7 TIPS IF YOU PLAN TO BUY A HOME
The Post Standard, Moneywise, July 17, 2006

1. Be sure you want to buy – don’t succumb to peer pressure. Buying a home is a personal choice and it isn’t necessarily the path to fun.

2. Know what you give up – a study by Peter Rossi and Eleanor Weber of the University of Massachusetts found homeowners spend less time with friends than renters do and more time on chores.

3. Know the benefits of owning – owning can be cheaper than renting. There are tax deductions for mortgage interest and property tax and a fixed-rate mortgage is a better deal than rent hikes.

4. Home value appreciation – the value of a home tends to rise as the years go by, turning your home into a forced savings account.

5. Don’t rush into buying – some real estate markets experience periods of rapidly rising prices. Patient buyers who wait out a surge can be rewarded with steadying or in rare cases lower prices.

6. Don’t rush to sell – if you bought a house in a thriving market 10 years ago, the temptation to sell and clear a tidy profit can be huge. But you need to know you can afford to replace what you’ve got.

7. Don’t get greedy – if you plan to move up, you may be tempted to put a high price on your current home. The danger is that you won’t find a buyer quickly and will end up lowering the price anyway.

TO REQUEST A TREE PLANTING OR REGISTER A "TREE COMPLAINT" …

The City Park Department plants curbside trees for city residents free of charge. For example, upon request, the city could replace your damaged tree with a healthy new one. You can even specify the type of tree that you want. To request a planting, register your "tree complaint" with www.zerodefectssyr.com or call 473-4337.

BUYING A FURNACE NOW SAVES GRIEF LATER …

If your furnace is more than 15 years old, you should consider replacing it with a high-efficiency furnace. It probably will cost around $2,500 to $3,500, but it can cut monthly energy costs by as much as 45 percent.

BE A LEAD-SMARTY …

Childhood lead poisoning is preventable. Prevention begins at home. Here’s some lead friendly tips that will help keep you and your family healthy.

• Have your children tested for lead even if they seem healthy.

• Wash your children’s hands before meals, snacks and before bedtime.

• Regularly wash your children’s pacifiers and toys.

• Remove your shoes before entering the house.

• Make sure your children eat healthy, low-fat foods. Milk, meat, poultry, fish, green vegetables and citrus fruits are all lead-friendly foods. Iron and calcium are very important.

• Make sure that your children get their rest. A good night’s sleep is very important.

• Regularly wet-clean your floors, window sills and other surfaces, and areas where your children play.

• Be aware of peeling and chipping paint. Talk to your landlord if you have questions or concerns.

• Have your home tested for lead hazards.

• Look for ASTM D4236 stamp on crayons and other products. This stamp means the product is lead free.

• Run your water for you 15 seconds before drinking it.

• Don’t try to remove paint yourself. You could cause more problems. If remodeling, call Lead Prevention at 448-8710 for some additional precautions.

TIPS TO PREVENT BURGLARIES …

• Lock the doors: Keep your doors locked at all times, especially when you are alone, sleeping, or the home is unoccupied, even if only for a few moments.

• Who’s knocking: Determine who is on the other side of the door before opening it. Have repair or service personnel show official identification and confirm their presence with the person requesting the service.

• Know the signs: If you return home and something looks questionable: a slit screen, broken window or open door, do not inside. Call the police from a safe location.

• Window peepers: Be sure you have blinds or curtains on your windows to discourage window peepers. Always keep your windows covered at night and leave lights on in two or more rooms.

• Value your possessions: Make a list of your valuables and record any serial numbers. Place items of value out of sight and in locked areas.

• Repairs: Be sure all outdoor lighting fixtures are in working condition and trim shrubbery.

• Secure doors and windows when you are away: Lock sliding doors and place a wooden or metal bar in the track of the doors. Make sure all
windows are secure and have curtains on them.

• Spare keys: Do not hide spare keys outside.

• Timer: Buy a time that automatically turns on exterior lights at a predetermined time or when it detects motion.

• Neighbor connection: Arrange for a neighbor you trust to watch your house while you are away.

• Take your valuables: Do not leave any expensive items near windows. Take pictures of anything valuable in case it is stolen.

• Stop the mail: Ask the post office to hold your mail until your return.

CREDIT RECORD BUREAUS KEEP NEW SCORE ON YOU …
Andrea Coombes, Washington Post, Marketwatch, March 20, 2006

The three main credit reporting companies report they have joined forces to create one credit-scoring system that will generate consistent scores across all three companies’ data. These scores can determine whether you can get a loan, finance a car, what your insurance rates are, and even whether or not you get a job. Once the companies Equifax, Experian and TransUnion start selling their new VantageScore, consumers are likely to get one consistent score from each of the firms rather than the three widely divergent scores often generated now. To be useful to consumers, a credit score has to match the score lenders are looking at. After all, if you’re looking at a 750 score from one company, but your lender sees 650 from another company, you’re in for a surprise – wither a higher than expected interest rate or denial of credit. The three companies should be selling VantageScore to consumers by year-end.

CREDIT TIPS …

While the scales differ, the rules for keeping your score high (701 to 800) are the same:

• Pay your bills on time.

• Don’t tap into too much credit in a short period of time.

• Watch your debt-to-credit limit ratio. Generally, if your outstanding revolving debt is 50% or more of the total credit available to you, your credit score will take a hit.

5 THINGS TO CHECK WHEN BUYING A HOME …
Mike Chapman, President of Closer Look Home Inspections Inc., Liverpool NY

1. Amateurish workmanship: It is important to make sure work in a home was done properly especially when it comes to checking on the quality of any home improvement work and additions that have been made to a residence.

2. Heating system: It is important to make sure a heating system in a home not only functions properly but functions safely.

3. Electrical: It is not enough for a would-be buyer to just go through the house to see if the lights turn on when a switch is flipped. The electrical system should be fully checked. And that includes checking to see if there is aluminum wiring, something not allowed in new construction, but was common for homes built between 1965 and 1972.

