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CONTENTS
Message From GAR
Departments 5
10
Market Report 2011 Year in Review
8
Feature A Tough Market Guam Loan Programs are available for those who want to own a home.
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On the Cover Perlas Corte
July 2012 • Vol. 5 • No. 07 P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: office@yellowpagesink.com
|Publisher| |Business Sales Manager|
Tamuning’s Secret Hideaway
Jay-R S. Dominguez
|Display Advertising| 16
Profile Fiona Hocking “No Regrets”
Darrell T. Pereda Doris Pangelinan John Mendiola Emily Untalan
|Traffic/Circulation Manager| 19
GHURA GHURA Celebrates Their 50th Anniversary
Josie Redmond
Mark S. Burke
Mark S. Burke Edwin E. Valencia
Curb Appeal Gardening - Making a Big Impact with small spaces
27 28
Who Ya Gonna Call? Closing
|Editorial Contributors| Faye Varias Creative Services Elizabeth Duenas Anthony Godwin Peggy Araullo Llagas Deniece Menez Arlene Taitague Taitingfong David J. Sablan Senator Tina Muña Barnes Yolie Elliot Cover Photo: Mark S. Burke
Mortgage Fraud
Associate Broker RE/MAX Diamond Realty
H
afa Adai! Pulse on the Market...... Guam's warm Summer Months are heating up...the interest rates are hot, hot, hot— perfect time to refinance your home for rates as low as 1.99% up. This is also the best time to BUY...if you are renting - you can definitely afford to own your home! First Time Home Buyer's Loans are available with unbelievably the lowest interest rates in many years. A $800 per month rental payment could be a mortgage payment for a house priced at $150,000. A $1000 monthly rental payment could be a payment for a home priced up to $186,000. There are a number of programs to assist buyers in achieving the dream of home ownership. - Rural Development Loan - CAHAT - Interest free - $10,000 (up to) down payment assistance - USDA 2% Loan - FHA Loan - VA loan The Affordable Housing Symposium and Expo that was held recently was an excellent source of information for buyers. The Guam Association of REALTORS® will be conducting a similar event geared towards the home buying process in October of this year. Stand by for more details on this event or simply call the Guam Association of REALTORS® office at 477-4271/479-4271 to learn more of the details sooner. Call a REALTOR® to assist YOU in finding the perfect home for your family. Our Guam REALTORS® are hard at work helping our Community build neighborhoods and making the dream of home ownership a reality. Si Yu'os Maase.....
GUAM ASSOCIATION OF REALTORS®
Guam Association of Realtors®
By Elizabeth C. Duenas e-pro®, CRS®, CIAS®, REALTOR®
|Production Manager| |Graphics & Layout|
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Message from the President
CasaGuam is Published by:
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
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
Market Snapshot January 1, 2012 to June 24, 2012 Total Listings in MLS: Average Home Price: Days on Market: Average Condo Price: Days on Market: Average Rental - Single Family: Days on Market: Average Rental - Condo: Days on Market: No. of Agents/Brokers: Market Type:
2,084 (as of June 24) $288,192 178 $147,482 195 $2,085/monthly 86 $1,316/monthly 77 411 (as of June 24) Buyer’s (& Renter’s) Market
Buyers Rejoice! You have Choice!
Advice to Sellers My advice to Seller’s in a Buyer’s Market: Make sure your property is in tip top showing condition, is priced right and be ready to offer concessions, such as help with down payments or closing costs. Many sellers (and first time buyers) don’t realize that, in addition to the purchase price, a typical home buyer also has to come up with almost 7% of the purchase price in various fees in order to get the financing for the purchase. So if you want your property sold (or rented) provide the best incentives possible to potential buyers (and renters) and your agent. Make your property stand out physically and financially.
