Real Estate Ramblings from Rockland NY

Get Tax Credit for Energy Efficiency

Fri, 19 Mar 2010 09:30:00 GMT

Hurry, Hurry, Hurry! Times running out for this great tax credit opportunity -Take advantage of improved tax credits available for a number of energy-efficient home improvements. Find a professional remodeler in your neighborhood at www.nahb.org/remodel to get excellent advice – and your assurance of a project well done.

The Existing Home Retrofit Tax Credit (Tax Code Section 25C): Tax credits are available at 30 percent of the cost, up to a $1,500 lifetime limit, for installation in 2009 & 2010 (for existing homes only) of these products:

Building envelope components (Installation costs not included):

Qualified energy products (Installation costs may be included):

Electric heat pump water heaters that yield an energy factor of at least 2.0 in the standard Department of Energy test procedure.
Electric heat pumps and central air conditioners that achieve the highest efficiency tier established by the Consortium for Energy Efficiency as of Jan. 1, 2009.
Natural gas, propane or oil water heaters with an energy factor of at least .82 or thermal efficiency of at least 90 percent
Biomass burning stoves with a thermal efficiency rating of at least 75 percent as measured using a lower heating value
Natural gas and propane furnaces that achieve an annual fuel utilization efficiency rate of not less than 95
Natural gas, propane, or oil water boilers and oil furnaces that achieve an annual fuel utilization rate of not less than 90
Advanced main air conditioning fans with annual electricity use of no more than 2 percent of the total annual energy use of the furnace

The Wind, Solar, Geothermal and Fuel Cell Tax Credit (Tax Code Section 25D): Tax credits are available at 30 percent of the cost, with no cap through 2016, for existing homes and new construction, for:

The energy-efficiency home products must be “placed in service” between Jan. 1, 2009 and Dec. 31, 2010. The credits are only valid for improvements made to the taxpayer's principal residence, except for qualified geothermal, solar, wind property, which can be installed on any home used as a residence by the taxpayer.

Home owners can claim the 25C and 25D credits on Form 5695 when they file their income tax returns. Check with your tax professional to ensure correct application of the energy-efficiency tax credit. Retain all receipts as well as records that include:

Name and address of manufacturer
Identification of the class of eligible building envelope component
Make, model number and any other property identifiers
A statement that the component is eligible for the credit (may include U factor, class of window or door, etc.)

For a short, one-page description of the energy efficiency tax credits, download this fact sheet.

IRS Clarifies What Qualifies for Home Owner Energy Tax Credit

The Internal Revenue Service has published new guidance on Internal Revenue Code Section 25C, which allows up to a $1,500 tax credit for home owners who install energy-efficient windows, insulation and other qualifying products. The tax credit is equal to 30 percent of the qualified energy efficiency expenses paid by the home owner, but it is limited to $1,500 for improvements made during 2009 and 2010.

Notice 2009-53 explains the requirements for home owners to claim the 25C credit and provides detailed technical information regarding what improvements can qualify. Home owners can claim the credit only for improvements made to an existing home. However, NAHB has learned from the IRS that tax credit-qualified improvements installed in an addition to an existing home also qualify for the 25C program.

Among the highlights:

Tax credit eligible products must be reasonably expected to remain in use for at least five years. One method taxpayers can rely on to satisfy this requirement is to purchase products from a manufacturer who offers a warranty lasting at least two years at no additional cost.
Not all Energy Star-rated products that are installed qualify for the tax credit. The Energy Star Web site includes a detailed listing of products that qualify for the section 25C program.
The credit excludes installation costs for building envelope components — such as insulation and windows. In order for the home owner to claim the credit, the remodeler must provide an itemized breakout of the cost of these installed products, minus any labor or installation charges.

Also of importance, Notice 2009-53 provides the set of transition rules for qualified products installed before June 1, 2009. For these installations, taxpayers can claim for tax credit purposes the installation of property that meets less stringent energy efficiency requirements.

In particular, taxpayers can claim the credit for installation of windows and skylights that meet Energy Star requirements, requirements listed under prior IRS Notice 2006-53 or manufacturers’ certifications for 25C made under IRS Notice 2006-53. For installations on or after June 1, the requirements listed in Notice 2009-53 and described above are binding.

NAHB Teleconference on Claiming Energy-Efficiency Tax Credits

Newly expanded federal tax credits for energy efficiency are providing consumers with added incentives for upgrading their homes. Homeowners now can claim up to $1,500 in tax credits for remodeling their principal residence to reduce energy consumption through the enhanced Existing Home Retrofit (25C) tax credit. During a media teleconference next week, NAHB’s Director of tax issues discussed how to take advantage of the credit, while three professional remodelers from around the country provided examples of the types of projects that may qualify, such as adding insulation, replacing doors and windows, and updating heating and cooling systems. The panelists also provided guidance on selecting a qualified remodeler and certifying home remodelers under the National Green Building Standard, which is the only national standard to certify green home remodeling and renovation projects.

Learn more about how to plan a remodel and hire a professional remodeler at www.nahb.org/remodel.

