Salt Lake City Real Estate Blog

Refinancing: Now Is a Good Time to Lock In

2011-02-05T12:56:00.000-08:00

FHA Property Flipping Waiver Extended

2011-02-03T19:42:00.000-08:00

FHA has extended their Property Flipping Waiver from February 1,2011 to December 31, 2011.

what is FHA Property Flipping Waiver?

Effective for purchase contracts dated February 1, 2010 and after, Borrowers may use FHA-insured financing to purchase previously foreclosed properties WITHOUT the 90-day waiting period:

HUD-owned properties
Bank-owned properties
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.

To protect FHA Borrowers against predatory practices of flipping where properties are quickly resold at inflated prices, this waiver is limited to sales meeting ALL of the following requirements:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction

Seller must hold title to the property

LLCs, corporations or trusts that are serving as sellers were established and are operated in accordance with applicable state and Federal Law

No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers (more than 2) in the last 12 months as indicated on the Appraisal report

Property was marketed openly and fairly via MLS, auction, For Sale by Owner or developer marketing (assignment of contract not permitted)

If the sales price of the property is 20% or more above the seller's acquisition cost:
Increase in value must be justified by supporting documentation and/or a second appraisal verifying seller has completed sufficient legitimate renovation, repair and rehab work to substantiate the increase in value or in cases where no work is performed, the appraiser provides an appropriate explanation of the increase in value since prior transfer

Second appraisal is always required if 100% increase in purchase price

Property inspection is required and MUST be provided to the purchaser before closing,

Borrower will be charged for the inspection

Non-FHA approved inspectors or 203 k consultants are allowed

At a minimum the inspection must include ALL of the following:
Property structure, including foundation, floor, ceiling, walls and roof
Exterior, including siding, doors, windows, appurtenant structures such as decks and balconies, walkways and driveways
Roofing, plumbing systems, electrical systems, heating and air conditioning systems

All interiors
All insulation and ventilation systems as well as fireplaces and solid fuel burning appliances

Inspector must not have any interest in the property or relationship with the seller and must not receive compensation for the inspection from any party other than the lender.

Inspector may not compensate anyone for the referral, may not receive any compensation for referring or recommending contactors to perform any repairs recommended, and may not be involved in performing any repairs recommended by the inspection

New Brokerage

2011-01-24T20:57:00.000-08:00

Starting in February, I will not be with Service First Realty Group any more. My new brokerage is Keller Williams in Sugar House, SLC. What does it mean for my clients?

nothing.

I am still a full time agent, who simply changed brokers. The thing is agents must hold license with the broker, and therefore, agents share their profit with brokers. It was a financial decision for me.

Besides finances, I felt that Keller Williams is better technologically set up and provide good training. I will all benefit me providing a better serve to you.

Otherwise, my contact info is still the same.

Marina Vialtsina
801-649-5883
marinav30@yahoo.com

Fencing Project by A Bit Of Help

2010-10-20T19:11:00.000-07:00

Interested in new fence, check the new fencing project A Bit of Help (handyman company - www.handymansaltlakecity.com) has just completed.

Interested, call Vladimir, he can do anything - 801-910-9580

A Bit Of Help's Latest Project - 801-910-9580

2010-10-08T20:48:00.000-07:00

Check this new BBQ/Backyard Project A Bit of Help (Handyman Company)has just completed. They can truly do anything. Check their site on www.handymansaltlakecity.com or call at 801-910-9580

Salt Lake City Handyman Service at 801-910-9580

2010-09-15T12:30:00.000-07:00

I highly recommend the service of A Bit Of Help - Handyman Company in Salt Lake City area. Any job is not too small or big - company is affordable, reliable, and high quality.

It can help you with electrical, plumbing, painting, landscaping, carpentry, tile/flooring, and anything else you have in mind to maintain or upgrade.

Give them a call at 801-910-9580

1898 East 3900 South Holladay, Ut is for $290,000

2010-07-20T13:46:00.000-07:00

Russian Document Center

2010-06-24T12:21:00.000-07:00

www.RussianDocumentCenter.com

Русский Документательный Центр – центр услуг. Мы предоставляем честный и быстрый сервис в следующих областях – услуги нотариуса, по недвижимости, услуги переводчика, иммиграционные, криминальные (включая DUI), легальные услуги, услуги связанные с туризмом и другие. Наш офис находится в центре Солт Лэйк Сити, Юта, состоит из нескольких адвокатов, риэлтора и переводчиков. Мы в состоянии обслужить клиента в любой точки земли, и можем брать оплату через этот сайт. Надеимся, что страницы сайта вам помогут найти нужную информацию и на скорое сотрудничевство.

Russian Document Center is a service company providing honest and speedy services in following areas – notary, translating/interpreting, real estate, immigration, criminal (e.g. DUI), legal, travel, and other services. Our office is located in downtown of Salt Lake City, UT and consists of several attorneys, paralegals, notary and translators. We are capable of serving clients around the world because of our convenient way of accepting payments through this site. We hope you find all pages of the site helpful, and we are looking forward to assisting you.

New Website

2010-06-16T13:07:00.000-07:00

We are about to finalize our website (Russian Document Center) which will consolidate all other online information about our services into one. We are now capable of providing service in following areas notary, translating/interpreting, real estate, immigration, criminal (e.g. DUI), legal, travel, and other services. And, soon will be able to accept payments online. Stay tuned.

Document Service Center (Russian Version)

2010-03-27T11:13:00.000-07:00

У некоторых клиентов возник или может возникнуть следующий вопрос, до сих пор можно ли ко мне обращать по вопросам недвижимости?...

Конечно, можно и нужно... наши услуги просто расширились...Вы, может быть, заметили что в списках бизнесов на форуме произошли изменения и упоминается о Russian Document Service Center

Чем занимается - Russian Document Service Center
10 West Broadway Suite 650 (Downtown of SLC) и 1714 South 1100 East (Sugar House) by appoitments only
801-649-5883

немного подробнее:

В городе открылся Russian Document Service Center
по адресу 10 West Broadway Suite 650 (Downtown of SLC) и 1714 South 1100 East (Sugar House) by appoitments only

в центре работает 5 адвокатов (в том числе говорящий на русском языке), 3 нотариуса/переводчика, и 2 паралигала. Офис говорит на русском, английском, испанском и французком языках (native speakers)

благодаря такому профессиональному штату, мы в состоянии предлагать следующие сервисы:

* легальные услуги - все роды услуг по вопросам иммиграции, контракты, вопросы по авариям, DUI, криминальные проблемы (воровство, убийства, драки), и многое другое

* услуги по недвижимости - лично я выполняю функции риэлтора, паралигала, и являюсь частичной владелицей центра

переводы - письменные - любые документы, тексты, и так же услуги нотариуса. устные - деловые встречи (выставки, конференции, переговоры, кынсультации, судебные слушания, телефонные разговоры, свадебные церемонии и другие ситуации)

* аккредитация дипломов

* оформление Российского гражданства

* оформление бизнес лицензий

* туристические услуги

Другими словами мы можем помочь во многом, а если лично не сможем, то наша репутация и знания других специалистов переведет вас в надежные руки...

Так как мы часто работаем вне офиса, то назначайте встречи по телефону - 801-649-5883

Document Service Center

2010-03-24T11:08:00.000-07:00

Document Service Center provides following services:

* Translation and Interpreting - for courts, attorneys, medical appoitments, conferences...We speak following languages fluently and natively - English, Spanish, Russian, Italian and French.

* Real Estate Services - Purchase and Sales of Residential Places - Marina Vialtsina, Realtor with Service First Realty Group

* Legal Services - (because of working closely with numerous attorneys in town, we can refer you to great specialists) - call us if you have following problems or need a consultation -

All Immigration Matters, DUI/DWI, Drug Possession/Distribution, Domestic Violence, Assault, Homicide, Robbery, Burglary, Financial Fraud, Identity Fraud, Theft, Sexual Assault, Parole/Probation Violation, State and Federal Appeals, Habeas Petitions, Juvenile Offenses, Car Accidents, Divorce, Other Family Matters, Etc.

* Notary Service - we can notarize any document (also, mobile notary is available - we will come to you if you cannot come to us)

* Tourist Service - we can provide guide services around SLC, Las Vegas and throughout of California

* Russian Citizenship - we can help your kids born in US to get Russian Citizenship if you have one.

* Business Registration - we can open your business anywhere in US

Please let us be your Center for any matter you may have - Please call Marina at 801-649-5883 or e-mail at marinav30@yahoo.com

Last Time about Tax Credit

2010-02-23T19:11:00.000-08:00

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that: Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by two additional factors:
The price of the home.
The buyer's income.

Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with Incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit. These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Non -Owner Occupied Properties and Duplexes

2010-02-18T14:27:00.000-08:00

Most non-owner occupied purchases now need 20 - 25% down. MI companies will not insure them. Hard to comy by the seller financing or good terms of seller financing. Borrowers can still buy duplexes on as Owner Occupied properties with and FHA mortgage with 3% down

FORM 5405 for homebuyers' tax credit

2010-02-16T10:07:00.001-08:00

If you bought the house and want to receive the tax credit of $8,000 or $6,500, Make sure you are aware of the new form released by the Internal Revenue Service (FORM 5405) that eligible homebuyers need to claim for their 2009 tax filing if they took advantage of this first-time homebuyers credit.

Taxpayers claiming the homebuyer credit must file a PAPER tax return because of the added doc...umentation requirements implemented to deter fraud and ensure taxpayers properly claim the credit. Additional requirements and link to FORM 5405 provided in the link.See More

http://www.irs.gov/newsroom/article/0,,id=218336,00.html

If Buyer does not have a downpayment?

2010-02-11T14:24:00.000-08:00

In today's lending situation, is it possible to buy a property with no downpayment -

well if they do not have a downpayment, as long as they have two credit scores above a 660 and they meet the income qualifications, they are eligible for the Utah housing program. They need to talk to a lender to make sure they qualify

What your home needs this year.

2010-02-05T10:04:00.000-08:00

Keep it well-maintained...the Guide of What you need to do and When:

Winter-

Clean the Vent behind your dryer - machine will work quicker, lower risk of fires - Cost $15-45.

Check your furnace filter - change it one-twice a year. Cost - $8-20/each

Make sure your sump - pump is clean and operating properly

Storm windows will keep the house warm

Vacuum condenser coils

Use your stuck-inddors time to knock off some annual fire prevention tasts. Less that $20 for fire extinguisher and $10-12 for circuit interrupter.

Change batteries the same day you change clocks in smoke detectors and carbon-monoxide alarms twice a year.

Spring maintenance list is coming up in March 1 blog.

How much is your jewerly worth?

2010-01-27T09:52:00.000-08:00

with prices at record highs, this is your chance to trade in your old jewerly for somthing more liquid. according to Money magarzine.

The following work sheet is proposed to estimate a fair price for your gold.

1. weigh your gold on a kitchen scale (grams)
2. multiply that number b ythe current price of gold (cnnmoney.com/data/commodities)($ per ounce)
3. divide by one of these...

10k -/74.8
14k -/53.2
18k -/41.5
24k -/31.1

4. multiply by 0.50 and 0.80....you will get a range, a fair price is somewhere between that range.

Homebuyer Tax Credit Extended!

2010-01-22T09:48:00.000-08:00

Are you a first time home buyer with income of no more than $75,000 ($150,000 for couples)?

You can still qualify for last year's $8,000 tax break, assuming you are in contract by April 30 and close before July 1.

Owned the same home for at least 5 years?

You can now get $6,500 tax credit if you buy another within the deadline.

Senators agree to extend homebuyer tax credit

2009-10-29T10:19:00.000-07:00

By STEPHEN OHLEMACHER
The Associated Press
Wednesday, October 28, 2009; 8:00 PM

WASHINGTON -- Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.

Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.

Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.

Majority Democrats have refused to add the amendments.

If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers.

Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate.

Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.

Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March.

It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors.

"Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said.

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.

The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years.

The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive.

"It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax.

A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag.

Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/28/AR2009102803959_2.html?referrer=facebook

New Local Stimulus Fund

2009-09-04T10:20:00.000-07:00

SALT LAKE CITY (AP) -- Utah Gov. Gary Herbert says he'll use $8 million in federal stimulus funds to help kick start the state's sluggish housing market.

Herbert's office released a statement Friday saying that the state will offer $4,000 grants to 2,000 home buyers.

The program comes on the heels of one started by former Gov. Jon Huntsman, who used $10 million in stimulus funds offer $6,000 grants.

The state awarded those 1,600 grants in less than 12 weeks earlier this year.

The Utah Housing Corporation says the grants have led to home sales of $376.7 million, creating thousands of jobs and millions of dollars in wages.

Velocity of Money

2009-08-17T10:14:00.000-07:00

Velocity of money concept is not difficult. In simple terms: when you buy milk, the owner of grocery storee takes the profit and buys a couch, then the furniture store owner buys something else, etc.

So, the same money passes through the economy over and over again, triggering growth, jobsa, & inflation.

The latest Retail Sales Report shows the velocity of money effect has been stagnant...meaning thatgrocery store owner is not running out to buy a couch with his profit.

Once consumer spending starts increasing and the velocity of money does as well, inflation is likely to follow. This will be something to look for as the economy continues to stabilize.

Something else to look for is the approaching end of the Fed's Bond purchase program. Home loan rates have stayed historically low since the program began in January.

Here is another reason that would push Bonds down and mortgage rates up possibly in the future.

Bonds and rates did manage to end last week better than where they began, but there was a great deal of volatility along the way.

Mortgage Programs:

2009-08-13T10:00:00.000-07:00

Fannie Mae HOMEPATH Loan

- Minimum 660 middle FICO score required
- Appraisals are NOT required
- Great for first time homeowners AND Investors
- 97% LTV Primary Residence
- 90% LTV Investor (5 plus properties financed limited to 75% LTV)
- No monthly Mortgage Insurance payments
- Owner Occupied AND Investment Property
- Down payment can be 100% gifted
- Property must be listed for sale with the Fannie Mae HOMEPATH program
- NO declining market restrictions

Federal Housing Administration Loans - OK to 580 scores

- Minimum 580 minimum middle FICO score required
- Great for first time homeowners
- 30 Year Fixed Rates Only
- Low, government sponsored, monthly Mortgage Insurance payments
- Owner Occupied Only
- 12 months verified rent history required
- Down payment MUST come from borrowers own funds
- Gifts allowed for all closing costs
- Compensating factors required for 580 scores
- NO declining market restrictions

Federal Housing Administration Loans - 100% Gifts Allowed for Down Payment

- Minimum 620 FICO score required
- Great for first time homeowners
- 3.5% Down Payment can be a gift from relatives, employer, city grant
- VERY LOW 30 Year Fixed Rates
- Low, government sponsored, monthly Mortgage Insurance payments
- 1 Day out of Chapter 13 OK with re-establish credit (2 years with Chapter 7)
- Owner Occupied 1-4 unit only
- NO declining market restrictions

USDA Loans - 100% No Money Down for Qualified Properties

- Minimum 620 FICO Score - buyer(s) must have “reasonable” credit history
- Great for low to moderate income and first time homeowners
- Household Area Median Income Limits Apply
- LOW 30 Year Fixed Rates
- No monthly Mortgage Insurance payments
- Owner Occupied Only
- Property must be located in a USDA defined market

Veterans Administration Loans - 100% No Money Down for Active and Veteran Military

- Minimum 620 FICO score required - buyer must demonstrate ability to pay
- True No Money Down Financing for qualified buyers
- Low 30 Year Fixed Rates
- NO Monthly Mortgage Insurance payments
- No Income Limitations
- Loan Amounts from $75,000 to over $417,000
- Owner Occupied Only
- No declining market restrictions

Conventional Loans (Fannie Mae and Freddie Mac) - 100% Gifts Allowed for Down Payment

- Minimum 700 FICO Required
- Great for the established buyer looking to leverage through financing
- 3% Down Payment can be a gift from relatives, employer or city grant
- LOW 30 Year Fixed Rates
- Median income limits apply (only income from borrower on loan used to qualify)
- Loan amounts up to $417,000
- Owner Occupied Only
- Monthly Mortgage Insurance payments required
- Declining market restrictions apply

common misconceptions about the federal government's tax credit for first time home buyers:

2009-08-12T10:33:00.000-07:00

Real estate agent Michael Maher joined FOX 4 Wednesday morning to clarify the most common misconceptions about the federal government's tax credit for first time home buyers:

1. It's only for people who've never bought a home. False! If you sold a home in the past and rented for the last three years, you may qualify.

2.It has to be paid back. False, this is a tax credit. You will receive a check from the federal government four to six weeks after you complete the form at the closing of your home purchase.

3.It's a lengthy and difficult process to get the tax credit. Fase, it's just one form you have to fill out for the IRS.

4. You can use the tax credit for your down payment. False. Some lenders offer some programs which require you to sign over your credit to them, but be very cautious about these. Read all the fine print! Technically, the way the program is structured, the money is not for your down payment.

Again, you do not receive the money at closing. You will receive it four to six weeks after closing.

5. There's plenty of time left to buy. False. You must close on or before November 30th, 2009, to take advantage of the tax credit. Remember that closing on a house takes 30 to 60 days. Leave yourself plenty of time for the inspection, title search and document preparation.

