Real Estate and All That Jazz

How Much Stuff Do We Need----We're Killing Our Kids With Kindness

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Fri, 23 Jul 2010 18:15:04 -0400

Many moons ago when I was growing up, I never had a brand new bike--always a hand-me-down from my sister or my cousin. Roller skates and ice skates were shared between siblings and of course there was one black & white T.V. sitting in the living room along with one phone and a "record" player for the entire family. (I think I may be dating myself). I don't recall feeling deprived about the lack of material goods. After all, we went to the Library for Children's hour on a regular basis, walks in the park, outings to the zoo and beach, oftentimes followed by my favorite treat--ICE CREAM! I was fortunate to have a large, loving family and even though we weren't rich, the house was always filled with laughter, love and the sweet smell of my mom's coffee rolls. Little did I know I had a very special childhood.

Having lived in San Diego for the past 13 years, I have noticed a disturbing trend, and one that is prevalent in upper middle class households across the USA. Kids have so much STUFF. As a real estate agent, I am in people's homes on a regular basis. In one home I viewed 2 months ago you entered a living room with NO FURNITURE, just wall-to-wall plastic toys. I was baffled. I couldn't imagine that 20 kids would not have enough to play with. They had 2.

I have friends who have 3 kids. For every birthday and Christmas these kids get iPods, XBoxes, computer games, walkie-talkies, cell phones, and other electronic gadgets I have never even heard of. More and more and more. The home looks like Mission Control, with all the wired up, fired up devices of 5 people. They typically spend all their time inside watching TV, movies, restaurants, bowling alleys and the occasional Theme Park. I don't think these kids ever go to a library, or have a "Summer Reading List" (remember those?) What will the end result be? A bunch of spoiled brats who are academically inferior, with poor communication skills to boot. And parents with mounting debt and a whole bunch of STUFF.

I suppose the slow real estate market has made me prioritize my spending habits and I can honestly say I really don't need as many material things as I thought I did. I find myself defending my little flip phone (free) and mini laptop I use for travel as opposed to an iPhone or iPad. It would be easy to spend hundreds of more dollars monthly on technology, while I find I can be very productive with alot less.

So to get back to the main topic: Are kids getting more STUFF to make up for the quality time their parents don't have for them? Are we doing our kids a major disservice by taking away their creativity and filling it with STUFF? Is this trend going to change as folks downsize or even lose their homes and the economy takes time to recover?

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Desperate Homeowners, Bargain Hunting Buyers and Unsavory Home Inspectors: Another Perfect Storm?

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Mon, 05 Jul 2010 23:02:33 -0400

Working with a few Short Sales lately, I discovered a pattern that made me take notice.

Here you have a Seller who is facing losing their home. The Lender has agreed, the SS package is in, and the Buyers are convinced they got a raging good deal. Let's stop here and examine the particulars.

The Lender has done a BPO and come up with a figure that no one is yet privy to. The buyers have put in an offer of $410K but then decided to recant and come in lower. Why? Well, it seems that the Inspector they hired has decided there is "foundation damage" due to the hairline cracks in the plaster walls (a characteristic of every single home of this vintage). A "foundation expert" comes in and of course there are old posts and sills (house was built in the 40's), and although there is no immediate danger he "suggests" some supports and beams be replaced for more stability..... to a tune of $8500. The owner had a thorough inspection 4 years previous and there were no foundation problems found.

The roof was older, but still serviceable, and the Buyers claimed they need a new roof. A "roofing expert" came in and declared "Oh my, this roof is older than Methusela and needs to be taken off immediately and replaced". NO LEAKS were found anywhere. 4 years previous, the same owner had the roof inspected and was told that it was old but it still may last 5-8 more years. In other words, it is still quite serviceable.

So now Buyers feel justified to lower their offer to $380K.

The Buyers know they are purchasing an older home. They also know the owner is in financial hardship of some sort or there would be no Short Sale. The Inspectors, and Roofing and Foundation Contractors need work. Is this Buyer being demanding? Sure, I would be too---he doesn't want to end up in the same position as the owner. Move on to another Buyer? Perhaps, but this is the only offer. And the property fell out of escrow once at $436K, because that Buyer found another home.

The point is, do you see what is happening here? It's another perfect storm---desperate owner, demanding Buyer and unsavory inspectors/contractors bending the "truth" for the benefit of the Buyers. They see an opportunity, a ~loophole~ where they can manipulate the sales prices.

The Lender may counter-offer, but if they can't get a Buyer to pay what THEY think the property is worth, how is foreclosing going to solve this problem? Put the house back on the market? They have the same exact Buyer issues, maybe even worse, because REO's may fetch even less money (considering the costs of foreclosure.)

This artificial manipulation of the market is happening everywhere and I hear other agents discussing similar scenarios. My fear is that this is another Perfect Storm and is hindering recovery of the industry. Any thoughts?

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Insecure about Security Deposits in San Diego CA?

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Fri, 02 Jul 2010 19:04:59 -0400

Insecure about Security Deposits in San Diego CA.?

