Archive for April, 2010

OPINION: Obama Administration Housing Program Offers Homeowners Huge Loan Reductions!

Tuesday, April 27th, 2010

Sympathy keeps pouring out of the Obama administration for troubled homeowners that owe more than the current value of their homes. Not a government to tolerate the unfairness of financial distress, it has announced another housing program for under-water homeowners.

Taking a $14 billion chunk of the existing $75 billion foreclosure-prevention program, the new program asks that banks and lenders reduce the amount that homeowners owe on their loans and offer them new loans. The new loans will be backed by the Federal Housing Administration.

In exchange for slashing the debt owed by the borrowers and participating in the administration’s existing foreclosure prevention program, the lenders will receipt incentive payments from the government.

The plan also includes three to six months of temporary aid for borrowers who have lost their jobs. There will be additional payments designed to give banks an incentive to reduce payments or eliminate second mortgages such as home equity loans – a problem that has blocked many loan modifications.

Will this, the latest and greatest government housing rescue program really work? Well, so far all the prior Obama administration housing rescue plans have been dismal failures. Personally, I don’t see this current plan making a significant difference.

Many people purchased homes way out of line with their realistic budgets. Plus, a large percentage of recent homeowners who had their home loans modified are once again behind in payments.

Question:  In your opinion, will this prolong the housing recovery?

Posted in Anti-Foreclosure, DFW area not dominated by distressed listings, Distress housing, Uncategorized | No Comments »

Washington Report: Anti-Foreclosure Program

Thursday, April 15th, 2010

by Kenneth R. Harney

The Obama administration came out with a score card on its anti-foreclosure program last week, and there’s just one word for it: Minimal.

Of roughly 1 million financially-distressed home owners who’ve been given mortgage payment reductions through three month “trials” under the HAMP program, that’s the Home Affordable Modification Program, just 116,000 have ended up with permanent loan modifications from participating lenders.

At the same time, sixty thousand borrowers who entered trial payment plans have flunked out or been kicked out for a variety of reasons.

Contrast these numbers with the bold predictions from the Treasury Department and President Obama nearly a year ago, when they said the foreclosure avoidance efforts would help three to four million homeowners over the coming couple of years.

The administration itself appears to recognize that the report card doesn’t look great. Assistant Treasury Secretary Michael Barr acknowledged to the Associated Press that “we were attempting to set realistic expectations, but I think we failed to do so.”

Among the complications bogging down HAMP efforts so far:

  • The original design of the program allowed homeowners to request three month trial modifications with relatively little documentation of their situations, including incomes. Many of them managed to get through their trial periods, but then haven’t been able to satisfy program requirements that they document their incomes to their lenders.
  • Though the program can reduce payments to 31 percent of monthly incomes, it cannot deal with increasingly common situations where job losses have eliminated or sharply curtailed household incomes. Many of those borrowers, housing analysts say, are likely to end up in foreclosure.
  • The program is limited to monthly payment reductions, not actual cuts in the principal balances owed by borrowers. While that formula works for some distressed homeowners, it doesn’t do anything for the estimated 15 million plus owners who are underwater on their mortgages, stuck with houses valued less than the mortgage balance.

Critics of the administration’s plans have argued for months that foreclosures cannot be averted on a massive scale until lenders and investors agree to permanently write off a portion of the borrowers’ principal debts.

As Sedona, Arizona homeowner Kevin Miller, who’s underwater on three properties including his main home, told Realty Times last week: “Someone’s got to recognize that it was not just buyers who made a mistake (on pricing and timing.) Lenders did too.

They share part of the blame because they lent out money on real estate that often wasn’t worthy anywhere near what they thought.

“They need to lower people’s principal before we all walk away.”

Posted in Anti-Foreclosure | No Comments »

Home Inspections

Tuesday, April 6th, 2010

All About Home Inspections

If you are in the market to buy a home, then it is time to understand the basics of home inspections.

According to the National Association of Realtors, 77 percent of home buyers had a home inspection prior to purchasing their home, and Realtors report that 84 percent of home buyers requested a home inspection as part of their contract.

