BEWARE OF SCAMMERS

Complements of

Roger Morris and Associates
RE/MAX Preferred Group
401 Crescent Ave.
Cincinnati, Oh. 45215
rmorris.remax@zoomtown.com
Rogers Cell: 513-325-1025
Rogers I-Fax: 513-842-7853
Web: www.mlscincyohio.com
Blog: http://greatercincyrealestate.blogspot.com/


Unable to make your mortgage payments?
Worried that you might face foreclosure?
Looking for legitimate advice and assistance?


                            
BEWARE OF:




DON’T BE MISLED. Scammers are targeting homeowners who are struggling because of unemployment, illness, injuries and excessive debts. These scammers cost consumers thousands of dollars and put them at further risk of losing their homes. According to the U.S. Department of Housing and Urban Development, these are the SIX RED FLAGS to indicate you’re dealing with a loan modification scammer.
                                               
                          
UPFRONT FEES – Advisers who seek payment in advance to work with your lender to address your mortgage issues usually just take your money, disappear, and do little or nothing to help save your home.

BOGUS GUARANTEES – Legitimate HUD-approved counselors promise only that they will try their very best to help you. No counselor has the power to modify your loan or stop the foreclosure.

REDIRECTED PAYMENTS – Make your mortgage payments only to your lender. Scammers often tell people to pay them instead. They simply take your money and put you even further behind.

MISLEADING DOCUMENTS – Know what you are signing before you sign it. If you’re pushed to sign something without reading it or understanding it, stop. If you sign, you could be giving away your home.

TMI (TOO MUCH INFORMATION) – Do not share financial information online or over the phone with unknown entities. Provide such data only to your lender or to a HUD-approved counseling agency.

"GOVERNMENT" TAG – Be cautious with anyone claiming to act for the government. To see if you qualify for the various available government programs, just ask your lender or a HUD-approved counselor.

IF YOU NEED HELP, CALL NOW!

Assistance Available in Hamilton County:
CCCS of The Midwest
Cincinnati Office
9545 Kenwood Road
Suite 204
Cincinnati, Ohio 45242
Phone: 513-366-4500
Working in Neighborhoods
1814 Dreman Avenue
Cincinnati, Ohio 45223
Phone: 513-541-4109
Housing Opportunities Made Equal
2400 Reading Road
Suite 118
Cincinnati, Ohio 45202
Phone: 513-721-4663

Publication created by Housing Opportunities Made Equal through a grant from the U.S. Department of Housing and Urban Development





Should I Buy A Home Now?

 Cincinnati Real Estate

By Phoebe Chongchua

The Zillow Home Value Index fell 26% since its peak in June 2006. That’s a greater decline than seen in the Depression-era years of 1928 to 1933.

According to Zillow.com, "November marked the 53rd consecutive month of home value declines, with the Zillow Home Value Index (ZHVI) falling 0.8% from October to November, and falling 5.1% year-over-year.”

But the news isn’t all bad. If you’ve gathered around the office water cooler to catch up with colleagues, maybe you’ve noticed a bit of optimism blossoming. it’s not just a feeling, it’s real. According to Zillow Research, the economy is improving. The improvement is expected to gradually increase "household formation and consumer confidence”. But the housing market may still face greater declines due to "excess inventory of homes, high negative equity and foreclosure rates, and weakened demand due to elevated unemployment,” reported Zillow.com.

However, if you’ve been watching, waiting, and wondering, when to buy ... . Now’s the time to take note. While no one has a crystal ball to predict what will happen with the housing market, some experts are reporting that an uptrend will occur later this year. They’re basing their beliefs on the job market (some predictions indicate it will improve half-way through this year), and "Homebuilder exchange traded funds are above their 200-day moving averages,” according to ETFTrends.com

If all these things have you confused, a simple way to look at real estate is to understand your specific needs, wants, and long-term goals. Do you need a place to live? Are you planning to stay in your home for at least a couple of years? (Most buyers live in their home on average seven years). Does owning your home matter? Have you saved money for a downpayment?

Answering these questions will help point you in the right direction. Assuming that buying a home is the best scenario for you, how can you rest easy that you’re getting the best price? Ah, the $64-million question. You can’t.

