Who would have thought that this area would be hit by several feet of snow?  Well, we have been.  So let’s go over some snow safety for you and your home. 

1.  When shoveling, be sure to wear loose clothes and take breaks.  Don’t wait until the snow is done falling to start shoveling.  The snow is easier to remove if you shovel it every couple of inches that fall.  There is nothing worse than taking a trip to the hospital with chest pains in this weather.  Well, maybe a few things worse, but let’s not think about those.

2.  Be sure to clear snow away from hose bibs, dryer vents, and air condensers.  You will also want to clear the snow away from gas meters and fire hydrants.  If you haven’t unhooked your garden hoses and flushed the water from the pipes, go ahead and do it before the next storm hits. 

3.  Keep walkways and sidewalks clear.  Remember to sprinkle snow salt or kitty litter on slick spots.  There are more pedestrians during this sort of weather and it is safer for them to walk on cleared sidewalks than in the street.  The postal service will also not deliver to your house if they can not easily access your mailbox. 

4.  Make sure that your house numbers are visible from the road.  In case of an emergency you want to make it as easy as possible for emergency personnel to find your home. 

5.  If you must drive in this weather, clean off the top of your car.  It is extremely dangerous to drive around with 20 pounds of snow precariously balancing on your SUV.  If that snow flies off you could blind another driver with your snow.  So, take the extra few minutes and clean off your entire car!

6.  Make sure your animals have plenty of food and water.  During cold weather animals tend to eat and drink a little more than normal.  Give them access to food, water, and warm lodging. 

7.  If you are using gas powered products make sure that you have functioning carbon monoxide detectors.  Also be sure that you have plenty of extra batteries on hand. 

8.  Never leave a lit candle unattended.  Accidental fires are a major problem during weather like this.  If you leave a room, blow out your candles. 

If you have any other safety tips you would like to share please feel free to leave them in the comments section!

So, we’ve gone over what properties qualify in the proposed guidelines, how the bank will qualify a seller to be in the program, and the rules and regulations the banks will have to follow if they choose to be in the program.  Now, I’m gonna get down to the problems with this document and its implementation in the real world.  (You know, the place where we can’t pay our mortgages with kittens and rainbows).

1.  This program assumes that the banks are capable of meeting these timelines with the amount of faulty loans on their books.  That, my friends, is just crazy talk.  Some of the little banks may be able to meet the expectations outlined in this document, but the big boys will never be able to hold up their end of the bargain.  First, these banks are horribly under staffed in their loss mitigation departments.  Why?  Well, who wants to work in a loss mitigation department?  You get yelled at all day and get the joy of working with emotional train wrecks.  Employee turn-over is extremely high in these departments.  So, the banks will have to hire more employees to handle the amount of short sales that will be requested and processed.  Where are the banks going to get the money to not only pay these new employees, but train them adequately to do the job effectively?  Oh, that’s right, bail out money… cause we know the CEOs will not be foregoing their bonuses to make the banks work more smoothly.  Another problem in the this arena is that the banks are being asked to hire more people to facilitate this program and the bank’s benefit is $1000 a transaction.  Ummmm… $1000 a transaction does not offset the cost of an employee.  It seems that from this perspective the banks have very little incentive to participate. 

2.  Yes, I said participate.  This is an OPTIONAL program.  Banks had until the end of December to alert the Treasury Department that they would be participating.  I’m surprised we all didn’t get trampled in the mad rush to sign up.  (sarcasm)  Many of the larger banks are working on streamlining their own short sale process that is advantageous to their bank.  Why on earth would they participate in a program that limited their ability to recuperate funds?  Now, I’m not a business major, but I don’t think banks are in business to lose money.  And at this point in history, they are trying to mitigate their losses.  The $1000 participation bonus just isn’t enough incentive to take bigger losses by not being able to go after the defaulting borrower civilly.  The guidelines state the the lien holders must fully release the borrower from future liability for the debt.  At some point consumers need to held responsible for taking out risky loans.  Houses are one of the few products that people purchase and expect to be able to sell it at a profit.  When we buy a car, we expect to sell it at a loss.  When we buy a tv, we expect to sell it at a loss.  Investments are risky and there are no guarantees.  Again, it just doesn’t make sense.

3.  The banks are all expected to have the same standard process, the same documentation, and the same timeframes.  We might as well all take jobs herding cats.  Banks don’t even understand their own paperwork, much less buearocratic paperwork.  And, what happens to all of the short sales that are currently in the system?  Do we have to start all over? 

4.  One of my favorite guidelines is that REALTORS(R) will be expected to pay the cost of any contractors the banks hire to help facilitate the process.  Well, thank you Treasury Department for telling the banks that they can no longer cut reasonable commissions, but allowing them to charge me to do THEIR job.  Loss mitigation departments are already under staffed so we can safely assume that banks will need to hire contractors to facilitate these deals.  And, Yay!  I get to pay for that.  Well, I’m here to tell you, I WON’T pay for a bank to hire someone else to do the job they should be doing.  I didn’t give out the bad loan, I didn’t default on the mortgage, and I’m not responsible for the economy tanking. 

