You or someone you know may be facing challenges keeping up with your mortgage payments OR you may just want to reduce your interest rate to take advantage of the fixed lower interest rates. If you are feeling overwhelmed and wondering where to get help, now there is really help!
In February 2009, the Obama Administration introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis to get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure.
Get the information you need NOW to MAKE YOUR HOME LOAN AFFORDABLE. The Making Your Home Affordable website gives information on the five programs now available. These 3 links were taken from the site:
1. Explanation of the 5 Programs available (inlcuding program to reduce 2nd mortgage payments) - http://makinghomeaffordable.gov/eligibility.html
2. Documentation Forms needed: http://makinghomeaffordable.gov/requestmod.shtml
3. Lenders who service these programs - http://makinghomeaffordable.gov/contact_servicer.html
All these links are on the same site. www.MakingHomesAffordable.gov. They are all govenment sponsored programs that give incentives to the banks to work with homeowners to KEEP their homes. You can appy ONLINE
SHARE THIS INFORMATION WITH OTHERS!!!
Also feel free to call me if you have any questions, choose to sell your home, or want information about the short sale process.
Clara Lyons, Realtor/Realtist
NJ State President NAREB, National Assn of Real Estate Brokers (NAREB)
I turn real estate dreams into reality! - One Home At A Time!
856-264-1058
ClaraSellsHomes@gmail.com
Know anyone thinking of buying or selling? I love referrals!!
Wednesday, September 22, 2010
Wednesday, July 7, 2010
As you may have heard, the real estate industry received a big win today when President Obama signed two important pieces of legislation into law.
The first one extends the closing deadline for the homebuyer tax credit until September 30, 2010, for any transactions that had ratified contracts in place as of April 30, 2010, but have not yet closed. Previous blog was about the Senate approval...Now that the President has signed it is official naitionally. Real estate agents working with buyers who fit into this category, please let them know about the extended deadline.
In addition, the National Flood Insurance Program, which provides flood insurance to homeowners in participating communities in flood-prone areas who could not otherwise obtain coverage due to cost or ineligibility, was also extended until September 30, 2010. As a result, buyers in these areas can now obtain mortgages and transactions can move forward. This bill is retroactive and covers the lapse period from June 1, 2010, to the date of enactment of the extension.
If you or anyone you know is interested in purchasing real estate, please:
Contact Clara at 856-264-1058
FREE: Find home values in your neighborhood...Click on Home Values link
The first one extends the closing deadline for the homebuyer tax credit until September 30, 2010, for any transactions that had ratified contracts in place as of April 30, 2010, but have not yet closed. Previous blog was about the Senate approval...Now that the President has signed it is official naitionally. Real estate agents working with buyers who fit into this category, please let them know about the extended deadline.
In addition, the National Flood Insurance Program, which provides flood insurance to homeowners in participating communities in flood-prone areas who could not otherwise obtain coverage due to cost or ineligibility, was also extended until September 30, 2010. As a result, buyers in these areas can now obtain mortgages and transactions can move forward. This bill is retroactive and covers the lapse period from June 1, 2010, to the date of enactment of the extension.
If you or anyone you know is interested in purchasing real estate, please:
Contact Clara at 856-264-1058
FREE: Find home values in your neighborhood...Click on Home Values link
Monday, June 21, 2010
Senate Passes Home Buyer Tax Credit Extension
Recently the United States Senate approved an amendment to HR 4213, the American Jobs and Closing Tax Loopholes Act of 2010, which would extend the homebuyer tax credit closing date deadline from June 30, 2010 to September 30 2010.
The amendment applies only to purchasers who have satisfied the April 30 binding contract rule for the $8,000 & $6500 tax credits and creates no new eligibility. Before the Senate bill can be sent to the president for final approval, it must be reconciled with the House legislation. (Source NAR/NJAR)
The amendment applies only to purchasers who have satisfied the April 30 binding contract rule for the $8,000 & $6500 tax credits and creates no new eligibility. Before the Senate bill can be sent to the president for final approval, it must be reconciled with the House legislation. (Source NAR/NJAR)
Thinking about Selling, Leasing, or Buying?
