Do you Want to ‘Move-Up’? The Clock Is Running!

While you’ve probably heard a lot in the media about the government’s efforts to rejuvenate the housing market with the first-time home buyer tax credit, you might have missed the fact that the most recent expansion of the legislation also includes a $6,500 credit for current homeowners who want to purchase a new home…commonly referred to as “moving up.”

I’ve worked with many homeowners who have wanted to move to a new home over the past year, but have stayed put due to a lack of confidence in the market. Now, however, thanks to the tax advantages of the Worker, Homeownership, and Business Assistance Act of 2009, these homeowners are moving off the sidelines and purchasing the homes they’ve always wanted.

But the time to act is now—there is only a short window of opportunity! The move-up buyer credit expires in April of 2010, which means you must contract and close on your home purchase by June 30, 2010. As you know, selecting a home is not a simple process, so start your search now so you don’t miss the deadline.

For starters, here are the key facts you need to know about the move-up buyer tax credit:

1. A qualified current homeowner who wishes to move to a different home (a “move-up” buyer) must have owned and resided in their residence for five consecutive years out of the last eight. It’s not enough that you have been homeowners for five years—you must have been in the same home for five consecutive years.

2. Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. According to Goldman Sachs, these income limits make approximately 70% of current homeowners eligible for the credit.

3. The maximum credit amount for current homeowners is $6,500. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less.

4. Even though the term “move-up” is used to describe these buyers, the credit is not predicated on buying a home of higher value than your current home.

5. Move-up buyers are not required to sell their current home to qualify for the credit. They must reside in the new home for at least three years, but they can keep their existing home and either leave it vacated or use it for rental purposes.

These are just a few of the key facts surrounding the move-up buyer tax credit. If you would like to find out more, including whether or not you are eligible for the credit, please e-mail me. Be sure to forward this blog to all your homeowner friends so they can take advantage of this once-in-a-lifetime opportunity.

Four Ways to Optimize Your Credit Profile

Our next door neighbor the other day was out buying a new car. Normally, in the past he could walk in and drive out in whatever he wanted. But with the change in credit and the way it is viewed now, his trip to the dealership took a lot longer than he expected.

Whether you’re looking for ways to dig out of your financial hole or ways to avoid getting into one, the importance of actively managing your credit and debt profile has never been greater. (Just ask my neighbor.) Americans have become well-versed in asset management but not necessarily liability management. Until recently, easy access to credit has made our current generation feel immune to the real risks of overextending your credit.

In today’s difficult economic environment, as banks get more restrictive about who gets approved for credit and which consumers get the preferred rates, as a member of The Top 5 in Real Estate Network(R), I am advising all my clients to spend more time analyzing the types of credit they have and how it is used. The reality is, we all need to change our behaviors and adapt to the realities of the current environment. When it comes to liability management, here are some simple first steps to take from credit consultants, Approvalguard.com:

1. Understand How Credit Works. Now is not the time to be content with understanding 80% of what you need to know about your credit. Ninety-four percent of consumers are challenged with understanding the basics of how personal credit works. In most cases, they build credit over a lifetime of trial and error. Invest some time in researching and understanding the current credit climate and/or contact your financial advisor or a trained credit professional.

2. Continually Evaluate and Monitor Your Current Credit Profile. The second step is to evaluate your current credit and debt profile and establish a plan based on your short- and long-term credit needs. Continually monitoring your credit report and profile is no different or less important today than getting a physical exam by your doctor.

3. Optimize Your Credit. Each of your debts should be periodically reviewed and analyzed. Are there options you can take to improve your overall credit profile so that you’re more desirable to creditors for their preferred interest rates? Should you consolidate some of your debt? Once you strengthen your credit and debt profile, do you have options on your home, auto and credit cards to negotiate lower interest rates and terms that would save you money monthly?

4. Rethink New Purchases. Excellent credit is like an insurance policy. When you need to use it, you want to qualify for the preferred interest rates and terms. Maintaining your credit “insurance policy” is critical for special purchases like a home, car or major appliances when needed. Don’t wait until there’s an immediate need because your chance of making a material change in your profile overnight is very difficult.

Remember, the credit environment just isn’t what it used to be. There has never been a more critical time to build, optimize and manage your personal credit and debt profile. If you would like to learn more, please e-mail me, and be sure to pass this blog along to your friends, family and colleagues. We can all benefit from this important information.

Lower Your 2009 Tax Debt

As a local Realtor, I help many clients on a wide range of financial concerns, not just their real estate investments. A recent client was preparing to close on a new home and together we realized now was the time to do a few things to make next year's tax season a little easier. As 2009 comes to a close, I wanted to alert you to some important information that could save you money come tax time.

In addition to the $8,000 tax break for first-time home buyers and the newly expanded tax credit that includes move-up buyers, new tax-relief bills passed in 2008 provide for a number of other tax breaks that may lower your 2009 tax debt. Plan now and review these breaks with your accountant to see if they could help reduce your tax liability in 2009 and beyond:

• Payroll Tax Credit. For 2009 and 2010, Congress gave workers a 6.2% credit on earned income, applied as lower income tax withholding (there are caps based on income). Recipients of Social Security, Railroad Retirement benefits or Supplemental Security Income, some federal workers, and veterans with disability pensions will get a one-time $250 check. Self-employed workers may be able to reduce quarterly estimated payments to get advance benefits.
• Larger Personal Exemptions. For 2009, each personal exemption you can claim is worth $3,650—up by $150 over 2008.
• Higher Standard Deductions. The standard deduction for married couples filing jointly rises to $11,400 up by $500 from 2008. For singles, the amount increases to $5,700—up by $250 over last year, and heads of households can claim $8,350, a jump of $350.
• Tax Credit for College Tuition. For 2009 and 2010, the Hope credit is replaced by a new credit of up to $2,500 per student a year for four years of college, not just the first two years. It now also covers the cost of books, but begins to phase out based on higher incomes.
• Child Tax Credit. If the credit exceeds the filer’s tax liability, all or part of the credit will be refunded if the filer earns more than $3,000 – down from $12,550 in 2008. (Also, for families with three or more children, the maximum earned income tax credit for 2009 and 2010 rises by $628.50)

Other changes that could affect you include higher income limits for deductible IRAs and Roth IRAs, higher estate tax and gift tax exemptions, credit for energy-saving home improvements, and partial exclusion of unemployment benefits.

To understand how the new tax breaks could save you money, consult with your financial advisor or e-mail me for more information. Be sure to this with your family and friends—in these tough economic times, we could all use a tax break!

