Tidbits from the Library

From NY Public Library's Staten Island Timeline:



1524: April

Giovanni da Verrazano, an Italian explorer
sailing under the Sponsorship of King Francois I of France, anchors his
ship Dauphin in New York Bay. He had hoped to discover a new route to
Asia.


1609: September 3

Henry Hudson, an English explorer
sailing under the sponsorship of Holland, enters New York Bay in the
ship Halve Maen (Half Moon). He names the island Staaten Eyelandt in
honor of the Dutch Parliament - the States General or Staaten.

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You Know You Are From Staten Island When...

This is from a great site called A History of Staten Island, New York, which has plenty of historic photos, and other items of historical interest as well. Definitely worth a visit to see what this little Island of ours is all about!

You know you are from Staten Island when...

• You refer to Manhattan as 'the city.’
• You call the ferry 'the boat.’
• You can name all four bridges.
• You’ve gone sledding at LaTourette.
• It takes you a half hour to get to your friend's house... and they
  live less than a mile away.
• You have fond memories of the metal box outside your front door
  where the milkman put glass bottles of milk
• You know it's Prince's Bay, not Princess Bay.
• You would never swim in the water here.
• You take pride in being from the ' South Shore ' or ' North Shore
  '
• At least one of your relatives or neighbors speaks Italian.
• You remember where EJ Korvettes was.
• Majors department store was a big deal when it opened in Mariners
  Harbor.
• You know its The Outerbridge Crossing not the Outer Bridge.
• You have gotten into arguments with people who think Long Island
  is the fifth borough.
• You or someone you know has more than one matching velour jogging
  suit in their closet.
• You take fresh mozzarella and prosciutto for granted.
• Every year you went to the New Dorp/Curtis game before
  Thanksgiving dinner, even if you didn't go to either school.
• You recall Weisglass Milk and Weisglass Stadium.
• You know the difference between Richmond Road, Richmond Avenue,
  and Richmond Terrace.
• You know that 'Mike' or 'Nick' own all the good diners.
• You remember the sound of the SIRT gates going down when a train
  approached.
• You remember the 'orange' home delivery bread trucks from
  Holtermann's bakery.
• There are now 20 families living in town homes where there used to
  be one family living in a cape cod.
• You remember trying not to slip and slide around on the wicker
  seats from the old SIRT 'olive colored' trains.
• Your car cannot fit between the driveways of two houses
• You know that we don't have apartment houses, we have Projects.
• You've eaten at the Victory Diner at 3:30 am
• You have fond memories of Bacci, Steinman's, Cosmo's, Al Deppe's,
  Demyan's Hofbrau and Tavern On The
  Green.
• New Dorp Lane was simply referred to as 'The Lane' and Richmond
  Avenue was simply 'The Avenue'
• You remember when there were only about four or five traffic
  lights along Hylan Blvd from Richmond Avenue all the way to the Conference House.
• You know every back road to the Verrazano.
• You remember a horrible mid-air collision where one of the burning
  airliners fell into Millers Field in New Dorp.
• Goodhue and Tompkinsville pool brings back fond memories.
• You remember Wetsons, Goodys and Jack in the Box
• You remember movies at The Lane, The Ritz, The Star, The
  Tompkinsville, The St. George, The Paramount.
• You know that a chocolate egg cream doesn't actually have any egg
  in it.
• You remember the trains above ground before they were put
  underground.
• It was a nickel to ride the bus with your bus pass.
• You went to the concerts every Wednesday evening in the summer at
  Silver Lake.
• You referred to the King's Arms as "the Arms" and called it the
  Queen's Legs at least once.
• Pal Joey's "slice of pizza and a coke" was 25 cents
• You know where Travis is.
• You made Al Deppe's chicken dance for a penny.
• You know that we have an Armory and where it is
• You remember when Father Capadano Blvd was simply called Seaside
  Blvd
• You put pennies on the SIRT tracks so the trains would flatten
  them.

