www.reporterherald.com Saturday, December 17, 2011 Reporter-Herald

Real EstateMatters

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■ See GLINK/Page E3

Recentchangesto HARPmay allowrefinanceILYCEGLINKTRIBUNEMEDIA SERVICES

Question:My daughter is inan interest-only loan with a30-year term. Her interest

rate is 8 percent. She owes$128,000 on the loan. Fannie Maeowns the loan.She has tried to refinance her

home. We thought that she couldrefinance her loan under the Mak-ing Home Affordable Plan, but shewas told she makes too much mon-ey to get help.What would happen to her if she

walks away from the home, andwhat are the penalties? Can she besued for the principal, and can theygarnish her wages? She has a goodjob, and if her wages were gar-nished, she would lose her employ-ment. She is a single mom with a10-year old son with no outsidehelp.Answer: Your daughter does have

a high interest rate on her loanbased on where interest rates are to-day. But her loan is an interest-onlyloan, which means that her monthlypayments are much lower than theyotherwise would have been. Did yourdaughter take out an interest-onlyloan to lower her monthly paymentsso that she could afford to buy thehome?You didn’t mention that your

daughter can’t afford to make thepayments. You seem to be askingwhat she can do to find a lender whowould be willing to refinance hermortgage.Is she having a problem with the

equity in her property? If the valueof her home has dropped, she maynot have enough equity to do a refi-nance. Most lenders will only allowher to borrow 80 percent of thehome’s value. So if her old loan isgreater than what her home is nowworth, a lender won’t give herenough money in a refinancing topay off the old debt.You might want to wait and see if

your daughter can benefit from therecent changes that are being madeto the Home Affordable RefinancePlan (known as HARP 2.0). It is de-signed for homeowners who want torefinance but whose homes areworth less than the mortgage bal-ance. It may be that the HARP 2.0guidelines will allow her torefinance her home. (Get moreinformation on the program atMakingHomeAffordable.gov.)If your daughter walks away from

the home, she runs the risk that thelender will pursue her for any moneyowed on the loan. While in somestates there are laws that preventdeficiency judgments against bor-rowers, many states allow them.

Homebuyers’New Year’sResolutionsfor 2012

Start the yearoff right whenconsidering ahome purchase

ILYCEGLINK AND SAMUAL J.TAMPKINTRIBUNEMEDIA SERVICES

Over the 18 years thatwe have been writingthis column, we have

offered New Year’s resolu-tions for homebuyers andsellers, along with financialresolutions that everyone canuse to start their year offright.Unfortunately, it has been

another very difficult year inreal estate. And while we be-lieve that the housing marketwill start to stabilize in 2012,we also believe it could be an-other very difficult year forhome sellers, agents, apprais-ers, mortgage lenders, homeinspectors, and title and es-crow companies.On the other hand, if

you’re buying a home to livein or as an investment, 2012looks like it’ll be another ter-rific year.Before we get to the reso-

lutions, let’s look at a snap-shot of 2011 in the real es-tate market:• Roughly 25 percent of

homeowners are underwateror are nearly underwater withtheir mortgages, accordingto third quarter of 2011 datafrom CoreLogic.• New home sales remain

at near record-low levels, withonly an estimated 310,000new homes sold in 2011.• Home prices haven’t

moved much at all, and arestill declining in some states.Overall, a number of surveysfound that home prices fellby another 3 percent in2011.• The overall number of

households has shrunk bymillions during the Great Re-

cession. The trend for fami-lies to double or triple upcontinues.• More than a million

homeowners were foreclosedon in 2011. Next year,lenders are expected to pro-cess some of the foreclosurebacklog, putting another mil-lion or more homeowners in-to foreclosure.• Mortgage interest rates

fell to historic lows in 2011.As we went to press, borrow-ers could get a 30-year loanfor less than 4 percent, a 15-year loan at less than 3.25percent and a 10-year loanfor less than 3 percent. All ofthis assumes and excellentcredit and at least 20 percentequity in the property.• Despite ultra-low interest

rates, millions of homeown-ers remain in financial jeop-ardy, unable to afford theirpayments and unable to refi-nance because of declining ornegative equity in theirhomes.• Starting December 1,

2011, the federal govern-ment introduced a new andimproved version of theHome Affordable RefinanceProgram, now commonlyknown as HARP 2.0. Up untilnow, only 70,000 underwaterhomeowners have been ableto refinance under HARP.Supposedly, the new and im-proved program will encour-age lenders to do more inthis area. Nevertheless, mosthousing experts are skepticalthat this version of the pro-gram will work better thanthe original one. And as withall of the Making Home Af-fordable programs, participa-tion is entirely voluntary forlenders.• There’s still no consensus

on what to do about FannieMae and Freddie Mac. Nearlya year ago, the governmentwas required by law to intro-duce a plan on what to dowith these secondary marketbehemoths. But political in-fighting and the depressed

housing market has kept anynew ideas from taking root.Once again, we’re starting

a new year with a less thanoptimal housing market out-look. Still, if you’re hoping tobuy a home in 2012, here area few New Year’s resolutionsyou might want to make:

1. PULL A COPY OF YOURCREDIT HISTORY ANDCREDIT SCOREMortgage lenders have be-

come extremely conservativeand restrictive in decidingwhich mortgages will getfunded. Lenders will pullcredit scores from each ofthe three credit reporting bu-reaus (Equifax, Experian andTrans-Union) and then usethe middle score to deter-mine your loans interest rateand terms. You need to knowthat information ahead oftime. Go to AnnualCreditReport.com and receive afree copy of your credit histo-ry and then pay for your cred-it score (about $9). You canalso go to each credit report-ing bureau or MyFico.comand purchase a copy of yourcredit history and score, ifyou’ve already used up yourfreebies.

