1. If a crime has been committed, report it to the police. You should get a copy of the police report.

2. Contact your insurance agent or company immediately.

3. If necessary, try to protect your property from further damage. Save your receipts.

4. Don’t dispose of damaged items until the adjuster has seen them.

5. Prepare a list of damaged items. Take pictures of the damage. (Now aren’t you glad you made an inventory list/video?)

6. Get the appropriate claim forms and fill them out completely. Return them within the time limit.

Resolving Issues

If you encounter problems (such as denial or inaction within a reasonable period of time) settling your insurance claim for your Mobile Eastern Shore real estate, you can follow these steps:

• Make sure you can support your case with documentation. Be prepared to send copies with any letters. Keep the original documents, such as estimates and receipts and only send copies. Also keep copies of all letters.

• Be prepared to document each phone call. Note the date and time of each conversation and name of each person you talked to.

• Review your policy to see if it contains information on resolving disputes or appealing a claim denial.

• Talk with your agent or company representative. If they can’t solve the problem then get the name and phone number of the company’s claims manager.

• Send a letter explaining your problem including copies of supporting documentation to the company claims manager.

• If your problem still isn’t satisfactorily resolved, then contact your state insurance department and file a complaint. Locate your state insurance web site using the National Association of Insurance Commissioners (NAIC) web site.

• As a last resort, you may want to consult an attorney. Make sure you choose an attorney that specializes in homeowners insurance. Be prepared to pay a consultation fee and get the fee structure in writing before pursuing the case.

Filing Claims

To reduce the chances of having to file a claim at all, use common sense when it comes to installing and maintaining smoke, carbon monoxide, and motion detectors, cleaning chimneys and wood stoves on a regular basis, and keeping a dry chemical fire extinguisher in the kitchen. Rely on deadbolt locks and an alarm system for protection against theft and use space heaters with caution. Your policy may contain clauses or conditions that specify other reasons that could void portions or all of your coverage. Examples include failure to report claims promptly, failure to cooperate fully with the insurance company, and failure to protect the property from further loss. Another example would be using your home for a business (perhaps even providing informal but regular childcare for three or four children not your own) not specifically included in the policy. Make sure you read your policy carefully to determine what the conditions are.

An insurance company may also cancel or refuse to renew your coverage or raise your premiums if for any reason the property no longer meets their underwriting criteria. For example, perhaps the building has grown too old or the zoning has changed, or you have in some way increased your liability exposure trampoline to the yard). Filing too many claims, in many cases, may also lead to cancellation.

And a word to the wise about keeping your policy in effect. An insurance company can cancel your policy for non-payment of premiums, fraud, or misrepresentation. Your policy may contain clauses or conditions that specify other reasons that could void portions or all of your coverage. Examples include failure to report claims promptly, failure to cooperate fully with the insurance company, and failure to protect the property from further loss. Another example would be using your home for a business (perhaps even providing informal but regular childcare for three or four children not your own) not specifically included in the policy. Make sure you read your policy An insurance company may also cancel or refuse to renew your coverage or raise your premiums if for any reason the property no longer meets their underwriting criteria. For example, perhaps the building has grown too old or the zoning has changed, or you have in some way increased your liability exposure. Filing too many claims, in many cases, may also lead to cancellation.

Insuring Your Mobile Eastern Shore Real Estate – Part I

Insuring Your Mobile Eastern Shore Real Estate – Part II

The Mobile Eastern Shore Real Estate Podcast

June 2010: This month’s edition covers Mobile Eastern Shore real estate market activity and then and we’ll promote the value and importance of home inspections as the summer selling season approaches. Features special guest Terri Murphy of US Learning. Program length: approximately 8 1/2 minutes

There is, however, a painless way to lessen the angst and allow you to cope well (maybe even enjoy) the relocation process–and that is organization. While you may be proficient at researching and hiring a moving company and finding a reliable Realtor to sell your current residence and help you find the perfect Mobile Eastern Shore home, there are numerous “small” steps you can take to eliminate unpleasant surprises later on and to make the process go more smoothly.

FINANCES:
To alleviate any concerns you may have about the financial ramifications of living in a new city, you can compare the cost of living in two places by visiting HomeFair.com. This site will help you calculate how far your salary will go in your new location.

