Archives

July 2007

Thinking of taking that laptop on your vacation?

“As computers become more prevalent, and multi-functional, more and more families are bringing laptops on their vacations,” said Michael Wexler, co-founder of HiWired. “From watching movies, updating playlists, to keeping in touch with the office, today’s families are connected - even on the road. These tips work for families and road warriors alike.”

1.) Pack Wisely. Don’t forget the hardware you might need. Your laptop isn’t going to be very useful without a power cord. Be sure to pack chargers, external CD/DVD drives, optical travel mouse, and a short Ethernet cable. And, a back-up battery, which is especially critical for long flights or road trips. And, keeping them all in one bag or designated location is just good common sense.
2.) Access More Than Movies. If you’re lugging your laptop on a family trip to provide entertainment, be sure you can get online. Movies and static content only take you so far, so if your laptop doesn’t have a wireless card, get one before you travel. They are cheap, accessible and open up access to email and Internet – from any connected location.
3.) Be Wary of Strangers: The Internet is an amazing tool. When researching your trip, surfing in the airport or connecting from your lake-side cottage, access to the Internet and email is a boon. Still, be sure your connection is secure before you do online banking, or conduct any other sensitive transactions. A secure network is paramount – so ask before you sign in.
4.) Lock It Up: Password-protect key files or sensitive information on your laptop so that if your system is stolen, thieves will have a hard time accessing these files. This goes for PDAs and smartphones as well.
5.) Back It Up: Studies show that nearly 40 percent of people will lose something important from their PC each year. Back up before you go. Either do it yourself, or work with a service to back up all important files and applications. Then you’ll be able to travel worry-free.
6.) Don’t Overlook the Obvious: Make sure your laptop and bag is clearly marked with your information and a return address. Look-alike laptops have caused confusion in airport security lines more than once.

12:15 PM - Jul. 31, 2007 - comments {0} - post comment

Which is your favorite movie car?

“When we came up with our list of Top 10 Movie Cars last summer, we had no idea our readers would be so passionate about their favorite car films,” said Patrick Olsen, managing editor of Cars.com. “With ‘Transformers’ arriving on the big screen, we revisited our list — listening to last year’s reader feedback — and determined once again which cars deserved to make the top 10. Some cars were able to hold on to their spots, while others were shuffled to make room for more-worthy contenders. With ‘Speed
Racer’ hitting the big screen next year, expect another round of evaluation.”

No. 10: 2003 Mini Cooper S, “The Italian Job”
     2006 rank: 10
Drivetrain: 163-horsepower, supercharged 1.6-liter four-cylinder engine with six-speed manual transmission; front-wheel drive
Notable Features: 200 pounds lighter than stock Cooper S; painted red, white or blue
 The Mini Cooper holds the No. 10 spot on the list for the second year in a row likely due to its slender physique, which allows the vehicle to escape captors on congested streets, parks and subway tunnels.

Computer-rigged signals aid the getaway, stopping cross traffic at red lights. Larger cars could not have achieved the maneuverability demonstrated by the Mini as it weaves through traffic, drives down stairs and speeds along sidewalks.

No. 9: 1959 Cadillac Ambulance, “Ghostbusters”
     2006 rank: 7
Drivetrain: 325-hp, 6.4-liter V-8 with two-speed automatic transmission; rear-wheel drive    
      Notable Features: Tailfins, flashing lights, sirens, attached ladder
     The Ghostbusters wouldn’t go far without a sizable vehicle to transport
      the team and their ghost-capturing gear around New York City. Though it
      plays a relatively small part in its film, the Ectomobile is the finest
      medical movie car to date. From its distinctive siren wail to its red
      tailfins, strobe lights and roof gear, this car is truly unique.

No. 8: 1974 Dodge Monaco, “The Blues Brothers”
     2006 rank: 3
Drivetrain: 275-hp, 7.1-liter V-8 with three-speed automatic transmission; rear-wheel drive
     Notable Features: Cop motor, cop tires, cop suspension, cop shocks
     You usually don’t come out ahead when swapping a Caddy for a Dodge –
      unless the Dodge has a 440-cubic-inch V-8. The Bluesmobile would be our
      pick if we had to outrun the better half of Illinois police, not to mention
      a neo-Nazi outfit and a country-and-western band. The car may fall apart in
      the end, but it performed well on this “mission from God.”

No. 7: 1932 Ford coupe, “American Graffiti”
     2006 rank: New for 2007
      Drivetrain: 60-hp, 3.6-liter V-8 with three-speed manual transmission
Notable Features: Bright yellow paint job bound to be noticed by bored teens in Modesto, Calif.
Nicknamed the Deuce, this five-window ‘32 Ford coupe is the quintessential American hot rod. As built, it came with the engine mentioned above, but in the movie it’s clear the coupe has been souped up. It was the car’s impressive performance in the drag race at the end that lodged this hot rod into the hearts of American teens for a decade.

No. 6: 1976 AMC Pacer, “Wayne’s World”
     2006 rank: New for 2007
Drivetrain: 100-hp inline-six with three-speed automatic transmission; rear-wheel drive
Notable Features: Flame decal, licorice dispenser, “Bohemian Rhapsody” on continuous playback   
      Wayne and Garth’s baby blue Mirth Mobile may not have inspired fans to
purchase one of their own, but its special features made the car stand out from any other AMC Pacer on the road.   
     
No. 5: 1968 Ford Mustang GT 390, “Bullitt”
      2006 rank: 6
Drivetrain: 325-hp, 6.4-liter V-8 with four-speed manual transmission; rear-wheel drive
      Notable Features: Fastback roof, higher engine note than the Charger
The seven-minute chase scene between Bullitt’s green Mustang GT 390 and a hit man’s 1968 Dodge Charger is among the best of its kind. Close-up shots of Steve MQueen (Bullitt) as he maneuvers his vehicle through the streets of San Francisco add realism to the scene and intensify the chase.