Use this chart as quick reference for what product specifications may qualify for the tax credit.

SUMMARY OF TAX CREDITS FOR HOMEOWNERS

Product Category	Product Type	Tax Credit Specification	Tax Credit	Notes
Windows & Doors	Exterior Windows and Skylights	U factor <= 0.30 SHGC <= 0.30	30 percent of cost, up to $1,500²	Not all ENERGY STAR labeled windows and skylights qualify for tax credit.
	Storm Windows	Meets IECC¹ in combination with the exterior window over which it is installed, for the applicable climate zone	30 percent of cost, up to $1,500²	Manufacturer Certification Statement³ will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)⁴ that a product may be combined with to be eligible in specific climate zones.
	Exterior Doors	U factor <= 0.30 SHGC <= 0.30	30 percent of cost, up to $1,500²	Not all ENERGY STAR doors will qualify.
	Storm Doors	In combination with a wood door assigned a default U-factor by the IECC¹, and does not exceed the default U-factor requirement assigned to such combination by the IECC	30 percent of cost, up to $1,500²
Roofing	Metal Roofs, Asphalt Roofs	ENERGY STAR qualified	30 percent of cost, up to $1,500²	All ENERGY STAR metal and asphalt roofs qualify for the tax credit. Must be expected to last five years OR have a two-year warranty.
Insulation	Insulation	Meets 2009 IECC & Amendments	30 percent of cost, up to $1,500²	For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, insulated siding does not qualify). Must be expected to last five years OR have a two-year warranty
HVAC	Central A/C	Split Systems: EER >=13 SEER >= 16 Package systems: EER >= 12 SEER >= 14	30 percent of cost, up to $1,500²	For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on Air Conditioners, then in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and "Residential Tier 2" for CAC Package Systems and ASHPs. Note — not all ENERGY STAR products will qualify for the tax credit.
	Air Source Heat Pumps	Split Systems: HSPF >= 8.5 EER >= 12.5 SEER >= 15 Package systems: HSPF >= 8 EER >= 12 SEER >= 14	30 percent of cost, up to $1,500²
	Natural Gas or Propane Furnace	AFUE >= 95	30 percent of cost, up to $1,500²	For a list of qualifying products go to the Gas Appliance Manufacturing Association Not all ENERGY STAR products will qualify for the tax credit.
	Oil Furnace	AFUE >= 90	30 percent of cost, up to $1,500²
	Gas, Propane, or Oil Hot Water Boiler	AFUE >= 90	30 percent of cost, up to $1,500²
	Advanced Main Air Circulating Fan	No more than two percent of furnace total energy use	30 percent of cost, up to $1,500²
Water Heaters	Gas, Oil, Propane Water Heater	Energy Factor >= 0.82 or a thermal efficiency of at least 90 percent.	30 percent of cost, up to $1,500²	Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify. All ENERGY STAR gas tankless water heaters will qualify. For a partial list of qualifying products go to the Air Conditioning, Heating, and refrigeration Institute (AHRI)
Water Heaters	Electric Heat Pump Water Heater	Same criteria as ENERGY STAR: Energy Factor >= 2.0	30 percent of cost, up to $1,500²	All ENERGY STAR electric heat pump water heaters qualify for the tax credit.
Biomass Stove	Biomass Stove	Stove which burns biomass fuel⁵ to heat a home or heat water. Thermal efficiency rating of at least 75 percent as measured using a lower heating value.	30 percent of cost, up to $1,500²
Geo-Thermal Heat Pump	Geo-Thermal Heat Pump	Same criteria as ENERGY STAR: Closed Loop: EER >= 14.1 COP >= 3.3 Open Loop: EER >= 16.2 COP >= 3.6 Direct Expansion: EER >= 15 COP >= 3.5	30 percent of the cost	All ENERGY STAR geo-thermal heat pumps qualify for the tax credit. Use IRS Form 5695 Must be “placed into service” before Dec. 31, 2016.
Solar Energy Systems	Solar Water Heating	At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. The system must be certified by the Solar Rating and Certification Corporation (SRCC).	30 percent of cost	All ENERGY STAR solar water heaters qualify for the tax credit. Use IRS Form 5695 Must be placed in service before December 31, 2016.
Solar Energy Systems	Photovoltaic Systems	Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.	30 percent of cost	Use IRS Form 5695 Must be placed in service before Dec. 31, 2016.
Small Wind Energy Systems	Residential Small Wind Energy Systems		30 percent of cost	Use IRS Form 5695 Must be placed in service before Dec. 31, 2016.
Fuel Cells	Residential Fuel Cell and microturbine system	Efficiency of at least 30 percent and must have a capacity of at least 0.5 kW.	30 percent of the cost, up to $1500 per .5 kW of power capacity	Use IRS Form 5695 Must be placed in service before Dec. 31, 2016.

¹Either the 2001 Supplement of the 2000 International Energy Conservation Code or the 2004 Supplement of the 2003 International Energy Conservation Code.

²Subject to a $1,500 maximum per homeowner for all improvements combined.

³A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

⁴Additional information on exterior window features may be viewed at Anatomy of an Energy Efficient Window.

