FHA Financing To Bridge Buyers & Sellers

To keep our Real Estate market flowing and to help people needing to refinance for Arm's adjusting or just getting a fixed rate mortgage. FHA is alive and well. Let me show you the benefits of this program.

1. Can be no dollars out-of-pocket using down-payment assistance programs, even 97% max LTV.


2. Allows for 95% LTV cash-out.

3. Flexible credit options including nontraditional credit.

4. Easy, consistent Mortgage Insurance premium.

5. No income limits.

6.Borrower's cash investment may be a gift from a family member, employer, or local government entity.

7. Seller can pay up to 6%.

8. No prepayment penalties on FHA - insured loans.

9. FHA loans are assumable.

10. Non-occupant co-borrowers allowed without the requirement that the occupant meet specific minimum debt-to-income ratios of their own.

Feel free to email me if you need any additional information at: findit@LehighValleyrealty.com

Santa & Elves in Allentown

The weather was mild in Allentown on Christmas day. Santa and his helpers came to St. Paul's Lutheran Church at 36 S. 8th. St. They served over 350 people in need. The experience can be felt in the basement of the Church. These people gather together as one big family, to sit down for a hot Christmas dinner. They were given a Thanksgiving dinner consisting of turkey, stuffing, mashed potatoes, green beans and pumpkin pie as well as drinks. The gratitude from these people was overwhelming. After the dinner the guests were given bags of essentials, ie. toiletries, gloves, socks etc. The children had toys, coloring books, and clothing which was donated by our local business partners. We were all entertained by "Pappa John" with his electric piano and powerful voice, singing Christmas Carols and various music selections. It was a very warm and sense of community on Christmas day. On my way home Christmas evening from my in laws, I said to my wife, I wonder where all these people are this Christmas evening. It gives us all pause to be thankful what we have. If you like to get involved at the Soup Kitchen, contact Rev. Richard Baumann of St. Pauls's Lutheran Church at 610-435-9065.

City of Allentown Inspection Program

Last night, Allentown City Council adopted a residential resale inspection ordinance (Bill No. 109) requiring inspection of all residential properties in the City prior to transfer of title. The City believes that this proposal is will ultimately improve the safety and quality of the housing stock in Allentown. LVAR agrees and believes this type of inspection Ordinance in Allentown is long overdue. LVAR believes that an improved housing stock in Allentown translates into increased home values and a more desirable community in which to live and work. If you like more info on Bill # 109 click on this link: http://www.lehighvalleyarea.com/content/upload/AssetMgmt/Government%20Affairs/lvarpriorities/BillNo109_Final.pdf If I can help you with additional info contact me at: findit@LehighValleyRealty.com. Have a great day!

Mortgage Interest Costs Less Than You Might Think

Interest payments on a residential mortgage - assuming the mortgage isn't larger than the purchase price of the home - are fully deductible in most circumstances. That is a key reason why home ownership is a superb tax shelter.

Mortgage interest on a second home is also deductible. If you own a third home for personal purposes, the mortgage interest is treated as "consumer loan" interest is not deductible, with some limitations.

Tip: If you are planning to buy a home with a large amount of cash, consider carefully if you plan to ultimately finance the property. For interest to be deductable on a financing more than 90 days after closing, it will be limited to the original acquisition loan balance plus $100,000, unless the new financing is used to improve your home.

Be sure to keep careful records of when and how much you spend on home improvements when you refinance your home or take out a home equity loan. Consult your tax advisor about the deduction of interest payments when you refinance with a higher loan amount to take money out of the refinancing or pay off other debts.


If you are caught up in a subprime mortgage or a adjustable rate mortgage and need to refinance, consider a FHA mortgage. Contact me at : findit@LehighValleyRealty.com to help you get a permanent mortgage program. Have a great day!

Santa Visits Macungie

Macungie Animal Hospital at 161 E. Main St. in Macungie was visited by Santa Claus today. Santa was quite busy today for numerous pets that came to Santa. Sitting with Santa is Lacey a Golden Retriever puppy. Lacey was more interested in the other dogs that were waiting to get their lists of raw hides, squeak toys and the most trendy leads to Old St. Nick. Dr. Nancy Soares and her staff kept all the critters under control. Check out http://www.macungieanimalhospital.com/
or 610-421-8381. Happy Holidays to all. Feel free to contact me at findit@LehighValleyRealty.com

Clothes Dryer Safety

A dirty lint trap can waste energy dollars by making your dryer run longer – but more importantly; it can also be a major fire hazard if the lint ignites. To make your dryer both safe and energy efficient, clean your lint trap regularly and eliminate any kinks or other obstructions in the dryer exhaust duct. One sure fire way to know that your dryer’s exhaust or lint screen is blocked is if your clothes are still damp after a normal drying cycle.

Take special care when drying clothes that have been soiled with volatile chemicals such as gasoline, cooking oils, cleaning agents, or finishing oils and stains. If possible, wash the clothing more than once to minimize the amount of volatile chemicals on the clothes and, preferably, hang the clothes to dry. If using a dryer, use the lowest heat setting and a drying cycle that has a cool-down period at the end of the cycle. To prevent clothes from igniting after drying, do not leave the dried clothes in the dryer or piled in a laundry basket.

If your dryer’s drum stops turning, if it doesn’t heat up or if it squeals or rumbles when it’s running, it’s time to call in a pro in to keep your dryer running safely and efficiently. If you have the option of having gas connection for your dryer. You may want to purchase one. They are more efficient and your clothing will last longer. The gas dryer is about $75.00 more to purchase but worth the investment. Running a gas line to the unit should run about $350.00 if you do not have one. I hope this info helps. Feel free to drop me a line at findit@LehighValleyRealty.com

Appliances Fix or Replace?