No. 4: 1964 Aston Martin DB5, “Goldfinger”
      2006 rank: 4
Drivetrain: 282-hp, 4.0-liter six-cylinder with four-speed manual transmission; rear-wheel drive
Notable Features: Bulletproof glass, machine guns, incessantly beeping radar screen. Bond cars are known to be top-notch — the list includes Aston Martins, Bentleys and Lotuses — but voters agreed that the Aston Martin DB5 driven by Sean Connery in “Goldfinger” belonged at the top of the list. Not only is it appealing to the eye, it outruns and out-gadgets all of its competitors.

No. 3: 1961 Ferrari 250 GT, “Ferris Bueller’s Day Off”
      2006 rank: 2
Drivetrain: 280-hp, 3.0-liter V-12 with four-speed manual transmission; rear-wheel drive
Notable Features: Cherry-red exterior, wire grille, Cameron-sized tonneau compartment. This red Ferrari convertible is probably responsible for thousands of teens cutting class to joyride in their father’s car. The kit car stands out with its sleek exterior and low mileage. Though borrowing this car was a source of controversy between Ferris and Cameron, they both enjoyed driving in style through the streets of Chicago.

No. 2: 1977 Pontiac Trans Am, “Smokey and the Bandit”
      2006 rank: New for 2007
      Drivetrain: 200-hp, 6.6-liter V-8 with three-speed automatic
      Notable Features: T-top, CB radio, runaway bride in the passenger seat
The mission seemed simple enough: Get a truckload of bootleg beer from Texarkana, Texas, to Atlanta while Bo “Bandit” Darville runs interference in his Trans Am. The combination of comical car chases and Burt Reynolds’  mustache sold more than a few black and gold versions of Bandit’s car.    

No. 1: 1981 DeLorean DMC-12, “Back to the Future”
      2006 rank: 1
Drivetrain: 1.21-gigawatt nuclear/electric hybrid with five-speed manual transmission; rear-wheel drive
      Notable Features: Gull-wing doors, 16-port twin exhaust boxes, flux capacitor
Doc Brown’s DeLorean holds the first-place spot on this list for the second year in a row. The car achieves time travel at 88 mph thanks to a plutonium-powered nuclear reactor and onboard flux capacitor. By the end of the first movie, it runs solely on trash — and it can fly. That’s still futuristic two decades after the movie debuted.    

Honorable Mentions
    — 1958 Plymouth Fury, “Christine”
    — 1973 Ford Falcon, “The Road Warrior”
    — 1975 Lotus Esprit, “The Spy Who Loved Me”

Off the List from 2006
    — 1973 Ford Falcon, “The Road Warrior”
    — 1958 Plymouth Fury, “Christine”
    — Batmobile Tumbler, “Batman Begins”

12:23 PM - Jul. 29, 2007 - comments {1} - post comment

What are Mom and Dad going to do next?

Remember the days - back when Mom and Dad would constantly nag to bring a sweater, clean your plate, check in with a phone call when out late? Most of us couldn't wait to grow up and get out on our own - but before you know it, your role with your parents often reverses as they get older. Especially if you don't live in the same immediate vicinity as your parents, suddenly you find that YOU are the one worried when you don't get that expected phone call from them. Ironic, huh?

But even if you are watching out for a parent from a distance - there are answers.

First, listen carefully during even casual conversations. If a parent mentions that the house is getting harder to maintain or the stairs are too steep to climb, use this opportunity to start a conversation about alternatives such as downsizing, or perhaps having help come in once or twice a week. This may give your parent the independence that they wish to maintain, but also helps provide you both with peace of mind. The National Association of Professional Geriatric Care Managers offers this website: www.FindaCareManager.org to help find assistance in your parents' home area.

Next, try to meet their neighbors and have their contact information handy. If you are not able to reach them, a neighbor may be able to make a quick visit to their home to make sure everything is OK. Additionally, check out the site www.eldercare.gov, which provides information about local services and resources that can help an older person live independently in their own community.

Consider giving your parent the gift of technology with the Samsung Jitterbug phone. The phone is equipped with a large easy to read numerical key pad, a dial tone (unlike a regular cell phone), allows for numbers to be programmed and can be used by an individual with a hearing aid.

Sadly, identity thieves prey on the aging population. Help parents automate their finances by setting up direct deposit for their social security, pension or retirement and establish automatic payments for their monthly recurring expenses. That way, should a parent get a random phone call from a thief; they will be less likely to volunteer personal information knowing that the account is automatically paid. Also, be sure to remove your parent's phone number from telemarketers by visiting www.donotcall.gov, and help them prevent identity theft by "opting out" of pre-approved credit offers, at www.optoutprescreen.com

And even though it may be difficult to have "the talk" - discuss the idea of meeting with an Estate Planner to make sure that everything is in order, exactly as they'd want it to be - including a will, trust, power of attorney (both general and medical). Be sure to find out where these documents are kept and confirm that all documents including insurance policies, social security cards, lists of medications, and important contact information for lawyers, attorneys, and doctors are all filed in one secure location.

12:10 PM - Jul. 27, 2007 - comments {0} - post comment

Keeping good credit is easy

3:51 PM - Jul. 25, 2007 - comments {0} - post comment

Thinking DIY - don't get injured

1. Wear protective eyewear and gear
The first step in any home improvement project is to deck yourself out in proper safety gear, beginning with eyewear, said Tom Kraeutler, co-host of the Money Pit, a syndicated radio show in New York.  Designs have become hipper as more women take up home-repair work, he said. “Safety glasses have come a long way from the big old plastic ones we used to wear in biology class.”

Nails can glance or pop out when least expected, especially while hammering cross-grain wood, said JoAnne Liebeler, co-author of “Do It Herself: Everything You Need to Know to Fix, Maintain, and Improve Your Home,” in Minneapolis.  Wearing safety glasses for any kind of saw work or hammering is essential, she said. “It seems like overkill but it isn’t.”  It’s also important to wear work gloves, knee pads and back braces for heavy work, Liebeler said. Make sure clothes fit well to avoid problems around power tools, and keep earplugs stocked to protect hearing in the event of prolonged noise.

For projects that involve sanding or generating airborne contaminants, keep a dust mask or the appropriate respirator on hand, depending on the toxin, Kraeutler said.

