REAL ESTATE ONE

2012-01-06T10:40:00.000-05:00

13,000 Tankless Water Heaters Recalled
Carbon monoxide poisoning threat prompts recall of certain tankless water heaters. Read
Space Heater Safety: Make Sure Yours Hasn’t Been Recalled
Check your space heater to make sure it’s not one of 2.5 million recently recalled. Read

Visit houselogic.com for more articles like this.

Clever Christmas Gifts for the Home to Fit Any Budget From gutter rakes to a helping hand, our 2011 Christmas gift guide is a potpourri of clever ideas for your home that will fit any budget. Read 5 Holiday Hosting Disasters and How to Avoid Them Take a look at the most common things that can go wrong when you have guests and learn how to prevent them. Read Visit houselogic.com for more articles like this. Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

2011-12-09T15:59:00.000-05:00

2011-10-07T10:39:00.001-04:00

Essential Heating System Maintenance
Getting your home’s heating system professionally serviced every year will keep it running smoothly and help keep heating costs under control. Read

Visit houselogic.com for more articles like this.

2011-10-07T10:32:00.000-04:00

Keep Your Home Sale from Falling Apart
After finding a buyer, all you have to do to make it to closing is to avoid these five traps. Read

Visit houselogic.com for more articles like this.

What Foreclosures Cost the Community

2011-08-30T15:53:00.000-04:00

By Jennifer Dixon

The effects of a home foreclosure extend beyond the family losing its property. The costs—emotional and financial—extend to neighbors, communities and others, though estimates vary.

Lender: The Joint Economic Committee of Congress wrote in 2007 that foreclosures carry an average cost of about $78,000, while preventing a foreclosure costs about $3,300. Most of the expense ($50,000) is borne by the lender, which takes title to the home and must find a buyer.

The Mortgage Bankers Association said costs to lenders include lost principal and interest payments, tax and insurance on the property, maintenance and real estate commissions when a home is sold.

Homeowners: The congressional report put the average cost to homeowners at $7,200 for lost equity, moving expenses, legal fees and the like. They will likely take a hit to their credit score, which can affect jobs because some employers check credit scores before hiring or promoting workers. Lose a home, and you also lose the tax advantages of owning a home.

Local government: Communities can lose anywhere from a few hundred dollars to more than $30,000 on foreclosed homes, according to a study by the Urban Institute. That includes lost property taxes, unpaid utilities and costs for upkeep or demolition of a property. Vacant properties also can mean lower property values, cutbacks in government services and a rise in crime and blight.

Neighbors: Particularly for close neighbors, studies show a single foreclosure can lower home value anywhere from 0.6 percent to 1.8 percent. The Center for Responsible Lending put the average neighbor dollar loss at $5,800 to $8,700.

Prepping a Home for Sale: Simple Staging Tips for Inside and Out

2011-08-02T10:53:00.000-04:00

By Barb Schwarz, Stagedhomes.com

Before you show your home to any potential buyer, you want to make sure the staging is perfect. Follow these general tips and your home will look better than the competition.

FOR THE INSIDE

■Clear all unnecessary objects from furniture throughout the house. Keep accessories and objects on the furniture restricted to groups of 1, 3, or 5 items. In general, a de-cluttered home helps the buyer mentally “move in” with their own things. Rearrange or remove some of the furniture in your home, if necessary. Many times home owners have too much furniture in a room. When it comes to selling your home, thin out overcrowded rooms to make the rooms appear larger.

■Clear all unnecessary objects from the kitchen countertops. If it hasn’t been used for three months…put it away! Clear refrigerator fronts of messages, magnets, pictures, etc.

■In the bathroom, remove any unnecessary items from the countertops, tub, shower stall, and commode top. Keep only the most necessary cosmetics, brushes, perfumes, etc., in one small group on the counter. Coordinate towels in one or two colors only.

■Take down, reduce, or rearrange pictures and objects on walls. Patch and paint all walls, if necessary.

■Review the house interior, room by room, and…1. Paint any room needing paint.

2. Clean carpet and draperies that need it.

3. Clean windows.

■Pack up and store. If you need room to store extra possessions, get a storage unit.

■Leave on certain lights during the day . During showings turn on ALL lights and lamps.

■Set a background tune. Play light FM music every day in the house, for all viewings.

FOR THE OUTSIDE

■Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., to the garage or, if applicable, take them to the dump.

■Check gutters and roof for dry rot and moss. Make sure they are swept and cleaned.

■Examine all plants. Plants are like children…they grow so fast. Prune bushes and trees. Keep plants from blocking windows: “You can’t sell a house if you can’t see it!”

■Remove any dead plants, weed all planting areas, and put down fresh mulching material.

■Keep your lawn freshly cut, edged, and fertilized during the growing season.

■Clear patios or decks of all small items, such as little planters, flower pots, charcoal, barbeques, toys, etc.

■Check the condition of the paint on your home, especially the trim and the front door. The first impression, or “curb appeal,” is very important.

IN GENERAL

Try to look at your house “through a buyer’s eyes,” as though you’ve never seen it before. This exercise will help you see what needs to be done. Any time and money invested on these items will usually bring you the return of more money and a quicker sale.

What Could be Devaluing your Property?

2011-08-02T10:40:00.000-04:00

Article by Melissa Dittmann Tracey, REALTOR® Magazine

Any number of things has the potential to devalue a property and turn off buyers. According to a recent article by Investopedia (“Sellers Beware: 8 Factors That Devalue a Good Home”), here are a few common factors that often devalues a property … Do you agree?

Nearby eyesores. Cell phone towers or power lines overlooking a home can make some buyers skittish about the property. Also, messy neighbors or unsightly abandoned nearby homes also might devalue your listing (e.g. According to research by the Center for Responsible Lending, foreclosures will affect 91.5 million nearby homes by 2012 and reduce property values of these homes by $20,300 per household.). Read: Battling the Neighborhood Eyesore

Renovations gone wrong. Investopedia refers to this as the “DIY nightmare” when home renovations are done poorly.While renovating a property can help increase its value, renovations that are not done properly can have the opposite effect. If buyers look at the renovation as something they will have to redo, they may bypass the property, or submit a lowball offer to factor in the “DIY nightmare.”

Bizarre design choices. Some buyers just can’t see past that pinkish honeysuckle accent wall, even if it is this year’s “color of the year.” Unusual paint colors or home design choices that are overly trendy can be turnoffs and even devalue the home. Also, customized spaces that are no longer serving its function, such as a converted garage that now functions as a home gym or bedroom, might make some buyers think twice. And even “a professional chef’s kitchen or marble bathrooms in a modest home suited to first-time buyers won’t likely provide a good return on investment,” the article notes.

Uninviting curb appeal. The exterior of a home offers buyers their first impression of the property–so if the exterior looks outdated or in poor condition, buyers likely will assume the same applies for the inside too. Old fences and sheds can devalue a home. Also, gardens should be weeded and lawns freshly mowed so buyers won’t misjudge a home by its exterior cover.

9522 Huron River, Dexter $389,000

2011-06-14T15:50:00.001-04:00

9522 Huron River, Dexter $389,000, a photo by realestateonedexter on Flickr.

ELEGANT CONTEMPORARY HOME FEATURES OVER 3200 SQ FT OF LIVING SPACE. FULL COVERED FRONT PORCH OVERLOOKS PEACH MOUNTAIN, 2 STORY FOYER, 1ST FLR MASTER W/TRAY CEILING & PRIVATE BA W/JACUZZI TUB & WALK IN CLOSET. 2ND BR & FULL BA ON 1ST FLOOR. OPEN FLOOR PLAN W/9FT CATHEDRAL CEILINGS OFFERS A FEELING OF OPENNESS. 1ST FLOOR LAUNDRY. CATWALK STYLE HALLWAY ON 2ND FLR CONNECTS BEDROOMS & FULL BA W/DOUBLE SINKS TO BONUS ROOM OVERLOOKING FIRST FLR. COVERED BACK PORCH, 3 CAR ATTACHED GARAGE PLUS 32X30 POLE BARN WITH ROOM FOR ALL THE TOYS

3600 Meadow View, Dexter $225,000

2011-06-14T15:17:00.001-04:00

3600 Meadow View, Dexter $225,000, a photo by realestateonedexter on Flickr.

BEAUTIFULLY DECORATED & MOVE IN READY! Fantastic home in desirable sub. Lovely kitchen w/granite counters, backsplash, snack bar, w/updated ceramic tile flooring. Spacious great room w/fireplace, plus a formal Dining/Living room. Master suite w/walk-in closet & cathedral ceilings. Finished basement for additional living space, w/nice lighting & good storage. Back yard w/gorgeous stamped patio and deck. Nicely maintained yard & landscape w/inground sprinkler sys & invisible fence. Convenient to schools, downtown, Ann Arbor, I-94...

10770 Splitstone, Pinckney MI 48169 $269,900

2011-06-06T15:09:00.002-04:00

VERY DESIRABLE COBBLESTONE CREEK. PERFECT CONDITION INSIDE & OUT. MAIN FLOOR LARGE MASTER STE,GREAT ROOM W/FIREPLACE, CROWN MOULDING W/UPLIGHTING, FORMAL DINING ROOM, OPEN KITCHEN W/DESK AREA, STAINLESS STEEL APPLIANCES. DOORWALL LEADING TO SPACIOUS DECK. UPSTAIRS OFFERS THREE GOOD SIZE BEDROOMS, FINISHED BONUS ROOM. PROFESSIONAL LANDSCAPING W/SPRINKLER SYSTEM. ONE LOOK AND YOU WILL FALL IN LOVE.

The Real Estate Market is improving at last. Something to smile about...

2011-04-25T13:03:00.004-04:00

4611 Inverness, Dexter

2011-04-14T11:43:00.000-04:00

4611 Inverness, Dexter: "Remarkable Lower Level Ranch Condo With Beautiful Views Of The Woods In The Backyard. Private Setting W/ Screened In Porch For Those Relaxing Moments. The Home Has Been Painted In Nuetral Colors & Offers A Wood Flooring Look With Laminate. The Master Bedroom Is Extra Large, Has 2 Closets, & A Private Bath. It's Ready For You To Move In Plus Includes All The Appliances. Great Location In Dexter - Close To The Library, Restuarants, Theatre, Schools, & So Much More. Possible Land Contract. 10 Minutes To Ann Arbor. Motivated Seller"

Relay For Life Event in Dexter

2011-03-23T12:36:00.002-04:00

Real Estate One Dexter will be participating at the Relay for Life Event on May 14 & 15. This event will take place at the Monument Park downtown Dexter. We love for you to join us on our efforts. If you would like to help support our efforts, click on the link and donate or join us. Every one is welcome and every penny counts.

Thank you.
http://main.acsevents.org/site/TR/RelayForLife/RFLFY11GL?team_id=914078&pg=team&fr_id=30160

Home for Sale

2011-03-22T11:10:00.000-04:00

1475 Kirtland, Ann Arbor

Three bedroom brick ranch with hardwood flooring throughout all of the home except the kitchen and bath. Living room with large picture window and a wood burning fireplace with slate tile surround and built in bookshelves. Original tile in updated bath with new fixtures and storage. Partially finished basement with fireplace, bar area and half bath.

