The nation's economic disaster has lasted long enough that a portion of those who lost their homes are asking "how long must I wait before buying again?".
As supply diminished by the demand placed on the rental market the cost to rent has increased significantly. The high prices have left many who are now economically stable asking how long do we have to rent?
There is no easy answer to the question. It will depend on the individual circumstances of what caused the default and the end result. Was your resolution short sale, foreclosure or bankruptcy?
If a short sale was caused by job lost or illness the waiting period to purchase a home again is about 2 years. However, if your past includes a foreclosure the wait is longer. Especially if you do not have an illness or job loss as a reason for the default.
If you find yourself currently going through the process do everything in your power to resolve the situation with a short sale instead of a foreclosure.
6/19/2011
Retirement And The Economy
Whether you are approaching retirement age or find yourself anywhere else within the spectrum of your adult life the economic realities of today are a topic to be conern about.
The economic conditions during the past four years have left the majority of Americans wondering how to survive once we reach retirement. The first step in being able to retire is planning. It is important to include as an everyday item budgeting for retirement. It is equally important to enlist the help of a professional. Everyone's situation and goals are different so you need a plan tailored to maximize your income. The worse the overall economy is, the more planning will be required. Reality is showing us that we may not have social security and medicare as a parachute in our golden years to fall back on. It is important to take personal responsability and not count on the government.
According to most investment firms you will need 75% of your pre-retirement income to live comfortably when you retire. While setting your goals the following are items to be consider:
1. Life expectancy
The state of your health and arranging sufficient insurance will play a key role with this item.
2. Future income needs
If your dwelling is paid off a large portion of expenses will be reduced.
3. Retirement date
How long you plan on working will decide the acceleration of your plan.
4. Inflation rate
Our economy has cycles. How steep we forsee those cycle to be will account for adjustments needed in our planning.
5. Investment rate
This item is greatly influence by the economy. Periodical adjustments will be needed.
6. Withdrawal rate
Calculating our future expenses and setting a realistic vision of our retirement lifestyle will dictate the degree of this item.
It does not matter whether you are beginning or close to retire. Start your planning as soon as possible and you will have a true golden age.
The economic conditions during the past four years have left the majority of Americans wondering how to survive once we reach retirement. The first step in being able to retire is planning. It is important to include as an everyday item budgeting for retirement. It is equally important to enlist the help of a professional. Everyone's situation and goals are different so you need a plan tailored to maximize your income. The worse the overall economy is, the more planning will be required. Reality is showing us that we may not have social security and medicare as a parachute in our golden years to fall back on. It is important to take personal responsability and not count on the government.
According to most investment firms you will need 75% of your pre-retirement income to live comfortably when you retire. While setting your goals the following are items to be consider:
1. Life expectancy
The state of your health and arranging sufficient insurance will play a key role with this item.
2. Future income needs
If your dwelling is paid off a large portion of expenses will be reduced.
3. Retirement date
How long you plan on working will decide the acceleration of your plan.
4. Inflation rate
Our economy has cycles. How steep we forsee those cycle to be will account for adjustments needed in our planning.
5. Investment rate
This item is greatly influence by the economy. Periodical adjustments will be needed.
6. Withdrawal rate
Calculating our future expenses and setting a realistic vision of our retirement lifestyle will dictate the degree of this item.
It does not matter whether you are beginning or close to retire. Start your planning as soon as possible and you will have a true golden age.
6/06/2011
The Housing Market and Property Taxes
The metropolitan areas nationwide with the highest rates of mortgage foreclosures continues to be heavily found in California, Florida, Arizona and Nevada.
The Appraiser's office has been busy tracking sales value while developing this year's property tax assessments.
Prices for the tricounty areas of Palm Beach, Broward and Miami-Dade are down 51 percent from their peak in December 2006 but only an average of 6 percent from the previous year, according to the Standard & Poor"s/Case-Shiller price index just recently release. In both Broward and Miami-Dade Counties, most municipalities are showing decreases in property values. However, the majority are posting single digit instead of the staggering double digit losses. This seems to be signaling a slowdown of the economic down turn.