2. PRACTICE GOODCREDIT BEHAVIORLenders regard borrowers

with credit scores above 780as their best customers. Un-less your credit score is abovethat level, you should workon eliminating any errors,and practicing good credit

behavior so that your creditscore rises. The best thingyou can do? Pay your bills ontime and in full each month.The next-best thing you cando is maintain four open andactive lines of credit. Eachcredit reporting bureau of-fers good credit behavior tipsfor free on its website, or youcan go to MyFico.com. (Fulldisclosure: I contribute realestate posts to the Equifax Fi-nance Blog, where Equifax’scredit experts blog aboutcredit trends and informa-tion.)

3. SHOP AROUND FORTHE BEST LOANEven though the federal

government is backing morethan 90 percent of all theloans through Fannie Mae,Freddie Mac, FHA, VA andUSDA, it pays to shoparound. Make sure you talkto at least four or five lendersbefore you sign your applica-tion, including a “big box”lender, a small local lender, acredit union, a mortgage bro-ker and an online lender. Usethe information you gleanfrom each lender to negoti-

ate a great deal for yourself.Yes, you are allowed to nego-tiate with lenders and askthem to give you a betterdeal.

4. CREATE A GREAT HOMEBUYING TEAMWhether you’re buying in-

vestment property or a hometo live in, you’ll want to cre-ate a team of real estate pro-fessionals who can help youfind the right property, at theright price, on the rightterms, without anyheadaches.The team should include a

great real estate agent, mort-gage lender, real estate attor-ney, tax preparer (with expe-rience in investment real es-tate if you plan on buying re-al estate as an investment)and real estate inspector tostart. Residential real estateinvestors will want to add a1031 exchange professionaland commercial inspector (ifappropriate) to the mix.Having the right team in

place will go a long waytoward making your dreamof homeownership cometrue.

LPS Mortgage Monitor: Colorado 6th-best in nationCOLORADO DIVISION OF HOUSING

According to the October 2011report released by LPS AppliedAnalytics, there were 3.9 mil-

lion loans in the US that were eitherin foreclosure or were more than 90-days delinquent during October ofthis year. Delinquencies were down28 percent from the peak during Oc-tober, but the foreclosure inventoryremained at historic highs.

Nationally, the percentage of activemortgage loans that were non-cur-rent during October was 12.2 per-cent, which was down 7.5 percentfrom the same period last year.In Colorado, the percentage of

active mortgage loans that werenon-current during October was6.7 percent, which was down 13.3from the same period last year.Colorado's year-over-year decline innon-current loans was the eighthlargest in the nation. Only Nevada,

Michigan, Arizona, California, Utah,Idaho and Wyoming showed largerdeclines.Only five states reported lower per-

centages of non-current loans thanColorado, making Colorado sixth-best in the nation for the percentageof its mortgage loans that were non-current during October 2011. Mon-tana, Wyoming, South Dakota, Alas-ka and North Dakota reported lowerpercentages of non-current loansduring October.

LPS Mortgage Monitor is an in-depth report of mortgage industryperformance. The monthly report isbased on data from the company’smarket-leading repository of loan-lev-el residential mortgage data and per-formance information, includingmore than 40 million active loansacross the credit spectrum. This datais analyzed by LPS experts to producemore than 30 charts and graphs re-flecting both trend and point-in-timeperformance observations.

For more information, callGlink’s radio show at800-972-8255 on Sundaysfrom 9 to 10 a.m., write to RealEstate Matters Syndicate, P.O.Box 366, Glencoe, IL 60022 orvisit www.thinkglink.com.

Real Estate Matters

www.HomeStateBank.com970-203-6100

Check the license status of yourmortgage loan originator at

http://www.dora.state.co.us/real-estate/index.htm

An FHA 203(k) mortgage allows you to finance both your homepurchase and renovation with a single loan. Call now to learn more.

Loans and rates subject to credit approval. Owner-occupied residences only. FHA conditions and restrictions apply.

Vivian DeVoe, VP Mortgage Banker, NMLS#269876, 970-227-4702

Buying a home that needs work?Call the experts in FHA 203(k)renovation financing.

Think big Bank small

E2 Saturday Reporter-Herald December 17, 2011

Saturday Reporter-Herald December 17, 2011 E3

Mortgage rate update

30-year fixed

15-year fixed

5/1 ARM

This week Last week Trend

3.93%

3.26%

2.85%

3.95%

3.29%

2.91%

Home & Real Estate is producedevery Saturday by the

Loveland Reporter-Herald.

Regional Snapshot for Loveland/Berthoud Residential

September October November

Active Listings 842 807 739Previous Year Active Listings 1027 969 903

Sold Listings 115 117 95Previous Year Sold Listings 114 105 90

Median Sales Price $209,275 $215,000 $240,000Previous Year Median $196,000 $211,000 $206,819

Average Days on the Market 136 109 130Previous Year ADOM 122 121 122

Year to Date Listings Sold 1079 1196 1291Previous Year YTD Listing Sold 1055 1160 1250

News and Press Releases: TheReporter-Herald welcomes news onhirings, advancements, awards,classes and other information ofinterest to the real estate and homecommunity. Submit information tojcody@reporter-herald.com.

Advertising: For advertisinginformation, call Dan Grassmeyer.Office: 970-635-3615Cell: 970-214-6297E-mail:

dgrassmeyer@reporter-herald.com

H& Real Estate TransactionsRE

GLINKFrom Page E1

Real Estate Transactionsare supplied by ProspectsUnlimited Inc., 1151 EagleDrive No. 467, Loveland,CO 80537, 667-1537.

