Eminent Domain wins out again

By SUZANNE SATALINE, MATTHEW FUTTERMAN and CHRISTINA S.N. LEWIS

New York's highest court ruled that it is lawful for the state to seize private land for use by private developers, clearing a hurdle for a new basketball arena and marking a victory for local governments hoping to spur development.

Associated Press

A New York Court ruled Tuesday that the state can seize property for the proposed Atlantic Yards development in Brooklyn, shown above in 2008.

Tuesday's 6-1 ruling by the New York State Court of Appeals allows the contentious $4.9 billion, 22-acre Atlantic Yards project in Brooklyn to proceed. The project, being developed by Forest City Ratner Cos., could eventually include office towers and apartments as well as an arena for the NBA's New Jersey Nets.

The decision is a blow to private-property owners who have argued that they are defenseless in protecting their ownership rights once a government deems their land necessary for eminent domain, or the "public good." But it boosts developers and government entities in New York that have sought to boost local economies by offering incentives for private developers.

The court's decision echoes one handed down by the U.S. Supreme Court in 2005, when the justices found it was constitutional for a New London, Conn., economic-development corporation to seize private homes and businesses to build a research campus for Pfizer Inc. That decision, Kelo v. City of New London, Conn., set off a firestorm of protest, prompting many lawmakers around the country to amend laws to prevent governments from seizing private land in some cases. New York, however, didn't change its constitution.

In Tuesday's decision, the New York appeals-court judges ruled that the constitution allows the state entity to seize the downtown Brooklyn land to improve blighted conditions. The land owners had argued that the area was a stable neighborhood, and wasn't blighted.

More

• Court Weighing Eminent Domain
• Clearing the Way: Court Allows land seizure for Brooklyn arena project.

Stephen Moore discusses why he is opposed to the state of New York seizing private land for a basketball arena.

But the court ruled that if the definition of blight is to be changed in New York, it would be a matter for the legislature, not the courts.

The lone dissenter in the case, Judge Robert S. Smith, wrote: "It might be possible to debate whether a sports stadium open to the public is a 'public use' in the traditional sense, but the renting of commercial and residential space by a private developer clearly is not."

The ruling ends the constitutional challenges to the project. All have failed, including a case brought in federal court. Three legal challenges remain in state court, including one that contests the state's finding of blight and its environmental review of the land, said Matthew Brinckerhoff, the lawyer for a client who continues to live in a condominium on the site. "We lost and we're disappointed, but they don't have these properties and until they do the fight isn't over," he said.

The New York State Urban Development Corp. said in a statement: "With this major hurdle overcome, we can now move forward with development."

MaryAnne Gilmartin, executive vice president of Forest City Ratner, said, "We're pleased and excited to be heading toward the closing."

Still, the project's future remains in question. At $900 million, the arena, to be called the Barclays Center, would be among the most expensive ever built. Already, the scope of the entire Atlantic Yards project has narrowed for the near term in the face of the poor economy. Over the next five years, Forest City Ratner is planning to go forward with construction of the arena and as many as three rental-apartment buildings, the developer says. The rest of the project, including "Miss Brooklyn," the signature tower designed by Frank Gehry, is on hold due to market conditions.

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Associated Press

Matthew Brinckerhoff, left, the plaintiff's lead attorney, speaks Tuesday in front of Freddie's Bar in Brooklyn, one of the businesses affected by a New York court decision on eminent domain.

The Ratner companies have tentatively secured an investment-grade rating for the roughly $600 million of bonds needed to finance the arena's construction, according to a statement released Tuesday by the state development corporation.

The Atlantic Yards project must issue its bonds and start construction by Dec. 31 to comply with a previous court ruling that limited the ability of privately owned sports teams to qualify for tax-exempt bonds to pay for arenas from which they will derive the bulk of the financial benefits.

Without the tax-exempt status, bankers working on the project say it won't move forward because the bond debt would be too expensive. The state corporation says it will issue the bonds by mid-December.

In addition, the developer still will need to issue $150 million of taxable bonds, which are less likely to prove attractive for investors in this market.

Bruce Ratner, chairman and chief executive of Forest City Ratner, also must close his deal to sell a stake in the team to Russian billionaire Mikhail Prokhorov. Mr. Prokhorov offered to buy an 80% stake in the Nets for $200 million, and a 45% stake in the arena. The ownership deal awaits approval from at least 75% of National Basketball Association franchise owners.

