Heavy rains and winds recently pummeled the New York Metro area, causing major damage to many homes and businesses. If you experienced property damage, you need to know what to do after a loss.
If you suffer a loss, the first thing to do is to notify your insurance company or its agent. You can do this by telephone, although it is a good idea to follow up with written notification. Remember, if you give the notice to your broker, rather than directly to the insurance company, you still have a responsibility to make sure that the insurance company receives notice of your claim.
It is also important to notify your insurance company promptly after any incident takes place that might result in a claim at some later date, even though no claim was made at the time the event occurred.
For example, if your dog bites a neighbor or a guest falls on your property, it should be reported to the insurance company even though you don't know whether any claim is actually going to be made against you. Your failure to notify the company promptly might allow it to deny coverage in the event a claim if filed against you at a later date.
It is also important to protect your property against further damages. For example, if the windows are broken, have them boarded up to protect against further vandalism or burglary. The cost of this type of protection is covered by, and would be reimbursed by your insurance company.
However, no permanent repairs should be made until your company or its representative has inspected the property. The company has the right to inspect the property in its damaged state, and can refuse to pay you for any damage that is repaired before inspection.
An adjuster will be sent from your insurance company to examine the damage and give you an estimate of the cost of repairs or replacement. You should also get an estimate from your own contractor to compare with the insurance company's estimate. Your contractor will probably charge a fee for this service but might credit that fee to your bill if you hire that contractor to repair and/or replace your property.
If you need assistance, your agent, broker or insurance company sales representative should help you fill out the claim form and help gather the materials you need to substantiate your loss.
In the event you are unfortunate enough to experience a major loss such as a fire or severe windstorm which has badly damaged or destroyed your home, and you are not in a position to negotiate a settlement with your company, you may want to consult an attorney or call a licensed public adjuster to act on your behalf with your insurance company.
Public adjusters are licensed by the Insurance Department. They represent you and not the insurance company. They will help you in taking inventory of your loss, securing your home from vandalism, contacting your insurance company, advising you on the extent of your coverage and help you secure the services needed to repair or rebuild you home. They will negotiate on your behalf with the adjuster from the insurance company.
A public adjuster may not charge a fee more than 12.5% of the recovery amount and must get a signed compensation agreement from you in which the amount of compensation is clearly stated. Such agreement may be cancelled up to midnight of the third business day after the date on which you have signed the compensation agreement. In addition, public adjusters may not solicit your business between the hours of 6 p.m. and 8 a.m.
Another alternative to consider when an agreement cannot be reached between you and your insurance company is the appraisal process. Every homeowner, tenant, cooperative apartment and condominium policy issued in New York contains a provision whereby you and your company select a competent and disinterested appraiser. The two appraisers, in turn, select an umpire. Each appraiser must evaluate the loss and determine the value of each item. Any disagreements between the appraisers regarding the value of any items are submitted to, and settled by the umpire. The costs of this process are paid by the policyholder and the insurance company.
Source: NY State Insurance Department
Showing posts with label disrepair. Show all posts
Showing posts with label disrepair. Show all posts
Monday, March 22, 2010
Tuesday, December 15, 2009
Ten Tips to Keep Your Holiday Home Fire and Injury Free
Source: USCPSC
Fires Lead the List of Hazards Related to Holiday Decorating
WASHINGTON, D.C.- As the holiday season approaches, the U.S. Consumer Product Safety Commission (CPSC) is urging consumers to make safety a factor in holiday decorating. Whether it is careful candle placement or checking the warning label on the holiday lights, simple safety steps can go a long way in preventing fires and injuries this year.
Annually, during the two months surrounding the holiday season, more than 14,000 people are treated in hospital emergency rooms due to injuries related to holiday decorating. In addition, Christmas trees are involved in hundreds of fires resulting in an average of 15 deaths and $13 million dollars in property damage annually. Candle-related fires lead the list of hazards averaging more than 12,000 a year, resulting in 150 deaths and $393 million in property damage.
“Holiday decorating-related fires and injuries most often involve defective holiday lights, unattended candles and dried-out Christmas trees,” said CPSC Chairman Inez Tenenbaum. “We are providing this list of 10 simple safety steps to help keep your holiday home safe.”
Use the following ten safety tips when decorating this year:
Trees and Decorations
When purchasing an artificial tree, DO look for the label "Fire Resistant." Although this label does not mean the tree won't catch fire, it does indicate the tree is more resistant to catching fire.
When purchasing a live tree, DO check for freshness. A fresh tree is green, needles are hard to pull from branches and do not break when bent between your fingers. The bottom of a fresh tree is sticky with resin, and when tapped on the ground, the tree should not lose many needles.
When setting up a tree at home, DO place it away from heat sources such as fireplaces, vents, and radiators. Because heated rooms dry out live trees rapidly, be sure to monitor water levels and keep the stand filled with water. Place the tree out of the way of traffic, and do not block doorways.
In homes with small children, DO take special care to avoid sharp, weighted or breakable decorations, keep trimmings with small removable parts out of the reach of children who could swallow or inhale small pieces, and avoid trimmings that resemble candy or food that may tempt a child to eat them.
Lights
Indoors or outside, DO use only lights that have been tested for safety by a nationally-recognized testing laboratory, such as UL or ETL/ITSNA.