Loveland• Tanya Jordan from

Fannie Mae, 924 CortezCt, Loveland, $99,900,home• Sheryl Regan from

Loveland Habitat For Hu-manity, 2145 SagittariusDr, Loveland, $150,000,home• Brad & Carol Reak

from David Naylor, 2515Taft Ave, Loveland,$248,000, home• Trent & Cita Lauden

from Robert Shipe, 1506Farmland St, Loveland,$262,500, home• James Getches from

Karlina White, 1156 E 4thSt, Loveland, $89,000,home• Charles Zitting from

Donald Archuleta, 1005Blue Spruce Dr, Loveland,$170,000, home• Daniel & Melinda

Adams from Bolt LLC,3780 Larkspur Dr, Love-land, $209,700, home• Paradise LLC from

Richard Doll, 2653 Se-dona Hills Dr, Loveland,$551,000, home• Jeff Edmonds from

Fannie Mae, 175 CarinaCir Unit 103, Loveland,$140,700, condo• Gayle Bishop from Ar-

lene Gabriel, 1911 BlancaCt, Loveland, $549,900,home• Monterey LLC from

Glen Development LLC,1062 Prism Cactus Cir,Loveland, $85,000, home• Keith & Cami Ruh-

man from Geraldine Ham-rock, 3314 Apple Ave,Loveland, $195,000,home• Dennis Parker from

Ralph Kemmer, 1372Lavender Ct, Loveland,$148,500, home• Paul Goebel from

Lakeshore CondominiumsLLC, 4905 Hahns Peak DrUnit 101, Loveland,$140,800, condo• David & Julie Ewert

from Marian Thomas,2425 Winter Park St,Loveland, $181,000,home• Keith & Beverly Walk-

er from US Bank, 3245Coal Creek St, Loveland,$152,500, home• Peter Krump from

Weinland Homes Inc,3402 Creede Ct, Love-land, $360,000, home• Bruce Hebert from

James Dahlkemper, 1991Grays Peak Dr Unit 202,Loveland, $145,000, con-do• John Cohen from Bar-

bara Gygax, 520 E 5th St,Loveland, $140,000,home• Jacobus & Kimberly

Demooy from TeresaJohnson, 1126 S TylerAve, Loveland, $163,000,home• Christopher & Soon

Schwab from LovelandMidtown Development I,1934 Virgo Cir, Loveland,$228,500, home

Berthoud• John Reinhardt from

Jon Eggers, 2836 CenterRidge Dr, Berthoud,$620,000, home• Ivar & Donna Larson

from Firstier Bank, 1216

1st St, Berthoud,$750,000, home

Estes Park• Patricia & Bruce Mc-

nichol from Droll Real Es-tate Holdings LLC, 2625Marys Lake Rd Unit 19b,Estes Park, $269,000,condo• Janet & Timothy

Stout from Hollis Hamp-ton, 1213 Chasm Dr,Estes Park, $346,000,home• Mark & S French from

Jason Morrison, 758Alpine Dr, Estes Park,$650,000, home• Joan Fontaine from

Tom Thomason, 855 FawnLn, Estes Park, $175,000,home• Trust from Patricia Ka-

siska, 800 Macgregor AveUnit D2, Estes Park,$282,000, condo• David Loy from Emory

Smith, 2625 Marys LakeRd Unit N203, Estes Park,$275,000, condo• Michael Williams from

Wells Living Trust, 2414th St, Estes Park,$125,000, home• Jon & Debra Ford

from Robert Amato, 843University Dr, Estes Park,$259,000, home

Johnstown• Marvin & Rosalie Carl-

son from Midtown HomesJohnstown LLC, 4318Onyx Pl, Johnstown,$197,900, home• Logan & Allison

Thomas from OakwoodHomes LLC, 3761 Black-wood Ln, Johnstown,$207,200, home• Don & Janice Burris

from Donald Beauregard,

420 Wyss St, Johnstown,$290,000, home• Kenneth & Joni

Lafleur from PrecisionHome Buildings LLC,4390 Thompson Pkwy,Johnstown, $550,000,home• Steven & Sarah Tracy

from Saint Aubyn HomesLLC, 175 Glenroy Dr,Johnstown, $269,600,home

Milliken• Michael & Patricia

Row from JPMorganChase Bk, 780 Bobcat Dr,Milliken, $169,700, home• Victoria Lujan from

Rocky Mount InvestGroup LLC, 201 N OliveAve, Milliken, $130,000,home

Windsor• Brian & Darla Mcfee

fromWilliam Bray, 407Fieldstone Dr, Windsor,$263,000, home• Daniel Dotson from

Ed Duggan, 215 N 6th St,Windsor, $135,000, home• Todd & Cheri Robbins

from Saint Aubyn HomesLLC, 623 Goose Lake Ct,Windsor, $298,800, home• Lynn & Jeanne Kleeb

from John Edwards, 1354Saginaw Pointe Dr, Wind-sor, $183,000, home• Ridgeway Services

from Highland MeadowsDevelopment I, 6099 BayMeadows Dr, Windsor,$277,500, home• Mark & Jamie Bailey

from Highpoint Vista LLC,5754 Pineview Ct, Wind-sor, $52,000, home• Megan Borton from

