Help is available – and it’s free
Alternatives to foreclosure include forbearance, refinancing, loan modification, short sale, and a deed-in-lieu-of foreclosure, all of which are discussed below. If you are interested in exploring any of these, you need to take action. Don’t sit there worrying about it, or try to hang on by emptying out your bank account (or retirement), or prematurely opt for a short sale, or decide “just to walk away.” Contact your lender as soon as you receive a Notice of Default (sent out about 30 days after a missed payment) as well as the resources identified below to evaluate your options. Talk to a tax and legal expert. In this way can you preserve your opportunity to work something out.

A word of caution: there are companies out there charging thousands of dollars to negotiate with lenders. While not illegal, it seems shameful to me for them to charge for services to people already under financial pressure, when the services are already available absolutely free. Don’t pay a company to negotiate with your lender or to provide other services. Go to www.hopenow.com for contact information for a HUD-approved counselor to help you choose which of the below options is best for your situation. Or call 1-800-SAFENET for free counseling. Also, many lenders have a toll-free number and web page that helps property owners assess whether they might qualify for different workout programs.

Making Home Affordable (MHA) is a government program created to help Americans lower their monthly mortgage payments and keep their property, or, if that isn’t practical, to give an incentive to loan servicers and borrowers who successfully avoid foreclosure. MHA’s website, www.MakingHomeAffordable.gov, lists participating loan servicers; provides self-assessment tools and calculators to help you determine if you may be eligible for refinancing, loan modification or other foreclosure alternatives; answers FAQs; connects you with free local counseling services; and provides a handy checklist of documents you need to have in hand when talking to your lender.

The important thing to remember about MHA is that, in order to receive help through the program, you need to attempt the alternatives to foreclosure in a certain order: refinance, loan modification, short sale, then deed-in-lieu of foreclosure. MHA’s website gives detailed information about three programs that help you take these steps: (1) Home Affordable Refinance Program (HARP), (2) Home Affordable Modification program (HAMP), both of which cover more than 85% of all mortgages, and (3) Home Affordable Foreclosure Alternatives Program (HAFA). HAFA won’t take effect until April 5, 2010; however, many lenders are already participating. HAFA offers a $1,000 incentive to loan servicers, $1,000 to help pay off junior lien holders, and $1,500 to homeowners to help with relocation, if the parties are able to work out an alternative to foreclosure, including a short sale or a deed-in-lieu-of foreclosure. These incentives are available now, having been put in place by HAFA’s predecessor, Foreclosure Alternatives Program.

Possible options for homeowners
Generally, here are what your options might be:

Forbearance. Your lender may let you skip or reduce payments if you have a plan to catch up, such as you are expecting to start a job soon, or receive a tax refund or bonus, etc. The plan is for you to get current through reinstatement (one catch-up payment) or a repayment plan (increasing monthly payment until caught up).

Refinancing the loan. Refinancing can reduce the interest rate, reduce the principal balance, or reset the term of the loan for a 30-year fixed from the new current date. If the loan is a Fannie Mae or Freddie Mac loan, you may be eligible for refinancing under HARP; to find out, go to MHA’s website or to www.hopenow.com.

Loan modification. It is encouraging to know that loan modifications are now outpacing foreclosures. Your lender may modify your loan by adding missed payments to the loan amount or reducing the monthly payment by either re-amortizing the loan over a longer period or reducing the interest rate. If the loan modification is done through HAMP, your monthly payment would be reduced on a 3-month trial basis. Then, if you make your payments on time, the interest is kept at a low fixed rate for 5 years, then capped at a low rate for the life of the loan. When applying for a loan modification, stay in regular contact with the lender to make sure paperwork doesn’t get lost. Even so, it can take 45-60 days to get a response.

Short sale. A short sale is when a property is sold for less than the amount owed on it. Many borrowers who are “upside down” in their house (that is, they owe more on it than what it is worth) mistakenly believe they can simply decide to do a short sale: sell the home, give the sales proceeds to the lender, then walk away with no further obligation. This is not the case. Lenders must approve of the short sale. Basically, the lender will confirm three issues: (1) that the seller has a demonstrated hardship situation, that s/he simply can’t continue making payments, (2) that the buyer is qualified to buy the property, and (3) that the offer amount is a fair one.