Check each set of lights, new or old, for broken or cracked sockets, frayed or bare wires, or loose connections. Throw out damaged sets. DON’T use electric lights on a metallic tree.
If using an extension cord, DO make sure it is rated for the intended use.
When using lights outdoors, DO check labels to be sure the lights have been certified for outdoor use and only plug them into a ground-fault circuit interrupter (GFCI) protected receptacle or a portable GFCI.
Candles
Keep burning candles within sight. DO extinguish all candles before you go to bed, leave the room or leave the house.
DO keep lighted candles away from items that can catch fire and burn easily, such as trees, other evergreens, decorations, curtains and furniture.
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WASHINGTON, D.C.- As the holiday season approaches, the U.S. Consumer Product Safety Commission (CPSC) is urging consumers to make safety a factor in holiday decorating. Whether it is careful candle placement or checking the warning label on the holiday lights, simple safety steps can go a long way in preventing fires and injuries this year.
Annually, during the two months surrounding the holiday season, more than 14,000 people are treated in hospital emergency rooms due to injuries related to holiday decorating. In addition, Christmas trees are involved in hundreds of fires resulting in an average of 15 deaths and $13 million dollars in property damage annually. Candle-related fires lead the list of hazards averaging more than 12,000 a year, resulting in 150 deaths and $393 million in property damage.
“Holiday decorating-related fires and injuries most often involve defective holiday lights, unattended candles and dried-out Christmas trees,” said CPSC Chairman Inez Tenenbaum. “We are providing this list of 10 simple safety steps to help keep your holiday home safe.”
Use the following ten safety tips when decorating this year:
Trees and Decorations
When purchasing an artificial tree, DO look for the label "Fire Resistant." Although this label does not mean the tree won't catch fire, it does indicate the tree is more resistant to catching fire.
When purchasing a live tree, DO check for freshness. A fresh tree is green, needles are hard to pull from branches and do not break when bent between your fingers. The bottom of a fresh tree is sticky with resin, and when tapped on the ground, the tree should not lose many needles.
When setting up a tree at home, DO place it away from heat sources such as fireplaces, vents, and radiators. Because heated rooms dry out live trees rapidly, be sure to monitor water levels and keep the stand filled with water. Place the tree out of the way of traffic, and do not block doorways.
In homes with small children, DO take special care to avoid sharp, weighted or breakable decorations, keep trimmings with small removable parts out of the reach of children who could swallow or inhale small pieces, and avoid trimmings that resemble candy or food that may tempt a child to eat them.
Lights
Indoors or outside, DO use only lights that have been tested for safety by a nationally-recognized testing laboratory, such as UL or ETL/ITSNA.
Check each set of lights, new or old, for broken or cracked sockets, frayed or bare wires, or loose connections. Throw out damaged sets. DON’T use electric lights on a metallic tree.
If using an extension cord, DO make sure it is rated for the intended use.
When using lights outdoors, DO check labels to be sure the lights have been certified for outdoor use and only plug them into a ground-fault circuit interrupter (GFCI) protected receptacle or a portable GFCI.
Candles
Keep burning candles within sight. DO extinguish all candles before you go to bed, leave the room or leave the house.
DO keep lighted candles away from items that can catch fire and burn easily, such as trees, other evergreens, decorations, curtains and furniture.
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Friday, December 4, 2009
Intense Kitchen Fire Video-Must See!
Kitchen fires always increase around the holiday season. This video shows how a wet dishcloth can be a "one size fits all" lid to cover a fire in a pan! This is an eye opener... it demonstrates how to deal with a common kitchen fire ...oil in a frying pan.
Fire Fighting Training schools demonstrate this with a deep fat fryer set on fire fields. An instructor would put on a fire suit and using an 8 oz cup at the end of a 10-foot pole, toss water onto the grease fire. The results got the attention of the students. The water, being heavier than oil, sinks to the bottom where it instantly becomes superheated.
The explosive force of the steam blows the burning oil up and out. On the open field, it became a thirty foot high fireball that resembled a nuclear blast.
Inside the confines of a kitchen, the fire ball hits the ceiling and fills the entire room. Also, do not throw sugar or flour on a grease fire. One cup of either creates the explosive force of two sticks of dynamite.
This is a powerful message----watch the video and don't forget what you see.
See video:
Tell your whole family about this video. Or better yet, send this to them.
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Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.
When disasters strike, Advanced Restoration is ready to respond 24 hours a day, 7 days a week.
Friday, November 20, 2009
Completeing Your Dream Home with the FHA 203K Loan!
The FHA 203k loan can help. The 203k can give the buyer the ability to have one loan to purchase and renovate their home at the same time.
Similar to a traditional mortgage with a construction loan added on top, the 203k can be used for the following:
- Remodeling bathrooms and kitchens (even built-in appliances)
- Replacing a roof, gutters and downspouts
- Adding a second story, afamily room,another bath, etc.
- Completing a basement or attic
- Upgrading plumbing, heating, air conditioning or electrical service
- Installing new siding, energy efficient windows and doors
- AND MUCH MORE!
For more information on 203k loans in New York, please contact the following:
203k Contractor:
Company: Advanced Restoration Corporation
Contact: Gary Matzelle
Phone: (516) 903-4107
Email: gmatzelle@advancedrestoration.com
Mortgage Banker:
Company: Continental Home Loans
Contact: Robert Flower
Phone: (917) 584-9292
Email: rflower@cccmtg.com
Looking for REO/Foreclosures?
