Tuesday, December 13, 2011
Monday, December 5, 2011
Saving Money with Salvaged Building Materials
Salvaged building materials allow you to improve your home inexpensively—but might require an extra investment of time and energy.
Recycled building materials are getting easier to find
According to the Building Materials Reuse Association, recycling is becoming more common in the construction industry. That means reclaimed building elements like doors, windows, plumbing fixtures, and wood flooring are increasingly easy to find.
Habitat for Humanity’s nationwide chain of ReStores sells recycled items, and many cities have architectural salvage yards. Online, neighbors advertise unwanted items on community bulletin boards, such as Craigslist, and national directories of recycled materials, such as EcoBusinessLinks, can be great sources for hard-to-find elements. And the price is right: reused pieces can be 50% to 75% cheaper than their new counterparts.
Searching for salvaged materials
Sounds terrific, right? But it’s not that simple. Using recycled building elements is like shopping at a thrift store: You can’t be certain you’ll find exactly what you’re looking for. Anyone interested in a good deal to spruce up their home—an ornate wood mantelpiece or a set of Victorian doors, for example—has to be willing to compromise on some of the details and commit some time to the endeavor.
If you live in or near a city and have access to a salvage yard, you’re in luck. Many receive multiple new shipments daily, and some, such as Seattle’s Second Use, post their offerings online.
But in most cases, there’s no substitute for regularly showing up in person to check out what’s available. If you’ve got something particular in mind, plan on spending a few afternoons at the salvage yard trying to track down what you’re looking for. The same is true if you’re exploring online: locating the right piece may take longer than you’d expected.
Before beginning your search, make sure you’ve got measurements in hand. It’s useful if you can allow for some wiggle room: unlike big home improvement stores, the items on sale are usually one-of-a-kind pieces. So while a recent truckload might have dropped off a beautiful old mantelpiece, the size might not be an exact fit; know in advance if you can manage with a slightly larger or smaller size.
Dealing with lead paint
Some old items need to be treated with serious care. Ruthie Mundell of Community Forklift, a salvage yard in Edmonston, Md., says that the staff tries to flag items that appear to be lead paint hazards–that is, anything painted prior to 1978, when the Consumer Product Safety Commission (CPSC) banned lead in paints.
Nevertheless, buyers of old painted items need to be aware of the potential hazards. Older paint doesn’t mean the pieces are unusable, but the paint must be thoroughly removed or sealed—never scraped or sanded. The CPSC offers guidelines for treating lead paint in the household.
Finding savings
Some salvaged pieces are better deals than others. The best is often flooring: careful shoppers can find used floor boards from quality old wood that’s difficult to come by these days. Sat Jiwan Ikle-Khalsa, a green living consultant in Takoma Park, Md., scoured a local salvage yard and found maple, white oak, and rare heart pine flooring at a low price for his renovated 1940s-era home. He estimates he saved more than $2,000 over the cost of new flooring.
Other useful finds are doors, particularly those already on a frame, and plumbing elements. Antique light fixtures can be a great bargain, but check whether they’ve been recently rewired before you buy; otherwise, you may have to do it yourself, or pay an electrician for the service.
Windows are common, but many older widows are single-pane and not energy efficient. These are better used for interior walls to add light and air flow between rooms. Stained glass panels are relatively common at salvage yards and cost from $50 to $500.
Sample price comparisons for various salvaged materials
Salvaged oak flooring: $1 to $3 per sq. ft.
New oak flooring: $4 to $10 per sq. ft.
Average savings for 12×16-foot room: $960
Salvaged interior solid panel door (basic): $20 to $50
New interior panel door: $100 to $200
Average savings: $115
Secondhand pedestal sink: $20 to $250
New pedestal sink: $100 to $800
Average savings: $315
Recycled crown molding: $.30 to $1 per lineal ft.
New crown molding: $.90 to $3 per lineal ft.
Average savings for 12×16-foot room: $72.80
Don’t forget to add in transportation costs. Not all salvage yards deliver, and those that do aren’t necessarily cheap: the cost of getting materials across town could be $100 or more. It might make more sense to borrow or rent a truck on your own.
The value of salvage building components
Salvaged elements may not add to a home’s appraised value, according to Chicago appraiser Tim McCarthy, president of T.J. McCarthy and Associates. An appraiser probably won’t include a home’s reclaimed heart pine beams in the kitchen or the bathroom’s antique plumbing fixtures when calculating the house’s value.
