Saturday, October 3, 2009

What makes Chinese Drywall Toxic?

What makes Chinese drywall Toxic?
By JR Hafer
We’ve all heard of the imported Chinese drywall and its toxicity in emitting dangerous sulfur gases in some homes. But do you know the cause of it? Perhaps, you may be muttering to yourself, “who cares” right? The answer is; those who will encounter harmful health problems from the purchase of the dream house they have always wanted. Or perhaps, one who might have purchased a foreclosed property at a fantastic deal. There are many scenarios that may cause us concern over the toxic drywall situation.

The suspected culprit that makes the imported Chinese drywall toxic may be “fly ash”. I know now your asking, what the heck is “fly ash”?

I understand that fly ash is the derivative of burned sulfur coal at power plants that generate electricity. Fly ash accumulates in the bottom of furnaces and smoke stacks. The contents of the “coal ash” or fly ash is determined depending upon the type and source of coal.

The contents of the ash, depending upon the coal, may be arsenic, beryllium, cobalt, lead, manganese and mercury, along with many other compounds like dioxins.

In the past, fly ash was generally released into the atmosphere. However, government mandates now require the pollutants to be captured and discarded. About 43% is recycled and used as supplements in some building products like Portland cement and some bricks.

In some countries, the fly ash produced by the sulfur coal burning electricity generating plants is discarded in public landfills, along with, maybe, e-waste and who knows what else. Perhaps this occurs near the gypsum mines, where there is a seepage and contamination of the run-off into streams and soil. Of course this is just speculation on my part. But this much I do know: fly ash or coal ash containing sulfur contaminants is suspected to be used in the manufacture of Chinese drywall as well.

The health concerns may be a bleeding nose, upper respiratory problems, a skin rash, skin sores, headaches, eye problems, and scores of others afflictions.

If you have a rotten egg smell in your home, or your mirrors are getting darker, jewelry quickly tarnishing, copper products in appliances turning black with corrosion, then you may have the toxic drywall in your home.

Other indications are electrical surges, constant wiring and appliance problems, including your air conditioner, or perhaps when you reach to turn on the light the switch may be hot, or gives a tingling sensation to your fingers, which is an indication of wiring problems. These too can be telltale signs.
You may want to check the AC condenser and the copper coils in your refrigerator works. If they are black or very dark, you may want to contact someone about your concerns.

Heat and humidity are activators of the toxic sulfur gasses. There has been some suggestion that fires have been caused by toxic drywall due to the corrosive affect on electrical wiring. Also, there are concerns of some sort of radioactivity involved in this drywall.

The question is just who do you contact. Below are some suggestions:
1- Contact your builder. Tell him your concerns and what you suspect. Ask him to check out the problem as soon as he can schedule an inspection.
2- Contact your county code department. They can direct you to someone who can do an independent test on your drywall.
3- There are a few companies that are becoming experts on the toxic drywall, and can give you advise as well do the remediation of the problem.

Just like Don Babinsky said, “I’m a firm believer that everyone involved with this ugly issue has been victimized by an unfortunate set of circumstances, which is to say that nearly everyone involved had only the best of intentions originally”.
(Don is with DriRite Corporation. He is an authority on Chinese toxic drywall. His company does remediation of the toxic drywall).

Real estate professionals should know the symptoms and how to spot indications of toxic drywall so he / she can recommend action, including an inspection.

It is my belief that knowledge is important and the use of it is essential. However, the harvesting of knowledge without use of it is a waste of time. I hope this information has been worth your time and is helpful to you.
If you have any questions, concerns, comments or suggestions please feel free to contact me at:
JR@jrhafer.com.

Friday, October 2, 2009

Follow me

Hey Friends and readers
We Have moved
Since this blog format is so very difficult for you to make comments on, and become a follower I have asked my very proffecient web wizzard Jennifer to make me a easy one to figure out.
Please follow Real Estate Market Watch to: http://jrhafer.com/blog
There you will find it to be simple to comment and write about current postings.
Thanks for your understanding. See you there, I hope.

Wednesday, September 30, 2009

Chinese Drywall


Imported Drywall, A Toxic Situation
By, JR Hafer

Very few people outside of the drywall industry actually realize how huge the toxic drywall affair really is. For the most part, government studies are ongoing and the builders involved continue with a wait and see mindset.
The truth of the matter is; certainly, no one knows what to do about the problem of defective toxic imported drywall.The circling lawyers overhead can certainly smell the money when a potential lawsuit presents itself.
This toxic poisonous drywall situation will involve more than a few thousand people who now find they are having health problems with unpleasant living conditions in a mere 100,000 homes built with the contaminated noxious materials in southern Florida.
Homeowners should be aware of any signs of potential problems that may “run up red flags”, not only those who built new homes from 2004 to 2007, but also those who have added living area, remodeled, refurbished or made repairs and used any type of drywall between 2001 and 2009.
There are many tell tale signs that may indicate toxic drywall problems. Are your mirrors turning darker? Is your jewelry tarnished more than usual? Are you having electrical and air conditioning problems? Are your electric switches getting warmer than they should be? How about sparking of light fixtures? Is there a “rotten egg” aroma in the air or smoke alarms going off? Is the copper wiring in your house getting darker and darker and bath fixtures becoming more and more tarnished? These are but a few indications of potential problems.Additionally, serious health problems can be caused by the defective toxic drywall, such as reoccurring nosebleeds, asthma-like symptoms, lung damage, stroke, and neurological damage causing palsy.
The sulfur “rotten egg” smell and polycyclic aromatic hydrocarbons are also known to cause skin irritation and various lung problems. These are all things to be cautious of. No one has yet formulated a viable plan. However, I can tell you if you suspect that your house has defective drywall, you should get out of your home until you get your drywall tested. Just like breathing bleach and ammonia, it can damage your lungs permanently. Naturally occurring sulfur compounds are emitted when the heat and humidity levels rise in your house.There has been no deaths, as of yet, confirmed. But I suspect it will be a lot like the asbestos problem, it took a long time for health concerns to become evident. I predict the health risks will be ever increasing and the toxic drywall problem will remain with us for a very long time.Abandoned houses and foreclosed homes with toxic drywall will continue to be on the rise in the near future and most likely a good number of them will be remarketed, perhaps, increasing exposure to toxic drywall.
Recently, builders have considered replacing the toxic drywall in affected houses. However, the replacing of the drywall, electrical wiring, plumbing and fixtures isn’t enough. Builders are now discovering that the wood in the houses is certain to have absorbed the toxic gaseous materials, as well. There is also evidence of radioactive emissions from these materials. Where does it stop?
Builders and suppliers, along with government agencies, are going to find out along with the public, that this imported Chinese toxic drywall may be a greater more complicated deal than they ever expected. Remediation of the toxic drywall will be most difficult. Health problems and lawsuits are surely to follow.It will indeed be a problem of great proportion with multi-culpability attached to it.

