Happy New Year To All!
Here's to a Happy and Prosperous 2010
All in the Day of a Realtor- Real Estate Happenings in Salt Lake City and Beyond...
Thursday, December 31, 2009
Wednesday, December 30, 2009
COUNTDOWN FOR TAX CREDIT TO HOMEBUYERS
Just a reminder to qualify for the $8,000 homebuyer's tax credit, you must have an offer accepted and under contract by April 30th and close by Jun 30, 2010. Don't miss out on this exceptional tax incentive soon to end. A normal closing time takes around 45-days. You have to get pre-qualified, then shop for a home, make an offer, then wait for an acceptance from the seller. This all takes time, so don't wait until it is too late and you miss out on the lowest interest rates and incentives we have seen in the Real Estate market.
Sunday, December 27, 2009
Balancing Home Purchase in 2010
It looks like for some of the lucky people still employed with a steady job, 2010 will be the year to buy a home. With home values plummeting to 2003 prices and fixed mortgage rates still at near record lows, what’s to think about?
Now add the facts with the foreclosure epidemic, the current housing market has created great opportunities for those bargain hunters in the market for the best deal of the century. To top that off, good old Uncle Sam is throwing thousands of dollars into the pot for not only first-time home buyers, but also existing homeowners who have been in their home a minimum of five years and close a purchase by June 30th, 2010.
There are a few important factors that would inhibit you from cashing in on a good deal:
1. You have to have a stable job, true story! So make sure and take a serious look at your employer, the company, and the industry as a whole to make sure your position looks secure. Unemployment is expected to rise in 2010.
2. Credit score needs to be registering on the mortgage lender’s rector scale, usually 700 or above.
Of course there are other requirements and considerations that go into the equation in order to qualify for a home loan, but these are the two basic show stoppers before considering further action on your part, which should have always been in place for anyone buying a home. So if you feel good about your present situation, you have money in the bank for earnest money and closing costs, and you haven’t maxed out your credit cards or behind in your current mortgage payment, you’re good to go!
Happy house hunting, and oh by the way, remember, nothing in life is free! We will always be held accountable for those agreements we enter into and everything has a price tag no matter how sweet the deal, so be careful and wise. Make sure you have a great Realtor (Buyer’s agent) on your team to assist you through the process making your next home buying experience both stress free and profitable.
There are a few important factors that would inhibit you from cashing in on a good deal:
1. You have to have a stable job, true story! So make sure and take a serious look at your employer, the company, and the industry as a whole to make sure your position looks secure. Unemployment is expected to rise in 2010.
2. Credit score needs to be registering on the mortgage lender’s rector scale, usually 700 or above.
Of course there are other requirements and considerations that go into the equation in order to qualify for a home loan, but these are the two basic show stoppers before considering further action on your part, which should have always been in place for anyone buying a home. So if you feel good about your present situation, you have money in the bank for earnest money and closing costs, and you haven’t maxed out your credit cards or behind in your current mortgage payment, you’re good to go!
Happy house hunting, and oh by the way, remember, nothing in life is free! We will always be held accountable for those agreements we enter into and everything has a price tag no matter how sweet the deal, so be careful and wise. Make sure you have a great Realtor (Buyer’s agent) on your team to assist you through the process making your next home buying experience both stress free and profitable.
Thursday, December 24, 2009
Tune in to Real Estate Today Radio
Real Estate Today radio station opens doors for buyers and sellers with critical and credible information on the real estate market. It’s fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.
On radio stations, satellite, and podcasts… even cell phones, Real Estate Today is your instant connection to the American Dream of home ownership. I am pleased to offer this additional communication and informational tool to my clients and business associates.
Tuesday, December 22, 2009
One Way To Guarantee Foreclosure...
Today I will be headed out with another member of my team to visit about 15 homeowners who are in Notice of Default to give homeowners an informational brochure so they are aware that they may qualify and have alternative options to avoid foreclosure. The most important factor when a homeowner is in this situation is to become pro-active and check out all their options EARLY! The clock is ticking once you receive that NOD and to do nothing you will lose your home, guaranteed! According to statistics in the Financial and Real Estate field, a majority of Foreclosures could be avoided if the homeowner takes action early on to find an alternative solution to their personalized situation.
To enhance my education and knowledge I just finished my certification for SFR endorsement, which is Shortsale and Foreclosure Resource. Please feel free to call me if you need assistance or want to know what alternative options might be available to you. I am experienced in the field and I am here standing by to assist. 801-856-6594.
Sunday, December 20, 2009
Home Ownership
Florence King (b. 1936), U.S. author. “Democracy,” Reflections in a Jaundiced Eye (1989).
Saturday, December 19, 2009
All About Santa Clause
Saint Nicholas is the main Clause.
His wife is a relative Clause.
His children are dependent Clauses.
Their Dutch uncle is a restrictive Clause.
Santa’s elves are subordinate Clauses.
http://christmasjokes.wordpress.com/
His wife is a relative Clause.His children are dependent Clauses.
Their Dutch uncle is a restrictive Clause.
Santa’s elves are subordinate Clauses.
http://christmasjokes.wordpress.com/
Friday, December 18, 2009
Home prices predicted to fall in 2010
Fiserve, a financial information and analysis firm predicts an 11.3% housing price plunge by the middle of 2010.
Moody’s Economy.com calls for a 5-10% fall in home prices nationwide during 2010.
LendingTree’s chief economist Cameron Findlay predicts, “We continue to forecast a 5-7% decline in national average home prices.”
What does this mean? Check back tomorrow for continuation "Lurking in the Shadows"
Information gathered from bankrate.com
Open Hands
For those of us who are blessed with two hands…open those two hands to reach out to help not only yourself, but others in life.
They are your strongest tools for which to achieve, serve others, and make friends; so use them wisely and reach out with open hands to open the way to achievement. ShirLee McGarry
Thursday, December 17, 2009
Credit card's newest trick: 79.9 percent interest This credit card's newest trick?
Just when you think things couldn't get worse....
NEW YORK (AP) -- It's no mistake. This credit card's interest rate is 79.9 percent.
The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules.
You can find the article on yahoo Finance:http://finance.yahoo.com/news/Credit-cards-newest-trick-799-apf-3359014390.html?x=0&.v=4
Are we having fun yet?
Existing Home Sales Reports Big Gain
The latest NAR reports Existing-Home Sales Record Another Big Gain, Inventories Continue to Shrink
November 23, 2009 - Driven by the first-time buyer tax credit, existing-home sales showed another big gain in October with a strong uptrend established over the past seven months, while inventories continue to decline.
Integrity Within The Home
“The strength of a nation is derived from the integrity of its homes”
Confucius quotes (China's most famous teacher, philosopher, and political theorist, 551-479 BC)
Wednesday, December 16, 2009
2010 Residential Estate Market
Case Shiller just released its latest report on the state of the residential estate market. The good news is that home prices are falling more slowly. The bad news is that that we have a little ways to go.
What the Numbers Show:
• Through August, 2009, the price of an average home sold in the US fell approximately 13 percent, year over year, from 2008 levels.
• Home prices have now dropped to 2003 valuation levels, wiping out 6 years of home appreciation.
• Since the peak in 2006, average home prices are down 33 percent.
What Do the Numbers Say About the Future??
• Prediction: The “average” home price will likely fall more than 13 percent by year end. Reason: Home prices are always at their highest in the spring and summer. Families move during this time of year and they buy the largest, most expensive properties. As a result, Summer home sales skew the “average” price upward in the fall, but only temporarily.
