Given the popular response to my interview with Mayer Dallal
(www.mayerdallal.com), I have good news to report: Mayer just did an encore performance, where he answered a series of questions about streamline financing, a hot topic in the mortgage industry.

This announcement is important because, unlike so many real estate
“professionals” who lack the experience and wisdom to offer sound
advice, Mayer is a proven leader with a series of testimonials to his
credit. More importantly, I choose to highlight his credentials – and
I do not typically showcase individual executives in the real estate
industry – because I trust his guidance. Mayer is the real deal. What
does that mean? If you read my interview (see below) with Mayer, one
thing is undeniable: he can help people who need a trusted leader to
manage the complexity of today’s real estate market. Please call him
at 1-800-871-9326, or mayer@mayerdallal.com

1. In our last interview, you gave a lot of helpful information about
your business in general and short sales in particular. What new
issues are on your radar screen?

Now is an excellent time to discuss FHA streamline financing, because
this option allows a current FHA mortgage holder to refinance his or
her mortgage on excellent terms. Streamline financing is about getting
a great result for the borrower.

2. How is your approach to streamline financing different than the
tactics used by your competitors?

Unfortunately, many of my competitors use streamline financing as a
ploy to attract borrowers. My approach has nothing – I repeat: nothing
– to do with marketing; I know the rules governing streamline
financing, and I continue to educate borrowers about ways to take
advantage of this opportunity.

3. How does this process work?

The process is very simple. No appraisal is necessary. Borrowers must
currently have an FHA loan with a minimum of 6 months in loan
payments. Also, borrowers need a minimum credit score of 640. Best of
all, borrowers do not have to go through the whole qualification
process. I simply need a copy of one of the following, to help
potential borrowers: one paystub, bank statement, Social Security
card, driver’s license, note or deed.

4. That process is simple! Why is now such a good time to seek
streamline financing?

Rates are at historic lows. Now is the time to take advantage of this
opportunity. As I tell my current and prospective clients: get the
facts – and then take action! Streamline financing is one such way – a
power way! – to seize this opportunity.

Mayer Dallal is a residential real estate expert and commentator. He recently took the time to answer some questions about his services and various trends in his industry. Mayer can be reached directly at 1-800-871-9326, or mayer@mayerdallal.com.

Mayer Dallal is a residential real estate expert and commentator. He recently took the time to answer some questions about his services and various trends in his industry. Mayer can be reached directly at 1-800-871-9326, or mayer@mayerdallal.com.

1. Why should homeowners contact you for a short sale?

MD: With nearly two decades of experience in the real estate industry, I offer homeowners the kind of perspective that is the result of wisdom. Not theory. Not intelligence alone. Rather, wisdom is the product of success and adversity, the ability to withstand difficult challenges and better prepare for opportunities others will miss. While the economy is in turmoil – and that upheaval continues to strike individuals and families nationwide – I also know that the real estate industry will weather this storm. My outlook is not a form of naive optimism, nor a refusal to acknowledge current difficulties. On the contrary, I know that the residential real estate market will recover, because my exposure to past crises teaches me that homeowners still have many tools at their disposal that can lessen the impact of potential foreclosures or rapidly dropping prices.

Short sales are a prime example of this point: an effective tactic to leave an otherwise seemingly untenable situation. I have a lot of experience advising homeowners concerning the use of short sales. To answer the question more directly: homeowners should contact me about short sales, because – unlike many other people in this industry – I know how to accurately and effectively handle these transactions. Qualifications matter — period. To benefit from a short sale, a homeowner must qualify for this opportunity. Other individuals may offer empty promises, but I have the ability to quickly determine which homeowner can use a short sale.

2. What benefits or expertise do you offer, compared to your competitors?

MD: I personalize my services for each client I advise. Bigger companies do not take the time to learn the needs of the clients they service. In fact, bigger is often synonymous with bureaucratic; the failure to achieve quick results without any hassle or additional costs. Some of my competitors may have more staff or resources at their immediate disposal, but I execute my transactions with absolute precision and respect for my clients. To repeat: I structure solutions for each person I help. Forget all the jargon about statistics and marketing presentations; I listen to the needs of my clients. Some of their stories are inspiring, while others are, unfortunately, tragic tales of people victimized by uncertainty and sudden economic hardship. As a human being, I want to do the right thing. I expect the same from someone who counsels me: honesty, integrity and compassion. Those traits are not fads; they're standards of personal decency.

3. For first-time home buyers, why are your services the best to use?

MD: The residential real estate business can be very complex, even for industry veterans like myself. For first-time home buyers, the sheer number of choices can overwhelm most people. For example: first-time buyers are not all alike; they have different needs and different expectations, which is why I customize a program for each client I advise. I help first-time buyers navigate this process, giving them options so they can educate themselves about the benefits (and restrictions) of the various tools available to them. Other firms merely shuffle documents, and reduce prospective buyers to a series of numbers. That approach is cold and simply wrong, a disrespectful attitude to the very clients we have a duty to counsel. The lesson here is simple: give clients a variety of choices, and work with them so they find the solution that best fits their individual circumstances.

4. You handle a lot of real estate business. Please give an overview of the scope of services you offer?

MD: I offer a full array of services, from FHA loans to short sales to conventional mortgages to general real estate advice. With nearly two decades of experience as a real estate professional, I know what first-time or repeat homebuyers need. In fact, my flagship website – MayerDallal.com – contains a wealth of information about these services, along with helpful videos to guide people through the respective topics I address. Also, I work with a federally chartered bank, which enables me to close deals in approximately three weeks or less. These strengths separate me from the majority of other businesses in the residential real estate industry. Think of my services within this context: I anticipate the needs of my clients, and also have appreciation for trends that will influence my services, thereby creating an ideal business environment.

5. What are some key trends or statistics people should educate themselves about, when dealing with residential real estate?

