Blogging Tulsa Real Estate

Did I commit fraud on my mortgage application?"

Sun, 03 Jul 2011 13:44:48 -0400

When buying a home, it is very important to stay in close contact with your mortgage lender and ask them whether or not a certain action will alter the status of their loan application.

It may adversely affect your mortgage application if you change jobs or even pay down your credit cards while waiting for your home to close.

Large bank deposits must be corroborated too.

Don't even think about buying a car or any big ticket items on credit. In fact, put away the credit cards until after closing.

Don't buy a thing for the new house until after closing.

Eat beans and corn bread! Peanut butter sandwiches can be awesome during this period.....

Here's a blog that explains how an innocent situation can turn into a huge problem.

Via Karen Burket-Bank of Oregon Home Loans Conventional, FHA, VA, mortgages (Bank of Oregon a division of Willamette Valley Bank ):

Did I commit fraud on my mortgage application?

I was having my weekly meeting with a circle of Realtors this morning and some discussions were going around with regard to potential buyer fraud during the course of the transaction. After our meeting, I forwarded this blog post to all of the agents who were involved in this discussion. Because of the timing, I thought what better time to repost this here.

Did I commit fraud on my mortgage application?

It came to my attention recently that it appears many folks possibly aren't being coached or taught properly as to what you, as the borrower should be, and more importantly, should NOT be doing, before, during and after the mortgage application process. In this post, let's get into some important information with regard to potential fraud on a mortgage application.

It's important for borrowers to understand that any change they make to their current credit, financial, or employment picture could very well have a negative effect on their ability to secure the financing they are seeking. I'm sure the last thing that any borrower wants to hear is that several weeks into the lending process, their loan was declined due to lending policies and protocol they weren't even aware of.

In light of this, I'd like to offer the following in hopes this will save anguish and grief to those who may be seeking to obtain a new mortgage loan and want to avoid any potential fraud with regard to the mortgage application.

I just recently spoke with a potential client who was unable to secure financing with the lender she had been working with for the past few months because in this case, her employment status had changed. Just weeks before the close of escrow date on the purchase, it was learned that this borrower had gone from being a salaried wage earner, to now being self employed. You may ask yourself, "So, what's the big deal? If there's still a job, why can't the bank still lend the money?" The answer to that may not be as simple as one would think.

In this case, the client remained in the same line of work. So simple, right? Actually, no. The typical rule of thumb when lending to a self employed individual is that the lender will want to evaluate two years worth of tax returns in order to determine income eligibility. So in the above case, because this client just recently put themselves on a self employed status, of course, there aren't tax returns available to determine what newly self employed earnings even exist. Again, you may ask yourself "I don't understand the problem. If the client is in the same line of work, and they've been doing that job for a significant period of time, why won't the bank lend the money?" Well, let's look at it this way.

Let's say you are a baker for a local grocery store in their bakery department. At the beginning of your loan application you provided your mortgage lender with current pay check stubs and your W-2's for the previous two years. So, sometime during the mortgage approval process you think to yourself, "heck, I'm one of the best bakers here at the bakery, I bet I can make more money selling my cakes and cookies on my own rather than just working for the bakery department!" While you may be the best cookie and cake baker out there, merely having the skills to bake a cake, doesn't necessarily mean one has the ability to run their own business. There are licensing requirements, food safety and health issues, and all of those things would currently be on the shoulders of the grocery store. That is their liability issue, not yours as the employee. So, from a lender's point of view, they have no way of knowing or verifying how well this business is going to succeed, since there is no documented history of it. Make sense?

So, with regard to the actual client I cited. After they understood the "why" obtaining financing would be most impossible due to the newly self employed status, I offered suggestions as to how we could possibly proceed in still obtaining a loan approval, providing they went back into a W-2 status. The lender would require a very good letter of explanation regarding this. In this case, unfortunately, the client wasn't willing to proceed as per my suggestion. Instead, they gave me reason to believe (verbal information they provided to me over the phone) that documents could in essence be "manipulated" to indicate they were still salaried. They wanted no one to be the wiser they were really self employed.

So, several problems occurred because of this. Falsifying of any credit documents or providing misleading or false information on the mortgage application can be flagged as fraud. Regular pre-closing and post-closing audits are conducted on mortgage files. Should an audit determine fraud on the mortgage application was involved, not only could the lender call the note "due and payable", but parties involved in the transaction could face prosecution.

Consumers should also be aware of that many lending and bank institutions' employees are required to report any suspicious activity through the SAR (Suspicious Activity Report) or similar, reporting system.

I believe it's the goal of all lending institutions and their employees to make the mortgage process as easy and seamless for all parties involved, and I believe the best way to achieve that is for the borrower to be educated in what's involved. In addition, I feel it's important for the lending professional to successfully coach their clients as to potential pitfalls that may occur during the process, or even after the transaction has closed.

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Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

5 Reasons You May Not Want to Counter That Offer

Sun, 19 Jun 2011 22:29:33 -0400

The emotions that accompany an offer to purchase a piece of property are best set aside. That having been said, many buyers make a decision when they make an offer to accept, counter or walk away if the sellers counter their original purchase offer.

Sellers need to be aware that buyers may walk away and buy the house down the street if the offer is not accepted.

The exception to this occurs when a unique property is in question.

