There’s a marketing blitz underway aimed at the homeowner in denial — the one missing mortgage payments, dodging calls from the lender and hoping for the best.
This month, several groups have launched initiatives to educate the public about mortgages. The campaigns range from the traditional to the quirky. Most are heavily funded by the mortgage industry. All focus on stemming a recent surge in foreclosures that threatens to destabilize entire communities, if not the U.S. economy.
Gunston Manor was once a rustic community with “no trespassing, firearms in use” signs. Today, as Peter Weyland, a 31-year resident, entertains neighbors on his multilevel deck overlooking the Potomac River, he describes Gunston Manor as “the jewel of Fairfax.”
It’s an unpolished jewel, though, which is part of Gunston Manor’s charm.
NEW YORK — If your house is flooded during a hurricane, is the damage covered by your homeowners insurance policy? Will it cover a motor scooter stolen from the back yard? Or your son’s possessions when he moves into his college dormitory?
The answer to all those questions is generally “no,” though a surprising number of homeowners don’t know that, according to a study by the National Association of Insurance Commissioners. That means many homeowners may not be carrying the right insurance to protect against storms, fire and other perils.
Q: DEAR TIM: I think a tile backsplash would be a great way to make my bathroom look better. Do you have to buy special backsplash tile? I’m open to any tile ideas, including a glass tile backsplash. If you were installing a ceramic tile backsplash, how would you do it, and what pitfalls would you avoid? Do I need special tools or skills? — Amber C.
A: DEAR AMBER: Tile backsplashes in bathrooms or kitchens are great. I like them for all sorts of reasons. They are almost entirely waterproof, and because tiles come in all sorts of textures, colors and patterns, a tile backsplash can become a dramatic focal point. This is especially true when the countertop is natural stone, such as granite or marble, or a man-made stone composite.
When Bo Barefoot gives directions to his house in Bethesda, he stops with the turn onto his street. After that, he says, “You’ll see the banana trees.”
In fact, when you get to the house, it is hard to see the 1907 structure because of the tall, swaying banana trees; the brugmansia with their long, drooping, trumpet-shaped flowers; the hibiscus; the fuchsias; the castor beans with their giant palmate leaves; the sago palm; the Norfolk Island pines; the gardenias — in short, the tropical forest that Barefoot, a building contractor by trade, has nurtured in his yard every summer for the past eight or nine years.
Q: We bought our house about a year ago and recently discovered a number of defects that were not disclosed to us by the sellers. For example, we were told that the electricity had been upgraded, but it had not. We were also told that there was never a water problem in the basement, but some recent storms have flooded the downstairs. We have reason to believe that the sellers flat-out misrepresented facts in the disclosure form they gave us.
It will cost about $9,000 to repair these problems. We sent a demand letter to the sellers, and they have denied making any false statements. Our sales contract provides that any dispute between buyer and seller must first be mediated. Accordingly, we went to mediation, but without success.
What kind of financing is possible for home buyers and sellers worried about rising mortgage rates, Wall Street bond-market jitters and soft home prices?
Plenty. Although certain aspects of today’s post-boom marketplace may look scary on any given day, most of the traditional problem-solving tools of real estate finance are still at your disposal, whether you’re a buyer or a seller.
A widespread view among bank regulators, community groups and some legislators is that all home mortgages should be “affordable” and that government should do what is necessary to bring this about.
Last week, I looked at a proposal designed to ensure the affordability of adjustable-rate mortgages. It would require lenders to qualify ARM borrowers not at the initial interest rate but at the fully indexed rate, which more closely approximates the rate at the first and second rate adjustments.
Q: DEAR BOB: Our 25-year-old daughter just landed her first job in New York City. Her pay is dismal, but she has about $80,000 for a down payment on a condominium or cooperative apartment in Brooklyn. My husband and I want to help her. But we don’t think co-signing a mortgage is a good idea. Can we be her mortgage company and lend her the mortgage money at market rate? I fear she won’t qualify for a loan, as she earns only $32,000 annually.
– Susan K.
Grab a cup of coffee. It’s time to read the mail. We have received some interesting observations from readers of this column during its first two months. I have edited the comments for clarity and brevity.
We have heard from several folks who are deeply in love with their kitchens. Lori McCarthy of Leesburg wrote to defend the honor of her British-made Aga oven, which can cost about $20,000. I had written about one I had seen in a Great Falls model home and called it “way over the top.” McCarthy begged to differ.