Buyers Agent Or Listing Agent – Which One is Harder?

Admittedly, neither the role of Buyers Agent role nor the role of Listing Agent can be considered easy. Both have their challenges; both have their positive aspects. That said, I’ve been working both sides of the transaction for more than a decade now, and it’s clear to me that the Listing Agent has the more difficult time. Here’s why:

Buyers Agents find issues; Listing Agents have to solve them.

Buyers Agents want their buyers to have all the information about the house they are about to purchase. All the problems and defects need to be on the table, fully disclosed. For the Buyers Agent, the big questions are
1) What’s wrong with this house; and
2) What will the Seller agree to fix? Those two questions have to be answered before the Buyer can make an informed decision. The Buyers Agent brings in the home inspector and the termite inspector — and if they find anything suspicious, more inspections ensue.

The list of problems and issues generated by the various inspections is put together in the form of a Repair Request by the Buyers Agent, and it typically ends up in the Listing Agent’s lap. You might think that the list goes to the Seller, since the Seller has to respond to it. Usually not. Usually the Seller looks helplessly at the Listing Agent. “What do I have to do?” he or she asks in confusion. The buck is passed.

Sellers are not necessarily unwilling to do repairs, but they want the job done without spending any more money than they have to. That’s understandable. At the same time, the Listing Agent knows that the job needs to be done correctly. If the completed work is not satisfactory to the Buyer, bad things will happen.

You’ve probably heard the saying, “You can have it done quickly, cheaply, or correctly — pick any two.” There’s a lot of truth to that saying, and doing the repairs for a sale is not the time to choose “cheaply.” The work needs to be done on time (i.e., before closing) and it needs to be done correctly (or the Buyer may walk). Nevertheless, the Seller still wants to spend as little as possible. So it falls to the Listing Agent to produce one or more professionals who will do the repairs quickly and correctly, while still giving the Seller a good price.

Over time, agents collect the names of service providers they can trust — contractors, plumbers, structural engineers, landscapers, chimney sweeps, painters, maid services, radon testing labs, concrete driveway repair companies, and so on.. and on.. and on. Access to the list, and the agent’s relationship with the people on the list, comprise an important aspect of the Listing Agent’s value to the Seller.

But having the list is usually not enough. Typically, the Seller is at work all day, and can’t easily be home to meet with repair people. It falls to the Listing Agent to stand in for the Seller during the information gathering period. He or she will call the repair companies, set up appointments to meet them, then go to meet them, and collect the professional opinions and estimates to present to the Seller, along with his or her recommendations on the best course to follow. All this takes time. Once the Seller has agreed to have work done, if the workmen require access to the house, the Listing Agent may be called upon again to open the house to allow the repair people access. When a utility company is involved, this can require hours of waiting just for them to turn up.

Once the work is done, the Listing Agent contacts the Buyers Agent, so the Buyer can come by to check that the work has been properly done. Usually it’s fine, because the service providers on the Listing Agent’s list are dependable. Sometimes something gets overlooked, and then the Listing Agent has to scramble.

I remember a listing that I had a few years ago. The FHA appraiser didn’t come to do the appraisal until a week before closing, and he told the seller that peeling paint on the soffits had to be scraped and repainted. He took the Seller around the house and showed him two areas that needed to be done. This was an FHA requirement, not an item on the Buyer’s Repair Request List.

There was no time to waste, of course. I got my painter to leave the job he was on, to come back and take care of our soffits. Then ONE DAY before closing, the FHA appraiser came back to check that the work had been done. “You missed a spot,” he told the Seller. “There were three areas to be fixed; you only did two.”

My Seller was sure that only two places had been mentioned originally, and I believe him. He knew this issue would stop the closing and he was very, very focused on what the appraiser was saying that day. But, no point in arguing, I had to throw myself on the painter’s mercy yet again, and beg him, “Please, you have to come TODAY!” And, God Bless him, he came.

This is an example of how the Listing Agent’s relationship with his or her service providers makes a big difference. A Seller may hire a painter once every five or ten years, but a Listing Agent needs a painter many times a year. That gives the agent leverage when needed.

What is the Buyers Agent doing while the Listing Agent is dealing with contractors, gathering estimates, and micromanaging repairs? None of this burden falls on the Buyers Agent. He or she found the problems — the Listing Agent has to get them fixed. The Buyers Agent can spend the weeks between contract and closing on vacation in Hawaii!, or out getting three more Buyers under contract.

Briscoe Saga Part VII – Key Objectives of a Home Inspection

“The Things We Do for Love” is the 1976 hit tune by the UK musical group, 10cc. As a Realtor, I have created my own hit tune “The Things We Do Love… for our Clients”!

Some of the most basic services we perform for clients are: meet contractors on site to get estimates for work, provide access as necessary, and follow up to ensure work is performed accordingly; coordinate landscapers, snow removal and house cleaning crews; meet pest inspectors and technicians; obtain inspections by structural engineers, EIFS technicians and other professionals; oversee installation of radon remediation systems; coordinate well and septic inspections as well as any work required; determine availability of re-issue rates for title insurance; obtain Property Owner’s Association documents and review with client; provide access for appraiser as well as information regarding market value of property; confirm with settlement company a survey and title search have been done and discuss options with client if any concerns arise from either; work with purchaser on the obtaining of financing and property insurance.

One of the more recent listings with our group is a horse property in Great Falls, Virginia. The stables were in a serious state of disarray. Fortunately my daughter has horses and therefore experience in cleaning barns. Callie shoveled out the stalls, knocked down cobwebs with a broom, hosed down the paddocks, put down fresh sawdust and generally spruced the place up!

Denison – A U.S. Uranium Mill Monopoly

He who owns the uranium mill makes the rules.

