How to Hold Proper Annual Meetings

To hold and have effective and by the book annual meetings, the HOA needs to consider the following issues:

Does your annual meeting have to be held on a certain date?

Which members are entitled to notice and/or entitled to vote?

When must notice of the annual meeting be given?

What is the quorum requirement for the annutal meeting?

Is Cumulative voting required or allowed, and if so, what does that mean?

What matters must be part of the meeting other than the elections of directors?


Must certain documents be included with the notice of the annual meeting?


Do the governing documents require the election to be held in a certain manner?


Is a nominating committee required?  If so, who appoints the members and when?


How many members need to be on the board?


What is the length of term of the board members?


Does your board have staggered terms?


If Board members have been appointed, when does their term expire?


Do board members need to be members of the association?


Do board members need to be members in good standing?


Are members of the architectural committee elected or appointed, and if elected, who elects them?

 If the association fails to follow the proper requirements for all of the above issues, a member could challenge the results of the annual meeting.  The association can change the requirements by amending the articles or bylaws.  If the association is violating any of the requirements, it should consider changed the requirements or changing the way in which it holds its annual meetings.

HOMEOWNERS CUT BACK ON REMODELING

Homeowner spending on home improvements will continue to trend downward into the first half of 2010, according to a recent Leading Indicator of Remodeling Activity report issued by Harvard
University's Joint Center for Housing Studies.

The study forecasts annual decline in remodeling activity to hover at approximately 11% for the next several quarters.  While there are some positive developments in the industry, such as low financing costs for home improvement projects and rising home sales in some markets, the study finds that the overall outlook going into 2010 remains bleak due to weak home prices and decreased cost recovery for some types of remodeling projects.

WHY DO LENDERS CHARGE POINTS?

Whenever governmental regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest which would make the real estate loan competitive with other fields of investments, the lender must seek some other method of increasing the yield for their investors.  By charging "points" (a percentage of the loan amount being borrowed), the lender can bring the real estate loan up to those other investments.

Are Points Called by Different Names?  Yes.   Commitment Fee, Discount Fee, Warehousing Fee, Funding Fee

Do the Number of Points Charged Fluctuate?  Yes.  If rates on mortgage loans are lower than other investments (such as stocks, bonds, etc.) then funds will be drawn away from mortgage market.  Also when there is heavy demand upon the money market because of business needs, military requirements or other government borrowing, the result is that money for home mortgages becomes scarce and more expensive.  When this occurs, more "points" (a percentage of the amount being borrowed) can be charged.  Points balance the market.  Points are not set by government regulation but by each lender individually.

FOR MORE INFORMATION CONTACT ME AT MY I Sell AZ Sunshine website.

What Does the Title Company Do?

Here's what the title company does in a nutshell:

*Opens the escrow and assigns a Escrow number.
*Requests a Title Commitment to determine the status of title to the property.
*Comply with the lender's requirements as specified on its instructions to escrow.
*Receive and handle purchase funds from the buyer.
*Prepare or secure the deed and documents related to the escrow.
*Prorate taxes, interest, insurance and rents.
*Secure releases of all contingencies or other conditions stated on the escrow.
*Record the Deed and any other documents.
*Request the title insurance policy.
*Close the escrow per the instructions supplied by the seller, buyer and lender if any.
*Disburse funds as authorized by the instructions including charges for title insurance, recording fees, loan 
  payoffs and real estate commissions.
*Prepare final statements for all parties involved that account for the disposition of all funds held   the escrow account.

NEED MORE INFO CONTACT ME on my I Sell AZ Sunshine website.

WHAT HAPPENS TO EARNEST MONEY?

A earnest money deposit is made to show the seller you are serious about buying their home.  The Realtor will inform you of the amount that is usually given in your area.  The seller doesn't actually receive the earnest money.  A third neutral party like the Title Company holds the amount in a special trust or escrow account until the sale is closed or the contract is canceled.


