Money Changers, Money Lenders, Money Manipulators the evil that is.

Sovereign Bank, you spin me right round baby, right round baby in a circle, circle.

I received notice from one of my mortgage lenders, Sovereign Bank that I’m facing an escrow shortage of $106 ; the notice from Sovereign, they want to collect nearly $500 as a “cushion.” That doesn’t seem to be very fair does it? I thought that a $200 cushion is fair, so I called them.

The first lady, we’ll call her Amanda because I didn’t get her name, stated, that per RESPA requirements, Sovereign Bank HAD to collect that much money from me…the $500. When I informed her there was no such requirement and in fact RESPA (Real Estate Settlement Procedure Act) allowed UP TO 1/6 of an anticipated shortage to be collected, she hung up on me. I was completely rational with Amanda; I asked to renegotiate the amount of MY money which Sovereign Bank wants to hold in escrow or trust. Amanda said that Sovereign Bank “Can’t renegotiate amounts held in escrow.” Click.

So after I was hung up on, I called back. I imagine Amanda thought that I’d give up. The first person I reached after working through the maze of pin numbers, social security numbers and options for a second time was Nicki Gonzales. Nicki was very nice but had the same song as Amanda, I asked Nicki to bump me up the line. Nicki sent me to her supervisor Maribel Garcia, Maribel was nice too. Maribel went over the fact that I’d signed documents authorizing two month’s cushion in my escrow account. I did point out to Maribel that this wasn’t true and to bump me up the line to Tracy the call center manager.

Tracy was nice too and very direct. Her first words to me were that Sovereign Bank is allowed to keep a cushion in escrow under RESPA guidelines and that’s what they do. I related that I understood that, but I didn’t want that much of MY money held by Sovereign Bank earning them interest and not me. I proposed half of the some odd $500 amount. I stated that I thought that was a fair amount for Sovereign Bank to hold as a cushion. I also pointed out to Tracy that her employees were telling clients that the consumers had signed loan documents authorizing the two month cushion. Tracy conceded that this fact was untrue especially when I cited the specific paragraph in my deed of trust (mortgage) which spoke to escrow accounts. The actual language simply says the lender may collect escrow amounts to cover costs. Nil, nada, zero, zip about cushions and buffers. So essentially the bank’s employees….lied, fibbed or stretched the truth or they didn’t know any better or the bank didn’t tell them any better. Either way what they are saying and doing is wrong, unethical and dishonest. Tracy finally conceded that it wasn’t a matter of “can’t” change the rule, it is a matter of “WON’T” change the rule. So up the line I went to Greg.

Greg is Tracy’s supervisor; he sounded nice enough but had that kind of banker dry as toast sound to his voice. He didn’t want to be on the phone either. I imagined someone very comfortable with spreadsheets and not people. Greg’s bend on the situation was from a “compliance” standpoint. Greg’s stance was that if they, Sovereign Bank, changed the rules for me they’d have to change them for everyone. I nicely pointed out to Greg that banks change the rules all of the time. He didn’t understand. So I put it to him this way; folks who have a lot of money earn higher interest rates than those who don’t, folks who have higher credit scores pay less interest than those who don’t so it is well within Sovereign Bank’s power to adjust the amount held in escrow if they care to do so. Alas poor Greg didn’t have much to say about that. By this point I had about enough of the run around.

I asked if Greg would bump me up the line, he would but told me I’d be told the same no, no matter how high I went. So, still with a civil tone; I imparted to Greg at Sovereign Bank that his institution had most likely benefited from a whole bunch of TARP (Troubled Asset Relief Program) money and that the next time banks needed a bail out, I’d remember this failure that I’d had speaking with and doing business with Sovereign Bank.

Want a no nonsense deal on a loan or a home in the Triangle, call me, 919-608-2372.
I specialize on all forms of residential real estate including rentals. TeamMichaelSullivan.com or RentDurhamNC.com

The Heral Sun- What will $17k Get you in Durham?