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HUD Officially allows Tax Credit to be used for Downpayment

HUD announced today that
first-time home buyers can use the $8,000 tax credit toward down payments on
FHA-insured homes, something that we mentioned here before. The press release makes it true.

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Discover Staten Island

Excerpted from Diane Lore's article in the Staten Island Advance: Islanders can discover facts about their hometown during Treasure Your Island, a community-awareness day that will take place June 7 from noon to 4 p.m. at the Bernikow Jewish Community Center (JCC), 1466 Manor Rd.

The event is free, rain or shine, and is open to the public. Parents can learn about what's available to do with their children for little or no cost, and Islanders can learn about volunteer opportunities around the borough. Parks, museums, theater, film, music and art offerings will also be showcased. The day will include activities for children and adults, live music, dance and giveaways.

Photographers are encouraged to take pictures of the cultural and recreational places on the Island and upload them to the Web site www.flickr.com/photos/treasureyourisland, so that they can be projected on screens during the event.

Treasure Your Island was created by an ad hoc committee representing cultural and recreational organizations throughout the Island. More than 20 organizations will be participating, among them the Greenbelt; the Staten Island Zoo, West Brighton; the Jewish Community Center; Clay Pit Ponds State Park Preserve, Travis; Gateway National Recreation Area Staten Island Unit (which includes Miller Field in New Dorp, Great Kills Park, and Fort Wadsworth); the Alice Austen House Museum, Rosebank, and the Council on the Arts and Humanities for Staten Island (COAHSI).

For more information on "Treasure Your Island" the person to contact is Claire Aniela Arthurs at 718-605-3970 or e-mail at treasureyourisland@gmail.com, or visit the myspace or Facebook page at www.myspace.com/treasureyourisland or www.Facebook.com/treasureryourisland.

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Obama Signs Bill to Help Families Refinance Mortgages

From NAHB:

President Barack Obama last week signed into law legislation that will help struggling borrowers refinance into 30-year, fixed-rate mortgages insured by the Federal Housing Administration.

S. 896, the Helping Families Save Their Homes Act of 2009, received strong bipartisan support in both chambers of Congress. The measure cleared the Senate earlier this month by a vote of 91 to five and passed the House by a comfortable 338 to 52 margin on May 18.

The newly enacted law will revamp the Hope for Homeowners program to permit the reduction of excessive fee levels, provide greater incentives for mortgage servicers to engage in modifications under the program and reduce administrative burdens to loan underwriters. The aim is to make it easier for strapped home owners to refinance into more affordable loans.

Omitted from the final bill was a controversial “cramdown” provision to allow bankruptcy judges to modify the terms of mortgages on a primary residence.

The newly enacted law will increase the Federal Deposit Insurance Corporation's line of credit from the U.S. Treasury to $500 billion through 2010 and $100 billion thereafter. In addition, the higher FDIC deposit insurance coverage limit of $250,000 per account was extended through Dec. 31, 2013 after which it will revert back to $100,000.

The legislation contains a provision of concern to NAHB that would require investors who are buying foreclosed properties to allow Section 8 renters to remain in the property for up to one year. NAHB had sent a letter to Congress questioning the fairness of this requirement.

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Outliers: Secret To Success

I've heard nothing less than amazing things about the Outliers book written by Malcolm Gladwell. Although this book came out in Novemeber of 2008, I'm just now getting around to reading what the media and people have been raving about. Malcom really digs deep into some of the greatest success stories of all time, such as Robert Oppenheimer, Bill Gates and The Beatles to name a few.

Outliers tells a story about the context in which success takes place: family, culture, friendship, childhood, accidents of birth and history and geography. Gladwell writes, "It's not enough to ask what successful people are like. It is only by asking where they are from that we can unravel the logic behind who succeeds and who doesn't."

For any person burning with the desire to be successful in the real estate industry might find some inspiration from reading this book.

