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July 2010
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BUY SELL RENT INVEST
INVEST IN YOUR HOME
Buy or Move up
"I wish I had purchased a home in 2010" or "I wish I had moved up when homes were priced better and rates were low".
We’ll be hearing that phrase in the near future. We’ve heard people say that they wish they had purchased real estate at some point in the past when prices were low or interest rates were low. The best of both scenarios exists today.
Prices are low and interest rates are low.
In fact, interest rates remain near historical lows. Indices that measure the affordability of homes show that over 70% of Americans have incomes that allow them to purchase the average price home where they live. Affordability is also near historical highs.
Unique Market
The market conditions are ideal for owners of low and moderately priced homes to capitalize on our unique market. Economist Jeff Thredgold, in an interview with Rod Decker on KUTV 2 noted that we have already seen increases in value moderately priced homes but that the prices remain low for higher priced homes. Here is a chance to “sell high and buy low” in what may be the single largest investment we make.
INVEST IN INCOME PRODUCING REAL ESTATE
Once you own one home, you may want to invest in other real estate. Invest in real estate as a way to diversify your portfolio, but also to build wealth. With interest rates at all time lows and the foreclosure rate increasing, some great deals are available. By buying and owning rental property, you will use rental income to help subsidize the mortgage payment. You can rest easier knowing that someone else is paying more of the interest and principal each month than you. Rental property or investment real estate also provides tax benefits of depreciation and deductions of valid expenses.
Hire the real estate, property management and titling pros. For instance, if a property manager can find you a buyer three months sooner than you can on your own, paying that commission may be far better than paying two more mortgage payments.
When investing in property besides your primary residence and building your real estate empire (regardless of the size), the most important rule is to just practice basic business principles. Your goal is to sell something for more than it cost you to buy it and fix it up. When renting, you are relying on rental income to subsidize a fair amount of your mortgage, but not the entire thing. Greed and dreams of quick dollars will likely lead you to trouble, but making sane, business-focused decisions should allow you to extend your real estate holdings outside of your home.
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Basic A/C Maintenance Tips to Beat Heat This Summer
When our air conditioners start working overtime to keep the inside cool, that strain can wreak havoc on the many moving parts inside the A/C system. Take the time to do some preventive maintenance. This can be the difference between enjoying cool comfort and sweating a costly service call.
Check and change air filters
While most air filters have an average life of three months, it's important that you check them monthly during long periods of hot weather. With your A/C system working harder and longer due to the extended heat, filters fill with particles faster. Take the filter(s) out and hold it to the light. If the dust on the filter is so think that you can't see much light shining through the filter, it's time for new filters. A clean air filter, unobstructed by the dirt and other debris, will save you money on energy costs and prolong the life of your air conditioner.
Keep outdoor unit clean and clear
For safety, always turn the thermostat and outdoor unit's breaker off before doing any work around that outdoor unit. Once everything's off, go ahead and check the unit for anything blocking the unit's sides or top. Remove any plant growth, grass clippings, or debris caught in the coil walls. Cottonwood is a big clogging culprit this time of year.
The coil can be cleaned using a soft-bristle brush to gently sweep the fins. Always brush in line with the fins, and be gentle because the fins can bend easily. Because the fan pulls air through these fins, you can expect to find dust clinging to the fins. Removing this dust and other debris will reduce resistance and increase efficiency.
Prune or remove any shrubs or other growth that is touching or close to the unit. Do not use a weed eater or other powered cutting tool that might damage the fins. Garden shears or some other type of hand clippers are recommended.
Check drain for clogs
Another important thing to check for is a clogged condensate drain. This is the drain that comes from the cooling coil drain opening on the furnace and runs to the floor drain. With the A/C running, check where the line drains into the floor drain to see if water is draining. If no water is present, you most likely have a clog. Now check at and around where the drain hooks into the drain pan on the furnace. If there is water visible on the furnace and/or pooling at its base, you definitely have a clog. Turn off the A/C right away to avoid water damaging any furnace components, and have a licensed mechanical contractor inspect and unclog the drain.
Miller & Company Real Estate
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Housing Myths Busted!
Two e-mail chains are spreading misinformation about pending legislation, NAR says. One claims that the energy bill that’s working its way through Congress would require home sellers to obtain an energy audit or make energy retrofits before they can sell their home. In reality, the bill includes a provision that requires new construction to be energy-labeled but prohibits states from requiring new ratings when the house is resold.
The second e-mail states that the health care bill contains a 4 percent transfer tax on home sales. The truth is that the bill imposes a 3.8 percent Medicare tax for some high-income households that have "net investment income."
The tax, which goes into effect in 2013, applies only to households with adjusted gross income of more than $250,000 ($200,000 for individuals). Also, since the capital gains exclusion rule is still in effect, the tax would be charged only on home-sale proceeds that exceed the exclusion amount of $500,000 ($250,000 for individuals). That’s an amount that touches few households.
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June 2010
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$100 Down Payment for Home Purchase
Conventional loans require up to 20% for the down payment. Even FHA loans require 3.5% down payment. HUD has homes you can purchase with a $100 down payment.
What are HUD Homes?
A HUD home is a home that HUD owns as a result of foreclosing on an FHA loan.
These HUD homes are not the HUD homes of the past. FHA increased the loan limits to a high of $729,750 for Single Family homes and up to $1,403,400 for Four Family homes. As a result of higher loan limits, the inventory of homes includes more expensive properties.
The largest hurdle buyer’s face in purchasing a home is coming up with the down payment. The down payment for these HUD homes is $100. Everyone should be able to come up with $100 for a down payment.
There are some requirements you must meet in order to take advantage of the $100 down payment program. When someone with an FHA insured loan can’t make the payments, the lender forecloses on the home. FHA, as the insurer of the loan, pays the lender what is owed and then the United States Dept. of Housing and Urban Development (HUD) becomes the owner of the home
Who is Eligible to Buy HUD Homes?
Almost anyone can buy a HUD home. Any individual who can qualify for an FHA mortgage or who can pay cash may buy a HUD home.
Buyers must have a pre-qualification letter from a lender or proof of cash funds. HUD does not provide financing for the purchase of HUD homes. It is up to the buyer to procure financing through a bank or mortgage lender.