Start ’Em Early — Teaching Your Kids About Credit

Being a father of 3 kids ranging in age from 2 to 14 in this day and economy I've been thinking about their future. The news is full nightly with problems our banking system is having and how our country is saving and spending. I am working with my kids to teach them about credit and spending and hope you will think about it too. Consider this.

Many parents have learned how to build and manage their credit and money through trial and error. As a result, in many cases, their credit has either been damaged or not optimized in the process. Parents can find a number of easy ways to get educated on more effective ways to manage their money and credit. Here are some important, age-specific tips that parents can use to help their children learn the value of money and, consequently, credit from ApprovalGuard.com:

1. Start Young—Young children are sponges for new information and can learn valuable money management lessons through their interaction and activities with parents. Use daily errand activities like going to the supermarket or bank to teach kids lessons about budgeting and money. Consider having them “pay” for rent, food, and other things with toy money for a week. Let them learn on their own at first and then go back and help them make a budget. Once your children are ready, consider a weekly allowance that is tied to household responsibilities and some form of budgeting and saving. Additionally, explain the difference between “wants” and “needs” to your children.

2. The Teen Years—Teen spending makes up a great deal of the economy and, if you are not careful, it can inadvertently cost you a good portion of your salary as well. Work with your teenagers to teach them the importance balance between spending and saving as well as budgeting. Help prepare them to appropriately begin building their own credit.

3. College Bound—Many young adults will begin receiving offers for credit cards (although this will soon change with the new Credit Card Act of 2009) and quickly find themselves with debt they cannot pay. College can be treacherous for students with credit cards. If you haven’t built the foundation of educating your children on effective credit management by the time they’ve entered college, it is not too late. It is critically important to start educating them on the best practices noted above and lead them by example through effectively managing your own credit. The key is to not procrastinate any longer. Various educational resources exist as referenced in this column to help minimize any anxiety you may have regarding your own subject matter expertise.

The road to good credit doesn’t have to be a rocky one. Educating our children about money and credit from an early age will help them build a positive future. For more tips on credit, please e-mail me, I can point you in the right direction. I look forward to hearing from you... and your kids in the future.

Overcoming Common Foreclosure Fears

As foreclosure numbers continue to rise, you might be one of the many homeowners worried about losing your home. The truth is, foreclosure can be prevented, however, most homeowners are too confused or afraid to confront their mortgage problems and, therefore, neglect taking the necessary steps to potentially save their homes. I have helped put many financially-challenged clients on the path toward avoiding foreclosure. The first and biggest step is always overcoming their fears.

Here are six of the most common foreclosure fears the Consumer Credit Counseling Service (www.cccsinc.org) encounters, along with the steps homeowners can take to overcome them and start taking action to save their homes.

Fear: Homeowners are afraid to let the mortgage company know they are having a problem because they think it will speed up the foreclosure process.

Contacting your lender must be the first step as it gives you a chance to explain why you have fallen behind on your payments and what steps you are taking to get back on track. Most lenders have a financial interest in keeping you in your home and may be willing to alter the terms of your loan or devise a repayment plan.

Fear: Homeowners believe that if their mortgage company has already turned them down for a loan modification, there is no point in contacting a counseling agency.

Many homeowners are turned down for a loan modification because the information they provide to their lender indicates that their expenses exceed their income or that they have not provided accurate documentation and information about their loan. A housing counselor may be able to suggest alternatives that better suit your current financial situation or help you make adjustments that make you a better candidate for a loan modification with your lender.

Fear: Homeowners fear being judged by others for seeking help.

These are challenging financial times. While it may feel like you are the only one struggling, the reality is that many of your friends and neighbors are also finding it difficult to stay afloat.

Fear: Homeowners think it is better to use all of their financial resources before seeking help.

Many homeowners try to ride out the financial storm, using their savings and depleting their retirement accounts before seeking help. By the time they do seek help, they are in an even more desperate financial situation and they have spent the resources that may have given them more options in dealing with their mortgage crisis.

Fear: Homeowners facing foreclosure fear that their situation is hopeless.

While for some, seeking help may mean saving their home, it is inevitable that some homeowners will end up in foreclosure. A certified housing counselor or real estate professional can help homeowners work through the foreclosure and build a new path for long-term financial success.

Fear: Companies claiming they can save your home charge large, up-front fees.

You can receive counseling from a reputable, nonprofit housing counseling agency at no charge. While there are unscrupulous businesses looking to take advantage of homeowners, there are also many HUD-approved housing counseling agencies that offer help for struggling consumers.

Please don’t let fear stand in the way of saving your home. Feel free to e-mail me for guidance on your specific situation and please pass this along to any friends and family members who may also need to confront these fears and get proactive.

I am here to help and I look forward to hearing from you.

How to Expedite the Loan Modification Process

I am frequently asked these days for my advice on loan modification … specifically, how quickly new loan terms can be arranged. Waiting to find out if your application for loan modification has been accepted can be a nerve-wracking and frustrating experience—especially if you’re still receiving late payment notices and creditor calls. Here are some important insights into the loan modification process from consumer advocate and author Ralph R. Roberts.

1. The loan modification process typically takes 30 to 90 days, depending mostly on your lender. The loan modification timeline, however, is not set in stone. The more complex your situation, the longer the process takes. Borrowers with a lot of collateral issues can see their loans take longer than what has become the typical 30- to 90-day timeframe.

2. A professional can often reduce the amount of time required by processing your paperwork efficiently, presenting your application exactly the way the lender wants it, and knowing from past experience what the lender is able and typically willing to agree to. Find out how long the process is likely to take and mark the dates on your calendar.

3. Refer all matters to the professional who is representing your loan modification. Anything you say to the lender could confuse things or compromise your representative’s ability to negotiate the best deal on your behalf.

4. Log all phone calls and correspondence between you and your lender or representative. Keep track of important dates. Consistent follow up is paramount to a successful modification.

5. Explore other options. If the lender denies your request for a loan modification or presents an offer that you cannot accept, you will need a plan B. Consult a real estate agent about listing your home for sale. Talk to a mortgage broker or loan officer about refinancing. Speak with a bankruptcy attorney to find out whether filing bankruptcy would be a better choice.

6. You might continue to receive delinquency notices or late payment phone calls. Push to have all default and foreclosure actions put on hold while your workout attempts are underway.

The loan modification process can be long and trying, but doing your part to keep the process on track by remaining informed can increase your chances of a positive outcome and reduce stress. For more advice on loan modification, please e-mail me. I can point you in the right direction.

I look forward to hearing from you. No question or problem too big or too small.

Fast Ways to Update Your Kitchen, Increase Value

While there are many different variables that contribute to selling a home, during the course of my real estate career, I have witnessed one constant: the kitchen.