+ Outliers on Amazon

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Video Pick: The Staten Island September 11th Memorial

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More older Americans choose age-based communities

A couple of exceprts from a Marketwatch article on the benefits of 55-plus communities:

Moving doesn't mean moving far

By and large, 55-plus Americans move into age-based communities to live closer to another family member. Increasingly, older Americans are moving into age-qualified or age-restricted communities not far from where they presently live.

Downsizing doesn't really mean downsizing

Another reason Americans 55-and-older gave for moving was to upgrade their home's quality and in some cases -- though not always - to buy a smaller home. Many older Americans are moving into homes with less than 2,000 square feet.

Aging boomers also moved to 55-plus homes that had plenty of community amenities, in particular open space and recreational facilities, such as a community center or club house, a golf course, walking/jogging trails, a beach, park or shoreline. For some, the desire to be closer
to work was a big reason to move.

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What the Heck is a Heckum?

A Home Equity Conversion Mortgage or HECM (which people in the industry pronounce Heckum) is a "program, which is aimed largely at persons 62 years or older who want
to move down the housing ladder, allows seniors to sell their current
residence and use a reverse mortgage to buy a new one, all in a single
transaction that eliminates the need for a second set of expensive
closing costs. HECM's are insured by the Federal Housing Administration."

That is taken from a Market Watch article on how to use a HECM to buy another house. A rather interesting read.

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A Meal to Remember at DoSi Caffé

I had the good fortune to visit DoSi Caffé on Bay Street the other night as a guest of some friends. I had never been before, and was pleasantly surprised to find the atmosphere as warm as the service which sometimes seems to be a rare commodity on Staten Island.



The warmth and attention that the DoSi staff showers on its guests shines through in Chef Warren Schierenbeck's food which everyone agree was excellent. My host had arranged for a couple of special plates, rather than ordering off the menu, but we had generous helpings of antipasti, pasta, steak and bronzino, all followed by dessert. Needless to say, I went home more than a little full.



One dish in particular was such a stand out that I pleaded with owners, JoAnn Libretti and Chef Schierenbeck, to part with it so that I could share it with you. You'll find the decadent recipe below but you should really go to DoSi to try it for yourself -- all you foodies can call it empirical research.

Cavatelli with lobster, corn and asparagus

1 lb Cavatelli
8 oz. Lobster meat
1 cup fresh corn kernels
1 cup asparagus spears
8 oz. Butter
1/4 cup chopped parsley
2 oz. anisette

1. Cook pasta according to directions on package.
2. In separate pan warm all ingredients except for parsley in 1/2 cup of water
3. Add cooked pasta
4. Add parsley
5. Toss and cook over low flame for 2-minutes until sauce coats ingredients
6. Season with Salt and pepper
7. Serve Immediately

Enjoy! And remember when you visit to let them know the SIREN sent you!

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Video Pick: NAHB $8,000 Home Buyer Tax Credit

Where would we be without Youtube and Social Networking sites. In today's market an online presence is an integral component to a business' success, as it is the most efficient way to disseminate information to the public. For instance the video below created by NAHB provides homebuyers with all the necessary information to properly take advantage of the $8,000 tax credit.

NAHB $8,000 Home Buyer Tax Credit Official Facebook Site

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Words Of Wisdom To Live By!

Click on image above to view in original size

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FHA Borrowers Soon Can Use $8,000 Tax Credit at Closing

HUD Secretary Shaun Donovan

Exerpts from BuilderOnline.com:

In a significant boost to the housing market, HUD Secretary Shaun Donovan announced yesterday that first-time buyers using FHA loans would soon be allowed to “monetize” the $8,000 federal first-time buyer tax credit and use the funds for their downpayment.

The details of the program still haven’t been announced, but the revised policy seems to offer two main benefits.