Borrowers should find short sales done under HAFA easier. Not only does HAFA work with standard deadlines and process, but HAFA short sellers will also get pre-approved sales terms from the lender before listing the property, a huge improvement. In a non-HAFA short sale, the lender may expect you to help make up the shortfall, requiring you to sell assets (including retirement accounts) and bring cash to the closing or else to sign a new promissory note, then start making monthly payments. You will be released from further obligation only if the lender agrees in writing to accept the short sale proceeds as full satisfaction of the debt. (You may ask: but what about in a non- or limited-recourse state, such as Oregon? Isn’t the lender prevented from coming after me for any shortfall? No. Recourse has to do with deficiency judgments, which only apply to foreclosures, not short sales. You must negotiate for full satisfaction of the note in a non-HAFA short sale scenario and get it in writing.) In a HAFA short sale, you cannot be held liable for any shortfall in your first mortgage debt. This isn’t the case with junior lien holders, though. You should seek legal and tax advice if doing a short sale.

What if you don’t know whether or not you are in a short sale situation with your property? One of the first things your agent should do when taking the listing is to calculate your net proceeds from the sale, based on an estimated sales price. In order to get a good figure, s/he will have produced a solid CMA (competitive market analysis) that yields a realistic fair market value. This will tell you whether there will be cash left over after the sale or if it’s possible you will be in a short sale situation.

The advantage of short sales is that they can get you out of your current unsustainable situation so you can be sustainable homeowners in two years if you want to. Homeowners who do a short sale must wait two years before applying for a Fannie Mae loan, compared to five years for a foreclosure. The credit of a homeowner who goes through a short sale is damaged but so as much as with a foreclosure.

“Friendly foreclosure” (deed in lieu of foreclosure). In a so-called friendly foreclosure, the homeowner signs over property to the lender and the debt is forgiven. This may hurt credit but is better than a foreclosure. Lenders are sometimes willing to do this because they will get the property back quicker and probably in better condition than they would in a drawn-out foreclosure proceeding. Homeowners and lenders who do a friendly foreclosure are eligible for the incentives provided by the Foreclosure Alternatives Program ($1,000 to servicers for short sales or deed-in-lieu-of-foreclosure, $1,500 for homeowners to help with relocation and up to $1,000 toward cost of paying junior lien holders to release liens).

Last November, Fannie Mae announced its new Deed-for-Lease Program (“D4L”) that allows eligible borrowers facing foreclosure, or their tenants, to stay in their homes. This minimizes displacement of families and deterioration of neighborhoods that often occurs when homes are left vacant. Under D4L, the borrower transfers ownership of the property to the lender through a deed-in-lieu of foreclosure and the borrower or tenant signs a lease for up to 12 months. (Fannie Mae is still free to market the property sell it to an investor subject to the lease, though.)

Foreclosure
If none of the alternatives work out – or if a property owner chooses not to take any of them – foreclosure will occur. Foreclosure will do the most amount of damage to a borrower’s credit; however, in a non-recourse state or limited-recourse state (like Oregon), the borrower is relieved of any further obligation to the lender.

There are property owners who may choose not to take advantage of any of these options and simply allow a foreclosure to take its course, to just “walk away” from a house. This is a personal decision. A borrower considering this should definitely get legal and tax advice to make sure s/he has a complete understanding of the implications for his or her personal situation. While the information and counseling resources I have listed in this article may provide valuable information, you should not expect a HUD-affiliated counselor to counsel you to let a property go to foreclosure. It is, after all, pretty much their mission to prevent this from happening.

When might someone make this choice? Take, for example, a homeowner who owns a home now worth $65,000 less than what is owed on it. He still has his job and can afford to make the payments but he doesn’t feel that makes financial sense. He would take the short sale option but, since he doesn’t have a hardship situation, the lender won’t go for it unless he makes up the difference. If the lender would reduce the principal by $65,000, he would stay (there are lenders who might agree to this – it is basically selling the property at fair market value without the time and expense of foreclosing, then selling it at that amount anyway). Otherwise, he feels his best choice is to go away financially intact, let the home be foreclosed, rent somewhere else, then wait five years until he’s eligible to buy another property.

The timeline for foreclosure goes like this: A borrower will receive a Notice of Default about 30 days after the missed payment. Foreclosure will be initiated Day #90 after the non-payment; however, the borrower still has three more months (actually three months less 5 days, until Day #175), to redeem the property by catching up with payments. The property will be foreclosed on Day #180. The homeowner then has 10 days to vacate. If the property is a rental, Oregon lessees may remain 60 days after foreclosure (or lease expiration, if earlier) and month-to-month tenants must receive 30 days’ notice, (unless the buyer plans to occupy property, in which case lease tenants must get 30 days’ notice). Requirements for rental properties vary in other states.

