Lawsuits Plague Orange County Condo Complexes

 Condominiums plagued by frivolous lawsuits
Homeowners suing the HOA causes problems for all owners in a complex. This makes it impossible to get an FHA loan, difficult to close a conventional loan and harms the value of all the units. In California (we are a litigious state) anyone can sue the Home Owner Association and hold everyone hostage. 

Laguna Niguel, Laguna Woods and Newport Beach have the highest number of this type of Civil suits in the State.

Case # Orange County Superior Court 30-2012 00611073

Dolumeter Wharton V Old Trabuco Highlands Homeowners Association

Dolumeter Wharton  did not pay her HOA dues for two years.

Dolumeter Wharton Sued the Home owner Association in Orange County Superior Court filed as a case less than $25000 claiming they didn’t have the right to charge her late fees. On The Orange County Superior Court Case Access the case appears satisfied financially, however this creates headaches, hardship for owners and holds down the value of units in the complex with frivolous claims.  

The case was originally against American Express… then Dolumeter Wharton (one owner in the complex) cross- complaint sued the Homeowner Association for collecting normal monthly dues. Mr. Wharton did not pay her HOA dues for two years and tried to dispute in court that the collection company that the HOA used was illegal.  Wharton wanted the condo complex to waive all her late fees of $1700. Wharton paid the past due bills.

Superior Court of California- County of Orange, Case access and enter her name Wharton, Dolumeter you can see the case. She also sued four other people about various and sundry (don’t look solid or valid) issues in the past. She originally sued American Express in this filing then took a broad approach and sued everyone in sight. You can see on the case access Wharton paid $10000 and later this was set aside.

Since this was filed as Under $25000 he could not have re-couped any more than that amount. Insurance in the master policy covers this. The HOA did have to hire an attorney. The case has nothing to do with the solid HOA – it is about one unit owner trying not to pay the monthly dues. Dolumeter is asking for an apology from the HOA…

Verified losses $6700 + $1700 but still dragging all the homeowners and mortgagees into problems. In order to close a home loan in a condominium complex, lenders must verify the cost of lawsuits and if the pending litigation creates a hardship or financial strain on the owners, and mortgage lenders.  These frivolous claims end up harming all the owners in a condo complex. It adds costs. It makes the value of the units less because it is difficult to get conventional or FHA financing. The only person who will win in this is her Attorney.

 

 

 

Rule 3.740. Collections cases

(a) Definition

"Collections case" means an action for recovery of money owed in a sum stated to be certain that is not more than $25,000, exclusive of interest and attorney fees, arising from a transaction in which property, services, or money was acquired on credit. A collections case does not include an action seeking any of the following:

(1)Tort damages;

(2)Punitive damages;

(3)Recovery of real property;

(4)Recovery of personal property; or

(5)A prejudgment writ of attachment.

(b) Civil Case Cover Sheet

If a case meets the definition in (a), a plaintiff must check the case type box on the Civil Case Cover Sheet (form CM-010) to indicate that the case is a collections case under rule 3.740 and serve the Civil Case Cover Sheet (form CM-010) with the initial complaint.

(Subd (b) amended effective January 1, 2009.)

(c) Exemption from general time-for-service requirement and case management rules

A collections case is exempt from:

(1)The time-for-service requirement of rule 3.110(b); and

(2)The case management rules that apply to all general civil cases under rules 3.712-3.715 and 3.721-3.730, unless a defendant files a responsive pleading.

(d) Time for service

The complaint in a collections case must be served on all named defendants, and proofs of service on those defendants must be filed, or the plaintiff must obtain an order for publication of the summons, within 180 days after the filing of the complaint.

(e) Effect of failure to serve within required time

If proofs of service on all defendants are not filed or the plaintiff has not obtained an order for publication of the summons within 180 days after the filing of the complaint, the court may issue an order to show cause why reasonable monetary sanctions should not be imposed. If proofs of service on all defendants are filed or an order for publication of the summons is filed at least 10 court days before the order to show cause hearing, the court must continue the hearing to 360 days after the filing of the complaint.

