Sandy Ogburn Sandlin - Fine Baton Rouge area homes

Perhaps you've come to the conclusion that selling your home at a short sale price would be the best way for you to end your relationship with your beautiful home. You are upside down on your mortgage and perhaps your income has been cut by a job loss or divorce. Maybe you are even at the point where you would just like to give it back to the bank. You know that there are good realtors around who can help your market your home to a buyer and then plod through the process of completing the short sale. Then, your realtor tells you that it might take months to process the paperwork. At the end, the bank could turn down your request.

Real estate experts have made a strong case for the economics of short sales: this process can save a bank many extra costs involved with a property that is foreclosed on. When a person turns in their home to the bank, there are similar cost savings. Lenders have been reluctant to embrace the concept - whether due to reluctance or due to not having adequate systems in place to process short sales efficiently.

Until now, housing plans to help troubled homeowners under the President's Making Home Affordable program have not addressed short sales. Last week, however, new plans were unveiled that would offer lenders (and borrowers) incentives to pursue short sales and "deed in lieu" of foreclosures. Participating lenders would receive $1,000, as would second mortgage holders who release their liens so that the deal could go through. Borrowers would receive $1,500 - perhaps enough to put down a deposit and move elsewhere.

The government is predicting that hundreds of thousands will be helped by the new add on to the program, especially since about 20% of homeowners have negative equity in their homes. Because of this "underwater" status, many do not qualify for loan modification or refinancing options offered by the original program announced in February. So far, 55,000 homeowners have had their loans modified, while 3,600 have been refinanced.

Stay tuned for updates to the new short sale provision! Sandy's Team is experienced with short sales and help you buy or sell a home East Baton Rouge, Livingston Parish, or Ascension Parish. We have a great stock of new and pre-owned homes available. Give us a call at (225) 677-SOLD, email info@sandyco.com, or check out our website.

When spring comes, some people think about moving and start preparing their home for sale. Others think about how nice it will be to enjoy the yard and the other nice features of their homes and prepare them for summer enjoyment. May is a great time to undertake the annual maintenance that will keep the place in tip-top shape and might even uncover some more major things that need attention.

This year, homeowners can get tax credits for adding energy saving featured to their homes. As you are doing your spring maintenance, consider replacing windows or doors, adding insulation, getting a new heating or cooling system, placing your thermostat, or adding solar panels or another "green" temperature control solution while the incentives are available. Assessing the situation now will give you some time to plan.

The Obvious Things to Do

Even very good housekeepers are called to action when light floods the home in spring and draws attention to dirty windows and dusty blinds. Taking down the blinds and drapes and then washing the windows is a great project for a sunny day. You can vacuum the tops of the drapes where dust tends to collect and soak dusty blinds in the bathtub while you do your magic with a rag and a squeegee on the windows. You can use a hose to help you rinse outside windows. If your home has high cathedral ceiling windows or is multiple stories, you might think about calling in a window washing service.

As you're doing the windows, make sure to take a look at the screens. Ripped or torn screen are unsightly and don't do their job. After giving all the screens a good washing, repair or replace them before putting them back up on the window. For tips on screen repair, see our previous blog New Screens Give a Fresh Look to Your Louisiana Home.

Since spring marks the changing of the guard in your heating and cooling systems, this is good time to have your furnace and air conditioner serviced by a licensed professional. In any case, this is a good time to replace the furnace filter and vacuum all the vents and grills. Your air conditioning filter will also need changing or cleaning. Take a look at the outside unit and brush away any dirt from the evaporator pan and clean and replace the pan at the bottom of the unit. To prevent the build up of mold, mildew, and algae in air conditioning lines or drip pans, do preventive maintenance with bleach - a cup in the pipe that drains the moisture from the house into the ground and a capful or two in the pans.

Spring is a great time to wash down your home to remove winter dirt. You might even think about having it professionally power washed to remove winter dirt. If you see that your paint is peeling or dull or the siding needs help, you have time to paint (or hire a painter) or take the plunge and have siding installed. A paint job can be costly but it lasts six to eight years; maintaining the exterior of your home is important to maintaining property values. When you do want to sell your home, a pleasing exterior is crucial.

Landscaping is the other part of creating an inviting outside. After cleaning up from the winter, it's time to plan a schedule for lawn maintenance and planting. Make sure that your hoses and automatic sprinkling systems are in good condition. If you don't like to do outside work, there are plenty of lawn services around who can keep your property looking great.

