There are many actions borrowers can take before facing foreclosure. Many find solutions to their difficult situations by short-selling their homes or simply walking away, an option the Obama administration’s Making Home Affordable program makes slightly easier by paying $3,000 to borrowers for relocation costs.

Those looking to avoid foreclosure have ample and growing resources, including:

• The HUD website, which lists various options for different types of homeowners facing foreclosure.
• The Federal Housing Authority (part of HUD).
• The Obama administration’s Making Home Affordable program, which includes HAMP, Home Affordable Refinance Program (HARP) and Home Affordable Foreclosure Alternatives Program (HAFA).

Bank of America, among other banks, offers advice on its website for consumers seeking to avoid foreclosure.

If homeowners want to stay in their home, there are a variety of options, including: refinancing directly with the bank or with a program like HAMP, the Federal Housing Authority, or the Department of Housing and Urban Development (HUD); and payment forbearance; among several other options.

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The government’s $25 Billion Settlement with the nation’s five biggest mortgage servicers over so-called “robo-signing” practices could boost short sales, as loan servicers will receive credit when they approve sales that include forgiveness of a portion of underwater homeowners’ debt.

Although the settlement is only expected to help a fraction of homeowners who owe more their properties are worth — perhaps one in 20, according to one estimate — it will also help bring certainty back to housing markets by removing some of the obstacles that have been keeping homes stuck in the foreclosure pipeline.

Announced last month, detailed terms of the agreement between mortgage servicers and a coalition of state attorneys general and federal agencies were filed today.

Broadly, the settlement calls for mortgage servicers to pay $5 billion in fines and commit to a minimum of $17 billion in homeowner relief, including principal reductions. Another $3 billion is earmarked for helping underwater borrowers refinance.

“We will see an increase in short sales, because lenders and loan servicers will get the same credit for doing a short sale, as if they did a loan modification or principal reduction,” said Rick Sharga, executive vice president of Carrington Mortgage Holdings LLC.

The Wall Street Journal reported Sunday that the structure of mortgage write-downs was a major point of contention in the year-long negotiations leading to the settlement.

An increase in short sales is news we can all use.  Get the rest of the article here…

Rebecca Kolls, the consumer strategist of home and garden for Iconoculture—a leading consumer trends advisory firm—has been getting a lot of attention talking about the most anticipated 2012 home decorating trends.

She says 2012 will not be about flashy, over-the-top design; but rather, about decorating for real life—a home that’s smaller, more well-equipped and custom-made for its owners’ lifestyles.

Kolls says 2012 trends highlight practicality, rightsizing, style-telling and universal design. She says despite a decrease in average overall square footage, kitchens are growing, homeowners are adding more porches, ditching the conventional living room concept and embracing fewer – yet larger – rooms.

Instead of one purely decorative element, Kolls says homeowners are springing for more affordable luxuries with experiential benefits.

In the bedroom, these purchases include new mattresses for increased comfort and a better night’s sleep, plus items like improved lighting and window coverings that facilitate a gentle transition from sleeping to waking. Bathroom remodels include items like towel warmers, steam showers and multiple body spray outlets that promote relaxation and spa-like indulgence.

Furthermore, Kolls says homeowners in 2012 will be looking to tell a story through their decorating, with pieces that put a personal stamp on their spaces. People are stylizing the most-used room in the home—the kitchen—by adding workstations, artwork, photography and more furniture-like cabinetry enhanced by decorative cabinet knobs and pulls.

And since baby boomers are caring for their parents, their children, and sometimes even grandchildren, all while making plans for their own future, Kolls says more will want to spend the rest of their lives in their own home.

That also means homes with several generations under one roof will be utilizing technology to help keep all members of the family safe and well. In fact, Kolls predicts that wireless home health monitoring technologies are expected to grow by $4.4 billion by the year 2013.

After several years of understandable negativity toward the economy and the real estate market, a new survey shows that Americans’ concerns about key economic and housing issues are beginning to subside.