A recent issue of Consumer Reports offered a timeline to determine when to say "adios" to old appliances that aren't operating properly. The magazine took into account age, typical repair and replacement costs, and improvements made in newer models.
Here are the ages when it's more sensible to replace an appliance than fix it:

1. Six years: dishwashers, over-the range microwaves, top-freezer refrigerators
2. Seven years: clothes dryers and top-loader washers

Eight years: Bottom-freezer and side-by-side refrigerators, electric or gas ranges, electric wall ovens and front-loader washers. I hope you found this post interesting. Feel free to email me at anytime at: findit@LehighValleyRealty.com

Shocking Night in Upper Macungie, Twp.

I had a unique opportunity to see a live demonstration of the Taser X 26 by Sgt. Daniel Fagan of the Berks Lehigh Regional Police Dept. last evening at the Upper Macungie, Twp. municiple building. I have to admit it was very educational to say the least. The police version of the Taser costs $750.00 per unit. A Civilian model is available. http://www.taser.com/Pages/default.aspx

We also watch a few video clips of officers utilizing this deterrent. We were informed that the X 26 Taser enters the muscles and produces involuntary muscle spasms and is not affected by water. The unit produces 50,000 volts. Interesting point is the officers apprehending a suspect will not have any transfer of the shock to them. It is isolated only to the areas were the probes on the perpetrator landed. In a video from a Florida police station showed it reduced injury to law enforcement up to 80%. It also saved that municipality on their Workman's comp. The X26 has a cartridge that deploys 2 probes up to 21 feet with trailing wire to transfer the charge to the probes from the Taser. I can see this as a non lethal way to immobilize a perpetrator, and especially useful if the officer is solo. A most informative program for sure. Feel free to email me for more info at findit@LehighValleyRealty.com

Allentown On An Upswing!

If you have been traveling on Tilghman St. just west of Ruby Tuesday is the future home of a Starbucks http://www.starbucks.com , ATT http://www.wireless.att.com/home , Five Guys Famous Burgers and Fries http://www.fiveguys.com , and Supercuts http://www.supercuts.com . This over 11,000 sq.ft. building should be open for business in December 2007 per Real Services, Inc. They are located at 40th. & Tighman Sts. in Allentown and will be managed by Tilghman Assoc. LLC. these fine companies will be an asset to Allentown and surrounding communities. If I can assist you feel free to email me at: findit@LehighValleyRealty.com Have a great day!

Home Tech Item

I am always interested in new or interesting items for your home. I found the "Garage Butler" a neat item. It is a great safety item to have for your home. and for $59.95 it is a great value.

The Garage Butler will automatically close your garage door when you forget. You can now have peace of mind knowing that you never have to worry about leaving it open again.
According to statistics, half of all burglaries occur from a garage door being left open. The Garage Butler will eliminate the possibility of this happening to you.
This patented device will attach to any garage door mechanism that has a working opener/closer button* and will not interfere with the opener's normal operation, nor will it interfere with any infrared safety circuit.
If you forget to close the door, the door will close automatically when it gets dark. Or you can turn the switch to the 'off' position and you can leave your garage door open for an unlimited period of time.
Features:
Works with all current opener safety features
Easy installation, attaches to your current opener button
Close timer delay, 3-10-20-30-45 or 60 minutes
Hold button to override timer delay
Light sensor that closes the garage door when it gets dark
Audible warning 30 seconds before closing
On / Off button giving you complete control
Status indicator light
Manual open/close button
Double sided mounting tape — no holes to drill
Patented lowest cost product on the market.
*The Garage Butler works by attaching itself to the contacts found inside the button that is used to open and close the garage door. If you do not have a button on the wall, make sure that your opener/closer system has contacts on the actual unit by the roof. Additional wire may need to be purchased from your local hardware store to lengthen the wire so that it can be attached to your existing opener/closer. You can purchase it from http://www.garagebutler.com or order it from Hobbit Distributing, Inc. a great company to deal with at 1-800-946-2248 web: http://www.hobbitdist.com/Merchant2/merchant.mvc I hope this was helpful, contact me at findit@LehighValleyRealty.com Have a great day!

Pets & Households

A recent study from the American Pet Products Manufactures Association found that 69 million American households own pets, and about three-fourths of these househoulds view their pet as a child or family member. If you are looking for a pet, why not look at your local animal shelter. Or search online at http://www.petfinder.com/
http://www.petfinder.com/shelters/PA31.html
http://www.healthyanimalcenter.org/petsList.asp?cat=6
http://dvgrr.org/RP_Adoptable.asp?cid=All

I hope this helps you in your search for these animals that need a loving home. Feel free to email me at findit@LehighValleyRealty.com.

Allentown Brew Works, Check it Out!

Last evening, My wife & I and friends of ours ventured down to the Allentown Brew Works located at 814 Hamilton St. in Allentown. http://www.thebrewworks.com/ It was a pleasant and festive setting, and the food was great. My friend Jim was quite impressed with the special holiday ale from this micro brewery. The pricing of the fare was very reasonable. We were able to dine and have drinks for under $80.00. I was amazed on how this massive building was transformed into a lovely place to enjoy the evening in a smoke free environment. I remember this old building when I was a child growing up in Allentown. I think down town Allentown indeed has another thing to be proud of. I know this is one of the many positive changes happening in the Queen City. I rate this this establishment Five Stars. Feel free to email me : findit@LehighValleyRealty.com

Pocketing Profits When You Sell!

