Ohio Floating Bonds to Assist Refinancing Of Homes and Helping to Prevent Foreclosures

This was worth a separate post to me. The State of Ohio is getting ready to float bonds that will allow them to get into the refinancing arena...helping people NOT foreclose and lose their homes. This is an interview conducted by MSNBC television.

Now I have tried to get the link to take you directly to the video. Instead, I can take you here - then scroll down to videos on the right and 'Foreclosures In Ohio' is the first one. There is more than one way to skin a cat LOL

This is worth watching if you are

a) worried about your own mortgage issues
b) interested in our State Economy

I don't have an opinion yet. More research to follow Peace Out - 3C

Ohio's 2006 Foreclosure Rates Jump 24% in One Year

The stats are "in" for 2006 on foreclosures and they are not going to make you happy. Depending on whether or not you use the measure of the Mortgage Bankers Assn. (which says we are first in foreclosures for 2006) or RealtyTrac (which says Ohio is 8th), the rise in precentages is mind blowing. The number of new cases rose 24% in one year. Policy Matters released their figures this week and in Cuyahoga County alone, there were 13,610 new foreclosures.

I was alerted to this in an article on Cleveland.com, written by Plain Dealer reporter Thomas Ott. I blogged before about the NeighborWorks program, and this article talks about a case involving Adjustable Rate (ARM) mortgages. A few years ago, while interest rates were about 5.5% on the National Level, people were getting ARMs for 10-14% interest rates.

Cuyahoga County Commissioners Dimora, Hagan and Jones issued a report (in pdf here) based on calls, meetings, public meetings and discussions. It's worth a read.

Folks, all I can say is, please contact one of these programs before it gets to the critical stage! It only takes about three months of missed payments for things to spiral out of control. And I have to say again, if the only way you can buy a home is to pay 13% interest rates when the going rate is 6.06)% (as of today), please wait until you can qualify for a much lower rate. The County Program is called 'Don't Borrow Trouble,' and if you have any inkling that you might have difficulty making your payments in the future, even for a few months, please call them at: 216-436-2000. There is also a United Way hot line and you can reach it by simply dialing 211.

Other relevant posts:
Professor Kathleen Engel discusses predatory lending
What to Look Out For: Avoid Predatory Lending

March 28th Follow Up: PD Reporter Ott has a very interesting follow up article you can read on Cleveland.com. It deals with a law proposed in Ohio to require lenders who foreclose on homes to file their deeds - maybe I am naive, I didn't know this was not required! I know Title technically does not transfer to new owners until the title is filed at the Court house...at least for us 'regular' people. This is a great article dealing with the thorny issue Cleveland has had to deal with, tracking down owners of long abandoned buildings, collecting taxes, etc.

Peace Out - 3C

Buckeye Savers Bonds: Help Build Parts of I-71 or I-90?

Watching the news on WKYC tonight I was intrigued at the story about a new plan set up by the State of Ohio. Buckeye Savers Bonds can be bought for as little as $5000. Treasurer Richard Cordray has information on his website. It includes replacement of bridges (I-90) in Lake County - a total of 24 highway improvement programs. (note: the previous link is pdf) The WKYC story said 100 million dollars worth of bonds was needed; the website says the entire highway program costs $190 million.

Supposedly, they are estimating these Series K Bonds will reap 'buyers' with a 3 1/2 to 4 percent interest on their investment...and that interest is tax free, both State and Federal. What do you think?

How about also floating bonds to fund the 3C Corridor Program? Peace Out - 3C

April 1, 2007: Here is an update to this post, also from The Plain Dealer under their Business Diary section from March 27th:

Highway bonds are triple tax-free

"Individual investors next week will have an opportunity to buy state bonds that are exempt from federal, state and local income taxes. Through the Buckeye Savers program, the state is issuing $190 million in Series K highway capital improvement bonds. The state set the minimum purchase - $5,000 - low enough to be affordable to individual investors, said Holly Hollingsworth, spokeswoman for Ohio Treasurer Richard Cordray. Investors can place orders now through brokers. The sale will be April 3. The bonds will be backed by the state of Ohio and highway receipts. Among the Cuyahoga County projects the bonds will pay for: an upgrade of U.S. 322/Mayfield Road and the installation of an "intelligent transportation system" on parts of Interstates 90 and 71. The system will help provide road weather information to drivers. "

Do's And Don'ts: Are Granite Counter Tops So 'Yesterday?'