Via Tni LeBlanc REALTOR® Santa Maria CA Homes Central Coast:

5 Reasons You May Not Want to Counter That Offer

It never hurts to ask, right? How many times have you heard that expression? However, as a real estate agent, I have a front row seat and back stage pass to home buying and selling action, and I can say with absolute authority that -- sometimes it does hurt to ask. Countering a buyer’s price and terms is the equivalent of asking. And there is risk in doing that. When you are selling a home, here are a few reasons you might want to rethink countering a buyer’s offer:

1) It’s a fair offer. The offer is fair and it hits your target. What more could you want? A little more you say? You may want to resist the temptation to ask for a little more. Just because a buyer offered you what you want up front doesn’t mean there is more meat on the bone. The buyer and their agent studied the market before writing the offer and they probably reviewed the same comps you and your agent studied. They know they've written a fair offer -- it didn't happen by accident. If you counter their fair offer, they may think you are going to be unreasonable throughout the transaction, give up, and simply walk away. Think twice before countering a fair offer.

2) It was prepared carefully. As an agent I know presentation matters. You may not be able to determine whether an offer is well prepared, but your agent will know. In my opinion, a well prepared offer leaves out unimportant requests, and includes every single piece of information necessary to make a decision. A good buyer’s agent is going to counsel their buyer about how to make a good offer, what to leave out, and what to include -- and a serious buyer will listen. When I receive a well prepared offer, I not only know that the buyer is serious, I know that they are worth taking seriously. Think twice before countering a serious buyer with a well prepared offer.

3) You will interfere with the buyer’s momentum. Yes, there is a momentum to the home buying process. You may have forgotten that if it has been awhile since you bought a home. Countering can put a kink in momentum -- and it can kill the enthusiasm of a buyer. Especially in today’s market where they must withstand a whirlwind of negative news reports, the opinion of their family, friends, (and sometimes their agent), as well as hurdle through the current invasive loan pre-approval process in order to write an offer. Countering can sometimes feel like a road block to a buyer who has already navigated an obstacle course. Think twice before slowing a buyer’s momentum with a counter offer.

4) The market is declining. This has to do with leverage. If the market is declining in your area, the buyer is aware of that fact as well. So, they may be absolutely insulted that anyone would counter any offer they make in that type of environment. You simply may have no leverage in your current market. This is true even on a short sale -- if the market is declining and the offer is reasonable -- it is sometimes better to let the bank do the countering, if they choose to do so. Think twice before countering in a declining market, lest you find the value of your home declining with it.

5) A counter is a rejection and some people don’t take rejection well. This reason is almost completely emotional and psychological. Simply put, not every buyer is up for a nice spirited game of negotiations. You might return that serve to find that the other player has walked off the court. Some people just can’t handle rejection. Other people like to be in control. And, some people just don’t like to play what they view as “a game.” I’ve found that there are people who will never ever respond to a counter offer. They typically “don’t do bidding wars” and they “don’t do counter offers” either. Think twice before rejecting that offer with a counter.

Every situation is unique, and the decision of whether to counter an offer should reflect both the current market for your home and the particular offer that is presented. However, I do believe that the decision to counter an offer should not be made lightly. At a minimum, you should think twice.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home, you should seek out an experienced Central Coast Short Sale Agent to guide you through the process. If you would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Copyright© 2011 Tni LeBlanc *5 Reasons You May Not Want to Counter That Offer*

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

Sellers: Time to list? Avoid mixed messages!

Sun, 19 Jun 2011 13:58:49 -0400

I sell homes in and around Tulsa, Oklahoma.

There has never been a better time to buy a home, and so if you are thinking of buying another home, let's get you out of the one you are in by pricing it correctly and making it appealing to buyers.

When you list with Coldwell Banker Select, we'll send a professional interior designer to your home (at our expense) to advise you on how to stage your home so that it will appeal to buyers. She'll help you see things from the buyer's eyes and even help you choose new paint colors.

I can recommend people who can help you with the condition of your home if it needs repairs to make it marketable.

As a former certified records manager, I can advise you on how to tackle your clutter and begin boxing up what is not essential in order to help your home look larger and more presentable.

Remember "the Four C's"

Cost
Color
Condition
Clutter

If we keep them in mind, then we can get your home ready for sale and position it in the market where it will sell and not just be listed.

To get more information about the Tulsa real estate market in your area, go to: Tulsa Market Snapshot .

Then call me and we'll evaluate the market together and get your home ready to be in a great position to sell.

Here's more on the subject:

Via Charles Edwards Bentonville,AR REALTOR Bentonville real estate agent and broker (Century 21 EXCLAMATION Rogers, AR 479-253-3796 ):

When it is time to list a property there is one thing I make clear to sellers. NO MIXED MESSAGES! It sounds simple but somehow it is not always. Does everything about your plan say YES! I REALLY want to sell in a reasonable number of days. Yes I said days, not months and certainly not years! Selling takes a real life, carefully planned strategy.

Have you done the proper maintenance inside and out? Is your home looking SHARP all over. Don't forget the check list: the yard and the garage, fresh paint, clean carpets, no trace of pet damage or odor, etc.

Have you priced your property according to the current market conditions, the size of your home and the condition of your property? The local numbers do not lie! Do not be taken in by promises of unreasonable gain in a down market.

Have you checked out the competing listings nearby? Yes there are a few homes for sale near you. Inventory is high so it's GAME ON! You are in a serious competition to make a sale!

Is your property ready for showing without DELAY?

If you are not ready to eliminate mixed messages rethink your decision to list. Make your decision and get the deal done in the shortest amount of time with the fewest hassles. No mixed messages to potential buyers.

I'm here to sell, not just to list your home.

Proudly serving your real estate needs in Bentonville, Rogers and Eureka Springs, AR 479-253-3796. I will provide a free market value analysis of your property. Just ask!

cedwards@ersells.com

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

The View From Both Sides – Seller or Buyer

Mon, 16 May 2011 09:29:48 -0400

Buying and selling a home can be very emotional and stressful.

