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CONTENTS
Let ter from the Editor Letter from the Editor
Departments 4
Market Report Buying a Foreclosed Property
8
Emily L.G. Untalan
10
Feature Foreclosure for First Timers
12
Real Estate Spotlight What do Title and Escrow Companies Do?
14
Profile Narciso Cosico
April 2017 • Vol. 10 • No. 04 P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 Email: office@yellowpagesink.com
[ Publisher ] [ Business Sales Manager ] Jay-R S. Dominguez
[ Editor/Display Advertising ] 16
From the Experts Buying a Foreclosed Property; Are you Ready to Take the Plunge?
Emily L.G. Untalan
[ Traffic/Circulation ] Shaun Cruz
[ Production Manager ] Mark S. Burke
18
How to D.I.Y. Soda Bottle Torches
19
Your World, Our Island Is the Foreclosed Property Environmentally Compliant?
22
Curb Appeal Cheap Curb Appeal Tricks
25
Who Ya Gonna Call?
28
Closing
[ Graphics & Layout ] Mark S. Burke Edwin E. Valencia
[ Website Development ] Edwin E. Valencia
[ Editorial Contributors ] Jennifer Geddes Anthony Godwin Eric Palacios Nancy@ourpeacfulplantet.com Trini Sarmiento Emily L.G. Untalan Kim Anderson Young Cover Photo: Mark S. Burke
Buenas and Hafa Adai, Guam! April is here and besides the showers, it also brings Spring Break, Holy Week, Easter, NationalAdministrative Professionals Day, Earth Day and Arbor Day! Take the time to celebrate, meditate and appreciate what you have including this beautiful island we live in. This month’s theme is Buying Foreclosed Property. We have a wealth of information to share with you from contributing writers, giving their perspective and knowledge on the topic. Mr. Godwin brings us the MARKET REPORT stats and includes the challenges that foreclosures bring. First Hawaiian Bank provides Finance Tips on that fixer-upper you’re about to purchase. In our FEATURE, titled Foreclosure for First Timers, I share how a friend’s unfortunate situation ignited my interest on foreclosures. Kim Young explains what title and escrow companies do in REAL ESTATE SPOTLIGHT. Our PROFILE is Narciso Cosico, a REALTOR® and easy-going guy who enjoys experimenting in the kitchen. FROM THE EXPERTS, Trini Sarmiento, an Associate Broker, whose expertise is on foreclosed properties, shares three different stages of a foreclosure process. In our DIY section, light up your creativity with soda bottle torches. They're easy to make! Eric Palacios was very generous in his contributions this month. First, in YOUR WORLD, OUR ISLAND, he offers advice in ensuring the foreclosed property is environmentally safe and compliant. On a more personal note, he talks about his beloved Grandma in a special Earth Day editorial which we celebrate on April 22nd. CURB APPEAL features cheap tricks that will offer the best home-selling returns. And, lastly, we have the ladies from GAR. Maria Miller, GAR President, sums up what foreclosure is and the things to keep in mind when buying foreclosures. Peggy Llagas, CEO and Government Affairs Director of GAR, informs us on the best practices for cybercrime prevention. PLEASE take heed on her advice. If you’re thinking about buying foreclosed property or properties, we hope you take the information we provided in this issue with you. And let us know how it went! Again, we invite all of your suggestions and comments to help make our next issue just as informative for you and your Casa! I can be reached at editor@yellowpagesink.com. Thank you and, until next month, adios and stay safe Guam! Sincerely,
CasaGuam is Published by:
Emily L.G. Untalan
CasaGuam Advertising Disclaimer All Advertisers agree to hold the publisher harmless and indemnify it against any and all claims, losses, liabilities, damages, costs and expenses (including attorney’s fees) made against or incurred by the publisher, officers or employees with respect to, or arising out of, the content, text, graphics or representations of any ad published herein, including but not limited to the sole negligence and/or fault of the publisher. The publisher is not liable for any claims, losses or damages of any kind, arising from the wording, text, graphics or representations of any ad published herein, or the condition of the articles sold through the publication, or performance of services advertised in this publication. All advertising and/or performance of services advertising and/or submissions become wholly the property of CasaGuam Magazine. CasaGuam Magazine is a registered trademark of PTI Pacifica Inc. Copyright © 2008. All rights reserved. Reproduction in whole or in part in any form without the express written consent of the publisher is prohibited. We reserve the right to edit or refuse any ad and to reprint any photo for promotional use.
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Market Repor t
Buying a Foreclosed Property his article will address buying a foreclosed property after a lender or other mortgage holder has acquired the property through the foreclosure process. This article does not address buying a property that is in the foreclosure process. With all that said, foreclosed properties typically present great opportunities for a real estate investor. There are also some challenges to be aware of.
