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Foreclosure Filings Fall yet Processing Takes Longer
By Steve Cook
RISMEDIA, Friday, July 15, 2011— Foreclosure filings in the first half of this year fell 25 percent from the last six months of 2010 and are off 29 percent from the first half of 2010.

Though filings rose 4 percent in June from May, they were down 29 percent from June 2010. June was the ninth straight month where foreclosure activity decreased on a year-over-year basis, according to RealtyTrac’s Midyear 2011 Foreclosure Market Report.

However, the time that properties foreclosed were in the foreclosure process rose nearly 15 percent from a year ago. It now takes an average of 318 days from the initial foreclosure notice to the completed foreclosure, up from a revised 298 days in the first quarter and up from 277 days in the second quarter of 2010.

The foreclosure process took the longest in New York, at 966 days on average for properties foreclosed in the second quarter, followed by New Jersey at 944 days and Florida at 676 days. Texas posted the shortest foreclosure timeline, at 92 days for properties foreclosed in the second quarter, followed by Virginia at 106 days.

Foreclosure filings were reported on 608,235 U.S. properties during the second quarter, a decrease of nearly 11 percent from the first quarter and a decrease of 32 percent from the second quarter of 2010. The second quarter total was the lowest quarterly total since the fourth quarter of 2007. All categories of foreclosure were down both on quarterly basis and annual basis in the second quarter.

“Processing and procedural delays are pushing foreclosures further and further out - we estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later. This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number,” saysJames J. Saccacio, chief executive officer of RealtyTrac.

Nearly 5 percent of all Nevada housing units (one in 21) received at least one foreclosure filing in the first half of 2011, giving Nevada the nation’s highest foreclosure rate during the six-month period despite continued decreases in foreclosure activity. A total of 53,217 Nevada properties received a foreclosure filing from January to June, a decrease of 17 percent from both the previous six months as well as from the first six months of 2010. Overall Nevada foreclosure activity decreased on a year-over-year basis for the fifth straight month in June despite a 19 percent year-over-year spike in REO activity.

Arizona registered the nation’s second highest state foreclosure rate in the first half of 2010, with 2.82 percent of its housing units (one in 36) receiving a foreclosure filing, and California registered the nation’s third highest state foreclosure rate, with 1.96 percent of its housing units (one in 51) receiving a foreclosure filing during the six months.

Other states with foreclosure rates ranking among the nation’s 10 highest were Utah (1.65 percent), Georgia (1.50 percent), Idaho (1.49 percent), Michigan (1.34 percent), Florida (1.28 percent), Colorado (1.19 percent), and Illinois (1.15 percent).

A total of 263,500 California properties received a foreclosure filing in the first half of 2011, the nation’s highest total but down 13 percent from the previous six months and down nearly 23 percent from the first half of 2010. California foreclosure activity decreased on a year-over-year basis for the 19th straight month in June, but default notices and REOs increased on a month-over-month basis, continuing a sawtooth pattern in the monthly numbers.

With 113,641 properties receiving a foreclosure filing in the first six months of 2011, Florida documented the second highest state total despite a nearly 55 percent decrease in foreclosure activity from the previous six months and a nearly 59 percent decrease in foreclosure activity from the first half of 2010. Florida foreclosure activity decreased on a year-over-year basis for the eighth straight month in June, but default notices spiked 44 percent from May and scheduled auctions jumped 17 percent from May.

Arizona’s 77,525 properties with foreclosure filings in the first six months of 2011 was the third highest state total. The state’s foreclosure activity decreased nearly 7 percent from the previous six months and was down 15 percent from the first half of 2010.

Other states with first-half totals among the 10 highest in the country were Michigan (61,005), Georgia (60,870), Illinois (60,636), Texas (55,442), Nevada (53,217), Ohio (44,419), and Colorado (25,744).

10 Easy Upgrades to Add Style & Value to Your Home

Sometimes, it’s the little things that make the biggest difference in the value and appeal of your home. Whether you’re trying to sell your home of just spruce up the place, here are 10 easy ways to get started.

