On the Pennsylanvia Agreement of sale associations are identified as either a “Condominium” or a “Planned Community (Homeowner Association)”. Either way, there will be a set of rules laid out for varying issues such as maintenance, services, community conduct, limitations on activities or alterations and other topics. These rules are updated and promulgated by both a sitting elected board and/or a hired manager or management firm. As a buyer, you would do well to read them when they are supplied to you by the real estate agents involved in the transaction. Per the PA agreement of sale, you have 5 days to decide to void the sale in writing should you find issues in the association documents that you can’t agree to live with.

In practice, most buyers either don’t read the document or have no trouble with the rules. However, there’s always those who wanted to “do something” with the property that ends up being forbidden – it’s always best to get this stuff out on the table VERY early in the transaction and think it through. If you’re interested in buying a Lancaster PA townhome or condomimium unit, it’s important to stay on top of your buyer’s agent about getting the docs right away.

If you have questions about homeowner and condo associations in Lancaster County, feel free to reach out to me at jeff@yourlancasterhome.com. As always, I’d appreciate your subscription to my channel!

If you have any questions I’d love to hear them at jeff@yourlancsterhome.com. As always, channel subscriptions at YouTube are most appreciated.
(c) 2011 Jeff Geoghan Visit our homepage for Lancaster PA Real Estate

This week I again was dealing with a great-priced HUD home sale in Lancaster City ($57,000 for a 2,300 square foot home on West Walnut) that was generating a lot of buzz.  This prompted me to cut an episode talking about HUD homes in Lancaster County and how you might benefit some day from buying one.

The federal Dept. of Housing and Urban Development acquires properties through the foreclosure process of certain homeowners nationwide.  Once they have these properties, they need a vehicle to liquidate them back to the public.  This is accomplished by breaking the country down into regions and giving contracts to “asset management” companies to administer the sales in assigned regions.  For Pennsylvania and some neighboring states, there are 3 asset management companies.

Now that the asset management companies have properties to market, they hire listing brokers in different geographic areas such as cities and counties.  You can search HUD homes at http://www.HUDhomestore.com, by the way.  Once you find one you want to buy, you’ll need a registered SELLING broker to place an online bid for you.  HUD rules stipulate a 30 day “owner occupant priority” period where only buyers planning to actually live at the property may bid.  Investors (and there are many) are shut out of the process until day 31 for most sales.  HUD does accept FHA mortgage financing on qualifying homes, unlike most other foreclosure listings.

Once your online bid is accepted, the sale proceeds fairly normally to closing.  There is some extra paperwork involved, but the contract is much shorter than the standard contract and since the homes are sold “as-is” there’s no complications with inspections, etc.

Buying a HUD home has never been easier and if the property works for you, the savings may be substantial over a similar privately-offered property.  Email me if you’d like more info or have comments at jeff@yourlancasterhome.com.  Visit my Lancaster County foreclosure website at http://www.yourlancasterhome.com/lancastercountyinvestors.htm. Search Lancaster PA Homes for sale.

The basic idea is that the buyer and seller write up a contract that allows the buyer to rent the property for a specified period of time, after which the renter/buyer would qualify for a mortgage and close on the home.  During the rental period a portion of their rent payments may be allocated towards reducing the ultimate purchase price.

Positives for a potential home buyer are that they get the home they want now, and have the critical time needed to improve their credit and gather down money.  Positives for the seller are that they get their home “off the market” and can move on with their life.

Negatives – there are unfortunately a lot.  Just a couple I will mention:  The buyer is trusting that the seller won’t go into foreclosure or keep their upfront down money for some reason.  The seller is trusting that the buyer won’t trash the house (or any other rental nightmare scenario) during the rental period, then disappear before the purchase phase.  There can be a LOT of assumptions made in a lease purchase  (or “rent to own”) situation: the challenge is to get them all ironed out ahead of time!  I would almost recommend that a seller hire an attorney for review of the proposed contract, just to make sure as many possibilities are covered in the document.

If you are a potential Lancaster County Lease Purchase or “Rent to Own” customer, feel free to ask me a question at jeff@yourlancasterhome.com.  I’ll see what I can do to help you in your specific financial situation.  Thanks!

Got a call from a customer asking about Lancaster County Sheriff Sales – she and her husband want to buy an adjoining property that’s become blighted and is going to sale next month.  I explain how the process works and what the role is of the Lancaster County Sheriff Sale in the foreclosure process.  If you want more detailed info on Lancaster PA foreclosures check out my special foreclosure webpages at http://www.yourlancasterhome.com/lancastercountyinvestors.  Email me at jeff@yourlancasterhome.com if you have any questions.

Post by Mike Blank, MBC Building & Remodeling

The EPA rule requires lead-safe work practices in pre-1978 homes, including posting warning signs; using disposable plastic drop cloths; cleaning the work area with HEPA vacuuming and wet washing; and individual certification through a training course. The full rule and brochures for consumers can be downloaded from the EPA’s Web site.

A 2006 NAHB study on lead-safe work practices showed that a home was better off after a remodel than before, as long as the work was performed by trained remodelers who clean the work area with HEPA-equipped vacuums, wet washing and use disposable drop cloths.

Summary of the Rule

1. Training and Certification

As of April 2010, remodeling firms working in pre-1978 homes need to be certified. In addition to firm certification, the company must employ a Certified Renovator. When hiring a remodeler, home owners should verify the firm is certified and employs a Certified Renovator to be sure the work is completed properly.

