Are Loan Modifications Good for Homeowners?

You've heard about them and you may have actually spoken to your mortgage lender about one. What I'm speaking of is a loan modification. A loan modification keeps the homeowner in the house and helps the bank to avoid foreclosure or a short sale on the house. Most people who need a loan modification are those who have had trouble making their regular payments due to a significant financial calamity. Some of those include divorce, medical emergency bills, loss of a job, and reduction in the value of the home due to changing market conditions.

Several friends have called me over the years asking me about these. In short, they're a type of refinance on the house. Sometimes the interest rate may be reduced, yet other times it may be increased. Monthly payments could go up or go down. Each situation is different, depending on the amount that is currently owed to get the payments current. The cost to modify the loan is in the neighborhood of two or three times your monthly mortgage payment. If, for example, your monthly mortgage payment is $1000 a month, then the cost to modify is somewhere in the neighborhood of $2000 to $3000. This cost is usually added onto the principle amount owed on the house, so the new terms calculate interest on that amount, too.

Since banks typically only recoup about 65% of the value of a home when they foreclose, they would prefer to modify the loan. Homeowners will benefit by banks that are willing to modify their loans.

There's a great article in Realty Times. If you click HERE, you can read the full article to learn more about the ins and outs of loan modifications.

There are many real estate agents in Middle Tennessee. To work with an agent who is knowledgeable and professional, please give me a call. I enjoy working with first-time and experienced buyers as well as current homeowners.

National Hamburger Month

Who would have ever guessed that there was a National Hamburger Month? Until yesterday, I'd never heard of it, but it intrigued me so much I decided to do a little research and then write about it.

There's no official proclamation or inaugural year, but it's so popular that a Google search of 'national hamburger month' yields multiple results. Apparently White Castle, the nation's first burger chain, started the idea, but there's no history of it on White Castle's website.

One of America's favorite foods, the hamburger supposedly dated back to the early 1200s, the days of Genghis Khan. Today,we recognize hamburgers for sale at our local Golden Arches, Krystal and a host of other chains. But most people admit their favorite burger is the one they grill in their own backyard. For more hamburger history, click HERE. What you'll find will intrigue and surprise you.

My favorite recipe is a simple one:

- 2 pounds of 92% ground beef (I use Laura's Lean Beef, found in the organic meat section of your local grocery store), divided into thirds*
- Shape portions into six patties
- Season with Johnny's seasoning
- Grill on medium heat, turning only once after the juices float to the top of the burger
- Serve on hamburger or kaiser buns (white or wheat) with traditional condiments, lettuce and tomato
- Serve with fries, baked beans and mixed fruit

For those of you who opt to forgo the grill and head out to a local dig, you may want to try either of these places for great burgers (these are my favs in Nashville):

- Ruby Tuesday's Triple Prime Burger, served with endless fries

- Fat Mo's Little Mo Burger (I get the combo with seasoned fries to go)

- McDonald's Double Cheeseburger with shredded cheese (this is the cheese they use on Snack Wraps) and Big Mac Sauce (yes, you can special order a burger there)

May is almost gone, so we need to celebrate the incredible hamburger by Sunday. So much for dieting this month, hey, it's worth it! Enjoy, my friends, enjoy ...

A real estate agent who knows Nashville and is professional, I can help you find a home at the price, terms and conditions acceptable to you. If you'll give me a call, I'll be glad to show you my Homebuyer's Assistance Plan, a plan second to none that even experienced buyers like to follow.

*Laura's 92% lean beef also comes in patties for your convenience.

Greening Up Nashville's Homes

You're the envy of the neighborhood. It's a real showplace and you even have a chance at winning "Yard of the Month". The grass is manicured at three inches and beautifully green. Last fall's aerating, overseeding and watering worked like a charm on this spring's lawn.

Stop! While preparing the lawn for the spring is making things 'green', what I really wanted to talk about today is 'green homes'. We've heard a lot about green homes in the last few years, and they're getting even more attention.

