Help for Military Being Forced to Sell Their Homes

"I am being transferred," said my client, a navy captain . I hated to break the news to him that his home value in San Diego had fallen $100,000 since he had bought it in 2005. I discussed his options which included a short sale. However, since he owned another home in Florida this might not have been the best option for him. The banks could potentially attach a lien to the small amount of equity that he had in that property. I encouraged him to talk to a Military lawyer and to talk to his commander. Fortunately, he was able to delay his transfer. However, not all military personnel are so fortunate.

It didn't seem fair. The military serving our country and risking their lives, and as a result of being transferred, at no fault of their own, they could lose everything and face financial ruin. Finally, help is on the way.

Recently, as the result of the American Recovery and Reinvestment Act, The Department of Defense(DOD) Homeowners Assistance Program (HAP) was expanded to include military members affected by the housing market, who face financial hardships as a result of being permanently reassigned during the mortgage crisis.

Below are the eligibility requirements:

1. Permanent reassignment requiring move of more than 50 miles.

2. Reassignment ordered between 1 February 2006 and 30 September 2012 (or earlier date designated by SECDEF (Secretary of Defense).

3. Property purchased (or contract to purchase signed) before 1 July 2006.

4. Property sold by owner between 1 July 2006 and 30 September 2012, or earlier date designated by SECDEF.

5. Property was the primary residence of the owner.

6. Owner has not previously received these benefit payments.The process is owned by the Army Corps of Engineers, however each base should have a focal point (MPF or housing office) for this program to provide local guidance/oversight and to validate eligibility based on PCS (permanent change of station) orders.

According to the Homeowners' Assistance Program--Department of Defense website http://hap.usace.army.mil/homepage.html the funding policy process is still being worked out, and according to some sources may be available as soon as May 15, 2009.

The instructions and application can be downloaded from the website above. The link provides all the information about the program and specifically on PCS eligibility when you click on "Service Members Homeowners on PCS".

While the application processing will commence as soon as possible after the DOD guidance is posted, they encouraged potential service members to submit an application. The application is found under "How to Apply". They will process the applications based on the implementation guidance.

Having two sons who are veterans and one that is still in the reserves, it is good to know our country is offering the military help during a difficult time.

Virginia Hall, ABR®, GRI® , e-Pro
Coldwell Banker Residential Brokerage
http://www.virginiahall.com/

(619)258-8585

Uncle Sam Giving Money Away to First-Time Homebuyers

What a great opportunity for the first time homebuyer! If you have been considering buying a home, but have been waiting for the opportune time...well it has arrived. As part of the American Recovery and Reinvestment Act of 2009, the Federal government has enacted the Homebuyer Tax Credit providing an $8,000 tax credit to first-time home buyers (or buyers who have not owned a private residence in the past three years) who purchase a home that they will live in on or after January 1, 2009 and on or before November 30, 2009. Unlike the previous 2008 tax credit, this credit does not require repayment and will be used to reduce the purchaser’s income taxes. If any of the credit remains unused, it will be refunded.

The National Association of REALTORS recently came out with the details:

How does it works?
• The Tax credit has been raised from $7,500 to $8,000 or 10% of purchase price (whichever is less).
• The credit does not require repayment.
• First time home buyers or buyers who have not owned a home in the last 3 years.
• To qualify, a single person must make less than $75,000 a year in income.
• Joint ownership must make less than $150,000 a year in income to qualify.
• Qualified buyers must purchase home on or after January 1, 2009 and no later than November 30, 2009.
• The property must be the primary residence.
• Purchaser must remain in home for 3 years or the credit will be recaptured at the sale of home.

Are there restrictions for the home I want to purchase?
• The primary residence can be a condo, single family detached, co-op, townhouse or something similar
• The home must be located in the United States.
• Vacation homes and rental properties are not eligible.
• For new construction, the “purchase date” is the date you occupy the home. So the move in date must be before December 1, 2009.

Who is not eligible for the credit?
• If your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
• You may not buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• Vacation homes and rental properties are not eligible
• If you stop using your home as your main home.
• If you sell your home before the end of three years.
• If you are a nonresident alien you are not eligible

Recapture-3 Year Residency
• If the home is sold prior to three years of ownership, the tax credit must be repaid at closing.
• This provision is designed to prevent flipping homes in order to get the credit.

