blog/web-journal

Homeowners who are considering defaulting on their mortgage need to carefully consider the pros and cons. They should also consider meeting with a lawyer who specializes in financial issues. As strategic defaults increase, more homeowners who feel overwhelmed by their mortgage situation are considering just walking away. Before a homeowner walks away from their mortgage debt, however, there are several important factors they need to consider. Homeowners need to make sure that the benefits of a strategic default far outweigh the costs.

The first thing a homeowner needs to do is to fully understand what a strategic default is. A strategic default is when a homeowner can afford to continue making payments but chooses not to do so. The most common reason that a homeowner chooses to stop making payments is because the loan amount is more than the value of the property. This occurs when the real estate market crashes and causes home values to plummet. When a homeowner owes more on their property than it is worth, the property is said to be underwater. A homeowner with a mortgage on a home that has lost a significant amount of value might pay back the loan for years and never recoup on their investment. Some homeowners choose to walk away from their property instead.

Secondly, homeowners considering a strategic default should familiarize themselves with the pertinent laws in their state. In some states, the homeowner effectively fulfills their end of the agreement by handing the keys of the mortgaged property back to the bank. The bank cannot force the homeowner to pay back the full amount of the loan if the property has dropped in value. In some states, however, the homeowner is responsible for the full amount of the loan. Even if they walk away from the house, the bank can still require them to pay. These states allow the banks to take legal actions against homeowners who attempt to strategically default on their home loans. For this reason, it is particularly important that any homeowner considering a strategic default carefully research the local laws.

Thirdly, homeowners should be prepared to live without credit for a while after they walk away from their mortgage. Financial experts estimate that it takes between three and five years for an individual who defaults on their mortgage to get a good credit score again. Homeowners who default on their mortgage need to make any upcoming major purchases before they stop making mortgage payments.

Finally, homeowners have to decide for themselves if they can ethically walk away from their debt. Many individuals feel shame if they are unable to pay back money that they owe. Others feel fine about doing this, stating that the bank does not seem to have any ethical concerns, so they do not see why they should either. This is an individual decision that homeowners must make themselves. Depending on a homeowner’s state of residence and personal beliefs about debt repayment, a strategic default might be a viable option.

Source: Broker Agent Social – June 2010. Author: Joe Cline.

…. but this could be the best bit of news for a while. A new Orlando Ale House has commenced construction next to the Orange Lake Publix and across the road from the Olive Garden restaurant in Rolling Oaks Commons: 

At last, we’re going to have a superb sports bar/casual dining restaurant on west US192!.

RISMEDIA, June 24, 2010.  Disney unveiled Golden Oak, a one-of-a-kind luxury residential resort community offering the unprecedented opportunity to purchase a home at Walt Disney World Resort in Florida. Especially designed for resort living, Golden Oak will provide an entirely new way for families to connect with the world’s best known family destination and entertainment brand.

“We have a range of options for Guests at all price points to enjoy the Walt Disney World Resort. But Golden Oak is something totally new: a residential resort community, right in the heart of the magic,” said Matt Kelly, vice president, Disney Resort Real Estate Development. “Golden Oak will be a place where families can come together and make memories for generations to come – with Disney World right at their doorstep.”

Golden Oak will offer a limited collection of single family custom homes priced between $1.5 and $8 million, with fewer than 30 home sites available for sale this year. Designed by Disney’s famed Imagineers, the gated community will feature intimate neighborhoods and amenities created with everyone in the family in mind. Disney’s well-known attention to detail is visible in every park, pathway and the custom-design of the proposed private clubhouse. Expansive conservation areas comprise almost half of the entire 980 acre footprint.

The proposed private clubhouse, concierge services and collection of Walt Disney World Resort benefits will bring Disney’s guest service culture directly to Golden Oak residents. As previously announced, Golden Oak is planned to include Four Seasons Resort Orlando at Walt Disney World Resort, combining Disney’s renowned service and hospitality with Four Seasons’ defining standard of excellence. Golden Oak plans to offer residents access to select Four Seasons’ future amenities including the full service spa, restaurants, golf course and event space.

