However, tenants rights during foreclosure have been strengthened by the “Protecting Tenants Rights at Foreclosure Act” signed into law by President Obama on May 9^th, 2009.   

The major provisions of this act are as follows: 

-During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause.

- If the lease ends in less than 90 days, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice.

- At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.

- The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease.

These provisions expire on December 31, 2012.

Bottom line, be sure you have a lease and know what’s in it.  Tenants have rights.  For a brochure outlining these rights in North Dakota click on this link:  http://www.ag.state.nd.us/Brochures/TenantRights-2003.pdf  or here http://www.dakprop.com/rights.htm . 

For Minnesota, click here to go to the Plain Persons Guide to Minnesota Landlord-Tenant Law http://www.tenant.net/Other_Areas/Minnesota/ppgmnllt.html

If you have further questions about foreclosure or how to avoid it, call me, Dan Whitman, at 701-238-2582.

This program empowers homeowners to become active in protecting their community through participation in Neighborhood Watch groups. Residents participate in Neighborhood Watch in their area by organizing residents to communicate any suspicious behavior to others by phone trees and reporting it to the authorities. 

Benefits of  Neighborhood Watch

• Your risk of being burglarized as well as other crimes such as auto theft, vandalism and personal assault are significantly reduced.
• By helping with this program you help to stretch the tax dollars by helping law enforcement agencies, who are limited in their available manpower.
• Not only does neighborhood crime go down, but many communities report a new feeling of caring and belonging amongst neighbors. Many have used their combined efforts to improve their streets, recreation opportunities and local services.

If you are interested in starting a neighborhood watch in your community, below are some steps to help you get started!

• Form a small planning committee of neighbors to discuss the needs of your community, gage the level of interest and potential problems, decide on a date and place for an initial Neighborhood Watch meeting
• Contact Your Local Sheriffs Office or Police Department for more information or to arrange a speaker
• Arrange a meeting location close to your neighborhood. It should have enough room to hold your invited neighbors and, if needed, for the use of audio visual aids such as an overhead projector.
•  For more information and educational materials related to starting a Neighborhood Watch, visit the National program's website.

This temporary waiver of their property flipping regulation will be in effect for the period of one year, unless extended or withdrawn by the FHA. 

To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

• All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
• If the sale price of the property is 20% or more above what the seller paid for the house, the waiver will only apply as follows:

A. The increase in value is justified by documented improvements, repair and/or rehabilitation work on the subject property or, if no work was performed, a second appraisal is obtained with a detailed justification for the increase in value, and

B.   A property inspection is obtained which addresses the overall condition of the property, both interior and exterior including structure, foundation, roof, plumbing, insulation, etc.  The property inspector must not have any interest in the property or have any relationship with the seller of the property.  The inspector may not receive any compensation for referring or recommending contractors for any repair work deemed necessary by the inspection.

Many homeowners who plan to

If your kitchen needs a better look, but you can't afford a complete kitchen remodel, consider these below kitchen fixes to help sell your home faster and for more money:

1. Paint or re-stain worn wood cabinets and install cabinet hardware. Stay with simple and neutral hardware, avoid large clunky designs.

2. Remove outdated or busy wallpaper and any bold, bright paint. Stick with neutral colors.

4. De-clutter all counter tops, keep them free and clear of appliances, butcher blocks and knickknacks.

5. Update the faucets. New faucets can make a outdated sink look revitalized. Faucet replacements are also fairly inexpensive and simple plumbing projects with all of the parts available at your local hardware store.

6. Remove photos, calendars and personal effects from the refrigerator door.

7. Updated and simple rugs and towels with a splash of color can bring warmth to a kitchen.

Replacing outdated appliances and flooring are great improvements that should be considered but may not always be part of your budget. Keeping a kitchen clean and maximizing space is key to getting buyers interested. Simple fixes just as keeping garbage cans, and pet bowls etc. out of sight can make a kitchen seem more appealing to potential buyers.

First, the Federal Reserve Board mortgage backed securities (MBS) purchase program will expire.  This program has kept home interest rates artificially low for over a year.  The purchase program will be concluded by the end of March.

There is a wide range of expectations in the investment community about the impact of the end of the MBS purchase program on mortgage rates. The Fed has been purchasing roughly 75% of new MBS issuance, and a decline in demand from one source normally leads to higher yields to attract other buyers. One argument, however, is that the end of the program has been expected for quite a while, so mortgage rates already reflect the news, and there could be little reaction over coming months. Other analysts predict an increase in mortgage rates of as much as one percent. The Fed itself expects a small increase in mortgage rates as a result of the end of the program.

