Posts Tagged ‘United States Department of Housing and Urban Development’

Nevada Housing Division (NHD) Down Payment & Closing Cost Loan – Storey and Washoe County

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Maximum Assistance or Loan Amount

$4,500

Eligible Properties

Maximum Sales Price

$367,974

Geographic Coverage

Storey County, Washoe County

Eligible Borrowers

Maximum Annual Household Income by Household Size

1-2 = $84,600, 3 or more = $98,700

Limitations

Eligible property types are New Construction or Existing, Single-Family residences. Must attend a 6-8 hour HUD approved approved homebuyer education course. Must be used in conjunction with NHD’s First Time Homebuyer Program first mortgages (FHA or VA financing )

Min Buyers Contribution

N/A

Home Buyer Education

Required

Maximum Assets Test

Not to exceed $5000 excluding retirement or pension accounts.

Purpose/Use of Assistance

Down payment and closing costs

Home Buyer Obligations

  • Borrower must occupy property as primary residence.

Loan Terms

Product type

Financed 2nd mortgage

Repayment Terms of the Loan or Assistance

20-year amortizing, fixed-rate

Interest Rate of the Loan or Assistance

7.00%

Approved 1st Mortgage Products

FHA and VA only (Conventional first mortgage not eligible for DPA and RHS has suspended loan registrations)

May be combined with the following programs (if they also appear in these search results).

Incentives for Occupation

N/A

Special Needs Assistance

N/A

Special Requirements

N/A

Other Details

Date last updated by agency rep

2012-04-02

As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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USDA Single Family Guaranteed Loan Program – Washoe County

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Benefits

  • Nothing down, flexible underwriting.

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.  In addition, applicants must have reasonable credit histories.

Terms: Loans are for 30 years.  The promissory note interest rate is set by the lender.

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost.   Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.  Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

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As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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Nevada Housing Division (NHD) First Time Homebuyer Program

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Eligible Properties

Maximum Sales Price

$449,747

Geographic Coverage

Program Boundaries

Eligible Borrowers

Maximum Annual Household Income by Household Size

1-2 = $84,600, 3 or more = $98,700

Limitations

Property must be located within a specific target area in the county of Washoe. Eligible property types are new Construction or Existing, Single-Family residences Homebuyer must attend a 6-8 hour HUD approved approved homebuyer education course Must be a first time homebuyer but there are HUD exceptions and qualified veterans excepted

Min Buyers Contribution

N/A

Home Buyer Education

Required

Maximum Assets Test

Max is 50% of purchase price, unless disabled or elderly and such assets are primary source of income

Purpose/Use of Assistance

Below-market rate financing

Home Buyer Obligations

  • Borrower must occupy property as primary residence.

Loan Terms

Product type

1st mortgage

Repayment Terms of the Loan or Assistance

30-year, fixed-rate, fully amortizing

Interest Rate of the Loan or Assistance

See website for current rates

Approved 1st Mortgage Products

FHA 203(b), streamline 203(k), VA, RHS, or Fannie Mae: My Community

Possible Recapture tax if home is sold or refinanced within first 9 years of ownership

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Search Real Estate

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As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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Buy a Reno Home with $100 Down & Recieve $5000 Cash Grant for Closing Cost

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$100 Down Payment Rules & Regulations

First, visit a Realtor that is licensed to sell HUD homes in your area. Below are the rules for buyers as specified by HUD:

  • The home you purchase must be your primary residence and you must live there at least one year.
  • You must offer HUD’s full asking price.
  • You will have to obtain an FHA-insured loan that has a fixed rate for either 15 or 30 years.
  • Your debt to income ratio must be 31%/43%.
  • The maximum amount of the loan can’t exceed $362,790.
  • You must have a credit score of 580 or higher and if you have had a recent bankruptcy, it must have been discharged at least 24 months prior to your HUD home purchase.
  • You must have two years of employment history.
  • FHA mortgage insurance must be rolled into your loan.
  • Your Realtor must pre-qualify you by submitting HUD’s 100dollarHUDHome Offer to Buy.

This offer is good on owner-occupied purchases only meaning you must use the home as your primary residence and can be used on single-family homes, condos, and town homes. This offer is not available for investors who wish to buy and rent out a HUD home.

Where Do I Find HUD Homes?