Whether the economic down turn continues will depend in large part on the outcome of the job growth/job loss and the foreclosure crisis that still exists and is looming in the horizon. More than 91,000 foreclosure cases and growing are currently pending in South Florida courts and 14.4 percent of mortgages are delinquent. The highest impediment to homeowners resolving their financial crisis is the fact that thousands are upside down in their home values making it extremely difficult to resolve their problem. This situation projects that many properties are set to enter the foreclosure process. Until the market has absorved these foreclosures, property values will not stabilize.
This brings us to our future housing demand. The rental market is strong and will continue in that trajectory as people displaced from their homes by the economic crisis find the rental option to be the only one available to them. The increases in fuel prices is also adding to the change in housing demand. More people are looking for smaller housing in urban communities as they choose to rent and live in closer proximity to their jobs.
Our economy has a long way to go before stabilizing. So keep budgeting and capitalize with the good buys that can still be found in the market place. Those with cash available find that great investments are waiting to be made whether on homes or income properties. Let me know how I may assist you with your investments.
The Appraiser's office has been busy tracking sales value while developing this year's property tax assessments.
Prices for the tricounty areas of Palm Beach, Broward and Miami-Dade are down 51 percent from their peak in December 2006 but only an average of 6 percent from the previous year, according to the Standard & Poor"s/Case-Shiller price index just recently release. In both Broward and Miami-Dade Counties, most municipalities are showing decreases in property values. However, the majority are posting single digit instead of the staggering double digit losses. This seems to be signaling a slowdown of the economic down turn.
Whether the economic down turn continues will depend in large part on the outcome of the job growth/job loss and the foreclosure crisis that still exists and is looming in the horizon. More than 91,000 foreclosure cases and growing are currently pending in South Florida courts and 14.4 percent of mortgages are delinquent. The highest impediment to homeowners resolving their financial crisis is the fact that thousands are upside down in their home values making it extremely difficult to resolve their problem. This situation projects that many properties are set to enter the foreclosure process. Until the market has absorved these foreclosures, property values will not stabilize.
This brings us to our future housing demand. The rental market is strong and will continue in that trajectory as people displaced from their homes by the economic crisis find the rental option to be the only one available to them. The increases in fuel prices is also adding to the change in housing demand. More people are looking for smaller housing in urban communities as they choose to rent and live in closer proximity to their jobs.
Our economy has a long way to go before stabilizing. So keep budgeting and capitalize with the good buys that can still be found in the market place. Those with cash available find that great investments are waiting to be made whether on homes or income properties. Let me know how I may assist you with your investments.
11/21/2010
Controling Holidays Spending
This week the holidays will officially begin and so has spending.
The holidays have become a season of over indulgence from food to sharing materialistic items. The abundant economic prosperity our country has experienced came to a halt as Americans struggle to stay afloat. It is in time of adversity that we find the true meaning of Thanksgiving, Christmas and New Year.
How to control the holidays and make them the best ever yet:
1. Make gathering with family and friends the focal point of the holidays and give thanks for what you have "each other". Appreciate every minute you share together for this is what makes memories that will last for eternity.
2. Start a tradition of each member of your thanksgiving gathering expressing what they are thankfull for. Have them write it, turn it into a display and after the holidays make a scrapbook to share with them every year. Take pictures to incorporate into the scrapbook.
3. Instead of buying everyone a gift why not exchange names. Decide on a spending minimum and maximum. Have everyone write their name and 3 items they would enjoy receiving whose value are within the agreed amounts.
4. Buy what you can afford today.
5. Put away the plastic whenever possible.
6. Before you go to the stores have a list of names and what you are buying. Do your homework and check the sales.
Remember that material things we give do not last and are often discarded. What matters and last is the love and spiritual meaning we give each other. Those memories last forever.
Enjoy your HOLIDAYS AND GOD BLESS YOU!
