Barb Bednarski

WHEDA is Back

2010-02-10T19:04:00Z

Wheda is back

Effective March 1, 2010

First time Home Buyer

30 year fixed rate 45 day rate lock

Existing Single Family and 2 families over 5 years old

Maximum LTV:
To 97% minimum credit score 660
Over 97% minimum credit score 680

Maximum debt ratio 45%

Minimum borrower contribution $1000. 3% borrower funds for 2 unit properties

Home Buyer Education is required

No Mortgage Insurance

~Barb

Historic Cedarburg's Annual Winter Festival

2010-01-28T22:27:00Z

Come to historic Cedarburg for it's 36th annual Winter Festival, "Romancing the Snow", on Saturday and Sunday, Feb. 13-14. On Saturday the festivities will take place from 8 AM until 10 PM; Sunday from 8 AM until 3 PM.

Activities will be taking place all day and most events are free. Some of the events are:

"Ice of Hearts" Ice Carving Contest
"Fools Rush In" Bed Races on the Ice
"Big Crush" Barrel Races on the Ice
"Eat Your Heart Out" Chili Cook-Off
Iceberg Open Golf Tournament
"Baby It's Cold Outside" Grand Parade
"Queen of Hearts" Art Show
"Sweets for the Sweet" Pancake Breakfast
"Sentimental Journey" Tractor Hayrides
"Candy is Dandy" Egg Hunt
"Cool Brew" Beer Tasting Party
"Embraceable You" Skating on the Mill Pond
"Puppy Love" Alaskan Malamute Weight-Pull Contest
"XXXOOO" Family Fun Stuff
"All's Fair in Love & War" Sno-Ball Tourney

Come and join us for the fun on one or both of the days.

~Barb

You Don't Need to Read by Candle Light

2010-01-25T23:06:00Z

Candle light is nice for a romantic dinner or a relaxing moment. It creates a special feeling when we have an electrical storm and the power goes out; but we want lights when we read, work, or go to the bathroom in the middle of the night. Lighting is eighth on the list of largest electricity consumers in the house (see the blog post Top 25 Electricity Users in American Homes), but it is also the easiest to cut.

INSTALL COMPACT FLUORESCENT LIGHTS---The new CFLs are smaller, brighter, look better, and start instantly; also, the price has come down to just a few dollars per bulb. These bulbs last 8-10 times longer than regular bulbs so you save on replacement costs over several years. Install CFLs in any light fixture that is going to be on more than 2 hours at a time. If you plan to use a CFL in a light with a dimmer make sure you buy a CFL that is rated for a dimmer. This is also true for electronic timer controls. CFLs use 60-70% less electricity, burn cooler, and last longer than regular lightbulbs.

You are not able to use CFLs in all of the older light fixtures. If this is the case, consider buying a pin-base CFL light fixture when buying a replacement fixture. You will see an ENERGY STAR label on the box. The total annual use cost of a 75w bulb vs 23w CFL that is on 5 hours/day is $18.48 for the regular bulb, $5.84 for the CFL.

INSTALL A LIGHT TUBE (ALSO CALLED A TUBULAR SKYLIGHT)---This is a great way to bring natural outdoor light into a dark area, and reduces the need for electric lights in dark areas. A light tube costs between $200-$500 so it could take years for you to recoup the investment through saved electricity, but there are aesthetic and health benefits to natural light. It is cheaper than a skylight, is easier to install and contributes less to winter heat loss and summer heat gain. Installation requires access to the roof or attic space directly above it. A light tube looks like a doomed ceiling-light fixture, but instead of being powered by electricity, it's lit by natural sunlight from a collector dome on the roof.

~Barb

Energy Myth

2010-01-25T22:58:00Z

Have you ever been told by someone that "the power surge from turning on an electric device uses more energy that leaving the device on"? This is an ENERGY MYTH...do not listen!

The initial power surge from turning on an appliance, light, computer, or any item that uses electricity consumes the same energy as just a few seconds of actual operation. So, when you are not using it, turn it off.

