Mold in Your Connecticut Home. The Basics

MOLD. No one likes being told that there is mold in the home you are trying to sell, or the home you are interested in buying. When someone uses that word in any context with a home purchase or sale, everyone gets nervous, and all of the most offensive images come to mind. Mold can be removed, but you have to get to the source first.

Mold, Moisture and Your Home

Mold Basics - The key to mold control is moisture control. If mold is a problem in your home, you should clean up the mold promptly and fix the water problem.  It is important to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth.

Why is mold growing in my home? - Molds are part of the natural environment.  Outdoors, molds play a part in nature by breaking down dead organic matter, such as fallen leaves and dead trees.  But indoors, mold growth should be avoided.  Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air.  Mold may begin growing indoors when mold spores land on surfaces that are wet.  There are many types of mold, and none of them will grow without water or moisture.
 
Can mold cause health problems? - Molds are usually not a problem indoors, unless mold spores land on a wet or damp spot and begin growing.  Molds have the potential to cause health problems.  Molds produce allergens (substances that can cause allergic reactions), irritants and, in some cases, potentially toxic substances (mycotoxins).  Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals.  Allergic responses include hay fever-type symptoms, such as sneezing, runny nose, red eyes, and skin rash (dermatitis).  Allergic reactions to mold are common.  They can be immediate or delayed.  Molds can also cause asthma attacks in people with asthma who are allergic to mold.  In addition, mold exposure can irritate the eyes, skin, nose, throat and lungs of both mold-allergic and non-allergic people.  Symptoms other than the allergic and irritant types are not commonly reported as a result of inhaling mold.  Research on mold and health effects is ongoing.  This article provides a brief overview; it does not describe all potential health effects related to mold exposure.  For more detailed information, consult a health professional.  You may also wish to consult your state or local health department.

How do I get rid of mold? - It is impossible to get rid of all mold and mold spores indoors.  Some mold spores will be found floating through the air and in house dust. Mold spores will not grow if moisture is not present.  Indoor mold growth can and should be prevented or controlled by controlling moisture indoors. If there is mold growth in your home, you must clean up the mold and fix the water problem. If you clean up the mold but don't fix the water problem, then, most likely, the mold problem will recur.
 
Who should do the cleanup? - This depends on a number of factors.  One consideration is the size of the mold problem.  If the moldy area is less than about 10 square feet (less than roughly a 3-foot by 3-foot patch), in most cases, you can handle the job yourself, following the guidelines below.  

If there has been a lot of water damage, and/or mold growth covers more than 10 square feet, consult with an InterNACHI inspector. If you choose to hire a contractor (or other professional service provider) to do the cleanup, make sure the contractor has experience cleaning up mold.  Check references and ask the contractor to follow the recommendations of the EPA, the guidelines of the American Conference of Governmental Industrial Hygenists (ACGIH), or other guidelines from professional or government organizations.
    
Do not run the HVAC system if you know or suspect that it is contaminated with mold.  This could spread mold throughout the building.
    
If the water and/or mold damage was caused by sewage or other contaminated water, then call in a professional who has experience cleaning and fixing buildings damaged by contaminated water.
    
If you have health concerns, consult a health professional before starting cleanup.

Tips and Techniques - The tips and techniques presented in this section will help you clean up your mold problem.  Professional cleaners or remediators may use methods not covered here.  Please note that mold may cause staining and cosmetic damage.  It may not be possible to clean an item so that its original appearance is restored.   

    Fix plumbing leaks and other water problems as soon as possible. Dry all items completely.
    Scrub mold off hard surfaces with detergent and water, and dry completely.
    Absorbent or porous materials, such as ceiling tiles and carpet, may have to be thrown away if they become moldy. Mold can grow on or fill in the empty spaces and crevices of porous materials, so the mold may be difficult or impossible to remove completely.
    Avoid exposing yourself or others to mold.
    Do not paint or caulk moldy surfaces.
    
