Investors who time any market hope to buy at the nadir and sell at the zenith, but homebuyers have a trickier time knowing when to sit on the sidelines and when to jump in. The reason? There are several.

Buying a home is one of the largest financial investments a homebuyer will make. Transaction costs are expensive enough that homeowners remain in their homes approximately six years before trading up or down. As the recent buyer’s market shows, homes aren’t liquid, and may not find buyers at the price and in the time frame that sellers prefer.

On the other hand, homeownership provides significant benefits including property rights, tax benefits and other government subsidies including support for a mortgage lending market, quality of life, appreciation, and equity.

Since two factors move markets — fear and greed — it’s easy for buyers to be overanxious to buy in a seller’s market and reluctant in a buyer’s market. In a seller’s market, prices rise, sellers hold firm, inventories are short and days on market are short. In a buyer’s market, buyers are fearful that home prices will either flatten or drop below what they paid, causing inventories to rise, days on market to increase, prices to drop, and sellers to sweeten deals.

If buyers pay attention to housing news, they can be discouraged: interest rates are near year-ago highs, builder confidence is down, and some predict that housing will drop in value for the first time since 1968.

So is it the time to buy?

Here are a few factors for you to consider:

According to a recent article, “When The Housing Rebound Comes,” by George Mannes for Money Magazine, the time for buyers to jump in is when conditions improve. Mannes suggests that buyers look for four signposts: declining inventory (preferably under 6.5 months of inventory on hand); houses selling faster; Realtors opinions of local market conditions growing more favorable; and signs that sellers are less desperate, such as fewer incentives and homes selling closer to asking price.

For some buyers, the lesson that it’s time to buy is a hard one. They may wait so long that the home they hoped would go down in price sells to someone else. They have to start their search over finding that the remaining homes don’t compare to the “one that got away.” They may wait for interest rates to drop, and find that they stubbornly stay at higher rates. They’re knocked out of the neighborhood and price range they wanted to buy into and find themselves looking at homes with fewer features, less square footage, or more distance from work, family and friends.

When those scenarios happen, buyers learn that there’s an opportunity cost for waiting.

If you’re a buyer, you sadly realize that to get the home you want — at both the price and interest rate you want — will be nearly impossible. If you’re lucky, you’ll get two out of three. So, if you’re waiting to see what other buyers are going to do, you’ll soon find that once buyers move collectively, they will either drive prices down or drive them up. If prices are down, but likely to recover, do you really want to compete with other buyers on the way back up?

In other words, the price of feeling more comfortable about buying is inevitably paying higher prices and having less to choose from.

So here are some surefire ways to tell that it’s really time to buy:

• You found the home you really want.
• It’s affordable.
• You can get a reasonable loan.
• It will serve you and your family for years to come.
• You’re not looking for perfection. No home is perfect.
• You’ve given up trying to beat the market.
• You’re comfortable with your compromises, whether it’s location, size, price, features, or condition.
• You’re confident the home you chose is desirable enough that you will be able to sell it in any market

There are inappropriate steps sellers can take when it comes time to put their house on the market.

For instance, the seller in Virginia, who thought the half bath the builder had located at the front of the house would really be better situated toward the back of the main level (though all the other similar models had the powder room in the same place for the previous 20 years). He got hung up on this detail so much, that he just had to move it — and did — for thousands of dollars, just so he could get it on the market the “right way.” His hang-up may have settled some deep-seated emotional need for him, but it didn’t draw any more buyers, and it drained his bottom line. You might say, that was a costly mistake.

Real estate broker and author Sid Davis has identified in his book, “A Survival Guide to Selling a Home,” seven costly mistakes that many sellers make when it comes time to put their home on the market. In my business, I’ve seen each one of these mistakes played out and it just makes me shake my head as to why sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional.

Mistake 1: Putting the home on the market before it’s ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything — so get the work done before marketing the property.

Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it’s an anomaly, instead of a nice addition to the community.

Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the “asking” price, but they don’t control the “sales” price. The market does. It doesn’t matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.