4. Roofing: While a would-be home buyer might think a roof looks okay from the ground level, it is important for the inspector to get up on the roof to look for potential problems that might not be visible from the ground. An up-close check of the roof can determine the age of the shingles to see if they are nearing the end of their life.

5. Grading and drainage: Improper grading and drainage is probably the most common defect found in doing home inspections. The failure to properly slope the land away from the foundation of a house typically results in water in the basement. Basement moisture and mold can be expensive to repair while it is fairly inexpensive to address the grading problem.

MORTGAGE HUNTERS …
James R. Hagerty & Ruth Simon, The Wall Street Journal, April 2006

Comparison shopping for mortgages has long been a tough job. In recent years, it has become even tougher amid the proliferation of complex new interest-only mortgages and others designed to enable buyers to delay more of the pain of paying off that debt. Now, as interest rates climb, it is important to aggressively shop around for the best terms. Over 10 years, a difference of just 0.125 percentage points on the mortgage rate on a $500,000 loan, can rack up more than $6,000 in extra interest payments.

The problem for borrowers is that lenders and mortgage brokers have an interest in making it tough to compare rival offerings. One of the quirkiest tools available is a web site, www.mtgprofessor.com. Fair Isaac provides mortgage tips on the consumer site, www.myfico.com. One of the biggest problems consumers face is that each lender offers different combinations of interest rates, fees and other terms, making it hard or impossible to make comparisons. It is particularly tough when you are not getting a plain vanilla fixed-rate loan. Your best defense is to do some research before starting to shop around. Sites include www.bankrate.com, www.HSH.com, and www.mtgprofessor.com. They not only explain basic terminology, but also tutorials and tools.

GIVING MONEY TO KIDS HAS MANY TAX-SAVING FORMS …
Jeff Brown, Syndicated Columnist, The Philadephia Inquirer

For people who want to get a tax benefit from year end giving and use financial gifts to achieve bigger goals such as reducing their own tax bill, starting a child’s college fund, or helping a son or daughter buy their first house, there are two things to remember:

1. You can give up to $11,000 a year to each of an unlimited number of people, with no immediate tax bills for the donor or recipient. For a married couple, that means $22,000 per couple. By making substantial gifts, you can reduce any estate tax you might eventually face.

2. You can give away an asset such as shares of stock that have gone up in value, the profits will be taxed at the recipient’s rate rather than yours, which is probably higher than, say, that of the grandchild who gets it. When the share are sold, the capital gains tax, if any will apply to profits that built up from when you bought the shares. So, if you are interested in giving stocks or mutual fund share, it could pay to transfer ones you already own rather than buy new ones. You broker or fund company can provide the transfer forms.

HOMEOWNERSHIP ASSISTANCE PROGRAMS …
In addition to UNPA, following is a partial list of Homeownership Assistance Programs:

• BANK OF AMERICA – Mortgages for Teachers + Police + Firefighters + Medical Workers – Call (800) 900-9000
• BANK OF AMERICA – Affordable Mortgage Product: Neighborhood Advantage Program – Contact Bill Fisher at 426-4268
• CHARTER ONE – Affordable Mortgage Product: PENNY CCHAP (Central City Home Ownership Assistance Program) – Contact Dave Betler at 797-4388
• CITY OF SYRACUSE – Home Equity Protection Program – Call 474-1939 x248 or visit www.equityhq.org
• CITY OF SYRACUSE – Employee Mortgage Assistance Program – provides opportunities for first time homebuyers in the City as well as current homeowners who want to buy in the City. Contact Catherine Faulkner with Key Bank, 385-0000.
• COVENANT HOUSING – program provides homeownership opportunities to persons with disabilities including mortgage assistance and renovation. Call 449-3552 x106.
• HOME HEADQUARTERS – Down Payment & Closing Cost Assistance – program provides grants up to $3,000 for qualified first time homebuyers who complete a HHQ Home Ownership Course. Also offer low interest loans for financial assistance for purchasing and renovating tax delinquent or vacant properties. Call 474-1939 or visit www.homehq.org.
• HOME HEADQUARTERS – Homebuyer Education Course: Buying a Home? What you Need to Know – Call Dionne Miller at 474-1939 or visit www.homehq.org
• HOUSING & URBAN DEVELOPMENT – Teacher Next Door Program – Call (800) 569-4287 or visit www.hud.gov
• HOUSING & URBAN DEVELOPMENT – Officer Next Door Program – Call (800) 569-4287 or visit www.hud.gov
• HSBC – Affordable Mortgage Product: SHOP – Contact Tanya Froio at 424-3057
• M&T – Affordable Mortgage Product: Get Started Affordable – Contact Barbara Mattison at 424-4475
• NEHEMIAH – Neighborhood Gold – down payment assistance program from national non-profit mortgage assistance corporation – Call (877) nehemiah or visit www.getdownpayment.com or www.neighborhoodgold.com
• NY STATE OFFICE OF MENTAL RETARDATION & DEVELOPMENT DISABILITIES – Home of Your Own Program – provides 4% mortgages for first time homebuyers who have developmental disabilities. Call (518) 473-1973 or (518) 473-1997.
• NY STATE OFFICE OF MENTAL RETARDATION & DEVELOPMENT DISABILITIES – Fannie Mae Home Choice Program – provides mortgages for the first time homebuyer with any disability or parents of disabled children. Call (518) 473-1973 or (518) 473-1997.
• CITY OF SYRACUSE COMMUNITY DEVELOPMENT – Home Purchasing Program – purchases and rehabilitates vacant and HUD properties and sells them to pre-qualified first time homebuyers through a lottery. Grants are available. New construction is also available. Contact 435-3558.
• PARTNERS TRUST – Affordable Mortgage Product: Great Beginnings – Contact Lynn Ames at 426-1051
• SOLVAY BANK – Affordable Mortgage Product: Home Headquarters Referral Program – Contact Al DeRosa at 484-2236
• SONYMA aka STATE OF NY MORTGAGE AGENCY – Affordable Mortgage Product: Achieve the Dream – Ask your mortgage lender about this program, call (800) 382-4663, or visit www.nyhomes.org
• SYRACUSE COOPERATIVE FEDERAL CREDIT UNION – Affordable Mortgage Product: SCARM – Contact Greg Knipe at 471-1116
• SYRACUSE UNIVERSITY EAST NEIGHBORHOOD GUARANTEED MORTGAGE PROGRAM – provides 100% guaranteed mortgage to faculty and staff of Syracuse University purchasing a home in the East or Outer Comstock neighborhoods. Contact S.U. Real Estate: Claudia Bement at 443-2104

