20 Things to Look For In a Home Inspection

Some new homeowners complain about problems that arise after they have purchased a home. Most complain about sellers who fail to disclose defects or home inspectors who fail to find them. The system is far from perfect. However, there are steps that buyers can take before and during a home inspection to protect their interests.

1. Check all electrical outlets to make sure that they work.

2. Open windows, even in the winter, to make sure they are not stuck or painted shut.

3. Look under any area rug or bed and behind any picture to check for cracked tiles, stained carpets or walls. Lift anything on the kitchen counters to look for defects.

4.Do any of the appliances show any rust? How old are they? If they are discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.

5. Start the dishwasher at the beginning of any home inspection. By the end, it should have gone through its entire cycle, without leaking.

6.Put a thermometer inside the oven and turn it on to 350 degrees. After 10 minutes, check the temperature. Test stove burners.

7. Put a cup of water in the microwave for 45 seconds. Does it heat up?

8. Flush every toilet and see whether it stops running after it is filled.

9. Check sinks, tubs and showers in the house. Is there proper water flow from each faucet and does everything drain properly?

10. You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.

11. In older homes, consider a separate sewage inspection. We recommend that you pay to have  a video camera inspection of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection. On properties where there are large trees, we do recommend the video inspection as we have experienced lines being damaged by roots. Knowing the damage prior to buying the property and what the cost to correct it would be, can be used in the negotiation of the property or result in us recommending that you should pass on the property.

12. Check under the water heater for leaks or stains on the floor.

13. Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house?

14. Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted?

15. If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area.

16. Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system.

17. When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.

18. You may also want to consider a separate inspection for mold or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area.

19. Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.

20. Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing, heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage.

By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly surprises after closing.

When you are ready to buy or sell a property, please call us so we ca help you realize your real estate goals. Richard can be reached at 805-404-1167 and Kirsten at 818-268-3236.

September Real Estate Buying Advice: Move-up buyers needn’t wait

Another month of economic bad news is taking its toll on the housing market. That can be good news or bad news for homebuyers, depending on who – and where – they are.

Wild stock-market swings, slumping sales and prices and renewed concerns about the stability of the U.S. economy are giving more homebuyers the jitters.

In recent weeks, applications for mortgage purchases dropped to the lowest level seen since December 1996, according to the Mortgage Bankers Association. Is it time to hit pause on your search? Or, with rock-bottom interest rates and values pushed back to last decade’s levels, will a purchase now have you patting yourself on the back in a few years?

We’ll ask the experts what they think about the economy’s sour state and its effect on the housing market. We’ll also review the latest housing stats and consider the merits of a home warranty.

Is there a case for cold feet?
The dire headlines of the past month have pushed consumer confidence to some of the lowest levels since the recession. But what does all this volatility in the stock market and economy mean for buyers, outside of low morale? That depends on how long it lasts, experts say.

If these economic woes continue with no improvement for months, that could push home prices down lower than predicted, says Stan Humphries, Zillow.com’s chief economist.

“The longer it drags on, the more impact (this turmoil) will have on the housing market,” Humphries says.

However, if employment continues to solidify and the market continues its slow but shaky recovery, the U.S. housing market could hit bottom by the end of next year and start slowly inching up again in 2013, says Ingo Winzer, president of forecasting firm Local Market Monitor.

Some markets in Texas, Southern California and parts of the Midwest could emerge more quickly. The U.S. debt downgrade, however, could further slow the recovery in markets with a high number of public-sector jobs, such as Sacramento, Calif., and Austin, Texas, Winzer says.

“Overall, the recent economic information doesn’t change our forecast a whole lot,” Winzer says. “We had already been expecting a very slow recovery.”

Prices are definitely falling at a much slower rate, edging down just 0.4% between the first and second quarter of this year – the smallest decline in more than four years, according to Zillow’s Real Estate Market Report.

The key to a sustainable housing recovery is jobs, experts say. A weak stock market may keep some people with significant money in equities from moving, but the real deciding factor for most people is whether or not the household is fully employed.

One bright spot: This economic volatility should keep interest rates, now hovering close to 4%, at historically low levels for the near future, making that home purchase more affordable.

Humphries says there’s really one overriding factor in whether or not buyers should pull the trigger on a home purchase, and that’s how long they plan to stay in the house. (Of course, they’ll also need to be creditworthy enough to obtain financing.)

If you’re going to be in the house for five years, you may experience some depreciation in the near term, with slight gains toward the end of that term.

First-time homebuyers stand to gain the most from waiting, as they might be able to buy a home for a slightly lower price six to nine months from now.

Move-up buyers, however, don’t have as much incentive to wait, as they will see depreciation on the home they are selling as well as on the house they are buying.

