I just came across this little story and I must say that I can totally relate to it at times. In parts of South America, and other places in the world as well, people have a method for trapping monkeys that is so easy - it’s scary.
To make the trap, first they hollow out a gourd or a coconut leaving an opening just large enough for a monkey’s hand to go through. Next, they place peanuts inside the gourd, then attach a vine to the gourd and stake the other end of the vine to the ground somewhere out of sight.
The monkey smells the nuts inside the gourd and reaches in to grab it. However, the opening, which was just large enough for their hand to go in, is too small for his closed hand to go back through. No matter how much the monkey pulls, he cannot escape as long as he tries to hang on to his “prize.”
Meanwhile, the hunter who set the trap, comes along and captures the monkey, and all because the monkey wouldn’t let go of the prize. All he had to do was let go and he would be free, but he keeps hanging on.
So how many times have we found in our life that we are trying to hold onto something so hard and if we would just let go of it, we would have our freedom?
Anyways, I could kind of relate to this story in some of the areas of my life and so I wanted to share it with you. The moral of this story is – let go of the “peanuts” and enjoy some freedom.
Now the application for you today is, do you find yourself in the housing market trying to hold on to your so called “prize?”
Maybe you’re renting and you’re afraid to let go of that and go into home ownership. There has never been a better time to buy than right now.
Maybe you bought your house three years ago with 100% financing and because of the housing market crash, the value of your home is not what it was and your find yourself “stuck” so to speak with your hand in the gourd. We want you to know there are answers for those problems.
Give us a call or shoot us a quick email and let us share some options. Please don’t sit there with your hand in the gourd and let yourself get shot at. There are some answers and we want to help you.
Monday, December 21, 2009
Monday, December 14, 2009
Christmas Party Dusting Tip
So the holidays are here and I was doing a little cleaning to get ready for a party. Dusting is not on my list of favorite things to do, but it has to be done. So I did my dusting but noticed that after only three days, the house was dusty again and I was going to have to break out the ole dust rag again.
I did a little research on line and found that if you use these dryer sheets to do your dusting, there’s a chemical in them that helps save you from having to dust as often. Furniture has a static charge which attracts dust. But if you use the dryer sheets, they break the static charge so the dust won’t like your furniture anymore. How cool is that? And as an added bonus, your furniture and your house will smell nice!!
Now how about your credit? Does it need a little dusting off? Well I can help!! Give my office a call and let’s see what we can do to help you get into a home again, or get into a home for the first time! I work with a company that has had great success in helping my clients increase their credit score. There is virtually no category where we have not seen deletions. Judgements, liens, late payments, bankruptcies…you name it, we’ve seen it removed.
So if you think you can’t buy a house because of credit, think again. Whether you’re looking in the next month, 6 months or year, give my office a call or shoot me a quick email. Let us help you pick yourself up and dust yourself off and start all over again.
I did a little research on line and found that if you use these dryer sheets to do your dusting, there’s a chemical in them that helps save you from having to dust as often. Furniture has a static charge which attracts dust. But if you use the dryer sheets, they break the static charge so the dust won’t like your furniture anymore. How cool is that? And as an added bonus, your furniture and your house will smell nice!!
Now how about your credit? Does it need a little dusting off? Well I can help!! Give my office a call and let’s see what we can do to help you get into a home again, or get into a home for the first time! I work with a company that has had great success in helping my clients increase their credit score. There is virtually no category where we have not seen deletions. Judgements, liens, late payments, bankruptcies…you name it, we’ve seen it removed.
So if you think you can’t buy a house because of credit, think again. Whether you’re looking in the next month, 6 months or year, give my office a call or shoot me a quick email. Let us help you pick yourself up and dust yourself off and start all over again.
Monday, December 7, 2009
Top Questions To Ask When Interviewing A Realtor.
1. How Long Have You Been in the Business?
2. What is Your Average List-Price-to-Sales-Price Ratio?
3. What is Your Best Marketing Plan or Strategy for My Needs?
4. Will You Please Provide References?
5. What Are the Top Three Things That Separate You From Your Competition?
6. May I Review Documents Beforehand That I Will Be Asked to Sign?
7. How Will You Help Me Find Other Professionals?
8. How Much Do You Charge?
9. What Kind of Guarantee Do You Offer?
10. What Haven't I Asked You That I Need to Know?
2. What is Your Average List-Price-to-Sales-Price Ratio?
3. What is Your Best Marketing Plan or Strategy for My Needs?
4. Will You Please Provide References?
5. What Are the Top Three Things That Separate You From Your Competition?
6. May I Review Documents Beforehand That I Will Be Asked to Sign?
7. How Will You Help Me Find Other Professionals?
8. How Much Do You Charge?
9. What Kind of Guarantee Do You Offer?
10. What Haven't I Asked You That I Need to Know?
Monday, November 30, 2009
Purchasing a Fixer Upper (203K Loan)
The 203(k) loan includes the following steps:
A potential homebuyer locates a fixer-upperand executes a sales contract after doing a feasibility analysis of the property with their real estate professional. The contract should state that the buyer is seeking a 203(k) loanand that the contract is contingent on loanapproval based on additional required repairs by the FHA or the lender.
The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
The appraisal is performed to determine the value of the property after renovation.
If the borrower passes the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property.
A potential homebuyer locates a fixer-upperand executes a sales contract after doing a feasibility analysis of the property with their real estate professional. The contract should state that the buyer is seeking a 203(k) loanand that the contract is contingent on loanapproval based on additional required repairs by the FHA or the lender.
The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
The appraisal is performed to determine the value of the property after renovation.
If the borrower passes the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property.
Monday, November 23, 2009
Lower Your Insurance Premium
What you pay for homeowners insurance depends on age, location, type of residence, proximity to a fire department, the deductible amount and scope of coverage. Here are some tips to help loosen the squeeze on your wallet while still receiving the best coverage to meet your needs.
1) Check out online resources. Go to the Department of Insurance website for your state to make an educated comparison of various insurance companies.
2) Compare quotes from at least three different insurance companies to determine which one has the best coverage and premium.
3) Consider using one insurer for all your needs. Some companies offer a multiple policy discount if you buy auto, life and health insurance policies from them as well.
4) Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
5) check for government-backed rates. Some areas at high risk for natural disasters offer government-backed loans with lower rates.
6) check to see if you belong to any groups or organizations that can get you a lower rate. Common examples include alumni associations and service clubs.
1) Check out online resources. Go to the Department of Insurance website for your state to make an educated comparison of various insurance companies.
2) Compare quotes from at least three different insurance companies to determine which one has the best coverage and premium.
3) Consider using one insurer for all your needs. Some companies offer a multiple policy discount if you buy auto, life and health insurance policies from them as well.
4) Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
5) check for government-backed rates. Some areas at high risk for natural disasters offer government-backed loans with lower rates.
6) check to see if you belong to any groups or organizations that can get you a lower rate. Common examples include alumni associations and service clubs.
Monday, November 16, 2009
WHA? Who would have thought? Green Roofs?
OK!, OK! We are not talking about shingles painted green. The term green roofs alone can have many definitions. It can be a surface equipped with environmentally-friendly solar panels. It can be roofing constructed from recycled materials.
Or, sometimes, it can be referred to as a roof garden (a flat rooftop equipped with potted plants and flower beds). But more commonly a green roof is a completely planted surface on top of any manmade structure, wherein there are no traditional materials (tiles or shingles) at use. Instead, the entire roof deck is made up of soil which is then planted with vegetations.
Structural TechnologyGreen roofs allow previously wasted square footage to be turned into usable space. But if you're curious about how it all works, the short answer is "layering".
-The roof deck of your home is covered with a waterproof barrier which also works to impede
root infiltration.
-Next, a drainage layer is installed, helping to move water away from your home.
-Then, soil is introduced along with any vegetation you wish.
-Though this is the basic structure, there are limitless options in terms of design.
-You can install grass, plants, trees, shrubs, etc.
-Now to get you started, here are a couple basic types to consider:
Extensive:
An extensive green roof is the most common because it's the most self-sufficient. It usually lies on flat roofs with roughly 2-4 inches of soil. Typically the plant life is smaller, low-maintenance, drought-resistant, and resembles a lawn.
Intensive: This high-profile style of roofing uses more variety of plant life which tends to need more care. Typically more expensive because larger plants are used, the soil has to be thickened as well in order to create additional support. Depending on the vegetation, the support system of your house, and any extra architectural accents (waterfalls, gazebos, etc.), the soil depth could range anywhere from 6 inches to several feet.
Environmental Benefits
Stormwater Runoff: Soil and vegetation absorb rainfall and slowly releases it over time. Therefore, it controls flooding, sewer overflow, and overall soil erosion.
Filtration: Plant life naturally filters pollutants from rainwater before it enters into rivers and streams. Plus, it filters the air for quality, creating a healthier living environment.
