Claims attorney gives retooled GCCF high marks

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The operation hit some snags in the beginning, but our experience is that (GCCF is) now paying emergency claims quickly.

By Peter Taaffe, Attorney Buzbee Law Firm
© 2010 HomeAway.com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - The Gulf Coast Claims Facility (GCCF) has been up and running since August 23, 2010.

The operation hit some snags in the beginning, but our experience is that they are now paying emergency claims quickly.

Our clients are, by and large, receiving substantial emergency payments to compensate them for the damages they incurred because of the oil spilled into the Gulf.

This includes vacation rental owners, hotel owners and other property owners.

Accepting payments on your claim does not require a release of BP or any other company from liability.

Our advice to those who have suffered damages is to file a claim immediately.

We strongly advise that vacation rental owners file claims for emergency payments if they have suffered any damages, including lost income, due to the spill. If you think it will be too complicated or too time-consuming, consider hiring an attorney or claims adjuster to assist you.

For more information on hiring a lawyer, see "Oil disaster claims: Hiring a lawyer."

Claims Administrator Kenneth Feinberg has said that he will accept claims for emergency payments until November 23, 2010. He has advised that these claims will be assessed immediately and paid in full when warranted.

After November 23, GCCF will be in a position to assess and entertain full settlement claims for final payments. GCCF has not specified how it will make these assessments. Some attention is going to ongoing clean up measures and research to determine long term effects of the oil.

Litigation update

All lawsuits related to the Deepwater Horizon explosion and resulting oil spill have been consolidated into what's called "Multi-District Litigation" (MDL) to be heard by Judge Carl Barbier in New Orleans federal court.

This means that any lawsuit, regardless of where it was filed, will be transferred to Barbier's court.

Barbier has held several status conferences, has appointed committees and has set a trial date (February 2012) for a trial on whether the rig owner, Transocean, is entitled to limit its liability to $27 million (the value of the rig as it sits on the ocean floor).

The progress of the litigation has no effect on the GCCF's claims work.

Peter Taaffe is an attorney at the Buzbee Law Firm, headquartered in Houston, TX. He also offers the informational GulfOilSpillFirm.com web site for news and information on the claims process. He and his firm represents 15 workers on the Deepwater Horizon oil platform, multiple Florida property owners and multiple fisherman, oystermen, and fishing industry workers.

Taaffe's comments are general in nature, based on his legal experience but not to be confused with legal advice. Speak with your own legal counsel about matters specific to your unique situation.

Other stories about the oil spill claims and litigation:

• Oil disaster claims: Hiring a lawyer
• Making the case for lost-property-value claims in the Gulf oil disaster zone
• Legal Q&A: Can a foreigner file a claim?
• Group Power: Restaurant association hires legal muscle to pressure claims system
• BP Claims Update: Gulf disaster lawsuits move to New Orleans

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Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

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Vacation rentals hot in New Orleans, popular with more business travelers

Banks crank up marketing to
overcome overdraft fee losses

The BP oil disaster hasn't stopped vacation rental owners in New Orleans from enjoying the largest increase in traveler interest, compared with other popular destinations.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Vacation rental owners in New Orleans are enjoying the largest increase in traveler interest, compared with other popular destinations, despite the BP oil disaster.

In the second quarter 2010, New Orleans' vacation rental owners saw a whopping 160 percent increase in traveler interest over the same period last year, according to the recently released "HomeAway Vacation Rental Marketplace Report" by HomeAway.com.

The report also said New Orleans, still shaking off the ravages of Hurricane Katrina, has ranked in the top three markets with the largest year-over-year percent increase in traveler interest for the past four quarters.

Survey results are based on 813 responses from travelers collected between September 14 and September 20, 2010 and 264 responses from vacation rental owners received between Aug. 17 and Sept. 1, 2010.

Corporate business up

The sixth quarterly report also saw more vacation rental interest from business travelers.

Ten percent of travelers say they booked a vacation rental for a business trip and 42 percent say they would consider a vacation rental while traveling for business.

Why? Business travelers say they appreciate access to a kitchen and laundry room (69 percent), they get more bang for their buck (58 percent), it feels more like home (49 percent) and there's more space (44 percent) for coworkers, family, entertaining and privacy.

"Those traveling on business can avoid pricey hotel restaurants and mini-bars by dining in their own home away from home, and they have more space to work or relax – something that's not easily done in a cramped hotel room," said Brian Sharples, chief executive officer of HomeAway.

Other findings

The HomeAway Vacation Rental Marketplace Report also found:

• One in five (20 percent) travelers say they have dreamed of owning a vacation home.