For those of you who follow Durham Planning, this is an interesting one. Get to the end of the story and see, if you want to build an apartment complex in the Bull City, you may be "asked" to cough up an additional $17,000 in "cash donation" to the Durham Public Schools in order to do so. Oh the kindness and generosity of developers.

The Herald-Sun - City approves three rezoning plans

Maelstrom in Real Estate

Maybe the maelstrom in real estate is starting to wear itself out and wind down. I sure hope so and I’ll bet many of my seller clients feel the same way. In an article dated today, Monica Chen with the “Durham Herald Sun,” writes on Durham County North Carolina foreclosures.

According to the NC Administrate Office of the courts; Durham County had 446 foreclosure starts from June through August 2010. This is down from 508 for the summer of 2009. Still the news is not rosy, 446 is a lot of foreclosed home and a lot of people moving from ownership into leasehold. Although Durham’s unemployment rate of 7.6 percent is below the sate wide level of 9.7 percent, there are still a lot of unemployed and underemployed people in our market.

The Herald Sun article further asserts from sources with the Mortgage Foreclosure Defense Project for Legal Aid of North Carolina that current sub-prime lending practices are affecting current foreclosure rates. HUH???? The Herald Sun article points to statistics that are four years old and two years old, kind of destroying the article’s credibility….these are not current lending practices; let’s call them…dated. The Herald does state that there has been a drop in sub-prime lending practices, this is true; there has been a drop in ALL lending practices from all banks.

So, with foreclosure rates starting to decline perhaps we’ll see a market return to stable real estate market.

A Passion For Real Estate and More

Passion Is Important

Day to day I have the joy of meeting and working with so many wonderful people. I have countless clients and agents who have become some of my closest friends. I am amazed that folks can go from making a call to me expressing interest in a particular home, to actively seeking and buying a home to becoming dear friends. The experience is so very personal for me as a REALTOR. You see, I see it this way; I am helping people find their place and we all need a place.

My commission is to help people find a place to call their own. A place where they will be safe from whatever the world might be throwing at them. A place where they can lay their head at night, raise their children, love, eat, grieve for their losses, celebrate victories and milestones or just be. I innately understand all of those feelings wrapped up in finding a place called…home. I understand the importance of those feelings involved with identifying that warm soft snug harbor and the fact that home, means many different things to different people.

I’ve often said, “Every fanny has a seat,” and I meant it.

Sure mansions are terrific but so are subdivision homes, condos, townhomes and trailers. As varied as we are as human beings, as diverse as our tastes in clothing, so are our desires for housing. No matter what a client is seeking I’m there to help ensure that their home is the best possible choice for them. I love guiding people through the process and sharing with them what I know after 17 years of doing this. Sometimes, I surprise myself with what I know and more importantly what I DON’T know. The key with not knowing is having the strength to say, “I don’t know but I will find out.”

How awful it would be to tell a client something not true or unfounded when it involves that person trying to find a place called home, what a sour taste that would set in a mouth. You see I believe that many in my industry don’t think about the implications of what they are doing for their clients. It’s summed up in that last statement; what they are doing FOR…their clients. Being a REALTOR is not about commission, it is about service, it is about taking care of people first and then the money, the livelihood will take care of itself and will come in countless and unexpected joy.

Wynterfield Dream Home

Michael Sullivan | MLSullivanDev.Corp | (919) 416-2254 1402 Holly Grove Way, Durham, NC Next to RTP 2BR/2+1BA Townhouse $1,085/month Bedrooms 2 Bathrooms 2 full, 1 partial Sq Footage 1,540 Parking 2 dedicated Pet Policy No pets Deposit $1,085 DESCRIPTION Light and bright end unit townhome just minutes to RTP, NCCU, Duke and UNC. Quiet location. Great space with living room, dining room, family room, two and a half baths and two bedrooms. Appliances stay with this home. Available November 1st or there abouts. see additional photos below RENTAL FEATURES - Air conditioning - Central heat - Fireplace - High/Vaulted ceiling - Walk-in closet - Dining room - Breakfast nook - Dishwasher - Refrigerator - Stove/Oven - Microwave - Washer - Dryer COMMUNITY FEATURES - Garage parking LEASE TERMS One year or more. ADDITIONAL PHOTOS Photo 1 Contact info: Michael Sullivan MLSullivanDev.Corp (919) 416-2254 Equal Opportunity Housing Posted: Sep 15, 2010, 10:03am PDT