Legal definition: A security deposit is money a landlord collects from a tenant in case the tenant fails to pay rent or damages the unit. The number one issue in my experience is the interpretative difference between "normal wear and tear" and "damages".

I can honestly say that 95% of tenant issues and law suits have to do with the returning of the security deposit. What are security deposits and why do so many problems arise when tenants move out?

It is easy to get into legal trouble over deposits because they are strictly regulated by state law and sometimes also by city ordinance. State law tells you how much you can collect, how you can utilize it and when to return it. (In CA it is 21 days after move-out). It is essential that if you own/manage property you know the laws in your state.

In an unfurnished property a deposit cannot exceed 2 month's rent. In a furnished property you are allowed 3 month's rent. (** note- the first month's rent is NOT considered a deposit since it is due.**). In CA the security deposit does not have to be returned with interest, or even placed in a separate account.

The following are considered damages:

Misuse of Appliances:I recently had a tenant move out who actually cleaned the unit quite nicely, but the problem was the 2 year old toilet: the tank was "cracked" about 8" and someone had tried to glue it together. Normal wear and tear? I don't know about you but I haven't ever cracked a toilet tank. So I had to replace an almost new toilet plus the cost of installation.

Broken Windows/Screens: I had one incident where the tenant's cat had decided that the window screens would be a geat place to sharpen their claws and as a result the screens had to be replaced---not a big deal, but certainly not normal wear and tear. The tenant thought that a cat "normally" needs to sharpen their claws, so a screen is as good a place as any.

Carpets: Another tenant who was a Psychic and had "seances" in her home, had spilled candle wax on a new wall-to-wall carpet. She said it was an accident, but the wax could not be removed and the carpet had to be replaced.

Light bulbs: Most tenants consider these the landlord's expense. I beg to differ. Especially when you have recessed lighting and the halogen bulbs cost $3.00 each.

Holes in Plaster: Putting up curtain rods and hanging pictures are ok as long as you repair the damage. It may not seem like alot, but imagine a dozen nail holes over the course of 4-5 years. They really can destroy the drywall and texturing.

Plugged up Drains/Disposals: It is not normal wear and tear to find a washcloth in the bathroom drain or a beer can tab in the disposal . A tenant argued that the pipes were not hers and therefore the landlord had the responsibility to "clear" them.

The following are considered normal "wear and tear":

-Scuff marks on woodwork or walls

-Any breakdown of plumbing or appliances that is not due to tenant's negligence

-Cleaning dirty carpets as long as all stains can be removed and were not present upon move-in.

Remember to always have a tenant fill out the "Move-In Checklist" 7 days after moving in, and returning it to you signed and dated. This document will keep you out of court.

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Facebook: A Great Road Map to Human Psychology

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Wed, 23 Jun 2010 16:25:33 -0400

Facebook: A Great Road Map to Human Psychology

I have been on Facebook for about 2+ years now, and although it began as a giant cocktail party for me, I now have advanced to the Facebook Ad Campaigns. I have been using the ad campaign for only 3 weeks so I really can't comment on how it's going---I have gotten many clicks though, and the price is reasonable, so it may take several months or even close to a year to know if it has driven enough traffic to my website to make it a long term marketing strategy.

I have gotten to know the many "friends" I have accumulated, and of course most of these are e-friends, friends of friends, colleagues, friends of colleagues, old friends from college, family members, friends of family members etc. What has interested me, though, is the window into someone's personality Facebook provides. Silly, you say? Not when you are in a "people" business like Real Estate and where communication is our main focus. Here's just a few:

The Bragger
You know the type. He is constantly posting to his Wall his fabulous week-end plans, all his fabulous friends and the many fabulous restaurants he has dined in. Life is so fabulous for these folks, I wonder when he gets the time to even post to his Facebook wall? He's not a bad person, maybe a bit insecure, but hey, aren't we all?

The Do-Gooder
Let's change the world and join my Groups: Save the Whales, Save the Planet, Go Green Now, Alternative Energy, Organic Gardening, Yurt Life, Ban Bottled Water, Vegans Unite, Earth Day Forum, Gay Pride and Electric Cars. I am socially conscious too...and these guys are just trying to make the world a better place. I give them a "thumbs up".

The Photo Queen
I counted one friend who had about 300+ photos of herself and her friends and family, and they all featured her with a huge smile,drink in hand, socializing with a group of people. All of them. Week after week--weddings, graduations, parties, and beach blanket bingo. Same smile, over and over and over. I love it when folks are happy!

Self Promoting Realtor
Every wall post is a new Listing, an Open House, a client that loves him, a client that found him on Facebook, a Webinar to "boost your sales". Hold on--- I'm just envious of your success--------I'm a coming to join you!

Farmeville Groupies
Ok how do I politely tell you I don't want your wooly sheep or rows of corn? I am not quite sure I get this aspect of Facebook, but I notice this is very popular and has no age limit. I guess it's kind of like cross-word puzzles: there's no point, really, just a way to pass the time and hone your farming skills. A deep thinker.

