Using Home Generators? Here's How To Stay Safe.

Carbon monoxide is an odorless, colorless, poisonous gas. It kills more 400 people die in their homes each year.

Carbon monoxide poisoning is especially common during periods of power outage. This is because homeowners throughout Tustin fire up their personal home power generators.

Home generators are a leading cause of poisoning by carbon monoxide and, in this 4-minute from NBC's The Today Show, you'll learn about home generators, how they operate, and the safety measures everyone homeowner should undertake.

A few basic home generator safety rules, as described in the interview, include :

• Never modify a generator or its engine
• Keep a 10-foot distance between the generator and your home
• Always point the generator's exhaust away from your home

Furthermore, make sure your home has an ample supply of carbon monoxide detectors, and that they're operational.

One of the video's highlights is clever illustration employing a vase of water and a dash of red dye. The demonstration shows just how few carbon monoxide particles are required to cause injury and/or death to a person in your household.

Therefore, if you own a home generator, take 4 minutes watch this video. Safety when home generators is paramount to your health.

Housing Starts Rising; New Construction Turns The Corner?

Another day, another signal that the market for newly-built homes is improving.

Single-Family Housing Starts rose to a seasonally-adjusted, annualized 430,000 units in October -- a 4 percent increase from September and the highest reading in 3 months.

A "Housing Start" is a home on which ground has been broken.

The increase in surprised Wall Street analysts, although it shouldn't have.  

Earlier this week, the National Association of Homebuilders showed that Homebuilder Confidence is at its highest point since May 2010, the effect of better market conditions and more sold units. Rising housing starts amid a lift in builder confidence is to be expected -- the two metrics have moved with loose correlation since mid-2000.

However, as with everything in real estate, Single-Family Housing Starts volume varied by location. The nation's 4 regions posted wide-ranging results :

• Northeast Region : + 10.0% from September
• Midwest Region : -4.1% from September
• South Region : +11.3% from September
• West Region : -10.2% from September

Buyers of new construction in Irvine can infer two key points from last month's data.

First, with more homes will being built, home supply should rise, thereby softening pressure on rising home prices. This should help keep homes affordable.

However, the second point is that, with builder confidence rising, buyers are less likely to win price concessions and "free upgrades" in negotiations.

The last 6 weeks of 2011 may be your optimal time to buy new construction. Home prices remain affordable and mortgage rates are rock-bottom. In addition, because there are typically fewer active home buyers during the holidays, you'll be more likely to locate one of the few remaining new construction "deals".

Talk to your real estate agent about local trends and new construction. 

Homebuilders Getting Optimistic; Higher Home Prices Ahead?

Homebuilder confidence continues to rise.

Just two months after falling to a multi-month low, the Housing Market Index surged again in November, climbing another three points to 21. It's the second straight month that the HMI posted a 3-point gain, catapulting the index to an 18-month.

The Housing Market Index is monthly report from the National Association of Homebuilders. It's meant to measure confidence among the nation's homebuilders, scored on a scale of 1-100.

When homebuilder confidence reads 50 or better, it reflects favorable conditions for homebuilders. Readings below 50 reflect unfavorable conditions.

The Housing Market Index has not read north of 50 since April 2006.

As an index, the HMI is actually a composite reading; the result of three separate surveys sent to homebuilders each month. The National Association of Homebuilders asks it members about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current "foot traffic".

In November, builder responses were stronger in all 3 categories :

• Current Single-Family Sales : 20 (+3 from October)
• Projected Single-Family Sales : 25 (+1 from October)
• Buyer Foot Traffic : 15 (+1 from October)

And, beyond the headline data, there is an important, noteworthy item in this month's Housing Market Index.

In November, "Current Single Family Sales" climbed 3 points for the second straight month, and is now at the highest point since May 2010 -- the month after last year's home buyer tax credit expired. And, this increase in sales volume is occurring as new home construction is falling, thereby reducing home inventory nationwide.

That's an important point for Irvine home buyers.

With more new home sales and fewer new home listings, prices are likely to increase into 2012. Especially with home builders predicting higher sales levels over the next 6 months, and seeing higher levels of buyer foot traffic through their properties today.

For now, though, home prices are stable and mortgage rates are low. This creates low-cost homeownership throughout California , and helps new home construction remain affordable.

If you're in the market for new home construction, the next 60 days may prove to be your best time to get "a deal".

Government Releases Additional HARP Guidance For Underwater Homeowners

Tuesday, Fannie Mae and Freddie Mac unveiled lender instructions for the government's revamped HARP program, kick-starting a potential refinance frenzy across California and nationwide.

HARP stands for Home Affordable Refinance Program. The updated program is meant to give "underwater homeowners" an opportunity to refinance at today's low mortgage rates.

In the two-plus years since its launch, HARP's first iteration helped fewer than 900,000 homeowners. HARP II, by contrast, is expected to reach millions.

Lenders begin taking HARP II loan applications December 1, 2011.

To apply for HARP, applicants must first meet 4 basic criteria :

1. The existing mortgage must be guaranteed by Fannie Mae or by Freddie Mac
2. The existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009
3. The mortgage payment history must be perfect going back 6 months
4. The mortgage payment history may not include more than one 30-day late payment going back 12 months 

If the above criteria are met, HARP applicants will like what they see.

For HARP applicants, loan-level pricing adjustments are waived in full for loans with terms of 20 years or fewer; and maxed at 0.75 for loans with terms in excess of 20 years.

This will result in dramatically lower mortgages rates for HARP applicants -- especially those with credit scores below 740. Some applicants will find HARP mortgage rates lower than for a "traditional" conventional mortgage.

In addition, HARP applicants are exempted from the standard waiting period following a bankruptcy or foreclosure, which is 4 years and 7 years, respectively.

