The FHA 203k renovation loan program provides funds for both the purchase and renovation of a home packaged into one mortgage loan. Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors.

...Click Here for more info and details...

Three authorities on FHA and its loan products respond to the most frequently asked questions from REALTORS®.

• To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
• Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
• Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
• The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
• The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
• A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

Source: Bankrate.com, Marcie Geffner (01/21/2010)

It’s possible to trim your property taxes by challenging the assessed value of your home. But making a convincing case against your real estate assessment, the basis for your property tax, requires doing a bit of homework first. Initial research can be done online or by phone over two or three days, but the process can stretch out for months if you’re forced to file a formal appeal.    Read More...

To claim the credit on your 2008 taxes, you must file an amendment to your 2008 return. To do this you will need two forms: Form 1040X  for filing an amended return; and Form 5405  for the home buyer tax credit.

Applying the Home Buyer Tax Credit to Your 2009 Return

To claim the credit as part of your 2009 return, you will need: The standard Form 1040 and Form 5405 for the home buyer tax credit.

....Read More

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.  ....Read More

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.  ...Read More

-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.  ...Read More

Part 5 of 5

Option # 5 Deed In Lieu of Foreclosure:

A deed in lieu of foreclosure occurs when the borrower agrees to trade the property to the lender in exchange for the cancellation or the note. This foreclosure alternative is more likely to work in states where there is a long foreclosure timeline. The lender will be able to get the property much sooner than going through the foreclosure process, which lessens the probability of the property being in disrepair as well as eliminates the lender’s cost to foreclose. Like the mortgage workout, sellers who are interested in a deed in lien of foreclosure should consult their attorney or contact the lender directly. ... Read More

Part 4 of 5

Option # 4 Short Sale:

A short sale is a situation in which the seller owes more money on the loan than the sale of the property will likely produce on the market and the seller is unable or unwilling to bring money to closing. In a short sale, the lender has not yet foreclosed on the property, which provides a window of opportunity for the owner to sell the property in order to at least partially get the lender what is owed. ...Read More

Part 3 of 5

Option # 3 Lender Workout:

Lenders often will work with distressed homeowners to help them keep their homes by reducing or rolling back interest rates; forgiving back payments or adding them to the loan amount, or possibly recasting the entire loan and wrapping all fees into a fixed-rate mortgage.  ... Read More

Part 2 of 5

While homeowners who are at risk of default or who have defaulted on their mortgage may feel that “walking away” is their only solution, there are options available to them. Real Estate professionals can help outline the options; you must seek legal and tax advice. ... Read More

Pre-Foreclosure:

Anytime homeowners are behind in their mortgage payments, they are considered in “pre-foreclosure”. The length of what is considered pre-foreclosure varies depending on state laws. During this time, the homeowner is initially notified of the mortgage payment default. This contact typically occurs within 30 days following the default on a payment. Before placing a lien on the property, ... Read More 

By:  Teri Danahey, Accredited Staging Professional (ASP), REALTOR®

Daniel Fevre, REALTOR®

PRUDENTIAL NEW JERSEY PROPERTIES

Real estate agents will tell you that buyers often decide “at the curb” whether they will like a home on the inside.  If the curb appeal is too disappointing, there are many instances where the buyers don’t even go in.   Here are some tips on how to make a home’s curb appeal irresistible with paint color..

The two most important factors when choosing exterior paint color are:

·        The neighborhood

·        The style of the home

The Neighborhood

Buyers favor homes in neighborhoods that have a cohesive appearance because it suggests community spirit, common goals and like mindedness.  A peaceful street of homes punctuated by one house with a garish paint color is disturbing and reduces the overall appeal of the neighborhood.  “Fitting in” is a critical element of curb appeal and adds value to the bottom line.   (You can always express yourself on the interior of the home!)

The Style of the Home

There are no ‘forbidden” house paint colors (except possibly black), but there are colors that just don’t seem to fit the style of a house.  For example, a traditional New England salt box style home would look odd painted pink.  Yet, a Mediterranean style stucco home in a warm climate may look right at home painted pink or coral.

