Private mortgage insurance helped save families from foreclosures this year, claims Genworth Financial. The company recently released its Foreclosure Prevention Scorecard that touts that more than 11,000 homeowners were helped in the last 12 months.

The top 10 states where a form of a “workout” — (repayment plan) or loan modification — to avoid foreclosure occurred were Texas, Florida, Georgia, Ohio, Pennsylvania, Michigan, North Carolina, Illinois, New York, and Indiana.

“Foreclosure doesn’t benefit anybody. As a mortgage insurer, we’re trying to do our best to work with the borrower and keep that person in the home as well as work with the mortgage servicer and the investor so that all parties win,” says Alan Goldberg, Vice President Homeowner Assistance Program at Genworth Financial Mortgage Insurance.

Some borrowers believe that private mortgage insurance doesn’t benefit them, but the company’s Scorecard shows differently.

Chris Antonello, Senior Vice President of Marketing, Genworth Financial Mortgage Insurance discussed the Scorecard with me. It revealed that workouts increased 56 percent over the same period last year. Nationally, homeowners were helped mostly by repayment plans and loan modifications. Repayment plans accounted for 50 percent of all workouts, and loan modifications 32 percent. Antonello says that, nationally, 89 percent of homes were rescued. “Basically nine out of 10 homeowners that we deal with are able to stay in their home. The balance are people who either have to go through a short sale or deed in lieu — they do leave the home but it’s only 11 percent,” says Antonello.

“We’re also trying to highlight that a significant amount of these borrowers have monthly payments of under $1,000 which is important because people who need the help are getting it,” says Antonello. The scorecard shows that 53 percent of those helped have monthly payments under $1,000.

Goldberg says Homeowner Assistance Program works directly with the mortgage servicers and the borrowers when there is a problem. “If the mortgage servicer hasn’t put the borrower on a workout by the fourth month of delinquency, we start contacting the borrowers — and we have a whole campaign where we send them written material and a calling campaign to let them know that workout assistance is available and that we can help them avoid foreclosure.”

Goldberg’s team seeks to create a repayment plan that works for all or a loan modification.

“If borrowers cannot afford the house, then we help them to sell the house and still avoid foreclosure,” says Goldberg. He adds, “If they’re upside down, we would reduce the payoff on the loan, effectively paying the claim, so the difference between what the home sold for and what the payoff was, would be up to the amount of the loss assuming it didn’t exceed the amount of the coverage that we had.”

“It’s very important that we reach out to people who are struggling to let them know that mortgage insurance does provide this benefit. As they’re going through hard times, the more people we can save and keep in their homes the better and at the same time as they make new decisions they should consider mortgage insurance,” says Antonello.

For those who are looking for either a new loan or to buy a home, Antonello says he hopes the same mistakes aren’t repeated. “Part of what drove the problem was that it was en vogue to avoid private mortgage insurance. Instead a lot of people did piggyback loans — the 80-10-10 or 80-20 — so they were highly leveraged and now, when they’re running into a situation, they don’t have somebody like [Genworth and Homeowners Assistance] trying to help them,” says Antonello.

Antonello says, “One of the things with private mortgage assistance is that it not only gets you into the home sooner but it keeps you in the home and it’s less risky than other alternatives that are out there and we provide this service so that, if you do run into a problem, our Homeowner Assistance Program comes at no-added cost — it’s free protection — it’s already built into the premium that the borrower pays.”

Written by Phoebe Chongchua

Here’s some potentially good news for investors from the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac.

James Lockhart, who runs the agency, says there’s been some “re-thinking” underway on the controversial limits on the numbers of rental properties investors can own if they’re seeking new financing.

Both Fannie Mae and Freddie Mac have imposed a four-unit limit, reversing their previous investor maximum of ten units.

The rationale for the change, according to the agencies, was their belief that investors who own higher numbers of rental condos and houses pose a greater risk of default, foreclosure and loss for the companies.

The restriction effectively shut out many small investors from Fannie’s and Freddie’s standard programs — and pushed them into much higher-cost financing from so-called “hard money” lenders.

In a letter to Charles McMillan, president of the National Association of Realtors, Lockhart said, “While no final decisions have been made, I can share with you the fact that the issue of raising the selling guide ceiling on investors loans is under active consideration at one of the (corporations), and reflects an appreciation of the role for investors in the housing recovery.”

