As many people know, my family suffered a tragic loss in 2006 with the unexpected passing of our 18-year-old daughter, Kolleen. As a result of Kolleen’s death, many of her close friends became our close friends too, and as a result, part of my immediate and Ralph Roberts Realty family.

One such friend, Mary Kathryn (LaFave) Eckler (a.k.a., MK) and her husband Benjamin, recently graced us with another member of our extended family, Benjamin Dean Eckler, Jr. (pictured here):

While Kolleen’s passing was, and always will be, tragic, it was able to bring together so many wonderful people. From everyone in my immediate family–affectionally known as MaRo and KyRo and KaRo and RaRo–and everyone here at Ralph Roberts Realty, congratulations to Mary Kathryn and Benjamin, Sr. on your new little angel; please continue to share his joy and wonder as he learns and grows (Kolleen would have loved this little 9-pound and 22-1/4 inches long fella as if he were her own, and promptly nicknamed him “BenRo”

Every time the real estate market turns, someone potentially benefits and someone potentially loses out. When property values soar, home owners worry about paying higher property taxes. When values worsen, the end never seems in sight. In the current downturn, the losers are clearly identified as those facing foreclosure or who–because of market, job and credit conditions–feel like they have nowhere else to turn but towards using their house as an ATM machine or selling at a deeply reduced price.

The good news–if you can call it that–is, there are some mighty good deals to be had these days, and one needs to look no further than yesterday’s front page of The Free Press to see what we’re referring to. See the picture of the house below–the one with all the arrows pointing toward it?

Here’s a better picture:

If you had to guess how much this house is selling for–based just on the above image alone–what would you say? $750,000 to $1,000,000? After all, it has:

• 7 bedrooms
• 5 full bathrooms
• 2 half bathrooms
• Living room
• Dining room
• Family room
• Breakfast room
• Florida room / Sunroom
• In-law quarters
• Library
• Partially finished basement

All told, this mansion built in 1905 has over 7,000 square feet (7,187 to be exact), but because of current housing conditions, it is priced to move, and move quickly. Before we tell you the asking price, read the following clip from yesterday’s The Free Press:

Struggling housing market has Detroit’s gems slashing prices

January 19, 2008

BY ZACHARY GORCHOW
FREE PRESS STAFF WRITER

How can you own a house worthy of a millionaire, at a price typical of your standard three-bedroom, two-bath bungalow?

It sounds too good to be true. But in fact, buyers can find scores of historic, large homes available for astonishing bargains — some under $200,000 — in beautiful Detroit neighborhoods, deals that real estate agents say haven’t been this good in decades.

The listings are eye-popping, like the stunning six-bedroom, four-bath, 5,500-square-foot, 1923 colonial in the Boston-Edison neighborhood for $249,500 — about $45 a square foot. Or the five-bedroom, three-bath, 2,700-square-foot colonial in the University District for $149,900. If it’s a Cape Cod you’re eyeing, there’s the seven-bedroom, three-and-a-half-bath, 4,650-square-foot home in Indian Village for $314,999.

But what frustrates real estate agents and owners is the struggle to sell such historic gems — even at these prices. And some have slashed their asking prices by tens of thousands of dollars…

…The real estate market is sluggish everywhere in metro Detroit, and prices have plummeted.
But it’s in Detroit where prices have dropped the most, said Ron Simpson, the outgoing president of the Detroit Association of Realtors… Buyers have long been able to get more house for their money in Detroit than most suburbs, but today’s deals in the city are at “a whole new level,” Simpson said. …

… In the West Village on the city’s east side, when residents learn of someone interested in buying a house in Detroit, they recruit them to their neighborhood by taking them on a one-on-one tour and introducing them to the neighbors, said Bill Swanson, 33, a West Village resident who has conducted some of the tours. Four people have bought homes in the neighborhood in the last year thanks to this effort, Swanson said. “Once you meet people and realize it’s a great neighborhood, it makes buying in the neighborhood really easy,” he said.

