2008 BRAC Update For Huntsville, Alabama

By the time the relocations set forth during the Base Realignment and Closures (BRAC) of 2005 are complete in the year 2011, approximately 4,700 new people will have moved to Huntsville, Alabama due to job transfers. Many of these people and positions will come from the northern Virginia area. Some of them will come from Georgia. Alabama will also see its first four-star command thanks to BRAC.

As for 2008, the Tennessee Valley BRAC Commission states that the 2nd Recruiting Brigade facility should be completed in time to house the 2nd Recruiting Brigade that will relocate this year. That will put roughly 700 transfers at the U. S. Army Redstone Arsenal in Huntsville Alabama this year. Along with these changes, numerous support positions may also be created. What can everyone expect as they begin the process of moving to Alabama? And what does Huntsville have to offer that workers didn´t have before?

Huntsville Real Estate
The 2007 Coldwell Banker® Home Price Comparison named Huntsville real estate the most affordable residential real estate market in Alabama. When looking at a 2,200 square-foot house with four bedrooms and two and a half baths, the average cost for Huntsville was $212,183. A similar house in Atlanta, Georgia showed a price of $324,000. Find that same house in Alexandria, Virginia and the price skyrockets to $771,500. In other words, if BRAC has you relocating to Huntsville, real estate prices will be an enormous benefit when transferring from Georgia or Virginia.

Cost of LivingA cost of living comparison from CNNMoney.com shows that an annual income of $120,000 in Washington DC is equivalent to approximately $78,000 a year in Huntsville. To state it another way, relocation from the DC/northern Virginia area to Huntsville is almost like getting a 50% pay increase. The comparison states that in Huntsville groceries were 14% less, utilities were 29% less, transportation was 7% less and healthcare was 18% less than in Washington. While not as large a difference, a $120,000 annual salary in Atlanta would equate to $113,000 in Huntsville. Groceries were 3.9% less, utilities 4.1% less, transportation 3.6% less and healthcare 12.4% less in Huntsville than in Atlanta.

Taxes
Alabama has some of the lowest income tax rates in the nation. You´ll also find very low property tax rates in this area. A home valued at $100,000 in Huntsville would have a property tax bill of less than $600. Not true in Georgia or Virginia. Another item to consider is that retired military and civil service income is exempt from personal income tax in Alabama, making this state an ideal place for those planning to retire from military vocations soon.EntertainmentNot only is Huntsville an economical place to live, it´s also an entertaining one. Golf and boating are popular sports thanks to an average temperature in the upper 80s during summer and low 30s during winter. Outdoor activities are an option most of the year.

The Huntsville Symphony Orchestra has provided magnificent concerts and award-winning educational programs for over 50 years. At the newly opened Bridge Street Town Center you´ll find upscale shops as well as familiar favorites. Gondola rides, paddleboats, fine dining, and movies make this a place you have to see to believe. You can´t talk about Huntsville, however, without mentioning the U. S. Space and Rocket Center. See actual moon rocks, the Apollo 16 command module and more. Adults and children alike will enjoy the center as well as the space camps it offers.If you're headed to Huntsville due to BRAC relocations, you won´t be disappointed.

With its low cost of living and great resources, Huntsville is an awesome place to call home.Mike Manosky has over 16-years experience serving the needs of those who wish to buy Huntsville real estate. If you're thinking of moving to Huntsville, real estate listings that match your criteria can be sent to you immediately. Contact Mike today to get started. http://www.movetohuntsville.com/. © 2008, All Rights Reserved

Huntsville homes for sale
Huntsville house for sale

Tuscaloosa Co. led state in real estate salesSales down, inventories up overall statewide

With minor fallout from the national subprime mortgage meltdown and growing fears of recession, 2007 may not have been a banner year for Alabama real estate markets, but it came close.Tuscaloosa County led the state’s major real estate markets in sales growth for 2007, while the year also marked the third strongest on record for Alabama home sales, according to information released Thursday by the Alabama Center for Real Estate.

