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Friday, December 31, 2010

Mindset

It's what is going on inside our head regarding everything all the time.
Turn every negative thought around as soon as possible.  We have a
choice every day regarding the attitude we will embrace for that day.
We cannot change our past.  We cannot change the fact that people
will act a certain way.  We cannot change the inevitable.  The only
thing we can do is rely on the one thing we have and that is our
attitude.  Life is 10 percent what happens to us and 90 percent how
we react to it.  And so it is with you.  You alone are in charge of
your attitude.

Ten facts we must accept:

1.    I must accept the fact that I will have a lot of days when  I simply do not
       feel like doing anything at all.  But I must do it anyway.
2.    I must accept the fact that there will be days when I spend the entire
       time in the act of failing and understand it’s part of life.  Failure is
       positive as it causes growth.
3.    I must accept the fact there is going to be a lot of days when I do not
       succeed no matter how hard I try.  Two choices…good day or bad day.
4.    I must accept the fact that building a successful business always takes
       longer than I thought it would and longer than I was told.
5.    I must accept the fact this is going to be much harder work than I
       thought it was going to be.
6.    I must accept the fact that I will need a lot of support on a regular basis
       to change how I think and how I behave.  You can’t have too much
       positive support.
7.    I must accept the fact there are a lot more things I have to learn than
       I ever imagined.  Ego gets in the way of learning.
8.    I must accept the fact that no matter how I look at the real estate
       business, it is still a numbers game and I must adjust my mindset
       to that fact.
9.    I must accept the fact that I have to do what I am supposed to do
       every day in spite of what is going on in my life.
10.  I must accept the fact that I have to keep trying, even when I’ve chosen
       to give up,  because we never know when we are going to win.

Thursday, December 30, 2010

How Does Escrow Work?

 
If you've ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you're doing something similar by opening an escrow account.
How it works
When you put money in escrow it is held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. The agent's role is to carry out the instructions agreed upon by both parties. The money is released when all the terms of the agreement are met. Escrow can be involved in anything from multimillion-dollar building projects to purchases made on online auction sites.
When it's used
When your mortgage closes, your lender will usually require you to open an escrow account to cover property taxes and homeowner's insurance. You'll make an initial deposit, followed by payments to the account every month. (Usually these are added to your regular mortgage payment.) The escrow agent will then release these funds as your taxes and insurance premiums come due.
Its purpose
The idea is to protect the lender by ensuring that you pay your taxes and insurance on time. If you default on your property tax, for example, your municipality can put a lien on the house, which would make it difficult to sell. Or if your house burns down and you've neglected to pay the insurance, the lender would be left with no collateral.
How you benefit
Escrow can benefit borrowers by helping them spread insurance and tax expenses evenly over 12 payments. For example, assume your yearly property taxes are two payments of $1,000 each, and your insurance is $400 annually. If you paid these directly, it would mean three large payments a year; your escrow costs, however, would be a manageable $200 a month.
Escrow payments
Your escrow account will have a built-in cushion -- if you miss a payment, the lender must still be able to pay your accounts on time. However, federal law prohibits lenders from requiring more than two months. expenses in escrow. And because your tax and insurance costs will change slightly from year to year, the lender will review and adjust your escrow payments annually.
When escrow may be waived
In most states, the money you place in an escrow account earns no interest for you. For that reason, many borrowers prefer to pay their taxes and insurance directly. Lenders may agree to this if your down payment is more than 20 percent, although some will raise your interest rate slightly to compensate. Once you agree to putting funds into an escrow account, however, it is difficult to cancel it, so make sure you fully understand the arrangement before your mortgage closes.

Saturday, December 25, 2010

Tips and Tricks for Getting the Most Out of Your iPad for Real Estate Business

By , About.com Guide
I had my iPad the first day possible, and have been working ever since to find the best, easiest and least expensive solutions to do as much with it in my real estate business as possible. Why reinvent the wheel when you can take advantage of my research and testing, as well as the large number if apps I bought but found not to be what I needed. You'll find some great solutions here to make your iPad a real business tool.

1. First Impressions on Opening the iPad

iPad Display of About.comJim Kimmons
Worse than a kid at Christmas, I met the Fedex person at the truck to get my iPad. Read in this article what comes in the box, as well as my impressions of this amazing Apple product.
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#1 Best Selling iPad CaseThe ZAGGmate™ - Tough Aluminum Case with built in Bluetooth Keyboardwww.ZAGG.com

2. Printing with the iPad Over the Web

While it would be nice to have a USB port to print locally, you can accomplish this task using an online service called PrinterShare This service is easy to use, with the installation of software on your computer, and the sharing of your attached printers.

