This survey provides a snapshot of consumer preferences and their perception about homeownership and affordability! 

Do they feel it is a part of the American dream?

Home owners have the positive view.

Home Ownership is possible and here in the

Las Vegas Valley we have loan programs available to assist

in the process if needed.  Call Today!

www.CallKim.net                 702-521-3939

Summer Maintenance Checklist

        June  2018

Summer is a time for relaxation and fun with family and friends. Taking care of some simple household maintenance chores early in the season can help get your home and lawn ready for summer activities and give you more time to spend enjoying them. Here’s a helpful summer maintenance checklist to use for your own home and to share with clients:

• Sidewalks, driveways, patios, siding and brick can all look worse for the wear after winter’s harshness. Take advantage of the warmer temperatures to power wash these areas and exterior surfaces. If you don’t want to purchase power washing equipment, check with your local hardware or home supply store about renting it. 

• Warmer weather is also a good time to paint or touch up the exterior of your home. A fresh coat of paint can add curb appeal as well as a layer of protection for wood surfaces.

• Give your air conditioner some TLC. Change the filters and clean the area around the units. Trim nearby trees and shrubbery to prevent limbs and leaves from falling into the equipment. Have a qualified air conditioning professional service your system to make sure it’s ready to go when temperatures rise.

• Increase your air conditioning system’s efficiency by checking windows and doors for air leaks. Repair seals or re-caulk any openings that you find.  

• Check your deck for wood that has split, cracked or is graying. If you see any of these signs, it may be time to reseal the deck.

• If your home has an automatic irrigation system, turn it on and check each zone to see if all the sprinkler heads are working and positioned correctly. To help conserve water and protect your lawn and landscaping, reposition any heads that spray water onto driveways, sidewalks, roads or patios.

• Inspect concrete areas, such as sidewalks, driveways, patios or pool decks, for cracks. Refill or repair any cracks as needed to help prevent further damage and to maintain smooth, safe surfaces for walking.

• If you have a swimming pool, check the chemical balance and system equipment to make sure everything is ready for summer use. It’s also a good time to do a safety check and inspect flotation devices, fences and other protective accessories to make sure they are functional.  

• Perform an electrical inspection of the inside of your home by going room to room and looking for any potential electrical hazards, such as overloaded outlets or electrical cords running under rugs and carpets. Trip your circuit breaker every six months to make sure it’s working properly, too.

• Replace the bulbs in exterior lights and clean the fixtures so that outdoor summer fun can continue after the sun goes down.

• It’s a good idea to clean your dryer’s vent and exhaust duct regularly. Clogged lint and dust in either of these areas could be a fire hazard.

• Have your lawn mower serviced and the blades sharpened. Check other lawn equipment, such as leaf blowers, water hoses and edging tools to make sure they are in good working order.

 

www.Callkim.net

702-521-3939

Pahrump USO Show! Great Cause, nice get-a-way!

USO Show. 

 

Come out and enjoy a variety show, where people from the community present their talents for your entertainment. All funds support the VFW Food Pantry.

For more information call 775-419-7857

·         Saturday Feb. 24^th at 6pm

·         Saddle West Event Center

·         Pre-sale tickets are $15 (may be purchased at Pahrump Party Store or VFW). Tickets at the door $20

Valentine’s Day Dinner. Enjoy an evening of dinner with that special someone. All funds support the VFW Projects. For more information, call 775-727-6072

·         Wednesday Feb 14^th from 5pm-7pm

·         At the VFW (4651 Homestead Rd.)

·         Menu:

o   Steak & Lobster, veggies, dessert $15

o   Steak & Shrimp, veggies, dessert $15

o   Steak, Lobster, & Shrimp, veggies, dessert $20

 

 

Call Kim for your real estate

questions and needs!

