Real Estate Information Archive

1. Homeowner consults a credit counselor.  You can find a certified one through the National Foundation for Credit Counseling (nfcc.org). The agencies themselves are funded by grants, so the service is free!
2. The counselor reviews homeowner's monthly budget and expenses.
3. Counselor will contact bank to discuss a "restructuring."  Sometimes the bank may contact the customer.  Citibank, for instance, plans to contact 500,000 borrowers at risk of default to make sure they can repay their loans.
4. The bank proposes a modification.  Often it asks for a good-faith initial payment - usually some portion of the past-due payment, which can run from as little as $500 to several months' back mortgage payments.  (In fewer than 10%, a homeowner might be so far behind on payments that the counselor can't help.)

FROM THE PRESIDENT OF NAR

For nearly four months, NAR has been working to deliver to our nation a comprehensive plan to stabilize the housing market.

This week, we saw countless hours of hard work pay off – in a MAJOR way – when the federal government implemented NAR's recommendations to stimulate housing with the signing of the American Recovery and Reinvestment Act of 2009.

This bold and unprecedented move to help housing did not happen by chance. Just a few months ago, the auto industry had Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and public pressure that we – the REALTORS® of America – placed on lawmakers in Washington, D.C., housing emerged as the top priority in the new Administration and in Congress. While some of the items in the Act are controversial and are currently being debated, most of our top priorities were addressed.

Thanks to all of our hard work, America’s homebuyers and homeowners will soon have:

1. Lower interest rates for home mortgages;
   
2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
   
3. A true tax credit incentive to buy a home NOW; and
   
4. Foreclosure mitigation and short-sale standards.

As a direct result of NAR's advocacy, we hope we will see an increase in home sales this year. NAR also continues to make significant progress on our efforts to unclog the pipeline for foreclosures and to address administrative problems with short sales.

Such significant movement on these critical issues is rare. I personally thank and congratulate each and every member of the National Association of REALTORS® for helping to make NAR's Housing Stimulus Plan a reality. For more information and details on these new laws and programs, visit the Unlock America's Economy Page on Realtor.org:

http://www.realtor.org/government_affairs/gapublic/gses_conservatorship?LID=RONav0023

Make no mistake -- we're just getting started. NAR will continue to push for other important laws and policies that can help you in your business. From keeping banks out of real estate to providing you with affordable health coverage, you can count on the "Voice for Real Estate" to help you gain an advantage in every kind of market.

That's the power of NAR, and it's why I am proud to be a member and to serve as your 2009 President.

Sincerely,

Charles McMillan, CIPS, GRI
2009 NAR President

Published on Friday, January 23, 2009, 9:06 AM  by Randy Eagar

 Every time I read the paper or listen to the news, I get mad.  Really mad.  In the last 30 days, the New York Times published the following headlines: 

“Plunging Housing Markets . . . Down Again”
“Home Prices Suffer Record Monthly Drop”
“Bank Closures at All Time High in 2008”

“Credit Crisis Waves Roll On”
“Growing Market in Foreclosures”
“Foreclosure Rates Show No Sign of Slowing”
“States Unemployment Funds Run Low”

And the bad news goes on and on, causing panic and fear until we become our own worst self-fulfilling prophecy. Here’s my beef.  It's media hype.  No it's worse than media hype.  It's a vast media distortion, used to sensationalize and sell the news.  It's not the first time the media has done this, but now it has hit close to home.  Close to your home, close to your client's home and your livelihood.  The result is that the American homebuyer is naively buying the lie and hesitating to buy that home they need. 

Another beef I have is that perhaps even a few of you Realtors reading this article have been sitting in your own family rooms reading and watching those headlines, and you've believed the hype yourselves. 

Why? Because, like me and everyone else who reads the papers, watches it on the TV and hears it on the radio, we think that just because the mainstream media says it, then, by golly, it's gotta be true.  Pundits know that if they repeat anything long enough, people believe it. 

