Maine Open House Weekend

Maine Open House Weekend is scheduled for Saturday and Sunday, June 4 and 5, 2011, in line with the Nationwide REALTOR® Open House Weekend across the country to help showcase and promote the great housing inventory on the market available for Buyers.

To add an additional boost to the event, the Maine Association of REALTORS is promoting the event statewide across multiple media and social media outlets, and offering everyone who attends a Maine Open House over the weekend to enter into a drawing for a Theme Park Adventure, including 2 one-day passes to your choice of amusement parks, plus 3 days/2 nights hotel accommodations for 2 at the Hilton, Marriott or Hyatt Regency, as well as a Lowe's $500 gift card.

Individuals over the age of 18 can enter to win at participating open houses across the State of Maine on June 4 and/or June 5 and enter to win with the agent hosting the open house. In order to be entered for a chance to win, participants will need to provide the real estate agent with their name and contact information, and a prize winner will be chosen randomly on Wednesday, June 8, 2011. (MAR will not use or share your contact information.) There is no purchase necessary to win. Multiple entries are allowed, and you are certainly encouraged to visit as many open houses as you can.

To find all of the participating open house locations, visit the www.MaineListings.com/openhouse. Maine Open House Weekend will also be advertised in the Portland Press Herald, Maine Sunday Telegram, Kennebec Journal, and Morning Sentinel.

Maine VA Loans

Service members and veterans moving to southern Maine to settle down or relocate have the privilege of financing a home through the VA Home Loan program. VA loans in Maine combine a handful of benefits that make buying a home less financially burdensome for military members. Even active-duty personnel can use a Maine VA loan, especially if they are looking for property near the, soon to close Brunswick Naval Air Station located northeast of Portland.

There is a general consensus among VA loan borrowers about the program's best benefit: the next-to-nothing down payments. Maine VA loans come with zero percent down to qualified borrowers. Almost all service members and veterans who receive a VA loan have the option to pay nothing down, while the rest of the borrowers pay less than 5 percent down.

Despite this one amazing perk, it's easier to qualify for a VA loan than a conventional loan. Of those who qualified for a VA loan, about 80 percent would not qualify for a traditional one. Even after the credit crunch, service members and veterans with imperfect credit can still get a VA loan in Maine. VA-certified lenders, such as VA Mortgage Center, most often lend to borrowers with scores of at least 620. They also accept debt-to-income ratios as high as 41 percent. A former bankruptcy or foreclosure does not mean a borrower will be denied a VA loan.

In addition to the down payment benefit, Maine VA loans come with a bunch more. Two advantages that save money in the long run are the lower interest rates and elimination of private mortgage insurance (PMI). Lower interest rates are the result of the VA's guarantee on up to one-quarter of each loan's amount. Lenders take on less risk and therefore shave off a few points. With lower rates and no PMI, monthly payments on VA loans shrink.

No prepayment penalty enables borrowers to pay at their own rate without fear of being charged for doing so. The program also comes with assistance to borrowers who are on the verge of default. One refinancing option, the VA Streamline, lets borrowers refinance their loan to lower their interest rate.

Not every service member or veteran is eligible for a Maine VA loan, but those who may be eligible include:

• Military members who served on active duty for 90 days or 181 days during wartime or peacetime, respectively.



• Reservists or members of the National Guard who served for at least six years.



• Spouses of service members who died in the line of duty or because of a service-related injury.

The first step in attaining a Maine VA loan is completing a Certificate of Eligibility (COE). Contact a VA-certified lender today to get your COE and more info on VA loans in Maine.

For more mortgage and finance information, visit my website's mortgage center.

A Big Incentive to Buy Before October 1st!!!

100% financing is still available through Rural Development. Many of my buyers are finding this program hard to pass up:

• No Down Payment
• No Monthly PMI (until Oct 1st – so don’t delay!)
• Allows Closing Costs to be rolled into the loan
• Unlimited Seller Concessions (great opportunity for a "buy down" & lower monthly payments)
• 30yr Fixed Rates ranging from 5.0 to 5.25% over the last 6 months
• No Re-capture Period or Pre-payment Penalty – Ever!
• Credit Scores all the way down to 640

However, beginning October 1, 2011, all RD purchase loans transactions will be charged an annual fee of 0.3 percent of the unpaid principal balance (monthly PMI). On a $200K home, this is $50/month or $600/yr.

These changes will not be effective until October 1, 2011. So there is plenty of time between now & October for buyers to still avoid this additional cost.

Click here for more real estate news and advice.

For more mortgage and finance information, visit my website's mortgage center.

FHA Minimum Credit Score Lowered!

Qualifying for a FHA loan just got easier!

Most lenders have required a 640 minimum FICO score for FHA purchases and refinance transactions. Effective TODAY, the minimum credit score for FHA Fixed Rate loans has been lowered to 620.

Another good reason for buyers to get off the fence!!!

