So what's cooking in the kitchen this year? The National Kitchen & Bath Association surveyed designers to reveal the top design trends for 2010.

Among the trends gaining popularity this year: Hide your appliances in kitchen drawers, whether dishwashers-in-a-drawer or undercounter refrigeration (drawers being used as refrigerators). More home owners are opting to tuck their appliances away so they don't interfere with the design.

Also part of the appeal to dishwashers-in-a-drawer is their convenience with the capability of washing small loads of dishes in each drawer, which saves water and electricity.
Here are some of the other top kitchen trends for 2010:

Color: Shades of white and off-whites are the most common kitchen colors, followed by brown, beige, and bone hues.

Cabinetry: The most popular wood for kitchen cabinetry remains cherry, followed by maple. In the decline: Painted cabinetry and light natural finishes and distressed finishes.

Design style: Traditional is the most popular kitchen design with contemporary following closely behind.

Flooring: Ceramic and porcelain tile and natural stone remain the most popular kitchen flooring. Hardwood, however, will dominate kitchens this year more than ever.

Countertops: Granite is the most popular option, but quartz is inching up to it in popularity.

4 Reasons to Sell Now

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

1. Sell low and buy low. Because all property values are down, the sellers' loss on a property is really only a paper loss because the next property they buy also will be a bargain. If they buy smartly, when prices come back up in a few years, they'll be in better shape.

2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for "down-payment assistance programs" and the name of your region.

3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

4. Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business

Greg Olson/REMAX Suburban/Cell (847) 977-7024

Tips for Finding the Perfect Neighborhood

Your neighborhood has a big impact on your lifestyle. Follow these steps to find the perfect community to call home.

•·          Is it close to your favorite spots? Make a list of the activities - movies, health club, church, etc. - you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you're considering to engage in your most common activities.

•·          Check out the school district. This is especially important if you have children, but it also can affect resale value. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, visit schools in the neighborhoods you're considering. Also, check out www.schoolmatters.com.

•·          Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type - such as burglaries or armed robberies - and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

•·          Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don't necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

•·          See if you'll make money. Ask a local REALTOR® or call the local REALTOR® association to get information about price appreciation in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good of an investment your home will be. A REALTOR® or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood - like a new school or highway - that might affect value.

•·          Make personal observations. Once you've narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? How does it feel? Pick a warm day if you can and chat with people working or playing outside.

Good news homebuyers: You can file for your $8,000 first-time buyer tax credit again.

Bad news: You  can't e-file your taxes if you want the cash. And there are long delays.

  Last Thursday, CNN revealed that buyers who purchased their properties after Nov. 6 were unable to claim the refund because the Internal Revenue Service had yet to release a new form and instructions. But on Friday, the IRS finally posted the new form 5405.

First-time buyers used to able to immediately file for the tax credit after Congress approved it last February as part of the stimulus program. All they had to do was file an amendment to their 2008 tax returns (the ones they filed last April) and claim the promised refund of 10% of the purchase price, up to $8,000.

They were able to e-file, and they received their refunds promptly. But on Nov. 6 the rules changed. That's when Congress extended -- and expanded -- the tax credit, which was originally scheduled to expire on Nov. 30.

And these new buyers can no longer file electronically. They have to mail in paper forms, including the new 5405, whether they are amending their 2008 taxes or claiming it on the 2009 taxes that are being filed this spring.

Due to the abuse of the credit, IRS now requires that applicants now file documentation with their taxes -- including proof of residency, a signed mortgage statement and drivers license -- which the e-file system is not equipped to handle, which dramatically slowed down the refund process. Taxpayers are looking at another three months before they get their returns as a result.

Greg Olson, REMAX Suburban

You  Have Options!!

Navigating Short Sales: What to Do When the Sale Price Leaves You Short

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

•·        Refinancing your loan at a lower interest rate

•·        Providing a different payment plan to help you get caught up

•·        Providing a forbearance period if your situation is temporary

When a loan modification still isn't enough to relieve your financial problems, a short sale could be your best option if

•·        Your property is worth less than the total mortgage you owe on it.