Mistake 4: Hiring an agent based on non-business factors. It might be nice to hand over your largest asset to your nephew who just got his license — but make sure you understand the consequences if your deal starts going south.

Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it’s no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn’t matter what you “want,” only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can’t get emotional about how they may or may not appreciate the nuances of your home of seven years.

Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form — use it wisely. Just because you disclaim doesn’t mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that’s discovered 30 days after settlement.

Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later — it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Avoiding these mistakes is not that difficult. Your REALTOR® is there to help you step over the pitfalls

In practical terms, this means that if you’re a buyer there are steps you should take to protect your interests. As a place to start, here are several basic issues to consider:

• Get a home inspection. Don’t let the stiff competition in seller’s markets persuade you to forego a home inspection on a home you want to buy.

By misusing a home inspection as a negotiating tool, the house you succeed in buying may cost you a fortune in the long run as you rush to correct problems a qualified home inspector would have easily been able to point out.

It is not the inspector’s job to tell you whether or not you should buy the house. That is your decision alone. The inspector’s job is to provide you with thorough and accurate information to help you make the decision.

What about new homes? You certainly want a home inspection as part of the final walk-through — make sure you allow several hours for this process. But, even better, use a three-step process for new homes: Inspect once the foundation is in place, inspect when the walls are up but not closed, and inspect before closing.

• Get an appraisal. An appraisal satisfactory to the lender is required when a home is financed by a traditional mortgage source. Consumers pay for this appraisal, but lenders get to choose the appraiser.

Independent appraisers assure lenders that a home is not over-priced and thus that they are not making an inflated and risky loan. If you’re buying with seller financing (where there is no outside lender) or all-cash, you still need to make your offer dependent on an appraisal satisfactory to you. Speak with your real estate agent for details.

• Get a termite inspection. Wood-boring insects cannot demolish a home with cartoon-like speed, but they can cause damage. Before or at closing, lenders will want evidence showing that the property is free and clear of active termite infestations.

It’s sometimes asked why a termite inspection is needed for new homes. It may seem like an odd requirement at first, but the concern is that lumber may be infested before it’s cobbled together to create the home.

• Get a title examination. A home purchase is a huge investment, so it makes sense to make sure that the seller actually owns the property and has a right to sell it. A title inspection looks at the property’s history as it is shown on public records to establish a trail of ownership.

• Get title insurance. About that title examination — it’s based on a check of public records, but those records may be wrong or incomplete. It could be that a former owner was insane, an alcoholic, drug-addicted, a bigamist, or not legally competent — factors which may all make it difficult to offer good and marketable title when it’s time for you to sell, thus reducing your ability to make a sale — or a profit.

Title insurance is a one-time charge that protects against title claims. For details, ask your broker and the party that conducts closing. Ask about “re-issue” rates (you may be entitled to a discount under certain conditions), endorsements, limitations, and exceptions. If you’re in Iowa, be aware that title insurance is generally not used there — ask how you are protected in the event of title problems.

• Get a survey. A survey shows the quantity of property being sold and it’s location. A survey will show whether “your” plot improperly includes someone else’s land — think of a garage or fence that extends six inches over a property line and the ability of a neighbor to charge for the use of that land or to order the removal of your improvements. A survey can also show “encroachments,” the improper use of your land by someone else.

• Get a limited “warranty.” There are warranties for new homes, and service contracts for existing properties. What individual policies include varies by state and by program, so you need to ask your agent for details — what is covered, what is not covered, how long coverage lasts, what costs you face if you have a claim, whether you can continue an existing home policy after the initial term, etc.

Do these various inspections and checks cost money. You bet. Are they worth it? Sure.

Nicolo Paganini was a well-known and gifted nineteenth century violinist. He was also well known as a great showman with a quick sense of humor. His most memorable concert was in Italy with a full orchestra. He was performing before a packed house and his technique was incredible, his tone was fantastic, and his audience dearly loved him. Toward the end of his concert, Paganini was astounding his audience with an unbelievable composition when suddenly one string on his violin snapped and hung limply from his instrument. Paganini frowned briefly, shook his head, and continued to play, improvising beautifully.