HOME IMPROVEMENT PROGRAMS
The following is a partial list of Home Improvement Programs

• ARISE – Home Access Program – program provides grants for construction of wheel chair ramps and improving interior access for below median income residents in the City. Call 472-3171.
• CITY OF SYRACUSE – Lead Hazard Control & EMPACT Lead Dust Project – enables homeowners and investor-owners to obtain financial assistance for reducing lead paint hazards and provides city property owners and tenants free use of a HEPA-vacuum cleaner to reduce lead dust at their place of residence – Contact Westcott Community Center at 478-8634 or 448-8710
• EMPIRE HOUSING & DEVELOPMENT – program renovates vacant homes and homes in need of repair for below median income homebuyers in the City and Onondaga County. Grant available for purchase of homes. New construction available. Contact Bill DeMarle or Bob Sekowski at 425-7775.
• ENTHERM – free energy audits (savings up to $170) are available to University neighbors. Contact Bill Meadows at 420-2210 for more information.
• FEDERAL HOUSING ADMINISTRATION – FHA Mortgage Support Program for Energy Improvements – Ask your mortgage lender or visit www.fhainfo.com
• HOME HEADQUARTERS – Home Improvement Loan Program – provides low interest loans for home repairs. Call 474-1939 or visit www.homehq.org.
• HOUSING & URBAN DEVELOPMENT – FHA 203 K Mortgage Program – Ask your mortgage lender or visit www.fhainfo.com/fha203K.htm.
• NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY (NYSERDA) – Home Performance with Energy Star Program – home energy efficiency program that pays 50 percent of the cost of energy related improvements up to a maximum of $5,000 for families with incomes that quality. Call (877) 697-6278, visit www.getenergysmart.org or contact Home HeadQuarters for more information at (315) 474-1939.
• ONONDAGA COUNTY COMMUNITY DEVELOPMENT – RAMP Program – provides up to $5,000 for qualified below median income residents with mobility impairments to build ramps and interior modifications. Call 435-3558.
• PEACE INC. – Weatherization Program – provides assistance with home repairs to below media income homeowners. Call 470-3315.
• REVERSE MORTGAGES – You can find good basic information on reverse mortgages by visiting www.reversemortgage.org. Or you can go to www.hud.gov, click on "seniors" and then on "reverse mortgages" for a wealth of information. Also the American Association of Retired Persons at AARP Fulfillment (EEO1438), 601 E. St. NW, Washington DC 20049 offers an excellent, free booklet on the subject.

READY TO BUY? NOW WHAT DO YOU DO?
From The Post Standard, The Daily Dose, May 25, 2005

You’ve done the math, filled out the early paperwork and asked yourself a few questions. The answer you’ve come up with is that you’re ready to buy a house. Here’s some advice on what you need to do when you’re ready to buy a house:

1. Get pre-approved for a mortgage: After shopping around for your best rate, file a mortgage application with the loan institution of your choice. You need to bring lots of information with you, so don’t forget: a current pay stub, two years of W2s, two years of employer information, account information for checking, savings, IRAs, 401K and other investments. You will need to bring records of debt including credit cards, any loans and alimony or child support. The institution should notify you if you have been approved in 3 to 10 days. Your pre-approval will arrive as a formal letter and will tell you what you can afford based on what the bank is going to lend you. It also strengthens your buying power because the seller knows you’re in a position to purchase.

2. Set personal guidelines: Narrow down what you want. Where do you want to live? What school district? How much space do you want? How many rooms, closets, bedrooms, bathrooms? Are things like a backyard, garage, swimming pool, deck or other amenities important to you? How much are you willing to spend?

3. Start shopping: While many u se one, you don’t need a real estate agent to shop for a house, shopping without an agent can mean a lot of driving through neighborhoods, checking classifieds ads or searching local real estate web sites. Don’t be afraid to look at many houses. Take your time, take notes and shop around. If you do work with an agent, ask for references. Don’t be afraid to ask a lot of questions. They work for you.

4. Make an offer: Either you or your agent can present your offer to the seller’s agent who will accept, counter or reject the price. If your offer is accepted, you and the seller sign a purchase agreement detailing the sale terms. The purchase agreement should say whether or not you will have the house inspected, that your attorney has the right to review the agreement, and if you will have the house tested for radon. A real estate attorney should review your purchase agreement which they can do within 5 days. When your purchase offer is signed and approved, go back to the back and apply for your mortgage. The pre-approval is informal and not a guarantee of a mortgage.

5. Have the house inspected and appraised: In New York State, anyone can be a home inspector, so it’s a good idea to hire a certified inspector. They should investigate the house’s basic structure, systems and reveal any safety hazards. Findings from the home inspection can be negotiated again or you can reconsider the deal. Your lender will require the house to be appraised to determine its market value. This protects the bank and you from losing money on the loan.

6. Get insurance, title and homeowners: Your real estate attorney should research 20 to 40 years of history on the house and the property. Your attorney will tell you if you should purchase title insurance to protect yourself from outstanding liens, title or deed defects and ensure your ownership rights. Every homeowner is required to have homeowners insurance, which can be purchased through your existing carrier. You need homeowners insurance 7 days prior to closing.