Timing the market is like trying to win the lottery. There is no absolute way to know when it’s the bottom of the real estate market. That’s why you must know your specific needs, wants, and long-term goals.

If your needs include a home to live in for a lengthy period of time, then homeownership will likely rank higher on your priority list. If building credit, potential of appreciation–yes, there is still appreciation–especially when you buy a sensibly priced home in a good location. However, the appreciation may be slower and not shoot up into the double digits that we saw in some areas.

Consider this, with high inventory, sellers are motivated. You can scoop up a home at a perfect price and you can minimize your potential for low appreciation. If you choose a home that is in the lower-tier of prices (and still within your target price), your home will be less vulnerable in down markets and better situated in up markets because the higher-priced homes help elevate your home’s value.

Homeownership has many benefits including tax deductions, the opportunity to make your own creative changes to your home, and the potential for income if you later rent it out.
Copyright © 2011 Realty Times. All Rights Reserved.



One more Advantage of a Land Contract

Written by;

Nicholas D. Perrino
Attorney at Law
Prodigy Title Agency

A Seller was thinking about entering into a Land Contract, but they were afraid they would have to do a Foreclosure Action if the Buyer defaulted on the payments. This scared him into wanting a lease instead.
 
I explained that a Land Contract can be like a Lease which allows an eviction or it can be like a sale and a loan, requiring a foreclose.

Whether the owner can evict or foreclose depends on either 1.) how long the buyer has been making payments or 2.) how much money the buyer has put down up to that date.

The rule is 5 years or 20%. Once a Buyer has made payments for 5 years or has paid 20% of the purchase price, then owner becomes a Lender. Until then, the owner is a Landlord.



Therefore, before the buyer has paid for five years, and before he has paid in at least 20% of the price, the owner can EVICT him if he breaches the contract.



After the buyer has paid for five years or more, OR has paid at least 20% of the price, the owner must file a FORECLOSURE ACTION upon a buyer default.



Land Contracts can have benefits over leases, so don't let the prospect of a foreclosure be the decision-maker.

Tips for Appraisals

Tuesday Feburary, 1/2011

Cincinnati Real Estate

Appraisals allow for homeowners and buyers to establish what is fair market value of a property. In addition, an appraisal allows a lender to know how much they can safely lend.


According to The Appraisal Institute, a global membership association of professional real estate appraisers, "Appraisals are especially important because they are an objective and unbiased source of information. Unlike others involved in real estate transactions, the appraiser is an independent professional who performs a service for a fee rather than for a commission."

This process, however, can be trying and even frustrating. Recent declines in the housing markets have spawned scapegoats across the industry, including appraisers. And increased caution from lenders has slowed the buying process.

"Too many consumers in this struggling real estate market face problems with appraisals when attempting to buy or sell a home," said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. "But rather than passively endure delays in closing a sale, homeowners and buyers can take proactive steps to avoid pitfalls."

To reduce your stress during this time, consider these simple tips from the AI®.

Understand the role of appraisals. It is neither in your interest nor the interest of your lender for you to purchase a property that is over-priced for its value.

Make sure the lender hires a qualified appraiser (such as a designated SRA, SRPA or MAI member of the Appraisal Institute). The lowest priced appraiser does not necessarily equate with the most qualified. This is a time to get the numbers right.

Accompany the appraiser during the inspection of the property if possible. The more active of a participant you are in the process, the more you will understand it, and be able to catch any errors.

Request a copy of the appraisal report from the lender. Federal law requires that you receive a copy of the appraisal within 30 days.

Examine the appraisal report and ask questions. Be sure to examine the report for errors. According to "Appraising the Appraisal: The Art of Appraisal Review," 2nd edition, common errors in appraisals include: misuse of adjustments to comparables, disregarding special financing and concessions, or miscalculation of gross living area.

Appeal the appraisal if appropriate. Market conditions do change, especially in these economic times. If you feel that new information may change the appraisal, be sure to contact them!

Ask the lender to order a second appraisal by a qualified and designated appraiser.

File legitimate complaints with appropriate state board or professional appraisal organizations.

For more information on appraisals, you may wish to visit The Appraisal Institute's website at www.appraisalinstitute.org.

Selling And Buying All At Once

Cincinnati Real Estate



For many people this can be a true nightmare but it doesn't have to be. And that's a good thing because a lot of people find themselves in the position of needing to sell and buy all at once.

