Homebuying often a complex, confusing and emotional process

by Maritza Mariani
Associate Director, Neighborhood Development Alliance

One can’t pick up the newspaper or watch the news without reading or hearing the heart- breaking stories about the increase in foreclosures in the State of Minnesota and the negative impact it has on families and communities. Neighborhood Development Alliance (NeDA), a non-profit housing program located on the West Side of St. Paul, has also seen an increase in the number of families seeking foreclosure prevention counseling. NeDA has noted that 98% of the families coming in for foreclosure prevention counseling had little or no understanding of the home buying process. All of the families seen were Spanish speakers who did not know or understand: the loan product they received or the terms of their loans; the condition of the property they purchased; the fact that the homes in many situations were overpriced; that the financing received was (for example) an 80/20 with two separate mortgage payments which did not include property taxes and insurance; or an adjustable rate mortgage with pre-payment penalties.

Although all of these families were assisted by someone who spoke their native language, they were not given all the information necessary to make the right decision when purchasing a home. For this reason, NeDA continues to offer HomeStretch workshops to help families understand the “ins & outs” of homeownership before meeting with a realtor, lender or broker. NeDA also provides housing counselors who can meet with individuals and/or families who may need to work on credit issues, a savings plan or a household budget before considering homeownership. As a non-profit housing program, NeDA is independent of both real estate and lending institutions.

If you are thinking of homeownership, consider the “HomeStretch” workshops as the first step toward your homeownership goal. The workshops are designed for first time home buyers; we charge a minimal fee of $35.00 for the household to cover material expenses. By attending the nine-hour HomeStretch workshops and/or meeting with a housing counselor, interested homebuyers will walk away with quality information regarding the home buying process. You will understand how to work with a lender, broker or realtor, and what their responsibilities are to you, the consumer. You will understand that one housing professional should not “take care” of everything for you! You will understand the importance of paying for an inspection, and the fact that if you don’t pay for an inspection it could cost you more money later on. You will understand that there are many mortgage products available and which ones to stay away from. You may even complete the workshops and decide you need to wait a year or two. Our job is to guide you through this confusing, often complex and emotional process of buying a home, by providing you with accurate information so that you make the right choice for you and your family without any pressure.

NeDA offers the workshops in English and Spanish; for a complete schedule go to www.nedahome.org or call 651-292-0131 for more information. Additional workshop information can be found through the Minnesota Home Ownership Center at www.hocmn.org.

Work starts on Zenith condos in Mpls.

Minneapolis / St. Paul Business Journal - 2:32 PM CDT Tuesday, March 27, 2007
by Carissa Wyant
Staff Writer

The developers of the Zenith Condominiums project have broken ground on the site in the downtown Minneapolis Mill district, and signed the University of Minnesota Physicians Clinic as a tenant.

According to a press release from Sherman Associates, demolition was recently completed at the site located new Guthrie Theatre, and environmental cleanup of the area is underway. The first phase of the new development will have 65 units designed by Minneapolis-based architect Elness Swenson Graham Architects. More than 40 percent of the units have been sold, the developers said in a press release.

The University of Minnesota Physicians Clinic has also agreed to lease the first floor of the project. According to information provided in the release, the new clinic will offer unique "concierge style" environment. University of Minnesota Physicians is a division of Fairview Hospitals. This will be its first downtown site.

Snowstorms prompt Builders Association to extend Parade of Homes

By Aimee Blanchette, Star Tribune
The Builders Association of the Twin Cities will extend its Parade of Homes Spring Preview to March 25 because of snowstorms earlier this month.

A complete list of open homes is at www.paradeofhomes.org.

Building for Inspiration

David Bernard Builders & Developers, a division of Minnesota-based Rottlund Co., was honored recently for two model homes built at Inspiration, a new eco-friendly conservation neighborhood in Bayport.

The homes were recognized at the Nationals 2007 awards competition, sponsored by the National Sales and Marketing Council of the National Association of Home Builders.

Inspiration is a 254-acre development of 251 single-family homes surrounded by 170 acres of preserved open space, restored native prairie, oak savanna, wetlands and woodlands. More information is at www.inspirationbayport.com.

Midtown Condos now open

Midtown Exchange Condos on the Greenway officially opened last week, adding mixed-income housing to revitalization efforts along E. Lake Street in Minneapolis. Prices range from $89,500 to $261,900; more than a quarter of the 57 units are reserved for buyers who have incomes at or below 80 percent of the area's median. Project for Pride in Living, a Minneapolis nonprofit group, developed the project.

The condos are at 11th Avenue and the Midtown Greenway, adjacent to the Midtown Exchange on E. Lake. Units range from 624 to 1,478 square feet and have several floor plans, including two-story townhouses and single-story flats. More information is at www.ppl-inc.org.

Active-adult housing honored

The Builders Association of the Twin Cities (BATC) has announced winners of the first Best of 50+ Design and Marketing Awards. The awards recognize design and marketing excellence in active adult for-sale housing, apartments and assisted living communities. The award program is sponsored by the BATC's 50+ Housing Council, formed to help builders and developers succeed in the active-adult housing market in the Twin Cities, which the BATC says is the home-building industry's fastest-growing segment. The results are at www.batconline.org.

More of the Comforts of Home

Comforts of Home is a new company that builds assisted-living and memory-care communities in the Twin Cities with the comfort and needs of seniors in mind. The newest is to open this spring in North Branch, Minn. Others are in Blaine, Hugo and White Bear Lake, with more planned for Champlin, Maplewood and Columbia Heights. Information is at www.comfortsofhomemn.com.

Survey show Lennar top builder

Lennar was the Twin Cities area's top home builder in 2006 as ranked by gross annual revenue, according to a survey by the Builders Association of the Twin Cities. Lennar reported revenues of more than $432 million, with 1,189 housing units closed in 2006. Centex Homes ranked second with $251 million, followed by D.R. Horton with $214 million, Pulte Homes of Minnesota with $186 million and Ryland Homes with $143.5 million. A complete list is at www.batconline.org.

NOTABLE PEOPLE

Bjorn Freudenthal, general manager of College City Remodeling, a division of College City Homes, has been elected president of the Minnesota Chapter of the National Association of the Remodeling Industry.