The following is a summary of the $75 billion dollar rescue plan as more details emerged from the Obama administration on loan modifications for struggling homeowners. This is an effort to prevent future foreclosures. Briefly, this initiative can be summarized as follows:

• Struggling homeowners who are unable to pay their current mortgage loan payment may be able to have their mortgages refinanced providing Fannie Mae or Freddie Mac are the loan originators.
• Borrows would have to submit appropriate documents such as pay stubs, income tax returns and other financial information to support their income. They must also be willing to sign an affidavit acknowledging their “hardship” situation.
• Mortgage payments can be reduced by lowering the interest rate to as low as 2 percent in some cases.
• Additionally, the new mortgage loan would need to be reduced to no more than 38 percent of the borrower’s income and the debt to income ratio would need to be reduced to at least 31 percent.
• If necessary, in order to make the numbers work, loan terms can be extended to up to 40 years as opposed to traditional 30 year terms.
• In extreme cases, if the above two options still do not reduce the loan to 38 percent of the borrower’s income, then a “forgive the difference” in the principal can be exercised.

Unfortunately, for those borrowers who owe more than the value of the home there is little chance any existing program can be of assistance. Government officials have not been able to address these circumstances.

Homeowners who find themselves in a desperate situation or who may be facing foreclosure can be eligible for the program as long as the loan was originated before January 1, 2009; unpaid principal balances can be up to $700,000 plus. You do not have to be delinquent in order to qualify. You have until 2010 to apply for the refinance program. If you are not sure if your loan is owned by Fannie Mae or Freddie Mac, you can call your mortgage loan service provider and they can share that information with you.

Here are two websites to visit in order to get additional details: Fannie Mae or Freddie Mac.

The team at casanuevaguide.com recommends visiting with a Home Loan Counseling Agent in your area or contact the U.S. Department of Housing and Urban Development's Web site www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

Have questions about financing and getting approved? We can help, just ask. 

Ever wonder why some homes sell quickly and others seem to stay on the market longer? In some cases, it may be out of the seller's control because of market conditions or other factors, but often, a prepared seller will have success in selling his or her home quickly and for a price they want.

Realtors in the Houston area say that in many cases, buyers are prepared to purchase a new home but need to sell their existing home in order to make a move. For those considering selling their home or have already listed their home for sale, make sure everything has been done to make the home look its best.

Better Homes and Gardens offers some helpful tips in preparing a home for sale:

• Eliminate clutter in all areas of your home to create an impression of spaciousness and plentiful storage space. A great way to clear away clutter and make money at the same time is to hold a yard or garage sale.
• Put out clean towels, new soap, a nice tablecloth, and fresh flowers.
• Don't be at home during a showing or open house. Your absence will put buyers at ease so they'll feel free to linger and ask questions.
• If you do stay, be polite, but let your sales associate do the talking. 
• Don't apologize for the condition of your home.
• Make sure kids and pets are out of the house.
• Nothing makes a home look newer faster than a fresh coat of paint. Neutral colors such as beige, white, off-white and gray have a broad appeal to prospective buyers. These colors suggest newness and cleanliness. It's a good idea to stick to neutrals when making any improvements prior to selling your home.

It's also very important to make sure the home is clean - make sure counters, floors, window sills and other key areas have a clean appearance, which also conveys a message that the home is well taken care of.
Realtor.org offers additional help in selling a home, citing an article from US News and World Reports:

Get them inside. The first thing a prospective buyer notices about a home is not the living room but the front yard. Cut the grass, trim the hedges, rake those leaves, sweep the sidewalks and power-wash the driveway. And make sure you don't have too many potted plants scattered around the property.

Properly preparing a home for resale does take some effort but the extra work a homeowner puts into the home will prove a wise investment and help your home to stand out among all others.

We hope you found what you were looking for in this article. If not, feel free to contact us - we're happy to help!

The information listed below is for general knowledge only and should never be taken as legal advice.

