IT’S-A NUMBERS GAME…

In addition to covering your home, homeowners insurance also covers four more things:

  1. Your outbuildings, landscaping, and hardscaping. If you have outbuildings (like a barn), landscaping, or hardscaping (like fences), your homeowner’s policy most likely covers those for up to 10% of your policy amount (5% for plants).

For example, if you have $100,000 in homeowners insurance and someone drives into your fence, the policy would cover 10% or $10,000 in repairs.

Sometimes policies exclude damage to outbuildings, landscaping, or hardscaping caused by a particular peril (like wind).

  1. Damage or loss of your personal belongings. Your homeowner’s policy covers your family’s belongings, even when you take them out of the house. If your child heads to college with a laptop and it’s stolen, that’s probably covered by your homeowner’s insurance policy.

A home insurance policy covers a lot of your personal belongings, but not necessarily everything.

You’ll need additional insurance if you have many expensive items like jewelry, furs, or antiques.
Policies will either state that your personal belongings are insured for replacement cost or cash value.

Replacement cost means that the insurance company will pay the full cost of replacing an item (such as the laptop mentioned above, or a sofa damaged in a fire) once you show a receipt. Cash value means the insurance company will issue you a check for the amount that the laptop or sofa would have been worth when it was stolen or destroyed.

III. Remember your Additional Living Expenses will have limits. You are still on a budget. If you exceed that budget you may have to come out of pocket. Your policy will have limits on how long you stay and how much you can spend.

  1. Injuries or accidents at your house. Homeowner’s insurance coverage includes liability – meaning it covers you when you or your family members cause injuries or damage. This coverage also pays when your dog bites someone (medical payments) or someone falls and injures themselves.

We’re getting closer to storm season. 2017 was devastating. Check with your agent and make sure you are prepared.

Remember; “It’s A Numbers Game”!!!

Michael Gould

IT’S A NUMBERS GAME!!!

In addition to covering your home, homeowners insurance also covers four more things:

I. Your outbuildings, landscaping, and hardscaping. If you have outbuildings i.e. shed, fence, or landscaping, your homeowner’s policy most likely covers those for up to 10% of your policy amount (5% for plants trees, and debris removal).

Example, if you have $100,000 in homeowners insurance and someone drives into your fence, the policy would cover 10% or $10,000 in repairs.

Sometimes policies exclude damage to outbuildings, landscaping, or hardscaping caused by a particular peril (like wind).

II. Damage or loss of your personal belongings.Your homeowner’s policy covers your family’s belongings, even when you take them out of the house. If your child heads to college with a laptop and it’s stolen, that’s probably covered by your homeowner’s insurance policy.

A home insurance policy covers a lot of your personal belongings, but not necessarily everything.

You’ll need additional insurance if you have many expensive items like jewelry, furs, or antiques.
Policies will either state that your personal belongings are insured for replacement cost or cash value.

Replacement cost means that the insurance company will pay the full cost of replacing an item (such as the laptop mentioned above, or a sofa damaged in a fire) once you show a receipt. Cash value means the insurance company will issue you a check for the amount that the laptop or sofa would have been worth when it was stolen or destroyed.

III. Remember your Additional Living Expenses will have limits. You are still on a budget. If you exceed that budget you may have to come out of pocket. Your policy will have limits on how long you stay and how much you can spend.

IV. Injuries or accidents at your house.Homeowner’s insurance coverage includes liability – meaning it covers you when you or your family members cause injuries or damage. This coverage also pays when your dog bites someone (medical payments) or someone falls and injures themselves.

 We’re getting closer to storm season. 2017 was devastating. Check with your agent and make sure you are prepared.

Remember; “It’s A Numbers Game”!!!

Michael Gould

IT’S THE LAW !

The sale and purchase of a home are one of the most significant events that any person will experience in his or her lifetime. It is more than the simple purchase of housing, for it includes the hopes, dreams, aspirations, and economic destiny of those involved.

The Law

Civil Rights Act of 1866: The Civil Rights Act of 1866 prohibits all racial discrimination in the sale or rental of property.

Fair Housing Act: The Fair Housing Act declares a national policy of fair housing throughout the United States. The law makes illegal any discrimination in the sale, lease or rental of housing, or making housing otherwise unavailable, because of race, color, religion, sex, handicap, familial status, or national origin.

Americans with Disabilities Act: Title III of the Americans with Disabilities Act prohibits discrimination against persons with disabilities in places of public accommodations and commercial facilities.

