Elizabeth Nieves - Bilingual Raleigh - Durham North Carolina Real Estate Team

NO...the sky is NOT falling! The world, as we know it, is not coming to an end. Neither is the real estate industry coming to an end. In fact, things may be a whole lot better than the national media has led you to believe.

You've heard reports of the vast numbers of foreclosures across the country, the widespread drop in the number of home sales and the record-breaking decrease in property values. As a result, many potential buyers are terrified of purchasing a home now...for fear that it will be worth less than the purchase price on the day of closing. On the other hand, many home owners are reluctant to place their homes on the market because they have heard that it is a buyers' market...that they will have to ‘give their home away' if they want to sell.

If your mother was anything like my mother, she probably told you NOT to believe everything you hear. Your mother was right!

So...to whose voice should you be listening?

Who is telling the truth?

Who can you trust to give you accurate information and sound advice?

The answer is simple...TRUST the EXPERTS who KNOW the FACTS!

The following chart shows the TOTAL number of closed real estate sales for the Durham, North Carolina area between 2000 and 2007. In general, the graph shows a steady increase in total sales from 2001 to 2006...with a slight overall decrease by 50 sales in 2007.

This data was taken directly from the Triangle Multiple Listing Service. It represents ALL sales that were closed with a licensed REALTOR® who was also a member of the Triangle Multiple Listing Service. The data does not reflect 'For Sale By Owner' transactions.

In December, I wrote two other articles that address the challenges of our current market...as it relates to both BUYERS and SELLERS. I've included the links to these posts for those of you who have not read them.

REAL ESTATE MARKET IN TROUBLE??? It's just a matter of perspective!

Real Estate Market in Trouble? Part TWO for SELLERS!!!

Written and Posted by:

Elizabeth Nieves - Broker, REALTOR® -- The Elizabeth Nieves Realty Group @ Keller Williams (A Bilingual Real Estate Team serving Raleigh, Durham, Chapel Hill NC and surrounding areas.)

Search Raleigh, Durham, Chapel Hill Homes for Sale

With all the recent news about the number of foreclosures nationwide, many consumers are under the impression that there is an unlimited supply of foreclosed homes...priced at half of their market value. Although the rate of foreclosure is certainly on the rise throughout the country, the price and number of foreclosed properties vary greatly from state to state and city to city. Here is an example of foreclosed properties that are currently available in the Durham, NC area...along with a price comparison of non-foreclosed properties in the same area.

[3 BED/ 2 BATH - 2058 sq.ft. - .24 acre lot - Condition: GOOD]

This home is currently listed for $126,400. When the home was placed on the market in August of 2007, the price was $158,000. There are currently two other (non-foreclosure) homes for sale in the same neighborhood. (Please see chart below.)

Property Type: Residential Status: Active
Subject Property
#	MLS#	List Date	Address	Area/ Sub	Subdivision	Type/ Desc	LivSqFt	BR	FB	HB	GAR	YrBlt	LP	LP/ SF	DOM
1	948744	8/03/2007	3413 Kerrigan Court	117 - East Durham, Hwy 98/ B	Twin Lakes	DTACH/ 2STOR	2058	3	2	1	Parking - DW/Asphault	1987	$126,400	$61	168
2	973955	12/26/2007	3215 Venus	117 - East Durham, Hwy 98/ B	Twin Lakes	DTACH/ 2STOR	2028	3	2	1	Parking - DW/Concrete	1987	$138,000	$68	23
3	975878	1/08/2008	3114 Woodland Park Road	117 - East Durham, Hwy 98/ B	Twin Lakes	DTACH/ 2STOR	2100	4	2	1	2 Garage	1991	$173,000	$82	10
Average							2062	3	2	1			$145,800	$70	67
Number of Properties: 3

The next two homes are located within the same neighborhood: Landon Farms

[3 BED / 2.5 BATH - 1694 sq.ft. - Built: 2004 - Condition: GOOD]

This home is currently listed for $129,900. When the home was placed on the market in November of 2007, the price was $137,900. There are currently eight other non-foreclosure homes and one additional foreclosure for sale in the same neighborhood. (See the next photo and description.)

[3 BED / 2 BATH - 1660 sq.ft. - Built: 2002 - Condition: GOOD]

This home is currently listed for $144,900. When the home was placed on the market in August of 2007, the price was $164,900. (See the chart below for both properties.)

