Granite countertops are a popular feature in American homes and new evidence suggests some stone slabs may be hazardous to homeowner health, emitting minute levels of radiation.

In a 4-minute story, NBC’s The Today Show addresses the “millions of Americans that have installed granite countertops because of their beauty and durability”.  It offers a balanced report of the risks that may — or may not — accompany the quarry-mined stone.

If you’re concerned about radiation emanating from your granite countertops, consider contacting the American Association of Radon Scientists and Technologists.  An in-home radiation test costs about $200. 

Monday afternoon, the U.S. House of Representatives defeated the $700 billion “Bailout Bill”, surprising Wall Street and the world. 

The Dow Jones Industrial Average responded by falling 777.68 points — its largest one-day loss in history and, this morning, every newspaper in America is covering the story as front page news. 

Lost in the coverage, however, is how the “No” vote created a terrific opportunity for home buyers and mortgage rate shoppers. 

Yesterday, as money fled the tanking stock market, most of it ended up getting parked in the relative safety of government-backed bonds which includes, of course, the mortgage bonds.  This rising demand for mortgage bonds caused rates to fall, improving home affordability.

To investors, stock markets represent risk and bond markets represent safety.  So, when market sentiment changes, as it did yesterday, Wall Street players often shift their dollars from one forum to the other.  This is why yesterday’s stock sell-off was good news for mortgage rate shoppers — the added demand for “safe” securities drove down rates.

Conforming mortgage rates were lower by about an eighth-percent Monday.

Now, today, mortgage rates are opening flat, suggesting that markets are in a Wait-and-See Mode.  Wall Streets knows that the defeated bill will re-emerge later this week and, when it does, expect traders to respond accordingly.

If the new-look bill is viewed as favorable to U.S. businesses without harming taxpayers, expect stock markets to improve and mortgage rates to rise.  If the bill fails to accomplish that goal, however, expect mortgage rates to improve.

 We’ve been hearing about a lot of houses being foreclosed on and some becoming blighted properties. At times these structures need to be torn down for public safety after exposure to the elements, burst pipes and/or copper stripping.

But I thought we could use a happy story here. I was in a stately home near Minneapolis’s Eat Street recently and was treated to a what can happen when a home is rescued via foreclosure.

Friends of mine initially tried to buy this 101 year-old home on short sale, but it slipped into foreclosure. It had been a rental (where a tenant had apparently taken a faux-finish painting class and left their mark) and then vacant for a while - during that time a radiator burst leaving huge water marks all over the front parlor. Cold temps had causes the plaster to crack and Lord only knew what was going on with the pipes. It was like a crime scene.

But these friends of mine were smart to befriend the home’s Realtor. While they waited for nearly 4 months to know if their offer had been accepted, they were able to go on the roof and put down a tarp to cover the hole in the roof where rain was pouring in. Finally, their offer was accepted and they were able to make the $50 repair to the roof.

Today they’ve touched nearly every surface in the main level. They found people who specialized in these older homes and got a new boiler and had minimal plumbing work done. Then they rolled up their sleeves and refinished a majority of the wood  to its original luster and the plaster is now flawless.

Some may say they got a deal on the house, but I think the house got the deal.

Thursday, federal regulators seized mortgage lender Washington Mutual.   The Seattle-based thrift became the third “big name” lender to close its doors since July, joining IndyMac and Lehman Brothers.

In 2007, these 3 lenders represented about 10 percent of the mortgage market and their subsequent failures are confusing American homeowners.

The most prevalent question:

If my mortgage lender fails, are my payments still due?

And the answer is an unequivocal “yes”. If a mortgage lender is seized, goes bankrupt, or is otherwise closed, it doesn’t change the terms of the bank’s mortgages whatsoever – just maybe the mailing address.

This is because a mortgage (and its corresponding note) is a legal contract between the lender and the lendee, signed on the date of closing. It is binding and cannot be altered by either party.  The only way to “end” the contract is to pay the loan in full. 

This can happen in one of 3 ways:

1. The home is sold and the mortgage is repaid
2. The home is refinanced and the mortgage is repaid
3. The home loan is paid down to $0 balance by the homeowners

So, if a mortgage company fails, its doesn’t cause the loan to be paid-off and, therefore, the mortgage contracts is still valid.  Payments are still due. 

However, because its mortgages are an asset, the failed lender will usually transfer them to a new lender’s servicing department.  This means that homeowners will write the same check for the same mortgage but to a different company.

To reduce confusion around transactions like this, the government puts two safeguards in place.  First, it requires the former lender to send a 15-day advance notice of the change to the homeowner.  And second, it requires the new lender to do the same.

In situations like this, the onus is ultimately on the homeowner to open and read his mail, and make changes accordingly.  It’s especially important for people who pay their bills online as opposed by paying them manually; you likely won’t get notified if you’re sending payments to the wrong place.

Head 30 minutes south of the Twin Cities and that the sky opens up over the rolling hills of country. That’s where you’ll find the city of Chaska. While there is a historic Main Street with brick buildings, a charming library and town square, Chaska is better known for its more recent development – and lots of it.