Second, the office of Housing and Urban Development will be implementing a couple changes this spring that will have significant effect on closing costs for those buyers acquiring a Federal Housing Administration (FHA) backed mortgage.

On April 5 the cost of required up-front mortgage insurance for FHA loans will increase from 1.75% to 2.25%.  For a borrower purchasing a $155,000 home with a 3.5% down payment, the up-front mortgage insurance will increase $747.  This amount will not make a huge impact on the monthly payment, however it is still an increase in cost to the borrower both at closing and monthly.

Furthermore, later this spring, the amount of money a seller can contribute from their proceeds to the buyer in the form of points or closing costs is going to be reduced from 6% to 3%.  This can increase the amount of cash a buyer will be required to pay out of their own pocket at closing.

The best way to avoid these increases in costs is to have your FHA mortgage applications submitted to your lender by the end of March.  If you have any questions, please feel free to call me at 701-238-2582.

Interest-Only Loans

This type of loan is one of the most riskiest types of loans out there. This type of mortgage is of course very attractive because the homeowner is presented with a very low monthly payment.  What many homeowners don't think about is that since you will only be paying the interest on the mortgage, the principal payment does not go down. While it is nice to have a lower payment, you will be blindsided at the end of the mortgage term.  At the end of the loan term, you will be required to pay for the entire loan amount.  So if you don't anticipate on having the entire purchase price available, you could loose your home.  Another aspect that many homeowners don't realize, is that with this type of a loan you will not accrue any home equity.  Building equity is one of the main reasons to buy a house in the first place. 

 Adjustable Rate Mortgages

With this type of  mortgage, your monthly payment is not a set amount. Because your interest rate is tied to a certain index such as the prime rate that is currently in the industry it will fluctuate with the market.  Most people who choose this type of loan do so because initially you will have a lower payment. For a certain period of time, you will have a fixed rate on the mortgage. For example, you might have five years of a fixed rate, followed by an adjustable rate period. So for five years, you reap the benefits and then you are at the risk of the market. Many people who opted for this type of a mortgage a few years ago fell into big trouble when the economy took a turn. Many homeowners with this type of a loan found that their mortgage payments almost doubled and many have fell into foreclosure. 

40-50 Year Mortgages

With these long term mortgages, homeowners are drawn to them so they can purchase a larger home but there are many disadvantages. First of all, will you outlive this mortgage? These ultra-long-term mortgages don't reduce monthly payments all that much when compared with a traditional 30-year fixed-rate loan. They do however, increase the amount of interest you pay over time and dramatically slow down the rate at which you build equity.

If you are in the market for a new appliance this year, you can take advantage of a new appliance rebate program that is aimed to help homeowners.

The Energy Star Appliance Rebate program,is part of the American Recovery and Reinvestment Act. How it works is that it will give rebates to consumers who replace certain home appliances with energy-efficient models. The new program underscores the Obama Administration’s commitment to make American homes more energy efficient, while helping to support the nation’s economic recovery

Under this program, the U.S. Government has set aside $300 million and each state will have the authority to handle most of the details separately.  It provides rebates for qualifying energy-efficient appliances.select ENERGY STAR qualified appliances. These appliances may include:

• central air conditioners
• heat pumps (air source and geothermal)
• boilers
• furnaces (oil and gas)
• room air conditioners
• clothes washers
• dishwashers
• refrigerators/freezers
• water heaters

The U.S. Government has given each State the authority to develop their own government appliance rebate program using the government’s guidelines. Individual states can decide the amounts of the appliance rebates up to $200 (reported) per selected appliance that is Energy Star qualified. Each state develops it’s own rebate program and may choose which appliances to include as long as it is on the list of approved Energy Star appliances that the U.S. Government listed. States will receive formula-based funding in order to start or continue an already established ENERGY STAR appliance rebate program

If you will be

A real estate appraisal is conducted by a certified, state-licensed professional who determines the value of a piece of property. The appraiser should be an objective third party, someone who has no financial or other connection to any person involved in the transaction. The cost of a professional appraisals can range in cost from two hundred to five hundred dollars. You will receive a complete analysis of the estimated value of your home. Factors such as condition, proximity to services, and overall neighborhood values all will all be taken into account. The buyer will typically pay their fees when applying for the loan.

Keep in mind a home appraisal is not the same thing as a home inspection. If you're buying a home, you'll want to hire an experienced home inspector to point out any potential problems that could turn into costly nightmares in the future. Property appraisers will likely make note of any obvious issues, but they won't test and check to ensure everything is in order, that should be left to the inspector.

