NAR Survey Shows First-Time Home Buyers Set Record in Past Year
San Diego, November 13, 2009
First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2009 REALTORS® Conference & Expo.
The 2009 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers. Among national surveys, NAR’s Profile of Home Buyers and Sellers is unprecedented in size and scope.
Paul Bishop, NAR vice president of research, said several factors have been at play. “Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” he said. “These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services.”
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year’s study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession,” Bishop said.
The profile shows the median age of first-time buyers was 30 and the median income was $61,600. The typical first-time buyer purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.
Fifty-five percent of entry level buyers reported they financed their purchase with an FHA loan, while another 8 percent used the VA loan program.
First-time buyers who made a downpayment used a variety of sources: 61 percent used savings and 22 percent received a gift from a friend or relative, typically from their parents. Six percent received a loan from a relative or friend, 6 percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-six percent chose a fixed-rate mortgage.
First-time buyers often make financial sacrifices to purchase a home: 39 percent cut spending on luxury items, 38 percent cut back on entertainment and 30 percent cut spending on clothes.
Only 12 percent said financing their first home was more difficult than expected, but 13 percent of successful buyers said they had experienced a purchase agreement that was canceled, terminated or fell through; and 8 percent had been rejected by a lender. “This raises the question of how many potential buyers were unsuccessful because of problems with appraisals or loan qualifications,” Bishop said. “The market would be even stronger without these problems.”
NAR 2009 President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said NAR pushed hard to extend and expand the home buyer tax credit though the middle of 2010. “Some people were taking a housing recovery for granted, but we must acknowledge the abnormal situation from toxic loans that will keep foreclosures coming into the market over the coming year,” he said. “To help stem foreclosures we must first stabilize home prices, and the expansion of tax incentives should absorb enough inventory to restore balance. As the leading advocate for homeownership, NAR commends Congress for extending and expanding the tax credit because placing financially qualified buyers into affordable homes is the soundest way to heal our economy as fast as possible.”
Buyers searched a median of 12 weeks and viewed 12 homes. Among buyers who used an agent, 63 percent selected a buyer’s representative. Eighty-seven percent consider their home a good investment, and more than half see it as a better investment than stocks. Twelve percent of buyers own two homes, while another three percent own three or more homes.
The typical repeat buyer was 48 years old, earned $88,100, purchased a home costing $224,500 and plans to stay in that home for 12 years.
The median down payment of all home buyers was 8 percent, and the number purchasing with no money down fell from 23 percent in 2008 to 15 percent in the current survey; 8 percent of buyers paid all cash for their home.
The median age of home sellers was 46 and their income was $91,100. Typical sellers had been in their home for seven years, up from six years in the 2008 survey, moved a median distance of 19 miles, and their home was on the market for 10 weeks. Nearly half traded up in size, 30 percent bought a comparable home and 22 percent traded down.
Eighty-five percent of sellers used a real estate professional, and 64 percent of sellers chose their agent based on a referral or had used the same agent in the past. Eighty-one percent of sellers are likely to use the same agent again or recommend to others.
Forty-two percent of sellers offered incentives to attract buyers, such as home warranties or assistance with closing costs. The typical home sold for 95 percent of the listing price, with a median increase over the seller’s original purchase price of $36,000. “Even with price declines in recent years, the typical home seller saw their equity increase 27 percent,” McMillan said.
Of sellers working with real estate agents, the study found that 80 percent used full-service brokerage, in which agents provide a range of services that include managing most of the process of selling a home from listing to closing. Nine percent of sellers chose limited services, which may include discount brokerage, and 11 percent used minimal service, such as simply listing a property on a multiple listing service.
All of these types of services are provided by Realtors as well as non-member agents and brokers, with comparable findings for each year since questions about brokerage services were added in 2006. Less than 1 percent of sellers chose an agent based on his or her commission.
Sellers largely want agents to price their home competitively, find a buyer, market the property and sell within a specific timeframe. Reputation was the most important factor in choosing an agent, cited by 36 percent of respondents, followed by trustworthiness at 21 percent.
Home buyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. The most commonly cited benefits of using an agent are helping buyers understand the process, pointing out unnoticed features or faults, negotiating better contract terms, and providing a better list of service providers. Comparable to sellers, buyers chose agents based on a referral or had used them in a previous transaction, with trustworthiness and reputation being the biggest factors in selecting an agent.
Buyers use a wide variety of resources in searching for a home: 90 percent use the Internet, 87 percent rely on real estate agents, 59 percent yard signs, 46 percent attend open houses and 40 percent look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online and then contact an agent.
When asked where they first learned about the home purchased, 36 percent of buyers said a real estate agent; 36 percent the Internet; 12 percent from yard signs; 6 percent from a friend, neighbor or relative; 5 percent home builders; 2 percent a print or newspaper ad; 2 percent directly from the seller; and less than 1 percent a home book or magazine.
Eight out of 10 home buyers who used the Internet to search for a home purchased through a real estate agent, in contrast with 63 percent of non-Internet users who were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service Web sites were the most popular Internet resource, used by 60 percent of buyers; followed by Realtor.com and real estate company sites, each with 46 percent; real estate agent Web sites, 45 percent; other Web sites with real estate listings, 30 percent; for-sale-by-owner sites, 17 percent; and local newspaper sites, 9 percent; other categories were smaller.
Sixty percent of buyers are married couples, 21 percent are single women, 10 percent single men, 8 percent unmarried couples and 1 percent other. Fifteen percent are non-white, 9 percent were born outside of the United States, and 4 percent primarily speak a language other than English.
Seventy-eight percent of all respondents purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 5 percent some other kind of housing. Environmentally friendly features remain a significant factor: 88 percent of buyers said that heating and cooling costs were important, 72 percent desired energy efficient appliances, and 69 percent wanted energy efficient lighting.
Commuting costs continue to factor greatly in neighborhood selection, with 36 percent of buyers saying they were very important and another 42 percent saying transportation costs were somewhat important.
Fifty-four percent of all homes purchased were in a suburb or subdivision, 18 percent were in an urban area, 17 percent in a small town, 10 percent in a rural area and 1 percent in a resort or recreation area. The median distance from the previous residence was 12 miles. The typical home size was 1,800 square feet, ranging from 1,600 for first-time buyers to 2,100 square feet for repeat buyers.
The biggest factors influencing neighborhood choice were quality of the neighborhood, cited by 64 percent of respondents; convenience to jobs, 50 percent; overall affordability of homes, 43 percent; and convenience to family and friends, 37 percent. Other factors with relatively high responses include quality of the school district, 26 percent; convenience to shopping, 26 percent; neighborhood design, 23 percent; and convenience to schools, 21 percent.
The difficulty of for-sale-by-owner transactions increased with challenging market conditions over the past year. The level of FSBOs was a record low 11 percent, down from 13 percent in 2008. The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18 percent in 1997.
Many of these properties were not placed on the open market – 42 percent were “closely held” between parties who knew each other in advance, such as family or acquaintances. Factoring out properties that were not placed on the open market, the actual number of homes sold without professional assistance was a record low 6 percent – the rest were unrepresented sellers in private transactions. The market share of open-market FSBOs is nearly half of what it was five years ago – 10 percent were sold on the open market in 2004.
The median home price for sellers who used an agent was $215,000 vs. $172,000 for a home sold directly by an owner, but there were important differences. The median income of unassisted sellers was $76,900, in contrast with $94,200 for agent-assisted sellers, and the homes were more likely to be in a rural area. Unassisted sellers also were more likely to be selling a mobile or manufactured home. These factors suggest a somewhat lower value for FSBO properties.
The most difficult tasks reported by unrepresented sellers are preparing and fixing the home for sale, getting the right price, understanding and performing paperwork, and selling within the planned length of time.
Richard.dorr@comcast.net SmartClickRealty
Monday, November 30, 2009
Wednesday, November 18, 2009
Opportunity - Call Me!
Do You See The Light!
There are still too many houses.The lights are on in the housing market. But at more and more places, nobody’s home.
To read the full story, please click here:
http://money.cnn.com/2009/11/10/news/economy/too.many.houses.fortune/index.htm
Los Angeles Times New HUD rules aim to get rid of closing cost surprises
Starting Jan. 1, loan charges and settlement fees will be spelled out on a revised version of the good-faith estimates form that borrowers are supposed to get after their mortgage applications.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-harney8-2009nov08,0,1438554.story
The Sacramento Bee
Workshops for Latino immigrants focus on preventing foreclosure. A new pilot program aimed at preventing foreclosure among Latino immigrants launched this week in Sacramento, Stockton, and Modesto.
To read the full story, please click here:
http://www.sacbee.com/business/story/2316053.html
Reuters
“Short sale” battles weigh on U.S. housing recovery. Home equity lenders faced with losses from the U.S. property slump are holding out for more money in distressed sales, slowing transactions needed to support a recovery, real estate agents and analysts say.
To read the full story, please click here:
http://www.reuters.com/article/ousivMolt/idUSTRE5A34AA20091104
CNN Money
Home prices may be bottoming out Most U.S. cities saw gains in the median price of single-family homes sold during the three months ended Sept. 30, according to the NATIONAL ASSOCIATION OF REALTORS ® ’ quarterly report on home prices. This is the second consecutive quarter of gains.
To read the full story, please click here:
http://money.cnn.com/2009/11/10/real_estate/latest_home_prices/index.htm
Richard.dorr@SmartClickRealty.com
There are still too many houses.The lights are on in the housing market. But at more and more places, nobody’s home.
To read the full story, please click here:
http://money.cnn.com/2009/11/10/news/economy/too.many.houses.fortune/index.htm
Los Angeles Times New HUD rules aim to get rid of closing cost surprises
Starting Jan. 1, loan charges and settlement fees will be spelled out on a revised version of the good-faith estimates form that borrowers are supposed to get after their mortgage applications.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-harney8-2009nov08,0,1438554.story
The Sacramento Bee
Workshops for Latino immigrants focus on preventing foreclosure. A new pilot program aimed at preventing foreclosure among Latino immigrants launched this week in Sacramento, Stockton, and Modesto.
To read the full story, please click here:
http://www.sacbee.com/business/story/2316053.html
Reuters
“Short sale” battles weigh on U.S. housing recovery. Home equity lenders faced with losses from the U.S. property slump are holding out for more money in distressed sales, slowing transactions needed to support a recovery, real estate agents and analysts say.
To read the full story, please click here:
http://www.reuters.com/article/ousivMolt/idUSTRE5A34AA20091104
CNN Money
Home prices may be bottoming out Most U.S. cities saw gains in the median price of single-family homes sold during the three months ended Sept. 30, according to the NATIONAL ASSOCIATION OF REALTORS ® ’ quarterly report on home prices. This is the second consecutive quarter of gains.
