By Carl Medford, CRS

Special to the Forum

Buying a townhouse in the Bay Area can be confusing. Is it a condo, townhouse or PUD? Does it matter?

Interestingly, something that “looks” like a townhouse may, in fact, be something else altogether. And, yes, it matters. A lot.

Property categories can be confusing. Normally, a condo is a “unit in space,” can be on any floor and have units above, below, behind, etc. Usually single-level units, they resemble apartments.

In contrast, a townhouse usually sits on the ground with no one above or below, can have any number of levels, may have units on each side but, typically, none behind. They frequently have a small “yard” in the front or back (or a patio).

A PUD (Planned Unit Development) is a multi-use development including a mix of properties such as condos/townhouses, townhouses/single-family homes, etc. Some Bay Area PUDs actually include all three categories in one development — they’re all a part of a single, planned-unit development, hence the name.

Where it gets confusing is during the development process.

In California, since condo developments require far less paperwork, it’s easier for developers to build “condos” than to construct townhouse developments or PUDs. For this reason, properties fitting the classic townhouse definition can be categorized as a condo, townhouse-styled condo, townhouse or PUD. There are actually detached single-family homes in the Bay Area that, as a part of a development, are categorized as condos.

While this may not make any difference to the person living in the home, it matters a lot to agencies such as FHA and HUD. Because of many condominium issues over the past few years, the FHA decided to only lend to condos on HUD’s approved list.*

Unfortunately, many condo developments in the Bay Area are not on the HUD-approved list. They’ve either failed to qualify for any number of reasons or, since FHA loans were not available in the Bay Area until only recently, many developments never bothered doing the extra paperwork to get approved.

The result? Many units that look like townhouses are actually condos that are not on HUD’s approved list.

If you’re buying a “townhouse” with a conventional loan or cash, how it’s categorized doesn’t really matter. FHA or VA? Different altogether. Make sure you (1) have your Realtor discover what it really is and (2) check the approved list before you visit or… you may get your hopes up for nothing.

*See the HUD website at entp.hud.gov/idapp/html/condlook.cfm (not available evenings and weekends).

Carl Medford is a licensed Realtor with Prudential California Realty in Castro Valley and a licensed general contractor. This article is sponsored by the Central County Marketing Association at www.ccmgtoday.com.

By Phil Hunt

Special to the Times

Q: I am the trustee of my father’s living trust. He recently died and we are considering selling the property that is in the trust. Is there anything I should know before I sell it?

A: Yes, there are a number of things you need to do in preparation for the sale. It is my strong recommendation that you list the property with an experienced real estate professional that understands trustee sales. They will be able to guide you through the maze of legalities involved in this type of transaction.

It is also advisable to open a pre-sale escrow with a title company and submit the trust document to them for their review. They will issue you a letter indicating that the document is in order and that you indeed can sell the property as the trustee.

One of the most important actions you can take right now, regardless of whether you sell now or later, is to get an appraisal as of the date of death. There are many good reasons for this, the most important one being the avoidance of taxes after the sale.

There is a thing called “step up in basis” which will forever set the value of the property as of the date of death and the capital gains taxes will be levied according to the profit realized at the time of sale. For example: let’s say the deceased owner paid $50,000 for the property 30 years ago and it is now worth $400,000. That would indicate a profit of $350,000, which creates a tax liability of $70,000 (Fed) and $30,000 (State).

When you get an appraisal as of the date of death, the basis “steps-up” from $50,000 to the current value of $400,000. When you sell for $400,000, no tax is due. It will also be your best guide as to the sales price you should be expecting.

It is commonplace for the heirs to an estate to do their own “valuation” of the property (based upon their desire) and to overprice it, only to have it sit there for months and eventually have to reduce the price to get it sold.

It is also vitally important that you make the property look as good as possible. Clean and empty or staged is the first order of the day. You can not offer the property with all of your father’s possessions in it and expect the buyers to overlook that. Good luck.

Phil Hunt is a real estate broker in Castro Valley. Fax questions to 583-5480.