SCHOOLS:
HomeFair.com also provides pertinent information about school systems throughout the U.S. Here you can discover student/teacher ratio, instructional costs per pupil, special programs, number of students going on to higher education, etc. You can also Google the board of education in your new city for information.

AMENITIES:
The Chamber of Commerce can help you learn about religious facilities, cultural opportunities, parks and outdoor activities, hospitals and health care availability, and a myriad of other questions you may have–perhaps adult education

LOCAL REGULATIONS:
You should investigate in advance property taxes and/or local assessments. Learn about average utility charges, trash/recycling rules and facilities, and licensing and car registration procedures in the area of your Mobile Eastern Shore home.

TRANSPORTATION:
Do you require public transportation? Does the new location offer mass transit? Is traffic congestion a problem? Best to be forewarned in this area. Go online to contact the municipal/governmental offices or the Department of Transportation in the new location.

MISCELLANEOUS:
Make arrangements in advance to get legal documents and school and medical records before you leave your present location. Also, if your current bank does not have a branch in the new city, look into setting up a new bank account before you actually move. Begin now to fill out change of address cards to send to magazines, credit card companies, etc. It’s so much easier to do this before moving!

While your move to your new Mobile Eastern Shore home may necessarily be an exciting adventure, by eliminating worries of the unknown and becoming familiar with your new surroundings in advance, you can anticipate and actually look forward to beginning a new phase of your life.

The Mobile Eastern Shore Real Estate Podcast

May 2010: This month’s edition covers Mobile Eastern Shore real estate market activity and then we’ll promote responsible upgrades and the tax credits available for home owners who invest in energy-efficient systems and improvements. Features special guest Terri Murphy of US Learning. Program length: approximately 7 1/2 minutes

USES AND APPLICATIONS: This program can be used in various ways:

1. To purchase a home and its land for rehabilitation

2. To purchase a dwelling at one site and move it to another mortgaged property for rehabilitation

3. To refinance existing secured loans on a home for rehabilitation

4. To convert a one-family dwelling to a two, three, or four family residence OR

5. To convert a multi-family dwelling to a one-family home.

ELIGIBILITY:

Property:

1..Must be a one-to-four family dwelling that is at least one year old

2. If the dwelling has been demolished, some of the foundation must remain

Improvements:

1. All construction must comply with HUD Minimum Property Standards

2. All rehabilitation dealing with thermal or heating/AC systems must be energy efficient

3. Cash-paying home buyers can refinance their Mobile Eastern Shore real estate within six (6) months of purchase in order to make improvements

As with any government funded programs, the property to be purchased is subject to appraisals to determine the “as-is” and “after rehab” values of the real estate. In addition, the Mobile Eastern Shore homeowner will be expected to provide HUD with the following:

1. A plot plan of the site

2. Proposed interior plan of the dwelling

3. Work write-up and cost estimate

HUD also offers an FHA Streamlined 203 (k) program that allows buyers or owners of Mobile Eastern Shore real estate to purchase or refinance a home that needs up to $35,000 of rehab/repair work. Eligible owners may borrow the money even if they don’t have the equity usually required. In addition, the streamlined program requires much less paperwork than does the regular 203 (k) and thus simplifies the process for obtaining funding for improvements/repairs. Typical improvements approved for this program include such things as :

*Roof, gutter, downspout repair/replacement

*HVAC systems

*Plumbing and electrical work

*Basement completion/waterproofing

*Purchase of appliances

*Minor remodeling of kitchens and bathrooms

*Flooring

*Windows and doors

*Decks, patios, porches

A complete list of acceptable uses of the 203 (k) funds can be found here.

To a home loan shopper, there may seem to be an endless–and confusing–array of mortgage types. Of course you want to choose the option that is best suited to your current and future financial situation, but understanding the terminology, types, and monetary ramifications is not always easy. Mortgages generally fall into four categories (fixed rate, adjustable rate, step, and balloon) according to the interest rate and duration of the loan.

