In November and December, Realtors across the Tri-Cities will come together to participate in service of their communities by raising food and funds for 2nd Harvest.
Bags will be dropped off on their neighborhood doorsteps and bags and donations will be picked up December 2nd, 2011 and all donations will be be delivered to KNDU the morning of December 3, 2011.
November 30th is the last day to take advantage of this $8,000 first-time homebuyers credit. Homes in Kennewick, Pasco, Richland, West Richland and surrounding areas are a great buy right now and mortgage rates are low, so you’ll want to get onboard to get qualified for this opportunity!!
To get a good understanding of what all is involved in this process, please watch this video which should give you a better feel for how this credit works.
The Tri-City economy has mostly held its own during the national recession, but unexpected medical bills, job loss, divorce and other hardships mean some homeowners are struggling to make mortgage payments.
Loan modifications, which usually involve rearranging the terms or length of the mortgage, are one method the federal government, housing counselors and lenders are using to help people keep their homes.
The administration earlier this year introduced the Making Home Affordable program, which was designed to help 7 million to 9 million homeowners refinance or modify their mortgages to more affordable levels.
More than 230,000 modifications are in the trial stage, according to the Making Home Affordable website. The modification program is on pace to assist 3 millions to 4 million homeowners in the next three years, the site said.
The program is helping, said Liza Beam, housing program director for Consumer Credit Counseling Service in Kennewick.
“Even though mortgage companies are willing to work with people, they’re way behind,” she said.
The process often takes three to six months, Beam said.
About 70 clients in trouble with their mortgage payments have received counseling at CCCS since October, said Laurie Tufford, the agency’s chief executive director. CCCS is approved by the U.S. Department of Housing and Urban Development to provide mortgage counseling services.
It used to be borrowers needed to be 90 days behind on payments before lenders would work to make changes, but now mortgage companies are becoming more lenient, she said,
The Making Home Affordable refinance program targets homeowners who are current on payments but haven’t been able to refinance because their homes values have dropped, according to the program’s website.
“There’s still people who fall through the cracks, but I think it’s making a difference,” Beam said.
Tufford explained that modifications come in a variety of forms.
A forbearance allows missed payments to be divided up into smaller chunks and paid off incrementally, along with regular payments, she said.
Sometimes interest rates are lowered and other times the length of the loan is extended.
There are some cases when homeowners simply can’t afford to keep the house.
“Sometimes keeping the house isn’t the best option.” Beam said.
In an attempt to increase assistance to borrowers, HUD announced last month that its Federal Housing Administration is changing its loan modification program to align with Making Home Affordable, according to the Washington State Department of Financial Institutions.
Through the Helping Families Save Their Homes Act of 2009, qualified FHA borrowers can start the process of modifying the loan before they get drastically behind on payments, said HUD spokesman Lee Jones.
He called the new alignment between FHA’S program and the Making Home Affordable “a bit more aggressive.”
“Making Home Affordable is essentially nothing more than getting the lenders and the borrowers at the same table to change the loan, Jones said. “It allows the borrower to have a conversation with the lender…before they get into real trouble.”
Lenders who are FHA-approved already agree to participate in services to help troubled borrowers who get three months behind in their loans.
One tool to lower monthly payments is a partial claim, which involves lenders allowing borrowers to pay principal and interest on only part of the loan, Jones said.
For a $100,000 loan, for example, a partial claim might allow a borrower to pay on $75,000, while the other $25,000 is deferred until the house is sold, he said.
Jones didn’t know how big the program’s benefits would be, but said its success depends mostly on troubled borrowers making the first move.
And persistence is key, said Dee Taylor, director of the Homeownership Division of the Washington State Housing Finance Commission, which helps direct funding to housing counselors.
“I think they will work,” she said. “You just have to be persistent and really get the lender to cooperate.”
Mark Manthei, a broker for Arboretum Mortgage in Kennewick, also said patience is necessary during the loan modification process. The housing market in Tri-Cities is a bit different than in many areas of the country, as home values have held fairly steady, he said.
The median and average sales prices were down about 1 percent during the first half of the year compared with the same time period in 2008, according to information from the Tri-City Association of Realtors.
A new report from First American CoreLogic, a national real estate data and analysis company, shows 9,454 mortgage properties — or more than 21 percent — in the Tri-Cities are in negative equity, meaning the borrower owes more than the home is worth.
That’s lower than the national rate of more than 32 percent, according to the company.
