State to help homeowners

  

The state is expanding help for homeowners struggling to pay their mortgages.

Governor Rod Blagojevich says a pool of money lenders are putting up to help homeowners refinance their mortgages has grown to $310 million.

The Governor also announced that he is working with state Sen. Jacqueline Collins (D-Chicago) to introduce legislation that will make sure borrowers are notified when they’re at risk of losing their homes, and given a grace period of up to 60 days to work with counselors on payment or refinancing options before a lender can move to foreclosure.

The Illinois Homeowner Assistance Pool can help homeowners get into fixed-rate mortgages and stabilize their payments to help save their homes. You can get more information at: http://www.ihda.org/ 

Easter Greetings

 

I wish you all a very peaceful and blessed Easter.

7 Deadly Sins Home Sellers May Be Committing

Here is what the Accredited Home Staging Council refers to as the Seven Deadly Sins of Staging. Some Home Sellers may be guilty of many of these potential deal breakers.

1. Failure to thoroughly deep clean your home – especially the kitchen and bathrooms. A dirty house is an immediate buyer turn-off and the two most important areas are the kitchen and the bathrooms.  If there has not been a deep cleaning of all counter and tile surfaces to a spotless condition, you stand the chance of having the buyers walk right back out the door.  Another critical area is the floors – all carpets and rugs.  Without question they must be either replaced or steam cleaned as a dirty carpet is the number one buyer turn-off.  If they’re hardwood and scratched or marred you might want to have them refinished.

2. Failure to de-clutter your entire home.Clutter, both inside and outside, makes it extremely hard for the buyers to visualize moving in.  The disorganization will directly affect the buyer’s ability to focus on the house and they will most likely overlook its key selling features.  In addition, clutter has the affect of making the house appear smaller than it is as the “open” feeling is gone.
 
3. Failure to de-personalize your entire home.The seller’s home is their comfort zone and it is filled with all of their personal memorabilia, but to the buyers it represents a huge distraction.  People are generally curious and when you want them to notice the beautiful entryway they may be focused on all the family pictures on the piano or all the “stuff” stuck to the front of your refrigerator.  Your objective is to change the view of the house from the sellers “lived in home” to the buyer’s “ready to move in house.”

4. Failure to use neutral colors when painting both inside and outside.While the seller’s favorite colors may be the exact complement to their living style, the shades and hues may be a complete distraction and turn-off to the buyers.  Their favorite wall paper may not be on the buyer’s “best” list.  The best way to present a home is for the wall colors to be painted a neutral color.  This goes for the outside as well – a loud or non-neutral color may just keep the buyers from even stopping to see the inside.

5. Failure to spotlessly clean the windows and window coverings.Nothing is more distracting to a buyer than to be looking at a view through a dirty window.  This area, as in cleaning the carpets is best left up to the experts.  The same can be said for the kitchen and bathroom counters and tile.  A little investment here will pay big dividends … what you don’t see is often more important than what you do see.

6. Failure to make the pets disappear.While pets are a loving member of the seller’s family, for the buyers their presence, food and boxes are generally a turn-off.  Every trace of their presence should be removed so, once again, the buyers are not distracted from the prime objective – viewing the house in the best possible light.

7. Failure to spruce up the number one calling card – the landscaping.A healthy, neat, trimmed and well maintained yard and flower beds are the keys to getting the buyers up to the front door.  The last thing they want to see is the seller’s “stuff” all around an uncut and untrimmed lawn.  A little effort in this area with perhaps the help of a professional gardener will pay big dividends.  A well maintained exterior sows the seed of a well maintained home in the mind of the buyer.

If you have questions about this topic or any other real estate topic, send your question to: info@NewHomeExecutives.com

Tent City

The meltdown in the US mortgage market has led to record foreclosures and forced thousands from their homes. In few places is it worse than southern California, where the BBC reports on an extreme consequence of the downturn, but one that some observers fear could grow.

These are the people who have lost their homes or have become homeless for various reasons and had nowhere to go. They tried asking for help from their city, state and federal government agencies to no avail. They sleep outside in sleeping bags or in tents if they are lucky enough to have them. Some are lucky enough to have a job and contribute to the well being of their family, with some going as far as providing food for other families as well. Everyone in Tent City tries to help each other as much as possible.