Taxpayers who sell their principle residence can keep tax free up to $500,000 in profit if they file singly. The property must have been owned and used as the principle residence for any of the prior years. Homeowners can shelter the profits on the sale of a home as often as once every two years. If the two-year use and ownership tests are not met, but the home is sold because of special circumstances (for example loss of job or health problems, etc.) the exclusion is prorated. Otherwise, gains above $500,000 or $250,000 are taxed at current capital gains rates, which vary depending on your tax bracket. Homeowners should continue to maintain records of selling and improvement expenses because some states still tax capital gains on home sales. In addition, those expenses can be used to determine your tax basis once you sell your home. Some Real Estate transactions may need additional research, as always consult your CPA or tax preparer. I hope this post was helpful to you. If I can assist you in Real Estate related matters contact me at: findit@LehighValleyRealty.com

House Tip/Keeping it Clean

If you have a jetted/jacuzzi tub, you will have to take a little care in maintaining the internal components of it. About twice a year you should clean the unit out. The 1st. step is to fill the tub with hot water, just enough to cover the intake and jets. Turn the unit on and add 2 tablespoons of automatic dish washing detergent and 4 ounces of bleach. The bleach will kill any mold inside the pump and hoses. Run the tub for about ten minutes and drain. You must refill the tub again with just plain hot water and run for 5 minutes and drain. To go one step further in my illustration to the right, you may want to remove the intake cover, and clean it out with an old toothbrush, as well as the jets. This should help to keep your tub in tip top shape and more important keep you safe from mold & mildew concerns. If you have any questions, email me @ findit@LehighValleyRealty.com

"Missed Opportunity"

I have been in Real Estate for almost 25 years, I have seen all types of markets up, down & flat. I must admit I have seen brighter days in our local Real Estate market. This market is robust and full of opportunity for a purchaser. Case in point, I have been showing a prospect the same home for a least four times. The prospects said they wanted to go forth and make an offer. I prepared all the necessary documents and waited for their arrival to my office. As I waited for them our appointment time has passed and I received a call from them. They informed me that they changed their mind on the purchase. Their main concern was the present Real Estate market conditions. They did inform me that they have been looking for a home for the past 2 years and attended many Open Houses. I tried to explain to them that "NOW" is a great time to make a purchase to no avail. What these people fail to realize, even if the market slips a little more, it does not matter. If you are going to live in the home for at least two years, the market will be on a upswing. I also pointed out when the market does heat up again, they will be competing with other buyers who have been sitting on the side lines. You and your family would be enjoying their new home and enjoy all its advantages. "Missed Opportunity" Feel free to contact me at: findit@LehighValleyRealty.com

Home Inspection Thoughts

Whether you are buying a home or selling one, a home inspection is an essential part of the process. It may identify the need for major repairs or uncover builder oversights, as well as highlight the importance of maintenance to keep the home in good shape. The inspection typically will take place after the agreement of sale is executed. Before you sign, be sure the inspection clause is used in your transaction. This clause should specify the terms and conditions to which the buyer and seller are obligated.

The American Society of Home Inspectors (www.ashi.org) publishes a Standard of Practice ad Code of Ethics that outlines what you should expect to be included in your home inspection report. Generally, it will cover the conditions of the following:
* heating system
* central air - outside temperature permitting
* interior plumbing, and electrical systems
* roof, attic and visible insulation
* walls, ceilings, floors, windows, and doors
*foundation, basement and structural components

Fee for inspections vary from locations and extent scope of inspections. For more info feel free to contact me at findit@LehighValleyRealty.com Have a great day!

Safety Notice

Since we are approaching the heating season. Please make note that stoves and ovens are intended for cooking use. Using them to heat your home or apartment could result in a dangerous accumulation of carbon monoxide. Carbon monoxide poisoning can cause symptoms ranging from mild headache and nausea to in rare cases, death. Follow the manufacturer's instruction when using fuel-burning appliances and install CO detectors in your home to avoid the dangers of carbon monoxide. For more info feel free to email me at: findit@LehighValleyRealty.com

Mortgage Market Update

I tend to be informed on Real Estate issues. I would like to give you some timely info on the mortgage market. At the time of this post over 100 national lenders have closed their doors. The credit market is experiencing unprecedented turmoil. What does this mean to out Real Estate market?

Sellers can no longer be reluctant to accept offers or reduce prices. Tightening credit and diminishing mortgage products will continue to reduce the pool of qualified buyers. This along with increase in national inventories, means now is not the time to hold out for the "best" price possible.

Buyers with credit issues or who have difficulty providing required documentation can no longer sit on the fence. If the market conditions changes, buyers who qualify for a loan today may not qualify a few weeks from now for the same exact loan. Many lenders have stop offering no Doc loans, and some lenders have even pulled back on all forms of stated loans. As market conditions continue to change, a buyer's pre-approval status can disappear even more quickly, delaying or killing the transaction.

Subprime and Alt-A refi candidates, especially those with ARMs schedule to reset over the next 12 months, need to act now, even those with a pre-payment penalty. ARMs borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets. I hope this post was informative to you. If you have any questions feel free to email me findit@LehighValleyRealty.com Have a great day!

Fast Facts

81 percent of households 65 and older owned homes in 2006 compared with 43 percent of households younger than 35. Source: U.S. Census Bureau

Natural stone counter tops, which are less expensive than they were a few years ago, are gaining popularity and are expected to last a lifetime. Cultured marble tops have a life expectancy of about 20 years. Source: National Association of Home Builders

Get Ready For Winter

The signs of fall all around. As you prepare for the months ahead - storing summer clothes, checking heating systems and making sure your home is well insulated - don't forget the landscape around your home.

If you've been mowing all spring & summer, it's not time to quit just yet. Continue until the grass stops growing. And speaking of mowing don't forget to take care of your lawnmower. Drain it in late fall, because gas left in the machine will get gummy and may make start up difficult when spring rolls around.

