Archive for February, 2012

HOW TO HIRE A HOME IMPROVEMENT CONTRACTOR

Saturday, February 25th, 2012

Carlos in Your Corner, 2/11/2012 on Property Source Radio.
by Carlos Rodriguez, Former NYS Assistant Attorney General
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WHAT YOU NEED TO DO/KNOW BEFORE YOU DECIDE TO HIRE A CONTRACTOR?

►RESEARCH & MAKE A DETAILED LIST OF ALL WORK THAT YOU WOULD LIKE DONE BY CONTRACTOR.

►OBTAIN AT LEAST THREE WRITTEN ESTIMATES FROM RELIABLE CONTRACTORS./ CHECK REFERENCES PROVIDED BY CONTRACTOR.

►OBTAIN PROOF OF CONTRACTOR’S BANK ESCROW ACCOUNT & INSURANCE COVERAGE FROM CONTRACTOR.[ WORKER’S COMP./LIABILITY ETC.]

►INVESTIGATE  WHAT BUILDING PERMITS/OTHER APPROVALS ARE REQUIRED BEFORE WORK BEGINS.

►GET  EVERYTHING  IN WRITING.-CONTRACTORS MUST PROVIDE CONSUMERS WITH A WRITTEN CONTRACT WITH REQUIRED DISCLOSURES IF CONTRACT IS OVER $500. The contract must be signed by the contractor and consumer.

►NEVER PAY FULL AMOUNT UP FRONT-KNOW WHERE YOUR PAYMENTS ARE GOING-DON’T MAKE FINAL PAYMENT UNTIL WORK IS COMPLETED AND YOU ARE SATISFIED WITH THE WORK PERFORMED.

►MAKE SURE THAT THE PROMISES MADE BY THE CONTRACTOR ARE STATED AND EXPLAINED IN THE WRITTEN CONTRACT.

►MAKE SURE THAT THE CONTRACT CONTAINS A STATEMENT OF THE ANTICIPATED START DATE AND COMPLETION DATE OF THE ENTIRE PROJECT.

►BE CAREFUL OF MODIFICATION OF WORK/ COSTS AFTER THE ORIGINAL CONTARACT IS SIGNED. Contractor should provide a complete estimate of the work required/ costs  in order to complete the work at the time the original contract is signed.

Remember that hiring a good contractor involves doing your homework first. Never agree to terms in a contract which are ambiguous or excessive.

Some Scams To Watch Out For

Saturday, February 25th, 2012

Carlos in Your Corner, 2/25/2012 on Property Source Radio.
by Carlos Rodriguez, Former NYS Assistant Attorney General
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Spring is in the air and so are some scams. We have received some reports of scams in our area that everyone needs to be aware of. They all include something along the lines of someone is in legal or medical trouble and you need to send money right away. Do not give them any information, get a name and return phone number (google that number and you may be surprised), and report to your local PD so we can track these incidents.

The next scam that always pops up in the spring is home repair scams. Sooner or later we all need work done to our homes so here are some warning signs and tips to help keep you safe:

Warning signs you should watch for include when a salesperson:
Contacts you first (comes to your home uninvited or contacts you by telephone);
Tells you that you need to make repairs immediately;
Talks too fast (to confuse you) and pressures you to sign papers today;
Tells you that they are doing work in your neighborhood and claims they have “extra materials” left from another job;
Offers to use your home as a “display home” or offers a discounted price or “discounts” for referrals, but only if you buy today!
Tells you something that sounds too good (or bad) to be true. (It probably is not true!)
Tips to Avoid Scams

Do your homework and be prepared:

Before you contact a home improvement company, decide first what you want to have done and how much you can afford to spend. Don’t let the company decide for you.
Talk to friends and family to get names of reputable contractors they have used.
If you need financing to pay for home repairs, shop around first. The financing offered by a contractor may be expensive, so check with banks, credit unions, etc., to see if you can find a better deal. Be wary of credit life insurance and credit disability insurance, as these can be very expensive and are rarely needed.
If you cannot afford to pay for home improvements in cash, many honest (and dishonest) home improvement companies will offer to finance the cost for you. Many times they want to take a mortgage (called a “deed of trust”) on your home. A deed of trust means that if you do not make all of your payments, you could lose your home! So think twice before signing a deed of trust or any other contract — ask yourself whether you are willing to risk losing your home if you get behind in your payments.
Get at least two estimates:

Many companies give free inspections and written estimates — get two or three before choosing a contractor. Remember that the lowest price is not always the best deal. Compare costs, materials, and methods suggested by different companies to decide what materials and methods are best for your home.
Check out the contractor:

