AOL real estate has a great article with 10 very detailed credit card moves buyers and sellers should consider making in 2010. This is especially timely because lending guidelines are tightening (again) and the new Credit Card Accountability Responsibility and Disclosure Act (CARD) takes effect on February 22, 2010.

There are a number of provisions in the CARD Act with significant implications and action points for homebuyers and sellers (most of the latter of which will also be homebuyers soon). One, in particular, is to request credit limit increases – if you qualify for them and need a boost to your FICO score – before the act takes place. Afterwards, the CARD Act will make it harder to obtain an increase.

If you’re applying for a mortgage soon, you might also want to use any accounts you have that have been inactive. Credit card companies are highly likely to close those accounts, in this marketplace, which reduces your debt-to-available credit ratio – a major component of your FICO score. I know this seems like a penalty for being responsible, and it is to some extent, but fair or not, it makes sense to avoid inactive accounts being closed by simply using them and paying the balance off ASAP.

Homebuyers wanting to jump into the dawning Era of Conspicuous Frugality might want to look at the free spending and credit management tools referenced in the article.

Check it out! Get the article, here.

lending guidelines are tightening (again) and the new Credit Card Accountability Responsibility and Disclosure Act (CARD) takes effect on February 22, 2010.

Law of the Land

Tara-Nicholle Nelson
Inman News

Thomas R. Lloyd owned and occupied his home in San Francisco, and fell behind on his mortgage payments. In an effort to avoid foreclosure, Lloyd sold his home to equity buyer Jeffrey E. Hoffman and simultaneously signed a leaseback/lease-option agreement under which Lloyd would continue to live in and make lease payments on his home, and for two years would have the right to purchase the home back.

The sales contract did not notify Lloyd of his rights under California’s Home Equity Sales Contract Act ("HESCA"), California Civil Code Section 1695, et seq., which was applicable because his home was in foreclosure at the time of the sale.

HESCA is a statute that protects owners of homes in foreclosure, in part by requiring that equity purchasers inform distressed homeowners of their right to rescind the sale. A distressed owner/seller’s right to rescind the sale continues until the owner/seller is informed of the right to rescind. Further, HESCA expressly provides that "(a)ny waiver of the provisions of (HESCA) shall be void and unenforceable as contrary to the public policy."

Lloyd defaulted on his lease payments and, in the course of an eviction proceeding, executed a general release of all known and unknown claims.

Several months later, Lloyd filed for bankruptcy and rescinded the foreclosure sale of his home, invoking HESCA. When the home’s buyer and Lloyd’s creditors challenged the rescission, the bankruptcy court ruled in favor of Lloyd on grounds that the buyer never informed Lloyd of his rights under HESCA.

On initial appeal, the district court also ruled in favor of Lloyd, finding that the general release he signed did not release his rights under HESCA, because he was neither aware nor notified of any such rights.

When the buyer/creditor appealed to the next level, the Court of Appeals affirmed the lower court’s ruling. The appellate court referenced the district court’s explanation that "where, as here, an equity purchaser fails to provide a sale contract that complied with the requirements of HESCA, the right to rescind is not extinguished and survives even after the execution of a broad release of all known and unknown claims."

Accordingly, the district court held and the Court of Appeals affirmed, in order to block a distressed seller’s rescission of a sale contract under HESCA, "the court will require evidence that the equity purchaser has notified the equity seller of his right to rescind, and that the seller has actual understanding of the rights he relinquishes under the release."

Because the equity purchaser in this matter was not able to show that he notified or explained Lloyd’s HESCA rights to him at any time, Lloyd’s right to rescind the sale contract endured, and the buyer’s challenge to the rescission failed. The bankruptcy court and district court rulings were upheld.

Tara-Nicholle Nelson is author of "The Savvy Woman’s Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Ask her a real estate question online or visit her Web site, www.rethinkrealestate.com.

***

What’s your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.

Like any life-changing move you make, buying, selling or financing a home has its share of drama. But don’t sweat it! Tara and REThink Real Estate have teamed up with our partners over at HGTV’s FrontDoor.com to offer tips, advice and inspiration to take the fear and stress out of any real estate *situation*.

Note from Tara:

Here are two Drama-Free Real Estate articles for the oft-neglected Smart Owners just looking for some guidance to help them be wise stewards of the homes they already own.

Don’t Freak Out If: You Can’t Afford to Pay Your Mortgage or You’re Upside Down on Your Home

Foreclosure-Proof Your Home: Before or After You Buy It!

For the rest of my insider secrets, strategies and mindset management tools for Buying, Selling and Financing your home Drama-Free, visit the entire Drama-Free Real Estate wonderland over at my second home on the web, HGTV’s FrontDoor.com

Click here to watch Tara give tips on crazy ways to sell your house, with Good Morning America Now’s Juju Chang.

