Tina in Virginia - Hampton Roads Real Estate

5 Things Agents Need to Think About with Short Sales

Tue, 07 Jul 2009 18:21:15 -0500

I know I am in the minority here when I say agents should not be negotiating short sales. (which I have written about ad nauseam) I am fully aware that in some markets, 90% of the housing inventory is a short sale or REO. Every time I turn around, I see some other "agent expert" hawking their short sale how-to book or "qualifying" designation. Unfortunately, short sales are part of the real estate business in 2009; however, we are in unchartered waters as agents and I hope that in 10 years, the real estate industry doesn't look back on this and say, "what were we thinking?".

1. Does your E&O insurance specifically state that you are covered to engage in a short sale? I asked my insurance company this and the answer was, "yes"; however, the policy doesn't specifically state "short sale" nor any of the acts normally associated with handling a short sale. The policy does state that I will not be covered for acts as an agent, "not expressly described herein".

2. If the sellers currently have a government mortgage and they sell it short, will they be able to get another government loan (including a government backed student loan) unless they pay the difference? From what I have read with regards to VA loans, the answer is "no".

3. With some banks, if the property has fallen in value to a point where it is not worth more than a certain amount (say $25,000), they will not foreclose. Of course, they do not advertise this; however, they will just release the lien on the property.

4. We are not just dealing with sales prices here. We are dealing with the futures of these sellers. Let's say seller A sells short, is required to liquidate his savings and starts having his wages garnished for the difference 2 months later. Seller B, same mortgage company, same shortage, doesn't have to liquidate anything and the bank agrees to no deficiency judgment. Is seller A's agent at fault for not negotiating better with the bank?

5. How does your licensing board address agents handling short sales? The licensing board in Virginia doesn't specifically address short sales; however, it is VERY specific about agents performing duties that should only be handled by an attorney. Is negotiating a short sale with a bank (who is not a party to a standard sales contract), a "ministerial" act for an agent, or something with legal ramifications that should be handled by an attorney?

My husband works for a large bank. Everyday, they get calls from former sellers complaining that their wages are being garnished, the bank placed a lien on their other property, they lost their job because of their credit (yes that really happened) etc., and that "my agent never told me this would happen", or, "my agent told me the bank could do this, but the bank's so swamped, probably won't".

Sorry, unless a real estate agent has a crystal ball and knows the long term ramifications of a seller doing a short sale, I don't think they should be calling themselves a "short sale expert". Even the most "experienced" agents working short sales have only been dealing with them for what, 3-4 years tops? That's not the making of an "expert" in my opinion.

Tina in Virginia

Burton's Grill Charity Event for David Spisak!

Tue, 07 Jul 2009 10:40:29 -0500

Thank you to Patrick Veverka for bringing this to my attention!

"Amber and David Spisak Sr., a young Virginian couple were out having dinner with their two children; Molly who is four years old and David Jr., who is only two years old. During dinner, David Jr. began to develop small red spots on his arms and legs and before long, the spots had grown in size and eventually covered the young child’s entire body. The family quickly rushed their child to the Emergency Room. The doctors there told them that they thought they knew what it was, but they had to take him to Children’s Hospital of The King’s Daughters facility immediately. Within hours, the young couple was told that their two-year-old David Jr. had Acute Lymphoblastic Leukemia. Medical professionals immediately admitted him and began running tests to find the subcategory of the disease to determine the type of treatment the young boy would need. Little David Jr. is currently less than 2 months into a 3 ½ year Chemotherapy treatment, he has already lost all of his hair, has had numerous painful spinal taps and bone marrow tests, and is currently unable to play or move under his own power. David Jr. is extremely weak and is unable to understand at his young age why his parents are allowing the doctors to put him through all the pain he is currently experiencing. Even more troubling, the parents of little David Jr. have been struggling to pay for their son’s prescriptions, as their PPO insurance will not cover the necessary medications for his treatment.

[Hope] - “Two things Virginian’s are good at are having a good time and coming together to help each other,” said James Lee a close family friend of the Spisak family and a local Real Estate Developer. It took Mr. Lee literally minutes to put together a “Fun-Raiser” to help little David Jr. and their family. The event being held on July 16, 2009, had been planned months ago with several local vendors offering amazing auction items, supplies, entertainment and more. Less than one week ago James was informed that the planned venue would be unable to host the event do to fiscal restrictions. James was in a crisis and it looked as the event may possibly be cancelled. On a whim, James sent a Facebook message to one of his newest friends “Burtons Grill” in the hopes that even on short notice they might be able to do something to help. “It was pretty amazing,” said Lee. Within 10 minutes the Burtons Grill team responded to James, cancelled all their reservations for the evening, and Manager Kevin Rowell had his Boston-based Public Relations agency on the phone ordering them to assist Lee in creating the event. “There was no question in my mind that when I heard about this little boy’s story we’d jump into action. We are part of this community and I am a Father. I would hope people would do the same for me,” said Kevin Rowell, Owner of Burtons Grill Virginia Beach.

[About The Event] – The David Spisak, Jr. Fun-Raising Charity Event at Burtons Grill, located at 741 First Colonial Road in the Marketplace at Hilltop, Virginia Beach, will be held on Thursday, July 16, 2009 starting at 4:00pm and will run until close. There is truly something for everyone at the event. The indoor and outdoor event will boast live music and entertainment including a visit by the Monster Truck StoneCrusher for the kids beginning at 4pm in the parking lot, live music provided by The Barry Eugene Group, Mike Federali, and many special celebrity guests. Free light passed hors dœuvres will be available; as well as amazing cocktails, beer and wine on a cash bar basis (percentage of all proceeds this evening to go to the Spisak family). But, you can really break out your wallet for this good cause by ordering from the $5 bar menu, enjoying the numerous hand-crafted cocktails, or if you call ahead of time and make a dinner reservation in the dining room and mention you’re “Dining for David” - 25% of the entire proceeds of your dinner will go directly to David’s family.