    1. Update hardware on cabinets and drawers
    2. Replace towels and rugs in the bathroom(s)
    3. Add overhead lighting or wall sconces to brighten rooms
    4. Declutter small spaces and closets with DIY storage kits
    5. Wash or power wash the exterior of your home (especially windows)
    6. Add area rugs to throw in a hint of color
    7. Hang a mirror in small rooms to give the illusion of more space
    8. A fresh coat of paint on walls and trim brighten any room
    9. Try a fresh new color on your front door for character
    10. Mow and mulch your lawn even in the cooler months
Make a plan. Set a budget. Get started!
By Gregory Karp RISMEDIA, April 28, 2011—(MCT)—As weather warms in most parts of the country, many homeowners will incur the expense and hassle of hiring professionals to help beautify their yard through grass mowing, landscape design or tree trimming and removal.

 

These specialty services can be quite costly; that's why it's important to hire the right landscaper at the right price.

 

"The condition of your lawn has a big effect on the look and value of your home, whether you have a complicated landscaping plan with water features and/or an expanse of grass and flowers," says Angie Hicks, founder of service-ratings website Angie's List. "If you're hiring someone to help maintain your lawn, match their qualifications, training and local reputation to your property needs."

 

Here are the steps you can take to help get the best value from your landscaping pros.

 

Schedule Events: Not every homeowner is an expert on lawn, yard and tree care, so it helps to get several pros out to your property to advise you on what needs to be done and what the options are. It's a free education about your property.

 

"The most important advice is to talk with several firms," said Robert Krughoff, president of Consumers' Checkbook, which offers ratings of local service companies to subscribers in seven U.S. markets. "Use them as your consultants."

 

To get names of companies for your initial visit, you can use the usual method of asking for referrals from neighbors and local friends and family. You can also go online to service-review websites. Good paid sites include Angie's List and Consumers' Checkbook at checkbook.org. You might get reviews and comments on some companies from such free sites as Yelp.com, Kudzu.com or even the firm's own Facebook fan page.

 

You can cross-check names of any finalists with the Better Business Bureau, bbb.org; pay attention to the number of complaints lodged against the companies.

 

If all you need is simple mowing, raking or weeding, you might not need a professional at all. A hard-working, entrepreneurial teenager up the street might yield the best deal, Krughoff suggests.

 

Get Price Bids: Once you know what you want, request apples-to-apples estimates from at least three companies.

 

"You'll find big price differences on these things," Krughoff says.

 

Checkbook used one major metropolitan area as an example and found that the same tree-removal job could cost from $1,935 to $6,300, depending on the company. Prices on a smaller tree job ranged from $375 to $1,100. For lawn care, Consumers' Checkbook found one case in which the same promise for the lawn brought prices ranging from $229 to $805.

 

But pricey firms do a better job, right?

 

Not really, Krughoff says. His publication found virtually no correlation between price and quality in lawn care and tree services, meaning you don't necessarily get what you pay for. But that's not true in all cases. Pricier garden nurseries were found to generally offer a higher quality, Consumers' Checkbook found.

 

Get it in Writing: Especially for bigger jobs, be very clear—in writing—about what a firm is expected to do. In the tree-removal example, will they haul away debris? Will they cut up wood into firewood length and leave it? Will they remove a stump? If so, how? By cutting it to grade level or grinding it?

 

"A lot of times, people just don't get specific," Krughoff comments.

 

For lawn care, do you expect a green lawn quickly or can you be patient for a care program that will strengthen root systems and be healthier in the long run?

 

If you're hiring a company to install plants, note the replacement policy. Angie's List suggests not hiring a company if it won't promise to replace and replant any plants that die despite proper care.

 

Get Credentials: Make sure the company has liability insurance and workers' compensation insurance. Some yard work, especially in high trees, is dangerous to people and property. And for some jobs, you might look for certifications and membership in professional organizations—such as the Association of Professional Landscape Designers—Angie's List suggests. For tree service, consider companies with a professional arborist on staff.

 

Be Wary of Add-ons: If a landscaper or lawn service recommends various fertilizers, sprayings and treatments, you want to hear a compelling case on why it's necessary and evidence that it will make a difference, notes Krughoff.

