What is a short sale?  First and foremost, it may be a viable way to avoid a foreclosure.  More specifically, for the homeowner who can no longer make their mortgage payment because of a real hardship, i.e. job loss, job transfer, divorce, or an adjustable rate mortgage (ARM) that is resetting at a higher interest rate, a Short Sale may be an option for the homeowner worried about foreclosure.  A Short Sale is a detailed but fairly straightforward process that can work to benefit Buyer, Seller and even the Lender. The Buyer gets a home for a good price, the Seller gets to avoid the disruption of a foreclosure and a serious “hit” on their credit rating, and the Lender avoids the delay and expense of foreclosing on a property they don't want to own.  (A REALTOR® may be able to help you decide if a short sale is a viable option.)

Even though Short Sales have been a staple for investors for some time, until recently, most homeowners probably thought the only option was letting the Lender foreclose.  However, a foreclosure may stay on your credit record for 7 to 10 years, which is why some experts are now advocating a Short Sale.  If your Lender agrees to a Short Sale, you may then hire a REALTOR® to find a Buyer for the house; you may accept an offer for less than is owed to the Lender, the Lender may then agree to absorb some or all of the loss (the Lender may still demand the homeowner share in the loss.)

Before submitting an offer, the REALTOR® will first perform a Comparative Market Analysis (CMA) to determine the price at which similar properties are being marketed, and the average price of those that have sold recently.  This information is submitted to the Lender along with a hardship letter from the Seller explaining why they cannot continue to pay the mortgage, plus supporting documentation such as tax returns, bank statements, and information and photos of the home.  The way mortgages are sold, the Lender can be anywhere in the country and certainly not aware of local real estate conditions.  (This is when the REALTOR® can become your local market expert and your staunchest advocate.)

The Lender may then order an appraisal or a Broker Price Opinion (BPO) from an independent party.  This appraisal or BPO is the key to the whole process. If the property is valued too high, the Lender may not accept a low offer.  Often Lenders will accept an offer lower than the BPO, but usually not much more than 10% lower, though that may vary depending on the company and perhaps the circumstances.  The sales contract should specifically disclose to all parties that the offer is contingent on the Lender accepting the net proceeds of a Short Sale offer.  In fact, if the property is listed for sale by a REALTOR®, the listing must disclose that the property may become a Short Sale and that the offer is subject to Third Party Approval. 

 The homeowner should display a genuine desire to get a grip on spending and finances when attempting to negotiate a Short Sale.  One way to show good faith is to scale back spending.  Charging expensive jewelry on a credit card for example, may cause a Lender to be less inclined to do a homeowner any favors on the sale of a home.

On the down side, this process does take time, and a response from the Lender may take months. Expect at least 2-3 months or longer before a Short Sale can be finalized, even if the Lender accepts the first offer.  If they do not accept the first offer, the Lender may wait to see if other offers are forthcoming.  Often, the Lenders are not communicative during this waiting period as the decision-making process goes behind closed doors with anonymous number-crunchers.  (The homeowner should contact the Lender at the beginning of the process and introduce his/her REALTOR® to open the lines of communication.)

If the property is an investment and not the Seller’s primary residence, the IRS may treat the amount of the mortgage that is forgiven by the Lender as taxable income and the Seller may need to come up with the cash to cover the taxes.  (The homeowner should contact an accountant for any tax information or assistance.)

While the Short Sale may be a viable option for homeowners facing hardship, the better option of course, is to find some way to stay in the home and to get caught up on mortgage payments.  One of the first steps is to determine if the Lender is willing to restructure the loan, or forego a couple of monthly payments to help a homeowner get back in good standing. Apparently, more and more Lenders are willing to make accommodations to avoid taking the property back.  Lenders hate to take over homes, especially in a declining market, so if a Short Sale seems to be in your future, you shouldn’t under-estimate the willingness of your Lender to make concessions.

Dan Peck, REALTOR® Manager

GRI, CRS, ABR

The Jeanne & Dan Team

RE/MAX In Action

Martinsburg, Shepherdstown, Harpers Ferry

 Last week a leading gauge of US home sales showed unexpected strength. April Pending Homes Sales rose 6.3%, way over expectations of a 1.0% drop! This measure of signed sales contracts registered a level of 88.2; it’s highest in six months. A 100 reading equals the average sales activity in 2001. Experts are saying the April figure suggests the pace of home sales has clearly stopped its free fall and might soon rebound. The index measures existing home sales, currently about 85% of the market.

