Page 2 — Real
Estate Today October 2010
139 E. William St Albert Lea, MN 56007 Modern apartments reflecting yesterday’s charm
Add value and appeal with four simple home maintenance projects (ARA) - Regardless of whether you’re staying or thinking of selling, you want your home to look its best and be an asset to the neighborhood. Attractive homes accrue in value and help build strong, thriving communities. Plus, you’ll enjoy living in your house more if you’re happy to come home to it every night. Projects to improve the value and appeal of your home don’t have to cost a lot of money or take a lot of time to accomplish, according to Lou Manfredini, Ace Hardware’s home expert. “There are four easy and inex-
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Features & Amenities
• A variety of unique floor plans for one and two bedroom apartments • Central heating and cooling, controlled in each residence • Full kitchen including refrigerator, oven, dishwasher and microwave • Laundry room and trash chute on each floor • Community room and TV room • Second floor patio/deck area for all residents • Storage areas on each floor • Secured lobby entrance • On-site management office • Ample surface parking with 16 underground parking stalls available for rental CONVENIENT CENTRAL LOCATION The Lofts at Lea Center are an unequaled, affordably-priced apartment location within the Albert Lea area. Income restrictions apply
pensive projects that I recommend every homeowner undertake.”
Update your curb appeal
Curb appeal is, quite simply, what everyone sees first when their car pulls up to your house. “Your mother’s advice holds true here - nothing is more important than a good first impression,” says Manfredini. “Strong curb appeal will help set a positive tone for the rest of the house.” Walk out to your sidewalk and take a look at the front of your house, checking for anything that needs to be cared for. A good first step is to update your exterior hardware, including house numbers, which often become dirty and dated over time.
Create a luscious lawn
Green, lush lawns always receive a lot of attention. Help your lawn reach its full potential by providing it with the proper fertilizer and grass seed. Manfredini recommends making sure that your lawn receives between 1 and 1 1/2 inches of water per week, includ-
ing rainfall.
Groom your garden
Nothing compliments a great lawn more than a well-manicured garden. After the cold winter months, gardens and flowerbeds can be left looking unruly. Everyone wants outdoor spaces where they can enjoy spending time, so it’s important that you tidy up these areas. An easy way to do this is by spreading new mulch. Traditional mulch is a great option, but if you are looking for something that will last, consider Rubberific Rubber Mulch, which will last for 10 years. “Homeowners should also trim and prune shrubs and trees to create a refined look,” says Manfredini. “A ‘jungle theme’ makes your house look unkempt.” Electric hedge trimmers can make this project simple and easy. Finally, give your garden a pop of color by planting inexpensive annuals, such as marigolds and snapdragons.
Spruce up with paint
Now that the exterior of your home is looking great, spend some time on your interior. “Interior painting is one of the most inexpensive and simple projects that homeowners can do,” says Manfredini. “And, it makes a huge difference!” Choose neutral paint colors over bold ones. Equally important to the color is the type of paint you select. Ace Paint recently launched a new paint called Royal Finest, which is the first paint to combine ultimate stain resistance and environmental friendliness. Royal Finest is made with Scotchgard Protector from 3M, so stains and scuffmarks wipe right off. It is also lowodor, low VOC and GREEN WISE certified, so you know it’s eco-friendly. For more tips and advice on updating your home, visit www.acehardware. com or stop by your neighborhood Ace Hardware store.
Real Estate Today October 2010 — Page 7
Weighing the costs of walking away from an upside-down mortgage (ARA) - Owing more on your mortgage than your house is worth may seem like a bad investment. But the alternative - choosing to default on your mortgage even if you can afford the monthly payments - will take a significant toll on your credit rating. “Strategically defaulting - deciding to stop paying your mortgage regardless of your ability to actually carry the debt - will have a far-reaching, long-lasting impact on your ability to secure future credit,” says Maxine Sweet, vice president of public education for global information services company Experian, one of the three large credit reporting companies that receive and update consumer credit histories which are scored to help predict risk. “It’s by no means a move to be undertaken lightly.” About 355,000 borrowers strategically defaulted in the first half of 2009, according to research conducted as part of the Experian-Oliver Wyman Market Intelligence Reports. Interestingly, Experian and Oliver Wyman found that the homeowners most likely to strategically default were also those with the highest credit scores. While it may seem like a good move to simply stop paying and walk away from a bad investment, keep several factors in mind when you consider strategic default: * It’s very final. Strategic default will lead to foreclosure by the lender. Foreclosure will negatively impact your credit report and scores. In fact, only bankruptcy will affect your scores more adversely than foreclosure. For more information on just how severe the impact can be, VantageScore LLC recently completed a study that evaluates the effect that foreclosures, bankruptcies, short sales, and various mortgage pro-
grams have on consumers’ VantageScore credit scores. * The default will remain on your credit report for seven years. Since credit scores are based on information in your credit report, the foreclosure will greatly impact your credit scores during those seven years. Securing other credit at reasonable terms and rates will be very difficult, if not impossible, during that time. * Potential lenders aren’t the only ones looking at credit reports these days. Insurers, employers and even cell phone companies are considering the creditworthiness of those who want to do business with them. By impacting your credit report, a strategic default may affect your ability to get a job, secure insurance and enter into important service contracts. * Fannie Mae, the government-controlled mortgage giant, announced on June 23 policy changes that will make you ineligible for a new Fannie-Mae-backed
mortgage if you walk away from a current mortgage that you actually could afford to pay. The ineligibility will last for seven years from the date of foreclosure. * Finally, in some cases, the debt that foreclosure “erases” may be recorded as income, which means you will have to pay taxes on it. “Strategic default may seem like ‘walking away’ from a bad debt, but it’s really anything but,” Sweet says. “While you will no longer have to pay the actual debt, you’ll almost certainly ‘pay’ in other ways, in the form of lowered credit scores and a drastically curtailed ability to secure future credit for the next seven years. Higher interest rates and unfavorable terms could end up costing you more in the long run than continuing to pay on an upside-down mortgage.” To learn more about credit management, credit reports, credit scores and the factors that affect them, visit www.Experian.com.