You can find out if the tax credit will work for you at a free seminar, Friday, Aug. 14, at 4 p.m., at the Overland Park Convention Center. To register, call 1-800-441-7699, EXT. 4664

Copyright © 2009, WDAF-TV

TAYLOR BEAN MUST CEASE...

2009-08-10T12:44:00.000-07:00

1
PRESS RELEASE
August 5, 2009
TAYLOR BEAN MUST CEASE ALL ORIGINATION
OPERATIONS EFFECTIVE IMMEDIATETLY
OCALA, FLORIDA – TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED
NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING
TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE
RESPECTIVE FEDERAL AGENCIES. TBW HAS UNSUCCESSFULLY SOUGHT TO HAVE THE
TERMINATION/SUSPENSION DECISIONS OF EACH OF THOSE AGENCIES REVERSED. AS A RESULT OF
THESE ACTIONS, TBW MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATELY.
REGRETTABLY, TBW WILL NOT BE ABLE TO CLOSE OR FUND ANY MORTGAGE LOANS CURRENTLY
PENDING IN ITS PIPELINE. TBW IS COOPERATING WITH EACH OF THE AGENCIES WITH RESPECT TO
ITS SERVICING OPERATIONS AND EXPECTS TO CONTINUE TO SERVICE MORTGAGE LOANS AS IT
RESTRUCTURES ITS BUSINESS IN THE WAKE OF THESE EVENTS. WE UNDERSTAND THAT THIS COULD
HAVE A SIGNIFICANT IMPACT ON OUR VALUED EMPLOYEES, CUSTOMERS AND COUNTERPARTIES, AND
ARE VERY DISAPPOINTED THAT A LESS DRASTIC OPTION IS UNAVAILABLE.

You might be ablt to use tax credit ($8,000) IMMEDIATELY!

2009-06-05T18:02:00.000-07:00

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.

Shop for Home Loan

2009-06-02T21:14:00.000-07:00

Three Mortgage Comparison calculators - and what they are best for:

1. Zillow.com

Best for vetting lenders and brokers. You an sort rate quotes based on user reviews.
The catch is that quotes are posted to your online account, so the rates may be out of date after a few days.

2. Mortgage-Marvel.com

Best for finding the most current rates. The site updates them in real time.
The catch is that the quote tool does not let you input your income. If yours is too low for the loan you want, you may have trouble getting approved.

3. LendingTree.com

Best for narrowing down your options. The site matches you with up to four lenders who get in touch via phone or e-mail to tell your their best rates.
The Catch is that you cannot shop anonymously. Plus, some lenders will pull your credit report, which can hurt your credit score if you don't get a mortgage within 30 days, and check it too often.

Looking for Handyman? A Bit of Help is recommended at 702-228-2332

2009-05-29T21:00:00.000-07:00

In today's economy, the referrals of friends are especially important; if you are looking to do some home repairs and/or remodeling, please look no further.

I strongly recommend you to use my father's services: electrical, plumbing, carpentry, tile, etc. Believe me he can do ANYTHING. Even though his business (A Bit of Help) is primarily based in Las Vegas, NV; he occasionally comes here.

You can discuss your needs over the phone and even get the estimate. In today's economy, the referrals of friends are especially important, and I would love to see my family here more often.

Call Vladimir at 702-228-2332 or http://www.myvegashandyman.com/

Short Sale & Credit Score

2009-05-26T08:24:00.000-07:00

Short Sale for Sellers: Let's say you have to relocate, my your home value fallen nearly $100,000, and you have to get rid of your home - the question is foreclosure or short-sale?

A short sale, in which you negotiate with the bank to sell your home for less than you owe on your mortgage will have a dramatically negative effect on your credit. A consumer who has been through a short sale could see a drop in his/her credit score of up to 200 points, essentially the same decrease as if the homeowner gone into foreclosure, says John Ulzheimer, president of consumer education for Credit.com. and like a foreclosure, the negative mark will pull down the score for seven years.

That said, if you are underwater on your mortgage and you need to move, a short sale might be a better option than foreclosure. Going through a foreclosure will make it very difficult for you to get a loan for at least 3-5 years; with short sale, you might be able to qualify within 2.

Another thing to find out and consider, the forgiven debt is completely forgiven; or you would be expected to pay taxes on it. (it depends on your mortgage holder)

Short Sales for Buyers: at this point, the process is not regulated, and only banks decide how long it may take, how many offers banks wants to receive, and who essentially would win the auction. If you are patient and determine to get short sale deal, do it! Please remember, the listing price of short sale is usually not what the bank is willing to accept, and there are other deals out there.

Home Run Grant to Purchase property in Utah

2009-04-16T07:19:00.000-07:00

Besides $8,000 federal tax credit that applies to first time home buyers or those who haven't owned the home in the past three years:

Utah Governor in March signed local grant - award - $6,000 So called home run grant is a mortgage assistance program for home buyers who purchase a newly-constructed, never occupied primary, single family residence in Utah. Home buyers must meet following income restrictions: single person - $75,000 and married couple - $150,000. Again, this grant is additional and separate from federal grant, you have to work directly with mortgage banker, for step-by-step instruction visit utahhousingcorp.org...

Personal Update (updated)

2009-01-30T13:40:00.000-08:00

As I wrote on January 17 about the chance of me disappearing for a while due to pregnancy.

Well, there are three of us now in the family.

My little boy: Anthony Michael Delicino joined us on Jan. 23 (only 2 days before my B-day) at 6:05 pm...

I am thankful for your support and understanding.

I am still actively involved in what I do, and would love to help you out with property purchases and sales.

Thanks,

Marina
801-649-5883

"HAVE THE NERVE TO GO INTO UNEXPLORED TERRITORY" - a little bit about last week...

2009-01-17T08:55:00.000-08:00

Taking those words to heart, Bonds and home loan rates did exactly that last week, reaching historic levels.

A few important news items from last week... First, the results are in on the Fed's first run at purchasing Mortgage Backed Securities under their new $500 Billion buying program. Over the last week, the Fed bought $10.2 Billion of Mortgage Backed Securities. Any time there is increased buying demand - for anything - prices will move higher. When Bond prices move higher, home loan rates improve.

Next, Stocks faced selling pressure last week due to a rash of earnings warnings from the nation's retailers, including Macy's, who announced they are closing eleven stores. Because money coming out of Stocks is often parked over into the Bond market, Bonds and home loan rates responded by reaching never-before-seen levels.

Finally, the job market reached a level not seen since 1945. The Labor Department reported on Friday that there were 524,000 jobs lost during the month of December, which you can see in the Jobs Report chart below. Why does the chart look unusual? Because it's measuring a negative number, for something that is normally reported as a positive, as in number of jobs created.

Personal Update

2009-01-15T08:49:00.000-08:00

The next few days: my goal is to keep you update in this crazy economy and give you options of what might be done. Also, Utah has changed some laws regarding which contract can and cannot be used while buying and selling real properties. I would try to keep you updated about 10 new/changed things you should know about Real Estate Purchase Agreement (and all unchanged items can be found in this blog's all posting)

However, if I disappear one of this coming days: it is due my pregnancy: I have 6 days to go before my due date. And, only my little boy knows when he is planning to make an appearance.

I would try to keep you posted, and notify everyone as soon as this event happens. For now, I would like apologize in advance for possibly disappearing for a while.

Happy New Year!

2008-12-31T10:28:00.000-08:00

I would like to wish all my blog readers a Happy Safe and Better New Year! Thanks for all yur support and hope to hear from you in 2009!

Marina Vialtsina
(Realtor)
801-649-5883

Last Rates of 2008 - as of 12/29/2008

2008-12-29T10:18:00.001-08:00

Mortgage Rates as of 12/10/2008
30-year conventional: Loan $130,000-$175,000---5.00-5.375%
Loan $175,000-$230,000---4.875-5.25%
Loan $230,000 to max ($417,000) --- 4.75-5.125%

30-year FHA: Loan $90,000-130,000 --- 4.75--5.125%
Loan $130,000-170,000 -- 4.75-5.125%
Loan $170,000 to max -- 4.75-5.125%

15-year conventional: Loan $130,000-175,000 -- 4.875-5.25%
Loan $175,000-230,000 -- 4.75-5.125%
Loan $230,000 to max -- 4.75-5.125%

40-year conventional: Loan $130,000-175,000 -- 5.375-5.75%
Loan $175,000-230,000 -- 5.25-5.625%
Loan $230,000 to max -- 5.125-5.50%

30-year conventional jumbo: $417,000-$650,000 -- 5.875-6.25%
15-year conventional jumbo: $417,000-650,000 -- 6.00-6.375%

5/1 Arm cap 5/2/5: $130,000-175,000 -- 5.00-5.375%
$175,000-230,000 -- 5.00-5.375%
$230,000 to max -- 4.875-5.25%

3/1 Arm cap 2&6: 417,000-$650,000 -- 6.125-6.50%
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 6.25-6.625%

Is there anyway for a home buyer to access the money alloacable to the credit sooners than waiting to file their 2008 tax return?

