Poconos Real Estate Blog

Open House in Wooddale, Saturday July 5, 1-3pm

Please join me at 44 Brush Drive, East Stroudsburg, PA 18301 this weekend for an Open House.

Open Saturday, 1 to 3 pm

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I Suppose You Expect Mail Delivery?

There are a few little things about the Pocono area that most of us locals have learned to accept as normal but may seem strange to newbies coming in.

One of these anomalies, for instance, involves having work done around your house. Most of us who live in these parts have accepted the fact that contractors around here don't need work. They don't call you back. They don't show up. They don't CARE if you tell all your friends that they didn't finish the job or do what they were supposed to do. They are a different breed, these Pocono Contractors. It is just a basic fact of life. Most of us have learned to adapt and by trial and error have found one contractor or handyman that is worth his weight in gold. (Yes, I have one but can't tell you his name, else I'd have to kill you) Some people have even resorted to bringing in help from their old neighborhood in New York or New Jersey, willing to pay the travel premium, give the dude free room, board and beer for the duration of the job, and/or wait for months 'til they can be scheduled in. Want to have some work done this summer? If you didn't line someone up around Thanksgiving last year, forget it.

Similarly, mail service up here is not like it is in other places. Sure, some homes in town or in a handful of other areas actually have a mailbox at the end of the driveway. And some actually have a normal looking mailing address like 1313 Mockingbird Lane. However, the likelihood that the house you are buying in the Poconos is thusly endowed is slim. MORE likely, you will end up with a mailing address like RR 5 Box 1234, or HC 88 Box 666, if mail is delivered to the house. MOST likely, you will end up with mail delivery at some location within your neighborhood with an address number not even closely related to the street address of the house you purchased.

Don't be alarmed, once you get used to it, you will actually receive your stuff if you follow these few simple Rules:

Rule # 1: If you buy a house in a community, your mailing address is not going to be the property address.

Learn this rule and learn it fast. Do not tell the utility company that your address is XXX SuchNSuch Lane, cuz it's not. Don't make up cute little change of address cards and mail them to all your friends before you move, because your housewarming gifts will arrive very late if at all. And please, don't tell the IRS to mail your refund check there either cuz it will be returned undeliverable. I know you want to get everything done and lined up before moving day, but you can't, because...

Rule #2: It is very likely that you won't get to know your mailing address until after closing.

Yes, this is very inconvenient but it will all work out, I promise. After you close on your new home you will go to the post office and show your closing documents as proof that you are entitled to a mail box. They will then assign you a number and tell you what your address will be. You do not get to pick your number, nor will it match your physical address. Heck, it won't even match the mailing address that the previous owner had.

Rule #3: Some of the folks helping you with your home purchase here in the Poconos may not know these rules.

Tell your attorney, the title company, your agent (if it's not me!), everyone, to read this article. Those folks who handle your closing are most important, though, because they will be the ones putting your mailing address on the deed to the property, which will then trigger the tax collector to update her records. So, let the closing agent know that you will call her/him with new mailing address. You don't even want to know what happens if you don't receive your real estate tax bills in a timely manner!

Rule #4: If you are getting a delivery from FedEx, UPS, the florist, etc, disregard Rules 1-3.

I know, it's confusing. But if you get deliveries from companies other than the United States Postal Service, use the property address. If you are ordering stuff online or from catalogs, carefully review their shipping procedures so you know which address to give them. There is nothing more heartbreaking than receiving that hot new Victoria's Secret bikini after the first frost.

If you are unsure about the mail situation on the property you are buying, contact the post office responsible for the zip code your new place is located in. They may be able to help you out. Or not. Many of the post offices have hired retired Pocono Contractors and serving the customer is not exactly high on the priority list.

(If you are reading this and happen to work in the post office where I get my mail, I don't mean you ;) xo)

Edit: I happened upon this interesting series of photos done by a way-kewl real estate agent in Florida - check 'em out.

Home in the Wooddale Area of East Stroudsburg School District

Video: Life in Penn Estates

Minimizing Risk & Reducing Stress While Buying a Foreclosure in the Poconos

Bank foreclosures are old hat for us here in the Poconos. Long before the recent rash of foreclosures experienced across the country, we have had a steady supply. (The reasons for this are a whole 'nother article.) Fortunately for our market here, we have had a steady supply of investors and bargain-hunters coming in to the area, too, so these homes have always sold at a decent pace.

So I do have some experience in helping buyers navigate through the process of buying a foreclosure as an investment or as their home. Furthermore, my first house was a foreclosure sale, so I have first-hand knowledge of the experience from the side of a buyer. To summarize, yes, a root canal is almost as fun as buying a foreclosed home, but once the immediate effects wear off, the reward is usually pain-free.

(As clarification, the term foreclosure in this article refers to bank-owned listings being sold through the MLS - other areas call these REO or Real Estate Owned properties)

Buying a bank foreclosure is not for the faint-hearted. For first-time buyers, the process of buying a home is, under the best of situations, stressful and confusing. But even for those who have some experience with previous home purchases, buying a bank foreclosure can be scary.

You are dealing with properties which are usually in need of repair, have no Seller Disclosure or representation with regard to condition and maintenance history, and have been abandoned. Do not discount this last fact, the idea of abandonment, as there is a subconscious effect from this fact for many of us. Why would someone let this house go? What's wrong with it? What did they know that I don't know? No one wants to feel like they are picking through someone else's trash!

But once a purchaser works through all of these emotions, weighs the market facts and finally comes to the realization that there is a huge opportunity to maximize equity by buying a foreclosed property, good decisions can begin to be made. Once a buyer firms up in their mind what kind of repairs they are willing to undertake and shops for and locates the appropriate property, they can approach a transaction armed with the information they need, minimizing their risks and anticipating & addressing possible stress points along the way.

