The HAFA (Home Affordable Foreclosure Alternatives)Program is coming and will take effect on April 5, 2010. It is essential that you know why it is not a good program and why, if you are a seller, you should throw that agreement in the trash! (this is the PG version of what I really feel you should do with it!!)

Before I go on, you need to know I have spent many hours in webinars and seminars which were ran by Wells Fargo, Bank of America, Freddie Mac and a few nationally recognized attorneys who specialize in short sales on top of plenty of time reading the guidelines and contract myself.

Most of what I will include below is my professional opinion based on the information given to me by the above parties.  I feel it is important to share the information I learned to help you make a more informed decision. Ultimately, you need to take the guidelines and contracts (they call it the Supplemental Directive 09-09), which I've included below, to your own attorney (not just any attorney but one who specializes in short sales) and make an informed decision.  Click here for a free list of questions you'll want to ask to be sure any professional you are seeking advice from actually has significant short sale experience.

Supplemental Directive 09-09 - First of all before I begin it is first important to point out how you know if you are even eligible for the program.  You will need to meet the following criteria:

1. Your loan must be a non GSE loan - Loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (click on either of the previous links to find out if your loan is a Fannie or Freddie loan)

2. The servicer of your loan (who you make your payments to) must have executed a servicer participation agreement and related documents (SPA) withFannie Mae in its capacity as financial agent for the United States (as designated by Treasury) to participate in HAMP on or before December 31, 2009  

3.  A loan must be HAMP eligible and meet the other requirements to be eligible for incentive compensation under HAFA

4. Servicers must evaluate a borrower for a HAMP modification prior to any consideration being given to HAFA options

5.  Borrowers that meet the eligibility criteria for HAMP but who are not offered a Trial Period Plan, do not successfully complete a Trial Period Plan, or default on a HAMP  modification should first be considered for other loan modification or retention programs offered by the servicer prior to being evaluated for HAFA

6. The property is the borrower’s principal residence - no second homes or investment properties

7. The mortgage loan is a first lien mortgage originated on or before January 1, 2009 - if you have a second or third mortgage or any other lien, they are not eligible.   You will be responsible for getting any additional liens released on your own.

8. The mortgage is delinquent or default is reasonably foreseeable

9. The current unpaid principal balance is equal to or less than $729,750 - no jumbo loans

10. The borrower’s total monthly mortgage payment (as defined in Supplemental Directive 09-01) exceeds 31 percent of the borrower’s gross income

Now on to the Highlights, der, uh, I mean Lowlights:

 

1. Servicers, in accordance with investor guidelines, determine if a short sale or DIL (deed in lieu of foreclosure) is in the best interest of the investor, guarantor and/or mortgage insurer.  It matters not what is in your sellers best interest but what is in the best interest of the investor/lender/insurance companies!

 

2.  By signing the SSA, you are agreeing not only to a short sale but also to a deed‐in‐lieu of foreclosure if a short sale is not successful -  This is a huge gotcha and the               biggest reason why I would not sign or enter into a HAFA agreement!

 

3. A fixed termination date of not less than 120 days, after which, the servicer may or may not agree to extend it for up to a year.  -  On the surface this does not seem all that bad unitl you read #4 below.

 

4. When the seller signs the SSA (HAFA short sale agreement) they are agreeing up front to a DIL (see #2 above).  The investor is obligated to accept a DIL in accordance         with the terms of the SSA if the term of the SSA expires without resulting in a sale of the property -  This means come day 120 the lender can exercise and enforce a DIL because the seller already agreed to it in writing.  For those of you who don't know, a DIL is nothing more than a volunteered foreclosure.  It will show on your credit as a foreclosure.  This is not a benefit to you but it is to the lender because they get the property back in their possession faster thereby saving them money compared to making them go through a judicial foreclosure process.

 

5.  Servicers may amend the terms of the SSA in accordance with investor requirements. - Talk about a sentence that opens the flood gates for lenders to do what they     please!

 

6.   Sellers will have to contiue to pay a portion of their mortgage payment. They will be required to pay, during the term of the SSA, an amount that must not exceed 31% of the borrower’s gross monthly income. - Sellers who miss payments will be in default of the agreement and a DIL can be immediately pursued and enforced!