•·        You have a financial hardship, such as a job loss or major medical bills.

•·        You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.

A qualified real estate professional can:

•·        Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

•·        Help you set an appropriate listing price for your home, market the home, and get it sold.

•·        Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

•·        Ease the process of working with your lender or lenders.

•·        Negotiate the contract with the buyers.

•·        Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can't sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale "package" that accompanies any offer typically must include

•·        A hardship letter detailing your financial situation and why you need the short sale

•·        A copy of the purchase contract and listing agreement

•·        Proof of your income and assets

•·        Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender's review of the short-sale package can take several weeks to months. Some experts say:

•·        If you have only one mortgage, the review can take about two months.

•·        With a first and second mortgage with the same lender, the review can take about three months.

•·        With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender's loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

•·        You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can't pay back the balance, talk with your real estate attorney about your options.

•·        Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

•·        Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

Greg Olson/REMAX Suburban

Cell (847) 977-7024

Tips for Finding the Perfect Neighborhood

Your neighborhood has a big impact on your lifestyle. Follow these steps to find the perfect community to call home.

•·        Is it close to your favorite spots? Make a list of the activities - movies, health club, church, etc. - you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you're considering to engage in your most common activities.

•·        Check out the school district. This is especially important if you have children, but it also can affect resale value. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, visit schools in the neighborhoods you're considering. Also, check out www.schoolmatters.com.

•·        Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type - such as burglaries or armed robberies - and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

•·        Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don't necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

•·        See if you'll make money. Ask a local REALTOR® or call the local REALTOR® association to get information about price appreciation in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good of an investment your home will be. A REALTOR® or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood - like a new school or highway - that might affect value.

•·        Make personal observations. Once you've narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? How does it feel? Pick a warm day if you can and chat with people working or playing outside.

Greg Olson, REMAX Suburban

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe.  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it's a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it's desirable to have more than one type of credit - installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com.

Greg Olson, REMAX Suburban

Navigating Short Sales: What to Do When the Sale Price Leaves You Short

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

·          Refinancing your loan at a lower interest rate

·          Providing a different payment plan to help you get caught up

·          Providing a forbearance period if your situation is temporary

When a loan modification still isn't enough to relieve your financial problems, a short sale could be your best option if

·          Your property is worth less than the total mortgage you owe on it.

·          You have a financial hardship, such as a job loss or major medical bills.

·          You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.

A qualified real estate professional can:

·          Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

·          Help you set an appropriate listing price for your home, market the home, and get it sold.

·          Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

·          Ease the process of working with your lender or lenders.

·          Negotiate the contract with the buyers.

·          Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can't sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale "package" that accompanies any offer typically must include

·          A hardship letter detailing your financial situation and why you need the short sale

·          A copy of the purchase contract and listing agreement

·          Proof of your income and assets

·          Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender's review of the short-sale package can take several weeks to months. Some experts say:

·          If you have only one mortgage, the review can take about two months.

·          With a first and second mortgage with the same lender, the review can take about three months.

·          With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender's loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

·          You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can't pay back the balance, talk with your real estate attorney about your options.

·          Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

·          Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

The Better Business Bureau (BBB) consistently ranks contractor fraud as its number one complaint. Don't be a victim. If you (or someone you know) is thinking about hiring a contractor, please read or share these tips straight from the BBB before signing anything.
Obtain bids (from at least three licensed contractors) based on building specifications, quality of materials, labor and time to complete the project.

Ask for customer references, and be sure to contact them. If possible, check out previous work.

Contact the Better Business Bureau (BBB) for a report on the contractor and review site thoroughly for further advice.

Ask to see the contractor's pocket license and another form of ID.

Call the Contractors State License Board to see if the license is valid and if a bond is in place.

