Due to recent increases in gas, food and home energy costs, efficiency has become a major concern for many homeowners. In addition, homeowners are demanding products that help them become more environmentally responsible.  Homeowners can protect both their pocketbook and the environment by ensuring they have proper insulation in their homes.

Here are some options for home owners who are in a short sale equity position in their homes:

Options:

1.    Program Name:    Hope for Homeowners

        a)    Begins this Month

        b)    For borrowers that purchased their home before 2008

        c)    Monthly payments exceed 31% of their gross income

        d)    30-year fixed option up to $550,440, guaranteed by FHA

        e)    Banks would write down the mortgage to 90% of the home's current value

        f)     May require sharing future equity with FHA, when sold

2.    Program Name:    Hope Now

        a)    Currently existing and is available to borrowers

        b)    Co-operative efforts among current lenders, servicers and non-profit groups

        c)    Helps current homeowners to defer or re-schedule monthly payments or reduce their loan principal

Where can borrowers get information?

        a)    Hope Now Hotline  888-995-HOPE (4673)

        b)    Website  www.Hud.gov, go to search and type in either Program Name

                --you will find lender lists, guidelines, etc...

Looking for a new home can be exciting and frustrating. You can help alleviate the frustration by paying close attention to five key areas of the homes you're considering buying; it may save you money in the long run.

Don Walker is an inspector and owner of Ace Home Inspections. He says there are five areas in homes that he frequently reports problems with. They are electrical, foundation, plumbing, the attic, and landscaping.

Electrical

Walker says sometimes homeowners assume with newer homes that all will work just fine but that's often not the case. "I inspected a brand new house—four years old but the electrical was all done incorrectly," says Walker.

Having a complete home inspection will help to rule out any problems and point out any areas of concern. However, even as you're browsing homes, buyers can start to make note of the key areas that Walker mentioned, such as the foundation.

Foundation

Walker says a four-year-old home he inspected recently was already showing trouble signs which could result in a costly repair project. "It was a model home. What the homeowners did was plant trees for shade to make it look really nice, but they planted the wrong trees and they're going to crack the foundation and it's going to cut the property value down by $50,000," says Walker.

Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. "As you walk through the house, 21 feet in and 30 feet deep, there's just too much root invasion and it's going to ruin their tile," explains Walker.

He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, "which means the foundation is moving."

However, just because you see cracks doesn't mean there is a foundation problem. "Most people don't understand that there are natural cracks in a house. That's why when we do an inspection report we have to look at it and say 'Okay, this is a typical crack and this one is an untypical crack,'" says Walker. He says some cracks may lead to other problems while others won't.

Plumbing

Walker says another big area of concern is the plumbing. It's an area that you can't always spot as easily but it can create expensive repairs if plumbing issues go either undetected or are not properly fixed. "Mold forms underneath sinks when people have a leak and they fix the pipe but they don't take care of the mold," says Walker.

He says things like caulking the sink can help prevent mold. "That's my number one thing I always find—bad sinks," says Walker.

He says that when you look at the sink, look behind it and most of the time you will discover a little crack. "What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it's in a perfect position to create mold," says Walker. The dampness, humidity, and lack of light can turn that area beneath the sink into a mold-breeding ground.

Attic

"You can tell everything about the house by the attic," says Walker. He says other areas of the home can be covered up if a repair had occurred. For instance, if there was a leak and it damaged a wall, with the right contractors and repairs it can be made to look like new and, hopefully, function like new. But Walker says the attic is sort of the eyes to the soul of the home. "In the attic you can tell where all the damage has been," says Walker.

"If you're in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced," says Walker. He adds, "You can tell if the roof is good because you can look right at the wood."

Landscaping

"There should not be moisture or plants next to your house," says Walker. He says there should be a 12 inch barrier between the landscape and the house. Walker says otherwise you run the risk of having the foundation crack and affect the home. What happens is, as the landscape that is too close to the home is watered, the foundation and soil expand. Then, when no watering occurs, the foundation dries up and shrinks and this can cause it to crack.

Remember, knowledge is power, so learning about the home before you close the deal on it will keep you from making a mistake that may cost you extra out-of-pocket money later.

