Early Warning Signs of Foreclosures

Early Warning Signs of Foreclosures
Homeownership is a cornerstone of America that is protected, promoted and cherished. To lose a home
for any reason is devastating, but to lose it through foreclosure can also be embarrassing and
demeaning. When you are having conversations with homeowners that have mentioned foreclosure,
revisit the warning signs here.
• Credit card debt out of control. (Maxed out cards). Paying the minimum amount due.
• Paying for necessities with credit cards (groceries, utilities, etc).
• Cannot meet monthly financial obligations (choosing which bills to pay).
• Borrowing from friends and family.
• Loss of employment, or reduction in hours or wages.
• Major illness which can cause loss of work and an increase in health expenses.
• Divorce, separation or other traumatic family or personal situations.
• Death of a spouse or significant other.
• Cannot pay the new Adjusted Payment on the ARM mortgage loan.
• Major unbudgeted maintenance expense.
• Excessive debt is the number-one cause of financial collapse and foreclosure.
If you detect any of these warnings, early intervention could help save a home.

Foreclosure and Link between a Homeowner's Credit and Foreclosure

A foreclosure is a huge mark to a credit score. Under Fannie Mae guidelines, a borrower will not qualify for a loan for at least five years, and probably seven years. FICO is an abbreviation for Fair Isaac Corporation and refers to a person’s credit score based on credit history. Lenders use the number to decide if the person is likely to pay his or her bills. A credit score is usually between 300 and 850. A credit rating where the FICO score is 660 or above means there have been no late mortgage payments within a 12-month period. This is the best credit rating to have when entering into a new loan.

Avoid a Foreclosure --- A foreclosure is a catastrophic event for any property owner and has serious legal, credit and tax implications. Working with homeowners on the verge of foreclosure or in the foreclosure process is challenging for all parties involved. However, as REALTORS® we can provide expert assistance during this difficult time.

Mortgage Debt Forgiveness

Be informed!

Real Estate Contract and Financing

Here are some things to look out for when preparing and reviewing contracts and considering buyer's financing…

1. Furniture included on a contract
If ANY Furniture is included on a contract(even though it states it has no value in the contract) the loan-to-value will be reduced by the value of the furniture. The furniture will have to be appraised and the amount of that appraisal will be reduced from the purchase price which may result in a buyer having to come to closing with additional funds. The best thing to do, is to have it removed from the contract.

2. Leasebacks
If a buyer is purchasing a home as a primary residence or a second home, the seller cannot lease the property back for more than 60 days. If this occurs, the buyer must purchase the property as an investment property which will result in a higher interest rate and possibly more of a down payment.

3. Seller Contributions
A seller can only pay for closing costs and/ or pre-paids. The buyer cannot receive any credits for repairs. If the seller is crediting for repairs, the addendum to the contract must be a contribution to the buyer for “closing costs” and not “repairs.” The seller cannot contribute anything toward buyers down payment.

4. Financing Contingencies
Understand Loan commitments. If a loan commitment requires documentation from the buyer and the buyer cannot supply what is asked for, your buyers escrow is in jeopardy. Once a loan commitment is issued, the only condition that can “save” your buyers escrow deposit is a property condition( i.e. appraisal, repairs, etc…) if a condition on the loan commitment has anything else other than a “property” condition and the buyer cannot meet the condition, the buyer could lose their escrow deposit. It is very important that the agent follow up on the appraisal. The appraisal should not take long than two weeks from the time of application. if more than two weeks have gone by, the agent needs to follow up immediately.

5. The contract musts be READABLE. If it has been faxed several times and the final contract cannot be read, you will need to get all parties to sign a new and CLEAR contract. Lenders will not accept unreadable contracts. You can send a contract that is not fully executed, but readable and we can marry that with the illegible contract that is fully executed.

6. “Owner of Record” is not an acceptable seller. You must have the actual sellers name on the contract.

7. Be sure to know your seller contribution limits for closing costs on your contract. 6% of the purchase price on FHA and Conventional loans at a 90% or less loan-to-value. Any conventional loans over 90% only allow 3% seller contribution. If the buyer is purchasing the property as an investment property, they are limited to 2% seller contribution.

Courtesy of Jonathan Smith, Coldwell Banker Home Loans

The Richter Team is proud to be associated with Coldwell Banker and we look forward to working with you in 2012.

Coldwell Banker is your best real estate partner to sell or buy real estate. Our experience and results speaks for itself.

In Florida, we had 33,067 transaction units closed (without REO) with over $7.6 billion in sales during a challenging 2011 market, as of 11/30/11. Our listings are translated into 13 languages to reach buyers. Our online presence is unparalleled.
Real estate agents also recognized the power of the brand, a great business model, and outstanding company support - 1,034 sales associates joined the company in 2011 of which 728 are experienced agents, as of 10/31/11.
Real Trends 500 ranked NRT as the nation's tops real estate brokerage in 2010 for both sales volume and closed transactions sides for 14th consecutive year. Through our online partners, our properties are now exposed to over 15 million visitors on over 550 websites everyday.

Reach out to us, you have questions, we have answers. Our Priorities are Simple, They're Yours.

Contact us at 321-277-7100 

Painting Tips from the Pros

A successful do-it-yourself painting project takes more than the right tools and a steady hand. Follow these tips and tricks to make your walls look like they were painted by a pro.

