San Joaquin Homes Community Blog

Getting back in the black
More than 2.6 million households are at least 60 days delinquent on their mortgage payments, according to the nonprofit coalition Hope Now. While those who are delinquent 60-120 days can make back payments to help them become current, those who are more than two months behind may need to employ other means to catch up.

Making sense of the story

• Beyond the obvious threat of foreclosure, falling behind on a mortgage can be costly:  Lenders charge late fees as well as legal and administrative costs, and the borrower’s credit score will suffer.  Experts say the sooner a delinquent borrower deals with the situation, the better the chances are of making a full economic recovery.
  
  
• Borrowers who are determined to stay in their home but cannot immediately make back payments need to start by contacting their lender or a credit counselor to discuss available options.  Among them are devising a repayment plan, modifying the loan, doing a short sale, and adding what is owed back into the mortgage balance.
  
  
• The first step borrowers should take is to assess their financial situation by looking at the amount of money brought in each month versus what is spent.  Many credit and housing counselors have worksheets on their websites to help with this.
  
  
• Next, borrowers should collect pay stubs, documentation on other income, two years’ worth of tax returns, two months of saving and checking account statements, and mortgage records.  If the borrower has experienced a hardship, such as a layoff, a divorce, or an illness, they should gather evidence of that, such as unemployment insurance receipts, medical bills, a copy of a doctor’s letter to their employer, or a divorce decree.
  
  
• Finally, borrowers should talk to their lender, servicer, or an adviser.   The federal Dept. of Housing and Urban Development certifies counseling agencies that provide free advice and assistance, and has a list of them on its website.  Counselors can offer alternatives and prepare a budget to see if the homeowner can afford to stay in the house.
  
  
• Before agreeing to a repayment schedule, it is important homeowners understand how their lender treats partial payments.  Some credit partial payments toward the balance immediately, while others hold the money in a “suspend account” until the full amount is received.  Some will return the check to the borrower, and some will stop accepting payments after the mortgage is seriously delinquent.

Respondents were asked “What issue area will have the greatest impact on your vote in 2012?” National security, healthcare, and energy/environment trailed housing and unemployment by wide margins:

• Jobs/unemployment – 54 percent
• Housing – 27 percent
• National security – 8 percent
• Healthcare – 4 percent
• Energy/Environment – 2 percent
• Other – 4 percent

• Installing home solar panels can cut your electric bill and shrink your carbon footprint. But the upfront costs of buying and installing a system can be considerable, even with government rebates.  the cost and return from adding solar panels, and whether the home's roof is positioned to benefit from them, are some key factors to examine before making the move.
  
  
• Those who have a section of roof that faces south with few obstructions, such as tall buildings or trees will benefit the most from installing solar panels.
  
  
• Once the estimate for how big of a system is needed, an online calculator can be used at to help determine costs and how long it will take to make back the investment. The calculator takes into consideration equipment costs, loan interest rates, tax savings and more.  One example of a calculator is http://www.consumerenergycenter.org/renewables/estimator.
  
  
• Government programs can provide significant financial breaks on the system, but these offers frequently change. The http://www.dsireusa.org site has information on what's currently available in the area.  Homeowners also should check with their local utility company.
  
  
• An average home solar-panel installation can cost $20,000 or more, even after incentives, according to the Department of Energy. An alternative is to have a leasing company, such as SolarCity, install the system at no cost to the homeowner, and bill for the system monthly.  In many cases, the electricity cost will be lower, but the system won’t be owned.
  
  
• Rebates and other incentives are generally available only if the homeowner uses a licensed contractor or does the job themselves. When hiring a contractor, ensure his or her state license is valid by doing an "instant license check" at http://www.cslb.ca.gov.

Norbert G. Huston

The share of first-time buyers declined to 37 percent in 2011 compared with 50 percent in the 2010 study.  The study shows the median age of first-time buyers was 31, and the median income was $62,400, up from $59,900 in the 2010 study. The typical first-time buyer purchased a 1,570 square foot home costing $155,000; the estimated median monthly mortgage principal and interest payment was $794.

The typical repeat buyer was 53 years old and earned $96,600, notably higher than the $87,000 median reported in the 2010 profile. Repeat buyers purchased a median 2,100 square foot home costing $219,500, with an estimated median payment of $1,006.