BUSH SIGNS HOUSING BILL

Bush signs housing bill to provide mortgage relief

 

July 30, 2008

WASHINGTON (AP) — President Bush today signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.

Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.

“We look forward to put in place new authorities to improve confidence and stability in markets,” White House spokesman Tony Fratto said. He said that the Federal Housing Administration would begin right away to implement new policies “intended to keep more deserving American families in their homes.”

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.

It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.

The House passed the bill a week ago; the Senate voted Saturday to send it to the president.

Bush didn’t like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.

But he withdrew that threat early last week, saying hurting homeowners could not wait — and even blaming the Democratic Congress’ delays in action for forcing an imperfect solution.

Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests.

Paulson’s request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.
Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.

The bill takes several approaches to curing the ailing housing market.

It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.

The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.

The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.

It goes far beyond addressing the current crisis, however.

The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower’s payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.

The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new “consultative” role overseeing the companies.

The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.

Democratic leaders, recognizing that the measure could be one of the last items to become law during what’s left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.

Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter

FEDS MAY HELP MANTECA BUY HOMES

Feds may help Manteca buy homes
McNerney vows to help Manteca get share of $3.9B in foreclosure grants

Dennis Wyatt
Managing Editor

President Bush’s signature could put Manteca into the business of buying foreclosed homes.

The far-reaching housing package that breezed through Congress and then sent to Bush that’s designed to shore up mortgage lenders and strengthen the housing market and economy includes $3.9 billion in grants earmarked for local governments to buy and rehabilitate foreclosed properties. The money is being directed to particularly hard hit communities. Manteca since December has been part of the hardest hit region in the nation as the greater Stockton area has been at the top of the foreclosure lists more often than anyone else in month-to-month statistics.

“Foreclosures are a huge problem in our region,” said Congressman Jerry McNerney, D-Pleasanton, who voted for the bill. “Families have lost their homes, homeowners have seen property values nosedive and neighborhoods have become destabilized. The bill we passed this week will help get our economy back on track. One of the important provisions of the bill deals with the neighborhood-wide ripple effect that takes place when a home is foreclosed, driving down other prices in the area, reducing state and local tax revenues and inviting crime.

“The bill provides resources to allow cities and states to buy up and rehabilitate foreclosed properties so that families can move in. I look forward to working with local officials to ensure that some of these funds are directed to Manteca and other cities in the county.”

Assistant City Manager Karen McLaughlin confirmed that the city will be in contact with McNerney’s office and the appropriate federal agencies to make sure Manteca can access all tools at their disposal to deal with the foreclosure mess in Manteca.

Nearly 80 percent of the 460 existing homes for sale currently in Manteca are under duress. There are 175 homes that have been foreclosed on that are up for sale plus 180 short sales – homes that are moving toward foreclosure. Only 105 homes listed are not under duress.

Nearly 90 percent of the 497 homes that have closed escrow inside the city limits since January have been the result of the foreclosure process.

Manteca Mayor Willie Weatherford said he would of preferred to see a program from Washington that would have worked with first-time buyers to purchase foreclosed homes but since the bill (is shaped) in the manner that it is he wants to make sure Manteca can take advantage of it.

Details of how the worst impacted cities can benefit from the $3.9 billion in grants have yet to be released.

It appears the availability of grants works into an expressed commitment by the Manteca City Council made in previous months to direct redevelopment agency resources as much as possible to help people purchase foreclosed homes.

The federal grants may take it a step further as it would make funds available to agencies such as the Manteca RDA to purchase and rehabilitate the worst foreclosed properties and convert them into affordable housing.

It is not clear what strings are attached. The RDA could end up selling the homes to those in the moderate to low moderate household targeted in most affordable housing programs or keep them possibly to rent.

The bulk of the bill, though, allows the Federal Housing Administration to insure up to $300 billion worth of refinanced mortgages

That would allow up to 400,000 struggling families to possibly keep their homes with cheaper rates as long as their lenders volunteer to take losses up front instead of risking going through the foreclosure process. That means more than 1.4 million homes are expected to be taken back by lenders this year.