Write to Suzanne Sataline at suzanne.sataline@wsj.com, Matthew Futterman at matthew.futterman@wsj.com and Christina S.N. Lewis at christina.lewis@wsj.com

Printed in The Wall Street Journal, page A3

via online.wsj.com

Looks like the nets will get their stadium over private property owners objections.

Posted via web from Jim's posterous

Hiring Boom in Mortgage Restructuring

By KYLE STOCK

Mortgage restructuring for strapped homeowners has emerged as a rare growth area in the economy as companies in the field keep hiring.

Four of the largest mortgages servicers -- Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. -- have collectively hired almost 17,000 people this year, mostly to work with financially ailing homeowners. With the number of defaults rising, many are planning to keep adding staff.

"We've hired folks, we've transferred folks within the company and everyone is working overtime. All hands on deck is really the right analogy," said J.P. Morgan Chase spokesman Thomas Kelly.

In October, about 12.4% of the 56 million U.S. households with mortgages -- or about 6.9 million households -- were 30 days or more overdue, or in the foreclosure process, according to LPS Applied Analytics, a research firm in Denver.

More on Fins

• Banks Enlist Thousands to Fight Foreclosure

Wells Fargo, which services one in six U.S. mortgages, has almost doubled its staff working on restructurings, adding close to 7,000 employees this year. Citigroup has boosted its staff by about 54%, adding 1,400 positions. In Arizona, one of the states hit hardest by the subprime disaster, Citigroup opened a new service center staffed by 800 mortgage negotiators.

Loan-servicing companies report that people with a wide variety of backgrounds are applying for the jobs, from rental-car service representatives to former chief executives of small mortgage brokerages that went under.

One of J.P. Morgan Chase's best loan modifiers is a former police officer from Jacksonville, Fla., said Mr. Kelly, the spokesman. "She's terrific on the phone with customers because she knows how to calm people down," Mr. Kelly said.

New companies formed in response to the home-mortgage crisis also have been hiring. For example, Private National Mortgage Acceptance Co., dubbed PennyMac, was founded in 2008 by former executives of Countrywide Financial Corp. and now employs about 120 people.

Nate Cadena, who used to sell loans for AmeriCash Mortgage Bankers, is one of PennyMac's loan modifiers. He said his job today isn't all that different: He gets on the phone with customers and tries to figure out how much they can afford to pay each month.

Mr. Cadena, 32 years old, said he used to earn "very lucrative pay" as a loan salesman. But he said that since the economy tanked, he was forced to take a job as a door-to-door salesman, an experience that readjusted his goals and perspective. "It used to be that I wanted to make as much money as I could," he said. "Now it's about a career path and stability."

Executives at mortgage servicers say most workers dealing with borrowers earn between $30,000 and $60,000 a year plus bonuses, and spend their days talking to delinquent or financially strapped mortgage borrowers. The modifiers present a number of options, with the aim of lowering the monthly payment to roughly one-third of household income.

Printed in The Wall Street Journal, page A4

via online.wsj.com

Here's where all the jobs are.

Posted via web from Jim's posterous

Tell me what the offer is?

Why do some agents refuse to understand that they do not determine whether or not they can tell selling agents about mulitple offers. The Seller makes the desicion. In our office, this is determined by the Listing agreement.

Standard of Practice 1-15 Realtors®, in response to inquiries from buyers or cooperating brokers shall, with the sellers' approval, disclose the existence of offers on the property. Where disclosure is authorized, Realtors® shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker. (Adopted 1/03, Amended 1/09)

Often times it is advantagious for the seller to allow you to to disclose that there are other offers and even what those offers are. Wouldn't a buyer bring their best offer if they knew what they were competing with. Yet many agents still think that these are not viable options and are not discussing this important negotiating tool with their sellers.

The flurry of bank owned properties the past few years has complicated the matter. The banks come with their own listing agreement. Now that we are going back to more traditional sales and short sales, it is time for the real estate agents to get back to basics. Discuss it with your seller, then when you get that call, if it is not under contract, answer the question. Can you disclose whether you have other offers, and what those offers are?

Standard of Practice 3-6
REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86, Amended 1/04)

After an offer has been accepted, even with contingencies, it must be disclose to other inquiring REALTORS®

Northern Virginia July 2009 update

Overall, the average days-on-market is slightly above 4 months. This means we are in a normal market – neither a buyer’s market nor a seller’s market.