Most Realtors are licensed to sell HUD homes and have access to their house listings. HUD releases all new home listings every Friday morning and from that point a ten-day Exclusive Listing Period is in place in which only owner-occupied buyers may bid. HUD homes are priced at market value price so to ensure you have a chance of winning the bid, make sure you offer the market price and have your Realtor guide you.

In addition to the $100 down payment, HUD also offers the 203k Major and Light Rehab loans to help buyers purchase a HUD home that may need some repairs. The best part of this is that you can roll the cost of the repairs into your FHA-insured loan and for the light rehab loan will cover repairs up to $35,000. The major rehab loan will cover repairs over $35,000 and it can include almost anything including bathroom, kitchen, and utility room appliances.

Read more: http://www.brighthub.com/money/home-buying/articles/28618.aspx#ixzz1S7MIJO5b

Every NSP2 home for sale includes a $5000 Cash grant to be used for closing costs and a $15,000 interest free forgivable loan.   Applicants may also qualify for a WISH grant, which could provided up to an additional $15,000 forgivable loan.  Applicants can also purchase a Mortgage Credit Certificate through the Home at Last MCC Program offered by Neveda Rural Housing Authority

NSP2 targeted income groups

NSP2 activities are targeted towards two groups of people. Potential homeowners will be people making between 50% and 120% of the Area Median Income (AMI), and potential renters will be people making less than 50% of AMI. The AMI chart for Washoe County is as follows(FY 2011 Income Limits):

Area Median Income (AMI)

Family Size 1 2 3 4 5 6 7 8
50% AMI 24,700 28,200 31,750 35,250 38,100 40,900 43,750 46,550
120% AMI 59,200 67,700 76,150 84,600 91,350 98,150 104,900 111,650

http://www.renoha.org/index.php?id=purchase

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

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Escrow Accounts: What’s the Deal?

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http://members.houselogic.com/articles/escrow-accounts-whats-deal/preview/

By: Susan B. Weiner

Published: October 22, 2010

Does your escrow account ever cross your mind? Probably not. But forgetting to monitor it can lead to lost money and a big headache.

Escrow accounts: lenders love them; you might not

As handy as they are, you’ll find some significant hitches:

  • You lock up your money before your tax and insurance payments are due, since your lender is taking the money out each month, often long before the tax payment is actually due.
  • Your lender usually doesn’t have to pay you interest on your escrow account—it varies by state.
  • Your lender may screw up paying taxes or insurance, and even though it has to fix mistakes, you have to make the time and effort to follow up.
  • There may be tax advantages to timing your property tax expenses—but you can’t do that if you’re paying a flat fee in escrow each month.

But your lender may insist on an escrow account because it:

  • Helps guarantee your insurance and taxes will be paid.
  • Ensures your lender will get the first claim on your house if you default, ahead of the local government.

In fact, your lender may do you the honor of charging you a flat fee for opting out of an escrow account, or it will add 0.25% to 0.5% to the loan amount if you decline to use an escrow account.

How to manage your escrow account

Your lender has to give you an annual escrow account statement and refund any available balance when you sell your house or refinance your mortgage. Check your escrow account statement carefully:

  • Make sure everything adds up. “If I have my escrow statement, my property tax bill, and my homeowner insurance declaration page, and everything matches up, then I’m fine,” says Debbie Siegel, president of Westchester Mortgage in Newton, Mass.
  • Check the size of the escrow account. Lenders are allowed to keep a reserve of no more than two months in payments in most states, and in some situations it’s even less. Your REALTOR® or lawyer can give you the skinny in your case.
  • Contact your lender in writing if you find a problem in your escrow account. If your lender missed an insurance payment, it should pay any late fees as long as your mortgage payments are current, according to the U.S. Department of Housing and Urban Development. If your insurance is canceled as result of your lender’s late payment, you can sue your lender.
  • Know your rights. Your lender must acknowledge your letter within 20 days and try to fix your problem within 60 days. If you’re still not satisfied, file a complaint with HUD.

Don’t worry, however, if your escrow account balance is temporarily negative. It’s probably due to a recent increase in your taxes or insurance. Your lender will pay your taxes and insurance, although you will need to reimburse your lender for the shortfall.

A final word: Usually basic home owners insurance will be paid out of an escrow account. If you have extra coverage for your original Matisses, for example, you may need to pay that premium directly to your insurer.

