The Creel Deal

The newest scam people are getting is the "update your paypal account" email. It's fairly realistic looking and I have no doubt its worked on a few folks. I know my super-smart colleagues would never fall for this, but I'll put it out there just the same.

----- Original Message ----
From: "service@paypal.com" <service@verio.com>
Sent: Thursday, June 26, 2008 10:49:47 AM
Subject: Notification of Limited Account Access

 Dear PayPal Member,

 As part of our efforts to provide a safe and secure environment for the online community, we regularly screen account activity. While reviewing your PayPal accounts, we observed activity that we would like to further verify.

For this reason, limitations have been placed on your account until your will review your registered intormation. In order to resolve the account limitations, complete our online form by clicking on the following link:

 Log into your PayPal account

After we have gathered the necessary information, your account will be reviewed for reinstatement and you will be notified by e-mail of our decision.

We thank you for your prompt attention to this matter and apologize for any inconvenience.

Sincerely,
Account Review Department

© 2008 PayPal Inc. All rights reserved. PayPal is located at 2211 N. First St., San Jose, CA 95131

 

 Then you will then see this page (above link is now dead)

 Then once you click on the link on that page, you go here:

 

The page will accept any fake password combo you enter, since its really just collected info. You will then go to yet another page that will ask you for your personal info such as birthday, social security number, bank account number, mothers maiden name, and even your ATM card number with PIN number!

You may also receive similar emails and bogus log in pages for all major banks.

Residential sales volume for June 2008

decreased 3% from May 2008 all Sales 2007 (vs. Year-to-date 2007)

Residential sales volume: off 57% to $1.3 billion

Residential transactions: off 54% with 3,680

Mobile home sales on land: off 65% to $22 million

Plexes (2-5 units) sales: off 61% to $21 million

Land sales: off 75% to $98 million

Commercial volume: off 61% to $266 million

Average residence: $362,286, off 7%

 

Existing home transactions sold unchanged in June 2008 vs. May 2008

 Existing Home Sales

Units sold off 54%; volume: off 57% to $759 million

2,009 units sold this year vs. 4,330

Average price off 8% to $377,552

Half homes (median) sold for more than $334,950, off 5%

Average $/SF for homes sold: $216.93 (all sales), off 10%

Best range: $300,001 - $350,000, with 69 monthly

Second best absorption rate: $350,001 - $400,000 with 48.8 per month

 

8 acreage parcels sold monthly, off 56% from last year; average price, $181,290, off 14%

 Acreage Sales

 

33.2 per month of existing homes sold, off 53%; average price: $522,690, off 20%

Median price for existing homes: $450,000, off 10%

6.2 new single family homes sold monthly, off 51%

The new home average price: $451,277, off 23%

Median price for new homes: $459,950, off 20%

The $/SF for existing homes: $251.64, off 24%

The $/SF for new homes: $382.82, up 32% (10% of sales with data)

Average lot sizes, for existing homes: 4.3 acres, up 18%; for new: 3.1 acres, up 9%June residential recorded transactions were 61% fewer than last June.

 

New single family homes units sold in June 2008 off 11% from May 2008

New Single Family Homes

 

Average sale price: $438,932, off 15%

Median sale price: $409,950, off 12%

New homes represent 27% of volume and 24% of units recorded

639 sold vs. 1,205 last year, off 47%; volume: off 55% to $280 million

Average $/SF: $247.58, off 1% (6% with data)

Best range: $300,001 - $350,000 with 17.5 monthly

Second best range: $350,001 - $400,000 with 16.3 per month

Best range: $100,001 - $150,000 with absorption of 5.5 per month, off 57%

 

Subdivisions

The average lot sold for $163,969, off 16%

Half (median) the lots sold for more than $130,000, off 32%

17.8 sold monthly vs. 77.2 monthly last year, off 77%

The average lot represents 37.4% of the average new home price

The median priced lot represents 31.7% median priced home

 

Attached unit sales off 21% in June 2008 from May 2008

 Attached (vs. Year to date 2007) includes condominiums and townhomes

 

Average sale price: $280,244, off 1%

Median sale price: $252,000, off 5%

42% (380 units) new

905 sold vs. 2,029 last year, off 55%; volume: off 56% to $254 million

Average existing $/SF, $214.24, off 2%; for new: $208.97, off 4% (4% with data)

Best range existing: $225,001 - $250,000 with 16.5 monthly

Best range new: $300,001 - $350,000 with 12.5 per month

 

Projection

Relative inventory increased to 15.5 months, still a buyers' market. Prices will soften. 2008 will be a challenging year for residential real estate. The meltdown of both FNMA and FHLMC is a terrible blow to the housing market. No matter what solution is created, borrowers will pay more for mortgage money.