• Prediction: Home Sales will suffer a downturn due to the expiration of the $8000 First Time Buyer’s Credit. So far this year, 350,000 buyers have been persuaded to purchase because of this incentive.
What the Numbers Show:
• Through August, 2009, the price of an average home sold in the US fell approximately 13 percent, year over year, from 2008 levels.
• Home prices have now dropped to 2003 valuation levels, wiping out 6 years of home appreciation.
• Since the peak in 2006, average home prices are down 33 percent.
What Do the Numbers Say About the Future??
• Prediction: The “average” home price will likely fall more than 13 percent by year end. Reason: Home prices are always at their highest in the spring and summer. Families move during this time of year and they buy the largest, most expensive properties. As a result, Summer home sales skew the “average” price upward in the fall, but only temporarily.
• Prediction: Home Sales will suffer a downturn due to the expiration of the $8000 First Time Buyer’s Credit. So far this year, 350,000 buyers have been persuaded to purchase because of this incentive.
Tuesday, December 15, 2009
Reduction of Listing Inventory
A reduction in inventory can happen in cities where unemployment rises. Sellers usually will withhold listings from the market or cancel listings that don't sell within 90 days.
The biggest demand in 2010 will come from first-time home buyers, inventory will fall. Unfortunate as it may seem, falling inventory will not drive up the prices.
The biggest demand in 2010 will come from first-time home buyers, inventory will fall. Unfortunate as it may seem, falling inventory will not drive up the prices.
© Big Stock Photo
Monday, December 14, 2009
Famous Quotes
Sunday, December 13, 2009
Quote on Homeownership
"...Almost any man worthy of his salt would fight to defend his home, but no one ever heard of a man going to war for his boarding house...”
Mark Twain quotes (American Humorist, Writer and Lecturer, 1835-1910 .
Saturday, December 12, 2009
Gettin' Ready For Christmoas
GETTIN' READY FOR CHRISTMAS
Copyright © SJM November 1985
Gettin' ready for Christmas
Haul out the holly today,
It's gonna be so fun to see everyone
So happy and gay
Now that the Season's begun.
Gettin' ready for Christmas
There's only nine more day,
You better call in your order,
So Santa will know to
Pack all your goods away.
Now there's that shopping spree
For the Christmas Tree
There's only six more days
There's so much to buy, Oh me oh my!
There's only one five more days
Gettin' ready for Christmas
You better start today
Or you might find yourself
In a real bind
Come this Christmas Day
Now there's candy to make,
And cookies to bake oh,
There's only three more days.
It's really gettin' late, so let's celebrate,
There's only two more days.
Gettin' ready for Christmas
There's only one more day
Now that you've gone for broke,
It's no joke!
Tomorrow is the day
No payments due til' next year
So give a big cheer,
Gettin' ready, gettin' ready,
Gettin' ready for Christmas Day.
Friday, December 11, 2009
THE HOUSE OF CARDS
THIS IS A MUST SEE! http://www.cnbc.com/id/28892719/
CNBC presents the definitive report on the defining story of our time. CNBC correspondent David Faber investigates the origins of the global economic crisis, with first person accounts from home buyers, mortgage brokers, investment bankers and investors – most of whom let greed blind them, leading to the greatest financial collapse since the Great Depression.
THE HOUSE OF CARDS
Thursday, December 10, 2009
Streamlining Short Sales
HAFA Home Affordable Foreclosure Alternatives Program
Sellers and Buyers of Short Sale Properties - The short sale process is about to be adding choices in streamlining the process where applicable. On November 30th, 2009 the Treasury Department released a new form and guideline and gave it the acronym of HAFA. HAFA is component of the Home Affordable Modification Program (HAMP). Because of the many problems with short sales, the (NAR) National Association of Realtors, has urged the Obama Administration to take action now.
The HAFA program will provide incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure of a loan eligible for modification under the HAMP program. These loans cannot be owned or guaranteed by Fannie Mae or Freddie Mac, and according to the report, both Fannie and Freddie will be issuing their own versions of HAFA in coming weeks.
Many problem issues will be addressed in the program including: pre-approval sales terms before listing the property, prohibiting servicers from requiring reductions in real estate commissions that do not exceed the 6 percent, paying incentives, releasing borrowers from future liability for the unpaid portion of the first mortgage debt, and lastly imposing deadlines at each stage.
This is definitely a step in the right direction for both the real estate industry and buyers and sellers in the short sale process.
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program ends on December 31, 2012.
Tuesday, December 8, 2009
Christmas Decorating Ideas
Christmas Decorating Ideas Along with the Christmas festivities comes the desire to decorate your home with twinkling lights, wreaths, trees and even yard ornaments featuring the theme of the holidays. If you want to make your next Christmas decorating venture a real holiday treat, consider the following ideas:
Homemade Wreath Decorations
Create your own lighted wreath by taking a short strand of mini-lights and wrapping them around a plain wreath. You can use either multi-color or clear lights, and this approach can easily be used for both indoor wreaths and garland decorations.
Creating A Modern Centerpiece With Classic Holiday Style
Use a clear glass vase or bowl as a centerpiece and fill it with round glass ornaments. For Christma
s, the combination of silver and gold or red and green will be ideal. When paired with the beauty of a simplistic glass holder, the ornaments will add a very modern twist to a very traditional color combination.Monday, December 7, 2009
Thursday, December 3, 2009
Loan Limit Appeals Process Announced
Keeping my clients updated with the latest government changes in real estate law and the mortgage lending sector, I hope that these update reports from the National Association of Realtors is helpful in dealing with the many challenges we face as real estate professionals working with our buyers and sellers with their real estate goals of home ownership.
As we go forward, there will always be new laws passed in an attempt to keep the our country's housing industry viable for all, while protecting the consumer. Some will be of merit and those that will hurt the industry, the National Association of Realtors and the Government Affairs Committees around the US are watching and protecting our rights as homeowners in making representation on capital hill.
By having a strong voice on capital hill and educating our law makers to major concerns that would affect all of us in a negative way, NAR has been successful in defeating legislation that would be detrimental to all homeowners. NAR has been equally successful in lobbying for those reforms and programs that help keep the real estate industry healthy and protect consumer's most precious possession and asset...their home!
Realtor Insider DC News and Events Report
Loan Limit Appeals Process Announced
Contrary to previous reports, FHA and FHFA will permit appeals for the 2010 limits. The 2010 limits will remain the same from the current limits at 125% of local area median home price up to $729,750 (with a floor for FHA of $271,050 and $417,000 for Freddie Mac and Fannie Mae). A full list of the limits is available at HUD.
If you wish to appeal your loan limit, and can demonstrate that sales prices are higher than the current limits, there is a set procedure, and time is short. All appeals must be made by December 21, 2009. Appeals will all be handled by the Santa Ana Homeownership Center. Full details are available in HUD's Mortgagee Letter 2009-50. This will be the only opportunity to appeal the 2010 limits.
Full List of 2010 Limits
HUD's Mortgagee Letter 2009-50
Megan Booth 202-383-1222, Jerome Nagy 202-383-1233
As we go forward, there will always be new laws passed in an attempt to keep the our country's housing industry viable for all, while protecting the consumer. Some will be of merit and those that will hurt the industry, the National Association of Realtors and the Government Affairs Committees around the US are watching and protecting our rights as homeowners in making representation on capital hill.
By having a strong voice on capital hill and educating our law makers to major concerns that would affect all of us in a negative way, NAR has been successful in defeating legislation that would be detrimental to all homeowners. NAR has been equally successful in lobbying for those reforms and programs that help keep the real estate industry healthy and protect consumer's most precious possession and asset...their home!