To read the full story, please click here:
http://money.cnn.com/2009/11/10/real_estate/latest_home_prices/index.htm
Richard.dorr@SmartClickRealty.com
Friday, November 13, 2009
New York Times
New York Times
Getting serious about your house and the market It often is difficult for homeowners to objectively value their homes, which often reflects their sense of personal style. However, by consulting with a REALTOR ® , using online resources, investigating neighborhood trends, and soliciting the opinion of friends, homeowners can arrive at a reasonably accurate appraisal.
KEEP THIS IN MIND • REALTORS ® and real estate appraisers are the best sources of information on current market conditions. Consumers should begin the home valuation process by consulting with their REALTOR ® or a local real estate appraiser.
REALTORS ® can provide homeowners with a list of homes that recently have sold in the area, and use that data to help determine the most accurate and competitive price for the home.
• Homeowners also can contact their local tax assessor’s or county clerk’s office, many of which post
real estate transactions on their Web site. The records will indicate what properties have recently
sold in the neighborhood and the respective sales prices. Consumers should look for homes that
have sold within the last six months for a more accurate picture of current market conditions.
• Online sites such as Zillow.com and trulia.com also provide free online home value estimators.
Consumers should be aware though that these sites derive some of their information from public
records, including tax appraisals, and are subject to error.
• Some real estate experts recommend homeowners attend nearby open houses to see how their
homes compare in size and amenities. Consumers also can consult the Marshall & Swift
Residential Cost Handbook, which professional appraisers use to assess the value of features such
as fireplaces, three-car garages, and the like. The handbook costs $300 and is available in some
business school libraries. An online site, swiftestimator.com, enables homeowners to conduct an
item-by-item calculation of the value of the home. Online sites and books only should be used as
guidelines though, and homeowners are advised to contact a real estate professional to help
determine the current value of their home.
To read the full story, please click here:
http://www.nytimes.com/2009/11/05/garden/05appraisal.html?_r=1&ref=realestate
Richard.dorr@SmartClickRealty.com
Getting serious about your house and the market It often is difficult for homeowners to objectively value their homes, which often reflects their sense of personal style. However, by consulting with a REALTOR ® , using online resources, investigating neighborhood trends, and soliciting the opinion of friends, homeowners can arrive at a reasonably accurate appraisal.
KEEP THIS IN MIND • REALTORS ® and real estate appraisers are the best sources of information on current market conditions. Consumers should begin the home valuation process by consulting with their REALTOR ® or a local real estate appraiser.
REALTORS ® can provide homeowners with a list of homes that recently have sold in the area, and use that data to help determine the most accurate and competitive price for the home.
• Homeowners also can contact their local tax assessor’s or county clerk’s office, many of which post
real estate transactions on their Web site. The records will indicate what properties have recently
sold in the neighborhood and the respective sales prices. Consumers should look for homes that
have sold within the last six months for a more accurate picture of current market conditions.
• Online sites such as Zillow.com and trulia.com also provide free online home value estimators.
Consumers should be aware though that these sites derive some of their information from public
records, including tax appraisals, and are subject to error.
• Some real estate experts recommend homeowners attend nearby open houses to see how their
homes compare in size and amenities. Consumers also can consult the Marshall & Swift
Residential Cost Handbook, which professional appraisers use to assess the value of features such
as fireplaces, three-car garages, and the like. The handbook costs $300 and is available in some
business school libraries. An online site, swiftestimator.com, enables homeowners to conduct an
item-by-item calculation of the value of the home. Online sites and books only should be used as
guidelines though, and homeowners are advised to contact a real estate professional to help
determine the current value of their home.
To read the full story, please click here:
http://www.nytimes.com/2009/11/05/garden/05appraisal.html?_r=1&ref=realestate
Richard.dorr@SmartClickRealty.com
Mortgage Update
C.A.R. Mortgage Update
Q&A: How to rent your home from Fannie Mae
Fannie Mae last week announced a new Deed for Lease™ program. The new program allows borrowers to voluntarily transfer their property back to the lender and then lease back the house at market rate. The lease period is for up to 12 months, with month-to-month contract extensions after that period. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income.
Homeowners thinking of participating in the Deed for Lease™ program should visit Fannie Mae’s loan lookup Web site at http://loanlookup.fanniemae.com/loanlookup/ to see whether their loan is owned or
guaranteed by Fannie. Mortgages backed by the Federal Housing Administration and other government agencies are not eligible for the Deed for Lease ™ program.
To read the full story, please click here:
http://blogs.wsj.com/developments/2009/11/06/qa-how-to-rent-your-home-from-fannie-mae/
To view additional articles, about new home loans, loan modifications, or mortgage refinances, please visit the following:
Housing plan reaches 1 in 5 borrowers
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/11/10/financial/f032154S12.DTL&tsp=1
Fewer banks tightened lending standards last quarter, Federal Reserve says
To read the full story, please click here:
http://www.latimes.com/business/la-fi-fed-loans10-2009nov10,0,7041056.story
Rates on 30-year loans remain below 5 percent
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/11/12/financial/f083015S90.DTL&type=busines
Richard.dorr@SmartClickRealty.com
Q&A: How to rent your home from Fannie Mae
Fannie Mae last week announced a new Deed for Lease™ program. The new program allows borrowers to voluntarily transfer their property back to the lender and then lease back the house at market rate. The lease period is for up to 12 months, with month-to-month contract extensions after that period. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income.
Homeowners thinking of participating in the Deed for Lease™ program should visit Fannie Mae’s loan lookup Web site at http://loanlookup.fanniemae.com/loanlookup/ to see whether their loan is owned or
guaranteed by Fannie. Mortgages backed by the Federal Housing Administration and other government agencies are not eligible for the Deed for Lease ™ program.
To read the full story, please click here:
http://blogs.wsj.com/developments/2009/11/06/qa-how-to-rent-your-home-from-fannie-mae/
To view additional articles, about new home loans, loan modifications, or mortgage refinances, please visit the following:
Housing plan reaches 1 in 5 borrowers
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/11/10/financial/f032154S12.DTL&tsp=1
Fewer banks tightened lending standards last quarter, Federal Reserve says
To read the full story, please click here:
http://www.latimes.com/business/la-fi-fed-loans10-2009nov10,0,7041056.story
Rates on 30-year loans remain below 5 percent
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/11/12/financial/f083015S90.DTL&type=busines
Richard.dorr@SmartClickRealty.com
Thursday, November 12, 2009
Trial Modification Info.
How many trial modifications become permanent?
Under the federal foreclosure prevention plan, borrowers granted a trial modification pay no more than 31% of their income towards their mortgage payment. If the borrower makes three timely payments on his trial modification, he becomes eligible for permanent modification. During the trial period, loan servicers verify the borrowers’ financial status and determine whether to grant a permanent modification. Now that half a million borrowers across America have been paying on their trial loan modifications for some months, what are their chances of receiving a full, permanent modification?
The bridge from trial to permanent modification is just as fraught with bureaucratic pitfalls as the process of obtaining the original trial modification. Loan servicers complain that borrowers are failing to submit the required documentation during the trial period needed to qualify the borrower for a permanent modification. Borrowers are equally accusatory, blaming loan services of losing their paperwork and moving at glacial speeds. Not surprisingly, these are the exact same complaints that were levied by both parties during the first steps of the trial modification process.
It has still yet to be seen how many borrowers will actually be able to upgrade their trial modifications to permanent status. Even if they ultimately do, it’s clear that they have a long, bumpy road ahead to get the deal done.
first tuesday take: And even if a borrower’s trial modification is converted to a permanent modification, just how helpful will be it? Most modifications simply extend the loan term or reduce the interest rate, leaving the principal balance – the real albatross around the borrower’s neck – snugly intact. As has historically been the case, most (65%) of these superficial “extend-and-pretend” modifications, trial and permanent, end with the borrower defaulting again and slipping back into troubled waters. Thus, even a “permanent” modification will likely prove temporary and ineffectual for most negative equity borrowers.
A reduction of the principal balance, a cramdown, equips the borrower with a durable loan-to-value ratio and provides the borrower an honest shot at sustained solvency, not the quick fix offered by the lesser forms of modification which actually increase negative equity.
richard@SmartClickRealty.com
Under the federal foreclosure prevention plan, borrowers granted a trial modification pay no more than 31% of their income towards their mortgage payment. If the borrower makes three timely payments on his trial modification, he becomes eligible for permanent modification. During the trial period, loan servicers verify the borrowers’ financial status and determine whether to grant a permanent modification. Now that half a million borrowers across America have been paying on their trial loan modifications for some months, what are their chances of receiving a full, permanent modification?
The bridge from trial to permanent modification is just as fraught with bureaucratic pitfalls as the process of obtaining the original trial modification. Loan servicers complain that borrowers are failing to submit the required documentation during the trial period needed to qualify the borrower for a permanent modification. Borrowers are equally accusatory, blaming loan services of losing their paperwork and moving at glacial speeds. Not surprisingly, these are the exact same complaints that were levied by both parties during the first steps of the trial modification process.
It has still yet to be seen how many borrowers will actually be able to upgrade their trial modifications to permanent status. Even if they ultimately do, it’s clear that they have a long, bumpy road ahead to get the deal done.
first tuesday take: And even if a borrower’s trial modification is converted to a permanent modification, just how helpful will be it? Most modifications simply extend the loan term or reduce the interest rate, leaving the principal balance – the real albatross around the borrower’s neck – snugly intact. As has historically been the case, most (65%) of these superficial “extend-and-pretend” modifications, trial and permanent, end with the borrower defaulting again and slipping back into troubled waters. Thus, even a “permanent” modification will likely prove temporary and ineffectual for most negative equity borrowers.
A reduction of the principal balance, a cramdown, equips the borrower with a durable loan-to-value ratio and provides the borrower an honest shot at sustained solvency, not the quick fix offered by the lesser forms of modification which actually increase negative equity.
richard@SmartClickRealty.com
Wednesday, November 11, 2009
Unknown Soldier
Because of You, Unknown Soldier
By Courtney Tanabe
Because of you, I am here
Because of you, I am able to live freely
Yet I do not know you
And I have not done anything for you
But there you stand, ready to fight
And there you are prepared to die
For me
You've fought before
And you'll fight again
For someone you don't know
So thank you Unknown Soldier
Fighting for me
I'm here because of you
And I owe my future to you
By Courtney Tanabe
Because of you, I am here
Because of you, I am able to live freely
Yet I do not know you
And I have not done anything for you
But there you stand, ready to fight
And there you are prepared to die
For me
You've fought before
And you'll fight again
For someone you don't know
So thank you Unknown Soldier
Fighting for me
I'm here because of you
And I owe my future to you
SAFETY AT HOME
Home Safety Tips
Yard
A swimming pool should have a fence or barrier surrounding all four sides with self-closing and self-latching gates. If the house is part of the barrier, all doors leading from the house to the pool should be protected with an alarm. Position latches out of reach of young children. Keep all doors and windows leading to the pool area secure to prevent small children from getting to the pool.
