Believe it or not, it isn’t easy sending out these emails.
First of course, I have to write them. That’s the easy part. Figuring out what I am going to write about, that’s the hard part. I spend the better part of the week, kicking around ideas, (or hoping that I get an idea) and usually write it on Saturday/Sunday. Once in a while I’ll have the idea set for the following week, like I was going to write about Short Sales today, having written about foreclosures last week, but I’m not in the mood. There is plenty of time after New Years to talk about how to survive these times that are affecting each and every one of us. I have a couple of really nice topics that I’m toying with for next week already.
But anyway, once it’s written, then I have to think about it, let is stew. Go out for a while, do something else, play spider solitaire, eat a meal, drink some Perrier. Then I read it again, then out loud, constantly editing, adding stuff, deleting stuff, until I’m past okay and am happy with what I’ve written.
Then I send it out to a couple of people for their grammatical, spelling, typographical, and editorial assistance and comments. One is my cousin Stuart, in California, and the other is my friend Jon Salmon. Thank you both. They take it very seriously, and are very strict about not letting me say something that could get me into trouble (content wise).
Now we’re back to the hard part again. Sending them out.
When I first started, I thought that I could just send them all out at once. Like an email.
Boy was I wrong.
Doesn’t work like that, at all.
At that time I had about 700 email addresses on my Microsoft Office Outlook 2007 program, so after I wrote my first email, - I clicked on all the names, and it didn’t go through. I got back notices that the emails didn’t reach the intended recipients with a bunch of different error codes that I had no idea what it meant.
I called my computer friend Al Russo, (Paper Solve) and he explained to me that the free services (Gmail, Verizon, AOL, etc.) limit the amount of emails that you can send out at one time.
So I tried sending them from AlanLasher@OurIslandRealEstate.com, a pay account, but that was even worse than the g-mail account. After consulting with our technical guy, and the domains tech support, I discovered that the Our Island Real Estate domain only allows 10 emails to be sent at a time. No wonder it took 9 hours to send out the emails.
So then I took my list and created “distribution lists” on my Outlook account, and kept them under about 50. I organized my list according to various categories, Builders, Trades, CPA’s, Health Care Providers, Bankers, Insurance Brokers, Architects’ & Engineers; my REO customers, etc. (Some of the categories are so large that I had to make multiples, like Lawyers A-G; H-M; N-R; S-Z)
Finally, I thought that I was home, but no, after a few emails, I received emails back, that some of the emails didn’t reach their intended recipients because I had exceeded the daily limit (500 emails per day). I didn’t know that I was limited to 500 emails per day, but I know that now.
I tried going to some of the online mail services, Constant Contact is one that you might hear advertising. Not a bad deal, it doesn’t cost much, they get the emails out, but…………..
I can’t just forward the email listings that I currently send out the way that they are, I have to make them fit into neat little packages that they have set up (templates).
Creating a bunch of email addresses seemed to be the answer. AlanLasherRealty@gmail.com; ALasherRealty@gmail.com; ADLasherRealty@gmail.com; LashersList@gmail.com; AlanLashersList@gmail.com; AlanDLashersList@gmail.com, etc. (pretty clever I say). That’s fine. Each email address can handle 500 emails per day. I have a sheet that I use that contains all of the distribution lists (categories), and I know that I can send just about half the list using one email, and the other half using the second email, (although the list is growing every day, I am up to almost 1200 names), but I don’t send every person every email. Realtors don’t get my foreclosure listings (after all does Macy’s tell Gimbel’s? Does anyone remember Gimbel’s?). (I live in a big old house near where Mr. Gimbel had his big old house, but I guess it wasn’t old when he lived in it).
Everything is fine, but sometimes I send the email’s out too quickly, and guess what- my account gets knocked off the air for 24 hours (can’t send), and I receive error messages, and the emails don’t go through.
Gmail tells me that they work very hard to fight spam. This not only includes spam coming into Gmail, but also spam being sent out from Gmail. Apparently they have filters that look for spam. One of the ways that they do it is looking for large mailings where the recipients are sent to cc/bcc recipients. (Other things that trip the spam filters are links to other sites and the word VIAGRA). So I’ve learned that I cannot send out the next batch, until a few minutes after the prior batch went through.
I called Leore, my graphics guy from the Bar Newsletter days, and it just so happens that he is also in the business of sending out multiple emails to people. He has proposed that I send him the listing, with the wording that I want, etc., and he’ll turn it into a package that can be sent out en masse…..for a fee.
So that’s where it stands right now.
Some of you must be saying, thank you spam control filters, and others are thinking, call Leore, get it going, so you can send us more emails every day.
Which are you?
…………………………to be continued
Monday, December 15, 2008
Sunday, December 7, 2008
So what's the deal with foreclosures anyway?
Back again.
Before I start to write about foreclosures, let’s understand that there are foreclosures in the foreclosure process, pre-foreclosures (which might involve short sales); active foreclosures: pending legal actions in the courts; post judgment foreclosures awaiting auctions and/or closings, etc. I will write about these another time.
Today I am going to write about the foreclosures where the legal process has been completed. Whoever owns the real estate, owns the real estate but since we really don’t know who really owns the real estate, suffice it to say that the homeowner is no longer the owner.
To get started, I went through every listing in the Multiple Listing Service (MLS), listing by listing (all 3000 of them) and printed out the listing’s that were: “bank owned” “REO” “corporate owned” or said “as is buyer to pay Transfer Taxes and Doc Stamps”. When I was finished, (about a year and a half ago) there were about 30 foreclosed properties for sale on Staten Island, in my loose leaf binder.
Today I went through all of the listings in my now much larger loose leaf binder (which by the way, I update as often as several times per day, to get the latest new listings, price changes, acceptances, sales, back on market, etc.), but instead of taking 5 days like the first time, it only took about an hour.
As of today (December 7, 2008) there are 123 active listings for bank owned real estate on the MLS of Staten Island. They consists of:
Condo’s: 9
1 families: 44 detached; 15 semi attached; 15 townhouses;
2 families: 27 detached; 7 semi-attached; 5 townhouses;
3 families: 1 detached
28: $ 79,900- $199,900.
50: $200,000- $299,900
27: $300,000- $399,900
18: $400,000- $725,000
The $79,000 is a detached one family in New Brighton- St. George; and the $725,000 is a detached one family in Pleasant Plaines.
The properties are located all over Staten Island, from St. George to Tottenville, and in most communities in between, but not all.
The bulk of the higher priced units, are on the South Shore, while the bulk of the homes under $300,000 are located on the North Shore and the beach areas (Midland, South, & New Dorp Beach).
No surprises here.
The real question is: are foreclosures good deals?
If you think because you have a lot of cash, and your offer is in cash, no mortgage contingency, close in two days, the bank is going to stop everything and embrace you, you are mistaken, especially if you low ball. The bank representatives’ have said to me- “everyone says that they are going to close in two days. “ Not to say that it doesn’t happen, sometimes these offers are accepted, especially after a couple of deals fall apart over financing.
The properties are being managed, (serviced) by servicing companies. (Remember- no one knows for sure who owns the property). These former mortgage underwriters, are now working in REO departments around the country selling making decisions on properties values based upon “BPO’s” (Broker Price Opinions- which are $50 “drive bys” which they bill the homeowner, and/or the bond owner $100 for). There is no accountability to the owners of the properties. There is only the pressure, as in all businesses to meet some sort of quota. (Even Judges have to “dispose of” a certain amount of cases every period or face the music).
So the question remains: can you get a good deal on a foreclosure?
