REALonomics.net advocates that the industry open up the property information portals to consumers and upgrade its approach to how it is interacting with the consumer by implementing more social networking such as www.CityBlogUSA.com, a community blogging network for every city in the USA.

Visit www.REALonomics.net.

Bellevue’s newest blog is hardly a blog at all BloggingInBellevue.com is a city-centric social networking platform allowing community members to voice concerns, raise awareness, meet neighbors and influence opinions. The site is allowing users to create groups, invite friends, upload pics/videos, and offer suggestions for improving the site.

Log onto www.BloggingInBellevue.com for more details.

Linda quickly befriended Ms. Wang and began showing her homes in Bellevue, and in time, she convinced her to buy a home in the Somerset neighborhood. Apparently that particular home was already under contract and was being sold to Linda’s boyfriend, Charles Monson. Charles was unable to acquire financing and was in danger of losing his $5,000 earnest money. Ms. Wang was convinced the home was a good buy and a solid investment.

Ms. Wang decided to purchase the home and told Linda she wanted to pay cash for the home. Linda quickly told her that would be a mistake because in our country it’s always wise to “build credit” and it would be better to put 50% down, and borrow the rest; naturally Linda new the perfect mortgage officer for Ms. Wang to use. Linda took her to meet Leo Chan at New World Mortgage and he proceeded to prepare the loan docs for her. Shortly thereafter Ms. Wang went to closing at Leo’s attorney’s office in Seattle and signed all closing docs there. Linda acted as a translator for her.

Several months later a friend of Ms. Wang’s was reviewing the loan documents for her. Some of the docs didn’t make sense when compared to the payment statements being sent from the lender. Upon review it was apparent that Leo Chan (aka: Chin Chui Ming) had in fact stolen $88,000 of the $200,000 given as a down payment. Leo, with the watchful eye of Linda had Ms. Wang sign documents that did the following:

1. Placed a lien on her home by Leo Chan that obligated her to pay him $200,000.
2. Surrender the $88,000 to him (in addition to the 200k debt).

Upon discovering all of this, Ms. Wang sought out an attorney to file suite against Mr. Chan. She spoke with Michael D. Brandt of Durham Brandt (currently Brandt Law Group). Brandt assured her it was not difficult to show what Mr. Chan had done, and took the case. She was told it would likely cost only a few thousand if Mr. Chan settled quickly, which it was believed he likely would.

Mr. Brandt did quickly procure an offer to settle from Leo Chan, but with the stipulation that he be allowed to pay over time and with interest. Mr. Brandt didn’t feel that was an acceptable option due to the amount of money owed and the payment being offered was only $1,000 per month. Mr. Brandt felt that it would be better to sue the real estate company, the attorney that closed the sale, and Mr. Chan. All being insured, he felt it could be settled quickly. Ms. Wang was assured legal fees are recoverable in Washington State; Mr. Brandt estimated the cost to be around $40,000.

Within just a few months the legal bills which were being paid by Ms. Wang had exceeded $40,000 and no settlement was on the horizon. On two occasions Ms. Wang was contacted and told that thousands in legal fee’s needed to be paid by that Friday in order for Mr. Brandt to make payroll.

After more than two years of litigation the fees had totaled almost $100,000 to collect $86,000! Not one dime had ever been collected for the victim, and she was now out $188,000 dollars. The American dream had become a nightmare. As the trial date approached all parties attended the required mediation hearing; Ms. Wang of course had to pay $1,000 in advance for this privilege.

Half a day was spent haggling back and forth with the attorney’s for the insurance companies, and by the end of the day Michael Brandt felt she should take the settlement since she had run out of money and he was no longer sure all parties would be found liable under Washington Law. Mr. Chan’s Bond was only $40,000 and that’s all that could be recovered from him. He had no money, no assets, and his company was broke. He had lost all pf Ms. Wang’s money on the stock market.
Mr. Chan had to be taken back to court for an enforcement of judgment to remove the fictitious liens from her Somerset home.

After almost three years of litigation:

Mr. Chan walked away without personally paying Ms. Wang a dime.

Ms. Wang’s attorney Michael D. Brandt walked away with over $100,000.

Linda (the agent) kept her full $15,000 commission.

Attorneys for the three insurance companies undoubtedly made a small fortune from the years of litigation for the case.
Ms. Wang after expenses netted approximately $15,000 towards her damages.

Most recently Ms. Wang received a bill from a collection agency working on behalf of Michael D. Brandt for unpaid bills. Yes indeed, it would appear that she still owed an additional $3,600 to his new law firm from the case. She had no choice but to pay it; she was told that if she refused to pay it a lien would be placed on her home, her accounts would be frozen, and she would incur thousands in additional legal fees for the collection efforts.

