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Wednesday, December 12, 2012
Homeowners’ Equity Reaches Highest Level in Four Years
Friday, December 7, 2012
Monday, November 26, 2012
Tuesday, November 20, 2012
Wednesday, November 14, 2012
Market update for Roseville & Rocklin Ca.
The current market in the Roseville and Rocklin area is very good. We have seen the price per sqft increase 15.5% in Roseville and 13.9% in Rocklin. There are several reasons for this. One reason is the lack of inventory that we are seeing currently. We have a high demand coming from three areas, first time buyers, investors and those who did a short sale or lost their home 3-5 years ago and are back in the market. (supply and demand is pushing the prices up).
If you know someone who is in need of selling their home or if you have been thinking about it, feel free to contact me and I'll be happy to go over the stats with you.
Thursday, November 1, 2012
Fast Fixes for Common Gutter Problems
By: Pat Curry
Gutters are designed to do one thing — channel water away from the foundation— and they’re critical to protecting the structural integrity of your house. But in order for gutters to do their job properly, they have to be kept in shape and free of clogs, holes, and sags.
Luckily, most common gutter problems are easy for homeowners to fix themselves. And it’s worth the effort. “Gutters are one of those things where routine maintenance and inspecting them can really prevent bigger problems down the road,” says Jason Stutzman, director of home maintenance and repair for Brothers Redevelopment in Denver.
Here are the gutter problems that the pros see most often, and the recommended solutions.Clogged gutters
This is the most common problem of all. Left untended, gutters and downspouts get so clogged with debris that they’re rendered useless. The excess weight of leaves, twigs, and standing water can also make them sag and pull away from the fascia.
Clean them at least once a year, and twice a year if you have a lot of trees nearby. Gary Mindlin, managing partner of New York City-based Top Hat Home Services, schedules gutter maintenance four times a year, with additional checks after big storms. You can clean your own gutters if you’re comfortable on a ladder, don’t mind getting wet and dirty, and don’t have an extremely tall house. After you’ve cleared the muck, flush them with a garden hose to make sure they’re flowing properly. If you’d prefer, you can hire someone to do the job for you for between $50 and $250, depending on the size of your house. Another option for dealing with chronically clogged gutters is to outfit them with gutter covers. These include mesh screens, clip-on grates, and porous foam. They still need regular maintenance, though, and the cost can be more than the gutters themselves.Sagging gutters and gutters pulling away from the house
This is usually a problem with the hangers, the hardware that secures the gutters to the fascia. They might have deteriorated over time, the fasteners may have backed out of the wood, or they’re spaced too far apart to support the weight of full gutters. The cost to fix it yourself is cheap; hangers generally cost $10 or less apiece, and the fasteners run about $1 each.
Leaks and holes
Leaky gutter joints can be sealed by caulking the joint from the inside with gutter sealant, says John Eggenberger, vice president of training and corporate development for the Mr. Handyman franchise of home repair companies. A tube costs about $5. Very small holes can be filled with gutter sealant. Larger holes will require a patch. If you can’t find a gutter patching kit at the hardware store, you can make a patch from metal flashing.
Improperly pitched gutters
Gutters need to be pitched toward the downspouts for the water to flow properly. You want at least a quarter inch of slope for every 10 feet. Get on a ladder after a rainstorm and look in the gutter; if there’s standing water, it’s not pitched properly.
To correct this yourself, you’ll need to measure from the peak to the downspout. Snap a chalk line between the two and find the spots where the gutter is out of alignment. You might be able to push it up into place by bending the hanger. If that doesn’t solve the problem, you might need to take a section down and rehang it. If you have seamless gutters, call the company that installed them to correct the problem.Downspouts draining too close to the foundation
Downspouts need to extend several feet from the house, or they’ll dump right into the basement. Gutter extensions attached to the bottom of the downspout will discharge water well beyond the foundation. They’re inexpensive and easy to install. “I like the downspout material extended four or five feet and screwed on,” says Reggie Marston, president of Residential Equity Management Home Inspections in Springfield, Va. Cost: less than $20 per downspout.
Missing gutters
If your house has no gutters at all, consider investing in a system. The cost depends on the material. Most residential gutters are aluminum, which is lightweight and durable. “Unless an aluminum gutter is damaged by something, it will last forever,” says Scott McCurdy, vice president of Jacksonville, Fla.,-based disaster repair contractor Coastal Reconstruction. Vinyl, galvanized steel, and copper also are available options.
Aluminum gutters range from about $4.50 to $8.50 per linear foot installed. On a 2,000-square-foot house with about 180 linear feet of gutters, that’s roughly $800 to $1,500.Monday, October 29, 2012
Housing Recovery Picks Up, But Challenges Await
Rising home prices across the country are giving a long-awaited boost to the housing market, but fiscal uncertainties could make the recovery a “bumpy ride,” according to economists who spoke this week at a webinar sponsored by the National Association of Home Builders.
Builders continue to experience challenges in obtaining credit for new projects, and potential buyers are also still struggling to qualify for mortgage loans due to tightened underwriting standards in place the last few years. The economists also cited the challenges of appraisals coming in lower than the agreed-upon sales price and a limited inventory of developed lots in certain housing markets. Another factor potentially jeopardizing the speed of the recovery, the economists added, are pending tax increases and spending cuts that are set to take effect in January.
Despite the challenges, the economists mostly remained optimistic about the outlook for the real estate market. Mark Zandi, chief economist for Moody’s analytics, forecasts that mortgage rates will stay low, the availability of housing credit will improve as private mortgage lending picks up, and the job market will gain traction as policymakers resolve fiscal issues and the uncertainties facing the market.
Robert Denk, NAHB’s assistant vice president for forecasting and analysis, said that nationwide housing starts are projected to return to 55 percent of normal production by the end of next year, and reach 70 percent of normal levels by the end of 2014. The hardest-hit housing markets — such as Arizona, Florida, Nevada, and California — still have a long way to go for making up appreciation losses during the housing crash. However, energy-producing states — such as North Dakota, Texas, Oklahoma, Montana, and Wyoming — are expected to return to normal levels in housing production by the end of 2014, Denk said.
Friday, October 19, 2012
Foreclosures Drop to 5-Year Lows
Foreclosures continue to do the opposite of what most analysts had predicted: They keep falling rather than rising.
Foreclosure filings in September fell 7 percent from August and are down 16 percent from last September, RealtyTrac reported Thursday. Foreclosure filings include default notices, scheduled auctions, and bank repossessions.
The number of foreclosure filings in September reached their lowest level since July 2007. What’s more, foreclosure filings have decreased 13 percent in the third quarter compared to the third quarter of 2011, marking the ninth consecutive quarter with an annual decrease in foreclosure activity, RealtyTrac reports.
“We’ve been waiting for the other foreclosure shoe to drop since late 2010, when questionable foreclosure practices slowed activity to a crawl in many areas, but that other shoe is instead being carefully lowered to the floor and therefore making little noise in the housing market — at least at a national level,” says Daren Blomquist, vice president at RealtyTrac. “Make no mistake, however, the other shoe is dropping quite loudly in certain states, primarily those where foreclosure activity was held back the most last year.”
A backlog of delayed foreclosures in certain states may be problematic in some areas soon, Blomquist says, particularly in judicial states, where foreclosures must be approved by a court. Florida, Illinois, Ohio, New Jersey, and New York have posted the largest year-over-year increases in foreclosure activity.
Meanwhile, other states are seeing large drops in foreclosure activity, mostly centered in “non-judicial” states, where foreclosures do not have to be court-approved. For example, states like California, Georgia, Texas, Arizona, and Michigan have posted large drops in foreclosure activity.
Source: RealtyTrac
Wednesday, October 10, 2012
Five Year Forecast: Prices Will Rise 8.5 to 22 Percent
Nominal house prices will continue to rise for the UFA 100, a broad based composite index of 100 US cities. Under current economic conditions commonly used house price indices will rise between 8.5 and 22 percent cumulatively over the next five years, but recovery will be slow for the larger metro areas in the Case-Shiller 10 city composite.