Brandon Leagjeld, 900Nantucket St, Windsor,

$161,000, home• Hillside Inc from

Ridgeway ConstructionServices, 6165 Bay Mead-ows Dr, Windsor, $55,500,home• Heather Hernandez

from Mastr AlternativeLoan Trust 2, 600 WalnutSt, Windsor, $167,000,home• Joseph & Emm Arm-

strong from MelodyHomes Inc, 618 Lanley Dr,Windsor, $260,000, home

Foreclosures• Borrower: Robert &

Anne Park, Lender: UsBank National Associa-tion, Amount: $289,564,Property: 5322 GetawayDr, Berthoud, Filed:12/05/11• Borrower: Armando

Miramontes, Lender:Gmac Mortgage LLC,Amount: $262,909, Prop-erty: 644 Munson Ct,Berthoud, Filed:12/05/11• Borrower: Nicholas,

Linda & Roger Harris,Lender: Wells Fargo BankNa, Amount: $194,402,Property: 1222 Aspen Dr,Berthoud, Filed:12/06/11• Borrower: Stanley

Mars, Lender: The BankOf New York Mellon,Amount: $206,880, Prop-erty: 531 Highland Ln,Estes Park, Filed:12/01/11• Borrower: Seon John,

Lender: John E Reid AsTrustee, Amount:$200,000, Property: 1220Big Thompson Ave, EstesPark, Filed: 12/01/11• Borrower: Alan As-

pinall, Lender: Citimort-

gage Inc, Amount:$421,429, Property: 730East Ln, Estes Park, Filed:12/05/11• Borrower: William

Jesser, Lender: Us BankNational Association,Amount: $140,270, Prop-erty: 930 N 1st St, John-stown, Filed: 12/07/11• Borrower: Kevin &

Jeanie Coleman, Lender:The Bank Of New YorkMellon, Amount:$314,016, Property:20064 Cactus Dr, John-stown, Filed: 12/07/11• Borrower: Robert Put-

nam, Lender: Pnc BankNational Association,Amount: $91,030, Proper-ty: 1630 Jackson Ave,Loveland, Filed: 12/01/11• Borrower: Maria Cano

Rodriguez, Lender: MetlifeHome Loans, Amount:$180,032, Property: 93822nd St Sw, Loveland,Filed: 12/05/11• Borrower: Norman

Hardin, Lender: Bank OfAmerica Na Successor,Amount: $144,598, Prop-erty: 1236 Lavender Ct,Loveland, Filed: 12/05/11• Borrower: Dustin

Thompson, Lender:Metlife Home Loans,Amount: $189,021, Prop-erty: 3060 Champion Cir,Loveland, Filed: 12/05/11• Borrower: Paige

Schmidt, Lender: GmacMortgage LLC, Amount:$49,623, Property: 2717Mango Pl, Loveland, Filed:12/05/11• Borrower: Donald &

Barbara Bagwell, Lender:Jpmorgan Chase Bank Na-tional Assoc, Amount:$113,980, Property: 2515Hillrose Ct, Loveland,

Filed: 12/05/11• Borrower: Johnnie

Morgan, Lender: TheBank Of New York Mellon,Amount: $162,948, Prop-erty: 4463 Sunshine Cir,Loveland, Filed: 12/06/11• Borrower: Sheri

Thomas, Lender: Jpmor-gan Chase Bank NationalAssoc, Amount: $109,016,Property: 1566 Oak CreekDr, Loveland, Filed:12/06/11• Borrower: Elias & Ir-

ma Orozco, Lender: TheBank Of New York Mellon,Amount: $167,294, Prop-erty: 624 E 41st St, Love-land, Filed: 12/06/11• Borrower: John Dug-

gan, Lender: Cenlar Fsb,Amount: $171,877, Prop-erty: 629 24th St Sw,Loveland, Filed: 12/06/11• Borrower: Jerry Hoff-

man & Shelley Harvey,Lender: Wells Fargo BankNa, Amount: $221,790,Property: 2716 Brecken-ridge Pl, Loveland, Filed:12/06/11• Borrower: Bethanie

Hensel-Vanzant, Lender:The Bank Of New YorkMellon, Amount:$148,256, Property: 758 SJuniper Ct, Milliken,Filed: 12/01/11• Borrower: Daniel &

Deanna Greenwalt,Lender: Deutsche BankTrust Company Americas,Amount: $467,662, Prop-erty: 1735 Ridge West Dr,Windsor, Filed: 12/05/11• Borrower: Raymond &

Christine Grilley, Lender:Public Service CreditUnion, Amount: $20,672,Property: 911 Mesa Ct,Windsor, Filed: 12/07/11

If the lender does not get fully paidoff, it can take an additional step af-ter the foreclosure and ask a judge toissue a judgment for that difference,a deficiency judgment. A borrowerthen runs the risk that the lendermight pursue him or her to garnishthe borrower’s wages or find assetsthe borrower might have that couldsatisfy what is owed. That’s what yourdaughter fears most because shecould lose her job.So far, most lenders have not pur-

sued borrowers after a home is fore-closed upon. But in some states,lenders can still obtain a deficiencyjudgment years after the foreclosure.But if the lender does obtain the defi-ciency judgment, not only can thelender take action against the bor-rower, the lender can sell that defi-ciency judgment to a bill collector

and that collection company can pur-sue the borrower.First, find out whether your daugh-

ter’s state permits deficiency judg-ments. If it does, your daughterwould be better off trying to sell thehome, even if she does it in a shortsale. In a short sale, there is a betterchance that the lender will agree towaive any right to pursue a deficiencyagainst her.Whether your daughter decides to

walk away from the house or pursuesa short sale, her credit score andcredit history would suffer.According to FICO, a major player

in the credit score industry, a borrow-er who is 30 days late on his or hermortgage will see a drop of 60 to 100points in his or her credit score. If thedelinquency goes to 60 or 90 days,there are additional drops in the cred-it score. And, if you go the short saleroute, you might see an additionaldrop on your credit score, especially ifthere is a deficiency reported on thesale.If your daughter has a credit score

