Heath Coker, Real Estate Broker

If you're planning to work at the Hollywood East studioson the East Coast, then you'll need comfortable real estate on Cape Cod! Here is an example of a peaceful and private spot that could become a haven while you're finishing your next movie at the Plymouth Rock Studios.

Expansive views of sunsets will make you think you're on the west coast! And the New England charm of this 8500 square foot residence will remind you of fun movies like Jack Nicholson and Diane Keaton in Something's Gotta Give. This pleasant getaway is under $7 million!

Work hard then relax easy! Places like this one will be on the top of the list when Hollywood East starts to crank! Get your place secured now, before everyone else finds out! Don't get left out of the East Coast Trend! You can tell other people, but get yours first.

Mercury is a naturally occurring element. It is used in many common items today. Proper disposal of mercury can help us all stay healthier. While mercury is an element, our bodies don't break it down so it can build up and slowly poison humans.

When you replace an old thermostat with a new, more efficient digital one, make sure that the mercury in the old thermostat goes to the proper recycler. When you replace the fluorescent bulbs in your home or office, whether the long tubes or the newer compact versions, make sure that the bulb goes to the proper recycler. Some batteries contain mercury, so put on your glasses and read the fine print before you just throw it in the trash can.

Here in Falmouth, MA, our local recycling center (the dump) has a special place for things that contain hazardous materials. There is a special place for fluorescent bulbs and other things. Proper disposal will help those who come after us. If each of us pays attention on an individual level, the whole of us will benefit.

Some other common items to check for mercury are: thermostats, old switches, old toys, electric organs, pesticides, old cleaning supplies, old laptop computer parts, older car security systems...

Happy listing and selling!

The days are getting shorter already! But today was a beautiful day on Cape Cod! There were leaf peepers here on the Cape, trying to see as much of New England as one trip would allow.

I had some Italians (real ones, not just from the North End) in yesterday asking about how to get to the Vineyard. And there was a broker in from Colorado checking out the Cape. Today, others came from off Cape just to enjoy the off season on Cape Cod.

One tourist told me that the Avis rental agent at Logan Airport said they are renting 1200 cars a day just at their locations. Thats a lot of leaf lookers!

50 Years ago did they have the same problems we have today?

Here's a 10 minute cartoon that was made 50 years ago. It is a fast history lesson that is just as applicable today as it was 50 years ago. Free enterprise, government involvement, freedom, and other things are addressed.

It tries to explain capitalism, success, and development. "The American System" is being hoodwinked by "Dr. Ism". When you drink his juice, you lose "The American System".

Could the Mortgage Companies do this?
Instead of foreclosing on a property, what if they re-write the loan in the following way:
1) keep the principle amount the same.
2) lower the rate to today's lower rate.
3) and amortize for 40 years.

Why would they?
1)A) principle of the note stays the same for the future payoff.
1)B) Keeping the principle the same means that the borrower needs to stay in the property until the market re-appreciates to the value of the principle to avoid selling at a loss.
This means more people will stay put, and at the same time, be able to pay for their house.
2) and 3) will make the payments easier to afford.

More Why would they?
Most loans are paid off by sale or refinance within the first 7 years of the loan.
By making the payments affordable, but keeping the principle amount as is, the loans will perform longer and mitigate much of the loss.

Good for the owner of the property (of course):
$100,000 @ 10% = $877/month on a 30 year amort.
$100,000 @ 6% = $550/month on a 40 year amort.
This allows a reduction of $327/month in payments, but keeps the principal to be paid, and extends the life of the debt.

Better than foreclosure for the Investor?
The future values are dramatically lower for the second loan, but ONLY if they go to final payment.
In reality, they will both be paid off by the seventh year based on average ownership statistics.
That would mean a "loss" of about $45,000* on paper versus an actual loss in the event of an actual foreclosure. *(the 7 year FV of the 10% note - FV 6% note = $194,871.71-$150,363.03 = +-$45,000)

A foreclosure loss may include:
- 12-24 months of no payment ($877 x 24 = -$21,000)
- legal fees (-$4000)
- broker fees (up to -$6000)
- loss of value of this property and other properties in the neighborhood (-$15,000 min)
- REO staff increases (-$10,000)
$21 + 4 + 6 + 15 + 10 = more than $56,000 in actual loss over 2 years

By re-writing the note, the Investor reduces their loss:
The "new note" performs over the next 84 months instead of costing actual money over the next 24 months.
84 x $550 = $46,200 that the note returns over the next 24 months as it performs versus $0 during 24 month foreclosure.
$46,200 - 45,000 = $1,200 positive OR Straight $56,000 loss over the next 2 years.

Other useful benefits include:
Property values do not decline as dramatically as when many foreclosures take over a market.
The loss numbers get much larger much faster when the face loan value increases.

Could they do this if they wanted to? Legally? Some have said there is no incentive for a bank to do this. I thought banks used math? What do you think? Would it work? Is it good for them? Is it good for real estate?