2. Keep the work site organized to prevent tripping and falls
Work sites tend to be chaotic enough without adding negligent messiness to the list of potential injury-makers, Kraeutler said.

Stack lumber and other materials on the ground rather than in a corner or against a wall, he said. “Stop to clean up so you’re not working in an unsafe, slippery environment.”  Invest in cordless power tools whenever possible to reduce the risk of tripping, Liebeler said.

3. Ask for training on tools when you rent or buy them

With the ability to rent tools such as floor sanders, tile cutters and jack hammers for short-term use, it’s critical to ask for training before heading out on your own. “Know what to do in an emergency,” Kraeutler said. “The less experience you have, the higher the risk is you’re going to get hurt.”

4. Make sure ladders are anchored securely and replace any that appear damaged

There were 198,000 ladder injuries that resulted in emergency room visits last year, according to the Consumer Product Safety Commission.

“Anytime you use a ladder triple-check that it is firmly footed,” Liebeler said.  Old-fashioned wooden ladders eventually weather and may need to be replaced with a newer-generation aluminum or fiberglass one.  “You can pick up a good eight-foot ladder for 60 bucks,” Liebeler said. “It’s just a stronger material and better construction. If you’ve got one of the old crusty ones and it’s a little rickety and raggedy, get rid of it.”

5. Equip nail guns with sequential-trip triggers

No longer the exclusive domain of professionals, nail guns have become more available on the general market in the last 15 years. Consumer nail-gun injuries treated in U.S. emergency departments have ballooned since 1991, according to researchers at Duke University Medical Center and the National Institute for Occupational Safety and Health.
The number of amateur carpenters treated each year for nail-gun injuries in ERs more than tripled between 1991 and 2005, increasing to about 14,800 per year. But the number of injuries suffered by professionals has remained constant at about 18,000, said Hester Lipscomb, author of the report and an associate professor of occupational and environmental medicine at Duke in Durham, N.C. Most of the injured were treated for puncture wounds and released.

The tool’s trigger mechanism makes a big difference, Lipscomb said. Replacing the more common contact-trip trigger, which shoots at anytime, with the sequential-trip trigger makes it harder to get hurt. “The person using it has to essentially decide where they want to put the nail, put the nose piece there and then pull the trigger,” she said, noting that consumers need to ask for the right kind of trigger or a conversion kit if they have the riskier type. “You really want this design that has the safer trigger mechanism that prevents an unintentional firing.”

6. Keep combustible, solvent-soaked rags away from heat sources.

Consumers often clean tools and paint brushes with rags doused with solvents such as turpentine, Liebeler said. But tossing the soiled rags in an empty jar or in a utility room can be a fire hazard. “The best thing to do is to hang them outside on a clothesline and then wash them in a separate load,” she said. “Don’t store any of those fumed products near a furnace, heater or water heater. A lot of people tend to store junk in the utility room, but it’s not a good idea even if it’s capped and sealed.”

7. Quit before you’re exhausted.

The point of fatigue is when even the most experienced do-it-yourselfers are exposed to a high risk of injury, Liebeler and Kraeutler agreed.

3:34 PM - Jul. 23, 2007 - comments {0} - post comment

Be prepared - a Buyer's motto

Phil Immel, otherwise know as the Real Estate Guru, gives buyers ways to approach a home purchase that will increase their chances of finding exactly the home they want - and can afford.

If you were selling a home and received two offers, which one would you take?  Most sellers would opt for the offer with the strongest pre-qualification letter from a reputable lender. Unknown to most however, is that pre-qualification letters are not worth the paper they are written on.

Know Thy Seller

Understanding what a savvy home seller (and their agent) will be subtly looking for during a negotiation puts you in the power position.  Wary home sellers will be looking to analyze several key items on your lender letter:

1.  FICO score
2.  Proof of down payment and closing costs – liquid  (they’ll be looking to see you that you really don’t have a house that must be sold in order to have funds to close)
3.  Sellers will look for a clause from the lender that says approved, subject to appraisal only.  This shows that the buyer has taken the time to get vetted by his lender and is a serious candidate backed by a serious lender.  A savvy seller will not accept an offer that does not have this key statement.

Now, put your buyer hat on. You’ve decided to buy a house. Most buyers get excited and start driving around and looking at open houses – followed by emotion-laden calls to an agent regarding properties they are interested in. WRONG!  If you go out to a fancy dinner, you probably know the limit on your credit card.  Same principle applies here.  Meet with a reputable lender … first.  Establish a price range you can afford …. and only then start shopping.  It is embarrassing when your credit card doesn’t go through after a fine meal; likewise, imagine finding out (after the fact) that you really can’t afford your dream home.  Another tip, don’t tell your friends too early. You don’t want undue influence during the business transaction and negotiation phase to affect your judgment.  Also, have your act together before you make an offer. Picture it this way – by following these simple protocols, you make yourself almost as attractive and secure as an all cash offer!

The Power of Three

Don’t let your sparkling lender letter undermine your negotiations. Have your lender prepare two or three appraisal letters.  Why?  Let’s say you fall in love with a home listed at $750,000. You and your Realtor think the market is soft and do not want to overpay. 

After review of comparable sales in the neighborhood you are willing to pay up to $725,000 – no more.  You decide to offer $700,000.  If your pre-approval letter shows you can afford up to $750,000, you just negotiated against yourself.  Why?  An astute seller and listing agent will know you can afford more.  Residential Real Estate Valuation is 20-percent emotion, 80-percent logical.  Have the lender write your letter to match your offer – not a penny more.  Also, have them write one for $725,000 to use in a counter-offer.  Tailor the numbers to your deal and you will get the best price. 

Remember, educate yourself, think like a seller, and you’ll buy at the best price possible for your new home.

3:28 PM - Jul. 21, 2007 - comments {0} - post comment

Spend a little, sell your house

Experts warn that there’s a fine line when it comes to how much money sellers should spend on their homes to prepare them for sale. Do nothing and sellers might have a hard time attracting buyers. Spend too much and sellers won’t recoup their expenses.

How much is too much?