I send out listings of foreclosures almost every day. This week I sent one out that stated that the particular listing was just about to hit the 6 month mark, and there had never been an acceptance on it. Perhaps this is one that you should look at immediately. (If you would like to receive every listing that I send, please email me).
A client of mine made an offer on a property in Port Richmond, six months ago, for $240,000, which was listed at $265,000 at the time, down from $299,900. I explained that this customer could only pay $240,000, that it was going to be her primary residence, etc. The bank stuck to $245,000. Two weeks later, I was informed that the person who rejected my $240,000 offer is no longer with there, and would my customer like the house for $240,000 (or less). My customer found something else in the meantime. Today the house is listed at $199,900.
Timing is very important to get a good deal. You never know when you submit an offer, whether the quarter is nearly up, whether the REO person just got hammered for not selling enough properties, or whatever other factors are involved.
So once again, can you get a good deal on a foreclosure?
Once the foreclosure is over, and possession obtained, the first thing the servicing company has to do is to get their “sure up and clean up people” in. This crew will drain the water from the pipes, shut the water in the street, and remove the water meter. They will remove the furniture, garbage, etc. Unfortunately many of these contractors that they use, cheat. Rather than gain access by opening up the doors properly, (ala Bobs Locksmith e.g.) and try to avoid damage, they just snap off the locks, usually damaging the front doors, especially metal doors. It is very common to walk into a foreclosure where the front door lock has been flung to the other side of the room. I’ve seen many dented doors. I’ve gone into numerous houses where there were radiators which were broken because someone smacked the corner with a big pipe wrench so that they could drain the system quicker- with no regard to the damage that it causes- ruining radiators, floors, carpets, paint jobs, etc.
Sometimes the servicing company will send in a crew to paint, scrape the floors, fix the plumbing, fix the cabinets, and install new carpeting. Especially in better neighborhoods.
And sometimes by the time even they get into the house, the pipes have already broken, and there is a tremendous amount of water damage, hardwood floors warped beyond recognition, mold. Sometimes the servicing companies are so grossed out that they won’t even remove the carpeting, and I’ve seen mushrooms growing out of carpeting.
And sometimes the house will get listed too cheap, and there will be numerous offers on the first day, often above the asking price. In this case, they either raise the price, or tell everyone that made an offer to submit their highest and best offer, and then the “pro’s” at the servicing company will make a decision. But what they don’t do, is tell everyone interested what the bidding is, so you can intelligently make your offer, creating an auction.
I have been in situations where my customer may have offered all cash, no mortgage contingency, submitted proof of the funds in a bank account, and they go with the person offering more money with 3% down payment. Very often in those situations the house comes back on the market. Sometimes they weigh the likelihood of the buyers being able to obtain financing against a lower all cash offer. But not every time.
Sooooooooo are foreclosures good deals?
Many foreclosures were properties that were the subject of fraudulent straw sales, like I described in one of my prior emails, and may have been abused due to lack of ownership supervision. Many foreclosures have been abandoned, taken over by squatters. Some foreclosures come on the market in beautiful perfect shape.
Yesterday I sent out a listing where only a temporary C of O was issued when the house was built, and it expired in 2000. The house has violations because it had been abandoned, and someone broke in, pulled cabinets off of the wall, and left the place open; and a violation for occupying without a property C of O. While I have not seen that particular house, I have been in many foreclosures that are total disasters, and require a lot of work. But just because a building is in serious disrepair, has zoning problems and/or violations, does not guarantee that you are going to get a good deal. But it could.
Last week I sent out a listing where the building was occupied by tenants in both apartments in a two family, and the sale was subject to their tenancy and their problems. I sent it out Attn: Low Ballers- Someone went to the property spoke to the tenants, and then offered full asking price- and they feel that they got a good deal.
So I guess the answer to the question is: Yes there are good deals to be made. If you are looking for a certain type of property, and one comes on the market that happens to be a foreclosure, you can make yourself a good deal. Although they aren’t giving anything away, and steals are few and far between, in order to get one, you have to act quickly and decisively, and/or be patient. But most importantly, a good deal is one where you feel you got a good deal.
……………………………………to be continued
Before I start to write about foreclosures, let’s understand that there are foreclosures in the foreclosure process, pre-foreclosures (which might involve short sales); active foreclosures: pending legal actions in the courts; post judgment foreclosures awaiting auctions and/or closings, etc. I will write about these another time.
Today I am going to write about the foreclosures where the legal process has been completed. Whoever owns the real estate, owns the real estate but since we really don’t know who really owns the real estate, suffice it to say that the homeowner is no longer the owner.
To get started, I went through every listing in the Multiple Listing Service (MLS), listing by listing (all 3000 of them) and printed out the listing’s that were: “bank owned” “REO” “corporate owned” or said “as is buyer to pay Transfer Taxes and Doc Stamps”. When I was finished, (about a year and a half ago) there were about 30 foreclosed properties for sale on Staten Island, in my loose leaf binder.
Today I went through all of the listings in my now much larger loose leaf binder (which by the way, I update as often as several times per day, to get the latest new listings, price changes, acceptances, sales, back on market, etc.), but instead of taking 5 days like the first time, it only took about an hour.
As of today (December 7, 2008) there are 123 active listings for bank owned real estate on the MLS of Staten Island. They consists of:
Condo’s: 9
1 families: 44 detached; 15 semi attached; 15 townhouses;
2 families: 27 detached; 7 semi-attached; 5 townhouses;
3 families: 1 detached
28: $ 79,900- $199,900.
50: $200,000- $299,900
27: $300,000- $399,900
18: $400,000- $725,000
The $79,000 is a detached one family in New Brighton- St. George; and the $725,000 is a detached one family in Pleasant Plaines.
The properties are located all over Staten Island, from St. George to Tottenville, and in most communities in between, but not all.
The bulk of the higher priced units, are on the South Shore, while the bulk of the homes under $300,000 are located on the North Shore and the beach areas (Midland, South, & New Dorp Beach).
No surprises here.
The real question is: are foreclosures good deals?
If you think because you have a lot of cash, and your offer is in cash, no mortgage contingency, close in two days, the bank is going to stop everything and embrace you, you are mistaken, especially if you low ball. The bank representatives’ have said to me- “everyone says that they are going to close in two days. “ Not to say that it doesn’t happen, sometimes these offers are accepted, especially after a couple of deals fall apart over financing.
The properties are being managed, (serviced) by servicing companies. (Remember- no one knows for sure who owns the property). These former mortgage underwriters, are now working in REO departments around the country selling making decisions on properties values based upon “BPO’s” (Broker Price Opinions- which are $50 “drive bys” which they bill the homeowner, and/or the bond owner $100 for). There is no accountability to the owners of the properties. There is only the pressure, as in all businesses to meet some sort of quota. (Even Judges have to “dispose of” a certain amount of cases every period or face the music).
So the question remains: can you get a good deal on a foreclosure?
I send out listings of foreclosures almost every day. This week I sent one out that stated that the particular listing was just about to hit the 6 month mark, and there had never been an acceptance on it. Perhaps this is one that you should look at immediately. (If you would like to receive every listing that I send, please email me).
A client of mine made an offer on a property in Port Richmond, six months ago, for $240,000, which was listed at $265,000 at the time, down from $299,900. I explained that this customer could only pay $240,000, that it was going to be her primary residence, etc. The bank stuck to $245,000. Two weeks later, I was informed that the person who rejected my $240,000 offer is no longer with there, and would my customer like the house for $240,000 (or less). My customer found something else in the meantime. Today the house is listed at $199,900.
Timing is very important to get a good deal. You never know when you submit an offer, whether the quarter is nearly up, whether the REO person just got hammered for not selling enough properties, or whatever other factors are involved.