Mid-20^th Century Modern homes look best with one subtle color over 90% of the house and minimal, monochromatic trim accents.  In comparison, ornate Victorian or Carpenter Gothic style homes look best when the characteristic trim is accented with as many as 6 different colors of paint.  Research the home style to see what colors complement the style of the house.  There are some excellent online tools in the personal color viewer at www.BenjaminMoore.com and architectural styles at www.Behr.com

As a rule of thumb, houses that take their color cue from their immediate environment will look most at home, such as:

• Homes in the northern climates tend to look best with a muted palette since nature dims the surroundings for much of the year.  Consider these colors:

•  
  • Benjamin Moore – Stratton Blue – HC-142
  • Benjamin Moore – Monroe Bisque – HC-26
  • Sherwin Williams – Simple White – SW 7021

• Homes in southern climates tend to look best with a brighter palette since there is abundant sunshine and vibrant blooming for much of the year.  Consider:

•  
  • Sherwin Williams – Faint Coral – SW 6329
  • Benjamin Moore – Camoflage – 2143-40
  • Benjamin Moore – Windham Cream – HC 6

• Seaside homes in northern climates look best with muted water and fog colors; coastal homes in southern climates look best with clear water and sand colors.  Consider:

•  
  • Benjamin Moore – Silver Marlin – 2139-50
  • Benjamin Moore – Saybrook Sage – HC-114
  • Sherwin Williams – Take Blue – SW 6513

• Homes in woodsy areas look great with a natural palette; homes in more urban areas can look nice with fresh colors.  Consider:

•  
  • Sherwin Williams – Morning Sun – SW 6672
  • Sherwin Williams – Restoration Ivory – SW 6413
  • Benjamin Moore – Montgomery White – HC-33

• White is the one “safe” color that works everywhere on nearly every style of home.

As people embrace eco-friendly products and a more natural lifestyle, we see these preferences for the colors of trees, earth and stone that almost make a home look as though it grew from the ground.  Apply the most muted tones of greens, browns and grays in the northern climates and the brighter tones of greens and browns including beiges for the southern climates.  These are the color choices used by new home builders; older homes painted the same current colors as newer homes will knock years off the appearance of the house.  Examples:

• Sherwin Williams – Mega Greige – SW 7031
• Benjamin Moore – Rockport Grey – HC-105
• Benjamin Moore – Saybrook Sage – HC-114

Choosing the Palette

Consider the roof color when selecting the primary house color.  Homes look most interesting with this general design principle:

• 60 percent of your paint color will go on the body
• 30 percent of your paint color will go on the trim
• 10 percent on feature items such as the front door or porch elements

Most homes do well with this principle but it is wise to alter the proportions when painting “extreme” styles like a Mid-20^th Century Modern or Victorian.  

In general,

• Smaller homes look larger with a greater percentage of one color
• Homes with brick or stone look larger when the body color is similar with the brick or stone
• Monochromatic schemes tend to look more refined; contrasting schemes tend to look more cheerful

About Trim

Trim and trim color defines the house and distinguishes it in the neighborhood.  Again, consider the roof color when choosing a trim paint color in order to pull the body and roof together as well as highlight notable features.  Select just one trim color or trim color family.

• Paint trim a color similar to the body to simplify the style or enlarge the appearance of the home.
• Paint trim an accent color to highlight interesting details such as roofline, windows, shutters, etc. 
• If there is an unattractive trim or distracting part of the house, you can minimize it by painting it the same color as the body.  
• If there is a detail worth noting, this is the time for a trim or accent color.

The “Invisible” Trim

Invisible trim are things like

• Window frames
• Soffits
• Door jambs

These are items that the eye skims over and are seldom noticed unless you get it wrong.  Like most interior ceilings, these items are usually best painted white.  However, if the body of the house is a muted color, stark white trim would be too bold so add 15% of the body color to the white to return those items to “invisible”.  Craftsman style homes are heavy with wood trim and muted tones so a heavier tint (30% or more) of the body color may be necessary to retain the characteristics of this earthy style of home.

Never paint window frames the same color as a dark shutter, for example.  This treatment looks like bad eyeliner and the result is a distracting, patchwork of small windows.

What to do about the garage door(s)?

• The sheer size of a white garage door will create an undesirable focal point and imbalance unless the house has a lot of white trim,
• If the garage door is closer to the curb than the front door, the garage door should be painted the same color as the body or a slightly deeper tone of the body to recede it and enable the front door to be the focal point  
• It is out of style to accent the raised panels or other door details with paint.
• Wood stain or a wood look is a good, neutral look for garage doors.  

