Winner: First-time homebuyers

 First-time homebuyers got a rare windfall this year, when President Barack Obama extended them an $8,000 tax credit for purchasing a house.

For those who were employed and had good credit and a down payment, the tax credit provided major incentive to get into the market and pick up a bargain. (The U.S. median home price continued to slide an additional 11% in the third quarter from the same time a year ago, largely due to the huge number of foreclosures on the market.)

These buyers provided CPR for the moribund U.S. housing market, boosting sales well into the fall, when the program was extended and expanded to include some existing homeowners.

For the year, existing-home sales are expected to total 5.01 million, a gain of 2% over 2008, according to the NAR. And 47% of those purchases are being made by first-time homebuyers, compared with 41% last year.

But not everyone is sure that this government-created recovery will be sustainable once the incentives go away.

Winner: Investors

 Competing with first-time homebuyers for all of the distressed property bargains were investors.Those who had the cash - and didn't lose their shirts when the housing bubble burst - were able to snap up houses at a U.S. average last quarter of 23% below their peak price in 2006.Likewise, smart investors have been able to snap up developed lots being shed by troubled builders for a pittance.

Winner: Homeowners with equity

 Just as being employed is the new rich, having equity in your home has become a new recession-era status symbol.Those who bought their current house in the early part of the decade probably have it (except for South Florida residents).With the economy uncertain and the real-estate market picking back up, it's reassuring to have the ability to sell and use the proceeds to pay off debt; the ability to refinance; or the option to take advantage of the government's new $6,500 tax credit to spur existing homeowners into moving up.

Winner: Renters

 It was a great year to be a renter, with the largest declines in rent in more than a decade and plenty of options to choose from, as the U.S. vacancy rate climbed to a 23-year-high of 7.8%.

Winner: Debt collectors

 The foreclosure crisis has been a boon for loan servicers and collection agencies, which have all staffed up to handle the tsunami of delinquencies.However, this year, a whole new class of entrepreneurs has emerged to capitalize on America's crippling debt burden. Investment funds, loan servicers and collection firms are now buying up nonperforming loans and so-called deficiency balances (or the unsecured debt that wasn't covered by the sale of a home) for pennies on the dollar, hoping that they can be more successful in collecting the debt.

Loser: Foreclosed borrowers (and the communities they live in)

 Americans continued to lose their homes at an unprecedented pace this year, as what started as a subprime crisis began touching prime borrowers who had lost their incomes. A forecast by the housing research firm Zelman & Associates calls for a total of 3.51 million U.S. households to receive foreclosure notices in 2009 and for about 2.25 million of those to result in lost homes.

Loser: Taxpayers and employees paying for bank excesses

What can be said is that the banks survived and are making home loans. But it's taxpayers who are left holding the bag for all of the banks that won't make good. Thirty-three banks across the country that received federal bailout money didn't pay the government a dividend this summer, according to recently released federal data - a good indication that they're still short on funds.

Loser: Underwater homeowners

 With real-estate values continuing their slide this year, more Americans saw their home values drop below their loan values.According to a report by real-estate Web site Zillow, 21% of American single-family homes had mortgages in negative equity in the third quarter, down from 23% in the second quarter.

Loser: Luxury homebuilders

 

It's been a rough year for most homebuilders. For some luxury builders, it has proved deadly.The demise of many luxury builders affected more than just their company's owners and investors: It dealt a blow to subcontractors who got stiffed for their work and equipment and punished their new owners who often had to live in unfinished communities without the amenities and security promised.

Loser: Remodelers

 

Put simply, there aren't a lot of people fixing up their houses this year. And those who are are asking for - and getting - big discounts as out-of-work homebuilders have begun to compete for the dwindling remodeling work.

On Your Team.www.irenapopilevsky.com

 

 

In most states, home sellers must disclose any defect they know about that could affect how desirable - and marketable - their home is before they sign a purchase contract. But you may have fallen in love with a house, and spent hours preparing a purchase contract. You should always make your purchase contract contingent on a professional home inspection ($300 to $450). Home inspectors could miss hidden problems, however, such as a basement that floods during a downpour.
This list of red flags, recommended by Kathleen Kuhn, president of HouseMaster, a nationally franchised home-inspection company, and Bill Richardson, president of the American Society of Home Inspectors, can help you identify potentially pricey problems.

POOR WATER PRESSURE-Among tests you can do: Run water in a bathroom sink and check for weak flow. Flush the toilet while the water is running. Does the faucet flow drop off during the flush? In the bathroom located farthest from the water heater, turn on the hot water. Is there an unduly long delay before the water turns hot?

CEILING STAINS-Something's leaking. If the stain appears beneath a bathroom, odds are the shower is leaking. It may merely need recaulking or regrouting, but it could also require ripping out tile and replacing the shower pan, a much more costly process (about $1,500). Most roof leaks result from neglected flashing that seals "valleys" in the roof or around a chimney or vents (cost to repair: $200 to $500). But roof leaks may also mean it's time to replace shingles - at $100 to $350 per 100 square feet for asphalt shingles and $210 to $1,000 for wood shingles.

