The Treasury Department recently released its Home Affordable Modification Program Guidelines (part of its Making Home Affordable initiative), which include eligibility requirements to determine which homeowners qualify for relief under the plan. Following are the eligibility requirements as specified in the guidelines: Mortgage must have originated on or before January 1, 2009. Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties. Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law). Home may not be vacant or condemned. ... 05/11/2009

When the real estate bubble burst, so too, did the dreams of many speculators who were snatching up and flipping condos like hotcakes. Today, buying a condo can still be a great choice but getting financing for it could be a bit more challenging because some financial institutions are "blacklisting" some condo complexes due to high speculator ownership and dropping prices. According to a recent Marketplace report by Dan Grech, government-backed Fannie Mae and other banks in states such as Michigan, California, Florida, and Nevada are refusing to lend to credit-worthy potential buyers who are interested in purchasing condos in certain complexes that may have either high speculator ownership or freefalling prices. "If no one can get financing, no one can buy the available units; eventuall... 05/08/2009

In talking to real estate folks from around the country one of the common themes I have heard is that so many buyers are "sitting on the fence." They just don't know whether to get into the market now or not. Clearly, they lack sufficient incentive. (It wouldn't be surprising if this same lament is to be heard among stock brokers.) One thing, though, is for sure: there are trillions of dollars (that's trillions with a T, not billions with a B) sitting on the sidelines looking for a smart and profitable place to be. They are waiting for a sufficient incentive to move into this market or that. It is a stated and worthy goal of the current administration to bring stability to the housing market. So far, however, the main focus of the administration's efforts has been on trying to keep thin... 05/07/2009

Landscaping can be the perfect way to increase the value of your home by a whopping 7 to 19 percent. According to the National Association of Realtors, one thing that all home buyers want is trees.  Mature trees and bushes, which take from five to seven years to mature, offer 100 percent return on the money spent to add them to the landscape. They can even be the difference between breaking even on the sale of your home and making a profit. If you're planning to add some new plants to your home's landscape, don't do it haphazardly. One option is to hire a professional landscaper who will look at the whole yard and create a plan.  A second option is to go to local garden shops and get advice from them. You want to be sure to have the proper plant in that perfect location. You need to con... 05/07/2009

As stress closes in from all sides, spring, with promises of summer fun, offers welcome relief. Just make sure that your preoccupation with economic crises and pandemic threats does not distract you from the dangers that these warm seasons can bring to your property. During National Summer Safety Week (May 1-7), we are encouraged to adopt strong water safety habits which automatically kick in when we, or those we love, are near water—at the beach, at the cabin or in the backyard pool. Join this concerted effort to save the more than 400 Canadians who may otherwise drown this year. According to Safe Kids Canada, the equivalent of two classrooms full of children die annually from preventable drowning. Although the number of fatalities has decreased gradually each year, drowning remains th... 05/06/2009

(Money Magazine) -- 1. Finding one has become easier You don't need to show up at courthouse auctions or comb through legal filings. These days many banks sell foreclosed homes through real estate agents. To find listings, look on sites that specialize in foreclosed properties, such as realtytrac.com and foreclosurepoint.com. The local multiple-listing service often has selections as well. (The fact that the home is in foreclosure is not always highlighted in the MLS, but it's often mentioned in the description.) Finally, some agents specialize in foreclosures, so call your local realtor's office and ask for a referral. 2. It's best to buy from a bank If you buy a foreclosed home at an auction before the bank repossesses it, you'll have to pay in cash, and you usually cannot inspect the... 05/05/2009

Is purchasing a new home something you've always wanted to do but felt you couldn't afford? Well, now may be the time when you can take steps to get that new home you've always dreamed of. According to the Department of Commerce, prices are down 13.5 percent from December of 2007. Add to that tax credits, low interest rates, and even special incentives from new-home builders, and buyers now have ideal financing conditions. First things first. Be sure to get a mortgage contingency built in to any contract. This is vitally important in this day and age when getting a mortgage is not always an easy thing to accomplish. Two good financial options for today's new-home buyers are FHA loans and Builder and Developer Loans. FHA loans have some great features to offer the new home buyer: A small... 05/05/2009

