Laurie Mangen’s Blog

According to the real estate website Zillow.com, at least one in five Americans are upside-down on their mortgages (owing more than the home is worth) and new foreclosure notices reach the troubling milestone of 10,000 per day.  The near future does not look much better with rising unemployment it is estimated that some 9 million homes will have been foreclosed on by 2012.

 What should you do if you’re facing foreclosure?  According to H.U.D. be sure to take the following steps.

1-800-569-4287 or TDD 1-800-877-8339 for the

There is a lot of chatter, these days, about “going green” in homebuilding and remodeling, but what does “green” really mean? House hunters and homeowners wanting to make a positive environmental impact are finding that green can mean virtually anything a marketer says it does. As with every other growing consumer trend, a variety of marketers have discovered the sales boost a green claim can give, and it’s sometimes difficult to distinguish facts from hype.Common features of green built projects Despite the absence of a universal standard, green built projects do tend to have a number of features in common. If you want your own project to create a positive impact — on the environment, on your comfort and health, and even on your utility bills — you now have more choices than ever in eco-friendly designs, methods, and materials. Generally speaking, if your project can incorporate one or more of the following features, you’re on the right track. 

• Reuse an existing structure rather than build a new one.
• Deconstruct rather than demolish, if all or part of an existing structure must be replaced.
• Reuse materials from the old structure where possible.
• Consider using salvaged materials from other sources.
• Use materials made from recycled content where possible.
• Recycle as much project waste as possible.
• Use building materials efficiently.
• Use energy efficiently:
  • Use low-e (low emissivity) windows.
  • Use a high-efficiency heating/cooling system.
  • Design to recycle waste heat.
  • Design-in lighting fixtures that utilize fluorescent or halogen bulbs, rather than incandescent bulbs.
• Choose materials and products with low or no toxic emissions (e.g., wall board, cabinets, carpets, paint and other finishes).
• Choose sustainably harvested natural products (e.g., wood products that are certified sustainably harvested, bamboo flooring, carpets made of natural fibers).
• Choose materials, where possible, that come from local sources (e.g., local quarries for stone, or anything that didn’t have to get shipped long distances).
• Use water efficiently:
  • Use water-saving appliances, such as low-flow or dual flush toilets and a tank-less water heater.
  • Design to recycle wastewater (greywater systems).
  • Design to capture and store rainwater (sometimes called rainwater harvesting).

How does $8000 home buyer tax credit work?

In order to understand the details of the housing stimulus bill or $8000 home buyer tax credit (also called as $8000 housing tax credit) as a first time home buyer you need to understand the following six important points.

1.      What does first time home buyer exactly mean? -”First time home buyer”  is a home buyer who has not owned a principal residence for the last three years. For married tax payers, both you and your spouse must be ‘first time home buyers’ in order to qualify for the housing tax credit. For unmarried joint purchases, either of the qualifying partner may be a ‘first time homebuyer’. In this case the $8000 housing tax credit can be allocated to any of the partners.

2.      Dates of home purchase - In order to qualify for the home buyer tax credit, the first time home buyer must purchase the house between January 1 2009 and December 1 2009, both dates inclusive.

3.      How much tax credit will homebuyers get? - Although this tax credit is referred to as $8000 housing tax credit, remember that the total amount of tax credit a home buyer gets is equal to 10% of the purchase price of the new house up-to maximum of $8000. Thus in order to get a full tax credit of $8000 your purchased property must be above $80,000 in value.

4.      Income Limits for $8000 home buyer tax credit: First time home buyers with modified gross annual income of $75,000 get full benefit of this housing tax credit. The tax credit is gradually reduced for those with income between $75,000 to $95,000 and finally a home buyer gets no tax credit if his/her modified gross annual income is more than $95,000. For married taxpayers, the home buyer tax credit is gradually reduced to zero for modified gross annual income between $150,000 to $170,000.

5.      This is a Refundable Tax Credit - Remember that this is a tax credit and not a tax deduction. That is qualified first time home buyers deduct $8000 from their total tax owed to the IRS and NOT the total taxable income. Moreover a refundable tax credit means that in case the total taxes you owe to the IRS are less than $8000, you can actually get a refund for the balance amount!