 

7.  The offer price will be dictated by the lender using the 90 day "as-is" BPO value. - The servicer does not have to agree to additional valuation methods. - Sellers better      pray they get an experienced BPO agent because if they over value your property and it does not sell within 120 days because it is overpriced,  you just gave your property to the bank (see DIL #2 and #4 above) 

 

Don't fret though as there is ONE good thing about HAFA.  You can opt out of this program at any time!  If the borrower fails to contact the servicer within the timeframe or at any time indicates that he or she is not interested in these options, the servicer has no further obligation to extend a HAFA offer.   This means you can elect to perform what is now being referred to as a "proprietary" or "classic" short sale (or a non HAFA short sale).   

 

If you have help from a qualified experienced short sale professional, they will know all you have to do is put in your short sale package cover letter the words, "THIS IS TO BE A NON HAFA SHORT SALE."  They will also have many ways to help you avoid having a foreclosure on your record, avoid agreeing to a DIL, avoid agreeing to deficiency judgements and avoid signing promissory notes.   

 

Bottom line, HAFA is great for the lender/servicers but not so much for you, the homeowner/seller.  I predict HAFA will be another massive failure just as HAMP has been.  This program will be a good fit for very few homeowners, if any at all.

 

The sooner you realize lenders control our politicians and they both falsely act as if their programs will work better for consumers while in reality they have figured out, in advance, how they will ultimately improve their own position and bottom line, the better off you will be!  KNOW YOUR RIGHTS!

 

 

Disclaimer: While attempts have been made to verify information provided therein, the author does not assume any responsibility for errors, omissions, or contradictory information contained in this document. This document is not intended as legal, investment or accounting advice. The reader of this blog assumes all responsibility for the use of these materials and information. 

 

 

 

                                                                      

DON'T WAIT.  CALL YOUR REALTOR NOW!

It had to happen.  The New York Times news alert headline says Federal Reserve Raises Interest Rate Charged to Banks, In First Move Since 2008.

Is it a big deal?  That remains to be seen.  If you locked your loan yesterday, be happy.  The rate you got isn't available today.

An Example From History
(You can't call it a lesson unless something has been learned...)

To put things in perspective, when Jimmy Carter defeated Gerald Ford in 1976, the discount rate stood at 5.25%.  Two years prior, under Nixon, it had been higher, at 8%.  Commodity prices were through the roof.  (Google "oil prices 1973.")  Inflation had taken hold, and the Federal Reserve decided that enough was enough.

The Fed started raising the Discount Rate to combat inflation. 

In four short years, the discount rate rose from 5.25% to a staggering 13.00%.  Remember that the discount rate is the rate banks pay to borrow the money they lend to you. You pay more.

What did that mean to consumers?  I was a homebuilder in the 1980's.  My buyers back then had first mortgages as high as 17%.  (And we still sold new homes at the Jersey Shore.)  Second mortgages were available at 21.5%.

Parallel to today...

Nixon was winding down the Vietnam war, and bringing home the troops.  The NY Times headline on March 29th (the day the last of the US forces were out of Vietnam) was Nixon Sets Meat Price Ceilings at Both Wholesale and Retail; Asserts Costs 'Should Go Down'. 

Congress was trying to force an outcome on the free market. 

The result was inflation. 
Rates had to go up to kill the monster, and economic results of the next decade were a template for for our current dilemma.

Moral of the story?

If you intend to finance the purchase of a home, better do it now!  I recommend a 30 year fixed rate.

p.s.  If you intend to qualify for the $8,000 first time homebuyer tax credit or the $6,500 credit, you must be in escrow by April 30. 

Call your REALTOR now.

___________________ 

I'm Mike in Tucson, your preferred Tucson Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Mortgage Bankers, Not Brokers!
Offices in Scottsdale, Tucson, and Nogales, AZ, and Albuquerque, NM.

Call me on my Blackberry  (520) 349-9090

photo courtesy Kevin Chauvin, Flickr

 

OneWest Bank Releases Their First Year Profit Statement $1.6 Billion- You Won't Believe This One!

