Come see this beautifully remodeled house with stunning kitchen. The project included four remodeled bathrooms, new appliances, new cabinets, new flooring, fresh paint inside and out, new fixtures, and two new hot water tanks. The large floor plan makes room for two master bedrooms, a mother-in-law (MIL) suite, office, and 5 bedrooms overall. Even the garage was drywalled and painted. On the exterior, the landscaping has been updated. The entire back length of the house is spanned by two upper and lower decks. There’s a big back yard with a gate that leads to an immense open space.

Legal ADU (Accessory Dwelling Unit)

A new ADU ordinance in Lynnwood allows an ADU to be attached to the main home and share an area of parking.  Formerly, ADUs in Lynnwood had to be entirely separate buildings on a lot of 10,000 square feet or greater with separate parking.  The mother-in-law suite in this house complies with all other rules about the size of the unit, a hidden entryway, and that the house must appear as a single family residence from the street.

The kitchen of this mother-in-law suite is stubbed in with utilities available along two walls where a kitchen was formerly located.

Lynnwood Accessory Dwelling Unit Ordinance (see paragraph G)

Lynnwood Accessory Dwelling Unit Application (PDF)

Edmonds School District

Besides the City of Edmonds, the Edmonds School District services Lynnwood, Brier, Mountlake Terrace, and Woodway.  Check out their Facebook page for the latest news and events.  The nearby Martha Lake Elementary is within walking distance of the house and serves 600 students.  One of their teachers, Mrs. Kite, went to Botswana last year to support a school for AIDS orphans.  See her blog about Botshabelo.

Life in SW Snohomish County

Employment in Snohomish County is dominated by Boeing with its 39,000 employees on the 747, 767, 777, and 787 (Dreamliner) programs.  The major employers in the county are aerospace, medical technology, healthcare, local government, education, and tourism.  Some must-see attractions of Snohomish County are the Boeing Future of Flight museum and factory tour and the Reptile Zoo in Monroe with its most extensive collection of reptiles in the Pacific Northwest.

Homes for Sale in Lynnwood

Martha Lake Neighborhood Homes for Sale

4+ Bedroom Homes for Sale in Lynnwood

Edmonds School District Houses for Sale

Complete Details and Photos of the Lynnwood Remodeled House with ADU

PHOTO ALBUM (183 IMAGES)

18133 8th Place W, Lynnwood, WA 98037 (MLS # 460495)

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Beautifully REMODELED house with stunning kitchen. Four remodeled bathrooms, new appliances, new cabinets, new flooring, fresh paint inside and out, new fixtures, new hot water tanks. Large floor plan includes two master bedrooms and a mother-in-law (MIL) suite (legal ADU once kitchen installed). Even the garage was painted. Updated landscaping. Huge 2 level back deck. Big back yard. Back gate to open space. Excellent Edmonds SD schools with Martha Lake Elementary nearby. 1.5mi to I-5 @164th St.

Property Type(s): Residential

Last Updated	4/26/2013	Tract	Sunrise View
Year Built	1978	Community	Martha Lake
Garage Spaces	2.0	County	Snohomish
Total Parking	2	Walk Score ®	18

Schools

Additional Details

Features

Listed with eXp Realty

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

(view all details for MLS #460495)

Mortgage refinance – Factors to watch out for

You need to factor in the following points while shopping around for an affordable mortgage refinance:

Term of your loan – Traditionally, 15-year fixed rate loans are found to be cheaper than 30-year fixed rate loans. As a result, yield curve with respect to mortgage refinance changes dramatically. In that case, you can even opt for a 10-year fixed rate loan so as to secure an affordable monthly repayment amount. For instance, you can take out 15-year mortgage loans that are available at 0.5% lower rate of interests as compared to the rates of 30-year ones.

Size of your loan – In case you are forced to take out larger than usual amount of mortgage loan, then you’ll have to pay 3 quarters of a percentage point more as compared to rates of a jumbo loan. This is because once your loan amount crosses the conforming limits set by the mortgage regulators it ceases to be a regular loan and that it is considered a jumbo loan. However, there are some small loans that come at steep rate of interests as well. This is because lenders do not see handsome profits coming out of such paltry amount of refinance and so, they inflate the interest rates on such deals.

Type of refinance you choose – You’ll have to pay the same interest on the loans as any other homebuyer, if you opt for a rate and term refinance. Moreover, your interest rate will be 0.25% higher, if you apply for a cash-out refinance loan and your loan-to-value ratio is somewhere around 70% in terms of first mortgage. However, your mortgage payment amount will not be as high, if your loan-to-value ratio is 60% or lower.

Type of your house – Another major factor you need to consider while analyzing the mortgage refinance rate you would probably have is the type of residence you quoted as collateral for the existing loan. According to some mortgage experts, if you own a condo and you want to refinance it, then be prepared for a reasonably high rate of interest. This is because lenders perceive such properties as greater risk to their investments than single family homes.

