My New Blog

The days of getting a quick easy mortgage are clearly over.  A year ago, mortgage money was flowing.  Predatory lenders signed people up for mortgages without paperwork, gave out loans that covered 100% of the home's value and weighed them down with outrageous payments that exceeded their income.  The subsequent fallout from those loan practices has been tremendous, leaving lenders scrambling to clean up a mess of foreclosures and defaults.

They've also tightened the purse strings - especially when it comes to the subprime market.  Lenders are demanding documentation, downpayments and turning back to more traditional methods of qualifying loans.  Those with a long history of paying bills on time won't be affected, but first time buyers or buyers with spotty credit histories need to get their paperwork in order.

Here are 5 ways to make buying after the sub-prime crunch a reality:

1. Find a banker or mortgage broker you can trust.
    
2. Improve your credit rating: even if you're a year or more away from making a purchase, it's never too early to start.
    
3. Clean up your credit report: take care of any problems or errors on your report.
    
4. Educate yourself: learn the terms and take time to build your team of experts.
    
5. Work with a real estate professional: a good real estate professional will always save you time and money in a real estate transaction versus going it alone.

Buying a home will probably be the single biggest financial investment you'll ever make but it doesn't have to be the biggest risk you ever take.  With the right real estate agent, financing, information, and financial management, you will be on the path to a future that includes home ownership.

You may be able to save hundreds of dollars a year on homeowners insurance by shopping around. You can also save money with these tips.

• Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
• Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Persons over 55 years of age or long-term customers may also be offered discounts.
• Insure your house NOT the land under it. After a disaster, the land is still there. If you don't subtract the value of the land when deciding how much homeowner's insurance to buy, you will pay more than you should.
• Don't wait till you have a loss to find out if you have the right type and amount of insurance.
• Make certain you purchase enough coverage to replace what is insured. "Replacement" coverage gives you the money to rebuild your home and replace its contents. An "Actual Cash Value" policy is cheaper but pays only what your property is worth at the time of loss-your cost minus depreciation for age and wear.
• Ask about special coverage you might need..You may have to pay extra for computers, cameras, jewelry, art, antiques, musical instruments, stamp collections, etc.
• Remember that flood and earthquake damage are not covered by a standard homeowners policy. The cost of a separate earthquake policy will depend on the likelihood of earthquakes in your area. Homeowners who live in areas prone to flooding should take advantage of the National Flood Insurance Program.
• If you are a renter, do not assume your landlord carries insurance on your personal belongings. Purchase a separate policy for renters.

The number of foreclosures soared in 2007, with 405,000 households losing their home, according to a report released recently.  That's up 51 percent from the 268,532 homes that were repossessed in 2006.

Total foreclosure filings soared 97% in December alone compared with December of 2006, according to RealtyTrac, an online seller of foreclosure properties.  For the year, total filings - which include default notices, auction sale notices and bank repossessions - grew 75%.

More than 1 percent of all U.S. households were in some stage of foreclosure during 2007, up from 0.58 percent the year before.

The increase in foreclosures has come about despite very low interest rates, as well as government, private enterprise and community advocate efforts to forestall the worst of the problems.

This is because sales are very slow in many housing markets and prices are down, leaving many troubled borrowers unable to sell in order to repay their mortgage debts.

If you're considering buying a foreclosed property, there is a lot you should know if you have never done it before.  Yes, there are a lot of great deals in the market these days, but there are different stages of foreclosure and the more you know, the more you can protect yourself.

Pre-foreclosure is when the homeowner still owns the property and knows there is potential for foreclosure. They’re likely not current on their payments and are in danger of destroying their credit and losing any equity they have.

The second option is buying at auction.  Approach this method with caution - there is a lot of risk such as liens on the title and unknown repairs.  Also, cash is typically needed at this stage if you beat the bank's bid and win the auction.

The last option is post-foreclosure.  At this point, the home is known as REO - real estate owned property by a bank or lender.  The bank won at the auction and is now selling the home to recoup as much money as possible - at least what is owed on the property.  The bank will most likely hire a local real estate agent to put it on the market.  The longer the home is on the market, the more willing the bank is to work with you on selling price.  Keep in mind, banks do not want to be in the business of owning real estate – they want to get rid of it as quickly as possible.

Here are a few things to keep in mind when purchasing a foreclosed property:

1. Get a full approval from a mortgage lender who has verified your income and assets. This will give you more negotiating power.
    
2. Pick a zip code you are interested in and do research on what homes are selling for and the recent trends with property values in that area.
    