The event will also boast a live auction starting at 8:00pm featuring generous items donated from various vendors. Here is a partial list of the items that will be available to bid on:

Some auction items include:

1. Lunch with the Mayor of Virginia Beach Mr. Will Sessoms
2. Autographed New England Patriots Helmet and Football from star Ben Watson
3. Autographed Norfolk Admirals team stick
4. Private Holiday Dinner for 12 with cooking lesson from New York Chef Thomas Mosquera of the Garrison resort
5. Limited Edition 1 of 1000 David Cronenberg unpublished screenplay Red Cars
6. Autographed Lord of the Rings Book by Director Peter Jackson
7. Several A night out in Virginia Beach packages
8. Childs party for 25 at Kangaroo Jacs
9. Custom Beer Pong Table from Virginia Beach Beer Pong
10. Private and group Yoga lessons

and much, much more. Open your hearts, open your wallets and get down to Burtons Grill on Thursday, July 16, 2009 from 4:00PM – Close. “I can’t thank everyone that made this event a reality…I’m truly moved and hope people will come out to help this little boy,” said James Lee the event organizer. There is no cover charge for this event, no dress code… and all we need is you.

WHO: Burtons Grill

WHAT: David Spisak, Jr. Fun-Raising Charity Event at Burtons Grill.

WHERE: 741 First Colonial Road in the Marketplace at Hilltop, Virginia Beach, VA, 757-422-8970 or visit www.burtonsgrill.com

Make Burtons Grill your lunch destination and never brown bag it again. For more information please call.

###

About: Burtons Grill Virginia Beach located at 741 First Colonial Road in the Marketplace at Hilltop, Virginia Beach, VA is the perfect place for lunch, after-work drinks, dinner inside, or on their outdoor patio. Call 757-422-8970 for reservations or visit www.burtonsgrill.com. The hours of operation are Mon - Thu: 11:30 am - 10 pm, Fri - Sat: 11:30 am - 11 pm, Sun: 11:30 am - 9 pm. Burtons Grill is an upscale casual restaurant serving contemporary American cuisine."

What to Do When the Neighbor's House is an Eyesore???

Sun, 28 Jun 2009 20:04:49 -0500

Do you have a neighbor who seems to only mow the yard when it has grown so high they can't find their car that's parked on the lawn?

Someone who has a boat parked in the driveway that hasn't seen a body of water in years?

How about a house with a broken fence or siding with peeling paint?

A neighbor who doesn't maintain their home brings down the value of the whole neighborhood.

Most municipalities have an office that is in charge of enforcing neighborhood preservation. Usually, all it takes is a phone call and an inspector is dispatched to the offending address for an inspection. Once a homeowner is cited, they city or county then gives the owner a certain period of time to clean up their act or be fined. In most areas, the inspector will return to ensure the problem has been rectified, or will take further action against the homeowner (such as the City mowing the yard and then sending the homeowner a bill).

In the Hampton Roads area, the following City offices handle complaints. Complaints are made anonymously so do not worry about retaliation from a fellow neighbor against you.

Virginia Beach: Department of Housing and Neighborhood Preservation, Code Enforecement: 757-385-5750

Chesapeake: Neighborhood Services Department: 757-382-6018

Norfolk: Department of Neighborhood Preservation: 757-664-4000

Portsmouth: City Department of Code Enforcement: 757-393-8531

Suffolk: Neighborhood Development Services: 757-514-4150

Hampton: Codes Compliance: 757-727-8311

Newport News: Code Enforcement - Property Maintenance: 757-926-8861

Poquoson: City Permit Office: 757-868-3035

Isle of Wight County: County Administration: 757-365-6204

FREE Virginia Beach Relocation Package!

Tue, 23 Jun 2009 19:36:00 -0500

CLICK TO VIEW LISTING WEBSITE
Description and Features
Whether you are relocating to Norfolk, Virginia Beach, Chesapeake, Portsmouth, Suffolk, Hampton or Newport News, we can help! Contact us today for your FREE no obligation relocation package for the Hampton Roads, Virginia area. Our relocation package includes an area guidebook, maps, information on area attractions and much more!
Links
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SHOULD I PAY MY MORTGAGE?

Tue, 23 Jun 2009 18:39:31 -0500

Via Richard Zaretsky, Florida Real Estate Attorney (Richard P. Zaretsky P.A. ):

This seems to be THE NUMBER ONE question I get. Unfortunately there are several answers and which is correct for you depends on the Circumstances. I will address the common scenarios in this article.

Policy in my office is to never "tell" - as in "instruct" - our borrower client to pay or not to pay their mortgage. Paying or not paying has a lot of collateral effects and the borrower needs to know what they are before making the decision. We don't make the decision for the borrower (our client) because the effects of paying or not paying are not going to affect me - but they will affect the client, so it is the client that must make the final decision.