Indian Village is another prized area in Detroit. There, a seven-bedroom, six-bath, 7,187-square-foot colonial is listed for $349,995. “A comparable house somewhere else would be millions,” said Joy Santiago, the house’s real estate agent. “It definitely should have gone by now. These are really good prices.”

That’s right… the 7,000+ square foot house referenced above–it’s in the Indian Village section of Detroit–is priced at just $349,995! In many other markets, this historical gem would sell for around $800k to $1 million. Interested in learning more? Here a few additional shots, this time from the interior:

To learn more about this property or others like it, call our office today and ask for Joy Santiago. The office number is (586) 751-0000.

Note: The following was written by Larry Rubinoff, branch manager of a Clearwater Beach, Florida office of Amstar Mortgage.

When you apply for a loan, who takes your application? What role does that person play? Who does the person represent–you or the lender? What’s the difference between a mortgage broker, a loan officer, a loan originator, and a lender? For many consumers, the answers to these questions are a complete mystery.

First, let’s examine the title and the role that each of the various people play in providing mortgage loans:

• Lender: The lender is the person or institution that ultimately provides the money used to purchase the property. In the past, this was typically a bank, credit union, or savings and loan (S&L) that loaned out money that was deposited by its customers. Now, the term “lender” can also be applied to investors who purchase securities backed by mortgages.
• Mortgage broker: A mortgage broker is a person who acts as a middleman between the lender and the borrower. The mortgage broker typically has a selection of mortgages from a variety of lenders to offer to clients. The primary job of the mortgage broker is to match the borrower to a lender whose guidelines fit the borrower’s situation. The broker takes your loan application, gathers essential documents (such as tax returns and paycheck stubs), structures the loan, and then presents it to a lender. If the borrower accepts the terms of the loan as offered by the lender, the borrower is then dealing through the mortgage broker with the lender. The mortgage broker is paid on commission that can come either from the borrower, the lender or both, but the broker is expected to help borrowers secure mortgage loans that best meet their needs and are affordable. Mortgage brokers are also called loan officers, although loan officers are not always brokers.
• Loan officer: A loan officer takes your loan application, gathers essential documents (such as tax returns and paycheck stubs), structures the loan, and then presents it to the lender that they work for. A loan officer is “usually” an employee of a bank, savings and loan, or other lending institution. The loan officer is also paid a commission that can come from either the borrower, their employer/lender, or both, the same as the mortgage broker.
• Loan originator: Anyone who takes your application and advises you on your mortgage loan is a loan originator, even if the institution for which the person works allows them to “broker” the loan to another lender and even if the person is a licensed mortgage broker. The term “loan originator” is a more generic term for mortgage broker and loan officer.

Note: Mortgage brokers, loan officers, loan originators, and all salespeople, for that matter, who achieve long-term success are dedicated to serving the needs of their clients. The people who cause problems are the ones who typically enter the industry for short-term gain.

Although loan originators may, in some circumstances, (this can vary by state) have a fiduciary responsibility to the lenders who supply the products (mortgages) they sell, to be successful, they need to provide their clients (the borrowers) with affordable mortgages that best meet their needs and qualifications. When they achieve this goal, everyone wins–the lender, the borrower, and the loan originator.

Borrowers often become confused, because well-intentioned “experts” provide them with the wrong advice. These “experts” often offer misleading suggestions such as the following:

• “Go to the loan officer not to the broker”
• “The broker can serve you better then the loan officer”
• “Go to your bank not the mortgage broker”

The fact is that titles matter very little. A mortgage broker who has access to a diversity of mortgage loans may be able to give you a much better deal than your local bank is offering. A highly qualified loan officer may be more knowledgeable than a particular broker. As a consumer, you need to pick the individual whom you trust and with whom you feel most comfortable. Ask friends, family members, and colleagues for recommendations. Interview at least three loan originators and check their references. Don’t worry so much about the person’s title.

Too often in our society we rely on a person’s title alone to indicate competence. This is not a useful approach with all professionals whose services you seek.

You also have the right to seek legal advice during the entire process and be represented by an attorney (whose competence you have verified, as well). You need not only take the word of the lender, loan officer, loan originator or mortgage broker. Caveat emptor! (Buyer beware!)