Real Estate Investors Wish They Were Partners After Developer Filed Chapter 7 Bankruptcy

Utnehmer v. Crull (In re Utnehmer)  12-1362  (Opinion released last week! 10/10/13) Developer may erase debt to investors during bankruptcy proceedings because their loan agreement for luxury home project did not make them business partners. In 2005, a real estate developer purchased a million dollar property in Venice California.  However, it was apparently a junk property.  The developer wanted to tear down the structure and build from scratch, resell it and make a healthy profit.  However, they did not have enough money. Enter Patrick and Mary Crull.  The Crulls loaned the developer $100,000.  The goal was to rebuild the property in one year.  However, the Great Recession caused a change in plans.  In 2008, the project was completed and sold for $3,725,000. The real estate developer sold the property for about 2.5 million more than what he bought the property.  Unfortunately, the sale proceeds were used the money to pay back other creditors, but did not pay back the Crulls. The Crulls were mad!  They filed a lawsuit.  The Developers never answered the complaint because they knew that they were going to be forced to file bankruptcy.  The Crulls were easily able to obtain a judgment of $213,645.17 for their $100,000 investment. The Developers countered the judgment by filing a chapter 7 bankruptcy petition. They named the Crulls as debtors and sought to discharge the debt.  The Crulls were forced to file a complaint inside the bankruptcy proceedings and asked the court to rule that the Developers could not discharge the debt to them via this bankruptcy. At the trial, the bankruptcy court found that the loan agreement for bankruptcy created a partnership between the Developer/debtor and the Crulls, and because of that partnership, Developers'/Debtors' debt to them could not be discharged. The Developers appealed the trial court and won!  The appellate court reversed the bankruptcy court. Bankruptcy Code Section 523(a)(4) provides that if a person filed for bankruptcy under a chapter 7, he cannot get rid of debts he owes, which occurred due to his fraud while acting in a fiduciary capacity. In California, business partners are fiduciaries within the meaning of Section 523(a)(4). Here, however, the loan agreement between the real estate developers and and the Crulls were not good enough to create a partnership relationship. What is interesting to note is that the loan agreement made reference that the Developers and the Crulls were going to form a partnership in the future.  But because it was a mere idea to form a partnership in the future, it was not enough to form a partnership.  Thus, the appellate court concluded there was nothing in the loan agreement that established any intent to create a partnership at any point. The court concluded that because there was no partnership agreement between the real estate developers the Crulls, they did not owe a fiduciary duty.  As a result, the debt is discharable. This opinion by the court was published last week.  The Crulls are probably still kicking themselves for electing to be lenders instead of partners on this Venice beach property.    Photo Credit: http://www.flickr.com/photos/huffstutterrobertl/

This article was written by California Attorney, Kenneth Jorgensen. To find out more, or to contact Ken, please visit his websites at www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com

A Diamond in the Rough

For several years I have been driving by a simple little house near St. Peter, MN just across the Minnesota River. It always catches my attention and I have wondered how old it is, who built it, who lived there and how has it survived.  It is a small, simple building that looks to be a typical example of the first generation of houses built during the settlement era in the upper Midwest.  Although houses of this sort used to exist by the thousands in Minnesota, very few have survived unaltered.  This Fall I finally got my courage up and decided I would introduce myself to the owner.  Beside the house is Nelson Imports, an auto repair shop specializing in Mercedes, and I met the owner Josh Nelson who graciously showed me the building.

The mystery house near St. Peter, MN. 

As you can see there isn't much to the building. It is in good condition and hasn't been cut up or altered to the point that the original structure can't be easily identified. The earliest part of the house is the section on the right with the front-facing gable.  The addition on the left was added a few years later, most likely as the family grew and separate kitchen space was needed.  Josh knew that the house had been lived in up into the early 1960s and that it has been vacant ever since.  He also had heard that it had been used as the first railroad depot in St. Peter. Since I am fascinated by vernacular architecture like this humble little house and the stories of the people who lived in it, I couldn't help but offer to research the building's history.

