Real Estate Information

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

·       Refinancing your loan at a lower interest rate

·       Providing a different payment plan to help you get caught up

·       Providing a forbearance period if your situation is temporary

When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if

·       Your property is worth less than the total mortgage you owe on it.

·       You have a financial hardship, such as a job loss or major medical bills.

·       You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.

A qualified real estate professional can:

·       Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

·       Help you set an appropriate listing price for your home, market the home, and get it sold.

·       Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

·       Ease the process of working with your lender or lenders.

·       Negotiate the contract with the buyers.

·       Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include

·       A hardship letter detailing your financial situation and why you need the short sale

·       A copy of the purchase contract and listing agreement

·       Proof of your income and assets

·       Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

·       If you have only one mortgage, the review can take about two months.

·       With a first and second mortgage with the same lender, the review can take about three months.

·       With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

·       You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.

·       Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

·       Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

So you have decided to buy a home, but you might be a single mom or single women and you want to make sure you are safe and secure and also getting the best value for your money. You plan to live in this new home for a long time and you just want everything as good as it can possibly be. Well, here are some tips to make the process easier and help you to feel better about your new home and future. This way you can relax with fewer worries and enjoy the future.

Ask your real estate for advice
Real estate agents have experience selling to all types of people with all types of budgets and concerns. They would be the best source to start with for any major concerns or questions you may have.

Buy a home with attached garage
When it is winter or its dark outside you will feel more secure walking into your new home. You may even consider leaving porch lights on or having them on timers for extra safety.

Consider Gated Communities
These communities provide specific codes to allow entry and change these codes routinely to prevent theft and violence. They even close the gates as soon as you enter and close after you.

Install a security system
These are good anywhere, but may make you feel extra safe especially in a big city. These can alert you to theft, crime, poisoning, fire, and more and can usually be installed at a reasonable price and may lower your insurance payments.

Inspect Door Locks and Door Jams
Make sure all door locks work properly and will not get stuck or jammed when you need them the most.

Check locations of Bedrooms
Make sure that the bedrooms are located in a safe and secure place or that blinds or shades cover the windows completely to give you privacy and make you feel safer.

These tips will help make you as a single mom or single women to feel safer and more secure in your new home. This way you can focus on just enjoying your new place and your new future with peace of mind.

In the cycle of investment life—boom, bust and aftermath—the lessons only become clear after it’s too late.

So it goes with a once-hot real-estate investment that has left wreckage in its wake and a fresh reminder: When there’s a simple way and a complicated way to solve a problem, the middleman will almost always make more money off the complicated solution—but you might not.

Between 2004 and 2008, investors bought $13 billion worth of securities often called tenancies-in-common, or “TICs,” according to OMNI Real Estate Services of Salt Lake City. Also known as 1031 exchanges after a part of the tax code, TICs are complex deals that enable the sellers of real estate to roll their proceeds over into other properties without incurring capital-gains tax. TICs were tailor-made for a real-estate bubble.

The deals were structured as privately placed securities that don’t trade; up to 35 investors can own stakes in a TIC, while a newer format can be held by up to 499 investors. The buyers get a stake in the rental income—and potential sale—of one or more commercial, retail or residential properties.

Properly structured, 1031-exchange securities can enable investors to shelter real-estate sales from capital-gains taxes, to obtain regular income and to bequeath the asset to their heirs in a tax-efficient manner.

But Wall Street took an idea that is suitable only for a limited number of specialized, wealthy clients and sold it to ordinary investors—in some cases with disastrous results.

Consider what happened to Mary Boston, 70, of Dunlap, Tenn. In 2007 she and her husband, Lavaughn, sold their local theater for $1.2 million, net of debt. Their tax preparer suggested that a financial adviser might be able to help them arrange a 1031 exchange.

The couple sank the $1.2 million—essentially their entire liquid net worth—into two TICs that gave them a stake in two apartment complexes, one in Georgia and one in Texas. The offering documents projected an annual yield of 6.5%

Find out what 10 common poses people often strike indicate about what they are thinking. Plus, learn five ways to control your own body language.

Body language — the physical expression of thoughts and feelings — can sometimes convey messages more eloquently than the spoken word. Here are a few common movements that can help you easily decipher what others may be thinking, as well as master your own telltale body language.

