Wednesday, June 24, 2009
Protecting Tenants at Foreclosure
Dear Sue,
I have been renting a beautiful house in south Auburn for the last three years.
My landlord, who lives in the Bay Area, bought the house to live in when he retires. He assured me that I could rent it for at least five years.
Yesterday, I was reading the notices in the local newspaper and discovered that my home is in foreclosure!
I have until Dec 30th of this year remaining on my lease.
When the bank takes the home back will I be forced to leave? What about the contract I have with my landlord? I have kept my part of the bargain. I have been on time with my rent and I keep the place up.
Worried Walt
Dear Walt,
Dear Walt,
Tenants across the nation face the threat of eviction when the homes that they have been renting in good faith go into foreclosure.
According to the Legal Hotline at the California Association of Realtors, President Obama recently signed into law the, “Protecting Tenants at Foreclosure Act of 2009.”
All tenants including those under Section 8 must now get a 90-day written notice prior to eviction due to foreclosure. In addition, tenants that have leases can continue to live in their homes until the end of the term of their lease.
The National Housing Law Project (NHLP) will help tenants exercise their rights under this new law.
Under the new law, tenants with leases can occupy the property until the end of the lease term with one exception. If the new purchaser is going to occupy the property as their primary residence, the lease can be terminated with 90 days written notice.
In today’s market, a fairly high percentage of the buyers are investors. If an investor buys the property where you are renting, he will have to honor your lease and you will be able to stay in your home.
The only scenario where you will have to leave before the term of your lease is up is if the new buyer plans to reside in the property, in which case you will have to vacate after receiving a 90 days notice.
Many lenders are offering tenants cash to buy their leases out early. This is known as “Cash for Keys.” You can be proactive and initiate the negotiation. It will give you more control over your destiny.
This law became effective in May of this year and it expires at the end of 2012. This bill brings long overdue relief for the least blameless group in the housing foreclosure crisis, tenants.
Knowing your rights as a tenant is a matter of Good Home $$s and Sense.
To visit my company's website for more real estate information including new laws and property listings visit:
HomeTown Realtors
I have been renting a beautiful house in south Auburn for the last three years.
My landlord, who lives in the Bay Area, bought the house to live in when he retires. He assured me that I could rent it for at least five years.
Yesterday, I was reading the notices in the local newspaper and discovered that my home is in foreclosure!
I have until Dec 30th of this year remaining on my lease.
When the bank takes the home back will I be forced to leave? What about the contract I have with my landlord? I have kept my part of the bargain. I have been on time with my rent and I keep the place up.
Worried Walt
Dear Walt,
Dear Walt,
Tenants across the nation face the threat of eviction when the homes that they have been renting in good faith go into foreclosure.
According to the Legal Hotline at the California Association of Realtors, President Obama recently signed into law the, “Protecting Tenants at Foreclosure Act of 2009.”
All tenants including those under Section 8 must now get a 90-day written notice prior to eviction due to foreclosure. In addition, tenants that have leases can continue to live in their homes until the end of the term of their lease.
The National Housing Law Project (NHLP) will help tenants exercise their rights under this new law.
Under the new law, tenants with leases can occupy the property until the end of the lease term with one exception. If the new purchaser is going to occupy the property as their primary residence, the lease can be terminated with 90 days written notice.
In today’s market, a fairly high percentage of the buyers are investors. If an investor buys the property where you are renting, he will have to honor your lease and you will be able to stay in your home.
The only scenario where you will have to leave before the term of your lease is up is if the new buyer plans to reside in the property, in which case you will have to vacate after receiving a 90 days notice.
Many lenders are offering tenants cash to buy their leases out early. This is known as “Cash for Keys.” You can be proactive and initiate the negotiation. It will give you more control over your destiny.
This law became effective in May of this year and it expires at the end of 2012. This bill brings long overdue relief for the least blameless group in the housing foreclosure crisis, tenants.
Knowing your rights as a tenant is a matter of Good Home $$s and Sense.
To visit my company's website for more real estate information including new laws and property listings visit:
HomeTown Realtors
Labels: California Association of Realtors, Cash for Keys, Protecting Tenants at Foreclosure Act of 2009
Thursday, June 18, 2009
Loan Too Slow!
Dear Sue,
Earlier this year, when interest rates were at an all-time low, we decided to refinance our existing 30-year loan on our primary residence.