Give us a call for detail! 734-426-1487

Spring is in the Air for the Real Estate Market

2011-03-08T11:29:00.004-05:00

Home owners are once again ready to put their homes on the market and our inventory is increasing steadily. Working with a Realtor is the best way to ensure you have access to the latest & most up to date information on the real estate market. While browsing the internet, and sites like realtor.com, homes.com etc are a good way to get an idea of the current market picture; using a Realtor is the only way to ensure you don't miss out on great opportunities.

Take a look at our newest inventory.

8212 Terrace Ct.- Hamburg, MI

This 4 bedroom family home is located at the end of a cul-de-sac. Over 2700 sq ft of living space. Finished walkout basement is plumbed for a bath and offers lots of storage. Cathedral ceiling in the family room, fireplace and doorwall leading to nice deck. Open kitchen with island and wood floors. Master Ste has cathedral ceilings and walk in closet. Professional landscape w/sprinkler system. MLS 3101585

13925 Riker-Chelsea, MI

Quality construction, energy efficient, 22 private acres & wildlife galore. This home tops them all! Perfect for entertaining -Kitchen w/ hickory cabinets open to gorgeous greatroom w/hrdwd flrs & "real" stone fireplace. 6-7 bedrooms for a lrge family or guests. Full fin W/O LL w/wet bar, 2nd study, wood burner. Perfect in-law qtrs. Extensive lighting thru-out. Inverness golf course across the road. 30x40 pole barn w/14' ceiling & cement floor-storage, workshop, horse barn... Home on 12 ac + 10 acre parcel w/splits(hunters dream)
MLS#3101578

If you are interested on additional information feel free to give us a call at 734-426-1487. We would love to help you find the home of your dreams.

Check out the latest addition to our listing inventory

2011-03-04T11:26:00.003-05:00

10631 INDIANOLA- WHITMORE LAKE

Lake living at it's best! This stunning contemporary home enjoys allthe perks of the most desirable lake around with peace and quiet. Strawberry lake access just around the corner, almost 1 acre lot, 2000 + sq ft of space, open light filled kitchen with eat in space. Great room with cathedral ceilings, dining room, master suite, expansive decks on front and back of home, beautiful landscape. This home is perfect for a family or empty nesters. All living areas are on the main floor. Additional 2nd story study. Jog, walk or push a stroller on new pavement.
.
Feel free to give us a call for more information at the office: 734-426-1487 or if you prefer you may contact the listing agent: Kim Johnson at 734-649-2396

Why 2011 May Be the End of the Housing Crash

2011-02-28T14:40:00.001-05:00

By SIMON CONSTABLE

There might finally be some good news this year about the nation's dismal housing market. Or, at least, the bad news could stop.

Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reasons to be optimistic have been sadly lacking since the housing bubble burst in 2006.

For sure, last week we learned the widely watched S&P/Case-Shiller home-price index fell 1% in December, its fifth straight decline. The index tracks 20 major markets.

But that figure belies real reasons to be optimistic, according to some experts. If they are right, it might make sense to jump into real estate. The trick is avoiding getting burned again, and it doesn't necessarily mean owning a home.

First, let's recap the economic signs a bottom is close.

Houses Are a Good Deal

Housing is the most affordable it has been in decades, according to analysts at Moody's Analytics. They don't just look at house prices. They also look at incomes.
Nationally, the cost of a house is the equivalent of about 19 months of total pay for an average family, the lowest level in 35 years. Prices usually average close to two years' pay, although that varies nationally.
At the peak, midway through the last decade, a home in Los Angeles cost the equivalent of 4.5 years' pay. The average price has since fallen to just over two years' income now. That's well below its pre-bubble average of 2.6 years. This means average Los Angeles homes are cheaper in "real terms" than they were typically during the period 1989 through 2003.

The opposite is true around the Washington beltway, where it will take 26 months of pay to buy a home, versus the historical norm of 22 months.

In the end, it will be affordability that will drive people to buy homes.

"Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own," says Michael Larson, a real-estate analyst at Weiss Research in Jupiter, Fla.

"Housing prices will probably bottom in 2011," says Scott Simon, a managing director at money-management firm Pimco in Newport Beach, Calif. He foresaw the housing crash, helping his firm dodge losses that plagued Wall Street.

Mr. Simon says prices might dip another 5%. Still, in the scheme of things, that's small. Consider this: In some markets, home prices have fallen by half or more since 2006.

For instance, in once-hot Miami you can snap up an average house for under $166,000, according to recent data from the National Association of Realtors. That's down from $371,000 in 2006. Another 5% drop would take it to $158,000.

Investors Stepping Up

Here's another sign the market is nearing a bottom: Investors have started to buy up houses and condos, in some instances paying entirely in cash. That's a far cry from the heady bubble days when borrowed money seemed the key to riches. The bubble-era speculators who got burned tended to buy at the peak and borrowed heavily to do so. When the crash came, they quickly saw their wealth erased.

Take Miami again. Last year, more than half of all transactions were made entirely in cash, according to a recent report in The Wall Street Journal. That compares with 13% of deals in the last quarter of 2006, the height of the bubble. Similarly, in Phoenix 42% of sales in 2010 went to all-cash buyers, up threefold since 2008.

It's a sign that these investors are betting on a rebound. Investors buying at current prices are looking for deals, or so-called bottom fishing. They typically like to pay entirely in cash (or with a relatively small loan) to speed up transactions. That can be vital for an investor wishing to lock in a deal fast.

If this is a turn in the market, then it might make sense to go out and buy a home. But, warns Pimco's Mr. Simon, "buy in areas you really know."

Plan to Stay Put

Buy and hold. While the good news is that the worst of the housing crash might be over, the bad news is that the fast gains of the glory days of 2005 and 2006 won't be back any time soon. So to cover the costs of buying and selling, and what could be a prolonged recovery, plan to own for more than 10 years, explains Jack Ablin, chief investment officer at Chicago-based Harris Bank.

Also remember that borrowing money to buy a house can still be risky. If you pay for a $100,000 property with $20,000 cash and borrow the rest, a dip in the value of $20,000 would leave you with zero equity. On top of that, you'd have to pay to maintain and repair the property, something not necessary when renting.

2011-02-15T14:50:00.000-05:00

Homeownership Makes $ense

Written by Howard Voyles

Friday, 28 January 2011 14:40

Bring on the buyers! At last, the housing market is beginning to make sense again. The ownership line is finally crossing over the rental line on the great Homeownership graph.

It is now more expensive to rent than to buy a home in 72% of major metropolitan areas across the US, according to the Trulia Rent vs. Buy Index released in January.

This is due to rising demand for rentals and falling home prices combined with low interest rates.

Pete Flint, chief executive and co-founder of Trulia says: “Since the start of the Great Recession, many former homeowners have flooded the rental market… Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets.”

The index compared the median list price and rent paid for a two-bedroom home in 50 cities. It then assigned a price-to-rent ration to each city with 15 signifying a buyer’s market and 21 or more signifying a renter’s market. The space between the two numbers signifies a balanced market.

The cost to rent includes rent and insurance. The cost of ownership includes mortgage principal and interest, closing costs, property taxes, hazard insurance and any homeowner association dues.

Not surprising, the most affordable markets are Las Vegas and Miami where the price-to-rent ration is 6 and where the foreclosure rates have topped the charts. Las Vegas was atop the foreclosures list in Q3 with one in every 25 homes was in foreclosure.

The index reported that homeownership was cheaper in the metro areas of San Francisco, Seattle, New York and Kansas City, MO, all of whom had price-to-rent ratios over 21.

Other metros like Oakland, Sacramento, Los Angeles, Miami and Phoenix are experiencing elevated rates of unemployment or foreclosures and close economic centers with projected job growth are still more affordable to renters.

This is truly great news for the Housing Industry.

Looking for good restaurants at affordable prices?

2011-02-08T13:40:00.000-05:00

Times are difficult and everyone is trying to save a peny or two, but is not necessary to completely forgo the extras like eating out from time to time.
Here is a link to a web site that will allow you to purchase discount coupons to your favorite places. Check it out.

Low Costs and Spring Fever Expected to Spur Home Buyers

2011-01-31T14:50:00.000-05:00

Overcoming Realtor hate | Inman News

2011-01-13T11:48:00.000-05:00

Overcoming Realtor hate Inman News

Michigan Property Tax Explanation

2011-01-11T15:03:00.002-05:00

Cheaper Homes Cost More to Build

2011-01-10T15:46:00.001-05:00

By Dan Chiras

As I travel the country, talking with builders, architects, homeowners and ordinary citizens about green building, I’m continually confronted with the issue of building cost. The standard response to my talks is “Your ideas on green building are all well and good, but, bottom line, they cost more and people aren’t going to pay more for a green home.”

My standard reply to the conventional logic is, “What people have to understand is that it costs more to build a cheaper home.”

What I mean by that is simple. The cost of a home isn’t the price you pay when you sign on the dotted line. That is, it is not the cost of the mortgage. The cost of a home is the cost of the mortgage and the utility bill plus maintenance and even health costs.

By building a super energy-efficient, healthy, durable green home, you may increase the mortgage, but you’ll dramatically lower the utility bill. You’ll lower maintenance costs, and could even reduce health costs.

Ultimately, by building such a home, you’ll pay less — a lot less.

And, of course, the corollary is that it costs a lot more, in the long run, to build a cheap home. You may save a little on the mortgage by purchasing a cheaper home, but you’ll pay an arm and a leg in the long run.

Use the New Year to Build a Financial Fundation

2011-01-06T11:41:00.002-05:00

11 Inexpensive, Simple Holiday Decor Ideas

2010-12-23T12:27:00.002-05:00

Mortgage Interest Deduction: Do You Need It?

2010-12-14T11:24:00.000-05:00

Economists Predict Growth in 2011 .

2010-12-13T13:59:00.002-05:00

Crafty Ideas for Winter Curb Appeal

2010-12-09T10:59:00.003-05:00

Yes, it's still possible to create great curb appeal when it's cold and gray outside.

By Melissa Dittmann Tracey

During summer months when gardens are in bloom and the sun is shining bright, curb appeal comes naturally to many homes. But when the autumn chill turns to winter cold and the sun sets earlier in the day, it becomes more difficult to create that inviting exterior look that grabs buyers from the curb.

Fortunately, it is possible to create striking winter curb appeal without expensive or complicated exterior changes, says Charlene Storozuk, a home stager and designer with Dezigner Digz in Burlington, Ontario—a city that averages 51 inches of snow per year. It just requires a little creativity.

She and other home-design experts offer these eight tips:

1. Add splashes of green and purple. Plants, grasses, and evergreens can liven up a home’s winter landscape. Experiment with tall grasses, such as fountain grasses, that survive harsh winters. And in late fall and early winter, plants from the cabbage family add a vibrant purple color. Make the front door the focal point with a large wreath adorned with a colorful ribbon. To finish the look, place large, colorful planters filled with evergreens beside the front door, suggests Elizabeth Lord, broker with Carolina Farms & Estates LLC in Rock Hill, S.C.

