Responding to water flood damage in your home
November 18, 2009
The unexpected is always what every homeowner fears when there is a thunderstorm or sever weather forecast. Owning a home can become a large headache when things begin to go wrong or you are in need of emergency repair work. The best approach to handle every possible home emergency, from fires to water flood damage or electrical malfunctions is to have a safety plan in place. Certain areas of the country (California, Hawaii, Florida) may require you to include planning for hurricanes, earthquakes or volcano eruptions. There are some simple guidelines that everyone should follow and more advance procedures you can take to help ensure your safety and minimize residual damage to your home.
The government has a special division called FEMA, which stands for Federal Emergency Management Association. In large catastrophe areas, such as New Orleans after hurricane Katrina struck ground, FEMA is generally the agency that coordinates the disaster relief and restoration processes. They work with the local emergency response teams such as fire and police as well as coordinate National Guard and private contract support.
Smaller scale events such as flooding or debris removal from a thunderstorm most likely will not involve the resources of FEMA. More likely your local emergency personnel dispatched to deal with fallen electric lines or rescuing home owners who may be trapped in their homes. Property damage from storms or fires is likely to require the enlistment of a construction or restoration firm. Finding a company to assist in water damage repair or cleanup can be done with references or a quick search of the internet. This is a component of pre-planning a disaster that home owners and business owners should initiate. One of the best ideas is to keep valuables such as passports, birth certificates, extra cash and emergency phone numbers in a safe that is both water and fire proof. The pre-planning will help you to have some necessary resources as you scramble to ensure the safety of you and your loved ones. The primary goal with any emergency should be the safety of you and your family. Risking injury to try and preserve your home is never a good idea, and if you have any doubts as to the integrity of your property after an unplanned disaster, call a professional for a safety inspection. Keep your family and loved ones away from flood or water after a fire as these are likely to contain pollutants. Your homes air quality could be a hidden safety item following a catastrophe due to soot or mold spores, so if you have concerns, obtain an air quality kit to properly check your homes air for unwanted contaminants.
Become a renter of your current home
November 9, 2009
The downfall of the housing markets has forced the nations largest loan service companies to borrow billions of dollars from the U.S. government and taxpayers. The major challenge that is facing the real estate market is the continued escalation of foreclosed properties. Over the past two year home foreclosures have jumped to nearly one out of every ten homes in a number of major metropolitan cities, and the long standing goal of home ownership has eroded.
Home foreclosures have a devastating impact on the market as these properties tend to sell for twenty five to fifty percent less that comparable homes in the neighborhood. The surge in home foreclosures has significantly impacted real estate values as a whole and over the past twelve months the median sales price for homes has declined by over ten percent. The government has attempted to slow down this process through the making home affordable loan modification program and streamlined refinance loans, but these measures have yet to show a meaningful impact. The large challenge that the market faces is the lack of motivation for homeowners to keep their present homes. Home owners who are upside down on their mortgage loans by tens or hundreds of thousands of dollars have simply chosen to walk away from their properties, further compounding the pricing epidemic.
Fannie Mae, the nations largest loan servicing company (a company that buys mortgage back securities from lenders) has recently announced a pilot program aimed at slowing down the foreclosure epidemic. The new program enables a borrower to simply pursue a deed in lie of their property, while contractually signing a lease agreement to stay in the home. The process benefits the homeowner who is not forced to move and often receives a significantly lower house payment as well as Fannie Mae and the lender who continue to receive cash flow and are not forced to unload another property below market values. The lease agreements are typically in place for over one year and provide both the borrower and lender a short term solution to the foreclosure epidemic. The overall housing markets benefit from reduced home foreclosures on the market, helping to reduce inventory and bring price stabilization to the market. The real estate market has benefitted this year from the governments tax rebates and historically low interest rates, but sales are well below levels of 2006 & 2007 and are likely to remain low through 2010. Eliminating excess inventory is a great way to help stabilize prices and provide a short term solution that benefits all parties.