We applied for the loan with the bank we have been dealing with for several years and they explained that the loan should be “no problem.”
We have supplied them with our tax forms, all our investment income, everything they have asked for. Yet, about every week, they ask for some other form—the latest, our Social Security income records.
So it goes, on and on for nearly two months and they say it will still be another two or three weeks before we have the loan, explaining that the bank has new owners and they are very careful with all their paperwork, etc.
Is this two or three-month period to get a refinance loan normal or is the bank simply stalling, as interest rates are now continuing to go up? Should we cancel and start over or just go along with their snail-pace approval process?
Very Concerned
Dear Concerned
I spoke with another borrower, Donna London McClaren. She is in the process of refinancing her home with Wells Fargo. She is in the third month and finding the process to be very frustrating. She said the lender calls her a couple of times a week asking for something new. She feels like she is forced to hang in there with Wells Fargo because they locked in her rate at 4.75%, saving her over $200 a month on her loan payment.
I shared your and Donna’s stories with Ryan Rivera, Broker with Goldmine Financial. Ryan explained that when banks make loans they eventually sell them on Wall Street as mortgage backed securities.
As a backlash to the recent laxity in qualifying borrowers, investors buying those mortgage-backed securities require that the buyer’s qualifications are fully documented. The loan package must be in perfect order. They don’t want any missing financial documents. It doesn’t matter how strong the borrower is or how much is being borrowed, all financial documents must be in the file.
Purchase loans always have priority over refinance loans. Purchases contractually stipulate certain time frames for the escrow period. Where the refinance has an open-ended time frame.
The huge number of loan applications that have been submitted because of the low interest rates has swamped the lenders.
“The typical loan should take between 30 and 45 days,” Ryan says. “A 90 day turn around is a very long time. I have never had a loan take that long.”
Ryan recommends that you contact the lender and ask where they are in the process. Have loan documents been ordered? Is the interest rate locked in? What is the interest rate? When is the lock due to expire? What is it costing you to get that rate?
Ask for a good faith estimate and have it reviewed by your financial planner. Verify that there are no hidden costs and that you are being offered a competitive rate. If you are not happy, don’t be afraid to negotiate. Nothing ventured, nothing gained.
While longer processing times seem to be the name of the game, you, the borrower, can be proactive by being fully prepared with all of your financial documents when applying for the loan. This doesn’t mean that the lender won’t ask for something unexpected, but it will help to shorten the process.
Ryan suggests bringing in all of the following:
1) 2 Years tax returns
2) Pay stubs
3) Current bank statements
4) Current mortgage statements
5) Property insurance agent’s name and number
6) Landlord’s name and number
7) Copy of drivers license and social security card
A tip is to keep a current document folder handy. When you receive your current bank statements or pay stubs, just throw them in your folder. Ryan guarantees that your lender will be asking for them.
You can help shorten the loan process by being proactive and prepared. It is a matter of Good Home $$s and Sense.
Earlier this year, when interest rates were at an all-time low, we decided to refinance our existing 30-year loan on our primary residence.
We applied for the loan with the bank we have been dealing with for several years and they explained that the loan should be “no problem.”
We have supplied them with our tax forms, all our investment income, everything they have asked for. Yet, about every week, they ask for some other form—the latest, our Social Security income records.
So it goes, on and on for nearly two months and they say it will still be another two or three weeks before we have the loan, explaining that the bank has new owners and they are very careful with all their paperwork, etc.
Is this two or three-month period to get a refinance loan normal or is the bank simply stalling, as interest rates are now continuing to go up? Should we cancel and start over or just go along with their snail-pace approval process?
Very Concerned
Dear Concerned
I spoke with another borrower, Donna London McClaren. She is in the process of refinancing her home with Wells Fargo. She is in the third month and finding the process to be very frustrating. She said the lender calls her a couple of times a week asking for something new. She feels like she is forced to hang in there with Wells Fargo because they locked in her rate at 4.75%, saving her over $200 a month on her loan payment.
I shared your and Donna’s stories with Ryan Rivera, Broker with Goldmine Financial. Ryan explained that when banks make loans they eventually sell them on Wall Street as mortgage backed securities.