Priority is given to purchasers who are owner occupants. Owner-occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home for two years
Requirements:
1. HUD Foreclosed homes only.
2. Must use FHA financing.
3. Purchaser must be Owner - Occupant. You must sign a form at closing stating that you are going to live in the property and not use it as an investment such as a rental property.
Find out what HUD homes are available. See HUD Homes in Utah or contact an agent to help you through the process
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Rent to Sell Your Home
The Real Estate market is struggling.
There are more people who need to sell their homes.
There is less mortgage money available and qualifying for loans is more difficult.
Most people who want to buy your home can’t.
What is Rent to Sell?
The main premise of Rent to Sell is to expose your home to the largest number of potential buyers, present or future by:
· The traditional method of hiring a real estate agent to sell your home to present buyers
· Employing a Property Manager to rent your home to a tenant who wants to buy it in the future.
· Market your home to an investor as a ready made investment with a tenant in place.
Contact Miller & Company Property management for a free consultation.
Miller & Company Property Management
Miller & Company Real Estate
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NAR Commends Senators for Offering Homebuyer Tax Credit Extension, Urges Senate and House to Quickly Pass Legislation
Washington, June 11, 2010
The National Association of Realtors® today expressed thanks on behalf of America’s homebuyers to three Senators for introducing a measure to extend the present home-buyer tax credit closing deadline to Sept. 30. They are Senate Majority Leader Harry Reid, D-Nev., and Sens. Johnny Isakson, R-Ga., and Chris Dodd, D-Conn.
“As the leading advocate for homeownership and housing issues, NAR commends these Senators for their attentiveness and sensitivity to thousands of qualified home purchasers, who through no fault of their own, are not able to meet the closing deadline of June 30 for the homebuyer tax credit. Now we urge the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these homebuyers,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. Read more
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May 2010
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Tax Credit Ended; Now What?
The availability for the income tax credit expired April 30, 2010 for essentially all homebuyers (the credit is still available for members if the armed forces). The effect of the tax credit is difficult to measure and there is some question about the overall cost versus benefit, The credit has caused a surge in sales and has been widely lauded for helping to stabilize prices. The Treasury Department real estate industry have termed the program a success, helping 1.8 million people buy homes. Many tax policy experts say it has been singularly cost-ineffective: most of the $12.6 billion in credits through end of February was collected by people who would have bought homes anyway or who in some cases were not even eligible.
90 percent of the consumers believe that the tax credits have helped both first-time home buyers and the U.S. housing market overall, according to a recent survey.
Whatever the results, the program is over and we must look to the future and continue the housing recovery.
Loss of Tax Credit May Have Little or No Effect
Among consumers shopping for homes, 65 percent said the end of the tax credits will have little or no effect on their interest in purchasing a home, according to the survey, which was conducted by Prudential Real Estate and Relocation Services, part of Prudential Financial (NYSE:PRU – News).
Consumers remain unsure about the direction of the housing market, but are optimistic about real estate values, with 46 percent expecting prices in their area to increase over the next year. Just 12 percent expect prices to decline, the survey found. Over the next five years, 79 percent expect prices to increase, and 20 percent expect prices to increase substantially.
Mortgage Rates are More Important
Rising mortgage interest rates and unemployment were cited as the most important factors affecting consumers’ decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve.
The expiration of the tax credits ranked the lowest on their list of concerns.
Mortgage Rates at Lowest Level of the Year
Mortgage rates continue to be at or near historic lows, making now a very good time to purchase property.
Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.93 percent with an average 0.7 point for the week ending May 13, 2010, down from last week when it averaged 5.00 percent. Last year at this time, the 30-year FRM averaged 4.86 percent. The 30-year FRM has not been lower since the week ending December 10, 2009, when it averaged 4.81 percent.
Mortgage rates will increase; it is inevitable. Graphs of historical interest rates demonstrate how unusual the current low rates are. Rates cannot go lower.
The Cost of Interest Rate Increases
Increased interest rates, even by 1% will dramatically affect the homebuyer’s ability to purchase. For example, for a home priced at $225,000 the principal and interest for a 30 year fixed loan at 5% will result in a monthly payment of $1,207.85.
The same principal and interest payment ($1,207.85) for the same term, at 6% interest reduces the loan value from $225,000 to $201, 459. That is a difference of $23,541 or 8.95% decrease in purchase power.
The seller of the $225,000 property would need to reduce the price $23,541 to compensate for the increase in monthly payment due to the interest rate increase from 5% to 6%.
It is not prudent for buyer or seller to delay purchase or sale of a property in the face of increasing interest rates.
Now is the best time to buy.
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Preserve Your Home and Community Value
KUTV-CBS featured a story on foreclosed homes that are becoming targets of vandalism. Investors and others buying foreclosed properties should keep a close eye on their properties, according to Ryan Kirkham, past president of the Salt Lake Board of REALTORS. Kirkham said that if damage to a foreclosed home happens before a buyer takes ownership, then it's on the bank to make repairs.
What You Can Do
When you notice a property being neglected, such as obvious damage or grass not being mowed or watered, locate the owners of the property so they can handle the situation and reduce their financial loss. Preserving the value of vacant properties will also stabilize the value of yours and other homes in the community.Call the real estate agent who is listing the property if the home is for sale. To find out who owns the home, you can contact the homeowners association, or your local housing and inspectors department.
Take Action Early
When foreclosed homes are left unattended, it affects you and your community. Take action early to stop problems from getting worse. Report any suspicious activity or code violations to the proper authorities.
Miller & Company Real Estate
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15 Percent Increase in Home Sales
SALT LAKE CITY (ABC 4 News) - People are starting to buy homes again. According to the Salt Lake Board of Realtors home sales have increased 15 percent from January 1 through March 31 of 2010.
There were 1,716 homes sold in Salt Lake County. And, nearly every zip code in the county saw increases in home sales.
Breaking it down further, Sandy (84070) home sales were up 48.5% Home sales in Midvale were up 72.7%. On Salt Lake's west side (84104) they were up 122%. And in Taylorsville/ Kearns (84123) were up 54.2%.
The biggest price deline by zip code in Salt Lake County was in the east area of downtown (84102). Prices were down by 22.9%
In Holladay, home prices increased 25.8% to a median price of $327,000 in the first quarter.
Home prices also rose 6% in West Valley City (84119) to a median price of $159,000.
And in the Canyon Rim/ Olympus Cove area of Salt Lake (84109) prices stopped falling.