Accent colors - the final 10%

The most interesting color choice will be for an accent color, used on the front door, for example.  Have fun with this and choose a welcoming, standout color such as eggplant, plum, cranberry, maroon, persimmon, copper, marine blue, teal, peacock blue or forest green.  A rich wood stain is also a good look.

The most important thing about an accent color is that it be used sparingly.  The second most important thing is that the accent color should be concentrated in one area so the eye doesn’t bounce around and dilute its impact. .   

Getting it Right

Many paint manufacturers have assembled color combinations and some websites have virtual-design tools that can help you make a decision.  Definitely ask for help from color experts often found in high volume paint stores.  Note:  a painter or how-to-paint expert found in high volume paint stores may not be a designer so take care where you get your color advice.    

• The greater the area devoted to one color, the more intense it will be so if the goal is a sand color, look at color chips that appear lighter than the intended result. 
• Buy test quarts of prospective colors and apply it in 1 foot square samples on both the sunny and shady side of the house. 
• Live with the colors for a few days before deciding.  

Finally, make the most of the color selection with the best possible paint job.  This means adequate preparation, good tools and top quality paint that will yield excellent curb appeal for years.  

See these excellent resources:

• See the personal color viewer on the Benjamin Moore website (http://www.BenjaminMoore.com).  Also find a full description of architectural styles with companion color suggestions.

·         Sherwin-Williams:  check out the Virtual Color visualizer tool.  www.SherwinWilliams.com

·         Behr:  check out the Color Smart tools and inspiration library.  www.behr.com

Comments:  Please contact Teri Danahey at Teri.D@PrudentialNewJersey.com

See also:

 http://www.NewJerseyBestHomes.com

 http://www.NJRealEstateMarketReport.com

 http://www.NewJerseyFirstTimeBuyer.com

NJHMFA Prefund Tax Credit Loan Program (TCLP) Still Up &Running

The NJHMFA's Prefund Tax Credit Loan Program (TCLP) is still available for qualified borrowers.  The Prefund program lets first time home buyers borrow at 0% interest up to $5,000 of their anticipated federal first time home buyer tax refund to cover downpayment and closing costs.  There has been inaccurate information circulating that the NJHMFA Prefund has been completely shut down pending a final determination by FHA about the insurability of FHA first mortgages with a subordinate Prefund second mortgage.  The Prefund program is not tied specifically to the FHA insurance program.  The NJHMFA is looking forward to FHA's authorization so that the Prefund program may be used with FHA first mortgages.  FHA claims that the FHA Mortgagee Letter 2009-15 was a "draft" and was erroneously posted on their website and are in the process of reviewing and approving it.  Until the approval is issued Lenders can not use Prefund with a FHA first mortgage.  If a borrower can be qualified through the conventional market with a subordinate Prefund loan and private MI is obtained for the first mortgage, these loans can be registered with NJHMFA.

PAINT COLORS FOR HOME STAGING

By:  Teri Danahey, ASP/REALTOR®

Daniel Fevre REALTOR®

PRUDENTIAL NEW JERSEY PROPERTIES

One of the best things a homeowner can do in a remodeling project is to paint the walls in a current color.  Not only does it freshen the appearance of walls but it updates the entire space for about the same money as a new throw pillow!

It’s no wonder then that home stagers look carefully at the wall colors and condition when staging a home for sale.  Vivid red dining rooms, princess pink and marine blue kids’ rooms are risky choices when appealing to future buyers.  Home Stagers will strongly suggest that bold colors be changed to popular, but neutral hues.  In the process, rooms frequently look larger when walls don’t jump forward with strong color. 

Wall Preparation

Professional painters spend 80% of the time preparing the walls for painting and 20% of the time applying the paint which is why professional jobs look so good.  Applying primer paint (www.Kilz.com) over a vivid color will assure even coverage and color true to the paint sample. 

Finish Choices

Most interior walls look best with a flat paint finish.  In addition, flat finish paint can disguise small wall imperfections.  A flat finish in a high quality paint is more washable than in past years making it an acceptable choice even for kid’s rooms and high traffic areas. 

Woodwork, on the other hand, looks best with a glossier finish either semi-gloss in more formal areas or high gloss.   

Low VOC (volatile organic compound) paint is an eco-friendly choice that is much appreciated by buyers today to reduce the indoor air pollution and can be a “green” selling feature.