Your credit score – Due to the housing bust, lenders have become wary of refinancing mortgage loans at the drop of a hat. Nowadays mortgage lenders will study your creditworthiness by going though your credit report. For that reason, you must have a credit score of about 650-700 so as to qualify for decent refinance rates. However, even with that type of credit rating, you’ll have to pay 3/8 times more for a refinance than people with a credit score of 760 or higher.

Lastly, do survey the mortgage market for better rates and get multiple quotes so that you can opt for the most affordable one.

House on Idyllic Pond Setting

Issaquah House of Memories

This property is an estate sale (owner passed away) and I felt a little melancholy touring it.  The old furniture was marked for auction, a photo from the 1950s showed the young happy family who used to live here, and the basement was filled with mementos of the past.  At the same time, the potential of this house is obvious and there were several elements I found attractive:

• The beautiful pond constantly fed by a mountain stream with fresh water.  This would probably be impossible to recreate on another property.
• The covered patio with an outdoor brick grill and chimney.
• The three wood-burning fireplaces in the kitchen/dining area, the living room, and the master bedroom.
• The large master bedroom with vaulted ceiling.
• The big family room upstairs with a view down on the pond.
• The upstairs bathroom with sauna.
• The full length, full height basement for storage or future expansion of living space.

Rewarding Remodeling Project

The house requires an ambitious remodeling project.  The roof shingles and furnace appear to be relatively new.  After that the house needs:

• Paint inside and out.
• Removal of paneling and texturing of walls.
• Complete interior remodel: kitchen, bathrooms, flooring, etc.
• Probably new wiring.
• Probably new plumbing.
• A new hot water tank.
• New windows.

There are two design challenges for the creative remodeler.  Firstly, there is no real front door.  One enters through the dining room sliding door at the back of the carport.  Perhaps the original front door was overtaken by the laundry area.  Secondly, the master suite is entered through the master bathroom.  A new entry in a different location should be created.

The size of the house, its attractive setting, and its location near downtown Issaquah would make the project worthwhile.

Issaquah Commercial Opportunity

The house is not the end of the property.  Two other buildings are included: an office and showroom with spacious rooms and a bathroom with a shower and a huge warehouse with three cranes and a big dock.  The three structures together total 9,051 square feet, sitting on 1.83 acres.  The whole is zoned commercial (Neighborhood Business RA-5).  The office and warehouse are currently rented out month-to-month to an Asian furniture import company.  A steady flow of traffic brings consumers nearby on the Issaquah-Hobart Road.  The property sits just 3 miles south of Downtown Issaquah.

Beautiful acreage

Vibrant Downtown Issaquah

Issaquah’s vibrant downtown district has retained its historic charm, while attracting entertainment, educational, and shopping venues to attract the public.  The train depot – now a museum – and the refurbished trolley that runs on half a mile of track anchor the historic district.  A major theater company, the Village Theatre, operates two stages on Front Street.  A collection of art and music schools have grown up on Front Street and nearby.  Issaquah’s landmark Gilman Village shopping center houses boutiques, eclectic shops, restaurants, and services in historic buildings preserved from Issaquah’s past.  Issaquah’s biggest festival, the Salmon Days in early October, celebrate the return of the salmon to the downtown hatchery and attract immense crowds from all over the Eastside and greater Seattle area.

Complete Details and Photos

Photo Album (137 photos)

Listing courtesy of Bev Watson of RE/MAX Metro Eastside.

23831 SE Tiger Mountain Rd, Issaquah, WA 98027 (MLS # 394333)

Zoned commercial - Neighborhood Business RA-5. 1.83 Acres of level property with single family home, Huge Warehouse and office/showroom Total structure are approximately 9,051 square feet. Possibilities are endless as the single family two story residence would make a great home with remodeling and has an unfinished basement. Large spring fed pond and creek border the property. Office has bathroom/shower and spacious rooms, Warehouse is huge with 3 crane lifts and high dock.

Property Type(s): Residential

Last Updated	3/19/2013	Tract	n/a
Year Built	1954	Community	Tiger Mountain
Garage Spaces	6.0	County	King
Total Parking	6	Walk Score ®	31

Schools

Additional Details

Features

Listed with RE/MAX Eastside Brokers, Inc.

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

(view all details for MLS #394333)

Notice of Trustee’s Sale – What you want to avoid

Problems with the Conventional Short Sale Process

The typical short sale negotiator is a real estate agent who has maybe taken a one or two day class in short sale negotiations.  The agent will list the house for sale, guessing at what price the bank might accept.  Buyers will know bank approval of a short sale takes a long time, so many of them will avoid the house.  Once a buyer is eventually found and a contract signed, the agent will collect financial documents from the homeowner along with a cringing, apologetic hardship letter.  This package will be dropped on the bank’s short sale negotiation department, where it goes to the bottom of the stack.  After 2 to 3 months, the file will rise to the top of the stack (if it wasn’t lost in the meantime) and a negotiator on the bank’s side will be assigned.  The agent has maybe been coached in what words to say, but he or she has no leverage over the bank.  Agents are basically begging the bank to cut their clients a deal.  The bank may push back on several issues:

• The bank might demand a higher price from the buyer.  The bank is not bound by the list price or the contract price.  If the buyer has stuck around this far, they may walk at this point.
• The bank might insist that the seller pay some thousands of cash towards the loan deficiency – the portion of the loan that the sale won’t cover.  They might ask the seller to sign a promissory note covering the whole deficiency.
• The bank might put a deadline on their approval that hurries up the seller’s move out plans.

