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  5 Steps to Owning a Home Again After Foreclosure

  Foreclosure is just a one-time event—with discipline and perseverance, you can get a mortgage and become a homeowner again. Read

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Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Arkansas Home Sales Remain Flat for Year to Date

The following is a link to the September 2010 Housing Market Report from the Arkansas Realtors® Association.

http://dl.dropbox.com/u/12295076/SeptemberHousingMarketReport_FINAL.xls

The Arkansas Realtors® Association reports that Arkansas home sales in September 2010 remained 21 percent below the state's September 2009 pace when home-buyers were ramping up in advance of the initial deadline for the tax credit last November. The average price for a single-family home in Arkansas rose almost 4% in September to $145,670 from $140,543 in September 2009. For the year, Arkansas continues to remain relatively flat in terms of number of units sold, home valuations and average prices through the end of September. The National Association of Realtors® reported earlier this week that home sales in the South were 14.9 percent lower than September 2009 and that the median price in the South was $149,500, down 2.6 percent from a year ago.

The ARA attributes the 4 percent increase in average home prices in part to Arkansas’s strong economy. The Brookings Institution's MetroMonitor, a quarterly, interactive barometer of the health of America’s 100 largest metropolitan economies, recently ranked the Little Rock region the nation's fourth strongest. The Brookings Institution ranked the 100 largest metros by averaging the ranks for four key indicators: employment change, unemployment change, gross metropolitan product, and home price change.

The full MetroMonitor report can be found at http://www.brookings.edu/~/media/Files/Programs/Metro/metro_monitor/2010_09_metro_monitor/0915_metro_monitor.pdf

In commenting on the national home sales numbers for September, NAR Chief Economist Lawrence Yun said the housing market is in the early stages of a recovery stating that the housing market's recovery "will be choppy at times" but that the overall direction of the housing market "should be a gradual rising trend in home slaes with buyers responding to historically low mortgage interest rates and very favorable affordablity conditions."

"Mortgage rates are at record lows making it a great time to buy a new home," said Andy Meyers of Meyers Realty in Hot Springs and President-elect of the Arkansas Realtors® Association. "A 30-year, conventional, fixed-rate mortgage fell to 4.35 percent in September from 4.43 percent in August. For people who are ready to buy, today's housing affordability is really helping them invest in their future through homeownership. In Arkansas, as in the rest of the country, it truly is a buyer's market. Prices are low and there are plenty of fantastic homes from which to choose."

The following are links to graphics developed by the Arkansas Geographic Information Office of September's data:

http://dl.dropbox.com/u/12295076/Units%20Sold%202010%20YTD.bmp

http://dl.dropbox.com/u/12295076/Value%20of%20Units%20Sold%202010%20YTD.bmp

http://dl.dropbox.com/u/12295076/Avg%20Price%20Units%20Sold%20Sept.bmp

As always, please keep in mind that this is an approximation of the Arkansas housing market based on the information provided to the Association at the time of the report's distribution. Data is provided by Realtors® reporting through participating multiple listing services in Arkansas and while deemed reliable is not guaranteed.

Arkansas Residents Rank Last On Credit Scores

This just in from Attorney General Dustin McDaniel's office: According to at least one nationwide study, Arkansas residents rank last when it comes to credit scores. The study reveals that the national credit score average is 666, while the Arkansas average is only 636. Attorney General Dustin McDaniel today released this consumer alert offering advice for Arkansas consumers on how to improve low credit scores

Credit scoring is a system used by the major credit bureaus to provide a summary of a consumer’s credit history. Many creditors make the decision to extend credit and set credit terms based on an applicant’s credit score. While different credit bureaus have different credit scoring systems, all are influenced by a consumer’s bill-paying history, the number and type of accounts a consumer has, late payments, collection actions, outstanding debt, debt-to-income ratio, and the age of existing accounts. Generally, consumers with higher credit scores are more likely to receive higher credit allowances and better credit terms.

A low credit score may present several disadvantages for consumers, including difficulty obtaining a loan or higher interest rates on borrowed money. However, a low credit score can be improved. Attorney General McDaniel offers the following tips:

Review your credit report. Get a copy of your credit report so you are aware of what creditors will see. A free copy of your credit report is available at www.annualcreditreport.com or you can call toll free: 1-877-322-822. Errors or inaccurate information can impact your ability to get credit and affect your finance rate.