With just over 2,000 listings on the market buyers (and renters) have an awesome selection of properties to choose from. For those making a home purchase, the added benefit of Mortgage Rates & Outlook low monthly payments and, in some cases, seller help with down The 30 year fixed rate mortgage rate is hovering around payments and closing costs make NOW a great time to buy! 4%. What does this mean? Well if you found a found home Market Trends for $200,000, put down $20,000.00 as a deposit and were We are just about at the halfway point this year. The av- able to get the Seller to pay the closing costs, then your erage single-family home sale price at the same time last year monthly payments would be about $700.00 a month plus was $260,927 and days on market was 163. While the average home price has increased over last year the number of property tax and insurance. That’s less that rent on most homes that have sold over $400,000 has decreased. There apartments! were 57 homes that sold under $300,000 so far this year and Finding Properties 36 homes that sold for more reported to the Guam MLS. Perhaps 90% of buyers and tenants are starting their search We are starting to see seller assistance in the form of down payment and closing cost credit offerings in order to provide on the internet. Nearly all real estate websites on Guam buyers with more incentives to buy. Banks are helping. Many feature all properties from all real estate companies through are streamlining the loan process getting buyers qualified and the Guam MLS. into homes faster! Websites such as http://www.guamrealestate.com also We are in a Buyer’s Market. Most REALTORS on Guam agree with this assessment. In a telephone survey of allow you to create favorite folders, save searches and track several island REALTORS, nearly all said “Buyer’s Market” properties that meet your requirements. When you are ready when asked whether we were in a “Seller’s Market,” “Buyer’s to make a move, contact your favorite REALTOR®. Market” or “Somewhere In Between.” All data in this article is from the Guam Multiple Listing Service (MLS). 4 CasaGuam July 2012
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Feature
A Tough Market Source: www.guamhousingprograms.com
Guam Loan Programs are available for those who want to own a home. In a tough economy, buying a home may be the last thing on your mind if you don’t already own one. While many people may know there’s assistance out there, the tough part is making the first step. Here, we summarize some basic points to see if you qualify, and you never know, you may just be steps away from the American dream of homeownership. Guam Housing and Urban Renewal Authority HOME Program HOME is a grant provided by the U.S. Department of Housing and Urban Development. GHURA administers the grant on behalf of Guam. HOME grants fund a wide range of activities that build, buy and/or rehabilitate affordable housing for rent or home ownership or provide direct rental assistance to low-income people. HOME is designed exclusively to create affordable housing for low-income households. The program's flexibility allows States and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancement, or rental assistance or security deposits.
Eligible Applicants: Applicants must be organizations or individuals on Guam. • Government agencies • Non-profit organizations • Low-income families
Eligible Beneficiaries: The eligibility of households for HOME assistance varies with the nature of the funded activity. • All Home funds must be used to assist families or individuals with incomes at or less than 80 percent of Guam’s median income. HUD publishes HOME Income Limits for Guam each year. • For rental housing and rental assistance, at least 90 percent of benefiting families must have incomes that are no more than 60 percent of the HUDadjusted median family income for the area.
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• In rental projects with five or more assisted units, at least 20% of the units must be occupied by families with incomes that do not exceed 50% of the HUD-adjusted median. The incomes of households receiving HUD assistance must not exceed 80 percent of the area median. • HOME-assisted rental housing must comply with certain rent limitations. HOME Rent Limits are published each year by HUD. The program also establishes maximum per unit subsidy limits and maximum purchase-price limits.
Eligible Activities: • Home purchase or rehabilitation financing assistance to eligible home owners and new home buyers • Building or rehabilitating housing for rent or ownership • Site acquisition or improvement • Demolition of dilapidated housing to make way for HOME-assisted development, and payment of relocation expenses • Tenant-based rental assistance contracts • Program planning and administration
Application: To receive a HOME grant, an applicant must submit a proposal to GHURA’s Research, Planning and Evaluation Office. For application kit, contact the Research, Planning and Evaluation Office at Phone: 671-477-9851, Fax: 671-472-7565.
Technical Guidance: HOME is authorized under Title II of the Cranston-Gonzales National Affordable Housing Act, as amended. Program regulations are at 24 CFR Part 92. Additional information about the HOME program can be found by visiting the HOME program web pages at the U.S. Department of Housing and Urban Development web site.
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Feature Guam Housing Corporation Regular Loan Program This is a residential mortgage lending program to assist families and individuals who are first time homeowners and are unable to obtain financing for purchase or construction through conventional lending institutions. Interest rate is prevailing rate for a term of 15 years to 30 years.
Eligibility Criteria: • • • •
U.S. Citizen or permanent alien resident Resident of the territory Minimum occupancy requirement of two (2) years Must have a written denial from a financial institution
Qualifying Criteria: • Permanent employment of at least two (2) years • Acceptable credit • Maximum income to housing expense ratio of 29 percent • Maximum debt to income ratio of 41 percent including housing expense
Collateral Criteria: • Maximum loan-to-value ratio of 80 percent (first mortgage) • Improvement must be insurable with all perils • Detached single-family dwelling • Town house and condominiums acceptable upon review and common area fees must be included in housing expense calculations
Maximum Loan Amount: Increased to FHA current maximum loan limit. Public Law 22-113 authorizes GHC to adjust its loan limits using the FHA maximum loan amounts as established.
