Pennsylvania Real Estate News, Views and Rants : Credit

Are YOU Ready to Buy in Today's Market??

John Rainville — Fri, 05 Oct 2012 20:55:00 GMT

By using a mortgage-qualifying calculator (mortgage-info.com), find out how much house you can afford. You typically will need a down payment of at least 20 percent, plus another 6 percent for closing costs, lawyers’ fees, etc.

When you put less than 20% down, you have to pay for some kind of insurance to protect the lender from the higher risk that you may default. With FHA loans, mortgage insurance is built into the payment. With conventional mortgages, you will have to buy private mortgage insurance, but some private mortgage insurers are not willing to do business.

With credit issues and foreclosures running rampant, you should maintain a credit score of 760 or more. It is the minimum you need for a mortgage with the best interest rate. For free credit scores, try quizzle.com or creditkarma.com; see your credit report at annualcreditreport.com.

All financial experts agree that the important message for all home-buyers is that “you can’t afford not to save.” If you have nine months of expenses in the bank to protect yourself in case of job loss or disability, then purchasing a home will be worry-free for you and your family.

How long will you be in your home? If you will not have to move in the next five to seven years for work or any other reason, then you are ready to buy. Make sure you think through career change possibilities, whether you will be moving when you are done with school, or whether additions to your household will necessitate an upgrade soon.

If you move too soon, the costs you pay up front could result in a not-worth-it situation. If you are prepared to maintain the house in terms of time, labor, and expense and are able to set aside 1 to 2 percent of its value per year for upkeep, as well as emergency repairs or upgrades, then you are ready for home ownership.

Knowing the loan approval process can take weeks–if not months–to be completed will certainly test your desire to own a home. If you are on a tight deadline or looking to avoid any hang-ups, have all the necessary documents ready and completed. Having all of the paperwork in advance will ensure there are no delays which can be costly.

You should not assume a mortgage broker or lender will find or create the ideal loan for their financial situation. Mortgage brokers and loan officers will typically look at the usual programs available. You need to know what your goals are and all of your financing options with your lender or broker.

Are you prepared for additional costs? Understand all the fees that are included, what will be due at closing, or before closing, and the payment and amortization schedule. Sometimes there are fees that may come as a surprise to you. Lenders are required to provide borrowers with a “Good Faith Estimate” which lists the anticipated costs for the loan.

However, sometimes fees and other costs become an issue and inflate the total loan cost. You should compare costs with several lenders because the processing charge for collecting and packaging the loan information can cost between $500 and $1,000, while the underwriting fee can hit $800 to $1,500. Remember, though, the origination fees, application fees and the underwriting fees can be negotiated.

Do you have a stable budget? Is your income stable enough to make regular mortgage payments? Make sure that you can keep up with your payments, and that the reliable portion income can handle your mortgage. Do a mock budget with home ownership that includes estimated taxes, HOA fees, maintenance costs, utilities, repairs and other expenses on top of your monthly principal and interest payment.

Low Down Payment Home Mortgages - Is One Right for You?

John Rainville — Mon, 23 Apr 2012 21:32:00 GMT

With so many other costs associated with a buying a home, it’s no surprise that a lot of people are looking to have low down payment on their home loan.

A common belief is that there needs to be down payment of 20% at the minimum. This was the standard for a long time; however, now, more flexible options are available.

As a matter of fact, there are loan programs with a down payment of 3.5% of the property’s price. A low down payment loan is generally a loan that has a down payment of less than 20%.

However, low down payment loans come with certain conditions. For example a lot of lenders normally require that the loan be insured in some manner. This type of insurance is known as mortgage insurance.

Mortgage Insurance – Mortgage insurance provides financial protection to the party doing the lending in event that the borrower defaults on the mortgage. Lenders normally ask home buyers to have mortgage insurance on any loan that has a down payment of 20% or less. So the borrower almost always has to have some type of mortgage insurance to get a low down payment loan. The borrower normally has to bear the cost of the insurance. There are two types of mortgage insurance – government and private. Here are some details of both of these options.

Government Mortgage Insurance – This type of mortgage is normally insured by one of the following federal authorities: the Federal Housing Administration (FHA); the Rural Housing Service (RHS) of the Department f Agriculture; or the Department of Veterans Affairs (VA). Each agency has its own standards for insuring loans. For example, RHS normally provides loans to people living in the rural areas, and VA loans are reserved for military veterans and their spouses.