Is the company reputable? How long has it been in business? Ask for references and then check them out! Make sure the company is licensed, bonded, and insured. Ask to see its certificate of insurance. Contact the Better Business Bureau and Attorney General to check on complaints.
Ask if there is a guarantee or warranty. If so, make sure it is in writing. If the company won’t put its promises in writing, look for another company which will.
Understand the contract:

Do not sign the contract until you read it carefully. If the salesperson pressures you to sign before you read and understand all of the contract – don’t sign it! Never rely on the salesperson to read or explain the contract to you. Ask a trusted friend or lawyer to assist you.
Do not let someone talk you into buying something you don’t need — or can’t afford.
Do not pay for repairs in advance.  Pay the final payment only after the work is complete.
Do not sign a contract unless:

It includes a detailed description of the work to be done and specifies exactly what materials will be used and their quality;
All of the contractor’s promises are in writing;
The contract includes the starting date and estimated completion date; and
The contract is fair and the terms (including the price, finance charges and payments) are what you agreed on. If not, do not sign it!
Be sure to get a copy of everything you sign when you sign it.
Inspect the work

Make sure that the contractor has a City permit to do the work. Inspect all of the work very carefully to make sure it was done properly. If you have any doubts or questions, do NOT make your final payment or sign a “completion certificate” until the work is properly finished.

Fewer Home Owners Behind on Payments

Saturday, February 25th, 2012

As Alex reported 2/25/2012 on Property Source Radio.
Realtor.org  – Daily Real Estate News | Wed, Feb 21, 2012
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The number of home owners behind on their mortgage payments dropped to the lowest level in three years, according to a report of data from the fourth quarter of 2011 released by the Mortgage Bankers Association.

“Mortgage performance is also improving faster than the overall economy,” says Jay Brinkmann, MBA’s chief economist.

According to MBA, 7.6 percent of residential mortgages were at least 30 days past due on their payments in the fourth quarter of 2011. Last year, the percentage was 8.3, and the peak of 10 percent was reached in early 2010. Mortgage delinquencies usually hover around 5 percent in more stable markets.

Still, while the lower delinquencies serve as an important sign needed for a healing housing market, MBA still caution that the number of loans in foreclosure remains high. About 4.4 percent of all loans were in foreclosure in the fourth quarter. The peak reached one year earlier was 4.6 percent.

Source: “Mortgage Delinquencies Hit Three-Year Low,” The Wall Street Journal (Feb. 16, 2012)

Mortgage problems? Turn your house into a billboard

Saturday, February 18th, 2012

As Alex reported 2/18/2012 on Property Source Radio.
Yahoo Finance  – By Tim Reid | Reuters – Mon, Feb 13, 2012
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BUENA PARK, California (Reuters) – When they saw the house on El Dorado Drive in this Los Angeles suburb being painted a startling orange and green and giant billboards hung on the outside, Scott and Beth Hostetler’s neighbors were initially angry and confused. Some even considered calling the police.

But what they witnessed on Friday was not an offensive redecoration decision by the Hostetlers, but rather the debut of one of the more unusual schemes to arise from the housing crisis. In return for allowing the front of their four-bedroom house to become a garish advertisement, the Hostetlers are getting their nearly $2,000 monthly mortgage paid by the marketing company behind the project, Brainiacs From Mars.

In a residential neighborhood without heavy traffic, cars passing by the house slowed and drivers gawked at the vivid colors and a giant Brainiacs From Mars billboard.

Romeo Mendoza, the company’s founder and CEO, told Reuters that his ultimate goal is to turn 1,000 homes across the United States into giant advertisements for his marketing firm.

And in each case struggling homeowners will get their mortgage paid, for up to a year.

“If we roll it out to scale and impact the foreclosure crisis, that would be amazing,” Mendoza, 42, said.

Mendoza said he chose the Hostetlers because they are nice people and he wants to choose the most deserving cases rather than homes on the busiest streets.

Since he advertised the scheme on his website in April 2011, Mendoza says he has had 38,000 applications, from as far afield as Russia and Japan.

The Hostetlers, who are both deaf, were one of those applications and were informed three months ago that their home had been chosen to launch the scheme.

There are a number of issues that could prevent the idea from gaining traction, namely zoning laws and other city codes that limit where advertising can be placed and sometimes regulate other aspects of a home’s appearance.

But Mendoza says the idea could help struggling homeowners who face being evicted from their homes through foreclosure, although the Hostetlers say they are going to use the money to pay down credit card debt.

Most of the 38,000 applicants have come from California, Nevada and Florida – the three U.S. states hardest hit by the foreclosure crisis triggered by the collapse in housing prices after the 2008 financial crash.

GRAFFITI OR GODSEND?

In southern California 44 per cent of homeowners are “underwater,” owing more on their mortgages than their homes are worth. In Buena Park, about one in every 270 homes has been foreclosed upon.