Working with a real estate agent
The only one of these options in which a real estate agent can participate with you is a short sale. To advise what option is best for you, for instance, or to try to negotiate a loan modification with a lender is beyond the scope of their practice and is therefore not legal or ethical. Even an agent who is knowledgeable about MHA and distressed homeowner options will steer you to other experts and resources to help you make informed decisions.

If you do go the short sale route, make sure to work with an agent who is knowledgeable about the process. Short sale transactions take longer and have more complications that conventional transactions, so having an able agent navigate through the process is all-important. Also, be prepared to get the necessary paperwork together. Think of it as applying for a loan, only with more paperwork. One-third of all short sales that go into escrow fail and the #1 reason is that sellers do not get the required paperwork together. Your agent will tell you what is needed, but the rest is up to you. Finally, be prepared to wait 45 days or longer for lender approval of an offer. Having an agent who consistently follows up with all parties and tracks the process will help, but s/he is still very limited as to how much s/he can control the process.

Looking forward
Yes, these may be challenging days. Maybe you are procrastinating, feeling overwhelmed by the size of the problem. But, as they say, how do you eat an elephant? One bite at a time. You can get through this, too, by taking the first step and then moving methodically in the direction of a solution. Check out your options, get professional advice, get your paperwork together, and the problem will begin to shrink.

“Though you cannot go back and make a brand new start, you can start now and make a brand new end.” (author unknown)

Disclaimer: As you can see, this is complicated material about which I have presented my general understanding. I am not a legal or tax expert. Please make sure to seek professional legal and tax advice.

When I began this New Year’s tradition, I used to write long missives. It helped me clarify my feelings, I suppose. Now my entries are shorter and more to the point – maybe three or four pages, total – because I like reading past year’s entries a whole lot more if they aren’t clogged up with details and heartfelt reflections about experiences that are no longer as important to me. Here’s a little more explanation about my process in case you might be interested in doing this, too.

Year. I begin by writing the new year (in this case, 2010), then I write the actual date of my writing, which may be a few days before or even after the new year.

Highlights. First, I characterize the year in a few words. “This was a year of….” Then, I name the new friends who came into my life during the year. Not everyone I met, just the ones who seem like true kindred spirits. I also recognize the deepening of friendships. I acknowledge the ending of my important relationships, by whatever means it happened: a falling out, moving away, death, etc. I briefly recount the highlight events of the year.

Last year’s goals. I report objectively and briefly about the accomplishment of last year’s goals.

This year’s goals. I try to keep this list short, usually not more than three or four goals. I do add some detail here, to explain why this is important to me. The goal is usually fairly broad, such as “physically fit.”

January-March routine/focus. This describes what I am going to do for the first three months, such as “no sugar.” You might prefer to use a one- or two-month period.

What I want to say about my life at the end of (new year). I make a few statements about the areas that matter most of all to me, such as “I continued my progress from last year and now feel my life is in good balance. I am physically fit, feel relaxed and spiritually at ease, and am doing well financially. I learned more about the situation for Haitian children and am now actively engaged with an organization to help them.”

Wishing you a new year filled with good health, love and laughter!

Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us.

We ask ourselves, who am I to be brilliant, gorgeous, talented and famous? Actually, who are you not to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our light shine, we unconsciously give other people permission to do the same. As we are liberated from our fear, our presence automatically liberates others.

1. …you can handle the time frame (90 days is not unusual; can be less, can be more).
2. …you are willing to offer a realistic purchase price.
3. …you can handle not knowing until just days before the sale is set to close whether it will actually go through – or learn that it failed, often through no fault of your own.
4. …your offer is not contingent on the sale of another home.
5. …your offer is not contingent on obtaining a loan at or below a certain interest rate.
6. …you are willing and able to write an earnest money check and have the money tied up until the transaction is done.
7. …you are willing to pay for a home inspection (and, even better, an appraisal) without knowing if you’ll actually get the property.
8. …you understand the property may deteriorate between the date your offer is accepted and the closing date.
9. …you have a real estate agent who can skillfully navigate through the short sale process.
10. …you have the patience of Job.

Why on earth, after reading this list of short sale horrors, would anyone want to buy a short sale property? Well, there are two very good reasons. First, maybe you really, really, really like the house. Other properties showed up in the MLS or Trulia, but this is the one that does it for you. Second, you can probably get a pretty good deal. As long as you have a clear understanding about the pitfalls of the short sale process and are OK with that, a short sale purchase might work out well for you.