7. Close: You officially become the homeowner at the closing. Bring a pens with lots of ink for that.

ENERGY BILL TAX REBATES …
BUYING EFFICIENT APPLIANCES CAN GET YOU UP TO $500 …
By Andres Martinez, Knight Ridder News Service, August 2005

Making energy efficient improvements to your home next year could net you a $500 rebate from the government. The offer is buried in the 1,724 energy bill that President Bush signed in 2005. It gives consumers a credit off the bottom line of their 2006 and 2007 taxes equal to 10% of their energy saving purchases. The maximum over the two years is $500 and applies to any owner-occupied home or condominium. It’s probably a good deal for you, although it’s pretty complicated. Home energy conservation experts say you’ll make the most out of the tax credit – and save even more on home energy costs in the long run – with the following approach.

First, pull together your utility bills and figure out what you’re spending on energy now. If you have a neighbor with a similar residence, ask what he or she is spending on utilities. If you’re a lot higher, you’ve got a lot to save. Not that if you’re in a condo, you’ll be eligible for a pro-rated share of any building upgrades. For most homeowners, the fastest way to earn the rebate – plus long-haul savings – is a "no brainer". Have the air sealing (draft protection) and attic insulation done. This work costs $2,000 to $3,000 for an average single-family home. It could cost five times that to replace old windows. Moreover, the small print of the new law lets homeowners deduct up to $300 for insulation and eliminating drafts, which is what air sealing is all about. The maximum deduction for new windows is $200.

How good a deal this or any other energy conservation outlay is for you depends on three factors: (1) how much energy you’re wasting, (2) how much the improvement costs, and (3) how much savings you’ll net. The Environmental Protection Agency helps you figure this out with a nifty interactive web site that asks you to describe your home, right down to the direction it faces, the window area on each side and the kinds of appliances you own. Ultimately it comes up with ways that can save the most. The site is www.advisor.lbl.gov/hit/controller. It’s a demanding exercise but more than worth the time.

The new tax rebate applies only to products that are more energy efficient than the minimum federal requirement. Such products bear the government certified Energy Star label, indicating that they meet the International Energy Conservation Code. Among the graded items are windows, heat pumps, water heaters, cooling system components, insulation and doors. For a complete list, go to www.energystar.gov then click on "Products" on the left side. Energy Star dishwashers, laundry machines and refrigerators qualify for a separate rebate. Dishwashers earn up to $100 based on efficiency, washing machines $100 and refrigerators between $75 to $175. Keep in mind that energy-conserving appliances are often more expensive.

For whatever energy-saving products or services you buy, save your receipts for your taxes. The rebate period begins Jan. 1, 2006 and ends Dec. 31, 2007. You can claim a total of $500 for purchases made between those dates.

MAKING THE MOST OF ENERGY SAVINGS …
U.S. Department of Energy

These tips can help you maximize benefits of the energy bill:

Weigh savings: Don’t buy something just because the rebate makes it attractive. You want to make improvements that will save you money over its lifetime in energy costs.

Free help: You may be able to get help from your utility company. Many offer free advice on-line, some even make house calls.

Get audited: If you want independent expert advice, consider getting a certified energy auditor to do a home inspection.

Cheap fixes: Some of the smartest fixes don’t cost much money at all. Caulky drafty windows and doors can cut energy costs by 10%. Yearly maintenance of your heating and cooling systems, which usually cost about $100, can reduce your energy bill by 30% or more. Replacing incandescent light bulbs with compact fluorescent ones can cut lighting bills by up to 50%. None of these fixes rate a rebate, however.

Update the updates: You can still claim a rebate if you replace an Energy Star appliance with another Energy Star appliance. It may not save you much beyond the tax credit, however.

For more help visit www1.eere.energy.gov/consumer/tips. You can also call the Department of Energy’s Information Center for the tips in booklet form. The number is (877) 337-3463.

PLAN GREEN DEDUCTIONS …
From The Post Standard, Moneywise, December 5, 2005

The new energy bill contains tax breaks for individuals who purchase alternative fuel vehicles or make energy-efficient home improvements. However, to receive the maximum tax savings, consider the timing of your purchases. For example, buying or leasing a hybrid car or truck in 2005 may net you a tax deduction of up to $2,000. But wait until 2006 to make your purchase, and this deduction is replaced with a tax credit ranging from $640 to $3,400. Tax credits are a more lucrative benefit as they offer a dollar for dollar reduction in tax. There are also new tax incentives for making energy efficient home improvements such as installing new windows or a hot water heater. These tax breaks are only available for improvements made in 2006 and 2007, so it may pay to put off these types of improvements until next year.

DON’T REPLACE YOUR DRAFTY, OLD DOUBLE HUNG WINDOWS
– RESTORE THEM!
Ten Reasons, by Steve Jordan of Historic Houseparts

1. Your windows need maintenance like any other household system, replacement is seldom necessary. Unfortunately a typical paint job does not include adjustment and often renders windows unusable.
2. Your original windows are a significant feature of your house’s original design.
3. A properly adjusted prime sash and storm window usually equals the performance of most replacement windows.
4. Your low-tech rope and balance system lasts indefinitely – 100 years in common. Numerous alternative systems have been introduced but none with the durability and longevity of the rope and balance system.
5. The wood in your historic window is more rot and insect resistant than the juvenile, finger jointed wood in new windows which is typically warranted only 10-20 years.
6. Wood sash outperforms vinyl and aluminum sash in durability and thermal conductivity.
7. Replacement parts and service will always be available for your historic wood windows.
8. Broken glass in your original windows can be easily replaced and inexpensively. Insulated glass is difficult to replace and the vacuum between the panes is seldom warranted for more than 10-20 years.
9. Durable weather stripping can be retrofitted to virtually any historic window.
10. Replacement window business profit from selling new windows, not from encouraging you to repair your old windows.

www.historichouseparts.com and www.windowrepair.com are great sites to check out!

