As a potential new homeowner or even as a potential seller, it’s not likely that you are acquainted with all the inner materials of a home. It is important to reassure buyers that the home is safe and does not contain any potential health hazards. Most buyers seek an updated home inspection before closing on a new property. These inspections are critical to clearing hurdles down the road that may slow the sale of property.

One of the most common surprises new homeowners and sellers confront is asbestos in older structures. Indeed, asbestos containing materials (ACMs) are now banned for use in the United States. Many older buildings still contain these products, which are generally safe, but homeowners should be aware of where they are and when they become hazardous.

Asbestos was included in thousands of construction products and still exists in nearly 80% of homes built prior to 1978. Common asbestos materials include attic insulation, ceiling tiles, and pipe lining. Asbestos was particularly adept at insulation and prevention of temperature transfer and was used extensively until adverse health effects began to manifest in those who worked with the material frequently.

It is only when asbestos containing materials are compromised or very old that they become hazardous. Asbestos products under these conditions are rendered “friable.” Home inspection companies should be able to identify these circumstances and advise you on a course of action. When asbestos material is friable, asbestos fibers can be released into the air, potentially endangering those in the area.

Inhaled asbestos fibers lodge in the body’s inner tissue and have been conclusively linked to the rare cancer, mesothelioma, commonly referred to as asbestos cancer, in addition to many other respiratory disorders. There are few options for mesothelioma treatment or curative therapies for other conditions caused by sustained asbestos exposures. Homeowners need to be aware of potential hazards that may exist so they may be able to avoid potentially harmful effects of hazardous asbestos.

Again, most asbestos containing materials will not pose an immediate hazard and an informed buyer will not be turned off by their presence if they’re reassured of their safety by a professional opinion. These simple precautions can be taken to assure that both sides know that they and their families will be happy and healthy in their new home.

At Bandy Homes, we can guide you through the inspection process so that you will know that the home you are buying or selling is safe. If you want a home built after contractors stopped using asbestos, we can guide you to new or recently built homes in Parker, Colorado or other fine cities in the Denver metro area.

Marianne Bandy

In reality, this is risky business - and, unless you really can't make the payment, unnecessary.  In the past, private lenders who were wiling to work with borrowers would not start talking until the homeowner was delinquent.  Following the lead of the Federal Making Home Affordable program, many lenders will now help borrowers if they having trouble making the payment, not just because they are delinquent. 

You only have to show that you are at risk of imminent default.  If your mortgage has skyrocketed to an unaffordable level or you anticipate it will, if your income has changed or will, or you are undergoing some other hardship that will make it hard to make the payment, your lender may help you rather than letting your home fall into foreclosure.  In this case, you will have to provide evidence of the hardship or change in circumstance.

If you decide to take matters into your own hands and skip payments, the lender might not take it lightly if you appear to have the means to pay.  Among other things, they will pile on the late fees and penalties.  Extra charges can pile up quickly!

Delinquency will disqualify you for refinancing through the Federal program and many lender-based programs.  Late payments also affect your credit score, especially if they are recent.  You might find it harder to get credit when you need it and, in the current era when credit issuers are slashing credit lines as a preventative measure, you might find yourself with less credit flexibility now.  Some of this may change with recently-passed credit card changes but most of the new rules will not be effective until 2010.

Skipping a payment could backfire and cause you unplanned trouble, but regardless of your particular circumstance, there is plenty of housing counseling available to offer direction about how to make it in this tough economy.  Avoid scammers who promise debt relief and mortgage reduction who can make your problem worse instead of better.  Seek help from Colorado Foreclosure Hotline right here in Denver or call (888) 995-HOPE (www.995hope.org).  Even if you have gone to the government site and don't think you qualify, check with these reputable counselors or your lender directly to try to work out something.  Also, as I am a Certified Distress Property expert (CDPE), please feel free to give me a call at 888-892-2599 or check out our DenverAvoidForeclosure website.

If you are interested in selling your home on short sale or in buying bank owned properties in the Denver area, Bandy Homes has the experience and patience to work through the process with you. 

Marianne Bandy

Beautiful Castle Rock Real Estate

It’s amazing, isn’t it? The country has been nearly crushed by the foreclosure crisis. All the great economic and social thinkers in the country are struggling to find a solution. Yet, you listen to late night TV or read the flyers stuck on telephone poles all over town and you hear that someone already has the answer! They will share it with you, if you just call for free mortgage help…

When you call, typically, the company promises to solve all your foreclosure problems, a dream come true! Unfortunately, most of these companies are scammers. Some are legitimate, but many are schemers who have pulled names of delinquent homeowners from public records and responses to fast talking ads on late night TV. 

Usually they want an upfront payment, often equal to a month’s mortgage payment. The company may pocket the fee, while presenting the homeowner with a phony document that the foreclosure has been set aside. They may even ask the homeowner to sign over the deed to the property. The homeowner may think all is well until he receives a bankruptcy filing in the mail, filed in his behalf, without his knowledge. This leaves the homeowner with more legal bills, a poor long term credit picture as he will have difficulty buying or renting for 10 years, and perhaps, no home if he has signed over the deed. In some cases, the company does not even contact the lender. 

