enjoy.
Herm.
Herm.
Tuesday, December 30, 2008
Tuesday, November 11, 2008
How Cute are They
The new First Family:
CHICAGO - NOVEMBER 04:
U.S. President elect Barack Obama walks on stage, with his wife Michelle (R) and daughters Malia (2nd R) and Sasha to, address his supports during an election night gathering in Grant Park on November 4, 2008 in Chicago, Illinois. Obama defeated Republican nominee Sen. John McCain (R-AZ) by a wide margin in the election to become the first African-American U.S. President elect.
(Photo by Scott Olson/Getty Images) 12:13 a.m. ET, 11/5/08
Our new President Elect and Vice President Elect
Barack Obama elected 44th president and Joe Biden as Vice President
Tuesday, November 4, 2008
Make sure to VOTE TODAY
If you have not already, I do via absentee every time; please make sure to vote today. Each and every vote does count. This is my dad’s 2nd time being a poll worker and he loves it.
The national presidential race is historic regardless of its outcome.
Be a part of history. Relevant to your everyday life though, your local elections and measures will have a more telling and longer lasting affect on your life, day to day. Make sure to vote on at least one other item other than the presidential candidates so that you can have a say or debate on anything.
Get out and vote.
Herm.
Your Home is Where Your Heart Is, .......it is also Your Castle.Hermia (949) 742-0915
visit my new blog at http://acastle4u.blogspot.com/
Building Real Estate Kingdoms
So you can retire in 7 years or less
Monday, October 6, 2008
"HOPE FOR HOMEOWNERS" PROGRAM TO HELP MORE STRUGGLING FAMILIES KEEP THEIR HOMES
HUD No. 08-150Lemar Wooley(202) 708-0685www.hud.gov/news/
For ReleaseWednesdayOctober 1, 2008
BUSH ADMINISTRATION LAUNCHES "HOPE FOR HOMEOWNERS" PROGRAM TO HELP MORE STRUGGLING FAMILIES KEEP THEIR HOMES Detailed Program Eligibility Requirements Announced
WASHINGTON - The Bush Administration today unveiled additional mortgage assistance for homeowners at risk of foreclosure. The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).
"For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford," said HUD Secretary Steve Preston. "FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners' ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them."
The HOPE for Homeowners program was authorized by the Economic and Housing Recovery Act of 2008. Since the President signed this vital legislation into law on July 30, 2008, the HOPE for Homeowners Board of Directors has worked diligently to develop and implement the program as directed by Congress. The Board was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.
The HOPE for Homeowners program begins today and ends September 30, 2011. The program is available only to owner occupants and will offer 30-year fixed rate mortgages - so the borrower's last payment will be the same as the first payment. In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.
Borrower Eligibility
Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:
The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.
They are not able to pay their existing mortgage without help.
As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).
How the HOPE for Homeowners program works
"HOPE for Homeowners will add to HUD's existing efforts to make FHA refinancing available to homeowners who need it most," said FHA Commissioner Brian D. Montgomery. "One year ago, FHA expanded refinancing into its FHASecure program. Since that time, we have helped more than 360,000 families keep their homes by refinancing with FHA, and we will assist a total of 500,000 families by the end of this year."
The Board expects that the primary way homeowners will participate in the program is by working with their current lender. HOPE for Homeowners will serve as another loss mitigation tool available to distressed borrowers.
HOPE for Homeowners also includes the following provisions:
The loan amount may not exceed a maximum of $550,440.
The new mortgage will be no more than 90 percent of the new appraised value including any financed Upfront Mortgage Insurance Premium.
The Upfront Mortgage Insurance Premium is 3 percent and the Annual Mortgage Insurance Premium is 1.5 percent.
The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.
Existing subordinate lenders must release their outstanding mortgage liens.
Standard FHA policy regarding closing costs applies, and they may be:
Financed into the new loan provided the value of the mortgage (including the Upfront Mortgage Insurance Premium) does not exceed 90 percent of the new appraised value of the home.
Paid from the borrowers' own assets.
Paid by the servicing lender or third party (e.g., federal, state, or local program).
Paid by the originating lender through premium pricing.
The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
The lender will disclose to the homeowner the benefits of the program including home retention, a new affordable mortgage based on the current appraised value, and 10 percent equity. The lender will also explain the prohibition against new junior liens against the property unless directly related to property maintenance, and a minimum of 50 percent equity and appreciation sharing with the Federal government.
The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD's appreciation share.
If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years. The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation. This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA.
The HOPE for Homeowners Board of Directors includes HUD Secretary Steve Preston, Treasury Secretary Henry Paulson, Federal Reserve Board Chairman Ben Bernanke, and FDIC Chairman Sheila Bair. They have named the following people to serve on the board as their designees: FHA Commissioner and Chairman of the Board Brian Montgomery, Federal Reserve Board Governor Elizabeth Duke, Treasury Assistant Secretary for Economic Policy Phillip Swagel, and Federal Deposit Insurance Corporation Director Tom Curry.
Read more about HOPE for Homeowners at http://www.hud.gov/hopeforhomeowners/.
Watch Secretary Preston's press conference
Without captions
With captions
###
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at http://www.hud.gov/ and espanol.hud.gov.
