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Fate of Foreclosure Programs Heads to a Vote

by Jodi Lemkemann, Keller Williams Premier Realty

Republicans on the House Financial Services Committee said they will push for a vote next Thursday on bills that would end four government programs that are aimed at helping prevent foreclosures.

Among the programs on the chopping block include the Home Affordable Modification program, which was created to help struggling home owners reduce mortgage payments by offering lower interest rates and longer repayment times. The Treasury Department recently acknowledged that HAMP will fall short of meeting its original goal of preventing 3 to 4 million foreclosures; it’s expected to complete 700,000 to 800,000 loan modifications.

Other smaller programs at risk are aimed at refinancing loans, helping unemployed home owners, and aiding state and local governments in buying foreclosed properties in order to sell or rent them.

Committee chairman Rep. Spencer Bachus, R-Ala., says the foreclosure prevention programs haven’t had much impact and, in some cases, actually are doing more harm than good in helping struggling home owners.

The Obama administration argues that killing the programs will hurt home owners.

"The administration remains committed to reaching eligible home owners to give them every opportunity to avoid foreclosure and will continue working to make our programs as effective as possible," said an Obama administration spokesperson.

Source: “House Committee to Vote on Bills Ending Obama Foreclosure Programs,” Dow Jones (Feb. 24, 2011); “Obama Admin. Says Committed to Helping Homeowners,” Reuters News (Feb. 24, 2011); and “House Committee to Write Bill Ending Embattled Program for Preventing Home Foreclosures,” Associated Press (Feb. 24, 2011)

Tablet Market Heats Up With Xoom Debut

by Jodi Lemkemann, Keller Williams Premier Realty

Tablets are the hot new technology these days and more choices are emerging that are trying to take a bite out of Apple’s iPad, the device that set the tablet craze in motion. Motorola’s Xoom, which hit stores this week, is expected to be Apple’s most likely contender.

The Xoom boasts plenty of features: It runs the Android 3.0 operating system, 32GB of internal storage, and dual cameras (a front-facing 2-megapixel for video chat and a rear-facing 5-megapixel camera with a flash that can capture high-definition video).
The tablet also boasts a high-resolution (1280x800) display and offers connectivity capability through an HDMI port so you can display contents of the device on your TV.

Eventually, when it becomes available, the Motorola Xoom will offer a free upgrade so it can run off of Verizon’s super-fast 4G LTE network, which boasts data speeds 10 times faster than 3G.

While the Xoom boasts some extra features that Apple’s iPad currently does not have (the iPad does not have cameras and has a smaller screen display), Apple is expected to unveil iPad 2 in a media event next Wednesday.

As far as price, the Xoom’s Wi-Fi and 3G version from Verizon Wireless costs $599.99 with a two-year contract, or $799.99 without a plan. A Wi-Fi-only version will be offered later (price still to be determined). Apple's current price for its Wi-Fi-only iPad with 32GB of storage is $599, while a version with Wi-Fi and 3G costs $729. Data plans are not required for the iPad.

Source: “Tablet Market Just Keeps Getting Cooler,” USA Today (Feb. 24, 2011)

Easy Solutions for Kitchens & Baths

by Jodi Lemkemann, Keller Williams Premier Realty
It's too easy for a remodeling budget go down the drain when improving a kitchen or bathroom. Small, inexpensive improvements such as painting or refinishing tubs, sinks, cabinets, countertops, and even grout can give old kitchens and baths a fresh feel.

Cabinets

Dark cabinets can make a kitchen look cave-like. But your seller doesn’t need to spend the big bucks for new cabinetry. As long as the cabinets are in good condition, you can update their look for under $250.  New cabinet knobs or handles—an easy do-it-yourself project—can instantly upgrade a kitchen. You can get hardware for as little as $2 to $3 apiece. "It’s amazing how you can transform decent cabinets by just swapping out the hardware and bringing it up to date," Millholland says. Brushed nickel hardware looks high-end, Fisher says. Chrome is also a good option, while black and bronze are gaining popularity. Avoid dated brass knobs. For outdated cabinets get out the paintbrush. Painting cabinets a rich, neutral color or refinishing the cabinets with a clear coat can greatly enhance their appearance and brighten the kitchen. Popular color choices are warm earth tones, such as off-white cabinetry with butterscotch glaze (it really pops when combined with a tannish gold granite countertop) or cream colors, Millholland says. 

