HOUSING FINANCE AND POLICY UPDATES

HOUSING FINANCE AND POLICY UPDATES FREE Independent Foreclosure Review This policy is for borrowers who believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings. DEADLINE: Complaint forms must be submitted online or postmarked by July 31, 2012 Specified mortgage servicers were required to send mailings to potentially eligible borrowers and former homeowners on how to request a review of their case with the mandatory form. But lenders may not be able to reach borrowers who lost their homes to inform them that they may be eligible. Know anyone who has suffered financial harm due to errors or other problems in the foreclosure process? He or she may be eligible for FREE Independent Foreclosure Review. BEWARE of anyone who offers to complete the Request for Review Form for a service fee. Eligibility: The mortgage must have been in active foreclosure process between January 1, 2009, and December 31, 2010; the property securing the loan must have been the primary residence; and the mortgage must have been serviced by one of the identified mortgage servicers. For more information and to see a list of the mortgage servicers, go to: https://independentforeclosurereview.com or call 1-888-952-9105 M-F, 8 a.m.–10 p.m. ET, or Sat. 8 a.m.–5 p.m. ET. National Foreclosure Settlement The agreement will be executed over the next 3 years. In the next 3 to 6 months, a settlement administrator, Maryland Attorney General and mortgage servicers will work to identify homeowners eligible for immediate cash payments, principal reductions and refinancing. Banks include: Ally Financial/GMAC, Bank of America (plus Countrywide), CitiBank, JP Morgan Chase (plus Washington Mutual) and Wells Fargo. Those eligible will receive letters. (Loans owned by Fannie Mae or Freddie Mac are NOT involved in the settlement.) The settlement provides financial assistance for: • Individual borrowers who were victims of unfair servicing practices and were foreclosed upon between January 1, 2008 and December 31, 2011. • Homeowners needing loan modifications now, including first and second lien principal reduction. Servicers must work off an estimated $808 million in principal reduction and other forms of loan modification relief for Maryland homeowners. • Borrowers who are current in their payments, but underwater. Eligible borrowers may refinance at today’s historically low interest rates. Servicers must provide an estimated $64 million in financing relief for Maryland homeowners. • Borrowers who lost their homes to foreclosure without losing the right to sue banks. An estimated $24 million will be distributed to these Maryland borrowers. • Housing counseling and other state-level foreclosure prevention and housing programs. For more information on the Mortgage Servicing Settlement, go to: www.NationalForeclosureSettlement.com For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating mortgage servicers. Borrowers may contact the banks directly, if additional information or verification is needed. BEWARE! Scammers are already at work trying to capitalize on the national mortgage settlement to access victim’s personal financial information—or worse, charge fees for this FREE program Maryland Attorney General’s Office Call Center: 410-576-6300 or 1-888-743-0023 Maryland HOPE Hotline: 1-877-462-7555 Capital Area Foreclosure Network (CAFN) (Statewide Referral to Spanish/Espanol Language Assistance.) 1-888-794-8830 (9:00 am to 5:00 pm, M- F) Ally//GMAC: 1-800-766-4622 Bank of America (and Countrywide): 1-877-488-7814 Citi: 1-866-272-4749 JPMorgan Chase (and Washington Mutual): 1-866-372-6901 Wells Fargo (And Wachovia) : 1-800-288-3212 News on Home Affordable Foreclosure Alternatives (HAFA) The Federal Housing Finance Agency (FHFA) has announced a new directive that requires servicers of Fannie and Freddie loans to roll out in stages, starting in June 2012: • Review and respond to borrower requests for short sales within 30 days after receipt of a short sale offer and a complete borrower request. • If the review is still under way after 30 days, give the borrower weekly status updates. • Advise the borrower of the final decision within 60 days after receipt of a short sale offer and a complete borrower request. The new timelines apply both to HAFA loans and to other short sales approved by Fannie Mae and Freddie Mac. Additional enhancements are planned by the end of 2012 addressing borrower eligibility, simplifying documentation, valuing property, payments to subordinate lien holders, and mortgage insurance. FHA Premiums for Refinance In April, FHA increased upfront and annual premiums for new loans. But many real estate professionals missed the second part of the announcement: PRICE CUTS for FHA Streamline Refinance Option for loans originated on or before 5/31/2009, effective 6/11/2012 Upfront premium, 0.01%; monthly premium 0.55%. Estimated savings of $3,000 per year for the average loan. Borrower must be current on payments, underwater mortgages are okay, “compare ratio” is not required by lenders. Go to: http://portal.hud.gov/hudportal/ HUD?src=/program_offices/housing/sfh/ buying/streamli (or contact a HUD certified housing counselor or any HUD/FHA approved lender)