2. Give it seasonal sparkle. Transform an unused bird bath or fountain into a seasonal display by adding twigs with red berries. Or fill frost-resistant urns with twigs, winter greenery, and sparkly baubles (sold at most craft stores), Storozuk says. For extra sparkle, roll twigs in glitter and incorporate a gazing ball—a mirrored glass ball available in various colors—into the display.

3. Make the garden statuesque. Roman- or Greek-themed outdoor sculptures can add class and elegance to a garden in winter. Be sure to use frost-resistant statues so they don’t crack, Storozuk says. Place the statues strategically throughout the garden to draw buyers’ eyes around the outdoor space.

4. Light it bright. During the winter, it’s more likely that buyers will be viewing home after sunset. Use clear flood spotlights to focus on the home’s architectural features, Storozuk says. Keep exterior lighting fixtures at maximum wattage and clean them regularly. When snow covers the ground, Michele Thompson, broker-owner of White Fence Real Estate in Vevay, Ind., takes photos of listings at night with all of the interior lights on—the light bounces off the white snow to create a warm, inviting glow. For the best results, turn off the flash, and use a tripod to avoid blurring, she says.

5. Show off the lifestyle. Just because it’s cold outside doesn’t mean you can’t use the deck. Shovel your backyard sitting area and leave your grill uncovered so buyers can envision themselves using the space, Storozuk says. If the home has a hot tub, leave that open and running during showings as well.

6. Make the deck an extension of the house. Set up your outdoor tables and chairs just as you would in warmer months. “Home owners often cover their furniture and place lawn objects haphazardly on the deck,” says Kitty Schwartz, president and owner of Classic Home Staging in Katonah, N.Y. For added appeal, she adds a weatherproof cafe set with pillows that play off of interior accent colors. “Glancing out onto this type of vignette can make the indoor space feel larger and more interesting,” she says.

7. Create a photo display of sunnier days. Show buyers what the outside of the home looks like during other seasons by displaying some landscape photos in frames or using a digital photo frame with a slide show of images. “This will give a sense of what the property looks like at other times of year,” Storozuk says. If the home has a garden, make a list of what’s planted where. “Perennials can be expensive,” she says, “so treat them as a selling feature.”

8. Don’t forget to clear a path. If the ground is covered in snow, the simplest and most important thing you can do is shovel the driveway and sidewalks and keep the home’s patios and decks as clear as possible so buyers can get a sense of their true size.

Bring Out the Best in Basements

2010-12-06T14:37:00.000-05:00

Basements are often dark and dingy or cluttered and chaotic. Find out how to brighten up that space and make it look livable.

By Kristine Hansen

September 2010

Basements can adopt a split personality. On the one hand, it’s a sweet storage space with minimal décor and a high tolerance for accumulating dust. Yet when it’s time to sell — especially in a competitive real estate market — or expand the home’s livable square footage, the basement needs a little dressing up. That’s when home owners and real estate pros can work together.

One approach is to think big and transform this below-ground level into higher-end living space, whether that's a family room, children’s play area, or guest bedroom. “I have seen people take a basement and turn it into a family room, put in nice carpeting, and even build a little room around the utilities,” says Chobee Hoy of Chobee Hoy Associates in Brookline, Mass. “Hanging pictures … anything that looks pretty.”

It might encourage a sale. Yet it might not up the asking price, says Hoy. Many times a basement is not included in a home’s total square footage of livable space. “The square-foot value is not as high as the second or third floors. Don't put in the fanciest bathroom you can, because you might not get your money back,” she says. “You might have trouble selling the house for what you think it will sell for.”

Still, buyers want more room for the asking price, and a basement provides that option.

“Sometimes if a buyer needs extra space, and that’s the only space that’s available, that’s attractive,” says Hoy. She’s seen photographers gravitate towards homes with sizeable basements simply because they make great darkrooms and studios.

A listing for a home that Steve St. Arnault, an associate with Newbury Properties in Quincy, Mass., is attempting to sell has a basement that could be a model for all the dark, damp basements out there. In fact, he says, “it’s a bright and sunny spot.” The home owners painted the exposed pipes a brilliant shade of copper. Travertine flooring is a step above concrete or cheap carpet. “They wanted to encourage resale,” he says. “They also added a master bedroom suite on the top floor and granite countertops in the kitchen.”

But for basements that need just a little decorating rescue, there's a lot of hope.

“Make the basement a place that you want to go to,” suggests Peter Jeswald, author of Basement Ideas That Work: Creative Design Solutions for Your Home (Taunton Press, 2007). “So often, basements are associated with low-quality, cheap hung ceilings, wood paneling, and inexpensive carpet on the floor. Treat it no differently than you would the first floor of your house.”

Home owners should start by upgrading the basement's entryway and gradually work their way through the space, with the end goal a lighter, brighter, and cleaner basement. If it’s down a dark, narrow stairwell, open up that stairwell or — at the very least — install brighter lighting. In lieu of opening up the staircase, which can be quite expensive, Jeswald suggests add a half wall or creating an open railing. “Make it so that you’re no longer traveling through a narrow door to this narrow, dim-lit stairway,” he says. “Long, narrow spaces accentuate the feeling of being depressed.”

But if the end goal isn't more square footage but simply a cleaner basement, there are many inexpensive approaches to consider, starting with a broom and dustpan.

“The best thing you can do is clean it up,” Hoy says. “Get rid of the cobwebs. Whitewash the walls. Do whatever you can to make sure it has a good smell.”

Eliminating moisture may require the installation of gutters or a French drain. “Vapor can migrate through the walls and come up through the floor,” says Jeswald. Installing a dehumidifier should eliminate this problem.

The No. 1 problem with basements is a lack of adequate lighting. While the natural-lighting flow can't be altered because the space is underground, plenty of lights will create a sense of open, airy space on a par with the rest of the house.

“You want to get light into the basement and then you want to spread it around, to penetrate the space,” Jeswald says. Adding a table lamp here and there is probably not going to be sufficient. Adding larger windows is the best bet.

Creating larger window wells adds light — and offers an additional safety feature. “Nowadays most window wells have a ladder,” Jeswald explains, “so not only are you adding light but you’re adding an element of safety, especially if it’s a bedroom or recreation space.”

If either or both of these fall outside of the budget — but increasing light remains a priority —there are other options that are more about cosmetic fix-ups. These include installing French doors, which help divide the space, or putting up opaque walls that allow sunlight to bounce around.
Artificial lighting should be a last resort, Jeswald says.
Even more inexpensive are these two tips he offers on how to deal with the infrastructure of piping and columns by integrating them into the design. Create a bookshelf by installing flat boards between two columns. Turn an awkward pole into a bistro table by featuring a flat surface that juts out from it.

“If your budget is limited,” says Jeswald, “integrate these two into the design.”

And don’t forget about any exterior entryway to the basement. Even if it's rarely used, it's still going to be examined by potential buyers. It also could discourage people from coming into the basement if it’s not attractive. “Sometimes the door leaving the basement isn’t very attractive and people don’t put a lot of thought into it, but they should,” says Hoy.

NAR Home Buyer and Seller Survey Shows Value of Long-Term Home Ownership

2010-11-09T12:10:00.000-05:00

What’s In, What’s Out With Home Design

2010-11-08T13:32:00.000-05:00

October 28, 2010 by Melissa Tracey

Filed under: Home Trends

By Melissa Dittmann Tracey, REALTOR® Magazine

Coinciding with a sluggish housing market, home owners have changed their preferences about how space is used and designed in their homes. Function over extravagance has reigned in recent years, along with affordability, when it comes to home features, according to the latest American Institute of Architects Home Design Trends Survey for the second quarter of 2010.

Here are a few highlights from the report, based on nearly 300 residential architects who were surveyed about the design preferences of U.S. households.

WHAT’S IN

Home offices: More people are working out of their home or telecommuting, prompting more home owners to want a dedicated workspace in their homes.

Outdoor living areas: Home owners want to expand their living space into the outdoors and are seeking to incorporate more outdoor living elements into their lifestyles, AIA Chief Economist Kermit Baker said in a public statement about the survey.

Mud rooms: The need for additional closets and other storage space, as well as the increasing informality of space in the home, is driving more home owners to want mud rooms, according to the report.

Energy-saving features: Home owners are seeking energy efficient products and systems that will reduce their rising utility costs. Those energy efficient products and materials that have boasted the greatest increase in interest in recent months include items such as double and triple glazed windows, tankless water heaters, and low maintenance materials.

WHAT’S OUT

• Media rooms/home theaters

• Exercise/fitness rooms

• Hobby/game rooms

• Home workshops

• Kid’s wings/guest wings

• Interior kennels

• Interior greenhouses

Co-signing risks for first-time buyers | Inman News

2010-10-22T11:23:00.000-04:00

Co-signing risks for first-time buyers Inman News

Foreclosures hit post-bust peak in third quarter

2010-10-14T12:10:00.002-04:00

Calls Mount For Foreclosure Moratorium, Investigations

2010-10-11T14:39:00.000-04:00

Real Estate Market Update from the President of Real Estate One

2010-09-20T11:29:00.000-04:00

The combination of the lowest interest rates in 50 years and the lowest number of available homes in five years would normally indicate a strong Seller's Market. In our case, the third leg of the real estate stool, employment growth, is still wobbly enough to offset some of the value of the first two. However, in spite of the economy, Michigan looks to be one of the strongest real estate markets in the country.

Low home inventories, incredible pricing and a general feeling that we are moving off our low point are combining to keep the market moving. Our post tax credit sales have not fallen to the same degree as most of the country and surprisingly, thanks to record low interest rates, August sales rebounded ahead of last August (we were expecting a 10-15% decline). Northwest Michigan did show a decline, but less than expected (and our own numbers were up!). In some price segments (mainly under $100,000) there are enough cases of multiple offers to say for the first time in five years, we are setting a foundation for value appreciation.

Current tough lending and appraisals standards continue to be one of our biggest stumbling blocks towards a stronger appreciation foothold. Appraisers are being held back, still focused on a declining market as opposed to an appreciating or even neutral market view. However, like any cycle, those standards will eventually move back towards a reasonable range (we hope sooner than later). In many instances, buyers have had to make a larger down payment to bridge the gap between the sale price and appraised value. This is not necessarily a bad strategy for the buyer if there are multiple offers, since those offers indicate the true market demand fits the price.

As we said last month, this is the best time in the past three years for a Seller to put their home on the market (particularly under $200,000). The price you will receive may not be what you had hoped, but values have stabilized from their 1-2% per month decline. This perfect combination of low rates and low inventory may be temporary as both rates and inventories (pent up bank owned) will certainly rise. For Buyers, it is likely that both values and interest rates have bottomed out, meaning that waiting to buy will cost as oppose to save you money.

Certainly, we have a record number of Sellers who are not able to move because of value declines and/or mortgage balances and we are still working through a large backlog of financially distressed home sales. However, there are strong underlying factors that will push the real estate market upward, albeit slowly, regardless of the current economic issues. The first time buyer segment (Gen X and Y) is building up at a record pace, move up/out Sellers are also at record pent up demand levels (Baby Boomers looking to make their final moves). Most homeowners who have had to sell or lease as a result of financial stress can't wait to purchase a home the first chance they get. Sellers who are short on equity to move, are not short on their desire to move. All told, there is near record interest and demand for housing which will fuel steady housing growth as we move out of our recession.