Tuesday, October 9, 2012
Baby Boomers Change Retirement – and Housing
by CJ Yeoman, Writer/Editor
And this is creating a HUGE opportunity for real estate professionals. How will you take advantage of it?
Busting out
Our friends at the KCM Blog say “Baby Boomers [are] About to Bust Out of Homes,” detailing the positive aspects of the booming numbers of these seniors who will be deciding where to spend their retirement years.
Of course, there’s the reality they may be forced to continue working because they have either lost value in their retirement nest eggs or they have not saved like they should have. But we’re talking here about those who are now deciding how they will be housed when they retire.
According to a recent study from the Center for Housing Policy (quoted by KCM), the homeownership rate exceeds 80 percent for those aged 65 to 84, and the typical homeowner has an average of $150,000 in home equity. Even those with a mortgage have an average of $93,000 in equity – so the ability to sell their home is not impacted by negative equity.
The Bipartisan Policy Commission says people over 65 “release much more housing than they absorb,” such as when they move in with their children, move into independent living facilities or nursing homes, or pass away.
“Between 2000 and 2010, people who began the decade aged 55 and over released over 10.5 million housing units (net). Most of these releases involve owner-occupied dwellings ….”
So as seniors are getting ready to make these decisions, will they have qualified real estate professionals to assist them?
Retirement assumptions going by the wayside
Tom Kelly of Inman News writes frequently on second-home purchases and says seniors will play a key role in the housing recovery. He figures nearly 5 million seniors are expected to buy and/or sell property in the next three years. With many of them boasting a “ton of equity,” seniors plan on buying their next home with cash, negating the effects of today’s horribly strict mortgage underwriting.
How many? Try 94 percent, according to the Market Enhancement Group, a Southern California real-estate research team.
The other surprise finding is that in 2010, only 1.6 percent of retirees between the ages of 55 and 65 moved across state lines. Florida is no longer the retirement haven it once was … and maybe no one state will take its place. Kelly says, “More retirees are opting to stay near where they once worked, moving out of the pricey real estate metro areas to places an hour or two outside of the city, where real estate prices and taxes tend to be cheaper.”
Also, boomers are not as willing to give up the cultural amenities they find in larger cities – or the better health-care providers. And why move far away from children and grandchildren you will need as a support system in later years?
Thursday, September 20, 2012
California consumer confidence at a 5-year high
The California Composite Index of Consumer Confidence increased to 94.2 in the third quarter of 2012 compared with the second quarter revised reading of 89, according to Chapman University. Consumer confidence has been increasing steadily since hitting a low of 57.6 in the second quarter of 2008 and has been hovering between readings of 80 and 90 since the first quarter of 2010. The current reading of 94.2 is the highest overall consumer confidence since the beginning of the recession in the fourth quarter of 2007. An index level below 100, however, reflects a higher percentage of pessimistic consumers versus those who are optimistic.
The California Composite Index is generated based on three indices: Consumers’ outlook on current and future economic conditions, and an index measuring consumers’ spending plan.
The current economic conditions index increased from a revised May reading of 80.9 to 86.8 in August 2012. The index measuring future economic conditions increased significantly to a reading of 105.6 in August 2012 from a revised reading of 93.6 in May. Recent improvement in the job market positively affected consumers’ assessment of the current economic conditions and the outlook about future economic activity.
The index measuring consumers’ planned spending on big-ticket items, however, decreased substantially from the revised May reading of 96.0. The decline in this index in August 2012 to a reading of 86.1 may be due to high and volatile gasoline prices. Higher gas prices are reducing consumers’ disposable income and negatively affecting consumers’ planned spending.
Thursday, August 30, 2012
REAL ESTATE UPDATE
NATIONAL MORTGAGE SETTLEMENT
As you know, last February the 5 major loan servicers - BofA, Chase, Wells Fargo, Citi, and Ally - reached a Settlement of the lawsuit filed by the 50 Attorneys General based upon fraudulent foreclosure practices which came to be known as the "Robo-Signer Scandal". As reported in DSNews.com, through the end of June, the servicers have extended about $10.56 billion in aid and loss mitigation to struggling borrowers in a variety of ways. 7,093 borrowers received first lien modifications with principal forgiveness in the amount of $749.4 million. The amount of principal forgiveness per borrower amounts to about $105,650. Bank of America was the only servicer that failed to offer first lien modifications with principal forgiveness under the settlement. Another $10 Billion in lender obligations remains to be satisfied. In addition, the servicers have implemented between 35 and 72 percent of the 304 servicing standards required under the Settlement. However, Fannie Mae and Freddie Mac which hold 60% of the nation's residential loans were not included in the Settlement and continue to refuse to make any principal reduction.
HOMEOWNERS BILL OF RIGHTS
In July, California enacted the major pieces of legislation which were introduced by Attorney General Kamala Harris. These provision, which will take effect January 1, 2013, will incorporate many of the provisions of the National Mortgage Settlement into California law and specifically will: 1) eliminate "dual tracking" of foreclosures during loan modification negotiations (it's unclear if this will extend to short sales); 2) give borrowers a right to stop foreclosures that violate these laws; and 3) provide for civil penalties and attorney fees against violating servicers. While some worry that these laws will make credit harder to get in California, they will compel lenders and servicers to provide borrowers with fair and honest treatment in the loan modification process. They will not force any lender to make any loan modification.
NEW LOAN MODIFICATION OPTIONS
As referenced in my last E-News, in response to the above Settlement and Legislation, we can anticipate lenders getting more creative in their resolution of problem loans. Ocwen has now offered it's "Shared Appreciation Modification" which will write the principal debt on a property down to fair market value with payments reduced to as low as 2% interest. The unpaid balance will be forgiven over 3 years if the borrower stays current. In exchange, the lender will receive 25% of future appreciation to be paid upon sale or refiance. Look for similar opportunities to arise with other lenders... maybe even Fannie and Freddie.
DEBT FORGIVENESS RELIEF EXTENSION
We are still waiting for any confirmation that the Debt Forgiveness Relief Act will be extended beyond it's current December 31st expiration date. The Senate Finance Committee approved a bipartisan bill before heading home for summer recess that would extend the Mortgage Forgiveness Debt Relief Act through 2013. This will go to the Senate in September; President Obama has included the extension in his 2013 Budget proposal that would extend it through 2014; but nothing has passed into law as yet. The big question is where does Mitt Romney stand on this issue. So far, he's remained silent.
DEPARTMENT OF REAL ESTATE CRACKDOWNS
Through the end of June, 2012, The California DRE which licenses and regualtes real estate brokers and salespersons, has caused the suspension or termination of over 1,000 licenses, a 100% increase over just 5 years ago. And Cease and Desist actions against unlicensed persons acting as agents are up 170%. Whether this is the result of increased violations in a down economy or just increased vigilence by DRE, there is no question that investigations are up. Some fear that recent DRE activity points to efforts to stop "dual agency" where the listing and selling agent or broker are the same. What we expect is an obligation of agents to be able to show that they have protected the rights of both buyer and seller, particularly in a short sale situation.
If you or someone you know is upside-down on real estate and don't know which way to go; or if you are being contacted by a creditor demanding payment; or facing a DRE investigation, be sure to get legal help right away. Our BPE Law $200 flat fee Consultation Program can offer knowledge of what to expect and form strategies to respond and hopefuly eliminate any liability. To schedule a Consultation, please contact our office at (916) 966-2260 or e-mail me at sjbeede@bpelaw.com.
The information presented in this Article is not to be taken as legal advice. Every person's situation is different. If you are upside-down on your loan, especially if you're facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.