"While many people dream of buying a beach home or mountain cabin one day, most don't realize that it's more affordable than they think," says Tom Kelly, real estate expert and author of "How a Second Home Can Be Your Best Investment" (McGraw Hill, $16.95).

"Second home owners can generate rental income that can help offset the mortgage and other home costs," Kelly added.

• More than one-in-three vacation rental owners have generated more revenue this year compared with the same period last year, and approximately 40 percent of owners reported generating about the same amount of income from their properties as they did last year.

• Sunset Beach, N.C., has ranked as the market with the largest increase in new vacation rental listings in all of the past three HomeAway Vacation Rental Marketplace Reports.

• Fourteen percent of second home owners purchased their vacation home before buying their primary residence.

• Sixty-one percent of those surveyed say they have or would rent their vacation homes out for a sporting event or festival – be it the Super Bowl or a local wine festival.

• In the most recent report for the second quarter of 2010, after New Orleans' 160 percent growth in traveler interest, the following destinations had the largest year-over-year percent increase in traveler interest:

• West Hollywood, Calif. (up 151 percent)
• Santa Monica, Calif. (up 139 percent)
• Chicago (up 131 percent)
• Hot Springs, Ark. (up 129 percent)
• Lancaster, Pa. (up 122 percent)
• Snowshoe Mountain, W. Va. (up 112 percent)
• Phoenicia, N.Y. (up 109 percent)
• New York City (up 104 percent)
• Beverly Hills, Calif. (up 95 percent

To get the full report on HomeAway.com, click here


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Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

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NPFC also accepts oil spill claims, but for lump sum payments

Drive hard bargain on insurance

Vacation rental owners facing delays or denials in response to claims for lost income due to the Gulf oil disaster, have another, sort of "court of appeals" -- short of legal action -- to keep their claim alive.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Vacation rental owners facing delays or denials in response to claims for lost income due to the Gulf oil disaster, have another, sort of "court of appeals" -- short of legal action -- to keep their claim alive.

If BP or the new Gulf Coast Claims Facility (GCCF) has denied your claim or, after 90 days, has not settled your claim, you can present it to the National Pollution Fund Center (NPFC) -- also at 1-800-280-7118 -- for additional review.

However, instead of monthly payments received by many vacation rental owners filing claims with BP or the GCCF, a claim filed with the NPFC is a "sum certain" claim, a single, specific dollar amount for all losses over an extended period of losses.

Claims process to date

After the April 20, 2010 explosion and fire that ruptured an oil well, killed 11 workers, sank the BP-operated Deepwater Horizon drilling rig and became the nation's greatest environmental disaster ever, the federal government opened RestoreTheGulf.com (formerly DeepwaterHorizonResponse), in part, to provide a claims center to compensate victims and families for loss of life, personal injury, economic losses and property damage.

Soon after, the Obama Administration appointed Washington, D.C. attorney Kenneth Feinberg under a trust agreement to administer disbursements from the $20 billion BP Deepwater Horizon Disaster Victim Compensation Fund's GCCF (also available at 1-800-916-4893).

Before Feinberg opened the claims facility, BP handled claims through ESIS, a claims management and processing firm following claims provisions set forth by the Oil Pollution Act (OPA), an outgrowth of the Exxon Valdez oil spill.


The NPFC claims process

An outgrowth of the OPA, the NPFC can also tap trust funds to compensate victims who qualify for the service.


In addition to meeting the 90-day claim delay or claim denial requirements, victims must provide much of the same proof provided to BP's and or GCCF's claims adjusters, including:

• Documentation that the claim was first presented to the responsible party -- in this case, BP.


• Proof that any loss was caused by an oil spill that falls under OPA regulation. The Gulf oil spill does fall under OPA regulation.


• Documentation that shows how your income was reduced and by how much, due to the spill.


• Documentation of profits and earnings over similar time periods.

NPFC says supporting documentation includes: tax returns; income statements; balance sheets and cash flow statements, all for the year of the loss and the previous three years.

Other documentation includes receipts or other proof of revenue combined with proof of expenses; reports from federal and local responders; information on U.S. Coast Guard or EPA notification; newspaper reports describing the spill; any other documentation supporting your claim.

You have three years from the date of the damage to file an NPFC claim.

See the National Pollution Funds Center for more information.


