Divorce and Your Real Estate

For most couples the family home is the highest valued asset they will have to divide in their divorce. Its division is usually fraught with controversy for varying reasons. It may be difficult to value, is not readily converted to cash, costs a substantial amount of money to maintain and has implications of federal and state tax liability.

As if all those things were not enough, your family's emotional attachment to your real estate, in particular a family or vacation home can cause you to make an irrational or poor decision at the time of the divorce. Your family may be haunted by that decision for years after your divorce.

Some questions that you need to answer are:
· Should you sell the family home?
· Do you keep it until the children are grown?
· Should you keep the home and buyout your soon to be ex-spouse, or vice versa?
· Can either of you afford to keep it after the divorce?

The answers to these questions and others can help you avoid or plan for problems associated with your real estate. Historically, the family home is the asset that most often causes controversy both before and after a divorce.

The principal reason for this problem is the timing of the sale of the home and the division of the net proceeds. Both events frequently occur some time after the divorce. In addition, couples seldom plan as they should for the payment of household maintenance and upkeep during the divorce. At first glance the family home appears to be the easiest asset to identify and describe. For purposes of a divorce, the description of your ownership interest in your home and other real estate can be very complicated with pitfalls for the unwary. As with the division of personal property, the rules and laws regarding the division of real estate vary from state to state.

There are several key factors about your real estate that affect the handling of the asset or the distribution of the net proceeds from the sale of the asset in a divorce.

The factors are:
· identification of the type of real estate and the type of ownership interest you have
· the ownership history of your real estate
· real estate, income and capital gain taxes
· Value and debts, such as loans and tax liens, that are secured by the real estate
· A plan to pay for and maintain the real estate during the divorce and afterward

Most importantly be sure to seek the guidance from trained professionals. Be sure to choose not just an attorney but a CPA, Financial Planner and Real Estate Professional to assist you in analyzing your options to come up with a new plan for our future.

Joan Rogliano is an expert in guiding her clients through the real estate transaction process. For more information email joan@roglianorealestategroup.com or visit her websites at www.roglianorealestategroup.com.

Go on an excursion right here in Denver!

Looking for something different to do this summer? Why not try a tour with Culinary Connectors.

Culinary Connectors provides you with exclusive and rare back door access to top restaurants, gourmet shops and ethnic markets in Denver.

These tours, often led by renowned Chefs, give you a chance to see what goes on behind the scenes in the kitchens of some of the most popular restaurants in the Denver area. Other tours include visiting ethnic markets and restaurants and there is even a farm tour which takes you just outside of the city.

Culinary Connectors was started with a love and passion for great food, wine and learning about the culinary world. Their mission is to connect foodies to the vast culinary world available to us. The goal is to introduce food lovers to gourmet shops, ingredients, chefs, cooking schools, restaurants and the newest trends in the culinary world.

For more information about their tours please visit: www.culinaryconnectors.com

It's not to late to plant your vegtable garden!

You're aware of the health benefits of eating fresh vegetables, you have the space for a small garden, but just don't know where to start? Look no further. Here's all you need to know to put fresh, crisp vegetables on your dinner table.

First, think small. Don't bite off more than you can chew, or hoe. If you're new to gardening, start off with a garden no larger than 8' X 10.' You can always expand later if you can't get enough of those fresh, crispy vegetables.

Choose a location that receives as much sun as possible throughout the day. Till up the soil sod and all.

Next, examine the soil. If you're soil is predominantly sandy or clay soil it will be worth bringing in some topsoil to get you off on the right foot. You can amend the soil with compost. Compost includes any biodegradable material which can be broken down into a fine, dark humus. Well rotted livestock manure is the best choice for getting a clay or sandy soil into shape. Whatever you use for compost apply it often, like once in the spring and once in the fall. It will take a few seasons to improve a poor soil type.

Now you are ready to plant! Here's the fun part. You can purchase seeds from the store or order them through the many catalogs on the market. You can also buy some of your vegtables as small plants.

Easy to grow crops include onions, peas, beets, rutabaga and zucchini squash. These can also be planted early. Tomatoes and peppers can be purchased as young plants to maximize the harvest. Be sure to space things in your small garden according to the instructions on the packets and containers.