3. Using the Pages App on the iPad for Real Estate Documents & Flyers

iPad Pages Flyer TemplateApple
Pages, the iWorks app for word processing is a beautiful solution for anyone who wants an easy to use word processing application that works well with images and tables. And, there's even a template for a real estate listing flyer to get you going quickly.

4. Drawing Real Estate Floor Plans & Vector Drawings on the iPad

FloorPlan with IntaglioJim Kimmons
While there are floor plan apps for the iPhone, none had been designed especially for the larger screen of the iPad when I was looking. I'm glad, as it helped me to find this vector drawing application that not only does my floor plans, but also allows complex drawings for flyers and other marketing materials.

5. Using Evernote for Real Estate Document Management on the iPad

Document ManagementiStockPhoto
I've written about the amazing features and abilities of the Evernote online note capture service. I use it a lot, and now will use it even more. You can email your iPad documents to your Evernote account, pick them up on any computer, and get them back on the iPad when you want.

6. Using an Online Backup Solution for iPad Real Estate Document Management

Backup SolutionsiStockPhoto
I've used Sugarsync for a long time now as my backup solution. It works in the background, making mirror image copies of all of my documents as I change or create them. Now, I also find that it helps me to manage, store, and retrieve my iPad documents.

7. Using the Numbers App on the iPad for Real Estate & Mortgage Calcs

Cost per prospect from a pay per click campaign.® Photo: Jim Kimmons
You can do just about anything you need in a spreadsheet application with Numbers on the iPad. Check out this short article about templates that provide fast and professional client sheets for mortgage comparisons.

8. Keynote for iPad Real Estate Presentations

iPad for Real EstateiStockPhoto
Using Keynote on the iPad to create a presentation is easy, and the ability to resize and rotate images with your fingers is fun as well. But, the huge value lies in the types of presentations you can create, and the professional look when you sit in front of a buyer or seller with the iPad. Learn here also about a cool free app to capture website screen shots to use in your presentations.
Sponsored Links
Real Estate FlyersFree property webhosting, generated flyers, and realtor social networkwww.myagent2agent.com
Real Estate GhostwritersWant prospects to come to you? Become a local realty celebrity!www.theghost.com

9. WordPress for Real Estate on the iPad

People Home Blogging© iStockPhoto
One of the first projects on my new iPad was learning what I needed to know to post to my WordPress blogs on the go. Learn at this short article about the WordPress app for the iPad, as well as how I also post with the browser to my regular admin interface.

10. Voice to Text Conversion Apps for Real Estate on the iPad

In the short article at the link, I give you four ways to get your voice notes out of the iPad via email. Three also convert your voice to text. Learn why I like them all, and which are best for your needs.

Tuesday, December 21, 2010

Get a Professional Inspection

How To Sell Your House: Declutter

Soon the government check won't be in the mail

Government announces deadline for phasing out paper benefit checks including Social Security

ap
, On Tuesday December 21, 2010, 3:58 am EST
WASHINGTON (AP) -- Before too long, the government check will no longer be in the mail.
Officials have settled on the dates when millions of people will no longer be able to get their Social Security and other benefit checks by mail.
New recipients of benefits will have to accept paperless payments starting on May 1 of next year, three months later than first proposed.
Those already on Social Security will have until March 1, 2013 to make the switch to direct deposits or a debit card.
More than 58 million retirees, disabled people and surviving family members receive Social Security or Supplemental Security benefits. Already eight out of 10 people getting federal benefits receive those payments electronically, officials say.
The switch to electronic payments will eliminate the problem of lost or stolen checks and also the problems faced by people displaced from their homes who have to worry about getting their checks mailed to them, said Richard L. Gregg, the Treasury Department's assistant fiscal secretary.
"Even though we have done a good job of encouraging people to switch over, we still are making 120 million payments by mail for Social Security every year and another 15 million annually for veterans and other types of benefits," Gregg said.
Every year, the government has to process about 600,000 claims for lost or stolen checks. Social Security will save $1 billion over the next decade from phasing out paper checks, he said.
The final rules, scheduled to be unveiled Tuesday, are very similar to the proposal the government put forward in June.
But in response to public comments, the government has decided to allow people who are 90 and over and are still getting Social Security benefit checks to continue to receive their benefits the same way. The government estimates there are 275,000 people who fall into that category.
For people who do not have accounts at a bank or credit union, the government has an option that allows them to use a Direct Express debit MasterCard issued by Comerica Bank, Treasury's financial agent. More than 1.5 million people have obtained these cards, which were first issued in 2008.
In addition to the automatic waiver from electronic payments for those 90 and over, people living in remote areas who might have trouble getting to a bank can also petition for a waiver from the new rules. Gregg said that the government expects fewer than 1 percent of current benefit recipients will petition for a waiver.
Social Security Commissioner Michael J. Astrue said that people should not wait until the deadlines to make the switch to electronic payments.
"Switching now eliminates the risks of lost and stolen checks and provides immediate access to your money on payment day," Astrue said.
The new deadlines for the switchover were announced by Treasury's Financial Management Service, the agency that processes payments for the federal government.
Congress passed a law in 1996 giving the agency the power to halt mailing paper checks for all government payments outside of refund checks from the Internal Revenue Service.
To help with the switchover for those still getting paper checks, the government has created a website, http://www.GoDirect.org and a toll-free phone number, 1-800-333-1795, that people can call for assistance