For all your real estate needs
Call CLARA at 856-264-1058
Monday, April 26, 2010
New Short Sale Rules
New rules are in place for sellers in regards to short sales. A short sale is when the bank accepts less than what is owed on the property for sale. Below are the basic guidelines:
1. In order for the bank to accept a short sale Sellers must NOT qualify for a loan modification under the Home Affordable Mortgage Program or be unable to afford the modification.
2. The bank will set an acceptable value of the home upfront, based on an appraisal or broker’s price opinion.
3. Lenders must approve or deny a purchase offer within 10 days of it being submitted.
4. Once the bank approves a home for short sale, sellers may stop paying all related mortgage payments, and unpaid mortgage debt will be forgiven. These mortgage payments will not be shown as late on credit reports.
5. At closing, sellers are entitled to as much as $1,500 from the government to cover relocation expenses.
1. In order for the bank to accept a short sale Sellers must NOT qualify for a loan modification under the Home Affordable Mortgage Program or be unable to afford the modification.
2. The bank will set an acceptable value of the home upfront, based on an appraisal or broker’s price opinion.
3. Lenders must approve or deny a purchase offer within 10 days of it being submitted.
4. Once the bank approves a home for short sale, sellers may stop paying all related mortgage payments, and unpaid mortgage debt will be forgiven. These mortgage payments will not be shown as late on credit reports.
5. At closing, sellers are entitled to as much as $1,500 from the government to cover relocation expenses.
Thinking of Selling or Buying?
CALL CLARA for all your real estate needs
856-264-1058
Wednesday, March 24, 2010
Record Open House Attendance
My listing at 60 Acadia Drive had over 25 families come through, with an average of 3 to 8 people per family, it was like I was having a party! What fun! In addition to invited guests, interested neighbors, and Sunday sign shoppers, I also had realtors bring their clients.
The result? Multiple offers and an accepted offer in 4 days after the Open House well over the asking price.
The spring season is underway and buyers are out there looking for properties to beat the April 30th tax credit deadline for both buyers ($8,000) and sellers ($6,500). For the weekend of March 20-21, over 18000 people visited Weichert Open Houses, the best Open House attendance this year! Also, the average number of attendees at a specific Open House increased as well.
Of my 6 listings I had on the market at the begining of the year, 5 of them are under contract and scheduled to close. Sellers are happy and you can be too!
The result? Multiple offers and an accepted offer in 4 days after the Open House well over the asking price.
The spring season is underway and buyers are out there looking for properties to beat the April 30th tax credit deadline for both buyers ($8,000) and sellers ($6,500). For the weekend of March 20-21, over 18000 people visited Weichert Open Houses, the best Open House attendance this year! Also, the average number of attendees at a specific Open House increased as well.
Of my 6 listings I had on the market at the begining of the year, 5 of them are under contract and scheduled to close. Sellers are happy and you can be too!
THINKING ABOUT SELLING! BUYERS ARE OUT THERE!
Call Clara: 856-264-1058
Tuesday, March 9, 2010
Grants available for Oil Tank removal, installation and leak remediation
Do you have or know someone with an underground oil tank that is currently inactive because they switched to another fuel source or went to an aboveground tank? Grants are available to offset the cost of this expense. Before putting your home on the market for sale, be sure to take the steps in advance to have the tank removed.
New Jersey has a grant to assist with the cost of this process. In addition, some companies, like Merdian Environmental Services, will do the work, provide a "contractor non-leaking certification form", forward the certification form along with all the NJEDA required forms to the homeowner to fill out along with a copy of paid invoices and receipts, as needed. The homeowner can then sign the forms and submit them with copies of their last three years tax returns and a $250 non refundable application fee to the NJEDA. Reimbursement usually takes 4-6 weeks.
NJEDA will reimburse up to $1,500 for the removal of a non-leaking underground oil tank and up to $3,500 for the removal of a non-leaking underground oil tank and the installation of a new aboveground oil tank.
If the oil tank has leaked, there is another grant from the NJDEP UST Fund for any clean up costs up to $500,000 that a home owner would be responsible for, and in the process have the oil tank removal and installation costs reimbursed to the home owner.