Saturday, September 19, 2009

Smoke and MIrror Politics

Smoke and MIrror Politics
Anyone who knows me knows I am not an alarmist or a trouble maker, but they will also tell you that I am someone who will speak my mind too.

Perhaps this is not the way to do it, but I am going to stand up and shout about an issue which has been so obvious and nobody else sees it or will say anything about it. Am I the only one who sees this travisty happening?

I doubt it will it will make a difference, nobody reads this thing anyway, and I am off my meds too, that’s my excuse.
The health of the American economy is directly tied to the real estate market. The real estate market supported and propped up the economy for six years, even though indicators said the health of the economy was in a slump the real estate market was artificially inflated and on fire.
While the “Tail wagged the dog”, the last administration showed the world that the president of the United States can lie and lead America down the outhouse trail to dine, without questions or too much of a challenge.

Although I didn’t vote for him, I had hopes that the Obama group would bring a whole new persepective and realism within the capital beltway. The politicians in Washington all live in a bubble and have absolutely no idea what is happening in the real world.

Show me ONE honest poor politician, just one... and I'll show you a politician who I will believe to have the common man's interest at heart.

The US congress and the administration claim to be aware of this fact, and promise to do something. After all, isn't that what we elected them to do?

We are being fed a bunch of smoke and mirror deception. The United States Government, Wall Street and the major Banks are defrauding America. We are letting them lie to us for their self-serving professional political and greedy reasons.

One of the largest Banks who has been gobbling up other banks and financial institutions over America over the last few years, bit off more than they could chew when they bought out the largest mortgage lender who was under investigation for making so many fradulent and misrepresented subprime loans. Now the Giant “Gobbler” is taking money from Government “handouts” while lying about making mortgage loans.

The truth is this Bank is only making enough loans to say they are doing so. That is a joke. So, what’s going on? Are we going to continue to believe this smoke and mirrors? Yeah Probably…

Helloooooo, anybody out there? .............
Anybody else have anything to say about it? email me: jrhafer@yahoo.com

Wednesday, September 16, 2009

Keeping it Simple

Keeping it simple: Removed By request of writer

Monday, September 14, 2009

The Kiss Method

The Kiss Method
What ever happen to the 'good ole’ kiss method ‘keep it simple stupid’? From my perspective, if you keep things simple and straightforward and there is no room for misunderstanding.
Now, I may not be ‘the brightest candle in the arbor’, but I can tell you this, when folks start complicating things, they’re doing two things. First, they are trying to prove how smart they are. Secondly, they have a reason to create “loop holes”. Oops, did I just describe a politician?

No one asked me but in my opinion, for what it’s worth, when there are arguments over the interpretation of something, it is needlessly too complicated anyway, why wasn’t it written in simple everyday English in the first place, so everyone can understand it?
Perhaps, Shakespeare was right, maybe they should hang all the Lawyers. It sounds to me, the simpleton I am, it may be a tad self-serving, for those who write laws to be only ones who can understand the blame things. Remember the Latin phrase: “Caveat Emptor” (let the buyer beware), we might aught to think about that.
We have the “Fox guarding the Hen House” No wonder the country is in an uproar over health care reform, No one really understands it. When the Washington insiders talk about things they use the ‘code Jargon’ of the trade, and not the simple language of the ordinary citizen. But they really don't understand all of it either. Just watch them argue... That is why the grand leaders of our country can’t seem to agree on anything. Looks like to me, in Washington, their first priority is self-serving partisan politics. Should not their first priority be for the good of the country?
Maybe the subject is too complicated and they should explain it all to us, simply... There's no wonder we get so many different versions, perhaps, they don't understand it either.
My Daddy always told me, ‘opinions are like Belly buttons’, everybody has one”!
Am I the only one, who thinks we should go to the “Kiss Method” and keep it simple? After all it's a complicated world and it's madness to allow all these complex laws and bills to be so incomprehensible, don’t you think so?
Thank God we have Honest, politicians, with integrity and traditional values, who are our mentors... Oops, sorry Joe, (before you yell out, "He Lies")!
Hello… hello… is anyone listening?
(jrhafer.com 9/14/2009)

Positive Outlook

Positive Outlook
It is time to look forward to all things hoped for, goals set to achieve. If we remember and linger on the past, it may, or may not, be fondly encased in our psyche. Therefore, perhaps it is time to forge toward our future… If for nothing else, it gives us a stable and positive outlook.
What-cha-think?