OVERLOADED ELECTRICAL OUTLETS- Today's electrical demands may exceed the capacity of homes built as little as a decade ago, says Kuhn. You'll spend $75 to $250 to have an electrician add a 120-volt outlet to an existing circuit. Or, if the electrical system is very outdated, it may require a new electric panel. A new, 100-amp panel will cost $1,500 to $2,500.

TROUBLESOME DOORS- Are the doors hard to close? Do they swing open by themselves or fail to open fully? If you have one bad door, it may simply have been installed incorrectly. But more than one may indicate a serious structural issue, such as a foundation that has settled or framing that is deteriorating. Fixing this problem can require structural and geotechnical engineering reports and thousands of dollars in repairs.

EXTERIOR FEATURES THAT SLOP TOWARD THE HOME- A porch, patio, driveway or grading that slopes toward the home all but guarantees water in the basement. And that may lead to structural decay, mold and insect infestation. In the basement, a musty smell may indicate previous flooding or ongoing moisture problems. Check the walls for stains, dark or light, which are tell-tale signs that water has penetrated the walls.

Solving the problem may be as simple and cheap as adding gutter extensions or regrading soil away from the home, or it could require thousands of dollars to excavate and build drains. Some homes may require exterior drains (one at the bottom of a sloped driveway, for example) as well as buried drains.

ODOR- Cigarette smoke and pet odors can be hard to get rid of. And if a home smells too clean - heavy with the scent of cleaning products (especially bleach) or plug-in deodorizers - the seller may be trying to cover up an odor, such as mold or urine. If so, you need to inquire further, says Richardson, of the American Society of Home Inspectors.

SYNTHETIC STUCCO SIDING- This must be installed precisely or else moisture will be trapped behind it, resulting in mold and decay. In the worst case, the siding will have to be replaced. For a medium-sized house (1,250 square feet of exterior surface area), replacing vinyl siding can cost $2,500 to $8,750, while wood or fiber cement siding can cost $5,600 to $10,000 or more. Especially in humid climates, you may want to pay for a special inspection. HouseMaster charges $600 and up, depending on how much of the material has been used and the size of the house.

If you find out before you close your purchase that the seller deliberately misrepresented or failed to fully disclose the home's condition, you may have the right to rescind the contract under state law. If it's a done deal, you'll probably have to sue the seller to recoup your damages. In some states you can also seek repayment of your legal costs. Consult with a lawyer who specializes in real estate fraud. If you have reason to believe that the seller's agent was negligent, you can take it up with the local Board of Realtors (www.nar.com, click on "local and state associations") and the state's licensing agency (to find yours, visit the Web site of the Association of Real Estate License Law Officials).

You're spending a lot more time in the bathroom than you'd like because your toilet never seems to completely flush on the first try.

The quick fix
A poorly flushing standard toilet can be caused by a number of different problems. Lift the tank cover, and first check the chain that runs from the flapper cap to the flush handle; if it is too long, the handle won't lift the flapper cap sufficiently. Shorten the chain length by hooking into another link of the chain. Next, look at the water level in the tank; the amount of water affects how strong the flush will be. If the tank is not filling all the way (there should be a fill line on the inside of the tank), carefully bend the bulb of the float valve up a bit and see if the tank will fill. If it does not, use a small mirror to check the toilet bowl rim holes through which the water enters the bowl. If they are blocked, clean them with a small nail and an acid-based porcelain cleaner. If none of the above does the trick, you may have a misadjusted or faulty fill valve that needs replacement.

Hope this helps.On Your Team. Irena Popilevsky www.irenapopilevsky.com

Cheap apartments of all kinds are in demand, but it's up to you to make sure that whatever you rent is safe. Here are 12 essential checks.

1. Smoke detectors- This is the most valuable protection you can have - and must have.

2. Exits-     Accidents accure, fire hazard.

3. Electrical Fires-    Electrical fires are scary. Unlike a lit stove or fireplace, to which you may be attentive, an electrical fire can start through no fault of your own and smolder behind a wall for days.

4. Windows- Do egress windows have break-away latches on the inside? Do ground-level windows or those beside fire escapes have solid locks on the outside? If you have children, do the screens and windows have childproof locks?

5. Doors and Gates- If it's a multiplex, ask if common entries are locked to the public. How are the common areas secured? Does the swimming pool have childproof gates? Has the lock to your individual unit been changed since the previous tenant moved?

6. Mold and Lead-   Mold grows in wet areas. Check for discoloration inside cupboards and closets, near pipes, around windows or any other place where moisture collects.

7. Infestation-   Rodents are common, so a brief appearance needn't be a deal breaker. But you don't want to live with them. Mice and rats spread disease and cause physical damage that can lead to other health issues.

8. Plumbing& Water- Turn on each faucet and let the water run for half a minute. Does it flow continuously? Is it clear? Does it drain well?

9. The neigborhood-  Does the property manager screen every tenant for a criminal past? Has there been criminal activity on the property or nearby? Ask the manager and local authorities. Return in the evening, or when tenants are likely to be home, and get a sense of how safe you feel.