First, it clarifies HUD’s position regarding state finance agencies that had already established programs to help first-time buyers use the tax credit as part of their downpayment or additional equity in their home purchase. While a handful of states had already begun doing this, according to Rob Dietz, director of tax issues at the NAHB, others had been waiting for more information; Donovan’s remarks appear to give HUD’s blessing to the practice.

Second, the policy should bolster the housing market by allowing first-time buyers using FHA loans to stretch their dollar by using the federal credit at settlement as part of their closing funds, rather than waiting months for a refund on a tax return. “This allows them to solve the ‘chicken or the egg’ question [of which comes first]: the promised tax credit or the closing” that allows them to get the money, Dietz told BUILDER Tuesday, adding: “They have a right to this credit amount as a first-time buyer. It makes sense to turn this credit into their home equity.”

If these buyers could monetize the tax credit, they would essentially receive a short-term bridge loan for the amount of the credit (which could vary based on their income and the home’s sales price). They could apply that money to their downpayment or as additional equity in their home. For buyers working with a state housing finance agency, the monetized tax credit often becomes a “soft” second mortgage, which they must pay back once they receive their tax refund. If buyers don’t pay it back quickly, Dietz explained, the bridge loan typically converts to a 10-year second mortgage, ensuring that the agency gets its money back no matter what.

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Staten Island Restaurant Week is Coming

The Staten Island Advance notes that there are several restaurants that have special offers that are in effect even before Staten Island's restaurant week hits on May 30th:

Indian Clove, 1180 Victory Blvd., Sunnyside, 718-442-5100
An $8.95 lunch buffet is on from Monday through Friday from noon to
3:30 p.m.

Carol's Cuisine & Cafe, 1571 Richmond Rd., Dongan Hills; 718-979-5600; CarolsCafe.com
Weekdays, Carol's features a $21.95
prix fixe dinner.

Bayou, 1072 Bay St., Rosebank; 718-273-4383
Sunday through Wednesday there are four course dinners for $17.95.

Beso, 11 Schuyler St., St. George; 718-816-8162

Monday through Wednesday
bargain meal is $20.09.



Chez Laurent, 991 Bay St., Rosebank; 718-442-0007

Entrees run under $20 and four course prix fixe meals
(usually four courses) are under $25.



Lorenzo's Restaurant, Bar & Cabaret at the Hilton Garden Inn, 1100 South Ave., Bloomfield; 718-477-2400
$20.09 prix fixe all year round. For May only,
Lorenzo's offers "Wine Down Wednesdays," with 50% off wine. Sunday is a jazz brunch for $29.95.



Killmeyer's Old Bavaria Inn, 4254 Arthur Kill Rd., Charleston; 718-984-1202

Wursts are on sale each Wednesday for $9.99. Monday
and Tuesday's are "All You Can Eat Bavaria," with select German items at $17.

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Buyers of New Homes Need to Act Soon to Get Tax Credit

Only about seven months remain before the $8,000 tax credit
for first-time home buyers is scheduled to expire, which means that buyers looking for a newly
built home need to make a decision soon if they want to be able to take
advantage of the federal incentive. According to the NAHB, just getting into a sales contract on a new home by the Nov. 30 deadline is NOT sufficient to receive the first-time home buyer tax credit -- you must complete the purchase of the new home before you are qualified. This means that a home buyer only qualifies for the tax credit only when title transfers.

Building a home from scratch takes at least four months sometimes as much as six, and that means that the deadline for buying a home that is built from the ground up is fast approaching. On top of that, there is the time that a buyer spends selecting a community, a builder, a floor plan and the
options they want in the home before anything even starts on the site.

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Spring Price/Rate Thaw, Tax Credit Draw Homes Buyers

From NAHB.com:

The frozen housing market appears to be thawing as more buyers are finding the current historically low interest rates, stabilizing prices and tax credit refund incentives irresistible.

"Today's market offers an incredible opportunity with the unprecedented combination of a 40-year low in interest rates, prices returning to normal levels in many markets, and limited-time tax incentives," said NAHB Chairman Joe Robson.