As a backlash to the recent laxity in qualifying borrowers, investors buying those mortgage-backed securities require that the buyer’s qualifications are fully documented. The loan package must be in perfect order. They don’t want any missing financial documents. It doesn’t matter how strong the borrower is or how much is being borrowed, all financial documents must be in the file.
Purchase loans always have priority over refinance loans. Purchases contractually stipulate certain time frames for the escrow period. Where the refinance has an open-ended time frame.
The huge number of loan applications that have been submitted because of the low interest rates has swamped the lenders.
“The typical loan should take between 30 and 45 days,” Ryan says. “A 90 day turn around is a very long time. I have never had a loan take that long.”
Ryan recommends that you contact the lender and ask where they are in the process. Have loan documents been ordered? Is the interest rate locked in? What is the interest rate? When is the lock due to expire? What is it costing you to get that rate?
Ask for a good faith estimate and have it reviewed by your financial planner. Verify that there are no hidden costs and that you are being offered a competitive rate. If you are not happy, don’t be afraid to negotiate. Nothing ventured, nothing gained.
While longer processing times seem to be the name of the game, you, the borrower, can be proactive by being fully prepared with all of your financial documents when applying for the loan. This doesn’t mean that the lender won’t ask for something unexpected, but it will help to shorten the process.
Ryan suggests bringing in all of the following:
1) 2 Years tax returns
2) Pay stubs
3) Current bank statements
4) Current mortgage statements
5) Property insurance agent’s name and number
6) Landlord’s name and number
7) Copy of drivers license and social security card
A tip is to keep a current document folder handy. When you receive your current bank statements or pay stubs, just throw them in your folder. Ryan guarantees that your lender will be asking for them.
You can help shorten the loan process by being proactive and prepared. It is a matter of Good Home $$s and Sense.
Tuesday, June 9, 2009
Well, Well, Well!
Since I wrote last week’s article I have received some more questions regarding wells. Here is a sampling. Please email me if I have not answered your question.
Do you need a permit to drill a well?
Yes! You cannot drill, modify, repair or abandon a well without first obtaining a permit.
The permit can only be issued to a person licensed by the state. Any person who constructs or modifies a well must have an active C-57 State Contractors License. The permit is good for one year.
I have heard some horror stories about well drillers who take short cuts by not installing annular seals that prevent surface water from contaminating the well. How do I know if a well has an annular seal?
Today’s ordinances require well contractors to include plans and specifications for installing the annular seal. An official from environmental health visits the site at the time the well is sealed.
The well driller is required to notify the County a minimum of two hours before sealing the well. The contractor must submit a valid permit number, date and specific time of well sealing, location of well sealing and the permittee’s name.
If a well doesn’t have a seal a well contractor can add one. I would recommend calling a well installer and inquire about the details of the procedure. Don’t forget that a permit is required.
It seems rather strange to me that you would be drinking water from the same ground where the septic tank is. How do you keep the septic system from contaminating the well?
When applying for the well permit, a site plan must be attached to the application. The site plan includes the well location, and all features that may potentially contaminate the well, including onsite sewage disposal systems, sewer lines and animal feed lots. The site plan must also include property lines within 150 feet of the well site.
Your environmental health professional will protect you by not allowing your well to be drilled in an area where it might become contaminated.
Remember the Environmental Health Department’s duty is to protect the health and safety of the general public.
Is it true that a well driller is required to file his well report with the State? If so, is the information public?
Yes. The report must be filed within 90 days of completion. No, the report is NOT public. It is considered confidential unless written authorization has been given by the owner of the well. However, the well reports are made available to state agencies for making studies.
I know that it is difficult to find water in the Foothills. I have heard that people “witch” to find the best location for a well. This sounds at the very least, very unscientific, not to mention supernatural. Is this “witching” thing for real? Does it work?
Yes. It works! I have done it myself and I have seen it done successfully many times over the years. It is also know as “dowsing.”
Before drilling my current well, my drilling contractor gave me two L-shaped metal rods. I held one in each hand straight out in front of me. As I walked through the field, the rods suddenly crossed over each other and pointed downward by some force other than my own.
The contractor and one other person independently dowsed the same area where he subsequently drilled a well that had a yield of 17GPM’s. (Gallons per minute). That’s a lot of water!
