Always beautiful, the following shrubs should be taken into consideration when you want to improve your home’s landscaping. These shrubs were found on almost every homestead owned by our grandparents. They have not fallen out of favor for any reason, only forgotten in the excitement that came with the many new cultivars that are now available.

• Hydrangea: Tolerant of most soil types but sensitive to drought and hot sun, this shrub has many flower colors available and the newer ‘Endless Summer’ series bloom all summer long.
• Spirea: Tolerant of most soils, these hardy deciduous shrubs come in many colors and show mounds of flowers come springtime that last all summer long.
• Lilac: Hundreds of cultivars are available, but most prefer neutral soil and some shade. Known for their heady scented flowers, they make great vase cuttings.
• Viburnum: With their beautiful springtime display, these smell wonderful and are favored by birds. If you do choose one, leave room for expansion as they tend to spread wider than their height.
• Hibiscus:  Rose-of-Sharon never disappoint with their gorgeous late-summer flowers. They are very adaptable and easy to grow.

With the large number of foreclosures that are occurring all over the United States, people should know the many options they have to avoid one. Here are additional options (Part II.) for foreclosure:

• Rent the Property: If your mortgage payment is low enough that market rent will cover it, this option will allow you to keep your property indefinitely.  
• Deed In Lieu Of Foreclosure: Sometimes known as a “friendly foreclosure”, because it allows the homeowner to return the property to the lender. It does require lender approval, and the homeowner must vacate the property.
• Bankruptcy: If the homeowner has non-mortgage debts whose payments are causing them to fall short of paying their mortgage, a personal bankruptcy will eliminate these debts. Bankruptcy can be very costly.
• Refinance: If homeowner has sufficient equity in the home and their credit is still good, a refinance is a possibility. In some cases it may lower payments, but it is an expensive process.
• Service members Civil Relief Act (Military Personnel Only): If a an active member of the military is experiencing financial distress, they could qualify for lower payments on all their consumer debt as well as mortgage payments.

Today in the United States there are more and more homeowners facing the devastating financial challenge of foreclosure. Many times it can be avoided. Here are some options (Part I.) for foreclosure, along with a short explanation of each.

Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale.

Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option.

Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications.

Considering a short sale can be a daunting task if you are not armed with all of the necessary information regarding this type of transaction. Following are additional mistakes or problems that can be avoided if you know what to look for.

• Time: There never seems to be enough of it when conducting a short sale. Your agent needs to understand the local foreclosure laws so that you have an estimated timeline. Also, be sure that your agent can communicate effectively with your lender so you can stall a foreclosure by getting more time to negotiate a short sale. Always provide your agent with accurate information as to how many payments you may have missed and any correspondence you have from your lender.
• You must submit the deal properly: Following the directions that you receive for submission is imperative. If you are asked to fax your file, then fax the file and send a hard copy in the mail. If they ask for two copies, send two, and so on. If you have a contract and have gathered all of your information, the last thing you want is for no one to see it and the deal falls apart.
• The buyer’s offer is too low: A short sale is not a fire sale! A lender still will only approve a deal that is more attractive to them than a foreclosure. Make sure you present only the most properly negotiated offers.
• The buyer’s contract is not strong enough: You may find yourself with offers from unqualified buyers. Don’t forget to ask for verification from a buyer that they have been pre approved for financing.

Considering a short sale can be a daunting task because it is a bit more complicated than a traditional home sale. Knowing what some of the common short sale mistakes are and their solutions can be very helpful for a successful outcome. Here are some of the most common mistakes made with this type of transaction, and their solutions:

• The property is not priced correctly: Be sure that your agent takes you through a detailed listing price strategy so you know exactly where your home should be priced due to its current condition, the other current sales in your area, and how much time you have left to sell.

• The short sale Proposal is not fully completed: Be sure that you fully understand the short sale process and exactly what your lender is looking for, so that you can present a complete and cohesive Proposal to your lender.

• Not Enough Follow Up and Communication: Make sure that your agent is following up with everyone involved during each step of your short sale, so that you know right away if your file has been delayed.

If you currently are in a situation where you must sell your home and you owe more on your home than what it is worth to sell, a short sale can be a very good solution to your problem. Many myths have evolved over time, but understanding today’s reality is a way to help yourself. Seven short sale myths are:

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert has extensive training to help homeowners in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid a foreclosure.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency - not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales. Short sales are becoming synonymous with a “good deal”, specifically with international buyers.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

Today many people are interested in Short Sales as a way to avoid Foreclosure. If you are interested in knowing more about a somewhat complicated transaction, here are the three very uncomplicated things lenders look for when qualifying a short sale:

• Financial Hardship:  This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure.
• Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple. Total Monthly Income - Total Monthly Expense = Monthly Shortfall.
• Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.

For more information about Short Sales see About.com.

Here are some more important things that anyone considering a Reverse Mortgage should know:

• FHA Reverse Mortgage loan limit is $625,500
• Eligible property types include single family residences, condos and town homes, one to four unit properties and newly constructed homes that can provide proof of completion and a Certificate of Occupancy.
• Participants are required to complete a HUD Counseling Session
• Participants must show a fully executed Sales/Purchase Contract
• Participants must provide documentation of cash to close (source of funds and current balance)
• FHA prohibits Discount Points, Interest Rate Buy Downs, Closing Cost assistance and Builder incentives
• Subordinate, bridge and personal loans are not allowed. Either are cash advances from credit cards or Seller Financing.
• Insurance that is required: twelve months of Hazard insurance premiums and twelve months of Flood insurance is required, both payable at closing.

For additional information about Reverse Mortgages see the Reverse Mortgage website.

Did you know that in our country someone turn age 50 every 76 seconds? We are living in a rapidly ageing population, so thank goodness the Department of Housing and Urban Development insures the Reverse Mortgage. It was created to assist seniors live out their golden years in comfort without fear of losing their homes.

Seniors aged 62 and older who qualify for the Reverse Mortgage may either buy or refinance an existing home. Participants may choose between receiving non-taxable monthly income, a lump sum payment or making no payments at all. Insurance, real property taxes and association fees must be paid and users must certify each year that they are the principal residents of the home.

The home may be sold or refinanced at any time. Heirs will be given the option to refinance or sell the home. If the home is sold, the Reverse Mortgage balance will be paid off first and the remaining balance will be distributed however the late owners have designated.

On February 17th, 2009 President Barack Obama signed into law the American Recovery and Reinvestment Tax Act of 2009. It extends tax credits for certain energy efficient additions or replacements in existing homes only. Be aware that the maximum amount of homeowner credit for ALL improvements combined is $1,500, during 2009 and 2010. Following is a list of items that qualify:

• Windows and Doors
• Insulation
• Roofs (either metal or asphalt)
• HVAC
• Water Heaters
• Biomass Stoves

For the following items through the year 2016 on existing homes as well as new construction, tax credits are available at 30% of the cost with no limit:

• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heaters
• Small Wind Systems
• Fuel Cells

For the Tax Year 2008, the only energy efficiency improvements eligible for tax credit are:

• Geothermal Heat Pumps - 30%, up to $2,000
• Solar Water Heaters - 30% up to $2,000
• Solar Panels - 30% up to $2,000
• Small Wind Energy Systems - 30% up to $4,000
• Fuel Cells  - 30% up to $1,500 per .5kW of power capacity

To claim this credit you must file IRS Tax Form 5695 with your 2008 taxes.