Stay posted through the Fall as I start studying this little gem and learn all about its story!  

Plus, if your C Class needs brakes or the "check engine" light keeps coming on, stop by and see Josh at Nelson Imports in St. Peter and he will be sure to take good care of you and your Mercedes. 

New Bern Home Sales

Weekly Update-Home Sales for New Bern-Craven County Market

There are currently 1026 homes for sale in Craven County.

In the past two weeks, 51 homes closed in Craven County. (week ending 10/6)

$12,000.-$100,000=12 sales.   In this price range there are 164 homes for sale!

$100,001-$150,000=12 sales.   In this price range there are 229 homes for sale!

$150,001-$200,000=12 sales.   In this price range there are 257 homes for sale!

$200,001-$250,000=9 sales.     In this price range there are 136 homes for sale!

$250,000-$300,000=3 sales.     In this price range there are 56 homes for sale! 

$300,001-$1,000,000=3 Sales. In this price range there are 177 homes for sale!  

            

Of the sales in the two past weeks, 4 were Waterfront homes. 

Of the 23 sales this past week 5 were  Bank Owned properties. 

There was 0 waterfront lots sold in the past week. 

There were 4 interior lots sold in the past two weeks. Note-3 of these were in Carolina Colours

There were 1 commercial buildings sold in the past two weeks. It sold after being on the market 447 days.

Here is how the sales this week compare to sales for the same 2 weeks in prior years.

2013=51 sales

2012=45 sales

2011=41 sales

2010=48 sales

2009=36 sales

If you have any questions about the real estate market, or if you would like a custom report for your neighborhood, send me an email.

Partition of Property: What Happens When A Lawsuit is Filed

What happens if you are required to file a lawsuit seeking partition?  I recently read a case that went into details of how a typical partition case unfolds in litigation.  The facts are from Martin v. Martin, B198405 (Cal. Ct. App. Apr. 23, 2008).

In the Martin case, "Thomas" and "Ruth" were ex-spouses that co-owned a commercial property. Through the years, they split the rental income.  After a number of years, Thomas wanted to sell the property.  Ruth did not.  Thomas was forced to sue her.  Here's how the case was litigated at the trial level:

On May 4, 2005, Thomas filed a complaint for partition against Ruth. The complaint sought a sale of the property, and a division of the net proceeds of the sale. On June 13, 2005, Ruth answered the complaint and alleged various affirmative defenses, including claims for credits and offsets in connection with alleged fraudulent misrepresentations made by Thomas.  

The superior court set the matter for a mandatory settlement conference (MSC). At the March 29, 2006 MSC, the parties orally agreed to sell the property and equally divide the net proceeds.  

On June 2, 2006, counsel appeared in superior court and represented that the parties had agreed on a broker to list and sell the property. The court issued an order appointing the broker. The court also set a trial date of October 23, 2006.

On August 21, 2006, the parties accepted an offer for the sale of the property. The parties executed a purchase agreement and escrow instructions.

The escrow instructions memorialized the parties' earlier agreement in principle to equally distribute the net sale proceeds without offsets.

Ruth was fighting Thomas on selling the property.  She forced Thomas to spend attorney fees and costs before she agreed to list the property.  I am sure that her attorney advised her that she was going to lose her case.  Regardless, she decided it was worth paying a lawyer to fight a losing case.  Perhaps she was acting out of vindictiveness.  Perhaps she and her attorney were using the lawsuit to negotiate more favorable terms for her benefit.  Unfortunately, this legal opinion does not explore the personal motivations of the ex-spouses.  

Ultimately, Ruth agreed to list the property for sale.  The cost of the sale of the property was greatly inflated because of the court and attorney fees.  

Ken Jorgensen, California Attorney
www.fresnolawgroup.com

Photo credit: http://www.flickr.com/photos/victoriapeckham/

New Home Sales in the New Bern area.