Back to Top
FOIA
Privacy
Web Policies and Important Links
Home
U.S. Department of Housing and Urban Development451 7th Street S.W., Washington, DC 20410Telephone: (202) 708-1112 TTY: (202) 708-1455Find the address of a HUD office near you
For ReleaseWednesdayOctober 1, 2008
BUSH ADMINISTRATION LAUNCHES "HOPE FOR HOMEOWNERS" PROGRAM TO HELP MORE STRUGGLING FAMILIES KEEP THEIR HOMES Detailed Program Eligibility Requirements Announced
WASHINGTON - The Bush Administration today unveiled additional mortgage assistance for homeowners at risk of foreclosure. The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).
"For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford," said HUD Secretary Steve Preston. "FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners' ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them."
The HOPE for Homeowners program was authorized by the Economic and Housing Recovery Act of 2008. Since the President signed this vital legislation into law on July 30, 2008, the HOPE for Homeowners Board of Directors has worked diligently to develop and implement the program as directed by Congress. The Board was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.
The HOPE for Homeowners program begins today and ends September 30, 2011. The program is available only to owner occupants and will offer 30-year fixed rate mortgages - so the borrower's last payment will be the same as the first payment. In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.
Borrower Eligibility
Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:
The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.
They are not able to pay their existing mortgage without help.
As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).
How the HOPE for Homeowners program works
"HOPE for Homeowners will add to HUD's existing efforts to make FHA refinancing available to homeowners who need it most," said FHA Commissioner Brian D. Montgomery. "One year ago, FHA expanded refinancing into its FHASecure program. Since that time, we have helped more than 360,000 families keep their homes by refinancing with FHA, and we will assist a total of 500,000 families by the end of this year."
The Board expects that the primary way homeowners will participate in the program is by working with their current lender. HOPE for Homeowners will serve as another loss mitigation tool available to distressed borrowers.
HOPE for Homeowners also includes the following provisions:
The loan amount may not exceed a maximum of $550,440.
The new mortgage will be no more than 90 percent of the new appraised value including any financed Upfront Mortgage Insurance Premium.
The Upfront Mortgage Insurance Premium is 3 percent and the Annual Mortgage Insurance Premium is 1.5 percent.
The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.
The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.
Existing subordinate lenders must release their outstanding mortgage liens.
Standard FHA policy regarding closing costs applies, and they may be:
Financed into the new loan provided the value of the mortgage (including the Upfront Mortgage Insurance Premium) does not exceed 90 percent of the new appraised value of the home.
Paid from the borrowers' own assets.
Paid by the servicing lender or third party (e.g., federal, state, or local program).
Paid by the originating lender through premium pricing.
The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
The lender will disclose to the homeowner the benefits of the program including home retention, a new affordable mortgage based on the current appraised value, and 10 percent equity. The lender will also explain the prohibition against new junior liens against the property unless directly related to property maintenance, and a minimum of 50 percent equity and appreciation sharing with the Federal government.
The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD's appreciation share.
If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years. The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation. This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA.
The HOPE for Homeowners Board of Directors includes HUD Secretary Steve Preston, Treasury Secretary Henry Paulson, Federal Reserve Board Chairman Ben Bernanke, and FDIC Chairman Sheila Bair. They have named the following people to serve on the board as their designees: FHA Commissioner and Chairman of the Board Brian Montgomery, Federal Reserve Board Governor Elizabeth Duke, Treasury Assistant Secretary for Economic Policy Phillip Swagel, and Federal Deposit Insurance Corporation Director Tom Curry.
Read more about HOPE for Homeowners at http://www.hud.gov/hopeforhomeowners/.
Watch Secretary Preston's press conference
Without captions
With captions
###
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at http://www.hud.gov/ and espanol.hud.gov.
Back to Top
FOIA
Privacy
Web Policies and Important Links
Home
U.S. Department of Housing and Urban Development451 7th Street S.W., Washington, DC 20410Telephone: (202) 708-1112 TTY: (202) 708-1455Find the address of a HUD office near you
Monday, September 22, 2008
How Much Is $700 Billion Anyway?
Daily Real Estate News September 22, 2008
The proposed financial bailout package being considered by lawmakers will come at a cost of as much as $700 billion. To put it in perspective, using numbers from the U.S. Census,
the $700 billion is equal to:
About $2,300 per American
About $6,000 per U.S. household
About 85 percent of the New York State economy
The combined economies of all U.S. states beginning with the letter "A": Alabama, Alaska, Arizona, and Arkansas; plus Oklahoma.
The tally for all the various rescue measures launched by U.S. authorities this year runs to about $1.8 trillion. The $1.8 trillion is equal to:
About $6,000 per American
About $15,500 per U.S. householdSource: Reuters News (09/21/2008)
The proposed financial bailout package being considered by lawmakers will come at a cost of as much as $700 billion. To put it in perspective, using numbers from the U.S. Census,
the $700 billion is equal to:
About $2,300 per American
About $6,000 per U.S. household
About 85 percent of the New York State economy
The combined economies of all U.S. states beginning with the letter "A": Alabama, Alaska, Arizona, and Arkansas; plus Oklahoma.