Property Type: Residential Status: Active
Subject Property
#	MLS#	List Date	Address	Area/ Sub	Subdivision	Type/ Desc	LivSqFt	BR	FB	HB	GAR	YrBlt	LP	LP/ SF	DOM
1	967164	11/09/2007	2017 Spring Creek Drive	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 2STOR	1694	3	2	1	2 Garage, Parking - Attached, Parking - DW/Concrete, Parking - Entry/Front	2004	$129,900	$77	70
2	971453	12/06/2007	2116 Lime	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 1STOR	1132	3	2	0	Parking - DW/Concrete	2004	$129,900	$115	43
3	949657	8/09/2007	2016 Lime	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 3STOR	1800	4	3	1	Parking - DW/Concrete	2005	$139,900	$78	162
4	973330	12/17/2007	1914 Landon Farms	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 1STOR	1660	3	2	0	2 Garage	2002	$144,900	$87	32
5	949272	8/07/2007	2036 Spring Creek Drive	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 2STOR	1508	3	2	1	2 Garage, Parking - Attached, Parking - Entry/Front	2007	$163,845	$109	164
6	972003	12/09/2007	1910 Landon Farms Lane	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 2STOR	1742	3	2	1	Parking - DW/Concrete	2003	$165,000	$95	40
7	970696	12/02/2007	2034 Spring Creek Drive	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 2STOR	2185	3	2	1	2 Garage, Parking - Attached, Parking - Entry/Front	2007	$179,742	$82	47
8	973319	12/10/2007	2024 Spring Creek Drive	117 - East Durham, Hwy 98/ C	Landon Farms	SITEB/ 2STOR	2088	5	2	1	Parking - DW/Concrete	2004	$179,900	$86	39
9	954437	9/02/2007	2055 Spring Creek Drive	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 2STOR	2471	4	2	1	2 Garage, Parking - Attached, Parking - Entry/Front	2006	$183,779	$74	138
10	930111	5/05/2007	2046 Spring Creek Drive	117 - East Durham, Hwy 98/ C	Landon Farms	DTACH/ 2STOR	2185	3	2	1	2 Garage, Parking - Attached	2007	$191,521	$88	258
Average							1847	3	2	1			$160,838	$89	99
Number of Properties: 10

If you would like a complete list of available foreclosures in Durham and surrounding areas, please email me: Elizabeth@ElizabethNieves.com.

Written and Posted by:

Elizabeth Nieves - Broker, REALTOR® -- The Elizabeth Nieves Realty Group @ Keller Williams (A Bilingual Real Estate Team serving Raleigh, Durham, Chapel Hill NC and surrounding areas.)

Search Raleigh, Durham, Chapel Hill Homes for Sale

Today, after a five year battle with cancer, Lista Yarbrough went home to be with the Lord.

(July 1, 1973 - January 17, 2008)

As the Vice President of the Durham Regional Association of REALTORS® and a top-producing agent with Realty Executives Triangle, Lista was well-known and well-loved by her peers in the real estate business. Since her diagnosis of cancer in 2003, Lista has fought couragiously...openly sharing her story in order to inspire others to fight also. Her death leaves a void that only her contagious smile and loving heart could ever fill.

When I remember Lista, I think of the words 'selfless giving'. Despite her difficult, five year struggle with cancer, Lista always found a way to give of herself to others. I personally believe that she found her strength to keep fighting by giving of herself. She was an amazing woman and an example for all of us to follow.

Since 2003, Lista has participated in the annual Triangle Susan G. Komen Race for the Cure. Just this past June, she ran the whole race without stopping...even though she was still in recovery from chemotherapy. Her team, Lace up for Lista, raised over $6000 for breast cancer research. In 2003, she also organized volunteers to provide care packages to patients beginning chemotherapy. The Durham Regional Association of REALTORS® honored her with their Service Award in 2004.

Lista, we'll all miss you very much...but we'll never forget the example you set for us! You showed us the real meaning of life...living for others and not for yourself. It was my honor and privilege to be your friend!

Flowers are being accepted, or memorials may be made in Lista's name to the Susan G. Komen Race for the Cure, P.O. Box 71922, Durham, NC 27722. The donations will be applied to Lista's team for this year's race.

Written and Posted by:

Elizabeth Nieves - Broker, REALTOR® -- The Elizabeth Nieves Realty Group @ Keller Williams (A Bilingual Real Estate Team serving Raleigh, Durham, Chapel Hill NC and surrounding areas.)

Search Raleigh, Durham, Chapel Hill Homes for Sale

I had only been a REALTOR® for about a month when Guadalupe walked into my office one Monday afternoon. As I looked up and saw the tiny woman standing in the doorway of my office, I knew that she was carrying a heavy burden on her shoulders. She shyly asked me if I spoke Spanish, and when I said "Claro que si!" (Of course!), her face lit up. I asked her to have a seat and explain how I could be of service to her.