of about 720 and she walks away fromthe home, she should expect a dropin her credit score to about 570; ifshe goes the short sale route, hercredit score could drop by the sameamount depending on the deficiency.But let’s hope there is a refinance

in your daughter’s future so she canafford to stay in her home. What sheneeds to do now is talk to a goodmortgage lender or mortgage brokerto evaluate her options.Question: In 2003, I refinanced my

home with a $100,000 15-year mort-gage at 5.25 percent. My balance nowis about $50,000 and I have six yearsleft on my loan.I am considering two options: to re-

finance the current balance or takeout $100,000 in equity in a new refi-nance loan. Which is the betterchoice?Answer: You can try to refinance

your current loan, but you may findthat the costs to refinance the$100,000 might be high relative tothe benefit you will receive. While youmight get a big break on the interest

rate (your rate on a 10-year mortgagecould be as low as 3 percent), a goodshare of your monthly mortgage pay-ments now go to pay down the bal-ance on your loan.You are over halfway into your loan

term. At least half of every paymentgoes toward paying down your debt.With a new loan, you’d start payingmostly interest and would add yearsto the loan term. The question is whywould you want to do that?If you need money to fix or upgrade

your home, then you can make a deci-sion about whether to take out a larg-er loan on your home. You should talkto a good mortgage lender or brokerto determine whether you would beable to take equity out of your home.In the current state of the housing

market, you’d want to have a goodsense of your home’s value. You’dprobably want to make sure that yournew loan won’t exceed 80 percent ofthe home’s market value. These daysyou want to avoid taking out an FHAloan or even a loan with private mort-gage insurance.

FHA loan costs and loans withmortgage insurance have gone upsubstantially and you have to factor inthese costs in deciding whether totake out a higher loan on the proper-ty or even if you have the ability totake out money from the propertyand get a larger loan on the home.Back in the boom days of the stock

market, we would get questions as towhether homeowners should borrowagainst their homes to invest in Inter-net stocks. At the time, we told peo-ple that it probably wasn’t in theirbest interests to take out home equi-ty to invest in stocks of any sort, letalone Internet start-ups.Later, people wanted to take out

money from their homes to invest inthose same homes, buy cars, take va-cations or pay for their kids’ educa-tion.Borrowing against your equity car-

ries risks. You need to have a good un-derstanding of what you need themoney for, and weigh the risks of tak-ing the equity and using it elsewhere.

E4 Saturday Reporter-Herald December 17, 2011

H& Featured Home PlanRE

Landry has European ambiance

Failed investmentproperty is morethan foreclosureSTEVE BUCCIBANKRATE.COM

Dear Debt Adviser: I amemailing you in hopesof getting some honest

advice. I recently owned a con-do, and I financed it with twomortgages. I used a first mort-gage and a home equityloan/line of credit. This wasnot my primary residence. I’mone of the many people whotried to rent out my condo be-cause I couldn’t sell and breakeven. Long story short: Thebank foreclosed three weeksago. I continue to get threat-ening calls from the bank con-cerning my equity loan. So myquestion is: What should I doabout the loan balance? I don’thave the money to pay it off.Will they take me to court, gar-nish my wages or just keepcalling me? What’s your ad-vice? Thanks in advance. —AdamDear Adam: If this wasn’t

your primary residence, thenI’ll assume you bought thiscondo as an investment hopingto make money. When an in-vestor plunks down money onan asset, it is often said theyare making a bet. In your case,you bet and lost. As a result,the rules that govern unpaidmortgage debts in your situa-tion are different from those ofa homeowner who buys andloses a home he or she boughtas a primary residence.Expect your lender to come

after you for the deficiency bal-ance after the property is sold.Yes, they will sue you and go af-ter wages to the extent allowedby state law. If you were in anonrecourse state (Alaska, Ari-zona, California, Connecticut,Florida, Idaho, Minnesota,North Carolina, North Dakota,Texas, Utah and Washington),you could not be sued for thedeficiency. In addition, statelaws vary on what actionslenders can pursue in collect-ing from a homeowner for defi-ciency balances once a homehas been foreclosed upon, issold in a short sale or other-wise falls short of the full loanbalance due.

In your state of Georgia, thelender must file an applicationto collect a deficiency balancewith the court along with proofthe home has sold. The lendermust do this no later than 30days after the home sells in or-der to collect the debt. If morethan 30 days have expired afterthe sale of the home, the appli-cation would be thrown out bythe court. The trouble is,banks may hold on to thehome for months or years aftera foreclosure before the homeis sold. As a result, it is impor-tant to stay in touch with yourlender or a Realtor so you willknow when the home is soldand if the 30 days is up. Anyconversations with the bankwill likely continue to be un-pleasant because you don’thave the money you owe them.Still, it is to your advantage tokeep the communication linesopen.As to what you might do

about the debt, my suggestionis to try to come to some sortof payment plan with the bank.Also review your other assetsto see if you can borrow onthem or sell them outright tomake a dent in the bill. I spoketo Matthew Harvey, supervisorfor the Homeownership Preser-vation Foundation at TakeCharge America. He recom-mends seeking the advice of areal estate or bankruptcy at-torney to learn all the possiblelegal ramifications and youroptions due to the foreclosure.Remember, you will probablyhave tax considerations on anyforgiven amounts for your firstor your second mortgages. TheMortgage Forgiveness Debt Re-lief Act of 2007 does not applyto investments or second resi-dences. So, even if you escapethe bank’s collectors, you’llstill have to deal with the Inter-nal Revenue Service to pay ahefty tax bill as a result of theforeclosure — and the IRS is acreditor you don’t want to owe.The bottom line is you can

almost certainly expect yourlender to attempt to collectthe deficiency balance on yourmortgages. Try to come toterms with the bank or exploreyour legal remedies.

