Real Estate Information Archive

When the Obama administration announced the Home Affordable Modification Program (HAMP) in 2009, officials estimated 3 to 4 million borrowers would seek relief from their mortgages through the program during the worst recession and housing market collapse in decades.  More than two years later, however, those projections have proven to be optimistic, to say the least.  Mired in extensive paperwork, lost documentation, costly time delays, and extreme frustration on the part of the Chester County PA home owners attempting to participate, the program has been examined, monitored, revised over and over to make the process a smoother and more successful one.  A daunting task, however; the most recent report by the Office of the Special Inspector General for the Troubled Asset Relief Program SIGTARP) devoted over 15 pages to a description of procedures, requirement, and changes involved with the program!

Originally designed to help financially struggling owners of Chester County PA homes avoid foreclosure by modifying their loans to a level that is both affordable and sustainable, HAMP’s success is uncertain—or at least arguable.  Critics charge that only 700,000 owners have actually benefitted from the program and claim that while the Treasury initially committed $75 billion of Troubled Asset Relief Program funds to the HAMP initiative, it now appears it will spend only $4 billion on HAMP incentives.

The members of the Congressional Oversight Panel even stated that government’s loan modification program was “ineffective,” and they claimed that the Treasury’s reluctance to address flaws of the program has had “real consequences.”  Their report also states that the Treasury has failed to hold loan servicers accountable when they have repeatedly lost borrower paperwork or refused to perform loan modifications. And TARP has stated “The program has been beset by problems from the outset and, despite frequent retooling, continues to fall dramatically short of any meaningful standard of success."

There are, of course, success stories, and supporters point out that the 700,000 approved loan modifications mean that many fewer foreclosures.  They urge financially-strapped home owners to fully investigate the program, get help to complete the sometimes grueling process, and use websites specifically designed for the potential applicant.  They also maintain that eligible homeowners entering HAMP have a high likelihood of earning a permanent modification and realizing long-term success. The rate of modifications moving from trial to permanent is up to 74 percent, and the average time to convert from a trial to permanent modification is down to 3.5 months.

Here are some sensible travel tips for you…

While many people choose to stay in—or close to—their Chester County PA home during this busy season, a large number of folks travel via plane, train, or car to celebrate with family and friends.  To maximize holiday travel happiness and minimize coal-in-the-stocking disappointment, follow these basic but helpful tips compiled by ASTA (American Society of Travel Agents) as they reveal secrets that will help you and your family arrive at Grandma's house full of holiday cheer.

Before leaving:

• Packing light saves time and energy when it comes to filling the trunk with fragile bags packed with gifts or racing to fill the last empty space in the overhead bin.
• 
  Be sure to secure your Chester County PA home. Lock all doors and windows, and don't forget to set the alarm.
  Also, give your home that lived-in look to repel potential burglars by having a friend collect your mail, setting lights on timers, and omitting details of your trip on the answering machine.

Air travel:

• If possible, have a friend drive you to the airport, or take a shuttle or public transportation.
• Take the worry of getting to the airport completely out of the equation by staying at an airport hotel the night before an early flight.
• As flights are sometimes overbooked during the holidays, it's critical to check in early. Domestic travelers should arrive at the airport at least two hours prior to departure, while international travelers should arrive at least three hours in advance.
• Remember that delays can occur. Bring water and snacks, an inflatable pillow, a good book, your favorite CDs, MP3 player, and a deck of cards to help pass the idle time.

Car travel:

• Before you leave your Chester County PA home, have a qualified mechanic check all the car's vitals: brakes, battery, fluid levels, tire pressure, light bulbs and any parts that need regular maintenance.
• Bring emergency equipment, such as a first-aid kit, flashlight, blankets, drinking water and snacks, along with flares and jumper cables.
• Don't leave valuables in your car. Pack all items, especially brightly wrapped packages, in the trunk. If you’re afraid of squashed bows, wait until you arrive to wrap the gifts.
• If you're travelling with children, get everyone involved by singing or reminiscing about favorite past holidays. The ride will be over before you know it, and you may actually look forward to the drive back home.

Whatever your mode of travel, make sure you take along a large supply of holiday cheer!

If you are one of the millions of Americans whose home has lost value in recent years, despair not.  Whether you’re trying to spiff up your Chester County PA real estate for resale, to raise its appraisal, or just to keep current with updating and maintaining what you currently have, there are many relatively easy and budget-worthy steps you can take.   Some of these minor projects designed to increase value are quick fixes while others may require a weekend’s worth of work, but all will certainly revive the look of your property.