Statistics show that the best bang for your remodeling buck comes from bathroom and kitchen renovations. According to a 2006 survey by Remodeling Magazine, a bathroom remodel that costs about $13,000 could get the seller about an extra $11,000 in the house — recouping about 85%.

Other renovations may not allow the seller to recoup as much. For example, according to the study, the addition of a sunroom to the house would only recoup about 66% of the additional cost.

Instead of the high-priced renovations, there are a variety of low-cost options to help spruce up a home.

Add a new coat of paint inside and outside if needed. A simple paint job can do worlds of good to improve the look of your house, Begin said. She suggests more neutral colors.

– Spruce up the kitchen and bathroom. Instead of high-cost remodeling, simple changes in the kitchen and bathroom can go a long way. Install modern-looking faucets and new handles and knobs on cabinets and drawers.

– Improve the “curb appeal” of your home by making the front look as welcoming as possible. Make sure the lawn looks great, plant a few flowers and replace anything unsightly such as an old mailbox. Make the front door look welcoming, perhaps with an updated doorknob.

– Complete all of those little problems that you have probably been living with for years. All of those little idiosyncrasies in a house like drawers that stick or banisters that are loose can add up for potential buyers.

– De-clutter the house. Excess furniture and knick-knacks often can make a home feel smaller than it really is. Before selling, you probably also want to take down a lot of personal items so buyers can envision their own lives in the home.

–  Make sure the carpets look great. Rent a steam cleaner or hire a professional, but make sure carpets look as if they are in tip-top shape when the seller comes by. If worst comes to worse, they may need to be replaced.

A lot of these low-cost changes can go a long way when considering selling a home. Still, don’t over-do it. Sellers should probably save much of the time and effort of renovations on a home they plan to live in for awhile, not on a place they plan on getting rid of.

Quick tips to make your home appeal to buyers

– Add updated faucets and kitchen knobs in your bathroom and kitchen. These simple things can change the whole look of the room.

– Put flowers in front of the house, especially near the front door. Add a pot of bright flowers at the doorstep. The color red tends to be appealing to buyers.

–Bake fresh bread or chocolate chip cookies before you have an open house. This may sound crazy but the smell gives the house a homey-feeling that appeals to buyers.

How much will you get back for your remodeling investment?

Job cost–Resale value % cost recouped

Basement remodel  $56,724  $44,685  78.8%
Bathroom remodel  $12,918  $10,970  84.9%
Deck addition   $14,728  $11,307  76.8%
Major Kitchen Remodel $54,241  $43,603  80.4%
Minor Kitchen Remodel $17,928  $15,278  85.2%
Sunroom Addition $49,551  $32,854  66.3%
–Reflects national averages

3:12 PM - Jul. 19, 2007 - comments {2} - post comment

Check out those miles

Summer travel season is here...and many would-be travelers have saved for months - or even years - to have enough airline frequent flyer miles to use towards a special summer vacation. But wouldn't it be awful if you called to book that tropical vacation with the full intention to cash-in on the airline miles, only to find out that those hard earned miles had expired? This is becoming more and more common, as airline carriers are cutting back travel timeframes and making it harder to cash in.

So what can you do to get the most out of your hard-earned miles?

Keep them active with a purchase - Use a few of your existing frequent flyer miles to make a purchase for something other than airfare. Want to get your hands on an iPod, send flowers to someone, get a gift card...or just indulge in a little online retail therapy? Log on to your airlines mileage website. Even a purchase as small as a newspaper or magazine subscription - using miles - will count as activity and keep your frequent flyer miles from expiring.

Complete a survey - Take a few minutes and complete a survey on www.e-miles.com. Not only will this help keep your miles active, you might even earn a few extra miles too!

Get a new credit card - Consider an airline-affiliated credit card. Use this card to charge everything from gas to clothing - this will help rack up and earn airline miles. Although many card companies cap the amount of miles you can earn each year, as long as the credit account is being used, the miles will never expire.

2:52 PM - Jul. 17, 2007 - comments {1} - post comment

Home prices falling across the country - except here

Home prices in 10 major U.S. cities dropped at the fastest pace in 16 years during the 12 months ending in April, according to Standard & Poor’s Case-Shiller home price index released recently.  Home prices in the 10 cities fell 2.7% on a year-over-year basis, the largest decline since September 1991. Meanwhile, prices in 20 cities dropped a record 2.1% year over year.

The 10-city index began in 1987. The more comprehensive 20-city index goes back to 2001. Price appreciation has slowed for 17 consecutive months. Nationally, prices have doubled since 2000.

Fourteen of the 20 cities showed falling prices in the past year, led by Detroit (down 9.3%), San Diego (down 6.7%) and Washington (down 5.7%). Seattle had the largest price gains over the past year at 9.6%, while prices are up 7% in Charlotte, North Carolina, and 6.4% in Portland, Oregon.

Miami’s appreciation turned negative in April for the first time in this cycle; prices in Miami, which had risen 25% in the year through April 2006, are now down 1% in the past year.

“No region is immune to weakening price returns,” said Robert Shiller, chief economist for MacroMarkets LLC and the co-creator of the index. Even in regions such as the Pacific Northwest or the Southeast, where prices are still rising, the gains have been slowing.

A glimmer of hope shone in a few cities - Atlanta, Boston, Dallas and Denver - as they recorded price increases and stronger annual rates of return. “A few more months of data will reveal if it is a seasonal issue or the beginnings of a recovery in these markets,” S&P said in a release.

Falling home prices have squeezed many borrowers who have been able to extract equity from their homes or refinance to avoid a sudden increase in mortgage payments as the interest rate on adjustable-rate loans resets.  As a result of falling prices, foreclosures are rising nationally, especially in regions with a weak economy, such as the Midwest, and in Sun Belt areas deemed bubble regions, such as Southern California, Florida, Nevada and Arizona.

The Case-Shiller index is considered a superior gauge of home prices compared to the median sales-price data released by the Commerce Department or the National Association of Realtors, because it tracks multiple sales on the same property and is therefore not influenced by a different mix of homes sold in a period.