Like any life-changing move you make, buying, selling or financing a home has its share of drama. But don’t sweat it! REThink Real Estate has teamed up with our partners over at HGTV’s FrontDoor.com to offer tips, advice and inspiration to take the fear and stress out of any  real estate *situation*.

Note from Tara:

Here are two Drama-Free Real Estate articles for the oft-neglected Smart Owners just looking for some guidance to help them be wise stewards of the homes they already own.

Don’t Freak Out If:  You Can’t Afford to Pay Your Mortgage or You’re Upside Down on Your Home

Foreclosure-Proof Your Home: Before or After You Buy It!

For the rest of my insider secrets,  strategies and mindset management tools for Buying, Selling and Financing your home Drama-Free, visit the entire Drama-Free Real Estate wonderland over at my second home on the web,  HGTV’s FrontDoor.com

The ability to reap the maximum price on the sale of your home can be accomplished easily enough if you make the right improvements. Basic, simple and inexpensive improvements can provide an improved emotional appeal for a potential buyer.

• A crack in the wall can be (and should be) repaired with some simple spackle or plaster and touch-up paint.
• Decorate with pictures and mirrors to add style to the home. Mirrors can provide a greater sense of space when properly placed. Touch up the frames and then place the mirrors around your home. Be careful not to overdo it with too many mirrors, though! You want the home to feel spacious, not like Studio 54!
• One of the biggest complaints heard from potential buyers that there isn’t enough closet space. Purchasing a closet organizer and installing it in any or all of your closets can make all the difference. You can also try installing a chic wardrobe in a corner of a bedroom for hanging clothes. The idea here is to be creative so that the “fake closet” looks as though it were part of the room. (Consider offering to leave the wardrobe for the buyer, too!)
• Paint is inexpensive, quick, and simple. The right paint can brighten the room or hallway and bring it back to life. Make sure to choose neutral colors – consult with your Realtor® about the colors buyers prefer. Remember, you are trying to sell the home and move out, so it doesn’t necessarily have to conform to your personal preferences.
• Buyers are easily turned off by a scarred, dingy floor. Whether you have wooden, tile or carpeted floors, do whatever you can to make them shine again. For damaged wood floors, call a professional for an estimate for restoring your floor. If you have carpeted floors, consider replacing the carpet; ask for “real estate carpet” at your flooring company: it is light and inexpensive, but can be a nice selling point for your home.
• Having houseplants is not only healthy for you but creates a feeling of warmth around them. Indoor plants are far less expensive than you might imagine. Attractive ceramic or brass pots can add a designer touch to your home. Hanging plants such as Boston ferns are inexpensive, easy to care for and would go great in your new home when you move.
• Give your bathroom a face-lift by adding a coat of fresh paint, some decorative moldings, tile grout, and maybe a new designer faucet and showerhead. Perhaps more important than anywhere else in the house, clean your bathrooms relentlessly.

These simple dress-up tips are nice for quick and easy improvements, but there are other factors that will also affect your home’s resale value. These have much more to do with the legality and contracts and inspections that are necessary when selling a home. Each and every one is just as important as the overall appearance of the home.

• First of all, you must price your property correctly and at a competitive market value when you list it. The market is so competitive that even overpricing by a few thousand dollars can be the difference between selling or not. The problem with an overpriced home is that it can minimize the number of offers, lower the number of showings, lower agent response, limit financing options, limit the number of qualified buyers, and net less money for the seller.
• You must make your home available for showings. Buyer’s brokers will not show homes for which they must search high and low for the key and access – they do not have time to rush around town all day chasing down and dropping off house keys. If you will be home during a showing, then put on some soft music and take a walk when the potential buyers come through, letting the buyer be at ease and letting the buyer’s agent do his or her job. Selling your home quickly can be a benefit if you need to leave immediately, but can cost you thousands of dollars. A buyer sensing the seller is distressed will make a lower offer. This is why pricing correctly is important – you should know all there is to know about the market before listing and work hand in hand with your agent.
• Disclosing property flaws up front is vital in selling your home for the most possible money. Get professional assistance for all levels, from disclosing the flaw to fixing it. If you are unaware of a problem or attempt to cover it you, you risk losing the sale and finding yourself in cour

Whether you just want your house to look better or you are serious about getting your house ready for potential buyers to start viewing your house to purchase, here are 38 valuable tips to get you on your way

EXTERIOR:

1. Paint the exterior of your home to make it look cleaner and years younger. If your home has been painted recently, have the trim painted again. The fresh smell of paint to the buyer shows that the seller has put forth effort to prepare the home for sale.
2. Trim shrubs, especially around walkways.
3. Park extra cars down the street.
4. Sweep debris from sidewalks, patios, and the front walkway.
5. Put away all toys, skateboards and bicycles.
6. Remove rusted swing sets and worn out patio furniture.
7. Move firewood off the ground and away from the house. On a termite inspection, firewood stacked next to the house might be flagged as a condition conducive to termite infestation.
8. Make sure the roof is in good condition.
9. Mow the lawn frequently. Weed and plant flowers.
10. Clean all windows and repair any broken panes.
11. Keep pets out of the way.
12. Clean up oil stains on the driveway.
13. Water yard only in the early morning or late evening to avoid water being tracked inside the home.
14. Move trashcans from out front of the house and out of walkways.
15. Clean the gutters.
16. Repair sprinkler heads so that the yard doesn’t develop brown spots.

