Those are words that perk your ears up! And if you have ever had an FHA-insured mortgage then you should pay attention. While the refund process should be automatic, sometimes a refund gets missed or the payee can’t be located. First check the HUD website to see if you are owed a refund. You will need to enter your name or your FHA case number.

To be eligible for an insurance premium refund, you must meet these requirements:

• acquired your loan after September 1, 1983
• paid an up-front mortgage insurance premium at closing and
• did not default on your mortgage payments

To be eligible for a distributive share from the Mutual Mortgage Insurance Fund you must meet the following:

• originated your loan before September 1, 1983
• paid on your loan for more than seven years and
• had your FHA insurance terminated before November 5, 1990.

The HUD site encourages people who need help with their refund to contact them directly and not to hire someone to assist in collecting the refund. Often the collectors are scam artists. The direct number to the HUD support center is 1-800-697-6967.

For more details, directions on requesting your refund, and a list of the exceptions, read the FHA Homeowners Fact Sheet.

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To begin your search homes in Edina, visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

This shouldn’t surprise any locals, but Edina High School ranks as one of the top 110 high schools in the nation! Newsweek magazine released a list last week of the top 1500 high schools and Edina ranks at 108! Among the Minnesota schools on the list, Edina High School ranks at number 2.

According to Newsweek:

Public schools are ranked according to a ratio devised by Jay Mathews: the number of Advanced Placement, Intl. Baccalaureate and/or Cambridge tests taken by all students at a scEhool in 2008 divided by the number of graduating seniors. All of the schools on the list have an index of at least 1.000; they are in the top 6 percent of public schools measured this way.

The Twin Cities area has 11 schools appearing on the list and Minnesota has 27 overall. This simply confirms what we have known all along. Minnesotans are a smart bunch!

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To begin your search homes in Edina, visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

The old Shakespeare-based adage “all the world’s a stage” is nowhere so true as in the world of modern real estate.  Staging, the art of preparing a home for sale by de-cluttering, depersonalizing, cleaning, repainting, rearranging, landscaping, and cosmetically improving a home to make it more saleable, has become the norm.  The theory is that when a home is properly staged, it will appeal to the largest number of buyers, sell more quickly, and sell for more.  While “staging” has always been a normal part of getting a home ready to sell, since the 1990’s, staging has become an industry of its own that has emphasized home presentation. 

This theory is backed up with data from HomeGain.com.  For a modest investment, staging efforts bring three to six times their value increased prices, as noted in the chart below.

Part of staging is repainting dingy walls before moving, preferably in neutral shades.  While there may be a few potential buyers in the world that hate eggshell-colored walls, statistically, there are more who would reject a home because it had a fuschia living room.  Even when paint is in good condition, it tends to yellow with age, so a fresh coat brightens up a room and makes it inviting.

Buyers typically do not want to buy other people’s dirt, even if they are not good housekeepers themselves.  It’s really important that the house be clean and free of clutter.  If a house is clean but cluttered, the clutter is so distracting to buyers that it makes it harder for them to visualize how their things will look there.  Clutter also makes the buyer wonder if the seller is covering up a flaw.  Ideally, sellers should prepare for the upcoming sale of their home by selling or donating what they won’t be taking to the new home and by neatly organizing the rest.  Since it’s fair game for home seekers to open every closet, purging is a better technique than relocating clutter.

Because the yard is what potential buyers will see when first approaching the property, improving the exterior landscaping will add curb appeal.  (Some real estate professionals say people are attracted to a home within 8 seconds of seeing it!)  At the minimum, lawn and gardens should be neat and appear well tended to.  A plant on the porch might be nice touch accomplished by a $10 visit to Home Depot.  The rest of the exterior should look pleasing too.  A truck full of Home Depot geraniums won’t incite house-love if the siding is falling off or the steps are cracked.

The next level of staging, often done by professional decorators, designers, and real estate agents, concentrates on furniture rearrangement, accessorizing, and depersonalizing the space.  The idea is to make the home look more like a new model home.  Extra furniture might be put in storage so that a few pieces might be arranged to maximize the space.  Family mementos are often tucked away so potential buyers can more easily see their bowling trophies on the mantel in the family room or their mother’s picture in the living room. 