So, what's the big deal? How is buying a bank foreclosure different from buying a property from a 'regular' seller?

THE DREADED BANK ADDENDUM
The banks have their own rules when it comes to selling property. While they do have to comply with real estate law as it exists in the particular state they are selling in, they have gone through this process hundreds or thousands of times and these experiences have caused them to streamline their process. They have corporate attorneys who analyze the risks the banks expose themselves to by virtue of being a seller in a highly regulated industry, and oftentimes have been involved in lawsuits, justified or not. In response to this, most of these banks have come up with a lengthy list of requirements and policies which they spell out on the dreaded Bank Addendum. This Addendum is <usually> a requirement of any offer they entertain, is non-negotiable, and can seem very one-sided and unfair to a purchaser. But the banks are well versed in CYA, so learn about the requirements and cover your own appropriately! Here are some of the more commonly questioned clauses included in these addenda. A discussion with your real estate attorney about their implications may be in order:

• Per Diem Penalty: A penalty for not closing when you say you will. Sure, the bank will extend the contract for you but will often charge you around $100 per day. Remember, time is money to the bank!
• Inspections: Yes, you can inspect. Usually the addendum states that it is for your information only and that they will not make any repairs. The buyer usually retains the right to cancel the contract if there are problems they aren't able to accept. Many times the purchaser is responsible for dewinterizing the property and turning on the utilities for the inspection, but not always. Also, the bank usually requires a fast turn-around on the inspection, often mandating that it be done in as little as 7 days from the time the bank accepts the offer. This is sometimes tricky for an out-of-town purchaser to pull off, but it is not impossible.
• Title Work: Sometimes the bank will pay for the title work on behalf of the buyer. This can be a big savings for a purchaser and, as long as your attorney reviews the policy, should be welcomed. However, be aware that title issues are not uncommon in foreclosure transactions. If the foreclosure proceeding was done sloppily, it will sometimes create a cloud on the title that can take some time to clear. Sometimes it is a simple fix, but other times, like when a Quiet Title Action is necessary, it can delay a closing for months. In these situations a buyer has the option of waiting or cancelling the sale.

Of course, every bank has their own Addendum and the document can vary in length from one page to eight pages or more. One other little tidbit of info: most banks provide the addendum up front so you can review it before making your offer, but sometimes the bank will provide the addendum as part of the counter-offer. Having an idea of what to expect is especially useful in this scenario.

MAKING AN OFFER
Just like with any other listing, an offer on a bank foreclosure is done in writing and utilizes a full Agreement of Sale (AOS). I use the standard Pennsylvania Association of REALTORS® form which is very thorough yet easy to understand. Of course, the Addenda described above would be attached to this form, and if there are conflicting clauses on the AOS and the Addendum, the Addendum takes precedence, unless State Law requires otherwise. Having an attorney help you navigate these nuances is important.

Normal contingencies like mortgage financing and inspections are acceptable to the banks. However, a sale contingent upon the sale of another property usually is not. They prefer to have the contract as clean and unencumbered as possible, thus reducing the risk of the transaction failing to close.

The bank will want to see a pre-approval letter before accepting an offer contingent on financing. Because pre-approval letters are not always a guarantee that a borrower is qualified, they sometimes require the prospective purchaser to fill out a Buyer's Financial Information form in lieu of or in addition to the pre-approval. This is to satisfy themselves that you are, indeed, a good prospect for the mortgage you are applying for. Again, risk reduction in action.

If you are paying cash for the purchase, or even if you are financing the purchase, expect to be required to provide 'proof of funds.' This can be in the form of a bank statement or a letter from your accountant. The bank needs to know that you have enough money to complete the transaction.

GETTING YOUR OFFER ACCEPTED
Keep in mind that the bank is evaluating your offer based on money, timing and risk so, besides carefully evaluating the price you are willing to pay, think hard about the other terms of your offer. The bank wants the transaction to close as soon as possible in order to minimize their carrying costs, and usually require a closing date within 30 days of acceptance. If you want to sweeten the deal, make it two weeks if at all possible. And keep the contingencies to a minimum. No 'Sale is contingent upon seller having the chimney cleaned' or the like. Simple mortgage contingencies and inspection contingencies are expected.

Of course you need to protect yourself and there may be unusual circumstances that require an odd contingency, but try to keep it as simple and as clean as possible.

Another caveat: While banks do value the cost of time and risk, they also have balance sheets to worry about. So keep in mind that your offer is mostly about the price. Cash offers are, very often, favored over those involving financing, but they don't always translate in to huge reductions in price. Buyers who need to get mortgages will often make their offer a little more desirable by raising the sale price. A few thousand dollars more in their offer translates in to small monthly payments for them, while giving the bank the needed plus signs in their ledgers.

Evaluate your position keeping in mind that it is all dollars and cents to the bank.

THE BANK'S COUNTER-OFFER
It is very likely that, if you like a property enough to make an offer on it, other Buyers do too. Even in the slow-ish market we are experiencing right now, multiple offers are very common on bank-owned homes.

When the bank gets more than one offer in on a property, they will usually counter-offer all of the prospective purchasers with a request for their Highest & Best offers.

This means that your offer was not accepted and that they are giving you an opportunity to revise it if you wish. They are letting you know that they have another (or multiple) offer on the table, but will not disclose the amount or terms of competing bids. They want to get the most for the house that they can so this is often the way they go about it. You do not get to know what the other offers are. At this point your choices are: 1-leave your offer the same 2-change your offer 3-withdraw your offer.

Once you go back to the bank with your highest and best offer, they will make a decision. This decision could include accepting one of the offers, negotiating with one or more of the potential buyers, or rejecting all of them. They are not under any obligation to accept anything, and are free to accept any other offers that come in in the meantime.