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Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

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GCCF claims process deteriorates since takeover from BP

Oil-stained shoes for a cause

Vaction rental owners, asked about their experiences trying to collect on claims for lost income are fuming with frustration after Kenneth Feinberg publicly reneged on promises to streamline the Gulf oil claims process and dole out checks faster than BP.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Forget the promise from the Gulf Coast Claims Facility (GCCF) head who said you'd have your claim paid within 48 hours.

Don't expect the new claims facility to maintain documentation from a claim you previously filed with the former claims facility run by BP.

And that larger, six-months-of-lost-income payment promised in a single check?

Good luck.

Vaction rental owners, asked about their experiences trying to collect on claims for lost income are howling with frustration after Kenneth Feinberg publicly reneged on promises to streamline the Gulf oil claims process and dole out checks faster than BP.

As of Sept. 9, the vast majority of GCCF claims filed for lost earnings or profits went unpaid, according to GCCF's own statistics.

Lost income claims comprise the bulk of all claims filed.

"It's taking longer than I had hoped," Feinberg told the New Orleans Times-Picayune.

"There are many, many claims where we have violated our own rule. Those critics who say Ken Feinberg raised our expectations and then is not living up to those expectations, they're absolutely right, and I owe them an apology," he said.

Before taking over Feinberg promised to have some claims processed in a day or two and to grant up to six months of lost income in one payment.

However, Feinberg's spokeswoman Amy Weiss told investigative newsroom ProPublica, "The announced 48-hour claim determination rule for individual claims, and the seven-day claim determination rule for business claims will be extended as necessary and appropriate."

Weiss said they've been snowed under by the volume and complexity of the required supporting documents that require "careful scrutiny and attention to assure that each claimant will be afforded the benefit of the most generous payment."

The chaotic claims system, with a confusing cycle of frequent change, has been in disarray since it was launched shortly after the April 20, 2010 explosion and fire that ruptured an oil well, killed 11 workers, sank the BP-operated Deepwater Horizon drilling rig and became the nation's greatest environmental disaster ever.

Before Feinberg opened GCCF on Aug. 23, BP handled claims through ESIS, a claims management and processing firm that also often bungled the job.

Two weeks into GCCF's turn, critics reluctantly say the BP system was a better deal.

"I never thought I'd say this, but part of me would like BP back and that's kind of a frustrating place to be," said George Sheldon a member of Florida's Oil Spill Economic Recovery Task Force.

Only about one in four, 75 percent, of claims filed for lost income or profits have been paid -- 46,543 filed, compared with 11,483 paid, as of Sept. 9.

Claims for lost income comprise 75 percent of all claims, which also include removal and clean up costs, real or personal property damage, loss of subsistence use of natural resources and physical injury or death.

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Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

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Oil spill sinks home prices, sales

Oil Spill Distress Syndrome hits three in 10

Only four months after the onset of the Gulf oil disaster, the event is taking a toll on the housing market, as some coastal areas face home values slipping by as much as 15 percent, while others see sales sliding by more than 30 percent.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - As predicted, and only four months after the onset of the Gulf oil disaster, the event is taking a toll on the housing market, as some coastal areas face home values slipping by as much as 15 percent, while others see sales sliding by more than 30 percent.

One in four real estate professionals in Gulf Coast region reported the oil spill's negative effects on real estate markets even in areas with no physical damage, far inland from the coast, according to a survey by Clear Capital, a Truckee, CA-based real estate data firm.

While much of housing downturn is attributed to the oil disaster and related stigma, high unemployment and the expired tax credit are also exacerbating the problem.

"Many of these local markets in the Gulf have already experienced significant price declines over the last few years as well as a recent drop off in sales volume after the tax credit expiration. Additional downward pressure in the form of stigma and loss of employment will only serve to further dampen home price recovery," said Dr. Alex Villacorta, a statistician at Clear Capital.

VIllacorta added, "While social stigma appears to be the largest factor influencing the slowdown in home buying activity, it is clear the effects of the spill are being felt well inland from the coast."

Earlier studies reported some real estate properties could lose as much as 30 percent in value due to the oil disaster and it's not certain how or if the new Gulf Coast Claims Facility will honor claims based on lost property value.

The Clear Capital report found:

• More than 50 percent of those reporting a negative impact also reported a decrease in housing values by 5-15 percent.

• The number of sales has dropped dramatically year-over-year in many markets, even those that have not experienced a decrease in price or physical oil damage.

• Much of the negative impact reported was social stigma, misconceptions and ill-conceived perceptions due to a high degree of uncertainty.

Other highlights of the Clear Capital report

The report also said Real estate agents from southern coastal area of Alabama and the Florida Panhandle reported the greatest concentration of physically affected areas and estimated at least a 5-15 percent decrease in property values.