6 Keys to Ensure an Approved Home Mortgage

Qualifying for a mortgage might have been easier just a few years ago, but today’s tight lending standards help ensure borrowers have the financial ability to keep the homes they buy as long as they want to. If you’re applying for a mortgage today, here’s what you can do to ensure you quality:

1. Boost your credit score to 740 or higher. Though loans are available to borrowers with lower scores, with a FICIO score of 740 or higher you’ll get best interest rates and lowest down-payment requirement.
2. Provide your income. Lenders like to see consistent income over a period of two to five years. Of course, you’ll also need enough predictable income to handle your monthly loan payment, along with property taxes and insurance.
3. Flash the cash. The more down payment you invest in your home, the better risk you are considered by lenders. Lenders consider a 20% to 30% down payment ideal, with a solid emergency fund of four to six times monthly income. You may get a loan with less, but why not to go for the gold?
4. Minimize debt. Pay down credit cards and retire car loans debt, etc. to improve your debt-to-income ratio, leaving more room in your budget for mortgage debt.
5. Tell the truth. Your loan application information will be verified through the underwriting process. Remember, incomplete or false disclosures will simply derail lender confidence in you.
6. Avoid last-minute gaffes. Lenders will calculate your debt-to-income ratio at the beginning of the loan process. They’ll also pull your credit report justr before the settlement. Don’t change the picture by depleting cash resources, increasing debt or opening new credit accounts.

Call me if you have any questions: 443-527-4375

Buy your next home for nothing down

Good things come to well-qualified buyers


By Robert J. Bruss
Inman News

Are you old enough to remember Robert G. Allen's bestseller real estate book "Nothing Down" from the early 1980s?

I'm showing my age, but I vividly remember that book because a) it explained dozens of creative real estate finance methods, and b) I actually used several of those techniques to buy profitable property for nothing down.

Most of those methods are still viable. But for the majority of today's home purchases, there is no longer a need to use creative seller financing and other innovative methods.

Today's mortgage lenders have become very savvy about the profitability of making low- and no-down-payment home loans, even to borrowers with poor credit. Last year, according to the National Association of Realtors, over 30 percent of home sales involved 100 percent financing in one form or another.

THE DEFINITION OF "NOTHING DOWN."

In real estate "nothing down" means zero cash from the buyer's pocket. However, it doesn't mean the seller won't receive 100 percent cash for the home. Personally, I bought several zero-down-payment houses where the sellers walked away with all cash.

Nothing down really means the buyer is borrowing the entire purchase price.

To illustrate, when you read in the newspaper that a commercial property sold for $50 million, do you think the buyer paid $50 million cash from his savings account? Of course not. Using a combination of a first mortgage, perhaps a second mortgage, plus a bank credit line, the investor-buyer probably didn't even pay the closing costs from his pocket. The same procedures apply to home purchases.

BUYING A HOME FOR NOTHING DOWN IS EASY.

If you are in the market to buy your personal residence but you are a little "cash-challenged," don't let that stop you from purchasing for zero cash from your pocket, just like the real estate tycoons.

Although not every mortgage lender offers zero-down-payment mortgages, a savvy mortgage broker can arrange your no-cash home purchase. Especially if you are a first-time home buyer (defined as not owning a house or condo within the last two years), most mortgage lenders offer extra-easy home finance plans.

But there's a catch. You will need 1) a reliable source of income, and 2) a good credit score. Many lenders now offer "stated income" mortgages where, with good credit, you don't even have to prove your income, such as with W-2s or tax returns.

If you qualify, and many home buyers can, lenders will gladly finance 100 percent, sometimes even up to 125 percent, of your purchase price. But you will probably pay an above-market interest rate, often including PMI (private mortgage insurance) premiums. In other words, "nothing down" isn't cheap.


HOW TO DETERMINE IF YOU ARE A "WELL-QUALIFIED BUYER."