Elite Realty

702.521.3939

 



NECESSARY DOCUMENTS - ESTATE PLANNING

NECESSARY DOCUMENTS ESTATE PLANNING

An estate plan contains documents to disclose your wishes as you direct them to be carried out because of death or incapacity to make decisions for yourself. Spouses, minor children, adult children, property and investments can all be factors that should motivate a person to undergo the process. Will – this document specifies the way a person wants to manage and distribute his/her assets after their death. When a person dies without a will, the laws of the state where the person resided will determine the distribution of the property. Durable Power of Attorney – this document grants to a designated person the authority to act on behalf of the principal in in legal affairs should the principal become incapacitated. Among other things, this would allow the attorney-in-fact to buy and sell property on the behalf of the principal. Healthcare Proxy – this document grants that a designated person can legally make healthcare decisions on behalf of the principal when they are incapable of making and executing specific decisions stated in the proxy. Living Will – this document directs physicians with respect to life-prolonging medical treatments in case they become unable to communicate their decisions. Hippa Release – this document allows heath care providers to release your health care information to a designated person. Otherwise, they are required by federal law to protect the privacy of your health information. Letter of Instruction – This document contains information and instructions about a person’s wishes upon death. It is intended to offer details on whom to contact and where to find important documents about personal and financial matters. One should seek legal advice, since each state varies If you need a current estimate of value on real estate that may be involved, usually a price opinion from a licensed real estate professional will suffice. It would be my privilege to assist you with this at no cost or obligation. KIM DUCLOS crs abr gri

Fall Thermostat Check

Fall Thermostat Check

Old thermostats are fine as a simple on/off switch for your furnace but still a culprit for wasted energy and bigger heating bills. The good news is that replacing an older unit usually doesn't require professional help. You can purchase a replacement at your local hardware store and follow the enclosed instructions.

The Romans were the first society to invent the indoor heating system by running hot water underneath their marble floors. But the ability to control the temperature would have to wait until 1883 when Warren S. Johnson invented the first electric thermostat.

There were earlier attempts to create thermostats but none as precise as Johnson's, which was accurate to a single degree. And while your thermostat probably isn't that old, if you live in a home built before 1980, yours could still be costing you money.

Most modern thermostat troubles can be fixed simply by replacing the batteries. Turn off the heating system power and remove the cover according to your user manual. While you're in there, gently dust and remove corrosion from any visible parts.

You can also check to be sure the unit is level on the wall and located about five feet off the ground for the most accurate read. Consider relocating any thermostat placed where the temperature isn't consistent with rest of the house (this may require the help of a licensed HVAC contractor).

 

Kim Duclos

Wardley Real Estate

(702) 521-3939 

Stay Warm this Holiday Season 

25 Clever Ideas to Make Your Life Easier - CallKim.net

25 clever ideas to make life easier

.
Via: amy-newnostalgia.blogspot.com

Why didn’t I think of that?! We guarantee you’ll be uttering those words more than once at these ingenious little tips, tricks and ideas that solve everyday problems … some you never knew you had! (Above: hull strawberries easily using a straw)..

Via: apartmenttherapy.com

Rubbing a walnut over scratches in your furniture will disguise dings and scrapes.

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.

Via: unplggd.com

Remove crayon masterpieces from your TV or computer screen with WD40 (also works on walls).

.

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Via: athomewithrealfood.blogspot.com

Stop cut apples browning in your child’s lunch box by securing with a rubber band.

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Via: marthastewart.com

Overhaul your linen cupboard – store bedlinen sets inside one of their own pillowcases and there will be no more hunting through piles for a match.

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Via: realsimple.com

Pump up the volume by pl acing your iPhone / iPod in a bowl – the concave shape amplifies the music.

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Via: savvyhousekeeping.com

Re-use a wet-wipes container to store plastic bags.

Via: iheartnaptime.net

Add this item to your beach bag. Baby powder gets sand off your skin easily – who knew?!

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Via: realsimple.com

Attach a Velcro strip to the wall to store soft toys.

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Via: flickr.com

Look up! Use wire to make a space to store gift wrap rolls against the ceiling, rather than cluttering up the floor..

Via: instructables.com

Gotcha! Find tiny lost items like earrings by putting a stocking over the vacuum hose.

.

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Via: realsimple.com

Make an instant cupcake carrier by cutting crosses into a box lid..

Via: stephmodo.com

For those who can’t stand the scrunching and bunching: how to perfectly fold a fitted sheet.

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.