Let me make one issue clear - when we are hired to help facilitate a short sale or loan modification it is far easier for us to negotiate with the lender if the payments are late, but it is almost never a requirement. The exceptions to which will be discussed later in this article. Additionally, internal rules change at the banks constantly. A new client came in totally frustrated. They called their bank to help with a modification and the bank said they could not address their situation until they were at least 60 days late. So the near perfect (800+) credit score couple stopped paying for 60 days and then called the bank back. Now the bank says that because they are 60 days late they cannot speak to them about a modification! The point is, if you don't have to be late then why voluntarily create a late payment credit history that will adversely affect your credit-dependent life almost immediately and for years to come?

SO LET'S GET INTO IT - Danger - this is a long article and it covers a lot of ground!

Short Sale:

A borrower that is current and contemplating a short sale wonders if they should stop paying their (first) mortgage. They are upside down and until now they have been current. However they are paying the mortgage at a cost of not paying other bills. (Other or different facts may be that they are paying all their bills but taking the money from savings or a pension fund to make those payments, or they are borrowing money from another equity loan).

Generally, it is not a good idea to get into debt to pay your mortgage, unless you have a solid plan to both (i) keep the mortgage current and (ii) repay the additional indebtedness you are creating. It is not like taking from one pocket to put into another - it is more like taking from someone else's pocket to pay your bills. This would include credit card loans as the source of funds. It all has to be paid back, so if you don't have a plan to pay it back, don't borrow it in the first place! You are only digging a bigger hole for yourself and making it harder to get out of the hole.

If you are taking from your pension or savings money, again you better have a rock solid plan to get that money back into those accounts, or there is no sense in giving up that hard earned and usually irreplaceable retirement money, especially considering these are monies that are usually protected from creditors' judgments including those your mortgage lender could obtain (deficiency judgment)..

Of course the "amount" of money you have "in reserve" comes into consideration. If you have 2 million dollars in reserve and you decide to spend 10% of it to keep the loans current until you can short sale the property, that plan has a basis that the 10% is not going to make a difference in the way you run your life over the remaining time you have left as a mere mortal.

Sometimes, but rarely, we run into a lender that says they won't approve a short sale or modification because the borrower is current with his payments. When we have encountered this it is in most cases associated with a government backed loan, (but later on we will show you why this may be motivated by plain greed on the part of a loan servicer). A properly compiled financial snapshot of the borrower should show why they are current and what will happen if the short sale or modification is not approved.

Your decision on how to proceed should be based on what goal you are trying to accomplish and how you plan to get to that goal (see how to determine your goal).

Mortgage Modification:

Apart for some voluntary government programs regarding (Fannie Mae or Freddie Mac) government involved mortgages, I know of no lender that absolutely will not deal with a borrower who is current with their mortgage payments. Lenders deal with all sorts of situations and "absolutely not" is just not in the vocabulary. A typical borrower calling a lender may hear that they must be late, but that is more of a "vetting" statement than an absolute policy.

The exceptions are some government program guides for modification. The first step to seeing if your loan comes within this exception is to see if it is a Fannie Mae or Freddie Mac loan. You can do this online at the Making Home Affordable site. Many servicers and lenders whose loans are not "government backed" are now choosing to follow this government plan (known as the Home Affordable Modification plan or more affectionately called the "Obama Plan" - see below) for the simple reason that they are being compensated by the government for each successful modification they execute within its guidelines, and either the servicer or lender receive a residual bonus for the loan staying current under the modification. In these cases we have seen non-government backed loans insist on the borrower being late to qualify for modification as well. What is confusing on this point is that when the plan was introduced it included modifications (and compensation for such) for current loans as well. However, we are told time and time again from the lenders directly that they must be late to qualify. There is no such rule in the guidelines.

While this is contrary to what has been published by the government about the plan, keep mind that following the plan and any of its various aspects is entirely voluntary and up to the Lender or servicer. They can pick and chose from this plan as they see fit for their own internal reasons. Here is a more interesting twist - a servicer that modifies a delinquent loan is paid more under this incentive plan than if the borrower were to modify while the loan is current! If the borrower is current, the servicer can receive up to $3,500 in incentive fees from the government. If the borrower is delinquent, the servicer can receive up to $4,000 in incentive fees from the government. Thus it seems that it pays ($500 to)the servicer to encourage a borrower to be delinquent!

We often see a client that fits the profile for modification under this government plan. Some of these plans are said to require that to be qualified the borrower must be late 60 days (see Guidelines page 5 at bottom). But in fact, being late is not a requirement, but only one factor of many (see Guidelines page 16 at the top - "However, a NPV (net present value) positive result is not necessary to qualify a loan for a Home Affordable Modification"). If the goal is to qualify under such a plan as put in place by the lender at that time, then to accomplish that qualification the borrower may need to make themselves late, but that cannot be determined in a 2 minute telephone call with a lender representative. I cringe when we go this route because just like these "plans" came into existence, I can see them change the plan thus leaving the now 60 day late borrower with ruined credit scores that occurred needlessly.

Generally about a quarter of our modification clients never go late and still get a modification offer from the lender. However, keep in mind that nearly all lenders put up as their first line of defense the policy that going late is a necessity to qualify. We can only speculate this is done to deter the enormous inflow of loan modification requests from borrowers that would come in if this was NOT said to be a requirement. It also helps address those in the most dire amount of need first.

The Pro's and the Con's:

The general rule of thumb we use is if you can pay your mortgage and maintain your life's necessities, you may consider keeping the loan current, taking the points in this article into account. However, if you need to choose between buying food or medications and paying the mortgage, the decision that should be made is clear: your life necessities take precedent.