Today, the kitchen has become more of a multi-functional space than ever before, where cooking happens alongside bill paying and homework, not to mention the kitchen’s role as social hub for family and friends. That’s why it’s more important than ever to buyers and sellers alike that this key room be fresh and inviting.

While home improvement experts report that kitchen remodels provide anywhere from an 80-100% return on investment, based on my years of experience working with homeowners, I have found that just by updating certain aspects, the entire look and feel of the kitchen can be refreshed and modernized—and your home’s value increased in the process.


While there are many different variables that contribute to selling a home, during the course of my real estate career, I have witnessed one constant: the kitchen.

Today, the kitchen has become more of a multi-functional space than ever before, where cooking happens alongside bill paying and homework, not to mention the kitchen’s role as social hub for family and friends. That’s why it’s more important than ever to buyers and sellers alike that this key room be fresh and inviting.

While home improvement experts report that kitchen remodels provide anywhere from an 80-100% return on investment, based on my years of experience working with homeowners, I have found that just by updating certain aspects, the entire look and feel of the kitchen can be refreshed and modernized—and your home’s value increased in the process.

As design expert Melissa Birdsong, vice president for Trend, Design & Brand at Lowe’s Companies, Inc. (www.lowes.com), says, if the kitchen is outdated and tired, the whole house can feel that way; a few simple updates can make all the difference in getting the green light on the buying decision. So whether you want to update your kitchen for your own lifestyle enhancement or to help move it off the market, try these tips from Birdsong:

1. Color and light are the easiest, most cost-efficient elements to add personality and ambience to the kitchen. Use your vegetable bin and spice cabinet for inspiration! A scheme of natural greens, yellows, mustards and russets washed with dimmable overhead and under-cabinet lighting can add energy as well as create a level of calm.

2. If the existing cabinets are sturdy but the finish is sending out a distress signal, a well-executed paint job can turn it around. Mismatched appliances and worn flooring are other leading visual cues, so if the budget permits, replace them.

3. Last but not least, add sparkle and a new point of view to the kitchen by replacing the metals palette--cabinet hardware, faucet, lighting and outlet covers. A few thoughtfully chosen, simple finish updates can seal the deal.

As a Member of the Top 5 in Real Estate Network(R), I have access to more great ideas for improving your kitchen as well as all areas of your home…both for your own lifestyle enjoyment and to increase your home’s value. Please e-mail me to discuss other ways to improve your home’s value and please forward this email to your social network who may also find it helpful.

6 Ways to Attract Great Residents to Your Rental Home

These days, many homeowners are turning into landlords. Whether you have relocated and are still waiting for your previous home to sell or whether you are trying to increase income by renting a vacation or second home, you might suddenly find yourself in need of a renter.

Of course, we’ve all heard nightmare stories about bad tenants destroying properties and causing prolonged evictions. As a Member of the Top 5 in Real Estate Network®, I’ve learned of a few simple guidelines for finding serious renters and thereby, preventing most bad occupancies:

1. Location - There is no question that the more desirable a neighborhood, the lower the risks of having a bad resident apply. It is also worth noting that the higher the rent, the lower the risk.

2. Condition - A very vital but controllable influence for attracting desirable residents is the home's condition. The formula is simple. Make it look like everything was just completely redone. Exterior property condition is very important as well.

3. Pricing - Don’t be afraid to price a property slightly below what the market dictates. For every 2½ weeks a vacancy sits on the market, the annual rent could have been lowered by 5%.

4. Signage - A prospect calling from a yard sign should be treated as a serious lead. They have seen the exterior of the property and know its precise location.

5. Response Time - Rapid response time can make all the difference. Use cell phones or text messaging to allow prospects to quickly reach someone who can show the property or answer any questions.

6. Screening - Despite all of the above, screening is still vital. Be sure to adhere to a written tenant selection plan that is in compliance with all Federal, State and Local Fair Housing Laws and the Federal Fair Credit Reporting Act.

Great renters and increased income can be found by following these simple but effective steps. For more information on finding the right renters for your home, please e-mail me. And be sure to forward this article to members of your social network who may also find it helpful.

These are just a few ideas I have. Please call me to find out more.

Hope starts with you and me

This year I have signed up to walk in the American Cancer Society Making Strides Against Breast Cancer and I’m hoping you’ll support me. I know that there are a lot of breast cancer events out there, but Making Strides speaks to me because funds raised enable the American Cancer Society to help people stay well and get well from breast cancer, find cures, and empower people to fight back today. With your help, we can save lives.

They say that every donation makes a difference, and it really is true. I know that times are tighter than normal for many of us, but if you can spare even $5, it truly will make a difference. If everyone walking in Making Strides this year were able to raise just $5 more, we would raise an additional $3 million to fight breast cancer. Imagine what an incredible difference we could make together!

To support me in my efforts, please visit my personal page. If you’re going to be in town, I’d love for you to join my team and walk with me. If not, please support my efforts with a donation of whatever amount you can spare.

As a little extra inspiration, I thought you might like to know a few of the ways your donation will help the American Cancer Society save lives every day.

When you make a donation...

* More people in our community will have the information and tools they need to help prevent breast cancer or find it early.
* More people with breast cancer will have a place to turn around the clock to help them through every step of their cancer journey – whether it’s a free ride to treatment, a place to stay, or just talking to someone who has "been there."
* More progress will be made toward finding breast cancer’s causes and cures. The American Cancer Society has played a role in nearly every major breast cancer breakthrough of the last century, which have led to the discovery of lifesaving breast cancer treatments like Tamoxifen and Herceptin. You will help us find more.
* More women – like our own mothers, daughters, sisters, and grandmothers – will have access to lifesaving mammograms and treatment they need.

Each of us has our own reasons for caring about the fight against breast cancer … whatever your reasons, I hope you’ll choose to make a difference by signing up to walk with me or making a donation online to support my effort. I’m so grateful to have great people like you in my life who care about breast cancer! Together we will make a difference, make history, and make strides.
Click here to visit my personal page.
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Click here to view the team page for Prudential Palms Realty
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Sarasota Tops Markets In The US

NBC's Today Show Real Estate Expert Barbara Corcoran lists the top 10 Markets in the US to buy in now. Watch this clip, you will be amazed.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Want to Refinance?

Heed These 10 Appraisal Tips

Refinancing in today’s credit-crunched market can be challenging at best. A successful refinance all begins with the appraisal, used to set the maximum amount you’re allowed to borrow against your home. The problem is, in today’s market, sinking home values are often lowering appraisals as well. If you are considering refinancing your home, heeding these important tips on appraisals before proceeding can improve your refinancing options and save you time and money:

1. Continuously research the value of your home and the other homes in your neighborhood; pay attention to foreclosures in your area as they may drive down the value of your home. As a member of the Top 5 in Real Estate Network®, I am well-equipped to provide you with a detailed assessment of the current value of your home.

