Connect2Agent - Home Buyers and Sellers

Fair housing is like poetry in motion

Every day should be fair housing day. But as this month has officially been designated to recognize initiatives and efforts toward equality in housing, it has also been deemed Fair Housing Month. Through this we can build awareness of the inequalities that exist today, push toward the future and strive to better the public and its professionals through education.

I want to draw attention to a video I found on YouTube. It is from an annual Poetry Slam event sponsored by the Fair Housing Partnership, titled, "Ending Segregation: Just Say the Word." The April 2007 winner, Vanessa German, raps about inequality and how it breeds a feeling of unworthiness.

A homestead declaration could save your house from creditors

If you are a homeowner looking for a way to protect your house by keeping creditors at bay, you might want to check into a homestead declaration.

A homestead declaration is a document that protects the equity in your house up to a certain amount, which varies from state to state. It also protects your house from being sold to pay off a lien filed against the property if you have less equity in the house than the lien or judgement.

This document can only be filed on your primary residence and needs to be filed prior to the incident occuring in order for the protection to be valid. Taxes, first or second mortgages, mechanic's liens and liens that are the result of covenants, conditions and restrictions on your property do not fall under the protection of a homestead declaration.

You can file a homestead declaration yourself by completing a form and having your signature witnessed in front of a notary. Then you will need to take the declaration to the county recorder's office to have the document filed properly. If you are just purchasing your house, you can choose to file a homestead declaration once you have closed escrow on the house and are the title holder of record.

Please note that homestead declaration laws vary from state to state. Connect2Agent offers this post as advice about your options in homeownership protection, but does not hold a license to practice law, nor does it profess to dispense legal advice.

As with all things legal, the best source to consult if you are considering a homestead declaration is an attorney. Your best option is an attorney who specializes in real estate or whose practice deals solely in real estate law.

If you enjoyed this post, you may want to read:

• Connect2Agent takes a look at foreclosures
• Understanding the basics of short sales
• Homeowners: How to detect foreclosure scams

Subscribe in a reader    OR    Subscribe to Connect2Agent - Home Buyers and Sellers by Email

Posted by Rebecca D. Levinson

Real estate trendspot: Connect2Agent discusses new foreclosure services

When the going gets tough, these companies are hoping the tough head to their websites for help. The two companies I am referring to are trying to inch their services into the crowded and cumbersome foreclosure process.

You Walk Away and Walk Away Plan claim to offer services that streamline the decision process for a homeowner on whether they should walk away from their house or continue to hang on. Here's a look at each of these companies.

Walk Away Plan tries to take the guesswork out of accepting a foreclosure or staying in your house. The folks at this company are selling a trademarked plan to consumers that provides them with information on how long they can stay in their house without paying their mortgage and what kind of recourse the lender can have against the homeowner. It even states that consumers who use the Walk Away Plan will be able to purchase a house again in as little as two years.

These are some pretty hefty claims for homeowners who walk away from the recorded interest and liability. The site even goes through a set of moral questions with a homeowner who might feel guilty walking away from the debt they owe. In chatting on the website with a live operator, I was able to get the cost for the service--$495--and it was explained that there are no other fees involved. The site offers a money-back guarantee if you do not receive your report within seven business days. All refunds must be requested in writing to an address in Arizona.

Does Washington DC finally have affordable housing? Real estate agent Natalie Dean breaks it down

At Connect2Agent we are lucky enough to partner with real estate professionals across the country who can share their local real estate news and advice. Natalie Dean, a Connect2Agent member and real estate agent in the Washington DC area, breaks down the current housing situation and opportunities for real estate buyers who are considering whether they should purchase. Following is her guest contribution to the Connect2Agent Home Buyers and Sellers blog.

"Does Washington finally have affordable housing?"

This economy continues to spiral out of control. Other stock market giants buy huge static corporations like Bear Stearns and a record number of bankruptcies of small- and medium-sized businesses are being filed. Consumer debt and spending has reached well into the billion-dollar mark and the resounding woes of the housing crisis continue to flood the airways--it is easy to become overwhelmed.

No need to despair, there are options for real estate buyers

However, there is light hovering at the end of the tunnel. In the Washington area, one of the wealthiest in the nation, housing prices--although not plummeting--have stabilized, allowing many renters to cash in as first-time home buyers.

The correction of the real estate market has led to a series of wonderful changes allowing for affordable housing in Washington DC. FHA loan limits have risen from their traditional $362,000 to well over $729,750 in high-cost areas. Homeowners are now allowed to receive 6% closing help through the assistance of Ameridream and other seller downpayment assistance programs.

Fannie Mae and Freddie Mac, the institutions utilized to back conventional mortgages, raised conventional conforming loan limits and houses are in much better condition than in times past, with homeowners willing to do any and all necessary repairs (cosmetic and noncosmetic) in order to attract area buyers.

