Real Estate Matters
www.reporterherald.com • Saturday, December 17, 2011 • Reporter-Herald
Recent changes to HARP may allow refinance ILYCE GLINK TRIBUNE MEDIA SERVICES
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uestion: My daughter is in an interest-only loan with a 30-year term. Her interest rate is 8 percent. She owes $128,000 on the loan. Fannie Mae owns the loan. She has tried to refinance her home. We thought that she could refinance her loan under the Making Home Affordable Plan, but she was told she makes too much money to get help. What would happen to her if she walks away from the home, and what are the penalties? Can she be sued for the principal, and can they garnish her wages? She has a good job, and if her wages were garnished, she would lose her employment. She is a single mom with a 10-year old son with no outside help. Answer: Your daughter does have a high interest rate on her loan based on where interest rates are today. But her loan is an interest-only loan, which means that her monthly payments are much lower than they otherwise would have been. Did your daughter take out an interest-only loan to lower her monthly payments so that she could afford to buy the home? You didn’t mention that your daughter can’t afford to make the payments. You seem to be asking what she can do to find a lender who would be willing to refinance her mortgage. Is she having a problem with the equity in her property? If the value of her home has dropped, she may not have enough equity to do a refinance. Most lenders will only allow her to borrow 80 percent of the home’s value. So if her old loan is greater than what her home is now worth, a lender won’t give her enough money in a refinancing to pay off the old debt. You might want to wait and see if your daughter can benefit from the recent changes that are being made to the Home Affordable Refinance Plan (known as HARP 2.0). It is designed for homeowners who want to refinance but whose homes are worth less than the mortgage balance. It may be that the HARP 2.0 guidelines will allow her to refinance her home. (Get more information on the program at MakingHomeAffordable.gov.) If your daughter walks away from the home, she runs the risk that the lender will pursue her for any money owed on the loan. While in some states there are laws that prevent deficiency judgments against borrowers, many states allow them. ■ See GLINK/Page E3
Homebuyers’
New Year’s Resolutions for 2012
Start the year off right when considering a home purchase ILYCE GLINK AND SAMUAL J. TAMPKIN TRIBUNE MEDIA SERVICES
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ver the 18 years that we have been writing this column, we have offered New Year’s resolutions for homebuyers and sellers, along with financial resolutions that everyone can use to start their year off right. Unfortunately, it has been another very difficult year in real estate. And while we believe that the housing market will start to stabilize in 2012, we also believe it could be another very difficult year for home sellers, agents, appraisers, mortgage lenders, home inspectors, and title and escrow companies. On the other hand, if you’re buying a home to live in or as an investment, 2012 looks like it’ll be another terrific year. Before we get to the resolutions, let’s look at a snapshot of 2011 in the real estate market: • Roughly 25 percent of homeowners are underwater or are nearly underwater with their mortgages, according to third quarter of 2011 data from CoreLogic. • New home sales remain at near record-low levels, with only an estimated 310,000 new homes sold in 2011. • Home prices haven’t moved much at all, and are still declining in some states. Overall, a number of surveys found that home prices fell by another 3 percent in 2011. • The overall number of households has shrunk by millions during the Great Re-
cession. The trend for families to double or triple up continues. • More than a million homeowners were foreclosed on in 2011. Next year, lenders are expected to process some of the foreclosure backlog, putting another million or more homeowners into foreclosure. • Mortgage interest rates fell to historic lows in 2011. As we went to press, borrowers could get a 30-year loan for less than 4 percent, a 15year loan at less than 3.25 percent and a 10-year loan for less than 3 percent. All of this assumes and excellent credit and at least 20 percent equity in the property. • Despite ultra-low interest rates, millions of homeowners remain in financial jeopardy, unable to afford their payments and unable to refinance because of declining or negative equity in their homes. • Starting December 1, 2011, the federal government introduced a new and improved version of the Home Affordable Refinance Program, now commonly known as HARP 2.0. Up until now, only 70,000 underwater homeowners have been able to refinance under HARP. Supposedly, the new and improved program will encourage lenders to do more in this area. Nevertheless, most housing experts are skeptical that this version of the program will work better than the original one. And as with all of the Making Home Affordable programs, participation is entirely voluntary for lenders. • There’s still no consensus on what to do about Fannie Mae and Freddie Mac. Nearly a year ago, the government was required by law to introduce a plan on what to do with these secondary market behemoths. But political infighting and the depressed
housing market has kept any new ideas from taking root. Once again, we’re starting a new year with a less than optimal housing market outlook. Still, if you’re hoping to buy a home in 2012, here are a few New Year’s resolutions you might want to make:
behavior so that your credit score rises. The best thing you can do? Pay your bills on time and in full each month. The next-best thing you can do is maintain four open and active lines of credit. Each credit reporting bureau offers good credit behavior tips for free on its website, or you can go to MyFico.com. (Full disclosure: I contribute real estate posts to the Equifax Finance Blog, where Equifax’s credit experts blog about credit trends and information.)
ate a great deal for yourself. Yes, you are allowed to negotiate with lenders and ask them to give you a better deal.