 

Residential sales volume for June 2008 is up 5% from May 2008

 All Sales

Residential sales volume: off 44% to $1.4 billion

Residential transactions: off 41% with 4,704

Mobile home sales on land: off 63% to $38 million

Plexes (2-5 units) sales: off 54% to $33 million

Land sales: decreased 66% to $85 million

Commercial volume: off 52% to $263 million

Average residence: $296,970 off 4%

 

Existing home transactions sold off 4% in June 2008 from May 2008

 Existing Home Sales

 Units sold: off 40%; volume: off 43% to $914 million

3,029 units sold this year vs. 5,116

Average price off 4% to $301,700

Half homes (median) sold for more than $263,000 off 3%

Average $/SF for homes sold at $164.76 (all sales), off 8%

Best range: $225,001 - $250,000, with 74.3 recorded monthly

Second best range: $250,001 - $275,000, with 63.2 per month

8.5 acreage parcels sold monthly, off 65%; average price: $147,222 off 3%

 

Acreage Sales

44.2 per month of existing homes sold, off 39%; average price: $452,164, off 8%

Median price for existing homes: $370,000, off 5%

7.2 new homes sold monthly, off 23%; average price of $378,721, off 25%

Median price for new homes: $327,000, off 17%

The $/SF for existing homes: $197.82, off 12%

For $/SF for new homes on acreage: $158.82, off 13% (70% of sales with data)

Average lot sizes, for existing homes: 3.3 acres, off 5%; for new: 3 acres, off 7%

 

New single family homes units sold in June 2008 are up 25% from May 2008

New Single Family Homes

Average sale price: $346,127, off 9%

Median sale price: $315,000, off 5%

New homes represent 24% of volume and 22% of units recorded

840 sold vs. 1,091 last year, off 23%

Volume: off 30% to $291 million

Average $/SF: $148.93, off 7% from last year's average (58% of sales with data)

Best range: $300,001 - $350,000, with 30.7 per month

Second best range: $275,001 - $300,000, with 20.7 monthly

Best lot range: $75,000 - $100,000 with 12.2 sold per month, off 58%

 

Subdivisions

The average lot sold for $106,467, off 15%

Half the lots sold for more than $98,684, off 10% (median)

29.8 sold monthly vs. 99.2 last year, off 70%

The average lot represents 30.8% of the average new home price; 31.3% for median

 

Attached unit sales off 2% in June 2008 from May 2008

Attached includes town-homes, condos and commons

Average sale price: $234,694, off 10%

Median sale price: $211,000, off 11%

39% (207 units) are new

532 sold vs. 1,096 last year, down 51%; volume: off 6457% to $125 million

Average $/SF: $190.62, off 1% for existing units; new: $193.03, up 22% (40% w/data)

Range with best sales, existing: $250,000 - $300,000 with 6.7 per month

Best range new: $190,001 - $200,000 with 5 monthly

 

Projection

Relative inventory decreased to 9.8 months, still a buyers' market. Prices will be soft. The meltdown of both FNMA and FHLMC is a terrible blow to the housing market. No matter what solution is created, borrowers will pay more for mortgage money.

 

Residential sales volume for June 2008 increased 16% from May 2008

 Year-to-date 2008 (vs. Year-to-date 2007)

 

Residential sales volume: off 40% to $477 million

Residential transactions: off 35% to 1,471

Mobile home sales on land: off 43% to $18 million

Plexes (2-5 units) sales: off 69% to $5 million

Land sales: off 54% to $43 million

Commercial volume: off 57% to $61 million

Average residence: $324,358, off 8%

 

Existing home transactions sold up 20% in June 2008 from May 2008

 Volume sold: $335 million, off 41%

996 units sold, off 37%; Half (median) sold for more than $264,810, off 6%

The average price on Bainbridge Island: $777,488, off 3%; avg $/SF: $327, off 3%The Existing

 

Homes information below has Bainbridge Island data removed

Average price: $295,036, off 3%

Average $/SF for homes sold at $180.43 (all sales), off 8%

Best range: $225,001 - $250,000, with 26.3 per month

Second best range: $250,001 - $275,000, with 16.5 monthly

 