Realtor Insider DC News and Events Report
Loan Limit Appeals Process Announced
Contrary to previous reports, FHA and FHFA will permit appeals for the 2010 limits. The 2010 limits will remain the same from the current limits at 125% of local area median home price up to $729,750 (with a floor for FHA of $271,050 and $417,000 for Freddie Mac and Fannie Mae). A full list of the limits is available at HUD.
If you wish to appeal your loan limit, and can demonstrate that sales prices are higher than the current limits, there is a set procedure, and time is short. All appeals must be made by December 21, 2009. Appeals will all be handled by the Santa Ana Homeownership Center. Full details are available in HUD's Mortgagee Letter 2009-50. This will be the only opportunity to appeal the 2010 limits.
Full List of 2010 Limits
HUD's Mortgagee Letter 2009-50
Megan Booth 202-383-1222, Jerome Nagy 202-383-1233
Monday, November 30, 2009
Wahooo! Sales up 24%
According to a report from the Salt Lake Board of Realtors
Full story is available at the Salt Lake Tribune at: www.sltrib.com/business/ci_13851384 . Salt Lake Board of REALTORS Press Release available at slrealtors.com.
October Home Sales Climb Twenty-Four Percent
The Salt Lake Board of REALTORS stated sales of existing homes and condominiums climbed 24% in October. There were 1,061 homes/condos sold in October compared to 855 sales in October 2008. In a story, the Salt Lake Tribune quoted SLBR President Ryan Kirkham, and Board of Director member, DeAnna Dipo.Full story is available at the Salt Lake Tribune at: www.sltrib.com/business/ci_
Are You Prepared?
Hand in hand with buying your new home, another topic enters into reality. How do your fair in being prepared for an emergency? What if a power outage occurred during a storm and you were without electricity? Besides trying to eat up all the ice cream in your freezer, would you know what to do next?
An emergency can occur at anytime in your area. The extent of an emergency can range from those situations that affect only you and your family, which could include a home fire or a medical emergency, or loss of job. An emergency could also be a situation that affects your entire community like an earthquake or flood.
Here is a basic list of what you should know:
- Know how your local authorities will communicate during a disaster…where will you get information? Such means could be through local radio, TV, weather radio stations or channels or NOAA or local emergency non-profit organizations like the Red Cross.
- Know the difference between weather warnings and watches and what action should be taken in each situation.
- If and when a major disaster occurs... your community, as you know it, can change in an instant. You or your loved ones could be hurt and emergency response could be delayed.
- Know basic first aid. You or a member of your household should be trained in first aid and CPR and know how to use an automated external defibrillator (AED). Any training is useful in emergency situations.
- Know what is needed for basic food survival and start working on basic storage such as water, water pill purifiers, basic first aid kit, temporary means of lighting, heating (candles, propane lanterns, cooking stove (outside use only) , matches, lighters, etc), warm coats, blankets, enough basic food staples for a 3-months; beans, rice, sugar, honey, grains, etc. Dehydrated and packaged foods are great!
- Inform your family, friends and neighbors of what you have learned and encourage them to also be prepared.
You can get an Emergency Contact Card for All Household Members available at http://www.redcross.org/prepare/ECCard.pdf.
- Print out one card for each family member.
- Fill out the card and write all contact information for each household member; work school and mobile phone numbers.
- Keep the card with you so it is available in case of a disaster or other emergency
- Water supply (one-gallon for one person per day) store water in sealed, unbreakable containers. Identify storage date and replace every six months
- A supply of no-perishable packed or canned food
- Non-electric can opener
- A change of clothes, warm coat, rain gear and sturdy shoes, warm socks
- Blankets or sleeping bags
- A first aid kit and prescription medication
- An extra pair of glasses
- A battery powered radio
- Flashlight
- Plenty of extra batteries various sizes
- Credit cards and cash
- Extra set of car keys
- List of family physicians
- List of important family information; the style and serial number of medical devices such as pacemakers
- Special items for infants, elderly or disabled family members
- Mylar blanket
Wednesday, November 25, 2009
Thanksgiving...food for thought
Thanksgiving 8000 calorie poem
May your stuffing be tasty
May your turkey plump,
May your potatoes and gravy
have nary a lump.
May your yams be delicious
and your pies take the prize,
and may your Thanksgiving dinner
stay off your thighs!
-Unknown
An optimist is a person who starts a new diet on Thanksgiving Day.
--Irv Kupcine
Thanksgiving dinners take eighteen hours to prepare. They are consumed in twelve minutes. Half-times take twelve minutes. This is not coincidence.
--Erma Bombeck
Thanksgiving is so called because we are all so thankful that it only comes once a year.
--P. J. O'Rourke
May your stuffing be tasty
May your turkey plump,
May your potatoes and gravy
have nary a lump.
May your yams be delicious
and your pies take the prize,
and may your Thanksgiving dinner
stay off your thighs!
-Unknown
An optimist is a person who starts a new diet on Thanksgiving Day.
--Irv Kupcine
Thanksgiving dinners take eighteen hours to prepare. They are consumed in twelve minutes. Half-times take twelve minutes. This is not coincidence.
--Erma Bombeck
Thanksgiving is so called because we are all so thankful that it only comes once a year.
--P. J. O'Rourke
Lower Your Heating Costs
Lower Your Heating Costs
Lower Your Heating Costs This Winter by Weatherizing Your Home Winter is right around the corner. So there's no better time to prepare for the season by making energy-efficient upgrades.
Typical energy improvements include air sealing, insulation, ventilation systems or the installation of green appliances approved by Energy Star. Many upgrades are encouraged by state or federal programs that provide tax credits or rebates."These programs raise consumer awareness of the types of upgrades that are needed to make homes more energy-efficient," says Neil Parsons, a vice president at Mark of Excellence Remodeling in West Long Branch, N.J. "Weatherization" is a term that describes various improvements made to buildings and homes to optimize energy efficiency. According to the U.S. Department of Energy, on average, weatherization reduces heating bills by 32% and overall energy bills by about $350 per year at current prices.
Even though each state has different programs and incentives, all provide benefits to homeowners. "Homeowners notice their return on investment in their utility bills instantly after making energy upgrades," says Parsons. "The other benefits are the rebates, the increase in home value from making the improvements, increased performance and durability and helping out the planet by conserving energy for future generations."
To learn more about your state weatherization programs, visit www.dsireusa.org.
Winter Maintenance Tip
As the winter months bring colder temperatures, make sure your home is properly insulated. Caulking windows and doors will help you save energy and money. If you have exposed pipes, be sure to insulate those to prevent them from bursting as temperatures drop below freezing.Winter is also the prime time for illnesses such as colds and flu, so decrease indoor pollutants by cleaning and vacuuming dust from your vents.
Maintaining your thermostat is another important step to efficiency. Keep it set at the lowest possible temperature that will keep everyone comfortable (usually in the 68 to 72 degree range).
You may want to consider purchasing a programmable thermostat that will adjust your temps automatically. Visit my website if you would like to know what properties are selling for in your area.
Thursday, November 19, 2009
U.S. residents fight for the right to hang laundry
There is a growing number of people across America fighting for the right to dry their laundry outside against a rising tide of housing associations who appose the practice, despite its energy-saving green appeal.
The interest is represented by Project Laundry List, a group that argues people can save money and reduce carbon emissions by not using their electric or gas dryers, according to the group's executive director, Alexander Lee.
The adoption of clotheslines could significantly reduce the U.S. energy consumption, argues Lee, who said dryer use accounts for about 6 percent of U.S. residential electricity use.