The tally for all the various rescue measures launched by U.S. authorities this year runs to about $1.8 trillion. The $1.8 trillion is equal to:
About $6,000 per American
About $15,500 per U.S. householdSource: Reuters News (09/21/2008)
Monday, July 7, 2008
How to Stop Foreclosure While Avoiding Bankruptcy
How to Stop Foreclosure While Avoiding Bankruptcy Submitted By: Mike Trudeau
The economic condition of our country seems to by spiraling downward, the news continues to get worse. Housing has declined rapidly and there seems to be no end in site. Oil continues to hit its news high's, day after day. So, what is one to do when faced with certain bankruptcy or foreclosure? The answer may sound easier said than done, but the answer is to avoid it.
Avoiding bankruptcy is something that should be executed at just about all costs. In the past bankruptcy was the easy way out. You could find an economical attorney specializing in bankruptcy that could get you filed for a modest cost. This would wipe your debt away, so you could start a new. Unfortunately, that's the mind set in this country, we're always looking for the easy way out. Well, thanks to the new bankruptcy laws, it's no longer that easy.
The new bankruptcy law makes filing for Chapter 7 due to minimum income levels. This means that if you make more than the median (which isn't very much) you can no longer file for Chapter 7 bankruptcy, and must file Chapter 13 bankruptcy. Chapter 13 requires debtors to repay their debt through a restructuring program. This is commonly set up for approximately a 5-year period. Nothing you couldn't do with a debt consolidation program.
Now, most peoples thinking in the past was to just file for bankruptcy and remove all debt through bankruptcy, but now they have to pay it back. With this incentive gone, avoiding bankruptcy should become a priority for debt troubled individuals. The other way of thinking was that the bankruptcy would be removed form their record after a 10 year period. So, many individuals figured they could do their time, so to speak, and after the 10 years they'd be free of any bankruptcy scars. This is true, however bankruptcies never really leave you, employers and the like can ask if you've EVER filed for bankruptcy. Avoiding bankruptcy should be an absolute priority for you; otherwise it will haunt you for life.
Similarly, foreclosures are picking up steam, due to the recent housing crises we've been going through. While foreclosure doesn't have the same consequences as a bankruptcy, it is still a rather painful financial consequence that should be avoided. If you want to stop foreclosure there are a few steps you can follow. At the first site of trouble you should contact your lender. Your lender wants to work with homeowners facing bankruptcy; it doesn't do them a bit of good to you to foreclose. This is why they are willing to work with you, as it will cost them substantially if you end up foreclosing. They maybe able to work out a better payment system, interest rate reduction, or the like. Or if you simply can't afford it at all, they maybe able to work out a short sale situation, where your home is sold for less than you owe and your debts forgiven.
The numbers show that for those that are proactive and try to work with their lender are much more likely to stop foreclosure. Do all you can to stop foreclosure and you could save your credit and live to fight another day. In some cases you may just have to walk. If you're upside down several hundred thousand dollars, your lender won't work with you, and you don't have the income to support this decline asset, sometimes foreclosure may seem like the only likely answer. But, don't just give up, work with your lender, be proactive and try to save your credit, you'll be happy you did. Remember that the current real estate landscape has got mortgage lenders hemorrhaging. They want you to stop foreclosure about as much as you do, as your foreclosure will cost them much more than if you both worked something out.
The economic condition of our country seems to by spiraling downward, the news continues to get worse. Housing has declined rapidly and there seems to be no end in site. Oil continues to hit its news high's, day after day. So, what is one to do when faced with certain bankruptcy or foreclosure? The answer may sound easier said than done, but the answer is to avoid it.
Avoiding bankruptcy is something that should be executed at just about all costs. In the past bankruptcy was the easy way out. You could find an economical attorney specializing in bankruptcy that could get you filed for a modest cost. This would wipe your debt away, so you could start a new. Unfortunately, that's the mind set in this country, we're always looking for the easy way out. Well, thanks to the new bankruptcy laws, it's no longer that easy.
The new bankruptcy law makes filing for Chapter 7 due to minimum income levels. This means that if you make more than the median (which isn't very much) you can no longer file for Chapter 7 bankruptcy, and must file Chapter 13 bankruptcy. Chapter 13 requires debtors to repay their debt through a restructuring program. This is commonly set up for approximately a 5-year period. Nothing you couldn't do with a debt consolidation program.
Now, most peoples thinking in the past was to just file for bankruptcy and remove all debt through bankruptcy, but now they have to pay it back. With this incentive gone, avoiding bankruptcy should become a priority for debt troubled individuals. The other way of thinking was that the bankruptcy would be removed form their record after a 10 year period. So, many individuals figured they could do their time, so to speak, and after the 10 years they'd be free of any bankruptcy scars. This is true, however bankruptcies never really leave you, employers and the like can ask if you've EVER filed for bankruptcy. Avoiding bankruptcy should be an absolute priority for you; otherwise it will haunt you for life.
Similarly, foreclosures are picking up steam, due to the recent housing crises we've been going through. While foreclosure doesn't have the same consequences as a bankruptcy, it is still a rather painful financial consequence that should be avoided. If you want to stop foreclosure there are a few steps you can follow. At the first site of trouble you should contact your lender. Your lender wants to work with homeowners facing bankruptcy; it doesn't do them a bit of good to you to foreclose. This is why they are willing to work with you, as it will cost them substantially if you end up foreclosing. They maybe able to work out a better payment system, interest rate reduction, or the like. Or if you simply can't afford it at all, they maybe able to work out a short sale situation, where your home is sold for less than you owe and your debts forgiven.