In an interview with Yellowcake Mining director Dr. Robert Rich, he told us that the company that owns a uranium mill controls the area.

Recently, the company announced an ore buying program. Denison Mines said it operates the only uranium mill within a 500-mile radius of Blanding, Utah. Strategically located, the company’s White Mesa mill is in the heart of the Uravan uranium mining district.

In truth, it is the only operating conventional uranium mill in the United States. According to a U.S. Energy Information Agency (EIA) update issued this past May, the other three uranium mills are on standby.

For the time being, Denison has a monopoly on conventional uranium milling in the United States. Under these circumstances, a company can charge whatever it wishes.

Roll back the clock. When you have zero competition, one can buy uranium for the same price others paid in 2005. In Denison’s case, the company’s mill can purchase uranium for about one-quarter to one-third of TradeTech’s long-term uranium price – between US$24 and $US35/pound – depending upon the ore grade.

Two Junior Uranium Companies Respond

Although this could become a cash cow for Denison Mines, two junior uranium mining companies we interviewed sounded like they had been smacked between the eyes with the back end of a billiard stick.

“The ore buying schedule shows the improbability of working with those guys,” Energy Fuels spokesman Gary Steele told StockInterview. “It clearly hurts our cash flow.”

Steele was referring to the 1500 tons of ore his company hoped to stockpile between now and the end of the year. According to Denison’s ore buying schedule posted on the company’s website this past week, Energy Fuels would be lucky to get US$154.40 per ton of ore brought to the White Mesa uranium mill in Blanding, Utah.

Steele told us the ore would likely grade 0.2 percent U3O8 and 0.63 percent V2O5 (vanadium pentoxide) from the company’s mining operations at Whirlwind in Colorado. Using the long-term uranium price indicator and an ‘historical’ pricing for vanadium, published on the Denison website, the Energy Fuels ore should be valued at US$424 per ton.

Under the Denison milling arrangement, Energy Fuels would receive less than US$40/pound for the company’s uranium production.

Where is the profit?

Steele would not provide mining costs at Whirlwind, but he did provide guidance of $0.25 per ton/mile in transportation costs to the Denison mill. Trucking could cost in the neighborhood of $46/ton to ship the ore to Blanding, Utah. Mining costs in the Uravan district are likely to be in the US$60 – 80/ton range, according to Denison’s president Ron Hochstein. Capex could fall into the US$6/ton range, according to estimates provided by another company. And there are likely to be other costs, which we’ve not calculated. Additions could also include environmental permitting and reclamation, and typical sales and administration expenses found in any business enterprise.

Under the ore buying schedule, Energy Fuels might receive about US$42 per ton after expenses, a bit more than US$10/pound – about 7.4 percent of the current spot price. For the 1500-ton lot, Energy Fuels might receive a check of approximately US$230,000. But, after paying its bills, the company’s 2007 production may only yield around $60,000.

It is no wonder that Steele told us, “We’re struggling with the milling question.” Optimistically, Steele announced, “Our plan is to press on with multiple plans, strategies and approaches to produce yellowcake.” He wouldn’t rule out constructing a mill.

We wanted a second opinion. So we talked to Michael Collins, chief executive of Blue Rock Resources.

Blue Rock’s lead project is the Tramp uranium mine in Montrose County, Colorado. It is about 130 miles from the White Mesa mill.

Collins agreed with Steele about the Denison ore buying program. “It’s not the route we would like to take,” Collins told StockInterview. Collins is now putting together his plan of operation to present to the U.S. Bureau of Land Management (BLM) and is planning on raising about C$4.5 million to help develop the project.

He told us the average grades at the Tramp mine are 0.3 percent U3O8 and between 1.5 and 1.7 percent V2O5. The project could host 300,000 pounds U3O8. “We are aiming to define one million pounds,” Collins said. If he does proceed with the Denison program, Collins believes his company could stockpile about 100 thousand tons over the next 18 months.

Denison’s Hochstein confirmed that his company was talking with Energy Fuels, Blue Rock and others about milling agreements.

During our telephone conversation with Collins, we calculated his benefit in using the Denison ore buying program. According to Collins’ calculations, he would receive a little less than US$250 for each ton of uranium/vanadium ore his company shipped to White Mesa for milling.

Collins estimated mining the ore would cost about $65/ton. To ship his ore the 130-mile distance to Blanding would cost between $35 and $40/ton. His infrastructure and development costs would add up to about $9/pound. He told us it was too early to estimate his administrative and other expenses, but Collins gave us the impression he runs a lean operation.

However, his company’s disadvantage is the royalty paid for the Tramp uranium mine. For each ton of ore Blue Rock mines, the company would have to pay a US$90 royalty. Collins said, “The royalty is paid on the spot uranium price.”

Adding up the all-in costs, according to Collins’ estimates, it would cost Blue Rock about US$200/ton, perhaps more, to bring the ore to Denison. Each ton of Blue Rock’s ore would pay out on the order of US$48 to $50/ton, after expenses. Collins told us he would get six pounds U3O8 per ton with his grades. After all is said and done, Blue Rock would be getting between US$8 and $8.50 per pound for uranium.

As for building a uranium mill for the Tramp mine and his company’s other three projects in the area, Collins told us, “A new uranium mill could take over seven years to permit in Colorado.”

Clearly, he was disappointed with the Denison program, saying, “It’s as bad as I could have hoped for.” But he is not ruling out some future agreement with Denison. Collins told us he was still hoping to secure a toll-milling contract for 100 thousand tons. “We’ll finance for a year and stockpile the ore,” Collins said. Fortunately, Blue Rock has other encouraging uranium projects which Collins hopes to develop in conjunction with the Tramp mine.

