Jun

2

Neighbors kick family out of home

NEW PORT RICHEY, Fla. – June 2, 2008 – Tired of the nagging letters from your neighborhood homeowners association, the threats of liens on your home?

Before you ignore the association, consider the fate of Gregory Green.

More than three years ago, Green’s body seemed to be falling apart. Overweight, he suffered two blood clots in his lung, then he needed surgery for a back injury, then he was diagnosed with diabetes. On his doctor’s advice, he left his job at an Alzheimer’s care center in Tampa and began collecting disability benefits, which were about half his previous salary and put a strain on his family’s finances, Green says.

By 2005, the family of five had fallen behind on dues to the homeowners association of The Glen at River Ridge, which represents about 150 homes in a west Pasco County subdivision. The result: In September, the homeowners association foreclosed on the house for owing $580.

“These are neighbors,” Green said of the board of directors of the homeowners association. “Neighbors are supposed to be compassionate.”

The Greens’ story isn’t the norm for association disputes, but foreclosures that end with the sale of a debtor’s home have become surprisingly common in the Bay area and throughout Florida, according to two lawyers who represent hundreds of homeowners and condo associations between them, Bob Tankel of Dunedin and Ron Cotterill of Tampa. Tankel estimates such cases have increased tenfold in the past four years, based on his firm’s caseload.

In many situations, homeowners are losing their properties over a few hundred dollars in delinquent homeowners assessments.

What’s more, Tankel said he’s advising his homeowners association clients to foreclose quickly, before the lender does. A homeowners association lien is inferior to a claim brought by a lender holding the mortgage, Tankel said. So if a bank files first, the association may not be able to collect the back dues.

“We’re always in a race to the courthouse steps,” Tankel said.

Foreclosing on someone’s home may sound ruthless – Tankel prefers “aggressive” – but lawyers who represent homeowners associations insist the organizations are victims of the foreclosure mess in Florida.

Across the state, a record number of mortgage foreclosures have left many deed-restricted neighborhoods dotted with vacant homes. For financially distressed homeowners who still own their homes, paying association dues is often a low priority, Tankel said. Tankel, who said he represents as many as 600 homeowners and condo associations in Florida, has watched his collections business increase by 500 percent over the past four years.

Homeowners associations must provide drainage or landscaping in their communities as less money comes in. Homeowners who pay often face special assessments to make up for those who fail to pay, Tankel said.

Foreclosure lawyers are unsympathetic figures for many people, and Tankel jokes that he’s occasionally thought of as Snidely Whiplash, the mustachioed, top-hatted villain in the old “Dudley Do-Right” cartoons.

“Am I ruthless, or am I protecting the interests of people who pay?” asked Tankel.

Most owe relatively little

It’s unclear how often associations force homes to be auctioned at the courthouse because local court clerks don’t differentiate between foreclosure sales brought by homeowners associations and those brought by lenders.

Anecdotal evidence suggests that the number is relatively small, and most lawsuits brought by associations settle before reaching a sale at the courthouse. Nonetheless, the number has grown exponentially. A few years ago, perhaps one in every 3,000 association collection actions resulted in the sale of the person’s house. Today, Tankel estimates the rate is one per 300 cases. Recently, he’s been overseeing about three such foreclosure sales per month.

Cotterill estimated he’s shepherding three to 10 cases per month to foreclosure sales.

“For lack of a better word, the increase has been dramatic over time,” Cotterill said. “I don’t know if it’s reached its peak yet.”

Aside from The Glen at River Ridge homeowners association, others that have foreclosed on homes recently include: Westchase Community Association, which recently foreclosed on at least two homes, according to court records; FishHawk Ranch Homeowners Association; Hyde Park Place II Condominium Association in Tampa; and Charleston Corners Property Owners Association in Lutz.

Both Tankel and Cotterill say they are stumped about why so many people are willing to surrender their homes for so little in delinquent dues. Tankel said the typical association foreclosure case involves less than $1,000 in delinquent homeowners assessments.

Some of the debtors are investors who have little equity in the homes and are willing to walk away from a bad investment, Cotterill said. However, in some cases, such as the Greens’, the delinquent homeowners are living in the homes. Cotterill said people don’t realize that homeowners associations have the power to foreclose, so they ignore warning letters.

Florida law grants four entities the power to foreclose: mortgage holders, such as banks and the investment companies that purchase packages of loans; the IRS; contractors who can foreclose on construction liens; and homeowners associations.