Equal Credit Opportunity Act: The Equal Credit Opportunity Act makes discrimination unlawful with respect to any aspect of a credit application on the basis of race, color, religion, national origin, sex, marital status, age or because all or part of the applicant’s income derives from any public assistance program.

State and Local Laws: State and local laws often provide broader coverage and prohibit discrimination based on additional classes not covered by federal law.

Responsibilities

The home seller, the home seeker, and the real estate professional all have rights and responsibilities under the law.

For the Home Seller: As a home seller or landlord you have a responsibility and a requirement under the law not to discriminate in the sale, rental and financing of property on the basis of race, color, religion, sex, handicap, familial status, or national origin. You cannot instruct the licensed broker or salesperson acting as your agent to convey for you any limitations in the sale or rental because the real estate professional is also bound by law not to discriminate. Under the law, a home seller or landlord cannot establish discriminatory terms or conditions in the purchase or rental; deny that housing is available, or advertise that the property is available only to persons of a certain race, color, religion, sex, handicap, familial status, or national origin.

Michael Gould

(205)902-2283

E21 Realty

4000 Southlake Parkway #200

Hoover, Al.35244

michaelgould@e21realty.com

 Twitter-@lmgllc6

“Don’t go into court without a lawyer or a real estate deal without a REALTOR”

IT’S A NUMBERS GAME !!!

What is debt? What is credit?  Let’s keep it simple. credit is how much you can borrow.

Debt is the payback ratio.  basically there are two kinds of debt; managed and unmanaged.

Managed debt is good for building credit; it is the consistency of paying over time that lenders look for. Word of caution keep your debt paid down to a third of your total limit…ie. your total limit is $300 your limit is $100. I Hear you. but  remember this is  the formula by which you are  judged, and your creditworthiness is increasing, and that is a good thing. Find your total debt limit  on your card and divide by 3…Walla!  This should be your personal limit. Life happens… and when it does we may have to cut some other things i.e. movies, eating out…you get the point.

What if  I’ve been turned down for credit?  Go to a financial institution and inquire about a secure credit card or line of credit. You give them the money, and so they have no risk. Pay  on time keeping the third rule enforced and after 3-6mos you can ask for an increased line of credit.

 Disclaimer: please consult your financial adviser on how to construct your debt.This is not to be considered as financial advice.

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IT’S A NUMBERS GAME !!!

A real estate student knows the dangers of lead base paint, and pipes. so are we to believe the state of Michigan was unaware of the contamination, and whose next.
Housing and Urban Development (HUD) has required a Lead base Paint Addendum (LBPA) on pre-1978 homes. Here is HUD’s latest remedy. What do you think?

HUD Number16-034 FOR RELEASE
Shantae Goodloe Friday
202-708-0685 March 18, 2016
http://www.hud.gov/news/index.cfm

HUD OFFERS OVER $100 MILLION IN GRANTS TO CLEAN UP LEAD
AND OTHER HOUSING-RELATED HEALTH HAZARDS
Funding to protect children from housing-related lead poisoning, asthma & allergies

WASHINGTON – The U.S. Department of Housing and Urban Development today announced that it is making more than $100 million in grants available to help eliminate dangerous lead-based paint hazards from the homes of lower income families. These grants are intended to protect young children from lead poisoning and provide an opportunity for states and local communities to establish programs to control health and safety hazards by assessing and re-mediating lead-based paint and other housing related health hazards.

HUD Secretary Julián Castro is focused on advancing policies that create opportunities for all Americans, including helping children and families secure quality housing by protecting them from the hazards of lead-based paint and other home health and safety hazards.

IT’S A NUMBERS GAME !!!

vol. 16  edition 03

Crowdfunding Title III of the Jobs Act went into effect as of January 29th of 2016.

What does this mean to you?  Now you can raise capital up to $1 Million and allows unaccredited investors to participate in crowdfunding. It is the opinion of many who watch this closely, that this is real crowdfunding because it opens investments to a significant population of investors through an unaccredited investors definition, which caps investors income or net worth at $ 100,000. Title III also articulates what regulatory compliance will exist for crowdfunding platforms and the companies that conduct a capital raise through a platform.

Remember, funding portals will be required to register with FINRA and the SEC and will be subject to ongoing reporting

Let’s start some businesses…

http://www.e21realty.com

Commercial and Residential

IT’S A NUMBERS GAME!!!

It seems as though two can play the game better than one, or at least out of the gates.

Nar’s recent survey indicated that 27% of first time home buyers were married with kids,

36 years of age, and a combine income of 100k.

Next unsuspected and trailing by 9 years …the single male making his first purchase at 45

Years of age income streaming around 67k, however it is noted that 39% of this 89% group

were previous owners. (Silently) Go Men!!!