Body language: Crossed legs or arms 
What it may mean: May indicate discomfort or defensiveness

Body language: Picking dust or lint from clothes 
What it may mean: May indicate a lack of interest or an objection to what is being said

Body language: Frequent fingering of a collar or touching the neck 
What it may mean: May show lying, shyness, or nervousness

Body language: Blushing 
What it may mean: May indicate shyness or embarrassment

Body language: Hands behind the head, leaning far back in a chair 
What it may mean: May signal arrogance; an “I’m in charge” attitude

Body language: Hands on hips, legs astride 
What it may mean: A “don’t-mess-with me” pose

Body language: Darting eyes 
What it may mean: May indicate shyness or lying

Body language: Fidgeting with a button or twisting a ring around a finger 
What it may mean: May indicate discomfort or shyness

Body language: Open arms 
What it may mean: May indicate a receptive attitude

Body language: Mirroring the behavior of someone else 
What it may mean: A sign of interest or physical attraction

Former heavyweight boxing champion Muhammad Ali isn’t happy with his retirement home in Louisville, Ky., and he’s blaming the former owners. 

Ali and his wife, Lonnie Ali, have filed a lawsuit against the former owners of the property, claiming the owners failed to disclose severe problems with the property when they had purchased it. The Alis say the home has had a range of problems since they moved in, everything from roof and chimney leaks to water intrusion and poor insulation, improper ventilation, and mold.  

In the lawsuit, the Alis allege the former home owners committed fraud by signing disclosure statements that they knew were false. The former home owners said in a statement that the legal filing is a “complete surprise” and that “there are no serious defects or conditions in the home that cannot be resolved.” 

The Alis purchased the home in 2006 for $1.9 million. Ken Jones, the real estate agent who represented the former home owners on the sale, told WHAS-11 News that the home was not listed for sale when the Alis inquired about buying it. 

“We insisted on an inspector. They had an inspection done,” Jones said. “There were several items noted.” But Jones says all of the items on the list were corrected before the sale went through.

We have the safest drinking water in the world—except for the pesticides that sometimes sneak in. And the rocket fuel. And the antibiotics …

Sparkling, flat, or flaming?

We’ve been flooded with scary information lately about the water we drink. Newspaper stories have pointed out that more than 60,000 chemicals are used across the country—and can get into our drinking water—though the EPA enforces limits on fewer than 100.

Other reports have warned of perchlorate, an ingredient in rocket fuel, which has been found in water systems in 26 states. And then there are the stories of families who can actually light their water on fire as it comes from the tap, not something you generally look for in your liquid refreshment.

We had questions. We wanted answers. What’s risky, what’s not, and what’s just plain hooey? Is bottled water really any better than tap? How can you make water safer in your home—and around the world? And how does water burn, anyway?

“Our Water Was Spurting and Bubbling Like Alka-Seltzer”

Jimmy and Victoria Switzer’s dream home has a nightmarish problem: They can’t drink or cook with the water that comes out of its taps.

Jimmy built the house in Dimock, a small town in northern Pennsylvania, from timber he split himself. “We wanted it to be the place for our daughters to come with their families,” says Victoria, 59. But a couple of years ago, they began noticing that their water seemed … strange. At first, there was just an orange tint and sediment in the bottom of a glass. Then, periodically, the washing machine would fill up with black sludge. Soon, Victoria says, “our water was spurting and bubbling like Alka-Seltzer.”

On New Year’s Day, 2009, a neighbor’s water well exploded. The Pennsylvania department of environmental protection determined that methane from a natural gas well had seeped into the water supplies of several Dimock families, including the Switzers’. A spark from a motorized pump is thought to have set off the blast. Several of the Switzers’ neighbors had so much gas in their water, they could actually light it on fire.

Dimock sits atop a rock formation called the Marcellus Shale, which stretches from New York State to West Virginia and contains huge amounts of natural gas. Gas companies have long known about the deposits, but only in the past couple of decades have improvements in a drilling method called hydraulic fracturing—or fracking—allowed them to tap these reserves. Fracking involves drilling a deep hole and then injecting about a million gallons of water, sand, and chemicals under high pressure. The jet of material breaks up rock, releasing gas that’s captured at the well head.