Finally, the bank will blot the seller’s credit report with an account that was not paid in full.  Sellers are typically told that they’ll just have to accept a drop of 200 points off their credit score and expect to wait two years before qualifying for a new home loan.

At the end of this bruising process, the seller is often left wondering if the short sale was worthwhile.  Foreclosure might have been less stressful.

A Speedy and Efficient Short Sale Solution

Penfield Negotiation Services (PNS) offers an entirely different approach.  PNS is a branch of a Bellevue, Washington law firm, Penfield Legal Services.  PNS gets you a better short sale outcome through research into your loan and the respect a law firm commands by the threat of litigation.

The short sale process with Penfield Negotiation Services works as follows:

1. The home owner fills out a client intake form and puts down a small fee to cover paralegal duties.
2. PNS will research the loan, looking for deficiencies in its origination or handling.  For example, the banks would routinely ignore IRS rules about assigning loans into the tax deferred trusts they sold to investors, calling into question whether there is a valid owner of the loan.  See “The Gathering Mortgage Securitization Scandal” for more discussion of this topic.  A loan originated between 1992 and 2007 is a prime candidate for this service.  Old WAMU and Countrywide loans are Penfield’s favorite targets.
3. PNS will start negotiations with the bank right away – no waiting until you find a buyer, starting with the bank’s legal department.  PNS will draft a QWR (qualified written request), asking the legal department to identify the true owner of the loan and responding on any discrepancies found.  Under the RESPA law that governs lending, the bank must acknowledge the request within 5 days and respond in detail within 30 days.  The tar trap of the bank’s short sale negotiation department is avoided.
4. PNS will direct the bank to send communications to them, relieving the homeowner of more worry.
5. Negotiations proceed apace with the bank’s legal department and a bank approved short sale price is agreed on.
6. In the meanwhile, the homeowner would put the house up for sale with a qualified real estate broker.  If a “bank approved” price can be advertised on a short sale, a greater pool of buyers will be interested in the property.  They will know that there need be no long delay waiting for bank approval.
7. The bulk of PNS’s fee is paid at the back end – after the house is successfully sold – out of the proceeds going to the bank.  The home owner owes nothing more to PNS.
8. PNS will not accept in most cases that the bank has the right to go after the homeowner for a deficiency.  PNS will propose that the deficiency be waived.
9. In certain circumstances, the bank will be asked to mark the account as “paid in full”, so that the home owner’s credit score will not be dinged.

What is a Short Sale?

A short sale is the sale of a property for less than is owed to the lender.  The lender’s permission is required to release their lien and allow the sale to proceed.  Typically, a home owner who is underwater on a property and interested in a short sale will have stopped paying on their mortgage.  This gives the bank an incentive to accept the sale at the current market level and write down the loan.  Before you cry a bucket of tears for the bank, realize that they typically have a loan insured for 65% of its face value (entirely separately from whether the borrower is paying mortgage insurance).  When you add the proceeds of the typical short sale onto the 65% recovery through insurance, banks usually make a profit on a short sale.  On top of that, they may ask the borrower to pay a portion of the loan deficiency.  No wonder then that banks are now encouraging short sales.

Penfield Legal Services can be reached at robert@penfieldlegal.com or 425-770-4245.  Or fill out the contact form below.

Short Sale

Henderson Inlet View

Olympia Waterfront House on Henderson Inlet

This magnificent property on Henderson Inlet has many potentialities.  A fenced pasture and small barn can support animals.  A third acre of tidelands can be seeded with geoducks for extra income.  Geoduck demand is exploding in Asia.  The two levels of the house are set up with separate kitchens and laundry rooms for extra rental income.  The forest and trails on this property and the neighborhood in general are very quiet and beautiful.

Olympia Six Bedroom House

This is a big floor plan with 3 bedrooms up and 3 down and a kitchen and laundry room on each level.  The upstairs kitchen and main bathroom are beautifully remodeled and slathered in rich tile.  Gleaming hardwood floors flow throughout the house on both levels.  A dramatic dining room upstairs can be screened from the big living room with partition doors.  A big skylight suspended over the table lights up the dining room.  The large view windows in these two rooms look down on the beautiful grounds and the waters of Henderon Inlet.  The living room and one bedroom give access onto a sturdy, covered deck for enjoyment of the tranquil scene.  Upstairs is also found an office and 2 car garage.  Downstairs is located a big master suite with attached bathroom and walk-in closet and access to the patio.