Tuesday, August 28, 2012
Friday, July 27, 2012
Monday, July 23, 2012
Thursday, July 12, 2012
Governor signs California Homeowner Bill of Rights into law
California Governor Jerry Brown signed into law today the Homeowner Bill of Rights to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California's housing market and prevent the other negative effects of foreclosures on families, communities, and the economy. The new law will generally prohibit lenders from engaging in dual tracking, require a single point of contact for borrowers seeking foreclosure prevention alternatives, provide borrowers with certain safeguards during the foreclosure process, and provide borrowers with the right to sue lenders for material violations of this law.
The Homeowner Bill of Rights has four major components:
- Prohibiting “dual track” foreclosures that occur when a servicer continues foreclosure while also reviewing a homeowner’s application for a loan modification;
- Creating a single point of contact for homeowners who are negotiating a loan modification;
- Expanding notice requirements that must be provided to a borrower before taking action on a loan modification application or pursuing foreclosure; and
- Allowing injunctions against foreclosure until violations are corrected and permitting civil penalties against servicers that file multiple, inaccurate mortgage documents or commit reckless or willful violations of law.
These new laws make California the first state in the nation to take provisions in the National Mortgage Settlement, which covered the nation’s five largest mortgage loan servicers, and apply those rules to all mortgage servicers.
C.A.R. opposed this well-intentioned legislation because it will encourage the filing of lawsuits intended for delay and further discourage lending.
While C.A.R. is disappointed in the final outcome, the good news is that what has passed is a much-improved version of the package of bills initially sponsored by the Attorney General, which would have originally halted ALL foreclosures, drying up both REO inventory and even short sales.
C.A.R. will continue to fight for the thoughtful, balanced reform of the foreclosure process. For example, C.A.R. is sponsoring AB 1745 (Torres) which prohibits “dual tracking” to prevent lenders from selling a property at a foreclosure sale if a short sale has already been approved. C.A.R. has also worked cooperatively with the Attorney General on several of the bills in her “bill of rights.”
The law will go into effect January 1, 2013. For full text of the bills, visit: http://leginfo.ca.gov/bilinfo.html.
Friday, June 29, 2012
Monday, June 4, 2012
Home Prices Begin to Bounce Back
The Federal Housing Finance Agency reported that nationwide home prices posted their first gain in the first quarter since 2007. While the gain was modest at 0.6 percent, housing experts note it’s still another sign that the housing market is gaining momentum.
FHFA’s housing price index is calculated using home sales price information based off Freddie Mac and Fannie Mae-backed mortgages.
FHFA’s seasonally adjusted monthly index rose 1.8 percent in March over February, which is the largest monthly increase in at least 20 years. Year-over-year, home prices increased 2.7 percent, FHFA reports.
"Increased affordability and a somewhat smaller inventory of homes for sale are positively impacting house prices," says Andrew Leventis, FHFA’s principal economist.
Price increases were the highest in Hawaii with a 10.3 percent increase, and in Washington, D.C., which saw a 9.8 percent gain, according to FHFA.
Still, Number of Underwater Home Owners Remain High
Despite recent improvements in home prices, the percentage of underwater borrowers has shown little improvement in the last year. More than 30 percent of home owners in the first quarter remained underwater on their mortgage, owing more on their home than it’s currently worth, according to a new Zillow housing report.
A year ago, 32.4 percent of all borrowers had negative equity on their loan compared to 31.4 percent during the most recent quarter, Zillow reports.
Yet, Zillow notes that nine out of 10 underwater borrowers are current on their mortgage payments.
"[It's] important to note that negative equity remains only a paper loss for the vast majority of underwater home owners," says Stan Humphries, Zillow's chief economist. "As home values slowly increase and these home owners continue to pay down their principal, they will surface again."
The highest share of underwater home owners continues to be in Las Vegas, where 71 percent of home owners are underwater, followed by Phoenix (at 55.5 percent) and Atlanta (at 55.2 percent), according to the Zillow housing report.
Source: “U.S. Housing Prices Rise,” UPI (May 23, 2012); “Home Prices Rose Most in Two Decades in March, FHFA Says,” Bloomberg News (May 23, 2012) and “More than 30% of Mortgage Borrowers Still Underwater,” CNNMoney (May 24, 2012)
Read More
Tuesday, May 29, 2012
Tuesday, May 15, 2012
Monday, May 14, 2012
Tuesday, May 8, 2012
Wednesday, April 25, 2012
Tuesday, April 24, 2012
Sunday, April 22, 2012
Short Sales Surpass Foreclosures as Banks Agree to Deals
By John Gittelsohn - Apr 17, 2012
The number of U.S. home short sales surpassed foreclosure deals for the first time as banks became more agreeable to selling houses for less than the amount owed on their mortgages, according to Lender Processing Services Inc. (LPS) Short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by the Jacksonville, Florida-based company show. A year earlier, 16.3 percent of transactions were short sales and 24.9 percent involved foreclosures. A for sale sign is displayed in front of a bank-owned home in West Palm Beach, Florida. Photographer: Mark Elias/Bloomberg April 17 (Bloomberg) -- U.S. housing starts in March dropped 5.8 percent to a 654,000 annual rate, less than the lowest estimate of economists surveyed by Bloomberg News and the least since October, Commerce Department figures showed today in Washington. Michael McKee and Betty Liu report on Bloomberg Television's "InsideTrack." (Source: Bloomberg) “It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president in the applied analytics division of Lender Processing Services, said in a telephone interview. “Short sales should be the dominant way of disposing of assets” in distress, he said. Lenders are catching up to short sales after being slow to provide the staffing and incentives necessary to complete the deals, Weiner said. The transactions typically fetch a higher price for banks than sales of homes that have gone through foreclosure. In January, foreclosed homes sold for an average of 29 percent less than comparable non-distressed properties, compared with a 23 percent discount for short sales, according to Lender Processing Services. The gap has narrowed as short sales become more common, Weiner said. The growing percentage of short sales, which don’t require going through the drawn-out foreclosure process, is a sign that the U.S. is making progress in working through its inventory of distressed properties, Weiner said. The increase in short sales also may help values find a floor quicker. “Our baseline scenario is that home prices will hit a bottom at the end of this year,” he said. The Federal Housing Finance Agency ordered loan servicers to respond to all short-sale offers within 30 days, and approve or reject them within 60 days, in an effort to expedite a process that can take months longer than conventional home sales, the agency said in a statement today. The FHFA, which oversees mortgage companies Fannie Mae and Freddie Mac, wants to improve the short-sale process “to prevent foreclosure, keep homes occupied and help maintain stable communities,” Edward J. DeMarco, the agency’s acting director, said in the statement. Freddie Mac and Fannie Mae completed 125,456 short sales last year, the most recent period for which figures are available. Banks including Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) last year began giving cash inducements as high as $35,000 to selected homeowners who agreed to a short sale as a way of speeding up the process. Bank of America Corp. paid $19.9 million in the first two months of this year for 22,534 homeowners to relocate after short sales and deeds in lieu of foreclosure, when borrowers agree to return the property deed in exchange for debt forgiveness, the Charlotte, North Carolina-based company said March 16. Its short sales rose 31 percent in January and February from a year earlier. Banks have struggled to reduce losses from delinquent mortgages. Almost 4.4 percent of homes with loans had received a notice of foreclosure sale at the end of 2011, the 11th consecutive quarter the rate has been higher than 4 percent, according to the Mortgage Bankers Association. Foreclosure filings, including notices of defaults and bank repossessions, fell 16 percent in the first quarter from a year earlier after lenders under legal scrutiny slowed actions against delinquent homeowners, RealtyTrac Inc. reported April 12. Lender Processing Services, a 2008 spinoff from title- insurance company Fidelity National Financial Inc. (FNF), counts short sales by tallying mortgage and property transfer documents filed with county recorders, Weiner said. Other reports haven’t shown the same magnitude of short- sale growth. The National Association of Realtors reported that 13 percent of transactions were short sales and 22 percent were foreclosures in January. In February, short sales increased to 14 percent and foreclosure-related transactions declined to 20 percent, the group said March 21. The Realtors collect their data from transactions on the Multiple Listing Service, a database of homes on the market, and a survey of about 3,000 members, said Walter Molony, a spokesman for the association. “The February data is showing a bit of an uptick,” he said in an e-mail from Washington. “We’re hearing the process is going a bit more smoothly now, so that comes as no surprise.” The U.S. Department of Housing and Urban Development reported a preliminary 19,600 short sales in January, compared with the Lender Processing Services tally of 48,721. An April 6 HUD report showed that the number of short sales rose 4.3 percent from a year earlier as the number of real estate owned, or REO, sales -- another name for foreclosure sales -- fell 39 percent. Before agreeing to accept a loss on a short sale, lenders usually require homeowners to show evidence of hardship, such as inability to afford their mortgage payments or the need to relocate for a job, said Weiner of Lender Processing Services. Short sales outnumbered foreclosures in states with some of the largest shares of homes facing foreclosure, such as Arizona, California, Florida, Nevada and New Jersey, Lender Processing Services reported. In New Jersey, short sales have exceeded REO deals every month since June 2010. In January, short sales accounted for more than 15 percent of the 3,033 New Jersey homes sold, compared with 3.9 percent for foreclosures. It took 966 days for banks to repossess a home in New Jersey, second only to New York, according to RealtyTrac. Both states require judicial hearings for foreclosure approval. In New York, where it takes 1,056 days to repossess a home, 7.9 percent of purchases in January were short sales while 2.3 percent involved bank-owned properties. “In general, markets where larger incentives are provided usually have extended foreclosure timelines, such as Florida,” Tom Goyda, a spokesman for Wells Fargo, said in an e-mail from Ellisville, Missouri. Wells Fargo, which doesn’t disclose its short-sale totals, offers homeowners as much as $20,000 to relocate, he said. Distressed-Property Inventory
Cash Incentives
Falling Foreclosures
Showing an ‘Uptick’
California, Arizona
To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net
To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net
Saturday, April 21, 2012
Thursday, April 19, 2012
Tuesday, April 17, 2012
California Home Prices Going Up, Inventory Down, C.A.R. Reports .