Funding Source: • Generally funded through revenue generated by operations • GHC has utilized borrowed funds from financial institutions and the retirement fund. • GHC has obtained approval as a non-member borrower from the Federal Home Loan Bank of Seattle.
Six Percent Loan Program This is a low interest rate residential mortgage loan program to assist families and individuals who are first time homeowners and are unable to obtain financing from conventional mortgage lending institutions. Interest rate is 6.00 percent for a term of 30 years.
Eligibility Criteria: • • • • •
U.S. Citizen or permanent alien resident Resident of the territory Minimum occupancy requirement of two (2) years Musthaveawrittendenialfromafinancialinstitution Applicant must be a first time homebuyer
Qualifying Criteria: • Permanent employment of at least two (2) years • Acceptable credit • Maximum income to housing expense ratio of 29 percent • Maximum debt to income ratio of 41 percent including housing expense
Maximum Loan Amount: Increased to FHA current maximum loan limit. Public Law 22-113 authorizes GHC to adjust its loan limits using the FHA maximum loan amounts as established by HUD.
Funding Source: • Through legislative appropriations • Total funds appropriated through Public Law 21-99 was $4.5 million • Total funds received from the general fund to date is $2 million • Leverage Loan Program
The Rural Housing Loan Program This loan program is designed to: • Provide loans to assist eligible persons who will live
Funding Source:
in rural areas with an opportunity to own a home
Legislative appropriations – Public Law 20-210
that would provide a decent, safe and sanitary
Community Affordable Housing Action Trust (CAHAT) This is an interest free second mortgage designed as a down payment assistance program for first time homeowners for families and individuals who lack the down payment resources to purchase or construct a typhoon-resistant home. Enabling legislation is Public Law 21-99. The term for the loan is 30 years.
Eligibility Criteria: • • • •
U.S. Citizen or permanent alien resident Resident of the territory for at least five (5) years Minimum occupancy requirement of five (5) years Must be able to obtain financing from a participating financial institution • Applicant must be a first time homeowner
Qualifying Criteria: • Permanent employment • Acceptable credit • Maximum income to housing expense ratio of 29 percent • Maximum debt to income ratio of 41 percent including housing expense and first and second mortgage payments
Collateral Criteria: • Maximum loan-to-value ratio of 95.00 percent (first and second mortgage payments) • Improvement must be insurable with all perils • Detached single-family dwelling • Town home and condominiums acceptable upon review and common area fees must be included in housing expense calculations
Maximum Loan Amount: • The maximum interest free second mortgage amount is $40,000. • The first mortgage maximum amount is determined by the participating institution based on the borrower’s ability.
living environment for its occupants. • Joint financing with Rural Development for a 100 percent financing with low interest rates. Term of the loan is 33 to 38 years for RD financing. Construction of dwelling on Chamorro Land Trust property is also eligible (Dededo properties are ineligible under this program).
Eligibility Criteria: • A person who does not own a dwelling, or owns a dwelling which is not structurally sound or functionally adequate. • Be without sufficient financial resources and unable to secure necessary credit elsewhere to meet housing needs. • Must be a U.S. Citizen or permanent resident alien. • Possess the legal capacity to incur loan obligation. • Will personally occupy the home on a permanent basis. • Acceptable credit history • Adequate and dependable income sufficient to meet the following income to debt qualifying ratios: • Low income not to exceed PITI – 33 percent; TD – 41 percent • Very low income not to exceed PITI – 29 percent; TD – 41 percent • Adjusted annual income not exceeding the applicable low income limits For more information on Guam Housing Corporation Loan Programs, call 671-647-4143 or visit the GHC office between 8 a.m. and 5 p.m., Monday through Friday at the 5th floor of the ITC Building.
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Profile By Deniece Menez
“No Regrets!”
F
“
Fiona Hocking REALTOR® TODAY’S REALTY
Significant Other: Hobbies: Motto:
Kevin sewing, knitting, embroidery, gardening, reading, cooking “Do unto others as you would have them do unto you”
…to be a great REALTOR® requires tremendous hard work, passion, sincerity, and a unique perception and sensitivity to your client’s needs and circumstances.