MD: The biggest trend, right now, in the residential real estate market is short sales. Rather than succumb to foreclosure, which can have severe emotional and financial consequences, homeowners have a better option. And yet, confusion abounds concerning the use of short sales. For those who qualify – and know they qualify – short sales are an excellent way to preserve credit and get back on the road to owning a home. But a far greater number of people who qualify for short sales are unaware this tool even exists. I counsel clients about short sales all the time, fielding calls and emails about how to use this option and the broader implications involved with this tactic. I remind current and prospective clients that short sales only make sense for those who qualify. Let me underscore this point further: some unscrupulous individuals in the real estate industry continue to mislead homeowners about short sales, creating false hope and unreasonable expectations. I would rather act like a doctor than a charlatan. Which is to say, I have a responsibility to be frank but compassionate, to deliver, when necessary, bad news. If someone's financial prognosis is not good, the worst thing I can do is speak in generalities or mistruths. On the other hand, if I can help someone take advantage of a short sale then I will do everything in my power to make that happen.

6. Your sites have a lot of content. Please explain the benefits your sites provide, especially in comparison to your competitors?

MD: MayerDallal.com is my flagship website, a destination for buyers, sellers, media and people with an interest in the residential real estate industry. The site has a lot of content, segmented by specific topics and complemented by educational videos for each area of discussion. MayerDallal.com is about transparency, too; I want readers to have the same information I use, so there is no ambiguity about the services I provide. I treat my clients as my equals, which means I do not withhold information or position myself as someone who has exclusive access to proprietary intelligence. Instead, I make it clear that MayerDallal.com contains all the key facts and statistics that influence the decisions I make. The site exists for an important reason: to demystify a needlessly arcane process that gives my colleagues leverage over buyers and sellers. Forget that. MayerDallal.com is an easy-to-use site that is educational and relevant — the site is my expression of thanks to the people I serve.

7. Describe some of the audiences you help? In other words: who are your clients?

MD: My clients range from first-time homebuyers to veterans of the residential real estate market. These clients often become friends, since I invest the time getting to know these people so I can help them achieve their goals. Many times, I help clients who, quite frankly, need sound advice. Think of the situation from the perspective of, say, a first-time homebuyer: the process marks a major life change, filled with joy and apprehension, punctuated by anxiety about financing, legal costs and realtor fees. My job is to simplify this situation – and I do my best to achieve that result – so clients can focus on what really matters: a pleasant conclusion.

8. What are some your biggest successes, in terms of helping clients?

MD: As the testimonials on MayerDallal.com prove, I help people who need the guidance and wisdom of a proven real estate professional. The unsolicited testimonials on my site are both heartfelt and inspiring. These friends can attest to my ability to make a short sale happen, or my skill at finding customized financing. The point is: my successes are not about the size of a given transaction; my achievements are about restoring peace of mind for individuals who find themselves overwhelmed by economic uncertainty and needless complexity.

9. Please offer some predictions or thoughts about some notable developments you think will happen, in the short-term, for the residential real estate market.

MD: In the near future, I expect short sales to increase. As foreclosures continue to rise – the residential real estate market may experience another steep decline – short sales are, for many homeowners, the only alternative to financial disaster. There will be more news reports about short sales, more queries from potential clients about this option and more commentary about this issue in general. In such a situation, expertise will be a sought-after commodity, so people will need a trusted expert who has a lot of intelligence about the proper use of short sales. Without being too self-promotional, I think prospective clients will be happy to find me, because I already have a successful track record with short sales and other parts of the residential real estate market.

My February interview with Mike Foreman of constructionguru.com.

I talk to Mike Friday afternoon, June 18, 2010.

Lev: "So what are some of the latest developments in this saga of the contaminated drywall?"

Mike: "The judge's order has three options, all of which have to have back-end testing. You have to confirm and validate that you have resolved the issue.

"Option number one is to pressure wash the inside of the house. Number two is to HEPA vacuum. Number three is a spray-and-wipe system.

"Back-end testing requires that you need to get a certified independent third-party clearance.

"It sounds good, but when you look closer… Pressure-washing the inside of a house is as ludicrous as it comes in Florida with the high humidity. No matter what you pressure-wash it with, you're opening up a new can of worms with mold and mildew. We're not recommending that.

"I'm advising my clients — don't even give it a thought because the mold and mildew issue overrides all potential benefits.

"HEPA vacuuming may work in a laboratory but it is not going to work in general construction field conditions for numerous reasons. The surfaces are not even and smooth. They have crevices. It's almost impossible to get the suction you need into all those crevices.

"In a construction environment, particulate matter is getting stirred up and airborne and it resettles. Even if you HEPA vacuum three times, which we've had done, you're not getting the particulate matter out enough for clearance tests.

"We've proved over and over again that HEPA vacuuming on its own is not going to work.

"Option number three is the spray and wipe system. It sounds good but what are you spraying? How are you spraying it? Where are you spraying it? How are you wiping it?

"Then you have the back-end testing. There's no ASTM or OSHA standard to do this back-end testing. There are no certifications in Chinese drywall. There are no classes other than out in the field doing it the old fashioned way. Every day I learn something new and I've been in it since August 2008. I probably know more about Chinese drywall than anybody in the United States and I learn something new every day.

"My company has come up with a protocol where we're getting down to less than one part per billion. There's no such thing as zero in the real world of construction.

"In our system, we're able to treat the cabinets and to re-install them. We're able to treat the tile, stone, hard floor surfaces in place and solve the problem. We can treat pre-engineered, pre-finished wood floors in place so you don't have to rip them out."

"Judge Fallon is a great guy and he's done a lot of good things for the Chinese drywall class action lawsuits, but I don't see any money coming out of it so far to off-set the costs for the consumer. The Virginia Seven as we call them got a $2.6 million judgment against the Chinese drywall manufacturer. They've yet to collect a dime. It's now in the appeal process. The consumer is still out on the limb because they have no money to fix the problem."

"The product I'm talking about is Abisso Cleanse. I don't own the company. I don't have anything stock with the company, we inspect, confirm, and validate their work and they do a great job.

"They'll be the first to tell you that I am hard to deal with. I made them do a lot of things they don't normally do because I want my clients to have an excess of what the local agencies are calling for. The Consumer Product Safety commission has come up with interim guidelines. Interim means we're still working on it.

"We're exceeding the guidelines.