Environmental groups worry that toxic chemicals used in fracking (often a trade secret), along with the potential migration of methane gas, pose a threat not only to private water supplies but also to rivers and other sources of drinking water. Yet fracking has its share of fans in high places, including Pennsylvania governor Tom Corbett, who argues that with the right environmental protections, it can provide jobs and clean energy. Cabot Oil & Gas Corporation, which owns the wells on the Switzers’ property, says the process is safe and that water in the area naturally contains methane.

Nevertheless, the Switzers and other families with contaminated wells now receive free weekly water deliveries courtesy of Cabot. And the state of Pennsylvania has ordered the company to pay $4.1 million to the families with methane in their water. However, several of them, including the Switzers, refused the payout and are suing Cabot. “We have been living a nightmare,” says a defiant Victoria. “I will not let the gas company destroy my dreams.”

An Imperfect Safety Net
Should reports of purity problems make you feel good? (“Somebody’s paying attention!”) Or worried? (“What else is out there?”) Here’s what the experts say about the fear factor.

We used to have rivers of fire.
“Back in the 1970s, contamination came out of the end of a pipe. You could see it—we actually had the Cuyahoga River on fire. We’ve made progress on that, but now we have to worry about what happens when it rains. Water runs over city streets, suburban lawns treated with fertilizer and pesticides, and agricultural lands that may also have been treated or have animal feeding operations, and into our rivers and streams. Runoff is now thought by most folks to be the biggest source of water pollution.” — Lisa Jackson

We’ve been playing whack-a-mole.

“We’re trying to figure out whether we can address contaminants as groups rather than one at a time. Can we look at perchlorate together with other solvents that might act like it? That might help us break the cycle where every time we decide we need to regulate a chemical, we find out there’s a different one we need to worry about.” — Lisa Jackson

Worry uncaps the water bottle.
“Sales of bottled water have skyrocketed from around a gallon per person per year in the early 1970s to over 30 gallons today. There are four main reasons: We’ve become increasingly fearful of tap water, we don’t like the taste, and it’s become easier to find bottled water at the same time that it’s become harder to find water fountains. A football stadium in Florida was built with no water fountains—the day it opened, 60 people got heat stroke because they ran out of bottled water. The fourth reason is that we’ve been bombarded with ad campaigns telling us that bottled water will make us skinnier or sexier or healthier. But no one should assume that bottled water is better than tap water. Some bottled water isn’t monitored at all.” — Peter Gleick

Our drinking water system helped make this country great.
“Building a good tap water system is how we got rid of cholera, typhoid, and dysentery in the early 1900s.” – Peter Gleick

But it needs help.|
“A lot of the infrastructure for drinking water is very old. In the District of Columbia, some of it predates the Civil War. Lead pipes used to be standard back then! But updating it is expensive, and nobody is sure how we’re going to pay the bill.”– Olga Naidenko

There are a lot of known unknowns.
“We know perchlorate is out there. Now we need to know how much or how little is acceptable. Detection methods for contaminants are progressing really fast. But toxicology tests, which tell us how dangerous a contaminant is, take years to develop.”– Olga Naidenko

The Reader’s Digest Version:
“If you live in a big city in the United States, you should be confident of your tap water.                                                                                                                                                   

If you live in a small rural community with a little water system, you’re much more likely to be at risk. These small systems are more vulnerable to things like agricultural runoff and septic tank leakage.” — Peter Gleick

“Almost 290 million people in this country depend on 50,000 water systems for safe water. We don’t pay attention to this system, because it works—about 92 percent of Americans drink water that meets federal safety standards. Where we don’t meet the standards, we know what we have to do to get there.” — Lisa Jackson

The Experts
Head of the Environmental Protection Agency, Lisa Jackson is charged with keeping the nation’s public water systems safe.

Peter Gleick, PhD, is president of the Pacific Institute, which analyzes environmental issues, and the author of Bottled and Sold: The Story Behind Our Obsession with Bottled Water.

Olga Naidenko, PhD, is a staffscientist at the Environmental Working Group, an activist research organization.

