Home Kits Test for Mold

It's mold season again — for some homeowners, a time of fretting over whether fungus may be secretly growing behind the wallpaper or other places. Companies that sell do-it-yourself mold tests say their simple and inexpensive sampling methods can find a mold problem.  Scientists say some tests are useful while others are a waste of money.

You have reason to suspect mold is in your house if there's been a flood or other moisture source; if there's a musty smell; or if you see something growing.  To grow, mold needs moisture, oxygen and an organic surface.  Common areas include sheetrock walls, wallpaper, carpeting and wood.

To learn more about Home Kits that test for growing mold, how they work and what they promise to do, read the full article here:

Have you had any experience with home kits that test for mold?  If so, we'd love to hear your opinion and feedback.  Leave your comment below by clicking on the 'comment" link.

Speed of Subprime Bust Surprising Lenders

The subprime mortgage meltdown has been a shock to industry insiders, but now they say it's hitting harder and faster than expected - even to those who predicted the crisis in the first place.  Many would-be homebuyers are now finding they can no longer qualify for a mortgae due to stricter standards.

Speaking recently at a Mortgage Bankers Assoication Market Conference, David Lowman, a panelist and chief executive of JPMorgan Chase & Co.'s global mortgage business said, "Anything that smacks of no-income and no-documentation is history…Anything above 85 percent to 90 percent loan-to-value, anything non-owner occupied, anything ludicrous as to value - like someone stepping up from a $1,000 a month payment to a $6,000 a month - is history."

Investors who buy and sell bonds backed by the mortgage payments of ordinary homeowners have seen bad loans rise and have told lenders and brokers they will no longer buy whole classes of securitized mortgages, which can quickly pull the plug on a prospective home buyer.

All the fudging, the lax underwriting, the push for loans that went on during the housing boom were facilitated by the rapid rise of home prices. Outsized increases in home equity in many U.S. housing markets covered a multitude of sins and encouraged lenders to extend loans to poor risk borrowers.  That day has come and gone, but according to several analysts at the MBA, despite their surprise at the speed and depth of the subprime meltdown, many expect a quicker recovery than all the gloom and doom that is being broadcast everywhere.

The group cites a strong economy, low unemployment, and favorable demographic growth for their optimistic stance, that recovery will soon come.

Avoiding Foreclosure - What You Can Do

The rate of residential home foreclosure filings dropped dramatically in April, down 14.3% from the previous month, according to Foreclosures.com. Still, year-to-date the foreclosure-filings rate is higher than the same period a year earlier.

What to Do:  Depending on your lender, you may be able to restructure your mortgage if you're late in making monthly payments. The delinquent mortgage payments may be added to the mortgage balance, or the homeowner could be given additional time to make catch-up payments. If you can no longer afford your adjustable-loan rate, don't count on bankruptcy court to save your home.

Changes in the bankruptcy law in 2005 have made it harder for homeowners to qualify for a "fresh start" and prevent foreclosure. Instead, work with a qualified credit-counseling service to restructure your non-mortgage debt to free up cash-flow. Federal help may also soon be on the way: Mortgage-finance giants Fannie Mae and Freddie Mac are planning to introduce alternative financing to help homeowners with subprime loans avoid foreclosure.

Home-Equity Borrowing Stalls

A cooling housing market and higher interest rates have made homeowners more reluctant to tap the equity they may have built up in their residences. The amount borrowers owe on their home-equity lines of credit has slipped in the past six months, to $561 billion at the end of March, the first such decline since 1999.

During the housing boom, demand for home-equity lines of credit climbed sharply as property values rose, interest rates fell and lenders made it easy for borrowers to tap their equity for everything from home improvements to vacations.  Now, the slowdown in home-equity borrowing is leading to weaker sales in some markets for autos, building materials and electronics, says Mark Zandi, chief economist of Economy.com.

Delinquencies on home-equity lines of credit also have climbed, to 1.29% in the first quarter, according to a separate study by Equifax and Economy.com.  That's up from 0.8% a year earlier and the highest level since early 2002.  Partly as a result, lenders are tightening their standards. That in turn is making it tougher for some borrowers to get so-called piggyback mortgages, which combine a mortgage with a home-equity loan or line of credit and allow borrowers to finance more than 80% of a home's value without paying mortgage insurance.

If you don't already have a home-equity line of credit, expect the qualifications to get one to be a lot tougher today than it was this time last year.  Lenders are not looking to do 100% financing for people with less than stellar credit anymore.

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