Oct. 31, 2007 - AmeriDream Program Extended

Downpayment assistance program goes into 2008

The Department of Urban Development (HUD) had planned to end the popular "down payment assistance" AmeriDream program today that allows sellers (homebuilders) to contribute toward a buyer's 3% FHA loan down payment. However, on October 22, in response to AmerDream's legal actions and a request for a temprary restraining order against the HUD rule; the program is now being extended through February 29, 2008.

HUD's response is voluntary and HUD will recognize all applications that have a signed sales contract prior to the effective date, according to its Congressional testimony. AmeriDream will be able to fund gift applications received until February 29, 2008, and will be only one of two entities that may offer seller-funded down payment assistance after October 31, 2007.

To learn more about this downpayment assistance program go to AmeriDream.org

Oct. 30, 2007 - What would you take?

Suriviving the threat of fire

While not exactly local news, Christopher Lee, a co-worker from my "other life" as a safety professional and a pretty darned good writer and webmaster, wrote of his experience surviving the California wild fires, near Los Angeles. Thankfully, he, his family and home are all safe and sound. But, he raises a provocative question - if your house were on fire and you had only minutes to grab a few things and evacuate, what would YOU take? Read Christopher's full narative below:

"This is the San Bernardino County Sheriff's Office. This is your final notification. You are under mandatory evacuation and must leave your home immediately. It is not safe for you to remain... ---- Third and final automated phone message received at 0720 PST, Oct 22.

Have you ever thought, "If my house were on fire, I wonder what I would take with me?"

The fire was not torching my home, but I had to get out right away. Only an idiot would have remained up there on the mountain. The increasing smoke was drifting up our street and beginning to sting our eyes. We definitely had to evacuate. But, for exactly how long we would be gone, or if we would even have a place to return to, was completely unknown.

In that tiny reality millisecond, my mind suddenly went into 'emergency mode'. I'm sure it's similar to what would happen should you ever be faced with, say, a real-life cabin prep. Those R.E.T. action items and the five or so questions that you're supposed to remember to ask the cockpit will all abruptly but very nicely kick in. You shift your thought process very, very quickly from "Dammit! I can't believe that this crap is happening to me!" to "Ok, the clock is ticking---what do I need to do first?" Item #1, Item #2, Item #3, etc... Disbelief becomes acceptance. Shock becomes action. Stubbornness becomes accepting reality.

Before that early morning greeting from our friendly police department, I would have probably considered a very different evacuation item list. It would have been a list mostly based on what I thought I might need to take with me. But that was then. And back to that morning, I had about fifteen minutes to run through the house and grab whatever would quickly fit in the car. That is, I had:

• Five minutes to decide what would be the most important items of my life to take.
• Ten minutes to actually carry out said items to my car for the hasty exodus down the mountain.

Looking back at this list, I find it extremely telling and interesting. Remember that it was compiled in five minutes, while running though the house. It was limited by what I could carry and actually fit into the car, as well as sort through in my rushed haziness at the time.