Home prices are falling as well as interest rates and this creates an unusual marriage.  First time home buyers can take advantage of this situation and jump into the market, especially with the one time first time homebuyer credit of up to $7500!  Bear in mind this is a "loan" and has be paid back beginning 2 years after the home purchase in small increments.    Everyone sitting on the fence should make the decision to go forward.  There are great deals to be had out there if time is not of the essence with the numerous short sales flooding the market.  One of the first things you should do is clean up your credit because lenders are going back to their old ways of verifying income to debt ratios and actually making sure that buyers can perform and meet their loan obligations.  Who can blame them with the fall out of Freddie Mac and Fannie May and the other financial institutions falling hard right now?  The main thing is to get off the fence and into a home, or if not a home, buy an investment property.  Call me now for a free home consultation!  619-807-4090.  Make it a great day!  Carolyn Yarbrough

Good news has made its way into the real estate arena this summer -- in the form of the Housing and Economic Recovery Act of 2008. What does this Act mean for you?

It means a lot if you are in the market to be a first time homebuyer -- up to a $7,500 tax credit if you purchase before July 1, 2009. And there's more good news. First time homebuyers is defined as, "a buyer who has not owned a principal residence during the three-year period prior to the purchase."

This means for all those markets that have started to stabilize, now could be a great time to buy.

Let's take a closer look at just what this new incentive entails.

In order to receive the tax credit you must have purchased your home -- single-family detached, townhouses and condominiums, manufactured homes, and houseboats -- between April 9, 2008 and July 1, 2009. Purchase being the closing date.

You must also meet income requirements. But even if you are over the modified adjusted gross income level of $95,000 (single) or $170,000 (married), you may be able to receive partial tax credits.

And getting started with the tax credit program is simple. You claim the tax credit on your federal income tax return. That's it. It doesn't require any other confusing, fancy paperwork.

You can even access the funds quick -- instead of waiting to file your return. The NAHB reports, "Buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding."

What's tricky about this Act -- its a tax credit, meaning that you must repay the government either over the next 15 years (no interest charged), or when you sell the home, if there were sufficient capital gains from the sale.

The NAHB gives this example, "A home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven."

So why do you have to repay this credit? Because this is just that -- a credit, not a deduction. The government's hope is that this credit will stimulate the housing market ... and in turn the economy. By providing first-time home buyers with a little financial boost -- remember it's interest free -- it could do just that.

The housing rescue bill, signed into law July 30, 2008, is full of goodies and not-so-goodies for homeowners and those who aspire to be homeowners. Here are some highlights.

First-time homeowner tax credit
The law will extend a tax credit of up to $7,500 to first-time homebuyers. A first-time homebuyer is defined as someone who hasn't owned a home in three years.

The tax credit is for 10 percent of the purchase price, up to $7,500, but phases out for higher-income homeowners. Homeowners are eligible for the tax credit if they bought after April 8 of this year and before July 1, 2009.

This is a tax credit, not a deduction. It reduces the homeowners' tax bill by up to $7,500 for the tax year in which the purchase was made. If you buy a house this year, you get the tax credit for the 2008 tax year -- the one with a filing deadline of April 15, 2009. If you buy a house next year by the end of June, you get the tax credit for the 2009 tax year. It's a one-time credit; you don't get to keep taking it year after year.

There is a catch, and that is that the money has to be repaid over 15 years, starting two years after you buy the house. That makes the tax credit an interest-free loan. If you take the full $7,500 tax credit, your income tax bill will increase by $500 a year for 15 years. If you sell the house before then, you'll have to pay Uncle Sam the remaining balance.

Complex issues, such as divorce, death, sale of the house at a loss and conversion of the house into a vacation home are accounted for in the law.

Forgiveness to allow refinancing into FHA
A lot of people have fallen behind on their mortgage payments after the rates went up on their adjustable-rate mortgages, or ARMs. And they can't refinance into fixed-rate loans because their homes have lost value, and they owe more than their houses are worth.

The housing rescue law seeks to help these people get out of trouble. It encourages lenders to forgive some of their debt so they can refinance at lower amounts into mortgages insured by the Federal Housing Administration, or FHA.

It works like this: The lender has to forgive all the debt above 90 percent of the home's current appraised value. If that leaves you scratching your head, here is a hypothetical example, using round numbers:

Sometime before Jan. 1 this year, you bought a house for $125,000 and got an ARM for $110,000 after making a $15,000 down payment. But the house lost value. Now it's worth $100,000, based on an appraisal. Meanwhile, the ARM's rate went up and you can't afford the full payment every month.