5.  The guidelines also state that transferring all of the documents through electronic means could be a problem.  They haven’t quite worked this detail out, but I’m sure they will before the program really takes effect in April.  (sarcasm)

6.  One of the biggest problems I have is that banks will be establishing the minimum net they are willing to take on the property BEFORE the property is under contract.  This can cause huge problems.  I recently had a short sale where the bank insisted on a net.  The purchase price had to be $410,000 to meet that net.  The house appraised at $400,000.  The bank demanded the purchaser pay more for the house than what it was worth by bringing $10,000 in cash to the table to make up for the difference.  Isn’t this type of behavior what got us into this mess?  The market bears what the market bears.  I don’t see banks brushing up on market data and conditions for every area that they have loaned in.  They are doing short sales to mitigate loss.  That’s what they will do, regardless of how it effects the consumer. 

7.  One of the funnier guidelines in the document is that properties that can qualify for the HAFA program should have also applied for the HAMP program.  The HAMP program is the loan modification program.  What a successful program.  (sarcasm)  How many loans have been successfully remodified?  How many homes have been saved from loan remodification?  Maybe a handful.  Loan remodification only allows to the banks to adjust their numbers and the borrower to postpone a short sale or foreclosure.  It is not the end all, be all answer to our problems.  It is band-aid. 

These are the points that I see wrong with this document.  I know that NAR and many designation and certifications for REALTORS(R) are touting this document as the glue that will bring the real estate market back together, but I can’t agree with them.  I think this document gives false hope to consumers and REALTORS(R).  I think it is pretty poorly thought out by individuals who aren’t dealing with the consumer side of short sales.  I think the document means well, but all in all, it’s a waste of paper.  I wanted to explain the document so that everyone would start thinking about what changes, if any, this will bring to the real estate market.  Let me know your thoughts.  I’d love to hear them!

In Part 1, I addressed which properties qualify for the proposed program and how the bank handling the short sale will determine if the borrower (seller) is eligible.  This post will deal with the process the banks will be required to go through once a contract is received on a property approved for a Short Sale. 

Imposed Guidelines on Banks for Approving a Short Sale Transaction

1.  Loan servicers must determine, with their investors, the minimum net proceeds that will be acceptable .  They must determine this before the Short Sale is started.  This amount is what the bank wants to walk away from the deal with. 

2.  The loan servicer and investors must also determine the amount of transaction costs they will allow.  This includes paying for buyer closing costs, paying for HOA documents, and the cost to the seller for closing the transaction. 

3.  The servicer must provide the borrower with a Short Sale Agreement.  The Short Sale Agreement outlines the roles of everyone in the transaction and key marketing terms.  Some terms of the Short Sale Agreement include:

• Price
• Proceeds
• Duration of Listing – not to be less than 120 days
• Listing Agent must be regularly doing business in the community the property is located in
• Either the bank approved list price or the acceptable amount the bank is willing to net from the sale
• Closing Cost amount that will be allowed by the bank
• Commission to be paid to REALTORS(R) - not to exceed 6%.  The REALTOR(R) may have to pay the bank contractor hired to facilitate the transaction for the bank out of their commission. 
• Any cancellation or contingency clauses
• That the transaction must be arm’s-length.  The property can also not be resold within 90 days
• The borrower is released from all liability of repayment of the 1st mortgage lien
• Borrower is entitled to a relocation incentive of $1500 – this is deducted from the gross sales proceeds
• Whether a portion of the gross sales proceeds are to be paid to subordinate lien holders in exchange for a release and full satisfaction on those liens
• Any income, tax, and credit consequences of the Short Sale
• Monthly mortgage payments during the short sale process will not exceed 31% of borrower’s gross monthly income
• Clause that if the borrower participates in the program, the bank will not foreclose during the duration of the program
• Any terms of termination

4.  The borrower must submit a request for Short Sale approval within 3 days of ratifying a contract.  The request must include:  contract/ addenda, purchaser’s financial documentation, and status of subordinate liens and or negotiations with subordinate lien holders.

5.  The loan servicer must indicate approval or disapproval of Short Sale within 10 business days.

6.  The loan servicer can not require closing earlier than 45 days from date of sales contract without borrower consent.

If the Short Sale is successful the following financial incentives are granted:

• Borrower – $1500 relocation incentive
• Loan Servicer – $1000 short sale incentive
• Subordinate Lien Holder – up to $1000 for approving to take up to $3000 as payment in full and satisfaction of debt

In Part 3 of this series, I will point out the flaws of this document and it’s implementation, as I see it. 

 

Whose wish will you be granting this Christmas?

Please remember to donate to your favorite charity. 

