J. Philip's Westchester Real Estate Blog

I saw something today I never witnessed before. It happened when I was covering a home inspection for one of my agents (Yes- I know. What a great guy I am).  A home inspector brought the buyer onto the roof to show him something. I was so surprised to see this that I snapped a picture of it on my phone. Now, this was the first time I ever met the inspector. He was a sharp guy, handled the buyer's 3-year old son like a champ, and from everything I saw made a thorough, straight inspection. He even had one of those infrared thingies that can detect moisture and rodents in the walls. He really was very good in every other way. 

However, I know inspectors who wouldn't go up on a roof themselves. It's part of risk management. I have often said that New York is a shark tank of liability, and many inspectors don't feel it wise to climb up there, opting instead to making a visual inspection , even using binoculars. But they don't go up there. 

We can argue whether or not that is right or wrong, but I have never seen an inspector take a buyer up there with him. The buyer is a young guy, ostensibly fit, flexible, and coordinated. But gravity is gravity, and I really wonder if the inspector's insurance, let alone the home owner, would be comfortable with such a thing. 

I am not trying to give the inspector a hard time, or impugn his judgement, but I really do have to wonder if that move is very wise. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

Both state and county are getting the word out that downpayment assistance and grant money is being made available to Westchester and surrounding county home buyers. Some highlights of state programs include the following:

• Veterans assistance
• Remodeling purchase money mortgages
• Down payment assistance loans
• Construction incentives
• SONYMA low interest and low down payment programs

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

Tomorrow is a closing on the purchase of a home for clients I first met in April of 2009. 16 months, dozens of homes, 2 offers, 2 homes inspections, 1 heartbreaking lost deal and about a hundred conversations later they will close on that perfect home, which I first blogged about this past Spring. 

It is almost surreal that we are finally closing after such a long process. We looked in earnest for over a year, and this past March we thought we had THE house until another higher bid came in right before we signed contracts. It was crushing to come so close and lose the house when we thought we had it. However, hokey as it sounds, we decided that these things happen for a reason and that better things awaited us. We were right. This home was also a multiple bid situation, but we came out on top, and the listing agent and I have kept in very close communication every step of the way. Nothing was left to chance. 

So, tomorrow morning I will leave the house, buy coffee and doughnuts, drive across the Tappan Zee bridge to Nyack, New York and meet my friends at 8am sharp for our walk through. We will then go to the closing, make it official, get the keys and share a good hug and maybe a few tears. I have become very good friends with my clients in this process, they were dreams to work with, and if I could hand pick a pair of people to endure a long drawn out home purchase with, it would be Kate and Theresa. 

It will be a little strange to deal with them in a context where we aren't looking for a home, but I don't care. I am keeping in touch with these two. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

The HUD-1 is the official closing statement required by law that documents all money exchanged in a real estate transaction involving a mortgage. In general terms, any money exchanged not mentioned on the HUD-1 is considered a side deal and in all likelihood, illegitimate. I'm not speaking of the separate sale of furniture or a lawn tractor; I'm talking about under the table money. 

The HUD-1 is required in all transactions where there is a bank mortgage. They aren't involved in cash transactions or owner financing. But they are required if you have a mortgage involved. And they have to be issued at closing. In other words, if you walk out of a closing without a HUD-1 someone is in trouble, and in Westchester County that someone would include the lender, lawyers for buyer and seller, title company, or all of the above. It is signed by the buyer and seller. It is approved by the attorney for buyer and seller, bank attorney, and title company. It is serious business, and I have been at many a closing where everything was done except for the HUD-1 and everyone was working overtime to reconcile the numbers so the figures would be 100% correct. 

Often, as a courtesy, I am furnished with a copy of the HUD-1 as a broker. It makes sense- my fee is a line item on the form and it is a documentation for calculating referral fees if one is involved. 

It is unacceptable for a buyer to be told by their attorney at they'll be mailed the HUD-1 later on or that it is OK to leave and get the HUD-1 later at a closing. It should be given to them before they leave. Why? Because there is no reason for it to not be completed, and that is the rule. It's not an "I'll catch you later" thing, it is an "at closing" thing. To not be furnished with the HUD-1 at closing invites problems later on. If there is a mistake that 3 lawyers and a title company all miss, it can be revised with the imprimatur of the lawyers and title at a later time. That is rare. 