Here are the pro's to consider when in the short sale or modification process. Keeping the loan CURRENT has the following benefits:

a) Your credit score is not dinged until the short sale transaction occurs (and not at all in most loan modifications) and your overall credit score reduction will be minimized, and b) You will remain in good standing with your lender without worry of penalties, fines, or a foreclosure.

The "con's" of keeping the loan current are that:

(a) You will be out of pocket for the monthly mortgage payment (monies which you may or may not need to survive), and

(b) Your lender may question the sincerity of your claimed hardship, and you may be spending funds that would otherwise be potentially (but rarely) forgiven by the lender. In addition, occasionally the lenders in a short sale may require a lump sum payment above the sale amount from the borrower to forgive the debt. Coming up with that money is sometimes the difference between a deal or no-deal. If you can put your mortgage payments aside and stockpile them, it will help you cover that potential lump sum.

A similar pro/con approach applies to GOING DELINQUENT with your mortgage. In favor of going late is being able to keep the unspent mortgage payments in your pocket (or applied towards other necessities as the case may be) in which event your hardship may appear more sincere to the lender. On the other hand, there are very real consequences to going late with your mortgage payment:

a) You WILL incur late fees and other penalties on the late interest. Usually this is not a large issue as it is part of the forgiven debt in a short sale and usually forgiven in a modification, but it is something to consider,

b) Your credit score downgrade will be harder as you will compound the short sale hit with a 30 day late, 60 day late, etc, (and if this is a modification you will make a non-negative credit score event turn into a negative credit score event), and

c) You will eventually cross a threshold (typical industry standard of 90 days late) where the lender will initiate a foreclosure action in State court.

Going Late on Your Second Mortgage:

Often a borrower comes to us and says that they are late on the first mortgage but current on the second mortgage. The second mortgage is almost always totally upside down with no equity left in the property to secure that financial obligation. The borrower says they paid the second mortgage because they had the money for the smaller payment (second) mortgage but not the larger amount first mortgage. Our answer - if you don't pay the first mortgage they are going to foreclose it and then paying the second mortgage is not going to save your house.

Lately we have seensecond mortgage lenders with 90 day late mortgages skipping the foreclosure process (since if they cause a sale of the house it is sold subject to the first mortgage, and thus any buyer still has to pay the first mortgage, which usually makes no economic sense). Instead the second mortgage lender sues the borrower on the promissory note only and gets a money judgment that they can keep for a long time (20 years in Florida).

So if a client says they are paying the second mortgage but not the first mortgage, we usually suggest they look at the common sense approach and what are they likely to gain or lose by doing so.

Effect of Non-Payment / Late Payment on Credit Score:

This is a big question and nowhere is the answer clear cut. Definitely if you get a report on your credit that you were "late" (in mortgages that means 30 days or more late) then your credit has been "dinged" and your credit score is adversely affected.

Credit scores are used for many purposes, including the amount of credit you can get on a credit card, the interest rate you get on credit cards, car loans and mortgages, your ability and price of life and disability insurance and even car or house liability insurance, your ability to get a certain type of job, or to establish business relationships, and your ability to rent a place to live, to name a few. So credit scores are important. If you want to better understand credit scoring you can see the Federal Reserve Board's Report to Congress from April 2008.

How much your credit score is affected by a 30, 60 or 90 day late report depends on a lot of other factors about your financial well being, your past credit history and myriad other issues. Generally though we have our clients reporting drops of as little as 50 points for a no late payment short sale or up to 150 points for a short sale with multiple late payment reports. We have seen an 800 go to 720 and we have seen a 740 go to 500. It all depends on too many uncontrollable credit issues to be able to give a formula that works for everyone. For a discussion on credit scores this our past article.

Confused?

Rightfully so. The fact of the matter is that we are in uncharted waters and there is no industry standard for Short Sales or Loan Modifications, which makes pinning down exactly what the Lenders may do near impossible. Pile on the fact that there are a large number of lenders out there and each have their own internal policies which change as readily as the tides. The best anyone can hope to do is make an educated decision, set a plan, and be ready for anything.

Copyright 2009 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at SHORT SALE AND LOAN MODIFICATION TABLE OF CONTENTS

RE Bar Camp Virginia Beach in less than 30 Days!

Tue, 16 Jun 2009 21:47:39 -0500

We cannot believe how fast time has flown by since we decided to bring the RE Bar Camp "phenomenon" to Virginia Beach!

While the RSVP page shows we are filled, we are still accepting names as we expect to have some no-shows (boo!!!).

The 411 On The Event
- Who: Any Real Estate Professional and industry experts who have a DRIVEN desire to LEARN and SHARE
- What: Open session gathering of experts in Real Estate, Marketing, Technology and Social Media. This event is FREE
- When: 10am - 4pm Thursday, July 16th, 2009
- Where: Buffalo Beach Hilltop Plaza
  1725 Laskin Road, # 501
  
  Virginia Beach, VA 23454
  
  757-422-WING (9464)
  *Free Wi-Fi*
- Why: REBarcamps are great events where industry experts around the nation gather to participate in Learning, Sharing, Networking and Motivating. Expect a highly anticipated Engaging and Fun event to improve our overall success in our business.

If you, or someone you know, would like to get their company name out in front of lots of industry professionals, please let us know! WE NEED SPONSORS! For just $250, sponsors get great exposure on the website, on Facebook, Twitter, emails and more.

Get more info. at: http://rebarcamp.com/vabeach

How Many Brokerage CEO's Can You Name?

