« Avoid Foreclosure | Main | O.J. Simpson and His New Trial of the Century »

Homeowners Guide to a Smooth Appraisal

Getting your home appraised can be stressful. I would like to help take some of that stress away and help you get the most out of your appraisal experience. As an experienced appraiser in Southern California with over 20 years experience I would like you to see the assignment from our eyes.

First, remember the appraiser has a difficult job and you can help him/her by being cooperative and even friendly on the phone when he calls to schedule the appointment. Trust me, being nice goes a long way. Before the appraiser shows up, make sure the house is picked up, the areas to concentrate on would be the areas the appraiser is going to need to take pictures of. For me it’s usually the kitchen sink area, the master bathroom counter, fireplace, pool, if you have one. Its important to have the counters cleaned off for the photos, the floors clean, the walls free from marks and damage as this all counts towards your condition rating.

The yards should be picked up, no junk laying around, yards maintained, pool cleaned and operating as this also counts towards your condition rating. When I arrive I always give the owner my business card and ask if I can start in their kitchen. I personally always start in the kitchen, it tells me a lot about the rest of the house. I then work my way through the house counting bedrooms and baths, looking for any damage and any improvements and the type and condition of the existing improvements. I then usually have a brief “interview” with the owner. Any recent improvements, things I would not normally notice? If you want to prepare a brief list of the items you feel adds value, that’s always welcome.

Then I ask permission to go outside and measure the house (usually I prefer to go by myself). I measure the footprint of the home and later turn this into a computerized building sketch. This helps determine if there are “bootleg” additions and if the size matches the tax records. While I am outside I look around the eves and windows for signs of dry rot or water problems. When I end up at the front door I knock and thank them and let them know I am finished. If the appraisal is COD now is the time to collect a check. I have learned over the years not to stay and visit to long. The usual question is “so what’s my house worth” I can not answer that question for many reasons, first I have not finished the appraisal, this was just the beginning and second its bad business to haggle over their value on the doorstep.

It could be several days before I could determine the value. After the inspection which usually only last 15-30 minutes on a small tract house, I am off to go drive-by and shoot the “comps” I have selected to use. These are based on similar location, size and other criteria. After this fieldwork is done its back to the office to compile the report on our required software forms, input the building sketch, import the photos of the subject property, usually 3 interior/feature photos and the photos of the 4-5 comps.

It’s at this time when the comparable specs are added that the final valuation begins to form. After all the plus and minus figures are calculated the appraiser has an “adjusted value range” it’s at this time we take a moment and reflect on the condition, the photos, the conversations we had with the owner or Realtor any bits of information we picked up that help determine that final value.

Then we finish off the report, sign it, proof read it several times both on the computer and in printed form and send it off to the lender/client or whoever the intended user is. Once the lender receives the report you would think our job is done but there is often additional info that is needed, in some cases the lender feels additional comps are needed or they may even “cut” the value. Then the original appraiser needs to submit a rebuttal to a cut value. We do this for the client but also to protect our reputation and our approval status with that lender. If the appraisal is for court work we will be called, on the witness stand to testify to our report and defend it against the opposing attorney and his witness. There are additional fees for this type of testimony.

Written by Clifford Diamond, CREA

cliffthumbnail

Posted by The Law Offices of Donald P. Schweitzer on August 17, 2007 3:24 PM | Permalink

« The Real Danger of Domestic Violence | Main | Homeowners Guide to a Smooth Appraisal »

Avoid Foreclosure

If you’re behind on your mortgage, don’t automatically assume that you’ll lose your house. Quick action might allow you to keep your property.

Raise Funds: Examine your spending to see if you can slash expenses. “People waste lots of money on things like $3.75 lattes,” comments Randy Johnson, author of How to Save Thousands of Dollars on Your Home Mortgage. Can you get a second job? Swap your car for a less costly one?

Contact your lender immediately: Lenders prefer a performing asset over a foreclosure and are frequently willing to work out a repayment plan. You’ll need to provide a detailed financial picture and outline your strategy for staying up-to-date with our mortgage. Here’s an example of what lenders will need: www.housingeducation.org/edi/pdf/edi_worksheet.pdf.

Whenever you’re asking for help from a lender, it’s suggested that you clearly illustrate what you have done, such as selling a car and meeting with debt counselor etc. to avoid future crises. Here are some options they often consider.

Forbearance: Lenders may let you make a lower or no payment temporarily…say for three to six months. You’ll most likely have to make higher payments when you start paying again to bring the loan up-to-date.

Repayment: If you’ve recovered from crisis, lenders may allow you to pay more each month for a set period to make up missed payments.

Modifications: Lenders can reduce interest rates and extend loan terms to reduce the monthly payment.

Short refinancing: Under a short refinance, you refinance and the original lender accepts a payoff for less than you owe. You need to prove that the lender would lose more if the property gets foreclosed upon.