By: Esther Cho
After 16 months of year-over-year declines, median home prices in California posted a gain, according to the California Association of Realtors.). The median price of a single-family home for March 2012 was $291,080, a 1.6 percent increase compared to a revised $286,550 for March 2011, and a 9.2 percent increase compared to February’s median price of $266,660. The month-over-month increase was the largest since March 2004. When breaking up prices by specific regions, the San Francisco Bay area was an exception, seeing a year-over-year decrease of 1.6 percent, but a 9.1 percent month-over-month increase. “In areas, such as Los Angeles and Riverside counties, where the Federal Housing Finance Agency (FHFA) wants to implement the REO bulk sale pilot program, inventory is running at levels well below the long-run average,” said C.A.R. VP and chief economist Leslie Appleton-Young. “These low inventory levels demonstrate that the pilot program is not necessary in California.” The pilot program involves the sale of government-owned REOs in bulk to institutional investors who will convert them into rental properties. According to C.A.R., in California, the program would call for the sale of more than 600 Fannie Mae-owned foreclosed homes in Los Angeles and Riverside counties. Recently, 19 California congressmen sent a letter to Edward DeMarco, acting director of FHFA, asking him to make California an exception to the program. C.A.R. reported that California’s housing inventory declined, with the Unsold Inventory Index for existing, single-family homes down to 4.1 months in March, compared to a revised 5.4 months in February and a 5.4 month supply in March 2011. Los Angeles county had a 4.3 month supply, and Riverside county had an even lower number, with 3.8 months of inventory. San Mateo and Santa Clara counties had notably low inventories as well, at 2.4 and 2.5 months, respectively. Not only is California’s housing inventory down, but according to C.A.R., it takes less days to sell a home there, with the time it took to sell a single-family home dropping to 53.1 days in March 2012, compared to 58.9 days in February and 57 days for March 2011.
Monday, April 9, 2012
In Two Years, Real Estate will Rock
Housing starts will nearly double and home prices will begin to rise in 2013, with prices increasing significantly in 2014.
Thursday, April 5, 2012
Do Your Part: Top 7 Green Cleaning Secrets
Spring is here and that means it’s time for a good spring cleaning. Instead of bringing in chemical cleaners to do the dirty work, opt for a deep, green clean. Using safer cleaning products helps create a healthier home and a healthier family. Today, I’m sharing
Monday, April 2, 2012
Experts Expect to See Broad Improvements, Home Prices to Rise in 2013
By: Esther Cho
The Urban Land Institute released its Real Estate Consensus Forecast Wednesday morning, and overall, the 38 real estate economists and analysts surveyed projected broad improvements for the economy. With signs of improvement in the housing sector already emerging, participants expect to see housing starts nearly double by 2014 and project home prices will begin to rise in 2013. The average home price, which has declined somewhere between 1.8 percent and 4.1 percent over each of the past three years, according to FHFA data, is expected to stabilize in 2012, followed by a 2 percent increase in 2013, and a 3.5 percent increase in 2014. Single-family housing starts are expected to rise from 428,600 starts in 2011 to 500,000 in 2012, and jump to 800,000 in 2014. The unemployment rate is expected to continue falling, with the rate dropping to 8 percent by the end of 2012, 7.5 percent by the end of 2013, and 6.9 percent by the end of 2014. GDP is expected to grow by 2.5 percent in 2012 and grow to 3.2 percent in 2014. But, with the improving economy is inflation and higher interest rates. These rising rates will increase costs for investors, and those surveyed do not expect substantial increases in real estate capitalization rates for institutional-quality investments (NCREIF cap rates), which are expected to remain steady at 6 percent in 2012 and 2013 and then rise slightly to 6.2 percent in 2014. By property type, National Council of Real Estate Investment Fiduciaries (NCREIF) total returns in 2012 are expected to be strongest for apartments (12.1 percent), followed by industrial (11.5 percent), office (10.8 percent), and retail (10 percent). By 2014, returns are expected to be strongest for office (10 percent) and industrial (10 percent), followed by apartments (8.8 percent) and retail (8.5 percent). ULI CEO Patrick L. Phillips advised that while the ULI Forecast suggests that economic growth will be steady rather than sporadic, it must be viewed within the context of numerous risk factors such as the continuing impact of Europe’s debt crisis; the impact of the upcoming presidential election in the U.S. and major elections overseas; and the complexities of tighter financial regulations in the U.S. and abroad. “While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years.,” said Phillips. Non-housing sector growth, according to the ULI Forecast, which was conducted from February 23 to March 12, 2012 -For the apartment sector, year-end vacancy rates are expected to decline further in 2012 to 5 percent, and then rise slightly to 5.1 percent in 2013 and to 5.3 percent in 2014. -Apartments are expected to show strong rental rate growth, rising 5 percent in 2012, then slowing down to 4 percent in 2013, and 3.8 percent in 2014. -Issuance of commercial mortgage-backed securities (CMBS) is expected to increase from $33 billion in 2011 to $40 billion in 2012, $58 billion in 2013, and $75 billion in 2014. -Ten-year treasury rates are projected to rise to 2.4 percent by the end of 2012, 3.1 percent for 2013, and 3.8 percent for 2014. -Future equity REIT returns are expected to rise to 10 percent in 2012, then drop to 9 percent in 2013, and 8 percent in 2014. -Returns for institutional-quality direct real estate investments are expected to trend lower, with returns of 11 percent in 2012, 9.5 percent in 2013, and 8.5 percent in 2014. -Hotel occupancy rates are projected to increase to 57 percent by 2012, 58.2 percent by 2013, and 59.2 percent by 2014. -For the industrial/warehouse sector, vacancy rates are expected to decline steadily over the next three years to 12.8 percent by the end of 2012, 12.1 percent in 2013, and 11.5 percent by the end of 2014.
Thursday, March 29, 2012
Thursday, March 22, 2012
B of A Cooperative Short Sale. what is it??