7.3 lots acreage sold monthly, off 63%; average: $185,724 up 2%, incl 2 on BI @ avg $350,000

 

33.8 per month of existing homes sold, off 25%; average price: $481,226 off 2%

Median price for existing homes: $425,000, up 8%

4.7 new single family homes sold monthly, off 34%; average price: $416,217, off 19%

Median price for new homes: $404,500 off 6%

$/SF for existing homes: $234.11, off 5%; new: $183.48, off 4%

Average lot sizes, existing homes: 2.5 acres, off 4%; for new: 2.9 acres, up 13%

  

New single family homes units

Bainbridge average sale price: $1,019,706, up 3% (3 recorded sales)

Kitsap without Bainbridge average sale price: $323,818, off 13%

New homes represent 21% of volume and 22% of units recorded

Volume: $92 million, off 6%; 277 sold this year, up 16%; (40% sold by Quadrant)

 

New Single Family Homes information below has Bainbridge Island data removed

Average $/SF: $167.54, off 6% (32% of sales with data)

Best ranges: $300,001 - $350,000 with 10.5 monthly

Next best range: $275,001 - $300,000 with 7.2 per month

The average lot sold for $119,362, off 2%; Bainbridge Island: 2 at average: $374,953

26.3 sold monthly, off 27% from the 35.8 that sold per month last year

Best range: $100,001 - $150,000 with absorption of 19.7 per month, up 75%

The average lot represents 36% of average new home

The median priced lot represents 37.9% of the median new home price

Attached unit sales off 63% in June 2008 from May 2008

 

Below - includes condominiums and town-homes

Average sale price: $303,874, off 12%; w/o BI: average $216,785, off 1%

Median sale price: $227,500, off 14%

90 sold, off 60%; 31% new (28 units); BI: 30 units at avg $478,051, up 2% (5 new)

Volume: $27 million, off 65%; $14 million on BI, off 73%

Average $/SF existing: $216.64, up 6%; new: $288.15, off 13% (No new solds in June)

Best ranges new: $200 - $210,000; $230 - $240,000 and $500,000+, each with 0.7 monthly

Best ranges existing: $300,001 - $400,000 with 1.7 per month

 Projection

Relative inventory decreased to 10.4 months, still a buyers' market. Prices will soften. No matter who wins in November, any changes will take at least eighteen months to impact the economy. The world is so interconnected; our downturn will be felt globally.

 

Residential sales volume for June 2008 decreased 6% from May 2008

 All Sales

Residential sales volume: off 42% to $6 billion

Residential transactions: off 42% to 12,006

Mobile home sales on land: off 52% to $19 million

Plexes (2-5 units) sales: off 55% to $106 million

Land sales: off 67% to $172 million

Commercial volume: off 72% to $1.5 billion

Average residence: $499,439, up 1%

 

Existing home transactions sold decreased 4% in June 2008 from May 2008

Existing Home Sales

Units sold: off 40%; volume: off 41% to $3.6 billion

6,582 units sold this year vs. 10,989

Average price off 1% to $547,332

Half homes (median) sold for less than $435,000, off 2%

Average $/SF for homes sold at $283.65 (all sales), off 4%

Best range: $300,001 - $350,000, with 141.7 monthly

Second best absorption rate: $500,001 - $600,000, with 136.7 per month

13.3 acreage parcels sold monthly, off 61%; average price: $224,898 off 30% from last year

 

Acreage Sales

55.7 per month existing homes sold, off 42%, average price: $739,549, off 10%

Median price for existing homes: $590,000, off 6%

5 new homes sold monthly, off 48%, average price: $1,046,548, up 7%

Median price for new homes: $810,000, up 28%

The $/SF for existing homes: $298.99, off 15%; new: $247.31, off 19% (60% w/data)

Average lot sizes, for existing homes: 3.9 acres, up 18%; new: 3.5 acres, off 42%

The average price per acre for acreage lot sales: $90,457, off 19%

 

New single family homes units sold

Average sale price: $661,961, off 3%

Median sale price: $530,000, off 5%

New homes represent 19% of volume and 16% of units recorded

1,281 sold vs. 1,929 last year, off 34% volume: off 36% to $848 million

Average $/SF: $250.29, off 4% (49% of sales with data)

