There are many reasons when you are ready to buy, sell or lease a home you should talk to a Real Estate professional. There are different types of Real Estate Agents. It is wise to make sure they are a member of the National Association of Realtors®. Only Real Estate Agents that are a member of the National Association of Realtors® or (NAR) can call themselves a Realtor®. Realtors® adhere to a strict Code of Ethics, know the market and know what to look for. Advice is always free.

I had a client whos home was not selling as quickly as he thought it should. He showed me a card he had received from “Bob” a few years ago (read the Killeen Daily Herald article below). It was a nice bright yellow card, very professional looking. I told him it was a scam. “Bob” is NOT a Realtor®. He is NOT even a Real Estate Agent. He does not have to adhere to a Code of Ethics and ANYONE can have a professional business card printed. My client’s home did sell and everyone was happy.

When thinking real estate….Always call Karen for honest free no obligation advice!
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More residents worry about mortgage fraud Posted on: Sunday, November 16, 2008, 6:19 AM

Jesus Gutierrez, wearing a patterned two-pocketed work shirt, dirt-marked jeans and a Texas flag cap, sat on the edge of a bed in his living room Thursday. Only an old TV and two small couches were in the room. His grandson’s baby swing hung from the entryway.

Gutierrez wrung his hands in the air asking himself what happened to the $7,000 he and his wife saved – he working in construction and her cleaning bedrooms in a local motel. It was a down payment, or option fee, given to Robert “Bob” Alford III of “Bob Buys Houses” in June to rent-to-own a home on the 200 block of East Voelter Avenue in Killeen.

Gutierrez was skeptical and nervous when he and an English-speaking friend met with Alford in June, he said Thursday night through a translator, Herald sportswriter Evan Mohl.

Gutierrez did not understand all of what was in the more than a half dozen pages of contract talk written in English. He signed them anyway because it meant more space for his wife, four children and infant grandson.

“I wanted a bigger house so my family could live more comfortably. And I wanted it to be our own, not somebody else’s. At the time I had my suspicions, but the gringo (Gutierrez’s partner) seemed to trust him. It seemed easy, convenient,” he said.

Now Gutierrez wants to see an attorney. A neighbor showed Gutierrez the Nov. 9 Killeen Daily Herald where several renters and homeowners said Alford wronged them. Gutierrez worries he will be next. Alford said that will not happen to him.

It happened before to Kimberly Thomas in 2007. Thomas, a former Fort Hood soldier, paid Alford $8,000 up-front in 2006 to rent-to-own a home. Thomas said Alford forced her out in 2007 and denied her the option to buy.

She won a $34,068.98 judgment against Alford because he never showed up in court. Alford declined comment except to say an out-of-court agreement was reached. Thomas said no agreement exists and Alford has paid no money.

One of many bad deals

Since the Nov. 9 article in which six people said Alford damaged them in real estate deals, four individuals contacted the Herald saying they were scammed.

Several homeowners said they were anxious to leave the Killeen area – in some instances because they were re-stationed away from Fort Hood or were going through a divorce – so they went to Alford. He was supposed to make mortgage payments until he profited from the home’s sale.

However, the six homeowners involved, said Alford defaulted on payments, damaged their credit and or pushed the home close to foreclosure. Only one person contacted said Alford sold the home.

Three renters said they have completed or are trying to reach separate agreements with the original homeowners. Still they believe Alfred owes them back the down payment. Also, several individuals said it took weeks and months to contact Alford, if they were even able to.

The property Gutierrez rents is not behind on payments. However, learning about what happened to others aggravated Gutierrez’s past anxiety.

“Sometimes, I can’t sleep at night thinking about it. I just want my $7,000 back. I feel like I got robbed,” he said. “My wife and I don’t have anything left. We spent it all on the down payment.”

Gutierrez immigrated from Querétaro, Mexico, to Bonita Springs, Fla., in 1985. He left behind his wife and family. He picked oranges and tomatoes on farms to make a living. Then he worked in a Georgia meat factory. In 1997, he followed a friend to Killeen to be closer to Mexico.

His wife and four children came to the United States three years ago. They lived in a small house on Dean Street, a high-crime area, before moving to East Voelter Avenue.