Temperature Control: Traditional roofing can add to the problem of over-heating, especially in cities where "urban heat islands" are created. Vegetated roofing captures heat, reduces temperatures, and can increase the air's moisture level.
Acoustic Insulation: Soil and vegetation are great for sound proofing. In fact, they're often installed near airports or busy freeways to help absorb the noise. Habitat: They provide habitats for wildlife, such as birds, insects, and small mammals.
Beauty in Savings
Green roofs unique and visually stunning, they also have many ecological and economic benefits. Here are few to keep in mind:
Economic Benefits
Resilient: Since they protect your house from UV rays and extreme temperatures (which is the cause of most roof damage) they can last twice as long as traditional roofs.
Energy Efficient: They provide natural thermal insulation, which can help you save on energy costs. It's like being underground, creating natural shade and absorbing solar heat.
Curb Appeal: They're distinct and eye-catching, which helps add value to your home.
Incentives: The government has become more aware of these benefits, and as a result, they're beginning to create grants and tax breaks to homeowners willing to convert their traditional roofing. Do some research in your community's policy, and if they don't have incentive programs, then write a letter to your local government to encourage it.
Installation and MaintenancePre-existing roofs can be converted however make sure you hire a professional who knows how these systems work. They can be put on any pitch, however the steeper the top of your house the tougher the installation.
Vegetated covers can range anywhere from $10-$40, depending on the structure and the plant life. While they can be fire hazards during dry seasons, they are also great at absorbing water during wet weather (saving you money on gutter systems). But just like a lawn, you will now need to water, fertilize, and weed the top of your house as well. “Who would have thought?”
J. Schmidt
Innovative Design
336-286-7907
Or, sometimes, it can be referred to as a roof garden (a flat rooftop equipped with potted plants and flower beds). But more commonly a green roof is a completely planted surface on top of any manmade structure, wherein there are no traditional materials (tiles or shingles) at use. Instead, the entire roof deck is made up of soil which is then planted with vegetations.
Structural TechnologyGreen roofs allow previously wasted square footage to be turned into usable space. But if you're curious about how it all works, the short answer is "layering".
-The roof deck of your home is covered with a waterproof barrier which also works to impede
root infiltration.
-Next, a drainage layer is installed, helping to move water away from your home.
-Then, soil is introduced along with any vegetation you wish.
-Though this is the basic structure, there are limitless options in terms of design.
-You can install grass, plants, trees, shrubs, etc.
-Now to get you started, here are a couple basic types to consider:
Extensive:
An extensive green roof is the most common because it's the most self-sufficient. It usually lies on flat roofs with roughly 2-4 inches of soil. Typically the plant life is smaller, low-maintenance, drought-resistant, and resembles a lawn.
Intensive: This high-profile style of roofing uses more variety of plant life which tends to need more care. Typically more expensive because larger plants are used, the soil has to be thickened as well in order to create additional support. Depending on the vegetation, the support system of your house, and any extra architectural accents (waterfalls, gazebos, etc.), the soil depth could range anywhere from 6 inches to several feet.
Environmental Benefits
Stormwater Runoff: Soil and vegetation absorb rainfall and slowly releases it over time. Therefore, it controls flooding, sewer overflow, and overall soil erosion.
Filtration: Plant life naturally filters pollutants from rainwater before it enters into rivers and streams. Plus, it filters the air for quality, creating a healthier living environment.
Temperature Control: Traditional roofing can add to the problem of over-heating, especially in cities where "urban heat islands" are created. Vegetated roofing captures heat, reduces temperatures, and can increase the air's moisture level.
Acoustic Insulation: Soil and vegetation are great for sound proofing. In fact, they're often installed near airports or busy freeways to help absorb the noise. Habitat: They provide habitats for wildlife, such as birds, insects, and small mammals.
Beauty in Savings
Green roofs unique and visually stunning, they also have many ecological and economic benefits. Here are few to keep in mind:
Economic Benefits
Resilient: Since they protect your house from UV rays and extreme temperatures (which is the cause of most roof damage) they can last twice as long as traditional roofs.
Energy Efficient: They provide natural thermal insulation, which can help you save on energy costs. It's like being underground, creating natural shade and absorbing solar heat.
Curb Appeal: They're distinct and eye-catching, which helps add value to your home.
Incentives: The government has become more aware of these benefits, and as a result, they're beginning to create grants and tax breaks to homeowners willing to convert their traditional roofing. Do some research in your community's policy, and if they don't have incentive programs, then write a letter to your local government to encourage it.
Installation and MaintenancePre-existing roofs can be converted however make sure you hire a professional who knows how these systems work. They can be put on any pitch, however the steeper the top of your house the tougher the installation.
Vegetated covers can range anywhere from $10-$40, depending on the structure and the plant life. While they can be fire hazards during dry seasons, they are also great at absorbing water during wet weather (saving you money on gutter systems). But just like a lawn, you will now need to water, fertilize, and weed the top of your house as well. “Who would have thought?”
J. Schmidt
Innovative Design
336-286-7907
Monday, November 9, 2009
Five Things to Do Before Starting Your Remodeling Project!
You would like to remodel your bathroom or kitchen and you have a pretty good idea what you want it to look like, but where do you start. Who do you call first? Do you find someone in the Yellow Pages or on the Internet? Quit pulling your hair out, because I'm about to share five of the most important things you need to consider before starting any home remodeling project.
1. Go to the library and get some books? If you're going to remodel your bathroom, find some books on bathroom remodeling and start looking at the pictures, learning about the different styles and then get more books. More books usually mean more pictures and more pictures leads us to our next tip.
2. A picture is worth a thousand words. It doesn't really matter which section of the home your remodeling, if you don't know exactly what you want it to look like, you're going to need to start looking at pictures and look at as many pictures as you possibly can, until you come up with something that you truly desire.
3. Will this design work well in my home? It's never going to be a good idea to install Spanish floor tile in a contemporary bathroom. Make sure that your remodeling project matches the style of the rest of your home.
4. How much is this going to cost? You can get prices for all of the items that you're planning on installing and this should give you a pretty good start. For labor prices, you're going to need to contact a contractor, but only do that after you read tip number five.
5. How do I find a good contractor? This isn't as tough as most people think it is, but you're going to need to look for three very important things. Make sure that you get along with the contractor, they have enough experience to complete the project and by all means, check to make sure that they actually have a contractor's license.
To sum it all up, if you don't really know what you want, start looking at pictures and if you don't know how much things are going to cost, start reading some books on construction costs. If you don't know who to hire, start asking your friends for referrals.
Project Organization System
1. Make a list of everything you would like to improve on your projects.
2. Rearrange the list in order of importance to you.
3. Decide what it is that you want to accomplish first.
Sometimes homeowners are caught between several wants or needs and
need to decide what task is most important.
4. Rough estimate the cost of materials needed for your project.
5. Rough estimate the time it will take to complete your project.
6. Generate an approximate dollar figure needed to complete your project.
7. Add 25% to your approximate dollar figure for miscellaneous unforeseen costs.
8. ID can help you with your cost estimate by going over the project with you.
9. ID can work on your project while you are away on vacation or during the
Holiday Seasons.
10. ID will get your project going and finished anytime of the year. We work year
round and through the Holiday Seasons.
11. Have an area somewhere in your home that can serve as a place to keep tools,
paint and necessary temporary storage during the project.
12. Be patient while work is in progress! Rome was not built in a day. Projects
take time to complete
We hope this helps in your next remodeling project.
Innovative Design
John Schmidt
336-286-7907
1. Go to the library and get some books? If you're going to remodel your bathroom, find some books on bathroom remodeling and start looking at the pictures, learning about the different styles and then get more books. More books usually mean more pictures and more pictures leads us to our next tip.
2. A picture is worth a thousand words. It doesn't really matter which section of the home your remodeling, if you don't know exactly what you want it to look like, you're going to need to start looking at pictures and look at as many pictures as you possibly can, until you come up with something that you truly desire.
3. Will this design work well in my home? It's never going to be a good idea to install Spanish floor tile in a contemporary bathroom. Make sure that your remodeling project matches the style of the rest of your home.
4. How much is this going to cost? You can get prices for all of the items that you're planning on installing and this should give you a pretty good start. For labor prices, you're going to need to contact a contractor, but only do that after you read tip number five.
5. How do I find a good contractor? This isn't as tough as most people think it is, but you're going to need to look for three very important things. Make sure that you get along with the contractor, they have enough experience to complete the project and by all means, check to make sure that they actually have a contractor's license.
To sum it all up, if you don't really know what you want, start looking at pictures and if you don't know how much things are going to cost, start reading some books on construction costs. If you don't know who to hire, start asking your friends for referrals.
Project Organization System
1. Make a list of everything you would like to improve on your projects.
2. Rearrange the list in order of importance to you.
3. Decide what it is that you want to accomplish first.
Sometimes homeowners are caught between several wants or needs and
need to decide what task is most important.