Olympia House on Acreage

Henderson Inlet

The water quality at Henderson Inlet has been improving (see “Henderson Inlet on the mend” in The Olympian).  Volunteers have established a community shellfish farm and have worked to identify and mitigate sources of pollution (animal waste runoff, failing septic systems, for example).

The inlet is home to an important, 800 acre natural conservation area at Woodard Bay.  The bay is home to a blue heron rookery, bat colony, harbor seals are found, bald eagles, river otters, bald eagles, and many other birds.  Most of Woodard Bay is currently closed to the public during restoration work through March 2013.

North Thurston School District

The well-regarded North Thurston School District serves nearly 14,000 students in the City of Lacey and surrounding areas of unincorporated Thurston County.  Under new leadership since 2009 (“Meet Superintendent Raj Manhas“), the district has made notable progress in science and math test scores, better attendance, and higher graduation rates.  The district has made progress toward its goals through new staff training, use of mentors and peer tutors, intervention procedures for struggling students, and greater community involvement (such as “Family Math Nights”).  The district is proud of its many recent awards in sports, academics, and more.  The recently passed levy will provide funds for greater investment in technology.

Two innovative programs at the North Thurston School District include:

• Aspire Middle School – This is a magnet school for the performing arts in music, dance, and theater.
• New Market Skills Center – A consortium of 10 districts and 25 high schools participate in this innovative technical training program.  High school students (< age 21) earn industry standard certifications and college credit at the same time.  Eighteen career track programs include automotive, health, technology and graphics art, culinary arts, and more.

Down at the Beach on Henderson Inlet

Featured Henderson Inlet Waterfront Property

ALBUM WITH 163 PHOTOS OF 5640 SLEATER KINNEY ROAD, OLYMPIA

Listing courtesy of Seth Wallace, Managing Broker at OlympiaHomeBuyers.com.

We're sorry, but we couldn't find MLS # 412701 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

Unobstructed ocean view

Owning a Washington Coast Vacation Rental

In 2007 we purchased a newly constructed house in Pacific Beach with the idea of running it as a vacation rental to cover our expenses, while we enjoyed a beautiful vacation getaway for our family. We got the idea the previous year from a couple in southern Oregon who managed a vacation rental at Port Orford at a similar 2 to 3 hour distance from home. Then I read “How to Rent Vacation Properties by Owner” by Christine Hrib-Karpinski – the paramount guru on the topic. This book gave us courage to try the vacation rental business ourselves. It calmed several fears, such as that it is extremely rare that guests will maliciously damage a house (which has been our experience as well).

The experience has been extremely positive. We’ve thoroughly enjoyed the Washington coast and nearby lakes and rain forests, exploring every bit of it you can reach in a day trip. The biggest surprise of running the vacation rental is how very grateful the guests are, giving us fulsome praise in our guestbook and by email. The guests have enjoyed this house every bit as much as we have.

See Bob’s Pacific Beach House.

Beautiful Grays Harbor County

The closest ocean beaches to Seattle are found in Grays Harbor County.  Fifty miles of wide, sandy beaches are divided as follows:

• The South Beach: Grayland and Westport.  Westport is home to the state’s tallest lighthouse, an excellent maritime museum, and a working harbor with whale watching and deep sea fishing charter boats.  Grey whales pass by the area in the spring.
• Ocean Shores and Ocean City: The largest retirement and vacation community along the Washington coast.  Ocean Shores homeowners enjoy membership in a club house, private park, and indoor and outdoor swimming pools.  A major resort and casino is found at the top end of Ocean Shores, the Quinault Beach Resort.
• The North Beach: Copalis Beach, Seabrook, Pacific Beach, and Moclips.  This is the prettiest area of the coast with high cliffs behind the beach topped with a forest and rivers cutting through the sand to the ocean.  Seabrook is a postcard perfect, purpose-built beach recreation community with beautifully designed homes that are all unique architecturally.
• Quinault Indian Beaches: The beaches on the Quinault reservation at Point Grenville and Taholah are the most beautiful in the county.  Unfortunately, they were recently closed to non-members.  We can hope for the visitor pass system to be restored in future.

Nearby is the jewel of the Olympic Peninsula: Lake Quinault with its sparkling water, mountain backdrop, historic lodge, and ancient rain forests.

Copalis Rock

Freedom on the Beach

Considerable freedom is allowed on the Grays Harbor beaches compared to the Olympic National Park beaches to the north.  Pets are allowed on the beach.  Driving is allowed on the beach in designated areas.  Beach driving in Grays Harbor and Pacific counties is mentioned in the Washington State Driver’s Guide for new drivers.  Fireworks are allowed at July 4th and there is a massive, hours-long display when the whole community parks on the beach between Ocean City and Ocean Shores and lets off their fireworks at the moment the sun sets on the horizon (see video of Fire O’er Water).  Beach fires are allowed, if kept 100 yards away from the beach grass.  The only beach activity that is highly regulated is razor clam digging, which requires a permit.