4. CREATE A GREAT HOME BUYING TEAM
Whether you’re buying investment property or a home 1. PULL A COPY OF YOUR to live in, you’ll want to creCREDIT HISTORY AND ate a team of real estate proCREDIT SCORE fessionals who can help you find the right property, at the Mortgage lenders have beright price, on the right come extremely conservative terms, without any and restrictive in deciding headaches. which mortgages will get funded. Lenders will pull The team should include a 3. SHOP AROUND FOR credit scores from each of great real estate agent, mortthe three credit reporting bu- THE BEST LOAN gage lender, real estate attorreaus (Equifax, Experian and ney, tax preparer (with expeEven though the federal Trans-Union) and then use government is backing more rience in investment real esthe middle score to detertate if you plan on buying rethan 90 percent of all the mine your loans interest rate loans through Fannie Mae, al estate as an investment) and terms. You need to know Freddie Mac, FHA, VA and and real estate inspector to that information ahead of start. Residential real estate USDA, it pays to shop time. Go to AnnualCredit investors will want to add a around. Make sure you talk Report.com and receive a to at least four or five lenders 1031 exchange professional free copy of your credit histo- before you sign your applica- and commercial inspector (if ry and then pay for your cred- tion, including a “big box” appropriate) to the mix. it score (about $9). You can lender, a small local lender, a Having the right team in also go to each credit report- credit union, a mortgage bro- place will go a long way ing bureau or MyFico.com ker and an online lender. Use toward making your dream and purchase a copy of your the information you glean of homeownership come credit history and score, if true. from each lender to negotiyou’ve already used up your freebies.
For more information, call Glink’s radio show at 800-972-8255 on Sundays from 9 to 10 a.m., write to Real Estate Matters Syndicate, P.O. Box 366, Glencoe, IL 60022 or visit www.thinkglink.com.
2. PRACTICE GOOD CREDIT BEHAVIOR Lenders regard borrowers with credit scores above 780 as their best customers. Unless your credit score is above that level, you should work on eliminating any errors, and practicing good credit
Real Estate Matters
LPS Mortgage Monitor: Colorado 6th-best in nation COLORADO DIVISION OF HOUSING
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ccording to the October 2011 report released by LPS Applied Analytics, there were 3.9 million loans in the US that were either in foreclosure or were more than 90days delinquent during October of this year. Delinquencies were down 28 percent from the peak during October, but the foreclosure inventory remained at historic highs.
Nationally, the percentage of active mortgage loans that were non-current during October was 12.2 percent, which was down 7.5 percent from the same period last year. In Colorado, the percentage of active mortgage loans that were non-current during October was 6.7 percent, which was down 13.3 from the same period last year. Colorado's year-over-year decline in non-current loans was the eighth largest in the nation. Only Nevada,
Michigan, Arizona, California, Utah, Idaho and Wyoming showed larger declines. Only five states reported lower percentages of non-current loans than Colorado, making Colorado sixthbest in the nation for the percentage of its mortgage loans that were noncurrent during October 2011. Montana, Wyoming, South Dakota, Alaska and North Dakota reported lower percentages of non-current loans during October.
Buying a home that needs work? Call the experts in FHA 203(k) renovation financing. An FHA 203(k) mortgage allows you to finance both your home purchase and renovation with a single loan. Call now to learn more. Vivian DeVoe, VP Mortgage Banker, NMLS#269876, 970-227-4702 Loans and rates subject to credit approval. Owner-occupied residences only. FHA conditions and restrictions apply.
LPS Mortgage Monitor is an indepth report of mortgage industry performance. The monthly report is based on data from the company’s market-leading repository of loan-level residential mortgage data and performance information, including more than 40 million active loans across the credit spectrum. This data is analyzed by LPS experts to produce more than 30 charts and graphs reflecting both trend and point-in-time performance observations.
www.HomeStateBank.com
970-203-6100 Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm Think big
Bank small
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Saturday Reporter-Herald December 17, 2011
Saturday Reporter-Herald December 17, 2011 E3
Regional Snapshot for Loveland/Berthoud Residential September
October
November
Active Listings Previous Year Active Listings
842 1027
807 969
739 903
Sold Listings Previous Year Sold Listings
115 114
117 105
95 90
$209,275 $196,000
$215,000 $211,000
$240,000 $206,819
Average Days on the Market Previous Year ADOM
136 122
109 121
130 122
Year to Date Listings Sold Previous Year YTD Listing Sold
1079 1055
1196 1160
1291 1250
Median Sales Price Previous Year Median
Mortgage rate update 30-year fixed
This week Last week Trend
3.93%
3.95%
15-year fixed
3.26%
3.29%
5/1 ARM
2.85%
2.91%
Home & Real Estate is produced every Saturday by the Loveland Reporter-Herald.
News and Press Releases: The Reporter-Herald welcomes news on hirings, advancements, awards, classes and other information of interest to the real estate and home community. Submit information to jcody@reporter-herald.com. Advertising: For advertising information, call Dan Grassmeyer. Office: 970-635-3615 Cell: 970-214-6297 E-mail: dgrassmeyer@reporter-herald.com
H&RE Real Estate Transactions Real Estate Transactions are supplied by Prospects Unlimited Inc., 1151 Eagle Drive No. 467, Loveland, CO 80537, 667-1537.