4. Rough estimate the cost of materials needed for your project.
5. Rough estimate the time it will take to complete your project.
6. Generate an approximate dollar figure needed to complete your project.
7. Add 25% to your approximate dollar figure for miscellaneous unforeseen costs.
8. ID can help you with your cost estimate by going over the project with you.
9. ID can work on your project while you are away on vacation or during the
Holiday Seasons.
10. ID will get your project going and finished anytime of the year. We work year
round and through the Holiday Seasons.
11. Have an area somewhere in your home that can serve as a place to keep tools,
paint and necessary temporary storage during the project.
12. Be patient while work is in progress! Rome was not built in a day. Projects
take time to complete
We hope this helps in your next remodeling project.
Innovative Design
John Schmidt
336-286-7907
Monday, November 2, 2009
Frequently Asked Rental Questions!
If my personal property is damaged by fire or theft while I am a tenant, will the landlord have to compensate me for my loss?
Not necessarily. Many tenants assume that their belongings are protected under the landlord's insurance. But unless the fire or theft was the result of a negligent act by the landlord, he is not responsible for your loss. Therefore, it is generally a good idea for you to purchase renter's insurance for your protection.
I filled out an application to rent an apartment and gave the landlord money to "hold" the apartment for me. Now I have found another place that I like better. Can I get my money back?
Probably not. Money you give to "hold" an apartment generally can be kept by the landlord. It is the price you pay to ensure that the landlord does not rent the apartment to someone else.
Can I withhold my rent if the landlord does not do the repairs?
No, not without a court order or the permission of the landlord. Give the landlord a written request for repairs, and keep a copy. If a reasonable time passes and the repairs are not properly done, you may seek a rent reduction in Small Claims Court for the decreased value of your apartment. If the landlord ignores your request to fix the problem and your apartment is uninhabitable, you may be able to vacate the apartment and end the landlord-tenant relationship under a legal theory called "constructive eviction." Consult an attorney for advice.
Not necessarily. Many tenants assume that their belongings are protected under the landlord's insurance. But unless the fire or theft was the result of a negligent act by the landlord, he is not responsible for your loss. Therefore, it is generally a good idea for you to purchase renter's insurance for your protection.
I filled out an application to rent an apartment and gave the landlord money to "hold" the apartment for me. Now I have found another place that I like better. Can I get my money back?
Probably not. Money you give to "hold" an apartment generally can be kept by the landlord. It is the price you pay to ensure that the landlord does not rent the apartment to someone else.
Can I withhold my rent if the landlord does not do the repairs?
No, not without a court order or the permission of the landlord. Give the landlord a written request for repairs, and keep a copy. If a reasonable time passes and the repairs are not properly done, you may seek a rent reduction in Small Claims Court for the decreased value of your apartment. If the landlord ignores your request to fix the problem and your apartment is uninhabitable, you may be able to vacate the apartment and end the landlord-tenant relationship under a legal theory called "constructive eviction." Consult an attorney for advice.
Monday, October 26, 2009
Tax Credit For Energy Efficient Homes or Additions
If you are looking to upgrade your home please consider upgrading with energy efficient items. These upgrades will save you money on your utility bills and give you a few tax breaks. Homes that are energy efficient can possibly even get you discounts at your local utility companies. This could be different from company to company. The tax credits however are listed below.
Tax credits are available at 30% of the cost, up to $1,500 total, in 2009 & 2010 (ONLY for existing homes, NOT new construction, that are your principle residence) for:
· Windows and Doors
· Insulation
· Roofs (Metal and Asphalt)
· HVAC
· Water Heaters (non-solar)
· Biomass Stoves
Tax credits are available at 30% of the cost, with no upper limit, through 2016 (for existing homes & new construction - it does not have to be your principle residence, vacation homes are eligible).
· Geothermal Heat Pumps
· Solar Panels
· Solar Water Heater
· Small Wind Energy Systems
Tax credits are available at 30% of the cost, up to $500 per .5 kW of power capacity, through 2016 (for your existing principle residence or new construction that will be your principle residence, DOES NOT include vacation homes) for:
Fuel Cells
Renters are not eligible for any of the tax credits.
See energystar.gov/taxcredits for details.
Tax credits are available at 30% of the cost, up to $1,500 total, in 2009 & 2010 (ONLY for existing homes, NOT new construction, that are your principle residence) for:
· Windows and Doors
· Insulation
· Roofs (Metal and Asphalt)
· HVAC
· Water Heaters (non-solar)
· Biomass Stoves
Tax credits are available at 30% of the cost, with no upper limit, through 2016 (for existing homes & new construction - it does not have to be your principle residence, vacation homes are eligible).
· Geothermal Heat Pumps
· Solar Panels
· Solar Water Heater
· Small Wind Energy Systems
Tax credits are available at 30% of the cost, up to $500 per .5 kW of power capacity, through 2016 (for your existing principle residence or new construction that will be your principle residence, DOES NOT include vacation homes) for:
Fuel Cells
Renters are not eligible for any of the tax credits.
See energystar.gov/taxcredits for details.
Monday, October 19, 2009
Don't Let Your Valuables Go Down The Drain!
Now I’m sure you’ve seen the old sitcoms where someone loses a ring or something down the sink and the hilarious antics of trying to retrieve it. Well I’m here to tell you it doesn’t just happen in comedy shows; it happens in real-life too and I saw it this weekend. So here’s what happened…Someone dropped their ring down the drain.
So the ring goes down where you have a little goose-neck catch; anything heavy falls in this area and does not get flushed all the way down the drain. This assumes that the water is not running, so make sure you have turned the water off. Now if your ring ends up all the way down the drain, well you are going to be getting a new ring, right? But as long as it is in the little goose-neck catch, you can get it out. Here is what you do: Get out a Shop-Vac. Everyone has a Shop-Vac right? If you don’t, your neighbor does. Get a ladies stocking and put it over the hose of the Shop-Vac. In other words, the hose part that does the vacuuming has pantyhose over the top. Then take the hose and put it in the sink right over the drain and turn the vacuum on for about 30 seconds. In this case, the ring, which was caught in the goose-neck trap, was then sucked up. Very clever little trick. I hope you never have to use it, but at least you know what to do if it ever happens to you and 99 chances out of 100, the ring or whatever you dropped is going to be right there on the pantyhose from the vacuum cleaner. I love this trick. This one would be a good one to share with friends and family.
The point of me telling you this story is to let you know that there are always solutions to what you are going through. I know that it is a challenging time right now for some people, but keep in mind it is an opportunity for others.
And this is a great time to be buying houses right now guys, I’m telling you there are some real good deals out there. For those of you looking to sell - houses are starting to move and the market has definitely turned. We are seeing a lot of activity right now. So give us a call or shoot us an email. Thanks for joining us today and we will talk to you when you call in.
So the ring goes down where you have a little goose-neck catch; anything heavy falls in this area and does not get flushed all the way down the drain. This assumes that the water is not running, so make sure you have turned the water off. Now if your ring ends up all the way down the drain, well you are going to be getting a new ring, right? But as long as it is in the little goose-neck catch, you can get it out. Here is what you do: Get out a Shop-Vac. Everyone has a Shop-Vac right? If you don’t, your neighbor does. Get a ladies stocking and put it over the hose of the Shop-Vac. In other words, the hose part that does the vacuuming has pantyhose over the top. Then take the hose and put it in the sink right over the drain and turn the vacuum on for about 30 seconds. In this case, the ring, which was caught in the goose-neck trap, was then sucked up. Very clever little trick. I hope you never have to use it, but at least you know what to do if it ever happens to you and 99 chances out of 100, the ring or whatever you dropped is going to be right there on the pantyhose from the vacuum cleaner. I love this trick. This one would be a good one to share with friends and family.
The point of me telling you this story is to let you know that there are always solutions to what you are going through. I know that it is a challenging time right now for some people, but keep in mind it is an opportunity for others.
And this is a great time to be buying houses right now guys, I’m telling you there are some real good deals out there. For those of you looking to sell - houses are starting to move and the market has definitely turned. We are seeing a lot of activity right now. So give us a call or shoot us an email. Thanks for joining us today and we will talk to you when you call in.
Monday, October 12, 2009
Green Apples Can Help Sell Your Home
We just had a staff meeting and one of our team members brought in a report that was written by the Smell And Taste Treatment Research Foundation of Chicago – whew that’s a mouthful. They specialize in how smells and tastes affect us as human beings. In this report it said that the smell of apples, of green apples to be exact, is a great cure for claustrophobia.
Now I know you’re saying, “Wait a minute! What does this have to do with buying and selling houses?” I will tell you in just a second. But if you ever find yourself in a tight spot and feeling a little claustrophobic, make sure you have enough room to carry an extra green apple in your pocket! Smell it before you go into a small space. They say it works amazingly.