Clean up the mold and dry the surfaces before painting. Paint applied over moldy surfaces is likely to peel.  If you are unsure about how to clean an item, or if the item is expensive or of sentimental value, you may wish to consult a specialist. Specialists in furniture repair and restoration, painting and art restoration and conservation, carpet and rug cleaning, water damage, and fire or water restoration are commonly listed in phone books. Be sure to ask for and check references. Look for specialists who are affiliated with professional organizations.

What to Wear When Cleaning Moldy Areas: -  Avoid breathing in mold or mold spores.  In order to limit your exposure to airborne mold, you may want to wear an N-95 respirator, available at many hardware stores and from companies that advertise on the Internet. (They cost about $12 to $25.)  Some N-95 respirators resemble a paper dust mask with a nozzle on the front, and others are made primarily of plastic or rubber and have removable cartridges that trap and prevent most of the mold spores from entering.  In order to be effective, the respirator or mask must fit properly, so carefully follow the instructions supplied with the respirator. Please note that the Occupational Safety and Health Administration (OSHA) requires that respirators fit properly (via fit testing) when used in an occupational setting.

Wear gloves. Long gloves that extend to the middle of the forearm are recommended.  When working with water and a mild detergent, ordinary household rubber gloves may be used.  If you are using a disinfectant, a biocide such as chlorine bleach, or a strong cleaning solution, you should select gloves made from natural rubber, neoprene, nitrile, polyurethane or PVC.  Avoid touching mold or moldy items with your bare hands.
 
Wear goggles.  Goggles that do not have ventilation holes are recommended.  Avoid getting mold or mold spores in your eyes.

How do I know when the remediation or cleanup is finished? - You must have completely fixed the water or moisture problem before the cleanup or remediation can be considered finished, based on the following guidelines:  

    You should have completed the mold removal.  Visible mold and moldy odors should not be present.  Please note that mold may cause staining and cosmetic damage.   
    You should have revisited the site(s) shortly after cleanup, and it should show no signs of water damage or mold growth.  
    People should have been able to occupy or re-occupy the area without health complaints or physical symptoms.  
    Ultimately, this is a judgment call; there is no easy answer. If you have concerns or questions, be sure to ask your InterNACHI inspector during your next scheduled inspection

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

Connecticut Mortgage Rates and Financing Update September 23, 2011

This Week's Financial News

Unfortunately, HUD does not want to extend the temporary loan limits.  Period.  HUD has conference calls with the heads of mortgage banking divisions every day, and they have been saying since early last summer, they do not want to extent the expanded loan limits.

So it's no big surprise to anyone following the mortgage industry that The Federal Reserve Thursday morning released its 2010 Home Mortgage Disclosure Act database, concluding that a drop in the maximum GSE loan limit to $625,500 (from $729,750) will have only a "small" impact on mortgage origination going forward. 

Researchers at the Fed estimate that in 2010 just 1.3% of Fannie Mae/Freddie Mac mortgages --including both refinancing and purchase money deals – fall into the GSE ‘jumbo' category of being between $625,500 and $729,750.  However, an additional 2.1% of 2010 home-purchase loans and 2.4% of refi's would "potentially" be affected by a decline in Federal Housing Administration loan limits.

Yes, it will cost you more for a loan some time next year.  The Federal Housing Finance Agency as early as Thursday could release its annual report on guarantee fees charged to mortgage bankers by Fannie Mae and Freddie Mac, according to industry officials.  FHFA acting director Ed DeMarco this week said Fannie and Freddie will hike their guarantee fees some time next year to better reflect “that which would be anticipated in a private competitive market.”  DeMarco also hinted that the two may soon stop providing volume discounts to their largest seller/servicers. In 2009 the 10 largest sellers to Fannie and Freddie accounted for about 74% of their total residential purchases in the secondary market.  

Please keep in mind that lenders simply cannot move mortgage rates lower at the same pace as a rapid rally in Benchmark Treasuries.  Although you might hear that mortgage rates are tied to Treasuries, THEY ARE NOT, and you'll be perennially frustrated if you expect them to be.