"My clients get a completed operations insurance policy that states that if anything associated with Chinese drywall comes back, then you've got a policy that will cover you for it and you won't have to spend any more money to pay for it.

"Now let's get on to the savings and benefits coming out from Fannie Mae and Freddie Mac. I think it is great that Fannie and Freddie are giving six month loan moratoriums on loan payments to people with Chinese drywall.

"What does that mean? We're adding six months worth of payments to the back-end of your loan. All this does for the regular consumer is to give them a little more money to pay their regular bills.

"A standard 2,000 square foot house runs $60,000 – $70,000 to abate and correct. The standard payment for such a house is about $1500 a month. Times six equals $9,000. That's not the money they need to fix the house. It gets them out of the house but now they have to rent a place to live while the house is being fixed. That's a good concept. But none of these people have the money necessary to fix their house.

"The government needs to come up with a loan program or they need to tell the lenders to refinance that loan, include the six-month moratorium, include the funding required to correct the house, and then lower the interest rate so it comes out to be the same payment people had originally or less.

"A program like that would answer a lot of the issues coming out of this. And if there's a settlement to the class-action lawsuit and these people get money, then they can have an agreement that that money goes straight to the principle and pays off that part of the loan.

"The judgments that these people got against the Chinese manufacturers are just judgments. They're not checks. They're getting appealed and dragged out. Meanwhile, the consumer is getting hung out to dry. The consumer is being told to spend your savings, do whatever is necessary, and we'll take care of you later. And if later never comes, where are they?"

Lev: "How is the real estate crisis affecting the treatment of tainted drywall?"

Mike: "My governor, Charlie Crist, in Florida has taken a pro-active approach. He's said that from now on, once your house has been diagnosed with Chinese drywall, it has zero value as far as the tax appraiser is concerned. Until the houses have been repaired, they have no value because no one wants them."

Lev: "What are banks doing when they take over houses with tainted drywalls?"

Mike: "They sell them as is. They're professionals at having no risk. Caveat emptor – buyer beware. If you don't check it out and you don't find out, too bad. The bank disclosed they were selling it as is."

Lev: "Where do the insurance companies enter into this?"

Mike: "Home owner policies are not paying out. They say that they have a pollution exclusion, a defective material exclusion. They're not paying for repair. The only state where you might get an insurance company paying for it is Louisiana and the insurance companies are fighting this. Louisiana laws are different than the rest of the states as far as insurance coverage.

"Insurance companies are running for cover. The builders insurance company, the installers insurance company, the suppliers insurance company, they should all chip in and pay to take care of the problem. The home owner's insurance should pay to make the person whole and the insurance company should recoup their money from the other insurance companies on up the chain."

Lev: "How do home owners protect themselves against unethical people who claim they can easily and cheaply fix tainted drywall?"

Mike: "They've got to do their homework. They've got to ask a lot of questions: Ask them what their treatment protocol is? Have they done it before? What is their track record with it? I want to talk to the last ten properties you've done. I want to talk to those people. What is your back-end testing? What is your guarantee? What kind of insurance policy do you have? How long have you been doing this? How long has your product been on the market? Is your product EPA registered?

"You've got all these questions but these smooth-talkers are telling them, Nobody has that. This is new.' But it's not true. We've done over 25 abatement, and treatments already. They've all tested out positive. We've gotten glowing reviews. The problem is money. I would've done 500 by now if people had the money. I have clients sitting on go and as soon as they have the money, they'll do it.

"The consumer has a lot of homework to do. We're an independent consumer-advocate company. I'll talk to them all day any day. I'm very reachable. I'll be honest with them all the way down the road. They need an advocate who will tell them the truth, not smoke and mirrors to get them to do what they want them to do."

Lev: "Are there any trends in this issue?"

Mike: "The truth is coming out. There are a lot of people involved in this who knew a long time before August 2008 when I became involved in this. As early as two years earlier, they knew about this and they continued until the proverbial poop hit the fan and they got exposed.

"When I first got involved in this in 2008, I was told by numerous peole that this is not a big deal. It's not as widespread as you think it is.

"When I realized it was the drywall, I realized these guys were lying to me. I know how drywall is manufactured. Drywall is not manufactured a couple of hundred sheets at a time. It's manufactured hundreds of thousands of sheets at a time. You're not selling it in a small quantity of a couple of pallets. You're selling thousands of pallets. So if you've got one pallet that is bad, you've probably got thousands of pallets that are bad.

"That translates into houses. You're talking about a significant number of structures that are going to be affected. The average house has only about 150 sheets of drywall in it. So to tell me it was a small number of houses, maybe only a hundred, was a lot of B.S. We're talking about thousands of houses, which is what I was preaching in 2008. That it was not a localized problem. That it was nationwide. There are potentially a hundred thousand houses affected by this easily. The number is getting larger every day."

"The consumer is being hung out to dry. There's no relief for them."

The "Economix" blog at The New York Times today features an article headlined "Interest Rates and the Housing Cycle" by Casey B. Mulligan.

Mulligan, an economics professor at the John D. Rockefeller-founded University of Chicago (read: citadel of privilege), treats "housing" as though it consists entirely of man-made "house" and no God-given land; he therefore leaves any mention of land or land values out of his conceptual framework despite the fact that without maintenance, man-made houses depreciate both in usefulness and exchange value over time while land, which is not a product of labor and exists even without human investment, generally becomes more valuable over time. Thus, confirming his profession's studiously cultivated blindness to reality, Mulligan writes that "The lower our long-term interest rates, the more weight the market puts on value created in the distant future, and the more houses are worth," but fails to mention that "houses" sit on LAND, and that the lower long-term interest rates, the more land is worth.

Furthermore, while focusing on interest rates and investment levels, Mulligan fails to tell his readers that significantly increasing the annual ad valorem tax rate on land values — with or without a reduction in taxation of improvements, and with or without a change in interest rates — will itself powerfully stimulate investment in real capital, raise wages and reduce unemployment. He fails to mention that heavy taxation of land values will reduce land prices and make "housing" truly affordable.

Mulligan writes:

…the major factors in the housing boom were something other than low interest rates and are much debated (Paul Krugman and Raghu Rajan recently debated the role of home loan lending standards, and I have written about the role of technical change).