This program is available to residents of the State of New Jersey, with a taxable income of less than $250,000 per year and a net worth of less than $500,000, not including the value of their primary residence and retirement savings (401k/IRA/pension). This program is also available to non-profit orgnizations. Other restrictions and eligibility requirements apply.
Please feel free to visit the NJEDA at njeda.com or newtanksnj.org for more information and to download and review the required forms.
Homeowners should verify that they are qualified by using the"Grant Worksheet" to determine if they pass the Financial hardship test. In order to qualify for a 100% grant reimbursement the applicant's annual expenses need to be at leas 51% of their annual taxable income. Some companies like Meridian Environmental, supply these forms with their oil tank removal proposal. Meridian Environmental can be contacted at 732-281-1900 or 609 654-0660 for more information. Let Meridian Environmental know that Clara Lyons referred you.
Click on the Home Values link top right on this page to get FREE information about the value of homes and the services in neighborhoods that interest you.
New Jersey has a grant to assist with the cost of this process. In addition, some companies, like Merdian Environmental Services, will do the work, provide a "contractor non-leaking certification form", forward the certification form along with all the NJEDA required forms to the homeowner to fill out along with a copy of paid invoices and receipts, as needed. The homeowner can then sign the forms and submit them with copies of their last three years tax returns and a $250 non refundable application fee to the NJEDA. Reimbursement usually takes 4-6 weeks.
NJEDA will reimburse up to $1,500 for the removal of a non-leaking underground oil tank and up to $3,500 for the removal of a non-leaking underground oil tank and the installation of a new aboveground oil tank.
If the oil tank has leaked, there is another grant from the NJDEP UST Fund for any clean up costs up to $500,000 that a home owner would be responsible for, and in the process have the oil tank removal and installation costs reimbursed to the home owner.
This program is available to residents of the State of New Jersey, with a taxable income of less than $250,000 per year and a net worth of less than $500,000, not including the value of their primary residence and retirement savings (401k/IRA/pension). This program is also available to non-profit orgnizations. Other restrictions and eligibility requirements apply.
Please feel free to visit the NJEDA at njeda.com or newtanksnj.org for more information and to download and review the required forms.
Homeowners should verify that they are qualified by using the"Grant Worksheet" to determine if they pass the Financial hardship test. In order to qualify for a 100% grant reimbursement the applicant's annual expenses need to be at leas 51% of their annual taxable income. Some companies like Meridian Environmental, supply these forms with their oil tank removal proposal. Meridian Environmental can be contacted at 732-281-1900 or 609 654-0660 for more information. Let Meridian Environmental know that Clara Lyons referred you.
Thinking of BUYING or SELLING?
Click on the Home Values link top right on this page to get FREE information about the value of homes and the services in neighborhoods that interest you.
Contact Clara at 856-1058
Monday, March 8, 2010
Relationships! Relationships! Relationships!
My Sunday Open House at 219 Mimosa Dr in Cherry Hill was typical in most respects.
Like usual I put out at least 8 directional signs, balloons, & flags. Like usual I had a sign in sheet for guests. Like usual I turned on all the lights, opened all the blinds and turned on the fans...YES, we are past the snow and it was a gorgeous SUNNY SUNDAY. And like usual a neighbor or two stopped by to see what was going on with the home and I had some very lovely families stop by as well.
So what was different! This Sunday I had the opportunity to just talk with one of the families. They really loved the home...They are working with an agent and the property is not my personal listing...so I was really present to the joy of just engaging in conversation.
Unlike some realtors, I am in this business for more than just the sale. I really enjoy sharing my experience and knowledge of the market with others. Also each person I meet provides something very special that adds to me and I hope I give something back.
Yes we talked in great deal about real estate and I offered them everything I would offer to my VIP clients. I gave them the new tax credit benefits for buyers and sellers. I told them about other properties that might also interest them. We talked about the challenges of selling the home they own. They shared with me about their family and what they really needed and wanted in a home.
I shared with them about this website and how they could get home values and neighborhood information on this website just by clicking the HOME VALUES link.
They were my last guests of the day and they were in the house between clients and until the Open House ended, well over an hour. It was a pleasure, just being in relationship.
