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        <title>Newport RI Real Estate Blog</title>
        <link>https://www.hoganassociatesre.com/blog/2011-01/</link>
        <description>Read Hogan Associate's take on real estate trends and life in Newport, RI.</description>
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    <guid>https://www.hoganassociatesre.com/blog/10-things-you-must-consider-when-contemplating-a-short-sale.html</guid>
    <link>https://www.hoganassociatesre.com/blog/10-things-you-must-consider-when-contemplating-a-short-sale.html</link>
        <title>Short Sales in RI: 10 Things You MUST Consider</title>
    <description> <![CDATA[ 
Before we get into the nitty gritty, let me start off by saying a few things about myself. My real estate career began after my employer, a boutique financial firm where I was CFO, closed abruptly.  When the shock wore off, and I finished mourning, I picked myself up, dusted myself off and started over in real estate.  It wasn't easy, but now I find tremendous satisfaction in helping homeowners understand the options and the obstacles to getting back on their feet. The point I'd like to make here is this: things happen, you can adjust, and you can start over. Yes, the economy is bad. We are at close to 10 unemployment. Your home value probably has dropped, and, if you owe more than your house is worth, a short sale may provide the relief you need to get your financial life back on track.Here are the things you need to consider:1. If you can't afford to keep your home, and your home is worth less than the balance of your mortgage, you may be able to avoid foreclosure by participating in a short sale.  In a short sale the bank agrees to allow you to sell your house for less than your mortgage balance as a first step toward settling your outstanding debt.2. Short sales can be preferable to foreclosure in several ways. Unlike a foreclosure, a short sale puts YOU in control of the sale, not the bank. Your home sale will be handled like any other listing, with one exception. Before an offer is fully executed, the bank must agree to the price and terms. 3. A short sale can be preferable to foreclosure because it MAY cause less damage to your credit.  A short sale MAY also result in a shorter waiting period before you are able to finance another home.4. In order for a bank to consider a short sale you must prove that you have been subject to legitimate Hardship. Living beyond your means, buying another home, problems with neighbors or outgrowing your current home do not qualify. Hardship means hardship, and examples include unemployment, divorce, medical emergencies, bankruptcy or death.5.  Once you establish legitimate Hardship, the bank will consider other factors including the current Market Value of the home. You must produce hard comparable data to demonstrate that your home is worth less than the unpaid balance owed to the lender.6.  You mortgage must be in Near Default Status. It used to be that lenders would not consider a short sale if your payments were current, but that is no longer the case. 7.  You must be able to demonstrate that you have no other assets with which to satisfy your mortgage obligation.  Be ready to provide copies of your tax returns, pay check stubs and/or financial statements. Should your lender discover undisclosed assets, they will deny the short sale and expect you to apply those assets toward your mortgage balance.8.  No set standard applies to lender approved short sales, and a variety of outcomes is possible. Sometimes you can negotiate away the balance owed  and eliminate your debt entirely. Other times, the bank will obtain a deficiency judgment against you. In that case, the sale of your home will satisfy only part of your mortgage obligation, and you will have to repay the balance at a later time. A bank can also forgive your debt but issue a 1099 Tax Form.  The 1099 transforms the forgiven debt into taxable income for you. If this happens, however, you might qualify for tax relief on your primary residence under the Mortgage Forgiveness Debt Relief Act of 2007 (With the Emergency Economic Stablization Act of 2008 which extends benefits out to 2012).9.  Anyone who has participated in a short sale will tell you it is often frustrating and slow. On average, banks take 45-90 days to decide whether to accept or reject an offer submitted by the seller. Knowing what to expect makes the process a bit easier to manage.10. A very high percentage of short sales never make it to closing. Lack of experience on the part of the seller's agent is often to blame, and the result can be an unwanted foreclosure after the short sale fails.  Choose your Realtor carefully.If you stick with professionals who specialize in this area, you will give yourself the best shot at avoiding foreclosure and getting your financial life back on track.  If you would like to have a confidential conversation about whether a short sale makes sense for you, please call.



 

 
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    <pubDate>Sat, 29 Jan 2011 14:21:00 -0500</pubDate>
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    <guid>https://www.hoganassociatesre.com/blog/you-can-buy-a-home-with-10-down-and-no-private-mortgage-insurance-heres-how.html</guid>
    <link>https://www.hoganassociatesre.com/blog/you-can-buy-a-home-with-10-down-and-no-private-mortgage-insurance-heres-how.html</link>
        <title>You CAN buy a home with 10 down and no Private Mortgage Insurance. Here's How:</title>
    <description> <![CDATA[ 
As many people know, banking has become much tougher, and financing options have drastically shrunk since the recent banking implosion.  It no longer is just signing a purchase and sales and waiting for the closing.  Buyers in this market need expert advice on how to navigate banks and if paired correctly with the right mortgage product can save substantial money or actually make it to the closing.