Had the Federal Reserve been able and willing to raise long-term interest rates in the early 2000s, that might have softened the housing cycle but would have worsened a shortage of business capital on which many of our jobs depend.

Mulligan tinkers with superficial trivialities, but doesn't even mention land speculation, which was the major, fundamental cause of the "housing" boom, nor does he disclose the fact that increasing the effective ad valorem tax rate on land will greatly soften or eliminate the "housing" cycle while simultaneously increasing — not decreasing — the amount of business capital. His profession's fixation on "either/or" trade-offs stems from a spurious, false, non-essential "shortage" paradigm that would vanish in the presence of heavy land value taxation, especially if combined with the reduction or abolition of taxes on improvements, production, commerce and non-privilege-based incomes.

His company Stellar Management owns and operates major apartment complexes in such cities as Los Angeles, San Francisco, New York, and Washington D.C..

Stellar Management has been defaulting on properties all over the country. In December, Stellar defaulted on Aqua (formerly Marina Terrace) at 4750 Lincoln Blvd, Marina Del Rey. It was purchased by the publicly traded Brookfield (BAM) but it has kept Stellar on to manage the building.

In the last three months, Laurence Gluck has defaulted on over $700 million worth of loans.

The U.S. Attorney's office is going after him. PDF PDF PDF

Here is a typical comment on Aqua (formerly Marina Terrace) in Marina Del Rey:

It is SO true about the sirens. They go all day every hour and it can actually drive you out of your mind. When I moved in I stressed to the leasing office how important it was that I live in a quiet bldg. I was so deceived. My unit faces 7 air conditioning units from the bldg next door and I was told that the units do not run all night, but they do. I am being allowed out of my lease due to all the lies but what a pain it is to have to start looking all over again. Not to mention moving costs. They also CLAIM that the building is built according to condo specs. It is a blatant lie.

I thought it was only me that had issues with the noise but it's nice to read that I am not alone.

I have heard about the bike thefts. And yes, they let all these college students into the bldg who are so loud and leave their trash outside their units all day – and when you complain, they treat you like something is wrong with you.

The stairwells are stained with pet urine and it's quite nasty. And be careful, they are promoting on craigslist that the building offers free workout classes but they don't anymore. They actually are required to drop our rent when they remove an amenity but that wont happen. Everybody has a different rent. It's very odd. Tenants on the same floor, same size unit, can be paying $300 diff in rent. Very odd. And if you complain about it they don't care.

People get fired right and left or they quit because they cant take it anymore working for such low-lives.

All I can say is don't put yourself through it. Don't move in here. I hope to be out within 1 months. If not sooner. One person wrote the longer you live here the more you hate it and it's so true. Cool location but being on Lincoln the noise will truly drive you nuts.

Read more: http://www.apartmentratings.com/rate/CA-Marina-del-Rey-Marina-Terrace-formerly-Archstone-Marina-Terrace-And-Fiji-Villas-And-Chateau-Marina-1048136.html#ixzz0qJsZxkzf

The rent at Aqua runs from $2,000 to $3,000 a month. That's a lot of money to walk urine-infested stairwells and elevators that regularly break down. Dogs and cats use the stairwells to relieve themselves. The stench is rank and rooted deep into the carpet.

Here are some photos:

When Stellar Management defaulted on their loan, no announcement was made for weeks at Aqua. Finally, one of the tenants started putting up flyers.

Many tenants who don't renew their leases and go month-to-month face rent increases of $600 or more a month.

Another Stellar building, the Alexandria, located about a mile away in Manchester is also in foreclosure.

Other Stellar buildings have horrible ratings on apartmentratings.com.

Stellar has a history of taking over buildings, not keeping them up, and then defaulting on their loans.

The Health Department has cited Aqua for excessive dog feces.

Stellar has only been in property management for 18 months. They can get aggressive with their lawyers when tenants want out. One tenant took to sleeping with his furniture against the door. His relations with Stellar Management had gotten that bad.

I'm looking at an "Environmental Health Housing Official Inspection Report." It was done by James Daniel on April 1, 2010. He writes: "Observed dog feces on the pavement by the north side of the building. Organic matter on the carpet by the stairwell. Damage floor inside the freight elevator. Allege dog urine stains on the carpet here and there on the stairwells and the walls."

A tenant says: I am lied to by Lisa Curtis prior to move in about 12 air-conditioning units
I face (roof photos attached). She tells me after I ask if they run all
night, as I knew I would not be able to sleep if they did, "They do not run
at night."

I then move in and find out they do.

That was the beginning of this nightmare.

My first week here the elevators crashed, power went down twice and the
internet they force you to use, went down.

The longer you live here the more dramas occur. We didn't have a manager
here for over 2 months so nothing would be done if you went to Resident
Service and asked for help.

The noise here is horrendous. Although they say we have double paned
windows – they are worthless. Sirens run up and down the street at least
20-30 times a day. I was finally allowed out my lease 3 months after moving
in.

Lisa then began a campaign of telling employees not to help me.

When I asked for relocation money, as I would never have moved in here had I
not been lied to – they put this loser attorney on me from Karsaz &
Associates threatening me, accusing me of harassing employees that were
harassing me – and actually had the audacity to tell me I was not allowed to
work out of my home even though my lease is in my company name.

I then had to hire an attorney and defend myself.

After pulling the deed and loan docs and speaking to the owners of the land
(who also hate Stellar) I was told that Brookfield had now owned the
building. Apparently Stellar defaulted here in December.

Once I found that out I started to call them begging for help.

(At the same time a anew manager came in named, Steven, who was alarming to
say the least. I guess when they let Tracy, a 25 year-old, hire managers
for a 500 unit building that's what's going to happen. I wont even get into
the hell he took me and many others through. He was fired 2 months later
and now we are without a manager.)

At that point Karsaz, the loser, offers me $2500 to go away. Well I now
have incurred legal fees and $1500 for this nightmare, wasn't happening.

They also promised, in a legal document, they were going to provide block
out and sound proof blinds to help w/ the noise from the units. They made
me wait for 3 months and you can see in the attached photo what we ended up
with was a joke. This had to be taken down immediately because it was 100x
worse than the original blinds.