Welcome to America Ms. Wang.

Doc related to Leo Chans 10 year Ban from the industry

Obviously as agents many are being asked to list homes at absurd prices that do not accurately reflect the marketable value of the home at the time of the listing. I view it as seller’s denial. Apparently some people out there feel they still hold a lottery ticket that will enable them to reap huge profits in a short amount of time. Because of that belief, they still want to list their homes at dream prices in hopes they can cash in on the sales frenzy of yesteryear.

All this has accomplished (because their certainly not getting those crazy prices) is that buyers out there are lead to believe the market is crashing. I recently received an email from a client that has been looking at homes and she said she wanted to wait until next year when prices have stopped tumbling downward. Her belief this was happening is based on the fact that homes she has viewed now reflect price reductions of up to $65,000 shortly after hitting the market. Also many homes that the MLS list as Sold are showing accepted offers 25k under asking and often more.

I really don’t see this as a market crash, but more of a reality check. If you list a home, and then two weeks later drop the price sixty five thousand, then I suggest you listed it absurdly overpriced to begin with. I tell my clients if you put a crazy price on your house it will not sell, it’s that simple.

I realize we can’t control what people ask for their homes, but we can educate them, and when necessary decline the listing. We are doing them no favors by listing the home at a crazy price to appease them (knowing it won’t sell), and then dropping the price drastically once they realize we were correct in our assessment. We are in fact creating an illusion of a market crash.

I recently had a client that wanted to list her home $50,000 more than it was actually worth. I suggested we get an appraisal to support the price and she declined. She then went forward and listed it at an appropriate price. It hurts the entire market when we inflate the listing price and then tumble it down in a couple of weeks; or do so knowing it will likely sell for an offer that’s considerably less and more appropriate.

But, that just my opinion.

SAN FRANCISCO (Reuters) - While California suffers in the housing crisis, the economy of nearby Washington state is flourishing with strong job growth and some of the highest appreciation in home prices in the nation.

The outlook for Washington ’s economy is bright because so many people are moving there in response to help-wanted advertisements. Seattle , the state’s biggest city, is an especially hot job market, boosting confidence of sustained growth.

Microsoft co-founder Paul Allen’s Vulcan Inc., for instance, sees few obstacles to turning Seattle ’s South Lake Union area into a thriving residential neighborhood, given Washington state’s economic strength.

Lori Mason Curran, market research manager at Vulcan Real Estate, expects 135,000 people will move into the Seattle market over the next five years, propelling demand for housing that Vulcan’s property unit is building in South Lake Union.

Vulcan Real Estate’s foray into building office property in the industrial and warehouse area “on spec,” or without guarantees of leases, will also pay off because of healthy population and job growth, she predicts.

” Seattle is really, really strong on both fronts,” she told Reuters during a telephone interview on Tuesday.

Brisk hiring, especially by manufacturers, builders and software companies, is propelling that growth, said Victor Moore, the state’s budget director.

“It’s the high-paying industries … There’s been a steady demand from employers,” Moore said.

Their growth is helping Washington, unlike California and some other states, put aside concerns about a housing slump, at least for the near term, added state Treasurer Michael Murphy.

“With employment really strong, there is less likelihood of having defaults on mortgages,” he said, noting Washington’s housing sector is avoiding contagion from mortgage market turmoil arising from “subprime” borrowers unable to make their loan payments.

In contrast, the foreclosure rate in nearby California, whose motto is the Golden State, surged to the second highest in the nation in August, according to a report released on Tuesday by RealtyTrac, a leading real estate data provider.

U.S. residential construction fell to a 12-year low in August, according to a government report showing a 2.6 percent drop in housing starts. The data was released on Wednesday before Wall Street’s opening bell. In the Northeast, housing starts slid 37.7 percent in August, while in the West, housing starts fell 18.4 percent, the Commerce Department said.

STRENGTH ACROSS THE STATE

While growing payrolls keep Washington’s housing market intact, they are also swelling state coffers.

ChangMook Sohn, chief economist for Washington’s Economic and Revenue Forecast Council, projects $281.5 million more than initially expected for the state’s 2005-2007 and 2007-2009 budget periods — raising the state surplus to more than $1.5 billion — thanks to continued strength in housing from strong payroll growth across the state.

“This is the third year of achieving about 3 percent job increases,” Sohn said, adding that Seattle-area payrolls are growing at a torrid annual rate of 3.8 percent.

Major area employers such as Boeing Co. <BA.N> and Microsoft Corp. <MSFT.O> are expanding payrolls, as well as companies involved in international trade, as exports gain momentum on the dollar’s weakness.