Spring is a good time to rid the closets, garage, basement. and attic of unneeded clothes and other items. In our current economy, what you aren't using could be very helpful to someone else. You might plan a yard sale or take your discards to the Salvation Army or a shelter.

The payoff

Aside from the merits of having a clean home, having one that is maintained is also cost effective. You can alert yourself to things you need to take care of and be able to better budget for big projects. This year, you can assess whether to install energy efficient features with some help from the government. Finally, even if moving isn't on your agenda now, you will be able to prepare the home for sale much more quickly if you have taken care of maintenance issues as they come up.

Thing of buying or selling your Louisiana home? Sandy's Team will help you close the deal in East Baton Rouge, Livingston Parish, or Ascension Parish. We have a great stock of new and pre-owned homes available. Give us a call at (225) 677-SOLD, or check out our website, or email info@sandyco.com.

In assessing the costs of homeownership, one thing most prospective buyers must put into the mix is the cost of Private Mortgage Insurance, known as PMI. This insurance, underwritten by private companies, is usually required by your lender if you obtain a loan for more than 80% of your home's value.

Some lenders who carry their own notes bypass this requirement, but loans sold to Fannie Mae or Freddie Mac must have this insurance included in the mortgage payment. PMI protects lenders against loss if you default on your loan and enables you to purchase a home with less down. If you put 5, 10, or 15% down, for example, PMI covers the difference up to 20%.

Rising foreclosures, especially among homeowners with little equity in their homes, have caused insurance companies to tighten underwriting standards. This makes it harder to qualify for the required PMI coverage, especially in areas where foreclosures are high. Homes are also being appraised more carefully to make sure the values are correct.

One prominent player in the PMI industry, Mortgage Guarantee Insurance Corporation (MGIC) now expects borrowers to have a 700 credit score, a debt-to-income ratio of no more than 41%, and 10% down payment in hand. Requirements vary among insurers, but few would agree to 100% financing on homes any more.

So, what should you do if you have a small down payment and a low credit score? Your lender can present some options to you but the choices often include FHA financing. FHA and other federal loan products include their own insurance, require a 3.5% down payment, and have lower credit score requirements than conventional lenders. (Most lenders require a minimum 620 score these days, up from 580.) More liberal FHA requirement have increased its popularity in many areas, including Alabama, where FHA financing represent s30% of loans now compared to 5% back in 2005.

FHA loans have lending limits based on the area; the maximum loan can be over $729,000 in some areas, but in the Baton Rouge area, the limit is $280,000 for a single family home. If you know you have limited funds for a down payment and other credit issues, you should set your sites on one of many fine homes in your price range - and within FHA guidelines.

The tougher standards might seem harsh but benefit the housing industry by promoting affordable, equity-based homeownership. Twenty percent remains the magic number in the PMI world. If you can put down 20%, you don't need PMI. The closer your down payment is to 20%, the less you have to pay. Once you have paid enough into your house to equal 20% equity, you no longer have to pay.

Sandy's Team can help you weigh your options and find you a great house in East Baton Rouge, Livingston Parish, or Ascension Parish. We have a great stock of new and pre-owned homes available. Give us a call at (225) 677-SOLD or email info@sandyco.com.

Have potentially high repair costs discouraged you from taking advantage of a great deal on foreclosed or bank owned homes? Keep in mind that while the prices are tempting, the last owner was probably short on cash to do much upkeep or the home may have been vacant for while or been vandalized by the former owners or intruders. Just because a home needs work does not mean you should pass on it if you like it. As it happens, there is a great source of funds available to enable you to make repairs and wrap the costs to do into your mortgage. The 203K loan is designed just for this.

Sponsored by the U.S. Department of Housing and Urban Development, the loan is designed to simplify financing on owner-occupied homes that need work at the time of purchase. There are some restrictions on how the funds can be used, but with the exception of adding luxury features, major structural repairs, or new construction, the money can go toward most other things, such as replacing major systems, replacing appliances, rehabbing interiors, or even adding rooms or decks. Even investors who plan to rent or flip the property can qualify for the funds - up to $35,000 for the streamlined program or more, depending on what you need and can afford.