As the temperature drop, so will leaves from trees around your home. It's important to rake lawns regularly. so grass can "breathe." How long can you wait before breaking out the rake? Most gardening experts say you should not go longer than three to four days. however, if the layer of leaves is particularly thick or has been weighed down by rain, the sooner you rake, the better.

If your area gets snow or ice, you'll want to protect deciduous flowering shrubs under a lean-to or similar structure. Begin by building a wire cage that is secured into the ground with poles. Attach chicken wire or heavy gauge wire to the poles and fasten burlap to the sides of the structure to protect the shrubs from damaging wind.

Last but not least, remember your garden hose. Drain it before storing it for the winter and then turn off your outside water supply to prevent pipes from freezing or bursting. Feel free to contact me if you have any questions @ findit@LehighValleyRealty.com Have a great day!

Realtor & Client Relationship

A topic worth exploring is in choosing a Realtor and a Realtor choosing a client. Let's face it, It is like a marriage, and both the Realtor and client must have a good working relationship. From a Realtor perspective it is imperative for the client whether a Buyer or Seller to be honest and motivated. In my my 24 years as a Realtor, I may have had only a handful of clients whom I cared not to work with. The reasons were quite simple, they were unreasonable. I would like to lay the foundation for a sound working relationship, mutual respect and a open line of communication with the same goals in mind "a successful closing". I like to give you a few tips and questions to ask on finding a good Realtor.


1. Find out number of years in the business.
2. Are you a full time Realtor?
3. What designations do you have?
4. Are you familiar with areas of my interest?
5. What other homes have you sold in my area?
6. Do you have past clients I can talk to?
7. Why should I choose you?
8. Do you have a marketing plan?
9. Are you familiar with today's financial climate?
10. Do you return phone calls/emails promptly?
11. Is someone available when you are not?


This will give you some ideas what to look for and ask. Just remember you need to be comfortable, and at ease with the Realtor you choose. Have a great day! For more info feel free to email me at findit@LehighValleyRealty.com

Your Nose!

One of the problems some homes do not sell is the odors in it. A poll by a Canadian real estate company Royal LePage shows that the odor of a home has a huge impact on buyers' decisions about whether to buy a home. According to the poll, 53 percent of buyers said strong odors such as pet and cigarette smells had a stronger impact on their impressions of a home than overall tidiness and cleanliness, strong wall colors or outdated facade and landscaping. Here are some tips for making sure your home has good scents:

1. Don't mask smells with candles or potpourri. Buyers will wonder what odor you are trying to hide.

2. Keep exotic spices and fish to a minimum when cooking the night before a showing. Work toward achieving a "clean" smell.

3. Remove animals and litter boxes from the property.

Getting rid of repellent scents is the first step, but some staging experts also advise using "homey" smells to entice buyers. After all who doesn't love the aroma of freshly baked cookies or pie? For more info contact me at: findit@LehighValleyRealty.com

Keep Your Cool

Want to keep your electric bills from going through the roof this summer? Here are a few steps you can take to keep things cool.



1. Open windows and use portable or ceiling fans instead of operating your A/C. Even mild air movement can make you feel three or four degrees cooler.



2. Use a fan with your window air conditioner to spread cool air through your home.



3. If you find your 2nd. floor is warmer than your first floor, keep the fan selection on your central air thermostat set to the on position. This will blend the both floors and drop the upstairs temperature.



4. Without blocking air flow, shade your outside compressor. Change air filters monthly during the summer.



5. Use a programmable thermostat with your air conditioner to adjust the setting at night or when no one is home.



6. Don't place lamps or TVs near your air conditioning thermostat. The heat from these appliances will cause the A/C to run longer.



7. Install White window shades, drapes or blinds to reflect heat away from the house. Close curtains on south and west windows during the day.



8. Caulking and weather stripping will keep cool air in during the summer.



9. Turn off your computer and monitor when not in use. If you have any other questions feel free to email me at: findit@LehighValleyRealty.com

Watch Your Insurance Claims

Having homeowners insurance is a necessity to protect you for some unforeseen covered losses to your property and personal effects. Your insurance should be used only in extreme circumstances. Let me give you an example. Let's say you have a loss for $1,000.00, your insurance company will cover that loss minus your deductible, and you have a deductible of $500.00. Your insurance company will issue a check for $500.00. Do you feel that was a worthwhile claim? I say not! One reason this claim would not be worth filing, your insurance company will use this claim against you. In the future your insurance premiums will increase. Another good reason when its time to sell your home, it can make it more expensive for the new homeowner to get reasonable premium. Even if your insurance company opens a claim, and you never collect a penny, it will still count against you. Based on what the properties loss experience is, you might say. "What does that matter, I do not have ABC insurance". Guess what, it does matter. All insurance companies have access to this information to determine insurance rates. So in conclusion insurance is designed to protect you against losses. You just need to use it in a prudent fashion, for a significant loss to keep your insurance premiums at the lowest possible costs. This will benefit you and your future buyer of your home. To save even more premium dollars increase your deductible. If you have any questions feel free to email at findit@LehighValleyRealty.com

Resource for Landlords & Investors

Investing in & managing rental properties can be difficult, but the payoff is often well worth it. A new Website, www.completelandlord.com, aims to make managing rental properties more, well, manageable. The site provides valuable tools, information and online community designed to help landlords and investors increase the return on their property investments. Feel free to contact me for more info at: findit@LehighValleyRealty.com

Pre-Listing Appraisal

As the real estate markets are adjusting around the nation - home sellers are increasingly ordering appraisals before putting their homes on the market. Paying around $400.00 to have a home appraisal prior to listing can be a very good sales strategy. Of course I always provide a detailed competitive market analysis to help my clients pick the proper listing price. I strive to get homes sold for as much as possible and within the desired time frame. I use many of the same factors that fee appraisers look at when evaluating a property.