• Contract for Deed

Is a written agreement between a buyer and seller for real estate property - either land or structure. The agreement is in writing and includes all of the details on agreed payment agreements from the buyer to the seller. Until the final payment or total amount of agreed purchase price is met - the deed to the property remains in the name of the seller.

• Option to Avoid Tax Foreclosure for the Elderly or Disabled - File a Tax Deferment

If you do not pay your property taxes on your real estate property, the government can file a court order and seize your property (foreclose) for non-payment.

If you or your family member (elderly parents for example) are struggling with the inability to pay property taxes - first contact the tax office and begin open and candid discussions and communications with tax officials to explain the situation.

You also have the right to file for a Tax Deferment which basically stalls the payment on the taxes. In the event of a serious illness that results in death - the government can then take possession of the property and order the sale in order to pay for the back taxes. Although you are not charged penalties under the Tax Deferment - you still have to pay the accrued interest. However, if there is a surviving spouse who is at least 55 years or older they can also file for a Tax Deferment.

Example of Disability: If you are a parent caring for a disabled child for example; you can temporarily transfer an interest in the ownership of the property to the child, file it as their homestead and then file for the Tax Deferment under their name.

Important Note: Do not wait until there is an official court order to seize the property by the Sheriff's Department. Act immediately upon realizing the inability to pay.

• Tax Exemptions

You can also file for a Tax Exemption. This law gives you a reduced amount of your total property tax if you are disabled or elderly. You can file for both a Tax Deferment and a Tax Exemption.

Be sure to contact your local tax office to get complete details on these options. This information is meant to be information only and not legal advice.

The program was initially set to expire November 30, and is credited for stimulating the nation’s housing industry. However, the Commerce Department reports that after seeing a decline in new-home sales, some industry experts blamed consumer uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years. The tax credits will be available to home buyers who sign sales agreements by the end of April. They would have 60 days or until June 30 to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

Indoor natural gas appliances

• Water heaters
• Tankless water heaters
• Furnace
• Ranges
• Clothes dryers             →This week - Dryers 
• Fireplaces

Outdoor natural gas appliances

• Grills
• Gas lights
• Patio heaters
• Patio campfire
• Pool and spa heaters
• Standby generators

 just to be sure you are getting the best deal possible

Every year you should be checking your insurance coverage against competing companies - you want to be sure you are getting the best coverage at the best rates.

Here is a quick check list for you to keep in mind.....

• Always compare at least three insurance carriers - you'd be surprised at the difference in programs
• Before deciding to purchase a policy - check with your local better business bureau - just to ensure that you have the latest news regarding your future carrier. What has been their track record in pay outs - especially in disasters like Hurricane Katrina and Ike? Were there an unusually high number of disgruntled customers? Is the company financially sound?
• Service is huge - does your present carrier appreciate your business? Are they looking out for your best interest? Are your questions answered?
• Updating your policy should be your agent's number one priority - upgrades to your home that increased it's value. What about personal property like antiques - jewelry - electronic equipment - are you adequately covered?
• Don't forget about the deductible - can you risk increasing the deductible?
• Stay on top of your community real estate values and the cost of building new homes - would you know how much it would cost to replace your home in the event of a fire?
• Ask about multi-package discounts if you include auto and life insurance coverage.
• Remember to ask for any discounts you may be entitled to - for example - installing an alarm system, security lighting, senior homeowner, veterans, firefighter or teacher.

The Federal Trade Commission (FTC) states that the law allows you to request an investigation of information in your file that you dispute as inaccurate or incomplete, and there is NO CHARGE for this. The FTC also advises consumers that anything a credit repair company can do legally; you can do yourself for little or no cost.

According to the Fair Credit Reporting Act (FCRA):

• You’re entitled to a free report if a company takes “adverse action” against you, like denying your application for credit, insurance, or employment. You have to ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
• Each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.
• The three companies have a central website, a toll-free telephone number, and a mailing address for consumers to order the free annual credit reports the government entitles them to.