Kudos to Scott Reckard with the LA Times.  He wrote an article today that is sure to open some eyes.  The article, titled "OneWest Bank Profit: $1.6 Billion" does an excellent job of pointing out some very interesting observations.

According to the article, OneWest paid the FDIC $1.55 Billion for the failed IndyMac Bank, and turned a profit of $1.57 Billion in it's first year.  The article specifically addresses the shared-loss agreement that was also put in place by the FDIC, which is expected to cost the FDIC nearly $11 Billion.

The reason I'm posting this article is that it dovetails perfectly into my blog titled "Is The FDIC Killing OneWest IndyMac Short Sales" in September/2009.  The blog, which ended up being the basis of the recent video produced by Think Big Work Small (without my knowledge or consent, by the way) deals with a transaction I handled for one of my clients with OneWest Bank.  Rather than go into all of the details of the blog you can read it here.  But basically, it centered on shared-loss deals, and how they are creating a disadvantage for consumers trying to accomplish loan modifications or short sales.

The FDIC was so upset with the video that they decided to issue an official press release on Friday, February 12th.  The LA Times article specifically states that the FDIC refused to comment today on the profit statement released by OneWest today.  

So let me get this straight...  The FDIC issues an official press release on a YouTube video, but doesn't want to talk to anyone about the profits OneWest just reported today, and the possible effects of the shared loss agreement they have in place with them?  Interesting.  Anyway, enjoy the article.  This story is beginning to "grow legs", as they say.  With 93 other loss share agreements in place, according to a recent Business Journal article, I'm sure this is something we will all hear more about in the very near future.

Oops, I spoke to soon!  While writing this article, I just found out that the FDIC just issued ANOTHER press release, this time announcing that they just sold La Jolla Bank in La Jolla, CA to, guess who?  You got it, OneWest Bank!  And guess what?  That's right, they signed yet another Loss Share Agreement with them as well.  Well, that makes a total of 95 loss share agreements, and counting!

Folks, it's time to stop this madness.  The LA Times article shows what this program is costing the American Taxpayer.  Some, like the FDIC (and their banker buddies) will tell us time and time again that the FDIC receives no taxpayer dollars, and is funded wholly by the FDIC premiums charged to the banks.  Think about it... When banks have to pay more for increased premiums, where do you think they get the money?  Quite simply, they raise their rates to YOU, the consumer, to cover these additional expenses.  And, when they finally run out of money, they have a nice little $500 Billion "Credit Card" they can use at the U.S. Treasury.  Where do you think this money comes from?  Correct...  YOU, the taxpayer.

So do your part and help spread the word.  It's time to stop asking questions, and start demanding answers from our fearless leaders in Washington.  Don't just read this and get mad.  Read this and share it with all you know.

Bob Hertzog

www.foreclosureuturn.com

10 Important Facts about the Extended First-Time Homebuyer Credit 

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy - or enter into a binding contract to buy a principal residence - on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you've lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 - whether the credit is claimed for 2008 or for 2009 - and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.

 

Links:

• First-Time Homebuyer Credit
• IR-2009-108, First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

YouTube Videos:

• Recovery: New Homebuyer Credit - November 2009
• Consejo Tributario: Consejos Tributarios de Fin de Año Noviembre 2009

Sandy Mitchell, Buyer's Agent

503-502-6408

The Kelly Group, Keller Williams

Portland Premier

215 N Blaine St.

Newberg, Oregon 97132

 

Is The FDIC Killing Indymac OneWest Bank Short Sales?

As some of you may already know, I specialize in helping homeowners avoid foreclosure through the use of short sales.  Recently, I dealt with a very interesting case involving Indymac/OneWest Bank, that I felt needed to be brought to the attention of all American taxpayers.  

Basically, IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure.  For the life of me, I couldn't figure out why they were doing this.  The BPO came in at the contract price of $275k, with a net to IndyMac of $241k.  What advantage could there possibly be for them to proceed to foreclosure?

Yesterday, I figured it out.  You see, IndyMac was taken over by the FDIC and sold to OneWest Bank in March/2009.  Guess who the investors are behind OneWest?  George Soros, Michael Dell, Steve Mnuchin (former Goldman Sachs executive), and John Paulson (hedge-fund billionaire).  