So I discovered msn.com's real estate section today for the first time. Maybe I'm a tad late to the party on this one. Anyway, they had an article about trends that work and don't work if you are planning on putting your house on the market. I'm re - printing them here verbatim and of course adding my comments in red because I can't help myself lol:

1. Avoid installing bowl-shape, above-the-counter bathroom sinks. They look pretty but have proved to be harder to maintain and keep clean. This is a no-brainer. I could tell by looking at them this would happen! I agree with this one.

2. Use engineered stone compound for kitchen countertops. The material is less expensive than granite and is expected to be the trend this year. Hmm. My buyer clients are still asking for granite - maybe Cleveland is behind the curve on this. I DO however agree, they don't hold up as well as engineered countertops.

3.Don't install too many glass cabinet doors in your kitchen. They look better in magazines than they do in real life, where homeowners must keep their cabinets in perfect order or suffer embarrassment. Yes. One or two for 'accent' but the rest of your cabinets are containers of your life you may not want buyers to see! Or relatives over for dinner, for that matter.

4. Consider replacing a wooden or chain-link fence with a wrought-iron one. Wrought-iron fences portray a look of luxury. Maybe they look luxurious but unless your dog is a mastiff or Burmese mountain dog, they can get through the bars. My experience is that people want fences. And they want them for pets as much as they do kids. Or privacy. Ohio City is a great place for wrought iron. But in general, I don't find it as practical except maybe as a front decorative fence. Just my two cents.

5. When repainting trim for shutters, doors and window frames, go with bold and deep colors. And don't get rid of the trim around interior window openings -- it only looks cheap. People actually take out this trim?

6.If replacing floors, avoid bamboo. This flooring was popular when it debuted, but now users are saying it is easily dented and scratched. It is also more likely to warp due to weather and humidity. I don't think this was ever a big trend in Cleveland.

7.If you're adding new construction, don't employ concrete blocks in exterior walls. They are not attractive and are more likely to leak moisture if not properly installed.

8. If you're redoing a kitchen or bathroom, consider using glass tiles instead of ceramic ones. They're gaining popularity again because of reflective qualities. This is not a bad idea; already popular in places like downtown condominium complexes. But consider your budget and remember that good taste in colors and styles chosen is probably much more important than if they are glass or ceramic.

Personally, I like this list of five projects on Money Magazine's website written by Arianne Cohen. Things like new shower doors, painting kitchen cabinets to freshen them up, these are inexpensive and probably produce as good results as glass tiles instead of ceramic. Just my humble opinion! Peace Out - 3C

Predatory Lending: What to Look Out For As You Search for a Home

The weather is better, more people are looking to buy homes. Caution please, about the type of loan you get. Specifically, avoid predatory lenders. Here are some tips about what to watch out for:

*Someone tries to get you to buy a home for more than it is worth based upon an inflated or false appraisal. You can help avoid this by working with a real estate professional who can provide you with real comps. Not to downplay the Internet appraisal models like Zillow, but, a Realtor® in the trenches can get you the best, updated information about home sales in a particular area.

*A lender is a predator if they are knowingly lending more money to you than you can repay, lending more than 100% of the value of the loan, or charging high fees in connection with a loan. You can help ensure you make a wise loan decision by talking to at least three mortgage lenders. You can weigh what all three tell you. And keep in mind, going with the one that seems to promise you the moon may not be wise: if it seems too good to be true, it probably is.