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April 2010
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Tips for Selling Your Home in a Down Market
By Glenn Curtis
In a declining real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home's attractiveness besides lowering the asking price. If you're looking to sell your home in a cooling real estate market, read on for some tips on how to generate interest and get the best price possible.
Differentiate From the Neighbors
In order to attract attention and to make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or an updated roof. This can help improve the home's aesthetics, while potentially adding value to the home. Any improvements should be practical and use colors and designs that would appeal to the widest audience.
Clean the Clutter
It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple of hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.
Sweeten the Deal
Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they're getting one.
Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover a failure by appliances such as air conditioners and refrigerators. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.
Finally, it's important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.
Improve Curb Appeal
Sellers often overlook the importance of their home's curb appeal. The first thing a buyer sees is a home's external appearance and the way it fits into the surrounding neighborhood. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?
Read more
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Home Sales Surge 31% Over Past Six Months
Home sales in Salt Lake County are surging. Since October 2009, home sales have shown double-digit gains on a year-over year basis.
In fact, if you compare home sales from October 2009 through March 2010 with the same six-month period a year earlier, home/condo sales have climbed an astonishing 31 percent (5,230 sales vs. 3,990 sales)!
This year is indeed a turnaround from the past three years. The sales increases we've seen are in line with what economist James Wood predicted in a report commissioned by the Salt Lake Board earlier this year. Wood predicted that as many as 10,000 single-family homes could be sold this year in Salt Lake County, a nearly 10 percent increase compared to sales in 2009.
Much of the sales increases are due to low mortgage interest rates, more affordable home prices and the federal government's home buyer tax credit.
These conditions continue to make this year the right time to buy a home. It's a message all potential home buyers need to hear.
Miller & Company Real Estate
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Spring Maintenance
Tips for Your Home
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Replace your furnace filter
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Clean the kitchen exhaust hood and air filter
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Check your electrical system
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Always have a multi-purpose fire extinguisher accessible.
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Make sure the light bulbs in all your fixtures are the correct wattage
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Review your fire escape plan with your family
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Consider installing a lightning protection system on your home
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Protect all your electrical appliances from power surges and lightning
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Have a professional air conditioning contractor inspect and maintain yoursystem as recommended by themanufacturer
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Check for damage to your roof
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Run through a severe-weather drill with your family
- More details
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March 2010
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DON'T WANT TO PAY TAXES ?
GET $6,500 T0 $8,000 TAX CREDIT
Qualifying Home Buyers purchasing in 2010 have the option to:
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Claim the credit on their 2009 return, even if the purchase is completed after December 1, 2009;
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File an amended return for 2009 if their purchase is completed after April 15, 2010 or;
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Claim the credit on their 2010 tax returns
In order to get the benefit of the tax credit buyers must:
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Purchase before April 30 2010 or ;
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Have a binding written contract by April 30 and CLOSE by July 1, 2010.
HOUSES ARE AFFORDABLE
The National Association of Home Builders and Wells Fargo Bank determine a home affordable housing index based on:
In the Salt Lake City Metropolitan Statistical Area, the typical family (making the median income of $67,800) could afford to buy more than 75 percent of the all the areas homes sold over the past 3 months. That is up from 71percent during the third quarter of 2009 and up considerably from 58 percent last year.
In Provo-Orem the index is 76 percent and in Ogden-Clearfield 89 percent of the homes sold in the last quarter were affordable.
NOW IS THE TIME TO BUY BUT TIME IS RUNNING OUT
The housing affordability index doesn't factor in the Tax Credit so affordability is at an all time high. Talk to your Realtor to purchase before the April 30 deadline.
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HOMEBUYER TAX CREDIT
SUMMARY
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FEATURE
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Nov 7 – Apr 30, 2010
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First-time Buyer
Amount of Credit
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$8,000 ($4,000 married
filing separate)
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First-time buyer
Definition of Eligibility
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May not have had an interest in a principal residence for 3 years prior to the purchase
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Current Homeowner-
Amount of Credit
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$6,500 ($3,250 married filing separate
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Effective Date-
Current Owner
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November 7, 2009
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Current Homeowner –
Definition for Eligibility
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Must have used the home sold or being sold as a principal residence consecutively for 5 of the last 8 years
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Termination of Credit
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Purchases after
April 30, 2010
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Binding Contract Rule
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So long as a written binding contract to purchase is in effect an April 30. 2010, the purchaser will have until July 1, 2010 to close
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Income Limits
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$125,000 – single
$225,000 – married
Additional $20,000
Phase out
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Limitation on Cost of
Purchased Home
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$800.00
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Purchase by a
Dependant
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Ineligible
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Anti-fraud Rule
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Purchaser must attach documentation of purchase to tax returns
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Miller & Company Real Estate
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Manage Stress at Work
1. Give up your coffee. It increases the production of adrenaline and simultaneously it prevents the production of adenosine, a natural sedative for your brain.
2. Get Organized. Even a very basic organizational habit saves you many hours of practical work in the week .
3. Observe yourself. Recognize and address simple symptoms of stress, such as tense muscles and quick and dispersed thinking.
4. Stretch in front of your PC. For a quick relief, cross your fingers behind your neck and push your shoulders backwards so that they come closer. Then leave your head to fall forward and your chin to touch your sternum. Bring your elbows in front and join them. Push your hands down for a few seconds and then relax. Repeat the same exercise 6-8 times every time you feel tension.
5. Use multi-vitamins. Researchers found that those who took daily multi-vitamins rich in vitamin C and B reduced the stress experienced by 21%.
6. Take 5-minute breaks for a good laugh. Laughter reduces blood stress hormones such as adrenaline, the cortisone, the epinephrine and dopamine, while increasing the levels of hormones that promote health.
7. Do not forget your successes. Take a note of your successes at work by creating a folder with information to which you can look at any time.
8. Do not become an "email slave". Try to check your e-mail at specified intervals and not all the time.
9. Free you mind. After an intense concentration let your mind run free. Allow yourself to think about things to look forward to in the next week, month or year.
10. Do not eat lunch while working. Take a break for lunch. Do not eat your lunch while you work.
11. Get some fresh air. Take a few minutes to get out of the air-conditioned workspace and breathe some fresh air.
12. Sleep is vital for your work performance. Lack of sleep reduces your energy and has an impact on your performance at work. You should get at least 7 hours of sleep every night.