The REO People
Thomas Becker (Licensed Real Estate Salesperson)
Phone: (631) 873-8150
Email: tomsellinghomes@aol.com
Tuesday, November 3, 2009
Fall Maintenance Around Your Home
GROUNDS
Check window wells, dry wells and storm drains for debris or blockage.
Repair any driveway cracks and/or heaved or settled walkways.
Trim all trees and shrubs that are too close to the house.
Check (ideally during a rainstorm) for rainwater drainage away foundation.
Clean and put summer furnishings away.
Drain and store garden hoses.
EXTERIOR SURFACES
Check weathertightness of all exterior surfaces and components.
Check for deterioration of painted or finished areas. If too late for a full paint job, prime and touch-up bare wood surfaces.
Caulk and seal all joints in siding, around windows and doors.
Check and seal any foundation cracks.
Improve weatherstripping at exterior doors and windows as needed.
Reset storms and screens where required.
Look for any signs of insect or pest activity around the foundation and at wood components close to the ground.
ROOF (Use binoculars or hire a professional.)
Check for loose, damaged or missing roofing.
Check eave areas for signs of moisture build-up or damage.
Check the condition of chimneys.
Check flashings for signs of lifting or damage and repair as needed.
Check and clean all gutters (eavestroughs) and downspouts.
ATTIC
Check ventilation openings for nests or other blockage.
Check the position and condition of insulation for uniform coverage.
Look for any signs of excessive moisture or heat buildup.
INTERIOR ROOMS
Check all areas for signs of roof or plumbing leakage.
Have any fireplaces or wood stoves and flues checked and professionally cleaned.
Reset automatic timers for the change in daylight hours.
Check all smoke/carbon monoxide detectors. Replace batteries if over a year old.
Test Ground-Fault Circuit-Interrupters (GFCI’s) using built-in test buttons.
HEATING/COOLING SYSTEMS
Clean all elements of the cooling system.
Remove (or winterize) room air conditioners.
Follow manufacturer instructions for the maintenance of your heating system.
Change or clean heating system filters on warm air systems (now and regularly).
Check heating and cooling systems for any evidence of water leaks.
If present, clean and test the humidifier.
Have your heating system serviced annually by a qualified heating serviceperson before the heating season to keep it functioning efficiently and properly.
PLUMBING
Drain exterior water lines and open taps (in cold areas).
Insulate water lines that are subject to freezing.
Check the condition and temperature setting of the water heater. Follow the manufacturer’s recommendations for the temperature setting.
Check the plumbing system and fixtures for any evidence of water leaks or blocked drains.
Confirm proper operation of any sump pumps and free flow of the drain line.
Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. More home safety and maintenance information is available online at http://www.longisland.housemaster.com/ or contact Matthew Kaplan at (800) 805-1122.
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Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.
When disasters strike, Advanced Restoration is ready to respond 24 hours a day, 7 days a week.
Friday, October 9, 2009
FHA 203k Loans Featured on NBC News4 New York!
NBC Reporter Lynda Baquero and
Gary Matzelle from Advanced Restoration Corp.
The homeowner in this story utilized the 203k loan program to renovate a home (located in Medford, New York) which needed $74,000 in repairs/restoration. The Section 203(k) program is HUD's (Housing and Urban Development) primary program for the rehabilitation and repair of single family properties.
With a 203k loan, the borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.
VIDEO: To view this story, please click here.
For more information on FHA 203k loans in New York, please contact:
Advanced Restoration Corporation (203k Contractor):
Gary Matzelle at (w) (800) 693-6263; (c) (516) 903-4107,
or email Gary at: gmatzelle@advancedrestoration.com
Continental Home Loans (FHA Approved Lender):
Wendy Doerzbacher at (w) (631) 390-6176; (c) 516 982-6339,
or email Wendy at: wendyd@cccmtg.com
Monday, September 28, 2009
Why Renovate With a 203K Streamlined Loan?
Because You Can!
I'll keep this very brief...
You are purchasing a home that needs minor repairs (repairs under $35,000 qualify for a streamlined loan). Incorporating the rehab into your mortgage payment allows you to have just one payment. Some highlights include:
I'll keep this very brief...
You are purchasing a home that needs minor repairs (repairs under $35,000 qualify for a streamlined loan). Incorporating the rehab into your mortgage payment allows you to have just one payment. Some highlights include:
- Loan amounts up to 110% of the home's appraised value; renovation amounts up to $35,000.
- No work write-up, no inspection required if repairs are less than $15,000 and no HUD consultant required.
- There is no longer a minimum of $5,000 in repairs for a 203K Streamline.
- On a 203K Streamline, up to 50% of the rehab amount can be requested immediately following the closing. After closing the work can start.
- For a 203K Streamline, there is a maximum of 2 draws per contractor.
- Loan can be used for many improvements, including repair/replacement of: roofs, plumbing, electrical, flooring, minor remodeling, windows, doors, etc.
- Available for mortgage refinance transactions including those where the property is owned free and clear.
Wednesday, August 19, 2009
Rehab Your Foreclosure with a 203k Loan!
You are thinking about buying a home foreclosure on Long Island, but the properties you are looking at need serious rehabilitation.
What Can You Do?
You may want to apply for an FHA 203(k) restoration loan through an approved lender!
The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased.
