Have at it

May 12, 2006

Have at it

23 comments:

Anonymous said...: I bought a house at the top of the 1990 bubble. My realtor bought me a plant and a stuffed animal for my newborn. Then she moved away so she wouldn't have to see my child loose her home and need that stuffed bear for comfort.; May 13, 2006 2:00 AM
Anonymous said...: A True Story: I bought a duplex on Lake Ivanhoe with my Mom in 1991, for $125,000.00, split 50/50. The home is located on a Beautiful lake with a view of downtown. My living room had 17 feet of glass overlooking this breathtaking view! The original antique ‘heart of pine’ floors were priceless and irreplaceable. This area is the most expensive residential real estate in downtown Orlando, FL. All totaled, this duplex had seven bedrooms and four bathrooms, four porches, etc. It is a two-story cracker style house with up-down flats. Gorgeous!

A random Realtor wanted to get into selling "Single family Rich, and took my elderly retired elementary school teacher Mom out to lunch and bought her flowers to get the listing. Mom loved the attention.

EVERY ONE in the family told her not to sell in 2000. Especially me! It was my home. My plan was to live there forever, watch the value go up and pay it off and leave it to my children.

The Realtor talked my Mom into the listing and promptly put it on the cover of her advertisements. The Realtor found a buyer (what a surprise) at $269,000.00 (same price as her 2 bed room 2 bath crap condos downtown, gutted!) This Realtor then told my Mom to tell me I had 10 days to take my two young children and find a home, or she would loose the buyers. And told me that I, "Had to sell my half". The new buyers wanted to turn it into a single family home, with my living room to be their Master Bedroom, etc.

I now know that I did not have to sell my half and what the realtor told me was incorrect (Greed on the realtors part maybe?). Anyway, this 6-bed room 4 bathroom Home on Lake Ivanhoe, downtown Orlando is today worth $700,000.00.

So, I took my measly capitol gains in 2000, (after “squatting” in my hijacked home for three days after the closing, with nothing but a mattress on the floor) and paid $100,000.00 cash for a 3 bed room 2 bath condo, also Downtown Orlando, on the 16th hole at Dubsdread Country Club. Within eight months of living there, my entire condo and it’s content was destroyed in some violent Florida weather. My children and I got out with nothing but the clothing we were wearing.

After five years of litigation, and moving 17 times, 13 times in hotels, the insurance is settling with me for 2001 home prices, whilst I rent a POS in the same neighborhood ($500,000.00 homes) for $750.00 a month.

I guess at this point, I am out of the RE game unless the Bubble Bursts and I do not care what happens to the Insurance Company’s, (who really own your home)the lawyers, (who self deal)the flippers (who ran prices up beyond reality) or the Real Estate “Professionals” with their high moral ground slogans.

The sad part is it was not a game for me. It was my home. I am now 50, and starting over. My children are fourth generation from Orlando, and we cannot afford to own a home.

Does anyone have a sharp object to move things along? (:; May 13, 2006 3:06 AM
Anonymous said...: PS. Even though things could be a lot better, (see above) I am one of the lucky ones. I am renting, and I have a little cash with no debt.; May 13, 2006 3:31 AM
Smart Grid blogger said...: VIDEO

Dwek's land deals attracted attention in Ocean Township

Also known for his charitable giving
Posted by the Asbury Park Press on 05/12/06
BY JASON METHOD
STAFF WRITER

OCEAN TOWNSHIP — Real estate mogul Solomon Dwek was so active in purchasing houses, offices and land at top dollar that local property prices may drop as a result of his apparent downfall, a councilman said Thursday.

"He was his own bubble on the market, and it burst," Councilman Christopher P. Siciliano said. Siciliano works in real estate at the Gavin Agency.

Siciliano said Dwek had hired real estate agents to scour the area to look for properties to buy. In some cases, those agents said Dwek was buying property sight unseen, Siciliano said.

"Some prices will have to come down because of the lack of competition," Siciliano said. "He certainly created competition. It could be anywhere from 3 to 10 percent. That's significant on a $600,000 house."

Dwek was arrested Thursday on federal charges that in April he defrauded PNC Bank out of nearly $23 million and tried to defraud it of another $25 million. A judge last week froze all of Dwek's assets pending a hearing today.

Township Manager David R. Kochel said officials had checked Dwek's substantial land holdings to see if his property taxes were current because the second quarter payments were due Wednesday. The taxes are current, Kochel said.

Dwek and his related companies hold properties assessed at $54 million in the township, a Press analysis of public records shows.

Siciliano said Dwek's holdings in town are so substantial that if he were to default on his tax payments, the local tax rate would have to rise by one cent per $100 of assessed value to make up for the lost revenue, or about $44 for an average homeowner.