10. Lighting-   Here's another good reason to stop by after dark: Are the parking areas and paths well-lit?

11. The owners-    Go to city hall and check property records for the address of the building where you'll be renting. (Many municipalities now have the data online.) Then make sure you are dealing with the real owner.

12. Code violations-Code violations against a property also are public record. If an apartment has been cited for a health or safety violation, there will be a paper trail at city or county headquarters. Contact the local building or housing departments and look up the address of the rental. Check the identity of the owner and whether any violations have been associated with the property.

On Your Team.
Irena Popilevsky
www.irenapopilevsky.com

 

Many of the households affected by the foreclosure crisis are actually renters, and federal law is designed to keep them from being evicted with little or no notice.
A federal law enacted this year offers renters more protection from eviction if their landlord loses the property through foreclosure."The fundamental purpose of the law  is to ensure that tenants facing  eviction from a foreclosed property have adequate time to find alternative housing.
The law establishes a minimum time period that the tenant can remain in a foreclosed property before eviction.

The law should provide some relief from immediate evictions, according to NLIHC President Sheila Crowley. "This bill brings long overdue relief for the most blameless victims of the foreclosure crisis - the families who, after paying their rent each month, are suddenly told they must move out of the homes because their landlords have been foreclosed on," Crowley said in a statement.
The new law allows tenants who have a lease to remain in their home until the end of the lease period unless a new owner purchases the home at a foreclosure sale and intends to occupy it as a personal residence. In that case, the renter can be evicted with 90 days notice even if a longer-term lease is in force.  Important exception occurs if the renter signed the lease before the owner obtained the foreclosed loan. In that case, the lease will still "survive" the foreclosure, according to Janet Portman, an attorney and author of "Every Tenant's Legal ".

Tenants who don't have a lease also are entitled to 90 days notice prior to eviction under the new law.

The law became effective May 20 and is scheduled to end Dec. 31, 2012.

On Your Team.
Irena Popilevsky
www.irenapopilevsky.com

 

Everyone wants to live "The American Dram" Homeownership. Before you become one, educate yourself on current market conditions and loan availability, as these change with time, especialy now. Learning about all the options available will help you make the best financialdecision.
There are 9 basic steps to Homeownership:
1- Determine how much you can afford
2- Know your rights
3- Shop for a loan
4- Learn about programs to help you buy
5- Look for your perfect home
6- Make an offer
7- Get a home inspection
8- Shop for Homeowner's insurance
9- Close on your home
On Your Team. www.irenapopilevsky.com

Like it or not, if you're a renter, you are involved in a business transaction. The landlord isn't dad, isn't your dorm mother, isn't even the goofy but lovable Mr. Roper next door. He's a businessman, and no one promised that business dealings would be fair, ethical or even honest.

So before you sign, give in or pay, know first and foremost when to cry bull.

To help, here's a starter plate of some typical outrageous excuses, you shouldn't swallow them. Perhaps you've already heard a few of them yourself, or even fallen for some. Read on, and don't make that mistake again.

1. Landlord's claim: ‘You can just do the dishes by hand.'
Tenant's response: "Yes, I know it's possible to do dishes by hand. I've even done it before. But the apartment that I am paying you to use came with a working dishwasher. That was the deal."

2. Landlord's claim: ‘It was like that when you moved in.'
Tenant's response: "Oh, good, so you knew the blinds were broken. Great, now come fix them."

3. Landlord's claim: ‘That will get fixed . . .'
Tenant's response: "Great! Just give me a call when it's fixed and that lease will get signed."

4. Landlord's claim: ‘What a mess. I needed all your security deposit to fix the thumb-tack holes.'
Tenant's response: "Oh my goodness. I am so sorry that while paying you $15,000 to live in your apartment last year, I actually lived in your apartment."

5. Landlord's claim: ‘Water? Noise? Talk to the neighbor.'
Tenant's response: "OK. How about if I go talk to the neighbor about what an unresponsive landlord you are?"

6. Landlord's claim: ‘It's in the lease.'
Tenant's response: "Sorry, but did your Uncle Fred draft that lease? Let's check state and local laws, too."

7. Landlord's claim: ‘I can't afford to fix it.'
Tenant's response: "Gee, sorry to hear you're having money problems, but, um, can you tell me again how that's my problem? Wait, here's an idea: Why not use some of the rent I'm paying to bring the unit up to code?"

8. Landlord's claim: ‘No one else complains.'
Tenant's response: "Wow, what a lucky landlord you are! You've found tenants who don't mind the smell of mold and the drip of leaky faucets! And what good news for me: By now you must have a hefty fix-it fund saved up!"

9. Landlord's claim: ‘I don't do repairs.'
Tenant's response: "Oh, you don't? So does that mean I don't have to ‘do' rent?"

10. Landlord's claim: ‘I lost my house and have nowhere to live. I need the apartment back.'
Tenant's response: "Well, I'm sorry that you haven't been able to pay your mortgage, but I have been able to pay my rent, which means until the lease is up, it's my home, not yours."

On Your Team. www.irenapopilevsky.com

What's My House Worth? Get a free home value estimate and view comparable homes in your area.