Average fixed mortgage rates reversed their recent trend last week and moving higher for the first time in six weeks amid April’s better than expected employment report, according to Freddie Mac’s weekly survey.

The 30-year fixed-rate mortgage averaged 3.42 percent, up from 3.35 percent the week before; and the 15-year fixed-rate mortgage averaged 2.61 percent, up from 2.56 percent the previous week.

Adjustable-rate mortgages (ARMs) were mixed. The five-year hybrid ARM edged up to 2.58 percent from 2.56 percent, and the one-year ARM fell t 2.53 percent from 2.56 percent.

By Buzz Bertolero

The Dirt Gardener

Q: We have planted a flowering pear and now I’ve become aware that it’s susceptible to fireblight. I don’t want to replace it. How can I recognize the problem and then treat it?

A: Fireblight is a threat to a wide range of plants belonging to the Rosaceae family. This includes pyracantha, photinia, and fruiting and flowering apples, pears and crabapples, but not roses.

Fireblight is a bacterial disease that infects plants when there is moist, wet conditions during the blooming cycle. I doubt it will be a problem this year because of the dry conditions earlier. However, it was a problem last year and the year before.

The disease always starts at the tip of a branch and works its way downward. The infected leaves turn brown overnight and collapse against the sides of a supporting branch. The stems and branches can also turn black.

The damage looks like it has been hit by a blowtorch; hence, the name fireblight.

Agri-Fos^® Systemic Fungicide by Monterey Lawn and Garden is a chemical solution; however, your timing has to be perfect. It’s too late to spray once the damage appears. Your only option then is to prune the damaged growth out.

Prune off the dead limbs 24 inches below where it has turned brown. When removing fireblight damage, it’s critical that you sterilize your shears, loppers and saw after every cut so your pruning equipment doesn’t spread the disease. Lysol or household bleach solution will work. A nine-to-one ratio of water to bleach is recommended as a disinfectant.

Q: Last year, grubs destroyed our lawn, along with something called creeping bent grass. We removed all the sod in November and there were noticeable grubs and egg masses in the soil that the raccoons and blue jays enjoyed. Is there anything else we can do to prevent the problems from reoccurring before we resod the area?

A: Creeping bent will be much more problematical to prevent than controlling the grub problem. The wind is the primary method of spreading bent grass seeds while a secondary cause can be a lawn mower, if you use a gardening service.

Bent grass thrives with mild temperatures and moist conditions. It stays green most of the year along the coast and where there is a strong marine influence during the summer months.

Some varieties are used on golf course greens because they can be mowed close to the ground. Others, like creeping bent, tend to grow on top of itself forming a mat. Unfortunately, there are no selective herbicides that will kill the bent grass in an established turf. So, your location will be the key as to how quickly it could return.

Grubs are easier to control with the granular Bayer Season Long Grub Control; but I would finish the soil preparation and install the new grass first. Then, apply the grub control after the third mowing with a drop-type spreader. One application should last the entire season, so apply it early before grub season begins.

Buzz Bertolero is Executive Vice President of Navlet’s Garden Centers and a California Certified Nursery Professional. His web address is www.dirgardener.com and you can send questions by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or to 360 Civic Drive, Ste. “D,” Pleasant Hill, CA 94523, and on Facebook at Facebook.com/Buzz-Bertolero.

CAPTION: Fireblight is a bacterial disease that infects plants, like this flowering pear, when there is moist, wet conditions during the blooming cycle.

Recent events in Boston have pushed many Americans to the brink

By Carl Medford, CRS

Special to the Times

Discrimination is a double-edged sword. On one edge, the ability to “discriminate” is good — it helps us choose between good and evil, hot and cold, and so on. It’s a fundamental part of our everyday existence and, when used correctly, protects us and keeps us safe.

On the other edge, however, when turned towards people with the intent of identifying them as belonging to a certain group and consequently treating them in a lesser way than others, it is insidious and wrong.

America has weathered many storms of discrimination. Historically, numerous cultures have suffered at the hands of our nation’s intolerance. African Americans have been the most visible, but the American Indians have their “Trail of Tears,” the Japanese were interned during WWII… and many more.