Fannie Mae’s February 2012 National Housing Survey shows that consumer attitudes have stabilized across most indicators—including personal finances, housing, and employment—compared to late summer and fall of 2011. The survey polls 1,003 Americans via telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts.

The survey shows that the most dramatic change revolves around the economy—35 percent of Americans now feel that the economy is on the right track, up 19 percentage points since November, and 57 percent think the economy is on the wrong track, down 18 percentage points since November.

Americans’ confidence about personal financial situations, household income, and household expenses, as well as attitudes about homeownership and renting is holding at steady levels. Also important to note, Americans’ concerns about losing their job in the next 12 months has stabilized since the late fall, with 76 percent of Americans saying they are not concerned in February 2012, compared to 70 percent in November 2011. Fannie Mae believes that the recent pick-up in the pace of hiring over the past few months is directly responsible for alleviating consumer concerns about unemployment.

Here are some additional highlights from this important survey:

• Only 12 percent of respondents believe that their personal financial situation will worsen in the next 12 months, a 3 percentage point drop from January and the lowest value in over a year.
• 33 percent say their expenses have increased significantly over the past 12 months, a 3 percentage point decrease from last month and the lowest level in the past 12 months.
• 28 percent of respondents expect home prices to increase over the next 12 months (consistent with last month), while 15 percent say they expect home prices to decline (down 1 percentage point since last month).
• 10 percent of Americans say that mortgage rates will go down in the next 12 months, a 2 percentage point increase from last month.
• The percentage of respondents who say it is a good time to sell rose by 3 percentage points to 13 percent, the highest level in over a year.
• 45 percent of respondents think that home rental prices will go up, a 2 percentage point increase from last month.

As rents continue to increase and more home sellers enter the market, the next few months represent a critical opportunity to purchase your first home or move up to your next home. Positive data like the above will quickly build momentum in the current housing market.

Make repairs – It’s hard to spend money when budgets are tight, but don’t procrastinate on needed repairs such as roof work, painting, or landscaping. Making repairs are a necessary component of homeownership, and staying on top of them is a sure way to safeguard your home’s value.

Update the kitchen – Kitchens are a major selling point, and little turns a buyer off more than outdated cabinets, counters, and appliances. On the other hand, don’t go overboard with expensive amenities without researching neighborhood comparables.

Update bathrooms – Handsome low profile toilets can cost under $100, and stained or damaged tubs or showers are inexpensive to repair or replace. Attractive lighting fixtures and/or updated sinks also appeal to today’s buyers.

Energy savings – Buyers want homes that are energy efficient. Low-flush toilets, solar panels, water filtration systems, and insulated windows are all inexpensive but worthwhile fixes.

Keep the neighborhood desirable – Get involved in local organizations, such as the PTA or service clubs, which have a stake in school and community improvement. Involvement is a good way to keep track of what’s going on in your schools and neighborhoods, and can increase the odds that yours is the neighborhood most desired by new and move-up buyers.

According to Realtor.org:

Foreclosures ticked up in January nationwide as more banks continued to work through backlogs of defaulting mortgages on their books, RealtyTrac reports.

For more than five years, Nevada has been the state leader with the highest rate of foreclosure filings in the country. In January, one in every 198 homes received a foreclosure notice in the state.

Still, Nevada is seeing progress: The state saw an 8 percent decrease in foreclosure activity from December to January, and filings were down 52 percent year-over-year.

Here are the states that are still facing the highest foreclosure rates in the nation:

1. Nevada: 1 in every 198 homes received a foreclosure filing in January
2. California: 1 in every 265
3. Arizona: 1 in every 325
4. Georgia: 1 in every 328
5. Michigan: 1 in every 354
6. Florida: 1 in every 363
7. Illinois: 1 in every 369
8. Delaware: 1 in every 373
9. Colorado: 1 in every 523
10. Indiana: 1 in every 555

Nationwide, one in every 624 households received a foreclosure filing in January.

