Homeowners Association Gone Wild
How would you like to receive a letter from your homeowner’s association that starts out like this? During a recent inspection it was noted that you were in violation of the Covenants and Architectural Guidelines for the following reason:
General Maintenance - Paint Metal Roof: "Each homeowner shall keep and maintain each Lot and Structure owner by him, as well as all landscaping located thereon, in good condition and repair…"
Specifically please paint the metal roof on the front of the house to match the shutters.
We will recheck your property in approximately twenty (20) days from the date of this letter. Please note that violations that are not corrected by that date or continue to be repeat violations will incur a fine of $25 per day. The association has the right of abatement (the right to correct the violation at your expense) and the right to membership suspension. Please refer to the Covenants.
In my subdivision many of the bay windows and Queen Anne returns are covered with copper. Now if the copper roof is to be painted the same color as the shutters, then just on my cul-de-sac of 7 homes there would be grey, taupe, reddish orange, blue and black painted copper. I think it is easy to visualize just how silly that would look. Obviously the individual that wrote this letter was not very well versed about copper roofs and their maintenance. For those who don’t know as it ages, copper naturally goes through several stages. Rather than educating themselves first, it is sad that the homeowner’s association just sent out this letter for no good reason.
After several phone conversations and countless hours of research obtaining documentation about copper roofs along with emailing these documents to the homeowner’s association the violation was dropped. The resident was guilty until proven innocent. Seems a bit backwards from the way we have all been brought up don’t you think? Below you will see a picture of a monument that started out as bright shiny cooper and been going through the aging process for some time. I think we can all agree that it would be a shame to paint this structure.
2806 Storybook Court
Located in the highly acclaimed Grayson School District, 2806 Storybook Court in the Hawthorn Glen subdivision is a lovely 2 story traditional home with many features found in much more expensive properties. The entire main level of this very open floor plan has hardwood flooring. The kitchen features cherry stained cabinetry along with a gas stove/oven and built-in microwave/vent fan along with a breakfast area. The over sized Great Room is wired for a flat screen TV above the fireplace with glass doors and gas starter. Also on the main level is a Dining Room and a Powder Room. As you head upstairs you notice the wrought iron balusters on the stairway hand rail.
On the upper level the spacious Master Suite has a separate tub/shower along with a large walk-in closet. Also upstairs is the laundry room and 2 additional large bedrooms along with an additional full bath.
The level cul-de-sac setting provides low traffic near the home and the fenced backyard is ideal for pets, children and entertaining. This home is also just a short walk from the community swim and tennis amenities. The annual Home Owner Association dues cover your privileges for these facilities.
New Home Deal In Atlanta
What is the best verbiage to use when marketing a sale on new construction in Greater Atlanta? I recently received an email marketing a builder that was titled “Your Buyers have 2 more weeks to get a Great Deal”. What do you think this email was actually trying to say? Was it that after this two week period is up the deals on this builders homes will really suck? Was it that in 2 weeks the bank was going to foreclose on all this builders inventory? I don’t think that it was either of these two, but the builder needed to clarify his intentions. I feel fairly certain that the builder was trying to create a sence of urgency and increase traffic to the communities he is building in, but don’t do it to the extent that prospective buyers and the agents representing those buyers get the wrong impression.
What About Pricing
One problem that I see with new homes in the Atlanta market is that some of the builders are asking inflated prices for them and then discounting the list price by huge amounts. What is going to happen when this real estate slow down rebounds? Will the builders want to go back to the inflated pricing? Natural tendency would be to say yes. But guess what, the appraisers will be using the discounted pricing for establishing the value of future sales. Kind of a catch-22 don’t you think? Certainly no one expects the builders to work for free. They are entitled to a return on their investment and should run their business accordingly, just be realistic. When I see prices discounted by $50,000 to $100,000 on individual homes, something tells me that the builder is acknowledging that the home was overpriced to begin with. Why not price the homes competitively and negotiate the transaction in a normal manner.
Several years ago when the real estate market in Greater Atlanta was booming, builders viewed real estate agents as a necessary evil and tolerated our existence. With Buyer Agency being so well advertised and promoted as the best course of action by consumer advocates, builders now realize that collectively the REALTOR community is working with the majority of the buyers.