Self-Management (Vacation Rental by Owner)

So what’s involved in self-management of a vacation rental property?  You have to place and pay for advertising.  You will respond to calls and emails inquiring about the house.  It will take maybe 10 inquiries to get one reservation.  You need to establish policies about payments, deposits, and cancellations.  You will manage these payments and keep track of who hasn’t paid you on time.  If you don’t live nearby, you’ll need to arrange for cleaning, landscaping, and repairs.  The house we bought was new construction and completely empty, so we had to fill it with furniture, contents of the kitchen, linens and towels, cleaning supplies, pillows, books, games, toys, movies, a stereo, three TVs, an Internet router, and on and on.  We had a busy, full three weeks getting our house ready for the first guest.

Two big concerns new vacation rental owners will have are how will the guests treat the property and how will the property stay secure when it is empty?  On the first point, Karpinski’s book reassured us that malicious damage by guests is extremely rare, and that is how our personal experience has turned out.  Regarding security, we bought in a fortunate location surrounded by a resort for naval personnel – not the first place a thief would think to target.  However, even a remote property can be made more safe: upgrade the locks on doors and windows, set lights to turn on and off with timers or sensors that detect darkness, and keep the landscaping trim and neat so that the house doesn’t look abandoned.

On the North Beach, we are lucky also to have an excellent and affordable vacation rental management company: Pacific Beach & Beyond.  Their full management fee is reasonable at 35% of rental income.  They also offer unbundled services to self-managing VR owners.  We use them for garbage service (cheaper than the county service), repairs, and yard maintenance.  We were fortunate to find an excellent, reliable cleaning lady who lives just three blocks away (see Pacific Beach Local Services).

Where to Buy a Vacation Rental?

You can’t open up a vacation rental just anywhere.  City zoning has to permit it.  If the property is governed by a condominium or homeowner’s association, then you must check that these rules permit nightly rentals.  Think about the future of your community too.  If the area is heavily occupied by residents and does not depend on tourism, the community might pass a nightly rental ban in future.  The best locations to buy a vacation rental would be an area where vacation rentals are well-established and tourism is welcomed.

In Grays Harbor County, most of the coast is zoned for nightly rentals.  However, Ocean Shores banned new vacation rentals back in 1993.  Any existing vacation rentals were grandfathered in, but their licenses cannot be transferred to a new owner.  Westport permits any residence to be a vacation rental, but they must be registered, a designated local property manager must be identified, and the neighbors notified with the manager’s contact information (more about vacation rentals in Westport).  Seabrook requires any owners wishing to rent out their houses to participate in the community cottage rental service.  Certain HOAs along the coast restrict rentals in their covenants, so make sure you ask a real estate agent about the rules before you get serious about a house.

Ocean View Deck

Alternative Uses of Vacation Rentals

One great benefit of owning your vacation rental is the ability to trade it with the owners of other second and vacation homes.  HomeExchange.com is the busiest website for arranging home exchanges.  It’s really easy to make an exchange with fellow vacation rental owners, since the exchange can be non-simultaneous. We have an annual exchange going with a family who own an Idaho mountain condo for our Pacific Beach house.  On one trip I planned out three exchanges between Seattle and Edmonton, Alberta on the way to see relatives.

Some owners focus exclusively on the corporate/short-term rental market (see OlympiaFurnishedHomes.com, for example).  These properties are rented with a one month minimum and guests will stay up to 12 months.  Vacancy can be very low, with the next tenant scheduled before the current one moves out.  People rent these furnished houses for many reasons: short-term work assignments, extended travel, extended visits to relatives, divorce, remodeling, relocation, or waiting for a house to be built.  If your rental has wireless Internet, you can tap into the growing market of people who can live and work anywhere, and who might enjoy an extended stay at a vacation destination.  Renting with a 1 month minimum lease also gets around zoning restrictions.  Craigslist has a sublets/temporary category for these rentals, search for “furnished”: Craigslist sublets/temporary and “furnished”.

Featured Vacation Rental Property

Gourmand’s Kitchen

Just south of Pacific Beach is a very special view home for sale that would make a lovely, high-end vacation rental.  At 5 bedrooms and 3,948 square feet, it would rank among the largest vacation rentals on the coast.  I often get inquiries at my 3 bedroom rental for large family groups or church retreats that need more space.  Often I have nowhere to send them.

Perched at the top of Roosevelt Ridge, this home has a spectacular view down to the beach and 20 miles out onto the ocean, drinking in the beautiful sunsets.  A short drive or longish walk below the house, you and your guests can reach the beach down the Roosevelt Beach Road.  From this point you can wander or drive over 7 miles of sand between Joe Creek at Pacific Beach or the Copalis River.  The only seastack rock between Point Grenville and the Columbia River is found here: Copalis Rock – covered in mussels and starfish and topped by nesting birds.  Also found here is the only official beach airport in the country: Copalis State Airport, where flocks of small planes will land on summer weekends.

This house is particularly well-laid out as a vacation rental or bed and breakfast (B&B).  The five bedrooms are individual suites with their own bathrooms and gas fireplaces.  A spacious, luxurious kitchen becomes the focal point for entertaining and communal meals.  A huge deck stretches the length of the back of the house for enjoyment of the view.  The house sits on 3 acres – plenty of parking and room for kids and pets to roam.