2. Since appraisers use “comps” (comparable market sales) of local properties sold within the last six months to value your home, make sure your loan officer leverages their knowledge to research comps in your area, before ordering the appraisal.

3. If you use your own appraiser, research them first and ask your lender to cross check them for any potential issues that may delay the process. Great loan officers will always confirm your appraiser’s credentials. I can also recommend a credible appraiser to work with.

4. Direct your loan officer to work with local, experienced appraisal companies. Local appraisers have a deeper knowledge of the surrounding neighborhood and will likely be more readily available for the home inspection to speed your appraisal process.

5. The appraisal report is yours to keep. Find out in advance who pays for the appraisal—many times appraisal fees are the homeowner’s responsibility and have to be paid up front.

6. New lending regulations require two appraisals in some situations—ask at the beginning whether you’ll need one or two.

7. Commit to your lender before committing to an appraisal. Being comfortable working with your loan officer is imperative. They often will be the liaison between you and the appraisal company.

8. Make sure any major repairs are completed before moving forward with your refinance. Structural damages drive your home value down and jeopardize the approval process for today’s popular government-backed FHA loans.

9. Don’t overestimate the value of making cosmetic home improvements. The expense is rarely justified because in the appraisal world, only improvements that add square footage will significantly increase home value.

10. Rely on market value rather than tax assessments for a realistic appraisal value—in today’s market, tax value and current market value may differ widely, but your lender can only go by appraisal value.

Finally, homeowners should expect their lender to clearly explain the appraisal process and all of the steps for refinancing up front. I can also assist you in the refinance process and help point you in the right direction—just e-mail me with your questions.

Sales in July 2009 up 29 percent over July 2008 in Sarasota real estate market.

The Sarasota real estate market in July 2009 was substantially healthier than last year at this time, with total unit sales up 29 percent to 595, and the months of home supply on the market once again dropping to levels not seen in three years. There were 450 single family and 145 condos sold in July, compared to 331 and 130 last July.

July 2009 sales were only slightly lower than the 610 sales in June 2009, when overall sales rose above the 600 level for only the second time in 26 months. The statistics all continue to point to a market in the initial stages of recovery.

Inventory levels continued to decline. There were 4,067 single family homes for sale at the end of July, down from 4,477 at the end of June. Condos experienced a similar decline, to 2,447 from 2,587. Inventory is now at its lowest point in more than 5 years.

The number of months of inventory - the time it would theoretically take to sell all the current properties on the market - now stands at 9.04 for single family and 16.9 months for condos. This is in stark contrast to last year at this time, when the figures were 26.2 months for single family homes and 35.4 months for condominiums. The trend is downward toward the figure of 6 months, which indicates a market in balance (anything below 6 months indicates a return to a seller’s market).

Prices have also returned to more realistic, sustainable levels, with the median sale price for single family homes at $185,000 in July 2009, compared to $190,000 in June and $250,000 a year ago. The median sale price for condos was $212,000 in July, compared to $250,000 the previous month and $252,500 a year ago. Pending sales also remained at very high levels, with 802 properties going under contract in July 2009. Pending sales have dropped off slightly from the 929 reported in May 2009 and the near record 981 pending sales reported in April 2009. But the total of 802 was still 37 percent higher than the 584 pending sales reported in July 2008.

Pending sales have now exceeded the 500 level for the 19th consecutive month, and the 800 level for the fifth straight month. Generally, pendings trend downward during the summer months, the slower sales season in our market. The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers during the month.

“Our local market is maintaining an encouraging level of sales volume and lower inventories,” said 2009 SAR President Bill Geller. “As we enter the traditionally slower season, we can expect some drop off in activity. But we still have the first-time home buyer tax credit of $8,000 on the table, and that expires on Nov. 30, 2009. We strongly encourage local Realtors’ to keep their clients informed about this and get them started in the real estate buying process in order to close the sales prior to the expiration date.”

Geller noted that as the national economy appears to be emerging from recession, according to most leading economists and the Federal Reserve Board, the local real estate market appears to be a leader in the recovery process.

“I’m very optimistic about our local real estate market, because we’ve always emerged strongly from down times in the past,” explained Geller. “We have it all here - great weather, beautiful beaches and green spaces, amazing cultural amenities, and an incredible selection of homes and condos. There are very few places in the nation that have all that we have to offer.”

The median price of all single family homes sold in the last 12 months was $172,000, compared to a median of $260,000 for the 12 months ending in August 2008. For condominiums sold in the last 12 months, the median sales price was $212,010, compared to last year’s figure of $332,000.*

*A 12-month rolling median price is not as susceptible to the volatility that can occur within any particular month, which sometimes results in drastic statistical swings up or down from one month to the next.

Cut Your Bills Now

Slash Your Energy Bills by $1,500 With These 4 Strategies

RISMEDIA, September, 2009-Most homes waste energy which costs homeowners plenty of money, but a new report in the latest issue of Consumer Reports lays out four strategies that together can cut energy bills by $1,500. The story examines ways homeowners can take their home’s energy efficiency to the next level through more-efficient product upgrades and additions as well as simple, low-cost and even no-cost upgrades and actions.

“Some of the simplest projects, such as adding insulation, sealing cracks and ductwork, can yield the biggest savings,” said Bob Markovich, home and yard editor of Consumer Reports. “But, according to our recent nationally representative survey, of more than 2,000 Americans, only 12% added or upgraded their home’s insulation in the past three years and just 5% had insulated their heating and cooling ductwork- quick fixes that save you money for years to come.”

Consumer Reports examined four key categories- heating and cooling, water, recycling, and electricity- and ordered them by potential money and energy savings based on national rates for electricity, gas, and water.

Heating & Cooling: Annual Savings $550- Approximately 40% of residential energy bills are for space heating and cooling- this is also the area homeowners can save the most. To eliminate leaks, use a combination of caulk, foam board, expandable sealant, and weather stripping. Check insulation levels; if the attic has less than 11 inches of fiberglass or rock wool or less than 8 inches of cellulose, you should probably add more. Compressed insulation loses its effectiveness, so don’t store anything on top of it. Sealing ductwork is the most frequently overlooked step. Spending $500 to seal leaky or poorly insulated ducts that run through crawl spaces, attics, or other areas that aren’t heated or cooled can save about $400 per year. A programmable thermostat is worth every penny. Automatically lowering the heating-system 5 to 10 degrees at night and during the day when no one is home can shave up to 20% off your heating costs.