Loveland
• Tanya Jordan from Fannie Mae, 924 Cortez Ct, Loveland, $99,900, home • Sheryl Regan from Loveland Habitat For Humanity, 2145 Sagittarius Dr, Loveland, $150,000, home • Brad & Carol Reak from David Naylor, 2515 Taft Ave, Loveland, $248,000, home • Trent & Cita Lauden from Robert Shipe, 1506 Farmland St, Loveland, $262,500, home • James Getches from Karlina White, 1156 E 4th St, Loveland, $89,000, home • Charles Zitting from Donald Archuleta, 1005 Blue Spruce Dr, Loveland, $170,000, home • Daniel & Melinda Adams from Bolt LLC, 3780 Larkspur Dr, Loveland, $209,700, home • Paradise LLC from Richard Doll, 2653 Sedona Hills Dr, Loveland, $551,000, home • Jeff Edmonds from Fannie Mae, 175 Carina Cir Unit 103, Loveland, $140,700, condo • Gayle Bishop from Arlene Gabriel, 1911 Blanca Ct, Loveland, $549,900, home • Monterey LLC from Glen Development LLC, 1062 Prism Cactus Cir, Loveland, $85,000, home • Keith & Cami Ruh-
man from Geraldine Hamrock, 3314 Apple Ave, Loveland, $195,000, home • Dennis Parker from Ralph Kemmer, 1372 Lavender Ct, Loveland, $148,500, home • Paul Goebel from Lakeshore Condominiums LLC, 4905 Hahns Peak Dr Unit 101, Loveland, $140,800, condo • David & Julie Ewert from Marian Thomas, 2425 Winter Park St, Loveland, $181,000, home • Keith & Beverly Walker from US Bank, 3245 Coal Creek St, Loveland, $152,500, home • Peter Krump from Weinland Homes Inc, 3402 Creede Ct, Loveland, $360,000, home • Bruce Hebert from James Dahlkemper, 1991 Grays Peak Dr Unit 202, Loveland, $145,000, condo • John Cohen from Barbara Gygax, 520 E 5th St, Loveland, $140,000, home • Jacobus & Kimberly Demooy from Teresa Johnson, 1126 S Tyler Ave, Loveland, $163,000, home • Christopher & Soon Schwab from Loveland Midtown Development I, 1934 Virgo Cir, Loveland, $228,500, home
Berthoud
• John Reinhardt from Jon Eggers, 2836 Center Ridge Dr, Berthoud, $620,000, home • Ivar & Donna Larson from Firstier Bank, 1216
GLINK
From Page E1
If the lender does not get fully paid off, it can take an additional step after the foreclosure and ask a judge to issue a judgment for that difference, a deficiency judgment. A borrower then runs the risk that the lender might pursue him or her to garnish the borrower’s wages or find assets the borrower might have that could satisfy what is owed. That’s what your daughter fears most because she could lose her job. So far, most lenders have not pursued borrowers after a home is foreclosed upon. But in some states, lenders can still obtain a deficiency judgment years after the foreclosure. But if the lender does obtain the deficiency judgment, not only can the lender take action against the borrower, the lender can sell that deficiency judgment to a bill collector
1st St, Berthoud, $750,000, home
Estes Park
• Patricia & Bruce Mcnichol from Droll Real Estate Holdings LLC, 2625 Marys Lake Rd Unit 19b, Estes Park, $269,000, condo • Janet & Timothy Stout from Hollis Hampton, 1213 Chasm Dr, Estes Park, $346,000, home • Mark & S French from Jason Morrison, 758 Alpine Dr, Estes Park, $650,000, home • Joan Fontaine from Tom Thomason, 855 Fawn Ln, Estes Park, $175,000, home • Trust from Patricia Kasiska, 800 Macgregor Ave Unit D2, Estes Park, $282,000, condo • David Loy from Emory Smith, 2625 Marys Lake Rd Unit N203, Estes Park, $275,000, condo • Michael Williams from Wells Living Trust, 241 4th St, Estes Park, $125,000, home • Jon & Debra Ford from Robert Amato, 843 University Dr, Estes Park, $259,000, home
420 Wyss St, Johnstown, $290,000, home • Kenneth & Joni Lafleur from Precision Home Buildings LLC, 4390 Thompson Pkwy, Johnstown, $550,000, home • Steven & Sarah Tracy from Saint Aubyn Homes LLC, 175 Glenroy Dr, Johnstown, $269,600, home
Milliken
• Michael & Patricia Row from JPMorgan Chase Bk, 780 Bobcat Dr, Milliken, $169,700, home • Victoria Lujan from Rocky Mount Invest Group LLC, 201 N Olive Ave, Milliken, $130,000, home
$161,000, home • Hillside Inc from Ridgeway Construction Services, 6165 Bay Meadows Dr, Windsor, $55,500, home • Heather Hernandez from Mastr Alternative Loan Trust 2, 600 Walnut St, Windsor, $167,000, home • Joseph & Emm Armstrong from Melody Homes Inc, 618 Lanley Dr, Windsor, $260,000, home
Foreclosures