Then to everyone’s surprise, a second string broke. And shortly thereafter, a third. Almost like a slapstick comedy, Paganini stood there with three strings dangling from his Stradivarius. But instead of leaving the stage, Paganini stood his ground and calmly completed the difficult number on the one remaining string.

 To view more inspirational thoughts click here

In Freddie Mac’s results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 6.67 percent with an average 0.4 point for the week ending June 28, 2007, down from the previous week when it averaged 6.69 percent. Last year at this time, the 30-year FRM averaged 6.78 percent.

The 15-year FRM averaged 6.34 percent with an average 0.4 point, down from the previous week when it averaged 6.37 percent. A year ago, the 15-year FRM averaged 6.43 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent, with an average 0.5 point, down from the previous week when it averaged 6.31 percent. A year ago, the 5-year ARM averaged 6.39 percent.

One-year Treasury-indexed ARMs averaged 5.65 percent with an average 0.5 point, down from the previous week when it averaged 5.66 percent. At this time last year, the 1-year ARM averaged 5.82 percent.

“Mortgage rates edged down slightly for the second week in a row after having risen over the previous month and a half, and as financial markets prepared for the June 28th Federal Open Market Committee’s announcement on monetary policy,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Inexpensive Ways to Revitalize a Kitchen

Here are some quick, affordable ways to give your kitchen an update:

• Replace the flooring. Install laminate floor over old linoleum, vinyl, or chipped tile. It costs just $1 to $5 a square foot and looks like wood, stone, or tile.
• Replace the lighting. A new ceiling fixture costs less than $100 and will brighten up the place. Adding some under-the-cabinet lights will illuminate work surfaces.
• Give the cabinets a new life. A coat of paint and new knobs is the cheapest way to go. If you’re able to spend $4,000 to $6,000 on the project, hire a refacing company to replace the doors and drawer-fronts.
• Refinish the appliances. For a few hundred dollars, an appliance refinisher will re-enamel your stove, refrigerator, and dishwasher door in the color of your choice, including a stainless steel look-alike.
• Update the backsplash. Replace the space between your cabinets and the countertop with fashionable stone or tile.

Using IRA Money for Real Estate

Self-directed IRAs give investors lots more options than do traditional company-sponsored retirement plans, including the option of investing in real estate.

The rules and regulations for investing an IRA in real estate are complex, and failure to pay attention will result in substantial taxes and penalties, experts say.

Accountant Ed Slott, founder of the IRAhelp.com Web site, offers these suggestions:

• Set up a separate IRA for real estate investments. Even if only a small portion of the IRA is used for real estate, the IRS could penalize the entire balance in a prohibited transaction.
• Check the investment scenario with custodians and other professionals who have experience in these transactions and can spot red flags.
• If possible, choose to invest in a Roth IRA. The money in the Roth has already been taxed and any distributions, including capital gains on the property, are generally tax-free.

Passing the All-Crucial Sniff Test in Selling the Home

In addition to depersonalizing and de-cluttering, experts say home sellers need to be concerned about odors.

Sales associates polled informally by REALTOR® Magazine Online a few years ago said the lingering presence of pets, tobacco, mildew, and decay in the air are major deal-breakers.

Given that not everyone smells the same odors and that people can become accustomed to a particular smell over time, it is important for home sellers to have their sales associates or another objective party inform them about unpleasant scents in their homes.

If buyers can’t imagine clearing the smell, they can’t imagine occupying that space. The smell of cat urine is especially difficult to remove, with Chris Coffin of the Alexandria, Va.-based branch of the cleaning company ServiceMaster estimating that spot-cleaning carpets and replacing the carpet pad would cost home buyers upwards of $400; removing and replacing saturated floors would cost much more.

Coffin adds that it often takes three cleanings to remove nicotine odors from walls, and some cases involve the replacement of insulation.

Experts urge home buyers to be wary of air fresheners, candles, and other scents when touring homes, as they could be used to conceal offensive odors. A better solution for sellers, they say, is to clean drapes, sheets, and pet bedding as well as to air out the house.

