It’s sad to say, but sometimes bad things happen to good homeowners.  An owner can fall behind in his mortgage in the best or worst of neighborhoods.  Even homes in The Hills Bedminster NJ are not immune to this difficult reality.

Falling behind in a mortgage can stem from any number of life’s circumstances.  Recently, unemployment and underemployment have been the most widespread culprits.  A serious illness or injury in the family can also devastate a bank account.  Sometimes, home owners have just made a poor choice of loan that ends up costing more than they can afford.  For whatever reason, sometimes a loan modification becomes necessary.

A homeowner can become very frightened and even a little bit desperate in these times.  This combination can make them an easy target for a scam.  The best defense against unscrupulous operators is a good education.  Learn all you can about the various schemes and scams that are common today so you will know one when you see it.  Get started with these tips and techniques.

The First Call
The first number you should call is not one from a website or an advertisement.  Call you lender first.  Ask to speak with the loss mitigation department and state your circumstances.  (Don’t forget to take notes on what was discussed and with whom you spoke.)

If you don’t want to call your lender just yet, consider calling a HUD-approved loan counselor.  HUD mortgage counselors can help you figure out your options when you’re in a financial bind and create a plan to help you get yourself out of it.  These certified housing counselors offer their services at either a low cost or at no cost at all.

Paying Up Front
This brings up to the pay-up-front scam.  A certified HUD counselor will never ask you to pay up front for their services.  Most of the counseling process is provided completely free of charge.  Be very leery of anyone who wants you to pay their fees before they provide any services.  This is against the law; don’t fall for it.

Buy-Backs and Reverse Mortgages
Scams abound in this area.  If a so-called lender offers to buy your property and sell it back to you, think twice about what you’re doing.  There are some legitimate companies doing reconveyance loans, as they are called, but just as many are bilking people out of their equity and property.  You are giving up control of your property this way.  You’d be much better of working out a deal with your original lender.

Sales in the Hills Bedminster NJ are usually good investments for the future.  However if you find yourself in a precarious position with your lender, be sure to look for a reputable help in your time of trouble.  Take the time to research the common scams so that you won’t become a victim of one.

One of the biggest trends for homes in The Hills Bedminster NJ is remodeling.  Renovating a home can make it a more viable commodity when you choose to resell.  However, you may or may not see a dollar for dollar return on your investment.  Renovating is always a guaranteed money maker.

Each year, Remodeling Magazine publishes its list of the average returns on investment for the more popular home improvement projects.  The totals vary somewhat by region of the county.  (Our home state falls in the Mid-Atlantic region for this list.)  The magazine also divides the list into mid-range and upscale project categories.

So what the big winner for the best return on your investment?  Is gourmet kitchen the best place to sink your cash?  What about a spa bathroom or an in-ground pool?  You might be surprised at the actual results.  They are a bit more mundane than most homeowners expect.

In the mid-range list, changing a front entry door to a steel replacement door topped the list.  It may not be the most exciting project, but it will give a homeowner a national average of 128.9% return on his dollar.  Surely the best “upscale” project will something a little, well, sexier?  If you think exterior fiber-cement siding is sexy, then the answer is yes.  An owner will recoup about 83.6% of his investment if he chooses this renovation.

Where do the exciting projects fall on this list?  A major kitchen remodeling job ranked 6th on the upscale project list, giving a national average return of 63.2% on the investment.  A bathroom remodel was 7th on the same list with 61.6%.  Kitchen remodels fell 5th on the midrange list at 78.3% and bathrooms were 10th with 71.0% return on investment.

How can you know what projects will fare well for sales in The Hills Bedminster NJ?  Remodeling Magazine and other like it are a great source of information but there’s another source a little closer to home.  Who knows what buyers in your town want better than your local realtor?

Just because you’ve closed on your home doesn’t mean you closed out your relationship with your real estate agent.  He can be a big help in deciding what projects will help your home sell when the time comes.  Your agent has a direct connection to buyers in your area.  He hears every compliment and complaint about each home he shows.