Happy Grannies
Pictures--- daily--- of their little grandchild in different outfits, hats, shoes and seasons. In the swimming pool, under the Christmas tree, playing with the family dog. You got to love a proud grandmother.

If you have noticed other "types" of Facebook friends, feel free to add your comments here. The more types of personalities we can identify, the better we can understand our clients. And that's a great foundation for any business!

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Bill to Prevent Avoidable Foreclosure Clears California Senate

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Sat, 19 Jun 2010 14:59:36 -0400

Bill to Prevent Avoidable Foreclosure Clears California Senate

Legislation that would help prevent avoidable foreclosures and deter irresponsible lender and servicer behavior recently passed out of the California Senate, 21-12.

"Simple fairness dictates that no one should lose their home while they are in the middle of trying to save it," said Paul Leonard, director of the California office of the Center for Responsible Lending.

SB 1275, authored by Sen. Mark Leno (D-San Francisco) and Senate President Pro Tem Darrell Steinberg (D-Sacramento) would prevent servicers from foreclosing on homeowners who have requested modifications until a decision has been made, and the homeowner notified. It would also allow for a limited remedy for certain eligible homeowners whose homes were erroneously sold at foreclosure.

Currently, servicers are initiating the foreclosure process even when borrowers are working to reach a resolution, including when homeowners are following all the rules to seek a loan modification, or are already making payments on a trial modification. Additionally, if a homeowner's home is sold due to servicer error, there is currently no means by which to seek recourse.

SB 1275 seeks to change this by providing recourse through what is known as a private right of action.

This would allow eligible homeowners to seek limited damages which are directly related to the severity of the servicer's errors, or, in some cases, would allow the homeowner to reverse the foreclosure sale and require the servicer to start over and follow the law. This provides a modest deterrent to the egregious servicer behavior that can cost Californians their homes, and faces significant opposition from banks and servicers reluctant to improve their servicer practices or pay the price for their mistakes.

During earlier committee hearings for SB 1275, servicer representatives acknowledged that confusion and errors are commonplace. Bank of America executive Jack Schackett even admitted during a conference call yesterday that they "have not handled [their] customers to the standards Bank of America is accustomed to."

Confusion and errors that cost Californians their homes, however, are not only avoidable, but they are devastating. Homeowners who have been wronged deserve the opportunity to make it right.

"One of the oldest principles of law is that a right without a remedy is no right at all," said Lisa Sitkin, staff attorney at Housing and Economic Rights Advocates in Oakland. "In order for laws to be meaningful, violations must have real consequences, and victims must have real avenues to seek redress."

CRL expects that homeowners' ability to right the wrongs of irresponsible servicers will continue to be the biggest challenge to moving SB 1275 through the Assembly. It will first be heard in the Assembly Banking Committee.

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Throw way My Laptop?....No, Not Quite Yet!

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Thu, 10 Jun 2010 19:06:57 -0400

I found a FREE product I love! It's called logmein and can be found at www.logmein.com.

Have you ever wanted to leave your laptop at home, but knew that you may regret it? You just needed to check a spreadsheet or a Contract that was in your desktop folders. Thankfully, many programs are online and can be accessed from anywhere. But we all have our own stashes of personal items in our "desktop" folders and this product I found makes your laptop almost "virtual". You can get into your laptop from anywhere you have online access.

You will need to set-up a new account and password, but you will also need your main computer's username and password to work remotely This was a glitch for me, but I finally figured it out.

Check it out--- laptops may soon become a thing of the past!

Join My FACEBOOK Group: San Diego Real Estate Forum for Investors or Investor wannabees-Where there is no such thing as a stupid question.

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Bill SB 1178 Passes Senate-Realtors Tell Your CLients-This is Great News

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Fri, 04 Jun 2010 18:24:16 -0400

BILL SB1178 PASSES SENATE

SB1178 was just approved by the Senate, over Lender opposition, with a vote of 30 to 4. C.A.R. is sponsoring SB1178 to extend anti-deficiency protections to homeowners who have refinanced "purchase money" loans and are now facing foreclosure. Most homeowners didn't even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the Lender.

Check out the details on the C.AR. website.

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

5 Good Reasons Landlords Won't Rent To Dogs---And I Love Dogs!

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Fri, 04 Jun 2010 15:21:51 -0400

WOOF WOOF
I don't hate dogs--quite the contrary. When my daughter was small, we had a loveable Golden Retriever named Bernie. My daughter and he were the best of friends. He would protect her, and lick all of the day's food off her face before I had a chance to get the facecloth. His loyalty and gratitude to us for being his "people" was never ending. He got cancer at 12 years old and had to be put down. Needless to say it was a devastating event for the entire family. And to this day, every time I see a Golden Retriever puppy I am tempted..but then reality sets in and I realize it just wouldn't fit into my lifestyle--and I even own my own home!

One of the problems I encounter as a property owner in San Diego CA is that tenants love dogs too. I don't allow dogs in any of my properties and I have had to turn away some good tenants. They asked me why I hate animals so much!

Here is a list of the 5 main reasons property owners in San Diego CA do not allow dogs.