Tuscaloosa County boasted a 12.69 percent increase in sales over 2006. Muscle Shoals took the mid-size market sales crown with 4.62 percent growth, while Walker County represented the only rural area to grow in 2007, with a 21.69 percent increase in sales. Todd Vick, president of the Homebuilders Association of Tuscaloosa, attributed Tuscaloosa’s success in part to the presence of institutions such as the University of Alabama and DCH Medical Center, which tend to have a moderating influence on sharp swings in the economy.“Relative to some other areas, Tuscaloosa has maintained a pretty stable growth pattern,” Vick said. “I don’t think it was hit nearly as hard as some of the other metropolitan areas around the country.”

Alabama ended the year with 57,083 units sold, a modest year-over-year decline of five percent compared to the high double-digit decline experienced by its regional and national counterparts. The state housing market, however, is not without its challenges. The recent downward trend in monthly home sales continued in December, dropping 1.96 percent from November and 17.59 percent compared to December 2006.Grayson Glaze, director of the UA-based real estate center said such numbers must be viewed in the context of Alabama’s recent spate of recording breaking sales years.“One must recognize that preceding December home sales represented the second best on record at 4,492 units for the month,” he said.

Despite December being the third consecutive month with fewer homes on the market, the state housing inventory remains bloated at 41,604 units. At the current sales pace, Glaze said it would take 11 months to work through that inventory. “This is considered unhealthy and significantly higher than traditional and desired industry levels of approximately six months,” Glaze said.An overabundance of homes has proven to be one of the most significant drags on the Alabama housing market in the past year, driving down home prices and boosting the average time homes spend on the market.

A crisis in consumer confidence caused by the subprime meltdown, rising fuel and food prices and other economic woes has made absorbing the excess housing difficult. Barring a recession, the center projects that inventory will return to more desirable levels in the second half of 2008. Glaze said a return to normal levels will indicate the market’s readiness to move beyond the current correction. The center predicts that home sales will return to a more sustainable pace in 2008 compared to recent years where record sales were the norm. Sales for 2008 are projected to fall below 2007 levels. Reach Matt Hawk at matt.hawk@tuscaloosanews.com or 205-722-0213.

Alabama real estate web design and marketing

Check out our new blog created to help Alabama real estate agents to better understand the online marketing process. Real estate web designers can learn a bunch out of our blog
http://alabamasrealestate.blogspot.com/

Making the bestof downtown life

Huntsville Times
The campaign to bring more life to downtown Huntsville is more like a football season than a single game. There's a new challenge each week, it seems, and it's hard to win them all, even when you're a team.

Two recent meetings of downtown business owners and city officials showed just how tricky it can be. Consider:
That downtown is far from dead now. Almost the entire central core north of Huntsville Hospital and south of I-565 is occupied. There are many fine restaurants and bars already, including 801 Franklin, Ruth's Cris Steakhouse, the Furniture Factory, Partners, Kaffeeklatsch, Crossroads, Masons, Humphrey's, the Chophouse, Sammy T's, the Bistro du Soleil, Papou's, the Voodoo Lounge and the Jazz Factory.

That despite those, and the ones I've probably left out, most downtown buildings still hold offices that close at 5 p.m. Worse, for this discussion, is that most of those are storefront attorneys' offices and the like, meaning there is rarely new street-level space for shops or hangouts.
That almost no one lives downtown to support what is there, although people do live nearby in the historic districts.
That no people means nightlife thrives on the weekends and starves during the week. People from all over head downtown on weekends but, during the week, stop at restaurants and bars closer to Home Sweet Suburb.

How do we keep downtown busy all week so it thrives and grows? How do we get the entertainment, shopping and living zone we all seem to want?
If you have an idea, downtown merchants would love to hear it. Seriously. They've taken the first big step and overcome their natural competitiveness. They know that they really are in this together.
My big idea - you knew I couldn't resist plopping one on the table - was to offer dinner and drink specials at rotating bars and restaurants on a certain night each month. Call it "Do Downtown Tonight" or something like that. Give me a coupon and a bargain. Make it worth my while to drive back in from 'Burb World.

Well, it could happen. At least they didn't laugh out loud.
Another good idea - not mine - is to focus on the business travelers who fill Huntsville's hotels during the week. These people are a captive audience, so to speak, and they have to eat somewhere. They want to unwind after work. Why not downtown?
Why not? They don't know what's there. That's why the city is working with downtown destinations to offer free tours and treats to the city's "front line" hotel workers.
Downtown businesses also asked the city last week to tweak the free trolley schedule. Right now, the two city trolleys run a downtown loop on Friday and Saturday nights. They are usually nearly empty.