I once owned a parcel of land in a region that was known for being a spotty water area. Existing wells in the surrounding area had low yields. It was recommended by my well driller that I hire a geologist to do a fly over and look for signs of fractures beneath the surface where water was likely to be flowing. The geologist spotted various “good well” locations. My well driller chose the best site and drilled a well that produced 60 gallons per minute. I guess that makes me scientific as well as supernatural having used both methods.
Learning about wells before buying country property can be a matter of good Home $$’s and Sense.
Do you need a permit to drill a well?
Yes! You cannot drill, modify, repair or abandon a well without first obtaining a permit.
The permit can only be issued to a person licensed by the state. Any person who constructs or modifies a well must have an active C-57 State Contractors License. The permit is good for one year.
I have heard some horror stories about well drillers who take short cuts by not installing annular seals that prevent surface water from contaminating the well. How do I know if a well has an annular seal?
Today’s ordinances require well contractors to include plans and specifications for installing the annular seal. An official from environmental health visits the site at the time the well is sealed.
The well driller is required to notify the County a minimum of two hours before sealing the well. The contractor must submit a valid permit number, date and specific time of well sealing, location of well sealing and the permittee’s name.
If a well doesn’t have a seal a well contractor can add one. I would recommend calling a well installer and inquire about the details of the procedure. Don’t forget that a permit is required.
It seems rather strange to me that you would be drinking water from the same ground where the septic tank is. How do you keep the septic system from contaminating the well?
When applying for the well permit, a site plan must be attached to the application. The site plan includes the well location, and all features that may potentially contaminate the well, including onsite sewage disposal systems, sewer lines and animal feed lots. The site plan must also include property lines within 150 feet of the well site.
Your environmental health professional will protect you by not allowing your well to be drilled in an area where it might become contaminated.
Remember the Environmental Health Department’s duty is to protect the health and safety of the general public.
Is it true that a well driller is required to file his well report with the State? If so, is the information public?
Yes. The report must be filed within 90 days of completion. No, the report is NOT public. It is considered confidential unless written authorization has been given by the owner of the well. However, the well reports are made available to state agencies for making studies.
I know that it is difficult to find water in the Foothills. I have heard that people “witch” to find the best location for a well. This sounds at the very least, very unscientific, not to mention supernatural. Is this “witching” thing for real? Does it work?
Yes. It works! I have done it myself and I have seen it done successfully many times over the years. It is also know as “dowsing.”
Before drilling my current well, my drilling contractor gave me two L-shaped metal rods. I held one in each hand straight out in front of me. As I walked through the field, the rods suddenly crossed over each other and pointed downward by some force other than my own.
The contractor and one other person independently dowsed the same area where he subsequently drilled a well that had a yield of 17GPM’s. (Gallons per minute). That’s a lot of water!
I once owned a parcel of land in a region that was known for being a spotty water area. Existing wells in the surrounding area had low yields. It was recommended by my well driller that I hire a geologist to do a fly over and look for signs of fractures beneath the surface where water was likely to be flowing. The geologist spotted various “good well” locations. My well driller chose the best site and drilled a well that produced 60 gallons per minute. I guess that makes me scientific as well as supernatural having used both methods.
Learning about wells before buying country property can be a matter of good Home $$’s and Sense.
Labels: annular seal, well drilling, wells
Thursday, June 4, 2009
If You Live in the Country, Know about Wells
Dear Sue,
I am looking for a house in the country. I know that most country property has drinking water from a well.
I have heard that wells can produce the best water that you can drink or in some cases the worst.
How do you make sure the quality of water on a property is good? Anything you can tell me will be helpful.
Thirsty Thelma
Dear Thelma,
It’s very important for everyone to understand that ground water comes from the “hydrologic cycle”.
The description of the hydrologic cycle usually begins with evaporation from the oceans. However it must be kept in mind that it is a cycle with no beginning or end.
The evaporation from the oceans and other large bodies of water drifts across the earth’s surface in the form of clouds. The clouds create rain, snow, hail or droplets of fog. The rain and melting snow runs on the earth’s surface as creeks and rivers towards the oceans only to repeat the cycle. Much of the water is absorbed into the land.
The absorbed water is known as ground water. Wells are drilled into the earth’s surface as a means of tapping into that water.
As an owner of country property where well water is used for domestic purposes, one becomes their own water manager.