Real Estate a Real Bumpy Ride

Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors®.
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.
Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
NAR website August 24, 2010


Yikes! Wow! What does this mean, a double dip real estate recession, a real estate depression, the end of the world? (That was a joke, relax) NAR is powerful but not THAT powerful, yet. So let me chime in with my two cents. Double dip real estate recession, no; real estate depression; maybe; here’s my thinking. The positive outcomes in the real estate market last year were as a result of stimulus in the form of tax credits to first time home buyers and move up home buyers. Employment is still a huge Albatross around the neck of the economy. According to LocalTechWire as of August 23, 2010, North Carolina’s unemployment rate is a real 17.8% not 9.8% as reported by the State’s Employment Security Commission. With numbers like that there was NO recovery in real estate in 2008 and 2009. My telephone can bear up those facts too, it ain’t a ringing much.

My take, not a double dip real estate recession but rather a prolonged real estate recession or worse yet a real estate depression, but is this all bad? Well it is bad yes, but needed? Yes also. Here’s my reasoning. Like it or not, the cold hard reality is that our homes, for many of us that is, were NEVER worth what we paid for them or borrowed against them. Mind you this isn’t all homes, just a lot of them. The speculative markets, local markets like inside the Beltline condos, Chapel Hill homes, parts of Durham and new construction ACROSS THE BOARD, were highly inflated and had been so for a very long time. I dare say ten to twelve years or so.

In reality the $345,000 home in Cary, asking price, that I helped a client write an offer on this week, was never worth $345,000 that the sellers are asking today. Truly I think, that when they purchased this home twelve years ago, it wasn’t worth the $247,500 that they paid for it. I think that the home was most likely worth $225,000 when brand new, but because it was new they paid an inflated premium. Although it is a nice home, it is not of the highest quality, there is no real plywood and the home is going to need some significant work soon.

An easy over supply of inexpensive money artificially inflated the demand for housing and that artificial demand, born up by risky borrowers and Wall Street and crooks, created a fast growing bubble that is still in the process of deflating. With 8% of the active real estate inventory in Durham County being foreclosed and most likely an additional 8% to 10% being otherwise distressed or short sale, this coupled with a much smaller supply of QUALIFIED buyers and difficult banking regulations makes for a very sick housing industry. Is it terminal, no, but once recovered an industry that will never be what it once was in the heady to good to be true days of 2002, 2003, 2004 and 2005. So...hang on it’s gonna be a bumpy ride.

Estate planning probate vs. no probate

Estate planning probate vs. no probate

Ok children, draw near and listen. First, I am not an attorney and I am not giving legal advice. I am speaking friend to friend.

Ten years ago I lost my partner. We “planned” for both of our inevitables…or so we thought. We went halfway I learned this week. We had Wills drawn we had Durable Powers of Attorney drawn; we had Advance Directives aka Living Wills drawn, we had Health Care Powers of Attorney drawn and all of those legal documents worked as they should have.

Oh, if we had known to take it just a step further. This week I attended a conference given by www.estateplanningforpartners.com">Jeffrey Marsocci Esq. This conference was so enlightening whether you are married, partnered or whatever. Get with it, contact this guy and start protecting yourself today. Here’s a little low down on some of the myths that WE operate under:
• Wills provide for the management of our estates, NO! Wills tell the courts how to handle our estates. Even with a Will, in North Carolina and presumably elsewhere our estates travel through probate…THE COURT SYSTEM.
o There is a terrible loss of privacy
o There is a terrible waste of time and money…it took the estate of Elvis Presley nearly 12 years to work through probate.
• Probate takes the assets of the deceased and distributes those assets to beneficiaries.
• If nothing remains titled (owned) in the name of the deceased, then there is NO need for probate.

