Preparing Your Home for the Market...Tips on making it more sellable!

Before you put your home on the market, take an impartial look at your house, inside and out. You may have only one chance to pique potential buyers' interest when they view your home, so don't let easily correctable flaws stand in the way.

We're in agreement with the NATIONAL ASSOCIATION OF REALTORS® (NAR) which suggests that sellers spend as little as possible on pre-sale repairs and improvements. While new tile might really spark up your kitchen, potential buyers probably won't increase their purchase offers enough to compensate your expenses.

Instead, focus on the small, relatively inexpensive touch-ups that will give your house a polished, well-maintained appearance.

• A fresh coat of neutral paint in your bedrooms
• New cabinet knobs in the kitchen and bathrooms are small changes that buyers will appreciate.
• Thoroughly clean the insides of appliances and wash and deodorize carpets.
• Clean out closets and cabinets; this gives your home a more spacious appearance.
• Check for and repair cracks, leaks and other damage to walls, floors, paint and attic.
• You also need to ensure that your home's exterior curb appeal is attractive to buyers.
• Maintain the upkeep of your lawn, including mowing, watering and weeding.
• Fertilize and seed your existing vegetation/foliage, but don't plant new shrubs or trees.
• Examine doors, windows and the overall exterior for peeling paint.
• Repair loose or damaged roof shingles, siding and caulking.

In a tough real estate market, these small efforts will pay off.

Homeowners - What Not To Do:

Losing your home through foreclosure is a traumatic experience that usually occurs at a time when you already are facing significant financial, and even physical and psychological stress. It is understandable why some homeowners make poor choices when facing foreclosure.

 While some homeowners choose to "walk away" from (abandon) or trash their homes in the face of foreclosure, it is important to realize that these actions carry potentially significant consequences.

1. "Walk Away" from (Abandon) the Home. A homeowner can stop making their mortgage loan payments and abandon their home. However, this plan is usually unsuccessful in the long run. If you "walk away" from your home, you essentially abandon the property and your mortgage loan. Once you miss a single mortgage loan payment, your lender or its servicing agent will begin the foreclosure process and you may not be off the hook.

• If your loan is a non-purchase money mortgage (for example, if it is a refinance loan or a vacation home loan) you are not necessarily protected against future liability. If you "walk away" from this type of loan, you can be held liable for the lender's losses following a judicial foreclosure sale, including court costs and attorney fees.

• If you purchased your home on speculation (hoping to resell the home for a higher price) and have not occupied the home, the loan you obtained to purchase the property is a non-purchase money mortgage. If your lender or its servicing agent elects a judicial foreclosure sale, you may remain personally liable for any deficiency at the time of the foreclosure sale. If you "walk away", your personal liability remains unchanged.

• If you "walk away" from your home, you are still liable for any non-purchase money mortgages that are secondary or "junior" loans (claims/liens). Foreclosure sales do not extinguish these debts and your creditors can seek court judgments against you. In these cases, a "junior" lender may sue in court to obtain a judgment for its losses, as well as court costs and attorney fees (a "sold out junior").

• Federal laws that generally supersede California law control federally insured (FHA) loans. The lenders holding such mortgages typically file claims for the insurance coverage. HUD/FHA may be able to pursue you for any losses they suffer following a foreclosure sale and the payment of the insurance proceeds to your lender.

Laws pertaining to "walk-away" homeowners are complicated and no homeowner should "walk away" from their home and their mortgage loan without seeking the advice from a real estate lawyer. A common "walk-away" situation occurs through divorce. In most families, both the husband and wife sign the mortgage loan documents for their home. If the couple divorces, neither may be able to afford the mortgage loan payment and there may be little to stop either spouse from walking away leaving the other to shoulder the financial burden.

2. If a foreclosure sale occurs because of divorce and both spouses signed the original mortgage loan documents:

• Each spouse will be required to vacate the home after the eviction process is completed.

• Each spouse will experience a loss in credit rating.48

• Each spouse will struggle to secure mortgage loans for at least five years.

Divorce does not automatically erase the name of either spouse from their mortgage loan or from the consequences of a potential foreclosure. Lenders or their servicing agents are unlikely to "remove" one spouse from the mortgage loan before the foreclosure sale simply to preserve that person's credit rating.

3. Trash the Home. Your home is collateral for repayment of your mortgage loan. Its value is the ultimate source of repayment, and its value should not be impaired by your intentional or unintentional behavior.

Deliberate damage to your home is one form of "waste". If serious damage occurs, you may be prosecuted for a crime and you may be sued for damages. Arson (the deliberate destruction of a home by fire) is the most egregious example of waste.