Initially, Golden Oak will consist of three types of single family homes. Village Homes will capture the romantic look of a Mediterranean village on home sites up to one-quarter acre. Estate Homes, on approximately one-half acre home sites, will offer a variety of architectural styles including Tuscan, Spanish Revival, Venetian, Italianate, Dutch Colonial and Island Colonial. At up to three-quarters acre in size, Grand Estate Homes will include architectural styles consistent with Estate Homes and will accommodate the needs of large families. Homeowners will use one of Golden Oak’s select custom homebuilders to build the home of their dreams.

BLUE SKY, BLUE WATER, & A GOOD FRIEND

It’s why we live in Florida…

With the summer buying and selling season just around the corner, now is the time to think about how you can create a lasting first impression with potential buyers. Here are 8 simple tips that will help your home stand out from the crowd.

Open the drapes and blinds. Sunshine is the world’s best decorator and nothing is more depressing than walking into a home where shades, curtains and drapes are closed.

Wash the windows – inside and out. For the same reasons as above, no other small improvement will give you more bang than this.

Clean up the yard. Cut back overgrown shrubs, particularly those that obscure windows or make it difficult to get to the front door. Mow the grass, rake or pick up downed leaves and branches, put away lawn tools, kids’ toys and discard or store any outdoor furniture that is rusty or ragged. If season and funds permit, put down some colorful annuals or put a few nicely planted containers on or near the front porch.

Clutter Control. De-cluttering and organizing your home is very important and not just to make the place look neat. A cluttered home looks smaller and less airy. All of the pictures, knick-knacks, even an exquisite art collection are distracting to many buyers.

Clean your kitchen and bathrooms. Be sure to pay attention to the kitchen and bathrooms. The kitchen may be old but it can still sparkle. Clean the stovetop with a good degreaser and all countertops to remove stains and discoloration. Wash the front of all cupboards and appliances and keep the floor swept and scrubbed for as long as the home is on the market. De-clutter here too, especially the refrigerator door. Ditch countertop appliances, canisters, etc and keep cupboard doors and drawers closed if your hand is not actually in them. It is critical that the bathrooms sparkle. Old bathrooms can be charming and a new shower curtain or fresh flowers on the counter may be all you need. Put out your best towels and, if you have young children, enforce the flush rule.

Refinish hardwood floors. These are a major selling point when selling your home and sometimes a home’s most compelling feature. Often they don’t need complete refinishing, just to be roughed up and polyurethaned to obtain that killer shine.

Paint/Repaint Your Home. If your taste in decorating is a bit strong, it may pay to hire a professional to tone down some of the more dramatic color rooms. Neutral colors are best for marketing your home for sale.

Buy, borrow or rent what you need. If your furniture shows the effect of raising five kids or if pets have ruined the rugs and upholstery, think about storing or getting rid of your existing furniture and finding just enough more attractive stuff to get by. If your nest is empty and the kids’ rooms are beaten up, throw out the furniture, give the walls a quick wash coat of paint and put one or two small flea market pieces – a hobby horse, a bean-bag chair, the old bassinette from the attic – in the room to merely suggest its use.

Author: Paige Tepping. RISMEDIA, May 2010.

An update to an earlier posting on the Buffalo Wild Wings construction:

If you’ve been worried by the federal government’s recent advice to homeowners to remove any problem drywall, keep this in mind: If the defective material is in your home, there’s a good chance you’re aware of it by now. It’s detected by the corrosion of copper wiring and other metals, and signs of it pop up fairly quickly.

“A lot of these houses had air conditioner coils that needed replacement in the first six months or year,” said Mark Cramer, a home inspector in Indian Rocks Beach, Fla.

Since December 2008, the Consumer Product Safety Commission has received more than 3,000 consumer complaints about drywall, according to its website. The material corrodes homes’ metal components and some people have complained of health symptoms they believe are caused by the drywall. Many consumers with the problem are reporting that their homes were built in 2006 and 2007, the CPSC said on its site.

Remediation can cost thousands of dollars, Cramer said. In recent weeks, CPSC and U.S. Department of Housing and Urban Development released guidelines for homeowners dealing with remediation. The guidelines call for the removal and replacement of all possible problem drywall, fire safety alarm devices, electrical components and wiring, gas service piping and fire suppression sprinkler systems.

Homeowners “pretty much know they’re between a rock and a hard place if they have this stuff, and there’s not really anything they can do short of tearing it all out and throwing it away, which can be incredibly expensive,” Cramer said. While the cost will vary by the size of the house and the amount of problem drywall, some homeowners could be facing $50,000 or more to correct the problem, he said.