Via: sprwmn.blogspot.com

Forever losing your bathroom essentials? Use magnetic strips to store bobby pins (and tweezers and clippers) behind a vanity door

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Via: realsimple.com

A tip for holiday packing. Store shoes inside shower caps to stop dirty soles rubbing on your clothes. And you can find them in just about every hotel!

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Via: familyfun.go.com

A muffin pan becomes a craft caddy. Magnets hold the plastic cups down to make them tip-resistant.

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Via: unplggd.com

Bread tags make the perfect-sized cord labels.

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Via: kiboomu.com

Bake cupcakes directly in ice-cream cones – so much more fun and easier for kids to eat. Definitely doing this!

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Via: squawkfox.com

Microwave your own popcorn in a plain brown paper bag. Much healthier and cheaper than the packet stuff.

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Via: photobucket.com

Brilliant space-saver: install a tension rod to hang your spray bottles. Genius!

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Via: 9gag.com

Win friends at breakfast with this heart-shaped egg tutorial. Aww shucks!

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Via: wilton.com

Turn your muffin pan upside down, bake cookie-dough over the top and voila – you have cookie bowls for fruit or ice-cream. Click here for recipe.

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Via: realsimple.com

Freeze Aloe Vera in ice-cube trays for soothing sunburn relief..

Via: lifehacker.com.au

Gutter garden: Create a window-box veggie patch using guttering..

Via: re-nest.com

Use egg cartons to separate and store your Christmas decorations.

 

 Have a wonderful New Year!

And remember............Call Kim for all of your real estate needs!

www.CallKim.net

(702) 521-3939

Sahara Hotel Closed - Auction Taking Place on June 16, 2011

Sahara Hotel and Casino Closes!    Huge Auction - get your special memorabilia and get a piece of history.  I bet OJ Simpson would love to be shopping at this memorabilia event!  Ha Ha, enough with the funnies.  You will be able to buy signs, poker chips, hotel room furniture, casino furniture and there will be plenty of 

           history to take home. 

While you are in Las Vegas, perhaps you would like to contemplate purchasing a second home, a vacation condo or perhaps a profitable income property.  For those needs, please give me a call.   www.CallKim.net

Kim Duclos crs abr gri

(888) 949-2890

(702) 521-3939

Open House - Saturday June 4, 2011 - 10:00 a. - 1:00 p. CallKim.net

OPEN HOUSE - Saturday  June 4, 2011  
10:00 a. - 1:00 p.

Wine Basket Drawing too!

8313 Vista Colorado St

Las Vegas, NV  89123

Near Windmill and Eastern

 

Fabulous buy, competitive pricing = A+

Please click on link below to watch the virtual tour

http://virtualtours2go.point2homes.biz/Listing/VirtualTour.ashx?HideBranding=true&ListingID=37908074

We are holding a Wine Basket Drawing to those that attend our Open House!

Kim Duclos crs abr gri

Coldwell Banker Wardley

(702) 521-3939

(888) 949-2890

www.CallKim.net

QR CODE - Scan above

 OPEN HOUSE COURTESY OF KELLER WILLIAMS MARKET PLACE

WE APPRECIATE THEIR COOPERATION!

Clever Ideas Worth Knowing

Take your bananas apart when you get home from the store.If you leave them connected at the stem, they ripen faster..I didn't know that!

Store your opened chunks of cheese in aluminum foil.It will stay fresh much longer and not mold!

Peppers with 3 bumps on the bottom are sweeter and better for eating.Peppers with 4 bumps on the bottom are firmer and better for cooking.

Add a teaspoon of water when frying ground beef. It will help pull the grease away from the meat while cooking.

To really make scrambled eggs or omelets rich add a couple of Spoonfuls of sour cream, cream cheese, or heavy cream in and then beat them up.

For a cool brownie treat, make brownies as directed. Melt Andes mints in double broiler and pour over warm brownies. Let set for a wonderful minty frosting.

Add garlic immediately to a recipe if you want a light taste of garlic and at the end of the recipe if your want a stronger taste of garlic.

Leftover snickers bars from Halloween make a delicious dessert. Simply chop them up with the food chopper. Peel, core and slice a few apples. Place them in a baking dish and sprinkle the chopped candy bars over the apples. Bake at 350 for 15 minutes!!! Serve alone or with vanilla ice cream. Yummm!