INTERIOR:

1. Put away all dishes, toasters, blenders, etc. from kitchen counters to create the illusion of spaciousness.
2. Organize the laundry room. Clean all clothing or keep it neatly in baskets or hampers.
3. Bathrooms should sparkle. Clean the faucets. If the shower curtain is worn, buy a new one.
4. Clean and vacuum all flooring.
5. Make the beds.
6. Remove all clothes from chairs or floors.
7. Remove unnecessary furniture items to create space. This will make your rooms appear larger.
8. Keep appliances, air conditioner and heater in perfect working order.
9. Seal or caulk windows, tubs, showers and sinks.
10. Clean ashes from the fireplace.
11. Open drapes and blinds, and turn on all the lights.
12. Store away extra clothes and shoes so closets appear larger.
13. Remove knickknacks that may look like clutter.
14. Remove potentially offensive posters or paintings, as well as any ethnic or religious items which might hinder a buyer’s ability to visualize their own family in your home.
15. Put toys away in the kids’ bedrooms.
16. Move any valuable figurines or artwork that could accidentally get knocked over.
17. Place fresh flowers and plants throughout the home.
18. Keep pet areas clean and odor free.
19. Secure jewelry, cash, and prescription medication out of sight and out of reach.
20. Remove any extension cords or phone cords that might present a walking hazard.
21. Make sure that the temperature inside your home is comfortable during showings.
22. Be sure to place jewelry or any other valuables in a safe deposit box.

It has been said that what makes a property sell is location, location, location. It’s catchy, but only partially correct. There are five factors involved in getting your house sold: LOCATION, PRICE, CONDITION, the MARKET, and the REALTOR® you select. Any Realtor can get your house sold the first time it appears for sale if it is positioned correctly on these factors:

Factor # 1 LOCATION
The location of your house is simply what it is — it cannot be changed. In the buyer’s mind a house on a busy street, near power lines, next to or backing up to a commercial business or perhaps too close to a school is less desirable. Homes located in a quiet cul-de-sac, backing up to a greenbelt, or offering an exceptional view are more desirable.

Factor # 2 PRICE
Every homeowner wants to sell their house for as much money as possible, but if your asking price is too high your house will help sell other houses in your area. Overpricing a property usually has the following effects:

1. Increases the time your home sits on the market, which causes buyers to think you are desperate, and to offer you less than your home’s fair market value.

2. Buyers who should be looking at your house will not see it because it is out of their price range.

3. Buyers who do look at it purchase larger homes that are priced the same.

4. You receive low offers or no offers at all. Remember, a higher asking price does not automatically equal a higher sales price. The more you overprice a property, the more likely you are to eventually sell it at a price lower than it is worth.

You want to price your house to attract appropriate buyers for your neighborhood. The more buyers you come to see your home, the more they will compete for your house, which will drive your sales price up. Competition will result in receiving offers over and above your asking price.

Factor # 3 CONDITION
Buyers want to get the most home for their money and many times are looking at new homes as well as resale homes. Buyers will pay top dollar for homes that are in pristine condition. Your Realtor should be knowledgeable in this area and should suggest minor things you can do to help your home show its very best.

Factor # 4 The MARKET
The real estate market is always in one of three types of markets.

1. A hot seller’s market where there is low inventory and more buyers which, in turn, drives selling prices up.

2. A normal stable market where there is an equal number of buyers in proportion to the number of homes for sale. The result is home prices remain stable.

3. A buyer’s market where there are more homes for sale than buyers who want to buy. This causes home prices to decline.

Factor # 5 The Realtor you choose
Any Realtor will show enthusiasm and want to list your house for sale. Unfortunately, many Realtors still cling to ineffective marketing ideas that do little to sell your home, which means that you miss out on the best buyers. Choose your Realtor based upon

1. Experience at listing and marketing houses for sale;

2. Ability to use technology to market your house world wide to buyers 24/7, and to communicate with you;

3. Reviewing with you a comprehensive Comparative Marketing Analysis of home sales in your area;

4. Ability to offer a step-by-step marketing plan that will get your house sold at the highest possible price, within a time frame that best works for you;

5. Contractual expertise and the ability to negotiate and resolve problems which arise during your escrow.

Working with a full-time professional Realtor is a must. Choose your Realtor by asking her questions. Find out how knowledgeable she is about houses currently for sale in your price range and also of houses that have recently sold. Does your agent work with a good lender that can assist your new buyer to obtain financing? A good listing agent can get your house sold quickly at top dollar and help you find a new home.

REALTOR is a registered trademark of the National Association of Realtors.