During these difficult times many homeowners aren’t paying HOA fees. No one wants to enforce other neighbors to pay past fees, but it’s essential for a community to stay on top of this. The reality is when one homeowner isn’t paying their share of the HOA the others have to pick up the slack. A bad misconception many home owners have is the HOA is a profit center for the community. It isn’t by a long shot. Just a few homeowners who stop making HOA payments cut into an association’s budget quickly.

Nationwide, non-payment of HOA fees is among the top problems facing condo and single family homes says Thomas M. Skiba, chief office of Community Associations Institute in Alexandria, VA. When too many homeowners stop paying lenders may become unwilling to make mortgages or refinance properties in the community. Fannie May, for example, won’t guarantee loans in condominiums where more than 15% of the homeowners are 30 days or more overdue on HOA fees.

HOA committees must act fast to collect overdue HOA fees. Work with distressed homeowners with a payment plan. Seek help from experts about your collection options as your bylaws may govern. Consider taking any community privileges away like, fitness, pool and tennis. If a proper lease is in place you can make the renters pay the HOA direct once it becomes delinquent. Last but not least put a lien on a home that’s delinquent.

It’s now required for a bank or lending institute to pay HOA fees from the day of foreclosure to the day it re-sales. Any prior fees owned are not collectable from the bank or lending institute. However, the HOA can peruse the old homeowner for any delinquent HOA fees as a personal debt. Depending on your bylaws HOA’s may be able to garnish wages or sell back HOA fees to collection agencies.

In this state when you have a mandatory HOA it should be disclosured in the Purchase and Sale Agreement Exhibt Community Association Disclosure and or Sellers Disclosure. Every buyer signs documents at closing acknowledging they know of the mandatory HOA fees and agree to abide by its bylaws. HOA committees have no choice but to enforce them. This helps assure a stable community in many ways.

More than 20% of Americans do at least some of their work at home, so home offices are an attractive feature for many homebuyers.

If you’re one of the more than 20% of Americans who do some or all of their work at home, a comfortable, functional home office is a must-have. And it’s a feature that’s growing in popularity: When the National Association of Home Builders asked builders, manufacturers, and marketing experts what features would be important to future home buyers, 94% said a home office would be “critical” or “very critical.”

Still, when it comes to adding value, a home office ranks last among the 21 midrange projects analyzed in Remodeling Magazine’s annual Cost vs. Value report. Converting a 12-by-12-foot bedroom into an office costs a national average of $28,375 and recoups $13,648 at resale, for a 48% return on investment, according to the 2009-2010 report. Construction costs include custom cabinetry and work surface, wall-mounted storage, a wiring upgrade, and new floor and wall finishes.

Regionally, returns varied only slightly, with the highest rate of return, 56%, in the Pacific region, and the lowest, 41%, in the upper Midwest.

National average cost to convert an existing 12 x 12 room into a home office:

Job cost: $28,375

Resale value: $13,648

Cost recoup: 48.1%

Regional info: South Atlantic

Lots of changes were announced this week in regards to FHA Mortgages.

FHA is changing the upfront funding fee from 1.75% to 2.25%. You’ll still be allowed to add the funding fee to your mortgage. This will not affect the buyer’s monthly payments very much at all.

Credit scores less than a 580 will now be require to have a minimum of 10% down, this is up from 3.5%. Not really a big change as most banks currently require a minimum of a 640 score, so this shouldn’t be that big of a problem.

FHA has changed the seller’s contribution for buyers closing cost and prepaid’s. Now the seller’s contribution cannot exceed 3% of sales price, it was 6%. The closing cost is usually about 3% of the mortgage amount. Buyers will now have to fund the prepaid’s which are approximately 1% of the purchase price. This change shouldn’t have little effect on the market.

A major change is FHA will no longer do spot approvals for condos. This is a major problem for the condo market. Many condo buildings/communities are not currently FHA approved. We used to be able to get a spot approval. If the community met the FHA approval guidelines then it was spot approved. This procedure will no longer be allowed. The big picture for condos isn’t looking good right now. Today any condo purchase that’s mortgage is headed to Freddie Mac and Fannie Mae now requires a minimum of a 20% down payment. FHA is the only program with a minimum of 3.5% down payment. This is going to have a major impact on condos. We’re hoping FHA changes their policy in regards to this new ruling.