The current market is in a state of flux at the moment and mortgage rates moving up and down around ALL TIME LOWS.  Best Execution 30yr Fixed rates were mostly near 3.875% this week with some lenders at 4.0%, they're closer to 3.75% with quite a few lenders still at 3.875%.  FHA/VA deals are in a bit of a predicament that's keeping them blocked off below 3.75% (there's no secondary market for rates any lower than that right now!).  For similar reasons, 15 year fixed conventional loans may be stuck at 3.25%.  The secondary market factors driving adjustable rate loans are in a massive state of flux, but one that is mixed between positive and negative.  5 year ARMS remain near 3.125%, but with variations from lender to lender.  Bottom line, adjustable rates aren't participating in this rally to the same extent as fixed rates.

Guidance these days is all about the risk of "pipeline control" price changes among lenders.  Regardless of what happens in markets, be they Treasuries or the Secondary Mortgage Market, lenders can still only write loans to the extent allowed by their capacity.  Lenders also must be careful not to lower rates so quickly that borrowers who recently locked actually break those lock commitments in order to move down to a lower rate.  Even if borrowers do this at the same lender, it costs lenders a lot of money.  So whether it's to avoid that sort of cannibalization or to avoid capacity issues, there's an elevated risk right now of lenders RAISING rates without warning, even if the underlying market movements would not suggest it.

Today's Mortgage Rates

30 year fixed - 3.75% + .0 points for rate
20 year fixed - 3.625 % + 0  points for rate
15 year fixed - 3.125% + 0 points for rate
10 year fixed - 3.125 %  0 points for rate
5/1 ARM - 2.50% - 0 points for rate
7/1 ARM - 2.75%  + 0 points for rate

FHA/VA
30 year fixed - 3.75% +  0 points for rate
5/1 ARM - 2.875 +  0 points for rate
7/1 ARM - 3.250 + 0 point for rate

Jumbo - up to 2,000,000
30 year fixed - 4.625 points  for rate
15 year fixed - 4.125% + 0   points for rate
5/1 ARM - 3.250 % + 0 points for rate
7/1 ARM - 3.875% + 0 points for rate

10/1 ARM -  4.250 % with + 0 points 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.

Why a Home's Market Time is Crucial for BOTH Buyers and Sellers

Short and simple. Market time usually translates into money saved or money lost, depending on which side of the transaction you are on. It can also give you a clue to urgency.

The definition of "Market Time" (MT) or "Days on Market" (DOM)  is the length of time that a home is available for sale or the amount of time a particular home takes to sell, and is measured in days.

Market time is always on Realtor's listings, however some Realtors opt to remove that field from the public handout they give to buyers. You can find it on most any MLS sheet by looking for "MT" or "DOM", but only if it has not been removed from your data sheet. The one small glitch is that if you do see it on your MLS handout (if you can find it) is that the market time that is listed is only for that listing. If the home was on the market previously, you won't see an accumulated market time for that home, which is very important.

Some Realtors will cancel a listing, and put it back on the market immediately to hopefully attract buyers. It is against our MLS regulations, but agents do it anyway. The market time would not be accurate in that instance. Then again, some homeowners switch Realtors after their home failed to sell. That listing would come up as "new", and with a short market time which would also not be accurate.

Realtor.com shows Market Time  information on listings as "Days on Site", which can be a few days off, but you still get the general idea. Zillow also shows this figure as "On Zillow" which is also approximate, and "Yahoo Real Estate" shows you the listing date, but none of these sites accumulate market time for prior listings on the same property. Your Realtor must do the research on this. Incidentally, you won't find Market Time information at all on Trulia.

The Money Factor and The Bottom Line:

The newer the listing, the less likely it is that the seller will negotiate on price and/or terms. Remember to have your agent perform a Property Listing History report so that the information on DOM or MT is accurate. The longer the home has been listed for sale, the more probability there is for increased negotiations. Sellers- this is one VERY good reason to price your home properly right from the start!
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Why You Should Think Twice About Using Your Friend as your Realtor

Most people have a friend or two that is in the real estate business. When it comes time to buy a house or sell your home, or both- your first inclination may be to "use" your friend that's a Realtor.