16 CasaGuam July 2012
“
Fiona Hocking recounts that her strong interest in real estate developed several years before she made the career change and became licensed. She has no regrets! From years with a bookkeeping business and various management positions, to running a doctor's counseling clinic, real estate is a fusion of Hocking's past career choices and experiences. She says that “the core [of her endeavors], remains the same: providing excellent customer service.” She shares that numerous real estate training exercises, webinars’ presentations, and educational classes that she attends on a regular basis, have been vital to her career. The inspiration to join the industry came many years ago by two of her friends on Guam who are also realtors. Now a successful REALTOR® herself, Hocking reveals that her passion and drive to constantly do well comes from helping people attain their dreams. When asked about the challenges she has faced in her career so far, she explains “every transaction has a different twist requiring attention to detail, sincerity, and continuous educational development, as the industry constantly develops.” Everyday she experiences meeting and helping different people. Whether they have just arrived on island and are looking for a comfortable rental home, or are ready to buy, Hocking will take the time and care needed, to find the right condominium or home for her clients. Nothing excites her more than to know that they are thrilled with their new digs! If you are ready to sell, she will give you the personal attention you need, to assure that staging, marketing and showing your home, are done to a highly professional level. She exclaims that there is nothing more exciting than closing a house sale and watching the Buyer and Seller fulfill their dreams. According to Hocking, “real estate is such a personal window of time into your client’s life. Those where you have made a significant difference in someone’s life…what a feeling!” To aspiring REALTORS, Hocking advises that “to be a great REALTOR® requires tremendous hard work, passion, sincerity, and a unique perception and sensitivity to your client’s needs and circumstances.” To homebuyers, she emphasizes, “be in touch with what you are qualified to buy; understand your budget and the expenses involved with a purchase. It is a must that you are comfortable sharing this with the realtor your choose.” Further, to home sellers, her advice is: “consider carefully your choice of realtor. Professionalism, knowledge, experience, and effective communication skills are vital considerations.” Hocking plans to continue in real estate to gain a deep knowledge of the market on Guam. “The return of clients (who have so often become friends), to help with their future real estate needs, is my ultimate goal,” she says. “Needless to say, referrals are the ultimate reward!” She expresses gratitude to many, and particularly to her two most supportive friends, Kevin and Anthony.
GHURA 50th Anniversary
GHURA Leads the Way in the Affordable Housing Market
2
2012 marks the 50th anniversary of the Guam Housing and Urban Renewal Authority (GHURA). 50 years of serving our community and building communities where families thrive in wholesome neighborhoods.
GHURA in the early years was synonymous with “low-cost housing”, or “low-income housing”. One label meant cheap houses were available through GHURA. The other meant those houses were for those who were at or below the poverty line only. Many viewed the services at GHURA only for those who were disadvantaged in our communities. That perception is true, but the services the Authority offers go beyond that. The programs GHURA administers helps individuals, couples, and families who need time to get their affairs in order. It helps those who want to move out of their parents’ home to start a life of their own; or couples who are raising a family, but can’t quite make the down payment to buy a home of their own yet; or a qualified single parent who wants to give his or her children a home in a good neighborhood, and still afford some of the necessities of life. To achieve its objective of providing affordable homes to those who qualify and building communities, there are other programs and funding sources at GHURA to assist developers who want to tap into that housing market demand. The Community Development Block Grants (CDBG) assist developers to achieve that objective. Some examples funded through the CDBG program that you see around Guam include the Dededo Swimming Pool on Harmon Loop Road; the Macheche Community Center; Southern Health Cliinic in Inarajan; and the Police and Fire Stations in Agat above Oceanview Middle School. It has purchased fire trucks and ambulances for several communities under the Block Grant program as well. From the humble beginnings of the agency in 1962, GHURA has made its mark Guam. Today GHURA receives just under $70 million each year from the US Department of Housing and Urban Development to provide assistance to those in need of affordable housing; to build facilities to create wholesome communities; and to maintain those facilities and houses the Authority has built. Today there are over 2,500 individuals, couples, and families who receive assistance from GHURA under its Section 8 voucher program. This program allows families to seek out the homes they want to lease, with GHURA’s financial assistance. In the public housing area, GHURA is the landlord and has over 700 homes it has built over the years to lease to its qualified tenants. This year, GHURA is building 10 homes in the Machanao area under its homeownership voucher assistance program where it will offer qualified applicants for public housing assistance, the chance to own their own homes without having to go through the leasing process. These qualified applicants can own those 10 homes under a mortgage plan. GHURA’s role would be to subsidize that mortgage till the homeowner is ready to take it over 100%. And it will not end at 10 homes. The overall objective with the tenants under GHURA’s Section 8 program; and its residents in the public housing units owned by GHURA, is to help these members of our community create a bridge toward