If you go through with the sale, the money is usually applied to your down payment or other closing costs depending on what is agreed to in the contract.  If you fail to buy the home, the seller has the right to keep the earnest money.  However, you can get your money back until the point at which you are notified that the seller has accepted your offer.  And if the seller fails to fulfill their obligations, the money is yours.  Other contractual contingencies can also come into play so ALWAYS have your Realtor explain the contract and it's contingencies to you thoroughly prior to signing.

FOR MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

WHAT IS A BUYER'S MARKET?

Almost everyone has heard the term"Buyer's Market" and wondered what that meant.  This term means what it says...it's a good time to buy.  Here are a few factors that helps to make it that way:

*High Inventory of homes for sale

*Lower interest rates

*Unstable or weak economy (no kidding)

*Less population influx into the areas

*Lower home prices (ya think?)

*Narrow area economic base

*Decreasing area employment base

Some of the factors which help to predicate a Buyers' Market include:  Weather, special interest areas by specific groups of people like retirees, expanding employment, spiritual affiliations, special recreation availability, artistic activities or just a heightened interest in the area.


One important statistic that buyers need to know is that nationwide more homes are sold between May and September than are sold in the other seven months of the year.

NEED MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

What Type of Home Do You Want?

Maybe you know what you want....3 bedrooms 3 baths 3 Car garage in an Active Adult Community with mountain views.  If so, then your Realtor can immediately begin to look for only that type of home.  Otherwise, if you don't know what you want but "you'll know it when you see it" you need to take a moment and make a list of "needs" and "wants".


Consider what specific features you are looking for like the distance to work, school and overall location.  Consider what you want the exterior to look like and what you would like for the interior.  Decide on a type of home and don't overlook the systems such as security, heating, electrical and energy saving options.  As for the extras, consider whether you want a pool, den, clubhouse amenities, office or spa.  It will help you define what you really have to have and really want to have in a house and neighborhood. 


This will help a Realtor considerably when searching for the right home to show you.  When you look at homes, be sure to bring your list with you & pick up brochures at each home so you'll remember which home offered what.  I also name each house with a memorable nickname which helps you to recall the home (golf home or pet house or pool home) as well especially after you've looked at 5 or 6 homes in one day.


NEED MORE INFO CONTACT ME at my I Sell AZ Sunshine website.

WHAT TITLE INSURANCE PROTECTS AGAINST

The matter of title insurance arises in every real estate transaction.  For the Seller, the title policy covers the insured for their loss up to the amount of the policy.  It assures owners that they are acquiring marketable title and is designed to eliminate risk or loss caused by defects in title for the past.


For the Buyer and/or Lender, title insurance is issued to guarantee to the insured party or parties "Free and Clear" title to the property being insured, from the beginning of time until the date and time the buyer acquires title to the property.  In the case of a lender's policy until the date and time the lender's loan document is recorded against the property.


"Free and Clear" is defined as there being no loans, liens, encumbrances, back taxes, easements or covenants, conditions or restrictions against the property that were not disclosed on Schedule B of the commitment for title insurance issued by the the insuring company.


Here's a few things Title Insurance protects against:
*False Impersonation of the True owner of the property
*Forged deeds, releases or wills
*Undisclosed or missing heirs
*Mistakes in recording legal documents
*Deeds by persons of unsound mind
*Deeds by minors
*Deeds by persons supposedly single but actually married
*Fraud
*Liens for unpaid inheritance, income of gift taxes

FOR MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

WINTER VISITOR---TO BUY OR RENT A HOME??

Arizona vacation rentals have some of the most sought out space, especially for those who are getting away during the frigid northern winters.  Wintering way away from home by purchasing a home or your own vacation rental has its advantages but so does renting prior to taking the leap to buy.

If you are renting, you do not have to worry about any upkeep or maintenance of the rental home as there is always someone to call for that job. For instance with vacation rentals in the Gold Canyon, Mesa, Queen Creek, Sun Lakes or Scottsdale areas, most are going to have pools and spas for your use which don't require any maintenance by you the tenant.  All you have to provide is the money to pay for your rental.