What makes a house 'green'? General Guidelines include:
- Plug air leaks
- Choose Energy Star appliances
- Explore solar power
- Reduce water use
- Use low-VOC products
- Use wood alternatives or FSC-certified wood products
- Plant trees to provide shade and wind protection for your home
- Use native plantings

This, in no way, provides a fully comprehensive list. To learn about the 'green home' standards, click HERE. You'll learn a lot about how to make your home more energy efficient. Nashville is becoming more of a 'green home' market. To read the article in The Tennessean about Nashville's green home market, use THIS LINK.

For an agent who understands the Nashville real estate market, you may want to give me a call or send me an email. I'm happy to answer all of your questions about your home and can point you in the direction of an Energy Star home inspector.

Renting vs. Owning

So, you've never owned a home before, but for the first time, you're actually considering stepping out on that limb and taking the plunge into owning a home. Congratulations! You've come pretty far.

I remember the first time I bought a home. I thought my credit wasn't that great and I worried about paying more than 7.5% interest. When we finally decided to put down roots in Jacksonville, Florida, our mortgage lender pulled our credit 'just to see what it was'. We actually had nothing to worry about. And with that, we took the plunge into buying our first home.

Rest assured. Owning a home, while nail-biting and exciting, is a great investment. While lenders are scrutinizing mortgage loan applications a little closer, even those with a 620 credit score may still qualify for a mortgage.

To help you make a decision about whether 'to buy' or 'not to buy', here are a few comparisons between owning and renting:

Owning:
- Tax benefits of ownership are available for monies spent on interest and other deductions.
- Control of occupancy is assured since you are your own 'landlord'. No one can tell you when you have to move.
- You can accumulate equity over time.
- Appreciation in value is the norm. Owners enjoy increasing values.
- You choose the decor of your home.
- You reap the benefits from any additions and improvements.
- It's yours! You can have a sense of price in owning your own home.

Renting:
- You cannot deduct rent payments from income tax.
- You are subject to the landlord's lease and this typically means annual increased rent payments.
- There is no equity accumulation in renting. You are throwing away your money every month.
- Only landlords benefit from appreciation in values - not tenants.
- You live in someone else's decor choices.
- The landlord benefits from any work and improvements you make to the property.
- Your rent does not invest in your future every month.

Well, there you have it - an honest comparison of owning vs. renting. It's very revealing, isn't it?! Are you ready to take that plunge now? Today is a great day to buy. Prices have never been better. Sellers have never been more willing to negotiate. And interest rates are at their all-time low.

If you need help purchasing a home and desire to work with a knowledgeable professional, give me a shout. I'd love to help you take that first step in owning a home.

The Easy Way to Get Your House Sold!

With the down real estate market here in Nashville, getting a home ready to sell is no longer an option. People can no longer get 100% loans, so they need their savings for the down payment on the house. In the past, savings were used to repair or upgrade a house. No more!

If you want to get your house sold in record time for top dollar, taking care of repairs is a necessity. Before listing, get a home inspection and take care of the repairs. If you can, upgrade the house as much as possible to bring it up to date.

When making upgrades, do not overspend. Putting granite countertops in the kitchen of a $150,000 house is overkill. Yet, upgrading the laminate with a granite-look pattern is a wise move.

The Tennessean ran an article today that emphasizes what sellers should do. My parents listed their home (in Williamsburg, Virginia) back in mid-March. The 57 year old house was in great condition overall, and by spending a few thousand dollars to refinish their hardwood floors, update a few light fixtures and ceiling fans, and paint the house in neutral colors, they realized over $30,000 more in proceeds. Five weeks after listing the house, it sold, and it only has one bathroom. My parents made a very wise decision.

Regardless of where the market is, sellers typically think their houses are worth much more than they are, even when the houses need work or updating. The Nashville area market is on the upswing, but it's not where it was before. It will take some time for it to fully recover, so if you want your house to sell in record time for top dollar, the house must be in top-notch condition. While it may take a little bit of time to get your house ready to sell, it's EASY!