“Everyone expects more containers to come,” said Port of Seattle spokesman David Schaefer, noting port officials are putting together plans to double the number of shipping containers the port handles from about 2 million annually.

With demand and prices for agricultural products up, farm-rich eastern Washington is also fueling the state’s good times.

“In the Spokane and Pullman areas, economists are saying they’re seeing glory days,” Sohn said.

HOT TIMES ON THE HOME FRONT

Washington’s varied strengths make the Puget Sound region centered on Seattle a top market for Costco Wholesale Corp. <COST.O> and an obvious region for expansion, said Jim Sinegal, the company’s president and chief executive.

The Issaquah, Washington, warehouse club operator plans to open another store in the Puget Sound market this fall and has four more “on the charts” for the region because of its growth prospects and confident consumers, Sinegal said.

“Full employment and good wages make it desirable to have a 50-inch (television) set,” Sinegal said.

Washington’s broad economic strength is underscored by housing markets across the state, said Keitaro Matsuda, an economist with Union Bank of California. He noted that Wenatchee, Washington, notched the nation’s best annual home-price appreciation in the second quarter among local markets — up 23.5 percent — and four other Washington markets, including Seattle and Spokane, made the top 20 list.

“When you look at its numbers, there aren’t too many things that are going wrong with Washington’s economy,” Matsuda said.

Fitch Ratings revised the state’s rating outlook to “positive” from “stable” on September 4, citing its robust economy and resilient housing market — a contrast to California, whose economy is slowing amid tumbling home sales.

“They don’t have the real estate issues California has,” said Richard Raphael, a Fitch executive managing director.

Bellevue , Wash. (Sept. 10, 2007) – Housing activity around western Washington during August resembled the pattern of the past several months with inventory continuing to grow, fewer homes selling and prices increasing compared to the same month a year ago.

New figures from Northwest Multiple Listing Service show pending sales in its 19-county service area dropped more than 22 percent from twelve months ago, while prices rose 2.8 percent. Last month’s volume of pending sales, which totaled 7,751 transactions, was down about 10 percent from July when members reported 8,614 pending sales system-wide.

Brokers report plentiful selection in most areas, with inventory almost 46 percent larger than the number of listings offered a year ago. At month end, there were 48,585 active listings of single family homes and condominiums in the Northwest MLS database, up from the year-ago total of 33,316.

The total includes 14,500 new listings that MLS members added during the month – the fewest number since March. Those additions include 12,239 single family homes and 2,261 condominiums.

” Savvy buyers are finding real values because they know motivated sellers are more flexible than they’ve been in a long time.

Despite market conditions that tend to favor buyers in many areas, home prices are still increasing, but at a slower pace. For most counties in the NWMLS service area, the year-over-year gain was less than 7 percent, although five counties (Grant, Island, Lewis, Okanogan and San Juan) experienced double-digit price jumps compared to twelve months ago.

For the Puget Sound region encompassing King, Snohomish, Pierce and Kitsap counties, selling prices rose about 5 percent from a year ago. The median price for the 5,975 sales of single family homes and condos in the four-county region that closed during August was $361,822; a year ago, the median selling price was $344,575.

A closer look reveals considerable variation in year-over-year price changes within the MLS service area. In King County, for example, the median price of a single family home (excluding condominiums) that sold last month was $477,345, a jump of more than 9.7 percent from a year ago. For single family homes in Pierce County, the median selling price rose 6 percent, rising from $275,000 to $291,500. In Snohomish County, sales prices climbed from $368,875 to $375,000, a gain of about 4.5 percent.

Prices surged 30 percent for single family homes that sold in San Juan County last month compared to a year ago. Sellers in Jefferson County experienced a similar gain (28.4 percent).

Condo prices also vary widely across the Northwest MLS service area. In eight counties, the median price of a condo that sold during August was under $200,000.

In King County, which accounts for about six of every 10 condo sales in the MLS system, the median sales price for last month’s completed sales rose 5.75 percent, increasing from $269,500 to $285,000. Within King County, the southwest and eastside sub-areas had double-digit price gains on condo sales compared to a year ago.

The highest priced condos continue to be found in downtown Seattle. The median price for last month’s completed sales of condos in the downtown area was $430,000, a slight drop from the year-ago figure of $440,000.

Washington state continues to experience little fallout from loan delinquencies and foreclosures. A recent analysis by the Mortgage Bankers Association pegs the state’s foreclosure rate on all loans at 2.6 percent, one of only six states with rates under 3 percent. For subprime ARMS (adjustable rate mortgages) the default rate for Washington stood at 10.4 percent; only Oregon (10.2 percent) and Utah (9.4 percent) claimed lower rates of delinquencies.