This last phase of staging is often replicated in vacant homes by renting furniture, as having furniture in the room gives a better perspective on room size.  Furniture also makes a home look more “wanted” and tends to make the home sell more quickly than an empty home.

Some of the staging effort may seem like common sense and some may seem contrived.  It’s best to remember that, especially in the current market, few homes sell themselves.  Proactive marketing effort is necessary to make a nice home an outstanding one on the real estate stage.  These days, there is so much competition among homes on the market that proper staging will give your home the applause and the curtain call you want – a sale!

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To begin your search for some beautifully staged (and non-staged) homes in Edina, visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

People are saying that mortgage loans are hard to come by, but that’s not true in all cases. Those with excellent credit and a reasonable income can still get a loan from a mortgage company or a bank. People with not-so-good credit are discovering that finding mortgage money can be a problem.

For those with less than stellar credit but with average or higher incomes who want to take advantage of the lower priced properties that have flooded the housing market, the answer may be finding an Angel. An Angel is an individual investor, usually with cash to lend to home buyers or someone who has a preferred rate with a bank. Sometimes the Angel is a friend or relative, but there are professional Angels as well. This is how the angel system works:

Let’s say that a distressed property is selling for $60,000 but the estimated worth, once fixed up, is $150,000. The needed repairs cost $20,000. Add the cost of the house to the repairs and you’ll need $80,000, an amount which comes out of the Angel’s pocket when he buys and fixes up the house.

Meanwhile, the hopeful buyer (we’ll call him ‘Bob’) rents the home from the Angel for $800 per month (1% of the cost of the house) for six months to a year as he cleans up his credit. (Remember this won’t work unless Bob has a good income and is willing to work to raise his credit score.)

After the six months (or more) have passed, Bob the Renter can become Bob the Homeowner with his improved credit score and a mortgage loan from a bank or mortgage lending company. The house is now fixed up and worth about $150,000, but Bob buys it for $100,000 from the Angel. The Angel now has $100,000 in cash from the home sale (a 20% profit on his investment) and Bob has a $150,000 home for which he paid only $100,000.

While not everyone has a friend or a relative who can help in this way, many mortgage brokers have contacts with Angels. Of course, any buyer who decides to use an Angel should be sure to understand how this system works, be willing to sign a promise to buy the home even while still a renter and must work to improve his credit score so that when the time comes, he can get a mortgage.

As with everything, there are risks, but for some, an Angel may be the answer to how to afford to buy a home. This scenario is only an example and every situation is different. Before making a commitment, talk to your real estate agent , loan officer or a real estate attorney to decide if an Angel is right for you and your circumstances.

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If you would like to see any of the homes listed in the Minneapolis area, contact me, Chris Prescott, at (952) 944-1728 or email me .

Click here to start your search for a new home.

Buyers who are still waiting for the residential real estate market to hit bottom may have waited too long. The first week in May signaled changes and while there will still be bargains to be had, they might become harder to find.

Housing sales were up for the second month and after five months of declines. At the end of March, there were 3.74 million existing homes on the market, taking an average of nearly ten months to sell. But foreclosures, short sales and bank-owned properties are suddenly selling briskly.

At the beginning of 2009, it was not uncommon to see foreclosed homes sit on the market for a year or more. Suddenly, starting at the end of April, real estate agents who specialize in foreclosed and bank-owned homes are reporting getting multiple offers after only a few days. Many of these homes need work. Some need a lot of work. Many of these buyers are investors, bringing in professional crews to fix and resell the homes in a couple of months. But, first-time buyers account for more than half of recent home purchases.

For those planning on living in their newly bought homes, low interest rates and the $8,000 tax credit/rebate for first-time buyers can help pay for needed repairs. Before clinching the deal, buyers need to have an eye for potential and an ability to look beyond bad paint jobs, ugly carpet and dirt. They also need to hire a professional inspector take a look at the house. It’s best to find hidden problems and be able to walk away before the final papers are signed than to discover that the ‘cosmetic only’ fixer-upper needs all new plumbing or major electrical work.

