You have probably all been touched by it. People you never thought would lose their homes to foreclosure are finding themselves in that horrible, horrible position. My own brother is one of them, so I know it’s widespread, and don’t think for a minute we’re through it yet.

I don’t care that the Federal Govt. has extended the $8,000 tax credit for first time home buyers and is now even offering up to $6,500 for repeat buyers -after all that’s what they do best -GIVE AWAY MONEY WE DON’T HAVE!

If you you look yourself in the mirror and tell the truth, these tax credits are quite possibly putting more under-qualified buyers in homes they very likely will get in trouble with later. And worse, these artificial blips in the housing numbers due to govt giveaways just prolong the agony of the recession. Look at Cash for Clunkers. Car sales fell flat the minute that giveaway ended.

But I digress. My Hikers Beware has to do with people walking away from their homes with foreclosure looming only to learn that the bank never followed through on the foreclosure action and they are still on title as the legal owner.

In otherwords they’re on the hook legally if it turns into a crack house or someone gets hurt on the property. If it’s in a subdivision or association, they’re still liable for maintenance fees and/or association dues. And they can’t qualify for other housing (senior subsidized rental housing, for example) while still an owner of the property they walked away from, and on and on.

I wish I knew how to advise you to get your name offthe title if you’ve found yourself in the unfortunate walkaway situation, but just be advised the problem exists and try your best to get your mortgage servicer to follow through on the foreclosure getting you off title!

That’s my Tip of the Day!

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
my ‘Grassroots’ blog: GetOffYourButts.net

Imagine the cheek to actually count on those funds to balance the budget! It’s nice to consider other options before raising property taxes or giving up some of the unfilled but conveniently funded county positions (so the money stays in the budget creating a nice little slush fund for the mayor), or God forbid, going to layoffs or furloughs -gasp, gasp!

The headline on the front page of today’s West Hawaii Today, “Sell, sell, sell” is captioned with ‘HAMAKUA LAND SALE DECISION PREDESTINED BY COUNTY OFFICIALS’.

Now I understand after attending the Talk Story session at Waikoloa Village Association the other evening (our own version of Town Hall meetings sponsored by our popular Association Manager, Jim Whillock) and it’s becoming more clear all the time. Councilman Pete Hoffmann in attendance, opined that they (the East side block) might already have a buyer in the wings. Let’s see, a buyer positioned to acquire prime agricultural lands at historic low prices due to the current economy and ailing real estate market. Who could that be?

I’ll give you a hint as to who it may be -Monsanto. We’re talking over 3,500 acres for around $8 Million (less than $2300/acre). In case this doesn’t ring a bell, Monsanto is a multinational bio-tech corporation in the business among other things of producing and promoting genetically engineered seeds. GE Seeds as they are known, boast better yields, more uniform and disease-resistant crops and supposedly help the starving world and provide a boon to small farmers.

However independent studies have shown links to GE crops and organ damage, increased use of petroleum based pesticides and eventual guaranteed contamination of neighboring farms and crops. And according to OpEdNews.Com,

“the real problem with them (GE-Seeds) are the patents they come with. The bio-tech companies are monopolizing seeds themselves, actually privatizing the DNA of life. They sell the GE-seeds at many times the price of normal seeds.”

Not only do they sell the seeds at much higher prices, they engineer the seeds to be sterile after one generation so after wind born contamination, neighboring farmers can no longer produce their own seeds. They have to buy from Monsanto. Monsanto and other bio-tech corporations have bought up all the normal seed companies tightening the screws for farmers.

Does this sound like a good direction to go here on the Big Island? I don’t think so. It sounds like another nail in the coffin for diversified agriculture and devastating long term effects in exchange for a quick buck now to balance the county budget. Call the County Council members now and tell them you don’t want this land sale to Monsanto or any other GE-Seed company.

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com
my other blog: GetOffYourButts.net

They claim to be combining a bit of refined Rocky Mountain cuisine with fresh island specialty foods and they boast “The beverage roster is first-rate and all fruit juices are fresh squeezed to order for cocktails.”But as I say, Auwe, because they’re also proud to present their lamb from Colorado, cured meats from Arkansas and Kobe beef flown in every week from Japan! How’s that for island flair? And not too green either. Not that I am particularly taken by the global warming thing and I hate to be pc, but just economically, what happened to fresh and local? 

I mean what, we don’t have good beef right here on island? I think so. Okay, what about Kahua lamb? And they better be getting their veggies locally because Kamuela right up the hill has a ton – make that tonnes (if you must be continental) of the best and freshest organic vegetables you could find anywhere.

I don’t know about you, I just think they could do a better job of supporting our local farmers and put out fare that’s just as good if not better with the surfeit of local fresh ingredients available right here on the Big Island.