Still, with rental rates rising in many cities, buying will become more of an attractive option for many people who have enough money saved for a down payment. Buying a home (at median list price) was cheaper than renting the median two-bedroom apartment or condominium unit in 74% of the major U.S. cities that real-estate search site Trulia surveyed in its recent Rent vs. Buy Index.

Please call us to discuss how we can help you realize your real estate goals. Do you have a friend or family member who needs to buy or sell?  Please give them our name and number so we can help them realize their real estate dreams. Richard can be reached at 805-404-1167 and Kirsten at 818-268-3236.

Source:http://tinyurl.com/3fv4njc, Melinda Fulmer of MSN Real Estate

Scorecard for Obama on the Housing Front…

During his speech before Congress Thursday night, President Obama briefly referenced an initiative to help rescue the troubled housing market.

“To help responsible homeowners we’re going to work with Federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4% – a step that can put more than $2,000 a year in a family’s pocket, and give a lift to an economy still burdened by the drop in housing prices,” he said.

While details were scant, the new program sounds very similar to the existing Home Affordable Refinance Program (HARP) and isn’t the broad new program aimed at facilitating millions of refinancings that some were expecting, said Jaret Seiberg, an analyst for MF Global Inc.’s Washington Research Group, which analyzes public policy for institutional investors.

However, Seiberg noted that even if Obama wanted to trot out a bigger plan to rescue the housing market, getting the legislation passed by Congress would be extremely difficult.

“Regulators can tweak the HARP to make it more effective without the need for legislation or financing,” said Seiberg. “But a new initiative would require Congressional action, which we believe would be impossible to get.”

Whether the administration could make an initiative like this work is another question entirely. The Obama administration has unveiled several programs designed to help struggling homeowners and ease the foreclosure crisis — and many of them have fallen well short of their goals.

Here are some of the government’s previous efforts, and how they’ve fared:

Home Affordable Modification Program (HAMP)

Trial launch: March 2009

Borrowers affected: As of July 2011, there have been 1.89 million trial modification offers extended to borrowers since the program launched in March, 2009.

HAMP was a big early disappointment — not only because it fell well short of initial promises to lower mortgage payments for 3 to 4 million borrowers but because so many of the borrowers who were issued modifications early on quickly re-defaulted on their loans.

Track record: The program’s record has improved and re-default rates have dropped, but they’re still troubling. As of March, more than 19% of all borrowers with HAMP modifications are at least two payments behind twelve months after their loans have been modified.

Only 675,000 borrowers have received permanent modifications and are still in those refinanced mortgages. That’s compared to 764,000 trial modifications that have been cancelled, usually as a result of missed payments.

Still, there have been improvements, with borrowers earning permanent modifications more quickly and in higher percentages than before. The modifications have lowered borrowers’ payments by an aggregate of $7.8 billion, according to the Treasury Department.

Housing and Urban Development Secretary Shaun Donovan said that HAMP and other government foreclosure prevention programs have helped to create an infrastructure in which non-government mortgage modifications are processed.

In fact, the number of non-HAMP modifications during the first six months of 2011 came to 375,000, according to Hope Now, about twice as many as completed under HAMP over that period.

Second Lien Modification Program (2MP)

Launch date: April 2009

Participation: 37,466 borrowers

The Second Lien Modification Program (or 2MP) provides assistance to homeowners who have a second mortgage or a home equity line of credit in addition to their primary mortgage.

Many potential mortgage modifications have run into roadblocks because lenders of home equity loans and lines of credit refuse to cooperate. After all, the first mortgage holder typically gets paid first when an underwater mortgage gets modified and there’s often nothing left for the second lien holder.

Yet, second lien holders have to agree to a mortgage modification — and to take a loss — before a loan can be refinanced. Under 2MP, the government pays cash incentives to the lenders of the second loans so they will allow the refinancing to proceed.

Track record: So far, only 3,516 borrowers have had their second mortgages fully extinguished by their second loan lenders, with an additional 33,528 receiving a partial reduction in their principal or other steps to reduce payments. That’s a far cry from the estimated one million or more that the program was created to help.

The average amount involved is more than $67,000 for a full elimination of a loan balance and nearly $6,400 for a partial elimination.

Hardest Hit States Fund

Launch date: February, 2010

The Obama administration set aside $7.6 billion in funding for states that were hit hardest by the economic downturn to be used toward foreclosure prevention.

Eighteen states and the District of Columbia currently participate in the program and each state can spend the money on programs they determine best meet the needs of their residents.

Since the funding was allocated, all of the states have now implemented their programs, according to a spokeswoman for the Treasury Department.

They have directed about 70% of their funds toward programs that help homeowners who’ve lost their jobs, she said. Another 20% is being used to reduce mortgage principal for borrowers deep underwater. Much of the rest will go toward outreach and foreclosure counseling and prevention programs.