Under a toll-milling agreement, a miner would pay on the order of 20 percent above the milling costs. Instead of getting only $250/ton from Denison to purchase his ore, Collins would obtain a higher payout and retain ownership of the ore.

Who Owns the Ore?

Also at stake is ownership of the ore, after it is brought to Denison. The miner no longer owns the ore. There is a risk factor for both parties on this item. Both Energy Fuels and Blue Rock told us they wanted to keep the U3O8 after it was milled.

Ron Hochstein told StockInterview, “We will keep it.”

Under the Denison agreement, the company will purchase the ore now and pay out after the samples have been assayed. But, the ore won’t get milled until sometime in 2008. White Mesa is going through a $15 million refurbishment program now. Hochstein said, “We will open in March 2008.”

In reviewing the Denison materials on this program, it doesn’t appear publicly traded companies are the target audience for this program. On the company’s website, we found this notice:

The White Mesa mill Ore Buying Program provides an opportunity for independent miners to sell their uranium and uranium/vanadium ore to Denison Mines (USA) Corp., the operators of the White Mesa mill, located near Blanding, Utah.

We asked Hochstein who would supply the mill feed. “There are many small miners in the Uravan district,” he said. “They’ve built up stockpiles, and we will get them cash flow.” Hochstein was excited by the initial reaction to his company’s news release. “We got a good number of phone calls,” he said. “Some are asking for ‘just uranium’ milling agreements.”

Under the terms for small miners, Denison will only buy in lots of one thousand tons. “In the past miners would drive up to the mill with the ore in a pick up truck,” he explained. “But we require they use licensed transportation contractors now.” Unlike Steele or Collins, he estimated shipping costs would run about fifteen cents per ton.

“They can make some pretty good money,” he told us. For companies such as Energy Fuels and Blue Rock, Hochstein said, “We will negotiate on deals in 100 thousand tons minimum.” He said the payout would have a slight permutation. “We are still working with Energy Fuels, Blue Rock and others,” Hochstein told us.

He did caution, though, “After we buy the ore, it’s Denison’s, not someone else’s.”

Devil’s Advocate

In a previous news-breaking story, when we reported on flooding at ERA’s Ranger operations, we turned to experts to provide us insights about the subject. Again we asked for their opinions.

“Denison is going to be in for a rude awakening,” one mining expert told us. “The small miners can make more money by selling their claims to junior uranium mining companies.”

Another doubted there was much uranium ore stockpiled, telling us, “It may mostly be reclaimed.” An engineer familiar with the area told us, “Usually, every last ounce of uranium ore was shipped to the mill.”

Both agreed there were drawbacks to the revival of ‘dog-hole mining,’ which is the slang for the smaller mom-and-pop operations. “Many of the old-time miners think they will have ‘environmentalist immunity,’ which they won’t,” said one expert. Another told us, “The dog-hole miners are going to be living night and day with MSHA inspectors.” MSHA is the acronym for the federal Mining Safety and Health Administration.

“In the last cycle, one could take an MSHA inspector out for supper and drinks and he would be lenient, or look the other way,” said the engineer. “But in today’s environment, they are sticklers for the regulations.”

As for the incoming phone calls to Denison about selling stockpiled ore, one expert thought most of the callers would not be legitimate. “There were 500 different operations at one time in the Uravan,” he said. “Maybe ten percent are still around, and most of the miners will be in their 60s now.” Technical expertise is a must, and the industry already has a labor shortage.

In dog hole mining, at least three people are required to mine. Two would work in pairs down the hole and MSHA regulations required one to be on the surface. “The minimum three-man crew would cost about $600/day for labor costs,” said one expert. Then, there are the equipment costs. Radon levels must be tested. “Each piece of equipment would cost at least $50/day just to operate,” he told us.

For those hoping to strike it rich by mining uranium in the Uravan, brand-new equipment costing more than $100,000 is a deterrent. Skilled labor is another, as many uranium juniors have discovered or are discovering.

As for Denison’s ore buying program, time will tell. For those expecting the uranium market to be flooded with ‘tales of stockpiled uranium ore,’ it is unlikely to materialize. Denison expects 40,000 tons of uranium ore during the first year, which amounts to about 40 lots of stockpiled ore.

After that, it is really anyone’s guess as to whether Denison turns to Energy Fuels, Blue Rock and others they’ve talked to, or relies on the mom-and-pop projects to feed White Mesa.

Within the next three years, Uranium One’s Shootaring Canyon in Ticaboo (Utah) could open and offer alternative pricing for mill feed for the area. Ticaboo and Blanding are a little more than two hours driving distance apart.

Energy Fuels’ president George Glasier told a reporter in June, “We believe there is plenty of room for two mills.” He reportedly is preparing to submit applications by the end of this year for a uranium mill in Montrose County, Colorado.

In June 2006, Strathmore Minerals began the process to develop its proposed uranium mill near Grants, New Mexico, less than 300 miles from Blanding. This past November, the company announced the purchase of land for the mill site and initiated the first step required by the U.S. Nuclear Regulatory Commission as part of the license application package.

To the north, Rio Tinto’s Sweetwater uranium mill in Wyoming has a capacity of 3,000 tons/day. It is presently the largest uranium mill in the United States. Nearly 400 miles to the east, the uranium mill at Canon City (Colorado) has been beset by environmental problems, including air quality violations and contamination issues. It remains on standby indefinitely.

Indoor Pollution – How to Efficiently Reduce Home Interior Contaminants

Home interior is one of the most important parts of the house because it is basically the haven where you rest and do salient activities in your home. Thus make sure that this sanctuary gets topmost quality especially through reducing indoor pollution.

There are important things and ways on how to reduce indoor pollution and make sure that you enjoy healthy and quality lifestyle you truly deserved.

