Quick Tips to Prepare

Did You Know?

• The lender really does not want to take your house from you. 
• In half of the foreclosures, the home owner and lender don’t talk before the foreclosure.  Mail from the lender goes unopened. 
• Lenders are more flexible now than in the past.  They do want to talk with you.
• “Foreclosure Assistance” fraud is at an all time high – they prey upon homeowners in distress who want a quick answer to their problems.  Get a second opinion before signing anything!

There is nothing worse than doing nothing…

Take Action:

1.  Know Your Personal Business:  
Your Current Assets:  List  wages, other income, 401(k), savings

Are there other ways to increase your income?  Part time job, sell (NOT pawn) some possessions, take on a roommate?

Your Expenses:  List all expenses including credit card debt (account balances, interest rates, etc.), utilities, child care, transportation, health care, etc.

2.  Know your Mortgage (loan on the house): 
Does your mortgage payment include escrows for property taxes and home insurance?  Is there a pre-payment penalty?  When does the interest rate adjust and by how much? How much is the loan compared to the value of the property? (Do you have any equity?)

3.  Can you really AFFORD to stay in the house? 
If not, there are some legitimate options that may help you financially recover sooner without a foreclosure.  

4.  Call your mortgage company and ask for the Loss Mitigation department (not the Collections  department).
Ask if they will restructure the loan. Sometimes they won't talk with you until you miss a payment. Be prepared to document why you've missed payments and your current financial situation. Write down the dates and times of your calls and the name of the representative you speak with.

5.  If you live in Georgia, call The IMPACT! HomeOwnership Center at 678-808-4477 for more technical assistance.

                     Be patient, yet persistent!   You will get through this!

Many things have changed in the world of home buying in the last few months.  If you know someone who wants to buy a home, please share this with them.  The IMPACT! HomeOwnership Center provides home buyers with the up-to-date information they need to make wise choices and avoid scams and rip-offs that are commonplace today. 

How you buy your home is very important to your financial future. Learn about the three most important factors in homeownership and wealth creation:  how much you PAY for your home, how you FINANCE your home, and how much it costs to OPERATE your home.

A few things to keep in mind as you go house hunting this year:

 It is a “buyer’s market” but buyer beware.  Yes, there are more homes on the market – some due to foreclosure or financial distress of the owner.  Home builders and homeowners are competing with bank foreclosures and investors who are looking to sell.  Why “buyer beware”?  You cannot trust what people tell you.  Always verify with outside sources.  Insist on an impartial home inspection.  Look for comparable values from sources other than the listing agent.  Talk to neighbors on the street.

Unless you have a “buyer’s broker” agreement with your real estate professional, he or she legally looks after the best interest of the SELLER.  There is nothing dishonest here, but even if they show you many homes, unless you have a written agreement, they are bound to negotiate in the best interest of the seller.

Know what you can comfortably afford and don’t “buy up.”   Don’t rely on a lender to tell you how much house you can buy.  The lender calculations don’t include all your real monthly expenses (like gas for the car, child care, summer camp, utilities – glamorous real life expenses).  Your first house need not be your dream home.  You will get it if you plan well.

Pay for a home inspection by an inspector YOU select.  Attend the home inspection so the inspector can educate you about the home you are interested in.  You will learn about the current condition of the home and what type of repairs you should plan for over time.  Don’t rely on an inspection the seller offers to share with you.  If you decide NOT to purchase the home, the inspection cost will be far cheaper than committing to a home that isn’t right for you.

Borrower beware.  Don’t be tempted to buy the more expensive home because a loan officer says they can “get you in with no money down.”  The mortgage industry has changed significantly over the last year.  Many sub-prime lenders have gone out of business as the “exotic mortgages” have come home to roost.  “Exotic” is the nice way of referring to interest-only adjustable rate loans, Option ARMs (where you pay what you feel like paying each month and end up owing the lender more than the house is worth), and other loans that enabled people to purchase more home than they could really afford.  Lenders are becoming rational again, which will bring the loan amount you “qualify for” more in line with what you can actually afford.  What a concept!

The IMPACT! HomeOwnership Center offers a series of workshops and classes through our Home Investment Academy to help people build their wealth through home ownership.  We also have certified housing planners that can help you with credit and budgeting issues and review your documents to get that “2^nd opinion.” 

