10 Tips to Avoid Your Pipes Freezing in Winter

Source: Keith Howard at LawnCareService.net http://www.lawncareservice.net/blog/2011/10-tips-to-avoid-your-pipes-freezing-in-winter/

There is nothing worse than waking up after a long and cold winter’s night just to find that none of your faucets are working because your pipes have frozen solid. This is a nuisance for many reasons, starting with the costs for professional thawing of pipes, to the wait that you will endure if you can’t pay someone to do it for you, as well as the nuisance of not having an essential resource in your home.

Having water is one of those things that are difficult to go without, and of course just as your pipes are freezing you always seem to have more need for your home’s water supply. Well, if you don’t want to go through the nuisance or costs of freezing pipes, which could easily reach $200 or more, you can follow these 10 tips to avoid your pipes freezing in winter.

These tips will help ensure that you don’t get one of these bothersome mornings after a cold midnight freeze.

1. Insulating pipes is a must. If you are in an older home, you will find that not many, if any of the pipes are insulated, whether they once were or never have been. With most new homes, the pipes have already been insulated, but there are times when you must look them over to ensure they are. If not, it is essential that you insulate the pipes to avoid them getting too cold and freezing when the temperature drops.

2. Leave a slow drip on. If the water is flowing, chances are that it won’t freeze up as quickly; giving you time to thaw out what does freeze before your water is halted. At night before bed, or before leaving if you will be away for long, you can turn the faucets on just a smidge so there is a slow drip that will prevent your pipes from freezing.

3. Frequently turn faucets on and off. There are some of you that live in areas that are so cold the pipes can freeze fairly quickly. For this reason, it is often a good idea to go around the house turning faucets on and off to ensure a good flow of water and unfreeze any frozen water in the pipes before it sets in.

4. Heated tape. If you do experience a bit of freezing in your water, which can affect your water’s flow, you can use heated tape in order to ensure the pipes remain warm and free from freezing over. This is also a great solution for those of you who have waited too late and may have already experienced some pipes freezing.

5. Make sure the area of the main pipes is warm and insulated. Most times, the pipes that freeze are those located under and outside of the house, those that are exposed to the coldest of the weather. For these pipes, it is important that you ensure the part of the house in which they can be found that there is a sufficient amount of warmth and insulation to ensure the cold air isn’t penetrating through to the pipes.

6. Keep space heaters in rooms that have pipes that freeze. If last winter you found that your bathroom pipes were freezing before any others due to the temperature in the bathroom, then it is a wise tip to make sure you have a good and functioning space heater in that room to make sure the pipes remain warm. This can be done within any room that you frequently find the pipes frozen in the winter.

7. Make sure pipe system is updated. There are many outdated systems that are comprised of copper and steel pipes that are known for freezing fairly easily. For this reason, it is important that you check your pipe system to ensure that it has been updated. If not, it is a good idea to either update or insulate very well.

8. Shut off water supply to any outside taps of your home. These are the first of your pipes to freeze, and although located outside, can cause major interior damage. For this reason, you should find the shut off valves for these pipes and cut them off before the winter arrives.

9. Don’t forget the hot water pipes! There are many with the misconception that only the cold water pipe is going to freeze, leaving them with the ignorance to leave hot water pipes unprotected. These pipes must also be insulated in order to prevent freezing and the risk of burst water pipes in the home.

10. Drain all water from pipes if leaving for an extended amount of time. If you are going to one of those great holiday family get together events out of town, it is always wise to cut the main water valve off and drain all water from pipes to ensure that there is no freezing and damage while you are away.

New Home Sales Surge

New single-family home sales in December rose to their highest level in eight months and prices were the highest since April 2008, raising cautious optimism for a housing market recovery.

The Commerce Department said sales jumped 17.5 percent to a seasonally adjusted 329,000 unit annual rate after a downwardly revised 280,000-unit pace in November. Economists polled by Reuters had forecast new home sales rising to a 300,000-unit pace in December from a previously reported 290,000 unit rate. Compared to December a year earlier, sales were down 7.6 percent. Overall 2010 sales dropped 14.4 percent to a 321,000-unit rate.