Now the good stuff – they took a group of people and brought them into rooms. They asked them to estimate the size of the rooms. Then, they did nothing but add the smell of green apples to those rooms, and consistently the subjects estimated the rooms bigger than they really were. It was absolutely amazing. Something in the smell messes with our concept of space, making things seem bigger and more spacious.
So what does this mean for you? If any of you are looking to sell a house, put the smell of green apples in it. You can use actual apples or go to the store and get a room deodorizer with the smell of green apple. By getting the smell of green apples, it gives a spaciousness feel to the home. That is great news.
Now I know you’re saying, “Wait a minute! What does this have to do with buying and selling houses?” I will tell you in just a second. But if you ever find yourself in a tight spot and feeling a little claustrophobic, make sure you have enough room to carry an extra green apple in your pocket! Smell it before you go into a small space. They say it works amazingly.
Now the good stuff – they took a group of people and brought them into rooms. They asked them to estimate the size of the rooms. Then, they did nothing but add the smell of green apples to those rooms, and consistently the subjects estimated the rooms bigger than they really were. It was absolutely amazing. Something in the smell messes with our concept of space, making things seem bigger and more spacious.
So what does this mean for you? If any of you are looking to sell a house, put the smell of green apples in it. You can use actual apples or go to the store and get a room deodorizer with the smell of green apple. By getting the smell of green apples, it gives a spaciousness feel to the home. That is great news.
Monday, October 5, 2009
Things You Need to Know About Your Septic System!!!
If you live or are looking to purchase a property in the county, then you need to know a little bit about septic systems. When buying or selling a home you need to make sure that your home has a large enough septic system. If your home has 4 bedrooms and a septic system that is only functional for 2 bedrooms, then you cannot sell your home as a 4 bedroom house, which can drastically reduce the price of your home.
Here are some other things you need to know about your septic system:
1) What type of septic system do you have?
2) Where is it located?
3) Where is the repair area located?
4) Is the septic system working properly?
5) Has it been maintained in the past?
6) How do you recognize a failing septic system?
7) What maintenance is needed in the future?
Here are some signs of possible septic system problems:
1) Sewage backing up into your toilets, tubs, or sinks.
2) Slowly draining fixtures; particularly after it has rained.
3) The smell of raw sewage accompanied by extremely soggy soil over the drainfield.
4) Sewage discharged over the ground or in nearby ditches or woods. Note, in the LPP system
sewage may come to the ground surface when the pump is turned on and then disappear
after the pump turns off.
5) Broken or cracked white pipes that stick out of the ground in a LPP system.
6) An alarm flashing (red light) or beeping in the house, garage, crawl space, or in the yard
indicating a pump is not working properly.
7) An increase in infections or illnesses associated with swimming in lakes or rivers next to the
system.
8) Water test results indicating the presence of biological contamination or organic chemical
contamination in the groundwater under the system.
More information can be found by contacting your county's Department of Public Health or Environmental Health Division.
Here are some other things you need to know about your septic system:
1) What type of septic system do you have?
2) Where is it located?
3) Where is the repair area located?
4) Is the septic system working properly?
5) Has it been maintained in the past?
6) How do you recognize a failing septic system?
7) What maintenance is needed in the future?
Here are some signs of possible septic system problems:
1) Sewage backing up into your toilets, tubs, or sinks.
2) Slowly draining fixtures; particularly after it has rained.
3) The smell of raw sewage accompanied by extremely soggy soil over the drainfield.
4) Sewage discharged over the ground or in nearby ditches or woods. Note, in the LPP system
sewage may come to the ground surface when the pump is turned on and then disappear
after the pump turns off.
5) Broken or cracked white pipes that stick out of the ground in a LPP system.
6) An alarm flashing (red light) or beeping in the house, garage, crawl space, or in the yard
indicating a pump is not working properly.
7) An increase in infections or illnesses associated with swimming in lakes or rivers next to the
system.
8) Water test results indicating the presence of biological contamination or organic chemical
contamination in the groundwater under the system.
More information can be found by contacting your county's Department of Public Health or Environmental Health Division.
Monday, September 28, 2009
Pros and Cons For Sellers (Rent to Own)
A – Seller Benefit: There are significantly more buyers than sellers with lease-options. The buyers who are serious are not dummies. They are often more connected to the neighborhoods and understand market values of the homes better than the real estate agents selling homes there. When a lease-option is structured properly you will be surprised at the buyer demand for the property no matter what its value or location.
B – Seller Benefit: The tenants will usually treat the house as if they own it since they will probably buy it when the lease-option terms are up. The importance of screening potential tenants is something that landlords must learn. The same concept is valid for lease-option homebuyers. The lease option applicants that I have seen tend to treat their houses well, since they would like to own their own home someday. I’ve had good experiences with lease-option tenants except one. Since I failed to conduct a thorough check on my applicants, this was my own responsibility.
C – Seller Benefit: If you apply a portion of the rent as a credit towards the overall purchase, the tenant will generally be willing to pay higher than market rent. The tenant who chooses a lease option knows that it is a good bargain; hence they are ready to pay a rent which is higher when compared to the market rent for a similar house. How much more? I don’t possess this knowledge. Start at 10% more, but realize it can often be even higher than this. People who enter into lease-option agreements realize that this is an excellent way for them to have the home they have always wanted. Even if it isn’t the home they want to stay in forever, it will allow them to improve their Fair Isaac Corporation (FICO) credit score and improve their overall financial situation so they can qualify for a mortgage loan in the future.
Lease option sellers also need to record all monthly rents they receive as rental income on Section E of their 1040 income tax forms. The IRS cannot claim a landlord didn’t report all rental income if a tenant chooses not to utilize their purchase option. The landlord can equalize the rental income making it essential tax-free by using the Schedule E form, which accounts for the rent received less the applicable expenses for lease-option property such as insurance, property tax, repairs and depreciation.
D – Seller Benefit: When a tenant decides to purchase the property, they will be given an “adjusted sales price” which is the gross sale price minus the rent credit that was accrued while they were leasing the property.
Depending on the circumstances, especially when you are the lease option buyer, it may be advantageous to negotiate for the buyer to pay for all repair bills. As a lease-option buyer, it is wise to have complete control of what happens to the property so that you can decide how and when to make repairs and improvements.
E – Seller Benefit: One of the advantages for the seller is getting the non-refundable money for the option and possibly pre-paid rent as well.
To have a valid option to purchase a property, the buyer-tenant will have to pay a form of non-refundable option consideration, which is usually money. One dollar would be sufficient.
Experience shows that if the amount of option money is higher, there is a greater possibility of the tenant to purchase. I usually try to get several thousand dollars in non-refundable option money as an incentive to the buyer. These funds act like a security deposit in a regular rental agreement, except that deposits cannot be refunded with a lease-option.
Until the exercising of the purchase option, the option consideration money does not need to be reported as income to the IRS. This is because if the money is used as part of the buyer’s down payment part of it becomes non-taxable return of investment and the other portion is taxable capital gain. The non-refundable option money becomes taxable income to the landlord if the tenant decides not to buy the property.
Some tax advisors will recommend the option for the money to be reported to the IRS in the tax year of its receipt by the property owner. Yet many don’t understand what to do if the option to buy is not exercised and the money has been reported and taxed as regular income. It is also unclear how to account for a situation where the property is purchased and a portion of the money is used as a non-taxable return of investment and part of it becomes capital gain.
F – SellerBenefit: Lease-option buyers will ultimately pay the maximum for the option purchase price. As a long-time seller of houses using lease-options and determining my option purchase price on recent sale prices of comparable nearby homes, buyers have not questioned the prices I have set. I make the price at the high end of the going rates for the location. Lease-option buyers are thrilled to find a lease-option, so often buyers won’t argue over the price or terms, unless they are unreasonable.
Sellers would probably prefer twelve-month lease options. However, as a buyer, the longer term you have the better so that the option purchase price is locked in and you have a better chance of cashing in on any appreciation of the property. My experience has shown that when the lease-option expires in 12 months many of the tenant-buyers are not ready to exercise their purchase option. I think that’s great!
At that time, we can renegotiate the (a) monthly rent, and/or (b) option purchase price. In a rising market, it is especially important. When selling, I have often extended an annual lease for up to as long as five years, but usually with different terms.
G – Seller Benefit: Throughout the terms of the lease, the person selling the property gets to take all tax deductions, including income and depreciation. Purchasers and real estate agents should strongly emphasize this point to potential sellers, for it is a great benefit to lease-option sellers. However, once the property is purchased, the seller has to report the sale on Schedule D of their income tax return and include any “recapture” of depreciation that may have been deducted while the property was rented.
It is important for the seller to remember the major tax benefit of Internal Revenue Code 121 if the house or condo has been their principal residence. The seller who has lived in his home for at least twenty of the last sixty months before selling it, then he is eligible to claim tax free capital gains to $250,000 and till $500,000 for a married couple who fulfill the occupancy test. This tax break will be lost to the seller if he uses the lease option for more than three years after moving away. It is highly recommended to consult with a tax advisor.
