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

Daily Real Estate News

December 10, 2010




5 Predictions for 2011

Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:



1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4 percent in 2011.



2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.



3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.



4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.



5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings — known as the "seriously delinquent rate" — generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.



Source: Freddie Mac (12/09/2010)

Why You Should Worry About Mortgage Fraud

By: MortgageLoan.com


The legal and financial ramifications and consequences of mortgage fraud are significant. This is true whether borrowers knowingly committed such fraud or not. Either way, borrowers are ultimately responsible for the personal data provided on their applications and legal documents.

The Mortgage Asset Research Institute (MARI) reported that incidents of mortgage fraud are at an all-time high, increasing 26 percent between 2007 and 2008. The number of new cases is expected to grow as the housing market to recovers from the distressing selloff that occurred during that time. So it should come as no surprise that federal and state governments have taken significant steps to drastically increase the legal punishments that can be handed out to fraudulent perpetrators.

Legal and financial liabilities

Consumers can get caught up in mortgage fraud in a variety of ways. They might misrepresent their income on a loan application or be asked to do so by an unscrupulous broker. They may be asked to stand in as a buyer for someone with bad credit. Persons in tight financial circumstances may fall victim to refinancing or loan modification frauds that leave them in worse shape than before.



What consumers should know is that the penalties for mortgage fraud are real, substantial, and commensurate with its costs. Depending on the specific fraud involved, mortgage fraud is a felony under federal and state laws. Stiff penalties against individuals involved in such schemes have been handed out in terms of millions of dollars in fees and lengthy jail times. Such penalties have been given to executives who securitized mortgage-backed investments, loan officers who helped originate individual loans and individuals who have either willingly, or without knowledge, engaged in mortgage fraud.

Aggressive actions

In the wake of a worsening economic crisis, the Federal Trade Commission (FTC), Congress and the states focused on taking an aggressive approach to protecting consumers in financial distress and increasing oversight and enforcement over providers of consumer financial services and assistance. Examples include mortgage fraud, foreclosure consulting, credit counseling, debt management, and debt settlement.



Testimony in Washington, D.C. has emphasized law enforcement and consumer education efforts aimed at addressing mortgage foreclosure rescue scams, debt relief and credit repair services, and unlawful debt collection. The Federal Trade Commission and other agencies have recommended new legislation and other remedies to enhance the effectiveness of mortgage fraud prevention efforts.

Accurate information a must

The bottom line is that each consumer is responsible for ensuring that the information he or she provides on any mortgage application is accurate. Lenders and brokers are also responsible for that same information. Penalties can and generally will be harsher if a fraudulent activity was undertaken willingly.

What really drives prices in Real Estate?

  Everyone knows that if you have a house in a great location, let's say on a pretty cul-de-sac with lots of trees and just a few neighbors in a town with a great school system and easy access to transit, then that house would be worth more than a house that backs up to the train tracks on a major street in the same town.  As you've probably heard that's the old maxim, location, location, location.

   So the second house would take longer to sell right?  Well, not necessarily.

   Real estate, like any other commodity is driven by consumer demand, in other words, the potential buyers are the one's who drive the prices.  We have recently seen the prices in the stock markets all over the world drop.  The simple reason is that more people are keeping their money in liquid assets; therefore, they are removing their money from less liquid markets and causing prices to drop.

   In any market, it is the buyer's who drive the prices, even in a seller's market.  So the best way to get the best price in a falling market, of any kind, is to price the commodity, i.e. your house, where the buyer's will feel that it has the best value.  So, if the house on the train track is priced where the buyer still feels that they are getting a good value, then it will sell before the house on the pretty cul-de-sac.

  Reprinted from Alberta Ceres-Buda's blog

Condominium vs. Landominium: What's the Difference?

Condominium versus Landominium: These two forms of ownership are often confusing, so what follows is a synopsis of the two.

A condominium is a creature of statute and what is and is not a condominium will be set forth int he legislation. However, a condo unit is normally a cube of air space (visualize this) bounded by the perimeter walls, floor, and ceiling of the unit described down to the undercoated surface of these boundaries (this is to  insure that the unit owner owns the first layer of paint and is thus responsible for the maintenance thereof). any part of the condo development that doesn't fall within the unit definition by statute is considered common elements or limited common elements. Common elements are owned in common by all of the unit owners, according to their respective percentage for ownership interest set forth in the condo documents (Declaration and Drawings). Limited common elements are those common elements outside the unit which can be utilized or accessed by only that unit, such as a balcony or patio.

