Debi Boucher - "Realtor Showcase" Real Estate Slideshows/ Photographer

It's Coming, But They're In No Big Hurry....

Regulators have finally voted to curb the discriminatory, unfair, and controversial practices of the credit card companies. That's the good news. The bad news is these practices will continue until the new regulations go into effect July 2010.

What will change?

Banks will be prohibited from raising your interest rate unless your payment is more than 30 days late.

They will no longer be able to maximize penalties based on the way they apply your payments.

No more double cycle billing, which charges interest on the previous months balance.

You'll have more time to make your payment, and your payment will be applied to the higher rate balance first.

And here's my favorite: No more universal default! This is the practice of increasing your interest rate if you missed a payment on a different card.

What's the downside?

Credit will be harder to get, due the higher expense to the credit card companies. And if you have a lower credit score, or a limited credit history, you can probably forget about it.

Low intro offers and zero percent transfers will likely be a thing of the past.

Expect higher rates across the board.

We carry about $976.3 billion in credit card debt in this country, and it is reported by the Federal Reserve that 4.9% of all credit card debt in the third quarter of this year was delinquent.

Prudential Professional REALTORS, ASP REALTOR, Woodland Park Real Estate, Woodland Park Colorado 80863 – Serving the City of Woodland Park, Teller County, Ute Pass, and Park County since 1997.

Renters Now Allowed To Stay In Foreclosed Homes

Until now, when the renter's landlord failed to pay the mortgage, and the home was foreclosed on, the renter was just plain out of luck - facing eviction even if they had been paying their rent. Single family homes, and multi unit investment complexes would see the renters forced to move out. In the case of multi unit properties, this lack of cash flow clearly makes it more difficult for the property to sell later.

Going into effect on January 9, 2009, Fannie Mae will begin acting as landlord, and will sign new leases for thousands of renters living in foreclosed upon properties. (An estimated 4,000 renters)

As a part of the 700 billion dollar Emergency Economic Stabilization Act, both Fannie and Freddie were required to allow tenants to stay in their homes, as long as they were paying their rent, until their leases ran out. Apparently, they were having some trouble following those guidelines, but Fannie at least, has changed their policy. To date, Freddie has not, nor have any in the banking industry.

In November, according to Realty Trac, there were nearly 260,000 foreclosure filings. We've all been hearing alot about the home owners in trouble, but what about the renters? Imagine paying your rent on time, being a responsible tenant, and evicted just the same?

Fannie Mae's decision will affect the 4000 renters under their books, but what about the thousands more, with landlords having different types of loans, going into foreclosure?

Yes, I think it's time renters' rights were respected as well. I hope the other financial institutions will follow suit, and soon.

Prudential Professional REALTORS, ASP REALTOR, Woodland Park Real Estate, Woodland Park Colorado 80863 – Serving the City of Woodland Park, Teller County, Ute Pass, and Park County since 1997.

Submit an Augmentation Plan - Or Lose Your Water!

Local news station, KRDO reported that 64 households in Teller County's Deer Mountain Ranch and Lakemoor West have been informed by the state Division of Water Resources that they must file a 'water augmentation plan' with the state by January 15, or stop using their wells by January 20. If they fail to do so, they will face court action. An Augmentation Plan is one that outlines how and when the water used will be replaced so as not to deplete the source of water to a senior appropriator, (see 'What are water rights, anyway?' below).

Residents say this is the first they've heard of it, had no prior information, and no warning of the situation. They have also been required to buy meters to monitor their well water use, at a cost of about 100 dollars, plus plumber's fees. The subdivisions have no active Home Owners Association that could have informed residents.

A senior appropriator somewhere along the line, has "called" in his right to that water.

So, how does this happen? The Beginners Guide To Augmentation Plans For Wells , states:

"If you are considering using wells to provide water for a lawn and garden, domestic animals, a subdivision, or some other project, you should be aware that in some areas of Colorado you may be unable to get a well permit without an Augmentation Plan."

The question then is, was an augmentation plan not provided when these subdivisions were first planned? And if not, why not? According to my research, it was in 1972 that the first Colorado law was passed allowing for water augmentation plans.

What are water rights, anyway?

The Doctrine of Prior Appropriation, (aka the "Colorado Doctrine" of water law), defines water rights as such:

"The allocation of water rests upon the fundamental maxim "first in time, first in right." The first person to use water (called a "senior appropriator") acquires the right (called a "priority") to its future use as against later users (called "junior appropriators")." So, in times of drought, a senior appropriator has first right to the water, even if it means the junior appropriator ends up with none.

It is important to note here that a well permit does NOT grant a water 'right':

From Western States Water Laws:

"By law, every new well in the state that diverts groundwater must have a well permit. Exempt Well Permits, however, can be obtained for wells that pump less than 15 gallons per minute. For these wells, the state will give well permits that are exempt from the priority system. In order to obtain a permit, a person must file an application for approval of a permit with the State Engineer. A permit must be obtained from the state engineer prior to any utilization of groundwater, but the permit does not constitute a water right to the groundwater. A ground water right can only be obtained through the formal application to a water court."

If you have a well producing more than 15 gallons per minute, and you want to obtain the 'right' to that water, your well must be 'adjudicated'.

"Water rights in Colorado are adjudicated by the district water courts. Colorado has a process of individual adjudications where each right is adjudicated as it is approved."

Which means, you aquire a right, (through the appropriate water court), whether senior or junior, to that water. This would not mean, however, that a junior right would be guaranteed should the senior right holder require that water.

Water rights are a very complicated, and as we've seen, far reaching issue in our state. There are MANY attorneys in Colorado and other western states who specialize in water rights law.

As we deal with the other consequences of drought in our region, it would be good to remember the potential for loss of use of our wells, and educate ourselves accordingly.

For More information, contact:

Colorado Division of Water Resources

1313 Sherman St. Rm. 818

Denver, CO 80203

303-866-3581

http://water.state.co.us/

All Photos taken by Debi Boucher, all rights reserved and may not be reproduced without express written permission. Prudential Professional REALTORS, ASP REALTOR, Woodland Park Real Estate, Woodland Park Colorado 80863 – Serving the City of Woodland Park, Teller County, Ute Pass, and Park County since 1997.

Current Woodland Park Home Values Compared to One Year Ago

The following provides information for the differences in home values in the City of Woodland Park between October 2007 and October 2008.

On the average, our prices are down 4.3%, with the greatest drop in values affecting 4 bedroom homes which are down 10%, 3 bedroom homes down 5.7%, and 2 bedroom homes down 4.1%.

Current Average 1 Year Ago Average

2 bedroom - 162,500 169,500

3 bedroom - 200,000 212,000

4 bedroom - 294,000 326,600

The average price per square foot in the past year has gone down from $232.00 to $153.0, an average of 34.1%.The greatest drop per square foot is for 2 bedroom homes, down 58%, 3 bedroom homes down 12.6%, and 4 bedroom homes down 6.7%.

Prudential Professional REALTORS, ASP REALTOR, Woodland Park Real Estate, Woodland Park Colorado 80863 – Serving the City of Woodland Park, Teller County, Ute Pass, and Park County since 1997.

Cost Vs. Value - Home Improvement Projects

REALTOR Magazine has come out with this year's report on the home improvement projects that will best help in getting the home sold, and give the seller the most return for their money. Based on national averages, they say, exterior remodel projects such as siding, decks, and replacement windows will provide the most return. On the inside, only a kitchen remodel comes close to the same return, and a minor upgrade will return more than a major remodel, 79.5% vs. 76%.

The following percentages are REALTOR Magazines' 2008 Colorado average returns on the money vs. the national midrange average, for both midrange and upscale remodels and replacements:

Remodels MidRange Upscale National Avg.

Bathroom 73.9% 72.0% 74.6%

Basement 82.6% 72.9%

Kitchen (minor) 81.5% 79.5%

Kitchen (major) 78.0% 72.8% 76.0%

Home Office 56.4% 54.6%

Replacements

Roofing 71.3% 68.4% 65.5%

Vinyl Siding 83.7% 81.5% 80.7%

Vinyl Windows 76.6% 79.4% 77.2%

Wood Windows 80.9% 78.1% 77.7%

Looks like finished basements are a really big deal in Colorado, about 10% higher return on the money than the national average.

Renovations are holding their values better than home prices. The reason, according to the study, is that when the housing market slows, people tend to stay where they are and renovate, rather than move. And when the time does come to sell, the improvements they've made will help to sell the home.

Prudential Professional REALTORS, ASP REALTOR, Woodland Park Real Estate, Woodland Park Colorado 80863 – Serving the City of Woodland Park, Teller County, Ute Pass, and Park County since 1997.