Here’s what most of us don’t know, PROBATE IS EXPENSIVE.

So, here is how Jeffrey Marsocci Esq. can help. This smart lawyer has built part of his career helping folks avoid probate. He helps married and unmarried folks, partnered or not to create revocable trusts. So please whether you’re are single, married, partnered or not, call this man, set an appointment and protect yourselves.

The information here comes from “Estate Planning,” by Jeffrey Marsocci Esq.
Mr. Marsocci’s telephone number is 919-844-7993

Michael L. Sullivan is a full service real estate professional and REALTOR serving central North Carolina. For all of your real estate needs visit Michael's web sites,
RentDurhamNC.com or TeamMichaelSullivan.com

2011 North Carolina Offer To Purchase & Contract

Finally the new North Carolina offer to purchase and contract a la 2011 version for residential real estate is out for preview. Hold tight though, it’s not out for use just yet; a bit of a teaser preview. Truly I have been giddy with anticipation and I can’t wait to use it. Oh if we could use it today that would be wonderful.

Stunningly and startlingly alternative one and alternative two are GONE, blown away by the tides of change, a bad idea whose time has come and whose time has sunk into the vestiges of time. Very few of us ever used alternative two, which for a few more months; is a buyer’s option contract. Buyer still has the option of alternative one, the typical real estate deal with earnest money, investigation, re-negotiation of deficiencies and inevitable squabbles over earnest money with sellers when repairs cannot be agreed upon. Or they can still choose the alternative two stepchild; this alternative allows the buyer to put down both earnest money and option money, option dollars are paid right to the seller and if for ANY reason or NO reason by the end of the option period the buyer doesn’t buy the house, then the seller keeps the option money and everyone walks away no foul. Please insert sarcasm (here!) Folks still squabble and squawk over earnest money.

Well at least let’s hope that’s the case. I was listing agent on a property here in Durham on Camden Ave. and an agent with a company whose logo is a blue rock, brought a buyer and we agreed to an alternative two contract. The option time came and went with a flurry of inspections, investigations, repair requests, negotiations and agreements, etc. etc. etc. Then a somewhat lengthy delay to closing and here’s where we hit ballyhoo. The closing attorney a Mr. Booger (name slightly modified) out of Chapel Hill, well after the option period, for ANY and ALL investigations, where the buyer for ANY or NO reason whatever may terminate and walk away from the contract; decides that late in the game that he was going to order survey, title work etc. to whit he discovers that the subject property’s fence is partially on the neighbor’s yard, just a few inches and in this day and age, easily ignored by everyone. Not that I think this ignorance is a good idea; but it is what we do on the caveat that if in the future the neighbors say move the fence…well then the new owners will move the fence.

Well the good attorney Booger starts to make waves. He even goes so far to say that he doesn’t care what the contract says, that if the seller wants to sell then the fence must be moved. He’s always done his title work late in the game and this is just the way it is. Well so much for an officer of the court upholding the letter of the contract and the law. He was so terrible, so awful and so was the big, blue rock agent; that we on the seller’s side took the fence down so that the property would close, that opened a whole new can of worms; but tough noogies to the buyer, their beef was with THEIR attorney and AGENT. So, I digressed didn’t I? Ah yes the new offer to purchase and contract.

Gone are the days of house systems and structures “functioning the purpose for which intended and not in need of immediate repair.” The buyer now has a “due diligence” period to investigate the property and during that period, for ANY reason or NO reason may terminate the contract and the seller may keep the due diligence fee; take note Mr. Chapel Hill attorney, this includes surveys too. There can still be earnest money, but this needn’t be the case; there can be due diligence money, but this also needn’t be the case. GONE is any discussion about specific systems and inspection. Essentially the process is made easier, buyer comes alone, buyer offers, buyer writes a due diligence check to the seller, buyer prescribes a diligence period and investigates. Buyer may make a repair request but seller doesn’t even need to respond and if buyer isn’t happy with that then they may terminate the contract; but it is gonna cost them the diligence fee; if they move ahead and close, they get a credit for the fee.