To get insured by the FHA, there should be a down payment of at least 3%. They also consider your geographic area when deciding the amount of the loan. This is how you can obtain government mortgage insurance for purchasing a house with a low down payment. By getting one of the above-mentioned federal organizations to back your loan, you can have a down payment of less than 20%.

Private Mortgage Insurance – Private mortgage insurance, or PMI, can also enable you to get a home loan with a low down payment. This type of insurance is on offer to a much greater number of people compared to the government mortgage insurances mentioned above. For instance, the availability is not limited to rural residents or the military.

PMI is on offer for a lot of different low down payment mortgages. There is also no pre-set limit on the amount. These days, you can definitely find a home loan with a low down payment – payment of less than 20%. With this type of loan, you will need to have mortgage insurance, provided either by the government or a private insurer.

Is it time to downsize?

John Rainville — Tue, 06 Mar 2012 19:19:00 GMT

In a country that seems to be enthralled with “bigger is better” and “super-sizing” everything you would think that we would be leaning in the same direction when it comes to homes.While we most people are buying bigger TVs, they’re putting them in smaller homes more and more often.

Many of the baby-boomers are finding that less is best and double income families are finding that being closer isn’t necessarily a bad thing. But in a world where most trends are to get bigger and better why would we start downsizing when it comes to our homes? It all comes down to common sense and economy.

Who’s Downsizing?

For baby boomers they’re finding that, like most retirees, the homes they once felt they needed to hold three kids and family gatherings are now just too big to take care of. As our population ages their needs are changing and they find that spending less on housing is a positive thing; especially when on fixed incomes. They’d rather be out golfing or vacationing instead of worrying about keeping up an oversized house that no longer serves their purpose.

While you would think most families would be moving into bigger places, often the exact opposite is true. Many families are finding that kids can live just fine sharing bedrooms and not having huge family rooms to be entertained in. Instead, with both parents working and kids running after school & weekends families are finding that they really want less to take care of when it comes to being at home. Other times families decide to downsize their home to make life more affordable on one income; allowing one spouse to stay home and raise the children.

Why Downsize?

While there will always be a need for big houses, many are downsizing for different reasons. Some downsize for cost efficiencies while other for ease of care. So what are the pros of downsizing your home?

Less cleaning and maintenance is needed with smaller homes and smaller rooms. Having fewer rooms to keep clean and maintained means giving families more free time to do things they enjoy doing; especially when both partners are working while kids are involved in various social and sporting events. Huge homes can overwhelm a family when they’re spending less and less time at home and more time out having fun and enjoying extracurricular activities. Coming home to a house that needs vacuumed, dusted, and picked up isn’t fun for anyone but it’s a lot less fun if you have a huge house to contend with.
Smaller homes generally mean smaller mortgages. If you’re trying to pinch pennies and stay afloat in today’s economy a smaller mortgage is definitely a positive thing. You seem to miss that extra “sitting room” and spare bedroom a whole lot less when you sit down each month and write out that mortgage payment. With aging baby boomers they are finding they need to free more money up for necessities in life such as medications and medical bills. They want to have access to more funds to enjoy life and not to be stuck inside the walls of a huge showcase home. Vacations are more appealing than a huge home filled with empty rooms of furniture that go unused.
Utility bills are often reduced when you downsize your home. Common sense tells us it’s generally less expensive to air condition and heat a smaller house than a big oversized home. In today’s economy everybody is trying to save money and smaller utility bills make everyone happier.
Less money spent on decorating and collecting. When people live in smaller areas they tend to buy less “stuff” to collect and decorate with. With fewer spaces to store things it becomes easier to stop buying more Christmas decorations because you have less space to store it out of season.
Less clutter is a definite benefit of a smaller home. When you’re packing to move from a larger home to a smaller one you’re going to find yourself de-cluttering almost every room. That huge ceiling to floor bookcase you had filled with books won’t have a place in your smaller home so you will most likely start giving them away or donating them or finding a way to store them in basements or attics. Soon you’ll realize that those can be removed from there and are serving no real purpose and next thing you know you’ll end up with less and less clutter.

Other Benefits of Downsizing

Many who choose to downsize also choose which one or two rooms they are willing to spend more on; for example a gourmet kitchen. When you have less room to work with you find that the rooms you do have are given more attention and are created to serve the purpose of your entire household in a more streamlined and better way.
Often those who downsize and already have a home are going to make a substantial amount of money if they’ve lived in their home for a lengthy period of time. The equity they’ve made or perhaps even paid off a mortgage will be money in their pocket when they have to use a portion of the funds to buy their new smaller, cozier house.

