Nobody Loves A Landlord

Writen by Mark Walters

The typical landlord starts off life as a light hearted real estate investor. The investor is brimming with enthusiasm and is determined to acquire some single family homes that will be attractive to renters… and start down the road to financial independence.

Then… Wham! Reality smacks them right in the face! The investor landlord is fair game for almost everyone.

Why? Because nobody loves a landlord.

It’s bad enough that many renters don’t quite understand that without their monthly rent payments the landlord can’t make the mortgage payments on the property.

A few renters are surprised to learn that the family room of a rental home was just not designed as the place to rebuild motorcycles.

Nobody loves a landlord.

And then… how many legal hoops must the landlord jump through? In most states tenant/landlord law favors the tenant in many ways

For example:

A tenant signs a one year lease. Six months later the tenant breaks the lease and moves. Now the law demands that the landlord find a new tenant for that unit as quickly as possible.

Yes, the tenant only has to pay rent until the new tenant is found… but the burden falls on the landlord. Why shouldn’t the tenant… the one who broke a contractual promise have to find the replacement tenant?

Why? Because nobody loves a landlord!

Here’s the first paragraph of a story in my morning newspaper

“A huge marijuana garden of 212 plants nurtured by an intricate irrigation and lighting system worth ten of thousands of dollars was uncovered inside a West Valley rental house Saturday.”

The house was vacant except for the cash crop and I can’t help but wonder if the growers were getting government farm subsidy payments?

The home has an out of state owner. Some poor investor who thought he would cash in on the fast rising Arizona home values.

Here’s the kicker. That investor could be held responsible, because he did not properly supervise the use of the property! Many areas have such laws.

Why? Because nobody loves a landlord!

This should be a reminder to all of us that a rental house or unit is not a set it and forget it investment. Every good lease or rental agreement has an inspection clause that allows the landlord or his representative to periodically enter and take a look at the condition of the premises.

Are you doing that? You should be, because…

Nobody loves a landlord!

About the Author: Mark Walters is a third generation real estate investor who shares his experience from his Web sites: http://www.lease option sub2.com
http://www.CashFlowInstitute.com

Second Home Loans are Different

Writen by Bob Waun

The National Association of Realtors reported that nearly 1/3 of all homes sold in 2005 were second homes. A record number of second home sales, and 2006 is expected to be nearly as strong! So why are lenders so critical about second home lending? Often requiring higher rates, larger down payments and more diligent underwriting for second home buyers?

Second homes by nature require higher debt to income ratio allowances, because the buyer/borrower must be able to afford 2 homes. The taxes, insurance and maintenance that comes alongs with the privledge of multiple home ownership is considered additional risk.

Lenders beleive that if a buyer is going to default on a mortgage, they will default on a second home, and then their primary. So again they consider second homes more risky.

Second homes often have unique features, like unique design (log homes, unconventional floor plans) or unique locations. The location of second homes can make it hard for lenders to obtain proper appraisal comparable sales because they are often in rural or less than active real estate markets. Or second home can be in higher risk locations flood plains, earthquake zones, lava flows.

What makes a second home desirable and special is often what makes it hard to mortgage.

Lastly, second homes are often used as both personal use and as a rental property. The risks of rental property includes liability, management hassle and expense, and loss of rent risks. Will a borrower default if he cannot rent his second home?

For all these reasons, lenders who want to serve this market need to specialize in second home mortgages and fully understand the risks of vacation home lending.

Bob Waun , Founder & CEO

bwaun@vacation finance.com Bob has held positions as VP at Paramount Bank, Americor Financial, and while at Wells Fargo, Bob innovated lending for Condo Hotel projects. He holds a Master’s degree in finance/economics and BBA in finance from Walsh College and a MI Real Estate Broker’s License. He has personally lent over $750+ million in residential loans, and over seen operations lending $1+billion. He has been a professional guest speaker and taught numerous courses/seminars on real estate finance.

He managed controlled business relationships for a national real estate brokerage in MI and OH, held top sales honors for Wells Fargo in 7 states. Bob has a 17 year track record of cutting edge innovation in the mortgage finance.