Florida, Utah, Maine, Vermont, Colorado, and Hawaii have passed laws restricting the rights of local authorities to stop residents using clotheslines. Another five states are considering similar measures, said lee, 35, a former lawyer who quit to run the non-profit group.
'RIGHT TO HANG'
According to the article written by John Hurdle for Reuters, Lee's principal opponents are the housing associations such as condominiums and townhouse communities that are home to an estimated 60 million Americans, or about 20 percent of the population. About half of those organizations have 'no hanging' rules, Lee said, and enforce them with fines.
Carl Weiner, a lawyer for about 50 homeowners associations in suburban Philadelphia, said the no-hanging rules are usually included by the communities' developers along with regulations such as a ban on sheds or commercial vehicles. The no-hanging rules are an aesthetic issues, Weiner said.
"The consensus is most communities is that people don't want to see everybody else's laundry."
Eventually opposition to clotheslines may ease as more people understand it can save energy and reduce greenhouse gases.
"there is more awareness of impact on the environment, " he said. "I would not be surprised to see people questioning these restrictions."
To many in America, 'right to hang' is the embodiment of the American tradition of freedom.
The interest is represented by Project Laundry List, a group that argues people can save money and reduce carbon emissions by not using their electric or gas dryers, according to the group's executive director, Alexander Lee.
The adoption of clotheslines could significantly reduce the U.S. energy consumption, argues Lee, who said dryer use accounts for about 6 percent of U.S. residential electricity use.
Florida, Utah, Maine, Vermont, Colorado, and Hawaii have passed laws restricting the rights of local authorities to stop residents using clotheslines. Another five states are considering similar measures, said lee, 35, a former lawyer who quit to run the non-profit group.
'RIGHT TO HANG'
According to the article written by John Hurdle for Reuters, Lee's principal opponents are the housing associations such as condominiums and townhouse communities that are home to an estimated 60 million Americans, or about 20 percent of the population. About half of those organizations have 'no hanging' rules, Lee said, and enforce them with fines.
Carl Weiner, a lawyer for about 50 homeowners associations in suburban Philadelphia, said the no-hanging rules are usually included by the communities' developers along with regulations such as a ban on sheds or commercial vehicles. The no-hanging rules are an aesthetic issues, Weiner said.
"The consensus is most communities is that people don't want to see everybody else's laundry."
Eventually opposition to clotheslines may ease as more people understand it can save energy and reduce greenhouse gases.
"there is more awareness of impact on the environment, " he said. "I would not be surprised to see people questioning these restrictions."
To many in America, 'right to hang' is the embodiment of the American tradition of freedom.
Saturday, November 14, 2009
I'm not called the 24-7 Realtor for nothing
My daughter wrote on her Facebook Wall the following comment: "Loved ZAP Band on the CMA's They're awesome...Go Lady Antebellum..."
I wrote her back and said..."To me a CMA means Comparative Market Analysis..."
My daughter makes a comment back..."Funny..guess they don't call you the 24-7 Realtor for nothing!"
So my question: "Is Lady Antebellum the new Diva in Real Estate?"
I wrote her back and said..."To me a CMA means Comparative Market Analysis..."
My daughter makes a comment back..."Funny..guess they don't call you the 24-7 Realtor for nothing!"
So my question: "Is Lady Antebellum the new Diva in Real Estate?"
Thursday, November 12, 2009
Obama signs Tax Credit Extension and Expansion
In a report from the NAR, the votes are in 98- 0 and 403 - 12. Both the Senate and House have respectively passed legislation that includes an extension and expansion of the homebuyer tax credit. President Obama signed the legislation on Friday, November 6. Many parts of it take effect immediately.
As of the signing of the legislation, the income limits increase to $125,000 adjusted gross income on a single return and $225,000 on a joint return. In addition, the so-called "move-up" credit is also in effect as of November 6. Thus, individuals who have used a home as a principal residence for 5 consecutive years of the past 8 years will be eligible for a $6500 refundable tax credit for purchases completed between November 6, 2009 and April 30, 2010.
A summary of the new legislation is attached.
Homebuyer Tax Credit Summary
As of the signing of the legislation, the income limits increase to $125,000 adjusted gross income on a single return and $225,000 on a joint return. In addition, the so-called "move-up" credit is also in effect as of November 6. Thus, individuals who have used a home as a principal residence for 5 consecutive years of the past 8 years will be eligible for a $6500 refundable tax credit for purchases completed between November 6, 2009 and April 30, 2010.
A summary of the new legislation is attached.
Homebuyer Tax Credit Summary
Friday, November 6, 2009
Email from NAR to ShirLee
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Thursday, November 5, 2009
DON’T MISS OUT – THIS IS PROBABLY THE LAST TAX CREDIT EXTENSION
HOMEOWNERS IMPORTANT UPDATE
The House is scheduled to vote on the $6,500 bill TODAY!!!!!!
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.
WHAT THIS MEANS…
BUYERS who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000.
To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30, 2010.
"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.
The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Contact me today to get on board to find your home to buy and qualify for these great tax incentives before they expire. ShirLee McGarry® – 801.856.6594
Monday, November 2, 2009
Existing SF Homes on Wasatch Fron climed 4% 3rd qtr comapred....
According to this report from the Salt Lake Board of Realtors, existing single-family homes across the Wasatch Front climbed 4 percent in this year's third quarter compared to the same period a year ago. The increase was the first time in four years that home sales showed a year-over-year increase during a third quarter.
Nationally, the good news is that home prices have stabilized and even started to rise. According to the latest S&P/Case-Shiller Home Price Report, 17 of 20 major metropolitan areas showed house-price increases from July to August. Of the 20 cities tracked, only Charlotte, Cleveland and Las Vegas showed small decreases (Salt Lake City was not included in the report).
These developments, in part, led Moody’s/Economy.com economist Mark Zandi in a recent report to national home builders to declare that "the housing crash is history."
For home buyers, that means the bottom of the market has likely come and gone. And more personally, it means the worst is behind us.
Nationally, the good news is that home prices have stabilized and even started to rise. According to the latest S&P/Case-Shiller Home Price Report, 17 of 20 major metropolitan areas showed house-price increases from July to August. Of the 20 cities tracked, only Charlotte, Cleveland and Las Vegas showed small decreases (Salt Lake City was not included in the report).
These developments, in part, led Moody’s/Economy.com economist Mark Zandi in a recent report to national home builders to declare that "the housing crash is history."
For home buyers, that means the bottom of the market has likely come and gone. And more personally, it means the worst is behind us.
Sunday, November 1, 2009
Lower Your Heating Costs This Winter by Weatherizing Your Home
So there’s no better time to prepare for the season by making energy-efficient upgrades.
Typical energy improvements include air sealing, insulation, ventilation systems or the installation of green appliances approved by Energy Star. Many upgrades are encouraged by state or federal programs that provide tax credits or rebates.
"These programs raise consumer awareness of the types of upgrades that are needed to make homes more energy-efficient," says Neil Parsons, a vice president at Mark of Excellence Remodeling in West Long Branch, N.J. “Weatherization” is a term that describes various improvements made to buildings and homes to optimize energy efficiency. According to the U.S. Department of Energy, on average, weatherization reduces heating bills by 32% and overall energy bills by about $350 per year at current prices.
Even though each state has different programs and incentives, all provide benefits to homeowners. "Homeowners notice their return on investment in their utility bills instantly after making energy upgrades,” says Parsons. “The other benefits are the rebates, the increase in home value from making the improvements, increased performance and durability and helping out the planet by conserving energy for future generations.”