STATE ADDS $10 MILLION TO HOUSING PROGRAM …
By Jill Primost, The Post Standard, December 3, 2005

The state will add $10 million to a program that lends money to first-time homebuyers with low or moderate income to help them with closing costs. With the addition money, the state will increase the amount families can borrow. The limit, $3000 or 3% of the mortgage amount (whichever is greater), will be raised to $5,000 or 5% of the mortgage. A portion of the $10 million will be used to pay for loan fees known as "points". The closing cost loan is forgiven after 10 years unless the buyer sells the house at a profit before that. The loan has zero interest and requires no monthly payment. The Closing Cost Assistance Loans program is administered by the State of New York Mortgage Agency (SONYMA). The loans are available to first time homebuyers who qualify for SONYMA mortgages. All SONYMA loan applications dated after December 8 will be eligible to receive the increased amount on a first-come, first-served basis. "The hope is to increase homeownership opportunities for low and moderate income families," said Tiffany Bern, SONYMA spokesperson. More information about SONYMA and the closing cost loan program is available at www.nyhomes.org. The website has been redesigned to make it easier for people to find information.

CARBON MONOXIDE SAFETY TIPS FOR YOUR HOME …
Adapted from the American Red Cross of Rhode Island Website

Carbon Monoxide is a colorless and nearly odorless gas that is poisonous to animals and people. Appliances that burn liquefied-petroleum gas, oil, coal, kerosene or wood may produce carbon monoxide. Read on to learn some of the symptoms of poisoning as well as some of the ways you can prevent dangerous carbon monoxide levels from forming in your house.

Symptoms: headache, nausea, fatigue, shortness of breath, dizziness

Preventative Measures:

− Buy and install a CO alarm. Make sure it is listed with Underwriter’s Laboratories (UL) or that information on the package indicates that it meets the requirements of IAS 6-96 standards. Follow the directions for placement and installation.
− Have a professional install your appliances to ensure it is done properly.
− Only burn charcoal outdoors. Never burn it in a tent, home, garage, or vehicle.
− Do not use portable fuel-burning camping equipment indoors or inside tents.
− Make sure you turn off fuel-burning engine equipment in a garage or basement. Just have the doors open does not ensure your safety.
− Always follow the manual directions when servicing fuel-burning equipment.
− Do not use gas appliances such as ranges or ovens to heat your home.
− If you use a fuel-burning appliance that is approved for indoors, make sure it is vented to the outside in accordance with the manufacturer’s instructions.
− Install and use exhaust fans over gas stoves.
− Open the flue when you use your fireplace.
− Have a professional inspect, clean, and tune up your central heating system annually.

Effective March 6, 2003, a functioning carbon monoxide detector must be installed in every one and 2-family house, coop or condo offered for sale.

DON’T LOSE YOUR HOME …
New York State Banking Department

There has been a disturbing rise in the number of New Yorkers being solicited by so-called "foreclosure rescue specialists".

Sometimes financial hardship or other circumstances beyond a person’s control can cause homeowners to fall behind on monthly mortgage payments putting them in danger of losing their home in a foreclosure proceeding. When a lender forecloses on a property, a public notice is issued in a newspaper of general circulation. That public notice is one of the ways in which a home mortgage foreclosure rescue scam can be triggered. The individual or the company, armed with the information published by the lender, makes a visit to your home or calls you on the telephone and offers to lend money to the homeowner in order to "stop foreclosure" or "save your house". Other ways include advertising through a flier, a billboard, or a general mailing, urging homeowners in financial trouble to contact them. They will often refer to themselves as a "foreclosure rescue specialist".

In most cases, the "loan" is not a loan. Unknown to the homeowner, the so-called specialist actually buys the home for much less than the fair market value of the house and gives the homeowner only enough money to make the mortgage payments current. Moreover, because the specialist does not agree to pay off or assume the homeowner’s mortgage, the homeowner remains responsible for the mortgage but no longer owns the property. In some instances the homeowner is given a limited period of time in which to buy back the house from the specialist for a sum substantially in excess of the mortgage – and usually more than the foreclosure rescue specialist paid for the home in the first place. In order for the former homeowner to remain in the house, he or she must pay rent to the new owner, the foreclosure rescue specialist.

To avoid being scammed:

− If you are having problems making your mortgage payments call or write to your mortgage lender immediately and be honest about your financial situation. Ask about renegotiating your loan or working out a payment plan. The sooner you contact your lender, the easier it will be to work out a solution.
− Contact a government-approved housing counselor (www.homehq.org).
− If you are a senior, contact the New York State Office for the Aging Senior Citizen’s Hot Line (800) 342-9871. Elderly homeowners on a fixed income can consider a reverse mortgage. A certified housing counselor can help a homeowner decide if a reverse mortgage is right for them. For more information, visit the AARP’s website at www.aarp.org/revmort.
− Common sense should tell you: never do business with anyone who come uninvited to your door, calls you on the phone or whose name you find randomly on a flier.
− Never sign any papers without reading them and never enter into any agreement – especially if it involves your home – without consulting your own lawyer (not one supplied by the individual pursuing the agreement). You can talk to a lawyer free of charge at the Westcott Community Center (www.westcottcc.org) or visit www.lawhelp.org/ny to find other free legal services.
− Get a lawyer. Call the Bar Association’s Lawyer Referral Program at (800) 342-3661 or visit www.nysba.org to find an attorney willing to help you fight the foreclosure.

If you think you’ve been scammed:

− Call the Consumer Protection Board at (800) 697-1220 or visit www.consumer.state.ny.us.
− If you think your mortgage lender has included terms which may be illegal in your loan agreement, contact the Banking Department at (877) BANK-NYS or visit www.banking.state.ny.us to file a complaint.
− Contact the New York State Attorney General’s consumer hot line at (800) 771-7755 to report possible fraud.

WHAT YOU DON’T KNOW CAN HURT YOU …
From The Post Standard, Moneywise, August 29, 2005

Credit reports provide clues to identity theft. Errors on them can harm your ability to borrow. What you need to know:

1. What are credit reports? Records of your accounts maintained by information-gathering companies called credit bureaus. The credit bureaus sell the information they have about your to businesses wanting to know if you are a credit-worthy person.

2. Why do they matter? A good report will get you a cheaper rate on a car loan, credit-card purchase or a home loan. A bad credit report could prevent you from getting a loan or even a job. Unfamiliar information in a credit report can be a sign that your identity is being used by someone else to rack up charges in your name. Errors could cost you hundreds in interest.