To top it off...and this is happening to me often, I was stopped twice while I was picking up my directional signs by neighbors. One wanted to know about the house..and in the middle of the street we chatted for awhile about the real estate market. The second person shared information with me about neighbors and we talked about the possibility of listing a property.
Both people stopped me because I acknowledged them, greeted them and smiled. Not because I expected anything..but because I enjoy being in relationship. Life is more than the work, the tasks that make up the work...It's about people...and the lives we touch each and every day.
Like usual I put out at least 8 directional signs, balloons, & flags. Like usual I had a sign in sheet for guests. Like usual I turned on all the lights, opened all the blinds and turned on the fans...YES, we are past the snow and it was a gorgeous SUNNY SUNDAY. And like usual a neighbor or two stopped by to see what was going on with the home and I had some very lovely families stop by as well.
So what was different! This Sunday I had the opportunity to just talk with one of the families. They really loved the home...They are working with an agent and the property is not my personal listing...so I was really present to the joy of just engaging in conversation.
Unlike some realtors, I am in this business for more than just the sale. I really enjoy sharing my experience and knowledge of the market with others. Also each person I meet provides something very special that adds to me and I hope I give something back.
Yes we talked in great deal about real estate and I offered them everything I would offer to my VIP clients. I gave them the new tax credit benefits for buyers and sellers. I told them about other properties that might also interest them. We talked about the challenges of selling the home they own. They shared with me about their family and what they really needed and wanted in a home.
I shared with them about this website and how they could get home values and neighborhood information on this website just by clicking the HOME VALUES link.
They were my last guests of the day and they were in the house between clients and until the Open House ended, well over an hour. It was a pleasure, just being in relationship.
To top it off...and this is happening to me often, I was stopped twice while I was picking up my directional signs by neighbors. One wanted to know about the house..and in the middle of the street we chatted for awhile about the real estate market. The second person shared information with me about neighbors and we talked about the possibility of listing a property.
Both people stopped me because I acknowledged them, greeted them and smiled. Not because I expected anything..but because I enjoy being in relationship. Life is more than the work, the tasks that make up the work...It's about people...and the lives we touch each and every day.
Thinking about BUYING or SELLING? Call Me: 856-264-1058
Monday, February 15, 2010
Insuring a Vacant Home
Take steps to properly insure any vacant property you own.
- A home is considered vacant when it is unoccupied and all personal property has been removed.
- Listing clients who move out of their home before it is sold need to know how their insurance coverage is impacted.
- Most homeowner insurance policies retrict coverage when a home is vacant for more than 30days, after which point claims will likely be denied should a loss occur.
- Sellers should consider special coverage such as the Vacant Home Program offered by Weichert Insurance Agency.
Call 1-866AGENT for more information.
Friday, January 1, 2010
Show Me the Money - Step One to Home Ownership
Its 2010! A New Year and a New OPPORTUNITY to determine what kind of real estate investment works best for you! You resolved to make a new start to purchase property and become part of the 70% of American households that are homeowners.
Homeownership definitely has its advantages. It is an opportunity to build wealth through home equity and appreciation; it provides tax benefits and it makes you the final decision maker and “ruler of the castle” for the property you live in. This STEPS TO HOME OWNERSHIP series will provide some information that will help you determine if now is the time for you to purchase a home or stay a renter.
Step One: Finances – Show me the Money!
To purchase a home you need cash or a mortgage loan. Cash can be sitting in your bank account, in a line of credit, or in a financial security that can be liquidated or borrowed against. As a potential buyer you can also borrow money from financial institutions or private investors to fund the purchase of the property. Given all the recent defaults in the mortgage market, lenders are now being more responsible to potential buyers by sticking to more consistent standards in qualifying potential home buyers and disclosing costs associated with getting a loan to purchase a home.
The three key things considered by the lender in the loan approval process are: 1) the credit score; 2) the monthly debt-to-income ratio; and 3) cash on hand or access to cash to pay costs associated with the purchase of the home. *
1. Credit Score - Many people do not have a clue of their true credit score. To purchase a home, or even to rent, a credit report is required. The lender will ask you to provide your social security number so they can pull your credit report as the beginning step in your home purchase process. If you are not seriously looking for a home and just want to know your score, you can request a free credit report once a year with no impact to your score. Unlike consumer credit inquiries, you can have your credit pulled by a financial institution multiple times in a 30 day period while you are shopping for a home loan and it will not affect your credit score.