Evacuation List

Compiled between 7:20 - 7:25 am, Oct 22, 2007

Quantity	Item
1	Wife, seven months pregnant
2	Pets (1) Shetland Sheepdog (1) African Grey Parrot
1	Wedding Album
3	Photo/Memory boxes. These contain travel photos, souvenirs, memories, etc. One of them has a bit of sand I scooped up from the Sahara Desert, a colorful dagger I was given in Nepal, a train ticket stub to Leningrad in 1988...you know, an odd assortment of travel items that carry interesting memories.
1	Electric razor. I forgot to bring the darn cord to plug it in. Thus, a few good shaves, and then its Grizzly Adams time.
1	Toothbrush. This one was really dumb, because you can always buy another toothbrush anywhere. But, that's what I grabbed-go figure.
1	Jacket.
1	Laptop computer
2	IBM web server computers (contains all my graphic source files, software, and everything I've ever done with JSN). Yeah, like I'd leave that behind.
1	Roll of paper towels. Also dumb. Why the hell would I bring that? See toothbrush above.
1	Digital camera
1	Pack of prescription contact lenses for wife.
1	Baby heart monitor (so we can still hear Keira's heartbeat while stranded at hotel/motel). This was already in the car, so I guess it doesn't count.
1	Dog carrier (not necessary but taken nevertheless)
3	Removable hard drives (all our financial info, email, etc)
2	Cell phones
2	Undeposited checks. Total $40.00. Gee wiz.
1	Wallet (credit cards, ATM cards, and that sort of thing)
1	Insurance policy and paperwork (may be kind of important if house reduced to embers)
10	Cords and annoying tangled power adapters to plug in computers, hard drives, web servers, etc.
1	Phone book yellow pages.
1	Cash. Total $11.00. Change was left on dresser.
5	Small bottles of water. Yeah, well, I might get thirsty!
2	Towels. They were used to prop up the bird carrier in the car---and cover it so Simon would not have to breathe as much smoke.
4	Breakfast bars. Hey, have you ever experienced a pregnant wife? No? Than, trust me, this was an important item.

Nothing else was taken. No crew ID, no passport, no birth certificate, no other paperwork of any kind. I really didn't care about that stuff and didn't want to spend the few minutes I had trying to find those items. I know you are supposed to bring that paperwork, but "supposed to" and "actually having to make that decision" are two different things.

What I wished I'd remembered to bring:

• Clothes! Target has been our good friend this past week. Every clothing item we're now wearing is 100% Target rack on-sale certified. But there's something nice about being able to wear your regular old clothes that can help during a time of crisis. That is my EAP advice---take it for what it's worth. And they also sold maternity clothes there---always handy for stranded evacuees that are 7 months pregnant.
• Some of my recent "So, You're Going to Be a Father" books (this waiting around can be stressful, and I miss reading though some of them)
• More of Simon's toys (Parrot toys can be very expensive---a little fact I forgot while loading the last of the items into the car that morning)
• Bailey's regular food diet mix. This necessitated a trip 60 miles away to a place that had it in stock.
• More family photos. A lot of them were on the wall, and I just blew past them in all the rush---completely forgetting to pull them down and carry to the car.

And so, that's about it. This is the list of what I brought and remains an interesting window into the balance of what is important vs. what is practical vs. what was actually taken and carried out.

That's enough for now. Back to the waiting..."

Christopher, I'm happy that you and yor family are, safely, back in your home. I know it still will be be a while before things settle down and that "normal" will never be the same. Thanks for another incredible article.

For everyone else - what are you waiting for? Take time now to make an emergency plan for you and your loved ones. Need help getting started? Click here

Source: jumpseatnews.com

Oct. 28, 2007 - New supermarket coming

Shoprite opens November 7th

In a little more than a week, Franklin Township will be home to New Jersey's newest ShopRite supermarket that is still under construction. The new store will be located at the intersection of Elizabeth Avenue and Old New Brunswick Road. The grand opening is scheduled for 8 a.m. November 7th, including a ribbon-cutting ceremony.

At an adjacent parcel, designs are underway and will be presented to the Franklin Ttownship Planning Board for aproval.

Oct. 27, 2007 - It's free and feels good too

Help to provide free mammograms

That's right, it's free and feels good too. You can help to provide free mammograms to underprivileged women at absolutely no cost to you through the efforts of the National Breast Cancer Foundation.

By clicking the pink "It's Free" button your click is paid for by the sponsors on breastcancersite.com. It takes only seconds.

The button above will take you the site where you will click on another pink button.

You can also help the cause by passing along this information to friends, neighbors, family and co-workers. I feel better already!

Oct. 24, 2007 - Road & Bridge Projects

ROAD PROJECTS

Route 28 Corridor Improvements, Boroughs of Bound Brook and Somerville and Township of Bridgewater. This Project consists of curb and sidewalk replacement along Route 28 at various locations in the towns referenced. Also included will be intersection and traffic signal improvements. At the intersection of Main St. and Division St. in the Borough of Somerville, revisions to the existing traffic signal will require a detour diverting Northbound traffic on Division Street to South Street to South Bridge Street. This detour will take effect on Monday, October 8^th and is expected to remain in place approximately two weeks.