A well-known figure

Residents and officials said Thursday that Dwek was well known in the town and had a reputation for charitable giving, both generally and within the Orthodox Jewish community.

David Haber, 23, a student of the Deal Yeshiva where Dwek is vice president, said Dwek frequently wrote personal checks to help cash-strapped students and their families. Many yeshiva students do not work as they attend school.

"Many mornings, there are people waiting for him at the synagogue after prayers, asking for his help," Haber said. "He is a very nice guy. He helps everybody. There is only good to say about him."

Haber, who studies under the yeshiva's head, Rabbi Isaac Dwek, Solomon Dwek's father, said he was aware Solomon Dwek had given substantial money to support Orthodox yeshivas in Israel as well.

Haber said he did not believe Dwek intended to defraud banks.

"If anyone could believe he could get away with $25 million — you've got to give him the benefit of the doubt," Haber said. "Even if it did happen . . . I'm sure he had a reason."

Ken Bizzoco said he was surprised at the fraud charge as well, but for a different reason. Bizzoco, 29, a branch manager for Commerce Bank, said he couldn't believe the charge that Dwek talked employees at PNC Bank into cashing a $25 million check without having the money to cover it.

"I've been in banking for seven years. I can't imagine making $25 million immediately available for anyone," Bizzoco said. "It's a real shocker. I'm sure there's a story behind it."

Sheila Cohen, 62, of Long Branch, owner of a shoe store in Ocean Township, said she believes Dwek simply misjudged his financial situation.

"I don't think he's a bad kid," Cohen said. "He got caught up in something. He made a few mistakes."; May 13, 2006 5:59 AM
Anonymous said...: To the anonymous with the "true story:"

Your mother sounds like the stupidest person on Earth, but if half the duplex belonged to you, why didn't you stay?

Why aren't you dragging the realtor into court? The woman appears to be without conscience.

The first thing you should have done is hired an attorney to block the sale. Why did you do nothing?

Just curious.; May 13, 2006 2:59 PM
Anonymous said...: A True Story Response;

I took the Realtor at her word, that I had to sell my upstairs half of the building, which was my mistake.

By the time I found out that I could have kept my home, and I started looking for an attorney, the statute of limitations had passed. (remember, I was already in another RE Legal battle)

The realtor still “specializes’ in Downtown Orlando, and still works for the same Broker.

I am still a single Mom to a teenage boy.

I have not seen or spoken to my Mom in many years.

I am waiting for a check for under $100,000.00 from the Insurance Company,
that I should get any day, from the lose of my Estate in 2001.

I have owned a home since 1984 in Orlando, and am not sure what to do now that am a renter.

So I read Keith’s BLOG!; May 13, 2006 3:31 PM
Anonymous said...: Well, I definitely think you need to make up with your mom (family is infinitely more important than stuff).

As for the insurance company, you are not alone. Tens of thousands of insurance customers in New Orleans still have not received a cent. Insurance companies OWN this country, including much of the most expensive commercial real estate, but when it comes to paying out, they simply pass the bulk of cost on to their customers in their next year's insurance bills, so they (the insurance companies) don't lose anything.

These are the same folks who claim frivolous medical malpractice suits are the reason malpractice insurance is so expensive. In actuality, malpractice claims represent a tiny fractiction of insurance payouts. The reason insurance companies charge a fortune for malpractice insurance is because they can, and because doctors are foolish enough to buy their explanation and pay the premiums. If physicians had any sense, they'd form their own non-profit malpractice insurance company.

The reason insurance companies have pushed for caps on personal injury and medical malpractice claims is because they want even greater profits. Here in Florida, a cap placed on malpractice payouts has greatly limited the number of people who can sue for malpractice, since most law firms are not wealthy enough to persue such judgements with severely limited returns. What the insurance companies and physicians never mention is that to sue for malpractice in Florida, a patient has to have been seriously and PERMANENTLY injured, and to have had his malpractice claim validated by a state malpractice board set up to protect doctors (not patients).

Of course, nobody does anything to get rid of bad doctors, and the same quacks are sued over and over again.

I see that State Farm wants to double hurricane insurance premiums for many people in Florida. What's the point? To reiterate, MOST of the money paid out for a hurricane is collected AFTER the catastrophic event from ALL customers in Florida (or elsewhere) in the form of higher new premiums, and has little to do with premiums collected before the event, so the REAL reason for doubling next year's insurance bills is to aquire money to pay out LAST YEAR'S claims. Thus, the insurance companys' stashes remain untouched, and profits soar higher than ever.; May 13, 2006 4:19 PM
Anonymous said...: A True Story Response:

Thank you for your interest and advice. (:

You nailed it right on with your quote "The Insurance Companies OWN this Country". They owned my home, even though I paid for it in full at the closing. That is truly not an exaggerated statement, and it was quite another surprise.