For more information about buyer agency and an Atlanta Buyers Agent contact Mack.
America’s Best Builder - 2007
At the recent RE/MAX Around Atlanta awards breakfast I had the privilege of meeting Bryan Cohen, president of Touchstone Homes. While acknowledging that the housing industry in Atlanta is in a slow down, especially from a new home builder’s perspective, Mr. Cohen spoke about what he and his company did during this time. While the natural tendency may have been to pull back and wait for better economic times, Mr Cohen and Touchstone Homes elected to take a proactive approach. Looking forward, Touchstone Homes elected to utilize this slower time to totally update their state-of-the-art Design Studio that is located in Suwanee. Touchstone Homes realize that purchasers want to personalize their home with the various products and finishes that will make it unique.
America’s Best Builder - 2007
Taking a proactive approach to their business, although not officially one of the categories, could be one of the reasons that Touchstone Homes was named America’s Best Builder for 2007. For more than a decade Builder Magazine and the National Association of Home Builders have recognized the best builders in the nation. Builders are judged by a panel of ten industry experts on finance and operations, customer service, design and construction, quality and marketing. Congratulations Touchstone and keep up the good work.
Down Payment Assistance in Atlanta
The Nehemiah Program
This morning I had the privilege of attending a seminar about down payment assistance and how it can benefit both buyers and sellers in the greater Atlanta market. The seminar was taught by Leslie Kane, Area Manager, of The Nehemiah Program. The Nehemiah Program is charitable organization that has helped over 40,000 families in Georgia achieve their dream of home ownership.
The Nehemiah Program began in Sacramento, California in 1994 and was designed to help a particular community become more stable. The program gets its name, Nehemiah, from a biblical figure that helped rebuild the walls of Jerusalem and since the program was being utilized to help rebuild a community it just seemed to fit.
How Down Payment Assistance Works
If a buyer is qualified to purchase a home using FHA financing then they are automatically qualified to purchase a home using the Nehemiah Program. The home being purchased must be owner occupied and can be single family, duplex, triplex, quadraplex or a FHA approved a condo. With FHA loans the buyer is required to make a minimum down payment of 3% of the loan amount. By utilizing the Nehemiah Program the seller contributes the down payment for the buyer. At the time of entering into a contract with a buyer for the purchase of the home, the seller agrees to contribute the down payment and a small processing fee to the program. This is accomplished using the Participating Home Agreement form from Nehemiah. The program in turn contributes the down payment for the buyer. The buyer completes a Gift Letter form detailing where the gift funds came from and what address they will be used for purchasing. This type program can only be performed by a charitable organization. (Sellers are only committed to pay the contribution and fee if a buyer utilizes The Nehemiah Program to purchase the home.)
Who Benefits From a Down Payment Assistance Program?
The Nehemiah Program is helping both buyers and sellers in the greater Atlanta market. Obviously buyers benefit by being able to purchase homes with little or no money out of pocket. Generally speaking this type program would be for buyers with credit that is good enough for them to be able to purchase a home but they lack having the funds for a down payment. Typically prospective buyers who are currently renting or living at home are good candidates for this type program.
Sellers are also benefiting from this program. With the recent increase in FHA loan limits to $346,250 in the metro Atlanta area and $271,000 in outlying areas, more home sellers find themselves in a position to participate in this type program.
Who Qualifies For Down Payment Assistance?
As was stated earlier, if a buyer is qualified to purchase utilizing a FHA loan then they are automatically qualified to participate in this down payment assistance program. To find out if you qualify for FHA financing and down payment assistance Contact Mack.
Insurance NOT Paid By Homebanc
Today I received this email from a gentleman seeking help because his homeowners insurance had not been paid by his mortgage company.
Your topic: "Homebanc Mortgage Escrow Accounts" came up when I searched it on google.
I have a Homebanc mortgage. I just got a call from my ins. co. stating that they haven’t received my homeowner ins. payment from my mortgage co. after 45 days. I contacted Homebanc and all their numbers and websites are disconnected.
Any news on this, or know what I should do? I’ve been sending my payments in to the same address, and never got a letter stating it was sold to another co., and the payments have been processed like normal. I’m thinking of not paying and seeing who contacts me.