There’s no doubt that short sale purchases are usually more troublesome, more uncertain and more time consuming than conventional home purchases. Yes, a good buyer’s agent will be able to minimize the hurdles you’ll face. For instance, before you ever submit an offer, s/he will have sized up a potential short sale transaction and gauge whether it has a reasonable chance of success or is almost certainly doomed to failure. How? By assessing the listing agent’s competence and skill, the likelihood that the seller’s situation will pass muster with the lender as a short sale candidate, the number and nature of liens and how they will be handled, and the market value of the property. A good buyer’s agent will also counsel you about putting together a strong offer, including a reasonable offering price as well as terms and conditions that make the offer solid (few contingencies, reasonable time frame, etc.). Finally, the agent will need to stay on top of the transaction as it creeps along, nudging it here and there to keep it on track, following up with the listing agent to make sure the lender is getting what it needs, and so forth. (Remember, though: the buyer’s agent is limited in managing the transaction and must rely heavily upon the listing agent, who is authorized to communicate with the lender.)

Most important of all, though, is simply understanding and being mentally prepared for the extra time and bother you can expect. Once you’ve accepted that, and decide that it’s worth it to you, you should be fine. OK, so what can you expect?

Approval time. Lender approval for a short sale takes a long time: 45 days after the seller has accepted your offer, maybe longer. Why? Your offer is just one part of the Short Sale package that the sellers and their agent put together and send to the lender (which includes financial records, comparative market analysis [CMA] on the property, detailed marketing efforts, etc.). If the seller hasn’t finished putting together the package by the time your offer is accepted, or the submission is incomplete or inaccurate, there will be delays. Even if all is OK on that front, the lender needs to create a file (figure two weeks for that alone), verify all of the seller’s financial information, do its own research about what the property is worth (called a BPO), then crunch the numbers to see if it makes financial sense to accept your offer. If there is more than one loan on the property, such as a 2nd mortgage, a home equity line of credit (HELOC), loan taken for remodeling, etc., each lender must approve the short sale. You may wait several months to hear whether or not your offer has been approved – then have only five days to close the transaction.

Risk of sale falling through. Two-thirds of all short sales that go under contract fall through – this is huge! Remember, you’re under contract as soon as the seller has accepted your offer, even though the lender has not yet approved the sale. The largest reason for short sale failure is the failure of the sellers and their agent to submit a complete, accurate and compelling short sale package to the lender, demonstrating that (1) the seller is truly in a hardship situation and (2) that your offer is a good, solid offer based on current market conditions. A big disappointment is when the sellers, who haven’t been educated about their obligations, balk at the closing table when they find out they are expected to sign a new promissory note with the lender for the shortfall between what they owe and the sales proceeds.

Reasonable offer. I hear a lot from potential short sale buyers who think a lender will be grateful to accept a low offer for a short sale property. “Let’s make a lowball offer and give them a couple of weeks to respond. If they approve it, great. If not, nothing is lost.” This is a total waste of time. The only offer a lender is going to consider is one that has a fair price and that demonstrates the buyer’s commitment to follow through with the purchase. A buyer’s agent needs to do a thorough CMA to determine the property’s actual fair market value. Your offer must be reasonable (figure at least 84% to 90% of fair market value). The offer also has to pass the lender’s “reasonable chance” test. A lender may not seriously consider any offer if it has too many contingencies (like…any!), or the time frame given for approval is too short (60 days or less is too short), or you haven’t already done a home inspection and stated that you’re willing to accept the property “as is,” or you haven’t been preapproved to buy this property (which means you will already had to have paid for an appraisal); or you haven’t applied for a loan yet, and so forth.

You are immediately obligated for earnest money. You need to be prepared to write an Earnest Money check (not a promissory note) to submit with your offer. The earnest money will be held up until the transaction is complete, expires or falls through. It’s OK to come in with as little earnest money as possible, which should be minimum 1% of purchase price or $1,000, whichever is more.

Property condition. Property may deteriorate during the approval process. Make sure you take date-stamped photos of the property the day your offer is accepted, then again near closing. Short sale properties, especially ones that have been abandoned, are more vulnerable to vandalism, destruction and theft than other properties. (I’ve seen kitchens where all of the appliances, cabinetry, granite countertops – and, yes, even the kitchen sink! – had been removed.) Although the agreement may not call for seller-paid repairs, standard real estate purchase contracts should require the seller to turn over the property in the same condition it was in on the date the offer was accepted.