I wish the public was more aware.

I do have some relief now that hurricane season is here and I do not have another possible catastrophic loss to anticipate, as I do not own any thing! You know the feeling, as you are in Florida also.

It seems the Insurance Company just finished me off, after the Realtor had her go at me! (:

Oh well, Up ward and on ward.; May 13, 2006 4:37 PM
Anonymous said...: Be glad you don't own a home right now. There is only one house in all of Tampa I would be happy to own, and it has cast-stone walls two-feet think and a heavy terra-cotta tile roof.

It's very important for Americans to STOP legislation intended to cap personal injury and malpractice awards. No matter what propaganda they've heard, this legislation is only intended to make insurance companies wealthier, and will not impact the public's premiums one red cent. In fact, in Congressional hearings last year, insurance company executives admitted that capping payouts would not reduce anybody's insurance premium. It's all smoke and mirrors designed to trick a gullible public.

Nobody realizes how important the right to sue for large malpractice and personal injury judgements is until that person has experienced a catastrophic injury or loss.

Yes, there are awful personal injury lawyers who grossly exaggerate their clients' injuries to get maximum judgements, but personal injury and malpractice are two different categories. When presenting the issue, however, insurance companies and their political cronies (at the moment, the Republicans) throw everything into one pot to confuse voters.

Canada does not allow insurance companies to rip customers off, but here in the U.S. big business calls the shots. And the; May 13, 2006 5:07 PM
Anonymous said...: Be glad you don't own a house in Orlando at the moment. There is only one house in all of Tampa I would be happy to own, and it has cast-stone walls two-feet think and a heavy terra-cotta tile roof.

It's very important for Americans to STOP legislation intended to cap personal injury and malpractice awards. No matter what propaganda they've been subjected to, this legislation is only intended to make insurance companies wealthier, and will not reduce doctors' or anybody else's premiums one red cent. In fact, in Congressional hearings last year, insurance company executives ADMITTED this.

Nobody realizes how important the right to sue for large malpractice and personal injury judgements is until that person has experienced a catastrophic injury or loss.

Yes, there are awful personal injury lawyers who grossly exaggerate their clients' injuries to get maximum judgements, but personal injury and malpractice are two different categories. When presenting the issue, however, insurance companies and their political cronies (at the moment, the Republicans) throw everything into one pot to confuse voters.

Canada does not allow insurance companies to rip customers off, but here in the U.S., big business calls the shots. And there no business bigger than insurance.; May 13, 2006 5:13 PM
Anonymous said...: Hey Keith. Could you remove the first of the two "duplicate" posts above? I don't know how it got published. I was revising it. I prefer the second version. Thanks.; May 13, 2006 5:15 PM
Anonymous said...: Very sad story on being forced from your home. Life sometimes has a very cruel way of teaching lessons, doesn't it?

My gut instinct tells me that there is more to the story, but that is neither here nor there.

I would say that the lessons from your experience may have great value, especially for FBs who will be forced from their homes in the coming years due to the need to refi and the lower appraisal values. Some (many?) will be forced to move in with their aging parents and may get into a similar situation.; May 13, 2006 8:30 PM
Anonymous said...: A true story.....just goes to show you how stupid you were. People don't hold a gun to your head and make you sign away something you own. And if they did...that's what the courts are for. However, you went on her word and her word alone. Don't be angry at other people and the market because of your iggnorance!; May 14, 2006 1:43 AM
Anonymous said...: From True Story "Vic";
I agree with you both (above), in retrospect, I am responsible for the event, by my inaction, and stupid trust. And, you are right, there is a lot more to the story. I did simplify it to "vent" and hopefully educate some people, for what that is worth. Keith's Blog gives me hope.

I learned an expensive lesson.

Well, it is Saturday night and I am going out. (:
TTFN; May 14, 2006 3:00 AM
Anonymous said...: Have fun. The only way we learn in life is by learning, and there is no shame is making mistakes (unless they're vicious or cruel).

Call your mother, or go see her, and get rid of the grudge. She went through tons to give birth to and raise you, and you owe her.

Every day and night forgive the realtor who cheated you: She was acting out of fear, too (fear of starvation, embarrrassment, etc).

Here's something worth downloading and reading over and over:

http://tinyurl.com/nlnvo

It can actually change your life. You'll nead Adobe Acrobat Reader to open it.; May 14, 2006 3:11 AM
Anonymous said...: THANK YOU FOR REAFORMATION, IS THAT A WORD, OF MY BELIEF SYSTEM.
DEEP, AND GOOD STUFF.; May 14, 2006 6:27 PM
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May 12, 2006

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