Real Estate Information Archive

What you don't know about your personal credit may acutally hurt your credit.  When was the last time you saw a copy of your personal credit report?  If you haven't checked it recently, it might be time to go ahead and get a copy.  Especially if you are considering purchasing real estate in the near future.

It is estimated that 2 out of 5 people have the wrong information on their credit reports.  Incorrect information can cause long delays in the approval process and can be the basis for denial of credit, including a mortgage.

The time to check with the three major credit reporting agency is when you don't need the credit.  It sometimes can take months to straighten out any problems and you don't need the added stress while you are going through the homebuying process.

There are three major credit reporting agencies - Experian, Equifax, and Trans Union.  Because they operate differently, it is wise to check with all three.  By law you are allowed to check your credit with each of these agencies once a year.  A little secret:  Check each agency every 4 months and you'll keep yourself in check with your credit year round!  You can either do it on-line or by phone. 

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the
Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.  WOW!!  What a great time to buy a new home!!! 

Shaun Donovan's remarks came in address to The National Association of Realtors Real Estate Summit today. An excerpt from the press release on the NAR's website is listed below:

Secretary Donovan said that important changes, which the National Association of Realtors^® has been calling for, will help consumers purchase a home. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment," Donovan said. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Donovan said the Obama administration plans to further stabilize the housing market. "I do think we have some early signs hat the market overall is stabilizing," said Donovan. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."

For the entire article, click here!  If you are in the market for a new home or have more questions about the $8000 tax credit, contact The Mike Parker Team today!!!

Looking to do a little spring cleaning and while your at it, do those home repairs you've been putting off?  Recently Bob Markovich from Consumer Reports magazine tells the TODAY SHOW about some important home repairs that will save you money in the future.  Check it out!!

Governor Beshear announces help for first-time home buyers!!  We just received this information from the Kentucky Association of Realtors!!!

 Many states have set up special programs to help potential first-time homebuyers overcome the obstacles in buying their first home. The Kentucky Association of REALTORS would like to inform its members of a special initiative in Kentucky, announced by Governor Steve Beshear yesterday.

On April 22, 2009 Governor Steve Beshear announced a special initiative by the Kentucky Housing Corporation to offer up to 4,500 for down payment and closing costs for first-time home buyers who obtain a KHC home loan. The program will begin on May 1, 2009 and continue through Nov. 30, 2009. To view the press release, click here <http://governor.ky.gov/pressrelease.htm?PostingGUID=%7b6FEFBA97-5F31-460E-B978-C2D7BC6B891E%7d> or continue reading the information below.

The First Home Advantage Program provides a second mortgage with principal and interest payments deferred until July 1, 2010 for KHC-approved, first-time home buyers.

"For many first-time home buyers, the biggest barrier to homeownership is the ability to pay upfront expenses, such as the down payment and closing costs," said Gov. Beshear. "The innovative First Home Advantage Program will not only help qualified Kentucky home buyers overcome this barrier and realize their dream of owning a home, it will hopefully reinvigorate the housing market help get our economy moving in the right direction."

The First Home Advantage Program offers a 10-year loan that defers payment with a zero percent interest rate until July 1, 2010. After the initial deferment period, the loan will fully amortize over ten years at the rate of 6 percent. If the borrower pays off the loan before July 1, 2010, KHC will forgive $300 of the principal balance.

The American Recovery and Reinvestment Act of 2009, signed into law by President Barack Obama on February 17, 2009, provides first-time home buyers with an $8,000 tax credit. After purchasing their home, home buyers have the opportunity to file for the housing tax credit provided by the stimulus on their 2009 tax returns and use the tax credit for the repayment of the First Home Advantage Program loan to take full advantage of the prepayment incentive.

"We want to do everything we can to help Kentucky homeowners purchase their new homes," said Richard L. McQuady, chief executive officer of KHC. "The First Home Advantage Program allows home buyers to take advantage of every opportunity available to them in these difficult times."

In order for home buyers to qualify for this program, they must obtain a KHC first mortgage through a KHC-approved lender, be a first-time home buyer, meet KHC income and purchase price guidelines, and have a 620 minimum credit score.

To learn more about KHC's homeownership programs, visit their Web site www.kyhousing.org <http://www.kyhousing.org/> .

Sunday April 26 is Open House Super Sunday for the tri-state!!!  Realtors will be holding open houses in both Cincinnati and Northern Kentucky.  The goal is to have over 2000 open houses through out the tri-state!!!  Check out Northern Kentucky's area open houses by clicking here.

We will be holding the following incredible properties open from 1:00pm - 3:00pm that day.  Hope to see you all out and about!!!  It should be a great event!!

17 Airview, Florence, KY

6465 Deermeade, Florence, KY

428 Pinnacle, Ludlow, KY

Recently the proposed $15,000 tax credit was just trimmed down to $8,000.  This is still great news for all those first time home buyers out there - especially those in Northern Kentucky.

The tax credit that is part of the Housing amendment is simply this: All first time buyers now have a one time $8,000 tax credit if they buy a house this year. This IS NOT A LOAN like last year's plan, but a true credit.  The house must be closed between January 1st 2009 and December 31st 2009.   A first time home buyer according to the IRS is anyone who hasn't owned a home in the last three years.    THis stimulous is also income guided meaning as a single person you have to have earned less than $95,000 or $170,000 if you are  married.  As always,  you should check with your tax person to make sure you qualify.

Having a hard time making those mortgage payments and are you fearing foreclosure in your future?  Here are some helpful tips to try to avoid foreclosure.