Once a contract is signed and the period of due diligence begins, the buyer has the right to enter the home with qualified professionals to determine whether or not they need to amend the contract in any way based on what is discovered regarding the condition of the home.

Issues regarding the cosmetic condition of the home are irrelevant after a contract is signed.

If a homeowner allows a buyer into their home to select paint colors, measure for new drapes, etc., then they are just being nice and helpful.

It is part of the real estate agent's job to manage everyone's expectations.

Here is a look at the situation from both the seller's and buyer's perspective.

A bit of compassion for the other side of the deal goes a long way.

Via Karen Crowson, Livermore, CA (Alain Pinel Realtors, Livermore, CA):

The Seller’s Point of View
You are leaving a house you’ve called home for a number of years. You’ve been asked to move out your personal belongings, so the place hardly seems cozy or familiar anymore. You’re exhausted from keeping the place spic and span – show-ready at a moments notice.

Keeping after the kids and all their stuff is a job in and of itself, and being displaced repeatedly on weekends for open houses and showings is becoming quite annoying.

You’ve taken good care of the house for such a long time, and it finally paid off. You have an offer, and you and the buyers have come to agreement. But now it seems that the buyer ordered every inspection known to man, and was very aggressive in asking for one repair after another. Figuring all of that out means more people traipsing through your house, poking, prodding and who knows what? It’s very disruptive – you have so much to do to get ready for this big move!

They want to measure, photograph, match colors, re-visit – these extra visits are making you crazy! This house is so nice – close to perfect even! Why do they need to change everything? Isn’t it good enough for them – especially since they got it for such a screaming deal?

Enough already – can’t this all just wait until they own the place?

The Buyer’s Point of View
We’ve looked at a lot of homes. We’ve seen some in fabulous condition, but they’re too far from everything. This one has a great location and even though it’s had some nice updates to the kitchen and baths, there’s still a ton we have to do. The carpet’s worn. The paint colors are dark, and splotchy. The yard is very overgrown, so we’ll need to deal with that. And the heater and AC are old. We’ll no doubt have to replace those very quickly.

We were able to negotiate the price a bit, but we still have a lot of money to spend getting the place up to date. After all, the home we moved from had everything brand new. This feels like a bit of a step back, but this is where our job has taken us.

We could see quite a few ‘sins’ cosmetically and we were ok with those. But boy, we didn’t expect some of the things that came up as a result of the inspections. We still want the house and with the seller willing to make some concessions, we’ll put in a little more cash to make those other repairs as well.

But we’re getting a bit stressed out. There is some reluctance on the part of the seller to provide access to the house. We understand that they are packing to move, but the boxes and chaos doesn’t bother us. We have a big job ahead of us, and getting estimates and measurements helps us figure out what we can actually do right now, before move-in date.

With two little ones, it’s really hard to have any type of construction work after we move in. And we’re concerned about the dust and paint fumes a baby might breath in. Don’t they know how hard it is to move into a house, and then have to move everything back out so contractors can do their work? We only have a short window to get everything done while we have time off from work.

Why do they seem so concerned that we’ll be making changes to the place? After all, it will be our house soon.

You can see that both sides have legitimate concerns in this often stressful and emotional time. While difficult, understanding the situation from the other party’s perspective, will often help ease the tension. Usually, those sellers will soon be buyers, and one day, those buyers will be on the selling side.

Isn’t it good to know that most escrows are over in 30-45 days?

Tri Valley real estate for buyers and sellers. Search for homes in Livermore, Pleasanton, and Dublin.

I can also help you in the surrounding areas of Alameda County and Contra Costa County

including Castro Valley, San Leandro, San Lorenzo, San Ramon, Danville, Brentwood and Mountain House

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

A Short Sale is a Fire Sale ... without the Fire

Thu, 21 Apr 2011 10:56:26 -0400

A couple of years ago, my company began sending out a single-spaced list of distressed properties for use by agents in our company. It is a list of short sales and bank-owned properties and in November of 2008 it was about 12 pages long. I would watch it and noticed that occasionally it would drop down to 9 or 10 pages in length. Over the past two years that list has stayed around 12 pages long.

It's been a couple of months since they sent me the list and so yesterday I actually took a glance at it.

The list is now 19 pages long!

That tells me that the shadow inventory has definitely hit the market.

Forget about selling your Tulsa home if you don't have to. There's no way an average homeowner can compete with foreclosed homes and short sales -- unless you have an exceptionally unique property.

I can help you. If you have not made a mortgage payment in a while or are in danger of missing your payments, please call me.

I can help you sell your home by doing a short sale. It's much better than letting your house go back to the bank.

Via Judy Chapman (Koenig & Strey Real Living):

When it looks like you’ll lose your house to foreclosure, would you stand idly by and watch the bank take your home out from under you?

Or would you try to fix the problem? Apply for a loan modification? Borrow from a family member? Or when all else fails, do a Short Sale?

Because a Short Sale is just like a fire sale, but without the fire.

Keep the home fires burning

Negative equity has overtaken the American real estate landscape. What started out as an isolated problem — owing to subprime loans and irresponsible lending practices — has escalated into a full-scale crisis affecting one in four homeowners.

Think about that for a moment. One in four homeowners is underwater. One in four homeowners owes more on their mortgage than the house is worth. One in four homeowners is scared of losing their home if, for some unforeseen reason, they can’t meet their monthly mortgage obligation.