3. What’s free Sept 1? Residents of New York and 14 other states can get free copies of their credit reports, something the rest of the nation has been able to do for months. Each of the three biggest credit bureaus must give a consumer one free credit report a year, if the consumer requests it.

4. Where do I get a credit report? All three credit bureaus have created one clearinghouse to process requests for free reports required by law. Requests can be made to the clearinghouse online at www.annualcreditreport.com or by phone at (877)322-8228 or by TDD at (877) 730-4104 or by mail to PO Box 105281, Atlanta GA 30348-5281.

5. What’s the catch? There are lots of other website, legitimate and bogus, that look like the place to get a free report. At best, they’ll end up charging for their service. The Federal Trade Commission August 16, 2005 ordered a subsidiary of Experian to make amends to customers who had unwittingly been charged for a year’s subscription to a credit check service. Be careful which box you click.

6. So what’s the score? The credit bureaus and the analytical company Fair Isaac Corporation all offer something called your "credit score". This score is a mathematical summary of the credit report contents and it sums up in one number whether you’re a good credit risk or not. Really good credit scores are 750 or higher.

7. The score is not free: Each bureau also will sell you your score. The law does not require that they offer a free score. Many spots on the bureau’s websites say "free score", but they’re all offered in a fee-charging package with a report or a monitoring service. These fee services let you check your report throughout the year or notify you if negative information appears in your report. Costs range from $4.95 for a single check to $99.95 for a year of daily monitoring. Again, be careful which box you click. You might get a monitoring service or a score and not your credit report.

8. You can’t change the score: Well, you can, but only by improving the basic information on your credit report. If there are errors in your report and you can prove it, you may get them changed and that shouldn’t cost you anything more than time, aggravation and paperwork. If you dispute something, you also can get your summation of the problem included with the report.

9. The strategy: You could check your reports at each of the three bureaus for free after September 1, but you would have to wait 12 months to check them again for free. So, even the bureaus recommend that when ordering your free reports, tap one bureau now, another early next year and the third next summer. That’s give you an idea of where you stand year-round for free. If you’re going to borrow money to buy a house or a car, it’s worthwhile to pay to check your score, too, so you can negotiate for the best rates.

10. Why have credit reports? They speed up lending and help take personal prejudice out of the process. Without them, your ability to borrow money would hinge on whether the lender knew your and felt like taking a risk on you.

HOMEOWNERS, REMEMBER YOUR SCHOOL TAX BREAKS …
DON’T FORGET TO APPLY ANEW FOR STAR ON BIG OCCASIONS …
From The Post Standard, Moneywise, August 29, 2005

If you’re buying a home to live in or just turned 65, remember that New York’s STAR School Tax Relief program can save you hundreds of dollars. The Basic STAR program gives homeowners a school tax exemption on the first $30,000 value on their primary residence or $20,100 for Syracuse homeowners. Homeowners age 65 or older may be eligible for the Enhanced STAR program, which increases the exemption to $50,000, provided they meet income limits. The exemption is lower for Syracuse homeowners and for homeowners in four cities where school tax is included with city tax. The average Basic STAR savings for a homeowner in Onondaga County for the 2005-2006 tax year is $710 and $1,040 for the Enhanced STAR.

Once granted, the Basic STAR exemption continues, but it is not transferred if you buy a new house. Likewise, if you turn 65, you have to apply again with proof of age and income before you can get the Enhanced STAR exemption. To receive the exemption, you must apply for it through your local assessor’s office. Contact the assessor for an application and to check the deadline date for the application. That State Department of Taxation and Finance advises sending the form to the assessor by registered mail with a return receipt requested and keeping a copy of your completed form for your records. If you’ve already applied and received the exemption, it should appear on your school tax bill.

RADON GAS IS A SILENT KILLER …

There could be a silent killer in your home. This killer is radon gas. Radon is the second leading cause of lung cancer. It is a gas that you cannot see, taste or smell. It enters a home through basement floor drains, sump pits, and cracks in the foundation. To find out if your home has radon you must test it. For more information, contact the Onondaga County Health Department at (315) 435-6613. Ask to receive a free test kit while supplies last.

BUYER BEWARE …
By Tasneem Grace Tewogbola, The Post Standard, The Daily Dose

Here’s a quick "false estate" guide to phrases that may draw your interest during a home search but that you should be wary of:

− Recently remodeled: How recent is recent? What constitutes remodeling?
− Hardwood throughout: Don’t be surprised if those woods are covered in carpet and the only peek you get of them are of the closet floors.
− Park like setting: Could mean the backyard has not been tended in many years and the resulting overgrowth has a certain "woodsy" quality to it.
− Family neighborhood: This does not necessarily mean libraries, sidewalks, or playgrounds. It could mean corner stores, Laundromats and bars. Family is different to everyone.
− Historic neighborhood: Again perspective matters. Historic can mean if you check your local archives, the area was once lovely or it can mean the house borders a nice area.
− Needs TLC: Get ready for home repairs and try to see beneath major flaws, the beauty of this one may be hidden.

THE NEW MORTGAGE RISK …
From Good Housekeeping, Money Talk, September 2005

With home prices creeping up, banks have come up with a new kind of mortgage, designed to keep your initial monthly payments low. Beware of "interest-only, adjustable rate loans" that can get you into trouble. The upside is you will pay no principal for a period of 3 to 10 years. So you’ll pay less per month than you would with a traditional mortgage, helping you afford a more expensive home. Yet interest-only mortgages can really cost you in the long-run. Here’s why:

− Skyrocketing Payments: After the interest-only period expires and you start paying off principal and interest, the monthly payment may increase by as much as 40%. If interest rates rise, your payments could increase even more.
− No Room to Maneuver: By not paying principal, you avoid building equity in your home. Without that cushion, you may find you owe more than your home’s value if real estate prices in your area drop at a time when you have to sell.
− A Better Alternative: If you’re stretching to buy that dream house, and you think your income will rise over the next few years, consider a 5-year traditional adjustable rate mortgage. Currently "adjustables" offer rates about 1 percentage point below what fixed mortgages offer. You’ll also be paying off principal as well as interest, so you’ll be building equity.