1.  Do not ignore the problem - it won't go away if you put it out of your mind.  The more you become behind on your loan, the harder it will be to reininstate the loan and the more likely it will be you will loose your house.

2. Contact your lender as soon as you realize that you have a problem.

Believe it or not but Lenders do not want your house. They have options to help borrowers through difficult financial times.  Don't hesitate giving them a call.  

3. Open and respond to all mail from your lender immediately.

The first notices you receive will offer good information about foreclosure prevention options that can help you withstand your financial problems.  Some mail may include important notice of pending legal action.  Telling a judge in foreclosure court that you didn't open your mail won't be a good excuse.

4. Know your mortgage rights.

Read your loan documents so you know what your lender can do if you can't make your payments.  Learn about the foreclosure laws and timeframes in your state (every state is different) by contacting your State Government Housing Office.  


5.  Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling throughout the country.  These counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need help. Find a HUD-approved housing counselor near you or call (800) 569-4287.

6. Prioritize your spending.

After your healthcare, keeping your home should be your first priority.  Review your finances and see where you can cut spending in order to make your mortgage payment.  Look for optional expenses-cable TV, gym memberships, entertainment, anything that you can eliminate.

7. Use your assets.  

Do you have assets-a second car, jewelry, that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in that needed extra income?  Even if these efforts don't significantly increase your income, they proove to your lender that you are willing to do what it takes in order to keep your home.  

8. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage. Many for-profit companies will contact you promising to negotiate with your lender.  These may be legitimate businesses, but they may charge you a hefty fee for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

Don't wait to recieve that dreaded letter from your lender.  If you are having financial difficulty and are unable to make your mortgage payment, contact a HUD Approved counselor today!!!

Do you need to speak to a real estate professional about further foreclosure questions?  Contact Mike Parker/HUFF Realty via email at mike@mikeparker.com or phone 859-647-0700.  The Mike Parker Team would be glad to answer any questions we can.

Try some of these tips in your home for going green.

• A flat panel LCD TV uses a third less of the electricity of the tube based models, and with the digital switch in the near future, getting a LCD makes even more sense.
• Use paints low in volatile organic compounds (VOCs).  They are safer than the latex-based enamel.
• Use low flow toilets - they deliver more flush power and use less water.
• Install a solar hot water system and you can stand in the hot shower all day long.
• Install birdhouses around the yard.  Great for your feathered friends who like to dine on beetles and grubs - then you won't have to rely on pesticide.
• Recycle newspapers and other items whenever it's possible.  Reuse your plastic bags at least once or elimate them all together.
• Unplus your electronics when you aren't using them.  This can use up to 20% of power when they aren't even plugged in!!
• Use energy efficient utilities such as a furnace, air conditioner, dishwasher and water heater.
• Use compace flourescent light bulbs.
• Use caulk and weather stripping to insulate your home.
• Start your own garden.
• Take up composting.  Pick a spot that is out of the way in your yard - throw in coffee grounds, eggshells, spoiled vegetables and other leftovers, mix them with dirt and once a week turn everything over with a shovel.  Not only will you help the environment, you'll create rich soil for your garden that you've started!!
• Try to avoid aerosols - they can't be recycled and also contribute to air pollution.

These are just a few things that can help you help the environment and it can save you money too!!!!

The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry.  The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

Here is what we know so far:

•  Amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less
•  Purchases must be made within one year of the legislation's enactment
•  The tax credit would not have to be repaid
•  The amendment would allow taxpayers to claim the credit on their 2008   income tax return
•  Only purchases of a principal residence
•  Recapturing the credit if the home is sold within two years of purchase
•  Would sunset the current $7,500 housing tax credit on the date of enactment.

This is a bright spot in the real estate industry.  We'll keep you posted as we find out more information on this exciting news.

I am a big fan of the TODAY show and often they have real estate expert Barbara Corcoran on to talk about real estate.  Recently she wrote this article about the Five Big Mistakes Overanxious Homeowners Make and I just had to share it with you.....it's right on!!! Check out the video from the TODAY show as well.  It's very informative.

So, you need to get rid of your house and you need to do it quick. Perhaps you have an adjustable rate loan that is about to skyrocket, or maybe you just got a job in another city. Whatever the reason, don't panic. This may not seem like the best time to dump your house, but if you follow my advice, it's possible.

Below are the five biggest mistakes struggling homeowners make when selling their home. I'll also show you some foolproof home-selling tactics that will get you the highest sticker price for your house.

The five big mistakes overanxious homeowners make

Making small price reductions again and again
Nothing smacks of desperation more than incremental price drops. The longer a property is on the market, the more jaded the buyers become. The more times the price is cut, the staler the offering appears. Buyers reason that a lot of people must have seen it and that a lot of people must have rejected it. And if that is the case, then why even bother to consider it?

Instead, slash the price. Find out what your house is worth by looking at similar properties in the neighborhood and price it 10% below them. The most enticing houses on the market are the newest and the cheapest. If you can be both, you'll offload yours in no time at all.

Hiring the wrong broker
There are many ways of finding a good broker. Personal recommendations from friends and colleagues are often the best way to go. If someone outside the real estate business with nothing to gain is bringing up a broker, you can be pretty sure you're on to a winner. The best brokers -  the top 10 percent -  do 90 percent of all the business. So don't get stuck with a lemon. You want someone with enthusiasm and drive, someone who will give you the attention you need and steer you through the whole messy process with courtesy and professionalism.

Waiting it out
If you decide to wait, you are joining the thousands of other homeowners who have also decided to wait. When a few decide it's time to take the plunge, you are already too late. If you need/want to sell now, then sell now. There will never be a better time.