Best range: $750,001 - $1,000,000 with 32 per month

Next best range: $600,000 - $750,000, with absorption of 31.8 monthly

Best lot range: $200,001 - $300,000, with absorption of 13 per month, off 20%

 

Subdivisions

The average lot sold for $228,161, off 15%

Half the lots sold for more than $216,780 (median), up 9%

34.5 sold per month vs. 84 last year, off 59%

Average lot represents 34.5% of the average priced new home

The median is 40.9% of the median priced new home

Attached unit sales off 21% in June 2008 from May 2008

Attached (vs. Year- to date 2007) includes condos, commons and town/row homes

Average sale price: $369,282, up 3%

Median sale price: $322,500, up 2%

35% (1,369 units) of sales are new

3,887 sold vs. 7,245 last year, off 46%; volume: off 45% to $1.4 billion

Average existing $/SF: up 5% to $327.36; new: $321.52, off 3%, (56% w/data)

Range with best sales, existing: $300,001 - $350,000, with 59 per month

Range with best sales, new: $300,001 - $350,000, with 38.5 monthly

Projection

Relative inventory is increased to 8.7 months, still a buyers' market. Prices will fall. The meltdown of both FNMA and FHLMC is a terrible blow to the housing market. No matter what solution is created, borrowers will pay more for mortgage money.

Over the last two years I've become a bit of an expert on the Nigerian 419 Scam as a hobby. The 419 covers everything from rental, lottery, inheritance, to employment scams; all done via emails.

Many originate on craigslist.com and occur when you place a rental or sales ad there; others just find their way to your email box. Often your receive lovely pictures (like the one to the left) from Barrister's, Bishops, and even an occasional Princess.

I've written on the subject in the past and have had more people contact me regarding the post than I can recount.   The latest version of the 419 is fairly clever (if you can overlook the spelling) and has been successful on quite a few people that previously fell victim to one of the aforementioned versions.

I know from the emails I've received, and the news, people are buying into these scams, Thus I feel the need to warn them about what I can only call "The Re-Scam".

Heres how it goes:    