While Nevada may still have the highest rate of foreclosures among states, some individual cities are seeing even higher rates of foreclosures. The worst hit-place for foreclosures is Stockton, Calif., in which one out of every 140 households received a foreclosure notice in January. In fact, nine of the country’s top 10 highest foreclosure rates were in metro areas in California — with Las Vegas the only city outside of that state on the list (ranked at No. 5).

According to Realtor.org:

Real estate professionals who earn $100,000 or more per year show quite a few differences in how they do their job and the technology they use compared to real estate professionals who make $30,000 to $50,000 a year, according to a new survey conducted by InmanNext, a Web site operated by Inman News.

Surveying about 1,300 real estate agents, InmanNext found some of the following characteristics common to those who make $100,000 or more per year versus those who make less.

– Close more transactions: Sixty-six percent of real estate agents who make $100,000 or more per year say they closed 20 or more transactions in the year compared to about half of those who earn $30,000 to $50,000 who say they closed 10 or fewer transactions.

– Appeal to the high-end market: High-income agents tended to specialize in luxury homes, condos, and townhouses, and they were less likely to work with first-time buyers or REOs compared to mid-range earners.

– Work longer hours: Forty-two percent of high-income agents say they work between 40 to 50 hours a week, and 41 percent say they work more than 50 hours a week.

– Spend more on marketing: High-income agents tend to spend more money on their marketing. About 62 percent of middle-income agents reported spending less than $2,500 on their marketing for their business. On the other hand, 63 percent of high-income earners said they spent $5,000 or more per year on marketing.

– Spend more on technology: High-income earners also tend to spend more on technology purchases to aid them in their business. More than half said they spend $2,500 or more on technology each year, and a quarter spend $5,000 or more. Meanwhile, about 84 percent of middle-income earners say they spend less than $2,500 on technology purchases a year. As for technology preferences, high-income earners show a preference toward Apple Macintosh computers and iPhones, more so than mid-range earners.

– Use social networking and Web sites: Nearly half of high-income earners say they update their Web site at least a few times a week, while 39 percent of mid-range earners report updating their Web site or blog only once a month. High-income earners are also more connected on Facebook, with nearly half reporting 500 or more friends on Facebook compared to more than two-thirds of middle-income earners who say they have 500 or fewer friends on Facebook. High-income agents also were more likely to have a YouTube account and Twitter account and to have more followers than mid-range earners.

Use old cards: We were told for years to cut up or cancel old credit cards. Now, it’s better to periodically dust off those old credit cards sitting in a drawer and use them for small purchases. Pay off the balance within a month to avoid interest charges. The key is to show activity on the card, since 15 percent of your score is based on your credit history.

Increase available credit: The old 50/50 rule we used in the past is long gone. Today, creditors want to see that you are using no more than 20 percent of your available credit; less than 10 percent is even better. Since 30 percent of your FICO score is based on the percentage you owe divided by the total amount available, keeping your spending under 20 percent is a great way to increase your credit score.

Pay on time: Sounds pretty obvious, but unfortunately many people think paying a day or two late is no big deal. Thirty-five percent of your FICO score is based on credit history, so paying on time is crucial. As noted above, making one late payment can reduce your score as much as 110 points!

Avoid co-signing for others: This will show up on your credit report and could negatively affect your score if the individual goes over 20 percent of the credit limit or fails to make a payment on time. Just one incident could reduce an “Excellent” rating down to a “Poor” rating, and increase the interest you pay on loans and insurance. Caution: While the new credit card rules require a co-signer for minors under 21 who apply for a credit card, many companies are not adhering to the new rules. Be sure to warn the young adults in your life of the hazards of applying for and misusing credit cards during their early years. A couple of mistakes may prevent them from finding a place to live, purchasing a car, buying insurance at a reasonable rate, or even obtaining a job.