FORECLOSURE RELIEF BILL MAY HELP SAN JOAQUIN VALLEY

Foreclosure relief bill might bring help to San Joaquin Valley

$4B program expected to win Senate ap

By MICHAEL DOYLE
BEE WASHINGTON BUREAU

WASHINGTON — The House on Wednesday approved a controversial housing bill that supporters say could offer some relief for the San Joaquin Valley’s foreclosure crisis.

California and valley agencies, for instance, could purchase some of the region’s myriad foreclosed and abandoned homes with the help of a new $4 billion grant program.

“This is just a stopgap,” said Rep. Dennis Cardoza, D-Merced, “but it’s the best we can do today.”

Cardoza joined other lawmakers in contributing provisions to the forbiddingly technical, 694-page bill that has bounced around Capitol Hill for about a year. President Bush this week dropped his earlier veto threats, giving a green light for final approval.

The bill was approved 272-152. The Senate is expected to pass the bill Friday or Saturday.

The new federal program follows an announcement Monday by Gov. Schwarzenegger that a state program has been established to boost the valley’s economy by helping first-time buyers purchase foreclosed houses in Stanislaus, San Joaquin and Merced counties at discount prices and with reduced-rate loans.

That state initiative, called the Community Stabilization Home Loan Program, is expected to help 800 to 1,000 families purchase vacant bank-owned properties. Nearly 100 homes in the Northern San Joaquin Valley are eligible, and more are expected to be added each week.

Schwarzenegger said the $200 million program will “pump up” the region’s economy by boosting real estate sales and reducing the number of foreclosures on the market, which has been reeling from escalating foreclosures and declining values.

A big part of the federal bill props up Fannie Mae and Freddie Mac, the giant government-sponsored mortgage finance companies that together own or guarantee half of the nation’s mortgage debt.

The $4 billion grant program would enable state and local housing agencies to “purchase and redevelop” abandoned and foreclosed homes within 18 months. The government agencies could buy the properties at a discount and then choose to sell, rent or demolish the homes.

Lawmakers declare that the grants should target “areas hit hardest by foreclosures.” This will be determined by a formula that includes the number of foreclosures, the extent of subprime lending and other factors set by the Department of Housing and Urban Development.

The word “California” does not appear anywhere in the Housing and Economic Recovery Act of 2008. Nonetheless, the state in general and the San Joaquin Valley in particular could get a fair-sized chunk of the money.

More than 17,000 Northern San Joaquin Valley homes have been lost to foreclosure during the past year, according to data released Tuesday.

The number of homes repossessed by lenders continues to skyrocket in Stanislaus, San Joaquin and Merced counties, according to DataQuick Information Systems.

This April, May and June, for instance, 2,207 homes were foreclosed on in Stanislaus, pushing the county’s one-year total to 5,554. California lost 63,031 homes to foreclosure this spring and 166,087 during the past year.

San Joaquin and Merced counties have the highest foreclosure rates in the United States. In San Joaquin, 3,185 homeowners lost their property to foreclosure this spring, pushing its one-year total to 8,366. In Merced, 1,223 homes were foreclosed this spring, pushing its one-year total to 3,174.

The foreclosure problems in the valley aren’t likely to end soon, because a record number of “notices of default” were filed in almost all of California counties this spring, including Stanislaus, San Joaquin and Merced. Notices of default are the first step in the foreclosure process.

“We want to keep as many people in their houses as we can,” said Democratic Rep. Jerry McNerney of Pleasanton, whose district includes part of San Joaquin County. “This is a bill that really does help people.”

McNerney wrote a provision that boosts loan limits for veterans.

Cardoza, McNerney and Rep. Dan Lungren, R-Gold River, voted for the bill. Rep. George Radanovich, R-Mariposa, voted no.

First-time buyers would get a $7,500 refundable tax credit under the bill. Proponents say this could help more people buy the valley’s foreclosed houses.

The bill provides $180 million for financial counseling and legal assistance to help current homeowners. The bill targets some of this money for the 100 U.S. metropolitan areas with the “highest home foreclosure rates,” which will guarantee funding for the valley.

Foreclosure Relief Program

GOVERNOR ANNOUCES FORECLOSURE RELIEF PROGRAM

 

The state unveiled a $200million loan program Monday aimed at helping ease a small part of the foreclosure crisis by helping first-time home buyers purchase foreclosed properties in the eight most heavily affected counties.