Watch for insect infestation. If you do see evidence of chewing on plants, identify the insect causing the damage and choose an insecticide that will control that specific insect or Soap-Shield. Proper spacing, weeding and fertilizing is a good way to prevent disease and insect infestation without having to resort to harmful insecticides.

Use a granular or water soluble fertilizer to feed your hungry plants. Apply granular fertilizers a few days before you plant, working it into the top six inches of topsoil.

Soon, it will be time to harvest your garden fare. To get the full health benefits of your veggies, harvest when ripe and don't overcook your vegetables. More importantly, enjoy the experience of eating fresh, crisp vegetables you grew yourself!

Happy gardening!

Growing Numbers of Baby Bommers Head to Age-Restricted Communities

A large and growing number of Baby Boomers – more than 1.2 million households – are choosing to move to communities designed to meet their needs, according to a recent report released by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute (MMI).


The data is significant because by 2010 the Boomers will represent one-quarter of the U.S. population – a group that will greatly impact the choices available in the housing market.


The multi-phased report, Housing for the 55+ Market: Trends and Insights on Boomers and Beyond, examines a number of trends and behaviors of the important Boomer segment and the population in general. The report includes an in-depth profile of the 55+ market, based on figures from the U.S. Census Bureau's American Housing Survey from 2001 through 2007.


The report showed that the new homes offered to 55+ buyers and renters grew in size from an average of about 1,800 square feet to about 2,300 during that time period – likely downsizing for many, since almost no one reported a desire for a larger home as a reason to move. Those who moved from their existing homes did so primarily for family-related reasons, but the design and look of their new communities, and the quality, design and layout of their new residences, did those who chose to move most often consider the factors.

NAHB has tracked the 55+ population and its share of the housing market for decades, but this new data gives us our first look at specific consumer behaviors and preferences – what they look for in a home, the reasons why they move, the characteristics of the communities they choose – over an extended period of time.


By examining emerging trends, we have a clearer picture of what the mature market wants in homes and communities, which gives builders the tools to build housing that will meet those needs.

The report showed that while most 55+ consumers prefer to stay in their current homes as they age, an increasing number (3 percent, compared to 2.2 percent in 2001) will opt for age-restricted communities designed to attract "active adults" with a heavy emphasis on lifestyle.


The analysis also confirmed that while most consumers were generally happy with their current homes, residents of age-restricted active-adult communities had the highest satisfaction rates.
The report noted that those who were residents of multi-family dwellings often sought less expensive homes.


Of the Baby Boomers who are close to the traditional retirement age of 65, many are not yet planning to retire, are looking for a community close to their place of employment, or one that allows them to transition into a work-from-home situation. The number of people who chose a community close to work increased from 11.4 percent in 2001 to 16.6 percent in 2007. And while there is increasing interest in age-restricted housing among mature adults, the number of units being built has decreased with the downturn in the economy.


Not coincidentally, sales of new homes for active adults have fallen off as interested buyers either cannot sell their current homes, or simply decide to wait for a more stable market.



For additional information feel free to contact joan@roglianorealestategroup.com.

Want to invest in home values without actually buying houses?

Well, starting later this month, you'll be able to do precisely that by buying into New York Stock Exchange-traded funds tied to the movement of house prices - up or down - in major metropolitan real estate markets.

They're called "Macro shares," and their values will move based on home prices as measured by the Standard & Poor's/Case-Shiller index. If you think house prices in 10 key markets are likely to decline over the next several years, you can buy "down" Macro shares from your stock broker.

On the other hand, if you believe that values are likely to rise, you can buy "up" Macros.
The cost of a Macro share at any given time will depend on investor demand for either "up" or "down" indexed shares. So, if more investors believe house prices are likely to decline at any given time, the "down" Macro is likely to trade at a premium -- it'll cost more than the "up" Macro.

For example, you might buy a "down" Macro this month for $30 but two years from now, assuming the Case/Shiller house price index drops, it might be worth $40. Or, if the index rises, your "down" Macro might only be worth $25.