Realty Times obtained a copy of Lockhart’s letter to McMillan, which was intended to respond to issues raised at the Realtors’ annual convention in Orlando in November, where Lockhart spoke to two sessions. Lockhart did not disclose which company may soften its rule, but when one changes its standards, the other typically follows suit.

Lockhart addressed another issue of concern to investors and other buyers of condo units: The negative impacts of growing numbers of foreclosed units and bank-owned REO in condo projects.

Under current rules, Fannie and Freddie generally avoid loans in condominium developments where less than 51 percent of the units are owner-occupied. The problem is that both companies define REO and foreclosed units as non-owner-occupied, even though they are temporarily vacant and not owned by investors.

Lockhart said in his letter that “at least one” of the two corporations — either Fannie or Freddie — “is considering a clarification of the 51 percent (rule) that would exclude REO units from being counted as investor units … in the owner-occupancy ratio.”

Lockhart offered no timetables for either of these key potential policy improvements, but investors may well see one or both changes within weeks.

At the very least, it’s good news that the top executive regulating Fannie and Freddie recognizes the significant roles investors can play in helping the industry dig out of the current mortgage mess.

Written by Kenneth R. Harney

When you hear Napa, Sonoma, and Solano, you may think more about cabernet sauvignon and chardonnay, not condominiums. However, one of California’s wine country sides is becoming one of the hottest condo markets in the country.

Condo sales in the nine-county area surrounding the San Francisco Bay are shooting through the roof, ranging from sales increases of 2.7 (San Mateo) to 188 percent (Sonoma). The Marin Independent Journal reports the upward swing of each county year over year for the month of September 2008. The driving force is the downward spiral of prices over the last year in the region.

Solano County has experienced a drop of 67 percent year over year, and had a median condo sales price of $92,000 in September – down from $284,000 in September 2007. While foreclosures and economic uncertainty have driven the sales prices of housing in central California, “in Marin, foreclosure sales … accounted for 14.9 percent of total sales, continuing a steady increase from 13.5 percent in August and single digits a year ago,” according the paper’s online version at marinij.com.

The paper quotes Coldwell Banker broker George DeSalvo, “who specializes in real estate owned, or REO, properties that have gone through foreclosure, said Marin’s real estate market has ‘touched bottom.’

“When you sell a condo in the (San Rafael) Canal district for $225,000, that’s perceived as the bottom of the market,” he said. “The investors are coming out and they’re buying these for 50 cents on the dollar.”

Written by M. Anthony Carr

Laundry Tips

• Wash your clothes in cold water using cold water detergents whenever possible.
• Wash and dry full loads. If you are washing a small load, use the appropriate water-level setting.
• Dry towels and heavier cottons in a separate load from lighter weight clothes.
• Don’t over dry your clothes. If your machine has a moisture sensor, use it.
• Clean the lint filter in the dryer after every load to improve air circulation.
• Use the cool down cycle to allow the clothes to finish drying with the residual heat in the dryer.

 

Question: I’m pretty good at remembering faces, but I have always been terrible at remembering names. Since I worked in a retail store in my previous occupation it was not much of a problem. However, it is starting to be a definite source of difficulty for me now in my fledgling real estate career. Any suggestions on how I might improve?

ANSWER: You are right to be concerned, since being able to remember customer and client names is absolutely critical to your success. Let’s face it, if folks figure you are not bright enough or concerned enough to remember their names, they may develop serious misgivings about your ability to put together a complex real estate transaction. Here are my specific suggestions.

Do an Attitude Check. First, and most important, stop saying you are not good at remembering names. That becomes a self fulfilling prophecy. For example, my boss at the community college where I teach is an energetic woman approximately half my age and with twice my intellectual capability. When I explained the memory system to her that I am going to share with you here, she said something like: “That’s easy for you, but I couldn’t do that, since I’ve always been awful at remembering names.” This she says to a person who spends untold hours wandering around the parking lot at the local supermarket trying to remember where he parked his car. Remembering names is not easy for anyone, but you must make up your mind to “just do it.”

Develop a System In remembering my students’ names in my real estate licensing classes I teach at an Oregon Community College I use a technique based upon association. The best way I can illustrate is to share with you actual names of some of my past students and the tortured techniques I used to remember them. The interesting thing I’ve found about this system is that if I can recall only a part of my memory jog, I can recall the entire name.