2008-12-28T14:25:00.000-08:00

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downnpayment. Buyers should adjust their withholding amoun ton their W-4 via their employer or through their quarterly estimated tax payment. ISR Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qaulified purchase does not occur, then the individial would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Can I treat purchase as if it occured in 2008 or 2009?

2008-12-26T14:22:00.000-08:00

For a home purchase in 2009, you can treat as if it happened in 2008 or 2009. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit qould be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount

С праздниками!

2008-12-25T09:30:00.000-08:00

Здравствуйте, дорогие друзья, клиенты и родные!

Поздравляем вас с наступающими праздниками, желаем всего самого лучшего.

Как вы знаете новости о беременности были самыми важными для нас в 2008 году. Мы благодарим вас за поддержку и любовь.

Нам очень приятно, что вы читает новости на блоге, что участников в группе "русские в Salt Lake City" на "одноклассниках" (odnoklassniki.ru) за эти 8 месяцев стало 392 человека, что вы звоните когда есть вопросы и в течении работы вместе мы еще и успеваем стать друзьями...

Желаем вам нового начала в 2009, здоровья, счастья и всего самого хорошего.

Не забывайте нас:

Marina Vialtsina (SFRG) (Марина Въяльцина - Ваш Риэлтор) 801-649-5883
Jeremy Delicino - Криминальный и иммиграционныц адвокат, 801-364-6474, www.jeremydelicino.com

Happy Holidays, Friends and Family!

2008-12-24T02:33:00.000-08:00

I hope you have enjoyed my blog this year. And, I am happy to have this opportunity of sharing my knowledge with you. My husband and I wish all of you the best this coming year.

We had an amazing year. We hope you did too. Despite the economy being not so strong, we are hopeful once new President takes over.

The most important 2008 news for us is the baby on the way in January! Our boy's due date is President's Inuguration. I am so pregant right now that we cannot post any new pictures except the one we took in NYC in Nov., (during the 7.5th month of pregnancy). We are excited and nervous.

We thank all friends, clients and family for your love and support. We promise not to overwhelm you with baby news and pictures next year :)

Please let us know (in the remarks of this blog) how this year was for you.

Happy holidays to you and your families! We hope 2009 will be a great year for you.

We always appreciate your new business:

Marina Vialtsina (SFRG) Марина Въяльцина (Realtor)
801-649-5883

Jeremy Delicino (Criminal Defense Attorney) 801-364-6474 www.jeremydelicino.com

If you are qulified for the tax credit and buy home in 2009, can you apply the tax credit in 2008?

2008-12-23T14:18:00.000-08:00

Can you apply the tax credit against your 2008 tax return?

Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the ourchase occurred on Dec. 31, 2008. This means that the 2008 income limit (MAGI) applies and the elction accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns).

A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty thereby helping the buyer know whether the income limit will reduce their credit amount.

First Home Buyers' Tax Credit: credit or zero interest loan?

2008-12-22T14:14:00.000-08:00

It is a zero interest loan, because the tax credit must be repaid. Assuming an interest of 7%, that menas the home owner saves up to $4,200 in interest payments over the 15-year repayment preiod. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in lax liability in the year it is claimed.

Why must the money be repaid?

2008-12-21T14:11:00.000-08:00

Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

Does the credit need to be paid back to the government?

2008-12-20T14:06:00.000-08:00

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale.

For example, a home buyers claiming $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until 2010 tax return is filed. I fhte home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven

what is the difference between a tax credit and a tax deduction?

2008-12-18T13:47:00.000-08:00

A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is substracted from the amount of income that is taxed. Using the same example, assume the taxpayers is in the 15% tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer;s tax liability would be reduction by $1,125 (15% of $7,500), or lowered from $7,500 to $6,375

Tax Credit - Refundable...

2008-12-17T13:38:00.000-08:00

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owned)

FED cut the rate yesterday...

2008-12-17T12:16:00.000-08:00

Ball park rates for the start of the day. May be an exciting roller coaster ride so, I'll try to keep you posted on any significant ups or downs in the rates...

Have a great Wednesday

30-year conventional: Loan $130,000-$175,000---5.125-5.50%
Loan $175,000-$230,000---5.00-5.375%
Loan $230,000 to max ($417,000) --- 4.875-5.25%

30-year FHA: Loan $90,000-130,000 --- 4.75-5.125%
Loan $130,000-170,000 -- 4.75-5.125%
Loan $170,000 to max -- 4.75-5.125%

15-year conventional: Loan $130,000-175,000 -- 4.875-5.25%
Loan $175,000-230,000 -- 4.75-5.125%
Loan $230,000 to max -- 4.75-5.125%

40-year conventional: Loan $130,000-175,000 -- 5.50-5.875%
Loan $175,000-230,000 -- 5.375-5.75%
Loan $230,000 to max -- 5.25-5.625%

30-year conventional jumbo: $417,000-$650,000 -- 5.75-6.125%
15-year conventional jumbo: $417,000-650,000 -- 5.875-6.25%

5/1 Arm cap 5/2/5: $130,000-175,000 -- 6.125-6.5%
$175,000-230,000 -- 4.625-5.00%
$230,000 to max -- 4.625-5.00%

3/1 Arm cap 2&6: 417,000-$650,000 -- 5.75-6.125%
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 5.875-6.25% (same as last week)

Income Limit for first home buyers tax credit

2008-12-16T13:21:00.000-08:00

are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $7,500, the credir will equal 10% of the purchase price.

Monday Ballpark Rates for Refinancing (as we do have other factors to consider)

2008-12-15T16:35:00.000-08:00

30-year conventional: Loan $130,000-$175,000---5.00-5.375% (0.25% lower than last week)
Loan $175,000-$230,000---5.00-5.375% (slightly less)
Loan $230,000 to max ($417,000) --- 5.00-5.375%

30-year FHA: Loan $90,000-130,000 --- 5.125-5.5%
Loan $130,000-170,000 -- 5.00-5.375%
Loan $170,000 to max -- 5.00-5.375%

15-year conventional: Loan $130,000-175,000 -- 4.875-5.25%
Loan $175,000-230,000 -- 4.875-5.25%
Loan $230,000 to max -- 4.75-5.125%

40-year conventional: Loan $130,000-175,000 -- 5.375-5.75%
Loan $175,000-230,000 -- 5.375-5.75%
Loan $230,000 to max -- 5.375-5.75%

30-year conventional jumbo: $417,000-$650,000 -- 5.75-6.125%
15-year conventional jumbo: $417,000-650,000 -- 5.75-6.125%

5/1 Arm cap 5/2/5: $130,000-175,000 -- 4.75-5.125%
$175,000-230,000 -- 4.625-5.00% (same as last week)
$230,000 to max -- 4.625-5.00% (0.125% higher than last week)

3/1 Arm cap 2&6: 417,000-$650,000 -- 5.75-6.125%
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 5.875-6.25% (same as last week)

Please keep in mind that it is ball park rates only for refinancing. Also, even though there is anticipation of FED cutting rate tomorrow, it may not effect your mortgage rate because of rates are more dependable on bonds, the way market is doing overall (car industry bailout, political nominations, etc.)

Does the credit amount differ based on tax filing status?

2008-12-15T13:16:00.000-08:00

No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filling two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

example of how the partial tax credit is determined...

2008-12-14T12:23:00.000-08:00

just as an example, assume that a married couple has modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this limit. Diving $10,000 by $20,000 yeilds 0.5 When you substract 0.5 from 1.0, the result is 0.5 To determine the amount of the partial first time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. And, the result is $3,750

Here is one more example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Diving $13,000 by $20,000 yields 0.65. When you substract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit $2,625

Please remember that these examples are intended to provide a general idea only of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

Modified Adjusted Gross Income (MAGI) Limit for tax credit qualification

2008-12-13T11:50:00.000-08:00

If MAGI is above the limit, do you qualify for tax credit?

Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailble for individual taxpeyers with modifiyed adjusted gross income of more than $95,000 and for married taxpayers filling joint returns with an AGI of more than $170,000

Tomorrow, I will cover how partial credit is calculated...

Modified Adjusted Gross Income?

2008-12-12T11:44:00.000-08:00

Modified Adjusted Gross Income or MAGI is defined by the IRS. To find it, a taxpayer must first determine his/her "adjusted gross income" or AGI. AGI is total come for a year minus certain deductions (known as "Adjustments" or "above th eline deductions"), but before itemized deductions from Schedule A or personal exemptions are substracted. On Forms 1040 or 1040-A, AGI is the l ast number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of incomes icluding wages, salaries, interest income, dividents and capital gains.