The other economic news that was positive for housing came from Fed Chairman Ben Bernanke. In a speech Monday, he said he believes the economy is out of danger and the Fed would now pay "close attention" to inflation. Experts immediately interpreted this to mean rate cuts are officially over. Some feel a hike may come as soon as August and many consider a 0.25% increase likely for October. This is good news because while the Fed was in rate trimming mode, many potential homebuyers stayed on the sidelines, waiting for rates to fall more. Now they need to get back in the game and make sure they don't wait and get caught with rates climbing back up! 

Perhaps the honor Ms. Kozak is proudest of, however, is the Carol Snyder Memorial Good Neighbor Award which was presented to Jeanne for outstanding service to clients, the community (both locally and nationally) and her profession.  A few of the many good deeds mentioned are her semi-annual trips to the Mississippi Delta region to build houses for Habitat For Humanity, a fund raiser for The Family Readiness Group in support of the local Air National Guard and Army National Guard bases, and her many acts of kindness to those in need.

Jeanne. Kozak places a great priority on results and getting things done.  Highly recognized for this by her peers, Jeanne is currently serving as President Elect of The Eastern Panhandle Board of Realtors where she participates on several committees.  She also serves on the Board of Directors of the West Virginia Association of Realtors.

Originally from Kansas, Jeanne relocated to West Virginia and entered the banking industry in the early 80’s.  Later she and her husband started a new homes construction company for which Jeanne still holds a West Virginia Contractor License.  This was the perfect blend of careers and experiences to prepare Jeanne for her third and present career in real estate.  Her will to succeed was apparent from the start, with Rookie of the Year honors bestowed upon her in 1991.

Jeanne admits she struggles to find personal time, but whenever possible she enjoys relaxing at home with her Jack Russell Terriers, attracting bluebirds and purple martins to her feeders and nest boxes, and working in her gardens.

DRYER SAFETY TIPS

Thousands of home fires and injuries occur each year as a result of excessive heat buildup in clothes dryers caused by blockage of the airflow through the dryer and the attached venting system. Most of these fires could easily be prevented with simple and regular maintenance.

Lint screens and enclosures should be checked and cleaned after each load. Lint should also be regularly removed from accessible points at the dryer vent hose connection and exterior vent cover. Even with the regular cleaning of a dryer lint trap, it is possible for a significant amount of lint to accumulate at one or more points in the duct.

Vent system blockage also causes the dryer motor to work harder and possibly overheat. This excessive heat can result in the ignition of trapped lint or other combustible materials in or close to the duct or can prevent proper drying of the clothes – often the first sign of a problem with a dryer venting system.

The entire venting system should be periodically checked for damage, leakage, or blockage from lint, bird nests, rodents, etc. Any substantial blockage, whether from lint build-up or other restrictions in the vent hose or ductwork, such as crimped sections, undersized fittings, etc., will obstruct the airflow through the dryer as well as the venting system.

Lightweight, flexible plastic or aluminum vent materials are especially susceptible to blockage, damage, or burn though. Screws should not be used to hold sections together, as even only one screw can be enough to catch some lint, allowing for the build-up of lint that can eventually obstruct air flow. While more difficult to work with, solid, metal ductwork is the best option for dryer venting systems.

At least annually, the vent duct should be disconnected and cleaned out along its entire length, including the exterior damper and cover and portions of the system within the dryer itself (with electric power off). The base of vertical sections will likely contain the most accumulated material.

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. More home safety and maintenance information is available online at www.housemaster.com.

Copyright ©  HMA Franchise Systems, Inc.

WINTER-END ROOF CHECK

The cold and storms of the winter season can wreak havoc on the exterior of a home and the surrounding property. Sometimes it isn’t that there is significant damage, but simply the fact that it may have been several months since you last paid attention or attempted any outdoor maintenance. Now is the time to do a winter-end check to make sure everything is in order and ready to withstand those spring time showers and the pending heat of summer.

While all exterior areas should be checked periodically, one area that typically requires special attention at the end of the winter season is the roof. To identify possible roofing concerns, look for:

• Ceiling stains – A possible warning sign that your roof system needs repair or replacement. If localized, it may be an isolated point of damage or flashing leak. Ceiling stains can also be associated with excessive attic moisture and/or ice dam conditions, which may require additional attic ventilation and/or insulation to prevent a recurrence. If there are stains on lower level ceilings, a plumbing leak could be the cause.
  
• Loose or missing shingles – Any loose or missing shingles should be repaired or replaced immediately to avoid additional leakage and damage to the roof deck or interior of your home.
  
• Loose, lifted or cracked flashing – This is the metal or other type membrane found at the base of chimneys and roof penetrations. Damaged flashing should be repaired to prevent leakage.
  