Etiquette for New Homeowners, and their Friends, Neighbors & Relatives

Writen by Mark Nash

Moving is hard work, stressful and filled with adventure. These do’s and don’ts can help you position the new home adventure you or someone you know is having a positive one. It makes sense to know what’s proper and what’s not in your or your relatives, friends or neighbors new home and hood. Mark Nash author of 1001 Tips for Buying and Selling a Home shares some do’s and don’ts on new homeowner etiquette.

Do’s
Host your own housewarming party, if your a new homeowner invite friends and family over to see the new place.

Deliver your sets of keys to your new neighbors home that the previous homeowners gave to you.

Introduce yourself, your partner and children to your neighbors before they seek you out. New homeowners, young and old love to be welcomed to the hood.

Offer to introduce you new neighbors and their dog(s) to other dogs they might run into on neighborhood walks. Don’t forget to warn new homeowners with pets about which dog owners allow their dogs to go off leash.

Offer advice on your favorite bakery, hair stylist, babysitters and dog groomers.

Alert them to the locations of 24 hour stores, in case your new neighbors have an emergency in the middle of the night.

Offer to help family members who are new homeowners get unpacked or clean.

Offer to take mountains of packing and moving boxes to the local recycling center for new homeowners.

Offer to host an informal neighborhood get together for your new neighbors to meet the current ones.

Know when it’s time to go home, don’t wear out your welcome with the new homeowners.

Bring your new neighbors bottles of chilled spring water on moving day and offer to catch up with them once they get settled.

Deliver your name, address and phone number with a list of emergency numbers to your new neighbor.

Offer to clear recently moved in new neighbors sidewalks after a snowfall, especially if they moved from a non snow climate.

Suggest that packages your new neighbors are expecting can be left at your home while they are at work.

Wave to your new neighbors if you don’t have the time to talk.

Ask your neighbors who they would recommend for repairs and remodeling projects in your new home.

Do learn from neighbors with different cultural backgrounds.

Don’t

Register for gifts if your hosting a housewarming party in your new home.

Expect housewarming guests to bring gifts and if you do receive gifts, open after the party.

Drop in on new homeowners, call first.

Offer decorating advice to a new homeowner unless asked.

Don’t ask how much they paid or imply that the new homeowner over or under paid. People consider financial information private.

Gossip about the previous homeowners, you might not know if the new owners still talk with them.

Gossip about others in the neighborhood. Let new make their own decisions.

Attach ribbons, signs or flags to the new homeowners property without asking permission.

Ask your new neighbor to trim trees or hedges on your first meeting, they probably know what needs to be done, in time.

Expect new homeowners to have free time. Moving, working and setting up a household is at the minimum a part time endeavor.

Housewarming Gift Suggestions

For everyone.

Artist rendering of the new house.
Personalized stationary with the new homeowners address.
How to home repair book.
Homemade baked goods.
Fresh picked vegetables and fruit from your garden.
Blooming or foliage houseplants.
Watering can for inside plants.
Specialty Coffee and Teas.
Fun and funky kitchen towels.
Exotic spices.
Gift certificates for home improvement stores, house cleaners, dog walkers, landscapers, local restaurants, spa, window washers.
Bar Accessories, corkscrew, cocktail shaker, wine and drink coasters.
Everyday wine glasses.
Champagne to toast the new homeowners.
Picture frames.
Candles.
Bar accessories: bottle opener, corkscrew, swizzle sticks, and cocktail shakers.

For those with a yard.

Garden tools, or potted perennials from your yard.
Bird feeder or house.
American Flag.

Mark Nash’s fourth real estate book, “1001 Tips for Buying and Selling a Home” (2005), and working as a real estate broker in Chicago are the foundation for his consumer centric real estate perspective which has been featured on ABC TV, CBS The Early Show, Bloomberg TV, CNN TV, Chicago Sun Times & Tribune, Fidelity Investor’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Investors Why Not Abandoned Real Estate?

Writen by Bill Carey

We drive by them everyday abandoned houses, commercial property, apartments all boarded up some fenced in. They’ve been there for so long it doesn’t register any more doesn’t trigger us into action. There is gold in those boarded up properties follow these 7 steps to make small changes in how you do business.

1.A New Start - Tomorrow start with a new perspective know in you mind that you have missed a great deal of opportunities in abandoned properties that were in front you all the time. Drive slower, look at every property you go by with your new eyes. Drive a different way each day.