To determine modified adgusted gross income (MAGI), add to AGI certain amounts such as foreighn income, foreign-housing deductions, student loan deductions, IRA-contribution deductions and deductions for higher-education costs.

Tomorrow, I will cover limits of MAGI for the purpose of first home buyers' tax credit...

I construct my own home...Do I still qualify for first home buyers' tax credit?

2008-12-11T11:39:00.000-08:00

let's say instead of buyering a new home from a home builder, you have hired a contractor to construct a home on a lot that you already own. Do you qualify for this tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or before April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

What type of home qualifies for the first home buyers' tax credit?

2008-12-10T11:36:00.000-08:00

Any home purchased by an eligible first home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previopus three years. This includes single family detached homes, attached homes like townhouses and condominiums, manufcatured homes (also known as mobile homes) and houseboats.

how to claim first home buyers' credit?

2008-12-09T11:32:00.000-08:00

Participating in the tax credit program is easy. You can claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first home buyer's test (covered yesterday)...I will cover income limits the next several days...

Tomorrow, I will explain what kind of homes do qualify for the tax...

Who is first home buyer?

2008-12-08T11:28:00.000-08:00

The law defines "first home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first time home buyer tax credit.

Ownership of a vacation hom e or rental property not used as a principal residence does not disqualify a buyer as a first home buyer.

Tomorrow, I will cover how to claim this tax credit...

First Time Home Buyer Tax Credit: Who is eligible?

2008-12-07T11:25:00.000-08:00

First time home buyers purchasing any kind of home - new or resale- are eligible for the tax credit. Top qualify for the tax credir, a home purcvhase must occur on or after April 9, 200+8 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

Tomorrow, I will cover who first home buyer is...

Mortgage Rates as of Saturday, 12/06/08

2008-12-06T11:15:00.000-08:00

30-year conventional: Loan $130,000-$175,000---5.25-5.625%
Loan $175,000-$230,000---5.25-5.625% (almost 0.5% lower than last week)
Loan $230,000 to max ($417,000) --- 5.125-5.375%

30-year FHA: Loan $90,000-130,000 --- 5.25-5.625% (up to 0.875% lower than last week)
Loan $130,000-170,000 -- 5.125-5.375%
Loan $170,000 to max -- 5.125-5.375% (up to 1% lower than last week)

15-year conventional: Loan $130,000-175,000 -- 5.25-5.625% (about 0.625% lower than last week)
Loan $175,000-230,000 -- 5.125-5.5%
Loan $230,000 to max -- 5.125-5.5%

40-year conventional: Loan $130,000-175,000 -- 5.625-6.00%
Loan $175,000-230,000 -- 5.625-6.00%
Loan $230,000 to max -- 5.50-5.875%

30-year conventional jumbo: $417,000-$650,000 -- 6.125-6.5% (up to 0.25% lower than last week)
15-year conventional jumbo: $417,000-650,000 -- 6.125-6.5% (almost 1% lower than last week)

5/1 Arm cap 5/2/5: $130,000-175,000 -- 4.625-5.00%
$175,000-230,000 -- 4.625-5.00% (about 0.625% lower than last week)
$230,000 to max -- 4.5-4.875%

3/1 Arm cap 2&6: 417,000-$650,000 -- 5.75-6.125% (about 0.375% lower than last week)
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 5.75-6.125%

First Time Home Buyer Tax Credit

2008-12-05T08:51:00.000-08:00

For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation proving a tax credit of as much as $7,500 for first time home buyers might just be the opportunity of a lifetime.

but like so many of the good things in left, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible.

Please read on about detailes of this legislature the next feww days...

Economic Calendar for the Week of November 24 – November 28

2008-11-28T08:43:00.000-08:00

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of November 24 – November 28

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact

Mon. November 24
10:00
Existing Home Sales
Oct
5.05M

5.18M
Moderate

Tue. November 25
08:30
GDP Chain Deflator
Q3
4.2%

4.2%
Moderate

Tue. November 25
08:30
Gross Domestic Product (GDP)
Q3
-0.6%

-0.3%
Moderate

Tue. November 25
10:00
Consumer Confidence
Nov
39.5

38.0
Moderate

Wed. November 26
10:00
Consumer Sentiment Index (UoM)
Nov
58.0

57.9
Moderate

Wed. November 26
09:45
Chicago PMI
Nov
38.5

27.8
Moderate

Wed. November 26
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA

2.2%
HIGH

Wed. November 26
08:30
Personal Consumption Expenditures and Core PCE
Oct
NA

0.2%
HIGH

Wed. November 26
08:30
Personal Spending
Oct
-0.7%

-0.3%
Moderate

Wed. November 26
08:30
Personal Income
Oct
0.1%

0.2%
Moderate

Wed. November 26
08:30
Jobless Claims (Initial)
11/22
NA

542K
Moderate

Wed. November 26
08:30
Durable Goods Orders
Oct
-2.5%

0.8%
Moderate

Wed. November 26
10:00
New Home Sales
Oct
450K

464K
Moderate

Thanksgiving!

2008-11-27T08:39:00.000-08:00

Thank you for reading my blog! I hope you enjoy it, and please let me know how I can improve it. And, what else you prefer to see on this blog.

I hope you are with your families this holiday, and please enjoy your Thanksgiving dinner!

Marina Vialtsina (Your Local Realtor)
801-649-5883

Save on Your Credit Score this Holiday Season

2008-11-26T08:38:00.000-08:00

With the economy slowing and holidays just around the corner, many consumers may be looking to credit cards to help them get through the heavy shopping season. While that may be a good short-term solution, you want to make sure you don't overlook the long-term impact on your credit rating. After all, the actions you take today could hang over your head for years to come--and may make it tough for you to get the home loan or car loan you want in the future.

To help you make sure you manage your credit cards--and your credit score--during the upcoming holiday spending season, follow these steps:

Double-check your card limits. Many credit card companies today have started lowering credit limits. That means you have less credit available, but it also may mean that your credit score is about to take a hit. That's because approximately 30% of your credit score is based on the amount you owe in relation to your available credit. So, if a credit card company cuts back your limit, you may find that you're suddenly almost maxed out. That's not a good sign for your long-term credit score rating.

Ask, pay down, or move around. If some of your credit limits have changed or are nearly maxed out, you can take a few steps to help alleviate the problem. First, consider simply asking for a higher limit to your card...not necessarily to use up with spending, but to allow more unused credit line to be available and therefore boost your credit score. You can also pay more money to the cards that are near the credit limit, if you can. Or, if you have cards with little to no remaining credit line, transfer some of the larger balances onto the cards with lower balances. That'll give you a more... well... balanced financial picture.

Leave home without it. One of the best tips for the holiday season is to: make a budget, identify specific items, and then leave home without your credit card. Instead, bring just enough cash to purchase the items on your list. That will help you resist the urge to impulse buy, and keep your credit card balances lower.

Pick a card... not just any card. If you can't bring cash, make a credit card plan. Identify specific items that you'll pay for on specific cards. By making a plan and spreading your purchases to different cards, you won't overspend and you won't risk running up one or two cards that are near the credit limit, which will hurt your credit rating.

Resist card offers at the counter. Retailers are famous for offering "savings" when you open a credit card. But those savings often don't outweigh the long- and short-term negatives. For one thing, opening a new account--or multiple accounts in a short period of time--can negatively impact your credit score. In addition, consumers often spend more than planned when a new card is suddenly available. So this holiday season, resist the temptation.

Stay active. If you have older cards that you don't use, make sure you keep them active. For one thing, some of those older cards help establish a longer history of positive credit. For another, the available credit on those older cards can help keep your credit score higher because it improves your overall debt-to-credit ratio. To keep those cards active, make sure you charge one or two items on them throughout the year... like, say, when you go shopping for the holidays. Then, pay them off when the bill comes in.

Always pay on time. Your payment record is a very large part of your credit score, so it's crucial that you have an idea how your holiday shopping will impact your credit card bills and that you make a plan to pay those bills on time. If you have trouble for any reason, contact your card companies right away to work out a plan that helps you pay down your debt... and save your credit rating from a huge hit.

D Word Could Change Direction of Rates

2008-11-25T08:32:00.000-08:00

"THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING." Oliver Wendell Holmes. And when it comes to the direction our economy may be moving, there was some surprising news from the Fed last week that the "Minutes" from their October meeting revealed.

After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline.

So what does this mean for home loan rates? Remember, home loan rates improve as Bond pricing moves higher - and more demand for Bonds would mean higher prices for Bonds. In the spring of 2003, when Alan Greenspan uttered the "D" word, deflation, Bonds rallied 400bp in just a few weeks, bringing a significant drop in home loan rates. Of course, the economy is different right now, but as more money may be headed towards Bonds in a deflationary environment, we could again see a significant improvement in home loan rates down the road.