A landominium, on the other hand, (by the way, there is no legal definition of this form of ownership and "landominium" is the commonly accepted phrase) is really a form of special zoning. Under this format, the owner is purchasing a parcel of ground on which the residence is constructed (ranch or townhouse) and the ownership includes the land, as well as the improvements to the exclusion of the other contiguous owners. Thus the landominium boundaries would be the lot up to the sky to infinity and downward tot he core of the earth. Unlike the condo's cube of airspace, the landominium maintenance and replacement of the building would be solely left to the owner, however, many associations provide that all exterior maintenance and landscaping, etc. is done by the association. the land outside of each individual lot is owned in common by all the owners, unlike he condo where the units compromise the entire ownership. For tax purposes, the only tax bills for a condo are the unit bills whereas, with a landominium, there are separate tax bills for each lot plus a bill for the common lot owned in common.     

Realty Times - Should You Move Up?

Realty Times - Should You Move Up?

This timely article from Realty Times reviews the pros and the cons.

By The Numbers

Reprinted from source

73% In a third quarter 2009 pricing survey by HomeGain, the percent of home sellers who believed their homes were worth more than their agents' recommended listing price, up from 69% in the second quarter.

$2,982 The average closing cost for Ohio, which ranked 9th in the country in 2009 according to Bankrate.com (rankings went from most expensive to least expensive). In 2008, Ohio ranked 12th. Researchers requested a good faith estimate for a $200,000 loan, assuming a 20$ down payment and  good credit. The most highly variable cost - taxes, other government fees and escrow fees - are not included in the figure.  

95% The percent of all agents who aren't happy with he production from their Web sites, according tot he National Association of Realtors.

27% A new Rasmussen Reports national telephone survey found this percent of homeowners who say the value of their home is likely to go up over the next year. Just 19% say the value of their home is likely to go down in the next year. Homeowners are slightly more optimistic about long-term values. 54% say the value of their home is likely to go up over the next five years, while 14% say their home's value will fall over the next five years and 255 think it will remain about the same.

90% According to a survey by the California REALTORS Association, the percent of home buyers who shop online first, and spend up to six weeks doing so before ever contacting a real estate professional. Only 13% of potential buyers say they read newspapers or magazine ads when searching for a home.

10% According to a recent report from social media service provider ViTrue, click through rates on Facebook are nearly this percent higher on Tuesdays than any other day of the week.

40% A study released by Pear Analytics revealed that more than this percent of all tweets are "pointless babble." Another study by The Conference Board and TNS said the top reasons for tweeting are to connect with friends (42%), update their status (29%), and to look for new (26%). They also use Twitter for work-related (22%) reasons. The study shows that 30% of users are tweeting to interact with family, 30% connect with celebrities and 24% interact with bloggers. 

LAND CONTRACT vs LEASE PURCHASE/OPTION

Reprinted with permission
Written by Terrance Monnie, Attorney

Agents and Clients,

The purpose of this memo is to discuss three very commonly utilized methods of dealing with the sale and purchase of real property.


Lease-Option: As the title implies, a property owner agrees to lease property to a tenant and that the tenant has the option (but is not required to exercise it) to purchase the property either during the lease term or at the end of the term. Ohio's Landlord Tenant Law (ORC 5321) applies. Most lease-options provide that the tenant may exercise the option only if they are not in default of the terms of the lease. This format favors the tenant, who may or may not exercise the option and doesn't give the owner much help other than the rent received, not does it achieve the goal of selling the property.

Lease-Purchase: Like the lease-option, the owner leases the property to the tenant; however, the tenant is obligated to purchase the property at the price and on the terms specified in the lease-purchase agreement. If the tenant defaults, the owner has various remedies ranging from eviction to forgiveness. Note that with both the lease-option and the lease-purchase formats, landlord-tenant laws apply. While both these methods have their merits, they lack overriding benefits of a land installment contract.