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com
my other blog: GetOffYourButts.net

Too many things (change we better pay attention to) are being rammed down our throats. We’re all busy. Let’s face it with trying to pay the bills, feed the kids and keep our nostrils above the waterline and with so much coming down the pike, people feel powerless.

My contribution is make you more aware of these issues. I’ll provide links, videos and other ways you can quickly jump in and participate in what’s going on and give you a chance to voice your concerns. ** pay attention to underlined, highlighted or bolded words – these are action items **

As an example of things I will cover, did ya know CONGRESS HAS MADE THEMSELVES EXEMPT FROM ALL VERSIONS of the Health Care Reform currently before that body? Sort of begs the question – If it’s not good enough for Congress (and their federal employees and their families) why is it so great for the rest of us? THAT’S JUST WRONG!  But here’s what you can do. Congressman John Fleming of Louisiana has proposed a bill, hr-615.pdf that gives members of Congress a chance to put their money where their mouths are if they vote for the bill, by agreeing to enroll themselves in the same plan they are pushing down our throats. Go the the link here to let your representatives know how you feel and see who has signed on to it so far.

That’s it for now!

Respectfully yours,
Mikie

Now Get Off Your Butts!
Bookmark this blog, use it to make your voice be heard & share it.

“Yeah, no more taking advantage of people! “

I’ve blogged about this before in “Clamp Down on Mortgage Lenders?” back in 2007 when the subprime meltdown was just starting. But obviously I need to say it again.

We are in the process of refinancing our mortgage through Bank of America (a Big recipient of TARP funds after agreeing under pressure from then Treasury Secretary Paulson to buy Merrill Lynch), so as soon as we got credit approval and all our paperwork passed muster we receive a HUGE package. I’m talking $8.70 in postage huge!

The bundle included a 75-page book called Application Disclosure Handbook, a copy of our appraisal (this part is totally good-everyone who pays $665 for an appraisal should get a copy of it!), and all the documents that relate to our application, 27 more pages. So I say to myself,  this is probably good, everything you need to know all right here for sometime when I have about 3 hours dead time or a bad case of insomnia! But as soon as I start reading it I am bombarded with blatant mistakes right from the first page!

First of all, the address is wrong. Despite having corrected it on the application from the very beginning we can’t seem to get that across to anyone. The interest rate does not match what we have locked our loan at, but what’s a half a percentage point among friends? Next, we have applied for a 5-year interest only loan, but the paperwork says the term is 30 years. Later I find out this is because it becomes an adjustable rate ARM after 5 years. Oh yes, and the loan amount is wrong. They include 3 TILs (Truth in Lending) Disclosure Statements -3 copies of the same thing, all wrong. And an amortization schedule which is incorrect, and on and on.

I could just scream!!!! 

WE JUST NEED THE BASICS. I mean who is going to read over 100 pages from their lender and understand it – especially when there are blaring mistakes from the get-go? Nobody that’s who. Mission accomplished I guess. They don’t really want to make it understandable, they just want to say they are making it understandable, you know so they can say they did something.

So I said it before and I’ll say it again. KISS, keep it simple stupid. This is all we really need to know.

1. What is my loan amount?
2. What is my interest rate?
3. When do I have to pay it off or refinance?
4. How much do I pay every month?
5. When will the interest rate adjust?
6. Is there a pre-payment penalty and if so, how much will it cost me?

Just the facts mam. ALL ON 1 PAGE, IN BOLD PRINT about 16 point font.

That’s my Tip of the Day!

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
websites:
GetOffYourButts.net
MikeSells.com

Bank of Hawaii in partnership with Hawaii Island Community Development Corp., (HICDC) based in Hilo, have started construction on the new Ainakea Senior Residences in Kohala. And believe it or not, these homes will be affordable to those who need them.

Almost always in the past, affordable housing was anything but affordable. Most developers with the friendly assistance of government . . . ;o) . . . naturally seem to bungle the concept so badly the projects cannot be completed or worse, if they are nobody can afford them. The Waikoloa Workforce Housing project comes readily to mind.

That project was doomed before they ever came close to completing it. And why, you might ask?  Affordable? NOT! Well because they couldn’t break the mold of trying to build market homes, just calling them affordable, and expecting the targeted buyers to be there with the money. Most of the intended buyers, having to meet certain income and other criteria cannot even qualify. Let’s face it, the standard 3/2 home with a garage on a decent sized lot can only result in homes priced way above anyones “affordable” definition. Land costs are so high that alone can push the project into the upside down category.

But the Ainakea Senior Residences will be composed of 30 one-bedroom, one bathroom apartments and they will be available on a monthly rental basis (yes, it’s true -not everyone has to own a home) with residents having to meet income criteria. HICDC executive director Keith Kato said with similar projects in the past especially in conjunction with rental assistance,

“Most of the tenants have paid less than $200 per month out of pocket and everyone has been very, very happy with their apartments.”