Don't leave the closing without your HUD-1. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

It has been New York law since 2005 that home inspectors be licensed by the Department of State. The reasons are fairly numerous, but they include the following:

• Consumer protection. Licensure is a starting point for vetting people to hire for the job.  
• Oversight. The population of inspectors is no longer murky, either. 
• Peace of Mind. This can be misleading, as licensed inspectors can still stink. 
• Professional Standards. Making them statutory protects the consumer.

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

The things you see in this business. This past week I posted about a small child I found after a home showing who wandered out of her home and how I made sure she was back in the care of her (mortified, surprised) mother. I didn't write it to get a pat on the back but to hope that we all watch each others' back. 

We have work to do. 

I first heard the term "forgotten man" a few years ago when I saw My Man Godfrey with William Powell and Carole Lombard. We have all seen a forgotten man or woman. 

Yesterday, while showing a home to buyer clients in Stamford, CT, we saw 2 police cars parked at the side of the road. Next to the cars was a tarp covering something on the banks of a wooded neighborhood creek. The area was taped off, and it really did look like the scene of a fatality. After we looked at the house, my client walked over to the two officers and confirmed the sad truth that it was indeed a fatality. To paraphrase what he was told, a local old crazy guy who wandered the city was found to have perished in the creek. From the sounds of things, he was homeless and troubled. The Forgotten Man's final hour was in that creek. He might have drowned, he might have had a heart attack and fallen in , or something more troubling. Regardless, someone's baby's rough life was over. We were random witnesses to the aftermath. 

When I got home, it was late. I missed putting the kids to bed again, but I got to see them sawing wood in their Thomas the Tank Engine bedsheets, snoozing a sweet opera to their father's ears, resting from a day of summer joy. It was a contrast I could not ignore. They will wake up to another day of idyllic sun-drenched fun, with roller skating day at camp, a blow up kiddie pool, Carvel ice cream, and their mother's doting. 

I'm not what you'd consider a religious guy but I hope this Forgotten Man will wake up in God's arms, shed of his troubles, whole again, and as happy as my children. I hope his final hour was not as bad as it appeared, and that he even laughed or remembered an old joke before going to sleep. But beyond that I hope the Forgotten Man will never be forgotten, and the perfunctory police search for next of kin or anyone that knew or loved him will not be fruitless. I hope his memory is more dignified than his demise. If anyone knew the poor soul who breathed his last in east Stamford on Brookside Drive in the creek that feeds Holly Pond I want you to know that I won't forget. 

Anyone who think we just unlock doors and comment on decorating and do not see what goes on around us is nuts. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

I will be hosting an open house this afternoon from 1-3 pm at 1001 Brentwood Drive in Tarrytown. It is a rare, 4 bedroom end unit townhome in the Watch Hill complex with a finished basement, deck, 2 car garage and fireplace. It is loaded- master suite, over 2400 square feet, and a cul de sac location. Moreover, at $499,990, it is priced $65,000 less than the last 4 bedroom which sold in the complex a few months ago. Someone will be getting a very good value when they make this their home. 

1001 Brentwood Dr, Tarrytown Open Sunday July 11, 1-3pm

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

I originated mortgage loans from about 2002 until 2006 or so. I considered starting my own mortgage brokerage but decided against it for several reasons, including the growth of my real estate company and the vast changes in the industry after the sub prime crisis. That required more learning than I could spare if I wanted to properly manage my real estate brokerage. I no longer originate mortgages. However, I do know the difference between interest rate and APR.

For most of my time in the industry I worked for brokers, not direct lenders. They seemed to me to have more flexibility in placing loans. My first company said that applicants who made one application with her had dozens of options whereas anyone who applied with a local bank had but one. In 2002, that made sense. It no longer does. Changes in the laws of the land, especially here in New York, have marginalized mortgage brokers and given large direct lenders an advantage in the market place. The reasons why are for another post; the fact is that consumers who use a broker need to know some things. 