But that doesn’t mean the seller can’t use those amenities as selling points and boost the asking price accordingly. “It’s very market-specific,” McCarthy says. In higher-end neighborhoods, homebuyers may be willing to pay more for authentic elements that give a house personality.
McCarthy recommends talking with a local realtor before making changes; they’ll have a good sense of the housing market’s current demands and should be able to tell you whether a vintage element will boost your home’s market value.
Working with salvage
To effectively integrate salvaged items, Arne Mortensen, owner of Mortensen Design/Build in Seattle, recommends choosing a contractor who has a particular interest and experience in working with recycled building materials. Salvage yard staffs may be able to recommend someone; other sources for ‘green’ contractors include online sites like Angie’s List.
Nonetheless, the time-consuming legwork of finding good pieces generally falls to the homeowner. To make the process easier, spend time thinking about and researching online what you want before you begin to shop. And be prepared to be persistent; happy hunting takes patience.
Recycled building materials are getting easier to find
According to the Building Materials Reuse Association, recycling is becoming more common in the construction industry. That means reclaimed building elements like doors, windows, plumbing fixtures, and wood flooring are increasingly easy to find.
Habitat for Humanity’s nationwide chain of ReStores sells recycled items, and many cities have architectural salvage yards. Online, neighbors advertise unwanted items on community bulletin boards, such as Craigslist, and national directories of recycled materials, such as EcoBusinessLinks, can be great sources for hard-to-find elements. And the price is right: reused pieces can be 50% to 75% cheaper than their new counterparts.
Searching for salvaged materials
Sounds terrific, right? But it’s not that simple. Using recycled building elements is like shopping at a thrift store: You can’t be certain you’ll find exactly what you’re looking for. Anyone interested in a good deal to spruce up their home—an ornate wood mantelpiece or a set of Victorian doors, for example—has to be willing to compromise on some of the details and commit some time to the endeavor.
If you live in or near a city and have access to a salvage yard, you’re in luck. Many receive multiple new shipments daily, and some, such as Seattle’s Second Use, post their offerings online.
But in most cases, there’s no substitute for regularly showing up in person to check out what’s available. If you’ve got something particular in mind, plan on spending a few afternoons at the salvage yard trying to track down what you’re looking for. The same is true if you’re exploring online: locating the right piece may take longer than you’d expected.
Before beginning your search, make sure you’ve got measurements in hand. It’s useful if you can allow for some wiggle room: unlike big home improvement stores, the items on sale are usually one-of-a-kind pieces. So while a recent truckload might have dropped off a beautiful old mantelpiece, the size might not be an exact fit; know in advance if you can manage with a slightly larger or smaller size.
Dealing with lead paint
Some old items need to be treated with serious care. Ruthie Mundell of Community Forklift, a salvage yard in Edmonston, Md., says that the staff tries to flag items that appear to be lead paint hazards–that is, anything painted prior to 1978, when the Consumer Product Safety Commission (CPSC) banned lead in paints.
Nevertheless, buyers of old painted items need to be aware of the potential hazards. Older paint doesn’t mean the pieces are unusable, but the paint must be thoroughly removed or sealed—never scraped or sanded. The CPSC offers guidelines for treating lead paint in the household.
Finding savings
Some salvaged pieces are better deals than others. The best is often flooring: careful shoppers can find used floor boards from quality old wood that’s difficult to come by these days. Sat Jiwan Ikle-Khalsa, a green living consultant in Takoma Park, Md., scoured a local salvage yard and found maple, white oak, and rare heart pine flooring at a low price for his renovated 1940s-era home. He estimates he saved more than $2,000 over the cost of new flooring.
Other useful finds are doors, particularly those already on a frame, and plumbing elements. Antique light fixtures can be a great bargain, but check whether they’ve been recently rewired before you buy; otherwise, you may have to do it yourself, or pay an electrician for the service.
Windows are common, but many older widows are single-pane and not energy efficient. These are better used for interior walls to add light and air flow between rooms. Stained glass panels are relatively common at salvage yards and cost from $50 to $500.
Sample price comparisons for various salvaged materials
Salvaged oak flooring: $1 to $3 per sq. ft.
New oak flooring: $4 to $10 per sq. ft.
Average savings for 12×16-foot room: $960
Salvaged interior solid panel door (basic): $20 to $50
New interior panel door: $100 to $200
Average savings: $115
Secondhand pedestal sink: $20 to $250
New pedestal sink: $100 to $800
Average savings: $315
Recycled crown molding: $.30 to $1 per lineal ft.