Economists saw the gains as significant.

"Clearly we are seeing stabilization in new home sales and this data suggests some upward momentum that we have seen in existing home sales. What is important to realize is even in a period of softer new home sales, inventory continues to decline, said Dean Maki, chief U.S.. economist with Barclays Capital in New York.

“The level of inventory is at its lowest since the 1960s," Maki said. This suggests the big declines in housing starts are now behind us and housing starts should be on a gradual trend in 2011.”

Brian Bethune, an economist with HIS Global Insight in Lexington, Mass added: "It's meaningful to the extent that there is a pattern of numbers showing increases. It's a sign that there is a turnaround. Things are definitely perking up, but there is a question whether it's sustainable.

Read the latest report from the National Association of REALTORS®: December Existing-Home Sales Jump

Source: "New Home Sales Surge in December," Reuters(Jan. 26, 2011)

Where is buying a home cheaper than renting one?

It’s cheaper to buy a home rather than rent one in 72 percent of the 50 largest U.S. cities, according to Trulia’s rent vs. buy index, which compares the total cost of home ownership to the cost of renting.

"Since the start of the 'Great Recession,' many former home owners have flooded the rental market,” Pete Flint, CEO of Trulia, said in a news release about the index. “Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets.”

The index compares the median sales price of homes with the median rent on two bedroom apartments, condos, and townhomes that were listed on Trulia as of Jan. 10, 2011.

Here are the top 10 cities where it’s best to buy than rent, according to the index:
1. Miami
2. Las Vegas
3. Arlington, Texas
4. Mesa, Ariz.
5. Phoenix, Ariz.
6. Jacksonville, Fla.
7. Sacramento, Calif.
8. San Antonio, Texas
9. Fresno, Calif.
10. El Paso, Texas

Source: Realtormag.com - “Cheaper to Buy Than to Rent in 72% of Largest U.S. Cities,” Inman News (Jan. 24, 2011)

Is That Home Renovation Worth The Cost?

Most homeowners think that all renovations or home improvement project ideas will increase the value of their property. The problem is that most people don't want to pay extra for someone else's dream project when it comes to buying a home.

Investing in home renovations can be important to do to make your home more comfortable for your family, but if you're going to be putting your home on the market any time soon or you are in the business of house-flipping, certain upgrades could end up doing you more harm than good.

If selling your home is on your list of things to do in the near future, here are some renovations to avoid:

1. Over-the-Top Kitchens

A $30,000 kitchen upgrade might seem like a necessity to you, nut this could be a turnoff for potential buyers who don’t necessarily like to cook. To these folks, the top-of-the-line stainless-steel stove and refrigerator may seem excessive, and they're not going to want to pay for them.

2. Over-the-Top Bathroom

Super-sized jet tubs and multiple shower heads, be your idea of perfection, but to budget or eco-minded buyers, all that extra water use is going to be a drawback. It’s best to keep your bathroom remodeling ideas modest, if you think you'll be putting your home on the market any time soon.

3. A Pool or Hot Tub

A pool can add significant value to your home. If you choose to put in an above-ground, it can knock 2 percent of your home's purchase price, since they're less appealing than in-ground pools. There are constant swimming pool costs ($1,500 on average per year) and they require a lot of maintenance. Pools are also a liability, especially for families with young children, and could affect home-owners insurance coverage. Pools will limit how many people want to buy your home, so keep that in mind before you have one installed (or consider buying a home with an existing pool).

4. Garage conversions

Turning your garage into an office, gameroom, or extra bedroom may not be the best idea. Potential buyers may have a problem with parking on the street and storing their lawn equipment in a storage building out back. If the extra space is needed to make your family more comfortable and you don’t mind alternate parking, converting a garage may be a good idea only if you are planning on living in your home for awhile. Potential buyers are likely to see this conversion as a waste of space, and a project (and expense) they'll have to deal with if they buy your home.

Real Estate Transfer Taxes in Texas

As the Texas Legislature begins its 2011 session, it will be looking at various ways to eliminate the projected $25 billion shortfall from the 2011-2012 state budget. One of the ideas that will be considered again is the initiation of a real estate transfer tax.