Handymen and women have an advantage, but whether new home buyers plan to do the work themselves or have experts do it for them, they need to factor in the costs of repairs. Real estate experts recommend that buyers come armed with a sharp pencil and knowledge what they can afford. If there are multiple offers, buyers should avoid getting caught up in a bidding war and paying more than the home is worth or more than they can afford. There are always more homes coming on the market from which to choose.

The price of foreclosed properties have also driven down the price of other non-foreclosed homes nearby and sometimes these homes are even better deals. They are usually in good shape and buyers have more bargaining power than with a foreclosure home, when every negotiation has to go through a bank.

The warmer weather and longer days are also a factor bringing out the buyers, especially in colder climates. Will this summer see an end to cheap homes prices? Maybe and maybe not. No one knows for sure, but what is certain is that right now is a good time – especially for first-time buyers – to buy a home.

If you are ready to take the leap into purchasing or selling your home, contact me, Chris Prescott, at (952) 944-1728 or email me.

Click here to start your search for a new home.

Fantastic multi-level home has great flow with open spaces. Gleaming hardwood floors and natural woodwork. Enjoy the cozy 3-season porch and balcony overlooking a large backyard with mature trees. Close to schools, parks, shopping and freeways. A must see!

There are a lot of people who are beginning to take advantage of the post-bubble home prices of bank owned properties to make a housing purchase before the chance is gone. If you are one of them, there are some things you should know before you make an offer.

Banks have no emotional ties to influence their side of the negotiation. The only thing banks care about is the amount of money in the offer. They often won’t accept that low-low-ball offer, but will accept some offers below the listing price. If your offer is too low, the bank will simply reject it. If the offer is within the amount the bank will accept, they will counter with changes, probably the only counter they will make. If there are multiple offers, banks favor the buyer who plans to make the house their home as opposed to the investor who will not.

Quite often, banks will have their own dense and legalistic forms that are unlike the usual purchase agreement forms used by real estate companies. Read these carefully, having your agent explain things you don’t understand, before you sign.

Once an offer is submitted, be patient. The purchase agreement you sweated over will go to the bottom of a pile of offers on the dozens of foreclosed properties assigned to the over-worked loss-mitigation worker you’ve been assigned. It can take two to three weeks to get an answer and nothing you or your real estate agent can do will speed up this process. However, once the bank either counters or accepts your offer, things will move quickly.

Banks want rock solid proof that you can pay for the home you want. Don’t delay seeing a mortgage lender to find out exactly how much home and what kind of loan you can afford. Do this before you start looking at homes.

Some banks will allow a small amount of seller-paid closing costs, but not always. Don’t ask for this unless you have no choice. While quick closes are often possible, banks discourage closing dates over 30-days past acceptance and can charge a daily fee for every day over their 30-day deadline.

Personal property like appliances have often been removed from the property by the seller or by the bank and shouldn’t be included in your offer. Former homeowners who have had their houses taken away by the bank may cause revenge damage or have simply deferred needed repairs because they didn’t have the money. Some need a few cosmetic repairs but others need thousands in professional repairs and replacements. The bank isn’t going to tell you about these problems. Pay the extra money for a professional home inspector so you’ll know just what you’re buying.

A bank-owned property can be a wise purchase, but it takes more work to buy than a regular sale. Keep your eyes open so that the decisions you make are the right one.

Contact me, Chris Prescott, today to see the selection of bank owned properties available in the Minneapolis area. Visit my website, MoveToEdina.com, to search local listings and view my Listingbook.

A new tax provision is offering capitol gains relief for widows and widowers who want to sell their houses after a spouse has died. While married couples can exclude a profit of up to $500,000 when they sell their home, single people are limited to a $250,000 tax break. Until recently, a widow or widower was considered a single person in the eyes of the IRS. But now, a surviving spouse can take the full $500,000 deduction if they sell the home within two years of their partner’s death instead of the previous one-year limit. The home must have been used as a principal residence for two out of the last five years and the spouse must remain unmarried until the home sells. Surviving spouses can subtract any money put into the home for repair and improvements. The new provision reflects the slower housing market and perhaps, a small amount of compassion that was forcing people who had just lost a life partner to make other difficult decisions too soon.

