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.

/kh

FANNIE MAE MAKES NEW REGULATIONS ON STRATEGIC DEFAULTS

FANNIE MAE HAS COME UP WITH NEW STRATEGY ON HANDLING STRATEGIC DEFAULTS

Homeowners across the country and here in York, PA are hearing about the so called advantages of walking away form their financial obligation (mortgage) on their home. Fannie mae has decided that they will not take this lightly when a homeowner has the ability to pay their mortgage, yet deciides not to. Fannie Mae announced they will not allow a homeowner to be eligible for a Fannie Mae backed loan for at least 7 years. They also have said that if a state that allows a deficiency judgement (Pennsylvania does) they will do just that. Fannie Mae is letting homeowners know they will not take this lightly and pursue a claim against these homwowners.

Think twice about how this can adversely affect their ability to get new credit and also could cause an potential or even a existing employer to hire or retain that person due to the foreclosure and judgement on the credit report.

Homeowner Liability

Once you have purchased a home and become a homeowner, you will have certain responsibilities. Obtaining the proper insurance for your home is an important first step. Most homeowners have liability insurance, but they don't actually understand their responsibility as a homeowner. When you own a home, you can be held responsible for any injury that happens on your property. Unfortunately, that also includes things that you have no control over.

There are many instances when a homeowner can be held liable, such as if someone slips on your doorstep and is injured, if a tree on your property falls and damages your neighbors property or even if your pet bites a visitor to your home.

What most homeowners will find surprising is that that even people who trespasss on your property and then injury themselves actually have legal recourse. The law states that once the owner is aware that there is a trespasser present on the property or can reasonably anticipate that a trespasser may be present, then the owner actually has a duty to exercise ordinary care in order to avoid injuring the trespasser.

It is important for homeowners to be aware of where their liability responsibility is and to make sure they have adequate insurance to cover any damages. For many people, the coverage included with their regular homeowners policy is enough. But in some situations, you may want more. Some common reasons to get more coverage include:

• You own a swimming pool
• You own a dog, especially if you own an aggressive breed of dogs, this will raise your homeowners premiums.
• You frequently host social events. If you have parties often, the likelihood of someone getting hurt goes way up-especially if you’re serving alcohol at your parties.

As in all home owner insurance matters, take care to read your policy carefully. If you have questions about your premises liability coverage, ask your insurance agent. You might need separate riders to provide all the liability coverage necessary for your situation.

/kh

Strategic Foreclosure? Is it really an option?

What is a "strategic foreclosure"? There has been a lot of talk lately on the news networks such as ABC, NBC, CBS, FOX News, MSNBC and others about these types of forclosures. I have heard the talk that if it is ggod enough for corporate america to walk away from the financial obigations it should be good enough for the private sector to do the same.

Think of it like this, and ask yourself these questions. Does the corporation have a family to feed? Does the corporation need a place to live? Does it need to have credit in the future to buy a house or even rent an apartment? Does it need a job? If you need any or all of these things STAY AWAY from the idea of a strategic foreclosure. They entice you to milk the system for all it can give you at the time, but remember payback can come back to hit you in a big way.

The only good foreclosue is NO foreclosure. You need an expert with the experience like a CDPE (Certified Distressed Property Expert) who can work closely with the Banks to negotiate a settlement that will not adversely affect you for a very long time such as a foreclosure can. Please go to my web site www.pilgrimteam.com and seach for my CDPE site for additional information that can help you or someone you may know who is struggling with the possibility of foreclosure.

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.



/kh

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.

/kh

Is A Fixed Rate Mortgage Right For You?

If you are planning on purchasing a new home and will be obtaining mortgage financing, you will have many different mortgage loan programs to choose from. It can be confusing to decide which will be best for your situation with all the different choices on the market today. However, the vast majority of them are fixed rate mortgages with a 15 year or 30 year term. These traditional mortgages are amortizing, which means that you pay off the entire loan amount by the end of the term of the loan. While these are still the most common type of loan, there are advantages and drawbacks to these mortgages. Depending on your financial situation, and the prospects of changes in your financial future, a fixed rate mortgage may or may not be the best product for you.

Below are some of the pro's and con's of fixed rate mortgages:

PROS

Interest rate on your mortgage cannot be increased for the life of your loan

Monthly payment will remain the same for the life of the loan

Loan will be completely paid off by the end of the term

Fixed Rate mortgages are very common and standard and finding a lender who offers this loan will be easy.

CONS

Fixed monthly payment amount may be difficult to make at the start of the loan

Large percentage of payment goes to interest payment in first years of the loan

Usually has a higher interest rate than a variable rate loan initiated at the same time

Interest rate cannot be reduced as in some variable rate programs

Maybe harder to qualify for, as higher income may be required

Depending on your financial situation, a fixed rate mortgage may be the best solution for you. If you can afford the monthly payment required to obtain the loan, then the fact that your interest rate and monthly payments will stay the same for the life of the loan while give you peace of mind and make monthly budgeting easier.