 
• Joan Harp. Joan was a nurse. A noble endeavor – like Joan of Ark. Joan of Harp. 
• Sharon Sidener. Sharon was also a nurse and from the same small town as Joan. They sat at the same table. There was Joan Harp and Sharon the table right a sidener, was Sharon Sidener. 
• Brian Weinhold. Brian spent his freshman year at my alma mater, the University of Oregon. However, he got tired of trying (rhymes with Brian) and transferred. However, he still holds the record for the most wine consumed in the annual Duck Wine Sipping Contest — the Weinhold Record. Brian Weinhold. 
• Dwight Endicott. Dwight had a nice smile, much like Dwight D. Eisenhower (I know, before your time). Dwight did seem a bit tired. Perhaps a nap was in order. If so, where would he sleep? En di cott, of course. Dwight Endicott. 
• Warren English. Warren was a strapping fellow. I could see him in a Knight’s regalia ready to battle for King and country. Perhaps a Norman Knight. If so, they would probably invade the British Isles. We had better: Warren the English. Warren English. (Even now when he calls me he identifies himself as “Warren the English.) 
• Charlene Godfrey. If God were going to frey us a hamburger, he would naturally want it to be healthy and would char lean. Charlene Godfrey. (Charlene threatened to change her name after I shared this with the class.) 
• Sam Chan. Sam, Sam, he’s our man, if Sam can’t do it, no one chan. Sam Chan. 
• Pam Gordon. Pam’s parents’ favorite comic strip was Flash Gordon. They were actually going to name their child “Flash” if it were a boy. Since it was a girl they named her “Pam”, but they always referred to her as their little “Flash in the Pam.” 
• Darwin Baker. He said he had been a real trouble maker in high school, but had evolved (Darwin evolved) into the model citizen he now was (he worked for the FBI). Darwin “trouble maker” Baker. 
• Rosemarie Hubley. A pretty lady. I could envision Nelson Eddy singing “Rosemarie” to Jeannette McDonald (much before my time, but I’ve seen the old movies). She was active in volunteer work, but what did her hubley do? (He was an engineer). Rosemarie Hubley. 
• Valarie Deaton. Valarie was co-owner of a roofing company and worked hard, for which Valarie needed calories. When ordering roofing material she ordered by de ton. Valarie Deaton. 
• Melba Rust. Before she moved to soggy Oregon her name was Melba Toast. Now, of course, it’s – Melba Rust. 
• Ginger Maze. Ginger maintained she had never snapped at her husband, which I found a-maze-ing. Ginger Maze. 
• Linda Mintken. Linda worked as a mortgage loan officer at a local Credit Union (a Lenda). When I asked her if I could get a loan, she replied: “Sorry, go to the mint, Ken.” Linda Mintken. 
• Pat Rickard. Pat was preparing for a second career. She confided that she actually thought about going into real estate several years ago, but did not – “Pat sat.” Had she taken action then, today she would be a lot “rickard.” Pat Rickard. 
• Julie Flesher. Julie was clearly a jewel. However, she was never a flasher. On occasion, perhaps, a flesher, but never a flasher. Julie Flesher. 
• Romeo Sebrowski. A house painter who took my course to learn more about real estate investing. There was absolutely no association I could make for Romeo’s name (other than calling him the Polish Prince), but who could forget a classy name like Romeo Sebrowski?

Loosen Up & Bear Down! Can you improve your ability to remember names? Absolutely. Make it a game. Have some fun. No, you don’t need a warped sense of humor to succeed (OK, it does help). But most importantly — just do it!

Written by Dr. Ken Edwards

Winter can pose unique challenges for those trying to sell their homes. Cold weather and the hustle and bustle of the holiday season can keep would-be buyers at bay. That’s why it’s especially important to maintain strong curb appeal throughout the winter months.

Curb appeal, of course, is the first impression one gets from simply viewing the outside of the home. Just as many folks judge a book by its cover, homebuyers draw certain conclusions about a home just from what they’ve viewed outside. Here are some easy tricks to entice buyers to stop by your home and actually step inside.