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Feb. 2010
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Short Sale Options
One in five homes is “under water”; a situation where the value of the home is less than the amount owed for the mortgage loan. The best option is to continue making payments and emerge in a better financial situation when home values are restored. Many borrowers find themselves in dire situations due to circumstances beyond their control.
Short sale is a better option for borrowers than allowing a home to go into foreclosure. A short sale is typically also better for the lender or investor. The securitization of loans and the reluctance of junior lien holders to accept terms of the short sale have made the process difficult, lengthy and uncertain. There is a new program, the Home Affordable Foreclosure Alternatives (HAFA) designed to help borrowers avoid foreclosure. Borrowers must apply for a loan modification before being considered for the HAFA program.
HAMP
Lenders and investors have been slow to respond to requests for loan modifications under the Home Affordable Modification Program (HAMP). The Home Affordable Modification Program is designed to help borrowers who are unable to make mortgage payments due to a number of different circumstances.
· Payments have increased
· Income has decreased
· Hardship has increased your expenses (Medical bill)
Under HAMP, borrowers request modification of the terms of their mortgage contract. The program allows servicers of loans owned or securitized by Fannie Mae or Freddie Mac to reduce monthly payments to 31% of the borrowers gross monthly income for as long as 60 months.
HAFA
Home Affordable Foreclosure Alternatives (HAFA), going into effect April 5, 2010, is designed to provide incentives for lenders and homeowners to avoid foreclosure. All HAFA loans must first be considered for HAMP modification, and data collected in that process can be used for assessing a possible short sale or deed-in-lieu transaction.
HAFA provides advantages to the seller by providing protection during the short sale and more structured, non subjective conditions for the short sale or DIL .
· The servicer must advise the borrower, in writing, about the availability of a short sale or a deed-in-lieu and give them 14 days to consider the option.
· Servicers are expected to perform a financial analysis to determine whether a short sale or DIL is in the best interest of the investor or mortgage insurer.
· The servicer has to determine the minimum net proceeds that will be accepted by the investor. A DIL Transaction must include a full release of debt and waiver of all claims against the borrower. The borrower has to agree to vacate the property by a certain date, leaving it in clean condition and with marketable title.
· Foreclosure can’t be completed while assessing borrower’s eligibility.
HAFA also provides monetary incentives to borrowers, lenders and investors;
· Second lien holders and get up to $3,000 from the proceeds.
· Borrower can get up to $1,500 to cover relocation expenses.
· Servicers are paid $1,000 to cover admin fees.
· Investors will be paid a maximum of $1,000 for allowing up to $3,000 to be paid
to second-lien holders
The program is designed to address the needs of borrowers, servicers and lenders. Talk to your Realtor to see how this program may help you.
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Renters have protection from foreclosure
Studies show that 40 percent of households that have lost their homes due to foreclosure are renters. A federal law enacted this year offers renters more protection from eviction if their landlord loses the property through foreclosure. The fundamental purpose of the Protecting Tenants from Foreclosure Act is to ensure that tenants facing eviction from a foreclosed property have adequate time to find alternative housing. The law establishes a minimum time period that the tenant can remain in a foreclosed property before eviction," a Federal Reserve memorandum states.
Renters will get 90 days' notice
The new law allows tenants who have a lease to remain in their home until the end of the lease period unless a new owner purchases the home at a foreclosure sale and intends to occupy it as a personal residence. In that case, the renter can be evicted with 90 days notice even if a longer-term lease is in force.
If the renter signed the lease before the owner obtained the foreclosed loan, the lease will still "survive" the foreclosure.
Those who don't have a lease also are entitled to 90 days notice prior to eviction under the new law.
The law became effective May 20, 2009 and is scheduled to end Dec. 31, 2012.
Only 'bona fide' renters are protected
The law protects only a bona fide lease or tenancy, which is defined as a situation that meets three criteria:
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The renter may not be the former owner of the home, or the former owner's spouse, child or parent.
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The terms of the rental must be at arm's length between the landlord and renter.
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The rent cannot be substantially less than the fair-market rent, unless the rent is subject to a government reduction or subsidy.
The bottom line is that landlords and renters have new rights and responsibilities in foreclosure situations. While renters may face challenges in their attempts to exercise those rights, knowledge and action can prevail.
Leasing through a professional Property Management company will provide protection through bona fide lease agreements.
Miller & Company Real Estate
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Changing Mortgage Industry
There is a significant change taking place in residential lending market share.
The nations top five residential funders - Wells Fargo, Chase, Bank of America, Countrywide (half year volume before being taken over by BoA) and Citigroup in the first quarter of 2009 the top five funders had a market share of 58.3%. The top ten had a market share of 70.76 %.
The top five have gone from a market share of 29.01% in 2000 to a record share of 58.3% in 2009, based on surveys from the National Mortgage News. Looking at the market share numbers for lenders one might assume that within ten years there may be as few as ten mortgage originators and servicers in the U.S.
What's wrong with the big owning the industry? Are we creating monopolies and businesses that are Too Big To Fail?
One fact is apparent; small residential funders and the independent mortgage broker hold a dwindling share of the market place.