Listing courtesy of Patricia Stainbrook at Washington Coast Real Estate.

We're sorry, but we couldn't find MLS # 372632 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

A Distressed House

Mortgage Securitization Scandal

There’s a scandal surrounding the securitization of mortgage loans that is gathering pace and breaking open.  Attorneys general are suing the banks and their mortgage clearinghouse, MERS, over deceptive practices.  Investors are suing banks over busted investments in mortgage-backed securities.  And homeowners have successfully blocked foreclosure, where the ownership of their mortgage was put into doubt.

Just from the recent news I find:

• NY Attorney General files suit against JP Morgan Chase over mortgage backed security fraud in its Bear Stearns subsidiary.  The AG alleges that the bank failed to perform due diligence on its loan portfolio and ignored problems it did turn up.
• Arguments were heard in Boston over the Massachusetts attorney general’s allegations that five big banks and MERS had wrongly foreclosed on properties and corrupted the commonwealth’s land records.

• Bank of America threatens to foreclose on a Portland, Oregon woman’s home for “$.00″ dollars owed.

Loan Modification Solution

“Banks should held accountable for their misbehavior”, says Washington state real estate attorney, Robert Penfield.  His favorite targets are unenforceable loans originated by Washington Mutual Bank (WAMU) and Countrywide Home Loans – held today by JPMorgan Chase and Bank of America respectively.  It’s unclear whether the WAMU loans were properly transferred to JPMorgan, when JPMorgan acquired WAMU in a rush.  Among Countrywide loans he always finds wrongdoing.  Nobody should feel sorry for the banks.  They made all their money up front when originating and securitizing the loans.  They left borrowers to suffer when the housing market crashed.  The banks have often been compensated for non-performing loans through reinsurance.  Penfield’s approach to the housing crisis is to bring pressure to bear on the banks through litigation, negotiate low interest loan modifications with an extended 40 year payment term, and thereby help borrowers back onto their feet.  It’s in the interest of all parties – borrowers, the banks, and society as a whole – to convert these distressed pre-foreclosure situations into performing loans with happy homeowners making regular payments.

There are two main terms for interested homeowners to learn about: MERS and REMICs.

MERS (Mortgage Electronic Registration Systems)

The Washington Supreme Court ruled recently in Bain vs. MERS (see “The Game Changing Implications of Bain vs. MERS” by Ellen Brown) in the favor of a homeowner seeking to block foreclosure.  MERS is a clearinghouse for loans that had the effect of messing up county real property records and leaving it unclear who held liens against properties.  The court said that MERS cannot conduct a non-judicial foreclosure and might be sued under the Washington State Consumer Protection Act for representing itself as the beneficiary of a loan, when it is not.  Whether the CPA would apply, would depend on individual circumstances to be argued before lower courts.  MERS argued as an alternative that it could be the agent of the beneficiary.  But the court ruled that there can’t be an agent without a principal directing the actions of the agent, and no principal had been identified for Bain’s foreclosure action.

Read on: it may be that no principal was identified in Bain vs. MERS because MERS and the banks can no longer identify a principal…

REMICs (Real Estate Mortgage Investment Conduit)

REMICs are trusts that hold mortgages in a pool for investors to buy.  The REMIC is not taxed, if the loans are assigned to the trust within 120 days of its formation, after which the assets have to stay fixed.  The assignments were never done in almost every case, according to Penfield.  The tax penalty is supposed to be the entire face value of the loan.  The loans are in limbo: the banks supposedly sold them to investors, but the loans never reached the tax vehicle the investors were buying.

A detailed article by two professors at Brooklyn Law School describes the mishandling of REMICs and the potential tax liability to their investors: see “Wall Street Rules Applied to REMIC Classification”.

Listen also to this startling interview of authors Dave Krieger (“Clouded Titles”) and Ellen Brown (“Web of Debt”): “Virulent Worm Destroys US Real Estate Market”.  Ellen explains why the banks held off from assigning loans into the REMICs and how it may not be possible to identify a valid owner of a loan.  In a follow up interview with Dave Krieger: “Clouded Titles: The Next Step”, Dave explains how the money for a borrower’s loan is reserved in a REMIC trust at the time of loan application and the deadline for closing the assets of a REMIC may have passed by the time the borrower signs on the loan.

Where to Get Help: Loan Modifications and Foreclosure Defense

Washington state is at the forefront of these developments and is fortunate to be home to a local law firm that understands the scale and complexity of this scandal and what to do about it.  Penfield Legal Services in Bellevue, Washington can run a free, preliminary audit of your loan to determine if you have a valid complaint.  The Penfield team is made up of highly educated partners with long histories working at institutions in the middle of this crisis.  If they take your case, they will:

• Conduct a detailed forensic audit on the loan.
• File a complaint with the lienholder challenging the legality of the loan.
• Negotiate a loan modification.