Planning the Color Pallet

Interesting woodwork such as crown or base molding, built-ins, door and window frames or architectural room details deserve to be highlighted but it doesn’t have to be a high contrast to get those elements noticed.  White remains the “go to” color for woodwork and ceilings because it is classic and crisp.  If the wall color is a muted neutral, however, the ceiling and woodwork could be white toned down with 15% of the primary wall color to give a softer, more cohesive look.  If there is a natural accent wall such as surrounding a fireplace, for example, some drama could be created with a darker version of the primary wall color.  Never paint ceilings, crown or base molding or door and window frames a darker color than the walls when staging a home for sale. 

Fail-Proof Colors for Home Staging

Here is a list of the most popular, neutral paint colors from two paint leaders.

Benjamin Moore – check out the Pottery Barn Colors and the giant samples available from Benjamin Moore dealers.  http://www.BenjaminMoore.com

Sherwin Williams – check out the Virtual Color visualizer tool.  http://www.SherwinWilliams.com

:

Things to Remember:

• The paint color will look darker and/or more intense on the wall than the paint sample.
• Rooms with a bright, southern exposure can handle a deeper tone than a room with a dark, northern exposure
• Paint the ceiling first, then the walls
• Buy high quality paint and the right tools for the job. 

Comments:  Please contact Teri Danahey at Teri.D@PrudentialNewJersey.com

www.NewJerseyBestHomes.com   www.NJRealEstateMarketReport.com

How to Overcome 4 Common Staging Challenges

Challenge 1: Owners don’t want to change their decor. “You can’t force them to do it. You have to show them the value,” Matzke says. To make sellers more open to staging, present it as a service you do for every client. That is, you’re not singling them out. “I use myself as an example,” Matzke says. “I tell them I’d also have to remove art from my house to sell it so that the listing would appeal to the masses.” Adds Callahan: “Let sellers know you need to protect grandma’s antique bureau by putting it in storage so that nothing happens to it.”

Challenge 2: The listing has languished on the market for months before the owner or salesperson calls a stager. “Stage the house right before it’s listed,” Matzke says. Otherwise, it may lose its selling momentum.

Challenge 3: A confused layout makes the home seem cramped and unlivable. Multifunction rooms (such as those with an eating area, TV hookup, fireplace, and sitting area) are often confusing to buyers, especially when vacant, Callahan says. “People wonder, ‘Where is my couch supposed to go?’” Stage those rooms to show buyers the possibilities.

Challenge 4: A vacant home seems cold and uninviting. It’s important to warm up an empty home, Callahan says. You may need to rent some furniture, but don’t feel you have to go nuts in terms of expense. “You’re selling the home, not the furniture,” she says.

Teri Danahey, ASP/REALTOR®

Daniel Fevre REALTOR®

PRUDENTIAL NEW JERSEY PROPERTIES

Comments:  Please contact Teri Danahey at Teri.D@PrudentialNewJersey.com

www.NewJerseyBestHomes.com   www.NJRealEstateMarketReport.com

The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.

The loan, offered as part of NJHMFA's "Prefund" program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.

The cash advance is available to first-time home buyers who:

• Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
• Are qualified for the tax credit offered as a part of the federal stimulus program
• Pledge to apply the proceeds of their tax credit to repay the cash

View the full details of the NJHMFA's First-Time Home Buyers Tax Credit Loan Program (TCLP).

From New Jersey Association of REALTORS® (NJAR®).

Teri Danahey, ASP/REALTOR®

Daniel Fevre REALTOR®

PRUDENTIAL NEW JERSEY PROPERTIES

Comments:  Please contact Teri Danahey at Teri.D@PrudentialNewJersey.com

www.NewJerseyBestHomes.com   www.NJRealEstateMarketReport.com

Teri Danahey, ASP/REALTOR®

Daniel Fevre REALTOR®

PRUDENTIAL NEW JERSEY PROPERTIES

Comments:  Please contact Teri Danahey at Teri.D@PrudentialNewJersey.com

www.NewJerseyBestHomes.com   www.NJRealEstateMarketReport.com

1. They don’t ask enough questions of their lender and miss out on the best deal. 
2. They don’t act quickly enough to make a decision and someone else buys the house. 
3. They don’t find the right real estate professional who is willing to help you through the homebuying process. 
4. They don’t do enough to make their offer look good to a seller. 
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years. 

Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com)

Teri Danahey, ASP/REALTOR®