Real Estate Information Archive


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More help for struggling home owners!

by Roberts Johnson and Rachel Diedrich, Real Estate B

President Obama announced new help for struggling homeowners today!  The new program will help those who are unemployed and those who owe more than their homes are worth. 

For those who are unemployed, the program will force lenders to cut their mortgage payments to 31% of the owner's income (usually unemployment benefits) for up to 6 months.

The program also offers incentives to banks who offer principal reductions to homeowners who owe more than their home is worth. 

People are hopeful that this program will not only help individual homeowners, but the economy as a whole.  Only time will tell!

For more information about this program, please contact Rachel Diedrich with Cool Denver or visit her website:

Another Reason to buy a home now!

by Roberts Johnson and Rachel Diedrich, Real Estate B

If the tax credits aren't enough reason to buy a home, changes coming soon to FHA loans may be! 

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly. Save money buy buying now!  Contact Cool Denver Homes for more info: or 303-963-5335

Never Fall In Love With The House You Buy Until Youve Bought It

by Roberts Johnson and Rachel Diedrich, Real Estate B

It is undeniably exciting to be touring properties for the first time – the acquisition of one’s first piece of real estate is definitely a milestone in one’s life. However, falling in love with a particular piece of property is extremely dangerous for your wallet and your future prospects. So, just don’t!

Falling in love with a home means financial mistakes. While you’re figuring out the best spot for your television set, you’re not noticing the faulty duct work or the poorly maintained roof. You’re not casting a jaundiced eye at the old oil tank in the back and mentally drawing up a list of demands for the seller to comply with if they want to sell their place. You will probably not notice the price is $20,000 higher than comparable properties, with no discernible reason.

The problem with buying a house is that you don’t get a second chance. Once you’ve signed the papers, you’re stuck with the mortgage until you sell. You can’t take it back and you can’t get a refund. You are stuck, so you had better play hardball while everyone’s still on the field.

Now, this doesn’t mean that you have to be negative about everything; just realistic. While enthusing about the counters, you might also mention that there seems to be a crack in the ceiling and wonder audibly what might cause it and what might have to be spent to fix it. Carefully examine the home for signs of mold and insect infestation (you will, of course, be hiring a home inspector to thoroughly investigate the home, should you be serious about buying).

Keep reminding yourself that there are plenty of homes out there just like this one – and some that are even better. Arm yourself with information about homes that have previously sold in the area that are similar to this one. Your Realtor ® can help you with this. If you decide to make an offer, make your offer based on how much the house is likely to go for; not how much you want it.

If you view buying this house as a financial investment, it’s easier to play hardball. You are not buying groceries or a new car; you are buying your future place of residence and your eventual profit depends on making a good deal *now*. You are investing in your financial future with your house; don’t drop

Falling in love with a house is all too easy; just about everyone does it, but it isn’t to their benefit in the end. To have a house for a fair price, you have to play hardball and refuse to pay more than the market is currently supporting.

Short Sales: Best Option for Most, But Not All

by Roberts Johnson and Rachel Diedrich, Real Estate B

Check out this informative article written by a local real estate attorney.  If you need help with a short sale, please contact Rachel and Roberts at 303-963-5335 or email

In 2009, the Wall Street Journal estimated that over 25 percent of American households with mortgages were worth less than the total debt secured by the property.

For most upside down homeowners, a successful short payoff transaction is a better option than simply allowing their home to go into foreclosure.Not all upside down homeowners are in financial trouble.

Yet for some significant portion of upside down homeowners, continuing with their existing mortgages in their existing home is no longer an option. Some no longer have the ability to service the debt. Others must move to find employment. Few of these owners have the ability to bring funds to closing to make up the difference between the mortgage debt and the property’s fair market value.

Upside down homeowners who need to change the status quo essentially have four options: (1) loan modification, (2) deed-in-lieu of foreclosure, (3) short payoff, (4) allowing the home to go into foreclosure.

As of March 2010, the success rate of loan modifications has been low. Deed-in-lieu of foreclosure transactions tend not to be practical for at least two reasons. A substantial percentage of upside down homeowners have second mortgages. A deed to a first lender in lieu of foreclosing that mortgage does not extinguish the second lien. Secondly, lenders generally prefer receiving the proceeds of a short sale versus obtaining an REO property through a deed-in-lieu. Generally, if a borrower would qualify for deed-in-lieu, he would more easily qualify for a short sale. This leaves us to compare short sales versus foreclosures.

