House Talk from the Heart - Christine Schlittenhart

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					        House Talk from the Heart
Issue 56            News from Christine Schlittenhart, Your Agent with Heart                      September 2012

                Heart to Heart                                     MAY WE NEVER FORGET
School is back in session and the hint of Fall is in the       The September 11 attacks were a series of four
air. Time is flying by at rapid speed. My youngest son,        suicide attacks that were committed in the United
Corey, is a Senior in high school and my daughter and          States on September 11, 2001, coordinated to strike
son-in-law are celebrating their 1 year wedding                the areas of New York City and Washington, D.C. On
anniversary on September 3rd. How can both of these            that Tuesday morning, 19 terrorists from the Islamist
milestones be true?? I can’t stop time, so I better just sit   militant group al-Qaeda hijacked four passenger jets.
back and enjoy it!                                             The hijackers intentionally piloted two of those
                                                               planes, American Airlines Flight 11 and United
Our real estate market is going through exciting               Airlines Flight 175, into the North and South towers
changes. Houses are selling quicker and for slightly           of the World Trade Center complex in New York
higher prices than last year. Homes priced under $200k         City; both towers collapsed within two hours. The
are going pending within days of listing, receiving            hijackers also intentionally crashed American
multiple offers and in several cases, selling above            Airlines Flight 77 into the Pentagon in Arlington,
listing price and even above appraised values. It’s a          Virginia, and intended to pilot the fourth hijacked
frenzy out there! Homes around and under $300k are             jet, United Airlines Flight 93, into the United States
also experiencing the same exciting results. We have           Capitol Building in Washington, D.C.; however, the
limited inventory – so Seller’s - WE NEED YOU! We              plane crashed into a field near Shanksville,
are experiencing a unique Seller’s Market and Buyer’s          Pennsylvania after its passengers attempted to take
Market at the same time. Call me today to let me help          control of the jet from the hijackers. Nearly 3,000
you with your real estate dreams and goals. If you             people died in the attacks, including the 246 civilians
don’t need assistance, please remember to refer me to          and 19 hijackers aboard the four planes, none of
your friends and family. Thank You for Your Trust!!            whom survived.

             Proverb of the Month                              Cleanup of the World Trade Center site was
                                                               completed in May 2002, and the Pentagon was
“A simple man believes anything, but a prudent                 repaired within a year. Numerous memorials were
      man gives thought to his steps.”                         constructed, including the National September 11
                                                               Memorial & Museum in New York, the Pentagon
              Proverbs 14:15                                   Memorial, and the Flight 93 National Memorial in
                                                               Pennsylvania. After a lengthy delay, the 1,776-foot-
                                                               tall One World Trade Center is expected to be
INSIDE THIS ISSUE                                              completed at ground zero in New York by 2013.
      Lender Report – Now is the Time to Refinance

      Half of Homeowners Under 40 are Underwater

      Shadow Inventory-It’s Not As Scary As It Looks

      Clients of the Month / Merchant of the Month

      Recipe of the Month – Mama’s Mac n Cheese

   Cell: 530-906-9738 Off: 530-878-5100
                                        News From the Heart – September 2012
Refinancing your mortgage can help you to achieve the following:
    •   Take advantage of lower interest rates that will lessen your monthly mortgage payments.
    •   Decrease the length of your mortgage to pay it off faster and save on interest charges.
    •   Increase the length of your mortgage and spread out the costs for lower monthly charges.
    •   Change the terms of your mortgage from an adjustable rate mortgage to a fixed-rate mortgage or vice versa.
    •   Refinance for a higher loan amount and get quick funds for home renovations, college tuition, medical costs,
        or other expenses.

How do I know if I am eligible for a refinance?
Just because you were able to get a mortgage in the past, it isn’t a given that you’ll automatically be eligible for a
refinance. First of all, you need to qualify for the new mortgage in much the same way that you originally qualified.
For that, the lender will consider your income, assets, debts, value of the property, and the amount you want to
borrow. After all of that, you’ll have to see if you actually qualify for the lower rate, which will make or break the
whole refinance.

One situation that prevents many people from refinancing is owning a house that is “underwater” or has fallen in
value and is not worth as much as the homeowner owes on the mortgage. In this situation, many lenders will not
agree to a refinance.

HARP (the federal Home Affordable Refinance Program):
HARP is the Home Affordable Refinance Program; part of the government’s Making Home Affordable Program for
at-risk homeowners. It’s designed for homeowners who are current on their mortgage payments but haven’t been
able to refinance to a lower interest rate because they owe too much on their mortgage. In many cases, they are said
to be underwater on their mortgage – owe more than the property is worth.

First of all, you have to have a mortgage backed by Fannie Mae or Freddie Mac. You also have to be current on your
mortgage payments - no more than one late payment over the past year and none in the last six months. Your
mortgage must have been acquired by Fannie or Freddie prior to May 31, 2009 and must not have been previously
refinanced through HARP (standard refinances are ok).

HARP is not strictly limited to underwater mortgages. In fact, many of the home loans refinanced under HARP have
been mortgages where borrowers had some equity, but not enough to qualify for a conventional refinance. HARP
refinances are allowed on mortgages with a greater than 80 percent loan-to-value ratio.