Economic declines always hit harder than predicted and rebounds always happen faster. This rebound should be no different. It will not come roaring back, but for all the reasons stated above, the real estate market will rise faster than most have predicted. Below are a few economic indicators from the monthly Comerica Economic Brief. You can see in many areas, Michigan is clearly bouncing off the bottom.

Setting Clear Expectations Helps Create a Streamlined Short Sales Approach

2010-09-13T11:33:00.000-04:00

RISMEDIA, September 10, 2010—Anyone that works in the real estate industry knows that a short sale transaction can take months to be approved and closed. While short sale approvals can be completed in a short timeframe, the reality is that short sales usually take three to four times as long as a regular sale to finally get to the closing.

From the time the Realtor actually gets the property under contract to the time the lender approves it, it could take anywhere from 30 days to 6 months, depending on how fast the borrower provides critical information for both lender and investor approval. Even then, you still have one more variable to account for which is the buyer waiting all this time to get the contract approved by the lender. To account for the numerous variables that accompany a short sale transaction, it is crucial for real estate professionals to set clear expectations before beginning the short sale process.

Buyers’ expectations

Buyers who make an offer on a short sale property need to know that lenders have to “reverse underwrite” a short sale and make sure they are allowing the sale to happen close to market value. By reverse underwriting, lenders will look for “un-affordability” instead of determining the home’s affordability. They will check the seller’s financial documents to verify that they can’t afford the house anymore and consequently, they will order a broker’s price opinion (BPO) from a broker or certified appraiser to make sure the house is being sold close to market value. If the offer is too low compared to what is owed, it will make more financial sense to the lender to just foreclose the property and re-sell it as an REO (Bank-Owned Property). All this will happen while the buyer is still waiting for a response, so it is very important to set the expectations correctly from the beginning to avoid losing the buyer close to the end of the process.

Sellers’ expectations

On the other hand, it is important to also educate the seller and set the expectations with them from the beginning. They need to understand that the lender takes their time while responding, but when they do, they usually give a 72 hour timeframe to respond or provide the missing documentation. If the documentation is not provided within the specified timeframe, it usually ends up in a closed file. Another common situation that is happening very often is borrowers being served with foreclosure paperwork from either the lender or Homeowner’s Association while the short sale is being processed. It is crucial to let the seller know that this might happen so they are prepared and receive the documents knowing they are in the best hands. Foreclosures and short sale are parallel processes and one does not cancel the other. Sometimes a short sale might delay a final sale date, but it will definitely not stop the lender from starting the foreclosure proceedings.

Daniel Manzano is Managing Director of Best Beach Title in Miami.

Six New Hurdles for Home Financing

2010-08-06T10:25:00.000-04:00

Buying a home is never easy, but these current obstacles make it especially problematic.

By Amy Fontinelle of Investopedia

If you've been in the market for a mortgage recently, you've no doubt noticed how difficult it can be to get approved. You're not imagining it, and it's not just you. Paul McFadden, a loan officer with The Legacy Group in Bellevue, Wash., says, "These days, the number of mortgage applications that get approved is probably three out of 10. In the heyday, it was nine out of 10. Normally five or six out of 10 would be the ratio."

Underwriting standards have tightened, meaning that borrowers need higher credit scores, more income and higher down payments. And that's not all. There are many challenges to financing a home, but the following six are especially problematic in today's market.

1. Higher credit score requirements

Want a loan? You'd better have top-notch credit to get the best deal or, in some cases, to get approved at all. McFadden notes, “Although loans can be had in most cases for credit scores down to 620, they often come with a higher rate and/or fees."

Gregory B. Meyer, community relations manager with Meriwest Credit Union, says, "Credit is an issue, as lenders have raised the bar on credit scores. In 2006, a 680 FICO would get you into a house. Now it takes about a 740."

2. Greater scrutiny of income and assets

"In the past, banks were lax in verifying income and deposits. Now those things have more scrutiny,” Meyer says.

Tom Wissert, who has more than 30 years of experience in real estate, banking and mortgage lending, says, “Homebuyers better get ready to prove that just about anything that looks hinky on their application is not an issue. Mortgage lenders today have to verify, reverify and reverify again. Qualified buyers are now put through the wringer and often turned down because of appraisal issues, property issues or anything that looks strange, even if the buyer can prove they can pay cash for the property."

He says that we are now seeing regulatory overkill "after years of letting the rules be compromised by mortgage lenders who would not follow the traditional rules that are time-proven to work."

3. Ever-changing borrower requirements

Many borrowers are finding that they can't pin down just what they need to do to get their mortgages approved. Warren Greenlee, a broker with Re/Max at the Lake in Mooresville, N.C., says that a couple of years ago, "anybody with decent credit could get a loan for any size home. Now it is critical to have credit scores above 700, total debt ratios below 36%, a minimum of 20% down to avoid [private mortgage insurance] and good, stable employment. Unfortunately, a buyer can have all of these items fall into the current guidelines, only to have the guidelines change."

Greg Cook, a licensed California mortgage broker with the First Time Home Buyers Network, says that for the "'middle of the road' consumer, those without a large down payment and average to slightly above average credit scores, home financing has become a moving target."

4. Home appraisals are coming in low

Mortgage banker Darren Clark, of Villa Mortgage Inc. in Cincinnati, says, "Because of slow sales, which lead to few comparables, and the large amount of short sales, sheriff's sales and bank-owned sales, which are priced at a fraction of a dollar, houses are not appraising for the contract price.

"Part of this problem can be blamed on the government enacting [the Home Valuation Code of Conduct], which regulates the appraisal industry, and was an attempt to curtail fraud, but has turned into an unexpected hindrance on the real-estate market recovery."

The problem with the HVCC, Clark says, is that appraisals are now often completed by appraisers who are inexperienced and often unfamiliar with the markets they are working in, resulting in inaccurate appraisals and unnecessarily rejected loan applications.

5. Fewer opportunities for small business owners and independent contractors

"Congress recently introduced legislation that would make 'liar loans' illegal," Cook says. "Liar loans" are another term for low- or no-documentation loans. As the name implies, some borrowers have used these loans to deceive their way into a mortgage they didn't really qualify for. However, these loans are also a valuable tool for many honest workers who are not U.S. citizens or who are self-employed and therefore don't receive regular paycheck stubs or have a simple, straightforward way to prove their income to lenders.
"Typically, a business owner pays himself the minimum amount to avoid paying payroll taxes while reinvesting profits into his business. Banks will no longer make exceptions for circumstances like these and turn many loans down that previously would have been granted."

6. Condo purchases face additional tests

Aimee Renkes, a mortgage consultant with Wintrust Mortgage in Chicago, says, "Condo loans are much tougher these days as we have to approve the condo building in addition to the buyer. We are documenting cash reserves, owner occupancy rates, low delinquency rates on monthly assessments and more. In some markets, such as Chicago, this can be tough to overcome. Additionally, the [Federal Housing Administration] recently changed the condo approval method, which has further inhibited many buyers who only qualify for FHA loans."

The quest for homeownership

For worthy borrowers seeking to take advantage of today's low interest rates and relatively low home prices, having to jump through hoops that homebuyers just a few years ago didn't have to can seem mighty unfair. If there's any upside to the tight credit market, it's that we should see fewer foreclosures in the years ahead.

Home Purchase Applications Rise

2010-08-05T11:01:00.002-04:00

Applications to purchase homes rose 1.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.

The unadjusted purchase index also rose 1.5 percent, and it was up 7.1 percent compared to four weeks ago. Compared to the same week a year ago, it was down 33.7 percent. For the third straight week, government-backed loans, especially Federal Housing Administration loans, drove the increase, with government loan volume rising 3.4 percent compared to last week.

Mortgage rates were remarkably low:

30-year fixed-rate mortgages decreased to 4.60 percent from 4.69 percent.

15-year fixed-rate mortgages decreased to 4.03 percent from 4.12 percent.

1-year ARMs decreased to 7.10 percent from 7.15 percent.

Source: Mortgage Bankers Association (08/04/2010)

Small Is ‘In’, Formal Spaces ‘Out’ : Styled, Staged & Sold

2010-08-03T14:13:00.000-04:00

By Melissa Dittmann Tracey, REALTOR® Magazine

The sagging economy is influencing home design as more home owners favor smaller indoor and outdoor spaces that are often cheaper to maintain. Forget the formal spaces that are rarely used. Home owners nowadays don’t want to waste space and want to use every square inch of their home.

Home sizes and lots continue to decrease as preferences grow for low maintenance property improvements, according to the American Institute of Architects Home Design Trends Survey for the first quarter of 2010.

“We continue to move away from the McMansion chapter of residential design, with more demand for practicality throughout the home,” AIA Chief Economist Kermit Baker said in a public statement about the survey results. “There has been a drop off in the popularity of upscale property enhancements such as formal landscaping, decorative water features, tennis courts, and gazebos.”

Instead, slightly more home owners than in 2009 say they want open space layouts, informal spaces, a finished basement or attic, and a single-floor plan, according to the survey.

Large, expansive homes, once on top of many home owners’ wish-lists, are being replaced with a preference for more flexible, open and informal layouts that are more conducive for families, Baker said.

But how can you ensure that small space doesn’t feel too cramped? I recently spoke with Jennie Norris, president of the International Association of Home Staging Professionals, who had several tips on how you can Make Small Spaces Bigger. Read some of her tips to get ideas.

International Interest in U.S. Homeownership Increases, Realtors® Report

2010-07-08T12:27:00.000-04:00

Washington, July 07, 2010

International home buyers are increasingly attracted to property in the U.S., according to the National Association of Realtors®’ 2010 Profile of International Home Buying Activity. Several factors, including the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery, continue to drive international interest in owning a home in this country.

“While all real estate in the U.S. is local, the same is not true for property owners,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Ariz. “The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on Realtors® to help guide them through the complex process of buying property in the U.S. With expertise, knowledge and experience, Realtors® have a global perspective.”

The survey, released today, covers the period between April 1, 2009, and March 31, 2010. During that time foreign buyers, including those with residency outside the U.S. as well as recent immigrants and temporary visa holders, are estimated to have purchased $66 billion of U.S. residential property, or 7 percent of the residential market.

Slightly more than a quarter of Realtors®, 28 percent, reported working with at least one international client in the past year. This is a significant increase from the 2009 report, when 23 percent of Realtors® worked with foreign clients. Eighteen percent of all Realtors® were estimated to have completed at least one sale, compared to 12 percent last year.

“Several factors have contributed to an increase in international buyer interest in the U.S.,” said Golder. “A large majority of Realtors® report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value.”

International buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. With 23 percent of international buyers coming from Canada, the country has remained the largest buying group in the past three years. Foreign buyers from Mexico have been steadily increasing. In 2010 Mexico replaced the U.K. as the second largest buying group with 10 percent of buyers. Buyers from the U.K. decreased from 10.5 percent in 2009 to nine percent in 2010. Eight percent of recent buyers came from China/Hong Kong.

Two factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers while the East Coast draws Europeans. The West Coast brings Asian buyers and the Southwest attracts Mexicans.

