How is Your Elkhart Indiana Home's "Pink Slip"?

When consumers purchase automobiles and they are paid in "pink slips" to indicate they own the vehicles. And when Home Buyers purchase real estate (or real property) "titles" are transferred.

But what happens if the Seller does not have a "clear title" to convey? Perhaps there was an irregularity in one of the past transactions involving the property. Suddenly, the home buyer may find himself or herself out thousands of dollars 0 and not owning any property.

Today, that does not happen - if a title company is involved. As title company's job is to search out every past transaction involving the property to ensure that clear title passed from owner to owner, and that the current seller does hold clear title to the property. Title company examiners trace the ownership of the property through its entire history. They make sure the title is clear. In the past, this was done manually, however, today computerized records make the task easier...and more reliable.

Besides uncovering title defects (called "clouds") relating to a property's ownership, the title searches also detect liens. For instance, suppose a contractor built a room addition to a home and was not fully paid for his work. If he filed a lien against the property, it would be on record with the county recorder - and should be discovered by the title examiner during the search. The title company would then notify the escrow company of the problem, and the seller would resolve the lien or risk losing the buyer.

Title insurance is the best way to fully protect against possible title defects. Lenders who provide financing require that buyers buy title insurance. This fully protects lenders up to the amount of the loan balance in the event title problems surface in the future. Some buyers assume that this policy protects them too - but this is not the case! Buyers must also buy a homeowners title insurance policy, and smart buyers will do so, to protect their own investment in the property. If a problem with title is discovered at a later day, it becomes the problem of the insurer, not the buyer. Title insurance is a one-time, low-cost expense that provides full protection for the buyer against future title claims for as long as he or she owns the property.

Here in Elkhart County, Indiana we have several Title Companies to choose from, and it is traditionally the choice of the Home Seller as to which one is chosen. Elkhart County, Indiana, Real Estate Agent Evelyn Johnston lets her Home Sellers know the local ones available to choose from. For more information about the process of buying or selling your home, Evelyn can be reached at Prudential One Realty or 574-304-7148.

Elkhart County, Indiana Do You Have A Sub-prime Adjustable Rate Mortgage?

President Bush signed the Hope Now initiative in December to slow the flow of defaulted subprime mortgage defaults. The non-profit HUD-approved Homeownership Preservation Foundation should have by now approximately 550 to 600 counselors staffing the phone to talk to concerned consumers. The number is 888-995-4673. They estimate receiving around 2500 calls a day, so expect to be on the phone for a while. The counselor will ask for information about your financial situation and make a determination, including eligibility to participate in the initiative. So before calling gather your mortgage papers, income verification and monthly expenses together so you will be prepared to answer their questions.
Home Owners are eligible if:
They are current and expect to stay current after the rate resets, but are looking to refinance.
They are current but face possible default after rate resents.
They are in default before their rate resets.
The initiative applies only to purchase-money mortgages, not home equity loans, and only to borrowers who secured financing during the height of the housing boom--Jan 1 2005 to July 31, 2007 and whose rate resets between Jan 1, 2008 and July 31, 2010. Lenders estimate there are 1.2 million borrowers eligible.
The counselors can help borrowers who don't meet eligibility for the initiative too. Income problems as a result of a job loss and unexpected expenses like a medical emergency cause people to fall behind.
Troubled borrowers who call the Hope Now number will find that their solution will depend on their situation. If you are able to stay current even with a rate reset Lenders may be able to take these borrowers through a fast-tract process into a more affordable loan.
Home owners who face default after a rate reset they may freeze the rate up to five years. To qualify they must be ineligible for refinancing, occupy the property as a primary residence and have a credit score of less than 660 that hasn't improved more than 10 percent since the loan was originated.
Real Estate Home Owners already in default - a loss-mitigation strategy, such as a short sale or deed in lieu of foreclosure, my be the solution. Under the mortgage debt forgiveness law signed by President Bush, borrowers who receive debt forgiveness as part of a loan workout over the next three years won't have to pay federal tax on the forgiven amount. Those who don't call in time may not be able to avoid foreclosure. If you are in default now, please call Real Estate Agent Evelyn Johnston, Short Sale Specialist to discuss your options at 574-304-7148 or email evelyn@evelynjohnston.com.

