I was in my office some time back when a call came in. The caller was frantic! As the words tumbled out, I slowly began to decipher what was being said. The voice on the other end was panicked as they described a most bizarre situation. These were my dear clients. We had successfully helped them to purchase this lovely home several months prior. They had happily settled down in their new home...and now this!

The drama had started with a knock on the front door. When they opened the door, a grandfatherly looking man dressed in a nice suit introduced himself. He indicated that he had just seen a notification that their house had just been foreclosed. He was wondering if they aware of this? He indicated he had dropped by to let them know about some options for folks in their situation. Talk about jaw dropping surprise!

The story from this gentleman was eerie. For one thing, he knew that they had recently closed on the home and that there had been some liens on the home. In this particular situation, there had been a divorce which had left some loose ends hanging which had to be cleared prior to closing. As the buyers agent, we had ordered and checked the title-work to make sure that everything was clear prior to closing. However, there were enough significant details conveyed to me in the conversation with my distraught clients, that I too began to wonder if I had missed something.

Fortunately, he had left his card. I immediately alerted the listing agent and then initiated an urgent call into the title company. The title company verified that there were no outstanding liens at the time of closing. My next contact was to the county clerks office and they also had no indication of any foreclosure filing. You know who my final call was to...Mr. Santa Claus himself. You can rest assured that I was NOT to wish him a Merry Christmas!

Scams within the context of real estate transactions are increasingly common. Last year, the Grand Rapids Association of Realtors added a link on its website to allow anyone to report suspicions of mortgage fraud. It was a very necessary response to try to combat the increase in loan fraud. But the assault against customers has not been limited to just loan fraud. In the Grand Rapids area, we have had a number of reported cases in which individuals have been promised assistance with saving their homes from an imminent foreclosure, only to find out that they had been scammed hundreds or thousand of dollars and eventually lost their homes.

Yesterday, I received a call from a gentleman in another state who had found my blog post/series on short sales and foreclosures on line. He indicated that he wanted to know if I had heard about a certain company. Apparently, they had missed a payment or two and his wife in her acute distress, had contacted a company which promised that they would save their home from foreclosure. As long as they paid them $1,200 of which $600 was due that night! Whoa!

This gentleman had a nagging sense that something was not quite right. That gut level intuition is one of the most powerful sources of protection when dealing with a scam artist in real estate or any other area. Many scam artists are able to prey on people when they are most vulnerable because there is a tendency to grasp for any shred of hope in a desperate situation. It is most critical during these times to put the brakes on ALL hasty decisions.

The reality is this...It is not a Quick, Easy or Simple Process to Loose Your Home. AND...there are a number of options and solutions which you can explore in a reasonable manner so you can make an informed decision about what makes the most sense and is best for you.

Here are a few suggestions that might find helpful:

1. Avoid making hasty decisions when in a crisis. Recognize that your judgement might be impaired.

2. If something feels not quite right...Wait, Ask more questions, Verify

3. Report suspicious activities or proposals to the appropriate authorities

4. If someone offers to save you from a foreclosure and asks you for money to do it...DON'T instead..

5. Contact a Licensed Professional with knowledge about the process of foreclosures and short sales and requests a FREE Consultation to help you determine the best route for you to pursue.

And now to finish the story about Mr. Santa Claus. When I confronted him about his duplicity, he instantly retreated. He indicated that he must have made a mistake and got the wrong address. He was so sorry to have caused any distress & asked me to apologize to my clients. He had been given this list and was just trying to do his job. I told him that the only thing he was sorry about was that he had been caught and that he would be reported to the authorities. The line went dead...The only information on the card was a company name and an out of state telephone number.

Copyright 2008 Audu Real Estate All Rights Reserved

Most of us know Uncle Sam pretty well.  Some of us may be somewhat unfamiliar with with another significant relative in the American monetary landscape...Mr. Fair Isaac. So, here's a quick history lesson. 

Fair Isaac came into being in 1959 as the creation of two brilliant people:  Mr. Bill Fair who was an engineer and Mr. Earl Isaac, a mathematician.  Together they developed a system which was initially designed to help banks and retail stores to calculate how likely their customers were to pay their bills in a timely fashion.  