What is a Cooperative Short Sale? In a Cooperative Short Sale, you list the property for sale at fair market value. If the property is sold, the proceeds from the sale are used to pay off the mortgage debt, even if the proceeds are less than the amount owed on the mortgage. By working with Bank of America and a real estate professional to successfully complete a Cooperative Short Sale, we can help you avoid some of the negative aspects of a foreclosure.
B of A started this program to cut down on the time frame but also the amount of documentation that you have to provide
Benefits of a Cooperative Short Sale include:
*You have up to 4 months to sell the property.
*You may be eligible to receive relocation assistance of $2,500 to help with moving, relocation and rental expenses.
*If the Cooperative short sale is successful, Bank of America will not pursue the deficiency balance on your loan.
*You will have dedicated support so you have the information you need to make informed decisions throughout the process.
To see if you qualify for this program, give me a call and have your loan number ready.
Monday, March 19, 2012
Americans More Optimistic About Housing, Economy
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Americans’ concerns over housing and the economy are subsiding, according to Fannie Mae’s National Housing Survey from February.
An improving job market is a big part of what’s behind Americans feeling more confident about the housing market and the direction of the economy, according to the survey.
“The pickup in the pace of hiring over the past few months has helped soothe consumer concerns, lifting their moods regarding their personal finances, the direction of the economy, and their views on the housing market,” says Doug Duncan, chief economist of Fannie Mae. “As a result, we’ve seen more potential for economic upside, creating a more balanced near-term outlook.”
The survey found that 28 percent of Americans expect home prices to increase over the next 12 months while 53 percent say prices will likely stay the same. Fifteen percent say they expect home prices to decline.
Meanwhile, the majority of those surveyed see rental prices continuing to increase over the next year.
Sixty-five percent of those surveyed say that if they were going to move they’d buy their next home; 29 percent say they would rent.
With low mortgage rates and falling home prices, 70 percent of those surveyed say now is a good time to purchase a home. Also, more Americans surveyed say now is a good time to sell, rising to 13 percent in February, which is the highest level in more than a year but still low by historic standards.
Overall, Americans expressed more confidence about their personal financial situation, with only 12 percent saying they expected their personal financial situation to worsen in the next 12 months — which is the lowest number in more than a year.
Tuesday, March 13, 2012
WHAT YOU NEED TO KNOW ABOUT THE NATIONAL MORTGAGE SETTLEMENT
On Monday, March 12th, the proposed Settlement documents were filed in Federal Court revealing what each of the Lenders is required to do. You can read the details at http://nationalmortgagesettlement.com/. How they’ll meet those obligations is critical to upside down homeowners. Those details are slowly emerging through analysis, press-releases, and side deals. Here’s what you need to know so far:
1. The Lenders - the Settlement ends lawsuits by the Federal Government and State Attorney Generals against: Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and GMAC/Ally.
2. The Settlement - requires the 5 Lenders to collectively provide up to $25 Billion in relief to distressed borrowers and payments to government agencies. This will be provided through a combination of direct cash payments and credits for debt reduction and other loan adjustments. The individual lender shares are: BofA: $11.82 Billion; Wells Fargo: $5.35 Billion; Chase: $5.29 Billion; Citigroup: $2.21 Billion; and Ally: $610 Million.
3. The Allocations - The Settlement requires the Lenders to provide the relief through three broad categories:
(1) Foreclosure Assistance Payments - paid to State and Federal Govenerment agencies;
(2) Consumer Relief Programs - credits for principal reduction of 1st and 2nd loans;
(3) Loan Refinancing - provides interest rate and principal reduction
4. The Side Deals - The Settlement is very complex and the devil will be in the details since each lender can map out exactly how it plans to satisfy its allocations. See my recent Blog on the Wells Fargo roadmap. However, already participating lenders are cutting “side-deals” to obtain a better result by offering even better settlement options:
a. Bank of America - announced deeper principal reductions for about 200,000 homeowners, up to $100,000 each. In exchange, they will avoid up to $850 Million in penalties. BofA has also announced that it is temporarily halting foreclosures while it identifies and solicits the potential beneficiaries of these reductions.
b. Ally - announced possible principal reductions to current market value. Further, some borrowers in extreme financial distress may get reductions to 85% of their home’s value.
5. What to Do Now - Although the Settlement terms must still be approved by a Federal Judge, if you are in financial distress and in danger of losing your home, contact your State Attorney General’s office for information and contact links with the specific lenders. The California AG’s website for the National Settlement is at http://oag.ca.gov/nationalmortgagesettlement and has internet and/or phone contacts for each of the participating lenders. Don’t expect immediate relief. The Settlement is a process that still requires Court approval, will take several months to get organized, and will take up to three years to fully provide benefits. But, it does promise substantial relief for those who qualify and diligently pursue the available benefits.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are upside-down on your loan, especially if you’re facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.
Article was written by Steve Beede.
Monday, March 5, 2012
WILL YOUR LENDER PAY YOU TO SHORT SALE YOUR HOME?
By Steve Beede.
As reported in DSNews.com, a Massachusetts real estate company, McGeough LaMachia Realtors, conducted a nationwide study which indicated that short sales bring a 24% greater return to lenders than foreclosures. This study by compared sale prices of short sales vs REOs in multiple states including California. The average difference was $43,000! And that likely did not take into consideration the cost of foreclosure including many months more of non-payment plus carrying costs as an REO. It therefore is no surprise that some lenders have actively sought to promote short sales by offering incentives to upside down owners to not just walk away.
Chase has been offering incentives of up to $35,000; BofA: up to $25,000; Wells Fargo: up to $20,000; and Citibank: up to $12,000. With many more foreclosures likely coming in 2012, these programs may very well expand especially in states like Florida where foreclosures require a legal action in the courts. According to a Chase spokesman: “When a modification is not possible, a short sale produces a better and faster result for the homeowner, the investor and the community than a foreclosure.”
According to market analyst Realty Trac, a mountain of pending repossessions is holding back a recovery in the housing market, where prices have fallen for six straight years, and damping economic growth. Owners of more than 14 million homes are in foreclosure, behind on their mortgages or owe more than their properties are worth. Short sales represented only 9% of all residential transactions last year with many owners holding out for a Loan Modification or otherwise staying in their property payment free for over a year while their home moves to foreclosure. Lenders are realizing that they can dramatically cut their losses by paying owners to sell the property now.
Unfortunately, the government agencies which hold at least 60% of the delinquent loans have not gotten the message. FHA offers only $1,500 in incentives. Fannie Mae and Freddie Mac offer incentives up to $3,000 but only through the HAFA program. Perhaps this government resistance to economic logic explains why lenders are returning to profitability while the government languishes in a Budget mess.
For some commentators however, any such payment is viewed as a reward for defaulting on obligations and sets a precident which might encourage others to also default. While indeed there is a “moral hazard” involved in any perceived bailout – whether it be government helping the banks or anyone helping the homeowners – the reality is that our economic recovery requires that we resolve the housing crisis as soon as possible regardless of whom is to blame.
From my vantage point, having now advised over 4,000 upside down property owners over the past 3 years, this is not about deadbeat borrowers trying to avoid their debts. Many people still fail to appreciate the impact that this housing crisis has had on upside-down owners. For most, it is not a choice whether to pay or lose their home. Job losses and escalating loan costs have made many loans unaffordable for the average person. Almost all Loan Modification programs including the government’s HAMP program start with a threshhold that people should not be paying more than 31% of their income on their loan. However, a recent study by the Center for Housing Policy indicates that nearly 1/4 of all homeowners are paying over 50% of their income for housing costs. The Report indicates a similar payment ratio for renters.
With high unemployment and increasing costs for everything from gas to groceries, it is likely that more and more struggling homeowners will lose the battle to keep their homes leaving short sale or foreclosure as their only alternatives. Look for even more Lenders to offer incentives to move these properties faster and reduce their losses. Whether the government agencies will get on board will remain questionable especially in an election year when the granting of any payment to a defaulted borrower will be considered by some to be a waste of taxpayer dollars.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are upside-down on your loan, especially if youre facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.