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RIGHT OF REDEMPTION Several years ago there was a legal case in Guam that resulted in lenders, title companies, agents and others exercising an abundance of caution regarding a previous owner’s right to redeem a property as long as this owner could satisfy the requirements to redeem. The period of time this previous owner could regain the property would be year from the date of foreclosure, or thereabout. So, when inquiring about purchasing a foreclosed property the first question you will need to ask is how much time is left on the right of redemption. You can still purchase a property with time remaining on the redemption rights. However, your financing choices will probably be limited. You also face the risk that you could get a knock on the door, before the redemption rights are expired, from the previous owner demanding his house back. So, if you do purchase a property with any period of redemption rights remaining it would be a good idea to minimize your renovation investment until such rights expire. Redemption rights are valuable. You could possibly seek out the previous owner and, with the assistance of an attorney, acquire his/her redemption rights. Before undertaking this make sure you do consult an attorney and have a title company take a look at your documentation to make sure this will satisfy removal of the redemption rights exception on title.
AS IS CONDITION Most lenders selling a foreclosed property have little desire to make any updates or changes to the property. Their primary goal is get this “off the books” and get back to their primary goal of lending money. So, as much as possible, make sure you have the opportunity to complete a thorough inspection of the property so you know what you are about to undertake. Get quotes to bring the property to some minimum livable standard. There are several home inspectors on Guam that can assist you with the process.
TITLE ISSUES It’s very important that you obtain an up to date title report on the property and investigate any exceptions to title. Lenders selling a foreclosed property will probably only convey title via a quit claim deed. This means they are only conveying to you whatever interest they have in the property. They are not warranting any previous interests with this deed. Speak to a title company officer for more information on this topic.
OTHER Talk to the neighbors of the property you are looking at buying. They can often provide you with valuable information. Check with local authorities to see if the property might have been used for manufacture of any illegal substances.
PRICE Speak with your REALTOR®. Make sure that good deal that looks good on the surface is really a good deal. Consider what you will have to do to the property to some minimum livable standard. Are redemption rights coming along with the purchase? How much time is left on the redemption rights? Make sure you understand what you are getting yourself into before filling out that “price” line.
MAKE YOUR MOVE Once you have all the information and have a good comfort level, move forward with an offer! For more information on this topic, contact me at Today’s Realty. Anthony@guamhome.com or 688-8198. Whatsapp, Messenger, Text all good too. 4 CasaGuam April 2017
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Market Repor t
Market Snapshot January 1, 2017 through March 25, 2017 By Anthony Godwin
Condominium/Townhomes For Sale Average Sold Price: $226,958 Average Days on Market: 96 Number of units Sold: 36 Number of units currently for sale: 282
Condominium/Townhomes/Apartments for Rent Average Rented Price: $1,702.00 Average Days on Market: 61 Number of units Rented: 244 Number of units currently for rent: 204
Single Family Home Sales Average Sold Price: $268,705 Average Days on Market: 163 Number of homes Sold: 68 Number of homes currently for sale: 182
Single Family Rentals Average Rented Price: $2,347.00 Average Days on Market: 57 Number of homes Rented: 159 Number of homes currently for rent: 128
Top Condominium/Townhome Sale Villa Kanton Tasi, Tumon — $1,700,000.00 *(listed date to sold closed date)
Disclaimer: All data from the Guam Multiple Listing Service (MLS) as reported by REALTORS to the service. Properties transactions not reported to the service are not included in these statistics. Information deemed reliable but not guaranteed. Not responsible for errors or omissions.
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Finance Tips
Find Your Dream Home In The Rough *Paid Advertorial
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ust because the median price of a single-family home is pushing $230,000, it doesn’t mean your dream home in the perfect neighborhood is unattainable. It simply means it’s time to think outside the box. One great way to do that is to shop for a fixer-upper. Buying a fixer-upper typically means compromising on your new home’s condition, at least temporarily. Finding the right fixer-upper is like discovering a diamond in the rough. Homes that need polishing are often overlooked yet can allow you to buy bigger in a better neighborhood than you could otherwise afford. A fixer-upper could be your dream home in the rough. Of course, you need to shop with your eyes wide open. Some homes are dilapidated beyond help, but many others, those diamonds in the rough, offer a great opportunity. Finding such a home in your favorite neighborhood for below market value is exciting, but ensuring that your fixer-upper pays off in the end requires careful planning.
Step 1: Before shopping for any home, start by knowing how much you can afford. Outline up front how to make the initial purchase and how to pay for the improvements – it needs to all be part of a master plan. Keep in mind that improvements can be made over time with a home equity line of credit. A personal banker at First Hawaiian Bank will assess your financial situation, discuss the possibilities with you, and can prequalify you for a loan amount. This will allow you to confidently shop for a fixer-upper within your budget.