First, start with the home itself. Remember that all the upgrades inside the house are useless if you can’t get buyers inside. Giving the house a fresh coat of paint or repainting/staining the front door can both make a huge impact. Also, check the condition of the roof and gutters and fix or replace them if necessary. And don’t forget to paint or clean the garage doors and windows.

Secondly, think about sprucing up the front porch. Updating lighting or sconces can really frame the entrance to the home nicely. Also, something as simple as replacing a worn-out doormat can add an element of warmth to a home. Consider placing urns or planters on either side of the front door.

In winter, it’s ideal to use evergreens or colorful poinsettias. Of course, if you’re anticipating a hard freeze, you might need to protect those potted plants by covering them with a blanket, sheet or plastic. And if your street number is located on the porch, be sure that it is easy to see from the street.

Next, address your landscaping. Keep in mind that a clean lawn can go a long way. Make sure to clean up any toys or trash you see and only set out your garbage can or recycling bin on pick-up days. Neatly rake leaves and debris and place your compost pile in the back or side yard; you don’t want anything to distract from the beauty of your home.

If you live in an area that experiences harsh winters, it’s understandable that your yard isn’t exactly going to be lush. But including certain plants into your year-round landscape can help alleviate the drabness of winter. Evergreens, pines, hemlock, spruce and vibrant holly bushes can really shine through the coldest of months. And adding bird feeders to your lawn can attract and provide shelter for wild birds.

It’s also essential to make sure that buyers can reach your front door easily and safely. Repair cracks in the sidewalks and driveway and make sure that all walkways are cleaned, edged and properly illuminated.

Lastly, make sure your prospective buyers can picture themselves living in your house. This means not going overboard on holiday decorations. You want your décor to be tasteful, but not to overpower the home itself. Give the buyer a chance to envision your home in its everyday condition.

It doesn’t require a lot of money to improve your homes curb appeal. But what it does take is careful planning, due diligence and a bit of creativity.

Written by Tara Darby

You are about ready to close your real estate transaction on a home; did you consider a home warranty?

“It is not mandatory in any state that you have to get one. But in some states it’s mandatory that it is offered on a purchase agreement of the real estate contract,” says David Sobel, VP of Sales, for Home Warranty of America.

Depending on where you live, you may have heard about a residential service plan or home warranty from your real estate agent. How important are these warranties? What do you really get? Let’s explore.

Why a home warranty?

Sellers want peace of mind that buyers won’t be calling them after the sale of their home, with problems about items in the home breaking down and expecting the sellers to pay to fix them.

Buyers want to know that the home they’re buying is going to be protected and not cost them a lot of money once they move in. The home warranty helps both sides achieve their goals.

Also, in these tough economic times, Sobel says sellers can take comfort in knowing that the home warranty can help. “It does help sell homes,” says Sobel. He says that when buyers are faced with a choice between two similar type houses with a comparable price point, the house with a warranty is usually preferred.

What’s covered by a home warranty?

The plans differ from company to company but, generally speaking, the home warranty covers major mechanical systems and appliances such as furnaces and air conditioning, plumbing and electrical items, and appliances.

“It’s a repair or replacement warranty,” says Sobel. When something malfunctions, the homeowner calls the home warranty company. A technician is sent to look at the problem. The homeowner pays a flat fee for the service call. “Then the warranty company either repairs or replaces the warranty covered item,” says Sobel.

When to buy a home warranty?

The best time to purchase a home warranty, according to Sobel, is during the actual real estate transaction. This is because “not all companies offer it later.” Sobel adds that what’s offered later is often not as good, “Those prices [for the home warranty] after the transaction typically increase and the coverage usually decreases,” says Sobel.

He says this is because if there is no real estate transaction then there is no due diligence being done. “No inspection was done. The seller didn’t disclose if things were working,” explains Sobel.

What does a home warranty cost? Sobel says they average about $400 across the nation with a flat service fee ranging anywhere from $50 to $100 per call.

Who pays for it? This can vary from state to state, depending on market conditions. “In today’s environment, the buyer has more leverage so we’re seeing the seller pay for it more often,” says Sobel.

Know before you buy.

A few key steps can help you decide which company to use to purchase a home warranty.