What You Need to Know Before Signing a Lease:

Many common problems between renters and landlords could be avoided with clear communication up front.  Don't assume anything.  Ask questions.  For example:

1.   What is included in the monthly rent?   When is it due?  When is it late?  What are the late fees?

2.   Are utilities included in the rent?   Garbage Pick-up?   Water/Sewer?    Electricity?   Gas?

3.   What is your policy on Pets?

4.   What deposits are required?   What is required to get the deposit(s) returned at the end of the lease?

5.   What is your policy on maintenance requests?   Who changes air filters?  Light bulbs?

6.   Is there a youth curfew on the property?

7.   Can we have a grill on the patio or deck?

8.   Drive through the property at different times of the day to get a feel for the activity in your new home community.  How is the lighting at night?  Are people loitering around?  

Tips before Move In:

1.  Take pictures of each room BEFORE you move in to document the condition of the flooring, walls, ceiling, appliances.   You should return the unit in the same or better condition when you move out so you can get your deposit returned.

2.   Ask what the utility bills usually run for a unit the size you are renting.   You need to calculate this in your monthly budget along wth your rent.

3.   Talk to some neighbors to see what they like about living there and what they have observed.  Is it a friendly place?  Do people look out for one another?

4.   Make sure you BUY RENTER'S INSURANCE.   This protects your belongings.  If there is a fire or water damage in your building, the landlord is not liable for the contents of your home.  You must insure yourself!   It is an affordable peace of mind and you cannot afford NOT to have renter's insurance!

The Fair Housing Act prohibits discrimination in housing because of:
Race or color
National Origin
Religion
Sex
Familial status
Handicap

What Housing is Covered?

The Fair Housing Act covers most housing.  In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a broker and housing operated by organizations and private clubs that limit occupancy to members.

What is Prohibited?

In the Sale and Rental of Housing:  No one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap:
·         Refuse to rent or sell housing
·         Refuse to negotiate for housing
·         Make housing unavailable
·         Deny a dwelling
·         Set different terms, conditions or privileges for sale or rental
          of a dwelling
·         Provide different housing services or facilities
·         Falsely deny that housing is available for inspection, sale or rental
·         For profit, persuade owners to sell or rent (blockbusting) or
·         Deny anyone access to or membership in a facility or service
          (such as a multiple listing service) related to the sale or rental
          of housing.

In Mortgage Lending:  No one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap:
·         Refuse to make a mortgage loan
·         Refuse to provide information regarding loans
·         Impose different terms or conditions on a loan
·         Discriminate in appraising property
·         Refuse to purchase a loan or
·         Set different terms or conditions for purchasing a loan

In Addition:  It is illegal for anyone to:
·         Threaten, coerce, intimidate or interfere with anyone exercising a
           fair housing right or assisting others who exercise that right

·         Advertise or make any statement that indicates a limitation or
          preference based on race, color, national origin, religion, sex,
          familial status or handicap.  This prohibition against discriminatory
          advertising applies to single-family and owner-occupied housing
          that is otherwise exempt from the Fair Housing Act.

If you feel you have been discriminated under the Fair Housing Act, please go here to complete a discrimination complaint form.

For more information see: 
Georgia Commission for Equal Opportunity 
U.S. Department of Housing and Urban Development's
Fair Housing Office

Housing Discrimination Complaints

Housing discrimination based on your race, color, national origin, religion, sex, family status, or disability is illegal by federal law. If you have been trying to buy or rent a home or apartment and you believe your rights have been violated, you can file a fair housing complaint.

There are several ways to file a complaint:
                  *  You can file a complaint right now, by using our online form.
                     (It is recommended that all pop-up blockers be turned off in
                     order to access this form. Otherwise, press the “Ctrl” button
                     as you click on the link)

                     * You can call 678-808-4478.

                     * You can print out a form here in English or Spanish complete
                         it and drop it or mail it to:

                                           The IMPACT! Group
                                           1845 Satellite Boulevard, Suite 100
                                           Duluth, Georgia 30097

                     * You can write us a letter with:

                                               *  Your name and address
                                               *  The name and address of the person your 
                                                    complain is about
                                               *  The address of the house or apartment you
                                                   were trying to rent or buy
                                               *  The date when this incident occurred
                                               *  A short description of what happened
                                               *  Then mail to the address above