If you pay attention to those "no cash required" radio and newspaper ads for some new houses and condos, in the disclaimer you will usually spot the words "well-qualified buyer." That means you must have good income and good credit.

To check your credit reports from all three national credit bureaus, and determine your FICO (Fair Isaac Corporation) score which most lenders use to rate you as a "well-qualified buyer," just go to www.myfico.com.

For $44.85 you will receive your three credit reports, and your FICO credit score. Each credit report will be different, so take time to compare them and follow the instructions to correct any errors.

Or, at no cost, you can obtain all three of your credit reports at 1-877-322-8228 or www.annualcreditreport.com. However, you will not receive your very important FICO score at this free source.

After checking your credit reports and FICO score, the next step is to get written preapproval for a no-down-payment mortgage. Most major mortgage lenders offer this service, or a mortgage broker can obtain a lender's preapproval written mortgage commitment at a low or zero up-front cost. To obtain a zero-down-payment mortgage, most lenders require a FICO score of at least 680.

Armed with your lender's written preapproval mortgage promise (subject to reasonable conditions, such as appraisal of the home you decide to buy), then you can shop with confidence knowing the maximum mortgage you can obtain.

But don't settle for a lender's worthless "pre-qualification" letter, which just means, "We think you can qualify for a mortgage but we really haven't checked you out yet."

HOW TO BUY A HOME WITH 100 PERCENT FINANCING.

However, if you can't qualify for a no-down-payment mortgage, don't give up. There are many alternatives. For example, many buyers' real estate agents recommend 80-20, 80-10-10, or 80-15-5 mortgage choices. The 80 means the lender makes an 80 percent first mortgage, and a 20 percent, 10 percent or 15 percent second mortgage, often in the form of a home equity loan.

If you can make a 5 percent to 10 percent cash down payment, that makes obtaining financing even easier. A special advantage of keeping the first mortgage at 80 percent or less of the home purchase price is you will avoid the dreaded PMI (private mortgage insurance) premiums.

However, in the right circumstances, "seller financing" might be your best and least expensive choice.

Large real estate fortunes have been earned with this method. For example, real estate tycoon, John Schaub, reports in his recent bestseller book, "Building Wealth One House at a Time," he never obtains bank mortgages when buying.

Another example is small-town realty mogul, Jay DeCima, who explains in his bestselling book, "Start Small, Profit Big in Real Estate," why he buys ugly run-down houses, which no mortgage lender, except the seller, will finance.

LEVERAGE ADVANTAGES OF NOTHING DOWN.

Another name for buying real estate with little or no cash is "high leverage." It simply means the borrower controls the entire property with a small amount of cash.

The big leverage benefit is usually a high percentage profit-per-dollar invested if the property goes up in market value due to capital improvements or sales price appreciation.

For example, suppose you buy a house or condo for $200,000 with nothing down. Because of your good income and good credit, the mortgage lender approves a $200,000 mortgage. Suppose that house appreciates in market value by 5 percent annually, or $10,000 in the next 12 months. What percentage return is that on your investment? The correct answer is "infinite," because your only out-of-pocket expense was probably for closing costs.

However, suppose instead you paid $200,000 cash for that same home and it appreciates the same 5 percent in market value ($10,000) during the next 12 months. Now your return on investment is a mere 5 percent. Of course, you avoided the tax-deductible mortgage payments, so those savings should be added to your return.

As the years go by, the advantages of high leverage on your home usually become greater each year. Of course, there is also risk, especially if you have to sell the home within the first five or 10 years when you don't have much equity.

SUMMARY: There are many advantages, and a few disadvantages, of buying a home for nothing down. But the pros usually outweigh the cons. However, as Allen often said in his "Nothing Down" lectures, "Buying real estate for nothing down is easy; the hard part is making the monthly payments."

Go to www.LagretRealEstate.com

Selling? Here's your to-do list

When the housing market's iffy, it's more vital than ever to make home repairs, spiff up the kitchen and bathroom, get rid of odd paint colors and bare patches of lawn, and consider other improvements.

By Amy Hoak, MarketWatch

The interior walls are neutral. The clutter is a distant memory. A shower door has been replaced; even the design of the bedspread has been factored in. A professional inspection and appraisal have limited any surprises down the road. Now, the Green family's Chicago home is ready for sale.