There has been talk of a real estate transfer tax in Texas for years. In fact, last legislative session, more than 11 attempts were made to pass a real estate transfer tax. Thankfully, all of these bills were defeated. Real estate transfer taxes raise the cost of purchasing and selling homes, price some buyers out of the market, and reduce economic activity.

What it is

According to the Texas Association of REALTORS®: "A real estate transfer tax is a tax assessed when ownership of property is transferred from one party to another. Some states also assess such a tax on long-term leases. This type of tax typically comes in the form of a percentage of the value of the property."

Currently, Texas is one of only 13 states without a real estate transfer tax. However, with a $25 billion projected budget shortfall, the state is eager to get money from any means available and the real estate industry is a prime target. Transfer tax amounts vary by state from 0.1 percent of the purchase price to as much as 1.5 percent of the purchase. Therefore, on the sale of a $200,000 home, a 1.5 transfer tax could add as much as $3,000 in additional costs that a buyer or seller would have to pay at closing.

Impact

According to the Texas Association of REALTORS®: "The National Association of REALTORS® commissioned a study to analyze the effects of a transfer tax on real estate. The report assumed a tax rate of 0.5% and a $125,000 purchase price. Based on these assumptions, the cost of buying a home would increase by about $600, and home sales would decline by almost 3%. In addition, the Real Estate Center at Texas A&M University concluded that the creation of a transfer tax on real estate may create more problems than it solves. This type of tax could cost Texas $955.5 million in lost economic activity with 11,575 jobs lost."

What it Does

•Transfer taxes raise the cost of purchasing and selling a home-pricing many buyers and sellers out of the market and reducing local economic activity. This kind of taxation is damaging and it affects anyone who is trying to buy or sell a home, land, or business, including: New homeowners, seniors wanting to downsize, churches, civic groups, and military families needing to move due to relocation.

•Transfer taxes are discriminatory as they tax only one type of asset-real estate. Similar taxes are rarely applied to financial assets, such as stocks and bonds.

•Transfer taxes can be volatile. For example, a transfer tax of $10 per transaction was initiated in New Jersey, but within 12 months the rate was increased to .78 percent of the sales price.* Therefore, a home priced at $300,000 initially had a transfer tax of $10, but at .78 percent that tax increased to $2,340.

•A real estate transfer tax in excess of the costs associated with the administration of property-ownership records is an arbitrary levy. This levy is not systematically related to a household's ability to pay, or to the benefits derived from public services.

During the 81st regular session of the Texas Legislature in 2009, there were three senate bills (SB-950, SB-934, SB 942) that were introduced that could potentially increase the costs of purchasing a home.

Senate Bill 942, was a bill that would have allowed Texas counties to enact new taxes for transportation projects. A new tax option considered was a real estate transfer tax to be paid within 30 days of the transfer of property. Each county would have had the power to set their own transfer tax rates and would require that the real estate transfer tax be paid before the county clerk records any instrument relating to a real estate transaction in the state of Texas.

This spring, the 82nd Texas Legislature will look at implementing a transfer tax. Be sure to voice your concerns to your state office holders by asking them to oppose any real estate transfer tax and by giving your fair share to TREPAC. Your TREPAC dollars will help fight to keep taxes like these from ever becoming law.

*According to the NATIONAL ASSOCIATION OF REALTORS® Web site, www.realtor.org.

Christmas gift suggestions:

To your enemy, forgiveness.
To an opponent, tolerance.
To a friend, your heart.
To a customer, service.
To all, charity.
To every child, a good example.
To yourself, respect.

Oren Arnold

Boost Your Home's Curb-Appeal in the Winter!

During summer months when gardens are in bloom and the sun is shining bright, curb appeal comes naturally to many homes. But when the autumn chill turns to winter cold and the sun sets earlier in the day, it becomes more difficult to create that inviting exterior look that grabs buyers from the curb.

Fortunately, it is possible to create striking winter curb appeal without expensive or complicated exterior changes, says Charlene Storozuk, a home stager and designer with Dezigner Digz in Burlington, Ontario—a city that averages 51 inches of snow per year. It just requires a little creativity.