Announcing the Community Stabilization Home Loan Program in front of a foreclosed north Stockton house, Gov. Arnold Schwarzenegger said the new effort is no “magic bullet” to solve the foreclosure crisis.

But it will help 800 to 1,000 families – no investors or speculators – step into the American dream by buying foreclosed properties at reduced prices, lower mortgage insurance premiums and lower mortgage interest rates, he said.

“We have taken a number of actions to help prevent foreclosures, but we also want to address the many already foreclosed-on homes that sit vacant in our neighborhoods today,” Schwarzenegger said. “This program will not only make it easier for families to purchase their first home but will also help stabilize neighborhoods that have homes sitting empty. No one single effort can solve our nationwide housing crisis, but together these measures make an important difference in California’s neighborhoods.”

Only certain vacant foreclosed houses in all or part of eight counties will qualify for the loans, to be administered by the California Housing Finance Agency, or CalHFA. That organization was chartered in 1975 as the state’s affordable housing bank to make below-market-rate loans via the sale of tax-exempt bonds.

Loans will be available for CalHFA-listed foreclosure properties throughout San Joaquin, Stanislaus, Merced and Riverside counties, as well as essentially all of Oakland, and certain ZIP codes in Contra Costa, San Bernardino and Los Angeles counties.

Qualifying properties are those owned by four major financial institutions that have agreed to a reduced purchase price to improve affordability. CitiMortgage and its affiliates; Premier Asset Services of Wells Fargo Bank; Fannie Mae; and HomeEq Servicing have agreed to reduce the set purchase prices by 12 percent below the current estimated value.

This hardly means open season on deals for most foreclosure properties. Last month, there were more than 4,500 existing single-family homes on the market in San Joaquin County – most of those as a result of foreclosure.

According to CalHFA, there are 44 foreclosed houses on the San Joaquin County list, but the agency’s marketing director, Ken Giebel, said he expects that number to grow as more financial institutions join the program.

Asked about the relatively small loan program, Schwarzenegger said: “Every marathon starts with the first step. … I think this is a great start.”

The news conference was staged in a quiet, tree-lined neighborhood of modest, zero-lot-line, single-family homes built around Grupe Lake, southwest of Hammer Lane and Interstate 5.

Neighbors on Lighthouse Drive were outnumbered by the crush of media, state government officials and aides, local dignitaries and law enforcement.

Ken Vogel, chairman of the San Joaquin County Board of Supervisors, praised the program as a way to help resuscitate foreclosed properties.

Kelly Shields of Stockton attended the news conference with her husband as a kind of poster children for the program.

They bought their home six years ago and faced foreclosure before finding help from the state, enabling them to keep their home.

She applauded the new loan program.

“It’s good, because then more people can afford homes,” she said.

In a telephone interview, Jon Searles, spokesman for mortgage giant Fannie Mae – formally the Federal National Mortgage Association – said that although the agency is marketing and selling many of its foreclosure properties, it does have “a substantial inventory” of properties it needs to move.

“So this will help first-time home buyers, and it also will help us turn over the properties at the same time.”

FOR MORE INFORMAITON GO TO: jlealsellshomes.com

VA Loan Eligibilty

General Rules for EligibilityMilitary Service Requirements for VA Loan Eligibility:Note:  Applications involving other than honorable discharges will usually require further development by VA.  This is necessary to determine if the service was under other than dishonorable conditions. Wartime – Service During: WWII: 9/16/1940 to 7/25/1947 Korean: 6/27/1950 to 1/31/1955 Vietnam: 8/5/1964 to 5/7/1975 You must have at least 90 days on active duty and been discharged under other than dishonorable conditions.  If you served less than 90 days, you may be eligible if discharged for a service connected disability. Peacetime – Service during periods: 7/26/1947 to 6/26/1950 2/1/1955 to 8/4/1964 5/8/1975 to 9/7/1980 (Enlisted) 5/8/1975 to 10/16/1981 (Officer) You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions.  If you served less than 181 days, you may be eligible if discharged for a service connected disability. Service after 9/7/1980 (enlisted) or 10/16/1981 (officer) If you were separated from service which began after these dates, you must have: Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability; Been discharged with less than 181 days of service for a service-connected disability.  Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government. Gulf War – Service during period 8/2/1990 to date yet to be determined If you served on active duty during the Gulf War, you must have: Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or Been discharged with less than 90 days of service for a service-connected disability.  Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government. Active Duty Service Personnel If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service. Selected Reserves or National Guard If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and Were discharged with an honorable discharge, or Were placed on the retired list, or Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or Continue to serve in the Selected Reserves Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability. You May also be determined eligible if you: Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or Are a spouse of a serviceperson missing in action or a prisoner of war Note:  Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit.  However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility.  VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004. Eligibility may also be established for: Certain United States citizens who served in the armed forces of a government allied with the United States in WW II. Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration,  merchant seaman with WW II service, and others.