So once again, can you get a good deal on a foreclosure?
Once the foreclosure is over, and possession obtained, the first thing the servicing company has to do is to get their “sure up and clean up people” in. This crew will drain the water from the pipes, shut the water in the street, and remove the water meter. They will remove the furniture, garbage, etc. Unfortunately many of these contractors that they use, cheat. Rather than gain access by opening up the doors properly, (ala Bobs Locksmith e.g.) and try to avoid damage, they just snap off the locks, usually damaging the front doors, especially metal doors. It is very common to walk into a foreclosure where the front door lock has been flung to the other side of the room. I’ve seen many dented doors. I’ve gone into numerous houses where there were radiators which were broken because someone smacked the corner with a big pipe wrench so that they could drain the system quicker- with no regard to the damage that it causes- ruining radiators, floors, carpets, paint jobs, etc.
Sometimes the servicing company will send in a crew to paint, scrape the floors, fix the plumbing, fix the cabinets, and install new carpeting. Especially in better neighborhoods.
And sometimes by the time even they get into the house, the pipes have already broken, and there is a tremendous amount of water damage, hardwood floors warped beyond recognition, mold. Sometimes the servicing companies are so grossed out that they won’t even remove the carpeting, and I’ve seen mushrooms growing out of carpeting.
And sometimes the house will get listed too cheap, and there will be numerous offers on the first day, often above the asking price. In this case, they either raise the price, or tell everyone that made an offer to submit their highest and best offer, and then the “pro’s” at the servicing company will make a decision. But what they don’t do, is tell everyone interested what the bidding is, so you can intelligently make your offer, creating an auction.
I have been in situations where my customer may have offered all cash, no mortgage contingency, submitted proof of the funds in a bank account, and they go with the person offering more money with 3% down payment. Very often in those situations the house comes back on the market. Sometimes they weigh the likelihood of the buyers being able to obtain financing against a lower all cash offer. But not every time.
Sooooooooo are foreclosures good deals?
Many foreclosures were properties that were the subject of fraudulent straw sales, like I described in one of my prior emails, and may have been abused due to lack of ownership supervision. Many foreclosures have been abandoned, taken over by squatters. Some foreclosures come on the market in beautiful perfect shape.
Yesterday I sent out a listing where only a temporary C of O was issued when the house was built, and it expired in 2000. The house has violations because it had been abandoned, and someone broke in, pulled cabinets off of the wall, and left the place open; and a violation for occupying without a property C of O. While I have not seen that particular house, I have been in many foreclosures that are total disasters, and require a lot of work. But just because a building is in serious disrepair, has zoning problems and/or violations, does not guarantee that you are going to get a good deal. But it could.
Last week I sent out a listing where the building was occupied by tenants in both apartments in a two family, and the sale was subject to their tenancy and their problems. I sent it out Attn: Low Ballers- Someone went to the property spoke to the tenants, and then offered full asking price- and they feel that they got a good deal.
So I guess the answer to the question is: Yes there are good deals to be made. If you are looking for a certain type of property, and one comes on the market that happens to be a foreclosure, you can make yourself a good deal. Although they aren’t giving anything away, and steals are few and far between, in order to get one, you have to act quickly and decisively, and/or be patient. But most importantly, a good deal is one where you feel you got a good deal.
……………………………………to be continued
Sunday, November 30, 2008
What ever became of the numbers game?
Hello again
Did you ever wonder about what became of the old numbers game?
Used to be that there were a bunch of characters who had regular routes, like the milk man. Except these guys were selling something more important than milk: Hope- and it only cost a dollar.
I had a friend who was a numbers guy, Richie. He worked some of the auto body shops, and junk yards in Mariners Harbor and Port Richmond. His biggest stop was Proctor and Gamble (P&G). I wonder how many people reading this even know that P&G used to be on Staten Island. That’s why its called Port Ivory- (Ivory Snow). When you were a kid, you took a tour with your class and at the end, they gave you broken pieces of soap, stuff they couldn’t sell, to take home. Lots of people on Staten Island got rich working for P&G, buying stock options, and dividend reinvestments.
Wednesday, my uncle Jason, who is now 81, paid us a visit, from Florida (Thursday with his kids, Friday with hers). While he was here we looked at old photographs, and amongst them were me at various stages of my life: Me fat, Me thin, Me with long hair, Me skinny, me obese, etc.
Anyway, in 1980, I had gone on one of the great diets of my life, Essex Weight Loss Center on Hylan Blvd (which was an early form of Optifast, but in cherry, and orange flavors instead of vanilla and chocolate) where I lost about 60 pounds. Fran Reali was the receptionist (skinny little thing that she was).
When I completed my weight loss, and was svelte, I went out and bought myself a brand new 1981 Red Corvette. My first new car. I was so proud. The day I got it I saw Richie at a meeting that we used to attend together. He asked me for the dealers number that came with the car (the paper thing that hangs on the rear view mirror), so I gave it to him, and then he told me to give him $5. Which I did.
Apparently what I did was box the number of my car (played all of the different combinations of the 3 numbers).
Anyway, the next time I saw Richie, he gave me $250- I won $250 (I really don’t know how they figured out how much I had won, but hey). I had only played the numbers that one time, and I won. I am the only person that I ever heard of that only played the numbers once, and won. I beat the system, and the organization that ran it.
So what every happened to the numbers?
Proctor & Gamble closed their Staten Island operation and moved to the South West.
The Lottery finally woke up and started creating new games, to compete with the Numbers. A more reliable payer, but doesn’t extend credit. The mob downsized their operation, to its present form, whatever that is.
And Richie bought a building and opened a deli, and continued selling hopes and dreams; with ham and cheese.
…………………to be continued
Did you ever wonder about what became of the old numbers game?
Used to be that there were a bunch of characters who had regular routes, like the milk man. Except these guys were selling something more important than milk: Hope- and it only cost a dollar.
I had a friend who was a numbers guy, Richie. He worked some of the auto body shops, and junk yards in Mariners Harbor and Port Richmond. His biggest stop was Proctor and Gamble (P&G). I wonder how many people reading this even know that P&G used to be on Staten Island. That’s why its called Port Ivory- (Ivory Snow). When you were a kid, you took a tour with your class and at the end, they gave you broken pieces of soap, stuff they couldn’t sell, to take home. Lots of people on Staten Island got rich working for P&G, buying stock options, and dividend reinvestments.
Wednesday, my uncle Jason, who is now 81, paid us a visit, from Florida (Thursday with his kids, Friday with hers). While he was here we looked at old photographs, and amongst them were me at various stages of my life: Me fat, Me thin, Me with long hair, Me skinny, me obese, etc.
Anyway, in 1980, I had gone on one of the great diets of my life, Essex Weight Loss Center on Hylan Blvd (which was an early form of Optifast, but in cherry, and orange flavors instead of vanilla and chocolate) where I lost about 60 pounds. Fran Reali was the receptionist (skinny little thing that she was).
When I completed my weight loss, and was svelte, I went out and bought myself a brand new 1981 Red Corvette. My first new car. I was so proud. The day I got it I saw Richie at a meeting that we used to attend together. He asked me for the dealers number that came with the car (the paper thing that hangs on the rear view mirror), so I gave it to him, and then he told me to give him $5. Which I did.
Apparently what I did was box the number of my car (played all of the different combinations of the 3 numbers).
Anyway, the next time I saw Richie, he gave me $250- I won $250 (I really don’t know how they figured out how much I had won, but hey). I had only played the numbers that one time, and I won. I am the only person that I ever heard of that only played the numbers once, and won. I beat the system, and the organization that ran it.
So what every happened to the numbers?