KNOW WHAT YOU WANT & GET IT!
Do not think that because the real estate market is a bit slower than normal that you are going to steal a foreclosure listing. Banks are well prepared to compete in this market and know what many sellers do not: that pricing a property well will generate offers quickly, in any market. They are not in business to own real estate and do what it takes to sell quickly and for top dollar, which is to price the listings slightly or drastically under market value to generate lots of interest and competition between buyers. This is why Buyers often find themselves in this 'highest and best' scenario - the banks plan it that way!

Moral of the story? Don't mess around. If you want the house and see the value in it, chances are someone else does too. Ask your agent for advice on the value of the property...as-is and as-fixed...to determine how high you should go. And, although the average foreclosure has sold for 96% of the asking price in 89 days this year**, these situations often generate fairly quick, full-price-or-higher sales. If the property is not worth that to you, fine. But don't lose a property you love because you think you SHOULD be able to negotiate it down.

This is not to say, of course, that every foreclosure listing is one you should fight for, but once you and your agent see a few homes in the neighborhood and analyze comparable sales, you will know good value when you see it. If you have analyzed the market properly, you should feel comfortable making an aggressive offer that will win you the sale.

For expert Buyer Representation in your foreclosure purchase, contact me today via email at info@lisasanderson.com or toll free phone 888.794.5589 !

**Information gathered from the Pocono Mountains Association of REALTORS MLS system on 5/12/08.

Go Ahead, Show Off!

29 Sunbury Drive (Penn Estates) Stroudsburg, PA 18360

They say living well is the best revenge. And if vengence isn't your thing, flaunt it anyway! This home is fastidiously maintained, stylishly decorated and perfect for the choosy host.

Invite your friends and family over for some fun: a classy dinner party, a casual gathering on the porch, or some football in the family room...whatever the occasion, your home will wow 'em.

If details are your thing, check out the california-closeted master bedroom, wood floors & stone fireplace in the living room, upgraded lighting, room darkening shades on the bedroom skylights, and more. These owners pay attention to the finer points!

The best news is, all of this style is affordable (only $259,500!) and in the most convenient spot in the Poconos...minutes to I80, all of the new stores & attractions along Route 611, downtown Stroudsburg, East 'burg, and all of the schools.

Situated on .42 acres on a lightly travelled road, the level property has been manicured to provide exceptionally nice yard areas front and back. The lot is lined with white pines which provides a nice privacy barrier from the street. Paved driveway, cedar-front and an ample utility shed recently added.

It is not often that a home of this caliber comes on the market, so take this opportunity to own a most special specimen in a classic contemporary design.

Be sure to click on the link at the beginning of this post for more beautiful photos, or check out the virtual tour:

Buying a Penn Estates Home - FAQ #3 Safety, Security & Quality of Life

It may come as a surprise to some of my neighbors that not everyone has the same high opinion of Penn Estates as we do. Let's face it: A quick search of the internet for information about Penn Estates, as well as about life in the Poconos in general, reveals some not-so-flattering accounts of life here. As a matter of fact, I will admit to being a bit distressed at the one-sided information I found when researching what potential buyers might come across when they search certain topics. So, lest everyone out there get the wrong idea about us, let me try to balance the perspective a bit and tell you what I know. As a Mom, as a community volunteer & self-appointed advocate, a homeowner, and as a REALTOR(r), I feel I have to.

Penn Estates is home to over 6,000 people and compares in size to a small town. There are twenty-six miles of roads that serve 1700 properties. We contract with a private security firm to provide us with staff and services to manage the 24/7 safety needs of the community: guest registration & access control, patrols, traffic monitoring, emergency assistance, complaints, etc.

We are served by regional police departments, Stroud and Pocono Mountain, which cover a huge area of our county and are under-funded and under-staffed, just like most police departments that serve high-growth areas of the country. They rely heavily on and cooperate greatly with our private force to serve Penn Estates along with all of the other communities and towns in the areas they serve, and they are excellent in their response to 911 calls and crime investigation.

So my answer to the question "Is the community safe?" is 'Yes.' Is it perfect and crime-free? Of course not. Am I comfortable raising my teenage daughters here? Absolutely.

However, I think a better question is, what is Penn Estates, or any other area one might considering buying a home in, doing to address growth problems related to crime? How are these neighborhoods countering the negative effects of the continued population explosion our area is experiencing? IMHO, this is very important because as growth continues (which it will because it is a great place to live!), crime inevitably will too.

"What are areas doing to prepare themselves for that?" is a question that potential homebuyers should be asking when they research places to live.

Here in Penn Estates, we have been fortunate to have the support, guidance and cooperation of the Stroud Regional Police Department in establishing a model Neighborhood Watch Program, which we hope will be an example that the 'Burgs (the Boroughs of Stroudsburg and East Stroudsburg) and other communities in the Poconos follow. We have already held the training session for the first group of volunteers and look forward to the grand opening of 'watch central' in the Community Center building at the main amenity complex (stay tuned for more info on that).

The areas that acknowledge the inevitability of issues and address potential issues proactively are the areas that will keep crime rates low and continue to grow property values.

Yes, the Poconos has its share of troubles, as would be expected in an area which is expanding so quickly. Undoubtedly, when you search for information on the area in general or particular communities, news articles and reports of specific crimes will come up. Robberies, grafitti, gangs, domestic violence, arson...no doubt you have come across stories about any of these things occurring in different parts of Monroe County...Brodheadsville, Saylorsburg, Bushkill, Effort, downtown Stroudsburg and, yes, Penn Estates have been affected at one time or another.

An unfortunate fact about bad news is, it always makes headlines...don't even get me started on THAT, as I could go on and on about the unbalanced reporting and fact-less accounts that make it to print.