On the inflation front, last week's Producer Price Index indicated that wholesale inflation plummeted last month - by the most since records began in 1947 - largely due to declines in energy prices. In addition, the Consumer Price Index showed that inflation at the consumer level fell by a record 1.0%, thanks again to lower costs of energy.

When it comes to the direction the economy is heading, the week did end with some hopeful news. Federal Reserve President Jeffrey Lacker said that an economic recovery could begin in 2009 as low interest rates, low energy prices, and less drag from the housing sector may shore up spending. In the meantime, Bonds and home loan rates spent much of last week trading near a key level of technical support called the 200-Day Moving Average, finally moving and staying above this level on Friday. As a result, Bonds and home loan rates ended the week unchanged to slightly better than where they began.

Mortage rate for Thanksgiving week

2008-11-24T08:21:00.000-08:00

30-year conventional: Loan $130,000-$175,000---6.00-6.375% (0.125% appr. lower than last week)
Loan $175,000-$230,000---5.875-6.25%
Loan $230,000 to max ($417,000) --- 5.75-6.125% (almost 0.25% lower than last week)

30-year FHA: Loan $90,000-130,000 --- 6.125-6.5% (up to 0.375% lower than last week)
Loan $130,000-170,000 -- 6.125-6.5%
Loan $170,000 to max -- 6.00-6.375% (up to 0.5% lower than last week)

15-year conventional: Loan $130,000-175,000 -- 6.875-6.25%
Loan $175,000-230,000 -- 5.75-6.125% (up to 0.25% lower than last week)
Loan $230,000 to max -- 6.625-6.00%

40-year conventional: Loan $130,000-175,000 -- 6.5-6.875%
Loan $175,000-230,000 -- 6.375-6.75%
Loan $230,000 to max -- 6.375-6.75%

30-year conventional jumbo: $417,000-$650,000 -- 6.375-6.75% (up to 1% lower than last week)
15-year conventional jumbo: $417,000-650,000 -- 7.125-7.5%

5/1 Arm cap 5/2/5: $130,000-175,000 -- 5.375-5.75%
$175,000-230,000 -- 5.25-5.625% (about 0.25% lower than last week)
$230,000 to max -- 5.25-5.625%

3/1 Arm cap 2&6: 417,000-$650,000 -- 6.5-6.875% (about 0.125% lower than last week)
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 6.5-6.875%

Mortgage Market Update (part III)

2008-11-23T08:46:00.000-08:00

Initial Jobless Claims continue to worsen as 542,000 filed this past week, far more than the 503,000 that was expected and the highest in 16 years. The four-week average of initial claims climbed by 15,750 to 506,500, the highest since January 1983. While the numbers are ugly, comparing them to previous markers is a bit unfair because there are more people today.

At 10am ET, the Philly Fed Index will be reported and while this may influence pricing in a typical market, we don't expect it to reverse the course of Mortgage Bonds.

Prices have barely peaked above the 200-day Moving Average. We will continue to float, but be mindful that things can change quickly. And a reminder about 2003, when Alan Greenspan came back and later said there is no threat of deflation - the refi-boom quickly ended and rates shot up dramatically higher. Stay tuned - we are living history.

Mortgage Market Update (part II)

2008-11-22T08:44:00.000-08:00

Deflation is when prices drop, mainly due to decreases in money supply and credit. And we are sure seeing problems with available credit right now. And with the economy slowing down, we are hearing some people say we are in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds because the fixed payment received would actually buy them more goods and services over time.

For those of you in the business a few years, you may recall back in the Spring of 2003, when Alan Greenspan uttered the "D" word. Mortgage Bonds rallied 400bp in a couple weeks, setting off an unprecedented refi-boom. Things are quite different right now, but stay tuned, should more investors wake up to the value of Mortgage Bonds, we could again see a significant improvement in prices. Get your clients informed and ready - all refi-runs have a limited timeframe. And this time will certainly be more challenging as there are fewer programs with stricter guidelines, but the biggest hurdle will be appraised values. Now would be an excellent time to run some filters on your database and see who would best be able to benefit from the window of opportunity when it hits.

Mortgage Market Update for this week

2008-11-21T08:42:00.000-08:00

MMG Update - Thursday, November 20, 2008 9:35am ET

Current Trend Direction: Sideways along 200-Day Moving Average for 13th consecutive session

Risks favor: Carefully Floating

Current Price of FNMA 6% Bond: $101.41, +16bp

Over the years, MMG has continued to help the mortgage community discover and understand the disconnect between the 10-year Note and Mortgage Bonds. In recent times that disconnect has been very clear to anyone in our world - but in the past 24 hours, the disconnect has been dramatic. Since yesterday the 10-year Note has risen by 285bp, while Mortgage Bonds have risen 12bp!!! Do you think the media knows this? NO. Use this to inform your relationship partners and clients of what really drives fixed rate mortgages.

So what happened? Yesterday the Fed Minutes from the October Fed Meeting were released. The Minutes expressed concern over the health of the economy and their future targets for employment and growth were lowered. But the big news was the "D" word. The Fed, after years of being concerned with inflation, now say they are concerned about deflation. This news shocked the financial markets, pushing Stocks sharply lower while directing enormous money flow into ultra-safe Treasury Notes.

(the story continues tomorrow...)

2009 Loan Limits release

2008-11-20T12:03:00.000-08:00

I would like to pass on to you about the 2009 conforming loan limit increases for the following counties. For all counties not listed the 2009 conforming loan limit of $417,000 will remain in place.

Salt Lake County

$600,300- 1-Unit
$768,500 - 2-Unit
$928,950 - 3-Unit
$1,154,450 4-Unit

Summit County

$600,300
$768,500
$928,950
$1,154,450

Tooele County

$600,300
$768,500
$928,950
$1,154,450

Davis County
$389,850
$499,050
$603,250
$749,700

Morgan County
36260
UT
$389,850
$499,050
$603,250
$749,700

Weber County
36260
UT
$389,850
$499,050
$603,250
$749,700

Wasatch County
25720
UT
$325,450
$416,600
$503,600
$625,850

Washington County
41100
UT
$278,300
$356,250
$430,650
$535,200

Bank of the West Rates for this week

2008-11-19T11:37:00.000-08:00

30-year conventional: Loan $130,000-$175,000---6.125-6.5%
Loan $175,000-$230,000---6.00-6.375%
Loan $230,000 to max ($417,000) --- 6.00-6.375%

30-year FHA: Loan $90,000-130,000 --- 6.5-6.875%
Loan $130,000-170,000 -- 6.375-6.75%
Loan $170,000 to max -- 6.25-6.625%

15-year conventional: Loan $130,000-175,000 -- 6.00-6.375%
Loan $175,000-230,000 -- 5.875-6.25%
Loan $230,000 to max -- 5.75-6.125%

40-year conventional: Loan $130,000-175,000 -- 6.5-6.875%
Loan $175,000-230,000 -- 6.375-6.75%
Loan $230,000 to max -- 6.375-6.75%

30-year conventional jumbo: $417,000-$650,000 -- 7.375-7.75%
15-year conventional jumbo: $417,000-650,000 -- 7.25-7.625%

5/1 Arm cap 5/2/5: $130,000-175,000 -- 5.5-5.875%
$175,000-230,000 -- 5.5-5.875%
$230,000 to max -- 5.375-5.75%

3/1 Arm cap 2&6: 417,000-$650,000 -- 6.625-7.00%
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 6.625-7.00%

Market Overcast

2008-11-18T11:31:00.000-08:00

What do you need a fancy suit for Charlie, you got no job to wear it to". From the 1984 movie, The Pope of Greenwich Village . And there are a lot of fancy suits not being used, due to the massive job losses of late.

The Labor Department reported that 240,000 jobs were lost in October, which was worse than the expected loss of 200,000 jobs. In addition, the Unemployment Rate jumped to 6.5%, up from last month's read of 6.1% and reaching the highest unemployment rate since 1994. And if the current numbers weren't bad enough, there were heavy downward revisions to August and September numbers, which erased an additional 179,000 jobs. So far in 2008, a total of 1.18 million jobs have been lost, with 651,000 job losses coming in just the past three months. Look for things to get worse before they get better, as the unemployment rate will likely top 7% soon.

Friday's Jobs Report was brutal and would typically nudge the Fed to cut their benchmark rates in an effort to spur on the economy. But with the Fed Funds Rate already at 1%, the Fed doesn't have much more room to cut. This means that Stocks, which worsen on poor economic news, will likely continue to struggle as a result.