New Construction Home Sales in the New Bern Market

So, how is new home construction faring in Craven County? If you listen to the national media things are looking rosy for new home sales, and I am sure they are in certain areas of the country. However, in Craven County new home sales are still lagging as demonstrated in the numbers below. Take a look, and then we will try to analyse why this might be the case. 

New Home Sales through 10-2.

2013=141

2012=184

2011=179

2010=232

2009=235

2008=269

2007=423

2006=526

2005=491

2004=160

Last week the news reported Fannie Mae officials were saying the recent increase in mortgage rates held new construction home sales back last month. In my opinion this is not the real underlying reason. It is the weak economy, lack of real jobs, and that new home prices have continued to rise while existing home prices have fallen. This has made existing homes more attractive to most buyers.

 Last month, my wife Jana, ran an ad on Craig's List for a Real Estate assistant to help us process paperwork. We had one MBA, and at least 8 recent college grads apply for a job that starts at $24,000. While we are delighted to get such quality applicants, I don't think an MBA will find this a rewarding career. My point, it is still a tough job market in this area and throughout most of the country.

Of the new homes sold this year only 4 have sold for over $250,000. What does this say? Many if not most of the new home sales were to young Marines that are in the $150,000-$200,000 price range. Marine officers that use to buy in the $250,000-$300,000 are opting to rent now instead of buying. The protracted weak economy has caused many folks that have good jobs to stay where they are for fear of losing their jobs.

Also, many of the retires relocating to this area are looking in the $200,000-$250,000 price range whereas they use to be looking in the $250,000-$350,000. They can find an existing newer home in the $200,000-$250,000 with the amenities they want. Because of the increase in regulation and in many instances material cost, builders simply cannot build a new custom home on a .3 acre lot and stay within that price.

When the economy turns there will be a pent up demand for home builders. Until then, my advice to home builders is to reinvent yourself and expand into other areas of construction such as remodeling, insurance restoration, and small commercial contracting.

Real Estate Agents: New Case Regarding Disclosures

A recent case was published regarding a real estate's agent duty to disclose dangerous conditions. While most agents know of the duty to disclose, real estate agents should read on to see how this court applied the rule . . .  

In Hall v. Aurora Loan Services, LLC (2013) 215 Cal.App 4th 1134, a buyer's agent was showing a home to a couple.  The home listed a "bonus room" in the attic.  The room was was accessed by a pull-down ladder from the ceiling.  As her clients went up the ladder, she warned them to be careful.  She then started to climb the access ladder.  As she climbed the ladder, a hinge holding the ladder together came undone.  She plummeted to the ground, breaking her leg pretty bad.  

The buyer's agent sued the owner of the property, Aurora Loans (REO) as well as the listing agents.  The listing agents said they did not know the stairway was in bad shape.  As such, they had no duty to disclose the dangerous condition.  They also said the dangers of an attic ladder are obvious and should have been known to the buyer's agent as well.  The listing agents' attorney filed a motion to get them out of the case.  The trial judge agreed with the listing agents and ordered the sale agents out of the case. 

The buyer's agent appealed the trial court's ruling to the appellate court and won!  The appellate court overturned the trial judge's ruling.  The appellate court held that the listing agent could have known the ladder might have fallen apart because of a property inspector's report delivered to the listing agents.    

Here is the scary part for listing agents: the property inspection report was pretty bland.  There was nothing special about the report.  Here is a quote from the court about this inspection report:    

It is true . . . that the recommendation to remove and replace the stairway ladder was buried in a long list of suggestions for mostly ordinary or cosmetic repairs. But the recommendation to replace the stairway ladder suggests at least the possibility that it was worn or broken. For all the listing agents knew at the time, [the property inspector] recommended the stairway ladder be replaced because he believed it would soon collapse. Yet there is no indication in the record that the listing agents did anything to follow up with [the property inspector] about the reasons for his recommendation or to inquire further into the stairway ladder's safety.

The sad part is that the property inspector later testified in his deposition that he did not believe that ladder was going to collapse.  He only recommended the ladder to be replaced because he thought the ladder system to gain access to the "bonus room"  was a "crappy product" and that it "looked bad."  