She and other home-design experts offer these tips:

1. Add splashes of green and purple. Plants, grasses, and evergreens can liven up a home’s winter landscape. Experiment with tall grasses, such as fountain grasses, that survive harsh winters. And in late fall and early winter, plants from the cabbage family add a vibrant purple color. Make the front door the focal point with a large wreath adorned with a colorful ribbon. To finish the look, place large, colorful planters filled with evergreens beside the front door, suggests Elizabeth Lord, broker with Carolina Farms & Estates LLC in Rock Hill, S.C.

2. Give it seasonal sparkle. Transform an unused bird bath or fountain into a seasonal display by adding twigs with red berries. Or fill frost-resistant urns with twigs, winter greenery, and sparkly baubles (sold at most craft stores), Storozuk says. For extra sparkle, roll twigs in glitter and incorporate a gazing ball—a mirrored glass ball available in various colors—into the display.

3. Make the garden statuesque. Roman- or Greek-themed outdoor sculptures can add class and elegance to a garden in winter. Be sure to use frost-resistant statues so they don’t crack, Storozuk says. Place the statues strategically throughout the garden to draw buyers’ eyes around the outdoor space.

4. Light it bright. During the winter, it’s more likely that buyers will be viewing home after sunset. Use clear flood spotlights to focus on the home’s architectural features, Storozuk says. Keep exterior lighting fixtures at maximum wattage and clean them regularly. When snow covers the ground, Michele Thompson, broker-owner of White Fence Real Estate in Vevay, Ind., takes photos of listings at night with all of the interior lights on—the light bounces off the white snow to create a warm, inviting glow. For the best results, turn off the flash, and use a tripod to avoid blurring, she says.

5. Make the deck an extension of the house. Set up your outdoor tables and chairs just as you would in warmer months. “Home owners often cover their furniture and place lawn objects haphazardly on the deck,” says Kitty Schwartz, president and owner of Classic Home Staging in Katonah, N.Y. For added appeal, she adds a weatherproof cafe set with pillows that play off of interior accent colors. “Glancing out onto this type of vignette can make the indoor space feel larger and more interesting,” she says.

6. Create a photo display of sunnier days. Show buyers what the outside of the home looks like during other seasons by displaying some landscape photos in frames or using a digital photo frame with a slide show of images. “This will give a sense of what the property looks like at other times of year,” Storozuk says. If the home has a garden, make a list of what’s planted where. “Perennials can be expensive,” she says, “so treat them as a selling feature.”

By Melissa Dittmann Tracey as posted on Realtormag.com

Owners Recoup More with Exterior Home Projects

As part of the 2010-11 Remodeling Cost vs. Value Report, Realtors® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.

“This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for home owners to work with a Realtor®through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”

Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. Realtors® identified these two replacements as projects that can significantly improve a home’s curb appeal.

“Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.

The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.

Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that home owners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.

According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. Upscale fiber-cement siding replacement was judged by Realtors® the most cost effective among siding projects, recouping 80 percent of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8 percent of costs.

The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.

Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

The regions where Realtors® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).

“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a Realtor®who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”

Source: NAR

“ date which will live in infamy”

On Sunday morning, December 7, 1941, the American Army and Navy base in Pearl Harbor, Hawaii was attacked by the Imperial Japanese Navy. The attack came as a surprise to the American Army and Navy and lead to great losses of life and equipment. More than 2000 American citizens were killed and more than 1000 were injured. The Americans also lost a large proportion of their battle ships and nearly 200 aircraft that were stationed in the Pacific region. More than 60 Japanese servicemen were killed, injured or captured. The Japanese Navy also lost five midget submarines and 29 aircraft.

The Japanese military had hoped that the attack on Pearl Harbor would prevent the United States of America from increasing her influence in the Pacific. However, the events in Pearl Harbor actually led to the escalation of World War II. The day after the attack, the United States declared war on Japan and so entered World War II. President Franklin Roosevelt in a speech to Congress stated that the bombing of Pearl Harbor was “a date which will live in infamy”. Shortly afterwards, Germany also declared war on the United States. In the months that followed the attack, the slogan “Remember Pearl Harbor” swept the United States and radio stations repeatedly played a song of the same name.