Well I’ve got a few surprising facts here that were shared in a speech given by my good friend Utah Lieutenant Governor Gary Herbert.  He and I worked together years ago to establish the Utah Chapter of the Council of Residential Specialists.  OK, here's what he shared with us:

“Bank Closures at an All Time High in 2008”. Hogwash!

·         In 1989 there were 1,004 bank closures.

·         In 2008 there were 30 bank closures

• On average there are 94 bank closures per year

“Foreclosure Rates Show No Sign of Slowing”. Baloney!

• During the Great Depression Foreclosure Rates were 50%

• Nationally today our Foreclosure Rates are 3% (1.4% in Utah)

 “States Unemployment Funds Run Low”. Ridiculous!

• During the Great Depression Unemployment ran at 25%
• Nationally today our Unemployment is 7.2%

I challenge you to join me in confronting the main stream media in your own locations.  Spread this information in all your social networking.  It's the real truth.  It's not hype. 

I say let’s fight back and take back the one industry that is at the heart of the American Dream -- the Real Estate Industry -- and bring this whole mess, this nation and the world back from chaos.  The one best weapon that you have at your disposal is the truth! 

Are times right now bad? Yes. Do we have a shaky market? Yes.  But FDR's famous statement applies:  "The only thing we need to fear is fear itself."  It's time to start looking at our glass as 93% full rather than 7% empty. We need to look at putting 15-20% down payment and say what’s wrong with that? That's been a standard in real estate for years - a safe standard.  We need to look at qualifying procedures and make sure that we are selling homes to people who can afford them. 

We are the grass roots of the economy, and we can make a difference. We can take it back. All we need to do is to tell our buyers and sellers the truth about what is going on and stop the panic. If there is insanity going on it is in the pundits that look for all the bad news to make sensationalism sell their message.

Our message should be: "America is good. America is strong. America is proud!"

US home sales unexpectedly rose in December as buyers took advantage of much lower house prices, industry figures have showed.

Sales of existing homes rose 6.5% to an annual rate of 4.74 million, up from 4.45 million units in November, the National Association of Realtors said.

Analysts had been expecting December sales to total 4.4 million.

For 2008 as a whole, sales fell 13.1% to 4.91 million units, the worst year in a decade.

"It appears some buyers are taking advantage of much lower home prices," said Lawrence Yun, the association's chief economist.

"Buyers will continue to have an edge over sellers for the foreseeable future."

The association said that existing home prices fell by 15.3% in December from the same period a year earlier, with 45% of transactions viewed as "distress sales", where the seller was forced to sell at a discounted price.

2009 rebound?

The rise in home sales was also down to a fall in the number of unsold homes on the market.

However, analysts said that this trend could reverse, as sellers were likely to resume putting their homes up for sale in the spring.

"The bottom line is that existing home sales have weakened markedly following the credit market seizure in September," said Paul Ashworth, senior economist at Capital Economics.

"The subsequent decline in mortgage rates may spur a rebound in 2009, but nothing is guaranteed," he added.

.

THIS ARTICLE IS FROM BBC.CO.UK

Eyeing a Refi? The Time is Now

Many homeowners may feel like burying their head in the sand, an understandable sentiment given the recent shakeup in many markets. But with most interest rates in 2009 hanging around the lowest levels in decades, those playing the "ignorance is bliss" game may be missing out on a rare chance to improve their finances.

The Advantages of Now

Interest rates have dipped to levels not seen in decades, particularly on fixed-rate loans for prime borrowers. As the new year and a new administration get into full swing, average interest rates on 30-year fixed rate mortgages have hovered in the low 5% range (and in some cases, have dropped below 5%).While these rates have yet to translate into a quick turnaround home sales, they have spurned an increase in mortgage applications by homeowners looking to refinance at a lower rate. For homeowners sitting on a higher fixed rate or a less stable variable rate loan, the current interest rates may present an opportunity that just can't be ignored.