The holidays have become a season of over indulgence from food to sharing materialistic items. The abundant economic prosperity our country has experienced came to a halt as Americans struggle to stay afloat. It is in time of adversity that we find the true meaning of Thanksgiving, Christmas and New Year.
How to control the holidays and make them the best ever yet:
1. Make gathering with family and friends the focal point of the holidays and give thanks for what you have "each other". Appreciate every minute you share together for this is what makes memories that will last for eternity.
2. Start a tradition of each member of your thanksgiving gathering expressing what they are thankfull for. Have them write it, turn it into a display and after the holidays make a scrapbook to share with them every year. Take pictures to incorporate into the scrapbook.
3. Instead of buying everyone a gift why not exchange names. Decide on a spending minimum and maximum. Have everyone write their name and 3 items they would enjoy receiving whose value are within the agreed amounts.
4. Buy what you can afford today.
5. Put away the plastic whenever possible.
6. Before you go to the stores have a list of names and what you are buying. Do your homework and check the sales.
Remember that material things we give do not last and are often discarded. What matters and last is the love and spiritual meaning we give each other. Those memories last forever.
Enjoy your HOLIDAYS AND GOD BLESS YOU!
11/18/2010
What Affects The Economy The Most
The economy is affected by a series of inter-related complex factors that has made the recovery very sluggish. In fact the delicate balance of these factors have created a domino effect.
Some of the these factors are:
1. Unsuccessfull governmental programs affecting business community.
2. Job Creation
3. Credit criteria
4. Housing Market still remaining critical
5. Consumer spending
Each one of these factors builds on each other and has created a downward spiral that is still out of control. Although it seems to have slow down the question is how do we revert the situation from a negative to a positive.
Some of the these factors are:
1. Unsuccessfull governmental programs affecting business community.
2. Job Creation
3. Credit criteria
4. Housing Market still remaining critical
5. Consumer spending
Each one of these factors builds on each other and has created a downward spiral that is still out of control. Although it seems to have slow down the question is how do we revert the situation from a negative to a positive.
11/16/2010
What Do You Cut In Tough Economic Times?
Financial advisors recommend cutting back on small things to save lots of money.
As the hard economic times linger a pattern of savings by cutting back expenses seemed to have developed through out the country. Some of the things Americans are cutting back on are:
1. Bringing lunch to work vs eating out
2. Stopped purchasing coffee in the morning
3. Choosing generic brand items vs name brands
4. Cooking vs eating out
5. Refillable water bottles vs buying water bottles
6. Less frequent visits to hairstylist, nail salons, and barber shops.
7. Cancel magazines and newspaper subscription
8. Cut down use of dry cleaning services
9. Driving vs Carpooling or using mass transit services
10. Renting movies vs. going to the movies
11. Cut backs or cancel cable television
12. Using cell phones only and cancelling land lines.
Are you among the ones developing a new life style?
As the hard economic times linger a pattern of savings by cutting back expenses seemed to have developed through out the country. Some of the things Americans are cutting back on are:
1. Bringing lunch to work vs eating out
2. Stopped purchasing coffee in the morning
3. Choosing generic brand items vs name brands
4. Cooking vs eating out
5. Refillable water bottles vs buying water bottles
6. Less frequent visits to hairstylist, nail salons, and barber shops.
7. Cancel magazines and newspaper subscription
8. Cut down use of dry cleaning services
9. Driving vs Carpooling or using mass transit services
10. Renting movies vs. going to the movies
11. Cut backs or cancel cable television
12. Using cell phones only and cancelling land lines.
Are you among the ones developing a new life style?
11/15/2010
What Average Buyers Are Looking For
The home market fluctuate depending on the latest fad and economic condition of the nation.The longer the economic downturn last the bigger the changes people are force to make.
Today's reality has forced people to downsize and choose practical designs when choosing their home.
1. Size: The average buyer is looking for a home with less than 2,000 square feet.
2. Functionality: Flexible spaces that can serve as home offices, guest rooms or dens are in high demand.
3. Energy Efficiency: Homes with energy efficient windows, doors, insulation, and appliances are also in high demand.
Prepare your home and call attention to the assets buyers are looking for.