Unfortunately, in these changing times, a price pegged to the current market isn't always as high as the sellers hope for. That is why some sellers are seeking a paid valuation from appraisers - professionals who specialize in providing independent and unbiased valuations based on current market conditions.

Besides confirming the right price at which to list the property, sellers who have an appraisal in hand can use it as a sales tool, to reinforce their asking price. Second, buyers will be more comfortable making an offer on an already appraised home as compared with other homes that lack an appraisal. The appraisal can help assure the buyers that they are not paying too much - especially important in changing markets. Feel free to contact me anytime at: findit@LehighValleyRealty.com

Subprime Lending Saga

One topic that is far reaching today is the subprime mortgage market. It has turned the Real Estate market upside down across the nation. What is the subprime market? It is a way for people with a low credit score of 620 or less to possibly get a mortgage. It does have some disadvantages to main stream financing. The subprime borrower is faced with higher closing costs, junk fees, & a higher interest rate. They are able in some cases to get 100% financing which leaves them & the lender more at risk, because of no equity position. My take on this is with the rapid appreciation of real estate values as of late, both parties would be protected. Poor judgement on the lending institutions on that call, since Real Estate values increase and decrease over time.





Let me give you another example, some lenders used a 2/28 ARM product so these borrowers can build up their credit over time. So if the initial 24 month rate is 8% and it adjusts on the 25th. payment to 10% look at the math based on a $100,000. loan on a 30 year payout. For this example I used a principle & interest payment only. At 8% the payment is $733.76 at the adjustment rate of 10% the payment increases to $877.57. The monthly increase is $143.81. You can see where I am going with this. This would put the monthly budget in a tailspin. Most of the candidates for this type of a mortgage live from paycheck to paycheck. A lender may just issue a interest only loan with negative amortization, in which principle is added to the end of the loan.






Another interesting element in many subprime loans are the pre-payment penalty for the borrower. This one amazed me, it is more often than not that a person would not have the ability to pay off the loan ahead of time or pay additional principle payments on the loan. But if they could they would be penalized for doing so. In theory the subprime market has merit. Under certain circumstances the borrower must be fully informed in what they are committing to. A large number of these candidates are long time renters, and fail to realize that they, NOT the landlord are responsible for all utilities, insurance, taxes and repairs of their home. The savings rate in the United States is at an all time low. This falls the hardest in the subprime arena. To give you an idea how large the subprime market is; in 2006 it accounted for $600 Billion which makes up 20% of the $3 Trillion mortgage market. (source CNN Money)






In closing lenders will tighten their standards and they should. The high risk borrower will be removed from the market. The credit score requirements will increase with better creditor documentation, increase on down payment requirements, and more liquid assets in reserves. I see more foreclosures on the horizon. Since 2006 the arms will not adjust until 2008 and all bets are off. I tell prospects with a low credit score to continue to rent, try to pay down debt. Do not take on any more bad debt, and to build up their savings account or start one. This way they can get into main stream financing and secure a brighter future. If you have any questions feel free to email me: findit@LehighValleyRealty.com Have a great day.

Foreclosure Assistance From PHFA

The handwriting is on the wall, the number of foreclosures is on the rise. In 2006 the Pennsylvania Housing Finance Agency saw a record number of applications for the Homeowner's Emergency Mortgage Assistance Program (HEMAP). HEMAP is made possible through Act 91 of 1983 and is only one its kind in the country. Homeowners who are more than 60 days delinquent on their mortgage are eligible to apply for this program. HEMAP is a loan program designed to protect Pennsylvanians 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. HEMAP funds loaned to prevent foreclosures are not a grant. The funds are a loan and must be repaid.


Once a homeowner receives notice that the mortgage-lending company is filing for foreclosure, the homeowner must meet with an approved credit counselor within 33 days of receiving notice. The credit counselor will help the homeowner prepares his application for HEMAP.


There are two types of mortgage assistance loans, continuing and non-continuing. Both are limited to a maximum of 24 months from the date of the mortgage delinquency or to a maximum of $60,000. whichever comes first. If I can help you in your Real Estate needs feel free to email me at findit@LehighValleyRealty.com If you like more info on this topic please visit: www.phfa.org/consumers/homeowners/hemap.aspx

What's yours? What's ours?

PPL had an informative piece on who is responsible for certain items connecting to your home. PPL will repair/replace your "Service Drop".
"The point of Attachment" the home owner is responsible for the anchor that attaches the service drop to your home. "The Service Entrance Cable" is the owner's responsibility, this runs along side the home to the meter and the line that connects to your service panel. "The Meter Base" is the responsibility of the owner, however the "Meter" is covered by PPL. "The Service Panel or Fuse Box" and all existing interior wiring is the homeowners responsibility. Have a great day!

Protecting Your Privacy & Property

An open house can be a great way to sell your home. It can also be an open invitation to prying eyes. To keep your personal life, well, personal, here are some steps you can take to snoop-proof your house when prospective buyers are around:

1. Clear away mail & paperwork from all surfaces (desk-tops, counter tops, coffee table). Lock up extra-sensitive documents (bank statements, passport, social security card, etc.).

2. Remove diplomas and personal photos from your walls.

3. Store family heirlooms. You don't want your personal effects to distract buyers. A tidy and uncluttered space will help them imagine themselves in the home.

4. Organize closets. Some visitors have no qualms about opening closets and cabinets and peeking into generally off-limit areas. Be prepared by making sure those hidden areas are in tip-top shape.

5. Please hide your prescription medication they can be stolen.

6. Please remove or lock up any guns or ammunition.

If you have any question feel free to email me: findit@LehighValleyRealty.com .