When choosing a home inspector, you want to find a qualified and experienced professional. In this field, that means having client contacts or testimonials to back up their work, as well as the appropriate state license to operate as a home inspector. Not every state requires a license, and if not, you can ask whether of not they are a member of the American Society of Home Inspectors or the National Association of Home Inspectors. In your inspector interview, ask about cost, whether they offer a guarantee on their work, how long their inspection should take, and how you’ll be receiving the report (written or otherwise).

Some inspectors charge a flat rate, but the cost can vary depending on the size of the job, the expertise level of the inspector, among many other factors. As a ballpark, an inspection can cost around $400.

You should expect a typical inspection to take several hours. Smaller homes take less time than larger or older homes. If you really want to be invested in this process, it is recommended that you are present for the inspection. Ask for things to be explained as you go – including how certain things work and where valves, switches, and such are.

Be sure to ask for a written report, and consider asking for price estimate for repairs. A repair estimate is a good negotiation tool when it comes to settling on a final sale price for a home.

It is important to note that a home inspection is not a gold stamp of approval that your new home will be in perfect working order. Things break and items will need repaired. Your home inspector is not liable for repairs or damages.

You can, however expect an inspection of hundreds of items, including: Structural elements, exterior evaluation, roof and attic, plumbing, systems and components, electrical, appliances, and the garage.

Published: April 5, 2010

Tags: , , ,
Posted in Uncategorized | No Comments »

Decorate Your Home like a Pro

Tuesday, April 6th, 2010

Tips to Decorate Your Home like the Pros

by Phoebe Chongchua

When you walk into a well-designed model home that’s been skillfully constructed architecturally and then professionally staged, it provokes emotion, draws you into the home, and makes you want to stay — with any luck, forever. Deal done. Contract signed. Home purchased.

A lot of us selling our homes aren’t, of course, starting from scratch. But, with spring in the air, many homeowners get the itch to remodel or at least redesign the interior of their homes both for comfort and for greater marketability and value when they place their houses for sale. For some, interior decorating is a fun, exciting process but for others, it’s challenging and causes a lot of stress. There are some simple tips to help homeowners decorate like a pro. “I think that when people start the remodeling process they are overwhelmed with the amount of selections and things that are out there,” says Kelly Smiar, interior designer for Marrokal Design & Remodeling.

The first important tip from the pros is to narrow down the options. Find something in your home that’s really working for you. Smiar says once you discover that then all the other materials and products brought into the home support the style or theme that’s already working in your home. Then it’s a matter of just building on that. Another vital tip is to begin with one room, complete it and then move to the next. Keep a notebook handy and fill it with ideas, wish list, color schemes, room themes, notes, receipts, and any other information necessary for your home decorating project.

In the world of interior decorating, not all changes are equal. For instance, let’s work on the kitchen because this is a high-interest level for buyers and for homeowners it’s very often where people gather when visiting—food attracts all of us! In the kitchen, cabinets are very important in homes, says Smiar, “because they’re furniture that you don’t change.” Since cabinets will stay in your home for a long time, choosing the right finish is a big part of creating the overall look and feel of a well-decorated room. Some popular cabinet finishes are painted rather than stained wood, creating a vintage or traditional look that’s both appealing and durable. Experts recommend neutral colors that provide a solid base to build on. Then color in back-splashes, countertops, and flooring really coordinates and perks things up in the room without becoming overwhelming.

Smiar reminds homeowners that the cabinets, countertops, flooring, and back-splashes are just part of the overall look. Next comes the furniture and that adds a style and colorful dimension that must be considered when making interior decorating changes. “[Homeowners] are going to have furnishings and décor that is going to add to that so you don’t want to overwhelm it before they even have their things brought into the home,] she says.

Another great way to add appeal to a home and tie in the cabinets is with a custom range hood. There are many different looks but, if you don’t overlook the hood, you’ll find that you can blend your entire kitchen together in a seamless fashion by integrating colors, textures, and design with a hood. Rather than a stainless steel hood, a custom hood in a subtle finish can soften the feel of the kitchen and integrate well with the cabinets.

In any redecorating, remember functionality and aesthetic appeal should be equal parts to create a design that’s comfortable and inviting. Getting expert help can make the process go faster and flawlessly.

Published: April 2, 2010

Posted in Home Improvement, marketing, seling | No Comments »