Today's reality has forced people to downsize and choose practical designs when choosing their home.
1. Size: The average buyer is looking for a home with less than 2,000 square feet.
2. Functionality: Flexible spaces that can serve as home offices, guest rooms or dens are in high demand.
3. Energy Efficiency: Homes with energy efficient windows, doors, insulation, and appliances are also in high demand.
Prepare your home and call attention to the assets buyers are looking for.
11/14/2010
Holiday Staging
Principle concept of staging "less is more". The holidays are upon us so how do you incorporate the warm holiday cheers and maintain the integrity of staging.
1. Keep it elegant and simple
2. Don't clutter - pack same amount of items as you display
3. Small close space - small christmas tree
Large open space - larger christmas tree
Well lighted
Display elegant uniformly color ornaments complementing room colors.
4. Holidays colors use -
poinsettas
greenery on fireplace mantel and dinning tables
candels
pillows and throws
5. Holiday mood - use instrumental music and candle smells
6. Curb appeal - Wreath, poinsiettas, white non blinking lights
Most importantly enjoy the holidays!
1. Keep it elegant and simple
2. Don't clutter - pack same amount of items as you display
3. Small close space - small christmas tree
Large open space - larger christmas tree
Well lighted
Display elegant uniformly color ornaments complementing room colors.
4. Holidays colors use -
poinsettas
greenery on fireplace mantel and dinning tables
candels
pillows and throws
5. Holiday mood - use instrumental music and candle smells
6. Curb appeal - Wreath, poinsiettas, white non blinking lights
Most importantly enjoy the holidays!
11/12/2010
Financial Reform Controversy
A Few months ago Congress passed financial reform through the Dodd-Frank Wall Street reform law.
Included in the bill one reform required lenders to keep a 5 percent interest in the loans they sold to investors. The goal was to keep the lenders from making questionable loans and passing them to investors while selling off the loans in bulk. This common practice contributed to the housing bust.
The Mortgage Bankers Association has requested to have mortgages with adjustable rates and interest-only exempted from the 5 percent rule. They claim that without an exemption to this rule the end result would be fewer customers able to obtain financing.
Apparently we will be seeing a greater degree of financial tightening when applying for a loan.
Included in the bill one reform required lenders to keep a 5 percent interest in the loans they sold to investors. The goal was to keep the lenders from making questionable loans and passing them to investors while selling off the loans in bulk. This common practice contributed to the housing bust.
The Mortgage Bankers Association has requested to have mortgages with adjustable rates and interest-only exempted from the 5 percent rule. They claim that without an exemption to this rule the end result would be fewer customers able to obtain financing.
Apparently we will be seeing a greater degree of financial tightening when applying for a loan.
11/10/2010
Real Estate Owned (REO) Sales Slowed Down
If you are currently navigating the REO/Foreclosure market what does the nation's latest foreclosure disaster have in store for you?
The latest scandal in the foreclosure field is the question of whether banks filed foreclosure documents without confirming their content. As the banking institutions became overwhelmed with the number of foreclosures, questions have arrised with the procedures followed by banking staff. This has caused Attorney Generals in all 50 states to launch an investigation into this practices.
Bank of America, Ally, Wells Fargo and JPMorgan Chase are among the banks announcing a stopped or slowed down of final foreclosure sales in the last month as they investigate internally the procedures currently in place and resubmit documents. In an attempt to protect the fragil housing market Federal Regulators and the White House are considering giving the banks a measure of liability protection as they redo paperwork to prevent a foreclosure sale freeze.
Until the Banks and regulators have figured out the appropriate course correction you must arm yourself with patience. An alternative is to concentrate on the APPROVED shortsale market.
The latest scandal in the foreclosure field is the question of whether banks filed foreclosure documents without confirming their content. As the banking institutions became overwhelmed with the number of foreclosures, questions have arrised with the procedures followed by banking staff. This has caused Attorney Generals in all 50 states to launch an investigation into this practices.