Water Consumption: Annual Savings More Than $400- Almost four in five states anticipate water shortages by 2013, which could lead to steeper rates and penalties for excessive water use. Stopping drips is the fastest way to conserve, saving the average household $70 a year. Upgrade to water-efficient fixtures- low-flow showerheads can save as much as $265 per year on water bills and low-flow toilets can save $90. Also, watch the water heater; lower the temperature to 120 F and insulate hot-water pipes.

Electricity Use: Annual Savings $300- Electricity accounts for almost 40% of the average home’s energy use, but there are ways to cut back without sacrificing. By changing 10 bulbs and replacing three major appliances with energy-efficient models, hundreds per year can be saved. According to Consumer Reports’ survey, nearly two-thirds of respondents have replaced an incandescent light bulb with a compact fluorescent light bulb. Also, 34% of appliance owners have upgraded to an energy-efficient model. That number is likely to rise nationwide as states begin distributing rebates, expected later this year, that could reach $200 for each Energy Star appliance as part of the Obama Administration’s economic stimulus bill.

Recycling: Dollar Savings $250- Recycling saves the least money, but generated some of the highest results in the survey, with two-thirds of respondents recycling paper and plastic and over half recycling metal and glass. RecycleBank lets people put all of their recyclables in one container instead of separating them by type then it weighs the container and issues rewards or points redeemable at local retailers- the average households get $250 worth. “Pay As You Throw” programs, now in more than 7,000 communities, treat trash like a utility, charging homeowners for garbage they throw out. Don’t forget to redeem bottles; millions of dollars are unclaimed every year. Consumer Reports found that the most common reason for not recycling printer ink cartridges, furniture, and small appliances was that people didn’t think an item could be recycled, but just about everything can.

For more information, visit www.consumerreports.org.

Copyright© 2009 RISMedia, The Leader in Real Estate Information Services, All Rights Reserved. This material may not be republished without permission from RISMedia.

Top 5 Tips for Securing a Loan Modification

What You Should Know!

Like many Americans, you or someone you know may be behind on your mortgage payments due to a number of possible financial troubles. You’re not alone. As a member of the Top 5 in Real Estate Network, I am often asked if lenders will work with homeowners to modify their mortgage loans. The answer is often yes, but it will take some effort. Here are five tips for working with your lender to expedite a loan modification from top producing broker and real estate consumer advocate Ralph Roberts of Ralph Roberts Realty in Michigan.

1. Come Clean - It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Some homeowners are embarrassed; others try to fudge the numbers. However, only by laying all your cards on the table and disclosing the truth can you begin to attend to the root cause of your financial hardship and then develop and implement solutions that put you back on the path to long-term financial health.

2. Understand Your Lender’s Point of View - Regardless of how you ended up in the situation you’re in, blaming the lender or the mortgage broker or loan officer who placed you in your current mortgage does little good, unless you can prove your point in court. Usually, you have a better chance of resolving the problem by understanding your lender’s point of view, even if you don’t agree with it. Know that for lenders, it all boils down to money. If you can show them that modifying your loan cost them less than a foreclosure would, and they believe you will honor the terms of the loan modification, they are likely to approve it. If not, then they are likely to reject it. Lenders need to protect their own interests and carefully screen out ineligible applicants, which can often make the process much more difficult and frustrating for homeowners who genuinely suffer financial hardship and need a loan modification.

3. Keep a Cool Head - Understandably, homeowners often become frustrated and angry when seeking assistance from their lender. Unfortunately, anger can result in the following:

- Accidental disconnects: The customer service rep you’re speaking with may put you on hold permanently or hang up

- Lost files: Your file may get or

- Rejection: Your lender may decide that you are unreasonable and that foreclosing would be less costly overall.

- A bad offer: Your lender may offer a workout solution that is worse than what you would get had you been nice about it.

If you doubt your own ability to remain calm, cool, and collected during the entire process, consider hiring a professional to represent you.

4. Give Them What They Need - Prior to applying for a loan modification, call your lender or visit its website to obtain an application packet or a list of items you need to submit with your application. Find out exactly which forms you need to fill out and which documents your lender needs to process your application. Label everything clearly and legibly with your name and loan number and provide a checklist of all items you’re submitting in your application packet. Arrange the items in the order listed by your lender, so whoever is processing your application does not have to search for items. Include a cover page that lists your name and loan number in large print as well as an items-included list.

5. Ask For What You Want - Before discussing the terms of the loan modification with your lender, you should have a fairly clear idea of what you want and need. Answer the following questions for yourself. This will help you field questions from your lender:

- How much do you owe in late or missed payments?

- Can you catch up on the missed payments?

- Do you need additional time to catch up on missed payments?

- How much can you realistically afford to pay each month?

- Do you really want to keep your home or would you prefer to sell if you could walk away not owing anything?

Remember, an affordable loan modification can enable you to catch up on any missed payments, lower your monthly mortgage payment, and keep your house. To find out if you might be eligible for a loan modification, please e-mail me. Please also forward this important information on to any family members and friends who may find it useful.

Greg Hudson

Prudential Palms Realty

Top 5 in Real Estate Member

greghudson@prudentialpalmsrealty.com

www.SarasotaFloridaHomesOnline.com

First-Time Buyer - Get A Home Warranty

First-Time Buyers, Tighter Lending Requirements Spark Demand for Home Warranties

RISMEDIA, September 2009-A dramatically changing housing market dominated by first-time buyers, tightened financial lending requirements and higher down payments is intensifying consumer demand for home warranties, according to the Home Warranty Association of California (HWAC).

Stewart E. Miller, a member of HWAC Board of Directors, reports that the association anticipates that the large majority of home buyers in the near term will continue to be first-time buyers or investors at the lower priced segment of the market. “With new lending requirements, including higher down payments, many buyers may be strapped for cash. However, with a home warranty in place, new home owners who might otherwise pay for appliance and system repairs out of their own pockets will find those costs transferred to a third party home warranty company,” Miller said. Miller added that home warranties are taking on even more importance as so many properties today are exempt from seller’s disclosure statements because they are bank-owned and have been vacant for some time.

“Since there is no disclosure on these homes for sale, many are purchased somewhat blindly and the buyer may have limited knowledge of the conditions of systems and appliances covered by a home warranty contract. Home warranties cover normal wear and tear of home appliances and systems during the first year of ownership, but pre-existing conditions are not covered,” Miller noted.

He emphasized, however, that many banks now recognize the value of home warranties in this housing market environment and are increasingly providing home warranties as a major concession in order to move homes.

