refinancing
Don’t let debt swamp your retirement
Jun 29th
Filed under: Borrowing, Credit, Debt, Real Estate, Retire, Saving Money, Refinancing
A friend of mine nearing retirement is looking longingly at a new Harley, but getting financing is going to be a challenge. He’s contemplating refinancing his house and using some of the equity to buy the bike.
When he told me that, I didn’t say anything, but I guess I didn’t have to. My face must have done the talking. My friend is within 10 years of retirement. Unless he hit the lottery recently, he doesn’t have a huge amount of savings and his job has been off and on the last year or two while the economy has been so lousy.
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Home sales recovery: A state of mind?
May 3rd
Filed under: Home, Real Estate, Refinancing
A new online poll indicates that we have a ways to go before the residential real estate market in this country returns to anything resembling “normal” because the vast majority of those polled — 69% — don’t even believe we have hit the bottom in home sales.
That means that if you are looking to buy, you may hold off, thinking you will get an even lower price soon, while if you are looking to sell, you may hold off, thinking you will get an even higher price soon. Not exactly a vibrant marketplace that we are talking about here.
The HousingPredictor.com poll asked the simple question : “Do you feel your housing market has hit bottom?” 31% answered yes, while 69% said no.
Continue reading Home sales recovery: A state of mind?
Unemployed and underwater borrowers to get more government help
Mar 26th
Filed under: Debt, Home, Real Estate, Mortgages, Refinancing
If you’re unemployed or your home is severely underwater, help is on the way. The Administration announced additional options for struggling homeowners to get help and explained the program during a press briefing Friday. You won’t be able to call your lender right away, but you can call 1-888-995-HOPE (4673) for help with the Making Home Affordable Program and speak with a HUD-approved housing counselor for more information.
Underwater borrowers
Borrowers whose homes are underwater will be able to get help in two ways. If you’re making on-time payments you may be eligible for a refinance with an FHA loan. If you’re 60-days delinquent or more, you’ll need to apply for help through the Home Affordable Modification Program (HAMP).
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Plan to mandate modification review before foreclosure more PR than help
Mar 4th
Filed under: Banks, Home, Real Estate, Recession, Refinancing
The Obama administration is reportedly considering a plan that would prohibit lending institutions from foreclosing on a home before a mortgage loan modification is given consideration. This is the sort of thing that may sound good on paper (especially after “draft proposals” were obviously leaked to news media) but, upon closer inspection, I’m afraid, smells of nothing more than spin.
In that, I concur with Laurie Goodman, the senior managing director at the Amherst Securities Group who told the New York Times, ” We think there is a large public relations element to this.” She correctly points out that such a policy probably would have very little real-world effect.
Continue reading Plan to mandate modification review before foreclosure more PR than help
Man bulldozes his own home to thwart repossession
Mar 4th
Filed under: Home, Recession, Refinancing
If you’re the kind of person who hates to clean for company, perhaps you might see a subplot in the actions of an Ohio man who bulldozed his $350,000 house rather than surrender it to a foreclosing bank.
According to WLWT Channel 5 in Cincinnati, Terry Hoskins, who lived in the rolling hills east of Cincinnati, was losing the home on which he owed $160,000 as a result of a failing family business, which the bank claimed as collateral. The IRS was in line as well, looking for its pound of flesh.
Hoskins had told the bank beforehand what he intended to do in response to its actions.
Continue reading Man bulldozes his own home to thwart repossession
New lead rules may drive up remodeling costs
Mar 4th
Filed under: Real Estate, Health, Refinancing
If you live in an older home and are planning any remodeling projects, you might need to add some padding to your budget. This spring a new EPA requirement will mandate that special lead testing, work practices — and extra expenses are also part of any home improvements done to homes built before 1978.
As of April 22, 2010, remodelers will be required to both test those homes for lead and be certified to work within them using strict lead safety practices. That means that once a remodel begins, contractors must seal work areas off from the rest of the home, minimize dust that increases lead exposure risk, and go through a thorough daily cleanup routine including use of a HEPA vacuum.
The main area of concern is exposure due to lead based paint. About 38 million homes contain lead paint, and if your home was built before 1978, the last year lead paint was available; chances are it has lead paint somewhere under all those layers. Even if you are not planning to remodel, homeowners living in pre-1978 housing are smart to take steps to prevent lead paint exposure. Lead can cause neurological damage in children and contributes to hypertension, joint pain and more in adults.
But while the protection you and your family will receive is extremely valuable, this added layer of protection won’t come cheap. Requirements for remodeler training, certification and work practices are going to impact the bottom line of any home improvement you plan. Working around lead adds extra steps, materials and documentation, all of which could translate into additional project costs.
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Short sales proving popular for many wealthier home owners
Jan 8th
Filed under: Real Estate, Refinancing
Though imperfect in many ways, the government does have a number of options for the average homeowner in need of assistance to avoid foreclosure. But the U.S. median home price in October stood at only $173,000, down a whopping 25% from a high back in 2006 of about $230,200. What happens if you need help with your mortgage and your home is in the million dollar or above range? It’s not uncommon in many more affluent coastal regions of the north- and south east, as well as large swatches of California.
Increasingly, the best option for you folks, according to figures cited by Bloomberg News, appears to be the common short sale. (That’s when a lender agrees to take less than what the mortgage is worth just to get the property off its books.)
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