Image by StockUnlimited
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By First Hawaiian Bank “Usually, fixer-uppers are financed through an existing equity line or a mortgage on another property, not the subject property, however, a construction loan can be obtained,” says Maria Calvo, Vice President and Dededo Branch Manager at First Hawaiian Bank. “Financing a fixer-upper can be a bit tricky, as the appraisal is a key piece to all real estate loans. Is the seller selling the home as a fixer-upper? What is the nature of the needed improvements? Are they structural, roof related, termite damage, etc.? Or are they cosmetic improvements, such as paint, carpet, cabinetry? If there are structural issues, that is more complicated. If the home just needs a face lift, you can possibly do that with an equity line and make the improvements over time,” she adds.
Step 2: You’ll need a REALTOR®. Real estate professionals bring experience to the table in any real-estate transaction. With a fixer-upper, they can tell you what the comparable market value is in the neighborhood in order for you to make a reasonable, below-market-value offer.
Step 3: Plan to hire a home inspector and probably a contractor to give you a comprehensive list of what repairs are needed and to provide an estimate of all costs for the renovations. Make sure the estimates include materials and labor (and any permits needed). Listen to your contractor’s recommendations – if the home needs major structural work or has other significant problems, it may be too costly, and therefore too risky an undertaking. Of course the best-case scenario is a home that requires mostly cosmetic fixes. “Hire a reputable, qualified and licensed home inspector,” says Calvo. Once you have an all-inclusive list of repair costs, you’ll be able to make an informed offer. Your offer, along with the cost of repairs, should be below market value which can net you a significant savings. After all, you are doing the legwork and making the necessary improvements. Give yourself liberal credit for unforeseen problems. To see how you can purchase your dream home in the rough, talk to a personal banker at First Hawaiian Bank.
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Feature
Foreclosure for First-Timers By Emily L.G. Untalan
he “F” word. No, it’s not what you think. It’s actually even worse! I never knew what foreclosure meant until I stumbled upon a close friend’s name in the newspaper, many moons ago. It was in a Notice of Sale Under Mortgage ad. I read the fine print: “Notice of Default.” “Power of Sale.”“The property described below will be sold, Without Warranty Being Given.” Oh boy! What did this all mean? BG (Before Google), there was Webster. Dictionary, that is. So I looked it up. Foreclose is a transitive verb which means: 1. to shut out 2. to hold exclusively 3. to deal with or close in advance 4. to subject to foreclosure proceedings intransitive verb 5. to foreclose a mortgage
Foreclosure is a noun which means: 1. A legal proceeding that bars or extinguishes a mortgagor's equity of redemption in mortgaged real property 2. The extinguishment (as under the provisions of Article 9 of the Uniform Commercial Code) of the rights of a debtor in personal property subject to a security interest by judicial proceedings and especially by judicial sale Thanks to Webster, I suddenly felt nauseous. The definitions were atrocious. But despite my discomfort, I still wanted to know more about foreclosures. I picked up the phone and called the law firm noted on the ad. The firm’s legal secretary gave me a brief explanation on what a foreclosure entails. It was then that my concern turned into worry for my dear friend and her family. Obviously, they were in dire straits and will soon become homeless. Was there anything I could do to help? Although I didn’t have the kind of money they would need to save their home I could, perhaps, offer up my little home and provide them shelter until they got back on their feet. That’s the island life – helping family and friends through their hard-ships even while going through hard-ships of your own. About a month and a half after coming across the ad, I met my friend at a restaurant. Was it a coincidence? Of course it was! After greeting her, she broke down and opened up to me about the foreclosure. She explained how guilty she felt. Her home 8 CasaGuam April 2017
once belonged to her grandparents who then passed it down to her parents. Many memories and milestones were celebrated in that home. But, like most couples, my friend and her husband experienced one set-back. Then, one turned into two and two became three. This really put their home at risk. It was a domino effect for the worse. She and her husband couldn’t get out of the situation fast enough. Her immediate family tried to put all their means together to save their home, but it just wasn’t enough and, unfortunately, they lost their home. I’ve always been a renter since living on my own. But one day, hopefully soon, my husband and I will become new homeowners. We’ve talked about the different options of home buying and foreclosed property was one of them. It is actually a bittersweet opportunity when I think about. The demise of one family’s home becomes a treasure find for another. I always think about what my friend and her family went through and I feel some sort of guilt of the possibility of buying foreclosed property when the time arrives. After doing some research of my own online, and reading up on our contributing writers’ perspectives on buying foreclosures, there is so much information one must know. Two things are for certain, and our writers agree, it’s a challenge and it takes some research. Here are some of the Pros and Cons on buying a foreclosure. Information is provided by Homefinder
PROS: Home upgrades: For those willing to take the risk can use a home’s foreclosure to their advantage – buying a larger property in a more desirable neighborhood. You’ll find foreclosures in every price range — from starter houses to luxurious mansions — and occasionally the property is in great condition, ready for you to make it your home.
