December 21, 2011 10:06 pm
Fannie Mae’s and Freddie Mac’s (the “Enterprises”) foreclosure prevention activity increased in the third quarter of 2011 and totaled nearly 2 million foreclosure prevention actions since the beginning of conservatorship in 2008. During this period, the Enterprises completed one million loan modifications, helping borrowers stay in their homes.
According to the Federal Housing Finance Agency’s third quarter 2011 Foreclosure Prevention & Refinance Report, the increase in completed foreclosure prevention activity in the third quarter was driven primarily by loan modifications and repayment plans. Two-thirds of all borrowers who received loan modifications in the third quarter had their monthly payments reduced by over 20 percent. Additionally, the Enterprises' cumulative refinancings through the Home Affordable Refinance Program (HARP) increased 11 percent during the third quarter to nearly 928,600 loans.
Also in the report:
-The Enterprises have completed nearly 2 million foreclosure prevention actions since the start of conservatorship. Nearly 1.7 million of these actions have allowed borrowers to retain homeownership, with more than one million being permanent loan modifications.
-Loans modified since the start of HAMP are performing substantially better compared with loans modified in earlier periods.
-Serious delinquency rates continued to decline. However, the percentage of loans that have missed one payment increased during the third quarter.
-REO inventory declined for the fourth consecutive quarter as property dispositions continued to outpace acquisitions in the third quarter.
To view the third quarter 2011 Foreclosure Prevention & Refinance Report, visit: http://www.fhfa.gov/webfiles/22826/3q11FPRF.pdf. For more information, visit www.fhfa.gov.
December 21, 2011 4:06 pm
As with most decorating choices, beauty is in the eye of the beholder. But with so many carpeting choices in today’s marketplace, it’s wise to know something about the basics of style and durability before you head for the store.
While many consider wool carpet best overall for sheer luxury and durability, carpets made of nylon or polypropylene are today’s two most popular choices--and the two best performing fibers. Polyester, which has great softness, is good for bedrooms, but for heavier traffic areas, nylon is perhaps the best option, with polypropylene a close second.
Work with an experienced sales representative to choose the style most practical for your family, your lifestyle and your pets. Apart from fiber, the carpet style will make a difference in overall look.
Berber: Loop-style carpeting features loops of the same height and performs well even in high-traffic areas. Many popular berber styles feature flecks of a darker color on a lighter background.
Cut pile: Loops are cut, leaving individual yarn tufts. Durability depends on the type of fiber, the density of the tufts and the amount of twist in the yarn. Cut pile carpet is available in a variety of finishes from plush velvet for a more formal look to Saxony, frieze or textured pile, which minimize footprints and vacuum marks.
Cut-and-loop: A combination of cut and looped yarns; provides a variety of surface textures including sculptured effects in squares or swirls.
Multi-level loop: Has two or three different loop heights to create pattern effects and surface texture. It also provides a more casual look.
Patterned or print: By using yarns of varying heights and treatments, patterned carpets offer everything from pin dots to floral designs to geometric prints.
When comparing carpets and carpet brands, remember the higher the density (how close the tufts are spaced together) and the tighter the twist, the better the overall performance.
Source: Consumer Reports
December 21, 2011 4:06 pm
While house shopping can be fun, it can also be intimidating for those who are new to the experience. There are many factors to consider when looking to purchase a home- from what neighborhood to which floor plan and much more.
Focus on four key factors when looking to buy a house:
1. Location, location, location. A house needs to be near what's important to you and your lifestyle. How important is it to you that your home is close to your office? Is it more important to you that you're close to a good medical center or a convenient grocery store? Everyone has their priorities, and you have to consider your family's when thinking about location.
2. The house. Does the floor plan meet your needs? Does it have enough room for your family to grow if future growth is in your plans? Think of buying for the long term and consider whether the house meets your needs, not just now, but any future needs you can anticipate. And don't discount your gut feeling. If this home doesn't feel like home to you, then move on.
3. Affordability. Getting pre-qualified for a mortgage before you begin visiting homes is the best way to know what you can afford. Often people fall into the trap of looking first, and falling in love with a home that's well out of their price range. Only look in whatever price range you can pre-qualify for.
4. Resale. As much as you like the idea of seeing you and your family growing old and gray in your new home, chances are you won't. Most people do not live in their house even for the full term of their mortgage. When home shopping, keep in mind that at some point you will probably want to put your home on the market, so don't compromise. If you decide a house has some aspects that you can overlook, you need to be aware that someone else may not feel the same way. When home shopping, choose a house that is not only appealing to you, but is also likely going to appeal to others down the road.
December 21, 2011 4:06 pm
The New Year has arrived along with a nationwide blast of cold temperatures leaving homeowners wondering how to bring heating and related energy costs and usage down while maintaining home comfort. In addition to plugging air leaks, the Alliance to Save Energy is encouraging homeowners to use sunlight as a cheap alternative to heating their home.
The Alliance provides the following tips for homeowners to heat their home for less this winter:
-Open curtains and other window treatments on your west- and south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night.