How Escrow Works

 

 

 

I found this helpful information on Yahoo. This explains the escrow process.

For more information go to:www.jlealsellshomes.com

How Does Escrow Work?

 

If you’ve ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you’re doing something similar by opening an escrow account.

How it works

When you put money in escrow it is held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. The agent’s role is to carry out the instructions agreed upon by both parties. The money is released when all the terms of the agreement are met. Escrow can be involved in anything from multimillion-dollar building projects to purchases made on online auction sites.

When it’s used

When your mortgage closes, your lender will usually require you to open an escrow account to cover property taxes and homeowner’s insurance. You’ll make an initial deposit, followed by payments to the account every month. (Usually these are added to your regular mortgage payment.) The escrow agent will then release these funds as your taxes and insurance premiums come due.

Its purpose

The idea is to protect the lender by ensuring that you pay your taxes and insurance on time. If you default on your property tax, for example, your municipality can put a lien on the house, which would make it difficult to sell. Or if your house burns down and you’ve neglected to pay the insurance, the lender would be left with no collateral.

How you benefit

Escrow can benefit borrowers by helping them spread insurance and tax expenses evenly over 12 payments. For example, assume your yearly property taxes are two payments of $1,000 each, and your insurance is $400 annually. If you paid these directly, it would mean three large payments a year; your escrow costs, however, would be a manageable $200 a month.

Escrow payments

Your escrow account will have a built-in cushion — if you miss a payment, the lender must still be able to pay your accounts on time. However, federal law prohibits lenders from requiring more than two months. expenses in escrow. And because your tax and insurance costs will change slightly from year to year, the lender will review and adjust your escrow payments annually.

When escrow may be waived

In most states, the money you place in an escrow account earns no interest for you. For that reason, many borrowers prefer to pay their taxes and insurance directly. Lenders may agree to this if your down payment is more than 20 percent, although some will raise your interest rate slightly to compensate. Once you agree to putting funds into an escrow account, however, it is difficult to cancel it, so make sure you fully understand the arrangement before your mortgage closes.

 

Gov. Schwarzenegger Helps Veteran’s

Governor Schwarzenegger Supports Military Veterans, Signs Legislation to Help Recent Veterans Buy Homes

Also Highlights Support of Two Additional Veterans Related Bills

Governor Schwarzenegger today signed SB 1572 by Senator Mark Wyland (R-Carlsbad), which places the Veterans Bond Act of 2008 on the Nov. 4, 2008 statewide ballot.  If approved by voters, the measure would help thousands of veterans of recent conflicts buy a home or farm through the state’s CalVet Home Loan program.  The bond act would have no impact on the state’s General Fund because veterans repay the bond costs through low-interest mortgages.  

“The Veterans Bond Act will help California’s veterans achieve the American dream of homeownership,” said Governor Schwarzenegger. “I’m asking voters to say yes in November so that veterans who risked their lives in places like Kuwait, Iraq and Afghanistan will be eligible to join the more than 420,000 others who have bought a home with a CalVet loan – at no expense to taxpayers.”

The Veterans Bond Act of 2008 asks voters to approve $900 million in Veterans General Obligation Bonds, which will allow the California Department of Veterans Affairs to fund the purchase of homes and farms for veterans under the CalVet Home Loan Program. This money will fund approximately 1,300 low-interest loans for California veterans without expense to the state’s General Fund. 

The bond act also provides for the provision of CalVet Home Loans to veterans of recent conflicts.  Previously, only veterans who served from the end of World War I to the Vietnam era were eligible to apply for CalVet home loans.     

