Archwood Properties

 For homeowners that have a FHA-insured mortgage loan, they can now rely on a loss mitigation assistance before they get too far in the hole on their mortgage payments.  Before, this was only an option for those who had already missed payments and not as a preventative measure.  Effective immediately, the loss mitigation options of forbearance and FHA’s Home Affordable Modification Program (FHA-HAMP) may be used to assist borrowers facing imminent default.-FHA defines an “FHA borrower facing imminent default” to be an FHA borrower who is current or less than 30 days past due on the mortgage obligation and is experiencing a significant reduction in income or some other hardship that will prevent him or her from making the next required payment on the mortgage during the month that it is due.

-A forbearance agreement is an agreement by the loan servicer to postpone, reduce or suspend payments due on a loan for a limited and specific time period.

-FHA-HAMP allows qualified FHA-insured borrowers to reduce their monthly mortgage payment to an affordable level by permanently reducing the payment through the use of a partial claim combined with a loan modification. The partial claim defers the repayment of a portion of the mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off. The remaining balance is then modified through re-amortization and in some cases, an interest rate reduction.

The borrower must be able to document the cause of the imminent default which may include, but is not limited to, one or more of the following types of hardship:

1. A reduction in or loss of income that was supporting the mortgage loan, e.g., unemployment, reduced job hours, reduced pay, or a decline in self-employed business earnings. A scheduled temporary shutdown of the employer, (such as for a scheduled vacation), would not in and by itself be adequate to support an imminent default.

2. A change in household financial circumstances, e.g., death in family, serious or chronic illness, permanent or short-term disability.

Loan servicers must document the basis for its determination that a payment default is imminent and retain all documentation used to reach its conclusion. The servicer’s documentation must also include information on the borrower’s financial condition.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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With efforts to cut back on gas and heating expenses, consumers are not opting for a solar-paneled method of heating their water and homes.  Just take a couple of panels that resemble skylights, a large water storage tank and some sunlight and voila…. hot water!!!  Contrary to popular belief, you don’t necessarily have to live in an extremely warm climate or empty your retirement account just to get one of these systems.  Typically, this is can cost anywhere from $2,000 to $10,000 but will come with awesome tax incentives as well as immediate rebates offered by some states.  Gwendolyn Bounds from the Wall Street Journal breaks it down and gives us the 4.1.1.  on this highly-efficient and cost-effective system. Will it work at my house?
As a rule of thumb, you need a portion of southern-facing roof or other spot on the property with minimal shading from 11 a.m. to 3 p.m. Two to three collectors (i.e. panels) typically suffice for most single-family homes. Your installer should use a tool, such as the Solar Pathfinder, to measure the amount of daily energy your collectors will get from the sun year-round.

Where can I learn about different types of systems?
Depending on your climate and home, there are multiple designs of solar hot water systems ranging in cost from about $2,000 to $10,000. A basic description of each can be found at the U.S. Department of Energy’s Web site.

Are there financial incentives to help cover costs?
Most systems can qualify for a 30% federal tax credit, so long as the collectors are certified for performance and durability by the not-for-profit Solar Rating and Certification Corp. There also are state tax and rebate incentives, which may have additional requirements. Check the Database of State Incentives for Renewables & Efficiency at dsireusa.org.

What about warranties?
While it varies, most well-established manufacturers warranty panels and other components from defects for a minimum of five years to 10 years, and water tanks for at least six, with some caveats. Your installers should warranty their work too. As a rule of thumb, a solar hot water system is designed to last for around 25 to 30 years.

Does it matter what kind of hot water storage tank I use?
Ideally, your tank(s) will be as well-insulated as possible to retain heat. Look for “standby-loss” figures from manufacturers to compare. A stainless steel tank lasts longer but is pricier than the more commonly-used glass or enamel-coated steel tanks. Homepower.com offers good comparisons of tanks and other information. In most climates, you’ll need a backup heat source connected to your tank – such as your existing furnace, a second tank or a separate on-demand water heater.