Short sale: You can sell the property and lenders may agree to accept less than you owe. This saves you from having a foreclosure on your credit record.

Before accepting any deal, consult with your accountant. Depending on the type of loan you have, you could owe taxes on forgiven debt.

Scott Wilson
President/Broker

Futura Financial Inc.
El Monte CA
626-442-1888

scotttumbnail marietumbnail

Posted by The Law Offices of Donald P. Schweitzer on August 10, 2007 10:17 AM | Permalink

« Debunking the Prenup Stigma | Main | Avoid Foreclosure »

The Real Danger of Domestic Violence

This past week I had to face a terrible reality: sometimes, there is no way to prevent the real danger of domestic violence. I came to this reality after receiving a phone call from a friend of one of my clients, informing me that my client had been severely beaten by her ex-husband during an exchange of their two children in the courtyard of the Police Department. My client is currently in intensive care and is unconscious. I am told by her family members that her jaw is broken, her left ear was almost severed off, and she suffers from swelling of her brain. The doctors do not know if she will regain consciousness or suffer permanent brain damage.

As you can imagine, this news was devastating to me, as I care very much for my client who I established a close relationship with during the past three years of representing her in her divorce and subsequent child custody battles. I have been agonizing over my work on this case, wondering if I did everything I could do to protect her.

I was hired by my client three years ago. She was previously represented by another law firm, who had obtained a permanent restraining order against my client’s ex-husband. The ex-husband and my client had been married and living together, when he tied her up and beat her while the children were in the house. The ex-husband was arrested and he pled guilty to felony domestic violence. This was the end of the marriage, but only the beginning of a long and drawn out custody battle.

During the marriage, the ex-husband could not keep a job, and by default, he stayed at home and watched the kids while my client worked ten hours a day to support the family. I will spare you the details, but I can assure you that the ex-husband was not a model father. In his attempt to gain primary custody of the children, the ex-husband argued to the court that he had a strong pre-existing relationship with the children, and it was in the children’s best interests for him to continue as their primary caretaker. As to the domestic violence charges, the ex-husband claimed that the incident was an anomaly and he had learned his lesson by taking court ordered domestic violence classes.

The child custody evaluator and the court ultimately disagreed with the ex-husband and granted my client sole legal and physical custody. The restraining order was extended, and the ex-husband was given visitation with the children a few hours during the week. The Judge also ordered that all transfers of the children were to be in the lobby of the local police station.

In preparation for our trial on the custody issue, I reviewed the transcript of the deposition I took of the ex-husband two years prior. I was reminded by how disturbed the ex-husband appeared and the amount of anger he demonstrated towards my client. There was something about his face (especially his eyes) that told me he was crazy and out of touch will reality. During the deposition, the ex-husband blamed my client for breaking up the marriage and declared that she had baited him into committing domestic violence against her so that she could gain the upper hand in the custody battle.

At trial, I relied heavily on the deposition transcript while cross examining the ex-husband and he eventually became unglued. The man’s insanity and hostility surfaced once again. By the end of the hearing, the Judge was able to see the real nature of the ex-husband and ordered limited visitation. The Judge also ordered that the ex-husband attend serious counseling before his visitation could ever be expanded.

At the end of this trial, I had a weird feeling that, in spite of my best efforts and in spite of the fact that we were victorious by convincing the Court to extend the restraining orders and order that the exchanges were to take place inside the lobby of the police department, that the ex-husband still posed a danger to my client. In view of the subsequent brutal beating the ex-husband committed upon my client, I now know that my intuition was correct.

During the beating the ex-husband repeatedly pounded my client’s head against a planter, as their two children watched while sitting in their car a few feet away. The ex-husband was eventually stopped by a bystander and he was arrested and charged with attempt murder. The children are in the care of my client’s parents, who pray that my client will recover.

Did the system fail? Could this brutal second attack have been prevented? Was there something else I could have done? I don’t know. However, I have a few suggestions for those who have been the victims of domestic violence and who still maintain contact with the perpetrator because of child custody issues.

1) Trust you instincts and don’t let your guard down. If you fear that you may be the victim of domestic violence, don’t be shy in seeking all the available remedies with the court.

2) Consider asking the court to order monitored visitation and that somebody else stand in for you to make the exchanges.

3) If possible, bring someone capable of defending you to the exchanges.

4) Ask the court for permission to video record the transfers so that you can report back to the court when the perpetrator crosses the line.

5) Consider bringing pepper spray, a taser gun, or any other weapon that you can lawfully carry to the exchanges.

6) Finally, consider investing in a security system for your house, including surveillance cameras.

As the above case demonstrates, the legal system does not have all the answers and cannot protect victims of domestic violence, in all cases. In light of this reality, you must take whatever steps you can within the law to protect yourself.

