Archives for March 2011

News Homes Will Be Smaller And Greener

March 10, 2011 by admin

A recent study conducted by the National Association of Home Builders (NAHB) shows that while consumer hesitation on home buying is waning, the recent housing downturn has changed what Americans are looking for in their next home.

The survey research on consumer preferences, which is presented annually at the NAHB International Builders’ Show, suggests that the severity of the recession has left an indelible mark on prospective home buyers, who have shifted their perspective on the housing they want and need.

Builders who were surveyed expect homes to average 2,152 square feet in 2015, 10% smaller than the average size of single-family homes started in the first three quarters of 2010.

To save on square footage, the living room is high on the endangered list—52% of builders expect it to be merged with other spaces in the home by 2015 and 30% said it will vanish entirely.

“As an overall share of total floor space, 54% of builders said the family room is likely to increase,” said Rose Quint, NAHB’s assistant vice president for survey research. “That makes it the only area of the home likely to get bigger.”

In addition, the relative size of the entry foyer and dining room are likely to be diminished by 2015. However, opinions were fairly evenly divided on the fate of the kitchen, master bedroom and bath and mudroom, said Quint.

The average new home of 2015 is likely to feature a great room comprised of the kitchen, foyer and living room; a walk-in closet in the master bedroom; a laundry room; ceiling fans; a master bedroom on the first floor in homes with two stories; and a two-car garage.

In addition to floor plan changes, 68% of builders surveyed say that homes in 2015 will also include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house.

For more information, visit www.nahb.org.

Contributor: RISMedia

Real Estate ABC’S – Deed In Lieu Of Foreclosure

March 8, 2011 by admin

If a homeowner with a mortgage is no longer able to make payments and unable to get refinancing to lower monthly payments, there are several options: loan modification, short sale, foreclosure and deed in lieu of foreclosure.

With a deed in lieu of foreclosure, the homeowner requests and receives permission from the lender to sign the deed of the home over to the lender. The lender accepts the deed, absolves the debt and waives the right to seek additional money from the homeowner if the sale of the home doesn’t cover the loan.

The lender marks the borrower’s note as “paid” and provides the borrower with two documents – one which states that the debt is canceled and the other waives the lender’s right to a deficiency judgment (the lender’s right to ask for the amount of the debt they are unable to recover from the sale of the home).

In most cases, a deed in lieu of foreclosure is better than foreclosure for the borrower and the lender. The borrower gets out of debt that he cannot afford to pay and avoids foreclosure. Even the borrower’s neighborhood benefits as news of foreclosures, which are public record, lower surrounding home values. For the lender, a deed in lieu of foreclosure avoids the hefty costs of foreclosure proceedings .

While a deed in lieu of foreclosure can help relieve an immediate threat of default or foreclosure, a homeowner considering it should be aware of the following points:

You must approach the lender and the lender must agree. Even if it is a good option, a lender cannot approach a homeowner about giving up a home. Both parties must enter into the transaction voluntarily and in good faith.

Your equity is lost. Lenders are most likely to accept a deed in lieu of foreclosure when there is positive equity in the home. In a foreclosure, you remain the owner of your equity if there is value left over after the loan is paid. In a deed in lieu of foreclosure, it all goes to the lender.

There could be tax consequences. If the sale of the home does not cover the loan balance, you are being forgiven that amount. If the home is not your primary residence or the forgiven balance is above set amounts, you might face taxes on it.

Your credit history is affected. A short sale does not affect your credit standing. It is simply a sale of the home. And while a deed in lieu of foreclosure is not as big a black mark on your credit report as a foreclosure, it is still reported and still a part of your credit score calculations.When you go for deed in lieu of foreclosure, it affects your credit score. Your score could drop by as much as 250 points and will stay on your credit report for 7 years. After 7 years, you can have the deed in lieu removed from your credit report and start to rebuild your credit. At the end of the 7th year, you can request the bureaus to remove it from the report.

Wallingford History – A Tale Of Two Brothers

March 8, 2011 by admin

The Vernon family of Nether Providence were prominent during the Revolution. Nathaniel Vernon had two sons, Nathaniel Jr. and Frederick, and resided at a home located at the end of present day Hickory Lane. At the outbreak of the war he was sheriff of Chester County and was an outspoken advocate of the cause of the crown, and subsequently became so offensive to the colonial authorities that he was declared a traitor, as was his son, Nathaniel Jr. The father fled to the protection of the British army, while Nathaniel, joined the Brithsh army serving with the Tory Light Horse. Frederick, sided with the Continentals, joined the army, and rose to the rank of Major.

During the British occupation of Philadelphia, Frederick obtained permission to visit his wife and family at his home in Nether Providence located at 204 West Brookhaven Road. His brother, Nathaniel learned of his visit and, and marched a platoon of Tory Light Horse from Philadelphia to Nether Providence, intent on capturing Major Vernon. The troops surrounded the house. Nathaniel entered the home and was about to climb the stairs, when Frederick, who was aroused by the noise, halted him from the head of the stairs, where he stood armed with a pistol. Nathaniel made it known that he had come to take him prisoner and that he must surrender, since troops were surrounding the house. Nathaniel tried to convince his brother of the inevitable British victory, and offered him a commission in the British army. He had come for his welfare he assured his brother. Frederick replied that he would never surrender, that the British could not take him, and that if his brother or any other person attempted to ascend the stairs he would shoot; only as a dead man could they capture him. Nathaniel finding his brother so determined, withdrew his troops, and Frederick remained true to the Patriot cause. At the conclusion of the war he was one of the founders of the Society of the Cincinnati, and died in Nether Providence at an advanced age. The fate of his loyalist brother Nathinel is unknown.