⁵Biomass Fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

The IRS defines “placed in service” as when the property is ready and available for use.

This information comes from Energy Star, for more information visit the Energy Star Web site at www.energystar.gov/taxcredits.

To learn more about remodeling visit NAHB Remodelers at www.nahb.org/remodel.

Difficult Homes to Price and Sell

Fri, 19 Mar 2010 03:00:00 GMT

Daily Real Estate News | March 18, 2010 | Share

Oddities: Hard to Appraise, Hard to Finance
Homes that are unusual because of design or building materials are a challenge to finance, bankers says.

Lenders are paying stricter attention to home values than they did several years ago. "It's simply a fact of the mortgage lending environment in general that determining value on a property is more important than ever today," said Brad Blackwell, a national sales manager for Wells Fargo.

Environmentally friendly houses, custom-designed by their owners, are getting caught in the valuation retrenchment because of the lack of comparables. A house in Colorado made out of discarded tires compressed into building blocks is a good example. With no other houses quite like it in the state, assigning a value is a challenge.

And new rules from Fannie Mae and Freddie Mac, which are intended to reinforce the arm's-length distance between those assigning an appraisal and those who conduct them, complicate relationships some mortgage brokers have forged with appraisers who have familiarity with valuations for odd houses.

Source: The Wall Street Journal, Anton Troianovski And Nick Timiraos (03/18/2010)

Being served a foreclosure notice:

Mon, 01 Mar 2010 04:00:00 GMT

Mortgage holders must realize it’s not the end of the earth.

When the people we know of as friends and neighbors find they have mortgage problems, their first shock is the foreclosure service. They go to the front door one morning to pick up the daily paper, only to be greeted by a process server handing them a foreclosure notice. This is the first of many instances when these people will discover they have been let down by the ongoing failure of our federal and state governments. Because government has failed to force financial institutions to do their part and resolve our national housing instability, every well written summons and complaint seeking the foreclosure of a mortgage will result in a forced, judicial sale of a house. So is there life after being served notice? There can be.

Every mortgage simply says that if the borrower does not make the monthly payment, keep up homeowners insurance and avoid violations and a number of other conditions, they will be sued in State or Federal Court. Eventually, this is the first act that leads to a foreclosure sale. Sadly, the homebuyer will hear these words at the closing table while signing a mass of documents but will concentrate on anything but the potential chaos of these results.

What’s gone wrong for foreclosed homeowners

The numbers speak for themselves: mortgage loan defaults do not result in an equally significant number of sustainable loan modifications. This fact was pointed out last year by a group of 15 Attorneys General, including our New York State Banking Superintendent. The fifteen signed and sent a letter to the Comptroller of the Currency and the Director of Office of Thrift Supervision stating "the majority of loan modifications in the past year have not led to meaningful payment relief to homeowners. We are concerned that either the institutions supervised by the OCC and OTS have thus far failed to offer homeowners sustainable loan modifications, in contravention to guidance issued by the federal banking agencies...."

Now, a year later, this State Foreclosure Prevention Working Group issued its Data Report No.4, January 2010, showing that the number of homeowners in default continues to grow, not lessen. Efforts to mitigate loss are hopelessly backlogged, principal reductions are a rare bird indeed; and that our lenders and banks have "not succeeded in turning the corner to reduce the high levels of foreclosure." In her February 11, 2010 Newsday article, Ellen Yan lays bare the shocking facts that the "number of newly started foreclosure cases on Long Island went up last month." On a hopeful note, she adds that there are some positive trends now forthcoming and reports on one such successful loan modification for a Nassau county homeowner, even after the lender served a foreclosure papers.

Ms Yan described in an earlier article that "state law will require settlement conferences for all borrowers in the foreclosure process". She reported how court officials are "hoping to keep these people, more of them, in their homes." But due to reticence, ignorance of their options or merely the apathy of hopelessness, many people who have come face to face with the process server feel no hope in reaching out for guidance, counsel and assistance. This in spite of the fact that each foreclosure summons is required to provide phone numbers for counseling agencies, and each court house provides a Clerk's Office for homeowners to get information on their options.

What to do when foreclosure service strikes

There are several positive success oriented strategies homeowners in foreclosure can enact. Focus on the fact that homes can be saved and loans can be modified or at the very least a short sale can be worked out saving the owners from foreclosure. I regularly see homeowners who were served with a foreclosure summons and need counsel and defense to save their home. When we meet, I explain their options, and point them in the right directon of a good attorney to help. They often come away with the confidence that there is a process for solution. They also understand that if you do nothing you will get nothing.

The potential to succeed is limitless. Meeting a process server can feel as if the weight of the world is crashing down. But don’t just hang your head and start cleaning out the closets. Take action! Look to mentors, neighbors and professionals who have had experience in this area. And most of all, take heart. The statistics are overwhelming--- one out of seven borrowers are behind on their mortgage, according to the Mortgage Bankers Association 3rd Quarter 2009 survey. This clearly means that you are not alone.