Never leave a child unsupervised near a pool. During social gatherings at or near a pool, appoint a "designated watcher" to protect young children from pool accidents. Adults may take turns being the "watcher." When adults become preoccupied, children are at risk. If a child is missing, check the pool first. Seconds count in preventing death or disability. Go to the edge of the pool and scan the entire pool, bottom and surface, as well as the pool area.
Place tables and chairs well away from the pool fence to prevent children from climbing into the pool area.
Have a telephone at poolside to avoid having to leave children unattended in or near the pool to answer a telephone elsewhere. Keep emergency numbers at the poolside telephone.
Learn CPR (cardiopulmonary resuscitation). Keep rescue equipment by the pool.
Divers should observe the following precautions. Never dive into above-ground pools. They are too shallow. Don't dive from the side of an in-ground pool. Enter the water feet first. Dive only from the end of the diving board and not from the sides. Dive with your hands in front of you and always steer up immediately upon entering the water to avoid hitting the bottom or sides of the pool. Don't dive if you have been using alcohol
or drugs because your reaction time may be too slow. Improper use of pool slides presents the same danger as improper diving techniques. Never slide down head first; slide down feet first only.
Always store pesticides away from children's reach, in a locked cabinet or garden shed. Read the label first and follow the directions to the letter, including all precautions and restrictions. Before applying pesticides (indoors and outdoors), remove children and their toys from the area and keep them away until it is dry or as recommended by the label. Never leave pesticides unattended when you are using them -- not even for a few
minutes. Never transfer pesticides to other containers -- children may associate certain containers with food or drink. Use child-resistant packaging properly by closing the container tightly after use. Alert others to the potential hazard, especially grandparents and caregivers.
Use paint strippers outdoors if possible. If you must use them indoors, cross-ventilate by opening all doors and windows. Make sure there is fresh air movement throughout the room. Ventilate the area before, during, and after applying and stripping. Never use any paint stripper in a poorly ventilated area. If work must be done indoors under low ventilation conditions, consider having the work done professionally instead of
attempting it yourself. Do not use flammable paint strippers near any source of sparks, flame, or high heat. Do not work near gas stoves, kerosene heaters, gas or electric water heaters, gas or electric clothes dryers, gas or electric furnaces, gas or electric space heaters, sanders, buffers, or other electric hand tools. Open flames, cigarettes, matches, lighters, pilot light, or electric sparks can cause the chemicals in the paint strippers to suddenly catch fire.
www.smartClickrealty.com richard.dorr@comcast.net
Yard
A swimming pool should have a fence or barrier surrounding all four sides with self-closing and self-latching gates. If the house is part of the barrier, all doors leading from the house to the pool should be protected with an alarm. Position latches out of reach of young children. Keep all doors and windows leading to the pool area secure to prevent small children from getting to the pool.
Never leave a child unsupervised near a pool. During social gatherings at or near a pool, appoint a "designated watcher" to protect young children from pool accidents. Adults may take turns being the "watcher." When adults become preoccupied, children are at risk. If a child is missing, check the pool first. Seconds count in preventing death or disability. Go to the edge of the pool and scan the entire pool, bottom and surface, as well as the pool area.
Place tables and chairs well away from the pool fence to prevent children from climbing into the pool area.
Have a telephone at poolside to avoid having to leave children unattended in or near the pool to answer a telephone elsewhere. Keep emergency numbers at the poolside telephone.
Learn CPR (cardiopulmonary resuscitation). Keep rescue equipment by the pool.
Divers should observe the following precautions. Never dive into above-ground pools. They are too shallow. Don't dive from the side of an in-ground pool. Enter the water feet first. Dive only from the end of the diving board and not from the sides. Dive with your hands in front of you and always steer up immediately upon entering the water to avoid hitting the bottom or sides of the pool. Don't dive if you have been using alcohol
or drugs because your reaction time may be too slow. Improper use of pool slides presents the same danger as improper diving techniques. Never slide down head first; slide down feet first only.
Always store pesticides away from children's reach, in a locked cabinet or garden shed. Read the label first and follow the directions to the letter, including all precautions and restrictions. Before applying pesticides (indoors and outdoors), remove children and their toys from the area and keep them away until it is dry or as recommended by the label. Never leave pesticides unattended when you are using them -- not even for a few
minutes. Never transfer pesticides to other containers -- children may associate certain containers with food or drink. Use child-resistant packaging properly by closing the container tightly after use. Alert others to the potential hazard, especially grandparents and caregivers.
Use paint strippers outdoors if possible. If you must use them indoors, cross-ventilate by opening all doors and windows. Make sure there is fresh air movement throughout the room. Ventilate the area before, during, and after applying and stripping. Never use any paint stripper in a poorly ventilated area. If work must be done indoors under low ventilation conditions, consider having the work done professionally instead of
attempting it yourself. Do not use flammable paint strippers near any source of sparks, flame, or high heat. Do not work near gas stoves, kerosene heaters, gas or electric water heaters, gas or electric clothes dryers, gas or electric furnaces, gas or electric space heaters, sanders, buffers, or other electric hand tools. Open flames, cigarettes, matches, lighters, pilot light, or electric sparks can cause the chemicals in the paint strippers to suddenly catch fire.
www.smartClickrealty.com richard.dorr@comcast.net
Friday, November 6, 2009
Homeowners win big with extension and expansion of federal tax credit
The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.
The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation.
Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was "the most important" or a "very important" factor in their decision to buy a home.
Richard.dorr@comcast.net / www.SmartClickRealty.com
The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.
The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation.
Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was "the most important" or a "very important" factor in their decision to buy a home.
Richard.dorr@comcast.net / www.SmartClickRealty.com
Thursday, November 5, 2009
Loan limit extensions signed into law
President Obama late Friday signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. The resolution was part of a broader piece of budgetary legislation that will prevent a government shutdown.
Both C.A.R. and NAR have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits. Last week’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.
SmartClickRealty
Richard.Dorr@comcast.net/Broker Associate-916-786-0542
President Obama late Friday signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. The resolution was part of a broader piece of budgetary legislation that will prevent a government shutdown.
Both C.A.R. and NAR have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits. Last week’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.
SmartClickRealty
Richard.Dorr@comcast.net/Broker Associate-916-786-0542
Thursday, October 29, 2009
Mold Information
Frequently Asked Questions About Mold
No doubt you're hearing a lot about mold in the news and maybe even from concerned homebuyers and sellers. To help you separate what is and isn't known about the health threats of mold, NAR asked building science consultant Natham Yost to prepare a fact sheet on mold contamination basics.
What causes mold to develop?
How does mold get into a building?
Are there harmful and non-harmful molds?
Does mold affect everyone the same way?
How much mold exposure is harmful?
Can mold exposure cause brain damage or death?
Does tighter building construction promote mold development?
Do new building materials (e.g. drywall or paper faced gypsum board) promote mold growth?
Are there reliable tests to indicate the presence of mold?
If mold is present, what’s the best way to get rid of it?
Is it possible to completely eliminate mold from the inside of a home or office building?
Should I use bleach to get rid of mold?
How do I know when the mold clean up is finished?
Where can I get more information about mold?
About the Author
BY DR. NATHAN YOST, MD.
Building Sciences Corporation
What causes mold to develop?
Mold requires nutrients, water, oxygen and favorable temperatures to grow. Nutrients for mold are present in dead organic material such as wood, paper or fabrics; mold can also derive nutrients from some synthetic products such as paints and adhesives. Mold requires moisture, although some mold species can obtain that moisture from moist air when the relative humidity is above 70 per cent. Many molds thrive at normal indoor temperatures; few if any molds are able to grow below 40 F or above 100 F. Outside this range molds may remain dormant or inactive; they may begin to grow again when the temperature is more favorable. Temperatures well above 100 F will kill mold and mold spores, but the exact temperature required to kill specific species is not well established.
How does mold get into a building?
Molds are decomposers of organic material such as wood, plants and animals. Mold and mold spores are found in high concentrations wherever there is dead matter such as a pile of leaves, manure or compost. Mold spores enter buildings through the air or on people, animals and objects that are brought into the building. Spores are small bundles of genetic material and chemicals (similar to seeds) that molds make under certain conditions.
Are there harmful and non-harmful molds?
There are only a few molds that can cause infection in healthy humans. Some molds cause infections only in people with compromised immune systems.
The biggest health problem from exposure to mold is allergy and asthma in susceptible people. There are more than 100,000 types of mold. Good information has been developed for only a small number of these molds – at least in terms of their effects on human health. Most people tolerate exposure to moderate levels of many different molds without any apparent adverse health effects.
Some molds produce powerful chemicals called “mycotoxins” that can produce illness in animals and people. Scientific knowledge about the health effects of these toxins on humans is quite limited.
Does mold affect everyone the same way?
No. Some individuals have a genetic makeup that puts them at risk for developing allergies to mold. People who have an allergy to mold, especially if they also have asthma, can become ill from exposure to a small amount of mold. Individuals also seem to be quite different in their response to exposure to the toxic chemicals that some molds release. These differences between individuals contribute to the difficult question of determining safe exposure limits for mold.
How much mold exposure is harmful?
No one knows the answer to this question for several reasons. Individuals are very different with respect to the amount of mold exposure they can tolerate. Children under the age of one year may be more susceptible to the effects of some molds than older individuals. Measuring or estimating “exposure” levels is very difficult. “Exposure” means the amount of mold (microscopic spores and mold fragments) that gets into a person usually by breathing, but also by eating or absorption through the skin. For example, a building may have a lot of mold in the walls but very little of that mold is getting into the air stream. In that case the people working or living in that building would have little mold exposure.
Can mold exposure cause brain damage or death?
Although some “experts” claim that individuals have brain damage or have died because of exposure to mold and especially mold toxins, there is no good science at this time to support these claims. Consequently it is prudent to minimize one’s exposure to really moldy environments. By “really moldy” we mean where there are large visible areas of mold (more than a few square feet) or the building has a “musty” odor because of hidden mold growth. There are many epidemiological studies showing that people who live in houses with dampness have many more health problems, especially respiratory, than do people who live in dry houses. This association does not “prove” that it is the mold that is responsible for the increase in illness. However, it does support the assertion that it is not wise to live in damp, moldy buildings.
Does tighter building construction promote mold development?