In a recent deal, my buyer finally found a house that worked well for their family but needed updates to make it feel like home.  After reviewing the needed work and the intended down payment, we realized that the cash required for improvements wouldn't allow them to put 20 down forcing them to pay for Private Mortgage Insurance (PMI) - an added expense we were planning to avoid.  I suggested they talk to Citizens Bank who recently launched a 80/10/10 program that alleviates the need for PMI.  How it works is the buyer puts 10 down, the bank issues an interest only 20 year home equity line for 10 and remaining 80 is financed conventionally.  This saved my client $1476 per year, allowed them to pay it down without penalty at anytime and keep cash on hand to work on the house.


The alternative was to put 10 down and pay PMI unitl the loan was paid down to 78 of the sales price (which would conventionally take around 6 years) or pay for a new appraisal in 2 years and see if the value rose enough to have 22 equity in the house. 


The numbers went as follows:


 Purchase Price - $372,500


Option 1:  90/10


90 loan to value with a $335,250 mortgage at 4.75 - principle and interest would have been $1,748.82 plus PMI of $145.28 for a total of $1,894.10


 Option 2:  80/10/10 


80 loan to value with a $298,000 conventional mortgage at 4.75, priciple and interest was $1554.51 plus a $37,250 home equity line at prime plus 3.74 or 6.99 today interest only of $216.98 for a total of $1,771.49.


Long story short, the right mortgage product can save you money, help buy a property you thought wasn't an option and make the home buying process a much more enjoyable experience.  A good agent should know about all the current products and steer you in the right direction for the most succesful outcome possible.  If you have any further questions on current products or some suggestions you may not have thought about give me a call.


 


 


 

 
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    <pubDate>Thu, 20 Jan 2011 10:58:00 -0500</pubDate>
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    <guid>https://www.hoganassociatesre.com/blog/waterfront-real-estate-in-ri-10-things-you-should-know-before-you-buy.html</guid>
    <link>https://www.hoganassociatesre.com/blog/waterfront-real-estate-in-ri-10-things-you-should-know-before-you-buy.html</link>
        <author>leslie@hoganri.com (Leslie Hogan)</author>
        <title>Waterfront Real Estate in RI: 10 Things You Should Know Before You Buy</title>
    <description> <![CDATA[ 
Know the Rules. Enjoy the Lifestyle.