To learn more about your state weatherization programs, visit www.dsireusa.org.
Typical energy improvements include air sealing, insulation, ventilation systems or the installation of green appliances approved by Energy Star. Many upgrades are encouraged by state or federal programs that provide tax credits or rebates.
"These programs raise consumer awareness of the types of upgrades that are needed to make homes more energy-efficient," says Neil Parsons, a vice president at Mark of Excellence Remodeling in West Long Branch, N.J. “Weatherization” is a term that describes various improvements made to buildings and homes to optimize energy efficiency. According to the U.S. Department of Energy, on average, weatherization reduces heating bills by 32% and overall energy bills by about $350 per year at current prices.
Even though each state has different programs and incentives, all provide benefits to homeowners. "Homeowners notice their return on investment in their utility bills instantly after making energy upgrades,” says Parsons. “The other benefits are the rebates, the increase in home value from making the improvements, increased performance and durability and helping out the planet by conserving energy for future generations.”
To learn more about your state weatherization programs, visit www.dsireusa.org.
Wednesday, October 28, 2009
So Far So Good...tax shelters on your home
Being a home owner, your actual shelter, IS YOUR BEST TAX SHELTER. As soon as you buy your home your tax-cutting opportunities start and continue until you sell it.
Your deductions include all or part of your mortgage interests, the points you paid to get the loan, interest on certain home equity loans, and your annual property tax payments. These write-offs are helpful in reducing your tax bill each filing season.
Another great thing is there is the profit on your home’s sale. So far the IRS can’t touch that money!
According to Mark Luscome, principal federal tax analyst at CCH in Riverwoods, Ill., who is a provider of tax information and services says, "The biggest thing in real estate that would apply to most people is the primary residence sale exclusion."
This tax code provision gives up to $250,000 in sale profit for a single taxpayer, twice that for a married couple filing a joint return, is not taxed. "If you sell before your gain gets to that point, you can avoid ever having to pay tax on the residence," says Luscombe.
The beauty of this home-related tax shelter is that it applies to every principal residence you ever own as long as you meet the IRS rules. The key requirement is that you live in the home two of the five years before you sell.
According to Bod D. Scharin, senior tax analyst from the Tax & Accounting business of Thomson Reuters in New York City, "There are instances where people will buy a fixer-upper and live there for two years while fixing it up and then sell it at a profit. And though a lot of that profit can be attributable to their sweat equity, they still qualify for home sale exclusion,"
Your deductions include all or part of your mortgage interests, the points you paid to get the loan, interest on certain home equity loans, and your annual property tax payments. These write-offs are helpful in reducing your tax bill each filing season.
Another great thing is there is the profit on your home’s sale. So far the IRS can’t touch that money!
According to Mark Luscome, principal federal tax analyst at CCH in Riverwoods, Ill., who is a provider of tax information and services says, "The biggest thing in real estate that would apply to most people is the primary residence sale exclusion."
This tax code provision gives up to $250,000 in sale profit for a single taxpayer, twice that for a married couple filing a joint return, is not taxed. "If you sell before your gain gets to that point, you can avoid ever having to pay tax on the residence," says Luscombe.
The beauty of this home-related tax shelter is that it applies to every principal residence you ever own as long as you meet the IRS rules. The key requirement is that you live in the home two of the five years before you sell.
According to Bod D. Scharin, senior tax analyst from the Tax & Accounting business of Thomson Reuters in New York City, "There are instances where people will buy a fixer-upper and live there for two years while fixing it up and then sell it at a profit. And though a lot of that profit can be attributable to their sweat equity, they still qualify for home sale exclusion,"
Saturday, October 24, 2009
8 home improvements for fall
Here are 8 home improvement from expert Paul F. Ryan, host of DIY Network’s Weekend Handyman, for his checklist of cost-efficient home fixes to make before the cold weather hits.
1. Check the heat. No matter what kind of system your home uses (furnace, boiler, etc.), have it inspected annually by a professional so you don’t encounter problems later in the season when you need it most.
2. Reverse your fans. Ceiling fans blow air downward in the summer to help keep things cool. For the opposite effect, Ryan suggests reversing the fan so the current blows up toward the ceiling. “It circulates air and heating much better,” he says.
3. Check for drafts. “One of the most common places people lose warm air is through their outlets and switch plates,” Ryan says. “There are little gaskets you can buy for almost nothing that go behind the plate to seal air from coming in.”
4. Check the roof. “Most problems with a roof are going to show up in the first few years after a roof is installed,” says Ryan, so it’s especially important to have the roof checked if you’ve just moved in or if you’ve endured a stormy summer. And if you’re worried about cost, don’t be. “Typically you can get a roofing company to come out and do roof inspections for free.”
5. Inspect the fireplace. Cleanings and inspections of your fireplace and chimney should be done annually to help ensure safety and efficiency, but if you’re burning a softer wood, such as pine or cedar, have your fireplace inspected twice a year.
6. Drain spigots. Remember to put away all outdoor garden hoses. Also, shut off spigot valves from inside to drain any remaining water and prevent freezing.
7. Seal windows and doors. Cold air currents strain your heating system and cost you money. Try Ryan’s trick for finding drafty doors and windows: Use a stick of incense and walk around to see where the smoke moves—indicating that air is flowing indoors. According to Ryan, “That will tell you which windows and doors you need to seal instead of hiring someone.”
8. Clean out the gutters. Now is the time to tackle the gutters. But Ryan advises to “just make sure you’re comfortable on a ladder. It’s one of the places that people really get injured.” If heights aren’t your thing, consider calling a professional.
Need another incentive to get proactive before winter? Energy-efficient windows, doors, insulation, heating systems and roofing can qualify for a tax credit if installed before December 31.
Thursday, October 22, 2009
Extension of Tax Credit still up in the...
A report from the NAR disclosed that the Federal Tax Report Focus on Extending Tax Credit Intensifies While no official legislative action took place on the tax credit during the preceding week, the buzz generated increased measurably. REALTORS® have generated almost 500,000 letters to congressional offices via the REALTOR® Action Center.
NAR's Call for Action to NAR members has achieved a higher response rate than any other previous Call for Action, underscoring the importance of the credit to REALTORS® and consumers alike. Several House members have introduced bills extending the credit in direct response to the communications from REALTORS®.
Senate Majority Leader Harry Reid (D-NV) continues to express his desire to move the extension at the first opportunity. As yet, however, there is not a clear procedural path to enactment, nor is there any agreement on how (or whether) the provision will be "paid for." As yet, no revenue source for extending the credit has been identified. The "cost" is about $1 Billion for each month of extension.
NAR's Call for Action to NAR members has achieved a higher response rate than any other previous Call for Action, underscoring the importance of the credit to REALTORS® and consumers alike. Several House members have introduced bills extending the credit in direct response to the communications from REALTORS®.
Senate Majority Leader Harry Reid (D-NV) continues to express his desire to move the extension at the first opportunity. As yet, however, there is not a clear procedural path to enactment, nor is there any agreement on how (or whether) the provision will be "paid for." As yet, no revenue source for extending the credit has been identified. The "cost" is about $1 Billion for each month of extension.
Century 21 honored with the OMMA Award...
Century 21 Real Estate Honored for Outstanding Achievement in Search Engine Marketing and Innovative TechnologyPrint Article RISMEDIA, October 6, 2009
Century 21 Real Estate LLC, the franchisor of one of the world's largest residential real estate sales organizations, announces its website, century21.com, was honored with an Online Advertising Creativity Award from the OMMA Awards, and a WebAward in real estate excellence from the Web Marketing Association.