But remember that the good things that happen every single day in neighborhoods and communities across Monroe County don't make headlines. And ask yourself, is paying attention to headlines going to give you a clear picture of what life is like here?

It is difficult to know what information to believe and whose stories are accurate. I know that even my claims will be scrutinized and perhaps even written off as a sales pitch. To be sure, no matter who you ask, they will say that THEIR neighborhood is the best =) Everyone has an opinion and bad news is plentiful, especially in someone ELSE's neighborhood!!

So my advice to you is, do your homework and seek out a balance in sources and in perspectives. Then, make the decisions that are best for you and your family.  Who knows, buying a home in Penn Estates or other areas of the Poconos just might be the best move you ever made!

• For specific questions related to crime in Penn Estates, feel free to email me, contact the Stroud Area Regional Police Department or the Pocono Mountain P.D. For information on State Police and other police departments and private forces in Monroe County, visit the Monroe County Control Center site.
  

• 2007 Crime Rates in the Monroe County Poconos This link has crime rates broken down by type of crime and jurisdiction. Penn Estates is located mostly in Stroud Regional, with a small portion of the community being part of Pocono Township.

Buying in the Poconos - Real Estate Links

• Communities & Developments Not all areas are link-able. Email me for info on specific areas you are looking at.
• Is the Time Right to Invest in Real Estate? Chicken Little vs. PollyAnna
• Are you being ripped off by your mortgage lender? Read: The Good Faith Estimate (part1)
• Pocono Mountains Maps & Transportation Info  is a good starting point for those thinking of commuting from Monroe County. Also check out my Transportation Page.
• Looking for a local real estate agent? Be sure to ask for references!

The Vacation Home as an Investment Strategy

The Poconos is a unique area for many reasons but, fortunately for those of us who buy, sell, own, and make our living from real estate, property remains uniquely in demand despite major market meltdowns elsewhere. This is not to say that things haven't slowed down this past year, but I consider this a mere blip in the overall picture of a vibrant real estate market.

There are three key factors which feed the market here: 1) The proximity to New York and New Jersey via I 80 and I 78 attracts commuters looking for a better, more affordable quality of life; 2) The population growth of the area, especially Monroe County, has beckoned to investors from far and wide bringing lots of commercial development; and 3) The time-honored tradition of the Poconos as a year-round resort area, recently rejuvenated by new attractions like Great Wolf Lodge and the Mount Airy Casino.

It is this last sector of the market that my favorite mortgage broker has chosen to address in his latest guest post. ~L

From the Desk of:

Andrew Williams

President

Abacus Regional Mortgage

It may not have occurred to the regular Pocono resort visitor that their yearly vacations here could be making them money, or to the real estate investor that a vacation home can be a lucrative way to round out their portfolio.

Because the Poconos is classified as a resort area, the purchase of a vacation home or second home and renting it out for weekend and weekly rentals has more than just the obvious financial benefits. Yes, cash flow is maximized by structuring your offering as a short term rental rather than  as a long term (monthly or yearly) lease, but there are two major advantages to purchasing your investment as a second home as opposed to the more common investment property scenario:

• The purchaser qualifies for a mortgage as a 2nd-home buyer rather than as an investor, allowing her to qualify for a better interest rate. Investor rates are normally 1/2% higher or more.
• If the investor spends two weeks but only two weeks in the property annually, he gains numerous financial advantages. The two week occupancy allows the owner to write off all the expenses on their Schedule E, which takes advantage of deductions like depreciation and mortgage interest in order to save on the investor’s income taxes. If the property shows a loss, and the investor earns less than $ 150,000 in income, they can write it off as a loss on their income tax returns.

DISCLAIMER: I am not an accountant and this is only my understanding of the tax advantages. Always seek professional advice from an accountant to fully weigh the advantages or disadvantages of this kind of scenario.

The ability to treat the property as a rental for income and tax purposes, while still getting the best available interest rate to finance the purchase, makes buying a vacation home in the Poconos a no-brainer. The 2nd home market in any of the many amenity communities in the Poconos is perfect for weekly rentals, and you can have your very own getaway spot reserved for your favorite weeks of the year.

For information on the best rates and programs available for your vacation home purchase, please call me at 610.837.1600. I will provide a complimentary consultation and mortgage advice you can count on!

She's a Brick....House

Anyone else luv that funky song?

Check out this well-built brick....ranch.

On a beautiful tree-lined lot, this Stroudsburg home is comfortable and impeccably cared for. Great room with vaulted & beamed ceiling, fireplace, plush carpeting & lots of light is large enough to accomodate a variety of furniture arrangements. Dining & kitchen areas appointed w/knotty pine & ceramic tile-very homey! Nicely planned master suite. Gorgeous lot with mature trees, two patios and a big storage barn.

All of this is just minutes to the Stroud Mall and all of the new shopping centers on Route 611, the Eastern Monroe Public Library, Stroudsburg's charming downtown area, and the Stroudsburg Junior High, Intermediate and Middle School campus on Chipperfield Drive.

701 Hammond Lane, Stroudsburg, PA  18360

Price: $ 278,320
MLS #: 07-13175
Stand Out Features:

• Oil-fired Radiant Floor Heat
• Central Air Conditioning
• Rolling & Tree-Lined .80 Acre Property
• No Development/No Dues

ZipSkinny info for 18360

Need more info or an appointment to see it? EMAIL ME

Scenic Sections C1-C4: Newer Penn Estates Homes

Sections C1 through C4 can be considered a neighborhood within a neighborhood as they are Penn Estates' newest sections and there is a distinctively different atmosphere there. They are, of course, part of the community and the residents there are welcomed as neighbors just as heartily as neighbors in other sections, but the properties are larger and less wooded, and there is less of the eclectic mix of home styles found throughout the rest of the Community (with the exception of B1, which I will cover another time). The homes in this area trend toward the vinyl-sided two-stories and bi-levels and the lots trend toward manicured rather than natural landscaping.