5 links (years) behind the single males are the single females. Fabulous 50 years of age and touting

$57,300 income 39% were first timers, however we shall note that of this group 87% had owned before.

Coming in last place are the kids, yet to buy a home or pay a mortgage, or any other bills. (pssst) kids it’s

A trick. Don’t ever grow up.

Oh yea, did I mention that 9o-95% of all these groups (smart people) used a REALTOR…

Michael Gould

Commercial & Residential Consultant

IT’S A NUMBERS GAME

IMG_2027Vol: 15                                                                                                   edition xi

Do You Tip? Do you know the balance before the cashier gives the total?

Here is a quick and easy formula.

Who needs a calculator?

You want to leave a 15% tip on a meal that cost $32.00.

First, convert the 15% to an actual number that can be used in a calculation. For percent’s, this is always done by simply dividing the percent (in this case 15%) by 100%.So, the conversational term “15%” becomes 15% / 100% = 0.15 in terms of a real mathematical number.

Second, you need to find out what 15% of your $32.00 meal cost. This is always done by multiplying 0.15 by $32.00, or

0.15 x $32.00=$4.80.

So, the amount of tip you are going to leave is $4.80.

This makes the total cost of your meal (to write on your charge slip or other payment)

$32.00 + $4.80 = $36.80.


Quick tip calculation for 15% tips:

If you’re leaving the standard 15% tip, here’s a quick and easy way to calculate it in your head, at the table in the restaurant, without embarrassing yourself by scribbling all over the back of a receipt or getting out a calculator:

15% is 10% + 5% (or 0.15 = 0.1 + 0.05, dividing each percent by 100). Thinking about it this way is useful for two reasons. First, it’s easy to multiply any number by 0.1; just move the decimal point left one digit. For example, 75.00 x 0.1 = 7.50, or 346.43 x 0.1 = 34.64 (close enough). Second, 5% is exactly half of 10%. So here’s how this quick and easy method works:

Take the total cost of your meal, $32.00 and multiply it by 0.1 by sliding the decimal to the left one digit to get $3.20 (you can do this in your head at the table). $3.20 is 10% of your meal cost. But the proper tip to leave is 15% (you need to throw in another 5%).

The additional 5% is just half of the 10% amount. What is half of $3.20? About $1.60. (Finding half of a number is also something you can do in your head at the table.) So, the total tip to leave is the 10% amount PLUS the 5% amount (for a 15% tip) or $3.20 + $1.60 = $4.80

The general rule here is:

  1. Find the number that results from sliding the decimal point of the meal’s cost left one digit,
  2. And add on another half of this number.


That’s your tip!

It’s A NUMBERS GAME!!!

What Happens to a Reverse Mortgage After Death or When a Reverse Mortgage Becomes Due?

 
 


It’s well-known that many Americans (more than half, actually) are far from prepared for retirement. So to fill gaps in their retirement income, some are finding that reverse mortgages can fit into their financial planning.

But, like any financial product, reverse mortgages can be complex and must be fully understood by borrowers.

For starters, a reverse mortgage is a loan that converts some of your home equity into cash flow. A home equity conversion mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration and is the most common reverse mortgage.

Depending on your age and current interest rates, a portion of the equity that you have built up over years of making mortgage payments can be made accessible to you through a reverse mortgage.

The draw to this product for many retirees is that no monthly payments on the loan are required. However, what some borrowers don’t realize is that they are still required to pay real estate taxes, utilities and hazard and flood insurance premiums while they have a reverse mortgage.

Failing to maintain these payments and keep the house in good repair may be grounds for calling your loan due and payable.

So what exactly happens when your reverse mortgage becomes due? And what other circumstances may trigger the loan to become payable? Reverse mortgage experts weighed in to explain.

Why a Reverse Mortgage Does Becomes Due

A reverse mortgage loan has to be completely paid off when the last surviving borrower dies, sells the home, or moves out for one continuous year, which includes moving to a different home, as well as moving into an assisted living facility or nursing home.

The loan also becomes due if you stop paying your property taxes or homeowners insurance, or fail to maintain the property in good repair. While you don’t have a monthly mortgage payment, it’s important to remember you still have other payments you must maintain or else the loan will become due. “Failure to pay taxes and insurance is the number one reason behind most of the [reverse mortgage] foreclosures,” says Dan Larkin, divisional sales manager of Schaumburg, Illinois-based PERL Mortgage, Inc.

However, the most common scenario when a reverse mortgage becomes due is that the borrower has passed away, says Ryan LaRose, president and chief operating officer of Celink, a reverse mortgage servicer.

