RE/MAX 440
Kathy B. Hayes
1110 North Broad Street
Lansdale  PA 19446
 Phone: 215-362-0800
Office Phone: 215-362-2260
Cell: 215-498-7058
Fax: 267-354-6839 
kathy@kathyhayesrealtor.com
Kathy B. Hayes

My Blog

FHA Plays Vital Role for American Homeowners

March 1, 2013 2:46 am

Since the private mortgage market collapsed, the Federal Housing Administration has played a critical role by helping make mortgage insurance available to millions of qualified home buyers. That is exactly the way Congress designed the mortgage insurance fund to operate when it was established 80 years ago.

NAR President Gary Thomas testified before the Senate Banking, Housing and Urban Affairs Committee that without the FHA, the housing downturn and economic recession would have been far worse for the nation.

"FHA helped fill the void over the past five years after private lending fled the market by providing safe, affordable access to mortgage credit to millions of Americans who wanted to purchase a home," said Thomas. "Had FHA not stepped in to fill the market gap, many families would have been unable to purchase homes, current homeowners would have experienced far greater drops in equity and their home's value, and our nation's economy would be much further from a recovery."

Thomas said FHA has always safely provided access to mortgage financing; it has never offered risky mortgage products, used predatory lending practices or engaged in exotic underwriting. However, like other holders of mortgage risk, FHA incurred great financial losses as a result of overall market conditions that led to increased foreclosures.

Thomas said that NAR is confident that FHA has already taken many of the necessary steps to help stabilize the fund as well as numerous administrative changes to mitigate risk. Those changes include five increases to mortgage insurance premiums since 2009, hiring a credit risk officer, implementing credit score floors, requiring higher down payments for borrowers with lower credit scores, and adopting a series of measures to increase lender responsibility and enforcement, he said.

"FHA currently has one of the strongest books on record and the quality of borrowers has skyrocketed; continued market improvements and rising home prices will also help improve the fund's future financial condition," said Thomas.

Thomas said NAR welcomes a time when FHA's market share is reduced to its more traditional levels of 10 to 15 percent of the market, and the private lending market is once again robust, but we are not there yet. Uncertainty about pending financial regulations and the future of the secondary mortgage market are keeping private lenders from returning to mortgage markets.

"Once the rules for mortgage finance are resolved and housing prices stabilize nationwide, we anticipate that private investors will return to the market and FHA's market share will return to more traditional levels," he said.

Thomas cautioned about making arbitrary changes to FHA, such as further increasing costs to consumers or limiting the use of the program to certain types of buyers, only for the sake of luring back private markets. While NAR supports changes that are vital to the solvency and strength of the FHA fund, actions to deliberately lower FHA's market share could disrupt the availability and affordability of mortgage credit and undermine the fragile real estate recovery.

"FHA continues to play a significant role in the housing market and recovery. We applaud them for their leadership and strength during the housing crisis, and for continuing to serve the needs of hardworking American families who wish to purchase a home," said Thomas.

Published with permission from RISMedia.

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Good Broadband a Factor for Nearly a Third When Choosing a Home

February 28, 2013 2:46 am

Access to a good broadband signal is an important factor when choosing to buy a home. Nearly one third (30 percent) of people surveyed said it is likely to affect their thinking on whether to buy a home in a particular area. And one fifth (20 percent) say they would be prepared to pay more for the same home if it had good broadband.

Paying a premium for broadband

Of those who would consider paying more for good broadband, 67 percent would pay up to 3 percent more for a property with a good broadband signal and 22 percent would pay between 4-10 percent more.
Younger people are more likely to say that a good broadband signal may affect their decision, with 40 percent of 18-24 year olds compared to 24 percent of those aged 65 and over. And there is also a clear split along gender lines, with men (34 percent) more likely to say it is likely to affect their decision than women (26 percent).

A strong broadband connection is an increasingly important factor when choosing where to live. We are living in the digital age and, as such, more people are choosing to work from home. As a result we find people are increasingly prepared to pay a premium for homes with a good broadband signal, and this is likely to remain a factor when choosing where to live.

Source: Halifax

Published with permission from RISMedia.

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Spring Break Just Got Cheaper

February 28, 2013 2:46 am

As students across the United States pack their bags for a week away from their books, new research from Fly.com has identified an average airfare savings opportunity of $242 (or 48 percent) for top spring break destinations.