Susan B. Weiner has written on financial topics for Bottom Line/Personal, Financial Planning, Wealth Manager, and other national publications for more than 15 years. She learned firsthand that when your house combines two lots, your escrow account may initially fail to pay the tax bill on the second lot.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

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Facing Foreclosure Counseling Service May Help

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What type of help can a homeowner expect to get from a counseling service and why is it such an important first step?

The HUD certified counselors review the home owner’s overall financial situation and then guide them to the solution that best suits their individual situation. Everything from assisting homeowners in reviewing their monthly budget to determining whether loan modification or other options are appropriate. They also assist the homeowner in submitting the required documentation to the homeowner’s lenders. They can guide them through the entire process including credit repair. It’s important to note that every individual or family’s situation is unique and it takes a trained counselor to look at the situation and discuss with the homeowner their options.

Is there help for homeowners who have already gone through foreclosure and need help getting back on track?

Many of the counseling agencies, as well as credit counseling agencies, can assist homeowners to get back on track with a budget and the steps to take to repair their credit. Their goal is to have these people become homeowners again in the future.

Seek Free Consultation

HUD Approved Counseling Agencies
Agency Name Address Phone Website Email
Consumer Credit Affiliates 3100 Mill Street, Ste. 111, Reno, NV 89502 775-337-6363 www.ccanevada.org cca@ccanevada.org
Nevada Legal Services 650 Tahoe Street, Reno, NV 89509 775-284-3491 www.nlslaw.net
NID Housing Counseling Agency 1000 Bible Way, Ste. 72, Reno, NV 89501 775-322-5695 www.nidonline.org help@teamworknevada.org
Washoe County Senior Law Project 1155 E. Ninth Street, Reno, NV 89512 775-328-2592 www.washoecounty.us/seniorsrv/legal/srhousing.htm slawproj@washoecounty.us

Other HUD approved Credit Counselors in the State of Nevada can be found at: www.hud.gov

Types of documents you will need to locate and bring to your appointment:

  • Any correspondence from the mortgage company or its attorney, even if it’s unopened
  • Any documentation from the courts or the sheriff regarding a foreclosure
  • Most recent pay stubs for all employment
  • Last two months of all bank stat ements (all pages)
  • Last year’s federal income tax return
  • Property tax bill
  • Copy of all household bills, (ie.car payment, insurance, utility bills, credit card bills)
  • Hardship Letter

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Search Real Estate

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

read more at http://www.foreclosurehelpfornevadans.org

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When Facing Foreclosure “Things to Avoid”

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http://www.foreclosurehelpfornevadans.org/things_to_avoid.php

  • Beware of foreclosure rescue scams – Help is Free!
  • Beware of anyone who asks you to pay a fee in exchange for counseling service or modification of
    delinquent loan.
  • Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
  • Never make a mortgage payment to anyone other than your mortgage company without their approval.
  • Assistance from a HUD-approved housing counselor is FREE.

For more information go to: http://fightfraud.nv.gov/

How to Report Scams?

Through Preventloanscams.org, complaints filed online are added to a national complaint database and are forwarded to the appropriate law enforcement center for review. In addition, HUD has directed its local fair housing and housing counseling grantees to begin reporting alleged loan modification scams via the website.

Loan Modification

Is it Legitimate?

Don’t fall for scammers promising mortgage modification services they cannot deliver. Homeowners can check with the Better Business Bureau or the Nevada Department of Business and Industry to research licensed loan modification firms. The law requires licensing and bonding of loan modification providers. These licensed companies and agents are permitted to accept up-front fees, as long as they deposit them into a trust account and only withdraw them when the agreed upon services are provided. Before turning over ANY money or signing ANY paperwork, call the Division of Mortgage Lending at (775) 684-7060 in Carson City to see if the company is licensed and bonded through the Division of Mortgage Lending.

Get the Facts:

You can verify the legitimacy of loan modification providers by going to: http://mld.nv.gov/ and click on the button “List of Eligible Loan Modification Companies.”

Get the Facts:

You can verify the legitimacy of loan modification providers by going to: http://mld.nv.gov/ and click on the button “List of Eligible Loan Modification Companies.”