6.      This $8000 home buyer tax credit, unlike $7500 tax credit does not need to be repaid to the IRS - the earlier $7500 housing tax credit was essentially an interest free loan which the home buyers needed to repay in 15 years. However, although this $8000 home buyer tax credit may look only $500 more than the previous housing tax credit, it is all yours!

The upsides of reverse mortgages

The downsides of reverse mortgages

With houses, condos and apartment buildings selling for a fraction of what they did a few years back, now just might be the time to invest. But how can a potential investor take advantage of the current real estate market without plunking down a lot of cash?

While buyers won’t find a bank to finance 100% on any property, purchases can still be made with relatively little cash down. Here are the 4 main ways to accomplish it.

Let the Seller Finance the Deal

There are sellers that just need to get out of their houses.  You’re seeing a lot of private financing going on like lease purchasing, owner financing or private mortgages.  It can be a good way for some investors who wants to purchase property but just haven’t saved up the 20% for a down payment.

Buyers who choose non-traditional mortgages may be well served to seek the representation of an independent third party or attorney to remove any question of legalities. If buyers take those precautions there’s no reason that creative financing can’t be as good as obtaining a mortgage through a bank—sometimes even under better terms.

Put 20% Down

As long as you have 20% down and good credit, and you can document your income you can still get a loan

Suppose a home sold for $200,000 four years ago but now is available for $100,000. Four years ago a buyer could have financed 90% of that home and put $20,000 down, but today’s buyer can put down 20% of today’s $100,000 asking price for the same $20,000 and get a lower interest rate.

Buy a Rented Property

Another option for buyers is to purchase a home or condo that is already rented. A rented home shows lenders the property can generate income and the owner can make their payment. As a result, some banks may accept a smaller down payment.

However, when banks use rental income to qualify a buyer, they typically only count 75% of the monthly rent. They do this to account for maintenance and periodic vacancies. The growing foreclosure market has placed so many homes on the market for sale that in many areas it’s easy to have positive cash flow on an investment property.

Every buyer should be able to take one of these three options to capitalize on investment properties in a down market. With so many options and an abundance of inventory on the market it just might be the time to invest

Here are some point for anyone looking to start flipping homes.  With the recently low prices and foreclosures this is even more popular than in years past.

1. Stick with familiar territory

Areas undergoing urban renewal present good investment opportunities

2. Check your capital

It seems elementary, but in the recent past many flippers found themselves in trouble because they had not correctly calculated the amount of money it takes to finish a flip and market it.

Carrying costs (house payments you must make until you sell the property) can subtract thousands from the bottom line. And even though you are chipping away at the debt incurred when you purchased the property, the interest you’re paying at the top of the flip probably won’t be earned back in the sale. Those payments come right out of your potential profit.

3. Cut your costs creatively

Flipping in an economy that’s not terribly user-friendly takes guts and creativity. Home flippers are increasing their chances for success by breaking as many rules as possible, including making aggressive “low-ball offers” on potential flips.

You can also cut the middleman by obtaining his real estate license, letting you pocket the commission he would normally pay to sell flips.

But buying and selling aren’t the only places where a flipper needs to become adventurous to succeed. It also helps to get creative with materials.  Think good secondhand appliances or new ones sold as scratch and dent models, refinishing old cabinets by painting them and changing out the hardware, purchasing leftovers from rolls of carpet, close-outs on tile and fixtures, clearance items and even recycled stuff. By cutting renovation costs, you can keep your asking price low and make your property attractive to more potential buyers.

4. Consider it a long-term investment

Real estate consultant and mortgage broker Todd Huettner of Huettner Capital says changing markets have forced his clients to alter their business practices. While a quick flip is possible, investors should be prepared to hold the property for several years as a rental.

Renting protects investors from losing properties they can’t sell. Remember, positive return is always better than a negative one.

The journey from Point A to Point B may take more time, but in the long run, there’s still profit to be made in flipping homes.