Bank of America, Ally, Wells Fargo and JPMorgan Chase are among the banks announcing a stopped or slowed down of final foreclosure sales in the last month as they investigate internally the procedures currently in place and resubmit documents. In an attempt to protect the fragil housing market Federal Regulators and the White House are considering giving the banks a measure of liability protection as they redo paperwork to prevent a foreclosure sale freeze.
Until the Banks and regulators have figured out the appropriate course correction you must arm yourself with patience. An alternative is to concentrate on the APPROVED shortsale market.
11/09/2010
How To Decorate X-Large Rooms
Huge rooms creates large problems to decorate. X-large rooms with high ceilings, tall doors and windows makes your house look fantastic. So how do you convert these large spaces from feeling cold to warm? Your choice of texture, color and furniture placement are key factors.
Here are a few tips to consider while making your house a home:
1. Whatever colors you choose for your living-room must be complementary repeated in adjacent rooms.
2. Darker colors minimizes the size of a room.
3. Ceiling moldings visually brings down a tall space.
4. Cluster your seating arrangements.
5. Instead of one rug use separate rugs for the seating arrangements.
6. Indulge yourself with extra large furniture.
The most important tip is to enjoy planning the decor and allow yourself expression to dominate the end product. Have fun while making your house your HOME.
Here are a few tips to consider while making your house a home:
1. Whatever colors you choose for your living-room must be complementary repeated in adjacent rooms.
2. Darker colors minimizes the size of a room.
3. Ceiling moldings visually brings down a tall space.
4. Cluster your seating arrangements.
5. Instead of one rug use separate rugs for the seating arrangements.
6. Indulge yourself with extra large furniture.
The most important tip is to enjoy planning the decor and allow yourself expression to dominate the end product. Have fun while making your house your HOME.
9/26/2010
Still Time To Invest
As the market continues to receive foreclosures the amount of inventory available to choose from continues to make this a prime time to invest.
The government programs meant to help stabalize home owners in trouble and under water by modifing mortgages have left many dissapointed. The majority of the homewoners didn't qualify, others did qualify but then fell behind on their modified mortgages.
As unemployment continues to linger foreclosures continues to climb. The biggest trouble spots remains Nevada, Florida, Arizona, and California. If you are looking for a bargain in any of these areas then now is the time to purchase your dream home, an investment property or your vacation property.
Inventories of Bank owned properties are easily accessible by contacting a Realtor to search the Multiple Listing and negotiate the right deal. Another up and coming in popularity is the Auction method. Either way, the time is now for bargain hunters to find the right property.
The government programs meant to help stabalize home owners in trouble and under water by modifing mortgages have left many dissapointed. The majority of the homewoners didn't qualify, others did qualify but then fell behind on their modified mortgages.
As unemployment continues to linger foreclosures continues to climb. The biggest trouble spots remains Nevada, Florida, Arizona, and California. If you are looking for a bargain in any of these areas then now is the time to purchase your dream home, an investment property or your vacation property.
Inventories of Bank owned properties are easily accessible by contacting a Realtor to search the Multiple Listing and negotiate the right deal. Another up and coming in popularity is the Auction method. Either way, the time is now for bargain hunters to find the right property.
9/21/2010
Don't Drain The Bank By Spending
Everyone has at one time or another made an implusive purchase. The danger is when impulsive turns compulsive. Compulsive shopping can destroy finances, careers and relationships. In today's economy this behavior invites disaster.
So how do we overcome compulsive shopping?
Identify triggers
Compulsive shopping fills emotional voids of loneliness, lack of self-confidence and control. The emotional high comes the actual act of shopping.
Remove temptation
The best results comes from staying away from the mall, shopping websites, and putting away credit cards that provides the means by which to shop. You may also unsubscribe to retailer's emails.
Use money tools
By using simple household budget and shopping lists you can maintain focus on what are necessities vs unecessary shopping. Financial goals gives you a reason to save vs spending.
Find substitues for shopping
Since compulsive shopping fills an emotional need you must find a substitute activity such as exercise, volunteering, schedule time with family and friends.