“Another factor sparking home warranty interest in today’s restrictive financing market is the rising cost of home appliances, notably hot water heaters and HVAC systems. Five years ago, a 40 gallon water heater cost about $250. Today, that same unit costs $450 to $500. Plus, there are more high-end appliances in homes today. So, without a home warranty, out of pocket expenses can increase,” Miller stated.

Miller concluded by noting that as long as loans are available primarily for lower-priced homes, home warranties will be in high demand as a means of reigning in home owner expenses.

Typically, a home warranty covers a home’s major operating systems and appliances against breakdowns due to normal wear and tear for one year after the close of sale. Items covered include plumbing, heating and electrical systems, most built-in appliances, and water heaters. In recent years, most HWAC member companies have provided additional coverage for plan holders for such items as garage door openers, washer/dryers, refrigerators, swimming pool/spa, roof, and miscellaneous upgrade coverages.

Copyright© 2009 RISMedia, The Leader in Real Estate Information Services, All Rights Reserved. This material may not be republished without permission from RISMedia.

My Friend Michele has some great ideas that I thought I'd share with you.

Are You Preventing Your Home From Selling?

by Michele Canora

Sep. 1, 2009

As a real estate professional I get to see the inside of a lot of homes. I also get to experience the reaction of potential buyers when they view a home. Some homes don't even get a chance to be seen because the buyers want to keep on driving if the yard and landscaping are in disarray. The most common turn offs to buyers are smell, clutter, cleanliness and paint colors. These are easy fixes and pretty inexpensive considering the payoff. A clean well kept home is very important. Most buyer assume if the sellers don't take care of what the buyers can see then they are not taking care of what the buyers can't see.

Below are tips to improve the appearance of your home. These tips could save you a few unwanted mortgage payments.

Is the roof free and clear from obstructions and moss?

Are the gutters clear and neatly hung?

Are the windows clean and free from obstructions (such as overgrown bushes or trees)?

Are bushes, trees and shrubs neatly pruned?

Are plants neatly pruned?

Is the bed free and clear of weeds?

Is the bed properly mulched?

Are flowers in bloom?

Is the lawn free from weeds?

Is the lawn free from grass clippings?

Is the lawn neatly edged?

Remove all clutter from the house.

Are countertops free and clear?

Have you removed unnecessary furniture throughout the house?

Remove the art gallery and coupon collection from the refrigerator.

Check the bathrooms. Are the surfaces clean and clear? Are shower curtains and doors hung properly? Is the flooring clean and fresh? Are towels neatly hung?

Check the walls. Is paint and wallpaper fresh and clean? Are the walls free from holes? Are there any colors or objects on the walls that need to be removed?

Check the floors. Is the carpet clean and free from stains? Are hard surface floors clean and free from stains?

Check windows and window coverings. Are all the windows clean? Are draperies and blinds clean?

Are there any signs that this is a pet's home? Be sure to clean and remove kitty litter, pet toys and bedding.

Try to air out the home prior to showings.

If air freshener is necessary, use well before showings as a consideration to those with allergies.

Before showings open draperies and blinds, turn on the radio to a classical music station, set the volume on low, if you have time, cook a batch of cookies to have the warm, welcoming aroma permeating the home.

Begin Clean & Green

Swing Into the School Year Clean and Green

RISMEDIA, August, 2009-For parents, back-to-school season is a blur of shopping for school supplies, coordinating schedules for extracurricular activities, and preparing children for a fresh start to the school year. The school year also brings with it extra laundry and stains from cafeteria spills, recess and sports game tumbles. When it comes to clean-up, nearly half of home laundry shoppers in a recent survey said that “environmental friendliness” was an important factor.

“I look for solutions that make sending my kids back to school convenient, easy on the wallet, and in line with the environmentally responsible way my family is trying to live,” said Jen Singer, lifestyle expert, author and founder of Mommasaid.net, an online resource for moms.

Mom’s Back-to-School Checklist

Singer hears from many moms concerned with making the transition from summertime to school time an easy process for the whole family, which is why she recommends the following convenient, affordable and green tips:

1. Give the environment and yourself a break. Make a deal with other parents to carpool the kids to dance or soccer practice. Not only will it save fuel and money, it will give each parent a break from sing-alongs and post-game muddy cleats.
2. Don’t sweat the small stuff. Laundry stains from sports games or running on the playground are inevitable, so use a stain remover that is trusted to eliminate stains.
3. Be smart with school supplies. Make a big difference with small changes. Buy recycled paper products, such as notebooks, notepads and pencils, and refillable pens.
4. Be a savvy shopper. Determine what’s necessary to buy new, what can be used from the last school year, and what hand-me-downs the younger ones can use. Don’t buy a new Cubs Scout hat if your neighbor has one to lend. And, spread out the shopping trips throughout the season when there’s a sale.
5. Carve out study space. Make sure your kids have an uncluttered spot where they can study without distractions. Whether your kids do math at the kitchen table or social studies in their rooms, they need a place where they aren’t interrupted by siblings or wooed by video games.

Copyright© 2009 RISMedia, The Leader in Real Estate Information Services, All Rights Reserved. This material may not be republished without permission from RISMedia.

Add Value to Your Home

Perk up Your Home in a Weekend

RISMEDIA, August 25, 2009-(MCT)-As summer draws to a close, home owners have home improvement on the mind. If you have been avoiding your around the home to-do list for fear that home improvement projects will take up too much time (that you don’t have), ShopSmart magazine has put together a list of projects that can be done in a weekend and for a relatively low cost.

-Replace house numbers with oversize numbers in a style that complements your home’s architecture. Cost: $1 to $40.
-Put out a welcome mat. You can change it with the seasons or use it to show your individuality. Cost: about $30.
-Clean up the landscaping by seeding bare spots in the lawn and pruning overgrown foundation plantings. If you decide to add shrubs around the house, choose varieties that won’t grow bigger than 3 or 4 feet, and plant taller bushes and trees at the edge of the house to frame it. Cost: about $150 for a small-scale planting.
-Paint the front door. Consider a bold color such as high-gloss red, forest green or black to call attention to the entry or complement a color on the trim or in the masonry. Cost: about $30.
-Hang a door knocker. You can choose from classic designs, bold rings or whimsical motifs. Cost: about $75.
-Put up window boxes. Wood boxes can be customized with paint or stain; synthetic boxes require no maintenance. Cost: about $50.
-Add some potted plants near the door and along walkways. Cost: $50 to $100.
-Replace the doorknob. If you stick to the same size as the existing handle, it’s an easy do-it-yourself job. Cost: about $100.
-Upgrade the lighting. A hanging or wall-mounted fixture near the door is like jewelry, and lighting in the yard adds interest. Cost: $25 to $150.
-Replace the mailbox, or touch up the rust spots with paint. Cost: $50 to $100.