If, after considering these facts, you don’t feel up to the adventure of a short sale transaction, you might consider an REO purchase, which is a property that the bank has already taken back in foreclosure. REO transactions also involve a few wrinkles that conventional home purchases don’t have but are generally more straightforward than a short sale purchase and can usually be bought for lower-than-market prices.

Have questions? Contact me at pat@patflynnrealtor.com or visit my website, www.patflynnrealtor.com.

Natural Thanksgiving centerpiece and table decor. The prettiest Thanksgiving table I have ever laid was one decorated with fallen autumn leaves picked up by my granddaughter and myself (dried out for a day, of course), scattered everywhere on the table. Down the center were a collection of squash, gourds, apples, unripe pears and small pumpkins, the tiniest pumpkins carved out to accommodate tea candles, with a few candle tapers, too.

Holiday decor. Thanksgiving and Christmas should be a bit childlike and homemade rather than sophisticated and glitzy, don’t you think? Place your kids’ school holiday projects around the house with pride, year after year. If you have access to holly, other red-berry foliage, pine cones, evergreen (including trimmings from the Christmas tree), make your own holiday wreath or spray (make a family evening out of it, maybe a pizza night with holiday music or a holiday movie).

Custom gift boxes. This is one of my favorite ideas. Have a gift box-making party with your kids and their cousins or friends. (If you’re having the gang over on Thanksgiving, this might be a great day for it). Put the kids around the coffee table – sans iPod or video games – each with one small, sturdy box, wrapping paper, glue and tape, and let them each create their own beautiful gift box. The older kids can help the younger ones carefully cut and glue the wrapping paper so that the gift box will be truly durable. Then, ask each child to sign his or her very own little masterpiece, which will be used for many holiday seasons to come.

Holiday card gift tags and ornaments. It may be too late for this year, but save the holiday cards you receive that have pictures that can be cut out (such as a snowman or a star), then use next year as gift tags or let the kids make them into a Christmas ornament.

Get the kids involved with the food. If you’re baking, bake at least one thing from scratch and let each child participate. Decorating sugar cookies is an easy project, for instance. For cooking projects, buy peas in the pod instead of frozen ones and have the kids help you shell them. (Do they even know that peas come in a pod?) Or boil down the turkey bones to make a turkey soup together.

This time next year, your kids will have forgotten Thanksgiving 2009 and what they get for Christmas. Give them a gift they will remember: a simple, hands-on, creative holiday experience.


]]> http://portlandgreenrealestate.wordpress.com/2009/11/15/get-kids-involved-in-fun-holiday-activities/feed/ 0 Pat http://portlandgreenrealestate.wordpress.com/2009/11/07/homebuyer-tax-credit-extended-and-expanded/ http://portlandgreenrealestate.wordpress.com/2009/11/07/homebuyer-tax-credit-extended-and-expanded/#comments Sat, 07 Nov 2009 18:03:43 +0000 portlandgreenrealestate http://portlandgreenrealestate.wordpress.com/?p=12 ]]> The Homebuyer Tax Credit bill, recently extended and expanded by Congress, provides up to $8,000 for home purchases made between November 7, 2009 through April 30, 2010 (including purchases that were pending as of November 7). This replaces the bill that had been set to expire at the end of November and includes several important improvements, probably the most significant of which is that now some repeat homebuyers are eligible, too.

What does this bill mean for you?

• If you want to sell your home, it will increase the number of potential buyers for your home, who will be more motivated to buy due to the extra cash incentive.  The amended bill also increases the pool of buyers for your home by offering a tax credit to existing homeowners as well as first-time homebuyers.
• If you are a first-time buyer (haven’t owned a home for more than 3 years), you can receive up to $8,000.  The tax credit is per home purchase, not per person; that is, two people buying one home would be eligible to receive up to $8,000 combined. What if two people want to buy a house together and one has owned a home within the past three years?  Sorry, they are not eligible.
• If you are a repeat buyer, you can receive up to $6,500.  To be eligible, you must have lived in your existing home consecutively for 5 out of the last 8 years.  The new home does not have to cost more than the existing one in order to qualify for the credit.  I have searched online for an answer about eligibility for a person who had owned and lived in a home for 5 consecutive years out of the last 8 years but who has already sold the home. It appears that this repeat buyer is, indeed, eligible for the credit; however, I would like to see clearer language and sample scenarios to support that. Better check with your tax accountant to be sure. What about a couple, one of whom is a first-time buyer and one of whom is an eligible repeat buyer? The answer seems to be no but I can’t see that the question has been definitively addressed yet.

