Shout it Loud Lake Havasu City Citizens

Lake Havasu citizens will get the chance to give their opinions and possibly select future businesses that set roots in Lake Havasu City next month.  So, get ready Lake Havasu citizens and shout it loud.  This is your town and Lake Havasu City real estate is a hot spot.  Therefore, get your opinion on the table, too.

The City of Lake Havasu City will be doing a Retail Recruitment Survey that is being organized by the Partnership for Economic Development.  Residents will receive the survey along with their water bill.  And, depending on the response rate that they receive, lucky national retailers could select Lake Havasu City as their home destination. 

Over 26,000 survey forms were sent out to see what kind of reaction the citizens will be giving.  The survey will give insight for eight large retail stores, 14 restaurants and 35 small retail locations.

Many companies have already said they are very interested in coming Lake Havasu City, Arizona, but are just not sure how many people are interested in having them come.  Therefore, the city came up with a great plan to let the citizens tell them which companies they are most interested in having come and ask them which ones they would most frequent.

The City of Lake Havasu and interested businesses alike are hoping people will respond so they can clearly see just how many residents are interested in which stores they want in their community.  Once the information is compiled, the store or stores chosen will be announced in February.

So, Lake Havasu City citizens, shout your opinion loud and make sure you are heard.

Realtor® Liz Miller ~ Lake Havasu City Real Estate

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Decorating Your Home for Christmas

When you get in the holiday spirit, you just can’t help but want to decorate your home to add cheer and spice up its environment.  Therefore, I have a few Christmas decorating ideas to help you create memories that will last a lifetime.  And don’t forget to get your kids to join in on the fun.

* Fill your home with a festive scent by gathering evergreen branches and boughs.  Place them on your mantle, staircase, front door, etc. for beautiful decorations.

* Consider a completely different Christmas tree this year.  Maybe one with only white lights or a completely bare tree so you can marvel at nature’s perfection.

* Place large pine cones in groups bound with ribbon.  You can then hang them from doorknobs, windows or stair banisters.

* Add Christmas cheer in unexpected places around your home like the bathrooms.  Adding lights around the mirrors or hanging festive ornaments from the lighting will surely spice up these rooms.

* Nuts are a traditional holiday favorite.  You can use them decoratively by hanging nut clusters from pretty bows and attaching them to boughs throughout your home.

* Natural fruit can be placed in decorative bowls for a great added touch.  Items such as pomegranates, oranges and apples make a great mix.

* Finish off your rooms with nativity scenes, angel figurines, decorative ornaments or any of your other favorite Christmas decorations.

I hope these Christmas decorating ideas are helpful in getting your home in the holiday spirit.

Happy Holidays ~ Realtor® Liz Miller

Lake Havasu City Real Estate

Lake Havasu’s Thanksgiving Regatta

The Thanksgiving Regatta in Lake Havasu is always a huge event which turns out many eager racers.  Therefore, I would like to share some of the high points about the race with anyone who wants to get in on the fun and action. 

When visiting Lake Havasu, you’ll soon find that no matter what time of year, there are always people on the water having tons of fun. So, November is no exception and a regatta is the perfect time to enjoy lots of action.

Regatta Host

The Thanksgiving Regatta will be hosted by the London Bridge Yacht Club.

Regatta Rules

Sailing instruction will govern only in the event of conflict. You can get sailing instructions and course maps at the skipper’s meeting.

Entries

One design (Holder 20, Catalina 22, Catalina 25, Santana 23, etc.). A minimum of 4 boats is required to constitute a class and they must be preregistered; PHRF Spinnaker & Non-Spinnaker.

Advanced Registration

Yachts can register in advance by completing the entry form and sending it and payment to: PO Box 1635, Lake Havasu City, AZ 86405.  You can also fax your entry form in to (928) 680-4102.  However, entries are not complete until payment has been made.

Fees

Advanced registration is $35 or regular entry fees are $45.00.  The yacht club asks that you please make checks payable to LBYC.

Skipper’s Meeting

The skipper’s meeting will be held at the London Bridge Yacht Club, Lake Havasu Marina, 1100 McCulloch Blvd. at the end of P Dock on November 25^th at 9:30 a.m.

I want to wish all Thanksgiving Regatta racers good luck.  Have fun and have a Happy Thanksgiving.

Help for Your Thanksgiving To-Do-List

It seems like each holiday season, we can barely get through with Halloween when Thanksgiving is upon us.  Many of us will go out of town to visit family and friends and others of us will be welcoming those family members and friends into our homes.  Therefore, it’s important to make sure they feel comfortable and welcome when they come to visit. 