"We're paving the road to make the closing process much smoother," Dan Green said.

He even created a blog, partly as a marketing tool for his Lincoln Park neighborhood home.

In an uncertain market, a little extra work can mean not only a smoother sale or a higher listing price, but also determine whether sellers get to the closing table at all.

"Talk to Realtors and they will tell you anything you do cosmetically to increase curb appeal is going to help the resale value," said Sal Alfano, the editor of Remodeling magazine.

In addition, many buyers stretch financially to get into a home, so they may pass over one needing too much work, said David Lupberger, a home-improvement expert for ServiceMagic, which connects homeowners with screened home-service professionals.

"The last thing you want is a list of projects that has to be taken care of," he said.

Here's the bright spot: Some of the most effective improvements aren't very expensive. Giving rooms a fresh coat of paint, for example, quickly pays off.

If you're planning to add a "for sale" sign to the lawn this spring, consider these five areas while creating your to-do list.

1. First impressions count

You want to make a good impression from the moment potential buyers pull up to the house, experts say. First glimpses will include the home's exterior, the shrubbery, the gutters and the front door.

Peeling trim could be a kiss of death. Paint the exterior of the home in an odd color, and you could turn away potential buyers before they come inside. Don't underestimate the importance of good lawn care, either.

"A lawn that looks good on the outside gives the impression that someone cares about that home," said Trey Rogers, a professor of turf-grass management at Michigan State University and the author of "Lawn Geek," a book of tips on how to maintain a lawn.

His advice is to "keep it green and keep it cut." Mow the lawn to about 3 inches high at least twice a week when a home is on the market; 2 inches if the home is in a Southern state. The more it is mowed, the denser it will become. And get on a fertilization program, Rogers said, starting at the beginning of the season.

If there are small spots to fill in, bypass store-bought sod and instead borrow some grass from an inconspicuous place elsewhere on the lawn, Rogers said. The grasses will match better that way.

Early birds selling at the tail end of winter should keep the sidewalks shoveled if there is snow on the ground.

2. Neutralize and de-clutter

When it comes to preparing a home's interior, any real estate professional or stager worth a paycheck will advise a client to go with neutral colors.

"People can't visualize beyond what they see," said Jim Gillespie, the president and CEO of Coldwell Banker. Neutral colors, including beige and ivory, have the added advantage of making a room appear larger, an effect that Dan Green noticed right away when he repainted his bedroom walls.

Removing the home's clutter is also extremely important for helping potential buyers to imagine their family living in the home, Gillespie said.

Beyond that, do some spring cleaning: Shampoo the carpets, rebuff hardwood floors and oil wood cabinetry.

3. Consider replacement projects

Sellers might consider getting a home inspection before listing their home as a way to detect any overdue replacement projects, Gillespie said. The sellers can either fix any problems or give the buyers a discount to account for the repairs. Gillespie advocates making the necessary repairs before selling.

Homebuyers recognize the value of a house that doesn't need major repairs, said Remodeling editor Alfano.

"The house is probably not going to move, or you're not going to get all the value out it, if the new buyer knows they're going to have to replace the roof sometime soon," he said.

According to the 2006 "Cost vs. Value" report from Remodeling magazine, a roof replacement for a midrange home cost an average of $14,276 and returned $10,553, or 73%, at resale. Replacing vinyl siding cost $9,134 on average, returning $7,963, or 87%, at resale.

A printable PDF of the report includes regional figures.

4. Kitchens and bathrooms rule

It's no secret that buyers tend to be awed by updated kitchens and bathrooms.

"If the last time it was remodeled was in 1980, that's going to be points against, versus another house that was upgraded even five years ago with sort of a modern look," Alfano said. "It's hard to go wrong with a kitchen or bath remodel, unless you get a little too edgy with the design or the materials you use."

That said, sellers spending only a couple of years in a house probably aren't going to completely remodel either room. Sellers should zero in on where these rooms need the most improvement, said Lupberger, of ServiceMagic, and then decide how much they want to spend.

If kitchen cabinets are structurally fine but their exteriors are outdated, it might be worth it to reface them, Lupberger said. If counters are old, replacing them may add new life to the room. In the bathroom, look into resurfacing a chipped or damaged bathtub.