As water manager one has a responsibility to prevent pollution by adhering to minimum standards set by California Water Resources Board when constructing, maintaining and destroying a well. In fact, the Department of Water Resources suggests that well owners keep a maintenance and repair log. Even though the water quality is tested at the time of drilling it is smart to test the water quality on a periodic basis and log the results.
I should know. I was so busy cleaning annoying mineral deposits from my dishes and bathroom fixtures it was suggested that I consider getting another hobby. Little did I know that the residue was indicative of a serious water issue.
I called Stan Rafter from Service Engineering. He did a mineral and bacterial test on a well that I haven’t tested for 12 years. He was reluctant to report that I had been drinking from a contaminated well. It tested for total coli form and e.coli. He also reported that the water was very hard (too many minerals).
Fortunately for me it was an easy and relatively inexpensive fix. He poured bleach down the well and ran chlorinated water through the entire system. It worked. I no longer have to drink a morning cup of “Tea.coli.” He also installed a water softening system with amazing results. I am now looking for a new hobby.
Stan explained that most people don’t think about bacteria and other possible water issues as long as the water is being delivered into their home. It’s when the water stops flowing that he gets the frantic calls!
While making necessary repairs Stan discovers through observation and testing just how aggressive the water is and what kind of conditioning is required.
“Acidic water is very aggressive. It attacks metals. Blue green stains on your fixtures are an indication of copper pipes being broken down by the water.” Stan explained.
“There is an easy and inexpensive remedy. A typical system can cost between $1500-2000.00. Sometimes more depending on how aggressive the water is.” Stan said.
If you haven’t checked your well in awhile call Stan. He will do a general mineral test and well consultation for free! It can be a matter of good Home Dollars and Sense.
I am looking for a house in the country. I know that most country property has drinking water from a well.
I have heard that wells can produce the best water that you can drink or in some cases the worst.
How do you make sure the quality of water on a property is good? Anything you can tell me will be helpful.
Thirsty Thelma
Dear Thelma,
It’s very important for everyone to understand that ground water comes from the “hydrologic cycle”.
The description of the hydrologic cycle usually begins with evaporation from the oceans. However it must be kept in mind that it is a cycle with no beginning or end.
The evaporation from the oceans and other large bodies of water drifts across the earth’s surface in the form of clouds. The clouds create rain, snow, hail or droplets of fog. The rain and melting snow runs on the earth’s surface as creeks and rivers towards the oceans only to repeat the cycle. Much of the water is absorbed into the land.
The absorbed water is known as ground water. Wells are drilled into the earth’s surface as a means of tapping into that water.
As an owner of country property where well water is used for domestic purposes, one becomes their own water manager.
As water manager one has a responsibility to prevent pollution by adhering to minimum standards set by California Water Resources Board when constructing, maintaining and destroying a well. In fact, the Department of Water Resources suggests that well owners keep a maintenance and repair log. Even though the water quality is tested at the time of drilling it is smart to test the water quality on a periodic basis and log the results.
I should know. I was so busy cleaning annoying mineral deposits from my dishes and bathroom fixtures it was suggested that I consider getting another hobby. Little did I know that the residue was indicative of a serious water issue.
I called Stan Rafter from Service Engineering. He did a mineral and bacterial test on a well that I haven’t tested for 12 years. He was reluctant to report that I had been drinking from a contaminated well. It tested for total coli form and e.coli. He also reported that the water was very hard (too many minerals).
Fortunately for me it was an easy and relatively inexpensive fix. He poured bleach down the well and ran chlorinated water through the entire system. It worked. I no longer have to drink a morning cup of “Tea.coli.” He also installed a water softening system with amazing results. I am now looking for a new hobby.
Stan explained that most people don’t think about bacteria and other possible water issues as long as the water is being delivered into their home. It’s when the water stops flowing that he gets the frantic calls!
While making necessary repairs Stan discovers through observation and testing just how aggressive the water is and what kind of conditioning is required.
“Acidic water is very aggressive. It attacks metals. Blue green stains on your fixtures are an indication of copper pipes being broken down by the water.” Stan explained.
“There is an easy and inexpensive remedy. A typical system can cost between $1500-2000.00. Sometimes more depending on how aggressive the water is.” Stan said.
If you haven’t checked your well in awhile call Stan. He will do a general mineral test and well consultation for free! It can be a matter of good Home Dollars and Sense.
Labels: contaminated well, water quality, water resources, well
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