• Borrower: Robert & Anne Park, Lender: Us Bank National Association, Amount: $289,564, Property: 5322 Getaway Dr, Berthoud, Filed: 12/05/11 • Borrower: Armando Miramontes, Lender: Gmac Mortgage LLC, • Brian & Darla Mcfee Amount: $262,909, Propfrom William Bray, 407 erty: 644 Munson Ct, Fieldstone Dr, Windsor, Berthoud, Filed: $263,000, home 12/05/11 • Daniel Dotson from • Borrower: Nicholas, Ed Duggan, 215 N 6th St, Windsor, $135,000, home Linda & Roger Harris, • Todd & Cheri Robbins Lender: Wells Fargo Bank Na, Amount: $194,402, from Saint Aubyn Homes LLC, 623 Goose Lake Ct, Property: 1222 Aspen Dr, Windsor, $298,800, home Berthoud, Filed: • Lynn & Jeanne Kleeb 12/06/11 • Borrower: Stanley from John Edwards, 1354 Mars, Lender: The Bank Saginaw Pointe Dr, WindOf New York Mellon, sor, $183,000, home Amount: $206,880, Prop• Ridgeway Services • Marvin & Rosalie Carlerty: 531 Highland Ln, son from Midtown Homes from Highland Meadows Development I, 6099 Bay Estes Park, Filed: Johnstown LLC, 4318 12/01/11 Meadows Dr, Windsor, Onyx Pl, Johnstown, • Borrower: Seon John, $277,500, home $197,900, home Lender: John E Reid As • Mark & Jamie Bailey • Logan & Allison from Highpoint Vista LLC, Trustee, Amount: Thomas from Oakwood $200,000, Property: 1220 5754 Pineview Ct, WindHomes LLC, 3761 BlackBig Thompson Ave, Estes sor, $52,000, home wood Ln, Johnstown, Park, Filed: 12/01/11 $207,200, home • Megan Borton from • Borrower: Alan AsBrandon Leagjeld, 900 • Don & Janice Burris pinall, Lender: Citimortfrom Donald Beauregard, Nantucket St, Windsor,
Windsor
Johnstown
and that collection company can pursue the borrower. First, find out whether your daughter’s state permits deficiency judgments. If it does, your daughter would be better off trying to sell the home, even if she does it in a short sale. In a short sale, there is a better chance that the lender will agree to waive any right to pursue a deficiency against her. Whether your daughter decides to walk away from the house or pursues a short sale, her credit score and credit history would suffer. According to FICO, a major player in the credit score industry, a borrower who is 30 days late on his or her mortgage will see a drop of 60 to 100 points in his or her credit score. If the delinquency goes to 60 or 90 days, there are additional drops in the credit score. And, if you go the short sale route, you might see an additional drop on your credit score, especially if there is a deficiency reported on the sale. If your daughter has a credit score
of about 720 and she walks away from the home, she should expect a drop in her credit score to about 570; if she goes the short sale route, her credit score could drop by the same amount depending on the deficiency. But let’s hope there is a refinance in your daughter’s future so she can afford to stay in her home. What she needs to do now is talk to a good mortgage lender or mortgage broker to evaluate her options. Question: In 2003, I refinanced my home with a $100,000 15-year mortgage at 5.25 percent. My balance now is about $50,000 and I have six years left on my loan. I am considering two options: to refinance the current balance or take out $100,000 in equity in a new refinance loan. Which is the better choice? Answer: You can try to refinance your current loan, but you may find that the costs to refinance the $100,000 might be high relative to the benefit you will receive. While you might get a big break on the interest
gage Inc, Amount: $421,429, Property: 730 East Ln, Estes Park, Filed: 12/05/11 • Borrower: William Jesser, Lender: Us Bank National Association, Amount: $140,270, Property: 930 N 1st St, Johnstown, Filed: 12/07/11 • Borrower: Kevin & Jeanie Coleman, Lender: The Bank Of New York Mellon, Amount: $314,016, Property: 20064 Cactus Dr, Johnstown, Filed: 12/07/11 • Borrower: Robert Putnam, Lender: Pnc Bank National Association, Amount: $91,030, Property: 1630 Jackson Ave, Loveland, Filed: 12/01/11 • Borrower: Maria Cano Rodriguez, Lender: Metlife Home Loans, Amount: $180,032, Property: 938 22nd St Sw, Loveland, Filed: 12/05/11 • Borrower: Norman Hardin, Lender: Bank Of America Na Successor, Amount: $144,598, Property: 1236 Lavender Ct, Loveland, Filed: 12/05/11 • Borrower: Dustin Thompson, Lender: Metlife Home Loans, Amount: $189,021, Property: 3060 Champion Cir, Loveland, Filed: 12/05/11 • Borrower: Paige Schmidt, Lender: Gmac Mortgage LLC, Amount: $49,623, Property: 2717 Mango Pl, Loveland, Filed: 12/05/11 • Borrower: Donald & Barbara Bagwell, Lender: Jpmorgan Chase Bank National Assoc, Amount: $113,980, Property: 2515 Hillrose Ct, Loveland,
rate (your rate on a 10-year mortgage could be as low as 3 percent), a good share of your monthly mortgage payments now go to pay down the balance on your loan. You are over halfway into your loan term. At least half of every payment goes toward paying down your debt. With a new loan, you’d start paying mostly interest and would add years to the loan term. The question is why would you want to do that? If you need money to fix or upgrade your home, then you can make a decision about whether to take out a larger loan on your home. You should talk to a good mortgage lender or broker to determine whether you would be able to take equity out of your home. In the current state of the housing market, you’d want to have a good sense of your home’s value. You’d probably want to make sure that your new loan won’t exceed 80 percent of the home’s market value. These days you want to avoid taking out an FHA loan or even a loan with private mortgage insurance.