If you're in this situation then you know that timing and money are two critical issues. What you do or don't do, can affect whether you have a successful sale and purchase of your next home.

Here are some important tips to expediting and effectively navigating the sell and buy process.

Collaboration. The real estate process is about collaboration and teamwork. When you begin the process, experts advise that you use a notebook to record your timeline of important dates such as when you absolutely must be relocated. For instance, if you're moving to another city for a job, when are you starting? When do you have to have the kids in school, etc? In this notebook, jot down details of conversations with experts and any transactions. Also, use the notebook to write down your questions that you have for your team of experts so that you're certain to get the answers you need.

Meet with your team which likely includes a real estate agent, lawyer, lender, inspector, appraiser, and advise them of your needs and time frame.

First things first–must sell that home. Many homeowners need the money from their homes in order to purchase their next one. With that in mind, be proactive. Get a home inspection so that you can find out any potential issues that will slow the sale process. Then repair or adjust your asking price before you list your home for sale.

Get your home on the market as soon as possible. Delaying listing your home will result in a shorter time-frame to get it sold.

When it comes time to sell, if you're not ready to move in to your next home, work with your agent to arrange a long close or a rent-back option. This will help to avoid the hassle of an interim move.

It's not always all about the price. When you're in a situation that has some very particular time constraints, you might find that it's not always all about the price. Prepare for the best possible offer by screening your potential buyers, make sure they're pre-approved “within five to 10 days of accepting their offer,” writes Lendingtree.com.

Sometimes a slightly lower offer may be the one that offers greater flexibility and just what you need when it comes to the closing schedule.

Get your buyer of your old home and the seller of your new one on the same page. Put in writing the specific window of dates. Lendingtree.com suggests, “negotiate financial penalties to encourage both stick to those dates.”

Know your price point. This is really important regardless of whether you're selling a home in order to buy another one. However, when you're in a time crunch, it's even more critical to know and shop for the home that's in your price range. And, of course, just like you're asking for with your buyers–get pre-approved.

Get an inspection and make sure the new home can be insured.

Having a buyers notebook where you can record all of your notes on your home search and jot down questions is an excellent tool to have handy when choosing which home you want to make an offer on.

Ultimately, selling and buying a home is a lot to handle but it can be a smooth transition. Be clear about your time frame, new home purchase price, and any other details that are specific to your needs

Written by Phoebe Chongchua

Cincinnati Real Estate

Good Looking Hood

By Richard Thompson

Homeowner Association

January 26, 2011



One of the advantages of a homeowner association is to keep the hood looking good by enforcing architectural and design standards. These appearance standards are designed to protect the HOA members' property values. The theory is that if all homes follow the same basic theme, the average home buyer will be willing to pay more.

Non-HOA subdivisions have appearance standards too, but only a civil lawsuit can stop someone determined to violate them. Since most neighbors hate confrontation, appearance standards usually go by the wayside opening the door to the things like RVs parked along side the house, tarped "classic" cars and eye wincing paint colors. Thus, the need for appearance standards and the enforcement thereof.

The governing documents usually outline the appearance standards when they are very strict but often say little when they're not. They may define the standards but not the enforcement method. leaving the Board in an awkward position when confronted with multiple appearance "challenges". This is a great topic for the Resolution Process. Resolutions are board policies that deal with complex issues like collection of money, pets, parking and appearance standards. Resolutions provide a framework to deal with them effectively. By the way, resolutions cannot amend or change the meaning of the governing documents, only expand on the authority. Amending the governing documents requires an appropriate vote of the homeowners.

After your Appearance Standards Resolution is drafted, ask your attorney to review it for compliance with statute and your governing documents. Then, allow the other owners to participate in the outcome. Once drafted, it should be circulated to all the owners for a 30 day review and comment period. The approval process shouldn't be rushed. Change is difficult for some.

A good way to broach the subject with the membership is to send out a newsletter discussing the reason why: to preserve property values. Consistent appearance standards are in everyone's best interests. Describe how, for example, junk vehicles, unkempt lawns, collapsing fences and weathered or outlandish paint colors drag property values down for everyone without naming names (Mrs. Lavendar Chartreuse, you know who you are). Encourage attendance to a special meeting to discuss the Appearance Standards Resolution.