 

MARTHA STEWART MAGAZINE AIMS AT NEW HOMEOWNERS …
Mediaweek, December 2005

Martha Stewart plans to launch a new magazine aimed at thirtysomethings and their interest in their first home. The magazine called Blueprint, is expected to debut in May 2006. Subject matter will include renovation and furnishing tips as well as broader topics, including entertainment, fashion, design and travel.

HOW TO DISCOURAGE BURGLARS …
Tips from the Syracuse Police Department & Syracuse University Department of Public Safety, December 4, 2005

Most burglars are opportunistic, police say. They rarely spend a lot of time trying to get in a home and typically won’t bother breaking into a house unless they know there are valuable items inside. Keeping burglars guessing and making entry into your difficult may spare you the trouble and expense of dealing with a break-in.

− Case your home like a burglar would. Try to spot easy ways to break in, then fix the problems. Lock doors, windows and screens. Use grates on ground level windows.
− Install motion detectors outside the home. Trim foliage. Make sure your front door is visible from the street.
− Use timers on inside lights and television sets. Leave a radio on, preferable on a talk-radio station. Put a vacation hold on your mail. Don’t tell people you are out of town on your answering machine.
− Join a neighborhood watch group. Ask a trusted neighbor to look out for suspicious activity, then return the favor.
− If you are at home during the break-in, leave immediately and call police. If you can’t escape safely, lock yourself in a room with a phone and call police. If an intruder enters your bedroom, pretend you are asleep.
− If you come home and discover you’ve been burglarized, don’t enter the house. Call police from a different location. And don’t clean up until police finish their investigation.

LOST JOB, BUT HOPE TO KEEP HOUSE?
Here’s some advice …
If your mortgage is an FHA mortgage, the government offers a "forebearance" program that may help you through a rough spot. With any type of mortgage, if you’ve had a good payment record before one specific problem, the lender may be willing to arrange something. Recasting your loan for a longer term and lowering monthly payments is one possibility. Do not hesitate calling your mortgage company and ask if it has someone handling "workouts". You have nothing to lose by investigating.

RESCUERS OFTEN STEAL HOUSES
Excerpt from The Post Standard, Real Estate Notebook, May 22, 2005
Consumers advocates are lobbying for laws to protect homeowners from a particular species of real estate vultures, one that offers to help struggling homeowners avoid foreclosure only to steal their houses away. "Foreclosure rescue" scams are showing up all over the state, often targeting elderly or low-income homeowners who have fallen behind on their mortgages. With support from leaders in both parties, the law seems to appear to have a good chance of passing. In the meantime, people should be extremely wary of any solicitations from people or businesses offering to help them avoid foreclosure. "If somebody is hounding you … so that they can help you … beware," warns Merilee Witherell, Executive Director of the Fair Housing Council of Central New York. There are legitimate sources of help with mortgage problems. Consumers often get help from nonprofit organizations such as the Fair Housing Council of Central New York (471-0420), Home Headquarters (474-1939) or Consumer Credit Counseling Service of Central New York (474-6026).

MAKE YOUR HOME WORTH MORE
From Good Housekeeping, April 2005
When it comes time to sell your house, some improvements pay off more than others. Smart improvements may be just the thing to make your home more appealing even in a sluggish market.
According to Remodeling Magazine, among the most popular home renovation projects that enhance the enjoyment of your home, are: installing new siding, refinishing the basement, and adding a family room or sunroom to the ground floor. Some the best home renovation projects that enhance the value of your home when it comes time to sell are: kitchens, bathrooms, and outdoor space
Regarding kitchens — anything that makes a kitchen more open, homey or useful. Improvements that have widespread appeal among buyers include: ceramic tile floors, wooden cabinets, solid-surface countertops, stand-alone islands, and energy saving appliances.
Regarding bathrooms – double sinks, recessed medicine cabinets, and ceramic tile on walls and floors are all home runs.
Regarding outdoor space – creating bigger outside living areas is a huge trend now. A patio made of clay or concrete pavers – available in a wide variety of colors and shapes – is easy to install and less expensive than a wooden deck. Plus, you’re bound to get your money back. I you do go with a deck, be sure to use the new, low maintenance materials available.

HOW TO KNOW WHEN YOU’RE READY TO BE A HOMEOWNER?
The Daily Dose by Emily Kulkus

1. Ask yourself the following questions: Why do I want to own a home? How long do I want to stay in the property? Is my income secure enough to support a mortgage? Do children factor into my decision for concerns such as space or schools? Am I prepared for homeownership responsibilities (paying taxes, repairing a broken hot water heater, mowing the lawn)?

2. Count your pennies: Be familiar with your income, your debt and your job stability. Banks look at you if you have stable employment, usually two years at the same place. Calculate your total debt including outstanding loans and credit cards. That total should be around 41 percent or less of your gross income. When budgeting, estimate that 25 to 30 percent of your income should be housing costs. That figure includes mortgage payment, taxes, and homeowners insurance.

3. Check your credit: Every lending agency is going to examine your credit history so you should know it best. Check your report and score with all three agencies: Equifax, Experian and TransUnion, which are available on-line. Check the reports for errors or discrepancies. Banks usually take an average of the three. Mortgage companies want a credit score* of 620 or higher. Banks also look at the life of your credit and if you have maxed-out credit cards.

What is a Credit Score?
Along with your credit report, lenders request a credit score called a FICO score to help decide whether you’re eligible for a loan. A median credit score ranges from 690 to 740. It’s a summary of your credit information and covers: 35% payment history + 30% amounts owned + 15% length of credit history + 10% new credit + 10% types of credit used.

4. Get pre-qualified (and that’s different from pre-approved): Before even applying for a mortgage, get pre-qualified. The process is an easy, non-committal way to find out if you’re ready to buy a house and to see how much house you can afford. Banks, credit unions or housing agencies such as Home Headquarters can determine if you’re pre-qualified based on y our income, debt and credit. After the pre-qualification process, you should know if you’re ready to approach a bank about a mortgage or if you need to work on your personal finances. Pre-approval is a formal process with a bank to find out if you can get a loan.