Nothing is better after being in the cold than coming home to a warm fire. With the brutally cold temps this winter, many 

• Have your chimney or wood stove inspected and cleaned annually by a certified chimney specialist.
• When choosing firewood it is best to select "Well-seasoned firewood" that has been thoroughly dried for a minimum of six months and stored properly. 
• Clear the area around the hearth of debris, decorations and flammable materials.
• Make sure your fire alarms have fresh batteries and are in working order by testing them monthly!
• Install a type ABC fire extinguisher near the fireplace.
• Install a screen to completely cover the fireplace opening to keep sparks from flying out.
• Keep combustible materials such as carpets, furniture, paper, logs and kindling at least 3-feet away from the fireplace.
• Never leave a fire in the fireplace unattended. Extinguish the fire before going to bed or leaving the house.
• Do not use gasoline or other flammable liquids to kindle or rekindle a fire.
• Flammable vapors can explode! Any flammable liquids, including those from craft projects can vaporize and travel the length of a room!
• Keep the damper open while the logs or gas is burning to provide for efficient burning and to prevent accumulation of poisonous or explosive gases.
• Do not treat artificial logs the same way you treat real wood logs. Use only one at a time. If you use more, they can produce too much heat fro some fireplaces to withstand.

Fireplaces are a wonderful addition to a home and provide not only warmth but add charm to a home. Be safe and follow these safety tips and enjoy! 

The new year has arrived as well as tax time. When filing your taxes for last year, don't forget that as a

Capital Gains with No Income Taxes - Thanks to the 1997 Tax Act, once every two years, single homeowners can realize a tax-exempt profit of up to $250,000 - as long as the seller owned and occupied the home as a principal residence during any two of the last five years. Married homeowners who file jointly on their tax returns do not have to pay taxes on up to $500,000 of gains when they sell their primary residence.

Federal Tax Credits for Consumer Energy Efficiency- If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit.  This credit equals 30 percent of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. In addition, the cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count.  Visit the IRS website for more information and specifics.

By spending as little as $5,000 before the end of the year on eligible energy-saving improvements, a homeowner can save as much as $1,500 on his or her 2009 federal income tax return. Due to limits based on tax liability, other credits claimed by a particular taxpayer and other factors, actual tax savings will vary. These tax savings are on top of any energy savings that may result.

First-time home buyer credit- A $8000 tax credit is available to eligible taxpayers must have bought, buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. and before July 1, 2009.  You are considered a first-time home buyer as long as you did not own a home during the three years leading up to the purchase of your new home.

Moving expenses- If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods.

Deducting Real Estate Taxes- Real estate taxes are deductible in the year paid. They are generally reported on Form 1098, Mortgage Interest Statement, the annual statement from the financial institution holding your mortgage, or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are not always included on Form 1098, but may be itemized on your real estate
closing statement.

Make sure you’re not missing out on important home-related tax deductions. Everyone has a different situation and you may actually qualify for other deductions you were not aware of, so always check with your tax advisor to find out which deductions apply to you.

If you have been

• Be sure to ask your lender as to what specific documentation you'll need to back up any claims you make on your application. Whenever possible have the original copies of the evidence in hand when you complete you application. 
• To avoid interest rates going up while you are waiting on approval be sure to secure a rate lock. Once you are approved for a mortgage, secure a written guarantee for an interest rate, points and other terms. 
• Have all the necessary information that your lender will need. Bank account numbers, the address of your bank branch and your latest bank statement, plus pay stubs, W-2 forms, or other proof of employment and salary, will help the lender quickly check your finances. Likewise have information about debts, including loan and credit card account numbers and the names and addresses of your creditors. Secure evidence of your mortgage or rental payments, such as cancelled checks.
• Be sure to remain available to the lender in case they need information. It is best to not go on vacation or be out of touch while your application is being processed.
• It is also a good idea to call the lender and real estate agent from time to time to check on the status of your application, and offer to help, contact others such as employers who may need to provide documents and other information for your loan. Keep a log of notes about your contacts with t he lender and others so that you will have a record of your conversations.
• Don't be afraid to call and check the status of the loan progress. Mortgage lenders process thousands of loan applications so checking on your loan to make sure it is receiving attention is a good idea.

It is hard to believe but 2009 is coming to an end and soon a new year will be upon us. The Fargo area offers some fun New Year's events to kick off 2010! Plan your evening now and have a safe and fun New Year's Eve!

New Year's Eve 2010 at Urban Plains
Thursday, December 31, 2009
8:00 PM - 2:00 AM
Location: Urban Plains Center, 5220 30th Avenue South, Fargo.   Click here to buy tickets.