MCCLATCHY-TRIBUNE

Despite problems plagu-ing the U.S. housingmarket such as tum-

bling values, record foreclo-sures, and tight credit for buy-ers, 74 percent of Americansbelieve home buying is a goodinvestment. And 81 percentsaid it’s still part of the Ameri-can dream, according to a newsurvey from Yahoo! Real Es-tate. The survey, which polled1,500 current and aspiringhomeowners, plus renters,found that while few (13 per-cent) currently live in theirdream home, a majority (55percent) feel it’s attainable.American optimism about

housing as a good investmentcomes despite years of marketturmoil that have had a wideimpact on society. One inthree Americans knows some-one who has experienced aforeclosure, according to thestudy.

MOST WANTED HOME FEA-TURE: ENERGY EFFICIENCYWhile having a large room

with a view is still desirable,the dream home is no longer asupersized McMansion. Oursurvey found that a “green,”energy-efficient home builtwith “sustainable” materialstops the ‘most wanted’ list. Nolonger in desire for home buy-ers: gated communities, urbanlocations, and castle stylehomes.

DESPITE FORECLOSURES,PEOPLE STILL WANT TO BUYWhile the rise in foreclosed

homes has left a lot of Ameri-cans waiting years to buyagain, most (65 percent) areopen to buying a foreclosedproperty — noting key bene-fits of purchasing more homefor less money. However, 42

percent felt the risk of toomany unknowns is a majorconcern for buyers.

GOVERNMENT SHOULD DOMORE TO HELP HOME-OWNERSThe survey found that most

Americans think the govern-ment should be doing more tohelp out homeowners with 51percent saying the govern-ment should pass further legis-lation. When asked how muchof an influence will the 2012Presidential Election have onthe housing market, 31 per-cent believe that it will have alarge influence Democrats faresomewhat better than Republi-cans as the party most recep-tive to helping homeownersweather the downturn.

REASONS FOR MOVINGRenters are more likely to

move for more space (56 per-cent), while homeowners werelikely to move for a home thatbetter suits their life stage (42percent).

MOST RENTERS PREFER TOOWN, BUT CASH IS A BIGBARRIER TO PURCHASEWhile 47 percent of renters

believe they will own theirdream house one day, moneyfor a down payment is thebiggest barrier. 19 percent ofrenters say the reason theyrent is because they don’twant the hassle of fixing thingsin a home themselves.

FLIP THIS HOUSEAmajority, 80 percent, of

buyers in today’s market arelooking for a primary resi-dence and nearly half, 45 per-cent, of those who plan to in-vest hope to capitalize on themarket and flip the propertyfor a profit.

Top priority in dreamhome: Energy-efficiency

ASSOCIATED DESIGNS

Brick veneer and classickeystone arches lend aEuropean ambiance to

the Landry. This home offersmore than 3,300 square feetof indoor living space, plusthree outdoor patios, and athree-car garage.A recreation room over the

garage is the only living spaceon the second level, so the restof this plan could easily beadapted for wheelchair acces-sibility.Ceilings are lofty, starting

with the 12-foot-high coveredporch, foyer, and dining room,to the foyer’s right. Both thefoyer and the dining room flowinto the even loftier vaultedliving room. Light washesdown into this large openspace through skylights, andmore spills in through a stackof wide windows.A long conversation bar rims

the kitchen, which is other-wise open to the living room.Working at the kitchen sink,you can talk with people seat-ed at that bar or in the livingroom, while keeping an eye onthe nook, patios and backyardas well. Other kitchen ameni-ties include: lazy Susan shelv-ing, a work island with built-incook top, and two pantries.In the nook, a desk and

shelves hide behind folding

doors. Nearby are anotherdeep storage room, a largeutility room, a full bathroomand a guest suite with a walk-in closet. A door into thethree-car garage is throughthe utility room at the end ofthe hall.On the opposite side of the

Landry, the owners’ suite fillsthe rear, and secondary bed-rooms are up front. In additionto a luxurious bathroom with aspa tub and oversized shower,

the suite boasts two largewalk-in closets, one nearlytwice the size of the other. AFrench door leads out onto acovered patio that could beprivate.Visit AssociatedDesigns.com

for more information or tosearch our home plans. A re-view plan of the Landry 30-665, including floor plans, ele-

vations, section, and artist’sconception, can be purchasedfor $25. Our home plan cata-log, featuring more than 550home plans, costs $15. Bothare available online, by mail orphone. Add $5 s/h. AssociatedDesigns, 1100 Jacobs Dr., Eu-gene, OR 97402, (800) 634-0123.