Flowing out of the turmoil of the 1960s, as the Civil Rights movement pushed discrimination to the front of our nation’s consciousness, Title VIII of the Civil Rights Act of 1968 amended the Fair Housing Act which prohibits discrimination in the sale, rental and financing of dwellings, and in other housing-related transactions.

According to the U.S. Department of Housing and Urban Development (HUD), the following types of discrimination are prohibited: race, color, national origin, religion, sex, familial status (families with children under 18) and disability.

For the most part, we pride ourselves on our tolerance, especially here in the Bay Area. We tell ourselves that we’ve moved past prejudice and embrace all equally. But have we really?

Recent events in Boston and remembrances of 9-11 have pushed many Americans to the brink. It’s once again a part of our national dialogue and we’re seeing flashes of discrimination and hatred across our country and even here in the Central County.

While sometimes blatant, it can manifest secretly, especially in the current housing market. Realtors, when asked about the cultural makeup of any neighborhood, cannot answer. It’s called “steering” and it’s prohibited by law.

However, with multiple offers coming in, a seller, by looking at the names on an offer, can determine ethnicity. If they overlook the financial factors of an offer and exclude them based on race or religion, creed or color or recent national events, they’ve crossed the line and broken the law.

Let’s pray that never happens here.

Carl Medford is a licensed Realtor with Prudential California Realty in Castro Valley. This article is sponsored by the Central County Marketing Association at www.ccmgtoday.com.

By Phil Hunt

Special to the Times

Q: We can no longer pay for our house. We are five months behind in our mortgage payments and not sure what to do. We are both unemployed and have little hope of finding employment here. We are thinking of moving back to Kansas, live with our parents and try to get work there. We have heard that short sales take a long time to actually close and may never close. We think that we will just leave and let the bank foreclose. Can you give us any advice as to what to do?

A: It is impossible for me to give you advice, but I can give you information on the ramifications of each choice. The choice you make here will have far-reaching effects on your future. The information to follow was gleaned from the Fannie Mae disclosure information received Dec. 9, 2010:

FORECLOSURE

If you lose a home in a foreclosure sale, you will be ineligible for a new Fannie Mae-backed loan for five years.

If you apply for a new Fannie Mae-backed loan and have to answer “yes” to the question “Have you ever lost a house in a foreclosure sale in the last seven years or given Deed in Lieu of Foreclosure,” it will affect your interest rate to the higher side.

Your credit score will be lowered by 250-300 points for over three years.

The foreclosure will remain on your public record for 10 years or more.

If you are in the military, police, CIA or other security-sensitive job where a security clearance is required, in most cases, the clearance will be revoked and your position will be terminated.

Be aware that some employers reserve the right to do random credit checks on employees. If you have a foreclosure on your record, you can be reassigned or terminated.

If applying for a job, a foreclosure can be a reason to be rejected for employment.

In some cases, a lender reserves the right to pursue the party who has had a foreclosure with a deficient judgment.

The amount of the deficiency judgment will be affected by the price at which the REO lender is able to sell the property.

SHORT SALE

A homeowner who successfully sells at a short sale will be eligible for a Fannie Mae-backed loan in two years.

Interest rates will not be affected for future loans.

Your credit score could be lowered as little as 50 points, if all other payments are being made.

A short sale is not reported as such on the credit reports, therefore there is no period of time to reset your good credit. Missed payments will affect the credit score negatively and lower your FICO score.

There is no challenge to a security clearance and, therefore, no reason for an employer to terminate the employee.

There typically is no effect on your employment.

Since a short sale is not reported on the credit report, there is no challenge for future employment.

There is a better chance of not having a deficiency judgment after a short sale.

Nothing here should be considered legal or financial advice. Contact an attorney or accountant for advice.

Phil Hunt is a real estate broker in Castro Valley. Fax questions to 583-5480.

Many homeowners looking to maximize the efficiency of their outdoor water use turn to drip irrigation systems as a solution for keeping weeds, diseases, garden pests, scorching heat and high water bills at bay.

