Millie Legenhausen, CRS, GRI, CIPS, MBA

This is not grim news. Instead it is meant to help people who may have fallen behind on their mortgage payments. This Saturday, Valentine' s Day, The Federal Reserve Bank of Boston is sponsoring a Foreclosure Prevention Workshop at the Hartford Convention Center from 10 a.m. to 4 p.m. Bankers and credit counsellors will be available to talk to struggling homeowners. In similar events, many homeowners have been able to reduce their mortgage payments after speaking to their lender.

I was informed of this event by an email from my Senator Joseph Lieberman. The event is free, open to the public, and no invitation is needed to attend. In addition to bank representatives, foreclosure prevention cousellors from non profit groups will be available to help. The location for the seminar is 100 Columbus Boulevard in Hartford. You can call for information at 860-249-6000 or log onto the website at: www.theinformedhomebuyer.org. Buyers should bring records of their income,debt, mortgage and other expenses to expedite the process.

For the most part, lenders don't want to be property owners. They are in the business of lending, not property management. It is very expensive for the lender to foreclose on a property and then sell it. Most often, the buyer for the property is the very person currently living in it. Doesn't it makes better sense to negotiate with them, rather than foreclose and dislocate individuals and families? Besides the expense to the bank, there is the cost to society and the local real estate market. Let's take on this issue of distressed homeowners head on, and stem the tide of foreclosures.

If you like an old fashioned community with quaint homes, apartments, and small shops, you will love Whitneyville in Hamden, CT. Whitneyville is home to Home & Hearth Realty, so I spend a lot of time here. It's flurrying lightly today - we expect heavier snow later. The weather, however, isn't as relevant here, because people can walk to shops if they need anything, without necessarily depending on their cars. On a snowy day there is nothing better than lunch at the Playwright. It is a true pub, with delicious pub fare and very good daily specials. Their Shepards Pie or Guinness Stew are real comfort foods. You wouldn't expect it, but their egglant parmesan is to die for!

Across the street from me is Books and Company, where you cab grab a cup of coffee and curl up with a good book. Bring your used books and get credit towards the purchase of a new one. Last year the shop had to close, when a driver drove through the front window and took out shelves, furniture and sprayed glass all over the store. The neighborhood rallied to help by donating books, helping with the renovations and donating gifts for raffles. Within months, Books and Company was back, stronger than ever.

If you need a gourmet item or just a quart of milk, you must go to Whitneyville Foods. The store is renowned for its quality foods. If you need a cheese from just about anywhere in the world, you can find it there. Pair it with a fabulous crusty bread, and you have an occasion. Besides shops, you can walk to the post office, the bank, the bus, and the library. Something to think about, as we ponder the use (and cost) of energy in our lives. Bundle up, get some exercise walking and discover Whitneyville. I love calling my community of Whitneyville home.

Contrarian investors know to jump in when everyone else is fleeing. Right now the news couldn't be bleaker, but could this be the bottom of the real estate slump? I am awaiting Congress' vote for the $700 million bailout with the rest of you. Another big bank was scooped up at a bargain basement price last night. Looks like a lot of Fall cleaning going on in the financial markets. If Congress approves this bill, pressure on the economy should ease and money should start flowing again. That should jump start this housing market.

Looking at housing in my town of Hamden, Connecticut, I see that our inventory has dropped recently. We have 317 single family homes for sales in a town of nearly 60,000 people. Two thirds of the inventory is priced under $300,000. People are not fighting this market. If they tried to sell and couldn't, they took their houses off the market. Of course, those that have to sell are in a different predicament. They have to negotiate hard with buyers, who are looking, and finding, bargains. Despite this situation, the spread between listing and sales prices is less than 10%, on average. We all know, if a contract favors one party too much, it generally falls apart. A good contract is a win-win situation.

So we wait. I predict this log jam will break soon. There are buyers and smart investors out there, who will see this as an opportunity that rarely comes along. Prices and interest rates may fall a bit further, but this is prime time to make a move. Economic activity is on hold right now, but not for long.

Fortune's inaugural Small Business Magazine for April 2008 has named Hamden, Connecticut one of the 100 best places in America to live and start a small business! Hamden came in #33 on the list, reflecting the town's focus on bringing in new business in manufacturing, health care, and services. There are several Enterprise Zones throughout the town with development incentives. Funding is available in the form of grants, tax abatements, and low-cost loans. The Economic Development office will help with information. This is a healthy trend in a sagging economy.

This recognition is an added bonus for a town that offers wonderful variety. Hamden is urban, suburban and even rural in some parts. The town covers 33 square miles in area and is home to over 59,000 residents. Its major employers are Quinnipiac University, several large health employers, and Town services and schools. Residential housing prices can range from $200,000 to $2,000,000. There is beautiful topography with rolling hills, trout streams and Sleeping Giant State Park with its 32 miles of hiking trails. Located directly north of New Haven, it offers quick access to a thriving cultural scene.

I have proudly sold homes in Hamden since 1991. If you have clients relocating to the area to start a business, work in healthcare or education, or work anywhere in New Haven County, please contact me for an information packet or for a referral.

... and other schemes. Have you received calls from your nocturnal clients who watch infomercials promising great buys and quick profits in real estate? I get these calls periodically - mostly to ask if these opportunites exist locally. They don't. The market in Connecticut is slow, but not that bad. To give you some indication of our optimism, there is a house in New Haven with contaminated soil that is still listed above $200K. For a similar amount you can purchase a house without a kitchen in North Haven. In either case, the cost of rehab and/or remediation would far exceed the current fair market value of the finished product.

There is money in Sweat Equity, not in Flipping. Buyers willing to buy a home that needs TLC will probably do just fine over time. If they are going to be living in a neighborhood they like and slowly improve the house, they should build equity in the next few years. Statistics bear this out - people make money on houses they have owned over a decade. If they think they are going to buy a wreck to rehab and flip, I will bet they are going to loose money. The cost of labor in Connecticut is very high, and anyone who has priced building materials knows that projects are going to cost substantially more than anticipated. Carpenters have an edge in that they can do the work themselves, if they can find the time.

Foreclosed properties are often in nightmarish shape. They are also sold "as is, where is". I prefer to sell the probate properties, that often just need cosmetic work and relatively minor repairs. Bathrooms and kitchen may be "dated" in probate properties, but they are in working order. Buyers can move in and start to modernize, hopefully one project at a time. The greatest danger to buyers today is to try to do too much at once. Start a project and finish it! I have seen several situations over the years where buyers started demolition in several rooms at once, ran out of money, and walked away from the house in frustration and defeat.

As professionals, let's use this time to identify homes in our market areas that are the true "diamonds in the rough". By advising our clients to purchase these homes, we can help them build equity without all the gimmicks.