So should you downsize by buying a home and then selling yours or should you sell your home first and then downsize? Be informed. The best person to answer that question is your agent. Your agent knows the market, especially for your particular area, and can advise you which direction you should go when downsizing. They can guide you so your move goes smoothly and as perfect as possible. Each locale and each situation is different; so what may be a good time for one person or family to sell may be a “not so good” time for someone else. Talk it out and make that decision as a well-informed consumer.

When is the Right Time to Buy a Home?

John Rainville — Mon, 27 Feb 2012 21:32:00 GMT

If you’ve been looking to buy a home for some time now, chances are you know that 2012 is sure to be the year of the buyer’s market.

Many experts expect the economy to rebound and have a respective effect on the housing industry.

That’s why so many real estate agents say now is a great time to buy a home, if you have the money or are looking to invest at a great price, while the market is down.

While it’s obviously important to keep your finances and budget in focus and know what is affordable and attainable for you in the moment while considering your options, it’s also important to consider what you truly want, depending on who else is involved.

What can you compromise on? Where you do want to live – the city or the suburbs? Is there any possibility of you moving again in the future, or owning more than one home? Do you have children, or are there potential children coming in the future? What kind of amenities do you want to be located near?

It’s essential to determine what’s important to you, and anyone who may be affected by your decision, so that you can come to a decision that pleases all parties involved. While it may sound like it could require soul-searching, often the answers become quite clear after some discussions.

Once you’ve figured out what it is you truly desire in a home, you need to be realistic with your budget and what you can afford at the time. Your budget helps you narrow down what area you can live in, what kind of mortgage payments you’re comfortable with, and what interest rate you can live with. There are a lot of things you need to consider before making this kind of investment, and one financial mistake can lead to something you could end up paying for the rest of your life.

You’ll also want to devote time to researching various communities you have your eyes on – this way, you can price shop and see what some homes are currently selling for, what kind of public services you’ll be taxed for, and more. You can also see what schools, public transit systems, and other amenities are in these neighborhoods, and compare them to others nearby.

When you’re looking to find the perfect home or piece of property, whether it’s an investment or a home you intend to make a life for you and your family in, there’s no step more crucial than choosing the ideal real estate agent for your budget and situation. A great real estate agent can help you every step of the way to find and secure your dream home at a price you’re sure to love, while keeping your budget in mind.

A real estate agent is sure to make things dramatically easier and a great deal less stressful for you during the entire process – that’s what they’re there for. Buying a home is a life-changing decision, and you want to make a calculated, educated decision about the home you’ll be living in with your family.

All Lenders Are NOT Created Equal

John Rainville — Sat, 25 Feb 2012 15:05:00 GMT

While the majority of mortgage lenders do follow a set of rules, guidelines, and most importantly laws regarding how they do business you have to realize that like any business you can always expect to find those who aren’t trustworthy.

Lenders who do operate within the laws and guidelines of their state and federal laws are generally well known.

One good reason to utilize a Buyer’s Agent is for this exact reason; they know who the lenders are that can be trusted and whom you can qualify for according to the current situation. Attempting to do the entire process on your own, from finding to buying your perfect home to finding the right lender is simply not recommended. Utilize the talents of a Buyer’s Agent.

You have to be extremely cautious of what are often referred to as “Predatory Lenders”. These lenders are very unethical, often stretch the envelope of “being within the law” and usually come into a town and disappear suddenly; although not always. Some signs that a lender may not be quite as ethical or of character are things like getting phone calls from them in a telemarketing fashion; explaining how you have prequalified for a mortgage for up to some large amount.

Others send direct mail to you with the same offers, guaranteeing you low, low, mortgage rates at small amounts per month on huge amounts of money. Another technique these predatory lenders utilize is having flyers around; everywhere from on your door to on your car window. If any of these techniques are used it’s a pretty good sign that they aren’t a very legitimate lending company and you could find yourself in trouble working with these type of people.

Most of these predatory lenders are easy to spot but sometimes they’re so good at what they do that you can be lured in before you know it. Here are a few things to watch for when you’re speaking to a lending company representative:

High Pressure Sales Techniques.
Interest Rates and Fees Seem Extremely High yet the payments seem extremely low during your original “work ups” on the numbers.
Their Representative comes off like a used car salesman; smooth talking and a fast talker with a pushy attitude.
They assure you that your credit rating doesn’t matter and isn’t a problem – all lenders base their rates, fees, and ability to lend you money on your credit record. If your credit is poor then you will end up paying higher rates, even if their representative claims it’s no problem.
If the mortgage representative helps you fill out your forms and encourages you to misrepresent anything; especially if they claim it’s okay and everybody does it. Take their word on it and you are committing fraud which is against the law.
You get a Good Faith Estimate that, when it comes time to signing the final papers, nothing is matching the numbers they gave you. In most cases your interest rates, fees, and charges will all be different.
You have a gut feeling that things aren’t exactly right with this firm or person. Again, trust that gut feeling you get because it’s usually right.
You’ve gone through tons of mortgage applications and nobody approves you except these guys. They use lines like “we understand your situation” and “your credit score doesn’t matter as long as you can make the payments” to make it seem like they’re on your side.
You don’t feel comfortable with the final per month payments they’ve come up with in the end but they assure you that you’ll be fine because they’ve seen the numbers and you should be able to do this easily.
The representative shies away from questions or explaining things to you, including your FICO Score. Your FICO Score is one of the most important pieces of pulling your mortgage and rates together and if they want to constantly ignore it or not explain it to you, be concerned.

What it all comes down to is that, especially if you decide to shop around for a lender on your own, not all lenders are equal. There is some truth that lenders have a certain ratio they maintain in what they lend out to what they have coming in so you will find certain times when lenders are less willing to lend to you while another lender is less hesitant.

There’ve been instances where people with nearly impeccable credit scores have been turned down and, although they don’t say so, it’s all because the lender simply doesn’t have the money at the time to lend. As crazy as that sounds it happens because they have certain ratios they must maintain.

What it ultimately comes down to is feeling good about what you decide upon and end up with for monthly payments. To be assured that you’re dealing with a legitimate lender, utilize the knowledge of a Buyer’s Agent and play it safe. In the end, it’s all worth it.

Banks Paying Homeowners Up To $35,000 To Avoid Foreclosure! Call me to discuss your options! John Rainville (717) 554-7430

John Rainville — Thu, 16 Feb 2012 18:49:00 GMT

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Banks Paying Homeowners to Avoid Foreclosures

By Prashant Gopal - Feb 7, 2012

Banks, accelerating efforts to movetroubled mortgages off their books, are offering as much as $35,000 or more in cash to delinquent homeowners to sell their properties for less than they owe.

Lenders have routinely delayed or blocked such transactions, known as short sales, in which they accept less from a buyer than the seller’s outstanding loan. Now banks have decided the deals are faster and less costly than foreclosures, which have slowed in response to regulatory probes of abusive practices. Banks are nudging potential sellers by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing large cash incentives, said Bill Fricke, senior credit officer for Moody’s Investors Service in New York.

Losses for lenders are about 15 percent lower on the sales than on foreclosures, which can take years to complete while taxes and legal, maintenance and other costs accumulate, according to Moody’s. The deals accounted for 33 percent of financially distressed transactions in November, up from 24 percent a year earlier, said CoreLogic Inc., a Santa Ana, California-based real estate information company.

Karen Farley hadn’t made a mortgage payment in a year when she got what looked like a form letter from her lender.

“You could sell your home, owe nothing more on your mortgage and get $30,000,” JPMorgan Chase & Co. (JPM) said in the Aug. 17 letter obtained by Bloomberg News.

$200,000 Short

Farley, whose home construction lending business dried up after the housing crash, said the New York-based bank agreed to let her sell her San Marcos, California, home for $592,000 --about $200,000 less than what she owes. The $30,000 will cover moving costs and the rental deposit for her next home. Farley, who is also approved for an additional $3,000 through a federal incentive program, is scheduled to close the deal Feb. 10.

“I wondered, why would they offer me something, and why wouldn’t they just give me the boot?” Farley, 65, said in a telephone interview. “Instead, I’m getting money.”

Tom Kelly, a JPMorgan spokesman, declined to comment on the company’s incentives.

“When a modification is not possible, a short sale produces a better and faster result for the homeowner, the investor and the community than a foreclosure,” he said in an e-mail.

A mountain of pending repossessions is holding back a recovery in the housing market, where prices have fallen for six straight years, and damping economic growth. Owners of more than 14 million homes are in foreclosure, behind on their mortgages or owe more than their properties are worth, said RealtyTrac Inc., a property-data company in Irvine, California.

Foreclosure Holdouts

Short sales represented 9 percent of all U.S. residential transactions in November, the most recent month for which data is available, up from 2 percent in January 2008, according to Corelogic. Bank-owned foreclosures and short sales sold at a discount of 34 percent to non-distressed properties in the third quarter, according to RealtyTrac.