As a short sale listing agent, I get asked a plethora of questions regarding this difficult and frustrating transaction.  One of the most popular questions is the key to success when listing a short sale.  I wish there was an easy answer.  I wish there was one thing I could tell agents and consumers that would help them get through the short sale successfully.  There is no simple answer to this question.  A successful short sale is dependent on several different variables. 

First, short sales are successful when honesty and competence exist.  A short sale seller needs to know exactly where they stand with their bank.  It is very difficult to sell a short sale listing when it is days away from the foreclosure auction block.  The most desirable short sale candidate will be less than 2 months delinquent.  A short sale seller needs to be honest with themselves and with their REALTOR(R) when discussing their situation.  Digging your head in the sand won’t do anyone any good.  The more honest the seller is, the more accurate the information will be that they will be giving the REALTOR(R).  This process can be embarrassing for a seller.  It is important to remember that your REALTOR(R) is here to help you, not judge you.  REALTORS(R) work with so many numbers they will forget all about yours once the transaction is over; sellers need to be candid about their financial situation.  The seller and the REALTOR(R) have the same goal: a successful closing.  Your REALTOR(R) needs to be honest with you when helping price the home.  Pricing too high can be detrimental and can send a property to the auction block.  Under pricing the home may require that the bank negotiate the terms of the contracts they receive.  Some sellers are not good candidates for short sales.  That’s the truth.  More REALTORS(R) need to be honest with sellers when analyzing the seller’s short sale candidacy.  I can’t say it enough, competency is key to a successful short sale.  The competence rests on your REALTORS(R) ability to find a suitable buyer and navigate through the banks rules and regulations.  Real estate agents need to be trained in short sales and constantly be updated on the short sale process.  If your real estate agent isn’t up-to-date on short sale information, the harder it will be to have a successful transaction.  Your REALTOR(R) needs to have an understanding of Virginia law when it comes to foreclosures.  They also need to be able to direct you to good real estate attorneys and tax advisers.  There are consequences for short selling a home.  The REALTOR(R) needs to be competent enough to explain these consequences and help you find out the specifics for your situation.  

The keys that the banks are looking for are pretty simple.  Banks want to mitigate their losses.  They can only mitigate losses if the short sale contracts they are presented with allow the bank to lose less money than taking the property into foreclosure.  Fannie Mae reports that 3 out of 4 short sale transactions do not close.  So, 3 out of 4 contracts that are presented to banks don’t make economic sense to the banks.  Who is responsible for getting the banks acceptable contracts?  Well, the seller and the listing agent.  Sellers and listing agents need to list short sale properties at market value.  Sellers and listing agents should not be ratifying ridiculously low offers.  Ridiculously high offers are dangerous too.  The home must meet bank criteria for loss mitigation and they must appraise for the buyer to receive a loan.  This is difficult water to tread. 

What it all boils down to is that there is no one way to conduct a short sale.  There are no laws on how banks and consumers have to handle this type of transaction.  We have to apply laws for traditional transactions to this very nontraditional transaction.  Bank employees are also not trained on the real estate laws for each state.  In a time where even our foreclosures are being outsourced, you can not rely on the bank employees to really know what they are talking about.  They have scripts and a short leash that may or may not allow them to help you.  We are relying on inadequately trained employees to make huge financial and economic decisions.  The current way that short sales are being negotiated isn’t working.  However, it’s all we have right now.  Being aware of the basics of short sale approval is a great way to map out your short sale transaction.

Being a short sale listing agent is never boring.  It triggers migraines, anxiety, and hysterical laughter, but it is never boring.  I found myself discussing an unlawful re-key by a large bank this week with several of said bank’s employees. (A re-key happens to a property when the bank takes possession of a property through foreclosure.  The bank sends a contractor out to re-key the doors, thus preventing the defaulting seller from accessing the property.  The bank is also allows to re-key a property if the property is being used for illegal activity or the property has been abandoned.  None of the scenarios applied to my listing).

It must be said that when you call into almost any bank’s loss mitigation department you are guaranteed to be put on hold for at least 30 minutes and transferred to at least 3 different departments.  This bank is no exception.  I was not entertained by elevator music or bad 80’s love ballads while I was on hold.  Silence always leaves you questioning whether you are actually on hold or the line has been disconnected.  I guess TARP funds don’t cover hold music, only executive bonuses.  (Yes, that was a snarky comment).  Inevitably I got transferred to 4 departments each claiming a different reason for the unlawful re-key.  All of the reasons they give me do not apply in Virginia.  Finally, I am transferred to the Foreclosure Dept.  The End-All-Be-All of loss mitigation departments.   And this is when the phone call got interesting. 