In Mobile, AL, for example, the home sales fell 25 percent in June from one year ago.

In Panama City, FL, prior to the oil spill, April sales were up nearly 11 percent, but agents reported to Clear Capital sales tanked by 32.5 percent in June this year, compared to last June.

Likewise, St. Petersburg, FL, far from any effects of the oil spill, enjoyed home sales increasing by as much as 18 percent in the spring, but by the end of June, sales were down by nearly 9 percent compared to last year.

Still recovering from Hurricane Katrina, New Orleans saw a nearly 13 percent drop in home sales in May and a dramatic 37.9 percent tumble in June.

More than 75 percent of real estate agents polled said there was no impact from the oil spill on their market, but 41.4 percent of agents in unaffected areas were unsure about the future and another 15.3 percent nevertheless anticipate a decline in housing prices.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

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Agencies warn of oil spill scams

Go offbeat! Click my head!

Federal and state agencies are warning Gulf area residents not to fall for bogus charities, fraudulent employment offers or deceitful financial assistance.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Scam artists follow the headlines, and with one as big as the Gulf oil disaster, you can bet they are making the rounds.

Federal and state agencies are warning Gulf area residents not to fall for bogus charities, fraudulent employment offers or deceitful financial assistance.

Scammers use e-mail, website, door-to-door operations, flyers, mailings and telephone calls to make contact and solicit money.

Some may claim they’re raising money for environmental causes or offer fraudulent services – including remediation services – related to the oil spill. Others may claim they can expedite loss claims for a fee.

Still others may knock on your door and talk about placing booms or checking for oil on your property.

"Unfortunately, while the public's attention is focused on an event like this and citizens pull together to do what they can to help, it is almost inevitable that con artists will emerge to exploit the situation in an effort to enrich themselves," said Florida Agriculture and Consumer Services Commissioner Charles H. Bronson.

Bronson says it's important to avoid providing personal and financial information to those making unsolicited offers for assistance or promises to help.

• Avoid scam artists posing as authorized claims adjusters asking for fees to expedite services. Likewise, steer clear of those who pretend to be government officials demanding a processing fee for government services.

The government does not require processing fees. There is no charge to process claims. Always verify you are dealing with authorized representatives and don't sign waivers of liability without legal and financial counsel.

The Gulf Coast Claims Facility (GCCF), administered by Kenneth R. Feinberg, has been established, to take over from BP and assist claimants in filing claims for costs and damages incurred as a result of the oil spill resulting from the Deepwater Horizon Incident of April 20, 2010.

• Don't be taken by high-pressure people who misrepresent an affiliation with an environmental or other organization when they ask for charity donations via e-mail or social networking sites.

Reputable charities don't pressure. Check out charities at the Better Business Bureau. Contribute to charities you know and have vetted as bona fide. Rather than clicking on a link to a purported website, verify the legitimacy of a nonprofit organization by using search engines and other online resources to confirm the group's existence, history, mission and nonprofit status. Avoid cash donations. Pay be debit or credit card or write a check so you have a record of the donation.

• Beware of unsolicited employment offers, especially those that require you to pay a fee before you begin work and request personal financial information such as a social security number, bank account or credit cards. Likewise, don't do business with unlicensed contractors nor those who require upfront payment for services.

The U.S. Department of Labor's CareerOneStop's Deepwater Horizon Response site provides quick access to a range of employment and related resources for individuals impacted by the disaster in the Gulf. There are links to CareerOneStop services in Alabama, Florida, Louisiana, Mississippi and Texas.

For more information see:

• FTC Warns of Oil Spill Scams

• FTC: Avoid Charity Fraud

• Florida Attorney General: Beware of Scams

• New York State Consumer Protection Board Warns of Oil Spill Charity Scams


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Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

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Making the case for lost-property-value claims in the Gulf oil disaster zone

With real estate properties along the Gulf Coast oil disaster zone expected to suffer value losses ranging from 10 to 30 percent or more, some efforts are afoot to help property owners mitigate those losses. Property owners need all the help they can get.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - With real estate properties along the Gulf Coast oil disaster zone expected to suffer value losses ranging from 10 to 30 percent or more, some efforts are afoot to help property owners mitigate those losses.

The assistance is sketchy, uncertain and without standardized procedures, however, area property owners face oil disaster-related property value hits on top of losses due to general economic and travel industry malaise and need all the help they can get.

