In either case, HAFA offers benefits that make the transition as favorable as possible:

• You can get free advice from a HUD-approved housing counselor and licensed real estate professional
• Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
• In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
• HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
• When you close, HAFA provides $3,000 in relocation assistance.

You may be eligible for HAFA if you meet all of the following criteria:

• You live in the home or have lived there within the last 12 months
• You have a documented financial hardship
• You have not purchased a new house within the last 12 months
• Your first mortgage is less than $729,750
• You obtained your mortgage on or before January 1, 2009
• You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

HAFA is available for mortgages that are owed or guaranteed by Fannie Mae or Freddie Mac or serviced by over 100 HAMP participating mortgage servicers.

The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions you may have. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed?

The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.

3. Are you specifically experienced in residential inspection?

Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection. If the inspection is for a commercial property, then this should be asked about as well.

4. Do you offer to do repairs or improvements based on the inspection?

Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

5. How long will the inspection take?

The average on-site inspection time for a single inspector is two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.

6. How much will it cost?

Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $300-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. HUD Does not regulate home inspection fees.

7. What type of inspection report do you provide and how long will it take to receive the report?

Ask to see samples and determine whether or not you can understand the inspector’s reporting style and if the time parameters fulfill your needs. Most inspectors provide their full report within 24 hours of the inspection.

8. Will I be able to attend the inspection?

This is a valuable educational opportunity, and an inspector’s refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.

9. Do you maintain membership in a professional home inspector association?

There are many state and national associations for home inspectors. Request to see their membership ID, and perform whatever due diligence you deem appropriate.

10. Do you participate in continuing education programs to keep your expertise up to date?

One can never know it all, and the inspector’s commitment to continuing education is a good measure of his or her professionalism and service to the consumer. This is especially important in cases where the home is much older or includes unique elements requiring additional or updated training.

With so many agent out there, how can you make an intelligent decision? Do you choose a friend, neighbor or coworker? Should you work with an agent at a large firm, a small firm, a franchise or an independent?

While there’s an exception to every rule, and every marketplace has its own nuances, here are some solid rules to apply when you want the best representation to protect your interests.

Demand Experience

The real estate profession is plagued by high turnover. This creates a workforce that is made up of many newcomers. While there are brand new agents with good intentions, why trust one of the largest investment you’ll ever buy or sell to someone without experience?

Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate.

Look for Committment

Another problem we have in the industry is a large number of part time and recreational salespeople. These folks have either retired from some other career, work in real estate seasonally or are earning a second income for the family and honestly don’t need to work full time.

No matter how long they have been in real estate, their lack of full-time commitment makes it impossible for them to keep up with the vast changes in law, marketing and business practices that are occurring in the profession today.

If an agent isn’t working at least thirty hours a week, fifty weeks a year, look for someone else.

Consider Education

In the majority of states, the requirements for real estate licensing are substantially less than those for cutting hair. In Michigan, for example, all that is required is a forty-hour class and a multiple choice test. You cannot rely on licensing to indicate competence. And, unfortunately, many agent’s real estate education ends with their pre-license education.

While there are numerous advanced real estate education courses available, the only technical and competence based program available nationwide is the Graduate, REALTORS® Institute (GRI) series, which is administered under the direction of the National Association of REALTORS®.

A REALTOR® who completes the fifteen eight-hour modules, and passes examinations, may then use the designation of GRI. While only 15%-20% of agents have earned this accreditation, it should not be too difficult finding a GRI in your marketplace as they will commonly print the designation behind their name in advertising as well as on letterhead and business cards.

Conduct Interviews

Before you hire an agent to help you buy or sell a home, you should interview at least three agents in person. In order to do this, first get recommendations from friends, family and neighbors. Then look on the web, in homes magazines and the local newspaper to see what kind of marketing the various companies are doing in your area and call a few that impress you.

Then make brief fact-finding calls to determine which of the agents on your list are full time, experienced and either hold the GRI designation or are at least working aggressively toward it. You will probably need to call ten to fifteen agents in order to find three that are worth interviewing.

The interview itself need not be a formal one. It is simply an opportunity for you to meet the candidate and explain your needs; and to determine whether you would be comfortable working with them. Ask whatever questions you like, or simply explain your goals and listen carefully to what they propose to do for you in meeting your needs.