Two minutes into re-explaining my re-keying problemto the foreclosure officer, he informed me that everything the bank’s employees informed me of in my previous conversations was false.  The only person I had talked to in the last 3 months that had any accurate information was him.  He explained this phenomenon by saying that some people in this world make good grades and some people make bad grades.  The amount of information these people are given and the amount of skill these people have depends on their grades.  Everyone else I had talked to had made bad grades.  He made good grades.  I should only go by his answers.  So… I can call into a bank and talk to someone who flunked bank training?  I could talk to someone who hasn’t been trained properly to handle the questions they have been hired to answer?  Banks hire D- students and rely on them to fix the real estate mess?  To continue the analogy, this bank rep saidthat some bank employees are good at subjects like English and other employees are good at subjects like medicine.  He was a “medicine” employee.  I countered by saying that I hadn’t called a writer and asked for him to perform open heart surgery on me.  I called a bank and expected the bank employees who answered the phones to be able to answer simple bank policy questions.  There was silence on the other end of the phone. 

What’s the moral of this tale?  Well, banks hire D- students.  The consumer has to rely on D- employees to get necessary and urgent information to the representatives that make the final decision regarding their short sale.  I might as well strap the short sale documents to my cat and give her a bus ticket and directions to the bank’s headquarters.  Consumers need to hire a REALTOR(R) who is well versed in short sales and the art of dealing with loss mitigation departments.  What have I learned from this phone call?  I will continue to make multiple phone calls to the short sale banks of the houses I have listed.  I will continue to document all of these phone calls and be sure to get the name of the person I have talked to.  I will also continue to verify all information I am given by a bank employee, just in case the bank hires nothing but D- students.

Two important Spotsylvania County Supervisor seats are up for election November 3, 2009.  (There are actually 3 seats open, but only two seats have candidates with opposing views on this topic).  If you live in the Lee Hill District or the Battlefield District, you need to pay close attention.  In August, the Spotsylvania County Board of Supervisors voted to join the Virginia Railway Express, the VRE; the commuter train that allows Fredericksburg area residents an alternative to driving to work in DC every day.  This was a narrow victory, a 4-3 vote.  However, there is a caveat to this victory.  Most start dates for new projects is January 1 of the following year.  The VRE project start date was moved to February 15 by the current Board of Supervisors.  This allows the new Board, elected on Nov. 4, to overturn the VRE vote.  Yes, this is politics at its finest. 

Although there are many issues on the table for the candidates to discuss, it appears they are all talking about the VRE.  Spotsylvania residents have had the luxury of using the VRE by driving to the Fredericksburg City station or one of Stafford County stations.  This luxury has come at a cost to Fredericksburg City residents and Stafford County residents whose tax dollars go to pay for these stations.  Spotsylvania County has been asked to join the VRE system several times in the last 17 years, but until this last vote, the invitation has been declined.  A VRE station in Spotsylvania County will not only make it more convenient to commute to Washington, DC, it can also open Spotsylvania County to being a DC bedroom community.  Fredericksburg City and Stafford County have enjoyed increased home sale prices because of their proximity to a mass transit system.  I’ve personally had countless numbers of clients who refused to look at homes in Spostylvania because of their lack of a VRE station.  There is also talk of a high speed rail service that would go from Richmond to Washington, DC.  Spotsylvania would benefit from having a stop in their county to help attract visitors to their historic sites. 

Are there drawbacks from becoming a member of the VRE system?  Well, of course.  Somehow Spotsylvania will have to pay for this system.  New tracks will need to be laid.  (However, jobs could be created because of the work involved with getting the Spotsylvania station up and running).  How do you pay for the system?  Well, taxes.  It’s just the way government works.  Had Spotyslvania jumped on board with this project 5 years ago, the system could have benefited from the areas rapid growth.  Spotsylvania will need to start planning for smart growth along the VRE corridor.  No one wants to see Spotsylvania become overcrowded or have the County loose the small town feel it prides itself on.  Smart growth is key and a realistic strategic plan will go along way. 

Here’s how the candidates for the Spotsylvania County Board of Supervisors plan to vote if elected:

Lee Hill District:                 DJ McGuire – against VRE                  Gary Skinner – for VRE

Battlefield District:           Chris Yakabouski – against VRE        Benjamin Pitts – for VRE

To get more information about where to vote and who you will voting for click here. 

This is a very important election for Spotsylvania County.  The outcome of the vote will determine the future of mass transit in the area.  Spotsylvania County residents need to consider the ramifications of not becoming a part of the VRE system.

Today starts the 2009 Virgina Sales Tax Holiday.  (Just in time.  Hubby needs a new laptop!) 

