Homeless Families in New Jersey

I am working with a family with children where both parents lost their job and I am selling thier home. Now that we are near settlement, having exhausted their savings, they have no place to go. This is the hard part of my job. I have been researching options and am open to suggestions! 
In my research I found that between 2008 and 2010, the number of homeless families in New Jersey increased by 40.1% (from 1,580 to 2,215) and the number of homeless children increased by 13.9% (from 3,601 to 4,100). With shelters operating at capacity statewide, the number of persons in families and single households staying in motels with county vouchers has risen 15.6% to 1,457. In addition, there were 1,596 children living doubled up with family or friends, in permanent supportive housing, or in a non-voucher subsidized motel in 2010. Common factors contributing to homelessness in 2010 were unemployment (31.3%), eviction (25.7%), and the high cost of housing (22.3%). Since 2008, there has been an increase in the number of homeless persons accessing mainstream benefits, with the overall percent of homeless individuals receiving benefits remaining constant. Food stamps provided aid to 3,844 or 45.4% of surveyed individuals in 2010.

There has got to be a better way.

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4 Things to Consider Before Converting Basement

Finished space can add resale value, but only if done right. If you're fortunate enough to have a basement in your home, you may have the potential for a substantial amount of additional living space right below your feet. But if you're thinking of converting that cold and unappealing area to a warm and cozy new space, there are several things you'll want to take into consideration first.

1. Is it safe?

One of the very first things you want to look at with any basement conversion is safety, and that can take a lot of different forms. Is there convenient and safe access from inside the house in the form of a stairway that meets current building codes, or is there an exterior entrance that works for what you want to use the space for? Is there a sufficient amount of headroom? Would structural supports for the upper floors be in the way, and if so, can they be moved or altered to allow for the necessary space? If you'll be creating a sleeping room, is there safe and legal egress?

2. Is it dry?

Now we get down to what's a big issue in a lot of basements, and that's moisture. Newer homes are often designed with the proper drainage systems and exterior waterproofing to keep the basement areas dry and ready for building, but many older homes had basements -- "cellars" -- that were designed for cool storage and were never really intended to be occupied. If you have a basement with ongoing or seasonal moisture issues, you need to consult with an experienced excavation contractor before you get started on a conversion project. See what it would take to have a drain installed and have the exterior walls properly waterproofed, and perhaps have the exterior grade adjusted to change the flow of water runoff around the exterior of the home. In some cases, you may need to change gutters and downspouts to channel roof water to a different location, or possibly install a sump pump to handle seasonal water issues. No matter what, be sure that your basement moisture issues are handled before you start closing things up.

3. What will the space be used for?

Once you've determined that you have a space that's safe and dry, decide what you want to use the converted basement area for. That will make a big difference in your design, and also in your construction costs. For example, it may be a big game room, in which case you need little more than wall, floor and ceiling finishes. On the other hand, you may be looking at a bedroom or two, perhaps for guests, with a full bathroom and maybe even small kitchen facilities. In that case, you've got plumbing issues to consider, as well as a lot more electrical wiring, and also ventilation. Some basement spaces are even used as rentals in order to generate a little additional income. If that's your intention, you'll need to take into consideration what the access will be for your tenants, so as to provide privacy for them and for yourselves. You'll need to talk with your plumber and electrician about how the electrical and plumbing services will be split and metered to the spaces. And, of course, you'll need to confirm with your local jurisdictions that having renters is a legal use of the space.

4. Finishing the space

Options abound for the actual finishing of the space itself. One of the first considerations is insulating it, so that it's warm and energy efficient, as well as quieter. The preferred insulation method used by many of today's builders and remodelers is extruded polystyrene insulation. Extruded polystyrene is a high-density, water-resistant, closed-cell foam available in sheets, typically blue or pink, as opposed to the expanded polystyrene -- commonly known as beadboard -- which is white and is comprised of small round foam pellets fused together. Expanded polystyrene has a lower R-value, and is not approved for moisture contact applications. You can apply 1 1/2-inch polystyrene (R-value of 7.5) or 2-inch (R-10) directly to the walls with adhesive. The sheets are 2 feet by 8 feet, and the long edges are notched to accept furring strips every 2 feet. You can then install drywall or other wall finish materials directly to the furring or, depending on the level of insulation you want to achieve, you can add a second layer of rigid foam to the furring, then add your wall finish. Conduit can be attached to the walls first for electrical wiring, and the polystyrene is easy to route out as needed over the conduit. Obstacles such as posts or other structural supports can be framed around using two-by-fours. Horizontal duct runs and large horizontal plumbing runs can be framed into overhead soffits. If there's a sufficient amount of headroom, a suspended ceiling allows for the installation of decorative, sound-deadening tiles that are easily removable to allow access to overhead utilities.

Basement conversions can be a very rewarding use of existing space, and they can add a lot of resale value to your home -- but only if they're done right. If you have any questions about moisture control, insulation, structural issues, zoning or anything else, be sure to get them answered by the pros before you get started!

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Fannie and Freddie Set Timeline Requirements for Short Sales

By Carrie Bay DSnews

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.
Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).
Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.
The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.

If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.
According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All decisions must be made within 60 days.
In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response.
The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.
Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”
GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.
“I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,” commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. “There is no question that this will help short sales and the market as a whole.”
Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

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FHA will keep funding flips - Waiver for 90-day resales extended through 2012

Waiver for 90-day resales extended through 2012
By Inman News, Wednesday, December 28, 2011.

Inman News®


For the second year in a row, the Federal Housing Administration is extending a temporary waiver of its "anti-flipping" rule, meaning homebuyers relying on FHA-insured financing will continue to be able to buy homes that have changed hands in the last 90 days.

The waiver is a boon for investors seeking to rehab and flip properties, because it expands the pool of eligible borrowers to include those relying on FHA-backed loans, popular with first-time homebuyers and others who lack the cash to make large down payments.

In extending the waiver through 2012, FHA said all transactions must continue to be arms-length. In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will apply only if the lender can document the justification for the increase in value, FHA said.

FHA instituted the anti-flipping rule in 2003 to protect its mutual mortgage insurance program from losses on homes that were merely flipped, rather than rehabbed. Homes repossessed by Fannie Mae, Freddie Mac, and state- and federally chartered financial institutions were exempt from the rule.

In February 2010, the Obama administration waived the waiting period for resales -- including homes purchased and rehabbed by private investors -- in the hopes of stabilizing home prices and revitalizing communities hit by foreclosures.

It often takes less than 90 days to acquire, rehabilitate and sell properties, the Department of Housing and Urban Development said at the time. Some sellers of rehabbed properties had been reluctant to enter into contracts with FHA buyers because of the cost of holding a property for 90 days, HUD said

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