Reheat Pizza

Heat up leftover pizza in a nonstick skillet on top of the stove, set heat to med-low and heat till warm. This keeps the crust crispy. No soggy micro pizza. I saw this on the cooking channel and it really works.

Easy Deviled Eggs

Put cooked egg yolks in a zip lock bag. Seal, mash till they are all broken up.Add remainder of ingredients, reseal, keep mashing it up mixing thoroughly, cut the tip of the baggy, squeeze mixture into egg.Just throw bag away when done easy clean up.

Expanding Frosting

When you buy a container of cake frosting from the store, whip it with your mixer for a few minutes. You can double it in size.You get to frost more cake/cupcakes with the same amount. You also eat less sugar and calories per serving.

Reheating refrigerated bread

To warm biscuits, pancakes, or muffins that were refrigerated, place them ina microwave with a cup of water. The increased moisture will keep the foodmoist and help it reheat faster.

Newspaper weeds away

Start putting in your plants, work the nutrients in your soil. Wet newspapers,put layers around the plants overlapping as you go cover with mulch and for-get about weeds. Weeds will get through some gardening plastic they will notget through wet newspapers.

Broken Glass

Use a wet cotton ball or Q-tip to pick up the small shards of glass you can't see easily.

No More Mosquitoes

Place a dryer sheet in your pocket. It will keep the mosquitoes away.

Squirrel Away!
To keep squirrels from eating your plants, sprinkle your plants with cayenne pepper. The cayenne pepper doesn't hurt the plant and the squirrels won't come near it. (Wonder if this works with rabbits? Sure gonna give it a try)


Flexible vacuum

To get something out of a heat register or under the fridge add an empty paper towel roll or empty gift wrap roll to your vacuum. It can be bent or flattened to get in narrow openings.
Reducing Static ClingPin a small safety pin to the seam of your slip and you will not have a clingy skirt or dress. Same thing works with slacks that cling when wearing panty hose. Place pin in seam of slacks and ... TA DA! ... Static is gone.

Measuring Cups

Before you pour sticky substances into a measuring cup, fill with hot water. Dump out the hot water, but don't dry cup. Next, add your ingredient, such as peanut butter, and watch how easily it comes right out.

Foggy Windshield?

Hate foggy windshields? Buy a chalkboard eraser and keep it in the glove box of your car When the windows fog, rub with the eraser! Works better than a cloth!

Reopening envelopes

If you seal an envelope and then realize you forgot to include something inside,

just place your sealed envelope in the freezer for an hour or two. Viola! It unseals easily.

Conditioner

Use your hair conditioner to shave your legs. It's cheaper than shaving cream and leaves your legs really smooth. It's also a great way to use up the conditioner you bought but didn't like when you tried it in your hair.

Goodbye Fruit Flies

To get rid of pesky fruit flies, take a small glass, fill it 1/2' with Apple Cider Vinegar and 2 drops of dish washing liquid; mix well. You will find those flies drawn to the cup and gone forever!

Get Rid of Ants

Put small piles of cornmeal where you see ants. They eat it, take it 'home,' can't digest it so it kills them. It may take a week or so, especially if it rains, but it works and you don't have the worry about pets or small children being harmed!

Visit http://www.callkim.net/ - 24/7 find a house with your mouse today!

Hire Smart When you Hire a Contractor!

With more people working on their current homes, opting to make upgrades, expand or keep up with their current home maintenance needs, contractors and their reliability comes into question.

What to do to hire a contractor.....

1. Verify Qualifications
Ask for references and work samples. Call the references, get a feel for the satisfaction of their past clients. Check the contractor's license and it is easy to do online nvcontractorsboard.com
or call (702) 486-1100

2. Always get 3 bids
Ensure each contractor is bidding on identical work.


3. Get Bids in Writing
Negotiate a clear, detailed contract. Examine plans for accuracy.

4. Monitor Progress
Make frequent walkthroughs and keep a job file. If you live onsight, just make sure that the work is according to the agreements that were made. Make sure any deviation of agreements is approved by you.

Always speak up, ask questions and verify, verify, verify.