Now, listen to the deal they got from the FDIC....

Basically, they purchased all current residential mortgages at 70% of par value (70% of the outstanding loan amounts).  They purchased all current HELOCS at 58% of Par Value!!!

Next, in order to "sweeten the pot", the FDIC stepped in and guaranteed the following:  For any residential mortgages where OneWest experiences a loss, the FDIC will step in and cover anywhere from 80%-95% of the loss.  The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan.  Let's use my clients actual situation as an example:

Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200

OneWest pays $334,600 for the loan

We have an all cash offer of $241,000, net to OneWest.

So, let's do the math, shall we?  The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer.  In this case, $485,200-$241,000, or $244,200.  Next, the FDIC, according to their Loss Share Agreement, writes a check to OneWest for 80% of the so-called "net loss".  So, in this case, OneWest gets a check from Uncle Sam for $195,360 (.80 X $244,200).

Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360.  Remember, OneWest paid $334,600 for the loan.  So, OneWest puts $101,760 in their pocket, thanks to the FDIC.  Folks, that is over $100k of our hard-earned tax dollars!

So, you ask...Why does this program hurt short sales?  Because, our brilliant government offers this SAME PROGRAM FOR FORECLOSURES!  The only difference is, the government picks up 80% of the tab on all of the extra costs associated with a foreclosure (BPO's, upkeep, utilities/maintenance, legal fees, etc.)

So, If I'm OneWest, why would I want to waste my time negotiating through a Short Sale, when I can make the same amount of money (if not more) by just letting it go to foreclosure?  And we wonder why nobody can get a Loan Modification?  Why would OneWest approve a loan modification for this guy, when they can foreclose and make over $100k?  And, to add injury to insult, they have held this loan for 6 months!  Not a bad ROI, huh?

What infuriates me the most is that in my particular case mentioned above, they have the guts to hold my client hostage for a $75k promissory note, after they are already making more than $100k on the sale!!! This is his primary residence, 1st Position loan, and OneWest has NO RECOURSE!  Imagine if they could make $100k, then get a deficiency judgement!  Talk about making some big bucks!

Can you say "GREED"?

But wait, here's the best part...  I sent letters to Senators John McCain and Jon Kyl, with a cc to the CEO of OneWest, explaining the current loss-share agreement, as well as including the FDIC worksheets, with the actual numbers in this case, showing them that OneWest was making a profit of over $100,000 on this deal, thanks to the FDIC.  Within 24 hours, I received a response from the PR Firm representing OneWest, telling me that OneWest would dismiss the promissory note requirement, and the short sale was approved.  We closed escrow 3 weeks later.  My client not only avoided a $75,000 commitment, but also salvaged his credit by short-selling his home, versus handing it back to OneWest via foreclosure.

The scary thing is that over 50 banks have Shared Loss Agreements in place with the FDIC.  Some of them include:  Bank of America (go figure), CitiMortgage, Wells Fargo, etc.  

This entire agreement between the FDIC and OneWest can be found here, on the FDIC website.  It's all there, for the world to see!  They have it all laid out.  All of the formulas, worksheets, etc.  

Now, it's up to us to bring it to the attention of our elected officials and the media.  Enough is Enough!

Wait, it gets better...The FDIC just announced that they are "considering" borrowing money from the U.S. Treasury in order to replenish it's deposit insurance fund (the same fund being used to pay all of these banks in the Loss Share Agreements).  Go Figure! Don't believe me?   Click Here to read it.

Robert G. Hertzog

Phoenix Real Estate Consultant

www.foreclosureuturn.com

 

 

 Home Inspection Expectations

Today, I decided to ask my husband for some ideas about what to write about.  He is a home inspector with over 3000 inspections under his belt and is also a licensed real estate agent.   He suggested discussing what you or your prospect should expect when working with a home inspector.