One very salient step to take is to have a thorough information and knowledge regarding the indoor pollutants prevalent in homes. You have to know your foe in order to get fully equipped for this pressing battle.

There are a lot of contaminants in your home interiors especially the elements that you usually produce through your household activities and chores. You may also have habits and practices which encourage and multiply the occurrence of indoor pollutions.

For instance, the smoke produced through tobacco and cigarette smoking is definitely a hazardous component in home interiors. The debris, dirt and dusts entering the house through your outdoor footwear are likewise potentially dangerous to your health and damaging to your property.

Other common home interior pollutions include pollen, chemicals from home products, carbon monoxides, radon gases, pesticides, molds and mildews among others.

In order to combat these hazardous elements in the house, it is vitally important to make sure that you have the right installation and components. For instance, you can install humidifiers and dehumidifiers for the right and proper humidity level in the house. There are actually products you can install to make sure that you have your house under control. This will help you prevent the growth of mildew and molds.

There are other elements and components in the house for effective upkeep of your home quality and reduction of indoor pollution. For instance, have furnace filters in order to get rid of contaminants coming from your home furnace or fireplace. There are also air conditioner filters which screen the impure substances coming from this cooling system.

Aside from installation of these basic and vital home components and systems, it also helps to understand that your home interiors can also be improved in its quality through primarily changing and improving your own lifestyle and practices.

For instance, if you are smoking, try not to do it indoors because the smoke is undoubtedly a hazardous substance especially if you have weak lungs or there are young children around.

Radon Gas – Radon Mitigation and Testing

What is Radon gas?
Radon gas is a radioactive gas that occurs naturally in the environment, mainly in the soil. It is present in uranium rich rocks and escapes into the air through cracks in the rocks. It is colorless, odorless, and tasteless.

Is Radan Gas dangerous?
Radon gas can be a potential health hazard if it seeps in large amounts into your house. Long-term exposure to Radon can lead to cancer. Smokers face higher health risks than non-smokers from Radon contamination. Detecting Radon contamination and safeguarding your house from its ill-effects, however, is easy and testing should be regularly undertaken to determine the levels of Radon in your area.

What are the chances of finding Radon contamination in your house?
Radon gas contamination is more common in the USA and in Europe than in Asia and the Middle-East. Aside from the geologically favorable conditions, there is the cold weather factor. American and European homes are more likely to have tightly sealed, rarely opened windows and perennially shut doors. In comparison, homes in Asia and the Middle-East are likely to have good ventilation throughout, with air circulating freely. Radon contamination is low or negligible in well-ventilated places. On the other hand, it is pretty high in enclosed, poorly ventilated homes. Radon gas levels are also high in houses without a basement than in houses with basements.

The levels of Radon gas differ from the house to house. Houses in the same neighborhood can show different levels. For example, if the Radon contamination levels in your neighbor’s house are low, they could still be high on your property. Or vice versa. So you cannot depend on the check results of the test done on your neighbor’s house. Every house has to be inspected on a separate basis.

How do you check your house for Radon contamination?
You can either contact a professional service to check the Radon levels in your house or you can do it yourself. The actual Radon testing is not difficult. It is done in two ways – either by a passive Radon testing method or an active Radon testing method. Or you can simultaneously use both methods. You can go for short term testing or long term testing. Short term Radon testing requires about 2 to 4 days for completion. Long term Radon testing can take as long as 90 days. Long term testing is more thorough, but, given the time requirement, many house owners go for the short term testing.

What is the passive Radon testing method?
Passive Radon testing method is done using testing devices like charcoal cannisters or alpha-track detectors that require no electricity power to use and which are merely placed in the place to be tested for the duration of the test. The exposed to the air of the place being tested brings about certain chemical changes in the device which are then analyzed in a laboratory.

What is the active Radon testing method?
Active Radon testing devices require electricity to function. These are commonly used by professionals and are considered more reliable. The Radon levels are constantly checked and monitored in the active testing devices.

How is the testing for Radon contamination carried out?
As mentioned earlier, testing is done using either the passive testing device or the active testing device or, in some cases, by using both appliances. You can carry out the testing yourself if money is an issue or you can seek the assistance of a qualified professional. Calling in a professional might perhaps ensure a more thorough checking and a better result, and, if you happen to be selling the house, a professional certification of low Radon gas levels will come in very handy.

The actual Radon testing is carried out in frequently used portions of the house. To start with, the doors and windows of the rooms to be checked are kept mostly shut for several hours before testing is undertaken and also throughout the testing. The Radon testing device or devices are placed a little above the ground in the room for the prescribed duration. After that time-frame, the device is turned over to the laboratory and analyzed. If the Radon levels are under 4pCi/L, you are alright, that’s pretty acceptable. If they are above that level, then you will need to reduce the radon levels by using a process called Radon gas mitigation.

What are the various Radon mitigation methods?
Using the right Radon mitigation techniques, you can either reduce the Radon levels in your home or you can entirely prevent Radon gas from entering your home.

How Does Pollution Affect the Environment

That must have given you a rough idea as to what is environmental pollution and how is it caused. Each of these forms of pollution affect the environment adversely, and eventually trigger a series of domino effects on the Earth. Given below are the details of their harmful effects on the environment, with special reference to their effects on human beings, which will shed some light on how does pollution affect nature.

Air Pollution: This is by far one of the most widespread forms of pollution, and the effects of the same are also quite severe. When it comes to health hazards, the effects of air pollution include a wide range of diseases, right from viral infection to life threatening conditions such as heart attacks. Other than this, air pollution also has adverse effects on the environment in which we live. It has the tendency to cause severe environmental issues such as global warming and acid rain. Wondering how does pollution affect global warming? As we mentioned earlier the amount of greenhouse gases in the atmosphere is increasing rapidly, and this increase in their concentration is trapping the radiations of the Sun and causing the global temperatures to soar.