To read the article, click THIS LINK.

If you are in the market to sell your home and want to work with a professional real estate agent who understands how to get a house sold, give me a call. I'll be glad to meet with you to discuss what you need to do to get your house in great condition to get it sold for the price, terms and conditions acceptable to you.

Chat with Me ....

Want to know more about Jack's Faves & Raves? How about the latest about real estae? Or what's new in Nashville? If so, then let's chat! On the right side of this blog's home page, you'll find a chat box that enables us to chat privately. Just click on the box to get started. If I'm online, I'll respond.

School's Out, So Whaddya Do Now?

This week marks the end of school for many area school systems. Are you overwhelmed with what you're going to do with the kids this summer? Out of ideas? Here are some:

1 - Join a local community pool (if your neighborhood doesn't have one). Take them to the pool for an hour or two in the morning before the sun gets really hot.

2 - Teach your child how to mow the yard and let him/her have some experience mowing it when the grass is not unbearably high.

3 - Help your child set up a 'lemonade and cookies' stand. Teach him/her how to budget for expenses and to find customers in a busy location.

4 - Teach your child how to cook. Start with something simple like chocolate chip cookies, bacon and eggs, cupcakes, and hot dogs. Let them plan a meal and cook dinner once a week.

5 - Show your child how to do his/her own laundry and let him/her experiment.

6 - Go on several short family vacations to nearby places. Suggestions include Fall Creek Falls, Memphis, Knoxville, Chattanooga, and/or Holiday World (Santa Claus, Indiana).

7 - Make a weekly trip to the library to check out books and DVDs.

8 - Go to the mall and just walk together as a family. After your walk, take a few hours and shop and eat lunch or a snack.

9 - Teach your child how to wash the car and allow him/her to do that for you once a week.

10 - Have family fun nights once a week where you watch a DVD together while eating a "Silly Supper". (Note: Silly Suppers can be anything you want them to be, as long as they're not dinner fare that you would typically eat.)

Doing things with kids is great, but sometimes a little advanced planning needs to take place. Children (of all ages) want to spend some time with their parents, so don't feel like you're invading their space by asking them to participate. It's all about spending time together and the memories that are made will never leave them. Also, everyone will have great fun.

If you're looking for a real estate agent who cares about you and your family, then contact me by phone or by email. I'm here to help you with the purchase of a new home and/or the sale of your existing home. Professional and knowledgeable, I can provide real estate services for you that are second to none.

Tax Credits for Current Homeowners

With all the hoopla surrounding new homeowners and the (up to) $8,000 tax credit, there's been little coverage about tax credits for existing homeowners. If you are upgrading your home this year, you qualify for a tax credit for specific things that make your home more energy efficient.

So what qualifies? The list follows this paragraph, but keep in mind that the tax credits are NOT dollar for dollar. In fact, some of the upgrades are much more expensive than typical replacements, so you won't receive the same dollar amount in credits that you spend on energy efficiency.

AND THE CATEGORIES INCLUDE:

Adding Insulation

Replacing Windows

Replacing Doors

Installing a new A/C

Replacing the Roof

For more information on the tax credit categories, click HERE. And for more specifics about the credits, contact your CPA or tax advisor, or check www.irs.gov.

Contact Jack Jernigan if you want to hire a full-time professional real estate agent who can give you knowledgeable advice on getting your home sold. Jack also works with buyers and is a savvy negotiator who can get the price, terms and conditions acceptable to you.

Staging for Success

You're ready to go. The move is inevitable. You've selected the best agent to market your property and the price is right on the money. Easy sell, right? Wrong! In today's buyer's market, a house priced right in a great location is probably competing for a buyer with the other 30 houses priced right in a great location.

There is one important question that needs to be asked: Is my house a VALUE perceived by buyers? Even though it's priced right, you need an edge to make it THE value that buyers want. The answer to this is staging.