Most of you know the mechanics of an inspection but today, as I wear my Realtor hat, I am adding a quick checklist you might find helpful:

•·         Home inspectors do not move furniture or raise carpets (they will probably look under a rug)

•·         Home inspectors can't look inside walls but can make an educated guess about what is inside

•·         Home inspectors can estimate the condition of a roof which is concealed by shingles but can't tell you how long it will last

•·         Home inspectors don't fix things

•·         Home inspectors don't disassemble equipment that doesn't have an access panel (like your central air conditioner or heat pump

•·         It is critical that water and power be turned on before the inspection starts because anything related to water and electricity can't be inspected without those services

•·         Most home inspectors will not turn on water or electrical systems when they've been turned off at their source (one inspector turned on water at a second floor bathroom without knowing that it was turned off because a pipe was split and wound up replacing carpeting down the stairs and on to the first floor)

•·         Cartons piled in rooms in preparation for moving prevent the inspector from seeing significant portions of that room

•·         Attics and/or basements that are jammed packed with storage will prevent the inspector from performing a detailed examination of the upper and/or lower structure - inspectors are not going to risk live and limb crawling around obstructions - especially when he/she might fall through a ceiling

•·         Make certain your clients choose an inspector who knows how to describe what he/she has found without being an alarmist - inspectors should have a good command of the English language

•·         My husband makes it a point to photograph every room and all appliances and include those photographs in the report so there will always an inventory of what was there when the buyer last saw the house

Understand that a good home inspector will miss some items but will find 95% of the problems of the house.  Understand also, that there will be some homes that will have no defects.  Recently, my husband  inspected four different homes that were in excellent condition and had no discernable defects.

 

The news is spreading fast...  As reported out from FHA on January 15, 2010 -

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

Measure to help bring stability to home values and accelerate sale of vacant properties WASHINGTON -

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties.

The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities. "FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens.

"This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity." The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.

To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions: * All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

* In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

* The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.

 

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA

(703) 538-2566

davidrose@mris.com

www.HighlandAgents.com

 

 

The US House of Representatives overwhelming voted to extend the first time home buyers credit for an additional 12 months to anyone in the military who has served overseas for three months in 2009.  In a vote of 416 to zero the bill now has to go the US Senate and the President for final approval.

This extension could give up to 350,000 military families currently deployed overseas unitl November 2010 to take advantage of the current tax credit.  In addition the IRS "recapture" rules will be waived for any service member who is deployed and must sell or rent their home. 

Known as the Service Members Home Owners Tax Act this bill also contains the provision to waive the income tax liability currently in the expanded Department of Defense Homeowners Assistance Program.  

The next step for this bill (HR 3590) is for the Senate Finance Committee to review the bill and hopefully move it to a vote in the full Senate.

This seems to be one time that the US Congress, Senate and President should be able to agree.  Extending the tax credit for our military is the right thing to do no matter what your political beliefs.

If you have a short sale property with an IRS tax lien, the IRS will remove thier lien and allow you to sell the home. It takes WORK but it can be done!

In cases where the homeowner has not paid their income taxes, the IRS may place a federal tax lien on the property. Actually, the lien covers all of the person's property including the home. Typically, you can convince the IRS to remove the tax lien (from the house) by requesting a Certificate of Discharge of Property from Federal Tax Lien (Publication 783) with the IRS.

The reason the IRS has placed the lien on the person's home is so that they will get paid whenever the person sells their property. If you can convince the IRS that the homeowner is upside down and that there will be no resulting proceeds from the sale, the IRS may agree to release their lien. Along with your request, you will need to include some supporting documentation such as the purchase contract, the payoff statement from the bank, and so forth.

I have had to deal with IRS tax liens on several occasions, and they are not fun. However, there is no way to move the short sale transaction forward until the IRS tax lien has been removed.

This entire process should be coordinated in conjunction with your title company or attorney. Make certain that you are working with a title agent who knows the ins-and-outs of the partial release of lien process. For more information and complete instructions, go to www.irs.gov and search for "Publication 783."

Happy Short Selling!

1. Your photos are unimpressive. The vast majority of home buyers start their search for a home on the Internet, your house had better look great in print. Not just nice... downright fabulous.  Today we are considering internet views as a 'virtual showing'... if your house gets past that, then they might (just might) make an appointment to see it in person... We consider that your SECOND showing. Today's buyers are expecting good quality photos (and lots of them... just 1 shot from the street won't cut it!), a virtual tour, maybe even a floor plan, if applicable.

