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Filed under: News, Credit

It didn’t take long before the carnage in the hit house-party movie “Project X” spilled onto the real real estate market.

Thirteen teenagers are being questioned for their possible involvement in a wild house party that will cost the builder nearly $100,000 in repairs, reports KHOU in Houston, Texas.

“It’s devastating. This is a new home that was ready to sell,” said private investigator Mark Stephens, who was hired by the homebuilder to observe the property. Stephens estimates the home to be worth $500,000.

A tour of the once pristine, 4,000-square-foot-home today reveals gaping holes in the walls, heaps of broken glass and liquor bottles strewn across the property.

Stephens told KHOU that the night after the property was vandalized, he returned to the neighborhood in the hope of catching the culprits in the act. Just down the street, in another vacant home, he came upon a group of teenagers throwing another massive party.

Police took 13 teenagers into custody, with two minors being young enough to be released back to their parents.

Stephens said that when he asked the teens why they broke into the home, they simply said “Project X.”

Yet this isn’t the first time the riotous teen flick reportedly has inspired copycat revelry. Another party in Houston turned deadly after an unidentified teen was shot multiple times at an illegal party in another vacant home, ABC News reports. The party, which drew between 500 to 1,000 high school and college-age students, was shut down by police, but the gunman reportedly escaped on foot.

Idle Hands, Empty Homes

An underlying problem in these and other cases of home vandalism is the glut of vacant homes sitting idle on the market. As foreclosures have flooded local real estate inventories, vacant properties have attracted all manner of blight, lowering property values and putting more financial stress on already struggling neighborhoods.

And the vacancy problem could continue to rise. Despite a new report that shows a 13 percent drop in completed foreclosures in the first month of this year, as compared to January 2011, there are signs that foreclosures could soon rise. With the $25 billion mortgage settlement finally underway, experts expect foreclosure activity to increase through 2012, as banks begin to clear a massive backlog of disputed foreclosures. One in every 637 homes received a foreclosure filing in February, according to RealtyTrac.

In Houston, where both wild parties took place, one in every 689 homes received a foreclosure notice in February — up nearly 10 percent from the previous month.

Also see:
Renters Beware: Fraudsters Still Lurking on Craigslist
‘Home Alone’ House Sells for $1.6 Million

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More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

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Source: http://realestate.aol.com/blog/2012/03/15/project-x-copycat-revelers-allegedly-wreck-500-000-home/

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Filed under: Home Equity

Home values sank, the stock market plummeted, 401K plans were depleted, and today many of the nearly 40 million Americans in retirement are discovering they may have not been financially prepared for a doomsday scenario. One remedy many Baby Boomers, with their record-high level of home ownership, may not have considered is a home equity loan or home equity line of credit (HELOC). For more than half of all U.S. households, home equity — the

Home values sank, the stock market plummeted, 401K plans were depleted, and today many of the nearly 40 million Americans in retirement are discovering they may have not been financially prepared for a doomsday scenario. One remedy many Baby Boomers, with their record-high level of home ownership, may not have considered is a home equity loan or home equity line of credit (HELOC).

For more than half of all U.S. households, home equity — the value of a home minus the debt owned — accounts for at least 50 percent of net wealth, according to the Survey of Consumer Finances, published by the Federal Reserve. Statistics also reveal — according to an annual government report, A Profile of Older Americans — that the over-65 population is swelling and an increasing number of retirement-age Americans are being forced back to work. More money problems are on the way, with half of U.S. households in jeopardy of being able to sustain their lifestyle through retirement, says the Center for Retirement Research of Boston College.

Home equity loans were traditionally used has a last resort for retirees, but a growing number of seniors are tapping their home equity earlier, either as a financial buffer, to sustain income security, or to improve debt management.

How can retirement-age homeowners tap into their home equity in a responsible and fruitful way?

For retired Americans who have a small mortgage or no mortgage and low levels of debt, leveraging the equity in their home — either through a home equity loan or a second mortgage — is a way to free up immediate cash.

“It would be cheaper than taking out an unsecured loan, where the rates are generally higher,” said Clifton Thomas, a CPA in San Francisco, though he cautioned that this be determined on a case-by-case basis and is not a viable route if monthly payments cannot be covered.

Increased longevity has many over age 65 worrying that they may outlive their retirement resources. For those who do not have income from employer-sponsored pension plans, longterm financial security may be unusually challenging. Some financial planners recommend deferring Social Security payments and taking out a term home-equity loan or reverse mortgage to help fund expenses for a few years, when they will qualify for maximum Social Security benefits.

Another common fear of older Americans is having to spend their last years in a nursing home. But better overall health and the growth of community living has drastically reduced that risk. Today, most people would prefer to live in their homes for as long as they can. As a result, preserving the value of one’s home has become more important — and having a financial cushion helps older homeowners make repairs such as faulty furnaces and leaky roofs before they become more serious. A HELOC, which requires borrowers only to pay interest on the amount they use from the loan, is well-suited for this purpose.

As older Americans struggle to pay rising household expenses, their use of credit cards has expanded, according to the Survey of Consumer Finances. Today, nearly 50 percent of families aged 55 to 64 carry credit card debt. Debt consolidation may be a good way to fend off personal bankruptcy. Shifting credit card debt to a HELOC is a good way to lower monthly expenses, since interest rates for home equity debt are much lower than than those for credit cards.

For those seniors with existing mortgages, monthly payments make it hard to enjoy later life. In this case, a home equity loan or reverse mortgage can allow homeowners to defer monthly mortgage payments on a conventional mortgage.

Experts say that it’s never too late to make a financial plan that will access your current assets and expenditures, and project your future cash flow. Michael Gray, a CPA in San Jose, Calif., recommends that seniors hire a fee-only financial advisor rather than one who is commission-based, who may (or may not) benefit from clients moving money in and out of different investments.

For qualified homeowners, a home equity loan and a HELOC will likely be among the options recommended. As part of a responsible retirement plan, both may provide financial security that previously seemed unobtainable.

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Source: http://realestate.aol.com/blog/2010/12/09/home-equity-loan-a-good-option-for-cash-strapped-retirees/

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Filed under: News, Advice, Buying, Economy, Financing, Renting, Selling

Is it possible that the housing crisis is really just a problem caused by our state of mind, not the state of the economy? Is the thing stopping people from buying houses nothing more than their perceptions? Apparently, to some extent, yes.

We are having what, if economists talked like this, could be described as an irrational fear of commitment.

The facts: The recession is considered over, the country’s gross domestic product is growing, unemployment is down and consumer spending is up. Yet, the housing market remains comatose. The only explanation is that we are either all still unemployed and not being counted or we’re scared out of our boots.

Want some more evidence that we’re just one giant anti-anxiety pill away from fixing what ails the housing market?

1. The number of applications for mortgages is down.

It’s becoming a broken record: Interest rates are at all-time lows yet nobody is applying for loans. Yes, lending standards are tighter now — tight enough to put the kibosh on almost 16 percent of all home deals that open escrow – but the bigger problem is that potential buyers are afraid to even try to get a loan. Loan applications for home purchases were down 10 percent in a week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

Browse through photos of millions of home listings or search foreclosure listings

Buyers are just plain scared that banks won’t approve their loan. This is the grownup equivalent of hiding in the playground bushes during recess because you think the cool kids won’t pick you for their team.

2. People don’t believe the worst is over.

They are afraid that home prices might fall further. They are afraid that they could lose their jobs tomorrow. They are afraid of looking like a chump, buying when nobody else is buying.

Without question, the days of house-flipping are over. If you are buying, you are buying for the long haul. Remember this: Rents will most certainly go up — that’s why investors are buying properties like mad nowadays; but mortgages that are locked into the current record-low rates will not. If you are planning on staying put, doesn’t it make sense to buy?

As for losing your job tomorrow, ask yourself this: Really? Do you really think that’s likely? While new jobs aren’t being created with anything close to wanton abandon, neither are they being eliminated with the gusto of three years ago. Do you really want to put your life on hold while you wait to see if The Man sneezes in your direction?

Looking like a chump is a tough one. No one wants to be the last soldier killed before the war ends and no one wants to be a homebuyer who bought when prices were still falling. But that gets back to the long-term strategy. You aren’t buying for now, you are buying for the many years to come.

Fear can be paralyzing, but so can group-think. If you read how nobody is buying, you figure all those nobodies must know something. Yeah, they know how to be lemmings.

3. Consumer confidence has plunged, yet we are spending again — just not on houses.

A recent Nielsen poll found that nine of 10 Americans think the country is still in a recession. The memo went out a while ago that the recession officially ended in June of 2009. Pain and misery have clearly lingered and depressed consumers don’t spend money. But if we’re all so depressed, how do you explain why consumer spending rose in the third quarter by 2 percent. We’re even back to our old ways regarding charging and not saving: Consumer credit is back up to 2009 levels and our savings rate has dropped to 3.6 percent, the lowest level in four years. I see our old ways creeping back, don’t you?

We may not be happy, but we’re spending again. I have but one question: If you are willing to hit Macy’s with enthusiasm, why not the housing market?

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Also see:
Survey: Most Boomers Would Cover Kids’ Down Payment
Will FHA Be the Go-To Source for High-Cost Mortgages?
When It Comes to Mortgages, Women Don’t Shop Enough

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Source: http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/

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Q: How do retired people with a mortgage-free home and a limited budget (Social Security and retirement) sell and buy a home? Would they qualify for a mortgage or have to sell the home before buying a new home? Are there creative ways to do this? –Sue

A: I suspect this question will be coming up more and more often in the future, as baby boomers continue to retire. It’s important to note that many do continue to work on some level after retirement, and many don’t own their homes free and clear. It seems like congratulations might be in order for being able to completely retire and pay your house off (or keep it mortgage-free)!

1. Income is as income does. Most lenders will use retirement income, including a pension or monthly Social Security stipend, to qualify a borrower for a home mortgage.

They view it and treat it just like they treat salary or wages — and they require you to document it in a similar way. The lender will want to run your credit; see your most recent tax returns, as well as statements from all your accounts (including any retirement accounts); and see your Social Security and pension or other retirement system award letters.

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2. You might need to sell, then buy — or not. While it’s true that your retirement income looks just the same to lenders as another borrower’s employment income does, debt-to-income ratios and income documentation guidelines have tightened up so much that it can be difficult to qualify for a new mortgage without the cash in the bank from your existing home. So the fact that you own your current home free and clear is a huge benefit.

While the lender won’t necessarily give you any credit for your existing home (i.e., lenders won’t make presumptions about when or for how much you’ll sell it, or how much cash you’ll end up with in hand when you do), neither will it serve as a liability on your mortgage application the way it would if it you were obligated to make a monthly mortgage payment on it.

The fact is, there are challenges and benefits either way you go, whether you decide to sell first or buy first. Obviously, if you sell first, you have the challenge of finding a place to live while you house hunt. On the flip side, you have the security of knowing exactly what your proceeds of the sale will be before buying, which might help you buy well within your means.

Also, if you decide to buy first, you’ll face the possible stressors involved if your home takes a long time to sell or sells for less than you expected, not to mention the challenges of a mortgage payment you’re not used to and the financial burden of maintaining and paying property taxes on two homes at once.

3. Get briefed on all your options. Ask your friends and relatives if they have a mortgage broker they trust implicitly, and set an appointment to get the pro’s input on your next steps. The mortgage broker can run all the numbers involved and tell you what you should be able to qualify for, dollar-amount-wise, before and after you do get your home sold.