Track record: Too soon to tell. The Treasury does not aggregate data and the states have not produced full reports yet. There’s been a big uptick in the number of servicers volunteering to participate in the program.

Home Affordable Foreclosure Alternatives (HAFA)

Launch date: April, 2010

All HAFA agreements started: 25,716

Aimed at borrowers who are underwater on their mortgages and who’ve been denied a modification via HAMP, HAFA was supposed to be a last-ditch effort to help homeowners avoid foreclosure. They still, however, lose their homes.

The program pays cash to both the borrower and lender to encourage a short sale, a deal in which the bank accepts the proceeds of the home sale as full repayment of the mortgage debt, forgiving any loss.

The program includes deeds-in-lieu, which are agreements in which the bank takes back the home directly from the borrower as full repayment.

Track record: HAFA was also a disappointment, with few borrowers taking advantage of the program. Others who would have participated, were ineligible because they did not meet a 31% debt-to-income requirement for approval. Earlier this year, that requirement was lifted.

Principal Reduction Alternative (PRA)

Launch date: June 2010

Trial modifications started: 29,406

This program is for borrowers with loans that are not backed by Fannie Mae or Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more.

Loan servicers are not required to reduce the principal, just to consider doing so. The mortgages may be ones in the HAMP program.

Track record: With less than 30,000 participants, this program has yet to gain much traction. But for those who are eligible for the program, PRA can result in substantial savings. The average reduction in principal is nearly $70,000.

Home Affordable Unemployment Program (HAUP)

Launch: July 2010

Participation: Only about 13,521 borrowers were participating in the program as of the end of June.

This program originally reduced or suspended mortgage payments for unemployed borrowers for up to three months, but on Wednesday, the Treasury Department announced it would extend that for up to 12 months.

Track record: Participation has been limited. The GSEs, Fannie Mae, Freddie Mac and the FHA, have their own forbearance programs and they represent a huge share of the market.

FHA Short Refinance

Launch date: September, 2010

This is one of the few programs designed to help borrowers who have remained current on their mortgage payments. If their servicers agree to write off at least 10% of the principal, underwater borrowers can refinance into a new FHA-insured loan.

The refinance will put them back in the black, at least on their first mortgage: The debt-to-value ratio has to exceed 97.75%. With any second mortgage factored in, it can’t exceed 115%.

Track record: This got off to a very slow start, with only about 15 refinances done by early 2011. The program seemed to gain some traction this spring — 23 servicers had signed up to participate — when the House Financial Service Committee voted to kill it in March. It’s future is in doubt.

As of late August, there were 870 cases in the pipeline, according to HUD.

Emergency Homeowner’s Loan Program (EHLP)

Launch date: June, 2011

Loans affected: No data yet

This $1 billion program offers interest-free loans to homeowners who have been hit with a job or income loss and reside in one of the 32 states not covered by the Hardest Hit States program.

Loans are restricted to those who have a household income of $75,000 or less, or earn less than 120% of the median household income for a community. They must have missed at least three payments, be on the verge of losing their home and demonstrate the ability to resume payments once their period of unemployment ends.

Track record: The money is being loaned on a first-come first-served basis until it runs out. Originally, the deadline was July 27 but HUD later announced it would take applications up until September 15.

The program’s target is to help 30,000 borrowers.

Extended forbearance for FHA loans

Launch date: July, 2011

Loans affected: No data yet

This program extended to 12 months the period of time unemployed homeowners with Federal Housing Administration-backed mortgages could skip or make smaller mortgage payments, up from a minimum of four.

A HUD spokesman noted that the program became effective August 1 and that servicers had 60 days to implement it. He said it was too early to produce any data that showed the program’s effectiveness.

source:http://tinyurl.com/3hzs2fx

Do you have enough Homeowner Insurance and the right kind?

With all the hurricanes, forest fires, even an earthquake on the East Coast, now is a good time to start paying a little more attention to the homeowner’s insurance coverage you carry on your property.

Most people select their homeowner’s insurance policy when they buy property and just pay the bill each year, giving little thought to keeping the proper coverage in place. Rarely do they understand, or even look at, their coverage in following years. And as long as they don’t have a loss, they don’t even notice. The problem is once you have a loss, it’s too late!

Considering that your residence is probably your largest and riskiest investment, it really makes sense to better understand how insurance works to ensure you have the right type and enough coverage in place for your specific situation.

The objective of insurance coverage is to try to assist policy holders in avoiding major financial issues and disruptions to their lives if they have a loss. Insurance companies know that losses are generally predictable in total relative to a population of properties, but they are not foreseeable as to which specific property will incur the loss. You have insurance so that when that specific loss happens to you, the coverage will help ease the financial burden.