Do you have to repay the tax credit?  No, not if you own and occupy the home for at least three years. Also, it looks like you can apply the credit to either your 2008 or 2009 tax return for 2009 purchases and to either your 2009 or 2010 tax return for 2010 purchases, whichever works out best for you.

Income limits have also been increased. Homebuyers with an adjusted gross income of up to $125,000 ($225,000 for married couples filing jointly) will get the full credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers or between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum, $145,000 for singles and $245,000 for couples, are not eligible for the credit.

The credit applies only to the purchase of homes sold for $800,000 or less.  If a home price is more than $800,000, might a buyer get a partial credit?  Sorry, no.

Contracts to buy a home must be signed by April 30, 2010 – however, buyers have 60 days (until June 30) to close the transaction. This is another improvement over the last bill.  Previously, buyers had to close by a certain date (November 30, 2009) but were left guessing and hoping (along with their real estate agents and mortgage brokers) when they would need to go under contract to meet that deadline.  Many buyers were in the position of committing themselves to the transaction without the certainty that they would receive the $8,000 credit if the deal didn’t close in time.  Under the amended bill, it’s easy: you have to go under contract by April 30 and then have 60 days to close the deal, sufficient in most cases.

Still not sure whether or not you qualify for the credit? For instance, what about buyers with deals that were already “in the works” when the bill was enacted — do they qualify for the credit?  Yes.  This amended bill applies to all transactions that were pending as of November 7 (the day after President Obama signed it into law) and that close by June 30, 2010, as long as the contract is signed by April 30, 2010.  A first-time home buyer who qualified for the credit in the previous First-time Homebuyer Tax Credit bill and who was hoping to meet the November 30 deadline does not have to worry about that deadline anymore.  Also, a first-time buyer who was under contract as of November 7 who didn’t meet the original income requirements but who meets the amended limitations, will now be eligible for the credit.  Also, an existing homeowner who meets the residency and income requirements who went under contract before November 7 but who closes after that date, will be eligible to receive the tax credit.

Now is a unique opportunity to buy a home. With home prices currently low, buyers are getting more value for their money. This, combined with historically low interest rates, makes for more affordable mortgage payments, too.

Please note that I am not an attorney or a tax professional.  This information is accurate to my best knowledge but please do not rely on this information as the basis for any real estate decisions.  Instead, please seek the professional advice of a real estate lawyer and/or tax accountant who can counsel you on your particular situation. You might also go to www.federalhousingtaxcredit.com for answers to FAQs about the credit for both first-time and repeat buyers.

Would you like to receive my Monthly Home & Market Report by email?  Just drop me a line at pat@patflynnrealtor.com.


]]> http://portlandgreenrealestate.wordpress.com/2009/11/07/homebuyer-tax-credit-extended-and-expanded/feed/ 0 Pat http://portlandgreenrealestate.wordpress.com/2009/10/25/notes-from-andrew-weils-lecture/ http://portlandgreenrealestate.wordpress.com/2009/10/25/notes-from-andrew-weils-lecture/#comments Sun, 25 Oct 2009 16:37:18 +0000 portlandgreenrealestate http://portlandgreenrealestate.wordpress.com/?p=9 ]]> I attended a lecture by Andrew Weil, M.D., at the Schnitz last week, the first in ISEPP’s (Institute of Science, Engineering and Public Policy) 2009-10 lecture series.  For those of you not familiar with Weil, he started the integrative medicine movement back in the 1970s (check out his bio on Wikipedia).  Here are a few of the ideas he shared at the ISEPP lecture.

The two main problems with health care in the United States are that (1) all our investment is in remedial, not preventative, medicine and (2) medicine is much too dependent on technology.

Prevention isn’t the same as early detection.  A colonoscopy, for instance, is early detection (which is a good thing) while prevention is a lifestyle that doesn’t support colon cancer.  The biggest challenge that doctors face are lifestyle problems that should be addressed with education and coaching, yet our health care system incentivizes technology-based, remedial medicine, such as surgical procedures, medications, and excessive testing. Health depends on physical, emotional, mental, spiritual and community. Health care providers should model excellent self-care for their patients.