Wed, 10 Jun 2009 16:32:00 -0500

Earlier this week, I had an IRL conversation with the lovely Lisa Sanderson (IRL = "In Real Life" for those of you not using Twitter). While the purpose of the call was a referral I had for the Poconos area, as typical females, we ended up going way outside the subject at hand and on to other things.....

"So, Lisa, how do you like Better Homes and Gardens Real Estate?" I asked. (As you may or may not know, the Better Homes and Gardens real estate franchise is coming up on it's 1st birthday this August.) Lisa's response, "I love it and here's why........"

After telling me about the great technology and gushing about the company philosophy, Lisa mention Sherry. Sherry - as in Sherry Chris, the CEO of BHGRE. Sherry - as in @BHGRE_Sherry on Twitter. Sherry - as in a presence at virtually every RE Bar Camp and Real Estate Conference this year.

If you are active in social networking in real estate, you probably know Sherry. She probably follows you on Twitter, Facebook, LinkedIn, ActiveRain, etc. If you have attended real estate conferences, you have probably seen her mingling at the after-party. She isn't loud, she isn't boisterous.....she's just....a presence. She is also the only large-brokerage CEO I can name (besides the one at the company where I work).

In just one year, Sherry has been able to put BHGRE on the map in part through networking and engaging with agents throughout the country. Rather than sit back in a plump leather chair in a big corporate office, she is out networking, mingling and getting to know the agents, the "worker bees".

So, while the other large-brokerage CEO's are sitting at their desks trying to figure out how to make the indians work harder for less of a split so the chiefs can keep their jobs, Sherry Chris is out meeting their agents and engaging with them. Who do you think is doing a better job of connecting with the agents?

Here's a little quiz, besides your own company, how many brokerage CEO's can you name?

Tina in Virginia

Renovated Cape Cod Home in Portsmouth Virginia

Mon, 08 Jun 2009 21:40:00 -0500

CLICK TO VIEW LISTING WEBSITE

Description and Features

Welcome to 3308 Brighton St. in the convenient Westhaven area of Portsmouth. This cape cod features lots of "new", including: new roof, new hvac, new hot water heater, new windows, new carpet new kitchen and much more! Seler will pay all of buyer's closing costs.

Bedrooms:	3
Bathrooms:	2
Parking Spaces:	1
Square Feet:	1400
Lot Size:	5663
Year Built:	1941
Floors:	2
MLS #:	0920516

Location

Click to view map: 3308 Brighton St. Portsmouth VA 23707

Links

What to tell your clients when you're at REBarcamp

Tue, 02 Jun 2009 11:21:34 -0500

If you have not made plans to attend an RE BarCamp....you have no idea what you are missing!!!!

Via Scott Sambucci (Altos Research):

Another week means another REBarcamp! On Friday, it's the Salt Lake City version of this wonderful event. If you're new to the REBarcamp events, learn more about it here. Thank you to Rob Aubrey and eveyone else that's been organizing.

Yes, I know what you're thinking - "But it's on a Friday, and I have soooooo much to do to prepare for the weekend. Buyers ready to take a second look at the house their considering, meetings with sellers, getting ready for the final Spring-time push as schools start to close and parents are preparing to move this Summer."

And that's EXACTLY why you should take time for your day to attend REBarcamp-SLC on Friday. Huh?

Check out what these attendees from the REBarcamp-Phoenix had to say:

http://rebarcamp.com/phoenix

Need more convincing, well, as Dale Chumbley put it -

It's the middle of the Spring and you're busy (woohoo!). But, like every good business owner, you have to continue to develop your own knowledge and business with fresh ideas. What do you do when the phone rings on Thursday evening or Friday morning while you're on the way to the day's event and someone needs your help?

Here's what Dale suggests you tell your clients:

Thank you for the call, I’m happy to help you. Unfortunately, I’m already scheduled full on Thursday (every other professional in the world does it, why don’t we?). However, I’m available this weekend of Monday. Which works better for you?

Beautiful!

You owe it to your business, your clients, and yourself to make this the "boulder" in your time schedule.

Need more convincing? Check out the real-time conversations on Twitter from agents and the topics that have been covered in other recent REBarcamps, including links to more about the presentations and learning sessions:

Portland, OR

Philadelphia, PA

Denver, CO

If you're serious about learning and building your real estate practice, then this is a MUST! This is a free event - you just need to register and the rest is up to you. I'll see you in Salt Lake City.

-----

Follow the the REBarcamp-Salt Lake City events on Twitter:

REBarcamp-Portland: #rebcslc

Why Not Wednesdays? FREE Concerts at Virginia Beach Towne Center

Mon, 01 Jun 2009 20:36:20 -0500

FREE Concerts every Wednesday this summer on the Sandler Center Outdoor Plaza at Towne Center in Virginia Beach!

Starting Wedensday, June 3rd, 2009, spice up your Wednesday nights and kick back with FREE live music and lots of fun!

Drinks will be served on the Plaza, along with games, prizes, face-painting and much more!

From June 3rd to September 9th, 2009, the concert series will occur every Wednesday night from 5pm - 8pm.

Click here for more information on this weekly event in Virginia Beach!

Put up a Sign....Get a $2500 Fine in Virginia

Mon, 01 Jun 2009 12:02:47 -0500

Agents beware!

If you are using temporary signs (the plastic, wood or metal signs which attached to a stand), you may be violating Virginia’s Underground Utility Damage Prevention Act !

Violating this act can result in fines of up to $2500.

Many agents think that Miss Utility needs to be called to mark utility lines on when installing a post sign. Apparently, that is not true.