Written by Donald P. Schweitzer

Posted by The Law Offices of Donald P. Schweitzer on August 6, 2007 2:31 PM | Permalink

« College Student Dissapears After Meeting Sex Offender Online | Main | The Real Danger of Domestic Violence »

Debunking the Prenup Stigma

happy couple

           People love choices. Typical Americans, and especially Californians, are no exception. In the “golden state”, residents pride themselves on novelty and uniqueness in most aspects of their lives. Inhabitants here scoff at the notion of a lifestyle template—they would rather tailor their own existence to meet their specific needs and desires. Case in point—personal electronic devices. Almost everyone in California has one—but no one device is quite the same. There are so many exciting choices to make before becoming an owner. Such as: what carrier do you choose? What kind of plan do you get? How much do you want to spend each month? How many minutes is enough? What device do you get? A basic cellular phone? Or an “all-in-one”, with phone, e-mail, internet, camera, and music features? Or something in between? Do you get a blue-tooth attachment? This year’s model or last year’s model? What kind of ring tones will you select? What color will you choose? A carrying case? Accessories of any kind? Certainly, there are more decisions to be made. The point is that almost everyone leaps at the chance to make these somewhat silly choices. People love the autonomy and self-design this process allows them.
            Strangely enough, Californians do not seem to celebrate choice and self-governance when entering into the marital relationship. The vast majority of Californians do not opt to create their own “prenuptial agreement” (a before marriage agreement) with regard to resolution of property and support issues in the event a dissolution occurs. Rather, they rely on the default community property system which controls here in California, and in several other states. In fact, many argue that the existence of a prenuptial agreement reveals that an impending marriage is doomed to fail. This group would argue that preparing for the ending of a marriage before-hand, during the “good” times, suggests an underlying deficiency in the relationship. Admittedly, creating a prenuptial agreement requires a couple to venture into territory that may not be comfortable. Imagining the end of a marriage is obviously depressing—and certainly no one wants to be depressed, especially after they have decided to embark on a new life with a partner. Nonetheless, this endeavor forces two people to communicate about important financial issues they may have never discussed before—division of assets (present and future), division of debts (present and future), spousal support, child support, etc. In that way, it could even be characterized as a litmus test for the marriage.
            In any event, the creation of a prenuptial agreement allows a couple to craft their own plan with regard to their marital future. It provides a way to tailor and design the possible termination of a marriage to completely meet your needs and wants. In essence, a prenuptial agreement puts a couple in the driver’s seat, letting two individuals make their own specialized marital laws. So why not take advantage of this ability to self-govern? If one is willing to take so much care in ensuring their favorite song is also their ring tone, surely, they should invest as much time (if not more) protecting their legal interests if a divorce ensues.
            So, for those out there brave (and wise) enough to create their own laws, the following is a brief summary of the legal requirements California imposes upon prenuptial agreements in 2007.

The agreement shall:
1.                  Be in contemplation of marriage;
2.                  Be in writing;
3.                  Be signed by both parties;
4.                  Not adversely affect a child’s right to support;
5.                  Not be in violation of public policy or a statute imposing a criminal penalty;
6.                  Be voluntarily entered into, which is defined as:
a.)   the party (against whom enforcement is sought) being represented by legal counsel at the time of signing the agreement or said representation being expressly waived, in a separate writing
b.)   the party (against whom enforcement is sought) having not less than seven calendar days between the time that the party was first presented with the agreement and advised to seek independent counsel and the time the agreement was signed
c.)    the party (against whom enforcement is sought if unrepresented by counsel) was fully informed of the terms and basic effect of the agreement as well as the rights and obligations he or she was giving up by signing the agreement, and was proficient in the language in which the explanation of the party’s rights was conduced and in which the agreement was written
1.)   the explanation of these rights must be memorialized in an agreement in writing and delivered to the party prior to signing the agreement
2.)   receipt of this explanation (as well as the source) must also be acknowledged in a signed documents
d.)   all documents were signed without duress, fraud, undue influence, or lack of capacity; and
7.                  Not be unconscionable, which is defined as:
a.)   the party being provided a fair, reasonable, and full disclosure of the property and financial obligations of the party
b.)   the party voluntarily and expressly waiving their right to disclosure of the property and financial obligations beyond disclosure provided
c.)    the party having an adequate knowledge of the property and financial obligations.
***If the agreement contains provisions regarding the issue of spousal support, including, but not limited to, a waiver of said support, the party against whom enforcement is sought must be represented by independent counsel at the time of signing.

Clearly, the aforementioned guidelines are intended only to be a starting point in the creation of a prenuptial agreement. Once you and your partner have discussed the ideal plan for your legal partnership, it is most advisable to take said plans to an attorney to have him or her memorialize the agreement.

Written by Kayla Horacek

Posted by The Law Offices of Donald P. Schweitzer on August 6, 2007 1:16 PM | Permalink

Homeowners Guide to a Smooth Appraisal

Avoid Foreclosure

The Real Danger of Domestic Violence

Debunking the Prenup Stigma

Recent Posts

Categories

Archives

Subscribe