2. It's overpriced. You've got to view your own property as objectively as possible.  Look at the home like a "buyer"... if necessary, go out with your Realtor and view other homes that are priced comparably to yours.  Be objective.  Given the other options on the market (and yes, you DO have to include short sales and foreclosures on your list... your potential buyers are!), would YOU buy your home, over the others on the market?

If no, then you either have to "update" your home to meet or beat the competition... or lower your price to adjust for it.  if you can't afford to sell for the price, that you KNOW it sell for, you may want to consider just removing it from the market.

3. It shows poorly. This could mean almost anything... from the barky, barky dog, to the smell of the diaper pail.  Maybe the carpeting is a bit worn, or the woodwork shows a lot of wear.  All things that don't show well from the internet, but whoa.... once you get inside the house... they show up, like a cat-urine-smell on a humid day in New Orleans!

4. You're invisible. Today's buyer comes from the internet, almost exclusively.  Have you (or your agent) simply plopped the property on the MLS, and started praying?  Are you on all the websites...(Trulia, Zillow, Craig's List, Google Base, etc...) all the places that buyer's are searching?  If not, you want to be.

5. Your listing is tired and stale on the market. Okay... yes, you overpriced your home initially when you first came on the market 2 years ago.  But since then you have reduced your price almost monthly... constantly chasing the market down.... Now, finally you're truly priced where you should be... but your listings is tired and stale.  Everyone looking for your type of property (ie: 3br/1.1 bath) in your area has already seen it, sometimes twice... and they remember that there was "something" about it that they didn't like... but what they don't remember is... what they didn't like.... was the price.   Time to take the listing off market.  Let it cool off (3-6 months), and bring it back on fresh in the Spring.  Yeah, you'll have 6 mos. worth of holding-costs... but you'll more than make up for it in your purchase price.

btw... Avoid the temptation to bring the house back on at a higher price, than when you left the market.  Just "don't do it"!

6. Your house won't appraise. The house looks great... you've finally gotten someone to bring you a bid on your slightly over-priced, but beautiful pied-a-terre.  But the bank appraiser says it's worth $20,000 less than what they've agreed to pay.  Heavy sigh... bite the bullet.... negotiate with them.   If you have to drop the price $20,000 to make it work.... "make it work"... chances are, anybody else trying to buy your house will run into the same problem.

FINANCIAL NEWS TODAY.  If one of the things that happened today was listening to the business news and hearing that the President's new plan to help stabilize the financial markets is to require that when Wall Street designs an investment product to sell to the public that they will have to keep "some skin in the game".  Interesting because the public probably didn't know that when Wall Street designed complicated financial instruments such as MBSs, CDOs, and plain vanilla CDSs were sold and traded by Wall Street investment houses who had "no skin in the game".  The securities sold by the Wall Street Gangs were often insured against default (credit swaps) by AIG who did not require that there be any "skin in the game" from anyone or any entity. 

SHOULD HOME BUYERS HAVE SOME SKIN IN THE GAME WHEN OBTAINING A MORTGAGE LOAN?  We often hear that home buyers should have "some skin in the game" when they finance a home purchase.  Of course the mortgage on the property is secured by the real property.  However, with no equity there is no "skin in the game" if the home owner defaults. 

WHICH IS THE BETTER RISK?  The American Home Owner or the Wall Street Securities Broker?

If the home owner defaults on their mortgage, they lose their home, their equity and their credit.

If the Wall Street investment banker sells securities that become worthless, they lose nothing.  In fact, the government may lend them money at zero interest or pump several $Billion Dollars into their bank to "tide them over". 

Wouldn't it be nice if the government treated the American Home Owner as well as they treat the Wall Street Gangs?

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

                                                           

 

Most people laugh when they hear about the scams that are taking place all over the net.  These scammers are hitting...Craigslist...Facebook...and even Flickr and today...I got one from one of my Careerbuilder alerts.  I've personally had several through all of these sources...fortunately I spend a lot of time on line...but what about those that do not?