NORTHERN VIRGINIA ASSOCIATION OF REALTORS

July listings compared to June: Decreased 2% to 7,439.

July sales units compared to June: Decreased 5% to 2,053.

July 2009 Sales Units compared to July 2008 Sales Units: Up 11%.

The average sold price for all homes in July was $460,807, Down 5% compared to 2008


DULLES ASSOCIATION OF REALTORS (LOUDOUN COUNTY)

July listings compared to June: Decreased 2% to 2,238.

July sales units compared to June: Decreased 9% to 477.

July 2009 Sales Units compared to July 2008 Sales Units: Decreased 8%.

The average sold price for all homes for July was $379,501, Down 5% compared to 2008.



PRINCE WILLIAM ASSOCIATION OF REALTORS

July listings compared to June: Decreased 1% to 3,093.

July sales units compared to June: Decreased 1% to 787.

July 2009 Sales Units compared to July 2008 Sales Units: Decreased 22%

The average sold price for all homes for July was $233,202, Down 5% compared to 2008.

Prospecting on an Empty Wallet

Tired of prospecting for clients?

Wouldn't you prefer that they approached YOU?
Generally we don't like cold calling. Nor do we much like sending out dozens of prospecting letters and then getting maybe a 0.5% response.

Why don't we like it? Because we don't like rejection. We don't like feeling that our call or letter has failed. It can be pretty depressing when you have been making cold calls all day with zero response. And that's perfectly normal. None of us like trying our best and then being told NO!

Want to know how to position yourself as an Expert?
1. Write articles for serious publications.
2. Speak at meetings and conferences.
3. Get a book published by a serious publisher.

Not yet ready for all of that? Try these...
Get Involved
•Join organizations
•Join Clubs
•Involve yourself in charity
•Make your actions ring an endorsement of your good name!

Google this, Google that...
•What is your competition up to?
•How can they find you?
•Would you hire you?
•If you do not know what you are up against, how can you possibly Win?

SOCIAL NETWORKING
•Facebook •Active Rain •Twitter •Linked In •Blog about your neighborhood and become the expert

Build a Business Directory
•Connect it to your website •Become the go-to person for info •Pop Bys •Call sporadically •Share the List with other businesses •Get through the "NO's" , Referrals go both ways

Tell 20 Concept!
Promote Listings that are "Coming Soon".
•5 on each side and 10 across the Street
•Use your Commodity •Neighborhood Preview •Neighborhood Barbeque
•Who's in your target neighborhood? •Have you met them?

By Introduction / Family
•Does your spouse prospect for you?
•Parents?
•Children?
•Previous Clients

Everyone must have your business cards

Never neglect your past client database.
The more you keep in touch with your past clients, the easier your job will become. If you don't, you risk the chance that you're sending them the message that they were just another transaction and didn't mean much more to you. That could be a very costly message.
Consider past clients as one of your 'farms'... keep in touch!

Plant Referral Seeds!
•Early and Often •Don't wait until the transaction is complete to ask for referrals. •Referral business reduces your sales expenses and sales cycle.

Use Closing Gifts wisely
One agent delivers a unique, personalized real estate closing gift at closing.
A week later she delivers "something flashy, always with balloons," to the
client at work. "It catches the attention of other people in the office and
gives the client a reason to tell other people about me," she says

Business Cards
Never go to bed without handing out at least 10 Business Cards.
10 per day = Check the Math:
10 X 5 = 50 X 50 = 2500
1% call = 250, 10% buy = 25 Deals X $5000 (avg Com.) - $125,000

It doesn't take a fortune to make one. Just alot of persistence!

New Truth in Lending Law changes - July 30th

Truth In Lending Changes Take Effect July 30, 2009



Predatory lending practices played a large role in the recent global economic collapse. Those practices included funding loans with falsified information, hidden costs and charges. They also packaged subprime loans as prime loans and resold them to international investors. The resulting negative ramifications have been felt globally as the investments proved to be not what they appeared to be ... for the investor and the borrower. That has resulted in an assortment of laws and/or guidelines, Federal and State, intended to protect the consumer and the investor the latest of which takes effect on July 30th.



The new Truth in Lending Regulation (Reg Z) changes take effect for loan applications filed on, or after July 30, 2009. The new requirements apply to all mortgages secured by a primary or second home. Investor loans are exempt. Two main changes are the requirement of the lender to give a good faith estimate of loan costs within 3 business days after the loan application (early disclosure), and the lender may not now collect any fees before the disclosure is provided, except for a reasonable credit report fee.



