historically, around the middle to end of February rates start to rise knocking people out of the affordability circle. You also widen your market if you are willing to do a little ‘creative financing’ such as carrying back a note for part of the money you receive and having the buyer pay on an installment contract.

Last but not least, if you’re asking “Is this the time to buy a house?” I would say it’s a great time to buy if you’re planning on being in it for awhile. Unless you’re buying a fixer upper way below market and doing the work yourself, the days of flipping it right back out and making a huge profit are a little slower these days. If you buy a home planning to raise a family, or stay located in that spot for the next 5 to 10 yrs., opportunities abound.

You have the advantage of the lower rates, and this time of year most sellers who have their home on the market are sincere about really wanting to sell. The inventory may not be as large, but neither is the competition for the same house. Sellers tend to be a  little more negotiable when there aren’t any offers coming in.

If you’re just curious about what’s happening in your neighborhood because you’re trying to keep track of where you are financially, equity wise, I would be happy to give you a full report of the activity in your neighborhood for free. No obligation. Just remember, I only deal with the Santa Clara County, California area. I can be reached at 408-313-3270 or at LauriBeamish@gmail.com

Everyone knows the recovery of our economy is based on the housing market and job gains. Is it just me, or does it seem the government just keeps shooting the recovery in the foot?

First, the lenders put a short moratorium on foreclosures because of obvious fraud in the process. Then the FDIC’s Sheila Bair comes along and says she’s worried that law suits involving fraudulent foreclosure practices will take too long to get straightened out. Instead of fixing the problem by doing things the way they should have been done all along by law, she says to just offer the homeowner a 25% reduction (loan mod) in their mortgage payment and everyone goes on their merry way. It’s okay for these large lenders like B of A or Wells Fargo to be putting people out of their homes fraudulently. I don’t get it. How can that be okay?

The latest news in the Wall Street Journal is that Congress will be considering taking away the tax deduction for our homes to balance their budget by 2015. Why not just take away any incentive to buy a home at all?

Then we have the wonderful new SBA package that Obama signed this month. This great package to give loans to small businesses so they can grow and hire people. Great for everyone but the people that build new homes. Somehow the housing sector was “accidently” left out. This has a whole “ripple down effect” of it’s own.

The questions haven’t changed much in the last couple of years. Have we hit bottom yet? I don’t personally think so. We haven’t even felt the fall out of the commercial market yet. The last 2 months housing prices have slipped some more, and “they” expect another 20% slip through the next year.  I hope that’s all it is. Rates are the lowest in forever right now. This is a super time to buy if you’re planning on staying in your home for the next 5 yrs.

Is the housing crisis continuing in California? I think until we feel the full effect of the commercial market downfall, until people are hiring again, there are bound to be more slips in the housing market.

In the meantime, we need to get the government to quit shooting the recovery in the foot. I don’t think more taxpayer bankrolled bailouts are the answer.

If I may help with any of your real estate needs, please feel free to contact me.

Before you default on that mortgage, even though what you owe on your home may be more than the house is worth, you may want to reconsider.

We all know about the “subslime” loans, or liar loans as they are sometimes referred to. Most of those have reset and ‘Notices of Default‘ have been filed, or houses have already been foreclosed on. A lot of these were borrowers that should have never been able to get a loan to start with.

Then the next wave hits. The Prime A+ borrower through job losses or other hardships start defaulting. Last but not least, are the borrowers who simply walk away from their home because the debt is so much more than the house is worth now. Many borrowers tried getting loan modifications or a few other tricks under all the new laws that have passed trying to Make Homes Affordable, but all of Obama’s men just couldn’t put the housing market together again. Even though you would think it’s to their advantage, the lenders just are not co-operating the way all the “fixes” had intended.

Now consider this. Right now the interest rates are lower than they have been in decades, since the McCarthy era if you’re old enough to know when that was. Even if you default on your mortgage, you’re going to have to live somewhere, so you’re still going to pay. Now you pay rent instead of toward your own house. Now you’re under a landlord with their rules, probably a rent raise every year, no tax deduction, and you may get a 30 day notice on a landlord’s whim.

If you’re still in good standing with your lender and you’re just thinking about defaulting on your mortgage, why not just refinance it? Interest rates are low enough now you can probably get your house payment down to what you would have to pay in rent somewhere else.

I’m not going to lie to you. In my opinion it’s going to take years for the housing market to recover, but in that time wouldn’t you rather have the tax deductions and perhaps build a little equity for yourself rather than give it all to a landlord? The best place to start is with the lender you have now. They should prefer to refinance your debt than deal with another default. Of course banks never seem to get a gold star for good business sense, but it’s worth a try. Depending on how much “under water” you are, you may need to shop around. The banks should be a little more co-operative on a refinance than on a loan mod or a short sale.

For the next five years you’re going to be living somewhere. Doesn’t it make more sense to keep as much of your money in your own pocket as you can? And if you refinance you don’t have to deal with all the credit ramifications, etc. that come along with a foreclosure.

So, before you default on that mortgage, you may just want to reconsider.

If I may help you with any of your housing needs, feel free to contact me at 408-313-3270

Making Home Affordable, Pt. 3- HAFA. What is it and who can benefit from it?

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?

I spoke before about the HARP part of the Making Home Affordable program. As promised here is part 2, the HAMP part of the program.

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, HAMP, and HAFA are three government programs that could be saving homes in Santa Clara and nationwide. They were set up to help homeowners in distress. They are all part of the “Making Home Affordable” program. Unfortunately, a lot of people in trouble don’t know all their options so these programs have not really been fully utilized. On top of that the guidelines in the first of the programs seemed a little vague and the lenders were not really ready to play ball when the programs rolled out.  Over the next 3 days I’ll go over each in detail. Today we’ll start with HARP.

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.

You would think you couldn’t tell much difference the way the cities flow together one right after another along the Peninsula, but I love living in Santa Clara. I actually lived in the city of Santa Clara about 30 yrs. ago, not too far from City Hall, but didn’t really appreciate it then.

Unlike San Jose with such a vast area and so many people, Santa Clara has been able to maintain that “small town” feel. Since moving here last October I have received “quarterly reports” on how the City is doing. Guides on City services available, activities, etc.  I love the fact that the city of Santa Clara has it’s own electricity vs. going through PG& E. Thank goodness the people saw through that proposition on the ballot last June!

Santa Clara is a great place for Seniors. They have a beautiful new center and if you are over 50 yrs. old it costs nothing to join. Due to budget cuts they have had to cut back on some of the hours that it used to be open, which is really a shame. I think they could probably charge a small yearly membership fee and they would still have plenty of people wanting to join.

The city of Santa Clara also seems intent on reminding people to support their local businesses. Obviously there is a method to their madness, more revenue to the City, but it’s still great for the small business owners in the area.

Santa Clara feels “clean” and safe to us since we’ve been here. We live in a rental neighborhood and we all know how bad some of those can be. I’m sure Santa Clara has some parts of it that are worse than others, but I have to say that I very much enjoy the beauty and the feeling I get living in our area. We have my mother with us also, so naturally I have to be concerned about her safety as well. Around here it doesn’t seem to be a problem.

To see if you also would love living in Santa Clara, feel free to contact me by phone or email any time.