A Call for Disaster Insurance Affordability & Reform
March 15, 2010 by Victoria Stankard · Leave a Comment
According to the National Association of Mutual Insurance Companies “The high costs of recent natural disasters combined with the fear of future catastrophes have restricted homeowners’ insurance, reduced availability, and raised affordability issues in disaster-prone regions.”
The truth is the decision to buy homeowners insurance coverage for catastrophic natural disasters is not always a conscious one made on the part of many homeowners.
Most natural disasters, including hurricanes, earthquakes, floods, tornado’s, hailstorms, etc. are not covered by standard homeowner policies and many folks don’t even realize they’re not covered for such events, that is of course until disaster strikes and its too late!
Others, faced with sky-high premiums and policies with limited coverage, take the risk they won’t need insurance to rebuild, mainly out of financial necessity. Typically, the price for catastrophic insurance is shockingly high compared to the risk. For most homeowners, their location, financial situation and comfort level with risk has a lot to do with whether they can afford to do without it.
Availability and affordability of property insurance in coastal regions, for example, is mainly a function of risk. However, other factors including actions taken by government, can also affect the cost of insurance. States in catastrophe prone regions often impose price ceilings on insurers for coverage.
Government rate suppression is the preferred solution of many regulators and state legislators regarding the “property insurance affordability issue” in disaster prone regions. Rate suppression covers up an underlying problem – forcing insurance buyers in low-risk regions to pay inflated prices in order to subsidize the insurance costs of those in higher-risk regions.
Recently, the National Association of REALTORS® stated before two House panels that a more comprehensive national natural 
disaster policy is needed. Charles McMillan, past president of NAR, told Congress that it must improve the affordability of property insurance for natural disasters.
The NAR believes that a comprehensive natural disaster policy should include property owners, insurance companies and each of the different levels of government in preparing and paying for future catastrophic events.
McMillan outlined the following criteria for creating a federal policy:
- Acknowledge personal responsibility of those living in high-risk areas to purchase adequate insurance.
- Ensure transparent and comprehensive insurance is available and affordable at premiums reflecting risk.
- Provide owners incentives to undertake mitigation measures when appropriate.
- Acknowledge the importance of building codes and smart land-use decisions, stressing the importance of enforcement at the state and local levels.
- Reinforce the proper roles of all government levels for investing and maintaining critical infrastructure, like levees, dams and bridges.
- Recognize the role of states as appropriate regulators of property insurance and the role of the federal government in cases of mega-catastrophes.
McMillan went on to say that “All reasonable proposals should be considered in creating a national policy to proactively address the inevitable, rather than waiting for the next crisis to occur and rely upon taxpayer-funded bailouts.”
Charlotte NC Real Estate Homes for Sale
If you’re looking to buy a home in the Charlotte metro area, you need Leigh Brown on our team! Leigh is the leading real estate broker in the Charlotte metro area. You can reach Leigh by filling out her online contact form or give her a call at (704) 688-5005 – (866) 440-7136 toll free.
Article Sources:
National Association of REALTORS®
National Association of Mutual Insurance Companies
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Foreclosure Growth Rates Appear to be Slowing Down
March 12, 2010 by Victoria Stankard · Leave a Comment
The heady pace of foreclosure growth we’ve witnessed over the past several years appears to be slowing down. According to RealtyTrac Inc., the number of homeowners facing foreclosure last month grew 6% from the same time last year, which is the smallest annual increase seen in four years.
However, there are concerns regarding the large number homeowners still being evaluated for help under loan modification programs. More than likely, a lot of these same people will lose their homes, resulting in a new round of foreclosures in the later part of 2010.
In February of this year, banks across the nation repossessed approximately 79,000 homes, which was 10% less than January, but still up 6 % from February last year. According to RealtyTrac, approximately 2.8 million households were faced with foreclosure last year. The number of foreclosures is expected to increase to more than 3 million homes this year.
Typically, homes in foreclosure are sold off by banks at rock bottom prices, causing property values in the surrounding area to drop. Cities are also affected, loosing property tax dollars from those same homes sitting empty on the market.
The Mortgage Bankers Association sent out an optimistic report last month, stating the percentage of homeowners who had missed just one mortgage payment fell to 3.6% in the 4th quarter, compared to 3.8% the third quarter. Although the decrease was definitely good news overall, foreclosure rates were still at all-time record highs.
The highest foreclosure rates in the country were in Nevada, even though foreclosures were down in Nevada by 7 % from January and down more than 30% from last year. Following Nevada in foreclosures were the states of Arizona, Florida, California and Michigan.