The Governor noted that the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act), signed into law by President Bush last month, was actively pushed by the Schwarzenegger  Administration and that today’s bond act is the next step toward providing low-interest loans to veterans of recent wars. The federal legislation (HR 6081) makes veterans who entered active military duty after December 31, 1976 eligible to apply for Qualified Veterans Mortgage Bond funded loans under the state’s longstanding CalVet Home Loan Program.

Since 1922, the CalVet Home Loan Program has helped more than 420,000 wartime veterans buy a home or farm, at no expense to the state’s General Fund.  The program currently has more than 13,000 active loans to veterans in this state and the costs of administering the program and servicing the debt on the bonds is covered by the payments veterans make on their loans.

Today, the Governor also signed SB 1680, a bill authored by Senator Mark Wyland (R-Carlsbad).  This bill allows California Community Colleges and the California State University, and encourages the University of California, to coordinate services for students who are veterans or members of the military by designating Military and Veterans Offices to provide specified services

At the event, the Governor noted he looks forward to signing SB 1455 when it reaches his

What To Look For Inside The House

I found this article on the internet.  Lets the buyer know what to look for when you are looking at houses.  Remember, it is important to have a home inspection on any property you intend to buy. 

For more information go to my website: jlealsellshomes.com

 

Buying a house: what to look for inside the house

By Sarah Mills 

 

Buying a home can be a bit like buying a carton of eggs. You never know what you’re going to find when you look inside — bits might be missing, cracked, old, broken or rotten. So you have to check carefully to make sure you are getting what you pay for.

First-home buyers usually visit a few properties before making a final decision and this can be a test for the memory, so take a digital camera and a pen and paper. Take photos and notes about the features, colors and negative and positive points of each residence. Then, when reviewing the properties in the comfort of your home, tick them off against your wish-list.

There are some tried and tested things you should check for on the inside of the house. Mainly you want to identify anything that might be an extra cost, ranging from minor replacements to serious structural work.

Here are a few nasty surprises to keep an eye out for:

·                         Turn the taps on in the kitchen, bathroom and laundry to check the water pressure, performance and drainage. Check for dirty water. You might like to leave the tap running for a minute and it can’t hurt to drink the water for a taste test.

·                         Check the hot water system. Is it big enough for your needs? A family will need more hot water than a couple. Also check for leaks, rust and age. Replacing a busted hot water system can be expensive and is not the sort of thing you can put off. If it is gas, check for the system’s last servicing.

·                         Good insulation can save hundreds on heating and cooling bills. A quick visit through the manhole should give you some idea of its condition. Also check for cavity wall insulation.

·                         Are there major cracks in the walls or do the doors stick? This can be a sign of subsidence. This can be an extremely expensive problem to fix and is usually not covered by house insurance.

·                         Be extra cautious if the house has been recently painted as it could be masking serious problems.

·                         Take a flash light to shine on the paintwork in dimly lit rooms to see if there are any obvious structural defects that are not clearly visible in the dark or have been painted over.

·                         Check for damp. Feel the walls and look for signs of peeling or bubbling paint. Watermarks are a dead giveaway, as is mould. Fixing damp can sometimes run well into the tens of thousands of dollars. If freshly painted, rely on your sense of smell.

·                         Bathrooms often have mould. Mould can’t just be painted over. A serious problem will usually involve installing a new ceiling/wall and better ventilation.

·                         Check all the windows. Do they open and slide easily? Do they have cracking paint? This could be a sign of rot. Press your finger into the wood. If it’s soft, it is rotten.

·                         Tap the walls to do a preliminary termite check. You can get instruments which measure humidity behind the walls as this is often a sign of infestation. Termites are not usually covered by house insurance so make sure you also get a professional in if you decide to buy the house.

·                         Good storage, like built-ins and sheds, can save you over time whereas a lack of storage is bound to cost.

·                         Are there any unusually shaped, difficult to furnish rooms?

·                         Make sure there are sufficient power points and that they are at your preferred height and position in the room. New points will cost money.

·                         Check for Internet access.

·                         Check that the toilet is on the same level as the bedrooms for easy access. If it is a two-story house, it is nice to have a toilet on both levels.