The ten metropolitan areas the index will track for the Macro funds are: Los Angeles, San Diego, San Francisco, New York, Miami, Las Vegas, Denver, Chicago, Boston and Washington DC. The money you pay to buy shares is invested in short-term Treasury securities or income-earning deposits. Interest income pays for administration of the funds and may even yield dividends for Macro holders.

Macro Markets LLC is the sponsor of the exchange-traded program. Macro was founded by Yale economics professor Robert Shiller and Carl Case, economics professor at Wellesley College. Both were also prime developers of the Case-Shiller home price index methodology that is widely cited to gauge home value movements.

What are some of the potential uses of this first-of-its-kind exchange-traded fund? Basically the idea is to allow investors - big and small - to play the real estate market without having to own, finance or manage real estate.

You can profit even if values plummet, as long as you own "down" Macro shares.
You can get a good feel for the Macro concept -- pros and cons -- by visiting the website at and walking through the prospectus and key information there.

Is this for everybody? Absolutely not. You can definitely lose money if you bet wrong.
Then again, you can reap profits from houses -- without owning any.

For more information regarding purchasing, selling or financing a home feel free to contact joan@roglianorealestategroup.com.

Buying A Condo Is Now More Difficult - But Still Possible

When the real estate bubble burst, so too, did the dreams of many speculators who were snatching up and flipping condos. Today, buying a condo can still be a great choice but getting financing for it could be a bit more challenging because some financial institutions are blacklisting some condo complexes due to high speculator ownership and dropping prices.

According to a recent Marketplace report by Dan Grech, government-backed Fannie Mae and other banks in states such as Michigan, California, Florida, and Nevada are refusing to lend to credit-worthy potential buyers who are interested in purchasing condos in certain complexes that may have either high speculator ownership or freefalling prices.

So is buying a condo still a good idea? It can be, but you have to understand that whether you are buying or trying to refinance your condo, lending restrictions have become stricter for these types of projects.

Today, condo owners are forced to share more than just common walls and common grounds; their financial situations are being jointly considered when it comes to loans. Now, mortgage lenders are looking at the entire makeup of the complex before determining if money will be loaned or a unit can be refinanced. The lenders are looking to see how many condos have gone into foreclosure, how many are owned by speculators, and if the residents are keeping up on their Homeowner Association dues.

All of this amounts to more challenges to buy condos—making what is often an entry-level purchase even more difficult for buyers. Some loans require larger down payments and have higher fees associated with them. Fannie Mae will guarantee mortgages for condos where 70 percent of the units in a condo complex are presold. That's up from the previous requirement of 51 percent. However, some exemptions to the requirement have been made.

The reason for stricter lending practices, especially with newly built condos, is because of the high level of condo foreclosures which then drives the prices of condos down, and weakens the condo association budget for the complex. Lenders say this makes writing loans for condos more risky.

Here's a look from Fannie Mae at its three new specific characteristics that make a condo project ineligible.

• New projects where the seller is offering sale/financing structures in excess of Fannie Mae's eligibility policies for individual mortgage loans. These excessive structures include, but shall not be limited to, builder/developer contributions, sales concessions, HOA or principal and interest payment abatements, and/or contributions not disclosed on the HUD-1 Settlement Statement.
• Projects where more than 20 percent of the total space is used for non-residential purposes.
• Projects where a single entity (the same individual, investor group, partnership, or corporation) owns more than 10 percent of the total units in the project.

Knowing the new restrictions doesn't have to keep you locked out of the condo market. Instead, having the knowledge should help you to narrow your search for homes to the areas where you are certain you can buy.

For more information on buying, selling or financing a home feel free to contact joan@roglianorealestategroup.com for more information about homes in your area.

Tax Credit Can Be Used for Down Payment - At the Closing Table!

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

"We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

For additional information feel free to contact joan@roglianorealestategroup.com.

Who's Eligible for a Loan Modification under Obama's Plan

Following are the eligibility requirements as specified in the Home Affordable Modification Program Guidelines:

• Mortgage must have originated on or before January 1, 2009.

• Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties.

• Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home).

• Home may not be vacant or condemned.

• Borrowers in bankruptcy are not automatically excluded from consideration.

• Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.