After the new Appearance Standard Resolution is cussed, discussed, amended and approved, it's time to start enforcement. Select the closest equivalent you have to Henry Kissinger and a Mafia Hitman. If you have none of these, after appropriate written notifications, make good use of your attorney to turn up the heat. Never be guilty of selective enforcement. Treat everyone the same.

Appearances do count and it's up to the board to watch dog what happens in the community. Don't wake up one day and ask "Where am I and why am I in this handbasket?" Protect your HOA appearances by keeping the hood looking good.



For more innovative homeowner association management strategies, see Regenesis.net.

Copyright © 2011 Realty Times. All Rights Reserved.

What's Driving Buyers To Buy Homes?

By Phoebe Chongchua


January 21, 2011

The Wall Street Journal is reporting that “affordability” is the top reason for home buying in 2010.

That makes sense, especially in unstable market conditions. Buyers, as always, are looking for a bargain but, more than ever, they’ve been enticed by low home prices and low interest rates, according to a survey by Weicher Realtors, Inc.

The survey gathered information from 1,261 of the company’s customers who bought homes between July 1 through December 31, 2010.

What about pride in homeownership? it appears that buying a home because they didn’t want to rent, was not the driving force. Instead, it came down to price. This differs from survey results five years ago when respondents (26%) said, “the desire to own their home and stop paying rent” motivated them to buy, according to the Wall Street Journal.

Another influencer was the desire for more living space. According to the Wall Street Journal the survey reported that 28% of the respondents said, “ they bought a house because they wanted more living space or a larger property”. However, 11% of those surveyed said that “potential financial growth” motivated them to purchase a home. This response is similar to the answers received in the survey’s first year (2005) when respondents answered the question, “What motivated you to purchase your home at this time?”

A sharp drop (12%) was reported by respondents who said they bought a house in 2010 due to relocation. The figure was the same as 2009. However, it’s a decrease from 20% in 2008.

Real estate experts believe that buyers are still motivated by the potential financial growth, but indeed a good value in the form of low interest rate and discounted home prices is the driving force these days. So, if you are listing your home for sale, focus on value. Detailed marketing materials that showcase your home’s amenities, walking-distance retail outlets, and neighborhood parks and schools will also help create value.

Don’t underestimate the importance of valuable upgrades such as new appliances, water heater, solar panels, green technology, smart wiring for commonly used technology, and, of course, any energy-saving lighting and/or heating/air conditioning systems that you might have installed.

Light up your house as much as possible when showing or holding an open house. Even if you typically keep the shades drawn, open them up, turn on light fixtures and, if you have skylights, make sure they’re clean.

Value increases for buyers the more they can see themselves living in your home. So, make it cozy, comfortable, and attractive. In the bathrooms, hang color-coordinated towels; some fresh flowers in a vase. And if the walls are scuffed, try using a Magic Eraser. If that doesn't work, touch up the paint or paint the entire bathroom.

In the dining room or the kitchen, set the table. But don’t overdress the table. Too much stuff on a table makes it look crowded, small, and can be a turn-off.

Remember, selling your home is about creating value for buyers. That means how you live in your home may not be the way you show your home. You may have to put away a lot of the clutter such as trinkets, family photos, pet toys, electrical cords, kids’ toys, and anything else that is personal to you. By doing this you’ll create a greater chance of buyers viewing your home as theirs. And that's value.

Copyright © 2011 Realty Times. All Rights Reserved.

Consequences of Defaults and Foreclosures

by Carla Hill




The economy has put a strain on thousands of households across the nation. In these tough times, many homeowners are struggling in the face of foreclosure. What are the consequences of defaulting on your loan? And what can you do to prevent this loss?

One of the most startling impacts of a foreclosure appears on one's credit report. Your credit score may plummet by 200 to 300 points. In this economic climate, where credit lending standards are already tightened, you may then find it difficult to do everything from buying a car to renting an apartment. What's worse is that the notation of foreclosure stays on your report for up to seven years.

Next, you may owe the lender money. They backed a loan on a home worth X amount. If they sell your home at foreclosure for less than that amount, you may be responsible for the difference. Many states have laws protecting you against this action, but speak with an attorney to find out for what you may be liable.