Proctor & Gamble closed their Staten Island operation and moved to the South West.
The Lottery finally woke up and started creating new games, to compete with the Numbers. A more reliable payer, but doesn’t extend credit. The mob downsized their operation, to its present form, whatever that is.
And Richie bought a building and opened a deli, and continued selling hopes and dreams; with ham and cheese.
…………………to be continued
Sunday, November 23, 2008
So who is Alan Lasher and why is he sending me all of these emails?
Hello again.
This is the email where I talk about myself.
I am Alan Lasher. I am a 4th generation Staten Islander, Licensed Real Estate Broker in New York and New Jersey, in the same building where my family operated the Meiers Corners Department Store.
I come from a very civic minded family. My mother, Audrey Lasher, was a Staten Island Advance Woman of Achievement; and the Deputy Commissioner of the NYC Dept of Ports and Terminals.
My father, Richard Lasher, was one of the founders of the Mid Island Little League, and the South Shore Swim Club, but his favorite cause was the Richmond County Bar Association which he single-handedly ran for decades.
My parents were recently written up in the Memories column of the Sunday Staten Island Advance-
Remembering ...
When my father had a stroke in 1987, I continued to “ghost write" the Bar Association Newsletter under his name for 8 years, and for another 8 years after he died using my own byline. I am especially proud of the issue that I wrote right after September 11, 2001.
http://www.richmondcountybar.org/newsletter/pdf/fall2001.pdf
I miss writing, and that’s why I came up with Lasher's List.
Anyway, I have been in the Real Estate Business for the past 30 years, having developed numerous parcels of vacant land; built new homes and renovated many buildings, and received numerous building awards, and accolades
I don't accept NO as an answer when I think the answer should be something else. I don't accept that you can't do something, when I think that you should be able to. I have taken on numerous projects, and obtained approvals, after everyone else had given up after hitting stone walls.
Many say that I single handedly turned Westerleigh around when I rehabilitated the stores 264-286 Watchogue Road in 1985 & 1986. It took years to get the project started because the architects and contractors said to forget about it, or I was told to just tear it down and start over again.
After the rehabilitation of 264-286 Watchogue Road virtually every house in a two block radius was renovated. Channel 5 called it non-governmental urban renewal.
Meanwhile at the end of the 80’s/early 90’s, some of you may remember there was a real estate crash. So many banks failed that the government started the RTC (Resolution Trust Corp) to handle to sale of the assets of the banks that went under, and the properties being foreclosed. Staten Island lost two local banks: Westerleigh Savings & Loan, and Community National Bank. The price of homes fell dramatically for the first time in anyone’s memory. The short sale was developed to help people who owed more than their houses were worth.
The price of real estate fell everywhere- except Westerleigh- where the price of homes remained steady, or rose.
Anyway, that’s about enough of me.
So here is a little tidbit:
100 years ago or so when people gave directions through Westerleigh, there was a huge Oak Tree that was the landmark. Directions would be to Watch for the Oak Tree- over time Watch Oak became Watchogue Road.*
So stay tuned for more interesting useful and useless information to entertain, educate, and inform.
Please feel free to send in any questions about anything that you may have, if I don’t know the answer I will find it out, especially about Real Estate.
Thanks for listening, see you next time.
……………………..to be continued
This is the email where I talk about myself.
I am Alan Lasher. I am a 4th generation Staten Islander, Licensed Real Estate Broker in New York and New Jersey, in the same building where my family operated the Meiers Corners Department Store.
I come from a very civic minded family. My mother, Audrey Lasher, was a Staten Island Advance Woman of Achievement; and the Deputy Commissioner of the NYC Dept of Ports and Terminals.
My father, Richard Lasher, was one of the founders of the Mid Island Little League, and the South Shore Swim Club, but his favorite cause was the Richmond County Bar Association which he single-handedly ran for decades.
My parents were recently written up in the Memories column of the Sunday Staten Island Advance-
Remembering ...
When my father had a stroke in 1987, I continued to “ghost write" the Bar Association Newsletter under his name for 8 years, and for another 8 years after he died using my own byline. I am especially proud of the issue that I wrote right after September 11, 2001.
http://www.richmondcountybar.org/newsletter/pdf/fall2001.pdf
I miss writing, and that’s why I came up with Lasher's List.
Anyway, I have been in the Real Estate Business for the past 30 years, having developed numerous parcels of vacant land; built new homes and renovated many buildings, and received numerous building awards, and accolades
I don't accept NO as an answer when I think the answer should be something else. I don't accept that you can't do something, when I think that you should be able to. I have taken on numerous projects, and obtained approvals, after everyone else had given up after hitting stone walls.
Many say that I single handedly turned Westerleigh around when I rehabilitated the stores 264-286 Watchogue Road in 1985 & 1986. It took years to get the project started because the architects and contractors said to forget about it, or I was told to just tear it down and start over again.
After the rehabilitation of 264-286 Watchogue Road virtually every house in a two block radius was renovated. Channel 5 called it non-governmental urban renewal.
Meanwhile at the end of the 80’s/early 90’s, some of you may remember there was a real estate crash. So many banks failed that the government started the RTC (Resolution Trust Corp) to handle to sale of the assets of the banks that went under, and the properties being foreclosed. Staten Island lost two local banks: Westerleigh Savings & Loan, and Community National Bank. The price of homes fell dramatically for the first time in anyone’s memory. The short sale was developed to help people who owed more than their houses were worth.
The price of real estate fell everywhere- except Westerleigh- where the price of homes remained steady, or rose.
Anyway, that’s about enough of me.
So here is a little tidbit:
100 years ago or so when people gave directions through Westerleigh, there was a huge Oak Tree that was the landmark. Directions would be to Watch for the Oak Tree- over time Watch Oak became Watchogue Road.*
So stay tuned for more interesting useful and useless information to entertain, educate, and inform.
Please feel free to send in any questions about anything that you may have, if I don’t know the answer I will find it out, especially about Real Estate.
Thanks for listening, see you next time.
……………………..to be continued
Wednesday, November 12, 2008
So what happens now?
It seems that every day's headlines are just chock full of crisis: the Dow and the S & P are dropping because investors are worried about the crisis, and the foreign exchanges and the global markets are on a roller coaster ride; unemployment; the interest rates; number of foreclosures; the MTA; GM, FORD & Chrysler; Monthly and quarterly profit reports; executive salaries and bonus’s and golden parachutes; and on and on with more and more Doom and Gloom. The naysayers are saying that this is just the beginning and that the hard times haven’t even begun yet.
And maybe they are right.
Happy Thanksgiving.
And then there are the blamers, finger pointers, fault finders, name callers, and of course the media. They are really going to have a field day once the Congressional hearings; Attorney General Investigations; and Indictments begin. More important to find someone to blame than to find a solution.
The economic crisis-- the chaos and turmoil -- has affected each and every one of us. Some of us are having trouble paying our mortgages...or have stopped paying our mortgages. Some of us can’t pay our credit cards; and, to add insult to injury, the banks have cut our credit limits that we worked so hard to get even though we are current and never late, (and they have raised the interest rate to boot!). (And we are going to bail out American Express). A friend of mine who owns a restaurant told me that the pharmaceutical reps have lost their expense accounts, so the free lunches for doctors have ended at the hospitals, and his restaurant has lost 10% of its business from this alone.
But today is my birthday; and notwithstanding the headlines, I am having a really great day, and so I decided that I want to share with you my thoughts on: What happens now?
First and foremost:
Life will go on!
People are still going to get married and divorced.
New people are going to be born, and old people (and some not old enough) are going to die.
The Yankees and the Mets are going to bring us baseball from new stadiums next season.
