Avoid Foreclosure! Follow These 10 Guidelines!

Here’s a fact that may surprise you – lenders hate foreclosures almost as much as you do! After all, they’re losing money and have to follow a complicated legal process to take the property back.

This tells you, if you’re facing the possibility of foreclosure, that it’s in your best interest to work with your lender. So, if you’re having trouble keeping up with your mortgage payment, contact your lender immediately and inform them of the situation.

Also, you can contact a HUD-approved Housing Counseling Agency or call them Toll FREE at: (800) 569-4287 or TTY (800) 877-8339.

Now, if you’re unable to make your mortgage payment, I recommend you follow the guidelines below. They were taken straight from HUD with some additions on my part.

Guideline 1: Definitely Don't Ignore the Situation!
With foreclosure, there’s a natural tendency to hope the whole situation will just go away if we ignore it.

This is not a wise choice because the farther behind on the payments you fall, the more difficult it’ll be to re-instate your loan and the more likely it’ll become that you’ll lose your home. So, take the foreclosure “bull” by the horns and deal with the situation right away.

Guideline 2: Contact Your Lender Immediately!
As I said earlier, lenders hate foreclosure nearly as much as you do. So, most have options to help you through tough financial times. It depends on the lender, but such options may include:

• modifying the mortgage length or interest rate.
• waiving fees or penalties.
• deferring payments through temporary forbearance.
• increasing monthly payments to cover past due amounts.
• modifying an adjustable-rate mortgage to a fixed rate, etc.

Guideline 3: Open and Respond to All Lender Mail Right Away!
Normally, the first notices you receive from a lender will give you one or more of the options listed under Guideline 2.So, definitely open that mail immediately because those options can help you through a rough time.

If you don’t open the mail or toss it out, you’re only making matters worse because they may include notices of pending legal action. And, believe me, foreclosure courts don’t accept any excuses regarding failure to open mail!

Guideline 4: Know Your Mortgage Rights!
Always learn the specifics of your loan documents so you know what your rights and those of the lender are under the terms of the contract if you can’t make the payments. If you don’t understand the contract provisions, talk to a counselor or a real estate attorney.

Also, remember that foreclosure laws and time frames vary by state. This means you need to contact the appropriate state office to learn what’s involved in the foreclosure process.

Guideline 5: Understand Foreclosure Prevention Options!
HUD has free and valuable information on options for preventing foreclosure (also called loss mitigation). These options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL .

Guideline 6: Contact a HUD-approved Housing Counselor!
HUD funds free or very low cost housing counseling nationwide. The counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

Guideline 7: Evaluate Your Spending and Budget. Budget, Budget!
After healthcare, your first priority should be keeping your house. So, that means you need to look at where your spending goes and “cut out the fat.”

By that, I mean zero in on “optional” expenses – cable TV, memberships, daily trips to the coffee shop, eating out, etc. If you’re not careful, these expenses can tear the heart of your budget, and they’re easily avoided! All the money saved by foregoing these items can go to making your mortgage payment.

Also, delay payments on credit cards and other "unsecured" debt until you’ve have paid the mortgage.

Guideline 8: Employ Your Assets!
You may well have assets that you can sell for cash and apply to your mortgage payments. These could include items like a second car, jewelry, a whole life insurance policy, etc. Also, if anyone in your household can get an extra job, it’ll bring in additional income.

Even if that income isn’t great, the effort demonstrates to the lender that you’re willing to make sacrifices to keep your home.

Guideline 9: Avoid Foreclosure Prevention Companies!
I repeat – avoid these companies! Some are legitimate; some are scam artists. In either case, you don’t need to pay them hefty fees for foreclosure prevention!Sometimes those fees can amount to two-to-three months’ worth of mortgage payments! Why do this when, for free, you can work with a counselor or with the lender?

Guideline 10: Don't Lose Your Home to Foreclosure Recovery Scams!
You may be contacted by firms claiming that they can stop your foreclosure right away if you sign a document appointing them to act on your behalf. If that’s the case, tell them to get lost! This is a scam where you end up signing over the title to your property and becoming a renter in your own home!

NEVER, ever sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD-approved housing counselor!

Want to talk more about options for preventing foreclosure? Contact me right now at 402.598.3965 or email me at: peg@pegmaloney.com, and I can provide you with that information!

How to Be a Wise House-Shopper in a Great Buyer’s Market!

There’s no doubt about it – there are a great many bargains in the real estate market today if you’re a person looking for a new home. However, I highly recommend that you don’t get dazzled by all the opportunities and make a potentially expensive and poor decision. To that end, I’d like to offer you some common-sense guidelines to follow.

Guideline 1: Pay Attention to Your Budget
Before beginning your search for that new home, sit down and come up with a monthly payment you can handle with ease and then look for the house that fits that budget.

Guideline 2: Save Up for a Down Payment
Due to the “mortgage meltdown,” lenders are currently much more cautious about giving out money. Depending on the situation, they may insist on a minimum down payment of 10% or one that’s all the way up to 25%. So, start saving!

