Make The Final Walk-Through Useful

Here're some good ideas for that final walk through before closing. It's usually a day or so before closing and all inspection items have been completed, you hope. For those who like check lists, check this out...

Lease Options, Wraps, other ways to get a property

Recently a couple of clients asked me about rent-to-own, rent-to-buy, lease option and other alternatives to a straight purchase or a straight lease. This article by Karen J. Radakovich, Esq. (counsel with Frascona, Joiner, Goodman, and Greenstein) discusses some of the pros and cons of this netherland between leasing and purchasing a property. You may care to read this article before contacting your lawyer to draw up an agreement that links renting and buying.

Spot On: Getting a Mortgage Loan Today

This recent article in Forbes correctly identifies the current market for home mortgages.

I would further add that a buyer putting down 25%, who has substantial assets liquid in the bank, a stellar credit score, and is no longer working for a salary (read retired or independent contractor), will find it harder to get a loan for an investment property than a person of modest means and decent credit scores with 3.5% down purchasing their primary residence.

Once again the resale markets for residential loans are driving the market. What is and is not possible is not governed by ability to pay as much as ability for the lender to resell the loan with other mortgage backed securities. That was the essence of the mortgage crisis earlier. To the other absurd extreme we go! The good news is that people are gettting loans. It's just harder across the board, no matter how qualified a buyer is.

New EPA Lead Requirements for Fixer/Flippers

Just out last month are some important new requirements for anyone renovating and planning to sell or rent a home older than 1978. We now have SAFE LEAD PRACTICES. As you probably know lead was used in many paints until 1978 and in buildings circa pre-1978 the dust created when walls and ceilings are worked on often contains lead. In order to protect more people, especially children, from lead poisoning, all contractors doing this work are supposed to be certified by the EPA. Further, the seller will be held liable if the contractor doesn't follow safe practices in handling the dust. For the 12-page details go to http://bbakerowens.yourcastle.org/bc/documents/yourcastle/renovaterightbrochure.pdf

Yes You Can Buy After a Short Sale

This news just arrived in my email from one of the students in my monthly class for marketing homes, "What Does the Buyer Want? 6 Keys to Selling", Max Boyle. Max is a lender with Primary Residential Mortgage (303-600-8248). This article that he sent shares good news for buyers who have lost a home through a short sale or a deed in lieu. As you know any of the distress sales hurts the seller's credit for a number of years. What you may not know is you can still purchase a home after a specified waiting period and after you get back on your feet and strong financially. Here's the scoop.


Great News for Buyers with a Short Sale!

New Eligibility Rules Announced From Fannie Mae!

There's great news from Fannie Mae for home buyers who have experienced a short sale or deed in lieu of foreclosure. To help the housing market's continued stability, Fannie Mae is changing the "waiting period" (i.e. the amount of time that must elapse after the preforeclosure or short sale event) before home buyers can qualify for a loan. Several factors will impact these changes, including the required down payment or loan to value (LTV) for the transaction and whether extenuating circumstances contributed to the individual's financial hardship (e.g. a job loss). Feel free to check out the full announcement by Fannie Mae. Here's the executive summary:
Waiting Period Requirements by Preclosure Event
Deed-in-Lieu of Foreclosure
OLD: 4 years, Additional requirements apply after 4 years up to 7 years
NEW: 2 years – 80% maximum LTV ratios
Preforeclosure Sale
OLD: 2 years
NEW: 4 years – 90% maximum LTV ratios
Short Sale
OLD: No policy currently exists specific to short sales
NEW: 7 years – LTV ratios per the Eligibility Matrix

If you've had extenuating circumstances that caused the loss of your home, the new waiting period is 2 years – 90% maximum LTV ratios for people who had a deed-in-lieu of foreclosure, preforeclosure sale, or a short sale.

Note that the terms 'short sale' and "preforeclosure sale' are both referenced in Fannie Mae’s announcement and have the same meaning – the sale of a property in lieu of a foreclosure, resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.The bottom line: Buyers who have experienced a short sale or deed in lieu of foreclosure may be eligible for financing sooner than previously expected…especially if they have 20% to put down.

Colorado Gardening

Spring has sprung. The grass is riz. I wonder where the birdies is?

Trees are blooming. The grasses are greening. The hardy plants are returning. Ah Spring! When a friend asked about gardening, I remembered to refer her to the Sunset Western Garden Book and to my favorite reading, Colorado Gardening, Month-by-Month. For winter dreaming and planning these books are great.

However for vegetable gardening, I enjoyed the direct information in Square Foot Gardening. Making your garden productive requires a fair amount of soil augmentation work, especially where it seems our soils are either clay or sand with little humus or organic matter. A compost pile can help you make a rich soil from simple kitchen wastes and some ingredients from the nursery or hardware store. Now's a great time to be working the ground. Some folks have already planted the cold weather starts. Since Colorado weather can be unpredictable (late snows, chilly or hot summers, early snows or Indian summers) we have some extra challenges in timing the plantings and determining whether to mulch much or not. Further, the Colorado State University extension has good resources on-line and for specific questions, the extension agent can be helpful.

Finally, the Denver Botanic Gardens is a source of information and beautiful inspiration for gardeners.

Do you garden? What advice would you share with my friends who are just beginning to dig in the dirt this Spring?

Colorado Bucket List

With weather turning nicer and folks planning holidays this bucket list from Joe at Land Title caught my eye. Life's meant for living, so enjoy! Colorado has some wonderful things to experience. First, Joe's list, then some of my favorite additions. Finally, send me your Colorado additions.

Land Title's List of Things Not to Miss in Colorado:
Visit Air Force Academy * Take in a game at Falcon Field * Relax or golf at The Boradmoor * Check out Buckskin Joe's Frontier Town and Royal Gorge Scenic Railway * Explore Cave of the Winds * Visit Colorado National Monument, Grand Junction * Raft the Colorado River * Tour the Colorado State Capitol Building (the Capitol Dome is now open) * Take the train ride from Denver to Glenwood Hot Springs * Tour the Denver Mint * Ride the Durango and Silverton Narrow Guage Railroad * Hike Garden of the Gods * Tour the Grand Junction Wine Country * Visit Great Sand Dunes National Park * Enjoy High Tea at the Brown Palace * Spend at least a day at Mesa Verde National Park * Photograph the Maroon Bells in Aspen * climb or take the cog railway to the top of Pikes Peak * Take in a show at Red Rocks Ampitheatre * Drive the San Juan Skyway * Snowcat ski in Steamboat Springs

When our kids were little we explored Colorado together. Three resources were wonderful in giving us ideas that were "age appropriate" for the kids or for us to explore with friends of all ages who were visiting Colorado. Places to Go with Children in Colorado by Meitus and Thorn, divides the state up into areas. Highlights include activities, sights, and fun places to eat with costs, addresses and contact information. Real Cool Colorado Places for Curious Kids by Liggett and Mack does the same and adds friendly facts about wildlife, history, and geology. For the general audience The Colorado Guide by Caughey and Winstanley is my favorite resource. Each part of the state has a description of the area, history highlights, directions, major attractions with costs, festivals and events, outdoor activities, other attractions, accomodations, places to eat, etc. So, no matter where we went, there was a tour guide to give all of us choices for our fun times together.

What is on YOUR bucket list for Colorado? Where do you recommend visitors go to experience Colorado? Thanks for sending me your recommendations!