Basic terminology;

• Fixed rate–The interest rates do not change during the life of the loan, thus allowing you to know the amount of your payments.
• Adjustable rate (ARM)–the interest rate is tied to certain indexes plus a margin and can fluctuate up or down, thus affecting each payment,
• Step–the interest rate and monthly payment remain the same for a specified period of time. After that the interest will change to the prevailing rate and will remain there for the duration of the loan.
• Balloon–a loan payment that expands after a certain amount of time. Basically it functions similarly to a fixed rate mortgage in the earlier months/years with a delayed steep increase at the end,

The following information outlines the type of mortgage, the loan characteristics, and the situations most appropriate for each one. If, for instance, you plan to live in your Mobile Eastern Shore home more than 10 years and desire stability in payment amounts, then a fixed rate mortgage is for you. If, however, your finances are currently strained, but you know that in 5 to 10 years your monetary situation will improve or that you will most likely move within 10 years, then an ARM or balloon mortgage may be better for you. Being familiar with these options allows you to discuss them intelligently with your real estate agent and/or lender and then select the type which best fits your circumstances.

Fixed rate mortgage (30, 20, 15, 10 years)*

• Interest rate & monthly payment remain the same for the entire term of the loan
• plan to live in property more than 10 years
• like total payment stability

0/1 year adjustable rate mortgage1

• Interest rate & monthly payment remain the same for 10 years
• Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan
• plan to live in property more than 10 years
• like initial payment stability, can accept later changes OR
• plan to move within 10 years
• want loan to remain in force in case plans change

7/23 (2-Step) or ‘30 due in 7′ mortgage

Interest rate & monthly payment remain the same for 7 years

• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan
• plan to live in property more than 10 years
• can tolerate one payment adjustment OR
• plan to move within 7 years
• want to remain in force in case plans change

7/1 year adjustable rate mortgage

*Interest rate & monthly payment remain the same for 7 years
*Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
*plan to live in property more than 7 years
*like initial payment stability, can accept later changes OR
*plan to move within 7 years
*want loan to remain in force in case plans change

7 year balloon mortgage

• Interest rate & monthly payment remain the same for 7 years
• At the end of 7 years, loan is due in full. Borrower must refinance into new loan at prevailing interest rates
• plan to live in property more than 7 years
• are willing to refinance at prevailing market rates OR
• plan to move within 7 years
• like payment stability

In addition, there are variations of the ARM, step, and balloon mortgages which differ primarily in the duration of the loan and of the planned residency.

Another good source of information for first-time Mobile Eastern Shore home buyers is the Department of Housing and Urban Development (HUD), an agency which oversees FHA loans. This type of loan is particularly useful if you have little money for a down payment, less than great credit, or large monthly bills. An FHA loan requires as little as 3% down (and it can be a gift from a relative or friend). In terms of your credit rating, the FHA is primarily concerned that for the past two years you have paid bills in a timely manner and have been steadily employed. With FHA you have to wait only two years after declaring bankruptcy, and your debit-to-credit ratio can be higher than for a conventional loan. You can qualify for an FHA loan if your monthly payments are no more than 43% of your income, and, as with conventional loans, you can choose from many types.

Of course, there are some negatives to consider before taking on an FHA loan. Interest rates generally run about 1/8 of a percentage point higher than conventional rates, but the real disadvantage of an FHA loan is that the borrower must pay an up-front insurance premium of 1.75% of the mortgage if the down payment is less than 20%. This cost can, however, be added to your total loan amount.

So there you have it–an easy-to-understand guide to mortgage types. As always, you should feel free to contact me anytime with questions. I am glad to recommend a number of outstanding mortgage lenders if you are interested in talking with one.

Search all Mobile Eastern Shore homes for sale.

Be patient. You’re getting close to the finish line and will soon be the owner of your first Mobile Eastern Shore home. Just a few more steps to go…

1. Homeowner’s insurance policy

Adequate homeowner’s insurance is a requirement of all lenders, and it is certainly in your best interests to protect the investment you’ll be making in your Mobile Eastern Shore home. To find the policy that is right for you, you should shop around for the best value. Check online for quotes from at least three reputable agencies. Be aware that some companies offer a discount of 30%-40% if you buy online. Other possible discounts can result from insuring both your home and the contents or by insuring your home and your car with the same company. Check to see if you need flood insurance, as many properties in the Mobile Eastern Shore  area do. Know the replacement value of your home, taking into consideration any unique features. Think about probable inflation increases at renewal time. Will your insurance agency automatically adjust your coverage, or will you have to request a change?