As lenders shift their focus to sales, they are finding that some borrowers would rather risk repossession while they wait for a loan modification, according to Guy Cecala, publisher of Inside Mortgage Finance, a trade journal. In a loan modification, the monthly payment, and sometimes principal, is reduced to help prevent seizure. Homeowners facing foreclosure may live rent-free for years before they are forced out.

“That’s why the banks have got to pay the big bucks,”Cecala said. “The real question is why is the bribe so big? Is that what it takes to get somebody out of their home?”

Multiple Banks

Banks also pay a few thousand dollars to the owners ofsecond liens, whose loans can be wiped out by a short sale, to encourage them not to block the deals.

While JPMorgan is giving the largest incentive payments, other banks and mortgage investors are also offering them, according to interviews with 12 real estate agents in Arizona, California, Florida, New York and Washington. Lenders also provide incentives on loans they service and don’t own when the mortgage investor, such as a hedge fund, requests it.

JPMorgan, the biggest U.S. bank, approves about 5,000 short sales a month. It generally offers $10,000 to $35,000 in cash payments at settlement, real estate agents said. Not all of the sales include incentives.

Borrowers also can receive payments from the federal government’s Home Affordable Foreclosure Alternatives program, which in 2010 began offering as much as $1,500 to servicers, $2,000 to investors and $3,000 to homeowners who complete short sales.

Quicker Resolution

For banks, approving a sale for less than is owed on the home can cut a year or more off the time it takes to unload a property. From listing to sale, the transactions took about 123 days on average at the end of last year, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

Lenders spend an average of 348 days to foreclose in the U.S. and an additional 175 days to sell the property, according to RealtyTrac. In New York, a state that requires court approval for repossessions, it takes about four years to foreclose on a home and then resell it, the company said.

Lenders can often afford to forgive debt, offer the incentive and still make a profit because they purchased the loan from another bank at a discount, said Trent Chapman, a Realtor who trains brokers and attorneys to negotiate with banks for short sales.

Chapman, who also writes a blog on TheShortSaleGenius.com, said he’s heard about 50 homeowners who have received incentives from lenders including JPMorgan, Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc.

Wells Fargo

“My guess is they want to get rid of bad loans,” Chapman said. “If they short sale these types of loans, they have less of a headache and have some goodwill with the homeowner.”

Wells Fargo, based in San Francisco, offers relocation assistance of as much as $20,000 for borrowers who complete short sales or agree to transfer title through a deed in lieu of foreclosure “in certain states with extended foreclosure timelines, including Florida,” Veronica Clemons, a spokeswoman, said in an e-mail.

Bank of America Corp. sent letters to 20,000 Florida homeowners as part of a pilot program, offering incentives of as much as $20,000, or 5 percent of the unpaid loan balance, Jumana Bauwens, a spokeswoman, said in an e-mail. The program expired in December and the Charlotte, North Carolina-based bank hasn’t decided whether to introduce it in other states, she said. About 15 percent of the homeowners agreed to participate in the program, she said.

Citigroup Offers

“The bank is pleased with the response,” Bauwens wrote.“The state is experiencing higher foreclosure rates than other parts of the country and is therefore seen as a viable market to gauge incremental short-sale response and completion rates when presenting homeowners with relocation assistance at closing.”

Citigroup offers $3,000 to most borrowers who qualify for its program, but the “amount may increase based on the circumstances of each individual case,” Mark Rodgers, a spokesman for the New York-based bank, said in an e-mail.“Investor programs have different guidelines for relocation incentives, which we honor.”

Susan Fitzpatrick, a spokeswoman for Detroit-based Ally, didn’t comment specifically on incentives when asked about them.

Borrowers typically can’t negotiate the incentives, which arrive by mail, Chapman, the Realtor, said.

Tap on Shoulder

“It’s not really easy to identify the guidelines because Chase doesn’t tell you, they kind of tap you on the shoulder,”he said. “When I first saw it in January 2011, I thought it was a joke or a typo. I was convinced it must say $3,000, not $30,000.”

Offering enough for the homeowner to put down a deposit on a rental apartment is reasonable, said Sean O’Toole, chief executive officer of ForeclosureRadar.com, which tracks sales of foreclosed properties. Giving tens of thousands of dollars to delinquent homeowners sends the wrong message, particularly if they got into trouble by running up home-equity loans during the housing boom, he said.

“It may make sense for people to walk away, it doesn’t make sense for them to get rewarded for doing it,” O’Toole said. “It’s not the homeowner’s fault that house prices dropped so dramatically, but they have already received months of free rent, if not cash out.”

