When the real estate bubble burst, neither lenders nor legislators had any idea of what the fallout was going to be.

The unfortunate truth is that millions of Americans lost their homes and millions more are facing foreclosure. There are options to keep this from happening, and I am well versed on the range of alternatives available.

As a Realtor who has been licenced since 1986, sold over 1300 homes and a distressed property expert I have been helping homeowners who are feeling the stress of an unaffordable mortgage. If you or anyone you care about is wondering where to turn and call me and my team. We have helped a ton of families through these tough times.

It is my mission to help homeowners facing tough circumstances, and I would truly appreciate your taking the time to refer any homeowners you know who could benefit from my help. I’m sure that they would appreciate it, too. The sooner they contact me, the more time we’ll have to develop a strategy to get them back on track to financial stability.

Call the office at 908-895-1898

Recent studies show us that people on the Internet do not read. According to social media website Mashable, users read 20 percent of a webpage before moving on. “We spend 15-20 seconds on a webpage before we move on. We are a global planet of fruit flies.”

There are plenty of buyers and sellers online looking for a reliable realtor to help them sell their home in a turbulent market or find that perfect house in an uncertain economy. How do we distinguish ourselves from the thousands of real estate professionals with an online presence?

The answer is social media. PR professional Steve Rubel suggests being “a source of knowledge” through social media. If your friends, followers, and readers know that you’re in-tune with the industry, then they’re more likely to turn to you when they need real estate advice. If your ‘fans’ see that you’re constantly updating your online presence with more information and content, they’ll be more likely to think of you when they decide to invest in a property. 

RE/MAX of New Jersey Associates get the chance to listen to social media expert Gary Vaynerchuk guide them through the steps to establishing an online presence and reaching a new audience. The Tech Rally on September 15th is exclusive to the RE/MAX of NJ Associates and features Vaynerchuk, real estate coach Tom Ferry and an afternoon session with Google. More information on this event is available at www.remax-nj.net/techrally. 

As of 2010, 90 percent of buyers and sellers were online while more are following in the same footsteps. We can’t afford not to be there for them.

 The customers have spoken!  I’m pleased to announce that buyers and sellers realize what we have always known, RE/MAX agents are the ones that consumers trust most when it comes to navigating a sometimes challenging real estate market. In the 2011 J.D. Power and Associates Home Buyer/Seller Study released Wednesday, buyers and sellers award RE/MAX the highest rankings in customer satisfaction. 

View the buyer survey results

View the seller survey results 

“I want to personally thank and congratulate every one of you for contributing to this prestigious recognition,” says RE/MAX Chairman and Co-Founder Dave Liniger. “It truly reflects your professional excellence, your enthusiasm for education, your commitment to distressed sellers, your individual drive, and many other qualities that serve the interests of your clients. Your efforts change lives, and those people have spoken.”

Obviously Dave Liniger is very proud of our associates and I am too.  Thank you to our RE/MAX agents for your hard work and dedication to the highest level of customer satisfaction.  As well, thank you to the hundreds of cooperating agents we do business with regularly.  Without the continued teamwork of all the great agents in the marketplace we could never continue to achieve all of our dreams, aspirations, and lofty goals.  Thank you!

 Is it a good time to refi????

Despite doom-and-gloom reporting, not every homeowner in the U.S. has negative equity right now. And with interest rates still hovering near record lows, those with equity are likely asking themselves whether it’s a good time to refinance. Well, is it? Let’s take a look:

• Average interest rates on 30-year fixed-rate mortgages fell to 4.51% a week ago (according to the Mortgage Bankers Association’s latest survey), the lowest level since last fall.
• The average outstanding home loan carries an interest rate of about 6% (Freddie Mac’s Chief Economist Frank Nothaft told The New York Times last week).

So if you took advantage of low rates last fall or in 2009, you probably won’t see much savings by refinancing now. But if you haven’t yet refinanced since 2008, you might want to check in and see what kind of savings refinancing might afford you.
 
Cashing out: What’s enough equity?
 