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Feature Financial Gains: In the best scenario, buying a foreclosure is also financially advantageous since the price you paid is below market rate. If the value of the home appreciates and you decide to sell, your investment could return even larger gains.
CONS: Overdue Home Repairs & Sub-Standard Property Conditions: Homes in any stage of foreclosure may require significant repairs just to make them inhabitable. Homes that reach the real estate owned (REO) phase of foreclosure are often in the worst structural condition. Inherited Burdens: When buying a home in foreclosure you might become responsible for any debt connected to the home. Take the time to understand the financial burdens you’re assuming above and beyond your mortgage obligation. Red tape and no guarantees: Expect extra paperwork and slow response times. In the case of REO properties, it is not unusual to wait several weeks after making an offer to receive a reply either way. While lenders do want to offload the property, many are also trying to get top dollar. If a better offer is presented, it’s possible to lose the home. Conventional mortgage complications: A conventional mortgage will be limited by the appraised value of the property; this can be problematic for foreclosed homes as the state of disrepair can lead to extremely low valuations. Conventional loans have requirements regarding the condition of the property and might not approve your loan without certain repair contingencies, creating a catch-22 since foreclosures are commonly required to be sold as-is. Steep competition: Foreclosure properties attract a lot of interest because of the incredible value they can provide. In addition to other homebuyers seeking a primary residence, you will be competing with investors who often make all-cash offers. For those whose homes were foreclosed and want to get it back, there is a way! You can get your home back within a certain period of time. This is called the right of redemption. Mr. Godwin provides information on this hopeful subject. In addition to Mr. Godwin’s take on this month’s theme, Ms. Trini Sarmiento, Mr. Eric Palacios and Ms. Maria Miller also provide some valuable information and tips on buying foreclosed property. When considering buying foreclosed property, use a REALTOR®, especially one who specializes in foreclosed properties. This will help ease the process and your state of mind. CasaGuam.com 9
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On The Cover
Dededo Executive Home ooking for the perfect tranquil house to call home? This brand new modern 2-story house in Dededo is the perfect house for you! Resting in a quiet and peaceful neighborhood, you will be amazed with what this 4 Bedroom 3.5 Bath house has to offer! A fully fenced-in yard with an automatic gate, executive kitchen layout with custom cabinetry that provides lots of storage, spacious living and dining room area great for entertaining! The balcony connected to the master bedroom gives you private access to the best view on Guam at the comfort of your bed! It does not stop here! Its modern look will captivate you. From the exterior custom wall tiles, high ceilings, to the beautiful custom light fixtures and natural lighting throughout the house. There is more to see in this beautiful house! Call your favorite REALTOR® today, Karen Pan, 988-1883!
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Why wait? Call now to arrange the showings! 171 Delores St. Dededo
MLS ML # 16-4577 16-457 16-45 16-4 1616 1 10 CasaGuam April 2017
• For Sale $528,000 • 4BD/3.5BA • Living Area: 2,096 sq.ft • Lot: 465 sq.mt.
karen1282001@yahoo.com
988-1883
Karen Pan Principal Broker
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Real Estate Spotlight
What Does a Title Insurance and Escrow Company Do? By Kim Anderson Young
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Unless you are involved in a real estate transaction, you may not have experience working with a title insurance and escrow company. For people who are involved in buying, selling or refinancing properties it is not uncommon for emotions to run wild, especially when the process does not go according to plan. The part the title company plays in the process can be broken down into five easy steps: 1. Establish the status of the title. Our title searchers create a “chain of title” by searching land management records for any document that involves the subject property. This includes deeds and mortgages; many also contain leases, easements and judgments by the court. This chain is a chronological list of how the property came to be owned by the current owner and what other interests such as leases or mortgages may currently affect the property.
4. Accounting for the Real Estate Transaction. As an independent third party to a real estate transaction, we follow the contract between the buyer and seller, as well as instructions from the lender to ensure the money is distributed as intended by the parties. We take care that lenders, surveyors, appraisers, REALTORS® and other contributors to the transaction are fully paid. We search real property tax records and, if necessary, pay any outstanding taxes so that the buyer acquires the property without any surprise expenses popping up later. 5. We insure what we do. Then we back up our work with a title insurance policy that guarantees your ownership of the property! To make it simple… Security Title makes sure you actually own the property you think you just bought!