Filed: 12/05/11 • Borrower: Johnnie Morgan, Lender: The Bank Of New York Mellon, Amount: $162,948, Property: 4463 Sunshine Cir, Loveland, Filed: 12/06/11 • Borrower: Sheri Thomas, Lender: Jpmorgan Chase Bank National Assoc, Amount: $109,016, Property: 1566 Oak Creek Dr, Loveland, Filed: 12/06/11 • Borrower: Elias & Irma Orozco, Lender: The Bank Of New York Mellon, Amount: $167,294, Property: 624 E 41st St, Loveland, Filed: 12/06/11 • Borrower: John Duggan, Lender: Cenlar Fsb, Amount: $171,877, Property: 629 24th St Sw, Loveland, Filed: 12/06/11 • Borrower: Jerry Hoffman & Shelley Harvey, Lender: Wells Fargo Bank Na, Amount: $221,790, Property: 2716 Breckenridge Pl, Loveland, Filed: 12/06/11 • Borrower: Bethanie Hensel-Vanzant, Lender: The Bank Of New York Mellon, Amount: $148,256, Property: 758 S Juniper Ct, Milliken, Filed: 12/01/11 • Borrower: Daniel & Deanna Greenwalt, Lender: Deutsche Bank Trust Company Americas, Amount: $467,662, Property: 1735 Ridge West Dr, Windsor, Filed: 12/05/11 • Borrower: Raymond & Christine Grilley, Lender: Public Service Credit Union, Amount: $20,672, Property: 911 Mesa Ct, Windsor, Filed: 12/07/11
FHA loan costs and loans with mortgage insurance have gone up substantially and you have to factor in these costs in deciding whether to take out a higher loan on the property or even if you have the ability to take out money from the property and get a larger loan on the home. Back in the boom days of the stock market, we would get questions as to whether homeowners should borrow against their homes to invest in Internet stocks. At the time, we told people that it probably wasn’t in their best interests to take out home equity to invest in stocks of any sort, let alone Internet start-ups. Later, people wanted to take out money from their homes to invest in those same homes, buy cars, take vacations or pay for their kids’ education. Borrowing against your equity carries risks. You need to have a good understanding of what you need the money for, and weigh the risks of taking the equity and using it elsewhere.
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Saturday Reporter-Herald December 17, 2011
Failed investment property is more than foreclosure STEVE BUCCI BANKRATE.COM
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ear Debt Adviser: I am emailing you in hopes of getting some honest advice. I recently owned a condo, and I financed it with two mortgages. I used a first mortgage and a home equity loan/line of credit. This was not my primary residence. I’m one of the many people who tried to rent out my condo because I couldn’t sell and break even. Long story short: The bank foreclosed three weeks ago. I continue to get threatening calls from the bank concerning my equity loan. So my question is: What should I do about the loan balance? I don’t have the money to pay it off. Will they take me to court, garnish my wages or just keep calling me? What’s your advice? Thanks in advance. — Adam Dear Adam: If this wasn’t your primary residence, then I’ll assume you bought this condo as an investment hoping to make money. When an investor plunks down money on an asset, it is often said they are making a bet. In your case, you bet and lost. As a result, the rules that govern unpaid mortgage debts in your situation are different from those of a homeowner who buys and loses a home he or she bought as a primary residence. Expect your lender to come after you for the deficiency balance after the property is sold. Yes, they will sue you and go after wages to the extent allowed by state law. If you were in a nonrecourse state (Alaska, Arizona, California, Connecticut, Florida, Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah and Washington), you could not be sued for the deficiency. In addition, state laws vary on what actions lenders can pursue in collecting from a homeowner for deficiency balances once a home has been foreclosed upon, is sold in a short sale or otherwise falls short of the full loan balance due.
In your state of Georgia, the lender must file an application to collect a deficiency balance with the court along with proof the home has sold. The lender must do this no later than 30 days after the home sells in order to collect the debt. If more than 30 days have expired after the sale of the home, the application would be thrown out by the court. The trouble is, banks may hold on to the home for months or years after a foreclosure before the home is sold. As a result, it is important to stay in touch with your lender or a Realtor so you will know when the home is sold and if the 30 days is up. Any conversations with the bank will likely continue to be unpleasant because you don’t have the money you owe them. Still, it is to your advantage to keep the communication lines open. As to what you might do about the debt, my suggestion is to try to come to some sort of payment plan with the bank. Also review your other assets to see if you can borrow on them or sell them outright to make a dent in the bill. I spoke to Matthew Harvey, supervisor for the Homeownership Preservation Foundation at Take Charge America. He recommends seeking the advice of a real estate or bankruptcy attorney to learn all the possible legal ramifications and your options due to the foreclosure. Remember, you will probably have tax considerations on any forgiven amounts for your first or your second mortgages. The Mortgage Forgiveness Debt Relief Act of 2007 does not apply to investments or second residences. So, even if you escape the bank’s collectors, you’ll still have to deal with the Internal Revenue Service to pay a hefty tax bill as a result of the foreclosure — and the IRS is a creditor you don’t want to owe. The bottom line is you can almost certainly expect your lender to attempt to collect the deficiency balance on your mortgages. Try to come to terms with the bank or explore your legal remedies.