The Decision

If you follow the suggestions above, you will find that there are excellent agents working for firms both large and small; both franchised and independent. Thus, the real decision must be made based on the competency of the individual agent you will be working with on a day-to-day basis.

Distressed homeowners are encouraged to contact their lenders and loan servicers directly to inquire about foreclosure prevention options that are available. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief.

Making Home Affordable

The Making Home Affordable © (MHA) Program is a critical part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy.

Homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. And for those homeowners for whom homeownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for unemployed homeowners and homeowners who owe more than their homes are worth. Please read the following program summaries to determine which program options may be best suited for your particular circumstances.

Modify or Refinance Your Loan for Lower Payments

• Home Affordable Modification Program (HAMP): HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.
• Principal Reduction Alternative (PRA): PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.
• Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.
• Home Affordable Refinance Program (HARP): If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage.

“Underwater” Mortgages

In today’s housing market, many homeowners have experienced a decrease in their home’s value. Learn about these MHA programs to address this concern for homeowners.

• Home Affordable Refinance Program (HARP): If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage.
• Principal Reduction Alternative: PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.
• Treasury/FHA Second Lien Program (FHA2LP): If you have a second mortgage and the mortgage servicer of your first mortgage agrees to participate in FHA Short Refinance, you may qualify to have your second mortgage on the same home reduced or eliminated through FHA2LP. If the servicer of your second mortgage agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home’s current value.

Assistance for Unemployed Homeowners

• Home Affordable Unemployment Program (UP): If you are having a tough time making your mortgage payments because you are unemployed, you may be eligible for UP. UP provides a temporary reduction or suspension of mortgage payments for at least 12 months while you seek re-employment.
• FHA Forbearance for Unemployed Homeowners: Federal Housing Administration (FHA) requirements now require servicers to extend the forbearance period for unemployed homeowners to 12 months. The changes to FHA’s Special Forbearance Program announced in July 2011 require servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to 12 months and remove upfront hurdles to make it easier for unemployed borrowers to qualify.

Managed Exit for Borrowers

• Home Affordable Foreclosure Alternatives (HAFA): If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA SM.
• “Redemption”is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process.

FHA-Insured Mortgages

The Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD), is working aggressively to halt and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA offers a number of various loss mitigation programs and informational resources to assist FHA-insured homeowners and home equity conversion mortgage (HECM) borrowersfacing financial hardship or unemployment and whose mortgage is either in default or at risk of default.

No credit history

Two lines of credit are necessary to apply for an FHA loan. However, in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms.

Chapter 13 Bankruptcy

FHA will consider approving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee’s written approval will also be neded in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

Chapter 7 Bankruptcy

At least two years must have elapsed since the discharge date of the borrower and/ or spouse’s Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.

Late Payments

During an underwriter analysis of borrower credit, the overall pattern of credit behavior is being reviewed rather than isolated cases of slow payments. If a good payment pattern has been maintained, regardless of a specific period of financial difficulty preceded it, the borrower may escape disqualification.

Foreclosure

FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower’s main residence was a result of extenuating circumstances, an exception may be granted if they have since established good credit. This does not include the inability to sell a home when transferring from one area to another.

Collections, Judgements and Federal Debts

A collection is minor in nature usually does not need to be paid off as a condition for loan approval. It is stated as such in FHA guidelines. Any judgements will have to be paid in full prior to closing. Borrowers who are delinquent on any federal debt, such as tax liens, student loans, etc., are not eligible.

Mortgage Payment Expense to Effective Income

Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowner’s dues, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 29%. See the follow example:

Total amount of new house payment:                                      $750

Borrower’s gross monthly income (including spouse):        $2,850

Divide total house payment by gross monthly income:       $750/&2,850

Debt to income ration:                                                                 26.32%

Total Fixed Payment to Effective Income

Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowner’s dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc). Then, take that amount and divide it by the gross monthly income. The maximum ration to qualify is 41%. See the following example:

Total amount of new house payment :                                     $750

Total amount of monthly recurring debt:                                $400

Total amount on monthly debt:                                                 $1,150

Borrower’s gross monthly income (including spouse):        $2,850

Divide total monthly debt by gross monthly income:           $1,150/$2,850

Debt to income ration:                                                                 40.35%

*Please note that the above indicators do not exclusively determine whether or not a candidate will qualify for an FHA loan. Other factors will be considered, including credit history and job stability. Consult your lender.