It's very important that your contractor have property damage and personal liability insurance coverage, and, if the contractor has any employees, workers' compensation. Insist that the insurance broker send you certificates of insurance.
Remember, a contractor may not ask for more than ten percent of the total contract price, or $1,000 (or two percent or $200 in the case of swimming pools), whichever is less, as a down payment. (Insist upon a lien release from all subcontractors and suppliers before you pay for any work).

Anything you sign may constitute a contract. Before you sign a final contract, be sure it includes the following:
the name, street address (not just a post office box), and local telephone number of the contractor;

if you must obtain a loan to pay for the project, that the agreement is valid only if you obtain financing at a given rate;

a written description of all work to be done, including a detailed description of the kind and quality of materials to be used;

a bid based on the job, not by the unit;

a price breakdown for both labor and materials;

starting and completion dates;

the schedule for releasing payments to the contractor;

a written statement reiterating any oral promises made by the contractor or sales representative, including any warranties on materials or labor;that the contractor will obtain the necessary building permits.
Don't sign a completion certificate until you're satisfied that the job has been completed according to the contract and inspection has been completed by local building authorities.

Lose Your Job, Keep Your Home

If you're faced with a layoff, there are ways to escape foreclosure and stay in your home.

Few words sting like the ones that inform you that you're being laid off - especially today, with jobs so hard to come by. If you're a homeowner, the blow of a job loss can be even worse.

In households with more than one wage earner, halving the monthly income can severely stretch a budget. And in households where there's one breadwinner, having zero income can be devastating. A rainy-day fund helps, but it's important to craft a plan early about how you're going to get through the rough patch.

More people are facing this nightmare today: While the volume of subprime mortgages headed to foreclosure is falling, the volume of prime, fixed-rate mortgages defaulting is on the rise, according to statistics from the Mortgage Bankers Association.

"If you don't have the prescribed three to six months income in the bank (now eight to 12 months due to how long it takes to replace that job), you're really in deep trouble with some troubling decisions to make," said Gail Cunningham, vice president of public relations for the National Foundation for Credit Counseling, in an e-mail. The NFCC is a national, nonprofit credit-counseling network.

"We always advise people to pay their living expenses in full (this includes the house payment), followed by any secured debt (usually the car payment), and then the creditors. This will keep a roof over your head, food on the table, utilities paid, medicine in the cabinet, the kids at day care, etc. Once the money runs out, no one beneath that line gets paid. However, this assumes that there's either some savings to fall back on or another income source," she said.

Between programs offered by the government and loan servicers, additional options are available for today's homeowners before they slip into foreclosure - if they speak up and ask for help. Or maybe the best answer is to start over again by cutting your losses and selling your home or pursuing a short sale if you owe more on your mortgage than your home is worth, those in the industry say.

Whichever road you choose, it's important to contact the lender or servicer as soon as you know you could have a problem on your hands - and before you get behind on your payments. The MBA has a listing of contact information for lenders and servicers, including links to Web sites that give consumers a glimpse of some of the help that is offered.

"A lot of customers call us very late in the process, and it becomes extremely difficult for us to explain everything in one shot and to resolve everything to their satisfaction," said Sanjiv Das, CEO of CitiMortgage.

Early communication is also stressed at Chase, said Christine Holevas, a bank spokeswoman. Remember also to be open and honest about your financial situation. You may think you're bettering your chances for help by fudging on income information, for example, but it will in fact slow the process down; when income is verified and is found to be false, you'll have to start over again, she said.

For help, there are counselors who will sit down with you and sort through options and paperwork. Chase, for example, has counselors at 27 homeownership centers throughout the country to assist its borrowers, Holevas said. The U.S. Department of Housing and Urban Development has a list of approved housing counselors, or homeowners can connect with a counselor through the NFCC site.