HUD's 203(k) program can help you overcome this obstacle by enabling you to purchase or refinance a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is provided through approved lenders nationwide and is available to persons wanting to occupy the home.
The downpayment requirement for an owner-occupant (or a nonprofit organization or government agency) is approximately 3.5% of the acquisition and repair costs of the property.
The 203(k) loan includes the following steps:
A potential homebuyer locates a fixer-upper and executes a sales contract after doing a feasibility analysis of the property with his/her real estate professional. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.
The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
The appraisal is performed to determine the value of the property after renovation.
If the borrower passes the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property. It is essential for a borrower to select a general contractor (restoration company) that is familiar with the 203k loan process, including the required forms and documents.
Streamlined 203k Loan
FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.
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Advanced Restoration Corporation is a full-service property restoration contractor with the ability and 203(k) knowledge to provide complete Rehabilitation & Restoration services to your new home or refinance! We service the New York Metro area (Nassau County, Suffolk County and the NY Boroughs).
For more information about 203(k) loans and mortgage professionals authorized to generate FHA 203(k) loans, please contact Gary Matzelle at (516) 903-4107.
Tuesday, August 11, 2009
When Disaster Strikes...Advanced Restoration Responds!
Disasters can happen when you least expect it...
In late June, 2009 a vehicle crashed into a building in Deer Park, NY. The Suffolk County Police, Deer Park Fire Department and other public agencies responded within minutes.
The driver of a Buick Eighty-Eight sedan was injured after the car was involved in an accident in which it struck a smoke shop. The car hit the Kristy Smoke Shop on Deer Park Avenue, and the driver was taken to Good Samaritan Hospital Medical Center by the Deer Park Fire Department Ambulance with unknown injuries, and there were no injuries to anyone in the store.
Also responding to the scene within minutes was Advanced Restoration Corporation. Advanced Restoration staff had the primary responsibility to immediately secure the building and partner with local officials, ensuring the structural integrity of the building.
Advanced Restoration staff also worked closely with the tenant of the building, the insured and the insurance company to mitigate damages and take the appropriate action to begin the restoration process.
This video depicts Advanced Restoration's actions associated with restoring this building back to "normal", allowing the business owner to re-open the smoke shop in a timely manner.
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To find out more information on how you can partner with Advanced Restoration, call us at (800) 693-6263, or visit us on the web at www.AdvancedRestoration.com.
Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.
Tuesday, August 4, 2009
Protect Your Home When Disaster Strikes!
TOP 5 WAYS TO PROTECT HOMES FROM HURRICANES
The Institute for Business & Home Safety (IBHS) has outlined five ways to better protect homes from damaging wind and rain this hurricane season:
1. Shutter all openings
2. Secure loose roof shingles
3. Seal openings, cracks and holes
4. Strengthen soffits
5. Survey surroundings
1-Shutter all openingsThe most important thing you can do to improve the chance your home will survive a hurricane is to protect all windows and doors. The range of products on the market today means it’s easier to find protection that fits your budget. Whatever you choose, make sure the product has the proper approvals for wind pressure and large-missile impact. If it’s not a permanent product, install permanent fasteners ahead of time so installation is easier when storms threaten. Gable end vents can be shuttered as if they were a window. Garage door companies have bracing systems available for about $400 that should work for most door styles.
2-Secure loose roof shinglesKeeping shingles attached is critical. If the edge shingles are not well fastened or extend beyond the drip edge more than a 1/4”, high wind can lift them off and create a peeling process or domino effect. If they come up without much effort (older shingles become brittle and may crack when bent too much), secure them with three one-inch dabs of roofing cement under each tab.
3-Seal openings, cracks and holesWater can invade homes in a number of ways, especially when it’s being blown horizontally. The problem is compounded if there’s a loss of power and air conditioners or dehumidifiers are unable to dry things out. Fill holes where wires, cables and pipes enter and exit the house and seal around electrical boxes and circuit breaker panels. Seal cracks around wall outlets, dryer vents, bathroom and kitchen vents, and wall lights.
4-Strengthen soffits (the material covering the underside of your roof overhang)Keeping soffits in place can help keep water out of your house. Some have wood supports but the soffit material is not adequately fastened to the wood or there is no wood backing and the vinyl or aluminum channels are stapled or nailed to the wall. If there are wood supports, secure soffit material with sharp-pointed stainless steel screws. If the channels are just nailed to the wall, you can use polyurethane caulk to seal the channel to the wall and tie the parts together.
5-Survey surroundings and limit potential flying debrisLimiting possible sources of wind-borne debris before a storm will help protect your home and those around you. Replace gravel/rock landscaping materials with shredded bark. Limit yard objects. Keep trees and shrubbery trimmed. Cut weak branches.
For more information http://www.disastersafety.org/.
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Knowing who to call for help when your company's Business Continuity Plan gets activated is just as important as having a disaster plan. At Advanced Restoration, we understand that an unforeseen event impacting a property structure can be devastating to the occupants of the structure.
That is why we offer our Emergency Response Partnership Plan (ERPP). When a property loss occurs, valuable time is usually lost from when the situation occurred to the subsequent time taken by occupants to determine how to proceed, or who to call. Having a plan in place saves crucial time, valuable belongings, and minimizes business disruption! Contact us for more information at (800) 693-6263, or visit us on the web at www.AdvancedRestoration.com.