Three hours later, she was still in my office. Through her tears, she shared her story with me...a story that would have been difficult for anyone to believe. Yet, as she moved from one part of the story to the next, she would reach into her bag and pull out a document to support what she was saying...as if she expected disbelief.

Guadalupe and her husband had both worked two jobs each, for ten years, in order to purchase their first home (pictured at right)...a small 3 bedroom home, in a good school district, that they bought for $100,000. For five years, they lived in that home, with their two young children...always paying on time and making extra payments whenever they could. Guadalupe told me that she did not mind working hard...that often as she worked...she would daydream of the beautiful home she would be able to afford 'one day'.

According to Guadalupe, she and her husband had been contemplating selling their home and buying a larger home for months. One day...as they walked out of the local Hispanic Community Center...they were approached by a well-dressed man and woman. The couple was passing out flyers in Spanish...advertising their real estate services. Guadalupe and her husband assumed that...since they were passing out flyers outside of the Community Center...they must have had permission to do so. She told me, "Elizabeth, they looked so professional and nice."

She further explained that the gentleman did not speak Spanish, but the woman (his girlfriend) could speak a little Spanish. She said that they came to her home with a bunch of papers and told them where to sign...that she and her husband had just trusted him. When Mr. REALTOR® told them that their home was worth $130,000... they were thrilled. At that point, they owed about $90,000 on their home.

After several weeks, Mr. REALTOR® (and his girlfriend) returned to their home with more papers. He told them that he had found a buyer for their home...that it was time to "go find their new home." Guadalupe told me that it was "like a dream"...that she could not believe how easy it had been.

Even though they were incredibly excited, they explained to Mr. REALTOR® that they could not afford a payment over $1200 per month. He immediately took them out to look at beautiful, new homes. They chose the one that they loved, and then they signed more papers. (At NO time did Mr. REALTOR® actually explain what the papers said. He told them that he was working for them...that he would work everything out.)

Over the next month, Mr. REALTOR® visited their home at least once a week...asking them for one thing after another...bringing them document after document to sign. He explained to them that he was taking care of their loan..that he was handling everything on their behalf. He told them that their loan was very difficult, but that he knew exactly what to do. Without any reserve, they trusted him.

When a month had passed, Mr. REALTOR® told them that they needed to get a $30,000 loan on their existing home and open a special account...to show the bank (who was doing the mortgage on the new home) that they had enough money to buy the new home. He told them that the loan would be paid back as soon as their home sold. Again...he assured them that he was working for them...that it was the only way to get their new home. He brought more papers, and they signed as he requested.

About a month later...Mr. REALTOR® called and announced that it was time to go sign the final papers...that their loan had been approved. He asked them to meet him at the new home...that it would only take a few minutes. When they arrived, Mr. REALTOR® had yet another stack of papers. Without an attorney...without any closing agent...without any explanation...he put each paper in front of them and told them where to sign. They did exactly as he asked...until they came upon a document that indicated a $1758/month payment.

When Guadalupe and her husband reminded Mr. REALTOR® that he had promised them that the payment would not exceed $1200 a month, he told them that he had no control over the payment...that the bank had charged more because their credit was not good enough. They politely apologized and told Mr. REALTOR® that they could not continue with the purchase...that they could not afford $1758 a month. Mr. REALTOR® then became very angry with them and told them that they had no choice...that if they walked out...the builder would take them to court...that they would be forced to buy the home anyway. Reluctantly...they finished signing the papers. The next day, they moved into their new home. With tears streaming down her cheeks, Guadalupe told me, "Elizabeth...I never really felt like it was my house, because I had a 'feeling' that we would lose it one day."

[Side note: When their first payment notice arrived, they learned that their total mortgage payment, PITI, was actually $2100...NOT $1758...CERTAINLY NOT $1200! They also continued to receive payment requests for the $30,000 loan that was supposed to have been paid at closing.]

About five months after moving into the home of her dreams, Guadalupe received a letter from her previous mortgage company...stating that their mortgage payment was overdue on the home they had sold. She called the mortgage company and explained that they had sold the home and bought a new home. The mortgage company told her that the mortgage was still in their name. Immediately, she called Mr. REALTOR® to ask him to help her explain the situation to the mortgage company. He did not return her call.