Question: We have been reading that a lot of homeowners are in financial trouble, and their homes are going into foreclosure. We would like to buy a home at a foreclosure sale, and need guidance as to how to go about this process.

Answer: Some people might call you mercenaries, trying to take advantage of other people’s troubles. But the reality of the situation is that in many cases, the real mercenaries were the lenders who made loans to consumers who either could not afford them or did not understand the terms and conditions of the loans, or both.

Buying a home at a foreclosure sale is fraught with risks. You can end up spending a lot of money doing your homework, only to learn that at the last minute the foreclosure sale was cancelled, or that the borrower filed bankruptcy minutes before the sale takes place. And even if the sale proceeds, you may not be the successful bidder. You have to know at the outset that there are a lot of professional buyers who know the players and the process, and they often are the ones to get these properties.

The very first thing you must do is to hire an attorney who is not only knowledgeable about real estate, but who also has experience with foreclosures in the jurisdiction where the property is located. There are different State laws and requirements throughout the United States, so you cannot rely on books and other publications which try to explain the foreclosure process.

Your attorney will explain the procedure to you and will immediately order a title search on the property. Presumably the lender who instituted the foreclosure has also obtained a title search, because lenders are required to provide notice of a foreclosure sale to all persons (or entities) that have an interest in the property.

But generally, that title report will not be shared with you. You want to know everything about the title to the property, including such matters as:

* who owns the property? In whose name is the title?

* how many mortgages exist on the land records?

* are there any lawsuits against the homeowner?

* are there any filed mechanics liens on record?

Why is all this important? Let’s say that the house has a market value of $300,000, and there is a first trust (mortgage) in the amount of $175,000, and a second trust in the amount of $100,000. It is important to know which lender has instituted the foreclosure.

If it was the first trust holder, then by law the second trust will be wiped out. That does not mean that the homeowner will no longer owe money to the second trust holder. If that trust holder wants to pursue the homeowner, it will have to file a suit in court; it cannot foreclose on the property.

Keep in mind that when you borrow money to buy or refinance a home, you sign two legal documents: (1) a promissory note, whereby the borrower agrees to pay the lender pursuant to the terms of that document, and (2) a deed of trust (also known as the mortgage) which is the document which allows the lender to foreclose on the property. The deed of trust is recorded among the land records in the jurisdiction where the property is located.

On the other hand, if the second trust holder starts to foreclose, it must formally notify the first trust lender, who then has an opportunity to protect itself. In some cases, that first trust lender can negotiate to buy the second trust — usually at a discount because the second lender is happy to get its money quickly — and then the first trust holder can start its own foreclosure.

This sounds complicated, and it is — especially for novices in real estate.

While your attorney is obtaining a title search, you should make arrangements to inspect the property. Why is the owner letting it go to foreclosure? Is the house in such bad condition that the owner is unable to sell it? Most homeowners do not want their home to be foreclosed upon, because it will significantly impact their credit standing for many years. No lender wants to make a new loan to a borrower who has a foreclosure on his/her credit report.

Accordingly, many homeowners faced with the threat of foreclosure will try to sell the house — even at a discount — rather than have to face foreclosure. You should try to talk with the homeowner, and see if you can negotiate a deal whereby you can buy the house directly and thus everyone will avoid foreclosure.

This means that you will need to know the true value of the property, and will also have to obtain a preliminary loan approval letter from a mortgage lender in advance of any discussions you have with the homeowner. You also need to know the exact amount of money that the lender will require in order to stop the process. Often, this is difficult to obtain, because some lender’s attorneys are reluctant to provide you with the complete payout amount, which includes the outstanding loan balance, late fees, attorneys fees and foreclosure costs.

If you can convince the homeowner to sign a contract to sell you the house, that contract should be contingent on your ability to go to closing before the house is foreclosed upon. You should not give the homeowner any money; your earnest money deposit will be held by your attorney in an escrow account.

You or your attorney should immediately contact the lender (or its attorney) to advise them of the sales contract. You should get written confirmation that the foreclosure will be postponed in order to give you time to go to settlement on the property.