Under this law, the lender would forgive everything you owe above $90,000. Let's say that you owe $105,000 of that original $110,000 loan. The lender would forgive $15,000, and let you pay off the loan for $90,000. The lender would not be allowed to seek any of that $15,000 later.

That allows you to find another lender who would underwrite a $90,000 mortgage to be insured by the FHA. That loan amount would include the upfront FHA insurance premium of roughly $2,700.

Again, there is a catch. If you take refuge in this program, you'll have to share your home-price appreciation with the FHA. If you sell the house (or refinance the loan) less than a year after refinancing into the FHA loan, the FHA gets all of the house price appreciation. The FHA's cut decreases over the next five years -- but never goes below 50 percent.

What does this mean to the borrower? Take the example above. You refinanced when the house was appraised at $100,000. A little over two years later, you sell the house for $120,000. You split that $20,000 difference with the FHA. In this case, because it's between two and three years later, the FHA gets 80 percent. The FHA would get $16,000 and you would get $4,000.

The equity-sharing arrangement goes like this: If you refinance or sell less than a year after getting the FHA loan, the government gets 100 percent of the home price appreciation. If it's more than a year but less than two years, the FHA gets 90 percent. The FHA's cut then decreases by 10 percent until the five-year mark. Anytime after that, the FHA gets half of the appreciation, no matter how long you have the loan or own the house.

This arrangement will encourage homeowners to keep their FHA-insured mortgages for at least five years, but to refinance before home prices zoom upward again.

Working with home equity debt
The government has been trying all year to encourage lenders to forgive debt so homeowners can refinance their loans for lesser amounts and remain in their houses. Lenders have been reluctant to forgive the debt. The FHA-refinance plan is another way of encouraging debt forgiveness.

Among the sticking points: Many homeowners have home equity lines of credit or home equity loans. In most cases, these lenders will lose that entire loan balance under the FHA-refinance plan. The new law is low on specifics, but it gives the FHA permission to give second lienholders a cut of the home price appreciation proceeds that the FHA collects.

Sure it can be frustrating, exhausting and time-consuming to sell a home in some markets, but don't try to cut corners by failing to make the proper disclosures.

Not only is it illegal for you and your agent not to disclose certain material facts that can affect the value, desirability or salability of a home, most savvy buyers will quickly walk away if he or she suspects deceit.

If you lie by omission and get caught, not only can you face both local and federal charges, you'll still have a home to sell in a less-than-hospitable market. The extra time to sell your home and your day in court could stigmatize the property.

Of course, if you honestly don't know about an issue, or there's little if any chance you could have known, you obviously can't report it.

It's not a bad idea to get a home inspection so you do know. An inspection reveals your attempt at discovery, it will help you determine which items need repair or replacement (not that you are required to make certain repairs), you can use it to price your home and it's a good negotiating tool.

In any event, a good rule of thumb, when it comes to whether or not something should be disclosed: "If you can't figure it out, don't leave it out."

Otherwise, here's are some more specific disclosure tips.

• Each state has a different set of disclosure rules. Your local or state real estate association, as well as your real estate agent, has the proper forms. Both you and the buyer must sign and date the disclosure report to acknowledge delivery and receipt.
  
  
  
• Common items to disclose include, a noisy neighbor, trees uprooting the sidewalk, crime and proximity to busy streets, golf courses, equestrian trails and short term rentals, among a host of others. If you'd want to know, the buyer probably would too.
  
  
  
• Include any problems with construction or home systems. That includes problems with the foundation, roof, windows, doors, electricity, plumbing and the like. For a home improvement completed without a permit (which could itself stop the deal cold), get a permit and make sure the work is to code -- even if that means ripping out the old work and getting it done right.

Rather than reporting "repairs" -- which could imply a defect was permanently corrected -- explain what work you've had done. You called the electrician for faulty wiring at a junction box or you had a plumber fix a leak under the sink, for example

Likewise, you can tell the prospective buyer that you replaced the roof, installed a new water heater, added wind shear protection or installed a sump pump in the basement, etc.

• Disaster prone states often require sellers to disclose information about the home's proximity to fire, flood, earthquake and other hazard zones. It's not a bad idea to know if your regional climate is the victim of climate change, given today's earth-conscious buyer. Do disclose zoning, easement or local ordinance issues and the proximity to other natural hazards like mudslides, landslides, even noise, air and ground pollution, among others.
  