New crown molding: $.90 to $3 per lineal ft.
Average savings for 12×16-foot room: $72.80
Don’t forget to add in transportation costs. Not all salvage yards deliver, and those that do aren’t necessarily cheap: the cost of getting materials across town could be $100 or more. It might make more sense to borrow or rent a truck on your own.
The value of salvage building components
Salvaged elements may not add to a home’s appraised value, according to Chicago appraiser Tim McCarthy, president of T.J. McCarthy and Associates. An appraiser probably won’t include a home’s reclaimed heart pine beams in the kitchen or the bathroom’s antique plumbing fixtures when calculating the house’s value.
But that doesn’t mean the seller can’t use those amenities as selling points and boost the asking price accordingly. “It’s very market-specific,” McCarthy says. In higher-end neighborhoods, homebuyers may be willing to pay more for authentic elements that give a house personality.
McCarthy recommends talking with a local realtor before making changes; they’ll have a good sense of the housing market’s current demands and should be able to tell you whether a vintage element will boost your home’s market value.
Working with salvage
To effectively integrate salvaged items, Arne Mortensen, owner of Mortensen Design/Build in Seattle, recommends choosing a contractor who has a particular interest and experience in working with recycled building materials. Salvage yard staffs may be able to recommend someone; other sources for ‘green’ contractors include online sites like Angie’s List.
Nonetheless, the time-consuming legwork of finding good pieces generally falls to the homeowner. To make the process easier, spend time thinking about and researching online what you want before you begin to shop. And be prepared to be persistent; happy hunting takes patience.
Tuesday, November 15, 2011
Inspector General bashes TARP Program
By Steve Beede,
Through the 2009 Troubled Asset Relief Program (”TARP”), the American taxpayers invested hundreds of billions of dollars in hundreds of financial institutions, the auto industry, and certain markets for asset-backed securities. To oversee this, Congress established a Special Inspector General as a watchdog to protect those investments and report on their performance. In practice, this has meant prosecuting those financial institutions that commit crimes involving TARP funds and to make recommendations to the Department of Treasury.
For real estate owners, the TARP monies fund the HAMP loan modification program, HAFA short sale/Deed in Lieu program, and the HARP refinance Progam, plus many other programs. On October 27, 2011, the Special Investigator released a 306 page Quarterly Report to Congress which unveiled several important facts affecting the real estate industry:
1) Only $2.5 billion - or 5.4% 0 of the $45.6 billion in TARP funds earmarked for housing support programs has been spent. Calling the lender participation in the HAMP program “disappointing”, the Report indicates that as many as 600,000 eligible homeowners will be left out. For those who have been struggling with getting lenders to respond to their HAMP applications, this Report suggests that the problem was in part a lack of willingness of the government to push the lenders to act. The Inspector General made four recommendations to Treasury to improve servicer performance which could keep more people in their homes. Treasury has refused to act on any of the recommendations. As stated in the Report, “Treasury is giving up a chance at meaningful change and sadly, it is struggling homeowners who have the most to lose”.
2) The lenders who received the TARP bailout money are required to particpate in these housing programs. Given the huge number of homeowner complaints the Investigator has received, the Special Investigator urged Treasury to set benchmarks for servicer performance and to impose fines and withhold payments to violators. However, Treasury is leaving it up to the lenders to voluntarily comply and refuses to compel the lenders to do so. As the Report points out, “Compliance with program guidelines is not, and must not, be voluntary”.
3) As of September 1, 2011, the 20 largest loan servicers (including BofA, Chase, Wells Fargo, and Ocwen) are required to designate a Single Point of Contact. The single point of contact, referred to as the “relationship manager,” will have the sole primary responsibility for communicating with the borrower (or the borrower’s authorized advisor) about options to avoid foreclosure, his/her status in the process, coordination of receipt of documents, and coordination with other servicer personnel to promote compliance with timelines and requirements. This single relationship manager will be responsible for managing the borrower relationship throughout the entire delinquency or imminent default resolution process, and if the loan is subsequently referred to foreclosure, must be available to respond to borrower inquiries regarding the status of the foreclosure. The relationship manager’s proactive responsibilities end when a homeowner completes a loan modification or when all loss mitigation actions have been exhausted.
4) Many homeowners are denied a HAMP modification because they fail the “Net Present Value” (NPV) test. The NPV test is used to enable investors to determine whether they would recover a better value from modifying the loan or from foreclosing. This has caused great confusion and questioning as to what data was used for the test. Now homeowners can run this test themselves online at www.CheckMyNVP.com. This can be used to check data after an NVP denial or even before applying for HAMP.