Waterfront properties are life enhancing.  They offer long, lazy days at the shore, your own lobster pots, idyllic family vacations, views to decompress the most frazzled executive and a rare, primal connection with nature. Like most rare and wonderful things, however, they come with their own set of unique challenges. So if you're looking for a waterfront home in Rhode Island, here are a few things to keep in mind.1. COASTAL BUFFER ZONES - Although your property extends to the water's edge, Rhode Island's Coastal Resource Management Council has jurisdiction over the last 200 feet.  This area is called the coastal buffer zone, and it is measured inland from the mean high tide mark. Improvements like docks, stairs, boathouses or walkways all require a detailed application and approval by CRMC. Once a permit is granted, construction can begin.2. CLEARING &amp; MAINTAINING THE BUFFER ZONE - Vegetation must be maintained according to strict regulations that prevent removal of established trees and plants in the buffer zone. You may also be required to plant native species (like blueberries and grasses) in this area. CRMC monitors the vegetation along the coast using satellite images to determine whether an area has been cleared or altered without permission. Violations can result in significant fines.3. FLOOD CONCERNS &amp; INSURANCE - Check to see whether your prospective home is in a flood zone. FEMA's website, includes flood maps indicating the likelihood of serious flooding in your area. New construction must be sited above the flood elevation, and more hazardous zones require flood insurance. To obtain flood insurance, you will need an elevation certificate. An elevation certificate measures the difference in elevation between your home and the base flood elevation of your area.  It is normally prepared by a licensed engineer, and it is required in order to calculate the risk for your location and the rate for your policy. Because FEMA adjusts its flood zones from time to time, don't depend on the seller's certificate which may be out of date.  Also, make sure to check with your insurer to see when your flood insurance policy will take effect.  Be aware that cash transactions (no bank involved) trigger a 30-day waiting period from the time your policy is approved to the time it actually takes effect. 4. MAINTAINING A HOME BY THE WATER - Salt air is hard on most metals and some paint. Check the hardware and exterior materials on the home to make sure it can stand up to the punishment that wind and weather inflict on coastal properties. 5. DOCKS - Don't assume you can build a dock. Docks are often approved after CRMC review, however, a detailed application with engineers' drawings is required, and permission depends on a variety of factors including the water classification in the area.  You can learn more about specific water classifications and their respective restrictions at CRMC’s Water Use page. Also, take a look at this post: Can I Build a Dock om My Water Front Property?6. SEPTIC SYSTEMS - If you're buying waterfront land in an area without a municipal sewer system, be sure the property has an approved septic design.  Alternatively, make your offer subject to septic design approval for a specific number of bedrooms. Septic designs are prepared by engineers and submitted to Rhode Island's Department of Environmental Management for approval.  If the septic system is in or near the coastal buffer zone, you will need CRMC approval as well before installing or replacing a system.  The capacity of the septic system will determine the number of bedrooms you can build.7. WELLS – In areas where municipal water is not available, make sure there is a well with potable water, and be aware that wells must be located at least 200 feet from your septic system AND 200 feet from your neighbors’ septic systems. Contact the Department of Environmental Management and Coastal Resources Management Council to review all state regulations that apply.8. VIEW PROTECTION - Homeowners have no inherent right to a view. Make sure your view won't be compromised by a new or expanded home in your site line.  Look carefully at the trees in the neighborhood to see whether they could block your view as they grow. Find out about the neighbors’ feelings about view protection. Look at the deeds of the properties in your site line to see whether any view easements exist.9. PROTECTIVE COVENANTS &amp; ASSOCIATION DOCUMENTS - In Rhode Island protective covenants are usually put in place by developers or previous owners to insure that the actions of one owner do not adversely effect the others.  Be aware that protective covenants can expire. If the area you are considering has protective covenants, ask a RI attorney review them to determine how long they have been in effect and when they expire. Read association documents to learn about private restrictions or easements that may affect your use of the property. Association rules and regulations are created and enforced by association boards and committees.10. PUBLIC RIGHTS OF ACCESS – Check to see whether the public has the right to cross your property to access the water.  Check municipal plat maps and CRMC public access maps to determine whether there is a public way on or near your waterfront property.If all these things seem manageable, you can start your waterfront home search here.  Once you settle on &quot;The One,&quot; negotiate that deal, and start enjoying all the wonderful benefits of life by the sea in Rhode Island.



 

 
 ]]> </description>
    <pubDate>Mon, 17 Jan 2011 12:34:00 -0500</pubDate>
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<item>
    <guid>https://www.hoganassociatesre.com/blog/my-new-ipad-a-teenager-upgrade.html</guid>
    <link>https://www.hoganassociatesre.com/blog/my-new-ipad-a-teenager-upgrade.html</link>
        <author>leslie@hoganri.com (Leslie Hogan)</author>
        <title>My New iPad - A Teenager Upgrade</title>
    <description> <![CDATA[ 
Last fall, after my college-bound daughter absconded with my laptop, I looked for an economical replacement and settled on an iPad.  At first, I found it limiting compared to my souped up PowerBook. Over the holidays, however, I became one with my new device, and it has dramatically changed and improved the way I get information. I now receive virtually all my news online; I am reading more than I have in years, and I am learning things at a pace that... well... It's exhilarating. Really.I described this epiphany to John Abell, an intrepid early adopter from Portsmouth who runs a local Apple users' group. He was delighted to have another convert, and I was only mildly deflated when he announced he now had over 600 apps I find this astonishing especially because John - a benevolent gear head if ever there was one - is on the north side of 70. A good number of his users' group members (including my dad who, at 82, is no slouch when it comes to his &quot;computa&quot;) are also well into their golden years.


According to the Pew Research Center, the Internet is now the main domestic and international news source for 65 of 18 - 29 year olds, 49 of 30-59 year olds, 31 of 51-64 year olds and 14 of the 64+ crowd.It seems to me a seismic shift in these user statistics is happening on Aquidneck Island. Last night at a meeting of my investment group all but one of us women-of-a-certain-age arrived with a shiny new tablet.John Lennon was right. The Revolution will not be televised.
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    <pubDate>Thu, 06 Jan 2011 09:41:36 -0500</pubDate>
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