Storm Damage: What to Do After a Loss

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

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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Completeing Your Dream Home with the FHA 203K Loan!

Another challenge with the existing home inventory on the market is the condition of the property.  Whether it is REOs, foreclosures, short sales, or not, less people are presenting homes for sale in pristine condition.

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!

It is important to hire a general contractor that is familiar with the 203k process and requirements.  Advanced Restoration Corporation, a 203k contractor, was recently featured on NBC News4 New York regarding 203k loans, along with Continental Home Loans.

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

Time to Light the Fireplace!

The holidays are just around the corner, and that means families will be entertaining around their fireplaces.

Fire safety is a primary ingredient to enjoying the holiday season.  Some firepalce tips include: 

Installation & Use

•Check the fireplace to make sure it complies with
the local building codes.
•Use protective devices like glass doors or a screen
which stops sparks.

•Install a removable cap on the chimney.

•Avoid using flammable liquids or garbage to start a fire.

•Clean out all flammable materials near the fireplace.

•Use only seasoned hardwood and approved fire tools.
Cleaning

•Make sure the previous ashes are cleaned out before starting a fire.

•Use non-combustible containers to remove ashes and remove immediately from the home.

•Fireplaces require annual inspections and cleaning by a certified chimney sweep.

•Regular maintenance is needed to remove obstructions and creosote.
Safety

•Only close the damper when the fire has completely gone out.

•Never leave a fire burning unattended.

Common Origins of Fire Damage

Fire Starters

Fires have their origins and are classified accordingly.  Like any other kind of manmade disaster they have a starting point. The following are the most common starting points of fire along with some description of how they generally start:

Electrical – fires that originate from this source are due to overblown fuses and short circuits that throw spark.  Frayed wires which overheat in time make combustion possible.  Improper wire connections within the house structure must be promptly corrected.  Many fires that come from an electrical source do not emit any flame at first to show that fire is present.  But a smoke coming from any electrical source should not be taken lightly because of the fact that electrically originated fires are not known to cause a full blown flame.

Candles – candles are normally used when electric power is out and during special occasions.  To be on the safe side, trim the candle’s wick once it gets too long making the flame too large. Remove any flammable material like paper, linen, etc that may be caught by the flame.  Always position the candle at a safe distance from wind blown curtains, and use appropriate candle holders that will hold the candle upright to prevent it from toppling and causing a fire.  Be sure to put off any lighted candles before going to sleep.

Smoking – it is better not to smoke inside the house, but if you do then make sure to use ashtrays and to put out the cigarette before you retire to sleep or rest.  Also make it a habit to throw your unlit cigarette butts into proper waste receptacles to avoid littering.

Cleanup and Restoration

In case of a fire disaster, most residential owners due to the lack of any financial resources may want to do the cleaning and restoration procedures by themselves along with the other family members.  While this may sound practical and cost saving, the truth is you are facing a very daunting task of cleaning up the mess and restoring the house to its pre-fire disaster condition, consequently spending more money than expected. 

It would also entail an unnecessary length of time to accomplish the task because you do not have the appropriate tools, equipment and gear necessary to do the job efficiently and properly.  It is commonly suggested that an expert or professional fire damage cleaner is hired to do the job.  For at least they have the experience, the knowledge, correct equipment and adequate manpower to engage with the after effects of the fire.  Just make sure that the professional fire damage cleaner you hire has all the legal documents and certificates to prove that they can do the task of proper cleaning and restoration.

Fire may be inevitable but with the steps and tips above, it can be prevented or at least, damages may be mitigated.

Source:  Restoration Resource
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Advanced Restoration is a preferred service provider for insurance companies and services the New York Metro area.  Emergency Service.... (800) 693-6263. 

FHA 203k Loans Featured on NBC News4 New York!

NBC Reporter Lynda Baquero and 

Gary Matzelle from Advanced Restoration Corp.

On Monday, October 5th, NBC News4 New York featured a story on FHA 203k loans.  The  parties interviewed included Advanced Restoration Corporation, Continental Home Loans and a homeowner from Suffolk County, New York.

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

Ineligible 203k Streamlined Repairs

What items remain ineligible for the Streamlined (k) program?

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 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.

A question that has consistently come up over the past few weeks has been related to 203k streamlined repair exclusions.