Featured Listing:
378 Blue Beech Drive East Stroudsburg PA 18301

MLS #: 08-2200

Stand-Out Features:

• Customized 2nd Story Floor Plan
• Designer Flooring & Window Treatments
• Oil Heat & Central Air Conditioning
• 1 Block to Lower Twin Lake &
• slightly longer walk to the Highland Lake Beachfront

Price:
$288,500

Similar listings here.

For an updated list or a customized search for homes in any area of the Poconos, email me.

Finding the Perfect Home ... or Husband

Face it, finding the perfect house is tough. Even with all of the choices out there today, it can be hard to find the one that is 'just right.' My famous line to buyers is this: Finding the perfect house is kind of like a woman looking for the perfect husband...if you could take a little piece of each one and put it all together then, voila, perfection.

But let's be realistic, honey...that ain't happenin' !

So what is today's cultivated woman to do? Lower her standards? Never!

My advice is, figure out what faults you can live with and then TRAIN HIM.  ( =) c'mon guys, stay with me here)

Finding the perfect house can be approached in the same way. Find that one that has the best combination of must-have features and lack of fatal flaws, and then fix it to your liking.

Better still, save your cash and finance the alterations!

Enter the FHA 203(k) Streamlined Mortgage.

This  program has been around for a couple of years but has been very under-utilized. Recent changes in the loan limits, guidelines and processes for FHA loans in general have made it a much more desirable program, especially in today's lending environment. What makes the Streamlined(k) mortgage so special is its ability to facilitate 'simple' repairs or improvements to a home...up to $35,000 worth.

Eligible improvements include some of the most common home repair issues we encounter here in the Poconos like:

•  Repair/Replacement of roofs, gutters and downspouts
•  Repair/Replacement of flooring, kitchens & appliances
•  Painting, both exterior and interior
• Septic system and/or well repair or replacement
•  Repair/replace/add exterior decks
•   Basement finishing and remodeling, which does not involve structural repairs

Other improvements which could be financed include:

• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Weatherization, including storm windows and doors, insulation, weather stripping, etc
•   Accessibility improvements for persons with disabilities
•   Lead-based paint stabilization or abatement of lead-based paint hazards

Basically the rule of thumb is, as long as there are no structural changes or proposals that require engineering or architect reports, they are probably finance-able under this program. Simply providing bids, estimates or projected invoices is all the additional documentation required for this loan. An appraisal will be done to ensure the as-fixed value of the property, and the program allows up to six months after closing to complete the work.

There ya have it, the solution to your house-hunting dilemma...it's easier than teaching your husband to put his socks in to the hamper!

For more information on the FHA Streamlined(k), please contact Bill Cullen at Hometown Security Mortgage (570)424.1289.

Is Now a Good Time to Buy a House in the Poconos?

Some may doubt my answer. It is, after all, given by a real estate agent whose income arguably depends upon her ALWAYS responding with a resounding 'YES!' when asked this question.

However, I have not earned the status of Trusted Agent by so many of my clients and neighbors by giving out self-serving advice. So, even though my answer is, indeed, 'yes,' please keep reading as you just might a) learn something about the real estate market, and/or b) find that even an evil, money-hungry agent can tell it like it is.

Either way, I've achieved my goal :)

So, yes, now is a good time to buy a house in the Poconos. And here is why:

1. Pennsylvania is not one of the 5 states driving the media's hysterical headlines about the housing crisis, the subprime mess or whatever other base topics threatening our confidence in real estate investment anywhere. Simply put, real estate markets are local and national news coverage must be ignored in favor of facts, statistics and anecdotal evidence from your target area. PA has never been and is not currently a volatile market.
2. The big-money investors are still investing here. A drive around Monroe County will reveal an incredible amount of money being spent on development and commercial projects all over the place. This kind of investing does not get done without feasibility studies, projections, etc. So what do they know that you don't know? That this is a desirable area and that the demand-well is not drying up.
3. There are plenty of choices out there. Hey, it is springtime so listing inventory is up. Better still, the 'passive-sellers' (those non-urgent owners who listed while the market was hot and were testing the market) are just about weeded out as contracts expire and these dreamers and their agents come back to reality. So you should now be seeing more homes available at the right prices.
4. Dan Green says, "Stop asking your real estate agent if now is a good time to buy." and offers some advice from the mortgage advisor's point of view that makes a lot of sense and has nothing to do with local real estate market conditions. The changing mortgage lending environment should be enough to encourage prospective home buyers to finally take the plunge...this year, before the pendulum swings completely the other way and mortgages get increasingly trickier to obtain (in other words, lenders' CYA policies become buyers' PIA!).

And if you are still skeptical...scared...worried or whatever, check out this article which explains the psychology of a real estate market and how one should evaluate the one that they are in.

Finally, if you have questions or need some information, just email me...I promise I will respond quickly!

All-New Penn Estates Community Website

Penn Estates Property Owners' Association just rolled out their new community website. It is very pretty & functional and includes A TON of information - photos, events calendar, etc.

Check it out HERE and see all the great things we are up to and why we think it is a great place to live!

~L

PS: And now that you are convinced, check out the wide variety of homes and lots available for sale HERE :)

FHA Loan Limits Increased

This is good news for homeowners who are in trouble because of an adjusting ARM or other sub-prime mortgage, and could help them avoid foreclosure.

It is also a boon to many home buyers who now have a larger selection of homes because of the higher loan limits.

FHA is an affordable alternative for those borrowers who do not qualify for regular conventional programs, without exposing them to the risks involved in the creative financing that created the problems we hear so much about these days.