Call me with your real estate questions at (702) 521-3939 or (888) 949-2890
Kim Duclos Coldwell Banker Wardley

Safety - Know your Meter Reader

Yes, even though we live in a high tech society, we still have water meter readers working in our neighborhoods. It is important to know who does and does not belong around your home. Having an unfamiliar vehicle near your home can cause concern.

The Las Vegas Valley Water District came up with some tips to identify their water district employee in your area.

1. Water Dist. employees will drive official vehicles with a clearly marked blue and yellow Water District Logo.

2. District Employees and contractors will always display in plain view a Water District photo identification badge with their name and title. District employees wear LVVWD logo shirts that areligth blue, bright orange, white or neon "safety" green.

3. No district employee will request entry to your home or request that you collect a water sample from inside your home for analysis. They may enter a backyard, if necessary, to access your meter.

4. No district employee will ever request or collect payment at your residence for water bills or for services rendered.

If you are ever concerned about anyone approaching or calling your home regarding your water service - please contact the water district. (702) 870-4194.

If you feel you are in stranger danger, always remember 911.

Kim Duclos

Coldwell Banker Wardley

(702) 521-3939

Las Vegas Selected for Pilot Program from Fannie Mae

Las Vegas Selected for Pilot Program from Fannie Mae

I was reading an article from our Board of Realtors (GLVAR Realtor Bytes) and it had some great information on Fannie Mae financing and it's relationship to Las Vegas, take a look......

A pilot program from Fannie Mae could help level the playing field between cash-laden investors and owner-occupants bidding on low-priced foreclosure homes in Las Vegas.Fannie Mae is extending the "First Look" grace period in Nevada from 15 days to 30 days effective Monday.
(this is great news...it allows owner occupants extra time to secure a home with out having to compete with the investors) That gives buyers who plan to make the home their primary residence first shot at purchasing a foreclosure within 30 days of its listing. At least

50 percent of foreclosure sales in Las Vegas are cash-only transactions. The bank will almost always take the cash offer because there are no contingencies, no appraisal required and no conditions such as the pending sale of another home. All-cash, owner-occupant purchases will require certification as an addition to the Fannie Mae purchase addendum. Properties that go to contract before the end of the 30-day period and subsequently fall through will be relisted with a new 15-day marketing period. Fannie Mae Chief Executive Officer Michael Williams said the 30-day period could later be replicated across the country if it succeeds in Nevada. He estimated the potential cost of carrying the properties on the books for a longer period of time at $60 million nationwide. "However, given the unique market conditions in Nevada, we found it to be cost-neutral to extend the grace period from 15 to 30 days across the state."

More information on the First Look initiative and Fannie Mae-owned properties can be found at: http://www.homepath.com/.

Please call me with your your real estate questions. Now is a great time to buy and sell.

http://www.callkim.net/

kim.duclos@coldwellbanker.com

(888) 949-2890

(702) 521-3939

Source: Realtor Bytes dated April 30,2010

Pending Homes Sales are up for 5th Straight Month

QUESTIONS ON TODAY'S MARKET ACTIVITY? Follow me!

August 5, 2009-

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6% to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7% above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.
Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. ”Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
The Pending Home Sales Index in the Northeast rose 0.4% to 81.2 in June and is 5.8% above a year ago. In the Midwest the index increased 0.8% to 89.9 and is 11.6% above June 2008. The index in the South jumped 7.1% to 100.7 in June and is 8.9% higher than a year ago. In the West the index rose 2.9% to 100.4 but is 0.2% below June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.
NAR’s Housing Affordability Index (HAI) remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7% of gross income to mortgage principal and interest, well below the standard allowance of 25%. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”
A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600.
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
For more information, visit http://www.realtor.org/.

RISMEDIA

JUDGES PARTICIPATE IN LOAN MEDIATION HEARINGS

BROUGHT TO YOU BY KIM DUCLOS OF COLDWELL BANKER WARDLEY

KVBC - LAS VEGAS

If you recently received a notice of default on your home, the Nevada Supreme Court and Nevada Legislature have now made it a law that your lender go to mediation.
To prepare dozens of district court judges to act as mediators, they are participating in mock sessions that will help them help you through the process.
News 3's explains how these mediations may help keep thousands of folks in their homes.
Story continues below ↓
Nearly two dozen judges showed up Friday at UNLV's Boyd School of Law in an effort to learn how to be better mediators.