Tuesday, September 8, 2009

God Bless America, Fly the Flag on 9-11

God Bless the USA
By JR Hafer
On Friday, September 11th, 2009, we will be memorializing a great tragedy, one that could have brought this great nation to its knees.

The blood of those who lost their lives that day cry to our hearts and plead to us; not to succumb to mediocrity and indifference regarding acts of violence against America. A plead for Americans to rise up stronger than before, with greater resolve, to protect and defend our great nation.

America is a beacon of freedom to the world. We are bound to the memory of those who lost their lives on 9-11- 2001… To protect America from those who hold adverse ideologies and dogmas and to stand and defend her from those who swear oaths against the very existence of America. Listen to that cry, listen and take heed, fellow Americans.

On Friday the eighth year of remembrance, we shall stand tall with broken hearts and tears in our eyes. We have the responsibility as Americans to fly “Old Glory” our national banner, as we listen to that agonizing cry while the buildings fall to the ground once again. Listen to the united cry from those who we remember: “The price of freedom that we have paid is now your responsibility to preserve”.

This day, American flags should be displayed on the doorstep of every home, apartment, office, and storefront on American soil. Let it be a symbol to every citizen of the world that we, do indeed, remember as a matter of pride and patriotism, the attacks against our right to achieve and exist.
Every American should see it as their duty to display an American flag on the anniversary of our country's worst tragedies. We should never let time heal our hearts. We also should not allow the attack on America at Pearl Harbor fade into the background of our minds. All should be collectively remembered on this day.

We do this to honor those who lost their lives, their families and friends who continue to remember with pride, those who today are fighting at home and abroad to preserve our cherished freedoms.In the days, weeks and months following 9/11, The Red, White and Blue of American flags mourned the incredible losses. We proudly stood shoulder-to-shoulder and rallied against terrorism. Let’s not let those flags disappear. Our patriotism pulled us together in those times. Let the memory of 9/11 galvanize us in united solidarity again and again for ever. Amen…

Our American flag is stained Red with the blood, White with the purity of sacred faith and the Blue steely resolve of us who have tasted freedom and cherish it so dearly. Indeed, freedom is stitched into the fabric of our nation and the pride of knowing Americans can triumph over terrorism. Good over evil is always honorable.
Remember how we all felt Tuesday morning September 11, 2001 when we lost many in the World Trade Center, the Pentagon and in the rolling meadows of Pennsylvania.

Join us and fly the American flag on this Friday September 11th.

God Bless the United States of America!

Friday, September 4, 2009

Imported Toxic Drywall

Imported Drywall, A Toxic Situation
By, JR Hafer
Very few people outside of the drywall industry actually realize how huge the toxic drywall affair really is. For the most part, government studies are ongoing and the builders involved continue with a wait and see mindset. The truth of the matter is; certainly, no one knows what to do about the problem of defective toxic imported drywall.

The circling lawyers overhead can certainly smell the money when a potential lawsuit presents itself. This toxic poisonous drywall situation will involve more than a few thousand people who now find they are having health problems with unpleasant living conditions in a mere 100,000 homes built with the contaminated noxious materials in southern Florida.

Homeowners should be aware of any signs of potential problems that may “run up red flags”, not only those who built new homes from 2004 to 2007, but also those who have added living area, remodeled, refurbished or made repairs and used any type of drywall between 2001 and 2009.

There are many tell tale signs that may indicate toxic drywall problems. Are your mirrors turning darker? Is your jewelry tarnished more than usual? Are you having electrical and air conditioning problems? Are your electric switches getting warmer than they should be? How about sparking of light fixtures? Is there a “rotten egg” aroma in the air or smoke alarms going off? Is the copper wiring in your house getting darker and darker and bath fixtures becoming more and more tarnished? These are but a few indications of potential problems.

Additionally, serious health problems can be caused by the defective toxic drywall, such as reoccurring nosebleeds, asthma-like symptoms, lung damage, stroke, and neurological damage causing palsy. The sulfur “rotten egg” smell and polycyclic aromatic hydrocarbons are also known to cause skin irritation and various lung problems. These are all things to be cautious of.

No one has yet formulated a viable plan. However, I can tell you if you suspect that your house has defective drywall, you should get out of your home until you get your drywall tested. Just like breathing bleach and ammonia, it can damage your lungs permanently. Naturally occurring sulfur compounds are emitted when the heat and humidity levels rise in your house.

There has been no deaths, as of yet, confirmed. But I suspect it will be a lot like the asbestos problem, it took a long time for health concerns to become evident. I predict the health risks will be ever increasing and the toxic drywall problem will remain with us for a very long time.
Abandoned houses and foreclosed homes with toxic drywall will continue to be on the rise in the near future and most likely a good number of them will be remarketed, perhaps, increasing exposure to toxic drywall.

Recently, builders have considered replacing the toxic drywall in affected houses. However, the replacing of the drywall, electrical wiring, plumbing and fixtures isn’t enough. Builders are now discovering that the wood in the houses is certain to have absorbed the toxic gaseous materials, as well. There is also evidence of radioactive emissions from these materials.

Where does it stop? Builders and suppliers, along with government agencies, are going to find out along with the public, that this imported Chinese toxic drywall may be a greater more complicated deal than they ever expected. Remediation of the toxic drywall will be most difficult. Health problems and lawsuits are surely to follow.
It will indeed be a problem of great proportion with multi-culpability attached to it.