Cecala of Inside Mortgage Finance said he wonders whether lenders are making big payments on properties with underlying title problems. Evan Berlin, managing partner of Berlin Patten, a real estate law firm in Sarasota, Florida, said representatives of a large bank told him the incentives are primarily given to borrowers when it doesn’t have the proper paperwork needed to win its foreclosure case. He declined to name the bank for publication.

Incentive Disconnect

State attorneys general across the U.S. began investigating foreclosure practices in October 2010 following allegations that the nation’s top mortgage servicers were using faulty documents to repossess homes.

Berlin said his office negotiated about 400 short sales in the past year and about a quarter included an incentive, ranging from $3,000 to $48,000. In some cases, the payments aren’t incentives at all because they’re offered after the borrower has almost completed the short sale, he said.

“The idea is that this is relocation assistance,” Berlin said. “But when you’re offering $48,000, obviously it doesn’t cost $48,000 to relocate.”

Cooperation Sought

The size of the payment may have little to do with sales price. JPMorgan gave one Phoenix homeowner $20,000 after she sold her property in June for $32,000, according to Royce Hauger, the real estate agent who represented the seller and shared a copy of the settlement sheet with Bloomberg News. The bank also agreed to forgive more than $70,000 in debt, she said.

Kelly, the JPMorgan spokesman, declined to comment on the payment.

The homeowners are getting the money in exchange for their cooperation, said Kris Pilles, a Riverhead, New York-based real estate broker who represents banks, servicers and hedge fundsthat own distressed housing debt.

Pilles is frequently dispatched to the homes of delinquent borrowers to explain the benefits of avoiding foreclosure, he said. His clients have paid as much as $92,500. In return, the lenders expect the seller to clean the house before showings, and trim the grass.

“Money talks,” Pilles said. “From the bank side, it’s anything to initiate a conversation with someone who may not be listening to them.”

To contact the reporter on this story: Prashant Gopal in New York at pgopal2@bloomberg.net

To contact the editors responsible for this story: Daniel Taub at dtaub@bloomberg.net; Rob Urban at robprag@bloomberg.net.

CALL ME TO DISCUSS YOUR OPTIONS ! John Rainville (717) 554-7430

Help To Stop YOUR Foreclosure!

John Rainville — Sat, 06 Nov 2010 14:35:00 GMT

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Understanding Landlord Insurance

John Rainville — Fri, 29 Oct 2010 00:48:00 GMT

<div style='letter-spacing:normal!important;width:485px!important; padding:0 40px!important; font-family:Arial,sans-serif!important;'> <ul style='letter-spacing:normal!important;list-style:none!important;margin:0 0 30px!important;padding-left:0;float:left;width:485px;font-family:Arial,sans-serif!important;'> <li style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;display:block;vertical-align:baseline!important;padding:30px 0!important; border-bottom:1px solid #ebf0f2!important; color:#777!important; font-size:12px!important; line-height:20px!important;float:left;width:485px;'> <div style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;position:relative!important; float:left!important; width:100px!important; padding:0 12px 0 0!important;'> <a href='http://buyandsell.houselogic.com/articles/understanding-landlord-insurance/" style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;color:#16a8d3!important; text-decoration:none!important;'> <img style='border:0 none;' src='http://c0263062.cdn.cloudfiles.rackspacecloud.com/content/images/sized/buysell-landlord-insurance-getty_1x1_29d30328e35ef156a66ae7a0e0584f6c_jpg_80x80_q85.jpg" alt="For rent sign on mailboxes" title="buysell-landlord-insurance-getty" /> </a> </div> <h3 style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;float:left;width:373px;margin:0; font-size:16px!important; font-weight:bold!important;'><a style='color:#16a8d3!important; text-decoration:none!important;' href='http://buyandsell.houselogic.com/articles/understanding-landlord-insurance/" target="_blank">Understanding Landlord Insurance</a></h3> <p style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;margin:0;float:left;width:373px;'>Turning your home into a rental or buying an investment property? Expect to pay up to 20% more for the right insurance policy to protect your property. <a target='_blank' style='color:#16a8d3!important; text-decoration:none!important;' href='http://buyandsell.houselogic.com/articles/understanding-landlord-insurance/">Read</a></p> <div style='clear:both;'></div> </li> </ul> <div style='float:left;width:485px;'> <p style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;margin:0 0 12px!important; color:#000!important; font-size:12px!important;'>Visit <a style='color:#16a8d3!important; text-decoration:none!important;' href='http://www.houselogic.com">houselogic.com</a> for more articles like this.</p> <p style='letter-spacing:normal!important;font-family:Arial,sans-serif!important;margin:0 0 12px!important; color:#000!important; font-size:11px!important;'> Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®</p> </div> </div>

Where the deals are...