The typical proposal to a lienholder with a faulty loan is a principal reduction to 80% of the home’s current tax assessed value or appraisal (depending on desired outcome), a 2% fixed interest rate, and a 40 year amortization schedule.

If you prefer to dispose to the property through a short sale, Penfield Negotiation Services can help based on these same concepts: rooting out the misbehavior of the banks and winning the best terms through the threat of litigation.  Read more here: “Penfield Negotiation Services Achieves Better Short Sale Results“.

For Sale by eXp Realty

Home Mortgage Steps

Buying a home is not that easy a process. There are various factors, which you will be required to consider, before obtaining a home mortgage. Irrespective of the fact that you are a first time home buyer or if you are going to get a second mortgage, it is important for you to follow some steps. These may help you in minimizing the problem which, you may otherwise, would have to face with regards to obtaining a home mortgage.

The steps which you may be required to follow are the likes of:

1. Considering the different loan options

It is important for you to consider the loan options which are available, with regards to the home mortgages. There are various options available like the fixed rate mortgages, the adjustable rate mortgages, the VA loans, the FHA loans, and the reverse mortgage, and so on.

2. Determining your budget and affordability

It is important for you to determine your budget and affordability, before taking out a home loan. This is important, or else you may later fail to keep up the payments.

3. Checking both your credit report and credit score

It is important for you to have a good credit rating, starting from a clean credit report and also a good credit score.

4. Determining the home price range within which you fall

Just as it is important for you to determine your affordability, it is equally important for you to consider the price range within which you fall. This is going to help you decide, which home you can buy as per your affordability.

5. Looking for mortgage offers by different financial institutions

There are numerous financial institutions, and these make numerous mortgage offers. So, you can look for the different offers that the mortgage and the financial institutions are making. This is going to help you decide, if you can take out any one of these.

6. Getting the required documents which are to be submitted

It is important for you to start collecting the documents which you will be required to submit, in order to obtain a home mortgage. This is going to help you with easily taking out a home loan. This may also help you with quickening the home loan approval process.

7. Comparing different mortgage offers that are available

After you are done with checking the different mortgage offers which are available, you will have to compare the different offers. The best way to do that would be to use a mortgage calculator, which helps you calculate the cost of taking out a mortgage.

8. Considering closing costs on the home mortgage

You will have to consider the closing cost of a mortgage. This s a very important part which is to be considered, while choosing a mortgage. This plays a pivotal role towards determination of the cost of obtaining a mortgage.

9. Getting pre-approved on the chosen mortgage

It is important for you to get the pre-approval done, with regards to the mortgage which you have planned to take out, for financing your home. This too, helps with quickening the home loan obtainment process.

10. Starting to save dollars for down payment

As you are required to make a down payment on before taking out a mortgage, it is important for you to have enough money for the same. So, start saving the money as per the down payment requirement.

All of these steps if followed together, may help you with obtaining a home mortgage, without falling deep into mortgage debt, and getting the right mortgage too.

Des Moines Remodeled Kitchen

Remodeled Des Moines House

This professionally remodeled Des Moines home is already generating excitement and won’t last long on the market.  The interior is fully updated, including two kitchen remodels, remodeled bathrooms, new windows, fresh paint, gorgeous hardwoods, new carpeting, crown molding, and new furnace.  The living room windows drink in the Puget Sound and sunset views.  Dramatic tiled fireplaces upstairs and downstairs dominate the living and family rooms.  The expansive four bedroom floor plan makes space for an office, extra kitchen, oversized living and dining rooms, and big utility room.  The big back yard features a dramatic swimming pool deep enough for diving.  (Pool needs some TLC and new equipment.)

Some friends of ours are selling this home.  The lady’s father is the contractor and lavishes great attention to detail on her projects.  She says he sometimes ends up working for $1 per hour!

Designer Kitchens

The main, upstairs kitchen was tastefully designed with granite counter tops, custom cabinets, patterned tile back splash, stainless appliances, beautiful wood flooring, new kitchen sink, and granite eating bar.  All appliances are included: refrigerator, range, microwave, and dishwasher.

The basement party kitchen was remade with the same tasteful materials and includes a big, granite topped island, range and microwave, sink and cabinets with the refrigerator nearby in the utility room (we could only squeeze in so much).

Des Moines Waterfront

Des Moines is a town that makes good use of its Puget Sound waterfront.  The historic heart of Des Moines is its Beach Park – site of its first homestead and later a sawmill.  The new Beach Park Auditorium has just opened on the site.  Alongside is the Des Moines Marina, a full service marina with room for 840 recreational vessels.  Attached to the marina is the Des Moines Yacht Club, established in 1957 and featuring monthly cruises for members.  June through October at the north end of the marina you’ll find the Des Moines Waterfront Farmers Market (farmers market on Facebook) whose vendors have all pledged to uphold environment stewardship principles that support the long term viability of farmland.  Fine dining is to be found on the Des Moines Waterfront at Anthony’s Homeport Des Moines, overlooking the marina, and Salty’s at Redondo Beach with views of the Olympics and Maury Island.