If you’re like most homeowners, you have a Thanksgiving to-do-list a mile long.  So, I’d like to extend my advice on getting your home ready for your visitors this Thanksgiving holiday in a timely and orderly fashion.  Once these tasks are finished, you will be able to glide around and be the cool host that you are.

Access What You Need to Do

Decide what projects you want to take on around the house.  Will it be a major sprucing up, a one room makeover, holiday decorating or a good fall cleaning?

Determine How Long Each Project Will Take

Depending on the project or projects you decide to take on, the length will vary.  You should carefully consider how much time you have and how much time you want to spend on the project.  Don’t dilly-dally around.  Make each moment count, especially if you are on a time crunch.

Schedule Your Time

Once you have determined how long the project will take and how much time you are willing to spend on it, get a calendar and make yourself a schedule of which days you will work on your projects.

What Materials Do You Need

Make a list of the materials that you will need for your project.  Check your list for items that you already have around the house.  This way you are only purchasing what is absolutely necessary and you can stay within a budget, if needed.

Look for Sales

If you are on a budget, keep an eye out for sales on home improvement items such as paint, carpet remnants, spackling, picture framing, cleaners, upholstery, furniture, etc.

Final Touchups

For last minute touchups that really make a house shine, you should clean all the windows and glass doors, clean your baseboards, add fresh flowers, make sure all the dishes are clean on the day your guests are expected to arrive and set out some potpourri for a nice fresh scent.

For more great holiday tips and advice, visit the DIY website.  They have some really great money saving ideas for everyone.

Enjoy your Thanksgiving holiday season ~ Realtor® Liz Miller  

Using Your Home’s Equity for Retirement

When it comes to retirement, we plan and plan and still have questions.  One of the top questions for homeowners when it comes to retirement is what should we do about the equity in our home?  Therefore, I thought it important to cover that in my current blog since there’s not a lot of information about it.

The equity that you have in your home represents a large part of your wealth.  For married couples, your non-financial assets represent about 70% of your combined assets. 

There are many financial planning programs available.  However, many of them lack the ability to figure out what role housing wealth should play in your retirement.  When it comes to middle class Americans, housing wealth should play an extremely important part in financing their retirement.  But, it doesn’t seem to be a primary consideration when they begin planning.  Thus, there is a void of housing wealth in financial planning programs.

When it comes to homeowners who have 70% of their wealth tied up in their equity, there are a number of options for them to use that money for their retirement needs. 

Here is a list of some of the options you have to unlock the equity in your home:

* Sell and downsize to a smaller home.  This frees up funds for to invest or for an annuity purchase.

* Pay off the mortgage, if possible, to reduce overall expenses.

* Secure a home equity loan or secondary mortgage on the home.

* Sell your home.  Invest the proceeds and then rent.

* Rent out extra rooms.

* Get a reverse mortgage.

* Keep the house mortgage free and let its value serve as an emergency fund if needed.

* Rent out your primary residence and live elsewhere at a lower cost.

Not every one of these options will be viable for one’s retirement plan, but they are presented to help retirees use the equity in their home when it’s time for retirement.  In the meantime, researchers are working on new financial planning models that will include a way for homeowners to incorporate housing wealth in their retirement plan.

Just Call Realtor® Liz Miller for all Your Lake Havasu City Real Estate Needs

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Buying a Home for the First Time: What You Need to Know

There are still many people across the country who are considering buying a home for the first time.  And, with the $8,000 federal tax credit getting ready to expire on November 30^th, many of them are on a time crunch. At the same time, every consumer still wants to successfully buy their first home.  Therefore, if you are considering taking the plunge to buy your first home, I have some advice on what you need to know to help it be a successful purchase.

Although home prices have declined, purchasing a new home can still be more challenging than it was a year or two ago.  Because of one of the biggest housing market crashes in history, lenders are now tighter than ever with their lending standards, which makes it more difficult for buyers to get the financing they need.

For those who are still ready to make that big step, here are some helpful tips on what you can do to be a successful homeowner:

Do a careful inspection of your credit report to learn what your credit score currently is and to find out if there are any bad marks you need to know about.  Lenders will check your credit report to see if you have the means to pay the mortgage on the home you want to purchase.  The higher your credit score, the more favorable an interest rate and terms you will receive on your mortgage loan.  You can check your credit report and score through many online companies for free.