The rich will get richer and the poor will get poorer.
Some of us will lose our jobs, and our homes, our businesses will lose some customers. Some of our tenants and clients and customers won't be able to pay their bills.
All of us will adapt and do what we have to do.
And Life will go on.
We are all in this together, and I am here for every one of you.
And Lasher’s List is going to be the glue to help hold it all together.
I hereby launch, Lasher’s List, on this my 58th birthday (I know you were all dying to know), as a place that you can count on to get a periodic fix, at no charge, of truth, entertainment, fun...and useful and useless information.
I’ll tell you about me.
You are going to be educated, and entertained by my vast knowledge, investigative skills and extensive research on all sorts of issues affecting Staten Island. I am going to find out what is really going on with some of the places that we drive by every day and some of the so-called "big deals" we’ve heard about. I’ll tell you about recent sales and what things rent for and what things cost to fix.
I have created a blog at Google where I will post this today. It contains all of the emails that I have already sent (not the listings showing properties). With this blog I shall be able to answer your questions; and, if I don't know the answer, I promise to find the answer! Just click on the blog's address below, and you'll get there! (In a future email I will describe the trials and tribulations of sending out multiple emails at one time, and why you probably didn’t get this email today. I will share this information with you as I discover it, and together we will all become more blog savvy)
http://lasherslist.blogspot.com/
But anyway, we and our world have entered into hard times. Many of you may remember the early 90’s, some of you may remember the late 70’s, and maybe a few of you the 30’s. But, together, we are going to witness and participate in this round, and I am going to point out the opportunities that arise, and how to take advantage of them, and how and why not to brood and cry.
Some people see problems in opportunities, and some people see opportunities in problems*. The general theme and tone of this “blog” will be to find the opportunities within the problems, and to have a good time doing it.
So welcome aboard, and remember, if you know anyone who would like to be receiving these, please send me their email address, so they can be added to Lasher's List.
……………………to be continued
*I saw this the other day, it grabbed my attention, but I can’t remember where I saw it and to whom to give credit. When I find out who said it, I will post it on my Blog
And maybe they are right.
Happy Thanksgiving.
And then there are the blamers, finger pointers, fault finders, name callers, and of course the media. They are really going to have a field day once the Congressional hearings; Attorney General Investigations; and Indictments begin. More important to find someone to blame than to find a solution.
The economic crisis-- the chaos and turmoil -- has affected each and every one of us. Some of us are having trouble paying our mortgages...or have stopped paying our mortgages. Some of us can’t pay our credit cards; and, to add insult to injury, the banks have cut our credit limits that we worked so hard to get even though we are current and never late, (and they have raised the interest rate to boot!). (And we are going to bail out American Express). A friend of mine who owns a restaurant told me that the pharmaceutical reps have lost their expense accounts, so the free lunches for doctors have ended at the hospitals, and his restaurant has lost 10% of its business from this alone.
But today is my birthday; and notwithstanding the headlines, I am having a really great day, and so I decided that I want to share with you my thoughts on: What happens now?
First and foremost:
Life will go on!
People are still going to get married and divorced.
New people are going to be born, and old people (and some not old enough) are going to die.
The Yankees and the Mets are going to bring us baseball from new stadiums next season.
The rich will get richer and the poor will get poorer.
Some of us will lose our jobs, and our homes, our businesses will lose some customers. Some of our tenants and clients and customers won't be able to pay their bills.
All of us will adapt and do what we have to do.
And Life will go on.
We are all in this together, and I am here for every one of you.
And Lasher’s List is going to be the glue to help hold it all together.
I hereby launch, Lasher’s List, on this my 58th birthday (I know you were all dying to know), as a place that you can count on to get a periodic fix, at no charge, of truth, entertainment, fun...and useful and useless information.
I’ll tell you about me.
You are going to be educated, and entertained by my vast knowledge, investigative skills and extensive research on all sorts of issues affecting Staten Island. I am going to find out what is really going on with some of the places that we drive by every day and some of the so-called "big deals" we’ve heard about. I’ll tell you about recent sales and what things rent for and what things cost to fix.
I have created a blog at Google where I will post this today. It contains all of the emails that I have already sent (not the listings showing properties). With this blog I shall be able to answer your questions; and, if I don't know the answer, I promise to find the answer! Just click on the blog's address below, and you'll get there! (In a future email I will describe the trials and tribulations of sending out multiple emails at one time, and why you probably didn’t get this email today. I will share this information with you as I discover it, and together we will all become more blog savvy)
http://lasherslist.blogspot.com/
But anyway, we and our world have entered into hard times. Many of you may remember the early 90’s, some of you may remember the late 70’s, and maybe a few of you the 30’s. But, together, we are going to witness and participate in this round, and I am going to point out the opportunities that arise, and how to take advantage of them, and how and why not to brood and cry.
Some people see problems in opportunities, and some people see opportunities in problems*. The general theme and tone of this “blog” will be to find the opportunities within the problems, and to have a good time doing it.
So welcome aboard, and remember, if you know anyone who would like to be receiving these, please send me their email address, so they can be added to Lasher's List.
……………………to be continued
*I saw this the other day, it grabbed my attention, but I can’t remember where I saw it and to whom to give credit. When I find out who said it, I will post it on my Blog
Friday, November 7, 2008
What is this financial crisis about anyway?
So when the real estate market was good, people bought houses, got mortgages, and closed.
The mortgage brokers got paid. The banks got paid.
Wall Street came up with Mortgage Backed Securities (MBS’s), and made a killing. They even had their own mortgage banks to make the loans.
The bonds were sold to foreigners and foreign governments, and Wall Street made a lot of money selling the loans/bonds.
Now here is where I get confused! People started defaulting on these subprime mortgages, and the value of the bonds went down. Wall Street wrote down their lost value (in some cases by billions of dollars), which was a tax savings used to offset their billions made in profit. Easy!
What do we care if foreign investors lose money? When the bonds were purchased they were paid for in cash. Even if Wall Street invested their own money, along with their clients’ money and the bonds lost value, they were paid for. So what’s the problem?
When Junk Bonds went bad, some people sold them at discounted prices; and the big guys bought them and eventually made home runs. No one expected the government to step in.
With the dot coms, the stock prices jumped through the roof, until reality set in and we realized that some of these companies weren’t making profits and wouldn’t for years, if ever. All of a sudden the price of the dot com stocks crashed. No one expected the government to step in.
So why did we have to bail out Wall Street?
Maybe Wall Street realized that they had "screwed up", and that they were worried about scandals, and losses, and indictments, so they needed to create a smoke screen to hide behind? Could it be that the billions of shares of stock traded every day are merely stock manipulations to generate commissions, and/or to create a crisis according to a secret agenda?
The Treasury Secretary and former managing partner of Goldman Sachs (who I’m sure owns hundreds of millions of dollars worth of their stock and/or partnerships) said, “Let's buy the "toxic bonds" so poor Wall Street doesn't have a problem.” The Bush Administration, who had already given away the store to the very rich, was consistent- anything to help the very rich, because then it would trickle down to everyone else. Yeah, right!
Or could it be that they were worried about their end-of-the-year bonuses? Thanks to the perceived crisis due to stock manipulation, Wall Street was able to fire thousands of employees and cut overhead, so that the billions of dollars in savings could be used where it's most needed - as end-of-the- year bonuses.
…………………to be continued
The mortgage brokers got paid. The banks got paid.
Wall Street came up with Mortgage Backed Securities (MBS’s), and made a killing. They even had their own mortgage banks to make the loans.
The bonds were sold to foreigners and foreign governments, and Wall Street made a lot of money selling the loans/bonds.