Per HUDs' Mortgagee letter 2005-50, the following information will help identify what is not covered if you are applying for a 203k Streamlined loan.

Properties that require the following work items are not eligible for financing under the Streamlined 203(k) program:
· Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
· New construction (including room additions);
· Repair of structural damage;
· Repairs requiring detailed drawings or architectural exhibits;
· Landscaping or similar site amenity improvements;
· Any repair or improvement requiring a work schedule longer than six (6) months; or
· Rehabilitation activities that require more than two (2) payments per specialized contractor.

Mortgagors may not use the Streamlined (k) program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined (k) Eligible Work Items or that would:

· Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”;
· Require plans or architectural exhibits;
· Require a plan reviewer;
· Require more than six months to complete;
· Result in work not starting within 30 days after loan closing;
· Cause the mortgagor to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted. (FHA anticipates that, in a typical case, the mortgagor would be able to occupy the property after mortgage loan closing).

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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 partnering with Advanced Restoration, please contact Gary Matzelle at (516) 903-4107.

Disaster Kleenup International Is Hurricane Ready!

Disaster Kleenup International, North America's largest disaster restoration contracting organization is fully prepared to assist in hurricane preparation and disaster planning for the possible U.S. landfall of Hurricane Bill. Bill became the first hurricane of the season on Monday morning.


To aid with storm preparation, DKI has created an informational website, ww.hurricanecatastrophe.com.


The site, created in the wake of previous major hurricanes, offers numerous tips for property owners and managers on how to prepare weeks and months before a storm hits, what to do when a storm is identified as being on a path to potentially affect one's property, and how to protect one's own personal safety. The website also assists property owners and managers in taking inventory of their situation after the storm has left, and identifies sources of appropriate relief.

Additionally, there are helpful links to aid agencies and other resources, such as FEMA, the American Red Cross, and DKI, that can deliver necessary aid. In addition to the information on the website, DKI also has a 24-hour call center available to assist property owners who require emergency services. DKI's national catastrophe response unit maintains the industry's largest inventory of emergency services equipment and the largest labor pool in the U.S.

For those seeking to prepare before a storm, DKI also works collaboratively with property owners and managers to develop pre-disaster plans to further mitigate the costs of future catastrophes. For more information on DKI, visit www.hurricanecatastrophe.com, or contact our national account team at: 1.877.354.3566. To request emergency services in the wake of a disaster, call the DKI's Immediate Response Line 24 hours a day, 365 days a year at 1.888.735.0800. For a DKI member company in the New York Metro area, call Advanced Restoration Corporation at (800) 693-6263.

Advanced Restoration Corporation is located on Long Island. They are a 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. Their service area includes 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. Their 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.

Advanced Restoration is a preferred service provider for
insurance companies and real estate professionals.

For Emergency Service, call (800) 693-6263.

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.

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.

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.

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.

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

http://www.colleencraig.com

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?

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....

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.

CPSC Recall Alert: Battery Equalizer Fire Hazard

SmartSpark Energy Systems Recalls Battery Equalizers Due to Fire Hazard

FOR IMMEDIATE RELEASE

June 18, 2009 Release # 09-249

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: BattEQ Battery Equalizers
Units: About 800
Manufacturer: SmartSpark Energy Systems Inc., of Champaign, Ill.

Hazard: The recalled equalizers can overheat, posing a fire and burn hazard to consumers.
Incidents/Injuries: The firm has received one report of an equalizer that overheated which resulted in fire that caused damage to the equalizer and batteries. No injuries have been reported.

Description: The recalled battery equalizers are charge balancing devices designed to increase the performance and longevity of rechargeable batteries.

Sold at: Authorized distributors and retailers from July 2006 through March 2009 for about $300.
Manufactured in: United States

Remedy: Consumers should immediately stop using these recalled battery equalizers and contact SmartSpark for a full refund.

Consumer Contact: For additional information, contact SmartSpark at (800) 905-6137 anytime Monday through Friday or visit the firm’s Web site at

www.batteq.com

CPSC is still interested in receiving incident or injury reports that are either directly related to this product recall or involve a different hazard with the same product. Please tell us about it by visiting https://www.cpsc.gov/cgibin/incident.aspx

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Advanced Restoration Corporation is a family-owned and operated full-service property damage/disaster 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.