Drip irrigation systems are easily set up by even a novice gardener and will deliver an immediate water savings as they place the exact amount of water slowly and evenly at the plant’s roots — where it’s needed most.

Here are some drip basics to help you save water:

1. Start by estimating the water needs of your plants. Knowledgeable and helpful staff at a garden center can assist you in determining just how much water your plants need to be healthy.

Different plants will have different requirements depending on their variety and the conditions of your yard, such as sun exposure and soil type.

2. Drip systems can either be incorporated into an existing automatic sprinkler system or through a manual connection to an outdoor hose faucet. A manual hose-end connection can also be easily automated by using a battery-operated timer.

3. For optimum performance, keep your water pressure under control with a pressure regulator. These simple devices keep your water pressure in the ideal range of within 20 to 50 psi. Drip systems are most efficient when operating at the correct pressure.

4. Include a filter in your system to prevent clogging. Drip uses smaller-diameter openings than traditional sprinklers, so tiny bits of dirt and debris may clog your system if you don’t use a filter. The good news is that filters are relatively inexpensive and easy to install.

A well-designed drip irrigation system will lose practically no water to runoff, deep percolation or evaporation. Steady, consistent watering can also lower plant stress, which leads to healthier and happier plants while lowering your water bill.

An online step-by-step guide to drip irrigation, in addition to interactive demos and a drip calculation program, is available at www.rainbird.com.

— North American Precis. Synd., Inc.

By Buzz Bertolero

The Dirt Gardener

Q: I have a lemon bush that has both scale and that black “sooty” powder on it. I’ve been spraying weekly for the last five weeks. I’ve seen some improvement, but I haven’t been able to get it totally under control. Is there something else I should be doing?

A: Yes, but hold that thought for a moment. Sucking insects such as scale along with aphids, mealybugs and others attack a wide range of plants. Black sooty mold develops on the clear, sticky substance that these insects produce.

There are two types of scale that we typically see on citrus: a tan color one on the leaves and smaller stems or a larger black structure on the larger branches.

The clear resin forms from the insect feeding on the soft tissue. It then rains down on whatever is below; hence, the “sooty” mold can be all over the plant or localized in a section or two.

Scale, regardless of the type, will remain on the host whether they’re dead or alive. After several weeks of spraying, they are more than likely dead.

With the larger types, you can double-check this by puncturing several of them. If the structure disintegrates or flakes off, the scale insects are not viable. The live ones would ooze a liquid. You can physically scrape them off or not worry about them.

Now, back to what else you can do. The black sooty mold takes a long time to disappear. One of the ways to help with the appearance is to encourage new growth by feeding them. Citrus food is the recommended fertilizer, and there are several brands available. The new leaves will help hide the old foliage with the mold on it. It’s an example of the old adage “out of sight, out of mind” at work.

Q: My tulips have finished blooming, and the leaves are drying up. Do I dig the bulbs up and store them away for next year or do I just leave them in the containers?

A: If you are not planning on using the containers for any other purpose, you can leave the bulbs in the pots. Otherwise, dig them up and store them in paper bags.

The dormant bulbs should be stored in a dry location and you can stack one container on top of another. In early November, start to water them; and, two weeks afterward, fertilize with bulb food.

Now, here is the bad news: Unlike daffodils, tulips are not as showy the second year as they were the first year. It takes several years for the bulbs to reach another peak. Many gardeners will not bother trying to store tulips; instead, they replant with new bulbs each fall to ensure that the spring color is always at its peak.

Another option is to mix some of the old bulbs with new ones. But my personal choice is to start fresh, especially with containers.

Buzz Bertolero is Executive Vice President of Navlet’s Garden Centers and a California Certified Nursery Professional. His web address is www.dirgardener.com and you can send questions by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or to 360 Civic Drive, Ste. “D,” Pleasant Hill, CA 94523, and on Facebook at Facebook.com/Buzz-Bertolero.

CAPTION: Scale and other sucking insects can cause a black “sooty” mold to form on your citrus plants.