The mortgage broker will also give you all of your options, including whether you can qualify for a new mortgage without selling. For instance, if (1) you’re buying to downsize, (2) moving to a less expensive area, (3) you have a hefty savings or asset portfolio or (4) the homes you’re targeting are modestly priced vis-à-vis your income, you might not need to sell your existing home before you qualify to buy the next one.

They might also offer you some more creative options, and sketch out the financial details of what some alternative scenarios would look like. For example, a mortgage broker might help you consider essentially refinancing your existing home, borrowing enough cash to fund your next purchase, then paying that loan back from the proceeds when you do get your home sold.

4. Get creative. If, in all the time you’ve ever owned a home, you ever fantasized about the adventures you’d undertake if you were footloose and fancy-free, consider taking this opportunity to go for it!

Sell your home, then rent a chic loft or a writer’s cabin somewhere, or travel for a year, while you house hunt.

And there are some other, more inside baseball-style creative options to explore, in the same vein of taking out a mortgage on your existing house to pay for your next one.

Talk with a local agent about the possibility of selling your home, then leasing it back from the buyer. Also, when you talk with your mortgage pro, explore the prospect of relatively short-term financing for your new home, which might offer a lower interest rate and monthly payment than a long-term loan, and which might make sense if it’s truly realistic that you’ll pay it off in the near future when you do get your home sold.

Work with a local real estate agent who has a recent track record of success at selling homes in your area, and bring your tax, financial planning and estate planning advisers into the conversation as you try to understand and explore the full spectrum of available options. If you have such a team in place, take maximum advantage of their thoughts and experience as you put your personal action plan in place.

Tara-Nicholle Nelson is author of “The Savvy Woman’s Homebuying Handbook” and “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions.” Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

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Filed under: News, Investing

Thought Snooki and her partners cornered the market on conspicuous consumption? Then you haven’t seen this Jersey Shore mansion. With 22 rooms, a 15-car-garage and 650 feet of beachfront (provided Hurricane Irene didn’t do any re-landscaping), the place gives the reality-TV cast a run for their booze-soaked bills.

Located in Mantoloking, an uber-ritzy community “down the shore,” the home, listed at $16 million, has eight bedrooms, five bathrooms, and stunning views from multiple porches and decks, as well as a brick patio, pool and 200-foot dock.

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Robert Schwartz of Van Sciver Realtors has the listing.

Click on the pictures below to see some other mouth-watering residences in Mantoloking, N.J.:

See more Houses of the Day and other homes for sale in Mantoloking, N.J. on AOL Real Estate.

Got a tip for House of the Day? Know of an exceptional or unusual property currently listed for sale? Please email ann.brenoff@huffingtonpost.com with your suggestions and be sure to include links to listing details and photos. (Due to the volume of response, we unfortunately are unable to respond to each submission.)

More on AOL Real Estate:
Find out how to calculate mortgage payments.
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Find foreclosures in your area.
See more celebrity real estate

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Source: http://realestate.aol.com/blog/2011/09/02/house-of-the-day-jersey-shore-mansion-gives-reality-show-a-run/

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Filed under: Home Equity

NEW YORK (Fortune) — One of the last sources of ready cash for homeowners looking to get money from their house appears to be shutting down and the results aren’t likely to be pretty for the economy.
More From FORTUNE

Betting against the BoA – Countrywide deal

Countrywide: From bad to worse

NEW YORK (Fortune) — One of the last sources of ready cash for homeowners looking to get money from their house appears to be shutting down and the results aren’t likely to be pretty for the economy.

More From FORTUNE

Last week, buried deep in the ugly details of Countrywide Financial Corp.’s earnings release, was the news that its $32.4 billion portfolio of prime HELOCs — home equity lines of credit — had begun to rapidly deteriorate. The reeling Calabasas, Ca.-lender was forced to take a $704 million charge related to homeowners’ inability to pay back equity they extracted from their homes.

The structure of these loans appears to spell trouble for Countrywide and other home lenders with big home equity loan books. According to an overlooked Moody’s Investors Services note that came out last Wednesday, once a certain threshold of losses is achieved in a home equity loan securitization pool, the bond holder is paid off ahead of the lender.

What’s worse is that it’s difficult to see how large a lender’s exposure is to home equity loans. Known as rapid amortization, this risk is treated as a contingent liability for Countrywide and other home equity loan lenders and is carried off balance sheet, until deterioration occurs and the lender goes on the hook for the loans. Countrywide is the nation’s biggest home equity lender, with around 9% of the market.

In the short-term, this is just another blow for a investors in the financial sector. Longer-term however, it looks like a lot of ready cash is getting taken away from homeowners, at least in California. Coupled with rising unemployment, this could pose a major headache for already strapped homeowners.

To head off more defaults, Countywide sent out letters to 122,000 homeowners last week informing them that their home equity credit lines were shut down since their estimated home values had dropped below their loan amounts.

Right behind Countrywide was Chase Home Lending, which notified borrowers in Los Angeles, Imperial and Orange Counties that they could tap their credit lines for no more than 70% of the value of their house. Previously, the limit had been 90%.

The Calculated Risk blog, which specializes in real estate and mortgage finance issues, has estimated that mortgage equity withdrawals for the fourth quarter totaled $145 billion. If tightening lending standards are put rapidly into place for home equity loans, it is not inconceivable that $50 billion or more of spending power is instantly removed from the economy.

In other words, at least one-third of the recently passed $150 billion stimulus package is already canceled out.

(C) 2008 Cable News Network. A Time Warner Company. All Rights Reserved.

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Source: http://realestate.aol.com/blog/2008/02/05/home-equity-loan-defaults-soar/

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Consumers may prowl for homes in 2012: Fannie Mae

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Filed under: News, Credit

By Gerri Detweiler

Will a mortgage help — or hurt — your credit? If you’re thinking, “Well, both,” you’re exactly right. But there are subtleties involved that may surprise you.

To get a mortgage these days, a lender is going to closely scrutinize your income, debt and credit history before giving you the loan. That makes a mortgage a sign of financial responsibility that can help your credit scores, says Sarah Davies, senior vice president, risk and analytics, for VantageScore. “They see you as a highly creditworthy consumer,” she says.

“You might notice that most credit reports single out mortgages in their own category, separate from installment loans and revolving loans,” Steve Ely, CEO of eCredable points out. “Lenders looking beyond the credit score want to quickly see how well you’re doing living up to this obligation. For example, if you are responsible enough to take on a mortgage, and can make the ongoing payments on time, you are rewarded by having your credit score increased over time.”

Another way a mortgage can help your credit is by rounding out your credit history. “Over the long term, adding a mortgage to your credit report can improve your credit “mix” if, for example, your credit report only contains revolving (typically credit card) accounts,” explains Barry Paperno, community director for Credit.com and an expert in credit scoring. “Having multiple types of credit — revolving and installment — indicates you’re able to manage different types of credit products, and leads to lower risk.”

But that’s not a huge advantage he warns, since only about 10 percent of your score is based on your mix of credit. (He’s talking primarily about FICO scoring models here.) “Don’t expect the addition of a mortgage to add more than a few points to your score even under the best of circumstances.”

What about homeowners who have paid off their mortgages? While that may be the smart thing to do financially, it’s not likely to mean a boost to your credit scores. While a paid-off mortgage is still considered when your credit scores are calculated, “it doesn’t play as significant a role,” as one that is still in repayment, Davies warns. One reason for that is that the scoring model can’t tell if the homeowner paid the loan off or simply refinanced it.
And what about the size of the loan? Is it better to have a larger mortgage? That may help a little bit, Davies says. But by the same token if you fall behind, the hit to your scores can be greater.

And, yes, a mortgage can also hurt your credit. The millions of Americans who have missed payments or lost their homes to foreclosure in recent years know that firsthand. Miss a mortgage payment and your scores may drop significantly.

A VantageScore report explains it this way: For most credit card models, missing a credit card payment has less impact than missing a mortgage or auto payment. This is because credit score models consider late payments on your larger, secured debts as higher risk than being late on smaller, unsecured debts such as credit cards.

“The bigger the asset, the more foundational it is, and the bigger the hit to your credit score,” warns Davies.

But even if you’ve made all your payments on time, there is another way a mortgage can impact your credit scores. It’s due to the way new accounts impact your scores. Paperno explains:

The immediate impact upon adding a mortgage (or any new account) to your credit report is usually a drop in your score. Research has shown that a consumer who has opened a new account recently is more likely to have problems paying on time in the future than someone who has no recently opened accounts. Fortunately, any points lost for this reason tend to be regained within six months after opening the new account, provided all payments are made on time, account balances are kept low and additional new accounts are opened only as needed.

Ultimately, like most types of credit, a mortgage can help your credit if you manage it well and make the payments on time. That may be easier said than done for some these days, but if your goal is a strong credit score, it’s worth keeping in mind.

See more on Credit.com:
8 Surprising Things That Affect Your Credit
The Ultimate Credit Report Cheat Sheet
How Can I Get a Loan After Credit Issues?

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.

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Source: http://realestate.aol.com/blog/2012/09/20/ways-a-mortgage-can-help-or-hurt-your-credit/

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Filed under: News, How To, Investing

Scanning the foreclosure listings to snap up your dream home on the cheap?

It’s tempting indeed to take the bottom-fisher route, especially when bank-owned deals are so plentiful and annual housing prices in 20 major cities combined declined 3.8 percent in January, according to the closely watched S&P/Case-Shiller U.S. National Home Price Index released Tuesday.

But veteran real estate agents offer up some sound advice for would-be buyers homing in on bank-owned properties, short-sale deals, and foreclosures. Here’s how to keep the frustration level low when shopping for your bargain-basement dream home.

1. Get your terms straight.

“Foreclosures” is a loose term that buyers bandy about when telling their real estate agent to seek them out. In most cases, homebuyers aren’t really looking for foreclosures in the technical sense.

“A real foreclosure is when the owner is losing their house and it’s being auctioned off on the steps of the courtyard. You need to have cash to buy these houses, so it’s usually only investors who buy foreclosures and get amazing deals,” says Kristi Roberts, a real estate agent with McGuire Real Estate’s Berkeley, Calif., office. “If the house doesn’t sell on the courtyard steps, then it becomes a bank-owned house.”

Nonetheless, when clients ask to be shown foreclosures, most real estate agents know they are likely asking to see bank-owned properties. Chris Dasaro, a Coldwell Banker real estate agent in the Grosse Pointe Woods, Mich., office that also serves the Detroit market, estimates that upward of 80 percent of his clients want to be shown bank-owned properties.

2. Don’t get too excited about lowball listings.

In the greater Detroit area, where January housing prices were actually up 1.7 percent over last year, according to Case-Shiller, Dasaro has seen a couple of instances in which bank-owned properties were listed as much as 50 percent below the market rate. That, of course, generates a feeding frenzy where bidders in some cases end up paying above the market rate for a particular house.

Dasaro estimates that he encounters lowball situations like these in about 5 percent to 10 percent of the houses he sees, and notes that buyers would be wise not to get overly excited with anticipation that they could snap up the house at that listed price.

The lowballing is not a sales technique, but rather the likely result of the banks relying on broker price opinions rather than appraisals for the properties, says Roberts. She notes that she has also seen situations in which the banks have overpriced properties by a large margin, but often in those cases potential buyers are not disappointed if they don’t get the house.