 
• Make sure the company is licensed in the state that the home is in. 
• Verify that the company is real — sounds obvious, but lots of scams occur when some consumers find the company online and then don’t bother to confirm that the company is more than just a website. 
• Call the company and ask for referrals. Find out what other customers are saying about their experience with the company. 
• Don’t fall for gimmicks. “If a company is giving you all the coverage that other companies are offering at a discounted rate of 50 percent off, run as fast as you can — it’s too good to be true,” says Sobel. He says all the national companies selling home warranties offer plans that are within a five-to-10-percent price range of each other. 
• If a company offers a gift card or incentive to buy the home warranty, “that’s not a real company. It’s illegal to give incentives to buy warranty.

Written by Phoebe Chongchua

With the holidays just around the corner, you better get busy shopping. Here’s a short wish-list of this years must-have gadgets and gizmos for the home. These modern gifts are sure to get your motor running while also enhancing the functionality and livability of your household.

Wireless Home Security System
For about $200 you can bestow the gift of peace of mind. One of the great benefits of going with a wireless home security system is that it alleviates the issue of digging holes and drilling into walls which could be an issue if you’re planning a move in the near future. This allows a family to feel safe at home without doing any real damage to the home. The X10 Monitor Plus System offers three-way protection: a screaming siren, flashing lights, plus an emergency dialer. Maintenance of this system is minimal, including the monthly service charge of $20.00.

Keyless Home Entry
Is there someone forgetful on your list? Then you might want to consider the Keyless Pro Keyless Touchpad Lock. These locks are offered in several tarnish-free finishes, are easily installed and range in price from about $100-$280. Several codes can be accepted simultaneously and the codes can be individually deleted. This means your real estate agent or housekeeper can have a different code from your family. An added safety feature is the warning alarm which sounds after four failed entry attempts. This gift is tech-savvy, practical and very affordable.

Electronic Heater
This updated electronic heater will be as much of a conversation piece as it will be a source of warmth. The has a unique modern design which combines the look of an LCD display with the toasty heat of a space heater. The functionality and price of this product, just $242, is what really makes it nice. And the good thing about this “fireplace” is that it’s practically maintenance free and can be moved around the house as needed.

Robotic Vacuum
For the handy homemaker on your list the iRobot Roomba 510 robotic vacuum is a must-have. This little robot zips over carpets and other floor surfaces clearing them of debris and pet hair. The 510 is the newest generation of robotic vacuums offered by iRobot. There’s no need to worry about bumps to your baseboards or furniture, this rechargeable model has a very sensitive system in place to detect the proximity of walls, furniture and other obstacles. While the iRobot won’t replace your traditional upright vacuum, it’s a great value at $250 and can be used daily to help keep the home spic and span for open houses.

Robotic Lawn Mower
Its hard work to maintain great curb appeal, but you can make that task easier by giving the Automower solar-powered robotic lawn mower. The Automower is able to trim a quarter of an acre with 10 hours of charging. It even has built-in technology to avoid flower beds and potted plants, plus a feature that prevents it from harming pets and kids. For those seeking a green lawn but who are also green minded, the $3,100 price tag is worthwhile.

Jacuzzi Tub
There’s nothing wrong with a little bathroom remodel while indulging the one you love. The Jacuzzi La Scala Whirlpool tub is the ultimate in luxury and doesn’t just appeal to the ladies. In addition to the silent air induction system, adjustable directional jets and underwater mood lighting, it also features a 43″ flat-screen HDTV complete with a DVD and CD player, FM/AM radio, surround sound and a floating remote control. This is the ultimate addition to any master suite and can be purchased for about $34,000.

Smart Treadmill
If there’s a fitness fanatic in your life then you’ve got to check out the latest in home-gym technology. The Technogym Treadmill 700i isn’t your average treadmill. It’s got enough bells and whistles to keep you entertained even on the longest of runs. The 700i includes an iPod dock, touchscreen, television, radio, and software capable of automatically determining a workout regimen. The treadmill is pricey at $16,000, but it’s perfect for tackling those New Year’s resolutions.

