Timely Real Estate News…………………………………………………… 1 June 2009
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Homeowners beware….scams abound
In these challenging economic times, scams of many different varieties and flavors abound, and homeowners are not immune to being the recipients and victims of some of these “opportunities”. We are seeing an increase in solicitations from ‘helpful’ foreclosure consultants who are using half-truths and outright lies to lure clients and promise money-back guarantees and solutions to their problems. On a recent Today Show segment, Barbara Corcoran — the show’s real estate consultant — described the predators that are taking advantage of homeowners wishing to avoid foreclosure and/or wanting to re-finance or modify existing loans. One of the more popular frauds is the “Obama Rescue Plan Scam” in which some rescue companies are charging thousands to modify customer loans under the new Obama housing relief plan. However, Cocoran stated, you can find out all you need to know yourself and see if you’re eligible at www.makinghomeaffordable.gov or by calling 888-995-HOPE. There are an abundance of ‘creative’ scams that are being promoted aggressively by phone, e-mail, late-night TV ads, leafleting parking lots, posting fliers on telephone poles, and mailing letters marked “urgent” to vulnerable homeowners.
Fortunately, the Westside does not have the number of foreclosures found in San Bernardino or Riverside counties, but there are homeowners — or relatives of Westside residents — who want to modify existing loans or avoid the foreclosure process. The point is: Be careful with any solicitation that comes your way. The ‘con practitioners’ are using a variety of tried/true schemes such as “bait and switch”, rent-to-buy, the middleman and bankruptcy scams. At first blush, their solutions sound very legitimate and because there is a lot of confusing information out there, it is easy for the unsuspecting to be duped. The fast-talking, smooth sales people especially prey on the elderly and those who might be in dire need of an immediate ‘fix’.
Common ‘red flags’ to watch out for — up-front charges; a promise to stop your foreclosure no matter what; “don’t talk to your lender I will take care of that for you!”; ‘I’ll fill out the paperwork for you’; and solicitations by mail, e-mail, and phone or in person…. The worse scammers will even play on an alleged connection with you…like attending the same religious institution or having also come out of the military. It is surprising how much information there is out there on all of us, and so easy to find.
Some “dos and don’ts”….
1. Make sure the housing counselor is certified by the Department of Housing and Urban Development;
2. Always use an attorney — well worth the money.
3. Listen to your ‘gut’….if it’s too good to be true, it always is.
4. Ask for references.
5. Don’t believe the ‘money-back guarantee’…by then it’s too late.
6. Do not sign over your property or a contract to sell.
7. Never grant power of attorney to a stranger.
For more information, you can also go to the Today show web site today.msnbc.msn.com and see a copy of this segment. It is really scary stuff!
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Getting your tax bill reduced….I can help – no charge!
In addition to the home refinancing scams going on, there have also been scams with companies charging outrageous fees for property owners to file for a property tax re-reduction in light of declining property values. As I pointed out in my March 15 SchifferLine, I have had many questions from neighbors and readers of the SchifferLine — is this a good thing to do? Yes, it is — IF, and it’s a big if, you have a property that can clearly demonstrate its value has dropped significantly and there are comparable sales from the last three months that will verify the loss in value. They will not take any sales (closed escrows) any older than three months.
I will be more than happy to assist you in having this done. If you go to the website for the LA Country Assessor — http://assessor.lacounty.gov/extranet/default.aspx –, you will see that there is a very simple form that needs to be completed along with some comparables of sales of properties which I will give you. Please give me a call at 310-442-1384, or shoot me an e-mail at ceschiffer@aol.com, and I will be glad to help you on this.
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While home prices take a fall, leasing rates are falling, too
If you’re having trouble selling your home for the price you ‘think your home is worth and want to move, and are considering leasing it instead, be aware that leasing prices are taking a hit, too. I represent several landlords on the Westside who have been leasing their properties in some cases for the last four to five years as income property. With the decline of home prices continuing, homeowners look to the leasing alternative and are finding that leasing rates are not what they used to be. For example, one leased property I manage was originally leased four years ago for $9,500, then two years ago, that amount was reduced to $9,000 a month, and now that the lease is about to be up again, we are looking at a lease amount in the $7,000 range.! That’s a big drop — and landlords should recognize that renters are having their pick of quality properties at rates that reflect the corresponding drop in home values. There is also another ‘cost’ to consider: Finding a tenant who will treat your home like you do. That’s not always possible, so you have to factor in the expense of “putting it back together” when the tenant leaves, plus the actual management of property with you being afar, no matter how far away or close you might be.
My recommendation to any homeowner who is seriously considering leasing their home is to give me a call so that I can give you a professional estimate of what your home should lease for. This continues to be a volatile market with daily shifts in pricing and values….maximizing your home’s value — whether pricing it to sell or lease — is your priority and mine, too.
If you do decide you want to lease your home, I might add that one of the additional services I can offer to you as my client through Coldwell Banker is the professional management of your property.
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Things to do this summer….it’s almost here
OK….Summer doesn’t officially arrive until June 21, but Memorial Day is the ‘traditional kick off’ of the summer season. With everyone feeling the economic pinch today, a lot of us are looking to stay closer to home this summer rather than “take off on a summer holiday”. With that in mind, and because there is so much to see and do in our Southern California — and to help you plan your Summer holidays — I have sent you a handy guide to many of Southern California’s attractions. If for some reason you don’t receive this in the next few days or need an extra copy or two, please e-mail me (ceschiffer@aol.com) and I’ll make sure you get what you need.
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Doing your part to conserve water!
I have done some research on the conversion to equipment and use of Grey Water, and unfortunately as much as I love the concept, we are not there yet, and perhaps may not get there. There is some equipment from Australia that is being sold here, but as far as I can tell it really is not wonderful and keeps breaking down. So if you know of any programs that are effective in converting some of the water in our homes to grey water… I would love to hear about them. In the meantime, we all need to give some thought as to how we can save water. Here are some ideas:
Did you know that bathrooms usually account for 75% of the water used inside the home? I didn’t… We all know the obvious… take shorter showers, leave the water off while brushing our teeth. But are a few other suggestions: Turn the water off while you shampoo and soap –then turn it back on again to rinse off. It will be cold enough that we will be forced to take shorter showers; repair dripping faucets – a dripping faucet at one drop per second equates to a waste of 2700 gallons per year! Dispose of tissues, insects and other waste in your trash rather than the toilet. That will save up to 200 gallons per month.
The kitchen will be covered next time!
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Thank you again for all of the wonderful comments about the SchifferLine. I cannot tell you how much I appreciate them.