(f) Effect of failure to obtain default judgment within required time

If proofs of service of the complaint are filed or service by publication is made and defendants do not file responsive pleadings, the plaintiff must obtain a default judgment within 360 days after the filing of the complaint. If the plaintiff has not obtained a default judgment by that time, the court must issue an order to show cause why reasonable monetary sanctions should not be imposed. The order to show cause must be vacated if the plaintiff obtains a default judgment at least 10 court days before the order to show cause hearing.

Rule 3.740 amended effective January 1, 2009; adopted effective July 1, 2007.

THIS RULE Wharton filed under is to try and stop the HOA from foreclosing on her individual unit.

 

 

Caroline Gerardo NMLS # 324982

 

 

 

 

Natural Mosquito Repellants

Lemon Balm or Citronella is very effective

 

 

I am sensitive to mosquitoes. My children are allergic. It is mosquito season in Orange County, California and we like to hike in the local canyons, spend time at Newport Beach and in our backyard.  These tips are all natural and do not use any chemicals or poisons.

 

First and most important is don't leave standing water in fountains, ponds, dog bowls, old tires, etc.  If you have a small pond - stock it with gold fish, or mosquito fish (supplied  through our local Orange County Vector Control or often shared for free at garden suppliers like Plant Depot).

 

Wear light colored clothing that covers .

 

Mosquitoes don't like wind, a fan can help. Also make certain your screens are in good repair. Vents to the home can allow these pests into the walls. They are attracted to the CO2 in our breath.  Screen up the vents.

 

Electronic bug zappers have been proven to  be ineffective, they actually kill more beneficial bugs than the mosquitoes. There are bug zappers that put out CO2, and these kill about fifteen percent of the pests, BUT they are expensive and last about one season. Ultrasonic ones also are proven to be mostly useless. 

 

However here are some recipes for natural bug repellents. I suggest you plant any of these plants in your yard and in pots. All will grow without fertilizer or bug spray in California gardens. Do not treat the plants with chemicals, as you will want to crush some leaves on your exposed skin or use for cooking,

 

 

 

Catnip smells nasty to mosquitoes, gnats and flies. Nepeta cateria, is very easy to grow and more effective than the chemical most often used (Deet). The growth habit is similar to mint and will spread. I no longer have a cat, but she used to sleep on top of the pot with this plant with that glassy eyed look. I learned to plant it directly in the ground and just let her go crazy, the plant seemed to always return.

 

My front yard - lavender, lemon balm, rose geranium, coriander, pelagonium, penny royal, ageratum, and bee balm all repel mosquitoes (also aphids, and gnats but provide food and fun for bees and butterflies of many sorts). 

 

Nasty guy

My side yard peppermint, and the marigolds are gone - I don't have great luck with marigolds.

 Lemon verbena, and rosemary also have some repellant properties.

Many of my "mosquito enemy  plants" are herbs used for cooking or just smell lovely to brush against in the garden

 

Backyard pelagonium growing like a weed, need to hack it back and rose geranium

 

Lemon Thyme and regular thyme in my yard also act to scare the critters away.

You may of course purchase these as herbal oils and mix them with apple cider vinegar.

I also suggest you create castile soap with lavender oil, citronella oil and rose oil ( add a four drops of each into an 8 ounce bottle to use to wash your body. Also you can add the oils to inexpensive bubble bath, your rinse cycle of your washing machine, dog collars to keep your pets comfortable, and the cuffs of pants and long sleeves.

I have read that drinking a tablespoon of apple cider vinegar, eating garlic and vitamin B-1 will change the smell of your breath and skin to be less attractive to mosquitoes who are out hunting around water at dusk.