More Reg Z changes: a) The closing may not occur until after a 7 day waiting period following the consumer's receipt of the early disclosure., b) If the annual percentage rate (APR) increases by more than 0.125 percent from the early disclosure amount, the lender must provide a corrected disclosure and wait an additional 3 business days before closing the loan. It is important to understand that the APR not only includes the interest rate on the loan, but certain other settlement costs. c) The consumer may modify or waive both waiting periods for a documented personal financial emergency, with some restrictions. d.) There is also a requirement for first lien hiolders to escrow funds for taxes and insurance, but that will be phased in during 2010.



It is important to understand that the APR can be affected by something seemingly innocent, but with the potential for major consequences. These can include an unlocked interest rate, a change in the loan amount, a product change (the loan product), rate re-lock due to market improvement, change in closing date, and changes to fees including settlement fees. Each of these items can occur innocently enough during the course of a transaction and, if too close to the scheduled closing date, can wreck havoc with the closing timing.



The changes aren't really drastic, but they have the potential to delay closings. It is important that everyone - borrower, Realtor, and lender - all pay attention to the details from the onset of the loan process to the funding. Minor changes can cause several days of delays. Delays can result in missed closing dates which can mean not only not moving on the weekend that you have arranged for with your friends and work, but can also mean a breach of contract that could cause you to lose the property (and possibly your deposit), in certain circumstances. All parties must be diligent in their efforts and communication on the loan process to minimize aggravation.



Getting a new loan? Better plan on at least a 30 day period, and be diligent during the process. The longer the process goes the more opportunity there is for an issue. As changes occur during your transaction make sure of their consequence, if any, on your loan process.

It is more important than ever that you use a Realtor, loan officer, and settlement company that are informed and that you can trust.

Improve your Real Estate career in Virginia

Is your Woodbridge Broker working for you?
I constantly hear from agents that are unhappy with the support from their office manager. Yet, some are afraid to make a move that can spark their careers. If office chatter is about being afraid to ask a question because of the manager's attitude, this is ridiculous. Yet it is happening all around us. You are self employed. You can only count on yourself to make decisions that will benefit you. Your office should be a comfortable and nurturing environment. However many are creatures afraid of change...even when a change is best. Here is a small sample of what I hear:
Sales meetings are boring and stale
Our manager is demeaning
I spend all of my time doing administrative tasks
Their is no office administrator
The manager has favorites
The same people get all the leads
The equipment doesn't work
Everyone is out for themselves
Upper management won't listen
I am not important
Noone really cares if I am successful
There is no training
I get NO support

Sound familiar? I believe in something different! I have also worked in the environment I describe above. That is why I chose a company that matched my own ideals. That is why I manage in a different way.


This is a sample of marketing that we do for our agents. From sign up to sign down, we handle the marketing for our agents. As a matter of fact we even put the sign UP and take it DOWN. I want you out in front of people making new clients and sales.
My agents get semi-private office space. I hold weekly training sessions where agents are encouraged to try new things. Our weekly sales meetings are filled with breaking news and information about the ever changing market, government programs and mortgage news. I save any office admin updates for email, where you can read at your leisure. My sole purpose is to inspire you to motivate yourself and to give you the tools to think a different way. I want you to try something new, evaluate what works and drop what doesn't. Change your mold from time to time...just as the market does. I don't want JUST a large number of agents to please my boss. That is short term thinking. I want quality, thriving agents. I want an office environment that is helpful, friendly and the envy of the town. Anyone who knows me, believes that these are not unrealistic expectations. Most of those managers up the street are just waiting out their retirements.

I haven't even mentioned all of the great tools offered by Prudential itself! That is because I believe that it all begins with ATTITUDE. We all choose which side on the bed we get up on. The rest is a bonus.

You can choose to remain in a stale environment that is not condusive to a quality of life and is draining the life out of you. You can keep saying those items on the previous list. Or you can step out of the shadows and take control.
If you are in the Northern Virginia market, come and chat with me and/or my agents. Choose to enjoy and prosper. Reach me at 703-497-7788 or jim.evans@prudentialcarruthers.com
There has never been a more important time to do the right things for yourself!

Jim Evans
Managing Broker
Lake Ridge office