The condo market in Atlanta has been very tough the last few years. The new lending guidelines is going to create a lot more problems. Many condo owners don’t have the option to rent due to HOA rules. Condo HOA’s can cap the rentals to as little as 15% of the total units. Lenders will not lend money if the total rental to owner occupancy ratio is great than 30%. I feel you’re going to see more distressed condo situations in the coming year as money tightens for a potential buyer.

I want to be sure people understand that townhomes are not affected by the FHA changes the same as condos. If you don’t know the differences between a condo or townhome give me a call. I also have access to the FHA Condo Approval website. Call me if you want to know if your condo is currently FHA approved.

On Wednesday, October 21st, the National Association of Mortgage Brokers used this petition hvccpetition.com to help convince the House Financial Services Committee to pass an amendment that will finally put an end the mess that HVCC has been making of the real estate and lending industries. More than the 102,000 signatures on the petition, it was the pace at which the petition is growing and the HVCC horror stories signers included with their electronic signatures. Now more than ever we need everyone to rally behind this cause to make absolutely certain it continues to gain the momentum necessary to make it through the House and Senate votes that are forthcoming. Please, please, Please, sign this petition if you haven’t done so already and more importantly, send it to everyone you know in any sector of the real estate and lending industry as well as to all the current, past and future clients in your database. The new petition website makes it abundantly clear how all homeowners are losing equity and being harmed directly by HVCC as well as how it is blocking any chance at the real estate recovery our economy needs so desperately. Everyone you send to hvccpetition.com will be indebted to you for looking out for their best interest. We won the first of three battles which is more than anybody thought could happen and if we get serious and rally together now for one last massive push we should be able to put HVCC behind us forever. Thank you for your time, effort and support.

Short Sales are when a lender or lenders accept the sale of a property that nets less than the payoff amount. The main three things an owner has to show is a hardship, behind in payments and a monthly P & L showing all your bills are more than what you make. A few common hardships are health, lose of job or income, relocation due to job or family illness. Naturally there can be other hardships, and they are each weighed individually. Any home that cannot go through a judicial foreclosure is a great candidate for a short sale. I had one of these in the Above The Four Seasons Hotel condos. It’s not at all easy to get the bank to except short sales. Do not just stop paying your monthly payments thinking you can get a short sale approved. Banks will first try to do loan mortifications before they will open a short sale file for consideration.

I’m a Loss Mitigation Certified Agent! I’ve been involved with shorts sales for over 2 years and it’s a very fast changing business day to day. It’s not for the average agent and it’s not for buyers that have to close by a certain date. Some banks are much faster than others in accepting or countering short sale offers. I currently have one that’s been before the bank since April 24th and seems to be in nowhere land. Recently another was countered in seven days. Naturally all short sale sellers are expecting the bank to forgive the balance, but banks do have the right to ask for a promissory note for any short fall. You will also receive a 1099 tax form on the short fall as income. It is possible to get the 1099 waived with the right circumstances.

In the last few weeks things have really changed and I foresee short sales becoming a bit hard to get approval. FHA has new guide lines that will limit shorts sales for that type of mortgage. Fannie Mae the largest mortgage holder released guidelines in the last few weeks that will also change things.

If you want to know more about short sales please contact me. I’m a qualified agent and that can answer your questions and pre-qualify you for a short sale. I want to warn you there are agents leading people down the wrong path. Keep in mind you have to have a documented hardship to even get past go!!

The Georgia Realtor Magazine just published that of all the homes sold in 2008 only thirteen percent sold with out the assistances of an agent. Six percent of them knew the buyer prior to selling their home.

Being pro-active I contact FSBO’s every day. Most are very nice people, but some must sprinkle gun powder on their cereal. I truly wish them the best! They can be tough on me in the beginning, but seem to soften over time! They’re great leads for me as the majority of them end up listing with a realtor after about 30 days as a FSBO.

A misconception FSBO’s have is it’s easier to market a home for sale because of the internet. But you cannot support this theory with any data. Actually the data shows something different. The number of successful FSBO’s hasn’t grown in several years, showing the internet isn’t making it easier for them to sell homes. Considering eight-nine percent of home buyers in 2008 started their home search on line, FSBO’s aren’t attracting the buyers on the web in growing numbers.