Water Pollution: Water is one of the basic necessities when it comes to existence of life on the planet, and therefore pollution of same is bound to impact the numerous species which are dependent on water directly or indirectly. As in case of air pollution, even the effects of water pollution on humans revolve around various health disorders. The pollutants which contaminate various water sources reach our body even if we don’t come in contact with the polluted water directly. For instance, fish species get contaminated as a result of oil spills, and the same contaminants enter our body when we consume this fish.

Soil Pollution: Like water, even soil is one of the major components of the planet as it supports plant life. Plants are important for the existence of humans and other lifeforms because only they have the ability to prepare their own food by means of photosynthesis, while other lifeforms (including humans) depend on them for our energy requirements. As a result of this, understanding soil pollution causes and effects is of immense importance. Some of the major effects of soil pollution on the environment include decrease in soil fertility, disruption of food chain, toxic crop produce, etc.

Effects of Radioactive Pollution

Causes of Radioactive Pollution
Radioactive pollution is rising because of the increase in radioactivity uses. It occurs mostly from the waste products that are left behind after the use of radioactive substances. These materials are disposed off without any precautionary measures to isolate the emissions, which then contaminates the air, soil and water. Large amount of radioactive waste is generated from nuclear reactors used in nuclear power plants and for many other purposes. It may occur during extraction and refining of the radioactive material. Nuclear accidents and nuclear explosions are two of the worst man-made sources of radioactive pollution.

Effects of Radioactive Pollution on the Environment
When the soil gets contaminated by radioactive substances, then it is transferred to the plants growing on it. It can lead to genetic mutation of the plants’ DNA and affect its normal functioning. Some of the plants may die after such exposure while others may develop weak seeds. When any part of the contaminated plant, including the fruits are consumed by human beings, then it causes serious health risks. Radioactive emissions from nuclear weapons are considered as the most harmful for the environment, as they stay in the atmosphere for as long as a hundred years. Thus, it affects several generations. Similarly, the radioactive substances from the land surface that flows down to the water bodies remain there for years to come. It causes harm to the aquatic animals. Thus, we can say that radioactive pollution has a destructive effect on the entire ecosystem.

Effects of Radioactive Pollution on Human Beings
The effects of radioactive pollution on human beings often vary from mild to severe, and it largely depends on the level of exposure to the emissions. Among the particles emitted from these substances, the effects of alpha particles is the lowest and the gamma rays are the most dangerous. When the human body is exposed to radiation, then it reacts with its biological molecules and ions are formed in the process. This leads to the formation of a large number of free radicals that destroy vital molecular components like proteins, enzymes, nucleic acids, etc. Low levels of exposure on a small portion of the body may just affect the cell membranes and cause mild skin irritation. Other immediate effects of short span exposure of nuclear radiation are nausea, vomiting, diarrhea, loss of hair and nails, bruises due to subcutaneous bleeding, etc.

Long term exposure has far more serious health effects. The rapidly growing cells like that of the skin, bone marrow, blood, intestines, and gonads, are more sensitive towards radioactive emissions. On the other hand, cells that do not undergo rapid cell division like bone cells, muscle cells, and nervous cells, cannot be damaged so easily. It has a serious threat to various systems of the body that include the cardiac system, neurological system and reproductive system. The radioactive rays can cause irreparable damage to the DNA molecules and lead to a life-threatening condition. It causes genetic mutations that promote the growth of cancerous cells in the body. People with heavy radiation exposure are prone to skin cancer, lung cancer, thyroid cancer, etc. The effects of genetic mutation tend to pass on to the future generations as well. In other words, if the parents are exposed to nuclear radiation, then their child could be born with genetic birth defects and retardation.

The Mortgage Process

What Happens First?

When you contact a lender, you will be connected to a loan officer to discuss your specific mortgage needs and financial situation, the property type and location, your price range, as well as how long you plan to own the property. Be prepared to answer questions concerning your credit history, assets, and income.
If you are a first time homebuyer, you will be asked additional questions to determine how much you think you can afford for a monthly payment and what type of loan you want. Based on the information you provide, you will be given several loan scenarios to consider.

Pre-qualification

The first step of the process is the pre-qualification. Based on the information you provide, the lender will issue a “pre-qualification letter” stating the amount you’re eligible to borrow in your loan.

My letter is simply a boilerplate with your name, address, etc. “Based on information provided by you concerning your credit profile, income, and assets, you have been pre-qualified for a loan in the amount of X”. Blah blah bla…congrats!

You should get this letter before you begin shopping for a home to demonstrate that you are a serious contender when putting in a bid on a property. It’s a simple way to show that you made an effort to find out how much you can pay and how much you can spend. Since the pre-qualification is a demonstration of your action but not a real mortgage approval, there is not much value to it. You should update your pre-qualification every 60 days, since everyone in the real estate industry knows that although the pre-qualification shows commitment on your part, it is not really worth the paper it is written on.

The lender should never charge a fee for this service nor run a credit report. If they insist on running your credit, hang up and find someone else. Inquiries on your credit report that do not result in a loan can lower your credit rating. Wait until you decide who to do business with. It’s important to remember that this letter is NOT an approval for a loan. The formal application process has not yet begun.

When you receive your pre-qualification letter, you’ll also receive a document checklist. It lists all the supporting documents you’ll need to provide for the loan application. It is a good idea to start a separate folder for these documents and keep it updated through the process.

Pre-approval

In contrast to a pre-qualification, the “pre-approval” happens when you’ve actually completed and signed the loan application and have provided the necessary documents for verification of your income, assets, and credit. At this point, the lender will run your credit report and you will probably have to pay an application fee. In my opinion, any application fee over $300 is too much.

