TheDawgByte

Here are 10 low cost ways to improve your home's curb appeal to potential buyers:

1.   Trim bushes so they don't block windows and cut down on light.

2.   Edge the grass around walks and trees.

3.   Upgrade outside lighting.

4.   Buy a new doormat.

5.   Polish or replace your house numbers.

6.   Purchase and install a new mailbox.

7.   Clean your gutters.

8.   Sweep and wash down your walks and driveway.

9.   Put a pot of bright flowers on your porch.

10. Cut and water the lawn.

1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can't participate.

4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you're in good financial standing, with a strong income and little other debt.

Source: California Association of Realtors®

     Like so many, I began blogging with the expectation that I would pen such moving, such important, such critically required articles of information and resources that The Los Angeles Times or The Wall Street Journal would be clamoring for the rights to publish them.  My blogs would ring with such truth and such power that all would claim them...validate them...as exceptional examples of Pulitzer potential. 

     Then Life happened! 

     First came increased business in the form of Buyers wanting to take advantage of low interest rates and low home prices.  Then came some rough Escrows.  Let's see...oh yes...increased listings over 2009.  Thirty six birthdays...not mine...family and friends.  Three weddings and two funerals over the course of 2010...again, thankfully not mine.  Two bouts of flu set me back a few days.  Oh yes, I started holiday shopping in October to avoid the mall rush in December.  Did I mention the two accidents?  Twice I was rear-ended (well, not me...my car actually).  Both times by fellow Realtors texting while driving and not paying attention to the fact that traffic had stopped. 

     But no excuses for 2011!

     This year I have a plan.  Every Saturday morning, before I shave, shower or swallow that first glorious taste of Vermont Green Mountain coffee, I promise...no!...I vow (that's stronger than a promise, right?) to sit down at this very desk and pc and write to my blog.  I will compose, communicate and inform.  I will...sorry, gotta go, a client call.

Credit scores, along with your overall income and debt, are big factors in determining whether you'll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else's poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don't charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You're penalized less for problems after a year.

5. Don't order items for your new home on credit - such as appliances and furniture - until after the loan is approved. The amounts will add to your debt.

6. Don't open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.

     If you are faced with selling your home due to an unforeseen change in your financial well-being and you expect the total amount you owe on your mortgage will be more than the selling price you can get for your home in the current real estate market in your area, you may be looking at a Short Sale situation.  A Short Sale is one where the net proceeds from the sale of your home will not cover your total mortgage obligation and closing costs AND you don't have any other sources of money to cover the deficiency.  What can you do?  What are your options?

     STEP 1.  Consider a Loan Modification:  Contact your mortgage lender and ask them if they offer any programs to help you stay in your home.  They may be willing to refinance your existing mortgage at a lower interest rate; they may agree to a modified payment plan to help you get caught up; they may offer a forbearance period, if your distressed financial situation is temporary.  Should a loan modification still not be enough for your distressed financial situation then a Short Sale might be your best option.

     STEP 2.  Contact a Real Estate Professional:  Short Sales seem to have a life all their own!  Every week seems to bring a new Federal regulation and guideline, lenders vary in their ability to cope with the increasing numbers of Short Sales seeking approval, and not all real estate agents are experienced in dealing with Short Sales.  You want to work with a real estate professional who has strong negotiating skills, a working knowledge of the Short Sale process and a track record of success in getting Short Sales approved and closed.

     STEP 3.  Gather Your Documentation:  Your lender will provide you with a list of documents they will require to consider a Short Sale.  This "Short Sale Package" typically will include:

                    .  A hardship letter detailing your financial distress
                    .  Proof of income and assets
                    .  Copy of purchase contract and listing agreement
                    .  Copies of your federal income tax returns for previous two years.

     STEP 4.  Wait:  Short Sales are anything but short!  Even the most organized and complete Short Sale Package will take time for the lender's review.  It can and it will take from several weeks to several months for this review.  If you only have one mortgage, this step can take up to two months.  If you have a first and a second mortgage, expect this step to take up to three months.  When the lender does finally respond, it can be with a written Short Sale approval, a counter-offer or a denial.