But it also means that someone won't magically appear in your living room to describe what actions you need to consider. To succeed, it means that you must begin the process of rebuilding your financial confidence. When you do, you will be assured of meeting someone who has had a similar problem but has done something to start a process that will fight the foreclosure action, slow it down to the point of engaging your lender in Court at a foreclosure settlement hearing, submitting for a loan modification or if necessary, taking all the other actions legally yours to protect against a foreclosure sale.

The past three years have seen enormous actions from our financial institutions to engage this unheard-of concept of banks giving borrowers a second chance. And there are more to come. On the horizon, there are steps now in process to implement a Treasury Department plan to modify eligible borrowers who have a second mortgage lien. These ideas are bold and innovative and require much on the part of the lender, but also on the part of the homeowner. Remember, foreclosure service isn’t the end of the earth. It’s a new beginning for the many who head in the direction of a solution.

As a certified distressed property specialist, I am able to provide you with the information you'll need to go forward. There is no financial obligation to me for this information at any time.

The week in review

Sun, 28 Feb 2010 19:42:00 GMT

Last Week; wasn't a good one for the economic bulls, and particularly those that think the housing markets are making a turn. Jan existing home sales were expected to have increased about 1.0%, they tanked to a decline of 7.7% with the inventory of unsold homes increasing to 7.8 month from 7.2 months in Dec. New home sales in Jan really fell, with the forecast of an increase of 3.7% over a weak month in Dec, sales plunged 11.2%. Bernanke testified in Congress last week, it went OK and markets only took out of it that once again Bernanke reiterated interest rates would stay low for a lot longer. We are hearing that it will likely be four more meetings before the FF rate is increased, that takes to out to the latter part of this year. It all depends on the economy; we still think the foundations of the present optimism are too optimistic are too excessive, but that is that famous wall of worry it takes. Not only housing data; consumer confidence in Feb declined substantially; the Conference Board's index of confidence dropped over 10 points (20%) from Jan to Feb to a low read of 46.0; the U. of Michigan consumer index didn't slide at all and remained unchanged on the month------more to be confused about. Although the week was punctuated with very soft economic data, the equity markets held well with very little change in the key indexes. The interest rate markets improved; the 10 yr note yield fell 16 basis points to 3.62% and 30 yr mortgage rates declined about 8 to 10 basis points.

Courtesy of Think Big Work Small

This Week; we believe will be one of the most important weeks in the last few months for the financial markets. Very key economic data this week; but none more important than Friday's Feb employment data. The key data points this week are personal income and spending for Jan, both ISM manufacturing and services reports, Feb auto and truck sales, and the Fed's Beige Book release. What will make this somewhat of a watershed week, and the relevance of the data releases, is what occurred last week with the very deep decline in consumer confidence. Markets are translating the collapse in confidence to more job losses and no improvement in wealth. We will add that many consumers that have managed to hold on, and hoped to wait the recession out, are now beginning to retreat as the end is slipping farther out for many that so far have "weathered" the economic recession. The early estimates for the Feb jobs report are for just 20K jobs lost and the unemployment rate to increase to 9.8% from 9.7% in Jan. Early this week we are not expecting any additional improvement in the bond market, and equity markets to be relatively quiet. Based on the early estimates for the non-farm jobs, we believe the decline in jobs will be more than that, and the unemployment rate will be closing back toward 10%. The decline in interest rates last week had two legs; the continued increase in sovereign debt caused by debt problems in Greece, and safe haven moves by investors into treasuries that are taking some money off the table. Look for the week to become increasingly volatile at mid-week as players make adjustments for employment data.

Thinking of remodelling? Be aware of the new Lead Paint regualtions.

Fri, 26 Feb 2010 04:00:00 GMT

Was your home built before 1978?

In all homes built before 1978 there is a chance that lead paint was present somewhere in the building process of the home. It’s estimated that about 38 million homes contain lead paint. If you in the process of purchasing a home built before 1978 that needs updating or you are considering doing some remodeling, after April 22, 2010 you will be required to have contractors to both test those homes for lead and be certified to work within them using strict lead safety practices.

Once the work begins, areas containing lead paint must be sealed off from the rest of the home in order to minimize exposure to dust that exposes risk of lead exposure. A daily cleanup routine using the use of a special vacuum will be mandatory and the related additional costs will translate to you the consumer.

For more on the EPA standards and the new law visit http://www.epa.gov/lead/pubs/renovation.htm

Nyack's "Pull With Purpose" charity erg-a-thon!!!

Wed, 17 Feb 2010 04:00:00 GMT

Save the Date!!

March 13, 2010 at the Nyack Center 9:00am – 12:00pm,

The River Rowing Association’s 4^th Annual Pull With Purpose charity erg-a-thon to benefit the Nyack Center and their many programs. Teams of five or more row in relay fashion for two hours -- the team with the most meters wins! Put your team together now and help support the community in a fun and exciting way. Minimum donation is $25/rower, but the more money you raise, the better shot you'll have at winning one of many prizes. See attached flyer, full details and team registration at www.riverrowing.org.

