Bad Credit Report from Prospective Tenants? Landlords Take Note

Here is the first in our new real estate law series "Tip of the Week" that you can look forward to every Wednesday. The Tip of the Week is brought to you by OnlyClosings.com

Did you know… If a landlord denies an application or requires a co-signer based on information obtained from a consumer credit report, the landlord must follow the rules of The Fair Credit Reporting Act (FCRA) and provide an “adverse action notice.”

This notice must include:
- the name, address and telephone number of the CRA that supplied the consumer report, including a toll-free telephone number for CRAs that maintain files nationwide;
- a statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give the specific reasons for it; and
- a notice of the individual's right to dispute the accuracy or completeness of any information the CRA furnished, and the consumer's right to a free report from the CRA upon request within 60 days.

To read the article by the Federal Trade Commission “Using Consumer Reports:  What Landlords Need to Know.” click here.

The weekly Tip-of-the-Week* is supplied by Only Closings --

a law firm devoted to real estate closings.

      - Our closing staff is made up of seasoned, experienced real estate attorneys.
      - Close where it is most convenient for the client (home, office, job or bank)
      - Very competitive closing fee and no hidden fees!
      - No fee consultations.
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To learn more about Only Closings and how they can help you quickly close a property transaction, call them at 203-563-9677 or visit them online at www.OnlyClosings.com

*The content within the "Tip-of-the-Week" is strictly for informational purposes and not intended to be interpreted and/or used as legal advice. Only Closings and OnlyClosings.com is a service provided by Tamara L. Peterson Attorney at Law LLC.

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Know the difference - Market Time vs. Market History vs. Listing History.

Once you know the difference between the three, and that there is a very relevant difference between the three,  the most commonly used term that you have heard over and over again (Market Time ) becomes incomplete information and nearly irrelevant as it pertains to pricing your home or negotiating for your purchase.

Market Time: This number is measured in days and  is on every listing data sheet. As I have mentioned in previous articles, the number is pretty much hidden in plain site at the top of your MLS listing fact sheet, and it would appear as trivial as MT 122. As a buyer, you may not be aware that MT 122 means that the market time is 122 days on that listing.

Market History: A complete rundown on that particular home's listing history. For example, that MT 122 that I just mentioned is only for the listing that is active NOW. If that home has been on the market before for 200 days and didn't sell, the market time on that house would effectively and cumulatively be 322, and NOT 122. Would that make a difference to you as a buyer in what you might offer?

That particular home could have been listed more than once before. The cumulative market time is the most important figure with just a few things to remember as you look at this data.

Listing History:  A detailed listing of any changes in status of a particular  home's listing(s). If it has been on the market more than once,  you will need the full Market  History before you can obtain the full Listing History.  The Listing history will include the date the home went on the market and the original list price, the date and amount of any price reductions, the date of any deposit, the date the deposit fell through, adn the date that particular listing went off the market

IMPORTANT TIP: Market time is valuable information, but as far as knowing how to best negotiate for a home,  it means nothing unless a the Listing History is obtained.

Here's a Counterpoint -Why do Realtors seem to quote market time  as such an important number in market statistics if in fact, it may not be complete information as you say?

We refer to and quote market time on a townwide basis for averages. At least I do. I cannot speak for other Realtors. A few things to note about averages. There has to be a high and a low, obviously. Most homes will also fall above and below that average, obviously.  It is a generalization, but still an important one to understand the townwide market performance.

Once you understand town performance, you can better pinpoint a property value within that town. Does that make sense? I liken it to learning the alphabet, before one is able to write a word.  You MUST have a very good knowledge of the alphabet before you can write a word and understand what you actually wrote. You MUST know the town well, before you can price an individual  home effectively.

Obtaining Listing History is great for an indiviual property,  but lends little if anything more to the overall town's market performance which is based on averages. So Market Time is best used as a generalization for the town, and to recap, Listing History should be used specifically to price a home as effectively and appropriately as possible after reviewing market history. Bottom Line:When it comes to pricing a home, never forget the market time as an average, but  the Market History and Listing History are both KEY.

