RADON

Detecting and Addressing Radon Contamination in the Home Many homeowners are increasingly concerned about the possible presence of radon in their homes – and with good reason. You can’t see, smell, or taste radon, but it is the leading cause of lung cancer deaths among nonsmokers in North America, and it could be present at a dangerous level in your home. The good news is that if radon is detected, steps can be taken to remedy the problem. January has been designated National Radon Action Month; learn the facts and take action. WHAT IS THE SOURCE OF RADON? Radon is naturally occurring odorless, colorless, radioactive gas that is formed by the ongoing decay of uranium in soil, rocks, sediments, and even well or ground water. While radon that escapes into the atmosphere is not harmful, dangerously high concentrations can build up indoors, exposing residents to possible health risks. HOW DOES RADON ENTER THE HOME? Radon gas can migrate into the home in several ways. Openings or cracks in basement walls or floors are common avenues. Sumps, basement drains, and spaces between gas or water fittings can also allow radon into the structure. HOW CAN MY CLIENTS FIND OUT ABOUT RADON IN A HOME THEY ARE CONSIDERING FOR PURCHASE? A Pillar To Post Home Inspector can conduct a Radon test as either part of the home inspection process or on its own. An inspector will set up the testing equipment and report on the results once the proper measurement procedure is complete. If an elevated level of radon is detected, steps can be taken to lessen the concentration inside the home. REDUCING THE LEVELS OF RADON IN THE HOME Radon mitigation methods can include sealing likely entry points, improving ventilation, and a process called soil depressurization, which vents air from the house back into the surrounding soil, reducing the level of radon that can enter the home. Professional mitigation services can provide recommendations for a home’s specific conditions. For more information about home inspection and radon testing, please call our office.

 

Tom Capuano And Our Entire Service Team of Professional Certified Inspectors, State Licensed Radon Testers and Customer Service Staff     Proudly Serving You and Your Clients For Over 10 years Home Inspections * Termite Inspections * Radon Tests * Mold Screen Testing     Call us or visit our web site to schedule an inspection anytime! Click to visit our web site!     513-771-6689

Ohio Real Estate Commission issues warning

Warning from the Ohio Real Estate Commission: Never Provide a Lock-Box Code to a Potential Buyer

The Ohio Real Estate Commission considers providing a potential buyer with a lock-box code and allowing them to view a property unattended a serious offense. In fact, the Commission recently ordered a licensee to serve a 10-day suspension, pay a $600 civil penalty, and complete three hours of education in ethics for providing a lock-box code to a client which resulted in the client’s unsupervised entry into the property.

A licensed real estate agent should always be present at showings and should never provide a lock-box code to a potential buyer. If you are unable to attend a previously-scheduled showing, you should have another licensed agent attend on your behalf or simply explain the situation to your client and reschedule the showing.

U.S. orders end to dual-track process

Acting Comptroller of the Currency John Walsh last week told banks to stop foreclosure proceedings if the borrower is starting or in the midst of a loan-modification program.

This dual-track system has hastened foreclosure for many borrowers who were caught between instructions to pay lower payments during a loan-modification trial period and punishing fines for failure to pay the full amount if the loan mod failed.

One regulator disagreed with the change, saying that lenders needed to be able to press forward with foreclosures, especially when borrowers clearly weren’t going to meet loan-modification standards.

Source: NAR

5 Predictions for 2011

Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:

1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0% to 0.25% for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5% throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4% in 2011.

2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.

3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.

4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.

5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings–known as the “seriously delinquent rate”–generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.

Source: Freddie Mac

No Foreclosures during the Holidays

Fannie Mae and Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from Dec. 20 through Jan. 3.

“If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays,” says Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.

Most of the large banks, including Bank of America, J.P. Morgan Chase, and Wells Fargo already observe a moratorium through the New Year, unless the foreclosure involves an investor who chooses not to observe the holiday policy.

Source: NAR

Shadow Inventory Increases Likely

The volume of bank-owned properties and potential foreclosures not listed for sale is up 10 percent to 2.1 million compared to August 2009, according to new estimates from research firm CoreLogic.