Tuesday, February 21, 2012
Proposed Bill to Speed Up Short Sale Process and Prevent Foreclosure
To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.
Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.
The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer
will be limited to one extension of no more than 21 days.
The bill will also allow the buyer to be awarded $1000, plus “reasonable” attorney fees if the Act is violated.
According to a release from Short Sale New England, short sale homes do not bring down neighboring home values like foreclosed homes do, and 83 percent of short sale buyers are satisfied with their purchase, according to a 2012 Home Ownership Satisfaction Survey conducted by HomeGain.
“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure,” said Moe Veissi, president of the National Association of Realtors. “As the leading advocate for homeownership, realtors are supportive of any effort to improve the process for approving short sales.”
Equi-Trax released a survey last year on the issues real estate agents face when completing short sales. Guy Taylor, CEO at Equi-Trax, said 71.9 percent of respondents reported that a short sale can take four to nine months to complete, and they think that is simply too long.”
The survey also found that 18.2 percent of deals require less than three months to complete, with 10 percent requiring more than 10 months.
When agents in the survey were asked to how the short sale process can be improved, 57.6 percent said lenders should take less time to close transactions, 14 percent said borrowers should be better educated about short sales, and 40.4 percent said both of these changes are necessary to improve the process.
In April 2011, a similar bill was introduced by Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey), but this version requested a response deadline of 45 days instead of 75 from lenders. The legislation never came up for debate before a House committee.
Monday, February 13, 2012
California to Receive $18 Billion in Mortgage Settlement
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.
On February 9, Attorney General Kamala D. Harris announced that California secured up to $18 billion for its distressed homeowners as part of a $25 billion national multistate settlement with the country's five largest loan servicers. More than $12 billion will be used to offer short sales or write down loans over the next three years for about 250,000 underwater homeowners in California, according to the attorney general. Relief will go to areas hardest hit by the foreclosure crisis within the first year of the settlement. Although the actual settlement has not yet been released, the attorney general has stated that other financial benefits for California include $849 million for refinancing 28,000 borrowers who are underwater but current on their payments; $279 million restitution for 140,000 homeowners who were foreclosed upon between 2008 and 2011; $1.1 billion for unemployed homeowners, transitional assistance, and repairing blight; $3.5 billion to extinguish unpaid loans that remain after foreclosure for 32,000 homeowners; and $430 million to the state attorney general's office for costs and fees. As part of a California guarantee, if the lenders fail to reduce principal balances by a minimum of $12 billion, they will be required to pay fines up to $800 million to the state. The loans involved in this settlement are those owned or serviced by Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial Inc. The settlement releases the five named lenders from certain federal and state claims pertaining to robo-signing and other foreclosure misconduct by the lenders. It does not affect any individual's rights to bring legal action against a lender. It also does not apply to the majority of mortgage loans, which are those owned by Fannie Mae or Freddie Mac. This mortgage settlement does not change any homeowner's existing financial relationship with a settling lender. It does not relieve homeowners from any obligation. It does not require a settling lender to stop any foreclosure.
Homeowners seeking relief under the settlement agreement should contact their loan servicer or a HUD-approved housing counselor. More information including detailed FAQs is also available from the California Attorney General's website, or visit the National Mortgage Settlement website.
Friday, February 10, 2012
Roseville Home For Sale
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Thursday, February 9, 2012
Report Reveals Number of Foreclosures Down From Last Year
By: Esther Cho
A foreclosure report released by CoreLogic Wednesday revealed that the number of homes in foreclosure is decreasing nationwide. The report included monthly data on foreclosures, foreclosure inventory, and 90-plus delinquency rates. Completed foreclosures for 2011 totaled 830,000, compared to 1.1 million in 2010. The December 2011 completed foreclosures figure was also down to 55,000, compared to 67,000 in December 2010. Nationally, the number of loans in the foreclosure inventory decreased 8.4 percent in December 2011, compared to December 2010, which is a decline of about 130,000 properties. Data from the report revealed 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the foreclosure inventory as of December 2011. A property is counted as foreclosure inventory when the mortgage servicer places the property into the foreclosure process. Foreclosure inventory is only measured against homes with an outstanding mortgage. About one-third of homeowners nationwide own their homes. “The inventory of foreclosed properties has begun to shrink, and the pace at which properties are entering foreclosure is slowing. While foreclosure filings are being curtailed by a variety of judicial and regulatory constraints, mortgage servicers are completing REO sales faster than they are completing foreclosures,” Mark Fleming, chief economist with CoreLogic, said in the release. “This is the first time in a year that REO sales have outpaced completed foreclosures, and part of the reason for the decrease in the foreclosure inventory.” In December 2011, servicers increased the rate at which they were able to process distressed assets, also known as distressed clearing ratio, according to the CoreLogic report. The distressed clearing ratio is found by dividing the number of REO sales by completed foreclosures. A higher ratio means faster clearing of REO inventory. The distressed clearing ratio was 1.03 in December, up from 0.94 in November. The share of borrowers nationally that were 90 days or more delinquent decreased to 7.3 percent in December 2011, compared to 7.8 percent in December 2010. From the start of the financial crisis in September 2008, there have been approximately 3.2 million completed foreclosures, according to the report. CoreLogic, headquartered in California, provides information, analytics, and services to the private and public sectors. December 2011 Highlights From the Report The five states with the highest foreclosure inventory: The five states with the lowest foreclosure inventory: Of the top 100 markets measured by Core Based Statistical Areas (CBSAs) population, 34 are showing an increase in the foreclosure inventory in December 2011, compared to 46 in November 2011.
Thursday, January 5, 2012
Top-10 List of New Year’s Resolutions for Your Home
By: John Riha
Published: December 30, 2011
When the new year arrives, promises and resolutions abound. Here’s the top-10 list of what the resolute home owner should accomplish this year.
Ready for 2012? Here it comes:
1. Lose weight (cut energy use)
2. Quit smoking (purify indoor air)
3. Get out of debt (budget for improvements)
4. Learn something new (educate yourself on home finances)
5. Get organized (de-clutter)
6. Volunteer (support your community)
7. Drink less (curb home water use)
8. Spend more time with the family (share home improvement projects)
9. Get fit (exercise your DIY skills)
10. Be less stressed (use maintenance-free materials)
1. Lose weight (cut energy use)
Your house is a glutton, gobbling energy like a starved elephant. Gain control by trimming energy use.
A good place to start is your HVAC ductwork. Ducts are notorious energy-wasters, leaking your heating and cooling air through holes and loose connections.
Sealing and insulating your ductwork can improve the efficiency of your heating and cooling system by as much as 20%, saving you $200 per year or more, according to Energy Star. You’ll make your home more comfortable, and a more-efficient system helps extend the life of your furnace, air conditioner, or heat pump.
Because ducts are usually hidden inside walls, ceilings, attics, and crawl spaces, sealing and insulating them may be a difficult and time-consuming DIY job. If you can’t reach all your ducts, concentrate on those that are accessible.
Use duct sealant — called mastic — or metal-backed tape to seal the seams, holes, and connections. Don’t use the confusingly named “duct tape,” which won’t provide a permanent solution. Be sure to seal connections at vents and floor registers — these are likely places for leaks to occur.
After sealing your ducts, wrap them in fiberglass insulation. Most hardware stores and home improvement centers have insulation wrap products made for ducts.
A professional heating and cooling contractor will charge $1,000 to $4,000 for the work, including materials, depending on the size of your home and accessibility to your ducts.
Insulating your ductwork may qualify for a rebate from your state or local municipality. Check the Database of State Incentives for Renewables & Efficiency.
2. Quit smoking (purify indoor air)
The EPA lists indoor air quality as one of the top environmental health hazards. That’s because indoor air is full of potential contaminants, such as dust, mold spores, pollen, and viruses. The problem is at its worst during winter, when windows and doors are shut tight.