5. Warranty coverage and documentation

Sellers can provide some extra peace of mind to buyers by purchasing a warranty on their home that will cover such things as heating and plumbing, should the buyer run into problems after closing. The coverage is becoming a little more popular, Coldwell Banker's Gillespie said. Warranties can be bought from companies such as American Home Shield and AON.

"Little things like that . . . you need that today, to set the property apart with all the competition out there," Gillespie said.

He also recommends displaying the age of the water heater and furnace. If either one is on the older side, have it inspected for proof that it works correctly.

If you've done replacement projects in the past few years, dig out the documentation to prove it, Alfano said. If any of the improvements cut energy costs, make that known, too.

"You never really could (miss), but it wasn't on the tip of everybody's tongue," Alfano said. "Now, it's in the news all the time."

Another benefit to home-seller financing

By Tom Kelly Inman News

Some homes take longer to sell than others, adding anxiety to sellers who absolutely have to get a transaction closed within a specific period of time. And, when it rains, it pours.

For example, I recently got a call from a former college classmate who had taken a new job in a different state. After his home sat on the market for months, he finally struck a deal with a potential buyer. For weeks the deal appeared to be headed to closing, and the seller, feeling confident with the buyer's borrowing power, had even made a down payment on another home. The seller became upset, however, when the buyer walked away from the deal because the buyer would not agree to a "soft prepay" loan provision offered by a national lender.

A "soft prepayment penalty" or "soft prepay" loan is a requirement some lenders now are demanding to help curtail borrowers from quickly refinancing their loans as soon as interest rates drop. The "soft" limitation allows the borrower to prepay the loan without penalty only if the home is sold. However, if the loan is refinanced during a specific period of time, typically three to five years, the borrower faces a prepayment penalty that could amount to thousands of dollars.

If you have a home that's been sitting on the market and you truly need to sell and move on, you could include in your advertising materials that you would be willing to offer seller financing for a specific period of time provided you receive a sizeable down payment. The down payment would supply you the cash to get into your new home, and the monthly payments made by the buyer could offset the payments of your new home. You also get to better gauge your moving time, and the buyer avoids loan costs.

"Carrying back" all or a portion of the proceeds can make a lot of sense. Most of the time, seller financing works well for both sides, but both sides -- especially the seller -- should be prepared to handle the deal much like a small business. While the buyer can simply mail you a check every month, it's up to you to craft the ground rules.

If you participate in any sort of seller financing, make sure to build in safety features that protect your investment and sanity. In fact, it's not a bad idea to copy many of the loan requirements a local bank would insist upon -- especially if you will be out of the country most of the year.

Here are some seller-financing tips to consider:


Consider a third-party collection account. You can split the cost with the buyer, and the service is well worth the money. It provides you with complete tax statements (seller must submit principal and interest amounts to the buyer-payer annually). The account receives and deposits monthly payments -- especially valuable if you have to go out of town unexpectedly.


Write into the earnest money agreement that the buyer provides and keeps current a homeowner's insurance policy.


Purchase tax registration coverage from a title company. That way, if the property taxes are not paid, you will be notified. Include in the earnest money that the buyer make timely tax payments.


Insist on a "due-on-sale" clause or that you, as the initial seller, must approve any subsequent sale in writing. That way, if the property is sold before the term of your note or contract, you will receive all your cash upon the transfer of the property, or retain the ability to approve the new buyer.


It's a good idea to obtain a credit report on the buyer. Why would you want to sell your home or other property to someone you know nothing about?


If you absolutely cannot be cashed out early (say you need monthly income or do not want to pay taxes on the lump-sum gain) request your own prepayment penalty. That way, if you receive a huge balloon payment when you don't necessarily want it, you will be reimbursed for the inconvenience (tax consequences, loss of reliable income, etc.)


Consider taking a down payment of at least 20 percent. If you need to sell the note before term (illness or other emergency) this will make it easier to sell. Like regular mortgages, lenders require mortgage insurance for loans they write with less than 20 percent down. You will reduce the risk of any future note holder by having an amount at least equal to a conventional down payment.

Seller financing is not for everyone. But not everyone is faced with the deadline of 30 days to be in a new job in a different state.