That makes sense, too, when you think about how we really live here. We drive downtown on the weekend, hit our favorite spot for entertainment, food or drink and maybe walk to a nearby spot for dessert or a nightcap. We don't do a lot of pub crawling here.
Run the trolleys earlier in the week, the businesses said, and run them past more hotels, including hotels on University Drive.

Might work, city leaders said. We'll look into it.
This is how our downtown will be changed. It won't be one big zoning decision or similar bold stroke. It will be dozens of individual decisions to open businesses, work together, work with the city and keep trying.
"None of this is written in stone," a city transportation official told me. "Try something. If it doesn't work, try something else."

Smart man. And a good friend for downtown to have.
Reach Lee Roop at 532-4423, lee.roop@htimes.com or text at 509-9644. Visit Roop's room blog at al.com.

Huntsville Historic Home

Historic Lowry House
Huntsville has hundreds of beautiful, Historic homes in several historic neighborhoods. The Historic Lowry House at 1205 Kildare Street in Huntsville was placed on the National Register of Historic Places in 2001. In June 2006 it was restored and reopened for weddings, receptions and meetings. If you're looking for a unique place for your wedding, then you might want to take a look at this beautiful home.

If you are interested in additional Huntsville homes for sale or for other purposes visit - http://www.clyentmyrie.com/

Huntsville Homes for Sale - Testimonials

Are you in the market for a Huntsville home for sale. Looking for that incredible real estate deal. Then you need a professional realtor to handle your needs. Here is what some of Clyent Myrie clients had to say about his real estate service

Brenda & Leon L.
"Clyent sold our home fast! He took high quality digital pictures and a fabulous virtual tour to attract a buyer in about three days. Clyent saved us thousands by selling our home quickly. He even helped us move! Thanks Clyent."

Peter R.
"As a new transplant to the area with only a couple of weeks to find our home, my family was really concerned about finding a REALTOR who knew the area. Clyent knows Madison and the surrounding areas well. He guided us to the home of our dreams and understood our needs. We would highly reccommend him as a professional and competent REALTOR!."

Allison B.
"Clyent provided an excellent service to my family. We literally left our home in his hands when we moved away to another state. He coordinated everthing from the lawn service to the pool service and then settlement. Everything happened as planned and we could not be happier!"

visit http://www.clyentmyrie.com/

Real estate directory

Have a real estate related website? Looking to expand your reach and increase your traffic. Check out the real estate directory - http://www.realout.com/ - "the best real estate agents link with. us" add your real estate website without the obligation of linking back. Go ahead maximize your home for sale potential

Real estate Huntsville

As owner of HUNTSVILLEPR, a webdesign and online marketing company, i had the pleasure of building Clyent's website Huntsville House. This week i finished working on Ilyasha Anderson Real estate Huntsville website. It is a basic yet beautiful website that provides link exchange to realtors, home builders etc. It provides info not only on Huntsville homes for sale but also on foreclosures. If you are looking for a professional real estate agent contact Ilyasha

Real estate blog links

To all real estate webmaster here is a great resource for real estate blogs
Real Estate Blogs
A directory of real estate blogs and blog sites of industries affiliated with and serving the real estate industry

Rainbow City Real Estate Realtybid.com

Rainbow City-based RealtyBid.com, an online real estate auction company, said it saw sharp increases in the number of online listings and sales during the third quarter. "Our third quarter saw the largest number of homes that have ever been offered for auction on our Web site - well more than 4,000," said Chief Executive Tony Isbell. "That number is a more than 136 percent increase over the third quarter of 2006." Meanwhile, the number of homes sold through the company's online auction system increased 145 percent during the period.