Click here for more real estate news and advice.

For more mortgage and finance information, visit my website's mortgage center.

Mortgage Assistance Relief (MARS) Protects Consumers

The Federal Trade Commission's new Mortgage Assistance Relief Services (MARS) Ruling is designed to protect consumers from unfair and deceptive practices associated with mortgage relief companies.

The MARS new ruling:

• Makes it illegal to collect upfront fees

• Requires specific disclosures in all communications and advertisements for

mortgage assistance relief services, and

• Requires specific record keeping for two years from the date of document

creation.

Penalties for Non-Compliance

According to FTC attorneys, penalties for noncompliance include:

• Civil penalties of $16,000 per occurrence

• Injunctive relief

• Disgorgement of unlawful gain

• Ban on participation

To avoid penalties that could land you in hot water with the FTC, you should become familiar with and begin applying these changes immediately!

Understanding the Foreclosure Freeze

In September and early October 2010, several lenders suspended foreclosures due to questions about whether the transactions were being processed consistent with applicable state law requirements.

Although nearly all of the foreclosures in question are expected to be fixed eventually, the current situation is creating difficulties and a new hurdle to the recovery of the housing and mortgage markets. Additionally, homes on the market without clear title will make sales much more difficult. It is expected that foreclosures in question are likely to be withdrawn from the market.

The foreclosure problem isn't about whether some home owners had their homes wrongly foreclosed upon (there's been no evidence of that to date) but to what extent banks were taking short cuts on foreclosure procedures in states requiring judicial foreclosures.

It is difficult to say what percentage of foreclosures that were improperly processed were. The assumption is that, for most of them, this may be only a technicality and the property ultimately would have been repossessed. Owners who believe their home was wrongly foreclosed may wish to contact an attorney to investigate the possibility of a property claim. However, that could prove costly and time consuming-regulations vary by state.

Any family who loses a home to foreclosure is one family too many. Anyone facing foreclosure should be sure to consider all the options available. In many cases, it may make more sense for a bank to modify a loan or agree to short sale to expedite disposal of inventory.

Visit my website for more real estate news and advice or foreclosure information.

10 Low-Cost Tips to Make Your Home More Appealing to Buyers

When selling your home, the goal is to sell it quickly for the highest price while spending as little as possible on renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. The experts at BuyOwner.com offer the following recommendations for preparing a house for sale and staging it for showings.

Tip #1: Refresh the Exterior
First impressions count when it comes to selling a home. Most buyers won't even leave their car if they don't find the exterior appealing. The best ways to improve your home's exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.

Tip #2: Spruce Up the Lawn and Landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home's interior. By improving the outside, you affect buyers' impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.

Tip #3: Create an Inviting Entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce Clutter and Furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.

Tip #5: Clean, Clean, Clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.

Tip #6: Make Minor Repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.

Tip #7: Showcase the Kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.

Tip #8: Stage Furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.

Tip #9: Light Up the House
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.

Tip #10: Add Fresh Touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.

Click here for more helpful tips for sellers.

Tips to Getting Your Loan Modification Application Reviewed

Many homeowners seeking a loan modification to lower their monthly mortgage payments and avoid foreclosure continue to find the application process a very complex process, often causing them to give up before their application is ever reviewed by their mortgage company.

Certified housing counselors for CredAbility, a national nonprofit credit counseling and education agency, speak daily with hundreds of homeowners seeking a loan modification or other solutions to keep their homes. The organization has several tips for people that will help them increase the chances that their application is reviewed as quickly as possible.

A homeowner needs to collect and send several documents that tell the mortgage company why you need a modification, and it needs to be done in a timely, organized manner. Once a homeowner has submitted these documents, they need to stay in regular contact with the company. With hundreds of thousands of applications under consideration, homeowners must take matters into their own hands to make sure their application gets to the right person at the company.

Here are CredAbility's recommendations for homeowners seeking a loan modification:

Speak With a Nonprofit Housing Counselor to Understand Investor Rules for Your Loan. Every homeowner's mortgage loan is different, so don't rely on information you may have heard from your neighbor or your sister-in-law, even if they received a loan modification. For example, if your 30-year, fixed interest rate loan is owned by one investor, and your neighbor's is owned by another investor, the rules governing a loan modification may be quite different. A certified counselor at a nonprofit credit counseling agency can help you find the investor who owns your mortgage and determine your options.

Submit All Documents That Prove Your Current Income. Income verification is critical, but homeowners sometimes don't provide their mortgage company with recent documents. If you lost a job in June, don't provide pay stubs from March. In addition to recent pay stubs and other traditional income sources, homeowners should also provide a document called a "contribution letter." This letter explains the source of any household income that is not easily verified. For example, a servicer will want to know the total household income of a married couple, even if only one person's name is on the loan. The letter could also include income verifying that you have a roommate that pays rent.