According to Rick Sharga, a senior vice president for RealtyTrac, “It’s premature to declare victory just yet.” He went on to say that “If this is the beginning of a slowdown in growth rates, that would be a good thing.” However, It’s estimated that current unemployment rates and/or reduced household income will continue to plague our economy and be the main cause of foreclosures in the coming year.
Charlotte NC Avoid Foreclosure Expert
Leigh Brown is a Certified Distressed Property Expert® (CDPE) and the leading avoid foreclosure expert in the Charlotte metro area. If you or someone you care about is facing foreclosure, Leigh Brown offers the most most qualified avoid foreclosure help available!
You can reach Charlotte’s number one foreclosure expert, Leigh Brown, by filling out her online contact form , or give Leigh a call at (704) 688-5005 or toll free at (866) 440-7136.
Leigh Brown can help!
Article Sources:
RealtyTrack
Mortgage Bankers Association
CNBC
Yahoo News
FHA Upfront Mortgage Insurance Premium Increase April 5th, 2010
March 8, 2010 by Victoria Stankard · Leave a Comment
It has never been a better time to buy a home with so many exceptional values on the market, government tax credits and historically low interest rates. However, there are some changes headed our way that will have an affect on these favorable conditions.
Top heavy home inventory is shrinking more and more each day as buyers take advantage of low home prices. The First-time Homebuyer Credit is also set to expire on April 30th 2010. Last, but not least, for those looking to buy their first home with an FHA backed loan, premiums on FHA upfront mortgage insurance will soon be going up.
According to Mortgage letter 2010-2 issued by the U.S. Department of Housing and Urban Development on January 21, 2010, there 
will be an increase in upfront premiums for FHA mortgage insurance for case numbers assigned on or after April 5th, 2010. The Federal Housing Authority is the only government agency that runs on its own self-generated income and that costs taxpayers nothing. The program is funded by insuring home loans and charging borrowers who qualify for an FHA loan, upfront mortgage insurance (MIP).
FHA loans are great for first-time buyers because they only require 3.5% of the price of the home as a down payment instead of the standard 20%, which is often hard to come up with. FHA mortgage insurance provides lenders with protection in case a homeowner defaults on their loan and guarantees they will pay a claim to the lender in the event of a default. Loans must meet certain requirements established by FHA in order to qualify for insurance.
As of April 5th, FHA insured loans for home purchases and non-streamline refinances will increase from 1.75% of the base loan amount to 2.25. An increase of .5% may not seem like a lot, but during these tough times, every cent counts! A refinance of an FHA underlying mortgage will increase from 1.5% to 2.25%.
Charlotte NC Real Estate Homes For Sale
If you are considering purchasing a home in Charlotte NC, now’s the time to get the ball rolling and save money. The FHA upfront mortgage insurance premium increase goes into effect 25 days before the “in contract” deadline for the First-time Homebuyer Credit hits.
Leigh Brown is the leading real estate broker in the Charlotte metro area. Over the years, Leigh has helped many first- time home buyers find great deals on Charlotte NC real estate homes for sale. She will walk you through the home buying process every step of the way!
You can reach Leigh by filling out her online contact form or give her a call at (704) 688-5005, or (866) 440-7136 toll free.
How You Can Prevent Delays in the Mortgage Loan Modification Process
March 5, 2010 by Victoria Stankard · Leave a Comment
A mortgage loan modification is when the lender reworks the terms of your existing home loan to make the monthly payments more affordable. Lenders will lower the interest rate, extend the terms of the loan, reduce the principal (although rare) or a combination of any of the above to get the payment down.
A mortgage loan modification may tarnish your credit a bit, but it’s a whole lot better than losing your home and dealing with the ensuing fallout of a foreclosure. However, as more and more financially distressed homeowners seek out loan modifications to avoid foreclosure, not all lenders have the staff or where-with-all to handle the load.
Consequently, loan modifications can drag out for months. On average it takes approximately 40 to 50 hours of ‘grunt work’ and ‘wait time’ to get through the mortgage loan modification process from start to completion and a lot of that time is spent listening to ‘muzac’ while on hold with your lender!
Avoiding Mortgage Loan Modification Delays
Here are a few things to keep in mind that can expedite the loan modification process: 
When making initial contact with your lender over the phone, be prudent about disclosing your economic condition. Be honest and don’t embellish or understate you financial situation. It’s best to get the application and paperwork from your lender and ’submit everything in writing.’ Next, insist that your lender produce the original note (with your signature) that proves you actually owe them the loan.
Everything should be recorded and kept in a file including all transactions, any receipts for those transactions and all conversations with your lender. Keeping good records and making copies of original documents will help avoid any unnecessary delays in the loan modification process.