If homeowners associations decide to foreclose, time is critical, Tankel said. They need to seek foreclosure quickly before the value of the homes falls further and before banks foreclose, he said.

“Because of the real estate crisis, I have suggested that clients not give homeowners so much time and so many letters,” Tankel said.

Playing hardball

Those kinds of hardball tactics have raised critics of homeowners associations and the lawyers they employ.

Jan Bergemann runs a DeLand-based watchdog group called Cyber Citizens for Justice, which is pushing for reform of Florida’s homeowners association laws. Among his demands is that associations provide more notice to homeowners of the potential filing of a lien, without accruing attorney fees billable to the homeowner.

Bergemann faults many lawyers for taking the side of homeowners and condo association boards, rather than considering the interest of all of the association’s members, including delinquent homeowners.

Often, the legal fees – especially in a foreclosure case – far exceed the association dues owed, he said. Several foreclosure cases the Tribune reviewed involved legal fees billed at a rate of $200 or more per hour, as well as paralegal fees of $95 an hour.

Foreclosure “causes hardship,” Bergemann said. “It causes problems, and if a family has a problem paying $250 or whatever’s at stake, they definitely have a problem when Tankel adds $800” in legal fees.

In New Port Richey, the Greens fell behind in their association dues and were quickly swamped by mounting court costs and attorney fees. The family consists of Gregory, 50, his wife, Patricia, 55, a 16-year-old daughter, Cherylin, and two adult sons, Jason and Aaron.

After notifying the family of the delinquency, the homeowners association board placed a lien on the house for $264 in November 2006, court records show. Their debt eventually grew to $580 in back dues.

Patricia Green said her homeowners association’s board and its president, Jack Alwood, refused to negotiate with the family.

“They wouldn’t take payments,” she said. “They wouldn’t work with us. They wanted a lump sum.”

The association’s attorney, Michael Brudny of Oldsmar, also would not return the family’s calls seeking to work out a payment plan, the Greens said.

“They’d (Brudny’s office) take messages and messages and nobody would ever call back,” Gregory Green said.

Brudny wouldn’t comment specifically on the Greens’ case, preferring to speak generally about homeowners association foreclosures. However, he denied that his office failed to return the Greens’ calls, and said his office wants to work out things with delinquent homeowners. Unfortunately, in the Greens’ case, they were unable to make payments, he said.

In April 2007, The Glen at River Ridge association filed a foreclosure lawsuit against the family in Pasco County court. The case resulted in a summary judgment against the Greens in August for a total of $3,781. Only $580 was for the back dues the family owed. An additional $2,134 was for attorney fees and $605 was for court costs, among other charges.

Absent a quick payoff of the amount owed, the court set a foreclosure sale for Sept. 26. That day, the association purchased the home at the courthouse for $100, a typical low offer for a home with only one bidder and little or no equity beyond what’s owed to the mortgage company. The Greens moved to a rental home four miles away.

Alwood, the association president, said the Greens’ case was unfortunate, but the family consistently failed to pay their homeowners dues over three years. The family didn’t respond to the association’s letters, Alwood said.

“They just stonewalled; Gregory Green just would not respond,” he said.

Eventually, the homeowners association tried to sell the property but was unable to. The association board decided against making the mortgage payments and the lender took back the home.

Today, Patricia Green notes the irony of the situation: The association foreclosed on her property to remove the Greens, get their delinquent dues and fill the home with someone who would pay the association’s dues on time.

“Now the home is sitting empty,” she said.

5 steps to a foreclosure over homeowners group fees

An old wives’ tale holds that homeowners dues in arrears don’t need to be paid until the home is sold, at which time the new owner must pay off the debt, said Ron Cotterill, a homeowners association lawyer in Tampa. In reality, associations have the power to foreclose on liens and force the sale of a home.

Florida law lays out a process for starting a foreclosure action:

1. Provide notice of delinquent dues. An association must give a homeowner written notice for past-due assessments and any other amounts owed, and provide the owner with 45 days to make the payment. The association must send the letter by certified or registered mail as well as by first-class U.S. mail.

2. File a lien.

3. Provide notice of intent to foreclose. Again, the association must provide the homeowner with 45 days notice of its intent to foreclose on unpaid dues.

4. Start foreclosure proceedings.

5. Cause a foreclosure sale.

If the association receives a foreclosure judgment against a homeowner, and the owner fails to pay off all money owed, the association can have the home sold at the courthouse. In some cases, the homeowners association buys the home if there are no other bidders.