The though makes me itchy just writing about them.  Enjoy the outdoors,  and your home without chemicals... Being green is good, come on over to my garden

Ageratum Houstonian is very useful repellant to mosquitoes. The plant secretes coumarin, the number one alternative to DEET in commercial mosquito repellents.

Do not use this on your skin, if you are allergic to any plants.

 

Candians Buying Real Estate In American Jungles?

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I am seeing an increased interest from Canadians who want to purchase real estate in the United States. There are many “experts” out there providing seminars (for a fee) on how to get rich off the American Mortgage and Real Estate Crash. The problem is the advice doesn’t often fit the practical steps to actually make any money.  Holding title in tricky structures will not work with an American mortgage lender. Investing your hard earned money in a jungle, requires careful planning. Canadians must be aware of the differences in state and local laws, as well as restrictions some cities have about weekly or monthly rentals.  Having a home town expert you can trust is vital. Purchasing property is all about the location. Buying rental property is also tricky when rents can be siphoned in cash. The key is to have safe stop gaps, honest /reliable management and manage costs. The ability to obtain low rate mortgages, locate expert hazard insurance and negotiate costs are advice a Realtor lender and tax advisor can help guide. Canadian mortgages are different from those available in the US.   Americans prefer a thirty year fixed rate loan where they can count upon low payments and know exactly what to budget for in the future. Canadian loans are typically five or seven years. Since the crash, obtaining a loan in the United States is a complex number of papers. Two years Canada revenue taxes (showing that you own rental properties already) current paystubs, the past sixty days bank statements and two forms of photo identification are only the start. There are other decisions such as how to hold, or vest the property. Setting up an entity such as LLC  or Corporation is expensive, adds to ongoing costs and many lenders will not allow this. Conventional mortgages are held in Joint Tenancy so complex strategies that guru get rich quick in real estate experts advise, is not going to work with getting a low rate on a mortgage.

In addition to adjusting to the rules and crazy regulations that Dodd Frank set forth to mortgage loans in the United States, Canadians need to understand all U.S. income tax considerations of owning U.S. real estate. Canadians are subject to American rule as to how rental income and the capital gain on the sale are taxed.

The American Internal Revenue Service (IRS) imposes estate taxes on Canadians who own U.S. property at the time of their death. This tax may apply when the value of the Canadian individual’s estate exceeds five hundred thousand dollars and the U.S. property is valued at more than $60,000. These numbers are U. S. dollars, not Canadian. The estate tax currently has a top rate of 35%. Taxes in the U.S. are likely to only increase.

There are also state specific forms of taxation. For example some States do not charge State Income tax but they collect huge transfer tax fees, require attorneys to handle transactions and on and on.

 
Direct ownership is the simplest avenue to hold U. s. real estate, such as Joint Tenancy or Sole tenancy. However this individual ownership has its own liability risks  for a Canadian individual, who is neither a U.S. citizen nor a U.S. resident, to own U.S. real estate.

Because each individual is allowed his or her threshold amount, ownership of the property can be split between spouses and others (children or family members).

 
In the past Canadians owned personal-use real estate in the U.S. through a single-purpose Canadian corporations. This strategy dos not avoid the U.S. estate tax since the property wouldn’t be held by the individual. In 2004, the Canada Revenue Agency (CRA) indicated that the shareholder of such a corporation would be taxable on the deemed benefit of using a property owned by a corporation,

Ownership through a Canadian trust is another method to eliminate exposure to the estate tax. The Canadian trust alternative can be beneficial for a married couple. Under this form of ownership, one spouse (the settlor) creates the trust for the benefit of the other spouse and children. The settlor funds the trust with cash to purchase the real estate and cannot be a beneficiary or trustee nor have an interest in the capital of the trust. This creates difficulty in opening matching trust bank accounts,

The disadvantages to this type of ownership start with the settlor’s inability to control the trust or to benefit from any trust distributions of money or property. Also, if the settlor is predeceased by the spouse and ownership of the property is continued by the trust, the settlor must pay rent to the trust in order to remain at arm’s length from it so that the IRS cannot deem that the settlor owns the trust property personally

United States citizens can borrow money or acquire a mortgage in a Living Trust but Canadians cannot. Only Living Trusts that are revocable and approved by the lender are suitable. Canadians setup Canadian Trusts for the purpose of avoiding the I. R. S. and providing all the ins and outs of your structure are counter to the purpose.  