Somerset Street between Mountain Ave, and Summit St. and intersection of Summit / Greenbrook Road, Borough of North Plainfield. Work on this project will begin on or about September 15^th . This work involves the installation of a traffic signal at the intersection of Somerset Street and Mountain Ave. and replacement of the traffic signal at the intersection of Somerset St. and Summit / Greenbrook Ave. There will also be sidewalk, curb replacement and minor widening between Mountain Ave. and Summit Street. Construction is expected to be completed by mid November. Traffic will be maintained, therefore, delays can be expected.

Davenport Street, Veterans Memorial Drive, South Richards Avenue, Van Doren Avenue, Borough of Somerville. These roads will be receiving a Microsurfacing treatment beginning with Davenport Street on Saturday, October 20^th.. Work is anticipated to be completed by the following Tuesday. Traffic will be detoured block by block as required.

BRIDGE PROJECTS

Finderne Avenue Bridge, Township of Bridgewater/Borough of Manville. Reconstruction of this bridge over the Raritan River linking Finderne Ave. in Bridgewater and Main Street in Manville will begin Tuesday October 24^th. Motorists are advised to expect delays. Traffic will be reduced to one lane in each direction. The work is expected to be completed in the spring of 2008.

Bridge on Southside Avenue, (at Hamilton Street), Borough of Somerville. Southside Avenue at this location is closed for a bridge replacement and is expected to reopen in December. A detour is posted.

Bridge on Centerville Road (near county line just off township section of Old York Road, Township of Branchburg This bridge isws now open.

Bridge on Talamini Road (near Glenridge Drive), Township of Bridgewater. This bridge has been closed and will be replaced with a new structure. The closure will last for approximately 50 days, and a detour has been posted. Due to the necessity of relocating a waterline it will require this bridge to be closed for approximately 75 days.

Bridge on State Route 22 at Station Road, Township of Branchburg. Traffic along Route 22 will be maintained during construction by building a Temporary Structure in the median. Building this structure will require Station Road to be detoured closing Station Road Friday, September 14^th at 10:00 PM until Saturday, September 15^th at 10:00 AM. Station Road will also be closed during the week of Monday, September 17^th each day from 8:00 PM to 6:00 AM. The detour will direct traffic to Readington Road to College Road and to Easton Turnpike (Route 28). Traffic along Route 22 will be maintained, however, daytime and nighttime lane closures will cause delays, therefore, alternate routes are suggested. Construction is expected to be completed during the summer of 2008.

Bridge on Church Street (Union Avenue Route 28 to West Franklin Street, Borough of Bound Brook. This portion of Church Street will be closed due to bridge repairs beginning Monday, October 15^th between the hours of 8:00 AM and 3:00 PM daily. The work is expected to be completed in two weeks.

Bridge on Mountain View Road (east of Pleasant View Road), Township of Hillsborough. Beginning Monday, October 15^th, Mountain View Road between Pleasant View Road and Route 206 will be closed for approximately 60 days for the replacement of a bridge. A detour will be posted.

CSX Railroad Crossing on Belle Mead Blawenburg Road (Co. Rt. 601) at Grandview Road, Township of Montgomery. This railroad crossing is scheduled to be upgraded requiring the road to be closed to thru traffic beginning on or about October 28^th. The work is expected to be complete in one week. A detour will direct traffic along Sunset Road to Route 206 to Dutchtown-Harlingen Road back to Route 601.

Oct. 23, 2007 - What buyers want

And what features buyers will pay extra for

Last January I posted. Tips to avoid over-investing in your home which served as a follow-up to Ready, Set, Go, A Seller's Check List. Both of these postings spoke to what sellers could do to maximize the return on investment (ROI) for home improvements and influence the selling price of their homes.