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Jan. 2010
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Forecaster: Utah population spike over next 20 years will create demand for housing
By John KeaheyThe Salt Lake Tribune
Chris Nelson is way out there when he lays out the future -- say 20 years out there. And what the director of the University of Utah's Metropolitan Research Center forecasts for the state's housing market during the next two decades gave a Salt Lake City ballroom full of hundreds of Realtors a lot of hope Monday. Though that is countered by some uncertainty in the year ahead, his bottom line was this: By 2030, the state will be the fastest growing in the nation, pulling in another 1.5 million residents on top of the 2.7 million already here, and 700,000 new jobs will be created. "We are -- you are -- big time," he told the audience. That means more houses need to be built, along with more commercial square footage. And he state, particularly the Wasatch Front, is behind in what is needed. "This pent-up demand, combined with growth, needs to be dealt with," he told the Realtors during their annual Housing Forecast breakfast at Little America Hotel. While Nelson had the podium and was describing a world still two decades away, those in the audience also were perusing a handout from James Wood, director of the University of Utah's Bureau of Economic and Business Research. Wood dealt with more immediate issues. He predicted that Salt Lake County can expect a 3 percent growth in home sales during 2010, or 9,100 units. But there are some big caveats tied to lending. "Could this slight up-tick signal that 2008 was the bottom of the downturn and the rebound is under way?" he asked in the report. Then he answered his own question. If so, "the contraction was short-lived, only two years but vicious in its magnitude." As far as housing prices are concerned, they will continue to fall another 3 percent to 5 percent this year, bringing the overall price decline in Salt Lake County during the past two years to 15 percent. But there is a bright spot. Prices should be "stable to slightly improving" in 2011. For Realtor Lavar Campbell, the prognostications were all good news. "You don't usually see a lot of that optimism elsewhere," he said. "It's nice to see that things are looking up." Realtor Colleen Howcroft said the forecasts "gave us a lot of hope. It looks like we're going to build back up this year, and 2011 will be better." The big question real estate agent Ben Goodwin had after the session was, "Are banks going to be willing to lend," given tighter restrictions now in place? That question also occurred to the U.'s Nelson. "The demand will be there. Will the banks be there to help?" he said in an interview following his talk. Nelson's numbers are staggering. If you push his time frame another 10 years, to 2040, he predicts the entire United States will need to add 287 billion square feet of residential and commercial real estate between now and then. Dropping back to a 2030 scenario, he estimates that along the Wasatch Range -- from Logan to Provo -- 450,000 units will need to be built, a 50 percent increase over what is available today. And for commercial space, 1.1 billion square feet will have to be added. That's 120 percent more than the 750 million square feet that exist now. He asked his breakfast audience, where the additional square feet will go in a region that already is filling up. It will have to come in multi-family housing and involve a new way of looking at creating neighborhoods. Not only that, he pointed to demographics that show that Utah's non-Anglo population in Ogden, Salt Lake City and Provo will grow by 600,000 by 2030. Because a lower percentage of this demographic is comprised of home buyers, he said, "more than half of all new houses built will have to be in rental mode.
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Rent or Buy?
When making the decision either to rent or buy a place to live, there are two broad categories of factors that must be considered. The first and most obvious category represents the financial aspects of your decision. The second category is a set of personal and emotional factors, which are more intangible but play an important role in the decision to rent or buy. Here, we look at the financial factors, including the initial and ongoing costs as well as the long-term pros and cons of owning your home.
Examining Your Finances
The first step in the decision-making process is to determine whether or not you can afford to purchase a home. Issues to consider include your ability to make a down payment (generally between 5% and 20% of the home’s purchase price) and pay closing costs (which may be an additional 5%). These costs are likely to exceed substantially the initial payment and security deposit that would be required if you were renting instead of buying. Of course, having enough money to cover the initial purchase of a new home is only half of the battle.
Before moving into your new home, you’ll need to put some thought into how much it’s going to cost you to stay there after you take up residence. Many financial experts suggest that your monthly payment not exceed 28% of your gross monthly income and that your total monthly debt payments not exceed 36% of your gross monthly income. If you go beyond these limits, you may run into trouble because, in addition to paying the mortgage each month, you have to factor in home maintenance. From carpet to window coverings, new appliances to a new roof, everything costs money and nothing lasts forever. Renting may be a little easier on the pocketbook because it provides a fixed-dollar cost for monthly expenditures, which are paid simply with the rent. Besides perhaps increasing from year to year, the rent remains steady. And, if maintenance issues arise, the landlord pays for the repairs. Instead of spending your money on a new roof, you can invest it or spend it as you like.
If you’ve done the math and can afford to make the initial purchase and service the ongoing debt, the next factor you have to decide is whether this purchase benefits you financially. A rent-controlled apartment in New York City, or a place in a suburban location outside of a major city, quite possibly charges a month’s rent that is significantly less than a monthly mortgage payment for properties within the city. Of course, even if the monthly cost of renting is less than the cost of buying, there are long-term financial considerations that must be taken into account.
Long-Term Cost/Benefit Analysis Proponents of buying often cite the ability to build equity, the tax breaks and the investment value of a home as solid reasons to buy instead of rent. While these arguments have merit, there are downsides to all of them. This chart outlines the positive and negative long-term realities of the equity, tax breaks and investment value associated with buying a home.
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Topic
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Pros
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Cons
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Equity
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Some of the money that you give to pay a mortgage goes directly toward building equity in your home. You will never again see any of the rent money that you pay. Home equity can serve as collateral for a loan, enabling you to convert the equity into cash.
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Equity takes time to build, and payments made during the first few years of a mortgage go primarily toward interest on the loan. Should you move after living in a home for only a few years, you may have little or no equity in the property. And after the costs of selling the home, you could end up losing money.
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Tax Breaks
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Unlike money spent on rent, the mortgage interest and property taxes you pay are both deductible on your federal income-tax return. If you sell your primary residence at a profit, much of your gain is likely to be exempt from federal taxes. If you take out a home-equity loan some or all of the interest on the loan may be deductible on your federal income tax return.
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First, the tax breaks on interest and property taxes apply only when the amount of your itemized deductions is greater than the standard deduction amount. So you and your spouse have a standard deduction of $9,700 and itemized deductions of $8,000. You are better off taking the standard deduction because it’s greater than the itemized amount. But you therefore receive no tax break on the mortgage interest you paid. Even when itemization provides a greater tax break than the standard deduction, you are allowed to deduct only a portion of your interest payments. For example, if you are in the 33% tax bracket, you get a $0.33 tax deduction for every $1.00 that you pay in interest on your mortgage. While some tax break is better than none, you need to ask yourself if it really makes sense to spend $1 in order to get a $0.33 tax break. The benefit of the tax break does not exceed the benefit of paying for the home in cash (if possible) and foregoing the tax break. Every dollar spent in interest adds to the amount above the purchase price of your home that you will need to make just to break even when you sell it. Owning a home means having to pay real-estate taxes every year. So even after your mortgage is paid off, you’ll still have to keep making payments to someone to keep your home.
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Investment
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Real estate in the form of your primary residence is likely the single largest asset in your portfolio. Over the long term, price appreciation can be significant. Many homeowners downsize their primary residence when they retire they sell at profit, purchase a less expensive home and use the profits to supplement their income.
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While history shows it is likely that your home will appreciate over time, there are no guarantees. There are always areas of the country where homes have lost value, and owners are unable to sell them at a price equal to or greater than the purchase price.