Limit applications for loans or credit cards: Since 10 percent of your score is determined by the number of new applications, inquiries, or credit you apply for, if you don’t need additional credit this year, avoid signing up for new cards or giving approval to anyone to look at your credit score. Just sit tight and gradually watch your score increase.

Some of the items are no-brainers but listing them out should get your creative space-making juices flowing:

Here is some of what they said:

“Check that everything is ergonomically suitable for you. It’s easy to become despondent and start making a mess when your working arrangements make you feel uncomfortable. A chair that makes your legs feel deadened or a table that just doesn’t have the space needed will soon have you wandering off and trying out other parts of the house to improve your comfort levels.

Remove the superfluous. Clutter will make it impossible for you to remain organized in a home office. Being at home, you’re at greater risk of things “migrating” into your work zone that have nothing to do with your work. Deal with this by getting rid of every object that is not useful for work. Take a close look at what you’re dealing with and define carefully what you need and what you don’t.

Manage the cables. You’ve probably found out through experience that the tangled cords under your desk are great at achieving three things: they trap dust balls, they make you look disorganized and they snag your feet, occasionally pulling over something else in the process. Don’t live with that rat’s nest of cables lurking behind your workstation; even if you’ve never thought it was possible to straighten out your office cables, give it a try.

Go wireless. Now that you’ve got that mess under your desk cleared up, think about getting rid of the cord clutter on your work surface. Wireless keyboards and computer mice are terrific gadgets that will free up both your space and your movements. Just imagine not having to tug the cord of your computer mouse free ever again.

Keep your printer off your workspace desk or table. Purchase or find a suitable printer table for it instead. If this small table or cabinet has shelves for storing printer paper and cartridges, this is even better.

Ensure adequate lighting. A home office needs good lighting to help you see properly at all hours of the day. If you’re stuck in a basement or somewhere that’s darker than normal, consider using a daylight bulb to brighten up your working space and to help you feel that the light is more natural.

Label everything. Stop squinting at the handwritten chicken-scratch on your file tabs and invest in a label maker instead. Having a label printer around will not only keep the contents of your filing cabinet looking neat and professional, it’s also very handy for organizing discs, office supplies and storage cabinets.

Sort. Sort through papers and shred the ones you don’t need. We’ve all dealt with it: the mountain of paper that comes from repeatedly putting off sorting through junk mail and paperwork. You have it in your power to keep that paper from piling up in the first place.

Straighten up at each day’s end. Before you call it a day, do a small tidy up. By taking just a few minutes to put everything back in order, you’re making a useful transition out of your workday, and ensuring that your office will be a much more pleasant place to return to the next day.

These are all good points.  So, if you need help getting some work done on your home office – give us a call!

If you’re one of the many homeowners considering a refinance, here are some important facts you need to know first. Be sure to consult with your real estate agent and/or financial advisor, as well.

1) Make sure you are in good standing on your mortgage. As the President emphasized, refinances will be considered for those homeowners who have a good payment history and are current on their mortgages.

2) Check your current credit score. Refinance candidates need to demonstrate steady income and good credit. Make sure your credit rating is up to snuff and see what immediate measures can be taken to improve it if it’s not.

3) Examine how much longer you plan to live in your home. If you are planning to put your home on the market in the near future, refinancing probably doesn’t make sense.

4) Consider the length of the loan. Where you’re at with your current mortgage can play a significant role in your decision to refinance. If you’re close to retirement, for example, and your loan is almost paid off, refinancing could result in extending the life of your loan, ultimately costing you more. Also, if you’re several years into a 30-year mortgage, your goal should be to refinance into a 15- or 20-year mortgage instead. Otherwise, you’re extending the number of years in which you’ll pay interest. Your refinancing goals should be short-term and long-term savings.

5) Find out the costs involved. Before you plunge into a refinance, find out the costs involved. Weigh these fees against the money you will save (contingent upon how long you plan to stay in your home) to make sure refinancing is the right step.