And it’s a problem that will need to be fixed: If a home contains problem drywall, it will be very difficult to sell or rent before it is removed and replaced, Cramer said.

Many of the homes with the defective material have been in Florida, Louisiana, Virginia, Mississippi and Alabama. Florida homeowners have been particularly hard-hit.

Claims have been filed by affected homeowners, and a court decision will eventually decide what, if any, compensation they should receive, said David Jaffe, vice president for construction liability at the National Association of Home Builders. In the meantime, HUD told cities, counties and states that Community Development Block Grant funds could be used to combat the problem. Some homeowners also might be eligible for mortgage relief as they deal with remediation.

What homeowners need to know:

Homeowners who think they might have problem drywall in their houses should know the following:

- Not all problem drywall is from China. While some of the drywall originated in China, some was manufactured in the U.S. Plus, some drywall from China is not corrosive.

- Homes often have a mix of drywall. Homes might contain drywall from different manufacturers. “You could have problem drywall on the first floor and not on the second floor,” said Cramer.

- Beware of scams. Identifying this problem isn’t difficult: Inspectors will look for signs of corrosion in electrical wiring, copper coils inside the air conditioner and any metal fittings in the house that may be tarnished. Be suspicious of anyone who wants to do much beyond that inspection. The Federal Trade Commission has also advised consumers to confirm a contractor’s references, qualifications and background before hiring him or her to test for or remove problem drywall.

- If you’re buying a home built between 2001 and 2008, check for problem drywall. Cramer advises people to hire an inspector who can perform a visual check for problems associated with the problem material.

- No long-term health effects have been confirmed yet. While some people have reported symptoms including respiratory irritation, watering eyes and scratchy throats when they’re in homes with the drywall, there is no evidence that there are long-term health effects related to the problem drywall. Testing is still ongoing as to whether the corrosion affects the durability of the wiring in the home.

By Amy Hoak. RISMEDIA. 2010.  (c) 2010, MarketWatch.com Inc. Distributed by McClatchy-Tribune Information Service 

Once a month, for the next 12 months, we will be providing several small simple tips that can be done to help keep your Florida gardens and lawns healthy. 

• - With the onset of the rainey season, adjust irrigation frequency based on the rainfall received.
• - Direct downspouts onto lawn areas rather than pavement.
• - Never apply fertilizer or pesticides if rain is expected within 24 hours.
• - Apply liquid iron sulfate to green up the lawn as needed throughout the summer.

University of Florida – Florida Yards & Gardens, IFAS Extension

Summer’s here…  and it’s as good a time as any to do one of our”Just for Fun” segments.

Here’s 2010′s first challenge…

The first current vacation home owners within 15 minutes of WDW to identify where and who this is, win the prize.

ANS: 7.6.2010 – The Speckled Butterbean:  A small restaurant specializing in Southern style country buffet located inside the Sumter County Farmer’s Market.

WINNER: While there were several close guesses on the location, no one was able to name the subject of the photograph even though we know many among our readers have walked right by it. Certainly was fascinating to note from one segment of our audience how many thought others they knew actually lived in a structure like this for awhile… 

*30 Day Contest – (Expired)

RISMEDIA. 2010. As spring approaches, many homeowners grow eager to start remodeling projects to update and refresh their surroundings. Before getting started, it’s a good idea to hire a professional remodeler for a workable plan and better results, according to the National Association of Home Builders (NAHB).

“A professional remodeler knows how to translate a homeowner’s dreams and budget into a beautiful reality,” said Donna Shirey, CGR, CAPS, CGP, president of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. “They have the expertise and skills to satisfy a customer while keeping the budget in check.”

Here are five tips for planning a successful home remodel that you can enjoy for many years to come.

1. Compile a list of home remodeling ideas and draft a budget for the work.
You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials and implementing creative design solutions.

2. Look for a professional remodeler to help plan the project.
Start by searching NAHB’s Directory of Professional Remodelers at www.nahb.org/remodel. You’ll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.

3. Check the references and background of the remodeler.
After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated and more likely to stay on top of construction and design trends.

4. Agree on a contract.
Talk over the details of the home remodeling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.

5. Take advantage of the energy efficiency tax credits.
If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater or installing energy generating products (such as solar panels, heat pumps or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills.

For more information, visit www.nahb.org.