So how do we overcome compulsive shopping?
Identify triggers
Compulsive shopping fills emotional voids of loneliness, lack of self-confidence and control. The emotional high comes the actual act of shopping.
Remove temptation
The best results comes from staying away from the mall, shopping websites, and putting away credit cards that provides the means by which to shop. You may also unsubscribe to retailer's emails.
Use money tools
By using simple household budget and shopping lists you can maintain focus on what are necessities vs unecessary shopping. Financial goals gives you a reason to save vs spending.
Find substitues for shopping
Since compulsive shopping fills an emotional need you must find a substitute activity such as exercise, volunteering, schedule time with family and friends.
9/07/2010
New FHA Reverse Mortgage Option
Starting early October FHA will unveil a variation to their Reverse Mortgage Plan in order to facilitate seniors involvement in the program.
FHA has annouced modifications to its Home Equity Conversion Mortgage HECM product which is a reverse mortgage loan insured by the federal government. HECM enables elderly homeowenrs (62 year or older) to borrow against the equity in their home without having to make traditional monthly payments. Under this program funds are advanced to the borrower and interest accrues, but the outstanding balance is not due until the last borrower leaves the home, sells or passes away. If the balance due upon settlement of the loan exceeds the value of the home, the FHA insurance covers the difference. The borrowers may draw down funds as a lump sum, established a line of credit or request fixed monthly payments for as long as they continue to live in the home.
The largest complaint among borrowers has been that the upfront costs were high. HUD responded by creating a variant on the standard HECM product that subtantially lowers those costs. The new product is called the HECM Saver. It provides lower upfront costs by eliminating the Mortgage Insurance Premium required to be paid upfront under the standard HECM option.
FHA has annouced modifications to its Home Equity Conversion Mortgage HECM product which is a reverse mortgage loan insured by the federal government. HECM enables elderly homeowenrs (62 year or older) to borrow against the equity in their home without having to make traditional monthly payments. Under this program funds are advanced to the borrower and interest accrues, but the outstanding balance is not due until the last borrower leaves the home, sells or passes away. If the balance due upon settlement of the loan exceeds the value of the home, the FHA insurance covers the difference. The borrowers may draw down funds as a lump sum, established a line of credit or request fixed monthly payments for as long as they continue to live in the home.
The largest complaint among borrowers has been that the upfront costs were high. HUD responded by creating a variant on the standard HECM product that subtantially lowers those costs. The new product is called the HECM Saver. It provides lower upfront costs by eliminating the Mortgage Insurance Premium required to be paid upfront under the standard HECM option.
8/30/2010
How Should You Choose A Builder
Before hiring a builder consider the following:
Have a Real Estate attorney review the construction contract before signing.
Ask for references and take the time to check them out.
Investigage the Builder and company's name online to make sure there are no complaints.
Negotiate the contract and expect him to be competative.
Obtain several extimates before deciding on any particular builder.
Have a Real Estate attorney review the construction contract before signing.
Ask for references and take the time to check them out.
Investigage the Builder and company's name online to make sure there are no complaints.
Negotiate the contract and expect him to be competative.
Obtain several extimates before deciding on any particular builder.
Home Ownership vs Rental
Top reasons for choosing homeownership over renting has to do with personal comfort.
Being your own Landlord gives you peace of mind and tranquility.
Reducing the principal serves as a savings account.
Monthly expense does not rise with a fixed rate mortgage which helps you manage your expenses.
Choosing your children schools and location allows you to properly plan according to your family's needs.
Deduction of your expenses in your taxes creates savings.
Being your own Landlord gives you peace of mind and tranquility.
Reducing the principal serves as a savings account.
Monthly expense does not rise with a fixed rate mortgage which helps you manage your expenses.
Choosing your children schools and location allows you to properly plan according to your family's needs.
Deduction of your expenses in your taxes creates savings.
8/17/2010
That Time Of Year Again - Back To School
Back to school anxiety and stress for many children and parents is just around the corner. The first day of a new school year can be difficult for children specially if going to school for the first time or changing schools.