Out of sheer curiosity, she drove to her previous home. The new owners were home, and she decided to talk to them about the strange letter from the mortgage company. (They were also Hispanic, so she was able to communicate well with them.) What they told her left her stunned and confused. They explained to her that they were falling behind on their $2500 A MONTH PAYMENT to MR. REALTOR®! They told her that they had met the agent at the Hispanic Community Center (sound familiar?)...that he was offering to help families (who could not qualify for a mortgage) to buy homes. Prior to taking possession of the home, they claimed to have paid the agent a deposit of $5750 (in cash)...and paid $2500 per month afterwards. ALL of their payments were made directly to Mr.REALTOR®...in cash.

What I am going to tell you now will leave you shocked and speechless...as it did me. After hiring an attorney to look at her documentation, Guadalupe learned that:

1. Their previous home had never been sold. They had signed a quit-claim deed...naming Mr. REALTOR® as the new owner. (The copy they signed was blank.)
2. The original mortgage was still in their name...as was the $30,000 second mortgage.
3. With the $30,000 from the second mortgage, Mr. REALTOR® had opened an account under the name of Guadalupe's husband. He had been making the monthly mortgage payments from that account...until he had depleted the funds.
4. Mr. REALTOR® had entered into a verbal lease-to-own agreement with the Hispanic family who was living in the home. He agreed to sell them the home for $135,000. They had paid $5750 upfront and made $2500 cash payments monthly...ALL of which he had pocketed.
5. The mortgage company was initiating foreclosure on the previous home.

Furthermore:

1. The Hispanic family moved out when they could no longer make the payments. Therefore, Guadalupe had two mortgage payments...but only one home. (Their previous home legally belonged to Mr.REALTOR®.)
2. Mr. REALTOR® never returned a single phone call to Guadalupe, and he had moved his office.
3. The attorney, who Guadalupe hired to look at the documents, wanted $5000 upfront to even take their case. (They did not have $500...much less $5000.)
4. Guadalupe had nowhere to turn for help, and she felt helpless and foolish.

IF you are angry...REALLY, REALLY ANGRY right now...then you have some idea how I felt when I heard her story. I was FURIOUS!!! How could anyone...ESPECIALLY A REALTOR®...do this to an innocent family? More importantly, why had no one helped this family? She had asked everyone for help...including the agent who had represented them when they purchased their first home. That agent told her, "You should have called me when you wanted to sell, instead of hiring this other guy. What happened to you is your own fault. Call me if you want to buy or sell...otherwise...I cannot help you."

IMMEDIATELY, I called The N.C. Real Estate Commission. I explained what Guadalupe had relayed to me, and I asked them to send an investigator as soon as possible. A few days later, an investigator met with Guadalupe in my office. I translated as Guadalupe told him her whole story again. When she was finished, the investigator told us that he was committed to making sure that Mr. REALTOR® never practiced real estate in N.C. again.

The investigator kept his promise and did build a strong case against Mr. REALTOR®. Following up on every aspect of Guadalupe's story, the investigator was able to find five additional, similar cases involving Mr. REALTOR®. The Real Estate Commission revoked the agent's license and recommended that he be tried in federal court. They forced him to sign the home back over to Guadalupe and her husband and pay them $7000 in damages.

Most ironically, while Mr. EX-REALTOR® was awaiting the outcome of his federal charges, he became a licensed loan officer. He also married his girlfriend, and she became a REALTOR®. Within months, they were working as a team and had opened their own real estate company...with a booth in the middle of a predominantly Hispanic shopping mall.

Guadalupe's 'feeling' that she would lose her new home 'one day' came true after just eight months. Fortunately, they were able to sell the home and break even. Unfortunately, they lost their previous home. Although they won the home back in the legal battle, it was too late to stop the foreclosure process. They were also forced to file bankruptcy, as they had no way to pay back the $30,000 loan. In the end, they had no home. Worst than that, they had no hope.

It has been years since I last spoke with Guadalupe. I tried to call a few times, but her phone was disconnected. Even if I never speak with Guadalupe again, she will always be a part of my life. Her 'story' drives me everyday to 'even the playing field' for the Hispanic families in our community...for ALL of my clients. Every time I am blessed with the opportunity to help a young family achieve their dream of home ownership, I know that I've prevented one more family from being victimized by a greedy and heartless predator. THIS is my 'WHY'!

En Español:

Deshonesto REALTOR®…Se le remueve su Licencia de Bienes Raíces... Encuentra nueva carrera como Prestamista! (Si esto no te molesta… NADA LO HARA!)

Written and Posted by:

Elizabeth Nieves - Broker, REALTOR® -- The Elizabeth Nieves Realty Group @ Keller Williams (A Bilingual Real Estate Team serving Raleigh, Durham, Chapel Hill, North Carolina and surrounding areas.)

Visit our website at www.ElizabethNieves.com