Submit Current Bank Statements. Recent bank statements allow your mortgage company to verify your income and expenses. This information enables the mortgage company to see your monthly expenses for food, utilities and other expenses and determine whether you will have enough money to make your mortgage payment.

Mail Your Documents to the Mortgage Company. Many people prefer to send all of their documents by fax or scan their documents and send them via email. However, postal mail is usually more reliable, especially if it's addressed to the person you spoke with at the mortgage company. Faxes often get lost.

Label Each Page With Your Name and Loan Number. One of the most common complaints among homeowners is that the mortgage company loses their documents. You can help your own cause by writing your name and loan number on each page of every document.

Fully Explain Any Recent or Unique Income Changes. For example, a bank deposit may show various one-time transactions, such as an asset sale, cash gifts from family members or a bonus. Unless you explain this one-time increase in income, the servicer may not understand it and use this information to deny your loan modification.

Include a Timeline in Your Hardship Letter. Every application for a loan modification must include a "hardship letter" that explains the reasons for your request. But the letter must have specific dates explaining when an income loss has occurred. If your spouse lost her job on July 15 and your family income will decrease by $3,000 beginning in August, your letter needs to provide these details.

Call Your Mortgage Company Every Week. Many homeowners work extremely hard to submit all of their paperwork to the servicer - and then wait for weeks before picking up the telephone to call them about the status of their application. This is a mistake for several reasons: the person handling your application may quit; the application may be transferred to another person; the company may need more information. You get the picture.

Click here for more real estate news and advice.

For more mortgage and finance information, visit my website's mortgage center.

12 Ways to Save Money on Homeowners Insurance

SHOP AROUND
Friends, family, the phone book and Internet are some of the sources you can use to find homeowners insurers. Get a wide range of prices from several companies. But don't consider price alone. The insurer you select should offer both a fair price and excellent service. Quality service may cost a bit more, but you buy insurance in case you need to make a claim, so it's important to get a company with a good reputation. Talk to a number of insurers to get a feeling for the type of service they give. Ask them what they would do to lower your costs. Check the financial ratings of the companies with AM Best or Standard and Poor's.

RAISE YOUR DEDUCTIBLE
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay. Deductibles on homeowners policies typically start at $250. Increase your deductible to
$ 500 -- save up to 12 percent
$1,000 -- save up to 24 percent
$2,500 -- save up to 30 percent
$5,000 -- save up to 37 percent

BUY YOUR HOME AND AUTO POLICIES FROM THE SAME INSURER
Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.

WHEN YOU BUY A HOME...
Consider how much insuring it will cost. A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house. Insurers may offer you a discount of 8 to 15 percent if your house is new. Check the home's construction: In the East brick is better, because of its resistance to wind damage, and in the West frame is better, because of its resistance to earthquake damage. Choosing wisely could cut your premium by 5 to 15 percent. Avoiding areas that are prone to floods can save you about $400 a year for flood insurance. Homeowners insurance does not cover flood-related damage. The closer your house is to firefighters and their equipment, the lower your premium will be.

INSURE YOUR HOUSE, NOT THE LAND
The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should.

IMPROVE YOUR HOME SECURITY AND SAFETY
You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm, or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police station or other monitoring facility. These systems aren't cheap and not every system qualifies for the discount. Before you buy such a system, find out what kind your insurer recommends and how much the device would cost and how much you'd save on premiums.

STOP SMOKING
Smoking accounts for more than 23,000 residential fires a year. That's why some insurers offer to reduce premiums if all the residents in a house don't smoke.

SEEK OUT DISCOUNTS FOR SENIORS
Retired people stay at home more and spot fires sooner than working people and have more time for maintaining their homes. If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies.

SEE IF YOU CAN GET GROUP COVERAGE

Alumni and business associations often work out an insurance package with an insurance company, which includes a discount for association members. Ask your association's director if an insurer is offering a discount on homeowners insurance to you and your fellow graduates or colleagues.

STAY WITH AN INSURER

If you've kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5 percent if you stay with them for 3 to 5 years; by 10 percent if you remain a policyholder for 6 years or more.

COMPARE THE LIMITS IN YOUR POLICY TO THE VALUE OF YOUR POSSESSIONS AT LEAST ONCE A YEAR
You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need.

LOOK FOR PRIVATE INSURANCE FIRST
If you live in a high-risk area, one that is especially vulnerable to coastal storms, fires, or crime, and have been buying your homeowners insurance through a government plan, you should check with an insurance agent or company representative. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

Visit my website for more helpful Home Buyer Tips.

FHA Giving Buyers Until October 4th

The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium. After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.

What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.

Although the upfront mortgage insurance premium is going down after October 4, the long term impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer's pocket with their mortgage payment each month.

Home buyers in a home short term may actually benefit
Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.

The upfront premium will be reduced to 1% from 2.25%. This change will impact over 30% of the home buyers in today's market who use FHA-insured financing.

For more current real estate news click here.