If an investor owns the lease option property, he can make a tax-deferred exchange under Internal Revenue Code Section 1031 when the tenant elects to buy the property. The property must be of equivalent value, combining cost and equity, in order to qualify to find out all the pertinent information, please check with the person who advises you on your taxes.
H- Drawback for Seller: There is no immediate sale for cash. A leash option is not a good idea if you need an immediate cash sale of your property. Although, if you are not in a hurry to sell but need revenue to cover the mortgage payment, taxes or other expenses a lease-option will give you all of the benefits explained previously.
If the property market skyrockets in value during the lease-option term, the tenant-buyer benefits. This is the reason why I recommend that owners only sign one-year lease-options. In order to avoid unforeseen difficulties, I would never advise entering into a lease option, which allows for the option price to be negotiated or determined by an appraisal. Instead, as the seller, be happy for the buyer if the market value goes up, even if you don’t receive absolutely top dollar for the property.
B – Seller Benefit: The tenants will usually treat the house as if they own it since they will probably buy it when the lease-option terms are up. The importance of screening potential tenants is something that landlords must learn. The same concept is valid for lease-option homebuyers. The lease option applicants that I have seen tend to treat their houses well, since they would like to own their own home someday. I’ve had good experiences with lease-option tenants except one. Since I failed to conduct a thorough check on my applicants, this was my own responsibility.
C – Seller Benefit: If you apply a portion of the rent as a credit towards the overall purchase, the tenant will generally be willing to pay higher than market rent. The tenant who chooses a lease option knows that it is a good bargain; hence they are ready to pay a rent which is higher when compared to the market rent for a similar house. How much more? I don’t possess this knowledge. Start at 10% more, but realize it can often be even higher than this. People who enter into lease-option agreements realize that this is an excellent way for them to have the home they have always wanted. Even if it isn’t the home they want to stay in forever, it will allow them to improve their Fair Isaac Corporation (FICO) credit score and improve their overall financial situation so they can qualify for a mortgage loan in the future.
Lease option sellers also need to record all monthly rents they receive as rental income on Section E of their 1040 income tax forms. The IRS cannot claim a landlord didn’t report all rental income if a tenant chooses not to utilize their purchase option. The landlord can equalize the rental income making it essential tax-free by using the Schedule E form, which accounts for the rent received less the applicable expenses for lease-option property such as insurance, property tax, repairs and depreciation.
D – Seller Benefit: When a tenant decides to purchase the property, they will be given an “adjusted sales price” which is the gross sale price minus the rent credit that was accrued while they were leasing the property.
Depending on the circumstances, especially when you are the lease option buyer, it may be advantageous to negotiate for the buyer to pay for all repair bills. As a lease-option buyer, it is wise to have complete control of what happens to the property so that you can decide how and when to make repairs and improvements.
E – Seller Benefit: One of the advantages for the seller is getting the non-refundable money for the option and possibly pre-paid rent as well.
To have a valid option to purchase a property, the buyer-tenant will have to pay a form of non-refundable option consideration, which is usually money. One dollar would be sufficient.
Experience shows that if the amount of option money is higher, there is a greater possibility of the tenant to purchase. I usually try to get several thousand dollars in non-refundable option money as an incentive to the buyer. These funds act like a security deposit in a regular rental agreement, except that deposits cannot be refunded with a lease-option.
Until the exercising of the purchase option, the option consideration money does not need to be reported as income to the IRS. This is because if the money is used as part of the buyer’s down payment part of it becomes non-taxable return of investment and the other portion is taxable capital gain. The non-refundable option money becomes taxable income to the landlord if the tenant decides not to buy the property.
Some tax advisors will recommend the option for the money to be reported to the IRS in the tax year of its receipt by the property owner. Yet many don’t understand what to do if the option to buy is not exercised and the money has been reported and taxed as regular income. It is also unclear how to account for a situation where the property is purchased and a portion of the money is used as a non-taxable return of investment and part of it becomes capital gain.
F – SellerBenefit: Lease-option buyers will ultimately pay the maximum for the option purchase price. As a long-time seller of houses using lease-options and determining my option purchase price on recent sale prices of comparable nearby homes, buyers have not questioned the prices I have set. I make the price at the high end of the going rates for the location. Lease-option buyers are thrilled to find a lease-option, so often buyers won’t argue over the price or terms, unless they are unreasonable.
Sellers would probably prefer twelve-month lease options. However, as a buyer, the longer term you have the better so that the option purchase price is locked in and you have a better chance of cashing in on any appreciation of the property. My experience has shown that when the lease-option expires in 12 months many of the tenant-buyers are not ready to exercise their purchase option. I think that’s great!
At that time, we can renegotiate the (a) monthly rent, and/or (b) option purchase price. In a rising market, it is especially important. When selling, I have often extended an annual lease for up to as long as five years, but usually with different terms.
G – Seller Benefit: Throughout the terms of the lease, the person selling the property gets to take all tax deductions, including income and depreciation. Purchasers and real estate agents should strongly emphasize this point to potential sellers, for it is a great benefit to lease-option sellers. However, once the property is purchased, the seller has to report the sale on Schedule D of their income tax return and include any “recapture” of depreciation that may have been deducted while the property was rented.
It is important for the seller to remember the major tax benefit of Internal Revenue Code 121 if the house or condo has been their principal residence. The seller who has lived in his home for at least twenty of the last sixty months before selling it, then he is eligible to claim tax free capital gains to $250,000 and till $500,000 for a married couple who fulfill the occupancy test. This tax break will be lost to the seller if he uses the lease option for more than three years after moving away. It is highly recommended to consult with a tax advisor.
If an investor owns the lease option property, he can make a tax-deferred exchange under Internal Revenue Code Section 1031 when the tenant elects to buy the property. The property must be of equivalent value, combining cost and equity, in order to qualify to find out all the pertinent information, please check with the person who advises you on your taxes.
H- Drawback for Seller: There is no immediate sale for cash. A leash option is not a good idea if you need an immediate cash sale of your property. Although, if you are not in a hurry to sell but need revenue to cover the mortgage payment, taxes or other expenses a lease-option will give you all of the benefits explained previously.
If the property market skyrockets in value during the lease-option term, the tenant-buyer benefits. This is the reason why I recommend that owners only sign one-year lease-options. In order to avoid unforeseen difficulties, I would never advise entering into a lease option, which allows for the option price to be negotiated or determined by an appraisal. Instead, as the seller, be happy for the buyer if the market value goes up, even if you don’t receive absolutely top dollar for the property.
Tuesday, September 22, 2009
Myths The Credit Bureaus Want You To Believe
Myth No. 1 – It is easy to dispute a credit report. Consumer’s can resolve their own issues.
To be honest, it IS simple to challenge a credit report. However, as an everyday person, it’s amazingly difficult and frustrating to get results from the credit bureaus. Here’s why.
This is a little-known fact. More complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years due to failure to respond properly to charges.
The main objective of credit bureaus is to protect their profits. They are NOT government agencies. They are for profit organizations. Anytime they have to investigate a consumer disputes it eats into those profits. Investigations take up time and energy too. The credit bureaus do everything in their power to make restoring your credit exceedingly difficult, short of sparking more massive lawsuits.
Attempting to restore your own credit means you must be willing to spend time learning about the process. This is why it is so difficult when you are inexperienced. Itmost cases you may be less effective than if you hired a professional. Realize that credit restoration will most likely take longer than you expected.
Myth No. 2 –A negative item that is successfully removed from your credit report will simply reappear again.
The reality is that a creditor has 30 days to verify a dispute. If the credit bureau has not heard from the creditor within that timeframe, they must delete the item from your report. Sometimes the bureaus will perform a soft delete. This is where they delete the item from your report but, will reinsert the item if they hear from the creditor within a week or two of the 30 days.
If this happens, the item can be disputed again. However, most of the time, once an item is deleted, it is gone for good. By using our preferred attorney’s, you can be sure your item will be disputed over and over again until it is removed. We have experienced a 96% success rate with this.
Myth No. 3 – Bankruptcies, foreclosures and tax liens can never be taken off your credit report.
Approached correctly, any negative listing can be removed. That is why it is best to work with a professional. They have the experience and know how to remove these items.
Myth No. 4 – The credit agency permits a 100-word paragraph to be entered on an account to explain the situation. Creditor’s take this statement into consideration when they’re weighing they’re options about extending credit.This seems reasonable, but it’s not correct. When we talk about creditors, we’re talking about companies who are loaning money – for credit cards, mortgages, cars, department store credit cards. Very few of these companies will consider any information you submit in a paragraph explanation. The only items verified on the statement are the negative items on your report.
The first thing we want to delete from your credit file would be the 100-word explanation. In essence, the explanation is seen as an admission of guilt. It’s actually the last thing you want to do. It verifies that something happened. You don’t want to do that.