2. Clarify land title records. Our title examiners find gaps, errors and omissions in the recorded public records. Once identified, we work with owners to correct the situation. One simple but common example; a previous owner’s mortgage may not have been released after it was paid off. Another example might be that a persons name was changed due to marriage or divorce and that legal change of name was not recorded at Land Management. When a problem is identified, we work to make sure appropriate documents are recorded that clarify and resolve the issue. When an owner sells or refinances his/her property, the escrow portion of our business kicks in. Our clients hire us to act as an unbiased third party to the transaction including: 3. Transaction Management. Escrow officers work from a purchase and sale agreement between a buyer and seller (and lenders instructions when a bank is involved in the process). The escrow officer is tasked with collecting and confirming all documentation needed to transfer the title to the new owner (deeds, mortgage, affidavits, consents, releases, etc.). An escrow officer is also tasked with collecting and clearing funds from sources such as the buyer, the lender and, when applicable, 1031 tax deferred exchange facilitators. They work closely with the REALTORS® and lenders to deal with issues that inevitably arise and to ensure the transaction closes in a timely manner. 12 CasaGuam April 2017
About the Author Kim Anderson Young, president of Security Title, has over 30 years of experience in the real estate industry. Contact her at kim@securitytitle.net or 647-8100.
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Profile
“Thank You”. Two Simple Words That Are the Most Gratifying for Cosico
By Emily L.G. Untalan
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Narciso Bitel Hernandez Cosico REALTOR® LATTE STONE PROPERTIES LLC
Cosico loves spending time with his family and he loves spending time in the kitchen, too! He enjoys cooking and experimenting with various ingredients. We can’t thank Narciso enough for sharing his profile with us. Thank you, Narciso, and we hope to try one of your dishes soon!
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Picture this. You are at home watching TV about homes and home improvements. Show after show, you become more engaged and fascinated with the subject. Then the “What If ?” question comes to mind. That “What If ?” led Narciso Cosico to Real Estate! “When our family moved here to Guam through my wife’s employment visa program, it did not afford me to work legally and immediately. I became her dependent. While waiting for my working visa, I was constantly watching TV shows having to do with homes and home improvements. I was fascinated and before I knew it, I found myself engaged in the programs regularly.” Not too long after Cosico realized he wanted to do real estate, he learned there were classes being offered so “I took a great leap of faith and challenged myself. I studied, took the exam and passed with flying colors! The rest is history!” Cosico has been in real estate for seven “productive” years now. Before that, he was in the hospitality industry for 20 years. Like many REALTORS®, Cosico loves to help every homebuyer’s dream become a reality. He says it is the most “enjoyable and satisfying aspect of the business.” On top of that, when his client’s utter two simple words — thank you — in the most genuine manner ever, for him, it is the “biggest reward of them all!” For anyone wanting to become a REALTOR®, “Go for it!” Cosico exclaims. “Enjoy the fruits of your labor as it will only lead you to a multitude of harvests. You will never know until you take that first step, every day is a learning process in the real estate profession and the rewards are bountiful. Be passionate because it does make a big difference.” Cosico believes that CasaGuam caters and captures the target markets effectively. “CasaGuam is truly a magazine worth reading. It serves the purpose of disseminating information beneficial to its readers, advertisers and contributors.”
“CasaGuam is truly a magazine worth reading. It serves the purpose of disseminating information beneficial to its readers, advertisers and contributors.”
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From the Experts
Buying a Foreclosed Property; Are You Ready to Take the Plunge? By Trini Sarmiento, BHI Realty Is it your first time to purchase a foreclosed property? Whether you’re looking at a pre-foreclosure, short sale, auction or bank-owned, find a real estate agent who has background in buying and selling these types of properties. With their help, you will be guided and will work as a team to do research, especially the foreclosure process, unless you are an expert in real estate laws and transaction here in Guam. Foreclosures are advertised in the local newspapers or at the mayor’s office. The advertisement contains information about the property that you need to know.
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Three different stages of FORECLOSURE process: Pre-foreclosure
At this stage, the owner has been given a notice that the foreclosure process is to start. If the owner can’t pay the delinquent amount due to get the loan back to current, he has the chance to sell the property before it gets foreclosed by the mortgage holder. With the help of your Real Estate agent, you can approach the owner before the property is listed for sale. This will help the owner save his credit score before the foreclosure hit. Foreclosure auction
If the owner fails to update the account into current standing, the property will probably go up for sale in a foreclosure auction. This is good if cash is available. There may be other ways to pay but usually the buyer has to pay cash in a form of cashier’s check at the time of purchase. Again, before making an offer or before going to the auction, you must inspect and find the physical location of the property. This will help you determine what you’re getting into. Order a PTR (preliminary title research) from any Title company to make sure you are not buying a secondary mortgage. Buyer assumes all risks of anything going wrong with the title, condition or any other aspect of the property. Bank-owned property or real estate owned (REO)
This occurs when no one bids at the auction and lender takes ownership of the property. They then sell it to make back the unpaid loan amount. Most banks have their exclusive Real Estate Agent to sell the properties for them. You can contact them to get information on the bank’s inventory. There hasn’t been much activity with foreclosures on Guam since the late 1990’s. There was a time when I witnessed almost 20 properties up for auction one day. It was my first time attending 16 CasaGuam April 2017
an auction. I wasn’t there to bid but rather to observe. Some bids started off at $30,000.00, minimum, and then properties were sold at less than $60k. I couldn’t help but scratch my hands, wishing I had money to bid. Those were the days. Lastly, because of the quality of materials used in CASAGUAM magazine, I find it attractive and wouldn’t want to miss reading the contents. It is very informative, especially the Real Estate sections. About the Author Trini Sarmiento is an Associate Broker with BHI Realty, with 20 years experience in Real Estate. Contact her at 687-8340.
