own it, keep it
DESCRIPTION
An Innovative Home Buying and Homeownership Campaign The Connecticut Association of Realtor®, Inc.("CAR") has launched Own it, Keep it! , a campaign to promote responsible and informed home ownership. The country's recent economic meltdown has taught us two serious lessons: 1. Finances are the backbone of real estate transactions and our economic stability. 2. Understanding how to buy a home can impact the ability to keep a home. CAR believes responsible home buying and ownership can happen through education. Own it, Keep it! is education -- it is objective information and relevant resources in an easy to read and understand website, www.ownitkeepit.org.TRANSCRIPT
- 1. Developing A Plan For Homeownership
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Thomas J. Fox
- Community Outreach Director at Cambridge Credit Counseling Corp.
3. AFCPE Accredited Financial Counselor 4. IFL Certified
Educator in Personal Finance 5. NCHECCertified Housing Counselor 6.
Radio Talk Show Host,Money AmericaThe Republican Newspaper (MA), By
William Burke, April 27, 2009
Own It, Keep It!
7. Having The Right Mindset
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Is your employer and your position within the company
reliable?
How is your credit?
Have you saved for a down payment?
8. Homeownership Done Right
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Owning a home provides not only a place to raise your family and
call your own, but an investment in your future.
Preparing to take on the American dream often comes with work and
sacrifice, but the advantages can outweigh the disadvantages.
Do it right by researching and knowing exactly what youre getting
into before buying a home.
9. 5
Overcoming Homeownership Learning Barriers
Financial Problems
Time Issues
Negative Perceptions
Own It, Keep It!
10. Resources For Getting Started
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Own It, Keep It! (ownitkeepit.org)
Connecticut Association of Realtors (ctrealtor.com)
HUD Certified Housing Counseling (hud.gov)
Connecticut Housing Finance Authority (chfa.org)
The United Ways 211 (infoline.org)
11. Advantages
Disadvantages
Stable Housing Costs
Tax Benefits
Equity
Control Over Your Environment
Stability
Monthly Costs
No Guarantees
Maintenance and Repairs
Decreased Mobility
Fewer Features Included
Things To Consider About Homeownership
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Own It, Keep It!
12. The people you will encounter on your way to owning, and
keeping, your home
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Who You Will Work With
13. Housing Counselor
Trained to assist prospective buyers and homeowners on variety of
homeownership issues. Provide educational classes or one-on-one
sessions to educate individuals on how to become homeowners and
maintain homeownership.
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Real Estate Agent
There are different types of agents you must be aware of.First
there is the listing agent who has a contract with the seller of
the home to represent the sellers best interests . A buyer's agent
works for the purchaser.They're also agentswho work with both the
buyer and the seller, this is referred to as dual agency and is
prohibited in some states.
Own It, Keep It!
15. Home Inspector
Individual who validates the structure and mechanical aspects of a
property.The inspector details his findings in a report discussing
major areas of concern.
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Lender
Lenders are banks, savings associations, credit unions, mortgage
companies and brokers, governmental agencies and other institutions
who lend money to homebuyers in need of financial assistance in
securing property.
Own It, Keep It!
17. Appraiser
Appraiser is hired by the mortgage lender to estimate the value of
the property to be financed.The appraiser works to determine the
fair market value of the house by comparing it with similar
onessold in the community.
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Insurance Agent
When financing a home, most lenders will require the homeowner to
secure insurance on the property.Your insurance professional will
be able to advise you on the proper coverage for your home.
Own It, Keep It!
19. Attorney
Attorneys specializing in real estate law provide invaluable advice
regarding your homeownership options.These individuals can be
especially helpful in the creation of real estate contracts, title
searches and the closing process.
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Own It, Keep It!
20. The costs of Homeownership
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Financial Aspects of Homeownership
21. Individual
Household
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How Much Home Can You Afford?
22. Importance Of A Plan
The most important financial step an individual can take!
Directed by goals and financial resources.
Reviewing spending habits ensures youre on the right path to
achieve your goals.
Provides direction as you manage all aspects of your finances --
spending, credit, savings, and investments.
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Own It, Keep It!
23. Gross Income
$1312 Gross Income
Gross income represents a persons income before taxes and other
deductions are taken out.
Does not offer a true representation of your finances.
Net incomerepresents the money you actually control.
Gross Vs. Net Income
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Own It, Keep It!
24. Ordering Your Credit Reports
Online: www.annualcreditreport.com
Telephone: 877-322-8228
Mail: Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Your must download form from www.ftc.gov/credit
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25. Check Your Credit Reports
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26. Dealing with foreclosure
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Keeping Your Home
27. What Happens With Foreclosure?
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When a homeowner loses the ability to make ongoing mortgage
payments, the lender can legally take ownership of the home
Lender can sell the property to cover the outstanding debt
In some states lenders can pursue a deficiency judgment if the home
is worth less than the amount owed
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What Are Types Of Foreclosure?
Judicial foreclosure involves a court action
Non-judicial foreclosure can be completed outside the court system,
however the lender is unable to get a deficiency judgment.
Own It, Keep It!
29. Avoiding Foreclosure
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Foreclosure prevention counseling services are provided free of
charge by nonprofit housing counseling agencies
These agencies are funded, in part, by HUD and NeighborWorks
America. There is no need to pay a private company for these
services
HUD-approved housing counseling agencies are available to provide
you with the information and assistance you need to avoid
foreclosure
If you are eligible for the loan modification or refinance program,
the counselor will work with you and your servicer.
30. There Is Help, But You Have To Ask!
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Many people avoid calling their lender when they have money
troubles.
Foreclosure is expensive for lenders, mortgage insurers and
investors.
HUD/FHA, as well as private mortgage insurance companies and
investors like Freddie Mac and Fannie Mae, require lenders to work
with borrowers.
31. Workout Programs
Lenders have workout options to help homeowners; however, these
options work best when the loan is only one or two payments
behind.
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32. Questions?
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