It was a brilliant concept.  Based on a closely guarded mathematical formula, a three digit number was assigned to an individual's history of interaction with credit to predict their future spending and payment patterns.  It was financial wizardry at its finest.  Until, the mid 1980's Fair Isaac scores were not used as the major criteria for lending in the housing market.  Mortgage Lenders documented their loans through analyzing a large volume of data about the individual borrower which included: pay stubs, bank balances, tax returns, retirement portfolios, asset portfolio and employment history.

But everything changed when Fair Issac became a public company and subsequently the darling of the banking system when it came to rating a borrowers ability to qualify for a mortgage loan.  According to the latest Business Week Special report of February 2008, in an article entitled "Credit Scores: Not-So-Magic-Numbers,"  1996 marked a huge turning point for American cconsumers when Fannie Mae and Freddie Mac, the largest wholesalers of mortgages  began requiring FICO scores on every loan they bought from lenders.  1996 was the year I became a full-fledged real estate agent.

Back then, we were all trying to figure out what this would mean for our clients.  Some Mortgage reps provided long lists of what could potentially impact a score.  There was some nervousness of how all this would play out in buyers being able to qualify for financing.  This was long before the days of the credit card doctors and the mortgage repair teams.  We were assured that this "magical" score was FAIR and would help alleviate mortgage discrimination.  All would be well.

No one could have imagined what would take place over the next decade and how much would change.  Who could have predicted that the real estate boom would spur such an incredible plethora of mortgage products? Who would have imagined mortgage bundles being sold worldwide in a manner similar to stocks?  The FICO score became the fuel that juiced the twin engines of progress and economic expansion. 

Today, FICO scores are used for more than most people would have ever dreamed about when they were first presented in the public arena.  Did you know that your insurance rate is often determined at least in part by your FICO score?  Your FICO score is also checked by many employers prior to an offer for a job.  Were you aware of the fact that some hospitals have started checking FICO scores prior to admitting patients?

According to this Business Week article, there are some major drawbacks with this expanded use.  Even as FICO scores are being used to determine more and more things about how our lives are lived...they are becoming less accurate.  It is a well know fact that FICO scores can be manipulated.  Entire industries have sprung up to raise the "number"  for consumers who need a higher score to facilitate a home purchase or other financial endeavor.  In addition, it is a widely know fact that the information which is used to create the score is not always complete or true. With fraud on the rise, consumers are encouraged to check their scores at least once a year to review what is in their credit file.

With this in mind...it is disconcerting to see that as the accuracy of the model has decreased, it's use to determine issues as critical as your livelihood or an admission to a hospital for critical care are on the rise.  I find it a little disconcerting to think that while a confrontation with Uncle Sam could cost consumers money...issues with his relative Mr. Fair Isaac might affect your right to receive life giving treatment.  Does that seem right to you?

Copyright 2008 Audu Real Estate  All Rights Reserved

NEW, EXPANDED BLOGGING SEMINAR!

Featured Speaker: Lola Audu, Associate Broker, Audu Real Estate

Featured Speaker: Sara Bonert, Industry Relations Specialist ~ Zillow.com

Seating Limited! Register Early! November 7, 2007

TIME: 9:00 a.m. - NOON

Pre-Registration: $35 At the Door: $40 *Payment in advance by check or credit card must be received to confirm registration.

Grand Rapids Association of Realtors Auditorium: 660 Kenmoor SE

Click Here to Read & Watch the First Blogging Seminar in April 2007!

This Seminar is Being Sponsored by the Following Companies:

Grand Rapids, Michigan is slated to join an exclusive club.  This month, Grand Rapids, Michigan will be the first city in the Midwest  and one of only 37 cities in the entire world to become home to a JW Marriott Luxury Hotel!

We've watched the structure rise up for a couple years.  Starting as a giant hole in the ground, the gleaming tower of the New JW Marriott has emerged as a shining reflection of the future envisioned for the city.  The Marriott flagship luxury brand hotel along the Grand River is scheduled to open in Grand Rapids, Michigan on the 19th of September, 2007. 

The impact of this hotel extends its reach far beyond the soaring towering 24 story edifice.  In fact, it is the culmination of a friendship between two of the city's best known citizens, Jay Van Andel and Richard M DeVos; a business partnership extraordinaire which created and energized the growth and dominance of the Amway/Alticor corporation.  Although Jay Van Andel did not live to see the final completion of this project, it was the last venture that he embarked on with his longtime childhood friend. 