"These awards underscore the effectiveness of our interactive marketing effort and our commitment to providing an enhanced online experience for our consumer," said Bev Thorne, senior vice president of marketing, Century 21 Real Estate LLC. "Our digital strategy continues to drive results and deliver value to Century 21 System members. Since last year, we have driven 65 percent more leads to our franchisees, while decreasing our cost per lead by 50 percent."
The OMMA Award, which reviews submissions across all industries, honored Century 21 Real Estate for its search engine marketing work with MediaCom Search, a division of GroupM Search. Century 21 Real Estate was honored for having the best search marketing for paid search. Century 21 and MediaCom Search also received a Stevie Award this for this same campaign in July.
Century 21 Real Estate's receipt of a 2009 WebAward recognizes innovative technology offerings and an enhanced customer experience via century21.com. For more information, visit http://www.century21.com/. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Century 21 Real Estate LLC, the franchisor of one of the world's largest residential real estate sales organizations, announces its website, century21.com, was honored with an Online Advertising Creativity Award from the OMMA Awards, and a WebAward in real estate excellence from the Web Marketing Association.
"These awards underscore the effectiveness of our interactive marketing effort and our commitment to providing an enhanced online experience for our consumer," said Bev Thorne, senior vice president of marketing, Century 21 Real Estate LLC. "Our digital strategy continues to drive results and deliver value to Century 21 System members. Since last year, we have driven 65 percent more leads to our franchisees, while decreasing our cost per lead by 50 percent."
The OMMA Award, which reviews submissions across all industries, honored Century 21 Real Estate for its search engine marketing work with MediaCom Search, a division of GroupM Search. Century 21 Real Estate was honored for having the best search marketing for paid search. Century 21 and MediaCom Search also received a Stevie Award this for this same campaign in July.
Century 21 Real Estate's receipt of a 2009 WebAward recognizes innovative technology offerings and an enhanced customer experience via century21.com. For more information, visit http://www.century21.com/. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Sunday, October 18, 2009
FHA May Further Delay Implementation of New Condominium Rules
FHA May Further Delay Implementation of New Condominium Rules
The new condominium approval process under Mortgagee Letter 2009-19 was to be effective for all case numbers assigned on or after October 1, 2009. While the new effective date is for case numbers assigned on or after November 2, 2009, NAR understands that the new effective date may be delayed even further.
The site condo and manufactured housing condo project changes that have already taken effect are not affected by this delay. However, all other rules of the condominium program remain in effect. For example, lenders are permitted to offer spot loans until the new condominium rules go into effect. On July 31, 2009, NAR President Charles McMillan sent a letter to FHA Commissioner David Stevens recommending enhancements to the new condominium rule.
Mr. McMillan also discussed NAR's recommendations at a meeting with the Commissioner on September 8, 2009. NAR is calling for:
1) a reduction in the owner-occupancy requirement,
2) eliminating or increasing the FHA concentration limit,
3) reducing the pre-sale requirement, and
4) clarification of the reserve study requirement.
NAR has recently contacted FHA asking the agency to consider allowing spot loans under the new condominium rules when they go into effect.
NAR Letter to FHA on New Condominium Rule EnhancementsMortgagee Letter 2009-19: Condominium Approval Process – Single Family Housing
Jerome Nagy 202-383-1233, Megan Booth 202-383-1222
The new condominium approval process under Mortgagee Letter 2009-19 was to be effective for all case numbers assigned on or after October 1, 2009. While the new effective date is for case numbers assigned on or after November 2, 2009, NAR understands that the new effective date may be delayed even further.
The site condo and manufactured housing condo project changes that have already taken effect are not affected by this delay. However, all other rules of the condominium program remain in effect. For example, lenders are permitted to offer spot loans until the new condominium rules go into effect. On July 31, 2009, NAR President Charles McMillan sent a letter to FHA Commissioner David Stevens recommending enhancements to the new condominium rule.
Mr. McMillan also discussed NAR's recommendations at a meeting with the Commissioner on September 8, 2009. NAR is calling for:
1) a reduction in the owner-occupancy requirement,
2) eliminating or increasing the FHA concentration limit,
3) reducing the pre-sale requirement, and
4) clarification of the reserve study requirement.
NAR has recently contacted FHA asking the agency to consider allowing spot loans under the new condominium rules when they go into effect.
NAR Letter to FHA on New Condominium Rule EnhancementsMortgagee Letter 2009-19: Condominium Approval Process – Single Family Housing
Jerome Nagy 202-383-1233, Megan Booth 202-383-1222
8000 tax credit to be extended?
Rangel, Pelosi Comment about Tax Credit Extension
At a press conference on October 8, House Speaker Pelosi (D-CA) responded favorably when asked about the likelihood of extending the first-time homebuyer tax credit. When asked about the possibility of further housing legislation, she responded "Yes, there is under consideration whether we extend the first time homeowners credit. And the question is, would that be just first time homeowners or would you open it up to other purchasers of homes?" She shed no further light on whether the credit would be expanded, but did note that the cost of an expansion would be the major consideration in the decision process. When asked for comment, Bloomberg Wire Services reports that Chairman Rangel (D-NY) said, "There's no question that I think it should be extended; for how long, we should discuss." As yet, no formal action has been announced.
Sunday, October 11, 2009
Top 5 Cities Where Americans Pay Most to Live
Here are the Top 5 Cities Where Americans Pay Most to Live
1. San Jose, Calif.San Jose-Sunnyvale-Santa Clara, Calif. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,828
2. Bridgeport, Conn.BridgeportStamford-Norwalk, Ct. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,793
3. Oxnard, Calif.Oxnard-Thousand Oaks-Ventura, Calf. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,780
4. Washington, D.C.Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,706
5. San Francisco, Calif.San Francisco-Oakland-Fremont, Calif. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,660
1. San Jose, Calif.San Jose-Sunnyvale-Santa Clara, Calif. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,828
2. Bridgeport, Conn.BridgeportStamford-Norwalk, Ct. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,793
3. Oxnard, Calif.Oxnard-Thousand Oaks-Ventura, Calf. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,780
4. Washington, D.C.Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,706
5. San Francisco, Calif.San Francisco-Oakland-Fremont, Calif. Metropolitan Statistical AreaMedian Monthly Housing Costs: $1,660
Friday, October 9, 2009
U.S. Mortgage Backer May Need Bailout
Friday, October 9, 2009 In an article by David Streitfield and Louise Story, Washington policy makers are worrying that another government mortgage giant could be the next housing domino. Problems at the Federal Housing Administration, which guarantees mortgages with low down payments, are becoming so acute that some experts warn the agency might need a federal bailout.
More from NYTimes.com:• Digging Deeper Into Merrill's Failed Pay Plan• Debt-Market Paralysis Deepens Credit Drought• Support Is Building for a Tax Credit to Help Hiring
Running questions about the F.H.A.’s future — underscored by interviews with policy makers, analysts and home buyers — came to the fore on Thursday on Capitol Hill. In testimony before a House subcommittee, the F.H.A. commissioner, David H. Stevens, assured lawmakers that his agency would not need a bailout and that it was managing its risks.
But he acknowledged that some 20 percent of F.H.A. loans insured last year — and as many as 24 percent of those from 2007 — faced serious problems including foreclosure, offering a preview of a forthcoming audit of the agency’s finances.
“Let me simply state at the outset that based on current projections, absent any catastrophic home price decline, F.H.A. will not need to ask Congress and the American taxpayer for extraordinary assistance — we will not need a bailout,” Mr. Stevens said in his testimony.