Exterior improvements:

• Keep shrubs and trees neatly pruned.  Plant new trees for energy savings and aesthetic value.
• Add low-voltage lighting for pathways
• Pay attention to the front door of your Chester County PA real estate.  Does it need new weather stripping?  A fresh coat of paint? Updated (or at least polished) hardware—knockers, knobs, hinges, and light fixtures?
• Spend $10 to test your lawn for needed nutrients.
• Attend to the garage door.  Use a mixture of one part bleach to three parts water and a soft-bristled brush to give it a thorough cleaning.  Still dirty or stained?  Rent a power washer for about $60.
• Check for faded or peeling paint.  Sand and apply a fresh coat.

Interior improvements:

• If you can’t replace the water heater in your Chester County PA real estate with a tankless model, wrap the one you have in fireproof insulation.
• Install modern light switches and outlets throughout your home.  Add dimmer switches.
• Insulate windows.  (Easy-to-follow instructions.)
• In bathrooms replace dated towel racks, light fixtures, sinks, toilet seats, and hardware.  Purchase a low flow toilet.  Re-grout where needed.  Display matching towels.  If the floor is in poor shape, consider putting easy-to-install vinyl tiles right over the old one.
• Add crown moldings, wood trim, and/or cornices to give room a look of quality.
• Update your kitchen inexpensively by replacing fixtures, faucets, and hardware.  Consider pendant lighting.  Refinish cabinets rather than replacing them.
• Clean and organize all closets. 

Your credit score is a number that helps lenders predict how likely you are to make your payments on time. This score affects your ability to obtain credit and helps determine what you pay for credit cards, auto loans, and mortgages on Chester County PA homes. Even your insurance rate is related to your score. The higher your score, often referred to as a FICO score, the more apt you are to be approved for and pay a lower interest rate on new loans. Scores ranging from 650 and below are considered bad and indicate to the lender that you are a very high risk. Chances are you will be unable to secure a loan, or if you are, it will be at a much higher interest rate and/or require a cosigner.

What If there Are Errors

What to do if you have a low score and do not qualify for a mortgage on a Chester County PA home? Your first action should be to check your credit report for errors. If you find erroneous information, you need to act immediately by contacting both the credit bureau (the three major ones are Equifax, Experian, and Transunion) and the organization that provided that information.

• The credit bureau/agency: Send a certified, return receipt requested letter to the bureau pointing out each inaccuracy and enclose copies of documents which support your claim as well as the report itself (with the misinformation highlighted). Factually explain why you dispute each item and request a deletion or correction for each one.
• The creditor or information provider: Send the same type of letter and enclose the same documents. Request that the provider notify you of action taken (generally within 90 days) so that you can verify the amended information.

If there are no errors on your report, then you should take immediate steps to improve your credit. Ways to do this include the following:

• Stop using your credit cards. Do not continue to accumulate debt.
• Get current on delinquent accounts. Since payment history makes up 35% of your score, this action will have a great impact on your score.
• Keep accounts with balances open, but don’t apply for more credit.
• Call your creditors. Explain your financial situation and ask about possible hardship programs which will temporarily reduce your monthly payments.
• Begin paying off your existing debts, even if you have to sell some belongings to do so. Come up with a get-out-of-debt plan and stick to it.
• Get professional help. There are resources available to help you reestablish a good credit rating. Contact the National Foundation for Credit Counseling for assistance.
• Be patient. Realize that improving your credit score takes time and that there is no quick-fix --and keep in mind your goal of owning a Chester County PA home.

The end of summer brings an opportunity for a new home maintenance to-do list. Of particular importance at this time is the checking of the exterior of your Chester County PA real estate while good weather permits close inspection.

One practical suggestion from All Surface Clean Company is that it is wise to begin your inspection from the top of your piece of your house and work your way down to ground level, gravity being what it is. Thus, to avoid the need for re-cleaning, remember to start at the roof and gutters, proceed to windows, siding, decks, and fences; then go on to the pavement/driveway of your Chester County PA real estate.

1. ROOFS AND GUTTERS:

Strong winter winds may well have loosened a shingle or two on your roof, and they certainly have deposited unwanted leaves, twigs, etc., in the gutters. Here is expert advice on how to properly clean out that residue and inspect your roof like a professional.