No matter what circumstances bring a homeowner to the point of foreclosure, there is no justification for that homeowner to retaliate against a lender or its servicing agent by damaging the home.

4. Bankruptcy. Foreclosure is not personal. Lenders are simply protecting their interests. If you seriously damage your home before the foreclosure sale, you can be held liable and have a money judgment entered against you that can survive for as long as 20 years. Bankruptcy usually does not remove this kind of money judgment. Over the life of the judgment, the creditor may pursue a variety of collection proceedings, including taking a part of your wages.

While your lender may elect not to sue you for physical damages (called waste), trashing your home is an ill-advised risk. Even if your lender chooses not to pursue a money judgment against you, your lender can notify the district attorney and ask that criminal proceedings be brought against you. The successful bidder/buyer who purchases your home at the foreclosure sale, typically "as is", can also notify the district attorney or bring a civil action against you for intentional damages to the home.

Stephen Munson of Munson Realty makes a great point in his article below about "doing nothing or walking away" from your mortgage.

Walking away is definitely not the answer, both from an integrity standpoint and a legal one too. For those of us in California, there are some serious implications, here's a list of what not to do as it relates to this subject.

Homeowners - What Not To Do:

While some homeowners choose to "walk away" from (abandon) or trash their homes in the face of foreclosure, it is important to realize that these actions carry potentially significant consequences.

1. "Walk Away" from (Abandon) the Home. A homeowner can stop making their mortgage loan payments and abandon their home. However, this plan is usually unsuccessful in the long run. If you "walk away" from your home, you essentially abandon the property and your mortgage loan. Once you miss a single mortgage loan payment, your lender or its servicing agent will begin the foreclosure process and you may not be off the hook.

• If your loan is a non-purchase money mortgage (for example, if it is a refinance loan or a vacation home loan) you are not necessarily protected against future liability. If you "walk away" from this type of loan, you can be held liable for the lender's losses following a judicial foreclosure sale, including court costs and attorney fees.

• If you purchased your home on speculation (hoping to resell the home for a higher price) and have not occupied the home, the loan you obtained to purchase the property is a non-purchase money mortgage. If your lender or its servicing agent elects a judicial foreclosure sale, you may remain personally liable for any deficiency at the time of the foreclosure sale. If you "walk away", your personal liability remains unchanged.

• If you "walk away" from your home, you are still liable for any non-purchase money mortgages that are secondary or "junior" loans (claims/liens). Foreclosure sales do not extinguish these debts and your creditors can seek court judgments against you. In these cases, a "junior" lender may sue in court to obtain a judgment for its losses, as well as court costs and attorney fees (a "sold out junior").

• Federal laws that generally supersede California law control federally insured (FHA) loans. The lenders holding such mortgages typically file claims for the insurance coverage. HUD/FHA may be able to pursue you for any losses they suffer following a foreclosure sale and the payment of the insurance proceeds to your lender.

Laws pertaining to "walk-away" homeowners are complicated and no homeowner should "walk away" from their home and their mortgage loan without seeking the advice from a real estate lawyer. A common "walk-away" situation occurs through divorce. In most families, both the husband and wife sign the mortgage loan documents for their home. If the couple divorces, neither may be able to afford the mortgage loan payment and there may be little to stop either spouse from walking away leaving the other to shoulder the financial burden.

2. If a foreclosure sale occurs because of divorce and both spouses signed the original mortgage loan documents:

• Each spouse will be required to vacate the home after the eviction process is completed.

• Each spouse will experience a loss in credit rating.48

• Each spouse will struggle to secure mortgage loans for at least five years.

Divorce does not automatically erase the name of either spouse from their mortgage loan or from the consequences of a potential foreclosure. Lenders or their servicing agents are unlikely to "remove" one spouse from the mortgage loan before the foreclosure sale simply to preserve that person's credit rating.

3. Trash the Home. Your home is collateral for repayment of your mortgage loan. Its value is the ultimate source of repayment, and its value should not be impaired by your intentional or unintentional behavior.

Deliberate damage to your home is one form of "waste". If serious damage occurs, you may be prosecuted for a crime and you may be sued for damages. Arson (the deliberate destruction of a home by fire) is the most egregious example of waste.

No matter what circumstances bring a homeowner to the point of foreclosure, there is no justification for that homeowner to retaliate against a lender or its servicing agent by damaging the home.