“The response has been overwhelming,” Mendoza says. “People are hurting, and struggling to stay in their homes. If we can help some of them, that would be great.”

Mendoza’s plan is to advertise his company’s name and its social media marketing tools on the front of people’s homes. In return, he hopes the quirkiness of the scheme will convince companies to hire Brainiacs From Mars to run their advertising campaigns.

He says he is already negotiating deals with some big firms. The payments to homeowners for the initial experiments are being funded by profits from some of his company’s other projects.

The reaction of the Buena Park city council, and some of the Hostetlers’ neighbors, suggests that Mendoza could face a bumpy ride.

The Hostetlers’ neighbors have been told that the house will only be a giant advertisement for a month. In fact Mr. Hostetler says he would like it to stay that way for six months.

Neighbor Vivian Largent said: “If it’s for a month, I’m ok with it. But no longer.”

Echoing that sentiment, another neighbor, 80-year-old Bob Pancoast, said: “All the neighbors were a little upset at first. We thought they had gone off their rocker. But I guess it’s a good idea for them.”

Mendoza said he had checked and that there are no restrictions in Buena Park on the colors homeowners can paint their houses. “They can paint them multi-colors if they like,” Mendoza said.

Fred Smith, who sits on the Buena Park city council, was surprised when told about the scheme – and not at all happy.

The color scheme was fine, he said. But the advertisements were another matter.

“This does not follow with the city codes,” he said. “They are going to be in trouble. They need to go someplace else.”

Charles Mclaughlin, a finance expert in the housing industry, said: “I don’t think the program will be a success. It will be akin to graffiti – that’s how people are going to look at it. They are going to run into zoning problems everywhere.”

Mendoza said: “There are definitely zoning issues in some cities, and we realize that.

“But we have really hit a nerve, and we can’t let that stop us. Once people start seeing how it works, once they get it, the moment they realize it is paying people’s mortgages, they are always on our side, because of this economy.”

(Editing by Cynthia Osterman)

See Photos

RGE/NYSEG-Security Breach-Possible ID Theft Affecting Customers

Saturday, February 11th, 2012

Carlos in Your Corner, 2/11/2012 on Property Source Radio.
by Carlos Rodriguez, Former NYS Assistant Attorney General
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The purpose of this Consumer Alert is to assist recipients of a recent letter sent to over a million RG&E/ NYSEG customers in connection with the unauthorized access to RG&E/NYSEG customer information systems. The letter dated January 23, 2012 states, in part, “an employee of an independent software development consulting firm ( contracted by NYSEG and RG&E ) allowed unauthorized access to one of our customer information systems.  The customer records contain Social Security numbers, dates of birth and, in some cases, financial institution account numbers”.

If you are a RG&E or NYSEG customer and you received this important notice, YOU NEED TO ACT IMMEDIATELY BEFORE YOU BECOME A VICTIM OF ID THEFT AS FOLLOWS:

1.     Contact one of the Credit Reporting Agencies (“ CRA”) to with: EQUIFAX-1-800-525-6285, EXPERIAN-1-888-397-3742  and TRANS UNION-1-800-680-7289 and request that your Credit File be placed on a 90 Day Temporary Fraud Alert. Calling one CRA will automatically trigger the other two CRA’s to place the same alert on your Credit File.

2.    Obtain a copy of your Credit Report from each CRA.  You can obtain FREE COPIES OF YOUR CREDIT REPORTS BY DOWNLOADING THE FORM AT: WWW.ANNUALCREDITREPORT.COM AND MAILING IT TO THE ADDRESS PROVIDED IN THE FORM.

3.    Review your Credit Reports to determine if there are any unauthorized or fraudulent activity .  If you discover any unauthorized accounts, Federal Law requires the Furnisher (i.e. Credit Card Company etc.) and the Credit Reporting Agency to investigate and delete the erroneous account information.  In addition, monitor and review all of your monthly Credit Card statements and bills .

4.    If you discover that new accounts have appeared on your Credit Report, you may be a victim of ID Theft.  If so, do the following:
A) File a Police Report explaining that your Credit Report and account information have been compromised.
B) File a ID Theft Complaint with the Federal Trade Commission (“ FTC”) at www.FTC.gov.

5.    RG&E and NYSEG have arranged for Experian to offer customers the option of a year of free credit monitoring free of charge. Read the fine print in connection with the terms and conditions of this “free” one year service.

REMEMBER : ID THEFT IS A GROWING BUSINESS FOR SCAMMERS.  A SCAMMER’S ACCESS TO YOUR PERSONAL – FINANCIAL INFORMATION WILL CAUSE FINANCIAL TRAUMA TO YOU AND YOUR FAMILY IF YOU ARE NOT PROACTIVE.