~Barb

Top 25 Electricity Users in American Homes

2010-01-25T22:43:00Z

In a drecreasing amount of kilowatt-hours per year this is an average for all users in each category. Your actual usage may be higher or lower than what is represented here. This list does not include usage for electric heating, central air-conditioning, or water heating.

Pool/tub/spa heater
Pool filter/pump
Refrigerator
Freezer
Clothes dryer
Waterbed heater
Room air conditioner
Lighting (indoor and outdoor)
"Other"
Large, heated aquarium
Electric range top
Dishwasher
Secondary indoor heating equipment
Furnace fan
Entertainment (TV, cable, VCR/DVD,stero)
Electric oven
Well water pump
Dehumidifier
Desktop personal computer
Printer with fax/copier
Microwave oven
Automobile engine battery heater
Ceiling fan
Satellite dish
Clothes washer

~Barb

Cutting Your Energy Bills

2010-01-25T21:50:00Z

People are always looking for ways to save money. What I plan to do in a series of blog posts is not to tell you not to buy that expensive cup of coffee every morning, but to show you some ways to save energy in your home. I will be focusing in on ideas that are low cost or are high benefit...and, hopefully some of the ideas will be both. Each house and each family is different, so an idea that works for your next door neighbor may not work for you. No matter what your lifestyle is, you can benefit by paying more attention, smart shopping, planning ahead, or making yourself more aware of your day-to-day use of the energy-consuming items in your home.

Most analysts agree that energy costs will continue to rise steadily as worldwide demand for energy increases and the supplies of fossil fuels tighten. You can benefit from both conserving energy and using energy efficiently. Conservation implies you are willing to get by with using a little less energy. Efficiency means enjoying the same level of comfort and convenience while using less energy. Conservation usually costs you nothing; efficiency typically involves costing you something. There is a place in your life for both approaches to saving energy, but my blog posts will focus in more with using energy more efficiently.

The breakdown of $100 of energy expenses for a family living in a mixed climate environment, which I feel Ozaukee County is, is---$33 for heating, $12 for air-conditioning, $14 for water heating, $8 for refrigerators, and $33 for other appliances and lights.

When we speak of energy there is good news and there is bad news. The bad news is that your energy consumption is probably high; the good news is that there is potential for you to have some real savings. The more you've been using, the more you can save.

~Barb

The Emotional Part of Foreclosure or Short Sale

2009-11-23T21:32:00Z

Losing your house not only is a financial blow, it is also a psychological blow. You can't avoid the emotional realities you and your family are going through, but facing them head on can help you approach the situation in as calm and rational manner as possible.

The first emotion felt by most homeowners about to lose their homes is FEAR---fears of ending up on the streets. You are not alone if this is what you are feeling. Let me reassure you it doesn't happen like that---you are not in your house one day and out the next day. It is an orderly process that moves from step to step over the days and months after you are notified.

When faced with the loss of your house you are likely to go through a grieving process as you do with the loss of a loved one, the loss of a marriage, or the loss of a career. Years ago when I was going through a period where I feared losing my parents---my parents are now 92 and 94 and living in their own home---I started reading the works of Elizabeth Kubler-Ross. If you haven't heard of her she is a psychiatrist that worked with many terminally ill patients. From her experiences she wrote the book On Death and Dying. She found that people given a terminal prognosis commonly move through 5 stages. To a lesser extent, people facing any major loss pass through similiar stages:

Denial (This isn't happening to me!)
Anger (Why is this happening to me?)
Bargaining (I promise I will be a better person if ...)
Depression (I don't care anymore.)
Acceptance (I'm ready for whatever comes.)

~Barb

What Information Do I Need to Gather Before Talking to a Housing Counselor?

2009-11-20T00:03:00Z

There is certain documentation you should have in hand when talking with a nonprofit housing counselor. Gather together these pieces of information and take them with you to your meeting.

Current balance on your mortgage loan(s)
Recent pay stubs
Benefit statements from Social Security, disability, unemployment, retirement, or public assistance
Your last tax return
If you're self-employed, an up-to-date profit and loss statement
Monthly household expenses

If you are not sure where to locate a nonprofit housing counselor agency, or do not know if the agency that contacted you is safe, go to my last post giving you the email addresses and phone numbers of accredited contacts.