That loss could be a variety of different issues: a tree falls through your roof, a broken water line could cause a flood, or your playful Golden Retriever mistakenly bites a neighbor’s child.

Reviewing your homeowners policy, or renter’s insurance, is something you should do each year  to make sure you are adequately and properly covered.

How Much and What is Covered by Your Policy?

A standard policy has a single page noted as “Coverage Limits” with the maximum amount an insurer will pay out on each category of risk you have in being a property owner. Here are the more important ones:

Dwelling/Structure – This covers the main building structure, walls, roof, doors, windows, kitchen, etc. For example, if we have a house of 1,250 square feet which is valued at $560,000 but we only have $205/per square footage worth of coverage, or $256,250 maximum loss payout. That is because the rest of the value in our property relates to land (about $264,000), which typically doesn’t need insurance. Rule of thumb: If you have a big fancy house, you need more coverage.

It’s important to talk to your insurance professional each year and make sure that the current coverage maximum dollar limit for your dwelling is enough to pay to rebuild your house in case it is destroyed. Other dwelling coverages to discuss are “Extended Replacement” and “Building Ordinance” coverage — so as to make sure you are fully protected.

Personal Property – Your insurance also covers your personal items (i.e., clothing, computers, couches, flatware, etc.). Make sure you have enough coverage as personal property costs more than you think. Special expensive items like jewelry, and artwork should be discussed with your agent for the proper separate insurance.

Liability and Lawsuit Protection – Homeowners insurance also typically covers you if you get sued. Some examples would be if your child hits a baseball that hurts another child, or a slip and fall accident occurs on your property. Typical liability coverage is $300,000 and you need to discuss your net worth with your insurance agent to see if that is sufficient. If your net worth is high, it is smart to consider an “Umbrella” policy to increase liability coverage to $1 million+. Talk to your insurance agent to determine the premium cost increase.

Want a lower premium? Raise your deductible! When a loss occurs, you are required to pay for the first few hundred or thousand dollars of a claim out of pocket. This is called your deductible amount and you can select the amount. The reason to have a higher deductible is to get a lower premium.

Realize. however, that you will pay more out of pocket when a loss occurs. It’s wise to discuss this with your insurance professional.

What Isn’t Covered and What to Consider Adding

You also need to understand that a typical homeowners policy does NOT cover many perils like earthquakes, floods, business activities and other specialty occurrences. Other policies may cover these and your insurance professional can help.

HO-6 Policy for Condos: For townhouse and condominium owners, it’s wise to have an HO-6 policyin place. HO-6 refers to the form used for a condominium/townhouse insurance policy. An HO-6 policy typically covers the interior of the unit, personal property and personal liability from the “studs in.” Many people are under the impression that the condo association’s master policy protects interior unit coverage, but most times it does not.

Policy Binder – Your insurance company will mail you a policy binder that has all the coverage items, maximum limits, terms and conditions outlining your coverage with the insurance company. While this document is lengthy, it is your money at risk if you have a loss and are not covered.

To lower your risk and potential financial disruptions in life, make sure you have the right type and amount of insurance in place. Any loss will most likely be devastating, but by properly preparing yourself with sufficient insurance the loss should be a lot less painful.

If you, your friends or family are looking to sell or purchase a home, please contact us so we can show you how we can help you realize your real estate goals. Richard can be reached at 805-404-1167 and Kirsten can be reached at 818-268-3236.

 

 

Source: Leonard Baron, Zillow Blogger http://tinyurl.com/3ncz5ht

Fixing the Housing Crisis Would Create One Million Jobs Annually

By writing down all underwater mortgages to market value, the nation’s banks could pump $71 billion per year into the economy, create more than one million jobs annually and save families $6,500 per year on mortgage payments.

That’s the bottom line in a new report by The New Bottom Line, a nationwide campaign representing 1,000 faith-based and community organizations seeking to hold Wall Street accountable and find solutions for struggling and middle-class families.

Grassroots organizations across the country aligned with The New Bottom Line campaign are calling on State Attorneys General who are investigating the banks for foreclosure fraud to stand firm for a settlement agreement that both includes large-scale principle reduction for underwater borrowers and does not release the banks from claims beyond the robo-signing scandal.

“Homeowners across the nation are struggling to pay their boom-era mortgages with their recession-era salaries and the economy is suffering for it. Writing down the principals and interest rates on all underwater mortgages to market value would serve as the second stimulus that America so desperately needs, only without added costs to taxpayers,” according to the report entitled “The Win/Win Solution: How Fixing the Housing Crisis Will Create One Million Jobs.”