The following schools supplies are exempt during the holiday as long as they are priced $20 or less per item:

Binder pockets, Binders, Blackboard chalk, Book bags, Calculators, Cellophane tape, Clay and glazes, Compasses, Composition books, Crayons, Dictionaries and thesauruses, Dividers, Erasers (including dry erase marker erasers and dry erase marker cleaning solution), Folders: expandable, pocket, plastic, and manila, Glue, paste and paste sticks, Highlighters, Index card boxes, Index cards, Legal pads, Lunch boxes, Markers (including dry erase markers and dry erase marker kits), items for musical instruments, Musical instruments, musical instrument accessories, replacement Notebooks, Paintbrushes for artwork Paints (acrylic, tempera, and oil), paper, manila paper, colored paper, poster board and construction paper, Paper: loose leaf ruled notebook paper, copy paper, graph paper, tracing, Pencil boxes and other school supply boxes, Pencil sharpeners, Pencils, Pens, Protractors, Reference books, Reference maps and globes, Rulers, Scissors, Sheet music, Sketch and drawing pads, Textbooks, Watercolors, Workbooks, and Writing tablets. 

 

Clothing items that are $100 or less can qualify for the holiday.  The following clothing items are included:

Aprons -household and shop, Athletic supporters, Baby bibs and clothes, Baby receiving blankets, Bandanas, Bathing suits, swim trunks, cover-ups and bathing caps, Beach capes and coats, Belts and suspenders, Bibs, Boots, Choir and altar clothing, Clerical vestments, Coats, jackets, and windbreakers, Corsets and corset laces, Costumes (sold not rented), Coveralls, Diapers – children and adult -including disposable diapers, Dresses, Ear muffs, Footlets, Formal wear for men and women (sold, not rented), Fur coats and stoles, shawls and wraps, Garters and garter belts, Girdles, Gloves and mittens for general use, Golf clothing, caps, dresses, shirts, skirts, pants, Gym suits and uniforms, Hats and caps, Hosiery, Insoles – inserts for shoes, Jeans, Jerseys (both athletic and non-athletic), Lab coats, Legwarmers, Leotards and tights, Lingerie, Neckwear – including bow ties, neckties, and scarves, Nightgowns, Overshoes and rubber shoes, Pajamas, Pantyhose, Raincoats, rain hats, and ponchos, Robes, Rubber pants, Rubber thong/flip-flops, Sandals, Scarves, Shirts and blouses, Shoes and shoe laces, Shorts, Skirts, Slacks, Slippers, Slips, Sneakers, Socks and stockings – including athletic socks, Steel toed shoes, Suits, Suspenders, Underwear, Uniforms – athletic and non-athletic, Vests, Wedding apparel – including veils (sold not rented). 

For a more comprehensive list of tax exempt items click here. 

The tax holiday is August 7-August 9.  Happy Shopping!

I know you’ve all been on the edge of your seats!  So, here’s the last update regarding this particular internet real estate scam.  When we last checked in on Michael Richie, Nigerian internet scammer, he was trying to convince me to send him $1400 through Western Union to rent the house I already own.  This is the email chain that picks up where we left off. 

Hello Sarah,

Im glad you meet with some of the neighbours,you are to use Western Union Money Transfer to wire the money,below is the details will need:

Name: Micheal Richie

Address: 23 Plank avenue

City: Lagos

Zipcode: 23401

Country: Nigeria

Kindly back to me with the payment information that includes the Mtcn,Sender’s name and address and the text question and answer.You can use “what for” answer “Keys”

Sure the couch do stay.

I hope to read from you soon.

Regards

Micheal

 ____________________________________________________________________________________________

 Micheal,
 
I don’t feel very comfortable using Western Union Money Transfer.  It offers me virtually no way of knowing you actually got the money.  I am sure you can understand my hesitation since I am sending money to a foreign country.  Are you not willing to provide me with bank instructions?  It is the easiest and would allow me to deposit the rent money every month directly into your account.  There is no way for me to withdraw money using the wire instructions, only deposit – if that is your concern. 
 
What about the dining room table?  Can I use that too? 
 
When will I need to sign a lease? 
 
Thanks!
Sarah Kelso

___________________________________________________________________________________________ 

Hello Sarah,

I do not see any stress using the Western Union service,as i said in my previous mail,that we are in a research and due to the duration we are going to stay,we decide not to make use of our account only if we know how long you intend to stay,that is why i am sending you this application form.

There is no problem to receive the money down here once the information given is correct,its a fast and easy service.It should give you no burden that about the foreign country,I just provided you with my details for payment.I’ll wait for the form before I know what next to do.

RENT APPLICATION FORM BELOW
 
RENT APPLICATION FORM. 
FIRST NAME:__________?
MIDDLE NAME:__________?
LAST NAME:__________?
DATE OF BIRTH:__________?
PROFESSION:__________?
PHONE:
(CELL)PHONE__________?
(WORK)PHONE__________?
(HOME)PHONE__________?
KIDS _____ (YES/NO), HOW MANY ________
PRESENT ADDRESS: _____________________
CITY: _______________
STATE:______________
ZIP CODE: ____________
HOW LONG? ___________IF RENTING
WHY ARE YOU LEAVING__________?
IF THIS HOUSE IS BEING GIVEN TO YOU,
HOW LONG DO YOU INTEND STAYING? ____________?
WHEN DO YOU INTEND MOVING IN? ______________?
IF YOU HAVE A PET,
NAME OF PET: _____________?
KIND OF PETS: _____________?
HABITS
DO YOU SMOKE ______________ ?
DO YOU DRINK ______________?
DO YOU WORK LATE NIGHT ____?
 