From: BISHOP JOHNSON <earlspencer_00@yahoo.com> Sent: Monday, July 14, 2008 8:51:48 PM Subject: ZENITH BANK/UNITED NATIONS,SCAM VICTIMS    ZENITH BANK/UNITED NATIONS,SCAM VICTIMS     COMPENSATIONS PAYMENTS.DIRECTOR,     SCAMMED VICTIM/$100,000 BENEFICIARIES.     REF/PAYMENTS CODE:06654 $100,000 USD.     ATTENTION BENEFICIARY:                ZENITH BANK/UNITED NATIONS SCAM VICTIMS COMPENSATIONS PAYMENTS.          This is to bring to your notice that I am delegated from the United Nations to Central Bank to pay 48 scam victims $100,000 USD (One Hundred Thounsand Dollars) each. You are listed and approved for this payment as one of the scammed victims to be paid this amount, get back to us as soon as possible for the immediate payments of your $100,000 USD compensations funds.          On this faithful recommendations, know that during the last U.N. meetings held at Abuja the Capital of this Country Nigeria, it was alarmed so much by the world in the meetings on the lose of funds by various individuals to the Nigerian scams artists operating in syndicates all over the world today.     In other to compensate victims, the U.N Body in conjunction with the Nigerian Government is now paying 48 victims of this operators $100,000 USD each in accordance with the U.N. recommendations. Due to the corrupt and inefficient Banking Systems in Nigeria, the payments are to be supervised by the United Nations' Officials and the Central Bank Nigeria as the corresponding paying bank is ZENITH BANK PLC.          According to the number of applicants at hand, 21 Beneficiaries has been paid, half of the victims are from the United States, we still have more 27 left to be paid the compensations of $100,000 USD each. Your particulars was mentioned by one of the Syndicates who claimed to be the ATM Director CBN who was arrested as one of their victims of the operations, you are hereby warned not to communicate or duplicate this message to him for any reason what so ever as the U.S. secret service is already on trace of the other criminals. So keep it secret till they are all apprehended.  Other victims who have not been contacted can submit their application as well for security and possible consideration.          The Economic and Financial Crimes Commission (EFCC) (Motto: No Body is Above the Law) have combined effort with the United Nation Anti-crime commission to alleviate and redeem the image and past wounds of foreigners and firms who were defrauded, scammed and abandoned by this syndicates to slight down our dignities to international communities.     Many banks have been in bankrupcy today, Universal firms, Companies and individuals due to the activity of these hoodlums. However, investigation have shown that these people have dropped over 500,000 victims after collecting their money falsefuly, many committed suicide and others living by the grace of God.          With the sanity presently at hand, we have over 500 convicts at hand, 300 in kirikri prisons while many are still awaiting trail while We still fetch for others who feel they are wise and hope that you will be our friend by giving us more information as per clue in apprehending them.         You can receive your compensations payments via any of this options you Choose, DRAFT/CHEQUE PAYMENTS or WIRE TRANSFERS.I shall reply you with further modalities as soon as I hear from yoU.     SCAMMED VICTIM REF/PAYMENTS CODE:06654 $100,000 USD. Email: bishopjohnsondate@yahoo.co.jp    Waiting to hear from you as soon as possible.       Yours faithfully, BISHOP JHONSON bishopjohnsondate@yahoo.co.jp SCAMMED VICTIM/REF/PAYMENTS CODE:06654 $100,000 ------------------- My Response: Indeed I was scammmed out of $7,000 USD by a fellow claiming he wanted to rent my home from me. What can I do to recover the money? ------------------------------- Attention: Michael Creel   I want you to forward the conversations you had with the scammer, all the papers or the info you received from him,the info used when sending the money to him, then enclose your contact address, your telephone number, a copy of your drivers license.... we need your hunble corporations over this matter to enable us track the scammer... after verifications your payment will be made....and you advice to comply with our instructions to enable us proceed faster with your case....   Sincerely Bishop Johnson ----------------- My Response:   Will this cost me anything up front? ----------------------------- Dear Michael  Creel   Thanks for your message, We are working towards everything here all we need is your corporations, Just do what I instructed you, send all the conversation you have with the fraudster, the documents he sent to you ... or you can aswell send the payment informtions you sent to him... I will attach this stated items to your claim files...and fax them to the Bank that will make your payment of 100,000 dollars.....but before this will be commence will need total verifications to ensure that you are telling us the truth...however you will also required to follow legal process to enable your payments.....   Sincerely   BISHOP JOHNSON -----------------------------   My Response: All I'm asking is, what is the "legal process". To put it simply, is this a free service? --------------------------- Dear Michael  Creel   Thanks for your Questions? I want you to understand that you are in the safe side... that this is 100% Free from this department... But what I mean by Legal Process means that you will have to get a lawyer from Nigeria who will sign some Papers and Deffend your Files in High Court Abuja from their your Payment info will be Fax to the PAYBANK that will credit your account with the fund of 100.000 dollars as your compesation Payment to renew this country image and reputation in world Record... we are fighting  24/7 against corruption and crime in this country...and I want you to follow every instruction giving to you to enable you get your payment.....Send your contact details and a copy of your drivers license for more perusal and means of Identifications...   When I confirm the above stated info from you I will then tell you what you need to do...before the bank will contact you to inform you of your payment....   Sincerely Bishop Johson  ------------------------------     My Response: I am curious bishop. do you feel even the least bit of remorse when you scam a person for the second time with this little charade of yours? Or do you simply justify it within yourself and claim the rich Americans deserve it?  ----------------------------- Michael what did you mean? please tell me what did you think?   Bishop Johnson -----------------------------END After that last one I did indeed tell him what I think, so I can't include it in this post (you can use your imagination). Normally I play along with these scams a bit further to see what all they want me to do. In the end, it's always the same, wire money to cover legal fee's. So, anyone that has been burned by one of these people, believe me when I say your money is gone, and no one is going to contact you to give if back. Trust me on that one!

 

In 1994 I was visiting friends in Orange County California and they were experiencing some real estate woes of their own. At the time Orange County was heading into bankruptcy, the real estate values were plunging much as they are now. Peoples position at the time was similar to that of so many I see today "If the property's not worth what I owe, why should I make the payments".

Two years prior to my visit, my friends were doing well for themselves financially. They owned a beautiful new home they had spent 800k building, and had purchased an enormous commercial building for 2 million for their furniture store (putting 50% cash down).

Now that the market had taken a dive, the commercial property was worth about 800k, which was more than they owed (his million dollar down payment was gone) and their home was also worth far less than they owed. Their strategy was exactly the same as so many are employing today, dump it on the bank. They rationalized that they could lease nicer properties for far less money, and after all, why pay for something that's worth less than what's owed?