Why is it that our elected officials can afford to bail out the banks and investment firms, who still have billions of dollars, but can’t find any funding to help these people and the thousands more who have lost it all, get back on their feet? I am not trying to make any political statement, but I am wondering what the rest of the world thinks of us Americans when they see news stories such as this one by the BBC:If you have questions about this topic or any other real estate topic, send your question to: info@NewHomeExecutives.com

What you should know about selling a vacant home

 

 You’re selling your primary residence to move into another. The goal should be to sell the house as quickly as you can. and with good planning and the help of a good Realtor, you should be able to get a fair and reasonable price. 

Vacant rooms can look smaller than furnished rooms. This is because there is no furniture to provide perspective. Staging your home can make your unoccupied house seem as lived-in as possible. Leave behind a few pieces of furniture – some chairs, an end table, and lamps. Rather than giving an impression of austere living, it can make a room look simple and elegant. And it will help prospective buyers get a better idea of how well their furniture will fit the space or even go with the decor. Giving your vacant house a lived-in look also has other advantages, such as discouraging vandals, loiterers, or uninvited squatters. Make sure a few lamps are set on timers to go off and on at certain times of day. Keeping your lawn mowed and hedges trimmed is another way to lure buyers and shun unwelcome guests. 

First impressions are so important in real estate. So keep the front of your vacant home neat. Put on a fresh coat of paint if necessary. If you’re still in the area, stop by often to cut grass, pull weeds, rake leaves, sweep walks, shovel snow, and do routine yard maintenance. If your new home is too far away to make this practical, consider hiring a house-sitter, soliciting neighbors and friends to keep an eye on things, or using lawn and home-maintenance services. Your real estate agent should be able to recommend some viable options.   

Consider putting in motion sensor lights and an alarm system to protect your vacant house from unwelcome guests. Maintain your homeowner’s insurance for added protection. But check with your provider on the appropriate coverage – some insurance policies change dramatically when a home is vacated and your coverage may be very different, or even lapse. Don’t assume you are covered if the home is vacant just because you are paying premiums. Make sure all mail is forwarded and newspapers are stopped – piles of papers in the drive are a tell-tale sign no one is around. But limited time is all you’ll need with the right steps. After all, selling an empty house shouldn’t leave you with an empty feeling. 

 If you have questions about this topic or any other real estate topic, send your question to: info@NewHomeExecutives.com

HUD Proposes Respa Reform to Help Consumers Shop Lower Costs

Washington, DC – In an effort to significantly improve the complicated, unclear and costly home buying process, U.S. Housing and Urban Development Secretary Alphonso Jackson proposed mortgage reform designed to help consumers better understand their loan terms so that they can shop more effectively for the largest purchase of their lives.

HUD’s proposal reforms the more than 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and improves disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. For the first time ever, HUD is proposing that mortgage lenders and brokers provide consumers with a standard Good Faith Estimate. By more openly disclosing the key elements of the loan and by controlling fee inflation, the Department seeks to provide consumers with enough information to allow them to shop more effectively for the lowest cost loan. HUD’s economic analysis finds that by offering consumers clearer, more certain cost estimates, the average borrower will save nearly $700.

 “A lot of the mortgage problems we see today are directly related to the fact that few people fully understand this process,” said Jackson. “Buying a home can be very intimidating. Consumers have had no assurance that the loan terms and closing costs they are offered will reflect what they confront at the settlement table, and that’s been one of the factors driving the current housing downturn. Our proposal fixes that. We owe it to the American homebuyer to give them the information they need to make smart choices.”

Brian Montgomery, HUD’s Assistant Secretary for Housing, added, “It’s not right that millions of consumers go to the settlement table without fully understanding the mountain of paperwork they’re asked to sign and, on top of that, expected to pay thousands of dollars in closing costs for services they’ve never heard of. This new Good Faith Estimate will give families the tools they need to understand what they’re getting into before they sign on the dotted line.”

 In light of recent increases in loan defaults and foreclosures, the need for reform is imperative. When President Bush announced his comprehensive plan to address rising foreclosures last August, he pledged to offer new mortgage rules that would help families to avoid getting into trouble in the first place. This proposed RESPA rule makes good on that pledge.HUD is proposing to offer consumers a standard Good Faith Estimate (GFE) that will substantially enhance disclosure of all important aspects of the loan, including:·     The interest rate and monthly payment; ·     Whether the interest rate and principal balance can increase and by how much; and ·     Whether the loan has a prepayment penalty or balloon payment.