self-sufficiency. To provide them with the time they need to get a better paying job; to recover from a lay-off; or to retire some of their debts, so they can afford to lease or own a home on their own without public assistance funds. Some individuals or single parents get married and immediately are able to afford their own home, when the income of the household rises with two income earners. Many have graduated from the Section 8 and Public Housing programs. GHURA is proud to have helped them achieve that Guamanian Dream. The sad tale, however, is: For every one family that graduates from our public housing and Section 8 assistance programs, there are 3 families waiting to move in. Governor Eddie Calvo has made it a priority of his Administration to work on housing 3,000 families over the next five years. This is a daunting task, but with the help of other agencies such as Guam Housing Corporation; the Chamorro Land Trust Commission, and others, it can be done. In line with that, GHURA has outlined an approach to address this task one year at a time in a 5-year strategic plan that will be adopted by the Board of Commissioners before the end of the FY12. The initial draft was already accepted by the Board, and now the strategies of each division within GHURA must contribute the details of how then intend to achieve those yearly objectives of housing at least 600 new residents a year. Once adopted by the Board, it will become the “way forward” to achieve Governor Calvo’s promise to the people of Guam. GHURA’s strategic plan will engage housing developers and landlords to meet this objective. At the same time, the Board and management are looking to increase the training of its staff to service the existing and future clientele of GHURA. That objective is ongoing and will be met. Maintenance is also a key issue, because of the standards of care that HUD requires of the assets held in trust by GHURA. In line with that, the maintenance crew will be going through an apprenticeship training program that will improve their skills and get them to achieve journeyman status in their respective trades from general maintenance to electrician, carpenter, or plumber. Additionally, GHURA is revamping and updating its Administrative Plan and the Admissions and Continued Occupancy Policy, the operating policies of the Authority that guides its staff in serving the general public. Those policies and guidelines should be ready for implementation and use by 1 October 2012. It is an exciting time at GHURA, which will challenge the Authority. But in the spirit of true public service, the staff and management of GHURA look forward to that challenge, because it means we are helping our fellow citizens start them on their way to prosperity. Happy 50th Birthday, GHURA! David J. Sablan Chairman, Board of Commissioners Guam Housing and Urban Renewal Authority CasaGuam.com 17
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GHURA 50th Anniversary
Homeownership through Public Policy Senator Tina Muña Barnes During this past month many have taken notice of increasing forums and discussions focused on housing, and for good reason. The month of June has been designated nationally as Homeownership Month—a time to highlight the significant role it has in improving social welfare, strengthening our community, and creating jobs.
D
Part of the “American” dream was founded on the ability of its citizens to own a home. It is an idea that has spread throughout the country from Maine to our shores here in Guam although under a different name. But unlike many of the dreams we had as children, homeownership is possible. Many in the government and private sector have been working diligently to make access to the dream more attainable for every household. So why are government agencies and private sector stakeholders increasing your opportunities to own a home? One major reason for the increase in public policies to address homeownership is that studies show a direct correlation between homeownership and positive social outcomes regardless of household income levels. Beginning with a stable home, homeowners tend to live in a neighborhood for a longer period of time. Since they remain in the area longer they strengthen social ties with their neighbors and build long-term relationships. Homeowners tend to be invested not only in their neighborhood or village but also in their homes. Parents are more actively engaged in the lives of their children—both in and out of school. Their children show increased participation in school and civic activities including organized sports. Studies also show that children of homeowners are more
inclined to do better in school, have higher Math and Reading skills, and show fewer behavioral problems. Children that are active participants in school tend to have greater exposure to educational opportunities. Similarly, families who fall below the poverty line and own a home, raise the educational achievement of their children thereby increasing the earnings they will make in the future while decreasing their dependence on the social welfare system. While we can all agree that positive social outcomes build a stronger community, they more importantly create a brighter future for our children. If we are to provide better opportunities for them, it must begin in the home. As Oversight Chairperson on Housing, I have taken a proactive approach to finding solutions for our island’s housing needs. I am proud of the legislation I have introduced to meet the growing demand for Affordable Housing and expand resources for first-time homeowners. Still, there is much more work to be done. If we can continue to match housing demands with initiatives that make sense, our island will be another step closer to ensuring the dream of homeownership for all those willing to work for it. Saina Ma’ase’.
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GHURA 50th Anniversary
Homeownership Month Symposium
Housing Expo
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Guam Housing and Urban Renewal Authority
Congratulations GHURA on your 50th Anniversary!