• Lifted or curled shingles – This may be an indication the roof is worn and near or at the end of its service life. If found just in an isolated area, spot replacement may be possible, but if widespread, get a professional opinion on the roof’s condition.
  
• Heavy granules buildup in gutter or at base of downspouts – The granules on roof shingles gradually wear away to the point where the underlying material is exposed over large areas. Once this happens the rate of shingle deterioration accelerates. If excessive, it may indicate aging shingles that need replacement.

If you have questions on your roof system, consider utilizing the services of a professional home inspector or qualified roofing contractor to determine conditions.

The increase in sales is encouraging although it's uncertain whether the positive growth rate can be maintained with the return to more-normal winter temperatures as we move into 2007," wrote Paul Ferley, an economist for BMO Nesbitt Burns. "As well, some caution is still warranted on the possibility of housing spilling over into other areas of the economy given the return to declining home prices."

To find a local quality contractor click here! click here

Pre-Hiring The following information can be used as an outline for choosing a reputable contractor. By utilizing this information, you can potentially eliminate problems by choosing the right contractor the first time. Before committing to a construction project of any kind you should know the following.............

Questions to ask Yourself.
What work needs to be done? Will the work add value to the property? How much do you have budgeted for the work? What inconveniences will be experienced while work is being done?

Getting Bids
You should get at least three competitive bids for your project. Bids will vary from contractor to contractor. Sometimes these bids will vary dramatically. Going for the lowest bid is the basic idea but, beware of the "low ball" bid. This can result in unsatisfactory work that will cost you more in the long run. Make sure that the bids include quality materials that are guaranteed by the supplier or manufacturer. Competitive bids are free of charge and will ensure you pay a competitive price for your project.

Contractors License?
Ask to see their current license. Most states require that contractors be licensed. You should also verify licensing with your Local State License Board. Licensing Info "Click Here"

Contractors Insurance?
Ask for proof of insurance. Take the information and call the insurance company to verify that it is currently up to date. Also, if they have other employees, ask if they have workman's compensation. This is required by law. If the contractor is not insured you could be liable for any accidents. Don't put yourself in this situation.

References
Ask for references!! This can be one of your most valuable resources. You can ask specific questions about the contractor such as " Was the job done in a timely manor ?, Was the work satisfactory ?, Would you refer the contractor to friends or family ?" Also, contact local consumer agency such as the Better Business Bureau or the state registrar to see if any complaints have been filed. Numbers are listed above with the link Local State License Board.

Signing a Contract
Make sure that you understand every detail of the contract before signing. The contract should include complete information on the contractor (ex. name, address, phone numbers, license numbers, etc...) and description of the job (ex. materials, time schedule, clean up after completion, total price, payment terms, etc...). NEVER pay everything up front. The best way to pay for your project is in two separate payments called "draws". One draw in the beginning of the job and the other after the job is completed. This is a happy medium that gives you protection and at the same time allows the contractor to have enough money for needed business supplies and payroll. Sometimes in larger commercial jobs two draws would not make much sense. In this situation several draws should be made as the work progresses. The goal is to find a balance that does not put either the contractor or the client at risk. Also, any warranties need to be in writing. Don't take anything for granted. Get a copy of the contract for your records.

During and Completion
Get involved with the contractor and his crew. Tell them exactly what you want. When the job is done do a final walk through and make a punchlist. Have the contractor touch up or fix anything that is unsatisfactory. Follow Up Upon completion the job should be done up to your standards. The contract and labor warranty are very important things to remember, the contractor should guarantee the labor side of the warranty against certain defects. A one to three year warranty is not uncommon. So, You should be covered by labor (contractor warranty) and there will be a manufacturer warranty that covers the material side of the contract. Another thing to remember: if problems arise during or after the job is completed you can call the state registrar of contractors. If there is no state registrar then call the agency of the level of government that is in charge of that division. They will be able to give you numbers to assist you with your problem. The BBB. is a good number to call also but, they are generally there only to take and keep records of complaints. We want to give you numbers to call for agencies that can take action and help you directly with your problem.

Laughter is the best medicine.

The benefits of a belly laugh
No matter why you are giggling, studies have shown that a laugh will do you good. Laughter helps you deal with a variety of maladies including the stress of daily life. The benefit of laughter on your health is no joke. A sense of humor can't cure all ailments, but data is mounting about the things that laughter can do.

Short-term benefits
A good laugh has great short-term effects. When you start to laugh, it doesn't just lighten your load mentally, it actually induces physical changes in your body, beginning with your face.