Speaking of rate cuts, the Bank of England, the European Central Bank and a few other countries central banks all lowered interest rates last week to help their economies. The good news is that these cuts should have a positive effect on the US Dollar - and therefore will also help Dollar denominated oil prices stay near present levels.

With some of the negative economic news, Bonds did manage a huge, three-day 160bp rally in the middle part of last week, and Bonds and home loan rates were able to hang on to much of this improvement on Friday. As a result, Bonds and home loan rates ended the week nearly .25% better than where they began.

THE WEEKEND IS THE PERFECT TIME TO ENJOY SPENDING SOME OF YOUR HARD EARNED MONEY, BUT DID YOU KNOW THAT A SAFE DEPOSIT BOX MAY NOT BE THE BEST PLACE TO STASH YOUR TREASURES AND VALUABLES? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN MORE.

Mortgage Market Update

2008-11-17T11:29:00.000-08:00

MMG Update + By The Numbers - Monday, November 17, 2008 10:43am ET

Current Trend Direction: Sideways

Risks favor: Carefully Floating

Current Price of FNMA 6% Bond: $101.12, Unchanged

Bad news continues to infiltrate the markets today and Mortgage Bonds, currently near unchanged levels, are already far below where they were earlier. Stocks around the globe are lower fueled by worldwide recession fears. Japan became the latest economy to fall into a recession.

The New York Empire State Manufacturing Index came in near estimates at - 25.4, representing lowest reading since records began in 2001.

Banking giant Citigroup announced it will lay off 50,000 people on top of the 23,000 jobs they cut earlier this year. These heavy cuts would leave the second-largest US bank with about 300,000 jobs worldwide.

Our man on the Street, Joe Oakes, says that top executives at Goldman Sachs have decided to forgo their 2008 bonuses in the midst of one of the worst years on Wall Street in memory. Seven top executives have asked the compensation board committee to grant them no bonuses along with CEO Lloyd Blankfein. Blankfein's bonus in 2007 was $70 million...he'll have to struggle to make ends meet with that.

Industrial Production showed a 1.3% rise, higher than the -0.1% expected. September's -2.6% reading was revised lower to -3.7% making it the largest monthly drop in industrial production in over 60 years.

Mortgage Bonds continue to linger near the 200-day Moving Average for the 9th consecutive trading session. Bond prices attempted to rally earlier and moved up to touch exactly on the 200-day MA, but were turned lower as sell programs kicked in. For now we can float - but be ready to lock should pricing drift further to the downside and away from the 200-day MA.

This Is Not the Great Depression

2008-10-26T08:31:00.000-07:00

This Is Not the Great Depression

Comparing the current crisis to the Great Depression is just plain wrong, say historians and veteran financial experts.

"The nomenclature of the word 'crisis' has cheapened," says Roy Smith, a professor at New York University's Stern School of Business and former partner at Goldman Sachs .

“The Great Depression had thousands of banks failing and people losing their life savings, 25 percent unemployment and social unrest and tent cities of the poor," says Allan Sloan, Washington Post and Fortune magazine columnist.

"With just 6 percent unemployment, we are having a debate as to whether we are even in a recession," says Richard Sylla, professor of the history of financial institutions and markets at New York University.

Source: Reuters News, Robert MacMillan (09/22/08)

Cities Where Home Owners Spend the Most

2008-10-25T08:29:00.000-07:00

Cities Where Home Owners Spend the Most

Almost 15 percent of American home owners with a mortgage spend half of their income or more on housing costs, according to 2007 data released Tuesday by the U.S. Census Bureau. That is up from nearly 7.1 million in 2006.

Traditionally, the government and most lenders consider home owners spending 30 percent or more of their income on housing costs to be financially burdened. That definition now covers nearly 38 percent of American home owners with a mortgage – 19 million of them.

Here are the top 13 areas where the most mortgage holders spend more than 30 percent of their income on their homes. The information is an estimate based on an analysis of Census data by Harvard University’s Joint Center for Housing Studies.

Miami-Fort Lauderdale-Miami Beach, 58 percent
Stockton, Calif.,57 percent
Riverside-San Bernardino-Ontario, Calif., 55 percent
Cape Coral-Fort Myers, Fla., 55 percent
Los Angeles-Long Beach-Santa Ana, Calif., 54 percent
Modesto, Calif., 54 percent
San Diego-Carlsbad-San Marcos, Calif., 53 percent
San Francisco-Oakland-Fremont, Calif., 53 percent
Sarasota-Bradenton-Venice, Fla., 52 percent
Oxnard-Thousand Oaks-Ventura, Calif., 52 percent
San Jose-Sunnyvale-Santa Clara, Calif., 51 percent
Las Vegas-Paradise, Nev., 51 percent
Sacramento-Arden-Arcade-Roseville, Calif., 50 percent

Source: The Associated Press, Adrian Sainz and Alan Zibel (09/23/08)

Can Bankruptcy Law Reform Help?

2008-10-24T08:24:00.000-07:00

Can Bankruptcy Law Reform Help?

Even if the government buys hundreds of billions of dollars worth of mortgage-backed securities, it is unlikely that it will be able to protect many Americans from losing their homes, analysts say.

Financial experts say that 90 percent or more of subprime mortgages are held in trusts that have been sold to institutional investors around the world. Unless every investor agrees, the terms of a mortgage can’t be changed.

''We are literally spending hundreds of billions of dollars on subsidies for financial institutions,'' says Christopher Mayer, a professor of real estate finance and vice dean at the Columbia School of Business. ''This won't do anything to help the housing market. This plan is about buying mortgage-backed securities, not mortgages, and there is a big difference.''

House and senate Democrats as well as consumer advocates are demanding that the law approving the bailout include a change in the U.S. bankruptcy law to allow judges to adjust the terms of the mortgage on a primary residence.

''That is by orders of magnitude the best thing that can be done to keep people in their homes,'' says Eric Stein, senior vice president of the Center for Responsible Lending.

The banking and securities industries, meanwhile, are fighting the change, as they did when it came up with the housing bill that was adopted in July.

''Authorizing write-downs of mortgages by bankruptcy judges will increase the risks of mortgage lending at a time when the market is already struggling, and this will harm consumers,'' wrote Floyd E. Stoner, a top lobbyist for the American Banking Association, in a statement on Monday.

Source: The New York Times, Edmund L. Andrews (09/23/08)

WaMu's Home Loan Biz Led to Bank's Failure

2008-10-23T08:20:00.000-07:00

WaMu's Home Loan Biz Led to Bank's Failure

The Federal Deposit Insurance Corp. seized Washington Mutual Inc., one of the country's biggest banks, and then sold the Seattle-based thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion.

Because of WaMu's heavy mortgage-related losses and other risky debt, JPMorgan will write down the thrift's loan portfolio by roughly $31 billion, a figure that could change if the federal bailout plan is enacted and JPMorgan opts into it.

Problems in WaMu's home loan business became evident as far back as 2006, when the division recorded losses of $48 million versus net income of approximately $1 billion a year earlier.

Source: Associated Press; Marcy Gordon, Sarah Lepro, Madlen Read

30-Year Mortgage Rates Rise This Week

2008-10-22T08:16:00.000-07:00

30-Year Mortgage Rates Rise This Week

Freddie Mac's Primary Mortgage Market Survey, released Thursday, shows the 30-year fixed-rate mortgages rose to an average of 6.09 percent this week, with an average 0.7 point.

Rates are up from last week when they averaged 5.78 percent, but are lower than last year at this time, when 30-year rates averaged 6.42 percent.

Thirty-year fixed-rate mortgages are still more than 0.5 percentage points below this year's peak of 6.63 percent, set the week of July 24th.

15-Year Rates at 5.77%

The 15-year fixed-rate mortgage this week averaged 5.77 percent with an average 0.6 point, up from last week when it averaged 5.35 percent. A year ago at this time,15-year mortgage rates averaged 6.09 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent this week, with an average 0.6 point, up from last week when it averaged 5.67 percent. A year ago, the 5-year ARM averaged 6.15 percent.

One-year Treasury-indexed ARMs averaged 5.16 percent this week with an average 0.5 point, up from last week when it averaged 5.03 percent. At this time last year, the 1-year ARM averaged 5.60 percent.

Market Remains Soft

"The latest housing information for the third quarter continues to show some softness in prices and sales activity," said Frank Nothaft, Freddie Mac vice president and chief economist.

He noted that house prices fell 5.3 percent over the twelve months ending in July – weaker than the market consensus – according to the Federal Housing Finance Agency's purchase-only house price index.

Meanwhile, the August median sales price for existing single-family homes fell 9.7 percent over the year earlier, the largest 12-month drop since records began in 1968, according the NATIONAL ASSOCIATION OF REALTORS®.

