Short Sales, Foreclosures and now CRAMDOWNS

Are cramdowns the answer to underwater properties?


WASHINGTON – Sept. 22, 2010 – The rising number of home repossessions could encourage Congress to pass cramdown legislation, something lenders fought vigorously and prevailed against when bankruptcy laws were reformed.

But the cramdown concept has been working successfully in Chapter 12 of the bankruptcy code, which affects farmland.

Cramdowns, or more properly “bifurcation,” divide the value of the debt between that which reflects the current appraised value of the property and that which is now unsecured because the underlying value has declined. The borrower is required to pay the secured portion of the loan and the remainder is treated as unsecured debt – and generally forgiven.

Economists for the Federal Reserve Bank of Cleveland wrote in a research paper that the concept is getting a lot of attention currently since the negative effect of cramdowns in agricultural lending has been minor. Cramdowns succeed in keeping farmers on their properties and banks get what they would have gotten if they had foreclosed.

Source: Universal Syndicate: Lew Sichelman (09/19/2010)

SOLD! - Highest Price in Belle Plaza in more than 15 months

Despite glum reports about the real estate market in the media, I just sold the highest priced unit in Belle Plaza in 15 months...and it was only on the market for 37 days.  People are still willing to pay fair prices for quality real estate, especially when they don't have to go through the trials and tribulations of a short sale.  And it IS possible to get financing.  Take a look at the MLS listing.

View of Biscayne Bay from Belle Plaza

METRORAIL and the ELECTRIC BIKE - A BRILLIANT COMBINATION

So yesterday (DAY 47 without driving by the way!) I had an appointment to get a massage and meet a friend for lunch...in Coral Gables.  (I had TWO closings on Tuesday so I deserved a few hours off).

When I made the plans, I hadn't really considered how I was going to get down there...but I was determined to figure it out.  I figured it was about 10 miles away (so technically I could just make both ways) but it was actually 13.5 each way.And it has been hot and super humid.  And the last thing I wanted to do was actually pedal after eating lunch at the hottest point of the day. 

So I did some research and I was shocked and delighted to find out that you CAN bring a bicycle on the Metrorail.  I went to the Metrorail Website and found this brochure about the Bike and Ride Program:  http://www.miamidade.gov/transit/library/brochure_bike.pdf. 

I was pleasantly surprised that everything worked exactly as it was supposed to.  It's really simple.  You just go to any security office at the Metrorail Station and fill out a Bike and Ride form - it's actually only your name, address and phone number.  Then, they give you a card - that's it!  No cost, no bother. You're supposed to carry it and only need to show it if someone asks.  (Bicycles are also allowed on Metromover and Metrobus - no pass needed).  I also looked up rules for TriRail.  Bicyles are allowed but it prohibits "motorized or powered bicycles".  I wonder how strict they are...

Anyway, I left Belle Isle, rode over the Venetian Causeway to Government Center downtown.  I took the elevator up to the platform, got my pass and then bought an Easy Pass.  Introduced recently, it's good for busses and trains - you put money on it and then just tap it on the turnstile to get in the station...very cool.

When I got on the train, I saw 3 other cyclists with their bikes. I rode down to the station at the University of Miami.  Although several people came up to ask me about the bike (I'm used to this now), the rest of the time I spent returning e-mails on my iPhone.  Then, after the short 15 minute or so ride, I was there!  I then rode to my friends house and got there in the heat of the day without even sweating.

Going home was just as easy.  And actually took me about 45 minutes door-to-door.  The last few times I've made the trip by car it took me about 30 minutes because of traffic.

Anyway, the whole experience was really nice and very convenient.  The combination of having the electric bike and being able to use mass transit REALLY opens up a lot of possibilities...without even breaking a sweat.