Now that’s good news!

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com

According to the Bulletin, the official newsletter for the Hawaii Real Estate Commission, of the 21,984 licensees (brokers, brokerages, individual brokers, salespeople and branch offices), only 17,325 renewed their license this last go round.

The breakdown of those who decided to throw in the towel looks like this:

• 3,976  Salespeople
• 645     Brokers
• 38       Branch offices

The upside is those that remain may be more dedicated to the task. A number of part-timers were undoubtly weeded out, and so when the market does come back there will be fewer licensed agents to divide the spoils.

The downside is a significant loss in revenue to the State in the way of license fees (at around $180 a pop = a lot of doe-ray-me!), not to mention fewer people taking those oh so interesting continuing education classes (10 classroom hours every 2 years costing between $35-$55 each). But it’s a cyclical thing and it is what it is!

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com

One logical question though, is how much real value has my property lost? Somehow I got a hunch it may be more than the 10.8% decrease reflected in the lower assessment. But since I can’t do anything about the market, I’ll take the lower taxes.

If you are curious, here’s how the property taxes are calculated.

Net Taxable Value x Tax Rate / $1000 = Taxes Due

Of course, there’s a lot more that goes into understanding the property tax levied on a particular property so I have included a copy of the Real Property Tax General Information here. 2008-2009-real-prop-tax-rates-info.pdf

The basics to understand is that if you are a homeowner (defined as owning the home and occupying it more than 200 calendar days/year), your’re eligible for the lowest tax rate available (unless of course, you’re a Charlie Rangle, Tim Geithner or one of the special people). It doesn’t happen automatically though, you must notify the county of your declared owner occupancy status on or before December 31st or June 30th of the year it becomes your principal residence, or you’ll automatically pay the higher (”Investor” rate) non-owner occupant rate until you do notify them. That could be an expensive mistake if you miss the deadline as the higher rate is currently $8.10/$1000 of assessed value vs the Homeowner rate of $5.55/$1000 of assessed value.

Some other items taken into consideration to arrive at your particular ‘net taxable value’ are:  age, whether or not you have certain disabilities (sight or hearing impairment or Hansens’s Disease, for example) or if you are a totally disabled veteran. At any rate, nobody likes to throw money away (considering they spend it so wisely . . .  ;o) so it definitely pays to check it out. If you have any questions, call (808) 961-8282, the County of Hawaii’s Real Property Tax office.

That’s my Tip of the Day!

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com

Mauna Kea, that is. According to a recent news article in West Hawaii Today (as in yesterday’s), Yale University plans to pay $12 Million for observatory time on KECK’s telescopes atop the tallest mountain on earth.

That’s right Everest (29,035 ft), is often called the world’s tallest mountain but Mauna Kea (33,465 ft measured from its base), on the Big Island is actually taller by almost three quarters of a mile! Nearly 20,000 ft of Mauna Kea’s height sits below sea level. But why the hefty price tag, you might ask?

Well, you may not realize it but observing time is meted out very sparingly. Various Time Allocation Committees (TACs) review proposals semi-annually and time is awarded based on the scientific merit of each proposal. After all, there are numerous scientists, entities and organizations worldwide that would love the opportunity to view the heavens in arguably the clearest, cleanest sky anywhere in the world, but with only 365 nights a year, it’s competitive. And what if your night turns out to be cloud covered? Well, don’t quote me, but I think it’s tough luck baby. That’s the way the cookie crumbles.

Yale’s deal though is for 15 nights of observing over 10 years so while a cloudy night would be costly to the bottom line, they’d still get another shot at it and it’s a chance they’ll take just for the opportunity. Access to our mountain they feel, gives them a leg up on other top astronomy programs and Mauna Kea won out over the 3.5-meter WIYN telescope on Kitt Peak in Arizona where Yale used to do their celestial explorations. Their loss, our gain!

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com

Oh yes, AND THE WINNER IS . . . . TRES HOMBRES, dba:  SPIKES. Apparently they have some new partners, and a new chef and are closing down their Kawaihae restaurant after many, many years and moving mauka! Don’t despair, they’ll be serving Mexican and American food so there should be plenny-kine variety.

I actually served on the restaurant committee, though our first choice, (Cronies) after interviews and the normal screening process ultimately backed out fearing a new venture in these economic times (okay maybe they also feared a heavy-handed board breathing down their neck a teensie-weensie bit too). Anyway, stay tuned here for a review of SPIKES after they’ve opened and worked out a few kinks.

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943
eMail: Mike@MikeSells.com
website: MikeSells.com