Looking forward to hear from you with all this details so that i can have it in my file incase of issuing the receipt for you and contacting you.

Kindly don’t let us down in this our property and God bless you more as you do this.
 
Thanks and Remain Blessed. – Micheal

 __________________________________________________________________________________________

Michael-

You may not see the stress in sending money to a foreign country, but you’re not the one sending the money. You will be receiving the money.  You have no risk of losing the money, I do.  I don’t see the big deal in giving me bank account info.  Surely you had bank accounts while in the United States and surely you didn’t close them if you are just going to be in Nigeria for a year and a half.  Why can’t you give me the bank information and make this easier on all of us? 
 
I will fill out the application tonight and get it back to you tomorrow.  Why does it matter isf I work late at night?  And why does the application reference being given the house?  I don’t understand that part.  I also asked you in my previous email when I could sign a lease.  I need a lease to lawfully occupy the property.  It sounds like you guys haven’t leased out many properties.  You have mentioned a Realtor in the past, I am sure you can contact a local real estate firm while you are in Nigeria and ask for their services.  I don’t want to miss out on this house because of money and timing issues. 
 
Thanks!
Sarah Kelso 

 __________________________________________________________________________________________

Micheal -
 
Here is my rental application. Please let me know asap if I am approved, as I need housing asap!  The bank that foreclosed on the home I am currently renting has given me until June 30 to move out. 
 
I went to my local Western Union today and they said that they could not wire any money to an address with the zip code you provided.  Apparently it is the same zip code as a town in Virginia and they have had issues with that. They suggested I ask you for another address or specific wiring information for your local Western Union.  They also suggested that I wire the money directly to a bank like I’ve been asking to do the last few days. 
 
How would I get in contact with you if something went wrong with the townhouse?  Like a pipe leaks or something like that?  Do you have an application fee?  If so, how much is it?  When will I get a copy of the lease to sign if I am approved and how will I return the lease to you? 

RENT APPLICATION FORM BELOW   RENT APPLICATION FORM.  FIRST NAME:_Sarah MIDDLE NAME: Michele LAST NAME:Kelso DATE OF BIRTH: 06/12/1986 PROFESSION: Teacher PHONE: (CELL)PHONE 540-555-0952  (Please take note that I gave hime a 555 number) (WORK)PHONE (HOME)PHONE KIDS NO   (YES/NO), HOW MANY ________ PRESENT ADDRESS: 5324 Jefferson Davis Hwy  (this is the address to the local sheriff’s department) CITY: Fredericksburg STATE: VA ZIP CODE: 22401 HOW LONG?  8 months IF RENTING, WHY ARE YOU LEAVING  home was foreclosed on IF THIS HOUSE IS BEING GIVEN TO YOU, HOW LONG DO YOU INTEND STAYING? 12 months WHEN DO YOU INTEND MOVING IN? Immediately IF YOU HAVE A PET, NAME OF PET: _____________? KIND OF PETS: _____________? HABITS DO YOU SMOKE No DO YOU DRINK No DO YOU WORK LATE NIGHT No   Thanks or your help.  Sorry I have so many questions, but my last landlord really hurt me financially and I don’t want it to happen again. Sarah

 _______________________________________________________________________________________

Hello Sarah, 

The form is approved and it pleases me.I check on the website for Western union outlets for payment centre,here are few below for easy location.

RITE AID #2560

203 KINGS HIGHWAY

FERRY FARM SHOPPING CENTER

Fredericksburg, VA 22405-2650

Map and Driving Directions 

Today’s Hours: 10:00 AM – 8:00 PM 

Tomorrow’s Hours: 10:00 AM – 7:00 PM

 

0.8 miles 2 BOTTOM DOLLAR #2905

205 KINGS HIGHWAY

Fredericksburg, VA 22405

Map and Driving Directions 

Today’s Hours: 08:00 AM – 10:00 PM 

Tomorrow’s Hours: 08:00 AM – 10:00 PM

 1..04 miles 3 BOTTOM DOLLAR #2906

515 JEFFERSON DAVIS HWY

Fredericksburg, VA 22401

Map and Driving Directions 

Today’s Hours: 08:00 AM – 10:00 PM 

Tomorrow’s Hours: 08:00 AM – 10:00 PM

1.09 miles 4 GIANT FOOD #770

1245 JEFFERSON DAVIS HWY

Fredericksburg, VA 22401

Map and Driving Directions 

Today’s Hours: 08:00 AM – 9:00 PM 

Tomorrow’s Hours: 08:00 AM – 9:00 PM

1.11 miles 5 CHECKS CASHED

1301 JEFFERSON DAVIS HWY

Fredericksburg, VA 22401-4640

Map and Driving Directions 

Today’s Hours: 09:00 AM – 8:00 PM 

Tomorrow’s Hours: 10:00 AM – 5:00 PM

www.westernunion.com

Of cause you can wire to the address i gave you,here is it again below.