Moving on…

I rejected the offer and continue to beg Brookfield for help. At the same
time they tried to pressure me into signing a release that stated I would
not be allowed out of my lease unless I signed a release that I would not
talk to the press about what scum bags they are. I had to remind these
idiots that I already had two emails from them in Jan & March that I had
been allowed out of my lease and did not need any further permission to
leave.

One day, unannounced, Teri Hoyt from Brookfield (BAM) shows up at the
building to speak with me.

She offers me a deal and that once I found a place I liked – I would contact
her and she would wire me the money.

So I did that believing she would honor her word.

While waiting for over a week for the agreement I contacted her to ask for
it. When it was finally sent it had insane stipulations such as I had to
have the money go from my attorney to the new landlord (attached agreement).
As though any landlord would want to get involved in this – meanwhile I
would have to sign a non-disclosure so I couldn't even tell the new landlord
what was going on here.

Clearly this was all a game.

She then after telling me she wants me out of here, and after I asked to at
least allow the lawyer to give me 50% at signing – she sends me an email
stating you don't have to sign the agreement we are okay if you continue
living there, and then says "Consider the deal withdrawn."

These people are SO wacked.

So I go down to the biggest (he's actually quite short) prick, Tracy Fones,
who runs their property (into the ground) 'The Enclave' in Silver Spring,
MD [now in foreclosure], and we agree that I would live out my attorney's fees ($1500) instead of
them giving me the money. I tell him I planned to vacate by the end of the
month but would keep him abreast of any changes…and I did.

Below is the agreement.

"That is confirmed and I will make sure no late fees are charged and no 3 day notices are sent out."

Sent: Tue 5/4/2010 7:11 PM
To: Tracy R. Fones
Subject: RE: May Rent

Hey Tracy:

I was waiting for you for a while in the lobby but you were busy.

Per my email to you, and our conversation, I'm confirming that I will be
living out the legal fees which I incurred because of Stellar and Brookfield
not honoring their commitment to reimburse me for said fees.

Based on a monthly rent of $1827.00 and fees totaling $1500.00 — it comes
to 25 days. My intent is to be about by the 25th and will keep you up to
date on any changes.

If you need to go over anything with me please let me know.

Thanks"

Clearly this was not a guarantee of a move out and it was also clear this
was reimbursement.

All month I kept him in the loop verbally and in writing that I had not
found a place – and would probably wait till after the 1st as I knew more
listings would become available.

At no time (prior to the 25th) did he ask me to bring rent down or even let
me know there was an issue with it.

Suddenly…on the 26th I receive this…

"Per your e-mail on May 4, 2010 we agreed you would not be responsible to
pay rent for the period of May 1, 2010 through May 25, 2010 if you vacated
on or before May 25, 2010. Today is May 26, 2010 and since you have not
vacated your apartment you are now responsible for all of May 2010 rent in
the amount of $1827.00 as well as all rent and utility charges going
forward.
Please make payment by May 31, 2010 to avoid any further actions needed to
collect the outstanding rent.
Please let me know if you have any questions.
Regards"

Tracy Fones | General Manager
The Enclave | 11225 Oak Leaf Dr. | Silver Spring, MD 20901
Office: 301.593.6600 | Fax 301.593.0218
E-mail: trfones@enclavesilverspring.com

*************************

Clearly the guy is… (and I told him so to his face while he stood there
saying nothing) and clearly this was their game plan all along to get me out
of here. When I reached out to Teri she stands by what he did and accused me
of illegally obtaining personal information about tenants…when it was the
assistant manager, Diashell, who actually disclosed the information to me.

She actually told me about another tenant bouncing checks.

This place is insane. There are 2 women who work here who use the word
'aks' instead of ask. I mean if you are going to work in a large complex
shouldn't you be able to speak English properly?

So I then brought down money for the 26-1st and they sent it back to me.
They then served me with 3 3-day notices over 6 days. First they had the
wrong date, second one did not include my biz name – and the 3rd was served
on the 8th of June after I brought down June's rent and the last week of May
again. That too returned. They actually served me with the 3rd one days
prior to returning $2100 they were in possession of.

So now I await the next move from these unethical morons.

Meanwhile the building is in an uproar as their accounting dept is so
screwed – people are paying rents but they are not being entered properly
and so they too are being served 3 day notices asking them for thousands
they do not owe.

Others are being pressured into signing new leases or their rent will go up
$600-$1000 a month.

These people are the equivalent of Bernie Madoff.

We are signing a petition to get Stellar out so lets hope for the best.

Everyone here has a story of deception.

So…apparently this building is built over gas tanks. We are next to a gas
station and some women have been getting sick.

Stellar was concerned that some information would come out about the gas
tanks and the structure of the building and then Brookfield would not buy it
– but I guess they were able to suppress it.

Just another day at AQUA.

Here is the settlement agreement:

SETTLEMENT AGREEMENT

THIS SETTLEMENT AGREEMENT (this “Agreement”) is made and entered into effective as of April __, 2010, by and between, in her individual capacity and in her capacity as representative of (“Tenant”), and Marina Terrace I Owner, LLC, a Delaware limited liability company (“Landlord”).