2. Preparations before closing

As the settlement date approaches, check with your lender and your closing attorney to make certain all necessary documents are in order and are being prepared. You will also want to contact utility services such as gas, electric, water, cable, and telephone to set up service in your name. Be sure to ask your real estate agent about the type of acceptable payment (usually a certified check) and amount to bring to the closing for any unpaid fees. It is also a good idea to gather all paperwork associated with your purchase (estimates, contract, proof of title search and insurance, home appraisal, and inspection reports) to take to the closing in case a question arises.

3. The walk-through

You are entitled to a walk-through inspection of the property a day or two before closing. This is your final chance to make sure that all conveyed items are present, there is no new damage, agreed-to repairs have been completed, and the home is in good working order. Your Realtor will have a checklist. Items to be checked out are numerous and include the exterior of the home (grading, roof and gutters, garage, siding, paint, concrete, brickwork, doorbell, e.g.) as well as the interior (lighting and fans, appliances, toilets, heating and cooling systems, faucets, electrical outlets, thermostat, fireplace, etc.). The house should be empty, except for conveyed items, and “broom swept“ clean. If any problems are discovered, your Realtor will notify the seller and request repairs or monetary compensation for these items

4. And finally…the closing!

You should have recently received a settlement statement listing all the costs you’ll be required to pay at the settlement table, such as an escrow deposit for taxes and insurance. In most cases you’ll be required to bring a certified check and a photo ID with you. Try to relax at the closing. The attorney, who has most likely conducted many previous settlements, will briefly explain each document you are asked to sign. Don’t be afraid to ask questions or take time to read a particular paper. The attorney will also arrange for the collection and disbursement of all funds

AND, after all these steps have been completed, you will be handed the keys to your first Mobile Eastern Shore home! Congratulations!

Basic Steps for First-time Mobile Eastern Shore Home Buyers
Basic Steps for First-time Mobile Eastern Shore Home Buyers – PART II
Basic Steps for First-time Mobile Eastern Shore Home Buyers – PART III

Okay, you’ve made your lists of: must have” and “would be nice” features, and you’ve identified desirable neighborhoods with the schools and amenities that meet your needs. Now it’s time to seriously shop for your first-time Mobile Eastern Shore home.

Before you even step outside to begin the search, your agent will email to you listings which meet your criteria, and you can “visit” many of them online via a virtual tour. Once you have narrowed down your choices, your agent will arrange for you to look at–in person– your selected properties. A few bits of advice here:

1) Take notes on each home you tour. Too often individual details blur after you’ve seen four (or more) houses in a day.

2) Look past the owner’s furnishings and décor. Concentrate on the features you have identified as important and try to picture yourself actually living in the space.

3) If you have decided that you don’t need a “move-in ready” residence, look at the potential of the property. Would simple cosmetic changes make a considerable difference?

4) Listen to both your head and your heart. Sometimes a property really does “speak” to you, and you know you have found your new home.

Now it’s time to make an offer! Your agent will provide you with comparable prices (comps) of similar homes which have recently sold in the neighborhood to help you decide how much you are willing to offer. He/she will prepare a contract which will include price; amount of down payment and deposit (earnest money); your financing arrangements; inspection rights; conveyance of any appliances, window treatments, furnishings, etc.; the settlement date; and any contingencies you might want to add.

Once your agent presents you offer to the seller, negotiations may begin. The seller may counter your offered price or any other part of the contract, and you may, in turn, counter such requests. You may have to offer more money in price, but you can also ask the seller to cover all or some of your closing costs or to make repairs that ordinarily would not be covered. The best solution, of course, is to reach an agreement that makes both the buyer and the seller happy. A word of caution here: it is easy to get caught up in the excitement of buying your first [city] home and in the negotiation process itself. Stop often for a reality check. Don’t get so personally involved that you lose sight of what you really want–or can afford! Occasionally you may have to walk away from a potential deal, but keep in mind that there are hundreds more homes from which to choose.