The business model

Alford said he formulated his business plan from Internet articles and library books in 2006.

He intended to help people buy and sell homes. Homeowners contacted him through a sign posted on streets or a local ad. Alford became trustee to several homes. He agreed to make mortgage payments, manage the homes and profit when he sold them.

Alford said homes became harder to sell soon after his business started. The housing market began to collapse. People were not buying homes. He could not sell the homes he acquired.

Alford fell behind on the mortgage payments for different reasons. He rented the homes in lease-to-own agreements to people, like Gutierrez, whom he expected to be in a position to buy the homes after a year when their credit improved.

He asked for thousands of dollars in option fees, which Alford said went to repair the homes. If they decided to buy, the fee was to be taken from the home’s price.

When subprime loans given to people with bad credit defaulted across the nation, those loans became harder to get. Alford’s renters were not in a position to obtain a loan they were expected to be eligible for after a year of rental payments. Also, other renters stopped paying or moved away, which left him with a mortgage to pay and no income. Then the mortgage companies threatened foreclosure against the homeowners.

Alford said he never intended to defraud anyone.

However, his business model resembles scams documented by the FBI and mortgage lenders in the past. The scam operates by a person agreeing to take on mortgage payments on a property to sell. Instead of selling the property, they rent the property, ask for a large up-front down payment, stop paying the mortgage and leave the homeowner or lenders to clean up the mess.

Alford said the “downfall” of his plan was that the mortgages remained in the homeowner’s names, so he was not responsible when payments were not made.

He said that even though his operation resembles a scam, he is not a scammer.

“The difference between me and them is I’m not running. I’m not filing bankruptcy and I’m still working tirelessly to put the situation to bed and to put people in position to purchase houses,” he said.

Alford anticipates at least $30,000 debt from 2008. He still plans to help the people he has hurt. Alford said he has returned several homes and caught up mortgage payments for several homeowners. However, how much the situation has been resolved depends on which homeowner you ask.

Inconsistencies

Alford originally referred to “Bob Buys Houses” with words such as “we” or “our company” but said he worked alone. However, Alford said Friday he worked alone with the help of silent investors who provided money to paint and re-carpet homes. Alford said parts of the down payments also went to fixing the homes, which is why he does not have the money.

Alford ran his business “Bob Buys Houses” out of an office he rented in a suite along the Central Texas Expressway. Alford said the media attention led to him being unable to operate at that office.

When calling the 800 phone number listed for “Bob Buys Houses,” a recorded message from Alford plays. It says the business is Centex Home Buyers Inc. and prompts the listener to press a number “if you have trouble selling your home or just want a quick cash sell” to speak to a representative. Alford said Centex Home Buyers Inc. is his business. The name is similar to reputable local businesses.

On Gutierrez’s lease, Alford listed himself as an “Officer of the Coyle Group LLC.” Alford initially said the Coyle Group ran out of the same building along the Central Texas Expressway. Alford said later he could not detail what he does for the Coyle Group, other than that he does not own the business and they were based in Nevada. He declined to provide a contact person or owner for the business. The Coyle Group was not found in Killeen or Nevada phone listings during an Internet search, other than a Nevada company that coordinates mystery shopping programs. However, a real estate appraisal company in Pennsylvania goes by the same name. A representative with the company said they had never heard of Alford. A LinkedIn.com profile for Robert Alford of Killeen/Temple area listed Alford as the Coyle Group’s owner with an interest in real estate.

Where to turn?

Special Agent Matthew Gravelle is an experienced fraud investigator in the Austin office of the FBI’s San Antonio Division. During the last five years, mortgage fraud cases have piled up because of the collapsing mortgage market.

Gravelle said he could not comment specifically about Alford’s situation without seeing the documents signed. Although, Gravelle said he has heard of similar situations to what Alford is described as doing, but in other states and not in Austin.

Gravelle said fraud often occurs when people are under financial or time pressure, such as impending foreclosure or needing to move quickly. The pressure makes them blind to a scheme that is probably too good to be true.

“It’s difficult for people to see this because the folks upon whom these scammers prey may not be as sophisticated,” he said.