Your agent has a thorough understanding of what buyers expect to see in a particular price point.  He can check on nearby properties for sale and recent comps to see how your planned renovation will affect your resale value.  He can tell you if you are overspending for your neighborhood or missing the mark with an inexpensive fix.

Talk to your realtor before you renovate.  You’ll be glad you did when you decide to resell.

Outdoor Features to Add

Homes in The Hills Bedminster NJ are famed for their beautiful outdoor spaces.  Decks, patios and community paths make this lush, green community a favorite escape from the concrete coldness of the city.  Adding outdoor elements to your home can work wonders on your resale value so take a cue from The Hills and revamp your home’s landscape.

Hardscape
Hardscape refers to the structural elements in your yard like porches, patios, walkways and walls.  These elements are the big ticket items to install but they will add the most value to your home.  The home’s livable space is actually extended by adding features like sunrooms, also called “three-season rooms,” and screened porches.  You can’t count it in the home’s square footage but buyers will still see the value of the space. 

Decks and patios are also favorite features of buyers, especially if they are staged well.  Placing a small to medium sized grill and a bistro set on the patio is all buyers need to imagine fun summer cookouts.  Outdoor spaces offer buyers a glimpse of how they will live in the home, not just where they will live.

Overspending is easy in hardscape projects.  Be careful not to put too much into an outdoor kitchen or multi-level deck.  Just like any indoor renovation, an outdoor renovation will only boost the value so much and over-improving will simply be a waste.

Landscaping
Trees, shrubs and flowering plants make up the softer side of an outdoor space.  The beauty of good landscaping has kept sales in The Hills Bedminster NJ so strong.  Again, it’s very easy to spend money on plants so watch your budget. 

Plan the space just as you would an indoor space.  You wouldn’t put four full size couches in a living room; don’t crowd the yard with trees and shrubs.  A shade tree is a valuable investment but a standard can only comfortably hold so many once they reach maturity.

Flowering plants and shrubs will add a lot of curb appeal if they are installed properly.  Check with a local nursery to find out what plants will thrive in your climate zone.  Choose a color palette and stick with it when choosing perennials.  Too many colors and textures can create a messy or unkempt effect. 

Whatever outdoor elements you choose to add to your property, be sure to keep them looking neat and tidy.  Broken limbs, weedy gardens and dirty decks will make buyers think twice about your property.

What Makes a Neighborhood Desirable?

Everyone has their own opinions about what makes a house a good choice.  The quality of the surrounding neighborhood is usually at or near the top of most lists.  Homes in The Hills Bedminster NJ are blessed with great neighborhoods but some buyers, especially first-timers, may not know exactly what criteria make a neighborhood desirable.

Opinions vary, but there are usually some common elements that buyers like to see in a neighborhood.  Good schools, well-maintained homes, green spaces and a convenient location are on most “must-have” lists.  But what else makes a neighborhood a good choice, both for your lifestyle and for resale value?

Location
Location is not just the standard real estate agent answer; it really is that important to the value of a home.  When choosing a neighborhood, never discount accessibility.  Look for features that make the location convenient for everyday living.  You want to be close enough to amenities for comfort, but far enough to maintain a residential feeling. 

For instance, you’ll want to be within a few minutes’ drive from a good grocery store but you’d probably not want one adjacent to your property.  Easy access to commuter transportation or roadways will boost property values but a highway view won’t do your home any favors for resale.  Nearby community amenities like fitness centers, churches, small movie theaters, specialty food stores and restaurants can also have a positive effect on your property values. 

Security
Safety is one the top concerns of home buyers.  The local police department should be able to provide data on crime in any particular area.  Check on the average EMS response time in a potential neighborhood, especially if you have a medical condition or if you are a senior citizen.  Check for well-lit streets and public areas that are well-maintained by residents.  Community pride usually leads to a low tolerance for undesirable behavior.