The numbers show that for those that are proactive and try to work with their lender are much more likely to stop foreclosure. Do all you can to stop foreclosure and you could save your credit and live to fight another day. In some cases you may just have to walk. If you're upside down several hundred thousand dollars, your lender won't work with you, and you don't have the income to support this decline asset, sometimes foreclosure may seem like the only likely answer. But, don't just give up, work with your lender, be proactive and try to save your credit, you'll be happy you did. Remember that the current real estate landscape has got mortgage lenders hemorrhaging. They want you to stop foreclosure about as much as you do, as your foreclosure will cost them much more than if you both worked something out.
Sunday, June 22, 2008
New Properties for Sale or Lease
I have a few updates as far as properties that either are for sale currently, will be for sale in the very near future, or are for lease.
Let me know if any of these interest you:
Orange County, California:
4bedroom, 3 bath 2700 sq ft home in south Orange County. Conveniently located near the beach areas, shopping and the great schools in the Capistrano school district.
Town Home for lease 2bedroom 2 bath closer to the El Toro “Y” area so really close to UCI, the Specturm shopping area and just a little south of the South Coast shoppign Complexes, has a bonus room/area in the garage. The complex has a pool and a few Jacuzzis. About 2100/month, owner is flexible.
Los Angeles County:
Great Condo just 4 blocks from UCLA 2 bedrooms. Currently rented on a month to month. Makes a great kiddie condo for your young students going to any of the colleges in the area and my alma mater of USC. Has subterranean parking and a pool at building.
House in Harbor City 4/3baths nice and quiet streets. Closer to the 110 fwy. This may be a bargain for those willing to do some fix up in about 4-6 months. Will probably be for sale in the high 600’s
3 unit houses in Gardena near the 110 fwy. This one will need lots of work to be habitable. Probably around mid 500’s.
House in Carson near Cal State University at Dominguez Hills. 3 bed /1 ½ baths nice yard front and back. I have not seen the interior, but probably around 560K will get this one.
Let me know if you or someone you know are interested.
Herm. 949 742 0915
Let me know if any of these interest you:
Orange County, California:
4bedroom, 3 bath 2700 sq ft home in south Orange County. Conveniently located near the beach areas, shopping and the great schools in the Capistrano school district.
Town Home for lease 2bedroom 2 bath closer to the El Toro “Y” area so really close to UCI, the Specturm shopping area and just a little south of the South Coast shoppign Complexes, has a bonus room/area in the garage. The complex has a pool and a few Jacuzzis. About 2100/month, owner is flexible.
Los Angeles County:
Great Condo just 4 blocks from UCLA 2 bedrooms. Currently rented on a month to month. Makes a great kiddie condo for your young students going to any of the colleges in the area and my alma mater of USC. Has subterranean parking and a pool at building.
House in Harbor City 4/3baths nice and quiet streets. Closer to the 110 fwy. This may be a bargain for those willing to do some fix up in about 4-6 months. Will probably be for sale in the high 600’s
3 unit houses in Gardena near the 110 fwy. This one will need lots of work to be habitable. Probably around mid 500’s.
House in Carson near Cal State University at Dominguez Hills. 3 bed /1 ½ baths nice yard front and back. I have not seen the interior, but probably around 560K will get this one.
Let me know if you or someone you know are interested.
Herm. 949 742 0915
Friday, April 4, 2008
Day Care on Your Property??
Should You Allow a Tenant to Conduct a Daycare Business in Your Rental Property?
courtesy of http://www.rentalprop.com/tip.htm
I would never, under any set of circumstances, rent one of my California properties to anyone that might use the property as a day care facility. We have a "deep pockets" law in the Golden State that make you very vulnerable to lawsuits if the tenant is negligent in their operation of the daycare center (on your property) and it results in a serious injury or death to a child. Mr/Ms Landlord is a perceived deep pocket target and fully exposed to civil suits. I have in the past written into my rental agreements an exclusionary clause for someone that is or was a daycare owner or worker.
Howard BlumNovato, CA
Thanks, Howard, an excellent word of caution. Now to more words of caution about the same subject.
You need to be extremely careful, think hard, and get good legal advice before you allow a tenant to run a daycare business in your rental property.. In suit-happy America anything that goes awry results in a lawsuit against the person most able to pay, not necessarily the one who was at fault. In this case it will be you, the owner of the property, not the tenant.
Accidents are your biggest concern. Houses that care for children need to be retrofitted to avoid them. You would almost need to inspect the house yourself to be sure that there are no accidents waiting to happen. Even then you might not have spotted them all. Check the internet to see if there's information about setting up day care and preschools. One site that could provide the information you need is www.startadaycare.net.
You also need to get information about what, if any, businesses are allowed in residences and what permits are required. Check with the city attorney or building department. The failure of your tenant to have the right licenses and permits would geometrically increase your liability should a problem arise or a child be injured in the business.
Third, your tenant needs to have complete liability insurance, possibly with you named as a loss payee, in the event there was any suit against you.
Fourth, make sure you have a large umbrella policy to cover your liability. Ask you insurance agent for some ideas on how much you need to have.
