Cleveland, OH

This is an article I read this morning from The Plain Dealer in Cleveland.

As I sit and wonder about things, like less people shopping, my friend who has lowered the thermostat to 52 degrees and was putting on an extra sweater to save some money this winter, I came across this story and thought it was certainly well presented and worthy of activerains legions comments and review.

So here goes. Enjoy!

Number of bankrupt Ohioans is growing and they're owing more

Originally Posted by Laura Johnston and Michael Sangiacomo/Plain Dealer Reprorters

November 21, 2008 22:40PM

Categories: Business Impact, Real Time News

In the latest symptom of a sick economy, more Ohioans -- like others across the country -- are resorting to bankruptcy.

They owe almost twice as much as in past generations, and their ranks have expanded to include more senior citizens. "It could be anybody, from any walk of life," said Robert Keach, American Bankruptcy Institute president-elect. "Generally speaking, these are people who worked hard, had good jobs and just don't anymore."

So far this year, 26,042 people and companies have filed for bankruptcy in the Northern Ohio District of the U.S. Bankruptcy Court -- 11 percent more than in the same period last year in the state's 40 northernmost counties. That includes 3,587 last month, a 38 percent jump over October 2007. Included in the year-to-date total are the 19,708 filings for the more dire Chapter 7, which has already leapfrogged last year's total of 19,120.

Northeast Ohioans are doing better than people elsewhere, though. Nationally, bankruptcies have jumped 33 percent, with more than 880,000 bankruptcies filed through October, according to the American Bankruptcy Institute. Experts attribute most of the increase to people who hadn't saved much and, now, after an illness or job loss or adjusted mortgage rate, can't pay the bills. They can't keep borrowing because banks are reluctant to grant credit. So, after years of stretching credit like Silly Putty, they quit fighting and file.

For full article.. Please visit http://blog.cleveland.com/metro/2008/11/number_of_bankrupt_ohioans_is.html

Attention Veterans -

100% Financing is still available to Veterans, also they do offer 100% Cash Out. Here is a chart that summarizes the refinance options.

VA Home Loan Refinance Program Comparison

	VA Streamline Refinance	VA Cash-out Refinance
Cash-out Allowed	No	Yes
Must Credit Qualify	No	Yes
Must Income Qualify	No	Yes
Appraisal Required	No	Yes
Can Combine 1st and 2nd Mortgage	No	Yes
Maximum Loan to Value (LTV)	No Maximum	100%
Maximum Loan Amount	$417,000	$417,000
VA Funding Fee	.5% (unless exempt)	3% (unless exempt)
Mortgage Lates Allowed In Last 12 Months	1(30 day)	0
Property Must Be Owner Occupied	No	Yes

Contact a local VA lender if you have any questions.

Today, two articles were featured on the cover of the Cleveland Plain Dealer... both very well written, both thoroughly research, these articles illuminate the difficulties of Cleveland's real estate market. Impacted by the national credit crunch affecting all industries, as well as impacted by years of job losses and movement away from Cleveland's urban core, Cleveland faces challenges, and opportunities. Here are links to those two articles:

Shaheen Samavati wrote this article:

Homes in Greater Cleveland beginning to inch up in value modest increases in sales activity seem to be starting to stabilize home prices, experts say

http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-8/1225269219317840.xml&coll=2

Michelle Jarboe wrote this article:

Flats East Bank project put on hold

http://blog.cleveland.com/business/2008/10/flats_east_bank_project_on_hol.html

Good news for Greater Cleveland is that we have a big pool of domestic and internationl investors interested in buying Greater Cleveland Real Estate. Smart investors are attracted by low housing prices, steady rental market, great projects to revive Downtown Cleveland, including The Euclid Corridor, University Circle, Cleveland State University.

The perfect strategic location, Lake Erie with a huge supply of fresh water, great transportation system, deep cultural traditions, rich multilingual and multicultural communities, top hospitals like Cleveland Clinic and University Hospitals, excellent educational opportunities, lovingly cared metroparks - all these features attract more and more people to invest in Cleveland.

I would celebrate this if it were not a huge concern over the way how people do their investments and what areas and properties they chose to invest into. My concern is based on multiple calls and e-mails which I receive every day from potential or actual investors from all over the country and from overseas.

WARNING! It is dangerous for your money and well being to invest into properties which you've never seen before closing the deal. Even and Especially if you work with different investor's gurus who are not the REALTORS!

I feel sorry for people who base their decision to pay for investment (mostly - in big need of rehab) property certain amount of money based on tax assessed value or on Zestimates. It may look like a great deal from New York or California prospective BUT IT"S NOT!

So, I decided to start the series of simple rules for distant investors .