The SCC is also including the small metal framed signs that you push into the ground with your hands! They feel that the installation of temporary signs falls under the definition of “excavation” which is prohibited without the proper utility markings.

There is an exemption to this rule! The HOMEOWNER can install the temporary sign without calling Miss Utility first.

To read an article from the Virginia Real Estate Board regarding this issue, click here.

Approved by Cartus?= 40% Please

Sun, 31 May 2009 11:49:31 -0500

Frank Llosa always writes very thought provoking posts. Whether you agree with him or not - he makes some very good points here.

Via Northern Virginia Homes - FRANKLY REAL ESTATE Inc:

Cartus relocation company is a CROC! (that is an opinion, for more opinions Google Cartus sucks).

Actually many "relocation" companies that are supposed to help the employee are just fronts for making profit. And they have such a compelling pitch! How could an eligible buyer actually decide to bypass them? EASILY!

I'll explain exactly why you might want to bypass your relocation company AND how you can use PART of their system to your benefit and ditch the other part.

Why am I picking on Cartus? Cuz I was robbed. I got this email the other day:

Hi, I'm moving to Virginia with my job in a month and my fiance and I are a big Frank fan! {Name Omitted} recommended you to us. We love the website and reading/listening to your blog. And, we'd like to go with your realty firm when we purchase a place in Northern Arlington this summer. Fortunately for us, my company (XYZ) is willing to pay Realtor's fees and closing costs but I need to approve you as a realtor/realty before they will allow us to get started.

I added the emphasis.

1) Fortunately for us. Wow, the company is so gracious. They really care about their employees. Consider it a benefit like healthcare. They will pay Realtor fees and closing costs! (end sarcasm here)

Ok, first of all when you are buying, there are NO "Realtor fees" (sidenote: ha, I wonder if they pay for the bogus Realtor Admin fees which the Washington Post, link, just covered and cited my blog) per se because the Realtor fees are paid by the buyer. But it surely makes for a good BS pitch in the brochure. Why not also add: free keys! As for the "closing costs" I'll get to that shortly...

2) Approve you. Approve me for what? Make sure I'm good? Knowledgeable with people that are relocating? Maybe a quiz or a check for references? No. None of this happened.

I knew the "approve" the agent sounded fishy. I warned the buyer... I said "I bet they are up to something."

Finally Cartus contacts me. I get an email that effectively said: You are approved when you agree to give us 40% of your commission. (actually it said "registration entails a verbal agreement of a 40% referral fee.")

Are you F-ing kidding me? "Referral fee?" Did they refer business to me? Hell no. These buyers found me on their own. They were a personal reference from a friend that felt like they got great service. And Cartus demands 40% to be part of their program. What is this Robin Hood? Take from one to give a another? And keep a little for profit in the process?

So here are the details for their program, I am a fine print reader, so at the end I will try to parse this out for you.

CARTUS HOME PURCHASE CLOSING COSTS

There are numerous expenses associated with the purchase of your new home that vary by state and local custom. You will be reimbursed for buyer’s expenses customary in the new location; which should be discussed with your Cartus Relocation Consultant.

In all cases, only one set of lending fees and one-time closing fees will be reimbursed. Fees and charges most commonly recognized for reimbursement are:

Abstract or title search, Amortization fee, Application fee, Appraisal fee (1), Attorney fees (where required by state law), Certified copies, Credit report (1), Document preparation fee, Escrow fee, Guarantee fee, Inspections that are normal and customary for the area (termite, well/septic),

- Loan origination fee not to exceed 1% of the mortgage amount. If you do not contact Cartus prior to beginning the home purchase assistance program, you will not be eligible for the 1% loan origination fee.

Homeowners title policy for new construction only, Lender's Title Policy, Messenger service fees/express shipment fees, Notary fees, Recording fees, Settlement or closing fee, Survey, Tax service fee, Title examination, Underwriting fee

Isn't it fun making a really long list of fees that are paid? Even though many of them are next to nothing. I just pulled up a HUD1 for a buyer (note that fees can vary by closing company and frequently get renamed and shuffled around).

Here are a few of the next to nothing fees on the list that you get FREE!!: Notary Fee= $0, Messenger= $55, Tax service fee $0, Recording $65, Termite $35, Credit report $14, Title examination=$0.

The fees that have some real value: Survey= $265 Settlement fee=$195 Title Search=$175 Lender's title insurance=$1,800 (on a $650k VA home, reissue rate) NOT present in the list of closing costs: Owner's title insurance= $1350 (except for closing costs) Read more on Owner's Title

Conditional costs. Ie IF, a big IF, you use their "approved" Realtor. You get: Loan origination fee 1%. Lenders have a ton of names for these types of fees. Sometimes they are called "Rate buy down" points, or "Discount Fee." The short hand is just "points." Points aren't necessarily bad (make sure to subscribe to this blog for a full post on when to buy points). More often than not, if you put down 20% there are ZERO POINTS, ie $0 Loan Origination fees. So if you DO use the Cartus program, and an "approved" Realtor, make sure you go out of your way to max out the full 1% point. (ie if the lender was going to charge you no points, they can make up the fee and buy down your rate, as in make your 5% rate 4.75% approximately)

But here is the fine print as I understand it...

BOTTOM LINE: You only have to use their approved Realtor IF you need that Loan origination fee. In other words, you can still pick your favorite Realtor and get all the other fees covered for free by Cartus. (I could be wrong, but that is how I understand their rules above).