3. Prepare for big differences in bank-owned property sales.

Compared to purchasing a house from a private owner, there are more hoops to jump through when buying a bank-owned property, real estate agents say. Buyers should brace for:

o. Far fewer disclosures from the seller regarding the condition of the property, because the banks rarely, if ever, visit the property they are selling, say real estate agents.

o. Being pressured to buy “as is.” Mary Ann Griffin, an associate Realtor with RE/MAX in Atlanta, says buyers should always make a contract contingent upon the buyer’s home inspection, even if the contract notes that the sale will be done in “as is” condition. Griffin notes that securing a VA or FHA loan requires banks or other sellers to make appraiser-recommended repairs.

o. “Gotcha” addenda in the contract. Roberts notes that banks will often include an addendum to the contract that may contradict something called for in the beginning of the document. Other addendum provisions may include clauses such as a $100-per-day penalty fee for every day the buyer is late in closing the deal or fulfilling a contingency.

o. Lots of fine print. “Buying bank-owned property is like the Wild West of real estate. Sometimes you just have to put on your cowboy hat,” Roberts says. “I’m a real cautious person and address these things by reading the document carefully and having a good team, where we stay on top of it and pay attention to the timelines and deadlines.”

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4. Know what you’re in for in short-sale situations.

Bargain hunters are also keen to take a gander at homes listed as a short-sale. But venturing down this path can often lead to long delays in home ownership, and can sometimes fail in the end.

Under a short sale, the owner puts together a hardship packet that’s sent to the bank and will sometimes include a sales contract with a prospective buyer, Roberts says. But it can take as long as six months before a bank responds as to whether they will accept the seller’s plans for a short sale.

Roberts knows of one particular case in which an investor bid on a Berkeley, Calif., foreclosure on the courthouse steps. Although this investor lost the bid, he was curious nonetheless about the house that sold for $365,000 at auction. In making an inquiry, Roberts learned that the same house was in the final stages of approval for a short-sale for $425,000.

Not only was it a case of the left hand not knowing what the right hand was up to at the bank that was overseeing the transactions, but it ended up costing four months of time for the prospective short-sale buyer, Roberts says.

Another tactic short-sellers use is the illusion of a tight deadline. Recently, Roberts has seen a couple of short-sale auctions in which the listing price is set extremely low but the bids end up closer to the market rate — but surprisingly, the window of opportunity doesn’t close after the auction is over. The short-sale real estate agent continues to accept offers on the house for several more days in order to land the absolute highest price.

Says Roberts: “I have clients who want to go to these fake auctions, and we’ll go, but I see how frustrating it can be for them.”

Griffin offers these tips to short-sale buyers:

o. Try to avoid “potential short sales” and seek out “approved short sales” instead. In some cases, banks will approve a homeowner conducting a short sale, even if no prospective buyers are listed.

o. Work with an experienced agent who has a track record with short sales.

o. Document all correspondence (for example, by using email).

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Source: http://realestate.aol.com/blog/2012/03/29/4-secrets-to-scoring-a-bank-owned-property-deal/

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Filed under: News, Economy, Home Equity

Even as the Dallas-Fort Worth area pumps itself up for the excitement of the Super Bowl, it also is experiencing a housing crisis mega-bummer: Distressed home sales hit a new high in Dallas-Fort Worth in 2010, creeping into a record 16 percent of total properties sold by agents in this north Texas area. Dallas-Fort Worth had previously been the exception, a pocket of home-value stability in a nation bogged down by sagging house prices.

Sales of distressed homes — that is, short sales, or homes sold due to foreclosure– have grown steadily in north Texas, according to the gurus at Texas A&M University’s Real Estate Center. In 2003, only 5.7 percent of homes sold through real estate agents in the north Texas multiple listing service were “distressed transactions.” Now, Dallas Realtors say the real number is actually much higher.

Not all distress or short home sales are identified in the MLS, and if a real estate agent was not involved in the transaction, it will not be included in statistics. The median price of distressed homes sold in the Dallas-Fort Worth area last year was $57.20 per square foot, compared to $81.52 for non distressed houses.

Dallas broker Alicia Trevino says she thinks the numbers are much higher. The Dallas area has seen a dramatic increase in the last few months of distressed properties for sale or properties that are about to be distressed.

“We still have thousands of homes that are going to come up on the market, homes that were held in moratorium last fall because of the Robo-signing crisis,” says Trevino, who retooled

See photos of homes for sale in your area and across the country on AOL Real Estate

herself about a year ago to focus on luxury short sales in the venerable Park Cities area. “The existing home market is going to be hurt by the continued saturation of those distressed properties.”

National figures indicate that between 36 and 47 percent of all homes sold across the U.S. were distressed properties, and some experts go as high as 50 percent, making 2010 a banner year for distressed home sales. Consumers are seeing more real estate auctions than ever before. Banks often polish up then hand over their distressed properties to auction houses for quick liquidation sales. Investors are getting great deals out there at these auctions — some as low as 50 percent off the homes’ last listing price. Still, says Trevino, she doesn’t understand why sellers don’t just lower home prices and sell the properties before they get to the bank.

If Dallas/Fort Worth distressed sales are at 16 percent — or even 20 percent — of all local real estate transactions, that is still far below the national norm. While the Dallas market is not robust, it has not suffered as much as other bubble markets, nor has it lost as much in values. In fact, one recent report by the Real Estate Center indicated home values have actually risen in Dallas 1.2 percent, even when shadowed by all the distress. Texas law limits homeowners to how much they can borrow against their home, so far fewer owners are under water with huge home equity loans. And the market is extremely segmented. Certain higher income neighborhoods saw a flurry of real estate activity in December, and local experts think the spring market will be hopping.

Trevino thinks the existing home market is still going to be hurt by the continued saturation of distressed properties, but says that shouldn’t keep buyers away from the beach, so to speak. I think, she says, the next 12 months are going to be the final push. Even if you take a $100,000 bath on your home, think of it as moving equity if you can move up into a bigger home or blue chip real estate. And if interest rates start to creep higher, she thinks buyers will come out of the woodwork.

“I think we will have a great spring market,” says Dallas appraiser D.W. Skelton. “The sellers have gotten more realistic and dropped prices, and I think buyers are finally ready.”

For more insight on mortgages and refinancing see these AOL Real Estate guides:

• Mortgage Jargon in Simple Terms
• How to Get a Low Mortgage Rate
  
• When to Refinance
• Four Ways to Benefit From a Cash-In Refinance

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Source: http://realestate.aol.com/blog/2011/02/02/dallas-fort-worth-fails-to-escape-housing-crisis/

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Filed under: Home Equity

As a first time home buyer there is a lot of new concepts and terminology to get the hang of. The home buying game can be intimidating and you’ll need to seek guidance to learn the lingo.
You’ve finally found the perfect home and are working out the finances with your real estate agent and mortgage broker. This step of the home buying process can be eye opening and a shock to the

As a first time home buyer there is a lot of new concepts and terminology to get the hang of. The home buying game can be intimidating and you’ll need to seek guidance to learn the lingo.

You’ve finally found the perfect home and are working out the finances with your real estate agent and mortgage broker. This step of the home buying process can be eye opening and a shock to the wallet in many ways. The costs of financing and closing on a home can be staggering and you may wonder what each of the elements are that are making your monthly payment rise each time you run the numbers.

Often as a first time homebuyer you don’t quite have the twenty percent down on your home that is the standard when you use all those handy online mortgage calculators to figure out your payment. When you have less than the twenty percent down on the cost of your home, you are forced by the bank or mortgage holder to take out PMI, or private mortgage insurance. This protects or insures the bank against the possibility of you defaulting on your loan. The additional monthly cost of the private mortgage insurance can be a substantial line item and add a significant amount of money to your monthly mortgage payment.

Only once you have paid your mortgage down to 78% of the value of the current loan, and are in good standing with the bank, may they drop your PMI. Often times you’ll find it won’t just be an automatic process by the bank. It’s something you’ll probably need to call up and ask for. There may also be a chance you can get your home appraised if home values rise significantly in your area to prove you have 20% equity, and you then have an argument to drop the PMI. You will have to pay for the audit though, and it may not be a quick and simple process working with the mortgage holder to drop the insurance.

Mortgage insurance can be a pain on the pocket book and may seem an unnecessary cost for the struggling first time homebuyer, however this may just be the necessary evil that allows you to get a large loan in the first place. So save, save save your money and get that twenty percent down from the get go or expect to have higher payments for the first couple of years of your new mortgage loan.

Learn more about Types of Mortgages.

See current Mortgage Rates.

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Source: http://realestate.aol.com/blog/2008/11/11/explaining-mortgage-insurance/

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Filed under: News, Financing, Investing

The so-called “liar loan” mortgages often associated with the toxic subprime loans of the boom years are tiptoeing their way back into the housing market.

But, believe it or not, the latest crop of “stated-income” loans may represent a step forward for today’s sluggish market.

California based mortgage company Rancho Financial recently began originating loans that do not require applicants to submit pay stubs or tax returns, HousingWire reports. Stated-income loans proliferated during the housing boom, and acquired a stigma and became widely known as “liar loans” after lenders started shedding other requirements from loan applicants, along with pay stubs and tax returns.

But Rancho Financial’s loans seem to be a far cry from the toxic mortgages that blew up during the financial crisis.

Rancho only lends to well-heeled borrowers, originating loans that currently average about $500,000, the company told HousingWire. Some of the loans are jumbo loans, high-interest mortgages whose amounts exceed the threshold of those that government-sponsored investors such as Fannie Mae, Freddie Mac and the FHA are permitted to back.

But just because the government isn’t willing to guarantee jumbo loans, doesn’t mean they’re necessarily subpar. In Rancho’s case, most borrowers must make a 30 percent down payment and have a credit score of at least 740, a two-year history of self-employment, a 12-month reserve and a business license or letter from a certified public accountant, HousingWire reported.

“The down payment and credit standards, among others, more than offsets the no-doc risk,” said Mark A. Calabria, director of financial regulation studies at the politically conservative think tank, the Cato Institute. “So in general, this is a good thing. More loans should help housing demand and are not a risk to the taxpayer.”

Mortgages of this strain may fill a gaping hole in the real estate market that has lingered ever since the housing meltdown, according to Jack Guttentag, an emeritus professor of finance at the University of Pennsylvania’s Wharton School who offers mortgage advice on his website, mtgprofessor.com.

“This is an attempt to deal with a serious void in the market, which is the part of the market that is devoted to self-employed borrowers,” he said, adding that stated-income loans, by not requiring paystubs or tax returns, make it easier for self-employed borrowers to acquire mortgages. And by originating many jumbo loans, they are also satisfying pent-up demand among well-paid entrepreneurs and freelancers, as well as other affluent borrowers who want big loans to buy pricey homes.

So why haven’t more companies taken the plunge into stated-income loans already? Experts say that most investors remain haunted by the memory of toxic subprime loans, many of which did not require borrowers to submit pay stubs and tax returns.

Rancho’s market play, therefore, marks the arrival of some daring investors. Well, make that one daring investor: Rancho told HousingWire that it sells its loans to a single portfolio investor, whom it would not identify.

“They are really creaming the market in my view,” Guttentag said. “It’s amazing that there aren’t more of them out there. Not many investors out there have the appetite to acquire this kind of paper, but they ought to.”

Rancho declined to provide comment for this story.

