Uncategorized

Published with permission from RISMedia.

When a homeowner is struggling to pay a mortgage, a loan modification and a short sale are two popular avenues that can help the borrower avoid foreclosure. If a lender rejects those options, another possible solution is a deed in lieu of foreclosure, which transfers the title for a house from the owner to the mortgage lender in exchange for releasing the borrower from responsibility for the debt. A house does not need to be in foreclosure for a deed in lieu of foreclosure to be an option.

Is a Deed in Lieu of Foreclosure the Right Solution for You and Your Lender?
A deed in lieu of foreclosure allows both the borrower and the lender to avoid the expensive and time-consuming foreclosure process. It also allows the borrower to avoid the potential embarrassment of being evicted.

If you have home equity, selling your house would be a better solution than pursuing a deed in lieu of foreclosure. If you dont have any equity, a deed in lieu of foreclosure might be your best option. It would not be a good choice, however, if you have a second mortgage since the second lender could seek money from you for a deficiency. If you agree to a deed in lieu of foreclosure, make sure the document clearly releases you from liability to repay your mortgage.

Before you agree to a deed in lieu of foreclosure, make sure you understand the implications. It would appear on your credit report and could be just as damaging to your ability to obtain future credit as a foreclosure would be. You would not be able to purchase another house for several years. In addition, you might owe taxes on the canceled mortgage debt. You should discuss that with your accountant before making a decision.

Lenders are often unwilling to accept a deed in lieu of foreclosure if the homeowner is current on the mortgage. In those circumstances, a lender could make more money by going through the foreclosure process. In addition, any liens that were filed against the property by other creditors would become the responsibility of the lender, unless the agreement stipulated that the lender was not responsible for the liens. Some loan guidelines do not allow a deed in lieu of foreclosure.

Think Carefully Before Choosing a Deed in Lieu of Foreclosure
If youre unable to pay your mortgage, a deed in lieu of foreclosure could allow you to walk away, but it should only be used as a last resort if other solutions are unavailable and if youve accepted that youll lose your home one way or another. Before you consider this option, explore other possible solutions.

Published with permission from RISMedia.

Keep your breakable items safe and secure with these smart packing tips.

Choose the Right Packing Materials

Use dish barrels, a stronger, thicker cardboard created with your kitchen in mind. Utilize plenty of packing paper for the safest travel of delicate glassware.

Create a Soft Bed of Paper

Create a six inch cushion at the bottom of each box. Don’t be shy with the packing paper. Crumple up the paper to provide a shock-absorbing space.

Use Smart Wrapping Methods

For glasses, the roll and tuck method is best. For plates”again, don’t be shy with the packing paper”lay out two to three layers of packing paper and wrap bottom to top. Wrap each piece in multiple layers for added protection.

Pack by Weight

Pack each box with the heaviest and sturdiest items on the bottom. Add extra packing paper in between each layer or item for maximum support.

Published with permission from RISMedia.

Mortgage lenders used to require a minimum of 20 percent down, but many financial institutions now accept much lower down payments. Nevertheless, homebuyers often still think they should make the largest down payment possible. That could be a mistake.

Why Many Homebuyers Make a Large Down Payment
If a borrower puts down less than 20 percent, a lender requires the borrower to pay for private mortgage insurance (PMI) until reaching 20 percent equity. PMI is designed to protect a lender if a borrower defaults on a loan, but it can add hundreds of dollars per month to the cost of homeownership. Buyers who put down at least 20 percent usually do so to avoid paying for PMI.

Why You Should Consider Putting Down Less
Many people, particularly first-time buyers, focus on the cost of a house itself but dont plan for closing costs, which can total thousands of dollars. Buyers also tend to underestimate the costs of homeownership. Maintenance, repairs and property taxes can add up quickly. New owners often decide to purchase appliances and furniture or to make renovations. Making a low down payment and setting aside money for necessities and desirable upgrades can give you some breathing room.

When you make a down payment, that money gets tied up in the house in the form of equity. You could access those funds through a home equity loan or a home equity line of credit, but both involve an application and approval process that could take weeks or months. If you make a smaller down payment and have an emergency fund, you wont be stuck if you lose your job or face a surprise medical bill or urgent repair.

Avoiding PMI could lower your monthly payments, but making a large down payment could prevent you from using that money for other things. For example, you could make a smaller down payment and contribute more to a retirement account or college savings plan for your kids. If you havent saved as much as youd like and your retirement age is approaching or your children are in or nearing high school, you might be better off making a smaller down payment and investing in other goals so the money can have as much time as possible to grow.

Choose the Right Down Payment Amount for Your Circumstances
When shopping for a home, think carefully about how much money to put down. A large down payment could help you avoid PMI, but it might leave you strapped for cash in an emergency or unable to invest as much as youd like for retirement and college. Consider your entire financial situation, and talk to your real estate agent and financial advisor.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

The positive or negative response we get upon entering a room is nearly instantaneous. We dont need to carefully examine each corner or turn over every pillow to decide if a room makes us feel good or not. But what gives us such a strong first impression? Many of the ways we experience a room have to do with a psychological response that happens behind the scenes. This is why most homebuyers end up choosing a house based on theemotional responsethey get within moments of entering a home”not the detailed list of pros and cons theyve made.

There are various factors that go into how we experience a room, and in fact, many of the principles of feng shui are based on the intangible influences of design. Here are three different ways we shape our impression of a room:

Senses
How we perceive a room with our senses tells us what we know to be true about the room and provides a way of describing it. Through our sense of sight we experience colors, each of which will elicit a different impression. Our eyes also pick up on important details such as patterns, scale and lighting. Our sense of smell is the most tied to memory, so a pleasant one, like scented candles, will connect us with memories that inspire positive emotions, while a foul smell, like garbage, will really turn us off. Textures used to decorate a room should also be taken into consideration. Materials such as silk, wood, linen or wool give satisfaction to our sense of touch.

Emotions
Our personal feelings significantly impact how we experience a room and will usually take precedence over our ability to rationalize. With that in mind, there are many decorating details that can trigger subtle (or not so subtle) emotional responses.

Art is one example. If the subject matter features a depressing scene or sad characters, it’ll definitely bring down the mood of a room. If you had some cut flowers on your coffee table, but they’ve wilted and dried out, thats another detail that’ll put a damper on someone’s emotional response. Its important to think about the kind of symbolism placed in a room and how it might influence our emotions.

Spatial Harmony
If furniture placement and scale is out of sync or doesn’t make sense, it can negatively affect how we experience a room, especially a small one. Chairs that are placed too far away from each other make conversation difficult, while being too close together will make a room feel cramped. It’s important to consider how the furniture, decorations and room are meant to interact with each other.

As you can see, theres a lot more to interior decorating than just picking the right shelf ornament. If you keep these principles in mind, guests won’t be able to quite describe why they feel so good in your home.

Source: Mikkie Mills/RISMedias Housecall

Published with permission from RISMedia.