It should be noted that once the foreclosure process has begun, you will have very little time in which to do all of your homework. Most legitimate lenders will not ever start to foreclose until they have exhausted negotiations with the homebuyer on options short of foreclosure.

The lender will place a notice of foreclosure in a local newspaper. You and your attorney should read the advertisement very carefully. When and where will the foreclosure take place? Often the process can take less than 10-15 minutes, and if you are late, you will lose out.

Are there any conditions or restrictions placed in the ad? Will the successful bidder take subject to any outstanding liens or obligations?

Now, it is foreclosure day. You should go to the auctioneer’s office (in some jurisdictions it takes place on the steps of the local courthouse), and listen carefully to the bidding instructions. Sometimes, new terms and conditions will be presented at the time of the auction, and these terms may not be satisfactory to you.

You are the successful bidder, and have to post with the auctioneer a good faith deposit, which will be forfeited if you do not close promptly — usually within 30 days from the date of the auction sale.

Congratulations are not yet in order. Did you take into consideration that fact that the current owners are still in the property and you will probably have to take them to the appropriate Landlord-tenant court and seek to evict them? This can be an expensive, time-consuming project, which must be accounted for in your planning budget.

Buying property at a foreclosure sale is not for everyone. It can be expensive, time- consuming and disappointing. Always ask yourself this question: if this is such a good deal, why is it only coming my way

Wouldn’t it be ironic if the people least impacted by changing real estate trends were the oldest folks in the neighborhood?

“The 55+ market is becoming an increasingly important focus of the nation’s housing industry as members of the baby boom approach the traditional retirement years,” says the National Association of Home Builders. “But builders hoping to entice households into new homes may find the going tough because older Americans, by and large, are happy with where they currently live.”

Those above age 55 — an age which hardly seems ancient — play an important role the real estate. As people age they tend to earn more (because they’ve built up their business and job experience over time) and owe less (because their mortgage has been paid down or paid off and the children have finished school).

As to moving, those born in 1952 and before may have little incentive to change residences when a shift to another location means finding a whole new supporting cast of shops, restaurants, friends, doctors and neighbors.

Still, while the percentage of baby boomers who move is relatively small compared to their overall numbers, they nevertheless are an important part of the housing market.

In 2007, says NAHB, “the number of housing units sold to or occupied by these households will account for more than 370,000 of this year’s expected 1.6 million housing starts, with 263,000 of them single-family. The estimates also show that 55+ customers this year will account for more than 190,000 of a projected 970,000 new single-family sales and more than 900,000 of a projected 5.25 million existing single-family home sales.”

The housing needs of the baby-boom generation are distinctly different than the population in general. A recent visit to an “older” couple in Richmond, VA, reflected many of the values that baby-boomers prefer.

The home was not in an over-55 community. Instead, it was simply in a new project with a rec center, lake and easy access to shopping and downtown. While some baby-boomers prefer over-55 communities with their child-free environments, others find a mix of age groups interesting and stimulating.

The home itself was on a single floor which means there were no stairs to navigate. Our host — the victim of a recent freak accident (hit by a wave at the beach which resulted in a broken leg) — was able to easily maneuver around the house because every room and switch was accessible by someone in a wheelchair.

The square footage of the home was not massive, but then vast size is not an attraction when there is little interest in huge amounts of space to clean. What was attractive was the way space was used with great efficiency, many built-ins and high ceilings.

Alternatively, there is an attraction to over-55 communities, especially when well located. “Sixty-six percent of Baby Boomers say they plan to stay within three hours of their current location,” says Del Webb, which is now developing Sun City Peachtree, a 1,726-acre property 35 miles from downtown Atlanta which is ultimately expected to have 3,400 residences.

“There’s a secret weapon in our business and it’s called grandkids,” says David Vitek with Del Webb. “Staying close to family and friends, and maintaining links to their community are important things to them.”

While many metro areas have now seen a slow-down in real estate sales and a decline in home values, such issues are largely irrelevant for baby boomers. Although home prices today may no longer be at the top of the market in many communities, baby boomers have less reason to be concerned than newer buyers.