Today, I focus on what features home buyers are looking for this fall '07 season. With the high inventory of homes on the market for sale, here in Somerset, having these key features along with "on target pricing" from the start will help to distinguish your home from the others.

The National Association of Realtors (NAR) research shows that, "almost 60% of home buyers are prepared to spend more for a house with an oversized gar gage, hardwood floors, granite countertops and almost 40 percent would do the same for a house that's wired for cable or satellite TV."

The top five most desired home features are:

1. Central Air Conditioning

2. Oversized Garage

3. Walk-in Closet in Master Bedroom

4. Backyard/Play Area

5. Cable/Satellite TV Ready

The top five features buyers are ready to spend extra for:

1. Walk-in Closet in Master Bedroom

2. Hardwood Floors

3. Granite Countertops

4. Separate Shower in Main Bath

5. Whirlpool Bath

Interior colors trend towards earth-tones and soft colors. Bringing the outdoors inside the home; today's buyers want shades of blues, greens and browns -- sharp contrasting colors such as red or orange are top accents.

Oct. 19, 2007 - New RESPA requirements proposed

Proposed Bill tightens mortgage lender/appraiser rules

Tuesday, Representative Paul Kanjorski (D-PA) introduced H.R. 3837, The Escrow, Appraisal, and Mortgage Servicing Improvements Act of 2007. As reported in Inman News, H.R. 3837 is aimed at protecting consumers and financial institutions by addressing shortcomings in the appraisal regulatory structure, among other things. The proposed legislation includes provisions that will ensure an independent appraisal process, strengthen regulatory authority over bad actors and recognize the importance of professional designations when selecting an appraiser. The bill also creates new standards within the Truth in Lending Act (TILA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The standards would penalize parties involved in a real estate transaction for attempting to influence the independent judgment of an appraiser through collusion, coercion and instruction, and punish appraisers who have direct or indirect interest in a property or transaction. Don Kelly of the Appraisal Institute said, "We are particularly pleased to see that H.R. 3837 promotes appraiser independence because an independent appraiser is best able to help ensure the integrity of the lending process for the benefit of the consumer and the financial institutions involved."

The Escrow, Appraisal, and Mortgage Servicing Improvements Act would update the Real Estate Settlement Procedures Act (RESPA) to create new requirements for mortgage servicers. This bill would require escrow accounts on high-cost loans to be used to make property tax and insurance payments, place restrictions on "force-placed" insurance, and require loan servicers to respond more quickly when borrowers report errors in their payment histories.

The National Community Reinvestment Coalition welcomed the new regulations, saying borrowers without escrow accounts are often surprised when property taxes and insurance are due and haven't budgeted for them. And borrowers can end up in default or foreclosure if abusive loan servicers don't correct errors in their payment histories, the group said.

Source: Appraisal Scoop, Inman News

Oct. 17, 2007 - Franklin Township seniors get free flu shot

The Quailbrook Senior Center offers flu shots

The Visiting Nurses Association (VNA) of Somerset Hills will administer flu shots to seniors from10:30 a.m. intil 1;30 p.m. Nov. 1 at Franklin Township's Quail Brook Senior Center, 625 New Brunswick Rd. Seniors who would like to receive a flu shot are asked to pre-register by calling (732) 563-4213 by Tuesday, Oct. 30.

To receive the vaccination at no charge, eligible participants must have Medicare Part B and bring the Medicare Part B card with them. Otherwise, the cost will be $25.00 per person, payable by cash or check. If you wish to have lunch, please contact the senior center by 10:30 a.m. on Tuesday, Oct. 30, to make a reservation. A suggested donation of $1.50 is recommended for lunch, which is catered by Merri-Makers Caterers of Edison.

For more information, contact Manager Ellen Baxter, Quail Brook Senior Center, at (732) 563-4213.

Oct. 14, 2007 - Get automatic updates

How to use the RSS feed

For those who regularly read my Blog postings and might want an easier method of getting them, there is the RSS feed. Not familaiar with RSS? RSS delivers content to you without cluttering your e-mail inbox. Hector Virgen, a web developer responsible for RealTown.com, writes an excellent FAQ on the subject and how best to utilize this terriffic tool.