In 1991, which marked the 50th anniversary of the attack on Pearl Harbor, the United States Congress established the Pearl Harbor Commemorative Medal. This is also known as the Pearl Harbor Survivor's Medal and can be awarded to any veteran of the United States military who were present in or around Pearl Harbor during the attack by the Japanese military. The medal can be awarded to civilians, who were killed or injured in the attack.

Make Those ‘Green’ Renovations NOW, Tax Credit Expiring Soon!

Time is ticking to complete home renovation projects if you want to cash in on a tax deduction that expires at the end of the year. Tax credits are available for home owners who do upgrades that help them save energy and reduce their utility bills such as with more energy-efficient windows and doors, insulation, and heating and cooling equipment.

You can qualify for up to $1,500 in tax credits when filing 2010 income tax returns. Home owner have until Dec. 31 to qualify for the tax credit.

Home owners can take advantage of the tax credit (Internal Revenue Code Section 25C) for efficiency upgrades made to existing homes, such as for certain types of insulation, windows, roofs, water heaters, heat pumps, furnaces and air conditioners. Tax credits are available for 30 percent of the cost up to $1,500 for 2009 and 2010.

Tax credits — also up to 30 percent of the cost of the qualifying products — are available for equipment using renewable energy, such as solar, geothermal, wind or fuel cells (under tax code section 25D). However, you have until the end of 2016 to take advantage of that tax credit program.

By Melissa Dittmann Tracey, REALTOR® Magazine

We are THANKFUL!

"Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow."

Melody Beattie

New Trends in Home Upgrades

1. Hidden, Wall-mounted TV

Have your big screen TV with big style! Designers are choosing to hide a huge TV in the wall and cover it with a mirror or artwork so when you’re not watching it, you don't even know it’s there! Above the fireplace, it can be a framed mirror or piece of art, or you can mount it in the closet behind the mirror, hidden by a removable panel in the closet. TVs require proper ventilation, so this is NOT a do-it-yourself project.

2. Water Feature with Fire

Combine your fire pit with a fountain and create a fabulous feature for your back yard! It can be rectangular trough-like structure with broken glass in the middle where the fire shoots out, or circular. It can be freestanding, attached to a pool or a big ridge of fire in a stoned wall. As an added bonus, it’s remote control!

3. Pop-up Ventilation for the Kitchen

Vent hoods are necessary in the kitchen to combat smoke smells and cooking fumes, but they can be clunky as well as greasy and dirty. A pop-up hood vent on the other hand can be placed in an island or other countertop, as long as it has an underground vent to the outside. All you have to do is press a button and up it comes to suck all the smoke and fumes out of the air, then press another button and it vanishes!

4. Cooling Drawer

For an extra “cool” kitchen, opt for a cooling drawer! These drawers have several different temperature settings, so they’re great for soda, wine, ice cream or snacks for the kids. You can have any number of them scattered around the kitchen!

ELECTION DAY TOMORROW - GET OUT AND VOTE!

No man is good enough to govern another man without that other's consent. ~Abraham Lincoln

Don’t Forget Your Gutters!

The leaves are falling! Now is a great time to make sure your rain gutters are clear of debris. Doing the job yourself is easy and affordable with these tips:

1. Wear heavy work gloves to protect your hands from sharp metal that may be on the gutters.

2. Remove loose debris from the gutter using a small tool, such as a garden trowel, and scrub encrusted dirt with a stiff brush.

3. Power wash gutters with a hose to clear debris – just make sure you send it toward the drain outlet.

4. Make sure drainpipes are clear, if necessary use a plumber's auger to pull debris from the bottom of the drain.

Information source: AHS Newsletter

Current Trends in Dining Rooms

1. Take down a wall between the dining room and kitchen to make one large casual cooking, eating, and multi-purpose space.

2. Those who build today often go for a simpler floorplan opting for more casual eating and living areas, an open “greatroom” with a dining corner, or a smaller dining room with a lower ceiling for warmth and intimacy.