Honestly I feel FSBO’s lost one of the best marketing tool’s they ever had….the Atlanta Journal & Constitution. The Saturday and Sunday Weekend Addition gave equal opportunity to all willing to pay for it. Today the AJC is struggling to attract front page readers. Some may not agree with me but it’s actually harder for FSBO’s to market their home for sale. Bottom line, most free classified sites produce very little results when selling a home, but are great for renting a home. Another misconception people have about internet marketing is it’s free! It’s not…..I wish it was!! It’s not cheap by a long shot!!

I now offer a new Sellers Marketing Advantage program that’s working for most of the FSBO’s I speak with. It’s a safe, reasonable and effective way to sell a home in today’s world! FSBO’s simply cannot duplicate the exposure I can provide! I think America is looking for a value! I’ve got one! Contact me if you would like to know more.

As a part of the stimulus package being signed February 19th, FHA has raised the maximum loan amount! This is effective today! If you are a borrower who may potentially now be eligible for financing and was otherwise restricted by the previous limits, now would be a good time to reconnect!

Metro Atlanta’s FHS limit is $346,250

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers. First-time home buyers (anyone who hasn’t owned a home in the last three years) can claim a credit worth up to $8,000 (or 10% of the home’s value, whichever is less) on their 2009 taxes for a primary residence purchased January 1st, 2009 and December 1, 2009.

Unlike the $7,500 credit from the previous stimulus bill, this is a true tax credit, in that it doesn’t have to be repaid, as long as the buyers remain in the home for at least 3 years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Use the links below to find out more details about the Home Buyer Tax Credit.

As of Friday, lawmakers were preparing to pass a $789 billion stimulus package to revive our struggling economy. President Obama was hoping for broad bipartisan support for the bill, a cornucopia of sundry government spending and business and personal tax breaks, but it just didn’t materialize. All Republicans, except Senators Susan Collins, Olympia Snow, and Arlen Specter, gave the bill a thumbs down. We’ll withhold judgment, because we are unsure (as is everyone, really) how the stimulus plan will play out in the general economy.

That said, I’m attracted to a few of the plan’s provisions, not the least of which is the provision to provide first-time home buyers with an $8,000 tax credit, which would not have to be repaid, unlike the current $7,500 tax credit. What’s more, it would extend the credit’s expiration date to December from July. Those eligible for the credit must purchase a home before Dec. 1, 2009 .

The credit extension appears to have broader support than most of the provisions in the stimulus plan. Mark Zandi, an oft-quoted economist at Economy.com, responded positively, but somewhat tepidly, to the credit. “The home buyer tax credit is a plus for the housing market,” he said. Brian Bethune, an economist at IHS Global Insight, was more upbeat, noting on Bankrate’s Web site that the credit should “induce more home sales” and “buffer” the rate in the decline of home prices.

Whatever the level of enthusiasm, I like the credit. Home prices could use a buffer at this point. Existing home prices have tumbled to an average of $175,400 in December 2008 from an average high of $230,200 in July 2006, according to data from the National Association of Realtors. We’ve often said that lower prices are needed to stimulate sales, and it’s true, but potential buyers also need some assurance that prices won’t drop much further after they take the plunge. More buyers, which the credit encourages, decrease the odds of that occurring.

The Senate has voted to include a $15,000 tax credit for homebuyers into the 2009 Economic Stimulus package. This amendment was proposed by Senators Lieberman and Isakson and is significantly different from the current $7500 tax credit available to first-time homebuyers. If the amendment survives the House vote, it will really drive the housing market.

The new proposal will give any homebuyer a $15,000 tax credit. This is up from $7500 for first time homebuyers only. The applicable value is 10% of the purchase price up to the tax credit is the same. The home has to be a primary residence. Under the current homebuyers tax credit, you will have to repay $500 a year over 15 years. Under the new proposal, no tax credit repayment if you live in the home more than 2 years. The income restrictions are now $75,000 per individual for full credit (prorated to $95,000). The new proposal has not settled the income restrictions as of yet.

The key points of interest:

1) At this point Leiberman/Isakson amendment applies to ANYONE purchasing a primary residence.

2) The $15,00 tax credit does not have to repaid.