Foreclosure prevention 101

CNN reported today that the administration's foreclosure prevention plan which was launched in April 2009 has had minimal impact. The report noted that only 5% of trial modifications on loans owned or guaranteed by Freddie Mac were converted to long-term adjustments. In common language, this means that a low percent of homeowners who are over burdened by high mortgage payments have been able to work with their financial institutions to adjust their monthly payments and prevent foreclosure.

From the looks of it, the problem has been the difficulty for the consumers to connect with the right organizations. When a homeowner is behind in their payments, they will usually delay talking with anybody especially their banks or financial institutions- the ones they owe money to.

I can't tell you how often I have talked with homeowners regarding their housing dilemma and at the point of their crisis, they feel very helpless. It may seem hard to reach out for help. Also, the massive amount of paperwork required to qualify for this program may deter homeowners. Finally, there are numerous organizations out there that have been profiting from these homeowners and we should all beware of them.

If you or someone you know is in a precarious housing situation, I suggest that they get to know this federal program. The Federal Treasury has a concise (although a bit tedious) description of the program. The most current information on this program is available at the government website: www.makinghousingaffordable.gov. To get one-on-one help, contact a housing counselor a the Department of Housing and Urban Development (HUD) at 1-888-995-HOPE (4673).

Walking Around Town

Everyone gave us a warning about the "snow" we were supposed to get this weekend although I could sense a little excitement in those words of foreboding. We are, after all in Guymon, the dust bowl and home of the tumbleweeds. A little white powder would look nice especially near Thanksgiving. We woke Monday morning and this is the total accumulation we got.

Feeling inspired by the whiff of cool air (having lived in cooler Michigan for 10 years), I gathered my Uggs, coat, hat and gloves and decided to walk around town. Guymon is a small town where you can get anywhere in less than 10 minutes. This morning I decided to walk down to the coffee shop which is a good 10 blocks (and spent time with the Coffee Club). After coffee I also walked down to the office which was 6 blocks away. Cars drove by possibly wondering why I was walking. I certainly was the only one traveling by foot. Friends who I met at the coffee shop mentioned that people in Guymon are not used to seeing walkers and that people may actually think that I needed a ride. A friend of mine does not walk alone because of safety concerns.

I love to be out walking or running. I love walking because it gives me a chance to listen to, smell (Yes! and sometimes it does smell) and feel the vibrations of the city. Lots of cities are actually desirable for their walkability. Transforming a city only necessitates a change in behavior. And, imagine the fossil fuel we can save my not making those unnecessary trips.

So, if you see me walking or running, don't worry about me. I am just getting to know my hometown.

First Time Home Buyer Credit Extended!!

Last Friday, the White House signed the extension of the tax credit program for first time home buyers of up to $8,000 and also added tax credits for repeat home buyers for up to $6,500. Repeat buyers must have been in their homes for at least five of the eight years. Each of these credits were extended for home purchases with signed sales contracts by April 30,2010 and which close on or before June 30, 2010.

Click here to learn more about the eligibility and requirements.

Please help spread the word!

How much is my home worth?

Listing at the right price is one of the most important decisions to make when selling a home. I always tell clients that when they are selling their home, the bottomline is the the price. Be it a beautiful home or a fixer-upper, someone out there will be willing to buy your home....at the right price.

How can we figure out this "right" price?

The right price is not how much you bought your house for (the environmental and economic conditions may have changed from the time you bought to the time you plan to sell). The right price is certainly not how much it cost you to improve or upgrade (some upgrades usually do not add value). And, it is not the price you think it is worth because your home is special to you.

One rule of thumb I look at is price per square footage. In Guymon, this tops at around $100 per sq. ft. This means that the home is move in ready, updated and includes central heat and air and a garage. If the home needs an updated kitchen or a is in disrepair, the price per sq. footage can go as low as $30. If the home has unique features or is in a special location, the price may climb to $120 per sq. foot.

The "right" price is where supply and demand intersect in the marketplace. In a marketplace where there is not much supply of housing (i.e. Guymon), sellers can pretty much drive prices higher. In the past year, while the price of housing has declined all over the country, the price of housing in Guymon has been slightly increasing. This is because there is not enough stock available. Conversely, there is still much demand for housing as the population continues to grow and workers coming in to the community decide to stay.

The best way to determine the "right" price for your home is to look at how much comparable properties have sold in the past 12 months and how much comparable properties are being sold currently in the market. A knowledgeable real estate agent should be able to help you analyze comparable properties in the market.