 

Paying: Ideally, you will pay nothing until the job is done, which gives you the most leverage to ensure it's done right. But some companies will require a deposit. Avoid paying the entire amount upfront, and use a credit card if you can. That allows you to dispute the charge with the credit card company if the service was incomplete or not done right.

 

National Companies: If you're talking about weed-and-feed services, you have a number of options for national companies, such as Lawn Doctor, Scotts and TruGreen. In a 1008 report Consumer Reports notes that service varied, even within a company. Sometimes technicians were incorrect about their assessments of lawns, as judged by the experts Consumer Reports used. For example, some said the lawns had crabgrass, thatch buildup or insect problems, when in actuality they did not. However, the report did not evaluate the quality of services performed by these companies.

 

Consumers' Checkbook finds local lawn care firms tend to have higher customer-satisfaction ratings than chains, and prices can be comparable, says Krughoff.


Update on First Time Homebuyer Credit and Tax Refunds
RISMEDIA, March 26, 2011—The IRS recently released information on processing issues that are impacting a small percentage of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. While most of these returns are processing normally, the IRS recognizes the hardship caused by delayed refunds, and it has assigned additional staff and resources to address the issues promptly.

It is important to note that taxpayer returns claiming a home purchase in 2010 are not affected, and those returns are being processed as are the vast majority of other homebuyer returns.

Here’s an update on the source of the processing issues:

1. Married Filing Joint taxpayers who received the FTHB credit on a 2008 purchase

There seems to be an identified processing issue primarily impacting refunds for married couples filing joint returns this year who received the First Time Homebuyer credit on their 2008 tax return. This credit was an interest-free loan, and must be paid back beginning this year under the provisions of the law.

This issue, related to Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, primarily impacts Married Filing Jointly taxpayers who filed their tax returns this year before Feb. 22. The IRS is working aggressively to manually process tax returns for this group of taxpayers. It expects most, if not all, of these refunds to be available by April 5, and others the following week. (The date assumes that there are no other issues with their return, and that their refunds are not subject to any offsets for unpaid federal taxes or other debts.)

2. Taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home

3. Taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500)

These two issues require changes to IRS’ core tax processing systems. The IRS is actively working on the development and testing of the required changes that will allow these impacted tax returns to be processed and appropriate refunds issued. The IRS does not currently have a definitive date for when these changes will be complete, although it will be in April.

What should taxpayers do?

The IRS understands that taxpayers affected by this issue are anxious to get the status of their refund. For those who have already filed, no action is necessary. They can check “Where’s My Refund” at www.IRS.gov for updates. Because the IRS is already aware of this issue and is taking corrective action, there is no need to call.

For those who have not yet filed and are making a repayment of a First Time Homebuyer Credit this year, there is a simple step taxpayers can take to help speed processing. Couples filing a joint return for tax year 2010 who received the credit on their jointly filed 2008 tax return should file two 5405 forms, one for each taxpayer. For couples filing a joint return for 2010 but who had a different filing status in 2008 and only one spouse received the credit, the IRS recommends filing one Form 5405 for the taxpayer who received the credit.

For more information visit www.IRS.gov.

Banks Spruce Up Foreclosures to Boost Sales
By Mary Ellen Podmolik
RISMEDIA, March 19, 2011—(MCT)—Bill Schramm and Bethany Siwicki scoured property listings for three months before agreeing to see a home in Round Lake Beach, even though its online pictures didn't look promising.

"It looked like a piñata blew up in there," Schramm said. Every room was a different color, and the only way to tell the carpet once had been white was looking at the furniture marks.

But the home they visited bore little resemblance to the pictures. The walls were white, new carpet had been installed, and repairs made. The recently engaged couple immediately submitted an offer and are waiting to close on their first home purchase.

Sprucing up a home to sell it faster and for more money is a strategy frequently advocated by real estate agents. In this case, though, the seller is Wells Fargo Bank, and the home Schramm and Siwicki are buying is a foreclosure.

There are still plenty of dilapidated foreclosures on the market marred by water damage, mold, broken windows and missing plumbing fixtures, properties that hold little appeal except to investors and professional rehabbers.