I received a call-to-action email from another Minnesota agent yesterday. I wanted to share portions of that email with my readers. Its troubling, segments of the Minnesota government appear to be trying to solve their financial problems by harming the housing market just as it is getting a foothold again. We may be able to stop this disaster from passing by contacting our legislators. Read on:

On Monday, the Minnesota House of Representatives Tax Committee released a "delete all amendment" to HF2323 and added provisions that are negative for real estate in the Omnibus Tax Bill. Authored by DFL Representative Ann Lenczewski, it contains a number of tax law modifications that hurt all Minnesota home owners.

Since 1992, even with all of the Budget Shortfalls Minnesota has faced, the government spending has increased each and every year. In fact, Minnesota State spending has gone from $14.5 billion in 1992/93 to $34.6 billion in 2008/09 - that's a whopping 138 percent increase.

To resolve the budget shortfall, the House/Senate DFL plans focus on raising taxes and reduce spending. Governor Pawlenty has proposed a plan focused on reducing spending and raising revenue without raising taxes.

HOUSE TAX BILL HURTS REAL ESTATE. The DFL House Tax Plan raises revenue by cutting a number of income tax deductions. Of significant concern to Minnesota REALTORS® and homeowners, the DFL House plan eliminates two major real estate tax deductions: the Mortgage Interest Deduction and Real Estate Property Taxes. The bill also eliminates provisions of the Relative Homestead Tax.

Elimination of Mortgage Interest Deduction (MID)- a feature of the tax code since 1933, the MID has helped numerous generations achieve the American Dream of owning a home. A significant public policy objective for decades, homeownership stabilizes families, neighborhoods and communities. The House DFL Tax Bill eliminates the MID for homeowners and replaces it with a "housing credit" for qualified homeowners. The maximum credit is $420, which is equal to 7 percent (7%) of up to $6,000 of mortgage interest paid during the taxable year. However, no credit is applied to the first $4,000 of interest paid.

This provision hurts young families disproportionately because mortgage debt loads are highest when people are establishing their households. This provision changes the financial plans numerous families have made when purchasing a home and increases the financial difficulties many are facing during this economic downturn. At a time when housing is finally getting a financial foothold why eliminate a tax provision that has helped millions of families achieve the "American Dream?"

Real Estate Property Tax Deductibility-This public policy provision has been included in the tax code since 1933 and allows taxpayers to deduct property taxes paid from their income. The House DFL Tax Bill eliminates the deductibility of real estate property taxes at a time when local property taxes continue to increase faster than Minnesotan's income.

Relative Homestead - If you own identical houses, with identical values, with identical tax rates you would assume you would pay identical taxes - Right? Not if the House DFL Tax Bill becomes law. In a provision of the bill, authored by a DFL legislator, families that provide housing to other family members will pay more taxes on the second home. The goal of the provision, as stated by the legislator, is to stop parents from buying homes for their college students. MNAR pointed out that this is a small piece of the overall program and instead the proposal will be hurting families trying to assist other family members who may have gone through job loss, divorce or other financial difficulties. Isn't it better to have families provide for families instead of government?

ACTION REQUEST: To fight this unbelievable proposal we are asking that you take three steps:

• Please contact your legislator and let them know how you feel about this proposal.
• Forward this email to your clients, customers and friends. Let them know what is being proposed and give them the web address to review the bill. www.house.leg.state.mn.us/hrd/bs/86/HF2323.html
• Go the extra mile and CALL your legislator about this tax bill. Let him/her know your concerns and how it will impact your clients, your family and your business. Let your Representative know that it is time for our elected officials to "LIVE WITHIN YOUR MEANS" by prioritizing spending and not raising taxes.

You can access the bill summary (48 pages) here.