This document is really an approval directly from the lender you’ve chosen. At this point, you don’t need to have a specific property in mind. This is merely considered a credit approval and can be used with any qualified property. The pre-approval is good for up to 120 days. If you haven’t found a home in that time, your lender can update this document for you simply by obtaining your current pay stubs and bank statements. This is still not a commitment letter until the property information is embedded into the approval. For this, you will need a property, a signed contract, a cancelled down payment check, and an appraisal. At this time you will have a full-blown commitment letter from your lender and will be on your way to the closing.

Application

The loan application is a package of several documents (my package has five). You want to work with a loan officer that completes the forms with you, for you, and just tells you where to sign. When clients say, “just send it to me”, I picture them pulling an all-nighter making sure that every item is correct and complete. If I do it, it takes ten minutes of you answering questions.

You can complete them in person or over the phone. I prefer over the phone for speed. Once the application is complete, your loan officer will send the package to you, along with instructions and a list of other documents you’ll still need to send in. The required documents differ from borrower to borrower, based on the individual’s employment situation and personal finances as well as the loan type. Documents may be sent back and forth by email, overnight, or by snail mail.

Processing

Once your lender receives your loan package, your file is “opened.” The documents will be placed in a specific order, the file will be entered into a mortgage-processing program, a credit report will be obtained, and all lender disclosures will be sent to you and other necessary parties. You’ll be contacted if your lender has any questions or if any documents are missing. The processing will continue as you and the lender collect the information needed to present the loan for approval.

Underwriting

The lender’s underwriter will receive a complete file with all necessary documents pertaining to you and the property you are buying. The underwriter has the final review and determination of the loan approval. Typically, if there is a Fannie Mae or lender approval, the underwriter will simply make sure that your file has all the documents and you meet the criteria of the loan agreement. The underwriter may ask for additional information. Each lender has its own “overlays”. Overlays are the list of requirements and criteria to approve your loan for a certain program. Depending on which lender you go to and which person underwrites the loan, different things might be asked of you. If your loan is solid then it can be obtained almost anywhere. If you are borderline, that is when the lender looks a little harder at you. No worry – with a good loan officer, you can get the loan you need.

Once you have an approval with the list of additional items required, you are almost there. Only consider this a commitment letter if you can meet these requirements.

Technology and Your Loan

Over the years, technology has streamlined the mortgage process and sped up the time needed for approval. This is why you can get a commitment letter in two days. Although not necessary, it is nice to know you can! Most lenders have the ability to create a virtual file of your loan application. This is the preferred method to enable the lenders to expedite the process and save thousands of trees. Eventually this will be the only method.

For instance, this is how we do it. You send us your signed “hardcopy” loan papers with all the supporting documents requested. Using the information in the pay stubs, W-2 forms and bank statements you submitted, we enter the data into our mortgage processing software, run your credit report, and upload it into the system showing your liabilities and monthly payments. We make sure the loan programs are what you requested, the numbers and data are all correct, and that it looks pretty perfect.

At this point, we have a complete file and can upload it to any major lender or directly to Fannie Mae for approval. By upload, I mean literally go into (using a partnership password) their mortgage system and transfer our data file into it. In less than 60 seconds, the computer will spit out an approval (we hope) with a list of documents the lender wants to see and questions they have. We go through the itemized list, gather the requested documents to scan and upload into the virtual file. We will answer any questions or correct anything that might be an error in the system. (After all, it is a computer we are working with!)

Within a day or so, a real person at the bank will receive the virtual file via internal email and download it to their computer. Using their computer monitor, they will review all of the documents, make sure everything is in order, and issue the final approval. Loose ends will be put together and you will receive a written commitment letter from the bank. Still, the only people in this chain that have touched the actual papers are you and my office. Here is the key: you want your loan to go to a lender that does everything electronically to speed up the process considerably. If you go to a mortgage broker or banker, you want them to be able to send your loan package electronically to several lenders simultaneously. This will ensure you receive more than one approval to choose from. It will also allow you to have backups in case one approval does not work out. Lastly, if you are approved at a few banks, you can sit back and see which one will give you the best rate, and at the press of a button your loan can be completed and closed there!

With the press of a button, your loan can be processed, approved, locked in, and closed. Of course, there will still be phone calls, emails, and paperwork, but this lightens the load for all.
How can your mortgage be approved so quickly? The system used by the lenders read the information in the virtual file and do a risk assessment of the income, assets, FICO score, liabilities, and loan to value. The computer will decide based on these factors whether the loan is doable and layer the risk. The riskier your loan assessment, the more documents the bank will ask for.

Credit Report

Your lender obtains a “tri-merge” credit report from an authorized credit agency. A tri-merge is a combination of the three major credit bureau reports, showing your payment history and FICO score from each. The lender will use the middle (numerical) score as your rating. The credit report is valid for 120 days. If you haven’t purchased a property by then, your lender will obtain a more current report. If nothing has changed, your FICO score should be the same, so do not be concerned.

Each time you go to a different lender, they will run your credit report for their own file, so you will have multiple inquiries. If you go to a mortgage broker or banker, they will usually run your credit report once and assign it over to the lender with your loan. Therefore, you have one inquiry, which will have less effect on your FICO score. This is not to say that the ultimate lender will not run your credit or rerun it right before the loan closes. So try not to do anything big until the closing, such as buy a new car.

Did I say this before? Do not let anybody run your credit report until you are ready to do business with them!

Appraisal

An appraisal determines the market value of your home by comparing the property you want to purchase or refinance to three similar properties that have sold in the past 6 months within a 1-mile radius, preferably in the same neighborhood. Your loan amount is determined by the contract price or the home’s appraised value, whichever is lower. Therefore, you want the appraised value to be at least the contract price.