Now here is where I get confused! People started defaulting on these subprime mortgages, and the value of the bonds went down. Wall Street wrote down their lost value (in some cases by billions of dollars), which was a tax savings used to offset their billions made in profit. Easy!
What do we care if foreign investors lose money? When the bonds were purchased they were paid for in cash. Even if Wall Street invested their own money, along with their clients’ money and the bonds lost value, they were paid for. So what’s the problem?
When Junk Bonds went bad, some people sold them at discounted prices; and the big guys bought them and eventually made home runs. No one expected the government to step in.
With the dot coms, the stock prices jumped through the roof, until reality set in and we realized that some of these companies weren’t making profits and wouldn’t for years, if ever. All of a sudden the price of the dot com stocks crashed. No one expected the government to step in.
So why did we have to bail out Wall Street?
Maybe Wall Street realized that they had "screwed up", and that they were worried about scandals, and losses, and indictments, so they needed to create a smoke screen to hide behind? Could it be that the billions of shares of stock traded every day are merely stock manipulations to generate commissions, and/or to create a crisis according to a secret agenda?
The Treasury Secretary and former managing partner of Goldman Sachs (who I’m sure owns hundreds of millions of dollars worth of their stock and/or partnerships) said, “Let's buy the "toxic bonds" so poor Wall Street doesn't have a problem.” The Bush Administration, who had already given away the store to the very rich, was consistent- anything to help the very rich, because then it would trickle down to everyone else. Yeah, right!
Or could it be that they were worried about their end-of-the-year bonuses? Thanks to the perceived crisis due to stock manipulation, Wall Street was able to fire thousands of employees and cut overhead, so that the billions of dollars in savings could be used where it's most needed - as end-of-the- year bonuses.
…………………to be continued
Wednesday, October 15, 2008
Organized Crime's role in the Financial Melt Down
Not to be outdone by Wall Street, Organized Crime positioned themselves to get a piece of the sub-prime mortgage action too.
When the easy money loans started, the idea was good. Poor people were going to be able to buy a home- The American Dream realized. Unfortunately greed has a nasty way of rearing its ugly little head into even the most well intentioned plans.
At the beginning of the real estate boom, you had to have stellar credit (High700 FICO scores) to be able to get 100% financing. (Close on a 80% first mortgage, and a 20% equity loan, from the same bank, simultaneously).
As the boom heated up, the Global Economy roared, (especially the Asian markets), and Cash rich foreign investors, turned to Wall Street to find them safe havens to park their money. Wall Street created the Market Backed Securities (MBS's). As the demand (and profits) grew, the criteria to obtain the mortgages loosened, as Wall Street opened their doors wide to encourage real estate borrowing. Programs were created including 100%-120% loan to value financing; Negative amortization loans (you pay part of the interest and what you don't pay gets added to the principal); Interest only loans. No documentation loans. No income No credit loans. No closing costs loans; or you could finance them. The higher the points and interest rates, the more you could borrow. (Remember this is a story about greed). It got to the point that all you had to do to get a mortgage on real estate was have a photo id and breathe.
But seriously, and this is very serious, fueled by the upward real estate market, the ease of borrowing, Wall Streets' greed, willing participants, Organized Crime of several different ethnic persuasions, and national origins, seized upon the opportunity to get into the game and they created a cottage industry for themselves.
Organized Crime began manufacturing “Straw Buyers”.
People with no jobs, no credit histories, no visible means of support, were turned into documented upstanding, taxpaying, credit worthy home buyers and borrowers.
The process of creating "straws" was really quite simple.
The first step was to deposit money into a bank account in the "straws" name. Banks don't care where the money comes from, just that it exists, and is verifiable with 3-6 months bank statements.
Next step was to get a job for the straw. Rather than create jobs, they created Straw Companies- companies that had telephone numbers and addresses that could be verified. It could be an office or a storefront anywhere with a lot of phone numbers and a lot of signs in front. Once the Straw Companies are "in business" it was easy to verify employment.
Now they had to find some real estate. This was easy. Find a builder with units that weren’t selling. Buy in depressed areas. Buy the last couple of units in a job, buy the houses that had problems, doesn’t get the sun, gets too much sun, the one that gets all of the noise from the highway. Pay the builders full asking price, maybe more (maybe less). You get the picture. The builder or the broker are only too happy to sell the units. So happy in fact that they will enter into a contract where the buyer is allowed to re-sell to a third party (The Straw), at higher prices, no or small down payments, etc.
Next they had to hire the right mortgage broker/bank. The mortgage broker is responsible for verifying the employment, the contract deposit (which previously had been deposited into an account in the straws name), the tax returns, current living expenses, etc, and has to find the loan. It is the mortgage broker that hires the appraiser that is going to bring the loan in at the right price.
Mortgage brokers/banks guarantee loans that they sell to the Banks. If the loan defaults during this period, the mortgage broker has to buy back the loan, or make those payments. This period is usually a year.
When I look at the foreclosure files at the Richmond County Clerk's Office, it is hard not to notice that the dates of the commencement of the action, and the dates of the actual signing of the mortgage are not that far apart. It's just incredible that in so many foreclosures- No payments were ever made.
American Home was a Mortgage Bank which is the same as a broker basically except that they have a warehouse line which allows them to close now place the loan later. They were forced to buy back a couple of million in bad paper (defaulted within a year) and then their lines were frozen forcing them to go out of business. (Not so innocent victims).
The appraiser had to bring the house in for much more than its asking price. Appraisers were happy because they were working regularly. The realtor, the builder and the lawyer had to not ask too many questions. Finally there is the buyer -the "straw".
I’ve often wondered what the Straw Man gets. Live in the house without making payments until the post foreclosure ejectment action for possession? Think that there was word of mouth advertising in certain neighborhoods- “Live free for a year in a new house, just sign the papers"
Last year, when the “Sub-Prime Mortgage Market” started to crash, the media’s hype was to blame it on the interest rates going up on the adjustable mortgages. And that probably did affect some of the people. And of course there are/were too many people who were living way over their heads, and constantly refinancing in an upward market, using their equity to carry the monkey.
But I have never heard a report that attributed any blame for the crash of the real estate markets like Florida, Texas, Nevada, nor a little closer in areas like Mariners Harbor and Port Richmond to fraud and/or Organized Crime.
Certainly neither SIBOR, The Staten Island Advance, nor the Richmond County Clerk's Office, kept track of straw loans. But it is interesting to wonder how big a role Organized Crime played in the crash of the sub-prime mortgage market? and if that is why Staten Island have one of the highest per capita rates of foreclosures in the Country?
(I have no actual firsthand knowledge of any transaction, nor of any participant (knowingly or not) in any such fraudulent or illegal transaction or scheme).
………..to be continued
When the easy money loans started, the idea was good. Poor people were going to be able to buy a home- The American Dream realized. Unfortunately greed has a nasty way of rearing its ugly little head into even the most well intentioned plans.
At the beginning of the real estate boom, you had to have stellar credit (High700 FICO scores) to be able to get 100% financing. (Close on a 80% first mortgage, and a 20% equity loan, from the same bank, simultaneously).
As the boom heated up, the Global Economy roared, (especially the Asian markets), and Cash rich foreign investors, turned to Wall Street to find them safe havens to park their money. Wall Street created the Market Backed Securities (MBS's). As the demand (and profits) grew, the criteria to obtain the mortgages loosened, as Wall Street opened their doors wide to encourage real estate borrowing. Programs were created including 100%-120% loan to value financing; Negative amortization loans (you pay part of the interest and what you don't pay gets added to the principal); Interest only loans. No documentation loans. No income No credit loans. No closing costs loans; or you could finance them. The higher the points and interest rates, the more you could borrow. (Remember this is a story about greed). It got to the point that all you had to do to get a mortgage on real estate was have a photo id and breathe.