·                         Check the location of bedrooms. Parents often want children to be on the same level as them.

·                         Do you like the wall colors? Repainting can be expensive if you employ a professional. However, if you don’t mind painting yourself, try to look past the psychedelic paint job, as it can be a relatively inexpensive project that can add value to your home.

·                         Old-fashioned electricity switches can point to old wiring.

·                         Visit the house on a rainy day to check for leaky roof, walls or ceilings.

·                         Are there cracked tiles or loose grout in the bathroom or kitchen?

·                         Check for fly and mosquito screens. In summer, these will be a must and are likely to cost up to $1000.

·                         If you intend renovating, check to see if there are floorboards under old carpets, and their condition. People sometimes do insane, cheap things like staple the carpet to the floor and use industrial glue for their tiles. Both these things will add significant expense and time to floor polishing costs. Carpet should be easy to raise without many rusted nails or staples.

·                         Kitchens and bathrooms are the most expensive rooms in the house to renovate so pay close attention to the age and quality of cupboards, benches, plumbing fittings and tiling.

·                         In old houses in particular, check for holes in floorboards and cracks and fissures that let in vermin and cockroaches.

·                         Measure spaces in kitchens and laundries to make sure your appliances such as refrigerators, washing machines, dishwashers and microwaves fit. Failure to fit could cost a couple of thousand dollars in replacements.

·                         Make sure your furniture fits in the rooms.

·                         Check for the materials used in cupboards and benches. Good materials will last a lot longer.

·                         Check out the floor coverings. Will they need to be replaced and if so, when?

Does the house have central heating or air conditioning? If so, how old are they? Check to make sure they are functioning well

$300 Billion Mortgage Rescue

This article came out in the Modesto Bee about the $300 billion dollar mortgage rescue.  For more information go to: www.jlealsellshomes.com

  

Senate Pass Foreclosure Rescue

By JULIE HIRSCHFELD DAVIS , Associated Press Writer

WASHINGTON —

A mortgage rescue to help hundreds of thousands of struggling homeowners avoid foreclosure and get more affordable, safer loans passed the Senate overwhelmingly Friday, but it faces a bumpy road amid continuing turmoil in the housing market.

The 63-5 vote reflected a keen interest by Democrats and Republicans to send election-year help to distressed homeowners with economic issues topping voters’ concerns.

The plan lets homeowners buckling under mortgage payments they can’t afford keep their homes and get more affordable mortgages backed by the Federal Housing Administration. Banks that agreed to take substantial losses on those distressed loans could avoid costly foreclosures and be assured of recovering at least some money.

The new program would let the FHA insure as much as $300 billion in new mortgages, helping an estimated 400,000 homeowners.

It still faces challenges, however, with the House planning to rewrite key details and the White House threatening a veto without major changes.

“It’s not the final stop, but it is a major stop in getting this bill done,” said Sen. Christopher Dodd, D-Conn., chairman of the Banking Committee. “For those who said this Congress cannot come together in a bipartisan fashion to do something responsible about housing, this bill does that.”

Rep. Barney Frank, D-Mass., the Financial Services Committee chairman and an architect of the bill, says the few but significant revisions House leaders are seeking could be made in as little as one week.

Dodd said he was expecting minor “tweaks” that could be dealt with quickly.

But key players are bracing for intense negotiations to resolve the differences. They hope to smooth over disputes with the White House at the same time, with an eye toward producing a bill President Bush could sign later this month.

The White House Friday renewed its warning that Bush would veto the Senate-passed bill without revisions, citing $3.9 billion in the measure for buying and rehabilitating foreclosed properties it said would help lenders, not homeowners.

The measure includes a long-sought modernization of the FHA and would create a new regulator and tighter controls on Fannie Mae and Freddie Mac, the government-sponsored mortgage giants. It also would provide $14.5 billion in housing tax breaks, including a credit of up to $8,000 for first-time home buyers.

Democrats are divided over important elements of the plan, including limits on loans the FHA may insure and Fannie Mae and Freddie Mac may buy. The Senate measure sets them at $625,000, while House leaders – including Speaker Nancy Pelosi, D-Calif. – want the cap as high as $730,000.