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

Search Real Estate

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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U.S. Consumer Panel, HUD Change Course on Chinese Drywall

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By Duane Marsteller

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RISMEDIA, March 22, 2011—(MCT)—For more than a year, two federal agencies have urged homeowners with Chinese drywall to replace all electrical wiring when fixing their homes. Recently, the U.S. Consumer Product Safety Commission and the U.S. Department of Housing and Urban Development altered course—lending credence to a homebuilder group’s protocol, conflicting with a court-monitored national remediation program and drawing criticism from some quarters.

The federal agencies revised their drywall remediation guidelines to say that some, but not all, electrical wiring and components must be removed. The change stems from additional laboratory testing of electrical components that found that long-term exposure to hydrogen sulfide—the primary gas emitted by the tainted drywall—did not always substantially worsen the risk of smoke or fire.

“In general, residential electrical system components appear to be relatively tolerant of the corrosive environment created by problem drywall, if the system is installed properly,” a commission report says.

The commission and HUD also added 2009 to the range of years in which the corrosive drywall was installed in U.S. homes. The previous ending year was 2008. Drywall installed in 2009 was imported two to three years earlier, said the agencies.

The drywall, mostly imported from China, has been blamed for emitting sulfuric gases that corrode electrical and metal components, produce noxious odors and cause health ailments such as runny noses and headaches.

Concerned that corroded electrical wires could lead to a higher risk of fire, the commission hired Sandia National Laboratories in New Mexico to conduct long-term testing. The lab purchased electrical outlets, circuit breakers, wiring and other electrical components, then subjected them to eight weeks of testing that simulated 40 years’ worth of corrosive conditions that could be found in homes with the problem drywall.

Their findings: Some components corroded faster than others, depending on how often they were used, how well they were installed or connected, and other factors. Based on that, officials revised the guidelines to recommend replacing the following items that tend to corrode faster:

• Fire-safety alarm devices, including smoke and carbon monoxide alarms.
• Electrical distribution components such as receptacles, switches and circuit breakers.
• Gas service piping and fire-suppression sprinkler systems.

Other electrical wiring, such as that behind walls, also can corrode but not severely enough to always warrant their automatic removal, said both the agencies and laboratory.

But that recommendation was heavily qualified.

“While no fire, smoking or other safety events occurred during the course of this experiment, CPSC staff and Sandia are mindful of the limited scope and controlled conditions of this experiment,” they say in a 89-page report of their findings. “The experiment does not, and could not, possibly capture every permutation of conditions, wiring, installation, brands, environmental conditions and other possible confounding factors that are actually present in the affected houses.”

That concerns Mike Foreman, a Sarasota, Fla., construction consultant who has been researching the corrosive drywall for more than three years.

Foreman says the lab results are incomplete, noting that testing was limited to 110-volt outlets and wires with PVC insulation. Further testing needs to be done on 220-volt outlets and wires with other types of insulation for starters, he contends.

“It’s nice that they came out with this information, but it’s lacking detail,” says Foreman. “All it does is just add confusion.”

By revising their guidelines, the agencies now differ from those issued by a federal judge who is overseeing a consolidated court proceeding on Chinese drywall.

In a pair of rulings last year, U.S. District Court Judge Eldon Fallon said all electrical wiring should be removed as part of any repairs done under the court case. A drywall manufacturer is now following that standard as it fixes 300 homes in a pilot program that could lead to a national settlement.

Several attorneys in the case say it is unlikely Fallon will change his requirements, which can cost $100,000 per home to implement, as a result of the agencies’ revision.

But the agencies now are more in line with recommendations the National Association of Home Builders issued earlier this week. Some have criticized the builders’ protocol because it does not recommend the removal of all wiring.

“Now, we have complete alignment and a sense of relief for homeowners and builders that, if there is no corrosion in the wiring, it doesn’t necessarily have to be removed,” says Katherine Cahill, product risk services managing director for Marsh Risk Consulting, who helped develop the NAHB’s standards.

(c) 2011, Bradenton Herald (Bradenton, Fla.)

Distributed by McClatchy-Tribune Information Services

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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Realogy CEO Takes Part in U.S. Government Conference on the Future of Housing Finance

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WASHINGTON - MARCH 18:  U.S. Secretary of Tran...
Image by Getty Images via @daylife

RISMEDIA, August 18, 2010—Realogy Corporation, a global provider of real estate and relocation services, announced that its chief executive officer Richard A. Smith traveled to Washington, D.C., today to participate in the Conference on the Future of Housing Finance. The invitation-only event is being hosted by Secretary of the Treasury Timothy Geithner and Secretary of Housing and Urban Development (HUD) Shaun Donovan.