FHA Cash-Out Refinance 

In order to get the most benefit from refinance your mortgage, it is often best to consider refinancing after you have had time to build up a significant amount of equity in your home. If the property was purchased more than one year prior to the refinance, the homeowner can refinance the existing mortgage for up to 85 percent of the appraised value plus the allowable closing costs, which vary from state to state. While economic news fluctuates back and forth between good and bad news, HUD and the FHA aren’t taking any chances with the current housing market. According to a 2009 memo from the Department of Housing and Urban Development, the FHA is changing the rules for cas-out refinancing due in part to “…the continued deterioration in the housing market, and FHA’s need to limit it’s exposure to undue risk.”

FHA Streamlined Refinance

This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the aount of paperwork that must be completed by your lender saving you valuable time and money. In order to qualify for Streamlined Refinance your original home loan must be an FHA loan in good standing and the refinance must lower your monthly interest payments. This type of refinancing option reduces your monthly expenses by lowering your payments but there is no option to receive cash back. This works well for people who are in good financial standing with no significant debt because it allows you a little extra money each month that can be put to good use elsewhere.

If you have a conventional loan you wish to refinance with an FHA refinance loan, you’ll need to apply with the usual employment verification, credit check, debt ratio requirements and other considerations. An FHA refinance loan can get your many of the same results, and you may get better rates and lower payments.

*If you are interested in these options, please contact your lender.

The Program combines a 30-year fixed interest rate FHA Mortgage Loan with downpayment and/or closing cost assistance in the form of a low and fixed interest rate Second Mortgage. Total financing up to 99.5% of the purchase price is possible. That means the downpayment from the homebuyer’s own funds could be as little as 1/2 of a percent of the purchase price.

The Program can be used to purchase either a new or existing home, as long as it will be the primary residence of the homebuyer. The Program also features a variety of flexible qualifying guidelines. For example, the Program is not restricted to first-time homebuyers.

Families or individuals who may have owned a home in the past are still eligible to apply for the CHF ACCESS Loan Program.

If you are interested or know someone who may be interested in this program, please contact me for an approved CHF ACCESS Approved Lender.

Unfortunately, this ritual commitment to self-improvement is widely viewed as something of a joke – in part because New Year’s resolutions go so notoriously unmet. After years of watching others – or themselves – excitedly commit to a new goal, only to abandon the quest by March, many come to conclude that New Year’s Resolutions are an exercise in futility that should not be taken seriously.

But such a cynical attitude is false and self-destructive. Making New Year’s resolutions does not have to be futile – and to make them is not silly; done seriously, it is an act of profound moral significance that embodies the essence of a life well-lived.

Consider what we do when we make a New Year’s resolution; we look at where we are in some area of life, think about where we want to be, and then set ourselves a goal to get there. We are tired of feeling chubby and lethargix, say, and want the improved appearance and greater energy level that comes with greater fitness. So we resolve to take up a fun athletic activity – like tennis or a martial art – and plan to do it three times a week.

Is this a laughable act of self-delusion? Hardly. It if were, then how would anyone ever achieve anything in life? If fact, to make  a New Year’s resolution is to recognize the undeniable reality that successful goal-pursuit is possible – the reality that everyone at one time or another has set and achieved long-range goals, and profited by doing so. Indeed, not only is it possible to achieve long-range goals, it is necessary for success in life. To make a New Year’s resolution is also to recognize the undeniable reality that rewarding careers and romances do not just happen automatically – that to get what we want in our lives, we must conciously choose and achieve the right goals. We must be goal-directed.

Unfortunately, a goal-directed orientation is missing to a large extent in too many lives. It is all too easy to live life passively, acting without carefully deciding what one is doing with one’s life and why. How many people do you know who are in the career they fell into out of school, even if it is not very satisfying – or who have children at a certain age because that’s what is expected, even if it’s not what they really want-or who spend endless hours of “free time” in front of the TV, since that’s the most readily available form of relaxation – or who follow a life routine that they never really chose and don’t truly enjoy, but which has the force of habit?

