As fall fast approaches, we are seeing the real estate market undergoing many changes. Most particularly, lenders are going out of business and loan guidelines are changing.

Are you worried about your lender? If you already have a home and a mortgage, your payments will apply to your home. Even if your lender goes out of business publicly your loan will remain intact. You will still have to make payments. Your principal part of your payment will apply as well as the interest deduction.

To insure your payment records stay intact, keep good personal records. Request an amortization schedule and mark off your payments. Log your check number and date paid. Keep track of your interest deduction and principal and compare to the year end results. By doing this you are protecting yourself.

Now if you are trying to get a loan, the path has become much more difficult. Not only do you need a good credit score, you have to have a good history. NO LATE PAYMENTS within the last year. You may also need some down payment of 3-5% in order to get financing. The days of zero down are very limited. FHA and VA are coming back into style as they allow some variance on credit issues.

In summary, it is more important than ever to maintain good credit. If you have a mortgage, keep it current and on time. If you are to be a new buyer, see a lender and check your credit. Identify any issues and get them addressed. In the meantime, if you have any questions, please call me at 719-593-2963 or email me at theteam@maecker.com.

Thanks,
Brian

What is it? Is there a mortgage crisis or a general slow down?

I think we are teetering on the edge of some serious home financial issues not only in Colorado Springs but the entire United States. I visited Google this morning and typed in “Mortgage Crisis” and found over 14 million matches. There must be something going on. I spoke with a stock broker yesterday and he said Countrywide Mortgage looks like they are steering clear of bankruptcy. Last week, American Home Mortgage defaulted and did not fund many of their new loans.

So what do we do? From what I am reading and seeing in the market, people are defaulting on ARM loans (adjustable). Banks are forcing the customers into foreclosure and subsequently the banks are struggling with default themselves. I would think the banks need to readjust the returns they want to make and then adjust the mortgage they have out. If they did that, the foreclosures would drop, inventory would drop and then confidence and the economy would return.

I’m probably too simplistic, but it works for regular investors when we have to lower rents. Some money is better than no money. It’s simple supply and demand. Too many foreclosures equal big losses for banks too. They need to grasp this principle of some money is better than no money.

Thanks, Brian
www.maecker.com  

Hi Folks,

I just finished reading an article in today’s Gazette. What an article of doom and gloom! The article states that Colorado Springs has lost 4,100 jobs and 174 million dollars in revenue. Unfortunately, I believe it.

This is what is directly affecting the home sales market in Colorado Springs. Intel has done a large layoff and we are missing 18,000 troops who support the local business. Adding to the fact the economy is tight, is that most employers are not giving wage increases.

So what can we do? Support your local companies. Yes, they may be a little more expensive, but you’re supporting someone that will support you. Think positive. Know that the economy is correcting, not tanking. Know that when you buy a home, it’s a long term investment. If you look at what homes sold for 10 years ago, it is very obvious real estate is a good investment.

Please call us at 888-593-2963 or visit my website at www.maecker.com for a private consultation. We’ve sold 100 homes so far this year and we are looking for more to sell.

Thanks,
Brian

*Based on an article on Gazette.com, printed on the front page of the business section.

I have just come upon my third house in a row that has tested positive for radon. All three were in areas of Colorado Springs that I wouldn’t have thought radon possible. The areas were central Briargate, Pine Creek, and eastern El Paso County. All areas thought to be sandy and free of radon. Typically, we have always found radon on the city’s west side, but it appears it can be everywhere.

What is radon? Radon is a colorless odorless gas that emits from the ground from decomposing granite with moisture; granite decomposes and creates radon. Radon can harm you and possibly cause cancer. According to the federal government, the maximum allowed tolerance is four Picocuries. Which, in English, means four parts per million. If a home tests over four, it should be mitigated.

Mitigation of radon from a house is relatively easy and inexpensive. The home is tested by measuring devices such as canisters or electronics. The test lasts two days and typically costs $100-$150. To mitigate a radon problem, the basement and or peripheral drain system is vented with a fan system. This venting sucks the gases out from the foundation to the outside of the home. The costs for these systems run from $900-$1,300.

If you are considering buying or selling a home and have concerns about radon, contact a real estate professional such as The Brian Maecker Team. We can be reached toll free at 888-593-2963 or at our website at www.maecker.com.  

Thanks,
Brian