House leaders also oppose the immediate effective date of the Senate plan, preferring to phase in the new regulations for Fannie Mae and Freddie Mac over six months.

“We’d have a hard time agreeing to that,” Dodd told reporters Friday. He called a Capitol Hill news conference to dispel fears about the financial health of Fannie Mae and Freddie Mac as their stocks plummeted on reports that the government was considering taking over one or both of them.

Another key point of dispute is the funding in the Senate measure for buying and fixing foreclosed properties. The House’s band of conservative “Blue Dog” Democrats oppose the money, arguing that it would swell the deficit unless paired with cuts or tax increases to cover the cost.

But many Democrats, particularly members of the Congressional Black Caucus, are fighting to keep the funding, which they say will help prevent the communities hardest hit by the housing crisis from sliding into blight.

“There are people who tell me to ignore” that threat, Frank said in a statement Friday. “But there is too much that is important in this bill, and it has already been too long delayed by procedural problems in the Senate, for us to risk the further delay involved in a veto.”

He said he was working to find a way to shift the funds to a must-pass spending bill that would be approved before lawmakers scatter for the year in September.

Dana Perino, Bush’s spokeswoman, said the money should be stripped out of the measure “so that they can get a housing bill to the president that he could sign right away.”

Sen. Barack Obama, D-Ill., the presumptive presidential nominee, said Bush should drop his opposition to the housing plan and other Democratic efforts to ease economic pain.

“I call on the administration to support this bill along with a second emergency stimulus package to jumpstart the economy and build on this important start to advance more rigorous measures to protect homeowners from foreclosure.”

With the administration scrambling to tamp down on investor fears about Fannie Mae and Freddie Mac, Perino called the new regulations in the measure for the two mortgage giants its “most important feature.”

Lawmakers and the Bush administration agree on the central concept behind the housing package: allowing the government to backstop new mortgages for struggling homeowners.

To make it more palatable to Republicans, the Senate measure would take responsibility for any losses away from taxpayers and instead cover them by diverting a newly created affordable housing fund drawn from Fannie Mae and Freddie Mac profits.

Selling Homes in a Cooling Market

I found this article on the Comcast website.  Thought this would be an interesting read for all the home sellers out there.  Pricing you house right is very important if you want to sell it fast.  For more information go to my website: www.jlealsellshomes.com

 

Selling Your Home in a Cooling Market

by Stacey L. Bradford

SELLING YOUR HOME in a cooling market is stressful at best. A couple years ago, headlines screamed of bidding wars and of homes moving off the market within days. No more. Across the country, new home prices are down from one year ago. And many predict housing prices will fall farther before they’re done.

So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what’s selling, what’s not and why. Finally, don’t expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.

That said, can you still get a good price? You bet. Here are some more tips to help you get top dollar for your house.

Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. “The first question a buyer asks is how long the house has been on the market,” says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. “If it’s been on a while, they ask what is wrong with the house.”

Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. “Overpricing leads to low bids,” Liebman says. “Proper pricing leads to high bids.”

So how do you set the right price? First, take a look at recent sales in your neighborhood. And don’t forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But in markets glutted with inventory, these items are unlikely to add much value to a house, says Jim Cory, editor at Replacement Contractor magazine. And, if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.

Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. “If your grass isn’t green, make it green,” Liebman says. “If you have weeds, get rid of them. If the shrubs are overgrown, cut them.” Even small, inexpensive potted flowers can make your home seem more inviting.

Renovations
Some renovations are worth an investment. An extra bathroom always makes a home more saleable, says Cory. A few cans of paint and new carpeting could also provide a handsome return. In addition, given the rising energy costs, buyers are now looking for energy-efficient improvements like reroofing and new siding and windows, says Cory.

Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. “If there are any doubts about the mechanical functions, a buyer will walk,” Cory says.

Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don’t forget to paint over ugly water stains. If you don’t, a potential buyer could see it as a warning sign of a larger issue.

If you’re inclined to leave your home as is, prepare to drop your asking price. “I hate to say it, but price cures everything,” says Era Key Realty’s Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.

Additional Tips
There’s some basic advice that’s worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group’s Liebman even suggests fresh flowers. “Baking cookies could be a bit silly and obvious,” she says.

How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.