International buyers were reported in 39 states in 2010, but a slight majority of the total buyers are concentrated in Florida, California, Arizona and Texas. These four states account for 53 percent of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.

The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009’s median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median market price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16 percent of the total international purchases were for homes priced at more than $500,000. According to Realtors®, this was because international buyers are typically looking for a second home.

A majority of international buyers, 66 percent, purchased single-family detached homes. However, more international buyers purchased a condo than did their U.S. counterparts, at 23 percent and 7 percent, respectively. Only 44 percent of international buyers used a mortgage to pay for their home, compared to 92 percent of domestic buyers. Fifty-five percent of foreign buyers paid all cash. Realtors® reported that a majority of international buyers use all cash because of the difficulty in establishing international credit in the U.S. Over one-third, 34 percent, of potential foreign buyers was unable to complete transactions because of financing problems in the U.S.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. News releases are posted in the Web site’s “News Media” section in the NAR Media Center.

8 Quick Fixes to Increase Value

2010-06-22T11:57:00.000-04:00

To attract buyers, sellers must up the ante to convince them that their property offers what many want most top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special — such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting — organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, ABR, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners’ Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas

Housing Starts Increase, Building Permits Decrease - RealEstate.com

2010-06-09T13:54:00.000-04:00

Housing Starts Increase, Building Permits Decrease - RealEstate.com

Construction Rises as Tax Credit Fuels Demand for New Homes - RealEstate.com

2010-06-09T13:51:00.000-04:00

Construction Rises as Tax Credit Fuels Demand for New Homes - RealEstate.com

Care and maintenance of your deck

2010-06-09T13:43:00.000-04:00

Summer is once more upon us. We all enjoy spending time with friends and family on our decks. Before your next barbecue take a day to spruce up your deck. The time and money spent will be well worth it when you decide to sell your home. Click on this link for great information about deck maintenance.

Simple Tips for Better Home Showings

2010-05-14T09:21:00.002-04:00

In today's market buyers are more demanding than ever. In order to increase your chances to sell your home you must take into consideration many aspects. In addition to pricing, presentation is key to a successful listing. If you are thinking of selling your home, or if you already have your home in the market, this article is for you...

Home Affordable Foreclosure Alternatives Program (HAFA)

2010-04-19T16:26:00.001-04:00

The HAFA Mortgage Program HAFA - Home Affordable Foreclosure Alternatives

In light of the rising number of property foreclosures in the United States, the government has expanded the Home Affordable Modification Program (HAMP) to include provisions and incentives for servicers to allow short sales or deeds-in-lieu as positive options for eligible homeowners in default who wish to avoid foreclosure. The new program is called Home Affordable Foreclosure Alternatives (HAFA).

Participation in HAFA cannot save the homeowner from losing his or her property, but it can eliminate the effects of a foreclosure on the homeowner’s credit. Financial incentives for participation in the program include a $1,000 servicing bonus for lenders and a $1,500 relocation bonus for displaced homeowners.

HAFA is designed for homeowners who have applied to HAMP for assistance but have had no success with their loan modification program. To participate in HAFA, homeowners must still meet HAMP’s eligibility criteria (principal residence, first-lien mortgage, serious delinquency, unpaid balance under $729,750, and a mortgage payment over 31 percent of gross income).

Click here for complete article: More on HAFA

NEW GOVERNMENT PROGRAM PUSHES THE SHORT SALE!

2010-04-09T13:02:00.001-04:00

Spring Greetings!

We am excited to share news about a new government program that went into affect on April 5th that will expedite the now arduous process of selling a home with a “short sale”. This program compliments a program that the government put in place a couple of years ago called the Housing Affordable Modification Program, or HAMP. This was the bail-out program where the government sent a lot of money to the banks with the intention of that money being used by the banks to help home owners modify their loans so they could afford their payment and not loose their homes. Well, we all know what a flop that was. Seems like not much of the bail-out money actually reached the home owners. The new program, Home Affordable Foreclosure Alternative or HAFA, has been put in place to expedite the short sale process for the seller who is not qualified for a loan modification and must sell a home that is not worth what he/she owes and thus must ask the lender to accept less than what they owe. Under the old system, I would list a home for a seller who must sell as a short sale. We then get a sales contract at true market value for the home and we submit it to the seller’s lender for approval of the short sale…but nothing happens! Months go by with no answer from the bank. The short sales that are getting lender approval and closing are taking 3 to 6 months to close. Not many buyers will wait that long!
Here are the main bullet points of the HAFA program:

Seller does not qualify for a modification (no job, not enough income for any modification that can be done, or must leave the area for employment are a few examples).

Banks who are in this program (they are signing up in droves) must order an appraisal when the seller/borrower applies for a short sale. The home can then be listed by a Realtor at a price and terms that are pre-approved by the seller’s lender.

Standard forms, processes, timelines, and deadlines are used that all parties must adhere to. The most important timeline is that the bank must respond within 10 business days of receipt of the sales contract!!!

There are financial incentives for the seller ($3000 to help with moving expenses), the loan servicer ($1500), the investor ($2000 for sharing the proceeds with any junior lien holder), and the junior lien holder (up to $6000) for cooperation to remove their lien and let the sale of the property close.

Sellers are FULLY RELEASED from future liability for the primary or first mortgage “short” debt.

Requires all servicers participating in HAMP to implement HAFA, subject to investor guidelines and policies.
We feel that the new HAFA program will be huge in helping us get short sale properties sold, therefore far fewer properties will go to foreclosure. It is a win/win for everyone. The bank looses much less money, the seller’s credit does not get trashed as badly and he/she can get on with life, and because fewer homes go to foreclosure, homes will maintain and even increase in value.

If you want more detailed info on HAFA, go to http://www.hafaprogram.com/ or give us a call with your questions. We are learning more about HAFA every day but we are still very much in the learning curve. If we don’t have the answer to your question we will find the answer. As always, we want to remain your resource for any questions or concerns you have about real estate!

REAL ESTATE ONE HAS SOMETHING TO BRAG ABOUT!

2010-03-15T09:03:00.000-04:00

Dear All,

We won a really great award last week, a tribute to all of your collective efforts. As you know we are a member of The Leading Real Estate Companies of the World, the largest broker network in the country (larger than any franchise system - Re/Max's numbers only compare to the larger franchises). It is a prestigious national and international network of the largest brokers in the country representing about 1/3 of all real estate transactions. Last week at their annual convention, we received the first ever Most Innovative Brokerage award for our efforts in providing the strongest current market education and the most creative property marketing!

In addition, John Adams was once again Southeast Michigan's largest FHA purchase lender and our web sites continued to rank #1 according to the February Hitwise rankings!

No one in our market and few, if any, across the country have marketing that is as strong and a better prepared sales force.

You are all wonderful!!

Dan Elsea

President - Brokerage Services

Real Estate One Family of Companies

danelsea@realestateone.com

Home Landscaping Ideas and the Real Estate Market

2010-03-10T15:53:00.002-05:00

How to Negotiate a Loan Modification

2010-03-08T16:00:00.002-05:00

2010 Assesment Information-Washtenaw County

2010-02-10T10:20:00.002-05:00

Click on this link for Washtenaw County Tax Assesment Information

Mortgage Foreclosure Prevention

2010-02-10T10:09:00.000-05:00

Please click on the link above for helpful information on Foreclosure help in Washtenaw County

2010-02-10T10:05:00.000-05:00

December Planning Commission Meeting-New State Law Changes to the Homestead Exemption

New State Law Changes to the Homestead Exemption

PA 624 has expanded the number of years the local unit can go back to correct a Homestead Exemption (Now Principal Residence Exemption). The local unit may now correct for the current year and 3 years prior.

PA 140 has changed the name of the Homestead Exemption to the “Principal Residence Exemption”. The change will avoid the confusion between the Homestead Exemption and the Homestead Property Tax Credit, that can be claimed against the Michigan Income Tax. Tax status day for the Principal Residence Exemption is now changed back to May 1st. You must own and occupy your property by May 1st of the current year to receive the Principal Residence Exemption for that year. Property owners with existing exemptions will not be required to file another affidavit to retain the exemption.

PA105 enhances the Department of Treasury’s auditing of exemptions wrongfully filed. This act also provides additional authority to local units, County Treasurers, or Equalization Departments to audit and deny these wrongfully filed exemptions. We may deny these exemptions for the current and 3 prior years. Interest on the taxes not paid because of a wrongfully claimed homestead exemption is 1.25% per month simple interest from the date the taxes originally would have been subject to interest or penalty had the exemption not been claimed. In addition penalties computed from that date are added to the taxes.

For answers to commonly ask questions about your Principal Residence Exemption please follow the following www.michigan.gov/documents/2856_11014_7.pdf

WHY USE A REALTOR?

2010-01-21T10:27:00.000-05:00

Why Use a REALTOR®?

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Original article published by:
REALTOR.com® is the official site of the National Association of REALTORS® and is operated by Move, Inc.

2009-12-08T13:06:00.001-05:00

Our holiday wish for you

As we approach the holiday season and another year's end; we take a momement to reflect on the year past.
We at Real Estate One-Dexter would like to take this opportunity to thank your for your business & your continuing support. These have been difficult times for so many and your loyalty to our company have made it possible for us to continue to provide you with excellent service thru 2009.
We look forward to the coming year with positive attitud and the hope that things will continue to improve for all.
It is our desire to wish you and your loved ones a wonderful holiday season & a prosperous New Year filled with love, health and all things good.

From our family to yours.... Happy Holidays!

2009-11-06T14:46:00.000-05:00

Tax break for buying a home

The Tax Credit has passed the Senate and the House! It is now going to the President for his signature.

The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.

The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.

The credit would be available only for the purchase of principal residences priced at $800,000 or less.

The bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference."

The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.

Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.

By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.

"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.

The credit, however, has also posed many problems. Critics say it's a waste of money because most of those claiming the credit would have bought homes anyway.

It's also been the target of fraud. Some 74,000 people claimed more than $500 million in credits even though they may not be first-time homeowners, according to Treasury officials. And more than 580 children, including some as young as 4-years-old, have claimed the credit.

"Some key controls were missing to prevent an individual from erroneously or fraudulently claiming the credit and receiving an erroneous refund of up to $8,000," said J. Russell George, Treasury inspector general for tax administration, before a House subcommittee last month.

Larry Bsharah, Sales Manager

John Adams Mortgage/Insurance One Agency

cell-313-218-0317

fax-248-263-0083

FAQ about Foreclosures and HUD Homes

2009-10-09T10:09:00.000-04:00

As the fall sets in and the year comes to a close, the First Time Homebuyer Tax Credit is also winding down. To take advantage of the credit you must get your home under contract within the next few weeks. Many buyers are finding themselves in a position where a foreclosure is the home of choice, even if that was not the original intention. Here are some frequently asked questions and answers about foreclosures that may be helpful in this crunch-time...

Q: What does "REO" mean?

A: Real Estate Owned. It's the term the banks use to identify their foreclosure properties. These properties are also considered distressed properties.

Q: How is a HUD property different from any other foreclosure?