Top 10 Reasons To Hire A Real Estate Agent

With so much information readily available online, clients often ask me, "why should we hire a real estate agent" They wonder, and rightfully so, if they couldn't buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a real estate agent. Some do ok, many don't. So, if you've wondered the same thing, here are 10 reasons why you might want to consider hiring a professional real estate agent.

• Education and Training-You don't need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.
• Agents are Buffers-Agents take the spam out of your property showings and visits. If you're a buyer of new homes, your agent will whip out their sword and keep the builder's agents at bay, preventing them from biting or nipping at your heels. If you
• re a seller, your agent will filter all those phone calls that lead to nowhere from lookie loo's and try to induce serious buyers to immediately write an offer.
• Neighborhood Knowledge-Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction to where you can find more data on schools, crime or demographics. For example, you may know a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold for $285,000 after 65 days on the market and after falling twice out of escrow.
• Price Guidance-Contrary to what some people believe, agents do not select prices for buyers or sellers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.
• Market Conditions Information-Real Estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average square foot cost of similar homes, median and average sales prices, average days on the market and ratios of list to sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.
• Professional Networking-Real Estate Agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however give you a list of references with whom they have worked and provide background information to help you make a wise selection.
• Negotiation Skills and Confidentiality-Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction, and because they are skilled. Its part of their job description. Good agents are not messengers, delivering buyers offers to sellers and vica versa. They are professionals who are trained to present their clients case in the best light and agree to hold client information from competing interests.
• Handling volumes of Paperwork-One page deposit receipts were prevalent in the early 1970's Today's purchase agreements are around 10 pages or more. That does not include the federal and state mandated disclosures nor disclosures dictated by local custom. Most real estate files average from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states lawyers handle the disclosures, thank goodness!
• Answer Questions After Closing-Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps, or transfer tax can fall months behind and mix up invoices but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don't leave you in the dust to fend for yourself.
• Develop Relationships for future business-The basis for an agents success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphases gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and stay in touch.

How To Find The Right Home

Just because you may feel restricted by price ranges-especially if this is your first or second home purchase-don't let anyone tell you that you can't afford to be choosey when looking for a home to buy! You are unique. You have desires and needs, hopes and dreams for your new home that are different from your parents, friends or coworkers, okay? Your local Real Estate Agent will be a good source to help you find homes for you to look into. So lets get busy defining these homebuying parameters and writing them down.

Location and Neighborhood

Suburbs or Country

• 
  
  Pros: Generally less expensive. Often newer. Tract homes and conforming. More home for the money.


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  Cons: More time in traffic if driving to town for work. Further away from entertainment options cities have to offer.

Urban

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  Pros: Closer to many employers, walking distance to theatres, restautants, schools. Many period homes offer more distinctiveness in styles.


• 
  
  Cons: Often nosier, higher crime rates, more expensive.

Busy Streets

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  Pros: Often homes on streets with more traffic are thousands of dollars cheaper. If noise doesn't bother you, don't pass up homes on busy streets. Drive by at different times of the day/week to ascertain noise levels.


• 
  
  Cons: These types of homes will always sell for less than others in the same area. If bedrooms are located near the front of the home, sleep may be disturbed.

Cul de Sac

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  Pros: Number One choice of buyers with children.


• 
  
  Cons: Less privacy, neighbors know more about you.

Corner Lots

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  Pros: Often larger lots, fewer neighbors, more visability.


• 
  
  Cons: More traffic noise. More vulnerable to vehicles jumping the curb. Kids might tresspass at the corner. More sidewalk to shovel in Winter.

Single Family

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  Pros: Good appreciation. Opportunity for gardens. More privacy. Quieter.


• 
  
  Cons: More expensive than our next catagory. More maintenance.