Myth No. 5 – Paying off a past-due account (like a collection account or a charge off) will change your account to a “paid” status and it will no longer reflect negatively.
It is nearly impossible to completely fix your credit unless you settle your unpaid debts. However, as strange as it may sound, paying off a debt can have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven years. The date of last activity starts the 7 or 10-year time period. Making a payment “resets” the clock because it is considered new activity. So if this item was two years old, when you make a payment on the collection, the two years are wiped away and you start at day one again. It appears to the credit scoring computer as an item that happened yesterday.
Anything that happened yesterday affects your credit score more than something from two years ago does. This will damage your report, as it looks like the credit bureau forced you to pay up. Since you can do more harm than good, even though your intentions are right, it is always best to work with a professional when trying to restore your credit.
Myth No. 6 – Some people believe that a poor credit report can be off-set by building new credit.
Even one negative item on your credit report can have serious negative consequences. In today’s computer world, the decision to approve a new loan is rarely made by a human being. Your score is determined by a computer program. One negative item can send interest rates soaring.
You can have a small amount of negative credit a year or two ago. The last year or two has been great. A couple of those older accounts, regardless of how much good credit you now have, can cause you to be declined for additional credit, make you pay higher interest rates and waste thousands of your hard earned dollars.
Myth No. 7 – Credit bureaus are part of the government and are unquestionable.
The credit bureaus are in business to make an impression on their stockholders since they are publicly traded companies. They are NOT agencies of the government. In fact, the industry is one of the most heavily regulated. It has recently been revealed in a survey, by an independent group, that over 70% of all credit reports have an error on them. Due to the prevalence of mistakes, consumer protection legislation has been drawn up which allows the consumer the right to challenge the bureaus and force them to remove any incorrect data, information that is out-of-date or data that cannot be verified.
Myth No. 8 – It is against the law for creditors to remove a negative-listing on my credit record. Negative-listings are required by law to remain on the credit report for at least seven years.
When talking to collection agencies, credit grantors or the credit bureaus, keep in mind that you can expect to be given all kinds of quasi-legal drivel by people who are over worked and under trained. The law states that negative information must be removed after seven years. It sets a maximum, but not a minimum. The credit bureau can remove an item whenever it suits them.
Myth No. 9 – Many people share a belief that by getting a federal tax ID or altering a few numbers of their social security number, a new credit file will be created.
It’s extremely difficult to create a new credit file by this scheming, not to mention illegal, activity. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do.
It might have worked 10, 15 or 20 years ago. But because of all the computer linking systems now, giving fraudulent information on a credit report is nearly impossible to get away with, let alone the fact that it’s a criminal offense.
It’s in your best interest to hire adequate representation. Face the music and confront the credit bureaus, armed with the rights that Congress has granted you through the consumer protection laws.
Myth No. 10 – Credit counseling services can help you restore your credit.
Credit counseling services are agencies that are set up to help you renegotiate your credit cards and other debt. They put you on a budget and you make one payment to them. They in turn pay all the bills for you.
People who are in debt or who are trying to avoid going bankrupt can seek help from these nonprofit consumer credit counseling services. (CCCS’s) However, these companies are controlled and funded by the credit bureaus and the credit grantors, like the big credit card companies. They actually fund these agencies.
Your creditors will usually make a note on your credit report if you’re working with one of these consumer credit counseling services. Potential credit grantors are scared off by this almost as much as a Chapter 13 bankruptcy. Some of the worst credit reports out there have been participants in a credit counseling service or similar program.
To be honest, it IS simple to challenge a credit report. However, as an everyday person, it’s amazingly difficult and frustrating to get results from the credit bureaus. Here’s why.
This is a little-known fact. More complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years due to failure to respond properly to charges.
The main objective of credit bureaus is to protect their profits. They are NOT government agencies. They are for profit organizations. Anytime they have to investigate a consumer disputes it eats into those profits. Investigations take up time and energy too. The credit bureaus do everything in their power to make restoring your credit exceedingly difficult, short of sparking more massive lawsuits.
Attempting to restore your own credit means you must be willing to spend time learning about the process. This is why it is so difficult when you are inexperienced. Itmost cases you may be less effective than if you hired a professional. Realize that credit restoration will most likely take longer than you expected.
Myth No. 2 –A negative item that is successfully removed from your credit report will simply reappear again.
The reality is that a creditor has 30 days to verify a dispute. If the credit bureau has not heard from the creditor within that timeframe, they must delete the item from your report. Sometimes the bureaus will perform a soft delete. This is where they delete the item from your report but, will reinsert the item if they hear from the creditor within a week or two of the 30 days.
If this happens, the item can be disputed again. However, most of the time, once an item is deleted, it is gone for good. By using our preferred attorney’s, you can be sure your item will be disputed over and over again until it is removed. We have experienced a 96% success rate with this.
Myth No. 3 – Bankruptcies, foreclosures and tax liens can never be taken off your credit report.
Approached correctly, any negative listing can be removed. That is why it is best to work with a professional. They have the experience and know how to remove these items.
Myth No. 4 – The credit agency permits a 100-word paragraph to be entered on an account to explain the situation. Creditor’s take this statement into consideration when they’re weighing they’re options about extending credit.This seems reasonable, but it’s not correct. When we talk about creditors, we’re talking about companies who are loaning money – for credit cards, mortgages, cars, department store credit cards. Very few of these companies will consider any information you submit in a paragraph explanation. The only items verified on the statement are the negative items on your report.
The first thing we want to delete from your credit file would be the 100-word explanation. In essence, the explanation is seen as an admission of guilt. It’s actually the last thing you want to do. It verifies that something happened. You don’t want to do that.
Myth No. 5 – Paying off a past-due account (like a collection account or a charge off) will change your account to a “paid” status and it will no longer reflect negatively.
It is nearly impossible to completely fix your credit unless you settle your unpaid debts. However, as strange as it may sound, paying off a debt can have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven years. The date of last activity starts the 7 or 10-year time period. Making a payment “resets” the clock because it is considered new activity. So if this item was two years old, when you make a payment on the collection, the two years are wiped away and you start at day one again. It appears to the credit scoring computer as an item that happened yesterday.
Anything that happened yesterday affects your credit score more than something from two years ago does. This will damage your report, as it looks like the credit bureau forced you to pay up. Since you can do more harm than good, even though your intentions are right, it is always best to work with a professional when trying to restore your credit.
Myth No. 6 – Some people believe that a poor credit report can be off-set by building new credit.
Even one negative item on your credit report can have serious negative consequences. In today’s computer world, the decision to approve a new loan is rarely made by a human being. Your score is determined by a computer program. One negative item can send interest rates soaring.
You can have a small amount of negative credit a year or two ago. The last year or two has been great. A couple of those older accounts, regardless of how much good credit you now have, can cause you to be declined for additional credit, make you pay higher interest rates and waste thousands of your hard earned dollars.
Myth No. 7 – Credit bureaus are part of the government and are unquestionable.
The credit bureaus are in business to make an impression on their stockholders since they are publicly traded companies. They are NOT agencies of the government. In fact, the industry is one of the most heavily regulated. It has recently been revealed in a survey, by an independent group, that over 70% of all credit reports have an error on them. Due to the prevalence of mistakes, consumer protection legislation has been drawn up which allows the consumer the right to challenge the bureaus and force them to remove any incorrect data, information that is out-of-date or data that cannot be verified.
Myth No. 8 – It is against the law for creditors to remove a negative-listing on my credit record. Negative-listings are required by law to remain on the credit report for at least seven years.
When talking to collection agencies, credit grantors or the credit bureaus, keep in mind that you can expect to be given all kinds of quasi-legal drivel by people who are over worked and under trained. The law states that negative information must be removed after seven years. It sets a maximum, but not a minimum. The credit bureau can remove an item whenever it suits them.
Myth No. 9 – Many people share a belief that by getting a federal tax ID or altering a few numbers of their social security number, a new credit file will be created.
It’s extremely difficult to create a new credit file by this scheming, not to mention illegal, activity. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do.
It might have worked 10, 15 or 20 years ago. But because of all the computer linking systems now, giving fraudulent information on a credit report is nearly impossible to get away with, let alone the fact that it’s a criminal offense.
It’s in your best interest to hire adequate representation. Face the music and confront the credit bureaus, armed with the rights that Congress has granted you through the consumer protection laws.
Myth No. 10 – Credit counseling services can help you restore your credit.
Credit counseling services are agencies that are set up to help you renegotiate your credit cards and other debt. They put you on a budget and you make one payment to them. They in turn pay all the bills for you.
People who are in debt or who are trying to avoid going bankrupt can seek help from these nonprofit consumer credit counseling services. (CCCS’s) However, these companies are controlled and funded by the credit bureaus and the credit grantors, like the big credit card companies. They actually fund these agencies.