Your first duty is to yourself, not the tenant. Err on the side of over-caution. You need to take the responsibility to see that the property is free from hazards. Most important, if you don't feel completely at ease having your tenant run a daycare business out of your rental property, don't allow it.
courtesy of http://www.rentalprop.com/tip.htm
I would never, under any set of circumstances, rent one of my California properties to anyone that might use the property as a day care facility. We have a "deep pockets" law in the Golden State that make you very vulnerable to lawsuits if the tenant is negligent in their operation of the daycare center (on your property) and it results in a serious injury or death to a child. Mr/Ms Landlord is a perceived deep pocket target and fully exposed to civil suits. I have in the past written into my rental agreements an exclusionary clause for someone that is or was a daycare owner or worker.
Howard BlumNovato, CA
Thanks, Howard, an excellent word of caution. Now to more words of caution about the same subject.
You need to be extremely careful, think hard, and get good legal advice before you allow a tenant to run a daycare business in your rental property.. In suit-happy America anything that goes awry results in a lawsuit against the person most able to pay, not necessarily the one who was at fault. In this case it will be you, the owner of the property, not the tenant.
Accidents are your biggest concern. Houses that care for children need to be retrofitted to avoid them. You would almost need to inspect the house yourself to be sure that there are no accidents waiting to happen. Even then you might not have spotted them all. Check the internet to see if there's information about setting up day care and preschools. One site that could provide the information you need is www.startadaycare.net.
You also need to get information about what, if any, businesses are allowed in residences and what permits are required. Check with the city attorney or building department. The failure of your tenant to have the right licenses and permits would geometrically increase your liability should a problem arise or a child be injured in the business.
Third, your tenant needs to have complete liability insurance, possibly with you named as a loss payee, in the event there was any suit against you.
Fourth, make sure you have a large umbrella policy to cover your liability. Ask you insurance agent for some ideas on how much you need to have.
Your first duty is to yourself, not the tenant. Err on the side of over-caution. You need to take the responsibility to see that the property is free from hazards. Most important, if you don't feel completely at ease having your tenant run a daycare business out of your rental property, don't allow it.
Monday, March 10, 2008
Sound Familiar ???
As some of you know, i keep interesting to me, old articles. this is just one of them. sound at all familiar? then came the doubling in home prices for 3 years.
Bad Loans Surge
A Weiss Associates report shows that the loan loss reserve ratio, the amount of money that banks set aside to handle bad debts divided by the actual value of losses, has dropped to its lowest level in eight years. In 2001 loan defaults skyrocketed, and the banks did not keep up with their reserving. This bodes poorly for the economy, but could provide some opportunity for investors looking to buy high-quality bank stocks.
UFool on the Hill
By Bill Mann (TMF Otter) January 18, 2002
We can file this one under the "Wow, but duh file."
According to a report released Wednesday by bank rating agency Weiss Associates, as of September 30, 2001, U.S. banks' loan loss reserve ratio decreased to its lowest level since the economy was emerging from a mini-recession back in 1993. In two years, this reserve has decreased from 170% in 1999 to 129% in 2001. Weiss Associates' survey sample was all 9701 banks in the United States.
What the heck does this mean? Well, there is a statutory requirement that all banks set aside money in a reserve in order to protect the bank's depositors (and shareholders) against having a series of losses, or one big loss, that might take down the bank. Banks do this, generally, by estimating the default risk for their loan portfolios each year, given the financial health of their debtors, the economic environment, and a myriad of other influences. Even though the company does not have to disburse these moneys, it cannot carry them as assets on its balance sheet, either -- it holds them in "reserve." Occasionally a bank will overestimate its loan loss reserves and move some of it back to its regular unencumbered asset account.
Not this year, though. In 2001 the average bank set aside 42% more than it had in 2000, meaning that the banks were prepared for some rough times among their loan customers. But they underestimated just how bad it would be: The loan charge-offs through the first three quarters increased by 50%. So even though the raw number was substantially higher, the ratio was lower.
Defaults much higher than anticipatedWe're talking about some big bucks, too. The total amount set aside was $30.2 billion; the amount charged was $25.4 billion. This, mind you, is only the dollar amount of loans that were completely written off -- maybe the debtor declared bankruptcy, or the bank seized collateral but could not recover the full amount of the loan. Then add to this the number of nonperforming loans -- those loans out of compliance by being more than 90 days past due but have yet to be written down as losses -- which increased from $48.8 billion to $59 billion in 2001.
There are a number of ways to look at this, and none of them point to an economy that is poised for a rebound. Dr. Martin Weiss, chairman of Weiss Associates, pointed out in a press release that U.S. banks were too slow in recognizing the rapid degradation of the economy in raising their loan loss reserves. "The industry has started to acknowledge the need for higher reserves to cover the losses, but it is too little too late as the growth in problem loans continues to outpace the growth in reserves." It was just such a problem, for example, that knocked shares of sub-prime lender Providian (NYSE: PVN) down more than 90% last year after its default rate suddenly skyrocketed.
I'd have to say that there are a few points that come clear with this data. First and foremost, while an increase in loan losses is a bad thing, it shows that some of the excess investment capital that businesses made in the go-go late 1990s is starting to burn off. This is a painful process, since these bank defaults often come at the tail end of company bankruptcies. With this continued charge-off activity comes new job losses, personal loan defaults, and a general lack of liquidity. After all, the multiple Federal Reserve interest rate cuts in the last year were meant to stimulate additional lending by the banks and additional spending by companies. If the banks are seeing their existing loan portfolio's net charge-offs increase by 50% at the same time, are they really going to increase their loan activity or take more debtor risk? Not likely.
