It's a Matter of Perspective

The news keeps talking about a mortgage induced housing crisis.

Some of us have been around long enough to remember a much tougher mortgage market. In the early 80's the street rate for a mortgage was 17%. That's right boys and girls, 17%.

Granted today if you have poor credit or poor income, you can't get a mortgage at 6 or 6.5%. But crisis - NO. How many people with good credit and good jobs couldn't qualify at 17%.

As the evidence mounts, it seems that today's crisis was caused by 2 things. People who bought homes assuming that the market value of their house could only go up even in the short term and lenders who made the same assumption. With a little dose of reality this "irrational exuberance" has come back to haunt.

Makes me glad to be in Central Pennsylvania where we didn't enjoy the "benefit" of flipping house contracts 3 times before the house was built but we're not seeing the get rich quick home pricing collapse either.

More Tax Relief From Gov. Rendell

Recently, while we wait for property tax relief, the Rendell administration put forth an additional tax of 7 dollars on everyone's homeowner's insurance. For flood prevention work.

Why not just call it an expenditure, from already bloated state budget.

Oh that's right we got tax relief from casino gambling. We did get the reduction? Right? The governor said he got us tax relief.

Can't imagine who the beneficiaries of this new program voted for.

Disturbing Mortgage Trend

From several sources reports of homeowners walking away from their mortgage obligations simply because the value of their home has gone down.
We're not talking about those who due to economic or other hardship can't pay, we're talking about borrowers just deciding not to pay.

Home Buyers and Sellers Should Remeber Maintenance Costs

Consumers should remember that maintenance costs need to be considered when purchasing a home. All homes require constant care. General estimates indicate that every home will require between 1 percent and 3 percent of the home’s value in annual maintenance costs, and this figure does not necessarily include major or emergency repairs.

Prevention Saves Time and Money

The ongoing maintenance of a home is a significant contributor to holding or increasing its value. According to Kathleen Kuhn, president and CEO of HouseMaster, “Homeowners should plan a solid preventive maintenance schedule, so problems can be fixed before they become more costly and damaging. Quite often when we inspect homes, many of the damages we find would have been preventable with some routine monitoring and smaller repairs. But left unchecked, minor concerns grew into more significant defects.”

There are many other benefits for current and potential homeowners when they incorporate preventive maintenance into their annual planning. Preventive maintenance:
Avoids expensive emergency repairs: Contractor fees rise in proportion to the urgency and the hour of the service call.
Saves money and aggravation: Repairs planned for completion during off-peak times are less expensive and stressful.
Minimizes homeowner insurance premiums: Correcting deficiencies before they represent an insurance claim will keep premiums reasonable.
Eliminates costly consequential damage: When major home components, like a roof, fail, the damage to home interiors and furnishings can be substantial.
Homes in good condition sell at higher prices than neglected counterparts.

Create a Maintenance Checklist
Every house is different, but there are some common elements every homeowner can include on a regular maintenance list:
Check the grading and drainage around the foundation
Seal driveway and walkway cracks
Check fencing and gates
Check and trim trees near the house
Check for deteriorating/damaged siding
Check for loose, damaged, or missing roofing and flashings
Clean all gutters and leaders
Check weather-stripping and seals on all windows and doors
Insulate water lines that are subject to freezing
Check condition of the water heater
Check ventilation openings for nests, blockage

While this list is not comprehensive, it’s a good start to identifying some potential trouble spots in any home.
Do Your Own Research
In order to personalize your home maintenance checklist, it’s important to learn as much about your particular home’s operations. Many Web sites and newsletters contain valuable information and tips, and housemaster.com® contains a wide array of resources for homeowners, homebuyers, and home sellers such as a Home Defect Survey, A Preventive Maintenance Checklist, Common Home Concerns Overview, and Home Inspector selection guidelines.

Even if you are not comfortable making repairs on your own, simply learning more about spotting potential problems can help reduce the extent and cost of contractor repairs. Kuhn adds, “More and more homeowners are calling us to inspect the homes they currently own to help them identify potential problems and develop a plan of action for home maintenance. A home is a major investment. We tend to monitor our financial and investment portfolios quite closely, and it’s equally important to monitor the status of our homes.”

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. More home safety and maintenance information is available online at "http://www.housemaster.com"

This information is provided for general guidance purposes only. Neither HMA Franchise Systems, Inc. nor the local HouseMaster® franchise warrants its accuracy and assumes no liability related to its use. Contact the local franchise office and/or qualified specialists for advice pertinent to your specific house or circumstances.
© Copyright 2008 HMA. Each HouseMaster franchise is an independently owned and operated business. HouseMaster is a registered trademark of HMA Franchise Systems, Inc.

Chavez wants to up the stakes

He takes over the oil structure that Exxon created. He tries not to pay what they can agree to (which he calls negotiation).

So Exxon demands arbitration and freezes PDVSA assets in the free world pending the outcome. I wonder why they don't trust someone who said when he was elected that he was not a socialist and that Cuba was a dictatorship.

Now he says he'll cut off oil shipments to all of the U. S. Can't seem to get his head around the idea that Exxon is not the U. S. and the U. S. is not Exxon. We haven't followed his lead to declare that everything belongs to the government.

Now we will see how long he can actually survive without a major portion of his only revenue source since most of the refineries outside of Venezuela, capable of refining Venezuelan crude are in the U. S.

Now We Wait for the Benefits

Now that the stimulus package has passed let's hope I was wrong and that we will actually see the benefits to offset this give away program that we have no way to pay for.

While Congress dithers ....

Maybe Washington gridlock is a good thing?

While our representatives and senators try to see how many ornaments they can Christmas Tree on to a housing/economic recovery bill, the HOPE NOW Alliance has been able to help 2 out of 3 delinquent borrowers.

Let's all remember that no lender ever wants to have to foreclose. They don't want to own homes, they don't want to sell homes.

Once again the private sector is solving the problem while the politicians talk about the problem.

Thanks to WHP Television

For once a local television outlet took the time and effort to ask local real estate experts about what is happening in the Harrisburg Real Estate Market, instead of just mirroring the gloom and doom sky is falling national media.

Of the top 100 default and foreclosure markets none are anywhere in Pennsylvania.

Again Kudos to channel 21

Let's Get Real About Economic Stimulus

As the Washington politicians run around trying to gain votes with an "economic stimulus" plan, some real reflection on what would stimulate the economy is needed.

The current idea is to just give everyone in the country some dollars to spend. This is great for that small portion of the economy that gains from the import of cheap imported goods. Great also for the Chinese economy and Chinese workers. Great also for those who agreed to pay for a mortgage they later decided they couldn't afford. Now they can celebrate living in a house for free for a year or so and shafting the pension funds and others who lent them the money.

Why not try to create jobs for American citizens by reducing what is the second highest tax rate in the developed world on the companies that could create real jobs?