Thus, this case shows that listing agents should read those inspection reports and follow up with and make warnings about the recommendations.    

Ken Jorgensen, California Attorney

www.fresnolawgroup.com

Photo Credit: http://www.flickr.com/photos/richardharrod/

Home sales in Pamlico County

Good news. Pamlico County home sales are up. Below are home sales in Pamlico County for the past few years. As you can see they are heading in the right direction.

9-27-12 through 9-26-13=112 homes sold

9-27-11 through 9-26-12=93 homes sold

9-27-10 through 9-26-11=86 homes sold

9-27-09 through 9-26-10=74 homes sold

9-27-08 through 9-26-09=66 homes sold

Not really sure why sales are up. However I will speculate that because Pamlico was hit harder than Craven in the housing bubble, perhaps their rebound is a little more lively than ours. Whatever the reason, sales are rising.

www.newbern-nc.info

My Easement is Wider than Your Easement!

Many properties in Central California are accessed by easements.  An easement road is the right to cross someone's property to get to another property.  If the easement is written down, it is called an express easement.  In this article, I wanted to address the issue of the width of an easement road in California.  

In Scruby v. Vintage Grapevine, Inc. (1995) 37 Cal.App.4th 697, the plaintiffs owned some land with a house in the Napa Valley.  The defendant owned a winery next door.  Plaintiffs were landlocked.  They had to travel over a 52-foot-wide roadway and utility easement across the defendant's property.  

Here is where the dispute arose:  The plaintiffs only used 15 feet of the 52 foot wide easement. They became enraged and sued the wine maker when it put wine equipment on the part of the easement plaintiffs had not used.  The plaintiffs lost the lawsuit.  The court held, “that a deed granting a nonexclusive easement of a specified width does not, as a matter of law, give the [plaintiff] the right to use every portion of the easement. … [T]he [defendant has] the right to place improvements upon the easement as long as they do not unreasonably interfere with the right of the owner of the dominant tenement to ingress and egress.” (Scruby, supra, 37 Cal.App.4th at pp. 700, 708).  In reaching this conclusion, the court noted (among others) the following “controlling principles of law”: (1) “The owner of the dominant tenement must use his or her easements and rights in such a way as to impose as slight a burden as possible on the servient tenement”; (2) “Every incident of ownership not inconsistent with the easement and the enjoyment of the same is reserved to the owner of the servient estate”; (3) “The owner of the servient estate may make continued use of the area the easement covers so long as the use does not ‘interfere unreasonably’ with the easement's purpose”; and (4) “An obstruction which unreasonably interferes with the use of a roadway easement can be ordered removed ‘for the protection and preservation’ of the easement.”   (Id. at pp. 702–703.) 

Therefore, the key point is that express easements will not be interpreted by courts to unreasonably interfere with a property owner's right to use property.  

Ken Jorgensen, California Attorney
www.fresnolawgroup.com

New Bern Home Sales

Neuse Harbour Active homes for sale by price range=9 Pending sales=2 Active homes for sale by price range $200,000-$234,000=2 $309,000-$369,000=2 $550,000-$699,000=2 $,799,000-$979,000=3 There were 5 home that sold and closed in Neuse Harbour in the last 12 months. The most expensive house sold was $383,150.	Stately Pines Current homes on the market=5 Pending sales=5 Active homes for sale by price range $140,000-$200,000=4 $635,000=1 There were 5 homes that sold and closed in Stately Pines in the last 5 months. The most expensive house sold was $601,000.
Carolina Pines Current homes on the market=21 Pending sales=5 Active homes for sale by price range $100,000-$150,000=5 $159,000-$200,000=7 $207,000-$240,000=9 There were 16 homes that sold and closed in Carolina Pines in the last 12 months. The highest priced home sold was $290,000.	Tucker Creek Current homes on the market=10 Pending sales=6 Active homes for sale by price range $154,000-$200,000=5 $220,000-$260,000=5 There were 10 homes that sold and closed in Tucker Creek in the last 12 months. The highest priced home sold was $224,000.