Noise
Dogs bark. Your dog doesn't bark at all when you are at work all day and has nothing to do but sit in an empty house, lonely and bored? How would you know? Do you have videotape running? Dogs bark, plain and simple. They are supposed to bark, that is what dogs do. You may not mind it, but I bet your neighbor who works nights and is sleeping during the day does.

Liability
Insurance companies deny dog bite claims to owners who own dogs of certain breeds: Pit Bull, Rottweiller and German Shepard to name a few. If your dog is a mutt, he/she may have part of this breed and depending on the amount (they can do a test), your claim can be denied. Sounds crazy? Some insurance companies have Labrador Retrievers as an unwanted breed. This borders on the ridiculous, as we all know Labradors have to be the kindest dogs on the planet earth. But you may ask what can a 3 pound Chihuahua do? Well they can deliver a nasty bite to an infant. One of my friends was bit on the finger by one and it was a pretty deep bite. Think lawsuit.

Denied Access
If a tenant does not want you in their house, a loose dog will carry out their wishes. Would you as an agent enter a house with a Pit Bull running around? A few years ago, I had a client who desperately needed me to sell his rental house, but the tenant and he had an altercation. She actually said it was ok to come in, but her 60 pound "friendly" Pit Bull was loose inside and she had no plans to tether it.. (Oh and did I mention the tenant in the back was breeding rabbits? But I digress)

Destruction of Property and Landscaping
Did you ever see a large dog dig holes? Or a small terrier "tunnel"? You know what I mean when I say destruction. And what about dog excrement that a lazy owner is just too busy to pick up daily? I had a tenant that figured if a dog poops on the snow, then it will just disappear miraculously. Well folks, I can tell you this isn't the case. In the Spring, after the snow thawed on the 1/2 acre of grass, guess what I found perfectly preserved in small bundles (6 months X 30...get my drift)? It was not a very happy day for me.

Humane Reasons
I don't know about you, but anyone with a large dog who has no moral problem with it sitting in a small apartment all day gets my vote for "Loser". It's cruel and I would feel ethically unable to allow this in my property.Tethering a dog all day in a yard is not an alternative since this leads to boredom and barking.

The time to adopt a dog is when you are settled in a home that you own----That's easy!! Become a property owner in San Diego CA.

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Short Sale Legal Issues Affecting Real Estate Agents Part #3

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Wed, 26 May 2010 11:16:07 -0400

Here is Drew Sygit's Series Part 3 of Short Sale Legal Issues Affecting Real Estate Agents.

Via Drew Sygit (The Lending Edge) Real Estate Financing Expert (The Lending Edge):

Short Sale Legal Issues Affecting Real Estate Agents Part #3

The previous posts in this Short Sale Legal & Tax Issues series were on 04/23/10 & 04/28/10.

This series of posts is meant to assist real estate agents in recognizing:

Legal & Tax Issues their clients are exposed to through a short sale.

The legal liabilities agents may expose themselves to when representing short sale sellers.

Disclaimer: This series is not intended to advocate the hiring of attorneys for short sales, but rather that agents should fully research and be aware of the potential legal liabilities.

MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY

Lawsuits & Short Sales

Real estate agents create a potential future lawsuit for themselves, and their broker, on each and every short sale transaction where they directly communicate with a seller's lender and/or give a seller advice on issues other than the sale of their property.

Now I know many agents are immediately going to disagree with that statement. Before dismissing that statement entirely, I encourage them to patiently read on.

Here's the crux of the matter - who will get sued if a seller receives a 1099-C or 1099-A at the end of the year or gets served with a deficiency judgment by their lender(s) at some point in the future?

How are the real estate agent and their broker going to avoid being named in such a lawsuit?

Do you communicate with your short sale clients via email? Do you give them advice or tell them what to do in these emails? Have you ever considered how those emails could be used against you in a lawsuit?

I know an agent that told their short sale client that they didn't have to worry about a deficiency judgment as the agent was able to get the lender to waive it. I reviewed the letter from the lender the agent claimed waived any future deficiency claims. I saw only vague language concerning the deficiency and immediately recommended the agent have an attorney review it. The review attorney stated that the letter in no way waived any future deficiency claim. Unfortunately for the agent, they had told their seller via email that they had gotten the lender to waive the deficiency!

Nothing's happened yet, but how is this agent going to fight a lawsuit from their client if & when the lender decides to "surprise" the client and pursue the deficiency?

Now many agents I've talked to about short sales, tell me they have a legal disclaimer they have sellers sign to protect themselves. Sounds great until I ask them who wrote it - and they tell me they did.

Even if you have a great Short Sale Legal & Tax Issues disclaimer written by an attorney and have your client sign it, you can invalidate it and expose yourself to liability if you somehow contradict it in an email.

The National Association of Realtor's Position on Short Sales

NAR currently offers a Short Sale Certification for agents, but at the same time publishes articles in their official magazine, REALTORMag, that warn agents about the legal and tax issues of dealing with short sales.