You can find the RSS icon on Somerset 08873 just above "Categories" located on the right side of your screen.

Read Hector's Guide to RSS and start getting Somerset 08873 postings delivered directly to you. Thanks for a great article, Hector.

Oct. 13, 2007 - Brighter mortgage predictions from NAR

Improvement in Mortgage Market Bodes Well for Housing in 2008

Earlier this week the National Association of Realtors® (NAR) released a forecast of improving mortgage market conditions and in early 2008 pent up demand should be eased.

The press release went on to say, "Lawrence Yun, NAR senior economist, notes that widening credit availability will help turn around home sales. "Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages," he said.

Yun said it's important to place the current housing market in perspective, and that 2007 will be the fifth highest year on record for existing-home sales. "Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year - a lot of people are, in fact, buying homes," he said. "One out of 16 American households is buying a home this year. The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs, reflecting favorable mortgage rates and positive job gains."

He emphasized all real estate is local with naturally large variations within a given area. To read the complete NAR news release, click here

On other mortgage matters, effective October 31, 2007, under current guidelines, the Department of Urban Development (HUD) is ending the popular "down payment assistance" Ameridream program. It allows sellers (homebuilders) to contribute toward a buyer's 3% FHA loan down payment.

In response to HUD's actions, Ameridream has filed for a temporary restraining order against the HUD rule. For more information on Ameridream and it's legal motion, click here

Oct. 11, 2007 - The National Affordable Housing Act passes

Bush threatens a veto

The Democrats may be headed for another showdown with President Bush as the U.S. House of Representatives yesterday passed H.R. 2895, the National Affordable Housing Trust Fund Act of 2007 by a vote of 264 to 148. The National Affordable Housing Trust Fund will be the largest expansion in federal housing programs in decades, with a goal of producing, rehabilitating and preserving 1.5 million housing units over the next 10 years. The bill will initially allocate between $800 million and $1 billion annually directly to states and local communities, without increasing government spending or the federal deficit. The administration was on record threatening to veto this measure earlier this week.

Three of the major housing trade groups are supporting the housing trust fund, including National Association of Home Builders, Mortgage Brokers Association, and the National Association of Realtors (NAR).

The National Affordable Housing Trust Fund, according to the House Financial Services Committee release, is an important step in addressing the affordable housing crisis in our country. In addition to the trust fund, the House of Representatives passed last month,H.R. 1852, the Expanding American Homeownership Act of 2007, to reform the Federal Housing Administration (FHA), which will enable the program to serve more subprime borrowers at affordable rates and terms, recapture borrowers that may have received risky loan products in recent years, and offer refinancing opportunities to borrowers currently struggling.

On May 23, 2007, the House passed H.R. 1427, reforms of the Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac, and the Federal Home Loan Bank system, allowing these entities to purchase more loans in higher cost areas (lowering interest rates for new homes and refinances in those areas). The bill also seeks to increase liquidity now by asking federal regulators to reconsider artificial restrictions on the number of loans that the GSEs can own.

Send a note of thanks if your Congressional Representative voted for this bill. If s/he didn't; let him/her know this bill has your support and regardless of this administrations threat to veto, you want this act to become law. Contact your Congressional Representative(s) here. Why not do it now?

Summary of the National Affordable Housing Trust Fund Act

Funding of the Trust Fund: The goal of the Trust Fund is to construct, rehabilitate, and preserve 1,500,000 units of housing over the next 10 years. The bill seeks to accomplish this with funding from the proposed GSE Affordable Housing Fund (H.R. 1427), FHA savings that result from the enactment of the Expanding American Homeownership Act (HR 1852), and any other sources of funds subsequently identified.

Formula under the Trust Fund: 60% of monies will go to participating local jurisdictions and 40% to states, Indian Tribes and insular areas. A proportionate amount of funds to States must go to rural areas in each State. If the total amount available in any year is less than $2 billion, there is a $750,000 minimum funding threshold for local jurisdictions.