3. Get an inspection done and make your offer contingent on satisfactory results from the inspection.
    
4. Determine potential repairs and their costs.
    
5. Remember you have the upper hand in negotiations when it comes to the bank paying closing costs and making repairs.

Be cautious and patient in the foreclosure buying process.  If handled properly, you could find a great home in which you may have some instant equity.

Considering a foreclosure?  Have any questions?

As the number of foreclosures rises, homeowners unable to make their mortgage payments are facing another growing threat: "foreclosure rescue" scams.

State and federal authorities say they are investigating an increasing number of homeowner complaints about fraud and deception by companies that engage in lending to financially distressed borrowers seeking to avoid foreclosure. Several states have recently passed or are contemplating new laws to provide more protection against dishonest businesses trying to take advantage of already vulnerable homeowners.

The problem centers on foreclosure-rescue companies, which target homeowners behind on their mortgage payments through newspaper ads or fliers claiming services such as "fast cash," "equity funding" and "no credit check." According to some recent cases filed by consumers and regulators, the companies mislead borrowers into believing they can save their homes from foreclosure in exchange for a transfer of the title for a year or two. The companies promise borrowers they can stay in their homes by paying rent for that period, giving them time to catch up financially until they can buy back their property. Often unknown to the borrowers, however, the companies may have sold their homes to a third party, stripping out the home equity and leaving the borrowers on the verge of eviction.  

Is it possible to go out and buy a home on your own without the assistance of a professional real estate agent?  Sure.  But it's not a good idea, and here's why…

Using a realtor to help in buying a home will make the entire process easier and will help to make sure you get the best deal possible.  Using a professional agent  means all of the legal issues involved in home buying are taken care.

A real estate agent or broker can significantly narrow down the home buying process by helping you determine exactly what your needs and desires are for the new home.  They are more capable than you are of negotiating on the price of the home.

Home buyers rarely pay out-of-pocket fees for the help of a broker.  Therefore you're getting professional advice and a better deal on your new home without any added costs.

If you are going to be purchasing a new home in a city you are unfamiliar with or in a neighborhood you don't know a lot about, a real estate broker can provide you with important information about neighborhood demographics and things like schools in the area.

Professional real estate brokers and agents have access to online listings of homes that you yourself may not have ready access to, making it possible for the broker to find a home for you to buy that you may not even know exists on your own.

There are a lot of details to buying a home and you may not be familiar with them, especially if this is your first time as a home buyer.  A real estate broker can help you through every step of the process so you understand what is going on and don't get cheated anywhere along the way.

The benefits to using a real estate broker or agent are obvious.  Buying a home is not something that you're trained to do, so it makes sense to work with a professional who is trained.  While there are certainly many areas of life that can be quickly learned and approached with the do-it-yourself mentality, home buying is not one of them.  There are just too many legal details involved and too much at stake - like your home!!

We'd love to hear your comments about the benefits of using a professional agent or broker when searching for a home.  Leave your comments and we'll respond if you'd like for us to.

As you plan for the new year, don't forget to plan ahead for your home improvements and maintenance projects.  Danny Lipford, the home improvement expert for The Weather Channel and CBS's "The Early Show" has come up with a month-by-month plan for homeowners that not only reminds you of what needs to be done and when, but also shows you ways to save money, and may even give you a chance at finally winning the "Best Looking Lawn" contest for your neighborhood.

 January

 Start a to-do list. Walk through your home, jotting down projects and maintenance problems you notice or that have been on your mind. Carry a screwdriver and a can of machine oil so you can immediately take care of minor issues, such as loose door handles and squeaky hinges.

 Declutter your closets. Throw away anything you don't need. Buy additional shelves, hooks and boxes to organize everything that remains. Next: Declutter the laundry room, another often disorganized, small space.

 Consider your flooring. January is a slow month for carpet sellers and floor refinishers, so it is a good time to get a deal on a replacement or spruce-up.

February

 Examine bathroom and kitchen caulking. If you find gaps between the tub or shower and the floor and walls, or between the countertop and backsplash, re-caulk.

 Check under sinks and around toilets and showers for signs of leaks. Also repair dripping faucets — if you don't know how, a local handyman may do the job at about half the price of a plumber. Save plumbers for bigger, more complex jobs.

 Call to have your central air-conditioning serviced. Set up the appointment now for March or April to avoid the summer rush. The service will make sure your compressor and air handler are working well and that the condensate drain is clear.

March

Winter's ending. It's time to…

Search for peeling exterior paint. Harsh winter weather can cause paint to chip, peel or flake, exposing wood to the elements. Touch up bare spots now to prevent moisture problems later. First, scrape and sand any loose paint, then prime and add at least one top coat.