Out of the frying pan and into the fire

When you purchased your house, you counted on it increasing in value the way real estate has done for decades. You knew that if you had to move on due to illness, job change, income loss, or any other reason, you could sell your house and start over someplace else.

Then everything changed. You became a prisoner in your own home ... under house arrest.

Baptism by fire

You probably purchased your house when the market was on fire with overblown values. Just a few years later, when the fire started to consume itself, you were helpless to do anything about it.

Now you’ve fallen victim to circumstances beyond your control. Except you do have control. You can sell your house as a Short Sale. With a Short Sale, you can —

Sell your house and start over.

Avoid foreclosure.

Completely eliminate or substantially reduce your financial liability.

Minimize damage to your credit rating.

Purchase another house in 2 years.

Take care of the problem responsibly.

Doing a Short Sale isn’t for the faint of heart. Nerves of steel, constant diligence, and endless patience are required. In the end, when the sale goes through, it’ll be worth the extra work and those sleepless nights.

Fight fire with fire

A Short Sale should be treated just like any other house for sale. By not skimping, shortchanging, or selling short the home or the homeseller.

Your home should be marketed the same as a regular listing. Sellers deserve no less for the house they call their home. Likewise, buyers deserve no less for the house they want to make their new home.

An aggressive pricing strategy should be applied. Homeowners facing foreclosure don’t have time to wait. Once the house has been listed at a price reflecting current market value, it should never be allowed to stagnate. If the house doesn’t immediately generate interest, the price should be lowered. And lowered again and again until a buyer comes forward with a strong enough offer. Usually this process takes no more than a month or two.

Short Sales are really long sales. Getting a contract on your house is not the problem. Getting your bank to approve the Short Sale is another story. This is where the steel, diligence and patience parts come in.

Light your house on fire

When you find yourself leaping out of the frying pan only to land in the fire, it’s time to yell, “Fire!” So do it. Get it out of your system. Then do something about it.

Related Websites and Articles

U.S. Homes Lost $1.7 Trillion in 2010

30% of Mortgages are Underwater

* * * * * *

JUDY CHAPMAN |What can I do for you?

Residential Sales ∙ Short Sales ∙ Residential Rentals

Koenig & Strey | 1925 Cherry Lane | Northbrook, IL 60062

Judy@JudyChapman.net | Office: (847) 521-4111

© 2007-2011 www.activerain.com/blogs/NorthShoreChicago by Judy Chapman. ALL RIGHTS RESERVED. Portions of this content may be used with attribution. The information contained in this blog is the author’s own opinion and does not reflect the opinions of Koenig & Strey Real Living.

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

You Can't See What You Can't See! Get A Pre-drywall Inspection!

Mon, 18 Apr 2011 12:01:30 -0400

If you are building or remodeling, it is important to hire someone to check things out before the drywall goes up.

This story tells how a mistake was made in putting in an air duct. Had the problem not been found before the drywall went up, then the homeowner would have had unusually high heating and cooling bills while having an unusually warm (or cold) bedroom.

Via Jay Markanich (Jay Markanich Real Estate Inspections, LLC):

Should you get a pre-drywall inspection on new construction?

YOU CAN'T SEE WHAT YOU CAN'T SEE! GET A PRE-DRYWALL INSPECTION!

The drywall was to go up that afternoon. At the last minute someone found MY ACTIVERAIN BLOGS on pre-drywall inspections. After reading some she was convinced she should get one.

Smart girl!

One teensy thing found was that a hole was cut to run a flexible HVAC duct and put a register in the master bedroom above.

The problem was, running it to this side would have put the register right in front of the sliding glass door to a third-level balcony.

Deciding against that, they decided to go out the other side. That duct is clearly visible in this picture.

BUT SO IS THE HOLE THEY CUT TO RUN THE OTHER DUCT! THEY SIMPLY LEFT THE HOLE!

The supervisor told my client that he had the drywall company scheduled to install drywall that afternoon. And for him to change that schedule, his words, "that inspector needs to find something really important."

This hole not only would have delightfully heated and air conditioned the ceiling space above the mid-level hall and stairwell, but would have dramatically reduced the air flow to the master bedroom! She would have had to live with it because they would never have figured it out.

I told her that when she brings this up with the supervisor, he would say he knew about it all along and it was already on his list. I also told her that it needed to be repaired with sheet metal screwed to the duct and sealed with aluminum tape. AND THAT SHE SHOULD GET A PHOTO OF THE REPAIR TAKEN FROM THE VERY SPOT THIS PHOTO WAS TAKEN FROM!

I can just see them spreading duct tape all over this to "seal" the hole!

My recommendation: my client had been told many times that she did not need a pre-drywall inspection. That the construction supervisor was in her house every day checking EVERYTHING that was being done. That the County would be doing "many inspections." She was told that so many times she almost bought it. Until her nagging feeling got the best of her and she called me. We did this very early in the morning. When she called she needed an inspection right away. Really early was the only slot I could give her! So we made it happen.

I'm glad she did! So is she.

DON'T EVER BUY THE LINE THAT IT IS A NEW HOME AND INSPECTIONS ARE NOT NECESSARY!

Jay Markanich Real Estate Inspections, LLC

Based in Bristow, serving all of Northern Virginia

www.jaymarinspect.com

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

Obeo Tour With Style Designer -- Tulsa Condo near Joe Creek Bike Trail

Fri, 28 Jan 2011 04:43:21 -0500

This Obeo Tour has a style designer that let's you select colors for your walls, floors, trim, etc. Play around with it and let me know how you like this feature.

This property includes upgraded appliances, including a stacking Bosch Axxis washer and dryer, a GE Triton XL dishwasher, a GE Spectra range with a self-cleaning oven, an Allure vent hood, and a GE refrigerator with an electronic ice maker.