On a positive note, you may still be motivated to buy after you spend some time doing your homework. Never overlook the fact that you can both buy and rent your own vacation home in one of the most popular vacation markets to date as well as have a second-home tax write-off.  Furthermore, since this is a second home, you can opt to migrate and head North for the summer. Any qualms about purchasing can be overcome by testing the waters first and spending time in an Arizona vacation rental to make up your mind. Give it a month and talk to local homeowners about their experiences and the local housing climate.  Since it is a buyer's market the housing sector will get it shot in the arm in due time.  AND, while you are visiting sunny Arizona be sure to apply SPF 32 sunscreen liberally and enjoy yourself.

NEED MORE INFO CONTACT ME AT MY I Sell AZ Sunshine website.

FLIP THIS HOUSE? MAYBE NOT?

FNMA, FHMLC, and the banks such as Wells, Chase, etc. continue to warn lenders to apply extra scrutiny on transactions where the seller has owned the home less than 90 days.  It is possible that they may soon adopt a 90 day rule similar to FHA's rules, but in the mean time, Bell Mortgage in Phoenix Arizona is continuing to process these transactions on a case by case basis.  They still have two investors who will accept these loans, and there are currently two mortgage insurance companies who will insure them up to 90% LTV, provided the borrowers have strong files with solid home appraisals.

 

Here are some areas of concern:

 

1)  The seller must have clear title to the property when they sign the purchase contract.  All liens must be paid off.  Short sale middlemen do not have clear title. 

 

2)  The title company must supply the lender with a 24 month chain of title.  We may need to obtain copies of the Trustee Deed in order to determine who is actually on title.

 

3)  Multiple ownership changes in a short period of time (other than between financial institutions and their agents) can be a cause of concern.

 

4)  Large changes in value with little or no improvement to the property may trigger additional scrutiny of the loan file.

 

5)  Sales that are not arms length (sale to a relative) may cause the transaction to be denied.

 

Courtesy of Jay Starks, Bell Mortgage, Phoenix, Arizona

What is a Foreclosure & REO (Real Estate Owned)? Part 1

A Foreclosure sale begins with a minimum bid that includes the loan balance, all accrued interest plus legal fees and any costs associated with the foreclosure process. In order to bid at a foreclosure auction, you must have a $10,000 cashier's check in your hand and the full amount of your bid is due within 24 hours after the sale has ended. As the successful bidder, you obtain the property in "as is" condition and that can include a tenant still occupying the property.  Recent legislation can prevent you from having the tenant removed and you may have to honor their lease with the previous owner so do your homework on this one before bidding.
In today's real estate arena the amount owed to the bank is almost always more than the value of the home resulting in very few successful foreclosure auction sales. Hence, the property "reverts" back to the bank and becomes an "REO" or "real estate owned" property. 

HIDDEN HAZARDS IN YOUR HOME

The Most Painful Burn is the One you Could Have Prevented! 


Among the hidden hazards in your home, there are two especially harmful to children:  flammable liquids like gasoline and paint thinner.  The other is ordinary household tap water that's too hot for a child's skin.  Protecting your loved ones from flammable liquids and extremely hot water should come down to common sense.  However, with so many accidents, injuries and deaths every year it's easy to see that common sense is sometimes overlooked. 

As parents & grandparents, we become preoccupied or distracted in going about our daily lives and that's where the problems lie.  All it takes is a split second to change the course of your life and/or the life of a much-loved child.


Gasoline is a Motor fuel - that is the only thing gasoline is for.  It is not a solvent, not a cleaning fluid and should never be used that way.   Dangerous flammable vapors are released in your home or garage every time there is a spill or when the gasoline or other flammable liquid is not properly sealed in its storage container.  Silent, invisible vapors can travel; and, if these vapors reach a source of ignition, like a faulty electric outlet, the spark from a running motor or the pilot light of home appliance (hot water heater is a biggie), the vapors can ignite....and blow you clean out of the house.

Are These Products Around Your Home?  
GASOLINE, propane, kerosene, lighting liquids, cleaning liquids, oil-based paints, fertilizers, mineral spirits, nail polish remover, furniture polish, floor polish, disinfectants, pesticides, weed killers, turpentine, hair spray, adhesives and/or glues.