Why in God's world would you give up the ability to get a "free" 1% loan origination fee?

Well that is a separate and lengthy discussion on rebating and discounting. Heck, there are several companies that will give you a 1.5% cash rebate. Heck a 1.5% cash rebate is MUCH better than no cash reimbursement for a 1% fee you might not have purchased normally.

WAYS TO MILK CARTUS

1) Have them pay ALL your fees except the 1%, and find your own Realtor that will give you a rebate.

2) Or if you find a Realtor that is willing to be "approved" by Cartus, tell them "hey buddy, you are willing to give 40% to Cartus right? And Cartus will just turn around and refund 33% (1% or 1/3rd of the 3% offered to buyer's agents) of the 40% in the form of a 1% loan rebate, why not just give me the 40% directly?! Cut out Cartus and get 1.2% refunded on your HUD1 vs 1% lender fee repayment and Cartus pocketing the rest.

3) Get your own un-approved agent, skip the loan fee reimbursement, yet accept all the other fees. So why am I telling you the secret path to getting the most cash out of the relocation company and system? Well maybe, just maybe you will then believe me that #3 above might be the best solution for you in the end.

Stop and think about for a second. Cartus demands 40% from a Realtor that you pick or one that they pick. So for the ones that they pick, what kind of Realtors will accept that? Oftentimes desperate ones. Perhaps those that are kinda struggling. You know, economy is tough right now. Weekend warrior Realtors that have nothing better to do? One that will pressure you into a house and hope to get you off their slate as fast as possible so they can make the next 60% deal from Cartus. Perhaps they have to cut down half the time they spend on you, to make it worth it.

So signing with Cartus with an "Approved" Realtor, is not much different than Rebating. I have no problem with the rebating business model. (note: you won't find many other non-Rebating Realtors talk about it openly).

Why do I talk about it? Well as I like to say "I use to rebate, but then I got good." Yep Read: Realtor Rebates. Free Money or Expensive Savings? and more on rebating.

In the end, know you do have a choice. You can get the best of both worlds. You can get Cartus to pay a good amount of your closing costs, get a loan with NO loan origination fees, and get to pick an agent that is working for YOU, and not for Cartus.

Oh, and remember I'm not too busy for you, so email me. See I'm Not Too Busy For You video #1 and Video #2

Make sure to subscribe and comment and debate. Nobody likes a stale blog!

Written by Frank Borges LL0SA

Broker FranklyRealty.com

Owner FranklyMLS.com

Croc image DrBartje Fish image Phillip

ps. My experience was on the BUYING side. Can somebody comment on the SELLING side of relocating? Do they really buy the house at the appraised price and eat any subsequent loss? Now that seems to have some value in this market.

Renovated 3 Bedroom Home for Sale in Norfolk Virginia

Sat, 30 May 2009 13:20:30 -0500

CLICK TO VIEW LISTING WEBSITE

Description and Features

Welcome home to the updated and affordable ranch home in Oakdale Farms in Norfolk. The large, fenced corner lot offers wonderful outdoor loving space. Light, bright and open interior features all new carpet and fresh paint.

Bedrooms:	3
Bathrooms:	2
Parking Spaces:	3
Square Feet:	1300
Year Built:	1941
Floors:	1
MLS #:	0921544

Location

Click to view map: 609 Bancker Rd. Norfolk VA 23505

Links

10 Most Overlooked Items in Preparing a House for Sale

Sat, 30 May 2009 08:46:24 -0500

Selling your house? Getting ready to sell your house? Don't overlook these 10 things to pay attention to!

1. The windows. When you look out, you should see nothing but the other side. No dirt. No fogging. No cracks. No torn screens. This includes scrubbing the window sills and scraping off the paint left behind when they were re-painted a few years ago.

2. The blinds. Plastic mini-blinds have a tendency to get dusty and break easily. Don't mess with cleaning them - it's just not worth it. Go to Walmart and pick up new ones. If the blinds are broken, replace them. The buyers will be looking out the windows (see above) if they can't get to the windows because of broken blinds, they will get the impression the home is not maintained.

3. The fireplace. Clean it. It doesn't matter that you have never used it or that it is August. If it is wood-burning, no wood or ash residue should be left inside. If it is a gas log fireplace - get the cob webs out! Don't forget the screens and glass doors if you have them. Also, use an acid cleaner to get the ash and soot off of the fireplace hearth.

4. The baseboards. Get a bucket of warm water and Pinesol and wipe them down. They collect dust. Then, get yourself a cup of semi-gloss and a brush and either touch-up or re-paint them. Baseboards get abused by the vacuum cleaner and need to be touched up.

5. The grass. Mowing it is not enough. Edge it. A neat edge along the sidewalks and driveway gives the impression of a well-mainicured yard. Take out the Roundup and hit the grass and weeds growing up in the cracks in the driveway and sidewalks.

6. Under the lower kitchen cabinets. This is usually called a kickplate. It gets abused and usually needs painting, repair or replacement. This includes the kickplates on the refrigerator and dishwasher - those get downright nasty. Also, spiders love making cobwebs under the cabinets - make sure to get the vacuum in there.

7. The upper corners of the room. Dust and cobwebs are at home here. Make them homeless.

8. Ceiling fan blades. Turn off your fans and take a look at the blades. There's probably a layer of dust on them. Clean them. Well.

9. The light bulbs. Every light bulb in every light fixture on the property should be operable. Use the highewst wattage recommended for the fixture. Buyers love light. Burned out bulbs indicate a lack of maintenance.