Other Provisions
• Purchasers who utilize state/local revenue bond financing can now use the credit.
• Purchasers who bought before January 1, 2009 and received the previous $7,500 tax credit are still subject to the terms of that repayable credit.

When Can I Claim the Credit?
• It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

So don't let this great opportunity pass you by...Buy!

Virginia Hall

8 Tips to Maintain Beautiful Wood Flooring

Houses with wood flooring sell faster and for more. Wood flooring continues to be the popular choice among many homeowners. Hardwood...Pergo...Bamboo...There are a multitude of options. Before investing into a wood flooring, homeowners need to investigate which one will work best with their families and lifestyle. You will want to visit the National Wood Flooring Association website http://www.woodfloors.org/ for more information on styles and types of flooring.

While there is a variety of Wood floors styles and types, with the advances in stains and finishes, most require little more than sweeping with a soft-bristle broom and an occasional cleaning with a reputable wood floor cleaner.

According to the National Wood Flooring Association, the following tips will help protect and maintain your hardwood floors:

1. Use a cleaner that is specially made for wood floors. Avoid using sheet vinyl and tile floor care products. Self-polishing acrylic waxes can cause the wood to become slippery and appear dull quickly.
2. Use throw rugs both inside and outside of doorways to prevent scratches and keep dirt and grit from being tracked onto the floor.
3. When cleaning, do not use a wet mop. Standing water can dull the finish, damage the wood and leave a discoloring residue.
4. Wipe up spills immediately with a slightly dampened towel.
5. Avoid walking on wood floors with cleats, high heels and sport shoes, which can dent the floors.
6. When moving heavy furniture, pick it up instead of sliding it. Place guides under furniture legs to prevent scuffing and scratching.
7. For wood floors in the kitchen, place an area rug in front of the kitchen sink.
8. Use a humidifier throughout the winter months to keep wood movement and shrinkage to a minimum.

Using these tips, will help to maintain the luster and beauty of your wood flooring.

For more tips on preparing your home to sell, see my blog Price Wars and Beauty Contests--8 Simple Tips to Win!

--Virginia Hall

Buy Today with Recession Proof Plans

Afraid to buy a home during this Economic Recession? Afraid of losing your job? Then how will you make your house payments? Even in good times and even if you are renting, this is a concern. But not quite as much as now when the news is filled with layoffs and people you know in San Diego are losing their jobs.

Normally, I would say you need to have some reserves and then you just have to find another job. However, in these uncertain times it may take longer than usual. Well the California Association of Realtors® has the come up with a safety net that you can rely on to make that leap of faith into home ownership with a secure feeling.

On April 2, James Lipsak, the 2009 C.A.R. President, announced, "Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009."

"To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)
First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®."

"The Mortgage Protection Program is a proactive approach by C.A.R. to address consumers’ concerns about the real estate market and their ability to make their mortgage payments should they loose their jobs. I encourage you to take full advantage of this new program by sharing information about the C.A.R.H.A.F. Mortgage Protection Program with your clients. There is no cost to either you or your clients to participate."

So don't let the uncertain times keep you from making your move. Know that this plan is there if you should need it.

--Virginia Hall

Negotiating--Powerful Representation To Get What You Need

"I want what I want, and when I want it!" This is an unrealistic attitude to have when buying and selling homes. Buyers and Sellers need to remain open to winning some battles and losing others.

Negotiating is defined as “the art of influencing or persuading others.” It is a essential skill for a Realtor® who is representing Buyers and Sellers. However, it is important to point out that negotiating is not about taking unfair advantage of someone and should never involve dishonest or unethical behavior. In persuading or influencing others, our goal is to create genuine win-win outcomes by helping people see where they do, in fact, share common ground and can benefit from a give-and-take arrangement that advances their mutual interests.

A suave Realtor®, who understands your needs and is skilled at negotiating, acts as a buffer between you and the other party. They know where you stand and look out for your needs. While there is give, there is also take. They understand how to negotiate and work to get the majority of your needs met. By the end of the transaction, both parties should feel somewhat satisfied not angry and bitter.