NAR also addresses Short Sale Legal & Tax Issues by referring agents to two Articles of the Realtors' Pledge of Performance & Service:

Article 11 REALTORS® are knowledgeable and competent in the fields of practice in which they engage or they get assistance from a knowledgeable professional, or disclose any lack of expertise to their client.

Article 13 REALTORS® do not engage in the unauthorized practice of law.

It appears NAR really doesn't have a clear cut position on what their members should and shouldn't do in short sale transactions. How can they leave their members in such a murky position?

Insurance Coverage for Agents on Short Sales

Still not convinced real estate agents are not leaving themselves open to lawsuits and they've got nothing to fear?

Consider this recent NAR statement about Errors & Omissions insurance right from their website:

There has been a significant decrease in the rate of E&O insurance provided by firms: Only 13% of all REALTORS® received it in 2008, down 10% from the prior year.

E&O coverage is more common in non-franchised subsidiaries: In 2008, 17% of REALTORS® in non-franchised subsidiaries of national or regional corporations received E&O insurance as a benefit, compared to 13% in franchised subsidiary companies.

There are also some questions as to if an E&O policy would even cover an agent charged with the unauthorized practice of law.

Stay tuned for the next post in this series on Tuesday, May 4^th ...

NOTE: if you're the impatient type and don't want to wait to read the series as it's published, I'll send you the complete whitepaper for the series when you do ALL of the following:

Post a constructive comment on one of the posts in the series

Reblog one of the posts in the series

Make me an associate of yours on ActiveRain

Join my Fanpage @ www.facebook.com/TheLendingEdge and send me a message there requesting the whitepaper with your email address.

If you're a Michigan agent, I'd also very much appreciate you joining a new AR group specifically for Michigan real estate professionals willing to share marketing and social media ideas with each other.

http://activerain.com/groups/michiganmarketingideas

Thanks for reading and I hope you spread the word.
_______________________________________________________________

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Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Buyers: 7 Questions to Ask Before Buying a Condo.

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Sun, 23 May 2010 17:18:30 -0400

Condo Buyers in San Diego, CA: 7 Questions To Ask Before Buying A Condo

You've found your dream condo and are ready to relax among the mango trees and swaying date palms. Hold everything. To keep from getting
stuck with a lemon, you've got to do some homework. Here are the seven most important questions you need to ask before buying a condo.

1. "What's the Beef?"

Take a look at the minutes of the condo association board meetings to see
what the owners have been griping about. If everyone was complaining about
the faulty plumbing or the gardener's absence, you know that the complex is
having management difficulties. Even if there aren't any complaints, reading
the minutes will reveal the sorts of projects that are under way at the
complex -- projects the seller may have neglected to mention.

2. "Who's Been Naughty and Who's Been Nice?"

Find out the delinquency rates of present owners. If people aren't paying
their association dues on time, that is either a sign of discontent or an
indication that the association might be underfunded.

3. "How Much Is In the Repair Fund?"

Ask if the community has done a reserve-fund review in the past five
years. Lester Giese, the author of The 99 Best Residential & Recreational
Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that either is not being kept up well or is living beyond its means.

4. "Can You Cover Me?"

If you look at nothing else, get a copy of the certificate of insurance,
which is a summary of the association's policy. First see if the replacement
costs covered by the policy are an accurate estimate of the cost of
rebuilding. Then make sure that the policy has a building-ordinance clause,
which means that the insurance will cover the cost of bringing the building
up to code if there is any rebuilding to be done. On older buildings, there
may have been many code upgrades since the time of construction. Finally,
make sure that you understand exactly what the association policy covers and
what you are responsible for. The smart condo owner will insure his or her
personal belongings, along with any other items within the unit that are not
covered by the association's policy. If you have trouble understanding the
insurance lingo, take the insurance certificate to an agent whom you trust
and who understands the state laws.

5. "Does the Association Present Any Legal Problems?"

Buying a single-family home without a lawyer is no big deal for many
people. But with a condo, there's so much more involved. Contact a local real
estate lawyer and have him or her go over the bylaws of the association. Do
they make sense? Are they consistent with the state laws? Giese, the author,
once found that the association bylaws of a large garden-style condo complex
had been lifted from the books of a high-rise condo, leaving confused tenants
with rules about shared hallway space and the correct use of garbage chutes.
Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any
owners have filed suit against it.

6. "Is the Complex Renter-Friendly?"

If the renter population is over 10%, there should be clear rental
policies, either listed in the bylaws or tacked on as an amendment. Does the
management company find renters for you? If so, do they get enough good renters?
Ask other tenants about their experience. In addition, ask to see the
association's rental lease, and have a real estate lawyer look it over. Keep
one thing in mind, though: An association can change its bylaws to prohibit
or restrict renting at any time. The more owners who rent, the less chance
that will happen.

7. "Am I My Community's Keeper?"

Watch out for a condo whose owners manage the place themselves. Although
many are operated efficiently, self-management can lead to more hassles for
owners -- especially those who live thousands of miles away. If the complex

is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.
Join My GRoup on Facebook For New Investors.