In recent years, associations have been prohibited from converting fines for such slights as failing to maintain the lawn into liens that can be foreclosed upon. However, legislation passed this year may change that somewhat. Peter Dunbar, a real estate and association law attorney in Tallahassee, said that in the future if the fine exceeds $1,000, the homeowners association may be able to file a lien, which is foreclosable. The legislation has not been signed by the governor, said David Muller, a community association lawyer for the Becker & Poliakoff firm.

Copyright © 2008 Tampa Tribune, Fla., Michael Sasso. Distributed by McClatchy-Tribune Information Services.

May

28

Forget preconceived notions of the wealthy as inheritors of family money. Rather, a recent survey of 683 USA and International agents reveals that the typical buyer of multimillion-dollar homes is a self-made millionaire with “new money.”

“Successful business owners, self-employed professionals, and highly paid corporate executives are fueling the boom in new money households. Despite what many think, new money dominates” compared with inherited wealth, says Laurie Moore-Moore, founder of the Institute for Luxury Home Marketing.

The top professions of luxury consumers include the following, according to the survey:

Business or corporate executive: 88 percent
Physician: 37 percent
Lawyer: 31 percent
Financial professional: 30 percent
Entertainer, entertainment executive, or professional athlete: 14 percent

A typical down payment for luxury consumers is 20 percent to 30 percent, or about $400,000 to $600,000 on a $2 million home, according to survey respondents. Additionally, a quarter of clients put down as much as 30 percent to 50 percent of the sale price, the survey found.

Affluent Clients Want to Be Discreet

Practitioners serving affluent clientele are expected to provide a high level of personalized service to both buyers and sellers, according to the survey.

The No. 1 special need that extremely affluent clients require, according to 78 percent of survey respondents, is privacy and confidentiality. “The ability to be discreet” was also identified as a top criteria for selecting a real estate professional in research done by Unique Homes magazine and The Institute for Luxury Home Marketing.

“Wealthy consumers want to know their agent isn’t discussing their transaction over cocktails,” Moore-Moore says.

Other necessary skills for real estate professionals working with luxury consumers, according to survey:

Customized service: 69 percent
Ability to work well with executive assistants, CPAs, and attorneys: 44 percent
Inside scoop on the market: 36 percent
Ability to provide emotional support: 17 percent
Personal rapport with clients: 11 percent.

Must-Have Amenities

When asked about “must have” amenities that buyers require in their luxury homes, 60 percent of respondents answered that their customers want media rooms and 60 percent said their customers want “wired” homes.

On the flip side, the sales associates polled said that their clientele believe that gourmet kitchens, granite countertops, and wet bars are no longer considered luxuries.

— By Camilla McLaughlin for REALTOR® Magazine Online

Mar

2

U.S. home prices fell 0.7 percent in the fourth quarter, according to Standard & Poor’s inaugural release of the national Case-Shiller price index.

This is the fastest rate home prices have fallen since 1992. Overall home prices rose only 0.4 percent last year.

On an inflation-adjusted basis, national home prices are down 1.6 percent in the past year. Prices in the top 10 metro areas are down 2 percent.

Among the 20 cities included in the index, the biggest gains in the past year were in Seattle (up 12.1 percent), Portland (up 9.9 percent) and Charlotte (up 6.7 percent). The biggest losses in the past year were recorded in Detroit (down 5.9 percent), Boston (down 5.1 percent) and San Diego (down 4.2 percent).

Source: Dow Jones Business News (02/27/07)

Feb

16

Business 2.0 magazine ranks the top 10 cities for buying property now. Experts say that while these locales may not be immune to the current housing malaise, eventually property values in these places, for a variety of reasons, are likely to zoom.

Here’s the list, along with the projected gain in home prices:

1. Panama City, Fla.: 72 percent projected gain in home prices over five years. A new airport that will be built next year will open the area to vacationers and residents.

2. Vero Beach, Fla.: 64 percent. Demand for housing along with moderate property taxes and beautiful weather will drive growth.

3. Bridgeport, Conn.: 63 percent. Proximity and the staggering home prices in other parts of Fairfield County are making this hardscrabble area appealing to New York City commuters.

4. Lakeland, Fla.: 59 percent. This growing area is only 30 minutes from Tampa via Interstate 4, but prices are 80 percent lower.

5. McAllen, Texas: 57 percent. A Hispanic baby boom and rising incomes are driving demand for bigger homes.

6. San Luis Obispo, Calif.: 40 percent. Compared to southern California, the prices here are low and the developing wine industry adds to the appeal.