Friday, December 17, 2010

There are some great opportunities for buyers in today's real estate market. We have all heard about how one can get a great deal on a bank foreclosure. However, if you are willing and able to wait out a short sale purchase, that may be the best option.
What is a short sale? It is a sale where the seller owes more on the house that the market is willing to bear. Thus, if the seller has a valid hardship, his or her mortgage company maybe willing to accept a short payoff on the loan which would allow the home to be sold.
Why would the bank take a short payoff? Banks do not want houses back...it costs a ton of money to foreclose, maintain, repair and resell a foreclosed house. With a short sale, the bank saves tens of thousands of dollars on every potential foreclosure.
Why should a buyer consider a short sale? The biggest reason (other than a great price) is because the buyer will have a better chance of knowing the condition and history of the house. The buyer can often meet the seller and ask questions about the house, etc. The seller will ususally maintain the house untill closing as he or she has a vested interest in the sale go though. With a foreclosure, buyers are going in to the sale completely blind as to the history and condition of the house.
How does one buy a short sale? Buyers need to interview agents and make sure their agents have successfully closed short sale transactions. The process has a lot of steps and it is not handled properly the sale will not go through. Not every sale will go though even when an experienced agent is working the sale. It is best to work with an agent that can help set proper expectations and realistic time lines.
Banks are dealing on the short sale properties. The process is often lengthy and requires patience. But if a buyer can wait, he or she could get their dream home at a dream price!
If you want to bid on or sell your property as a short sale, email or call Kim Hammonds at kimsellsit. or 586-421-1598 or 586-421-1595@yahoo.com

Thursday, December 16, 2010

This Month in Real Estate (US) : December 2010

Holiday Fire Safety Tips

Holiday Fire Safety Tips

The holiday season is one of the most dangerous times of the year for household fires, so take note of these tips to reduce your risk.

To keep your household from becoming a holiday fire statistic, here are some safety tips to follow.

Cooking

Cooking is the top cause of holiday fires, according to the USFA. The most common culprit is food that's left unattended. It's easy to get distracted; take a pot holder with you when you leave the kitchen as a reminder that you have something on the stove. Make sure to keep a kitchen fire extinguisher that's rated for all types of fires, and check that smoke detectors are working.

If you're planning to deep-fry your holiday turkey, do it outside, on a flat, level surface at least 10 feet from the house.

Candles

The incidence of candle fires is four times higher during December than during other months. According to the National Fire Protection Association, four of the five most dangerous days of the year for residential candle fires are Christmas/Christmas Eve and New Year's/New Year's Eve. (The fifth is Halloween.)

To reduce the danger, maintain about a foot of space between the candle and anything that can burn. Set candles on sturdy bases or cover with hurricane globes. Never leave flames unattended. Before bed, walk through each room to make sure candles are blown out. For atmosphere without worry, consider flameless LED candles.

Christmas trees

It takes less than 30 seconds for a dry tree to engulf a room in flames, according to the Building and Fire Research Laboratory of the National Institute for Standards and Technology. "They make turpentine out of pine trees," notes Tom Olshanski, spokesman for the U.S. Fire Administration. "A Christmas tree is almost explosive when it goes."

To minimize risk, buy a fresh tree with intact needles, get a fresh cut on the trunk, and water it every day. A well-watered tree is almost impossible to ignite. Keep the tree away from heat sources, such as a fireplace or radiator, and out of traffic patterns. If you're using live garlands and other greenery, keep them at least three feet away from heating sources.

No matter how well the tree is watered, it will start to dry out after about four weeks, Olshanski says, so take it down after the holidays. Artificial trees don't pose much of a fire hazard; just make sure yours is flame-retardant.

Decorative lights

Inspect light strings, and throw out any with frayed or cracked wires or broken sockets. When decorating, don't run more than three strings of lights end to end. "Stacking the plugs is much safer when you're using a large quantity of lights," explains Brian L. Vogt, director of education for holiday lighting firm Christmas Décor. Extension cords should be in good condition and UL-rated for indoor or outdoor use. Check outdoor receptacles to make sure the ground fault interrupters don't trip. If they trip repeatedly, Vogt says, that's a sign that they need to be replaced.