Arboretum doesn’t perform modifications, Manthei said, but sends clients to lenders for help.
Anyone seeking modification must be able to prove they can afford it, Manthei said. “People aren’t financially prepared for emergencies,” he said, adding that clients of his working through the modification process, all have steady employment.
“The tightening of guidelines is forcing people to stay in more affordable housing,” he said. “Going forward, I think that’s going to help.”
Source: Tri-City Herald
Source: Tri-City Herald
Savvy Tri-Cities homeowners may be able to put some money back in their pockets if they decide to make their home energy efficient this year, thanks to the federal stimulus package.
That means adding insulation, energy efficient windows or heating and air conditioning systems can get them up to $1,500 in energy tax credits. Additional rebates also are available from local utility companies.
Corey Waite of Richland plans to claim 30 percent of about $330 he spent to buy a solar ventilation fan in May on next year’s federal income tax return. The fan works like an exhaust and helps keep his attic cool, reducing the need for air conditioning, said Waite, who has set up photovoltaic solar panels on the roof of his home to generate electricity.
The federal American Recovery and Reinvestment Act, which extended and modified many consumer tax incentives introduced by previous legislation also allows homeowners who install alternative energy equipment such as solar water heaters, geothermal heat pumps and small wind turbines to get a tax credit equal to 30 percent of the equipment cost.
A solar water heater would be ideal for Mid-Columbia residents to reduce their electricity consumption, Waite said. The cost of a high-tech solar water heater can range from $1,500 to $2,000, he said.
“Energy efficiency is the region’s least cost, least risky energy resource,” Darroll Clark, Franklin PUD’s, energy services manager. Local utility companies in the Tri-Cities have long promoted energy conservation, he said. Recently, Franklin PUD and Benton PUD began a new weatherization and heating, ventilating and air conditioning, or HVAC, rebate program for customers.
The new rebate program is not related to the stimulus package, said PUD spokeswoman Karen Miller. But the goal is the same: to save energy and help customers save money, she said.
It’s part of Initiative 937, which was approved by the state Legislature in 2006, and required electric utilities with 25,000 or more customers to meet targets for the use of renewable energy and energy conservation, she said. The rebate programs are run in partnership with power supplier Bonneville Power Administration.
Four of the six Tri-Citians the Herald called who recently had a new heat pump installed at their homes said they knew about some rebates being offered but didn’t know the details.
Not many taxpayers know the difference between credits and rebates either, said Robert Rojas, sales manager at Perfection Glass in Kennewick, one of many Benton PUD-approved contractors for the residential energy efficiency program. He said he’s been spending time explaining the differences and options to consumers.
Insulation rebates range from 5 cents to 85 cents a square foot depending on location (floor, attic or wall) and home type, and window replacement rebates are $6 a square foot, he said. On average, it amounts to about $96 for a $400 window, Rojas said.
Rebates on HVAC systems are based on verifiable efficiencies, said Troy Berglund, spokesman for Benton REA, which is also participating in the window and HVAC replacement program. Generally, each utility company works with certified contractors to help consumers get rebates.
Also, many HVAC equipment manufacturers are offering discounts, which added to tax credits and rebates, helps bring down the cost by almost 50 percent, said Aaron DeWitt, vice president of Total Energy Management in Richland. The incentives allow consumers to buy higher-end systems at cheaper prices, he said, adding an HVAC system can cost from $7,000 to $11,000.
Business has increased since the rebate and tax credit programs kicked in, DeWitt said. Mostly customers are replacing their old systems, he said. His company is also approved by Benton PUD.
Chris Garris also has seen an increase in calls from customers shopping for heat pumps. He’s part of the sales team at Kennewick’s Bruce, Inc., another Benton PUD-approved contractor specializing in installing different kinds of heat pumps, he said.
Some people do know about the rebates, Garris said. “The stimulus package has helped,” he said. Also the PUDs have done a great job of getting the information out, he said.
Also, local utility companies, including Richland Energy Services, are offering their customers a $1,500 rebate as part of a pilot program, to install a qualified ductless heating and cooling system that potentially can lower utility bills by more than 25 percent. The system may qualify for a tax credit as well, said Clark of Franklin PUD.
Recently, manufactured homes became eligible for the program, said Berglund of Benton REA, which serves about 10,000 customers from West Richland to the top of White Pass. Customers have asked the utility to offer programs to help reduce energy consumption, he said.