Congratulations!
from your friends at the Agat Mayor’s Office Carol S. Tayama Mayor
Augustin G. Quintanilla Vice Mayor
Thank You for all that you do to help our Dededo community! From Mayor Melissa B. Savares Vice-Mayor Andrew “Peter Daigo” Benavente and the Dededo Municipal Planning Council CasaGuam.com 21
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Homeownership Month Employee Recognition
Abaove: GHURA Staff and Management celebrate at the 50 Year Anniversary Kickoff event Below: GHURA Employee Recognition Awards
Supervisor of the Year Teresa Blas AMP1 Property Site Manager
Visiting HUD Officials & GHURA Staff members at the Latte of Freedom
2012 Division of the Year Section 8
2012 Employee of the Year Dan Cortez CasaGuam.com 23
GHURA 50th Anniversary
Homeownership Month GHURA Projects
Agat Fire Station
Barrigada Fire Station
Caridad 1 - Mongmong
Dededo Fire Station
Haya Youth Center
Inarajan Senior Center
Lagu Youth Center
Salvation Army Homeless Shelter
Merizo Senior Center
Latte of Freedom
Northern Precinct
Senior Citizens Dementia Care Center 24 CasaGuam July 2012
Southern Precinct
Sinajana Senior Center
Dededo Skate Park
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Curb Appeal
Gardening: Making a Big Impact with Small Spaces
By Arlene Taitague Taitingfong
e live on an island where lush and colorful foliage and fauna thrive. Bring a little bit of paradise into your home. With many apartments, condominiums, and gated communities popping up, there isn’t much space one may have for a little green area, but there are ways to make it so! Our home improvement stores have a gardening section full of tools, seeds, and everything else you need to start your gardening adventure. Whether you live in a gardenless apartment or have a postage-stamp yard, take heart, as there are ways to use your sunny windowsill, patio or balcony, to create a cultivating experience. Having a “blooming” area increases the curb appeal of your home. Choose plants that are nourishing, delicious, and beautiful!
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Balcony ideas Do you have a balcony or small patio? There is potential. Even if it's too small for a chair, there is space to create a small garden, a tiny hideaway, a space outside to call your own. If you're short on ideas on what to use or how to start, perhaps you can gain some inspiration from a few suggestions below. Gardening Nook. Take your small balcony or patio and make it your gardening refuge for potting, tending to and enjoying your little plant family. Shoe Rack. Repurpose that shoe rack and make it into a plant stand to gain some elevation and make better use of your balcony's square footage. Create Privacy. Plant bamboo or hang a screen to give yourself some privacy. Plant Something Fragrant. Transform a small space into a wonderland for the senses. Keep it Simple. With a small terraced shelf and matching containers, build your little kitchen garden without a big footprint or a lot of upkeep. Start a Vine. With a simple trellis, you can grow some flowering (and wonderfully fragrant) jasmine or honeysuckle out of containers. Grow a Kitchen Garden. Start your own kitchen garden for herbs, lettuces and maybe even some veggies. 26 CasaGuam July 2012
Pegboard. It’s not only for the kitchen and the tool closet. Use it outdoors. Put some sealer on it so it doesn't rot in the weather and let it help you go vertical with your plants and containers.
Windowsill When space is limited but enthusiasm isn't – think Window Boxes for your windowsill. Just two feet long each, are big enough to grow all sorts of herbs, including oregano, basil, chives, and rosemary. I have only seen at least two houses that use the window boxes. It does make the residence very inviting. It’s attractive and a great way to spread some of the color around the outside of your home. A few pointers when starting your garden. • Vegetables need full sunlight for it to collect enough energy for a good crop. • Taller plants may be too top heavy to move easily. Living on the third floor of a condo has made me realize that those things are H-E-A-V-Y! Try a smaller shrub or leafy vegetable in light shade. • If a container hold soil and has drainage holes in the bottom, it can be used for the garden. Big containers are best as they must be able to stay upright with fully grown veggies in them. • Use potting mix – not heavy soil if when planting in a container. There are many slow-release nutrients or fertilizers already added. The size of the plant determines how much soil it will need. A gallon container will grow about five lettuce plants, but only one plant of Swiss chard collards or kale. Gardening is therapeutic and your garden can be your oasis after a long day at work. Start one today. Try one container and one plant type. It can be floral or a produce item. Build your garden gradually. Enjoy your garden and others will enjoy it too – no matter what space type or size you have!