5. Shop for a mortgage: Call at least three banks to find you best deal. Ask about: interest rates, first-time home buyer programs, application fees, penalties for paying off the mortgage early, automatic withdrawal plans, bi-weekly payment options and other fees. You don’t have to give any information during this process. You’re just asking questions. Once you find a bank, you can apply to get pre-approved for a mortgage which can take one to 10 days to process.

CHECK YOUR CREDIT REPORT EVERY YEAR
From Marketwatch, March 2005
According to a 2004 survey by Experian and The Gallup Organization of 2,007 adults, 48 percent of Americans have never checked their credit report. Checking your credit report is vital for your financial success not to mention your sanity. Your credit file can reveal poor credit decisions, late payments and such, that can prevent you from getting a lender’s best interest rates when you invest in a mortgage. Reviewing your report can also help determine if you’ve been a victim of identity theft.
New York residents can now get a free copy of their credit reports by calling (877) 322-8228 or visiting www.annualcreditreport.com

ESTABLISHING GOOD CREDIT
From Bank of America, www.bankofamerica.com
Here’s some suggestions how to maintain and/or establish good credit: pay all your bills on time, open a checking or savings account, apply for a credit card with the lowest possible interest rate, control your debt and avoid missing payments, keep within a reasonable budget, retain copies of monthly bills, keep copies of canceled checks for the past two years to show you paid your bills on time; request a reference letter from your landlord, telephone company or utility company stating the duration and favorable payment history for your account; and submit your full legal name on all credit applications.
Here’s how to control your spending habits and improve your credit: establish and maintain a budget to manage your expenses, set realistic spending goals and stick to them, track your spending and keep copies of your receipts, keep credit card balances low and avoid late payments, and save up over time for large purchases.

 



REAL ESTATE ALERT – CARBON MONOXIDE DETECTOR LAW
Effective March 6, 2003, a functioning carbon monoxide detector must be installed in every one and two family house, coop, or condo offered for sale. The new law does not apply to New York City.

HOMEOWNERS INSURANCE: DO YOU HAVE WHAT YOU REALLY NEED?
Excerpt from Loose Change, Nov/Dec 2004
A Commonfund Mortgage Corporation publication

Feeling secure about your homeowners coverage? Maybe you shouldn’t be. Unless your policy provides replacement cost coverage for your home’s contents, you could be faced with a significant cash outlay if you need to replace damaged items someday. Why? Although homeowners policies generally cover the replacement cost of the actual structure of your home, they may cover only the "cash value" of your personal items.

What does that mean? Replacement cost coverage replaces an item at today’s prices. But with actual cash value coverage, the insurer deducts for an item’s depreciation. Depreciation can be a big factor in how much you receive from insurance, especially if the item is several years old. So the check you get from your insurance company may not be enough to replace the item without adding in some – maybe a lot – of your own money.

What are your options? Check your policy. If you don’t have replacement cost coverage, you may want to consider it. While you will pay a higher premium, most insurers offer – and recommend – replacement cost coverage. Note that some insurers exclude or limit the replacement value of certain items. Review the policy for any exclusions or limitations. You may want to add special riders to cover things that are not covered by your policy.

Keep in mind that you’re insuring only your home and its contents. Don’t include the value of the land when you estimate the amount of coverage you’ll need.






NO DOWN PAYMENT NEED FOR MORTGAGE FROM FHA …
The U.S. Department of Housing and Urban Development announced 1/19/04 a new program that will allow first-time home buyers to get a mortgage from the Federal Housing Agency without worrying about down payment.

The zero down payment program, is expected to generate 150,000 new homeowners a year, said FHA Commissioner John C. Weicher. "Offering FHA mortgage with no down payment will unlock the door to home ownership for hundreds of thousands of American families, particularly minorities."

For more information, contact a mortgage representative.






MORTGAGE FRAUD CAN HURT HOME BUYERS
Excerpt from a Washington Post Writers Group column on the Nation’s Housing.

When a home buyer has a high credit score (in the upper 700’s), is self-employed with an annual income of more than $100,000, owns a few rental properties, is purchasing a house priced well above the area average, and is buying it alone, what comes to mind? Solid citizen? A good addition to the neighborhood? Sure. But, would you believe fraud? Would you believe that statistically the buyer with that profile is more likely than any other loan applicants to be involved in some form of mortgage rip-off skull-duggery when the lender he or she is applying to specializes in loans for home buyers with imperfect credit?

Welcome to the booming, and sometimes bizarre, world of mortgage fraud. With larceny in their hearts and sophisticated electronic document-preparation programs in their laptops, unethical mortgage loan officers, brokers, real estate agents and lawyers can create fake credit scores, fake tax returns, fake identities and order up inflated appraisals. And, according to witnesses at a 10/7/2004 congressional hearing, mortgage fraud is now one of the hottest con games going.

The potential cost to homebuyers and mortgage lenders could be in the billions of dollars per year range. Frequently fraud ends up hurting not only lenders but innocent consumers too. An example is a first time homebuyer who was persuaded to purchase a property that was significantly overvalued because of a fraudulent appraisal. The seller pocketed big profits, but now the buyer finds herself unable to refinance and unable to pay off her loan by selling the house because the property is worth less than the mortgage amount. And, faced with more fraud than ever before, lenders nationwide are adopting defensive tactics to sniff out con jobs before they succeed.

So, what’s the takeaway here for homebuyers and borrowers who harbor no fraud in their hearts? First, be aware that mortgage cons are rapidly on the rise. Not all appraisers and loan officers you encounter are necessarily playing the game straight. Con artists can harm innocent purchasers who end up with loans they don’t want, can’t afford, and can’t get rid of. Worse yet, if lenders keep losing millions of dollars to fraud, they’re going to pass along those costs to all borrowers in the form of higher fees and interest rates.