RECITALS

1. Tenant is the tenant under that certain Residential Tenancy Agreement dated as of October 7, 2009 (the “Lease”). Capitalized terms not defined herein shall have the meanings set forth in the Lease.
2. A dispute has arisen between Tenant and Landlord, and the parties now desire to settle such dispute on and subject to the terms and conditions contained in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants, conditions and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Vacating the Premises; Lease Termination. Tenant shall vacate the Premises no later than the date that is forty-five (45) days after the date of this Agreement. Tenant shall leave the premises in good condition and repair, and otherwise in the condition as required by the Lease. Rent shall continue to be due and payable pursuant to the terms of the Lease through and including the date on which Tenant vacates the Premises. Notwithstanding anything to the contrary contained in the Lease (including, without limitation, Section 3 thereof), Landlord and Tenant hereby agree that the Lease shall expire, and the term of the Lease shall end, on the date that is forty-five (45) days after the date of this Agreement.
2. Settlement Payment. Upon receipt of Tenant’s signature to this Agreement, Landlord shall deliver the sum of $7,000.00 (the “Settlement Payment”) to Tenant’s attorney, xxx (“Tenant’s Attorney”). Tenant’s attorney shall (and by the signature of Tenant’s Attorney below does hereby agree to) hold the Settlement Payment in an attorney trust account for the mutual benefit of Tenant and Landlord, and shall be authorized to release the Settlement Payment to Tenant only upon receipt of written notice from Landlord that all of the following have occurred (the “Release Conditions”): (a) Tenant has vacated the Premises in compliance with this Agreement and the Lease, (b) Tenant has not defaulted in the payment of rent due under the Lease, and (c) Landlord has received a copy of a fully-executed rental agreement for rental housing between Tenant and the owner/manager of the related property (a “New Landlord”) (provided, however, in the event that, prior to Tenant vacating the Premises, Tenant requests that Landlord deliver a portion of the Settlement Payment directly to a New Landlord in order to pay sums required as a condition precedent to Tenant and such New Landlord executing such rental agreement, Landlord agrees to instruct Tenant’s Attorney to pay such portion of the Settlement Payment to such New Landlord so long as Landlord has received evidence that such payment is the only condition precedent to Tenant and such New Landlord executing such new rental agreement). In the event that all of the Release Conditions have not occurred prior to the date that is forty-five (45) days after the date of this Agreement, Tenant’s Attorney shall return the Settlement Payment to Landlord.
3. Release of Claims by Tenant. Effective upon Landlord’s confirmation that the Release Conditions have been satisfied (or waived by Landlord), Tenant, and anyone claiming by, through or under Tenant, hereby waives its right to recover from and fully, finally, absolutely, and irrevocably releases Landlord, Marina Terrace I Owner LLC, Brookfield Real Estate Financial Partners, LLC, Brookfield Asset Management Inc., Stellar Management Inc., Stellar California Management Co., and all affiliates, subsidiaries, employees, directors, officers, shareholders, members, partners, representatives, agents, successors and assigns of the foregoing, and all persons, firms, corporations and organizations on their behalf (collectively, the “Landlord Parties”) from any and all claims of any and every character for any cost, loss, liability, damage, expense, demand, action or cause of action arising from or related to the Lease (“Claims”), including, without limitation, any and all Claims that are direct or indirect, contingent or matured, of whatever kind or nature, for or because of any matter or things done, omitted or permitted to be done by any of the Landlord Parties, at law or in equity. This waiver and release includes claims of which Tenant is or may be presently unaware or which Tenant does not presently suspect to exist which, if known by Tenant would materially affect Tenant’s release of the Landlord Parties. Nothing in the foregoing release shall release Landlord from its obligations under this Agreement.
4. Release of Claims by Landlord. Effective upon Landlord’s confirmation that the Release Conditions have been satisfied (or waived by Landlord), Landlord, and anyone claiming by, through or under Landlord, hereby waives its right to recover from and fully, finally, absolutely, and irrevocably releases Tenant from any and all Claims, including, without limitation, any and all Claims that are direct or indirect, contingent or matured, of whatever kind or nature, for or because of any matter or things done, omitted or permitted to be done by any of the Tenant, at law or in equity. This waiver and release includes claims of which Landlord is or may be presently unaware or which Landlord does not presently suspect to exist which, if known by Landlord would materially affect Landlord’s release of Tenant. Nothing in the foregoing release shall release Tenant from her obligations under this Agreement.
5. California Civil Code Section 1542 Waiver. In furtherance of the waivers and releases contained in Sections 3 and 4 above, each party expressly waives any and all rights conferred upon it by the provisions of California Civil Code Section 1542, and expressly consents that this Agreement shall be given full force and effect according to each and all of its express terms and provisions. Section 1542 provides:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

Each party hereby understands and acknowledges the significance and consequences of such release and specific waiver of Section 1542 and has been advised by independent legal counsel concerning the same.
By: ______________

Initials – Tenant
By: ______________

Initials – Landlord

6. Confidentiality. Neither the existence of this Agreement nor any of the provisions thereof shall be disclosed by Tenant or Landlord to any person, except to their respective legal counsel, and except as may be required by law or pursuant to any court order, subpoena or other legal process. Furthermore, Tenant agrees not to verbally, in writing, or otherwise, make any disclosure about, or share, discuss, or comment on, her residency at the Premises, Landlord, any of the Released Parties, the Premises, or the property of which the Premises is a part, to or with any other person (other than her legal representatives), and Landlord agrees not to verbally, in writing, or otherwise, make any disclosure about, or share, discuss, or comment on, Tenant to or with any other person (other than Landlord's legal representatives).
7. Miscellaneous. This Agreement may be executed in counterparts. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement embodies the entire agreement and understanding between Tenant and Landlord, and supersedes all prior or contemporaneous agreements and understandings of such persons, verbal or written, relating to the subject matter hereof and thereof. Any term or provision hereof finally determined by law to be unenforceable or invalid shall not affect any other term or provision hereof. THIS AMENDMENT IS GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA. Time is of the essence as to each term or provision of this Agreement.

REPORT FROM DEC. 17, 2009:

A according to a report in Real Estate Finance & Investment, Brookfield Asset Management has taken over a 3,900 unit apartment portfolio from Steller Management.

Stellar Management acquired the portfolio from Archstone Smith for $952 million in 2007. In addition to One Superior Place in Chicago (pictured right), the portfolio encompasses properties in Los Angeles, Washington, D.C., and New York City.

EMAIL: "Hey Luke, my name is Tony Morris. I ran a fitness program for Stellar for approximately two years. They always payed me late but they payed me, until the last six months. I heard every excuse as to why it was going to take longer and was given one project after another in order to get paid. I was told to keep the program going, not to stop by "Tim Good". My business management team sent invoice after invoice with no response. After six month of not receiving payment I was forced to shut down the fitness program. The fitness program consisted of Yoga, Boot camp, cardio kickboxing etc. Stellar has agreed to pay me $5,000 of the $18,850 they owe me. Why would they not pay what they owe? $5,000 of $18,850… What?… No! Now they won't take my calls, what do I do?"