Tighter building construction does not by itself promote mold growth, but tight construction combined with some poor choices in design, building materials or operations can increase the probability of mold growth. What do we mean? The tighter the building construction the less air exchange there is between the inside air and the outside air. Whatever gets into the inside air stays there longer than it would in a house with loose construction. Moisture that gets into the air from activities such as cooking, bathing and even breathing will remain in a tight house longer than it would in a loose house. That’s why exhaust fans should be installed in bathrooms and kitchens and vented to the outside. Clothes dryers should also be vented to the outside.
Tight construction permits control of the air exchange between the inside and the outside and can prevent the deposition of moisture in walls and roofs. Controlling moisture, including indoor relative humidity is the key to preventing mold growth. Tight building construction when combined with source control of moisture (exhaust fans) and controlled ventilation (intentional introduction of outside air) reduces the probability of mold growth in a building. Controlled ventilation can be provided by a duct that brings outside air to the return side of the air handler of a forced air system. A timing device or fan cycler can be programmed to have the air handler turn on for a specified number of minutes each hour even when there is no call for heating or cooling. In cold climates controlled ventilation is frequently provided by a heat recovery ventilator (HRV).
Do new building materials (e.g. drywall or paper faced gypsum board) promote mold growth?
Mold needs water, a nutrient source, oxygen and favorable temperature to grow. Many species of mold love paper faced gypsum board. Why? Making paper involves the mechanical and chemical processing of wood. Paper is largely pre-digested so it is easy for mold to get nutrients from the paper. But unless there is enough moisture present mold can’t grow on the paper. If paper faced gypsum board is kept dry, it can be used and still not have mold. This material is kept dry by controlling the interior relative humidity, keeping rain from entering roofs and walls, and NOT using paper faced gypsum in areas that are likely to get wet. This means no paper faced gypsum board in shower and tub areas. Cement board, mortar or non-paper faced gypsum can safely be used in these damp areas because these products do not contain nutrients to support mold growth.
Are there reliable tests to indicate the presence of mold?
Almost all of us already have two effective mold detectors: our eyes and our noses. If black or green discoloration is noticed that is fuzzy in appearance and is in a location that is damp or had been damp, it is almost certainly mold. If a building smells musty, there probably is mold somewhere; the mold may be on boxes stored in a basement or in walls or in the crawl space. If you want to find mold, look for the presence of water or a location where water was likely to have been. If there is still any question about whether the black stuff is mold, have a reliable laboratory examine the material. All you need to know is whether mold is seen when the material is examined under the microscope.
An increasing number of companies are offering “air testing for mold.” On the surface this seems like a reasonable thing to do. The problem, however, is that the results of most air sampling for mold are meaningless for two reasons. Air sampling for mold was not developed to determine if an environment was safe or had a dangerous level of mold in the air. Air sampling was developed to help identify the location of a hidden reservoir of mold. If the source of mold is already identified, air sampling does not provide additional meaningful information. Furthermore, safe or toxic levels of air borne mold have not been established. An individual air sample for mold provides a “snapshot” of what was in the air during the few minutes of sampling. The results may not be indicative of the amount of mold that is in the air during most of the day.
Air sampling for mold should be done either to obtain an answer to a question that cannot be answered without the air sampling or to obtain data as part of a research project. The Center for Disease Control (CDC), the U.S. Environmental Protection Agency (EPA) and the American Conference of Governmental Industrial Hygienists do not recommend routine air testing for mold.
If mold is present, what’s the best way to get rid of it?
The answer depends on how much mold is present and where it is located. If the mold is on furnishings or boxes simply discard the materials. Moldy materials are not considered hazardous waste; they can be sent to a regular landfill. However, it is smart to seal the mold material in heavy plastic to protect the people who handle it in transit and prevent spreading large amounts of the mold into the building as you carry the material out of it.
If the mold is on a hard surface but occupies less than 10 square feet wash the area with soapy water (scrubbing with a brush may be necessary), rinse and allow the area to dry before repainting. If you have asthma, severe allergies and a weaken immune system get someone else to do the clean up.
Larger areas (greater than 10 square feet in area) should be cleaned by someone with experience in doing this type of work. Remember, determine what caused the moisture problem and correct that problem. Otherwise, mold is likely to recur.
Is it possible to completely eliminate mold from the inside of a home or office building?
The answer depends upon what is meant by “completely eliminate mold.” To keep a building completely free of mold spores requires very efficient air filtration and is only accomplished in special situations such as hospital operating rooms and manufacturing “clean rooms.” Remember, mold spores are in the outside air virtually all the time and some of them will get inside buildings.
However, it is possible to keep mold from growing inside a building. Moisture control is the key to controlling mold in interior spaces. Air filtration can contribute to lowering mold spores in the air but is secondary to moisture control.
Should I use bleach to get rid of mold?
No. Although bleach will kill and decolorize mold, it does not remove mold. Dead mold can still cause allergic reactions. It is not necessary to kill mold to remove mold. Soap and water and scrubbing can remove mold from hard surfaces. The Environmental Protection Agency (EPA), the Center for Disease Control (CDC) and the New York City Health Department agree that bleach or other biocides should not routinely be used to clean up mold.
How do I know when the mold clean up is finished?
The mold cleanup is finished when there is no visible mold remaining and there is no dust or dirt remaining that could contain large amounts of mold and mold spores. Routine clearance testing for mold is not necessary. Leaving a few mold spores behind is not a problem if the underlying moisture problem has been corrected. Remember that mold spores are virtually everywhere. Even if all mold and mold spores are removed as part of the cleanup, spores from outside will re-enter that space. The spores won’t be able to grow unless water is also present.
Where can I get more information about mold?
http://www.epa.gov/iaq/molds/index.html Environmental Protection Agency’s information of Mold/Moisture/Mildew
http://www.cdc.gov/nceh/airpollution/mold/ Center for Disease Control’s information on Mold under Air Pollution and Respiratory Health
http://nyc.gov/html/doh/html/epi/moldrpt1.html - New York City Department of Health “Guidelines on Assessment and Remediation of Fungi in Indoor Environments”
No doubt you're hearing a lot about mold in the news and maybe even from concerned homebuyers and sellers. To help you separate what is and isn't known about the health threats of mold, NAR asked building science consultant Natham Yost to prepare a fact sheet on mold contamination basics.
What causes mold to develop?
How does mold get into a building?
Are there harmful and non-harmful molds?
Does mold affect everyone the same way?
How much mold exposure is harmful?
Can mold exposure cause brain damage or death?
Does tighter building construction promote mold development?
Do new building materials (e.g. drywall or paper faced gypsum board) promote mold growth?
Are there reliable tests to indicate the presence of mold?
If mold is present, what’s the best way to get rid of it?
Is it possible to completely eliminate mold from the inside of a home or office building?
Should I use bleach to get rid of mold?
How do I know when the mold clean up is finished?
Where can I get more information about mold?
About the Author
BY DR. NATHAN YOST, MD.
Building Sciences Corporation
What causes mold to develop?
Mold requires nutrients, water, oxygen and favorable temperatures to grow. Nutrients for mold are present in dead organic material such as wood, paper or fabrics; mold can also derive nutrients from some synthetic products such as paints and adhesives. Mold requires moisture, although some mold species can obtain that moisture from moist air when the relative humidity is above 70 per cent. Many molds thrive at normal indoor temperatures; few if any molds are able to grow below 40 F or above 100 F. Outside this range molds may remain dormant or inactive; they may begin to grow again when the temperature is more favorable. Temperatures well above 100 F will kill mold and mold spores, but the exact temperature required to kill specific species is not well established.
How does mold get into a building?
Molds are decomposers of organic material such as wood, plants and animals. Mold and mold spores are found in high concentrations wherever there is dead matter such as a pile of leaves, manure or compost. Mold spores enter buildings through the air or on people, animals and objects that are brought into the building. Spores are small bundles of genetic material and chemicals (similar to seeds) that molds make under certain conditions.
Are there harmful and non-harmful molds?
There are only a few molds that can cause infection in healthy humans. Some molds cause infections only in people with compromised immune systems.
The biggest health problem from exposure to mold is allergy and asthma in susceptible people. There are more than 100,000 types of mold. Good information has been developed for only a small number of these molds – at least in terms of their effects on human health. Most people tolerate exposure to moderate levels of many different molds without any apparent adverse health effects.
Some molds produce powerful chemicals called “mycotoxins” that can produce illness in animals and people. Scientific knowledge about the health effects of these toxins on humans is quite limited.
Does mold affect everyone the same way?
No. Some individuals have a genetic makeup that puts them at risk for developing allergies to mold. People who have an allergy to mold, especially if they also have asthma, can become ill from exposure to a small amount of mold. Individuals also seem to be quite different in their response to exposure to the toxic chemicals that some molds release. These differences between individuals contribute to the difficult question of determining safe exposure limits for mold.
How much mold exposure is harmful?
No one knows the answer to this question for several reasons. Individuals are very different with respect to the amount of mold exposure they can tolerate. Children under the age of one year may be more susceptible to the effects of some molds than older individuals. Measuring or estimating “exposure” levels is very difficult. “Exposure” means the amount of mold (microscopic spores and mold fragments) that gets into a person usually by breathing, but also by eating or absorption through the skin. For example, a building may have a lot of mold in the walls but very little of that mold is getting into the air stream. In that case the people working or living in that building would have little mold exposure.
Can mold exposure cause brain damage or death?
Although some “experts” claim that individuals have brain damage or have died because of exposure to mold and especially mold toxins, there is no good science at this time to support these claims. Consequently it is prudent to minimize one’s exposure to really moldy environments. By “really moldy” we mean where there are large visible areas of mold (more than a few square feet) or the building has a “musty” odor because of hidden mold growth. There are many epidemiological studies showing that people who live in houses with dampness have many more health problems, especially respiratory, than do people who live in dry houses. This association does not “prove” that it is the mold that is responsible for the increase in illness. However, it does support the assertion that it is not wise to live in damp, moldy buildings.
Does tighter building construction promote mold development?
Tighter building construction does not by itself promote mold growth, but tight construction combined with some poor choices in design, building materials or operations can increase the probability of mold growth. What do we mean? The tighter the building construction the less air exchange there is between the inside air and the outside air. Whatever gets into the inside air stays there longer than it would in a house with loose construction. Moisture that gets into the air from activities such as cooking, bathing and even breathing will remain in a tight house longer than it would in a loose house. That’s why exhaust fans should be installed in bathrooms and kitchens and vented to the outside. Clothes dryers should also be vented to the outside.