New Years Eve Bash with Hairball at the Venue
Ring in the new year with style! This year The Venue is offering an all-inclusive deal you & your wallet cannot resist! Drinks, appetizers, champagne and the one and only 80’s rock tribute band, HAIRBALL!! These tickets are limited and going fast – Style and savings this NYE at The Venue. Show starts at 9:30 and costs $59 a person, $99 a couple.Tickets can be purchased by phone 1(800) 511-1552.

All Inclusive New Years 2010
Fargo Holiday Inn, 3803 13th Ave. South, Fargo. Enjoy all all inclusive evening for one low price. Dinner, drinks, party favors and professional photos are all included. Call 701-282-2700 for more information.

New Year's Musical Review 
Fargo Moorhead Community Theater (Children's Studio Theatre) Bring in the year with Broadway! The show starts at 7:30 and the theater is located at 333 4th St. S Fargo ND 58103.

Skky Bar Presents 2010!                                                                                   JT Cigarros Bar & Skky Bar Ultra Lounge located at 4554 7th Ave. South, Fargo, North Dakota 58103,  December 31st starting at 8pm enjoy free beverages, hors d'oeuvres, champagne, gift bag and entertainment by The Arthurs. Formal attire, $100 per couple, $60 per person. Call 701-277-0711n for more information.

1. Forget How Much You Paid For Your Property. While it may be difficult, it is important to realize that what you paid for your property has little to no effect over its present value. Your home's present value is formulated by different factors such as the value of comparable homes that have sold within the last 6 months in your local area as well as local area inventory, location and condition of your property. This can be a difficult to understand as you have little control over this.
2. Hire An Experienced Agent. Selling your home on your own, especially for the first time can be a very difficult process.  By using an experienced real estate agent that you feel comfortable with, your questions will be answered, and a good agent will help you set a fair and competitive selling price for your home that will increase your odds of a quick sale. Another benefit in working with an agent is that they will work with potential buyers so you don't have to. Agents will also have more experience negotiating home sales.
3. Prepare Your Home Properly. It is vital to prepare your home for sale and to show your home at it's best. A clean, uncluttered house is the first place to start, Also all repairs need to be addressed, from major to minor. It is not wise to try to hide any problems as they will be found when the potential buyer does the home inspection. Failing to do these things will not only reduce your sale price, but may also prevent you from getting a sale at all.
4. Don't Expect To Get Your Asking Price. It is important to remember that most all buyers will negotiate to get the best price. And if you want to sell your home you will have to work with them, especially in a soft market where competition is stiff. It is important to list your home at a price that will attract buyers but you will need to leave some breathing room for negotiations. A successful sale is one where the buyer feels like they aer getting a good deal and the seller feels that they received an amount that they needed as well. 

A good piece of advise is to prepare your self both mentally and financially for less-than-ideal scenarios. It is a good possibility that your home may not sell quickly and may sit on the market for far longer than you expect. Do your research and work with an experienced agent who can help you avoid costly mistakes and help you to achieve a seamless, lucrative sale every home seller hopes for!

Many people are going green these days to help do whatever possible to help preserve this fragile planet we live on. The good part is you don't have to buy an expensive hybrid car or spend alot of money on solar panels on your home to do your part. You can start right on your own home with small and simple changes that will make a difference. Below are few simple things that all homeowners can do to implement a home recycling plan.

Curbside or Drop-off Recycling
According to Earth 911, curbside recycling is offered to half the U.S. population which provides homeowners a convenient way to recycle a variety of different materials such as, plastic, paper, aluminum cans, glass bottles and steel/tin cans . For those areas where curbside recycling is not offered, recycling drop-off locations are an alternative in many areas.

Reuseable Shopping Bags                                                                                     Plastic shopping bags are not biodegradable and are threatening our marine life and clogging our landfills. A simple step in your home recycling plan would be to switch to reusable shopping bags. There are so many alternative shopping bag sources out there now with many large, and small, stores offering canvas reusable bags for less than a dollar each.

Composting
Composting is a easy way to limit the amount of garbage in your garbage cans and ultimately the amount of garbage you add to our landfills. An added benefit of composting is the nutrient-rich fertilizer you will create for your gardens using organic materials from your home. You can make your own compost bin at home for around $15 and can be made in about 10 minutes.

Make Smart Choices
You can also make a difference by making small, smart choices in your home. Little things like washing your clothes in cold water and turning off the lights when you leave a room can most certainly make a difference. Check out this list of 40 simple things you can do to make a difference.     