Gravelle said the FBI typically prosecutes cases where mortgage companies have been defrauded by a group of people. Gravelle said a situation where a federally-insured mortgage company is shorted on mortgage payments could lead to an investigation.

Gravelle urged anyone who feels they have been scammed to contact the FBI.

Texas Attorney General Spokesman Thomas Kelley said anybody who feels they were scammed should file a complaint with the Attorney General’s office.

Seeking a resolution

Several people involved with Alford said they have already or intend to file complaints with the FBI and the Texas Attorney General concerning Alford.

Several renters are considering a small claims lawsuit against Alford.

Gutierrez wants an attorney so he can understand better the contract he signed. He has spent too much money and worked too hard to get this home for his family in America. He wants to protect it.

Contact Victor O’Brien at vobrien@kdhnews.com or (254) 501-7468.

Evan Mohl contributed to this article.

To report a potential scam

Office of the Attorney General, Consumer Protection Division.

Call (800) 621-0508 or (512) 463-2100 or go to www.oag.state.tx.us/consumer/complain.shtml.

FBI Mortgage Fraud Offices, white collar crime supervisor in San Antonio. Call (210) 225-6741.

Texas Office of Consumer Credit in Austin. Call (800) 538-1579 or (512) 936-7600.

Where to get help

Texas Real Estate Commission in Austin, www.trec.state.tx.us/ or (512) 459-6544.

Better Business Bureau Central Texas, 445 Central Texas Expressway No. 1, Harker Heights, TX 76548. Call (254) 699-0694.

Mortgage Fraud Quick Stats

Fraud losses are estimated at between $4 million and $6 million.

31 percent more reports of mortgage fraud were filed in 2007 than 2006.

1,569 pending FBI mortgage fraud investigations as of August 2008.

At least 2.2 million foreclosure filings were reported in the U.S. on 1.29 million properties in 2007, a 75 percent increase from 2006.

Tips from the FBI

Get referrals from real estate and mortgage professionals.

Check licenses with state, county or city agencies.

Beware of strangers and people who contact you.

Be skeptical of loans that promise no down payments.

Never make false statements on loan applications, especially about income or down payments.

Never sign blank documents or documents with blank lines.

Review title histories for properties considering buying.

Source: FBI’s Mortgage Fraud Report, 2007

Pet odors can be a problem when you’re in the process of selling your home. If your house has an odor problem, you should remove any offending furniture or carpets or hire a professional to clean them. Be sure to check the cat box frequently and keep the litter fresh.

Since some people have allergies or fears of certain animals, it’s a good idea to put dogs or cats outside or confine your pets to one area when your house is being shown. It’s hard for buyers to fully appreciate your home through itchy, watery eyes or in between sneezes! Even if the house is exactly what they want, your chances of selling it are less if the scent of Spot lingers in their memory.

Courtesy of the “Real Estate Advisor“

Which former Dallas Cowboys quarterback is now working in Real Estate?

Roger Staubach began selling real estate in 1970, and began his own company in 1977. You can even check him out on www.staubach.com

Courtesy of the “Real Estate Advisor“

Painting
If you’re planning to sell your home in a year or two, a fresh coat of a neutral-toned paint could make the sale easier. A professional exterior paint job may also recoup close to 75% of its cost. Let’s face it - we all like things fresh-looking.
 
Kitchen  
With just a few basic improvements, your kitchen can practically pay you back with interest! New paint, wallpaper and flooring are always appreciated; plus, you might even consider sanding, staining or painting worn-looking cabinets. Replacing old cabinet hardware is a low-cost improvement that makes a big difference in appearance. According to Remodeling magazine, the average spent on major kitchen-remodeling is around $39,000; refinishing an outdated one averaged $15,000. The full kitchen remodeling recouped 80% of its cost, the more moderate remodeling was valued at 87%.

Area Conversions
Generally speaking, increasing the functional space of your home holds its value longer than remodeling just to make a house look better. It’s also much less expensive than adding an addition to your home. Converting attic space into a bedroom, for example, usually costs around $30,000 and returns about 73% of its cost, according to Remodeling magazine. Turning your basement into extra living space costs, on average, $40,000, with a recoup average of about 69% of your costs.
 