Clean up your credit report. If a credit report contains incorrect or obsolete information, consumers have the right to have it removed. Contact the credit reporting company in writing, specifically outlining inaccurate information. Maintain copies of all correspondences for your personal records.

Resolve delinquent accounts and keep up with payments. Payment history can constitutes 35 percent of an overall credit score; outstanding debts can comprise 30 percent. Focus on keeping your payments current and paying off debts in a timely fashion.

Stop using your card. Keeping your credit cards “maxed out” will negatively impact an already damaged credit score.

Keep older accounts. Credit history length can constitute 15 percent of a credit score. Do not completely close out older but seldom-used credit card accounts, as keeping older cards without incurring additional charges may improve your rating.

Lower balances. Make an effort to keep credit balances as low as possible. Your credit score takes into account the amount of credit available compared with how much credit actually utilized. The less you're using, the better for your score

Get professional help. If you are overwhelmed by your credit situation, seek professional assistance.

For more information, contact the Consumer Protection Division of the Attorney General’s Office at Suite 200, 323 Center Street, Little Rock, AR 72201. The office can be reached by calling 682-2341 (Little Rock) or 1-800-482-8982.

House to House: Raise Your Awareness about Lead Exposure

The National Association of the Remodeling Industry (NARI) is helping to raise awareness of the dangers of lead exposure by observing National Lead Poisoning Prevention Week (NLPPW) on October 24-30, 2010. In light of the new law mandated by the U.S. Environmental Protection Agency (EPA), called Lead Renovation, Repair, Painting Rule (LRRP), this year’s efforts are even more worthwhile to encourage consumers to hire lead certified remodelers when remodeling a home built prior to 1978.

According to the Centers for Disease Control and Prevention (CDC), childhood lead poisoning is considered the most preventable environmental disease among young children, yet an estimated 250,000 U.S. children have elevated blood-lead levels.

Since April 22, 2010, the EPA placed the LRRP rule into effect, and by the end of this year, contractors must go through an 8-hour training to certify at least one person in the firm to supervise the renovation of target housing (pre-1978) homes, and the contracting firm must be a Certified Firm with the EPA if they intend to work in pre-1978 homes.

In honor of National Lead Poisoning Prevention Week (October 24-30, 2010), NARI is providing this checklist to minimize lead exposure for renovations and remodeling by homeowners living in pre-1978 homes:

• Verify that your contractor’s firm is registered with the EPA unless your state has taken over their own lead safety program, in which case the certification process may be slightly different. To find out if your state is working under its own lead program, visit http://www.epa.gov/lead/pubs/renovation.htm#authorized.

• Verify at least one person in your contractor’s firm is a Certified Renovator and has documented the training of the work crew, and is supervising the work being completed in the home.

• Know that these certifications must be accessible at the work site at all times.

• The contractor’s firm must post signs before renovation begins, clearly defining the work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area.

• Make sure you understand and sign the EPA’s “Renovate Right” brochure.

• Remove all belongings from the immediate area of the renovation.

• Notice if your contractor is using plastic sheeting that is taped 6 feet beyond the perimeter of surfaces undergoing renovation; reusable cloth coverings are not acceptable.

• Renovators should be cleaning up and mopping daily to minimize dust contamination.

• Contractors must use HEPA vacuums and/or wet mopping to remove lead particles.

• All contaminated materials should be placed in heavy duty plastic bags before your contractor disposes of them.

Even if renovation isn’t in your home’s immediate future there are a few simple steps like getting your home tested for lead, keeping your home clean and feeding your family a well-balanced diet that will go a long way in preventing lead poisoning. You can begin right now, by taking these steps:

• Keep your home clean and dust-free.

• Wipe up any paint chips or visible dust with a wet sponge or rag. Clean dust around areas where there is friction and dust can be generated, such as doors, windows, and drawers.

• Wash children's hands, bottles, pacifiers and toys often.

• Teach children to wipe and remove their shoes and wash hands after playing outdoors.

• Ensure that your family members eat well-balanced meals. Children with healthy diets absorb less lead.

To learn more about testing your child’s lead levels, testing your home for lead for lead or preventing health effects related to lead exposure visit http://www.cdc.gov/nceh/lead/nlppw.htm.