Saturday, August 29, 2009

Bon appetit

Bacon Wrapped Water Chestnuts

Hey Y'all,
Think about this, My friends and readers...
Sometime in the grand scale of things, The great Creator allows a thought to creep into your mind, no matter how dense your mind may be, it somehow gets in there and rolls around pestering you... you just can't shake it out no matter what you do. It's sorta like a tune embedded in your mind and you catch yourself constantly humming the tune all day long. Some times you are haunted for days or even weeks, until you succumb to it and write it, or cook it, or play the music yourself. Then as quick as it appeared to you... "poof" ... it's gone, leaving only the memory, Good or Bad, then you file it to the experience file, to revisit it sometime later... or maybe never! That's not the point, who cares, right?

I am bad about getting these messages in the form of exotic recipes (not erotic, mind you). I have found some great recipes that way, but truthfully I have gaged on some of them too.

My best friend, who happens to be with the Kingston Trio, George Grove absolutely loves my flat bread concoction and he and his wife serves it often to guests when they visit.

Here is one that invaded my mind yesterday. It will persists there until I do it... A recipe ... Yep, just the mindset of a twisted hungry "Fatso" perhaps ... But 'ere 'tis mate!

Bacon wrapped water chestnuts with almond slices
Marinate the whole water chestnuts in Terriyaki sauce with Garlic and butter for 30 min.
Wrap Hickory smoked Bacon around the water chestnuts and include the thinly sliced Almonds. The bacon can be tightly wrapped and held together with a toothpick. Fry in double virgin (sounds better than just a single virgin), Olive oil. Fry to crisp or to your liking.
Serve with a salsa dip or dip into Terriyaki... (If you like cheese, then perhaps you might overlay some provolone after cooking while it is hot.

This sounds like a great appitiser don't you think? I shutter to think about the caloric factor though...

Hey Let me know what you think.

Tuesday, August 25, 2009

Imported toxic Chinese drywall mystery

Chinese Toxic Drywall Classes to Begin.
Everything you wanted to know about the imported Chinese toxic drywall will be taught in a class at Lakeland Association of Realtors, on September 23rd. Watch for more details.
There has been found in Florida and eighteen other states, health problems and toxic gasses being emitted by imported drywall manufactured in China, causing health problems.
What happens if you find the toxic drywall in your home?
How do you know if you actually have drywall that may be causing you illness?
How dangerous is toxic drywall gasses?
Who is responsible for fixing the toxic drywall problem in your home?
Can the toxic drywall problem be fixed?
Will the Chinese Toxic drywall problem render my home unlivable?
Is Toxic drywall Radioactive?
Here is your chance to get these questions answered and learn more about this toxic drywall problem...

Monday, August 24, 2009

MesotheliomaCancer Center


Central Florida Asbestos Prevention and

Green Tips for the Home

Located in the southeastern part of the United States, Orlando is a city in the state of Florida. Highly regarded for hosting world class theme parks, beautiful sandy beaches and a vast culture, what potential homebuyer would not want to call this city their home?

The journey to purchasing a home is an enjoyable time in one’s life. But it is one that will bring many additional responsibilities. Having the assistance of an honest Central Florida real estate agent can make all of the difference during this process.

Often appearing in roof shingles, popcorn ceilings, piping and insulation, asbestos became one of the most popular building applications of the 20th century. Generally utilized as a form of insulation for piping, roofing and flooring, its flame resistant and highly durable qualities made asbestos the ideal form of insulation for many industries.

One of the main things that can go unnoticed is taking simple precautions to avoid asbestos exposure. Homes built prior to 1980 may still harvest asbestos materials. This should not make you jump out of your chair because asbestos exposure is easily avoidable by taking simple precautions.

Asbestos

If you locate any suspected asbestos in the home, most experts suggest leaving it un-disturbed and un-touched until a home inspector can examine your property, take evaluations and determine the safest course of action. Sometimes the best action is no action at all. Disturbing asbestos in good condition may cause its fibers to be released into the air.
Long term exposure to damaged airborne asbestos fibers can lead to the development of a severe lung ailment known as mesothelioma. Asbestos-related illnesses may not appear until 20 to 50 years after exposure, which makes mesothelioma diagnosis even more difficult.
Healthy Tips & Green Alternatives
Removal of asbestos in public facilities, workplaces and homes should be performed by licensed abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated. They must wear protective equipment such as masks and gloves to avoid any exposure. The materials should be removed in as large pieces as possible and places in disposable bags.
If asbestos is removed, green forms of insulation should be used as replacements. These include the use implementation of recycled building materials such as lcynene foam, cotton fiber and cellulose. These alternatives not only allow for a healthy and safe home, but can bring down annual energy costs. For example, the use of cotton fiber foam has demonstrated to reduce energy costs by 25 % per year. As education and technology of green sustainable practices increase, the numbers will continue to rise.
Recently, congress passed the American Recovery and Reinvestment Act into law. Included in this act were extensions to the tax incentives placed for energy efficiency in 2005, as well as new credits for homeowners who remodel or build using eco-sustainable methods. Existing homes are eligible for a series of efficiency measures that pertain to the home shell (Insulation, Windows, Sealing) worth 30% of the installed cost (materials only, labor is not included in the credit basis).