Attracted by the relatively affordable housing, people have flocked to the open spaces of Chaska with its many single-family home and townhouse developments. (To be honest, the housing is quite dense and often set up in “development loops” but these projects do offer a lot of house for less money.) Chaska is also known for being one of the first communities to broadcast wi-fi - though at least one local blogger isn’t happy with the system’s performance.

Abundant big retail shopping such as Home Depot, Target and Rainbow Foods has also sprung up around the major intersection of Pioneer Trail and highway 41. But it’s not all about big box retail. Residents get access to rural locales, public and private golf courses and the enormous Chaska Community Center. It’s a gym, a performing arts complex, a swimming facility, an ice rink and an indoor soccer arena - it’s the Swiss Army Knife of recreation.

And just when you thought it couldn’t get any better  -  living where every retail, sport and nature need is handily met - the drive is about to get easier. By year’s end  the highway 212 project, a $238 million dollar upgrade, is slated to completely finish the major conduit to the metro that will include improved public transportation for city commuters.

If you’re in the market for housing in Chaska, you can start your search HERE - and then enjoy your Webdig’s rebate when it’s all set & done.

A Minneapolis neighborhood took on a lending corp - and won.

In yesterday’s Star Tribune, I read about how the neighborhood of Hawthorne shook down the likes of CitiMortgage.  I don’t know about your neighborhood group, but none of the ones I’ve been involved with had that kind of bravado.

Here’s the skinny:

Hawthorne was able to buy a fire-damaged house for under 19K. It’s a property which CitiMortgage was in for a $235,000 mortgage. I think it’s saying something that a lending giant is taking some small amount of responsibility for its poor lending practices.

From the Star Tribune article…”We shook the foundations of a financial institution that, like the rest of corporate America, claims to do no wrong,” said Peter Teachout, a neighbor of the house and the chairman of the Hawthorne Area Community Council, which sued CitiMortgage.

Although the piece clearly states that the case “avoids a precedent on whether a lender can be held liable for the effects of allegedly careless loans” -  it is a huge victory for this neighborhood which needs the property for part of a redevelopment project.

 On September 11, 2008 our industry lost one of its giants.  Bill Saunders, Co-Founder of Re/Max Results  passed away after a 10+ year battle with colon cancer.  He is survived by his wife, Vicki, his son, Marshall and thousands of people whose lives he has touched over the years.  I am blessed to say that my life was one that he had a profound impact on.

I attended Bill’s memorial service this week on Wednesday and I felt compelled to write about this man not because he and I were particularly close, but because of the enormous respect that I have for him. 

Many people got up to speak of their experiences with Bill, how he helped them in some way, or just the way he made them feel like they were the most important person in the room.  He certainly had the effect on me.  5 year ago, when I got into the Real Estate business, I interviewed with Bill at his firm – Re/Max Results.  I immediately knew that was where I wanted to work and joined that day.  Bill instilled such confidence in me (and all the agents who worked at his firm).  I knew that I was in the right place to begin my career.

Over my 4 years at Re/Max Results, I had various interactions with Bill.  The one that I want to share is my last one.  I had made a bad Real Estate investment in a condo project downtown Minneapolis and I was telling Bill all about it in an informal discussion.  He asked me what my plans were and I had shared with him that I was going to a meeting the next day with the developer to find out what was going on, and to find out if there was an opportunity to work with him to turn the project around.

Bill immediately said, “Tom, I will clear my schedule and go with you.”  When I asked him, why – he said, “well, clearly you could use some help with this one and I am interested in learning more about this…” (referring to the particular project which had made quite a bit of news).

So, the next day he picked me up at the office in Edina and drove me to the meeting.  On our way in, he told me that he would do most of the talking.  I smiled and felt so much better that he was there.  So, we had the meeting.  Of course it didn’t get me anywhere as I am still involved with it.  Afterwards, he looked at me…with kind of a sorrowful grin and informed me that I was indeed screwed.  We had a good laugh and then he said, “Tom, you will get past this one.  We all make mistakes.  I bet you’ll never buy another condo. J”

This may not seem like a great story but what you have to understand is this; (and it truly illustrates this man’s legacy) – Bill Saunders and his business partner owned and operated one of the most successful Re/Max franchises in the US and certainly the most successful one in the State of Minnesota.  He had (at the time) around 500 agents working there.  To say the least, Bill was a very busy individual.  The fact that he took the time to help someone that he didn’t know particularly well shows the measure of his character.  And boy, did he have character. 

On Wednesday – at his memorial service – there had to be around 1000 people in attendance, the majority of which were Realtors ™.  The service lasted for over two hours, people listened intently to those who were speaking and none of them were on their phones, or texting on their Blackberry devices, etc.  Think about that for a minute…this man was so respected that he was able to keep 750+ real estate agents off their phones for over two hours…that is no small feet. 

All of the stories people shared at the service were great, but the thing that stuck with me the most was this; one of his friends of thirty years said that Bill once told him about the three most important things in life:

1. To love
2. To be loved
3. To have people speak kindly of you…and one more thing…
4. PRADA – (you had to know Bill to get this one)

Clearly, Bill exemplified these treasures.  What an example he has given us as to how to conduct our lives.  So – thanks Bill.  Thanks for the lessons and good advice.  Thanks for your help.  Thanks for your friendship.  I will certainly strive to live my life in the same manner in which you have lived yours. 

