Foreclosure Fairness Act forces dialogue between lenders and distressed homeowners

There’s a new law in Town… to help you stay in your home.

Under a new Foreclosure Fairness Law beginning July 22, 2011, if you are in trouble with your mortgage on the home you occupy and you are facing a possible foreclosure, you may have the right to meet with your lender and even demand mediation to attempt a modification of your loan terms. Here is what you can expect:

1. If the foreclosure of your home started after July 22, you will receive a letter from your bank/lender. Before certain banks^* can foreclosure on your property, they will send you a letter inviting you to talk with them to discuss possible solutions. If you don’t get back with them, they must also try to reach you by phone.
2. The bank letter or phone call will advise you to call a housing counselor or attorney. You should consult your lawyer. If you do not have a lawyer or prefer to a consult a housing counselor, you may do so at no cost. You can reach a housing counselor by calling: 1-800-894-HOME (4663) If you choose not to consult a housing counselor or lawyer, you can still meet with your lender, but you cannot demand mediation. Whatever you choose, you must act quickly after you receive the letter and/or phone call from your lender. Your time to demand a meeting or mediation is very short.
3. A housing counselor or attorney can demand mediation.^* Mediation forces your lender to discuss your options for staying in the home. You may bring your lawyer or housing counselor to the mediation. A third party, the mediator, insures a fair discussion. You will have to share a $400 mediation fee with your bank/lender.
4. If a foreclosure of your property has already begun by July 22, 2011, you will not receive a letter or phone call from your bank or lender. However, you may still have a right to demand a meeting with your lender and if you contact a housing counselor or lawyer, they may still be able to demand mediation. Time is short to make the necessary demands so you should contact your lawyer or housing counselor immediately if you have already received foreclosure paperwork from your lawyer.

^*This only applies to banks or lenders that have filed at least 250 notices of default in the prior year. A list of those banks/lenders that are exempt from the law is available on the Department of Commerce website.

Find out more at the Department of Commerce website.

Quick Homeowner Updates

It happens to all homeowners. Rooms that once looked fresh and contemporary have aged themselves into drabness.

For some it's an excuse to redecorate. For others it's a chore. Either way homeownership is an ever-evolving process. As one project ends, another peaks its head around the corner.

To bring your rooms current, as well as to update worn and disheveled items, consider these five room freshening tips.

1. Paint: Paint is number one on the list because it is relatively cheap and easy to do yourself. Getting a professional finish is simple, thanks to the myriad of products now on the market for do-it-yourselfers. From tape to edgers to color changing paint, you're sure to get a quality finished product. "In" colors change every few years, so be sure to do some homework on what hues are happening.

While you're at it, research zero-voc (volatile organic compound) paint before starting your project. Traditional paint leaches fumes into your home for years. Zero-voc paint, however, exposes you to fewer odors during the painting process and fewer risky fumes in the years to come. This is well worth the effort of searching out zero-voc. Olympic brand paint offers their full line of colors in zero-voc. Plus, the cost difference per gallon is minimal.

Paint does wonders for hiding dirt, wear, and tear. Bring your home into the new decade with a fresh coat!

2. Trim: The current trend is for trim to be white instead of natural wood. It is contemporary and clean. If your trimwork is in good repair, simply puttying holes, sanding scuffs, and painting can update the look. Dated trim that is too thin for your large rooms can be replaced with new baseboards. Amateur handyman can tackle this task with table and coping saws. Trim is all about getting the angle cut correctly. Already have current looking trim? Upgrade your room with crown molding. These beauties can be real show-stoppers!

3. Cabinet Hardware: From oil-rubbed bronze to beautiful vintage pieces, old is in. Hardware can easily be added to any existing cabinetry or changed to bring a new feel to a tired room. Shop in your local home improvement stores, online, and at local auctions to find the pieces that speak to you.

4. Decorative Accents: Curtains are the frame to any well-designed room. Choose colors and patterns that fit the scale of your room. Heavy curtains made from chenille or jacquard work best in large rooms with tall ceilings. Lighter weight fabrics, such as silk and chiffon, are great choices for small or airy rooms. Decorative pillows and throws are also an inexpensive way to change the accents of your room. Have a teal room but want to go contemporary? Bright is in. Don't be afraid to play with color!