But to its critics, the F.H.A. looks like another Fannie Mae. The hearings on Thursday came on the same day that the federal agency charged with overseeing Fannie Mae and Freddie Mac provided a somber assessment of those giants’ health. In the year since the government stepped in to rescue them, the companies have taken $96 billion from the Treasury, and may need more.
More from Yahoo! Finance: • Million-Dollar Businesses You've Never Heard Of• How Much House Can You Afford Now?• Old Banks, a Slew of New Lending Tricks
Visit the Loans Center
Since the bottom fell out of the mortgage market, the F.H.A. has assumed a crucial role in the nation’s housing market. Created in 1934 to help lower-income and first-time buyers purchase homes, the agency now insures roughly 5.4 million single-family home mortgages, with a combined value of $675 billion.
In addition, these loans are bundled into mortgage-backed securities and guaranteed through the Government National Mortgage Association, known as Ginnie Mae. That means the taxpayer is responsible for paying investors who own Ginnie Mae bonds when F.H.A.-backed mortgages hit trouble.
“It appears destined for a taxpayer bailout in the next 24 to 36 months,” Edward Pinto, a former Fannie Mae executive, said in testimony prepared for the hearing. Mr. Pinto, who was the chief credit officer from 1987 to 1989 for Fannie Mae, went further than most housing analysts and predicted that F.H.A. losses would more than wipe out the agency’s $30 billion of cash reserves.
The issue has polarized Congress. Republicans, who led efforts to rein in Fannie Mae and Freddie Mac before those companies ran into trouble, are now seeking to bridle the F.H.A. Many Democrats insist the F.H.A. is playing a vital role in the housing market, which is only just starting to stabilize.
“F.H.A. has stepped into the void left by the private market,” Representative Maxine Waters, Democrat from California, said at the hearing. “Let’s be clear; without F.H.A., there would be no mortgage market right now.”
That was the case for Bernadine Shimon. Like many Americans, Ms. Shimon has recently been through some rough times. She lost a house to foreclosure, declared bankruptcy, got divorced and is now a single mother, teaching high school English in a Denver suburb.
She wanted a house but no lender would touch her. The Federal Housing Administration was more obliging. With the F.H.A. insuring her mortgage, Ms. Shimon was able to buy a $134,000 fixer-upper in August.
“The government gave me another chance,” she said.
The government is giving as many people as it possibly can the chance to buy a house or, if they are in financial difficulty, refinance it. The F.H.A. is insuring about 6,000 loans a day, four times the amount in 2006. Its portfolio is growing so fast that even F.H.A. backers express amazement.
For decades it was an article of faith that helping people of limited means like Ms. Shimon get a house was good for the new owner, good for the neighborhood and good for American capitalism. Then came the housing bust, which demonstrated that when lenders allowed people to buy houses they ultimately could not afford, it hurt the parties — while putting the economy itself in a tailspin.
In the aftermath of the crash, there is wide divergence on how easy, or how hard, it should be to become a homeowner. Skittish lenders are asking for 20 percent down, which few prospective borrowers have to spare. As a result, private lending has dwindled. The government has stepped into the breach, facilitating loans with down payments as low as 3.5 percent and offering other incentives to stabilize the market. Real estate agents in some hard-hit areas say every single one of their clients is using the F.H.A.
“They’re counting their pennies, scraping up that 3.5 percent,” Bonni Malone of Prudential Americana in Las Vegas said. “Mostly they’re buying foreclosed homes from banks, although I had one client who bought from a guy that was dying. It’s turning around the market.”
While the government’s actions have helped avert full-scale economic disaster, there is growing concern that it might have doled out its favors with too generous a hand.
Many of the loans the F.H.A. insured in 2007 and last year are now turning delinquent, agency officials acknowledge. The loans made in those two years are performing “far worse” than newer loans, dragging down the whole portfolio, Mr. Stevens of the F.H.A. said in an interview.
The number of F.H.A. mortgage holders in default is 410,916, up 76 percent from a year ago, when 232,864 were in default, according to agency data.
Despite the agency’s attempt to outrun its fate by insuring ever-larger amounts of new loans to such borrowers as Ms. Shimon — the current rate is over a billion dollars a day — 7.77 percent of the portfolio is in default, up from 5.6 percent a year ago. Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee, said in an interview that the defaults were, in essence, worth it.
“I don’t think it’s a bad thing that the bad loans occurred,” he said. “It was an effort to keep prices from falling too fast. That’s a policy.”
The troubled loans are nevertheless weighing on the agency’s capital reserve fund, which has fallen to below its Congressionally mandated minimum of 2 percent, from over 6 percent two years ago.
The optimism expressed by Mr. Stevens, the F.H.A. commissioner, places him at odds not only with some outside experts but with Kenneth Donohue, the inspector general of the Housing and Urban Development Department, who is also F.H.A.’s watchdog. Mr. Donohue said the drop in reserves was “a flashing red light” that the agency was not taking seriously enough.
“It might be we’ll get ourselves out of this and that everything will be fine, but I don’t paint that rosy a picture,” Mr. Donohue said. “They’re banking on the fact that the economy will continue to improve, that the housing market will begin to sustain itself.”
He noted that if private lenders had raised their down payment requirements in the last two years, it raised the question, “what does the F.H.A. think it is doing by asking only 3.5 percent?”
Any more than that and Ms. Shimon, 45, would still be a renter. As it was, she cashed in her retirement savings account to come up with the necessary funds. She did not have enough to spare for closing costs, so her mortgage broker arranged a deal where the charges were wrapped into the loan at the cost of a higher interest rate. She cried when the deal was done.
The house was empty and trashed. Slowly, she is trying to bring it back to life. She spent the first few weeks picking up garbage in the backyard.
Is Ms. Shimon a good bet? Even she has no easy answer. Her mortgage payment, $1,100, is half of what she takes home every month. It is not easy to make ends meet. Teachers can get laid off like everyone else.
“The government,” she said, “is doing what it needed to do — taking a risk on people.”
Chaz Fullenkamp, an automotive technician in Columbus, Ohio, got an F.H.A. loan even though he was living on the financial edge. “If I got unemployed, I’d be wiped out in a month or two,” he says. Thanks to the F.H.A., however, he is better off than he used to be.
Mr. Fullenkamp used F.H.A. insurance to buy a house this spring for $179,000. The eager seller paid the closing costs and also gave Mr. Fullenkamp $2,500 in cash. He immediately applied for the $8,000 tax rebate. Even taking his down payment into account, he came out ahead.
“I knew in my heart I could not really afford the house, but they gave it to me anyway,” said Mr. Fullenkamp, 22. “I thought, ‘Wow, I’m surprised I pulled that off.’ ”
As the number of loans has soared, random quality control checks have decreased sharply, F.H.A. staff members say. Mr. Donohue, the inspector general, cited numerous examples of organized fraud in testimony to Congress earlier this year.
“They need to stop taking bad loans in the door,” he said in an interview. “They’re taking on all this volume, they have to have very active underwriting standards.”
Jack Healy contributed reporting from New York.
More from NYTimes.com:• Digging Deeper Into Merrill's Failed Pay Plan• Debt-Market Paralysis Deepens Credit Drought• Support Is Building for a Tax Credit to Help Hiring
Running questions about the F.H.A.’s future — underscored by interviews with policy makers, analysts and home buyers — came to the fore on Thursday on Capitol Hill. In testimony before a House subcommittee, the F.H.A. commissioner, David H. Stevens, assured lawmakers that his agency would not need a bailout and that it was managing its risks.
