Ask the Expert

Q I lost my job and got behind on my mortgage payments. Now I have a new job and can pay my bills. But I don't see any way I'll be able to catch up with my mortgage payments. Can I avoid losing my home?
A You're in luck! Fannie Mae, the nation's big mortgage financing company, recently announced a new kind of loan called the HomeSaver Advance.
This loan is designed for people who have fallen behind on mortgage payments because of divorce, job loss, or illness. While your local lender will usually give its good customers time to catch up with payments, their limit is typically two years. After that time, you must be in good standing.
With the HomeSaver Advance program, you can get a 15-year loan at 5 percent interest that covers delinquent payments. You won't be required to make a payment on the loan for six months.
You won't get the money directly. Your loan servicer, the company that provides billing and payment services for your lender, will get the money.
To qualify, a borrower must have a loan that is at least six months old that was sold to Fannie Mae by the original lender. This is the case with about 23 percent of mortgages nationwide.
You must also be behind in payments in an amount equal or greater than two full payments of the mortgage principal, interest, taxes and insurance.
You must show your situation has resolved itself and that you will be able to carry another loan.

Did You Know?

Ask the Expert

Q I'm applying for a mortgage and now my neighbor tells me I should not buy the car I've been considering. Is that true?
A As a general rule, it is a good idea to avoid all major purchases before you close on a loan. Don't buy cars, appliances, furniture, or any big ticket item. Don't lease a car. This is generally because a lender will pull your credit report before they make the loan. Any major, new financial burden you incur can change your debt to income ratio. If this happens you may no longer qualify for a home loan or the loan package will have to be changed to accommodate the new circumstances.
By the way, be sure to make absolutely sure all your bills are paid on time before you close. Unpaid bills can also change your profile with a lender since you become less credit worthy.
Q My real estate agent tells me that a home I am interested in has an 'assumable mortgage' and will be a good deal for me. What is this and why is such a mortgage a good deal?
A Sellers can make their properties more attractive by offering an assumable mortgage. An assumable mortgage is a loan that enables a buyer to take over a seller's mortgage and assume all the responsibility for existing mortgage (if the lender agrees to the deal.) This can be a good deal for the buyer if the seller has a lower-rate mortgage than that which is currently available.
The mortgage, however, might not cover the full cost that the seller wants out of the home. Say the seller has a low-interest $100,000 mortgage on the property, but the seller wants $150,000 for the house. In this case, the buyer can assume the low-interest $100,000 mortgage, but will still have to come up with $50,000 either by borrowing it (at current interest rates) or by paying cash.
The lender can also change the terms for the buyer, or not agree to the assumption of the mortgage, if the buyer is not sufficiently credit worthy.
Sellers must be sure to release their liability in writing at the time of the assumption of the loan, to ensure that they are not held responsible for the mortgage if the assuming party defaults.

Inheritance and debt

If your parents run up a lot of bills before they die, you will not inherit their debt. But creditors can collect the proceeds from assets sold from the estate.
That means, if your parents owe $50,000 to creditors but own a house worth $60,000, heirs will only be able to inherit $10,000. On the other hand, if your parents die with a lot of debt and no assets, you won't be responsible for the debt. You will be responsible for any loan you co-signed.
Creditors can collect from a parent's estate even if property or stocks are promised to a child in a will. Insurance policies and retirement plans are generally protected, but that's all.

Ask the Expert

Reverse Mortgages
Q Home prices are falling in my area, if I take a reverse mortgage, will I end up in financial trouble if the house is worth less than my loan?
A No. Most reverse mortgages (about 90 percent) are FHA-backed Home Equity Conversion Mortgages. They come with an FHA guarantee that protects both the lender and the borrower from falling home prices. So, if property values suddenly drop, the homeowner is fully protected by the FHA insurance.
If the homeowner has opted for monthly checks for life, they will always get their monthly check, even if declining property values have made the house worth less.
In fact, the lender or bank does not own any part of the home and cannot call in the loan as long as you want to live in the house, keep up the property, and pay the taxes.
Even your heirs will not be forced to sell the home. They may keep it and refinance to pay off the outstanding balance. In the vast majority of situations, this balance will be much less than the house is worth.
So, a reverse mortgage remains a great way for seniors who are house rich but cash poor to get money out of their house while still living in it.
Any homeowner 62 or older can use a reverse mortgage to convert his or her home’s equity into tax-free income. Instead of paying the lender every month, a homeowner gets a check from the lender. The loan is repaid when the homeowner dies or sells the house.