Washington also fared better than most states for home price appreciation for the second quarter. Surveys by the Office of Federal Housing Enterprise Oversight (OFHEO) shows Washington was one of only four states where homes appreciated at 9 percent or more between the second quarter of 2006 and the second quarter of 2007.

Any questions or comments?

David Sprague assoc Broker

RE/MAX Realty Professionals 425-250-3200

http://www.SearvingBellevue.com

http://www.SeattleAreaHomes.com

One popular free advertising source known as Craiglist.com is a steady source of victims for the scam artist operating out of Nigeria and the UK. However, it’s not uncommon for listings on the MLS to receive such offers as well. There are three groups involved in perpetrating the scam. The first bunch are known as the Yahoo Boys, and they are the ones that scour the web for email address regarding rental properties. They send out emails by the thousands in the hope a few will respond.

Once someone has they may pass it on to another scammer that’s experienced in the art of reeling the victim in (2nd level). All of this activity is watched over by the ring leaders (3rd level) that actually monitor all of the email accounts to insure the “worker bees” are performing correctly, and if it appears one is dropping the ball they will pull him out and bring in another more experienced player. The ringleaders collect the funds and actually pay commissions down the line to the boys that reeled them in. Many of the Yahoo Boys are college students and are given computers and promises of big money to participate; they view it as a job. It’s not any different from Americas own drug dealers luring kids in to selling drugs for them. A great deal of this type of activity takes place in internet cafés, but often the kids are provided laptops and internet connections to work from home.

I recently ran an ad on craigslist.com to see if they were still working it. Craigslist has posted many warnings against responding to such solicitations and I was curious if the scammers had moved on to more fertile ground. They have not; I received 16 such inquiries in one day to a simple ad offering a room for rent in Bellevue. I used a fictitious identity and a newly created email address. I’ll use the emails from just one of them as an example. This particular scammer managed to have a check on my doorstep by the next day!

This is a common type of email sent in search of victims and is sent to dozens of people at a time (they are often poorly written):

First response to my ad:

_______________________________________________________________________________________________________

Hi ,
I am willing to rent a room or seek roommates who is nice and honest.
My name is Helen and I am 28yrs, Single, never been married, I am originally from Harrisburg, PA but I am currently out of the United States, I should return back to the State, as soon as I am able to secure a room where I will stay.

I am honest, trustworthy and caring person, who enjoy making good friends, I dont smoke and I dont drink ( but I am not against it), my hobbies are traveling, and Singing, I go to a friends party, but I dont stay late at night.

I would have loved to come and look at the room, but I am not in the States yet, so I will trust you on what you tell me regards the room.
I am currently working for GVI (GLOBAL VISION INTERNATIONAL) and I travel most times to the UK, I work as resercher on a construction Project/Research and Exploration Expedition.
I am moving back to the States. this very week, I have plans to staying back in the States, and look for a part-time job with my degree in Marketing, have thought about it carefully and I want to move to friendly city, where I can start my own life different from the one I have lived in the UK while working with my company GVI and the part-time job I will get any moment from now.
So I just want you to confirm the rent including utilities and if there is any deposit, whats the amount to move in all together? I am willing to stay for up to 8 months but I can move out during this 8 months if you want me to, as soon as I arrange payment for 2 months rent and deposit, when do I move in?

What is the closest international airport to the house? I will ask my company’s associate in the US to send you a payment to cover for 2 months to confirm my willingness to occupy your space.
Please forward me your full details where you would want the payment be mailed to:

(Full Name)……
(Address):…..
(City, Zip Code):…
(Email):…
(Direct Phone):…

Thanks, I will be waiting for your details so I can proceed with the payment, I have also forwarded you my picture so you will know how I look.

Regards,

Helen
+44(0)7031817967

______________________________________________________________________________________________________

Once someone has responded and expresses interest in renting to the scammer, they will receive this (already calling themselves your roommate), the “private email address” is actually the pass-off to the more experienced con artist.

______________________________________________________________________________________________________

Hi Michelle,

How are you doing, This is Helen, your roommate, this is my private email address…………. carterplp@yahoo.com, I have forwarded your details and I am looking forward to meet you, so the payment of the room will get to you by Wednesday-Thursday due to the postal system, as soon as you get it do not hesitate to contact me so I can proceed with my flight. I will also need your phone number just in case I want to reach you.

My company associate in the States has issued a cashier’s check to cover for the rent and my expenses during my trip to the states, as soon as you get it, deduct your rent for 2 months including deposit and forward the remaining funds to my traveling Agent, through Western Union so I can use it to get my flight ticket. I will be buying a used car when I arrive, I will appreciate it if you can help me remove your ads from the internet so I will be assured that I am the only one contacting you regards the room. do you have YAHOO or MSN instant messenger so we can also talk for free on yahoo, my yahoo chat ID is: carterplp@yahoo.com.