Most lenders are looking for a credit score of at least 620 or above. If your score is below 620, it is an opportunity to see what items on your credit report require your attention to bring your score up. There are numerous free and paid credit counseling agencies that can assist in this area.
For most lenders, the credit score is the initial criteria used to determine if you will be able to move forward in the loan approval process to finance the purchase of a home.
2. Debt-to-income ratio – After the lender has pulled your credit and determined they can begin the loan process for you, they will require a loan application and various documents to verify your income. This may include 3 months of pay stubs, your last 2 years W-4s, and a list of your current credit obligations. This information is reviewed and one key area the lender is looking at is your debt-to-income ratio. Simply put it represents your monthly obligations as a percentage of your monthly income. There are many ways to approach this…but one way is taking the things that make up your mortgage payment, PITI= principal & interest, tax & insurance and dividing that by your income. If PITI/income is 45% or less, this leaves a little over half your monthly income to cover other expenses.
As a new home owner, you really don’t want to pay your monthly income for a mortgage and after other expenses, like food, water, gas/oil, electricity, phone, transportation (car note & gas), cable, internet, and entertainment….you have ZERO funds left over for things like travel, entertainment and yes emergencies. You may love the idea of owning your home, but if this percentage is too high, under current guidelines, the lender will not be able to lend you the money if your ratios are too tight.
On the flip side, the lender may approve you for a loan based on basic recurring expenses and income, but there may be other expenses like entertainment & travel which are not readily reflected. Don’t leave it all to the lender. Preparing a budget is a good step to make sure you have considered all the expenses that are important to your lifestyle when deciding the affordability factor for your new home.
3. Cash Needed to Purchase - A minimum of $2000 cash on hand is a good estimate of upfront funds to get started. These funds cover your deposit, given at the time of contract signing (please note that the deposit can range from $1000 to 10% of the purchase price); the cost of your home inspection; and the cost of your lender appraisal of the home. Let’s call these upfront costs.
Add to that your down payment. For the three most common loans expect a minimum of 0% of the purchase price for a VA loan; 3.5% for an FHA loan; and from 5%-20% for a conventional loan.
And lastly you will need money for closing costs which may include one year’s worth of home insurance, at least 3 months of taxes, title insurance, and lender fees. This can add up to 3% to 6% of the cost of the home. Your lender should provide you with a “Good Faith Estimate” of the costs to purchase a home. This estimate should be updated once you select a specific property and you know the exact taxes, insurance and title information related to the property you selected.
Finances play a key role in the purchase of a new property. The lender is the professional who will review your financial information and talk with you in detail about your purchase options, including the type of loan and the interest rate for the loan. The lender will be able to answer all the questions about your loan. The lender will also provide a preapproval letter and ultimately a loan commitment letter to your realtor. This letter lets your realtor know that you are ready to begin looking for homes in the price range determined by you and the lender.
For more information: I am your one stop shop to exploring your financing options!
Clara Lyons
I turn real estate dreams into reality – One home at a time!
856-264-1058
ClaraSellsHomes@gmail.com
*The figures quoted in this blog are estimates. The info presented is a snapshot of some factors used by lenders and is not intended to represent all the factors taken into consideration in the loan approval/credit rating process. There are a range of loan options and programs. Each financial institution reserves the right to establish financial guidelines and credit worthiness.
Homeownership definitely has its advantages. It is an opportunity to build wealth through home equity and appreciation; it provides tax benefits and it makes you the final decision maker and “ruler of the castle” for the property you live in. This STEPS TO HOME OWNERSHIP series will provide some information that will help you determine if now is the time for you to purchase a home or stay a renter.
Step One: Finances – Show me the Money!
To purchase a home you need cash or a mortgage loan. Cash can be sitting in your bank account, in a line of credit, or in a financial security that can be liquidated or borrowed against. As a potential buyer you can also borrow money from financial institutions or private investors to fund the purchase of the property. Given all the recent defaults in the mortgage market, lenders are now being more responsible to potential buyers by sticking to more consistent standards in qualifying potential home buyers and disclosing costs associated with getting a loan to purchase a home.