What about aesthetics?
There are a few types of collector designs, such as panels or tubes. Each have their pros and cons. Cosmetically, some people prefer panels for rooftop applications because if well-installed they can resemble skylights. Make sure installers have a plan to inconspicuously route piping from collectors to your hot water tank. An attic can keep them hidden, but attic-less vaulted-ceiling architecture may make it trickier. I’ve seen gruesome layouts where fat tubes snake across roofs and down exterior walls. My team drilled lines through a roof overhang, tucked them alongside the house and then boxed them in with wood to match the home’s exterior.

How do I find a qualified installer?
At minimum, seek licensed, insured contractors who warranty their work and have training certification from the manufacturers they rep. Ask how many systems they’ve installed and for references. It can help to hire locally for future maintenance needs. A directory of installers can be found at seia.org and at findsolar.com run by the American Solar Energy Society. The North American Board of Certified Energy Practitioners also provides list of installers certified by its standards.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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 A Centex Home subdivision, Rivermist,  has plenty of residents up in arms and in search of an explanation why the soil has suddently shifted underneath their newly-built homes.  Some have experienced small cracks in their walls, others have 10-foot sections missing from their retaining walls and most were ordered to a mandated evacuation over the weekend.  With the majority of them allowed back in their homes as of Monday, some are quite hesitant to return until Centex provides some answers.   While Centex is paying for residents to seek shelter in area hotels, they are also involved in an extensive investigation as to why this might have occured.  However, they are fairly confident that it is isolated to only a small area of San Antonio — try explaining that to your homeowners!

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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Green-living features are taking over the International Builders’ Show, but not all are newcomers to the market.  Several of the products featured are veterans of such a show and are shown consistently in show homes, but have yet to really catch on to the consumer market.  

Spray foam insulation: For six decades, spray foam insulation has been available to contractors, touted as a lightweight, airtight and highly effective insulation and sound-insulator that fills small gaps better than loose fiberglass fill or batts. However, only about 1% of all attic re-insulation jobs use the material. Though foam is a better insulator than fiberglass, it’s also three times more expensive (although in some cases it does eliminate the need for a vapor barrier), and its composition is controversial. Nevertheless, spray foam is expected to become more popular as more consumers demand greater energy efficiency in a shaky economy, spurred on by federal tax breaks on energy-efficient construction and remodeling.

Solar shingles: Introduced in 2005, solar shingles were meant to be a more aesthetic, less weighty alternative to solar panels. Integrated into a square of regular asphalt shingles, rather than floating on top of the roof like a panel, the shingles were much easier to replace than traditional panels. But they were also far less efficient, and able to convert 10% of the sun’s energy to power. So a homeowner would need more than a decade to recoup his initial investment, limiting the product’s appeal. However, technology is rapidly improving. The latest generation of solar shingles uses thin-film cells that produce more power and can be installed in less time than earlier versions, which could make them more popular.

Insulated Concrete Forms: ICFs were introduced about 20 years ago, and almost always get attention at trade shows.  The technique is simple–stack thick blocks of Styrofoam forms Lego-style, and fill the cavities with rebar and concrete. The system creates walls with R-25 insulation; siding is applied directly to the exterior, and the need for framing is eliminated. The solid walls can withstand the winds from hurricanes and even tornadoes. But according to the Insulating Concrete Form Association, it costs between $1 and $4 per square foot more to build with ICFs compared to regular wood-frame homes. So ICFs are usually found in custom rather than production homes. New technology is boosting the walls’ energy efficiency without adding thickness.   

Structural Insulated Panels: SIPs are another alternative wall system–they’re essentially an insulation sandwich, a filling of foam or a material like wheat straw with two layers of sheet metal or oriented strand-board as the bread. They’re strong enough to replace studs and joists, and they create supertight, energy-efficient buildings without other insulation and vapor barriers. Although they’ve been around since the 1930s, they still have only a little more than 1% of market share, largely because builders are hesitant to adopt technology that would require a radical retraining subcontractors and redrawing designs.  However,  tighter energy standards now being considered in Congress may force builders to reconsider them. 

