January Newsletter 2009 

 

It’s Time to Take Back the Cape!

By Paula Hellenbrand, President, Cape Coral Association of Realtors, Inc.

Have you had enough of this market? Are you tired of the negativity each day in the media? Would you like to go on an appointment with good news that the bottom is behind us? Did you know that collectively we have the power to change all this?

One hundred years ago (1908) the National Association of REALTORS® was formed to become a united force.  Forty years ago (1969) the Cape Coral Association of REALTORS® was formed to be a united force. It’s time to do as our forefathers and become united again!

How can we make a difference? How do we take back the Cape?

  1. Tell the Truth.
    • Sellers—Sellers need a professional REALTOR® who is experienced and confident enough to tell them the truth about our market, about pricing their home and about preparing their home for sale. We need to be the voice of truth.
    • Buyers—Buyers need to know that the party is almost over. Since December 1, 2008 Cape Coral home inventory has DROPPED 20%. The best priced properties disappear FAST.  They need to know their choices are being limited every day at a rate that will catch most by surprise. If they are waiting to read it in the media—they WILL miss the boat!
    • Sphere of influence—EVERYONE you talk to needs to hear the truth about our market.  Cape Coral is the shining star of Lee County. Not only is inventory down, but sales are UP 154% from December, 2007. The Cape Coral MSA has led the entire state in double & triple digit sales increases for more than the past five months!  The number of sales each month is on track with the number of sales during the real estate boom.
  2. Spread the Truth.
    A very high priority for me this year as your President is to be a leader in spreading the truth to the media.  I will proactively approach the media to increase exposure of this great news that Cape Coral has to share.  The world needs to know that Cape Coral is a great place to live and invest in real estate.
  3. Be the Professional.
    • Educate Yourself—Your Association makes education a very high priority and we do our best to bring you the information you need and want. Take advantage of this training and increase your skills and knowledge.  Know your numbers! Each month I will bring you the latest results of our market so that you can know your numbers and share the knowledge.
    • Eliminate Overpriced Listings—Be the professional and set realistic prices for your listings.  Do our city, our market and yourself a huge favor and DON’T TAKE OVERPRICED LISTINGS. It does no one any good to take an overpriced listing. It increases inventory, discourages sellers and is a poor reflection on your professional ability not to mention your pocketbook. The same goes for underpriced listings—it’s time to be honorable in all we do. We owe it to the public, our city and ourselves.

Enough is Enough! It’s time to TAKE BACK THE CAPE! No where else in the world does anyone have the great privilege and blessing that we have here in Cape Coral, Florida.  Every morning you and I wake up to sunshine, palm trees and a waterfront playland most people hope to visit at least once in their lifetime. 

As your new  President I want you to know that I am here for you and I am very interested in your ideas and suggestions for taking back the Cape as well as leading your Association.  Please join us for our next membership breakfast, January 15th, to learn all about what we have in store for you in 2009!

Now GO and TAKE BACK THE CAPE!

Click here to watch the NBS-2 video:
“Experts optimistic about Cape housing market” 

 

 

Newsletter 2008 

Is Nevada in the Top 10?
FBI 2007 Mortgage Fraud Report Highlights

by: Oliver E. Frascona, Esq.

The FBI released its 2007 Mortgage Fraud Report and Colorado still ranks in the top 10 states. This is a "brief" overview of what is happening out there in general and edited taken directly from that report. See if any of these fit your market.

 

 

 

Mortgage fraud is growing. Suspicious Activity Reports from financial institutions indicated an increase of 31 percent to 46,717 during 2007. Just seven percent of those reports total $813 million.

The sub prime share of outstanding loans has more than doubled since 2003, putting a greater share of loans at higher risk of failure. During 2007 there were 2.2 million foreclosure filings, up 75 percent from 2006. The declining housing market affects many in the mortgage industry who are paid by commission. During declining markets, mortgage fraud perpetrators may take advantage of industry personnel attempting to generate loans to maintain current standards of living.

The top 10 mortgage fraud states for 2007 were Florida, Georgia, Michigan, California, Illinois, Ohio, Texas, New York, Colorado, and Minnesota. Other states significantly affected by mortgage fraud included Arizona, Maryland, Utah, Nevada, Missouri, Indiana, Tennessee, Virginia, New Jersey, and Connecticut.

Several schemes have emerged with the potential to spread as the recent rise in foreclosures, depressed housing prices, and decreased demand place pressure on lenders, builders, and home sellers. Schemes for 2007 included builder-bailouts, seller assistance, short sales, foreclosure rescue, and identity thefts exploiting home equity lines of credit.

 

 

 

The FBI divides Mortgage loan fraud into two categories. Fraud for property entails misrepresentations by the applicant for the purpose of purchasing a property for a primary residence. This scheme usually involves a single loan. Although applicants may embellish income and conceal debt, their intent is to repay the loan. Fraud for profit involves multiple loans and elaborate schemes perpetrated to gain illicit proceeds from property sales. It is this second category that is of most concern to law enforcement and the mortgage industry. Gross misrepresentations concerning appraisals and loan documents are common in fraud for profit schemes and participants are frequently paid for their participation.

"The potential impact of mortgage fraud on financial institutions and the stock market is clear. If fraudulent practices become systemic within the mortgage industry and mortgage fraud is allowed to become unrestrained, it will ultimately place financial institutions at risk and have adverse effects on the stock market."

-Chris Swecker, former FBI Assistant Director, Criminal Investigative Division, Introductory Statement: House Financial Services Subcommittee on Housing and Community Opportunity, 7 October 2004.