Thursday, April 2, 2009
by lheraty
Today many people are interested in Short Sales as a way to avoid Foreclosure. If you are interested in knowing more about a somewhat complicated transaction, here are the three very uncomplicated things lenders look for when qualifying a short sale:
- Financial Hardship: This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure.
- Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple. Total Monthly Income - Total Monthly Expense = Monthly Shortfall.
- Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.
For more information about Short Sales see About.com.
Monday, March 30, 2009
by lheraty
Here are some more important things that anyone considering a Reverse Mortgage should know:
- FHA Reverse Mortgage loan limit is $625,500
- Eligible property types include single family residences, condos and town homes, one to four unit properties and newly constructed homes that can provide proof of completion and a Certificate of Occupancy.
- Participants are required to complete a HUD Counseling Session
- Participants must show a fully executed Sales/Purchase Contract
- Participants must provide documentation of cash to close (source of funds and current balance)
- FHA prohibits Discount Points, Interest Rate Buy Downs, Closing Cost assistance and Builder incentives
- Subordinate, bridge and personal loans are not allowed. Either are cash advances from credit cards or Seller Financing.
- Insurance that is required: twelve months of Hazard insurance premiums and twelve months of Flood insurance is required, both payable at closing.
For additional information about Reverse Mortgages see the Reverse Mortgage website.
Friday, March 27, 2009
by lheraty
Did you know that in our country someone turn age 50 every 76 seconds? We are living in a rapidly ageing population, so thank goodness the Department of Housing and Urban Development insures the Reverse Mortgage. It was created to assist seniors live out their golden years in comfort without fear of losing their homes.
Seniors aged 62 and older who qualify for the Reverse Mortgage may either buy or refinance an existing home. Participants may choose between receiving non-taxable monthly income, a lump sum payment or making no payments at all. Insurance, real property taxes and association fees must be paid and users must certify each year that they are the principal residents of the home.
The home may be sold or refinanced at any time. Heirs will be given the option to refinance or sell the home. If the home is sold, the Reverse Mortgage balance will be paid off first and the remaining balance will be distributed however the late owners have designated.
Tuesday, March 24, 2009
by lheraty
On February 17th, 2009 President Barack Obama signed into law the American Recovery and Reinvestment Tax Act of 2009. It extends tax credits for certain energy efficient additions or replacements in existing homes only. Be aware that the maximum amount of homeowner credit for ALL improvements combined is $1,500, during 2009 and 2010. Following is a list of items that qualify:
- Windows and Doors
- Insulation
- Roofs (either metal or asphalt)
- HVAC
- Water Heaters
- Biomass Stoves
For the following items through the year 2016 on existing homes as well as new construction, tax credits are available at 30% of the cost with no limit:
- Geothermal Heat Pumps
- Solar Panels
- Solar Water Heaters
- Small Wind Systems
- Fuel Cells
For the Tax Year 2008, the only energy efficiency improvements eligible for tax credit are:
- Geothermal Heat Pumps - 30%, up to $2,000
- Solar Water Heaters - 30% up to $2,000
- Solar Panels - 30% up to $2,000
- Small Wind Energy Systems - 30% up to $4,000
- Fuel Cells - 30% up to $1,500 per .5kW of power capacity
To claim this credit you must file IRS Tax Form 5695 with your 2008 taxes.
Saturday, March 21, 2009
by lheraty
Reverse Mortgages are available to anyone who is over 62 years of age, owns their home and uses it as their primary residence. It is a very good option if you need cash and want to stay in your home for as long as possible.
In a nutshell, Reverse Mortgages work by allowing borrowers to swap the equity in their homes for cash, while still owning and living in the house. Currently, the only place to secure this type of financing is through the Federal Housing Administration’s Home-Equity Conversion Mortgage program, or HECM. The HECM loan limit is currently $625,500, and there are many things that will determine how much a borrower will qualify for. Some of these things are the age of the borrower, current interest rates and the property’s value.
If you do qualify, you have several choices on how to receive your money. You can be paid a lump sum up front, opt for a monthly cash payment, or choose a combination of the two. The only downside to Reverse Mortgages are the fees. They are high, ranging from $7,000 to $20,000. You will also have to pay an origination fee and an insurance premium. On the upside, this insurance does guarantee that your total debt can never be more than the home’s value.
For more information and a list of brokers go to ReverseMortgage.org.