When hanging lights outside, avoid using nails or staples, which can damage the wiring and increase the risk of a fire. Instead, use UL-rated clips or hangers. And take lights down within 90 days, says John Drengenberg, director of consumer safety for Underwriters Laboratories.  "If you leave them up all year round, squirrels chew on them and they get damaged by weather."

Kids playing with matches

The number of blazes--and, tragically, the number of deaths--caused by children playing with fire goes up significantly during the holidays. From January through March, 13% of fire deaths are the result of children playing with fire, the USFA reports; in December, that percentage doubles. So keep matches and lighters out of kids' reach. "We tend to underestimate the power of these tools," says Meri-K Appy, president of the nonprofit Home Safety Council. "A match or lighter could be more deadly than a loaded gun in the hands of a small child."

Fireplaces

Soot can harden on chimney walls as flammable creosote, so before the fireplace season begins, have your chimney inspected to see if it needs cleaning. Screen the fireplace to prevent embers from popping out onto the floor or carpet, and never use flammable liquids to start a fire in the fireplace. Only burn seasoned wood--no wrapping paper.

When cleaning out the fireplace, put embers in a metal container and set them outside to cool for 24 hours before disposal. 

Pat Curry is a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications

Wednesday, December 15, 2010

Jack Frost nipping at your...HOMES!


The cold is coming. Time to winterize your home!

Winterizing TIPS:
1) Furnace Inspection
  • Call an HVAC professional to inspect your furnace and clean ducts.
  • Stock up on furnace filters and change them monthly.
  • Consider switching out your thermostat for a programmable thermostat.
  • If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
  • Remove all flammable material from the area surrounding your furnace.

2) Get the Fireplace Ready

  • Cap or screen the top of the chimney to keep out rodents and birds.
  • If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote.
  • Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
  • Inspect the fireplace damper for proper opening and closing.
  • Check the mortar between bricks and tuckpoint, if necessary.

3) Check the Exterior, Doors and Windows

  • Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
  • Use weatherstripping around doors to prevent cold air from entering the home and caulk windows.
  • Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
  • If your home has a basement, consider protecting its window wells by covering them with plastic shields.
  • Switch out summer screens with glass replacements from storage. If you have storm windows, install them.

4) Inspect Roof, Gutters & Downspouts

  • If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
  • Check flashing to ensure water cannot enter the home.
  • Replace worn roof shingles or tiles.
  • Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
  • Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.

5) Service Weather-Specific Equipment

  • Drain gas from lawnmowers.
  • Service or tune-up snow blowers.
  • Replace worn rakes and snow shovels.
  • Clean, dry and store summer gardening equipment.
  • Sharpen ice choppers and buy bags of ice-melt / sand.

6) Check Foundations

  • Rake away all debris and edible vegetation from the foundation.
  • Seal up entry points to keep small animals from crawling under the house.
  • Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
  • Inspect sill plates for dry rot or pest infestation.
  • Secure crawlspace entrances.

7) Install Smoke and Carbon Monoxide Detectors

  • Some cities require a smoke detector in every room.
  • Buy extra smoke detector batteries and change them when daylight savings ends.
  • Install a carbon monoxide detector near your furnace and / or water heater.
  • Test smoke and carbon monoxide detectors to make sure they work.
  • Buy a fire extinguisher or replace an extinguisher older than 10 years.

8) Prevent Plumbing Freezes

  • Locate your water main in the event you need to shut it off in an emergency.
  • Drain all garden hoses.
  • Insulate exposed plumbing pipes.
  • Drain air conditioner pipes and, if your AC has a water shut-off valve, turn it off.
  • If you go on vacation, leave the heat on, set to at least 55 degrees.

9) Prepare Landscaping & Outdoor Surfaces

  • Trim trees if branches hang too close to the house or electrical wires.
  • Ask a gardener when your trees should be pruned to prevent winter injury.
  • Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
  • Seal driveways, brick patios and wood decks.
  • Don't automatically remove dead vegetation from gardens as some provide attractive scenery in an otherwise dreary, snow-drenched yard.
  • Move sensitive potted plants indoors or to a sheltered area.

10) Prepare an Emergency Kit

  • Buy indoor candles and matches / lighter for use during a power shortage.
  • Find the phone numbers for your utility companies and tape them near your phone or inside the phone book.
  • Buy a battery back-up to protect your computer and sensitive electronic equipment.
  • Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.
  • Prepare an evacuation plan in the event of an emergency

Friday, December 10, 2010

The Team that Works for You!

Team Advantage


        HIRE THE POWER TEAM THAT IS ON YOUR SIDE!
Team Advantage!
Contact us at Keller Williams 586-703-7949
Team Advantage has helped countless people with their real estate transactions.

             The current market demands that you hire a team that will work hard to get the job done!
                    
                ~ Hiring Team Advantage means that you don't have to face the current market conditions alone...and

                   Team Advantage puts over 50 years of collective professional experience in your corner to help you buy or sell in todays real estate market!