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House to House is written by Amy Glover Bryant and distributed weekly by the Arkansas Realtors® Association (http://www.arkansasrealtors.com/)

Americans Still Believe Buying a Home Is a Good Financial Decision

The National Association of Realtor's eighth annual Housing Opportunity Pulse Survey reveals that nearly eight out of 10 respondents believe buying a home is a good financial decision, despite ongoing challenges with the economy and housing market. The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program.

Click here to read more.

House to House: Does Your Home Pass the Sniff Test?

When it comes to selling your house, it is the little things that can make a big difference in whether you obtain the price you are wanting for your property and in how long it takes to sell it.

With this in mind, I emailed a handful of my favorite Arkansas Realtors® and asked for their advice on how to prepare a home for sale. Much to my surprise they all focused on the importance smell has on a potential buyer’s impression of your property.

According to the Scent Marketing Institute, the sense of smell is the strongest and most primal of all our senses. It protects us from drinking milk that’s turned sour and alerts us to the presence of natural gas. It vividly reminds us of moments – good or bad – we first experienced decades ago. It is the first of our senses to evolve in the evolutionary chain and the sense with the strongest, most accurate level of recall.

In marketing, scent can trigger a memory or desire that influences a purchase decision. Alternatively, scent can remind us of pleasant associations, whether that is "home", the beach or a meadow. These associations help to create an environment in which we feel comfortable, "at home” so it only makes sense that as a seller you want to make sure visitors to your home are breathing in the right scents.

“A home’s smell has a tremendous impact on what a buyer thinks of your home,” said Paulette Richie, Executive Broker, Coldwell Banker RPM. “Your home needs to smell clean, even new if possible.”

To achieve a new-like smell, Richie recommends applying a fresh coat of polyurethane to natural wood surfaces or latex paint to walls. Kelli Small, an Associate Broker with McDowell Properties in Conway, recommends cleaning out all the clutter from closets and losing the moth balls.

Want your buyer to feel safe, secure and nostalgic? According to the Scent Marketing Institute you should introduce a talcum powder scent to your environment. Want them to relax? Choose lavender, vanilla or chamomile. Want to get your buyer to perceive a room as bigger? The smell of apples and cucumbers.

To eliminate the possibility of foul odors taking over, Laurie Rushing, Executive Broker with Trademark Real Estate in Hot Springs, recommends bathing your pets, changing the litter box frequently, shampooing carpets and emptying trash cans, recycling bins and ash trays. “Introduce pleasing smells to your home by placing fresh flowers throughout the house and refraining from cooking fish or other strong-smelling foods.”

So what is the smell that supposedly will get them in the mood for buying a home? Fresh baked goods.

For more information on scent marketing readers can visit the scent marketing web site at http://www.scentmarketing.org/.

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House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors® Association.

Navigating the Foreclosure Upheaval

Given the daily headlines on the foreclosure freeze it’s easy to lose sight of that fact that most lenders are not putting a halt to their foreclosure processing. Earlier this week Robert Freedman, senior editor of REALTOR magazine, sat down with his colleagues Jeff Lischer, NAR’s managing director of regulatory policy, and Paul Bishop, NAR’s vice president of research, to get their take on what’s happening with the foreclosure freeze.

Here's a link to their conversation.

Arkansas AG Joins Multistate Review of Foreclosures

Arkansas Attorney General
Dustin McDaniel

Attorney General Dustin McDaniel today announced that he has joined a multistate review into possibly improper practices within the mortgage service industry.

The group of attorneys general in 49 states, and state banking and mortgage regulators in 30 states, will explore whether individual mortgage servicers have improperly submitted documents in support of foreclosures. Specifically, the group will look into whether companies misrepresented on affidavits and other documents that they reviewed and verified supporting foreclosure documentation, whether companies signed affidavits outside the presence of a notary public, and whether the company was actually the appropriate entity to pursue a foreclosure, along with other possible issues regarding servicing irregularities or abuses.

"We realize that some foreclosures are necessary, but given the importance of the property right at risk, the process leading to a foreclosure is a serious one and should be above reproach," McDaniel said. "Our office has joined this investigation in order to make sure that foreclosing entities have fully complied with our laws."

Some of the concerns to be addressed -- such as the practice of "robo-signing" affidavits -- may not be applicable to some Arkansas foreclosures, which are pursued outside the court system through the state's statutory foreclosure process.

However, McDaniel said participation in the review may help identify other concerns about the process.

The multistate group will contact a comprehensive list of individual mortgage servicers. The group's initial objectives include:

•Put an immediate stop to improper mortgage foreclosure practices.