The lender will order the appraisal on your behalf as part of the mortgage application process. If you go to separate banks yourself, they will each want to order their own. If you go to a mortgage banker or broker, they will be able to order one appraisal and transfer it to any lender they do business with. If you have an old appraisal, they will not use it unless it is less than four months old and they approve the appraiser. You are entitled, by law, to receive a copy of your appraisal. Ask for it. I send mine out as part of a post-closing thank you package.

Engineer Report and Other Inspections

After you find a home, you should have various inspections done including engineering, roof, termite, asbestos, mold, radon, water, and septic. The most important test is the engineering inspection, which examines structural items such as the foundation, roof, exterior, windows, and heating and cooling systems – expensive things to fix.

Depending on the area, either you get the inspections before you sign or you sign and have a few days to get them. Either way, you need to get your inspections quickly. You should line up an inspector while shopping for a home, so you have one on standby to use. This way you will know in advance how much the fee is, what it includes, and how much time they need to schedule an appointment.

The realtor will give you a few names of inspectors to call. This is too close for comfort for me. (Sorry- to all my realtor friends out there!) This is the only place in this book where I will tell you to find a service out of the local listings. When you look under Home Inspection, you will see some large franchise companies as well as a few independents. Call a few and interview them.

I recommend you use an engineer to do the inspections rather than a licensed home inspector, simply because of experience and education. The tests typically cost between $400 and $800. If damage is found, you and your realtor can negotiate repairs with the seller. I also recommend taking a reduction in price and then having it fixed yourself to ensure a quality repair. In a hot market, it is harder to negotiate the price down. When the market is soft, sellers are more apt to shave dollars off for repairs to keep a buyer happy.

These tests are not necessary if you’re buying a condo or co-op, unless it’s in a small building under 8 units. In that case, you have a larger interest in ownership and it will be easier to get the engineer into the nooks and crannies of the building.

Building Information: Co-ops and Condos

A condo/co-op is an apartment purchased in a building owned and/or managed by a company. The ownership of the apartment includes use and occupancy of the public areas. Occupants pay a monthly fee to a management company for all services provided and possible charges associated with the common ownership. So, you want to make sure you are not buying into a bad situation and neither does your lender! Go to the chapter on Property Types to see more information.

The lender will require information on the building and managing corporation, such as financial stability and occupancy. When refinancing an existing co-op loan, as an owner you already have most of the information handy or can get it directly from the management company. If you are purchasing, there will be a slew of paperwork your realtor, attorney, and lender will review. Your realtor will be able to answer questions on subletting, pets, and what type of people live there. Your attorney will receive copies of the financial statements and by-laws and make sure the building is financially sound and stable.

The bank will do a more extensive review of the financials as well as other items. They will look at number of owner-occupied units, insurance, mortgage on the building itself, and cash amount in reserves. If the lender rejects the building, you may want to consider living elsewhere.

There is such a thing called the “Renegade Theory”, especially in large urban cities. A renegade – we will define – as one of the first on the scene. So, if the building is in bad shape financially and has a large investor ownership, it might be harder to get good financing. If it is hard to get financing, the units will be priced lower to entice buyers that can come up with alternative financing. Alternatives are higher interest rates on private loans, lenders that specialize in these buildings, or paying all cash. The building could be in an up-and-coming area. This is what my Mother calls a “diamond in the rough.” I say if you have the tolerance for risk, go for it. Do your research and it just might pay off for you.

Commitment Letter

Once you’re approved for the loan, you’ll receive an actual commitment letter from the lender with a loan amount, expiration date, term, locked-in rate (if desired), and property address. Any outstanding conditions required by the underwriter will be listed in the commitment letter. Send this letter to your attorney for their review. Your loan officer and your attorney will go through the details with you. Make sure you can meet all the conditions required by the underwriter because the lender will not give you the money unless you can give the underwriter everything they ask for first. This loan commitment is good for at least 3-4 months and can be updated simply by faxing your current asset and income information to your loan officer…assuming your financial profile remains the same.

Clearing Conditions

You’ll need to provide any additional items requested by the lender and listed in the commitment letter prior to closing. Make sure you know exactly what you need to get to the bank in order to “clear” (that’s what they call it!) your loan to close. You might need to bring something to the closing also, like proof you sold your house or certified funds from a 401k. There might be impossible requests that you cannot provide and need to work around or you will have to go to another lender.

Your attorney also needs to get some stuff over to the bank, which you do not have to worry about. Remember to shop for insurance a few weeks before the closing, because this is another big thing to comparison shop for.

This is the stressful part, because lenders usually wait until the last minute to do final reviews and request things at the eleventh hour. All parties will work together to smooth out the organized chaos, and you’ll close on the property. Although the whole process can be stressful, once you close, you will forget all about it! I promise!

Closing for a Purchase

Once the lender is ready to close, they will begin coordinating the closing date and time with you and all parties involved. Depending on the state you live in, there can be as little as one other person in the room or as many as ten. In New York State, I can count at least four suits in the room! Your lawyer, seller’s lawyer, bank attorney, title company representative, realtors ….oh and you!

If you have a mortgage broker or banker, they should serve as the point person for all parties, ordering your closing documents, and arranging for proceeds transferred from your lender. Your attorney will tell you how much money in certified checks you’ll need to bring to the closing, typically the day before closing. Don’t forget to bring a government-issued, active photo ID to the closing (i.e., driver’s license or passport) or you won’t be able to sign the required paperwork. Although this whole process can be stressful, once you close, you will forget all about it! Did I say that before?

Closing for Refinances

The closing is more flexible with a refinance because there are usually no time constraints and fewer people involved. Even if the bank is ready to close, you can wait until you’re ready or locked in at the lowest rate available.