So as always the devil is in the details, as a listing agent I am going to push my seller clients to accept just a diligence fee and NO earnest money and this way if the buyer terminates everyone walks away. I love it; gone will be the days of a buyer agent just throwing it all against the wall, of low balling, of recommending inept inspectors who will scuttle a deal. In reality I see all parties getting very serious when a home is under contract. Hopefully the days of willie, nillie walking away from a binding contract are numbered; of course we’re always going to have to deal with the odd ball attorney who doesn’t believe in following the written contract…but hopefully they too will become fewer and further between.

Want to learn more...call or text me 919-608-2372
Email me MSullivan@fmrealty.com
Visit my web site TeamMichaelSullivan.com

Red shoes...red home...find it...buy it...

Red Shoes….
You need a pair of red shoes to go with that outfit. You go to the mall, you go to your favorite store, you find a pair of red shoes. You try them on, they fit perfectly. They sparkle, they shine, they are brilliant. The price is right, the fit like butter to your feet. Do you buy them, no of course not, you go to every other store in the mall looking for a better shoe and then ultimately come back to the first pair hoping that they are still there.
This is not the way to buy a home, in this market or any market. National news media has been howling for months that it is a buyer’s real estate market. Well that is and isn’t true. It might be a buyer’s market in Nevada where one in fifty four homes is in foreclosure. Here in Raleigh/Durham that is not the case and if one is looking for a home outside a mc subdivision it is difficult to find the right home, at the right fit and at the right price. My advice to buyers, once you have found the right fit….buy it or it may not be around tomorrow.

707 Beckett Street Durham NC 27712

707 Beckett Street Durham NC 27712

Just a short drive north on Guess road, a mere fifteen minutes from downtown Durham you’ll find 707 Beckett Street in Canterbury Estates and serenity now.
This well cared for ranch style home sits on over six tenths of an acre and is nestled behind a stand of trees. Inside is an absolutely huge living room, with vaulted ceiling and a fireplace and a door to a rear deck, which overlooks a fully fenced rear yard.

The kitchen is updated with new 42 inch cabinets and Corian counter tops. The range, refrigerator and microwave oven stay with this home, as does the dishwasher. In addition to the eat-in- kitchen there is a formal dining room.
This home has three nicely sized bedrooms, a master with its own private bath and ample closet space. The bathrooms have been updated too.

You will love the low county taxes and the seller paid home warranty which is offered for buyer peace of mind.

To see 707 Beckett Street, phone or text Michael Sullivan at 919-608-2372 or email MSullivan@fmrealty.com you may also visit Michael on the web at TeamMichaelSullivan.com or TeamMichaelSullivan.net to learn more about his listed properties.

23 Prestwick Place Durham NC 27705

23 Prestwick Place in the Walden Pond neighborhood is just five minutes to Duke University, Duke Hospital and the VA Medical Center. This lovely townhouse is light, bright, open, airy and well kept. It is also very tastefully decorated and will compliment any décor.

On the main level is a modern, full equipped galley kitchen with modern appliances. There is a nifty pass through which could be converted into a breakfast bar if so desired. Beyond the kitchen is a large living room/dining room combination with a wall of windows at the rear and a wood burning masonry fireplace tucked into the corner of the room. The main level also has a half bath which has been nicely updated. At the living room a door leads to a brand new tree top deck.
Down one level is a full laundry space, a ceramic tiled bath and what could be a third bedroom, a family room, a home office, game room or bonus room. This space has a door to a large ground level patio.

The second floor offers two spacious bedrooms, a full ceramic tiled bath and lots of closet space.

23 Prestwick Place Durham NC 27705 is move in ready. A one year H.S.A. Warranty is offered on this property. The roof has been recently replaced as have the front and rear decks. The current owner has also had the Polybuteleyne piping removed from the property.

Interested in seeing inside? Call Michael Sullivan at 919-416-2254 or 919-608-2372 mobile/text or email him at MSullivan@fmrealty.com. You can learn more about Michael’s listings by visiting TeamMichaelSullivan.com