Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor

From time-to-time I comment on another blogger's post, and then I think; mmmmm, that's really a good comment, Carla. Maybe you should post your blog, and cash in on some points.

But, I'm a little lazy of late, and would rather read other bloggers blogs, comment, and call it a day.

Today, however, I read a blog post (http://activerain.com/blogsview/981507/Is-That-Property-You-Have-Listed-Eligible-To-Be-Sold) and thought about the clouds on title, and a "what if" scenario played out.

What if: the sellers, with good intention, updated their home to get ready for a good, quick, clean sale. Then things happened. They couldn't pay on the updates. The contractor, in my state of Oregon, can file a lien. They have the right to file a lien up to 180 days AFTER the work ceased, or they weren't paid.

Hmmmm . . . What if: the house sales, title is clear, and then the new owners get a Notice of Lien?

Another question for listings agents to ask in their pre-list consult:

Have you had any work performed by a licensed contractor in the past 6 months? If yes, then ask: Did you PAY THEM!

In Oregon contractors can file liens on the property AFTER 180 days of the non-payment, or when worked ceased. Contractor's liens, mechanic liens . . .

180 days is a long time to NOT know something. A house could be sold in that amout of time, and title would have shown an unencumbered title -- but then . . . oopsie!

------------------------------------------------------------------------------

"A construction lien is a claim upon property for money owed to a contractor, material supplier or anyone who supplied labor or materials for improvements to the property.

If your contractor isn't paid, or if your contractor does not pay subcontractors, employees, rental equipment or material suppliers, or others who are owed money for work on your property, they may lien your property for payment.

It is in your best interest to verify that all bills are paid, even if you pay your contractor in full."

http://www.oregon.gov/CCB/consumer_help.shtml#What_is_a_construction_lien_

A SPECIAL CONSUMER PDF from the CCB State of Oregon: https://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/req-cn.pdf

------------------------------------------------------------------------------

Hmmm . . . even if you pay YOUR contractor IN FULL . . . your contractor may NOT be paying the SUBS! The subs have a right to lien!

Agents . . . look around the property while showing it. New windows? Extensive upates? Ask questions (in writing), and try to do as much due diligence as possible for your clients. The WHO, WHAT, WHERE, WHEN are good questions to ask. Who did the updates? What were the updates? Where were updates done? And all importantly, WHEN?

DISCLAIMER: I am a real estate agent -- NOT a Title Officer. My real estate license allows me to consult, and while NOT practicing law, licensees are allowed to DISCUSS legal specifics and give advice. That's why real estate agents ARE important to the overall home purchase!

That being said: Liens are attachments that run with the title of the property, NOT with the seller/owner (in most states). Encumberances are also called "clouds" on the title. Check your states' information about liens, and/or talk to your title/escrow people to find out how they work.

ASK if a title insurance policy will cover a lien placed AFTER the property has deeded (should a constractors/mechanics lien pop up.)

It's getting messy out here folks!!

• Be picky, but don't be unrealistic. There is no perfect home. Ask Bill Gates, even he'll tell you he's got some little bug-a-boo that is annoying ('course he's got the money to fix it . . . )
• Do your homework before you start looking. Decide specifically what features you want in a homeand which are most important to you. But, see #1 above. BE REALISTIC. Okay, so the home doesn't have a gas grill. Buy a small BBQUE and grill in the summer months!
• Get your finances in order. Review your credit report and besureyou haveenough money to cover your and your closing costs. This should be STEP #1 really!!
• Don't wait to get a loan. Talk to a lender and get go one step further, and get PRE-APPROVED. Pre-Approval means you provided your loan rep with the paperwork they've requested. Pre-Qualification is just lip service at that point. Back it up with paper: W-2's, checking/savings account, IRA, 401(k), gift letters (if you're going to use them), etc. This should be Step #2
• Don't ask too many people for opinions. It will drive you crazy. Ask your agent. They have SOLD homes -- a lot of them!! Ask them, and more importantly RELY on THEM!!
• Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
• Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as the type of mortgage terms that suit you best.
• Don't let yourself be "property poor". If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals. Live within YOUR means . . . not the JONES!
• Don't be naïve. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.
• This should be #1 .. . Get help. HIRE A REALTOR^(r) as your buyer's representative. Better yet, HIRE AN EXCLUSIVE BUYER AGENT!! Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. An EXCLUSIVE BUYERS AGENTS NEVER TAKES LISTINGS. THERE ARE NEVER ANY CONFLICTS OF INTERESTS. An EBA works for YOU -- the BUYER! 100% of the time!!