5. Flooring: While flooring is not a simple fix and may require the help of a professional, it can make all the difference in a dated room. Scratched and worn wood floors should be sanded and refinished to show the natural beauty of the wood that lies beneath. Laminate wood flooring is a cheap and easy solution for budget conscious homeowners who want a clean and modern update. It can be a wonderful solution for worn out carpet.

If your rooms are looking tired, be sure to wake them up with a few new colors, paints, or accents!

Landscape Appeal Helps Sell Homes

If you're like many sellers, listing your home for sale creates a challenge to keep the home show-ready at all times. That can be difficult enough.

Consider this notion, though. No matter how nice the inside is, if the outside isn't inviting, you're likely to lose prospective buyers before they ever set foot in your home. That's because in real estate, buyers often do "judge a book by its cover".

Take a good look at your home from the outside. Step across the street and decide if you think buyers would want to see more based on your home's "cover".

If you answered "yes," then your job is easy. Make sure the inside won't be disappointing to those same buyers. If your answer was "no," then you have some work to do. While many sellers may think that only interior pictures of their home posted on the Multiple Listing Service are what buyers really care about, there's more to it.

The outside can be a huge roadblock for buyers. If potential buyers pass by your home while cruising through a neighborhood and see your for sale sign, but also see a broken down gate, leaky sprinklers, cracked driveways, a lousy exterior paint job, and kids' old toys strewn across a brown lawn, they'll keep on cruising to the next home on the market.

Chances are you're busy getting the kids ready for the move, squaring away all the details for your new housing arrangement, trying to work, care for family, and still have some sort of personal time. That's a lot to handle. However, it's no excuse for not making your landscape appealing, especially when you think of the consequences. That could be not selling your home at all.

Here's a quick and tidy plan to help give your home a beautiful "cover". Remember, buyers are well-read. They will judge a home by it's exterior. And, if they're really interested in your home but the outside is a mess, they'll make sure that becomes a negotiating tool in the home-buying process.

Here are a few tips on the big exterior influencers.

Do not have unkempt lawn. It shows a lack of care for the home. If the lawn is beyond repair, pull it up and try drought-resistant landscaping. If there's a chance to revive it, a fresh-cut lawn is one way to showcase the appreciation the homeowner has had for his property. Also, note this tip from HGTV. Don't cut your lawn too short. You want to remove only a third of the blade of grass. Any lower than that "and you start stunting the grass," according to HGTV.

Clear the clutter from the porch. Sometimes the porch becomes an extension of the garage or tool shed. Kids' bicycles, toys, and people's shoes accumulates there. When buyers come to view the home, they often feel like they are intruding instead of viewing a property that they might be purchasing.

Pull the weeds and ditch the empty planter boxes. A lot of times homeowners will leave an empty planter box, intending to get some flowers for it, but somehow that doesn't happen.

Paint and fix any hardware that looks extremely worn. Nothing beats a fresh coat of paint. Yes, it's work and it costs money. That's exactly what buyers will think, which is good news for you! They'll think, "This homeowner put some TLC into this home." When you're selling your home, fresh paint is always recommended for the inside. If the outside needs it, you'll be doing yourself a huge favor and increase the chance of a higher sales price.

- Phoebe Chongchua, Realty Times

3 Types of Homes on the Market: Your Questions Answered

I want to take a minute to explain that today there are 3 types of homes for sale:

1. Organic

2. Short Sale

3. REO/Bank Owned

The type makes a difference to you the buyer because each sale has a different closing time frame and closing probability. The first think you must determine is HOW SOON WOULD YOU LIKE TO BE MOVED INTO YOU HOME?

Based on your answer to the above question will determine which properties you should look at.

Let’s go over each Seller “type” of home and discuss them each.

1. Organic. This is a normal equity seller. They are typically not financially distressed. They typically are not late on their mortgage and are not facing foreclosure. This is where the current home owner wants to sell their home and they are either breaking even or they may have equity. BENEFIT: We can close the sale in typically 30-45 days. No bank approval delay. We can get an answer on your offer immediately (24hours). The condition is typically better than Short Sales or Bank owned homes.