I truly do not find it funny.....because so many fall victim.....we have to understand not everyone is a genius or have the basic understanding that most real estate industry professionals have when it comes to buying a home, selling a property or even requesting information on a rental.

A few statistics you should think about before making prejudgments on those who fall for these schemes...I live in an area...where many homeowners do not use the Internet at all!

• Did you know only 74.4 % of North America uses the Internet?  That means there is a good chance some who search for properties on line...may do very little searching...as a matter of fact...they may use the Internet rarely and may not be aware of these schemes. 

• 12 million people in the U.S. still use dial up according to www.rlslog.net!  Have you tried to use dial up recently?  Its hard to get information and really truly does not work well nor give a great experience on line. 

• According to Pew..its 9% who use dial up last year! 
  

• In many rural areas...broadband is not available still!
  

Today while going through my comments I found something quite interesting and thanks to Dave Dugdale...there is a software to detect whether you might be falling for a scheme...The Rental Scam Detection Tool!  I went ahead and tested and I think it is a fabulous tool for those who might fall prey. 

Very basic and very easy to use but specifics to look for when the schemers come scheming!

About The Author: Midori Miller is a Real Estate Trainer and writes and trains Real Estate Training and assists sellers in short sale situations. Midori is a Licensed Florida Real Estate Broker , License # BK645709 and a member of the Daytona Area Association of REALTORS. Contact midorimiller@yahoo.com or (386)453-3236.

 

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SenatorIsakson
June 10, 2009

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Senator Johnny Isakson announces that he is reintroducing his $15,000 housing tax credit that has no income limit or first-time homebuyer status requirement. Business Roundtable in New York adopted...

Senator Johnny Isakson announces that he is reintroducing his $15,000 housing tax credit that has no income limit or first-time homebuyer status requirement. Business Roundtable in New York adopted this tax credit as its number one suggestion to the U.S. Government as the one thing we can do to turn around the American economy. June 9, 2009.

      I believe that now is the time to begin urging your representative to revisit this issue.  There has been some movement toward expanding this tax credit to include all buyers and to increase it's amount to $15,000.   There is an article you can read here, submitted by the office of US Senator Johnny Isakson on this proposed new legislation.

     Additionally, this week we at Coldwell Banker received a summary of ideas discussed at the recent Business Roundatable Discussion held in Washington D.C.  The highlights are these

 

• Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;
• Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
• Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
• Make permanent the current temporary conforming loan limits; and
• Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices

     If you believe, as I do, that this will assist all homebuyers and should be considered by the current administration, please contact your representatives and tell them so.  You can locate contact information for your Senators here and your State Representatives here.

     They have a chance to make a difference, and I for one intend to encourage them to do so.

 

ActiveRain Members - HGTV’s "House Hunters" Is Now Casting and Looking for YOU!

                     

HGTV’s hit TV series, House Hunters, is looking for Homebuyers and Real Estate Agents who want to appear on the show!  ActiveRain and HGTV are working together in an effort to find qualified candidates who may be interested in sharing their "House Hunting" journey on National Television. 

This could be a huge opportunity, and a lot of fun for some of our members and their clients.

House Hunters follows buyers and their agents on the hunt as they find just the right house for them—and every story is different.  If you’re an energetic and outgoing Real Estate Agent currently working with a Homebuyer, we'd love to hear from you. 

Are you in Pennsylvania, New Jersey, Missouri, Minnesota, Georgia or Colorado?

House Hunters is currently looking for Homebuyers who are:

Buying within a 90 min. drive of downtown Philadelphia, Denver, Atlanta, Minneapolis/St. Paul and St. Louis

Closing in the next 1-2 months, this includes buyers who are actively bidding on a home or newly under contract

Fun, enthusiastic, and have a great story to tell

If you're interested, let me know and I'll forward your information to their Associate Producer.  If you'd rather, you can also apply directly at HouseHunters@HighNoonEntertainment.com.  Thanks for helping us find some members and clients for their show, we're excited about assisting them with this endeavor.

House Hunters airs weeknights at 9/8c on HGTV and is produced by High Noon Entertainment.  To learn more about the show visit HGTV.com/HouseHunters.  We appreciate your support with this Casting Quest.