See also:
Why Millions May Be Leaving Mortgage Assistance on the Table
Home Affordability: How Much House (or Apartment) Can I Handle?
Home Costs: 4 Crucial Questions Reveal Hidden Expenses

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Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
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Source: http://realestate.aol.com/blog/2012/06/22/return-of-mortgages-blamed-for-housing-crisis-but-dont-fear/

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They may not be hopeful that the U.S. economy will rebound any time soon, but most Americans are optimistic about the future of their own personal finances. A newly released national survey conducted by KRC Research for the Certified Financial Planner (CFP) Board of Standards, Inc. finds that 83 percent of the 1,011 adults polled [...]

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Indictment alleges that defendants stole money intended to purchase equipment to benefit Maverick County In Eagle Pass today, federal agents arrested one current and one former Maverick County employee, as well as an accomplice, charged with wire fraud and stealing approximately $17,500 in County funds announced United States Attorney Robert…

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Why spend a ton of money to make a festive scene when you can create DIY party decorations with a personal touch for way less cost?

DIY Party Decorations With Tissue Paper

Tissue paper is easy to find anywhere, comes in every color you can think of, and makes great party decorations! Plus you can use any leftovers to wrap gifts. These decorations can be made for any kind of party, all year round, just by changing up the color theme.

Read more…

The post DIY Party Decorations For Frugal Festive Fun appeared first on DailyPerk.

Source: http://dailyperk.perkstreet.com/diy-party-decorations/

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Filed under: News, Economy, Financing

WASHINGTON — The average rate on the 30-year-fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. But even with the cheapest rates in history, the housing market remains depressed.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That is below the previous record of 3.88 hit two weeks ago.

The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s.

Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.

Rates have been low for more than a year, and the average rate on the 30-year loan has hovered near 4 percent for more than three months. Yet few people can afford to buy a home or qualify for a loan. Many of those who can have already done so.

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High unemployment and scant wage gains have made it harder for many others to qualify for loans. Still others don’t want to sink money into a home that they fear could lose value over the next few years.

Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.

Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.

Mortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.

For the five-year adjustable loan, the average rate fell to 2.80 percent from 2.85 percent. The average on the one-year adjustable loan rose to 2.76 percent from 2.74 percent.

The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.

Copyright 2012 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

Also see:
Open Houses of the Week: Super Bowl Weekend
Distressed Sales Undercut Home Prices in 2011, Study Says

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Source: http://realestate.aol.com/blog/2012/02/03/30-year-mortgage-rate-falls-to-ninth-record-low-in-last-year/

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Filed under: News, Home Improvement, How To

If you’re trying to sell your house, the first thing a Realtor will tell you is to break out the paint roller. A fresh coat of paint is the quickest and least expensive way to lighten, brighten and perk up a home’s interior. It’s also a job you can tackle yourself–if you do it right. In today’s “DIY Diagnosis,” our friend Brie Dyas at DIYLife tells you how to paint a room for great results.

The arrival of a new season always triggers a need to change up the wall colors in my home. And when I want a change, I want one now. But when it comes to painting a room, it’s easy to get swept up in getting the job done instead of getting the job done right. Here’s a handy list of common problems that can come up, why they did and how you can stop ‘em.

- A dark hue looks faded. This happens when you paint over a light color with darker one. To prevent this from happening, apply a gray-tinted primer coat in between. This will stop the lighter hue from bleeding through the bolder one, and will create a neutral base that’ll let bold hues look their best.

– A random shiny spot appears a week after painting. When a flat paint is applied to a high-traffic area, a glossy spot can appear where hands (or a sponge) frequently comes in contact with the painted surface, rubbing off the matte finish. So, when it comes to high-traffic areas where you know you’ll have to do some cleaning, go for a semi-gloss.

For the rest of the tips, read the full story at DIYLife.

Want more interior painting advice? These AOL Real Estate guides can help:

• Painting Tips for Home Staging
• Top Tips for Interior Painting Projects
• Sell Your Home With These Paint Colors

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Source: http://realestate.aol.com/blog/2011/06/07/selling-your-house-get-out-the-paint-roller/

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Filed under: News, Advice, Financing, Refinancing

There’s a surprising new finding that says women get lousier mortgage rates than men, but not because of gender discrimination. It’s because instead of shopping around for cheaper loans, they rely on the recommendations of friends.

To recap: When it comes to mortgages, women don’t shop enough.

The report published in the Journal of Real Estate Finance and Economics set out to explain why women were 32 percent more likely to get a subprime mortgage than men in a 2006 study. According to a team of researchers led by Florida Atlantic University’s Ping Cheng, the answer wasn’t discrimination because of gender or even income disparities.

Women pay higher rates because they are more likely to listen to friends’ recommendations, whereas men are more likely to shop around for the best deal.

“Our empirical test confirms that search effort is rewarded in marketplace, and suggests that gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills,” the report summarizes.

It makes sense to Daily Finance columnist Laura Rowley. “It’s not surprising, because mortgage shopping can be incredibly complex, so we look to people we can trust to help make the decision,” says Rowley. “But this is one area where you don’t want to get by with a little help from your friends.”

Instead, she advises, call two mortgage brokers and a direct lender, preferably a local small or mid-size bank, and try the following script: “Hi, my name is ____ and I’m in the market to buy a $____ house, and I’m going to put down ____ percent. I’m getting three written estimates, and then I’m going to choose. Can you email me a cost-estimate worksheet stating all the fees and the interest rate?”

Be sure to get the estimates on the same day, as rates can change quickly. Also, don’t ask for rates and fees by phone; unscrupulous brokers will simply low-ball their estimate to get you in the door, says Rowley.

For more tips on shopping for a mortgage, see these AOL Real Estate guides:

How Much Can You Afford [Video]
How to Get a Low Mortgage Rate
Mortgage Jargon in Simple Terms

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

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Source: http://realestate.aol.com/blog/2011/11/18/when-it-comes-to-mortgages-women-dont-shop-enough/

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Filed under: News, Advice, Home Improvement

Home security technologies are keeping pace with the other gadgets in our connected, on-demand lives. Unlike the cumbersome systems of the recent past, new home security components are discreet, easily controlled from afar, and smart enough to screen out don’t-need-to-know info, like your pet’s indoor traffic patterns.

If you’re shopping for trustworthy home security support and flexible system options, you have plenty of choices. New-and-improved technologies are also far more affordable than you might guess, whether they’re designed for DIY home security or professional installation.

Smarter surveillance
Motion sensors are standard in home security, and now, high-tech cameras can also be part of

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the plan. A new generation of camera-driven surveillance systems like Cernium’s Archerfish removes concerns about cost and time-consuming screening by having the smarts to actually focus on what’s important: your home’s safety. You can program for expected events and types of motion, such as the kids coming home from school, and will be notified when there’s an unexpected event, whether it be a package you forgot you’d ordered or an actual intruder.

“The key change is this degree of intelligence,” says Craig Chambers, Cernium president and CEO. “Instead of having to think about when you want to check the video camera–and most of the time, find out nothing’s happening–you can very easily configure Archerfish to look for certain kinds of activities in the field of view. Once they’re detected, you’ll get an e-mail notification with a video clip attached. You have the convenience of knowing what’s going on without having to constantly look in on what’s happening.”

Wireless components
Thanks to the flexibility of wireless technology, you can station critical components in tight spaces or places where wiring would usually be a challenge (as with a partially finished attic or basement). Their comprehensive coverage can be put to work wherever you need them, making it easy to steer clear of interference from other appliances or in-home wireless networks.

New home security tips

More intuitive controls
Gone are keypads with tiny screens and hard-to-decipher displays. Today’s home security controls offer touch-screen capabilities in living color, with intuitive system designs that look more like your favorite smartphone app than the complicated monitors they are. Smart security control panels don’t even have to be mounted on a wall–many are meant to conveniently travel with you from room to room. Mission control can also extend to your laptop or smartphone, allowing you to check in and receive important alerts during daily routines or extended travel.

Portability
With the exception of professionally installed and hard-wired home security systems, just about every contemporary component is designed to travel to a new home or other site with security concerns. That portability also plays into changing needs within your current living space: compact surveillance cameras, motion sensors and control panels can easily move from one position to another.

Multitasking home management
Home security can also be integrated with other critical monitoring streams for a one-stop solution to home management. Fire and carbon monoxide alarms, temperature regulation, HVAC component status, home lighting, and even freeze and flood alerts can be accessed from the same set of controls. ADT’s Pulse system is one example of full-service home automation, easy to monitor and manage remotely via interactive touchscreen, your laptop or smartphone.

High-tech hubs, otherwise known as security companies
Ever-advancing technology means your home security company has even more sophisticated means of supporting your needs. Cutting-edge computer systems, stellar backup measures and strict systems redundancies make it possible to respond immediately and provide customers with critical data records. The ability to customize systems has also increased by leaps and bounds through the integration of wireless components, mobile apps and surveillance technologies smart enough to distinguish between real threats and false alarms.

Even as home security continues to evolve and change, the points to consider while shopping remain the same. Check out the costs involved, including installation charges and any monthly fees and deposits associated with a long-term service contract. Compare component options and make sure you understand how various systems would–or wouldn’t–work for your home and lifestyle. Also think about features and whole-system integrations that can make your life easier, offering one-touch control and the level of communication you need to keep your home secure, wherever you are.

Tom Kraeutler is a home improvement expert for AOL Real Estate and host of “The Money Pit,” a nationally syndicated home improvement radio program offering home improvement tips and ideas, including tips on home security.

For more on home security and related topics, see these AOL Real Estate guides:

• Low-Cost Home Security Solutions
• Protect Your Home From Break-Ins During the Holidays
• Home Security: Systems With Cutting Edge Protection
• The Renter’s Guide to Holiday Safety
• Apartment Fire Safety Tips

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Source: http://realestate.aol.com/blog/2011/03/21/high-tech-home-security/

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Filed under: News, Home Improvement, How To

By Lisa Frederick

We’re all for empowering homeowners to take on their own house improvements. You save money, gain confidence and get the satisfaction of custom tailoring your home with your own hands. But when it comes to certain tasks — plumbing, for instance — we draw the line. Although these 10 jobs might be within the scope of a very experienced owner, for most of us, they require help from someone who handles them for a living.

1. Foundation repair. If your foundation is in trouble, so is the rest of your house. Wall cracks, sagging ceilings or floors, lopsided doorways and other red flags add up to one solution: a call to a foundation contractor. It’s worth investing in professional help to ensure your house remains on sure footing.

2. Electrical wiring. We haven’t yet met a builder who thinks that wiring is a DIY job. That doesn’t mean you can’t replace an old ceiling fan or install a garage door opener — we’re talking about serious, behind-the-walls electrical work. Not only do you need thorough knowledge of the most updated building codes, but the worst-case scenarios are really, really bad (house fire, injury, death). Hire a licensed electrician for your own safety and peace of mind.

3. Removal of a load-bearing wall. Knocking out a wall sounds simple, right? Well, if it’s load bearing, meaning it carries and distributes weight, things get a lot more complicated. Eliminating such a wall wipes out support for the ceilings, floors and other structural elements that rest on it — and that can have disastrous consequences for the entire home. Plus, the wall could contain wiring or ductwork that you don’t want to disturb. Leave this tricky and time-consuming job to a remodeling contractor.

4. Major plumbing. Two words: water damage. You can probably install a new faucet, a showerhead or even a toilet, but when it comes to the bigger stuff, pro is the way to go. Pipe connections and other trouble spots can spring leaks that may cost you dearly in the long run. Here’s a good rule of thumb: If it involves work behind the walls, don’t try to handle it on your own.