Friday, August 21, 2009

Ask Questions about Toxic Drywall

Do you have questions about Chinese Drywall?
What do you know about Chinese drywall?
Do you as a Realtor® have a fiduciary responsibility to your clients to know and disclose it?
During the construction “boom” of 2004 through 2007, a shortage of building materials ensued due to catastrophic damages caused by nine hurricanes within those years, wall board or drywall among other building materials were imported from China.
Health problems began to surface and continue to be reported in addition to gases and the corrosive nature of the Chinese toxic drywall that was evidently manufactured using suspected elements and chemicals banned in the United States such as Fly Ash.
A “rotten egg” smell and corrosive sulfur-like gases are emitted when the temperature and humidity are high in houses built with defective drywall, causing alarm and uncomfortable conditions. Defective drywall was used in over 100,000 houses built between 2000 and 2009. Reports of mysterious illnesses and deteriorating conditions of fixtures and wiring have appeared in homes where toxic drywall was used.
This defective drywall not only corrodes plumbing, electrical wiring and fixtures, it could also cause fires in some instances, and may be radioactive. I will share detection methods and other important information with you, if you only ask.
I am in contact with drywall suppliers, builders, testing organizations, politicians, and governmental agencies, to gain co-operation for presentations of this problematic occurrence.
With the number of foreclosures and abandoned homes historically high, the toxic drywall problem has been down-played by the industry and continues to be studied by the government. No one, at this point, has provided any definitive answers or directions for those who encounter toxic drywall. Scammers are rampant and lawyers line up by the hundreds to litigate class action lawsuits.
Find out who to contact if you suspect a house has Chinese drywall in it. Know the health risks and the legal liability you have as a Realtor® when showing houses with Chinese Toxic Drywall.Ask me here, ask me now! Leave comments.

Wednesday, August 19, 2009

Toxic Drywall Danger

Toxic Drywall Classes Planned
August 19, 2009 Lakeland, Florida: JR Hafer a Florida Realtor® with Plantation Realty announced today that he is planning to conduct classes to educate Realtors®, Homeowners and potential buyers about Toxic Chinese drywall.
During the construction “boom” of 2004 through 2007, and a shortage of building materials as a result of catastrophic damages caused by nine hurricanes within those years, wall board or drywall among other material was imported from China.
Real health problems continue to be reported in addition to the corrosive nature of the Chinese toxic drywall that was evidently manufactured using elements and chemical compounds banned in the United States.
The “Rotten Egg” smell and corrosive sulfur like gases are emitted when the temperature and humidity is high causing alarm and unlivable conditions in houses over 100,000 houses build between 2000 and 2009 when reported mysterious illnesses as well as deteriorating conditions of fixtures and wiring appeared.
This defective drywall not only corrodes pipes, fixtures etc., but it could be causing fires, and might be radioactive. How do you detect it? What can you do about it? What’s going on? All this information and more will be revealed to the public by Hafer in his classes.
Hafer is in contact with drywall suppliers, builders, testing organization politicians, governmental agencies, who he hopes to gain their co-operation in presenting this problematic impending catastrophe looming over multiplied thousands.
With the number of foreclosures and abandoned homes historically high the toxic drywall problem has been down played by the industry and studied by the government, but there has been no direction provided. Scammers are rampant and lawyers by the hundreds are forming class action suits. But no answers have been provided until now.
Watch for announcements when and where these classes are will be held or Call 863-224-2242.

Monday, August 17, 2009

Media-Driven Market
By JR Hafer

Those who keep abreast of what’s happening in the world by getting their information from the news media are behind the times. The media brings us dramatic words while describing news. Words like “underwater” to describe the current negative equity situation of homeowners.

Everyone knows that “upside down” indicates that one owes more than something is worth. However, the media in their effort to be more dramatic use the word “underwater”, which indicates to us, that we may need flood insurance.

The media sometimes use data that’s three to six months old and report information as current. That type of reporting is disgusting and misleading at best, especially to those in the real estate industry who can inform you, in real time, what is currently happening. You may want to talk to a Realtor for current news on the real estate market.

Realtors know there is a time gap in reporting of the news regarding the health and condition of the real estate market. Realtors® are see the data, Realtors® feel it, they live it every day, they understand their marketing area. This world depends on the news media to give correct information. Therefore, it is a media-driven market.

News Flash! There is no flood in Polk county Florida… But there are over 50% of homeowners in a negative equity situation. Not underwater but “upside down”, in other words, they owe more than their homes are worth.

The average individual equity loss, over the last eighteen months, is 60k to 100k for Polk county residents. Their market values dropped almost 8% during the first quarter of 2009 due to short sales and bank-owned properties selling at “fire sale” prices.

Some news media outlets say: “The housing market is in a freefall and will not recover before the end of the year”. The truth is, the house hunters are trying to buy houses now, they are coming in droves, right now, but the banks have tightened their lending criteria so much folks are having a tough time getting loans unless their credit is almost flawless.

Foreclosures are historically high and unemployment is higher than most report. Much higher, even double digit levels; But when the displaced self-employed is included and counted in the reports. Another flaw of the reporting media.

The good news is: Buyers are searching for the great deals. Realtors® are seeing, in some cases, bidding situations occur due to multiple offers, which morph into bait and switch tactics and the banks are capitalizing on these situations which are increasing daily.

Between bank-owned properties, short sales and other desperate situations, appraisals will not support much, if any, increases until those types of sales clear off the books, or thin out substantially. Like everything else, the real estate market is cyclical and prices will rise again, this is inevitable.

The media reports there are encouraging signs on the horizon. But, Realtors® will tell you the signs have arrived and contracts are being written. Hopefully, the smoke and mirror politics and the government handout programs are almost over. The American public will soon realize; the government throwing money at problem isn’t the answer.

It’s time for the banks to step up to the plate and stop changing the rules. I challenge the media to ask Realtors what’s going on and report today’s statistics today.