When most people buy a home, they take out the standard 30-year mortgage to finance the purchase. A few ambitious souls opt for 15- or 20-year mortgages, so they can pay off their homes faster, save money, and retire early. When you start talking about 40- or 50-year mortgages, many homeowners simply cannot wrap their brains around the idea of paying on a house for over half their lives. But this can be a great foreclosure prevention strategy. I almost always advise homeowners to stretch out their mortgage for as long as possible. Here’s why: Keeping the monthly mortgage payment as low as possible protects homeowners in the event of future financial setbacks. You can make extra payments toward principal whenever you have surplus income, which will shorten the term. Back in the 1980’s, m... 05/04/2009

There is a man on a mission to prevent clothes dryer fires in Chicago.   He is a dryer vent cleaning and dryer exhaust specialist who is concerned with the safety of consumers and business owners in his community.  Some say he is constantly ranting, raving and "venting" about dryer vent cleaning.  The Chicago Wizard vents:   Dryer Vents and Ducts    Your clothes dryer requires proper air-flow in order to do its job efficiently.  The dryer vent and exhaust duct is responsible for removing heat, moisture and lint from your laundry as it dries.  Hot moist lint that escapes the lint screen often ends up stuck to the sides of the dryer exhaust duct; though some will make it to the vent outdoors.   Dryer vents and ducts are also responsible for removing gas by-products from your home; if you ... 05/02/2009

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending April 30, 2009, down from last week when it averaged 4.80 percent. Last year at this time, the 30-year FRM averaged 6.06 percent. The 30-year FRM now equals the record low that was set the week of April 7, 2009. It has never been recorded lower in Freddie Mac’s survey, which goes back to 1970. The 15-year FRM this week averaged 4.48 percent with an average 0.7 point, unchanged for the third week in a row. A year ago at this time, the 15-year FRM averaged 5.59 percent. This is tied with the last two weeks for the lowest the 15-year FRM has been since Freddie Mac began... 05/01/2009

Markets are governed by the laws of supply and demand. We have learned that in school, read it in the newspapers, and experienced it in real life. The problem with the housing market today, we know, is not a lack of supply. There are plenty of homes available. The problem is on the demand side. In housing, the demand side has two components. First of all, there must be willing and able buyers. But, for there to be able buyers, there must also be financing available. So far, the primary focus of government efforts has been on the financing component. Billions of dollars have been and will be spent on shoring up banks and institutions such as Fannie Mae and Freddie Mac, all in an effort to get credit flowing into mortgage markets again. To date, the success of these efforts has been only ... 04/30/2009

In today's sluggish market, a concept that isn't new is coming back into play. It is the short sale and can occur before or during foreclosure. A short sale is an agreement between the homeowner/borrower, his lender, and the new purchaser, whereby the home is sold for less than the amount owed on it. Even though the homeowner and the prospective purchaser may be able to come to an agreement on a price, the lender has the final decision of whether to accept the short sale or not.  Since the post-sale balance is forgiven, the lender may incur a large loss on a short sale and must compare this to the cost they will incur to clean up and market a house in foreclosure. Even when the bank initially refuses a short sale, the broker may still be able to negotiate an acceptance by preparing a Fo... 04/30/2009

The annual homeowner association meeting convenes. The president announces that the floor is open for nominations. A fellow homeowner say to you, "You know, you would make a good board member." Before you have a chance to reply, some body movement indicates that you are willing, ready and able to serve. "The nominations are closed," a vote is taken, and suddenly YOU ARE ON THE BOARD OF DIRECTORS. You ask yourself, "What does being on the board mean, who is going to teach me and how much do I get paid?" Here are some basic guidelines on how to become a successful board member and enjoy it at the same time...a lesson in HOA responsibilities and practices. What does it mean to be on the board? You have made a commitment that you will serve the HOA's interests to the best of your ability, b... 04/29/2009