5. Natural gas lines. Remember the worst-case scenarios with electrical work? Same with gas. It may sound simple to run a gas line directly to your grill or fire pit, but it isn’t. Call the gas company and thank us later.

6. Tile and tub resurfacing. Although this is an affordable alternative to ripping out and replacing dated tile or an old bathtub, don’t be tempted to save even more by trying it yourself. From the chemicals used to strip off the old finish to the delicate technique of applying a new one, it’s a specialized job that calls for specialized help.

7. Roofing. Besides the fact that roof goofs can wreak costly havoc if they leak, balancing on a steep slope of shingles with a toolbox is dangerous, especially if you’re not properly trained. Hire a roofing pro to be sure that the job gets done right and that you won’t face a treacherous fall.

8. Tree removal. Smaller trees (say, 10 or 15 feet high) are OK to cut down on your own, but anything larger should have you speed-dialing the tree service. First, amateurs and chainsaws rarely mix well. Then there’s the art of gauging where the tree will fall — miss the mark, and it could hit a power line or crush a wing of your house. And trying to balance up high while you saw off limbs is an ER visit waiting to happen.

9. Stripping old paint. Don’t take a chance with this one. Paint that dates from the late 1970s or earlier could contain lead, and breathing in the dust as you scrape it off may lead to health problems. Protect yourself and your family by turning the job over to a licensed lead-abatement contractor.

10. Wood-burning stove or fireplace installation. Fire safety is the biggest concern, but this also is an extremely complex job that requires an understanding of special considerations beyond the fireplace itself, such as insulation. Attempt it yourself, and you’re literally playing with fire. And you know what they say about that!

See the original story over at Houzz.

More on Houzz:
Browse 380,000+ Inspiring Home Photos
Houzz News: Remodeling Heats Up
Find the Right Architect or Designer for You

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Finds homes for rent in your area.

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Source: http://realestate.aol.com/blog/2012/03/30/10-home-fixes-that-require-a-pro/

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Over the last couple of months, there have been three class-action lawsuits filed against companies that were allegedly violating labor laws by employing unpaid interns. This is a sign of our new culture in the wake of the recession; people have become increasingly uncertain about when interns should be paid, and are beginning to ask the question: do interns get paid at all anymore?

Read more…

The post Do Interns Get Paid? When to Ask for Compensation appeared first on DailyPerk.

Source: http://dailyperk.perkstreet.com/do-interns-get-paid/

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Filed under: News, Foreclosures, Lifestyle, Other, Renting

During the Great Depression, people who were forced to live in their cars were known as “Ford families.” Today, they go by the far more impersonal name of the “vehicular homeless,” and you can count 45-year-old Carey Fuller and her two daughters, 8 and 17, among them.

The Fullers (pictured above) became homeless in April 2004 when Carey lost her job in the financial services sector in Seattle. With the job loss came a move from a three-bedroom apartment into a two-bedroom — but that wasn’t enough to cut expenses. Seeing what was waiting for her around the corner, Fuller took her final bit of income, a tax refund, and used it to buy an RV that she and her girls could live in. After a while, even gas and maintenance on the Winnebago became more than she could afford, so she traded down for a minivan. Fuller takes whatever work she can find, often landing part-time jobs. She also blogs about her life as a homeless mother living in a van.

As the economy continues to circle the drain and the number of foreclosures rises, more and more people are following in Fuller’s tracks. Some cities, like Venice and Palo Alto in California, have even created parking areas for people who live in their vehicles.

“Cars are the new homeless shelters,” says Joel John Roberts, CEO of PATH (People Assisting the Homeless) Partners, the largest services provider for the homeless in Los Angeles County. Car and van dwellers don’t show up in U.S. Census Bureau data because census workers don’t knock on car windows, Roberts says.

How They Got There

How did so many families wind up sleeping in cars, vans and RVs? In most cases, they were hit with a job loss or health crisis that cost them their home. The move from roof to backseat is often swifter than expected, and in the case of those whose homes have been foreclosed, there is often a sense of disbelief that the actual day of eviction will come. Departures are often fast and furious, with things thrown into a van. Often, the newly evicted don’t travel far; they camp out in the neighborhood where they lived. They quickly learn which public parks leave their restrooms unlocked and that joining the local YMCA provides access to a shower.

In some cases, it’s divorce, not unemployment, that puts people in their cars at night. Rudy Salinas, director of outreach for PATH, recalls finding a man living in his car in a supermarket parking lot a few months ago. The man had a stack of neatly dry-cleaned uniforms next to him, which he wore to work each day. But at night, separated from his wife and unable to support two households, he slept in the market’s parking lot.

Salinas said that PATH did its own census of the homeless population in Hollywood, Calif. They counted 748 people without homes; 151 of them were car dwellers.

“In my 19 years of doing outreach, I have never seen such a spike in numbers like the one in the past 18 months,” he says.

Carey Fuller, the single mother in Seattle, advocates for the homeless while being homeless herself. She says that she parks “anywhere I can” at night, picking spots near foreclosed homes to avoid police detection. Her daughters do their homework in the school library and they do laundry in public laundromats. Meals are taken at church soup kitchens or purchased in convenience marts that have microwaves to heat things up. She lives on an inconsistent child support payment of $150 a month and $500 a month in food stamps for the three of them. Showers are taken at the community pool; on weekends, they hang out at the library where there are many free events.

She gave up trying to use the overtaxed housing assistance system, because of the long waiting lists for apartments.

Is she just a job away from being able to rent an apartment? Fuller says it isn’t as simple as that. Landlords discriminate against the vehicular homeless, she says, and demand to see a current rental history. After sleeping in the car for nearly eight years, she doesn’t have one.

She’s been doing this for so long that it’s become a way of life.

“My life feels normal to me,” she said, “We live just like every other family except we sleep in the minivan.”

A New Community

Car and van dwellers have formed a community of their own, often exchanging survival tips online. Fuller has taught people how to make a “coffee can cooker” on Facebook.

For a long while, the Wal-Mart Stores chain was known for its tacit willingness to let RV-ers use its parking lots overnight. In the evening, the campers served as a de facto security force, making sure that no one did anything to give the police reason to come calling. In the morning, the campers frequented the store, often buying their day’s food and supplies there. Gradually, more and more Walmarts became less hospitable to the community. Word quickly spread among the van dwellers about which ones you could park safely in without getting in trouble.

Warm climates tend to draw those living in their vehicles, for the obvious reasons. Southern California, Florida, Arizona and Nevada are popular among the displaced, although many people initially try to stay close to the spot where they fell. They want to keep their kids in the same school, stay close to family and friends. And they lack the money for gas to crisscross the country without direction or purpose.

Salinas tells of the single mother who works at a minimum-wage job and has her 5-year-old son sleep in her sister’s Section 8 apartment. She herself sleeps in the car out in front of the apartment each night, fearing that her presence inside would violate her sister’s HUD-landlord agreement, which limits the number of adults allowed. She doesn’t want to cause her sister to become homeless too, Salinas said. It’s not illegal to sleep in your car, by the way, unless a municipality makes it so.

As for today’s “Ford families,” it’s not without some irony to give them the moniker. Although Henry Ford did help a small number of distressed families by giving them loans and some land to work, he also laid off thousands more. And he deeply angered many with public comments about how the unemployed should do more to find work for themselves.

Also see:
Detroit Mom Offers to Trade Her House for a Car
Protesters ‘Liberate’ Foreclosed Homes
Squatting: Social Menace or Economic Necessity?

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Filed under: Advice

After a constantly backed-up drain in Parrottsville, Tenn., caused $1,200 in flood damage to the nearby Parrottsville Inn during rainstorms (pictured below), the hotel’s owner was fed up. He called on the town to correct the problem, and what officials found as the culprit of the blockage shocked everyone.

Twenty-seven basketballs, seven to 10 footballs and several baseballs and helmets were pulled from the drain over a three-day period (pictured above), Knoxville TV station WBIR reported. Some of the items could date back to the 1940s, officials said.

“We just couldn’t believe it,” Parrottsville Mayor Mary Keller told WBIR. “We thought [the backup] was from all the dirt.”

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Filed under: Home Equity

NEW YORK (Fortune) — One of the last sources of ready cash for homeowners looking to get money from their house appears to be shutting down and the results aren’t likely to be pretty for the economy.
More From FORTUNE

Betting against the BoA – Countrywide deal

Countrywide: From bad to worse

NEW YORK (Fortune) — One of the last sources of ready cash for homeowners looking to get money from their house appears to be shutting down and the results aren’t likely to be pretty for the economy.

More From FORTUNE

Last week, buried deep in the ugly details of Countrywide Financial Corp.’s earnings release, was the news that its $32.4 billion portfolio of prime HELOCs — home equity lines of credit — had begun to rapidly deteriorate. The reeling Calabasas, Ca.-lender was forced to take a $704 million charge related to homeowners’ inability to pay back equity they extracted from their homes.

The structure of these loans appears to spell trouble for Countrywide and other home lenders with big home equity loan books. According to an overlooked Moody’s Investors Services note that came out last Wednesday, once a certain threshold of losses is achieved in a home equity loan securitization pool, the bond holder is paid off ahead of the lender.

What’s worse is that it’s difficult to see how large a lender’s exposure is to home equity loans. Known as rapid amortization, this risk is treated as a contingent liability for Countrywide and other home equity loan lenders and is carried off balance sheet, until deterioration occurs and the lender goes on the hook for the loans. Countrywide is the nation’s biggest home equity lender, with around 9% of the market.

In the short-term, this is just another blow for a investors in the financial sector. Longer-term however, it looks like a lot of ready cash is getting taken away from homeowners, at least in California. Coupled with rising unemployment, this could pose a major headache for already strapped homeowners.

To head off more defaults, Countywide sent out letters to 122,000 homeowners last week informing them that their home equity credit lines were shut down since their estimated home values had dropped below their loan amounts.

Right behind Countrywide was Chase Home Lending, which notified borrowers in Los Angeles, Imperial and Orange Counties that they could tap their credit lines for no more than 70% of the value of their house. Previously, the limit had been 90%.

The Calculated Risk blog, which specializes in real estate and mortgage finance issues, has estimated that mortgage equity withdrawals for the fourth quarter totaled $145 billion. If tightening lending standards are put rapidly into place for home equity loans, it is not inconceivable that $50 billion or more of spending power is instantly removed from the economy.

In other words, at least one-third of the recently passed $150 billion stimulus package is already canceled out.

(C) 2008 Cable News Network. A Time Warner Company. All Rights Reserved.

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Federal Housing Administration (FHA) note bankruptcy third-party origination revolving debt cooperative (co-op) title search

Filed under: News, Refinancing

By Jon Prior

The expanded Home Affordable Refinance Program will likely reach more underwater borrowers than its architects originally thought.

“We said we would double the number from what we’ve already done under HARP, which would mean we’d do another 900,000 under the expanded program. I think we’re actually trending above that now,” said Andrew Bon Salle, head of the Fannie Mae underwriting and pricing group, in an interview.

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The Federal Housing Finance Agency eased HARP eligibility requirements last year for Fannie Mae and Freddie Mac mortgages. It reduced upfront fees, eased buyback risk and eliminated the 125 percent loan-to-value ratio ceiling. Most banks implemented the changes in March.

Read more on this story at HousingWire.