Guideline 3: Improve Your Credit Score
A good credit score is a great way to make the whole process easier when you apply for a loan. Today’s lenders scrutinize such scores more closely today than in the past. If you don’t have a good score, work hard to get it up into an acceptable range. It’ll save you money on interest charges and down payments in the long run!

Guideline 4: Get a Pre-Approved Mortgage Loan
If you’re a first-time home buyer or simply a buyer who wants to make sure you stay within your means, it’s a wise idea to get a pre-approved mortgage.This is simply the process of applying for a mortgage and getting approval for the loan prior to buying a home.

A “pre-approval” is an indication that the lender is ready to extend a mortgage to you once you’ve located the right property.  And it has several benefits. First of all, it saves time and energy. Once you have a pre-approved loan amount, you’re required to stay within the limits of that loan in terms of the price you’ll pay for a house.

First, when working with a realtor, ask him or her to limit the choices to those stated in the loan. This prevents the agent from showing you properties which are out of your range. By the way, they’ll really appreciate those parameters because it’ll help them zero in on properties with the best chance of sale! 

Second, you can spend more time looking at homes you really like and, simultaneously, not wasting time on houses that aren’t within your budget. This allows you to focus on the details of the homes you do like in order to make sure you select the right one; for example, kitchens, baths, garages, etc.

Third, you can bargain more effectively with sellers once they know you’re pre-approved. In the current market, that’s a great relief for many sellers because they realize they have a reasonable certainty of selling their property when working with a pre-approved buyer.

Fourth, you can close faster with a pre-approved loan because there’s no time lost in the usual processing period for loans. For example, an appraisal can be ordered right away, and you have the potential to cut a 30-day closing to two or three weeks.

Finally, the seller will prefer to deal with you, particularly if he or she needs to move quickly.

Now, you have some common-sense guidelines to follow when seeking a new home in today’s market! You can learn even more by contacting me today at 402.598.3965

4 Important Questions to Ask When When Getting a Mortgage

A special thanks to Stacy Thorne of West Star Mortgage for her interview!

You know, home buyers often have several questions about fees involved in the whole mortgage process. I know mortgages and their associated fees can seem overwhelming and confusing at first, so I thought I’d ask Stacy Thorne of West Star Mortgage to break down those fees - so you can make best-informed decision possible when it comes time for you to shop for a loan.

So, here is a breakdown of the questions I asked and the answers Stacy provided!

Question 1. In Nebraska, a Home Loan Is Called a “Deed of Trust” While In Other States It’s Called a Mortgage. What’s the Difference? 

Answer: Actually, they’re very much the same thing. It’s just that the administrative processes are different. The more common term, of course, is “mortgage.”

Question 2: What Are Standard Mortgage Fees?

Answer : You can break them down into three areas:

• Lender fees – these are administrative fees for processing the loan.
• Third party fees – these are standard fees charged by, for example, a title company, which searches the title to make sure there aren’t any unexpected liens or other things of that nature. Other third party fees can include: appraisals, credit reports, closing fee, etc.
• Any local or state government fees (varies by state)

Question 3: Are Fees Negotiable?

Answer : For the most part, no. They’re pretty standard. However, lenders will be more flexible on the mortgage loan’s interest rate because they want to remain competitive with other lenders.
So, be sure to compare rates among lenders to get the best deal! It can save you a tremendous amount of money over the life of the loan!

Question 4: What’s the Difference between a Mortgage Banker and a Mortgage Broker?

Answer : A mortgage banker lends you their money.Think of mortgage brokers as “go-betweens.” That is, their job is to find you the best mortgage for your needs. So, they shop for that mortgage among banks or lenders and charge a fee for that service.As you can see, this is more expensive than working directly with a banker but a broker can be a good choice in the right circumstances.

I hope you found this information valuable, because I have much more to share with you ! Naturally, I couldn’t include everything in this short message, so why don’t you give me a call today at 402-598-3965 or contact me at peg@maloney.com , so I can provide you with all the information you need to make the right decision!

I look forward to speaking with you soon!

Use These Steps to Raise Your Credit Score and Get a LOWER Interest Rate on Your Mortgage.

Pay Off  YOUR Debt,  NOW!

The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate  credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!


What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)
  
Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

 I’d be happy to discuss some more in-depth  budgeting tips and provide you with information on mortgages at the same time! Go to (insert link) right now so we can get together and have an interest friendly financial chat!

You're Invited to Tour My Omaha, NE Re/MAX Office & Meet My Exceptional Staff!

It's time for a special break from my real estate education articles - let's take you on a tour of my office! We're located on 98th and Giles in Omaha, NE, so when we're working together on your next home, you'll meet my exceptional team that will help you get the deal done!