But you don't have to be a college student to take part in these savings. This year, travelers departing from major college towns are overwhelmingly choosing Florida for their mid-term getaway; with Fort Lauderdale, Orlando, Miami, Tampa and Fort Myers proving to be the most popular destinations for flights between Feb. 23 and March 30, 2013. Las Vegas and two Mexican beach towns, Cabo and Cancun, are also favorite getaway options.

While the cost of airfare to these destinations is up an average of 4.2 percent, compared with the 2012 spring break travel period, savvy travelers can still save money on each of this year's most popular flight routes. Data analysis reveals that travelers can save more than 50 percent on airfare if they change their travel dates by a day or two. For instance, travelers from D.C. can score a roundtrip flight from Washington, D.C., to Fort Lauderdale on March 2-6 for only $171; a 52 percent savings compared to March 2-10 itineraries.

"Moving your preferred travel dates by one or two days is key to securing low-cost fares," said Warren Chang, vice president and general manager, Fly.com. "Airfares can change from one day to the next, but we have found that consumers can save hundreds of dollars when they pick the right day to travel."

Other popular spring break destinations include Honolulu and San Juan, Puerto Rico. San Francisco and Los Angeles also rank highly with those flying from the East Coast. New Orleans is a favorite with travelers flying from Philadelphia, Detroit and New York.

Source: Fly.com

Published with permission from RISMedia.

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The Crack Down on Windshield Repairs

February 28, 2013 2:46 am

You’re driving down the road, abiding by the speed limit, avoiding distractions and following the rules of the road. The radio is softly humming your favorite tune and it’s a beautiful day for a drive. Then, TINK! Out of nowhere, a pebble smacks your windshield, leaving a jagged “bulls-eye,” “bee’s-wing,” or “star break” right in your line of vision. Windshield damage is the most frequently reported insurance claim. The biggest cause—debris kicked up from the road.

Follow these steps when your windshield is damaged:

-Don’t hold off. The longer you wait to repair your windshield, the more likely it won’t turn out as well cosmetically or structurally. See if your insurance carrier has preferred repair shops to work with and call a glass or windshield repair company right away. Many insurance companies will even waive your comprehensive deductible and pay the entire cost for a stone chip repair.

-Use a temporary fix. Until you can get the crack repaired by a professional, temporarily seal the break with tape at the point of impact. This will help prevent moisture from seeping into the break, but won’t prevent the crack from expanding.

-Keep it clean and dry. Moisture can make a windshield crack expand, so it’s important to keep the damaged area as clean and dry as possible.

Repair or replace?
Temperature change and stress can make a small break become larger, which could mean the difference between windshield repair or windshield replacement. Technically, most cracks can be filled, but depending on the size and location of the crack, the repair option may not be the best choice.

For damage larger than a 50 cent piece, repairing the windshield may make the crack less visible, but it may not be as structurally sound after the repair. The repair process isn’t usually recommended for damage that is located in your line of vision because even after it’s repaired, the crack may not disappear completely.

When thinking about repairing or replacing a windshield, most people don’t take into consideration the effect it may have on the structural integrity of their vehicle. An improper glass repair or replacement could put the safety of you and your family in jeopardy. In the event of an accident, a windshield should:

-Support the roof of the vehicle - A windshield provides support to the roof in a rollover accident if properly bonded to the frame with urethane sealant.

-Act as a back-stop for the passenger side airbag – The passenger-side airbag deploys off the windshield first and then expands to the passenger.

-Keep you safe inside the vehicle - If a passenger is thrown up against the glass, the lamination acts like an elastic band and snaps the person back into the vehicle rather than being thrown through it.

In any of these situations, the windshield will not properly perform as the manufacturer intended if the structure is weakened by improper repair or replacement. Look for an experienced glass repair company that will work with your insurance carrier to get you back on the road safely. Ask about safe drive-away time and the experience level of the technician.

Source: Foremost.com

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Most Baby Boomers Have No Intention of Downsizing

February 27, 2013 2:46 am

Despite the perception that aging baby boomers may create an oversupply of traditional single-family homes as they downsize into smaller residences, a new survey shows that demand for suburban detached homes remains strong among baby boomers and Generation Y.