2.Bird dogs - Hire a bird dog; pay by the lead or by commission. Just get someone out on the street actively looking for vacant properties. They are out there ready for you to make an offer. Banks and dead tired owners are waiting for you.

3.Real Estate Agents - Don’t waste your time they have already had these properties listed and couldn’t sell them. These are the dogs that nobody wants anything to do with. No commissions for agents here.

4.When You Find One - Now the real work starts. Sometimes it is easy to find the owner through the tax records, no problem. If that doesn’t work try the neighbors’ maybe they know something. What’s next how about hiring a skip tracer private investigator could be expensive $400 or $500 to make $25,000 you do the math. Abandon run down properties are usually that way for a reason, nobody can contact the owner.

5.Found The Owner - Find out what they know about the property. It may be Uncle Charlie’s house left to them in his will and they don’t want anything to do with it, an opportunity for a good deal. Again it could be the whole family knows about it and they have been waiting years to get their piece of the pie, maybe not such a good deal.

6.Offer an Embarrassing Amount - Remember it’s abandoned nobody wants it. To get your point across use photos with your offer, maybe the City Building Dept has notices posted, danger signs. Use anything ugly, photos of other ugly properties near by or newspaper articles about the neighborhood.

7.Closing the Deal - Use your real estate attorney to prepare the paperwork and close the transaction. Before money changes hands, do your due diligence, have it appraised, order Title report and insurance, a survey, research building code and health code violations. You should be ready to go.

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see “Insider Real Estate Secrets Revealed” …a must read for Home Owners and Renters! It’s a F*R*E*E 12 lesson e course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars

See http://www.BillCareyRealtor.com and sign up for our monthly e newsletter with tips for buyers, sellers, home owners and soon to be home owners.

(Your Comments are Welcome)

How Come No One Told Us About This When We Were Buying a Home?

Writen by Don Berthiaume

Development, it’s bound to happen.

Simply because there is a large open field, or the property you’re looking at borders woods, doesn’t mean it will or can stay that way in the future.

I could rattle off instance after instance where home buyers who may have just closed on a property, are being notified as an abutter that some type of proposed development, they hadn’t heard about previously, was taking place right next door to them.

On that note, here are a few questions that, as a home buyer, you need to raise as you look around the property and neighborhood:

• Are there any subdivisions, large or small, or plans that are expected to be coming before the planning board that would affect your prospective neighborhood?
• Are there any ongoing or existing subdivisions or plans that would adversely affect your purchase decision?
• Is it likely that the neighborhood could be redeveloped for another use?

Most municipalities have a Master Plan that gives a plan of action for how the community is or could be developed in the future. Often, discussion is by area, neighborhood or grouped by use.

One of the things you should check out is if there are any changes planned in the short term or long term for the particular area of the city or neighborhood in which you are looking to live.

Neighborhoods go through transitions that include development, stability, and decline/redevelopment. Some areas are in transition from one use to another.

Other areas are slated for actual zoning changes perhaps to a much higher density because of the dwindling supply of land that can be developed.

Getting caught in the middle of such a transition may make resale much more difficult and life at the old homestead less desirable if development occurs all around you that you weren’t anticipating or told about.

Zoning ordinances dictate what you can or can’t do in a certain area of the city, including what uses are allowed to exist.

Review a zoning map of the area to answer the following questions:

• Is the residence you’re looking at in a residential zone?
• Does the property border a different zoning district?
  • Does it border a commercial or industrial zone?
  • Does it border another residential zone that preserves a lower density?
  • Does it border another residential zone that allows for a significantly higher density?
  • Does it border a mixed use zone?
  • Does it border an historic zone or district?
• Does the property straddle more than one zoning district?
• What is the effect on minimum lot size requirements?

I have experienced each of these scenarios being at issue with a property I was involved with at one time or another, either as a sales agent, real estate appraiser, as a member of the Zoning Board, or as a property owner.

The advice here is plain and simple.

When buying a home, be sure to do your homework. Don’t be like many home buyers who fail to understand as much as they can about the home they want to buy and end up disenchanted with their financial investment.