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H o w To D . I . Y.
Soda Bottle Torches Now this is a perfect and creative way to recycle soda (plastic) bottles. These soda bottle torches will give any home, or event, a touch of elegance and a hint of sparkle. - Emily LG Untalan
By Nancy@OurPeacefulPlanet.com
Cut your bottle with a knife about 2" to 3" high.
Hot glue the lid on top of the dowel as this gives it some added stability.
Decorate your dowel with Washi tape or paint
SUPPLIES 1 Skinny soda bottle.
Hot glue the bottle bottom to the lid on your dowel.
X-acto type knife. 1 36 dowel (1/2 to 7/8 in diameter) Glue Gun Tea Lights or Battery Operation LED Tea Lights (Most Dollar Stores have them.) Washi Tape, or Paint for Decorating Iron: Optional for rounding edge. (See blog post at bottom for details)underside of the mason jar lids to the underside of my top cabinet. I tried to get the screw as close to center as possible. Feel free to pre-drill a hole in to the center of your lids before mounting. 18 CasaGuam April 2017
If your soda bottle is completely flat on the bottom you can just sit your battery operated tea light into it. Mine was raised a little so I added a tiny dob of glue to hold it in the center. It pops off easily. Make a hole in soft ground in your yard to place your dowel. You can also sharpen the bottom of the dowel if desired.
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Your World, Our Island.
Is the Foreclosed Property Environmentally Compliant? By Eric M. Palacios Whether for investment purposes, supplemental income or as a new-for-us home, buying foreclosed property is a big deal. And if it is not approached and handled properly, it could be an expensive experience. What are some of the things that you consider when buying foreclosed property? Price, location and end use are likely at the top of your thought list. This is understandable. The view, neighborhood and whether there are schools nearby are probably up there too. This is understandable as well. Is it within minutes to the malls? Or it is far away enough from the bustle of human and vehicular traffic? These are also important considerations, for sure. Here are other important considerations that I am relatively sure we rarely ask ourselves before taking this important financial leap: How old is the home? This is important because, depending on when the home was built, it could have been built using materials that are banned or heavily regulated. Refurbishing older homes can quickly get expensive on this aspect alone. Issues dealing with, and the mitigation of, asbestos, chlordane and lead-based paint, as examples, are costly. Learn the full history of any home before sealing the deal. It will ensure a win-win transaction for both the buyer and seller. Depending on the level of repairs or refurbishment, how much construction and demolition debris will I generate? This is another oft-overlooked aspect. Proper collection, transport and disposal of C&D is not cheap. In addition, you will need an approved Disposal Plan from the Guam Environmental Protection Agency. Why, you ask? To ensure that your proposed disposal facility is permitted, and that haulers are certified so as to lessen the impacts of a spill or release. Is the place littered with trash and/or bulky items? If so, you will probably need a roll-off bin to temporarily stage the waste until it is disposed. Open stockpiling is strongly discouraged because of the potential for flyaway or combustion, and because it is an invitation for rodents and pests to live in. These examples could warrant sanctions from Guam EPA and the Department of Public Health and Social Services. If you are fortunate, the foreclosed property you are considering purchasing will be relatively new, made of environmentally safe materials, and free of clutter. The questions listed above are relevant to single-family homes, but the implications are magnified and multiplied for multi-family and commercial properties. This makes it even more important to ask them.
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At the end of the day, buying foreclosed property is a worthwhile practice. It is never an easy process, and it is rarely cheap. But it does not have to be overly complicated and over budget. Asking the right questions, in addition to the obvious ones, is a great way to avoid the latter. For guidance, more information or if you have questions, you may contact Guam EPA at 300-4751/2; or DPHSS Environmental Health Bureau at 735-7209. The professionals at these agencies might even be able to give advice outside of what we’ve covered in this article — for free. About the Author: Eric M. Palacios is the former administrator for the Guam Environmental Protection Agency. He currently serves as Gov. Eddie Calvo’s special assistant for education and the environment. CasaGuam.com 19
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Earth Day
Remembering Grandma By Eric M. Palacios On this month five years ago, I wrote an article about a woman dear to me. It was a solemn tribute to show my appreciation to her for helping to shape the man that I was at that time. That woman was my grandmother, the late Antonia Francisco Mantanoña. She rested on Earth Day in 2012. “Grams,” as we affectionately called her, had a love for our land and environment like few other people. She planted, cultivated, pastured, nourished her family and healed the sick off of our land. I remember as a child, how fortunate we were to have a variety of fruit trees within steps of our front door. And depending on whom you asked, it was a treat, too, to have a variety of vegetables along those same steps. Either way, Grams made sure that there was nary a dish that she could cook without such key ingredients at her fingertips. On that note, boy could Grams cook! She raised poultry and livestock, which served as the base for a lot of our meals. These meals, by and large, were cooked outside, over an open flame of wood collected from around the property, and in vessels that date back decades. Also within steps of the house were traditional plants, herbs and trees that she used to make Chamorro medicine. I remember the throngs of cars and people that lined our driveway each day, from morning to afternoon, for Grams’ medicine. You see, Grams was one of the last remaining traditional healers. She took this role seriously day in and day out — for decades. As you can imagine, very little around our home went to waste. What we could not use anymore, or that was replaced inside the house, found new life outside of it. Today we call this practice “beneficial reuse” or “repurpose.” This was the way of life for our family, and many others, I’m sure, long before it became environmentally popular to do.
