Here are some options for homeowners with “underwater” mortgages:

Stay and Pay

Compare the monthly mortgage payment, plus [...]]]> Do you owe more than your house is worth? You are not alone. Many homeowners are finding themselves in with a house that they owe more than its current market value. So what should you do?

Here are some options for homeowners with “underwater” mortgages:

Stay and Pay

Compare the monthly mortgage payment, plus carrying costs like repairs, homeowner dues and taxes, to the cost of renting. If you decide to stay and pay, you may be able to get financial help to catch up with payments if you run into a financial hardship. For example, the Emergency Homeowners Loan Program (EHLP) provides interest-free loans to homeowners who have fallen behind on their mortgages. Make sure to check with a HUD-approved housing counseling agency in your area to find out which programs may be available to you.

Refinance

The Home Affordable Refinance Program (HARP) helps homeowners who qualify refinance into a low, fixed-rate loan. The program has been extended through June 2012. For those who qualify, the terms are similar to those of any other conventional loan, but without the steep mortgage insurance that is typically required when there is less than 20% equity in the home.

Loan Modification

A loan modification means lenders lower the interest rate and payment, either temporarily or permanently. Lenders will also typically extend the term of the loan or to allow borrowers to make up missed payments by tacking them onto the end of the loan or spreading them out over the remainder.

The most well-known modification program is the government-initiated Home Affordable Modification Program. The Treasury Department reports that homeowners who were successful in getting permanent modifications on their loans through this program saw a median reduction in their monthly payment of 40 percent—more than $520 each month—amounting to a program‐wide savings for homeowners of an estimated $4.5 billion.

Short Sale

A short sale is when you sell your home for less than you owe. For the homeowner/seller, the goal is to get the lender to approve a short sale and forgive any remaining debt. Lenders do not always accept a short sale. It seems to make sense rather than allowing a home to go into foreclosure, but the red tape involved in a short sale can sometimes be overwhelming. The Home Affordable Foreclosure Alternative program (HAFA) is a government-initiated short sale program.

Foreclosure

According to RealtyTrac, one in every 605 homes received a foreclosure filing notice in May 2011. Foreclosure can have financial, legal and tax implications. For many homeowners, this is their last alternative.

Bankruptcy

If you need to stop a pending foreclosure, bankruptcy may halt a foreclosure long enough to get a loan modification considered. Filing Chapter 13 can help you catch up on payments over five years without interest. You may be able to reduce or eliminate other debts, freeing up more money to pay toward the home mortgage so you can get back to positive equity more quickly. This can be a very serious decision so it is imperative that you talk with a bankruptcy attorney before the foreclosure or short sale is completed.

The student loan market looked [...]]]> You’ve heard about the Credit Crunch and its tightening effect on lending guidelines in the mortgage industry, but what does it mean to millions of Americans who need student loans to help pay their college tuition? Here is what you need to know from Credit.com.

The student loan market looked pretty bleak during the first quarter of 2008. Not only did the reduced benefits created by the College Cost Reduction and Access Act in 2007 kick in, but for the first time in 40 years, no bonds backed by student loans were purchased during this time. The new bill, which was good news for students, was funded by cutting subsidies to student lenders already feeling the effects of the credit crunch. According to Forbes, this loss of liquidity spooked a lot of investors of the student loan asset-backed securities market, destabilized Sallie Mae, the largest federal student loan provider and servicer, and sent student lenders into turmoil, as at least 50 federal student loan providers scaled back or ended participation in this type of lending.

Since then, Congress has passed legislation and taken other measures to ensure that student loan companies continue to issue federally subsidized student loans. Now, according to the National Association of Student Financial Aid Administrators (NASFAA), most “traditional” students should have no problem getting federal student loans from the remaining 2,000-plus lenders participating in this market.

For those students forced to seek private or alternate education loans, however, this is a much different story. NASFAA says many students could have trouble getting these types of student loans. Because of this, NASFAA added that private student loans should only be used as a last resort when it comes to paying for college.

Which students are affected?

Students attending smaller schools and for-profit career or trade colleges, or other institutions that rely heavily on private lenders, will find it more difficult and expensive to gain access to private student loans than they have in the past – especially if they have credit issues.