10. The first 3 stairs on the staircase. In many houses, the stairs are the first thing you see when you open the door. The first 3 stairs trap a lot of dirt and the risers are usually pretty banged up. Clean these well and touch up the paint on the risers. In addition, make sure that bannister sparkles.

Happy Selling!

Tina in Virginia

Hurricane Preparedness Tax Holiday

Mon, 25 May 2009 15:13:14 -0500

From May 25th until May 31st 2009, several items will be exempt from sales tax throughout the Commonwealth of Virginia.

These items include those considered "hurricane preparedness items" such as: batteries, smoke detectors and first aid kits.

Here is the complete list:

• Portable generators and generator power cords
• Inverters and inverter power cables
• Artificial ice, blue ice, ice packs and reusable ice
• Batteries (excluding automobile or boat batteries)
o AAA, AA, C and D size
o 6- or 9-volt
o Cell phone batteries
• Any battery-powered light sources ,including
flashlights, lanterns and glow sticks -- no candles
• Tarpaulins, plastic sheeting, plastic drop cloths and
other flexible waterproof sheeting
• Bungee cords and rope
• Ground anchor systems or tie down kits
• Ratchet straps
• Duct tape
• Carbon monoxide detectors
• Smoke detectors
• Fire extinguishers
• Empty gas, propane or diesel fuel tanks or containers
• Water storage containers, including buckets, barrels,
canteen, cans, cooler
• Nonelectric food storage coolers
• Bottled water, any size and number of bottles,
including flavored, carbonated and vitamin water
• Manual can openers
• Battery-powered or hand-crank radios (including
radios with an electrical power option)
• Two-way radios
• Weather band radios and NOAA Weather Radios
• Storm shutter devices that are made, rated and
marketed specifically for the prevention of storm
damage to windows -- no plywood
• Cell phone chargers
• First aid kits

• Portable generators and generator power cords
• Inverters and inverter power cables

For more information on the Virginia Department of Taxation Hurricane Preparedness Sales Tax Holiday, please visit their site here.

Beautiful Great Neck Home in Virginia Beach, VA

Fri, 22 May 2009 16:26:09 -0500

CLICK TO VIEW LISTING WEBSITE

Description and Features

Welcome to this completely renovated home on a quiet culdesac in popular Laurel Cove. Lovingly cared for and well maintained, this home features quality upgrades throughout; including: 2nd floor laundry room, master suite with large bathroom and walk-in closet, new windows, upgraded electrical system, new roof and vents, new gutters, new vinyl siding, new A/C compressor, new flooring throughout, renovated eat-in kitchen, gas log fireplace, and much more! Great Neck Schools: John B. Dey Elementary, Great Neck Middle and Cox High. Neighborhood park is just around the corner.

Bedrooms:	4
Bathrooms:	2.5
Parking Spaces:	3
Square Feet:	2200
Lot Size:	13100
Year Built:	1971
Floors:	2
MLS #:	0921524

Location

Click to view map: 1305 Laurel Cove Circle Virginia Beach VA 23454

Links

Beautifully Renovated Home in Chesapeake Virginia

Sat, 16 May 2009 15:28:08 -0500

Updated and Affordable Home in Norfolk Virginia

Sat, 16 May 2009 15:21:52 -0500

Single Family Home Under $80,000 in Portsmouth Virginia

Sat, 16 May 2009 15:05:31 -0500

Classic Townhome in West Ghent in Norfolk

Sat, 16 May 2009 14:50:09 -0500

Beautiful and Affordable Home in Newport News Virginia

Sat, 16 May 2009 14:28:43 -0500

Beautiful and Affordable Home in Great Bridge Chesapeake Virginia

Sat, 16 May 2009 13:24:49 -0500

Home with In-law Suite in Virginia Beach

Sat, 16 May 2009 12:41:59 -0500

Beautifully Renovated Home in Norfolk Virginia

Sat, 16 May 2009 10:38:01 -0500

Beautiful Home in Chesapeake Virginia

Sat, 16 May 2009 07:57:48 -0500

Tina in Virginia - Hampton Roads Real Estate

5 Things Agents Need to Think About with Short Sales

Burton's Grill Charity Event for David Spisak!

What to Do When the Neighbor's House is an Eyesore???

FREE Virginia Beach Relocation Package!

SHOULD I PAY MY MORTGAGE?

RE Bar Camp Virginia Beach in less than 30 Days!

The 411 On The Event

How Many Brokerage CEO's Can You Name?

Renovated Cape Cod Home in Portsmouth Virginia

What to tell your clients when you're at REBarcamp

Why Not Wednesdays? FREE Concerts at Virginia Beach Towne Center

Put up a Sign....Get a $2500 Fine in Virginia

Approved by Cartus?= 40% Please

Renovated 3 Bedroom Home for Sale in Norfolk Virginia

10 Most Overlooked Items in Preparing a House for Sale

Hurricane Preparedness Tax Holiday

Beautiful Great Neck Home in Virginia Beach, VA

Beautifully Renovated Home in Chesapeake Virginia

Updated and Affordable Home in Norfolk Virginia

Single Family Home Under $80,000 in Portsmouth Virginia

Classic Townhome in West Ghent in Norfolk

Beautiful and Affordable Home in Newport News Virginia

Beautiful and Affordable Home in Great Bridge Chesapeake Virginia

Home with In-law Suite in Virginia Beach

Beautifully Renovated Home in Norfolk Virginia

Beautiful Home in Chesapeake Virginia