Staging turns the home you live in into a model home. It makes rooms feel larger and roomier, gives buyers an idea of how their belongings would fit in the space, and helps buyers to see how they would live in the house.

So how do you stage your house?

1- CLEAN thoroughly. If you don't have time to clean, hire a professional cleaning service to come in to clean the house. This includes windows, window sills, walls, bathrooms, kitchen, etc. Paint is very inexpensive and will heighten the interest of buyers. If your house needs to be freshened up, a good paint job will do the trick. Your house has to sparkle!

2 - FIX anything that needs to be repaired. This includes windows with broken seals, leaky plumbing, etc. If you want to know the true condition of your house, hire a licensed home inspector to give you a thorough inspection.

3 - ELIMINATE clutter. Start in the kitchen. Organize the cabinets as well as the refrigerator and pantry, clear off your counter tops. Also take the time to organize your bedroom, hall and linen closets. Make sure you don't forget to eliminate personal items in the bath as well. Make sure everything is neat and organized. Yes, buyers do look in closets, cabinets and in bathroom drawers.

4 - NEUTRALIZE colors. If your house has an eggplant bedroom, black trim, or a Tennessee orange family room, then repaint with a neutral color. Neutrals are not limited to beiges and tans. Explore some contemporary neutrals in the brown and green families. Talk with a local designer or check out some model homes in new neighborhoods. Don't forget to neutralize odors, too. Pet and cigarette odors are immediate turn offs.

5 - DEPERSONALIZE your home. Removing political or organizational trinkets and accessories that would potentially deter buyers from seeing themselves in your home.

On March 17, my parents listed their home to sell in Williamsburg, Virginia. Just a small three bedroom, one bath home in an established neighborhood, their spent a few thousand dollars to have the hardwood floors refinished and the walls and trim painted neutral colors. They also decluttered the house by storing some unnecessary furniture in the garage and attic. In just five weeks, they had an acceptable offer on their house. Currently, Williamsburg is a buyer's market.

For more on staging your house, check out THIS LINK. Staging will take some time, but it will be well worth it in the end when you're sitting at the closing table signing on the dotted line.

If you're looking for a real estate agent who understands staging, please feel free to contact me. I will provide advice on how to get your home staged for successful results, and will also provide you with references to stagers in the area who can help you get your home ready to sell.

Facebook Friends

Last summer I heard about all the hoopla about Facebook, so I checked it out. I established my page and it wasn't too long before I heard from a former math student of mine. We chatted and laughed about old times. Then other students found me. Then business associates. Then friends from church. And kids I grew up with. Even my sister (who's not computer savvy) joined. (In the pic at left are Nicole Ciner Baker, Jack Jernigan, and Tina Gilreath Pollard. Nicole and Tina were in my math class my first year of teaching in 1985.)

Never a substitute for interpersonal relationships, Facebook has become "connection central" for so many. It's wonderful to reconnect with other people, rekindling old relationships, and to find new ones. I have been blessed.

Probably one of the greatest blessings from Facebook has been reconnecting with former students. As a young, first-year teacher at New Kent High School near Richmond, Virginia, I had a desperate need to succeed. Being 23 with an 18-year-old appearance didn't help me to convey the serious demeanor I tried to possess.

A few months ago I received a Facebook invite to a New Kent High School Facebook Reunion at The Tobacco Company in Richmond. I was the only teacher there. It was great to see Tina, Karen, Stuart, Jeff, Shelly, Nicole, Wendy, Donna, and other students I taught in Math class. Tina loves to tell the story about her last day of her senior year. She had been late so many times that I sent her to In School Suspension (ISS) to serve out her sentence. We laughed and laughed about that. And we're still laughing about it.

Yes, those were good times. And while it's been great to enjoy reconnecting with people on Facebook, I enjoy the people I connect with every day. My family, friends and clients mean the world to me. You all are very special and I'm glad I know you. I'm also glad that you impact my life in so many positive ways. For this, I am very grateful.