Interesting Fact

Generation Y is about to become a significant part of the homeowner market. Consumers born between 1974 and 1980 owned only 7 percent of U.S. households in 2005, but 26 percent of them plan to buy homes in 2007. (source: National Association of Home Builders)

Mortgage Insurance Now Tax Deductible

A federal law went into effect January 1st. 2007 making mortgage insurance tax deductible for the first time. The new law allows homebuyers to deduct the cost of mortgage insurance premiums on mortgages obtained in 2007. The change in the law is expected to help low-and moderate income buyer, the ones who are most likely to need mortgage insurance. Mortgage lenders require home buyers to pay for mortgage insurance if they make a down payment of less than 20 percent. The ability to deduct premiums on taxes will steer more people into taking a loan with mortgage insurance instead of one with a higher interest rate because of the tax deductible factor. Piggyback loans should slow because of this. The mortgage insurance agency predicts the average tax savings can range from $350.00 to $3,000.00 per year depending on the loan amount. Check with your tax advisor or accountant for additional info. (source The Pennsylvania Realtor 03/07) for more info feel free to email me: findit@LehighValleyRealty.com

Avoiding Home Buyer Headaches

1. Find a REALTOR® who you can relate to. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the agent you chose is both skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, any more than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.


3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.


4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.


5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.


6. Remember your home does not exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.


7. Don’t wait until you have found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.


8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.


9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.


10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is as a comfortable, safe place to live. I hopes this help you in your journey! If you have any other questions drop me a line at: findit@LehighValleyRealty.com

Title Insurance

Once in awhile I would have a buyer that questions the costs/benefit of title insurance. You can take your chances of purchasing real estate without it. I would strongly advise against it. If your placing a mortgage on your property, your lender will insist on their coverage. Title insurance will protect yourself from financial loss in the event regarding the rights of ownership. For instance if someone did not sign the deed during the chain of ownership, or someone signed a deed that was not the owner of the property. Title insurance will pay the costs to defend you against a covered claim. You need to have a owner's policy to protect your interest. Most Real Estate attorneys can conduct closings as well as a Title insurance company. If you need more info on this topic feel free to contact me at: findit@LehighValleyRealty.com

Reducing Energy Costs

One topic that draws a lot of attention is reducing energy costs. I put a few of them in this post. Since home heating oil is 6% higher this year, and last year it was 35% higher it makes sense to do some obvious measures. The basic one is caulking and weather striping doors and windows. If you have the money for upgrading your windows a good choice would be a maintenance free vinyl clad windows, with low emittance coatings to double insulated filled with krypton or argon gas. If you can't afford new windows, storm windows may be a good choice. If you like a good reference go to: http://www.efficientwindows.org/ . On Southern facing windows you can gain some free heat, by keeping the curtains open during the day. If you are low on funds or may be renting a home, you can purchase the 3M shrink wrap kits that do a nice job.



You can save on your lighting needs with fluorescent compact light bulbs, which also run cooler. Light dimmers work well and save on your electric bill. They do offer dimmers that are compatible with fluorescent bulbs.



To reduce your heating costs, invest in a programmable thermostat. It will save you money and extend the life of your furnace/boiler. If you have a warm air system change your filter every 30 days. This goes without saying, have your system cleaned at least once a year. If your furnace/boiler is over 20 years old it may only be 55% to 70% efficient. Today's models 80% to upper 90 percent efficient. If you do need a new unit, go for the most efficient model you can afford, in the long run it will pay for itself over time. If you would like more info on this topic & other energy related topics visit U.S. Department of Energy site: http://www.eere.energy.gov/ If you have a topic you like more info on, drop me a line at: findit@LehighValleyRealty.com

Savings With Gas Water Heaters

Natural gas water heaters remain a top value. Next to heating and air conditioning systems, they are the largest energy consumer in the home. Consider that natural gas water heaters:

Cost less than half as much as electric water heating (An average household can take 14 showers with natural gas water heating for the same cost as 7 with electric.)

Heat water twice as fast as electricity.

Are environmentally friendly (Emits far less of the major pollutants that cause poor air quality.) source UGI

How to Price Your Home in 2007

Being a Realtor for 24 years, I had my share of challenging moments. I have to admit, I am up to be challenged. I pride myself to be able to solve problems and keep the process moving. Having said that, one of the most sensitive topics to a Seller is pricing of their home. For the most part it is their largest asset they have and also tied into this is the emotional attachment they have to their home. My job as their counselor, is to do a good job and show them the current market trends. I do this by providing them with solid documentation of comparable properties within the same geographical area and similar amenities. I prefer to use settled properties within 6 months of closing.


If recent comparable sales are not available based on the amount of sales activity or a rural setting, I can extend the time line up to 9 months. Doing this can on an occasion be problematic, even if you have lots of supporting information to support your price range. The seller may want to go much higher. Let me give you a few scenarios.



Seller: I went to Zillow.com and I found out what my home is worth "X" amount....Well computer generated values are relatively new However recent statistics show they can be off by as much as 23% plus or minus. I am sure down the road the software will become reliable. This is what Zillow.com conveyed to Realtors' .."The Zestimate home valuation is Zillow's estimated market value of a home, given the data we have available. It is a starting point in determining a home's value; it's not an appraisal. (After all, you've been in the house and we haven't!)".



Seller: My neighbor got what they wanted last year! Last year is last year. I will research and find out exactly what they received and research if their was any closing costs paid by the Seller on behalf of the Buyer.



Seller: I like to try listing my home for "X" which is higher. You could, but here is where you may have some trouble. The most critical time in any listing is the first 21 days of the listing. This is when you will get your blast of activity. So you have to see the wisdom of pricing your home correctly from the beginning. It is quite possible if your home is listed outside the recommended price range, you may have no or little activity.