The proposed Good Faith Estimate would consolidate closing costs into major categories to prevent “junk fees” and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. In addition, HUD’s new proposed rule would specify the charges that can and cannot change at settlement. If a fee changes, HUD proposes to limit the amount it can change. HUD also proposes to modify the HUD-1 settlement statement to help consumers compare the anticipated charges on the Good Faith Estimate and their actual charges.

 The Good Faith Estimate would also require that lender payments to mortgage brokers (often called Yield Spread Premiums) be disclosed. It is HUD’s belief that these payments are directly dependent on the interest rates that consumers agree to and therefore ought to be disclosed. To ensure that HUD’s new proposal would not create a consumer bias against brokers, the Department did rigorous consumer testing and found the proposed Good Faith Estimate helped consumers to select the lowest cost loan more 90% of the time, regardless of whether the loan was originated by a lender or a broker.

Finally, HUD is proposing that settlement agents read a “closing script” to borrowers at the settlement table and that a copy be provided to the borrower. This closing script would ensure that the settlement agent not only compares the borrower’s estimated and actual charges, but would detail the key terms of the loan. HUD’s extensive consumer testing found borrowers appreciated the enhanced disclosures, believed the loan details on the closing scripts were clear and understandable, and reacted positively to having the scripts read out loud.

 Legislative Changes to RESPATo further bolster consumer protection and to ensure uniform and consistent enforcement of RESPA, HUD intends to seek legislative changes to the Act that will complement the regulatory improvements made by the rule. Currently, RESPA does not provide HUD with enforcement mechanisms for some of the most important consumer disclosures and protections. A lack of enforcement authority and clear remedies for violations of critical sections of RESPA negatively impact consumers and diminish the effectiveness of the statute.

HUD will seek the authority to impose penalties for violations of specific sections of RESPA, including Section 4 (provision of uniform settlement statement); Section 5 (GFE and settlement costs booklet); Section 6 (loan servicing); Section 8 (prohibition against kickbacks, referral fees, and unearned fees); Section 9 (title insurance); and portions of Section 10 (regarding escrow accounts). In addition, HUD proposes the authority for the Secretary and State regulators to seek injunctive and equitable relief for violations of RESPA; require delivery of the HUD-1 to the borrower three days prior to closing; and establish a uniform statute of limitations applicable to governmental and private actions under RESPA

 If you have questions about this topic or any other real estate topic, send your question to: info@NewHomeExecutives.com

Before You Buy A Condo

  

7 Questions You Must Ask Before Buying a Condo 

You’ve found your dream condo, and you’re ready to relax among the mango trees and swaying date palms. Hold everything. To keep from getting stuck with a lemon, you’ve got to do some homework. Here are the seven most important questions you need to ask before buying a condo.  

1. “What’s the Beef?”Take a look at the minutes of the condo association board meetings to see what the owners have been griping about. If everyone was complaining about the faulty plumbing or the gardener’s absence, you know that the complex is having management difficulties. Even if there aren’t any complaints, reading the minutes will reveal the sorts of projects that are under way at the complex — projects the seller may have neglected to mention. 

 2. “Who’s Been Naughty and Who’s Been Nice?” Find out the delinquency rates of present owners. If people aren’t paying their association dues on time, that is either a sign of discontent or an indication that the association might be under funded.  

3. “How Much Is In the Repair Fund?”Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99 Best Residential & Recreational Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don’t pay much in maintenance may be in a complex that either is not being kept up well or is living beyond its means.  

4. “Can You Cover Me?”If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association’s policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. The smart condo owner will insure his or her personal belongings, along with any other items within the unit that are not covered by the association’s policy. If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you trust and who understands the state laws.  

5. “Does the Association Present Any Legal Problems?”Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there’s so much more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do they make sense? Are they consistent with the state laws? Giese, the author, once found that the association bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any owners have filed suit against it.  

6. “Is the Complex Renter-Friendly?”If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked on as an amendment. Does the management company find renters for you? If so, do they get enough good renters? Ask other tenants about their experience. In addition, ask to see the association’s rental lease, and have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.  

7. “Am I My Community’s Keeper?”Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-management can lead to more hassles for owners — especially those who live thousands of miles away. If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night

Content from Yahoo Mortgage Center.