Paint: Anyone who has been in a freshly painted room knows that the vapors can start to get to you after a while. Pain has traditionally been a high odor substance that contains potential toxins. There are many 'green' paint options available today that are not only low odor but that have no cancer causing toxins (also called VOCs). Look for paints that have been certified by Green Seal.  Benjamin Moore also has a Natua line of paints that are just as rich and durable, just water based and much safer.

Cleaners: There are many cleaners that you should avoid such as bleach and ammonia, they contain irritants that can cause breathing difficulties. Many other cleaners that we use on a daily basis contain many powerful cleaning agents that contain toxins that can cause problems. The good news is that there are many alternatives on the market today that do just as a good of job cleaning but are much more safer to both the environment but to those that live in your home!

Furniture: Many people don't think of furniture as being toxic but if your furniture is old and worn it main contain flame retardants called PBDE's that can cause serious health problems. These chemicals can effect brain, nervous or reproduction problems. Be informed that stain repellents on furniture can also contains toxic chemicals such as formaldehyde. Do your research before putting any repellent on your furniture.

Bacteria, Molds and Other Viruses. Bacteria and molds can breed rapidly in stagnant water in humidifiers, ducts or in areas where water can accumulate such as on carpet, ceiling tiles and insulation. Studies have shown that increased exposure to indoor allergens like mold in one’s early years can produce persistent allergic reactions. You can help to reduce this risk by cleaning your humidifier and changing the water daily. Frequently clean evaporation trays in air conditioners, dehumidifiers and refrigerators. Also replace any water-damaged carpeting, building materials and other items from your home to prevent mold growth.

The $8000 first time home buyer tax credit that has been in existence since January 1 and was due to expire on November 30^th has been extended and expanded by the Senate and the House and is scheduled to be sent to the President to be signed into law, according to CNN.com.

Buyers who have owned their current homes at least consecutive five years would be eligible for tax credits up to $6500.  First time home buyers or anyone who hasn’t owned a home in the last three years will still get up to $8000.  To qualify, both groups will have to sign a purchase agreement by April 30, 2010 and close by June 30, 2010.  About 1.4 million first time home buyers had qualified for the credit through the end of August. 

The credit is available on homes costing $800,000 or less.  The credit would be phased out for individuals with annual incomes above $125,000 and joint filers with incomes above $225,000.

The credit will be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

If you’d like to know your homes approximate value, I can perform a CMA (Comparative Market Analysis) on your home at no cost.  If you need help in your home search or obtaining a mortgage, please feel free to give me a call at 701-238-2582.

This website, www.FMOpenHouses.com is already up and running and is very easy to use.  Open houses are divided by area such as North Fargo, South Fargo, Moorhead etc, or you can view all open houses.  The information can also be sorted in a variety of ways like price, number of bedrooms, and so on.

The consumer is able to contact the listing agent, request a showing, or share the information through email and the social network sites Facebook, MySpace and Twitter.

www.FMOpenHouses.com is just another example of the Fargo Moorhead Association of Realtors providing a service in the format demanded by todays technology conscious consumers for their home search.

In Fargo and West Fargo, the homeowner will receive an exemption on the homes’ value of up to $150,000 for two years.  This could add up to a total savings of $5200.

·         This exemption is available only on newly constructed single family homes, townhomes, and condominiums started after December 1, 2008.

·         Available to the first owner, after the builder, who resides in the home.

·         The tax exemption is for the two years following the year the home is sold.

·         The home owner is responsible for the tax for the partial year before the exemption goes into effect.

In Moorhead and Dilworth, the homeowner and builder receive a tax exemption up to $200,000 of the homes’ value, for two years starting the year of construction.  This could add up to a total savings of $5000.

·         This exemption is available only on newly constructed single family homes, townhomes, twin homes and condominiums built in 2009 and 2010 for the subsequent two years.

According to CNNMoney.com, mortgage rates have fallen 6 weeks in a row, greatly improving the possibility of securing a mortgage rate below 5%.  This is great news for home buyers!

If you are considering buying or selling a home, need help with a home search, need more information on the tax incentives or help finding a builder, please contact the Dan Whitman Team at 701-238-2582 or go to www.DanWhitman.com.

Property taxes for school districts will be decreased by 75 mills. This change will be reflected in the taxes due in February, 2010. What does this mean to you in dollars and cents?  See the chart below for tax savings in $25,000 increments of Market Value.

Or if you know the market value of your home and want to know the tax relief amount exactly, go to the Fargo Public Schools website:

http://dickens.fargo.k12.nd.us/directory/property_tax.php and use the tax calculator.