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I have been asked and have agreed to serve on the Realtor Advisory Board for the Tennessee Housing Development Agency (THDA). I am excited about this opportunity and look forward to working with THDA in streamling current programs and developing future programs to assist low to moderate income home buyers in Tennessee. THDA offers many programs to assist low to moderate income home buyers and existing home owners through downpayment assistance programs, home owner education classes, foreclosure prevention assistance, etc.

Following is information about one of those programs you may not be familiar with. If you have experienced a job loss or substantial pay decrease and are having difficulty meeting your mortgage obligations, there may be help through THDA and the Keep My Tennessee Home - Tennessee's Hardest Hit Fund program. The following information outlines the program and qualifications necessary to be considered for the program. If you or someone you know needs assistance and feel these qualifications are met, please contact me and I will have a loan officer who is participating in the program contact you.

http://www.thda.org/

The Keep My Tennessee Home - Tennessee’s Hardest Hit Fund program provides loans to unemployed or substantially underemployed homeowners who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure. Tennessee is one of 18 states plus the District of Columbia that are receiving Hardest Hit Funds due to having an unemployment rate that is higher than the national average. The Keep My Tennessee Home program will make homeowners’ payments on their mortgage and mortgage related expenses such as property taxes, homeowner insurance, homeowner association dues,and/or past-due mortgage payments that accumulated during a period of unemployment. The Hardest Hit Fund is being administered in Tennessee by the Tennessee Housing Development Agency (THDA).

Homeowners who qualify for financial assistance may receive up to 18 months of monthly mortgage payments and/or funds to pay past due mortgage payments to bring the mortgage current; these funds are paid directly to the loan servicer/lender.

To qualify for the Keep My Tennessee Home program, a homeowner must meet the following eligibility requirements and the homeowner’s servicer must be participating in the Keep My Tennessee Home program:

• Be unemployed or underemployed (a 30% reduction of income) through no fault of their own. The event or incident which results in unemployment or substantial underemployment must have occurred after Jan. 1, 2008.
• Have a mortgage for a single-family home or condominium (attached or detached) in Tennessee that they occupy as their primary residence. This includes manufactured homes on foundations permanently affixed to real estate that they own.
• The combined amount of your mortgage principal, interest, taxes and insurance must be greater than 31% of your household income after the job loss/reduction of income.
• Not have more than six months' reserves of liquid assets, that is, liquid assets equal to six months of their mortgage principal, interest, taxes and insurance.
• Have a household income less than $74,980.
• Have a total unpaid principal balance not exceeding $226,100.

Above are the basic eligibility criteria. Meeting these criteria does not guarantee eligibility for the Keep My Tennessee Home program.

NOTICE: If anyone seeks to charge you a fee to help you with applying for assistance from this program, please report this immediately to your local counseling provider and/or the Tennessee Housing Development Agency.

For more information on this program or others, feel free to contact me or visit the THDA website at http://www.thda.org/. Full Article

Owen and I enjoy assisting our clients purchase their dream home and we have been doing so for quite a few years now. It’s such an exciting adventure to search for that “perfect” home. If you have ever bought a home, I’m sure you know what I’m referring to. Remember how excited you were to find just the “right” home and falling in love with it – your dream come true. But… Wait, don’t let your emotions get in the way of a rational decision. Here are a few questions to answer before you make the commitment to purchase that dream home.

1. Price. Can you really afford it? Your loan officer says you can qualify to purchase the home, but are you comfortable with the monthly payment. What will the utilities be? Is there a home owner’s association and if so, how much a month are those fees? Do you have enough in reserve to cover your down payment and closing costs? What about repairs or updates you want to make? Do you have the wherewithal to do them? The last thing we want is for a client to purchase a home and become “house poor.” In other words, you don’t have enough money to go out to eat, or to a movie, or for general maintenance on the home, or replace or repair appliances, etc. I’m sure you get the picture.
2. Condition. Be sure to consider the condition of the home. If the floor plan is perfect, but there are many repairs/upgrades that need to be done, is it worth it? A fixer-upper home with a lot of potential can be a money trap in the long run - not to mention the stress of making the repairs while living in the home. A new roof or new heating/air unit can be very costly.
3. Size/Layout. Is the flow of the home right for your lifestyle and are the rooms the right size? Is one bath enough? If not, and you like everything else about the home, what will it cost to add the second bath? How much inconvenience will you and your family experience while construction is going on to add the additional bath. Again, is it worth it?
4. Resale Potential. You absolutely love the home and plan to live in it forever. However, statistics show that most people move to a new home every 5 to 7 years. If you decide to sell your home or, because of unforeseen circumstances had to sell it, how easy will it be to find a buyer who will want to purchase it? Will that steep hill in the backyard be a hindrance?
5. Ammenities. Some people fall in love with expensive home amenities that seem attractive and desirable at the time, but later prove to be more headache and costly than anticipated. Do you really want a swimming pool? Would a neighborhood pool be more desirable? What about those commercial-grade built-in kitchen appliances? Expensive hardwood floors?
6. Location. Be sure to check out the neighborhood you are considering. Are you comfortable with the schools? Is it close to places you go on a regular basis? If you have children, are there children in the neighborhood for them to play with?

