Cleveland Real Estate News » Real Estate

Can $75 Billion Help The Foreclosure Issue?

Carole Cohen — Thu, 19 Feb 2009 02:15:03 +0000

I guess it depends on how it is spent. One thing I like seems to be something The Ohio Assn. of Mortgage Brokers likes too. That is the provision that calls for Federal monies to be available to lenders so lenders can renegotiate loans with clients and give them better interest rates. That all sounds positive, and straightforward. Well, except the part about how some people are upside down on their mortgage (couldn’t sell for what they paid) and how this plan gets to the crux of that issue.

What I’m not sure I understand is the number of banks now calling for a moratorium. Not that I question the viability of a moratorium but what can a two or three week moratorium do? Is the goal to stop foreclosing on homes for three weeks while a new plan is put into place? I swear there is never enough info for me. Anyway, the latest bank to add to the short moratorium list is Charter One. PD article here.

If that isn’t fuzzy enough, you can read Bill Callahan on the moratorium issue because apparently the banks who claimed to be doing this last week still filed a significant number of them in Cuyahoga County. Does this mean ‘stopping’ is limited to declaring new foreclosures and not stopping them when they are already in progress?

Either I’m missing valuable info, or this makes no sense. If any of you can shed light, I’d love it.

Here is The White House website summarizing the Plan and if you scroll down there are other links that include things like executive summaries. Peace Out – 3C

The Old Adage of Taking What You Read in the Paper With a Grain of Salt Still Applies

Carole Cohen — Sun, 15 Feb 2009 17:03:42 +0000

I read the Teresa Dixon Murray article in yesterday’s PD and felt a bit of a rant coming on. After talking with two colleagues today it became clear that getting (as Paul Harvey used to say) the rest of the story out there is needed here. I’m talking about the article Theresa wrote about the current state of getting home loans. The title of the piece is the usual chicken little approach. But let’s take the ‘consumers face stricter standards for loans’ phrase in her title at face value. Since we got into a bit of a mess with everything from predatory lending to borrowers over extending themselves, does it not make sense that we all strive to change our ways? That automatically means stricter loan standards – or at least it means following a standard and not letting someone get a loan who should not have one. So why would this be a bad thing? It’s not.

She chicken littles the title but then goes on to say that a family she interviewed wondered if they could refinance and lo and behold they could. So no need to panic, it worked out.

Getting away from the article now, the point I want to make is this. You do not automatically have to put 20% down to get a loan in 2009. There are, for example, plenty of 3% FHA loans to be had. There are mortgage programs that offer a whole slew of possibilities. One of my colleagues heard from a National City lender talking about some of the programs available. We have programs available at Howard Hanna Mortgage Services, along with more than 120 million bucks to lend. Plenty of other lenders I have not mentioned here do too.

My last point is this. Stricter or more conscientious loan practices, however you want to describe them, are good for us and our economy. Second, there are home loans being made every week. I had a listing go under contract two weeks ago, and have two buyers with pre approval letters (and a few buyers in same category but have been with me longer) ready to find a home.

Teresa Dixon Murray makes one point that bears fleshing out. You can be afraid to find out if you qualify for a loan. You can be afraid to check with your lender to see if you qualify for a refinance. The truth is, once you make the calls you will feel much better. Knowing what your situation is and how to move ahead is the way to go on any financial matter.

If you qualify for a loan you can get one. As opposed to the years that got us into this mess when you may have gotten one even if you didn’t qualify. Which situation is better for our economy? So if you were tempted to just read the headline on that PD article yesterday, remember that grain of salt that says, is this the real story?

Rant over, Peace Out, Ohm…. 3C

The Trickle Down Effect, But Not In a Good Way: How One Lost Job Affected The Income of Many

Carole Cohen — Sat, 22 Nov 2008 20:22:26 +0000

My Denver real estate colleague Larry McGee wrote a very thoughtful and insightful post today that I wanted to share with my readers. We all know that when someone loses their jobs it affects more than just that one person. But this is from the perspective of housing. How it affected the sale, or lack thereof, of a home. You can read this wonderful article here on Active Rain.

Larry uses a phrase I had not seen before, when he talks about how we feel when we lose our jobs. He mentions that we lose not only our economic security but our ‘security of relevance.’ I think it’s a wonderful yet poignant phrase.

Peace Out – 3C

What is a Bill Murray Ground Hog Day Like in Cleveland For a Realtor®?

Carole Cohen — Sun, 19 Oct 2008 13:53:02 +0000

The real estate planets were aligned today. Two sets of clients with the same available date to see Downtown condos, and exactly the same price range. So I played Bill Murray in Ground Hog Day Cleveland style and took one set of clients to see these condos and then turned around and did it all again! It’s one way to conserve car fuel, yes? (Me, not them!) Okay, in reality, no two showings were alike. I got to see each of the units through four different perspectives. And that is one of the reasons why I love my job.

Did you know there are condo complexes Downtown with units available between $79k and $99,999? Did you know you can get a 2 bedroom 2 bath condo Downtown for less than $120k? Today’s trek took us to The Grand Arcade, Pointe at Gateway and Water Street. All three complexes have two spectacular things to offer:

1. Location. ‘Close enough to spit at’ for transportation. All three are within a ten minute walk (probably less) of Public Square and the RTA. From Pointe at Gateway you will need exactly two minutes to walk to East Fourth Street and all the activity there. Not to mention The Gund. The Grand Arcade and Water Street both sit in the heart of restaurant and club activity, including but not limited to The Warehouse District.