Refinancing used to almost always mean the owner was taking some cash out in the process. That’s because values had climbed pretty steadily (and steeply in many areas) for several years in a row – so most homeowners could afford to cash out to maybe send their kid to college, work on a new addition to the house or remodel. But today, the story is much different.
 
Even if you have equity, it may not have climbed enough for cashing out to make sense. In fact, the NYT reports that some owners are even putting cash in to up the equity on their homes.
 
So what’s enough equity by today’s standards? Times have changed and 20% is once again a magic number. Many lenders aren’t even going to allow you to cash out if it means dipping below that.
 
Refinance options for the equity starved
 
OK, but what if  you have less than that? Can you still refinance to take advantage of low rates?
 
The good news is that there are some programs out there that may make this possible. If you have little or no equity, you can ask your lender about the Home Affordable Refinance Program. If you have an FHA loan, you can check out FHA Streamline Finance, which may make sense for you.
 
So even if your equity is pretty low, there are options. Point is, with rates this low, it’s a good time to sit down and discuss whether refinancing would improve your loan situation. We all know that rates are fleeting and what’s here today may be gone tomorrow.

Sales of new U.S. homes fell in January 2011, almost completely retracing the strong gain seen in December, the Commerce Department recently estimated.

Sales dropped 12.6% last month to a seasonally adjusted annual rate of 284,000. Economists had been expecting a pace of 300,000.

For December, sales were up a revised 15.7% to a 325,000 level, compared with the previous estimate of a 17.5% rise to 329,000.

Economists had been leery of the initially reported surge, attributing much of December’s gain to home buyers who rushed to take advantage of a tax break in California that expired at the end of 2010.

The less volatile three-month average edged up to 297,000 from 295,000.

In the West, sales pulled back in January, falling 36.5% to 66,000 units after a 62.5% jump in December. Sales also fell 12.8% in the South to a record low 143,000. Analysts were expecting weak sales in the region due to several severe winter storms during the month. Those declines were partially offset by a 54.5% rise in the Northeast and a 17.1% gain in the Midwest.

Compared with January 2010, last month’s sales were down 18.6%. Economists say new-home sales have remained in a relatively narrow range for months. Activity is expected to pick up this spring, but economists see no early hints of a pickup in activity.

In January, the number of unsold new homes on the market slipped 0.5% to 188,000, the fewest since December 1967. That represented a 7.9-month supply at the January sales pace, up from 7.0 in December.

The inventory of completed-but-unsold homes fell to 78,000, down about 21.2% in the past year.

The median sales price of $230,600 in January was up 5.7% compared with a year earlier.

New-home sales are reported when a contract is signed, not at the closing of the sale.

The government cautions that its housing data are subject to large sampling and other statistical errors. Large revisions are common.

The National Association of REALTORS® recently reported that sales of existing U.S. homes rose a seasonally adjusted 2.7% in January, the fifth rise in six months, as buyers snapped up cheaper homes.

In a separate report, the government said orders for durable goods rose 2.7% in January, largely as a result of an increase in orders for civilian aircraft. In addition, initial claims for state unemployment insurance fell 22,000 to 391,000 in the latest week.

(c) 2011, MarketWatch.com Inc.

Existing-home sales rose sharply in December 2010, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS.

 Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating.  The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

Credit Blemishes

When life unexpectedly takes a turn for the worst, it’s not always possible to come out without a few bumps and bruises.  Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come.  Whether it’s from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life.  The good news is that they no longer have to prevent you from becoming a homeowner.

Give Yourself A Little Credit

After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account.  This can be accomplished by applying for a credit card and maintaining a responsible use of the account.  If you aren’t approved for an unsecured card, you can always apply for a secured credit card.  Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that – in the past.

Clean Up Your Credit Report

Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies.  Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion.  If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness.  In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

Save Up For A Down Payment 

Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home.  A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan.  If you have past credit problems, check with your lender about specific down payment requirements and start saving!

Creative Financing Options

If you’ve exhausted all of your conventional efforts and are still turning up empty, don’t give up just yet.  Alternative financing is an option that many homebuyers use to purchase a home.  Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

10 Ways to Make a Small Room Look Larger

Most people have one: that room in the house that they wish was just a little larger. What many don’t realize is that with a little work and some TLC, they could have exactly what they’re looking for.