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Yes, I did Go To Rain Camp in L.A. 5/15/2010 ....BUT I Also Took These Photos For A Collage

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Tue, 18 May 2010 18:30:05 -0400

Yes I did go to Rain Camp in L.A. on 5/15/2010. It was a great learning experience, and I met so many great folks. Go to Ted Mackel's Blog and you will see the wonderful video he took of the event and the cocktail party afterwards. He sure is a talented filmmaker, wouldn't you say? I was lucky enough to dodge the camera, but believe me, it wasn't easy.
I love "local color" and so I went on a photo safari on Sunday to take pictures of the Venice Beach-Santa Monica area, where I walked for many miles. Here is a collage of what I saw.

Want to invest in Real Estate in San Diego? Contact me!

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Short Sale Legal Issues Affecting Real Estate Agents Part #2

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Tue, 18 May 2010 12:08:12 -0400

This is the 2nd Part on the Series of legal issues affecing Short Sales by Drew Sygit.

Via Drew Sygit (The Lending Edge) Real Estate Financing Expert (The Lending Edge):

Short Sale Legal Issues Affecting Real Estate Agents Part #2

The previous post in this series was on 04/23/10, click here to read it.

MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY

This series of posts is meant to assist real estate agents in recognizing:

Legal & Tax Issues their clients are exposed to through a short sale.

The legal liabilities agents may expose themselves to when representing short sale sellers.

Agents will be dealing with more & more short sales, both on the listing and sale sides, as the Obama administration's HAFA Program gains traction and meets its goal of decreasing foreclosures by turning them into short sales. So, you can either jump on board the "short sale train" or get run over by it.

Now let's look at some common legal & tax issues encountered on short sale transactions. Please share your thoughts and experiences with constructive comments for the benefit of all!

General Legal & Tax Issues on Short Sales

One of the biggest challenges and murkiest, is how to handle the legal and tax issues seller clients must consider on short sales. The major concerns on just about every short sale transaction:

What is the foreclosure process in the state where the property is?

Is the foreclosure process judicial or nonjudicial?

Is the mortgage debt(s) recourse or nonrecourse?

What are the tax ramifications of 1099's for forgiven debt?

How should potential deficiency judgments be addressed?

When should a seller client sign or not sign a Promissory Note to avoid a potential deficiency?

Is a short sale really the best option for a seller?

How will the seller's credit be impacted?

Should the seller file bankruptcy and if so, what type & when?

What happens if a Foreclosure Sale occurs during the short sale process?

Although some experienced real estate agents might be able to adequately address these issues, the majority of agents engaged in short sales are really in over their heads without even being aware of it.

Let's look at each of these a bit closer.

What is the foreclosure process in the state where the property is?

Keeping track of each state's foreclosure process could be overwhelming. Most agents though, only do business in one state, sometimes two, and so only need to concern themselves with their state.

Some states adhere to Title Theory where a Deed of Trust is used to convey the property deed to a trustee who holds the deed for the protection of the lender. Other states follow Lien Theory, where the homeowner retains the deed to their property but allows lenders to put a lien against the property through a Mortgage. Click here for a list of what each state uses.

Of critical importance is knowing how long the foreclosure process takes in the state where the property is located. Agents should also know if there's a redemption period after a foreclosure sale and how long it is. For more information on state foreclosure laws, click here.

Is the foreclosure process judicial or nonjudicial?

Agents should know if the lender just has to notify the homeowner and advertise the foreclosure sale or if they have to take the homeowner to court to foreclose. This neat map of the U.S. shows which method each state uses. Just hover over the state you're interested in.

Is the mortgage debt(s) recourse or nonrecourse?

Homeowners need to be made aware whether or not a lender can pursue them for a deficiency judgment for the difference between what they owe and what their property sells for at foreclosure. This is a totally separate issue from a 1099 for debt forgiveness and should not be confused with it.

Nonrecourse States

Alaska, Arizona, California, Connecticut, Florida, Idaho, Minnesota, North Dakota, Texas, Utah, Washington

What are the tax ramifications of 1099's for 1099 forgiven debt?

The Mortgage Forgiveness Debt Relief Act, which was extended to December of 2012, exempts acquisition or home improvement debt on one's primary residence from taxation. The limit is $1 million for single or $2 million for joint tax returns. Many agents tell their short sale sellers not to worry about a 1099-C ("C" stand for Cancellation) without asking their client if they pulled money out of their home through a refinance and what they used the money for. That's definitely a liability issue for the agent!

How should potential deficiency judgments be addressed?

This is not a question an agent should discuss with their client. You can talk about possibilities, but should refer your client to an attorney and or CPA. If your seller receives an unexpected deficiency judgment after you sell their home, who do you think they'll sue?

When should a seller client sign or not sign a Promissory Note to avoid a potential deficiency?

A deficiency judgment could affect a seller's credit and may lead to garnishment of bank accounts, paychecks, and even state income tax returns. Sometimes it may make more sense to negotiate a Promissory Note instead. Not something an agent should be doing!

Is a short sale really the best option for a seller?