Thanks, I cant wait to meet you in person, I will forward you the tracking number of the package(payment)

Your future roommate,
Helen

_______________________________________________________________________________________________________

After a bit of small talk you will receive this email:

_____________________________________________________________________________________________________

Hi Misha,

How are you doing?, I am happy that you will get the payment today, the UPS tracking number is (J2080425169), you can go to http://www.ups.com/USto track the package. I was informed that the $4550 was mailed to you to cover for my rent and my flight ticket to the US, as soon as you get it, go and deposit it in your account, you will help me transfer the balance of $2400 to my traveling agent who is in charge of my flight directly, while the remaining funds will be used towards my rent and utilities. I will be flying on either KLM or British Airways, since I am a member, but will forward you my flight details as soon as it has been scheduled.
Below is my traveling agent’s info where you will transfer my ticket funds to, through Western Union Money Transfer, you only need the Agent’s Name and City, Zip and country to transfer funds using Western Union Money Transfer.

(Name): TIMOTHY MONTOYA

(City)Port Washington

(State)WI.

(Zip) 53074

I will be expecting the following info from you as soon as you send the funds, I am aware that the Western Union Agent will charge you for sending fee, please use out of the funds to pay the tranfer fee, I will need the info as follows:

(1)Exact Amount Sent(after deducting the transfer charges):…………….
(2)Senders Name and Address:………..
(3)Money Control Number/Reference Number(MTCN):………

Please, do make sure the funds are sent same day you get the payment so I can get my ticket on Friday and fly on Saturday, that reminds me, how do I get the keys to the room, will you be available to pick me up on Thursday???.
Thanks, I awaits the Western Union Details.

Regards,
Helen

______________________________________________________________________________________________________

Then the sense of urgency begins and often you will receive several emails in rapid succession:

_______________________________________________________________________________________

Hello Misha,

How are you doing, I just got your message, please make sure the funds are wired today, Saturday is my flight, I want to be able to schedule a flight tomorrow, did you get my traveling agent’s info?

Thanks, looking forward to meet you.

Helen

____________________________________________________________________________________________________

Hello Michelle,

How are you doing, did you get the payment yet, I tracked it and it has been delivered at the front door of your room, so please I will need your swift response ok, I cant wait to meet you, will you be able to pick me up at the airport?

Thanks, will be waiting for the Western Union Details.

Helen

______________________________________________________________________________________________________

Because I like to see how they deal different objections I send various responses, this is one I used:

______________________________________________________________________________________________________

Me: Yes, it was there when I got home from school today but it was too late to go to the bank. I talked to my mom today cause I was real excited about you coming here, and she thinks it’s a great thing. She did suggest though that I wait until the check clears with the bank before sending any funds to you. I’ll have to ask the bank how many days it takes to clear completely, hope that’s not a problem luv. I’m really excited about your coming here and I know we’re going to be the best of friends!

Scammer: Hello Misha, How are you doing, I am really excited at the thought of meeting you, I can see that you are nice and honest, I am the same kind of person, I cant wait to meet you, please the bank might want to put 2-3days on it, I wont be able to wait for that long.

I am asking you, if there is anything we can do so I can get my flight, or if there is a way you can borrow money for me and as soon as it clears, we will replace it back. Can we exchange pictures?

Helen

Me: I maybe could borrow some money from my student loan account, but that’s about all the money that’s in it. If for some reason I couldn’t pay it back I wouldn’t be able to pay for next semester and I would not be able to attend classes. My mom would just kill me! What’s your flight number and departure time?

Scammer: Hello Misha, I really appreciate what you are doing to me, I promise to be the best fried you ever have, please, maybe we shouldnt tell your mom about it, so when the check clears, we can return it back, my flight is Saturday 6pm, I will need to pay my traveling agent before I can get a confirmation for my flight. ok.

Please, I will appreciate it if you can wire the money to my traveling agent today or early tomorrow, It is certain we will replace it back ok. Thanks. Looking forward to meet you

Helen

Me: I do feel like I’ve known you all my life, and I’m certain I can trust you. Maybe when I go to the bank I should just explain the urgency of the situation and they can call the bank that issued the check to confirm it’s good. I’ll bet that would solve our problem! What do you think? I hate to lie to my poor mother, she’s been really sick with cancer and all and she doesn’t feel good. Wouldn’t it be better to just ask the bank to help us out?

Scammer: Hello Misha, I understand, I wouldn’t want you to lie as well, there is nothing the bank can do because it is a policy they must follow, let just see how many days they will ask use to wait then. Thanks, looking forward to meet you.