~Barb

Finding a Nonprofit Housing Counseling Agency

2009-11-19T23:15:00Z

Make sure if you are looking to talk to a nonprofit counseling agency you are talking to a legitimate agency. A large industry has developed to help out people facing foreclosure---much of which is a scam. These companies will scour public records and call homeowners who have received foreclosure notices. The callers will tell you they are have access to financial resources that are not available to the nonprofit housing counseling agencies. These companies are not concerned about keeping you in your house, they want to make money. If you have equity in your house, they will go after that; if you have cash, that will be their target.

It is not easy to tell if a agency is nonprofit or has the knowledge to help you with a foreclosure workout. Here are some places where you can get safe and reliable information:

The federal Department of Housing and Urban Development (HUD) has a list of approved counselors. You can find a HUD certified agency at www.hud.gov/foreclosure/index.cfm, or by calling 800-69-4287.
The Homeownership Preservation Foundation website, www.995hope.org, offers free online counseling. You can talk to a counselor by calling 888-995-HOPE.
The Homeownership Crisis Resource Center, www.housinghelpnow.org, will link you up with a foreclosure prexention specialist who may or may not be HUD certified.
The National Foundation for Credit Counseling will connect you with a nonprofit counselor (typically HUD certified). The toll free phone number is 866-557-2227.

My next post will deal with the information you should gather before contacting a nonprofit housing counseling agency.

~Barb

Giving Up the House -- What Are Your Options

2009-11-19T22:28:00Z

Once it appears that foreclosure is inevitable, many people pack up their belongings and their families and immediately look for a new place to live. These reactions to foreclosure certainly are understandable, but it is important to put fear and negativity aside. By doing this you are able to assess your options to come up with the best choice for your circumstances.

The options you have are:

Let foreclosure work for you: Stay in the house as long as possible without making payments; thus, saving money for your future move.
Short sale: Put the house up for sale and persuade the lender to accept an offer less than what you owe on the house; therefore, you are off the mortage.
Deed in lieu of foreclosure: Persuade the lender to let you sign over the deed to them in exhange for cancelling the foreclosure proceedings.
Walk away: Move out of the house whenever you want and let the foreclose proceed.
File for Chapter 7 or Chapter 13 bankruptcy: Eliminate any deficencies or taxes that you owe as a result of the foreclosure or other remendies.

It is very important for you to talk to an expert to see how your choice will affect your credit. It's not possible to really know what effect any of the above actions will have on your credit. The effects of the actions seem to change daily in this economic environment. When you are ready to decide which option to choose, talk to a nonprofit housing counselor about how your action could affect your credit.

See my next post on finding a nonprofit housing counseling agency

~Barb

Deed in Lieu of Foreclosure -- What Is It?

2009-11-18T23:18:00Z

If you have not been making your mortgage payments your lender may suggest a deed in lieu of foreclosure; or you can propose this option to your lender. It involves you simply handing over ownership of your house to the lender and getting your loan cancelled in exchange. If your lender agrees, it will accept the deed to your property and, in turn, promise not to initiate foreclosure proceedings or to drop them if they've already been started. You do not have to sell the house; the lender will do that.

It has gotten harder to get lenders to accept a deed in lieu of foreclosure since the bank wants cash, not real estate. Before the lender will accept a deed in lieu of foreclosure, it will probably require you to put your home on the market for a period of time (three months has been a typical length of time). Banks would rather have you sell the house than having to sell it themselves. Banks do not have real estate sales departments so they must contract with real estate companies to sell the properties, often at a steep discount.

A deed in lieu of foreclosure can not be used if you have multiple mortgages or if you have liens on the property due to delinquent taxes, work on your home, or money judgements. You must be able to deed clear title to the entire property. You can not do two deeds in lieu of foreclosure and split the property between the first and second mortgage lenders, or other lienholders.