Home Sales to date by year.

Total homes sold January 1-Sept 22- 2010=924

Total homes sold January 1- Sept 22- 2011=915

Total homes sold January 1- Sept 22-2012=953

Total homes sold January 1- Sept 22-2013=1103

Note, of the 1103 homes sold this year, 241 of them were Bank Owned.

There are currently 1505 homes listed for sale in our multiple listing service. We are selling homes at a rate of about 122 a month. A buyers market is defined as more than 6 months of home inventory. It remains a buyer’s market as we currently have about 12 months worth of inventory. With that said, each neighborhood and price range is unique and your could be better or worse than the overall market.

    www.NewBern-NC.Info

Some Good News for the Real Estate Industry

Realty Trac is a private company that tracks foreclosures across the country. I have been following them for years and trust their data. They recently announced that foreclosure filings in August hit its lowest level in eight years. Also, according to Realty Trac underwater mortgages, those who owe more on their mortgage loans than their homes are worth, is declining. This is certainly a positive sign for the housing industry. 

August's initial foreclosure filings fell 44% to 55,575, just below the 56,063 that were recorded in October 2005. The foreclosure crunch began in summer 2006, at about the same time that housing prices hit their peak. We are still seeing quite a few foreclosures in the New Bern market although I believe the number may be decreasing. 

Nationally, the peak in foreclosures was September, 2010. However, even though the number of foreclosure filings is falling, we will continue to see high levels of bank owned homes for sale for several years. The reason. There can be a 1 to 2 year lag between when foreclosure filings occur and when the bank actually takes back ownership.

The state with the highest rate of foreclosure filings was Nevada, with one for every 359 homes. 

In Florida, one of every 383 homes had some kind of filing, the second highest rate among states. Ohio, Delaware and Maryland filled out the top five.

If you have any questions give me a call.

New Bern Real Estate News

Plastic Pink Lawn Flamingos: How to Get HOA Approval To Put On Lawn

Let's pretend you love pink plastic lawn flamingos...

You live in the best condominium complex in Fresno.  However, lately you noticed that your love for plastic pink lawn flamingos has grown perversely large.  You have this urge to share this passion with your neighbors by placing them on the front yard.  How are you going to get the HOA to approve of your plastic feathered friends being placed in the front yard?    

A HOA, or homeowners association, is responsible for the maintenance and upkeep of any common areas, such as landscaping, swimming pools, and tennis courts in certain housing communities.  If you live in one, you are required to join. The HOA has bylaws, which you are required to obey.  Some bylaws are common sense.  For example, you would likely be not allowed to place plastic pink flamingos in your front yard.   

HOA bylaws are not etched in stone. You might be able to talk the association into an exception if you can present your case well. Here is how you can obtain an exception to the HOA bylaws and get your pink plastic lawn flamingos placed in your front yard:

1.  Offer a Compromise:  Many HOAs will be concerned that if they allow one resident to break the rules, all the homeowners in the neighborhood will be lining up to receive special treatment.  While you might love a neighborhood littered with lawn flamingos, most neighbors would not agree.  However, a compromise is worth a try. Talk to the association. Maybe you will be permitted to place one flamingo in the lawn.  Or, perhaps the HOA would allow a pink flamingo prominently displayed in your home's front window.

2.  Talk to other Neighbors: Take your case to your neighbors.  If you want to plant a tree, demonstrate how the tree will provide extra shade, which is beneficial to everyone in the summertime.  (Pardon my change in example.  I can't think of an example of a beneficial use of lawn flamingo.)  Showing up to an HOA meeting with a team of concerned neighbors who want more trees can position you to get what you want, regardless of what the bylaws say.

3.  Be Reasonable: If there is something in your HOA bylaws that is causing a problem for you, approach the topic reasonably. Don’t act combative or confrontational. Hitting a board member with one of the plastic flamingo's is not going to curry a favor.  Rather, ask the HOA what you need to do obtain an exception. 

Good Luck!