Name: Micheal Richie

Address: 23 Plank avenue

City: Lagos

Zipcode: 2341

Country: Nigeria

You are to get back to me with the payment information and text question and answer you choose.

I thought i explained why i cant be using bank wire in my last mail,i really wish i can help out in issue like this since you want to move in immediately as stated in the form,i can assure the shipment if the payment can be confirmed as soon as possible.Of cause i know its same zip with state VA but i do not think its same country.

Well as for the the security deposit for any damage,I will be sending some documents along with the shipment that contains everything about the house,also the lease,papers for repair if anything gets faulty and a paper form that will be scanned to me when you fill it with a pen.How many months do you want to pay for?

Remain blessed

Micheal

 ________________________________________________________________________________________

Michael-

Well this is good news!  However, as I stated in my prior email the local Western Unions won’t let me wire money to that address.  You will need to come up with an alternative.  I am competent enough to google my local Western Unions, although I appreciate that you took the time to do it for me. 
 
Please send me alternative wiring instructions so I can send you the deposit and 1st months rent today!
 
Thanks! 
 
Sarah

__________________________________________________________________________________________ 

 Hello Sarah,

 Im glad we are moving ahead,if i do understand what you mean by alternative,you are talking about the western union information,here is it below:

Name: Micheal Richie

Address: 23 Plank avenue

City: Lagos

Zipcode: 2341

Country: Nigeria

Get back to me if anything you dont get right.And i do hope you have a wonderful stay.

With Regards

 Micheal

___________________________________________________________________________________________ 

 Michael -

I don’t know how I can be more clear.  Western Union will NOT allow me to send money to this zipcode!  They said NO!  Please send me alternative wiring instructions so I can wire the money soon.
 
Thanks!
Sarah

__________________________________________________________________________________________ 

Is is possible to make the payment to the state while i give a Western union details?because i don’t really know what you are up to and i am waiting. 

Micheal

___________________________________________________________________________________________

Michael,

I don’t understand your question.  Make my payment to the state of Virginia?  The last I heard from you it was a Sunday evening.  Not much is open on Sunday evenings in this area.  You should be well aware of that since you’ve lived here.  I have been waiting for you to gve me some secure way of sending you money.  Thus far, you have not offered that.  So, I guess I’m the one waiting.
 
Sarah

 __________________________________________________________________________________________

 Hello Sarah,

 I got back to you with another Western union details,let me know if you cant use western union to make the payment.I also said you can make use of Money Gramm.I dont understand why this payment can’t go through,western union dont have much problem like this.

I provided you with another address and yet you still say they complain,i called the customer care to make enquiry about this and they said of cause its possible,i dont think i am the one keeping you waiting,rather you are the one,i don’t know what other payment you are talking about when i just confirmed i can only use western union or money gramm for now. 

Name: Michael Richie

Address: Block 25a,Isolo estate,Isolo.

City: Oyo state,Ibadan

Country:Nigeria

Zip code: 23402

That is the changed address above.You next reply will tell my next step.

With regards

Micheal

 ___________________________________________________________________________________________

Michael –  

I had just wired the money from Money Gram, but I have put a hold on it becuase a funny thing happened today.  I went over to the house and ran into someone claiming to be the owner of the property.  I thought you owned the property.  Please explain so I can send go ahead and send the money.
 
Thanks!
Sarah 

___________________________________________________________________________________________ 

 Hello Sarah,

 I left information with one of my Realtor about the house but i later told him not to bother ill handle things myself,apart from that ,anyone you meet there is not the owner.I am the owner and you contact me initial on it from craiglist.

You can go ahead and authorize the payment while i prepare the shipment tomorrow first thing.I do hope you don’t get yourself involve with anyone trying to claim he his the owner.

I wait your remain soon.I will be waiting for the payment information.

Remain blessed.

Micheal

 __________________________________________________________________________________________

 Michael-

So, the man that showed me the tax records for the house that says he is the owner is not the owner?  It said his name right there on the tax records.  He also said he would have me arrested if I moved into the property.  I am so confused.  Please provide me with something that says you are the owner of the property.  How long have you owned this property?  Who did you buy it from? 
 
I will only take the hold off of the transfer once you confirm ownership.
 
Thanks.
Sarah  

 __________________________________________________________________________________________

 Hello,

This is what am talking about,ever since i removed my post from craiglist,its not other secure because people will claim they are the owner,if the payment can be processed today,i can have them shipped with in 15hours,ill have to pay for express shipment.

I have the documents here with me as well,i suggest you ignore any issues from him,i am giving you my words and do not panic over anything because my house is secured and under a good control once some one moves in,all this will be over because you will be having the original papers with you.