(c) 2009, Akron Beacon Journal (Akron, Ohio).
Distributed by McClatchy-Tribune Information Services.

2nd Quarter Sales Rise

2nd Quarter Existing-Home Sales Rise in Most States, Helped by Affordable Metro Prices

RISMEDIA, August 18, 2009-Existing-home sales in the second quarter showed healthy gains from the first quarter in the vast majority of states, and price declines have increased affordability in most metro areas, according to the latest survey by the National Association of Realtors®.

Total state existing-home sales, including single-family and condo, rose 3.8% to a seasonally adjusted annual rate of 4.76 million units in the second quarter from 4.58 million units in the first quarter, but remain 2.9% below the 4.90 million-unit pace in the second quarter of 2008.

Thirty-nine states experienced sales increases from the first quarter, and nine states were higher than a year ago; the District of Columbia showed both quarterly and annual rises.

Lawrence Yun, NAR chief economist, said the sales gain appears to be sustainable. “With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,” he said. “There have been sustained sales gains in Arizona, Nevada and Florida, as well as diverse areas such as Maryland, the District of Columbia and Nebraska. More recently, we’ve seen strong double-digit gains in Idaho, Utah, New Mexico, Washington, Hawaii, New York, New Jersey, Maine, Vermont, Wisconsin, Indiana, South Dakota and Montana.”

Yun explained housing’s impact on the overall economy. “Given the need for related goods and services, each home sale pumps an additional $63,000 into the economy- that’s how the housing engine traditionally pulls us out of recession. In addition, sales are drawing down inventory and that will help stabilize home values, which in turn will lessen foreclosure pressure and boost credit availability for other sectors of the economy.”

During the second quarter, 129 out of 155 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the second quarter of 2008, while 26 areas had price gains. Distressed sales - foreclosures and short sales - accounted for 36% of transactions in the second quarter, which continued to weigh down median home prices because they typically are sold at a 15% to 20% discount; first-time buyers accounted for one-third of transactions. The national median existing single-family price was $174,100, which is 15.6% below the second quarter of 2008. The median is where half sold for more and half sold for less.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage declined to a record low 5.03% in the second quarter from 5.06% in the first quarter; the rate was 6.09% in the second quarter of 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are unique opportunities in the current market. “Housing affordability is hovering near record highs and there’s a wide selection of homes, but first-time buyers need to move quickly to take advantage of the $8,000 tax credit because they have to finalize the transaction by November 30,” he said. “Various state, local and nonprofit programs target first-time buyers, and a Realtor can help you identify the programs and financing options that are currently available in your area.” The largest sales gain between the first and second quarters was in Idaho, up 67.5%; followed by Hawaii which rose 24.2%; New York, up 22.3%, Wisconsin; with a 21.7% gain; and Nebraska with a 20.3% increase. Twelve other states experienced double-digit sales increases from the first quarter. Year over year, California, Minnesota and Michigan are showing double-digit gains from the second quarter of 2008 but are off from the first quarter of this year.

The largest single-family home price increase in the second quarter was in the Davenport-Moline-Rock Island area of Iowa and Illinois, where the median price of $113,200 rose 30.6% from a year ago. Next was the Cumberland area of Maryland and West Virginia at $123,500, up 21.7% from the second quarter of 2008, followed by Elmira, N.Y., where the median price increased 11.3% to $85,000.

“The sharpest price declines continue to be concentrated in metros with high levels of foreclosures, including areas in California, Florida, Arizona and Nevada, where distressed homes comprise many of the transactions,” Yun said.

Median second-quarter metro area single-family home prices ranged from a very affordable $55,700 in the Saginaw-Saginaw Township North area of Michigan to $569,500 in Honolulu. The second most expensive area in the second quarter was the San Jose-Sunnyvale-Santa Clara area of California, at $500,000, followed by San Francisco-Oakland-Fremont at $472,900.

Other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania at $71,500, and Lansing-East Lansing, Mich., at $81,200.

“Recently sold homes are concentrated in lower price ranges. The median price may not be representative of overall values in a given area because many middle priced homes are not on the market,” Yun clarified.

In the condo sector, metro area condominium and cooperative prices- covering changes in 57 metro areas- showed the national median existing-condo price was $176,900 in the second quarter, down 19.8% from the second quarter of 2008. Four metros showed annual increases in the median condo price and 53 areas had declines. The metros with condo price rises were the Virginia Beach-Norfolk-Newport News area of Virginia and North Carolina at $195,000, up 2.6%, followed by the Wichita, Kan., area, where the median price of $109,500 rose 2.0% from the second quarter of 2008, Dallas-Fort Worth-Arlington, at $137,800, up 0.7%, and the Colorado Springs, Colo., area, which rose 0.2% to $145,200.

Metro area median existing-condo prices in the second quarter ranged from $66,400 in Las Vegas-Paradise, Nev., to $405,700 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was Honolulu at $318,400, followed by Boston-Cambridge-Quincy at $277,400. Other affordable condo markets include the Sacramento-Arden-Arcade-Roseville area of California at $101,200 in the second quarter, and Tucson, Ariz., at $102,500.

Regionally, existing-home sales in the Northeast jumped 15.0% in the second quarter to a pace of 797,000 units but are 8.4% below a year ago. The median existing single-family home price in the Northeast declined 9.7% to $246,000 in the second quarter from the same quarter in 2008. After Elmira, the best gain in the region was in Buffalo-Niagara Falls, N.Y., where the median price of $115,400 rose 6.7% from the second quarter of 2008, followed by Syracuse, N.Y., at $124,600, up 0.8%.

In the Midwest, existing-home sales rose 3.2% in the second quarter to a pace of 1.06 million but are 5.3% below a year ago. The median existing single-family home price in the Midwest was down 8.6% to $146,800 in the second quarter from the same period in 2008. After Davenport-Moline-Rock Island, the next strongest metro price increase in the region was in Bismarck, N.D., where the median price of $157,800 was 3.5% higher than a year ago, followed by Springfield, Ill., at $116,200, also up 3.5%, and Topeka, Kan., at $113,300, up 2.7%.

In the South, existing-home sales increased 3.9% in the second quarter to an annual rate of 1.76 million but are 7.2% lower than the second quarter of 2008.

The median existing single-family home price in the South was $158,600 in the second quarter, down 10.3% from a year earlier. After Cumberland, the strongest price increase in the region was in Beaumont-Port Arthur, Texas, with an 11.0% gain to $138,600, followed by, Jackson, Miss., at $140,100, up 8.2%, and Shreveport-Bossier City, La., at $146,800, up 3.0%.