Older students, students with poor credit, or those students without a creditworthy co-signer (e.g., mom and dad), are likely to pay higher rates for whatever private student loans they are able to find.

Students whose college tuition is more than their federal loans provide could also be affected if a) a private loan is necessary to make up the difference or b) the student does not qualify for Federal Perkins or PLUS loans or other types of financial aid programs.

It’s important to note that financial aid, including Pell Grants, Federal Work Study, and education tax benefits are not affected by the Credit Crunch.

The number [...]]]> The bidding wars are back! Buyers have finally realized there is a perfect storm for buying, low rates, supply and an improving economy. Supply is down and buyers and according to this article from The Wall Street Journal are finding that they are now competing for homes.

The number of contracts signed to buy homes in February eased slightly from January but posted another strong gain from a year ago—the latest sign that demand for homes is up from the depressed levels of the previous 18 months.

A report March 27th by the National Association of Realtors showed the index of pending home sales, reflecting deals that have gone into contract but haven’t yet closed, rose 9.2% last month from a year earlier, continuing a rise largely fueled by investors’ purchases of foreclosed properties. The index fell by 0.5% from January.

While buyers are starting to step forward, however, home builders and real-estate agents report an elevated level of contracts falling apart, as buyers run into trouble qualifying for mortgages amid tough lending standards.

Another common complaint: low appraisals that come in below a negotiated value, requiring sellers to cut their price or buyers to put more money down in order to keep a deal from collapsing. As a result, the pending sales figures could be overstating actual sales as buyers sign multiple contracts over the course of several months.

Still, analysts say that housing demand appears to be stronger than at any point in the past year. Low prices are luring investors who can convert properties into rental units and make double-digit returns. More first-time buyers could face added urgency to move as landlords begin to raise rents and mortgage rates rise from record lows.

“We are seeing very strong activity out there,” said Ivy Zelman, chief executive of research firm Zelman & Associates. Buyers are tired of deferring moves, and rising rents “have really pushed people off the fence,” she said. “We’re not ready yet to wave the victory flag and say home prices are going up, but we’re confident they’re stabilizing.”

The report showed that purchase activity was up 18.4% and 19% from a year ago in the Northeast and Midwest, respectively, after an unseasonably warm winter. Contract activity fell by 1.8% in the West.

Real-estate agents in many parts of the country say inventories of homes for sale are declining, leaving more buyers competing for less supply. Shrinking inventories could be a consequence of the decline in home prices, which has left more sellers unable or unwilling to sell their homes at a loss.

If you’ve [...]]]> While you’ve probably heard many negative stories about the real estate market over the past few years, there are many buyers who have actually taken advantage of the current market to great success. For savvy homebuyers, the current marketplace has yielded tremendous opportunity—most notably in the area of high-end or luxury homes.

If you’ve always dreamed about buying a luxury property but considered it just out of reach, the market may paint an entirely different picture today. Many homeowners, unable to sustain the costs associated with a luxury home, have been forced to sell. The general decline in home values in recent years has also put downward pressure on the prices of higher-end homes.

Buying a luxury home requires a specific strategy, however, so before you embark on the process, RISMedia offers following things to consider:

1. Select the right agent.

Working with an agent who is experienced and successful in the luxury home market is essential. A luxury-property specialist has the right knowledge and the right connections to help you locate and negotiate an offer on a high-end home.

2. Know where to look.

While traditional house hunts begin online these days, finding the right high-end home will require the right networking. Many of these properties are discovered through word of mouth or referrals. This is where your real estate agent comes in. The right agent will know about luxury finds before they’re even officially on the market.

3. Consider cash.

Many luxury buyers are also cash buyers and cash is king in today’s market. In fact, according to the May 2011 REALTORS® Confidence Index from the National Association of REALTORS®, 30 percent of all purchases between mid-April and mid-May of last year were financed with cash. The number was even higher for luxury properties. Investors and luxury buyers with cash are a welcome sight in today’s credit-crunched market where jumbo loans, in particular, are hard to come by. If you’re fortunate enough to be a cash buyer, your chances of getting a great deal on a luxury property will increase exponentially.