~Barb

Real Estate Agents Can Be Indispensable if Facing Foreclosure or Short Sale

2009-11-18T22:47:00Z

The major difficulty in doing a short sale is that you must get a solid offer from a potential buyer before your lender will tell you whether or not it will accept the terms. A short sale is not foreclosure; a short sale is the sale of a house threatened with foreclosure. It's a sale made with the lender's agreement so that the homeowners can get out from under their mortgage by selling the house even if the sale of the house will not pay off the entire remaining loan amount.

A local real estate agent who is familiar with the practices of particular lenders will have a good idea of what kind of terms the lenders will accept. The agent will also negotiate with your lender for the final terms of the offer to purchase. Getting a short sale to closing can require experience with the lender (or lenders) and experience in negotiating real estate deals.

Since real estate agents are finding that more of the transactions they are involved with are short sales, they are taking advantage of additional training in dealing with short sales and foreclosures. The training of the agent is important to you whether you are the buyer or seller.

~Barb

Limited-time-only Government Home Energy Tax Credit

2009-11-11T19:55:00Z

Winter is around the corner and so is the high cost of heating your house. You might want to think about making home improvements which would help cut your energy costs. Now is a good time to put some of those ideas into action because of the recent extension of the home energy tax credit. The government is allowing homeowners to claim 30% of the cost of qualified energy-efficient products up to $1500 through Dec. 31, 2010.

To earn the tax credit you must save the receipts for qualified purchases placed into service between Jan. 1, 2009 and Dec. 31, 2010. Get the manufacturer's certification of eligibility (usually on the manufacturer's website) and keep a copy with your tax records. At tax time claim the deduction on your federal tax return.

There are 2 categories of qualifying home improvements. The first one consists of the building envelope products, such as replacement window, roof products, and insulation; the second category is heating and cooling equipment (for which installation costs also count toward the tax credit),such as water heaters, central air-conditioning and boilers.

Short Sale Heartache

2008-09-19T00:43:00Z

The heartache was not my sellers; it was mine.

A short sale can take place in two different ways. The first way is when the seller owes more to the bank than the house can be sold for, and the seller has to bring money to the closing table. The second form of short sale is when the seller can no longer make the house payments and the house is sold for less than the amount owed to the bank, but the seller has no additional funds to bring to the closing table. Then the listing agent must negotiate with the lender to have the lender accept a payoff of less than is owed on the property.

One of my short sale properties closed recently. The sellers were an average American family with children and a dog, but no picket fence. I had sold them this house a few years ago. They used a conventional loan and had a down payment; they didn't have one of the "designer" loans. Due to unexpected circumstances they were unable to continue with the house payments and had to sell the house. With the change in the market they were not able to sell the house for what was owed. I worked with the lender to get a short sale rather than have the house go into foreclosure.

I met with Mr. Seller the day before closing to have him presign the paperwork for the sale of the house. When we met we said all the normal greetings that people say upon meeting. The next question he asked me was if I was getting paid my commission for the sale of his house. As agents we know we are not guaranteed being paid in short sales, but we know we have the training and marketing ability to help people through these times. My seller had just lost his house and the equity he had in it, but he was concerned about me and that I got paid. In a time when so many people live a "me" centered life and always want to know "what is in it for me" his few words to me were powerful. His life was crashing in around him; yet, he was concerned about me. My commission seemed so insignificant in comparison to what was happening in his life. My heartache came from what the family was losing; but my tears came from what someone had just shown me about true caring about someone else. It is an experience I never want to forget and hope I am a better person because of it.

Barb

Dispose of Pressure-Treated Wood Correctly

2008-09-11T18:46:00Z

I just read an article in one of my real estate newsletters dealing with pressure-treated wood. It was a warning. With fall approaching many of us living in Wisconsin like to enjoy our natural fireplaces or an outdoor bonfire. Also, we may have some pressure-treated wood left over from summer building projects. The last two sentences do not mix well. Burning of pressure-treated wood releases potentially harmful chemicals that mix with the smoke from the fire and can be inhaled. If you have pressure-treated wood scraps to dispose of, DO NO BURN THEM; find another way to take care of these scraps.

Barb.