Counters

Granite is still king when it comes to countertops (with quartz a close second). The price of granite has dropped considerably in recent years, even as low as $29 per square foot, which makes it not much more expensive than laminate, says David Alderman, president of the National Kitchen and Bath Association. But if granite still doesn’t fit sellers’ budget, they may be able to get the look for less with updated laminates that resemble granite, or by enhancing the look of the countertops they have. Some companies offer kits to help make countertops resemble granite styles. In her listings, Fisher has used a $49.95 color kit from Giani Inc. (www.GianiGranite.com) that takes laminate, ceramic tile, or other countertops from plain to a marble-like appearance. For a modern look, liquid stainless steel finish is also available. Even those old tile countertops can be saved. Fisher suggests hiring a professional to clean or paint the grout. Fisher turned to The Grout Doctor, a grout cleaning company with nationwide franchises, to overhaul white tile countertops that had dark purple grout. The purple was off-putting in photos, she says. She had the grout refinished in a light cream color. It cost less than $220 and made a drastic improvement. (Tip: Cleaning and refinishing stained or dirty grout on floors and bathtubs can make a big difference, too. Just be sure to keep your grout color neutral for best results.) 

Fixtures

Instantly make a dated bathroom more modern with just a few enhancements to the fixtures. For example, removing that large plated glass mirror or old medicine cabinet and replacing it with a framed mirror in a rich finish like oil-rubbed bronze, can make a big change at a small cost, says Bill Millholland of Case Design/Remodeling Inc. "It’ll make the bathroom look much more sophisticated," he notes. "Typically a bigger mirror is better than a smaller one, but consider its proportion to the room—it will look awkward if it’s too big." For an easy, elegant look, add sconces on each side of a framed mirror, adds Alderman.

If your faucets have forever lost their shine, you might consider replacing those too, even for as low as $20. You’ll want to make sure your lighting and faucet finishes all match, Millholland recommends. The most popular bathroom faucet finishes are brushed nickel, followed by polished chrome and satin nickel, according to an NKBA trend report. 

Surfaces

Terrylynn Fisher has seen multitude of colors in bathroom countertops, sinks, and tubs—from pink sinks to brown tubs to baby blue tiles. But it’s not easy to sell a pea-green tub, and it’s pricey to replace it. Fisher, a salesperson with Empire Realty in Walnut Creek, Calif., has covered up such bathroom color dilemmas by hiring pros to refinish the problem areas in a neutral white. Two national franchises, Miracle Method and Permaglaze, can refinish porcelain, fiberglass, and acrylic, among others, and repair cracks to make the material look new. Fisher has found that to be a cost-effective solution: She paid Miracle Method about $350 to refinish a pink bathtub and shower and about $200 for the counter and sinks, changing them to a neutral white. For $550, the change completely transformed the once-colorful bathroom into a more pleasing neutral one for resale that no longer had buyers grimacing. 

Create That Hotel Feeling

Luxurious bathrooms do more than help home owners unwind—they also help attract buyers. For a spa-like ambiance, bring in fluffy towels, attractive wall décor, dimmable lighting, soothing sounds, fragrant scents, and accessories in cool and calming colors. 

Appliances

Kitchen appliances that are mismatched or dated can be difficult for buyers to look past. As long as the appliances still work, an increasingly popular option is painting them. Several companies, such as Rust-Oleum and Krylon, make special paint to spray or brush over appliances in black, white, or other shades. Stainless steel paint, such as Thomas’ Liquid Stainless Steel, will give a refrigerator, dishwasher, or range a brushed-on look. Costs for the special paints start at $19.95; you can often find kits designed for specific appliances. Of course, you’ll want to disclose such updates to buyers and make them aware of any upkeep issues. 

HOMETIP FROM HOUSELOGIC

Buyers Love pull-out shelves in a kitchen. You can add them fairly easily to most cabinets.

They are available in three basic materials:  + Solid wood + Metal wire + Plywood sides with fiber bottoms

 

Read more at http://www.houselogic.com.

 

 

Top 5 Priciest Places to Live

by Jodi Lemkemann, Keller Williams Premier Realty

It’s not cheap to own real estate in California, according to a recent article at CNNMoney.com, which reveals the five least affordable housing markets in the country. California cities snagged three of the top five spots.

Here are the top five least affordable housing markets, according to CNNMoney.com:

1. New York City
Median home price: $425,000
Median income: $64,800

2. San Francisco
Median home price: $625,000
Median income: $96,800

3. Honolulu
Median home price: $450,000
Median income: $79,300

4. Santa Ana, Calif.
Median home price: $435,000
Median income: $86,100

5. Los Angeles
Median home price: $320,000
Median income: $62,100

Source: “Most (and Least) Affordable Cities to Buy a House,” CNNMoney.com (Feb. 19, 2011)


Wells Fargo Refunds $10 Million to Vets

by Jodi Lemkemann, Keller Williams Premier Realty

Wells Fargo & Co. has agreed to refund up to $10 million in fees to eligible military veterans who refinanced their mortgage with the bank, in settling a lawsuit that alleges the bank harmed veterans by charging improperly high fees on mortgages.