The plan would lower homeowners’ mortgage payments by an average of more than $500 per month or $6,500 per year. Six billion dollars per month that is currently going to mortgage payments would instead go toward buying groceries, school supplies, and other household necessities.

As consumer demand picked up, businesses would start hiring again. For example, the plan would inject an annual stimulus of $20.5 billion in California and 300,000 jobs per year; $1.64 billion in Ohio and 24,000 jobs; and $12 billion in Florida and almost 180,000 jobs.

Last year, the nation’s top six banks paid out more than twice the cost of the plan ($71 billion per year) in bonuses and compensation alone ($146 billion in 2010), the report says. Currently, the nation’s banks are sitting on a historically high level of cash reserves—$1.64 trillion.

If only, right!!!

Are you thinking about selling or purchasing a home?  Call Richard at 805-404-1167 or Kirsten at 818-268-3236 to see how we can help you realize your real estate goals!

Source:http://rismedia.com/2011-08-21/fixing-the-housing-crisis-would-create-one-million-jobs-annually/ Steve Cook.

5 Super-Expensive Foreclosures For Sale

Million-dollar-and-up homes are the fastest-growing segment of the U.S. foreclosure market, with banks seizing some 335% more such properties last year than they did in 2007.

“We’re seeing evidence in our data that the high-end market is starting to get hit more,” said Daren Blomquist of foreclosure watcher RealtyTrac.com. “I think high-end homeowners have a little more ‘padding’ to get through tough times if they experience a job loss or other trouble. But as the tough times continue, more and more of these homeowners are succumbing to foreclosure.”

True, RealtyTrac’s latest figures show that homes with $1 million or higher mortgages represented just 2.3% of houses in foreclosure during the first 10 months of last year. But that’s nearly twice as many such houses as in 2007.

Blomquist suspects more rich people are falling into foreclosure because they had mortgages they could easily afford in good times, but can no longer cover in today’s tough economy.

“No matter how wealthy you are, there’s always that potential that you’ll lose your job,” he said. “Even if you have a very high income, you’re always susceptible to not being able to make your mortgage payments.”

The good news: Well-heeled house hunters may find they can pick up million-dollar-and-up foreclosures on the cheap. The latest available RealtyTrac figures show foreclosed homes sold for 27% less on average than nonforeclosed properties did during 2011′s first quarter.

Here are the five highest-priced U.S. foreclosures listed for sale on Realtor.com:

The Villa Mar Vista Estate, Laguna Beach, CA
For sale: $19.95 million
Bedrooms: Four
Bathrooms: Seven
Square footage: 11,333
Built in: 2010

The estate has a heliport and a view of the nearby Pacific Ocean. Photo: Engeland Volker

This newly built estate’s listing describes the property as “a sublime junction of privacy, acreage, generous interiors, tasteful design, plentiful outdoor spaces and vast coastal vistas.”

Located about an hour south of Los Angeles in tony Laguna Beach, the Contemporary-style home features four bedroom suites, six full bathrooms and one half-bath, an in-home theater, an infinity-edge pool, a spa, a 20-car garage and private heliport.

Craftsman windows and French doors look out over the property’s gardens and terraces and out to the Pacific Ocean, which is less than a half-mile away. You’re also just a few blocks from the Aliso Creek Golf Course.

The Razor, La Jolla, CA
For sale: $25 million
Bedrooms: Four
Bathrooms: Eight
Square footage: 11,000
Built in: 2007

The oceanside residence has been the site of commercial shoots. Photo: Hurwitz James Co

You’ll have to act fast if you want to buy the Razor residence, because it’s going up for auction Sept. 28 if it hasn’t sold by then. Bidding will start at $16 million — cash only, please.

Located on bluffs some 15 miles north of San Diego, the Razor (named after a bluff at the nearby Torrey Pines State Natural Reserve state park) overlooks the Pacific Ocean from just a few hundred feet away.

The 11,000-square-foot Contemporary-style home features four bedrooms, six full bathrooms, two half-baths, two fireplaces, a heated pool, a dog run, an eight-car garage and a two-space carport.

Architectural Digest profiled the house in 2008, while Calvin Klein used it as the backdrop for a TV spot for its new high-end Calvin Klein Collection. Visa also shot a commercial there for its top-of-the-line Visa Black Card.

The house is near the University of California at San Diego, the Salk Institute for Biological Studies, the Del Mar thoroughbred race track and the Torrey Pines Golf Course, site of the 2008 U.S. Open.

East Mockingbird Lane, Paradise Valley, AZ
For sale: $17.995 million
Bedrooms: Seven
Bathrooms: Ten
Square footage: 17,015
Built in: 2009

Among the amenities are a robot Elvis and 21-car garage. Photo: John Hall & Associates

This estate features a main house with five bedrooms, three family rooms, two libraries, a billiard room, a wine room, a piano room and a hidden “panic room.” There’s also a mahogany in-home theater with a Dolby sound system and 13 seats that move in sync with the screen action. (A talking, singing Elvis Presley robot greets you at the theater’s glass entrance booth.)