The media have the power to make presidents, control markets and drive an industry. They depend on, politicians and Wall Street statistics, and bank data to report the news. Aren’t they the very ones who got us into this mess in the first place?
But then they would only be reporting the news rather than making it. Indeed, it is truly a media-driven market.

Saturday, August 8, 2009

Chinese Drywall

Chinese Drywall Misery
By JR Hafer
During the out of control housing boom of 2005 combined with the rebuilding of annihilated homes and other structures, after nine major hurricanes, the demand created a shortage of concrete, drywall and various building materials setting the stage for a perfect storm.

Have you noticed your jewelry excessively tarnished and your light and plumbing fixtures and door hinges corroding? Do you keep checking the garbage for rotten eggs? It could be your drywall. Yes, your drywall, it could also be making you sick and irritable.

Drywall is an interior building material that replaced plastered walls in the 50s and 60s. Drywall is gypsum material sandwiched and pressure pressed between two sheets of paper dried in a kiln at 1700 degrees Fahrenheit.

Laboratory tests have identified volatile chemicals in drywall mostly manufactured in China and imported into the United States during 2001 through 2007. The chemicals identified as carbon disulfide, carbonyl sulfide and hydrogen sulfide are emitting sulfurous gases. These emissions have the aroma of rotten eggs.

The chemical gases emitted worsen with higher temperature and humidity. As a result of these emitted gaseous fumes, homeowners have contracted respiratory infections, skin rashes, severe headaches, watering eyes, sinus problems and nostril lesions and bleeding.

The drywall identified as manufactured in China causes copper and silver surfaces to corrode, turn black and have a powdery residue that is indicative of a chemical reaction with hydrogen sulfide.

There have been reports that some imported drywall could be radioactive as well. This could very well be another nail in the coffin of our national economy and free wheeling lenders who have been collecting foreclosures like others collect antiques and artifacts.

The problem of American drywall shortage was exacerbated by the rebuilding demands of nine hurricanes that hit Florida in 2004 and 2005. Over 550 million pounds of Chinese manufactured drywall was imported affecting over 100,000 homes.

Not all drywall manufactured in China is tainted and not all tainted drywall is marked as manufactured in China either. Some toxic drywall bears U. S. Company’s names too. It is not known if those were re-branded here but also made in China or not.

Common sense would indicate that thousands of foreclosed houses that have been abandoned probably have Chinese drywall issues. If this is the case, then the toxic drywall issue could become another broadside hit to the lenders who have foreclosed on property and are trying to re-sell them on the market. The Department of Housing and Urban Development (HUD) is currently studying the problem.

Meanwhile, scam artists have already started preying on the fears of homeowners and potential buyers with bogus remedies including test kits, ozone generators and chemical cleaners. It is important to note: there is no home test kit, chemical sprays nor air filters that can test or rectify the atmospheric problems caused by Chinese manufactured drywall.

Be cautious of anyone offering testing or remediation services for toxic drywall issues. At this time there are no tests, short of tearing out sections for testing by government agency laboratories. Contact local authorities and building code offices for advise regarding toxic drywall.

The noxious odor combined with corroded wires and health issues are signs of possible toxic drywall materials present in your home. A warning has been issued by the U.S. Consumer Protection Safety Commission, stating it is not safe to wash the walls or steam clean your floors and carpets if you suspect your home has the unsafe drywall.

As of yet, there are no known deaths directly attributed to Chinese drywall and the long-term effects are unknown. However, there are factors to consider when investigating health problems that may be suspect and concurrent with moving into a newly constructed home during 2001 through 2008.

There are no easy remedies if you suspect that you have this toxic drywall problem in your house. If you are experiencing any physical ailments, including coughing, wheezing, excessive sneezing, eye irritation, sore throat, bloody nose dizziness, headaches and nausea which ease or cease upon leaving your home, you need to seek help. You should contact your physician right away.

Every homeowner of houses constructed within the specified time period and having the symptoms mentioned should be aware of other potential problems as well, such as power outages, hot electrical switches, flickering lights, and unusual sounds. Odors and mild tingles should also cause you concern.

If you have gas service in your home and you have these problems and gas odors, the possibilities of gas line corrosion is a serious concern. Contact your gas supplier immediately and vacate the premises. If you cannot contact the gas supplier’s office, call the fire department right away.

The toxic drywall problem is real and to this point has been downplayed but it is a dangerous brewing storm on the horizon one we shall all remember. We all should take note of this savage storm looming over us. The government doesn’t know what to do and right now there is nothing short of partial demolition, re-wiring and re-plumbing to cure the problem. It will affect us all in one way or the other, just wait and see. Do we smell another bail out down the road maybe? It smells like something is rotten doesn’t it?

Thursday, August 6, 2009

Making house payments, is it too late?