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Photo © Mark S. Burke
In sum, Grams instilled in us, her family, as much of the love and respect that she had for our land and our environment as she could. She taught us that if we take care of Mother Nature, that she would take care of us. Grams was right. This reality rings as true today as it did five years ago, and certainly as it did during my growing years. Now, as a father, I try to do what I can to teach my children some of what I learned from Grams. I will never be nearly as good a cook — or baker — as Grams, and I will never know what must be the awesome feeling of healing the sick. I do not have an outside fire pit, and the fruit-bearing trees around my home consist of donne’ and pugua. I am OK with this reality. I repurpose what I can, and give away what I cannot. The important thing to me is something that a friend wrote in a card to me when Grams went to heaven on April 22, 2012: “May her memory and life continue to live in your words and deeds.” Thank you, David Crisostomo, for these words to live by. I have tried my best since, and do not intend to stop soon. Happy Earth Day, everyone.
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Curb Appeal
Cheap Curb Appeal Tricks That Offer the Best Home-Selling Returns
By Jennifer Geddes
Create A Sitting Area Carol Marcotte, a designer with Form & Function in Raleigh, NC, likes to set up an outdoor spot on the front porch to amplify the first-look attractiveness. “Stage a place to sit that includes a pair of chairs with a couple of cute outdoor pillows,” she suggests. This idea helps your home look friendly and lets potential buyers envision themselves on Becky Dietrich, Interior Designer your front porch, sitting and waving to the neighbors. Save your pennies by putting out weather-safe indoor furniture you already own. “If your outdoor porch doesn’t have enough room to accommodate a lot of furniture, just a small bench can make a big difference,” adds Anna Shiwlall, a designer with 27 Diamonds in Los Angeles. Most savvy home sellers know that curb appeal is important to make a great first impression on potential home buyers as they pull up and park at, well, your curb. But if the prospect of painting your whole house or landscaping your yard seems too pricey, never fear: There are plenty of ways to create high-impact curb appeal on the cheap. Check out these ideas that require little investment time but pay off big-time down the road.
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Paint The Ugly Bits Not up for painting the whole house? Then one budget-friendly alternative is to repaint just the trim, mailbox, and other small areas. You can also put your brush to better use by covering up unsightly things like the electrical box on the side of the house and any pipes and parts that are connected to it. Match the color to that of your house for a clean, streamlined look.
Update Your Garage Door Improving this utilitarian spot is one of the easiest ways to give the exterior of your home a face-lift, advises Dan Grandon, president of Closet Factory Franchise Corp. “First you should consider the purpose of the space. If you use the garage for work, go with a door that features large window inserts as this helps bring more natural light into the space,” he notes. However, if your garage is mostly used as a dumping ground, you might want to focus on a more energy-efficient design, like an insulated door. And it goes without saying, the garage should be pristine (many buyers will enter the house through this space). A neat—and therefore spacious-looking—garage is one of the first things a buyer sees from the curb. 22 CasaGuam April 2017
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Curb Appeal
Trim The Hedges
Add Small Accessories
Of course you’ll make sure your lawn is cut regularly, but don’t forget about the bushes that surround the property. There’s not much worse than blocking the view of the house with overgrown boxwood. Plus, there’s the safety factor, says Marcotte. “Burglars could hide in those bushes,” she warns. Simple trimming and weeding can help beautify your yard and won’t cost you a dime.
Small details can raise the wow factor without breaking the bank. For example, hang a colorful birdhouse or two in the prominent trees of your front yard. Or place a couple of cute garden statues or sculptures (a frog, turtle, or other animal) among the flower beds. An arbor or trellis from a garden store makes a nice focal point, especially when placed near the entrance to the backyard or patio. Adding a statue is an easy garden upgrade. Just keep it classy.