Ken Jorgensen, California Attorney
www.fresnolawgroup.com

Photo Credit: joeysplanting

New Bern Weekly Home Sales Report

Weekly Update-Home Sales for New Bern-Craven County Market

There are currently 1056 homes for sale in Craven County.

In the past week, 15 homes closed in Craven County. (week ending 9/8/13)

$24,000.00-$100,000=5 sales.   In this price range there are 160 homes for sale!

$100,001-$150,000=2 sales.   In this price range there are 229 homes for sale!

$150,001-$200,000=3 sales.   In this price range there are 256 homes for sale!

$200,001-$250,000=5 sale.   In this price range there are 149 homes for sale!

            

Of the sales in the past week, 1 was a waterfront home. It closed for $185,000. 

Of the 23 sales this past week 1 was a Bank Owned property. There are currently 45 Bank Owned properties for sale in Craven County.

There was 0 waterfront lots sold in the past week. 

There were 3 interior lots sold last week. They were all in Fairfield Harbour and the highest priced was $2,500.00. 

There were 0 commercial,buildings or lots, sales in the past week. 

Here is how the sales this week compare to sales for the same week in prior years.

2013=15 sales

2012=14 sales

2011=20 sales

2010=17 sales

2009=23 sales

Another feather in New Bern's Cap

Below is an awesome article that I saw about New Bern.  Check it out.

http://www.frontdoor.com/places/what-its-like-to-live-in-new-bern-nc

Learn About the recent changes to Flood Insurance

There have been some changes to the Federal flood Insurance Program that may affect you if you live in or are considering buying a home in a Flood Zone. Click the link below and continue scrolling down toward the bottom of the page to learn more.

Click Here to learn about changes to Federal Flood Insurance.

Steps to Take When A Neighbor's Tree Threatens Your Home

Your neighbor's tree looks like it's going to fall on your house. Here are three steps of what you should do: 

1.  Talk to your neighbor.  Landowners are responsible for inspecting and maintaining the trees on their property. If your neighbor does not remove the dangerous tree, and the tree does in fact cause damage, your neighbor can be held liable. If you have spoken to your neighbor about the tree issue, and he has not done anything about it you do have laws that protect you.

2.  Call the electric company and/or the city.  Most cities have ordinances prohibiting property owners from keeping dangerous conditions on their property. If you call your municipality, they may remove the tree themselves or order your neighbor to do it. Utility companies may also have an interest in the tree's removal if the tree's condition threatens any of its equipment. A simple call to a utility company may prompt them to remove the tree themselves.

3.  Take the neighbor to court.  You can file a nuisance claim.  The tree may constitute a nuisance, by interfering with your use and enjoyment of your own property. You could file a nuisance claim, and if the court finds that the true is a nuisance, the court may order the tree removed. Hopefully, you will not have to go that far. 

Ken Jorgensen, California Attorney
www.fresnolawgroup.com

Painted Floors in the Victorian Home

Late 19th century card of sample
floor colors from the New England
Paint Company

Painted floors were common across the country during the 19th century. Durable floor paints would seal soft pine flooring making them less liable to stain and easier to clean.  An 1850 edition of Miss Leslie's Lady's House Book recommends cleaning heavily soiled, common pine floors using:
        

   "an old tin pan with some gray sand in it; and after soaping the brush, rub on it some sand also."

Abrasive sand or pumice could remove stains but would also erode the soft, unpainted floor boards. Since painted and sealed floors would not absorb grease or stains, they could be easily cleaned by wiping or gently brushing with warm soapy water. 

Commercial, ready-made floor paints were made durable and glossy by the addition of resins that were otherwise used to make varnishes. These resins, including copal and colophony, were soluble in boiled linseed oil and were added to oil paint when it was mixed to provided the hard, glossy coat.  Painters and homeowners also used regular, home-mixed oil paint and then applied a protective topcoat of varnish.  Alvin Wood Chase's 1890 receipt book (or recipe book as we say today) Dr. Chase's third, last and complete receipt book and household physician suggests: 

"Paint the whole floor with a mixture of much boiled oil and little ochre for the first coat: then after it is well dried, give two more coats of much ochre and little oil; and finally finish with a coat of first-rate copal varnish.  It is extremely durable for floors, windows, or outside, such as verandas, porticoes and the like." 