Saturday Reporter-Herald December 17, 2011 E5

www.reporterherald.com/e-edition

‘Going out of town?Don’t miss your local news.

w

ANGIE HICKSMCCLATCHY-TRIBUNE

Dear Angie:What replacement win-dows are the best in terms of looks,durability, warranty and reasonableprice? I don’t want wood but like thewood-like looks, so I originally consid-ered fiberglass. That turned out to bequite expensive so I’m now looking foran alternative, perhaps a reasonablypriced vinyl or a more affordable, butgood quality fiberglass.—Misha K., Potomac, Md.Dear Misha: If you want to add new

windows, but still want the look and feelof wood, fiberglass is probably your bestbet; but as you found out, it’s not inex-pensive. You do have options, though.High-end vinyl windows have improved

in aesthetics and are less synthetic look-ing than before, plus they often outper-form their fiberglass counterparts interms of energy efficiency. They still,however, don’t offer the look or feel ofwood.You might be better off adding high-

quality secondary storm windows with alow-emissivity glass to your existing win-dows, if the look and feel of wood is trulya high priority. They’ll offer the energyperformance of many replacement win-dows, and often, improved noise reduc-tion. Storm windows can be a good op-tion for homes in a historic district be-cause of their flat, narrow profiles andrelative concealability.There are a variety of composite win-

dows on the market that also look likewood, but you’ll likely find the cost issimilar to fiberglass.Affordability is almost always a con-

cern when shopping for windows, but it’simportant to avoid low-performing vinylwindows that won’t offer long-term ener-gy savings. You want a vinyl window witha good air infiltration rating. The mini-mum standard by the American Archi-tectural Manufacturer’s Association (AA-MA) is leakage of less than .30 cubic feetper minute. However, .10 or lower is ide-al for cold-weather climates. The lowerthe number, the better.

That is also true of the U-value, whichmeasures the window’s rate of heat loss.To qualify for the Energy Star federal taxcredit of 10 percent of the cost of re-placement windows up to $200 double-pane glass windows require a U-value of.30 or lower.You also want a window with a design

pressure rating between 35 and 45. Thedesign pressure rating represents howwell the window drains water and howstrong the window frame is. In this case,the higher the number, the better theframe, the more rain drainage it canwithstand, and the more wind pressure itcan endure.When you’re shopping around for win-

dows, get bids from at least three differ-ent reputable contractors. The salesper-son should be able to bring samples ofhis or her products and provide you withpricing and the ratings for each windowtype in writing, so you can make a deci-sion that fits within your style and bud-get. Avoid hiring companies that won’tprovide the AAMA ratings.

ADAM VERVYMERENMCCLATCHY-TRIBUNE

A house lit up withChristmas lightsis a beautiful

sight to behold. Butstringing lights acrossyour roof and aroundyour home can be a realsafety hazard if you’renot careful. So beforeyou flip the switch todazzle friends and fami-ly with your spectacularlight show, take a fewmoments to runthrough a quick safetychecklist.• Before you string

up a single strand oflights, carefully checkthem for cracked cords,frayed ends or looseconnections.• The combination of

shorts in electricallights and a tinder-drytree can be deadly.There are 250 Christ-mas tree fires and 14 re-lated deaths each year,according to the U.S.Fire Administration. Sokeep your tree well-wa-tered. Not only will itstay fresh and green,but it might also keepyour house from burn-ing down.• Modern lights have

fused plugs, preventingsparks in case of a shortcircuit. Ditch oldstrands of lights thatdon’t have fuses and geta set of newer, saferlights.• If bulbs have burned

out, replace them rightaway, but make sure youuse the correct wattagebulbs.• Water and debris

can get into outdoorsockets, so make sureoutdoor lights areplugged into a groundfault circuit interrupteroutlet to reduce therisk of shorts andshocks.• Keep an eye on ex-

tension cords, as theycan occasionally over-heat. Just touch-testthe cord. If it’s hot, un-plug it.• Don’t use tacks,

nails or screws to hanglights, which can piercethe cable and becomeelectrified. Use insulat-ed hooks instead.• When running ex-

tension cords along theground, make sure toelevate plugs and con-nectors with a brick tokeep snow, water anddebris out of the con-nections.

• Tape down anyground-level extensionscords to prevent peoplefrom tripping overthem.• Check to make sure

lights have been ratedby a testing laboratory.You can see a list of fed-erally recognized labson the OccupationalSafety & Health Admin-istration’s website.• Not all lights are

rated for outdoor use.Indoor lights often havethinner insulation,which can becomecracked and damagedwhen exposed to the el-ements outdoors. Somake sure the ones youstring up on the housebelong out there.• Don’t leave Christ-

mas lights runningwhen you go to bed atnight or when you leavethe house.• When you put your

lights back into storageafter the holidays, makesure to put them in awell-sealed container toprevent possible waterdamage and to blockhungry rodents lookingto turn the cords intolunch. My final advice?Be careful with ladders.

HolidayLightSafetyTips

Ask Angie: Finding the bestreplacement windows

Home how-to for the simple fixerARTICLE RESOURCE ASSOCIATION

Eventually, that household project that youhave been putting off cannot be avoided anylonger. But if you’re like most homeowners,

you will quickly give up on the DIY route and settlefor something less daunting, like calling in a pro-fessional.Before you sell yourself short, consider following

some of these simple DIY do’s and don’ts to maketackling your home improvement project a littlemore manageable and affordable.

DO RECOGNIZE YOUR LIMITSIt’s OK if you can’t handle the entire kitchen re-

model on your own. Identify what components youcan tackle solo before getting quotes for the pro-ject. Handling things like paint jobs and new cabi-net hardware can help bring down overall costs.More often than not, the right tools also make abig difference. Also, it’s OK to ask a friend or fami-ly member for help — two hands are better thanone. Just be sure to return the favor when thetime comes.

DON’T UNDERESTIMATE THE POWER OF GLUEFrom installing tile backsplashes and in-wall

cabinets to sealing gutters and downspouts, high-performance adhesives are a must-have for everyhome. The Loctite brand is suitable for multipleDIY uses, including upgrades and repairs. So for-get about tossing that broken lamp to the curb orreplacing that loose drawer handle. A little gluegoes a long way. To learn more about what adhe-sive is right for your project, visit the Loctite Prod-uct Advisor at www.loctiteproducts.com/product_advisor/.

