Discover North Seattle: May 2008

Here in Washington state, there are new laws just passed by the legislature in an attempt to protect homeowners in danger of foreclosure.

The new laws are well-intended but may actually make it tougher and more expensive for pre-foreclosure homeowners to sell their home.  Poorly written, these laws leave way too much room for real estate agents to get sued if a home doesn't sell. 

These laws were quickly drafted and passed because there has been a rash of fraudulent activity, as scammers are looking for distressed homeowners in order to take advantage of their vulnerablilty.  Unfortunately, the wording in the laws lumps real estate agents into the fray along with the aforementioned scammers, leaving them open to potential frivolous lawsuits.

The law states that you are considered a "distressed home consultant" even if you're the one buying the home.  And as the "consultant", the loosely written law can be interpreted to force you to put the seller's needs above your own.  So if you pay less than the house is worth, it's possible you could be sued by the seller for damages!  This is just one of many issues with the new law.  The rest I won't even get into in this article.

I bring this up because after June 12th, 2008, you may find very few agents willing to help you sell your home if you are in pre-foreclosure.  Actually, if you're within 4 months of going into pre-foreclosure agents may balk at representing you.  I also think a lot of homes will go off the market because the Realtor may see it as too high of a risk.

I believe this law will be clarified and re-written (the Attorney General is working on it right now), but the legislative session is over and I don't believe the next one starts until October.  So between now and October the short-sale/pre-foreclosure market will be a bit dicey.

So how do you get your distressed home sold?  Well, I recommend hiring an attorney to help you (attorneys are exempt from these lawsuits, according to the new law).  Or you could search out Agents that work only with REO properties (Real Estate Owned). 

Either way, I believe between now and October you will find a lot less help in getting your distressed home sold.  It's an unfortunate and unintended consequence of laws that could've been written better by a monkey.

18 other states have enacted similar laws, but only Washington's law leaves real estate agents vulnerable to frivolous litigation.  Many times, agents don't make much money helping distressed property owners sell their homes.  Sometimes the banks force them to take half of the usual commission and, after marketing and brokerage costs, that doesn't leave much for the agent.  So with so much risk and so little potential gain, agents willing to work with you may be few and far between.

Hopefully my October assumption is correct and this will only be a temporary, embarassing zit on the forehead of a legistlature that doesn't read laws before they pass them.

I now step down from my soapbox...  :-)

- Jay Silver

Every once in a while I'll drop a page from my journal into my blog.  I'm working on writing things down more.  People say it's therapeutic.  :-) 

Not much to do with real estate. I think that sometimes we need to slow down and keep our eyes open to what's going on around us, that's all.  

Sunday, May 18th, 2008:

I'm sitting here at Chocolatti in Greenwood, waiting for a friend to join me at this most excellent coffee shop.  I don't think he's coming though.  Too bad.  There was a lot to talk about today.

I look across the street and there's some dude - older guy, salt and pepper hair and dressed in dirty, all-black jeans and sweater.  He just finished taking a pee against the building and now he's long gone by the time I'm done writing about him.

It's about five minutes later, here he comes again.  He has no shoes.  He sat back down in the same place I first saw him.  It's odd to me where he's sitting - as it's only a few feet from where he peed just a few minutes ago.  It must be his place of comfort, sort of like his "home base" I guess. 

Some other guy is now walking with his son, about 2 years old, and they begin talking to the man in black.  Whatever is said between them, the man in black finds it humorous and begins to laugh.  He claps his hands together once and tilts his head back against the outside wall of his home base. 

The other man and his son are soon gone, continuing on their walk.  The man in black is no longer laughing.  There he sits, on the concrete parking lot.  His knees pulled up to his chest, arms hanging over his knees.  His moment of levity has passed, now he looks bored as he flits his fingers back and forth.

I just makes me wonder how often he finds himself laughing.  A moment of peace.  Ten, maybe twenty breaths of air that aren't weighed down or thickened by the burdens of pain and addiction.  That moment he was laughing, I wasn't concerned for him. 

It's his life between laughs that I wonder about.

A white Honda Civic  just parked on the street, blocking my view of the man in black.  I'm sure he's still sitting there, though I can no longer see him.

- Jay Silver

I was talking to my friend last Sunday and he mentioned most of the homes I had listed were out of his price range.

Well, I thought I'd start posting a regular blog entry of 2 bedroom condos you can still get for under $200,000 in North Seattle.  These are gems and they're affordable!

If you were to use certain programs available (if you qualify), you could get into one of these for a mortgage payment around $1,000 per month.

So why not own for the same price as your rent (and rent out that second bedroom to someone else)?

Check 'em out here: http://locator.nwmls.com/scripts/mgrqispi.dll?APPNAME=Locator&PRGNAME=MLSLogin&ARGUMENT=I9xUF6hi%2BAmcF%2B8gU%2BqONnoXP2fZdDbBswcWe%2FJ5BE4%3D&KeyRid=1

(This link is available for the next 30 days)

- Jay Silver

It's always a treat to see a new cafe open its doors, especially when it's only a few blocks from my house! 

Back in March the Blue Saucer Cafe threw their proverbial hat in the ring and started slinging shots for the Maple Leaf/North Seattle masses.  Actually, I don't know if the "masses" have started showing up yet.  But if the Saucer stays on the path of righteous coffee-making they won't do too bad.  They have roots in coffee, as the owner is formally of Hotwire Coffee House.  So they may be new to the neighborhood, but their blood flows dark brown.  :-)

Blue Saucer is just down the street from Cloud City Coffee House, which may make it difficult for business until customers realize there is a whole different vibe here.  It's a bit smaller but with a nicer interior and more welcoming ambience.  They serve StumpTown Coffee (free trade, etc.), of who's Columbian blend I am quite a (new) fan.

If you're working on something and need a spot that's a little quieter in the Maple Leaf/Northgate area, check out The Blue Saucer.  The music isn't blaring in your ears and the paint isn't peeling off the walls like you might find in some other independent shops. 

They're so new they don't have a website yet.  So you just have to experience it first-hand if you're in the area. 

Right on the corner of 92nd and Roosevelt in Maple Leaf.

- Jay Silver

You've watched the news and read about it in the papers. You know, the "credit crisis" and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren't making loans anyway. So, why bother, right? Wrong!

We're right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers.  It seems the press just can't get enough of all the gloom and doom in the housing industry.  The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn't required.  You just need to know where to look.  Who are these lenders? They're right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn't technically have a minimum credit score, although, in practice, lenders won't approve an FHA loan with a credit score below 500. But that's a far cry from the notion that an 800 score is the only thing lenders care about.

The best part?  FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant.  FHA borrowers only need to have $500 in a transaction.  All the while, FHA mortgage rates are as good or better than their conventional counterparts.

Low or no down payment, extremely competitive rates and easier qualifying.  No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

- Jay Silver

You may have seen some northwest news coverage about a couple of decks that collapsed recently.  An interesting note is that May is considered "Deck Safety Month".  So what better time than now to take a look at your deck and make sure it's safe!

Many people know the importance of a good water seal for their deck.  But another good question is, "How is the structural quality of my deck?" 

In the last 6 years there have been over 350 reported injuries and 17 deaths as a result of deck failures.  You might be surprised at how many decks are built incorrectly, even by professionals.  On average a deck has a 10-15 year lifespan and should be properly maintained throughout this time.

I stumbled upon an article on Strongtie.com called, "5 Steps to a Safer, Stronger Deck" and thought I would share the info with you.

Click the link to read the article:  http://www.strongtie.com/safedeck/5steps.html

Hope this helps!

- Jay Silver