4. Invest the time.

As with any major investment, spending the proper amount of time on evaluating a high-end home is essential. Be prepared for this to take much longer than the walk-through of a typical home. Investigating a luxury property means taking careful note of a variety of details, such as how the home was constructed, security systems that may have been put in place, architectural and design highlights, outdoor areas and special features.

5. Devising the offer.

Making the right offer on a luxury property is tricky—lean heavily on the guidance of your agent. In market’s better day, luxury sellers were known to be very particular about who was buying their property as well as the final selling price, usually having the financial wherewithal to stay in the home until the right offer came along. While these tendencies still exist, many of today’s luxury sellers are in a distressed property situation. Be sure to carefully weigh these factors with your agent prior to making an offer.

Spring fever is a term applied to several sets of [...]]]> Are you suffering from Spring Fever? You may think you are but did you know that Spring Fever is an actual diagnoses with real symptoms? According to Wikipedia, Spring Fever is real. Here is what the online encyclopedia has to say.

Spring fever is a term applied to several sets of physical and psychological symptoms associated with the arrival of spring. In general it refers to an increase in energy, vitality and particularly sexual appetite, often particularly strong in those suffering from Seasonal affective disorder (SAD) and thus experiencing lows during the winter months. It is this sense that inspires the use of the term as a title for several works of literature and entertainment. In some uses however it refers to the opposite, an unexpected loss of energy with the onset of spring.

As a translation of the German term “Frühjahrsmüdigkeit” (lit. “Spring tiredness”), Spring Fever is the name for a temporary mood typically characterized by a state of low energy and weariness experienced by many people in springtime. It is not in the category of a diagnosed illness, but rather a phenomenon thought to be initiated by a change in the season.

Symptoms

In the northern hemisphere the symptoms usually arise from mid-March to mid-April, and depending on the person may be more or less pronounced. Weariness (despite an adequate amount of sleep), sensitivity to changes in the weather, dizziness, irritability, headaches, and sometimes aching joints and a lack of drive are the most common.

Causes

Although the causes of spring fever have not yet been fully resolve^], hormone balance may play a role. According to this theory the body’s reserves of the “happiness hormone” serotonin, whose production depends on daylight, become exhausted over the winter, making it especially easy for the “sleep hormone” melatonin to have its effect. When the days become longer in springtime, the body readjusts its hormone levels, and more endorphin, testosterone and estrogen are released. This changeover puts a heavy strain on the body, which responds with a feeling of tiredness.

In addition, temperatures usually fluctuate greatly in springtime. When temperatures rise, blood pressure drops, since the blood vessels expand. Food also plays a role. In winter one tends to consume more calories, fat and carbohydrates than in summer. But during the hormone adjustment period the body requires more vitamins and proteins instead

The Benefits

•Solar power is predictable. It is easy to predict how much electricity your system will [...]]]> Everywhere you turn people are saying “go green”. More and more people are looking for alternatives to heat and power their homes. One alternative is solar energy. There are both benefits and pitfalls to solar energy.

The Benefits

•Solar power is predictable. It is easy to predict how much electricity your system will produce because the amount of sunlight that hits your roof doesn’t vary that much. This means it is also easy to predict how much you will save in electric bills.

•Solar power will lower your electric bill. Solar power will offset the usage of conventional electricity especially in places where the price for grid power is high — like California, Hawaii and much of the northeast.

•Solar power is safe and clean. Solar energy systems produce emissions-free electricity.

•Installing solar panels may also help you qualify for a tax credit. For more information on energy tax credits click here.

The Pitfalls

•Solar power can be predictable but it is also variable. In other words, it can be predicted on a long term basis but not on a daily or even weekly basis. For example, solar panels won’t produce electricity at night.

•Solar power can be a more expensive alternative in the short term. The price of solar panels continue to fall but there are many aggressive financing options. If your state has no tax incentives and electricity prices are relatively low solar would be an expensive option for you.

•Some homes just don’t work. The roof must be in good condition with an unobstructed southern exposure. If the house is surrounded by trees and tall buildings solar panels will probably not work. A ground-mounted system is an option only if you have sufficient space in your yard.

Here is a checklist to help keep you on track:

60 Days Before You Move