Copyright 2005 Don Berthiaume

ABOUT THE AUTHOR

Don Berthiaume gives you the questions you need to ask when buying a home. For more details, and for a free 4 part mini course in home buying, visit this site now: Buying a Home

How To Start Investing For Financial Independence, Part 2

Writen by Chris Anderson, PhD

Last week, we started a multi part series about how to go from being a beginning investor to being “financially independent” in a steady and predictable way. Many, many people want to overly complicate this process so let’s briefly, let’s recap that discussion.

The bottom line steps that I suggested in the last article was:

1) Look for an opportunity that will return at least 150% in 2 yrs or less;

2) Be mentally and financially prepared if the investment does not work out;

3) Have VERY good reasons why you don’t think you will lose money You may not make as much as expected, but you would rather not lose money at this stage.

4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan.

I gave an example where a hypothetical person had gone through this process and ended up with a profit of $43,000 (before taxes) and $36,000 of after tax profit. When this profit was combined with their original investment, they now had around $55,000 of operating capital for Step 2.

Before we get to Step 2, let’s take a step back. For a lot of people, if I told them that somebody made $43,000 on a quick investment, they would think these people had “struck it rich”. Kind of like winning the lottery, right? NO! In the grand scheme of things, this investment will do very little to impact their financial independence. That is, it will take discipline to now use these profits to go into the next investment, and then use those new profits to go into the 3rd investment, etc. So, in our opinion, this first investment was merely a stepping stone towards a much bigger objective.

In Step 2, most savvy investors will now realize they have just been given some extra monopoly money, or money that was not originally theirs, to work with. In the investment and trading world, this is referred to as the “market’s money”; i.e., money that you got from the market that you can then use to generate revenues above and beyond what was possible with your original investment. Quality traders can use this concept to produce huge % returns in a year while risking no more than 10% of their original portfolio.

So let’s say the investor now decides to repeat the process and buy two more preconstruction lots in a different development. In the two years since the first investment was made, suppose now that property has escalated. In addition, the investor finds a good deal on two lots and each is $250,000 to purchase.

Now, the investors visits their check list to see if this makes sense:

1) Look for an opportunity that will return at least 150% in 2 yrs or less yes, they have reason to believe this will occur for their down payment amount;

2) Be mentally and financially prepared if the investment does not work out yes, they don’t think it will happen but if they lose their entire 10% down payment, they are ok with this.

3) Have VERY good reasons why you don’t think you will lose money You may not make as much as expected but you would rather not lose money at this stage They have done their due diligence and feel strongly about the investment.

4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan they are not swinging for the fences but rather patiently using the previous market’s money to increase their investment.

Well, like the other investment, suppose this one works out in their favor. In their two year holding period, the lots experienced a 35% increase in price. Not bad. They were hoping for more since they knew some places had that kind of increase in a few months but they are not complaining. After closing costs, the investor had about $55,000 invested and netted a total of $162,000 after expenses. Of course their silent partner, Uncle Sam, wanted their cut so now they are left with a $137,700 in profits and $192,700 in working capital. Not too bad after only 4 years.

Now let’s ask the question are they financially free? We’ll, I doubt it. The investor could probably now survive for 2 3 years on the nest egg but only if they did not reinvest it. However, if the family and friends find out about this gain, then they will think the investor is now “rich” and living like the Vanderbilts…… For anybody that has made it to Step 2, you know they are far from rich because now they want to invest to go to Step 3 and this will likely consume most of their money. Frequently you will find people in the $0.5 $2Million dollar net worth in this category where they are doing great on paper but they don’t have any more “extra” money to spend than they did a few years ago. After Step 3 4 however, this can change dramatically.

Before we conclude this week’s article, let’s talk about a very common, and deadly mistake. In the language of Texas Hold’em poker, it is the All In mentality. Frequently, after a first success, people now feel bulletproof and decide they want this process to go faster. They leverage everything the have and take on as much risk as the banks will allow them. If things work out for them, they will explode their wealth with that step. However, if something slips up, they are in trouble.

Most people believe nothing like that can happen to them they are too smart. I mean everybody knows that real estate does not go down, Right? I know a gentlemen who is extremely smart, extremely business savvy, and grew his net worth to well over a BILLION dollars. Within a few years of that mark, he net worth was NEGATIVE and had to declare bankruptcy because of real estate. The process of building wealth in a controlled fashion over 6 10 years is so straightforward that I cannot see taking those kind of risks to make it happen in a much shorter time frame.