3. More and more we are seeing dining rooms that have become multipurpose spaces with bookshelves, wet bars, or built-in deska for a planning center.

4. Colors in the dining room can be bolder than other rooms, because of the infrequency of use, but just showcase one element with bold color like walls, furniture, the ceiling, or a ceiling fixture.

5. Hang a chandelier lower than usual to create intimacy. Use a round table which is more conducive to conversations.

U.S. urges lenders to vet foreclosures but keep process moving

Breaking News Alert: October 13, 2010 3:57:10 PM
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Federal regulators on Wednesday urged the nation’s lenders to verify that all paperwork filed as part of the foreclosure process is properly reviewed and to file new documents if problems are found. Regulators said that lenders should continue with foreclosures as quickly as possible if no problems are found.

Foreclosure Probes Launched

In an AP article by Alan Zibel posted on Yahoo.com just moments ago, it was announced that “officials in 50 states and the District of Columbia have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.”

States' attorney generals and bank regulators will begin to examine whether mortgage company employees made false statements or prepared documents improperly.

This could mean that foreclosure proceedings across the nation could be subject to legal challenge, with the possibility that some foreclosures could be overturned. More than 2.5 million homes have been foreclosed since December 2007, according to RealtyTrac Inc.

Some banks have already halted questionable foreclosures, but others, including Citigroup Inc. and Wells Fargo have not stopped processing foreclosures, and have denied that they have done anything wrong.

Evidence will be reviewed that may show that legal documents were signed by mortgage co. employees with no knowledge of the information found in the documents. There is a possibility that many of these documents were signed without witness from a notary public, which violates most state laws.

Don't Miss The State Fair of Texas - Final week!

You don't want to miss out on attending the BEST STATE FAIR ever! The last day is Sunday, 10/17.

What could be better than strolling the historic fair grounds, eating a corny dog and some friend chocolate, then attending the special Tom Landry exhibit? You can take a ride on the Texas Star, try your luck at the games, and watch a spectacular light show! You even get to hear great concerts, shop for your next car, and check out the livestock!

It's hard to find a better way to spend a day with your family, so don't miss the 2010 State Fair of Texas!

Check out www.bigtex.com for more information.

Government Moves Toward Foreclosure Moratorium

Despite concerns about its impact, some legislators are pushing for a nationwide moratorium on foreclosure sales.

U.S. Rep. Edolphus Towns, a New York Democrat, who is chairman of the House Committee on Oversight and Government Reform, said the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states.

"The implications of ignoring the foreclosure problems are far too great to be ignored," he said Friday.

Other legislators are moving to revive cramdown legislation, which would give judges the power to reduce mortgage principal to market value. The controversial bill had passed the House but was stuck in the Senate.

The Mortgage Bankers Association of America and the Financial Services Roundtable said Friday in a joint statement that after reviewing paperwork, banks are reassured that nearly all foreclosures are legitimate.

"Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy," the statement said.

Source: The Wall Street Journal, Ariana Eunjung Cha, Steven Mufson, and Jia Lynn Yang (10/09/2010)- AS POSTED ON REALTORMAG.COM

Costly Delays Caused By Foreclosure Reviews

House Speaker Nancy Pelosi has called for a federal investigation of foreclosure sales and evictions.

Observers say that if the government gets further involved and millions of foreclosures need to be re-processed, it is unclear how long the job will take and how costs will be allocated.

Lenders are rushing to review their own situations. At GMAC Mortgage, a unit of Ally Financial Inc., a spokeswoman said, “The vast majority of these affidavits will be resolved in the coming weeks and before the end of the year,” And a spokesman for J.P. Morgan Chase & Co. said the company's review process is expected to take "a few weeks."

But fixing the problems won’t be that simple if the reviews uncover missing documentation or other serious problems that are likely to trigger more legal challenges.

The bottom line is: "It's very hard to see how the servicers can avoid reimbursing the trusts for losses caused by taking short cuts," said David J. Grais, an attorney in New York who represents investors.

Source: The Wall Street Journal, Robbie Whelan and Ruth Simon - as posted on Realtormag.com