Depending on the state, the lender will have an attorney, a title company agent, or an escrow agent represent them at the closing and arrange for the money to be dispersed. You are not required to have an attorney represent you at a refinance closing. I think it is neurotic and a waste of money, but so be it if you feel the need! Don’t be afraid to ask questions. It is your money and your life! (PS: The closing agent is not paid unless the loan closes, so they will patiently make sure it does.)

At the closing they will pay off your existing mortgage, any second mortgage and any other obligations you wish to pay off directly from the proceeds of the new mortgage. Your final closing costs are itemized and taken directly from your new mortgage proceeds at the closing. Therefore, unless you’re taking out less money than you owe, there’s no need to bring a check to the closing, but don’t forget to bring along your government-issued active photo ID (i.e., driver’s license or passport).

Post-closing

After the closing, you’ll receive a post-closing package from your lender with a copy of your appraisal and other important documents. Your attorney will also give you a package with copies of all documents signed at closing. Keep these documents in a safe place, and give a copy of your closing statement to your accountant to use for tax purposes. Also, make sure that you receive a copy of your recorded deed and mortgage. This can take up to 6 months, depending on the county the property is in. You need this stuff to sell or refinance later on and will not want to deal with it then.

Pre-Heated Warning Sequence May Help Us Predict Major Earthquakes

Major Earthquakes and Pre-Heated Warning Sequence May Help Us Predict Over the years there have been reports of strange weather prior to Earth Quakes, and much has been called nothing more than part of the the post traumatic mental fatigue which goes along with such black swan major Earthquake events. There have been claims of blue, green, pink, and other colors on the horizon near sun set, and other totally baffling and strange anomalies and phenomena. Most folks chocked it off to crazy people.

But now the scientific community is moving the other way and embracing these concepts, and perhaps wants to use such anomalies to help predict Earthquakes a few days ahead of time. Is that possible? I’ve always believed so, but you have to watch out discussing these things or someone might accuse you of staying up late at night and tuning into the Coast-to-Coast Am late night conspiracy theory and alien abduction programming.

Nevertheless, now there is proof of the release of gases, and heat, even radon a few days prior to a major earthquake. Sure, enough, it seems we have caught it all on camera, or by satellite rather. These anomalies do exist and some Russian Scientists are now saying; we told you so.

In fact, there was a very interesting article recently on the MIT Technology Review’s blog network “The Physics arXiv Blog” titled Atmosphere Above Japan Heated Rapidly Before M9 Earthquake – Infrared Emissions Above The Epicenter Increased Dramatically in the Days Before the Devastating Earthquake in Japan, Say Scientists” posted by the Famous KFC on May 18, 2011. The article stated;

“Before the M9 earthquake, the total electron content of the ionosphere increased dramatically over the epicentre, reaching a maximum three days before the quake struck. Satellite observations showed a big increase in infrared emissions from above the epicentre, which peaked in the hours before the quake -the atmosphere was heating up.”

Could it have been radon gas leaking, asked some of the observers pouring over the data, and the answer is sure, that is a possibility, and this is not the first observation of this type, as some Russian Researcher have been talking about precursory earthquake information, and findings for quite some time now. There have also been some observations by Cal Tech and others on this topic over the years, as well as some reputable presenters at a 2005 conference in California.

Cellar and Basement Waterproofing by the Drainage Method – Part 1 – The Drainage Channel

Underfloor drainage channels have been used for centuries but until the early 1990′s they consisted of no more than a perforated pipe based on the Victorian idea of the porous clay pipe (or drain tile) often known as the French Drain after Henry French who took the idea from the UK to new England in 1856.

Modern derivative of the French drain involve different profiles for the pipe many are flattened which allow them to be place under the floor but above the footing which protects them from silting a d clogging, a common problem that affects old fashioned drain tile systems. It is generally considered a good idea to keep the drain system at this level for this very reason. It is also considered good practice to include inspection ports for servicing and maintenance. For an inspection port to be effective it should be more than just a 50mm diameter pipe connecting into the system. Ports around 150mm long and 50mm wide are better as they allow one to see inside the drainage channel and to effectively use a hose pipe to clean out if necessary. Some designers have included a special ‘corner port’ which allows access in two directions, i.e. along two walls from the one spot thus combining the functionality of one corner and two ports which would be necessary in a less imaginative system. The ‘telescopic port’ also allows the top of the port to be levelled flush with the floor which can be a problem with static height ports.

The drainage channels invariably have holes to let water into them. It is critical to ensure that the holes are smaller than the size of the stones that normally surround the channel otherwise the stones will enter and restrict the flow of water. Some new designs have replaced circular or oval holes with narrow slits in order to prevent this problem.

The outlet from the drainage channel should be sufficiently sized to not restrict the flow of water as it leaves the channel and enters the sump chamber. It is a mistake to use a 50mm diameter pipe as the outlet for a channel system that can deliver as much water as a 4″ diameter pipe. This seems like common sense yet it is a common mistake.

Many modern systems include a vertical flange to allow any surface water on the wall to drain down into the system. In order for this to be effective the back of the flange has to remain open, however there is a growing body of opinion against this practice. Open backed flanges allow moisture vapour and microbial odours and spores to vent up into the room together with Radon gas if the property is in an areas affected by Radon. Also, having a wet wall draining down into the system is unhealthy as it contributes to mould and humidity to the atmosphere in the basement and the house above. It is considered better practice to have a sealed flange and if there is water running down the wall to conceal this with a suitable vapour-proof membrane.

Finally, a plastic channel that is constantly wet can develop a microbial slime which is unhealthy and can result in a restriction of water-flow. It is therefore a good idea to incorporate an anti-microbial additive such as Silver Nitrate into the plastic at the manufacturing stage.