If you have questions about this topic or any other real estate topic, send your question to: info@NewHomeExecutives.com

 

 

Client Number 9 ?

 

With all the publicity Eliott Spitzer, the disgraced Governor of New York is getting from this headline, I suppose a lot of people are wondering who were Clients 1-8?  The press is hard at work to be the first to publish the list. According to reports from the British press; The Duke of Westminster is Client #6.

Who is Client # 10? Answer: It’s not basketball legend Michael Jordan, according to Jordan’s attorney Frederick Sperling. In order to end rumors that unnamed Client No. 10, who requested an Emperors Club Girl for March 4 in Chicago, may have been Jordan, Sperling tells Chicago Sun-Times gossip reporter Michael Sneed: “I have just received confirmation from Assistant U.S. Attorney Rita Glavin in New York that our client Michael Jordan is neither a subject nor a target of this investigation.”

There must be a lot of nervous politicians and high profile celebrities wondering if they are going to be named as customers of the Emperors Club. Eliott Spitzer should have known better. He should have gone to Las Vegas instead of Washington D.C. for his fun, because what happens in Vegas stays in Vegas!

How I Work For You

 

I want to take a minute to clarify just how I work so that you have no misunderstandings about who I am and the kinds of services I provide. Most importantly, I want you to understand that when you are looking to buy a home, I will work for you as your Buyer’s Agent. I will not work for any developer or seller of any kind.    

I am sure you are aware, developers and sellers hire brokerage firms to market and sell their property.  These firms employ sales representatives whose responsibility and obligation it is to market and sell their property as quickly as possible and at the Highest Possible Price.   In contrast, I do not have any such responsibilities or obligations to any sellers. 

As an Exclusive Buyer’s Agent, I only represent you, the buyer.  It is my responsibility to meet all of ‘your’ goals.  In so doing, I will evaluate your individual needs and preferences.  I will conduct searches for you to locate the homes that are most likely to meet those needs.  I will schedule appointments for you with sellers/developers and their agents to view the homes and communities that you want to visit.  

Throughout our search I will help you evaluate both the pros and cons of each home we consider, including the value of the neighborhood or location of the home.  I will help you negotiate the best possible price and terms of your new home purchase and prepare the necessary sales documents. In short, I will be working for you and your interests throughout the home-buying process. So, how do I get compensated for my services?  The brokerage firm who represents the seller in the transaction compensates me. All of these brokerage firms agree to share a portion of the commission they receive from the sellers with other licensed real estate agents who will represent the buyer in the sale of the property. If that is not clear, let me know. The point is that you will not be paying for the services I provide you. 

However, I will ask you to compensate me in one small way.  I will ask you to recommend my services to all of the people you care about: your friends, family and associates.  Referrals from the people I have helped are the heart of my business. Please call me with any question you may have. I look forward to making your new home buying experience a rewarding one.

 

If you have questions about this topic or any other real estate topic, send your question to: info@NewHomeExecutives.com

Attention Shoppers: Your Realtor is in Aisle 3!

Finally, relief is here for those Realtors and real estate consumers who have had to contend with the agent and mortgage lenders that were merely “order takers”. The hot real estate market of the past few years has come to an abrubt end and so has the careers of the agents and mortgage brokers that jumped in to make some quick money. Although, I don’t wish those folks any ill will, I must say that I am not sorry to see that they have  moved on to their previous careers, where I suppose they are better qualified.   

I have wanted to write a post mortem about that type of agent for some months now, but I have not been able to put it into the propert context. So, I will share with you a blog I stumbled upon today. It is written by  Paul Slaybaugh, a Scottsdale, Arizona Realtor. When I read the blog I almost fell out of my chair with laughter.

He writes:Let’s face it, folks, the Real Estate business has gotten a lot tougher here in Scottsdale in the last year or so.  The number of listings is up. The number of buyers is down. 

 

Mortgage guidelines have tightened to make obtaining financing more challenging. With the flood of recent licensees who joined the ranks of Realtors in the last few years to capitalize on the seismic boom of 2004-2006, many are left to wonder, “Now what?”  I come to you today to ask for your support.  For the cost of a cup of coffee per day, you can make a difference in an opportunistic Realtor’s life.

 

Enjoy the rest of Paul’s Article: http://localism.com/article/278789/Attention-Scottsdale-Shoppers-Your-Realtor-is