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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Thanks to RISMedia and Generation Mortgage Company we can set you straight on some common misbeliefs about reverse mortgages.  A reverse mortgage enables older homeowners (62+) to convert part of the equity in their homes into tax-free cash without having to sell the home, give up the title or take on a new monthly mortgage payment.  In this case, the stream of payment is reveresed and instead of making monthly payments to a lender, seniors are now receiving monthly payments from the lender.     

Myth: If I take out a reverse mortgage the lender will own my home.
Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the house is maintained and property taxes and homeowners insurance are paid, the loan cannot be called due.

Myth: My children will be responsible for the repayment of the loan.
Fact: False. Reverse mortgages are non-recourse loans. That means, if the property is sold to pay-off the loan when the homeowner passes away or decides to leave the home for other reasons, there will be no mortgage debt for the family and heirs to repay. The maximum amount owed is the current market value of the house. If the homeowner’s heirs want to keep the home, they would pay the balance in-full to the reverse mortgage lender.

Myth: I can’t get a reverse mortgage if I have an existing mortgage.
Fact: False. With enough equity, you may be able to pay off your existing mortgage or other debt with the reverse mortgage. The reverse mortgage must be in a first lien position, so any existing mortgage must be paid off. Seniors who take out reverse mortgages are free to do anything they want with their reverse mortgage proceeds. Paying off an existing mortgage is the number one reason most seniors take out a reverse mortgage.

Myth: Only low-income seniors get reverse mortgages.
Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

Myth: If I outlive my life expectancy, the lender will evict me.
Fact: False. Reverse mortgage lenders put no time limit on how long seniors can stay in their homes. Since homeowners still own the property, lenders cannot evict them, provided they follow the program guidelines.

Myth: There are no objective advisors available to seniors trying to decide if a reverse mortgage suits their needs.
Fact: False. Borrowers are required to work with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities. This educational session helps them make the right decision for their unique situations.

Myth: There are restrictions on how reverse mortgage proceeds may be used.
Fact: False. There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve.

Myth: Reverse mortgage lenders take advantage of seniors.
Fact: False. Seniors who have been victims of reverse mortgage lending schemes are extreme exceptions and typically victims of unsavory lenders. As a consumer, you should only work with lenders who are Better Business Bureau and National Reverse Mortgage Lenders Association (NRMLA) members and adhere to those organizations’ strict Code of Ethics and Standards for Trust.

Myth: I’ve heard I won’t qualify for a reverse mortgage because of my limited income.
Fact: Unlike a traditional mortgage where mortgage payments must be made each month, a reverse mortgage pays you. Because of this, many seniors who do not qualify for traditional financing are eligible for a reverse mortgage. 

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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 The IRS has released a new form that home-buyers eligible for the tax credit need to fill out and the processing will begin as early mid-February, in addition to releasing new documentation requirements in order to reduce tax credit fraud.   For those claiming the first-time home buyer tax credit on their 2009 tax return, they will need to use Form 5405 and manually file a paper tax return.  Form 5405 isn’t the only document you’ll need to provide the government though, as you will also need to include one of the following in order to receive the credit:

• A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
• For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
• For a newly-constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

If you are not a first-time home buyer but are eligible for the tax credit available to those who are purchasing a new principle residence after a minimum of 5 consecutive years in the current property, you will also need to attach documentation covering the five-year period in which you have lived in your home:

• Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
• Property tax records or
• Homeowner’s insurance records.

Due to the additional documentation required and system checks for fraud prevention, filing for this tax credit make tack on two to three additional weeks before you receive your refund.  For those who file early, the IRS expects to have returns completed by March.  To ensure a speedy turn around on your refund, they recommend filing for direct deposit rather than waiting on a paper check. 

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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Often times, sellers will bend the truth a little bit, or even a whole lot, in order to unload their property on new, unsuspecting buyers.  Fortunately, the government does have regulations in place that require sellers to disclose pertinent information about their property — but many times, there are issues that fall through the cracks. 

 It’s important for buyers to do their own due diligence on a property, because the home may be misrepresented in terms of lot size, quality and safeness of neighborhood, pest-free, flood-free zone, or little and cost-effective maintenance when there is a problem. 