Short sales reduce a lender’s losses, therefore reducing the seller’s/borrower’s potential losses and tax consequences. The credit rating damage from a short payoff is less than the damage from a foreclosure. For many borrowers, there is tremendous psychological satisfaction in having avoided losing their home through a foreclosure. A short sale is perceived as a more honorable way to give up a home.

For what type of person does a foreclosure tend to be better than an attempt at a short sale?

Owners who won’t qualify for short sale. Some upside down homeowners have the ability to make their mortgage payments in spite of daunting negative equity. Yet, for a variety of reasons, they choose to “Strategically Default” on their mortgages. As part of qualifying a property owner for a short sale, the lender is looking for financial hardship. As part of the process of applying for a short sale, the borrower will provide updated financial information to the mortgage servicer and lender. If the short sale request is denied, the lender will have better information with which to garnish wages, garnish bank accounts and otherwise collect against the debtor who might later strategically default on the mortgage. Homeowners who are unlikely to qualify for short sales should not try as a failed attempt may enhance the likelihood that the lenders come after the borrower for the lender’s post-foreclosure losses.

Property owners who will be made homeless by the closing on a short sale. Many insolvent homeowners seeking short sales have already moved out of their home. For them, the closing on a short sale has few disadvantages. For others, however, the closing of the short sale causes the homeowner to pay rent elsewhere. Not all of them have the ability to pay rent. For homeowners who have been made indigent by our “Great Recession,” it is sometimes better to simply let their home go into foreclosure so that they might live in it longer.

Other factors complicate the analysis such as the lender(s) track records for bidding deficiencies at foreclosure auctions and suing for losses, whether the property’s value fully covers the first mortgage, and whether the owner is an occupant or an investor. Because brokers have a commission at stake, brokers should avoid making the choice for the seller. If the seller has any torment about whether to pursue a foreclosure or pursue one of the other options, the owner should talk to his own attorney.

This article was written by Jonathan Goodman with Frascona, Joiner and Goodman, P.C.; For more information about his article contact him at (303) 494-3000 or Their website is

Learn more about the Taxpayer Advocate Service

by Roberts Johnson and Rachel Diedrich, Real Estate B

On Thursday, March 18, 2010, the IRS wants to hear from citizens in the Denver area. You are invited to attend the Taxpayer Advocacy Panel (TAP) Community Town Hall Meeting.


National Taxpayer Advocate, Nina Olson and local TAP members will attend and participate in the session. TAP members will use feedback to drive change in IRS customer service practices.


Attendees will also be able meet their Local Taxpayer Advocate, learn more about the Taxpayer Advocate Service (TAS) and the resources available for further assistance with specific tax problems.


TAP is a group of volunteers dedicated to helping the IRS identify ways to improve customer service and satisfaction. TAP was established by the Department of Treasury to provide citizen input on improving IRS responsiveness to taxpayer needs. The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.



For additional information or questions contact: .



What:    TAP Community Town Hall Meeting

When:   Thursday, March 18, 6:00 p.m. – 8:00 p.m.

Where:  Exempla Saint Joseph Hospital

              Russell Pavilion Conference Center

              Rainier Auditorium

              1900 Lafayette Street

              Denver, Colorado 80218-1191

              Free Valet Parking on Lafayette Street

Get Involved! Denver Police Citizens Academy

by Roberts Johnson and Rachel Diedrich, Real Estate B


The next Denver Police Citizens' Academy will be held March 4, 2010 through

May 20, 2010.


All classes are on Thursday and begin at 6:30 p.m. at the Denver Police

Department Academy, 2155 N. Akron Way, Denver, Colorado


All attendees must register in advance. For information please contact Linda

Kent at 720-913-6877 or

Five Points Jazz Festival Denver 2010

by Roberts Johnson and Rachel Diedrich, Real Estate B

Five Points Jazz Festival

Saturday, May 22

1:00 pm – 8:00 pm

Welton Street in Historic Five Points


Interested in being involved? Check out the following opportunities:

Sponsors - Please check out our amazing sponsorship opportunities and associated benefits HERE.


Volunteers - We need many volunteers to help make the festival run smoothly. Sign up HERE.


Performers - Do you have a band that would you like to play the 5 Points Jazz Festival? If so, please send a one sheet and music sample to Gina Rubano at


If you have other questions or comments, please contact Gina Rubano at or 720-865-4325

Displaying blog entries 1-7 of 7

Contact Information

Photo of Roberts (Bobby) Johnson Real Estate
Roberts (Bobby) Johnson
Cool Denver Homes, Inc.
2314 Curtis Street
Denver CO 80205
Roberts Cell: (303) 525-7599
Fax: (303)9635335

Providing Real Estate Solutions Every Day!