Is your mortgage payment too high? If your answer is "yes," you may be eligible for help from Washington. President Obama's new program, Making Home Affordable, is ready to help over nine million Americans who need to refinance their homes or have their loans modified.
It is easy to find out if you qualify for this program. The government's new website www.Makinghomeaffordable.gov was set up in mid-March to help people learn if the housing plans will rescue them from a high interest rate or an excessive payment. The plan is unique because it establishes clear standards for who qualifies and who does not.
The refinancing part of the program might apply to you if you are up to date on your payments but cannot refinance because the value of your home has fallen. These days, lenders want to make sure there is equity in the home before they will issue loans. (When your home is refinanced, you are actually getting a new loan.) The federal program will help you if you meet the following criteria:
The loan modification part of the program is aimed at you if you are having trouble making your payment, either because your interest has increased or your income has decreased. You can qualify whether you are behind or not yet delinquent on your payments. This program might help you if meet these requirements:
On the website, you will be asked a few simple questions to see if you may qualify for either of the programs. If you do, you are then told to contact your lender to complete the application. The site even lists all the documents you should have ready when you place the call to the bank or loan servicer, such as mortgage documents and payment books for your first and second mortgages, account balances and monthly payments on credit cards, student loans, and other debts, tax returns, recent paystubs for members of your household, information about savings accounts or other assets, and especially in the case of a mortgage modification request, a letter describing what happened that now makes it hard for you to pay your mortgage.
The website has helpful payment calculators to show what your new payment might be and a list of frequently asked questions to make the program even clearer. It is intended to put your mind at ease if 
you want to stay in your home but are having trouble with the current payment.
What if you do not qualify for the program but still need help? This is where a Realtor like myself who is a Certified Distressed Property Expert can offer you other helpful solutions to avoid foreclosure in Denver. Contact me today at Bandy Homes for a caring and confidential analysis of your situation.
Marianne Bandy
Even if you aren't thinking of refinancing or modifying your mortgage under the President's new housing plan, you can still get some cash from Uncle Sam. You can qualify for a tax credit by making your home more energy efficient or converting your home power supplies to renewable forms of energy. These include wind, solar, geothermal (from the earth), or fuel-cell technology.
How can you take advantage of the tax credit and make your home more energy efficient at the same time? You can receive up to $1,500 in credits for adding or replacing windows, doors, roof insulation, heating and cooling equipment, and wood or pellet stoves with new more energy efficient models in 2009 or 2010. For every dollar you spend, you will receive a 30% credit up to the $1,500. That means if you do a big project - such as replacing a bunch of windows in your home or having whole house insulation blown in - you can get the whole $1,500 credit on a $5,000 job. If you want to add a new energy source to your home, there is no limit on the amount of the credit.
The government wants to make sure that the replacements will do the job, so you have to make sure what you select meets Uncle Sam's requirements. All the specifications are listed on the websites like www.energystar.gov (listed on the Extra Credit charts at left.) If you buy your new 
windows or insulation at major home stores like Lowe's or Home Depot, the information will probably be noted on a sign or printed on the package. If you are having a contractor install the upgrades, make sure he buys only approved products and gives you a receipt that shows what was installed.
This new program is very consumer friendly. Since it gives a credit, it actually reduces the amount of tax you owe. The amount of the credit is much more generous than a previous credit that was only $500. The program is in effect through 2010, so this gives you some time to budget for big energy-saving remodeling projects.
But there's another benefit besides the tax break: When you replace drafty windows and doors, you cut your heating and cooling bills and increase comfort. That in itself will be a great gift!
Save your energy when looking for a home! Whether you're moving across town or relocating to Denver from out of town, contact Bandy Homes today for the best in Centennial homes
Marianne Bandy
So what is CHFA and why should I care? CHFA is the Colorado Housing and Finance Authority. Their mission is to increase the availability of affordable, decent, and accessible housing for lower income Coloradans.
As of March 2nd, CHFA has made several changes to their programs to help buyers purchase homes in this challenging market.
Here are a few highlights of both the changes and what stayed the same:
First the changes:
What stays the same:
Where we see the biggest value is the offer to fund a 580 credit score and allow the higher income limits. Otherwise, FHA loans are just great.
For specific questions on how you may qualify for a CHFA loan, feel free to give us a call at Bandy Homes. We will prepare the options side-by-side so you can see the different ways to qualify for your new Denver home.
Average Price - $218,010 - a 2.19% appreciation from the month before, the first time we've seen appreciation since June of '08. But, it was a12.53% drop from February, 2008
Number of Sales - 2484, only a slight drop from January. But, a 33% drop from February, 2008
Number of Listings - 20,069, compared iwth25,037 just one year ago. This is good news, less inventory should help average price come up.
Another interesting statistic is the fallout rate or the percentage of homes under contract that didn't sell went from 24% last month to 35% this month.
The homes newly under contact went from 3,831 for January to 4,183 for February. This is the highest number we've seen since October.
So, we are seeing some glimpses of hope. The next few months will be critical.
Looking to buy a home? At Bandy Homes, we're here to help you take advantage of improving market conditions.
Know someone facing foreclosure in Denver? We may be able to help. Call (303) 746-7799.
Mariannne Bandy
Laws in most states favor buyers in cases where you find a major defect in your new house, but pursuing actions with sellers after you have moved into your new home is time consuming and inconvenient. Assuming the problem is not major enough to void the contract, you may be stuck with a home with a flaw you would not have accepted had you only known it existed. A simple way to prevent most dilemmas like this is to request a house inspection as a contingency of your offer.
Since the 1980's, when a California courts case required real estate agents to disclose to buyers any known defects and ones they should have known about through due diligence, most other states have enacted laws requiring agents to disclose material defects. This turn of events gave the home inspection business a shot in the arm. Home inspections became the norm for how buyers, sellers, and agents can share knowledge about the condition of the home.
Some states now require home inspectors to be licensed. Many inspectors belong to trade associations such as the American Society of Home Inspectors (ASHI) or the National Association of Home Inspectors (NAHI), as well as state associations.
If you are looking for an inspector, it's best to ask your real estate agent, who can offer a referral, or talk to recent buyers in the neighborhood who have used a particular firm. The credentials a home inspector has are important, but the mark of a good home inspector is thoroughness. You want a home inspector with a good track record of finding property defects during the inspection so that you do not discover them later.
The inspection will cover what can be seen in major systems from roof to foundation. Separate inspections may be necessary for termites, septic systems, or other specialized things like spas or pools. It is not designed to critique aesthetics or lifestyle.
Ideally, when the inspection takes place, you should be there, but the seller should not. The seller needs to provide access to all parts of the home and have the utilities on. The process might take several hours. If you are unable to be there for the whole inspection, try to come at the end so the inspector can walk you through the house and explain his findings before preparing his report.
When the inspector discloses his findings, you may have some decisions to make. How serious are the flaws he found? How much will it cost to fix them? What is the priority to fix them? If the problems are serious enough, you might not want to complete your purchase.
Depending on the findings, your real estate agent may be able to use them to help you negotiate on price. If the seller already mentioned a problem before the inspection and set the price based on that, it is unlikely he will further drop the price based on that. If the flaw is a minor one or one that a sequence of previous owners have lived with, the seller may give a little to sell the house in this buyer's market, but your agent can guide you as to what is reasonable to expect.
At Bandy Homes, we will guide you through all phases of the home buying process in Denver. We also offer great tips for pricing your Denver home for sellers.
Marianne Bandy
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