Seattle-based Greenfield Advisors, LLC, a company specializing in complex real estate valuation services, estimates that more than 1 million parcels could suffer value losses in 44 counties in the Gulf Coast states of Alabama, Florida, Louisiana, Mississippi, and Texas.

"These loss-of-property-value claims are going to be tough. Kenneth Feinberg (the attorney appointed to administer the $20 billion Gulf Coast Claims Facility and take over from BP the claims processing and paying process) is not a big fan of the claims, especially not a big fan of paying now, because no one knows the extent of the spill, with new and conflicting reports coming out every day, no one knows the final word on property values," said Peter Taaffe, an attorney, with the Houston, TX-based Buzbee Law Firm. The firm's clients include a host of Deepwater Horizon oil platform workers, Florida property owners, seafood harvesters and fishing industry workers.

Potential Oil Disaster-Triggered Property Value Losses by County

County	Area	No. of properties	Avg. distance from Gulf coastline (in yards)	Avg. loss over 5 years	Potential loss over 5 years
Escambia	Pensacola-Ferry Pass-Brent, Fla.	39,368	350	$39,882	$1.6 billion
Harrison	Gulfport-Biloxi, Miss.	21,221	568	$56,469	$1.2 billion
Mobile	Mobile, Ala.	10,520	436	$44,662	$470 million
Source: CoreLogic

How can individual property owners make a case for a lost property value claim?

• Government action. Earlier this summer Florida's Gov. Charlie Crist issued an executive order allowing appraisers to reassess property values in counties affected by the oil spill.

Owners in Florida's Panhandle, for example, contend their property values have already diminished because of the spill, and studies appear to back up their contentions, but they still have to pay taxes on the higher assessed amount.

The Sunshine State's do-over assessments won't mean reduced taxes, but property owners could use the new numbers to seek, say, the difference paid in property taxes for the higher, pre-spill value.

"A vacation rental property owner should fight the appraisal district to keep the values down, to reflect the reality that they are down. There's a two fold benefit -- lower property taxes and it will be a big piece of evidence if they later file a claim with BP. If the appraisal district has not lowered the appraised property value, then it will not help their claim against BP," said Taaffe

Taaffe said firms are available for hire who fight appraisal districts on valuation for a percentage of the reduced rate.

Property owners must also be aware of scams that seek to take advantage of vulnerable, uninformed property owners seeking due and just redress.

• Legal action. Jacksonville, FL-based St. Joe Co., real estate development company which owns 577,000 acres in Florida, 70 percent of which is within 15 miles of the coast recently sued Halliburton Energy Services, the cementing contractor for the well that blew out.

Longwood, FL-based New Bastion Development has projects in Panama City Beach and Marianna that have been put on hold because of the disaster. It is also planning legal action.

Taaffe, also a contributing writer with the HomeAway Gulf Coast Response Center said certain individual and smaller property owners who lost money on deals since the oil disaster may be most likely to have a lost-value claim paid quickly.

"It would be a seller who had a buyer, pre-spill, the deal fell apart because of the spill, then the seller had to sell to another party and the seller took a big hit. The seller would have a decent shot of being reimbursed for the difference (net) between first sale and second sale. Feinberg would look carefully to make sure the second sale was an 'arms' length' deal," not one made to a friend or close associate, Taaffe said.

"It boils down to what is speculation right now vs. actual documented loss," Taaffe said.

• Claims process. Greenfield recently opened a new Web site GulfSpillValuations.com, which promises automated documentation to help property owners prove their case.

The company begins with tax assessor records and then calculates the effects of historical market trends since the date of assessment as well as any other extenuating circumstances to arrive at a "pre-incident" value for a property.

The company then determines a decrease in value caused by Deepwater Horizon oil spill, based on similar techniques applied to property values following the Exxon Valdez oil spill and Hurricane Katrina.

The report, obtained instantly through an automated online process, can then be filed as supporting material with claim documents to justify a demand for compensation due to property value loss caused by the oil spill.

"This is the same comprehensive analytical work we do for million- and even billion-dollar litigation projects," said John Kilpatrick, Greenfield's CEO.

"There are normally very few individual property owners whose situations justify hiring us, but the economies of scale in this circumstance make it possible to offer our expertise to anyone harmed by the BP oil spill," he added.

The online automated report costs $500 and that's hundreds of dollars more than a traditional appraisal, but a typical appraisal probably won't cut it.

"You wouldn't hire us to do what an appraiser does. When you hire an appraiser they have no training in how to deal with value impairments due to environmental contamination or similar events, but we do" says Greenfield spokesman John Casker.