Tight construction permits control of the air exchange between the inside and the outside and can prevent the deposition of moisture in walls and roofs. Controlling moisture, including indoor relative humidity is the key to preventing mold growth. Tight building construction when combined with source control of moisture (exhaust fans) and controlled ventilation (intentional introduction of outside air) reduces the probability of mold growth in a building. Controlled ventilation can be provided by a duct that brings outside air to the return side of the air handler of a forced air system. A timing device or fan cycler can be programmed to have the air handler turn on for a specified number of minutes each hour even when there is no call for heating or cooling. In cold climates controlled ventilation is frequently provided by a heat recovery ventilator (HRV).
Do new building materials (e.g. drywall or paper faced gypsum board) promote mold growth?
Mold needs water, a nutrient source, oxygen and favorable temperature to grow. Many species of mold love paper faced gypsum board. Why? Making paper involves the mechanical and chemical processing of wood. Paper is largely pre-digested so it is easy for mold to get nutrients from the paper. But unless there is enough moisture present mold can’t grow on the paper. If paper faced gypsum board is kept dry, it can be used and still not have mold. This material is kept dry by controlling the interior relative humidity, keeping rain from entering roofs and walls, and NOT using paper faced gypsum in areas that are likely to get wet. This means no paper faced gypsum board in shower and tub areas. Cement board, mortar or non-paper faced gypsum can safely be used in these damp areas because these products do not contain nutrients to support mold growth.
Are there reliable tests to indicate the presence of mold?
Almost all of us already have two effective mold detectors: our eyes and our noses. If black or green discoloration is noticed that is fuzzy in appearance and is in a location that is damp or had been damp, it is almost certainly mold. If a building smells musty, there probably is mold somewhere; the mold may be on boxes stored in a basement or in walls or in the crawl space. If you want to find mold, look for the presence of water or a location where water was likely to have been. If there is still any question about whether the black stuff is mold, have a reliable laboratory examine the material. All you need to know is whether mold is seen when the material is examined under the microscope.
An increasing number of companies are offering “air testing for mold.” On the surface this seems like a reasonable thing to do. The problem, however, is that the results of most air sampling for mold are meaningless for two reasons. Air sampling for mold was not developed to determine if an environment was safe or had a dangerous level of mold in the air. Air sampling was developed to help identify the location of a hidden reservoir of mold. If the source of mold is already identified, air sampling does not provide additional meaningful information. Furthermore, safe or toxic levels of air borne mold have not been established. An individual air sample for mold provides a “snapshot” of what was in the air during the few minutes of sampling. The results may not be indicative of the amount of mold that is in the air during most of the day.
Air sampling for mold should be done either to obtain an answer to a question that cannot be answered without the air sampling or to obtain data as part of a research project. The Center for Disease Control (CDC), the U.S. Environmental Protection Agency (EPA) and the American Conference of Governmental Industrial Hygienists do not recommend routine air testing for mold.
If mold is present, what’s the best way to get rid of it?
The answer depends on how much mold is present and where it is located. If the mold is on furnishings or boxes simply discard the materials. Moldy materials are not considered hazardous waste; they can be sent to a regular landfill. However, it is smart to seal the mold material in heavy plastic to protect the people who handle it in transit and prevent spreading large amounts of the mold into the building as you carry the material out of it.
If the mold is on a hard surface but occupies less than 10 square feet wash the area with soapy water (scrubbing with a brush may be necessary), rinse and allow the area to dry before repainting. If you have asthma, severe allergies and a weaken immune system get someone else to do the clean up.
Larger areas (greater than 10 square feet in area) should be cleaned by someone with experience in doing this type of work. Remember, determine what caused the moisture problem and correct that problem. Otherwise, mold is likely to recur.
Is it possible to completely eliminate mold from the inside of a home or office building?
The answer depends upon what is meant by “completely eliminate mold.” To keep a building completely free of mold spores requires very efficient air filtration and is only accomplished in special situations such as hospital operating rooms and manufacturing “clean rooms.” Remember, mold spores are in the outside air virtually all the time and some of them will get inside buildings.
However, it is possible to keep mold from growing inside a building. Moisture control is the key to controlling mold in interior spaces. Air filtration can contribute to lowering mold spores in the air but is secondary to moisture control.
Should I use bleach to get rid of mold?
No. Although bleach will kill and decolorize mold, it does not remove mold. Dead mold can still cause allergic reactions. It is not necessary to kill mold to remove mold. Soap and water and scrubbing can remove mold from hard surfaces. The Environmental Protection Agency (EPA), the Center for Disease Control (CDC) and the New York City Health Department agree that bleach or other biocides should not routinely be used to clean up mold.
How do I know when the mold clean up is finished?
The mold cleanup is finished when there is no visible mold remaining and there is no dust or dirt remaining that could contain large amounts of mold and mold spores. Routine clearance testing for mold is not necessary. Leaving a few mold spores behind is not a problem if the underlying moisture problem has been corrected. Remember that mold spores are virtually everywhere. Even if all mold and mold spores are removed as part of the cleanup, spores from outside will re-enter that space. The spores won’t be able to grow unless water is also present.
Where can I get more information about mold?
http://www.epa.gov/iaq/molds/index.html Environmental Protection Agency’s information of Mold/Moisture/Mildew
http://www.cdc.gov/nceh/airpollution/mold/ Center for Disease Control’s information on Mold under Air Pollution and Respiratory Health
http://nyc.gov/html/doh/html/epi/moldrpt1.html - New York City Department of Health “Guidelines on Assessment and Remediation of Fungi in Indoor Environments”
Monday, October 19, 2009
Home Safe Home®
Create a safer home by taking simple precautions.
Be prepared
Have telephones in easy reach of both your bed and the place you sit most often.
Place emergency phone numbers on or near every phone in your home.
Buy a first-aid kit. Keep one in both your home and your car.
Avoid Fires
Install smoke alarms and carbon monoxide alarms throughout the house. Test them periodically to make sure they work. Batteries should be changed at least once a year.
Place fire extinguishers in the kitchen and other rooms. Make sure you know how to use them.
Never smoke in bed.
Turn off appliances when they are not in use.
Run electrical cords along walls, not under rugs.
Don't overload outlets and extension cords.
Never store flammable liquids such as cleaning agents and paint supplies near heating units.
Keep space heaters a safe distance from combustibles. Be sure to follow the manufacturer's guidelines.
Have more than one escape route from your home. Practice these routes with your family.
A Recipe for Careful Cooking
Keep flammable objects such as curtains, aprons and dishtowels away from stoves.
Never wear loose clothing near a stovetop while cooking.
Never leave cooking unattended. Don't cook if you are drowsy.
Heat oil slowly. Heating oil too quickly can easily start a fire.
If a pan catches fire, carefully place a lid over the pan and turn off the heat. Leave the lid on until completely cool.
Always clean appliances and surfaces after cooking to prevent grease buildup.
Make sure handles on cookware are secure and always turned toward the center of the stove when cooking.
Use a step stool instead of a chair to climb to a high shelf.
Avoid bumps, burns, bruises and falls
Make sure staircases are well lit and have convenient switches and night-lights at the top and bottom.
Securely fasten all carpeting and make sure all throw rugs or area rugs have non-skid backing.
Install rubber mats or safety decals in bathtubs and showers.
Close cabinet doors and drawers when they are not in use.
Keep staircases and hallways free of clutter.
Never go up and down stairs carrying things that could block your vision or put you off balance.
Need more information?
www.RichardDorr.com
Create a safer home by taking simple precautions.
Be prepared
Have telephones in easy reach of both your bed and the place you sit most often.
Place emergency phone numbers on or near every phone in your home.
Buy a first-aid kit. Keep one in both your home and your car.
Avoid Fires
Install smoke alarms and carbon monoxide alarms throughout the house. Test them periodically to make sure they work. Batteries should be changed at least once a year.
Place fire extinguishers in the kitchen and other rooms. Make sure you know how to use them.
Never smoke in bed.
Turn off appliances when they are not in use.
Run electrical cords along walls, not under rugs.
Don't overload outlets and extension cords.
Never store flammable liquids such as cleaning agents and paint supplies near heating units.
Keep space heaters a safe distance from combustibles. Be sure to follow the manufacturer's guidelines.
Have more than one escape route from your home. Practice these routes with your family.
A Recipe for Careful Cooking
Keep flammable objects such as curtains, aprons and dishtowels away from stoves.
Never wear loose clothing near a stovetop while cooking.
Never leave cooking unattended. Don't cook if you are drowsy.
Heat oil slowly. Heating oil too quickly can easily start a fire.
If a pan catches fire, carefully place a lid over the pan and turn off the heat. Leave the lid on until completely cool.
Always clean appliances and surfaces after cooking to prevent grease buildup.
Make sure handles on cookware are secure and always turned toward the center of the stove when cooking.
Use a step stool instead of a chair to climb to a high shelf.
Avoid bumps, burns, bruises and falls
Make sure staircases are well lit and have convenient switches and night-lights at the top and bottom.
Securely fasten all carpeting and make sure all throw rugs or area rugs have non-skid backing.
Install rubber mats or safety decals in bathtubs and showers.
Close cabinet doors and drawers when they are not in use.
Keep staircases and hallways free of clutter.
Never go up and down stairs carrying things that could block your vision or put you off balance.
Need more information?
www.RichardDorr.com
Friday, October 9, 2009
Home Safety Tips & Home Information
Home InformationMost accidents occur at home and many of them are preventable, so it is important that your home is as safe as possible. Here are some helpful tips from the U.S. Consumer Product Safety Commission on making your home a safer place for everyone.
Bathroom: A light switch near the bathroom door will prevent you from walking through a dark area. Install a night light. Inexpensive lights that plug into outlets are available.
Consider replacing the existing switch with a "glow switch" that can be seen in the dark.Electrical appliances and power cords can cause shock or electrocution if they come in contact with water.
Consider adding new outlets for convenience and safety; ask your electrician to install outlets equipped with ground fault circuit interrupters (GFCIs) to protect against electric shock. A GFCI is a shock-protection device that will detect electrical fault and shut off electricity before serious injury or death occurs.
Wet soapy tile or porcelain surfaces are especially slippery and may contribute to falls. Apply textured strips or appliqués on the floors of tubs and showers. Use non-skid mats in the tub and shower, and on the bathroom floor. Grab bars can help you get into and out of your tub or shower, and can help prevent falls.
Check existing bars for strength and stability, and repair if necessary. Attach grab bars through the tile to structural supports in the wall, or install bars specifically designed to attach to the sides of the bathtub.
Water temperature above 120 degrees can cause tap water scalds. Lower the setting on your hot water heater to "Low" or 120 degrees. If you are unfamiliar with the controls of your water heater, ask a qualified person to adjust it for you. If your hot water system is controlled by the landlord, ask the landlord to consider lowering the setting.
If the water heater does not have a temperature setting, you can use a thermometer to check the temperature of the water at the tap. Always check water temperature by hand before entering bath or shower.