Here, Lowe’s offers 10 designer tricks to help you make any room look larger:

1. For the illusion of a larger room, use a color scheme that is light rather than bright or dark. Pastels, neutrals and white are all color possibilities.

2. Use a monochromatic color scheme on the furniture, rugs and walls. Select different shades and textures of your single color.

3. Lighting is a key element in opening up a space. Recessed spot lighting is visually appealing and is perfect for a small space. A torchiere light is great for bouncing light off of the ceiling and back down on the room.Skylights and solar tubes are natural alternatives for adding light to a room.

4. Limit the number of accessories to avoid the cluttered feeling.

5. The floor and the ceiling are the fifth and sixth walls of every room. A light-colored flooring such as light oak or a light-colored carpet will make the room appear brighter and more open. The same applies to the ceiling—use a light color or white to “open up” the space above.

6. Increase the appearance of the size of the room by adding wall mirrors. They not only reflect images, they reflect light and color. Be a little daring! Use mirror tiles to mirror an entire wall. Your room will appear to double in size.

7. Don’t place too many pieces of furniture in a small space. A love seat may work better than a full-size sofa depending on the size and shape of the room. Add two medium-sized chairs or two small wood chairs. Place the chairs closer to the wall and then pull them into the area when additional seating is needed.

8. Add paintings or prints to the walls. One large painting works better than a group of small paintings.

9. The visual balance of a room is also important. A large, brightly colored element can overwhelm a room and decrease the appearance of space.

10. A glass table, whether it is a dining, coffee or end table, will keep the appearance of an open and free space.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the October edition of the Obama Administration’s Housing Scorecard. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market. “Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place—such as additional assistance on refinancing and helping unemployed homeowners stay in their homes—and ensuring that help is available to homeowners as soon as possible.” “HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis,” said acting Assistant Secretary for Financial Stability Tim Massad. “Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.” The October Housing Scorecard features key data on the health of the housing market including: -Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April 2009, record low interest rates have helped more than 7.1 million homeowners refinance, resulting in more stable home prices and $12.7 billion in total borrower savings. -As expected with the expiration of the Home Buyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter. -More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010—nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million). -At nine months, almost 90% of homeowners remain in their permanent HAMP modification, with 11% defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16% of permanent modifications are 60+ days delinquent. Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Here we are going into the 1st week of October and I am still being asked the same question over and over since the beginning of summer… Is now a good time to buy????

 Is now a good time to buy? Yes, even if prices continue to drop! And here is why…. I know in some markets prices are still dropping slightly (although they have gone up slightly during the last 2 months) but is it a good time to buy? The answer is a resounding yes!!! I  stated this in one of my posts over the summer, if you bought a $200,000 dollar home (and for the purpose of illustration obtained a $200,00 loan), and the housing drops 10% in the next year the math is easy, you just lost $20,000. BUT- and this is a big BUT- if you obtained a loan today for the house at 4.25% and if that same loan in one year costs 6% then the difference in payment is a lot less if you buy the house now! ($200k @ 4.25% = $984 payment vs $200k @ 6.0% = $1,199) for a difference of $215 every month. Over 30 years that difference is a whopping $77,400!!! One thing we have been assured of is that interest rates have to and eventually will be going up as the economy improves. Also every time the interest rate goes up 1 point that lowers your spending power by 9%. So if today you were looking to buy a $200,000 home but waited and the interest rate was now at 6% your spending power would be lowered 15.5% so you would be buying a $169,000 home. In most markets that’s a big difference in homes.

 Did I mess up by missing the Obama tax credit???

 At the end of April (when the tax credit expired) the interest rate was hovering around 6% so as state above and before you would be spending $77,500 more if you bought a house on April 30th vs today.

 Despite what you read and hear, homes ARE selling. Our company has been having a stellar year selling lots of homes for our sellers and finding quality homes at good prices for our buyers. We also have become experts at distressed sales (short sales) and we even have a few bank owned home (REOs). So if you are looking to buy or sell and move up…this is a good time!