Wednesday, July 15, 2009
203k Loans Made Simple? Yes, for Your Clients
Excellent article on 203k loans...
Source: Colleen Craig
Santa Clarita, CA
More about Colleen…
Southern California Mortgage Professional
Office Phone: (661) 310-8536
Cell Phone: (661) 310-8536
Email Colleen
Santa Clarita, CA
More about Colleen…
Southern California Mortgage Professional
Office Phone: (661) 310-8536
Cell Phone: (661) 310-8536
Email Colleen
203k MADE SIMPLE?
Okay, maybe not, but I will attempt to make it as simple as possible for the client to understand and want to read on. For many of us in the business who are " in the know" we forget that we need to go back to the basics and spell it out in simple terms for others to understand. So I've compiled some information based on my most recent commonly asked questions just this week.
In Southern California, FHA loans were just not utilized over the past 10 or so years because of the FHA Maximum Mortgage limits But now that the limits have been increased and the prices have decreased, FHA loans have become the most utilized loan in recent months. HOWEVER, because it was not a popular loan, you would be amazed at how many lenders/brokers do not know what they are doing. Especially when it comes to the 203k loan. I spoke to a client today that was given such mis-information it made me cringe.
Apparently they told the client that 203k loans were no longer being done (Gee, you think it was after realizing that they had no idea what they were doing?) and they tried to flip them into another loan. This was after telling my client that their loan amount would be for the contract price and the extra money would just be separate and sit in an impound account to be disbursed over the next 6 months. Okay partially true, the extra amount would be in escrow to be disbursed as the remodel progressed, but for free? Who pays for the extra 50,000 dollars you just borrowed for repairs? Your loan amount is for the entire amount you are borrowing. Makes sense right?
Apparently they told the client that 203k loans were no longer being done (Gee, you think it was after realizing that they had no idea what they were doing?) and they tried to flip them into another loan. This was after telling my client that their loan amount would be for the contract price and the extra money would just be separate and sit in an impound account to be disbursed over the next 6 months. Okay partially true, the extra amount would be in escrow to be disbursed as the remodel progressed, but for free? Who pays for the extra 50,000 dollars you just borrowed for repairs? Your loan amount is for the entire amount you are borrowing. Makes sense right?
So what is a 203k loan and why use one?
When a buyer wants to buy a home that needs repairs utilizing FHA financing, normally the repairs would have to be completed prior to the close of escrow. The repairs would normally fall on the responsibility of the seller. With so many foreclosures in today's market, the bank is the seller. And many times the home in need of repair is listed "as is". Which in the past would require a cash buyer or conventional financing. This is another reason that people in the business decided to shy away from FHA loans. I believe it was pure ignorance of the programs that were available by the brokers and the realtors couldn't properly prepare their seller for what to expect that gave FHA loans a bitter taste.
My associate Jeff Belonger said it best in his post about ignoring what your listing agent tells you about FHA loans
Here we go....203k loans for dummies
* 203k loans allow you to FINANCE the cost of the repairs in the new loan amount. (Not to exceed 110% of the after improved value determined by the appraiser and 203k consultant) What does this mean? I buy a house for 200,000 that needs 50,000 in repairs and I can borrow the extra 50,000? Too good to be true? NOPE. That's it in a nutshell....
* 203k loans allow you to FINANCE the cost of the repairs in the new loan amount. (Not to exceed 110% of the after improved value determined by the appraiser and 203k consultant) What does this mean? I buy a house for 200,000 that needs 50,000 in repairs and I can borrow the extra 50,000? Too good to be true? NOPE. That's it in a nutshell....
details please.........
* Down payment is based on the sale price PLUS the final cost of the repairs x 3.5% so for example:
Sale price is 200,000 (DO not calculate 3.5% on this) PLUS 50,000 in repairs/costs (which includes certain costs and reserves the lender will require) 250,000 x 3.5%. Down payment is $8750.00 (closing costs are separate as usual)
* Buyer will hire (lender can recommend) a HUD approved FHA 203k Consultant to go to the property with the buyer to determine the required repairs and wish list repairs.
The fee charged by the consultant can be included in the mortgage. The fee can range anywhere between $ 400 to $1200 depending on the repairs required. Please check with the consultant prior to scheduling your appointment.
*Buyer will obtain estimates from several licensed contractors for the work to be completed depending on how extensive the repairs.
Three estimates are recommended for each contractor but not necessary. The buyer can act as their own general contractor only if experienced and licensed. (FHA says experienced, but most investors require the buyer to be licensed) The contractors must provide documentation to be approved by the lender prior to approval.
The consultant will determine the "required" repairs versus the "wish list repairs". You must start with the required repairs and then move on from there for you wish list. This is an important step for the consultant and appraiser so that you don't over improve the home and exceed the comparable properties in the area.
* Once the consultant completes his report of required and wish list repairs, the lender will forward it to the appraiser for an "After Improved Value". This is where you may run into problems with OVER improving the property based on current values. Between the consultant, appraiser and buyer - the FINAL FINAL report will be tweeked to come up with a final report that the contractors will be hired to do.
* So now the file is submitted to underwriting and approved ( you need to qualify at the full amount you are borrowing of course, which may include your current mortgage payment for the home you will live in during the rehab period) and the normal steps for closing will occur.
(BIG PLUS - you can include 6 months of mortgage payments in the new loan amount since it's assumed that you will have TWO housing payments during the rehabilitation of the new home. This money will be deducted each month during the reahab process) This is optional.