Painted bedroom floors from the 1855
Folsom House, Taylor's Falls, MN.

The Folsom House, an 1855 Greek Revival home in Taylor's Falls, MN, an early Minnesota lumbering town, features floors painted in a common, blue-gray and  a yellow ochre like that in Chase's recipe above.   

Close-up of Folsom House floor
stenciling.

Stenciling was a popular way to decorate painted floors to make them resemble expensive carpets or marble. Stenciled patterns often featured repeating floral or geometric patterns and sometimes included contrasting borders around walls which mimicked carpet borders. Stencils were made from tin sheets which had designs cut out with punches or shears. The stencils were laid on the floor and the paint brushed on leaving the painted pattern on the floor. The process was repeated until the floor was covered with the pattern.   The Folsom House has a few remnants of a repeating, bottle green floral design at the top of the stairway. Examples of  floor stenciling are rather uncommon today as they were often obliterated by foot traffic, removed when painted floors went out of fashion or destroyed when linoleum or carpet was installed. 

The Folsom House is located in Taylor's Falls, MN (about 40 minutes northeast of the Twin Cities Metro) and can be visited between Memorial Day weekend and September, Friday through Sunday between 1 and 4 and on holidays between 1 and 4.

New Bern Home Sales-Aug.12-Aug.18

Weekly Update-Home Sales for New Bern-Craven County Market

There are currently 1099 homes for sale in Craven County.

In the past week, 16 homes closed in Craven County. (week ending 8/18/13)

$65,000.00-$100,000=4 sales.   In this price range there are 172 homes for sale!

$100,001-$150,000=5 sales.   In this price range there are 235 homes for sale!

$150,001-$200,000=3 sales.   In this price range there are 260 homes for sale!

$200,001-$250,000=3 sale.   In this price range there are 160 homes for sale!

$250,000-$300,000=1 Sales.   In this price range there are 69 homes for sale! 

$300,001-$1,000,000=0 Sales. In this price range there are 203 homes for sale!  

             

Of the sales in the past week, 3 were waterfront homes. They were all low end townhomes. They sold for $85,000. $88,500, $122,000.

Of the 16 sales this past week 1 was a Bank Owned properties. 

There were no waterfront lots sold in the past week.

There were 1 interior lot sold last week.

There were 0 commercial buildings or lots sold in the past week. 

Here is how the sales this week compare to sales for the same week in prior years.

2013=16 sales

2012=23 sales

2011=22 sales

2010=18 sales

2009=21 sales

As you can see from these numbers, sales in 2013 during the past week were less than any of the previous 4 years. I am not sure why this is the case, but  I will speculate that it is because the economy is still weak in many parts of the country and unemployment remains high.

What is a Deed of Trust?

A "deed of trust" can be a confusing term because there are "grant deeds", "quit claim deeds", "warranty deeds", etc. 

A deed of trust is simply the legal document that a lender has you sign to secure its loan with you to purchase real property.  More specifically, when you borrow money you will sign a promissory note.  The promissory note says that the lender promises to lend money and you agree to pay the lender back.  If you do not pay the lender back, the deed of trust says that it can sell your house in order to get repaid.  In other words, they can foreclose on the house. 

Thus, at the time you borrow money to purchase a home, the title company will likely record a "grant deed" -- giving you title to the house -- along with a "deed of trust" -- securing the lender's promise to loan you money.

A deed of trust usually has three parties: 1) the "trustor", who is you, the person who owns the property.  2) the "trustee", a third party person or entitly who is granted power to foreclose and reconvey the promissory note; and 3) a "beneficiary", which is the lender who loaned money to purchase the property. 