But seriously, and this is very serious, fueled by the upward real estate market, the ease of borrowing, Wall Streets' greed, willing participants, Organized Crime of several different ethnic persuasions, and national origins, seized upon the opportunity to get into the game and they created a cottage industry for themselves.
Organized Crime began manufacturing “Straw Buyers”.
People with no jobs, no credit histories, no visible means of support, were turned into documented upstanding, taxpaying, credit worthy home buyers and borrowers.
The process of creating "straws" was really quite simple.
The first step was to deposit money into a bank account in the "straws" name. Banks don't care where the money comes from, just that it exists, and is verifiable with 3-6 months bank statements.
Next step was to get a job for the straw. Rather than create jobs, they created Straw Companies- companies that had telephone numbers and addresses that could be verified. It could be an office or a storefront anywhere with a lot of phone numbers and a lot of signs in front. Once the Straw Companies are "in business" it was easy to verify employment.
Now they had to find some real estate. This was easy. Find a builder with units that weren’t selling. Buy in depressed areas. Buy the last couple of units in a job, buy the houses that had problems, doesn’t get the sun, gets too much sun, the one that gets all of the noise from the highway. Pay the builders full asking price, maybe more (maybe less). You get the picture. The builder or the broker are only too happy to sell the units. So happy in fact that they will enter into a contract where the buyer is allowed to re-sell to a third party (The Straw), at higher prices, no or small down payments, etc.
Next they had to hire the right mortgage broker/bank. The mortgage broker is responsible for verifying the employment, the contract deposit (which previously had been deposited into an account in the straws name), the tax returns, current living expenses, etc, and has to find the loan. It is the mortgage broker that hires the appraiser that is going to bring the loan in at the right price.
Mortgage brokers/banks guarantee loans that they sell to the Banks. If the loan defaults during this period, the mortgage broker has to buy back the loan, or make those payments. This period is usually a year.
When I look at the foreclosure files at the Richmond County Clerk's Office, it is hard not to notice that the dates of the commencement of the action, and the dates of the actual signing of the mortgage are not that far apart. It's just incredible that in so many foreclosures- No payments were ever made.
American Home was a Mortgage Bank which is the same as a broker basically except that they have a warehouse line which allows them to close now place the loan later. They were forced to buy back a couple of million in bad paper (defaulted within a year) and then their lines were frozen forcing them to go out of business. (Not so innocent victims).
The appraiser had to bring the house in for much more than its asking price. Appraisers were happy because they were working regularly. The realtor, the builder and the lawyer had to not ask too many questions. Finally there is the buyer -the "straw".
I’ve often wondered what the Straw Man gets. Live in the house without making payments until the post foreclosure ejectment action for possession? Think that there was word of mouth advertising in certain neighborhoods- “Live free for a year in a new house, just sign the papers"
Last year, when the “Sub-Prime Mortgage Market” started to crash, the media’s hype was to blame it on the interest rates going up on the adjustable mortgages. And that probably did affect some of the people. And of course there are/were too many people who were living way over their heads, and constantly refinancing in an upward market, using their equity to carry the monkey.
But I have never heard a report that attributed any blame for the crash of the real estate markets like Florida, Texas, Nevada, nor a little closer in areas like Mariners Harbor and Port Richmond to fraud and/or Organized Crime.
Certainly neither SIBOR, The Staten Island Advance, nor the Richmond County Clerk's Office, kept track of straw loans. But it is interesting to wonder how big a role Organized Crime played in the crash of the sub-prime mortgage market? and if that is why Staten Island have one of the highest per capita rates of foreclosures in the Country?
(I have no actual firsthand knowledge of any transaction, nor of any participant (knowingly or not) in any such fraudulent or illegal transaction or scheme).
………..to be continued
Sunday, October 5, 2008
Why does Staten Island Have so many foreclosures? .........continued
We probably should have known that there was something wrong, when our mortgage payments went to MERS.
MERS stands for Mortgage Electronic Recording Systems. (Others include ASC American Servicing Company, Litton, etc.). These aren’t banks. These are the companies that service the loans: (bill for the payments; pay the insurance and taxes, etc.). They are also the parties that send the files to the lawyers and are sometimes plaintiffs in foreclosures. But they don’t own the mortgage.
Once upon a time, we worked hard, we deposited our money in our local “Banks”, and when it came time to buy a house, our bank gave us the mortgage. Northfield Bank is still like that, but Richmond County no longer gives residential loans. Others that still make mortgages, but have very strict guide lines are Emigrant, Astoria, and Ridgewood. Locally we have the United Brethrens. These institutions tend to loan their own money (depositors' money) and are very careful and generally don’t run into any problems (although they have an occasional foreclosure because bad things do happen to good people!).
These days, most people wind up going to a mortgage broker, or one of the big lenders (Countrywide, Wells Fargo, etc.). People get mortgages based upon: Credit scores; percent of money put down, (Loan to Value- LTV); and income to Debt Ratio (DTI). Mortgage Brokers and bankers fit their customers into neat little packages based upon the available programs at the time. SONYME, FHA, Fannie & Freddie set criteria from which they lend. But not all borrowers can qualify or “conform” to the guidelines.
For those borrowers, Wall Street developed various products. Since we were in a real estate boom and people tend to respect their home as an asset, Wall Street seized upon the opportunity and got into the mortgage business. Lehman Brothers used their own companies, Aurora and FNBA, to make loans that did not meet the stricter criteria of Fanny and Freddie, and FHA, etc.
Once bundled into a large enough block of mortgages, Wall Street sold these MBS’s, (Mortgage Backed Securities) to AIG, Merrill Lynch, Mutual Funds, and Pension Funds. The United States has the most stable government and economy in the world, so foreigners like to invest here because it is safe: foreigners like The People's Republic of China and the newly rich entrepreneurs in India. So that’s who owns the MBS’s, (although pretty soon it is going to be the US Treasury and the US Tax Payer!). But you do not see any foreclosures where the plaintiff is any of these names.
When mortgage loans are sold, they are “assigned”; and the assignments have to be recorded to be enforceable. Public Records (County Clerk’s Office) may list MERS or one of the other servicers as the record Mortgagee, although they are not the owner of the mortgage.
Many foreclosures are commenced while the real owner of the mortgage, the Plaintiff in the foreclosure, is not the record owner. A Federal Judge in one state decided that if the Plaintiff is not the actual mortgagee, the foreclosure could not continue. Another Judge in another state found that the real owner has to sign the foreclosure papers for them to be enforceable. Of course the problem often is that not even the servicing company knows who the real owner is.
Most of the Staten Island’s judges allow the “servicing companies” and/or Mortgagees that are not of record to maintain foreclosures ; and allow foreclosures to proceed although the real owner of the mortgage isn’t the plaintiff in the action, or the assignments weren't recorded at the commencement of the action, (or not even prepared or signed).
While selling blocks of mortgages is nothing new, they used to be sold in groups where the majority were conforming loans (75-80% LTV), although there were always banks that specialized in less than stellar loans and bad credit. BANKS. It used to be that the Banks made money either by loaning the money and making the interest, or by servicing the loans (making a percentage of the amount collected). Used to be, but that’s not what happened here. More on whom the banks loaned money to in a future email.
So Wall Street told their investors that these MBS’s were just like municipal bonds, only not tax-free. The Port Authority is going to sell bonds to build a new Goethals Bridge. If there is a default, will the bond holders have the right to foreclose the mortgage on the Bridge? I think not. Is this not the same thing?
