What is a Realtor Worth?

In today’s market what you need to be the most concerned about is what level of marketing you can expect from a Realtor. Secondly the Realtor must have the ability to negotiate not just with the buyers on your property to get the highest price for you, but also there is a high incidence of properties not appraising for the sales price on the contracts. When that happens I then must negotiate with the appraiser to prove to them that the value they came up with is incorrect and that they must change the appraisal. I have made and saved my home sellers thousands of dollars due to my experience and knowledge of the market. Please don’t get caught up on a difference of 1% broker fee when actually a fulltime agent such as me can save you thousands of dollars particularly in today’s market. If you want a fulltime professionals real estate agent in York, PA call me Jerry Pilgrim of the Pilgrim Team of Professional Realty Associates.

Second Mortgage Modification

Although the media is reporting that the recession is getting better, the economy is still in recovery. There are still thousands of homeowners who are struggling to make mortgage and ends meet. Many homeowners have had not only modify their first mortgage but also take a second mortgage in order to make ends meet, but now making that payment on top of all the other growing expenses can leave many struggling. There may be some help for those homeowners who are in this situation.

The 2nd Lien Modification Program (2MP) may be just what you need. A few large institutions have already signed on to the 2MP program: Bank of America (and Countrywide), CitiMortgage, Chase (with EMC and WaMu), and Wells Fargo (and Wachovia). More are expected to join this growing list.

Below are some of the eligibility requirements:

• You have a second mortgage on your home and:
• Your first mortgage has been modified under HAMP
• Your second mortgage provider is one of the participating banks
• Your second lien was originated on January 1, 2009, or earlier
• Your second lien has an unpaid principal balance of $5,000 or more and a monthly payment of $100 or more
• The second lien servicer has a 2MP modification agreement or trial period plan in place for you by December 31, 2012

Interest rates are reduced to 1-2%, depending on the type of second lien you have. The term of the loan can be extended to 40 years. Even better, a 2MP servicer can even forgive all or part of the second lien, which means your debt is reduced or removed.

There are some restrictions. You can’t participate if your mortgage is subordinate to a second lien, or if it is a home equity loan in first lien position. 2MP is also not for you if you don’t have to make payments on your second lien or interest is charged until the first is paid in full. Liens insured, guaranteed or held by a Federal agency like FHA, HUD, VA, or Rural Development aren’t covered under 2MP.

If you qualify, however, it can be a financial lifesaver. To learn more, contact your mortgage provider or a housing counselor through HUD.

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What Makes A Binding Contract?

Eventhough the first part of the The Home Buyer Tax Credit has expired (it was April 30th) part two requires that the homebuyer closes on the home on or before June 30, 2010.

One of the questions that has come up as part of the tax credit push is what exactly is a ‘binding contract’ in the eyes of the IRS. It is a common real estate term that many don't understand exactly what it is.

As with anything that has to do with tax benefits or legal obligations, it is a good idea to seek the advice of a tax accountant or attorney. They can help translate murky guidelines and offer the best course of action when buying or selling a home.

When it comes to actually writing an offer, allow your realtor to craft the contract or use a standard state contract. Your offer should be thorough and concise, it is vital to not leave any terms blank or undefined. Any ambiguities in an offer can lead to misinterpretation down the line that could render the contact ‘non-binding’. Not only can this have an impact on your Home Buyer Tax Credit, other tax advantages or even the ability to close on the deal.

Be sure to do your research and take advantage of help from real estate professionals and other resources such as the National Association of Home Builders (NAHB) and the National Association of Realtors.

All contracts have some contingencies – and some are more important than others. Just be sure to consult with an expert to make sure your offer is clean, clear and enforceable.



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Title Insurance Explained

During the process of purchasing a home, you will most likely deal with title insurance. Many homebuyers are confused at to exactly is title insurance is and whether or not they really need it?

When you buy a home you are given a title. The title is the owner's right to possess and use the property. It is important to know that it may not the home seller who owns the title. A bank with a mortgage on the property might own an interest in the property, as does someone who has done work on the house and filed a lien against it or even a homeowners association if the dues have not been paid. The government may also have liens against the property for unpaid taxes.

Homeowners will need to ensure that there are no problems with the home's title as well as confirm that the seller really owns the property. Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. A title search and title insurance will protect the homeowner from these problems.

A title search will reveal if someone other than the owner of the property owns the title. This search can be done by examining public records to look up the history of property ownership. While you can easily do your own title search, if you are obtaining a loan to purchase the property, the lender will require that a qualified third party do the title search. The title search shows not only limitations on the use of the property and rights others may have in the property, but also liens or monetary obligations that are outstanding against the property.

Title insurance is different than homeowners insurance where you are covered in case of a future event. For example, if you get car insurance you are insured in case you have an accident, you buy health insurance in case you get sick. Title insurance is different as it covers events relating to the title that have already happened. It does not cover anything that happens to the title after the date of issuance. For example if you have liens filed against the property for taxes that you have not paid, your title insurance policy is not going to help you. But, if the lien is for taxes not paid by someone who owned the house before you, then you may have coverage under your title policy.

A title company will do a title search on the property before issuing the policy to see if there are any problems with the title. This search is done in an effort to minimize the risks of offering insurance. Problems such as deeds, wills, outstanding mortgages, judgements, and tax liens can be located from the search and can typically be cleared up before the closing on the property. When these problems are not cleared they will often be listed as exceptions to the policy's coverage. You would then need to decide whether the property is still something you want to purchase given the known problems with the title.

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Improving Indoor Air Quality

Breathing fresh clean air is vital for health and avoiding polluntants makes sense. However, it has been shown in some studies of air quality in the home, that the air we breathe in our homes is often more polluted than the air breather outside. This is of course an alarming realization especially if you have children or family members who have asthma or a fragile immune system. The good news is that are a number of things that can be done to improve air quality in our homes.

•Ventilate your home regularly
•Vacuum weekly
•Use a good quality air filter on your furnace and replace it regularly
•Maintain ventilation systems (If your home has one) and dehumidifiers
•Run exhaust fans in bathrooms and kitchens
•If you're considering an air purifier, avoid devices that generate ozone, as these can make lung problems and asthma worse.

In addition to these tips, you should also pay close to attention to the indoor chemicals that you may be using. The two more commonly identified chemicals in our homes include formaldehyde which is present in home renovation products and solvents from fresh paint and phthalates which are used in soft plastics and synthetic fragrances such as air fresheners and dryer sheets. Even common cleaning items used such as bleach and ammonia result in poor air quality. There are many alternatives on the market today that offer bio-degradable and safe to use cleaning products for the home