First, mortgage brokers are not able to make loans. They place them with 3rd parties. This is  not bad, but it does make a pre approval from a broker a lie. Mortgage brokers can issue prequalification letters. They cannot issue a pre approval letter. They can't loan. As a matter of fact, New York compliance regulations stipulate that mortgage brokers state that they place loans with 3rd parties on their letters. You'd be surprised how many do not. DUMB. 

Second, mortgage brokers have to disclose what they are earning on a loan (otherwise known as yield spread premium). Bankers do not have to disclose this. Fair or not, it is the law. While pricing is not firmed up until you lock your rate, it is important that you as a consumer get a good faith estimate at the time your application is made. Too often, I have dealt with buyers who did not like their closing statement, and when I asked them what their GFE (good faith estimate) said, they told me that they never got one. It was coming. They couldn't get it right away. The dog ate it. In any case like that, they were victims of an unethical practice. 

In New York, many good brokers have gone out of business. Public perception has put more confidence in banks, and brokers have borne the brunt of the economic downturn with the sub prime meltdown and so many stories of fraud in the news. You would think that this would make the existing brokers more mindful of watching their Ps and Qs, but in my experience, the opposite is the case. With one notable exception in my experience, mortgage brokers have not adapted to the new environment, causing suspicion and uphill battles.

I still get bogus preapproval letters with no compliance verbiage on Microsoft Word forms. This makes getting an offer accepted really hard for the borrower, who has no idea that they are at a disadvantage. I still get assertions that a borrower is a "slam dunk" from originators at brokerages, and when I ask what the Desktop Underwriter findings were for the borrower I get a blank stare. Desktop Underwriter, or DU, has been the industry standard for both bankers and brokers in automated underwriting. It isn't foolproof but it is an indication of accuracy and thoroughness. If a borrower hasn't been submitted to DU without a really valid reasons they are a huge question mark. 

Caveat emptor to both buyers and sellers. Find out who is vetting the prospective buyer/borrower, because that can be the difference between a good sale and a long drawn out non-deal that wastes weeks and months. 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

It isn't through the house yet, but apparently some Senators or their kids haven't closed on their new house yet and they saw that thousands of people would lose out on the stimulus tax credit if something wasn't done. While I love to sardonically suspect self interest, I don't care what the motivation was, because we are halfway toward an extension which will have plenty of home buyers, including my own clients, exhaling in relief.

Often, delays are not the fault of the buyer, especially in lawyer-laden New York, where some attorneys don't mix so well with deadlines. I shouldn't pick on attorneys (although I can't resist), because other delays could be lax agents, short sale red tape, and mortgage issues. If passed, the extension will be for 90 days, putting the closing deadline bat September 30, 2010.

Frankly, I don't see a reason why they only gave people 60 days from April 30th in the first place now that I think of it.

Why have a deadline at all? What's the harm in extending the credit for anyone who was under contract on April 30, 2010?

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

I occasionally have clients who don't have or have not committed to an inspector, attorney or mortgage company. They often ask me for a referral, which I happily give. I recommend good, experienced, local industry professionals who serve the clients well. 

Upon occasion, the clients go their own route, with varying degrees of success. Sometimes it is fine, and I make the acquaintence of a new lawyer, inspector, or lender. 

Sometimes it is a disaster.

Instead of using a local attorney who specializes in real estate, the client elects to use their 2nd cousin the litigator, or the free attorney they get gratis through their job or union. 

Or, instead of using a local direct lender whose office they can walk into, they elect to use an Internet lender or mortgage broker 3 counties away who promise them a too good to be true rate. 

Or, instead of a home inspector with professional affiliations like ASHI who owns a digital camera and will use it in the reports, they go with the guy whose website is more interested in selling franchises of his "brand." 

When I ask people why they didn't choose to use the professionals I recommend, some have actually wondered aloud why I was so enthused about them. They say it was almost like there was something in it for me, like maybe a kickback.

Something in it for me.  A kickback. 

Well, as a matter of fact, there is something in it for me. I do get a kickback. There- I said it. 

The biggest problem with using hacks you find on the Internet as opposed to tried and true, trusted referrals, is that they don't work together with me. They don't return calls. They don't solve problems aggressively. They don't get proactive. And that is fertile breeding ground for a crisis that costs you money. And in real estate, there are no cheap problems. 

A good transaction where your interests are served. That's my kickback. That's what's in it for me.  

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission