Gabe Sanders, Stuart Florida Real Estate

Q. How does the 2008 Hope for Homeowners legislation help homeowners?

A. Many homeowners trapped in high-cost, variable rate mortgages are suffering because their payments are going up and becoming unaffordable. Since property values are going down, many of them have actually lost equity and they can't refinance. Some of these people may now be able to cancel their old mortgage loans and replace them with fixed-rate loans for up to 90 percent of the home's current value. Not everyone will be eligible for this because the banks that made the loans would have to accept a loss on the old mortgage. Banks would benefit by avoiding a costly foreclosure.

Q. Who is eligible?

A. The main eligibility rule is that homeowners must be able to pay their new, refinanced mortgage based on HUD rules of mortgage financing. Besides that, eligible borrowers are those that have to spend more than 31 percent of their monthly incomes on their mortgages as of March 31, 2008. The loan must have originated no later than Jan. 1, 2008. The homeowner must show he did not intentionally miss mortgage payments. Finally, the home that you want refinanced must be the only home you own.

Q. When does the program start?

A. The law goes into effect Oct. 1 and runs through September 2011. But if you think you might be eligible for the program, you want to have your eligibility assessed as soon as possible. Contact your local HUD-approved counseling agency or Hope Now Alliance (888-995-HOPE).

Q. What can homeowners do to increase the chance that they will be eligible for the program?

A. Remember lenders can choose which loans to refinance. You can check with the lender who has your mortgage, but don't expect a quick response and don't expect a windfall. The lender might take weeks to decide if it will choose your loan to refinance.

One thing you do NOT want to do is get behind on your mortgage payments. According to Dan Seiver, a finance professor, "Turning yourself into a financial basket case is not going to work. If you turn into a complete deadbeat, the servicer is going to just foreclose and dump (your property.)"

Another thing you can do is closely track your expenses and income and project your cash flow for six months. This should give yourself better control of your finances.

Q. What if I refinance and then sell my home?

A. Congress has not created a windfall freebie for homeowners in trouble. If you sell during the next five years, you have to agree to share half the profits from the resale with the government. Remember, by refinancing under this scheme, you refinance 90 percent of the value of the house. You could say, therefore, that you have 10 percent equity. But this equity must be repaid. In the first year after a sale, the homeowner would have zero equity from a sale. The amount rises 10 percent in each succeeding year and caps at 50 percent from a sale in year five and thereafter.

Q. Where can I read about the housing bill?

A. http://banking.senate.gov/public/_files/HousingandEconomicRecoveryActSummary.pdf. The FHA's Web site at http://www.fha.gov is a place to watch for updated information. The entire 694-page bill is at http://www.house.gov/apps/list/press/financialsvcs_dem/hr3221_bill_text.pdf

When you look your best, you attract attention. A recent survey of five hundred REALTORS® proves that it's no different when it comes to marketing your home.

82 percent of those polled reported that buyers unimpressed by a home's "curb appeal" won't be interested in a closer look. Additionally, 90 percent of the agents explained that a sale depends greatly on first impressions walking through the front door.

That same number also reported that the appearance of a home's exterior is equally important as the interior features and condition. When buyers see your home from the street and the front walk, they feel that what they see is what they get.

When you're ready to list, work hard on your curb appeal and make sure the interior displays the same pride of ownership. Then have professional photographs accompany your listing on the Internet, as well as in brochures, print ads, and other marketing tools.

These photos may be the buyers' first "first impression" to look closer. The more pictures you offer, the better your chance for a quick sale. Listings with one photo sold for 91 percent of the listing price, while those with six or more pictures sold for 95 percent of the asking price. When you do the math, you'll see that an attractive home plus attractive marketing is the formula for success!

If you're planning to sell your home, take a look at our web sites to see how we will market your home. Or for detailed information, give us a call at (772) 323-6996 or visit us on the web at http://www.gabesanders.com/ or http://www.treasurecoastflhomes.com/. Our office is located at 2 N. Sewalls Point Rd. in Stuart, (Sewall's Point) Florida; please ask for Gabe Sanders or Susan Maxwell.

Occasionally homebuyers will look at a property listed as REO, a term that might be a bit puzzling.

REO stands for Real Estate Owned and refers to the inventory of real estate that banks and mortgage companies own as a result of foreclosure.

Since REO properties are those that the lender has taken back, they often have unique problems. For one thing, such properties very often need repairs. Owners who lose their homes usually go through a period when they can't afford even simple repairs. Occasionally they have been stripped of appliances and even fixtures.