Taking baths, rather than showers, reduces the risk of a scald from suddenly changing water temperatures.
Grandparents should use child-resistant vials if they are able to. Although grandparents may get traditional easy-to-open closures by asking their pharmacist for them, the child-resistant vials should be used whenever children are around.
Store all medicines separately from household products, and store all household chemical products away from food. Keep items in their original containers. Leave the original labels on all products, and read the label before using.
Always leave the light on when giving or taking medicines. Clean out the medicine cabinet periodically, and safely dispose of unneeded medicines when the illness for which they were prescribed is over. Pour contents down drain or toilet, and rinse container before discarding.
Turn on a light at night and put on your glasses to read the label when you need to take a medicine. If any questions arise, consult your physician. Never mix medicines and alcohol, and never take more than the prescribed amount of medicine. Never "borrow" a friend's medicine or take old medicines.
Tell your doctor what other medicines you are taking so you can avoid adverse drug interactions.
www.richarddorr.com Home Information
Home InformationMost accidents occur at home and many of them are preventable, so it is important that your home is as safe as possible. Here are some helpful tips from the U.S. Consumer Product Safety Commission on making your home a safer place for everyone.
Bathroom: A light switch near the bathroom door will prevent you from walking through a dark area. Install a night light. Inexpensive lights that plug into outlets are available.
Consider replacing the existing switch with a "glow switch" that can be seen in the dark.Electrical appliances and power cords can cause shock or electrocution if they come in contact with water.
Consider adding new outlets for convenience and safety; ask your electrician to install outlets equipped with ground fault circuit interrupters (GFCIs) to protect against electric shock. A GFCI is a shock-protection device that will detect electrical fault and shut off electricity before serious injury or death occurs.
Wet soapy tile or porcelain surfaces are especially slippery and may contribute to falls. Apply textured strips or appliqués on the floors of tubs and showers. Use non-skid mats in the tub and shower, and on the bathroom floor. Grab bars can help you get into and out of your tub or shower, and can help prevent falls.
Check existing bars for strength and stability, and repair if necessary. Attach grab bars through the tile to structural supports in the wall, or install bars specifically designed to attach to the sides of the bathtub.
Water temperature above 120 degrees can cause tap water scalds. Lower the setting on your hot water heater to "Low" or 120 degrees. If you are unfamiliar with the controls of your water heater, ask a qualified person to adjust it for you. If your hot water system is controlled by the landlord, ask the landlord to consider lowering the setting.
If the water heater does not have a temperature setting, you can use a thermometer to check the temperature of the water at the tap. Always check water temperature by hand before entering bath or shower.
Taking baths, rather than showers, reduces the risk of a scald from suddenly changing water temperatures.
Grandparents should use child-resistant vials if they are able to. Although grandparents may get traditional easy-to-open closures by asking their pharmacist for them, the child-resistant vials should be used whenever children are around.
Store all medicines separately from household products, and store all household chemical products away from food. Keep items in their original containers. Leave the original labels on all products, and read the label before using.
Always leave the light on when giving or taking medicines. Clean out the medicine cabinet periodically, and safely dispose of unneeded medicines when the illness for which they were prescribed is over. Pour contents down drain or toilet, and rinse container before discarding.
Turn on a light at night and put on your glasses to read the label when you need to take a medicine. If any questions arise, consult your physician. Never mix medicines and alcohol, and never take more than the prescribed amount of medicine. Never "borrow" a friend's medicine or take old medicines.
Tell your doctor what other medicines you are taking so you can avoid adverse drug interactions.
www.richarddorr.com Home Information
Wednesday, September 9, 2009
C.A.R. Financing Guide for California Home Buyers
Today’s market holds tremendous opportunities for first-time buyers and the REALTORS® dedicated to assisting them in their first home purchase. Housing affordability is at historic highs in many areas as low mortgage rates, government tax credits, and lower home prices have continued to make the goal of homeownership within reach for every California household--but they can’t do it alone. They need you, the California REALTOR®, with the skills and market knowledge to navigate through this often difficult process of buying a home. While, these transactions do take a little more effort and preparation on the part of the REALTOR® and the home buyer, there is no greater reward than getting that family into their first home.
The CALIFORNIA ASSOCIATION OF REALTORS® has developed this guide as an introduction to the programs currently available to potential California home buyers from local, state, and federal agencies. With this guide, you’ll learn the basics of working with these programs and some practical tips to help you avoid the common pitfalls. For those areas not represented in this document, you are encouraged to check with your local city or county government for details on programs specific to your area. Be sure to use this valuable information with your clients.
http://www.car.org/tools/smart/clients/Financing_Programs_Guide_v21.pdf
http://www.richarddorr.com/
www.twitter.com/rdsmartclick
Today’s market holds tremendous opportunities for first-time buyers and the REALTORS® dedicated to assisting them in their first home purchase. Housing affordability is at historic highs in many areas as low mortgage rates, government tax credits, and lower home prices have continued to make the goal of homeownership within reach for every California household--but they can’t do it alone. They need you, the California REALTOR®, with the skills and market knowledge to navigate through this often difficult process of buying a home. While, these transactions do take a little more effort and preparation on the part of the REALTOR® and the home buyer, there is no greater reward than getting that family into their first home.
The CALIFORNIA ASSOCIATION OF REALTORS® has developed this guide as an introduction to the programs currently available to potential California home buyers from local, state, and federal agencies. With this guide, you’ll learn the basics of working with these programs and some practical tips to help you avoid the common pitfalls. For those areas not represented in this document, you are encouraged to check with your local city or county government for details on programs specific to your area. Be sure to use this valuable information with your clients.
http://www.car.org/tools/smart/clients/Financing_Programs_Guide_v21.pdf
http://www.richarddorr.com/
www.twitter.com/rdsmartclick
Monday, August 31, 2009
Foreclosure Doesn't Happen Overnight!!
Are you at risk of foreclosure and losing your home?Foreclosure doesn't happen overnight
Haven't missed a house payment yet, but afraid you might?
Has your financial situation changed due to a mortgage payment increase, loss of job, divorce, medical expenses, increase in taxes or other reasons?
Is your credit card debt becoming unmanageable?
Are you using your credit cards to buy groceries?
Is it becoming difficult to pay all your monthly bills on time?
If it’s becoming harder to make your house payment each month:
Contact a HUD-approved Housing Counselor, or
Call Toll Free (800) 569-4287 to find a Housing Counselor near you.
Read our Tips for Avoiding Foreclosure.
Few people think they will lose their home, they think they have more time. Here's how it happens. Note: Timeline varies by state.
First month missed payment – your lender will contact you by letter or phone. A housing counselor can help.
Second month missed payment – your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind. A housing counselor can help.
Third month missed payment – after the third payment is missed, you will receive a letter from you lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a "Demand Letter" or "Notice to Accelerate". If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender. A housing counselor can still help.
Fourth month missed payment – now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full amount or worked our arrangements you will be referred to your lender's attorneys. You will incur all attorney fees as part of your delinquency. A housing counselor can still help you.
Sheriff's or Public Trustee's Sale – the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees.
Redemption Period – after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff's or Public Trustee's Sale.
Important: Stay in contact with your lender and get assistance as early as possible. All dates are estimated, and vary according to your state and your mortgage company.
www.richarddorr.com
Haven't missed a house payment yet, but afraid you might?
Has your financial situation changed due to a mortgage payment increase, loss of job, divorce, medical expenses, increase in taxes or other reasons?
Is your credit card debt becoming unmanageable?
Are you using your credit cards to buy groceries?
Is it becoming difficult to pay all your monthly bills on time?
If it’s becoming harder to make your house payment each month:
Contact a HUD-approved Housing Counselor, or
Call Toll Free (800) 569-4287 to find a Housing Counselor near you.
Read our Tips for Avoiding Foreclosure.
Few people think they will lose their home, they think they have more time. Here's how it happens. Note: Timeline varies by state.
First month missed payment – your lender will contact you by letter or phone. A housing counselor can help.
Second month missed payment – your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind. A housing counselor can help.
Third month missed payment – after the third payment is missed, you will receive a letter from you lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a "Demand Letter" or "Notice to Accelerate". If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender. A housing counselor can still help.
Fourth month missed payment – now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full amount or worked our arrangements you will be referred to your lender's attorneys. You will incur all attorney fees as part of your delinquency. A housing counselor can still help you.
Sheriff's or Public Trustee's Sale – the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees.
Redemption Period – after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff's or Public Trustee's Sale.
Important: Stay in contact with your lender and get assistance as early as possible. All dates are estimated, and vary according to your state and your mortgage company.
www.richarddorr.com
Friday, August 28, 2009
New's From CAR
C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about what to do if a mortgage is sold to another servicer.
What to do if your mortgage is sold to another lender
Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced. Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.
In the mortgage-industry, this is called a “transfer of servicing,” and is a common practice. Borrowers should not be concerned about these changes, as the majority of lenders transfer their servicing rights to loans. Generally, the selling of a mortgage loan from one lender to another is a smooth transition and does not impact the borrower. Every so often though, there is a misstep by either the loan buyer or the loan seller.
Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is required to receive a “goodbye” letter from their current servicers at least 15 days before their next payment is due. The letter must state the name, address, and telephone number of the new servicer; the date the old company will stop collecting payments; and the date the new company will start accepting them. Under the Helping Families Save Their Homes Act, signed by President Obama on May 20, the new owner of the loan—which may or may not be the servicer—also must notify the borrower of the transfer within 30 days, known as the “hello” letter.
The “hello” letter should outline the same information as the “goodbye” letter sent from the former loan servicing company. Borrowers should be cautious if they receive a “hello” letter without receiving a “goodbye” letter, as they may be the intended victim of a scam by someone who is hoping to unlawfully receive the monthly mortgage payments. Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred. If it hasn’t, authorities should be notified immediately.
In most cases, a mortgage payment sent to the old servicer automatically will be forwarded to the new servicer for a brief amount of time, typically 60 days. However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.
To read the full story, please click here: http://www.latimes.com/classified/realestate/news/la-fi-lew23-2009aug23,0,714106.story
www.richarddorr.com
This week’s C.A.R. Mortgage Update contains information about what to do if a mortgage is sold to another servicer.
What to do if your mortgage is sold to another lender
Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced. Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.
In the mortgage-industry, this is called a “transfer of servicing,” and is a common practice. Borrowers should not be concerned about these changes, as the majority of lenders transfer their servicing rights to loans. Generally, the selling of a mortgage loan from one lender to another is a smooth transition and does not impact the borrower. Every so often though, there is a misstep by either the loan buyer or the loan seller.
Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is required to receive a “goodbye” letter from their current servicers at least 15 days before their next payment is due. The letter must state the name, address, and telephone number of the new servicer; the date the old company will stop collecting payments; and the date the new company will start accepting them. Under the Helping Families Save Their Homes Act, signed by President Obama on May 20, the new owner of the loan—which may or may not be the servicer—also must notify the borrower of the transfer within 30 days, known as the “hello” letter.
The “hello” letter should outline the same information as the “goodbye” letter sent from the former loan servicing company. Borrowers should be cautious if they receive a “hello” letter without receiving a “goodbye” letter, as they may be the intended victim of a scam by someone who is hoping to unlawfully receive the monthly mortgage payments. Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred. If it hasn’t, authorities should be notified immediately.
In most cases, a mortgage payment sent to the old servicer automatically will be forwarded to the new servicer for a brief amount of time, typically 60 days. However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.
To read the full story, please click here: http://www.latimes.com/classified/realestate/news/la-fi-lew23-2009aug23,0,714106.story
www.richarddorr.com
Monday, August 17, 2009
Expanded Eligibility for Making Home Affordable
HUD SECRETARY DONOVAN ANNOUNCES EXPANDED ELIGIBILITY FOR MAKING HOME AFFORDABLE REFINANCINGAnnounces eligibility for borrowers up to 125% underwater in Las Vegas with Senate Majority Leader Harry Reid and Congresswoman Dina Titus
WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage. Under authorization provided by the Federal Housing Finance Agency, borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year.
Secretary Donovan made the announcement while touring a neighborhood in Las Vegas with Senate Majority Leader Harry Reid (D-NV) and Congresswoman Dina Titus. Las Vegas leads the nation in foreclosures and approximately 67 percent of the current mortgage holders have mortgages that are higher than the worth of their homes.
"I am here in Las Vegas because it is ground zero of the foreclosure crisis," Secretary Donovan said. "I am pleased to join Senator Reid and Congresswoman Titus to make this announcement today, which I believe will make a critical difference in our ability to help many more Americans, particularly those here in Nevada, to stay in their homes. The president's Making Home Affordable plan is already helping far more families than any previous foreclosure initiative and with today's announcement we will extend its reach still further."
"I am pleased Secretary Donovan accepted my invitation to come to Nevada and see firsthand the challenges homeowners here are facing," Senator Reid said. "His announcement that the loan-to-value requirement for the Administration's refinance program has been raised to 125 percent is good news for Nevadans fighting to stay in their homes. The neighborhood we visited today represents the hardships caused by the housing crisis and the hope that is being restored through the neighborhood stabilization program and the Home Affordable refinance program."
"I am pleased to welcome Secretary Donovan to Las Vegas and thank him for coming. This is an opportunity to show him firsthand the magnitude of the foreclosure crisis in Southern Nevada," Congresswoman Titus said. "His announcement that the Making Home Affordable program will be expanded to help those further underwater, something I have advocated for, is welcome news that will help thousands of Nevadans stay in their home. I will continue working with Senator Reid, Secretary Donovan, and the rest of the Administration to find more ways to help the hardest hit areas like Southern Nevada, as every new foreclosure prolongs the housing crisis and hampers our country's ability to move out of the current recession."
"This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market," said Treasury Secretary Tim Geithner. "By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."
Currently, only those borrowers whose first mortgage does not exceed 105 percent of the current market value of the property are eligible for the Obama Administration's Home Affordable Refinance Program. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Today's announcement will allow more homeowners to become eligible for the program, by increasing the eligibility to 125 percent.
Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. In just a few months, more than 200,000 borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers who may be eligible.
Donovan toured a neighborhood that has experienced several foreclosures in recent years, negatively impacting the property values of surrounding homes. The neighborhood has been targeted for Clark County's Neighborhood Stabilization Program, which will use funds to purchase and rehab foreclosed homes, provide downpayment and closing cost assistance to those purchasing foreclosed homes, and provide housing counseling to potential buyers.
Donovan also announced his plans to deploy HUD Foreclosure Rapid Response Teams to assess the areas hardest hit by foreclosure, starting in Las Vegas. The Las Vegas team will consist of two senior-level HUD Field staff with experience in Single Family Housing and in community outreach. Their task in the next two weeks will be to determine the needs in Nevada and in surrounding areas based on delinquency rate data at the zip code level, as well as listening sessions with local stakeholders such as housing counseling agencies, lenders, and members of the public. Based on the Foreclosure Rapid Response Team's assessment, HUD will commit two full-time employees to implement their recommendations. Additionally, HUD plans to deploy two Fair Housing equal opportunity specialists to the Las Vegas HUD office, which will provide the opportunity to conduct outreach and education locally, receive discrimination complaints and more readily conduct full investigations.
HUD receives about 100 complaints of housing discrimination every year from residents of Nevada, well over double what was received as recently as 2005. With a local presence, HUD's Fair Housing & Equal Opportunity office should make it easier for Nevada residents to obtain justice and relief, to educate housing consumers about predatory lending, and to conduct program compliance and monitoring in the over 3000 public housing units and over 8500 Section 8 vouchers.
### www.pre4closures.net
WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage. Under authorization provided by the Federal Housing Finance Agency, borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year.
Secretary Donovan made the announcement while touring a neighborhood in Las Vegas with Senate Majority Leader Harry Reid (D-NV) and Congresswoman Dina Titus. Las Vegas leads the nation in foreclosures and approximately 67 percent of the current mortgage holders have mortgages that are higher than the worth of their homes.
"I am here in Las Vegas because it is ground zero of the foreclosure crisis," Secretary Donovan said. "I am pleased to join Senator Reid and Congresswoman Titus to make this announcement today, which I believe will make a critical difference in our ability to help many more Americans, particularly those here in Nevada, to stay in their homes. The president's Making Home Affordable plan is already helping far more families than any previous foreclosure initiative and with today's announcement we will extend its reach still further."
"I am pleased Secretary Donovan accepted my invitation to come to Nevada and see firsthand the challenges homeowners here are facing," Senator Reid said. "His announcement that the loan-to-value requirement for the Administration's refinance program has been raised to 125 percent is good news for Nevadans fighting to stay in their homes. The neighborhood we visited today represents the hardships caused by the housing crisis and the hope that is being restored through the neighborhood stabilization program and the Home Affordable refinance program."
"I am pleased to welcome Secretary Donovan to Las Vegas and thank him for coming. This is an opportunity to show him firsthand the magnitude of the foreclosure crisis in Southern Nevada," Congresswoman Titus said. "His announcement that the Making Home Affordable program will be expanded to help those further underwater, something I have advocated for, is welcome news that will help thousands of Nevadans stay in their home. I will continue working with Senator Reid, Secretary Donovan, and the rest of the Administration to find more ways to help the hardest hit areas like Southern Nevada, as every new foreclosure prolongs the housing crisis and hampers our country's ability to move out of the current recession."
"This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market," said Treasury Secretary Tim Geithner. "By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."
Currently, only those borrowers whose first mortgage does not exceed 105 percent of the current market value of the property are eligible for the Obama Administration's Home Affordable Refinance Program. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Today's announcement will allow more homeowners to become eligible for the program, by increasing the eligibility to 125 percent.
Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. In just a few months, more than 200,000 borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers who may be eligible.
Donovan toured a neighborhood that has experienced several foreclosures in recent years, negatively impacting the property values of surrounding homes. The neighborhood has been targeted for Clark County's Neighborhood Stabilization Program, which will use funds to purchase and rehab foreclosed homes, provide downpayment and closing cost assistance to those purchasing foreclosed homes, and provide housing counseling to potential buyers.
Donovan also announced his plans to deploy HUD Foreclosure Rapid Response Teams to assess the areas hardest hit by foreclosure, starting in Las Vegas. The Las Vegas team will consist of two senior-level HUD Field staff with experience in Single Family Housing and in community outreach. Their task in the next two weeks will be to determine the needs in Nevada and in surrounding areas based on delinquency rate data at the zip code level, as well as listening sessions with local stakeholders such as housing counseling agencies, lenders, and members of the public. Based on the Foreclosure Rapid Response Team's assessment, HUD will commit two full-time employees to implement their recommendations. Additionally, HUD plans to deploy two Fair Housing equal opportunity specialists to the Las Vegas HUD office, which will provide the opportunity to conduct outreach and education locally, receive discrimination complaints and more readily conduct full investigations.
HUD receives about 100 complaints of housing discrimination every year from residents of Nevada, well over double what was received as recently as 2005. With a local presence, HUD's Fair Housing & Equal Opportunity office should make it easier for Nevada residents to obtain justice and relief, to educate housing consumers about predatory lending, and to conduct program compliance and monitoring in the over 3000 public housing units and over 8500 Section 8 vouchers.
### www.pre4closures.net
Thursday, August 13, 2009
Homes Could Be Rented Under Proposal
Administration Weighs More Foreclosure Aid
Homes Could Be Rented Under Proposal
By Renae Merle
Washington Post Staff Writer Friday, July 17, 2009
A top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure.
If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts.
"It's certainly an idea we're thinking about," Herbert M. Allison, assistant secretary for financial stability, told the Senate Banking Committee. A Treasury spokeswoman said that the proposal was being studied but that no decision had been made.
"This could make sense as a last resort for troubled homeowners who would otherwise lose their homes and find themselves with nowhere to live," said Sen. Charles E. Schumer (D-N.Y.).
Freddie Mac, the mortgage financing company, launched a similar program in March, allowing homeowners the choice to stay in their homes after foreclosures as renters. But the program has not attracted many participants, said Brad German, the company's spokesman. Most former owners instead choose to accept money to voluntarily vacate under a program known as cash-for-keys, he said.
The new proposal comes as increasing numbers of borrowers are facing foreclosure as they lose their jobs and fall behind on payments. RealtyTrac reported that foreclosure filings, which can range from default notices to bank repossessions, were up 15 percent during the first half of the year compared with the corresponding period in 2008.
The administration is considering initiatives to help unemployed workers get help with their mortgages, said William Apgar, senior adviser for mortgage finance at the Department of Housing and Urban Development. "The current very high level of unemployment is making the already difficult task of helping families struggling to meet their mortgage payments even harder," he said.
Under the federal program known as Making Home Affordable, lenders are paid to lower borrowers' mortgage payments. About 160,000 loans have been modified into lower-cost loans so far. The administration has said the federal effort has already been more successful than previous programs. But officials are also prodding lenders to hire more staff and better train employees.
It is "disgraceful" that borrowers are still struggling to get help more than two years into the housing crisis, said Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Committee on Banking, Housing and Urban Affairs. "Why am I still reading about lost files, understaffed and undertrained servicers, and hours spent on hold?"
www.richarddorr.com
Homes Could Be Rented Under Proposal
By Renae Merle
Washington Post Staff Writer Friday, July 17, 2009
A top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure.