They followed through on their idea and walked away from both properties, taking the loss and the hit to their credit. They indeed were able to lease a home and commercial building for thousands less than they were currently putting out in loan payments. In the little picture, they made money with their decision.

I haven't stayed in contact with those old friends from California since moving to the Northwest, but I couldn't help but wonder how they felt 10 years later when California's property values soared to insane heights, and those properties they dumped on the lender were worth millions. I was too polite to call and ask.

Now here we are again; prices dropping, and people walking. Obviously many homeowners simply don't have the funds to continue making the payments, so they have no choice but default. However, rest assured, there are undoubtedly those that can make the payments and will simply walk away because it seems like a sensible thing to do at the moment.

There will be a time in the not-so-distant future when prices soar again, and the people that will reap the rewards will be the farsighted investors grabbing up all the properties owners decided were worthless. If you think people are mad now, wait until the day they see the house they walked away from sell for 3 times the amount of debt they owed.

Someone will make a killing, but it won't be the walkers.

At times it seems we simply don't listen to the very people we pay to warn us. I recently ran across this article detailing an FBI report that essentially told us exactly what the future held for the mortgage industry, yet no one did much to prevent it. What could have been done? Did the governement fail us, or did we fail ourselves? Excerpts from the story are below:

FBI warns of mortgage fraud "epidemic" Seeks to head off  "next S&L crisis"

CNN Washington Bureau Friday, September 17, 2004

WASHINGTON (CNN) -- Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an "epidemic" of financial crimes which, if not curtailed, could become "the next S&L crisis."

Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and criminal groups whose fraudulent activities could cause multibillion-dollar losses to financial institutions.

"It has the potential to be an epidemic," said Swecker, who heads the Criminal Division at FBI headquarters in Washington. "We think we can prevent a problem that could have as much impact as the S&L crisis," he said.

In one operation, six individuals were arrested Thursday in Charlotte, charged with bank fraud for their roles in a multimillion-dollar mortgage fraud, officials said. The two-year investigation found fraudulent loans that exposed financial institutions and mortgage companies to $130 million in potential losses, they said.

The number of open FBI mortgage fraud investigations has increased more than five-fold in the past three years, from 102 probes in 2001 to 533 as of June 30 this year, the FBI said. The potential losses are staggering, and many financial institutions are cooperating with investigators.

Officials noted mortgage industry sources have reported more than 12,000 cases of suspicious activity in the past nine months, three times the number reported in all of 2001.

States identified as the top 10 "hot spots" for mortgage fraud are Georgia, South Carolina, Florida, Michigan, Illinois, Missouri, California, Nevada, Utah and Colorado.      END

--------

I recall being told by a highschool teacher that we study history because history repeats itself, and in doing so, we may prevent repeating previous mistakes. In theory, that sounds great, but is that what we actually do? Do we learn from our mistakes, or does money blind us as a society?

 

For years buyers have been told to have a home inspected and obtain a Homeowner Warranty Policy ("HOW"). That way the buyer would know the current condition of the property, and if certain things failed, there was a policy to cover them.

Some realtors use the homeowner warranty to help make the sale (by offering the warranty as part of the listing and sale package), and give the prospective buyers greater confidence that they aren't assuming any big risk with their purchase, much like having an extended warranty on a car. 

What is a Home Warranty: It's not an insurance policy and it's not actually even a warranty on the home. Instead, it's a service contract sold for certain systems within the home such as the heating and plumbing, and also sometimes appliances such as refrigerators and washing machines.

It's not a warranty on a home, in the sense that it doesn't cover the walls, floors, roof or foundation. And it's not like an extension of the product warranty the buyer of a new home receives from the builder, which most definitely would cover those items. In some states, it can't even be called a warranty. For instance, in Oklahoma it may be called "home service agreements" while in Virginia it's "home protection insurance."

Sometimes the coverage extends to the pump and motors installed on pools and spas or to an automatic garage door opener, but in most instances it extends just to what's located within the main foundation of the home. The pipes and wires that deliver water, energy, and telecom services are not covered outside the home, nor is the damage caused by broken pipes, blackouts, or power surges. Those are perils typically covered by a straight insurance policy; the difference between a home warranty and a homeowner's insurance policy comes down to a question of coverage. A home warranty doesn't cover damage due to fire or flood, for instance, and it doesn't cover the roof, walls, floors or foundation.