But as the quality of foreclosures and the communities where they are located has improved, so, too, has interest in them by consumers. To entice those buyers and lessen their inventory of real estate owned foreclosed homes, commonly known as REOs, banks are spending thousands of dollars on some foreclosures. In addition to new paint and carpet, floors are being refinished, old windows are being replaced, and leaky roofs are being repaired.

The strategy benefits the banks and home buyers, who otherwise would have trouble securing mortgages on homes that a lender could term "uninhabitable" because of needed repairs. At the same time, it helps the broader real estate market because while the foreclosures still sell at a discount, it is not at the fire sale prices of unlivable properties.

For traditional home sellers, the trend of banks plowing money into foreclosures means they will have to be more realistic in their pricing, because the foreclosure for sale down the street may look a lot more inviting to prospective buyers.

"Foreclosures used to be fewer and far between," said real estate agent Ray Millington. "The problem is, we say we'll concede that sale, but what happens when another one pops up. It becomes an ongoing thing. It's not like you have only one in the subdivision anymore."

Real estate agents say they are having the same conversation with banks that they have with any seller, and it starts by identifying the target customer for a property. If the answer is an owner-occupant, agents recommend fixes that can range from a few thousand dollars of paint to $25,000 of kitchen upgrades. In the past, banks rejected such suggestions, viewing them as throwing good money after bad, but now some are heeding the advice.

Last month within the city of Chicago, 207 of the 472 single-family detached homes that sold were foreclosed properties. An additional 62 were short sales, transactions in which the homeowner sells the home, with the lender's permission, for less than the amount owed on the mortgage. Combined, distressed properties in February accounted for 57% of all single-family detached sales and 46% of all condos, according to the Chicago Association of REALTORS®.

Fannie Mae repossessed more than 262,000 single-family homes nationally last year, and as of Dec. 31, its inventory of single-family REOs was almost 163,000.
Under its "first look" program that began in September 2009, Fannie Mae will only consider offers from owner-occupants or buyers like nonprofits during the first 15 days a home is on the market. Fannie sold nearly 29,000 homes to consumers under that program during its first year.

Buyers are jumping on the best REOs, and keen interest can lead to multiple offers. "The ones that are in good shape, people are snapping those up," said Mike Stodola, a real estate professional. "The ones that are left are ones that need major work."

Despite about $30,000 in improvements, the house Schramm and Siwicki will buy for $125,000 still needs work. The couple's first project is to remodel the kitchen. "It's probably the most hideous livable house you'll see, but I can fix it," Schramm said. "Nothing even comes close to this house in terms of value per dollar. There's a ton of houses out there that cost less than $125,000. Do I want to buy them and move into them? No."

It's not just the house and the neighborhood that help lenders decide whether to make presale investments. It's also the potential risk of vandalism. "There's no sense of putting a furnace in there if it's going to walk away the next day," said real estate professional Abe Rabah.

In Barrington Hills, Ill., down the street from one well-appointed home listed for $890,000, is another property, a foreclosure that went on the market at $525,000. The Tudor-style home attracted some foot traffic but no serious consideration.
The house was removed from the market and almost $20,000 of updates and repairs are being made before it's relisted. "We're doing everything that is going to make the property look better, but also make it financeable," said Connie Ritchie, a real estate agent. "When you walk in now, you say this is nice and clean. This is something I can work with."

(c) 2011, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 31 from 10:00 AM to 4:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 18 from 1:00 PM to 5:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 24 from 10:00 AM to 4:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 25 from 1:00 PM to 5:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 11 from 1:00 PM to 5:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 1 from 10:00 AM to 4:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 10 from 10:00 AM to 4:00 PM.

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Mossy Oaks, Beaufort  -  We invite everyone to visit our open house at 2541 Azalea Dr. on July 7 from 4:00 PM to 6:30 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 3 from 10:00 AM to 4:00 PM.

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Hearthstone Lakes, Hardeeville  -  We invite everyone to visit our open house at 245 Hearthstone Dr. on July 4 from 1:00 PM to 5:00 PM.

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