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

"Oh, They Didn't Need You. The County Did The Inspection"

Thu, 27 Jan 2011 15:32:01 -0500

This blog and the accompanying blog in the hyperlink to this house beautifully illustrate why homebuyers should hire a home inspector.

I recommend using a PE (Professional Engineer) to look at structural issues.

The purpose of the home inspection is to discover whether or not you want to stay in the deal, not to have the home rebuilt prior to closing.

Read this blog and chase down the hyperlink. You will be shocked!

Via Jay Markanich (Jay Markanich Real Estate Inspections, LLC):

How do I approach this post?

Unbelievably I was called and scheduled to inspect this house.

When I had looked at it previously I did not know the Flipper, but I did know, from reading the sign, that the house had been purchased by and was being remodeled by one of the local Counties. It was then to be "sold" to some family unable to purchase it without some form of assistance. What disgusted me when I saw it previously was that the Flipper was an unbelievable con artist and that some poor soul was to live in that house.

It turns out that "poor soul" was going to be my client and I was chomping at the bit to inspect this place!!

Not knowing exactly when it was to be finished, the Realtor asked me to wait for a call to confirm the date.

THE CALL NEVER CAME. And being busy with scheduled inspections, I forgot about it.

Then yesterday the same Realtor called to schedule something different. Remembering this house, I had to ask about it!

"Oh, they didn't need you. The County did the inspection."

This is coming from a Realtor! I couldn't believe it!! "The County doesn't employ home inspectors. Who did the inspection?"

"The contractor who did the work. He walked them around showing them everything he did. The house looked beautiful! They were real happy. They are in it now. Since the inspection was FREE, we didn't need to call you."

Aggghhh! I have to say, my heart sank!

Here is a couple who CLEARLY doesn't know what they don't know. And they have bought a house!

And they are getting and accepting very bad advice from many sources!

They can't afford a house without assistance.

They have put their trust in the County, their Realtor and this schmuck contractor.

They have "bought" a house that was so unsafe outside, this home inspector was AFRAID to go inside!

They think all home inspections are the same, that a walk through is a home inspection and that it is FREE, so it must be a good deal!

They are so strapped they can't afford a home inspection. Then they CERTAINLY can't afford future repairs. And there will be future repairs!!

THIS is the crux of the sub-prime problem. We are still in it.

I have to say, honestly, that Mr. Jay is really, really, really tempted to send her a link to his blog about this house, but probably won't. No point in stirring that pot. I think the house will stir it soon enough!

My recommendation: if you ever, ever, ever feel like a home does not need a home inspection, ESPECIALLY if it was remodeled by a Flipper or "the County," call me so I can gently, quietly and politely PILE DRIVE SOME SENSE INTO YOUR HEAD!

OH, AND NOTHING IS ... FREE!

Jay Markanich Real Estate Inspections, LLC

Based in Bristow, serving all of Northern Virginia

www.jaymarinspect.com

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

The Oil & Gas Lease Is Available; You Can Buy the Lease

Thu, 27 Jan 2011 03:17:52 -0500

"The lease is available; you can buy the lease."

A REALTOR®-Associate in my company said this today in one of our land and ranch meetings while touting a lovely 269-acre parcel of land which I will be previewing later today.

I thought to myself, "That's pretty cool. Owning the oil & gas lease is the next best thing to owning the minerals."

Then I wondered if she really meant what she said.

Did she understand what she said? Did she mean what she said? Did she even know what she said?

[I kept my mouth shut in the meeting rather than interrupting and going off on a tangent -- since nobody really cared anyway except me (I am one of those about whom it is said, "There's always one in every group.....") However, I couldn't sleep. The distinction is important and I just cannot keep it to myself. I felt a blog coming on, so I got out of bed to write. So here it goes........ ]

When we own land, we don't actually own the land. We own a bundle of rights which includes the use of that land with restrictions.

When a landowner owns land in fee simple, that means he owns the full bundle of rights. Fee simple absolute or simply "fee simple" means that you own everything from the center of the earth up to where the government allows planes to fly.

As an owner, you can lease the entire bundle of rights to another person or you can lease a particular right. Thus you can lease the oil, gas and other minerals, you can lease the grazing rights, you can lease a cottage on the land (or just a room in that cottage), or you can lease hunting rights, etc.

If the mineral rights have been severed from the surface rights (meaning that a previous owner somewhere in the chain of title has retained the oil, gas, and other minerals in a recorded deed), then it is the owner of the mineral estate who has the right to lease the right to drill and produce the oil, gas and other minerals in and under the land. The landowner who only owns the surface cannot lease the minerals as the lessor.

However, the landowner who does not own the minerals can lease the minerals as a lessee. Usually it is someone other than the surface owner who leases the minerals (much to the dismay and sometimes anquish of the surface landowner). This is a pretty cool option.

Now, as someone purchasing a lease, it needs to be understood that a lease can and will expire. You can have a lease for 2 days or even 99 years -- but no more. You cannot own a lease in perpetuity.

Having said that, an oil & gas lease is valid as long as it is in it's primary term, be it 2 days, 3 years, 10 years, etc. This primary term is negotiated by a landman or an oil & gas attorney who is qualified to navigate the ins and out of such leases at the time that the lease is signed and purchased. A lease is a legal document that should be filed at the courthouse to have actual notice announcing to the world that such a lease exists. This is hugely important.