Targeting under the Trust Fund: All Trust Fund monies must be used for low income families (below 80% of state or local median income), except that this income ceiling is reduced to 60% of local median income if annual funding in any year is less than $2 billion. At least 75% of funds must go to extremely low-income families (below 30% of median income or below the national poverty level). At least 30% of funds must go to families with incomes below the SSI income limit. In addition, at least 10% of funds must go to families with incomes over 50% of the local area median income.

Eligible Recipients of Trust Fund Monies: States, participating local jurisdictions, and insular areas are required to make Trust Fund grants to eligible recipients, which can be any organization, agency, or other entity, including for-profits, nonprofits, and faith-based organizations, that have demonstrated the experience and the capacity to carry out the proposed Trust Fund activity. HUD allocates grants to Indian tribes by competition.

Eligible Uses of Trust Fund Monies: The bill would allow Trust Fund monies for construction, rehabilitation, acquisition, preservation incentives (including for manufactured housing and community land trusts) and operating assistance to facilitate affordability. Funds may be used for both rental housing that is affordable and for down payment and closing cost assistance by first time homebuyers.

Prohibited Uses: The bill includes prohibitions against any funds being used for administrative costs or expenses, political activities, advocacy, lobbying, counseling, travel expenses, and preparation of or advice on tax returns. In addition there is a requirement that grantee develop systems to ensure program compliance, and require annual state fund use reports, and authority for HUD to impose penalties on states that do not comply with requirements, including requiring states and grantees to reimburse misused funds.

Matching Requirements of the Trust Fund: The bill requires a match for Trust Fund dollars equal to 12.5% if provided from state, local and private resources or 25% if provided from federal sources. Up to 33% of this match may be provided through binding commitments to provide services for residents. The match may be reduced or waived where a zoning variance or other waiver of regulatory barriers was required to site Trust Fund-assisted housing.

Sources: House Financial Services Committee, BuilderOnline.com

Oct. 8, 2007 - September 2007 Residential Sales

Franklin Township Residential Sales

This month the report takes on a new format. Now you will be able to view photos (where available) of the properties that sold/closed during the month.

The month of September ended with 47 Franklin Township single family residences sold with an average of 74 days on the market (DOM) and receiving 97.6% of the listing price. The average list price was $327,399 and the average sale price was $319,508.

The month of September ended with 473 active listings remaining on the market.

If you have a question about a specific property in town, or stats for surrounding areas, please do not hesitate to contact me

Source: GSMLS

Oct. 4, 2007 - Open House locator

Get to know OpenHouse.com This relatively new portal for open homes allows you to:

• Search for Open Houses
• See date and time schedules
• View pictures and detailed information about homes
• Sign up for e-mail alerts about future Open House events
• Get maps and directions
• Request more information or schedule a private showing, either before or after the Open House

Take a look at this weekend's Franklin Township area showings (10 mile radius)

Also, be certain to check this weekend's CENTURY 21 Our Town Realty Open Houses

Schedule a private showing. Contact me via e-mail or call (908) 583-0409

Learn about Buyer Agency and why home buyers should not venture into open homes alone.

Oct. 4, 2007 - Mortgage money is out there

It's not exactly a mortgage meltdown

Despite what is hyped daily in the news media, mortgage money is plentiful. However, you should know that FICO credit-score standards generally are higher than a year ago and stated-income mortgages with no verifications are hard to find. Kenneth R. Harney, reporter for the Washington Post wrote, "Jim Brown, chief executive of Veteran Mortgage, agreed that "the 'mortgage meltdown' idea is way overstated…a lot of people think that the mortgage market is in much worse shape" than it actually is."

Buyers will find that most lenders' underwriting standards are stricter than they were a year ago. Jumbo loans (more than $417,000), for example, may often require two appraisals, including one by the lender's chosen appraiser.