Minorities get more 'high cost' loans

A disproportionately large percentage of mortgages made to blacks and Hispanics last year met the government's definition of "high cost" loans, a new study said.
The report, released Thursday at an industry conference in Arlington Va., analyzed nationwide mortgage data for 2006 and reached conclusions similar to those of another study published by the Federal Reserve last month.
Advocacy groups say mortgage discrimination has contributed to the current crisis in lending to borrowers with weak, or subprime, credit, in which a growing number of families are losing their homes.
The study, sponsored by Richmond, Va.-based mortgage insurer Genworth Financial, concluded that 48 percent of home loans given to blacks and nearly 42 percent of loans given to Hispanics last year met the government's definition of "high-cost "loans. That compares with 18 percent for whites and more than 24 percent for the overall population.
The analysis, which excludes refinances and second mortgages, uses the Federal Reserve's definition of high-cost loans: mortgages whose rates are at least 3 percentage points above comparable Treasury securities, a category that includes most subprime loans given to people with weak credit records.
Subprime lending among blacks nearly doubled from 2004 to 2005, and it more than doubled among Hispanics, according to data from the study.
"Some of those consumers could have been in prime loans with lower interest rates if they had been given the proper education about their options," said Lori Jones Gibbs, vice president for affordable housing industry affairs at Genworth.
Consumer advocates say low-income borrowers and minorities are intentionally steered by unscrupulous lenders toward subprime loans. But Jones Gibbs instead stressed that consumer education is crucial for borrowers.
Total lending dropped nearly 12 percent in 2006 from a year earlier as the housing boom ended, the study found. Even as that happened, the number of home loans to blacks actually grew by 0.6 percent, while loans to Hispanics fell by more than 5 percent.
The Mortgage Bankers Association couldn't be reached for comment on the study, but mortgage lenders generally say they examining borrowers' debt levels and the amount of money they can provide as a down payment, rather than race.
Source: Huntsville Alabama Real Estate

Firms join to help fix homes

Wednesday, September 05, 2007
By JOHN PECKTimes Staff Writer john.peck@htimes.com
Professionals to aid volunteers in city's repair plan
A volunteer-based emergency home repair program in Huntsville is getting some expert help from the construction industry, a move that should boost the number of homes getting repairs.
Turner Universal, along with M&D Mechanical in Decatur, agreed to join hands with Huntsville's Community Development Department by providing skilled laborers at company expense.

Mayor Loretta Spencer visited a northwest Huntsville home-repair job Tuesday to thank Turner workers and commend program organizers for their outreach. Workers were installing siding on a house owned by an elderly person on Del Norte Street.
The emergency home repair program in Huntsville began in 2004. Community Development partners with local churches and volunteer groups and uses grants and other resources to obtain building supplies. The program is for low income, elderly and disabled homeowners aimed at removing health and safety hazards.
"I have had the opportunity to see first hand many of the repair projects and visit with the homeowners and volunteers," Spencer said. "We are very fortunate to have so many people in our community who are willing to invest their time and hard work to benefit others."
The emergency home repair program has completed 108 exterior home repair jobs this year using 900 volunteers.
Rosa Wade and Rodney McCallie with the city's Community Development Department said having skilled help will help tackle larger jobs and those requiring specialized skills such as steep roofs and handicapped features that must meet federal standards. The program has a target of 200 homes this year.
Lorraine Lee, president of Associated Builders and Contractors Inc., of which Turner and M&G are members, said more contractors may furnish laborers as word of the partnership spreads.
"Not only are we able to help individual homeowners by bringing the structure from substandard to habitable condition, we're also able to give back to the community," she said.

So which grill wins the debate? Let’s look at the arguments for both. The case for gas or charcoal seems to be divided along three main points:

So which grill wins the debate? Let’s look at the arguments for both. The case for gas or charcoal seems to be divided along three main points:

Convenience Cost Taste The convenience argumentThe clear winner in this category is the gas grill. Most models feature push-button ignitions, a consistent, steady heat source that’s ready to go within minutes, excellent temperature control, and easy cleanup.

But convenience isn’t necessarily a deciding factor for all grill shoppers. Charcoal enthusiasts say it’s the ritual—piling up the charcoal, lighting it, tending the fire, and manually adjusting cooking temperatures by moving food from hotter spots to cooler ones—that makes outdoor cooking worth the effort. They feel that trading the process of the backyard barbeque for the push-button convenience of a gas grill is missing the point.

The cost argumentIf cost is the most important deciding factor for you, you’ll likely want to look at charcoal grills. They cost considerably less than gas, with basic models ranging from about $30 to $100. If you add features like additional burners and side tables, you can count on something like a $300 to $400 range.

Most gas grills—excluding portable and table-top models—are on the expensive side, ranging anywhere from $300 to $1500, and more for higher end models such as built-ins and smoker/grill combinations.

The taste argumentThough some barbeque fans swear they can’t tell the difference between food cooked on gas grills and food cooked on charcoal, the charcoal purists insist otherwise. According to them, the flavor that is infused from the smoke of charcoal briquettes or wood coals is what distinguishes an outdoor feast from a standard kitchen meal.

In an effort to address the taste issue, some gas grill manufacturers have built models that add ceramic flavor bars. These bars catch grease drippings and vaporize them into smoke that infuses more flavor into what’s being cooked. A popular brand that uses this flavor bar feature is the Weber® Genesis® series.

So who’s the winner in this category? The jury is still out on this argument, and it probably always will be. Taste is such an individual decision; you may just have to try both grills and see for yourself.

For those who still can’t decide...As you can see, there are pros and cons to owning a gas grill, just as there are advantages and disadvantages to owning a charcoal model.
Still aren’t sure which one is right for you? Do what many families have done in recent years—buy both! If you truly enjoy outdoor cooking, it makes sense to own two models that you use for different purposes. For example, you can use the gas grill for cooking quick barbeque meals during the week, and break out the charcoal grill for when you want to take your time on the weekend.

There are a couple of options available to you if you want to own both a gas and a charcoal grill. There’s the obvious one: buy both grills. But if your budget is tight, or you’re limited on patio space, check out the combination gas/charcoal models such as the Char-Broil® Quickset® series. These grills convert from gas to charcoal and back again with just a little preparation and effort.

So what will it be—gas, charcoal, or both? In the end, the decision comes down to your lifestyle and what features work best for you and your family.

About the Author

Vanessa Kirkland is successful freelance writer and outdoor cooking enthusiast whose articles offer valuable tips and advice for online purchasers of gas grills, charcoal grills, and barbeque accessories.

To keep up with the Joneses, you'll need to spend some money...

You have an elegant gunite swimming pool, mottled granite countertops and a steam shower in your master bath. But in the race for the ultimate home, you're still behind.
Home trends move fast, especially at the very high end of the market, where new ideas take hold. Whirlpool baths, once a rarity, can be found in many a decent new subdivision. Ditto for double-height living rooms. Stainless-steel appliances are practically standard.
--------------------------
It's time for the newest wave of desirables.
Among the current must-haves for very luxurious homes: serene bathrooms with souped-up saunas, towel warmers and heated floors (to bring the spa back home); green elements such as eco-friendly woods and nontoxic building materials; and technology that integrates the controls for lighting, heating, security and other systems.
"The move to make the home more spalike is definitely going strong," says Suzan Globus, a Red Bank, N.J., interior designer and the president-elect of the American Society of Interior Designers. "One of the other trends is creating a seamless integration of technology into the home, making what we call smart homes. We are also seeing an interest in creating sustainable environments."
Low interest rates and a booming housing market have encouraged people in recent years to take out home-equity loans to spruce up their spaces, says Kermit Baker, the director of Harvard University's Housing Studies Center, with the most growth in upper-end kitchen and bath remodels. Though housing prices may be slumping, Americans are still investing in their properties -- an estimated $160 billion over the past four quarters, according to the Joint Center for Housing Studies at Harvard.

Don't Hand Your House Keys To A Thief!

Meet Carol and AnthonyCarol and Anthony Calvagno of Deer Park, N.Y., on Long Island are in a hell like this right now. In 2003, the Calvagnos were in trouble. Anthony Calvagno had health troubles and had lost his job. In order to pay their bills, the couple took out a home equity loan on the Cape Cod-style house that had been in the family for three generations. (At the time, the couple had a $125,000 mortgage on a house worth about $290,000 -- a high-equity target.) But even the home equity loan wasn't enough.

That's when Mitchell Sims swooped in, offering to help, says the couple's attorney, Arshad Majid.

Sims told the couple that he would arrange a bailout, and that they should stop making mortgage payments while he worked out the details. When foreclosure notices started showing up, he told the couple to ignore them, saying he'd take care of it.

Nearly eight weeks after Sims had entered their lives, and the day before their foreclosure was scheduled, Sims told the Calvagnos that the arrangement hadn't worked. Instead, he said they'd have to file for bankruptcy and enter a "special program" in which they'd sign over their house's title to one of Sims' employees and another of his business associates, who also happened to be Sims' brother. They'd be allowed to live in their home as tenants, Sims told them, and their rent payments would go toward buying their home back from him, says Majid. "They were put in the position where they didn't have any choice" but to sell their deed, Majid says.