• First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

1. 1 Unit: $729,750
2. 2 Units: $934,200
3. 3 Units: $1,129,250
4. 4 Units: $1,403,400

• Foreclosure actions are suspended (not cancelled) during the trial period or while borrowers are considered for alternative foreclosure prevention options. If homeowners fail to qualify, foreclosure proceedings may resume.

• No minimum or maximum LTV ratio for eligibility purposes.

• Loans are eligible for only one loan modification under the program.

• Subordinate liens (such as second mortgages or home equity loans or lines of credit) are not included in the Front-End debt to income ratio, (DTI),calculation, but they are included in the Back-End DTI calculation. Back-End DTI is used to determine whether the borrower will be required to undergo credit counseling as a condition to modification.

• Servicers should follow any existing express contractual restrictions with respect to solicitation of borrowers for modifications. Applicants will be accepted into the program only until December 31, 2012 (the program expiration date), but incentive payments will continue up to five years after the date of entry into the Home Affordable Modification Program. Monitoring will continue through the life of the program.

Here are some points to consider when looking into loan modification:

• Eligibility requirements are simply government guidelines. Guidelines may change, and lenders make exceptions, if it is in their best interest to do so. In other words, homeowners should not count themselves out. If they are having trouble making their house payment, they should explore the loan modification option. Sometimes, the only way to determine whether you qualify is to apply.

• Not all servicers, lenders, or investors are required to participate in the program at this time. The program is designed for Fannie Mae and Freddie Mac mortgages, but the plan’s incentives may encourage servicers, lenders, and investors to modify other types of mortgages, as well.

• The individual servicers that agree to participate in the program are required to sign a contract agreeing to abide by the program guidelines. If the servicer does not contract under the program, they are not eligible for incentive payments.

• Homeowners should consult a specialist who works with lenders on a daily basis to review their situation and determine whether the homeowners are likely to qualify for whatever workout options are available through the lender. Sometimes the only way to determine whether a homeowner qualifies is to submit an application.

For additional information feel free to contact joan@roglianorealestategroup.com.

What is the i-house?

Architects at the country's largest manufactured home company embraced the basic rectangular form of what began as housing on wheels and gave it a postmodern turn with a distinctive v-shaped roofline, energy efficiency and luxury appointments.

Stylistically, the "i-house" might be more at home in the pages of a cutting-edge architectural magazine like Dwell — an inspirational source — than among the Cape Cods and ranchers in the suburbs.

The layout of the long main "core" house and a separate box-shaped guestroom-office "flex room" resemble the letter "i" and its dot. Yet "i-house" stands for more than its footprint. The 'I' stands for innovation, inspiration, intelligence and integration.

Clayton's "i-house" was conceived as a moderately priced "plug and play" dwelling for environmentally conscious homebuyers. It went on sale nationwide Saturday with its presentation at the annual shareholders' meeting of investor Warren Buffett's Berkshire-Hathaway Inc. in Omaha, Neb.

"This innovative 'green' home, featuring solar panels and numerous other energy-saving products, is truly a home of the future," Buffett wrote his shareholders. "Estimated costs for electricity and heating total only about $1 per day when the home is sited in an area like Omaha."

Clayton Homes plans to price the "i-house" at $100 to $130 a square foot, depending on amenities and add-ons, such as additional bedrooms. A stick-built house with similar features could range from $200 to $300 a square foot to start.

The key cost difference is from the savings Clayton achieves by building homes in volume in green standardized factories with very little waste. Clayton has four plants in Oregon, Tennessee, California and New Mexico geared up for "i-house" production.

A 1,000-square-foot prototype unveiled at a Clayton show in Knoxville a few months ago was priced at around $140,000. It came furnished, with a master bedroom, full bath, open kitchen and living room with Ikea cabinetry, two ground-level deck areas and a separate "flex room" with a second full bath and a second-story deck covered by a sail-like canopy.

The "i-house's" metal v-shaped roof — inspired by a gas-station awning — combines design with function. The roof provides a rain water catchment system for recycling supports flush-mounted solar panels and vaults interior ceilings at each end to 10 1/2 feet for an added feeling of openness.