Wednesday, March 18, 2009
by lheraty
Putting your house on the market is always a challenge in that you must look for ways to make it the most appealing it can be to potential buyers. Beyond the tried and true rules of emptying closets and keeping all rooms tidy and clean, here are some things you may not have thought of that can have major impact during a showing or open house.
- If you have a small room in your home that you would like to appear more spacious, paint it the same color as the room it is attached to. This will convey a more seamless, spacious feel. Another trick to convey spaciousness is to keep all window treatments in small rooms the same shade as the walls.
- Paint your sun room an attractive shade of green. It really does help to bring the outside in!
- If you have a narrow room, add wall shelving. This gives the space depth, without crowding out occupants.
- If you are upgrading to sell, choose Eco-friendly materials. Buyers are showing more interest in homes with these materials. For example, consider cost-efficient and “green” cork flooring instead of hardwoods.
- Consider breaking up a finished basement into “zones”. For example, furnish one area for reading, another area for a bar, one for games, one for a workspace with a desk and another for lounging in front of the television.
- If your kitchen is outdated and you do not want to renovate, replacing old appliances is highly suggested. Studies show that sellers recoup every penny spent on new appliances!
Sunday, March 15, 2009
by lheraty
People can make small changes in everyday life to reap the benefits of huge water savings. The Environmental Protection Agency’s experts say that not only are our drought-prone states in big trouble with water shortages, but that sooner or later the rest of the country will be affected by shortages as well. Shocking but true: the average American citizen uses 1,600 cups of water per day. To do your part to help conserve this precious resource, here are some tips.
- To see if your toilet is leaking water, simply place a drop of food coloring into the tank. If this color shows up in your toilet without flushing, unfortunately you’ve got a leak. Fixing this leak will save you 200 gallons of water per day.
- Installing an aerator on kitchen or bathroom faucets cuts water use all the while keeping a smooth and high-pressure flow. Or, go for the gusto and install a high-efficiency shower head.
- Install a high-efficiency toilet. They use anywhere between 20% and 60% less water than regular toilets.
- Install a water re-circulating pump or even a tank less water heater.
- Upgrading to an ENERGY STAR washing machine will save you 7,000 gallons of water per year. This is enough water to fill three backyard swimming pools!
- When doing your spring planting, choose low-water use plants as well as drought-tolerant grass, ground covers, shrubs and trees.
- Mulching also cuts down on the need to water.
- Install timers and rain switches/sensors on your sprinklers .
- Consider a drip irrigation system for your garden.
If everyone in the United States installed water-efficient appliances, our country would SAVE 3 trillion gallons of water, which equates to 18 billion dollars per year!
Friday, March 13, 2009
by crussell
Sale and commission subject to bank approval, fixer upper with new roof, HVAC and water heater, lots of cosmetic needed, barns with 2 stalls with electricity and waer and new fencing, no heat upstairs.
Country home on 2 acres with barn, and horse stables. This fixer upper home needs some tender love and care but has plenty of hidden charm and is priced to sell. Hardwood floors, natural woodwork, and dormer bedrooms in a country setting makes this house a great find. This is a short sale and is subject to bank approval.
Friday, March 13, 2009
by crussell
Sale and commission subject to bank approval. Sold 'as is', taxes do not reflect exemptions, Den could be dining room, pre-approval with offer.
Liquidation sale. Brand spanking new construction!! Priced below appraised value. Come home to this tranquil haven nestled in beautiful Hickory Ridge. This spacious 2050 square foot ranch with 3 car garage offers 3 bedrooms and 2 full baths. Open concept great for family and friends. Cozy up by the fireplace. All neutral decor through out. Move Right In!!
Thursday, March 12, 2009
by crussell
Sale and commission subject to bank approval, make an offer, sold 'as is,'taxes do not reflect improvements or exemptions, Beautifully maintained home, close to 2 hospitals, pre-approval with offer.
Liquidation Sale! Priced far below market price, this is your chance to "steal" a fabulous home at a rock bottom price. Brand new construction and appliances makes this two story house move in ready. 1952 square feet provide plenty of room for entertaining in seperate family and living rooms. Gather the family in the cute kitchen nook for snacks and fun. A large master suite creates a tranquil retreat, and your whole family will appreciate having two and a half baths! Located in Amelia Station, you'll be close to shopping areas as well as health care facilities and entertainment. This is the deal you've been looking for. DON'T LET IT PASS BY YOU!