Our group is founded on these simple principles . . .
•It should be easy to get real estate answers and especially help and guidance when you or a loved one is facing foreclosure.

•You should always be able to get a FREE consultation.

•We always put the client first

•We always give honest advice about your unique housing needs

•We always return phone calls promptly

•We have a sterling work ethic



   We specialize in assisting buyers find the right home ~ and in helping sellers find solutions (like the short sale option to avoid foreclosure) that match their unique situation to quickly sell their home. 
       HIRE THE POWER TEAM THAT IS ON YOUR SIDE! Call 586-703-7949 and ask for Kim Hammonds.

Tuesday, December 7, 2010

Buying a Foreclosure

Buying a Foreclosure

Foreclosed and foreclosing properties dominate many of today’s U.S. real estate markets—more than four years after the sharpest observers saw the market shift coming, and more than two years after the reality hit home for millions of American home owners.

The recent Keller Williams Distressed Property Buying Survey unearthed great information about where the opportunities are, how big they are, and how smart, capable buyers are leveraging the current market.
First-time home buyers make up almost half of all buyers of bank-owned foreclosures and soon-to-be foreclosed short sale properties. They’re followed closely by investors seeking rental properties, and a third important group—homeowners who find they can move up to a bigger or better home they previously could not afford.
To help more consumers win as buyers, Keller Williams agents are now offering a workshop, “Winning with Foreclosures," that shows buyers how to prepare to be successful buying the “distressed" properties—homes that offer, according to the survey, a 10 percent to 40 percent price advantage, depending on the local market.

The truth is: these markets demand most of the same things an ordinary market demands of buyers—only more intensely and pointedly:

  • Money: Buyers must be financially qualified and ready to buy. The best properties go quickly. Buyers must look strong to lenders.
  • Motivation: Buyers must be motivated to compete successfully. Keller Williams agents urge their buyers in this market to be clear about both their “motivating why" and their criteria for the property itself (size, location, condition, floor plan, etc.)
  • Location: Contrary to the rumors, prime buying opportunities exist in almost every neighborhood and price range.
  • Condition: Buyers should understand that repair costs are not necessarily large. The Keller Williams Distressed Property Buying Survey shows the average cost to repair to be $5,000—that’s less than 3 percent of the median purchase price in the U.S. today.
  • Expert Help: Finally, smart buyers know they need to be even smarter—they become a team with a local expert agent who knows local property, pricing, lenders, and the best listing agents. A strong listing agent can be a critical advantage in seeing a distressed property through from contract to close.

So, bottom line—if you think you want to buy, have a talk with yourself first, check your financial readiness, and get with an expert and learn everything you need to know, in order to get what you want in this market.

-kw.com-

Monday, December 6, 2010

Existing Home Sales Show Another Strong Gain - Nationally

Existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, jumped 10.0 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.
Lawrence Yun, NAR chief economist, said the housing market is in the early stages of recovery. "A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions," he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.35 percent in September from 4.43 percent in August; the rate was 5.06 percent in September 2009.
The national median existing-home price for all housing types was $171,700 in September, which is 2.4 percent below a year ago. Distressed homes accounted for 35 percent of sales in September compared with 34 percent in August; they were 29 percent in September 2009.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said opportunities abound in the current market. "A decade ago, mortgage rates were almost double what they are today, and they're about one-and-a-half percentage points lower than the peak of the housing boom in 2005," she said. "In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record."
To illustrate the jump in housing affordability, the median monthly mortgage payment for a recently purchased home is several hundred dollars less than it was five years ago. "In fact, the median monthly mortgage payment in many areas is less than people are paying for rent," Golder said.
Housing affordability conditions today are 60 percentage points higher than during the housing boom, so it has become a very strong buyers' market, especially for families with long-term plans. "The savings today's buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home -- this is truly an example of how homeownership builds wealth over the long term," Golder added.
Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12.0-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.
"Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path," Yun said. "Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months."
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in September, almost unchanged from 31 percent in August. Investors were at an 18 percent market share in September, down from 21 percent in August; the balance of purchases were by repeat buyers. All-cash sales were at 29 percent in September compared with 28 percent in August.
Single-family home sales increased 10.0 percent to a seasonally adjusted annual rate of 3.97 million in September from a pace of 3.61 million in August, but are 19.5 percent below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in September, down 1.9 percent from a year ago.
Existing condominium and co-op sales rose 9.8 percent to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago. The median existing condo price5 was $165,400 in September, down 6.2 percent from September 2009.
Regionally, existing-home sales in the Northeast increased 10.1 percent to an annual pace of 760,000 in September but are 20.8 percent below September 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.
Existing-home sales in the Midwest jumped 14.5 percent in September to a level of 950,000 but are 26.4 percent below a year ago. The median price in the Midwest was $139,700, down 5.2 percent from September 2009.
In the South, existing-home sales rose 10.6 percent to an annual pace of 1.77 million in September but are 14.9 percent lower than September 2009. The median price in the South was $149,500, down 2.6 percent from a year ago.
Existing-home sales in the West increased 5.0 percent to an annual level of 1.05 million in September but are 16.7 percent below a year ago. The median price in the West was $213,600, which is 4.9 percent lower than September 2009.