Too often, the goal-directedness embodied by New Year’s resolutions is the exception in lives ruled by passively accepted forces – unexamined routine, short-range desires, or alleged duties. It is the passive approach to happiness that makes so many resolutions peter out, list in the shuffle of life or abandoned due to lost motivation. More broadly than its impact on New Year’s resolutions, the passive approach to happiness is the reason that so many go through life without ever getting-or even knowing- what they really want.

It is a sad irony that those who write off New Year’s resolutions because so many fail reinforces the passive approach to life that causes so many resolutions- and so many other dreams – to fail. The solution to failed New Year’s resolutions is not to abandon the practice, but to supplement it with a broader resolution – a commitment to a goal-directed life.

This New Year’s, resolve to think about how to make your life better, not just once a year, but every day. Resolve to set goals, not just in one or two aspects of life, but in every important aspect and in your life as a whole. Resolve to pursue the goals that will make you successful and happy, not as the exception in a life of passivity, but as the rule that becomes second-nature.

If you do this, you will be resolving to do the most important thing of all: to take your happiness seriously.

The word Mistletoe is derived from the Anglo-Saxon words, “Mistel” (dung) and “tan” (twig) – misteltan is the Old English version of mistletoe. It’s thought that the plant is named after bird droppings on a branch.

One of the beliefs in the early centuries was that mistletoe grew from birds. People used to believe that, rather than just passing through birds in the form of seeds, the mistletoe plant was an inherent result of birds landing in the branches of trees.

Mistletoe is a parasitic plant that grows on trees, particularly hardwood trees like oak and apple. A parasite is a plant of animal that needs another plant or animal to survive. As a mistletoe grows on a tree and uses its roots to invade a tree’s bark, which allows mistletoe to absorb the trees nutrients. Sometimes, mistletoe can harm a tree and cause deformities in the tree’s branches, but usually it doesn’t kill its host.

Ingesting mistletoe can cause severe stomach cramps and diarrhea, and in some cases can be fatal. If you have mistletoe in your house this holiday season, be sure that it is in a place where children and pets won’t be able to get it.

There are a lot of myths surrounding mistletoe. Vikings dating back to the eighth century believed that mistletoe had the power to raise humans from the dead, relating to the resurrection of Balder, the god of the summer sun. Balder had a dream that he was going to die. His mother, Frigga, the goddess of love and beauty was frantic about his dream and said that if he died, everything on each would die. To ensure her son’s safety, Frigga went to tell all of the elements – air, fire, water and earth, as well as to all the animals and plants – and asked them not to kill Balder. In the same way a child would be heckled these days if his mother asked kids not to pick on her child, Balder was teased and had things thrown at him. It was thought that, because of his mother’s power, he was immune to harm.

Balder’s only enemy, Loki, found a loophole in Frigga’s request for her son’s safety – the mistletoe. Loki made a poisoned dart with mistletoe, and tricked the blind brother of Balder, Hoder, into shooting the arrow that killed Balder. For three days, all the elements tried their hardest to bring Balder back to life, but failed. Finally the tears that Frigga cried for her head son changed the red mistletoe berries to white, raising Balder from the dead. Frigga then reversed mistletoe’s bad reputation, and kissed everyone who walked underneath it out of gratitute for getting her some back.

Mistletoe is also said to be a sexual symbol, because of the consistency and color of the berry juice as well as the belief that it is an aphrodisiac. The origin of the tradition of kissing under the mistletoe is vague. The correct mistletoe etiquette is for the man to remove one berry when he kisses a woman. When all the berries are gone, there’s no more kissing permitted underneath that plant.

One legend states that a couple who kisses underneath mistletoe will have good luck, but a couple neglecting to perform the ritual will have bad luck. Specifically, it is believed that a couple kissing under the mistletoe ensure themselves of marriage and a long, happy life, while an unmarried woman not kissed under the mistletoe will remain single for another year.

While mistletoe is widely viewed as a symbol of love and fertility, it’s also representative of peace. Ancient tales tell of enemies who encounter each other underneath trees bearing mistletoe. The enemies lay down their arms, embrace, and agree to a truce until the next day. This act of goodwill is yet another possibility for why we kiss under the mistletoe; abstaining from violence and exchanging greetings under the plant may have prompted the custom of kissing.