Contact me to price your home. And to sell it. Or negotiate the best deal for you.

Remember, the right agent is KEY, too :)

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Enhancing Energy Efficiency in Your Historic Connecticut Home

As the cost of energy rises, resource supplies become precious and the public becomes increasingly aware of environmental dangers associated with the Historic houses pose unique challenges to energy-reducing retrofitsburning of fossil fuels, home energy efficiency has become more than a fringe concern. Homeowners worldwide are currently enhancing their homes’ energy efficiency, although owners of historic homes have met some unique challenges: How do you introduce new architectural elements into an old home without interfering with its original design? As luck would have it, this concern is somewhat balanced by energy-saving qualities already present in many historic homes that reduce the need for alterations. This article details the ways that historic homes are inherently energy-efficient, and offers ways that such assets can be further improved.
 

Historic buildings are often more energy-efficient than modern construction. In fact, studies have shown that buildings constructed before 1940 require less energy consumption for heating and cooling than houses built during the subsequent 35 years. Before electricity was available, homes capitalized on natural sources of lighting, heating and ventilation because the house itself – not electric lights and heaters – was all that protected occupants from the elements. Some specific elements of older buildings that contribute to their excellent energy efficiency are as follows:

   * thick, heat-retaining masonry walls made from stone or brick;
   * exterior balconies, porches, wide roof overhangs, rooftop ventilators, clerestories, skylights, awnings and shade trees were all used in homes built in warmer climates;
    *windows often include exterior shutters, interior Venetian blinds, curtains and drapes which make them more energy-efficient than modern windows;
    *exterior walls were often painted light colors to reflect the hot summer sun, resulting in cooler interior living spaces;Skylights, which maximise natural sunlight, were more common in older homes than they are today.
    and

    *windows were only installed where they could effectively allow for lighting and ventilation. Modern architecture, by contrast, relies on more windows than are necessary as a stylistic measure, with a reduced R-value as an unfortunate side effect.

Retrofit dangers to avoid in historic buildings:

   *avoid waterproofing old masonry. Waterproof coatings will trap moisture against the masonry, potentially causing deterioration during the freezing cycle;
    *damage to or removal of historic architectural elements. Replacing solid, historic materials or components, such as natural wood with substitutes made of plywood or plastics, have short lifespans under certain conditions;
    *exposing occupants to toxins, such as lead dust and asbestos. Older homes were built before much was known about the health effects of certain chemicals, some of which might become airborne during the retrofit process. Be sure to ask your InterNACHI inspector about concerns during your next inspection;
    *introducing materials that may damage existing components. Certain cellulose insulation uses ammonium or aluminum sulfate as a fire retardant, which may react with moisture in the air to form sulfuric acid and damage metals (including plumbing and wiring), building stones, brick and wood; and
    *retrofits that violate rules imposed by committees overseeing historic districts. In some areas, even exterior paint color must be approved.
    *removing historic windows and other components, adding aluminum siding, or installing dropped ceilings in interior spaces.

Retrofits in Historic Buildings

The following retrofits are often used in historic buildings to make them more energy-efficient:

    Add insulation to crawlspaces. This feat may be significantly more cumbersome than adding attic insulation because crawlspaces are often excessively moist. If insulation is added to moist areas of the house, care should be taken to ventilate the area, perhaps with the assistance of an exhaust fan.
    Add weatherstripping to doors and windows. A common problem in historic buildings is leaky windows and doors, which can be mitigated by caulking open cracks and joints. Be sure to only use appropriate colors that do not interfere with the historic character of the house. Also, do not seal the building so much that moisture cannot escape the building.
    Add insulation to the attic. This process is often easier than adding insulation in other areas, such as in walls, and is hugely energy saving. The most common insulation materials include cellulose, mineral wool, fiberglass, and vermiculite.
    Add storm windows. Rather than removing historic windows, supplement them with storm windows that reduce thermal transmission and do not affect the historic character of the building. Storm windows can be painted if their colors are inappropriate. Care should be taken during installation to avoid damage to the historic window frames. Storm windows will be effective regardless of whether they are installed on the interior or exterior of the original frame, although this decision will have consequences; interior storm windows may cause the historic windows to become excessively cold, causing moisture to condense, resulting in peeling paint and deteriorated wood. If the storm windows are installed on the exterior, however, they may interfere with the building’s image.Shade trees lessen the need for air conditioning in summer
    Replace incandescent light bulbs with compact fluorescent light (CFL) bulbs. This change is a good idea in any home regardless of its age, but it is especially helpful in older homes because it disturbs none of the home's character.
    Replace old appliances. Old buildings often have old appliances, which should be replaced with Energy Star®-rated appliances.
    Add a shade tree. A tree can be an effective barrier against the sun during the summer months, and it increases the natural, historic appeal of an old house. A deciduous tree is best because it will lose its leaves in the winter and allow sunlight to enter the house when it is most needed. The tree should be placed at a safe distance from the house to avoid damage to the foundation and falling limbs during a windstorm.
    Install storm doors in cold climates, although they are often not cost-effective in warmer climates. Historic doors usually require little alteration, especially if they are solid wood and in good condition, or if they are critical to the historic appearance of the house.
    Vestibules are architectural features that reduce heat loss by creating an additional airspace while the exterior door is open. They are often not, however, cost-effective as an add-on due to their high price of installation. Also, they are not likely to mesh with the appearance of historic buildings.
    Replace windows. This should be done only when the historic windows are damaged to the point where repair is impractical. The new windows should be selected to match the style of the building. As mentioned earlier, the addition of storm windows is an effective, minimally invasive way to reduce utility costs.

In summary, historic homes possess qualities that make them inherently energy-efficient while simultaneously resistant to retrofits that would enhance energy savings. Homeowners should thus take care while altering their old homes, but also grateful for the hardwired efficiency they have inherited from previous generations.
 
Article submitted by Nick Gromicko and Rob London

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV

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My Listing Expired- Now I am getting all kinds of calls. So Where Were All Those Agents Before?

Aah.. The expired listing. It has to be very frustrating for a seller who has had their home on the market for six months or more, and with only a few showings to speak of,  to all of a sudden get a barrage of calls from agents who want to sell their home.  So where were all these agents when your home was on the market?

Well, there are a few things going on here.  Your home did not sell  (Click here for the single biggest reason why)  It comes up on what we call a "Hot Sheet"  so real estate agents know that your home is no longer on the market. A  "Hot Sheet" is a compilation of all the listing changes in a town that also includes all status changes. For example, the hot sheet will let us know that there is a new listing on the market, that a price has been reduced, that a property has gone under deposit, and also if the property has gone off the market, which is what has just happened to you. That's when the calls start.

Some agents are a little slick about going after these types of listings, and will tell  you just about anything to get in the door, and promise the world if you list with them. They do their best to make a living out of preying on homeowners whose listings expired. And guess what? It will expire again with that type of agent, who just wants your signature on an agreement and will fall off the face of the earth after that. I'd definitely steer clear of those types.

If you are still interested in selling your home, you just have to weed those types out. They make themselves quite apparent, I am sure. The important thing is to meet with an agent, or a few agents who you really feel that you can see eye-to-eye with based upon your initial conversation, and that you have a "good feeling" about.

Whenever I call upon an expired listing, and I do on occasion- by the way, the home has to meet certain criteria, and that is for me to even bother to make a phone call. Number one- I will call if I have a client that may be interested in the property. Number two, I will call if I am enamored with the home, and am confident that I can sell it.

My 26+ years of experience has taught me more than one very valuable lesson when it comes to selling a home. Be truthful with your descriptions,  be as complete as you can with  information provided, and make sure that the listing is presented at its best, and as visible  as it can be in all of the right places. You would be surprised at how many agents do not follow this very basic rule of home marketing.