Seller: My neighbor said my house is worth "X" amount. Well unless your neighbor is going to purchase your home, it is a moot point.



Seller: I agree with your value, I would still like to try a higher list price....You can, but this may be a more prudent approach. How about investing $350.00 for an independent fee appraiser to come out to appraise your home. Please be advised a buyer going for a mortgage will have an appraiser from their lender to value your home. With this market in a correction mode, I have seen appraisal's coming in under value. The Buyer has the opportunity to walk away from the sale, or the Seller adjusting the sales price to match the appraisal. The worst case scenario is the transaction can falter. In closing, I am not saying it is doom & gloom for the Seller. What I am honestly trying to convey is you have to adapt to this current market. In turn you will receive a fair value for your home, and your home will not be on the market for an extended time. The great thing is, you get to move on with your life. My final thought, Zillow.com does not know the neighborhood, I do and possibly your neighbors. Have a great day!

Seller's Property Disclosure

A Seller disclosure used in Pennsylvania is a 6 page document that must be filled out by the Seller prior to marketing their home. If it is an estate, foreclosure, or relocation buy out, they are not required. You may ask, What is a Seller Disclosure? It asks a series of questions, about all areas of the home, if you had any problems with the home, if you pulled permits for improvements to the home. If their are defects in the home. Do you have water leakage in the home? Was your home ever treated for wood-destroying insects? A big concern addressed are structutural items. You want to know what your source of drinking water is, this is addressed in this document. You will also know what appliances are remaining and if they being sold in a "as is" condition. A good tip! If appliances are staying, with the property, make note of model & serial number so they are not switched out. The disclosure will also state what tests were performed to the property, and the results of them. In a nutshell, it sparks the seller's memory on the condition of the home. Feel free to contact me if you need more info, on this posting or others. Have a great day!

Protecting Your Investment With Home Warranties

A past client of mine emailed me from Arizona this afternoon. I met them over 20 years ago and sold them their 1st. home. I listed and sold the same home last year. They wanted to know the name of the Home Warranty program that I placed on their home when they lived in Bethlehem. They would like the same program on their new home. This prompted me to to write a little bit on "Home Warranty" programs. First off they are great and well worth it for both the buyer and seller. They reduce a lot of concerns for both parties. What do they cover? Each vendor has their own coverage limitations. For the most part standard coverage are as follows, HVAC system, ductwork, plumbing system, Whirlpool motor & pump, sump pumps, water heater, electrical system, exhaust fan, built-in microwave, dishwasher, garbage disposal, cooking range, optional coverage would consist of swimming pool and built-in spa equipment, refrigerator, washer & dryer, and well pumps. Please be advised these do not cover a pre-existing conditions. You should be expected to pay a $60.00 deductible per occurrence. If you have lets say 3 plumbing leaks, this would be considered one deductible. The cost for a program is around $425.00.

Save Up By Saving Water

With over 2 billion Energy Star-certified products sold in the U.S. since 1992, energy-saving appliancesare becoming the rule, rather than the exception. Now, the EPA-the program's creator-is trying to duplicate its success with a new water conserving campaign called Water Sense. First up is a label for toilets that use less than 1.3 gallons per flush-that's 20 percent less water than the 1.6 gallons currently required by federal law. It'll be a few years before Water Sense sets the standards for other products, such as washing machines and dishwashers. Until then, follow these five simple steps to make your home more H2O-efficient:

1. Put a pitcher of drinking water in the fridge; letting the faucet run until water gets cold wastes two gallons per minute.
2. Fix leaks pronto. One drip per second adds up to 2,700 gallons a year.
3. Hose down the garden in the early morning or at dusk to avoid losing water to evaporation caused by the hot sun.
4. Don't use your toilet as a trash bin. Every unnecessary flush equals 1.6 gallons of wasted water.
5. Scrape, rather than rinse, plates when loading the dishwasher. (source Natalie Rodriguez)

What Is Involved With a Building Inspection?

I received an email the other day from Debra from Emmaus, PA. She wanted to know what are the ins & outs of a building inspection. Deb, the home inspection is quite interesting and educational to the new home buyer. I liked to equate it as a crash course on being a new homeowner. A good inspector will spend anywhere from 3-4 hours inspecting & performing tests on the building. During the course of the inspection, he or she will explain all the functions & maintenance of your home. I would advise asking many questions during your visit. I would like to give you a synopsis of what to expect. Please be aware, some of these tests & inspections may or may not pertain to the home your are purchasing. Lets start with the outside, the inspector will look at the lot, grounds, drainage, retaining walls, fences, foundation, windows, doors, decks, patio, porches, roofs, chimneys, gutters, garages, pool and spa, and any out buildings. On the inside, the inspector will check out the kitchen, appliances, bathrooms, ceilings, walls, flooring, fireplaces, screens, stairways, attic, insulation, basement, and obvious health & safety issues. On the mechanical side the inspector will check your, electrical, plumbing, HVAC systems. He should also give you tips on what may need servicing on a periodic basis. The tests that can be performed are for Radon Gas, Septic Inspection, Mold and Air Quality, Lead Based Paint, Wood Destroying Insects, Bacteriological Water Test for additional fee they can test for e-coli, scan for hardness, metals & pH. Other tests can be EIFS Inspection, that is a stucco like exterior coating that can be problematic, Moisture Intrusion Inspection & Carbon Monoxide. The costs for the inspections can range from $200.00 to $700.00 depending on what you like to have done. Thanks for your question.

Smart Homes Get Smarter

AT&T, iControl and Nobu offer some of these services for a monthly fee.