"What were doing here today is expanding the skill set of our district court judges," says Jennifer Elliott, District Court Judge. "The judges need to learn and the judges know they need to learn. They are here desiring to learn an impartial set of skills."
The reason these judges are practicing now is because soon, they will be asked to mediate hundreds - if not thousands - of foreclosure cases.
Thanks to Assembly Bill 149, it is now Nevada law that all homeowners facing default after July 1 participate in mediation with their lender.
Attorney Ed Bernstein has clients facing foreclosure. He says mediation will end up helping thousands of families to stay in their homes.
And the best part is that it's simple to apply and affordable, only costing $200.
"This system is so simple," says Bernstein. "Our supreme court has done a great job. They've made it easy and the form - any layman can fill out the form. You don't need to be an attorney."
Chief Justice of the state Supreme Court, James Hardesty, hopes that these mediations will stop the rising number of foreclosures in the Silver State.
"My hope is that lenders and borrowers will get together and reach reasonable economic decisions about how best to handle the residence they've got."
The entire mediation process, beginning with when you apply and lasting until a decision is reached should take no more than 90 days. Anyone receiving a notice of default since July 1 will receive a mediation application in the mail.
For more information, visit the Nevada Judiciary web site.
The Saving You Money Team also wants to let you know about two foreclosure workshops to help you stay in your home.
The Hope Now Foreclosure Prevention Workshop is happening Friday until 8 pm and Saturday from 9 am to 2 pm at the Aliante Station Casino in the Scottsdale Ballroom. You'll be able to meet face-to-face with a housing counselor and discuss your best options.
Best of all, this workshop is free and open to the public.
Also, there is another educational event that will help lay out all of your options, explain what loan modification is, and help you recognize what to watch out for if you go to a loan modification company.
It's being held at the AAA Home Rescue Office on Sunset Road near Jones and the 215 Beltway. This workshop begins at 11 am on Saturday.

Loan Modification Plan: 7 THINGS YOU NEED TO KNOW

Brought to you by Kim Duclos of Coldwell Banker Wardley

The White House releases fresh details on its plan to save the housing market By Luke Mullins Posted March 4, 2009

At the heart of the President Barack Obama's ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that's a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren't. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama's loan modification program.

1. Payments, not prices: The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans)," Buffett wrote. "Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay."

2. Thirty-one percent: To that end, the administration's plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower's gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower's monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. "For underwater loans, if you don't write down the balance to be less than the value of the house, people still have an incentive to default," Green says. "Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me."

3. Cash incentives: To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.

4. Financial hardship: The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. In addition, the program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. "If we would have had such stringent verification over the last four or five years, we probably wouldn't be in as bad a position as we are in," says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. "It's going to be a very time-consuming process," he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration's plan is out, lenders are free to begin modifying loans.

5. Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan "clever," arguing that it would work to ensure broad participation. "When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify," Glaser says. "The federal subsidy for the payment on the modification…tips the scale toward modification as a better deal for the investor."

6. Second liens: The Obama plan also addresses the issue of second liens—such as home equity loans or home equity lines of credit—by offering incentives to extinguish them. But key details on this component of the plan remained unclear. "Distinguishing the second lien is really important," Green says. "[But] exactly how they are going to convince the second lien holder to do this is not clear to me at all."

7. Will it work? Moody argues that while the plan may reduce foreclosures for primary residences, it could lead to a spike in defaults for another group of homeowners. Although he supports the administration's efforts to focus the initiative on primary residences, Moody notes that "it could be the case that a lot of [real estate speculators] have been just hanging on waiting to see exactly what the details are of this [plan]," Moody says. Now that it's clear the Obama plan leaves speculators out, "we could actually see a spike in foreclosures or at least mortgage defaults among this group."
Glaser, meanwhile, worries that lenders may soon be overwhelmed by inquiries from homeowners looking to participate. "Starting today, millions of borrowers are going to start to call their lenders to see whether or not they are eligible," he said. "And I'm not sure that the financial services industry has the capacity to handle these inquiries."

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