Think Twice Before Cleaning A Neighboring Yard - A Good Dead Could Lead To Jail Time

A Bay City, Michigan commissioner who says he was trying to clean up the yard of a blighted home now is facing a

misdemeanor charge.

Reports are that Chad Sibley was arraigned this month on larceny of $200 or less, which is punishable by up to 93 days in jail and a fine of $500 or three times the value of the property.

Police reports say Jeana L. Wolcott told officers in April she recently lost ownership of her home due to unpaid property taxes and said she had until July to get out. She told police that a lawn mower and grill were missing from her backyard.

Sibley told police he took the grill and broken mower to the curb. Trash pickers apparently took them away.

"I have been cleaning up the backyard of that house," he said, according to the report. "The house is a blighted property. I haven't seen anyone at that house in months. Once the house was foreclosed, I started to take down the fence and I cut a bunch of the Mulberry trees down. I took a grill and a broken lawn mower to the curb. I know it was broken because it had no connection piece. These things haven't been moved for months.

"I am just trying to clean it up because it looked bad. I am certainly willing to replace anything that they say was taken or damaged. I figured if the new owners wanted the fence back up that I could just pay for a brand new one."

A few simple ways to save thousands on your new home purchase

Mortgage lender Fannie Mae just made a move to make

homeownership more affordable, and it's one of many things that can help you save some cash when buying a home. If you're not taking advantage of every money-saving opportunity out there - and there are a lot of them - you're just leaving money on the table.

1. Take advantage of new programs       

The aforementioned Fannie Mae program "will now pay your closing costs, up to 3% of the price of the home—provided you take the mortgage giant's home-buyer counseling course first," said Realtor.com. called the HomePath Ready Buyer program, it "allows first-time buyers (defined as those who have not owned a home in the past three years) to take an online course, get certified, and become eligible for what could amount to significant savings. For instance, on a $150,000 home, Fannie Mae could contribute up to $4,500 toward your closing costs—which typically range from 2.5% to 3% of a home's price."

2. Ask the seller to pay closing costs

In an appreciating market, you may have a hard time getting the seller to kick in—especially if they have other offers to consider. Make sure you ask your real estate agent for advice (and listen to it). You don't want to offend or amuse the seller into outright rejecting your offer.

3. Negotiate everything

Want the seller's refrigerator or dining room set? Ask for it. Could be that they're trying to get rid of them anyway.

4. That goes for new homes, too

If you're buying a new home, you may not have a ton of negotiating power when it comes to the sales price, but you may when it comes to upgrades. If you love the wood floor or quartz counters in the model, you just may be able to get them thrown in at no extra cost.

5. Use your builder's in-house lender

Another way to potentially save money on a new home is to use the builder's in-house lender, if they have one. A builder can't require you to use their lender, said Bankrate, but they may offer incentives to do so.

6. Fix up your credit

NEA Member Benefits found that poor credit can account for an extra $82,000 in interest on a $250,000 home loan. "The total interest paid for a home with a 630 score—nearly a quarter-million dollars over the lifetime of the loan—is enough money to buy a second house. There is always a cost to credit, and that cost can increase tremendously due to a low credit score."

7. Shop for the best loan

Settling for the first loan that comes your way might not be the best bet. Different lenders offer different rates. Shop around to see what your best options are.

8. Get a co-signer

If you're having trouble qualifying for a home at a low enough interest rate, a cosigner can help. "Part of that person's income can be considered toward your loan amount regardless of whether the person will actually be living with you or helping you pay the bill," said Investopedia.

9. Put 20 percent down

Twenty percent is the magic number when it comes to whether or not you have to pay Private Mortgage Insurance (PMI). PMI can add hundreds of dollars to your monthly payment, and can't be removed until sufficient equity in your home has been realized. If you can swing 20 percent, it will save you money. If you can't, try asking a family member for a gift or get down payment assistance, said Chase.

10. Buy a fixer-upper

A lesser-known FHA loan may present a great opportunity for those who are having a hard time finding an affordable home in a competitive market and who love a project.

This loan "not only covers the cost of buying the property, but also for remodeling expenses and closing costs allowed by the terms of your FHA home loan," said the FHA. "The best part of these ‘fixer upper' loans? The approved FHA loan amount also includes a percentage of the total remodeling costs (as spelled out in your submitted plan) set aside just in case there is extra work needed."

11. Read the fine print

When you get your good faith estimate from your lender, read everything. There may be some miscellaneous fees that can be negotiated out.

Can You Use Monetary Gifts For Down Payment On A New Home?

In order to get into the housing market, many homebuyers are accepting gifts from family or friends in order to meet down payment requirements by lenders. In fact, as of 2012, one in five Baby Boomers has either gifted, loaned or co-signed a loan to help children or grandchildren buy their first home.

But along with other borrowing restrictions following the housing bust in 2008, lenders cracked down on down payment gifts, too. No longer can a homebuyer "pass the hat" to relatives and friends in order to come up with enough cash to put down on a home, whether it's a 3% minimum required for an FHA government-guaranteed loan or 20% required for a large conventional Fannie Mae or Freddie Mac-bound loan.

Because gifts are a gray area, lenders are requiring more documentation for down payment monies. For example, a parent may provide a few thousand dollars to an adult child to use as a down payment -- but is the money a gift or a loan? Lenders may require borrowers and gift-givers to provide a certified downpayment gift letter or to sign a affidavit.

Such affidavits must include:

• The amount of the gift, accompanied by a corresponding cashier's check

• The name and address of the gift-giver and relationship the gift-giver has to the homebuyer

• The purpose of the gift -- to be used only as a down payment on the subject property, complete with the property's address

• A statement confirming that the gift is not a loan, and does not need to be repaid

Signatures of the borrower and the gift-giver

Because lenders require a paper trail, allowing parents to simply transfer money into the borrower's account to mix with the borrower's funds is discouraged. First, a large deposit raises the borrower's income and alters the bank statements, possibly allowing a borrower to qualify for a home that in reality is too expensive.

Banks also limit the size of gifts in relationship to the total down payment. For example, some loan programs require the borrower to contribute at least 3% to 5% of the down payment if the down payment is less than 20%, while other programs allow the entire down payment to be supplied by a gift.

If you're planning to use a gift as part or all of your down payment, ask your lender how to meet the appropriate requirements.

Read Next : Ten Steps To Take When Buying Your New Home