Avoiding Foreclosure - What You Can Do

The rate of residential home foreclosure filings dropped dramatically in April, down 14.3% from the previous month, according to Foreclosures.com. Still, year-to-date the foreclosure-filings rate is higher than the same period a year earlier.

What to Do:  Depending on your lender, you may be able to restructure your mortgage if you're late in making monthly payments. The delinquent mortgage payments may be added to the mortgage balance, or the homeowner could be given additional time to make catch-up payments. If you can no longer afford your adjustable-loan rate, don't count on bankruptcy court to save your home.

Changes in the bankruptcy law in 2005 have made it harder for homeowners to qualify for a "fresh start" and prevent foreclosure. Instead, work with a qualified credit-counseling service to restructure your non-mortgage debt to free up cash-flow. Federal help may also soon be on the way: Mortgage-finance giants Fannie Mae and Freddie Mac are planning to introduce alternative financing to help homeowners with subprime loans avoid foreclosure.

Mortgages: Lenders Tighten Standards

Mortgage lenders are beginning to scrutinize borrowers more closely, causing some loan applicants, even those with good credit, to face higher costs and more hassles.

As the number of delinquent mortgages climbs, lenders have tightened their standards for issuing loans, including such well-publicized moves as raising minimum credit scores and cutting back on 100% financing and low-documentation loans. Now, some lenders are probing more intently would-be borrowers' finances. They are taking a tougher look at how much the property a borrower wants to buy is worth. They are peering further into clients' pasts for credit problems and requiring more in-depth reviews of borrowers who say they are self-employed.

Mortgage lenders say they are tightening standards in response to pressure from mortgage insurers, investment banks and investors who buy mortgage-backed securities. Spooked by rising delinquencies, Wall Street is now pushing lenders to beef up their underwriting.  Looser standards weren't much of a problem when home prices were climbing. But as the housing market has cooled, more borrowers are winding up in trouble.

Lenders are also delving deeper into borrowers' employment and credit histories.  In recent years lenders would often look back just 12 months at a borrower's mortgage payment history.  Now, many lenders are looking at two years' of mortgage payments and reviewing information on credit card payments and installment loans.

Are you considering a mortgage?  Does news of tougher standards make you think twice about applying?  We'd love to hear your thoughts and comments about this.  Just click the "Comment" link below and tell us what you think.

Home Builders' Confidence Falls

Home builder confidence fell for the third straight month in May and executives in the battered sector now believe they'll have to wait until next year for even a sluggish recovery to begin.

According to a survey by the National Association of Home Builders, the confidence index sank to 30 in May from 33 in April, matching the September reading that had been a 15-year low at that time.  The subindex measuring builders' view of current market conditions fell to the lowest level since February 1991, while their view of the market six months from now and their perception of buyer demand both dropped to match the 15-year lows hit in late 2006.

The association is now projecting that home sales and housing production will not begin improving untl late this year, and they are expecting the early stages of the subsequent recovery to be sluggish.

Relocation - Housing Markets are Causing Hesitation

Relocation experts say common reasons job candidates hesitate to uproot often has to do with people's reluctance to leave their comfort zones, their families and their friends.

A relocation survey on mobility trends found that family issues were still the dominating reason employees turned down a job that would require relocation — 65% of those surveyed believed that to be a top concern.  Sixty-one percent named cost-of-living and housing concerns as a top issue, while 22% said that selling the home, specifically, was a top concern.

For many employers, the addition of these housing-market hurdles for job seekers is coming at a bad time. 

If you do find yourself facing a relocation decision, consider these tips:

• An employee considering a move for a job should be clear on the details of the company's relocation policy before accepting the job.  Any concerns should be directed to the human-resources professional.  Don't be afraid to ask for what you want.
• Know the tax implications involved.  The majority of a relocation package can be considered taxable income; "if a company chooses to cover the tax liability for that benefit, you come out much further ahead."
• Flexible relocation policies might allow an employee to substitute one expense for another, customizing the package to suit the individual's needs.  If, for example, you don't need temporary housing, you might be able to substitute those dollars for the expense associated with storing household goods.  Candidates might negotiate a lump-sum package if they'd rather hold on to the home until the local real-estate market improves.
• If you're selling a house to relocate, realize it's unlikely you'll "make a killing" in many of the current markets.  To ensure a quicker sale, make the cosmetic changes that are necessary before listing the home and price it correctly from the start.

Are you facing a possible job relocation?  If so, we'd love to hear your comments about how the real estate market may or may not affect your decision to relocate.

Home Kits Test for Mold

It's mold season again — for some homeowners, a time of fretting over whether fungus may be secretly growing behind the wallpaper or other places. Companies that sell do-it-yourself mold tests say their simple and inexpensive sampling methods can find a mold problem.  Scientists say some tests are useful while others are a waste of money.

You have reason to suspect mold is in your house if there's been a flood or other moisture source; if there's a musty smell; or if you see something growing.  To grow, mold needs moisture, oxygen and an organic surface.  Common areas include sheetrock walls, wallpaper, carpeting and wood.

To learn more about Home Kits that test for growing mold, how they work and what they promise to do, read the full article here:

Have you had any experience with home kits that test for mold?  If so, we'd love to hear your opinion and feedback.  Leave your comment below by clicking on the 'comment" link.