John Rainville — Thu, 23 Sep 2010 00:17:00 GMT

Everytime I run into someone out in public they are asking me "Where are the deals?".

Well they are all over right now. I see deasl everyday in all 17 counites we service in Pennsylvania.

First time buyer homes, move up and move down homes, rentals, vacation homes, land, commercial properties---you name it the deasl are out there.

IF you have cash or can get financed the bargains are all around for the taking.

In our Pocono Regional office we are fully set up to help you find a property, get it fixed up and rent it out on an annual basis. A "turnekey" opportunity for serious investors.

Cash for Clunkers for you appliances in PA! More FREE MONEY!

John Rainville — Sun, 31 Jan 2010 20:14:00 GMT

Pennsylvania Appliance Rebates

The State of Pennsylvania will implement a rebate program to help residents replace older, inefficient appliances with new, non-electric ENERGY STAR^® qualified and ultra-efficient appliances.

The program is tentatively scheduled to begin in April 2010. Residents may be able to "reserve" rebates once the program begins; the program will end when funds are depleted.

Eligible products include

Gas storage water heaters
Gas tankless water heaters
Oil furnaces
Gas furnaces
Oil boilers
Gas boilers

Residents are encouraged to recycle their old appliances.

Contact: Pennsylvania Department of Environmental Protection

Total Funding: $11,944,000

Program information subject to change. Rebates may be offered for a limited time only. Before purchasing a product, check with your program sponsor to ensure rebates are available, and to confirm product eligibility and program requirements. Products purchased must meet efficiency criteria as established by the state.

Tax Credit Extended and Expanded!

John Rainville — Fri, 20 Nov 2009 00:30:00 GMT

Dear Friend,

The U.S. Government recently extended and expanded the home buyer tax credit. The $8000 first-time home buyer credit that was scheduled to expire December 1st will continue in effect until April 30, 2010.

In addition, begining December 1st, many current home owners will qualify for a $6500 tax credit if they've lived in their curretn home for at least five years and are seeking to relocate. Plus, the income limits for single buyers and married couples were also raised.

There has never been a better time for you or someone you know to take advantage of this tax credit because hundreds of homes are now priced below market value.

If you have a family member or friend who could benefit from learning more about this tax credit program, please have them call me for a free one-hour consultation so we can discuss how these changes will help them.

John Rainville, Broker, Realtor
BrokersRealty.Com
Direct Dial (717) 554-7430 or (570) 245-1007

P.S. Because this program is a tax credit - it does not have to be repaid. Who's the next person you know who should learn about this program?

Procrastinators get 2nd chance to buy a home and get up to $8000 from the Govt!

John Rainville — Mon, 09 Nov 2009 13:27:00 GMT

Here is a quick overview of the legislation:

The tax credit is available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.

The tax credit remains at $8,000 for first-time purchasers. No change to definition of first-time purchaser.

There is a new $6,500 tax credit for repeat buyers. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.

Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.

Time is Running Out to Get the $8000 First Time Buyer Money! Must BUY by October 15th!

John Rainville — Tue, 08 Sep 2009 10:45:00 GMT

Yes, it's sad but true the Governments $8000 stimulus plan is coming to an end!

Don't be fooled that this may be exteneded---that is VERY doubtful!

Many of you are calling and asking "why" I am saying it end October 15th as the pares say December 1, 2009.

The reason is, you must find, a home, negotiaitate a deal and get it financed and to the settlement tabel NO LATER THAT 11-30-2009.

It is taking 45 days to "settle" a property right now.

SO FOLKS YOU HAVE LESS THAN 5 WEEKS LEFT TO GET $8000 for buying a home!

FREE REPORT----------How to Keep from Getting Ripped Off When you Buy a Short Sale

John Rainville — Tue, 31 Mar 2009 12:45:00 GMT

FREE REPORT

How to Keep from Getting Ripped Off When you Buy a Short Sale

By John Rainville, Broker, Realtor®, CSP, RECS, LTRS Certified

As banks foreclose on several homes in the area, buyers will find some amazing garage-sale priced homes; but buyers have opportunities to buy homes through a "short sale" before a home goes into foreclosure.

What is a "short sale?" A short sales may be defined as the sale of a foreclosed home at a price less than the existing mortgage balance; however the ultimate price of a short sale lies in the willingness of the bank to negotiate terms. This is a complicated process and,up until now, has rarely occurred. Short sales will without a doubt be prevalent in the next year.