But he acknowledged that some 20 percent of F.H.A. loans insured last year — and as many as 24 percent of those from 2007 — faced serious problems including foreclosure, offering a preview of a forthcoming audit of the agency’s finances.
“Let me simply state at the outset that based on current projections, absent any catastrophic home price decline, F.H.A. will not need to ask Congress and the American taxpayer for extraordinary assistance — we will not need a bailout,” Mr. Stevens said in his testimony.
But to its critics, the F.H.A. looks like another Fannie Mae. The hearings on Thursday came on the same day that the federal agency charged with overseeing Fannie Mae and Freddie Mac provided a somber assessment of those giants’ health. In the year since the government stepped in to rescue them, the companies have taken $96 billion from the Treasury, and may need more.
More from Yahoo! Finance: • Million-Dollar Businesses You've Never Heard Of• How Much House Can You Afford Now?• Old Banks, a Slew of New Lending Tricks
Visit the Loans Center
Since the bottom fell out of the mortgage market, the F.H.A. has assumed a crucial role in the nation’s housing market. Created in 1934 to help lower-income and first-time buyers purchase homes, the agency now insures roughly 5.4 million single-family home mortgages, with a combined value of $675 billion.
In addition, these loans are bundled into mortgage-backed securities and guaranteed through the Government National Mortgage Association, known as Ginnie Mae. That means the taxpayer is responsible for paying investors who own Ginnie Mae bonds when F.H.A.-backed mortgages hit trouble.
“It appears destined for a taxpayer bailout in the next 24 to 36 months,” Edward Pinto, a former Fannie Mae executive, said in testimony prepared for the hearing. Mr. Pinto, who was the chief credit officer from 1987 to 1989 for Fannie Mae, went further than most housing analysts and predicted that F.H.A. losses would more than wipe out the agency’s $30 billion of cash reserves.
The issue has polarized Congress. Republicans, who led efforts to rein in Fannie Mae and Freddie Mac before those companies ran into trouble, are now seeking to bridle the F.H.A. Many Democrats insist the F.H.A. is playing a vital role in the housing market, which is only just starting to stabilize.
“F.H.A. has stepped into the void left by the private market,” Representative Maxine Waters, Democrat from California, said at the hearing. “Let’s be clear; without F.H.A., there would be no mortgage market right now.”
That was the case for Bernadine Shimon. Like many Americans, Ms. Shimon has recently been through some rough times. She lost a house to foreclosure, declared bankruptcy, got divorced and is now a single mother, teaching high school English in a Denver suburb.
She wanted a house but no lender would touch her. The Federal Housing Administration was more obliging. With the F.H.A. insuring her mortgage, Ms. Shimon was able to buy a $134,000 fixer-upper in August.
“The government gave me another chance,” she said.
The government is giving as many people as it possibly can the chance to buy a house or, if they are in financial difficulty, refinance it. The F.H.A. is insuring about 6,000 loans a day, four times the amount in 2006. Its portfolio is growing so fast that even F.H.A. backers express amazement.
For decades it was an article of faith that helping people of limited means like Ms. Shimon get a house was good for the new owner, good for the neighborhood and good for American capitalism. Then came the housing bust, which demonstrated that when lenders allowed people to buy houses they ultimately could not afford, it hurt the parties — while putting the economy itself in a tailspin.
In the aftermath of the crash, there is wide divergence on how easy, or how hard, it should be to become a homeowner. Skittish lenders are asking for 20 percent down, which few prospective borrowers have to spare. As a result, private lending has dwindled. The government has stepped into the breach, facilitating loans with down payments as low as 3.5 percent and offering other incentives to stabilize the market. Real estate agents in some hard-hit areas say every single one of their clients is using the F.H.A.
“They’re counting their pennies, scraping up that 3.5 percent,” Bonni Malone of Prudential Americana in Las Vegas said. “Mostly they’re buying foreclosed homes from banks, although I had one client who bought from a guy that was dying. It’s turning around the market.”
While the government’s actions have helped avert full-scale economic disaster, there is growing concern that it might have doled out its favors with too generous a hand.
Many of the loans the F.H.A. insured in 2007 and last year are now turning delinquent, agency officials acknowledge. The loans made in those two years are performing “far worse” than newer loans, dragging down the whole portfolio, Mr. Stevens of the F.H.A. said in an interview.
The number of F.H.A. mortgage holders in default is 410,916, up 76 percent from a year ago, when 232,864 were in default, according to agency data.
Despite the agency’s attempt to outrun its fate by insuring ever-larger amounts of new loans to such borrowers as Ms. Shimon — the current rate is over a billion dollars a day — 7.77 percent of the portfolio is in default, up from 5.6 percent a year ago. Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee, said in an interview that the defaults were, in essence, worth it.
“I don’t think it’s a bad thing that the bad loans occurred,” he said. “It was an effort to keep prices from falling too fast. That’s a policy.”
The troubled loans are nevertheless weighing on the agency’s capital reserve fund, which has fallen to below its Congressionally mandated minimum of 2 percent, from over 6 percent two years ago.
The optimism expressed by Mr. Stevens, the F.H.A. commissioner, places him at odds not only with some outside experts but with Kenneth Donohue, the inspector general of the Housing and Urban Development Department, who is also F.H.A.’s watchdog. Mr. Donohue said the drop in reserves was “a flashing red light” that the agency was not taking seriously enough.
“It might be we’ll get ourselves out of this and that everything will be fine, but I don’t paint that rosy a picture,” Mr. Donohue said. “They’re banking on the fact that the economy will continue to improve, that the housing market will begin to sustain itself.”
He noted that if private lenders had raised their down payment requirements in the last two years, it raised the question, “what does the F.H.A. think it is doing by asking only 3.5 percent?”
Any more than that and Ms. Shimon, 45, would still be a renter. As it was, she cashed in her retirement savings account to come up with the necessary funds. She did not have enough to spare for closing costs, so her mortgage broker arranged a deal where the charges were wrapped into the loan at the cost of a higher interest rate. She cried when the deal was done.
The house was empty and trashed. Slowly, she is trying to bring it back to life. She spent the first few weeks picking up garbage in the backyard.
Is Ms. Shimon a good bet? Even she has no easy answer. Her mortgage payment, $1,100, is half of what she takes home every month. It is not easy to make ends meet. Teachers can get laid off like everyone else.
“The government,” she said, “is doing what it needed to do — taking a risk on people.”
Chaz Fullenkamp, an automotive technician in Columbus, Ohio, got an F.H.A. loan even though he was living on the financial edge. “If I got unemployed, I’d be wiped out in a month or two,” he says. Thanks to the F.H.A., however, he is better off than he used to be.
Mr. Fullenkamp used F.H.A. insurance to buy a house this spring for $179,000. The eager seller paid the closing costs and also gave Mr. Fullenkamp $2,500 in cash. He immediately applied for the $8,000 tax rebate. Even taking his down payment into account, he came out ahead.
“I knew in my heart I could not really afford the house, but they gave it to me anyway,” said Mr. Fullenkamp, 22. “I thought, ‘Wow, I’m surprised I pulled that off.’ ”
As the number of loans has soared, random quality control checks have decreased sharply, F.H.A. staff members say. Mr. Donohue, the inspector general, cited numerous examples of organized fraud in testimony to Congress earlier this year.
“They need to stop taking bad loans in the door,” he said in an interview. “They’re taking on all this volume, they have to have very active underwriting standards.”
Jack Healy contributed reporting from New York.
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