Reputation
Many neighborhoods remain popular with buyers based on little more than a long-standing reputation.  If a certain area is known as a good place to live, it will attract buyers.  Ask around and find out which parts of town have enjoyed a good reputation over time.  Chances are they will continue to stand the test of time.

Sales in The Hills Bedminster NJ stay strong for many of these reasons.  A good neighborhood will be a major factor in your home’s long-term value.  Be sure to do your homework and find a neighborhood that works for you and will retain its charm and accessibility for years to come.

You can call it sustainability, eco-friendliness or just plain green.  No matter what name you use, the biggest trend in home design is using materials and techniques that are easy on the Earth.  Most design trends are all flash and no substance and they usually don’t last long.  But sales in The Hills Bedminster NJ will be affected by green design for years to come.  If you are building a home or renovating one, keep these ideas in mind to protect your resale value.

Energy Efficiency
Conserving energy and reducing its use are great ways to go green.  They also save money.  One way to conserve energy is to find energy efficient materials and appliances.  Look for the Energy Star rating on appliances, electronics, insulation and even doors and windows.  Energy ratings are like the MPG ratings on a car.  They tell you approximately what to expect from average use.  Choose well-rated appliances that will give you the best performance while using the least amount of power.  Try compact florescent bulbs to conserve energy and reduce your usage with a programmable thermostat.

Water Conservation
Conserving water is important for the plant’s future as well as your present finances.  You can conserve water both inside and out.  Indoors, you can purchase low flow toilets and shower heads to reduce your environmental impact.  Tankless water heaters reduce both your water and energy usage.  Outside, choose plants and grasses that don’t have high water requirements.  Use mulch in planting beds to retain moisture.

Sustainable Materials
When following the green trend, homes in The Hills Bedminster NJ should be constructed with sustainable materials.  Plenty of building materials are now made either entirely of recycled materials or at least in part.  Look for ways to incorporate recycled brick, decking and trim.  Ask your contractor about recyclable building materials and how to incorporate them into your construction or remodeling job.  You can also reduce the amount of toxins in your home environment with low VOC paints.

Recycled Finishes
Your home’s fine finishes can also be made of recycled materials to minimize your carbon footprint.  Countertops made of recycled stone are both beautiful and eco-smart.  Synthetic stone looks just as good are equally durable, but they don’t have to be mined from the Earth.  Bamboo makes a beautiful floor and is very sustainable.

Think about incorporating the hot new trend in your home in The Hills.  When you resell, you’ll be glad you did.

When homeowners face delinquency on their mortgages, or even foreclosure, it is easy for them to feel all alone.  The inability to pay for your home is devastating – but, unfortunately, it is more common than ever before.  If you have an adjustable rate mortgage, your mortgage payments may have shot up to levels you can’t afford.  This, combined with slow economic growth, can make paying for your home difficult but maybe not impossible.

When you are facing mortgage payment problems or foreclosure, your lender or lenders may be the last people you want to talk to.  This is certainly understandable, but they should be one of your first stops when tackling this problem. Something that you need to remember is that the bank does not want to own your house.  They don’t want to take it away.  This isn’t necessarily because they are altruistic but because they would rather hold money than property.  If they foreclose on your house, they are stuck with a property that they cannot sell for enough to recoup on your loans. Whatever their reasoning, foreclosure is something that neither party wants.

The first step is to talk to your lender.  Present yourself as a reliable, honest person.  You are not missing mortgage payments because you’re a degenerate gambler or you would rather spend your money on clothes and shoes.  Maybe you are ill or injured which prevents you from working; maybe your job has been downsized; maybe you’ve recently gotten divorced; maybe you have a variable rate mortgage that is out of control.  For these reasons, you might be able to work out a deal with your lender. 