Although, quite often the market has a bearing on the outcome of the negotiations. For example, if you are a buyer competing with multiple offers you may have to pay a bit more than you wanted to for the property and accept more imperfections than you hoped for. On the other hand, if you are a seller and haven't had an offer in 2 months, you may take less for the property than you expected. A Realtor® who understands your position will educate you on what is reasonable and unreasonable in the negotiations. However, they won't be afraid to ask for the unreasonable if it is in your best interest.

While, the buyer or seller may be adamant about their stand and they seem to be winning all the battles. If the market is leaning in their favor, you could stand firm and lose the transaction all together or reluctantly compromise one more time.
Sometimes, understanding that by getting over these bumps ultimately leads to your goal, the sale. Don't judge the method, but judge the results.

Price Wars and Beauty Contests--8 Simple Tips to Win!

Buying a home is an emotional decision. Buyers are making multiple offers on homes that may need new plumbing or furnaces; but the floors are swept, the bathrooms shine, the fragrance of muffins linger in the kitchen, the beds are wrinkle free made with simple but stylish bed spreads, light flows through clean windows, and the counters are clutter free with a few designer touches.

While lower prices and good photos on the internet are getting people into the home, the Sellers who stage their home with a few simple moves will appeal to all the Buyer's senses and will get multiple offers. Buyers driven by their desire to have that particular home are getting into bidding wars. The sellers are ending up with thousands of dollars above where they started.

8 Simple Tips:

1. Clean up the yard. Weed and cut the grass. At the last minute, add a few plants that are in bloom for color.
2. Remove Clutter. Removing clutter makes the rooms feel bigger.
3. Deep cleaning is a must. Floorings must be cleaned. Kitchens and bathrooms must sparkle. Kitchen counters tops must be cleared. Trashcans must be emptied. Remove litter boxes to the garage or clean everyday to reduce any odors.
4. Simple Stylish Decorating. Open up the room by reducing excessive furniture. Freshen up the home with neutral colored paint. Remove all personal items and photos. Set a beautiful inviting table. Play soft music for atmosphere. More decorating ideas can be found on Better Homes and Gardens (www.bhg.com).
5. Let the Sun Shine in. Open window blinds and drapes or turn on lights for a bright cheery home.
6. Simple Repairs Can Make a Huge Difference. Loose knobs, dripping faucets, burned out light bulbs, sticking doors and windows, warped cabinet drawers and other minor flaws detract from the home value. Have them fixed.
7. Safety. Keep stairways clear. Remove throw rugs on slippery surfaces. Tack down any loose carpets or protruding boards. Dogs must be kenneled or restrained.
8. Clear Out Closets. Neat, well-organized closets make them look bigger and show that space is ample.

With the advice of an experienced Realtor®, who can give you more staging tips, will make all the difference in how easily and quickly you sell your home--to win the beauty contest!

--Virginia Hall

Go Green, Save Green

You don’t have to build from scratch to have a greener home. These quick and easy home fixes will shrink your consumption and your monthly bills.

• Rate it. Look for Energy Star-rated products. This government program helps people make energy-efficient choices, which can lead to savings of up to a third of energy costs.


• Switch the lights. Compact fluorescent light bulbs use up to 75 percent less energy than traditional bulbs. Replace them in highly used fixtures such as porch lights, bathroom vanities and office lamps.


• Go with the flow. Use low-flow showerheads and consider installing low-flow toilets to reduce water usage and save on water-heating costs.


• Plug in, turn off. Use a power strip for your home office or home entertainment center. Even in standby mode, consumer electronics — which account for 15 percent of household electricity — use a little juice, so turn the power strip off when you can.


• Cool it. Turn the water temperature for your washing machine or dishwasher down to 120º F to cut water-heating energy consumption.


• Seal it. Search for hidden air leaks in your attic, basement or crawl space, and seal them with caulk, spray foam or weather stripping. Home sealing can be an inexpensive way to cut energy consumption by up to 10 percent.
  

Sources: www.energystar.gov, http://www.eere.energy.gov/; http://www.crs.com/magazine/your_home_newsletter.shtml

If Houses Could Scream!

"What happened here?" my buyer gasped.

I was in shock. What had happened since making an offer on the home?