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Source: http://realestate.aol.com/blog/2012/06/25/harp-architects-expect-to-reach-1-million-more-homeowners/

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Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

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Con tres cargos federales en contra un policia de Eagle Pass fue arrestado por agentes del F.B.I. de acuerdo con el Departamento de Justicia de los Estados Unidos. Fue el jefe de la policia local, Juan Antonio Castañeda, quien dio a conocer el arresto que se realizó la semana, pero…

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May 4 28th Annual Old Town Cinco de Mayo Old Town comes alive with a celebration of art, culture, and history of the 1800’s.  Ride in a horse drawn stagecoach, enjoy music, carnival rides and games, car show, chalk art, riding and roping show, Mexican wrestling, and other activities.  Visit museums and specialty shops, and dine on delicious food and drink. Free. Time:  Fri.  5:00 pm – 10:00 pm / Sat. 11:00 am – 10:00 pm / Sun. 11:00 am – 5:00 pm Location:  Old Town State Historical Park, San Diego Ave. For more information visit www.fiestaoldtown.com May 5 The Salvation Army 3rd Annual Spring Fling Festival This festival will feature dozens of local crafters in indoor and outdoor booths.  There will also be live musical entertainment and a fun carnival zone for the kids.  A special feature will be the Silent Auction featuring donations from many San Diego businesses.  Time:  9:00 am – 3:00 pm Location:  The Salvation Army, 4170 Balboa Ave., Clairemont For more information visit www.sandiegocitadel.com May 5-6 Escondido Renaissance Faire Travel back to the 16th century and the glories of the reign of Elizabeth the First.  Activities include several of Will Shakespeare’s new plays, battle pageants, music in the streets, jugglers and hundreds of costumed re-enactors performing in this giant outdoor play.  There is an admission fee, which covers all entertainment. Time:  10:00 am – 6:00 pm Location:  Felicita County Park, 742 Clarence Lane, Escondido For more information visit www.goldcoastfestivals.com/Escondido.html May 6 16th Annual Festival Cinco de Mayo – Chula Vista Festival guests will receive a true cultural experience as they sway with Mexican dancers, peruse the work of local artisans and taste authentic south of the border cuisine.  Tune in for a Mariachi Band Battle at one of the two festival stages in addition to the popular Kids Fun Zone.  Come join the 30,000 community members who enjoy this celebration of Hispanic culture. Time:  11:00 am – 7:00 pm Location:  Downtown Chula Vista, Third Avenue For more information visit http://www.thirdavenuevillage.com May 6 Carlsbad Spring Village Faire The largest one day fair in California.  Features hundreds of exhibitors with a little of everything such as arts and crafts, antiques, clothing, a large variety of food stands serving International foods, and children’s rides.  Time:  8:00 am – 5:00 pm Location:  Carlsbad Village For more information visit www.kennedyfaires.com/carlsbad May 11-13 11th Annual Gator by the Bay A family event featuring Zydeco and Cajun bands, Blues bands and community musical groups performing on multiple stages.  Enjoy Cajun and Creole food, cooking demonstrations, strolling entertainers, dance lessons, and more. Time:  Refer to website for schedule Location:  Spanish Landing Park at Harbor Island – Harbor Drive – San Diego Bay For more information visit www.gatorbythebay.com May 12 Asian Cultural Festival of San Diego Enjoy musical performances, costumed dancing, martial arts, craft-making, merchandise booths, cultural exhibits and cooking demonstration. There will be a food court, picnic area, and a kid’s area. Time:  10:00 am – 6:00 pm Location:  Liberty Station – NTC Park, near Cushing & Roosevelt Rds, Point Loma For more information visit www.asianculturalfestivalsd.com May 13 4th Annual Mother’s Day Fancy Dress Swim Fundraiser for World Swims Against Malaria.  Mothers will “dip” in the ocean wearing their Mother’s Day finest.  A five dollar donation is all that is needed for this World Swim Against Malaria. Time:  10:00 am – 11:00 am Location:  Oceanside Pier, Oceanside For more information visit www.onesandiego.org/ May 16-20 Ocean Beach: Beach Ball Festival An outdoor live music, action sports, and microbrew festival.  Lots of food, merchandise, beach volleyball games, a big ferris wheel, a waterslide, mechanical bull rides and a human hauler contest. Time:  Wed.-Fri. 12:00 pm – 10:00 pm / Sat. 10:00 am – 10:00 pm / Sun. 10:00 am – 5:00 pm Location:  Ocean Beach: Saratoga Park, Veterans Plaza, Lifeguard & Municipal Pier Parking Lots For more information visit www.oceanbeachsandiego.com May 19 24th Annual Tierrasanta Patriot’s Day Celebrate Armed Forces Day with a delicious BBQ dinner under a shaded canopy while listening to pleasant music.  There will be  a beer & wine garden, game area for kids, raffles, dancing, plus a fireworks show. Time:  4:00 pm – 9:00 pm Location:  Tierrasanta Recreation Center, 11220 Clairemont Mesa Blvd., Tierrasanta For more information call 858-268-0044 May 19-20 7th Annual Encinitas Sports Festival Join 300 of your closest friends and family for two days of sports and fun in Encinitas. The City becomes a sports destination the weekend before Memorial Day and you don’t want to miss it.  Triathlons, Duathlon, Bike Tours, 5K Run, Kids and Family 1K Walk/Run, Moonlight Beach Paddle & Swim, and a 2-day sports expo. Time:  Refer to website for schedule Location:  Encinitas – various locations, refer to website For more information visit www.encinitasrace.com/esff.html May 20 Annual North Park Festival of the Arts An explosion of arts, culture and entertainment with live entertainment, specialty booths, food court, beer garden, Kid’s Art Beat, and tons more!  Time:  10:00 am – 6:00 pm Location:  North Park – University Ave. & 30th St. For more information visit www.northparkfestivalofarts.com May 20 26th Annual Navy’s Original Bay Bridge Run/Walk A running and walking event across the Coronado Bay Bridge is a rare opportunity, and now is the time to do it!  The route begins downtown and proceeds across the bridge to the Coronado Island to Tidelands Park, concluding with fun festivities. Time:  7:00 am – 12:00 pm Location:  Bayfront Hilton Parking Lot, One Park Blvd., San Diego For more information visit www.mwrtoday.com May 20 19th Annual Sicilian Festival Celebrate Sicilian-Italian American heritage and enjoy delicious cuisine from local restaurants in a festive setting in Little Italy.  Music, beer, wine, dancing, ethnic art & craft items to browse.  Free. Time:  10:00 am – 6:00 pm Location:  Little Italy, Downtown San Diego For more information visit www.sicilianfesta.com May 20 Escondido Street Faire This faire will feature live entertainment as well as over 600 booths showcasing arts & crafts, unique clothing, and international foods.  Children’s rides, rock climbing wall, and more! Time:  10:00 am – 6:00 pm Location:  Downtown Escondido, Grand Ave. between Center City Pkwy and lvy. For more information visit www.kennedyfaires.com/escondido May 26 Santee Street Fair Live bands, entertainment, food, arts & crafts, vendor booths, beer garden.  In just three years the Santee Street Fair has become one of the best events in town.  Over 300 food and vendor booths, 3 stages of live music and entertainment, and fun rides. Time:  10:00 am – 7:00 pm Location:  Santee Town Center – behind Santee Trolley Square, Mission Gorge Rd., Santee For more information visit www.santeestreetfair.com May 27 Annual Ethnic Food Fair A cultural food festival at Balboa Park will be offering a delicious assortment of ethnic foods along with entertaining costumed performances.  Free. Time:  10:00 am – 5:00 pm Location:  Balboa Park, House of Pacific Relations International Cottages For more information visit www.sdhpr.org May 27 Vista Strawberry Festival Strawberries will be the main event along with a 5K Fun Run and Kids Runs, as well as 200+ vendors at our street fair, carnival rides, a Strawberry Pie Eating contest, Strawberry Idol, Ms. Strawberry Shortcake, and much more!  Free admission. Time:  7:00 am – 4:00 pm Location:  Downtown Vista, 127 Main St., Downtown Vista For more information visit www.vvba.org

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There are a few things just as frustrating as looking for a new home: dating, car shopping and job searching. When it comes time to look for a new place to live, the options seem endless and nothing seems to fit your budget, needs and wants. It would be wonderful to go home hunting if [...]

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bill of sale Truth-in-Lending line of credit assessed value note rate loan executor

Filed under: News, Credit

Rumors of Arthur Livingston’s demise have been greatly exaggerated — and they’re taking a toll on the South Carolina man’s credit rating.

Bank of America, Livingston’s bank of choice for the past 14 years, mistakenly declared him dead to the three major credit bureaus in May 2009, TV station WIS in Columbia, S.C., reports. As a result, Livingston has been stonewalled by lenders — who refuse to loan money to the deceased — and his dream of building a new home stymied by a 2&frac12;-year-old error.

Livingston said Bank of America promised to resolve the issue within 30 days of his complaint. It’s been more than three months now and the problem has yet to be resolved, he told WIS.

“I spend every free minute I have either sending a message, calling, faxing or just, you know, wondering if it is going to be resolved today,” he told the station.

While Livingston’s case is an extreme example, credit report errors are a very common — and costly — problem for Americans looking for a line of credit.

According to the U.S. Public Interest Research Group, one in four reports can have an error serious enough to hurt one’s chances of getting new credit. This is especially troublesome for prospective homebuyers today as mortgage lenders have, since the housing bubble burst, drastically raised the bar on qualifying for a loan.

Tips to Avoid a Costly Credit Report Error

The most basic step to protecting your credit score is regularly checking in with the three major credit bureaus. And contrary to a slew of popular commercials claiming to provide free credit reports, the only federally endorsed credit reporting site out there is annualcreditreport.com.

Once an error is identified, be prepared to maneuver through an entirely different bureaucracy. “Thousands of [dispute] letters get thrown out,” Glamis Haro, a lending manager at a New York credit union, told AOL Real Estate.

To ensure that your complaint isn’t lost to the void, Haro suggests sending any correspondence with the credit bureaus by certified mail with a return receipt request.

Under the Fair Credit Reporting Act, the bureaus are required to respond to your complaint within 30 days of receipt.

In Livingston’s case, however, because Bank of America has yet to correct the error on their end, his options remain limited. Bank of America told WIS that the issue is under investigation, but resolution has yet to be reached.

See also:
How to Dispute Credit Report Errors
Bank of America Plaza to Sell at Foreclosure Auction
80 Cent ‘Typo’ Almost Cost Man Home

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Source: http://realestate.aol.com/blog/2012/02/08/arthur-livingston-thought-dead-by-bofa-very-alive-and-frustrat/

survey debt loan officer appreciation assumption HUD median income homeowners association

Filed under: News, Advice, Buying, Investing, Selling

Give it to central Indiana real estate agent Jeanne Clarkson for thinking outside the lockbox. The former eBay power seller has packaged three buildings and posted them to the popular online site where the public can buy just about everything — including, thanks to her, a bank building in the town of Anderson, Ind.

Clarkson (pictured) told AOL Real Estate that she’s sold $6 million in commercial real estate using eBay’s classifieds section, and is frankly a little surprised that other agents haven’t caught on to the idea. Right now, she’s got a package on the site priced at $4.5 million that includes a good portion of Anderson’s skyline: the First Merchants Bank building (pictured below), the Union Building (shown above) and a property at 11th and Jackson streets; she already sold the Union Building once using eBay. While there’s plenty of real estate being auctioned on eBay, her listings appear under eBay’s classifieds section.

Clarkson, who is the broker of Elan Real Estate Inc., told WRTV Indianapolis that it’s important to use technology in marketing real estate. She said she’s already heard from people around the world on this listing. Her client is a California investor.