- Realty Times -

What is the real cost of financing?

Annual Percentage Rate

What is the Real Cost of Financing?

Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.
The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of a yearly rate. APR factors in certain closing costs and fees associated with the loan, and spreads this total over the life of the loan along with the actual note rate. The objective is to give the consumer a clearer picture of what their actual costs are, and this inhibits lenders from hiding fees or upfront costs behind low interest rates in their advertising.
Fees that are generally included in the APR calculation are points, pre-paid interest, loan processing fees, underwriting fees, document preparation fees, and private mortgage insurance. On occasion, lenders will include a loan application fee and/or credit life insurance. Fees that are normally not included in the APR calculation are fees from Title, Escrow, attorney, notary, document preparation, home inspection, recording, transfer taxes, credit report and appraisal.
Remember, all lenders do not perform the calculation the same way. Moreover, APR does not consider the possibility of making pre-payments, moving or refinancing. Unless the interest rate is tied to a fixed instrument, APR is even more confusing. Calculating APRs on adjustable rate and balloon mortgages is more complex because we really have no way of knowing what future rates will be.
If all lenders calculated APR the same way, we could make easy comparisons when deciding on what loan program to go with. Since they don't, the consumer should know that APR is simply a starting point for comparison. They should rely on the skills of a well-versed loan professional to assist them in obtaining the loan that meets their specific needs. The more important things to consider are how long the loan is needed. What are the long-term goals of the borrower? If the home buyer only expects to stay in the home for five years, there's not a lot of sense in looking exclusively at 30-Year Fixed rates because the APR seems more reasonable. If a young couple is buying a home, knowing they will refinance in eight years to pay for their son's college education, then once again, APR is not a realistic factor to take into consideration.
The Loan Executive should be prepared to answer questions about APR once the lender provides the Truth-in-Lending Disclosure Statement (Reg Z), such as why the “amount financed” listed in Box C is not the same as the actual loan amount, and why the APR is higher than the interest rate on the loan in most cases. The consumer will get a clear definition about the fees associated with their loan in the good-faith estimate, but the Truth-in-Lending Disclosure is often an area that is confusing to the borrower.
Stay tuned for more Business Boosters coming your way!

How Foreclosure and Bankruptcy Affects your Credit

When Todd Huettner's clients came to him hoping to qualify for a mortgage, their credit score was in the mid-700s, the sweet spot for lenders, who are looking for borrowers who are likely to pay their bills on time.

Huettner, principal at Huettner Capital in Denver, is an independent mortgage broker who has helped people navigate the unpredictable straits associated with obtaining a mortgage. But these clients had a particularly bad patch to deal with: They had declared bankruptcy two and a half years before.

"A foreclosure, like a bankruptcy, does hurt your score, but it's hard to tell exactly how much by itself, since there are usually other late payments, collections or judgments prior to a foreclosure," he said. "After all, a foreclosure only takes place after not making payments."

Because a credit score is really about how well you handle credit, said Huettner, "late payments are a huge warning sign, and really hurt your credit score. I've seen one late payment lower a score by 100 points."

And as the number of foreclosures has continued to grow, and even those with very good credit scores have had difficulty paying bills these past few years, the credit agencies are changing how they evaluate the risk of consumers defaulting on their loan. The Fair Isaac Corporation and VantageScore, the two companies that determine credit score formulas, have examined consumer behaviors to come up with a new scoring formula. The new scores might take a harsher look at average balances on credit cards and loans, causing an otherwise good score - anything north of 740 - to drop 40 points.

Whatever has caused your credit score to drop - bankruptcy, foreclosure, or late payments - it will take work to get it back up to the desirable mid-700 range (850 is the best possible score; 350 is the lowest.) "When you think about it, you didn't go into foreclosure overnight, said Ken Lin, CEO of Credit Karma, a Web site that provides free access to credit scores and credit advice. "Each one of those things that happens on the way to foreclosure - late payments, missed payments, higher credit balances - will affect your score; it can drop by 200 to 250 points. So it will take time to repair that score."

If you are in foreclosure on your home, you probably won't be looking for a mortgage too soon. But it's not too soon to start trying to repair that credit score. Experts offer these tips to get your credit score to a healthy number again.

