Sandy Ogburn Sandlin - Fine Baton Rouge area homes

Many distressed homeowners have been eagerly awaiting the President's loan modification program. Obama first announced the program on February 18. It took several weeks for the government to clarify the terms and for the financial institutions to update their systems and start accepting applications. Many people were becoming very frustrated but now the long awaited plan is underway!!

The Treasury Department announced Wednesday the first six participants to sign up for President Obama's plan were JPMorgan Chase which will get up to $3.6 billion in subsidy and incentive payments; Wells Fargo $2.9 billion; and Citigroup, $2 billion. Also included are GMAC Mortgage, $633 million; Saxon Mortgage Services, $407 million; and Select Portfolio Servicing, $376 million. JPMorgan Chase and Wells Fargo had already begun modifying loans earlier this month. CitiMortgage just signed up for the program and will begin to process applications soon!

"We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership," Wells Fargo said in a statement. The two-part plan calls for servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages. The equity a homeowner has does not figure into the calculations. There is $75 billion allocated to subsidize part of the payment reduction. It will also provide thousands of dollars in incentives for servicers and borrowers to participate.

In qualifying loans the cost of foreclosure would need to be higher than the cost of the modification. The Treasury will not provide subsidies to reduce rates below 2%. The modification plan has the servicer reduce interest rates to the point the monthly obligation is no more than 38% of a borrower's pre-tax income. The government would then kick in money to bring payments down to 31% of income. The loan balance can also be reduced to bring payments down to the preferred range. The government will share in the cost, up to the amount a servicer would have received if it had reduced interest rates.

Servicers will use the Treasury funding to pay for incentives for themselves, homeowners and investors in addition to subsidizing interest rates. The program gives servicers $1,000 for each modification and another $1,000 a year for three years if the borrower stays current. If they modify at-risk loans before the borrower falls behind servicers will get $500 and the mortgage holder will receive $1500. What is unclear is whether the servicers will have to give homeowners their incentives out of their own funding shares. Homeowners will get up to $1,000 a year for five years if they keep up with payments. This will be used to reduce their loan principals.

We are here to help with all your real estate needs. Give Sandy's Team a call 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 have all heard of a credit scores, the three-digit numbers lenders use to determine creditworthiness. Credit scores, as we discussed in this blog a couple weeks ago, are used to predict how likely you are to default on a credit account or loan. They are used to set interest rates and terms. But did you know that the credit scores is not the only way a financial institution evaluates your ability to repay a loan? There are actually several scores that are affected when you make a payment or use a credit card.

These scores are also used to determine whether or not the lender is willing to offer you credit. While your credit bureau score must be made available to you under Federal law that is not true for the other scores. Actually, financial institutions aren't quick to reveal how they make their decisions on creditworthiness. Lenders often consider these other scores proprietary information. So what are these other scores?

The first one on our list is the Attrition-risk Score. This risk refers to the likelihood you will stop using your line of credit. This score is used to determine whether or not to aggressively pursue keeping you as a card holder. If it looks like you may be considering changing credit cards, the lender may send you an offer for a lower interest rate or higher credit limit. Next you have the Behavior Score. While your credit score is an overall view of the way you handle credit, this score focuses on a single account. Do you pay the bill in full each month or frequently pay only the minimum payment. Your behavior score is used to determine how to respond if a payment is missed. If your behavior score shows that you are never late, they will usually not call right away. If you are late consistently, they will call earlier in the delinquency.

There is a Transaction Score. This score is used when you actually make a purchase and normally is used to determine if this is a fraudulent charge or not. It can also be used to try and determine if you might be headed for trouble. If you suddenly start making cash withdrawals that may throw up a flag that you may be strapped for cash. Remember lenders are looking to protect the profitability of your account, if you are making cash withdrawals that may mean you have lost your job which would affect you ability to repay your loan. The Revenue Score gauges how much money each account is likely to generate.

There is even a score which predicts the likelihood you will respond to a new offer of credit, it is called your Response Score. With so many different ways for these scores to be affected you should think twice before you pull out that plastic! By following basic financial principals you can know these scores are where they should be, even if you will never see them!!

We are here to help with all your real estate needs. Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

There is nothing like buying new construction! Everything is fresh and unused. It is a wonderful feeling to have a house with a clean slate. But just because everything is new doesn't mean you should not take some safeguards. No matter how wonderful your builders are, there is no such thing as a perfect house. Don't let that worry you though! With a few simple steps, you can take care of any potential problems before they ever even come up.