An EXCLUSIVE BUYERS AGENT IS THE BEST FORM OF REAL ESTATE AGENCY

REPRESENTATION

YOU CAN OBTAIN! HIRE AN EBA TODAY!!

Courtesy of Realtor.org [Emphasis Added]

The IRS 1031 Exchanges have been a way to allow investment purchasers to invest in "like-kind" properties, under Form 1031 in order to perserve an investors equity, and not squeeze the capital gains out of each penny.

And I'm NOT making this up folks, but House Bill 2696 sponsored by Rep. Chuck Riley (D-Hillsboro) wanted to put a KIBOSH on this.

To QUOTE:

With your help, we successfully derailed House Bill 2696! This legislation, sponsored by Rep. Chuck Riley (D-Hillsboro), would cause like-kind (1031) exchanges to become a taxable event in Oregon. As you know, like-kind exchanges are integral to the health of the real estate market, and are one of the most fundamental components of real estate investment.
In response to our strong opposition, Rep. Riley will testify tomorrow morning and ask the House Committee on Revenue to pull House Bill 2696 from consideration. This afternoon, Rep. Riley is issuing a press release acknowledging that the bill was submitted in error.

Building on our success from REALTOR® Day, you helped convey in a short period of time the negative impact eliminating like-kind (1031) exchanges would have on Oregon's real estate market. Thank you very much for your efforts!

Public Policy Department
Oregon REALTORS®
1.800.252.9115

-----------------------------------------------------------------------------

OREGON REALTORS® is action!!

And in case this "Rep" didn't realize this . . . it's a FEDERAL I.R.S. a legal like-kind exchange. NOT local. NOT specific to Oregon! It's FEDERAL! Geez, what are they smoking in Hillsboro?

Coming to your state soon!!! It's call "taxation without representation!" It's BAD for investors, it's bad for business. Don't let it happen to YOU and YOUR State!! Follow OREGONS's LEAD!!

There is something to be said about the late Norman Vincent Peale: He was the eternal optimist!

The upcoming year will be our proving ground, and we need to enter it with a positive, optimistic attitude. It WILL BE 2000FINE!

I am not old enough to have lived through WW I, or WW II or the "GREAT DEPRESSION." But my parents did. And they must have been even more anxiety ridden then I.

The one thing to remember is . . . they survived, as did our Nation.

From some of the conflicts in the early to mid part of the 20th Century, our Nation went through some very painful historical events. We are no where near that now, and while there are some suffering and plight, we are not at war with Japan to the West and Germany to the East. Our country is still strong, and yes we have major overhauls needed. And these overhauls are due by factors that were out of my control . . . and yours.

My clients didn't get snookered into loans they couldn't afford. I checked! I actually pulled my closed deal files for the past two years and noticed that my buyers STILL resided in their property, and only one had sold their property.

When I think how fast we went into "RECESSION" and how quickly the media picked it up and jammed it down our throats, I have to think positively . . . since no one else is!

200Fine! I'm ready for it, are you!?

We have a new President taking office in about 3 weeks, someone who wanted "change" and preached this in his electoral speeches.

Interest rates are being lowered. Housing prices are becoming more and more realistic.

I think that after our winter weather thaws (in a lot of areas in the nation), and people who had been thinking of purchasing will calm down as they STILL are employed, and STILL have great credit scores, they will be out in the Spring, and they will be looking for some good deals. They'll find them!!

As a Realtor(r) for 10 years, I've seen the up and down cycles. Nothing this dramatic, and long-lived, but then I didn't see a lot of borrowers use their personal home as a piggy bank, putting nothing down, and then refinancing on an alleged appreciation. Most people didn't use their property that way, and most people aren't facing default, short sales and foreclosure.