It had been 6 weeks since he had made the offer on this home, that was being sold as a short sale. The sellers had to sell the home as the result of a divorce, and owed more on the home than it would be sold for. The home was older and needed some cleaning, a kitchen and bathroom update, but over all the 3 bedroom house had potential.

As we walked into the house, the seller passed us leaving for work muttering something about trouble with his child who had done some damage.

However, after examining the home, it was evident that the seller had done the dastardly deed. He had removed the dishwasher, the oven, the front bathroom newer bathtub doors. In addition, two bedroom doors, some kitchen cabinet doors were missing. As we walked down the hall I noticed the matching painted wood paneling on the walls was missing and now there was exposed damaged drywall with a layer of black tar down the middle. The original hardwood floors had a long scrapes and gouges where the oven had been drug through the living room to the backyard.

While we had a contract that the seller had violated, what is the point of suing someone who is in the process of losing everything. I could have renegotiated the price down for my Buyer, but where would the angry seller stop before the end of escrow. With the damage he did in 24 hours since the offer had been accepted, would the house still be standing in the next 45 days? Unfortunately, the Seller's actions, spoke loud and clear, "That if I couldn't have it, no one would.

Since we were expecting the home inspector, any minute, my buyer had to make a decision. While I hated to see him lose the house that he had hunted months for and waited patiently for the bank to approve the offer, but there was nothing else he could do. I knew he couldn't afford to rebuild the nice little home he had bought. Not to mention, would he be able to get lending on it. While we had a contract, you can't sue someone who has nothing to lose. Much to his despair, the Buyer was forced to cancel his contract.

While I have seen foreclosed homes damaged, toilets and sinks missing, entire kitchens barren, this was the first short sale where someone had sabotaged his chances of selling a home. While I knew this seller was in the middle of a divorce and angry, I tried to make sense of the destruction.

While some may see the destruction as an expression of anger towards the banks, a silent revolution, I feel we are seeing an epidemic of angry home owners, grieving over the loss of their homes--the center of their family's universe.

While buyers have an opportunity to pick up homes at a reduced price right now, there are a lot of homes out there that have been damaged by Angry Sellers or have deferred maintenance. A big problem with these homes for buyers, is lenders often won't lend on them. So right now, patience is the name of the Buyer Game and being the first to find the diamond.

Any Ghosts in the Closets? The Neighbors Will Talk

”Do you think I will get top dollar for my home,” my seller paused before adding, “ even after what happened here?”
From the tone of her voice, my instinct told me that this wasn’t good. “What happened here?”

My seller shared the story of how after they had moved into their beautiful home that the neighborhood children began to tease their children “that they lived in a haunted house”. There was much more to a last minute disclosure of a “death” in the house than had been told. Unfortunately, they had not met the neighbors before the close of escrow to share the tale of the house. While they bought the house at a reduced price, moved in and lived there happily for many years without any problems, knowing the history may have affected their decision to buy the house and should have been disclosed more thoroughly since it will live on with the house.

I have had numerous encounters with neighbors before helping buyers purchase a home and while some neighbors may have a vendetta again the seller, most often the information is helpful.

For example, while looking at a piece of land with a buyer, the neighbor stepped over to share that she wondered why anyone would buy a piece of land you couldn’t build on, because it was in a flood plain. While this wouldn’t necessarily stop me, if I loved the land, just because a neighbor says something doesn’t make it fact. However, I would definitely heed the warning and check it out with the government agency that issues building permits.

In this day of foreclosures, neighbors can be a great source of information since the banks are exempt from certain disclosures, since they have no knowledge of the house. Recently, I approached a neighbor with a potential buyer for the house next door. With a friendly introduction, we asked the neighbor about the sewer that was noted “available” in the listing information. The kind neighbor shared with us about the home being on septic, as well as, the questionable addition had been there since the house was built. While again, I would still recommend checking out the building plans at the government agency, the neighbor’s information gave my buyers the information they needed to feel comfortable enough to proceed with an offer.

So the moral of the story is, it is a good idea to meet your new neighbors before you make an offer or as soon after, while doing your inspections…to find out if there are any ghosts in the closets.

--Virginia Hall

Grab That Golden Housing Ring!

The NEWS is out! While the Economic Stimulus Package waits for President Obama to sign the bill, the Senate has passed the Economic Stimulus Bill, which included some good news for Home Buyers.