These charge-offs are a fairly significant drag on the equity value and earnings of the banks themselves. Interestingly enough, though, another Weiss Associates study released in the past week shows the level of effectiveness that regulatory controls on bank lending have: Of the 9700 banks in the country, only four failed in 2001, a year when financial conditions were ripe for bank defaults given the spiraling number of bankruptcies. Of the four banks that did fail, each of them has Weiss' lowest rating for loan quality.
The other thing to consider is that the financial standing and performance of banks may suffer, as the money that is set aside is subtracted both from earnings and from the company's asset base. This may provide some additional future investment opportunities in strong community banks and regional banks, as poor earnings comparisons over the next 12 months could cause them some stock price pain. Of the banks that were highlighted as having the worst loan quality in the country, only one, Prestige Bank (Nasdaq: PRBC), is publicly traded. Several of the companies with the highest loan quality are also publicly traded, including Bank of Granite (Nasdaq: GRAN), Farmers and Merchants Bank (Nasdaq: FMBL), and Burke & Herbert (OTC: BHRB), and may provide opportunities for getting excellent companies at reasonable prices.
The end result here, though is that the banks are seeing more loan pressure and greater degradation than they had anticipated, meaning that the recession we have entered is deeper than many of those who provide access to liquidity had earlier assumed. This has great historical precedence, as we generally do not realize that we are in a recession until well after it is already underway, just as we won't know we are emerging for the recession until we've actually emerged. But those who are saying that they are seeing improvements probably haven't consulted the banks, who are wondering when the bad loan surge will begin to recede.
Fool on!Bill Mann, TMFOtter on the Fool Discussion Boards
Bill Mann was in no way part of this particular problem. Other problems, definitely. He does not own shares in any of the companies mentioned.
Bad Loans Surge
A Weiss Associates report shows that the loan loss reserve ratio, the amount of money that banks set aside to handle bad debts divided by the actual value of losses, has dropped to its lowest level in eight years. In 2001 loan defaults skyrocketed, and the banks did not keep up with their reserving. This bodes poorly for the economy, but could provide some opportunity for investors looking to buy high-quality bank stocks.
UFool on the Hill
By Bill Mann (TMF Otter) January 18, 2002
We can file this one under the "Wow, but duh file."
According to a report released Wednesday by bank rating agency Weiss Associates, as of September 30, 2001, U.S. banks' loan loss reserve ratio decreased to its lowest level since the economy was emerging from a mini-recession back in 1993. In two years, this reserve has decreased from 170% in 1999 to 129% in 2001. Weiss Associates' survey sample was all 9701 banks in the United States.
What the heck does this mean? Well, there is a statutory requirement that all banks set aside money in a reserve in order to protect the bank's depositors (and shareholders) against having a series of losses, or one big loss, that might take down the bank. Banks do this, generally, by estimating the default risk for their loan portfolios each year, given the financial health of their debtors, the economic environment, and a myriad of other influences. Even though the company does not have to disburse these moneys, it cannot carry them as assets on its balance sheet, either -- it holds them in "reserve." Occasionally a bank will overestimate its loan loss reserves and move some of it back to its regular unencumbered asset account.
Not this year, though. In 2001 the average bank set aside 42% more than it had in 2000, meaning that the banks were prepared for some rough times among their loan customers. But they underestimated just how bad it would be: The loan charge-offs through the first three quarters increased by 50%. So even though the raw number was substantially higher, the ratio was lower.
Defaults much higher than anticipatedWe're talking about some big bucks, too. The total amount set aside was $30.2 billion; the amount charged was $25.4 billion. This, mind you, is only the dollar amount of loans that were completely written off -- maybe the debtor declared bankruptcy, or the bank seized collateral but could not recover the full amount of the loan. Then add to this the number of nonperforming loans -- those loans out of compliance by being more than 90 days past due but have yet to be written down as losses -- which increased from $48.8 billion to $59 billion in 2001.
There are a number of ways to look at this, and none of them point to an economy that is poised for a rebound. Dr. Martin Weiss, chairman of Weiss Associates, pointed out in a press release that U.S. banks were too slow in recognizing the rapid degradation of the economy in raising their loan loss reserves. "The industry has started to acknowledge the need for higher reserves to cover the losses, but it is too little too late as the growth in problem loans continues to outpace the growth in reserves." It was just such a problem, for example, that knocked shares of sub-prime lender Providian (NYSE: PVN) down more than 90% last year after its default rate suddenly skyrocketed.
I'd have to say that there are a few points that come clear with this data. First and foremost, while an increase in loan losses is a bad thing, it shows that some of the excess investment capital that businesses made in the go-go late 1990s is starting to burn off. This is a painful process, since these bank defaults often come at the tail end of company bankruptcies. With this continued charge-off activity comes new job losses, personal loan defaults, and a general lack of liquidity. After all, the multiple Federal Reserve interest rate cuts in the last year were meant to stimulate additional lending by the banks and additional spending by companies. If the banks are seeing their existing loan portfolio's net charge-offs increase by 50% at the same time, are they really going to increase their loan activity or take more debtor risk? Not likely.