Continue to pay your bills. Just because you foreclosed on a property doesn't mean you should pull back from other financial responsibilities. Your credit score is a reflection of how good you are at paying bills. So pay the credit card, the car loan, the gas bill, and any other accounts. Don't skip any payments. Continuing to pay is a way to stop the decline; not paying is a sure way for your score to continue to drop.

Don't close all your accounts. Yes, you just went through a foreclosure, and yes, you would probably like to cut up all your credit cards in order to get a fresh start. But, you need to have at least one credit card that you pay regularly to demonstrate your credit-worthiness. "You have to make on-time payments on accounts for your score to improve," said Huettner. "You can't jut close or not use your accounts and expect your credit to improve." Huettner said to plan for 24 months of timely payments to make a big difference in your credit score.
Your Credit Score Can Cost or Save You Thousands. Know Where You Stand.
Get Your 2010 Credit Score

Check your credit score regularly. You can request your credit history from each of the three bureaus - Experian, TransUnion and Equifax - free one time per year. And Credit Karma will allow you to request a look every day. While once a day is probably more than you need, especially as you work to repair your credit rating, you should check it every couple of months to be sure that no inaccuracies crop up. "You can dispute anything that you believe is wrong," said Tena Friery, research director at Privacy Rights Clearinghouse, a non-profit consumer education organization. "Take the time to check it; any inaccuracy can affect your score."

Don't max out on available credit. "You should not have a huge debt load," said Lin. "You don't want credit card debt to exceed more than 30 percent of the total limit." This is the number the new credit models will be evaluating. Keeping your loan to debt ratio low will be key in maintaining a high score.

"You can realistically get your score back to the 700s in two to three years," said Lin. "But lenders will be looking at the rest of your credit history at that point, and a foreclosure will not look good to most mortgage lenders. But it is the first step.

And can bring you back to homeownership. Huettner's clients, who were able to keep up with paying bills after a bankruptcy, managed to repair their credit score to the point where, back in the mid-700s and a hefty down payment, they succeeded in obtaining an FHA loan.

Said Huettner, "The more time you have from late payments, the better your score will get."

Saturday, December 4, 2010

Schooled in Home Buying

When looking to buy a house, most families put a stellar school system at the top of their list of non-negotiables. But be carefule, says Yahoo! personal finance expert Laura Rowley.  People pay more to live in high-ranked school districts, although the better value may be in a less-expensive house in a lesser-ranked district.  For one, ranking alone does not determine school quality. "When you compare schools, look at what different courses and enrichment are," she advises, "not just test scores." And she notes recent research showing that the difference between the best and the next-best schools is negligible.  Finally, remember that situations change.  "even if you do buy in the best district," she says, "your kids may not end up there."  She cites recent cases in which so many parents flocked to particular districts, "there's now overcrowding - and rezoning." Ultimately, she says, factoring in stress and time burdens of a mortgage that overstretches you, "you're better off buying a house you can afford." - Better Homes and Gardens Spet. 2010

Friday, December 3, 2010

Homebuyer Tax Relief Signed...Keep your fingers crossed!

MAR-supported legislation to allow foreclosed properties to retain their principal residence exemption for a period of up to 3 years has passed both the House and Senate, and is expected to be signed by the Governor in the coming days.

Senate Bill 77 provides for much needed Principal Residence status and tax relief to purchasers of bank-owned properties after the May 1st filing deadline. This legislation has become particularly important since foreclosures, which are non-principal residences, have flooded Michigan's real estate market in recent years. The current situation prices buyers out of homes by forcing them to qualify for a mortgage at the higher tax rate. Those buyers looking to purchase foreclosed properties are consequently stuck with a significant tax burden for the remainder of the year despite making that new purchase their principal residence. This bill would alleviate that burden by allowing a buyer to immediately make a foreclosed property their principal residence.

The MAR Public Policy staff met with legislators on this bill until the very last hours of the 2010 session to express the importance of making this tax-friendly legislation a priority. We are pleased that legislators on both sides of the aisle supported the passage of this bill, which gives homebuyers significant tax relief when purchasing a foreclosed property.

Thursday, December 2, 2010

Selling Points!

Realtors say today's top-value home improvement project is a front-door upgrade.  Return on investment: up to 130 percent. Siding, roofing, landscaping, and other curb-appeal improvements also rank high in getting a home sold faster.  Inside, carpeting and painting should be fresh. "Take away those pain points for the buyer," says Julie Reynolds, senior director at Realtor.com, "and remember that Web appeal is the new curb appeal."  Nine out of 10 buyers search online and spend 12 weeks looking.  They look at 12-16 homes in person. - Better Homes and Garden September 2010

Short Sale Facts

Wednesday, December 1, 2010

Short Sale What Is It? Call us, We will explain it to you 586-421-1598.