The number of homes under contract increased in March, according to the National Association of Realtors' Pending Home Sales Index, which increased 3.2% from February to March.

Optimism about the housing market is on the rise as well. An April 16 Gallup Poll found that 71% of Americans said that now is a "good time" to buy a house, an 18 point increase from one year earlier and the highest level in four years.

Natasha Smith had been monitoring interest rates and home prices, but decided to take the plunge when the $8,000 first-time home buyer tax credit was enacted in February. The 25-year-old closed on a condominium in the Washington, D.C. suburb of Hyattsville, Md., in April.

"I wasn't in a rush as I continued to watch prices fall, but when I heard about the $8,000 tax credit, I knew it was the perfect time to buy," she said. "Combined with the low home prices and interest rates, the tax credit was the extra push I needed to get out of the family home and into a home of my own."

For more information about the $8,000 first-time home buyer tax credit, which ends on Nov. 30, go to: www.federalhousingtaxcredit.com.

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55+ Active Adult Community Is On the Rise

The Club at Clove Lakes Park

So, a little nervous to purchase homes in the 55+ active adult-community? Although, there is more than enough to be worried about, it is probably an ideal time to purchase land to develop an active-adult community, or even homes within an already existing community. Location is everything. The growing trend in the 55+ world is to continue working past retirement, find a house close to family and their workplace. Most importantly, any land or housing in a community designed for an adult community will be selling at its lowest due to the change of plans in the aging households, and the low demand to move right now.

Here’s what needs to be done. Find a location near a commercial area for two reasons: A. the adults would like to be closer to their jobs, being that they have decided to postpone retirement, and B. chances are they have children working in those areas and would like to stay close to them. In summary, take advantage of the currently lower market prices, pick a location relatively close to a commercial area, and patiently wait for the market to take its turn. The adult community has taken a new route, which is staying close to businesses and family. Like every investment, buy low, and sell high. Once prices increase, the adult community will be able to leave their current homes with a nice sum of money and enjoy their new, modernized, adult communities.

Check out this article from NAHB that has some interesting research on what's going on in the 55+ community.

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Da Noi: Staten Island Cusine Makes Zagat's Top 1000

If you haven't been to Da Noi on Staten Island I recommend you try it out. When it comes to Zagat's top rated restaurants you are usually never disappointed and their picks are well earned. Check out the NY 1 article below and form your own decision. Enjoy!



Zagat Restaurants: Da Noi Brings Top-Notch Italian To Staten Island

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Dutch Treats Follow Up

A follow up to the Dutch Treats post earlier in the week, I went to the opening of this exhibition and can say that this is definitely something worth some of your time. While the exhibition is not quite as large as Mr. Way's previous exhibits, this time around he has created a period room based on the 17th Century interior from the Dutch Golden Age. The room represents the height of affluence in Holland.

The opening was attended by the Dutch Consul who opened the exhibition to the public under a flag of the Netherlands. The Consul made this a part of the opening ceremonies of NY400: Holland on the Hudson, a celebration of 400 years of friendship between New York and Holland. As most people know, New York City started out life as New Amsterdam, and much of New York still reflects this from street names (Gansevoort), to bodies of water (Henry Hudson was the captain of the Dutch ship tat came to what was to become NYC, the Kill Van Kull, etc.).

A picture of Queen Beatrix (who, along with her family, was recently attacked) is near the entrance to the exhibition, and an orange ribbon hangs from the flag, a symbol of loyalty to the Oranges, the surname of the Dutch Royal Family (as in William of Orange).

The exhibition itself features items from upper crust society and similar to those used by royalty. From extravagantly carved chairs to wonderful portraits, and luxury objects, viewers who take the time to closely study the objects will be continually rewarded with new discoveries.