If your home has expired from the marketplace, and you still wish to sell it, get on the phone right away and get it re-listed. One thing for sure, your home will NOT sell if it is not "in the market".
 
If you think that all of the conditions were right and your home still did not sell, call me or contact me. I will give you an honest evaluation- and just get it out of your head that it is all about the market. It's a lot about the marketing, too.

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Connecticut Mortgage Rates and Financing Update October 7, 2011

It's possible, but unlikely last week will be the last time you'll see a 4% rate available on a 30 year fixed mortgage.  When jobs data is strong, rates usually move higher.  So weigh the risks of an unfriendly market movement .  If you're in a purchase scenario or are certainly going to refinance, the reward for a well-timed float likely isn't worth the risk here.

This Week's Financial News

At the Senate Banking Committee Hearing on Thursday, Treasury Secretary Timothy Geithner said he expects a U.S. housing regulator to detail mortgage refinance programs that could help the battered housing market in the coming weeks.

"My sense is, based on what I've seen...it's going to be meaningful enough to make a difference." Geithner said. "They are looking at a range of things and you'll see more details in a couple of weeks."

Bank of America this week made the decision to exit retail lending in six low volume states including Alabama, Alaska, Montana, Nebraska, Wisconsin, and Wyoming, per the National Mortgage News.

"An inspector general for HUD has recommended that Bank of America face fraud charges relating to faulty borrowing data submitted to the agency in connection with its Country Wide unit. In his words "Country Wide did not properly verify, analyze, or support borrowers' employment and income, source of funds to close, liabilities and credit information." And isn't that the basic problem, summed up in one little sentence?

Fannie has new policies for loans that become delinquent after 10/1 "to streamline and simplify servicing processes, help servicers to contact delinquent borrowers more effectively, determine eligibility and offer foreclosure prevention alternatives to struggling homeowners." Your servicing group had better know them!

Fannie 3.5's are in line with their lows of the day at 102-04 and 10 year yields are also at their worst levels at 1.98. Unless things bounce back fairly quickly, we're at a moderate risk for re-prices for the worse. However, there hasn't been a material shift in the broader trends.

10 year yields traded up to 1.92 but quickly fell back into the 1.89's after the Bank of England left interest rates unchanged. This put a dent in stock futures as well, but after only a brief reversal of the overnight sentiment, all sides of the market Thursday bounced right back ahead of 8:30 am Jobless Claims.

For Mortgage Backed Securities, this is lowest end of the trend channel they've been in since early August.  For Treasuries, it's looking like a technical bounce off their midpoint with support up around the 2% range.

If current weakness holds, rate sheets should be weaker.  Fannie 3.5's got pretty close to 102-00 after the Jobless Claims report but have since surged back more than quarter of a point and now sit only 3 ticks down vs 102-11. While this significantly improves the rate sheet outlook, it could also cause delays. The last thing to consider is that we may soon find out that the big upswing was due to opportunistic Fed buying which could result in Mortgage Backed Securities drifting back toward previous lows.

Today's Mortgage Rates

30 year fixed - 3.99 + 0 points for rate
20 year fixed - 3.875% + .0 points for rate
15 year fixed - 3.250 % + .0 points for rate
10 year fixed - 3.250%  + .0 points for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 2.875 %  + 0 points for rate

FHA/VA
30 year fixed - 3.875        % +  0 points for rate
5/1 ARM - 2.875 +  0 points for rate
7/1 ARM - 3.25 + .50 lender credit  point for rate

Jumbo - over 635,000 up to 2,000,000 at 80% loan to value
30 year fixed - 4.750 % with +0  points  for rate
15 year fixed - 4.250 % + 0   points for rate
5/1 ARM - 3.250 % + 0 points for rate
7/1 ARM - 3.625% + 0 points for rate

10/1 ARM -  4.375% with + .0 points cost for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
 on mortgages offering Free Unbiased
recommendations based on your needs.