The lease is valid as long as it is in it's primary term or is held by continuous production. Oh, there is the kicker, continuous production. In other words, if you are the leaseholder (the lessee or the assignee), then you had best be drilling or producing oil & gas that makes it clear that you are actually doing something. This is technical and many leaseholders lose their lease after pumping milions of dollars into wells in the hopes of making them profitable, only to lose their investments of time, expense, and effort to someone else who picks up the lease at a later time. Boo hoo, so sorry, good bye.....

Now if the leasholder does not have an operator's license, then he must hire an operator to operate the lease. Only an operator can operate oil & gas wells. Anybody can own the lease, but they have to hire an operator if they themselves are not licensed to operate oil & gas wells. An operator is the only person authorized by the State of Oklahoma to do anything on an oil & gas lease. He must participate in every activity.

An operator can be a company or a person. An operator has a license number. In the eyes of the Oklahoma Corporation Commission Joe Operator is exactly the same as ExxonMobil and are under the same laws, rules, regulations, and restrictions. One operator is a single person and the other operator is a multi-national corporation. When either one comes on your land, they are exactly the same in the eyes of the State of Oklahoma. There is virtually no difference -- they are both operators.

An oil & gas lease can be sold or assigned to another person by means of an assignment or a bill of sale. Both of these should be filed at the courthouse as soon as possible to effect actual notice of assignment of the oil & gas lease. Again, this is hugely important. Race notice literally means that the first person to the courthouse wins. No kidding, I heard of one situation in Rogers County where a lessee was dying and needed cash to pay medical bills. He assigned the same oil & gas lease to six or eight assignees. The first one to file the assignment at the court house got the lease.

Of course, you can own a lease that isn't registered, but I recommend being safe. Toodle on down to the court house and get the documents filed.

Important note to self: Don't leave legal documents in the kitchen drawer. File them at the court house! Then put original documents in a safe place, such as a safe deposit box.

"The lease is available; you can buy the lease." I think she means that you can purchase an assignment. Or maybe she meant you can purchase the minerals from the owner of the mineral rights. I'll have to ask her.

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

Cap Those Faucets Before You Move

Sun, 09 Jan 2011 10:20:40 -0500

This article addresses a problem that I have seen in empty homes when doing inspections.

The faucet caps on the laundry faucets are a great idea.

I suggest adding a tiny ball valve to the refrigerator's ice maker tubing. Why it's not done when refrigerators are installed just baffles my mind.

It's a simple step for someone who knows what they are doing (i.e., a licensed plumber) to add a valve later. When the refrigerator is disconnected, it will stlll be there for the next family to use when hooking up their refrigertor's ice maker.

Via Tom Branch, Broker, CDPE, SFR - 214.227.6626 (RE/MAX Dallas Suburbs):

I've been meaning to write this blog for a while but I had forgotten about it. I was showing a home today and there was water everywhere in the laundry room at one of the properties. As I looked around I noted a small trickle at one of the laundry room washing machine faucets. The water was running down the wall soaking the sheet rock and puddling up on the floor. I made a quick call to the listing agent to let her know.

It reminded me of a listing I had had in Frisco. The owner had painted the house and put down fresh carpet so it would look nice and sell quickly. She had moved out of state and the house was vacant. It was a slow time of year and there were not many showings. I dropped by the house one day only to find the new carpet soaked in water! I traced the source back to a dripping laundry room faucet that day as well. Luckily we were able to have the carpet dried and suffered no real damage other than the several hundred dollar clean-up bill for the seller and several hours of my time making sure it was taken care of.

I used to recommend that sellers vacating a property cap off the laundry room and ice maker faucets. After that day, I started providing my sellers with the caps. I purchase them at my local hardware store and a set of three costs about $10. Not only is it an added service but it might just save the seller a bunch of money and myself a lot of time.

Cap those faucets before you move!

Photo Copyright 2010 - Imaged2Sell

Source: http://www.thebranchteam.com/wordpress/2011/01/09/cap-the-faucets-before-you-move/

Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.

Copyright 2009-2011 - The Branch Team
The Branch Team - Texas Real Estate Broker 547597 | Team Members are Texas Licensed Real Estate Professionals
Tom Branch - National Mortgage Licensing System 341963

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

The Gap Check Revealed a Demolition Notice on the Day of Closing

Sat, 08 Jan 2011 19:15:52 -0500

The gap check revealed a demolition notice on the day of closing.

It wasn't there when the abstract was updated in September. It showed up yesterday morning. We were closing at 3:00 pm.

We found out about it at the closing table.

A demolition notice had been filed by the City of Tulsa that very morning.

Who knew that a Demolition Department even existed!

Did you ever wonder what a gap check does?

The gap check is one of those items on a HUD Settlement Statement that I have always regarded as just another way for the closing companies and lawyers to make money. The typical cost of a gap check is $75.

I never paid a whole lot of attention to the gap check, but I will from now on.

The closer asked the buyer whether or not he wanted to proceed with closing.

Of course it was a Friday afternoon and no one seemed to be answering his phone. We kept trying to reach someone who could tell us what was going on.

The home was an REO and, of course, being sold "AS IS WHERE IS."

I was concerned that the buyer would be saddled with a bill for demolition, whether or not he wanted the home to be demolished. Fortunately, we were able to contact someone at the City of Tulsa.

It turns out that a citizen had called The Mayor's Action Line in September about a porch on the front of the house that was falling off. The code inspector had gone out to the home and had recommended the house be demolished.

Meanwhile, the listing agent listed the house and recommended the bank remove the offending porch, which was already removed by the time my buyer saw the property.

Neither the owner nor the real estate agent were aware of the code inspector's recommendation to demolish the house.