Here are some tips to minimize your child's anxiety:
Friends are the number one concern for children starting in a new school. If you have a young child spend the afternoon at a community park in your new school zone and ecnourage your child to play with someone new. This will help making new friends before school starts. If your child is a teen then encourage participation in a school club or an athletic team.
Don't forget to remind your child that many activities will remain the same even when you change school.
Run-through of the school will show your child how to find their classroom, bathroom, and cafeteria. Define the place where you will be waiting to pick them up at the end of the day. With an older child schedule a school tour with the guidance counselor and map out where their classes are located.
However, the most important thing you can do for your child is to show your positive attitude and outlook.
Here are some tips to minimize your child's anxiety:
Friends are the number one concern for children starting in a new school. If you have a young child spend the afternoon at a community park in your new school zone and ecnourage your child to play with someone new. This will help making new friends before school starts. If your child is a teen then encourage participation in a school club or an athletic team.
Don't forget to remind your child that many activities will remain the same even when you change school.
Run-through of the school will show your child how to find their classroom, bathroom, and cafeteria. Define the place where you will be waiting to pick them up at the end of the day. With an older child schedule a school tour with the guidance counselor and map out where their classes are located.
However, the most important thing you can do for your child is to show your positive attitude and outlook.
8/16/2010
Sellers Making Their Home Ready
In today's Buyer's market and current economic conditions sellers must take extra steps to become competative enough to win a sale. With the growing abundance of shortsale and foreclosure homes, where the price points becomes the most important issue for negotiations, the condition of the property may be the single factor to swing the sale your way.
As-Is contacts make home inpsections an extremely important part of the transaction. This one single issue has the potential to make or break your sale. Therefore, sellers must distinguished between cosmetic home improvements and repairs that prevent or correct safety issues. Most buyers will accept cosmetic or inexpensive repairs because of the initial negotiated price reduction. However, when a major expensive potential problem is detected by the home inspection buyers normally walk away.
So make sure you differentiate between cosmetic and safety issues. Cosmetic are issues that items such as painting, cleaning, floor covering, and cabinet hardware among others can readily fix. Safey Issues are items such as major electrical, plumbing and foundation problems.
Some foundation problems are obvious:
cracks
bowing walls
tilting chimneys
windows or doors that are difficult to open or close
Drywall cracks that commence from corners of windows and doors
If you have any of these signs in your home, use an expert to correct the problem before you place your home on the market. If you cannot correct the problem at this time because of the economic condition, then be knowledgable and prepared to deal with the issue of cost once it comes up.
As-Is contacts make home inpsections an extremely important part of the transaction. This one single issue has the potential to make or break your sale. Therefore, sellers must distinguished between cosmetic home improvements and repairs that prevent or correct safety issues. Most buyers will accept cosmetic or inexpensive repairs because of the initial negotiated price reduction. However, when a major expensive potential problem is detected by the home inspection buyers normally walk away.
So make sure you differentiate between cosmetic and safety issues. Cosmetic are issues that items such as painting, cleaning, floor covering, and cabinet hardware among others can readily fix. Safey Issues are items such as major electrical, plumbing and foundation problems.
Some foundation problems are obvious:
cracks
bowing walls
tilting chimneys
windows or doors that are difficult to open or close
Drywall cracks that commence from corners of windows and doors
If you have any of these signs in your home, use an expert to correct the problem before you place your home on the market. If you cannot correct the problem at this time because of the economic condition, then be knowledgable and prepared to deal with the issue of cost once it comes up.
8/10/2010
FHA Helping Upside Down Owners Refinance
Starting September 7, 2010 FHA will launch a program geared to help owners that are:
1. up to date in their mortgage paymnents
2. experiencing an economic hardship
3. upside down on the value of their primary residence
4. do not currently have an FHA loan on their property
5. Have a current credit score of more than 500
Participation in this program will be voluntary on the part of all the current lien holders. The first lien holder must agree to write off at least 10% of the unpaid principal balance of the first mortgage and the second lien holders must agree to a full or partial extinguisment of the liens in return for which the U.S. Department of Treasury will provide incentives.