Laughter can:
  •  Stimulate your organs.  Laughter enhances your intake of oxygen-rich air, stimulates your heart, lungs and muscles, and increases the endorphins that are released by your brain.
  •  Activate your stress response.  A rollicking laugh fires up and then cools down your stress response, and increases your heart rate and blood pressure. The result? A good, relaxed feeling.
  •  Soothe tension and tummy aches.  Laughter can ease digestion and stimulate circulation which helps reduce some of the physical symptoms of stress.

Long-term effects
Laughter isn't only good for a quick pick-me-up, it's also good for you over the long haul.

Laughter may:
  •  Improve your immune system.  Negative thoughts manifest into chemical reactions that can affect your body by bringing more stress into your system and by decreasing your immunity. In contrast, positive thoughts actually release neuropeptides that help fight stress and potentially more serious illnesses.
  •  Relieve pain.  Research increasingly shows that laughter may ease pain by causing the body to produce its own natural pain killers.
  •  Increase personal satisfaction.  Laughter can also make difficult situations a little bit easier.

How to have or gain a sense of humor
Are you afraid you have an underdeveloped or nonexistent funny bone? Developing or refining your own particular sense of humor may be easier than you think.
  •  Put humor on your horizon.  Find a few simple items, such as photos or comic strips that elicit a chuckle from you or others. Then hang them at home, in your office or even on the visor of your car.
  •  Laugh and the world laughs with you.  Develop a sense of humor about your own situation, and watch your stress begin to fade away.
  •  Think positive.  Look for the positive or the humorous in every situation, and surround yourself with others who do the same.
  •  Knock-knock.  Browse through your local bookstore or library's selection of joke books to get a few rib-ticklers in your repertoire that you can share with friends.

Laughter is the best medicine
Go ahead and try it. Turn the corners of your mouth up into a smile and then give a laugh, even if it feels a little forced. Once you've had your hearty chuckle, take stock of how you feel. Are your muscles a little less tense? Do you feel more relaxed or buoyant? That's the natural wonder of laughter at work.
Source: mayoclinic.com

HOME HEALTH AND SAFETY QUICKCHECK

Most of us schedule an annual personal physical with our family doctor. When you consider the amount of time your family spends at home, it makes total sense to give your home an annual physical as well. HouseMaster has prepared a list of some basic healthy house issues to assist you in performing your home’s physical. Set aside some time to review the following:

• Humidifiers/Dehumidifiers. Humidifiers add moisture to house air and are typically needed when a warm air heating system is operational. Dehumidifiers remove moisture from the air and are typically used in basements or crawlspace areas.
  
  
  • Both of these moisture control devices should be checked regularly during usage periods.
  • Check to make sure there is no leakage or overflowing of water onto the heating system and all drain lines properly dispose of the water.
  • Some dehumidifiers have to be manually emptied. If this is inconvenient, replace with a unit with an automatic shut-off or drain.
  • They should be thoroughly cleaned before or after seasonal use, and as needed otherwise. Remove any slime buildup with a water/bleach solution or use the cleaning agents recommended by the manufacturer.
  
  
  
• Alarms/Detectors. Check all safety and security alarms regularly; replace older alarms (after five years or as otherwise recommended by the manufacturer):
  
  
  • Smoke/Fire Alarms. These are your family’s first line of defense/warning in the event of a fire/smoke emergency. Change the batteries in all of your smoke/fire alarms at least annually. Set a regular date when all are changed each year.
  • CO Monitors. Carbon Monoxide is odorless and colorless. A CO detector is the only way to identify elevated levels of CO in your home before physical injury occurs. If you don’t have CO monitors protecting your home from this toxic gas, you should act immediately and install them in strategic locations near the sleeping areas and other points recommended by the manufacturer or local officials. Check that presently installed units are operational.
  • Radon Testing. Check with your local municipal building department and inquire if radon gas is a community health threat. If it is, you should test your home for the presence of this invisible, odorless gas.
  • Security Systems. All too often homeowners disengage their security alarm to avoid nuisance calls. This puts them at a security risk. If this is the case in your home, check with an alarm company to see if other options are better suited for your family.
  
  
  
• EMERGENCY PREPARATION. Prepare these essential items for routine activities or emergencies:
  
  • First Aid Kit
  • Family Contact List
  • House Equipment Maintenance Information
  • Babysitter Information
  • Emergency Evacuation Kit
  • Medial and Financial Records

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue.

You may have other options, and you may be able to salvage your credit reputation!  If you are behind on payments and worried about foreclosure, get help!  Doing nothing at all is the worse decision one can make. 

Go to www.shortsale-foreclosureguide.com for help and information. 