Chris Anderson is a leading authority on preconstruction real estate investing and has been referenced in many venues including the New York Times and USA Today. Get up to the minute information about preconstruction projects at GetPreconstructionDeals.com.

Hurricane Katrina And The Impact On Real Estate Prices

Writen by Matthew Keegan

In the wake of Hurricane Katrina’s wide path of destruction, the real estate market will be affected perhaps in ways not fully understood or expected. If recent hurricane recovery history holds true there will be several good things to come out of all destruction. Let’s hope so as those who live in the Delta region have suffered immensely.

In September 1989, a strong category 4 hurricane by the name of Hugo made landfall in the Charleston, SC area. Up to that time it was the strongest hurricane to hit the U.S. mainland since Camille whacked the Gulf coast in 1969. The damage from Hugo was extensive with entire forests wiped out and fishing villages and seaside resorts heavily damaged. Dire predictions of the storm’s negative effect on the local economy were made. I know, because I was living in the nearby town of Goose Creek when Hugo roared through; I witnessed a sustained and lengthy recovery effort for many months thereafter.

These were some of my personal observations of that hurricane’s impact on the housing market:

1. Housing stock destroyed. Yes, the number of mobile homes, apartments, and single family homes damaged or destroyed by Hugo was large. What had been a fairly open pre hurricane housing market quickly tightened up as the vacancy rate plunged to near zero as all available, undamaged property was suddenly snapped up. Rental rates, which had been on the low side, suddenly shot up and stayed up even as the housing stock was replenished over the next year. The net effect of Hugo was that older, substandard housing was replaced by more modern housing built with the latest building code requirements included. Rental rates rose accordingly to reflect the improvements.

2. Insurance payments. Although the property I was living in did not sustain much damage, some of the homes in our neighborhood did. Within days of the storm’s wake insurance agents were canvassing neighborhoods, filing claims, and issuing checks on the spot. The quick move of the insurers allowed people to run out and make needed repairs quickly. Oftentimes, the amount of the check more than covered actual damage thereby allowing homeowners to make both structural and aesthetic improvements to their properties. These improvements were credited with fueling the subsequent surge in local home prices.

3. Government assistance. FEMA cut its teeth on Hugo. Originally, much criticism was levied FEMA’s way because of the agency’s slow response to the disaster. It took several more disasters after Hugo before FEMA’s response time improved. Still, where private insurance companies left off, FEMA stepped in by cutting checks that allowed people to rebuild. Essentially, FEMA stepped in to help the uninsured or under insured recover. Plenty of homes that had been substandard before Hugo were replaced by homes that met current [and stricter] housing codes. The impact on the housing market was felt as this rising tide of support effectively lifted housing prices.

Every particular storm’s impact on a local economy is different. Unfortunately for residents in the Delta region, Katrina blew through after a particularly rough hurricane year in 2004. No, FEMA isn’t broke but the financial stress on insurance providers cannot yet be measured. Unlike with Hugo, where the recovery effort started immediately after the storm left, the Delta region is still in rescue mode and waiting for the waters to recede. I fully expect that it’ll be weeks before any sustained recovery effort can be launched and even then it will be a long, drawn out process as insurance claims are filed, local building codes are re examined, and the most important part - people - decide whether they want to rebuild in damaged communities or move away.

South Florida recovered fairly quickly after Hurricane Andrew devastated Homestead in 1992, but many central and panhandle communities in Florida are still reeling one year after a series of hurricanes tore up their homes in 2004. Again, much will depend on individual families willingness to rebuild and that is the untold story lying in the wake of Hurricane Katrina.

Matthew Keegan is the owner of a successful article writing, web design, and marketing business based in North Carolina, USA. He manages several sites including the Corporate Flight Attendant Community and the Aviation Employment Board. Please visit The Article Writer to review selections from his portfolio.

Expired Listings 7 Steps to Sell Fast and Get Top Dollar

Writen by Bill Carey

Over 50% of homes listed for sale do not sell during their listing period, in some markets its’ as high as 65%. The dirty secret in the real estate business is that most homes don’t sell on the first go around. Blame the agent blame the home owner both are at fault. 7 steps below will give you the best chance of your home selling first time out.

1)Price it Right - Far and away above any other consideration is the price. The worst home in the worst area at the right price will sell. Get your head out of the clouds, as a seller it’s just another house.