The President of the National Association of Realtors announced this morning, "So here's what we have achieved: 1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10."

While most people have ambivalent feelings about the costly Economic Stimulus Bill, it is almost here and you or someone you know might as well take advantage of it. There are certain qualifications first time homebuyers need to meet, but what an opportunity for new as well as move up buyers. Grasp that golden housing ring and run with it!

--Virginia Hall

Unleashing the Economic Stimulus Package on the Housing Market

Last week, Buyers asked me excited about the $15,000 Home Buyers' tax credit. Wouldn't that give the housing market a shot in the arm?

However in regards to the Economic Stimulus Package and the Home Buyer Tax Credit, the New York Times reported vaguely, "In driving down the total cost — from $838 billion for the Senate stimulus bill and $820 billion for the House-passed measure — lawmakers also reduced the Senate’s proposed tax incentives for buyers of homes and cars, which hold big public appeal." So it appears it will be a bit before we find out the rest of the story, the exact amount of the credit.

So while we wait for the details on how much Buyers will get, the government has already previously passed a nice incentive for qualified first time home buyers--at least $7500 in tax credits if you buy before July 1st. So while Interest rates are down, what are you waiting for? If you plan to stay in San Diego, now is the time. Time to get a hold of a qualified Realtor®, such as myself, to start a search.

Homes in good condition are already getting multiple offers in San Diego County. Once they unleash the full details of the Economic Stimulus Bill and expose the exact amount of the credit, the smart people who have been sitting on their money waiting for the housing market to bottom out will act, investing their money and getting back a tax credit, to boot. Don't get left behind. Why not join them?

--Virginia Hall

4 Basic Tips Guaranteed to Sell Your Home Faster

What do I need to do to get my home ready to sell? I am asked this all the time when owners are preparing to sell their homes. Selling a home is not an easy task. You may need to start preparing months in advance. Visit a model home in a new development, or even other homes that are selling to see what works and what doesn't. Notice how the model homes makes you feel. The sparse, non-personal decoration generally appeals to everyone and is easy on the eye. Keep in mind, you are preparing the house to sell not to live in.

1. Remodeling. While remodeling definitely adds value and helps a home sell quicker, exactly how much money do you get back in return? According to Realtor Magazine, while the Kitchen and Bathrooms are the rooms most recommended to remodel, you can expect 94.1% of the money you spent on an average kitchen remodel and 87.5% on a bathroom remodel back in the sales price. So if you plan to do any remodeling it is important that you use a budget, and stick to it, in order for the remodel make sense. This is not the time to use the top of the line accents or features unless you plan to enjoy the remodel for a year or two before selling. Be practical.

2. Paint. At the same time, some very low cost affordable things can be done to help sell your home more quickly. Touch up the paint or if it beyond this, then paint the home a nice neutral color. "Realtor®" Beige is good. Right now there are multiple offers going out on homes that may be dated, but are clean and well maintained.

3. Clean…Clean…Clean… The most important cost effective task to make your home more sellable is to deep clean and de-clutter the home. While one person's clean is another person's dirty, is important to ask for feedback from friends and your Realtor®. An objective by-stander can see when your love-worn chair has to go. If you refuse to put it out of its misery, then at least put it into storage. Look at your furniture, see if you can remove any of it and then rearrange to open up the room. Nothing yells out "small room" quicker than too much furniture. Pack up all those personal photos and other knick knacks. Oil scent diffusers or other types of light air freshers add a nice touch, filling the room with a safe, pleasant fragrance.

4. Landscaping. Another important item is the yard. Curb appeal is what will often get someone in the door. Even though we have heard "don't judge a book by its cover" a million times, it is our nature. Landscaping accounts for 15%of the price. A ragged, weed ridden yard with junk thrown about warns the buyer of what’s to come inside. Clean up the yard, keep the weeds mowed, edge the lawn, trim those over-grown bushes, and plant a few bright color flowers in the entrance to lure them in. If your grass is brown, sprinkle some ammonia sulfate and water well for a quick green. Also the yard should be free of old cars, engine blocks, empty plant pots, and trash.

With a glut of ghastly foreclosures on the market, these simple, yet vital steps, are guaranteed to help you sell your house quickly and at a higher price.

--Virginia Hall