Installation view of the Dutch Treats' Period Room

Visitors to the exhibition are also admitted to see photos from the Waintrob collection which features celebrity photos, some Henry Moore sculptures, and other memorabilia from art world greats such as Calder, and Georgia O'Keefe. Also on view is a display of the architectural history of Snug Harbor.

Mr. Way's exhibition is slated to run through September 27th, 2009 and is open
from Tuesday through Sunday from 10 am through 5 pm. Admission is $3.

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Depression Scares Are Hardly New

"WHAT is the chance that the current downturn will morph into another
Great Depression? That question has been preoccupying people for
months.

The popular mood has a huge impact on the economy, so it’s worth
noting what many people seem to forget: Depression scares come and go.
And by one authoritative measure, the current outbreak of concern has
been surprisingly mild."

From a New York Times article that notes that since 1951, there have been four Depression scares: 1974 to 1975, 1978 to 1982, 1990 to 1992 and the latest 2008 to 2009. Most notably the current scare is not nearly as bad as the ones preceding it.

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Housing, Economic Growth Now Heading to Higher Ground

The nation’s housing industry and the economy have just about
seen the worst of the painful downturn that greatly intensified since
last September’s turmoil in the financial markets, according to
economists speaking on April 23 at NAHB’s Construction Forecast
Conference.

And despite a continuation of rising unemployment well into next
year, although at a slowing pace, housing in this year’s second
half is expected to begin gradually leading the economy to higher
ground, they said.

See the full article at NAHB.

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Dutch Treats: The George Way Collection

Stepping away from our usual real estate fare, I wanted to share with you a very special cultural event. This Thursday night, "Dutch Treats: Highlights from the collection of George Way" will open at the Snug Harbor Cultural Center and Botanical Garden, giving Staten Island and beyond yet another peek at the impressive collection of furniture, paintings and objects d'art that Mr. Way has gathered over the decades.

Those of you not familiar with Mr. Way can find some interesting background from the article entitled "Seats of Power (The Beds, Too)" from 2003 in the NY Times. In short, Mr. Way, an every day Joe who worked at the deli counter of a local Staten Island Pathmark, has created the largest collection of antique English furniture and objects outside of the United Kingdom, a collection he amassed over the last 40 years. Most of it was bought at bargain basement prices, and carried home on the Staten Island Ferry.

Lest you think that this is just another Staten Island vanity project with a few loose items, most of which are younger than most people in New York City, Mr. Way focuses on objects that come from around the 1600s and they are often of better quality than those found in major international collections. Mr. Way has lectured on his holdings at Sotheby's New York, is a former consultant on early furniture to Christie's, and regularly lends out items from his collection to various notable institutions like the Folger Shakespeare Library, and the William Penn Museum.

Mr. Way's previous exhibitions have been exuberantly received and rather captivating. Certainly, it is not every day that you get to see an exhibition that rivals those in the major New York museums here on Staten Island, so go and show your support for a Staten Islander, and if nothing else, marvel at what an every day Joe can accomplish.

The exhibit is slated to run through September 27th, 2009 and is open from Tuesday through Sunday from 10 am through 5 pm. Admission is $3. The last time Mr. Way had an exhibit up at Snug Harbor, he was often seen roaming the exhibit answering questions and talking with interested visitors.

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Video Feature: Voyage on the Staten Island Ferry

Opening night at Landon Nordeman's photography exhibition "Voyage on the Staten Island Ferry" at the Staten Island Museum. The videography in this video is really cool and Landon captures the Staten Island Ferry in a more artistic light, which is refreshing and very creative.

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Market Observation: Consumer Confidence Rises

Photo by bretac on Flickr.