Sue and Missy are my assistants that take care of your listings and closing contract, while I focus on negotiating with the seller to get you the absolute best deal. Karen and Rhonda are my buyers specialists who will find your perfect home here in Omaha and walk you through all the steps so you make a decision that's right for you.

So, if you know anyone who is looking to make a decision in real estate within the next six months, send them over to my team - we'll take excellent care of them!

Why You Should Hire "Sherlock Holmes" To Increase The Value of Your Home

No, you don't need the fictional detective inspector. However, you do need a home inspector!

Think of this as a "pre-emptive strike" to maintain or increase your home's value before you put it on the market. Here are the benefits an inspector provides you:

Benefit 1: The inspector can uncover any problems that need fixing, and you can correct them before any potential buyers enter your home. Such an inspection can prevent your sale from falling through!

Benefit 2: With an inspection, you can show prospective buyers receipts to prove the work has been done. Buyers love proof! In reality and in their eyes, it underpins the value of your home and the asking price.

Benefit 3: You may be able to factor the cost of the inspection into the asking price for your home!

Benefit 4: When you have a presale home inspection completed, you're able to estimate if the discount the prospective buyer is asking is reasonable. In other words, you can refuse unreasonably low offers if you know the value of your house, including the degree of its defects.

So, How Do I Find a Qualified Home Inspector?


I can recommend a certified home inspector who will do a great job for you. However, if you decide you want to do it on your own, make sure he or she is qualified!

Con artists sometimes pose as home inspectors, taking your money and giving you nothing but grief in return. Here's how to know if an inspector is the real deal:

    * Ask your friends for referrals. If they've had a good experience, go with that home inspector.

    * I’d recommend you interview a minimum of two or three inspectors before choosing one. Make sure they’re full-time professionals conducting several inspections a year.

    * If possible, select a home inspector who’s a member of The American Society of Home Inspectors (http://www.ashi.org/) or the National Association of Home Inspectors http://www.nahi.org/. These association members follow a stated code of ethics. In addition, they’re prohibited from having a professional interest in the sale, repair or maintenance of a property they inspect. They’re also forbidden from using their inspection business as a way to find customers for a handyman service that they “happen” to own. You may want to go on the Internet and use ASHI’s “Find a Home Inspector” link to identify potential candidates in our locality. 

    * As part of the interview process ask for samples of comprehensive reports (about 20-50 pages in length). The samples should be painstakingly done and backed up with complete details, including photos and diagrams. If an "inspector" refuses to give you a report or provides only a sloppily written 2-to-5 page sample, run the other way!

What Does a Home Inspector Cost?

Frankly, the rates vary. On a national level, the rates fall in the range of $200 to $400.

As part of the interview process, I recommend you ask several inspectors for their rates so you can get an idea of the price range.

In the end, keep in mind that while the cost of an inspection may seem high, it can actually add several thousand dollars to the value of your home! So, don't think of it as a cost; think of it as an investment!

What Exactly Does a Home Inspector Evaluate?

In general, he or she will look at the following areas:

Energy Conservation/Safety Items
Electrical System Wiring, Service Panel, Devices, and Service Capacity
Exterior Walls, Siding, Trim
Floor, Wall, Ceiling, Roof Structures
Foundation, Footings, Crawl Space, Basements, Sub-flooring, Decks
Gutters, Downspouts
Heating & Cooling Systems
Insulation & Ventilation
Interior Floors, Walls, Ceilings
Moisture Intrusion/Mold
Overall Structural Integrity
Plumbing Systems, (fixtures, supply lines, drains, water heating devices, etc.)
Property Drainage/Landscaping
Roof, Roof Shingles, Chimneys, Attic
Walks and Drives
Windows, Doors, Cabinets, Counters, etc.

Should I Be Present During a Home Inspection?

You bet! A typical inspection takes three hours or more, so I recommend that you be present for at least the first 30 minutes to make sure the job is being done thoroughly.

At the end of the inspection, the home inspector should give you a point-by-point summary of what needs to be corrected in order to add value to your home!

Hope you enjoyed this information! If you have more questions, contact me at 402.598.3965 or email peg@maloney.com!

What Determines the Value of Your Home?

What Determines the Value of Your Home?

Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area.

So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range.

But market value is also determined by a number of factors including the following:

External Factors

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors

The condition of a home's interior also has a huge influence on prospective buyers.

When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them.

Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc.

Supply and Demand

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers.

When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell

Location 

More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location."

While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc.

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood? Aren't Allowances Made for This?

Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties

Where Do I Find Sales Comparison Information?

The easiest source to access is your realtor. After all, it's his or business to know such information

But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. The Local Assessor's Office

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll.

Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service.

2. Online Private Companies

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee.

If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information

3. Your Local Newspaper

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections

The Key to Getting the Price You Want (or Close To It) for Your Home

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the realtor!

He or she should work hard to qualify those buyers upfront so the right people are viewing your property!

In other words, the realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you.

See how I do that for you by sending me an email to peg@maloney.com