5:00pm – 10:00pm, The River Rowing Association Annual Benefit. $45/person, $15 6-12 yrs, 5 and under free. Whether you “Pulled With Purpose” at our charity erg-a-thon to benefit the Nyack Center and need to refuel, or just want to support the River Rowing Association, join us for dinner at the Nyack Center. Cocktail hour at 5pm, dinner at 6pm. Nyack’s own rockabilly group Four Gun Ridge to play from 8pm to 10pm. For tickets register here.

Short Sales Explained

Tue, 16 Feb 2010 11:38:00 GMT

I'm in the middle of negotiating a short sale that has received multiple bids, which is par for the course if done correctly. However, short sales are not for the faint hearted from either the seller or buyers side. One of the Realtors involved in this transaction asked me to explain the process in order to make sure that her client's are fully aware of what to expect, and I thought others would be interested too, so here goes....

Buyers pursue short sales hoping to get a good deal. So when you see a price listed for a home that you think is too low for the neighborhood, before you jump on like a hen on a June Bug, ask your agent to call the listing agent to find out if the home is a short sale.

You might want to think twice about making an offer on a pre-foreclosure, short sale home. It's not as simple as you may believe, and very few can close in 60 days or less.

Many of my Rockland & Orange home buyers have waited 4 to 6 months to close on a short sale, sometimes much longer and typically back out if the negotiations don’t move further after the 6 month period. A lot depends on the Realtor and Attorney team that are negotiating the sale & who owns the mortgage note.

What is a Short Sale?

A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.

Be aware that the seller need not be in default -- to have stopped making mortgage payments -- before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.

When you spot a short sale house that interests you, take your hand off the mouse and step away from the computer. Before you get all excited over the prospect of buying that short sale house, pick up the phone and call your real estate agent. Your agent needs to research that short sale listing first.

In some real estate markets, fewer than one in 10 short sales close. Just because that home is listed as a short sale doesn't mean it's really for sale (because it's subject to lender approval), nor does it mean it will sell at the advertised price. Here are 6 things you need to know before trying to buy that short sale.

Comparable Sales For That Short Sale House

The short sales I list in Rockland and Orange are all priced below comparable sales, yet they are priced in line with pending sales. Why? Because short sales take anywhere from 2 to 4 months, on average, to close, and pending sales will become the comparable sales at closing.

Some short sales are priced ridiculously low. These types of listings receive multiple offers. But all is not lost. To get your offer accepted, it will need to be priced near market value. If you're not prepared to pay above a superficial price on a lowball short-sale listing, then pass.

Mortgage Amounts, Number of Loans and Lenders

Ask your agent to research how much is owed against the home and find out the number of loans that are recorded. A second or third mortgage lender will receive peanuts as compared to the amount a senior lender in first position will get.

Moreover, some lenders, deserving or not, get a reputation for being difficult to work with. If your agent is an experienced short sale agent, he or she will know who these lenders are and can advise you of the difficulty you may encounter.

If your offer is 20% or 30% of the mortgaged amount, it is unlikely that your offer will see the light of day on the negotiator's desk.

Short Sale Listing Agent's Track Record

A listing agent who is advertising a short sale but has never closed a short sale is a risky proposition for you. That's because it's up to the listing agent to submit the short sale package to the lender and negotiate. Your buyer's agent can't talk to the bank. Make sure that the listing agent is certified as a distressed property expert.

Some listing agents hire outside companies to do their job, and the results of those negotiations are sketchy at best. Ask yourself, do you want to risk rejection of your short sale purchase because the listing agent has no experience? A listing agent that works together with a local attorney well versed in negotiating short sales is more likely to get the deal done.

Short Sale Seller Qualifications

Find out if the listing agent has received a completed short sale package from the seller, and ask about the contents of that package. A complete short sale package consists, at minimum, of the following:

Sellers' hardship letter
Tax returns
W-2s
Payroll stubs
Financial statement
Bank statements

Some sellers do not want to cooperate and are slow to return these documents. Others have never been told by their agent that these documents are mandatory. You don't want your short sale purchase delayed because the listing agent doesn't have the required documents.

Number of Short Sale Offers Received

Homes priced under market value will receive multiple offers. An agent is not required to disclose the terms of those offers, but you do want to know how many offers you are up against.

Here's how it generally works:

When a short sale home first comes on the market, the first offer will most likely be a tad below list price.
The second, at list price.
The third offer will be slightly higher, maybe by a $1,000 or $2,000.
The fourth offer will be significantly more.

You want to make an offer that will beat the competition yet still be below market, or don't waste your time.

The Listing Agent's Short Sale Procedures

Although REALTORS are required by the REALTOR Code of Ethics to treat everybody fairly, not every agent is a REALTOR. This means the short sale listing agent may decide to submit only the first offer to the bank and withhold all other offers.

Withholding other offers could be considered to be a violation of the fiduciary relationship formed between the listing agent and the seller. The seller is entitled to receive the highest and best price. Realize that even if your offer is submitted to the bank, as time marches by while waiting for short sale approval, another buyer could outbid you.

Finding the perfect house to call home doesn't have to be hard. Learn how to make your dream home a reality.