But Sims never made any mortgage payments. He kept the Calvagnos' rent money and about $50,000 of the couple's money that remained after their creditors were paid.

The Calvagnos had fallen victim to a scam known as equity stripping -- just one of the many flavors of mortgage fraud. Their house was sold. Sims and another person have been put in prison for their crimes. The couple has successfully fought eviction -- so far -- but not everyone is so lucky. Here's a quick look at three of the main ways scammers can steal the roof over your head.

Solve Common Landscape Problems

Think about how many people you'll be having over for dinner on a somewhat regular basis. Plan at least 4 sq. ft. for each of those people. Leave 3' of breathing space around each piece of furniture on the patio to that people can easily move about without bumping into things. 3 Avoid hardscape materials that may become slippery when wet. Make sure these materials provide secure footing under all conditions. Hard surfaces should be slightly sloped to keep water from pooling. 4 If your ideal design has any overhead structures, roofs, etc, make sure they are at least 7' above the ground. If things will be growing underneath, add an additional 5" — 18".

It's better safe than sorry, and in time as the landscape matures, plants will begin to fill in and you'll be glad you added that extra height. 5 When planning which plants go where, remember that they will grow. Most gardeners plant with an eye for what looks good now when setting out plants, forgetting how large the plant will be in 5 years. It's better to plant permanent plants where they can be comfortable and then fill in that grow space with filler type plants that will be short lived or can be easily moved later. 6 Keep tall plants well away from walkways and patio edges. Especially avoid prickly plants from these same areas. More tips to follow next month!

Beware of Predatory Lending!

Predatory lending is a term often associated with short-term consumer financing options such as payday loans, but it's prevalent in the home loan realm as well. In fact, mortgage fraud is rampant these days. At best, these practices are annoying to potential victims, but for the actual victims, the end result could be far worse: the loss of a home, financial catastrophe, the destruction of hard-earned credit scores.With that in mind, it's vitally important to choose the right lender and remain fiscally secure.

We've taken a look at some common predatory lending practices to alert prospective borrowers to the warning signs before they're victimized. It's vital that you know how to protect yourself, and know where to go if it's already too late for that.Current homeowners seeking refinance options are at greater risk of fraud than regular home loan seekers, but no one is immune by any means. At particular risk of mortgage scams are any buyers who, due to credit issues or self-employment status, must rely on subprime lending.Also at risk are those seeking to buy in neighborhoods that have been red-lined (read: greatly discriminated against) by conventional lenders.

Almost by default, a buyer in this kind of area, which is likely low-income and in need of some serious housing overhaul, is placed at the mercy of subprime lending providers.But it goes beyond that.There are many people involved in fraudulent, predatory practices, ranging from large and well-known banks, loan servicing companies, small-time con men who once hocked aluminum siding and water filtration systems door-to-door, corrupt loan originators working for otherwise legitimate firms, jaded real estate attorneys, builders, agents, and more.THE

BOTTOM LINE: Predatory lending is profitable, and more opportunists are always coming out of the woodwork. Here's a short list of predatory practices.

The Classic Bait & Switch. This commonly-used term comes from numerous retailing industries, where a great sale on a plasma TV or new car gets buyers to come down to a store, only to find out that the item is sold out or the sale no longer applies. However, the retailer has something “almost as good” that he'll give you a good deal on to make up it. The practice is common in the mortgage field as well. A borrower commits under a set of terms -- a certain interest rate, a fixed - or adjustable-rate mortgage with a specified time frame and adjustment index, loan duration, etc. Then, at closing, the borrower realizes the documents specify a higher rate, a different adjustment, a five-year note with a balloon, or other terms to which he had not agreed. The loan originator does not answer his phone. The sellers are beginning to look real unhappy. Under pressure and distraught, the borrower signs the documents and swears he will get the mess straightened out. But with the papers signed, it is now a legal issue that takes time, money and perhaps courts to resolve. If you think this could never happen to you, a California study of 125 people who used subprime lenders reported that 70 percent of borrowers said that at least one key of their loans changed negatively at closing.

Lending More Than a Borrower Can Afford. It happens more often than you might think -- a lot more often. You’ve seen the ads in your email box or on late night TV for sure.