These two items are inclusionary and should help HARP reach a broader U.S. audience.

HARP contains exclusionary policies, too.

1. The "unlimited LTV" feature only applies to fixed rate loans or 30 years or fewer. ARMs are capped at 105% loan-to-value.
2. Applicants must be "requalified" if the proposed mortgage payment exceeds the current payment by 20%.
3. Applicants must benefit from either a lower payment, or a "more stable" product to qualify

And, of course, HARP can only be used once. 

Fannie Mae and Freddie Mac will adopt slight variations of the same HARP guidelines so make sure to check with your loan officer for the complete list of HARP eligibility requirements.

Foreclosure Filings Climbing; 4 States Account For Half Of Nationwide Activity

Foreclosed homes are a hot market throughout California -- and supplies are ramping up.

According to foreclosure-tracking firm RealtyTrac, October's foreclosure filings rose 7 percent to 231,000 filings nationwide.

A "foreclosure filing" is any one of the following foreclosure-related events : A default notice on a home; a scheduled auction for a home; or, a bank repossession of a home. Because of this definition, a single home can account for up to 3 foreclosure filings -- one from each category. 

Because of this, we may glean more relevant insight into the foreclosure market by separating RealtyTrac's foreclosure report into "event types".

• Default Notices : Up 10% from September 2011; Down 31% from October 2010.
• Scheduled Auctions : Up 8% from September 2011; Down 38% from October 2010.
• Bank Repossessions : Up 4% from September 2011; Down 27% from October 2010.

These breakdowns suggest that, although improved as compared to last year, the foreclosure market is growing. At least, it's growing in some parts of the country. We can't forget that -- like everything real estate -- foreclosures are a local phenomenon. 

In October, just 4 states accounted for more than half of the country's foreclosure filings. Those four states -- California, Florida, Michigan and Illinois -- represent just 26% of the U.S. population.

Even on a per household basis, the figures remain disproportionate :

• Top 10 Foreclosure States : 1 foreclosure per 341 households, on average
• Bottom 10 Foreclosure States : 1 foreclosure per 7,434 households, on average

The nationwide foreclosure rate was 1 foreclosure per 563 households.

As a Tustin home buyer, foreclosures are worth watching. They account for 18% of home resales nationwide and, in some markets, can be bought at steep discounts versus a comparable "non-distressed" home. That is part of their appeal, in fact.

But just because foreclosed properties can be a "deal", it doesn't mean you should rush to buy one. Buying a foreclosed home from a bank is different from buying a non-foreclosed home from a "person". The contracts and negotiation process are different, and foreclosed homes are sometimes sold as-is.

"As-is" means "this home may have defects".

Therefore, if you plan to buy a foreclosed home, talk with a real estate professional first. You can learn a lot about the housing market online, but with respect to writing an offer on a property, you'll want an experienced agent on your side.

Using Space Heaters? Use This Safety Advice.

Space heaters are popular among homeowners in Irvine because, as portable appliances, they can heat a small space quickly and inexpensively. It requires less energy to run a space heater than to raise the temperature of an entire home by a few degrees.

However, space heaters can be dangerous, too.

In its November 2011 report, the National Fire Protection Association reveals that heating equipment was involved in an estimated 58,900 home structure fires, 480 civilian deaths, 1,520 civilian injuries and more than $1.1 billion in damage.

Space heaters caused a disproportionate percentage of the accidents : 

• 79% of all home heating-related civilian deaths 
• 66% of all home heating-related civilian injuries 
• 52% of all home heating-related property damage

If you use space heaters, therefore, please remember to read (and follow) the manufacturer's instructions for proper usage, and to obey basic safety standards.

First, never place anything flammable within three feet of a space heater. Space heaters get very hot, very quickly and can ignite rugs, paper and curtains.

Next, make sure your space heater is placed on the floor, on level ground. Do not rest it on books, or on furniture.

Also, make sure to turn space heaters off when leaving a room, or when going to bed. Space heaters are not meant to replace whole-home heating and should not be left unattended under any circumstance.

The Underwriters Laboratory makes a list of general safety tips available on its website. Considering how much damage space heaters can cause, the list is worth committing to memory.

Banks Resume Tightening Mortgage Guidelines

As part of its quarterly survey to member banks nationwide, the Federal Reserve asked senior loan officers whether last quarter's "prime" residential mortgage guidelines have tightened, loosened, or remained as-is.

A "prime" borrower is defined as one with a well-documented, high-performance credit history; with low debt-to-income ratios; and who chooses to finance a home via a traditional fixed-rate or adjustable-rate mortgage product.

After a 2-year easing cycle, the nation's biggest bank banks report that they've reversed course, and are raising the bar on mortgage approvals.

For the period July-September 2010, 88% of responding loan officers admitted to tightening their prime guidelines, or leaving them "basically unchanged".

If you've applied for a home loan of late, you've experienced this first-hand.

High delinquency rates and defaults since 2007 have caused the banks to rethink what they will lend, and to whom. As a result, today's mortgage lenders scrutinize assets, incomes, and credit scores to make sure that nothing "slips by".

For today's home buyers and would-be refinancers, the mortgage approval process can be challenging as compared to how it looked just 18 months ago.

• Minimum credit scores requirements are higher today
• Downpayment/equity requirements are larger today
• Debt-to-Income ratio requirements are more strict today

In other words, although mortgage rates are the lowest that they've been in history, fewer applicants can qualify. And, with more the housing market still in recovery, it's likely that guidelines will tighten again in 2012.

Therefore, if you're among the many people in Irvine wondering if it's the right time to buy a home or refinance, consider that, although mortgage rates may fall, approval standards may not.

The best rate in the world won't matter if you're not eligible to lock it.