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Do the Calculations
A variety of online calculators are available to help you evaluate the financial aspects of the rent versus buy decision, but keep in mind that you need to estimate a range of variables that includes the number of years you will stay in the home. (Check out this Monthly Mortgage Payments calculator here)
And to estimate the investment profit the home will provide for you, you must assume the yearly rate of appreciation on the home’s value. The results provided by a calculator and the investment evaluations you make are only as good as the assumptions used to calculate them, and don’t forget to consider the cost of ongoing maintenance. After you have carefully considered the financial issues, it’s time to explore the non-financial issues.
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New Good Faith Estimate
Starting Jan. 1, mortgage lenders nationwide were required to begin issuing new "good faith estimates" to applicants covering loan fees and settlement charges. Under the regulations issued by the Department of Housing and Urban Development, the estimates that lenders provide upfront must be accurate - the same or nearly the same as the fees later charged at closing.
The idea is to eliminate some of the most controversial practices in home mortgages - the intentional or inadvertent underestimation of fees. Under the old system, some lenders low-balled their estimates to lure applicants away from competitors. The net effect was to hit unwary consumers with eleventh-hour surprises at closings - fees that sometimes were thousands of dollars higher than the estimates upfront.
In the past, no federal rule penalized these low-ball numbers, leaving shell-shocked borrowers to pay the difference. Loan officers and others who provided the low estimates were not held responsible.
As of the new year, this was all supposed to change.
The reformed good faith estimate, or GFE, requires lender-related fees to be identical - from application to closing - and allows just a 10 percent tolerance, or wiggle room, for estimates in other areas such as title insurance and closing fees. When the charges at settlement exceed the estimates, the lender - not the customer - must now eat the difference.
The new GFE also is designed to facilitate rational comparison-shopping on fees and other loan terms. It contains boxes allowing consumers to compare up to four different lenders' quotes and estimates, each essentially guaranteed to be accurate at closing.
Consumer groups applauded the new rules. Banking and mortgage industry groups grudgingly accepted them and complained that the Jan. 1 start date was too soon for them to master all the complexities.
Many loan officers and lending institutions are sidestepping the new, price-bound GFE by giving shoppers "worksheets" and "loan scenario" forms that come with no legal requirements for accuracy, and were not even contemplated under the reforms. In effect they are substitutes for the new GFEs but, in the wrong hands, are wide open to low-balling and bait-and-switch games.
The worksheets purport to contain much of the information provided by a GFE. Typically they are only issued when shoppers do not provide - or are asked not to provide - key information that constitutes an "application" under HUD's definition in the rules. For example, if a consumer does not provide the address of the property to be financed, there is no "application" and therefore no requirement to issue a tolerance-bound GFE.
Loan officers defend the worksheets - which they obtain in blank form from several national software suppliers - as necessary adaptations to HUD's get-tough regulations on costs. They argue that HUD is forcing them to provide hard and fast estimates on services or charges that they cannot always know with accuracy - especially those involving title and settlement services.
Bottom line for loan shoppers in the meantime: If you want hard and fast guarantees on fee estimates, and you're serious about comparing competing loan costs, demand a GFE, by name. If loan officers only will provide you worksheet estimates, be on alert. The lowest quotes you get may not be for real.
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| November 16, 2009 |
Bringing the Dream of Homeownership Within Reach
From The National Association of Realtors
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies for the Extended Credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including:
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Single-family homes.
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Condos.
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Townhomes.
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Co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by two additional factors:
1. Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
2. Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
See available homes
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Homeowners Fail to Take Advantage
The Stimulus Package was designed to help 7 to 9 million families;
The number of families that have been able to benefit from the stimulus package is falling far short of the goal. Banks have been slow to respond due to the volume of loans, but have been accused of not making a conserted effort to satisfy family's requests for relief. The results of modifications are beyond the control of those who need it most.
Take control. Many individuals and families have much more control of taking advantage of the tax credits. The good news is the extention and expansion of the Tax Credits makes it possible for even more people to purchase homes. Many thought that the opportunity had passed them by. Sales of homes dropped significantly when the tax credits expired.
This may be the last extention of the Tax Credits, so don't delay.
See What You Can Purchase
Identity Theft - An Easy Crime
Identity thieves almost never get caught.
The consequences of Identity theft are frightening. The problems that result from identity theft are much more complex and far reaching than we realize. Most are aware of the consequences that result if someone gains access bank accounts. What happens with other identity crimes?
For example, what happens with a stolen driver’s license? The thief is probably not stealing a driver’s license in order to operate a motor vehicle. The possession of a driver’s license allows them to obtain a birth certificate. With a birth certificate, they can get a SSN and establish residency (probably in another state). Crimes are much more difficult to police when the theft of the identity occurs in one state and the fraudulent use of the identity occurs in a different state.
Any crimes committed or bills incurred will be tied to the stolen identity. It may be years before crimes are committed using the stolen I.D.s. Thieves “season” the stolen identity to lessen the risk of being caught. The awareness of the offenses may not come until we have criminal records and insurmountable debt. The victim may not discover the problem until applying for a loan. Perhaps the run for wants and warrants during a routine traffic stop identifies shows felony crimes. The thief has disappeared and the only tie to the crime is the victim.
Even more frightening may be the theft of identity in order to obtain health care. This is one of the fastest growing areas of identity fraud. The consequences of someone receiving care under false identity may result in changes to the accuracy of the victims own records. Changes in care the victim receives, based on inaccurate information, may be fatal.
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Make every reasonable effort to protect your identity.
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Don’t carry more than 2 credit cards.
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Keep balances low to make it easier to identify issues.
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Have one card you use for entertainment with a $500.00 limit and pay the balance monthly. If the card is used fraudulently, you will limit your exposure to $500.00.
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Use cash for meals and entertainment.
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If someone asks for I.D., make sure it’s necessary.
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Don’t leave private information where anyone has access to it.
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Don’t carry Social Security Cards with you.
In addition, consider using identity theft protection services. Some services available are:
Notification; clients are notified of identity theft for about $9.00 / month.
Resolution; clients are notified and given directions and a list of phone contacts for about $15.00 / month.
Restoration; clients are notified and the service provider restores our credit for about $35.00 / month.
The cost to clear up credit issues resulting from identity theft is about $2,500.00 per infraction.
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| October 15, 2009 |
Utah economy on the road to recovery
According to an article in the Salt Lake Tribune, by Chris Sloan, President of the Utah Association of Realtors, Utah's economy is on the road to recovery.