4. Bankruptcy. Foreclosure is not personal. Lenders are simply protecting their interests. If you seriously damage your home before the foreclosure sale, you can be held liable and have a money judgment entered against you that can survive for as long as 20 years. Bankruptcy usually does not remove this kind of money judgment. Over the life of the judgment, the creditor may pursue a variety of collection proceedings, including taking a part of your wages.

While your lender may elect not to sue you for physical damages (called waste), trashing your home is an ill-advised risk. Even if your lender chooses not to pursue a money judgment against you, your lender can notify the district attorney and ask that criminal proceedings be brought 49

against you. The successful bidder/buyer who purchases your home at the foreclosure sale, typically "as is", can also notify the district attorney or bring a civil action against you for intentional damages to the home.

Leaving on vacation, either for a weekend or for an extended period of time can be very hectic and it is easy to forget the small, but important things which may make the difference in an average or a terrific getaway. The following checklist is provided to help you remember some of those small, but significant items.   

Just before Leaving:         

• Unplug temporary use appliances such as irons, curling irons, steam curlers, hair dryers, multi-cord outlets, coffee pots, etc.
• Throw out food that will go bad before you return.
• Set house lights and possibly a radio or television to be activated by a timer.
• Leave a vehicle parked outside
• Empty trash inside and outside home.
• Close windows and drapes, check locks.
• Do NOT change answering machine to say you are away.
• Notify a neighbor

             As the temperature rises, so does the cost of cooling your home, especially if you use an air conditioner. Obviously, the best way to keep your home cool during the summer is to use an air conditioner to keep the temperature down, but there are other options that don't raise your energy bill quite significantly. Air conditioners may offer tempting temporary relief from summer heat, but they're a huge environmental no-no. You may be cooling your home, but the fossil fuels you're burning in the process are only making your summers hotter. This summer, leave the air conditioner in storage and try these environmentally-friendly alternatives instead. Fundamentally, the idea is to minimize sources of heat and remove built-up heat from inside.

Fans and Ceiling Fans

• If you're looking for ways to beat the heat, a ceiling fan can be a great investment for your home. This one appliance can make a room feel 6 or 7 degrees cooler, and even the most power-hungry fan costs less than $10 a month to use if you keep it on for 12 hours a day. Good fans make it possible for you to raise your thermostat setting and save on air-conditioning costs. Fans don't use much energy, but when air is circulating, it feels much cooler. Ceiling fans are best, but a good portable fan can be very effective as well.
• You should remember that even mild air movement of 1 mph can make you feel three or four degrees cooler. Also make sure your ceiling fan is turned for summer - you should feel the air blown downward.

Shades, drapes, or blinds

• Install white window shades, drapes, or blinds to reflect heat away from the house. Close blinds, shades and draperies facing the sun (east-facing windows in the morning and west-facing windows in the afternoon) to keep the sun's heat out and help fans or air conditioners cool more efficiently. Always remember that the best way to keep your home cool is to keep the heat out.

Internal Heat

• The most common sources of internal heat gain are; appliances, electronic devices, and lighting. Be aware from where the heat is comming. Now if you have air conditioning, use it wisely. Don't put lamps, televisions or other heat-generating appliances next to your air-conditioning thermostat, because the heat from these appliances will cause the air conditioner to run longer. The heat they produce will make it think your house is warmer than it really is, and your system will run harder than it needs to.
• Unless you absolutely need them, turn off incandescent lights and heat-generating appliances. Replace incandescent bulbs with compact fluorescents; they produce the same light but use a fifth the energy and heat.
• You should also try to avoid heat-generating activities, such as cooking, on hot days or during the hottest part of the day. If you are cooking, use your range fan to vent the hot air out of your house. By reducing the amount of heat in your home, you will have to use less energy to cool it.

Plants

• Plant trees or shrubs to shade air conditioning units, but not block the airflow. A unit operating in the shade uses less electricity. Deciduous trees planted on the south and west sides will keep your house cool in the summer and allow the sunlight to warm the house during the winter. For example just three trees, properly placed around a house, can save between $100 and $250 annually in cooling and heating costs, and daytime air temperatures can be 3 degrees to 6 degrees cooler in tree-shaded neighborhoods.

Roof and Walls

• Paint your roof white - If you've got a flat roof, paint it with a specially formulated reflective paint or just paint it white. The reflective effect will help to keep the rooms under the flat roof much cooler.

Other things to remember

• Humidity makes room air feel warmer, so reduce indoor humidity. Minimize mid-day washing and drying clothes, showering, and cooking. And when you must do these things, turn on ventilating fans to help extract warm, moist air.
• Avoid landscaping with lots of unshaded rock, cement, or asphalt on the south or west sides because it increases the temperature around the house and radiates heat to the house after the sun has set.
• If the attic isn't already insulated or is under-insulated, insulate it NOW. Upgrading from 3 inches to 12 inches can cut cooling costs by 10 percent.