The poll by Leger Marketing found that of the 40.6 percent of baby boomers (born between 1947 and 1966), who do have plans to move to another primary residence, almost half (43.5 percent) are looking to purchase another primary residence that is a similar size or larger than their current property. Of the total responses from baby boomers who intend to purchase their next primary residence, 66.8 percent said they will do so in the next five years.

Male baby boomers, who are planning to move, are more keen on upsizing their residence than women, with 23.0 percent reporting that they plan on moving to a larger residence compared to 12.1 percent of women. Baby boomers looking to purchase a condominium prefer less amenities and low maintenance fees (54.5 percent) over properties that have many amenities (39.1 percent). Seventy-eight percent of baby boomers currently own their own homes.

Contributing to the desire of baby boomers to continue to invest in large, suburban homes is the reality of housing children well into adulthood. According to the survey, a quarter of Generation Y lives rent free because of arrangements with family or friends.

The adult children of baby boomers aren't going anywhere fast. Good jobs have proven more difficult for them to find, they're extending their studies and they're living at home. It is no wonder the concept of swapping a family-sized home for a small retreat has lost its luster.

Meanwhile, members of Generation Y (those born between 1980 and 1994), who plan to purchase their next residence, are most interested in single-family multi-storey homes (50.6 percent) and bungalows (19.0 percent). Only 15.7 percent of Generation Y said they plan to buy a condominium or an apartment. In comparison, 22.9 percent of Baby Boomers looking to purchase their next residence desire condominiums or apartments.

The survey found that more than half of Generation Y planning to purchase their next residence, intend to purchase in the suburbs (55.7 percent) compared to the downtown core of a city (21.7 percent).

Forty-three percent of current non-owners who plan to purchase in the next five years say it is because they are planning to start a family in the near future. Among this younger demographic planning to purchase their next residence, the safety of a neighborhood and proximity to their work, family and friends are the most important attributes when selecting a new home. Keeping in mind that nearly half of Generation Y listed their near-term plans to have children of their own (42.0 percent) as a motivating factor to purchase; the least important factors are proximity to the downtown city core and restaurants or entertainment.

Among baby boomers who plan to downsize when they purchase their next residence, the most popular reasons are to reduce maintenance (73.7 percent), free up money for retirement (48.1 percent) and for travel (30.9 percent).

Source: Royal LePage

Published with permission from RISMedia.

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Home Prices Closed Out a Strong 2012

February 27, 2013 2:46 am

Data through December 2012, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices showed that all three headline composites ended the year with strong gains. The national composite posted an increase of 7.3 percent for 2012. The 10- and 20-City Composites reported annual returns of 5.9 percent and 6.8 percent in 2012. Month-over-month, both the 10- and 20-City Composites moved into positive territory with gains of 0.2 percent; more than reversing last month's losses. In addition to the three composites, nineteen of the 20 MSAs posted positive year-over-year growth – only New York fell.

"Home prices ended 2012 with solid gains," says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. "Housing and residential construction lead the economy in the 2012 fourth quarter. In December's report all three headline composites and 19 of the 20 cities gained over their levels of a year ago. Month-over-month, 9 cities and both Composites posted positive monthly gains. Seasonally adjusted, there were no monthly declines across all 20 cities.

"The National Composite increased 7.3 percent over the four quarters of 2012. From its low in the first quarter, it surged in the second and third quarter and slipped slightly in the 2012 fourth period. The 10- and 20-City Composites, which bottomed out in March 2012 continued to show both year-over-year and monthly gains in December. These movements, combined with other housing data, suggest that while housing is on the upswing some of the strongest numbers may have already been seen.

"Atlanta and Detroit posted their biggest year-over-year increases of 9.9 percent and 13.6 percent since the start of their indices in January 1991. Dallas, Denver, and Minneapolis recorded their largest annual increases since 2001. Phoenix continued its climb, posting an impressive year-over-year return of 23.0 percent; it posted eight consecutive months of double-digit annual growth."

As of the fourth quarter of 2012, average home prices across the United States are back at their autumn 2003 levels. At the end of the fourth quarter of 2012, the National Index was down 0.3 percent over the third quarter of 2012 and 7.3 percent above the fourth quarter of 2011.

Source: S&P Dow Jones Indices

Published with permission from RISMedia.

