MORE HOME WARRANTY INFORMATION!

If you read my previous blog you learned of an issue I had with a buyer using a home warranty. Since I wrote that blog I have learned some more things that might be of interest to you and your clients. The biggest suggestion I have for you is to educate your client on the use of home warrantys. After 8 years in the industry, I have taken it for granted that my clients fully understand their use. The biggest point to emphasize is that a home warranty is not purchased to fix items that are already broken. The warranty is a form of "insurance" in case a system, in good working order, breaks in the future. Yes you would be surprised how many folks do not grasp this concept. The next point is to encourage your client not to immediately start making claims once they move into a home. Filing claims within 24 hours of moving into a property does not go over well with a warranty company. Before you file a claim make sure you have used the system numerous times without an issue. Again filing a claim within 24 hours on a system will raise some doubt from the warranty company. When you call the warranty company make sure you can explain the situation clearly. They are going to ask you if the system worked properly, how long had the system worked properly before you had a problem, and what the specific issue is concerning the system. Don't file multiple claims at one time. Know your warranty before you call. Do you have optional AC coverage, refrigerator coverage, roof leak coverage, etc.... I firmly believe that the warranty gives both buyer and seller a good piece of mind in the home sale/buying process. As agents we need to take the time to help our clients understand how to use them properly. If you are in the north Atlanta area come check us out: www.randywellsteam.com

Foreclosure Relief from The Federal Government

The US Attorney General has announced a plan to help homeowners, who are underwater on their mortgages, get relief.

Before you start doing “the wave” there are a couple of items you need to know:
• Your loan must be owned by one of five banks: Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial
• You will need to be delinquent on your payments, threat of foreclosure, and mortgage is more than the home’s current value

If you qualify then this program will reduce the amount of principal on your mortgage. Numbers range from $15,000 to $20,000 in principal reduction.

Overall Freddie Mac, Fannie Mae, own approximately 46% of the nation’s mortgages (including mine!). This means that the plan will be offered to a small amount of homeowners.

In my opinion: In my neighborhood (an hour north of Atlanta) I have seen multiple foreclosures in the past few years. Matter of fact there are another four that are available at this time. The reasons for these foreclosures were varied: Loss of a job, builders losing their companies, divorces, and one neighbor convicted for federal mail fraud! While their home were in short sale, and then ultimately advertised for foreclosure, I looked at the debt acquired on their homes. The numbers, in some cases, were astonishing! Multiple mortgages in excess of 110% of the purchase of the home. One homeowner had over $1 million dollar in loans on his home (the home sold in foreclosure for approximately $390,000). My take on my local foreclosure market is this: The majority of folks I knew had a lot of debt in the good times and was always on the edge. No program would help them stay in their home. It appears that the quicker we can clean out the foreclosures in my neighborhood then the quicker we can return to some sense of a normal real estate market. $20,000 reductions on my neighbor’s loan principal will not

Zoning Debate in Forsyth County

Read an article in the Jan 30th AJC concerning Forsyth County and a debate on zoning.

Forsyth County reflects what many counties in Georgia, and nationwide, will be up against when they look at ways to bring in business to help their tax base. Many counties in North Georgia rely on residential for the majority of their property taxes. Forsyth County has quite a few businesses that add money to the tax rolls. However the county experienced a large influx of money as a result of the housing boom.

Now that new housing construction in Forsyth County, as well as, the entire Atlanta area continues to be flat Forsyth County is looking for commercial opportunities to contribute to the tax rolls.

The dilemma they find themselves in, according to the article, is whether to give variations to attract business investment.

According to the development watchdog group. Smart Growth Forsyth the answer is no. They worry that the county will increase the amount of zoning variations requested. That would lead to a further erosion of zoning standards.

This debate will take place in all of our counties. Stay informed, and involved, in your county. Eventually decisions like these could directly affect you, your quality of life, and potentially your home value