These charge-offs are a fairly significant drag on the equity value and earnings of the banks themselves. Interestingly enough, though, another Weiss Associates study released in the past week shows the level of effectiveness that regulatory controls on bank lending have: Of the 9700 banks in the country, only four failed in 2001, a year when financial conditions were ripe for bank defaults given the spiraling number of bankruptcies. Of the four banks that did fail, each of them has Weiss' lowest rating for loan quality.
The other thing to consider is that the financial standing and performance of banks may suffer, as the money that is set aside is subtracted both from earnings and from the company's asset base. This may provide some additional future investment opportunities in strong community banks and regional banks, as poor earnings comparisons over the next 12 months could cause them some stock price pain. Of the banks that were highlighted as having the worst loan quality in the country, only one, Prestige Bank (Nasdaq: PRBC), is publicly traded. Several of the companies with the highest loan quality are also publicly traded, including Bank of Granite (Nasdaq: GRAN), Farmers and Merchants Bank (Nasdaq: FMBL), and Burke & Herbert (OTC: BHRB), and may provide opportunities for getting excellent companies at reasonable prices.
The end result here, though is that the banks are seeing more loan pressure and greater degradation than they had anticipated, meaning that the recession we have entered is deeper than many of those who provide access to liquidity had earlier assumed. This has great historical precedence, as we generally do not realize that we are in a recession until well after it is already underway, just as we won't know we are emerging for the recession until we've actually emerged. But those who are saying that they are seeing improvements probably haven't consulted the banks, who are wondering when the bad loan surge will begin to recede.
Fool on!Bill Mann, TMFOtter on the Fool Discussion Boards
Bill Mann was in no way part of this particular problem. Other problems, definitely. He does not own shares in any of the companies mentioned.
Thursday, February 21, 2008
Why should I consider a Lease Purchase?
· Top sales price for your property
· No Real estate Commissions!
· Large Market of available buyers at all times
· Better quality tenants because they plan on owning the property some day
· Higher rent then usual for the market area
· Non-Refundable option consideration (down payment) which is yours to keep
· Tenant Buyer responsible for all minor maintenance (no 2:00 am phone calls)
· Seller remains on deed-your property until option is exercised
· Seller retains tax shelter
· No lengthy vacancies. No waiting 60-90-120 days for conventional financing to come in
· Stops the money hemorrhage of mortgage payments (for vacant properties)
call me for more info or guidance, if needed; (949) 742 - 0915
· No Real estate Commissions!
· Large Market of available buyers at all times
· Better quality tenants because they plan on owning the property some day
· Higher rent then usual for the market area
· Non-Refundable option consideration (down payment) which is yours to keep
· Tenant Buyer responsible for all minor maintenance (no 2:00 am phone calls)
· Seller remains on deed-your property until option is exercised
· Seller retains tax shelter
· No lengthy vacancies. No waiting 60-90-120 days for conventional financing to come in
· Stops the money hemorrhage of mortgage payments (for vacant properties)
call me for more info or guidance, if needed; (949) 742 - 0915
Wednesday, January 30, 2008
Spa day
Just had to tell you all about this experience. Please indulge me with this non real estate related item. I was given a gift certificate to Burke Williams spa as a birthday gift.
I finally made my appointment and was transformed into a few hours of sheer bliss. I am thinking of changing one of my favorite hobbies to spaing.
I would like to suggest that you do this at least 4 times a year. Takes only a few hours, but you will feel completely different. I was scheduled for a whirlpool birthday bath in a semi private room – oh fabulous. What can I say, when you have someone else make sure the tub is clean for you, draws the water and adds fabulous things to it. ( and then cleans up after you – oo la la ) Gabriela did a wonderful job with my milk bath with some oils that smelt and made me feel silken. The fruit in a bowl and eye cucumbers just enhanced the bathing experience. My next home will have a whirlpool tub. Glad I did decide to have the bath after all.
This day as it turned out was one of those days when the President comes to town. So of course there was a lot of hub bub going on outside, and you were none the wiser on the inside of the spa facility. I would like to suggest that you do the items you are scheduled for in the order they suggest and have you hair done as the last thing.
Next I was scheduled for eyebrow waxing –sort of an ouch. Cassandra had a great touch and I hardly even noticed. Then she gave me a fabulous facial. Oh it was heavenly. I have to go back for a back facial. The products used, had just a hint of whatever fruits or vegetables they were made form, they all felt great going on and being removed. – I have very sensitive skin; everything felt soothing.
There are several areas for relaxing either before your treatments or afterward, the whirlpool, heat and dry saunas, along with steam sauna, the outdoors area. To just sit back and relax.
Oh yeah one more thing, the areas are segregated so the men have their own area and the women ours so you can wear a suit for the water works if you wish or not. Also you really do not have to bring a thing. They even had robes and towels that were comfortable for me. I would go to the gym first then to the spa to take full advantage. This also makes great gifts for friends and family. Hint hint. So help someone else splurge and feel great.
This was a fabulous few hours. Thanks Suzette.
I finally made my appointment and was transformed into a few hours of sheer bliss. I am thinking of changing one of my favorite hobbies to spaing.