There are many internet articles complaining about agents talking sellers into a short sale when a loan modification or other option would have been in the client's better interest. Sometimes staying in the property for as long as possible with no payments, is a homeowner's best course of action. Other times, given FNMA's recent clarification of waiting periods for qualifying for a new mortgage, a short sale may be best. If your client hasn't explored their options, you could be exposing yourself to a potential lawsuit if you don't properly inform them of the alternatives.

How will the seller's credit be impacted?

A lot of real estate experts were proven wrong when Fair Isaac Company, the developer of the infamous FICO credit scoring model, revealed how short sales, deeds-in-lieu and foreclosures affect a borrower's credit scores. Two important highlights: they all affect scores approximately the same and people with higher scores will be affected more. Almost every agent I've ever spoken to about short sales has told me with conviction that a short sale is better for a seller's credit than a foreclosure. I don't think "oops" is going to get them out of a lawsuit from an upset client.

Should the seller file bankruptcy and if so, what type & when?

Often a homeowner short selling their home has lost their job or is buried in debt with no realistic hope of getting out of their situation. Combining their situation with the probability of getting hit with a deficiency judgment may mean they'd be better off filing bankruptcy. Agents should make sure they don't give legal advice in these situations and don't get overeager to just list a property in pursuit of a commission check.

What happens if a Foreclosure Sale occurs during the short sale process?

Given all the various state foreclosure laws, this could be ugly. I've witnessed more than one agent telling a seller they could push a foreclosure sale back and not to worry. How do you spell misrepresentation? Proper disclosure must occur - even if it costs a potential commission check.

Well, how am I doing so far? Have I gotten your attention and enticed you to come back for more? Do you even want to read more or are you just going to swear off short sales altogether?

I recommend you find the best & most knowledgeable real estate attorney you can in your area and take them to lunch to discuss all these issues. From personal experience I warn you against just settling for an attorney you already know or one that claims they know what they're doing. Many attorneys are no more experienced than you are at short sales and are learning on the fly - and may do so at you & your client's expense. Seek out experienced attorneys or ones that are exerting a lot of effort to educate themselves quickly and are honest about it.

NOTE: if you're the impatient type and don't want to wait to read the series as it's published, I'll send you the complete whitepaper for the series when you do ALL of the following:

Post a constructive comment on one of the posts in the series

Reblog one of the posts in the series

Make me an associate of yours on ActiveRain

Join my Fanpage @ www.facebook.com/TheLendingEdge and send me a message there requesting the whitepaper with your email address.

If you're a Michigan agent, I'd also very much appreciate you joining a new AR group specifically for Michigan real estate professionals willing to share marketing and social media ideas with each other.

http://activerain.com/groups/michiganmarketingideas

Thanks for reading and I hope you spread the word.
_______________________________________________________________

If you enjoyed my blog post,
I invite you to connect with me on the social networks below & subscribe to my blog!

"Referrals are Sending Someone You Care about, to Someone You Trust!"
So, forward this blog post to someone that'll appreciate it!

_______________________________________________________________

Drew Sygit: CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MAMP Instructor & Speaker
The most Certified Mortgage Expert in the Midwest

Contact him for The Lending Edge
P: 248-356-3739 • F: 866-215-3755 • dsygit@TheLendingEdge.com • www.TheLendingEdge.com

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Stunning Home For Rent With Views Forever in San Diego, CA

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Thu, 11 Mar 2010 20:17:10 -0500

$2,600.00 per month - Stunning Home for Rent with Views Forever in Fletcher Hills

Location: El Cajon, CA

This Fletcher Hills gem on View Way is available for rent. Located at the end of a cul-de-sac, the street name says it all!
Large 3BR/3 BA home has a rambling floor-plan that's on one level, with lovely hard wood floors throughout.Cathedral beamed ceilings. Tastefully updated kitchen with stainless appliances is a cook's dream. "Wet Bar" w/granite counter-top.
Huge master bedroom has truly loads of closet space. Room configuration allows for 2 roommates or seperate areas for in-law or teen-agers.
Low maintenance lot has a patio and small yard with expansive views, yet total privacy from neighbors. Gas grill for those warm summer nights and ideal for entertainment.
2 car garage.No Pets preferred but owner may consider a neutered cat on an individual basis.
Available now. $2600/month rent.One month Security Deposit.
E-mail: deborah.stone@cox.net to see.

Contact Information

Deborah A. Stone

REALTY SOURCE

Blog: www.sandiegoCAproperties.com

Lic. #: 01224156

Pricing

Rent: $2,600.00 per month

Available Date: Mon Mar 15, 2010

Deposit: 2600

Minimum Lease: One Year

Property Location

1612 View Way

El Cajon, CA 92020

View Map

Features

Bedrooms: 3Bathrooms: 3Parking Spaces: 2Year Built: 1970'sGarage Size: 2Square Footage: 3000Agent Name: Deborah A. StoneBroker: Realty Source

Attributes

Appliances

Range/Oven

Full Refrigerator

Dishwasher

Sink Disposal

Microwave

Interior Amenities

Fireplace

Hardwood Floors

Kitchen Island

Vaulted Ceilings

Exterior Amenities

Patio

Grass Lawn

Secluded setting

Front of House

Views From Yard

More Views

Front Door

Master Bath

Gorgeous Stone Fireplace

Large Kitchen w/Island

Wet Bar Area

Kitchen

Lots of Closet Space

All information in this site is deemed reliable but is not guaranteed and is subject to change

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Metro San Diego Farmer's Markets

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Mon, 17 May 2010 11:52:25 -0400

Metro San Diego Farmer's Markets.