Easy Refinance for FHA, VA Loans:
It’s actually quite easy to refinance if you’re
underwater on your mortgage if the loan is
backed by the FHA or VA. Both of these offer                         CELEBRATION CORNER!
                                                                        Happy Birthday Wishes To:
what are known as “streamlined” refinancing
                                                                             Steve Hillebert (1)
on mortgages that enable you to be approved                                   Gail Pittner (13)
for a refinance almost automatically, provided                             Evelyn Hillebert (24)
that you’ve kept up with your mortgage payments.                            Stephanie Lodge (28)
                                                                           Lavonna Douglas (29)
                                                                       Happy Closing Anniversary To:
                                                                           Vera Beekley (9-10-07)
                                                                          Kimberly Gale (9-15-10)
                                                                           Carol Harris (9-21-06)
                                                                      Happy Wedding Anniversary To:
                                                                      Dennis & Kathy Duesing (9-02-67)

                                      News From the Heart – September 2012
  HALF OF HOMEOWNERS UNDER                                        SHADOW INVENTORY:
      40 ARE UNDERWATER                                      IT’S NOT AS SCARY AS IT LOOKS
                                                             The housing market is improving because there are
The country’s underwater homes are slowly resurfacing        more buyers chasing fewer homes. Skeptics of a
as the housing market improves. But younger borrowers        housing bottom, however, often point to a scary set
are still more likely to be submerged. Overall levels of     of numbers: the “shadow inventory” of potential
negative equity improved in the second quarter of the        foreclosures—the millions of mortgages that are
year compared with the first quarter, as home values         either in foreclosure or in default.
continue to rise. But about half of borrowers under the
age of 40 still owe more than their homes are worth.         It’s true that home prices are unlikely to see brisk
                                                             gains once they do hit bottom because it will take
Younger borrowers are more likely to be affected by          years to absorb this glut. But will this phantom
negative equity in part because they generally have been     inventory derail the incipient housing bottom?
in their home for shorter periods of time and had less       Maybe not, say a number of housing analysts.
time to build equity before the housing debacle. But on
the bright side, younger borrowers tend to be in             There are several reasons why the shadow inventory
relatively “shallow” water compared to older borrowers       isn’t as scary as it sounds: It’s concentrated in a
and are less likely to be delinquent on payments. The        handful of markets—it isn’t inherently a national
disproportionate impact on younger borrowers may             phenomenon. It is being offset by improved demand,
actually have a helpful effect on home values, by creating   particularly from investors. And the housing vacancy
tight inventory of homes for sale. Younger borrowers         rate is low, a product of very little new home
trapped by negative equity tend to be reluctant to sell,     construction over the past few years that could
even though their homes are often the most attractive to     counterbalance continued high inventories of
first-time buyers who might be ready to plunge into the      foreclosed homes.
market. Research is showing that these sellers don’t want
to sell, even if buyers want to buy. When they do sell,      While the shadow is very large, one often-overlooked
prices are higher — which helps push values up. The          fact is that the shadow isn’t nearly as large as it was
process is actually moving the market toward recovery,       two years ago. There are a wide range of estimates of
but it’s a gradual process. Over all, the second-quarter     shadow inventory. A common measure are loans that
report is positive. The housing market is healing, albeit    are either in the foreclosure process or that are three
slowly.                                                      months or more delinquent. These are mortgages that
                                                             are among the most likely to ultimately become
Are you an under-forty something with negative equity        bank-owned properties.
in your home? What will it take to get you to sell? Call
me today so we can discuss your options. ☺                   Barclays Capital estimates that at the end of May
                                                             there were around 1.8 million mortgages in the
       CLIENTS OF THE MONTH                                  foreclosure process and another 1.45 million where
                                                             borrowers have missed at least three payments. That
                                                             puts the total number of properties that could be
                                                             repossessed and resold by banks at around 3.25
                                                             million mortgages.             (Wall Street Journal)

                                                             MERCHANT OF THE MONTHis
                                                             “The concept of a huge shadow inventory
                                                             preposterous,” says Christopher Thornberg, a
1734                                                         housing economist with Beacon Economics in Los
                                                             Angeles. “The number of mortgages in distress is
                                                             way down from one year ago. It’s clear there are
                                                             fewer distressed properties out there.” Housing
                                                             analyst Ivy Zelman has a slightly larger estimate of
                                                             shadow inventory—around 6.3 million homes at the
Mark & Lavonna Douglas walked into my office 5 years
                                                             end of last year—that includes more newly
ago looking for a specific type of property. Their
                                                             delinquent mortgages and potential re-defaults. She
patience paid off as they are now the new owners of an
incredible home with forever views on top of a hill in       says that in a normal market, there’s a comparable
Auburn. I love the job of helping dreams come true!          shadow inventory of 2.9 million homes. So the key
                                                             figure—the excess level above the historical trend—is
                                      News From the Heart – September 2012
                 RECIPE OF THE MONTH
2 cups of shredded mild cheddar
2 cups of shredded Colby/Jack blend
Small box of Velvetta cheese, sliced or cubed
1 box (16 oz) of elbow macaroni or noodle of choice
4 eggs
3 cups whole milk
1 cup heavy cream
½ stick of butter, melted
Salt & pepper to taste

Preheat oven to 350 and spray 13x9 glass pan with non-stick spray. Boil noodles as per
directions on box until just undercooked. Quick rinse, shake, drain & put to the side. Mix
eggs, milk, cream & salt & pepper; whisk until well blended. Pour ½ of milk mixture in
bottom of the pan. In a separate bowl, combine shredded cheeses and noodles. Mix well and
pour into dish. Add sliced Velvetta slices on top of macaroni mixture. Pour the remaining
milk mixture on top of Velvetta. Poke holes so milk mixture can get all the way through.
Melt butter and pour over mixture. Sprinkle salt & pepper to taste. Cover lightly with foil &
bake in oven for 45 minutes. Remove foil & cook 5-10 minutes more until golden. Let stand
for at least 10-15 minutes before serving.

             Real Estate Consultant
             16898 Placer Hills Road
             Meadow Vista, CA 95722
             Cell: 530-906-9738

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                              News From the Heart – September 2012

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