•Review past and present practices by mortgage servicers subject to the inquiry.

•Evaluate potential remedies for past practices and to deter future improper practices.

•Establish a mechanism for more effective independent monitoring of future mortgage foreclosure practices.

Fowler says real estate auctions solid alternative for some sellers

Nick Fowler,
Fowler Auctioneers

Nick Fowler of Fowler Auctioneers, with offices in Hot Springs and Glenwood, has seen a surge of real estate auctions over the past few years. Fowler says some sellers might consider an auction as an alternative to a traditional, negotiated transaction. Why has Fowler seen success with his company?

Find out in this article from this week's Daily Record.

Arkansas Realtors® Working to Restore Communities

Arkansas Realtors® play an important leadership role in building our communities, sharing their time and talents to help those in need and improve the communities in which they live and work. One such program created by the Arkansas Realtors® community, Project Realtor Restore, is a unique program designed to bring together Realtors®, public works entities in their communities, police, churches, school organizations, civic groups and private volunteers to improve the quality of life with little or no costs.

The program design is simple and effective. Most communities, both large and small, have areas in need of some improvement. Sometimes it’s as simple as cleaning a city park area, but can be as labor-intensive as cleaning several city blocks in areas that have become blighted. With Project Realtor® Restore the ground-work is laid by a Realtor® coordinator. The Realtor® and other community volunteers arrive for clean-up day, do their job, are fed lunch and sent home. It’s simple, it’s safe, it’s fulfilling and provides a much-needed community service.

Not only are Realtors® helping to identify ‘problem’ areas in their communities, they are also working side-by-side with others in their communities to solve problems. "It is wonderful to see how a community can get behind the clean up,” said Paragould Realtor Sandra Kelley. “Sometimes it's just that little spark that can turn a neighborhood around.”

The program began in 1999 when Jonesboro City Councilwoman Judy Furr and Sgt. Larry Rogers of the Jonesboro Police Department started looking for ways to put a program together that would clean up neighborhoods, instill pride in residents and reduce crime rates. In 2008 Furr presented a statewide version of her local program to the Arkansas Realtors® Association and the program was adopted by local Realtor® boards throughout the state.

“We have had a tremendous response to the program throughout the state of Arkansas,” said Kelley. “Over the years the program has been highly successful and has seen thousands of tons of trash hauled away and neighborhoods restored – all done with volunteers, city services and the will to make the community a better place to live. Volunteers look forward to the Saturday morning project and some have participated for the full eight years.”

For more information on Project Realtor® Restore and how Realtors® can collaborate with your community to help ensure safe, clean living environments, contact your local Board of Realtors® or the Arkansas Realtors® Association at www.ArkansasRealtors.com.

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House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors® Association.

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Believing in Hot Springs Brings Two Companies Together

          “We Believe in Hot Springs!” was the theme of today’s announcement by Rector Phillips Morse, Inc. (RPM), that it has completed a merger with the Hot Springs commercial real estate operations of PDC Companies, Inc. The sentiment clearly expressed a commitment to the growth and progress of the area through commercial real estate development and sales.
            The merger of the two firms has formed Coldwell Banker Commercial RPM, which brings to Hot Springs and the surrounding Diamond Lakes Region a collaborative network of independently owned and operated affiliates focusing on commercial real estate. RPM and PDC now become part of the Coldwell Banker Commercial organization, comprising over 220 companies and more than 3,400 professionals throughout the U.S., as well as internationally. In fact, Coldwell Banker Commercial has the largest geographic footprint in today’s commercial real estate marketplace.
            Speaking at a luncheon organized to announce the merger and bring the two staffs together, RPM’s president, Pete Hornibrook, said, “Our company was formed in 1955, and we have participated in the growth of Hot Springs since the early 1960s. Hot Springs gave RPM the opportunity to develop the first-ever condominium project in Arkansas. The year was 1962, and the development was Baywood Colony on Lake Hamilton. Since that time, we have continued to grow our residential sales here, and now will participate even more with the region’s largest real estate company dedicated to commercial development.”
            RPM’s residential sales office in Hot Springs now numbers 19 agents. With six commercial agents, the residential and commercial sales offices will have a combined sales and brokerage staff of 25, to be located in the former PDC offices at