The lawsuit filed in the State Court of Troup County, Ga., claimed the bank failed to use "reasonable care" in assessing attorney fees when complying with the Veterans Administration's Interest Rate Reduction Refinancing Loan rules.

Veterans who refinanced with Wells Fargo between Jan. 20, 2004, and Oct. 7, 2010, are eligible for the refunds from the settlement.

"Since the lawsuit allegation was raised, we have diligently worked with our veteran customers who inquired about their fees and we refunded them if there was an error in the third-party charges that were assessed," says Cara Heiden, co-president of Wells Fargo Home Mortgage. "We hope that by settling this matter, we can demonstrate to veterans our steadfast commitment to doing right by them."

Banks have been fighting off a number of allegations in recent weeks that they’ve mishandled many mortgages for military families and vets.

J.P. Morgan Chase & Co. recently has apologized for overcharging at least 4,500 active service members and wrongly foreclosing on 18 military families.

Laws are in place for veterans and active duty military members to limit their interest rates and fees with mortgages and protect them from foreclosure.

Source: “Wells Fargo Settles Veteran-Related Suit for About $10 Million,” Dow Jones (Feb. 18, 2011)

New Fed Rule May Lower Costs for Borrowers

by Jodi Lemkemann, Keller Williams Premier Realty


A new Federal Reserve rule that takes effect April 1 is expected to lead to lower costs for borrowers, but some experts say it’s going to hurt the mortgage industry.

Under the new rule, borrowers who get their mortgages through brokers likely will pay less for services and brokers will be required to offer borrowers the lowest possible interest rate and fees that they qualify for. Most banks and other direct lenders, including some mortgage companies that operate like banks, are exempt from the rule.

The new Federal Reserve rule--the “Loan Originator Compensation amendment to Regulation Z”--is to help prevent borrowers from being steered into high-cost or risky loans.

Mortgage brokers used to earn more money on a loan the higher the interest rate and points. But the new rule covers how a loan originator is paid, setting a fixed commission and no longer tying the amount to the loan terms.

Some in the mortgage industry aren’t happy with the new rule, saying it makes mortgage brokers less competitive against the big banks.

“I will now get paid the same amount to process a plain-vanilla loan as I will a complex loan of equal size that requires more work,” says Mark Yecies, an owner of SunQuest Funding, a mortgage broker and lender in Cranford, N.J.

Officials with the National Association of Mortgage Brokers also have expressed concerns, saying the rule would likely put a lot of independent brokers out of business.

Source: “New Fed Rule for Mortgage Brokers,” The New York Times (Feb. 17, 2011)

Take Some Tax Breaks for Moving

by Jodi Lemkemann, Keller Williams Premier Realty


For those who moved in 2010, you may find tax deductions to write-off some of those hefty moving expenses.

You can write off relocation costs on your taxes, as long as the move is work-related, according to the IRS.

Some IRS-approved deductions for moving include the costs to move household goods and personal property, limited storage and insurance fees, and utility connection or disconnection charges, according to Bankrate.com. The IRS also allows for some deductions with lodging and travel expenses near your new and former homes, as well as shipping costs for your car and even the travel arrangements for your pets.

Here are some tips for claiming moving-related tax deductions, according to Bankrate.com:

  • Use the long Form 1040 to claim moving costs. Use Form 3903 to figure the costs. You do not have to meet a percentage-of-income threshold for moving deductions.
  • Ensure you meet the distance test. The location of your new job must be at least 50 miles farther from your prior address than your last office was. For example, if you lived 10 miles from your old job, your new job must be at least 60 miles from your old home before you can deduct moving costs.


The IRS’s distance test only considers the location of your old home and how far it is from your previous job, not your new residence.

  • Check the time requirements. Moving expenses are deductible if they were incurred within one year of starting a new job. You also have to work full time at a new job for at least 39 weeks during the first 12 months. As for self-employed workers, they must meet the year-to-move deadline and work full time at their entrepreneurial enterprise for 78 weeks during the first 24 months.
  • Collect all of those moving receipts. To claim the deductions, make sure you have receipts such as for the costs to move your property, storage, or utility connections.


Source: “Let Uncle Sam Help Pay for Your Move,” Bankrate.com (February 2011)

Read More:

17 Tips for Packing Like a Pro

Boomers Expected to Change Housing Priorities

by Jodi Lemkemann, Keller Williams Premier Realty


Developers and builders expect baby boomers to re-emerge in the real estate market soon, but they say boomers likely will come with a simpler agenda when it comes to what they’re looking for in a home.

"We have an opportunity to rethink a lot of the things we've done" in designing communities and homes that are intended for that age group, says Douglas Van Lerberghe, a land planner in Denver, who spoke during the National Association of Home Builders conference in Orlando, Fla., last month.