Helen

(After this email, a more experienced scammer came in. This one was dropping the ball)

Me: Gee thanks, that’s a good idea. I knew you would be understanding of the situation. I actually forgot where you’re flying from! I see your travel agent is here in the US, did you used to live in that State? I’m still so excited knowing your coming so soon, the weathers still pretty nice so we can spend a little time going downtown and eating at all the beautiful restaurants. What’s your favorite kinda food Helen!

Scammer: Hello Misha, How are you doing, I am exicted about meeting you as well, yes I use to live in Harrisburg, PA and Wi but thats a long time, I am originally from PA. I like lights food, yes we could go out and have a nice time.

Helen

Me: Where are you now, are you in England? I’ve always wanted to go there! What do you do for work?? I want to be a Hotel Manager, or maybe work on one of those big cruise ships after I graduate. Did you go to college in Harrisburg? You mentioned earlier we could exchange pictures; I don’t remember if I ever sent you any or not, so I’ll go ahead and attach a few for you now.

Scammer: How are you doing? I just got your email, I want to know if i can borrow some little funds from you, any amount you have, I will appreciate it. I WANT T RAISE SOME MONEY TO BUY MY FLIGHT BEFORE THE CHECK CLEARS, the days the bank asked you to come seems like a year to me, I will be waiting for your swift response.

miss ya

Helen

Me: How much do you need to borrow sweety? I don’t think it will be a big problem. Can you possibly send me a scan of your photo identification, like a driver’s license, or school ID? Then I at least know exactly who I’m making the loan too.

Scammer: Hello Misha, how are you doing? I just got your email, I cant believe you are asking me for these just because I ask you to borrow me some money, I dont have a scanner to scan what you have asked me to send to you.

But, I want you to know that I am an honest person, I cant borrow what I will not pay for, it is very urgent thats the reason why I turned to you for assistance, we are now friends, I can assist you if you want me to as well…..

Please there is no way I can send all this, since I dont have a scanner, I want to believe you trust me right? Please……..

Helen

Me: Well, shoot, don’t they have places that can scan for you? Oh, wait, I know. Maybe you can just take a picture of it and send that! I would at least like pictures of you or something, I know we’re friends and all but I’ve never even seen you. Plus, you didn’t say how much you want me to loan you. I only have about $5,000 in my college loan account that I’m supposed to use for school next semester, if I sent you that I would really need to be sure your going to pay me. If I lose my college money I can’t return to school for half a year, and my mothers so sick with cancer I know it would just kill her if I wasn’t in school.

It’s not that I don’t trust you hon, but the check didn’t come from you, it came from another person. I have no idea who that person is. What if they cheated you and me both? What should we do Helen???

Scammer: Hello Misha, I just got your email and I believe you, I wouldnt want you to risk anything for your college ok, I will have to wait till the check clears then, I just hope it wont tkae more than 3day, but what I was acutally going to borrow from is $1000 and not $5000, I was just thinking I could be in the State by this new week, so we can visit alot of places together, I am really excited about meeting you.

and I know you will make a good friend. I wish you could borrow just the $1000 before noon tomorrow, I would appreciate it, that means I will still be able to fly later in the evening on Saturday.

How is your parents doing, I hope she is using her treatment, where di she travel to? would you like to visit the UK in your holidays? we cna go together and stay in my house here in London.

Thanks, will be waiting for your email.

Helen

Me: So sorry I just got your message Helen, I went to my best friend’s birthday party (see pic) and we had such a good time. I really wish you could have been there. As for your question, $1,000 doesn’t seem so bad; it is a lot of money to me so please realize that even losing that amount would dramatically affect my life.

The banks aren’t open tomorrow though Helen, so I can’t do it until Monday. You really have to swear to me though, if the check your friend sent for any reason doesn’t clear (which it can’t in 3 days, it takes over a week), you will pay me when you get here.

Surely you understand that even losing a thousand dollars would mean I can’t continue my education, and when my mother returns from France from her cancer treatment, the last thing in the whole world I want to do is break her heart and tell her I lost my school money and had to drop out. I think I would rather kill myself than do that.

So please, you must promise me on the Holy Bible you will make good on the loan if the check isn’t good. Do you promise??

Love you always,

Scammer: Hi Misha, How are you doing, I just got your email, yes I realized that alot of things is at stake if you have to borrow me the money, I promise to give you back if anything happens to the check ok, but I bet you nothing is going to happen, because this is my pay check, and no one will want to send me a bad payment, but I promise to give you back the funds if anything happens ok….. trust me on this.