/kh

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

Tips For Making A Small Room Look Larger

The current real estate market can make selling your home can be challenging. It may make it more difficult if you have some rooms that may be on the small side.

Small rooms can feel confining and uncomfortable, but you don't need to do a total remodel to make your rooms feel larger. By utilizing certain design concepts that fool the eye and the rooms seem much bigger and spacious. Below are some simple tips you can take to help make these rooms appear more spacious and inviting to prospective buyers.


1.Painting the room with light colors such as pastels, neutrals and white are a better alternative to “bright” or dark colors.

2. Avoid all clutter. Even on the walls it is best to use one larger painting rather than several small decorative paintings or pictures.

3. Any room will look larger if it's well-lit, either by natural light or artificial lighting. Get rid of heavy draperies and open up the windows to let the light of the outdoors into the space.

4. Mirrors are a must as they add dimension to the room by reflecting images, light and colors. Mirrors provide a “see through” feel to the room.

5. Be mindful of the furniture you select for the room. Large and bulky pieces of furniture should be removed. Using just a few smaller pieces in the middle of the room will improve the appearnce of space.

6. If possible choose glass tables, they open up the room and help to establish a larger room feel.
Use vertical space for storage. Add a hutch or floor-to-ceiling bookcases as a storage solution to reduce the amount of floor space taken.

/kh

CDPE Foreclosure and Short Sale Education - HAFA - Introduction

HAFA Explaineda

Making A Successful Move With Pets

Making the move to a new home and leaving your familiar surroundings can be a stressful on both you and your pet. It can be even more difficult for your beloved pets when moving because they have no idea why all the commotion! It is important to have a plan and take your pet's needs into consideration to have a smooth transition for everyone. Below are some tips to help you get started!

• Take your time and plan ahead. Stretch out your packing over several weeks so you won't have to worry about any last minute crunch times. This will help to avoid panic in the last days, leaving moving day as relaxed as possible for you and your pets.
• Schedule an appointment with your veterinarian a few weeks before your move for a check up. Be sure to attain your pet's veterinary records so that they can be forwarded to your new veterinarian. Certain localities may have stringent requirements or restrictions regarding pet ownership. You may need permits or registrations.
• Don't change your pets' routines. Animals thrive on routines, if they know when to expect things such as feedings and walks, they will do much better. Changing these routines can cause animals to feel stressed and might cause illness or behavioral. Try to keep everything on the same level as normal.
• When you arrive at your new home, designate a unused room with a door that is quiet and just for them. Provide them with fresh food and water and their bed or favorite toy, something that is familiar to them. This will keep them safe and calm while the move is going on.
• If your pets are not micro-chipped be sure to get a new pet ID tag with your new address and contact phone numbers and if they are micro-chipped be sure to update the info with your microchip company.
  
  If you are moving a long distance and need to enlist the help of professional pet movers you have many choices. There are companies that specialize in air travel for moving pets and others that offer various methods of pet transportation that can transport your pets to the next state or around the world. As always do your research to find one that fits your needs and comes highly recommended.

Staging Tips To Help Sell Your Home Fast

In this difficult economy, selling your home can be a challenge. Sellers are looking for help to sell their home faster and for top dollar. Staging a home for sale is one of the best marketing strategies in residential real estate.

If you are not familair with staging, it is the process of showcasing your home in its absolute best light. By doing this, you draw buyers’ attention to your home’s most appealing features and helps to not draw attention to the features that are not as appealing.

By staging your home you can emphasize on your home’s positives. It’s part art, part science--and all marketing. It can involve everything from fresh paint to clever carpentry, new lighting to new window treatments. And don’t forget the borrowed (or rented) furniture to define and enhance each room!

To see staging in action, watch an episode or two of HGTV’s Designed To Sell for some amazing tips. Also see Top 10 Home-Staging Dos and Top 10 Home-Staging Don’ts by Designed To Sell’s Donna and Shannon Freeman.

Below are some tips that you can follow to help make your home shine:

* Clear it out. You have stuff--lots of stuff. And your house is overloaded with all that stuff. Go through each room and get rid of the clutter everywhere you see it. Your rooms will look bigger, more restful, and more inviting. And all you did was pick up!

* Clean it up. Make sure everything shines inside and out, from windows, floors and countertops inside to the deck, garage and yard outside. Pay particular attention to the kitchen and bath. A little well-applied elbow grease will go a long way in selling your home. And it’s free!

Do these two simple things, and you’re already ahead in the staging game.