Local utility companies also offer other programs to promote energy conservation, said Dawn Senger, energy specialist for Richland. They include helping consumers recycle their refrigerators and giving rebates for buying energy efficient appliances like dishwashers, clothes washers and water heaters that qualify under the program. Most rebates are about $25.
Richland also offers low interest loans up to $15,000 for energy conservation improvements. It includes qualifying heat pumps, windows and entry doors, insulation, duct sealing, appliances and solar applications, she said.
Franklin PUD’s low-interest loans range from $400 to $7,000 to single-family homes, and up to $10,000 for multi-family units, said Clark of Franklin PUD.
Local utility companies also have some incentives for its commercial customers who want to conserve energy, Clark said. “We have run our programs differently, but we’re trying to make them the same, so there’s less confusion.”
About 80 local businesses showed potential customers what they have to offer at the Tri-City Regional Chamber of Commerce’s 2009 Open for Business Expo.
Lori Mattson, Tri-City Regional Chamber of Commerce president and CEO, said attendance seemed good, although it appeared to be down from the 750 attendees last year. Business owners and managers new to the expo didn’t notice the drop.
“I think it was pretty good,” said Joe Coyne, Heartland Payment Systems territory manager. “I’ve met a number of people and found some business opportunities. That was the point of the event, said Mattson.
“Business owners and the general public could walk around and meet business owners, learn about what businesses are in the Tri-Cities and make connections,” she said.
LeMaster Daniels kept visitors coming by its booth with a ‘grab cash bubble’ filled with $1 bills. Expo attendees could hop into the bubble and had 30 seconds to grab as much cash as they could.
“It’s brought a lot of people over,” said Patty Oliveria, LeMaster Daniels office manager, who has attended three of the events. “It seems to be going just as well as in the past,” she said. “We’re seeing a lot of people we know and a lot of new people. Its always fun to meet new businesses.”
Many booths had door prizes ad elaborate decorations, but none was as visible as Gesa Credit Union.
Gesa’s two spaces were decorated in a jungle theme, with shrieking monkeys, paper palm trees, employees in safari gear and a spinning prize wheel. “This is a lot of fun.” said James Delyea, branch operations vice president. “We’re celebrating.” Gesa launched Venture, a new banking service for small business owners, at the expo.
“This is a really visible way to appeal to the people who should be doing business with us,” Delyea. “People are shying away from a lot of banks….and it’s become harder to get credit. So businesses today have been very receptive.”
Whether this was the first trip or just the most recent, many attendees said they get their money’s worth from the expo.
“When you pick things you go to, you’ve really got to make sure you chose well. I think this was a good pick,” Coyne said.
Attending businesses included large, like Kadlec Regional Medical Center and CH2M Hill Plateau Remediation Co., to the small businesses.
The Tri-City Chamber of Commerce wants to help the Tri-Cities remain vibrant in the face of the national economic slump.
There’s no better way for Tri-Citians to show they care about their own community than to shop local, said chamber officials.
Tuesday, the chamber launched a new campaign, “Go Local: Shop Tri-Cties First” to encourage consumers to keep their dollars in town.
“Although the Tri-Cities is holding steadily, it is not immune to the national recession,” said Lori Mattson, President & CEO of the chamber. In the past year, the local construction industry has taken a hit, along with banking and retail, she said.
But by shopping at local stores and using local banks and credit unions, each person can make a difference, Mattson said.
Each dollar spent at a local business returns three times more money to the Tri-City economy, she said. It helps expand the community’s tax base and pays for communitywide projects to make the Tri-Cities a wonderful place to live, she said.
As part of the “Go Local” campaign, the chamber will run TV and radio spots on local stations and is asking its estimated 1,350 members to display a poster and use the campaign logo on their websites.
Members can also pay $1,000 to be featured in an ad. The chamber is working with P.S. Media on the campaign, which is expected to run through summer.
Businesses will offer discounts and drawing to support the campaign and attract consumers.
The campaign also is designed to teach consumers that buying local is easier and sometimes cheaper than online shopping, she said.
“Go Local” will make commmunity members pause and think, “Are my dollars staying local?” Mattson said.
Thriving businesses create jobs, keep people employed and create demand for other services, she said. Also, it can be “greener” because they don’t require as much fossil fuels to ship products to you, Mattson said.
The campaign is more than a buzz, it”ll be a constant reminder for everyone to support the Tri-Cities, Mattson, said. “It shows you care about the community.”