Government modifications
The solution that has gotten some of the most press this year has been the government's Home Affordable Modification Program, which lowers monthly payments for borrowers based on debt-to-income ratios. Borrowers have to successfully complete a three-month trial period before the modification is finalized.

Some homeowners are still confused about who is eligible, said Greg Hebner, president of MOS Group, a loss-mitigation service provider that works with lenders and servicers.

For one, the program "requires a hardship, but does not require you to be delinquent," Hebner said. "That is an important consumer misconception - if I'm still making my payments, there is no help for me."

But what the government does require is some amount of monthly income in the household, said Drew Kessler, director of sales for Rand Mortgage, in New City, N.Y. In a dual-income household, for example, if one person loses his or her job, a modification is a possibility. With one breadwinner, it probably isn't.

"There has to be some viable source of income," Kessler said. "If they lost wages, or found a new job, the banks will work with them."

Kessler's advice: It might be best to accept a job that pays less instead of holding out for one that is best-suited to your salary history, in order to qualify for the adjustment.

"A borrower also has to be in danger of imminent default to be eligible," Holevas said.

"They're going to take a look at what your liquid assets are," she said. "If a borrower has more than seven months worth of payments in savings, he or she is not yet in imminent danger of falling behind and likely won't be able to modify," she said.

If you do qualify, it's important to submit complete and accurate information in order for the application to move through the process without hiccups, Holevas added. If you don't, "the back and forth tends to really slow things down," she said.

"Remember, if you don't qualify for the government's program, many mortgage servicers have their own modification plans," Holevas said. "All options can be examined if you start early enough."

"Contact your lender when you think you're going to have a problem," she said, "even if you're a couple of months out from not being able to make your payment."

Other avenues
A variety of other options are available, depending on the company that services your loan and other characteristics of your mortgage.

A few examples:
- If your mortgage has been bought by Fannie Mae, there's a HomeSaver Forbearance program for those in default or if default is imminent. With HomeSaver, a borrower needs to have a willingness and ability to make reduced monthly payments of at least half of the regular payment - including taxes and insurance and any other escrow items. That period of forbearance lasts six months, during which time the servicer works with the borrower on a more permanent solution.
- If your mortgage is serviced by CitiMortgage, there is a program that allows borrowers to pay a flat $500 mortgage payment for three months after the loss of a job, said Das of CitiMortgage.
- Genworth, a private mortgage insurance firm, offers job-loss protection on some of the loans it insures, paying up to $2,000 directly to the servicer for up to six months in the event the homeowner loses his or her job. The benefit period stays in place for up to three years after the loan closes, if the PMI remains in place on the mortgage. PMI is typically required when a borrower's down payment is less than 20%. It can be canceled once there is at least 20% of equity in the home.

Cutting bait
"For some homeowners, it might make more sense to sell their home and start fresh.
Home sales are up recently in many markets, and if you're living in a home that would be attractive to a first-time buyer eligible for the government's first-time buyer tax credit, you might be able to take advantage and make a sale before the credit expires at the end of November," Kessler said.

"Maybe sell now and get yourself in a smaller property, a less costly property," he said.

For homeowners who owe more on their mortgage than their home is worth, short sales can be a viable option. In a short sale, the home is sold for less than the mortgage amount - with approval from the lender - and the difference is forgiven.

"Short sales usually take longer than a traditional sale, so borrowers might want to seek out a real-estate agent who is a certified default property expert in order to expedite the process," said Rich Rollins, president of National Quick Sale, a firm that works with the mortgage industry to get short-sale offers processed. His firm also helps match up investors with distressed properties, working out deals that allow the homeowners to give up ownership but rent their home, with the potential for them to "rent to re-own," he said.

He warns, however, to be careful of unsolicited offers of help from people claiming they can save your home, he said.

"Be very wary of people who approach you for a profit or fee upfront," Rollins said.

"You've got to be diligent because there are people out there trying to steal your money," he said. "You're already in a precarious position. Don't let people take advantage and take the money that you do have."