Should I continue to make House Payments?
Even though the process has started to foreclose on my home?
When you’re facing foreclosure should you continue to make house payments or not?
During this foreclosure tsunami many are asking that very question. The answer to that question is a difficult one, and depends upon your individual circumstances. The first thing I advise; is to seek the advice of an attorney. I am no lawyer and cannot give legal advice. But I can tell folks what I see happening in the real world and what I would do.
I would never tell anyone to stop making their house payments. I can, however, explain the way banks look at, and treat, pre-foreclosure situations. However, I must add, lenders are all different and all of them approach situations differently.
However, one common thread that all creditors want to achieve is the need for communication in order to resolve a matter that demands a solution. Everyone loses when the only resolution is repossession or foreclosure, except the attorneys.
I can never stress enough the importance of communication with your lender. Most folks generally expect a confrontation, therefore, they hide from collection calls and won’t communicate with their creditors. They erroneously think if they avoid the phone calls and disregard the collection letters, the situation will heal itself, but that is absolutely the opposite of what actually happens.
Paying or not paying has a lot of collateral effects and the debtor must know before making such an important decision is made. Often a creditor doesn’t know your situation, it is his job to find out what the problem might be and to rectify the situation if possible. It is essential for any debtor to talk directly to the firm that has the vested interest. They have the power and the authority to adjust, accept, or modify the payments, extra charges, penalties and fees.
The foreclosure process generally will not start unless you have missed at least three payments. By the time the foreclosure process does start, payments may be as many as five, six or even more months in arrears.
Lenders really want to work something out with you, just as bad as you want to save your home. You must know that the process of foreclosure costs a lender from forty to sixty thousand dollars to foreclose on a mortgage. This expense rises when the lender must defend their actions from a proactive homeowner. It cost time and money for the lender.
As a Realtor®, I can provide you other options, but my advice to any homeowner having difficulty making their house payments is to communicate with their lender first.
The lender has the incentive and the authority to work out a loan modification, or even forbearance of payments. You may want to discuss a short sale option with your lender and your Realtor® as well.
Although it has been said that you do not have to be in arrears with your payments prior to discussing and getting a loan modification, the practical reality is, the lender lacks much incentive to modify a loan when you are current with your payments.
Bank rules constantly change and the government intervention continues to cause the lenders to change their mode of operation. The only thing constant about bank rules and guidelines is they constantly change.
Apart from some voluntary government programs regarding government mortgages (Fannie Mae or Freddie Mac), no lender will absolutely not deal with a borrower. However, you must have a plan to be willing to negotiate and perhaps accept changes. Banks deal with all sorts of situations and they’re motivated to protect their financial interests. A typical borrower calling a lender may hear absolutes, but that is a bunch of smoke and mirrors. Lenders would rather negotiate an equitable solution than to incur additional unrecoverable cost.
Remember, nothing can happen if you don’t communicate. No solution, no remedy can be had if you do not communicate. The worst that can happen is nothing will change.
The following are things you must consider, before you decide to continue to make your mortgage payments or not.
The general rule of thumb to use is if you can pay your mortgage and maintain your current life style, you may consider keeping the loan current. But chances are you wouldn’t be asking if that were the case. But, if you need to choose between buying food, medications and other necessities of life or paying your mortgage, the decision is already clear to you and you are asking for confirmation: Your life necessities take precedent over all other things.
Your mortgage is in place to provide your family a place of shelter and security. Therefore, it should be a priority over everything else, other than food, medications and other necessities. Credit cards and other bills should be arranged into their priority before making the decision to continue to make house payments or not.
House payments or partial payments that are made after the foreclosure process has commenced will not be accepted by the lender anyway. Remember that other charges, penalties and fees are accruing exponentially during this period. In Florida and some other states, there is no right of redemption. This is to say that the homeowner has no right to buy his home out of foreclosure, once the process has started.
Here’s my advice to you: If you are in foreclosure or just a couple of payments behind, formulate a plan of action. Communicate with your lender. If you can’t work out a solution, then have a concrete plan “B” and make sure you don’t end up out on the street. Always have contingency plans and communicate with your lender. The right will answer present its self and provide you with valuable knowledge. Remember knowledge is power.

Wednesday, July 29, 2009

Great time to buy a house

Is it truly a great time to buy a Home?
BY JR Hafer

Certainly, it is truly a great time to buy real estate for a fist full of reasons. It is a buyer’s market. Supply far exceeds the demand at present. Mortgage Interest rates are at historical lows, market values have dropped, in some cases, as much as 31% from the higher values of 2004 and 2005. Banks are unloading foreclosed properties at bargain basement prices and those upside-down are selling at negotiated short sales.

Because the number of foreclosures on the market and short sales added to those who are motivated by anticipated economical hard times, a buyer on today’s market should be able to find the perfect home without much compromise at all.

Those potential buyers with higher credit scores who make offers to purchase through a knowledgeable Realtor® can find sellers willing to make concessions to help with the buyers closing costs.

The national economic and financial hard times are giving potential first time homebuyers incentives to go ahead and buy rather than waiting. For example the federal government has passed The American Recovery and Reinvestment Act of 2009 has authorized the IRS to provide an $8,000 tax credit to buyer’s who haven’t owned a primary residence in the last three years.

You can find unbelievable deals in great neighborhoods and who can say if the market has bottomed out or not. However, several of these factors I have mentioned will pass you by if you “dilly dally”. The tax credit goes away on December 1st, 2009. Mortgage interest rates have but only one way to go and that’s up. They will surly start rising further and faster as the market stabilizes and recovers.

The Tsunami of foreclosures and short sales has certainly changed the whole landscape of the real estate market here in central Florida and many other places in the nation. But the fact is; the probabilities of a home buyer getting another opportunity like this, is perhaps nonexistent.

Indeed people can purchase the house of their dreams at bargain basement prices in this environment. But do it wisely. Your Realtor will advise and guide you how to get pre-approved and navigate the process wisely in order to achieve an excellent purchase for your family’s comfort and security.

Although there are many pitfalls, your Realtor can advise you how to avoid them. Make sure you ask him / her about a home inspection, a home warranty to circumvent any surprises and disappointments.

Yes, it is truly a great time to buy a home. But make sure you do it the right way. Get the right financing, and the right Realtor. Someone who can make your real estate experience a real easy one. Enjoy the process and enjoy your new home.

Friday, July 24, 2009

What is a short sale?