DO DEVELOP A MENTAL PICTUREBefore rushing into home projects, take the

time to really envision what you want out of therenovation or update. Is the goal to make yourkitchen more modern? Are you looking to maxi-mize space in the bathroom? Pictures can helpbring these goals to life. Stock up on magazinesand pull out any photos that capture the essenceof your project.

DON’T RUSHYou are all familiar with old adage “haste makes

waste.” Haste also can be costly. Do your home-work before tackling home updates. Decide whereto begin and carefully plan each step of the pro-cess. This includes taking accurate measure-ments, using effective tools and comparing priceson building materials.Keep in mind that you won’t do yourself any fa-

vors by shrugging off advice or not planning in ad-vance. Remodeling industry professionals reportthat between 25 and 30 percent of their workcomes from fixing DIY debacles. While there aresure to be a few hiccups along the way, you willdiscover a new sense of pride and empowermentonce your project is completed.

Northern ColoradoENERGY STAR® Homes

NoCOEnergyStarHomes.org

As a home buyer we know you will feel and experience the difference.

An ENERGY STAR® home provides you the home owner:

• Better Comfort • Healthier Indoor Air• Enhanced Durability • Lower Energy Bills

Visit these and other ENERGY STAR® Builders today

An ENERGY STAR® homeis a better built home

Learn more at NoCOEnergyStarHomes.org

• Midtown Homes at Boise Village North is centrally located in Loveland, just minutes from I-25and US Highway 34 and is a unique opportunity to find new home with prices starting in the$170’s. The community is connected to the city trail system for great recreational opportunitiesand is minutes from Downtown Loveland. At Boise Village North you can find homes with lowmaintenance yards as well as homes with large yards and up to four car garages. The salesoffice is open 10-6 daily at 1899 E 11th St, Loveland, CO.

• Midtown Homes at Rocksbury Ridge is a unique place where you can find quality construction ataffordable prices with homes starting in the $190’s. Rocksbury Ridge is a close knit communityin a subdivision with lots of amenities including several miles of walking trails, a privatecommunity lake, as well as abundant greenbelts and common areas. Rockbury Ridge hasconvenient access as the first subdivision ½ mile east of Interstate-25 into Johnstown at Exit252. Model home is at 4312 Onyx Place, Johnstown, CO and is available to view by appointment.

• Thompson Overlook is one of the only subdivisions in Colorado to offer an entire subdivision of Energy Star Qualified homes with pricesstarting as low as the $170’s. Our MidtownGreen building program offers the government backed Energy Star label, lower utility bills,lower maintenance, and better protection against cold, heat, drafts, moisture, pollution, and noise. Thompson Overlook offers 6 floorplans including ranch, multi-level, and duplex homes on a variety of lots ranging from small, lot maintenance lots to large single familylots. Visit Thompson Overlook at 2208 Sopris Circle, Loveland, CO and is available to view by appointment.

www.newmidtownhomes.com • (970) 456-4600 • e-mail sales@newmidtownhomes.com

At home in The Overlook, you’ll feel out in the country

but a mere 10 minutes away is the Thompson Valley

Towne Center, home to a large supermarket, a variety of

restaurants, and a multitude of services you’ll be glad are

close by. Travel 10 minutes in a slightly different direction

and you’re in downtown Loveland with interesting antique

stores, funky boutiques, a host of restaurants, and the

historic Rialto Theatre for your evening entertainment. For

serious shopping, the Centerra complex at Highway 34 and

I-25 is only 20 minutes from The Overlook where you can

find just about everything you need. Located off West

Colorado Road 20, West 1st & Cove Drive in Loveland.

The Overlook at Mariana

E6 Saturday Reporter-Herald December 17, 2011

CAROLO'MEARACSU EXTENSION

Want a wreath that’s the perfect compli-ment to your decor this season? If thestore bought circlet seems somehow

dull, jazz up that holiday symbol with personaltouches that transform it from blah to ahhh.Wreaths with character are a snap, once you

start thinking outside the pinecone, bow, and

bell box. Whether you do it yourself or have aflorist do it for you, customizing your wreathlivens up your décor with whimsy, adds formalflair, or gives visitors a peek into your personali-ty.Grab some florist wire, a hot glue pan and get

creative. Here’s how.Get pizzazz by adding contrasting textures.

Seeded eucalyptus or magnolia leaves smoothspiky edges, holly adds a traditional touch, orlong strands of bear grass provide movement.

Think in terms of shiny versus matte or soft ver-sus hard to make things interesting. Bundles ofcinnamon sticks tied with ribbon add seasonalaccent, and dried fruit slices provide color.To make your own dried fruit slices, you’ll

need a dehydrator, said Anne Zander, Family andConsumer Sciences Agent with Colorado StateUniversity Extension. “Drying fruit in the oventakes too much energy, since it’s on for eight totwelve hours. Plus you’d need an oven that canbe turned down really low, lower than 200-degress, and have a fan blowing into it thewhole time so the fruit doesn’t burn.”Slice oranges, limes, lemons or other citrus

into quarter-inch thick slices, laying it on itsside so the slices include all the segments. Keep

slices uniform for best drying results; if thethickness varies greatly, some slices won’t dryevenly. Dehydrate the fruit for eight to twelvehours, checking slices for doneness. The fin-ished product should be dry but still pliable.Finding accessories to primp your wreath can

be as simple as walking through the neighbor-hood. Look for dried flowers, berries, or unusualevergreens. Seed pods of trees such as long,slender catalpa, curly honey locust or bean-likeredbud offer change from traditional pinecones.

Carol O’Meara is with CSU Extension in Boul-der County. Contact her at 303-678-6238 orcomeara@co.boulder.co.us.

Customize your wreath