As with most years, the upcoming big game sends consumers frantically dashing to the store to stock up on paper supplies, good eats, and spirits to indulge in. Even with the annual sale pricing on common staples like corn chips, sodas, and little weenies, it can be a financial drain to go all out for the event. Since many of the most frugal ideas are also more creative — and fun! — I’ve rounded up some expert tips to help you have the best blow-out without blowing up your budget. (See also: 45 Other Things to Do on Super Bowl Sunday)

Super Bowl Stew

Reminiscent of the fairy tale “Stone Soup,” this modern-day feast can easily accommodate as many guests as you can fit into your home and will likely get cheers from the crowd. Bjorn Karger, author of The Underground Guide to Living Frugal dishes on the details: “It needs everyone's help to win; just ask everyone if they could bring something to add to the stew. Have a simple broth going — water and a powdered soup-packet will do, or slice up an onion and add a few herbs and oil. Even with a small party of four to six guests you'll be surprised at how much food will come in and how fun it will be.” Ideas for ingredients guests can bring include potatoes, chicken, shrimp, okra, carrots, and even coconut and curry. Sounds like a fun and delicious way to bond!

Grilled Cheese Station

If the idea of a hotel waffle bar gives you tingles, you’ll likely be the type to appreciate a grilled cheese station at your next Super Bowl party. The idea is simple — set up a table with an electric griddle, and lay out an array of unique ingredients to create one-of-a-kind grilled cheese sandwiches. Don’t forget to include five or more varieties of cheese, and remember that the thicker the bread is, the more filling (and affordable) the sandwiches will be. Not a grilled cheese fan? Put a twist on it by offering the same set-up for Paninis or even quesadillas.

A Presentable Potluck

Is asking your guests to bring a side dish or even alcohol acceptable in today’s culture? Most definitely! Will it yield positive results? Not always. As many experts have pointed out, many people interpret the word “potluck” as “stop by the dollar store and pick up a few jumbo-sized bags of chips.” If you’re concerned that guests won’t put effort or creativity into their offerings, assign categories of food to people based on their last name (first letters of A-E bring one item, F-K another type, etc.) In any case, don’t depend on guests to provide the bulk of the food and drink; always have a main course and a substantial amount of non-alcoholic offerings to go around.

Budget Beverages and Tableware

While most people assume that food will be the most expensive part of the party, drinks and tableware can be even more costly. Wona Miniati, co-author of the popular Cooking With Trader Joe's cookbook series, suggests starting simple where tableware is concerned: “Thrift stores are a great place to pick up one-off pieces. A collection of non-matchy-matchy plates and glasses can be cute and eclectic.” She also likes the idea of serving plain water with a selection of fancier garnishes like fresh citrus fruits, cucumber, or pomegranate seeds. For an affordable spritzer, combine one part juice with one part sparkling water.

Have a safe and fun super bowl weekend!

Increase your chances of getting your dream house in a competitive housing market, and lower your chances of losing out to another buyer. 

1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller.

2. Stay in close contact with your real estate agent to find out about the newest listings. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast. 

3. Scout out new listings yourself. Look at Web sites such as REALTOR.com, browse your local newspaper’s real estate section, and drive through the neighborhood to spot For Sale signs. If you see a home you like, write down the address and the name of the listing agent. Your real estate agent will schedule a showing.

4. Be ready to make a decision. Spend a lot of time in advance deciding what you must have in a home so you won’t be unsure when you have the chance to make an offer.

5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t go too low to get a deal. In a tight market, you’ll lose out.

6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.

7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.

1. Property disclosure form. This form requires you to reveal all known defects to your property. Check with your state government to see if there is a special form required in your state. 

2. Purchasers access to premises agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move. 

3. Sales contract. The agreement between you and the seller on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form. 

4. Sales contract contingency clauses. In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies — such as the buyer’s need to sell a home before purchasing yours. 

5. Pre- and post-occupancy agreements. Unless you’re planning on moving out and the buyer moving in on the day of closing, you’ll need an agreement on the terms and costs of occupancy once the sale closes. 

6. Lead-based paint disclosure pamphlet. If your home was built before 1978, you must provide the pamphlet to all sellers. You must also have buyers sign a statement indicating they received the pamphlet.

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible. 

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life. 

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. 

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.