Monday, November 29, 2010

Detroit Library Damaged By Water....

When employees arrived for work at the Ferndale Library last Friday morning, they were greeted with water damage in the building’s mezzanine level mechanical room, caused by a plumbing failure.  Fortunately, the library’s books and media material were unharmed, however the Library’s Friends store lost several books.

Library officials say that it is too early to determine what caused the plumbing malfunction, but that a disaster recovery company had arrived to assess the damage and begin clean up operations.

The library had recently reopened following a $4 million renovation.  “That’s what really makes this heartbreaking”, said Patrick Dengate, secretary for the library’s board of directors.

Wednesday, November 24, 2010

No More Water Damage Insurance In Florida?

Homeowners insurance has always been sketchy when it comes to water damage, and now things are about to get even more discouraging.  Florida based firm Tutwiler & Associates is cautioning Florida homeowners that their water damage problems may not be covered, if the damage occurred more than two weeks prior to filing the claim.

For residents who maintain winter homes in Florida, this could come as an unexpected surprise when they return to their residences after lengthy absences and discover any kind of burst pipe or leaking appliance.

Read more about water cleanup in Florida….

Tuesday, November 23, 2010

Dallas Man Sues Restaurant Over Flooding...

Jim McDaniel of Dallas is suing a local restaurant, claiming they were responsible for flooding in his home.
Mr. McDaniel claimed he was told by a city crew that the restaurant’s grease trap had backed up the nearby sewer lines, causing a massive back up that flooded his home two years ago.

The Mexican restaurant accused of causing the flooding has denied his claim of $8500 in damages.

Water Cleanup At Wally World

While water damage doesn’t always equal fire damage, fire damage does usually produce water damage, as evidenced this week by a fire that broke out at the Wal-Mart in Tawas City.  An employee reported a fire inside the store at around 6:45PM on Saturday.  Employees and shoppers were evacuated and the fire suppression system was activated.

While the building did not suffer any major structural damage, there was extensive smoke and water damage throughout the building.


Monday, November 22, 2010

Fire And Water Damage In San Rafael

Water damage doesn’t have to be the initial problem to cause severe damage.  A newly reopened nightclub In San Rafael was forced to close “until further notice” after a fire in the kitchen caused a water pipe to burst, putting out the flames but causing extensive water damage.

That is exactly what happened at Georgre’s Nightclub, a landmark establishment in San Rafeal’s Fourth Street area.    Club owner Todd Ghanizadeh said the fire was bad enough, and it was a good thing the pipe burst.  It extinguished the fire before additional damage could be done.

Still though, he is left with damages that may total between $10,000 and $60,000, including contents.

The Power Of Mold....

Since I’ve been in this business, I’ve been blogging and talking incessantly about the potential damage that is possible when water damage goes untreated for too long.  Nowhere was that better proven than in Chatham VA recently, when the Moses Building (housing about 50 Sheriff’s Dept. employees) was shut down due to mold problems, the result of water leaks and flooding in the building’s basement.

The mold levels were so high that evacuations were ordered out of concern for the employees’ health, and it may be five months before employees will be able to return to their offices.

Friday, November 12, 2010

Gettin' The Short End (Vol. II)

-       Last time we looked at the good things that can come out of the short sale of your home.  Of course, for every action there is an equal and opposite reaction, so we will now look at the not so pleasant results.  They are:

      While a short sale is less damaging to your credit than a foreclosure, the operative word is “less”.  There will still be some damage to your credit rating, and the chances of getting another mortgage right away will be slim at best.

-          You may still be required to pay taxes on the remaining debt owed.  The IRS treats the forgiven debt as taxable income.
 
-          The lender does not have to agree to a short sale.  They may very well insist on payment in full.

-          You will have to provide proof that you are no longer in a position to make your mortgage payment.  If you have indulged in foolish actions such as simply living beyond your means, it is highly unlikely that the lender will agree to a short sale.  Legitimate hardships, such as divorce, extended illness, or job loss are usually accepted as valid.

-          Despite its name, a short sale is anything but short.  It is a long and involved process requiring all the right paperwork, documentation, as well as speed of the lender in expediting the process.  Lenders are not known for being enthusiastic participants in short sales.

-          Once the lender approves the short sale, it is still dependent on a good offer from a good buyer (i.e. a buyer that can actually get approved).  Real estate agents may get smaller commissions on short sales, reducing their enthusiasm for your situation.

-          The bank may still pursue a repayment of the forgiven debt.  Never assume.

Basically, while short sales may seem like a way out from foreclosure, it is important to remember that there are still negative effects to the process, no guarantee that the lender will agree to it, a considerable hit to your credit score, etc.  However it is a viable alternative to a foreclosure.

Before making any decision on a short sale, contact a real estate professional with a successful record in short term sales.     

Gettin' The Short End (Vol. I)

There is no question that the current economy has left the real estate market in a state of chaos.  While home ownership used to be a major part of the American dream, over the last two or three years it has more closely come to resemble an albatross around the necks of many folks.  Home prices have continued to sink, leaving homeowners in a lurch, owing far more on their houses than they are currently being appraised for.   The end result is a dream for those looking to buy a home (you can pick one up for the proverbial song), but disastrous for anyone looking or needing to get out of their home.