Call Vanessa Saunders to find out your best options for either buying or selling a home.

845 598 5083

Appraisals - What's up with HVCC???

Tue, 16 Feb 2010 04:00:00 GMT

In a recent internet poll, real estate industry professionals were asked to indicate the value that was generated by their last HVCC appraisal relative to the sales contract price that the seller and buyer had agreed upon. With 57.7% of the sales values being lowered by more than 3% the results below highlight how dramatically HVCC is artificially deflating the value and equity of every home in America.

I have seen it for myself, first hand, how the new HVCC rules are killing the economy, Mortgage Brokers, Realtors and consumers but continues to pad the pockets of the elite bankers. It's the worst white collar crime ever committed on society....

View this explanatory video for a full explanation of what's going on and sign the petition for the permanent reversal of HVCC.

Thank you,

Vanessa

Avoid Foreclosure Rescue Scams

Mon, 15 Feb 2010 12:00:00 GMT

No More up-front fees for Loan Mods

Mon, 15 Feb 2010 04:00:00 GMT

FTC Proposes Rule That Would Bar Mortgage Relief Companies From Charging Up-Front Fees

The Federal Trade Commission moved to protect distressed homeowners from the promoters of bogus foreclosure rescue and mortgage modification services by proposing a new rule that would forbid companies to charge up-front for these services. Instead, companies could only collect payment after providing services.

“Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend with fraudulent ‘companies’ that don’t provide what they promise,” FTC Chairman Jon Leibowitz said. “The proposed rule would outlaw up-front fees so companies can’t take the money and run.” ...Read more...

The Week in Review

Mon, 15 Feb 2010 04:00:00 GMT

Last Week; interest rates on treasuries increased, the 10 yr note yield jumped 12 basis points, mortgage rates however remained generally unchanged. The week brought the Greece deficit into full focus early in the week generating a little safe haven buying in treasuries but it didn't last long as markets quickly realized the European Union would put a plan ion place to keep Greece from defaulting on its debt. Spain and Portugal are also being observed closely as their financial conditions are not much better than in Greece. The take away from the revelations that sovereign debt among many nations is still on the edge of breaking down; not what markets need now as the debate about recovery is heating up.. Last week had very little economic releases from which to measure economic conditions. The week's major headline was the quarterly refunding by Treasury; it sold $81B of 3 yr notes, 10 yr notes and 30 yr bonds. The 10 and 30 yr auctions were not up to recent standards of strong bidding, but were not failures. China's decision to increase their bank reserves by 50 basis points was met with concern in the US that Asian counties may try to slow growth rates that have escalated to increase concerns over inflation.

This Week; unlike last week there are a number of economic reports that will draw attention; no Treasury borrowing but on Thursday treasury will announce the following week's borrowing, 2 yr notes, 5 yr notes and 7 yr notes will be sold. Wednesday Jan housing starts and permits, starts will likely be up while we expect permits to have declined after a big jump in Dec. Most of the economic data this week will be on the manufacturing and business sectors with industrial production and factory use for Jan and the key Philadelphia Fed business index expected to be a little better. Interest rate remain tethered to a narrow range for mortgages, moving in a 10 basis point yield range; all focus is on the equity markets with a growing outlook of a major correction coming. That said, the equity markets Rate Alert have been looking for a correction for the past month but so far nothing; a day or two of selling then a day or two of rallies keeping the key indexes from and serious declines. It is overdue, we expect the stock market will deliver a huge decline but as long as traders see any decline as a buying opportunity no big sell-off is likely.

Courtesy of Rate Alert

10 Great ways to Keep The Romance Alive for Valentines Day

Sat, 13 Feb 2010 11:40:00 GMT

1.Write love notes to one another, even if it’s just the word “I love you” Leave them where your partner will find them during the day.

2. Share a romantic meal. Prepare it together. Put candles on the table. Dress up. Play your favorite music. Unplug the phone and enjoy each other.

3. Give your partner the day off. Do your partner’s chores for the day. Let them do whatever they want for the whole day. When they get home, they’ll be ready to thank you.

4. Find yourselves a new hobby, a chance for the two of you to spend time together . You can try a couples sports league, cooking workshops or dance classes.

5. Be spontaneous. Do something fun and silly, enter a kissing contest, like the Netflix Greatest Kiss Contest.

6. Pack a picnic complete with candles and wine and take it to a rooftop for a romantic midnight rendezvous.

7. Give your Relationship a fresh start with a fresh coat of paint. Redecorate your bedroom to be more inviting and have an incentive to spend more time there.

8. Go on a second honeymoon. If getting out to a tropical island isn’t a feasible option, no problem….just check into a nice hotel one weekend, for some room service, relaxation and romance.

9. Embrace your inner teenager and do something fun….go to a theme park, stay out all night dancing or go to a midnight movie.

10. Exchange gifts, but set the rule that it has to be something homemade, like a mixed tape or a card. That way it will come from the heart and mean much more.