It is good advice to consider hiring professional help when you are looking to buy a home. There are so many legal loop holes that the average person could be taken advantage of. Realize that the majority of lawyers and real estate agents have little experience in these sales. In order to be successful, you need to be very careful in who you select to be your helper. The most important point to consider is: Going it alone when purchasing homes in foreclosure will significantly increase your chance of failure at the bank.

The steps in the process are:

Locate homes which are in default, as early as possible, even possibly before the formal non-judicial foreclosure begins.

Search foreclosed homes with plenty of lead time before the Trustee's Sale (you may need weeks or months of lead time.)

Once you have created short list of such homes, narrow that list to only those homes you would likely purchase for yourself.

Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features, via a good database such as the local MLS.

Determine the exact mortgage balance and status of default or foreclosure.

Be sure to find out if there is a second or third mortgage on the house.

Research the possibility of other liens (tax liens, mechanic's liens, labor liens, state liens, etc.)

Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder (email, fax, phone, etc)

Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)

Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)

Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home, prices, the local market, and justification of your offering price. Your offer must be prepared very professionally or the bank will merely overlook you, without giving your offer a second look. You have to be able to make a case to the bank, as to why they should sell to you at this price.

In order to close on a deal in a short sale, you must follow through with all parties involved.

The complexity and difficulty of closing short sales should never be underestimated, even under the best of circumstances. It is hard to find a buyer of foreclosure properties through the short sale process, despite what con artists would like you to believe. You should have some experience before purchasing foreclosure properties. The reckless need to be aware of entrapment.

Buying a foreclosure may be a fast way to lose money if in the process you make major mistakes. On the other hand, because the purchase price is below the current market value of the home, it can be a great way to pick up equity immediately the day of closing. Many people have also come to a dead end with this process after months of frustration.

If you are thinking of doing this, contact me and I will get you on the right track. At this time you need to have a FICO credit score of at least 620 to get a mortgage, unless you have some cash saved. I have a contact who can help you get your credit cleaned up if you need it.

If you are serious and motivated to get in a home now and get the buy of a lifetime --- call me!

John Rainville, Broker, Realtor, CSP, RECS, LTRS Certified

PA State License # RM-419701

My cell phone is the best number to call me on (717) 554-7430

BrokersRealty.Com

(888) 774-8488

Walk in Closets are the cause of this Financial Situation---Seriously!

John Rainville — Mon, 23 Feb 2009 15:23:00 GMT

I have been pondering almost daily this great financial debacle that we have gotten ourselves into and how it happened. Now I understand Barry Obama likes to point the finger at the GOP or George Bush, but it started way before "W" became Number 43. It seems to me that this whole mess can be traced back to Post WWII America and the advent of the "walk in closet" to entice people to move to the new "burbs" outside of town. WHAT? you say! That's LUDICROUS! Now hear me out...

Most of us real estate professionals have been through our share of homes built all different years. So think about it...the 1800's and before we had armoires and PEGS for god sake to hang your clothes on---we only had a few shirts and pants IF we had more than one! Around the turn of the century we start to see what most bueyrs perceive to be miniscule closets in homes---now you coud hang maybe up to a dozen garments! The next jump is post WWII and the advent of the @#$ walk in closet----WHAMO! the world changed!

Now we started to hoard clothes, etc that we could hide in our WALK IN closets. Remember Lucy and Desi? She was ALWAYS hiding outfits! But now the "cow was outta the barn" and we havent' looked back----until now. At the same time we went from no garage to a one car to a two car to a three car---the third bay just to hold all the crap that WON'T fit in our WALK IN CLOSETS! But WAIT WE DIDN' T STOP THERE!

Hell, I've seen homes with 1500 Bottle "wine cellars"! We've got basements and attics and now we even RENT STORAGE UNITS for all the @$%# that won't fit in our @#$% WALK IN CLOSETS! What are we NUTS! We're renting space to store stuff we should have given away or sold on E-bay! In the rural areas where I live some of the folk who live in small houses or mobile homes have had to start storing their assets on the FRONT LAWN!

Hellooooo, why not sell that old AMC Pacer or cherry Gremlin that you are saving from the junk yard to someon who might actually be able to use it? Or at least scrap them gems and let us sned it to China to be melted down and sold back to us.Ohhh, I can hear some of you already laughing out loud, but hey what's YOUR closet look like? And I know I will hear from some Al Queda wannabe that this all goes back to a damn American Carpenter!

So Barry---back off George W. and the GOP and let America know where the blame outta be.

As always, IMHO.