Top priority in dream home: Energy-efficiency MCCLATCHY-TRIBUNE
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espite problems plaguing the U.S. housing market such as tumbling values, record foreclosures, and tight credit for buyers, 74 percent of Americans believe home buying is a good investment. And 81 percent said it’s still part of the American dream, according to a new survey from Yahoo! Real Estate. The survey, which polled 1,500 current and aspiring homeowners, plus renters, found that while few (13 percent) currently live in their dream home, a majority (55 percent) feel it’s attainable. American optimism about housing as a good investment comes despite years of market turmoil that have had a wide impact on society. One in three Americans knows someone who has experienced a foreclosure, according to the study.
MOST WANTED HOME FEATURE: ENERGY EFFICIENCY While having a large room with a view is still desirable, the dream home is no longer a supersized McMansion. Our survey found that a “green,” energy-efficient home built with “sustainable” materials tops the ‘most wanted’ list. No longer in desire for home buyers: gated communities, urban locations, and castle style homes.
percent felt the risk of too many unknowns is a major concern for buyers.
GOVERNMENT SHOULD DO MORE TO HELP HOMEOWNERS The survey found that most Americans think the government should be doing more to help out homeowners with 51 percent saying the government should pass further legislation. When asked how much of an influence will the 2012 Presidential Election have on the housing market, 31 percent believe that it will have a large influence Democrats fare somewhat better than Republicans as the party most receptive to helping homeowners weather the downturn.
REASONS FOR MOVING Renters are more likely to move for more space (56 percent), while homeowners were likely to move for a home that better suits their life stage (42 percent).
MOST RENTERS PREFER TO OWN, BUT CASH IS A BIG BARRIER TO PURCHASE While 47 percent of renters believe they will own their dream house one day, money for a down payment is the biggest barrier. 19 percent of renters say the reason they rent is because they don’t want the hassle of fixing things in a home themselves.
DESPITE FORECLOSURES, PEOPLE STILL WANT TO BUY FLIP THIS HOUSE While the rise in foreclosed homes has left a lot of Americans waiting years to buy again, most (65 percent) are open to buying a foreclosed property — noting key benefits of purchasing more home for less money. However, 42
A majority, 80 percent, of buyers in today’s market are looking for a primary residence and nearly half, 45 percent, of those who plan to invest hope to capitalize on the market and flip the property for a profit.
H&RE Featured Home Plan
Landry has European ambiance ASSOCIATED DESIGNS
doors. Nearby are another deep storage room, a large utility room, a full bathroom rick veneer and classic and a guest suite with a walkkeystone arches lend a in closet. A door into the European ambiance to three-car garage is through the Landry. This home offers the utility room at the end of more than 3,300 square feet the hall. of indoor living space, plus On the opposite side of the three outdoor patios, and a Landry, the owners’ suite fills three-car garage. the rear, and secondary bedA recreation room over the rooms are up front. In addition garage is the only living space to a luxurious bathroom with a on the second level, so the rest spa tub and oversized shower, of this plan could easily be adapted for wheelchair accessibility. Ceilings are lofty, starting with the 12-foot-high covered porch, foyer, and dining room, to the foyer’s right. Both the foyer and the dining room flow into the even loftier vaulted living room. Light washes down into this large open space through skylights, and more spills in through a stack of wide windows. A long conversation bar rims the kitchen, which is otherwise open to the living room. Working at the kitchen sink, you can talk with people seated at that bar or in the living room, while keeping an eye on the nook, patios and backyard as well. Other kitchen amenities include: lazy Susan shelving, a work island with built-in cook top, and two pantries. In the nook, a desk and shelves hide behind folding
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the suite boasts two large walk-in closets, one nearly twice the size of the other. A French door leads out onto a covered patio that could be private. Visit AssociatedDesigns.com for more information or to search our home plans. A review plan of the Landry 30665, including floor plans, ele-
vations, section, and artist’s conception, can be purchased for $25. Our home plan catalog, featuring more than 550 home plans, costs $15. Both are available online, by mail or phone. Add $5 s/h. Associated Designs, 1100 Jacobs Dr., Eugene, OR 97402, (800) 6340123.
Saturday Reporter-Herald December 17, 2011 E5
Holiday Light
fused plugs, preventing sparks in case of a short circuit. Ditch old strands of lights that don’t have fuses and get a set of newer, safer lights. • If bulbs have burned out, replace them right away, but make sure you use the correct wattage bulbs. • Water and debris can get into outdoor sockets, so make sure outdoor lights are plugged into a ground fault circuit interrupter outlet to reduce the risk of shorts and up a single strand of shocks. lights, carefully check • Keep an eye on exthem for cracked cords, tension cords, as they frayed ends or loose can occasionally overconnections. heat. Just touch-test • The combination of the cord. If it’s hot, unshorts in electrical plug it. lights and a tinder-dry • Don’t use tacks, tree can be deadly. nails or screws to hang There are 250 Christlights, which can pierce mas tree fires and 14 re- the cable and become lated deaths each year, electrified. Use insulataccording to the U.S. ed hooks instead. Fire Administration. So • When running exkeep your tree well-watension cords along the tered. Not only will it ground, make sure to stay fresh and green, elevate plugs and conbut it might also keep nectors with a brick to your house from burnkeep snow, water and ing down. debris out of the con• Modern lights have nections.