Casker also said the GulfSpillValuations.com report doesn't consider lost property value due to the effects of lost revenues, something a property owner should also consider documenting for the purposes of filing a complete lost value claim.

"The business valuation of a property leads directly to resale value. If there's (lost revenues) you can't sell the property for what you paid for it. You can't automate valuation due to lost business," Casker said.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

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Vacation rental owners' hard lesson from the Gulf oil front

HomeAway Gulf Coast Response Center

Gulf area vacation rental owners, suffering lost income due to the disaster, are discovering the hard way why sound record-keeping is a must.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Improved oil well safety protocols and faster disaster response aren't the only lessons to be learned from the Gulf of Mexico oil spill.

Some vacation property owners in the Gulf area, suffering lost income due to the disaster, have discovered the hard way why sound record-keeping is a must.

(Get the low-down on the latest claims information from HomeAway Inc.'s BP Claims Info Center)

BP recently adjusted its lost income claims process to help newer vacation property owners in the Gulf oil disaster area prove past rental income, without the benefit of past tax or rental records.

However, for others who've held vacation rental property for years, BP requires tax records and other proof of past rental income. These are records vacation property owners should always maintain -- in this case, so BP can compensate them for lost income.

"Should" is the operative word.

"It's difficult to ask for compensation for lost vacation rental income when your tax return does not reflect that you ever earned any income from a vacation rental home," said Jan Leasure, the managing broker at Monterey Bay Property Management in California's Monterey Bay Area, another vacation hot spot where vacation rental owners likewise would be devastated by an oil spill.

(See the forum discussion "Have you started the BP Claims Process?" to learn what documents vacation property owners are being required to present to their claims adjuster.)

But it's not just about a disaster.

Steve Gorman, president of the Monterey County (CA) Association of Realtors says honesty is always the best policy. He also works in the Monterey Bay Area.

"This should go without saying, but failure to report all of your rental income can be income tax fraud. Ask yourself, 'Is it really worth the risk doing it the wrong way?' The answer should be, 'Of course not. What the heck was I thinking?' " said Gorman broker/owner of Gorman Real Estate in Pacific Grove, CA.

More than receipts

Gorman says just filing taxes and keeping receipts isn't enough.

"You must also show the relationship between the expenses of your rental business and the income, but don't try to pile on a bunch of personal expenses, calling them rental expenses. The government is wise to that approach, so be honest about what you report, Gorman said.

Some vacation property owners say BP has also asked them for "P&L" statements.

That's a "Profit and Loss" statement which summarizes revenues, costs and expenses incurred. The statement reveals your business's ability to generate profit by increasing revenue and reducing costs. The bottom line, literally, is net income, or profit.

The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement."

"Keeping good records of your rental income and expenses is vital if you're in the rental business. Uncle Sam isn't going to take your word for it. You need to prove your expenses to the taxing authorities or they will be disallowed," said Gorman.

Tsk. Tsk.

Leasure said the economy can also force tax authorities' hands and make you wish you had the proper records.

California, saddled with tens of billions of dollars of indebtedness, recently stepped up revenue collection activities by collecting taxes from property management companies that manage residential rental properties owned by out-of-staters.

"The state's Franchise Tax Board directed property manages to withhold seven percent of the rental income from out-of-state vacation rental owners and send it directly to the state. The FTB gave exemptions to property owners who could show that they had filed California tax returns for the last two years," said Leasure.

Leasure says it's easy for do-it-yourself-management vacation rental owners to circumvent the normal income tax collecting process.

"There is little way for a tax agency to prove anything other than what the property owner's records show. However, unexpected events can cause that owner to regret that he did not claim the income," she added.

Leasure also said lenders reject loan applications from property owners who want the lender to consider rental income that isn't reported on tax records.

"My advice to property owners would be to report the income, pay the taxes, and you will probably find that, in the future, you will be happy that you did it that way," Leasure said.


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© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

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'Day-at-the-beach' sell tougher for vacation rental owners in Gulf Coast

HomeAway Gulf Coast Response Center

The Gulf Coast's economically pivotal vacation rental playground faces a value crunch that could cost individual properties as much as $80,000 in lost value, according to the most exhaustive study to date of the Gulf oil disaster's impact on residential real estate values, reported by the new HomeAway Gulf Coast Response Center.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - The Gulf Coast's economically pivotal vacation rental playground faces a value crunch that could cost individual properties as much as $80,000 in lost value, according to the most exhaustive study to date of the Gulf oil disaster's impact on residential real estate values, reported by the HomeAway Gulf Coast Response Center

Core Logic, in a report that denotes value as real property value combined with the value associated with the amenities of beach front access, says the cost of the oil disaster to home values along the Gulf's coastal counties is expected to range from $648 million in one year, to as much as $3 billion over the span of a half decade.

