The Bains

Texas has the 12th lowest home-care costs & other long-term care services in the country, according to Genworth’s 2010 Cost of Care Survey. The median annual rate for home care costs statewide is $41,070 or 6% lower than the national average of $43,472. Annual nursing home private rooms cost, on average, $58,765 in TX, compared to
$65,190 nationally. These rates represent an increase of 3% in TX over
the past 5 years & 5% nationally. Annual costs for assisted-living care
in one-bedroom, single-occupancy units in TX have increased 5% over the past 5 years, compared with 7% nationally. 78% of Texans prefer home care for long-term care, while 18% chose assisted living & 2% a
nursing home. This report from Genworth reported from the TX Real Estate Center at TX A&M.

The lenders gain NOTHING from a foreclosure & there are procedures in working all this out, but the homeowner has to do their homework, such as having paperwork in order, assemble every document
the lender required, the follow through promptly when asked for or to do something. A HUD-approved housing counselor can be helpful. Go to Parade.com top right put in HUD-APPROVED COUNSELOR & go to a page & enter state, then find our city. Only 1 phone number and Tyler & 1 in Longview. Contact that counselor to get the process started. DO NOT GIVE UP!

Funding issues could hit areas with decreased tax valuations. Of the 26 taxing entities in Smith County 2 made double-digit gains in valuations – Lindale & Overton. Arp & Troup ISDs face 14 & 16%
losses respectively & down 30% in past 5 years, due primarily from declines in mineral values, particularly natural gas. Fortunately both school districts padded reserves for such a day as this.
These were dramatic reductions, but reductions in residential & commercial values were expected. The last day of tax credits has passed & looming interest rate increases could discourage some folks.
Only time will tell!

This is due to Texas’ lower-than-national-average housing cost, according Dr. Ali Anari, a TX A&M Real Estate Center research economist. “When Texans are able to spend more on nonhousing goods &
services, the state’s economy is strengthened & more people attracted”. The fact that Texans pay
less of their income means they have more to spend on other things that add to the overall quality of
life. Texas offers a lower cost of living than many places in the U. S. Employers can attract workers at a reasonable wage to compete on the global market. In Houston & Dallas consumers spent
18.6% of their income on housing in 2008.

Payday lenders NOT subject to same kind of oversight as are all other consumer lenders. Texas did
tighten regulations in 2001, but they found a loophold, claiming they were no longer giving loans &
instead were just levying fees on loans made by third-party insitutions – thus qualifying them as “credit services organizations” (CSOs) & NOT subject to state regulations. In Texas 5,000 low-income people were taken advantage of & most by extending their loans & thus more into debt. The
average payday borrower in Texas pays $840 for a $300 loan. Borrowers have to read the fine print
carefully.

580 is the lowest possible score for a borrower to have to buy a home or approved condo. Gift funds
can use used for additional down payment &/or closing costs. 3.5% down payment must come from
the BORROWERS OWN FUNDS. Must have 12 month history of prompt rental payment with cancelled
checks or management VOR. If housing payment will increase, paying off a revolving debt to qualify
is NOT allowed. Owner occupied home only.

Purchase period is April 16-25 & starts April 5, 2010. Purchased by Texas residents either at stores
in Texas or through Texas contractors. Must be on slect Energy Star appliances. Forms are
available at www.TexasPowerfulSmart.org OR call 877-780-3039. Rebates limited to 2 per
household and include $240 on an Energy Star-rated frig; $180 on a freezer; $110-140 on a
dishwasher; $600, 800 or 1,000 on a central air conditioner; $1,200 – 1,600 on an air-source heat
pump; $1990 to 640 on a hot water heater or $45 on a room air conditioner. Shoppers can also
receive a $75 rebate to recycle an old appliance.

Exterior replacement projects such as doors & windows continue to recoup the most dollars at resale
& it helps curb appeal. Also least expensive to complete. Steel entry door replacements recoup
nearly 129% of their costs at resale, returning the most on investment. Other high-ranking cost-vs.-
value projects were siding replacements, attic bedrooms & deck additions. With the recession most
homeowners are tackling small projects themselves, rather than hiring contractors. Projects to least
recoup the cost are home-office remodels, sunrooms, upscale master suites, upscal garage additions
& upscale bathroom additions. All this according to REMODELING magazine. Data from 30 U. S. cities.

(1) decreasing homes prices, (2) higher volume of foreclosed homes available, (3) tougher mortgage
lending standards and (4) reluctant buyers are combining to make Texas homes more affordable than
ANYWHERE in the U.S. This according to Dr. Jim Gaines, economist with the Real Estate Center at
Texas A&M. According to the Texas Housing Affordability Index (THAI) homes have remained affordable everywhere in Texas since the beginning of the last housing cycle (from 2003-2009).
Tyler is right in there with a decided upswing in homes under $145,000.

The folks at FICO (who keep up with your credit scores) have revealed the actual penalities. If your
FICO score if 680, a 30-day delinquency drops it by 60 – 80 points; maxing out a credit card costs
10 – 30 points; a foreclosure costs 85 – 105; and declaring bankruptcy shrinks it by 130 – 150. If
these same missteps are made by the owner of a 780 FICO score with few signs of risky credit behavior in the past, the number of points lost could be about 50% higher in each case. It is suggested you check you FICO scores at the 3 credit recording sites. Go to www.thebains.com
and click on the 4th link down (about mid screen) to ask for the 3 reports. INTERESTING STUFF!