You can help eliminate harmful lung irritants in your home with these maintenance and improvement tips:
Maintain your HVAC system and change furnace filters regularly. Use the highest-quality filters you can afford ($10-$20) and change every month during peak heating and cooling seasons.
Keep indoor air pristine by using low-VOC paints when you remodel your rooms.
Use localized ventilation in kitchens and bathrooms to remove cooking fumes, smoke, and excess humidity. Make sure ventilation systems exhaust air to the outside of your home, rather than your attic crawl space or between ceiling joists.
In fireplaces and wood stoves, burn real firewood rather than pressed wood products that may contain formaldehyde.
Use a portable air cleaner to help cleanse the air in single rooms. Portable air cleaner types include mechanical air filters, electrostatic precipitators, ion generators, and ultraviolet lamps.
Note that each type of air cleaner is designed to remove specific pollutants; no portable air cleaner removes all pollutants. Be wary of air cleaners that generate ozone — a known lung irritant.
3. Get out of debt (budget for improvements)
Creating a yearly budget for home improvement and maintenance helps prevent overspending, and encourages you to put aside money for major replacements — such as new roofing or a kitchen appliance — that come up every few years.
Protect your home finances by knowing how much you’ll probably spend each year. Data from the U.S. Census Bureau says that average annual maintenance and home improvement expenditures are about $3,300 per household. Leading lending institutions agree; HSH Associates and LendingTree.com place average costs of yearly maintenance and upkeep at 1% to 3% of your home’s initial price.
That means the owner of a $250,000 home should budget between $2,500 to $7,500 each year for upkeep and replacements. Have extra at the end of the year? Save it for more costly upkeep and replacement items down the road — you’ll probably need it then.
4. Learn something new (educate yourself on home finances)
Want a little education that goes a long way toward your financial health? Learning how to improve your insurance score can help you keep your home insurance premiums from getting out of hand. Here are a couple of easy lessons:
Letting credit card debt build up is a black mark on your credit history — and an indicator that you’re likely to file an insurance claim. The more claims, the higher risk you appear to be to insurance agencies, which lowers your insurance score. Low scores mean higher rates for home insurance.
Keep payments on loans up-to-date. Don’t miss payment deadlines; if you do, notify your lender that your payment is forthcoming. Delinquent payments signal insurers that you can’t manage your money — resulting in a lower insurance score.
Need some Home Owner 101? Any time is a good time to bone up on basic home maintenance skills.
5. Get organized (de-clutter)
No excuses — that clutter has got to go! Start by creating more storage space so you can stash stuff easily.
At wit’s end for new storage space? You’ve probably got storage solutions you didn’t know you had. Put up a high shelf between the walls of a narrow hallway, and tuck storage in out-of-the-way nooks, such as under-stairs spaces and between wall studs.
If your small home is pinched for space, don’t despair: There’s still room for storage. Shoe organizers ($20) do more than hold shoes — use them to store keys, notepads, and cell phones. At about $300 per drawer, have a cabinetmaker install drawers in the toe kicks of your kitchen cabinets for napkins, cookie sheets, and appliance manuals.
More: Resolution: Put Your House on a Diet
6. Volunteer (support your community)
In a world that often seems topsy-turvy, a little altruism helps restore balance. You can volunteer your time and energy to help others, and at the same time help promote safety and preserve the value of your neighborhood.
A neighborhood watch program fosters a sense of community and helps stop crime. Set up a meeting with neighbors to discuss concerns and priorities. Gather facts to present at the meeting: What kinds of crimes happen nearby? Are there patterns? Ask a local police representative to come to your first meeting to answer questions.
Start a community garden. Bring together neighbors for bonding, eating healthier, and saving on groceries. A 4-by-16-foot raised bed garden plot provides $200-$600 worth of food annually. As the organizer, you can expect to spend 20-30 per month for six months getting your community garden going.
7. Drink less (curb home water use)
Our houses are thirsty. The average household uses about 400 gallons of water each day, or almost $700 per year in water and sewer costs. Making a few simple changes, such as installing EPA-certified WaterSense products, could trim up to $200 from your annual water bill. Add to that energy savings from reduced costs to heat water, and your yearly savings could reach $300 or more per year.
Low-flow showerheads include technology that reduces the amount of flow yet keeps pressure up, resulting in shower streams that are powerful and satisfying. They cost from $10 to $150, and installation is an easy DIY job that takes only minutes.
Replacing your pre-1994, water-guzzling toilet with a low-flow toilet prevents $90 worth of water costs from being flushed away. HE (high-efficiency) toilets use compressed air and electric water pumps to flush with less than 1 gallon of water; older models required up to 8 gallons.
8. Spend more time with family (share home improvement projects)
Spending quality time with your family takes quality planning — but it’s worth the effort. Rally your family around these fun-to-do projects to make every minute count:
Plant a tree. Pile the clan into the family wagon and shop for a tree that’ll become a new member of your family. Have your kids name it and help care for it. You might have to dig the hole, but everyone can take turns adding mulch and watering it. A bonus: planted where its shade will protect your house from summer sun, a $50-$100 tree cuts your yearly energy bill by $100 to $250.
Make a home emergency preparedness kit. Make a scavenger hunt of gathering up all the necessary supplies, such as flashlights, toilet paper, and duct tape, and assemble your kit during an evening together. It’s a good, non-scary way to teach small children about what to do if there’s an emergency.
9. Get fit (exercise your DIY skills)
Looking to trim a little of the old spare tire? Routine home maintenance and repair is a double win — you’ll burn calories while keeping your house in tip-top shape. Try these essential fix-ups and improvements from CalorieLab:
Building a fence: 340 calories per hour
Caulking windows and doors: 280 calories per hour
Cleaning rain gutters: 272 calories per hour
Installing ceramic tile: 238 calories per hour
Interior painting: 136 calories per hour
Chopping firewood: 340 calories per hour
Mowing the lawn: 306 calories per hour
Planting shrubs: 238 calories per hour
General gardening: 204 calories per hour
10. Be less stressed (use maintenance-free materials)
If you want less to worry about, install low-maintenance materials and products designed for durability and long, trouble-free service.
Fiber-cement siding lasts for 50 years or more. It’s weather-proof, and resists dents, fire, insects, and rot. It’s exceptionally stable, even with changes in humidity, so that paint jobs last longer than on wood and wood-fiber siding products.
LED bulbs last a phenomenal 20,000 to 50,000 hours between changes, or about 18 to 46 years when used for 3 hours each day. Although the initial cost is high (about $40 per bulb), LED bulbs pay for themselves in energy savings in about 10 years.
Classic ceramic tile comes in many colors and textures, but at its heart it’s incredibly tough, stain-resistant, and impervious to moisture. You can count on ceramic tile’s good looks to last for decades on floors and walls without needing repair or replacement.
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Published: December 30, 2011
When the new year arrives, promises and resolutions abound. Here’s the top-10 list of what the resolute home owner should accomplish this year.
Ready for 2012? Here it comes:
1. Lose weight (cut energy use)
2. Quit smoking (purify indoor air)
3. Get out of debt (budget for improvements)
4. Learn something new (educate yourself on home finances)
5. Get organized (de-clutter)
6. Volunteer (support your community)
7. Drink less (curb home water use)
8. Spend more time with the family (share home improvement projects)
9. Get fit (exercise your DIY skills)
10. Be less stressed (use maintenance-free materials)
1. Lose weight (cut energy use)
Your house is a glutton, gobbling energy like a starved elephant. Gain control by trimming energy use.
A good place to start is your HVAC ductwork. Ducts are notorious energy-wasters, leaking your heating and cooling air through holes and loose connections.
Sealing and insulating your ductwork can improve the efficiency of your heating and cooling system by as much as 20%, saving you $200 per year or more, according to Energy Star. You’ll make your home more comfortable, and a more-efficient system helps extend the life of your furnace, air conditioner, or heat pump.