The study adds beach front proximity to the value equation because buyers who acquire coastal properties pay premiums for the amenities that come with a property that provides easy access to the proverbial "day-at-the-beach."

Among the study's 600,000 properties identified as being within 1,000 meters (about a half mile) of the Gulf coast line, are an estimated 150,000 vacation rental properties representing a uniquely pivotal sector of the area's economy, according to HomeAway.com.

HomeAway.com, the nation's largest vacation rental portal of a half million privately owned listings for travelers and property owners alike recently created the HomeAway Gulf Coast Response Center to address the concerns of vacation rental owners often overlooked by mainstream media.

Largely under reported is the fact that the Gulf Coast includes a large swath of Florida panhandle vacation rental properties -- not resorts, hotels and motels -- that provide the bulk of the area's travel accommodations with direct, easy access to beaches.

Florida, among the most over speculated housing boom markets, has had one of the nation's worst housing busts and, among all states during the first half of 2010, had the third highest foreclosure rate, with some panhandle counties suffering the worst foreclosure rates in the state, according to RealtyTrac.com.

"While it is by no means a certainty that the major coastal communities along both coasts of Florida will be impacted at all by the oil spill, the lost amenity value in these markets could be particularly high," said Mark Fleming, chief economist with Core Logic.

The report examined the impact of the oil disaster on the more than 600,000 properties identified as being within 1,000 meters of the coastline in 15 counties, representing major beach travel communities stretching from the Gulf coast of Alabama to the Atlantic peninsula coast of Florida.

The report found:

• The highest risk coastal communities along the Mississippi, Alabama, and Florida panhandle include more than 71,000 residential homes at risk of losing an estimated average loss in beach amenities valued between $40,000 and $56,000. The total estimated loss of beach amenities is valued at $3 billion.

• Of the immediately impacted communities, the largest overall loss in amenity value would be in Pensacola ($1.6 billion), followed by Gulfport ($1.2 billion).

• In terms of average loss in amenity value per home, Gulfport ($56,000) is the largest, followed by Mobile ($45,000) and Pensacola ($40,000).

• If the Gulf currents take the oil to the communities along the Florida gulf coast the loss in amenity value will rise substantially. The four coastal communities along the coast (Panama City, Tampa Bay, Cape Coral, Naples) could experience a total loss in amenity value of $11 billion impacting 238,000 homes.

• Even though the chances are low, Core Logic estimated the loss in amenity value for communities along the Atlantic coast of Florida as well. This includes Miami, Key West, Palm Bay, Daytona Beach, and Jacksonville. More than 295,000 properties within 1,000 meters of the beach could be affected with a total loss in amenity value of $13.5 billion.

"Our hope is that the oil spill is contained and the loss in amenity value is further moderated by a speedy cleanup and a return of beach amenities to the affected communities' homeowners," said Fleming.


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© 2010 DeadlineNews.Com

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Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

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Gulf Coast homeowners get mortgage relief

Father's Day in the 'man cave'

With livelihoods and home values threatened by the Gulf oil disaster, it's a good thing lenders and others are coming forth to offer special relief for homeowners in the area.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - With livelihoods and home values threatened by the Gulf oil disaster, its a good thing lenders and others are coming forth to offer special relief for homeowners.

Fannie Mae this week announced that servicers may immediately suspend or reduce mortgage payments for borrowers impacted by the nation's greatest environmental disaster.

Under the company's "Special Relief Measures" policy, servicers can suspend or reduce a borrower's payments for up to 90 days. During that time, servicers will determine the nature and extent of the impact the disaster is having on properties and homeowner's financial condition.

Once servicers conclude the assessment they have additional leeway to evaluate any loss mitigation alternative, including an additional three months of forbearance, a loan modification or other customized solution.

Also see:
• "More bad news for Gulf area home values"
• "HomeAway helps Gulf area vacation property owners brace for oil spill fallout"

"We want to give homeowners every opportunity to weather this unprecedented disaster, including relief from their mortgage payment if that will help them get back on their feet and stay in their homes," said Michael J. Williams, President and CEO of Fannie Mae.

"Our policy is in place to support those who are experiencing a disaster-related hardship through no fault of their own and are acting in good faith to meet their mortgage obligation," Williams added.