When a borrower dies, the servicer becomes aware of his or her death through public records and sends out a condolence letter to contacts listed on the loan, notifying heirs that the loan has become due and payable.

Once the reverse mortgage is due, it must be paid back in full in one lump sum, LaRose says.

Is a Reverse Mortgage Right for You?

Who to Contact When the Reverse Mortgage Loan Becomes Due

Maintaining regular communication with the borrower’s reverse mortgage servicer is imperative during this process.

“The biggest thing is knowing that your best resource is to pick up the phone and call the servicer,” LaRose says. “If we don’t know what’s going on, we have to assume the worst — that they have no intentions of paying off the loan.”

So keeping in close contact with the servicer can actually be a benefit to the heirs, or those responsible for the borrower’s estate.

“The sooner you can contact the servicer, the more time you’re going to have [to pay off the loan], which means the more options that are on the table,” LaRose says.

Options for Paying Off the Reverse Mortgage Loan

Because a reverse mortgage must be paid off in full when it becomes due, it is often easiest for heirs to sell the home to repay the loan.

If your home is worth more than the loan balance, then you will get to keep the difference, under Department of Housing and Urban Development (HUD) rules. If your home is worth less than the loan balance, your heirs won’t owe any additional money beyond what the home is worth.

But if heirs plan to sell the home, they need to inform the reverse mortgage servicer and provide documentation, such as a real estate listing agreement, that shows this is the route they’re taking, LaRose says.

If your heirs want to keep the home, they’ll need to pay off the loan immediately. If the loan balance is more than the home is worth, heirs will typically only have to pay what the home is worth, not the full loan balance, according to federal regulator the Consumer Financial Protection Bureau. With a HECM loan, heirs can satisfy the loan by paying 95% of the appraised value of the home.

How to Get an Extension

Staying in constant communication with the reverse mortgage servicer can help extend the amount of time heirs have to repay the loan, LaRose says.

When requesting an extension, heirs must contact the servicer and provide documentation, such as a letter of hardship that details their intentions to repay the loan, a real estate listing, proof that they’re trying to obtain financing to keep the house, or probate documents, for example, LaRose says.

The servicer will then take those documents to HUD, which can grant the servicer an extension.

However, keep in mind that heirs will only have a maximum of one year from the date the borrower died to repay the loan, LaRose says.

How to Prepare for a Smooth Payoff

Planning ahead is key. To prepare for a smooth payoff, borrowers should strongly consider granting powers of attorney and naming the executor of the estate in their will.

This will make it much easier for the servicer to contact the appropriate heir or heirs when the reverse mortgage becomes due and payable.

“The smoothest transactions are ones where there has been proper planning in place — where the borrowers planned ahead of time and have all the wills and documentation in place before they pass away.

  • Michael Gould e 21 Realty
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Estimate Your Reverse Mortgage Loan Amount

   

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IT’S A NUMBERS GAME!!!

Buyers, or the lack of them, normally get the blame for all that ails housing.

When not enough people want homeownership, or can afford it, the available inventory of for-sale homes sits and loses value, and that’s bad.  Fed chief Janet Yellen may be one of the few people who believe this is currently an issue.

Knock on wood, that doesn’t seem to be a problem of the moment. This morning, the National Association of Realtors will release data on existing home sales for August.Consensus expectations are for a run-rate of 5.5 million. Likely, commentary accompanying the actual figure, to be disclosed at 10 a.m., will be that limited supply continues to stifle demand and inflate prices. Scarcity unbalances demand.

How many markets and submarkets do you hear about these days where available, for-sale inventory goes languishing?

The pace of sales may slow, the mix may shift, traffic flow may be off and on. But few question the fact that if there were a healthy supply of good homes in good communities–new and used–at varying price points and offering a variety of fair finance options, there would be a steady stream of demand.

If a market is creating jobs, or sustaining them, or casting a spell of allure to people–like retirees–to move there, there is demand. We see it now in the form of household formations. We do not see it in terms of tran

  • As GenX moves through the 40-somethings and 50-somethings, structural demand should continue to take a hit vs. longer term trends.
  • Focus on the lower-price tiers of the housing market, both for new and existing homes, will be likely to pay off for those who can manage the capital and time risks of providing those offerings for buyers who want to enter the ownership continuum
  • Focus among new home builders on people currently in their latter 50s and early 60s will be another big pay-off area, assuming that this is not a homogeneous cohort, and the existing options–even “age-ing in place” in their current home–may not be preferable, given where their kids are drawn to to find their livelihoods.
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