-Let a programmable thermostat “remember for you” to lower the heat while your home is empty and/or overnight to reduce heating costs by up to 10 percent–and allow you to come home and wake up to a toasty, comfortable house.
-Keep furnace filters clean - check and change your filter every month during heavy-use winter months to assist air flow so your system doesn't have to work harder to keep you warm.
-Seal your heating and cooling ducts. In a typical house with a forced air system, about 20 percent of the air that moves through the duct system is lost due to leaks, holes, and poorly connected ducts. Sealing and insulating ducts increases efficiency, lowers home energy bills and can often pay for itself in energy savings.
-Properly maintain your HVAC system. Just as a tune-up for your car can improve your gas mileage, a semi-annual or yearly tune-up of your heating and cooling system can improve efficiency and comfort. The federal government’s ENERGY STAR website (www.energystar.gov) can help you find a qualified individual.
For more information, visit www.ase.org.
December 21, 2011 4:06 pm
In light of recent tragedies nationwide involving tipped over appliances, The Consumer Product Safety Commission (CPSC) recently completed a review of various tip-over hazards that can occur in the home.
Families must be aware of leaving children unattended in the kitchen, even if the stove is turned off. Many accidents occur when children attempt to climb on top of a stove door causing the appliance to topple over. With senior citizens, the same can happen when they are leaning on it for support. If the stove is on at the time of the incident, the heat will only make injuries worse and risk of death greater. Most of the time, none of the appliances involved in these types of accidents were properly secured to the wall.
The CPSC recommends the following to prevent related tragedies in the future:
-Manufacturers should create better stability in their designs. Models should be able to support 100 pounds on an open oven door. Although this may require some major redesigns, the added safety bonus will benefit everyone.
-Manufacturers should design door hinges that lock in the open position should an oven start to tip forward.
-Install anti-tip devices that prevent an appliance from working unless they are properly installed.
-Appliances should be programmed to automatically shut off the heat should they begin to tip.
Consumers should be aware that these types of incidents can occur in their home. To prevent this from happening to you or your loved ones, be sure to secure your stove with tip restraints provided by your manufacturer. New appliances made after 1991 should have shipped with them included, but may or may not be pre-installed. The CPSC reports that it is not aware of a single injury or death caused by an appliance with tip restraints properly installed.
For more information, visit www.cpsc.gov.
December 21, 2011 4:06 pm
Opening gifts is a ton of fun. Opening the resulting bills is not. Yet, every holiday season millions of consumers use their credit cards to buy gifts when they don't have the cash.
During the next couple of weeks, those bills will start rolling in and a strong case of post-holiday remorse will begin to set in.
When faced with the post-holiday blues, debt can seem insurmountable. To help get a handle on the situation, heed the following advice:
• Realize that there are only two legal ways out of debt - cutting expenses or increasing your income. Decide which works for you and truly commit to it.
• Create a damage sheet. List the names of your creditors, amount owed each and current interest rates, then total it all up. Update that sheet monthly and tape it wherever you will see it regularly.
• Create a budget and a repayment plan. Track your expenses for one month so that you can be sure every expense is included.
• Periodic expenses can break a budget so allocate an hour each Sunday to address your finances. Staying on top of your expenses will help you stay in budget.
• Shelve your credit cards. Take them out of your wallet and leave them at home. In fact, store them with your damage sheet to remind you of your balances. If you have to use credit, don't charge anything you can't pay off within 90 days.
• Pay off the credit cards with the highest interest rates first.
• Establish a 2010 holiday savings account so that next holiday season, relying on credit won't be necessary. Factor it in as an expense.
• Take a good hard look at your spending habits. Credit is not an extension of your income!
• If you can't make a dent in your post-holiday debt, consider credit counseling from a reputable.
Treat this year's holiday charges as a learning experience and resolve to do better next year so that in January 2013, you can focus on starting the New Year debt-free.
Source: Money Management International
December 21, 2011 4:06 pm
According to State Farm Insurance, an average of a quarter-million families have their homes ruined and their lives disrupted each winter due to the freezing and bursting of pipes. Taking some simple precautions can save you the expense as well as the time of repairing burst pipes. The best way to prevent frozen pipes is to winterize your plumbing system.
To help keep frozen pipes from being a drain on your wallet, here is a series of tips for preventing or dealing with a frozen-pipe scenario.
To prevent your pipes from freezing:
• Cover faucets and exposed pipes with insulation, or wrap them with thick towels.
• Open cabinet doors. This allows heat to circulate and keeps interior pipes warm.
• Keep faucets running. A small trickle of water/constant drip is recommended.
• Secure basement doors, windows and crawl-space openings.
• Remove garden hoses from outdoor faucets.
• Open outside hose taps so water can drain.
• Apply electrically-powered heat tape. (Follow manufacturer's instructions or call a plumber.)
Homeowners should also locate the main water shut-off valve, and learn how to use it. This can come in handy if pipes freeze and burst.
To safely thaw frozen pipes:
• Turn off the water at the shut-off valve.