2. EXTERIOR MATERIALS:

No matter the type of material used on the outside of your Chester County PA real estate, you want to check it carefully to preserve the integrity of the house.

• Vinyl siding: Look for loose or missing siding, cracks, or breakage; deterioration or fading; mold/mildew; and punctures. It is generally best to replace any damaged piece.
• Brick: Cracked mortar and/or crumbling or cracked bricks are what you’re looking for.
• Stucco: Cracks, crumbling, and water damage are three problems for which you’ll want to check.
• Wood: Be on the lookout for signs of rot, peeling/blistering paint, mold, and termite damage.  While some of these conditions may be minor and can be fixed by you, other more serious problems may require the assistance of a professional

*Note: If you are considering power washing the exterior of your Chester County PA real estate, consult the above-mentioned website for tips on doing that job.

3. WINDOWS:

Make sure your windows (and doors) are tightly sealed to prevent air leakage. Also repair/replace caulk and weather stripping and repaint trim as needed.

4. DECKS:

Secure loose nails/fasteners. If replacing them, use galvanized or stainless steel deck screws. Reinforce loose stairs and railings and check to make certain that the deck has not pulled away from your house. Clean the deck with a biodegradable detergent and a brush to remove debris and stains and apply a preservative if needed.

5. FENCES:

Ascertain that posts are firmly implanted and that no wood is showing signs of rot or termites. Think about treating fence wood with a fresh coat of preservative.

6. DRIVEWAYS AND PAVEMENT:

Check for cracks, crumbling, and erosion and remove moss and debris. Here are excellent tips for cleaning the driveway of your Chester County PA real estate, be it concrete, asphalt, brick, or pavers.

For years the idea of a starter home has usually meant a property that may need some work, but a recent survey by Caldwell Banker discovered  that most first-time buyers aren’t in the market for those kinds of houses. According to the poll, 87 percent of recent first-time buyers said that finding a move-in ready home was important to them. These buyers, who accounted for 33 percent of existing home sales in December, stated that the condition and quality of the Chester County PA real estate they purchased mattered a great deal. One Realtor has referred to these folks as “HGTV buyers.’

Nearly all Realtors will tell you that a house which has been well maintained and needs few, if any, repairs, even cosmetic ones, will sell faster than others. While some renovations/repairs may be relatively expensive, such as installing a new roof, repaving the driveway, or upgrading appliances, most agents advise a seller not to undertake major renovations, especially in the kitchen or bathrooms. They advise not spending more than you’ll recoup in the sales price and understanding that major renovations are generally a matter of personal taste..

Remodeling is for buyers, not sellers. Major renovations usually don’t pay for themselves, let alone add enough value for you to make a profit. So why would you want to go through the hassle and the expense right before you move? Concentrate instead on smaller fixes with bigger impact and let your buyers remodel to suit themselves. In addition to removing all clutter from your Chester County PA real estate, thoroughly cleaning the whole house, and downsizing in regards to furniture and personal items, you should also seriously consider:

• Adding a fresh coat of paint (in a neutral shade) where needed
• Presenting a well-tended yard
• Fixing dripping faucets and checking all caulking

If you are prepared to invest some money to improve your home’s presentation, start with the most cost-effective projects and remember to keep a journal of jobs and receipts. Home improvement costs are often deductible (when costs are incurred 90 days before the sale and paid within 30 days after the sale). While lawn-mowing and  weekly cleaning bills do not qualify according to IRS regulations, new paint, a new water heater, or new gutters usually do apply. Some hints:

• Replace broken gutters and shutters.
• New paint indoors or out is usually approved by the IRS for deduction if completed and paid for near the time of sale.
• New floor coverings (in neutral shades) on kitchen and bathroom floors may be another affordable investment which can speed a sale by appealing to buyers’ desire for a property that is ‘ready to move in,’ particularly if the current style of colors are dated.
• Repair broken woodwork, loose planks, and creaky stairs. No buyer wants a home that needs structural repairs.
• Hardwood floors are a plus. If you have hardwood floors, consider removing anything covering, them up, especially if the carpet is worn. Refinish the wood if necessary.

So if you want a quick sale and hope for top dollar, take steps in advance of listing to convince potential buyers that your home is move-in ready and definitely one worthy of an “HGTV” buyer!

For the latest Chester County PA real estate market conditions in your neighborhood, please call me at 610-564-SCOT or visit ChesterCountyHomeSource.com.