Become familiar with mortgage conditions and terms.  A mortgage is a legal and binding agreement between the buyer and lender of a property.  Being familiar with all the conditions and terms before you sign any legal documents, even a mortgage, will help you know that you are not being pressured into signing something you don’t completely understand.  If you need assistance understanding the legalities of mortgage terms and conditions, you can seek assistance from an attorney or a real estate professional.

Hire a real estate professional to help you through the entire process.  Buying a home will most likely be the biggest financial transaction you will ever make in your lifetime.  Finding a trusted real estate professional to help you through the process will help you feel less overwhelmed.  A realtor will help you understand everything from beginning to end and help you feel more confident in your purchase.  They will also be most useful in dealing with the complexities of purchasing a home.

Following these tips can help your home buying process go more smoothly.  Just be sure to seek any advice needed when having difficulty understanding anything about the home buying process.

 

Just Call Realtor® Liz Miller for All Your Lake Havasu Real Estate Needs

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Baby Boomers’ Preferences in Real Estate

Baby Boomers’ preferences in real estate are different than their predecessors.  We won’t talk about age here.  BUT if any of this applies to you, well, we won’t tell anyone.

The Baby Boomers, who are currently age 45 to 63, have had an impact on society, starting with their childhood to their transition into retirement.  Recognizing the importance of this influential generation on the housing industry, the MetLife Mature Market Institute (MMI) and the National Association of Home Builders (NAHB) embarked on a research project that closely examined the 55+ population (the “Boomers” as well as older cohorts) preferences in homes and communities as well as the housing industry’s response to consumer demand.  The end result is “Housing for the 55+ Market: Trends and Insights on Boomers and Beyond”, one of the most comprehensive reports dedicated to this segment.

One of the most interesting items in the report was that they want smaller homes that are easier to take care of.  The preferred size of those surveyed is 1,903 square feet.

Other key findings:

• The majority of 55+ households do not live in age-restricted (also called age-qualified) or other 55+ communities.  Yet, that number is on the rise.  Residents in this type of community registered the highest satisfaction rates.  However, most 55+ respondents indicated they were happy with their current homes.

• The main reasons for moving to a 55+ owner-occupied community were family or personal reasons, financial or employment reasons and the desire to have a higher quality home.  In multi-family communities, family was the number one reason.  But, reducing costs and increasing quality were also top priorities.

• Within the community, design and looks were most important to 55+ single-family home buyers.

• The share of all 55+ buyers of newly built homes using a mortgage has increased significantly in the past six years.  However, for other 55+ communities, there was a decline from 54% in 2001 to 40% in 2007.

• Even though we would expect home value and home size to be related, this does not appear to be the case in 2001-2005.  The overall rapid price appreciation across homes of all sizes during this period appears to be driving these results.

Liz Miller, Just Call Liz for your Lake Havasu real estate needs

Have Banks Gone Too Far?

Have banks gone too far in tightening their hold on lending practices?  There was a real-head-scratcher in the LA Times last week written by David Lazarus, one of their most able real estate observers.

Here’s some of it:

“One reason we got into our current economic mess is because banks handed out home loans to pretty much anyone with a pulse, regardless of their ability to, you know, actually make mortgage payments.”

Banks have subsequently tightened their lending practices, which is a good thing.  But have they gone too far?

Glendora residents Angie Trujillo and Carl Heinzen think so.  They’re still trying to figure out why they got turned down for a refinancing of their mortgage.  Before we get any deeper into their story, you should know that Trujillo, 61, is no stranger to the world of banking.  She worked for Bank of America for nearly 40 years, rising from switchboard operator to assistant vice president.  Trujillo was shown the door in March, not long after BofA announced that it would be sacking as many as 35,000 employees over three years to cope with the recession.

Trujillo and Heinzen, who are married, applied for a refi several weeks before she lost her job at the bank.  Considering Trujillo’s long history with BofA and the fact that their loan was already with BofA, they figured the refi would still go through without any difficulty.  But in August, they learned it had been rejected.  The reason, according to the letter they received from the bank: “Income insufficient to support expenses.”

Apparently BofA decided not to take into consideration the $58,000 severance package Trujillo received from BofA along with her pink slip.  Or her $377,000 BofA pension.  Or her $156,000 in savings at BofA. Or the $10,000 she and her husband deposit at BofA monthly for rental properties they own and manage.  Not to mention the $450,000 value of their house, as appraised by BofA for their current BofA loan of $280,000.

Oh, and let’s not overlook that Heinzen’s FICO credit score was 809 at the time of their refi application and Trujillo’s was 764, placing them among the least-risky loan seekers in the country.

Kind of makes you wonder: If people like Heinzen and Trujillo can’t get a home loan, even for just a refi, who can?