• Open the nearest faucet. This allows water to drain out as the ice melts.
• Heat the exterior of the pipe with a hair dryer. Apply heat slowly and don't keep heat in one spot.
• Do not attempt to thaw exposed frozen pipes with an open flame, such as an acetylene torch.
If immediate assistance or repairs are needed, it is recommended that you call a qualified plumber. By following these prevention tips, hopefully your pipes will remain unfrozen and usable throughout the entire winter season.
Source: Mr. Rooter Plumbing
December 20, 2011 4:04 pm
Kitchens are where family and friends come to cook, eat and socialize. With 2012 just around the corner, kitchen design trends for the new year are an industry-wide hot topic, as experts predict where kitchen design is headed and which materials will be in vogue.
Home design experts predict that 2012 is going to be an exciting year for kitchen design because homeowners want more creativity in their homes and are becoming more thoughtful in their decision-making.
To begin a kitchen overhaul, homeowners shouldn’t be afraid to dispose of anything from the last two decades, especially Old World kitchen styles with heavy molding. Instead, homeowners should embrace new materials, like countertops made out of quartz, glass and wood, which can vary in style, shape and color. As we move into 2012, the overall trend is to keep it simple, energy-efficient, and comfort-oriented. De-clutter, go natural, lighten up and make it work for you and your household.
"Green design" will also become a standard request this year. Designers recommend homeowners choose to use energy-efficient items like compact fluorescent bulbs because they use two-thirds less energy. For those who do decide to “go green,” work with a professional lighting designer who can help introduce modern technology fixtures and more energy saving items.
For more information about home design, kitchen renovations and upgrades, follow @FaceYourKitchen on Twitter.
December 20, 2011 4:04 pm
While retailers are busy trying to stimulate enough holiday sales to put them into the black financially, consumers are dreaming of a black Christmas, one that keeps them in the black on their personal ledger sheet.
Although Black Friday and Cyber Monday spending tempted millions of shoppers to part with some cash, or at least pull out the plastic, many have now not only returned to financial reality, but have also returned their purchases.
According to a November poll hosted on the National Foundation for Credit Counseling (NFCC) website, 40 percent of shoppers intend to spend zero on holiday purchases, while 51 percent plan on cutting back on what they spent last year.
Here are some last-minute tips to help avoid buyer’s remorse, whether that guilt comes a few days after shopping, resulting in returning the purchases, or in January when the bills start arriving.
• Don’t make impulse purchases. Resist the temptation to buy anything just to be able to mark it off your list. A thoughtless gift isn’t worth the paper it’s wrapped in.
• Make your shopping trips short by having a shopping strategy. Know what you want, where you’re going to get it, and how much you’re going to spend. Your goal is to get in and get out of the stores, thus limiting the temptation to spend.
• While shopping, take frequent breaks and track your spending. Staying on budget equals staying in the black.
• Resist paying steep rush shipping charges. It’s better to find an alternative gift than to spend as much in shipping as you did on the gift.
• If you can’t find the right gift, know that a gift card always fits. Further, the recipient can use it during the steep after-Christmas sales and maximize the value.
Also, play it safe and inquire about the return policy before you buy. If the store offers a gift receipt, be sure to include it with the package, thus making a return much simpler.
If your holiday spending has you seeing red, visit www.DebtAdvice.org for more information.
December 20, 2011 4:04 pm
The number of improving housing markets continued to expand for a fourth consecutive month in December, rising from 30 to 41 on the latest National Association of Home Builders/First American Improving Markets Index (IMI), released recently. The December list featured 20 new additions, including several major markets such as Washington, D.C.; San Jose, Calif.; and Toledo, Ohio. Meanwhile, nine smaller markets dropped off the list, primarily due to softer house prices.
The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.
New entrants to the list in December include the following:
Ann Arbor, Mich.
Fort Wayne, Ind.
Grand Forks, N.D.
San Jose, Calif.
"The increases we continue to see in the number and geographic diversity of improving metros are quite encouraging, and evidence of the fact that all housing markets are dependent on uniquely local factors," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. He noted that as of December, a total of 21 states and the District of Columbia are represented on the improving markets list—up from14 states represented in November.
"The December IMI results are very much in keeping with the latest government housing data and our own builder surveys, which have shown modest signs of improvement in certain individual markets where employment is gaining and distressed properties are not as numerous," said NAHB Chief Economist David Crowe. "These gradual improvements are now becoming evident not just in small, energy-producing metros that have previously dominated the IMI, but also in several larger markets and areas with more diverse economies."
The nine markets that dropped off the IMI in December include Alexandria, La.; Fairbanks, Alaska; Hinesville, Ga.; Houma, La.; Jonesboro, Ark.; Lima, Ohio; Pine Bluff, Ark.; Sumter, S.C. and Waco, Texas. All but two of these metros fell from the list due to softening house prices. The exceptions to the rule were Jonesboro and Waco, where declines were registered in employment and single-family housing permits, respectively.
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.
For more information, visit www.nahb.org/imi.