If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts.
"It's certainly an idea we're thinking about," Herbert M. Allison, assistant secretary for financial stability, told the Senate Banking Committee. A Treasury spokeswoman said that the proposal was being studied but that no decision had been made.
"This could make sense as a last resort for troubled homeowners who would otherwise lose their homes and find themselves with nowhere to live," said Sen. Charles E. Schumer (D-N.Y.).
Freddie Mac, the mortgage financing company, launched a similar program in March, allowing homeowners the choice to stay in their homes after foreclosures as renters. But the program has not attracted many participants, said Brad German, the company's spokesman. Most former owners instead choose to accept money to voluntarily vacate under a program known as cash-for-keys, he said.
The new proposal comes as increasing numbers of borrowers are facing foreclosure as they lose their jobs and fall behind on payments. RealtyTrac reported that foreclosure filings, which can range from default notices to bank repossessions, were up 15 percent during the first half of the year compared with the corresponding period in 2008.
The administration is considering initiatives to help unemployed workers get help with their mortgages, said William Apgar, senior adviser for mortgage finance at the Department of Housing and Urban Development. "The current very high level of unemployment is making the already difficult task of helping families struggling to meet their mortgage payments even harder," he said.
Under the federal program known as Making Home Affordable, lenders are paid to lower borrowers' mortgage payments. About 160,000 loans have been modified into lower-cost loans so far. The administration has said the federal effort has already been more successful than previous programs. But officials are also prodding lenders to hire more staff and better train employees.
It is "disgraceful" that borrowers are still struggling to get help more than two years into the housing crisis, said Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Committee on Banking, Housing and Urban Affairs. "Why am I still reading about lost files, understaffed and undertrained servicers, and hours spent on hold?"
www.richarddorr.com
Homes Could Be Rented Under Proposal
Administration Weighs More Foreclosure Aid
Homes Could Be Rented Under Proposal
By Renae Merle
Washington Post Staff Writer Friday, July 17, 2009
A top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure.
If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts.
"It's certainly an idea we're thinking about," Herbert M. Allison, assistant secretary for financial stability, told the Senate Banking Committee. A Treasury spokeswoman said that the proposal was being studied but that no decision had been made.
"This could make sense as a last resort for troubled homeowners who would otherwise lose their homes and find themselves with nowhere to live," said Sen. Charles E. Schumer (D-N.Y.).
Freddie Mac, the mortgage financing company, launched a similar program in March, allowing homeowners the choice to stay in their homes after foreclosures as renters. But the program has not attracted many participants, said Brad German, the company's spokesman. Most former owners instead choose to accept money to voluntarily vacate under a program known as cash-for-keys, he said.
The new proposal comes as increasing numbers of borrowers are facing foreclosure as they lose their jobs and fall behind on payments. RealtyTrac reported that foreclosure filings, which can range from default notices to bank repossessions, were up 15 percent during the first half of the year compared with the corresponding period in 2008.
The administration is considering initiatives to help unemployed workers get help with their mortgages, said William Apgar, senior adviser for mortgage finance at the Department of Housing and Urban Development. "The current very high level of unemployment is making the already difficult task of helping families struggling to meet their mortgage payments even harder," he said.
Under the federal program known as Making Home Affordable, lenders are paid to lower borrowers' mortgage payments. About 160,000 loans have been modified into lower-cost loans so far. The administration has said the federal effort has already been more successful than previous programs. But officials are also prodding lenders to hire more staff and better train employees.
It is "disgraceful" that borrowers are still struggling to get help more than two years into the housing crisis, said Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Committee on Banking, Housing and Urban Affairs. "Why am I still reading about lost files, understaffed and undertrained servicers, and hours spent on hold?"
www.richarddorr.com
Homes Could Be Rented Under Proposal
By Renae Merle
Washington Post Staff Writer Friday, July 17, 2009
A top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure.
If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts.
"It's certainly an idea we're thinking about," Herbert M. Allison, assistant secretary for financial stability, told the Senate Banking Committee. A Treasury spokeswoman said that the proposal was being studied but that no decision had been made.
"This could make sense as a last resort for troubled homeowners who would otherwise lose their homes and find themselves with nowhere to live," said Sen. Charles E. Schumer (D-N.Y.).
Freddie Mac, the mortgage financing company, launched a similar program in March, allowing homeowners the choice to stay in their homes after foreclosures as renters. But the program has not attracted many participants, said Brad German, the company's spokesman. Most former owners instead choose to accept money to voluntarily vacate under a program known as cash-for-keys, he said.
The new proposal comes as increasing numbers of borrowers are facing foreclosure as they lose their jobs and fall behind on payments. RealtyTrac reported that foreclosure filings, which can range from default notices to bank repossessions, were up 15 percent during the first half of the year compared with the corresponding period in 2008.
The administration is considering initiatives to help unemployed workers get help with their mortgages, said William Apgar, senior adviser for mortgage finance at the Department of Housing and Urban Development. "The current very high level of unemployment is making the already difficult task of helping families struggling to meet their mortgage payments even harder," he said.
Under the federal program known as Making Home Affordable, lenders are paid to lower borrowers' mortgage payments. About 160,000 loans have been modified into lower-cost loans so far. The administration has said the federal effort has already been more successful than previous programs. But officials are also prodding lenders to hire more staff and better train employees.
It is "disgraceful" that borrowers are still struggling to get help more than two years into the housing crisis, said Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Committee on Banking, Housing and Urban Affairs. "Why am I still reading about lost files, understaffed and undertrained servicers, and hours spent on hold?"
www.richarddorr.com
Wednesday, August 12, 2009
Foreclosure Aid
Administration Weighs More Foreclosure Aid
Homes Could Be Rented Under Proposal
By Renae Merle
Washington Post Staff Writer Friday, July 17, 2009
A top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure.
If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts.
"It's certainly an idea we're thinking about," Herbert M. Allison, assistant secretary for financial stability, told the Senate Banking Committee. A Treasury spokeswoman said that the proposal was being studied but that no decision had been made.
"This could make sense as a last resort for troubled homeowners who would otherwise lose their homes and find themselves with nowhere to live," said Sen. Charles E. Schumer (D-N.Y.).
Freddie Mac, the mortgage financing company, launched a similar program in March, allowing homeowners the choice to stay in their homes after foreclosures as renters. But the program has not attracted many participants, said Brad German, the company's spokesman. Most former owners instead choose to accept money to voluntarily vacate under a program known as cash-for-keys, he said.
The new proposal comes as increasing numbers of borrowers are facing foreclosure as they lose their jobs and fall behind on payments. RealtyTrac reported that foreclosure filings, which can range from default notices to bank repossessions, were up 15 percent during the first half of the year compared with the corresponding period in 2008.
The administration is considering initiatives to help unemployed workers get help with their mortgages, said William Apgar, senior adviser for mortgage finance at the Department of Housing and Urban Development. "The current very high level of unemployment is making the already difficult task of helping families struggling to meet their mortgage payments even harder," he said.
Under the federal program known as Making Home Affordable, lenders are paid to lower borrowers' mortgage payments. About 160,000 loans have been modified into lower-cost loans so far. The administration has said the federal effort has already been more successful than previous programs. But officials are also prodding lenders to hire more staff and better train employees.
It is "disgraceful" that borrowers are still struggling to get help more than two years into the housing crisis, said Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Committee on Banking, Housing and Urban Affairs. "Why am I still reading about lost files, understaffed and undertrained servicers, and hours spent on hold?"
www.pre4closures.net
Homes Could Be Rented Under Proposal
By Renae Merle
Washington Post Staff Writer Friday, July 17, 2009
A top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure.
If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts.
"It's certainly an idea we're thinking about," Herbert M. Allison, assistant secretary for financial stability, told the Senate Banking Committee. A Treasury spokeswoman said that the proposal was being studied but that no decision had been made.
"This could make sense as a last resort for troubled homeowners who would otherwise lose their homes and find themselves with nowhere to live," said Sen. Charles E. Schumer (D-N.Y.).
Freddie Mac, the mortgage financing company, launched a similar program in March, allowing homeowners the choice to stay in their homes after foreclosures as renters. But the program has not attracted many participants, said Brad German, the company's spokesman. Most former owners instead choose to accept money to voluntarily vacate under a program known as cash-for-keys, he said.
The new proposal comes as increasing numbers of borrowers are facing foreclosure as they lose their jobs and fall behind on payments. RealtyTrac reported that foreclosure filings, which can range from default notices to bank repossessions, were up 15 percent during the first half of the year compared with the corresponding period in 2008.
The administration is considering initiatives to help unemployed workers get help with their mortgages, said William Apgar, senior adviser for mortgage finance at the Department of Housing and Urban Development. "The current very high level of unemployment is making the already difficult task of helping families struggling to meet their mortgage payments even harder," he said.
Under the federal program known as Making Home Affordable, lenders are paid to lower borrowers' mortgage payments. About 160,000 loans have been modified into lower-cost loans so far. The administration has said the federal effort has already been more successful than previous programs. But officials are also prodding lenders to hire more staff and better train employees.
It is "disgraceful" that borrowers are still struggling to get help more than two years into the housing crisis, said Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Committee on Banking, Housing and Urban Affairs. "Why am I still reading about lost files, understaffed and undertrained servicers, and hours spent on hold?"
www.pre4closures.net
Tuesday, August 11, 2009
Short Sales Information
Obama Administration Announces Financial
Incentives and Uniform Process for Short Sales
National Association of REALTORS® Government Affairs Division 500 New Jersey Avenue, NW, Washington DC, 20001
Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who are unable to retain their home under the Making Home Affordable Loan Modification Program, the servicer may consider a short sale or, if that is not successful, a deed-in-lieu of foreclosure. Participating servicers must comply with program requirements so long as they do not conflict with contractual agreements with investors.
Late July is the Treasury Department’s current target for issuing guidelines and forms necessary to start the program.
Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deedin-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.
Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.
No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP. Program Expiration. The program is in effect through 2012.
Deed-in-Lieu of Foreclosure Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).
REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
www.richarddorr.com
Incentives and Uniform Process for Short Sales
National Association of REALTORS® Government Affairs Division 500 New Jersey Avenue, NW, Washington DC, 20001
Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who are unable to retain their home under the Making Home Affordable Loan Modification Program, the servicer may consider a short sale or, if that is not successful, a deed-in-lieu of foreclosure. Participating servicers must comply with program requirements so long as they do not conflict with contractual agreements with investors.
Late July is the Treasury Department’s current target for issuing guidelines and forms necessary to start the program.
Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deedin-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.
Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.
No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP. Program Expiration. The program is in effect through 2012.
Deed-in-Lieu of Foreclosure Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).
REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
www.richarddorr.com
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