* Closing occurs, and the work begins within 30 days of closing/funding. (This is when your mortgage payments start since this is when you started borrowing the money - however, if you included the 6 mths mtg payments, they will be deducted from escrow starting when your first payment is due)
* Disbursements are made throughout the following 6 months from the escrow account (normally 4 draws with one final inspection, but this can be increased for higher repair amounts) as the work is completed.
Remember you paid the seller for the price of the home, and then you borrowed an additional amount of X which is sitting in an escrow account to pay the contractors (your total loan is the total amount you borrowed)
Once the last disbursement is made and the final inspection showing COMPLETED AS PER THE CONTRACT........you are done! Simple as 1 2 3 - okay maybe not, but that's why having an experienced lender on your side is crucial!
There are specific properties and repair requirements for this type of loan, so please call me for specific details if this sounds like the right loan for your new home.
Please send me your before and after pics! I would love to see them and maybe even post them for people to see what can be done with this awesome program! Or contact Colleen Craig FHA 203k Specialist for more details
Happy Rehabbing!
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Advanced Restoration Corporation is a full-service restoration contractor with the ability and 203(k) knowledge to provide complete Rehabilitation & Restoration services to your new home!
For more information about 203(k) loans and mortgage professionals authorized to generate FHA 203(k) loans, please contact Gary Matzelle at (516) 903-4107.
Friday, July 10, 2009
Who Will Be Open For Business if Disaster Strikes?
Contact:Brenda O'Connor
(813) 675-1043
TAMPA – Large and small businesses alike are having a difficult time in the current economy and the Institute for Business & Home Safety (IBHS) is concerned many may not be open for business if disaster strikes.
According to the Association of Contingency Planners, Business Continuity Awareness Week was June 21-27, and IBHS wants business owners and managers to take advantage of free resources that are available to create business continuity plans that can help keep operations running when the unexpected happens.
In addition to minimizing the impact of severe weather events or problems such as a water main break or regional power outage, business continuity planning requires a thorough assessment of operations, which often yields additional benefits including opportunities to streamline functions or identifying areas for cost reductions.
IBHS outlines the following five steps to begin safeguarding operations:
1. Record basic information for employees, ownership, suppliers, vendors and key contacts.
2. Identify critical business functions (i.e., what is required to maintain income, keep a competitive advantage, and meet regulatory or contractual obligations?).
3. Scout alternate locations (i.e., where is the best site to resume operations?).
4. List what is needed to fulfill critical business functions at an alternate location, including records, critical telephone numbers, e-mail addresses, equipment, machinery and vehicles.
5. Identify equipment and services that workers will need, such as computer equipment and software, voice and data communications, and required office supplies.
The IBHS Open for Business® suite of resources is available in multiple formats on DisasterSafety.org and includes worksheets and checklists to help with development of your plan. There also is an online training series for those who prefer being walked-through the process one step at a time, with an option for reminder e-mail messages to keep planning on track.
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Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.
When disasters strike, Advanced Restoration is ready to respond 24 hours a day, 7 days a week. You are guaranteed to speak with one of our knowledgeable, caring team members, day or night. Our immediate response to a claim/property loss helps minimize the damages to the structure, contents, and ease the sometime catastrophic effect that a disaster may have on an owner or occupants.
Wednesday, June 17, 2009
Purchasing a Foreclosure Needing Repairs?
You see the perfect home in a Long Island neighborhood, and the house is a foreclosure. The exterior of the home is nice, but the inside has water damage, structural damage and mold. You want to buy this house and the selling price is excellent...What are your options as a homebuyer? Will you be able to "close" on a home that is in disrepair?
Of course you can...
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage.
Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The FHA 203(k) mortgage program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property.
To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established.
The types of improvements that borrowers may make using Section 203(k) financing include:
-Structural alterations and reconstruction
-Modernization and improvements to the home's function
-Elimination of health and safety hazards
-Changes that improve appearance and eliminate obsolescence
-Reconditioning or replacing plumbing; installing a well and/or septic system
-Adding or replacing roofing, gutters, and downspouts
-Adding or replacing floors and/or floor treatments
-Major landscape work and site improvements
-Enhancing accessibility for a disabled person
-Making energy conservation improvements
The 203(k) Program is somewhat complicated and you must deal with an FHA approved lender, however, the program will allow you to obtain a mortgage and incorporate the necessary repairs into one mortgage payment. In addition, when selecting a general contractor to perform the rehab, you need to ensure the company is familiar with the 203k process and appropriate forms required. Streamlined 203k loans are also available for rehab/ home repairs under $35,000.
Advanced Restoration Corporation is located in New York and is a general contractor/ restoration company that specializes in the rehabilitation of homes in disrepair. We partner with various mortgage companies and have experience with contractor requirements associated with a 203 (k) loan.
For more information on partnering with an experienced 203(k) company ready to rebuild your dream house, contact Gary Matzelle at (516) 903-4107. Our service area includes: Nassau County, Suffolk County, Queens, Manhattan, Staten Island, Brooklyn and The Bronx.
Monday, June 8, 2009
Disaster Strikes Your Business...Now What?
You own a business in New York (on Long Island) and you think "it" will never happen to you...
2:30AM...An electrical short sparks a small fire inside the walls of your building.