Thanks for understanding.

Micheal

__________________________________________________________________________________________

 Michael-

If you do own the house you should be able to supply me with some sort of record saying that you own the house.  You should at least be able to tell me who you purchased it from and when.  You are not making me feel very secure about this transaction. 
 
Sarah

___________________________________________________________________________________________ 

Hello Sarah,

I don’t know how i can proof this to you any longer,I said in my last email that i am here with the documents of the house but it seems you don’t want to believe me.

This are the documents that can show that you are leasing from the true owner of the house,it makes no sense if i tell you when i bought it,its not a proof,or who i bought it from,but i believe a paper work can show all this with,i said this is 100% risk free and don’t get bored over the person you meet in the house claiming to be the owner.

If you are doubting me and then i believe you should put a stop to the payment because i am calm about this situation as i said,i want to trust you that you will handle and care of my house like yours,and i want you to believe that all required info will be shiped to you

Micheal.

 __________________________________________________________________________________________

 Michael -

I will handle this house like it is my own.  Don’t worry about that.  You know why I’ll treat it so well?  Cause it is MY own home!  I own this house!  I pay the mortgage on this home!  I am the only one with the right to rent it out.  See, if you truly owned the home you would be able to reference things about the home and realize that tax records are public and that anyone can see who the owner of a home is. 
 
You are a con-artist!  And not a very good one.  Luckily 2 of the consumers you tried to rent MY house to contacted me directly.  That’s how the Craig’s List post was removed.   
 
I appreciate you playing along with my game. I have been posting your emails on the internet as a warning to consumers and homeowners.  I’ve also sent our correspondence to the local sheriff’s office, the FBI – Internet Crimes, and, again, it has been published on the internet for posterity. 
 
I recommend you do your best to make sure you don’t STEAL any of my properties and list them as your own again.  I also recommend that you get out of this line of business.  You aren’t good at it. 
 
Thank you for taking the time to give me as much information as you have about your enterprise.  It has been thoroughly entertaining and very educational.
 
Regards.
Sarah

___________________________________________________________________________________________

That was the last time I heard from Michael Richie.  What has amazed me the most about this entire ordeal is the length these scammers are willing to go to get the money.  I was also flabergasted when the scammer actually mentioned Craig’s List scams to me.  Consumers need to remember that these scam artists wouldn’t be running these scams if they didn’t work.  This particular scammer tried to play on my emotions and religious beliefs to get me to send him money.  They will do whatever they need to do to have a successful outcome.  Do your homework when trying to rent or purchase a property.  Hire a professional to help you through the process.  And remember, if it looks too good to be true, it most like is.

It’s that time of year again!  It’s time to celebrate Cinco de Mayo!  First, a little history lesson, Cinco de Mayo does not celebrate Mexico’s Independence Day.  Mexican Independence Day is September 16th.  Cinco de Mayo celebrates the victory of 4,000 Mexican soldier against8,000 French soldiers on May 5, 1862.  This battle was the first time the French had been defeated in 50 years and it was the last time the Americas were invaded by a foreign army.  Cinco de Mayo is a regional holiday and is not celebrated in all of Mexico, but many other countries use the day to celebrate Mexican heritage. 

Where will you celebrate Cinco de Mayo?  Here are a few Fredericksburg suggestions:

1.  El Charro- This is my my favorite Mexican restaurant in Fred.  Located at 4611 Southpointe Pkwy off exit 126 (I-95).  The restaurant features a large bar, ample seating, and a large projection screen tv.  Drinks specials are offered throughout the year.  The prices are good and the food is great!  I usually get the #5 or the steak fajitas.  Free chips and salsa are served as soon as you sit down.  The waitstaff is friendly and fast. 

2.  Pancho Villa -Multiple Fredericksburg locations including: 10500 Spotsylvania Ave, 754 Warrenton Road, and 155 Garrisonville Road.  I hear alot of people talking about Pancho Villa, but I still prefer El Charro.  Expect Pancho Villa to fill up fast tonight because they are better known in the community.  Most of their locations offer ample seating and the service is pretty fast.  Prices are reasonable for Mexican food.

3.  Carlos O’Kelly’s -2306 Plank Road.  Yes, I am suggesting an Irish/ Mexican restaurant.  Actually it is just a Mexican Restaurant, if memory serves me correctly.  Parking is limited, but the restaurant offers plenty of seating.  Prices are good and the food is pretty good, but this is a large chain and you do loose some of the authenticity with large chains. 

4.  Chili’s - Several Fredericksburg locations including:  3104 Plank Road and 100100 Southpointe Pkwy.  If I had to choose a place to celebrate tonight, this would be my second choice.  Yes, it is a chain; yes, it is barely Mexican food.  But, the fajitas are great and the drink specials are awesome.  This is the most expensive of my suggestions, but it does offer something for everyone.   

Happy Cinco de Mayo!  And remember, celebrate responsibily!