Preparation

Take your time. That's what the professionals do. Remember that proper prepping and cleanup can take longer than the actual painting.

Use rubber-backed drop cloths to cover your floors. Old bed sheets and canvas cloths don't give complete protection.

Store all hardware from outlets and switch plates in a baggie, and label with masking tape.

When filling cracks in the baseboard with caulk, cut the tip of the tube smaller than you think it should be. Too much caulk can make a mess.

Invest in high-quality woven roller covers. The cheap ones will leave fuzz on your wall and need to be replaced more frequently.

To make a perfectly straight line with tape, invest in a tape machine.

For an extra-professional touch, smooth down drywall — no matter what shape it's in — with a drywall pole sander. If your walls are plaster, gently sand the necessary areas with a dry sanding sponge.

Don't forgo primer. A good primer will seal stains, establish an even base and ensure that the topcoat goes on smoothly.

Painting

Don't open your paint canwith a screwdriver, as it can damage the lid. Instead, use a lid opener. Many hardware stores will give these away for free when you purchase paint.

Always stir the paintwith a long wooden stick (usually available at the store for free) until all the sediment on the bottom has been mixed in.

Don't submergea brush into the paint more than one-third of the way, or you'll clog the base of the bristles, making clean up more difficult.

Apply a coat of paint to the backside of the light switch plate in the room. After it dries, jot down all the project details — date, paint brand, name, number of gallons required, number of coats applied and any other relevant information.

Clean up

Don't waste time cleaningif you're going to be painting the next day. Place rollers and brushes in Ziploc or plastic bags and store them in the fridge. Make sure you allow them to return to room temperature before reusing.

If the store didn't do this for you, dab some paint on the lid to help you identify the color later. Write the name and number of the paint on the lid with a permanent marker.

Use a screwdriver wrapped in an old t-shirt or rag to wipe the rim of the paint can clean.

To avoid damaging the lid, don't seal the can with a hammer. Use a rubber mallet instead.

Store cans upside down to create a tight seal around the lid. Because latex paints are water-based, keep them where they won't freeze.

Rain Gutters:
Make Clean Up a Snap

With leaf season right around the corner, now's a great time to make sure your rain gutters are clear of debris. While you can hire a service to do the work for you, doing the job yourself is easy and affordable with these tips:

• Clean your gutters at least twice a year, more if your home is surrounded by trees
• Wear heavy work gloves to protect your hands from sharp metal that may be on the gutters
• Don't let the gutter back up with leaves since they'll eventually come loose from their mountings and destroy the gutters

Ready to clean? Follow these steps:

1. Remove loose debris from the gutter using a small tool, such as a garden trowel, and scrub encrusted dirt with a stiff brush
2. Power wash gutters with a hose to clear debris – just make sure you send it toward the drain outlet
3. Make sure drainpipes are clear, if necessary use a plumber's auger to pull debris from the bottom of the drain

Down the Drain: Garbage Disposal Dos & Don'ts

If your kitchen has a garbage disposal, you know how easy it makes mealtime clean up. But what you may not realize is that your disposal comes with some pretty important rules. Here are some of the most vital:

Do:

• Insert food slowly. Stuffing it all into your disposal at once can cause clogs and shorten the life of your system.
• Grind hard materials. Many people think food like chicken bones or small fruit pits are a no-no, but they can actually help clean the walls of the disposal.
• Use cold water for at least 20 seconds. This will solidify grease so that it can be ground up. Also, make sure that all food particles are washed completely down the drain.
• Keep it clean. One good way to eliminate drain smells is by grinding citrus fruit peels. You can also add a few drops of dish soap and let the disposal run for a few minutes.

Don't:

• Use hot water. This will make grease liquefy and build up, which can clog the drain.
• Grind fibrous or expandable foods. The former, like celery stalks and onionskins, can tangle up the disposal. The latter, like pasta and rice, can clog it.
• Turn off the motor too quickly. You'll want to make sure all food particles are completely ground. Once done, continue to run the water for at least 15 seconds to flush out particles.
• Wash coffee grounds down the drain. While they won't harm the disposal itself, they can clog pipes and drains.
• Forget to use it. Lack of use can cause rusting and corrosion, which can lead to premature system replacement.

10 Easy Upgrades to Add Style & Value to Your Home

Sometimes, it’s the little things that make the biggest difference in the value and appeal of your home. Whether you’re trying to sell your home of just spruce up the place, here are 10 easy ways to get started.

1. Update hardware on cabinets and drawers
2. Replace towels and rugs in the bathroom(s)
3. Add overhead lighting or wall sconces to brighten rooms
4. Declutter small spaces and closets with DIY storage kits
5. Wash or power wash the exterior of your home (especially windows)
6. Add area rugs to throw in a hint of color
7. Hang a mirror in small rooms to give the illusion of more space
8. A fresh coat of paint on walls and trim brighten any room
9. Try a fresh new color on your front door for character
10. Mow and mulch your lawn even in the cooler months

Make a plan. Set a budget. Get started!

Modified Home Affordable Refinance Program (HARP)

Potential Impacts of Modified Home Affordable Refinance Program (HARP) Announced by the President: Requires borrower to be current on their loan payments and the loan must be a Fannie Make or Freddie Mac Loan. Home value is irrelevant, it does not require appraisals or extensive underwriting requirements. Loan servicing companies are currently defining the process.