2)Hire the Right Agent - Interview 2 to 3 agents, hire the one who uses the most tools to market your home. The I’m No 1 and pat their self on the back real estate designations are not going to get your home sold.

3)Team Approach to Selling - Agents who use a team approach to their business have the right attitude towards real estate. Today’s single agent actually does 14 different jobs in the home selling and buying process. A team can spread the work load, specialize, and has less chance of dropping the ball (you and your house).

4)Advertising Systems - Where, when and how often will your home be advertised in newspapers and home magazines. We know that about 90 to 95% of calls on ads reject the house after receiving all the information. But it is a fact that advertising especially using a 800# call capture systems with a compelling ad will draw buyer prospects for your agents’ team to work with.

5)Signs and Sign Riders - signs with 800# call capture number. Show your agents web page address. Web page must have free reports and other areas for buyers to register. Sign riders offer compelling reasons for buyers to call the 800#, zero down, special financing, low down payment, Buy this house and I’ll buy yours for cash are some that work well.

6)Open Houses - One of the least effective ways to market a home. Saturday or Sunday afternoon for 3 4 hours you go to the mall and your agent hangs out watching TV. How about an open house tour 5 to 6 homes open the same day for 15 to 20 minutes each, the group goes from house to house creating an auction like affect and get to you stay home and see the show.

7)Visual Tours & Photos By using visual tours and multiple photos your agent will get your home placed higher on websites like Realtor.com. Almost 80% of home buyers start their search on the internet it is best for you to be at the top of the list. You can also email your home to friends, neighbors, co workers, hand out C/D’s at open house tours. Your agent will also send these out to the top agents in your area.

Agents with multiple approaches to the marketing of your home will work best for you. They are internet savvy have a team and support staff that can handle the various tasks involved with finding the right buyer for your home.

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see “Insider Real Estate Secrets Revealed” …a must read for Home Owners and Renters! It’s a F*R*E*E 12 lesson e course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars

See http://www.BillCareyRealtor.com and sign up for our monthly e newsletter with tips for buyers, sellers, home owners and soon to be home owners.

(Your Comments are Welcome)

Growing Problem in Real Estate Mortgage Fraud

Writen by Glenn Ginsburg

Mortgage fraud may continue to plague the real estate industry. Maybe, I am seeing only the 20% Fraud for Property/Housing, as defined by The Federal Bureau of Investigations.

Reasons why mortgage fraud may continue:

1) The escalating cost of housing and the “American Dream” of owning your own home.

2) Licensing for real estate agents and mortgage brokers is much too easy. The requirements for licensing need to require a greater level of education, more than a high school degree as a prerequisite for licensing and harder licensing requirements, such as more pre licensing education and harder tests. This will result in better people and less people entering the real estate profession.

3) Lenders need to offer less loan programs, for example, stated income loans (some refer to this as inflated income loans) and no doc (no documentation loans).

4) Most lenders require an IRS (Internal Revenue Service) Form 4506 at time of closing. Now, there is something that an underwriter or lender can request information and stop an inflated (aka stated) income mortgage application dead in its tracks. If they lie on their income tax return, is it possible that they would lie on their mortgage application?

5) Lack of educational programs in the real estate profession to identify mortgage fraud could be wishful thinking, due to the Privacy Act but at least a start. Where to report suspected mortgage fraud situations to the appropriate law enforcement authorities.

6) The credit reporting and scoring system needs an overhaul. Too often, I find errors on credit reports, where the creditor is not reporting timely or accurately information. For example, a customer settled in full his collection action in the later part of February ‘06. The collection agency in the later part of April is still showing a portion of the account as outstanding with a current date. Yes, they reported the payment, but did not remove the negotiated portion of the balance.

7) Lack of control points within the existing system.

What could possibly be done to reduce the mortgage fraud:

1) More checks and balances within the system to identify potential mortgage fraud situations.

2) More education for all real estate professionals real estate agents, REALTORS, underwriters, lenders, etc.

3) Greater licensing requirements for all. And licensing requirements where no licensing is required at this time.

4) Implementation of a “whistle blower” protection system and telephone hotline.

5) Proactive preventative action on the part of lenders.