Are we lucky or what? Fresh local produce all year round....well, mostly all year. There's no excuse to eat an unhealthy diet, with so many fresh food choices. Check out one of these markets near you.

Fresh Eggs straight from the hen

Buy Local Produce

Pacific Beach Certified Farmer's Market

Saturday: 8 a.m. to noon
4150 Mission Blvd (between Reed and Pacific Beach blvd)
Pacific Beach, CA 92109
Manager: Mary Hillebrecht
Contact: 760-741-3763

Barrio Marketplace Certified Market and Open Air Market

Saturday: 9:30 mm-2 pm
2258 Island Ave. (between 22nd and 23rd Streets)
San Diego, Ca 92102
Manager: Jerry Guzman
Contact: jguzman@shermancenter.org

San Diego City Heights Market

Saturday: 9 am-1 pm
Wightman St. (between Fairmount and 43rd)
Accepts EBT, credit and debit
Manager: Lorrie Scot
Contact: thelazytranch1@gmail.com

San Diego-Gaslamp-Third Ave. Certified Farmer's Market and Asian Bazaar

Sunday: 9 am-1 pm
400 block of Third Ave. between Island and J St.
San Diego, Ca 92101
Manager: David Klaman and Diem Do
Contact: 619-279-0032

San Diego-Hillcrest Certified Farmer's Market

Sunday: 9 am-2 pm
3960 Normal St. at Lincoln
San Diego, A 92103
Manager: David Larson
Contact: 619-237-1632

San Diego Horton Square Certified Market

Thursday: 11 am-3 pm (March-October)
225 Broadway, South side of building cross street Broadway Circle
San Diego, CA 92101
Manager: Mary Hillebrecht
Phone: 760-741-3763

San Diego Little Italy Mercado

Saturday: 9an-1:30 pm Date St-India to Columbia-North Side
San Diego, CA 92101
Manager: Catt White
Contact: mercato@littleitalysd.com

San Diego Mission Valley San Diego

Friday: 3pm-7pm
Westfield Mission Valley Mall-East parking lot near Macy's
2028 Camino del Este
San Diego CA 92108
Manager: Brian Beevers
Contact: Brian@sdmarketmanager.com

North Park Farmer's Market and Open Air Bazaar

Thursday:
Spring/Summer: 3pm- sunset
Fall Winter: 2pm- sunset 3151
3151 University Ave.-CVS parking lot at 32nd St.
San Diego, CA 92104
Manager: David Larson
Contact: 619-237-1632

Tu Marcado Certified Farmer's Market

Wednesday: 11 am-2 pm
University of San Diego Campus (In front of Student Life Pavilion)
5998 Alcala Park
San Diego, CA 92110
Manager: Charles Ramos
Contact: 619-260-8859

San Diego Farmer's Markets Metro San Diego,CA

Deborah A. Stone Realtor Contact Me

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"

Lakeside CA Executive Retreat-Luxurious House for Rent in East County San Diego CA

DEBORAH STONE (Hogue and Belong Bankers Hill- San Diego, CA) — Mon, 07 Dec 2009 18:16:02 -0500

Lakesdie CA Executive Retreat For Rent-Lakeside CA

Step into a rental home that is perfect in every way for the discriminating tenant. This home was built as a custom designed retreat for the owner who is leaving the area. Enter through the huge hand carved mahogany doors to a custom winding staircase.. Home is approximately 1500 s.f. One huge master bedroom with fireplace and hand carved teak mantel. "Walk-in" granite shower and designer glass bowl sink. 2nd bathroom has glass bowl vessel sink and hand carved mirrors.Open floor plan with gorgeous kitchen and sliders to large deck with astounding views. Separate dining area and open living room make this house for rent perfect for entertaining. Marble, granite and teak custom touches throughout. Custom lighting. 2nd bedroom is very small but good for child or at home office. 2 car garage. Walk up to the private roof deck with 360 degree views. Surrounded by 5+ acres of land with lemon, avocado and tangerine trees. Perfect for the upscale couple who desire a one-of-a-kind Lakeside Executive retreat house for rent with no next door neighbors. $2995/month. Horses and dogs ok. Drive by and

contact me

House for Rent located near Wildcat Canyon, Lakeside, CA

Walk-in Travertine Shower in Master Bathroom

Patio off Kitchen with views of the Lakeside Hills

Kitchen

Deborah A. Stone, Realtor Integrity-Solutions-Results-

Hogue and Belong Realty-Bankers Hill

San Diego, CA

"Representing clients with the experience of an investor"