Explain your hardships and provide documentation.  This may include pay stubs, income statements, bank statements, or other financial records.  The key is to do this early: if you find you can’t make a payment or have already missed one or two, contact your lender.  Don’t ignore calls or letters.  Your lender can actually help you keep your home if you act early.

Your lender will probably send you a loan workout package, which contains forms and instructions.  Fill these out fully and truthfully and send it back quickly.  The faster you do this, the more options you have to pursue.  Some of these options include forebearance (in which you are given a reprieve from making payments for a specified period of time), a repayment plan, or reinstatement (in which your lender accepts the total repayment in one lump sum by a certain date).  You may also be able to modify your mortgage or get an interest-free loan from your mortgage guarantor.  These options may save you from having to foreclose on your house.

If you are hesitant to talk to the bank, then immediately contact a housing consultant that is approved by HUD.  These consultants can provide advice on steps you can take.  The HUD website has a list of HUD-approved counselors.

With either option, act immediately.  Don’t wait until you are months behind on your mortgage payments.  This decreases the options that are available to you.  Losing your home is traumatic, but if you contact your lender, speak truthfully, and work out a plan, you may avoid having to deal with that.   An important thing to remember is that the bank is not the enemy.  They don’t want your house; they would rather have you live there and pay them money.  The amount and payment schedule, though, can be negotiated.  Don’t let things go until it’s too late.  Act now and save your home.

It is no secret that it is currently a buyers’ market for houses and condos.  Sellers are facing the prospect of listing their properties for less than they bought them for, and sometimes less than what they owe on their mortgages.  If you bought your current two bedroom condo for $500,000, you may looking at a market where prices are in the $300,000-$400,000 range or even less. So what do you do if you want to sell your condo?

One option is to list it for the price you want and hope it sells.  This involves playing up your condo’s advantages and making it extremely attractive to buyers.  Condos come with amenities like pools, maintenance, security, gyms, tennis courts, and a condominium association.  There is a definite advantage to living in a condo because you get these features that you may not have been able to afford on your own. 

If you are selling, you also need to make your condo look as good as possible.  Clean, clean, clean before you have potential buyers visit.  Have some plants, make the lighting inviting, make sure small repairs are taken care of, make it smell nice.  Anything you can do to make your condo seem homey is necessary.  You need to convince people that this could be their home. 

If your home isn’t selling, enlist the aid of an experienced realtor.  They know the market, as well as tips to showcase your condo. You can get advice on covering some of the closing costs or financing costs for an interested buyer, review your asking price, or discover new ways to advertise your condo.  Reviewing your asking price is particularly important – you may need to come down in order to sell.  You may also have to include financial incentives to buyers.

If you find that selling at this time is not the most financially prudent thing to do, you can pursue a lease option. This is an area where an experienced realtor can help you. In a lease option, you locate an interested party.  This party may not want to purchase for a number of reasons, but leasing may be ideal.  This is a basic overview of how this works:

• The owner agrees to lease the condo for a specified period, usually one to three years.
• At the end of the lease period, the lessee has the option of buying the home at a preset price.

This allows owners to settle their property sooner in down markets. It also benefits the lessee because a lot of the time, a portion of their rent can go towards the down payment if they decide to purchase the condo at the end of the lease period.

Condos are more susceptible and sensitive to fluctuations in the housing market, so a leasing option may be the best way to handle the sale of your condo.  Work with your realtor to try to sell your condo; but if you find the price is not right, try leasing.

In the current housing market, you may be hesitant to sell your property.  Will it sell?  Will I get the price that I am asking for or that I need?  These questions can keep sellers up at night.  For owners of properties in the Hills, Irene Trokan can handle your property, get it sold, and offer a very flexible commission.

Irene Trokan is an experienced realtor.  She has been licensed in New Jersey since 1978 and in New York since 2000.  As a member of the North Central Jersey Association of Realtors, the Garden State Multiple Listing Service, and the National Association of Realtors, Irene is knowledgeable in all areas of realty.  When working to sell your home, you can be assured that Irene works tirelessly and with great enthusiasm and professionalism.  Irene’s extensive experiences in inventory, pricing, area, and marketing are a valuable asset to Hills homeowners who are interested in selling their properties. 