The conference was designed to provide a forum for public input as the Obama Administration works to develop a comprehensive housing finance reform proposal for delivery to Congress by January 2011. In addition to the panel discussions moderated by Secretaries Geithner and Donovan, the conference included a handful of breakout sessions with a diverse group of experts, including Smith.

“We applaud the Administration’s focus on reforming the housing finance system and for their process of engaging key stakeholders in this ongoing dialogue,” said Smith, who has overseen Realogy’s operations since 1996. “We are proud to participate in this conference to share Realogy’s industry perspective as well as to represent all of the brokers and sales associates who are affiliated with our respective real estate franchise brand networks.”

Smith was invited to share his insights as part of Breakout Session One: “Key Players in a Reformed System: Role of the Private Sector and of Government.” The session was co-moderated by Diana Farrell of The White House, who serves as Deputy Assistant to the President on Economic Policy and Deputy Director of the National Economic Council; Jeffrey Goldstein, Under Secretary for Domestic Finance at Treasury; and Raphael Bostic, Assistant Secretary for Policy Development and Research at HUD.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

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Additional Support for Targeted Foreclosure-Prevention Programs to Help Homeowners Struggling with Unemployment

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Home For A Moment
Image by The Voice of Eye via Flickr

RISMEDIA, August 13, 2010—Through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund), the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Additionally, the U.S. Department of Housing and Urban Development (HUD) will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance—for up to 24 months—to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.

“We remain committed to helping struggling homeowners, and this program will provide additional assistance to states hit hardest by unemployment,” said Assistant Secretary for Financial Stability Herb Allison. “This is part of the Administration’s comprehensive housing policy that has helped to stabilize a fragile housing market and allows responsible homeowners the chance to reduce their monthly mortgage payments to affordable levels.”

“HUD’s new Emergency Homeowner Loan Program will build on Treasury’s Hardest Hit initiative by targeting assistance to struggling unemployed homeowners in other hard hit areas to help them avoid preventable foreclosures,” said Bill Apgar, HUD senior advisor for Mortgage Finance. “Together, these initiatives represent a combined $3 billion investment that will ultimately impact a broad group of struggling borrowers across the country and in doing so further contribute to the Administration’s efforts to stabilize housing markets and communities across the country.”

Hardest Hit Fund
President Obama first announced the Hardest Hit Fund in February 2010 to allow states hit hard by the economic downturn flexibility in determining how to design and implement programs to meet the local challenges homeowners in their state are facing.

Under the additional assistance, states eligible to receive support have all experienced an unemployment rate at or above the national average over the past 12 months. Each state will use the funds for targeted unemployment programs that provide temporary assistance to eligible homeowners to help them pay their mortgage while they seek re-employment, additional employment or undertake job training.

States that have already benefited from previously announced assistance under the Hardest Hit Fund may use these additional resources to support the unemployment programs previously approved by Treasury or they may opt to implement a new unemployment program. States that do not currently have Hardest Hit Fund unemployment programs must submit proposals to Treasury by September 1, 2010 that, within established guidelines, meet the distinct needs of their state.

The states eligible to receive funds through this additional assistance, along with allocations based on their population sizes include:

Alabama – $60,672,471
California – $476,257,070
Florida – $238,864,755
Georgia – $126,650,987
Illinois – $166,352,726
Indiana – $82,762,859
Kentucky – $55,588,050
Michigan – $128,461,559
Mississippi – $38,036,950
Nevada – $34,056,581
New Jersey – $112,200,638
North Carolina – $120,874,221
Ohio – $148,728,864
Oregon – $49,294,215
Rhode Island – $13,570,770
South Carolina – $58,772,347
Tennessee – $81,128,260
Washington, D.C. – $7,726,678

HUD Emergency Homeowners Loan Program
This new program will complement Treasury’s Hardest Hit Fund by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. These areas are still being determined.

The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;

2. Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;

3. Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD will announce additional details, including the targeted communities and other program specifics when the program is officially launched in the coming weeks.

For more information, visit www.hud.gov.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

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