Unlike the quarterly price index produced by the Office of Federal Housing Enterprise Oversight, the Case-Shiller index does not include refinancings. And, also unlike the OFHEO index, it includes homes with mortgages larger than the conforming limit of $417,000.  However, the Case-Shiller index is restricted to 20 cities.  The OFHEO index is up 4.3% in the past year, while the purchase-only OFHEO index is up 3%.

Case-Shiller Details:

Atlanta: up 0.8% in April, up 2.1% year-on-year
Boston: up 0.6% in April, down 4.5% year-on-year
Charlotte: up 1.2% in April, up 7% year-on-year
Chicago: down 0.7% in April, up 0.2% year-on-year
Cleveland: down 0.2% in April, down 2.8% year-on-year
Dallas: up 1.3% in April, up 2% year-on-year
Denver: up 0.5% in April, down 1.8% year-on-year
Detroit: down 2.5% in April, down 9.3% year-on-year
Las Vegas: down 0.8% in April, down 3% year-on-year
Los Angeles: down 0.5% in April, down 2.6% year-on-year
Miami: down 1.2% in April, down 1% year-on-year
Minneapolis: down 0.5% in April, down 2.9% year-on-year
New York: down 0.2% in April, down 1.5% year-on-year
Phoenix: down 0.8% in April, down 4.5% year-on-year
Portland: up 1% in April, up 6.4% year-on-year
San Diego: down 0.3% in April, down 6.7% year-on-year
San Francisco: up 0.2% in April, down 2.8% year-on-year
Seattle: up 1.3% in April, up 9.6% year-on-year
Tampa: down 1.1% in April, down 5% year-on-year
Washington: down 0.5% in April, down 5.7% year-on-year
10-city composite: down 0.3% in April, down 2.7% year-on-year
20-city composite: down 0.2% in April, down 2.1% year-on-year

6:13 PM - Jul. 15, 2007 - comments {0} - post comment

Maybe there aren't as many foreclosures as we think

“But don’t be fooled by the numbers. The overall economy is sound, and markets will turn around,” says Alexis McGee, president of ForeclosureS.com and author of the upcoming book, “The Foreclosures.com Guide to Investing: Making Huge Profits Investing in Pre-Foreclosures Without Selling Your Soul” (John Wiley, September 2007).  “Even the Mortgage Bankers Association’s just-released Mortgage Delinquency Survey reported that except for several key states, overall mortgage delinquency rates dropped in first quarter 2007 over fourth quarter 2006 numbers,” says McGee.

“In fact, MBA’s chief economist Doug Duncan, in releasing the survey, pointed out that ‘the percentage of loans in foreclosure would be well below the average of the last ten years were it not for Ohio, Michigan, and Indiana, and the rate of foreclosures started nationwide would have fallen were it not for the big jumps in California, Florida, Nevada, and Arizona,” adds McGee, also president of ForeclosureS.com the California-based real estate investment advisory firm and publisher of foreclosure and property information.  On a per capita basis, Nevada has been hardest hit state so far this year for all stages in the foreclosure process, according to ForeclosureS.com.

The stages of the foreclosure process include:

- Stage 1 Pre-foreclosure filing: The initial notice that the property is now in foreclosure for an unpaid secured lien or loan.
- Stage 2 Auction filing: The notice that the public court house auction sale date has been set because the unpaid secured lien or loan remains unpaid. Some states, like Arizona, combine Stage 1 & 2 into one notice, and are reported Stage 2 only.
- Stage 3 REO (real-estate/bank owned) filing: The notice that the foreclosure has gone to auction and the property has transferred to the winning bidder or reverted to the lender. The home owner has lost their house to foreclosure.

Other states feeling the worst of the foreclosure pinch include Florida, Michigan, Ohio, Colorado, Texas, Georgia, Arkansas, and much of the rest of nation’s Southwest region, according to the numbers and analysis of the more than 2.5 million property listings available at ForeclosureS.com.

“Looking at just pre-foreclosures, before a homeowner actually loses his or her home, nationally 4.2 homeowners out of every 1,000 households faced a pre-foreclosure filing so far this year. That’s double the number last year at this time,” says McGee. “And those numbers will go even higher before they come down.”

Among the reasons, approximately $567 billion of subprime adjustable rate mortgages (ARMs) are scheduled for rate reset this year. That’s according to John M. Reich, head of the U.S. Office of Thrift Supervision (statement to the U.S. House Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services, March 27, 2007). Those rate resets mean significantly higher monthly mortgage payments for those homeowners, too.

“The end result will be less mortgage affordability for many and more foreclosures,” adds McGee.

The MBA’s recent survey also reported that new foreclosures hit a new record in first quarter 2007. But Duncan, also tempered those numbers.

“…Most of the increase was due to only four states, California, Florida, Nevada, and Arizona. Without these four states, foreclosure stats would have declined. Twenty-four states saw a decline in foreclosure starts while the rest of the states saw negligible increases…” added Duncan.

“As I’ve said many times,” adds McGee, “it’s about people buying homes they really can’t afford with creative financing and banking on rapid price appreciation. Now that prices have deflated and interest rates reset, those homeowners are left with little alternative but foreclosure.”

Looking at actual filing numbers from ForeclosureS.com, year-to-date, there have been a total of 343,745 pre-foreclosure and auction filings (both prior to a homeowner actually losing his or her home), and 185,369 REO filings (indicative of a property lost to foreclosure). That compares with 178,492 pre-foreclosure and auction filings, and 126,889 REO filings for the same period a year ago. Those raw foreclosure filing numbers combined are up 92.6% and 46% respectively year over year.  However, keep in mind when analyzing the number of filings only, that the same property can account for multiple filings-one at each stage in the foreclosure process. That is why our per-capita analysis is so much more accurate.

“I truly feel for these homeowners facing foreclosure,” says McGee. “Their numbers are a cause for concern, but not the hysteria some would have us believe amid the recent financial markets shakeout. Our nation’s housing market has not and will not collapse long term because of this increase in foreclosures, just like it did not collapse in the mid-1990’s during our last real estate correction. Literally millions of other homeowners in the United States still meet their mortgage obligations every month. Approximately 75.6 million people in the United States-69% of the population–own the home they live in, according to Census data.