2:35AM...Dust, framing and insulation immediately catch fire and burn intensely.
2:45AM...Tremendous heat from the now out-of-control blaze sets off the sprinkler system.
3:15AM...The fire department arrives and begins putting out the flames.
4:30AM...The fire is out, but there is immense fire, smoke and water damage.
6:30AM...You arrive at your office to find out your building and contents are severely damaged by water, fire and smoke.
Now What???
Having the proper insurance in the event of a disaster (from flooding and water damage to storm and wind damage) is essential to ensure your business will be able to continue after property damage occurs.
Inadequate insurance coverage can lead to major financial loss if your business is damaged, destroyed or simply interrupted for a period of time. Insurance policies vary, check with your agent or provider.
Meet with your insurance provider to review current coverage for such things as physical losses, flood coverage and business interruption.
-Understand what it covers and what it does not.
-Understand what your deductible is, if applicable.
-Consider how you will pay creditors and employees.
-Plan how you will provide for your own income if your business is interrupted.
-Find out what records your insurance provider will want to see after an emergency and store them in a safe place.
Knowing who to call in the event of a disaster is also essential to get your business back up and running with minimal downtime. Ensure you have a pre-established relationship with a full service property damage restoration company. This will allow you to mitigate damage to your property structure, as well as minimaize business disruption.
One more thing....Never let your insurance lapse!!!
Thursday, May 7, 2009
What is a Certified Restorer?
Fire Damage, Smoke Damage, Water Damage, Mold Remediation...
There are numerous Restoration companies throughout Long Island and the New York Metro area, but only a handful hold the title of Certified Restorer (CR). Disaster recovery is essential to any property structure, and Certified Restorers have the experience and ability to ensure all aspects of property damage are handled with the utmost professionalism. Advanced Restoration Corporation is one of the primary companies on Long Island with the CR designation.
Certified Restorer
The Certified Restorer program is a week-long master's course in damage repair offered to experienced contractors and restorers. The program's objective is to raise committed restorers to a higher level of professional ability.
The course addresses both buildings and personal property and is based on the structure and nature of materials, with the effects of various perils. A section on restoration theory addresses the mechanisms by which residue odors are removed. Toxic contamination, allergic response, water damage, contracts and insurance are also covered. The Certified Restorer course is widely recognized as the pre-eminent training program in damage repair.
The course addresses both buildings and personal property and is based on the structure and nature of materials, with the effects of various perils. A section on restoration theory addresses the mechanisms by which residue odors are removed. Toxic contamination, allergic response, water damage, contracts and insurance are also covered. The Certified Restorer course is widely recognized as the pre-eminent training program in damage repair.
Experience
All candidates to the Certified Restorer (CR) Program must be actively involved in restoration work at the time of application and have 3 or more years of active experience in disaster damage restoration as a technician, supervisor or estimator. The company or employer must be a member in good standing of RIA International.
Education
CR candidates must have attended one NIDR or WLI seminar or an RIA convention in the 12 months preceding the CR school.
Candidates must complete the Certified Restorer School and successfully pass the written examination with a score of 80% or better.
Candidates must complete the Certified Restorer School and successfully pass the written examination with a score of 80% or better.
Ethics Quiz
Candidates must complete an Ethics Quiz administered by the course instructor or a designated member of the CR Committee. A thorough understanding of the NIDR Code of Ethics and the Certified Restorer Code of Conduct is required.
Formal Report
On completion of the class, candidates must prepare a formal report or a thesis on an approved research topic.
Maintaining Certified Restorer Status
Certified Restorers must participate in a recertification program and maintain current membership in RIA International in order to retain their CR status. All CR continuing education is based on a three-year continuous cycle. Cycles for newly inducted CRs begin on the January 1 following the date of induction. All CRs are required to participate, and all required points must be earned within the time frame.
For more information on the Restoration Industry Association's advanced designations: CR, WLS, CRS, CMH, CMP and CFS, please contact the RIA Education Department at 443-878-1000.
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Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.
Advanced Restoration is also an expert in partnering with mortgage companies and families buying homes on Long Island. We are experienced in dealing with FHA approved 203 (k) loans associated with foreclosures, as well as streamlined 203(k) loans. For more information on having Advanced Restoration become your 203(k) contractor, please contact Gary Matzelle at (516) 903-4107.
Monday, April 27, 2009
Foreclosure Rescue Scams-HUD News Release
Source: HUD No. 09-033
Melanie Roussell (202) 708-0685 www.hud.gov/news/
For Release Monday
April 6, 2009
FEDERAL, STATE PARTNERS ANNOUNCE MULTI-AGENCY CRACKDOWN TARGETING FORECLOSURE RESCUE SCAMS, LOAN MODIFICATION FRAUD
Civil Enforcement Cases, State Enforcement Actions, Alert to Financial Institutions Among New Efforts to Protect American Homeowners Seeking Relief
WASHINGTON - As homeowners and communities throughout the country continue to face devastating consequences from the deep contraction in the economy and the housing market, the Obama Administration today announced a new coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. The new effort announced today aligns responses from federal law enforcement agencies, state investigators and prosecutors, civil enforcement authorities, and the private sector to protect homeowners seeking assistance under the Administration's Making Home Affordable program from criminal actors looking to perpetrate predatory schemes.