Housing experts predict retiring boomers will want a greater variety of housing styles, smaller homes, and developments that are restricted to older buyers.

Other high priorities they expect from this age group:

▪ Younger boomers will want to continue to work so homes close to job hubs will be important and home offices in floor plans.
▪ Walking trails are a No. 1 amenity desired by this age group.
▪ Gated access to communities and security is important.
▪ Expanded storage into garages.

Source: “Boomers Set to Reshape Housing Market, Again,” Chicago Tribune (Feb. 13, 2011)

6 Real Estate Markets Poised for Recovery

by Jodi Lemkemann, Keller Williams Premier Realty


While home prices continue to fall in many markets across the country, CNNMoney.com has compiled a list of cities that are expected to defy that trend.

Here are six metro areas expected to record some of the largest price gains in real estate by 2012:

1. Tacoma, Wash.

Median home price: $240,000

Projected gain by September 2012: 11.8 percent

Tacoma is in the right location for growth: It’s situated next to the Washington capital and has a port, rail terminus, and access to the mountains and Puget Sound. It also offers plenty of developable land than it’s bigger neighbors, such as Seattle.

2. Palm Bay, Fla.

Median home price: $141,000

Projected gain by September 2012: 9.4 percent

This area was expected to become a popular retirement area but overbuilding caused prices of existing homes to sink 50 percent below replacement costs, Linda Schlitt Gonzalez, a Coldwell Banker broker, told CNNMoney.com. The city is expected to regain some of its growth, now becoming an affordable place for retirees to settle down.

3. Memphis

Median home price: $280,000

Projected gain by September 2012: 7.5 percent

Memphis has had a decrease in foreclosures and continues to add jobs, which are significant factors that are expected to help it climb into rebound mode. Plus, it has affordable housing: Homes can be purchased for $138,000, says John Gnuschke, director of the Sparks Bureau of Business and Economic Research at the University of Memphis.

4. Rochester, N.Y.

Median home price: $125,000

Projected gain by September 2012: 5.3 percent

Affordability ranks high here: The median home price in Rochester is $125,000, while the median family income is more than $64,000. Real estate prices remained low during the housing boom, and foreclosures aren’t an issue here: Rochester ranks 196th out of 206 housing markets for foreclosure filings, according to RealtyTrac.

5. Pittsburgh

Median home price: $133,000

Projected gain by September 2012: 4.6 percent

The Pittsburgh real estate market also remained relatively stable over the last few years with home prices having little fluctuation (it ranks 165th of 206 markets for foreclosure filings). Pittsburgh also has a low unemployment rate, and with a moderately high median family income of $62,400, homes are very affordable here.

6. Seattle

Median home price: $375,000

Projected gain by September 2012: 3.7 percent

Seattle is a hot-spot for well-paying jobs with Microsoft, Amazon, and Boeing, which is expected to help its recovery. Plus, the city has a limited housing supply because of it’s position between mountain and sea.

Find out what other metro areas made the list at CNNMoney.com.

Source: “Housing Markets: Best Recovery Bets,” CNNMoney.com (February 2011)

Real Estate Is 'as Afforadable as it Gets'

by Jodi Lemkemann, Keller Williams Premier Realty

Now is a good time to buy real estate, according to data from Moody’s Analytics. Home affordability has returned to pre-housing bubble levels or even fallen below the average in many U.S. markets.

In fact, housing affordability by the end of September had returned to or fallen below the average reached between 1989-2003 in 47 of the 74 housing markets that Moody Analytics tracked.

In September 2010, the ratio of home prices to annual household income had fallen to 1.6--below the historical average of 1.9 between 1989 and 2003. The ratio peaked in 2005 at 2.3.

"Based on incomes, this is as affordable as it gets," says Mark Zandi, chief economist at Moody's Analytics. "If you can get a loan, these are pretty good times to buy."

Some of the most undervalued markets include Cleveland, Detroit, Las Vegas, Atlanta, and Phoenix.

But those cities also are facing high rates of foreclosures and more borrowers defaulting on their mortgages that could decrease values further in those cities before they start to improve, Zandi says.

In Phoenix, for example, "it's become cheaper to buy than to rent,” Jon Mirmelli, a real estate investor in Scottsdale, Ariz., who rents out foreclosed homes, told The Wall Street Journal. "But the question is: can you qualify for a loan?"

Source: “Home Affordability Returns to Pre-Bubble Levels,” The Wall Street Journal Online (Feb. 8, 2011)

Displaying blog entries 161-170 of 578

Contact Information

Photo of Jodi Lemkemann & Laura Martin Real Estate
Jodi Lemkemann & Laura Martin
RE/MAX Unlimited
3622 North Knoxville Ave.
Peoria 61603
Direct: 309.687.4840
Mobile: 309.303.1000