NEW YORK (AP) -- Home prices dropped sharply in February, but for the first time in 25 months the decline was not a record, another sign the housing crisis could be bottoming. The Standard & Poor's/Case-Shiller index released Tuesday showed home prices in 20 major cities tumbled by 18.6% from February 2008. That was slightly better than January's 19% and the first time since January 2007 the index didn't set a record. The 10-city index slid 18.8%, the first time in 16 months its decline was not a record. But the good news was mixed. All 20 cities in the report showed monthly and annual price declines, but half recorded annual records. Prices fell by more than 10% in 15 cities, including Las Vegas, San Francisco and Phoenix. In fact, Phoenix home prices have lost more than half their val... 04/28/2009

Advertising has taught us to seek the best when we are looking for a good or service. When we are looking for an agent to find or sell a home, our most valuable asset, this should be true as well. Finding the perfect real estate agent begins with finding candidates from which you can make a selection. Referrals from other satisfied clients, the yellow pages, newspaper ads, open houses or free seminars are all good ways. Once you've found some candidates, interview each one before making your choice.  First, ask to see their resume. Their credentials should include continuing education to keep abreast of what's new in the realty world as well as participation in community activities. Membership in the National Association of Realtors is a plus since the NAR requires members to take perio... 04/28/2009

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 23, 2009, down from last week when it averaged 4.82 percent. Last year at this time, the 30-year FRM averaged 6.03 percent. The 15-year FRM this week averaged 4.48 percent with an average 0.7 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 5.62 percent. This is tied with last week for the lowest the 15-year FRM has been since Freddie Mac began tracking it in August 1991. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.85 percent this week, with an average 06 point, down from last week when it aver... 04/27/2009

Investors looking to acquire houses through short sales just might be in for some good news. One of the largest holders of second liens in the U.S., the Bank of America, says it's relaxing its policy on payoffs connected with short sales. That's important because large banks have been major impediments standing in the way of thousands of short sales, demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure. Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics. The company's policy was blunt: Pay us 10 percent of what the homeowners owed on the equity line balance or second mortgage, or we won't sign off on the short sale, w... 04/24/2009

If hard times has you renting out that empty room for some fast cash, you could be opening the door to a lot more cost, not less. The Insurance Information Network of California (IINC) says financially strapped homeowners renting out rooms to help pay the mortgage or other costs may be overlooking key issues that could lead to greater financial hardship. Community, rental rules Like opportunistic homeowners renting space to visitors in town for special events or even like charitable homeowners housing temporary disaster victims down on their luck, struggling homeowners looking for a fast buck should check for community, legal and insurance repercussions. Renters who sublet, owners who live in communities governed by homeowners associations, zoning violators and others living under certa... 04/23/2009

Every once in awhile, a little history lesson is in order... We hear it said everywhere that the American Dream is to own your own home and the land it sits on. From pioneer days, when Americans gave up their known way of life and endured endless hardship to travel west for their own piece of land, owning has been the better option. By owning your home, you have what every homeowner strives for: equity. Homeowners, for at least the last century, have been able to sell their homes and see some profit.  Since World War I there have been two dramatic upturns in home values. Once was in the 1940's and the second has been in the last decade. During this time, homeowners have been able to base their economic security on the fact that even if their house didn't appreciate in value, at least i... 04/23/2009

Loan modification is a no-brainer for lenders. They essentially have the following choices: Loan modification Foreclosure Forbearance Deed in lieu Short sale All things being equal, offering a loan modification to borrowers is usually the best option for lenders, because they avoid the high cost of foreclosure (by some estimates $50,000 to $100,000 per foreclosure) and they continue to collect interest on the loan – at a lower rate of return, but still enough to earn a profit. Unfortunately, in many cases, another factor comes into play – mortgage insurance. If a loan is FHA- or VA-secured or the owners are paying PMI (private mortgage insurance), the lender stands to lose much less from foreclosure, because the insurance will make up a portion of the difference. In other words, the len... 04/22/2009