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According to a recent poll conducted on behalf of the National Association of Home Builders, Congressional hopefuls need to listen to the voice of the people in their districts.  73% of voters are opposed to eliminating the mortgage interest deduction and 68% of voters say they are less likely to vote for a candidate who proposes to abolish the mortgage interest deduction.  "With the 2012 election season in full swing, candidates runing for the White House and Congress would be wise to heed the will of the American Voters, who have expressed broad support for government policies that encourage home ownerhsip and oppose efforts to make it more difficult to get a home loan and tamper with the mortgage interest deduction," says Celinda Lake, president of Lake Research Partners.

Among other key findings in the report, 96% of home owners are happy with their decision to own and 84% who are "underwater" or owe more than their home is worth, expressed the same sentiment.

Job uncertainty, saving for a downpayment, and closing costs are reported to be the biggest barriers to home ownership.

Even in a depressed housing market, the American dream of homeownership remains a core American value.


Click Here to Read the Entire Article Full Article

Due to the high humidity in the Memphis area, we normally say you either have a termite contract or you have termites or... You may have both!  Termites cause thousands of dollars in damage to homes and in some cases make a home unsellable.  Homeowners are unaware there is a problem until the damage is already done.

Here are some tips to prevent termites from attacking your home:

• Repair any roof or plumbing leaks as soon as possible. These leaks can allow termites to survive above ground in a house.
• Eliminate any wood-to-soil contact around your foundation and remove wood debris near your home.
• Prevent mulch and soil from touching the siding of your home. They make it much easier for termites to enter.
• Store firewood away from your home.
• Use mesh screens on all windows and doors, as well as in ventilation openings for attics and crawl spaces.
• Seal nail holes and cracks in exposed wood to help prevent easy access by drywood termites.
• Contract with a professional pest control company to regularly inspect your home. This will help detect termite activity and allow for prompt and proper treatment.

Click on the link below to find out more information on identifying and preventing termite infestation...

Termites - The Silent Invaders Full Article

Due to tighter requirements from lending institutions, it is harder to qualify for a home loan than in years past making the American Dream unreachable for many consumers.  However, if you are renting and plan to buy a home for the first time later this year, your chances of qualifying for a mortgage might be better if you’ve had a history of paying your rent on time, the New York Times reports.

According to an article earlier this week in the New York Times, last year Experian, one of the three leading credit-reporting companies, added a section to millions of credit reports showing on-time rent payments, which had a positive impact on the credit scores to some on-time rent payers.  Now the other two credit reporting companies are following suit.

CoreLogic and FICO recently announced they are also adding a score that reflects payment histories from landlords, The New York Times reports.

Evidence of positive rental payments could be a plus for consumers, Joanne Gaskin, FICO’s director of product management global scoring, told The New York Times.

Nearly half of high-risk consumers saw an increase of 100 points or more after their rental history was added to their credit report, says Brannan Johnston, the managing director of Experian’s rent bureau. Consumers with average or higher credit scores, on the other hand, did not see any major difference to their scores.

For former home owners who lost their homes to foreclosure, may be able to rebuild their credit histories more quickly now by showing they are “very responsible renters,” Tim Grace, senior vice president of CoreLogic, told The New York Times.

Read the entire article from The New York Times ...

New York Times Article Full Article

I just read an article in today’s Memphis Business Journal. According to the article, “2012 looks to be another year of opportunity for the few who can afford to buy or refinance a home.” Interest rates are incredibly low, but due to the more stringent loan requirements fewer people can actually afford to take advantage of the rates. However, investors and home buyers who have adequate income and good credit are able to take advantage lower home sale prices plus great interest rates. In spite of the more stringent loan qualification requirements though, the Memphis market has seen an increase in home buying activity. Pending sales are up.