Here in Monroe County, the limit for a single family home is raised to $271,050, well above the average sale price here. In Carbon, Northampton & Lehigh, the limit is $402,500, and in Pike County, $729,750. There are higher loan limits available for multi-unit properties.

These new loan limits expire at the end of 2008 so there is some incentive for owners and potential buyers to complete their transactions this year as the limits could revert to the 'old' limits of $200,160 in Monroe County, $305,666 in Carbon, Northampton & Lehigh, and $362,790 in Pike.

Need a recommendation for a local FHA loan expert? Click here.
For more info on the changes, read the HUD announcement.
For info on FHA loan limits in other areas, search here.

Do I Need To Get A Survey?

From the Desk of:
Richard A Hetzel
Architect (NY) & Home Designer (PA)

Often, home buyers ask “do I need a property survey“? and they get various advice. Frequently, it is decided to use an existing survey, thus apparently saving the cost of a new one. If you look at a survey map, it will probably have a note saying “Certified to John and Mary Smith to be correct and accurate”, the Smiths being previous owners of the property, and perhaps the sellers. That statement gives the Smiths some recourse against the surveyor, should a property issue arise in the future. 

When Fred and Norma Jones buy the property from the Smiths, that certification is null and void, and “let the buyer beware” becomes the governing factor. What happens if it turns out that there is an error somewhere in the survey which affects the property size or shape? The answer is that the Joneses are stuck with no recourse, unless they can claim and prove fraud.

What does a surveyor do?

A surveyor will draw what is spelled out in the “metes and bounds” description of the property contained in a deed, a verbal representation of the property boundaries. If you do have a survey map, you should be able to follow the description on the survey. Metes and bounds usually consist of bearings and distances. The bearing is an angle, measured from an arbitrary north, expressed in degrees, minutes and seconds: N 15° 45’ 30” E means “face north, then turn 15 degrees 45 minutes 30 seconds toward the east”. That establishes a direction. The bearing is followed by a distance, such as 155.67 feet, so now your instructions are to turn at the angle given, and proceed 155 and 67/100ths feet. The description may now say “to a point”, or “to an iron pipe”, or to some other property marker. 

When you “arrive” there, the deed description will give you the next instruction, and will keep doing so until you arrive back at “the point or place of beginning”. If you arrive at the exact point of beginning, the description is said to “close”, meaning it describes a geometric shape which has no gaps in its boundaries. A surveyor will make certain that the property boundaries close within a certain very small tolerance. The smaller the property, the smaller that tolerance will be.

What can go wrong?

In one community in the Poconos, almost no one owns what they think they own. Their lots are delineated on subdivision maps filed with the county, but along the way people built houses and driveways and cleared land and, in doing so, established possession of a certain piece of land. This may or may not coincide with the boundaries shown on the subdivision map…unfortunately it often does not. Now what happens? 

If the buyers had retained the services of a land surveyor, the map he produced might have shown two completely different sets of boundaries. One set would coincide with the subdivision map and perhaps also the deed to the property. The other set of boundaries will be marked “as in possession”, and will be based on what land the owner actually appears to possess.

It is not the surveyor’s job to decide which are the proper boundaries, but only to show on a map the boundaries which he found in the field, and in his research into land ownership records, such as deeds and subdivision maps. The differences in boundaries are left to be settled between neighbors, and possibly in court. 

Why does any of this matter? Well, suppose the buyer is planning to add an attached garage to one side of the house, thinking there is just enough room for it between the house and the setback line dictated by local zoning law. Now he begins the construction, and his neighbor claims the garage will be too close to his property line. If there had been no survey, probably both parties would retain surveyors to determine the location of the property line. Let’s say it turns out that the neighbor is correct…now we have a problem. 

Money well spent!

And that’s why it pays to have a survey done and certified to you when you buy property. If there is a problem, it will arise before the sale is finalized, and can be resolved before the closing. Also, if you think you are buying an acre, the surveyor will determine the boundaries and calculate the exact area, and you will know that the acre actually exists. Sometimes, a considerable difference in the area of the property can affect the price. 

Yes, a survey costs money, but it can save horrible headaches later on. Most buyers are making the single biggest investment they will ever make in their lives. Why not be sure that what you are investing in actually exists?

Buying a Penn Estates Home: FAQ#2 - Rules & Regulations

Funny story:  Last week I showed a home here in my community to an English couple...the English part is relevant to you picturing the dry, straight-faced sense of humor the English possess and how it plays here.  Anyway, the gentleman quite seriously looks at me and asks, when I offered to answer any questions they might have about the community, "Are the members of the homeowners' Board here a bunch of fascist pigs?" ^^ Took me a second to gather my wits before I replied, "Well, as President of the Board I can tell you that, while some may say yes, I must deny it."  Without missing a beat, the client drops down on one knee, grabs my hand and kisses it as if I were royalty.  (I could get used to that!! lol) I hadn't before then, you see, mentioned my involvement here in Penn Estates, so he was as taken by surprise by my answer as I was by his question, and I suppose he felt the need for damage control since he might become a neighbor!  We all had a nice chuckle and I then seriously explained the Rules as such:

We do have a lengthy document outlining the regulations of the community but we like to think they are common-sense, good neighbor kind of rules.  Painting your house pink, destroying the natural landscape without a permitted plan, being excessively noisy, not controlling your pets....all these things are addressed in our Rules and are things that protect everyone and their home values.  I don't consider us to be as strict as some communities I've heard of, especially in New Jersey, but there is no denying the existence of prohibitions.

At this point the client explains the townhouse development where they currently live is extremely difficult to deal with, hence the fascist pig question.  I think I was able to put his mind at ease.