“The reality is that foreclosures account for a small portion of the $10 trillion in total U.S. mortgage debt, and not everyone with a subprime mortgage (those issued to people with poor or no credit) defaults on their loan,” says McGee.

Fed Chairman Ben Bernanke agrees. In a speech last month at a conference by the Federal Reserve Bank of Chicago (Annual Conference on Bank Structure and Competition, Chicago, Illinois, May 17) Bernanke also cautioned of further increases in delinquencies and foreclosures this year and next as ARM interest rates and payments reset.

But, Bernanke added, “…we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well.”

The lesson in all the numbers and hype around foreclosure numbers is that consumers must learn to make more informed mortgage decisions, says McGee.  “That goes for before a home purchase–if you can’t afford the full monthly payment after a rate reset, don’t buy the home. And after you buy, too, if for some reason you run into financial difficulty that puts your mortgage obligation at risk, no matter what anyone says contact your lender immediately. Too often, too many homeowners don’t contact their lender until it’s too late and ultimately are forced into foreclosure. Remember, it’s usually in the lender’s best interests to help a homeowner work out their mortgage difficulty. It’s lots cheaper for them than foreclosure.”

2007 year-to-date foreclosure filing numbers, according to ForeclosureS.com data:

- In pre-foreclosure filings, Nevada led the nation per capita with 17 out of every 1,000 of its homeowners in the first stage of the foreclosure process. A year ago that state had just 7.2 filings for every 1,000 of its households.
- The rest of the top five states per capita so far this year include Colorado (10.8 filings per 1,000 households), Florida (9.4 per 1,000 households), California (7.7 per 1,000 households), and Utah (6.4 per 1,000).
- Texas topped the nation by per capita in filings of notices of foreclosure auction, stage 2 in the foreclosure process, with more than 9 of every 1,000 households facing difficulties to date this year. That’s up more than 33% from the same time period last year. The state also leads the nation in total number of auction filings so far this year-32,011.
- Rounding out the other states in the top five auction notices: Nevada (7.7 filings per 1,000 households); Arizona (5.8 filings per 1,000 households), Arkansas (4.5 filings per 1,000 households), and Oregon, 4.4 filings per 1,000).
- Colorado led the nation per capita in REO filings, stage 3 bank foreclosed homes, with just over 9 homeowners out of every 1,000 losing their property as a result of foreclosure.
- The rest of the top five per capita in REO filings, bank owned homes include Michigan (6.3 properties lost out of every 1,000 households); Nevada and Georgia tie (5.4 filings of every 1,000 households), and Indiana ties with Ohio (4.8 filings out of every 1,000 households.
- Even though Indiana’s per capita REO filings ranked high nationally, they’re actually down 3% per capita year to date over 2006 numbers, according to ForeclosureS.com.
- Indiana joins 7 other states of the 45 (including the District of Columbia) reporting REO filings that also dropped year to date 2007 over the same period last year.
- Those other states with reduced REO filings include Massachusetts (off 97%), Oklahoma (off 16%), South Carolina (down 31%), Utah (down 55%), New Mexico (down 25%), Oregon (off 23%), and Hawaii (down 10%).

10:28 AM - Jul. 13, 2007 - comments {0} - post comment

Buyers bailing out of adjustable rate mortgages

In a news release, Wachter reported that 89% of borrowers with one-year adjustable-rate mortgages refinanced into long-term, secure loans in the first quarter of 2007. More than 60% of all new mortgages originating in January were prime mortgages, she added.  In addition, loans with private mortgage insurance rose more than 55% in March compared with February. The mortgage insurance provider Genworth Financial Inc. supplies data for the index, Wachter said.

It is difficult to tell whether the jump in mortgage insurance use is due to a new tax break for the premiums, effective this year, or because borrowers are avoiding the less predictable rates of piggyback loans. Piggyback loans are home equity loans or lines of credit which fulfill the down payment of a first mortgage; piggyback mortgages often have variable rates that fluctuate based on the prime rate.

The index was created in order to present the options available to borrowers when deciding on a home loan and to show them not only what initial payments would look like but also what they’d be five years down the line, she said.  “We really don’t have this kind of simple information out there for borrowers to make informed choices,” she said during a telephone interview.

According to the index, a 30-year fixed-rate mortgage with monthly mortgage insurance currently costs $1,400.31 in the first month and costs $1,270.31 in the 61st month. A 30-year fixed-rate mortgage with single financed premium mortgage insurance is $1,309.05 and the same in the 61st month.  The combination of a 30-year fixed-rate mortgage and a home equity line of credit (HELOC) currently costs $1,328.19 in the first month and $1,434.86 in the 61st. The combination of a 30-year fixed-rate mortgage and a closed-end second loan is $1,328.30 in the first month and the same in the 61st.

The combination of a 10/1 interest-only adjustable-rate mortgage and HELOC currently costs $1,203.02 in the first month and $1,309.69 in month 61. The combination of a pay-option ARM and HELOC costs $800.17 in the first month and $1,824.49 in month 61. All scenarios assume a $200,000 loan amount with a 5% down payment.

For those currently stuck with risky and/or costly mortgages, Wachter says “the time to get out is now.” Those working to get out of an undesirable mortgage should take the following steps:

Try to raise your credit score above 620, the traditional cut-off point for prime versus subprime.

Consider refinancing into a fixed rate prime mortgage, which will eliminate rising payments.

Don’t sit still if times get tough. Lenders, mortgage insurers and nonprofits all offer workout programs to make sure that foreclosure is a last resort.

10:13 AM - Jul. 11, 2007 - comments {0} - post comment

Making house hunting easier

Holly Slaughter, editor-in-chief of RealEstate.com Tips and Tools, suggests focusing on four key factors when looking to buy a house.

1. Location, location, location. A house needs to be near what's important to you and your lifestyle. How important is it to you that your home is close to your office? Is it more important to you that you're close to a good medical center or a convenient grocery store?

Everyone has their priorities, and you have to consider your family's when thinking about location.