The bank that owned the property was paying three years of back taxes, but I thought they should pay for the demolition rather than my buyer. However, if my buyer delayed by choosing not to sign the paperwork, he would have to pay a $100 per diem charge.

In the end the buyer decided that he would go ahead and close and probably will be tearing the house down himself. That would probably be a lot cheaper than letting the City of Tulsa schedule the demolition and have a contractor do the demolition. A professional demolition crew would probably charge the owner more than my buyer was paying for the property -- which was not a lot.

The City of Tulsa stopped it's process of demolition and will be giving my buyer a chance to assess what he has purchased.

We closed. Yeah!!

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

Higher Mortgage Rates Spurred an Increase in Home Sales

Thu, 30 Dec 2010 13:28:46 -0500

Higher Mortgage Rates Spurred an Increase in Home Sales

Does this just blow your mind?

How is it that we have had historically low rates and have not been able to get buyers off the fence and yet now that they are creeping back up they are beginning to come out of the wood work?

Is it that spring is on the way?

Is it that people are snowed in and looking for something to do? So let's just go online to look for a new house?

Is it because they think housing has hit the bottom?

Do people purchase more when they think that prices are going up?

Check out this information from CNN Money.

Higher Mortgage Rates Spurred an Increase in Home Sales

Dec 24, 2010 (www.cnnmoney.com)

The recent surge in mortgage rates, by all rational calculations, should have made America's already troubled housing market worse off. Instead, higher borrowing costs modestly boosted homes sales in November. Before slipping down slightly this week, mortgage rates had risen for several weeks in a row as yields on 10-year Treasury bills, which largely influence the cost of mortgages, rose. The rate increases were some of the highest seen since June of this year.

Intuitively, it would make sense that higher borrowing costs would discourage potential homebuyers. And vice versa. But quite the opposite has happened. Before the recent surge, mortgage rates had fallen to historic lows but failed to spur much refinancing or home purchases as virtually all major banks tightened lending standards. When mortgage rates started rising recently, potential homebuyers waiting in the sidelines took notice.

In November, the share of home purchases by first-time buyers surged to 37.2% from 34.4% the previous month, according to a monthly survey by Campbell/Inside Mortgage Finance, which tracks mortgage and housing industry trends. "That's extremely significant," says Tom Popik, the survey's research director. Since the survey launched in 2009, there's typically only been a one-percentage point change, if any at all, among first-time homebuyers.

The higher rates seem to have served as a warning shot, drawing in buyers eager to lock in historically low rates before they edge any higher. In a sense, they were waiting for an uptick to prove that rates had gone as far down as possible, before deciding to buy. Unlike current homeowners, first timers are positioned well to respond quickly to fluctuations in mortgage rates.

Popik says it's unlikely the rise in rates will spur many more home purchases. After a while, potential homebuyers will again think mortgages are becoming too expensive. For now though, rising rates have brought a boost, however small, to the struggling housing market. November sales of new homes rose 5.5% to a seasonally adjusted annual rate of 290,000 units, the Commerce Department reported December 15.

Naturally, in response to the uptick in home sales and increase in demand for lending, mortgage rates have most recently . . . fallen again. Somewhere, that makes perfect sense.

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

How To Qualify For HAFA Short Sale

Sat, 18 Dec 2010 12:36:25 -0500

Twenty years ago after the Oil Bust in Tulsa, Oklahoma, when a homeowner could not sell his home for enough money to pay the bank off and pay all the expenses from the proceeds of the sale, the homeowner took his checkbook to the bank and wrote a check at closing in order to get rid of his house. Often the seller wrote a bigger check at closing than the buyer.

Things have changed. Many homeowners lack the ability to cover the equity shortfall in their home. They cannot write a check at closing to get the bank paid off and get on down the road.

To help homeowners in hardship situations, many homeowners are resorting to listing their homes with REALTORS® who understand how to do short sales.

It is a complicated process and it is not fast, nor are there any guarantees.

I have successfully represented both Buyers and Sellers through the short sale process.

The following is a description of how a homeowner qualifies for a HAFA Short Sale -- a particular subset of the short sale family of transactions.

If you have questions, please call me at 918-712-4473 or send me an email at dsolano@cbtulsa.com

Via Dave Gubler - Foothill Ranch, Lake Forest, Ladera Ranch and Mission Viejo (Orange County California Short Sale Specialist-IMLShortSale):

How To Qualify For HAFA Short Sale

First let's start by defining exactly what HAFA is:

The government's Home Affordable Foreclosure Alternatives program, or HAFA as it is commonly known may provide you with some relief. There are some hoops to jump through but working with an agent that understands the details and the process will ensure that you have an optimal chance for success. (There are 43 pages of guidelines associated with this program so please choose your real estate agent wisely!) Click Here For: HAFA Information Center

The three main benefits to you, the homeowner, are: (With respect to a Short Sale)

1. A formal timeframe to market and sell your home during which a foreclosure sale cannot occur. This, in my mind, is the main benefit. It will take much of the uncertainty and fear of foreclosure away from homeowners that are financially distressed and make it very probable that they are able to remain in their home longer than they otherwise would be able to.

2. A monetary incentive to assist you with relocation expenses. Although this is small, originally set at $1,500.00, it will help with the cost of relocating. It is presently set at $3.000.00.

3. Releases you from any future liability on the debt. This benefit has the most long-term benefit. It eliminates the lender/servicers ability to secure a deficiency judgment or promissary note on the loss.