1. Smart sprinklers turn off when it rains.
2. Sensors detect when the medicine cabinet opens.
3. All blinds in the house are centrally controlled.
4. When the phone rings, caller ID is displayed on the TV.
5. The "movie setting" dims the lights and starts the popcorn maker.
6. Lights can be turned on while you're on vacation.
7. Live video of your pets or nanny is sent to your phone.
8. Motion sensors send a text message when your windows or doors open.
9. The garage door can be opened or closed from work.
10. The pool temperature can be set on your drive home. (source Business 2.0)

Why Owning Real Estate Can Make You Rich

People who say it's cheaper to rent than own are simply wrong. Under certain circumstances in certain markets (where real estate values are overheated and rents low), there may be some short-term advantages to renting. But over the long haul, renting is simply not a good deal (except for the landlord whose mortgage you are paying). If you don't own your home, you can easily wind up spending more than half a million dollars on rent during the course of a lifetime-probably a lot more. Let's do the math. Say your rent is $1,500. a month. Over 30 years, that would add up to a total of $540,000. in monthly payments! But that's only if your rent never goes up-and whose rent stays the same for 30 years? And if you ever have to move-well forget about it! You will have a mortgage payment, maintenance, taxes, insurance. However it will be yours! (source David Bach)

Get Prepared to Purchase!

I wish I had a quarter of all the potential buyers' that wanted to look at homes that were not pre-approved for a mortgage. This is the 1st. step that you have to explore. Guess what, it is easy! I can assist you in getting pre-approved not pre-qualified within 24 hours with a good "LOCAL" lender. When you are pre-approved, you are in a position to move forward on a home in "YOUR" price range. You now know if your credit is in good shape, if not what steps you need to know to clear up items on your credit report. When you are pre-approved, you are a more serious buyer, and REALTORS like that. To get pre-aproved follow this link: www.ehjmmortgage.com

Defend yourself from "MOLD"

Follow these suggestions to keep mold from growing in your home:

1. Check the exterior of your home regularly for accumulation of ground water.
2. If you ever see bubbling or dampness in a wall, get the wall opened to see what's causing it.
3. If your house sits above a foundation and there's a heavy rain, put electric fans under the house to dry the ground.
4. Fix leaky faucets, pipes and other leaks as soon as you find them.
5. Have your heating and air conditioning system serviced each year.
6. Clean and dry out wet or damp areas within 48 hours.
7. Keep indoor humidity below 60 percent by venting bathrooms and dryers to the outside, using air conditioners and dehumidifiers, using exhaust fans or opening windows when cooking, washing dishes or cleaning, and increasing ventilation.
8. If you have a leak that saturates carpet, ceiling tiles or upholstery, remove them.
9. Use paint that has an EPA-approved mold inhibitor.
10. Clean kitchens and bathrooms with mold-killing cleaners.
11. Don't carpet bathrooms.
12. Don't put vinyl wallpaper on walls that are at risk of sustaining water damage.
(source Broker Agent News)

Free Credit Reports

Take advantage of receiving up to 3 FREE credit reports per year. Keep tabs on your credit.FICA scores range from 375 to 900. In general, the higher your credit score the better you will be able to obtain credit. A FICA score under 620 makes obtaining credit difficult. You should identify what your score is and if it isn’t a good number you should then work on making it better. Creditors use your FICA score to determine whether to give you credit and sometimes base interest rates on this score. It is a very important number to know. Below is the FICA Score Ranges and Grade

* 750 and above Excellent A++
* 680 to 750 Very Good A+
* 620 to 680 Good A
* 580 to 680 Above Satisfactory B
* 550 to 580 Satisfactory B-
* 480 to 550 Below Satisfactory C
https://www.annualcreditreport.com/cra/index.jsp

Rising Housing Costs Outpace Incomes

The cost of housing has increased faster than the average income over the past five years, causing homeowners and renters alike to pay a larger percentage of their salary in housing costs. A survey published in October by the U.S. Census Bureau finds that 34.5 percent of homeowners spend more than 30 percent of their income on their mortgage, up 5 percent since 2000. The percentage of renters spending more than 30 percent of their income on rent has risen to 46 percent, a 6.7-percent increase. U.S. residents face an increased housing burden in virtually all areas of the country, although Californians were hit the hardest, paying nearly 48 percent of their income on housing. (source The Residential Specialist) January 2007

Quick Fix Up

Here are five improvements you can make that might help you sell faster in a cooling market:

1. Create a welcoming entrance. Make sure your front door is clean, polish the hardware, ( or replace it if necessary) and repaint the door, if it is in poor shape. Finally, add a new doormat, update your mailbox, and place attractive greenery or flowers on either side of the door.
2. Remove clutter and put it in storage. Box up anything you won't use in the next few months (including holiday decorations, seasonal clothing or sport equipment, old toys etc.) and send it to a storage facility.
3. Replace outdated window treatments with simple white mini blinds or wood blinds, cut-to-measure at a home center. This is a fairly simple fix that can refresh your rooms in just one weekend.
4. Update your storage space with closet systems so the closet looks organized not cluttered.
5. Have wood floors professionally cleaned and polished. If you have worn, dirty, or badly colored carpeting with wood underneath, tear it out and expose the wood.

Lehigh Valley Real Estate

The Lehigh Valley Real Estate market is still viable and continues to grow. However, listing inventory is starting to increase and average days on the market are about 50 days. My opinion is that market is correcting itself and 2007 should be a good year for both buyers and sellers. Buyers' have more inventory of homes to choose from. Sellers' should take a close look at their homes to make obvious repairs, neutralize, & remove clutter. Sellers' should price their homes to market value and look at any & all offers with an open mind. For more info on Lehigh Valley Homes visit: www.LehighValleyRealty.com