WHEN:  Saturday & Sunday, July 10th & 11th  

TIME:  1pm-4pm

WHERE:   925 Sierra Vista Drive, Redding CA

DIRECTIONS:

Eureka Way to Sunset Terrace to Red Bud to Sierra Vista Drive

INFO:    ASKING PRICE $469,000

This home has it all! Location, views, a comfortable layout with oversize living areas perfect for large gatherings. Featuring a formal living room with a gorgeous views and french doors leading out to the newly landscaped backyard and waterfall. A large yet inviting family room with picturesque windows and a very cool fireplace. The formal dining room is big and perfect for those large gatherings. Plus there's a cute kitchen nook for your more relaxed meals. The house offers a huge master bedroom suite, two large guestrooms plus a 1 bedroom/1 bathroom in-law unit that can also be accessed through a separate entrance next to the garage....

~ About The Neighborhood Sunset Terrace ~

Sunset Terrace is a highly desirable neighborhood. It was established in the early 60's when homes were built with magnificient curb appeal, strong bones and unique character. During the high real estate market, homes in Sunset Terrace peaked at about $975,000. Driving through these streets, you see why locals love this area. Walkable, clean streets with spectacular mountain and river views are a few of the reasons homeowners hang on to their homes. Many of the homes in Sunset Terrace have undergone extensive remodeling over the years, including this one on 925 Sierra Vista Drive. I am also aware of several Sunset Terrace homes that were built by well-known architects throughout the country and a few of these homes have been featured in national home magazines. When we say "custom homes" Sunset Terrace lives up to that!

Gen Y's are also known as "echo-boomers" or "millennials". In addition to the top 17 features listed below by Bea Fields of Souther Pines, NC I thought I add a few notes I found helpful from a recent Webinar I took specifically on this topic:

• These echo-buyers are buying their first home as early as age 26
• They're busy bodies, they prefer instant messaging, email is old to them
• 97% of them have cell phones and it's how they communicate
• One in three are non-Caucasian
• Be as prepared as you can be with these buyers, they do their research
• They like doing things on their own but will take the expert when they're ready.
• As Bea indicated, they want a home close to work, near parks, the gym bars, restaurants and shopping.
• Believe it or not, they're huge on Craigslist but live on YouTube

Below is a partial guide that will help you identify the dominant features of your home and connect it with the appropriate sytle. Is your home a traditional one, cape cod, craftman, tutor?Which one's your favorite? What type of home did you grow up in?

Art Deco:Known for their flat roofs, metal window casements, and smooth stucco walls with rectangular cut-outs. They kinda have a "boat-like appearance". Art Deco homes became really popular in the 1980's.

Bungalow:Always informal in elevation and plan, bungalows are some of my favorite vacation homes. According to my research, "the bungalow" house was built abundantly across the United States between 1890 and the mid-1900s, becoming so popular that companies like Sears, Roebuck & Co. and Montgomery Ward offered mail-order houses that were pre-cut in factories then shipped out for fabrication on site by local carpenters. Pretty interesting isn't it?

French Provincial: Definitely one of the most elegant looks out there! I read that "balance and symmetry" are the ruling characteristics of this formal style. Homes are often brick with detailing in copper or slate. Defining features include a steep, high, hip roof; balcony and porch; rectangle doors set in arched openings; and double French windows with shutters, my favorite!

Ranch style:Sometimes called the California ranch style, this home in the Modern family, originated there in 1930s. Considered as one of the most popular American styles in the 1950s and 60s. Characterized by its one-story, pitched-roof construction, built-in garage, wood or brick exterior walls, picture windows, and sliding doors leading to patios. We have them all over Redding, CA.

National: The style is characterized by rectangular shapes with side gabled roofs or square layouts. The gabled-front-and-wing style pictured here is the most prevalent type with a side-gabled wing attached at a right angle to the gabled front.

Cape Cod: A 20th-century Cape Cod is square or rectangular with one or one-and-a-half stories and steeply pitched, gabled roofs. It may have dormers and shutters. The siding is usually clapboard or brick.

Craftsman:This is such a great style, very practical and it adds so much curb appeal to any street! Known or their overhanging eaves, a low-slung gabled roof, and wide front porches framed by pedestal-like tapered columns. Material often included stone, rough-hewn wood, and stucco. Many homes have wide front porches across part of the front, supported by columns.