Borrowers seeking relief under Fannie Mae's measures should contact their mortgage servicer.

Freddie Mac offered similar relief.

In addition to rank and file homeowners, there are an estimated 150,000 private vacation rental property owners in the Florida white-beach panhandle area alone who could experience lost income, even if oil doesn't come ashore and that could affect their ability to pay the mortgage, according to HomeAway.com an online portal for vacation rental owners.

The draw of the beaches and vacation home facilities are a major asset for the region's tourism economy, especially in Florida's Northwest region where the beaches and travel accommodations are often assets of individual vacation property owners, rather than hotels and resorts.

Citigroup CEO also this week announced a foreclosure suspension program for CitiMortgage home loans in coastal areas hard-hit by the oil spill in the Gulf of Mexico.

During a three-month suspension, effective Thursday through September 17, qualified borrowers with first mortgage loans owned by CitiMortgage will not be subject to foreclosure sales or foreclosure notifications, the bank said.

CitiMortgage will also waylay evictions on its real estate owned properties during the period.

The program aims to allow distressed homeowners to remain in their homes as Gulf communities respond to the oil spill and its economic repercussions.

"We hope that with this suspension we can help ease some of the financial stress for our customers in the affected Gulf region," said Sanjiv Das, President and Chief Executive Officer of CitiMortgage.

Meanwhile, the Louisiana Realtors Association (LRA) also recently announced it is prepared to use its Louisiana REALTORS Association Relief Fund (LRARF) to assist members and other Louisiana residents affected by the growing oil crisis.

LRA established LRARF in 2005 after Hurricane Katrina to assist its members and other Louisiana residents affected by major disasters. The program's guidelines online explain qualifying requirements.

Other help for homeowners may be available through the federal government's DisasterAssistance.gov program.

Anyone can keep apprised online of the official Deepwater Horizon Response unified command, including related disaster relief efforts.

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© 2010 DeadlineNews.Com

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You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

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More bad news for Gulf area home values

Zero interest credit card meltdown

Homes along the immediate path of the Gulf Coast oil leak are forecast to decline at least 30 percent in value as a result of the environmental catastrophe, according to Housing Predictor.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Much of the nation is poised to recover from the worst housing downturn since the Great Depression, but the Gulf of Mexico area's housing markets could be in for yet another home value depreciation disaster.

The April 20 explosion and fire that ruptured an oil well, killed 11 workers, sank the BP-operated Deepwater Horizon drilling rig and became the nation's greatest environmental disaster, could also take down home prices in the Gulf by as much as 30 percent -- another 30 percent.

• Also see: HomeAway.com issues marching orders for Gulf area vacation property owners

Since 2005 housing markets in the Gulf have been slammed by horrific hurricanes and a perfect economic storm, all of which have sucked away at home values like a Hoover.

Moody’s Economy.com says area home values have declined 34 percent since the peak of the residential real estate market in 2006.

And now, commercial real estate information company CoStar says the economic fallout could clip another 10 percent off home values for the next several years costing $4.3 billion in lost property values overall, along a 600-mile coastal stretch from the Louisiana Bayous to Clearwater, FL on the west side of the state's peninsula.

Real estate broker, analyst and information transparency advocate, fired in March from his job as president of New Orleans' largest real estate firm, outspoken Arthur Sterbcow told Bloomberg last week, home values in the area will fall 5 percent to 15 percent in the next 12 months.

With the hurricane season looming and growing reports about cash buyers and others in the area backing out on property purchase deals, another, more recent forecast is even gloomier.

"Homes along the immediate path of the Gulf Coast oil leak are forecast to decline at least 30 percent in value as a result of the environmental catastrophe," according to housing market forecaster Housing Predictor.

The forecast covers only the immediate waterfront properties in Louisiana and Mississippi where homes and condos have suffered home value depreciation as great as 65 percent since the peak of the market, according to Housing Predictor.

Florida, over speculated during the housing boom, has had one of the nation's worst housing busts. One in every 174 Florida properties received a foreclosure notice in May, the nation’s third highest foreclosure rate -- higher even then California, according to RealtyTrac

"Real estate values would also be seriously impacted in Florida and Alabama if the oil reaches the beaches and has a strong likelihood of crippling local economies, sending more homes and other properties into foreclosure," the Housing Predictor reported.

That could include beachfront properties in Florida's Northwest tourism region where the beaches and travel accommodations are often assets of individual vacation rental property owners, rather than hotels and resorts.

The draw of the beaches and vacation home facilities are a major asset for the region's tourism economy.

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© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

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