The U.S. Department of the Treasury, the U.S. Department of Justice (DOJ), the Department of Housing and Urban Development (HUD), the Federal Trade Commission (FTC), and the Attorney General of Illinois today discussed new initiatives to coordinate information and resources across agencies to maximize targeting and efficiency in fraud investigations, alert financial institutions to emerging schemes, step up enforcement actions and educate consumers to help those in financial trouble avoid becoming the victims of a loan modification or foreclosure rescue scam.
See full article...
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Advanced Restoration Corporation is a full-service restoration contractor with the ability to provide complete Rehabilitation & Restoration services to your new home! Water Damge? Mold? Structural Damage? We provide the expertise and knowledge to partner with you and your mortgage company today.
For more information about how Advanced Restoration can work with you on becoming the restoration contractor for your FHA 203(k) loan, please contact Gary Matzelle at (800) 693- 6263.
Saturday, April 25, 2009
203(k) Loan Application Process
The 203(k) Rehab Program is available through FHA approved lenders and is available in New York.
Here is a brief summary that provides the process for homeowners interested in applying for a 203(k) loan:
- Homebuyer Locates the Property.
- Preliminary Feasibility Analysis
- Sales Contract is Executed
- Homebuyer Selects Mortgage Lender
- Homebuyer Prepares Work Write-up and Cost Estimate.
- Lender Requests HUD Case Number
- Plan Reviewer Visits Property
- Appraiser Performs the Appraisal
- Lender Reviews the Application
- Issuance of Conditional Commitment
- Lender Prepares Firm Commitment Application
- Lender Issues Firm Commitment
- Mortgage Loan Closing
- Mortgage Insurance Endorsement
- Rehabilitation Construction Begins
- Releases from Rehabilitation Escrow Account
- Completion of Work/Final Inspection
Advanced Restoration Corporation is a full-service 203(k) restoration contractor with the ability to provide complete Rehabilitation & Restoration services to your new home! We work closely with all FHA approved lenders and are committed to providing professional service throughout the NY Metro area.
For more information about mortgage companies authorized to generate FHA 203(k) loans, please contact Gary Matzelle at (800) 693- 6263 or send an email to gmatzelle@advancedrestoration.com
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Wednesday, April 22, 2009
203(k) Re-hab/Restoration Loans- What Can You Do?
Pursuing an FHA 203(k) loan enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
The extent of the rehabilitation covered by a 203(k) may range from relatively minor (minimum of $5000 in cost) to virtual reconstruction: a home that has been demolished or will be restored as part of rehabilitation is eligible.
Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one-to-four unit structure.
The types of improvements that borrowers may make using Section 203(k) financing include:
-Structural alterations and reconstruction
-Modernization and improvements to the home's function
-Elimination of health and safety hazards
-Changes that improve appearance and eliminate obsolescence
-Reconditioning or replacing plumbing; installing a well and/or septic system
-Adding or replacing roofing, gutters, and downspouts
-Adding or replacing floors and/or floor treatments
-Major landscape work and site improvements
-Enhancing accessibility for a disabled person
-Making energy conservation improvements
Advanced Restoration Corporation is located in New York and is a general contractor/ restoration company that specializes in the rehabilitation of homes in disrepair. We are affiliated with various mortgage companies and have experience with contractor requirements associated with a 203 (k) loan.
For more information on partnering with an experienced company ready to rebuild your dream house, contact Gary Matzelle at (516)903-4107. Service area includes: Nassau County, Suffolk County, Queens, Manhattan, Staten Island, Brooklyn and The Bronx.
Wednesday, March 11, 2009
Streamlined 203 (k) Loan: Repairs/Foreclosure
Foreclosures continue to dominate the real estate market and as a result, many homes are left in disrepair. If you are contemplating the purchase of a foreclosure requiring minor repairs, you may want to consider a "Streamlined" 203(k) loan.
The Streamlined (k) Limited Repair Program was developed to augment FHA’s existing Section 203(k) rehabilitation program for less extensive repairs and improvement.
What improvements are eligible under the Streamlined 203 (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.
The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:
*Repair/Replacement of roofs, gutters and downspouts
*Repair/Replacement/upgrade of existing HVAC systems
*Repair/Replacement/upgrade of plumbing and electrical systems
*Repair/Replacement of flooring
*Minor remodeling, such as kitchens, which does not involve structural repairs
*Painting, both exterior and interior
* Weatherization, including storm windows and doors, insulation, weather stripping, etc.
*Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
*Accessibility improvements for persons with disabilities
* Lead-based paint stabilization or abatement of lead-based paint hazards
*Repair/replace/add exterior decks, patios, porches
*Basement finishing and remodeling, which does not involve structural repairs
*Basement waterproofing
*Window and door replacements and exterior wall re-siding
*Septic system and/or well repair or replacement
What are the minimum and maximum amounts for repair costs under this program?
Given the need for homeowners to make minor repairs without exhausting personal savings, and in consideration of the increasing cost of materials, the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000. This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient. When the repairs exceed $15,000, the mortgagee must perform or obtain an inspection to determine that all listed repairs were completed.
Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items as outlined.
Advanced Restoration is a full service property damage restoration company that specializes in the rehabilitation & restoration of homes and businesses. The company is family-owned and operated with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.
For more information on how Advanced Restoration can partner with you, please contact Gary Matzelle at (516) 903-4107, or send an email to gmatzelle@advancedrestoration.com.
Please visit our Website: http://www.advancedrestoration.com/
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