In the industry, “upside down” is the phrase used to describe any scenario where you owe more on your home or vehicle than it is worth.  If you have lost your job, or if other circumstances have arisen that make it impossible for you to continue making payments on your house, the usual end result is foreclosure, the bank taking possession of the home and evicting the occupants.

The obvious solution in such cases would be to sell your home.  However, with the glut of homes currently on the market, that is not as easy as it sounds.  The real estate world is replete with stories of people who put their homes on the market only to watch them sit…..and sit….and sit….for months at a time without so much as a nibble.

The other solution is a “short sale”, where the home or property is sold for less than the balance due on the mortgage.   The lender takes a loss, but not as severe a loss as they would had they foreclosed.   Obviously, this does get you out from under a home that you can no longer afford, but is it the best option?

You should always consult a professional real estate advisor before making such a decision.  Here are a few of the good and bad points to consider:

The Good:         
      It eliminates the possibility of foreclosure.  Foreclosure is a time consuming and stressful process on all involved, sometimes taking up to ten to twelve months to complete.
-         
      Unlike foreclosure, which takes the situation out of the homeowner’s control, a short sale allows you to retain some measure of control over the process.  If you can find a buyer and negotiate terms with a bank, the negative impact on your credit score may be reduced.
-         
      While short sales do affect your credit standing, it does not do so as badly as if you had been foreclosed upon.  Less damage to your credit means you can potentially get back into another house sooner rather than later.
-         
      Large monthly mortgage payments will be eliminated, giving you the adding funds every month to get back on your financial footing.
-         
      There is always the possibility that the lender may forgive the difference between what you owe and the final price.  Obviously this is not guaranteed, but it is an agreeable outcome if offered.
-         
      You will be able to re-qualify for a loan much more quickly than if you had been foreclosed on, due to the less severe impact on your credit score.
-         
      If you are not able to make your payments or work out an acceptable agreement with your lender for a lower payment, a short sale may be the last best option, even if it does mean losing your home and initial investment.

Next time we'll look at the not so pleasant ramifications of the short sale.

Wednesday, November 10, 2010

From The "It Seemed Like A Good Idea At The Time" Dept.....

In Fairbanks, Alaska, the weatherproofing of homes is nothing new.  It is designed to protect structures from the fantastically cruel elements that go hand in hand with living in that particular state.  Unfortunately, this highly recommended procedure has recently come under fire for causing a whole new problem……mold.

We all know mold as the crazy first cousin to water damage, establishing within 48 hours following a water problem, spreading like a bad rash, and creating all manner of health problems, some of which can be, shall we say, undesirable.

Now, however, building experts in Fairbanks are saying the mold problems are the result of weatherproofing jobs being done too well.  People are sealing their homes against the elements, but neglecting to properly ventilate.  Lack of air circulation is another, less notorious cause of mold growth.

So water damage or lack of ventilation, you say “tomato” I say “to-mah-to”, the end result is the same.  There has to be some measure of give and take.  By all means, take steps to protect your home against the elements, but don’t go so overboard that you end up with an unwanted buildup of moisture and humidity.  Next thing you know, you have a growth that looks like a refugee from a Grade Z horror flick setting up residence in your basement.

The good news in any case is that you don’t have to spend a ton of money to test for mold in your home.  Mold is instantly recognizable due to its appearance and smell.  If you suspect you have mold, chances are you do.  There’ll be no mistaking it.

However it makes its appearance, don’t take chances with your health or the health of your family.  Wear a filtration mask, or better yet a respirator, to prevent inhalation of mold spores.   I don’t care how silly it looks, this is a health thing.   Pack up the family and get out of Dodge for a while, at least until you can contact a professional mold remediation specialist who can come to your home and get rid of it.

Things That Go Without Saying - Winterizing Your Pipes

Weather forecasters keep telling us that winter is just around the corner.  With the past week seeing more than one day in the 30’s, accompanied by sleet and snow flurries, I think we can pretty much assume that winter has already arrived.  That had to be one of the fastest fall seasons in recent memory.

It also goes without saying that winter can really do a number on a home, causing pipes to freeze and burst, the end result being flood conditions and water damage to your home (it always comes back to water damage with me doesn’t it?).

-       Make sure pipes are insulated.  They may lack insulating wrap or they may pass through areas of your structure where they are unprotected from the elements.  Wrap them up with pre-molded foam rubber sleeves or fiberglass insulation.

You should likewise wrap your hot water heater in insulation.  Water heating accounts for roughly 15% of the average home energy bill, and you’ll be surprised at home much heat loss is prevented by a simple fiberglass wrap.

You also want to keep your water temperature around 120 degrees, and utilize low-flow shower heads to reduce the amount of hot water you use.   This can knock off water heating costs by 6 to 10 percent.

Make sure your hose bibs are shut off at the valve, and drain the lines as much as possible.

Check gutters and downspouts for any obstructions that could cause water to back up and freeze.  Such a problem could cause water to drain off in all the wrong directions.

And if you choose to ignore this advice (which more than 90% of you will), I wish you nothing but happy home repairs….