Bill Saunders Obituary

View of Downtown along the Stone Arch bridge from St. Anthony Main

Since I posted about Cathedral Hill in Saint Paul a couple of days ago, I think it’s fitting to write about the area’s closest Minneapolis match. And then I also get to scratch another of the area’s many, many St. Anthonys *. (Scroll below for the gripping answer as to why so many places are named the same name).

St. Anthony Main is located along the Mississippi River in Northeast Minneapolis just up the river from the University of Minnesota campus. From here the view to downtown in unparalleled. Simply put, it’s gorgeous.

Several streets still has the charming cobblestone of its yesteryear and can easily take you to local nightlife, specialty shops, river walking trails and what it probably most important to any neighborhood - the new high-end grocery (Lunds- the one with the green roof) and the long-established liquor store (Surdyk’s). From here happening downtown workers hop on their razor scooters to get across the bridge to cube city, while empty nester folks relish that child rearing and suburban life is in their past. It’s a good mix.

It’s hip loft and condo land that suck up most of the view of J.J. Hill’s Stone Arch bridge and downtown Minneapolis, but there’s retail there with several restaurants that offer patio dining. Honestly, it’s one of those places that I’m always shocked isn’t flooded with people. Between the historic buildings and the river, it’s got the makings of hipper than hip.

You can learn about the area’s interesting past from one of the horse drawn carriage drivers that will tour you around for about $30 and take you on Nicollet  Island. Or while riding or take the Segway tour from the folks at Magical History Tour. And as always, you can start searching for you next home in St. Anthony Main - and then you can hold the Webdig’s rebate check on the site’s homepage.

[Why so many St. Anthonys? One of the first Europeans to “discover” Minneapolis’s Saint Anthony Falls in the late 1600’s was a Catholic missionary named Father Louis Hennepin. He named the falls after his order’s patron saint, Saint Anthony of Padua and apparently the rest of state followed his lead. It’s Friday, now go impress your friends at Happy Hour.]

Walking just west of downtown St. Paul is one of my favorite Twin Cities locations  -  Cathedral Hill (technically named Ramsey Hill). It can make you feel like you’ve stumbled into a 19th century novel. Brownstone row houses and ivy-covered Victorian homes share the skyline with the majestic Cathedral of St. Paul. Simply put, it’s gorgeous.

Having once sheltered the likes of F. Scott Fitzgerald and Sinclair Lewis, you can half hope residents to emerge from their historic flats wearing newsboy hats - from when they were in style the first time. But don’t mistake bookish with sleepy; this literary Mecca is a happening place given its crush of shops, restaurants and a large food co-op, the Mississippi Market.

You can walk from Nina’s coffeeshop (impress the locals by saying “Ni-naya”) in the historic Blair Arcade and down the stairs to Garrison Keillor’s bookstore, Common Good Books. (Whenever I have a story I’m having trouble writing, I end up a Nina’s just to change things up a bit.)

Cross the street and feel you’ve arrived on a different continent when you enter the restaurant, Moscow on the Hill, where there’s a full menu page devoted entirely to vodka and the best borscht I ever had (hey, don’t knock beet soup until you’ve tried it).

Then watch the curling stones collide at the Saint Paul Curling Club with a post ice-time beer at WA Frost’s – all within three memorable blocks.

But it wasn’t always this nice. The intersection of Selby/Dale used to have a rough reputation. But the turn-around of the formerly aristocratic community started in the 70’s and 80’s. People with little money and a strong back worked very hard to make homes better.  These were urban pioneers who bought property for $10, $15 thousand dollars and put in sweat equity.

President of the Selby Business Association and owner of Great Harvest Bread Company, Bonnie Alton said the area really got a firm footing on its most infamous intersection in the mid-nineties. “Mississippi Market Co-op anchored Selby and Dale when they constructed their building and brought in their store.”  The association now hosts an annual Selby Celebration: a Patio and Dance Party.  “Very courageous, far sighted people made this possible.  I really couldn’t see this event happening [10 years ago].”

St. Paul is lucky it did happen. You can start your search for your own little piece of history with Webdigs right here.

We’ve been hearing about Freddie Mac and Fannie Mae non-stop recently and it got me thinking.  What the heck kind of names are that? I mean these are big time financial institutions not southern cousins.

Not that I can really say much. I’ve got a kid named Milo. It’s a name that causes a visceral response in people. Either they love it as we do - or say with a knowing nod, “Family name?” to which I always say, “Well, it is now.”

But how these mortgage giants got their names is from their acronyms. The Federal National Mortgage Association, FNMA, is Fannie Mae and the Federal Home Loan Mortgage Corporation, FHLMC, is Freddie Mac.  (Not sure how FHL became Freddie, but nicknames are an imperfect science.)

If you’re interested in learning about the history and function of Fannie and Freddie there’s an excellent article here.