The first thing to do is set up a clause in your contract that covers any issues that come up. There are some things that you cannot know before the home is lived in. Knowing whether the hot water heater can keep up with the demands your family put on it or making sure the home is adequately wired are examples of things you cannot know without living in your home. You want to make sure you have a clause that will cover these things.

Another way you can safeguard your investment is to get a home inspection. While most people may think paying a few hundred dollars for a home inspection is uncalled for in a new build, it is something that could help you know things are as they should be. An inspector can help you know things like the roof and beautiful new deck will stand the test of time. One of the great benefits of buying a new construction is the low maintenance costs! A home inspection will assure that you aren't in line for a premature repair.

Finally, don't forget the punch list!! The punch list is a list of problems that have to be fixed before you will close on the home. Most reliable builders will do this for you automatically. If you are unsure if there is a punch list, do not be afraid to ask. You should also request to do walk through with the builder. Some items are easy to fix. A popped nails or loose screw on the drywall are easy to fix. There may be larger things that need to be addressed, but that is the reason for the punch list. The builder can flag any concerns with red tape and have his workers go back to correct anything on the list. You can even ask for a second walk through after everything is completed.

Even with everything seemingly perfect, don't end your relationship with your builder! Just because you have closed on the house doesn't mean you should lose his number. Maintaining a relationship with your builder will help you address any issues that may come up over the next few years and no one knows your home inside and out like the person who built it! By taking these few steps you can have peace of mind as you move into your new happy home!

Whether it is a new home or a home with history we can help! Give Sandy's Team a call 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 have beautiful new construction available in Baton Rouge and Prairieville.

Few homebuyers today would consider buying a home without first having a home inspection completed. A home inspection should cover the major systems crawl space to the roof and everything in between. While most states require a disclosure of any known issues with the home, there may be something the seller is unaware of. Though the buyer has some favor in disclosure disputes, buyers are wise to protect themselves by having a professional inspection of the home completed.

One way to insure a thorough inspection is to find the best home inspector you can. A real estate agent can give you a few recommendations. You may ask recent buyers in your area who they used for a home inspection. Ask them if they were happy with the inspection or if there was anything that was not found in the inspection but was found later. There are two major home inspection industry trade associations who require members to meet a certain standard of care; the American Society of Home Inspectors (ASHI) and the National Association of Home Inspectors (NAHI). There are some states that have local trade associations as well. Again, you real estate agent will be able to help you know what certifications may be available in your area.

Remember, home inspectors aren't there to comment on cosmetic issues. It's the home inspector's job to point out things that may not seen by the average person walking through the home. It's important the buyers be there for the inspection. Depending on the age and size of the house, a home inspection can take several hours. Even if you cannot be there for the entire inspection, it is crucial you are there at the end. The inspector can walk through the property to point out his findings for you. A buyer should request the seller and their agent not be in the home during the inspection. You will also need to ask they provide easy access to the attic and crawl space and that the utilities be turned on. Most home inspectors aren't licensed to inspect for wood-destroying pests, so you may need to consider an additional inspection for pests.

If a problem is found, you have to take a few things into consideration before completing the purchase. What is the seriousness of the issue? How much it will cost to repair and how soon it needs to be done. You may have your inspector prioritize any issues by price and severity. Make sure to follow up the inspector's recommendation for any further inspections needed. Normally you will want to start the inspection process as soon after your offer has been accepted. A home inspection is not a step to skip on the road to home ownership!

Are you looking for a home to call your own? Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

Though I have never seen Active Rain used as a job board, I have a great opportunity available in my agency for sales team members so I thought I would give this a shot.

We are the #1 ReMax team in Louisiana. Located in Prairieville, LA, not too far from Baton Rouge, we serve East Baton Rouge Parish, Ascension Parish, and Livingston Parish. At the moment we have a large new construction inventory, plus a huge client base. We offer super earning potential with no expenses!

As you know, the housing market in our area is a bit different that elsewhere in the South. There are fewer foreclosures. We are still seeing demand for housing from people displaced by Hurricanes Katrina and Gustav. Of course, we believe that good agents can make it anywhere - but our market helps hard working agents prosper.

If you are interested, email resume to info@sandyco.com and then we can talk.