On average, says the National Association of realtors, a typical existing home in 1987 sold for $85,600. This compares with $212,800 for February 2007, down 1.3 percent from February 2006 when the median was $215,700.

If you’re a homeowner you would certainly prefer home prices to rise, but if you’re a long-term homeowner like many boomers then short-term marketplace blips are largely irrelevant. Here’s why: First, whatever today’s price for local homes it’s likely to be sharply-higher in most areas than the price paid 15 or 20 years ago.

Second, the cost-basis for baby-boomers is routinely far-lower than the monthly expense for newer buyers with similar properties. This is the result of a lower acquisition price and thus a smaller or nonexistent mortgage.

Third, many communities make local ownership attractive by offering homestead exemptions for residential property owners and special tax benefits for those aged 65 and older.

Given these factors, many boomers ask: Why move? While retirement may loom, “retirement” as defined in the old sense of sitting on the front porch is out. Many boomers want to work (at least part time), have money, like to travel, are physically fit (thanks to exercise, no smoking, little alcohol and modern medical care) and are as alert anyone in the neighborhood — a neighborhood they know and like.

However, there is one particularly good reason why boomers may want to move, especially if the new home is nearby and represents a better property in the same neighborhood.

If they elect, boomers can often buy new homes with equity built-up over time; that is, they can move from an older property to a new one at little or no additional cost — and sometimes at a profit.

Imagine that someone owns a $500,000 home free and clear. They could move to a $300,000 property, perhaps a condo or smaller home, and pocket huge amounts of tax-free profits from the sale of the long-term residence. The end result is a newer home, perhaps a more friendly architecture, plus cash that generates additional interest and investment income. to supplement pensions, social security and other earnings.

Increasingly builders and brokers will have to learn how to work with older citizens, individuals who are not going to move without good reason, individuals who are vibrant, informed and clear about their needs and preferences

A high pressure system in the West and Southwest was expected to push temperatures way above average this week, removing the need for a grill to sear hot dogs.

You’ll need that sense of humor this year as the summer begins to heat up with the first widespread heatwave forecast for the West and Southwest.

Climatologists expect more severe, longer lasting heatwaves to bake the nation in more locations due to higher temperatures world wide — a result of global warming.

California’s Emergency Digital Information Service Tuesday advised steps to take to beat the heat when it issued warnings about temperatures as sizzling as fireworks and humidity upping the heat factor.

More people in the U.S. die from extreme heat than from hurricanes, lightning, tornadoes, floods, and earthquakes — combined — according to the Centers for Disease Control.

Surviving a heatwave is a lot like surviving any disaster.

Plan ahead, in this case, to keep cool.

• Get informed. Because heatwaves drain the power grid as households turn on more fans, swamp coolers and air conditioners, blackouts are possible. Keep tabs on your local utility’s website for heatwave, power consumption, brownouts and blackout information.

If someone in your household is on life-support systems, you should notify your power company when the support system is installed. Most utilities will notify life support customers first if service will be interrupted for whatever reason. But because all outages are not planned, life support backup is crucial.

If a liquid or natural gas fired generator is your back up for life support or other electrical needs, follow the manufacturers instructions to the letter. Never operate generators indoors including in a basement, garage or other enclosed space. Never connect the generator to the home’s electrical system without a code-complying transfer switch. Get advice in advance from a licensed electrician.

• Get out. For those times when it’s 110 in the shade, your plans should include an escape to Cool Town.

Most communities offer “cooling centers,” including community centers, armories, hospital waiting rooms and a host of other public and sometimes private facilities that share their cooler air when the weather outside is dreadful. Some cooling centers, like hospitals and clinics often have emergency back up power. Even if there’s no power outage and you don’t have air conditioning, plan to give your body a break at a cooling center for a few hours every day.

Your local office of emergency planning, energy department, Red Cross branch and utility company will point you in the right direction. Again, it’s important to obtain this information in advance.

The best cooling center is within easy walking distance.