7. Wilmington, N.C.: 37 percent. With great golf, mild weather, and its proximity to water, this area is a great retirement community.

8. Manchester, N.H.: 35 percent. This city was the winner of Money Magazine’s best place to live in America. It’s within commuting distance of Boston, but home prices are a fraction, and there’s no income or sales tax.

9. Fort Collins, Colo.: 28 percent. This winner of many best lists has great schools, low crime, and good jobs — plus 40 parks within the city limits.

10. Atlanta, Ga.: 24 percent. Commuting is a bear here and many newcomers to the area are driving up prices in close-in suburbs as the area’s overall economic fortunes continue to rise.

Source: Business 2.0 (03/01/07)

Feb

15

By: Allen Butler
February 14th, 2007

Seller’s Price Perceptions Cause National Uproar

In  today’s real estate market, the refrain from Realtors is the same: “These sellers are living in La La Land (or Neverland). Everyone is thinking their home is worth much more than it is. We can’t get them to see the truth!” Alas, the “truth” is that this is an age-old problem that is not necessarily intrinsic to any particular market, but may be a little worse than normal in 2006-07. The history books are replete with examples dating as far back as the paleolithic period of neanderthal men and women chasing Realtors from their caves with raised clubs over a price dispute.  This euphoric optimism of the common home seller has been studied by the American Medical Dissociation, and it has coined a neologism: Schitzo Prospectus Actualis Capitalis. (Editor’s Note:  a break with reality concerning the expectation of material gain.)

     The acronym, SPAC (pronounced “Space”), has entered modern parlance to speak of sellers with the disease. “Spacers,” as these unfortunates have become known, appear to be causing Realtors  apoplectic frustration.  But what is this disease, and how has it reached epic proportions?

One of the contributing factors of the disease appears to be neighborhood gossip. It is not uncommon for homeowners in a given community to keep each other apprised of the going rate for homes through the neighborhood grapevine. Our reporter asked a local homeowner to give her opinion of her home’s value:

 WUSA Reporter: “What do you think your home is worth today, Mrs. Bon-Mot?

Mrs. Bon-Mot: “Well,  the Pastiche’s place down on Maple Drive is very similar to ours, and his sold about a month ago for $525,000. It took him a couple of months to sell, the market being what it is, but it did sell.  Now, our home has Teflon wallpaper, which his didn’t. Also, we have an above-ground pool that the kids just love. Oh, we also got a new air conditioner about, oh. . .ten years ago? Yeah. All these things add up! So, I would expect that we could get about $550,000, maybe $560,000.

Our intrepid reporter, after researching county records and the local MLS data, found the truth about the Pastiche’s sale:

1.  The Pastiche’s home was 1357 square feet bigger that the Bon-Mot’s.

2.  The Pastiche’s home was on the market with 4 different Realtors for a total of 296 days.

3.  The Pastiche’s home was originally listed for $495,000, and eventually sold for $421,000.

4.  According to MLS data, the Pastiche’s home had been extensively remodeled in 2002  including new floors, paint, pebble-tech play pool, and a new kitchen.

 So, how does this information get passed along and corrupted? According to local specialist Johnson Smack of Swindle & Crouch Realty, homeowners hear what they want to hear: “It’s an ongoing problem. So and so tells so and so, and the story gets twisted until the guy down the street who sold a year ago had a dilapidated hut that sold for way more than it should have. We see it all the time. These ‘Spacers’ really need to get with reality.” How does Mr. Smack deal with these idiosyncrasies?

“I just show them the comps,” says Smack, “and let them see the truth. That guy down the road from you had a nicer house, and it didn’t sell for as much as you think it did.”

However, this revelation can sometimes lead to volatility, as our erstwhile reporter discovered. When revealing our own research concerning the sale of the Pastiche’s property to Mrs. Bon-Mot, she at first demurred. “No, that’s not right. Maybe you’ve got the wrong home.  The Pastiche’s didn’t have all that stuff,” she said. When confronted with pictures of Mr. & Mrs. Pastiche holding a sold sign in their front yard that our reporters found posted on their former Realtor’s Website, Mrs. Bon-Mot became indignant and semi-politely asked our reporter to leave.

SPAC disease is challenging medical researchers across the US to find a cure that will enable the sluggish economy to regain its footing in the coming years.  The housing sector is a major driver of the aggregate economy, and while home seller’s suffer from SPAC, things look grim.  Biological chemists, psychologists, and even holistic specialists have been facing the challenge head on. “We have begun looking at different forms of hallucinogenic drugs to combat the problem,” says Dr. Mustapha Obslooke, a spokesman for I.G. Farben, “The initial trials have been giving our people an optomistic outlook. We expect that, after FDA testing this fall, we will be able to get help where it is needed most.”