The Energy Star-rated design features heavy insulation, six-inch thick exterior walls, cement board and corrugated metal siding, energy efficient appliances, a tankless water heater, dual-flush toilets and lots of "low-e" glazed windows.
The company said the prototype at roughly 52,000 pounds may be the heaviest home it's ever built.

The final product will come in different exterior colors and will allow buyers to design online, adding another bedroom to the core house, a second bedroom to the flex room or rearranging the footprint to resemble an "L" instead of an "I."

The company sees the "i-house" as a primary residence — three developers already have inquired about building mini-developments with them — that also could appeal to vacation home buyers.

It represents a new direction and an innovative application for what our industry can do.

For more information on buying, selling or financing a home feel free to contact joan@roglianorealestategroup.com for more information about homes in your area.

Celebrate Mother’s Day Brunch at the Hudson Gardens!

Sunday, May 10, 20098:30 AM – 2:30 PM

A special Mom deserves a special day – enjoy a delicious Garden champagne brunch and thirty acres of botanical beauty. Book early – this event sells out every year! Advance reservations are required.

About the Gardens

The Hudson Gardens & Event Center is the fulfillment of a dream that began in 1941 when Colonel King C. and Evelyn Leigh Hudson purchased five acres of land on the two-lane dirt road of Santa Fe Drive along the South Platte River. The story of King and Evelyn Hudson is of a Colorado business success, abiding love for the land and a commitment to beautification through horticulture.

Today, the Hudson Gardens is a private non-profit organization, as well as a Tier II Scientific and Cultural Facilities District (SCFD) organization.

The Gardens reflect the multitude of plants, flowers and trees and thrive in the dry Colorado climate, and include land that varies from high, dry prairie to wetlands near the river. Thirty acres of gardens are arranged in a continuous flow featuring ponds, wildlife, sculpture, a garden railroad, adventure hideaways and spectacular natural displays along a mile-and-a-quarter walking path.

Quite simply, the Gardens are an oasis of serenity in the midst of the City that allows visitors to simply enjoy their distinct beauty or learn how to beautify their own yards and businesses.
For more information call 303-797-8565 or visit www.hudsongardens.org.

Denver Foreclosures Decline, Home Sales Go Up!

Foreclosure Update: Five States account for 60% of the nation’s foreclosures in first quarter of 2009.

California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of the nation's foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in the five states combined.

Nevada continued to document the nation's highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing -- more than five times the national average.

But remember that true Real Estate numbers should not be calculated nationally. Real Estate is LOCAL!

Foreclosure activity in metro Denver declined at one of the fastest rates in the nation during the first quarter, according to a report last week from RealtyTrac. The rate for Denver came in at a low 0.70 percent.

Notices of default, foreclosure auctions and bank repossessions fell 45.8 percent in the first quarter of 2009 from the same period in 2008 in metro Denver.

Simultaneously, existing home sales have increased each month of the first quarter, showing a steady improvement as we enter the spring market.

There is no doubt that the 8,000 tax credit is having an impact on sales. It certainly makes sense, especially considering how low interest rates have remained. If there is any way possible to purchase a house now, it’s definitely the right time.

For more information on buying, selling or financing a home feel free to contact joan@roglianorealestategroup.com for more information about homes in your area.

Recession Impacts Alimony and Child Support Payments

As the recession continues to deepen and job cuts accelerate, a rapidly rising number of divorced spouses are requesting changes be made to child support and alimony arrangements.

In a recent survey of the American Academy of Matrimonial Lawyers (AAML), 39% of the nation's top divorce attorneys cite an increase in modifications being made to child support payments. Additionally, 42% of the members report a rise in the number of changes made to alimony payments.

When a divorced person loses a job or has take a pay cut, a request to make modifications to a child support or alimony payment arrangement often follows. With job losses becoming so widespread, there are subsequently a sizeable increase of these modifications taking place.

Overall, 39% of AAML members responded that they have seen an increase in child support payment modifications during the current economic downturn, while only 5% reported a decrease. Regarding alimony, 42% of the attorneys have cited a rise in modifications, while just 6% noted a decline.

Joan Rogliano is the Founder of The Wildflower Group, an organization that strives to empower women with practical information about finances and real estate, and to create a sense of community. For more information visit www.wildflowergroup.net.