And we suppose if eBay fails, she could always try Craigslist.

Also see:
Realtors’ Latest Challenge: A Surge of Squatters
Low Refi Rates Are Great, But Not for Everyone
How to Buy Foreclosures
VIDEO: All About Short Sales

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Source: http://realestate.aol.com/blog/2011/09/06/agents-commercial-property-sale-on-ebay-includes-a-bank/

recording prepayment penalty multidwelling units Treasury index Realtor® late charge grantor

Filed under: News, Refinancing

By Jon Prior

Even if the promising mortgage refinancing plan that President Obama announced Tuesday night passes Congress, critics say it will fall short of solving the deepest housing problems.

The White House did not release great amounts of detail, but the plan would help homeowners current on their mortgage to refinance down to a lower rate and save an average $3,000 a year on payments. The plan widens the Home Affordable Refinance Program to include mortgages not guaranteed by Fannie Mae and Freddie Mac and would tax banks to raise funding.

Analysts said Wednesday morning that the program could cost as much as $10 billion and could reach between 2 million to 3 million borrowers.

Read the full story on HousingWire.

Also see:
Bernanke: Fed Should Help Turn Foreclosures Into Rentals
Principal Reduction Better Than Short Sales, Report Says

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Source: http://realestate.aol.com/blog/2012/01/25/obama-state-of-the-union-plan-inadequate-for-housing/

closing Fair Credit Reporting Act Real Estate Settlement Procedures Act (RESPA) mortgage jumbo loan principal balance 401(k)/403(b)

Filed under: News, Investing

As the Iowa Republican caucus hogs the media spotlight, a less reported but perhaps equally compelling story continues to unfold in the Hawkeye State.

While most of the country continues to struggle with the aftershocks of the housing meltdown, Iowa is riding the wave of a remarkable real estate boom. Republican primary candidates in Iowa needn’t fear broaching the subject of real estate as they might in other states: farmland prices in Iowa have skyrocketed more 30 percent in the last year alone, MSNBC reports.

The rapid climb in prices continues a trend that has emerged over the last few years in states across the grain belt. Prices of farmland in some parts of Iowa rose 23 percent last year, The New York Times has reported. The spike has been driven by a boom in crop prices. Buoyed by rising demand for ethanol, the price of corn, for example, has tripled in only half a decade, reports MSNBC.

Some land in Iowa recently sold for $20,000 an acre, setting a state record.

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Reminiscent of the real estate boom leading up to the 2007 meltdown, the rise in farmland prices has some experts cautioning that Iowa and its neighbors could be incubating the country’s next real estate bubble. The Times reports that the president of the Federal Reserve Bank of Kansas City, Thomas M. Hoenig, told the Senate Agriculture Committee in February that farmers could suffer from a drop in real estate prices if grain prices were to fall and interest rates tick up.

But the risk of implosion may not be as high as some fear, since many land buyers are paying hefty cash down payments for their purchases. MSNBC was told that buyers are often required by banks to pay for close to half of the land that they buy upfront. Strict lending standards like that stand in stark contrast to those that fed the subprime loan crisis.

For the moment, Iowa appears to be poised to enjoy the current rise in real estate prices.

Meanwhile, real estate markets for much of the rest of the country are still sputtering. The Standard & Poor’s/Case Shiller Index released last week reported that real estate prices dropped in 19 of 20 cities from September to October. And as of October, banks looked to be on track to repossess 800,000 homes by the end of 2011.

One recent report from the National Association of Realtors has offered a glimmer of hope on an otherwise bleak horizon, however. According to the report, pending home sales in November reached their highest level in a year and a half, possibly indicating the beginning of a market turnaround.

Also see:
How Large We Live: Average Home Sizes Across the U.S.
2011 in Real Estate: The Top 11 News Stories

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PUD (Planned Unit Development) recording prepayment penalty multidwelling units Treasury index Realtor® late charge

Filed under: News, Economy

Scott Hostetler didn’t bother to tell his family that he’d applied online to have their house in Buena Park, Calif., turned into an advertising billboard for the price of their monthly mortgage payment. He figured that it was like taking a chance on the lottery — and who ever expects to win the lottery? Then, about three weeks ago, he got the call from Romeo Mendoza, head of the advertising company that made the offer, Brainiacs From Mars.

Mendoza delivered the shocking news: The Hostetlers’ home had been selected out of some 38,000 applications to be the first to be branded with a very special custom paint job, a deal that would cover the monthly mortgage payment of $2,000 for at least three months and perhaps up to a year — depending on when either the homeowners or the ad company wants to end the contract. At the end of that time, the company promised to restore the home’s exterior to its original appearance.

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Until then, though, it would display the bright orange and green colors of Brainiacs From Mars (formerly known as Adzookie). The company signage in the photo above is just temporary; while Buena Park is OK with the paint job, city zoning laws prohibit permanent advertising signs on residences.

Hostetler and his wife, both of whom are deaf, have lived in the home for about 18 years. They both work for Goodwill Industries — he’s an information technology manager and she’s a rehabilitation counselor. Their 17-year-old daughter (pictured with her parents) lives at home; they also have a son who is a freshman at Rochester Institute of Technology in New York.

The Hostetlers say that they plan to use the extra money sent directly to them monthly from Brainiacs to pay down some bills, replace Scott’s old Chevrolet Suburban, and maybe go on vacation.

Getting Help Into the Hands of the People Who Need It Most

The idea for the Billboard House came to Mendoza, the company’s chief executive, as he picked up his 7-year-old from school. Every day they would pass a sign that advertised a bank-owned property. And when he visited his mother in Las Vegas, there were areas so hard hit by the housing crisis that, he says, they seemed to him like ghost towns. Government can only do so much, he says, while corporations have the money, and this seemed to him like a promising way to get some of that into the hands of people who needed it the most.

While Mendoza figures that about 10 percent of those who applied to have homes turned into billboards “wanted to have a good time” with it and were attracted to the novelty, he insists that “we’re here to help the homeowners.” Applications “have come from literally everywhere,” he says, though he has noticed a higher amount from the “foreclosure states” — Florida, Nevada, and California. Applications have also come from Japan, Spain, Russia, the Czech Republic and many other countries. One city councilman reportedly invited Brainiacs From Mars to paint an entire row of homes in his town.

The advertising company has plans for 100 such homes, Mendoza says, but a goal of 1,000 if they can attract the advertisers. In areas like Buena Park that prohibit advertising signage, they’ll stick to the brand’s colors, but where community zoning allows more, signs would go on the homes.

What Will the Neighbors Think?

While there is no set of particular qualities that Brainiacs is looking for in a homeowner, Mendoza says the Hostetlers are the kind of close-knit family that “felt right” to help debut the promotion. As for official requirements, the applicants must own the home, and local zoning laws must allow the paint job. Selected homeowners also have to be prepared for neighbors’ reactions.

You might think the company would be looking for homes in high-traffic areas, but the Hostetlers’ 1960s house is inside a quiet development of tract houses, at least a block away from main streets and within view of a neighborhood park. You might get a glimpse of the back of the home from nearby Knott’s Berry Farm, though, as you prepare to plunge from the top of its Xcelerator or another towering thrill ride. The house is practically in the shadow of the amusement park, one of Southern California’s top tourist attractions, whose roller coasters serve as a backdrop for the neighborhood.

After its official unveiling today, the house could become its own neighborhood attraction — along the lines of a elaborate Christmas display, the Hostetlers say. While AOL Real Estate was there on Sunday, members of a motorcycle club that was gathered at a house across the street were taking pictures, and a quartet of teens on skateboards stopped to take a look.

As for the neighbors, they found out last week, on the first day of painting, when Brainiacs From Mars went door-to-door to the closest houses to explain why the olive green and chocolate brown color scheme that the Hostetlers say had earned them compliments and admiring inquiries was dramatically changing. The neighbors were shocked at first, the Hostetlers say, but “that went away, and now they understand.” One neighbor even wanted to have his house turned into a billboard, too. Though another walked by and said, “Your house was so pretty before. What did you do to it?”

Vivian Largent, who lives across the street and a few doors down, says that she thinks the new paint is fine as long as it’s temporary. She would have some concerns about property values if it stayed up for the long term, though.

Largent said that she knows people who could really use some help on their mortgage right now, and had asked Brainiacs how those she knows could apply. (You can find the application on the Brainiacs website.)

She also wondered why the advertising sign that the roofers has posted in her front yard, as they’d worked on her home, was allowed, while the signage that Brainiacs From Mars attached to the Hostetlers house for media photographs had to be taken down.

Before:

After:

Correction: An earlier version of this story incorrectly identified the college that Scott and Elizabeth Hotstetlers’ son attends.

Also see:
How the Foreclosure Settlement Could Affect You
Home Swap: Exchange More Than Affection on Valentine’s Day

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Source: http://realestate.aol.com/blog/2012/02/13/billboard-house-advertises-a-way-out-of-the-housing-crisis/

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Filed under: News, Advice, Financing

Pay more now for a chance to save much more later? That’s the idea behind paying “points” on a mortgage loan. But it doesn’t necessarily make sense for every homeowner.

Mortgage points provide an opportunity for borrowers to lower their monthly mortgage payments by paying a lump sum at a loan’s closing in exchange for a lower mortgage interest rate over the course of a loan.

Mortgage points are a smart option for borrowers who plan to stay in the same mortgage and not refinance for a relatively long period of time. But points are not recommended for borrowers who are likely to relocate or refinance in the not-so-distant future.

Borrowers pay points in order to lower their mortgage interest rates by a certain amount. The cost of one point is equal to one percent of the mortgage amount. In the case of a 30-year fixed-rate mortgage, paying one point will typically lower your interest rate by somewhere around one eighth of a percent, according to Tim Dwyer, chief executive officer of Entitle Direct, a title insurance company.

So if borrower A paid one point on a $200,000 mortgage with what would have been a 4 percent interest rate, she would lower her interest rate to 3.875 percent (4 percent — 1/8th percent) for the cost of $2,000.

A good way of looking at points is to view them as an investment that “yields a return for the longer you stay in your house,” mortgage expert Jack Guttentag writes.

If Borrower A stays in the same mortgage for only a few years before selling her home or refinancing, she may end up not saving enough in monthly payments to justify paying the $2,000 upfront. But if she stays in the mortgage for a longer period of time, she eventually breaks even on her investment and enjoys saving money every month from there on out.

“If the points are reasonable, I want to pay that upfront and enjoy the interest rate savings over 10 years because I know I’m not going to refinance,” Dwyer says. But if “you’re a young couple” and “you know you’re going to have more babies, you know you’re going to be moving out,” then you should avoid paying points.

Banks may offer 10 or more point combinations on any given loan, Guttentag writes, and borrowers often don’t end up selecting the option that aligns most with their interests, simply out of ignorance. You can use a point calculator to find out how long it would take to break even using different point combinations.

In a perfect world, borrowers would pay points only if it benefited them in the long run. But, in fact, many borrowers pay points out of necessity. Why?

Lenders will only allow borrowers’ monthly mortgage payments to equal up to a certain percentage of their monthly income. Often they will only approve loans for borrowers whose monthly mortgage payments would not exceed 28 percent of a borrower’s monthly income.

Paying points allows a borrower who otherwise wouldn’t qualify for a loan because of income limitations to lower his or her monthly payment to the extent that the bank is willing to make the loan.