I would like to suggest that you do this at least 4 times a year. Takes only a few hours, but you will feel completely different. I was scheduled for a whirlpool birthday bath in a semi private room – oh fabulous. What can I say, when you have someone else make sure the tub is clean for you, draws the water and adds fabulous things to it. ( and then cleans up after you – oo la la ) Gabriela did a wonderful job with my milk bath with some oils that smelt and made me feel silken. The fruit in a bowl and eye cucumbers just enhanced the bathing experience. My next home will have a whirlpool tub. Glad I did decide to have the bath after all.
This day as it turned out was one of those days when the President comes to town. So of course there was a lot of hub bub going on outside, and you were none the wiser on the inside of the spa facility. I would like to suggest that you do the items you are scheduled for in the order they suggest and have you hair done as the last thing.
Next I was scheduled for eyebrow waxing –sort of an ouch. Cassandra had a great touch and I hardly even noticed. Then she gave me a fabulous facial. Oh it was heavenly. I have to go back for a back facial. The products used, had just a hint of whatever fruits or vegetables they were made form, they all felt great going on and being removed. – I have very sensitive skin; everything felt soothing.
There are several areas for relaxing either before your treatments or afterward, the whirlpool, heat and dry saunas, along with steam sauna, the outdoors area. To just sit back and relax.
Oh yeah one more thing, the areas are segregated so the men have their own area and the women ours so you can wear a suit for the water works if you wish or not. Also you really do not have to bring a thing. They even had robes and towels that were comfortable for me. I would go to the gym first then to the spa to take full advantage. This also makes great gifts for friends and family. Hint hint. So help someone else splurge and feel great.
This was a fabulous few hours. Thanks Suzette.
Tuesday, January 29, 2008
Cities Feel Impact of Rising Foreclosures
Daily Real Estate News January 28, 2008
The conversation at the U.S. Conference of Mayors winter meeting, which ended Friday, was focused on stemming foreclosures and managing vacant properties.
After all, mayors say dealing with vacant houses hits the municipal budget hard. Chicago estimates that each vacant house costs the city an average of $34,000 for inspections, court actions, extra law enforcement, visits from city utilities, and sometimes demolition.Kilder, treasurer for Genesee County, Mich., whose county seat is in economically devastated Flint, urged mayors to stop selling tax liens and liquidating their interest in abandoned property because it puts the city in the hands of speculators.
"Even if a community doesn't own the property," Kildee says, "local leaders own the problem. The public is going to hold us all accountable for the conditions in our neighborhoods and simply saying this property is owned by some mortgage company or some speculator in some city doesn't get us off the hook.
"Source: The Wall Street Journal, T.W. Farnam (01/28/08)
The conversation at the U.S. Conference of Mayors winter meeting, which ended Friday, was focused on stemming foreclosures and managing vacant properties.
After all, mayors say dealing with vacant houses hits the municipal budget hard. Chicago estimates that each vacant house costs the city an average of $34,000 for inspections, court actions, extra law enforcement, visits from city utilities, and sometimes demolition.Kilder, treasurer for Genesee County, Mich., whose county seat is in economically devastated Flint, urged mayors to stop selling tax liens and liquidating their interest in abandoned property because it puts the city in the hands of speculators.
"Even if a community doesn't own the property," Kildee says, "local leaders own the problem. The public is going to hold us all accountable for the conditions in our neighborhoods and simply saying this property is owned by some mortgage company or some speculator in some city doesn't get us off the hook.
"Source: The Wall Street Journal, T.W. Farnam (01/28/08)
Wednesday, January 2, 2008
Freshen Up Your Rental Property
This story was printed from CompleteLandlord.com,located at
12/17/2007
Topic: Property Maintenance and Repair
As a small landlord, I am always looking for easy ways to spruce up my rentals without spending a lot of money. My tenants appreciate the continued attention that is paid to their rental and I have a more rentable property for the future. Here are a few ideas for easy updates on your rental units that will not only freshen up your property, but also will help keep tenants happy:
12/17/2007
Topic: Property Maintenance and Repair
As a small landlord, I am always looking for easy ways to spruce up my rentals without spending a lot of money. My tenants appreciate the continued attention that is paid to their rental and I have a more rentable property for the future. Here are a few ideas for easy updates on your rental units that will not only freshen up your property, but also will help keep tenants happy:
- Repainting kitchen cabinets in a rental that looked outdated and unstylish can change the entire feel of the property. Sometimes all it takes is a can of paint, which you can purchase cheaply by asking a local paint store for returned paint. The gallon of semi-gloss set me back only $5.
- Buying a new shower curtain is something you should always do between tenants. When showing off a property, the last thing you want a prospective tenant to see is the grime on your previous tenant’s shower curtain.
- Tile a foyer to add a distinctive feature to your rental unit. Most rentals have linoleum entryways, so tiling your foyer puts your rental a step above the rest. I recently tiled an 8’ by 8’ foyer and paid only $125 for materials.
- Replacing the doors in your rental can be a surprisingly cheap way to make a change to your property. Basic hollow-core doors cost about $20, but spend $10 more and get six panel doors to add a luxurious, stylish feel to your rental.
Subscribe to:
Posts (Atom)
Get Updated When This Page is Updated
Monthly Home and Garden Tips
Monthly Home and
Garden Care Tips