  
  
• Disclose insurance claims. Don't let the buyer discover insurance claims against the property when he or she applies for coverage. Give them a C.L.U.E (for Claims Loss Underwriting Exchange) report. Only home owners can obtain it, but buyers can make the deal contingent upon seeing a copy.

Available to property owners once a year for free from ChoicePoint, the report is a record of claims and claim inquiries on a given property. Insurers use the information to decide to issue a new policy, renew or raise rates.

• A federally mandated lead-based paint disclosure is required for all transactions if the home was built before 1978, but most agents advise making the disclosure for any property. The seller doesn't have to inspect for lead, but must give the buyer materials that discloses the hazards of lead-based paints and related consumer information.
  
  
  
• Among some miscellaneous disclosures that are required or should be considered includes the locations of registered sex offenders, housing market conditions, and, if they happened in the home, certain deaths and certain causes.

If the deceased won't walk into the light and you see dead people, you've got to report that too. Even if you haven't had any bumps in the night, but word's gotten around the house is haunted house, you've got to let the buyer know some ectoplasmic spirit already possesses the home.

IDENTITY FRAUD

We read all about it. It’s in the newspapers, on the news. High profile people becoming victims of identity fraud. It’ll never happen to us. Right?

Think again. Identity fraud occurs at all levels. “Identity fraud” is one of the fastest growing types of white collar crimes in America with over 900,000 victims each year! These crimes are mostly against average working people. Experts estimate the cost nationally exceeds $100 billion annually.

PROTECT YOURSELF FROM IDENTITY THEFT! Identity Theft occurs when someone wrongfully uses your personal identification to obtain credit, loans, services, even rentals and mortgages in your name. They may even commit crimes while impersonating you!

TIPS FOR BEATING IDENTITY THEFT:

1.   Be careful of “Dumpster Diving.” Make sure that you do not throw anything away that someone could use to become you. Anything with your identifiers must be shredded (crosscut) before throwing away.

2.   Be careful at ATMs and using Phone Cards. “Shoulder Surfers” can get your “Pin Number” and get access to your accounts.

3.   Get all of your checks delivered to your bank not to your home address.

4.   Do not put checks in the mail from your home mailbox. Drop them off at a U.S. Mailbox or the U.S. Post Office. Mail theft is common. It’s easy to change the name of the recipient on the check with an acid wash.

5.   Cancel all credit cards that you do not use or have not used in 6 months. Thieves use these very easily—open credit is a prime target.

6.   Put passwords on all your accounts and do not use your mother’s maiden name. Make up a fictitious word.

7.   Get a post office box or a locked mailbox, if you can.

8.   Empty your wallet of all extra credit cards and social security numbers, etc. Do not carry any identifiers you do not need. Don’t carry your birth certificate, social security card, or passport, unless necessary.

9.   Memorize social security numbers and passwords.

Beautiful 1940's era colonial home located in La Mesa's Artist Colony.  7 bedrooms allow you to host overnight guests or just have space to spread out and enjoy the family.  Situated at the end of a private drive you can live in a country like setting but actually walk to restaurants and shopping.  As you enter the home, your eyes will be drawn to the oak floors and the  10 foot high open beam ceilings.  French doors to the outdoor patio add to the charm and brings a lot of sunlight in.  The dining room has french windows looking out to the spacious parklike yard.  Enjoy cooking in this fabulous kitchen which features granite countertops, a 36 inch 5 burner professional gas range, oversized steel range hood vent, and breakfast nook area.  There is also a 32 bottle wine fridge.   Also on the main floor is the master bedroom.  This masterr bedroom is a woman's dream with 3 closets and a small vanity area.  The master bathroom features Travertine floors, dual sinks, a beautiful floor to ceiling tiled shower and a separate soaking bathtub.  The dual vanity sink is gorgeous.   The entire house is filled with architectural details that are reminiscent of the 40's era.  There is a great sunroom off one of the bedrooms and a widow's walk outside another.   The downstairs is currently a media room but is large enough for a pool table or huge family room.  Grill outdoors and enjoy the mature fruit trees and the herb garden that compliment the spanish tile and vast yard.   Whatever your lifestyle might be, this home is the perfect gathering place.  It's a must see!  Call Carolyn Yarbrough 619-807-4090 to schedule an appointment.