2. The house. Does the floor plan meet your needs? Does it have enough room for your family to grow if future growth is in your plans? Think of buying for the long term and consider whether the house meets your needs, not just now, but any future needs you can anticipate. And don't discount your gut feeling. If this home doesn't feel like home to you, then move on.

3. Affordability. Getting pre-qualified for a mortgage before you begin visiting homes is the best way to know what you can afford. Often people fall into the trap of looking first, and falling in love with a home that's well out of their price range. Only look in whatever price range you can pre-qualify for.

4. Resale. As much as you like the idea of seeing you and your family growing old and gray in your new home, chances are you won't. Most people do not live in their house even for the full term of their mortgage. When home shopping, keep in mind that at some point you will probably want to put your home on the market, so don't compromise. If you decide a house has some aspect that you can overlook, you need to be aware that someone else may not feel the same way. When home shopping, choose a house that is not only appealing to you, but is also likely going to appeal to others down the road.

12:04 PM - Jul. 9, 2007 - comments {0} - post comment

Dad wants his own space

The survey revealed that Dad also has very specific ideas on how to decorate his corner of the castle even though 65% of the time, women are the sole decision makers for decorating. The survey was conducted by the Homes & Land Relocation Service Center among those fathers around the country requesting complimentary real estate magazines. This Father's Day, Homes & Land wishes the happiest of occasions and offers some insight that perhaps the best gift is right at home.

Twenty-eight percent of fathers desired a room dedicated for their own purposes. Of this group, the most popular room requests were, in order:

- an Office/Study
- a media room (or just a place for all of his TV & music equipment)
- a garage/workshop
- an exercise room

The study also showed that 72% of dad's claimed their own space within the home. The use of these rooms were: office/library, garage/workshop, game room and lastly, media room. Of this group, the men still dreamt of their own decorating style.

If they had their way they would decorate the room with:

- Personal memorabilia (including college memories)
- Sports/Golf
- Vintage items (cars, tools, photos)
- Animal or nature motif.

12:03 PM - Jul. 7, 2007 - comments {0} - post comment

Upgrade now - get rewards later

Our friends at bankrate.com have put together the following article on the best upgrades to install with an eye toward resell.

Whether the target date for listing your home on the market is a few months or a few years away — or whether you simply like to make decisions with an eye toward the future — you may well be wondering how putting some money into the house now will pay off later.

The hottest trends in home improvement feature environmentally friendly living, recycled products, and high-tech innovation — all in a warm and inviting space.  Judging by the number of television shows devoted to the subject, it seems like nearly everyone is interested in remodeling or renovating their home. In some ways, it's reasonable: Two-thirds of owner-occupied homes are at least 25 years old, research by the Harvard University's Joint Center for Housing Studies found — and that means there are millions of homes in need of an update.

To find out what's popular — and what's not — in the world of home improvements, we talked to several architects and designers to find out what trends they were seeing in the home renovation market.

Everything old is new again

Old houses might need updates, but a bit of the space's original character can remain, says Robin Wilson, CEO of Robin Wilson Home. Antique doors, lighting, hardware and floors can be preserved and restored to their former glory, even while adding the latest technology and materials. It might be time to ditch the fake wood paneling in the rec room, but the wide-plank hardwood floors in the den can be refinished to give an old room new sheen.

Recycled products are also making their way into home renovations: Kitchen countertops can be made from recycled aluminum, glass and even paper. Kitchen and bathroom sinks are made from recycled aluminum and bronze. Even the stuff you don't see in a home renovation — such as insulation — can include a significant percentage of recycled materials.

While recycled products have been around for some time, there's been a surge in interest, says Eric Phillips, vice president and general manager at DreamMaker Bath and Kitchen in Apex, N.C. Prices have come down and aesthetics have improved. "You don't have to sacrifice form or function for these products," he says.

Green solutions

There's a growing interest in environmentally friendly renovations — which makes both ecological and economic sense.

"People understand that using green products and systems can make their home more energy efficient and improve indoor air quality," says Maureen Ness, a project architect at the Minneapolis architecture and interior design firm LHB. "It saves money and makes their house healthier."

Phillips notes that people are beginning to choose eucalyptus woods, a fast-growing tree with wood that can be used for flooring and countertops. Water-saving devices in washers and toilets and energy-saving products from lighting to Energy Star appliances are getting a boost as well.

Kitchen upgrades

Kitchens have long been the family gathering spot, and home renovations continue to reflect this trend with added features to keep people entertained and content. Televisions and computers — with waterproof, wireless keyboards — are being integrated into cabinetry and freezer doors.

Wilson says many homeowners are hoping to achieve a seamless look to their appliances by matching the materials in appliances and cabinetry. "Refrigerators and dishwashers have interchangeable panels that can be used to hide appliances and make them blend into the kitchen," she says. That olive green fridge that used to seem adorably retro? Now it just seems old.

Along those same lines, Phillips says people have shown more interest in integrating appliances that used to sit on the countertop.  "People are building things like high-end coffeemakers into the cabinetry," he says. "It's a luxury item that has become more affordable."

Spa baths

Remodelers are eager to bring the spa experience home, says Phillips, and that doesn't just mean enormous tubs.

"We're seeing whirlpool tubs with added aromatherapy" components, he says. Speakers are often integrated into designs so homeowners can put on a soothing tune while they soak. Some even go so far as to add mood lights — large, color-changing LED light panels that cycle through a full spectrum of colors.  Another popular upgrade is a flat-screen television placed behind a two-way mirror; people only see an image when it's turned on.

Upgrading laundry rooms

Once sequestered to the corner of the basement, laundry rooms are moving up — they're often found on the same level as bedrooms. That's partly because washers and dryers are a lot quieter than in years past, and partly because they're more attractive, too. As a result, homeowners are paying more attention to the looks of these spaces.

Wilson says homeowners are considering a wide array of options to outfit their laundry spaces.  "People have hanging racks, folding areas, appliances that let them dry clean their own clothes, and machines that let them steam their own clothes," she says. "It's a much more luxurious space."