Safety Tips
ADAM VERVYMEREN MCCLATCHY-TRIBUNE
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house lit up with Christmas lights is a beautiful sight to behold. But stringing lights across your roof and around your home can be a real safety hazard if you’re not careful. So before you flip the switch to dazzle friends and family with your spectacular light show, take a few moments to run through a quick safety checklist. • Before you string
• Tape down any ground-level extensions cords to prevent people from tripping over them. • Check to make sure lights have been rated by a testing laboratory. You can see a list of federally recognized labs on the Occupational Safety & Health Administration’s website. • Not all lights are rated for outdoor use. Indoor lights often have thinner insulation, which can become cracked and damaged when exposed to the elements outdoors. So make sure the ones you string up on the house belong out there. • Don’t leave Christmas lights running when you go to bed at night or when you leave the house. • When you put your lights back into storage after the holidays, make sure to put them in a well-sealed container to prevent possible water damage and to block hungry rodents looking to turn the cords into lunch. My final advice? Be careful with ladders.
Ask Angie: Finding the best replacement windows ANGIE HICKS MCCLATCHY-TRIBUNE Dear Angie: What replacement windows are the best in terms of looks, durability, warranty and reasonable price? I don’t want wood but like the wood-like looks, so I originally considered fiberglass. That turned out to be quite expensive so I’m now looking for an alternative, perhaps a reasonably priced vinyl or a more affordable, but good quality fiberglass. — Misha K., Potomac, Md. Dear Misha: If you want to add new windows, but still want the look and feel of wood, fiberglass is probably your best bet; but as you found out, it’s not inexpensive. You do have options, though. High-end vinyl windows have improved in aesthetics and are less synthetic looking than before, plus they often outperform their fiberglass counterparts in terms of energy efficiency. They still, however, don’t offer the look or feel of wood. You might be better off adding highquality secondary storm windows with a low-emissivity glass to your existing windows, if the look and feel of wood is truly a high priority. They’ll offer the energy performance of many replacement windows, and often, improved noise reduction. Storm windows can be a good option for homes in a historic district because of their flat, narrow profiles and relative concealability. There are a variety of composite windows on the market that also look like wood, but you’ll likely find the cost is similar to fiberglass. Affordability is almost always a concern when shopping for windows, but it’s important to avoid low-performing vinyl windows that won’t offer long-term energy savings. You want a vinyl window with a good air infiltration rating. The minimum standard by the American Architectural Manufacturer’s Association (AAMA) is leakage of less than .30 cubic feet per minute. However, .10 or lower is ideal for cold-weather climates. The lower the number, the better.
That is also true of the U-value, which measures the window’s rate of heat loss. To qualify for the Energy Star federal tax credit of 10 percent of the cost of replacement windows up to $200 doublepane glass windows require a U-value of .30 or lower. You also want a window with a design pressure rating between 35 and 45. The design pressure rating represents how well the window drains water and how strong the window frame is. In this case, the higher the number, the better the frame, the more rain drainage it can withstand, and the more wind pressure it can endure. When you’re shopping around for windows, get bids from at least three different reputable contractors. The salesperson should be able to bring samples of his or her products and provide you with pricing and the ratings for each window type in writing, so you can make a decision that fits within your style and budget. Avoid hiring companies that won’t provide the AAMA ratings.
‘Going out of town? Don’t miss your local news.
www.reporterherald.com/e-edition w
An ENERGY STAR home is a better built home ®
Northern Colorado ENERGY STAR® Homes
NoCOEnergyStarHomes.org
www.newmidtownhomes.com • (970) 456-4600 • e-mail sales@newmidtownhomes.com • Midtown Homes at Boise Village North is centrally located in Loveland, just minutes from I-25 and US Highway 34 and is a unique opportunity to find new home with prices starting in the $170’s. The community is connected to the city trail system for great recreational opportunities and is minutes from Downtown Loveland. At Boise Village North you can find homes with low maintenance yards as well as homes with large yards and up to four car garages. The sales office is open 10-6 daily at 1899 E 11th St, Loveland, CO. • Midtown Homes at Rocksbury Ridge is a unique place where you can find quality construction at affordable prices with homes starting in the $190’s. Rocksbury Ridge is a close knit community in a subdivision with lots of amenities including several miles of walking trails, a private community lake, as well as abundant greenbelts and common areas. Rockbury Ridge has convenient access as the first subdivision ½ mile east of Interstate-25 into Johnstown at Exit 252. Model home is at 4312 Onyx Place, Johnstown, CO and is available to view by appointment. • Thompson Overlook is one of the only subdivisions in Colorado to offer an entire subdivision of Energy Star Qualified homes with prices starting as low as the $170’s. Our MidtownGreen building program offers the government backed Energy Star label, lower utility bills, lower maintenance, and better protection against cold, heat, drafts, moisture, pollution, and noise. Thompson Overlook offers 6 floor plans including ranch, multi-level, and duplex homes on a variety of lots ranging from small, lot maintenance lots to large single family lots. Visit Thompson Overlook at 2208 Sopris Circle, Loveland, CO and is available to view by appointment.