Your creditors will usually make a note on your credit report if you’re working with one of these consumer credit counseling services. Potential credit grantors are scared off by this almost as much as a Chapter 13 bankruptcy. Some of the worst credit reports out there have been participants in a credit counseling service or similar program.
Monday, September 14, 2009
New Marketing Dawns For Real Estate
The internet has become such a common part of our everyday lives that people around the world use it for nearly everything they do. The world, at large, can now stay connected with friends and business associates, shop for nearly any kind of goods, track finances, transact business and virtually do almost anything else.
The real estate world has been shaken up with the monetary forecast as of late but now it’s got a new tool. Web 2.0 real estate marketing is helping agents achieve some amazing things.
Many people aren’t familiar with web 2.0 or know what it’s all about. Web 2.0 is the next generation of the internet. It is all about the way in which we exchange resources, information and with each other. Web 2.0 has given the world something simpler, more flowing to be connected with.
Realty agents using web 2.0 real estate marketing have discovered a method to reach out, across the planet to a whole new market. Using social networking sites as the foundation of their marketing efforts, sales are starting to snowball in many areas. Interestingly, many realtors never even meet face to face with their clients, thanks to web 2.0.
Social networking sites make it possible for you to create a personal page and post practically any information that you’d like about yourself so that anyone and everyone can see it. Realtors have found this amazingly useful. By utilizing other words that relate to location of the properties that are available, Real Estate agents can create a collection of pages on every one of the social networking sites.
Utilizing these sites to bring interested prospects in, Real Estate agents can generate far more interest in their properties than if they merely used a business website. Additionally, they can link their personal pages to their business sites, to increase business even more.
Web 2.0 allows you to post properties online a give anyone a virtual tour.. A lot of Realty agents are receiving interest from out of the country for houses in their local area. Many homes are being sold, sight unseen, within hours of a virtual tour by a prospect. This ease and flexibility to share information is unprecedented in the industry.
With web 2.0 marketing, a entirety new era of real estate is beginning. Until now, people haven’t been able to communicate with each other so easily and use the same resources, across the same medium. With the market in it’s current slump, social networking is breathing new life into an old game.
The real estate world has been shaken up with the monetary forecast as of late but now it’s got a new tool. Web 2.0 real estate marketing is helping agents achieve some amazing things.
Many people aren’t familiar with web 2.0 or know what it’s all about. Web 2.0 is the next generation of the internet. It is all about the way in which we exchange resources, information and with each other. Web 2.0 has given the world something simpler, more flowing to be connected with.
Realty agents using web 2.0 real estate marketing have discovered a method to reach out, across the planet to a whole new market. Using social networking sites as the foundation of their marketing efforts, sales are starting to snowball in many areas. Interestingly, many realtors never even meet face to face with their clients, thanks to web 2.0.
Social networking sites make it possible for you to create a personal page and post practically any information that you’d like about yourself so that anyone and everyone can see it. Realtors have found this amazingly useful. By utilizing other words that relate to location of the properties that are available, Real Estate agents can create a collection of pages on every one of the social networking sites.
Utilizing these sites to bring interested prospects in, Real Estate agents can generate far more interest in their properties than if they merely used a business website. Additionally, they can link their personal pages to their business sites, to increase business even more.
Web 2.0 allows you to post properties online a give anyone a virtual tour.. A lot of Realty agents are receiving interest from out of the country for houses in their local area. Many homes are being sold, sight unseen, within hours of a virtual tour by a prospect. This ease and flexibility to share information is unprecedented in the industry.
With web 2.0 marketing, a entirety new era of real estate is beginning. Until now, people haven’t been able to communicate with each other so easily and use the same resources, across the same medium. With the market in it’s current slump, social networking is breathing new life into an old game.
Monday, September 7, 2009
Building Construction
For the successful execution of a project, effective planning is essential. Those involved with the design and execution of the infrastructure in question must consider the environment impact of the job, the successful scheduling, budgeting, site safety, availability of materials, logistics, inconvenience to the public caused by construction delays, preparing, etc.
Building construction is the process of adding structure to real property. The vast majority of building construction projects are small renovations, such as addition of a room, or renovation of a bathroom. Often, the owner of the property acts as laborer, paymaster, and design team for the entire project. However, all building construction projects include some elements in common - design, financial, and legal considerations. Many projects of varying sizes reach undesirable end results, such as structural collapse, cost overruns, and/or litigation reason, those with experience in the field make detailed plans and maintain careful oversight during the project to ensure a positive outcome.
Building construction is procured privately or publicly utilizing various delivery methodologies, including hard bid, negotiated price, traditional, management contracting, construction
Residential construction practices, technologies, and resources must conform to local building authority regulations and codes of practice. Materials readily available in the area generally dictate the construction materials used (e.g. brick versus stone, versus timber). Cost of construction on a per square metre (or per square foot) basis for houses can vary dramatically based on site conditions, local regulations, economies of scale (custom designed homes are always more expensive to build) and the availability of skilled trades people. As residential (as well as all other types of construction) can generate a lot of waste, careful planning again is needed here.
The most popular method of residential construction in the United States is wood framed construction. As efficiency codes have come into effect in recent years, new construction technologies and methods have emerged. University Construction Management departments are on the cutting edge of the newest methods of construction intended to improve efficiency, performance and reduce construction waste.
John Schmidt
Innovative Design
jps1914@bellsouth.net
336-501-8918
Building construction is the process of adding structure to real property. The vast majority of building construction projects are small renovations, such as addition of a room, or renovation of a bathroom. Often, the owner of the property acts as laborer, paymaster, and design team for the entire project. However, all building construction projects include some elements in common - design, financial, and legal considerations. Many projects of varying sizes reach undesirable end results, such as structural collapse, cost overruns, and/or litigation reason, those with experience in the field make detailed plans and maintain careful oversight during the project to ensure a positive outcome.
Building construction is procured privately or publicly utilizing various delivery methodologies, including hard bid, negotiated price, traditional, management contracting, construction
Residential construction practices, technologies, and resources must conform to local building authority regulations and codes of practice. Materials readily available in the area generally dictate the construction materials used (e.g. brick versus stone, versus timber). Cost of construction on a per square metre (or per square foot) basis for houses can vary dramatically based on site conditions, local regulations, economies of scale (custom designed homes are always more expensive to build) and the availability of skilled trades people. As residential (as well as all other types of construction) can generate a lot of waste, careful planning again is needed here.
The most popular method of residential construction in the United States is wood framed construction. As efficiency codes have come into effect in recent years, new construction technologies and methods have emerged. University Construction Management departments are on the cutting edge of the newest methods of construction intended to improve efficiency, performance and reduce construction waste.
John Schmidt
Innovative Design
jps1914@bellsouth.net
336-501-8918
Monday, August 31, 2009
12 Steps You Must Know When Buying A Short Sale Property
1) Locate homes which are in default, as early as possible, even possibly before the formal non-judicial foreclosure begins.
2) Search foreclosed homes with plenty of lead time before the Trustee’s Sale (you may need weeks or months of lead time.)
3) Once you have created short list of such homes, narrow that list to only those homes you would likely purchase for yourself.
4) Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features, via a good database such as the local MLS.
5) Determine the exact mortgage balance and status of default or foreclosure.
6) Be sure to find out if there is a second or third mortgage on the house.
7) Research the possibility of other liens (tax liens, mechanic’s liens, labor liens, state liens, etc.)
8) Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder (email, fax, phone, etc)
9) Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)
10) Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)
11) Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home, prices, the local market, and justification of your offering price. Your offer must be prepared very professionally or the bank will merely overlook you, without giving your offer a second look. You have to be able to make a case to the bank, as to why they should sell to you at this price.
12) In order to close on a deal in a short sale, you must follow through with all parties involved.
2) Search foreclosed homes with plenty of lead time before the Trustee’s Sale (you may need weeks or months of lead time.)
3) Once you have created short list of such homes, narrow that list to only those homes you would likely purchase for yourself.
4) Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features, via a good database such as the local MLS.
5) Determine the exact mortgage balance and status of default or foreclosure.
6) Be sure to find out if there is a second or third mortgage on the house.
7) Research the possibility of other liens (tax liens, mechanic’s liens, labor liens, state liens, etc.)
8) Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder (email, fax, phone, etc)
9) Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)
10) Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)
11) Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home, prices, the local market, and justification of your offering price. Your offer must be prepared very professionally or the bank will merely overlook you, without giving your offer a second look. You have to be able to make a case to the bank, as to why they should sell to you at this price.
12) In order to close on a deal in a short sale, you must follow through with all parties involved.
Monday, August 24, 2009
10 Steps to Sell You Home Faster In A Slow Market
You probably already know that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are now selling. People who have owned a property for several years are still generally well ahead in the game. We can't predict what 2009 will bring, but so far, most markets have slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, though today's sales might not be as prosperous as they would have been in 2006. But all homeowners want to get the highest possible profits. How do you go about this? There are 10 negotiating steps that a seller can follow to assure that a person's home gets the best price and is sold quickly.
Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.
Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract which have become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addendum. Consult your attorney or broker for further detailed information.
Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.
Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.
Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.
Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.
Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.
Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.
Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.
Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.
As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.
Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.
Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract which have become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addendum. Consult your attorney or broker for further detailed information.
Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.
Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.
Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.
Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.
Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.
Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.
Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.
Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.
As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.
Monday, August 17, 2009
10 "Green" Home Tips
These "Greenest" homes are already built to be "Green". But that does not mean that you cannot take an existing home and make it more eco-friendly. This is how you can do that:
1) Keep original windows intact. Studies show that older windows can perform as well as vinyl replacements. Weatherstrip them so that they seal tightly, caulk the exterior trim, and repair cracked glazing or putty around glass panels. You'll reduce landfill waste and the demand for vinyl, a non-biodegradable material that gives off toxic by products when it is made.
2) Use light paint colors for your house exterior. Lighter colors reflect heat better than darker ones.
3) Insulate the attic, basement, and crawl space. About 20% of energy costs come from heat loss in those areas.
4) Reuse old materials such as brick, stone, glass, and slate when making home improvements. If you are rebuilding a staircase, for example, use wood from the summer kitchen or shed that could not be saved.
5) Install fireplace draft stoppers, attic door covers, and dryer vent seals that open only when your dryer is in use. An open dampener in a fireplace can increase energy costs by 30%, and attic doors and dryer vent ducts are notorious energy sieves.
6) Plant trees. Evergreen trees on the north and west sides of your house can block winter winds, and leafy trees on the south and west provide shade from the summer sun.
7) Have an energy audit done by your local utility company. Audits can help pinpoint problem areas and measure energy savings after you improve your home's efficiency.
8) In the summer, open the windows and use fans and dehumidifiers, which consume less energy than air conditioning. Many old houses were designed with good cross ventilation; take advantage of your home's layout.
9) Keep doors airtight by weatherstripping, caulking, and painting them regularly. Recent studies suggest that installing a storm door is not necessarily cost-effective.
10) Restore porches and awnings. Porches, awnings, and shutters were intended for shade and insulation. To save energy, draw shades on winter nights and summer days.
1) Keep original windows intact. Studies show that older windows can perform as well as vinyl replacements. Weatherstrip them so that they seal tightly, caulk the exterior trim, and repair cracked glazing or putty around glass panels. You'll reduce landfill waste and the demand for vinyl, a non-biodegradable material that gives off toxic by products when it is made.
2) Use light paint colors for your house exterior. Lighter colors reflect heat better than darker ones.
3) Insulate the attic, basement, and crawl space. About 20% of energy costs come from heat loss in those areas.
4) Reuse old materials such as brick, stone, glass, and slate when making home improvements. If you are rebuilding a staircase, for example, use wood from the summer kitchen or shed that could not be saved.
5) Install fireplace draft stoppers, attic door covers, and dryer vent seals that open only when your dryer is in use. An open dampener in a fireplace can increase energy costs by 30%, and attic doors and dryer vent ducts are notorious energy sieves.
6) Plant trees. Evergreen trees on the north and west sides of your house can block winter winds, and leafy trees on the south and west provide shade from the summer sun.
7) Have an energy audit done by your local utility company. Audits can help pinpoint problem areas and measure energy savings after you improve your home's efficiency.
8) In the summer, open the windows and use fans and dehumidifiers, which consume less energy than air conditioning. Many old houses were designed with good cross ventilation; take advantage of your home's layout.
9) Keep doors airtight by weatherstripping, caulking, and painting them regularly. Recent studies suggest that installing a storm door is not necessarily cost-effective.
10) Restore porches and awnings. Porches, awnings, and shutters were intended for shade and insulation. To save energy, draw shades on winter nights and summer days.
Monday, August 10, 2009
Truth in Lending Act Changes!
The Housing and Economic Recovery Act of 2008 included several revisions to TILA. These important revisions go into effect July 30, 2009.
The key changes effective with all applications on or after July 30, 2009 are:
1) Collection of fees: Lenders cannot collect a fee from the consumer, other than a reasonable fee for obtaining the consumer's credit history, until the consumer is in receipt of the initial TIL.
2) TIL disclosure applicability: Lenders must now provide a TIL on refinance transactions.
3) New statement added to all TIL disclosures: You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.
4) Initial TIL waiting period: A loan cannot close until seven business days from the delivery of the initial TIL. For example: Lender places loan disclosures in the mail Monday, August 3rd, the loan cannot close until on or after Tuesday, August 11th. Business days are the same used for rescission--Monday through Saturday excluding legal public holidays.
5) APR re-disclosure tolerance: After the initial TIL is given if there are any changes that effect the APR and cause the APR to go up by .125% for fixed rate products (or .25% for ARM products) a new TIL must be given to the borrower. The new waiting period is three business days after the borrower receives the revised disclosures. A borrower is presumed to have received the new disclosures within three business days if placed in the mail. This creates a six day waiting period, three days to receive the disclosures and three days waiting period.
The key is for a buyer to lock their loans early enough so new waiting periods do not effect their closing date.
This information was provided by:
Richard Watkins
Sr. Mortgage Consultant
National City Mortgage
Richard.Watkins@ncmc.com
The key changes effective with all applications on or after July 30, 2009 are:
1) Collection of fees: Lenders cannot collect a fee from the consumer, other than a reasonable fee for obtaining the consumer's credit history, until the consumer is in receipt of the initial TIL.
2) TIL disclosure applicability: Lenders must now provide a TIL on refinance transactions.
3) New statement added to all TIL disclosures: You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.
4) Initial TIL waiting period: A loan cannot close until seven business days from the delivery of the initial TIL. For example: Lender places loan disclosures in the mail Monday, August 3rd, the loan cannot close until on or after Tuesday, August 11th. Business days are the same used for rescission--Monday through Saturday excluding legal public holidays.
5) APR re-disclosure tolerance: After the initial TIL is given if there are any changes that effect the APR and cause the APR to go up by .125% for fixed rate products (or .25% for ARM products) a new TIL must be given to the borrower. The new waiting period is three business days after the borrower receives the revised disclosures. A borrower is presumed to have received the new disclosures within three business days if placed in the mail. This creates a six day waiting period, three days to receive the disclosures and three days waiting period.
The key is for a buyer to lock their loans early enough so new waiting periods do not effect their closing date.
This information was provided by:
Richard Watkins
Sr. Mortgage Consultant
National City Mortgage
Richard.Watkins@ncmc.com
Thursday, July 30, 2009
Fleming Meadows Video Tour of Top Hat Builders Home
This is for sale and has been drastically reduced. Please disregard the bad camera work, because it was my first video tour.
What Buyers Should Not Do Before Purchasing!
1) Making an offer on a home without being prequalified: Why waste your time looking at homes you cannot afford, or deciding on a home that does not fit your needs when you could qualify for a home that does.
2) Not having a home inspection: A qualified home inspector will detect issues that many buyers can overlook.
3) Limiting your search to open houses, ads, or the internet: Many internet sites are out dated and the homes have already sold. A Realtor has the most up to date information that is unavailable to the general public.
4) Choosing a Real Estate agent who is not committed to forming a strong business relationship with you: Make sure you find a Realtor that will help you before, during, and after a sale.
5) Thinking there is only one perfect house out there: Buying a home is a process of elimination, not selection.
6) Not considering long-term needs: Is the home going to fit your needs 3-5 years down the road?
7) Not examining insurance issues: Speaking with the right insurance agent can determine if you are getting adequate coverage.
8) Not buying a home protection plan: Major repairs that costs major money can be avoided with your typical 1 year home warranty plan. Ask your Realtor about what plan would be good for you.
9) Not knowing total costs involved: There could be more fees than you expect when purchasing a home, especially for the first time.
10) Not following through on due diligence: You are purchasing not only a place to live, but your future and you need to make sure you are asking enough questions before you purchase.
2) Not having a home inspection: A qualified home inspector will detect issues that many buyers can overlook.
3) Limiting your search to open houses, ads, or the internet: Many internet sites are out dated and the homes have already sold. A Realtor has the most up to date information that is unavailable to the general public.
4) Choosing a Real Estate agent who is not committed to forming a strong business relationship with you: Make sure you find a Realtor that will help you before, during, and after a sale.
5) Thinking there is only one perfect house out there: Buying a home is a process of elimination, not selection.
6) Not considering long-term needs: Is the home going to fit your needs 3-5 years down the road?
7) Not examining insurance issues: Speaking with the right insurance agent can determine if you are getting adequate coverage.
8) Not buying a home protection plan: Major repairs that costs major money can be avoided with your typical 1 year home warranty plan. Ask your Realtor about what plan would be good for you.
9) Not knowing total costs involved: There could be more fees than you expect when purchasing a home, especially for the first time.
10) Not following through on due diligence: You are purchasing not only a place to live, but your future and you need to make sure you are asking enough questions before you purchase.
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