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Energy Efficient Homes Tax Credit Extended to December 2013

February 27, 2013 2:46 am

The Residential Energy Services Network (RESNET) and its allies scored a significant victory this January when Congress extended the Energy Efficient Homes Tax Credit to December 31, 2013. The $2,000 tax credit for builders constructing energy efficient homes was RESNET's number one legislative priority, and is seen as a clear demonstration of wide bipartisan support for high energy performance homes. The extension of the credit was included as part of the recent compromise legislation to avert the fiscal cliff.

In order to be eligible for the tax credit, builders must prove that the heating and cooling energy consumption levels of their new homes are at least 50 percent lower than those of comparable homes constructed as per the 2006 IECC.

But it's not only energy efficient builders who can benefit from this legislation. Homeowners who want to purchase qualified products to improve the energy efficiency of their existing homes can also take advantage of the tax credit. This comes as especially welcome news at a time when a slow economy is forcing homeowners to try and save money wherever they can. Energy efficient homes are not only proven money-savers, but also enjoy a greater resale value than their less efficient counterparts. As a result, increasing numbers of homeowners are opting for energy audits in order to ascertain where and how their homes are losing energy, and what cost-effective solutions are available to them to rectify those problems. The tax credit extension goes a long way in helping them do that.

Points to note regarding the Home Energy Efficiency Tax Credit include:

• The tax credit is retroactive to homes sold from January 1, 2012.
• Homebuilders selling an energy-efficient home who want to apply for the credit need to complete IRS Form 8908 (www.irs.gov/pub/irs-pdf/f8908.pdf).
• For Residential Requirements of the 2006 International Energy Conservation Code, go to: www.energycodes.gov/sites/default/files/becu/2006_iecc.pdf.

The energy efficient tax credit extension forms a part of the American Taxpayer Relief Act of 2012, and is contained under Section 408. The extension of this credit signifies the importance of home energy efficiency in today's economic climate.

Source: RESNET

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Top 5 Major Problems Caused by Winter Weather

February 26, 2013 2:46 am

Although winter may not be over just yet, many are hoping that the worst of it is behind us. Once spring arrives, some homeowners may be left with homes that have taken a hit from the winter weather. Few homes are left completely unscathed, but that doesn’t mean they are beyond repair. Here are five problems generally caused by harsh winters and tips for how you can help alleviate the issues.

Leaky roofs became a huge problem for many homeowners this season. Search your home for signs of water damage or discoloration. Be sure to check all ceilings in addition to the siding under roof eaves. Inspect rafters for stains and check in the roof, around chimneys and also near skylights. Fixing leaks is a job best left for professionals. If you choose to hire a pro, have them inspect for missing shingles or other roofing issues you may be unaware of. Fixing a roof is critically important if you're planning on selling soon. If the damage is severe enough, look into your homeowners insurance policy and see if some of that damage can be covered.

Clearing out gutters is a less severe, though just as important a task. Make sure that water can properly flow through and out of your gutters. Also, check for areas of separation or corrosion. These spots will need to be fixed immediately. Gutter guards can be added for the most extreme cases.

In relation to damaged roofs and leaky gutters, decks should also be checked for safety's sake. Look for stains or other areas where wood may be decaying. Decaying wood weakens the deck's structure. Examine the area where the deck connects to the house, and remove any moss or mold. If there is any sort of extensive wood damage, a pro should be hired to repair the issue. Depending on the age of your deck, a replacement may be warranted. Either way, confirming the structural integrity of your deck is imperative for your family's safety.

Cracked foundations can also be a result of a rough winter. Cracks should be marked and observed over time. If the area worsens, then it's time to call for help. Make sure that the ground around the foundation slopes away from the house. For minor repairs, an epoxy injection could do the trick. For holes in siding and foundation walls, expandable foam might be the better choice. A structural expert would know the best solution.

After the winter months, air conditioners often need a major tune up. Clean out any build-up of dust, leaves or other debris that may impact its performance when you need it. Disconnect the power first, then clear it out with a vent brush or with a vacuum attachment. If necessary, replace the mesh around the condenser coil. This won't take much of your time, but will definitely enhance efficiency when the weather starts to spike.

As winter gets closer to spring, re-evaluating your home and searching for needed repairs is a great way to keep your home in tip-top shape, and the safety added as a result will be invaluable.

Source: Consumer Reports Home & Garden Blog

Published with permission from RISMedia.