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.

Insurance Coverage
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!!!

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:

1. Homebuyer Locates the Property.
2. Preliminary Feasibility Analysis
3. Sales Contract is Executed
4. Homebuyer Selects Mortgage Lender
5. Homebuyer Prepares Work Write-up and Cost Estimate.
6. Lender Requests HUD Case Number
7. Plan Reviewer Visits Property
8. Appraiser Performs the Appraisal
9. Lender Reviews the Application
10. Issuance of Conditional Commitment
11. Lender Prepares Firm Commitment Application
12. Lender Issues Firm Commitment
13. Mortgage Loan Closing
14. Mortgage Insurance Endorsement
15. Rehabilitation Construction Begins
16. Releases from Rehabilitation Escrow Account
17. 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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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.

Portable Power Sources Recalled: Fire Hazard

Portable Power Sources Recalled Due to Fire Hazard

Source: CPSC

U.S. Consumer Product Safety Commission
Office of Information and Public Affairs
Washington, DC 20207

FOR IMMEDIATE RELEASEApril 2, 2009Release #09-182
Firm's Recall Hotline: (800) 233-0462CPSC Recall Hotline: (800) 638-2772CPSC Media Contact: (301) 504-7908

Best Buy Announces the Recall of Certain Rocketfish Universal Portable Power Sources Due to Fire HazardWASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: Rocketfish Model RF-INV80 Universal AC/DC/USB Portable Power Source

Units: About 1,400

Importer: Best Buy Co. Inc., of Richfield, Minn.

Hazard: While charging the battery, the power source can unexpectedly ignite, posing a fire hazard to consumers.

Incidents/Injuries: The firm has received three reports of fires resulting in minor property damage. No injuries reported.

Description: This recall involves Rocketfish Universal AC/DC/USB portal power sources with model number RF-INV80. The model number is printed on the back of the power source and “Rocketfish” is printed on the cover.

Sold exclusively at: Best Buy stores nationwide and at bestbuy.com from July 2008 through February 2009 for about $100.

Manufactured in: China

Remedy: Consumers should immediately stop using the recalled power sources and contact Best Buy to receive a gift card for the value of the product.

Consumer Contact: For additional information, contact Best Buy at (800) 233-0462 between 9 a.m. and 9 p.m. CT daily, or visit the firm’s Web site at

http://www.bestbuy.com/site/olspage.jsp?id=pcmcat114800050015&type=category

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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. Call us at: (800)693-6263.

Will an Emergency Shut You Down?

A professional facility manager or property owner does not question the possibility of a disaster, but asks “what could happen, and when?”

Whether it is a natural disaster such as severe storms, floods or earthquakes, or the far more common man-made emergencies which include fire, smoke, pipe burst or structural damage, a well prepared manager/owner is ready to handle these types of problems and has a business continuity plan in place.

Pre-Select a Restoration Contractor!

Pre-selecting a multi-faceted restoration contractor is a critical part of any written Emergency Procedure plan. The day after a disaster, when the management team is under incredible stress, is not the time to search for a restoration contractor or emergency response contractor.

Be Prepared, Plan Ahead!

Advanced Restoration, a DKI member company, provides the following:

- 24/7 Emergency Response
- Full Service Property Damage Restoration
- Experience, Expertise & Technology

Don't wait for an emergency to select your emergency contractor. Look for the best service and for the contractor who's willing to work with you when your disaster strikes...even if it's Christmas Eve or a Sunday night.

As a full service restoration company, Advanced Restoration is capable of handling major damage to a structure, including:

Water Damage Mitigation

Mold Remediation

Fire & Smoke Damage

Board-Up and Tarping

Complete Reconstruction

Start protecting your investments today! Call Advanced Restoration, a DKI Member Company that is ready to partner with you. Telephone: (800) 693-6263. Advanced Restoration services the New York Metro area, including Nassau and Suffolk Counties.

Advanced Restoration Corporation Joins Disaster Kleenup International

Disaster Kleenup International, Inc., North America's largest disaster restoration contracting organization, today announced that Advanced Restoration Corporation of West Babylon, New York, has joined the DKI network. Advanced Restoration Corporation has provided insurance restoration in the West Babylon marketplace since 1990.

