Home Financing Mortgage Scams

August 31, 2007 By

A few days ago, Michelle Singletary of the Washington Post wrote an op-ed piece entitled “A 400 Percent Return in 7 Days? Riiiight.” After briefly discussing the difference between pyramid promotions – which are illegal – and multilevel marketing schemes – which are not, Singletary moves on to describe a suspicious meeting she recently sat in on.

The speaker was a representative of Financial Independence Group, a multilevel marketing scheme that preys on homeowners. Basically, you have to pay to join, but you have the potential to earn 400 percent of your initial membership fee if you can convince five more people to join…and if two of those five refinance their homes through Financial Independence.

Of course, Singletary did some snooping around, and found out some things that seemed rather suspicious. For instance:

  • Financial Independence claims not to be a mortgage broker, yet they send out applications requiring employment history and other information needed to process a loan.
  • Financial Independence’s application also requires a $425 application fee!
  • Members are encouraged to dunk their home equity into risky investments.
  • Members can also earn “by giving wealth-building presentations.” (Read: by deluding other homeowners.)
  • In order to find out more about membership, you have to become a member.
  • The company has supposedly been in business for 10 years, yet Singletary couldn’t find any record of the company earlier than 2006.
  • Although Financial Independence’s purpose is supposedly to provide financial advice to members, they refused to give Singletary the names and credentials of their financial advisors.
  • In fact, every time Singletary asked for more specific information about the company, her questions were sidestepped or outright refused.

Reading this article, it is obvious how important it is for homebuyers and homeowners to know what to look for in a mortgage broker. As with any business that has the potential for lots of money, scams abound, and it is far too easy to get taken advantage of.

Here are a few ways to protect yourself from dishonest mortgage schemes and services:

  • Always make sure the person you are giving your information to is licensed, whether they are a mortgage broker or a loan originator.
  • Always check all the details of the deal you are being offered. If the mortgage broker sidesteps your question or redirects your attention to how happy the new loan is going to make you, get out fast!
  • Avoid anything with an abnormally high price tag, such as home-buying seminars, membership applications, and financial “advice.”
  • Always check brokers or other businesses out with the Better Business Bureau before committing to anything. Often even a simple Google search can dig up dirt on a shady company.

Whether you are buying a new home or refinancing an old one, doing your homework can help you make sure that you never get “taken” by an unscrupulous mortgage broker!

Thank you to Logan Chierotti, from www.ColoradoHomeHelper.com, for contributing this blog post.

Filed Under: Mortgage Information

Bryant on Columbus

August 30, 2007 By

According to inside sources, the Bryant on Columbus at 303 Columbus Avenue (Google Map) on the border of Boston’s Back Bay and the South End has poured its first concrete wall as part of its underground parking garage. According to construction sources, we should begin to see part of the structure rise out of the ground within the next few months. We have the below exclusive construction photos.

The Bryant is scheduled for a June 2008 completion, however, looking at the difference in progress between the Bryant and other similarly scheduled developments (i.e. the Mandarin Oriental, FP3 Boston), the Bryant has to pick up the pace. For preconstruction pricing, or to make a reservation for a unit at any of the above-mentioned condo developments, please contact us.

Bryant on Columbus

Bryant on Columbus

Bryant on Columbus

Filed Under: South End Condos Tagged With: , , , ,

City Center Condo Prices Buck Trend

August 29, 2007 By

In a Wall Street Journal article today entitled ‘Steep Home-Price Drop Stirs Fears’, Kelly Evans finally spent some time covering the concept that all of the press, statistics, and news that continue to hit the market regarding housing prices across the country may not be entirely applicable to city centers such as New York and Boston.

Notably, the S&P/Case-Shiller survey found that prices in the New York City metropolitan area declined, even though most local real-estate agents say prices for expensive condominiums in Manhattan continue to surge. There are two explanations for the difference. First, the S&P/Case-Shiller survey covers only single-family homes, not condominiums and cooperatives, which dominate the Manhattan market. Also, while prices are still rising in parts of the city, they are starting to decline in the suburbs.

Sound familiar? Oddly enough (sarcastically), Boston (proper) is mainly composed of condominiums, and when we speak about housing statistics (at least on this blog), we are speaking about the city center, as opposed to the suburbs (or including the suburbs).

“There’s a divergence between what’s going on with suburban homes and the apartment/condo market in the city center,” said Standard & Poor’s Vice President and index committee member Maureen Maitland.

As we have stated before, it is indeed fair to be somewhat critical of broad market assertions about prices, as the unique circumstances of downtown / city center living, is not often portrayed accurately – even by Boston Globe reporters and others who seem to continue to concentrate on state-level information that does not represent the true story of the Boston condo market.

Filed Under: Boston Condo Statistics

Boston W Hotel and Condos

August 28, 2007 By

For more recent articles on the Boston W Hotel & Condos, click on the Boston W Hotel Condos tag above.  Additionally, now that the sales center is open, contact us for more information about setting up an appointment.

Just when you thought (or rather, you are being fed the message by the popular press) that the housing market is in a downturn, Boston goes and breaks ground on a $200 million development that will change the skyline of the Theater District, and inject true upscale class and style in living accommodations for visitors and residents of Boston.