Land Installment: Contract: Land installment contracts are a creature of statute in that what is and is not land contract and its requirements are set forth in great detail in ORC 5313. What follows is a summary of the most important features:

• As the name implies, land or real estate property (normally 1-4 family residential) is being sold in installments for periods in excess of one year.
• Legal title remains vested in the seller until such time as the final payment is made on the land installment contract. This gives the seller the assurance that he has more control during this period and the buyer has ll other rights and obligations of ownership (benefits and burdens), including, but not limited to, maintenance, insurance, etc.
• Most sellers have an existing mortgage on the property being sold and most every mortgage in existence today for residential property is the standard FNMA/FHLMC )Fannie Mae/Freddie Mac) mortgage form. These mortgages have a "due on sale" provision which specifies that the owner/borrower may not covey any "beneficial ownership interest" in the mortgaged property without the prior written consent of the lender. This provision has a very broad range and almost every conveyance, except between husband and wife will normally trigger the "due on sale" clause, giving the lender the right to call the loan due (acceleration) in the event of such a sale (including a land installment contract). agents need to make this disclosure but I recommend that you retain legal counsel to assume this responsibility to avoid being charged with unlawful practice of law. From my perspective and experience, while the disclosure must be made, I tell my clients that their first course of action is to notify the lender of their intentions and get written approval from an authorized officer representing that lender as a precondition to avoid future problems and the triggering of the "due on sale clause."    
• What if the buyer defaults? Under the statute, land contract buyers who have either (1) paid more than 20% of the total purchase price or (2) have paid on the land installment contract for a period in excess of five years cannot be evicted but the land contract must be foreclosed like a standard mortgage. This is valuable protection for a buyer who may have accumulated substantial equity in a property.
• A buyer who has not done the foregoing and defaults is subject to being evicted as a tenant and all payments made under the land installment contract will then be construed as rent.
• Most land installment contracts provide that the buyer will make the payments of interest and principal at a rate agreed upon by the parties, and normally, the payments will equal or exceed the owner's own payments on the underlying first mortgage. Also, most sellers require that the buyer make additional payments for taxes and insurance rather than depending on the buyer to voluntarily make those payments which may pose a risk to the seller. It should be noted that sellers may wither (1) add the buyer to their existing homeowners insurance policy "as their interests may appear" or (2) have the buyers purchase a new policy again naming both seller and buyer "as insureds." This policy will ultimately end up int he hands of the lender who will require a copy and will be a tip-off that the property has been sold on a land installment contract basis.
• Ohio requires that ALL land installment contracts be recorded within twenty (20) days of their execution and this is very important protection for buyers who, without this recording, are subject to sellers encumbering the title to the property against their interest. this recording, as noted, will make the sale a matter of public record.
• Properly drafted land installment contracts will contain a provision, that while the seller may keep a mortgage on the property, the balance(s) may not exceed the balance owing on the land installment contract. Furthermore, buyers have the right to direct their payments to the mortgage holder int he event the seller fails to make the mortgage payments. It is important for the buyers to determine at the outset that the seller is current on the underlying mortgage obligation, as I have had two experiences int he past year where the seller took the buyers' land contract payments and never paid their lender, resulting in foreclosure. (This may be avoided by the buyers making the payment to the sellers' lender).
• Why I really like and recommend the land installment contract?
• Sellers can deduct the interest paid on the underlying mortgage(s)
• Buyers can deduct the interest paid on the land installment contract. **It should be noted that in many instances, sellers who sell their primary residence via land contract then have this former home re-characterized by the IRS as income or investment property. This should be the trigger for sellers to consult their tax counsel for the changes in how they prepare and file taxes. (Any interest sellers receive on a land contract payment will normally be treated as income but may be offset by any interest they pay on their loan... so, in many cases it results in no additional tax burden for sellers, but this varies from case to case.
• Lenders normally treat land contract buyers as owners when it comes time to refinance the land installment contract giving them more favorable rates and terms. Note that most lenders will require the land installment contract to be "seasoned" for varying periods from 6 months to a year or more.DO NOT get involved in any scheme to backdate this document as this constitutes fraud.
• Realtors can normally get paid their commission(s) from the initial closing of the land contract depending on the amount of monies pad down; however, this is a matter of negotiation between the various parties.
• Fees: Although fees can vary, I normally charge the following, depending on the location and whether it is unregistered or registered land with higher recording fees:
• Title Exam, document preparation and closing $350.00
• Recording fee: $85.00
• What information is needed:
• Contract to purchase: Simply prepare a standard contract (CABR has a contract checklist for land contract sale to assist in identifying necessary information) but in the financing section or Addendum, provide something like the following: "Seller agrees to provide financing in the form of a land installment contract with the following terms and conditions:"
• Sale price
• Down payment
• Interest rate
• First payment date
• Last payment date
• Monthly PI or PITI
• Other relevant information

The following information will also be needed:Sellers

• Sellers names as appear on the deed (copy of deed greatly appreciated) and mailing address for payments
• Purchasers' names and marital status, as well as contact information (email)
• Property address with zip code
• Name of mortgage lien holders and approximate loan balance(s).