The District at Cool Springs Galleria

Galleria mall to add open-air "lifestyle center"

FRANKLIN -- CBL & Associates Properties, Inc., owner of three Nashville-area malls, announced plans today to build an open-air shopping, dining and entertainment area called The District at CoolSprings Galleria.
The 200,000-square feet of space would feature "a targeted selection of junior anchors, an array of high-fashion boutiques and quality sit-down restaurants in a luxurious outdoor atmosphere," according to the announcement this morning. The first phase would be ready in 2011.It would be built on existing parking lots to the north and west of the mall.
“We are pleased to announce plans for this latest enhancement to CoolSprings Galleria, which builds on the success of the center and will cater to the growing upscale demographic,” said Stephen Lebovitz, president of CBL & Associates Properties, Inc. The annoucement follows development of open-air "streetscape" type centers in Murfreesboro, in west Nashville, and adjacent to the Green Hills Mall.
CBL owns the mall, which was extensively remodeled in 2006, and retail areas to the north, called Cool Springs Crossing.

Streetscape Meeting

City of Franklin to Hold Public Meeting
on Streetscape Project
Presentation will focus on long-term positive economic impact this project will have on community.

On Wednesday, February 4th, the City of Franklin will hold a public meeting at 5:00 PM in City Hall to discuss plans for the Gateway Corridors and Connector Streets Project (formerly known as Streetscape).

John Grossman, president of E.G. & G. Inc. and designer of the City’s original Downtown Streetscape project, will give an update on the current status of the project and the positive economic impacts the project will have on this community. The City broke ground in May 2008 on the phase currently under construction - Fifth Avenue from Main Street to Highway 96 West. Also included in this phase is Third Avenue from the Square to the Bicentennial Park property.

“This project not only improves the look and feel of our city, but also will have a tremendous economic impact for years to come,” stated Eric Stuckey, Franklin’s City Administrator. “We’re inviting everyone to come out to this meeting and learn how this project will create jobs, increase property values and encourage heritage tourism.”

The Gateway Corridors and Connector Streets Project is a continuation of Streetscape, completed by the City in 1991. Streetscape was a joint effort of the City, Downtown Franklin Association, and the Heritage Foundation to revitalize downtown Franklin. The project included underground utilities, brick pavers, and a re-design of the Square. Since completion of the first Streetscape, the City has received several awards including the “Great American Main Street Award,” “Preserve America Community” and, most recently, one of the “Top Dozen Distinctive Designations” award from the National Trust for Historic Preservation.

While in town, Mr. Grossman will make presentations to several civic organizations, including the Franklin Breakfast Rotary and the Franklin Lions Club. The presentation on Wedne

Agent or no agent?

First, a real estate agent can sell your house faster and for a higher price than you would get by selling it on your own. According to the National Association of Realtors, in 2007, the average price of a home sold by the owner was $180,000. The average price of a home sold by a real estate agent was $240,000. Here are some of the reason for the difference.
A professional agent is familiar with the prices of similar homes in your area and can help you adjust the asking price higher or lower. Either way, the property will sell faster if the price is right. real estate agents are good at pricing because they remove themselves from the emotional aspects of selling.
Taking the misery out of finding a buyer is one of a real estate agent's great services. You won't be bothered by odd telephone calls and obvious "lookers" who just want to see your place. It will only be shown to serious and qualified buyers.
Marketing is a big part of the agent's job. He or she will photograph the home and advertise it at no cost to you. It will be included in the Multiple Listing Service so anyone in the country can see it.
Handling the volume of paperwork involved in a closing is part of the agent's job. Today, some purchase agreements are 10 pages long. Add to that the federal, state, and local disclosure papers. The agent can provide a list of professionals you can choose from whose services will be involved.
After the closing and sale are complete, questions can arise on subjects that did not have to be considered at the closing.
Your agent will still be there for you to settle any questions about property tax assessments or other matters that could come up months after the sale.
Are you a buyer?
Most of these skills are also involved in buying a home. The agent will find properties that fit with your needs, wishes, and price range, saving you a great deal of time and trouble. After that comes the price negotiating, helping to find financing, and everything to do with the closing.

Did You Know?

Curb appeal adds value, comfort to a home

Real estate agents say curb appeal is the attractive presentation of a home's exterior. It's a big factor when selling a house, but it can be just as important to the people who live there.
* Seasonal decorations make the entrance to your home look inviting. Colorful flowers and potted plants are effective in summer. After that, you could try pumpkins and Halloween decorations, and Christmas brings wonderful decorating opportunities.
* Doors of apartments and condos can be decorated with attractive wreaths. Balconies are enhanced by plants and seasonal decorations. A welcome mat is a nice addition to the doorway of a condo or home.
* Sweeping the front walk and uncluttering a yard add greatly to curb appeal. Keep toys, bicycles, and lawn mowers out of sight.
* Display house numbers clearly and attractively. They add to decorative value and help guests find your home. More important: Firemen and police can find your place too.
* Keep bushes trimmed, grass cut.
Curb appeal is affected by the appearance of your windows. Remove clutter and knickknacks that can be seen from the outside. Consider the appearance of your home with blinds and shades drawn. Do curtains and drapes of various colors add to the exterior view, or would the house be more attractive if all drape linings were the same color?