Ken Jorgensen, California Attorney
www.fresnolawgroup.com


Photo credit: http://www.flickr.com/photos/alancleaver/

New Bern-Craven County Home Sales Year to Date

So, how are home sales in New Bern and Craven County year to date? Let's take a look and see. 

Jan. 1- Aug.14 2013=683. Of these 132 were Bank Owned sales.

Jan. 1- Aug.14 2012=615. Of these 71 were Bank Owned sales.

Jan. 1- Aug.14 2011=612. Of these 94 were Bank Owned sales.

Jan. 1- Aug.14 2010=651. Of these 63 were Bank Owned sales.

Jan. 1- Aug.14 2009=622. Of these 94 were Bank Owned sales.

Although the total number of home sales are up this year, they are up by almost the same number as the increase in foreclosures.

The national media reports of big increases in home sales is true in certain markets. These market are by and large areas such as Raleigh, Dallas, Austin, Denver, and some cities on the west coast. Florida, Nevada, CA., and Arizona are showing improvements but you have to remember, they had no where to go but up. Also, some of these markets were declining 1-2 years before the New Bern Market.

As I have been saying for some time, I feel like in New Bern we are at or near the bottom of the market. Don't get your real estate info from the national news, get it from my blog where I will keep you up to date with accurate local real estate news.

If you have any questions about this info or would like more info on home sales in the New Bern area visit my website  www.newbern-nc.info

Best regards,

New Bern Home Sales-8-5-8-11

Weekly Update-Home Sales for New Bern-Craven County Market

There are currently 1094 homes for sale in Craven County.

In the past week, 11 homes closed in Craven County. (week ending 8/11/13)

$8000.00-$100,000=3 sales.   In this price range there are 167 homes for sale!

$100,001-$150,000=4 sales.   In this price range there are 231 homes for sale!

$150,001-$200,000=3 sales.   In this price range there are 269 homes for sale!

$200,001-$250,000=1 sale.   In this price range there are 163 homes for sale!

$250,000-$300,000=0 Sales.   In this price range there are 65 homes for sale! 

$300,001-$1,000,000=0 Sales. In this price range there are 193 homes for sale!               

Of the sales in the past week none were waterfront homes. 

Of the 11 sales this past week none were Bank Owned properties. This was a refreshing change.

There were no waterfront lots sold in the past week.

There were 0 interior lot sold last week.

There were 0 commercial,buildings or lots, sales in the past week. 

Here is how the sales this week compare to sales for the same week in prior years.

2013=13 sales

2012=19 sales

2011=16 sales

2010=13 sales

2009=13 sales

As you can see from these numbers, there are more sellers than buyers and this drives up the days on the market.

Surprise! Discovering Liens In Escrow

What happens when you discover that a property you are selling shows an unknown lien in the preliminary title report?  The first reaction is usually a violent tirade of expletives and the fact finding.  After the shock, here are some possible steps.

Step 1: You should promptly disclose the lien to the buyer and inform them that you just discovered the lien. You may be able to salvage the deal.  Sometimes the lien is not an issue.  Sometimes there will need to be a price adjustment.  Sometimes, you will likely need to mutually cancel the transaction and refund the deposit.  WARNING!!! Do not unilaterally cancel the agreement without consulting with a lawyer about what legal consequences that might have for you and (b) conceal the lien from the buyer while proceeding with the sale.

Step 2:  Explore the basis of the lien.  If the lien was from a prior owner, you may have a claim against the prior owner if the owner misrepresented or concealed the lien from you and if you could not have discovered the lien with reasonable diligence. That claim may still be viable depending on the length of time that has passed since you bought the property from the friend and whether you could have discovered the lien, etc.

Step 3: Explore the lien issue with the title company that insured the transaction when you purchased the property.  The lien could be covered by the insurance company if it could have been disclosed in a preliminary title report but was not.

Disclaimer: If you find yourself in this type of situation, you should consult with a lawyer to obtain proper and fully informed advice based on all of the facts. The foregoing is not intended to constitute such advice or create an attorney-client relationship.    

Ken Jorgensen, California Attorney
www.fresnolawgroup.com

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