It’s true, the market is on its way up, and if it hasn’t completely bottomed out, it cannot get much worse. Mortgage rates of 4.7%? At these rates, anybody eligible would jump on the opportunity. Based on numerous surveys, people are becoming more confident by adamantly applying for mortgages. In conjunction with the increase in consumer confidence, interest rates are nearing historic lows, and prices have dropped substantially. It would be unrealistic for anyone to think that the economy will continue to drop so drastically, especially since sales and pending sales of homes have increased, and a recent report by NAHB testified that shoppers’ visits to new houses for sale are “on the rise.” Nobody can ever predict the absolute bottom, or the exact top of the market. Now’s the time; things can only get better. In the past, our economy experienced similar signs during a recession before the market made a turn-around. If you have the means, you better hop on the train before it’s too late, because before you know it, the prices of homes will once again sky rocket….

Home Builder Confidence Posts Biggest Gain In Five Years [NAHB]

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Nearly 600,000 have claimed first-time Federal Housing Tax credit

The National Association of Homebuilder's recently revealed that nearly 600,000 have claimed first-time Federal Housing Tax credit. An excerpt from the article:

John and Romy Kohler are first-time home owners, thanks in large part to the $8,000 federal tax credit enacted by Congress as part of the American Recovery and Reinvestment Act.

The credit "was extremely instrumental in us getting our home," says John, who is in management at Chick-fil-A in Bloomington, Ind., where Romy has enrolled in law school at Indiana University. "We couldn't have done it without that."

James and Jennifer Pelton of Lakeland, Fla., and Leslie and Enrique Talavera of Chula Vista, Calif., wouldn't have been able to buy their first homes without the credit, either. They, too, are among the tens of thousands of young families who are taking advantage of the government's latest effort to jump start the economy to become home owners.

The federal credit is available to first-timers who purchase a principal residence this year and close prior to Dec. 1. The credit is equal to 10% of the purchase price, up to a maximum of $8,000, subject to certain income limitations. And as long as you occupy the property as your main home for three years, it need not be paid back.

Consumers can find comprehensive information on the tax credit at www.federalhousingtaxcredit.com.

The Kohlers have been renters since they were married three years ago, and they were "looking to rent again" when they moved to Bloomington so Romy could attend IU. But when they learned that Congress had bumped the tax credit from $7,500 to $8,000 and dropped the requirement that it be paid back so long as they occupy the home as their primary residence for 36 months, they literally jumped at the opportunity.

The Kohlers put up a $6,000 downpayment and paid about $2,000 in closing costs. "But basically we'll get all that back in a few weeks when we receive our tax refund," John points out, "so we'll just about break even."

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5 Foreclosure Scams to Avoid

Given the recent mortgage fraud found on Staten Island, SIREN brings you a summary of an article from Business Pundit blog, which talks about five different foreclosure scams (visit the link for the full article):

1. The Pay Me First Scam

Some foreclosure rescue scammers ask customers to pay them fees in exchange for delaying a foreclosure. It’s actually illegal for foreclosure rescue companies to collect fees before performing a service.

2. The Title Transfer Scam

This scam involves transferring the title of your home to the foreclosure rescue company. This is a very, very bad idea. If your name is not on the title, guess who owns your home? Hint: It’s not you.

3. Sending Mortgage Payments to a Fake Address

Some scammers ask to receive your payment in place of the lender. They claim they have a special relationship with the lender, or can renegotiate your mortgage if you send them payments. This is sketchy, to say the least. One California scammer, for example, made $1.2 million by pretending to be a lender—then fled to his native Mexico.

If someone tells you to ignore your lender letters, or to send the payments somewhere else, run the other direction.

4. Fake Lender Letters

Some fraudsters have taken to forging major lenders’ letterhead and convincing homeowners to sign up for “official” loan modification services. Mail, envelopes, and letterhead may look exactly like the lender’s, but the content will be fraudulent.

5. The Obama Rescue Plan Scam

The Philadelphia Inquirer reports that some rescue companies are charging as much as $3,000 to modify customer loans under the new Obama relief plan. The truth is that you can find out about rescue plan yourself, either online at MakingHomeAffordable.gov, through the Homeownership Preservation Foundation at 995hope.org, or by calling 1-888-995-HOPE

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