1. Preserve your credit standing
2. Enable you to sell your home without having to pay anything out-of-pocket.
3. Eliminate negative cash flow
4. Reduce your tax liability
5. Avoid potential foreclosure
6. Release you from your mortgage obligation
7. Avoid possible bankruptcy
8. Relieve financial / emotional stress.

 For more information about home mortgages and real estate, log on at www.WVRealEstatePros.com

Voters in Ohio County, West Virginia endorsed plans Saturday to put blackjack, poker and other table games alongside slots at their racetrack, but concerns over too little local tax revenue and too much traffic doomed a similar proposal in Jefferson County, which borders Maryland and Northern Virginia.

With all 30 precincts reporting, Jefferson County voters rejected the table games option for Charles Town Races & Slots 56 percent to 44 percent. The defeat means Pennsylvania-based Penn National Gaming Inc. must wait two years before putting the issue before voters again.

"We are obviously disappointed with the results, but we look forward to continuing to work with state, local and community officials in order to find a way to keep Charles Town Races and Slots competitive as gaming continues to expand in nearby states," said Penn National executive John Finamore.

Kevin McCoy, director of the Christian group West Virginia Family Foundation, was thrilled to hear the Penn National had conceded defeat, calling it "excellent news for the citizens."

"We've said all along that if we could get our messages out through the churches - and we've been doing that - it would carry the day. ... We really feel that we'll be able to carry the day in Hancock and Kanawha counties, as well."

The foundation will begin advertising in those two counties within the next week or so, on television and radio, he said.

The Legislature endorsed a measure this year that allowed voters in four counties to decide if their respective tracks could offer table games as a way to combat the introduction of slots in Pennsylvania. Voters in Hancock County will decide June 30 if Mountaineer Racetrack & Gaming Resort in Chester can offer the games, while Kanawha County considers the issue for Tri-State Racetrack & Gaming in Nitro on August 11.

Ohio County's approval means West Virginia is the 12th state in the nation to have a full-fledged casino with slots and table games. It becomes the second in the nation, behind Iowa, to offer live racing, slots and table games in a single location.

With all 39 precincts reporting, the referendum to allow Wheeling Island Racetrack and Gaming Center to expand its gambling offerings won 66 percent to 34 percent.

West Virginia's industrialized Northern Panhandle has been beset by economic woes including the loss of thousands of steel industry jobs in recent years, and the track's campaign focused on the chance to create new jobs and launch millions of dollars' worth of new construction.

That seemed to resonate with voters.

"Look around," said Lester Raban, gesturing to empty storefronts and nearly deserted streets in Wheeling's downtown. "We don't have anything left. If this is going to bring in 400 jobs, I'm all for it." .

Bob Marshall, Wheeling Island's general manager, said the track will hold two job fairs next week for people interested in working at the track.

"We are going to be in the business of hiring hundreds and hundreds of employees over the next several weeks," Marshall said.

Darrin Wright, pastor of the First Baptist Church in Wheeling, said opponents were "out manned and out financed."

"I hope these folks will be held accountable to the promises they made," he said.

Unlike Ohio County, Jefferson County is not reeling from the decline of the industrial economy, and voters there expressed worries Saturday about the increased possibility of crime and sprawl issues if the track expanded its operations.

Richard Accurso, a Shepherdstown resident who voted no, said gambling is "morally decadent" and the wrong way to fund local schools - a key argument Penn National had made to garner support.

"It does bring in business, as far as that's concerned, and it brings in money. But a house of prostitution brings in money. Is that the proper way to fund our schools?" Accurso said. "It's state-sponsored addiction.

Dave Didden of Shepherdstown also voted on philosophical grounds

"I really think there's enough greed in the world, enough materialism. By creating an environment that promotes greed and the money chase, we're doing our society a disservice," he said. "... This is, by and large, an effort funded by the well-off, who are just trying to make more."

But retirees Wes and Karen Croteau of Bolivar supported the measure, saying the fast-growing and largely residential county needs every dollar it can get for roads, schools and other infrastructure projects.

"If Bolivar doesn't get the money from Penn National, how are we going to get by?" Wes Croteau said. "How many bake sales are we going to have?"

Laurin LeTart, a co-chair of the campaign to pass the measure, said the defeat is painful for people who had worked hard to solicit support.

"The real losers tonight are our schools and our county, which would have gained millions in new revenues from table games, not to mention as many as 500 new jobs," said LeTart, a member of the Jefferson County Schools Education Foundation, which helps raise money for the local schools. 

WBAL Radio and The Associated Press

By BETH HENRY\ / Journal Staff Writer