How did we get to believe that drugs are the only legitimate way to treat disease?  The markup on drugs is tremendous and, despite what big Pharma tells us, money spent on R&D is miniscule compared to advertising and marketing.  Pharma exploits the patient’s and doctor’s mindset that drugs are needed.  The average doctor wouldn’t know what to do if s/he couldn’t prescribe.  Doctors put patients on medications and feel absolved of the responsibility to educate patient about the effects of their lifestyle on their health. The U. S. health care system incentivizes the use of technology (including drugs) and disincentivizes (doesn’t pay for) education and coaching by health care providers. There is a lot of pressure to test, to avoid malpractice, but also to earn income and charge back the fixed costs of existing technology, such as MRI machines.  Wherever technical medicine is ascending, so are health care costs.

The main role of health care practitioners, said Weil, is not to heal the body but to remove what is blocking the body’s intrinsic ability to heal.  The body has an incredible ability to regenerate.  The goal should be a state of health with which we can comfortably interact with the environment (including warding off germs). Antibiotics can help by reducing the number of bacteria the body has to battle so that it won’t be overwhelmed. Diabetes II can be put into remission. Dr. Weil said he learned nothing about health or healing in medical school, only disease.  AMA divested itself o tobacco stock only in 1974!

We need a Department of Health Education and to incentivize healthier lifestyles. People eat what’s cheap and available. Agricultural subsidies make junk food cheap and available.  It has been estimated that taxes on soda could pay for health care.  Educate kids!  Educate them to immunize them against pressure. How about video games that let the player experience the effects of different diet scenarios?

Dr. Weil gave five examples of important, but simple, lifestyle changes you can start doing right now:

1. Eat less refined, processed food. Learn to cook at least one fresh, whole-food meal, and make enough for several days.
2. Do breath work.  Twice a day, do two repetitions of the following: breathe in through the nose to a count of 4, hold to a count of 7, and breathe out through the mouth to a count of 8.   In a few weeks, you may increase to four repetitions.  This is transforming, and reduces cravings.
3. Reduce stress through balancing your life better and through specific relaxation techniques, such as meditation, breathwork, listening to music, and laughter.  Laughter must be such that it recruits the involuntary nervous system.
4. Take Fish Oil supplements and Vitamin D, especially here in the Pacific Northwest.
5. Exercise.

(I would add a few others, like drink lots of water, moderate use of caffeine and alcohol, and spend time with friends, family and animals.)

Check out www.drweil.com.


]]> http://portlandgreenrealestate.wordpress.com/2009/10/25/notes-from-andrew-weils-lecture/feed/ 0 Pat http://portlandgreenrealestate.wordpress.com/2009/09/26/what-do-you-want-portland-to-be-like-in-2030-the-portland-plan/ http://portlandgreenrealestate.wordpress.com/2009/09/26/what-do-you-want-portland-to-be-like-in-2030-the-portland-plan/#comments Sat, 26 Sep 2009 22:28:01 +0000 portlandgreenrealestate http://portlandgreenrealestate.wordpress.com/?p=5 ]]> On Wednesday, September 23, Portland City Club’s Agora Committee hosted the Portland Planning & Sustainability Bureau’s presentation of The Portland Plan to interested citizens.  Eric Engstrom, the bureau’s principal planner, encountered a lively, informed and thoughtful group of about 35 people in the upstairs meeting room of Kell’s Irish Restaurant and Pub.  The purpose of the meeting was not to answer the attendees’ questions about where Portland is going in the next 25 or so years, so much as it was to help key City planners identify the questions should be asked of the community at large as The Portland Plan develops.

The Portland Plan will set broad direction for our city for the next 25 years in matters like land use, housing, transit, green spaces (including parks, habitats, watersheds, and access to nature), sustainability, opportunity for education, and other quality-of-life issues.  The initial input for the Plan was from over 17,000 Portland citizens who shared their opinions and values about the built, economic, learning and social future of our city through visionPDX, a public engagement effort launched by Mayor Tom Potter in 2005. (For more info, go to visionPDX.com.)

In its first phase, The Plan will take the public’s input from visionPDX and – again engaging the community – try to develop the ideas into broad policy choices.  A few of the “big ideas” that are being fleshed out are: creating and supporting 20-minute neighborhoods (in which essential services are within 20-minute walking distance); green spaces and connectedness of those green spaces through pedestrian, biking and public transportation corridors; more diverse housing choices; and a vibrant central city.