Go to www.LagretRealEstate.com

25 TIPS for selling your home

Stephen Luckett-Fairfax Realty

Through these 25 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.

1. Understand Why You Are Selling Your Home

Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.

2. Keep the Reason(s) You are Selling to Yourself

The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know.

3. Setting Your Home's Sale Price

This is probably the most important step in selling your home-ineffective pricing could mean your house sits on the market while other comparable homes around you are sold more quickly. Seek professional advice if you are not planning to use a competent Realtor®

If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities. Selling your home yourself opens you up to many litigious situations, so be sure that you fully understand what will be expected of you and the contract process.

4. Do Some "Home Shopping" Yourself

The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.

5. Tax Assessments - What They Really Mean

Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.

6. Deciding Upon a Realtor®

According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor® , consider two or three. Be as wary of quotes that are too low as those that are too high.

All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.

When selling your home be sure that your Realtor® is very aggressive with their marketing campaign.

If you choose to sell on your own, you can still talk to a Realtor®. Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.

7. Ensure You Have Room to Negotiate

Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want to sell quickly.

8. Appearances Do Matter - Make them Count!

Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.

9. Invite the Honest Opinions of Others

The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.

10. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant

Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.

11. Allow Prospective Buyers to Visualize Themselves in Your Home

The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.

12. Deal Killer Odors - Must Go!

You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.

13. Be a Smart Seller - Disclose Everything

Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on. Be sure to use the approved Maryland State & County Forms.

14. It's Better With More Prospects

When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.

15. Keep Emotions in Check During Negotiations

Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation. This is one key area where your Realtor can be most effective, as they will remain emotionally unaffected during the negotiation process.

16. Learn Why Your Buyer is Motivated

The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.

As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.

17. What the Buyer Can Really Pay

As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.

18. When the Buyer Would Like to Close

Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.

19. Never Sign a Deal on Your Next Home Until You Sell Your Current Home

Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.

20. Moving Out Before You Sell Can Put You at a Disadvantage

It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.

21. A Low Offer - Don't Take It Personally

Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.

22. Turn That Low Offer Around

You can counter a low offer or even an offer that's just under your asking price. This lets the buyer know that the first offer isn't seen as being a serious one. Now you'll be negotiating only with buyers with serious offers.

23. Maybe the Buyer's Not Qualified

If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood. Is the buyer a first time buyer? Make sure you know your added responsibilites to the first time home buyer.

24. Ensure the Contract is Complete

To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale. Maryland does have a standard Real Estate contract that should be used if the services of an attorney are not utilized.

25. Resist Deviating From the Contract

For example, if the buyer requests a move-in prior to closing, just say no and that you've been advised against it. Now is not the time to take any chances of the deal falling through. Any deviation on your part from the contract can leave you open to serious litigation that will consume your time and money.

I hope that these 25 points have helped to steer you in the right direction to maximize your profits and reduce your time spent selling your home. If you are thinking of selling in Baltimore County, call me! I live to serve and would enjoy assisting you in the sale of your home.

So you want to refinance?

Where you get your loan makes all the difference
By Robert J. Bruss Inman News

For some unexplained reason, mortgage lenders who service your current mortgage often don't want to refinance it even if you have an excellent on-time payment record. Why don't lenders want to keep their current borrowers? Only twice have I refinanced with the same lender. But it's a smart idea to start with your present lender to see what refinance terms you are offered.

ASK YOUR CURRENT LENDER ABOUT A LOAN MODIFICATION. If all you want to do is reduce the interest rate on your current mortgage, ask your current lender about a loan modification to reduce its interest rate. Personally, I've never had any luck doing this because my loans had been sold in the secondary mortgage market to other "investors," but you might be fortunate to learn your lender still owns your existing mortgage and is willing to modify its interest rate to keep you as a borrower if rates have declined.

With your current lender starting point, then you can compare other lenders you contact. I suggest contacting at least half a dozen lenders by phone. Ask friends, relatives and business associates for lender recommendations. Also, check the newspaper real estate section for current mortgage offerings. See how you are treated as a new customer. If you aren't treated well, that's probably not a good lender for you.

As a refinancing borrower you have the luxury of taking your time for mortgage shopping. I suggest phoning at least two mortgage brokers, two direct lenders and two mortgage bankers. Be sure to speak with a loan officer, not just a clerk who answers the phone.