A: HUD homes are FHA-insured loan foreclosures. The government owns them. The properties are classified as "insured" or "uninsured". Those that are insured are in good repair and FHA will insure a new loan for a new buyer for the home. Uninsured properties are typically fixer-uppers, and the buyer will be responsible for his or her own financing. Find out more on their website at www.hud.gov.

Q: What are some general guidelines for your market?

A: Many of the properties that are listed require an earnest money deposit of $1000 and are sold "as is". Many REO properties will sell for cash or with a variety of financing including FHA, VA, and conventional financing. One should remember that many times an REO property will be in a somewhat distressed condition.

Q: How are foreclosure properties identified on the MLS?

A: Certain MLS systems have a selection box on their profile form for bank-owned property and others do not. They are listed just like any other property. The best way to find them is by working with a real estate broker who specializes in this kind of home, or by searching the web. Search available listings through www.ourforeclosurehomes.com.

Q: How will the bank determine the selling price? Will banks accept less?

A: When negotiating with asset managers at a bank for the purchase of a foreclosure, they are considered professional sellers. An asset manager will work hard before a property is ever listed to determine fair market value. They order appraisals and hire a broker to advise them about the property's condition and value. Then, they price them accordingly and may or may not accept less.

Q: Will the banks repair the properties that are distressed?

A: Sometimes. The asset manager in charge of the property will confer with his broker prior to listing it to determine if it is a good candidate for repair or rehab. He will then proceed with a marketing strategy - either "as-is" or "repaired". The as-is properties are priced much lower, and the bank typically does not make repairs for these. They feel any repairs should be the responsibility of the buyer since the property's price is already discounted.

If you have any further question, please contact us and we will gladly assist you.

2009-10-09T09:56:00.002-04:00

Overlooked FHA Loan Ideal for Foreclosure Buyers

Peter G. Miller

Hidden away in the deep recesses of the federal government is a one-shot financing plan which will allow you to not only buy foreclosures but also to pay for repairs and upgrades.

The FHA's 203(k) program has been on the books for decades but over time it's been rarely used. That's changed recently, in part because the program is ideal for many foreclosure buyers.

How It Works

With the 203(k) program you get financing to purchase or refinance an existing home (it has to be at least a year old) plus additional dollars to fix it. Since the government doesn't want you to take that extra money and just go to Vegas, it provides the construction money in draws as the repair work is completed after closing.

This program, of course, works perfectly for foreclosure buyers because it covers both the cost of acquisition as well as the expenses that may be required to improve the property's condition.

Unfortunately, the 203(k) plan does not work perfectly for everyone.

Details

In basic terms there are three groups of foreclosure buyers: Those who want residential property for themselves, those looking for investment real estate and those who want both. Two of these three groups are possible users of the 203(k) program.

Yes, you can use 203(k) financing to pur chase a home which you will use as a personal residence.

Yes, you can use 203(k) financing to purchase a home with one to four units, provided that you physically occupy one of the units as your personal residence.

No, you cannot use a 203(k) to acquire or refinance a pure investment property, one you do not use as a personal residence. Investors have been banned from the program since 1996.

Why would you want FHA 203(k) financing?

Those after-closing draws and inspections represent additional work for lenders, thus you can expect to pay somewhat higher fees. That said, the 203(k) program is still a good deal because it's far cheaper to get acquisition and construction money in one loan rather than two. This is because there's a single settlement and thus only one set of closing costs, one set of taxes, one origination fee, etc.

The 203(k) program also comes with attractive terms. For instance, HUD says you can get financing equal to the "as-is" value or the purchase price of the property before rehabilitation, whichever is less, plus the estimated cost of rehabilitation. Alternatively, you can get a loan equal to 110 percent of the "after-improved" value of the property.

Lastly, the 203(k) program is an FHA loan. That means no prepayment penalties and no surprise rate increases. You'll need to fully document income, debts and assets, but that's a low barrie r for anyone who pays taxes and has financial records.

Limits

To come up with the right loan amount you need to know the value of the property and you need to have a good sense of what the improvements will cost. Not all improvements can be financed under the program and the maximum available for repairs in $35,000.

“Luxury items and improvements are not eligible as a cost rehabilitation,” says HUD. “However, the homeowner can use the 203(k) program to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements. All health, safety and energy conservation items must be addressed prior to completing general home improvements.”

Bring Back Investors

In 1996, when investors were banned from the program, HUD explained that its “restrictions are in response to audit findings issued by the Office of the Inspector General and are in effect until further notice.”

“A lot of things have changed in 13 years,” said Jim Saccacio, chairman and CEO at RealtyTrac.com, the nation's leading source of foreclosure listings and data. “One of the most important is this: We're overwhelmed with a vast inventory of foreclosed homes. It is this inventory which makes it impossible for local home values to rise. We need to get more buy ers into the marketplace and for this reason HUD's investor restrictions need to be reconsidered.”

Why should HUD open the 203(k) program so investors can pick up foreclosed properties? One very good reason is to reduce HUD's overall marketplace risk.

HUD has insured loans for millions of properties. Anything which reduces the foreclosure inventory can help increase the value of all properties, including those with FHA insured loans. Allowing more investors into the market generally increases demand and hopefully stabilizes or even grows local home prices. In the event of foreclosure HUD benefits because with higher market values insurance claims will be smaller.

In other words, the reason to broaden the 203(k) program is not because HUD suddenly has a warm tingly feeling when investors need mortgage insurance, rather the reason is self-interest: HUD can cut its costs and liabilities by getting more investors into the marketplace.

“Ten years ago, certain lenders and nonprofits stigmatized the 203(k) program by using the program for fraudulent purposes,” says the Treasury Department in a just-issued report. Well, yes, certain lenders and nonprofits did just that — but investors are not lenders or nonprofits. We're blaming the wrong folks.

Rather than restrict an entire program to investors because of the misdeeds of a few lenders and nonprofits back at the dawn of t ime, why not do a better job underwriting loans? That could solve the creepy program of “stigmatized” loan applications. Or, why not restrict lenders and nonprofits since they — not investors — were responsible for the moratorium in the first place?

It's time that the 1996 investor “moratorium” comes to an end. Times have changed — and so should HUD.

For more information regarding 203(k) speak with local FHA lenders before considering a real estate purchase. Be sure to work with an experienced 203(k) lender, one who can help with the complexity of draws and inspections after closing. Also, if possible, get practical ideas and information from local borrowers who have recently used the 203(k) program.

____________________

Peter G. Miller is syndicated in more than 100 newspapers and operates the consumer real estate site, OurBroker.com.

2009-10-09T09:54:00.002-04:00

Press Releases

--------------------------------------------------------------------------------

FDIC Launches Foreclosure Prevention Initiative

FOR IMMEDIATE RELEASE

September 16, 2009 Media Contact:

David Barr (202) 898-6992

The Federal Deposit Insurance Corporation (FDIC) today announced that it is releasing a free tool kit of information that will help borrowers, community stakeholders and the banking industry avoid unnecessary foreclosures and stop foreclosure "rescue" scams that promise false hope to consumers at risk of losing their homes.

The tool kit includes critical information to help borrowers know who to contact and what documents they need to have available to apply for a loan modification that could save their home from foreclosure. This tool kit also describes the warning signs of potential foreclosure "rescue" scams and how consumers, community stakeholders, and bankers can report scammers and prevent fraud. The public can access the free tool kit at http://www.FDIC.gov/foreclosureprevention. To ensure this inform ation is widely available, the FDIC is conducting outreach to community-based organizations and the banking industry, and furnishing a referral service to help consumers identify sources of legitimate help and report fraud to the appropriate law enforcement agencies.

"It is vitally important that consumers and bankers know all of the resources available to help prevent unnecessary foreclosures. The tool kit released today, along with our outreach, should help consumers know how to get a loan modification when they need one. While reaching out a helping hand, we must also be on guard for those who would prey on consumers who are facing foreclosure," said FDIC Chairman Sheila C. Bair. "Everyone with a stake in this issue – from community leaders to those with a neighbor, friend or family member facing hardship – must take responsibility for reporting questionable activity and directing consumers to legitimate sources for assistance." Raising consumers' awareness of foreclosure "rescue" scams will give borrowers more confidence in knowing they are working with legitimate counselors and servicers to obtain a loan modification that could help them avoid foreclosure.

The FDIC's foreclosure prevention tool kit includes:

Is Foreclosure Knocking at Your Door? brochure (available online and in print), which encourages consumers facing financing difficulties to contact their servicer, apply for a loan modification, and talk to a counselor.

Beware of Foreclosure Rescue Scams b rochure (available online and in print), which provides information on common scams, tips for detecting fraudulent deals, and resources for reporting criminal activity.

Spring 2009 edition of FDIC Consumer News, which features advice for consumers on avoiding foreclosure rescue and loan modification schemes.

Your Own Home module of the FDIC's Money Smart curriculum, which offers tips and advice on avoiding foreclosure with a loan modification, preventing foreclosure "rescue" scams and providing legitimate sources of foreclosure prevention assistance.

The tool kit and other helpful resources are available on the FDIC's foreclosure prevention Web page at www.fdic.gov/foreclosureprevention.

Also as part of this initiative, the FDIC is continuing to work with banks and community-based and consumer organizations to avoid foreclosure and stop foreclosure "rescue" scams, particularly in underserved communities. Consumers are encouraged to report questionable activities, including solicitations or offers, to their servicer and appropriate state and federal authorities, which may include the Federal Trade Commission and the appropriate state attorney general. Consumers who have difficulty finding contact information for these officials or their servicer may receive a referral by calling the FDIC Call Center at 1-877-ASK-FDIC (1-877-275-3342) or visiting www.fdic.gov. The FDIC has reminded institutions to act promptly and report potential ly fraudulent or improper activities relating to mortgage lending (see Financial Institution Letter 54-2009, dated September 16, 2009).

###

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,246 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-171-2009

Tips for Selling Your Home in Winter

2009-09-17T10:49:00.000-04:00

Tips for Selling Your Home in Winter

Real Estate Auctions - 21 Things a Home Buyer Should Know

2009-09-17T10:42:00.000-04:00

Real Estate Auctions - 21 Things a Home Buyer Should Know

How to Lower Your Home Insurance Costs

2009-09-17T10:21:00.000-04:00

How to Lower Your Home Insurance Costs

2009-08-05T13:09:00.002-04:00

Signs that You're Already a Victim of ID Theft

A creditor informs you of an application for credit in our name and Social Security number that you never made, or that you've been approved or denied credit for which you never applied.
You receive statements or bills for any type of credit, utility or other accounts in your name and address for which you never applied.
A collection agency contacts you to collect on delinquent accounts that you never opened and never authorized.
Unfamiliar charges on accounts statements, including your bank accounts, credit cards, loans, mortgage, calling card, utilities, other established credit or billing account statements.
Your bank send you an automatic insufficient funds notice or an overdraft funds transfer notice when you should have sufficient funds in your account for all debits, checks and payments you've made.
An unusual or unexplained notice from a government agency, or state, county or federal tax notices may indicate your information was used to commit fraud involving a government agency, a federal or state assistance program or taxes.
A visit from a police officer involving a criminal investigation or a warrant for your arrest for something you didn't do.
Service of summons to appear in court or lawsuits for actions you know nothing about.
The amount of mail you typically receive is suddenly significantly reduced without explanation, or specific bills, documents or account statements are not received.
An automatic credit report alert or your regular annual check of your credit reports informs you of recent negative changes in your credit report, unfamiliar account or unexpected credit activity.