What I did not say that is worth mentioning here is that a buyer of a property in a Planned Community (which is what Penn Estates is) in Pennsylvania is legally entitled to copies of all of the governing documents of the Community, along with other things such as insurance certificates, financial statements, etc, explaining everything a potential homeowner should know about the Association they are planning on joining.  This collection of information, referred to as the Certificate of Resale, is provided at some point before the closing of the real estate transaction.  Personally, I prefer potential buyers to have a pretty good idea of what they are in for before they even go to contract, so I usually direct them to the Community Documents link on Penn Estates' website.

Please feel free to share your thoughts and/or questions by clicking on the 'comment' button immediately following this article.

Think you have good credit? Better think again.

What has previously been thought of as a decent credit score is about to change.  At least from a mortgage application perspective.  I've asked PREB (Poconos Real Estate Blog) Guest Author, Andy Williams, to explain the details.

The days of unethical sales practices by some of the less-reputable mortgage representatives are numbered as the home financing market gets another dose of reality. Practices such as less than full disclosure about the cost of loans through the hiding of fees and rate manipulation have been very common in the past.  Hopefully this most recent change will make this 'sales tactic' much harder to pull off and level the playing field a bit. Consumers should find it easier to compare apples to apples and spot the rotten ones more easily and earlier on in the process.  This way they can direct their business back toward the good guys like Andy where it belongs. - L


From the Desk of:

Andrew Williams

President

Abacus Regional Mortgage

NEW FANNIE MAE LOAN-LEVEL PRICING

All Fannie Mae lenders will be changing to tiered pricing.  Some have already changed and others will follow by the 2nd quarter of 2008.  The tiered pricing effects borrowers with credit scores below 680.  The pricing refers to the points charged by a lender. If a borrower has a score lower than 680, the pricing will be roughly as follows:

< 620         +2.0 points
620-660      +1.75 points
661-679      + .75 points

Remember, 1 point equals 1% of the mortgage amount, so on a $200,000 mortgage for a borrower with a credit score of 650, the loan could cost $3,500 more.

If the borrower doesn't have the money to pay the points, they can opt to pay a higher interest rate to absorb the cost of the points.  The cost of .5 in price equates to roughly .125% in interest rate.  For example, if they score a 619, the 2.0 pt. add-on may be absorbed into the interest rate by adding .5% to the interest rate.  If the going rate is 6.25%, adding .5% would increase the rate to 6.75%.

This may only effect the Fannie Mae lenders, with the local banks still not charging any sort of surcharges for credit scores lower than 680.  We will have to wait and see how this all plays out.

Now more than ever it is important to choose your mortgage broker very carefully.  I am proud to offer proven market expertise and I am dedicated to helping you determine what loan is right for you. Call me for the straight answers. - Andy

Photos, MLS Listings & More: Arrowhead Lake Community

Whether you are looking for the lakefront home of your dreams, a little weekend getaway place, or a piece of property to invest in for a future or immediate build, Arrowhead Lake may be a good choice for you.  I am happy to provide you with automated MLS listings of houses or properties in Arrowhead or any other Pocono community-just send me an email with your wish-list and I will set it up!  You will receive an email each day a new property that meets your needs becomes available, keeping you constantly updated on what is on the market.  What better way to keep an eye on prices and inventory levels?  These reports are not the bare-bones ones that you get on other sites either-they contain the full property specifications one needs to properly evaluate all the choices.  And they are available only from an area real estate specialist like me!!

Pocono Lake, PA: The Re-Emerging Destination

I am seeing renewed interest in vacation homes in the area, I guess because of the recent approval of a slot machine license in the county.  Funny, with the slight downturn in the number of sales overall, I am working with quite a few second home buyers right now.  And Pocono Lake is a perfect location for those looking for a getaway that is convenient to skiing, golfing, Pocono Raceway, and yes, the new Mount Airy Casino.

If you are looking for something other than your run-of-the-mill lake community home, let me recommend Wagner Forest.  This location is ideal for those who appreciate the natural beauty of the woods over the man-made amenties found in other areas.  Wagner Forest does have a small lake but it is part of the overall environmental preservation plan of the area.  The lots are very large, usually a couple of acres or more, and the forest is thick and abundant with flora and fauna.  This is the ideal place to escape the everyday hustle and bustle, but still be able to access the more commercialized fun available in any direction you go.

1211 Songbird Court is a perfect example of a home you will find in this community.  What makes it so special, though, is its tucked away location which abuts a very large tract of forest preserve.  The home is enveloped by 3.4 acres of natural surroundings and is every  bit the peaceful, feel-good place one could ever desire.  Imagine yourself sitting on the deck counting the bird calls or preparing for your nightly campfire.       

Buying a Penn Estates Home: FAQ #1 - Where?

Penn Estates is a big place and there are likely to be a variety of choices available to you when you are shopping for a home there.  So how do you start?  What do you need to know?  What questions should you be asking? 

For my first tip on this subject, I am going to resort to cliche....location, location, location.  The first thing you should do is get to know the neighborhood.  Find out where the pools are, the lakes, the store, the administration office, the mailboxes, etc.  Make sure you know where the two entrances to the community are and what you will find when you exit from either of them.  Are the schools accessible out the front gate on Hallet Road, or the back gate on Cranberry Road?  How about the Stroud Mall?  The Crossings Outlets?  Which way do you go to get to the commuter bus stop (Martz)?

After you have familiarized yourself with the community as a whole, get a feel for the different sections, as each has a different atmosphere because of the original develpment plan, the phase in which it was built and the time period in which most of the homes were built.  For example, Section C is the area up around the lakes and boasts more green space than any other section.  Sections C4 & B1 are the most recently built sections and feature newer homes more typical of 'suburban' neighborhoods, rather than the wood and glass houses which are traditional 'Penn Estates houses'.