Existing-home sales in the West declined 2.3% in the second quarter to an annual rate of 1.13 million but are 11.8% above a year ago.

The median existing single-family home price in the West was $212,600 in the second quarter, which is 26.6% below the second quarter of 2008. The best metro price performances in the West were in Kennewick-Richland-Pasco area of Washington, where the median price of $163,900 rose 0.3% from a year earlier, and Yakima, Wash., at $162,800, also up 0.3%. No other areas covered in the region reported increases.

For more information, visit www.realtor.org.

First-Time Homebuyers Have Unique Advantage in Mortgage Market

First-time homebuyers and those thinking about refinancing are in a great place.

Mortgage rates just fell for the third straight week, according to mortgage finance firm Freddie Mac.

“The credit markets are still tight, but they have loosened up significantly from 90 days ago,” said Scott Norman, vice president of the Texas Mortgage Bankers Association.

So is this a good time to enter a mortgage transaction? It might be, if you can qualify. “The two biggest issues are going to be credit and down payment,” Norman said. “Those are really going to trigger your ability to get a mortgage in a decent amount of time.”

Here’s what you’re up against in specific mortgage situations and what you can do to increase your chances of getting a deal done.

If you’re buying a home
Get ready for paperwork. Have your bank statements, W-2 wage and tax statement and pay stubs organized.

“Overdocumentation is the name of the game right now,” said Linda Davidson, senior loan officer at Service First Mortgage in Garland, Texas.

Having all the documents upfront will speed the application process.

Check your credit score. The most widely used score is the FICO, which ranges from 300 to 850. Your score, based on information in your credit report, helps lenders predict how likely you are to make your payments on time. The higher the number, the better the chance you’ll be approved for a loan at a low interest rate. “Clean up your credit score,” Norman said. Catch up on any late payments and pay off or pay down your debt.

First-time buyers have a sweetener in the form of an $8,000 credit on federal income taxes for homes purchased before Dec. 1.

It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a 10% down payment, said real estate agent Brenda Rogers of Coldwell Banker Apex, Realtors in Plano, Texas.

If you’re refinancing
“Have plenty of equity,” Rogers said. Equity represents the ownership value you’ve accumulated over time by making payments, and lenders want you to have a financial stake in the refinancing. “The lender doesn’t want to lend 100 percent of the value of the property,” said Norman, of the Texas Mortgage Bankers Association.

Another reason to build equity is that you don’t want to owe more on your home than it’s worth, a situation some homeowners face today.

Also, consider how long you plan to remain in your home, because you need to stay long enough to recoup closing costs associated with refinancing. Those costs typically will total $3,000 to $5,000, said Davidson, of Service First Mortgage. “If you’re going to move out of your home in five years or less, then typically it’s not going to be worth your doing,” she said. “If you plan on staying longer than that, then we need to look at the costs vs. the monthly savings to see how long it will take to recoup that cost.”

Sometimes things outside your control can affect your attempt to refinance.

Rachel Kelley of Plano said she’s been trying to refinance with Bank of America, which last year acquired her original lender, Countrywide Financial Corp. Kelley, a medical writer, ran into financial trouble after her work was cut to part time. “I cannot afford my house payment anymore,” she said. She said her repeated attempts to get more information from Bank of America on how to refinance her home through the Obama administration’s Making Home Affordable refinancing program have been unsuccessful. “I spoke to several people, trying to get information about the program and what I needed to do to refinance,” Kelley said. “It is very likely I will be behind on my payments in the near future due to their inability to get me the proper information on time in order to refinance.”

Loan modifications
A loan modification is when a lender changes the terms of your loan so you can afford your payments.

That can be done by lengthening the term of your loan, lowering your interest rate or allowing you to skip payments and adding those to the end of your loan.

The Obama administration is prodding mortgage-servicing companies to bolster their efforts to modify troubled loans. The servicer is the company that collects and processes your mortgage payment. It may or may not be your original lender.

If you’re having trouble making your payment, contact your servicer immediately and ask about a loan modification.

By George W. Mantor for RISMEDIA

Market Issues: Rock, Paper, Scissors…Which Bills Should I Pay This Month?

RISMEDIA, August 13, 2009-As our economy continues to stagnate, more and more Americans are faced with the challenge of picking which bill(s) they should pay or not pay because they just don’t have enough money to cover them all. The question often revolves around which bill(s) is the most important to pay “now:” their mortgage/rent, car payment, utility bills, cable bill or credit cards? Although this seems like a fairly straightforward answer, for many Americans, it’s not as black and white as you would think.

Many different things impact these decisions, such as necessity, amount of money owed and perceived consequences of not paying. Intuitively, paying your mortgage/rent and car payment first seems like the easy answer. However, many Americans are faced with the dilemma that the value of their homes and cars are currently less than the amounts they owe. As a result, many believe they have no alternative but to turn the keys over and walk away.

We believe it’s important that consumers are fully educated, prior to making these decisions, regarding the impact these decisions may have on their credit profile in both the short- and long-term. All too often, an uninformed decision can result in a worse-than-expected result and a negative impact to their credit score.

There may be several steps a family can take to tighten their belt while strategically considering the best options that meet their needs and have the least negative credit score impact. In many cases, it all starts with making a list of their debts as they are today and then building a plan. Each debt is reviewed to identify any and all options for reducing the monthly payment (interest rate change, term change, debt consolidation, selling of respective asset, etc). Several reputable services offer a personal coach and online tools to help consumers with tips on building their plan. It takes a little work, but when it’s all done, it is typically well worth the time and effort.

In the majority of foreclosures/defaults occurring across the United States, one of borrowers’ biggest mistakes is that they never contacted their lender. Home loans typically have the biggest overall impact on credit scores. If a consumer is struggling to maintain their house payment, the first steps should be to:

1) Contact their home loan servicer or lender
2) Explain their challenge
3) Ask them to assist with finding any available solutions

Home interest rates are at their lowest point in years and, for some homeowners, simply refinancing their first and/or second mortgage will be the best option. However, lenders have more options at their disposal today than ever, including HASP (the Homeowners Affordability and Stability Plan), so there are multiple ways they can help consumers in lieu of foreclosing.

Regardless of their personal situation, each individual has an opportunity to take the guesswork out of the process and then begin to understand their options to more effectively manage their credit and debt. The key to the process is to become proactive because the importance of building a plan to evaluate and optimize your existing debt and credit has never been greater. The good news is that options and services exist to help you weather this storm.