Some banks offer “negative points,” a rebate paid by lenders toward a borrower’s closing costs. “Negative points” lower closing costs for a mortgage, but raise its monthly interest rate. They can be a good option for borrowers who are hard-pressed to cover closing costs with zero points or who intend on moving or refinancing in a few years.

Follow Teke Wiggin on Twitter (@tkwiggin), follow @AOLRealEstate, or connect with AOL Real Estate on Facebook.

See also:
Mortgage Jargon in Simple Terms
Real Estate Terms and What They Mean
Don’t Be Surprised by Expenses of Homeownship

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

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Source: http://realestate.aol.com/blog/2012/05/16/mortgage-points-pay-more-upfront-to-lower-your-interest-rate/

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Filed under: News, Financing, Refinancing

By Nick Timiraos

The Obama administration is revamping a program that’s designed to let more homeowners refinance their mortgages even if they don’t have any equity. This isn’t a new program, but instead attempts to turbo-charge an existing federal initiative called the Home Affordable Refinance Program.

Here’s a look at some frequently asked questions:

What is HARP? The Obama administration in 2009 rolled out HARP to refinance borrowers whose loans were backed by Fannie Mae and Freddie Mac and who were current on their payments. The idea was simple: If you were making your payments on time but didn’t have enough equity to refinance, you would be able to lower your rate without having to pay down your mortgage balance or take out mortgage insurance.

Initially, the program was limited to borrowers who owed between 80% and 105% the value of their homes. In mid 2009, the program was opened to borrowers who owed up to 125% the value of their homes.

But a series of unforeseen “frictions” have led fewer borrowers to take up on the offer of lower rates. Fewer than 900,000 homeowners have refinanced under HARP over the past 2&frac12; years, and just 72,000 of those borrowers have loan-to-value ratios between 105% and 125%.

Click here for the rest of the Q&A.

See also:
Obama to Announce Refi Help for Underwater Homeowners

More from the Wall Street Journal:
Ginormous Dallas Hotel Set to Open
Is the Housing Crisis Making People Sick?
At Zucotti Park, Love Under the Tarps

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.

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Source: http://realestate.aol.com/blog/2011/10/24/obamas-refinance-plan-explained/

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Reports indicating a stumbling economy have prompted a whirlwind of talk from Republicans, economists and President Obama on just how to right the economy once and for all. According to Labor Department figures, May payrolls grew at the slowest pace in eight months. Further government data indicates that the economic recovery is slowing. In responding [...]

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DIY candles are easy to make, lovely, can be scented or colored for the occasion, and make thoughtful gifts that won’t elicit that “Oh. You MADE me a present?” reaction you’re hoping to avoid while saving money during the holidays.

These can be made for any occasion, but in this post, we’ll talk about how to make them specifically as Christmas gifts as an example.

Read more…

The post DIY Candles: Make 24 Personalized Christmas Gifts for $3 Each appeared first on DailyPerk.

Source: http://dailyperk.perkstreet.com/diy-candles/

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Filed under: Home Equity

Home values sank, the stock market plummeted, 401K plans were depleted, and today many of the nearly 40 million Americans in retirement are discovering they may have not been financially prepared for a doomsday scenario. One remedy many Baby Boomers, with their record-high level of home ownership, may not have considered is a home equity loan or home equity line of credit (HELOC). For more than half of all U.S. households, home equity — the

Home values sank, the stock market plummeted, 401K plans were depleted, and today many of the nearly 40 million Americans in retirement are discovering they may have not been financially prepared for a doomsday scenario. One remedy many Baby Boomers, with their record-high level of home ownership, may not have considered is a home equity loan or home equity line of credit (HELOC).

For more than half of all U.S. households, home equity — the value of a home minus the debt owned — accounts for at least 50 percent of net wealth, according to the Survey of Consumer Finances, published by the Federal Reserve. Statistics also reveal — according to an annual government report, A Profile of Older Americans — that the over-65 population is swelling and an increasing number of retirement-age Americans are being forced back to work. More money problems are on the way, with half of U.S. households in jeopardy of being able to sustain their lifestyle through retirement, says the Center for Retirement Research of Boston College.

Home equity loans were traditionally used has a last resort for retirees, but a growing number of seniors are tapping their home equity earlier, either as a financial buffer, to sustain income security, or to improve debt management.

How can retirement-age homeowners tap into their home equity in a responsible and fruitful way?

For retired Americans who have a small mortgage or no mortgage and low levels of debt, leveraging the equity in their home — either through a home equity loan or a second mortgage — is a way to free up immediate cash.

“It would be cheaper than taking out an unsecured loan, where the rates are generally higher,” said Clifton Thomas, a CPA in San Francisco, though he cautioned that this be determined on a case-by-case basis and is not a viable route if monthly payments cannot be covered.

Increased longevity has many over age 65 worrying that they may outlive their retirement resources. For those who do not have income from employer-sponsored pension plans, longterm financial security may be unusually challenging. Some financial planners recommend deferring Social Security payments and taking out a term home-equity loan or reverse mortgage to help fund expenses for a few years, when they will qualify for maximum Social Security benefits.

Another common fear of older Americans is having to spend their last years in a nursing home. But better overall health and the growth of community living has drastically reduced that risk. Today, most people would prefer to live in their homes for as long as they can. As a result, preserving the value of one’s home has become more important — and having a financial cushion helps older homeowners make repairs such as faulty furnaces and leaky roofs before they become more serious. A HELOC, which requires borrowers only to pay interest on the amount they use from the loan, is well-suited for this purpose.

As older Americans struggle to pay rising household expenses, their use of credit cards has expanded, according to the Survey of Consumer Finances. Today, nearly 50 percent of families aged 55 to 64 carry credit card debt. Debt consolidation may be a good way to fend off personal bankruptcy. Shifting credit card debt to a HELOC is a good way to lower monthly expenses, since interest rates for home equity debt are much lower than than those for credit cards.

For those seniors with existing mortgages, monthly payments make it hard to enjoy later life. In this case, a home equity loan or reverse mortgage can allow homeowners to defer monthly mortgage payments on a conventional mortgage.

Experts say that it’s never too late to make a financial plan that will access your current assets and expenditures, and project your future cash flow. Michael Gray, a CPA in San Jose, Calif., recommends that seniors hire a fee-only financial advisor rather than one who is commission-based, who may (or may not) benefit from clients moving money in and out of different investments.

For qualified homeowners, a home equity loan and a HELOC will likely be among the options recommended. As part of a responsible retirement plan, both may provide financial security that previously seemed unobtainable.

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Source: http://realestate.aol.com/blog/2010/12/09/home-equity-loan-a-good-option-for-cash-strapped-retirees/

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Like debt consolidation scams, homeowners who are struggling to stave off foreclosure have been prime targets for scams in the recent years. Now, the Better Business Bureau is warning consumers of yet another new twist on mortgage relief scams. The BBB reported that homeowners have been receiving official-looking letters from out-of-state law firms that invites [...]

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They may not be hopeful that the U.S. economy will rebound any time soon, but most Americans are optimistic about the future of their own personal finances. A newly released national survey conducted by KRC Research for the Certified Financial Planner (CFP) Board of Standards, Inc. finds that 83 percent of the 1,011 adults polled [...]

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Filed under: News, Advice, Economy, Financing, Foreclosures, Refinancing

Let’s hold off blaring the triumphant trumpets just yet for President Obama’s plan to allow holders of underwater loans to refinance at a lower rate through revisions in the Home Affordable Refinance Program.

What this change does is amend the loan-to-value ratio in a refinance. By removing the cap on how upside-down you can be, it will allow more people to avail themselves of the lower interest rates out there. You still will owe more than your house is worth, but you can pay less for the privilege.

Here’s what the proposed plan doesn’t do:

1. Reach many people.

The only homeowners who will qualify are those who are current on their underwater loans and have loans that are backed by Fannie Mae and Freddie Mac. (No jumbo loan holders or those with mortgages backed by the FHA or the USDA.) That’s an estimated 800,000 homeowners who can avail themselves of this. To put things in perspective, most experts say there are between 8 million and 9 million people in the foreclosure pipeline — and some put that number as high as 11 million. So 800,000 is hardly a game-changing number.

It is, perhaps somewhat ironically, about the same number of homeowners that HARP has helped to date. When the program was announced in 2009, we were told it would help 4 to 5 million underwater borrowers. To date, just 838,000 homeowners have been able to refinance through HARP. So even if this new tweak doubles the number of people helped, it’s still just a fraction of the number of people in trouble.

2. Reach the people who need it the most.

To qualify, you can have missed only one mortgage payment in the previous year and none in the past six months. The group being targeted here are those who are potential strategic defaulters — folks who go to sleep at night calculating whether it makes financial sense for them to just walk away. They have demonstrated that they can afford the loan because they are current on their payments.

The people who are not being helped here are the ones who can’t afford their mortgages anymore. These are the people at risk of losing their homes because of job loss, income reduction, illness, divorce or adjustable rate loan resets.

So to recap: If you are heading for foreclosure because you choose to be, this could change your mind. If you have no choice in heading for foreclosure, tough noogies to you.

3. Reduce anyone’s principal loan amount.

If your house is worth $200,000 and your loan amount is $250,000, you will still owe the bank $250,000 — just at a lower interest rate than what you originally signed up for. The underlying assumption here is that the housing market will recover sufficiently so that in a few years you will no longer be upside down on your loan — or if that doesn’t turn out to be the case, Obama won’t be running for re-election anymore and you become the next guy’s problem.

4. Help the unemployed.

The days of stated income — or no doc — loans are long gone. Consider them something you’ll tell your grandkids about, along with cell phones without cameras. To qualify here, you’ll need pay stubs, W-2s, tax returns and other documentation. And of course if you don’t have a job, you won’t likely be able to refinance your home into a lower-rate loan.

Here’s a little salt in the wound: Many long-term unemployed keep themselves afloat by working multiple freelance jobs. This puts them in the self-employed category — and even if they’ve managed to stay current on their mortgage, qualifying for the HARP relief would prove difficult because of their fluctuating income.

So the bank would rather keep them at a higher interest rate and wait for them to stumble than let them refinance into a lower interest rate. The fact that they have been making their payments faithfully doesn’t matter. The tweaks to HARP don’t tweak in the direction of the unemployed.

5. Pump more money into the economy.

The underlying logic behind this measure is that the money that those 800,000 lucky homeowners aren’t spending on their mortgage each month is money they’ll spend on other things — eating out, traveling, shopping — and that such spending is good for the economy.

Sorry, but this one has me laughing all the way to the credit union, which is where I suspect most of those homeowners will be headed too. First of all, their numbers are just too thin to make a statistical difference. This isn’t a “jump-start the economy” measure by a long shot. At best, it will allow a proverbial handful of homeowners to splurge on the occasional Friday night pizza, assuming there is enough left over from the “windfall” savings after they pay their health insurance and grocery bills.

Also see:
Obama’s Refinance Plan Explained
The Mortgage Fix That Can Save the Economy
Republican Candidates: Short on Housing Policy, Long on Houses

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Source: http://realestate.aol.com/blog/2011/10/24/viewpoint-obamas-drop-in-the-bucket-idea-for-housing/

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Q: I have heard that we should get pre-approved for a mortgage loan before looking at homes in Washington or Oregon. Why is a pre-approval the important first step in the home buying process? A: I am glad that you asked that question because getting pre-approved for a home loan is the best way to [...]

Source: http://www.hassonblog.com/2011/11/why-is-pre-approval-important/

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