By virtue of its DKI membership, Advanced Restoration Corporation can employ DKI's 24 hour call center, its DIAMOND claims tracking technology, and other tools to enhance their ability to serve their insurance and corporate customers. Advanced Restoration Corporation also gains access to DKI training seminars and workshops which ensure that they remain abreast of all changes in this rapidly evolving industry.

"We are delighted to welcome Advanced Restoration Corporation into the rapidly growing DKI network," stated Dale Sailer, DKI's President. "Advanced Restoration Corporation's commitment to quick response, superior workmanship and outstanding customer service reaffirms DKI's position in the marketplace as The Source for Quality Restoration. We look forward to a long and rewarding association."


Advanced Restoration Corporation President Brian G. Martin is pleased that the company is a part of the DKI network, giving them the opportunity to work in partnership with other quality firms. The DKI network will allow Advanced Restoration Corporation to expand their scope of service, introduce them to new markets and ensure the company's success long into the future.


In addition to the benefits of DKI's technology and training capabilities, Advanced Restoration Corporation will also be able to utilize the Disaster Kleenup branding in its marketing efforts, participate in its various coop programs, and leverage DKI's corporate marketing efforts.
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### About DKI Disaster Kleenup International, Inc., headquartered in Wood Dale, IL, is the largest disaster restoration organization in North America. DKI member companies provide full service restoration to their customers: emergency response, water damage mitigation, mold remediation, complete reconstruction and much more, 24 hours a day, 365 days a year. DKI returns damaged property to its pre-loss condition quickly and efficiently, delivering complete satisfaction to our consumer, insurance, and corporate customers.


For more information about Disaster Kleenup International, Inc., visit our website at www.disasterkleenup.com or contact Dan Cassara at 630.350.3000 x254 or email at dcassara@disasterkleenup.com. Contact: Dan Cassara Phone: 630.350.3000 x254 Email: dcassara@disasterkleenup.com

Fire Extinguisher Recall Alert

The US Consumer Product Safety Commission recently released information related to Kidde Fire Extinguishers. It is imperative to review this recall information and check the fire extinguishers in your home or business.

Source: CPSC

FOR IMMEDIATE RELEASE

March 12, 2009 Release # 09-151
Firm’s Recall Hotline: (888) 345-4407CPSC Recall Hotline: (800) 638-2772CPSC Media Contact: (301) 504-7908

Kidde Recalls to Replace Fire Extinguishers Due to Failure to Operate

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of product: Kidde XL Fire Extinguishers
Units: About 167,000
Distributor: Walter Kidde Portable Equipment Inc., of Mebane, N.C.
Hazard: The pressurized cylinders in the recalled fire extinguishers could lose pressure and fail to operate. In the event of a fire, this failure could put a consumer and property at risk.
Incidents/Injuries: None reported.

Description: This recall involves the Kidde XL Fire Extinguishers with model numbers FX340SC, FX340H, FX340GW, XL5MR, FX210R, FX340SC-2, FX210W, XL2.5TCZ-4, E-340-3 and with manufacture dates between October 2007 and April 2008. “Kidde” and the model number can be found on the label on the front of the extinguisher. The manufacture year is on the bottom of the extinguisher. If your extinguisher is one of the listed model numbers and is marked with the year 07 or 08, contact Kidde to determine if you have a recalled extinguisher.

Sold at: Department, home, and hardware stores nationwide from October 2007 through April 2008 for about $35.
Manufactured in: Mexico
Remedy: Consumers should immediately inspect the pressure gauge. If it points to the red zone, contact Kidde to receive a free replacement extinguisher. If the gauge is not in the red zone, but you have questions about an extinguisher within the listed model numbers, please contact Kidde for additional information.

Consumer Contact: For additional information, contact Kidde at (888) 345-4407 between 8 a.m. and 5 p.m. ET Monday through Friday or visit the firm’s Web site at

www.Kidde.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.

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. Our company is dedicated to serving our clients with courteous and prompt service. We take the utmost pride in the craftsmanship of our work.

As certified specialists in water mitigation and fire/smoke restoration, we have the knowledge, expertise and experience to deal with all types of property damage. Our professional staff is also trained in all aspects of mold remediation and damage appraisals. Service area: Nassau County, Suffolk County and the NY Boroughs. Advanced Restoration is now a member of DKI.