Home Buying Trends in 2010: Smaller in Size, But Big on Amenities

'Thinking of selling? Understanding popular home buyer trends can help you showcase your home's most marketable features. 'Not selling? Staying abreast of homebuyer trends can still be a helpful in determining return on investment when making improvements to your home.

Home Buying Trends in 2010: Smaller in Size, But Big on Amenities

For more information on selling your home in today's market, contact Roger Morris with RE/MAX Preferred Group at 513.325.1056.  

Buyer Housing Incentives Still Remain!

The Federal Income Tax Credit for Homebuyers expired April 30, but there are still incentive programs that benefit homebuyers now. Click here to learn more about a variety of current programs!

Closing 101, Part 10 of 10: Common Title Problems

AN EDUCATIONAL INITIATIVE OF THE AMERICAN LAND TITLE ASSOCIATION

Here are three short stories on some common title problems:

Fraud & Forgery

(NAPS) — Those involved in real estate fraud and forgery can be clever and persistent, which can spell trouble for your home purchase. In a western state, an innocent buyer purchased an attractive home site through a realty company, accepting a notarized deed from the seller. Then another couple, the true owners of the property — who lived in another locale — suddenly appeared and initiated legal action to prove their interest in the real estate was valid. Under the Owner’s Title Insurance Policy of the innocent buyer, bought for a one-time fee at closing, the title company provided a money settlement to protect against financial loss. As it turned out, the forger spent time in advance at the local court house, searching the public records to locate property with out-of-town owners who had been in possession for an extended period of time. The individual involved then forged and recorded a deed to a fictitious person and assumed the identity of that person before listing the property for sale to an innocent purchaser, handling most contacts through an answering service. Also, the identity of the notary appearing on deeds was fictitious as well.

Fraud and forgery are examples of hidden title hazards that can remain undetected until after a closing despite the most careful precautions. Although emphasizing risk elimination, an Owner’s Policy protects you financially through negotiation by the insurer with third-parties, payment for defending against an attack on the title as insured, and payment of valid claims.

Conflicting Wills

(NAPS) — Conflicts over a will from a deceased former owner may suggest a study topic for law school. But the subject can take on a reality dimension and all too quickly your home ownership is at stake. After purchasing a residence, the new owner was startled when a brother of the seller claimed an ownership interest and sought a substantial amount of money as his share. It seemed that their late mother had given the house to the son making the challenge, who placed the deed in his drawer without recording it at the court house. Some 20 years later, after the death of the mother, the deed was discovered and then filed. Permission was granted in probate court to remove the property from the late mother’s estate, and the brother to whom the residence initially was given sold the house. But the other brother appealed the probate court decision, claiming their mother really did not intend to give the house to his sibling. Ultimately, the appeal was upheld and the new owner faced a significant financial loss. Since the new owner had acquired an Owner's Policy of Title Insurance upon purchasing the real estate, the title company paid the claim, along with an additional amount in legal fees incurred during the defense.

Missing Heirs

(NAPS) - When buying a home, it's important to remember what you don't know can cost you. A couple purchased a residence from a widow and her daughter, the only known heirs of the husband and father who died without leaving a will. Soon after the sale, a man appeared - claiming he was the son of the late owner by a former marriage. As it turned out, he indeed was the son of the deceased man. This legal heir disapproved of his father's remarriage and had vanished when the wedding took place. Nonetheless, the son was entitled to a share of the value of the home, which meant an expensive problem for the unwary couple purchasing the property. Although the absence of a will hindered discovery of the missing heir in a title search of the public records, an Owner's Policy of Title Insurance issued for a one-time fee at the time of the real estate transaction would have financially protected the couple from the claim by the missing heir. For a one-time charge at closing, an Owner's Policy will safeguard against problems including those even an exhaustive search will not reveal.

An Owner's Policy is necessary to fully protect a home buyer. Lender's title insurance, which is usually required by the mortgage lender, serves as protection only for the lending institution.