2. Affordability. It’s been a while since I’ve used my mantra of ‘please build condominiums below the $300k price point, Mr. Developer.’ I’m sure I will again, but as you can see, paying $79,900, $95,500, $119,000 with reasonable maintenance fees makes these three buildings a great alternative to renting. Or a great alternative to paying more. You save on your mortgage per month, you probably save on stress because it’s fun to live Downtown, and you can get more work done (or sleep!) while you ride to work on RTA instead of driving. Just saying!

I always love being Downtown and today was no exception. There were people everywhere and cars parked all the way to East 9th Street. There were boats in Lake Erie. People watching college football games at The Lizard (this was pointed out to me by one of my clients). And this all occurred before the normal Saturday evening bewitching hour (way before).

I don’t know how it is in other cities, but when you show condos in Cleveland, people who already live there are curious but friendly. And eager to talk when I ask (and I always do) ‘how do you like living here?’ We had positive responses from residents in these buildings. One told us how he and his wife live in Youngstown but spend weekends in their Downtown condo. They hope to eventually spend Summers in Cleveland and then somewhere warmer in the Winter. (Best of both worlds!) All three buildings are doggie friendly (okay, cats too lol)

I have only one comment about condominium floor plans. So developers, listen up! Even if you are designing one bedroom condominiums, unless they are efficiencies, can you figure out a way to put the one bathroom somewhere else besides the interior wall of the bedroom? My second set of clients were not happy with this today and we saw a few with this ’not guest friendly’ lay out. I know it can be done. This is not the first time it’s come up. Well it makes sense to have suggestions after a hard day’s work, no? Have you ever looked at a town house or condominium and felt the entire complex was ruled out for you because of an issue like this? My clients haven’t ruled it out, but it certainly is an objection they have to think about. Maybe a NE Ohio developer will be surfing the net and see this article. You never know! Peace Out - 3C

(I wrote this when I got home yesterday evening but there was a baseball game on! That’s why it’s posting today)

Property Disclosures Required and Helpful To Your Home Purchase Decisions

Carole Cohen — Sun, 13 Apr 2008 16:06:38 +0000

Working with eight different buyers over the course of the last month is certainly helping me stay organized and out of trouble. I’ve spent some time contemplating (when I HAVE time!) about what I am learning and what is important in this process. One of the most useful things buyers can get is a copy of the State of Ohio Property Disclosures for the homes they are viewing.

Home owners are required to fill out the forms based on information that covers the past five years of knowledge they have on the home. Questions revolve around the status of the roofs, basements, structure. Water intrusion is a big issue surrounding many of the questions, whether it’s leaking roofs or water in the basement. The Cincinnati Board of Realtors® has a good one page explanation of these property disclosures.

These disclosures have been required by law since the 90s and for good reason. Ohio is an ‘As Is’ purchase state. That means you as a buyer are required to do your due diligence (homework) about the house before you buy it. As a part of this I ask all my buyers to do a home inspection. And if I can’t talk you into it I make you sign a waiver because I really think you should do it! It’s a few hundred dollars well spent. On the other side, sellers are asked to be transparent (honest, just like us bloggers) and disclose any issues that might have arisen or still exist.

Did you have a roof leak within the past five years? If you did and then had your roof replaced last year, then you disclose that on your forms. If you did not replace the roof yet, then say it’s still leaking. Why is this important over and above the honesty issue? Can you say lawsuits? You want to avoid being sued, I’m sure you do! As a matter of fact, here is another explanation of the law from lawyers.com. Thought you might want to see the forms so here is a copy of the 2004 version of the disclosures. Just about every year the forms get updated. If I have a seller listing their home with me, oh say in October of one year and a new version of the form comes out in January (and the home is still on the market), they fill out new forms so they are current with the law.

By law, a Realtor® or broker is not allowed to help you fill out this form in any way. So it’s worth it to take some time and answer the questions carefully.

What if you inherit a home after your parents pass away? Maybe you have not lived in the property for the last five years. You are required to fill out the form and state that you are unaware of issues (if you really ARE unaware) that exist in the home because you now own it but do not reside there.

I can tell you that on two occasions this month I have had buyers pass on writing an offer on homes they loved because there was a difference between what the disclosures said and what existed in the home. This made them uncomfortable about moving forward. They felt there might be other issues they were not aware of. That is another reason to be really honest in your assessment of the questions on the form. When someone writes an offer on your home, the purchase offer will have questions asking them if they have seen the disclosures (received a copy of them). Here again is a copy of the 2004 Residential Property Disclosures – in case you missed the link above. Your Realtor® can get you the most recent version when you are ready to put your home on the market. Peace Out – 3C

Dogs Welcome At Work

Carole — Thu, 01 Mar 2007 00:26:00 +0000

We are just not a stuffy real estate office. I am not sure I could work somewhere stuffy. One of the nicest things people do is bring their dogs for a visit. This is Manager Mark with his dog Pepper, who is a sweetheart. And very well behaved I might add. And dog visits are not just limited to colleagues. We have a few business owner neighbors and past clients who know we want them to stop in, when they are on the street with their pups. They say pets add years to your life. Since I don’t have a pet at the moment, I consider dog friends like Pepper my ‘rent a dogs.’ So if you are in the neighborhood of the West Side Market with your pup, stop in, we will enjoy the visit — and your pup might enjoy the dog treats. Peace Out – 3C