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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 Executive Officer MORTGAGE FRAUD
By Peggy Araullo Llagas
Recognizing the Signs – Part 2
S
Some common examples of mortgage fraud as described by the FBI include:
Things to be sure of:
Property Flipping - Property is purchased, falsely appraised at a higher value, and then quickly sold. What makes property flipping illegal is that the appraisal information is fraudulent. The schemes typically involve one or more of the following: fraudulent appraisals, doctored loan documentation, inflating buyer income, etc. Kickbacks to buyers, investors, property/loan brokers, appraisers, title company employees are common in this scheme. A home worth $200,000 may be appraised for $400,000 or higher in this type of scheme.
• • • • •
Silent Second - The buyer of a property borrows the down payment from the seller through the issuance of a non-disclosed second mortgage. The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed. The second mortgage is usually not recorded to further conceal its status from the primary lender.
• Significant sales price adjustments that are not supported by comparable market data possibly accompanied by request that list price in MLS be altered to reflect appraised value. • Required use of a particular appraiser • Down payment assistance programs that charge excessive fees or that attempt to place restrictions on how their participation is reported in contract documentation, including the HUD 1 • Large seller contributions, possibly in the form of provisions for large decorator or improvement allowances • Mortgage brokers who refer pre-qualified buyers to agents • Statement that the buyer will occupy the property is questionable. For example, the buyer is retaining old property or there is unrealistic commute to the buyer employment • Buyer has very limited credit history and existing history is with high rate consumer finance companies • Credit history indicates the repayment of a prior obligation did not include any interest payments • Unrealistic income for occupation • Recent drastic increase in income due to a raise or a new job • Sales contract, appraisal and title work disagree with respect to seller’s name and appraisal shows property or comps previously sold in past year.
Nominee Loans/Straw Buyers - The identity of the borrower is concealed through the use of a nominee who allows the borrower to use the nominee’s name and credit history to apply for a loan. Fictitious/Stolen Identity - A fictitious/stolen identity may be used on the loan application. The applicant may be involved in an identity theft scheme: the applicant’s name, personal identifying information and credit history are used without the true person’s knowledge. Inflated Appraisals - An appraiser acts in collusion with a borrower and provides a misleading appraisal report to the lender. The report inaccurately states an inflated property value.
The property is clearly identified All parties to the transaction are identified and have executed the agreement The signatures are legible or properly identified All riders and addendums are attached There are no blanks or inconsistent information in the purchase and sales agreement • It accurately reflects the consideration to be paid by the buyer for the property Other possible red flags:
Equity Skimming - An investor may use a straw buyer, false income documents, and false credit reports, to obtain a mortgage loan in the straw buyer’s name. Subsequent to closing, the straw buyer signs the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no If these warning signs are present in your transaction, bring the situation to the guaranty to title. The investor does not make any mortgage payments and rents attention of your broker. While fraud isn’t involved every time one of these warnthe property until foreclosure takes place several months later. ing signs appear, the few minutes it will take to decide between innocent and fraudAs is demonstrated in each of the foregoing descriptions, a key element of the ulent can save you and your broker