If you've been considering a refinance but have been waiting to see exactly how far rates will drop, this just may be the time to make a move.

What to Expect

While the last few weeks have seen an increase in refinancing applications, a sizable percentage of these applications will not be approved. Low interest rates aside, lenders are focused on protecting their investors and to that end have more stringent credit requirements than in years past.

Homeowners who owe more than the current market value of their homes are unlikely to be approved for refinancing. By the same token, would-be borrowers with low credit scores or without well-documented income have a much greater chance of being denied. Some homeowners who hold jumbo mortgages (over the $625,00 limit for loans that can by guaranteed/bought by Fannie Mae or Freddie Mac in high cost areas) may find refinancing hard to come by.

What to Do

• Do You Qualify? - Do you have a solid credit score (660 and above)? Are you up to date on your current mortgage payments? If the answer to either is no, your chances of being approved are much worse. Also, if you are shopping for a cash-out refinance, you'll find that the credit and loan-to-value requirements are even more stringent.
• Establish Value - The next step is to begin determining your home's value. You can use various online resources to get a rough gauge of current market value. Some owners will pay for their own appraisal prior to applying for the mortgage. Other homeowners have been known to seek a ballpark estimate from their real estate agent.
• Compare Savings - Conventional wisdom was that a refinance loan should be 2 percentage points below your current mortgage to be worthwhile. That standard may not apply, however if you can lower your interest rate slightly but still recoup closing costs in a short time span. Likewise, switching from an adjustable rate to a fixed rate mortgage may be worthwhile regardless. Be wary of refinancing that extends the life of the loan, as this will most likely make the loan more expensive over the long term.
• Prepare for Screening - Lending standards have become much stricter over the last year. Be prepared to discuss all aspects of your credit, your current loan and your income history. Have at least a two-year documentation of your income, as "stated income" mortgages have all but gone by the wayside.

• Back To Top

One of the tragedies of our current economic times is that there are many home owners who are finding themselves in a situation where they are facing forclosure or potential forclosure on their residence.  There are also many homeowners who are not able to afford their home payments due to a variety of causes and who cannot sell because they owe more money on their home than what the homes current value is.

Trying to find assistance that is reliable can be difficult and confusing.  The truth is that there are options and there is help available for many homeowners who find themselves in a bad situation.  If you know of anyone who may be facing forclosure or who is struggling with making their monthly house payment, please have them call me on 231 534 4600 so that I can help assist. 

Heating your home efficiently

Regardless of what the weather brings this winter, heating your home efficiently is probably something on your mind. Keeping your home a comfortable temperature when the weather turns bad doesn't have to be a financial drain. With a little bit of work, you can actually save a great deal on your heating bills:

Stopping Air Leaks
The first step to making your home more heat efficient is to identify air leaks. Common air leak sources such as recessed lights, doorframes, window frames, and electrical outlets can be a big drain of heat and money. You can check for air leaks yourself by walking through your home with a lit incense stick (horizontal smoke indicates a leak), or you can hire a technician for a more thorough inspection. Simple fixes like sealing around outlets and switches, caulking gaps in the framing, and plugging gaps surrounding pipes will typically result in noticeable savings.

Duct Problems
One of the most important systems in your home may be quietly wasting your energy dollars. Often overlooked, typical duct systems lose 25-40% of the heating or cooling energy put out by the central furnace, heat pump, or air conditioner. Common duct system problems include:

• Leaky joints or visible holes in the duct surface
• Disconnected ducts that have fallen away from each other
• Inadequate or poorly finished duct work
• Un-insulated or poorly insulated ducts in attics and crawlspaces

Most duct repairs should be made by a trained professional, especially those that will take place in unconditioned spaces. A qualified pro can also help you more accurately assess the duct problems that you have. If you decide to make minor duct repairs on your own, keep in mind that duct tape is usually only intended as a temporary fix. Silicone caulking or cement with mastic are better sealing options. Improving your duct system efficiency can cut your annual utility bills by as much as $300, and will improve the overall air quality in your home.