But, there are some people who got in over their heads. Sure, they can blame their lender, they can blame the ease to which they were able to obtain their loans . . . they can even blame their real estate agent, but there has to be some personal accountability when it comes to living above your means.

There's several companies now who are running TV ads in my local area. Send us your gold jewelry, and we'll send you money.

That's the gist of it.

Just sent it . . . and we'll give you money.

Can anyone see the "Sucker Born Every Second" in this type of SCAM!?

But, there will be people who will be panicked, and they will go through their jewelry box and send in their gold jewelry, and get back $40. Then they'll bitch and moan because they got taken.

Hmmmm . . . first rule of NOT being suckered . . . don't send in your jewelry! Don't buy a home that costs more then you can afford. Don't buy a home if you don't have at least 6 months CASH in your bank to pay the mortgage, your monthly bills and other household expenses. Don't live on credit cards.

Start to simplify your live, and the New Year will truly be . . . 2000Fine!

----------------------------------------------------------------------

"Every problem has in it the seeds of its own solution. If you don't have any problems, you don't get any seeds." ~Norman Vincent Peale

"If you're going through hell, keep going.: ~Winston Churchill

"I know God will not give me anything I can't handle. I just wish that He didn't trust me so much." ~Mother Teresa

"If I had a formula for bypassing trouble, I would not pass it round. Trouble creates a capacity to handle it. I don't embrace trouble; that's as bad as treating it as an enemy. But I do say meet it as a friend, for you'll see a lot of it and had better be on speaking terms with it." ~Oliver Wendell Holmes

"I ask not for a lighter burden, but for broader shoulders." ~Jewish Proverb

"You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you." ~Walt Disney

"When written in Chinese the word "crisis" is composed of two characters - one represents danger and the other represents opportunity." ~John F. Kennedy, address, 12 April 1959

"Smooth seas do not make skillful sailors." ~African Proverb

"When it is dark enough, you can see the stars." ~Ralph Waldo Emerson

"To have become a deeper man is the privilege of those who have suffered." ~Oscar Wilde

"A man is insensible to the relish of prosperity 'til he has tasted adversity." ~Sa'di (Musharrif-uddin)

"My strength is made perfect in weakness." ~II Corinthians

"Your most unhappy customers are your greatest source of learning." ~ Bill Gates

"Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, vision cleared, ambition inspired, and success achieved." ~ Helen Keller

"The difficulties and struggles of today are but the price we must pay for the accomplishments and victories of tomorrow." ~ William J. H. Boetcker

"Every time you meet a situation, though you think at the time it is an impossibility and you go through the torture of the damned, once you have met it and lived through it, you find that forever after you are freer than you were before." ~ Eleanor Roosevelt

"Emergencies have always been necessary to progress. It was darkness which produced the lamp. It was fog that produced the compass. It was hunger that drove us to exploration. And it took a depression to teach us the real value of a job." ~ Victor Hugo

"I think my biggest achievement is that after going through a rather difficult time, I consider myself comparatively sane. I'm proud of that." ~ Jacqueline Kennedy Onassis

"The habits of a vigorous mind are formed in contending with difficulties." ~ Abigail Adams

"God will not look you over for medals, degrees or diplomas, but for scars." ~ Anonymous

I need some suggestions. We just closed on a home last week. My client, the buyer, called the Post Office to notify them she's the new owner, start up service, etc. Post Office told her that the address is NOT in their database, and they have never delivered mail to that address. Title shows this address with the plat recorded, and it shows up in the recorders office and country records.

But not with the Post Office . . . they don't show it.

The home is the rear home on a flag lot, which was parceled in 1989 or 1990, something like that. The postmaster of the main branch is going to meet my client today at the property, and talk about where the mailbox should go . . .

. . . but in the meantime, have you heard anything like this before?? Also, the home was "moved" to this site at the time the flag lot was recorded. Are there any suggestions about finding HISTORY on this home, and why the PO has no address in their database.

THANKS IN ADVANCE!