Previous clients have this to say about their experience with Irene:

• “[Irene’s] prompt and professional approach made the entire process smooth and seamless.” Peter S from Basking Ridge
• “She is a very thorough and competent agent who will represent your client well.” Elaine R
• “She is hard working, imaginative and has great interpersonal skills. Both your organization and your client can have confidence in her extensive years of experience in real estate. She is always professional and up to date in her field, even in this unsettled market, which she well understands. She is reachable and addresses concerns in a fast, direct manner and puts clients at ease.” Pamela M

Especially important is Irene’s knowledge and experience with turbulent markets.  Homeowners need a realtor who can work confidently and intelligently even in this difficult housing market.  Irene is such an agent.  Not only is she able to sell your property, her commission is very flexible. 

Irene can help you decide what your home is worth – the market value and what price you should be asking, create multiple listings for your property, and give you valuable advice on how to make your home attractive to buyers. 

Another advantage that Hills homeowners have is location, location, location.  The Hills offers beautiful homes in lush surroundings.  There are a lot of amenities involved in living in the Hills, and Irene can capitalize on these in order to help sell your home.

Selling your home in the current market can be frustrating and worrisome: Irene Trokan lends you her experience and professionalism in order to make the process easier – and less expensive- for you.

What is a Short Sale?

If you bought your home several years ago, you may find yourself in the unenviable and extremely difficult position of owing more on your mortgage than your home is actually worth.  This problem is compounded if you have had to refinance your mortgage or even take out a second mortgage.  When homes sell for less than the owner owes on the mortgage, it is called a short sale. 

Even further exacerbating this dilemma is the current mortgage crisis in the United States.  Record numbers of homeowners are delinquent on their mortgage payments and face foreclosure.  While this is not bad news for buyers, it is not great for you as an owner.  So what do you do if you are facing delinquency or foreclosure?  A short sale, while far from ideal, is probably your best option.

When you are considering a short sale, there are several things you need to do.  First, you need to approach your lender.  A short sale is not ideal for the lender either because they have to accept less money for the property than you owe them.  However, lenders would probably rather recoup a large portion of their money through a short sale than have the property go into foreclosure.  With a foreclosure, they have real estate instead of money, which can be hard to convert.  So, a short sale may be in the best interest of everyone involved.

You have to prove to the lenders that you cannot pay your loans.  This can be because of illness, loss of job, divorce, or other circumstances.  You may have to provide pay stubs, bank statements, income statements, and other supporting documents.  Another thing to be aware of is that sometimes lenders may make you pay the balance of the loans after the sale of your home.  If they don’t, the IRS considers the forgiveness of the balance to be taxable income, so you’ll have to report that on your tax return. 

If you are in a situation where a short sale is necessary, consult a real estate agent.  Many have experience in these kinds of sales and so can understand your situation and even your feelings.  You may also want to consult an attorney for advice. 

Are there any ways to avoid both a foreclosure and a short sale if you find you are unable to pay your mortgage?  You can try to sell your home on your own before either becomes imminent.  You could also try renegotiating your loans – remember that the lenders don’t really want you to foreclose either.  Another thing you can try is a lease option/equity share arrangement.  In this option, you find someone to take over your payments for you (sort of like subletting an apartment).   The lessee gets the advantages of owning a home, and you get away from burdensome payments.  At the end of the lease period, you sell the home and split the equity. 

Having a home and facing the possibility of having to sell if for not only less than you bought it for but less than you owe on the mortgage is disheartening.  Foreclosure should be your last resort because it mars your credit report for years, making it hard to get another property or other loans.   If you have explored other options, but foreclosure is looming, strongly consider a short sale.  An experienced real estate agent can help you with all the necessary steps and make the process a bit easier for you.