Contributor: Merv Harris

Chairman – Nether Providence Historical Society

Mortgage Corner – Do’s And Don’ts When Applying For A Mortgage

March 7, 2011 by admin

As you are considering the purchase of a new home you should avoid doing anything that will have an adverse effect on your loan, from the time that you make an application for a mortgage through closing. During this time period it is of utmost importance to keep a stable financial position. How many people really know what financial pitfalls to avoid, missteps that could cost you thousands of dollars, or worse, jeopardize your ability to obtain financing at all.

Here are some suggestions for keeping financially fit:

THE DON’TS

Don’t Apply For New Credit Of Any Kind – We all receive a constant barrage of offers for new lines of credit – do not be tempted. If you open a new credit line the company will pull your credit report and this may have an adverse effect on your FICO credit score. This also applies to establishing credit for furniture and appliances for your new home – just wait.

Don’t Pay Off Collections Or Charge-Offs – Do not pay off collections unless specifically directed to by your lender. In general paying off old collections will cause a drop in your credit score.

Don’t Max Out Or Over Charge Existing Credit Cards – Running up your credit cards is the quickest way to bring your credit score down, and it can drop dramatically overnight. Try to keep your credit cards below 30% of the available limits.

Don’t Consolidate Debt To One Or Two Cards– If you close a credit card account it can effect your ratio of debt to available credit – which has an impact of 30% on your credit score. If you want to ditch a card or two, wait until after you close on your home.

Don’t Raise Red Flags To The Underwriter – Don not co-sign with another person on a loan, or change your personal information – the less activity that occurs the better.

Don’t Make Adjustments Or Transfers In Your Portfolio – Do not change investments, transfers positions in your investment portfolio, open or close accounts without the approval of your lender.

Don’t Make Large Unexplainable Deposits in Bank Accounts – Deposits that exceed past history will be questioned by an underwriter, unless the deposit involves a documented gift.

Don’t Make Changes With Your Employer Or Income – Employment stability is a large factor in the underwriting process. Leaving or changing jobs, or even positions within the same company, can endanger your approval. Notify your lender of any changes to your job, or income.

THE DO’S

Do Stay Current on Existing Accounts– Late payments on your existing mortgage, car payment, etc. can cost you dearly. One 30 day late payment can lower your credit score by 30 to 75 points.

Do Continue To Use Credit In Your Normal Manner– If you divert from your normal spending patterns it can raise red flags with your credit score, and can cause your score to drop. If you have made recurring payments for years to Comcast for your cable and Internet service, there is no reason to change it now, wait until after your closing.

Do Be In Contact With Your Loan Officer– Discuss any questions, or possible changes in your financial behavior with your loan officer. A phone call can save you a lot of unneeded angst.

If you have any questions concerning the mortgage process, give me a call.

Steve Madonna

Weichert Financial Services

(610)- 566-2045

NMLS # 140438

Wallingford Real Estate Review – February 2011

March 1, 2011 by admin

: Winter Night – Beatty Road Trolley Stop

Wallingford Real Estate

Reviewing Wallingford Real Estate activity for the second month of 2011.

Address Bed Bath Price Settled

211 Grandview Road	3	1.1	$257,800	02/16/11
110 Canterbury Drive	3	1.1	$2500,000	02/22/11
700 Avondale Road – 7C	2	2.0	$152,000	02/24/11
201 Media Parkway	5	4.0	$235,000	02/28/11

These listings were on the market for an average of 110 days. The quickest sale was achieved in 48 days, the longest time to contract was 337 days. Two homes had a seller assist averaging $7,617.

February 2011 Activity vs February 2010

	*UNITS*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	6	$278,025	272	94.47%	98.46%
2011	4	$223,700	160	90.52%	92.81%
	-34.0%	-20.0%	-42.0%	-3.95%	-5.65%

Comparing settled homes year to date versus last year for the first two months of the year – in 2010 there were 18 homes settled, in 2011 there have been 10 homes settled – a decrease of 44.4%

Are you curious about what Wallingford townhomes or Wallingford homes sold last month or last year?

Swarthmore Real Estate

A often asked question is what happening in Swarthmore real estate?

As part of this and future monthly updates I will include information regarding Swarthmore real estate activity.

These Swarthmore homes represent homes that have settled in the months of January and February 2011.

Address Bed Bath Price Settled

801 Yale Avenue – #1208	3	4.0	$316,600	01/07/11
14 Crest Lane	3	2.1	$339,000	01/11/11
626 Strath Haven Avenue	4	3.0	$325,000	01/14/11
317 Maple Avenue	5	2.1	$367,500	01/14/11
98 Dartmouth Avenue	4	2.1	$395,000	01/28/11
308 Vassar Avenue	5	2.1	$295,000	02/18/11

These listings were on the market for an average of 126 days. The quickest sale was achieved in 11 days, the longest time to contract was 364 days. Two homes had a seller assist averaging $10,041.

Swarthmore home sales year to date compared to last year for the same time period are up by 1 home. In 2010, 5 homes had settled through the end of February, this year 6 homes have settled through the end of February.

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