Rule # 1:

Work with trusted REALTOR. Good local REALTOR will be the best source of real information about the market condition, about the neighborhood, trends and development. Don't try to save on Market analysis! It may cost you much more than initial few hundred dollars.

Rule # 2:

Do your homework! Don't limit your homework to browsing the home evaluation portals. You may better refer to Market Snapshot Report which is based on up-to date information from the most trusted source - local MLS.

Rule # 3:

Free cheese is only in the mousetrap! When the deal looks too good to be true, it sure is not that good. There is no such thing as a miracle on the market. Do the reality check! If the new house is listed on public site for $1, it means only that this house is going to go to the auction. More likely, the selling price will be close to real and far far away from miracle $1. You have right to be presented by your REALTOR at the public auction.

Need to sell or buy your Real estate in Greater Cleveland?

Call Local-n-Global Realty: 216-548-4663

E-mail to: Realty@Local-n-Global.com

My daughter Emily is attending the new Montessori High School in University Circle; she loves it! Their website is www.montessorihighschool.org . Be sure to check it out. Many of the new faculty and staff of this intellectually enriching school are choosing to live in Cleveland Heights!

Location, Location, Location: Montessori High School faculty make Cleveland Heights home

Montessori High School's classroom building at 11025 Magnolia Drive. Designed by Charles F. Schweinfurth, the structure houses classrooms, music practice rooms, an art and design studio, and a multi-media conference area. It is said to be one of the finest examples of Federalist architecture in Northeast Ohio.

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When a new Montessori High School (MHS) opens in University Circle this August, many of its faculty and staff will be able to coast down the hill from homes in Cleveland Heights. The first high school of its kind in Northeast Ohio, MHS has attracted faculty from Michigan, California, Washington, and Wisconsin, among other places. “I find the short commute, whether by bike, on foot or by car, to be very convenient,” says French teacher Sebastién Thiry.

James Moudry, director of operations and humanities teacher, was one of the first newcomers to call the Heights home. He, his wife Sarah, and their two young sons moved from Seattle last fall. “Cleveland Heights attracted us immediately because of the wonderful mix of homes and natural settings,” Moudry said. “The quality of life extends from the unique neighborhoods to the retail pockets like Coventry Village. Our move from Seattle was made easier by the overall reception we received from neighbors, the city itself and even the businesses.” He adds, “we are not so old that we cannot enjoy the spirit of Coventry Village. And our sons’ enthusiasm for the playground at Peace Park is only exceeded by their enjoyment of dinner at Tommy’s.”

Mansions now School Building and Dormitory

Moudry worked closely with school founder and executive director David Kahn and academic and curriculum director Christopher Kjaer to launch the school, which will open with 45 students in grades nine through eleven this fall. MHS is housed in two historic mansions located on Magnolia Drive. The Federalist style main classroom building was designed by renowned architect Charles F. Schweinfurth, who designed homes on Cleveland’s “Millionaires’ Row,” as well as the Old Stone Church, Trinity Cathedral, the Union Club and the stone bridges along Martin Luther King, Jr. Blvd.

The team has constructed a greenhouse on the property and forged relationships with the cultural institutions in University Circle. “We have had an office in the Cleveland Botanical Gardens since last September,” said Moudry. “I’ve had a chance to meet employees, guests, and visitors, providing me with a window on how the Botanical Gardens functions.”

A renovated carriage house is the science laboratory. Christopher Kjaer, director of research and curriculum design, moved to Cleveland Heights from Grand Rapids. Kjaer worked closely with a team of scientists and architects to remodel the building. “When I see our new high school, I see the vibrancy of this incredible, culturally rich area. In designing curriculum, how many people have the depth of choices that we have?” says Kjaer. “Look around us: a world class setting that the New York Times called singular in depth and diversity. It’s akin to the perfect education opportunity!”

Passionate about Teaching Excited about Location

Julie Reyers and her husband Dan closed on their new Cleveland Heights home over Memorial Day weekend. “We looked at several homes in the Heights,” says Reyers. “We wanted a neighborhood where our daughters had access to the parks, swimming, and of course, we like the idea of walking.” The new Montessori English teacher was excited when realtor Kevin Cahill was able to show them a home that met all their criteria, and was close to the girls’ new school, Holy Rosary Montessori School. “To think that we have this kind of community so close to Montessori High School, and that it fits what we were looking for is really a gift for all of us.”

Kjaer and Mouldry say that they are passionate about their vibrant surroundings. “University Circle is obviously an incredible location for a school," says Kjaer, "and Cleveland Heights is an incredible home to many of our staff!”

FutureHeights will hold a Members-Only Tour of Montessori High School on Saturday, July 26 at 10:00 a.m. For more information or to become a member of FutureHeights, call 320-1423.

Jean Buchanan is director of institutional advancement at the Montessori High School at University Circle and lives in Cleveland Heights.