 Prep your lawn. Apply a pre-emergent fertilizer to your grass in March (or as soon as the snow melts), and you'll have fewer weeds and healthier grass come April. A local nursery can recommend a fertilizer appropriate for your yard.

 Examine the foundation. Take a walk around the exterior and interior of your foundation (if accessible) in search of cracks. Small cracks should be filled with caulk and monitored to make sure they aren't widening. If you see large cracks, call a building contractor or structural engineer to inspect. Check cement walkways and driveways. If you find a crack, use a leaf blower to clear out debris, then seal with caulk made for your type of surface (asphalt, concrete, etc.). Use mortar only if the crack is more than a half-inch wide.

 Replace the batteries in your smoke and carbon monoxide detectors when you change the clocks for daylight saving time.

 April

 Start your spring cleaning…

 Wash your windows, both inside and out. Also scrub the window frames and shutters. Replace storm windows and doors with screens.

 Pressure-wash outside surfaces. Spray sidewalks, driveways, exterior siding, decks and fences. Pressure washers can be rented for $50 to $75 a day — split the rental cost with a neighbor. Important: High-powered pressure washers can damage siding and decks if used improperly. Read the unit's operating instructions carefully.

 Test your underground lawn sprinkler system. Monitor the system through a full cycle to make sure it survived the winter in good shape. Some sprinkler heads might need to be cleaned or adjusted.

 Degrease your barbecue grill with a stiff brush and detergent. Gas grills require disassembly to clean burners. Use a soap solution to check the regulator and hoses for leaks (see your owner's manual).

 Clean and check gutters. Remove leaves and other debris from gutters. If you find any cracks or leaky seals, clean the area and use a putty knife to apply a thick coat of butyl rubber caulk. When the caulk dries, flush out your downspouts with a garden hose. If the downspouts don't effectively divert the water away from your foundation, buy splash blocks and place one under each gutter downspout.

May

 Make sure the dehumidifier is working properly if you live where it's humid and your entire home isn't air-conditioned.

 Vacuum window air conditioners, then make sure there is no air leakage around them (use removable rope caulk if necessary) and they are operating properly.

 Examine your deck for signs of deterioration. Tighten screws and railing bolts, and hammer down any exposed nails. Clean and reseal wood surfaces. Also check patio furniture for rust. Scrub rusted areas with a wire brush, then prime and paint.

 Check and repair weather stripping and caulking. Gaps around your doors and windows inflate energy bills.

 June

 Time to make some final preparations for the hot weather…

 Change the filters at all air returns of your air-conditioning system. While you're at it, vacuum out the cavity behind the filters.

 If you have a fan in the gable end of your home to evacuate hot air from your attic, make sure it is working. Confirm that the turbine vents spin freely. While you're in the attic, look for signs of moisture that might indicate the roof is leaking.

 Hire a chimney sweep. If you use your fireplace regularly, you should have the chimney cleaned at least every other year. The best time to schedule an appointment is early summer, when business is slow for chimney sweeps.

July

The month for outdoor projects…

Paint. July is warm and relatively dry (in most regions), making it a good time for exterior painting projects.

Inspect your roof shingles. If you don't want to risk climbing on your roof, use binoculars to carefully scan it for damaged and missing shingles.

Care for your garage door. Tighten screws and bolts. Make sure the auto-reverse is working. Use a light grease recommended in the owner's manual to lube the rollers. Important: Don't use a spray-on lube, which will sprinkle down on the car when you open the door.

August

August is the time to tackle those remaining outdoor projects or head inside if you've had enough sun…

 Mend fences. Replace broken or rotting boards. Repaint fences if necessary. Oil hinges on gates.

 Trim bushes and shrubs around your house. Your home has an increased risk of mold and mildew problems if you let plants grow within 12 inches of its exterior walls.

 Clean your dryer vent system. Disconnect the vent from the dryer and remove built-up lint. A leaf blower attached to the inside end of the vent can quickly clear it out.

 Call to have your gas or oil furnace or boiler serviced. It is best to set up the appointment before the cool weather comes. For forced-air furnaces, install a new filter every month during peak heating season.

September

Summer's over. Time to…

Protect your firewood. Cover your woodpile with a tarp, or move a winter's worth of wood into the garage or under an overhang, where it will stay dry.

 Drain and refill your water heater. Cleaning out sediment once a year will improve efficiency and extend the life of the unit. Check the manufacturer's instructions.

 Clean bathroom exhaust fans and kitchen vent hoods. Dust, dirt and mold can build up, reducing efficiency and air quality. Vacuum the fan assembly. Clean the grille and vent hoods with a mild detergent, and dry with a soft cloth. Never use abrasive cleansers.

