Brodie Stephens- Broker Associate Selling Homes in Folsom | Placerville | Pollock Pines | El Dorado Hills | Elk Grove | Roseville | Rocklin

In the third quarter of 2011, 82 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table, according to a report by Freddie Mac. Of these borrowers, 44 percent maintained about the same loan amount, and 37 percent of refinancing homeowners reduced their principal balance.”Cash-out” borrowers, those who increased their loan balance by at least five percent, represented 18 percent of all refinance loans; the average cash-out share during the 1985-to- 2010 period was 46 percent.More info

Does it feel like trust is one of the major casualties of the economic meltdown of 2008 – followed by the “Great Recession,” the “Jobless Recovery” and now the threat of a “Double Dip Recession?”

Weren’t we assured that home values were destined to go up and up and up?

There have been lots of promises that help is on the way—and lots of warnings of scams and schemes that have only served to confuse the matter. So where’s a homeowner who’s underwater or over leveraged to turn?

Here’s the bottom line: the choices that homeowners make when they feel they are at the end of their rope will have ramifications for years to come on their ability to qualify for credit, their job prospects, their security clearance and their overall finances. When a family’s financial trajectory is rapidly heading in a negative direction, there’s no substitute for the helping hand of a knowledgeable expert who has the integrity, the experience and the training to reverse the course—someone who is tapped into regulatory initiatives and can separate fact from fiction.

It is my mission to serve as a credible source of information and perspective to homeowners who have found themselves in a tough situation and need help sorting through their options. That’s why I sought out the Certified Distressed Property (CDPE) designation—the most renowned and recognized credential in the distressed property field, and it’s why I continue to stay on top of regulatory and industry developments that impact options available to homeowners who are struggling with their current financial situations.

My message to homeowners who do not know where to turn: there is hope. Foreclosure is not inevitable and neither the government nor your bank wants to see that happen. No one expected to find themselves on the brink of foreclosure, but I have worked with countless clients who have managed to turn their financial trajectory around and get on a path of financial recovery.

It CAN be done! And it would be my privilege to help.

California Insurance Commissioner Steve Poizner is encouraging California homeowners to review their homeowners’ policies and to consider their options regarding vacancy protection.   According to Commissioner Poizner, vacant or unoccupied homes can leave the homeowner exposed to loss and liability that may not be covered by their insurance.

Homeowners’ policies are intended to insure occupied homes.  Generally home insurance policies include exclusions for neglect or property abandonment on a home left vacant or unoccupied for a specified number of consecutive days.  Vacant and unoccupied homes pose a higher risk for damage than occupied homes, so insurance companies insure these properties differently and usually at a higher price.

More info.

The ad looks too good to be true — a home with all the prerequisites you want is on the market in a fabulous neighborhood. The community is near work, the schools are great, there are lots of activities nearby — and the asking price is competitive.

When the prospective buyers approach the newly listed home, hopes plummet — the place is vacant. Unfortunately, a home which is merely “lived-in” when furnished and occupied may look bare and blemished when empty. But the good news is that selling a vacant home isn’t an impossible task, especially if you follow these pointers:

There’s no place like home to save on the cost of living.

Home is, after all, also where many cost of living expenses have risen, according to the Center for Housing Policy, the research affiliate of the National Housing Conference (NHC).

While incomes have risen only 30 to 35 percent in the ten years ending in 2006, some home-related costs are up by more than 80 percent, according to the Center’s “Stretched Thin: The Impact of Rising Housing Expenses on America’s Owners and Renters.”

Here’s how not to be stretched so thin while preparing yourself for your next home purchase.

Create or update your household budget and balance it. Account for every penny you earn, every penny you save and every penny you spend to reveal your spending habits. Your spending habits will show you where you can cut back. Get an online assist from Consumer Reports’ recommendations: Buxfer.com, Geezeo.com and Yodlee.com.

Move down. The average monthly mortgage payment rose 46 percent during the ten years ending in 2006. Don’t wait to be an empty-nester or to fund your retirement. Cash in on a smaller home now. Factor in selling costs, the potential for a capital gains tax hit and higher property taxes, but with enough long time equity, a smaller home could come mortgage free.

Sell out, simplify and organize. Sell all that stuff that won’t fit into a smaller home. Sell all that stuff you’ll never use. An organized home is a time-saving home. A time-saving home is a money-saving home, says the National Association of Professional Organizers.

CraigsList.com and Ebay.com (Ebay trading assistants will do the work for you) are the usual suspects, but you can open your own cool store on Amazon.com and sell newer, less obscure items for much more than you’d get at a garage sale. Also, give stuff away to charity for a small tax deduction.

Shop around for homeowners insurance. Insurance premiums rose 83 percent in ten years ending in 2006, but rates still vary. Comparison shop direct among various companies. Use an Independent Insurance Agent to shop around. Comparison shop online with Insure.com, Geico.com, Progressive.com, Esurance.com and others.

Raise deductibles to cut costs more. Save with discounts for home fire safety and security systems, for buying multiple policies (auto, life, health, etc.) from one company, and for avoiding unnecessary claims.

Appeal your property tax assessment. In most jurisdictions property taxes are assessed based on a home’s price. But in areas where home prices have tanked — especially if you purchased your home in a bidding war, during the peak of the market — you could get a tax break.

See your assessor or other tax collector for the appeal process for your jurisdiction. Be prepared to prove the value of your home with an appraisal or comparative market analysis of recently sold properties that are as identical as possible to your home.

Green up. The cost of energy rose 43 percent from 1996 to 2006, and even more since then, according to the Center. Your home abounds with energy saving possibilities. Check with your local utility and state energy agency.

The Residential Energy Services Network offers referrals to energy auditors who can help you uncover energy leaks. Also the U.S. Department of Energy’s (DOE) “Energy Savings” page offers a host of additional tips.

Get help. Don’t hesitate to reach out for financial help. Always contact creditors at the first sign of trouble. That’s when more opportunities for relief are available. You may be eligible for mortgage modification, special refinance loans or other assistance that can reduce your monthly mortgage.

Don’t squander your savings. Bank some money saved to save for a downpayment and pad or start an emergency slush fund. Also use saved money to pay down debt and slay the revolving credit interest rate monster.

Written by Broderick Perkins