Regards the party, I saw the pic, I just wished I was there with you, at least thats another avenue where we can spend time together and get to know ourselves better, right now it is as if I have known you for years, the understanding is just too perfect.
I cant wait to be there so we can go to other occasions like that, we could even visit London together during your hols in school. Please, do make sure the funds are wired early on Monday, try and do everything very early on Monday, I will really appreciate it…..I promise to pay you back in a very big way!

Thanks, looking forward to meet you.
Helen

(As you can see, the scammer is finding humor in ripping her off when he say’s “I promise to pay you back in a very big way!”)

Me: How much of my school money should I send? What do you need for your trip? I’ve seen those pics before, is that all you have?

Hello Misha,

How are you doing today, sorry I have not been online for sometime now, I have been busy putting my things in place for my trip. I would have appreciate $1500, but I am not sure you would be able to do that? if it is possible help me with $1500, and if you think $1000 is ok, then try and send it to me very early Monday morning ok.

Please, it is Monday here and the time is 4:56am, I will be coming back to check my email for the Western Union Details ok.

I hope you still remember my agent’s info:

(Name): TIMOTHY MONTOYA

(City) Port Washington

(State) WI.

(Zip) 53074

I will be expecting the following info from you as soon as you send the funds, I am aware that the Western Union Agent will charge you for sending fee, please use out of the funds to pay the transfer fee, I will need the info as follows:

(1) Exact Amount Sent (after deducting the transfer charges):…………….
(2) Senders Name and Address:………..
(3) Money Control Number/Reference Number (MTCN):………

I am looking forward to meet you Misha, I cant wait for us to paint the city with beautiful colors together.

Helen

Me: Thank for all your patience, I spoke with the bank and they said the money was available for withdrawal so I’ve sent $2,515.00 early this morning. The MCN number they gave me was 289-609-5468. Take care and be sure to get back to me with your flight information!

Now obviously I sent no money and the number is fictitious; often I’ll send them to the WU several times attempting to collect, and sometimes I even send them a doctored receipt from Western Union to convince them it was indeed sent. On one such occasion the scammer went to Western Unions office with the fictitious receipt so many times the police were waiting for him when he came the 4th time to collect and his associates emails me asking me to help get him out of jail! He was quite upset and said “Our Minister of Finance” has been arrested!” that made my day.

The two things people have said to me in the past regarding these scams is that:

Anyone getting pulled into such a scam is being greedy and trying to get something for nothing, therefore they deserve what they got!

The Nigerians are so poor they’re simply acting in desperation and trying to find a better life.
I don’t really believe either are true 100% of the time. As you can see by this email exchange, this person I fabricated was merely trying to rent out a room, and for a fair price. It wasn’t part of a “Help me sneak 45 million of a deceased persons bank account and I’ll split it with you” scam (although that is a common scheme); so honest hard working people are victimized by these scams.

I intentionally said all I could to see if the scammer had any sympathy at all. In the end, it didn’t matter how sweet and innocent Misha sounded, that she would not be able to pay for college once the scam was complete, or that her mother was gravely ill. The scammer had no qualms getting her to take her college money and send it and instructed her to keep it a secret from her ailing mother.

I also wanted to show how they befriend the victim and prey on many lonely people. The young and elderly are common victims. I recently saw a young man on TV that simply wanted to sell his motorcycle. He was contacted by a man from overseas and sent a check for more than the amount due. He was then contacted by the “shipper” and asks to wire money so that they would pick the bike up and ship it out. He lost over $3,000 and now has to work 3 jobs to repay the bank or face criminal charges. He wasn’t trying to get rich quick, just sell his bike.

I spoke with a Realtor last week that said she had in fact rented a home to someone that contacted her via the web and rented the home prior to arriving from Canada. They did send her a cashier’s check, but they did not ask for money back; it was a legitimate deal. So it’s not hard for someone to believe that it is legitimate since on occasion people do rent rooms in this manner. Then when the bank permits them to withdraw the money from the account based on the check being deposited, many believe that indicates it has cleared, when in fact it has not.

As for the Nigerians impoverished condition driving them to do this, that’s not quite true. The bulk of the profits are going to the ringleaders and they have made billions. The Yahoo Boys are paid nominal commissions for their success. Many consider it a game, as this popular song indicates. It’s called “I Go Chop Your Dollar” and has lyrics such as this:

“419 is just a game. You are the loser, I am the winner. White people greedy…. I take your money and disappear…. You be the fool, I be the master.”

The losses from this scam are in the billions! On August 6th 2007 the EEOC (Economic and Financial Crimes Commission) ran a sting operation in Nigeria and confiscated outbound mail for the US and UK. The operation produced startling discoveries of how criminal elements operating from the country ship fake documents and counterfeit financial instruments abroad. In several packages they found fraudulent identification and counterfeit financial instruments neatly concealed in carbon paper to evade the sensors of scanners.