Real Estate 101 - Buyer's Agent Representation

Sat, 13 Feb 2010 11:32:00 GMT

If you are in the market to purchase a home, it is a good idea to hire a buyer’s agent to work on your behalf. With a buyer’s agent that is an Accredited Buyers Representative by your side, you can rest assured you will get the best deal on the home of your dreams. After all, the role of the buyer’s agent is to work with your best interest in mind rather than working on the behalf of the seller. At the same time, it is important for you to use care when selecting the buyer’s agent who will represent you during the home purchase. This way, you can be certain to get the result you are after.

Narrowing down your options for a buyer’s agent can seem a bit overwhelming at first, but asking yourself these four simple questions while screening available agents will ensure the best results.

Do You Feel Comfortable with the Agent?

The simple truth is that you will be working closely with your buyer’s agent as you search for the perfect home and as you negotiate a deal with the seller. Therefore, it is essential for you to feel comfortable with the agent you select. Not only do you want to feel as if your buyer’s agent is truly operating in your best interest, but communication is key to finding your ideal property as quickly as possible. So, be sure to work with a buyer’s agent who you feel comfortable talking with and who you believe is truly listening to you when you discuss your needs and wants.

Is the Agent Familiar with the Market I am Interested in?

Finding a buyer’s agent who is familiar with the area in which you are interested is also essential. The more familiar the agent is with your market of interest, the better he or she will be able to locate properties on your behalf. Furthermore, the more experience the agent has with your market, the better he or she will be able to judge the value of the property and advice you on the price you should offer and expect to pay.

Does the Agent have Reputable References?

Any time you work with someone who provides a service, it is important to check on his or her references. Before hiring a buyer’s agent, be sure to check references and to use other resources to learn more about the agent you are considering hiring. Performing a Google local search or checking for testimonials on yelp are two great resources to explore.

Does the Agent’s Process Make Sense to You?

Finally, you should ask the buyer’s agent to run down the process that he or she uses for finding a home and for helping to negotiate the price on your behalf. At your first meeting your buyers agent must provide you with a copy of the NY State Disclosure form which is NOT a contract, but a full explanation of what your rights are and the fiduciary duties that they are obligated to offer you. A buyer's agent does not represent the interests of a seller and are subject to many specific provisions set forth in this agreement between you and the agent.

BEWARE of signing a CONTRACT with a buyer's agent because if you do and you decide that he or she isn't working out for you, then you will be responsible for paying them a commission when they do find a property with or without them. If the process doesn’t make sense to you and if the agent is not willing to provide clarification that makes sense to you, you should move onto a different agent

Pearl River - No longer a Muddy Brook!

Thu, 11 Feb 2010 13:21:00 GMT

If you are considering living in Pearl River, Rockland County, The New York Times recently published an interesting article that will be sure to be of interest to you. Originally called Muddy Brook, the town was renamed in around 1870 after a resident said he had discovered pearls in mussels from the waterway.

The community boasts wonderful people, active community involvement and modestly priced homes. Read the article "Lots for the family to love" and contact me for currently available homes for sale in this great community.

Vanessa Saunders

Tel: 845 598 5083

The Federal Reserve's Truth in Lending

Thu, 11 Feb 2010 11:26:00 GMT

The Federal Reserve Board recently approved a final rule amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of costly practices. Credit card issuers must comply with most aspects of the rule beginning on February 22.

"This rule marks an important milestone in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly," said Federal Reserve Governor Elizabeth A. Duke. "The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts."

Fannie Mae Announces Buyer Assistance Incentives

Thu, 11 Feb 2010 11:21:00 GMT

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Read more....

Bank Robbery?

Thu, 11 Feb 2010 04:00:00 GMT

This series of videos from Think Big, Work Small are well worth watching on a daily basis! Take this one (by clicking here) explaining why getting a loan modification on an Indymac loan is near enough impossible because they (the banks) make more money when you either do a shortsale or are foreclosed on....Shameful.

Mortgage delinquencies are continuing to rise

Fri, 05 Feb 2010 04:00:00 GMT

Growing unemployment continues to drive U.S. homeowners to record high mortgage delinquencies and foreclosures. Over the past year, some 5.5 million individuals in the U.S. have become unemployed, driving the unemployment rate to 10.2%, the highest in more than twenty-five years.

According to the November Delinquency report issued by Mortgage Bankers Association (MBA) nearly one in every 10 homeowners (a total of approximately 4.5 million borrowers), was at least one payment behind on their mortgage in the third quarter. In Florida one in four or 25% of homeowners have fallen behind on their payments and in Nevada, 23% of homeowners are delinquent. At a seasonally adjusted rate of 9.64% of all loans, this represents a record high since 1972, the year MBA began tracking statistics related to delinquencies. Combined with those homeowners already in some stage of foreclosure, an astounding 14.41% of homeowners are delinquent or in foreclosure.

While the real estate market showed slight signs of improvement and stability in recent months, record high delinquency rates signal that the foreclosure market has not yet reached bottom. Forecasters anticipate that anywhere from 5 to 7 million additional properties will be foreclosed on during the next twelve to fourteen months and that the real estate market in the U.S. will not fully begin to rebound until 2011.