For another thing, it can sometimes take a little longer to negotiate a deal for an REO. You can expect that after you make an offer, the response might take slightly longer than normal. However, you might be able to find some of the best bargains on these foreclosure properties and buying one can well be worth the wait.

Be aware, that you will be buying this property ‘as-is'. The bank or lender will not make any repairs (there are some exceptions relating to safety and zoning requirements). You will not get a sellers disclosure and it will be up to the buyer to make a complete inspection often having to turn on utilities and water at the buyers' expense.

All foreclosures will be listed on the MLS once for sale or even possibly auctioned. If you have an interest in foreclosures/REOs in the Martin County or Port St. Lucie areas, we have access to the bank owned databases, so please call us at (772) 323-6996, or visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com. We'll be happy to share our knowledge with you at no cost or obligation, and if we aren't sure of our answer we'll direct you to the best Martin or Saint Lucie County resource. Our office is located at 2 N. Sewalls Point Rd. in Stuart, Florida (Sewall's Point); please ask for Gabe Sanders or Susan Maxwell.

Sports agent. Talent agent. Insurance agent. Real estate agent. What significance does the label "agent" hold, and why is it important when buying or selling a home?

Webster's dictionary defines an agent as "a person, firm, etc. empowered to act for another." For an "agency" relationship to exist, there must be a "principal" and an "agent." The principal is the person who empowers another to act as his representative, while the agent is the person empowered to act.

In real estate, an agency relationship is created when a seller signs a "listing agreement." The seller gives the broker authority to act on his behalf to locate a purchaser. The agent must be loyal to his principal, exercise competence, and when negotiating a sale, the agent must protect the principal's financial interests. The agent must also treat all third parties honestly and fairly.

It is also possible for an agency relationship to exist between a buyer and a broker. When this occurs, the broker's fiduciary loyalty is to the buyer, and all sellers must be treated honestly and fairly. In that case, the agent attempts to secure the lowest price and most favorable terms for the buyer, his principal.

Whether buying or selling, it is critical to understand which parties make up the agency relationships. If in doubt, ask the real estate agent for a clarification.

Understanding real estate is our business, and we'll happily share our knowledge with you. Why not give us a call at (772) 323-6996 or visit us on the web at www.GabeSanders.com and www.TreasureCoastFLHomes.com. Our office is located at 2 N. Sewalls Point Rd. in Stuart, Florida (Sewall's Point); please ask for Gabe Sanders or Susan Maxwell.

If you are in good health and planning to stay in your home for a number of years, a reverse mortgage can be an excellent way to add some cash to your retirement.

Recently, Congress approved the 2008 Hope for Homeowners bill, making some changes in loan limits that might make reverse mortgages more attractive to seniors.

A reverse mortgage is a loan against your home that doesn't have to be paid back if you live in the house. You have to be age 62 or older to take advantage of the loan, which gives you cash for the equity in your home. In 2007, more than 100,000 such loans were made to seniors who wanted to add a little gold to their golden years.

The new housing law, passed in July with a starting date of October, allowed for a new, higher national loan limit of $417,000 on mortgages, but in some high cost areas that limit could be as high as $625,000. This higher limit might make a reverse mortgage more attractive to seniors with more expensive properties.

But the reverse mortgage is not just instant cash, it is also instant case -- with strings. Homeowners pay a variety of fees before getting the mortgage (which can pay them in installments, lump sums or credit lines) and these fees can be pricey. The new housing bill reduces the maximum fee to 2 percent on the initial $200,000 of the home's value and 1 percent on the balance thereafter with a cap of $6,000. This fee may not always be this high so you should shop around before deciding on a lender. Other fees include closing costs, service fees, mortgage insurance premiums, and interest rates.

To qualify for a reverse mortgage you must discuss the loan with a nonprofit or public agency approved counselor. You can find a local housing counseling agency by calling 800-569-4287.

Remember, about 63 percent of reverse mortgage shoppers decide against the loan. There are some good reasons for that. For one thing,you must be healthy enough to stay in the home. If you leave it for 12 months to go to a nursing home, for example, the loan becomes due. You must also be able to keep the property up. If you can't do so physically or financially, the loan will also become due. In addition, the high fees often discourage loan applicants.

We know and understand all the new and innovative finance methods available on the Treasure Coast of Florida. Why not give us a call at (772) 323-6996 or visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com . Our office is located at 2 N. Sewalls Point Rd. in Stuart, (Sewall's Point) Florida; please ask for Gabe Sanders or Susan Maxwell.