Because ducts are usually hidden inside walls, ceilings, attics, and crawl spaces, sealing and insulating them may be a difficult and time-consuming DIY job. If you can’t reach all your ducts, concentrate on those that are accessible.
Use duct sealant — called mastic — or metal-backed tape to seal the seams, holes, and connections. Don’t use the confusingly named “duct tape,” which won’t provide a permanent solution. Be sure to seal connections at vents and floor registers — these are likely places for leaks to occur.
After sealing your ducts, wrap them in fiberglass insulation. Most hardware stores and home improvement centers have insulation wrap products made for ducts.
A professional heating and cooling contractor will charge $1,000 to $4,000 for the work, including materials, depending on the size of your home and accessibility to your ducts.
Insulating your ductwork may qualify for a rebate from your state or local municipality. Check the Database of State Incentives for Renewables & Efficiency.
2. Quit smoking (purify indoor air)
The EPA lists indoor air quality as one of the top environmental health hazards. That’s because indoor air is full of potential contaminants, such as dust, mold spores, pollen, and viruses. The problem is at its worst during winter, when windows and doors are shut tight.
You can help eliminate harmful lung irritants in your home with these maintenance and improvement tips:
Maintain your HVAC system and change furnace filters regularly. Use the highest-quality filters you can afford ($10-$20) and change every month during peak heating and cooling seasons.
Keep indoor air pristine by using low-VOC paints when you remodel your rooms.
Use localized ventilation in kitchens and bathrooms to remove cooking fumes, smoke, and excess humidity. Make sure ventilation systems exhaust air to the outside of your home, rather than your attic crawl space or between ceiling joists.
In fireplaces and wood stoves, burn real firewood rather than pressed wood products that may contain formaldehyde.
Use a portable air cleaner to help cleanse the air in single rooms. Portable air cleaner types include mechanical air filters, electrostatic precipitators, ion generators, and ultraviolet lamps.
Note that each type of air cleaner is designed to remove specific pollutants; no portable air cleaner removes all pollutants. Be wary of air cleaners that generate ozone — a known lung irritant.
3. Get out of debt (budget for improvements)
Creating a yearly budget for home improvement and maintenance helps prevent overspending, and encourages you to put aside money for major replacements — such as new roofing or a kitchen appliance — that come up every few years.
Protect your home finances by knowing how much you’ll probably spend each year. Data from the U.S. Census Bureau says that average annual maintenance and home improvement expenditures are about $3,300 per household. Leading lending institutions agree; HSH Associates and LendingTree.com place average costs of yearly maintenance and upkeep at 1% to 3% of your home’s initial price.
That means the owner of a $250,000 home should budget between $2,500 to $7,500 each year for upkeep and replacements. Have extra at the end of the year? Save it for more costly upkeep and replacement items down the road — you’ll probably need it then.
4. Learn something new (educate yourself on home finances)
Want a little education that goes a long way toward your financial health? Learning how to improve your insurance score can help you keep your home insurance premiums from getting out of hand. Here are a couple of easy lessons:
Letting credit card debt build up is a black mark on your credit history — and an indicator that you’re likely to file an insurance claim. The more claims, the higher risk you appear to be to insurance agencies, which lowers your insurance score. Low scores mean higher rates for home insurance.
Keep payments on loans up-to-date. Don’t miss payment deadlines; if you do, notify your lender that your payment is forthcoming. Delinquent payments signal insurers that you can’t manage your money — resulting in a lower insurance score.
Need some Home Owner 101? Any time is a good time to bone up on basic home maintenance skills.
5. Get organized (de-clutter)
No excuses — that clutter has got to go! Start by creating more storage space so you can stash stuff easily.
At wit’s end for new storage space? You’ve probably got storage solutions you didn’t know you had. Put up a high shelf between the walls of a narrow hallway, and tuck storage in out-of-the-way nooks, such as under-stairs spaces and between wall studs.
If your small home is pinched for space, don’t despair: There’s still room for storage. Shoe organizers ($20) do more than hold shoes — use them to store keys, notepads, and cell phones. At about $300 per drawer, have a cabinetmaker install drawers in the toe kicks of your kitchen cabinets for napkins, cookie sheets, and appliance manuals.
More: Resolution: Put Your House on a Diet
6. Volunteer (support your community)
In a world that often seems topsy-turvy, a little altruism helps restore balance. You can volunteer your time and energy to help others, and at the same time help promote safety and preserve the value of your neighborhood.
A neighborhood watch program fosters a sense of community and helps stop crime. Set up a meeting with neighbors to discuss concerns and priorities. Gather facts to present at the meeting: What kinds of crimes happen nearby? Are there patterns? Ask a local police representative to come to your first meeting to answer questions.
Start a community garden. Bring together neighbors for bonding, eating healthier, and saving on groceries. A 4-by-16-foot raised bed garden plot provides $200-$600 worth of food annually. As the organizer, you can expect to spend 20-30 per month for six months getting your community garden going.
7. Drink less (curb home water use)
Our houses are thirsty. The average household uses about 400 gallons of water each day, or almost $700 per year in water and sewer costs. Making a few simple changes, such as installing EPA-certified WaterSense products, could trim up to $200 from your annual water bill. Add to that energy savings from reduced costs to heat water, and your yearly savings could reach $300 or more per year.
Low-flow showerheads include technology that reduces the amount of flow yet keeps pressure up, resulting in shower streams that are powerful and satisfying. They cost from $10 to $150, and installation is an easy DIY job that takes only minutes.
Replacing your pre-1994, water-guzzling toilet with a low-flow toilet prevents $90 worth of water costs from being flushed away. HE (high-efficiency) toilets use compressed air and electric water pumps to flush with less than 1 gallon of water; older models required up to 8 gallons.
8. Spend more time with family (share home improvement projects)
Spending quality time with your family takes quality planning — but it’s worth the effort. Rally your family around these fun-to-do projects to make every minute count:
Plant a tree. Pile the clan into the family wagon and shop for a tree that’ll become a new member of your family. Have your kids name it and help care for it. You might have to dig the hole, but everyone can take turns adding mulch and watering it. A bonus: planted where its shade will protect your house from summer sun, a $50-$100 tree cuts your yearly energy bill by $100 to $250.
Make a home emergency preparedness kit. Make a scavenger hunt of gathering up all the necessary supplies, such as flashlights, toilet paper, and duct tape, and assemble your kit during an evening together. It’s a good, non-scary way to teach small children about what to do if there’s an emergency.
9. Get fit (exercise your DIY skills)
Looking to trim a little of the old spare tire? Routine home maintenance and repair is a double win — you’ll burn calories while keeping your house in tip-top shape. Try these essential fix-ups and improvements from CalorieLab:
Building a fence: 340 calories per hour
Caulking windows and doors: 280 calories per hour
Cleaning rain gutters: 272 calories per hour
Installing ceramic tile: 238 calories per hour
Interior painting: 136 calories per hour
Chopping firewood: 340 calories per hour
Mowing the lawn: 306 calories per hour
Planting shrubs: 238 calories per hour
General gardening: 204 calories per hour
10. Be less stressed (use maintenance-free materials)
If you want less to worry about, install low-maintenance materials and products designed for durability and long, trouble-free service.
Fiber-cement siding lasts for 50 years or more. It’s weather-proof, and resists dents, fire, insects, and rot. It’s exceptionally stable, even with changes in humidity, so that paint jobs last longer than on wood and wood-fiber siding products.
LED bulbs last a phenomenal 20,000 to 50,000 hours between changes, or about 18 to 46 years when used for 3 hours each day. Although the initial cost is high (about $40 per bulb), LED bulbs pay for themselves in energy savings in about 10 years.
Classic ceramic tile comes in many colors and textures, but at its heart it’s incredibly tough, stain-resistant, and impervious to moisture. You can count on ceramic tile’s good looks to last for decades on floors and walls without needing repair or replacement.
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