· Borrow 125 percent of your home’s value!
· Use your house to buy a new [insert car, yacht, home entertainment system, dream vacation or other indulgent purchase here].

While these can be classified under aggressive solicitation, they are also part of a more devastating practice. Purposely granting and/or structuring a loan with monthly payments in excess of what a client can reasonably be expected to pay is probably as bad as it gets. An over-the-top loan-to-value ratio is all but guaranteed to get you in trouble, but there are other things to watch out for on top of that.

Disregarding Income and Debt, for one. Bad lenders ignore the conventional guidelines regarding the borrower’s ratio of debt to income, or the level of income itself. If a borrower is lined up to pay 55 percent of his income to PITI, for instance, default is all but guaranteed. Negative amortization is now illegal in many states, and should be in all of them, but lenders can usually get away with closing these deals with an uninformed borrower, and with little risk of prosecution. With a "neg am," the borrower is required to pay less than the amount due each month, with the balance being tacked on to the principal. At some point, that swollen principal will come due. Which means disaster in most cases.

Interest-Only Loans. Zero amortization is less dangerous than negative amortization, but both Florida home loans are a recipe for disaster. In both cases, the borrower makes a minimum payment for a period, covering interest but paying nothing toward principal. After 5-10 years, payments are accelerated to cover both interest and principal.A lender usually does this to virtually insure that the borrower will fall into default, and when that inevitably happens, the lender is the first to know and can approach a customer to offer refinancing to bail them out of the jam. How convenient. Under any of the above scenarios, a borrower might refinance 2-3 times before ultimately losing the house to foreclosure or being forced to sell, losing most or all his equity in the process and walking away virtually empty handed.

Prelisting Inspections: Head Off Trouble

Sandy Schoon, ABR®, GRI, a sales associate with Arizona Best Realty in Scottsdale, knows firsthand just how quickly a deal can be put in jeopardy — or slip away altogether. Schoon had a listing on an older house, built in the early ’70s. Two weeks before the sale was to close, the air conditioning system broke down. After some scrambling by the sellers and a $2,000 repair, the deal went through, but Schoon says the added stress could’ve easily been avoided.“If you do an inspection and make the necessary repairs before listing a home, the house basically has a clean bill of health,” says Schoon, who has regularly recommended prelisting inspections to her clients during the four years she’s worked as a real estate salesperson. “It’s an opportunity to take care of things that could go wrong so that they won’t come back and bite you.

”Prelisting inspections — examinations paid for by the seller before a house is put on the market —are becoming an increasingly popular way for practitioners to not only reduce the possibility of last-minute surprises but also give their cli­ents’ homes a Marketing Edge. Although some practitioners suggest prelisting inspections for older homes or those in obvious need of repair, Susan Spellman, ABR®, a salesperson with Long & Foster, REALTORS®, in Williamsburg, Va., recommends them to all her clients. Her average sales price is about $700,000, and her clients tend to live in gated communities. “Just because a home has granite countertops doesn’t mean it’s well built,” she says.

She feels so strongly about prelisting inspections that if her clients don’t agree to do one, she gives them two options: sign a letter acknowledging they’re not following her advice or work with another practitioner. “I tell my clients not to be penny-wise and dollar-dumb,” Spellman says. In the end, “my clients feel it’s been money well spent,” she says.Schoon and Spellman both mention the inspections in all of a home’s marketing materials, and make the inspection reports, as well as any repair receipts or cost estimates, available during showings.

“Sellers are realizing it’s not just their market anymore. Thanks to the Internet, potential buyers are walking into homes more knowledgeable than ever before, and sellers know they must do everything they can to sell their house,” Paterkiewicz says. “A prelisting inspection helps get buyers comfortable with the idea of making an unconditional offer. There’s also a greater sense of security because the seller and practitioner are being very forthright, demonstrating that there’s nothing to hide.”The need to make certain repairs—such as to mechanical systems (heating and air conditioning, plumbing, and electrical) and to address safety issues (broken locks, loose handrails)—almost goes without saying. But the prelisting inspection can help the owner and practitioner decide which, if any, of the remaining projects to address before putting the house on the market. Even if sellers decide not to make any of the suggested fixes, a prelisting inspection can still prove beneficial, Steward says. For example, it allows sellers to obtain cost estimates for needed work, so they can offer potential buyers an appropriate, not excessive, discount off the listing price.