Other amenities include a two-bedroom guest house, two swimming pools, an on-site solar-power station and a $1.2 million security system. There’s climate-controlled garage space for 21 cars — including a four-car “show garage” outfitted with restored genuine gas pumps from the 1920s and ’30s.

Located just outside Phoenix and Scottsdale, Ariz., the estate is a mile or so from the Phoenix Mountains Preserve, the Camelback Golf Club and the McCormick Ranch Golf Course.

The Wyndham Estate, Newport, RI
For sale: $7.9 million
Bedrooms: Seven
Bathrooms: Eight
Square footage: 12,500
Built in: 1891

The Baronial-style mansion looks out toward Martha’s Vineyard. Photo: Gustave White Sotheby’s International Realty

Located less than a mile from Newport Harbor on the Atlantic Ocean, the Wyndham Estate combines classic 19th century looks with 21st century updates.

The Baronial-style mansion features seven bedrooms, eight bathrooms, four fireplaces, a ballroom, a music room and a rooftop deck and whirlpool with ocean views out to Martha’s Vineyard some 20 miles away. The manicured grounds also host a man-made pond, waterfall and garage space for nine cars.

The Newport Country Club, New York Yacht Club and Ocean Drive State Park are nearby.

Biltmore Estates Drive, Phoenix, AZ
For sale: $6.95 million
Bedrooms: Nine
Bathrooms: Eleven
Square footage: 17,799
Built in: 2002

Country clubs and a golf course lie near the estate. Photo: Russ Lyon Sotheby’s International

Located in Phoenix next to the Arizona Biltmore Golf Course, this 1-acre estate features nine bedrooms, 11 bathrooms, five fireplaces, an in-home theater, library, wine cavern and al fresco patios, balconies and outdoor dining/dancing terraces. The rear courtyard hosts a massive heated pool and an adjacent spa.

In addition to the Arizona Biltmore Golf Course, nearby attractions include the Phoenix Mountains Preserve and Paradise Valley and Arizona country clubs some two miles away.

If you are interested in any of these properties, call Richard or Kirsten. Should you, your family members or friends be in the market to either sell or purchase a home, please call us.

Source:http://realestate.yahoo.com/promo/5-super-expensive-foreclosures-for-sale.html, By Jerold Leslie, The Street

It’s The Biggest Purchase You’ll Ever Make… Don’t Mess It Up

Like any area of personal finance, there are no “secrets” to buying a house.

But it does involve thinking different than most other people, who make the biggest purchase of their lives without understanding the true costs. Although I may be aggressive with my asset allocation, I’m conservative when it comes to real estate. That means I urge you to stick by tried-and-true rules, like 20 percent down, 30-year-fixed-rate mortgage, and a total monthly payment representing no more than 30 percent of your gross pay.

If you can’t do that, wait until you’ve saved more. It’s okay to stretch a little, but DON’T stretch beyond what you can actually pay. If you make a poor financial decision up front, you’ll end up struggling — and it can compound and become a bigger problem through the life of the loan.

Don’t let this happen, because it will undo all the hard work you put into other areas of your financial life. If you make a good financial decision when buying, you’ll be in an excellent position. You’ll know exactly how much you’re spending each month on your house, you’ll be in control of your expenses, and you’ll have money to pay your mortgage, invest, take vacations, buy a TV, or whatever else you want to do.

Here are some of the things you need to do to make a sound decision:

1. Check your credit score.

The higher your score, the better the interest rate on your mortgage will be. If your credit score is low, it might be a better decision to delay buying until you can improve your score. Good credit translates into not only a lower total cost, but lower monthly payments.

The table below (reproduced from MyFico.com) shows how interest rates affect your mortgage payment on a thirty-year fixed $216,000 loan:

FICO score	APR *	Monthly payment
760-850	4.22%	$1,058
700-759	4.44%	$1,086
680-699	4.61%	$1,109
660-679	4.83%	$1,137
640-659	5.26%	$1,194
620-639	5.8%	$1,268

* APR figures calculated in June 2011

2. Save as much as possible for the down payment.

Traditionally, you had to put 20 percent down. In recent years, people were allowed to put as little as zero down — but it’s becoming all too clear that this was a very bad idea. If you can’t save enough to put 20% down, you have to get something called Private Mortgage Insurance (PMI) which serves as insurance against your defaulting on your mortgage payments.