The Des Moines Arts Commission puts on many events along the waterfront, including a summer concert series.  Fireworks are set off at the marina on July 4th.  At Christmas time the Argosy Christmas Ship visits for caroling around a bonfire on the beach.

South of downtown Des Moines is a popular state park: Saltwater State Park.  Don’t forget to bring your Discover Pass to pay for parking at any Washington State Park.

Education in Des Moines

Des Moines is home to one of Washington state’s 34 community colleges, Highline Community College.  Highline was the first community college established in King county and ranks among the largest higher education institutions in the stae.  Highline values community involvement, globalization, and innovation.  Coming up in October 2012 they will host a UNITE education summit for the promotion of higher education among the southeast Asian community.

Highline Public Schools is a leader in creating innovative specialty schools for diverse interests.

• The CHOICE Academy in middle and high school teaches core curriculum in the morning, and then releases students in the afternoon to pursue personal interests in the arts, sports, hobbies, and other interests for school credit.  Students work closely with advisors to structure an educational plan.
• The Big Picture middle school emphasizes hands-on learning, guest professionals and mentors, and frequent field trips to provide real world learning.
• The Arts & Academics Academy (AAA) provides students with a rigorous arts education on top of core curriculum.  The many classes available include creative writing, painting, drawing, music, ceramics, photography, digital design, and dance.
• Des Moines is the temporary home to the absolutely unique Aviation High School – an aviation themed college preparatory school with the goal to become the premier choice for science and engineering.  The aviation schools plans to move to a new facility adjacent to Boeing Field.

Parents and benefactors get involved with the district through the Highline Schools Foundation, which has distributed $1.1 million in teacher grants and funding to support district programs since 1999.

Homes for Sale in Des Moines

WATERFRONT HOUSES AND CONDOS FOR SALE IN DES MOINES

VIEW HOMES FOR SALE IN DES MOINES

4+ BEDROOM HOUSES FOR SALE IN DES MOINES

SOUTH KING COUNTY HOUSES FOR SALE WITH A SWIMMING POOL

Complete Details and Photos of the Des Moines Remodeled House

PHOTO ALBUM (111 IMAGES)

Listing courtesy of Christy Kim of Atterberry Real Estate Group.

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Walking on Water at the Puyallup Fair

The Puyallup Fair

My wife and I realized that we hadn’t been to the Puyallup Fair in over 20 years – that was with her twin nephews who were 4 years old at the time.  We were overdue to take our own nine year old to the fair.  The visit was well worth it.  He had a blast.

Do the Puyallup

The Puyallup Fair ranks among the top 10 fairs nationally and is the single largest event by attendance in Washington State.  The fair runs for 17 days every September with a four day Spring Fair recently added.  The Fair attracted 1.1 visitors to the September 2012 event just passed.

Random Fair Facts:

• 162 food booths (in 2011)
• 99,917 Giant Slide riders (2011)
• 391 lost kids (2011)
• 927 pounds – winning giant pumpkin (2011)
• established in 1900
• top attractions in the 1920s: chariot racing and trick horse riding

Half Day Visit to the Puyallup Fair

We zipped down to Puyallup from Bellevue on a week day after school to avoid the crowds (ha!).  We found free street parking a few blocks from the entrance and the lines for the rides were tolerable, but the fair was definitely well attended.  I can’t imagine what it would have been like on a weekend.  In the five hours we had available, we concentrated on the carnival rides and exhibit halls (animals and shopping).  There was so much that we missed: special exhibits (Rain Forest Adventure, Our Bodies), free concerts and paid concerts by major national artists, the rodeo, Friday Night fireworks, Fiestas Patrias weekend, and much else.  It would have taken multiple visits (and a small fortune) to cover everything.  The highlights of our quick visit were:

• Gondola: We started with the gondola ride across the park, which gave us an understanding of how vast the Puyallup Fair is.
• Animal exhibits: We were there on sheep day.  We saw a wide variety of sheep.
• Animals of the World exhibit: zebra, ze-donk (zebra-donkey mix), exotic sheep and cattle, miniature horses, a camel, emus, baby kangaroos, llamas.
• Walking on Water: the rider sits, rolls, or attempts to stand inside a dry, plastic bubble, which floats and spins on a pool of water.
• Big Slide: giant, multi-lane slide you ride down on a burlap sack.
• Wooden Roller Coaster: Exciting roller coaster we rode twice.
• Exhibit Halls: We watched a demonstration of the most expensive cookware on Earth: $3,000+ for a complete set.  The sample food was worth the wait.
• Fair Food: We pigged out on cotton candy and an M&M covered caramel apple.
• Fair Toys: My little boy couldn’t wait for dark and the end of the Fair, when I promised him a double lightsaber with flashing lights.  (Surprisingly affordable.)

M&M Covered Caramel Apple (a healthy fruit)

Puyallup Fair Sheep

Big Bull at the Puyallup Fair

Puyallup Fair Ferris Wheel

Big Slide at the Puyallup Fair