While the HAMP (Home Affordable Modification Program) may help some, the majority of these individuals will reach foreclosure costing them the 'American Dream' and costing banks and lending institutions millions in administration and disposition costs. What can we do now to minimize the risk and assist these individuals; working to prevent foreclosure through either a short sale or bank driven loan modification program? Instead of sitting back and waiting for the inevitable banks and lending institutions need to continuously assess their portfolios and work with individuals to prevent foreclosure.

If your savings are being thrown into the black hole of your existing mortgage and you see the value of homes in your neighborhood dropping you may well qualify for a loan modification or short sale to help you stave off foreclosure.

Call me for a confidential meeting to discuss the options that are available to you before it's too late.

Vanessa Saunders, MBA, MIMC

Certified Distressed Property Specialist

845 598 5083

How to safely remove mold

Wed, 03 Feb 2010 04:00:00 GMT

Well, having done a ton of research as to the best methods of removing mold, I've come to the conclusion that there is an enormous amount of conflicting information out there, and to be on the safe side I'm directing you to the EPA's mold removal information. That way there can be no arguments in the future. This can be very dangerous stuff and needs to be taken very seriously. So click here and let me know if what you find on their site doesn't answer your immediate concerns.

Vanessa Saunders 845 598 5083 vanessa@wesellny

What is Mold?

Tue, 02 Feb 2010 04:00:00 GMT

Fungi Kingdom

The Kingdom Fungi is a diverse kingdom consisting of over 1 million species and includes mushrooms, molds, and yeasts. Fungi are mainly saprophytic meaning they obtain their nutrition from the breakdown and decay of organic matter. They can thrive in many places such as soil, plant litter, wood, live plants, dung, animal remains, fungal remains, etc, and play a vital role in the environment as a decomposer of dead-plant matter.

Molds

Commonly called mildew, molds (sometimes referred to as "black mold") are a subset of fungi that produce fluffy or powdery growth on surfaces. Toxic molds can grow on cloth, carpets, leather, wood, sheetrock, insulation (and on human foods) when moist conditions exist.

Molds are ubiquitous, the most common form of fungus on earth, and may grow at high levels indoors, in a home or building, if the right environmental conditions exist. Factors that influence the distribution of molds are most importantly a source of moisture, proper nutrients, temperature, and light.

Carbon containing materials that are abundant both indoors and outdoors may provide the essential nutrients for growth. Sources of moisture, which are usually the limiting and most important factor. They can come from high humidity levels, condensation, and water intrusion due to a number of events such as indoor leaks and floods. Temperature and light may affect fungal growth, but are usually not a limiting factor since most fungi can grow in light and total darkness.

Excessive exposure to molds can lead to adverse health issues for humans. The affects of human exposure to mold is not a new, emerging problem but has been manifested for many years. Documentation of mold growth indoors dates back as far as the Old Testament:

From Leviticus Chapter 14, verses 33-57

On the 7^th day the priest shall return to inspect the house. If the mildew has spread on the walls, he is to order that the contaminated stones be torn out and thrown into an unclean place outside the town. He must have all the inside walls of the house scraped and the material that is scrapped off dumped into an unclean place outside the town. Then they are to take other stones to replace these and take new clay and plaster the house
If the mildew reappears in the house after the stones have been torn out and the house is scraped and plastered the priest is to go and examine it and, if the mildew has spread in the house, it is a destructive mildew: the house is unclean. It must be torn down – its stones, timbers and all the plaster – and taken out of the town to an unclean place.
Anyone who goes into the house while it is closed up will be unclean till evening.
Anyone who sleeps or eats in the house must wash his clothes…..

Molds can cause a variety of reactions in hypersensitive individuals ranging from allergic responses to neurological damage. Molds may proliferate in almost any indoor environment where excessive amounts of water and organic matter persist.

The key factor in limiting mold exposure indoors is to prevent it’s growth through moisture control, maintenance, and proper cleaning methods.

How a Mold Reproduces – It’s Life Cycle:

When the appropriate conditions for growth exist: presence of moisture, nutrients, temperature, etc, the mold begins to reproduce via it’s life cycle.

Hyphal Growth: Hyphae are the thread-like filamentous cells that release enzymes which degrade and absorb nutrients from a substrate (ie. oganic debris, cellulose, wood, almost any carbon containing material including human skin). Upon obtaining it’s nutrition, the hyphae will grow into a mycelium, the main body of the fungus which is also the visible portion.

Spore Formation: Spores form on the ends of some hyphael cells. The formation of spores is dependent on a variety of environmental factors including light, oxygen levels, temperature, and nutrient availability.

Spore Dispersal: After the spores are formed, they are released into the air and carried elsewhere to begin the process of germination and growth all over again. Mold spores are highly resistant and durable. They can remain dormant for years in even hot and dry environments.

Spore Germination: Once the spore is dispersed to a new area and when the appropriate conditions exist, moisture and nutrient availability, the spore will begin to germinate into a new hyphael cell.

Now that we know what we are dealing with I'll research some of the best ways of dealing with mold. Look for the next blog from Vanessa Saunders or call me for more information: 845 598 5083