Keys to obtaining 203K funding are a knowledgeable Realtor and a willing lender. In times past, when foreclosures were not such a common part of local housing mix, some Realtors did not know much about these loans, while some banks did not offer them.

The amount of the loan needed for repairs will come out of the amount of the loan you have been preapproved for. For this reason, you should seek pre-approval before getting too serious about a house. Armed with the knowledge of how much you can spend, you can then work with an experienced Realtor to find properties in your price range. If you find a property you like that needs work, you and your experienced Realtor can then work with an experienced contractor to see what is involved.

If the contractor finds extensive damage that would put repair and mortgage costs above the pre-approval amount, you can keep looking for another home or find ways to bring repair costs in line with his budget. For repairs under $10,000 the lender may allow the buyer to do the repairs himself - a great idea if you have skills or the repairs are the kind that require more time and effort. In some cases, the lender will let the buyer be his own contractor.

There are many cases when the rehab investment will pay off handsomely for the buyer when he resells the property. Before proceeding further, the Realtor should weigh in on whether making the repairs would put the home in line with housing values in the neighborhood. If you overinvest in the property, you may not get it back at resale.

If you decide to go ahead with the purchase, you must present the contractor's written estimate to the bank. The lender will then add 10% for cost over runs and figure in your3.5 % FHA down payment and the selling price. Then the lender will compare the total with the expected "repaired value" appraisal and make a decision on the loan.

Once the loan is approved, the sale is completed; the repairs must begin within 30 days. Funds for the remodeling are put in escrow and paid out upon completion of each part of the repair. All repairs must be completed within six months of purchase.

The funds from this program can be combined with other incentives offered on a state or local level - and with the $8,000 new homebuyer's tax credit. For information about the program, see the HUD website to talk to your experienced realtor in the Baton Rouge - Prairieville area - Sandy Sandlin. Sandy's Team can help you find the right property and walk you through your 203k loan. Call us today at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

We all know that curb appeal brings buyers to your door. If your home looks good from the street - your yard is neat with beautiful trees and plantings, the outside of the home appears to good condition, the sidewalk is intact - people will stop. When they get to your door, will they see little indications that you have not kept up your home? Ripped screens are one example of a simple repair that if left undone can put potential buyer on alert.

Even if you have no plans to move, repairing damaged screens and replacing worn rusted ones is quick and relatively inexpensive way to perk up your home. Worn, ripped screens not only look unsightly, but are an open invitation to mosquitoes, flies, and other unwanted visitors to your home. If you are planning to upgrade your windows so you can take advantage of the new Stimulus Bill energy credits, you may get screens included with the windows. If not, here are a few tips.

Needless to say, you can always take your screens to your local hardware store or home improvement center. If the screen frame is in good condition, the pros there can replace the screen fabric or sell you a new one if the frame is too rusted or damaged to fix. They can even make you a custom screen for an odd-sized window. If you have many screens to fix, taking them to be repaired can be costly. If you don't have the time, tools, or inclination to repair them yourself, this is still the best option.

Screen repair can be a manageable do-it-yourself project. As with any project, first assess the damage. Small holes can be quickly repaired with a drop of epoxy to close the hole. Rips up to a couple inches wide can be fixed with a screen patch kit. Using a patch an inch larger than the hole, you can weave the patch into your screen with the open stands of metal that protrude from the patch. The results are functional but may not win any beauty contest; this is a better technique for back or side windows than for front doors and windows.

When the damage is more extensive, you will have to replace the screen fabric, which is a more involved task for wood frames than for vinyl frames. For vinyl frames, the new fabric is forced into a groove with a flexible bead once old fabric has been removed. It is important to stretch the fabric so it is taut enough that a penny would bounce off it.

You can replace screening in wood frames with either the wedge-and-cleat or bow method of installation. The first method works best for small and medium sized windows. With this, you lay the screen frame on a work table and nail the fabric to the top of the frame and to a cleat that is nailed to the table at the bottom of the frame. To stretch the screen, opposing wedge are the driven against each other to push out the cleats. After the fabric is stretched, it stapled to the frame.

Larger windows and doors call for the bow method. Clamps and spacers slightly bow the frame. The screen fabric is stapled to the opposite ends; when the clamps are released, the frame straightens and stretches the screen. You also do this on the other sides.

Thinking of moving? For new construction or great existing homes in the East Baton Rouge, Livingston Parish, and Ascension Parish area, give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com.