PMI costs between 1 and 1.25 percent of the mortgage, plus an annual charge. The more you put down, the less PMI you’ll have to pay. If you haven’t been able to save at least 10 percent to put down, stop thinking about buying a house. If you can’t even save 10 percent, how will you afford an expensive mortgage payment, plus maintenance and taxes and insurance and furniture and renovations and…you get the idea. Set a savings goal for a down payment and don’t start looking to buy until you reach it.

3. Calculate the total amount of buying a new house.

Have you ever gone to buy a car or cell phone, only to learn that it’s way more expensive than advertised? I know I have, and most of the time I just bought it anyway because I was already psychologically set on it. But because the numbers are so big when purchasing a house, even small surprises will end up costing you a ton of money. For example, if you stumble across an unexpected cost for $100 per month, would you really cancel the paperwork for a new home? Of course not. But that minor charge would add up to $36,000 over the life of a thirty-year loan — plus the opportunity cost of investing it.

Remember that the closing costs – including all administrative fees and expenses – are usually between 2 and 5 percent of the house price. So on a $200,000 house, that’s $10,000. Keep in mind that ideally the total price shouldn’t be much more than three times your annual gross income. (It’s okay to stretch a little here if you don’t have any debt.) And don’t forget to factor in insurance, taxes, maintenance, and renovations. If all this sounds a little overwhelming, it’s telling you that you need to research this stuff before buying a house. In this particular case, you should ask your parents and other home owners for their surprise costs.

4. Get the most boring, conservative loan possible.

I Like a thirty-year, fixed-rate loan. Yes, you’ll pay more in interest compared with a fifteen-year loan. But thirty-year loans are more flexible because you can ALWAYS pay extra toward your loan and pay it off faster if you want to. But you probably shouldn’t. Consumer Reports simulated what to do with an extra $100 per month, comparing the benefits of prepaying your mortgage versus investing in an index fund that returned 8%. Over a twenty-year period, the fund won 100% of the time. As they said, “…the longer you own your home, the less likely it is that mortgage prepayment will be the better choice.”

5. Don’t forget to check for perks.

The government wants to make it easy for first-time home buyers to purchase a home. Many state and local governments offer benefits to first-time home buyers. Check out HUD’s directory of local homebuying programs in your state. Also, check with your employer, who may also offer special first-time home-buying rates. Ask — it’s worth it. Finally, don’t forget to check with any associations you belong to, including local credit unions and teacher’s associations. You may get access to special lower rates. Hell, even check your Costco membership (they offer special rates for members, too.)

If you, your family or friends are looking to sell or buy a home, call Richard or Kirsten to see how we can help you realize your real estate goals. Richard can be reached at 805-404-1167 and Kirsten at 818-268-3236.

Source: http://www.mint.com/blog/goals/the-surprising-numbers-behind-buying-a-house-082011/  Ramit Sethi

Understanding the Countrywide Settlement

If you were a Countrywide Home Loan borrower in default of your loan between January 1, 2005 and July 1, 2008, start checking your mailbox for your portion of a $108 million settlement. The Federal Trade Commission (FTC) and Countrywide Financial reached a settlement in June 2010 in the lawsuit that the FTC brought against Countrywide for bad business practices. As the outcome of the settlement goes into effect, many people are unsure of what this means for them. Here are the answers to some commonly asked questions regarding the case:

Why did the Federal Trade Commission sue Countrywide Financial?

Countrywide was sued by the FTC for unfair and deceptive practices when servicing the mortgages of homeowners in default of their loans, or going through Chapter 13 bankruptcy. Specifically, the FTC alleged that Countrywide did the following:

• Overcharged homeowners for default-related services.  When a home loan went into default, Countrywide used subsidiary companies instead of local vendors for inspections, home maintenance, lawn maintenance, and other services. These subsidiary companies then marked up their fees, oftentimes doubling them. This resulted in excessive fees that homeowners had to pay.
• Made false or unverifiable claims about the amounts owed by homeowners that were going through bankruptcy.
• Did not notify people who were going through Chapter 13 bankruptcy of new fees or charges that were added to their loans.

What was the outcome of the case?

The FTC and Countrywide reached a $108 million settlement which will become a consumer redress fund for 450,000 former Countrywide borrowers. Homeowners will receive refunds for the expenses they incurred for the above mentioned reasons.

As part of the settlement, Countrywide discontinued illegal servicing methods, and agreed to make positive changes to their business practices. Countrywide was acquired by Bank of America in 2008.

Does this case affect me?

You are entitled to money if you were a Countrywide Home Loan borrower in default of your loan between January 1, 2005 and July 1, 2008.  You will get back the money owed to you from undisclosed fees or charges.

All borrowers should continue making payments on their loan. Accepting a refund will not affect your loan.

How do I get my money back?