Lately, after the sudden drop in property values in certain markets, investors have been guilty of strategic defaults. This is when an investor purposely defaults on a property, because the time it will take for them to recoup their money is perceived as too great. A word to the wise: courts are now ordering deficiency judgements in some cases, where the investor must pay the lender back their losses.

There really is no winner in a foreclosure. With homeownership comes increased family stability. The loss of a home can be a trying time on all members of the family. Beyond your own family, a foreclosure can mean lowered property values for your entire neighborhood.

Avoiding default and foreclosure is not always possible. If you are not able to make your payments, be sure to be honest with your lender. They may be able to present you with an alternative. In addition, here are a few tips to get you thinking.

1. Short Sale. A short sale occurs when a borrower is unable to pay their mortgage loan. Both the homeowner and lender consent to a short sale, which means selling the home at a moderate loss, avoiding foreclosure and its associated frees and havoc on credit reports.

2. Talk to your lender. They may be able to offer you programs, refinancing, or counseling that can help you avoid losing your home. Most banks don't want you to foreclose, as it would mean they take a loss.

3. Selling if not underwater. If you are not underwater on your home loan, meaning you don't owe more than you can sell for and owe, then now is the time to employ a real estate agent and get your home sold. Downsizing or even renting is a better option than ruining your credit for the next seven years.

4. Budgeting. There are non-necessities that can be cut out of your expenses. Cut down and live as simply as possibly. You may have more money than you realized!

5. Financial counseling. Defaulting is serious business. You would be wise to meet with a financial counselor to see if they can help you avoid losing your home.

6. Refinancing or loan modification. Your bank or lender may be willing to allow you to refinance. This can translate into lower monthly payments.

The bottom line is this. Defaulting on your mortgage has severe consequences. Try your best to balance finances before your mortgage becomes an issue. And be honest and upfront with your lender in the event that a default is likely.

Buyers are hit hard by first impressions, and sellers take advantage of this fact, aiming to amp up their curb appeal.

Curb Appeal Projects Remain Cost-Effective

by Carla Hill

This is, after all, where they get the most bang for their buck. According to the latest Remodeling Cost vs. Value Report, the National Association of REALTORS® (NAR) reports that "nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects." These exterior projects are outperforming their remodeling counterparts.


Interior projects should not be forgotten, however. These spaces earn returns on costs, as well. Many times interior updates can make you stand out from the competition in your area. It is simply that in today's economy, "remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions." (NAR)

With curb appeal projects, however, a little money can go a long way. Topping the list? Steel entry doors are returning 102.1 percent of their cost upon resale.

What other projects are sellers tackling? While most projects don't bring the profit returns of steel entry doors, sellers have some other great options for attracting buyers.

• Siding and window replacements - 70 or more percent of costs recouped

• Midrange garage door replacement - 83.9 percent of costs recouped

• Upscale fiber-cement siding replacement - 80 percent of cost recouped

• Wood deck additions - 72.8 percent of costs recouped

“It’s important to remember that the resale value of a particular improvement project depends on several factors,” says National Association of Realtors® President Ron Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value."

Yet, says Phipps, "Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership."

Published: December 21, 2010

Could rising mortgage rates spur housing

Mortgage rates have been rising ever since November 2010, when lows of 4.42% were reported. Bankrate.com recently reported a rise to 5.02% in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5% mark--many experts say signaling the end to the 4% mortgage rate era.


Forecasters predict mortgage rates to hover in the 5-6% range in 2011.Yet, some industry experts say the rise in mortgage rates may stimulate a sluggish housing market.

The rising rates create an urgency for potential buyers. They'll have more incentive to buy soon before mortgage rates go any higher. After all, higher interest rates mean buyers will pay more for their mortgages.

Greg McBride, chief economist at Bankrate.com, told CNNMoney.com that when rates rise 4.25% to 5%, it takes away 9% of the purchasing power of buyers.

Lawrence Yun, chief economist of the National Association of REALTORS, doesn't foresee a moderate hike in mortgage rates as a negative for the industry. Instead, he says the real mortgage challenge is getting lenders to approve creditworthy buyers for a loan.

"It's less about rates than it is about underwriting standards...If lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy," Yun said.

Source: NAR