2. Short Sale. This is where the home seller is late on their payments and may be facing Foreclosure. The listing agent lists the home at an aggressive price hoping to secure an offer. If the seller accepts the offer, the offer then has to be sent to the bank or banks and or trustee for approval. CHALLENGE: This can take 3-6 months (sometimes up to a year) to close a sale. You will have an answer from the seller immediately but the banks may take several months to approve the sale. Also the seller actually has to qualify to Short Sale their home. If the seller has too much money in the bank or makes too much money monthly at their job, they may not qualify. The condition can vary but is typically poor.

3. REO/Bank Owned. The original home owner defaulted on their loan. The bank Forecloses on the home and lists it for sale at a discounted price. BENEFITS: Typically the best buy on the block. Fast closing 15-30 days. The condition can vary but typically the homes need some work.

So I hope that helps you out in looking at homes. You must first determine when you would like to be moved in. If you have lots of time you have more options. If you have a short period of time you should consider the property types carefully.

Momentum building as home buyers respond to lower prices, favorable financing

Northwest Multiple Listing Service members reported a 43 percent increase in pending sales of single family homes and condominiums during May compared to the same month a year ago. Sellers accepted offers from 7,509 buyers last month, up from the year-ago total of 5,242 pending sales.

Year-to-date pending sales are slightly under the total for the first five months of 2010 when sales were boosted by a federal tax credit. Through May 2010, Northwest MLS members had reported 35,454 mutually accepted offers; this year's total for five months is 33,612 (down about 5.5 percent).

"We're seeing a definite shift in the market – especially in the areas closer to Seattle and Bellevue," remarked OB Jacobi, president of Windermere Real Estate and a member of the Northwest MLS board of directors. "Homes that are priced aggressively are seeing a lot of competition and we're even getting reports of some homes selling before buyers can act," he stated.

Members reported 5,015 closed sales during May, about 5 percent fewer than the year-ago total of 5,290 completed transactions. For the first five months of this year, a total of 20,473 transactions have closed, which compares to 21,861 for the same five months of 2010 (down about 6.8 percent).

For the four-county Puget Sound region (King, Kitsap, Pierce and Snohomish counties), pending sales through five months are at 97.6 percent of year-ago levels, while closed sales are at 95.6 percent of year-to-date totals for 2010.

Northwest MLS reports both pending sales (mutually accepted offers) as a barometer of the most recent sales activity, and closed sales (completed transactions).

Matt Deasy, the general manager of Windermere Real Estate/East, considers the small differences between year-to-date figures for 2011 and the "tax incentive fueled market" of 2010 to be "good news."

Mike Grady, president and COO of Coldwell Banker Bain, was also upbeat in his comments about the current market. "The substantial jump in pending home sales reported today won't be surprising to the brokers working in the core urban markets of Seattle and West Bellevue," observed Grady. He also noted the increasingly strong demand for homes and falling inventory "is making for a very competitive market in those areas, with multiple offers on the best properties becoming more common."

"Low interest rates, low down payment requirements, and lower adjusted prices are attracting buyers into the market," reported J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. "We are seeing healthy sales activity close to the job centers of Seattle and Bellevue, creating a low inventory of homes for sale," he noted.

Members added 10,293 new listings to inventory during May, about 900 more than the same month a year ago for a 9.7 percent increase. Despite those additions, the selection is smaller than 12 months ago. At month end, there were 36,261 active listings of single family homes and condos in the MLS system. That's about 5,400 fewer than a year ago when inventory totaled 41,690 listings, a shrinkage of 13 percent.

"On King County's Eastside, we are seeing a decrease in the number of listings that are short sales or bank-owned properties," said Kathy Estey, managing broker of John L. Scott Bellevue Main. "Inventory of quality homes in median price ranges is low and we see multiple offers in most price ranges, including homes in the higher prices ranges. Some of the old, stale inventory has sold. However, the majority of homes are still selling for less than full price."