The three key things considered by the lender in the loan approval process are: 1) the credit score; 2) the monthly debt-to-income ratio; and 3) cash on hand or access to cash to pay costs associated with the purchase of the home. *
1. Credit Score - Many people do not have a clue of their true credit score. To purchase a home, or even to rent, a credit report is required. The lender will ask you to provide your social security number so they can pull your credit report as the beginning step in your home purchase process. If you are not seriously looking for a home and just want to know your score, you can request a free credit report once a year with no impact to your score. Unlike consumer credit inquiries, you can have your credit pulled by a financial institution multiple times in a 30 day period while you are shopping for a home loan and it will not affect your credit score.
Most lenders are looking for a credit score of at least 620 or above. If your score is below 620, it is an opportunity to see what items on your credit report require your attention to bring your score up. There are numerous free and paid credit counseling agencies that can assist in this area.
For most lenders, the credit score is the initial criteria used to determine if you will be able to move forward in the loan approval process to finance the purchase of a home.
2. Debt-to-income ratio – After the lender has pulled your credit and determined they can begin the loan process for you, they will require a loan application and various documents to verify your income. This may include 3 months of pay stubs, your last 2 years W-4s, and a list of your current credit obligations. This information is reviewed and one key area the lender is looking at is your debt-to-income ratio. Simply put it represents your monthly obligations as a percentage of your monthly income. There are many ways to approach this…but one way is taking the things that make up your mortgage payment, PITI= principal & interest, tax & insurance and dividing that by your income. If PITI/income is 45% or less, this leaves a little over half your monthly income to cover other expenses.
As a new home owner, you really don’t want to pay your monthly income for a mortgage and after other expenses, like food, water, gas/oil, electricity, phone, transportation (car note & gas), cable, internet, and entertainment….you have ZERO funds left over for things like travel, entertainment and yes emergencies. You may love the idea of owning your home, but if this percentage is too high, under current guidelines, the lender will not be able to lend you the money if your ratios are too tight.
On the flip side, the lender may approve you for a loan based on basic recurring expenses and income, but there may be other expenses like entertainment & travel which are not readily reflected. Don’t leave it all to the lender. Preparing a budget is a good step to make sure you have considered all the expenses that are important to your lifestyle when deciding the affordability factor for your new home.
3. Cash Needed to Purchase - A minimum of $2000 cash on hand is a good estimate of upfront funds to get started. These funds cover your deposit, given at the time of contract signing (please note that the deposit can range from $1000 to 10% of the purchase price); the cost of your home inspection; and the cost of your lender appraisal of the home. Let’s call these upfront costs.
Add to that your down payment. For the three most common loans expect a minimum of 0% of the purchase price for a VA loan; 3.5% for an FHA loan; and from 5%-20% for a conventional loan.
And lastly you will need money for closing costs which may include one year’s worth of home insurance, at least 3 months of taxes, title insurance, and lender fees. This can add up to 3% to 6% of the cost of the home. Your lender should provide you with a “Good Faith Estimate” of the costs to purchase a home. This estimate should be updated once you select a specific property and you know the exact taxes, insurance and title information related to the property you selected.
Finances play a key role in the purchase of a new property. The lender is the professional who will review your financial information and talk with you in detail about your purchase options, including the type of loan and the interest rate for the loan. The lender will be able to answer all the questions about your loan. The lender will also provide a preapproval letter and ultimately a loan commitment letter to your realtor. This letter lets your realtor know that you are ready to begin looking for homes in the price range determined by you and the lender.
For more information: I am your one stop shop to exploring your financing options!
Clara Lyons
I turn real estate dreams into reality – One home at a time!
856-264-1058
ClaraSellsHomes@gmail.com
*The figures quoted in this blog are estimates. The info presented is a snapshot of some factors used by lenders and is not intended to represent all the factors taken into consideration in the loan approval/credit rating process. There are a range of loan options and programs. Each financial institution reserves the right to establish financial guidelines and credit worthiness.
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