Loan officers I have talked with say they are finding themselves assisting more clients with credit repair issues than ever before. Given the current economy, that makes sense. Because of a lost job or decrease in income, many people have resorted to credit cards to pay bills. Many consumers must pay off or pay down credit cards to qualify for purchasing a home.

Some consumers confide they are fearful to purchase a home. They have seen home prices decline, and thus don't want to run the risk of purchasing a home that may be worth less when they decide sell. In my opinion owning a home is still a much better investment than renting. There is much to be said for pride of ownership. I think the housing market will see increases in the future. Consumers who can purchase in today's market and decide not to, may regret their decision when interest rates and home prices begin to increase.

“2012 looks to be another year of opportunity for the few who can afford to buy or refinance a home.

The average rate on the 30-year fixed mortgage fell to 3.91 percent this week, Freddie Mac said Thursday, Jan. 5. That matches the record low reached two weeks ago.

The average on the 15-year fixed mortgage ticked down to 3.23 percent from 3.24 percent. That’s up from 3.21 percent two weeks, also a record low.

Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note, which fell below 2 percent this week. They could fall even lower this year if the Fed launches another round of bond purchases, as some economists expect.

Still, cheap mortgage rates have done little to boost the depressed housing market. For eight straight weeks at the end of 2011, the average fixed mortgage rates hovered around 4 percent. Yet many Americans either can’t take advantage of the rates or have already done so.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don’t want to sink money into a home that they fear could lose value over the next few years.”

– The Associated Press Full Article

Owen and I like to provide helpful information to our clients and friends. I just read about a service for homeowners provided by Lowe’s - and it's absolutely free. We have been members of Lowe’s Realtor services for years and have enjoyed the benefits for both our clients and us as Realtors. Now Lowe's has created a service that is geared directly toward homeowners.  Registration is easy (I just registered) and I think can be a benefit. By going to the website mylowes.com and creating a MyLowe's account (click on the MyLowe's button at the top left of the web page), you can organize and keep up with all your home improvements/renovations. This is a great way to keep up with renovation expenses. There are many other benefits too, but one that grabbed my attention is accomplished by creating and managing a home profile. Homeowners can create a virtual version of their home, adding and collecting important info, such as home specs, room dimensions or project information, all organized by room or broken down by project. Not only can the account serve as a quick reference for specs and sizes, but it can also be a go-to source for manuals and warranty information for all of your products and appliances. I can see this being a very useful tool when you want to sell your home. Just think, all the information you need about improvements you’ve made down to the paint color on the walls organized and stored in one place! Plus if you have a MyLowe's card, you can link it to your online MyLowe's account to keep track of all purchases made online and in Lowe’s stores. When you log into your online MyLowe’s account, you will see an entire history of your Lowe’s purchases. Read the entire article at My Lowe's Benefits - Future of Home Improvements to find more about it and let me know what you think.  Full Article

Good News on the Home Front - The National Association of Realtors released its statistics yesterday and reports Pending Home Sales nationally were up 7.3% in November. That’s the highest level recorded in more than 1 ½ years and much better than anticipated by economists! According to NAR, the last time the Pending Home Sales Index was higher was in April 2010 “as home buyers rushed to beat the deadline for the home buyer tax credit.” There are fewer foreclosures on the market which is extremely good news for home sellers. Interest rates are still historically low which is good news for buyers and homeowners who are thinking of refinancing. I think this rise in home sales shows consumers are beginning to show some confidence in the market again plus consumers seem to be more confident in the longevity of their jobs and are ready to invest in their futures again.


Locally, the Memphis market is soaring above the national level. The Memphis Area Association of Realtors reports Home Sales in November were up 28.4% over last year and 2.1% from October this year. According to Leon Dickson, MAAR President, “Sales in November of 2010 were really light, so that has something to do with the huge percentage increase in sales this November, but it is encouraging that the market was more active.”  I totally agree,  It is definitely encouraging that the market is more active.

______________________________________________________________

Washington, DC, December 29, 2011

Pending home sales continued to gain in November and reached the highest level in 19 months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 7.3 percent to 100.1 in November from an upwardly revised 93.3 in October and is 5.9 percent above November 2010 when it stood at 94.5. The October upward revision resulted in a 10.4 percent monthly gain.