To order, click on annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

A form can be printed from the FTC’s website, at www.ftc.gov/credit. You can also order reports from each of the three consumer reporting companies at the same time, or you can stagger your requests, ordering one from each company throughout the year from the central address.

The FTC also says not to contact the three nationwide consumer reporting companies individually or at another address because you may end up paying for a report that you’re entitled to get for free. In fact, each consumer reporting company may charge you up to $10.50 to purchase an additional copy of your report within a 12-month period. 

It doesn’t cost anything to dispute mistakes or outdated items on your credit report. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider.

The information provided to you by Casa Nueva Guide reflects topics that are most important to consumers, with the goal of providing easy to understand information and a trusted resource from which the news or information is gathered.

For more information on this topic, email us or visit the FTC website.

• Have spouses who retired with 100% disability rating from the VA
• Widows of service members killed in the line of duty
• Spouses of retired service members who have a 100% disability rating from the VA under the Chapter 61, Title 10 retirement ruling
• Spouses whose husbands are serving 180 days or more of active duty and are trying to get relocated to their husband’s new duty station

Today's lofts and condos are beautiful and thoughtfully designed. Developers and builders have carefully considered the needs of today's diverse consumer market - incorporating high-end features and energy efficiency while maximizing views of the beautiful city skyline. Houston offers a number of mid-rise and high-rise lofts from which to choose in locations that span from mid town to the Heights area to downtown.

Warehouse Type Lofts - built from historic buildings in Downtown Houston. Designed with large open spaces that work well as combination work/home accommodations. Here are some to consider:

Bayou Lofts, Lofts at Texas Building, Keystone Lofts, San Jacinto Lofts, St. Germain Lofts, Hermann Lofts, Herrin Lofts, City View Lofts, Franklin Lofts

Luxury Lofts - relatively new with modern appliances and amenities like granite counters, stainless steel appliances, hardwoods and extra design elements. A few lofts within this category are:

Capitol Lofts, Commerce Towers, Empire Lofts, Kirby Lofts, Manhattan Lofts, Herman Park Lofts, Palisade Palms, The Mark, The Stanford, The Tanglewood, Treemont Towers and Washington Lofts

As a general rule, lofts run between the low $100's to one million plus.

Houston's Newest Lofts
One of the newest loft developments in the Houston area is Bridge 20 Lofts. Known for its location overlooking White Oak Bayou and the nationally known Historic Heights Esplanade, Bridge 20 Lofts are luxury three-story lofts – each featuring its own rooftop terrace. The gated loft community is the newest project of Gramercy Design Group – a division of Cornerbrook Development.

Now open, Bridge 20 Lofts are priced from the $240,000s and boast a prime location minutes from downtown, the growing nightlife of Mid Town and Washington Avenue and a long list of employment, medical, cultural and retail centers.

Within each design, home shoppers will notice an obvious attention to detail in crown mouldings, custom cabinetry and raised ceilings, as well as granite countertops, thoughtfully designed gourmet kitchens and expansive windows creating a luxury home in a location that boasts the best of urban living. 

1. You have the right to view homes without paying a "showing" fee to a real estate agent.

   Licensed real estate agents work for commissions which are paid by the seller, not the buyer. The selling agent's commission is normally 3% of the sales price and is paid by the seller at closing.* Agents work at their own risk, and if you do not buy a house, the agent receives nothing. To find an agent, get a referral from a trusted friend or associate. Make sure the agent is licensed by checking with the state real estate commission or your local board of Realtors.

   * In the case of a used home, there is also typically a listing agent who also receives a typical commission of 3%. For a "for sale by owner" property or a new home sold by the builder, there may be no listing agent.