Identifying Unauthorized Account Access and Mail Theft

Check your credit reports annually to identify problems, errors or possible identity theft.
Check all of your credit card and bank statements monthly or more often for any errors or unauthorized purchases. Even if you still have your card, your account number may have been stolen.
You don't have to wait for your monthly statements to come in the mail. You can check your financial account statements more often online or via automated phone customer services.
Check all of your bills and receipts including utility bills, were authorized by you.
Look for monthly billing or other account statements, credit card replacements or other expected communications from your creditors or bank, Make a not to yourself about when credit or debit card replacements should arrive.

2009-06-19T09:11:00.004-04:00

MICHIGAN TRIES TO SLOW FORECLOSURES WITH NEW LAW

Three new laws make foreclosurers tougher on lenders to force them to do more loan modifications.

June 18, 2009-- Detroit MI- On May 20th, Governor Granholm signed new laws into effect that will put more pressure on lenders to work out loan modifcations as opposed to just foreclosing.

The new lasw, PA29, PA30 & PA31, go into effect July 5th and force lenders to perform several addition steps before foreclosing. Interesting that the effective date fall right after Indepence Day.

The new law only apply to foreclosures started after July 5th and only on real estate that is primary residence of a mortage borrower. The laws also expire in two years. The state legislators appear to be pretty optimistic the housing crisis will be over by then. More likely, there won't be anyone with a mortage that hasn't been foreclosed on or had their mortgage modified by then.

To read the complete story click here: http://seekingalpha.com/instablog/343268-loan-survivor/9022-michigan-tries-to-slow-foreclosures-with-new-laws

2009-06-09T13:23:00.006-04:00

EXCLUSIVE NEW PROGRAM FOR REAL ESTATE ONE CUSTOMERS!

AVAILABLE ONLY THRU JOHN ADAMS MORTGAGE!

JOB LOSS PROTECTION

The John Adams Mortgage Company Home Mortgage Protection Program is an optional, seller funded mortgage protection program that helps home owners with monthly mortgage payments
if they experience a loss of employment.

The Home Mortgage Protection Program is part of the HELP (Home owner Education and Loss Protection) program administered by the Rainy Day Foundation.
This program is provided exclusively by John Adams Mortgage Company. To qualify, the buyer must obtain their mortgage financing through John Adams Mortgage.

* Buyer will receive an information packet with complete details of program, including eligibility and how to file a claim within 45 days of closing.

About the Rainy Day Foundation

The Rainy Day Foundation is a nonprofit 501 (c) 3 organization whose mission is to assist individuals in maintaining home ownership.

The Job Loss Protection Program is part of the HELP Program, administered by the Rainy Day Foundation, which is intended to help buyers navigate the challenges of home ownership.

The HELP Program provides voluntary financial and budget counseling to buyers via telephone and e-mail for the first 24 months following closing, as well as emergency counseling and grants to assist home owners during times of financial hardship.

Program Overview

Provides up to 6 months of mortgage payments during the first 24 months (excluding vesting period) from date of closing if the borrower or co borrower becomes involuntarily unemployed.

Coverage up to $1,800 per month.

Only properties listed for sale by the Real Estate One Family of Companies are eligible for coverage under this program. Seller may elect not to participate

Cost of program is $550, payable by the seller at closing if buyer accepts the program

Program is offered at no cost to the buyer and cannot be funded by the buyer

Buyer will receive an information packet with complete details of program coverage within 45 days of closing

Eligibility
Must be employed full-time (minimum of 30 hours per week) at time of closing

Cannot be self-employed, independent contractor or active duty military

Cannot own greater than 10% interest in his/her employer’s business

Must be between the ages of 18 and 66 and reside in the U.S.

Must be eligible for state unemployment benefits

Program applies to primary residence, secondary homes and single unit investment properties

Buyer Advantages
Buyer can purchase home with greater confidence

Program applies if borrower or co borrower experiences involuntary loss of employment (assuming eligibility criteria are met)

22 months (24 months minus vesting period) of coverage; can be used for multiple job losses during period for up to 6 months of payments (assuming criteria are met)

Homes featuring “Job Loss Protection” program easily identified on our website

Buyer may receive counseling and resources at no cost through HELP program

Details*

Coverage Period
22 months (24 months minus vesting period) from the closing date of the mortgage

Maximum Benefit
The lesser of the actual mortgage payment (PITI) or $1,800 per month

Benefit Period
Up to a maximum of six payments during the 22-month (24 months minus vesting period) coverage term

Vesting Period
60 days from mortgage closing date; no coverage if unemployment begins during vesting period

Waiting Period
30 days from first date of unemployment

Contribution Clause
For joint mortgagors, benefit amount will be based on the percentage the unemployed person’s income is to total qualifying income at the time of mortgage closing

Conditions
Claimant must qualify for state unemployment benefits

Claims payments cease immediately upon re-employment

In the event of subsequent unemployment, a new 30-day waiting period applies

Exclusions
Voluntary unemployment

Disability or medical (mental or physical)

Reasons listed for denial of unemployment benefits

Borrowers who are self-employed or are aware of a pending layoff

Strike or lockout

* Buyer will receive an information packet with
complete details of program, including eligibility
and how to file a claim within 45 days of closing.

2009-05-27T15:53:00.000-04:00

Government Real Estate Auctions

You've no doubt seen the commercials in which a man is yelling about government-seized property auctions. Does it seem kind of sleazy, kind of shady? Like maybe you're taking advantage of the disadvantaged? Au contraire! A real estate auction can be a great way to get into a house. In a real estate auction, the seller is locked in to selling. There's no backing out at the last second. You'll probably pay a fair market price - it's a rare for auction houses to be overpriced. In an auction setting, you may have the choice of several properties at the same time. Weeks-long negotiations are eliminated. Purchasing and closing dates are pretty much set in stone, so there's no last minute changes or contingencies.
Before an auction, there are several ways to prepare:-Attend an open house to see what condition the property is in. -Go over with a fine-tooth comb the property information provided by the auctioneer, including the sales contract.-Make sure you know exactly what is included in the sale and what's excluded.-Talk to a real estate agent and an attorney who specialize in auction sales.
There are specialized procedures involved with real estate auctions. According to the U.S. Department of the Treasury, sale participants must register to bid during the specified registration time for the sale. Bring a photo ID and a cashier's check deposit to register and receive your bidder number. A bidder registration form is available for download on the U.S. Treasury Department web site at http://www.ustreas.gov/auctions/treasury/rp/images/bidderregform.pdf.
This form can be printed out and completed prior to the auction. You do not need to mail or fax the completed form, just bring it to the auction to register. Forms will also be available at the auction. You should read and understand the Terms of Sale before you bid. Sales personnel at the auction site can answer any questions you may have.
Typically, a wide variety of real property is available, including homes, condominiums, commercial buildings, operating businesses and vacant land. The Treasury Department strongly recommends that you attend open houses/inspections. These open houses/inspections are the only opportunity you have to get answers to your questions, since property is sold "as is" and all sales are final. Property may not be available for inspection the day of the sale. Failure on your part to inspect property won't constitute cause for cancellation of a sale. Consider yourself warned.

2009-05-27T15:16:00.000-04:00

Get To Know Your New Neighborhood

If you're moving, one thing you may not have thought about is getting to know your new neighborhood. This is especially important if you have children. To make it easier, below are some tips on how to get to know your new neighborhood, making the transition easier and happier for everyone. If you're moving to a new city or state: Before you even get there, call the local chamber of commerce and request a packet of area information. Most are happy to oblige, getting the word out about their fair city. You can learn a lot from this material, including local history, the businesses in town, events, etc. Purchase a detailed map of the city. Sit down with your kids and look it over with them. Call your children's schools to request a tour of the facilities before the kids have to start school. Be sure to locate your children's classrooms, the cafeteria, library, gym and bathrooms. After moving in: As a family, drive around the area and find parks, the post office, the closest grocery store, a favorite chain restaurant, mall, bank, hospital, swimming pool, etc. Again as a family, walk the neighborhood. Make a map of the neighborhood, marking down street names, bike paths, parks, tennis courts, etc. Don't wait for the neighbors to come introduce themselves. On the weekend, why not whip up a batch of cookies and go door to door, introducing yourself and distributing goodies. l Get a subscription to the community newspaper. These little papers usually list neighborhood events, give discount coupons to local businesses and other tidbits you'll find very useful. Go to the library, where your kids can sign up for reading contests, book clubs and check out books, videos and magazines that will keep them occupied while you're trying to get the new house whipped into shape. Go to the local recreation center. Again, you can sign your kids up for classes in everything from drama to art to rock climbing and more. They'll make fast friends and have fun learning a new skill or polishing an existing one. Participate in your new community. Join your homeowners association and attend the meetings. Join the PTA. Volunteer at the local food bank. Your new neighborhood will feel like home in no time.

2009-05-05T14:49:00.002-04:00

What is a Teaser Rate?
In a tough housing market, the best thing you can do is thoroughly investigate all of your options. Do your research. Ask a lot of questions. If your credit is less than stellar, you may be thinking of getting an ARM with a low “teaser” rate. Before you do, be sure you know all the facts about teaser rates and what they can mean to your financial health. What is a teaser rate? It is a low interest rate that applies at the start of the loan for a specified period of time, not the entire term of the loan. Questions you should ask regarding these types of loan:
How long is the teaser rate in effect? Is it a fully amortizing rate -- in other words, is all interest being paid during the teaser-rate period? (If it’s not, you’ll have much larger monthly payments at the end of the teaserrate period, and you’ll have a much harder time selling your house because the mortgage balance will be larger!) Is this an interest-only mortgage? Are the low up-front costs going to outweigh the possibility of foreclosure? In addition to teaser rates for mortgages, there are also credit card teaser rates, and is it a good idea to transfer balances from high-interest cards to those with low teaser
rates? As you’re probably aware, each time you apply for a new credit card, the credit company accesses your credit reports, and each time your reports are accessed, it shows up on your credit reports, and not favorably, either. Your score goes down every time it is accessed when applying for new credit. It’s
much better for your score if you keep long-term relationships with just a few creditors than changing your card each time the teaser rate expires.
You also need to know that credit card teaser rates are fickle, fragile things. Make a payment late, and guess what? You go from 0% interest to 36% in a heartbeat. All this is in the fine print that few consumers ever take the time to read. They don’t read past “0% interest!” You’ll also be interested to know what “late” actually means to the credit card companies. You don’t just have to have your payment there by a certain date. It has to be there by a certain time on that date. So if the mail arrives late that day, and your envelope is opened three minutes after the due hour, it’s considered late. So always, always make sure your payments get to their destination early, not just on time. The point is: be wary of teaser rates. Don’t gamble away your future betting that your income will be higher down the road. Get your payments in early. Call and ask for a lower rate.