Prelisting inspections can reduce parties’ stress level and eliminate many of the bumps that can throw a deal off track, says Long & Foster’s Spellman. “You want a smooth, successful transaction,” she says. “If the house doesn’t sell, it’s a lose-lose for everyone.”

How to Handle Water/Mold Damage

Water damage, if left unattended for any period of time, may lead to mold growth. People may experience health effects associated with exposure to mold in damp buildings, according to a two-year study by the Institute of Medicine. These health effects may include a runny nose, sneezing, coughing, congestion, aggravation of asthma, sore throat, or inflammation of the sinus. Concerns are more likely to arise when "at risk" individuals are exposed to mold growth. "At risk" people can include immune suppressed or compromised individuals, young children, and individuals with chronic inflammatory lung diseases such as asthma and severe allergies.
Dealing with Mold

Professionals handle water damages every day. Prompt action is required to prevent new mold growth. If your property has sustained a recent water damage, it is vital to have the water removed and the structure dried promptly.

When excessive mold contaminates a building, remediators follow five principles in dealing with the mold:

Principle 1: Provide for health and safety. Since moldy buildings are associated with health problems, remediators protect the health of workers and occupants. Some work practices prevent workers from exposure as they disturb the mold during cleanup. Other work practices prevent mold from spreading to occupied areas of the building.

Principle 2: Document conditions and processes.Remediators record conditions in the building such as the extent of the contamination and the amount of moisture saturation. Once remediation is completed, an independent indoor environmental professional may record that mold in the building is returned to normal conditions.

Principle 3: Control the mold contaminant at its source. Work practices aim at keeping mold contamination from becoming airborne and then spreading from the source to clean areas. This reduces the amount of airborne mold that workers are exposed to. It also makes the process of removing mold more efficient.

Principle 4: Remove contamination. Once mold has grown beyond normal levels, the most effective solution is to remove the excess mold contamination. This may be accomplished by physically removing materials damaged by growing mold, by vacuuming excessive mold spores into HEPA filters, and by damp wiping soiled surfaces with detergent cleaning products.

Priniciple 5: Correct the moisture problem. This is the key to dealing with mold. Stop the source of moisture that initially contributed to mold growth. Even the best cleanup efforts will not keep mold from returning if a building continues to have moisture problems.

How to Take Care of Your Home

No directions on maintenance, no guidance on repairs, no description of how all of the parts work. Home improvement expert Lynda Lyday, host of the DIY Network’s viewer call-in show “Talk2DIY,” sought to change that with her latest book. She explains how every component in the home works, from the hot water heater to the chimney cap, and provides practical maintenance tips.

Each of the generously illustrated chapters covers a different part or system of the home, such as flooring, ventilation, and plumbing. The focus isn’t on do-it-yourself repairs but on providing an overview of the terms, materials, and care needed for each part of the home. The book can help you and your clients better understand the inner workings of a home and would be especially helpful for buyer clients who just bought their first home.

Tips From the Book:
Make sure the lawn is properly graded. If it’s not graded correctly, rainwater will create puddles on the lawn and suffocate plants. In most cases, once the water has done damage to the yard, it will find ways to enter the home through cracks in the foundation. When enough water builds up against the foundation wall, it creates pressure that can crack the foundation and cause water to seep into the home.

Buy the right kind of dimmer switch. There’s nothing like being able to create an instant mood with the touch of a button, making light dimmers an excellent choice. But not all dimmers are created equal. An inexpensive switch can cause the light bulb’s filament to buzz. Spend a few more dollars on a more expensive switch, which has components to store the electrical charge that makes the filament buzz. If you’re buying a dimmer for a ceiling fan, you can’t use a regular dimmer. You must buy a switch especially for that purpose.

Burn dry hardwoods in the fireplace. Have the chimney cleaned and inspected every year to remove the risk of fire and ensure the fireplace works efficiently. Chimney sweeps clean out the soot and the creosote, which is produced by an incomplete combustion of wood. Creosote is caused by burning woods that are not seasoned or are wet, and softwoods produce more of it than hardwoods do. Season firewood under a cover for six months before burning it, or consider fire logs made of sawdust and petroleum wax, which burn much cleaner and minimize creosote buildup.