 

DON'T BUY ON THE REBOUND

It happens to thousands of homeowners each year.  They find their dream home but are outbid by another buyer.  Out of frustration they buy the next house they see.  BAD IDEA!!! 

Sure, it's disappointing to lose the "perfect" house.  But rushing to find a replacement can bring an even greater regret.  The fact is that most home buyers face some kind of a setback during their home search...albeit it pricing or financing or timing.  The key is to approach each step in the home buying process as part of a valuable learning experience.  

Finally, buying a home is not the ultimate goal.  Buying the right home is the goal.  Compromising with an inadequate choice is a sure path to Buyer's remorse.  I found out a long time ago that there will be another house coming on the market soon very often better than the first one you thought was the "perfect" house.


 Courtesy of Sherri Buttler, Sun American Morgage Company  sherri.buttler@SunAmerican.com  

       






   

MORTGAGE IS DENIED? HERE'S WHAT TO DO

Talk about raining on your parade!  You find your home, make an offer & then learn that your loan application as been turned down.  What to do now?

You may be able to turn a "NO" into a "YES" by taking the right steps:

Low appraisal-Try negotiating with the Seller or consider making a larger down payment should you have the money.

Not enough up front Cash-Lender determines that you don't have enough money to cover the downpayment + closing costs.  Ask the Seller to assume some of the closing costs or consider a non-repayable gift of funds from a relative.  Your lender will instruct you how to document this gift.

Insufficient Income-Due to governments "Making Homes Affordable" program, lenders are using a 31/38 rule when calculating allowable loan limits. Monthly PITI (principal, interest, taxes & insurance) should not be more than 31% of your gross monthly income. Your total debt (car loans, credit cards etc.) plus the PITI should not exceed 38% of your gross monthly income.  If your credit record is good & you've been carrying an equivalent housing payment, try to convince the lender to ease this guideline. If you or your spouse are expecting a salary increase, tell the lender who can then verify the forthcoming income increase.

Unsatisfactory credit (FICO) score--Lenders are looking for defaults, bankruptcies as well as late or missed monthly payments.  The lender needs to know the full picture if these issues are due to an illness, job layoff, marital problems or other short-term situations.  If you've regained financial stability for at least a year, the lender may reconsider.  If you have an up-and-down credit history, the only solution is to reestablish prompt payment practices.  There are also a few good lenders that will assist you in "cleaning up" your credit report and therefore increasing your FICO score.  Please contact me and I can refer you to these lenders which do not charge for this service...they just want to handle your loan when it comes time to buy.

TO TWITTER OR NOT TO TWITTER....THAT IS THE QUESTION

If you don't know what it means to "Twitter" you may be behind the times.  Social media tools like "twitter" are as popular and user friendly as yesterday's PDA's.  Other social media trends include Google Reader, Twitter , Activerain and Facebook which are the new wave in connecting with others.  These new avenues seem to bring networking circles closer together and allow more frequent communication. While we may not know whether these new methods of mass media are a blessing or a curse, it is probably a good idea to at least get familiar with them.  If you don't, you may just be missing the boat that's leaving port.

Facebook seems to be used in more of a business or professional setting.  It provides pictures of people and periodic updates as to what these people are doing.  Twitter requires communications to be in bytes of approximately 140 characters or less. Ironically one of the most valuable aspects of Twitter is developing the skill of communicating a mouth full in a few choice words.

One of the best things about these new methods of communications is that by and large they are free.  As postage becomes more expensive and takes more time, it makes sense to use the Internet as a creative chatter box.

TIPS FOR FORTHCOMING 2010 CENSUS - PROCEED WITH CAUTION

There will be a mass mailing of US Census forms to fill out in 2010.  Be CAUTIOUS of what information you give to any Census worker---NO Social Security Number, NO Banking Information or addresses of rentals. (tax returns reflect that information.) and NO SALARY INFO.  With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but prudent, so not to become a victim of fraud or identity theft.