A tenant writes:

“I am beyond livid at them. Did you know my neighbor had a miscarriage from those fumes (next to Fiji Building)?!

We need a flyer to put out in the elevators in this building warning people about their health. There are about 7 people I know of who are about to be involved in a class action suit against these assholes!!

Do you know much my medical bills are from this?”

Another Tenant:

“It was so great meeting you. I took over a sublease in this "fabulous building in Marina Del Rey" back in February and it has been a nightmare ever since. It has been such an exhausting experience and I really don't have the time, or energy to keep repeating myself over and over with nothing ever being resolved. If I ran my business like this, I would be out of business.

If you could send me everything you have, I would greatly appreciate it. Also, if you'd like someone to help organize a petition, or a resident action committee, I will do what I can. I'm sure your attorney would jump at the chance to make this a class action suit instead of just a 1 person thing.

Thanks for bringing me hope to a hopeless situation.”

Another unhappy tenant:

“I did talk to them about changing units and resigning 3, 6, 12 month leases. However, I am not going to stay here. I am moving back to the Midwest at the end of July. I'm just so relieved I don't need to deal with them or live here anymore!”

Another email:

“hello,

I am curious about the health dept issues here at aqua…we had a huge
encounter with the building manager today and had to ring head office
to complain about him…we have been here since may/june and have
hated it but never really complained much…we are facing the loading
dock and essentially our windows open to the "dog run" where people
dont clean up after their dogs. I suggested they at least have bags
available and a bin…that would help. I am also someone who is
terrified of certain breeds and asked specifics about their
restrictions when moving here from archstone…at archstone there were
two aggressive pits on my floor and I couldn't live with that and here
I move in and discover a few days later that there are pit bulls
galore…one who broke free from its leash and attacked another dog in
the back loading dock, on building premises. The dog still lives here.
It doesnt seem right to me. I hate this place with a passion…today's
incident was the ultimate…I had salvation army here to collect some
bits of furniture I was donating…I thought a nice thing to do..and
as you know there has been an elevator down for three months…well
today the other elevator that leads to the alley also broke so we had
some of the furniture in the lobby…the manager wouldnt let my
partner do this so movers left and my partner was stuff with furniture
in the lobby…the guy wouldnt help him, no solutions, was incredibly
rude…just so depressing to be here…

anyway long rambling story…I just wanted to know what info you had
about the dept of health…”

JULY 7: The Real Deal:

Developer Laurence Gluck is facing a $110 million foreclosure suit at 2 Rector Street from Bank of America, about a year after losing one of his largest tenants at the 27-story office building in the Financial District.

Bank of America, in a July 1 lawsuit filed in New York State Supreme Court, alleges that it called in a default on Gluck in April 2010, after he failed to make required monthly payments at the building, which operates under the name Wall Street Plaza West.

Gluck, in February 2010, notified the lender that he would no longer be able to make his payments, citing the loss of a major tenant in June 2009. The suit did not name the tenant that vacated the building, however Fitch Ratings reported that the tenant leaving the space had 72,000 square feet, or 17 percent of the available space, which matches the description of the city Department of Transportation's office space.

A guest post by Robert from VALoansGuidelines.com:

It’s been all over the news — the first-time homebuyer $8,000 tax credit boosted April’s home sales by 14.8%. The deadline for the credit was April 30, but if you’re in the military and on extended duty overseas, the good news is still coming — the government has extended the tax credit until April 2011. This means that you may still qualify for the credit, which gives you and your family the chance to purchase a home and receive some extra pocket money like you rightly deserve.

To be considered a first-time homebuyer, you or your spouse must not have owned a home within the past three months. However, included in the extension is the $6,500 credit for existing home buyers. In this case, you’re eligible if you have lived in the home for five out of the past eight years and you meet the rest of the requirements.

Here are the requirements you must meet to be eligible for the credit:

* You must have served at least 90 days overseas between January 1, 2009 and April 30, 2010.
* Your individual annual income cannot exceed $125,000, and if you’re married and file jointly, your annual income cannot be more than $225,000.
* The purchase price of the home cannot exceed $800,000.
* The purchase contract must be signed by April 30, 2011 — then you need to close by June 30, 2011.

If you’re worried about qualifying for the program in case of deployment and the need to sell or rent your home, don’t be — a change in the bill does not allow for the IRS to reclaim the credit if this were to happen. An important point to clarify is that the credit is up to $8,000 or 10 percent of the home price (whichever is less).

One more very important thing to mention: as an active duty military member, you can use the tax credit with a loan through the VA Loan Guaranty program. This means that not only will the $8,000 or $6,500 tax credit will help you, but also the many benefits you’ll receive through the VA Home Loan.

The Department of Veterans Affairs does not loan the money; rather they guarantee the loan you will receive from a private lender. Their guaranty ensures the lender that if you were to default on the loan, part of it would be paid back to them.

Benefits of the VA Loan for you, the borrower:

* No down payment required — this is one of the main reasons many military members choose to use the VA Loan as opposed to a conventional loan, where you could put down 5-20 percent.
* No private mortgage insurance (PMI)
* Right to prepay without penalty
* Seller can pay up to 6 percent of the closing costs, which saves you money.
* Requirements aren’t as strict with conventional loans — 8 out of 10 service members could not qualify for a conventional loan.

As with the tax credit, there are certain requirements you must meet in order to qualify for the VA Home Loan. Most men and women in the military are eligible, but here are the general rules:

* If you have served as an active duty member for 181 days during peacetime or 90 days during war time
* If you were in the National Guard or Reserves for a minimum of 6 years
* If your spouse died in the line of duty

If you aren’t sure whether you are eligible, the Department of Veterans Affairs web site has further information.

What's our total tab now in shoring up Fannie Mae and Freddie Mac? About $200 billion?

How much more will we subsidize these losers?

What is so special about home ownership that it deserves all these subsidies? I rent. I'm a blogger. I'll never own a home. I'll never get unemployment insurance. In bailout nation, there's no bailout for the humble blogger.