 Shut down dehumidifiers for the year. Empty the reservoir completely, and wipe it down with a bleach solution to kill any mold growth.

October

 Cold weather's on the way…

 Take in or cover outdoor equipment. Clean and store the barbecue and patio furniture. Change the mower's oil, clean its blades and drain the gas. Call your town to find out about disposal points for the drained gas.

 Test your snowblower. Make sure that all winter equipment is working.

 Drain your lawn sprinkler system. Follow your system's winterization instructions. Also, store hoses and turn off the water to outside faucets, but leave them slightly open so that they drain.

 Rake often. Aim for every week or so when leaves are falling. If you wait until the end of the season, the job will be much harder, and your lawn will be starved for sun. Buy a leaf blower if raking is too hard on your back.

 Service your generator if you have one. Stock up on flashlights, candles, canned food and water in case of power outages.

November

Late-fall chores…

Tidy up your yard. Trim plants, re-mulch gardens and rake up the last leaves to keep your yard looking nice through March.

Clean and stow lawn and garden tools. Use a wire brush to remove any rust, and apply a thin film of oil to metal-on-metal surfaces.

Replace batteries in fire and carbon monoxide detectors. Do this when you adjust clocks for the end of daylight saving time on November 2, 2008.

December

Winter is here…

Make sure extension cords for holiday decorations that are used outside are rated for this use. All outdoor lights should also be plugged into a ground-fault-interrupter (GFI) receptacle.

Add adhesive-backed nonskid strips to stairs and other dangerous areas, because you will be indoors more. Keep walkways free of ice.

The first impression your property makes on potential buyers is vital to the success in selling your house, so it is important to make the buyer's first impression of it count.

 Of utmost importance will be the visual aspects of your home, especially the front yard and the entrance to the house.

 Buyers will typically enter the property through the front, making their way through your front yard, if you have one, and will enter the house through the front door.

 You should therefore ensure that the landscaping of your front lawn and garden is well groomed, and your front fence, driveway, and garage door are in good repair.  The front of your house will also need to be clean and modern and should not look outdated or be hidden by plants.

 When the potential buyer reaches your house they will appreciate being greeted by a clean, modern front door.  If your front door is old and faded it should be painted or replaced.

 Once the buyer enters your home they will immediately look around and take in their surroundings.  If you fail to make a good impression at this point the buyer may have already made up their mind they do not love your home and they will not be as open minded during the remainder of the tour.

 It is important to ensure that your entrance is clean, modern, and well lit.  Remove all clutter from the entrance to your home, ensure that the floors, walls, and ceiling are all modern, and make sure there is plenty of light to give your entrance a spacious appearance.

 It is necessary for the remainder of your home to be clean and modern as well, however it is the first impression of your house that will count more than anything else when showing your property to potential buyers.

Lawmakers have given their final seal of approval to a $170 billion plan intended to spark the slowing economy.  The centerpiece?  Tax Rebates.

 Questions abound about how the program will work, and officials at the Treasury Department and IRS are scurrying to work out the details, but for the time being, here are some answers based on currently available government information and experts' analysis.

 To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.

 Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200.

 In addition, parents will also receive $300 rebates per dependent child; there is no cap on the number of children eligible.

 Tax filers who don't owe income taxes because of various credits and deductions but have at least $3,000 in income - which can include Social Security and disability payments - will get $300 rebates per person or $600 per couple.

 Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

 Treasury Secretary Henry Paulson has said the IRS will start sending out checks in early May.  Previously, he said it should take about 10 weeks to crank out all the checks.  In all likelihood then, you'll see the money sometime between May and early July.

You want to buy a home but are scared to take the plunge in a crumbling market?

 Trying to time the housing market is about as risky as trying to time the stock market.  So if your aim by holding off is to try to get the best deal by buying just as prices have hit their low, that may be unrealistic.

  Even assuming you can figure out the ideal time to buy - that is, when prices have hit not only hit a trough but are on the verge of rebounding - by the time you find the house you want, line up the financing and close the deal, the "best" time may have already passed.

 And given the huge inventory of homes already for sale plus the ones likely to come into the market as more homeowners default on their mortgages and go into foreclosure, prices are forecast to tumble another 6 percent or so in 2008.

 Just remember one key thing… the national housing market is really a collection of many local markets, and the prospects can vary considerably from one locale to the next, depending on such factors as how hot the market got, the local employment picture and the volume of inventory and potential foreclosures.

 The kind of opportunity for buying a home at a good price doesn't come around very often in the housing market.  So now may be your best shot.  Do your research and make the most of it.  Contact us if you want to know more about specifics of the Atlanta real estate market