Foreclosures are on the rise and not are just for the savvy investor, but are popping up all over our Multiple Listing Service, giving homeowners in the Washington DC area an edge in getting a bargain in the market.

This is a good time to purchase real estate.

Understanding the basics of short sales

If you are looking for an alternative to bankruptcy or a foreclosure and feeling like the walls are closing in on your options, you may want to consider a short sale. A short sale is when you accept an offer to purchase that is less than what you owe on your property. Your mortgage company would then have to accept less than what they are owed in order for the house sale to go through. 

Documentation is key

In a short sale, your mortgage company will require documentation from you throughout the process before it approves the lower amount. A few common items most mortgage companies will require during this process are:

• A copy of the buyer's offer to purchase on the real estate property--This is the final offer that you and the real estate buyer have accepted.
• An appraisal--You can submit yours. The mortgage company will also have an appraisal done on your house.
• An estimate of the proceeds on the sale of your house--Normally, your real estate agent will submit this with the accepted offer to purchase on your property. Later, the mortgage company will want a copy of the closing statement your attorney will prepare for the HUD-I settlement statement.
• A statement of your finances--The mortgage company will want to know why you are no longer able to make your payments. They will also want to know why you cannot make up the difference between what you owe on your house to the mortgage company and what you are selling it for.

Five topics to cover before you choose your real estate agent

If you are preparing to put up your house for sale on the real estate market and you are now interviewing real estate agents, your questions probably go a little something like this:

1. How many years have you been selling real estate full-time?
2. How many houses have you sold during the past two years?
3. How much money do you think I can get for my house?

These questions should not be dismissed, but before you hang your hat on the answers, you also need to get down to the details. The following probing questions will help you do just that.

Your real estate dream can become your reality

I was thinking last night about the first time I bought a house. Maybe it was because on one of the real estate forums I was browsing, I stumbled across a remark that made my bleary eyes blink at midnight,

"Please convince me to buy a house"

It made me take a trip down memory lane to my first home buying experience. I was 22 years old and had been renting a townhome from the real estate attorney I worked for. My fiance and I were looking for room to grow and he was feeling the pains of non-homeownership kick in. If you have ever rented, you know what I mean: "Why am I paying someone else instead of paying myself?", "If I do any home improvements, the rewards are going to go in my landlord's pocket and not mine", "Working nine to five for zero return isn't all it's cracked up to be.", etc. 

Are you feeling me?

Not all real estate buyers are benchwarmers

Most of the conversation surrounding real estate these days involves the increase in foreclosures and REOs during the past two years in some markets. Real estate agents say buyers are sitting on the fence, waiting for the bottom of the market to drop out. 

Real estate buyers say they are too anxious to buy, or they don't have the same access to finances that was once available. Gone are the days of interest-only loans, 100% financing and no-documentation options.

So what's the story? Are real estate consumers sitting it out because they are waiting to find the bottom so they can swoop up a good deal? Do first-time home buyers wait because they just don't have the cash to cover the downpayment and have reserves, let alone a minimum 575 credit that some of the big guys, like Fannie Mae, are looking for? 

Or is it a matter of buying into a house at the wrong time? The fear of losing their shirts on an investment that might depreciate before the final signature on the closing papers has been signed?

How to achieve the goal of homeownership

Are you renting right now? Are you a homeowner who is considering the next step up to a bigger house? What is stopping you from purchasing a house in your local real estate market?

If you answered yes to any of the above questions, you are not unlike many Americans today. One of the frequent topics I see on forums and blog posts is, "Is it the right time to buy a house?" I wonder how this question can have one answer on a national level. The truth is, homeownership is an individual goal. The decision to move forward and purchase a house can only be made based on your needs and wants. 

Once you have committed yourself to a goal of homeownership, the next step is to move toward--not away from--your goal. Here are some steps to get you moving toward homeownership:

1. Know where you stand with your credit. In order to get a home loan, you need to be credit-worthy.  Some institutions, like Fannie Mae, will not consider an applicant who has less than a 575 FICO score.  The Fair Credit Reporting Act allows a consumer to obtain a copy of his credit report every 12 months for free. A central website has been set up to allow you to obtain instant access to your credit report online, by filling out a form.

Transparency coming to a neighborhood near you

The Internet used to be a highway of one-way information. Now, it allows everyone to talk back. Along with this open format comes a certain lack of privacy, in the form of an Internet bird known as Street View.

Google Maps' Street View allows real estate buyers to stroll through listings they are interested in and check out not only the house, but the community as well. This view, while adding another dimension to an Internet home buyer's experience, removes a layer of privacy for unsuspecting neighbors.

These street views are now being added to the popular website Trulia's real estate listings. They are also being showcased on the blog StreetView Fun, which is dedicated to posting quirky findings from Street View and encourages its readers to post there too.