The Overlook at Mariana At home in The Overlook, you’ll feel out in the country but a mere 10 minutes away is the Thompson Valley Towne Center, home to a large supermarket, a variety of restaurants, and a multitude of services you’ll be glad are close by. Travel 10 minutes in a slightly different direction and you’re in downtown Loveland with interesting antique stores, funky boutiques, a host of restaurants, and the historic Rialto Theatre for your evening entertainment. For serious shopping, the Centerra complex at Highway 34 and I-25 is only 20 minutes from The Overlook where you can find just about everything you need. Located off West Colorado Road 20, West 1st & Cove Drive in Loveland.
As a home buyer we know you will feel and experience the difference. An ENERGY STAR® home provides you the home owner: • Better Comfort • Healthier Indoor Air • Enhanced Durability • Lower Energy Bills Visit these and other ENERGY STAR® Builders today
Learn more at NoCOEnergyStarHomes.org
Home how-to for the simple fixer ARTICLE RESOURCE ASSOCIATION
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ventually, that household project that you have been putting off cannot be avoided any longer. But if you’re like most homeowners, you will quickly give up on the DIY route and settle for something less daunting, like calling in a professional. Before you sell yourself short, consider following some of these simple DIY do’s and don’ts to make tackling your home improvement project a little more manageable and affordable.
DO RECOGNIZE YOUR LIMITS It’s OK if you can’t handle the entire kitchen remodel on your own. Identify what components you can tackle solo before getting quotes for the project. Handling things like paint jobs and new cabinet hardware can help bring down overall costs. More often than not, the right tools also make a big difference. Also, it’s OK to ask a friend or family member for help — two hands are better than one. Just be sure to return the favor when the time comes.
DON’T UNDERESTIMATE THE POWER OF GLUE From installing tile backsplashes and in-wall cabinets to sealing gutters and downspouts, highperformance adhesives are a must-have for every home. The Loctite brand is suitable for multiple DIY uses, including upgrades and repairs. So forget about tossing that broken lamp to the curb or replacing that loose drawer handle. A little glue goes a long way. To learn more about what adhesive is right for your project, visit the Loctite Product Advisor at www.loctiteproducts.com/product _advisor/.
DO DEVELOP A MENTAL PICTURE Before rushing into home projects, take the time to really envision what you want out of the renovation or update. Is the goal to make your kitchen more modern? Are you looking to maximize space in the bathroom? Pictures can help bring these goals to life. Stock up on magazines and pull out any photos that capture the essence of your project.
DON’T RUSH You are all familiar with old adage “haste makes waste.” Haste also can be costly. Do your homework before tackling home updates. Decide where to begin and carefully plan each step of the process. This includes taking accurate measurements, using effective tools and comparing prices on building materials. Keep in mind that you won’t do yourself any favors by shrugging off advice or not planning in advance. Remodeling industry professionals report that between 25 and 30 percent of their work comes from fixing DIY debacles. While there are sure to be a few hiccups along the way, you will discover a new sense of pride and empowerment once your project is completed.
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Saturday Reporter-Herald December 17, 2011
Customize your wreath CAROL O'MEARA CSU EXTENSION
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ant a wreath that’s the perfect compliment to your decor this season? If the store bought circlet seems somehow dull, jazz up that holiday symbol with personal touches that transform it from blah to ahhh. Wreaths with character are a snap, once you start thinking outside the pinecone, bow, and
bell box. Whether you do it yourself or have a florist do it for you, customizing your wreath livens up your décor with whimsy, adds formal flair, or gives visitors a peek into your personality. Grab some florist wire, a hot glue pan and get creative. Here’s how. Get pizzazz by adding contrasting textures. Seeded eucalyptus or magnolia leaves smooth spiky edges, holly adds a traditional touch, or long strands of bear grass provide movement.
Think in terms of shiny versus matte or soft versus hard to make things interesting. Bundles of cinnamon sticks tied with ribbon add seasonal accent, and dried fruit slices provide color. To make your own dried fruit slices, you’ll need a dehydrator, said Anne Zander, Family and Consumer Sciences Agent with Colorado State University Extension. “Drying fruit in the oven takes too much energy, since it’s on for eight to twelve hours. Plus you’d need an oven that can be turned down really low, lower than 200degress, and have a fan blowing into it the whole time so the fruit doesn’t burn.” Slice oranges, limes, lemons or other citrus into quarter-inch thick slices, laying it on its side so the slices include all the segments. Keep
slices uniform for best drying results; if the thickness varies greatly, some slices won’t dry evenly. Dehydrate the fruit for eight to twelve hours, checking slices for doneness. The finished product should be dry but still pliable. Finding accessories to primp your wreath can be as simple as walking through the neighborhood. Look for dried flowers, berries, or unusual evergreens. Seed pods of trees such as long, slender catalpa, curly honey locust or bean-like redbud offer change from traditional pine cones. Carol O’Meara is with CSU Extension in Boulder County. Contact her at 303-678-6238 or comeara@co.boulder.co.us.