Liz Miller, Just Call Liz for your Lake Havasu real estate needs

Will Extending the $8,000 Federal Tax Credit Influence You?

According to a Zillow survey, many prospective first-time home buyers say that extending the $8,000 federal tax credit will heavily influence their decision to buy a home before the end of 2010.  This would make up an additional 334,000 buyers between December 2009 and next year; 2010, if it is extended.

In the survey Zillow did, they queried adults who would qualify as first-time home buyers.  They asked them if their plans to buy a home before the end of 2010 would be influenced if the federal tax credit was extended.  18% said yes, it would be their primary influence, 25% said it would be a significant influence,  27% said it would have some influence on their home buying decision and 31 % said it wouldn’t have any influence on their decision at all.

In Zillow’s analysis of the current real estate market trends, it shows that, if the credit were extended and everyone took advantage of the full $8,000, there could be up to $14.86 billion dished out.  The suggested 334,000 additional homebuyers that could be seen if the credit is extended could mean the difference between a healthy annual increase in home sales for next year and a negative home sales year.

Not many will disagree that extending the tax credit will boost demand at the margin.  It can even help to make it easier to work down the high inventory levels the real estate market currently has of existing homes.  The $8,000 first-time buyer federal tax credit is going to expire on November 30, 2009, which is very close.  Those who qualify are buyers who do not currently own any property or have not owned any property for the past three years as a primary residence.  So, don’t miss out just in-case the credit is not extended.

Just Call Realtor® Liz Miller For All Your Lake Havasu City Real Estate Needs.

Those Who Have Chosen to Walk Away from Home Mortgages

A new study looks are those who have chosen to walk away from home mortgages, and it has a few surprises.

For example: Who is more likely to walk away from a house and a mortgage — a person with super-prime credit scores or someone with lower scores?

Research reported in the LA Times, drawn from 24 million individual credit files, has found that homeowners with high scores when they apply for a loan are 50% more likely to “strategically default” — abruptly and intentionally pull the plug and abandon the mortgage — compared with lower-scoring borrowers.

National credit bureau Experian teamed with consulting company Oliver Wyman to identify the characteristics and debt management behavior of the growing numbers of homeowners who bail out of their mortgages with none of the expected warning signs, such as nonpayments on other debts.

With foreclosures, delinquencies and loan losses at record levels, strategic defaults and walkaways are among the hottest subjects in residential real estate finance. Unlike in earlier academic studies, Experian and Wyman could tap into credit files over extended periods to identify patterns associated with strategic defaults.

Among researchers’ findings are these eye-openers:

* The number of strategic defaults is far beyond most industry estimates — 588,000 nationwide during 2008, more than double the total in 2007. They represented 18% of all serious delinquencies that extended for more than 60 days in last year’s fourth quarter.

* Strategic defaulters often go straight from perfect payment histories to no mortgage payments at all. This is in stark contrast with most financially distressed borrowers, who try to keep paying on their mortgage even after they’ve fallen behind on other accounts.

* Strategic defaults are heavily concentrated in negative-equity markets where home values zoomed during the boom and have cratered since 2006. In California last year, the number of strategic defaults was 68 times higher than it was in 2005. In Florida it was 46 times higher. In most other parts of the country, defaults were about nine times higher in 2008 than in 2005.

* Two-thirds of strategic defaulters have only one mortgage — the one they’re walking away from on their primary homes. Individuals who have mortgages on multiple houses also have a higher likelihood of strategic default, but researchers believe that many of these walkaways are from investment properties or second homes.

* People who default strategically and lose their houses appear to understand the consequences of what they’re doing. Piyush Tantia, an Oliver Wyman partner and a principal researcher on the study, said strategic defaulters “are clearly sophisticated,” based on the patterns of selective payments observable in their credit files. For example, they tend not to default on home equity lines of credit until after they bail out on their main mortgages, sometimes to draw down more cash on the equity line.

Strategic defaulters may know that their credit scores will be severely depressed by their mortgage abandonment, Tantia said, but they appear to look at it as a business decision: “Well, I’m $200,000 in the hole on my house, and yes, I’ll damage my credit,” he said of defaulters. But they see it as the most practical solution under the circumstances.

The Experian-Wyman study does not try to explore the ethical or legal aspects of mortgage walkaways. But it does suggest that lenders and loan servicers take steps to screen and identify strategic defaulters in advance and possibly avoid offering them loan modifications, since they’ll probably just re-default on them anyway.

Realtor Liz Miller – Lake Havasu City, Arizona Real Estate

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