But should you keep going and stage other aspects of your own home? That depends on whether you have the eye, the skill--and the objectivity. Can you put yourself in the buyer’s shoes and see your home as the buyer will see it--positive points and negative points? Are you prepared to tackle those negatives? Do you have the “designer’s eye” for color and other design elements? Do you have the technical skills to complete improvements?

Staging can definitely help sell your house for more if it’s done right, whether you do it on your own or you hire a professional stager.

Tips On Cutting Your Property Taxes

Every homeowner is required to pay property taxes, and on top of the other expenses that come along with owing a home, it can be a strain on the budget in these tough times. However, there are some ways you can cut your property tax bill, one top tip is having a propery reassessment.

Homeowner's property taxes are typically calculated based on an official assessment of the property. Because the value of many home's have dropped in the last few years, homeowners can challenge what the value of the home is currently valued at and thus reduce the tax bill by hundreds of dollars. Even before you seek an assessment, it is a good idea to check your records to make sure there are no mistakes. Simple typos and incorrect information can cause homeowners to be.

With the current economic crisis, many counties are raising property taxes in an attempt to balance their fiscal budgets and reduce their deficits. According to a survey by the National Association of Counties, a group that represents county governments.property taxes, about 18% of counties whose fiscal year begins between January and June increased property taxes to address revenue shortfalls.

Whether you are planning to sell your home in the near future or are planning to stay for a few more years, it is worth trying to get a reassessment. Keep in mind that if you can reduce your taxes, it will be a great selling tool.

When Looking At Homes Watch For These Red Flags

Once you begin the househunting process in your search for a new home, it can be easy to get caught up in the excitement and overlook potential problems. It is of course vital to always have a professional home inspection before signing any contracts. However, it is important to be on the look out for some potential issues before you start the process of purchasing the home. Below are some red flags to look for when you begin searching for your home.

•Be on the lookout for strange odors. Pet smells, musty odors and even cigarette smells can be red flags as they can be hard to get rid of and may signal a deeper problem. Keep in mind if the home smells like heavy cleaning products the seller might be trying to hide a problem.
•Watch out for wiring issues. While an electrician is the only one to accurately diagnose wiring problems there are some things you can be on the look out for. Make sure all the switches and outlets in the house function properly. Any lights that flicker or don't work as well as hot outlets are all symptoms of wiring problems.
•Problems With Windows. You can tell a foggy window problem right away just by looking at them but also be sure to check out all the windows to make sure they are fully functional. Some older windows maybe warped or painted shut and if you do see foggy windows that is a sign that the seal is broken.
•Look up for ceiling stains. Some buyers don' think about looking up at the ceiling but if you see stains then its obvious..something’s leaking. It might be a simple repair or it might be quite costly. Most roof leaks result from neglected flashing that seals “valleys” in the roof or around a chimney or vents, roof leaks mean mean it’s time to replace shingles. If the leak is under a bathroom it might be shower or even the toilet that is causing problems.
•Look closely for insects and rodents. Keep a close eye out for signs of rodents and bugs. Be on the lookout for hidden mouse traps, rodent droppings, roach motels or other signs that there may be a problem. If you do locate a home that you are ready to purchase, absolutely get a termite inspection as they can only be detected by a professional inspection.

Of course these are just some things to look for and while they may not present a serious problem and may be a mior fix it is important to be aware of potential issues and headaches downt the road.

Preventing Home Theft

• Taking steps to prevent theft can reduce your insurance premiums and save you from the heartbreak of losing items that are worth more to you than money. According to the Federal Bureau of Investigation estimates, in 2007 alone, there were nearly 2.2 million burglaries in the United States. There are steps that homeowners can take to make their properties less vulnerable to intruders and precautions to prevent becoming a victim of theft. Consider the following safety tips to protect your home and family
  
  
• Make it difficult for an intruder to hide; trim bushes and trees to allow maximum exposure of windows and doorways.
• Install a home security system. According to the FBI, homes equipped with centrally monitored alarm systems are 15 times less likely to be targets of break-ins.
• Install motion-detection lights on all sides of the house. This will help to make your home less inviting to burglars.
• Take part in the neighborhood watch and get to know your neighbors. Neighbors can play a key role in preventing home thefts. Homeowners who interact with their neighbors are less likely to be victimized by other members of their community. At the same time, closely knit neighbors are more likely to call the police if they see someone suspicious poking around your property.
• When you aren't home, use a timer set to turn interior lights on and off at varying intervals as though your home was still occupied.
• Use solid core or metal clad entrance doors with solid door frames firmly attached to your home. Many intruders enter residences by physically destroying lightweight hollow core doors and flimsy door frames.

Taking these preventive measures can reduce the chances of your home being broken into and your possessions stolen. It is a good idea to review your insurance policy to make sure it provides all the protection you need. It is recommended that you videotape your valuables and note any serial numbers in case of theft.