Other cool shelter may be found nearby at a friend’s, relative’s or neighbor’s house, in a shopping mall, movie theater or a hotel or motel where it might be a good time to take a brief vacation. The lights could be out on one side of the street, but not the other.

• Stock food and water. In a blackout, keep your refrigerator and freezer doors closed as much as possible to prevent food spoilage. Food in a fully loaded, closed freezer can stay frozen for up to two days. If it’s half full, food will last about one day.

During a heatwave, keep a large bag or two of ice in your freezer (it can help fill empty space) and make sure your ice cube tray or receptacle is full. Consume perishables first, but have on hand food in that survival kit you are supposed to keep for any kind of disaster.

The Red Cross says, for each individual survival kit, you should have enough food and water to last for three days, but in a scheduled, rolling blackout, you’ll only need a fraction of that amount. Don’t forget food and water for your pets.

For outages that drag on for more than two or four hours, pack refrigerated milk, dairy products, meats, fish, poultry eggs, leftovers and others refrigerated items in a cooler surrounded by ice. This is another reason to keep extra ice on hand. Retailers run out of ice during heatwaves.

Discard any perishable refrigerated foods that have been above 40 degrees F for more than two hours. That means, you should have a digital quick-response thermometer in your survival kit. It will come in handy to check food temperatures when you return home after a outage has already begun. Discard any food with an unusual odor, color or texture. When in doubt, throw it out.

Keep hydrated. Continue what should be the usual regimen for adults — eight, four-ounce glasses of water a day, more if necessary, less for kids. Don’t over hydrate.

• Distribute supplies to every family member. In addition to food and water survival kits for everyone, each member of the household should have a flashlight, extra batteries, medical prescriptions, hygiene supplies and other personal items. Pack in some luxuries and fun items — candy, toys, handheld video games, travel-sized games, etc.

You should also have a first aid kit, corded telephone that doesn’t require electricity, a cell phone (remember, batteries do run down and networks get overloaded during emergencies), satellite phone or other means of communication. A portable battery-operated AM-FM radio (know which station to tune in) or a small television will keep you informed about the blackout. You vehicle’s gas tank should always be half full and you should know how to crank your garage door if it’s normally powered by electricity.

• Electronics, electricity-powered appliances and the elderly need attention too. Always back up computer data regularly. Turn off or disconnect any appliances or electronic devices you were using when the power went out. Turn them off in advance if you receive notice of an impending rolling blackout. Leave one light turned on so you’ll know when your power is restored. In hot weather, keep a close eye on older people, infants and kids who can’t always verbalize how they feel, but who are most susceptible to heat.

As a long term solution to guarding against heatwave-induced blackouts, consider tacking solar panels onto your roof. When the power goes out, you’ll have not only a carbon-free source of energy, you’ll be the envy of your neighborhood — and perhaps a cooling center for your neighbors.

 Question: What does Subordination mean? We have a first trust and a home equity loan, which we learned is referred to as a HELOC. We applied for a refinance loan with a mortgage lender and were asked if we wanted to payoff the HELOC. When we opted to keep that loan on the books, the loan officer advised that it would have to be subordinated, but that the loan officer would take care of it.

We set up a settlement date, and on the morning of settlement, the lender advised us that the HELOC had not been subordinated, and further that we had to make the arrangements. When we contacted the HELOC lender, we were advised that the new lender had to make the arrangements.

The net result is that we were unable to settle at the loan rate which we had locked in, and had to pay a higher interest rate. The lenders were pointing fingers at each other, and both lenders were blaming the settlement company. We were the victims, who were caught in the middle of this three-ring circus.

What went wrong? Do we have any recourse?

Answer: Yes, since the refinance lender promised you that he would take care of the subordination, that lender breached its commitment and should be forced to honor the original lock-in interest rate.

I suggest that you contact the senior vice-president of the lender, explain the situation and ask them to correct the problem. If the lender (which happens to be a major, national bank) refuses, I would formally complain to the following government agencies: the Attorney General in your state, the Federal Trade Commission, and the Federal Reserve Board.