This is also a difference from the builder's warranty typically issued by a construction company to the buyer of a new home, which would typically cover items such as leaky basements, drafty windows, or warped walls. It's also different from a straight maintenance contract, which typically would be sold to cover routine and scheduled tasks such as the annual cleaning of an oil burner. A home warranty covers only failures due to normal wear and tear.

Inevitably, there will be overlaps in coverage between insurance and warranty, or between warranties. In cases where an appliance is covered by either a manufacturer's product warranty or a retailer's extended warranty. Most HOW's let those take precedence, But some warranties cover only parts after a period of time and not the labor, then the HOW would pick up the labor. Transferable warranties on appliances are less common, but in these situations there also might be an overlap with a home warranty.

If you desire a home warranty, investigate the viability of the issuing company before relying on its warranty. The company should be able to provide you with information regarding its ability to pay claims. Some companies are independent companies dealing in the secondary home market, while others are an extension or affiliate of the builder. There is no guarantee by the government or the REALTOR® assisting you that these companies will be there when you need them. Home warranties cover a limited list of items. Make sure that you understand the extent of the "guarantee" or "warranty" before you sign.There is no shortage of consumer complaints against companies offering such warranties, so it is as usual a "buyer beware" situation.

 

So that ARM's run it's course, and it's time to pay the Piper! That's the issue thousands of Americans face daily; to many, its a quagmire that leads to financial ruin and foreclosure. To others, refinancing is the solution they seek. Some will be qualified, and many will not.

Is refinancing your home the answer to your troubles?Often, it's not. Refinancing comes with a slurry of issues,... some old, some new. That burdensome old credit score seems to jump off the page these days like snake eyes at the craps table. Then of course there's those dreaded "points" your friendly mortgage Broker or Banker will charge you on the front and back-end of your loan (after all, they have to earn a living just like you).

Expenses Associated With Refinancing

Discount points fee: This fee represents additional money you can pay to the lender at closing. If you pay more points it will lower the interest rate. Usually, for each point you pay for a 30-year loan, your interest rate is reduced by about 1/8th (or .125) of a percentage point.

Origination Fee: Fee charged by the lender/broker for evaluating, preparing, and submitting a proposed mortgage loan. Origination fees are often expressed as a percentage. A one percent loan origination fee is equal to 1% of the loan amount. Some lenders add origination points into their quoted points while other lenders add an origination point in addition to their quoted points. Origination Points are equal to a percent of the loan amount. 1.75 points is equal to 1.75% of the loan amount. Often the loan agent writing the loan will make 1 to 3 points (%) on your loan.

Application Fee: covers the lender's cost to process the information on your loan. Usually, you must pay this charge at the time you file the application. Some lenders may apply the cost of the application fee to certain closing costs. Generally lenders do not refund this application fee if you are not approved for the loan or if you decide not to take it.

Appraisal Fee: This fee ($150 to $400 depending on the size/price of the property) pays for an independent appraisal of the home you want to purchase. The lender requires this estimate of the market value of the house for the loan. Factors to be considered in determining market value are: present cash value; use; location; replacement value of improvements; condition; income from property; net proceeds if the property is sold, etc. The appraisal is a critical factor in determining how much of a mortgage the bank or mortgage company will approve.

Credit Report Fee: Three major national credit bureaus (Equifax, TransUnion and Experian) supply lenders with the information on your credit behavior. Consumers typically pay $45 to $55 for this report.

Title Search Fee: A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to make sure there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title.

So how do you  maneuver around these barriers?

LOAN RESETTING

What many don't realize, that if they actually pick up a phone and call their lender, they can reset their existing loan and avoid thousands in closing cost associated with a loan broker or banker; and most often, the credit score isn't even pulled. Banks have a "Loan Retention" department that handle's this for existing loans, and the only real requirement is that you be current on your payments.

Now you may not get to enjoy those dirt cheap rates you keep reading about in the paper (not many do), but in most cases you can drop a rate that's creeped up to 8.9% down to around 6%, and believe me, that's a real savings. Best of all, it can be accomplished in a matter of days, handled over the phone, with a general fee of about five hundred dollars.

So even if your not on the brink of financial ruin, but your rates higher than you like, and you can't stomach the idea of paying thousands in closing fee's on a new loan (lowering your rate, but raising your debt) try picking-up that phone and speaking to your lender about resetting your current loan.

Come'on you can do it, don't be shy, no need to refi.