In all, 15,129 counterfeit checks related to advance fee fraud scams were intercepted. They included 6,948 blank checks and others drawn for the sums of $145.9 million, Euro 211,077, 218.00, over two million Pounds Sterling and 120,450.00 Canadian dollars. So this is a major problem that shouldn’t be ignored and written off as “something that happens to greedy fools”.

In playing along with their scam and allowing them to send the check, only to realize they have wasted their time and money in doing so and perhaps makes them more leery of who they send the checks to. I’ve noticed that some of the ads I place on Craigslist receive no response. The Yahoo Boys have private websites where they post messages to one another regarding their own bad experience with victims and who to avoid.

I hope that in doing this I make them more leery of any ads for Washington State property rentals. I’m not crazy enough to believe I can end it, but as I said before, if I can just save a few from this scam it’s worth my time. I haven’t taken as much time or effort as it may seem; I often do it when I’m bored or need a break. Also, I can’t lie; it’s a bit fun at times.

To see a few of the checks received click on this link.

http://allreaders.net/allscams/thefakechecksreceived.html

BREAKDOWN, TAKEDOWN…YOU’RE BUSTED!” Bob Seger That classic 80’s lyric aptly describes the market last week, as the Stock market suffered a breakdown, analysts got a takedown, and many investors felt they were busted as Stocks sold off hard on Friday. Why? The result of a super lousy Jobs Report number on Friday morning. US job growth in August was actually negative for the first time in four years, with a loss of 4,000 jobs. And the shocker was that analysts had expected somewhere close to 110,000 new jobs to be created!

But while Stocks suffered on the news, Bonds benefited, meaning that home loan rates on conforming loans improved by .125% to .25%. Additionally, the dismal Report also means the Fed is almost guaranteed to make a cut to the Fed Funds Rate at their upcoming meeting on September 18th, to help stimulate a sagging economy. And in fact, their cut now may be a .50% cut, rather than the .25% that has been speculated.

This action would help stimulate business at large, with less expensive costs to borrow - and also help consumers as well. The Fed Funds Rate impacts many other borrowing rates, such as Home Equity Lines, credit cards, car loans and the like.

If you would like more information on the mortgage market or if you have any questions and real estate in the Bellevue area including Issaquah, Kirkland, Seattle and Redmond them check out our website.
Belleue MLS ServingBellevue.com
Seattle MLS SeattleAreaHomes.com

Inventories are up but prices contiue to rise overall

Overall the Seattle area real estate market remains strong as compared to the rest of the country.

Only five of the cities surveyed for S&P’s 20-city index showed a year-over-year increase in prices in June. Seattle led the way with a 7.9 percent price rise, followed by Charlotte (6.8 percent) and Portland (4.5 percent). Atlanta and Dallas (1.6 percent each) rounded out the group.

Prices in Boston dropped in June at a slower rate than they did in May, continuing a trend that started at the beginning of the year. In April 2006, Boston was the first metropolitan area to show a year-over-year decline, so any turnaround there could be an early sign of recovery!

After years of rapidly rising home prices, the national real estate market stalled last year, with prices holding steady or falling as sales slowed. Since then, lenders have made it more difficult for some people to get mortgages by tightening standards just as foreclosures rise and some who borrowed at adjustable rates are facing higher payments they can’t meet.

Problems have spread from those with poor credit repayment histories to more creditworthy borrowers

Numbers just out from the Seattle MLS and Bellevue MLS show dramatic increases of available homes for sale for the month of July 2007. There are 9947 homes for sale in King County or 44% more homes available as compared to the sale time last year. This is actually a 16 year high. We had to look back to 1991 to find these numbers of available properties. It is no longer a “sellers” market. There has been a significant rise in the number of available condos, 2955 for sale now, an increase of 80% more available condos as compared to the same time last year.

The national real estate markets have slowed significantly with sales at about half of what they were last year. The change in available home mortgages has prompted this current national slow down.This is the 5th straight month of slipping home sales nationally. Even though the Puget Sound area is economically strong that the rest of the nation, those numbers do effect the market here.

Investors last week gained a sense that the subprime and credit market problems were not going to sink our national economy.

That realization, however, makes the likelihood of an interest rate cut at the Federal Reserves’ next meeting less certain than it appeared 2 weeks ago.

With interest rates having to go nowhere but up (they are at historical lows) we are encouraging our buyers to purchase asap. Don’t wait for interest rates to rise.

Contact us if you have any questions, David Sprague 425-250-3200 assc Broker
RE/MAX Realty Professionals

www.SeattleAreaHomes.com www.ServingBellevue.com