HAFA is an alternative to the Home Affordable Modification Program (otherwise known as HAMP). To be eligible for HAFA the following criteria must initially be met:

1. Your lender/servicer must be participating in HAMP & HAFA: This can easily be established. You can look up whether your lender/servicer is participating in the government programs by following this link: Lenders Participating In HAFA

2. You must be HAMP eligible: What does this mean? It is fairly simple. All of the following must be true:
A) The home must be your primary residence.
B) Your mortgage must have been originated prior to January 1, 2009.
C) Amount owed on your 1st mortgage must be equal to or less than $729,750 (For a one-unit property).
D) Your current monthly mortgage payment exceeds 31% if your gross income.

AND ONE OF THE FOLLOWING MUST APPLY TO YOU: (Your lender/servicer is required to consider you for HAFA if the two stipulations above and one of the stipulations below are met)

1. You do not qualify for a trial period plan:   This is a bit trickier. Participating lenders/servicers have to analyze your further eligibility. The goal of HAMP is to provide a borrower with a loan payment (Principal, Interest, Taxes, Insurance, and HOA) of 31% of their gross income. This is the part that everyone knows about and it sounds pretty good (for most people)! Unfortunately the lender has an out. The bank is required to perform a Net Present Value Test (NPV Test) on each potential HAMP candidate. The long and the short of the NPV Test is this: If the bank will make more money by foreclosing than they will by modifying your loan (payment to 31% of gross income) then the bank is not required to offer you the loan modification. This is where many potential loan modifications via HAMP are stopped. Quite simply the modifications the bank would have to make (rate reduction, term extension, and principal forbearance) would make it more cost effective to foreclose. Please feel free to contact me regarding how the NPV Test is performed and what the components of it are.

2. You do not successfully complete a Trial Period Plan: This is fairly straight-forward. If you are offered a HAMP Trial Period Plan and reject it; you do not provide the correct & complete documentation required to participate in the plan offered; you do not make all payments during the course of the Trial Period Plan.

3. You miss at least two consecutive payments during a HAMP modification: Many people are unclear regarding this item. If you have completed the Trial Period Plan and entered in to the final loan modification stage of HAMP but you miss two consecutive payments on the modified loan then you are HAFA eligible.

4. You request a Short Sale: You have determined that you must move and you meet the first two criteria mentioned (Lender is participating in HAMP/HAFA, and you are HAMP eligible).

Although the HAFA process can be complex it may provide benefits to you that were not available previously. To participate in HAFA you must utilize a licensed real estate agent. For your own benefit make sure that you select an experienced short sale agent/negotiator. Please contact me directly at (949)218-0952 if you need to consider a short sale.

Related Posts:
HAMP Failing To Prevent Delinquency: Is Failure The New Success?

Complete Real Estate Solutions


Dave Gubler DRE# 01274644 - (949) 218-0952 - email me
website www.IMLRealEstate.com - search for homes

If I can provide you with more information about Orange County real estate, the housing market, or otherwise assist you, your friends or your family in a home search, please contact me.

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Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473

Christmas Gift Traditions Remind Us of How Much We Are Loved

Fri, 17 Dec 2010 10:43:00 -0500

Christmas Gift Traditions Remind Us of How Much We Are Loved

Yesterday was a special day for me. I came home to two packages on the front porch. I knew immediately what they were because of the familiar shape of the boxes.

One contained Mother's Macaroons from my sister Kathy. Yum yum. I was restrained. I only ate two last night. She's been sending them for at least 10 years.

The other package contained Pittman & Davis grapefruit from my sister-in-law Anita. She's been sending the box of grapefruit for the past couple of years now because my brother used to send it before he died of cancer three years ago. Actulally, in 2007 I received two boxes of grapefruit -- because my brother David didn't know Anita was sending it and David figured he was the next son in line to carry on the tradition that my parents had started years ago. Anita won out. She has the highly privileged job of sending the family grapefruit.

Pittman & Davis grapefruit reminds me of the love of my parents.

Both of my parents are dead now. Every year they used to send a huge box of grapefruit and we could never find enough refrigerator space to keep it. My ex-husband whined for whatever reasons. I loved the delicious ruby red grapefruit from South Texas.

I took the boxes of grapefruit for granted -- until after my Daddy died.

Mom had died in March 2004 and Daddy died at Thanksgiving time in 2006. We spent two weeks clearing out his apartment at the Hampton in Houston.

I was working in the living room when I heard my sister exclaim from Dad's office, "The receipt for the onions! You found the receipt for the onions! I can't believe you found the receipt for the onions." I went in to see what all the commotion was about and Kathy was holding an old paper receipt from Pittman & Davis dated sometime in 1937. Daddy had saved it for all those years and had neatly placed it in his desk drawer with other important mementos.

I had never heard the story of how my parents met. ( I was the last of five kids and I never paid any attention. Now I wish I had been more "present.")

I guess it was the year 1937 and my mother was the college roomate of my father's sister Gerrie at Mary Hardin Baylor College in Belton, Texas. Daddy had seen my mother's photograph and wanted to meet my mother. So he drove up from the Valley to visit his sister.

Evidently the girls were washing their hair in the river -- no kidding, that's what I heard. Daddy drove to the river and met my mother.

He was driving a truckload of Pittman & Davis sweet onions. He had saved that receipt for that truckload of onions for 67 years!

My parents, Cleo and Burt Matteson, were married for more than 65 years when Mommy died. I never had a clue how much they loved each other until we went through their stuff.

I just put an entire ruby red grapefuit in my Vita-Mix and am drinking my grapefruit juice as I write this blog. Yum!

Debbie Solano, ABR, CHMS, CRS, e-PRO, GRI, REOS, SRES
Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK 74135

Office: 918-712-4473

Cell: 918-724-8201

FAX: 918-394-0473