Hide the clutter We’re talking garbage cans, recycling containers, air conditioners, compost bins, and garden tools. A jumbled pile of hose needs corralling, so coil it and store it inside a large pot or basket. Prefab lattice can be joined together to create a smart-looking fence to hide cans, bins, and that big ol’ AC unit. Not handy enough to make a box? Arrange a few strategically placed potted plants in front or plant a bush to help conceal these items.
Make It Sparkle In addition to picking up the yard, you’ll want to make sure the sidewalk and driveway look their very best, too. But rather than repaving, rent a power washer instead. “You can do this fairly cheaply,” says Marcotte. “You want to be sure the outside of your home is super clean, because it says ‘well-maintained’ to a potential buyer.” Citing Source: Jennifer Kelly Geddes has written for Parents.com, SafeBee, Good Housekeeping, Modern Farmer, and Care.com. Follow @jkgeddes Related topics: curb appealoutdoor spacestaging CasaGuam.com 23
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W h o Ya G o n n a C a l l ?
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Closing
Message from the President Maria E. Miller 2017 President Guam Association of REALTORS®
Buying Foreclosure Properties What is a foreclosure? Foreclosure is the legal process by which lenders, like a bank, repossess a property because of non-payment by the buyers/owners. This process can take anywhere from 3-4 months to a couple of years. Once the banks have title to the property – they try to get rid of it and recover some of the money they have lost, fast. First the Commissioner will hold a public auction at the steps of the courthouse for buyers who have cash on hand and know exactly what they are doing. If the property is not sold at auction, then the lender will usually sell the property through a REALTOR®. Foreclosed homes are usually considered “distressed properties.” Chances are the previous owners did not have the money to keep up with the house and repairs. After months or years of going through legal proceedings, the properties
Message from the Chief Executive Officer and Government Affairs Director Peggy Araullo Llagas Guam Association of REALTORS®
Best Practices for Cybercrime Prevention Cybercrime has become one of the most profound and immediate threats to businesses around the world. While national news headlines would lead us to believe that governmental entities and international banks are the prime targets of cybercriminals, that’s not necessarily the case. Let’s start with some scary statistics: • In 2016, approximately 50% of small to midsized businesses reported an attempted cyberattack. • When that attack resulted in the loss of business assets - including confidential or sensitive business data - the average cost to the victimized business ranged somewhere between $690 thousand dollars to $1.8 million dollars. • Perhaps unsurprisingly, given those numbers, the U.S. National Cybersecurity Alliance reports that approximately 60% of small businesses go out of business within 6 months of being victimized by cybercrime.
are often left neglected and/or ransacked. Once in a while banks will give the property a quick face-lift to get it listed as close to market value as possible. These are usually good discounted buys but you really need to invest in a good home inspection, ideally before you make an offer to make sure there are no hidden defects. If the inspection is foregone it may end up costing more money than you expect or can afford. Buying a foreclosed property can be a little tricky so it is important to keep the following in mind: • Most Sellers, i.e., the bank, want a pre-approval letter from a lender before accepting an offer. • There is little room for negotiations. • The property is usually “as is” & “where is” condition. The Seller usually will not make any repairs. • The property is sold without any warranty on the condition. • Home-inspections are a must. • A preliminary title report is essential to make sure there are no liens against the property. • On the good side — these properties are usually vacant and easy to see and
Our real estate industry – right now – is squarely in the sights of cybercriminals. Over the past two years, real estate professionals have been victimized – repeatedly and often – by a particularly dangerous and successful cybercrime involving wire fraud. The crime is as follows: A hacker breaks into the email account of a real estate professional, or someone else involved in a real estate transaction, and quietly gathers information. He then sends a convincing, well-crafted fraudulent email to the prospective homebuyer. In this email, the hacker pretends to be the real estate professional or another trusted advisor, and instructs the buyer to send transaction-related funds - often the earnest money or down payment - via the hacker’s fraudulent wiring instructions. The homebuyer wires the money, and as soon as the wired money lands in the hacker’s account, the funds – and the hacker – disappear forever. This is happening all the time. So what do we do? First let’s talk prevention. • Inform prospective buyers about this fraud • Buyers should confirm wiring instructions prior to sending • Consider using a secure transaction management platform • Never click on links or attachments in unverified emails • Monitor your email account settings • Regularly purge email • Employ strong password practices
inspect. When buying a foreclosed property you can usually get a “good deal” but it takes time, research, caution and patience. This is where working with a specialized foreclosure REALTOR® can come in handy.
GUAM ASSOCIATION OF REALTORS® The Voice for Real Estate on Guam Suite 236A Julale Center 424 West O'Brien Drive, Hagatna, Guam 96910 Office: (671) 477-4271 • Fax: (671) 477-4275 28 CasaGuam April 2017
And what if, despite your best efforts, your client’s transaction is hit by wire fraud? The victims should consider the following damage control measures: • Contact the FBI • Contact financial institutions • Report to local police • Change passwords • Run anti-virus • Contact insurance as appropriate - National Association of REALTORS® -
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