Foreclosure scams fall into three main categories:

Phantom help: The company promises to contact your lender, which they may or may not do, regardless of what they tell you. They may fill out some basic paperwork you could have completed yourself. 

The bailout: The company offers to buy the home and rent it back to you until you can buy it back. Many times, they pocket what you pay while never dealing with your lender so you end up with no property and no place to live.

The bait and switch: The company may have you sign documents to make the mortgage current, but actually you are signing over your home.

There are many variations on these scams but in any case, you usually end up in worse shape. Not only are you out the money you have paid, but you may have no property or, if you have stopped paying your mortgage on the belief the company was helping you, owe your lender more than you did before you called.

At the moment, we have a free Federal program called Making Home Affordable that will help many homeowners. Even if you do not ultimately qualify for this program, there is plenty of free or very low cost help available from HUD-approved counselors and non-profit groups that will either help you stay in your home or move on to a new stage in your life. Ironically, since the government started its program, foreclosure scams have actually been on the rise. 

Some scammers have even set up shop with company names or websites similar to those of reputable organizations. Hope Now Modifications, a flagrant New Jersey company, claimed affiliation with the Hope Now Alliance. Their website www.financialstability.org, which directs customers to a variety of payday loan, stop foreclosure, and debt relief sites, plays off domain-name similarity with www.financialstability.gov, a U.S. Treasury site.

At this point, the scammers have incurred the wrath of the President, the Treasury, the Department of Justice, the Department of Housing and Urban Development, and the Attorney Generals of several states. All have issued warnings to homeowners and have pledged better government cooperation to stop this type of fraud.

Late night TV and telephone pole ads cannot solve your problems.  However, as a Certified Distressed Property Expert (CDPE), I am committed to helping you stop foreclosure in Denver. Before you consider paying anyone to help you, check out our Denver avoid foreclosure website for tips on how to avoid foreclosure scams. At Bandy Homes, we can help you arrange a short sale or explore other options.

Marianne Bandy

If you wanted to buy a Denver home and someone said to you, “Here’s $8,000 to help you out!” what would your first response be? I’m betting it would be, “Great! Thanks! Can I use the $8,000 on my down payment? Currently, the answer is “No!” but that may be changing.

 

On May 12, 2009, Secretary of Housing and Urban Development Shaun Donovan, speaking before several thousand Realtors at the Realtors Midyear Legislative Meeting and Trade Expo, told the group that this would change for FHA borrowers. FHA-approved lenders would be able to “monetize” the credits through short-term bridge loans so that borrowers can apply the funds at closing.

 

In the past, new homebuyers would only receive the credit when they filed their 2008 or 2009 income tax. Those who buy a home this year can either wait until next year to claim the credit or file an amended 2008 return. 

 

While $8,000 in hand is great to have even after a person buys a home, the National Association of Realtors (NAR) has argued that having the money available for a down payment will be a better stimulus than offering it later. The group also advocates expanding the credit to include all homebuyers at all income levels and expanding it past its November, 2009 expiration.

 

When coupled with falling home prices, high inventories of foreclosure and bank-owned properties at bargain prices, and low mortgage rates, the $8,000 credit is expected to lead to increased housing sales beginning in early summer – especially in view of the Donovan announcement. The ability to use the money as part of a down payment is expected to turn a lot of fence-sitters into new buyers. NAR economist Lawrence Yun anticipates that home sales will be up 10-20% in the second half of 2009.

 

The predicted economic recovery in housing is good news for the industry, as housing prices in Denver and elsewhere prices will become more stable. Buyers looking for a bargain may find fewer “steals” amidst the deals they can make.

 

If you are thinking about buying a home, now is the time to make your move. Your Denver Realtor at Bandy Homes  can tell you the most current information about the credit and help you find the best lender to help you apply this credit to your down payment – after you have found a great new home in Highlands Ranch and other communities in metro Denver.

 

Marianne Bandy

 

 

 

 

 

 

You read everywhere that housing values are dropping, yet your property taxes haven’t budged. The fact is, government taxing agencies seldom reach out to homeowners and tell them to send less. In a climate where revenues that fund public services are declining, don’t expect the government to make the first move to lower your taxes.

 

As a homeowner, you do have the right to appeal the amount of your property tax if you think it is unfair or incorrect. To make this happen in Colorado, you must file a petition with the County Tax Assessor’s office within 30 days of when your tax notice was mailed to you. Most people do this right after they have received a “notice of value” letter, which comes out every two years in May. The County Assessor will turn your case over to a Board of Review, which will consider your case, based on the documentation you have provided.

 

There are three basic scenarios where your petition is likely to be resolved in your favor:

 

 

The first two cases are easier to prove than the last one. What taxpayers often don’t realize is that the assessor bases his valuations on past pricing, not current values. In Denver, current tax assessments are based on sale prices of homes between January 1, 2007 – June 30, 2008. To make a case that your home is valued too high, you would need to provide documentation about home sales in your neighborhood in that time frame. Even if the property has taken a nose dive in the past year, the county won’t consider any fall off in value if it occurred after the cutoff date. Actual 2009 sales prices in Denver metro neighborhoods won’t be reflected on tax statements until 2011.