Written by Tara Darby

Insulation Tips

• Consider factors such as your climate, building design, and budget when selecting insulation R-value for your home.
• Use higher density insulation, such as rigid foam boards, in cathedral ceilings and on exterior walls.
• Ventilation plays a large role in providing moisture control and reducing summer cooling bills. Install attic vents to help make sure that there is one inch of ventilation space between the insulation and roof shingles. Attic vents can be installed along the entire ceiling cavity to help ensure proper airflow from the soffit to the attic, helping to make a home more comfortable and energy efficient.
• Do not block vents with insulation, and keep insulation at least 3 inches away from recessed lighting fixtures or other heat producing equipment unless it is marked “I.C.” – designed for direct insulation contact.
• The easiest and most cost effective way to insulate your home is to add insulation in the attic. To find out if you have enough attic insulation, measure the thickness of insulation. If there is less than R-19 (6 inches of fiber glass or rock wool or 5 inches of cellulose) you could probably benefit by adding more. Most homes should have between R-19 and R-49 insulation in the attic.
• If your attic has ample insulation and your home still feels drafty and cold in the winter or too warm in the summer, chances are you need to add insulation to the exterior walls as well. This is a more expensive measure that usually requires a contractor, but it may be worth the cost if you live in a very hot or cold climate.

 

Upgrading kitchens is one of the best ways to increase value in your home. Deciding to remodel the kitchen using green recycled materials can add extra appeal. It also gives homeowners a good feeling knowing that once-wasted materials that are generated from glass manufacturers are now being put to good use.

“A lot of people are deciding to go green and this is definitely a green-certified product because it is 85 percent recycled glass,” says Cody Nosko, President of CCM Enterprises.

She’s talking about Vetrazzo—a slab of material made from recycled glass and concrete and used mostly in residential homes for kitchen and bathroom countertops although it can go anywhere natural stone is commonly used. The glass comes from many sources such as windows, drinking glasses, automotive glasses, laboratory glass, and even decommissioned traffic light lenses. The product is frequently compared to granite.

“It has the same good qualities as granite as far as being heat resistant, scratch resistant, and stain resistant,” says Nosko.

The product grew from a very small offering of colors to a large variety of choices. “It’s much more readily available today to meet the needs of people who are looking for green recycled products,” says Nosko.

What’s making it so popular? Its high-end vibrant look, durability, and easy maintenance.

The product comes with a 10-year warranty. It’s sealed after it is installed. Nosko recommends, “To keep it looking just like new, we recommend using a marble wax and you wax it once a year—similar to what you would do to your car.” The frequency of waxing really depends on if you use your kitchen a lot, whether you have children in the house, and how much overall wear and tear is done to your kitchen.

“All the chips that are in there are actual pieces of glass so, like granite, it can chip and it can get scratched but it is repairable. If you chip it, and you have the piece of glass, it can be put back in,” says Nosko.

But perhaps, the story that goes along with each countertop installed is yet another reason that homeowners are choosing Vetrazzo. It’s where the glass comes from that makes the product look so intriguing and unique.

“They have a color called Alehouse Amber which is obviously made up of the green Heineken bottles and the regular amber-colored beer bottles,” says Nosko.

“They have another color that’s called Cobalt Skyy which is nothing but Skyy Vodka bottles,” says Nosko.

“They have one that’s called Glass House. The glass comes from any factories that get torn down, the glass gets taken out, crushed up, and recycled,” says Nosko.

Manufacturers even came out with a limited-edition called Firehouse Red.

Nosko says the Vetrazzo color palette continues to evolve as new sources for recycled glass are found.

“There are certain colors that I would not recommend putting in a home if you are going to resell the home. Of course, it depends on the location of the home and the market of buyers that you’re going to have looking at the home,” says Nosko.

“There’s one that looks like confetti which you might want to put somewhere for fun like in a bar or in a game room or something like that but I wouldn’t recommend it for your main countertop in your kitchen,” says Nosko.

She says Alehouse Amber, Palladian Grey, and a Bistro green are good colors that homeowners likely won’t tire of and will be aesthetically pleasing to future buyers.

You’ll pay more for Vetrazzo than you will for granite. “With our company you could get into an entry-level slab of granite [for approximately] $50 a square-foot installed. The Vetrazzo will probably cost you double that to get an entry-level Vetrazzo because the material is that much more expensive and it still comes in slab form just like granite does,” says Nosko.

It’s a green product that offers a sense of pride to homeowners just knowing that as they sip a glass of wine at the kitchen countertop, the glass from the empty bottle will someday appear in another home somewhere in the world.

Written by Realty Times Staff