 It is recommended that you do your own research by asking the seller to see a C.L.U.E. report (Comprehensive Loss Underwriting Exchange)  for that property.  It can be found at www.choicetrust.com.  A Home Seller’s Disclosure report lists claims for property losses, such as fire damage, from the last 5 years as reported by insurance companies,  can tell you about problems that might affect the availability or price of homeowners insurance, including claims for fire or hail damage.  Homeowners can obtain a free annual personal property report, which lists a 7-year history of losses associated with both the property and the individual seller, under the federal fair credit act. If there have been any claims made in the last 7 years, it will be indicated on the report.

 Don’t always trust what sellers tell you about how great their property is, and make the extra effort to really know what the house is about.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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Thanks to the new standards in the Good Faith Estimate program that was released this month, it’s easier to shop around and find the best offer on a home mortgage loan.  

 As long as you’re offering accurate information that is required to efficiently and accurately project loan figures, it should be very easy to compare apples to apples.  It’s very important to be honest with yourself and your financial abilities, because the last thing you want to do is to take on a mortgage that will cause distress to your budget. 

Equally important is comparing the exact terms, rather than a 30-year fixed at one bank versus a 15-year fixed at another bank.  Put lenders on an even playing field to see how they match up.  A big hint is to compare different lenders on the same day, since interest rates can change by the day.  If you look at Bank A on one day and Bank B on the following day is higher — go back and check Bank A again to see how it compares that same day.   

Interest rates aren’t the only thing you need to be conscious of.  An offer for the lowest interest rate doesn’t necessarily mean it’s the best deal for you.  Be sure to compare the fees associated with the processing and servicing of the loan.  A very helpful tool allows you to compare up to four loans at a time to configure total cost, rather than just rate-to-rate or fee-to-fee.  Click here on the Good Faith Estimate website to access this tool.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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 10 cheap solutions to upping the ante when putting your home on the market.

1. Retouch the front shell.  If the house has bad curb appeal, nobody is going to care to wander inside and look at your brand new kitchen.

2. Trim the greenery.  Don’t let the overgrowth hide the aesthetic appeal of the house.

3. Repaint interior walls.  Everyone appreciates a fresh coat of paint, and going with a neutral color is your best bet at appealing to a variety of buyers.

4. Improve the floors.  You don’t necessarily have to replace the hardwoods and carpet, but make sure the wood is buffed and the carpet is cleaned before showing to potential buyers.

5. Put appliances under warranty.  This will give the buyer more confidence in their purchase and will likely cause less negotiation.

6. Do what you can to make your home more energy efficient.  If new insulation and windows is going to keep a buyer’s electric costs down, they’re going to be really impressed with your property. 

7. New light fixtures.  You don’t have to go extravagant, just aim for updated fixtures.  If you still have the old brass fixtures, toss them and go for a more modern look.

8. Make all major repairs.  The last thing buyers want to do after the long process of buying a home is having to dedicate even more time and money to fixing a major problem in the house.  Fix it before you put it in the market and up the sales price to contribute to a portion of the cost. 

9. New stove. Skip the full-kitchen renovation and update this key appliance.  Most buyers will notice the updated model and will be appreciative of your {small} investment.

10. Freshen up the bathrooms. If the caulk is old and moldy, take a razor blade to remove it and re-caulk with fresh bright caulk.  There is little that is less-appealing than mildew stains.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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1. Buy a home!  Contract must be in place by the end of April and the deal must be closed by the end of June.

2. Watch out for Making Work Pay  complications!

3. Convert a Traditional IRA to a Roth IRA.  Beginning this year, everyone is able to convert their funds to a Roth account.  Before, it was only those who made under $100,000 annually.

4.  Improve your home’s energy efficiency and rack up on tax breaks for doing so.  You can claim up to $1,500 in improvements.

5. Go hybrid.  It’ll save you gas money and earn you a hybrid credit.

6. RMD’s are back!  Last year, you didn’t have to take taxes out of a retirement acount at a certain age without being penalized.  This year, the law requires you to start taking money out at age 70.5.

 7. Income taxes may be on the rise. Some of Bush’s tax cuts are about to expire and the wealthy will be seeing higher taxes sooner rather than later.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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