It is happening all to often in today’s market. Your home is not what is worth last year, or even a few months ago. Professionals are now calling it an “upside-down house” in which you owe more on the mortgage than the house is now worth. If you cannot ride out ride out the financial storm, then you may want to consider a short sale to avoid a foreclosure situation.



A short sale is when the house or property is sold for less than the balance due on the mortgage. The lender takes the loss, but not a such as a foreclosure process. A short sale is not always the best option for everyone. You need expert real estate short sale expert advice to decide on the pros and cons of a real estate short sale.



If you are thinking of doing a short sale on your home, here are some pros and cons to consider:

Pros:
•No Foreclosure – Foreclosures can be a very hard and stressful process for a family. It can take anywhere from six to twelve months for a foreclosure to complete.

•Being proactive – Facing foreclosure head on will help give you some control over the process. By choosing a short sale, finding a buyer and negotiating terms with the bank, the huge effect on your credit score by a foreclosure can be dodged.

•Start Newer, Faster – Minimizing damage to your credit score can help you and your family get back on your feet faster. You’ll be eligible to purchase another house faster than if you entered foreclosure.

•May not owe anything after the Short Sale – You can try asking the bank to cancel your debt altogether. It does happen, but not all the time.

•You no longer need to pay large monthly mortgage payments

•The lender may forgive the difference in debt between what you owe and the final price.

•You are spared the lengthy and traumatic foreclosure proceedings.

•Your credit score will usually recover more quickly than a foreclosure

•You can re-qualify for a new mortgage loan more quickly than a foreclosure

•You are more likely to escape bankruptcy

•If the short sale occurs between January 1, 2007 and December 31, 2009 you won’t be taxed on the debt forgiven.

•If you are not able to pay the mortgage premium, or work with the lender on getting a lower monthly payment, a short sale is the best case scenario…even though it means losing your home and investment.

Cons:
•There is still damage to your credit – When a short sale is done on your home, it is still documented on your credit but won’t have the same impact as a foreclosure for most creditors. Although lenders will view a short sale somewhat similar to a foreclosure. The chances of getting a home loan will be slim during the ‘wait period’.

•Tax Consequences – there may be tax consequences if the bank forgives the debt and will issue a 1099 for the amount of debt forgiven. This form is sent to the IRS to allow the bank to write off the loss. The IRS treats the forgiven debt as a taxable income which means you will need to pay taxes on the amount owed. Although due to the Mortgage Forgiveness Debt Relief Act of 2007, no taxes are owed on the forgiven debt.

•Bank Could Demand Payment for their Loss – The bank doesn’t have to forgive the debt. They are able to ask you pay them back for the difference on the sale and what is owed, but you’ll need to agree to this. There are 2 options. You could negotiate the provision out of the short sale or if they insist on the repayment, you could let it go into foreclosure. It’s best to consult professional help regarding your specific situation.

•The lender does not have to say yes to a short sale

•You must show proof that you cannot make your mortgage payments and the proof must be reasonable. The lender will not approve a short sale if you gambled your savings. A few hardships accepted are such things like illness, divorce, or a job loss.

•The lender will make sure you do not have any recourse, savings or other assets to pay off the rest of the debt.

•You don’t have to be in default of your loan to be approved for a short sale. If you are in default, you may have less time to jump through necessary hoops (like proving you cannot make payments)

•A short sale is not short. It is a long process and it depends on how quickly you put together the right papers, how it is provided and how quickly the lender reacts. There are many people in this situation, creating a backlog in the process.

•Lenders are notorious for not communicating quickly to approve short sales.

•If your home has liens, 2nd mortgages, or a home equity line of credit, each lender has be consulted for approval, which can take up a considerable amount of time.

•Once the lender approves the short sale, the successful transaction depends on a good offer from a good buyer.

•Because the lender is losing money, the real estate agents involved will usually get a smaller commission.

•The lender may require you to sign a promissory note for the debt forgiveness in order to approve the short sale.

•The lender may pursue a repayment of the debt forgiven after the short sale is completed.

•Your credit score is going to take a hard hit as it would if it went through a foreclosure. Consult tax and legal advice.

•You could be taxed on the debt forgiveness if the property sells for more than 2 million or is not your primary residence. Consult a tax professional.

There are no guarantees in a short sale whether the bank will approve the bank or even forgive your debt, but Short Sales offer a better alternative to minimize the downside of facing a foreclosure.

A short sale is a difficult process for both the seller and buyers. There are so many details involved (more than what the average homeowner is aware of). Make sure to consult professionals who have a history of success with short sales.
Just remember that you do have options, I will explain them to you.
 
Call me!
 
Kim Hammonds
Keller Williams Realty - Macomb St. Clair
Team Advantage 1
31525 23 Mile
Chesterfield, Mi 48047
Office: 586-421-1598
kimsellsit@yahoo.com
http://www.kimsellsit.com/