time, money and maybe even your license, and problem is the imbalance of information. One side, normally the borrower or reporting fraud will protect the communities in which you do business. someone working with the buyer, conceals information from or affirmatively - National Association of REALTORS®misleads the lender. Anytime an agent suspects this may be the case, further For More Information Contact: investigation is warranted to rule out any involvement by the agent or their unwitting client in a fraudulent transaction. There are several clues which may Peggy Araullo Llagas, Executive Officer Guam Association of REALTORS® alert the agent that there may be a problem. One of the most important documents in detecting fraud is the original sales Suite 236A Julale Center 424 West O'Brien Drive, Hagatna, Guam 96910 agreement and any addenda to that agreement. It is the document which the Tel: (671) 477-4271 • Fax: (671) 477-4275 real estate agent is most likely to be involved in preparing. Thus, care must be Mobile: (671) 689-4271 • www.guamrealtors.com exercised in preserving its accuracy. 28 CasaGuam July 2012
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RENTALS Kalamaso, Dededo - 2Br/2Ba - $1,700 - #12-2417 7 Aragon Toto Park, MTM- 2.5Br/3Ba - $1,900 - #12-2499 468 Chalan Emsley, Yigo- 3Br/2Ba - $2,450 - #12-2485 Chalan Gunot Las Palmas III - 3Br/3Ba - $2300 - #12-2343
Barrigada $375K 3Br/3Ba #12-2245
Yigo $199,500 3Br/2Ba #12-2228
Tamuning $365K 3Br/2Ba #12-2299
Tumon $260K 3Br/2Ba #12-2497
Yigo $200K 2Br/1Ba #12-2326
Yigo $220K 3Br/1.5Ba #12-2192
Barrigada $420K 4Br/3Ba #12-610
Dededo $170K 4Br/2.5Ba #11-4162
Dededo $179K 3Br/2Ba #11-3576
Dededo $238K 5Br/3Ba #11-2805
Dededo $289K 9Br/5Ba #12-443
Inarajan $469K 6Br/3Ba #12-448
Tamuning $499,999 5Br/4Ba #09-1332
Yigo $365K 3Br/3Ba #11-4618
Yigo $439K 3Br/3Ba #11-3983
Yigo $589K 3Br/3Ba #12-520
Santa Rita $320K 3Br/Ba #12-1775
Tamuning $299K 3Br/3Ba #11-4052
Mangilao $68KK 2Br/1Ba #12-2303
Tamuning $590K 3Br/3Ba #12-1835
Tamuning $245K 2Br/1.5Ba #12-2561
Dededo $97K 2Br/2Ba #11-4198
Dededo $210K 3Br/2Ba #12-300
Dededo $190K 3Br/2Ba #12-1945
Tamuning $1,060,000 Multi-Family #12-1955
Yigo $185K Multi-Family #12-413
185 Bamba San Vitores Ct - 3Br/2Ba - $2,100 - #12-2315 Perez Acres, Yigo - 3Br/2Ba - $2,200 - #12-2427
Villa Pacita, Yigo- 3Br/3Ba - $4,400 - #12-521 189 Benbing Lane, Dededo- 3Br/3Ba - $1,900 - #12-519 Villa Pacita Estate, Yigo- 3Br/2Ba - $1,300 - #12-202 Gayinero, Yigo - 3Br/2Ba - $2,500 - #12-116 143 Chala St, M-T-M - 4Br/3.5Ba - $2,800 - #12-45 290 Chalan Estudia, Dededp - 4Br/2.5Ba - $1,800 - #11-4367 Golondrina Avenue, Barrigada - 4Br/2Ba - $2,400 - #11-4224 Pia Resort Condo, Tumon - 2Br/2Ba - $900 - #12-1540 Chalan Rosan Hongyee, Yigo - 3Br/2Ba - $1,300 - #12-566 Perez Acres, Yigo - 3Br/1.5Ba - $1,344 - #11-4678
Homes & Condos
Herman De Leon St, Sinajana- 4Br/2Ba - $2,000 - #12-943
Alupang Cove Condo, Tamuning - Br/1Ba - $1,600 - #11-3998 Tasi 17 Condo, Tamuning - 4Br/3.5Ba - $3,200 - #11-2748 Beverly Palms Condo, Tamuning - 3Br/2Ba - $1,423 - #11-469 Perez Acres, Yigo - 3Br/2Ba - $1,134 - #10-1921 Rosario F. Untalan - Dededo - 3Br/2Ba - $2,500- #12-1729 Alupang Cove Condo - Tamuning - 1Br/1Ba - $1,750 - #11-4073 Guahan Court Condo - M-T-M - 3Br/2Ba - $1,200 - #12-2584 202 Chalan Rodeo, Tamuning - 3Br/3Ba - $3,500 - #12-2613 Perez Acres, Yigo - 3Br/2Ba - $1,400 - #12-2574 Perez Acres, Yigo - 3Br/1.5Ba - $2,200 - #12-2610
LAND Route 4, Ipan Talafofo - 2,000sm - $110K - #12-2416 Chalan Binadu Circle, Yigo - 1,858sm - $59K - #12-2438 Kayon Dalalai, Dededo - 1,858sm - $131,918 - #12-873 Chalan Castro, Dededo - 2,244sm - $336,600 - #12-796 S. Chalan Antigo, Talofofo - 27,774.22sm - $475K - #07-3850
Commercial & Multi-Family
San Vitores Road, Tumon - 9,423sm - $8,386,470 - #08-3021 Kayen Edivides Kotes, Yigo- 1,853sm - $65K - #10-1039 Rte 4 - Inarajan- 5,130sm - $125K - #11-3108 Monessa Lanan -Ordot-Chalan Pago- 1,608sm - $210K - #11-3108 Chalan Ping Pago- 1,864sm - $65K - #12-628
Hagåtña $1,482,770 Commercial #10-4166
Tamuning $1M Commercial #12-555
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