 

What’s interesting to note is there is a time lag for tax value increases too. If area property values have gone up or if you have made improvements to your property that come to the attention of the assessor, you won’t see the increase on your bill for a year or two.

 

What you’ll need to prove your case to the review board are market comparisons and sales prices, information that a local real estate agent will have. You can also hire an appraiser. If you have pictures that show damage to your home or conditions in your neighborhood that might affect the value of your home, these might help you state your case.

 

Check the assessor’s report that lists the features of your home that are included in the tax valuation. If things that you don’t have are included – like extra bedrooms, extra bathrooms, a finished basement, a deck, or a garage – you could provide the appraisal report along with pictures or floor plans to clarify what your home includes.

 

The review board is composed of people familiar with the area, so they should be tuned into factors like foreclosure rates, rising crime rates, and widespread storm damage. Along with your individual circumstances, they will take these factors into consideration when making their recommendations to the county.

 

The good news is that your hard work might result in a lower tax value for your property. The dollar value of the taxes you pay may go down and having a correct value on the books for your home will be a useful starting point for future years.

 

Getting ready to sell? The Bandy Home Team can help you determine how much your home is worth. Check out our Denver home search website for helpful tips on pricing your Denver home for sale. You can also sign up for a monthly email update of homes sold in your neighborhood.

Once in their life, everyone deserves to have a brand new house. There is nothing quite like taking possession of a home where no one has lived before! Your kids’ pictures require the first nail holes to be put in the wall.  You get the first shot at landscaping and decorating the way you want without having to undo someone else’s questionable taste! This euphoria may only last until toys, dirty socks, and junk mail have cluttered the place up a bit, but it’s a treat, none the less.

 

There are a few things to keep in mind to make sure that your new home buying experience is a great one. At the moment, there is plenty of affordable new housing around so buying “new” rather than pre-owned is an option that might have been out of range just a couple years ago for some buyers.

 

First, before you start serious looking, get pre-approved for loan. This will tell you how much the lender thinks you can afford. Think about how the payment at different interest rates will impact your lifestyle. When you go looking at homes, have a ceiling in mind and stick to your price range. Don’t set yourself up to be a foreclosure statistic! If you have a $50,000 income, looking at $1 million homes might be an entertaining way to spend an afternoon (for you, not the realtor), but these homes or any that are way out of your price range pose a risk for you. It’s easy to be seduced by a beautiful home. Model homes are set up to be appealing, while the sales people are always convincing when they tell you that you and the house are made for each other! Having a realtor represent you with the builder will help make sure you don’t get carried away by the dazzle of a new home. A realtor can represent your interests at no cost to you, because the fees are paid by the builder.

 

Before committing to buy the property, it’s a great idea to get a few good faith estimates (GFE’s) of the mortgage costs, including the APR (annual percentage rate), as well as the terms. Builders usually offer financing that might at first glance appear to be the best deal, but having some other lenders lined up for comparison might reveal hidden fees and give you some negotiating power. Especially when inventories of new homes are high, as they are now, offers from builders will often include upgrades to use their lenders. Shrewd but polite buyers who have a realtor representing them can often negotiate an even better deal.

 

Though the model home may look flawless, it is a good idea to ask the neighbors about their experiences with the builder. It’s important to know what kind of problems they had and even more important to know the builder has responded and how long it took him to respond. If you see too many red flags, it’s time to reconsider. If you’re in love with the house, breaking up is hard to do - but your love could quickly turn to hate if you are stuck in a house with lots of problems and a poor support system. Here again your realtor can offer advice.

 

Once you’ve made an offer on the house, make sure to pay for a home inspection from an independent firm. Just because the home is new doesn’t mean it’s perfect. The builder may say he will stand behind certain types of problems that come up in the first year, but an inspection will bring them to light. Fifty perfect of new home inspections uncover a flaw in design, materials, or workmanship which could prove costly to the homeowner later on.

 

If you have bought a partially completed home or one you picked from a plan, you will probably drive by occasionally to observe the progress. It’s a good idea to take some pictures of the progress that might later document problems in construction. (They will also serve as a memory of your largest purchase!)  Some excited friends who stalked the site of their new Aurora home noticed that something did not seem right when the foundation was laid. They weren’t engineers, so they didn’t know what. Their photos helped the builder troubleshoot a problem with the concrete and later alerted the home inspector to test for leaks in the foundation.

 

Before you close on the home, walk through the home with the builder and develop a punch list of problems that need to be fixed. The builder will mark these items with tape so that his crew will know what to fix. Once the repairs are complete, it’s a good idea to have another walk through. The builder may pressure you to close before everything is fixed but once you’ve closed, you lose leverage, so don’t give in.

 

At Bandy Homes, we can help you find the home of your dreams, whether it’s new construction or part of our existing Denver housing stock. The Denver real estate market has homes to suit any taste and price. Check out our website for great tips for Denver home buyers.

 

Marianne Bandy

Research Quality Denver Schools