According to department staff at the University of Tulsa’s Jung Research Center, electo-shock therapy and traditional prefrontal lobotomy do not seem to be the answer. One student researcher, on condition of anonymity, reported that “sellers just do not respond to this approach. After we get them cleaned up and wipe the saliva from their faces, their responses to our inquiries is just not adequate to suggest a significant change.” Researchers are now involved in removing parts of the hypocampus of sellers in an effort to combat the disease. The first trials of this new procedure have proven inconclusive, but there are reports of unexpected side benefits, notably an ease of irritable bowel syndrome.

 Holistic specialists have had limited results in their treatments. According to Radiant Moonbeam, an independent practitioner of holistic medicine, her patients are having some success. “We really had hoped for better results, “she says, “but, until now, our healing herbs, along with a regiment of progressive muscle relaxation and sunshine colon-cleanse (patent pending) have only gotten a few thousand dollars relief.”

Specialists are still working on the problem, and may have new reports out this summer. Until then, the disease will have to run its course. There is some hope among researchers that the body’s own immune system will begin to fight back, giving new hope to the US homeowner, economist, and Realtor. We’ll keep you posted.

reprinted by permission of The Daily Bender

Jan

29

Unique Homes Magazine in its January issue lists what it expects to be the top 25 luxury markets in 2007. Collectively, the communities that made it on the list represent where the market is heading, according to the magazine.

Here are the Top 10 and the factors that make them standout as leaders of the pack:

1. Annapolis, Md.: Great boating and affordable prices compared to Washington, D.C., or Baltimore, both of which are a reasonable commute from Annapolis, too.
2. Asheville, N.C.: Eclectic ambiance draws the upscale to an outdoorsy, low-key lifestyle.
3. Aspen, Colo.: Four-season appeal, which is kept exclusive by restrictive zoning that restrains supply.
4. Atlanta, Ga.: A big-city appeal with lots of lifestyle amenities and new upscale communities.
5. Austin, Texas: Posting record gains for most of 2006, a mix of newcomers are drawn to its great music and scenery and the cosmopolitan University of Texas.
6. Bellevue/Medina, Wash.: This city has lots of upscale neighborhoods that aren’t as pricey as other northwest areas.
7. Beverly Hills, Calif.: Its reputation as a Mecca for luxury remains untarnished.
8. Idaho: The state is a luxury newcomer with growing resort markets, such as Coeur d’Alene, McCall, and Sandpoint.
9. Jupiter, Fla.: Tiger Woods started a trend here when he purchased a 10-acre estate for $38 million.
10. Manhattan: Wall Streeters flush with 2006 bonuses are snapping up desirable co-ops and town houses.

Source: Unique Homes, Camilla McLaughlin (January 2007)

Jan

19

The FBI reports that mortgage fraud continued to increase in 2006, despite increased scrutiny from both law enforcement agencies and the financial sector. Earlier this month, the bureau had a total of 938 pending mortgage-fraud investigations versus 818 at the end of last year’s third quarter.

Most of the cases involve “fraud for profit” scams, which entail crooks buying a house from a legitimate seller — often using a stolen identity — then selling the property to individuals posing as buyers after a corrupt appraiser has assigned an artificially high value. After securing a mortgage at the inflated value, the buyers then split the inflated proceeds from the fraudulent loan with the sellers.

“We recognize it’s a growing problem, so we’ve redoubled our efforts to work with the industry and other law enforcement agencies to address it,” says William Stern, an FBI mortgage fraud coordinator. “We’re seeing it spill over to things like organized crime and gangs, which concerns us, too.”

Source: Detroit News, Bob Tedeschi (01/16/07)

© Copyright 2006 Information Inc.

Jan

4

It seems evident from recent historical facts and statistics that waterfront properties on the chains are still one of the safest-and best residental property investments anyone can make. In order, the chains (of lakes) are by far the best investments. Next, it is clear that any substantial lake or body of water that permits boating (commonly called deep water boating-which means simply “motor powered”) are the next best investments. Waterfront property on lakes that do not permint boating or skiing add far less value to a property. Simply, it then is really nothing more than “view value” if any. Homes on very small lakes that don’t permit motorized boating/skiing or homes located on “ponds” don’t add substantially to a properties value.

Rick Brunsman


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