The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country.  Eventually more than 140,000 Census workers will count every person in the US and will gather information about every person living at each address, including name, age, gender, race and other relevant data.


The big question is - How do you tell the difference between a U.S. Census worker and a con artist?  The BBB offers the following advice:  If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. And NEVER invite anyone you don't know into your home.


Currently, Census workers are only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the
U.S. Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employee solicit donations.




Finally, Census workers may contact you by telephone, mail, or in person at home. However, they will NOT contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.


FOR MORE INFORMATION OR ADVICE VISIT http://www.bbb.org/

REAL ESTATE MOVES-TOP MOST FORGOTTEN ITEMS

When you are running around on moving day, here are some items to remember:

A. Copies of family medical records, vet records and prescriptions to transfer to a destination pharmacy.  Also your child's permanent school record and shot records.

B. Anything that you have placed in a hidden spot....like jewelery, wills or other valuables.

C. Check with the dry cleaners to make sure you haven't forgotten to pick up your favorite piece of clothing.

D. Keep your new address handy....you may be so stressed that you can actually forget it.

E.  Leave out cleaning supplies for a final cleaning.  Many of these items mover's won't transport anyway.

F.  Don't pack your garage door openers and appliance instruction manuals.  Put them in the cabinet over the stove with a sign for the movers "Don't Pack" on the doors. Spare house keys, mailbox keys and pool keys should be placed there too.

G. Don't forget your pets.  Make arrangements for their transport....just don't leave them with the house....like so many people are doing these days.

H.  Open a destination bank account about a month before your move so that you will have immediate access to your funds and local bank checks.  This also gives the Title company an account for the transfer of closing funds from the sale of your home.

I.  Collect all the spare keys (from neighbors or other outside hiding places) and leave them in a predetermined spot for the new owners.

DON'T MAKE MAJOR CREDIT PURCHASES DURING LOAN QUALIFICATION

Home buyers---don't go on a spending spree using credit if you are qualifying to purchase a home. Your loan pre-approval is subject to a final evaluation of your credit report just a fewdays prior to closing. Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility ie. $300 car payment could mean that you qualify for $30,000 less in a mortgage. Even if you have sizable savings, don't make any large purchases until after closing. The last thing you want to happen is to have your loan declined and lose your new home.

SHORT SALES DEFINED & WHAT INFO TO PROVIDE LENDER & REALTOR

Here's my definition in a nutshell: A short sale is nothing more than negotiating with loan holders a payoff for less than what they are owed. Otherwise, a sale of debt generally on a piece of real estate, short of the full amount owed. It does not extinguish the remaining balance unless this is clearly settled in the acceptance of the offer. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing since there are legal and other carrying costs that are associated with a foreclosure. This occurs on a daily basis since many homes have loans that are considerably higher than the current value of the home. If you would like my Homeowner's Short Sale 16-Step Instructions emailed to you please contact me through this blog site.

ARIZONA HOME OWNERS, SENIOR CITIZENS & INVESTORS BE CAREFUL!!! PHONY FORECLOSURE SCHEMES ARE RAPIDLY GROWING!!!

Panicky Arizona home owners who have fallen behind in their mortgage payments and are on the verge of foreclosure are vulnerable to phony " real estate mortgage rescue" or "home foreclosure prevention" schemes. Do not turn to these companies with the hope of preventing the loss of your home without doing your homework first. Call the Arizona Better Business Bureau plus asking for local references. These schemers want to take your home, steal any equity you have built up and may focus on unsuspecting Senior citizens.One common foreclosure prevention scheme has the "rescue company" lending a homeowner money @ high interest rates to make back-payments to their mortgage lender. The homeowner must agree to make monthly payments to the "rescue company" that includes the original mortgage payment plus a payment on the new loan. The "rescue company" also requires the homeowner to sign a deed tranferring the property to the "rescue company". The homeowner ends up renting the home that they formely owned. If the homeowner fails to make the "rent" payments on time, the "rescue company" evicts the former owner. You have lost all your rights and equity in what was once your home.