[Read more…]

Filed Under: Midtown Condos Tagged With: , , ,

The Dumpsters Are Gone

August 27, 2007 By

The last of the dumpsters outside the new D4 Condo Development at 7 Warren Avenue in the South End have been removed. Construction has taken one of the landmark properties in the South End, the former D4 Police Station, and converted it into a 26-unit boutique luxury condo development.

D4 Condos

There are currently 8 units remaining at D4 for sale, including 2 and 3 bedroom units, starting at $1 million. For more information, please contact us.

Filed Under: South End Condos Tagged With: , , ,

US Condo Downturn Troubles Lenders and Developers

August 26, 2007 By

The Wall Street Journal reported this weekend that in cities across the US, namely Miami, instances of foreclosure and condo development bankruptcy are increasing. The problems are emerging as some buyers who signed contracts to by new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market. Falling prices are forcing appraisals down, so banks aren’t willing to lend the full amounts that people committed to in the sale contract.

Boston appears to be bucking that trend slightly, or at least serving up a different flavor of the same end result. Consider that Bostonians continue to lay down large deposits on units in condo developments that are far off on the horizon, with what on the surface, appears to be little to no concern over obtaining financing when the occupancy date approaches, and final checks have to be written (take for instance the Mandarin Oriental, which is practically 100% sold, and will not open until June 2008, as well as 45 Province, which is on track for a 2009 completion, but is experiencing strong sales, and large deposits, thus far).

Where condo developments seem to be experiencing issues in Boston is not so much on the consumer financing end, or consumer demand for that matter, but on construction costs that have increased to levels that do not allow developers to turn a profit on making the project a reality. Take for instance, Columbus Center, which was approved years ago, but has not broken ground due to rising construction costs that erode project profit potential, the Broadluxe that is currently foreclosed upon by TD Banknorth for various construction cost related issues, the original Channel Center effort that saw a whole block purchased by a developer, only to see a small portion of the area developed, or perhaps most recently, the announcement that East Pier (Portside at Pier 1) in East Boston may flounder because developers anticipate not obtaining the profit levels for which they had hoped.

However, a broad brush stroke story on the state of the entire US provides little insight into the local market here in Boston. Despite the four above-mentioned condo development projects experiencing issues, be that temporary or permanent, construction still continues and will continue. Take for example The Clarendon and Russia Wharf (to name only two), both of which have recently broke ground on new construction in the Back Bay and on the Waterfront respectively.

With the little consistency that is seen (or unseen) in even the Boston market, it leads one to question whether the failure of certain condo development projects in the city are simply a result of particular developers seeking to take advantage of the demand from three to four years ago (the time when planing and permitting took place) , and a lack of planning and foresight to build proper safeguards into their projects.

Filed Under: Boston Condos Tagged With: , , , , , , ,

Cheapest Condo in the North End

August 25, 2007 By

The North End, one of Boston’s most historically and culturally rich neighborhoods of downtown Boston is currently host to a $220,000 450 square foot condo.  Unit 9 at 181 Salem Street is the cheapest condo for sale in the North End currently.  For more information, please contact us using thel ink at the top of this page.

Filed Under: North End Condos Tagged With: ,

65 Broad Street Condo Update

August 23, 2007 By

There’s been some buzz around what is available at 65 Broad Street in the Financial District over the last week, with only two units remaining in the building in this 5-unit development (6 units including the commercial space on the ground floor).

Units 4 and 5 remains and is priced at $399K for 632 square feet. Both of these units do not have the large floor to ceiling windows that you get in units 2 and 3. However, the units have nice finishes, and once the Broadluxe gets their act together, Broad Street will be stocked with new developments (65 Broad Street, Folio Boston, and Broadluxe all within a few hundred yards of each other).

Note in the exclusive photo below that the developer has completely remodeled the lower facade of the building, adding some well-needed class to the development with the wood paneling that was chosen.

For more information on the units at 65 Broad Street (Google Map), please contact us.

65 Broad Street Lofts

65 Broad Street Condos

Filed Under: Financial District Condos Tagged With: , , ,

321 Contact

August 22, 2007 By

We’ve previously written about the transition in South Boston condos, the choices are now abundant for high-end, new construction. 321 West Second (located at 321 West Second Street in South Boston) is a 15-unit development that offers wall to wall windows and a high-end look and feel, accompanied by secured garage parking.

There are currently 5 units remaining in the development, a single one-bedroom one-bathroom unit for $429K (863 square feet), while the remaining units are all two-bedroom two-bathroom units that range from $529K to $739K (1,206 – 1,563 square feet).

To setup a showing and speak more about the benefits of buyer representation for 321 West Second, and any other development in Boston, contact us.

321 West Second Condos

Filed Under: South Boston Condos Tagged With: , ,

We Will Buy Your Boston Loft

August 21, 2007 By

Here’s your chance to make a quick sale of your Boston loft. We have clients who are both interested and motivated to purchase your Boston loft-style condo. If your loft meets the following criteria, we’d love to hear from you.

  • South End, South Boston (close to Broadway T-Stop), Seaport District, Leather District
  • Two-bedroom, or capable of easily being converted into a two-bedroom
  • 1,200 + square feet
  • Attached (garage or adjacent lot) parking included – no rental lots half a block away
  • Exposed brick and beam – we’re looking for some character
  • Recent construction or renovation

If your loft fits the criteria, and you are interested in selling, we may have a buyer for you –  please contact us.

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Filed Under: Boston Condos Tagged With:
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