Condos, Townhouses, Cooperatives

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  Pros: Less expensive than comparable single family homes. Generally newer so fewer repairs. Lock-n-Go lifestyle. No yard or exterior maintenance.


• 
  
  Cons: Less privacy. Noiser, Common walks and/or floors and ceilings. Sometimes no private yard or balcony.

Number of Stories

Single Story

• 
  
  Pros: Easy wheelchair access. Some medical conditions such as bad knees make it hard for certain individuals to climb stairs. Easier to clean.


• 
  
  Cons: Can be noiser if stereos or TV's are located on same floor as bedrooms. Some people feel safety is compromised if bedrooms are at ground level. More of the lot is absorbed by living quarters.

More Than One Story

• 
  
  Pros: More living space on same foundation than a ranch home. Less noise if entertaining on a lower level while other family members sleep upstairs.


• 
  
  Cons: More trips up and down the stairs to carry stuff to bedrooms. If laundry rooms are on the second floor, washer leaks are major. Might need dual vaccuum cleaners. It is difficult to maintain consistant temperatures on each level without dual heating and cooling units.

Split Levels

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  Pros: Often less expensive if purchased with lower level unfinished. Higher ceilings are appealing. Downstairs family room seperates noise levels from upstairs. More square footage on same size lots as ranch homes.


• 
  
  Cons: Less storage space. Hassle to take trash downstairs and carry groceries upstairs or vice versa. Kitchens tend to be smaller.

Interior Specifications

Number of Bedrooms

• 
  
  Pros: Common minimum requested configurations are 3 bedrooms. Newer parents prefer bedrooms on one level.


• 
  
  Cons: 2 bedrooms appeal primarily to first time home buyers, singles or seniors. However, don't discount a two bedroom if an extra den will satisfy your space requirements.

Number of Bathrooms

• 
  
  Pros: More than one bathroom is preferred by most people. One bathroom homes are generally less expensive.


• 
  
  Cons: Don't pass up a one bath home if there is room to add a second bath. Sometimes it costs less to put in an extra bath than it doess to buy a two bath house.

Square Footage

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  Pros: Larger spaces offer more room and cost less per square foot than smaller spaces.


• 
  
  Cons: Don't be mis-lead as lay-out is more important than actual square footage. Sometimes well designed smaller spaces appear larger.

Bonus Room

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  Pros: Extra space for media rooms, art studios, children's playrooms, gyms, den/study.


• 
  
  Cons: More expensive.

Garages

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  Pros: Cheaper to build. Convenient if raining or snowing.


• 
  
  Cons: Higher noise levels inside the home from cars. Some people feel they are an eye sore. If the garage door to the house self-locks, you could get locked out at an inopportune time.

Detached

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  Pros: Can be tucked away from sight lines. Quieter.


• 
  
  Cons: More expensive to build. Farther to walk or carry things in god or bad weather.

Additional Considerations

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  School Districts


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  Special Amenities i.e. fireplaces, pools, spas


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  Condition of Plumbing or electrical


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  Condition of heating and cooling units


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  Available Utilities i.e. cable, DSL or satellite


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  Sewer, cesspool or septic connections


• 
  
  Fixers-If you're handy with tools, you might save a lot of money if you consider homes that need minor improvements, fresh paint or new carpeting.

Nest posting will be about how long it should take for you to find the home that is right for you!

Talk to you again soon!

Evelyn Johnston

Prudential One Realty

Real Estate Agent

evelyn@evelynjohnston.com

574-304-7148

Congratulations on Your Marriage!

This is the beginning of a very special time in your life, just married! The Wedding is over and now it is time to get on with the Happily Ever After! Where do you begin? Most Newlyweds spend more money in the first year of marriage than settled marrieds spend in five years, according to a recent survey. There is furniture to buy, kitchen staples, automobiles, sheets and towels and a home to put it all in. That home is my specialty! I am a Real Estate Agent and I help take the stress out of the process! Call me at 574-304-7148 to talk about your options as a first time home buyer and the types of mortgages available just for you!