For instance, take Central Portland, which includes downtown, the Pearl, River Place and South Waterfront.  Its population is expected to increase 277% by 2035 so we will need to add an estimated 3 to 4,000 more housing units every year for the next 25 years or so.  As an aging population with households that have fewer children, our residents will also need more choices of dwellings, such as smaller homes, as well as ADUs (accessory dwelling units, commonly called “in-law units” or “backyard cottages”).

The discussion among meeting attendees ranged from identifying underutilized employment land to recapture declining numbers of local jobs, up-zoning for mixed use along transit corridors, addressing the aging infrastructure problem, and the role of the PDC, which, as one person observed, should be more of a “municipal HMO rather than a critical care unit.”

Clearly, the people attending the meeting were very engaged and informed about issues facing Portland and were, as one attendee pointed out, white and over 40 with few exceptions.   It was resoundingly agreed that a meaningful process means reaching deeply into the community and engaging all of Portland citizens.  Not only to serve the whole community but to benefit from the input from diverse stakeholders of differing ages, economic realities, ethnicities, educational levels, life experiences, and personal priorities.

The presenter assured us that the process is designed to do just that, with the rollout involving small meetings reaching deeply into Portland’s many neighborhoods, facilitated with workbooks with roundtable discussions and multiple-choice surveys about what matters most to residents in their own lives. The rollout for The Plan will go roughly like this:  Phase 1 (making policy choices): now through the end of the year, Phase 2 (building scenarios): February, 2010; and Phase 3 (selecting alternatives): Spring, 2010, with adoption of the plan by the City Council by the end of 2010.


]]> http://portlandgreenrealestate.wordpress.com/2009/09/26/what-do-you-want-portland-to-be-like-in-2030-the-portland-plan/feed/ 0 Pat http://portlandgreenrealestate.wordpress.com/2009/09/05/hello-world/ http://portlandgreenrealestate.wordpress.com/2009/09/05/hello-world/#comments Sat, 05 Sep 2009 15:51:41 +0000 portlandgreenrealestate ]]> I like happy endings.

I had two clients interested in bidding in this auction, and neither walked away with a condo (well, I guess you don’t actually walk away with one, but you catch my drift…).  One client, a lovely young couple, found the 20% down payment requirement a bit much.  The other client, a lovely older couple, didn’t find the down payment a problem but were only willing to pay close to the minimum bid amount, so didn’t bid beyond a certain point.  I will continue to try hard to find both of them a great home at a great price.  But, today, it wasn’t meant to be.

Still, it was a good auction.  Our community was told that there would be no hidden reserve, and that was true. It was a refreshingly straightforward process. While the knowledge and professionalism of real estate agents who hosted the public viewings of Atwater units and readied bidders for the auction was a bit iffy, the auction, itself, was conducted in an efficient and friendly manner, putting even the greenest of bidders at ease. Atwater Place is a quality building, for the most part brilliantly and beautifully designed, right at the river (hence, “Atwater”), LEED Gold certified and in a setting that, with the maturing of its trees and the South Waterfront community, is becoming increasingly verdant, stimulating and welcoming.  Plus, there are so many dogs all over the place!

The potential average discount had been 53% and the units actually sold at an average discount of 35% (not considering the one penthouse unit, #2200, which didn’t receive a minimum bid of $899,000, due probably to its awkward floor plan.)  Potentially, the largest discount possible was 63%, with Unit #1912, a 2,154 square foot unit with 2 bedrooms, 2 and a half baths, a bonus room and gorgeous views to the west, south and east.  The come-on price was meant to draw the shrewd to the auction, and it did.  The actual sales price, $681,000, represented a 36% discount.  This was a bargain, Folks!  The minimum bid price had been ridiculously low, and everyone knew it. The largest actual discount was 46%, for one of the two townhomes on the first and second floors.  This 2,109 square foot unit was originally priced at $849,000 and sold for $462,000, just 8% above the minimum bid.  The smallest discount was 25%, for Unit #908, a 2,355 square foot unit with premium finishes, 2 bedrooms, 2 and a half baths, and a bonus room, with views to the south and east.  The original list was roughly $1.2 million and it sold for $891,000.  I think this buyer did well.  The lowest sales price was $240,000 for a unit originally priced at $346,000, although several other units came awfully close.

The Atwater Place auction was good for the sellers, for the buyers and for Portland.  Buyers got a very good deal, ranging from 25% to 46% off the original list prices; the sellers sold 40 units at a 35% discount; and the local housing market got a little boost today.


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