A customer of mine called me the other day and asked me about a property that was boarded up and had a Marshall’s notice on the door. I went to the County Clerk’s office and reviewed the foreclosure file. The referee’s deed put title into: “Deutche Bank National Trust Company, as trustee for Fremont Home Loan Trust 2006-1”. The house has since been listed on the MLS, and the name of the owner is listed as Premier Asset Services (PAS).
So who owns the Real estate?
………………..to be continued
MERS stands for Mortgage Electronic Recording Systems. (Others include ASC American Servicing Company, Litton, etc.). These aren’t banks. These are the companies that service the loans: (bill for the payments; pay the insurance and taxes, etc.). They are also the parties that send the files to the lawyers and are sometimes plaintiffs in foreclosures. But they don’t own the mortgage.
Once upon a time, we worked hard, we deposited our money in our local “Banks”, and when it came time to buy a house, our bank gave us the mortgage. Northfield Bank is still like that, but Richmond County no longer gives residential loans. Others that still make mortgages, but have very strict guide lines are Emigrant, Astoria, and Ridgewood. Locally we have the United Brethrens. These institutions tend to loan their own money (depositors' money) and are very careful and generally don’t run into any problems (although they have an occasional foreclosure because bad things do happen to good people!).
These days, most people wind up going to a mortgage broker, or one of the big lenders (Countrywide, Wells Fargo, etc.). People get mortgages based upon: Credit scores; percent of money put down, (Loan to Value- LTV); and income to Debt Ratio (DTI). Mortgage Brokers and bankers fit their customers into neat little packages based upon the available programs at the time. SONYME, FHA, Fannie & Freddie set criteria from which they lend. But not all borrowers can qualify or “conform” to the guidelines.
For those borrowers, Wall Street developed various products. Since we were in a real estate boom and people tend to respect their home as an asset, Wall Street seized upon the opportunity and got into the mortgage business. Lehman Brothers used their own companies, Aurora and FNBA, to make loans that did not meet the stricter criteria of Fanny and Freddie, and FHA, etc.
Once bundled into a large enough block of mortgages, Wall Street sold these MBS’s, (Mortgage Backed Securities) to AIG, Merrill Lynch, Mutual Funds, and Pension Funds. The United States has the most stable government and economy in the world, so foreigners like to invest here because it is safe: foreigners like The People's Republic of China and the newly rich entrepreneurs in India. So that’s who owns the MBS’s, (although pretty soon it is going to be the US Treasury and the US Tax Payer!). But you do not see any foreclosures where the plaintiff is any of these names.
When mortgage loans are sold, they are “assigned”; and the assignments have to be recorded to be enforceable. Public Records (County Clerk’s Office) may list MERS or one of the other servicers as the record Mortgagee, although they are not the owner of the mortgage.
Many foreclosures are commenced while the real owner of the mortgage, the Plaintiff in the foreclosure, is not the record owner. A Federal Judge in one state decided that if the Plaintiff is not the actual mortgagee, the foreclosure could not continue. Another Judge in another state found that the real owner has to sign the foreclosure papers for them to be enforceable. Of course the problem often is that not even the servicing company knows who the real owner is.
Most of the Staten Island’s judges allow the “servicing companies” and/or Mortgagees that are not of record to maintain foreclosures ; and allow foreclosures to proceed although the real owner of the mortgage isn’t the plaintiff in the action, or the assignments weren't recorded at the commencement of the action, (or not even prepared or signed).
While selling blocks of mortgages is nothing new, they used to be sold in groups where the majority were conforming loans (75-80% LTV), although there were always banks that specialized in less than stellar loans and bad credit. BANKS. It used to be that the Banks made money either by loaning the money and making the interest, or by servicing the loans (making a percentage of the amount collected). Used to be, but that’s not what happened here. More on whom the banks loaned money to in a future email.
So Wall Street told their investors that these MBS’s were just like municipal bonds, only not tax-free. The Port Authority is going to sell bonds to build a new Goethals Bridge. If there is a default, will the bond holders have the right to foreclose the mortgage on the Bridge? I think not. Is this not the same thing?
A customer of mine called me the other day and asked me about a property that was boarded up and had a Marshall’s notice on the door. I went to the County Clerk’s office and reviewed the foreclosure file. The referee’s deed put title into: “Deutche Bank National Trust Company, as trustee for Fremont Home Loan Trust 2006-1”. The house has since been listed on the MLS, and the name of the owner is listed as Premier Asset Services (PAS).
So who owns the Real estate?
………………..to be continued
Sunday, September 28, 2008
Why Staten Island has so many foreclosures
Hi,
I have been sending out foreclosures these past months, and it just occurred to me that many people do not understand why there are so many foreclosures’ on Staten Island; and many more people don’t understand why the country, if not the world, is in such a deep financial crisis. Over a series of short emails, I will try to explain, the best that I can, what happened, and what is going on, and what it all means to us on Staten Island. Feel free to call or email with any questions, and/or comments, that you may have.
I first got involved with foreclosures at the beginning of the crash, a couple of years ago, when Merrill Lynch announced its first $4 Billion write-down. I thought that $4 Billion Dollars was a lot of real estate, and they would need help in getting rid of all of the properties after being foreclosures. Friends and clients were always asking me if I knew of any good foreclosures, as I have been buying and selling bank-owned real estate my entire career from Richmond County and Staten Island Savings Bank before they went public, and other Staten Island Banks that are no longer in existence. My grandfather bought properties from the banks on Staten Island during the Great Depression, always allowing the former owner to remain in the home paying rent ($6 month in those days!).
So I called an old neighbor of mine who was a big trader at Merrill Lynch, whom I used to shovel snow with in the winter years ago. After an exchange of pleasantries, I asked him what Merrill Lynch was doing with all of this real estate that they were foreclosing and just wrote down, and would he put me in the direction of the person/people handling it?
That is when he hit me with the shocker-
“We don’t own any real estate, we only own bonds”.
“Then who owns the real estate?” I asked; and he said he didn’t know. "We just own Bonds."
Whoa.
Knowing this is the first step to understanding our present financial crisis.
………………to be continued
I have been sending out foreclosures these past months, and it just occurred to me that many people do not understand why there are so many foreclosures’ on Staten Island; and many more people don’t understand why the country, if not the world, is in such a deep financial crisis. Over a series of short emails, I will try to explain, the best that I can, what happened, and what is going on, and what it all means to us on Staten Island. Feel free to call or email with any questions, and/or comments, that you may have.
I first got involved with foreclosures at the beginning of the crash, a couple of years ago, when Merrill Lynch announced its first $4 Billion write-down. I thought that $4 Billion Dollars was a lot of real estate, and they would need help in getting rid of all of the properties after being foreclosures. Friends and clients were always asking me if I knew of any good foreclosures, as I have been buying and selling bank-owned real estate my entire career from Richmond County and Staten Island Savings Bank before they went public, and other Staten Island Banks that are no longer in existence. My grandfather bought properties from the banks on Staten Island during the Great Depression, always allowing the former owner to remain in the home paying rent ($6 month in those days!).
So I called an old neighbor of mine who was a big trader at Merrill Lynch, whom I used to shovel snow with in the winter years ago. After an exchange of pleasantries, I asked him what Merrill Lynch was doing with all of this real estate that they were foreclosing and just wrote down, and would he put me in the direction of the person/people handling it?
That is when he hit me with the shocker-
“We don’t own any real estate, we only own bonds”.
“Then who owns the real estate?” I asked; and he said he didn’t know. "We just own Bonds."
Whoa.
Knowing this is the first step to understanding our present financial crisis.
………………to be continued
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