If you have proof that your lender made this promise to you (such as having a witness present) the fact that it may have been a verbal statement does not mean it is not binding. Oral contracts are enforceable except when real estate matters are involved. But here, we have a mortgage loan case — and not a real estate issue.

What is subordination? An online dictionary defines this as “to make subject or subservient, or to treat as of less value or importance.”

Let’s take your situation: your home is worth $400,000, and you have a first trust (mortgage) in the amount of $150,000, and a HELOC in the amount of $100,000. It should be noted that the HELOC is a second trust, which is recorded among the land records in jurisdiction where your property is located.

You want to refinance the first trust, but keep the second in place. Your new lender wants to be in first trust position, so that should you become delinquent on your loan payments, that lender will be able to foreclose and be first in line to get the sales proceeds.

When you refinance, the moneys from the new lender will be used to pay off the original first mortgage. That means that your HELOC — which was in second position — will automatically become first in line.

Accordingly, you were asked to enter into a “subordination agreement” whereby you — and the HELOC lender — agree that the HELOC will remain in second place. This agreement is recorded among the land records at the same time that your new first trust is recorded.

The process to obtain a subordination agreement usually takes a couple of weeks, since it has to be signed by the HELOC lender. Your new lender should have alerted the settlement company that subordination was required, and obviously this was not done.

Does your settlement company share any of the blame? Possibly. But many homeowners who refinance want to pay off both loan, and if that company was not aware of your intentions, it may not be responsible for the problem.

Your situation is unfortunate, but I believe you have recourse. And I also suggest that you made the right decision to keep you HELOC in place.

The home equity loan gives you access to instant cash, when you need it. You do not pay interest on the loan until you take your money. In effect, the checkbook is in your dresser drawer waiting to be used

Okay, I can’t 100 percent vouch for this because I haven’t seen the agreement, but here’s the story;

About a month ago I got an email from someone inquiring about a possible home loan, noting that their credit was bad but they were working on getting it fixed. It seems the wife had a bankruptcy 5 years ago due to a severe injury which kept her from working. Then about a year and a half ago her husband was laid off and they experienced late payments yet again.

But that’s not the story.

The story is that she was waiting on their credit scores to improve as they’re working with a lawyer who is writing letters each month to the credit agencies disputing her negative items on the reports and charging her $60 per month until all the negative items have disappeared.

I shot her an email back that said to forget about the letter writing campaign. FICO scores don’t read letters; they read activity on your credit accounts. That made sense to her she said because her scores were actually worse than when she started with this lawyer-type.

Oddly enough, I was speaking to a Realtor buddy just this past Monday and he gave me a heads up on someone who wanted to buy one of his listings and he referred them to me. That night I got an email from that referral.

From the very same lady.

I called the customer, not yet realizing it was the same person, and we discussed her situation. It began to become very familiar when finally she said, “You know, you and I talked about a month ago. I’m the one with the lawyer who is writing all those letters.”

I immediately remembered, and asked if I could see a copy of her credit report. She faxed it to me and I could see multiple accounts with the comment inserted, “Consumer Disputes: Under Investigation.”

What the lawyer was disputing was in fact erroneous entries on accounts that should have been listed as discharged in the original bankruptcy but anyone who routinely reviews credit reports like I do will tell you that nearly every credit report with a bankruptcy listed will be filled with these sorts of errors: items that appear as outstanding collections when they should be listed as “Discharged in Chapter 7 Bankruptcy.”

The lawyer was messing her up in two ways but probably didn’t know it.

1: Disputing old information with explanation letters does nothing for a score and

2: Opening up dormant accounts that are several years old only serves to breathe new life into an account that will begin to damage the credit score all over again. Sort of like a Credit Frankenstein.

Credit scoring pays close attention to the recent two year history and little if any attention to things that are four or more years old. The disputes were actually doing more harm than good.

Dispute letters and credit reports are “old school” in credit terms.

If you or someone you know has such “credit repair services” in place or are considering them, be wary of their effect. Something that you thought might help your situation might in fact be preventing credit repair from taking place … or worse, hurting your credit scores all the more.