     STEP 5.  Lower Your Expectations:  Even if your Short Sale is approved in writing by your lender, it may not be the end of your financial concerns.  You lender may request that you sign a promissory note agreeing to pay back the amount of your loan that wasn't paid off by the Short Sale.  While the 2007 Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act provides that homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012, this real estate professional strongly encourages you to consult with a real estate attorney and tax adviser to see if you qualify.  Short Sales do impact your credit score.  However, a Short Sale tends to impact your credit score less than a foreclosure or bankruptcy.

It can be easy for homebuyers to overlook home insurance costs. Most buyers tend to focus on factors such as quality of neighborhood, property taxes, school districts and available recreational and cultural outlets. But the seemingly mundane detail of home insurance can add up to a big investment. The size, location, construction and overall condition of a house can affect insurance cost, choice and availability, according to the Insurance Information Institute. When looking at prospective homes, the Institute recommends that homebuyers consider the following:

 •  Where is the nearest fire department? Houses located near a fire station usually cost less to insure.

 •  Are the plumbing and electrical systems in good condition? Poorly maintained, unsafe and/or outdated systems are more costly to insure than well-maintained ones.

•   Is the home vulnerable to wind damage? A beach home may be more susceptible to wind damage and can be more costly to insure than homes located inland.

•   Is the home at risk for flooding or located in a flood zone? Most standard homeowners' insurance policies do not cover floods, so you may need a separate policy, which you can get through the National Flood Insurance Program, which is serviced by private carriers, or from a few specialty insurers.

•   Is the home located in an earthquake-prone area? If so, earthquake insurance requires an endorsement or a separate policy.

•   Is the house well constructed and well maintained? Homes built with disaster-resistant materials and designed to meet current building codes are more likely to withstand natural disasters.

Your home is your biggest investment.  Make sure you protect it with the right type of homeowners' insurance policy.

     One of the most frequently asked questions that we receive at Altus Realty Solutions is "What is the real estate market doing?"  While that is a good question, perhaps a better question would be "How is the local real estate market doing?"  So many times, the real estate market information provided on television and in print media reflects a generalized national view.  So how best to address both a national and local perspective when seeking information about the real estate market?

     I'd like to invite our readers to the Housing Trends eNewsletter.  This eNewsletter is specially designed to give the reader both national and local market information to use when they are considering the purchase of a home, putting their home on the market, or seeking out issues of interest to homeowners.

     From timely press releases with charts and videos to key market indicators...from real estate sales and price statistics to local neighborhood information...from mortgage rates to informative consumer articles, our Housing Trends eNewsletter is there for you each month.  There's even a link to the "Home Evaluator" that gives you the opportunity to determine the value of your home with a free evaluation report.

     Please click on the following link to view our May-2010 Housing Trends eNewsletter:
http://scottrhinehart.housingtrendsenewsletter.com?Newsletter_ID248&Period_ID=185

     The Banking, Finance and Insurance committee in the California State Senate is considering  Senate Bill 1000 (Correa)  sponsored by the California Association of Realtors that would require lenders to accept an appraisal, even if that appraisal had been obtained and paid for by the buyer's previous lender.  Senate Bill 1000 would make appraisals "portable" if a buyer must change lenders.  As you would expect, the big banks are opposing this bill with full force and strong lobbying efforts.

     The big banks have a financial incentive to oppose Senate Bill 1000.  Many lenders have spun off Appraisal Management Companies (AMCs) and these AMCs have become a good income stream for the big banks.  Current law permits, but does not require, the big banks to use an appraisal ordered by a different lender...so most require a second appraisal, even though the buyer has already paid for an appraisal on the subject property.

     Senate Bill 1000 would change that loophole and require that an existing appraisal on a subject property be honored, with no further cost to the buyer.  FHA already requires that appraisals be "portable" as of January 1, 2010...meaning an FHA approved lender accept an appraisal completed by another FHA approved lender, when the borrower switches from one lender to another.