6) Enforcement of Section IX “ACKNOWLEDGEMENT AND AGREEMENT” located on page 3 of the Uniform Residential Loan Application (FNMA 1003): “Each of the undersigned specifically represents to Lender and to Lender’s actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.;…7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan;…”

7) Enforcement of the paragraphs from the typical mortgage, which reference the borrower’s loan application and acceleration clauses: Borrower’s Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of the Borrower or with Borrower’s knowledge or consent gave materially false, misleading, or inaccurate information or statements to the Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower’s occupancy of the Property as Borrower’s principal residence. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower’s breach of any covenant or agreement in this Security Instrument…(d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property.

Better and possibly required education of prospective borrowers, so they can recognize the impact and identify situations.

Implementation of number 6 above will send shock waves into the communities and cause the less desirable professionals out of business and awareness to borrowers. Many may argue that this will be costly to the overall economy or lenders if foreclosure proceedings are needed, but in the long run there could considerable savings for all.

In summary, mortgage fraud may continue, until such time that the losses reach greater levels unless there is a proactive preventative overall program to curb it. Old country saying “you don’t close the gate after the horse leaves the corral.”

(c) Copyright 2006, Glenn M. Ginsburg. All rights reserved.

Glenn Ginsburg is a Florida Licensed Real Estate Broker and Mortgage Broker in the Naples real estate market for over 10 years. Also serving the Bonita Springs real estate and Estero real estate markets in southwest Florida. Glenn was selected as a 2006 FIVE STAR Real Estate Agent “Best in Client Satisfaction” from over 12,000 real estate agents in southwest Florida. He is the owner/broker of A Delta Realty of Naples Florida.

Exactly What Is A Bungalow, Anyway?

Writen by Amy Orr

According to Clay Lancaster’s The American Bungalow, the word “bungalow” originated in India from their word “bangla” for temporary or portable thatch roofed dwellings. These temporary homes were used mostly by British traders or soldiers during the 1600s and 1700s. The shelters were “purely utilitarian”useful for travelers, but not considered particularly stylish or comfortable.

In the late 1800s, the English began to build a more permanent version of the bungalow. Materials for constructing early English bungalows were available for purchase, unassembled, during the Industrial Revolution. These materials could be transported to a desirable location, where they could then be assembled according to the floor plan. The early English bungalows were built as vacation homesusually near the ocean or in a remote countryside spot. These new bungalows were more comfortable and more stylish than the first Indian bungalows, though they were not yet seen as fit for primary residences.

Bungalows soon appeared in the United States, also as vacation homes. But, according to “Bungalow Nation” by Diane Maddex and Alexander Vertikof, following the Arts and Crafts movement in Britain, the U.S. middle class called for more affordable homes “reflecting democratic, middle class values.” Gustav Stickley, owner of The Craftsman magazine, began to feature favorite bungalow house plans in his monthly publication. Companies such as Sears and Montgomery Ward began to offer their own mail order bungalows in ready to assemble kits. Bungalow plans and specifications were readily available and very affordable.

The bungalow became very popular with home builders across the country, especially during the 1920s. In fact, Bungalow Nation calls the bungalow “America’s first national house type.” A percentage of the U.S. population today are still enjoying some of these turn of the century bungalowssimple, yet efficient homes that are still charming all these years later.

Bungalows come in different shapes and sizesthough most were designed to use space efficiently and are not especially large. We are, perhaps, most familiar with the style of the California bungalow. But, according to a website titled “Bungalow Style,” (www.bungalow style.info/House Plans/Cotton Lumber/115.htm) there were “a great variety of house plans, designed to meet many different situations.” This website features numerous illustrations and information about the many styles of bungalows.

Despite the differences in styles, bungalows are generally characterized by a gabled roof, a sweeping, covered porch, an open floor plan, and efficient use of spaceoften with built in storage. Maddex and Vertikof claim that bungalows often include: “room dividers, bookcases, cabinets with art glass doors, fireside benches and inglenooks, window seats, radiator enclosures, buffets, wainscoting, plate rails, kitchen cupboards, a windowed breakfast nook, a folding kitchen table and ironing board, bedroom and linen closets, disappearing beds, medicine cabinets, a niche for the telephone.” A few manufacturers even offered furniturespecially designed for the compact space.

For more bungalow information, or to find stylish decor and furniture for YOUR bungalow, please visit www.poshbungalow.com