*If a mortgage lender encourages you to falsify any information (yearly salary, etc) in order to qualify for the loan, be wary and seek another lender. Mortgage fraud is not good. Note: do you look good in prison orange?

*The home you want to buy looks a lot like others sold in the area, in similar condition, but someone wants you to pay a lot more for the home than the others. This may sound like the first point, but it's a tad different. There may not be an appraisal involved. Make sure a qualified professional advises you on home sales so you can make a wise decision.

*You are asked to sign blank documents, with people telling you the details will be filled in later. This may sound like a no brainer, but believe me, it happens.

*Someone writes up a purchase agreement for a home, and it has an addendum stating that the Seller will be holding a second mortgage which will be 'forgiven' by the Seller immediately upon your taking Title to the home. This is a big red flag. It means someone is inflating the price of the house - and someone is getting the difference in the real price of the house and the inflated price - that someone should not be you, a broker, a lender or an appraiser. It's fraud.

*You are told that your only chance of getting a loan will be through this one lender. Now I know the American Dream is to own a home. But, if only one mortgage lender in the World will qualify you to get a mortgage....it probably should make you think: is this really the right time for me to buy, or should I wait and save money, clear up my credit, first? And of course if you have checked with other mortgage lenders as I stated above, you will have a better idea about whether now is the right time for you to consider buying a home.

I may be a Realtor® and yes I only make money if people buy or sell homes. However, I need to be able to sleep at night! Those of us who are true professionals only want you to buy a home when you are ready, willing and able. On that note, if you have concerns and know you cannot buy a home now, but want to figure out a strategy so that sometime in the future you CAN buy a home, let me know. There are financial counselors, free of charge, who will work with you for a year (in the mortgage 'arm' of my company) so that you can begin to get your finances on track. Here is an article from The New Standard written by Michelle Chen, about Ohio's Predatory Lending Laws. Peace Out - 3C

Euclid Corridor Project Discussed at Cleveland's City Hall Today

The Euclid Corridor Project was analyzed today at City Hall; progress was discussed. Did you know that the Silver Line Transportation Plan of RTA is expected to entice 56,000 new jobs to Cleveland - there will be 36 stops, sidewalks, trees; you can check out the Silver Line Plans. What do you think? Construction begins between E 55th and E. 83rd street this Thursday. This is the Cleve. State Univ. report on the project and the fact that the Corridor is one of the Oral History Art Project sites to be developed. These are all of the sites for 'audio' oral histories: Public Square; E. 9th; Playhouse Square; E. 19th; E. 40th; E. 59th; between E. 60th and E. 90th (TBD); E. 93rd; Adelbert Road – University Circle; Ford-Euclid – University Circle.

This has been in the works for a while. Here is a press release issued by Senator Voinovich in 2003.

Here are some maps/renderings of the Project from the Silver Line (RTA) site.

Peace Out - 3C

Walmart Withdraws Banking Idea....Do We Have a Double Standard or Not?

I've written a few posts on Walmart and Steelyard Commons. One of the posts led to comments on Walmart's efforts to get further into the banking business. (you will have to read the comments to get this banking thread)

I'm not a huge Walmart fan, I think it's great that they are not taking the tax abatement for their Steelyard Commons location; I think it's great they are doing some community (commercial) programs in several states (including Ohio) that will supposedly help small businesses near Walmart. But getting into banking - other than providing ATM services or check cashing as other retailers do, seemed like the fox guarding the chicken coop to me. I do have a slight twist on this thought though. Apparently Target already has similar banking services to the type of service Walmart sought.

Pat Combs, President of the National Assn of Realtors® had an official comment on Walmart's withdrawal of it's efforts to increase it's banking services. She talks about how mixing finance and commerce is a bad idea for our country. I can't help but feel that even though Target and Lowe's may be 'better neighbors' (and I agree), it's still a double standard no?! I suspect Walmart would have had a strong case if they had continued in this effort, or, that Target and others with the increased banking items, might have lost theirs?

Someone may be able to help me understand why there is a difference here. Peace Out - 3C