Obviously he has an escrow account and has been making his payments. Unfortunately the insurance did not get paid as it should have. My advice to you would be to write a letter to the address that you are sending your payments to and ask that you be contacted to discuss your escrow account. If this is not successful then you will probably want to contact Countrywide Mortgage. My understanding is that Countrywide was assuming the servicing of Homebanc accounts. To add another twist, Bank of America is buying Countrywide so you may also contact Bank of America if Countrywide has no record of servicing your account. If none of these can provide you with the correct answer you may also contact your state department of banking and finance and ask for their guidance. You should have been notified that the servicing of your mortgage was being handled by a different provider. Unfortunately you were not.
The one thing I would recommend that you not do is avoid paying the payment to see who contacts you. Damaging your credit with a late payment is just not worth it. Sure it will take some time and phone calls to clear this up, but you need to know who is servicing your mortgage in case there is any other problem in the future.
How to Find a Good Builder
So you have decided to build your new dream home. How do you find the right builder? Are you just going to leave it to chance? I hope not. You are preparing to make what is possibly the largest purchase you will ever make. As a buyer you owe it to yourself to practice your due diligence and find a builder who is qualified to build your dream home as well as being someone that you can communicate with about your wishes and desires in your home.
In the Atlanta Real Estate market, the most common ways for a buyer to find prospective builders are via the internet, their REALTOR, word of mouth from their family and friends or from the local Home Builders Association. Once the candidates have been identified the buyer and their buyer’s agent should begin the due diligence period by asking questions to determine the best fit. Here is a list of possible questions to ask:
- How long have you been building homes? (You are looking for 3+ years)
- Is your primary source of income derived by homebuilding?
- What insurance coverage’s do you carry? (You are looking for general liability, workman’s comp, and builder’s risk.)
- What is your primary source of information regarding changes in building codes? (You are looking for trade associations such as the home builder’s association or various continuing education classes)
- What is your written warranty on the homes you build and can I have a copy of it to review?
- What is your policy on home inspections? (You must be allowed to use a code certified inspector)
- Will you provide me with references from your homeowners?
- Due to today’s economic time and the state of the real estate market, would you be willing to share your financial information with us?
- Why should we select you to build our home?
While these may not include every question that you may need to ask, it should provide a good start. Even if the home you are looking to purchase is already started and at some stage of completion you should still ask questions of the builder. After all you are interviewing as an employer. You are hiring someone to build your home.
How does a Short Sale Effect Value
One of the requirements of being a licensed agent is to successfully complete various continuing education classes during each year. Last fall I attended a class on “Understanding Appraisals”. The instructor for this class is an Atlanta Appraiser by the name of Scott Murphy. I found Scott to be extremely knowledgeable and he was more than helpful for the agents taking the class. Taking into account Scott’s experience and expertise, I requested his insight on the effects of a short sale on appraised values from an appraiser’s viewpoint. The following is Scott’s reply:
The effect on the market due to short sales is yet to be seen. Short sales are relatively new to the market. Many short sales will go to investors who know how to manage the complex and time consuming process. They will work the system to obtain the property significantly below market. They in turn will relist and sell the house at market value, much the same as the foreclosure process. These sales will hopefully self correct themselves. The sales that will be most damaging to the market are those which sell to owner occupants slightly below market value with full market exposure.
The true test to the validity of the sale and to determine if the sale is a true arms length sale would be its exposure to the market. Foreclosure sales are generally discarded because a lack of exposure to the market or they are significantly inferior in condition to other homes in the neighborhood. Short sales, on the other hand, are typically in similar condition to other homes in the neighborhood. If the home is multiple listed for a reasonable amount of time (IE: 30 days or more) it is then thought to have been adequately exposed to the market and may very well be an arm’s length sale. The effect these sales will have on the market will be determined by the exposure and the number of them in a given neighborhood. Most neighborhoods can support 1-2 short or distressed sales without altering values. When the number of short of distressed sales exceeds the number of arm’s length sales values will significantly decrease.