Alan Zibel writes: WASHINGTON (AP) — Freddie Mac is asking for $10.6 billion in additional federal aid after posting a big loss in the first three months of the year. It's another sign that the taxpayer bill for stabilizing the housing market will keep mounting.

The McLean, Va.-based mortgage finance company has been effectively owned by the government after nearly collapsing in September 2008. The new request will bring the total tab for rescuing Freddie Mac to $61.3 billion.

But the company's CEO Charles Haldeman said, "We are seeing some signs of stabilization in the housing market, including house prices and sales in some key geographic areas."

So will the private market step up? Many builders are.

The LAT says: "Free options and upgrades, help with closing costs or even cash may be used to attract home buyers in an effort to keep the sales momentum going."

I think that government will eventually run out of money and have to rein in its interventions into the housing market. Prices will plummet. New buyers will enter the market. Many people who've been renting will decide to buy. The free market will find its level.

The LAT says:

In the new-home sector, builders are likely to dangle free options and upgrades, help with closing costs or perhaps even cash in an effort to keep the sales momentum going into the heart of the spring and summer home-buying seasons.

The goodies may not be as great in the resale market, if only because anxious sellers have probably already cut their asking prices to the bone. But sellers might be persuaded to chip in on closing costs or pay for a home inspection. And local jurisdictions or utilities may offer tax breaks of their own.

It's doubtful that builder incentives will be as prevalent in the new-home market as they were in December 2008, at the height of the housing meltdown. But giveaways are almost always available, even when the market is smoldering.

The left-wing Obama administration and the left-wing Gordon Brown administration in the United Kingdom are using the Wall Street investment firm Goldman Sachs as a football. It looks like they are having fun kicking it around and these leftists are hoping that they can stoke populist outrage to improve their sinking political fortunes.

The AP reports:

Brown, currently facing a tough re-election battle, seemed additionally angry at Goldman Sachs' plan to pay 3.5 billion pounds ($5.4 billion) in bonuses as reported in British newspapers.

"I am shocked at this moral bankruptcy," he said on BBC TV. "This is probably one of the worst cases that we have seen."

Brown called for a "new global constitution for the banking system" that would, among other things, ban bonus packages like the ones planned by Goldman Sachs.

The U.S. charges against Goldman Sachs relate to a complex investment tied to the performance of pools of risky mortgages. In a complaint filed Friday, the Securities and Exchange Commission alleged that Goldman marketed the package to investors without disclosing that the pools were picked by another client, a prominent hedge fund that wanted to bet the U.S. housing bubble would burst. Within months, most of the mortgages had been downgraded as the U.S. housing boom went into reverse and the securities fell sharply in value.

LUKE SAYS: While Goldman Sachs must battle with the government's civil fraud charges, it must also fight to retain client confidence.

Goldman Sachs has been the most successful of the investment banks in dealing with the credit crunch and recession of 2007-2009. Now Obama is using this case to rebuilt the Democrats political fortunes.

The AP reports:

The Securities and Exchange Commission's bombshell civil fraud charge against Goldman has tarnished the Wall Street bank's already bruised image, analysts say. It could also hurt its ability to do business in an industry based largely on trust.

Damage from the case could hit other big banks as well. The SEC charges are expected to help the Obama administration as it seeks to more tightly police lucrative investment banking activities.

Goldman has denied the SEC's allegation that it sold risky mortgage investments without telling buyers that the securities were crafted in part by a billionaire hedge fund manager who was betting on them to fail. A 31-year-old Goldman employee is also accused in the civil suit that was announced Friday.

From: Frank Walker
Date: April 14, 2010

…Prosper California is the tax-exempt political organization I founded to advance the LVT [land value tax] initiative I drafted.

Although one person can draft an initiative to revamp California's system of raising public revenue, a successful petition drive to qualify such an initiative requires (a) thousands of volunteer signature gatherers, or (b) at least $3 million in order to hire paid signature gatherers, or (c) some combination of (a) and (b). I have not been successful in obtaining this level of support to run a statewide petition campaign as necessary to gather nearly 700,000 signatures of registered voters in the short window of time available after the title and summary was released by the Secretary of State's office.

Although the proponent(s) of an initiative have 150 days from the date of release of title & summary in order to obtain the required signatures, those signatures must be submitted to county registrars for verification no later than April 16, 2010 in order to qualify for the Nov. 2010 ballot. If submitted thereafter, the initiative could qualify for the June, 2012 ballot but not for the Nov. 2010 ballot. Thus, I effectively had only 4 months in which to gather the required number of signatures to qualify for the Nov. 2010 ballot. Also, to allow for invalid signatures, we will need to gather at least 800,000 signatures, or 200,000 signatures a month during a four month period, to be reasonably assured of qualifying an initiative to amend the California constitution.

While it is possible to gather 800,000 signatures in four months with a combination of ample financial backing (PG&E has put up $17 million to support its special interest initiative to make it more difficult for public utility districts to be formed in California and Mercury Insurance has put up more millions to qualify its initiative) and/or an organization of thousands of dedicated volunteers, it is extremely difficult to both secure such support AND gather 800,000 signatures in four months time.

In the absence of significant financial support and a dedicated state-wide organization of signature gatherers, it is difficult to motivate a few dozen signature gatherers to spend day after day of their time gathering signatures when it is apparent that the rate of signature gathering is far, far short of 200,000 a month.

For this reason, I have suspended efforts to qualify for the Nov. 2010 ballot and am now focusing on qualifying for the ballot in 2012. This will involve simply changing dates in the original initiative and then resubmitting to the Secretary of State's office along with another $200 filing fee.

However, I do not plan on resubmitting until such time as an organization & support is in place to make possible a very vigorous petition drive in California's most populous counties, particularly from San Diego County to Los Angeles County in Southern California and the Bay Area counties in Northern California.

Other reform organizations hoping to qualify voter initiatives for the Nov. 2010 ballot have suspended their efforts for similar reasons…

My favorite author once wrote that "When there is correct thought, then there will be correct action" — or words to similar effect. Unfortunately, at the present time there is very little correct thought. But I remain hopeful for the future.

Also see Prosper California's website and Facebook page and previous articles here and here.