GOOD LUCK

Fannie Starts Accepting Online Offers for Properties

Saturday, February 11th, 2012

As Alex reported 2/11/2012 on Property Source Radio.
Realtor.org  – Daily Real Estate News | Wed, Feb 8, 2012
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Fannie Mae has announced that it is rolling out a pilot program nationwide that will allow real estate agents to now submit and track their offers online for Fannie Mae-owned properties. Once an offer is submitted, you’ll receive confirmation and be able to track its status through Fannie’s HomePath web site.

Fannie first began piloting the program for online offers in 2010 in San Diego, Orlando, Fla., and Detroit. It now be accepting online offers for properties nationwide.

“Collecting offers online through HomePath.com will provide greater transparency for home buyers and their agents,” Jay Ryan,  vice president for REO at Fannie Mae, said in a statement. “Our online platform will make it easier to sell properties to owner-occupants, which is a major factor in helping to stabilize communities across the nation.”

For more information on how the new program works, visit HomePath.com.

Source: Fannie Mae

Biography of: CARLOS RODRIGUEZ Assistant Attorney General

Wednesday, February 8th, 2012

Carlos Rodriguez is originally from the Bronx , New York but now considers Rochester his home. In April, 2009, he retired as an Assistant Attorney General [ “ AAG “]with the Office of the Attorney General of the State of New York. He served as an AAG for 28 years under the tenure of five(5) Attorney Generals.

Carlos graduated in 1973 from Manhattan College in the Bronx with a Bachelor of Science degree in Business Administration/Economics .   He graduated in 1976 from the University of Buffalo School of Law and was  admitted to practice law in the Fourth Department in September 1977.  He also formerly worked for both the Legal Aid Society of Rochester and the Monroe County Public Defender=s Office; and from 1981 to the present, he has been with the Office of the NYS Attorney General.  He is also admitted to practice in the US District and Bankruptcy Court for the Western District of New York and is a certified trial and consumer frauds attorney .

Prior to retirement, Carlos worked in the Public Advocacy/Consumer Frauds Bureau for 15 years. During that tenure, he handled hundreds of civil / criminal cases involving fraudulent home contractors, charities fraud, UPL, immigration fraud, auto dealers, predatory lending and other cases involving fraudulent and illegal business practices and scams affecting elderly consumers. In retirement, Carlos serves as a local consumer advocate, talk radio host and an attorney in private practice. In October,2011, Carlos was selected to Chair the Lifespan-Finger Lakes ID Theft Coalition.

Carlos has served his entire pre-retirement legal career ( 32 + years) in public interest/government service.

Generators to Emerald Ash Borers – this week on PS radio!

Wednesday, February 8th, 2012

Listen in this Saturday as Jim Swetman from Home Power Systems talks about your need for a generator in times of power outages. He’ll come out to your home and do a site survey to assess your needs. Visit his website at http://homepowersystems.net/

Following Jim is Mike Cullen of Ash Tree Medics in to talk about the emerald ash borer and the 100 million trees it has already affected on this side of the country. Watch for those woodpeckers! That’s a sign that YOUR yard may be infected. Listen in and learn more at http://turfntrees.com/

And don’t forget our new feature, “Carlos in Your Corner” with former Assistant Attorney General, Carlos Rodriguez. This week Carlos talks about the RG&E monitoring service. He recommends you get a credit report at https://www.annualcreditreport.com/cra/index.jsp. Listen in for more details.

5 Housing Markets Expected to Outshine All the Rest

Saturday, February 4th, 2012

As Alex reported 2/4/2012 on Property Source Radio.
Realtor.org  – Daily Real Estate News | Tuesday, Jan 31, 2012
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Inman News released a report highlighting metro areas that are expected to “outshine many other markets in real estate performance this year.”

In its report, Inman News scanned metro areas with populations over 150,000 to find where real estate sales volume is rising, job markets are growing, foreclosure activity is low, sales prices are appreciating, and home affordability is at high levels.

Here are the metro areas topping the list, including the third quarter 2011 median sales price and the percentage change in sales price year-over-year.

1. Raleigh-Cary, N.C.

Median sales price: $224,300

Median sales price change year-over-year: 7.3 percent

2. Wichita, Kan.

Median sales price: $120,900

Median sales price change year-over-year: 5.5 percent

3. Rochester, N.Y.

Median sales price: $123,400

Median sales price change year-over-year: 1.4 percent

4. Des Moines-West Des Moines, Iowa

Median sales price: $157,900

Median sales price change year-over-year: 0.8 percent

5. Chattanooga, Tenn.-Ga.

Median sales price: $128,700

Median sales price change year-over-year: 7.3 percent

Find out the other cities that made the top 10 list as well as more about each metro area’s real estate market and why it’s one to watch in the new year.

Source: “10 Real Estate Markets to Watch in 2012,” Inman News (January 2012)