Well - positioned for an economic recovery
That is the message the University of Utah's Bureau of Economic and Business Research in a presentation to the Utah Realtors. "Utah's fundamentals are still in place, once growth resumes, Utah will outperform most states" according to James Wood.
The fundamentals are:
1. The State Governments fiscal responsibility
2. The State's transportation infastructure
3. Population growth
4. Quality of life
5. A quality and cost-effective work force
Even with today's down economy, we've got in-migration coming to Utah.
Wood says Utah's recovery will coincide with that of the nation as a whole. Nationally we have seen recent reports of positive national news. In the spring, the 38 month decline in home building ended as well as the 27 month drop in existing home sales in the four Wasatch Front Counties and Tooele.
1. Existing home sales are increasing
2. New home starts are increasing
3. Improvements in productivity
4. Improvements in retail sales
Maintain a Positive Perspective
Wood echoed the message we have supported that "The private sector must be the driver of a self-sustaining economic recovery." Governor Gary Herbert, who attended the meeting said " What we need to do is be proactive." Herbert said "I can do something about Utah, and my focus is that Utah can survive the storms that are out there."
Find a Real Estate Professional
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Unbelievable Morgage Rates
According to Freddie Mac, mortgage rates may be as low as they are going to get.
“Mortgage rates rose slightly over the week, but rates on 30-year fixed mortgages remained below 5 percent for the third consecutive week,” said Frank Nothaft, Freddie Mac vice president and chief economist.
After a recent decline in rates, 30 year rates inched up to 4.92 percent during the week ending October 15, up from 4.87 percent last week.
Still under 5%
It’s still handily beating its year ago average of 6.46 percent, and anything under five percent is certainly historically low. The 15-year fixed and Adjustable-rate mortgages followed a similar path.
The point to note is that rates are markedly better than a year ago. In fact, they are as low as they have been in 50 years.
Complaining about rate increases from 4.87 last week to 4.92 this week is like complaining about crowded conditions on an airplane, airport delays and the five hours it takes to cross the country, when, it wasn't long ago that the trip took months, required rigorous physical exertion and perhaps death of our traveling companions.
Interest rates are very good. We don't know how long these favorable terms will last. There will be a reason to complain if we don't take advantage of the opportunities the low interest rates provide.
For Mortgage Information
Miller & Company Real Estate Services, Inc.
4885 South 900 East
Salt Lake City, Utah 84117
801 566-6600
visit our website
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October maintenance checklist
With fall in full swing, now's the time to get your home and yard ready for winter.
October is the first full month of fall; by the end of this month, most of your winterization should be completed. Falling leaves and dwindling daylight signal a final opportunity to do some outdoor organizing before winter settles in.
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Drain underground sprinkler systems.
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Have outdoor pools drained and professionally serviced.
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Drain exterior water pipes and any pipes that run through unheated areas (such as a garage, crawl space or unheated porch). If draining these pipes isn't possible, wrap them with foam insulation or heat tape.
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Cover exposed spigots with foam covers. Or, if cosmetics and ease of removal don't matter, wrap spigots in layers of newspaper, cover the newspaper with a plastic bag, and seal the whole affair with duct tape.
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Drain and store garden hoses. Leave one hose and nozzle somewhere that's easily accessible; you'll need it for gutter cleaning and car washing.
Read the MSN Article
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| September 15, 2009 |
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"Cash for Clunker Houses"
“Cash for Clunkers” Success
The "Cash for Clunkers" incentive program was widely accepted by consumers. Car dealers had record breaking sales during the months the program was offered. Although there were reports of delays in dealer's receiving their refunds, overall the program was successful. The program was successful enough, that dealers are now advertising cash for clunkers themselves and some are offering more money than the $4,500 offered in the federal incentive program. Is there cash for clunker houses?
Cash for Clunker Houses?
It doesn't make sense to destroy clunker houses and replace them with new ones. The costs of demolition and rebuilding, in most cases, would outweigh the benefits. There is money in the form of government loans and incentives for the purchase, repair or improvement of "Clunker Houses".
$8,000 Home Buyer Incentive
This incentive which provides a tax credit (10% of the purchase price up to $8,000) for first time home buyers will expire Nov. 30, 2009. Time is running out. Allow time for the loan process to be completed because purchases must close by Nov.30.
FHA 203(k) Streamline Loan
The 203(k) provides a unique solution for buyers who purchase a home needing repairs. The loan will include up to $35,000 for non-structural repairs and improvements.
Many investors do not endorse the 203(k) Streamline, so even though the program is available from FHA, few brokers are able to offer this product. Miller Mortgage can help.
FHA’s Energy Efficient Mortgage (EEM)
The energy efficient mortgage is designed to help property owners reduce the cost of utilities by improving the energy efficiency of the home. An EEM will allow you to finance 100% of the approved energy efficient upgrade. The loan will also allow an additional 5% of the value of the property (not too exceed $8,000) or $4,000, whichever is greater, added to the loan amount.
The savings in utility costs even with the increased monthly payment will result in lower overall costs.
Eligible properties include; 1-4 unit properties, existing construction, new construction, SF townhouses, condos, manufactured homes and duplexes.
Contact Miller Mortgage for details.
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Home Sales are Increasing.
Houses are selling. Have you noticed fewer homes for sale in your neighborhood?
Nationally, according to The National Board of Realtors, home sales have increased each month for four consecutive months.
One reason is that more homes are affordable. The NHBA uses an index to determine the affordability of houses, the Housing Opportunity Index. The HOI is determined by several factors; median family income, median sales price, and a weighted interest rate.
A review of the historical HOI shows that housing is more affordable this year than any year since 1992. An example of the historical data shows the amazing affordability today. In 2005 when the economy seemed to be booming, the affordability of housing was significantly lower. In 1992 average buyers qualified for 53.9% of homes on the market. In 2005 it was less, with the average buyer able to purchase 50.1%.
The HOI showed that 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income.
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What Should Home Maintenance Cost?
Preventive maintenance can save thousands of dollars by avoiding more serious and more costly damage due to neglect. Paying for maintenance may be difficult without planning and setting aside funds for it.
Sources say that property owners should spend 1% to 3% of the property value per year for maintenance. For a $250,000 home that’s $2,500 - $7,500 per year.