1. up to date in their mortgage paymnents
2. experiencing an economic hardship
3. upside down on the value of their primary residence
4. do not currently have an FHA loan on their property
5. Have a current credit score of more than 500
Participation in this program will be voluntary on the part of all the current lien holders. The first lien holder must agree to write off at least 10% of the unpaid principal balance of the first mortgage and the second lien holders must agree to a full or partial extinguisment of the liens in return for which the U.S. Department of Treasury will provide incentives.
8/09/2010
Urgent News If You Are Buying Or Selling
New guidelines effective with applications on or after June 1, 2010 affects APR, Good Faith Estimates, Truth in Lending and condo project approvals.
Fannie Mae has issued new lender mandates on a national basis. The intent is to verify that all applicant information is disclosed honestly and remains accurate as of the moment of closing.
Lenders will be required to:
1. Re-pull credit report information just prior to closing
2. Re-verify employment
3. Validate social security numbers
4. Verify intent to occupy
5. Verify that all parties to the transaction have been checked against the national "excluded party" list managed by HUD and by the General Services Administration.
The worst is the credit report for several reasons:
1. Credit report needs to be done as a soft pull so not to affect a credit score by showing an inquiry.
2. Additional credit or increase balances may change the debt-to-income ration more than 2 %. In which case, it will require suspension of loan and resubmittal to underwriting.
3. Any additional delinquencies will result in a new full credit report being pull and re-underwiriting of the loan uitlizing the new credit report.
4. Any and all inquiries from other lenders or credit suppliers must be verified by the credit bureau and certified that new debt did not occur. If new credit has been extended, the new debt must be included in the borrower's debt-to-income ratio and the loan must be re-underwritten.
Other factors affecting the underwritting:
W-2 employees that own more than 25% of a business will be required to provide business returns and cash flow analysis and full disclosure of child support and alimony. Any changes may render the applicant unqualified or delay the closing.
So What Do You Do Now?
1. Be totaly honest while submitting your loan application
2. Do not use your credit cards until after the closing
3. Do not request or accept any new credit
4. Do not change your job
Many loans will go through an immediate qulity control audit post closing. Any loans identified containing fraudulant information will be investigated by the FBI. Any applicant that signs an erroneous initial or final closing application could be committing fraud.
Fannie Mae has issued new lender mandates on a national basis. The intent is to verify that all applicant information is disclosed honestly and remains accurate as of the moment of closing.
Lenders will be required to:
1. Re-pull credit report information just prior to closing
2. Re-verify employment
3. Validate social security numbers
4. Verify intent to occupy
5. Verify that all parties to the transaction have been checked against the national "excluded party" list managed by HUD and by the General Services Administration.
The worst is the credit report for several reasons:
1. Credit report needs to be done as a soft pull so not to affect a credit score by showing an inquiry.
2. Additional credit or increase balances may change the debt-to-income ration more than 2 %. In which case, it will require suspension of loan and resubmittal to underwriting.
3. Any additional delinquencies will result in a new full credit report being pull and re-underwiriting of the loan uitlizing the new credit report.
4. Any and all inquiries from other lenders or credit suppliers must be verified by the credit bureau and certified that new debt did not occur. If new credit has been extended, the new debt must be included in the borrower's debt-to-income ratio and the loan must be re-underwritten.
Other factors affecting the underwritting:
W-2 employees that own more than 25% of a business will be required to provide business returns and cash flow analysis and full disclosure of child support and alimony. Any changes may render the applicant unqualified or delay the closing.
So What Do You Do Now?
1. Be totaly honest while submitting your loan application
2. Do not use your credit cards until after the closing
3. Do not request or accept any new credit
4. Do not change your job
Many loans will go through an immediate qulity control audit post closing. Any loans identified containing fraudulant information will be investigated by the FBI. Any applicant that signs an erroneous initial or final closing application could be committing fraud.
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