As median home prices continue to decline, it seems no community is immune to the slumping real estate market. And yet, during the last quarter a few coastal areas were able to eke out a healthy rate of price appreciation reminiscent of the housing boom.

laceName w:st="on">TakelaceName> laceType w:st="on">OceanlaceType> laceType w:st="on">BeachlaceType>, which experienced a 14.4 percent year-over-year increase in the median price of a resale home during the first quarter of this year. By comparison, resale home prices for the entire county fell 21 percent during the same period, according to statistics released yesterday by DataQuick Information Systems.

In fact, prices declined for all but three of the county’s 59 ZIP codes that recorded at least 20 sales between Jan. 1 and March 31 of this year and last.

Bucking the trend were Encinitas, La Jolla and laceType w:st="on">OceanlaceType> laceType w:st="on">BeachlaceType>, which experienced price gains, while in laceName w:st="on">MissionlaceName> laceType w:st="on">BeachlaceType> and laceName w:st="on">PacificlaceName> laceType w:st="on">BeachlaceType>, the median price remained relatively unchanged from last year to this.

That comes as little surprise to real estate agent Cindy Wing, who sells homes in the 92107 ZIP code, which includes laceType w:st="on">OceanlaceType> laceType w:st="on">BeachlaceType>, Sunset Cliffs and part of Point Loma.

“We’re selling paradise because it’s the beach, and it’s beautiful,” Wing said. “That’s how I feel when I sell. It’s kind of a vacation feel in your everyday life. And it’s affordable compared to areas like Del Mar and La Jolla.”

laceType w:st="on">OceanlaceType> laceType w:st="on">BeachlaceType>’s allure as a funky beach community with a strong sense of neighborhood has helped draw buyers, even in tough economic times, although sales last quarter were still down 37 percent from a year ago. And prices remain high, with the median cost of a home at $829,500, compared with $725,000 a year earlier, according to DataQuick.

Laura Godfrey, an environmental attorney, recently sold her laceType w:st="on">OceanlaceType> laceType w:st="on">BeachlaceType> cottage of two years and traded it in for a significant upgrade to a $957,000 Spanish revival house with an ocean view. While she broke even on the sale of her house, she was able to buy her new house for nearly $350,000 less than the original asking price.

“I feel a little stretched, but I have the income potential, and I plan to stay here for awhile,” said Godfrey, 31. “I joke around that people will be dragging my body out of here in 50 years.

“And I love laceType w:st="on">OceanlaceType> laceType w:st="on">BeachlaceType>. I come from a small town, and this is a small town within a big city and it’s a short commute from downtown,” she said. “I know all my neighbors, and I feel safe as a single female here. Also, I surf, so I can walk down to the beach with my board. I like my life.”

There is little for homeowners to like, though, about the steep plunge in home values in inland areas such as west Escondido, Encanto, Paradise Hills, Fallbrook and Spring Valley, which experienced declines of 30 percent or more last quarter.

Part of the blame may lie with the high number of foreclosures some of these neighborhoods have experienced, which in turn drag prices down for the whole area, say real estate agents.

“I think we’ve all seen that folks are out looking at the bargains, so those are a large percentage of what’s selling – the bank foreclosures and short sale properties,” said Lori Staehling, president of the San Diego Association of Realtors. “They’re generally in poor condition, and the banks want 30-day sales, so prices are lower.

“But it doesn’t necessarily mean every home in the county has gone down by those percentages.”

In Encanto, where the median price of a resale home slid nearly 38 percent last quarter compared with a year earlier, foreclosure sales have been on the rise, said real estate agent Steve Lemack. Making matters worse, many disgruntled owners who have lost their homes have stripped them clean, depressing prices further, he said.

“We had one house where the bank offered the tenants $2,500 relocation assistance, but the day we were supposed to go to give the check, no one was there, and the owners had stripped the kitchen of the counters, the sink and all the appliances, the water heater and the toilets. They even dug up the trees in the backyard,” Lemack said.

“I could’ve sold it for $250,000, but we sold it for $200,000. So when other agents get comps, they use lowball comparisons to push properties down further.”

In west Escondido, typically an area of the city that has higher-priced homes, foreclosures were also a factor, although to a lesser degree. During the first quarter, foreclosure resales accounted for roughly half of the 24 homes sold, according to DataQuick analyst Andrew LePage.

Realtor Joda Mize has a slightly different perspective.

“This area is known as a very nice area, and it has the highest list price of the four Escondido ZIP codes,” she said. “When you have a depreciating market, higher-priced homes won’t sell as quickly because buyers are right now looking for the great deals out there, and they want to capitalize on that.”