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Freddie Mac Changes Policies So Borrowers Will Get Hurricane Sandy Insurance Proceeds Faster

February 26, 2013 2:46 am

Freddie Mac has taken steps to cut the time it's taking servicers to get insurance proceeds to borrowers to start repairs on homes damaged by Hurricane Sandy and secured by Freddie Mac-owned or -guaranteed mortgages. Freddie Mac is one of the nation's largest investors in single-family and multifamily mortgages.

"Our goal is to simplify and clarify our policies so servicers can put insurance proceeds to work helping families and repairing homes without delay," says Tracy Mooney, senior vice president of Single-Family Servicing and Real Estate Owned at Freddie Mac. "[This] Guide Bulletin re-emphasizes Freddie Mac's commitment to do everything it can to get insurance money into the hands of eligible borrowers recovering from Hurricane Sandy as quickly as possible."

News Facts:

• A February 22 Freddie Mac Guide Bulletin gives servicers discretion on the timing and amount of insurance proceeds to release to eligible borrowers whose homes experienced some, but not catastrophic, damage by Hurricane Sandy.
• This means servicers now have the authority to provide eligible borrowers with funds for repairs and restoration either as a single payment, regardless of the amount, or as a series of payments made as different stages of work are completed. However, in exercising discretion, servicers were also told to apply the same policies and processes uniformly in order to provide borrowers repairing their homes with clarity and consistency.
• Freddie Mac also reminded servicers they are already authorized to release insurance proceeds up to the greater of $40,000 or 10 percent of the unpaid principal balance if the home was totally or almost totally destroyed by Hurricane Sandy.
• The February 22 Freddie Mac Guide Bulletin also emphasizes that servicers must not delay the release of insurance proceeds to eligible borrowers for loss of contents or, if they were displaced by the storm, living expenses.
• Freddie Mac's disaster relief policies apply to all Freddie Mac borrowers with primary residences, second homes or investment properties in presidentially declared Major Disaster Areas where federal Individual Assistance programs are available.

For more information on mortgage payment relief, homeowners should contact their mortgage servicer or call Freddie Mac at 800-FREDDIE. Borrowers can determine if Freddie Mac owns their mortgage by using our loan look-up tool at https://ww3.freddiemac.com/corporate. Freddie Mac's general disaster relief policies are posted online at http://www.freddiemac.com/singlefamily/service/disastermgmt.html.

Source: Freddie Mac

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Single Family Renters More Likely to Stay in Place

February 26, 2013 2:46 am

Single family home tenants are 18 percent more likely than apartment tenants to stay in their current homes five years or longer, suggesting that demand for single family homes, the fastest growing rental category, will be more stable than multifamily demand, according to a new national opinion survey.

One of every four (26 percent) single family tenant plans to stay in place five years or more, compared to one out of five apartment dwellers (22 percent). One factor contributing to single family stability could be high marks renters give the quality of single family property management. Some 80 percent of tenants in single family rentals said their property management was good or excellent compared to only 63 percent of apartment renters. One out of four apartment dwellers (26 percent) rated their management as only adequate.

Over half, 52 percent, of renters, including 60 percent of single family renters and 44 percent of apartment dwellers, said they anticipate becoming homeowners in the next five years. Families with three or more members (64 percent) and children under 13 (69 percent) were more likely to become homeowners than the 43 percent who don't plan to become owners.

Clothier said near-term interest in becoming homeowners among single family tenants reflects the new roles single family rentals are fulfilling as a stepping stone to homeownership for first-time buyers and as a sanctuary for large numbers of families displaced by foreclosures, but who plan to buy again when they can afford to do so.

The survey also found:

• Single family renters make more money and are nearly twice as likely to have children as apartment dwellers. Median income for a single family renter is $75-100,000 (66 percent) versus $50,000-75000 (51 percent) for a multifamily tenant. Single family households are larger; some 65 percent have three or more members compared to 32 percent of apartment households. Some 63 percent of single family households include children; only 34 percent of apartment renters have children living with them.

• Most single family tenants are older, aged 35-44 (53 percent) compared to 14-34 (46 percent) and 65+ (61 percent) for apartment dwellers.

• Compared to apartment dwellers, single family renters value neighborhood features important to children, such as parks and playgrounds (65-71 percent), good schools (72-82 percent) and safe neighborhoods (97-98 percent).

Source: Premier Property Management Group

Published with permission from RISMedia.

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