Keep your Home Insulated
Properly insulating your home is one of the most cost-effective ways to cut down on energy loss. Improving the insulation in your home can cut your heating and cooling costs by as much as 30%, and will create a more uniform, comfortable temperature in your home. Better insulation will also help decrease outdoor noise. Check the insulation in your attic, ceilings, exterior and basement walls, floors, and crawl spaces to see if they meet recommended standards for your area. The U.S. Dept. of Energy provides information on recommended insulation levels for each region. Typically the easiest and most cost-effective way to improve your home's insulation is to add insulation to your attic.

Thermostat Solutions
That little box on the wall can be a tool for big energy savings. You can save up to 3 percent for every one degree that you lower the temperature in your home over a 24-hour period in winter. You can also save up to 10% annually in your heating and cooling bills by adjusting your thermostat down 10% to 15% for an 8-hour period each day. Turning the heat down while you sleep or while you're away at work is a simple and logical energy efficiency solution. If the prospect of waking up to a chilly house doesn't excite you, buy a programmable thermostat. They are inexpensive and adjust the temperature in your home based on schedules that you determine.

Ceiling Fans
While most people think of ceiling fans as a cooling solution, they can also help maintain a warm temperature in your home during winter. Running a ceiling fan in reverse circulates rising warm air back down to living areas. Consider ceiling fans for your home, particularly if you have rooms with high ceilings that seem to stay colder. Ceiling fans vary in price depending on things like material and size, but many are inexpensive and easy to operate.

If you are selling your house it is important to understand that you only get one chance to make that First Impression.  When touring houses many buyers will make their decision to keep it on the 'Top 5' list within minutes.  Its vital that you do every thing to make your home look attractive and welcoming.  That includes avoiding the following:

Being greeted by Fido and Fluffy - you love your pets but people who are home shopping may not.  Make sure that Fido and Fluffy are out of the way during showings. 

Odors - imagine walking into a home only to catch a whiff of a lingering odor.  Top offenders are smoke, mildew, cooking smells and pets.  Since you spend so much time in the home you may not notice them so ask a friend or a neighbor for an honest opinion.

Damp basements - If you frequently get water in your basement the first thing you should do is get your foundation inspected.  Often the foundation is not the problem so also check that your yard slopes away from the home and that rain gutters are clear of debris.  You may need to install a dehumidifier or sump pump.

Outdated decor - even though most buyers will decorate to their tastes once they've purchased a home, having antiquated appliances, layers of wall paper or an unusual color of carpeting can make a poor impression on buyers. 

Clutter - de-clutter, de-clutter, de-clutter

While you may not want to spend the time and money to redecorate before selling you can repaint using neutral colors and store any clutter that you may have in your home.  This will give your home a fresh, spacious look that is more appealing to buyers. 

When the heat of the summer begins to cool is the ideal time to think about preparing your home for the change of the season.  Regular home maintenance is necessary to keep your home looking its best year-round.  Here is a list of tasks that you should accomplish before winter arrives

• Make sure all of your doors fit properly.  If they squeak, rub against the doorframe or do not close tightly, they may need to be adjusted.  Replace any worn weather-stripping.
• Check windows for drafts or cracks.
• If you have a fireplace, now is a good time to have it professionally inspected and cleaned.
• Look at your roof and gutters; replace or repair any damaged roofing shingles. Remove leaves or debris from guttering, vents and downspouts.  During a rainstorm make sure that water flows freely away from your home.
• Replace the air filter in your furnace.
• Trim trees and bushes so no branches are touching your home.
• Add mulch to garden beds if needed.
• Test your smoke and carbon monoxide detectors.  Replace batteries. 

Take a look at this old movie and see Sleeping Bear Dunes, Traverse City, Mackinac Island as they used to be. 

http://www.youtube.com/watch?v=QMR7veI78f8