2. You have the right to the lowest interest rate that is available to you.

   While it is reasonable for a lender to charge a slightly higher interest rate to someone with a lower credit score or other risk factor, studies have found that many well-qualified Latino home buyers are routinely charged higher interest rates, even when they would have qualified for a lower rate. Know your credit score and check current interest rates. The rate you pay can make a big difference in your monthly payment and how fast you build equity in your home.

3. You have the right to not be charged excessive loan fees.

   Do not pay an excessive application fee or excessive closing costs. While loan fees that are considered reasonable vary, in general the application fee is about $500, and the loan origination fee is typically 1 point (1 point = 1% of the purchase price). You can pay one or more points to lower your interest rate, but that is optional. Beware of loan companies that charge more than 1 point to originate your loan. There have been reports of predatory lenders charging up to 10 points.

4. You have the right to an independent appraisal and property inspection.

   In many scams, a home is sold for more than its fair market value. Understand that in the United States, property values are based on comparable appraisals for homes recently sold in the same neighborhood. An ethical mortgage lender will not lend more than a home is worth. Also, be very cautious of seller financing. Overpaying can make it difficult or impossible to resell. Exercise your right to hire a professional appraiser of your choice. Whether you are purchasing a new or used home, it is always a good idea to hire a professional independent property inspector. Often, an unethical seller will try to cover up major flaws with new paint, carpet, etc. Don't let your excitement about getting a new home cloud your judgment - have the property inspected.

5. You have the right to report predatory lending and other scams if you are not a U.S. citizen.

   Many con artists target Latinos because they believe Latinos will be reluctant to report abuse to legal enforcement authorities. In truth, many Latinos are hesitant to deal with U.S. authorities, whether because of their citizenship status, or due to attitudes about authorities from their home countries. Don't be a silent victim. Major law enforcement agencies have made real estate fraud a priority. If you have questions about how reporting a crime will affect your presence in this country, contact a lawyer or a community group, such as the Association for the Advancement of Mexican Americans or the Mexican American Legal Defense and Educational Fund.

6. You may have the right to a home loan with reasonable terms even if you have issues such as no traditional credit, cash (non W-2) income, or no Social Security number.

   Just because you are not the "perfect" applicant for a home loan doesn't mean you must do business with someone who may be a predatory lender or other type of scam artist. Many applicants are not "perfect," but with recent changes in lending guidelines, they are able to get approved for loans from reputable companies with fair terms. A slightly higher interest rate may be required in some cases, but you can make sure you have the right to refinance in the future at a more favorable rate.

7. You may have the right to participate in programs that can help you with the down payment and closing costs.

   "If it sounds too good to be true, it probably is." This old saying is almost always true, but in this case, it isn't. There are reputable programs that will help buyers with down payments and closing costs, assuming certain conditions are met, such as family income and agreeing to stay in the home for a certain number of years. These "gift" programs are offered by government agencies and non-profit organizations that recognize the importance of homeownership in building stable communities.

8. You have the right to understand what documents you are signing, and you have the right to be given documents in your language.

   Know what you are signing, including the interest rate, fees, the prepayment penalty if any, etc. Don't let anyone pressure you into signing any document you haven't read or don't understand. There have been many stories of scam artists who switch documents from Spanish to English at the last minute, or who sneak in extra documents, tricking buyers into agreeing to higher interest rates and other onerous terms.

9. You have the right to refinance and not pay prepayment penalties.

   Requiring huge prepayment penalties on loans with excessively high interest rates has been one of the predatory lender's favorite tricks. Most reputable lenders will offer borrowers the right to refinance or prepay their loans at a future date with no penalties. Again, ask questions and understand what you are signing.

10. You have the right to know why you were turned down for a loan, and you have the right to re-apply.

    Many predatory lenders succeed because of the desperation that home buyers feel after they have been rejected for a home loan. You have the right to know why you were turned down for a loan, and a good loan officer will advise you of steps you can take to be approved in the future. Typically, it takes no longer than one year (sometimes less) to repair any credit problems or other issues, and to be ready to get approved for a loan with the most favorable rate and terms possible.