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| August 17, 2009 |
Choose to Be a Leader
"Leadership will not allow uncertainty to stand in the way of our team, of our clients or of our business." ... Bruce Case
Bolster Consumer Confidence
The housing market has bottomed out or is near the bottom according to leading economic indicators. The recession is slowing and we should expect the economy to improve. We are told that those with money don't want to miss out on opportunities to purchase at low interest rates and low real estate prices. Consumer confidence should be improving, but is it? The opinions of forecasters and their economic indicators are words, not actions. The old adage of "actions speak louder than words" may never be more applicable. What actions are taking place to assure consumers, including businesses large and small, that the time to act is now. Someone must lead us in to economic recovery.
Leadership should come from many sources. Lenders need to make money available to consumers by using reasonable credit standards. Government needs to lead by reducing added regulations that slow the process and in some cases, cause home purchases to fail. Business needs to employ workers by creating jobs by looking ahead and preparing for the future.
Be a Leader
An article in Professional Remodeler by contributing editor Bruce Case describes a pathway to take charge. He said he woke with an "epiphany". "I either need to lead or get out of the way. Our team needs a true leader they can trust will take them (and thus their families) through these turbulent times intact. They need someone who is looking out 12-24 months and making moves today to proactively respond to that outlook. They need someone who instills stability and confidence during times when they aren't getting that from others."
This describes the outlook of Miller & Company and our leader, to improve our business and services in preparation for the market improvements. When other real estate offices are closing their doors, we are opening our doors to experienced qualified agents. We are improving our team. We are increasing our market share and improving our business services in anticipation of the better economy ahead.
Contact Miller & Company Real Estate Services, for more information or to join our forward looking team.
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What Should You Do If You Think a Servicer Isn’t Following the Making Home Affordable Program Guidelines
Members have called NAR asking what to do if they think that servicers are not following the guidelines for the Obama Administration’s Making Home Affordable Program for modifying eligible mortgages and refinancing Fannie Mae and Freddie Mac mortgages. Here are the recommended steps to take:
1) First, go to www.makinghomeaffordable.gov, the official Treasury website for the Making Home Affordable Program. At the site, determine whether the loan is owned or guaranteed by Fannie Mae or Freddie Mac by clicking “Loan Look Up” on the ribbon on the top of the home page. Only the holder of the loan is allowed to perform this , so do in the presence of your client or after obtaining their written permission.
If the loan is a Fannie Mae or Freddie Mac loan, call (1) 1-800-7Fannie or (1) 1-800-Freddie, as appropriate, describing the specific inconsistency. Do this whether the issue relates to the refinancing or the loan modification program.
2) Next, if the loan is not owned or guaranteed by Fannie Mae or Freddie Mac you can determine if the servicer is participating in the Home Affordable Modification Program (HAMP) by going to the website and clicking “Contact Your Mortgage Servicer” on the top ribbon. To date, 16 servicers are participating, covering more than 80% of all mortgages.
If the servicer is participating, the first step is to contact the servicer using the phone number or email address listed on the site so you can appeal the issue to a supervisor. Be sure to identify the specific provision of the guidance that you believe is not being followed. If the supervisor cannot or will not correct the problem, call 1-800-7Fannie to report the disagreement. Fannie is administering the program for the Treasury Department and will work to resolve the issue.
Making Home Affordable Program Website (consumer friendly)
www.MakingHomeAffordable.gov
Site for Detailed Information on Making Home Affordable and Other Government Programs
Contact Miller Mortgage Services , Inc.
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Fall
Yard care Tips
Now that the dog days of summer are nearing an end, it is time to pay attention to the some of the plants and areas of the lawn that suffered from the excessive heat of summer.
By the end of August, when the temperatures cool.
Spray a Broadleaf weed control agent on the lawn to control some of the more aggressive weeds.
The spurge and bind weeds that are creeping in from the edges of the sidewalk and driveway can be controlled by adjusting the way you mow and edge in those areas.
Adjusting your mower to the higher settings can also help hold in the moisture as well as block some of the more aggressive weeds from getting a foothold.
As the fall season approaches keep in mind that this is one of the best opportunities to treat the weeds in your yard. By treating them at the right time the weed killer will go into the root and will weaken or kill the plant.
If there are dry spots in your yard take the time to find out if your sprinklers are adjusted properly; increase the run time if needed. If you don’t have a sprinkler system and have to hand water, allow more time for the sprinkler to run.
By bringing these dry spots back now your lawn will be ready for fall fertilizing and spring will bring a thicker healthier lawn. Read the entire Property Management article.
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HOUSING BOTTOM
Two local experts believe the Utah housing industry is near or has hit bottom.
In a recent Salt Lake Tribune artilce James Wood, the director of the University of Utah's Bureau of Economic and Business Research is quoted as saying " the diminished weakness in recent months allows for some hope that the bottom of the housing cycle in Utah is near".
Kurt Dowdle, chief executive of the Salt Lake Homebuilders Association is more positive, saying "the industry may have hit bottom in Utah already or it is near ".
This is good news, especially considering the deep decline Utah's housing industry has suffered.
Deep Impact
15 states suffered steeper declines, but the extent of the damage in Utah is significant:
$20 billion of the state's residential real estate wealth wiped out.
13,000 housing industry jobs lost.
100s of builders and contractors forced out of business.
17,588 fewer building permits in 2008 than the peak in 2005.
Incentives Help
According to the article, two strong government incentives helped.
The federal government offers an $8,000 Tax Credit for first time home buyers. This incentive is available through Nov. 30, 2009, but may not be offered again.
Utah Home Run Grant offered $6,000 in down payment assistance to purchasers of new homes. All 1,600 Home Run Grants have been used in the purchase of 1,600 homes that were finished, but had never been occupied.
Builders of new homes and sellers of existing homes also offer amazing incentives. These incentives vary, but include offers such as free features and upgrades, matching dollars and lower interest rates. Existing home sellers not only offer reduced pricing, but often help pay closing costs in order to close a sale.
Never a Better Time to Buy
Although the Home Run Grant is all used, the $8,000 Tax Credit is still in place, builders and sellers are offering unheard of incentives and the interest rates are near hisorical lows. All the elements have combined to make the Perfect Storm of purchasing conditions. Contact a real estate professional to guide you through the process.
INCENTIVES - Government and private seller and builder incentives.
INVENTORY - There is still a large inventory of property
INTEREST - Interest rates are still near historical lows.
Read the Salt Lake Tribune Article
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