My first experience with the Amway luxury 4 Star hotel, the first project coordinated by Rich DeVos and Jay Van Andel, was in the early 1990's.  My husband and I were given the gift of a dinner at the exquisite 1913 Room and also had the opportunity to stay at the flagship Amway Hotel in downtown Grand Rapids, Michigan.  Everything about the experience was first class and it has remained one of my favorite hotels.  So when the founders decided to build another hotel, the city of Grand Rapids, Michigan was excited to have this excellent opportunity.  The New JW Marriott will provide much needed hotel accommodations (300 rooms)  to support the convention business anticipated from the 250,000 square feet, world class DeVos Convention Center.

The hotel's decor, accessories and dining experiences will be flavored with the unique accents that make the West Michigan community a memorable place to visit.  Some of this delicious fare can be experienced in the six. one.six...the hotel's signature restaurant named with a creative play on the telephone area code for Grand Rapids. Award winning chef, John State who is a native of Michigan from St. Joseph will be plating up local delicacies with a twist.  His extensive career includes an epicurean tour of Europe and a decade long stint where he opened and managed the Flying Fish Cafe at Walt Disney World in Orlando Florida.

JW Marriott will be the most expensive piece of real estate per night in the Grand Rapids, Michigan area!   Single room rates will start at $229 and suites will be available for $339.  To dwell in the lap of luxury in the Founder's Suite on the 23rd floor, you'll have to fork out a cool $2,500 for the night!   

The location of the hotel provides proximity to a number of excellent downtown attractions and restaurants including the nearby Amway hotel with several first class dining spots and boutique stores.  As Grand Rapids kicks up it's heels to showcase it's new stylish self...the JW Marriott is well suited for a city that sees its reflection in the mirror of the future and is starting to feel like it's looking good...real good!

Copyright 2007 Audu Real Estate  All Rights Reserved

 Click Here to Read More about Grand Rapids, Michigan

photo courtesy of numstead on flickr.com

*Blog Correction/update: 9/7/07 - Jay Van Andel passed away on December 4, 2004.

It feels as though autumn is making an early arrival in Grand Rapids, MIchigan.  The days are unseasonably temperate for what we have come to expect at this time of the year.  August is usually a steamy, sweltering portion of the summer which chases you to the beach to bear your arms and thighs to the sun.  Altogether the entire summer has been downright pleasant.  But, the later portion of August has played out with calm drizzling rain which has turned parched lawns into verdent patches of green.  My umbrella and a light sweater have been standard accessories for the past several days.

I don't mind this flirtation between the seasons.  Summer deciding to merge with Autumn a little early.  It's fine with me because I love fall.  I love the changing of the color guard that transforms the trees into a glorious profusion of artistry so extraordinary that people drive for hours just to take in the show!  To enjoy West Michigan's best tours for the fall season, you may want to bookmark this site.  Although, conventional wisdom says the best color does not peak until October...nature may decide to welcome the harvest just a little earlier this year.

One of my favorite spots to stop in for a snack while driving around Grand Rapids, Michigan during the temperate fall season is Robinettes Apple Orchard.  (The website is undergoing some major reconstruction at this time, but you can bookmark to check it out later and to view their gift selections on-line)  Robinettes Apple Haus has been in business since 1911 and is family owned. Robinettes is famous for fresh donuts, delicious cider, tasty pies and of course...great apples!  I also love their freshly baked breads.

Fall is also a time for harvesting the contacts made in business throughout the spring and summer months.  It's  a great time to visit clients who have moved into new homes in time for the start of the new school year or to pick up the phone and make an appointment for lunch.  This is the time to dust off old contact lists and write a letter. 

Fall is a time of expectation.  Expect good things to happen.  Expect to see results as a reward for your labors.  And NEVER GIVE UP!  This past week, two calls brought in business deals from sources that were totally unexpected. 

One individual had decided to use another company inspite of having several recommendations to use Audu Real Estate.  Well, unexpectedly she called back, the deal had fallen through and she used us to buy her home!  We also received a referral from an individual who said she had been given our name from a sources that I have little present contact with.  If nature decides to enter the harvest a little early this fall...well, perhaps so can you.  Here's to prosperous Prospecting & Harvesting this Fall!

Copyright 2007 Audu Real Estate  All Rights Reserved

Click Here to Read More about Grand Rapids, Michigan