Warming trends

The cool, sleek look of modern design is making way for a warmer, more inviting look, says Phillips. "Stark and sterile is out," he says. "We're seeing people who want to have welcoming and comfortable spaces. They don't want to feel like they're in a museum." Golden hues are growing in popularity, and the brightest colors are taking a back seat to more muted, natural colors and tones.

Of course, the key to a great home renovation is making sure it fits your needs — a souped-up space is only worthwhile if you'll use it.

11:59 AM - Jul. 5, 2007 - comments {0} - post comment

Making sure you get the right mortgage

It's also controversial. Critics complain that brokers looking for a fat check from a lender can lead consumers into unnecessarily pricey loans. "One thing that consumers need to understand is that a broker's interest is not always aligned with theirs," said Ira Rheingold, general counsel with the National Association of Consumer Advocates. "You need to be very wary. Despite what the broker may say about getting the best loan for you."

Here's how mortgage brokers get paid: They can get a fee from you. Brokers can also collect a premium from a lender that is based on the rate of the loan — the higher the rate the more they make. And that's where the trouble begins, consumer advocates say. Brokers describe themselves as independent contractors, meaning that they provide services to consumers, as well as lenders. Critics charge that brokers sometimes push a pricey product to pocket higher fees.

Borrowers don't need to despair, though. Experts say there are ways to make sure you're getting a good deal from your mortgage broker.

1. Do your homework

Some fees and rates are negotiable — so don't say yes to the first deal you hear.

"My first advice would be to shop around. Check with a variety of lenders," said L. Jean Noonan, a partner at law firm Hudson Cook and former associate director for credit practices in the Federal Trade Commission's consumer protection bureau.  Also, consumers should be wary if their broker is offering a nontraditional mortgage that doesn't require full documentation of income and assets.

"Those mortgages almost always carry a high interest rate, and the consumer should be very sure that that's the right mortgage for them," Noonan said. "If they are able to document their income and assets, it's almost always worth doing that and getting a more favorable rate."

It's important to understand all of the fees, as well as the interest rate, associated with a loan.  "An inexperienced or fast-talking broker may not explain it well. A good broker understands his business is largely referral business, and unhappy customers don't give referrals," Noonan said.

2. Bring a buddy

Get help from someone you trust — other than the broker.  "It's fine to bring someone with you who can help stand up for you if you're feeling pressured," Noonan said.  The key is to ask for help from someone who isn't getting paid. You can turn to a home-ownership counselor, or friends and family with professional expertise or at least experience in real estate.

"Consumers should not rely on brokers, when all is said and done, to find them the best loan to take. They ought to turn to experienced professionals who can give them candid and informed advice," said Allen Fishbein, director of housing and credit policy at the Consumer Federation of America.

3. Don't be shy

It's important to ask questions, experts agree.  "You want to look for the loans that best meet your needs and budget," said Carole Reynolds, a senior attorney with the Federal Trade Commission's financial practices division.  You need to know whether the loan has a fixed or adjustable interest rate, whether it includes a balloon payment, and how soon you could face an interest-rate adjustment.

"You should understand these points before you become obligated because otherwise you may end up in a mortgage that is not truly right for you and that can lead to a payment shock," Reynolds said.

And, perhaps most important: Be wary of terms such as "no cost" and "no fees."  "You really need to look into the loan," Reynolds said. "You should be comfortable and understand the terms before you sign."

4. Don't sign under pressure

Take a deep breath, and remember that you are in charge of choosing the best mortgage for yourself.  "When brokers use high-pressure tactics, if a broker presses them to sign a contract, that should be a telltale sign that this broker is someone they should be wary of," Fishbein said.

Don't sign a contract you don't understand just to get the process over with.  "You are paying for settlement services and you shouldn't sign the papers and leave before you understand everything," Noonan said. "Don't rush to the settlement. When a purchase is hanging in the balance, they can still walk away but it is much harder to do. There's a time pressure to close by a certain date."

It's easy to be intimated at a closing. After all, there are many pages of loan documents to review, and some of the language is cryptic or in small type.  "They may feel that they are slowing things down, or they appear dumb if they ask questions," Noonan said. But don't let fear get the better of you when it comes time to choose a loan.

5. Know the score

Before you enter negotiations, look at your credit score. That way you can research loans ahead of time and find out what sort of rates you qualify for. You can get the information from an array of Web sites.

Also, credit scores can be wrong.

"If you see problems with your credit report, you need to get that fixed," Rheingold said.

11:53 AM - Jul. 3, 2007 - comments {0} - post comment

Burglar alarms - good or bad?

Did you know that home security systems may actually attract burglars? Shocking, but true.

Each year, Americans spend more than $18 Billion on professional alarm systems. Unfortunately, according to security consultant Walter Shaw, some of those systems may actually be attracting burglars. Shaw, a former burglar, contends that when thieves see a house with a security system sign on it, they know it typically means that the house actually has something of value inside...which makes it a better target for them to consider breaking into.

In addition, Shaw notes that determined thieves can actually use those security system signs to their advantage. First, if the sign displays the name of the alarm system company, a thief may be able to use that information to research the system and figure out how to bypass it. Second, thieves may decide to test the system. By tripping the alarm on purpose, burglars can gain a better idea of how long they'll have to get in and get out before the police arrive!

So do alarm systems help at all?

The answer, thankfully, is YES! A recent study indicated that alarm systems are still the single most effective way to reduce the risk of burglary. Interestingly, some preventive measures such as deadbolts do little to dissuade burglars, since these measures cannot be seen until a burglar has already chosen a house...at which point they tend to pursue it and find a way in, regardless of the deadbolts.

Here's how to best protect your home.

First, make sure any alarm signs posted on or around your home are generic - without the name of the security company. In addition, you might want to consider adding security cameras-or even fake cameras-around your entrances and windows. No thief wants to be caught on tape...even if they're wearing a mask. Also, make sure that bushes and branches are cleared away from windows and entrances.

For more help with your house's security, you should seek advice from a professional security provider. Be sure to tell them about your specific concerns and ask how to best address them.

11:38 AM - Jul. 1, 2007 - comments {0} - post comment

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