Not always that good of an idea.  There are over 21,000 Realtors in Connecticut alone, and there are a lot of real estate agents  to choose from. Is your friend an experienced and accomplished full-time Realtor? Unless your friend  truly knows how to market your home and negotiate a sale,  then you are just setting yourself up for trouble, and by that, I mean your bottom line net sales price, AND your friendship. It's time to think twice about it.

Your real estate transaction is a very personal one, and some very private information that you may not want your friend to know may come out.

It's nobody's business in your personal sphere of friends as to  how much money you have in the bank, what your finances are, and what your credit score. You may be judged and not even be aware of it. I know, it's a horrible thing to say. I'm not saying that all agents that are friends with you would disclose your private information to your mutual friends, I'm just saying it can happen. It's an uncomfortable situation that is just waiting to happen, and is easily avoidable.

What would happen if something went wrong or wasn't going well with your home purchase or sale? Would you be strong enough to say something to your friend/Realtor? Is it possible that you could end up getting in an argument and losing the friendship? Suppose that your friend the Realtor botched a sale, and you lost a lot of money because of it. Not good.  Also, easily avoidable.

Okay, so you feel obligated to work with your friend. After all, he/she really is a very good friend. Are you 100 percent certain that they can do the best job for you? Or is this out of loyalty to your friendship?  

Now, I'll ask you the big question...

If you didn't list your home or buy your new home with your friend, would that person be mad at you? Would your friendship be strained at all?  If the answer is yes, your friend will be very mad, then the harsh reality is that that's not really a friend, is it? If you are not sure of the answer, or have any hesitation at all regarding what the answer to that question may be, then the answer really becomes quite clear. A true friend ALWAYS wants what is best for you, and it should NEVER hinge on whether they make any money off of you, or get your business if they truly don't deserve it.

If and when I encounter a client with a friend or relative in the business that they feel immense loyalty to, I offer them the best of both worlds. That is, great representation by me,  and I will give your licensed friend a referral fee on your home sale or purchase. That way you still remain loyal to your friend,  they don't have to do anything at all and get paid without having to work for it,  AND you get the best marketing, negotiation skillset and representation that's available to you.

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Short Sales, Foreclosures, and REO Properties- Are they worth it?

Over the last two years, clients have approached me with the thought of purchasing a property which is advertised as a short sale, a foreclosure property or a Bank Real Estate Owned Property (known as an "REO").   The one thing you need with a Short Sale property and a Foreclosure is time.
 
A Short Sale is a property that is still owned by the Seller and the property is considered to have less value than the mortgage owed to the Bank.  In order to purchase a property that is a short sale, you must obtain approval from the Seller, the bank with the 1st loan and possibly a bank holding a home equity loan on the property.  Many times a buyer will get a great value in purchasing property sold by a short sale, however, it may  take many  weeks or months to accomplish.  If you need to move by a certain date or sell your current home by a certain date this might not be the property for you to purchase, unless you are willing and able to find housing on a month to month lease until the Short Sale is approved, if it is approved and the offered price.
 
A property in foreclosure means that the Owner stopped making mortgage payments and the Bank has started a lawsuit to take the property back.  A Lender may choose to go the foreclosure route instead of the short sale route if the Lender believes the property is worth more than the money owed to it.  Foreclosure actions used to take between 6 to 9 months.  In our current environment it can now take up to 2 years.  The Courts will do everything in their legal power to keep the Homeowner in their home and all avenues must be exhausted before the Courts will allow the Lender/Bank to take the property.  This is a long dragged out process and can be  extremely frustrating.
 
A Real Estate Owned Property, is a property that a Bank has taken over either by Foreclosure or Deed.  The Bank in this situation will close as soon as possible because they already have ownership of the property.
 
Nothing ventured, nothing gained but remember buying a property in foreclosure or advertised as a short sale it is a long dragged out process. You are taking the property "as is", without many of the standard representations.

Article Submitted by Attorney Felicia B. Watson

 
FeliciaWatson@sbcglobal.net