Some borrowers may choose FHA insured mortgage programs. The Federal Housing Authority (FHA) offers loans for those with past credit problems. FHA loans have been helping people become homeowners since 1934. These loans are consumer-friendly with no prepayment penalties, are flexible and generous for borrowers currently needing less than $417,000. Strict compliance of documented income and assets is required. Franklin Township offers many housing options that fit within these guidelines.

Help could also be on the way from our US Congress. The House of Representatives passed a bill on Sept. 18^th allowing FHA loans to go as high as 125 percent of an area's median home price or 175 percent of the limit for loans purchased by Fannie Mae and Freddie Mac. A companion bill approved by the Senate Banking Committee would place a cap on FHA loans at the Fannie Mae-Freddie Mac limit that is currently $417,000.

Overnight mortgage rates from Bankrate.com

For more information regarding FHA loans click here or you may contact me regarding anything posted here.

Oct. 3, 2007 - Post-Boom New Jersey Bidding Wars

Overpricing your home, part deux

December 19, 2006 I Blogged about the problems of overpricing your home, especially in today's marketplace. The Wall Street Journal reported today of a trend that's happening when buyers perceive a home to offer true value. It results in a bidding war when the home is priced slightly under market value.

Here's what the WSJ says, "Home buyers in the New York suburbs of northern New Jersey are getting into bidding wars. But they're not the same as the battles of the housing boom, when house hunters vied to present a winning offer as soon as a home hit the market, says the Record of Hackensack, N.J.

Now bidding wars most often take place when the owner of a property that isn't selling reduces the asking price to the "sweet spot" - a dollar amount considered a "good value" by consumers, the newspaper says. For instance, one homeowner in Tenafly, N.J., reduced her asking price five times - from a high of $810,000 to a low of $699,000. In May, her final asking price garnered multiple bids after her home had been on the market for about eight months. She eventually sold her house for a little less than her final list price."

Oct. 2, 2007 - Don't get caught "CLUE" less

Free insurance report is available

A little known report, commonly called the CLUE report, can affect how much homeowners pay for insurance and it's causing a lot of controversy. There are two major property claims databases, CLUE (the Comprehensive Loss Underwriting Exchange) and A-Plus (Automated Property Loss Underwriting System). Most people refer to the reports generated by either system as CLUE reports.

CLUE was created in 1992 and is administered by ChoicePoint, a data management company. According to the Insurance Information Institute (III), a typical homeowner files a claim only once in 10 years. Since the data is only kept for five years, most people have no CLUE record. Data provided in CLUE reports include policy information such as name, date of birth, policy number and claim information such as date of loss, type of loss and amounts paid.

New Jersey homeowners can get their own Free CLUE report from ChoiceTrust electronically. This report shows your home and auto insurance claim history.

The insurance industry says CLUE reports help keep costs down, but opponents say the reports can be a home buyer's nightmare. If a buyer is in the process of purchasing a home, they can't order a copy of the home's CLUE report. It must be done by the seller. Sellers who suspect errors may contact ChoicePoint or their insurance agency, which must follow certain procedures to investigate the discrepancy.

Your insurer may have up to 60 days after issuing a policy to thoroughly review all the underwriting information, including CLUE reports, and cancel a policy if new information comes to light that makes the risk unacceptable.

However, a homeowner's policy must be in place at closing and since many home buyers leave purchasing a homeowners policy to the last minute, the insurer may not have checked all the underwriting material by the time the closing takes place. This may leave issues that could arise after the home has closed and the buyer has moved into the property.

Because of this, informed Realtors are now encouraging buyers to start shopping for coverage early in the real estate transaction process and include a contingency that the purchaser is satisfied with the insurability of the property.

Before the year end holidays are here, it would be prudent to get all the free stuff that the government promised you via the FACT Act, if you haven't done so already. In addition to the CLUE report, get your Free Credit Reports from all three bureaus at AnnualCreditReport.com. You can order all three at once or space them out over 4-month periods to track your credit throughout the year and quickly identify possible identity theft.