Together with the 4.2 million inventory of listed homes, which is unchanged from a year ago, CoreLogic estimates the supply of homes at 6.3 million or about 23 months at the current sales pace.

Some experts say these numbers are conservative. Analysts at Barclays Capital believe there are another 3.76 million homes somewhere in the foreclosure process, down from a peak of 4.22 million at the end of February.

Source: The Wall Street Journal, Nick Timiraos (11/22/2010)

New Lending Guidelines Benefit Young Borrowers

Under Fannie Mae’s new lending guidelines, which will take effect Dec. 13, securing a mortgage will become easier for some borrowers and more difficult for others.

These new rules will allow buyers to use gifts and grants from nonprofit groups for their minimum 5 percent down payment. Freddie Mac is also considering similar new guidelines, according to spokesman Brad German. Borrowers previously were required to contribute a minimum 5 percent down payment from their own funds, with additional down payment money permitted from a gift.

These new rules are “definitely going to help upgrade buyers and young couples who for whatever reason don’t have enough money and are getting some from their families,” said Edward Ades, the owner of broker Universal Mortgage. The gift rules apply only to single-family principal residences and cover mortgage amounts in excess of 80 percent of the property’s value. The loan balance also has a limit of $729,000 in high-cost areas like New York City and $417,000 in other areas.

At the same time, Fannie Mae is cracking down on debt-to-income ratios, with the maximum ratio for those seeking a conventional mortgage set to drop from 55 percent to 45 percent under the new guidelines. Fannie Mae is also increasing its scrutiny of payment histories on revolving debt, and buyers who have missed a payment will have 5 percent of the total balance added to their ratios.

Under the new rules, borrowers who have gone through foreclosure will be excluded from obtaining a Fannie-backed loan for seven years, an increase from the previous limit of four years.

Source: The New York Times, Lynnley Browning (11/21/10)

7 Trends That Will Drive the Future of Housing

Hanley-Wood’s ProSalesOnline.com identifies seven trends that the magazine’s editors believe will have the biggest impact on housing in 2011.

1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36 percent to $52 per square foot.
2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.
3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.
4. There are 81 million “Echo Boomers” who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.
5. By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).
6. Make room for the “Sandwich Generation” – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.
7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.

Source: ProSalesOnline.com (October 2010)

Big Banks Fixing Foreclosure Processes

Bank of America and J.P. Morgan Chase told the Senate Banking Committee on Tuesday that they were making changes in their foreclosure processes after reviews found areas that needed improvement.

Barbara DeSoer, president of Bank of America’s home loan business, said the company has set up a new form for creating foreclosure affidavits.These are documents that summarize the facts of a foreclosure case such as a borrower’s name and total amount owed.

Those documents, she said, “will be individually reviewed by the signer” and notarized. The company, she said is “carefully restarting” the foreclosure process.

The Congressional Oversight Panel, however, warned in a report Tuesday that the foreclosure document problems “may have concealed much deeper problems in the mortgage market that could potentially threaten financial stability.”

A Treasury spokesmen disputed that claim, saying that 11 federal agencies are investigating the issue and they don’t believe it represents a threat to the U.S. financial system.

Source: Associated Press, Alan Zibel (11/16/2010)

Banks, Congress to Face Off on Foreclosures

Banks will appear before the Senate Banking Committee on Tuesday to explain sloppy mortgage paperwork, but observers aren’t expecting much Congressional harmony on the topic. Senators are likely to press lenders on the question of whether “robosigners” are evidence that modifying loans is better than eviction.

On the House side where lenders are expected to appear before the Financial Services Committee on Thursday, U.S. Rep. Spencer Bachus, an Alabama Republican and next year’s front-runner for chair of the panel, has criticized federal regulators instead of bankers. “It is disappointing that the regulators didn’t catch this before the media,” he wrote in an e-mail.

Outsiders see only gridlock. “I have no hopes for this Congress whatsoever,” said John Taylor, president of the National Community Reinvestment Coalition.

Source: Reuters News, Dave Clarke and Joe Rauch (11/15/2010)