I want to thank Scott for taking the time to share his insight. His answer has brought up an even more thought provoking question, Are short sales in any way responsible for the declining markets as viewed by the various mortgage lenders? If so would they not be like a double edged sword, they cut the losses of the lender by foregoing a foreclosure but create a more difficult lending environment for purchasers because entire market areas are becoming classified as declining markets.
Short Sale in Atlanta
If you are having difficulty paying your monthly mortgage payment, you are not alone. Lenders got very creative, even greedy, while inventing mortgage programs that helped families buy their first home or refinance existing mortgages. Many of these programs were for buyers with no money for a down payment or for families with less than perfect credit. These loans were known as subprime loans. One of the most popular of these loan programs were the hybrid adjustable rate mortgage. A hybrid ARM has a low interest rate initially (a teaser rate) which is followed by significant upward adjustments during the remaining years of the loan. Other than lenders, declining or flat markets and tougher economic conditions have contributed to everyone having a more difficult time meeting our monthly obligations.
Recently a new phrase has come into the real estate market, not only in Atlanta, but throughout the nation. That phrase is a short sale.
What is a Short Sale
A short sale is when you have the ability to sell you home, but the proceeds from the sale are less than the actual payoff and expenses involved in selling the home. In a short sale, the mortgage company agrees to accept less than the payoff they are owed. A short sale is an alternative to foreclosure which may benefit both the lender and borrower. Typically a short sale is a better solution for the lender than foreclosure. If the lender had to foreclose on the property, they would be responsible for attorney fees, possible eviction costs, utilities and other various costs associated with a foreclosure. In allowing a short sale the lender may be able to reduce their losses compared to a foreclosure. One important point is that the lenders typically require documentation as to the hardship that has caused the need for a short sale.
What Hardships are Acceptable
Most mortgage companies require a hardship letter prior to discussing a short sale. The hardship letter should present the facts clearly and honestly and must provide the proof regarding the situation that caused the borrower to fall behind on their payments. The following hardships are frequently accepted by mortgage lenders:
- Job Loss or significant loss of income
- Divorce or Separation
- Excessive Medical Bills
- Death of a Spouse
- Military Service
- Adjustment in Mortgage Payment
How Does a Short Sale Affect My Credit
The late payments that lead up to the short sale will, as expected, have a negative impact on your credit. The main advantage to a short sale is avoiding foreclosure. A short sale should be less detrimental on a credit report than either a foreclosure or a deed-in-lieu of foreclosure.
The Mortgage Debt Relief Act of 2007
By signing H.R. 3648, The Mortgage Debt Relief Act of 2007, President Bush changed the tax ramification for anyone selling their home via short sale or owners who are renegotiating their mortgage. Prior to this legislation signed into law any shortage on a full payoff to a lender was considered taxable income.
Work With a Professional
If you are thinking about a short sale on you home, it is recommended that you meet with a professional and discuss you exact circumstances so that you can be given the best guidance for your situation. Working with a REALTOR® who knows how to talk with the Loss Mitigation Departments at the lender as well as being able to guide you on all the proper documentation required for a short sale will make this process easier for you. The actual documentation required by each lender can vary dramatically. To successfully complete a short sale transaction it is necessary for you to have all the elements documented and in place along with having an effective short sale strategy.
I will be happy to meet with you to evaluate your situation and discuss the options that are available to you. Feel free to contact me via email or phone.
Top Middle School In Gwinnett County
The Results Are In
The Iowa Test of Basic Skills results are in and Crews Middle School is the highest achieving middle school in Gwinnett County in every major area; math, language arts, reading, science, and social studies! The Iowa Test of Basic Skills is the standard used by Gwinnett County Public Schools to measure student achievement in elementary and middle schools. Crews went up in every category compared to last year.
Crews Staff Deserves an Ataboy
Crews Middle School achieves at a high level every year. A part of the Gwinnett County Public School Results Based Evaluation System has been to award the highest achieving schools. The school has received this award for the past two years and hopes it will again this year. The money, in large part, has been used to finance professional learning and new technology in the school.
Congratulation Crews Middle School
The teachers couldn’t’t do it without the students and vice versa. So congratulations to your combined effort towards excellence go out to the teachers, students and the parents who support the school. I guess there is nothing left to say except “Ya’ll Done Good”.