What is a “Short Sale”?
By JR Hafer
Perhaps you have a question you’re curious to ask: What is a short sale? Simply stated, a so-called “Short Sale” is: When the owner of a house (or any real property) owes more on the mortgage than what it is worth.
Since there are more foreclosures on the market and the list continues to grow exponentially, lenders will agree to accept a lesser amount as a total payoff, in most cases.
The cost to a lender to foreclose on a house can amount to as much as $40,000 to $50,000 after it is all said and done. These lenders realize it would be better to accept a lesser amount, rather than to pursue the expensive foreclosure process. They know there isn’t much chance to recoup the cost of foreclosure anyway. The additional cost to the lender, after foreclosure, is enormous. For example; the cost of insurance, taxes, homeowner’s fees, repairs and most likely vandalism make the opportunity of short sales an attractive alternative to foreclosure. The short sale has become a necessary evil for the lenders. It has also become a great opportunity for potential buyers to purchase a house at a deep discount.
The downside to the short sale is the time it takes to get the short sale process completed. It can take up to three months or more just to get an answer regarding your offer to purchase.
When the lender receives your offer a series of negotiations start which may produce a counter-offer rather than the acceptance of your original offer. Negotiations between your Realtor® and the lender can last a relatively long time depending on financing considerations, your financing, your pre-approval and other conditions and concessions you may have asked for.
Make sure you understand that short sales have no determined time limit and your lender’s interest rates may change substantially before you get an acceptable figure nailed down. Only after a solid dollar amount has been agreed upon can your lender start the underwriting process. Therefore, you should consider that additional time in your closing time projection.
Remember, when you enter into a “Short Sale” purchase attempt, the listing price may not be sufficient to pay the total of all liens and the cost of sale. The sale of the property at full listing price will require the approval of a third party (the lender). However, although the contract is between you and the seller, the bank must agree to accept a certain percentage of the amount owed. Also remember, the listing price may be an approximation of the amount that the lender may or may not settle for. Therefore, a “low-ball” offer is probably not realistic and could possibly even become counter-productive toward your effort to purchase the house in a short sale.
A short sale may be beneficial for you to consider. However, if your purchase schedule is limited and your time constraints will not allow for the time it takes to get an offer accepted, in some ways, you may find your efforts to be a waste of time for you and your Realtor®. So follow his advice.

Short Sale options Taint Realtors

Short Sale Options May Taint Realtors®
By JR Hafer
Over the years real estate agents have often been compared to used car salesmen. The comparison has naturally been resented, and on occasion given Realtorsâ reason to fiercely protect their professional reputations.
One of these occasions is happening within today’s trend of “short sales”.

Admittedly, the potential homebuyers can get a fantastic deal on houses tendered as short sales, if the transactions are straight short sales, that is. Offers that are actually negotiated directly by the realtor with the mortgage holder, for a discounted rate.

Where the process gets contaminated and starts to stink is when an investor steps in with an option contract. Although it is not yet illegal for these investor “flippers” to get involved and make large profits on the deal, it sure does give a perception of a “shady deal”… which, in turn, seemingly taints the reputation of Realtor®.

When a homeowner gives an option and a power of attorney to an investor authorizing the investor to negotiate with the mortgage holder in order to settle for a low payoff, the investor offers the same house to the public for a higher price. This cuts out the homeowner and seems somewhat shady. The desperate homeowner gives up his equity in order to get free of the encumbrance and allows someone else to profit on his hard luck, thinking it is his only hope. The investor can walk away from the deal without penalty if it doesn’t close leaving the homeowner holding a bag of hopes in sinking sand. This just doesn’t feel right.

When a buyer agrees to purchase the house, the investor closes at the lower price with the mortgage holder, and at the same time sells to the new purchaser, at the higher figure, thus making a profit without actually holding the title for any time at all. This is called a double closing; from A to B to C type of closing.

In the best-case scenario these double closing transaction are difficult. Only 10% of these option deals ever close without complications. These complications give the new purchaser the perception of Realtors® having questionable ethics and lacking competency. The perception of the Realtors® ability to close the deal is naturally in question when the transaction sours and goes bad regardless of fault… That stinks!

Several years ago the Federal Housing Administration (FHA) made a ruling that investors must actually own a property for 90 days before they could sell it. This is called “seasoning the deed”. This was directly due to some unscrupulous investors buying up distress properties at a very low rate and without much improvement, turning right around selling it at a big profit.

There is sometimes a very vague line between good old capitalism and opportunistic profiteers taking advantage of unknowing consumers who depend upon professional Realtors® to advise and guide them.

The option contracts and double closings cannot be done with FHA financing. The Federal Housing Administration has deemed it unacceptable for a reason. That reason is assumed to be due to the perception and appearance of impropriety.

Realtors® must contend with short sales due to the amount of impending foreclosures. This can be a helpful thing for those who face foreclosure. However, with due diligence we can ascertain the ones that have the aroma of road kill and option contracts and give these shady deals a wide berth so we don’t get the stench on us that will taint our professional reputation.

Realtors® have the responsibility to serve the public and to remain above reproach and fiercely protect themselves from those who would skirt legality and gray areas in the name of greed, under the guise of helping the “poor unfortunate homeowner” who is on the cusp of losing their home.

All Realtors® have a fiduciary responsibility to fully disclose all the factors of a short sale. This includes the option investor and the probable problems contained within these transactions.

Short Sales, by nature, are difficult without other mitigating factors. It is not a breach of the “steering” rule in making it clear to potential buyers why these types of transactions seldom work and some are a waste of time and effort in pursuing these deals.
According to Webster’s New World Dictionary, the definition of taint is: 1- spoil, rot; 2- make morally corrupt, contamination.