Jacobi said a recent review of Windermere's sales data shows that 40 percent of homes in the median price range are selling at list price and many of these buyers are paying cash. "With that being said, the market is still very price sensitive, so sellers need to continue to be realistic about the value of their home," he stated.

The median price for last month's sales system-wide was $239,999, about 11 percent less than a year ago when it was $269,950. Brokers attribute much of that price decline to the fairly high ratio (estimated at 30-40 percent in many markets) of foreclosed homes and short sales that are being sold at deep discounts.

In King County, prices slipped 8.4 percent, from $346,000 a year ago to $316,750 for last month's closed sales of single family homes and condominiums. For single family homes only (excluding condominiums), the median selling price was $345,000, down about 9 percent from the May 2010 figure of $379,000.

Grady is encouraged by the momentum. "The last few years, home sales haven't sustained much momentum without government support," he noted, adding, "This year, however, the momentum is continuing to build naturally, as we would normally expect in the spring and summer months. Remember, by this time last year we had already experienced all of the benefit of the homebuyer tax credit, and sales began to wane after that credit had expired. We see an entirely different dynamic this year."

It's obvious not all local markets are improving equally, Grady acknowledged, suggesting, "It's also obvious that the basic market forces of low supply and high demand are beginning to shift buyer or seller attitudes in many neighborhoods. That's good news for sellers, and perhaps a cautionary message to buyers as well."


Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

Curious about QR codes?

A few statistics underscore the skyrocketing popularity of QR (Quick Response) codes, with real estate professionals being among those who are embracing this nifty tool.

The Nielsen Company estimates U.S. smartphone penetration will hit 50 percent by the end of 2011. New York-based eMarketer, an authority on digital marketing, media and commerce, reports there are currently 73.3 million smartphone users.

According to the new site Mashable and JumpScan:

52% of mobile users have seen or heard of QR codes; of those,
28% have scanned one. iPhone users scan by far the most, at 68% (versus 26% of Android users and 4% of Blackberry users).
QR-code scanning rose a whopping 1,200% from July to December 2010.
Companies like Starbucks are already using QR codes (as well as barcodes) to enable users to pay for their purchases via mobile. A whopping 3 million customers have already tried it.

Many of the major airlines are now using 2D codes as digital boarding passes, and by the end of 2011 all carriers will be required to provide this service for international flights, notes Jeff Korhan, an online marketing consultant/blogger, professional speaker and coach. "I tried this myself and it works like a charm," he reported, adding, "My only suggestion is to not rely on the link, but rather to save a copy of the image on your phone. You don't want to risk not being able to find a good signal when you need it most!"

SunMaid, a 99-year-old company, hopes to leverage the technology in a promotional tie-in with DreamWorks Studios and last month's debut of its animated movie Kung Fu Panda 2. Packages of its raisins are adorned with the QR code. Upon scanning it, consumers land on a mobile website where they can enter a contest for a chance to win prizes, including the grand prize VIP trip for four to the Giant Panda center at the Atlanta Zoo.

QR codes have been in use in Japan, where they were invented, for more than a decade. Denso Wave, a subsidiary of Toyota, holds the trademark, but that company is not exercising its patent rights in order to encourage widespread use. (The codes were initially used for tracking parts in automobile manufacturing.)

In some ways, QR codes are similar to barcodes. Unlike the linear one-dimension barcodes, which have a capacity of 20 numerical digits, QR codes are two-dimension matrix codes with the ability to hold thousands of alphanumeric characters of information. The information encoded can be text, URLs or other data and digital content, and the codes may appear in magazines, on signs, buses, business cards or other objects that consumers can scan to access more information.

QR codes can be scanned or read with a number of mobile devices, including iPhones, Android, BlackBerry or other camera-enabled smartphones. (See box for links to download readers and code generators.)

In an article Korhan authored on practical uses of QR Codes, his list of current and anticipated applications include:

Business cards and other stationery
Brochures and other marketing materials
Advertisements
Vehicles
Product tags and packaging
Name badges
Event ticket stubs
Point of sale displays
Coupons and special offers
Signs
Recommendations for complementary products and services
Purchase receipts
Links to installation and assembly instructions and demonstrations
Customer feedback forms
Warranties (e.g., sources for replacement parts and services)

A review of govloop.com, a social network for the government community, indicates rising use of QR codes in the public sector. Examples range from tourism (Manor, Tex., Long Beach, Wash., and Michigan Dept. of Transportation), to GSA campaigns and events, building permits (New York City), and conferences (Baltimore).

