Who is at fault

We have all heard a lot about the economy in the past few months. The crash of the financial system, the downfall of the auto industry, and the disaster in the mortgage and real estate industry. Who really is at fault in all this? I am sure the answer many years from now will say the fault is many things that combined to cause the crash.

Let me suggest just one thing that caused it - Greed. It does not matter what area you are looking at, whether it is the financial institutions, the stock market, the mortgage industry, or the real estate industry - the answer is greed. Everyone wants to make as much money as possible as quickly as possible.

Let me give you one of many examples:

- a man is from a third world country (he does speak English).

- he wants part of the "Great American Dream" to own his own home.

- his income is $1500 month and will not change much.

- he has a little money saved up.

- he wants a home even though he has a place to live provided by his employer.

- oh yes, he is single and will always be single (part of his job description).

- he finds a 6 bedroom house for a reasonable price.

- he makes an offer through a real estate agent who knows what his income is.

- a mortgage agent gets him a loan (how I do not know).

- his payment on the mortgage is $500 more that his income.

- he allows relatives to use the house as a type of group home - against zoning codes.

- all works out fine for a while.

- he gets greedy and buys another home for even more money - his income has not changed.

- now, he has over $500,000 of mortgage with an income of $1500 per month.

- his relatives move out leaving him with the 1st house.

- he is renting the 2nd house - unknown the income from it.

- he rents the 1st house to someone who runs group homes.

- the rent on the 1st house is less than his monthly payments.

- the utilities stay in his name.

- eventually the city tells him to stop the illegal group home.

- now he finds out the utilities have not been paid for some time.

- he now owes the mortgage, the back utilities, and is way over his head.

- he is about to loose the house and more.

Observation one - he should have never been given the original mortgage for the home. It appears that the real estate agent and mortgage agent just wanted their commission.

Observation two - he did not know or understand what he was doing when he purchased the two homes.

Observation three - he does not understand the landlord tenant laws of the State of Washington and how much trouble he can get into by doing things wrong.

Who do we put the blame on: the home owner? the real estate agent? the mortgage agent?

Well, I have to put the blame on all three but mostly on the real estate agent and the mortgage agent. They both should have told him that he could not afford the home or the mortgage.

The outcome was very predictable - even without the current economic crash.

Yes, I know there are good mortgage agents and good real estate agents out there. Unfortunately, we do not hear a lot about them. It is the greedy ones we hear the most about.

Some of my fellow real estate agents will not like what I have said. Unfortunately, in the recent real estate boom, it created a lot of greedy agents.

Satellite Dishes - did you know...

You are a tenant of a residential building and you want to mount a satellite dish on your balcony. Is this allowed?

Well, the answer appears to be yes.

You have the right to receive satellite transmissions independent of any wiring in the building or existing cable deals between the owner and a cable company, exclusive or not. Since 1996, the year the Federal Telecommunications Act was passed, landlords cannot unreasonably interfere with a tenants' right to mount an antenna within their exclusive rented space. You should become familiar with the specifics of this rule by going to the FCC Web site www.fcc.gov and typing "Over-the-Air Reception Devices Rule" in the search box.

Say NO to more governmental control...

It has come across my cyberdesk that the City of Everett is trying to join other cities around the Puget Sound Area in forcing "Inspections" on rental property. This is being done as a way of creating additional taxation for the City by using the excuse that the city is protecting its rental citizens from "slumlords." This is not the way to have better, safer, and cheaper housing in our communities. In fact, it is probably illegal under the Washington State Constitution.

It is believed that "Inspection Programs" constitute warrantless searches and violates the Fourth Amendment of the U. S. Constitution. Tenants are not second class citizens whose privacy rights may be violated. Local governmental agencies should not have unlimited access to rental housing. In 1994, the Washington Supreme Court, in McCready v. City of Seattle, unanimously struck down the City's assertion that it was legal to search a rental unit using an "administrative search warrant" issued by the City Municipal court without probable cause of Criminal activity.

We believe the cornerstone of safe housing is not inspections, but education. Informed tenants who understand their rights and responsibilities will protect property. Informed landlords will reciprocate to safeguard the welfare of a tenant who respects the property.

Furthermore, Inspection programs are costly to administer. Additional cost imposed on housing providers will only increase rents and make it more difficult for low-income tenants to find affordable housing. Tenants ultimately pay the cost.

The majority of rental owners are responsible citizens and landlords who equate the well being of their property with the welfare of their tenants. The rights of these responsible owners, and their tenants should not be compromised in an attempt to punish the irresponsible behavior of a tiny minority of landlords.

Existing state law and local housing, fire and health codes are sufficient to remedy any unsafe conditions that are found to exist. Problem properties will only be improved, and hopefully eliminated, by the consistent application of existing law and code by responsible local government entities.

The City of Everett already has an effective Crime Free Program with responsible rental property owners. A task force should have been created to discuss Everett rental housing concerns and issues. Unfortunately, and very disappointing, the City of Everett did not reach out and work with landlords before the introduction of this ordinance.

We all need to contact the Everett City Council and tell them NO to inspections. Below is a list of Everett Council contacts:

Everett City Council
Council Member Paul Roberts, T:(425) 257-8703, PRoberts@ci.everett.wa.us
Council Member Mark Olson, T:(425) 257-8703, markolson@ci.everett.wa.us
Council Member Arlan Hatloe, T:(425) 257-8703, AHatloe@ci.everett.wa.us
Council Member Ron Gipson, T:425 257 8784, rgipson@ci.everett.wa.us
Council Member Drew Nielsen, T:(425) 257-8703, DNielsen@ci.everett.wa.us
Council Member Brenda Stonecipher, T:(425) 257-8786, BStonecipher@ci.everett.wa.us
Council Member Shannon Affholter, T:(425) 257-8703, saffholter@ci.everett.wa.us

Regulation of our rental housing should be governed by reason - not greed. There is no need for this ordinance as there are other ordinances and codes that already regulate the rental housing industry. We do not need nor want more governmental control of our lives.