MORTGAGE BROKERS. These folks are "middlepersons" between the actual lenders and the borrowers. They take your loan application, "package it" by obtaining your credit reports and property appraisal, and then "shop it" to one or more actual lenders. In other words, mortgage brokers get interest rate and term quotes from several actual lenders. Today, mortgage brokers arrange about 60 percent of new and refinanced home loans so they are very important loan sources to mortgage lenders.

Unfortunately, some mortgage brokers have a very bad reputation for making promises to borrowers they can't keep. I've had mortgage brokers lie to me, but without an ounce of guilt or shame. Ask how long the individual mortgage broker has been in business; if it is less than five years, watch out!

Experienced mortgage brokers can perform finance miracles. They usually deal with several dozen lenders on a regular basis and they have access to many more lenders for specialty mortgages, such as for borrowers with unusual financial situations or low FICO scores. My experience with mortgage brokers is they often "overdocument" their loan application files so the lenders don't find anything wrong or missing. This can be extremely annoying to loan applicants.

Watch out for the "yield spread premium" mortgage broker trick. Although mortgage brokers are supposed to disclose any extra compensation they receive from the actual lender, many "forget" to do so until the loan closes and the extra income to the mortgage broker shows up on the closing settlement statement. The "yield spread premium" is a bonus mortgage lenders pay to mortgage brokers for producing above-market-interest-rate loans.

EXAMPLE: Suppose the "going rate" for a fixed-rate home loan is 6 percent but a mortgage broker gets you to pay a 6.25 percent interest rate. In gratitude, the lender will "rebate" several thousand dollars to that mortgage broker for producing a higher-than-required interest rate. It is perfectly legal, but the borrower often doesn't know a lower interest rate could have been obtained either by paying a loan fee (usually called "points") to the mortgage broker or going direct to the actual lender. Be sure to ask the mortgage broker if he will be receiving any kickback or "yield spread premium" from the actual lender.

DIRECT LENDERS. These lenders loan their own funds. Examples include Washington Mutual (the nation's largest home loan direct lender), Bank of America, Chase, Wachovia, etc. Some of these lenders are very flexible because they keep many of their mortgages in their loan portfolios. But they sell most of their mortgages into the secondary mortgage market and keep the loan servicing so the borrower never knows his or her mortgage has been sold.

A big problem with direct lenders is they often don't have much variety in their mortgage offerings. "One size fits all" seems to be their motto. Many of these lenders approve mortgages in huge impersonal centralized loan centers so the person you talk with usually has zero loan-approval authority. However, with today's "automated underwriting," if you meet the initial loan qualifications you will be told within a few minutes if your application is approved, or if it must be sent on for "further evaluation" by a human (called an "underwriter").

MORTGAGE BANKERS. These are hybrid lenders because, while loaning their own (often borrowed) funds, they usually quickly resell those mortgages to a direct lender or into the secondary mortgage market. But mortgage bankers usually keep the loan servicing so the borrower doesn't know their loan has been sold to a distant lender.

The nation's largest mortgage banker is Countrywide, which has both local loan offices and a large Internet Web site at www.countrywide.com. I tried to do business a few years ago with Countrywide when I was refinancing my home loan, but I found their operation to be totally incompetent. Perhaps they have improved since then.

Another huge mortgage banker is Wells Fargo. That's right! You probably thought Wells Fargo was a bank. It is. But Wells Fargo runs its mortgage banking operation out of Des Moines, Iowa. I've found Wells Fargo to be both very bad and, lately, very good.

EXAMPLE: When I refinanced my Wells Fargo home mortgage a little over a year ago, although I live in California, I was referred to loan officer Joe Lobasco in their Las Vegas mortgage office! At first, I was very skeptical. However, he started out the phone conversation by saying, "After we successfully complete this refinancing, you will receive a survey from Wells Fargo. I expect to earn a perfect score so please let me know if at any time I don't deliver the service you expect." Joe took my "no-doc," no-hassle loan refinance application over the phone, delivered the promised 5.75 percent fixed-interest-rate jumbo mortgage with no loan-fee points and no surprise extra costs, arranged the appraisal, and the loan closed within about 30 days. I had nothing to complain about (except the bad title company I selected -- First American Title!). Needless to say, Joe earned his perfect survey score.