Real estate professionals are also adding the codes to their marketing arsenals. Rose Harris, a Realtor at ONE Sotheby's International Realty in Miami, told "Biz Byte" columnist Tasha Cunningham that she has been using QR codes to educate clients about the properties she sells. "We use them to drive traffic to our single listing websites," said Harris. "Our clients love them because they can simply scan the code and find out everything they need to know about a property without having to go to a computer to search for it. It's right there in the palm of their hand."

(Editor's note: Northwest Multiple Listing Service has rules governing two dimension barcodes, such as QR codes and Microsoft Tags. In general, they may be added to signs or fliers, but cannot be uploaded as listing photos.)



In an interview with Media Life Magazine, the publisher of Entertainment Weekly was asked about the future of QR codes. "They're definitely getting more traction," replied Jason Wagenheim, noting Microsoft's recent announcement that five billion of its MS Tags have been printed since their January 2009 launch. The same report indicated the number of product scans had doubled in just the past three months.

"I really feel that it's a technology that's here to stay and it will only get better, faster and allow for more interactivity, especially as we see adoption rates continue to increase," Wagenheim stated. "Like every other piece of new technology in this fast-changing market, we need more and more consumer adoption for it to be meaningful for our advertising partners, and we need our advertising partnershttp://www.blogger.com/img/blank.gif to deliver strong messaging and rewards that makes it all worth it for our consumers."

Wagenheim expects the next phase of QR code technology for Entertainment Weekly will include building out a more robust destination that includes an opportunity for users to share just-scanned codes with their social network.

READ MORE
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List of recommended QR-Code reading software, available for download: http://www.mobile-barcodes.com/qr-code-software/
Code generators: http://www.mobile-barcodes.com/qr-code-generator/http://www.blogger.com/img/blank.gif
"Who is Scanning QR Codes?" Considerations when producing a mobile strahttp://www.blogger.com/img/blank.giftegy. The Po!nt: Mind your QR P's and Q's: http://www.marketingprofs.com/short-articles/2271/who-is-scanning-qr-codes-heres-a-quick-update#ixzz1LCxMdWa1
20 page white paper titled "Harnessing the Power of the Mobile Web. http:http://www.blogger.com/img/blank.gif//www.knotice.com
How QR Codes Can Grow Your Business. http://www.socialmediaexaminer.com/how-qr-codes-can-grow-your-business/
10 Ways to Use QR Codes and Microsoft Tags to Attract New Customers. http://www.bizbytes101.com/
QR codes and Microsoft Tags can boost your bottom line. http://www.miamiherald.com/2011/05/30/2241785/qr-codes-and-microsoft-tags-can.html
Microsoft Tags (works on various devices). MS tags can incorporate logos and images, but require a Microsoft Tag Reader, available at: http://tag.microsoft.com/download.aspx

Copyright © 2011, Northwest Multiple Listing Service

Home sales to rise 5% in 2011, according to Freddie Mac

Freddie Mac released its U.S. Economic and Housing Market Outlook showing a pick-up in economic growth in the second half of 2011 and a projected 5 percent increase in 2011 home sales over 2010, on a calendar year basis.

Other key findings from the report:

Over 250,000 new jobs are needed monthly, on a sustained basis, to reabsorb the jobs lost since the recession.
Average unemployment duration was 38.3 weeks in April, down slightly from the record of 39 weeks in March.
The rate of seriously delinquent mortgages (8.6 percent average) will likely trend lower during 2011, but will continue to remain at extraordinarily high levels for an extended period.
During the first quarter of 2011, home prices decreased by 2.8 percent nationwide.
Home buyer affordability remains extraordinarily high, mortgage rates low, house prices are well off their cyclic peak, and contract signings for existing home sales are up.

For the full report, visit: http://www.freddiemac.com/news/finance/docs/May_2011_public_outlook.pdf.