2. Work Practices

The Certified Renovator has a number of responsibilities. The remodeler must distribute the Renovate Right brochure to the homeowner and ask them to sign the pre-renovation form several days before work begins. They must also post warning signs outside the work area and supervise setting up containment to prevent spreading dust. The rule lists specific containment procedures for both interior and exterior projects. It forbids certain work practices including open flame or torch burning, use of a heat gun that exceeds 1100°F, and high-speed sanding and grinding unless the tool is equipped with a HEPA exhaust control. Once the work is completed, the regulation specifies cleaning and waste disposal procedures. Clean up procedures must be supervised by a Certified Renovator.

3. Verification and Record Keeping

After clean up is complete the Certified Renovator must verify by matching a cleaning cloth with an EPA verification card. If the cloth appears dirtier or darker than the card, the cleaning must be repeated.

A complete file of records on the project must be kept by the certified renovator for three years. These records include, but aren’t limited to: verification of owner/occupant receipt of the Renovate Right pamphlet or attempt to inform, documentation of work practices, Certified Renovator certification, and proof of worker training.

Starting in July 2010, remodeling firms are also required to share with home owners a copy of the records created under the rule within 30 days of completing the renovation.

4. Exemptions

It is important to note that these work practices may be waived under these conditions:

• The home or child occupied facility was built after 1978.
• The repairs are minor, with interior work disturbing less than six sq. ft. or exteriors disturbing less than 20 sq. ft.
• If the house or components test lead free by a Certified Risk Assessor, Lead Inspector, or Certified Renovator.
• The homeowner may also opt out by signing a waiver if there are no children under age six frequently visiting the property, no one in the home is pregnant, or the property is not a child-occupied facility. The EPA is revoking the opt-out waiver as of July 2010. This means all remodeling work conducted in pre-1978 housing must comply with the regulation after this date.

Learn more about EPA’s lead paint rule by visiting www.epa.gov/lead/pubs/renovation.htm.

Mike Blank, CGR CAPS, President

MBC Building & Remodeling, LLC

cell: (717) 371-5136

We have all seen the car commercial where the guy is on the used car lot and says “Show me the CARFAX®” before he purchases a vehicle. A CARFAX® report provides potential buyers a vehicle’s history of ownership, titles and accidents. The report allows buyers to make an informed purchase decision and gives them confidence that they are buying what is advertised. Did you know the same type of report is available when you buy a house too?

The CARFAX® for a home is called a C.L.U.E.® or Comprehensive Loss Underwriting Exchange report. A C.L.U.E.® report shows insurance claims made on a property for the past 5 years and insurance companies use this information for underwriting homeowner insurance (See a C.L.U.E. example).

However, home buyers can also get a C.L.U.E.® report by requesting the seller to purchase a C.L.U.E. Home Seller’s Disclosure Report for $19.95. Remember that the buyer or real estate agent cannot order the C.L.U.E.® report and it only can be provided by the seller or owner. The report shows the same claim history on the property that insurance companies use but it removes all of the seller’s personal information that they would want to keep private.

If you wouldn’t buy a car without the CARFAX® report, should you buy a home without a C.L.U.E.® report? Let me know your thoughts.

Regarding a recent customer letter about Sheriff Sales, I thought I’d post my reply for the edification of the deal-hunters in training out there. These are my opinions & observations – give me a call for more detail if you’re interested!

1. Homes at the Sheriff Sale that have value will be sought after by professionals, of which there are about 4-5 at every sale. A good value consists of low outstanding loan balances, good location and acceptable condition. Those houses get bid up pretty high, and it’s absolutely critical to know your margin to a fine degree. The pros bring laptops with each auction detailed with estimated resale, top bid and other notes to help keep everything straight during the sale. You should try to attend the next one to see how things flow. One other thing – you’ll need to research and have at least 5 properties you want to invest in – because at least 2 of those will get pulled just before the sale date (due to a stay issued by the judge) and the pros will get at least 2 others from you…

2. Under a Sheriff or Tax Lien (public) sale all responsibility rests upon the purchaser to handle everything. If there’s a hidden lein or if someone needs evicted, or if there are huge water bills owed, the purchaser gets to deal with it. There’s no help from anyone in a public sale situation.

Bottom line - Public sales are very risky for first-time investors, and should only be undertaken with tremendous prior preparation and thorough funding. Only a very few of my customers ever go this direction in the end. Depending on your business goals, I’d recommend that you try to purchase either:

1) An open-market foreclosure (there are lots more out there these days – I can email you daily updates if you wish). These sales have had the title cleaned by the lender before being re-offered to the public. I sell a lot of these to investors, and the key is to be able to jump on a good one the same day. If the seller decides that there might be some more money to be milked out of a buyer, they’ll immediately announce what’s called a “highest and best” deadline for all interested parties. Again, you need to really know your numbers, be it resale or rental income vs. expenses.

2) HUD resales - every Friday watch www.hooksvanholm.com, which is the PA outlet for gov’t foreclosure sales. Not as much inventory, but the titles are clean and they make it easy. The competition can be fierce because everyone knows about this but once in a long while you can catch an opening and get a deal. The bidding is all done sealed online through an authorized broker (which I am one). Investors have to wait a week to bid but it gives you a few days to do your numbers before placing your bid – a rare convenience in this game.

Hope this helps – let me know what you’d like to go after! I can meet you for coffee some time if you’d like to go over your business plan in more detail.