Mortgage lenders, banks and financial institutions will freely provide your information to the I. R. S., when asked to do so in the future. The largest lender in the United States is actually the U. S. government, (transparency is the key word).

My advice is to research the risks, ask for advice, and like the elephant above learn from your mistakes.

 

Curb Appeal

The ten ways to make your home more desirable to buyers.  Curbside Appeal will draw them in.

Front door decorated with simple Fall Leaves- curbside appeal

Fresh Coat of Paint and a Little Handmade whimsy. This Fall decoration on an ordinary Tract Door in an Orange County Condominium complex says "welcome." The owners collected leaves, tied with twine and hung above.

urns at garden entrance

Art is in the eye of the beholder but what you are looking for as a homeowner is - How will a buyer see my entrance from the curb? Symmetry works with these urns in Laguna Beach. The balance and repetition works nicely with the glossy painted black gate. You don't need to be a professional landscape architect or designer to use repetition to appear well put together.

fun crates recycled

I'm fond of home made and funky. I love this arrangement of birdhouses, wine crates and old windows from Laguna Niguel. The owner took out the broken window panes and attached the chipped wooden frame to mirrors to reflect the yard landscaping.  All the items in the photograph were found for free. The ladder above is hung with heavy twine. Even though all the artifacts are older, the balance again of using two windows framing both sides works well. Also you will notice everything is painted in muted browns and a darker barn red, thus pulling everything together while still saying: unique, homey, and loved

picket fence

House in Ladera Ranch with a gorgeous use of white wisteria and white picket fence. Notice the white bird houses on the fence that lead you to the door.

contrasting colors for curb appeal

Here is another style of picket fence. Isn't this Laguna Beach home just charming? The terra cotta pots with golden flowers lead your eye to want to bring them the newspaper in the mailbox on the left. Owners used broken pieces of concrete and dug a trench about five inches deep, filled with sand and seeded the grass right over the stepping stones. Simple, Cheap and charming front entrance.

roses blooming at the curb

Flowers add excitement if you take care of them. This climbing rose around the mailbox and picket fence are multiple shades of corals and yellow. Roses require trimming after booming and like some fertilizer to keep blooming. Choose a cultivar that blooms more than once a year for the front and that is suitable for your climate.

This trellis entrance is very beautiful.

lush tropicals at the curb

This Laguna Beach home has the most fabulous arrangement of bromeliads, orchids, ferns and exotic plants right at the curb. They have used recycled concrete pieces, found local stone and gravel back filling the walls that act as planters. The loose construction feels relaxed and is barely noticeable among the lush green variety. Don't you want to enter this gate and see the secret garden and tree house?

white gate

At the top of Laguna Beach a homeowner added a gate with a Dutch door. The light sconces are especially well done in this arrangement. For my taste it is a little too cold, needs annuals with reds in pots on both sides.

The cheapest ways to improve the curbside appeal of your home:

1. New Paint

2. Annual Color in pots

3. Scrub and clean hardware, clean windows

4. Trim plants not in balls but in natural lacy shapes to see the house

5. Clean up weeds and much beds to look neat

6. Add some personal touches

7. Use balance and color to create a theme

Being on a budget doesn't mean ugly. Go take pictures of other homes with similar bones to yours. If you have brick façade- find houses that feel good and inviting from the curb with the same brick. If you have clapboards hunt around your neighborhood -Laguna Niguel  and Newport Beach are pretty restrictive about paint palettes, so look to Laguna Beach for more whimsy. You won't need to get a new mortgage to finance these suggestions.