You will note that I mention section letters instead of the names that show on the section signs at each turn off of Penn Estates Drive.  The letters are the 'official' section designations and how your property is identified in the Administration office and at Security.  The named sections signs, like Valley View, Beacon Hill, etc., are basically just for show...the developer probably put them there for his marketing of the lots way back when, and they stuck.  I still, after all these years, don't have these fancy section names down.   

Once you know the lay of the land, you will be better prepared to make a decision about which house is the one for you.  Click here for a handy map of Penn Estates.  It is a plot map that shows street names, sections, and the shape of the lots and their numbers...very useful if you want to see where a particular home is located and how it is situated within the community.

As always, I am available to answer your specific questions about real estate in Penn Estates or other areas in the Poconos.  Please do not hesitate to post your question at the end of this article, inquire via email or phone, or catch me online through my Meebo chat screen. 

Buying a Home with No $$

'Seller assist' is a term used when the seller of a property pays some or all of the closing costs for the buyer of their property.  Seller assistance is becoming more common with the advent of 100% financing and low down payment loans.  As these types of programs have gained popularity, seller assistance has increased to meet the demand of today's cash-poor borrowers.  Please note:  These are not the sub-prime loans (for the credit-challenged customer) that have been in the news lately, rather these programs are best suited to borrowers with good credit histories and steady employment track records.

Typically a buyer puts in an offer to purchase a home and in the offer asks the seller to assist with closing costs.  It is then up to the seller to accept, reject or counter the buyer's proposal.  While these kinds of offers are not always considered the most desirable because of the potential for appraisal problems, in a slower market they can be taken more seriously.  In a hot seller's market, however, these kinds of offers are harder to get accepted because of the competition with more traditional offerings.  But in today's 'normalizing' market, credit-worthy-but-cash-poor buyers have better chances of winning contracts for the homes they want.

The maximum amount of seller assistance is determined by the type of loan the purchaser is applying for.  Most 100% financing programs allow up to a 6% seller contribution to the buyer's closing costs.  In most states this is sufficient to pay all of the buyer's costs, allowing them to get in to their new home with minimal out of pocket expense.

FHA loans also allow buyers with limited funds to purchase homes.  This program requires a 3% down payment but does allow the seller to pay a full 6% towards the closing costs.  Therefore, a buyer only needs 3% of the purchase price in order to close the transaction.  But even still, this program allows the down payment to be obtained through a 'gift' (monies not expecting to be repaid from parents, grandparents, etc) or through a grant.  Grants are obtained from organizations helping buyers (usually first-time buyers) purchase a home with little money out of pocket.  Usually these grants come with conditions such as the buyer taking a homebuyer counseling course, or repayment of the grant if the home is re-sold within a certain timeframe.

There are many mortgage financing programs available for buyers with limited funds.  Your loan officer will know all of the guidelines and requirements for them, and will be able to advise you accordingly.  For more information, please contact pat.wagner@abacusmort.com

Andy Williams, President
Abacus Regional Mortgage
610.837.1600

Investing in a Vacation-Rental Property

There are several considerations when purchasing a property with the intention of renting it out on a weekly, weekend, or monthly basis.  If you plan on hiring a management company, alot of this will be covered by their fees.  However, not all areas have these kinds of services available nearby, so you may opt to go at it alone or in partnership with a local person like a neighbor or a real estate agent.  Here are some things to consider:

1) Cost of the real estate itself - of course there will be an initial outlay of money when you buy the property, and then monthly expenses like mortgage payment, taxes, insurance, association dues, etc.

2) Cost of furnishing the house and outfitting it for use - of course the main furnishings are expensive but all the little things (coffee maker, trash cans, utensils, dvd player, and so on) will add up quickly!

3) Potential rents - how often will you be able to rent it and for how much?  What kind of marketing expenses will you have (photos, print ads, internet)?

4) Care and upkeep, i.e. who will clean after each tenant vacates, keeping the yard and outdoor living spaces tidy, etc.  What about emergencies and repairs?  How will you handle that?

5) Lease arrangements & security deposits - the lease is important as well as any rules you put in place for the use of your house, so I would recommend consulting an attorney to have a solid one drafted.  For example, is smoking allowed?  pets?  how many people can stay in the house?  what happens if there are problems?  Once you have your standard lease drawn up, how will you determine the release of tenants' security desposits?  Who will check the property to you and what will they look for?  Checklists are a must!

6) Rent payments and keys - how will tenants pay you and how will you get them keys? Investing in a lockbox may not be a bad idea.

I have a client in Penn Estates who I am assisting with this whole process and so far, I think we're doing well.  Time will tell, after we go through a couple of tenant cycles. Their house in Penn Estates seems to be getting alot of attention on the VRBO site.

Also, I just listed a property in Penn Estates, right next to the Highland Lake  Beachfront, which would make an excellent rental property.  The location is right, it is in excellent condition and it is fully furnished and equipped...there is even a row boat included!  Details

How is the Pocono Real Estate Market?

People (friends and family, anyway) always ask this question with a look of concern on their face or in the tone of their voice over the phone, expecting me to break down in sobs at my lack of business and, therefore, income.  However, I am busy!  Granted, inventory is up and I am always pretty busy listing homes, but there are lots of buyers out there right now too.  The phone is ringing pretty steadily at my office and traffic on my websites is definately up.

And as an even more telling example:  I have two buyers I am working with right now who both lost properties to other buyers last week.  Granted, the properties in question were in hard to find locations and priced aggressively, but the fact that there are still multiple offer situations occurring should convince you that the market is not as soft as one might think from listening to the media.  There are alot of buyers out there, still...they just seem to be taking their time and considering all of their options right now.  With inventory up (more on why later) and all the alleged 'bad news' out there, buyers are in no rush to make their purchasing decisions.   

So, to answer the question...the market is STEADY.