    Senate Bill 1000 is coming up for a vote in the California Senate Banking, Finance and Insurance committee on May 5, 2010.  I encourage all readers in California to call Senator Ron Calderon at 1-800-672-3135 and enter the number 179535555 to express your support for this bill.

    Appraisals cost between $200 and $500 and I believe it is unfair and unnecessary to force a buyer to purchase another appraisal on the same property if they must switch lenders.  It is not just the additional cost to the buyer.  The additional delay in getting that second appraisal can mean additional hardship for the buyer also.  Please call Senator Ron Calderon at the number above to express your support for Senate Bill 1000.

     It's hard to imagine the approach of Spring, when you're currently shoveling a foot or more of snow off your driveway or stacking another row of sandbags against the base of the hillside in your backyard.  Yet, Spring will be here and soon.  Ah, Spring, blooming flowers, green leaves on trees, warmer days and nights and that yearly ritual of cleaning.  Not just any regular cleaning...the big one: Spring Cleaning!

     For many, Spring Cleaning may entail some minor and major repairs of damages caused by Winter's hold: broken pipes, flooded basements, leaking roofs and more.  That being the case, I thought it might be helpful to go over a few tips that our State's Contractor License Board compiled for consumers needing the services of a contractor.

1.    Hire only licensed contractors.

2.    Check a contractors' license number. (Easily done online in many states or by phone in those not online.)

3.    Get three references, review past work.

4.    Get at least three bids. 

5.    Get a written contract and DO NOT sign anything until you completely understand the terms.

6.    Never pay more than 10% down or $1,000, whichever is less.


7.    Don't let your payments get ahead of the contractor's work.  Keep records of all payments.

8.    Don't make a final payment until you're satisfied with the job.


9.    Don't pay cash!

10.  Keep a job file of all papers relating to your project.

     These 10 tips are from the California State License Board.  Your state may have other suggestions, so be sure to check with them. 

     I've considered blogging on this topic for several months. Each time I put fingers to keyboard, I felt that my words failed to express my utter disgust for the big banks in this country: on the professional side, it's the mess known as Short Sales and Loan Modifications...on the personal side, it's having my personal and business credit card interest rates raised when I haven't missed a payment or been late.

     Like many, I've cursed the heavens because I felt helpless to do anything.  Recently, I discovered that I do have some power and some control.  The power is pure genius in its simplicity and impact.  Move Your Money from the giant financial beasts that devour your dignity and your deposits like some raging monster destroying Tokyo.  Forget this notion of "too big to fail"!  Put the giant monsters on a diet.  Move Your Money from them to your local credit union or community bank.

     But wait a minute!  What about the convenience of their nationwide ATM machines?  If I go to a smaller bank that doesn't have that national ATM chain, I'll be hit with withdrawal fees.  That's true!  And that is part of their master-plan to keep us all under their thumbs so they can bleed us dry with all sorts of new fees.  Here is my answer to that:  Move Your Money to a community bank or credit union and when you need some quick cash from an ATM take your new ATM card into a nearby store or gas station and buy some gum or beef jerky and then get cash back.  Sure, there will be some inconveniences, but imagine how you'll feel knowing that the financial beasts are not picking your pockets any more.

     It's time to give the big financial beasts a shot across the bow of their greed and arrogance.  It's time to pull our wallets from between their gluttonous and insolent fangs.  It's time to make them "lean enough to fail" .  The American people pulled their butts back from disaster once...never again.  Do I sound mad and angry?  Well, I am.  Remember the great scene from the movie "Network" when he raises the window and screams out into the world, "I'm mad as hell and I'm not going to take it anymore!". 

     The people in this country need to open their windows and tell their neighbors and their friends to "move your money".  We all should be mad as hell at the giant banks for their greed and arrogance and we should be mad at ourselves for feeling helpless to do anything about it as we watch more and more fees being attached to our credit cards, checking accounts and savings accounts.  Still not convinced?  Go to www.MoveYourMoney.info for more informatin.