Extra Bathroom
You usually can’t go wrong by adding an extra bathroom. At an average cost of $14,200, a new full bath can recoup 81% of its total cost!
 

Deck
Adding a deck is a very cost-efficient way to add square footage to your house. Decks cost around $6,000 and generally recoup 75% of their value. Compared to other outdoor improvements (except painting), that’s an excellent return.
 
New Windows
Your utility bill savings may make up for the iffy resale value, however, a good set of standard windows should get you around 68% back. If you start getting too fancy with custom shapes and sizes, though, don’t expect to get as much in return.
 
Swimming Pool
In a word - don’t! Unless you’re putting it in for you and your family to enjoy, it’s commonly agreed that a swimming pool has no resale value at all. Reason #1? Sure, they sound nice, but pools are very expensive to maintain. Running a close second is the fear of pool accidents - that’s something nobody wants to experience.
 
Picture-Perfect Gardens
Another nicety, but who’s going to spend all that time - and money? If the potential buyer is not horticulturally inclined, chances are your floral handiwork won’t add to the offering price. The same can be said for expensive fences and stone walls - they look nice, but buyers don’t pay up for them.
 
Basic Is Better
It may not sound very exciting, but it’s the basic improvements you make to your home that may have the greatest return on its value: a beautiful new bathroom won’t make up for a leaky roof. So if you’re thinking of selling your house in the next year or so, be sure to address any problems the home may have before you, say, install those sunken gardens you’ve always dreamed of.

Courtesy of the “Real Estate Advisor“

If you’re looking to improve the appearance of your home for resale, or you just want an updated look for your own enjoyment, there are a few things you must consider before beginning any costly project.

Sure, you can spend a lot on something purely for the personal pleasure of having it - like that outdoor Jacuzzi under the attached gazebo - or you can go the practical route and make an improvement that will increase your home’s market value, such as installing energy-efficient air-conditioning or repairing those shabby shingles. Be forewarned, however, and don’t expect to recoup your costs on both counts. Many real-estate brokers agree that just because you put $25,000 worth of improvements into your home doesn’t mean that your house is worth $25,000 more!

Exactly how much of your investment you’ll recoup depends on a number of factors, such as the “big picture” housing market, the value of the homes in your neighborhood, when you plan to sell and the exact nature of the improvement. Also, consider that the longer you live in your home after a project is completed, the less likely you are to recoup its value. Just try to convince a potential buyer that Harvest Gold is cutting edge.

Below are some examples of a few improvements that usually pay off - and some that rarely make a difference (no matter how much you paid for them) when it comes time to sell your home.

Courtesy of the ”Real Estate Advisor“

Staging is something every home seller should know about. It’s preparing your home to appeal to the largest group of home buyers possible. Staged homes sell faster and for more money than comparable homes in the same area.

Clear the clutter - Remove knickknacks, trophies, plaques, family photos, children’s artwork, refrigerator magnets, etc. Make your home look like it doesn’t belong to anyone. This makes it easier for a prospective buyer to come in and see themselves living there.

Color scheme - Repaint rooms with neutral colors. The majority of home buyers want a home they can move into without doing any work until they are ready.

Don’t forget the odors - A house that smells odd to a prospective buyer can be a deal breaker. Odors from dogs, a cat’s litter box or cooking need to be eliminated. Take steps to freshen up by steam-cleaning the carpets, moving litter boxes elsewhere, and, if weather permits, opening the windows for a few minutes to let fresh air in. Be careful about masking odors with air fresheners or potpourri … those can become offensive odors to buyers as well.

Maintenance - Remember that cracked window you never replaced, or the other things you were going to get around to repairing? Well, now’s the time. People like homes that look like they have been well maintained. They want a house that is “move-in ready”!

Listen to your Realtor - Your Realtor knows what buyers are looking for in a new home, and will tell you what you need to do to get the best price possible in today’s market,

Make your home look warm and inviting.

Do you want to buy a house but know that you don’t have very good credit?  If so, don’t assume that all is lost.

Contact a lender to see if you can get pre approved for a mortgage.  You might even try a couple of lenders, since some are more flexible than others.  If you have someone that is willing to co-sign with you, ask if that would help qualify you.

If you are turned down, get into a credit repair program and set a goal to qualify for financing.