There is a lot more information within the pages of the Report which I’ll be sharing in subsequent postings. In the meantime, if you have been wrongly denied a loan modification or other relief allowed under the TARP program, contact your Representative or Senator and demand that they take action to compel lenders to comply with TARP requirements. Otherwise, at least 600,000 more homeowners are likely to lose their homes.
If you are a California property owner, consider our $200 Attorney Consult program that will help you determine all of your options and choose the best strategy to enable you to move forward as intact as possible. To learn more, contact me at sjbeede@bpelaw.com or call us at 916 966-2260.
The information presented in this Article is not to be taken as legal advice. Every persons situation is different. If you are upside-down on your loan(s), especially if you’re facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.
Through the 2009 Troubled Asset Relief Program (”TARP”), the American taxpayers invested hundreds of billions of dollars in hundreds of financial institutions, the auto industry, and certain markets for asset-backed securities. To oversee this, Congress established a Special Inspector General as a watchdog to protect those investments and report on their performance. In practice, this has meant prosecuting those financial institutions that commit crimes involving TARP funds and to make recommendations to the Department of Treasury.
For real estate owners, the TARP monies fund the HAMP loan modification program, HAFA short sale/Deed in Lieu program, and the HARP refinance Progam, plus many other programs. On October 27, 2011, the Special Investigator released a 306 page Quarterly Report to Congress which unveiled several important facts affecting the real estate industry:
1) Only $2.5 billion - or 5.4% 0 of the $45.6 billion in TARP funds earmarked for housing support programs has been spent. Calling the lender participation in the HAMP program “disappointing”, the Report indicates that as many as 600,000 eligible homeowners will be left out. For those who have been struggling with getting lenders to respond to their HAMP applications, this Report suggests that the problem was in part a lack of willingness of the government to push the lenders to act. The Inspector General made four recommendations to Treasury to improve servicer performance which could keep more people in their homes. Treasury has refused to act on any of the recommendations. As stated in the Report, “Treasury is giving up a chance at meaningful change and sadly, it is struggling homeowners who have the most to lose”.
2) The lenders who received the TARP bailout money are required to particpate in these housing programs. Given the huge number of homeowner complaints the Investigator has received, the Special Investigator urged Treasury to set benchmarks for servicer performance and to impose fines and withhold payments to violators. However, Treasury is leaving it up to the lenders to voluntarily comply and refuses to compel the lenders to do so. As the Report points out, “Compliance with program guidelines is not, and must not, be voluntary”.
3) As of September 1, 2011, the 20 largest loan servicers (including BofA, Chase, Wells Fargo, and Ocwen) are required to designate a Single Point of Contact. The single point of contact, referred to as the “relationship manager,” will have the sole primary responsibility for communicating with the borrower (or the borrower’s authorized advisor) about options to avoid foreclosure, his/her status in the process, coordination of receipt of documents, and coordination with other servicer personnel to promote compliance with timelines and requirements. This single relationship manager will be responsible for managing the borrower relationship throughout the entire delinquency or imminent default resolution process, and if the loan is subsequently referred to foreclosure, must be available to respond to borrower inquiries regarding the status of the foreclosure. The relationship manager’s proactive responsibilities end when a homeowner completes a loan modification or when all loss mitigation actions have been exhausted.
4) Many homeowners are denied a HAMP modification because they fail the “Net Present Value” (NPV) test. The NPV test is used to enable investors to determine whether they would recover a better value from modifying the loan or from foreclosing. This has caused great confusion and questioning as to what data was used for the test. Now homeowners can run this test themselves online at www.CheckMyNVP.com. This can be used to check data after an NVP denial or even before applying for HAMP.
There is a lot more information within the pages of the Report which I’ll be sharing in subsequent postings. In the meantime, if you have been wrongly denied a loan modification or other relief allowed under the TARP program, contact your Representative or Senator and demand that they take action to compel lenders to comply with TARP requirements. Otherwise, at least 600,000 more homeowners are likely to lose their homes.
If you are a California property owner, consider our $200 Attorney Consult program that will help you determine all of your options and choose the best strategy to enable you to move forward as intact as possible. To learn more, contact me at sjbeede@bpelaw.com or call us at 916 966-2260.
The information presented in this Article is not to be taken as legal advice. Every persons situation is different. If you are upside-down on your loan(s), especially if you’re facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.
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