More often than not, however, the deal is finalized, and you will quickly proceed to having a home inspection, a HVAC inspection, and an environmental test (asbestos, mold, radon). Your agent can arrange for these important inspections to ensure that the property meets expected standards. He/she will also deal with the seller to take care of any exposed discrepancies and/or unexpected problems

What‘s next? Preparation for your closing, a walk-through of the property, and then the actual settlement! Watch this space for the final installment of this series.

Basic Steps for First-time Mobile Eastern Shore Home Buyers – PART II

Basic Steps for First-time Mobile Eastern Shore Home Buyers

1. Selecting a property. First decide on a location and the type of property you are interested in. You might also consider proximity to good schools, public services, shopping centers, highways, etc.

Another decision will deal with the type of property you want to own–a single family residence, a multi-family unit, or a vacation rental home. Discuss with you realtor and tax advisor the pros and cons of each to decide which will be most advantageous for you.

2. Examining your finances. In addition to a monthly mortgage payment, investment property expenses can also include taxes, property management fees, utilities, insurance for fire and floods, repair and maintenance costs, condo fees, and periods of vacancy. Be prepared to have cash on hand for a 20% to 30% down payment (or investigate other options). GoodMortgage.com is a helpful tool to assist you in calculating costs and probable financial outcomes.

Also keep in mind that long term (5 to 10 years) ownership is usually best for the average investment. The shorter the length of time you hold the property, the greater the risk.

3. Repairing and updating. Some investment properties require initial repairs/renovation ranging from cosmetic to structural. Unless you have the time and expertise needed to make such repairs, look for skilled professional to do the work for you. Keep in mind that most renters are looking for a good location and a home that is clean and in good working order; granite counter tops and top of the line appliances are usually neither necessary nor cost effective.

4. Acting as a landlord. Being a successful absentee owner of Mobile Eastern Shore real estate will require diligence and responsibility. Carefully screen all potential tenants. Run a credit check and find out from prior landlords if they were good tenants who paid the rent on time, treated the property with care, and were considerate neighbors. The more selective you are, the more successful your lessor/lessee relations will be.

As a landlord you have both rights and responsibilities, and you need to be mindful of each.

Learn more about investing in Mobile Eastern Shore real estate.

Search all Mobile Eastern Shore real estate and homes for sale.

Too good to be true? Perhaps. Buyers of foreclosed property, especially if it has been unoccupied and not maintained for some time, must be acutely aware of possible problems and trouble spots involved in such a sale and may have to realistically face some unpleasant facts.

A cautious buyer should look for signs which indicate that all is not well with a piece of Mobile Eastern Shore real estate.

1. The presence of mold. Once mold takes hold, it is almost impossible to get rid of. Look for places which have been excessively painted in an attempt to cover up mold.

2. Lack of heat for months in a home not properly winterized. Result? Burst pipes and water damage.

3. Hints of water damage. Peeling, bubbling, or discolored paint may occur as a result of moisture. Other evidence of water damage includes swelling in walls/ceilings, stains, and             a musty odor.

4. Blocked drains or pipes may lead to sewage problems.

5. Evidence of vandalism or break-ins. Signs of such activity include holes punched in walls and broken windows. Theft of appliances, fixtures, air conditioning/heating units,             pipes, and electrical wiring is also of concern.  Were the stolen items properly removed or carelessly ripped from their location?

6. Indications of furnace malfunction or soot damage. Telltale signs include black cobwebs, greasy grey residue on walls, or an oily odor.

7. Renovations in an older home. You would be wise to check to see if permits were issued. Was the work performed by a professional? Does it conform to required Mobile Eastern Shore real estate building codes? Was asbestos disturbed during construction?

8. Debris dumped in the yard. You will be required to remove such refuse in a timely (and possibly expensive) manner.

9. Occupation by uninvited critters. Wild animals often live in abandoned structures. Look for snakes, rodent infestation, and unexpected “nests.”

Obviously, you must insist on a thorough inspection of your Mobile Eastern Shore real estate to avoid buying a badly flawed foreclosure filled with unpleasant and costly surprises. Be sure to request air quality and surface testing; it is well worth the little extra it costs. You should also inquire about any corrections that have been made to address damages and talk to the company who performed the repairs.

By diligently doing your homework and actively anticipating problems, you may just find the foreclosure which fits your needs and is indeed a bargain!