401 Section Line Road

.
            “Residential sales has been our focus for over 50 years,” said Robin Miller, president of Coldwell Banker RPM, the residential arm of the company. “We have grown that presence in Hot Springs, and now complement it with commercial brokerage, rounding out our full-service approach to all types of real estate transactions.” RPM has seven offices in central Arkansas, including mid-town Little Rock, west Little Rock, North Little Rock, Maumelle, Cabot, Saline County, and Hot Springs.
            PDC Companies, operating as Phillips Development Corporation, entered the Hot Springs market in 2001 with the purchase of Selig Commercial Real Estate. The company changed its name to PDC in 2008. In addition to commercial real estate, PDC operates a multi-family division, which owns and operates 63 apartment properties in Arkansas, Kentucky and Missouri.
            “We are thrilled to now be associated with RPM and Coldwell Banker Commercial,” said Elizabeth Small, president and CEO of PDC Companies. “The combined strength of the new Coldwell Banker Commercial RPM will bring an even greater partnership to the business community of Hot Springs. We believe in Hot Springs!”
            Hornibrook confirmed that continuing the effective stewardship of current clients’ assets is the number one goal of the new company. Listing commercial properties for sale, locating investment properties for clients, and developing new commercial projects will bring to Hot Springs more opportunities to be viewed as a dynamic commercial center in southwest Arkansas. The merger of the two companies is scheduled to close on October 6, 2010.

House to House: Fire Prevention Week Tips to Prevent Your Pet from Starting a Fire

Fire Prevention Week, October 3 to 9, was established to commemorate the Great Chicago Fire of 1871 that killed more than 250 people, left 100,000 homeless, destroyed more than 17,400 structures and burned more than 2,000 acres.

According to popular legend, the fire broke out after a cow - belonging to Mrs. Catherine O'Leary - kicked over a lamp, setting first the barn, then the whole city on fire. For more than 130 years, people have been blaming this huge fire on the cow and, while Chicago historian Robert Cromie has helped to debunk this version of events, there is little debate that the fire started near the barn where Mrs. O'Leary kept her five milking cows.

With Mrs. O’Leary and her poor cow’s reputations in mind and on the eve of Fire Prevention Week, I felt it important to warn you that you may be living with an arsonist.  According to data distributed by the National Fire Protection Association earlier this year, nearly 1,000 house fires each year are accidentally started by the homeowners’ pets. 

A recent article on HouseLogic.com, “Cute But Deadly: The Top 5 Most Notorious Pet Arsonists” includes a list of “the top 5 pyro pets and the crimes that made them famous.”  Ha!  The list includes:

• Lucy a dog that nearly burned down her owner’s Jacksonville, Oklahoma home when she tried to eat a cake sitting on the stove.  Lucy’s paws turned on the gas burner, setting the kitchen on fire.
• Stewie, a Lake Worth, Florida cat, purportedly waited until the owners were asleep and then knocked over a candle that started a house fire, leaving them homeless.
• Tracy Morgan of Saturday Night Live and 30 Rock fame had his apartment catch fire due to a faulty aquarium light.  Tongue in cheek, the HouseLogic article stated, “Although the fish aren’t officially to blame for this one, they still watched it happen with cold, emotionless little fish eyes.”

On a serious note, I do not truly believe that your sweet Fluffy or my sweet Bear are planning to burn down our homes, but accidents can happen. Therefore, as responsible pet and home owners let us take precautions to prevent our four-legged friends from starting a fire that could destroy not only our homes but possible take the lives of our beloved pets in the process.

The American Kennel Club offers the following tips for preventing your pet from starting a fire:

• Extinguish open flames or invest in flameless candles.  Pets are generally curious and will investigate candles or your fireplace.  Make sure your pet is not left unattended around an open flame and make sure you extinguish candles and the fire in your fireplace before leaving home.  Cats especially are bad about starting fires when their tails turn over lit candles.
• Remove stove knobs.  Be sure to remove stove knobs or protect them with covers before leaving the house.  According to the National Fire Protection Association, a stove or cook top is the number one piece of equipment involved in your pet starting a fire.
• Beware glass water bowls.  This one came as a surprise to me.  Apparently leaving a glass water bowl for your pet outside on a wooden deck is dangerous.  The sun’s rays when filtered through the glass and water can actually heat up and ignite the wooden deck below it. 

For more information on Fire Prevention week, visit the National Fire Prevention Association’s website at www.nfpa.org.

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House to House is distributed weekly by the Arkansas Realtors® Association.