Most lenders have their own proprietary financial forms. However, if you take the time to prepare your personal financial statement ahead of time, you’ll have all the information ready for your lender. Lack of preparation on your part can slow down the loan modification process if your lender has to spend time calling you for missing information.
Worksheet Information
The information you will need to be provide in a worksheet should include:
- Current income including ‘other income’ such as child support, welfare etc.
- Total assets including bank accounts (checking and savings), investments, real estate, IRAs, 401(k), stocks, bonds, etc.
- Total liabilities such as your monthly bills, any tax liens, existing loans and/or medical expenses.
You’ll want to keep good records of all supporting documents, including bills and receipts, with your financial statement in case you are required to back up your statement with proof.
Waiting to find out if you’ve been approved for a loan modification can seem like an eternity. But, if you do your part, your chances of achieving a positive outcome, in the time you need it to happen, will greatly improve.
Charlotte NC Avoid Foreclosure Expert
Leigh Brown is a Certified Distressed Property Expert® (CDPE) and the leading avoid foreclosure expert in the Charlotte metro area.
If you or someone you care about is facing possible foreclosure on their home or investment property, you owe it to yourself to enlist the expertise of Certified Distressed Property Expert® Leigh Brown.
With Leigh Brown on your team, you have the most qualified avoid foreclosure help available! Leigh can be reached by filling out her online contact form , or give her a call at (704) 688-5005 or toll free at (866) 440-7136.
Leigh Brown can help!
Sources:
RealtyTimes
Trulia
First-Time Homebuyer Tax Credit – Only Two Months Left
March 3, 2010 by Victoria Stankard · 1 Comment
With home prices and interest rates at all time lows and only two months left before the First Time Homebuyer Tax Credit expires, many folks are taking action and looking to buy a home. The $8,000 tax credit, extended and expanded to include current homeowners in 2009, expires on April 30th, 2010.
Qualifying for the Tax Credit
In order to qualify for the credit, homeowners must be under contract on a home by April 30th, 2010 and close on the home by June 30th, 2010.
Current homeowners who have signed a contract to buy a home, on or before April 30th, qualify for a dollar-for-dollar deduction on their taxes, equaling 10% of the home up to $6,500. First time home buyers (who haven’t owned a home within the last three years), can get up to $8000 tax credit. Married couples must both qualify as a first time buyer to get the tax credit.
To claim the tax credit, you will need send (no electronic fillings allowed) the IRS Form 5405 and a copy of the HUD-1 settlement statement. To find out more about First-Time Homebuyer Credit filing requirements, visit IRS.Gov.
Crunch Time
Those looking to buy a home must act quickly if they want to take advantage of the tax credit. However, there are still many homes available and time to get it all done before the April 30th cut off date if you act quickly.
According to the National Association of Realtors (NAR), on average, home buyers spend about 12 weeks looking for a home, which means that if you haven’t already started serious home shopping, you’ll have to step up the pace if you want to meet the tax credit deadline.
Know the Market You’re Looking to Purchase in.
Even with incredibly low interest rates and home prices, some buyers question whether they should wait and see if home prices drop further. It’s true that in some areas, home prices may continue to fall, but they are no longer ‘plummeting’ in most markets across the country. According to Patrick Newport of HIS Global, “It’s a good time to buy, but it’s still a really difficult market.”
Now more than ever, you need to know the market you’re looking to purchase in. Start by checking to see if inventory levels are high and increasing at Trulia and if foreclosure filings are on the rise at realtytrac. Even with the tax credit incentive, it may be more prudent to wait until the area you want to buy in is showing a clear indication of stabilization.
Charlotte NC Real Estate Homes For Sale
If you’re in the market to buy a home in Charlotte NC and take advantage of the First-Time Homebuyer Tax Credit before the April 30th cut-off date, Leigh Brown can help. Leigh is the leading real estate broker in the Charlotte metro area and has helped many first time home buyers find the perfect home in the right neighborhood for their lifestyle, budget and needs.
You can reach Leigh by filling out her online contact form or give her a call at (704) 688-5005, or toll free at (866) 440-7136.
Sources:
Baltimore Sun
CNN Money
Red, White and Blue Press
Leigh Brown, aka The Real Estate Diva, is a native of Concord NC in the Charlotte area. She grew up on a farm at the edge of Cabarrus County, still goes to the same church she grew up in (home of the world famous Mallard Creek Barbecue!), but has become a leader in area real estate through constant learning and continually upgrading technology to better serve buyer and seller clients. Leigh does indeed have a reputation as a barracuda-when it comes to protecting client interests. Her softer side is reserved for her husband and two kids who provide a constant source of joy-and entertainment