The last time the index was higher was in April 2010 when it reached 111.5 as buyers rushed to beat the deadline for the home buyer tax credit. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said the gains may result partially from delayed transactions. “Housing affordability conditions are at a record high and there is a pent-up demand from buyers who’ve been on the sidelines, but contract failures have been running unusually high. Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage,” he said.

“November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead,” Yun added.

Pending home sales are not affected by the recently published rebenchmarking of existing-home sales because the index uses a different methodology based directly on contract signings, and is adjusted for seasonality.

The PHSI in the Northeast rose 8.1 percent to 77.1 in November but is 0.3 percent below November 2010. In the Midwest the index increased 3.3 percent to 91.6 in November and is 9.5 percent above a year ago. Pending home sales in the South rose 4.3 percent in November to an index of 103.8 and remain 8.7 percent above November 2010. In the West the index surged 14.9 percent to 121.2 in November and is 2.9 percent higher than a year ago. Full Article

Are you are thinking of selling your home in 2012 - or know someone who is? Are you wondering what improvements will bring the best return on your investment? According to the National Association of Realtors, improvements on the exterior, kitchens, and baths bring the most “bang for your bucks”…

When it comes to remodeling, “exterior replacement projects have routinely rewarded homeowners with more bang for their buck. This year is no different, as Realtors® recently rated many exterior improvements as among the most valuable home investment projects as part of the 2011-12 Remodeling Cost vs. Value Report.

“This year’s Remodeling Cost vs. Value Report shows the value of putting your home’s best façade forward, so to speak,” said National Association of Realtors® President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Inexpensive exterior replacement projects are not only crucial to a home’s regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal.”

According to the Cost vs. Value, seven of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. Realtors® judged an upscale fiber-cement siding replacement as the project expected to return the most money, with an estimated 78 percent of costs recouped upon resale..”

Two additional siding replacement projects were in the top 10, including foam-backed vinyl siding, expected to return 69.6 percent of costs, and upscale vinyl siding, expected to recoup 69.5 percent of costs. Three door replacements were also among the top exterior replacement projects. The steel entry door replacement is the least expensive project in the report, costing little more than $1,200 on average and expected to recoup 73 percent of costs..”

The upscale garage door replacement jumped seven spots to number six this year, primarily due to the average cost of the project declining more than 15 percent nationally. The upscale and midrange garage door replacement projects are expected to return more than 71 percent of costs. One window replacement project – upscale vinyl – rounded out the last exterior replacement project in the top 10, expected to recoup 69.1 percent of costs..”

The 2011-12 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 14th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR..”

Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that homeowners would recoup an average of 57.7 percent of their investment in 35 different improvement projects, down from an average of 60 percent last year. Due to a weak economy, high unemployment in the construction industry and the increasing cost of materials, the price of remodeling projects have risen, leaving many homeowners hesitant to tackle projects or encouraging them to scale back on their plans..”

Three interior remodeling projects are also considered worthwhile investments. A midrange attic bedroom is expected to return 72.5 percent of costs upon resale; of all the projects in the report, it is the least expensive way to add a bedroom and bathroom within a home’s existing footprint. A minor kitchen remodel, expected to return 72.1 percent of costs, is fourth overall, ranking two places higher than last year. Nationally, the average cost for the project is just under $20,000 and is the least expensive way to give an existing kitchen a complete facelift. A wood deck addition, landing at number seven overall, is expected to recoup 70.1 percent of costs. Improvement projects that are expected to return the least are a sunroom addition and a home office remodel, both estimated to recoup less than 46 percent of costs..”

“Resale value is just one factor among many that homeowners need to take into account when making a decision to remodel,” said Veissi. “The desirability and resale value of particular remodeling projects also varies by region and metropolitan area. A Realtor® can help homeowners decide what low-cost improvement projects will provide the most upon resale in a particular market.”.”

You can find summarized results of the report on http://www.houselogic.com/. This website also includes a wide variety of ideas and projects to help homeowners maintain, enhance and improve the value of their homes.

For full project descriptions and access to national and regional project data, visit http://www.costvsvalue.com/.

I hope you find this information beneficial. Remember though, real estate is local so be sure to consult a Realtor in your area for added expertise on preparing your home for the market.  Let me know if you have questions or comments.  Full Article