Regency: They're symmetrical, two or three stories, and usually built in brick. Typically, they feature an octagonal window over the front door, one chimney at the side of the house, double-hung windows, and a hip roof. They've been built in the United States since the early 1800s.

Tutor:Certainly not as common in our area but I do see them in certain neighborhoods, the defining characteristics are half-timbering on bay windows and upper floors, and facades that are dominated by one or more steeply pitched cross gables. Patterned brick or stone walls are common, as are rounded doorways, multi-paned casement windows, and large stone chimneys. Aren't they unique?

Interested in buying delicious fresh, local produce? Look no further than your friendly neighborhood farmers' market! Markets offering a variety of produce can be found throughout Shasta County. Many markets also offer honey, nuts, eggs, homemade treats, tamales, and more.

Redding Farmers' Market
Saturday, April 10 - December 18th ~ 7:30 am-noon
Civic Center West Parking Lot
777 Cypress Avenue, Redding

Sunday Market at Turtle Bay Exploration Park
Sunday, June 13 - September 26th ~ 9 am-noon
Turtle Bay Parking Lot
840 Sundial Bridge Drive, Redding

Marilyn Miller Tuesday Market
Tuesday, June 15 - October 12th ~ 7:30 am-noon
Shasta Center Parking Lot
1700 Churn Creek Road, Redding

Burney Farmers' Market
Wednesday, July 14 - October 6th ~ 3-6 pm
Angelina's Restaurant Parking Lot
37143 Main Street, Burney

Bella Vista Farmers' Market
Thursday, June 24 - October 14th ~ 7:30-noon
22509 Old Alturas Road, Bella Vista
(corner of Old Alturas & Deschutes)

Anderson Farmers' Market
Thursday, June 3 - September 30th ~ 7 am-noon
Shasta District Fairgrounds
1890 Briggs Street, Anderson

MarketFest Farmers' Market
Thursday, June 17 - August 26th ~ 4:30-8:30 pm
Placer Street, between California & Oregon Streets, Redding

Additional farmers' markets in Shasta County are located in Cottonwood, Palo Cedro, and Shingletown. For more information about the Cottonwood market, contact the Cottonwood Creek Watershed Group at 530-347-6637. For more information about the Palo Cedro and Shingletown markets, operated by the Mountain Growers Association, contact market manager Cris Hillman at 530-474-3382.

Cottonwood Creek Certified Farmers' Market & Artisan Fair
Friday, May 7 - October 29th ~ 3-7 pm
Cottonwood Creek Watershed Group Office
3645 Main Street, Cottonwood

Palo Cedro Certified Farmers' Market
Wednesday, June 2 - October 27th ~ 4-6:30 pm
Little Filly's Pizza Parking Lot
22047 Palo Way #B, Palo Cedro

Mountain Certified Market
Tuesday, May 11 - October 26th ~ 4:30-6:30 pm
Shingletown Medical Center
31292 Alpine Meadows Road, Shingletown

Below is the eligibility criteria for Fannie Mae Loans (revised just this week). Borrowers who are wondering about whether or not they qualify for a H.A.F.A. Short Sale should read on:

A borrower is eligible for HAFA (Home Affordable Forelosure Alternatives) if all the following requirements have been met in the listed order:

• Borrower has qualified for a HAMP modification (Home Affordable Modification Program), based on verified income, BUT...was not offered a trial modification due to inability to meet HAMP qualifications (for example, did not pass the NPV test or meet the target monthly mortgage payment ratio) OR
• Failed to complete the trial period successfully; OR 
• Became 2 consecutive payments (31 or more days) delinquent on the modified loan; OR
• Requests a short sale or DIL (Deed-in-Lieu of).
• One exception to the HAMP eligibility criteria regarding property occupancy allows a borrower to be eligible for HAFA if evidence is provided that he/she had to relocate to a new job or was transferred by an existing employer more than 100 miles from the property AND has not purchased a one- to four-unit property within 90 days prior to the date of a HAFA Agreement.
• The borrower has been considered for all other home retention options as per Fannie Mae's loan workout hierarchy.
• Lender has completed an evaluation of the borrower's financial condition and has determined that the borrower does not have an ability to contribute meaningfully to reducing the potential loss on the mortgage loan.

I encourage you to visit Fannie Mae's HAFA Procedures, this website provides you with tons of information you can print. Another resource we have found helpful is Fannie Mae's HAFA Short-Sales Fact Sheet.

As a Certified Distressed Property Experts, we are here to aswer any of our questions!