| Hundreds of thousands if not millions of | | | | both your accountant and mortgage |
| current homeowners are having to face this | | | | professional together to analyze your |
| unfortunate fact in the current depressed | | | | options. Your goal is to have just enough |
| housing market. It is mostly a result of | | | | documentable income to qualify for a |
| either a "no money down" home purchase or | | | | conforming mortgage, which will have a lower |
| tapping that 'ever-growing' equity with some | | | | interest rate throughout the life of the |
| form of 100% home financing. Worse yet are | | | | loan.c. Another thing you could do is pay off |
| homeowners where there is an ominous ARM | | | | some debt or sell a car to get rid of a car |
| adjustment in the next year or two. The | | | | payment. If you have to replace it, buy a |
| homeowner had planned to refi or sell before | | | | much cheaper car or let a non-borrowing |
| mortgage interest rates adjust higher but | | | | spouse finance it so it doesn't hit your DTI. |
| can't in the current market. | | | | |
| | | | 2. Home related actions:a. Get a new more |
| For homeowners that have a fixed rate, it's | | | | current appraisal. The appraiser that did |
| just a matter of holding on until home values | | | | your previous appraisal may give you a price |
| go up. In many, if not most homes this has | | | | break. Pay close attention to negative |
| historically been the case. If you stay in | | | | adjustments between your home and the |
| one house long enough the value will | | | | comparables. They should give you a starting |
| eventually go back up. Unfortunately, in very | | | | point on what improvements you should make. |
| localized areas where the economy has gone | | | | Yes you may have to put more money in your |
| down the toilet homeowners are getting a | | | | home to significantly increase the value but |
| double whammy. | | | | you will do it on the absolute cheap (cheap |
| | | | price not cheap quality). Don't hesitate to |
| So what can a homeowner do? There actually | | | | pick up the phone and ask your appraiser what |
| are a number of things that can be done. We | | | | should be done. A good example would be to |
| will cover them in two parts. Part 1 is | | | | finish a basement or eliminate some condition |
| related to related to financing and Part 2 | | | | items noted by the appraiser.b. The single |
| involves the home itself. | | | | most important item most homeowners overlook |
| | | | is STREET APPEAL! At resale, it's everything. |
| 1. Financing related actions:a. For those | | | | Cute houses resell better and faster in ALL |
| that acquired a sub-prime mortgage due to | | | | markets. It can often get you an offer above |
| credit problems, begin a full court press on | | | | the asking price.c. The homeowner should do |
| improving your credit scores. This is a very | | | | most of the work. If you use contractors, |
| broad subject to cover here but the key is | | | | only use them for critical building code |
| you must start TODAY! There are a number of | | | | items like electrical, structural and some |
| services and books out there that can help. | | | | plumbing, otherwise you could make your |
| If you are not sure where to turn, go to our | | | | situation worse.d. Consult a realtor very |
| website in the upper part of the home page | | | | familiar with your area about what buyers |
| above my toll free number and click on the | | | | want and don't over improve for your |
| link for Guaranteed help.b. If you had to get | | | | neighborhood and if you need or want to sell, |
| a stated income or No Doc sub-prime or "Alt | | | | clean and depersonalize your structure. No |
| A" mortgage due to income that is difficult | | | | clutter and empty looking closets, personal |
| to document, you need to talk with your CPA | | | | stuff and excessive furniture put away in |
| or accountant. If you are using aggressive | | | | storage, no wild colored paint or special |
| tax tactics to shelter some income you may | | | | paint treatment and nothing in disrepair! |
| need to need reconsider, especially if the | | | | |
| benefit was a one-time tax reduction. | | | | There you have it. So stop being depressed |
| Remember, you are paying a higher interest | | | | and start taking action. A planned set of |
| rate for these type loans for as much as 40 | | | | actions can cure the worst of anxieties. Good |
| years. You could even file an amended tax | | | | Luck! |
| return for the prior year or two. Work with | | | | |