If you are an eligible homeowner, you will automatically receive your check in the mail. The Redress Program Administrator for this case is Gilardi & Co. They will be sending out checks to people who are affected, at the end of July 2011.

Most people will receive about $240, the average of each check, though some borrowers may be entitled to checks made out for several thousand dollars.

If your address has changed, you can notify Gilardi & Co. by email at: ftcvcountrywide@classactmail.com. You can also send them your change of address at:

FTC v. Countrywide Home Loans, Inc.

c/o Gilardi & Co. LLC, PO Box 808054, Petaluma, CA 94975-8054

Renter tried to sell home…. really

OK, this is the reason, we do a very thorough background check for our clients when we lease their properties through our Property Management Company, The Virtuoso Property Group. The background check includes: all 50 states criminal check, 50 state skip check, 50 state eviction checks. Short of us asking you for your firstborn. Peace of mind for our clients that they have good and sound tenants in their investment properties.

PLEASE READ the story below:

Associated Press11:30 a.m. CDT, July 30, 2011

CAMPTON HILLS, Ill.—

Suburban Chicago police are searching for a 36-year-old man they say tried to sell a home that wasn’t his.

Campton Hills police have issued an arrest warrant for Daniel Kellogg, but officers say they can’t find him.

Kellogg rented a Campton Hills home and allegedly paid his rent with bad checks. Court records show he sublet the home to other renters and pocketed their rent money.  He’s also accused of changing the title of the house to his name and listing it with a real estate agent.  Kellogg’s last known address is the home he rented.

He’s due to report to prison on Aug. 11 in connection with unrelated burglary charges.  Kellogg’s attorney has said he suffers from bipolar disorder and mild schizophrenia.

Five smart steps every new homeowner should take

Turning the key in a lock that no landlord has access to, reading in a hammock in your own backyard and painting your dining room bright red – what could be more exciting than making the leap from renter to first-time homeowner? Getting swept up in all the excitement is a wonderful feeling, but some first-time homeowners lose their heads and make mistakes that can jeopardize everything they’ve worked so hard to earn.

Don’t be one of those people; take a few moments to ponder these five practical concerns that will help ensure that your first home becomes the place of luxury and financial freedom you’ve anticipated.

1. Don’t Overspend on Furniture and Remodeling

You’ve just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners – not only are their savings depleted, their monthly expenses are often higher as well, thanks to the new expenses that come with home ownership, such as property tax bills and extra insurance.

Everyone wants to personalize a new home and upgrade what may have been temporary apartment furniture for something nicer, but don’t go on a massive spending spree to improve everything all at once. Just as important as getting your first home is staying in it, and as nice as solid maple kitchen cabinets might be, they aren’t worth jeopardizing your new status as a homeowner. Give yourself time to adjust to the expenses of home ownership and rebuild your savings – the cabinets will still be waiting for you when you can more comfortably afford them.

2. Don’t Ignore Important Maintenance Items

One of the new expenses that accompanies home ownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn’t neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.

3. Hire Qualified Contractors

Don’t try to save money by making improvements and repairs yourself that you aren’t qualified to make. This may seem to contradict the first point slightly, but it really doesn’t. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything else you value highly. There’s nothing wrong with painting the walls yourself, but if there’s no wiring for an electric door opener in your garage, don’t cut a hole in the wall and start playing with copper wires. Hiring professionals to do work you don’t know how to do is the best way to keep your home in top condition and avoid injuring – or even killing – yourself.

4. Get Help with Your Tax Return

Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you’re already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Home ownership can change some people’s tax situations and the deductions they are eligible to claim. Just getting your taxes professionally done for one year can give you a template to use in future years if you want to continue doing your taxes yourself.

5. Get Properly Insured

Your mortgage lender requires you not only to purchase homeowners insurance, but also to purchase enough to fully replace the property in the event of a total loss. But that’s not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to help pay the mortgage, whether it’s a girlfriend or a child, you’ll need life insurance with that person named as a beneficiary so he or she won’t lose the house if you die unexpectedly. Similarly, you’ll want to have disability-income insurance to replace your income if you become so disabled that you can’t work.

Bottom Line

With the great freedom of owning your own home comes great responsibilities. You must manage your finances well enough to keep the home and maintain the home’s condition well enough to protect your investment and keep your family safe. Don’t let the excitement of being a new homeowner lead you to bad decisions or oversights that jeopardize your financial or physical security.

Call Richard and Kirsten to discuss how we can help realize your real estate goals, whether, selling or purchasing a home, buying investment properties or to share with us who we can help next. Richard can be reached at 805-404-1167 and Kirsten can be reached at 818-268-3236.

Source: Amy Fontinelle, Investopedia.com http://tinyurl.com/4xv2zth