2009-05-05T14:42:00.002-04:00

Radon Gas and You
Radon is a cancer-causing radioactive gas that you can’t see,smell or taste. According to the Surgeon General, radon is the second leading cause of lung cancer in the United States. And if you’re a smoker, your chances of contracting lung cancer are even higher if your home has high levels of radon.
Radon gas has been found in homes all over the U.S. EPA recommends that you know what the indoor radon level is in any home you consider buying. Ask the seller for their radon test results. If the home has a radon-reduction system, ask
the seller for information they have about the system. If the home has not yet been tested, you should have the house tested. If you are having a new home built, there are features that can be incorporated into your home during construction to reduce radon levels. If you are thinking of buying a home, you may decide to accept an earlier test result from the seller, or ask the seller for a new test to be conducted by a qualified radon tester. Before you accept the seller's test, you should determine: The results of previous testing. Who conducted the previous test: the homeowner, a radon professional, or some other person. Where in the home the previous test was taken, especially
if you may plan to live in a lower level of the home. For example, the test may have been taken on the first floor. However, if you want to use the basement as living space, test there. What, if any, structural changes, alterations, or changes in the heating, ventilation, and air conditioning (HVAC) system have been made to the house since the test was done. Such changes may affect radon levels. If you accept the seller's test, make sure that the test followed the Radon Testing Checklist. If you decide that a new test is needed, discuss it with the seller as soon as possible. If you decide to use a qualified radon tester, check with your state radon office to see if they maintain a list of radon testing companies.
If the home has not yet been tested for radon, make sure that a radon test is done as soon as possible. Consider including provisions in the contract specifying:
1. Where the test will be located?
2. Who should conduct the test?
3. What type of test to do?
4. When to do the test?
5. How the seller and the buyer will share the test results and
test costs (if necessary)?
6. When radon mitigation measures will be taken and who will
pay for them?

2009-04-08T09:01:00.001-04:00

Top 10 Reasons to Hire a Real Estate Agent
By Elizabeth Weintraub, About.com

With so much information readily available online, clients sometimes ask me, "Why should we hire a real estate agent?" They wonder, and rightfully so, if they couldn't buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a a real estate agent. Some do OK, many don't. So if you've wondered the same thing, here are 10 reasons why you might want to consider hiring a professional real estate agent.

1. Education & Experience
You don't need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.

2. Agents are Buffers
Agents take the spam out of your property showings and visits. If you're a buyer of new homes, your agent will whip out her sword and keep the builder's agents at bay, preventing them from biting or nipping at your heels. If you're a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge
Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information
Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It's part of their job description. Good agents are not messengers, delivering buyer's offers to sellers and vice versa. They are professionals who are trained to present their client's case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork
One-page deposit receipts were prevalent in the early 1970s. Today's purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

9. Answer Questions After Closing
Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don't leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business
The basis for an agent's success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

2009-04-01T16:29:00.004-04:00

Renters Lose Edge on Homeowners
Cost Gap Returns to Historical Norms in Some Markets as House Prices Drop

By NICK TIMIRAOS

The relative cost of owning versus renting is swinging back in favor of homeownership in some U.S. markets, buoyed by several quarters of sharp declines in home prices.
At the height of the housing boom, as home prices surged, demand for rentals started to rise as the gap between owning and renting widened significantly. Even after the housing market soured, apartment demand grew as former homeowners became renters, allowing landlords to push healthy rent increases.
Now, after two years of rapid home-price depreciation, the relationship between the cost of rental payments versus after-tax mortgage payments is tilting toward ownership in a number of metropolitan areas.

To read complete article click here: http://online.wsj.com/article/SB123552129423664663.html#

2009-03-19T15:26:00.000-04:00

Curb Appeal Matters Now More Than Ever, Say Realtors

RISMEDIA, Dec. 4, 2008

For the second year in a row, Realtors® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.

On a national level, wood deck additions and all types of siding replacements - upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl - returned more than 80% of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7% of costs, followed by wood decks at 81.8%, midrange vinyl siding at 80.7%, and upscale foam-backed vinyl siding at 80.4%.

“Because today’s buyers have much more to choose from in the way of inventory, any home for sale must make a positive first impression,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “As a trusted source for real estate information, Realtors® understand what attracts and motivates their buyer clients, which is why the results of this year’s Cost vs. Value report underscore the importance of curb appeal in the buyer’s eye.”

The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year. Data are grouped into nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 11th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR Magazine, as Realtors provided their insight into local markets and buyer home preferences within those markets.

In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis. All types of window replacements - upscale and midrange wood and upscale and mid scale vinyl - returned more than 76% of costs. A major midrange kitchen remodel returned 76.0% of project costs, while a minor midrange kitchen remodel returned 79.5% of costs.

On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4% on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6% of costs recouped, and a midrange basement remodel, at 72.7% of costs recouped.

As in last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4%, 56.6%, and 57.1%, respectively, of project costs.

Although most regions followed national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).

McMillan explained that the resale value of any given remodeling project depends on a variety of factors. “A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project,” he said. “That’s why it’s important to consult with professionals like Realtors in your area when you want to enhance the value of your home. Realtors see hundreds, if not thousands, of homes every year with their buyer clients and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.”

Results of the report are summarized in the December 2008 issue of REALTOR® Magazine. The issue also includes examples of actual remodeling projects that were less expensive than many of the report’s cost estimates. Full project descriptions, as well as national, regional and local project data for the 79 cities covered by the report will be posted at www.costvsvalue.com by December 5. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

For more information, visit www.realtor.org.

2009-03-19T15:19:00.001-04:00

Mich. Senate OKs $10K tax credit for homebuyers

By Associated Press

LANSING -- The Michigan Senate has approved a state income tax credit for people who buy a house in 2009 or 2010.
Homebuyers could claim a credit for 10 percent of the purchase price or $10,000, whichever is less.
The legislation won approval 36-0 Thursday and moves to the House.
The bill initially would have given homebuyers a tax credit for the difference between property taxes on a home before and after the sale. Democrats successfully argued that all homebuyers should get the same credit.
If approved, the state credit would apply to anyone who buys a primary residence between the time the law takes effect and the end of 2010. The federal stimulus package includes an $8,000 first-time homebuyer tax credit.

2009-03-11T14:28:00.003-04:00

Top 10 Seller Short Sale Questions
By Tim & Julie Harris

Number 10
I can’t make my house payments but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score…is a short sale right for me?Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder) it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9
If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?The mortgage insurance is not there for your protection, just the mortgage lender’s.

Number 8
Do I have to have my home ‘Approved’ by the lender prior to offering it for sale as a short sale?No. Technically speaking there is no such thing as being ‘Short Sale Approved’. The actual approval only happens with an accepted offer.

Number 7
I just missed a payment and I know I will miss more….how long does the foreclosure process take and is there time to do a short sale?

The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California its taking 6+ months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.

Number 6
Will I still have to pay property taxes if I do a short sale?
Property taxes will always have to be paid as part of any accepted short sale. Whether it’s you or the lender depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5
I owe more than my home is worth and I can’t make the payment, do I have to somehow qualify for a short sale?
The simple answer is NO. If someone can’t make their payment and they are otherwise insolvent they qualify for a short sale. Note: insolvent simply means their total debts are greater than their assets.

Number 4
Do I have to pay income taxes..I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me..the seller..is this true?It WAS true, now it’s now. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3
How do you, my listing agent get paid..who pays you commission?
The bank will pay the commission along with all the other usual closing costs.

Number 2
Do I have to miss a payment to do a Short Sale?No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holder.

2009-02-26T12:37:00.005-05:00

Ap Associate Press

New foreclosure defense: Prove I owe you

Homeowners demand lenders produce original documents-some can't

ZEPHRYRHILLS, Fla.- Kathy Lovelace lost her job and was about to lose her house, too. But then she made a seemingly simple request of the BANK: Show me the original mortgage paperwork.

And just like that, the foreclosure proceedings came to a standstill.

Lovelace and other homeowners around the country are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess.

Read Full Story: www/msnbc.msn.com/id/29242063/

2009-02-17T16:35:00.000-05:00

Citigroup, JPMorgan Chase among 8 lenders agreeing to stop foreclosures
Moratorium in place until March or the Obama administration announces a plan

Bloomberg News
February 14, 2009

Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and Wells Fargo & Co. agreed to suspend foreclosures while the Obama administration crafts a housing plan to modify mortgages for troubled borrowers.

Read full story

http://www.chicagotribune.com/business/chi-sat-halting-foreclosures-feb14,0,951226.story?track=rss

REAL ESTATE ONE

13,000 Tankless Water Heaters Recalled

Space Heater Safety: Make Sure Yours Hasn’t Been Recalled

Essential Heating System Maintenance

Keep Your Home Sale from Falling Apart

What Foreclosures Cost the Community

Prepping a Home for Sale: Simple Staging Tips for Inside and Out

What Could be Devaluing your Property?

9522 Huron River, Dexter $389,000

3600 Meadow View, Dexter $225,000

10770 Splitstone, Pinckney MI 48169 $269,900

The Real Estate Market is improving at last. Something to smile about...

4611 Inverness, Dexter

Relay For Life Event in Dexter

Home for Sale

Spring is in the Air for the Real Estate Market

Check out the latest addition to our listing inventory

Why 2011 May Be the End of the Housing Crash

Looking for good restaurants at affordable prices?

Low Costs and Spring Fever Expected to Spur Home Buyers

Overcoming Realtor hate | Inman News

Michigan Property Tax Explanation

Cheaper Homes Cost More to Build

Use the New Year to Build a Financial Fundation

11 Inexpensive, Simple Holiday Decor Ideas

Mortgage Interest Deduction: Do You Need It?

Economists Predict Growth in 2011 .

Crafty Ideas for Winter Curb Appeal

Bring Out the Best in Basements

NAR Home Buyer and Seller Survey Shows Value of Long-Term Home Ownership

What’s In, What’s Out With Home Design

Co-signing risks for first-time buyers | Inman News

Foreclosures hit post-bust peak in third quarter

Calls Mount For Foreclosure Moratorium, Investigations

Real Estate Market Update from the President of Real Estate One

Setting Clear Expectations Helps Create a Streamlined Short Sales Approach

Six New Hurdles for Home Financing

Home Purchase Applications Rise

Small Is ‘In’, Formal Spaces ‘Out’ : Styled, Staged & Sold

International Interest in U.S. Homeownership Increases, Realtors® Report

8 Quick Fixes to Increase Value

Housing Starts Increase, Building Permits Decrease - RealEstate.com

Construction Rises as Tax Credit Fuels Demand for New Homes - RealEstate.com

Care and maintenance of your deck

Simple Tips for Better Home Showings

Home Affordable Foreclosure Alternatives Program (HAFA)

NEW GOVERNMENT PROGRAM PUSHES THE SHORT SALE!

REAL ESTATE ONE HAS SOMETHING TO BRAG ABOUT!

Home Landscaping Ideas and the Real Estate Market

How to Negotiate a Loan Modification

2010 Assesment Information-Washtenaw County

Mortgage Foreclosure Prevention

WHY USE A REALTOR?

FAQ about Foreclosures and HUD Homes

Tips for Selling Your Home in Winter

Real Estate Auctions - 21 Things a Home Buyer Should Know

How to Lower Your Home Insurance Costs