Source: Freddie Mac

NAR Gets Behind Efforts to Restore Market

2008-10-21T08:14:00.000-07:00

NAR Gets Behind Efforts to Restore Market

The NATIONAL ASSOCIATION OF REALTORS® on Monday gave its support to the ongoing bipartisan efforts to finalize a financial bailout plan.

The proposed plan would allow the Treasury to buy questionable mortgage loans from U.S. and foreign-owned banks. At a potential cost of as much a $700 billion, the bailout package aims to repair U.S. financial markets and keep mortgages flowing to consumers.

After a busy weekend, Congress will continue to negotiate the plan this week.
"Obviously, there will be differences over some details, and we will have to work through them," President George W. Bush said Monday in a Washington Post article. "The whole world is watching to see if we can act quickly to shore up our markets and prevent damage to our capital markets, businesses, our housing sector, and retirement accounts."

Bush warned that failure to pass the bill quickly, which he said is possible if too many provisions are added, would have broad consequences far beyond Wall Street. "It would threaten small business owners and homeowners on Main Street," Bush said in the Washington Post report.

NAR said it believes government intervention is imperative to restore market liquidity.

“Many securities are being valued at pennies on the dollar due to the very high leverage ratio and illiquidity of certain mortgage-backed securities," NAR President Dick Gaylord said. "Unrealistically low valuations are paralyzing the balance sheets of financial institutions and have hindered liquidity flow."

Gaylord said NAR supports efforts to stabilize financial markets to allow rational valuation of assets, expedite refinancing and relief efforts for home owners, and other measures to reestablish a level of confidence in the housing credit markets.

"NAR will work diligently with Congress and the administration to achieve these goals as well as the broader goal of reforming the housing finance system,” he said.

Source: Washington Post, NATIONAL ASSOCIATION OF REALTORS®

Congress Divided on $700 Billion Bailout Plan

2008-10-20T08:08:00.000-07:00

Daily Real Estate News | September 26, 2008
Congress Divided on $700 Billion Bailout Plan

Congressional negotiators resumed meetings on Friday to revive or rework the proposed $700 billion financial bailout plan.

On Thursday, the word was that the group of lawmakers were near “fundamental” agreement on the bailout of the U.S. financial sector.

But that consensus fell apart Thursday night, with Democrats blaming the House Republicans for the apparent stalemate. Conservatives, however, have complained that the plan would be too costly for taxpayers and would be an unacceptable federal intrusion into private business.

President Bush is urging lawmakers to work through their disagreements and reach a consensus on the plan so the U.S. can avert an economic meltdown.

"There are disagreements over aspects of the rescue plan, but there is no disagreement that something substantial must be done," Bush said in a statement.

Source: Dow Jones International News (09/25/2008), Chicago Tribune (09/26/2008)

Marketing Perks of Traditional Open Houses

2008-10-18T13:12:00.000-07:00

Daily Real Estate News | October 10, 2008
Marketing Perks of Traditional Open Houses

Open houses are time-consuming and don't always lead to a buyer, but do the other benefits make them worthwhile? Many practitioners say yes, citing these perks:

They're open to everyone. Not only is the house open to prospective buyers and their friends, it also opens the property to other practitioners and to bankers. This openness can lead to sales, says Peggy Moriarty, associate broker at Daniel Gale Sotheby's International Realty in Cold Spring Harbor on Long Island.

More exposure for the home. A well-priced house that is open to all will draw customers away from the competition, says Seth Pitlake, a licensed sales associate with Prudential Douglas Elliman Real Estate in Merrick, N.Y.

Nothing beats an in-person showing. You can shop around on the Web, but seeing a home in person is what convinces a potential buyer to make an offer. "If I were a really serious buyer, I'd be looking at every single house in my price range in the area. A lot of people don't want to make appointments with a REALTOR®. They like the advantage of just going to an open house," says Moriarty.

Neighbors are often buyers. Sure, a lot of people show up to an open house out of pure curiosity. But that doesn't mean those people won't eventually buy. “It's amazing how many people move to another house in their own neighborhood, so these are also potential customers," says Regina Koller, communications and community relations coordinator for Coldwell Banker Residential Brokerage in Hauppauge, N.Y.

Source: Newsday, Daniel Bubbeo (10/10/08)

Web-Based Foreclosure Auctions Spark Controversy

2008-10-17T13:08:00.000-07:00

Web-Based Foreclosure Auctions Spark Controversy

Will the Internet replace public foreclosure auctions?

Public auctions of foreclosed properties began in the 19th century as a practical way to ensure there was no chicanery between lenders and public officials.

Next month, Duval County, Fla., will become the first county in the country to hold an Internet foreclosure auction, forgoing the traditional courthouse sale in the hope of attracting buyers from other areas.

If the Web-based process works out well, and other states sign on, it will be an earth-shifting change in the way foreclosures are handled.

Some real estate professionals think it is a bad idea.

"There are things about the title that you just can't find on the Internet," says Bruce Norris, CEO of the Norris Group, a real estate investment firm in Riverside. "They can't tell you whether you're buying a first mortgage or a second mortgage. If you're buying a second, then you don't own the home free and clear."

Source: The Los Angeles Times, William Heisel (10/05/08)

Treasury Rushes to Set Up Rescue Program

2008-10-16T13:05:00.000-07:00

Treasury Rushes to Set Up Rescue Program

The Treasury Department plans to hire five to 10 asset management firms that will set up a process to buy up to $700 billion of distressed mortgages and mortgage-related assets from financial firms.

One firm will be selected by Friday to provide custodial services such as tracking cash and assets. The asset management firms will be named next week.

Federal Reserve Chairman Ben Bernanke has said the government won't pay "fire sale" prices for the distressed assets, which would be less likely to achieve the bailout plan's objective of bolstering the financial sector.

Only companies with $100 billion in bonds and other fixed-income assets under management are eligible to apply to be asset managers, the department said, though future contracts will be opened to small businesses. Among those expected to bid are: Legg Mason Inc., Blackrock Inc. and bond manager Pacific Investment Management Co., or PIMCO.

Some anaylsts are concerned that the short timetable will result in the government overpaying for services. "We can't criticize them for rushing when we're telling them it's an emergency," said Steven Schooner, a law professor at George Washington University, but "there's no question when you rush, the contracts tend to be less well-drafted ... and lead to less disciplined cost control."

Source: The Associated Press, Christopher S. Rugaber (10/07/08)

30-Year Mortgage Rates Fall Under 6%

2008-10-15T13:03:00.000-07:00

Daily Real Estate News | October 10, 2008
30-Year Mortgage Rates Fall Under 6%

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 5.94 percent during the week ended Oct. 9, marking the first decrease in three weeks.

The 15-year fixed rate slipped to 5.63 percent from 5.78 percent the previous week.

Meanwhile, the five-year adjustable mortgage rate dropped a notch to 5.9 percent from 6 percent; and the one-year ARM dipped slightly to 5.15 percent.

100 most expensive ZIP codes

2008-10-14T01:02:00.000-07:00

Some Housing Markets Still Thriving

Prices are holding up nicely in the ZIP codes of the rich and famous.

Forbes magazine examined the top 100 most expensive ZIP codes in the United States and concluded that most saw strong price appreciation in the last 12 months.

Here are the top-10 most expensive ZIP Codes and the median home sales prices:

Fisher Island, Fla., Miami-Dade County, 33109. Median sales price: $3.85 million
Alpine, N.J. Bergen County, 07620, $3.59 million
Mill Neck, N.Y. Nassau County, 11765, $3 million
Newport Coast, Calif., Orange County, 92657, $2.8 million
Water Mill, NY, Suffolk County, 11976, $2.72 million
Atherton, Calif., San Mateo County, 94027, $2.7 million
Santa Barbara, Calif., Santa Barbara County, 93108, $2.7 million
Wainscott, N.Y., Suffolk County, 11975, $2.56 million
Rancho Sante Fe, Calif., San Diego County, 92067, $2.47 million
Beverly Hills, Calif. Los Angeles County, 90210, $2.41 million

Pending Home Sales Up Sharply

2008-10-13T01:00:00.000-07:00

Daily Real Estate News | October 8, 2008
Pending Home Sales Up Sharply

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the NATIONAL ASSOCIATION OF
REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Improved Affordability

Lawrence Yun, NAR chief economist, says home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island, and the Washington, D.C., region,” he says.

“The improvement also reflects the drop in mortgage interest rates after the government takeover of Freddie Mac and Fannie Mae. It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales", adds Yun.

The PHSI in the West surged 18.4 percent to 109.5 in August and remains 37.8 percent above a year ago. In the Northeast the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96.0 but is 2.1 percent below August 2007.

Yun notes the unusual timing of contract activity in August. “Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie,” he said. “August shows some unleashing of pent-up demand before the credit crisis accelerated in September.”

He cautioned that the sampling size for pending home sales is smaller than the track on existing-home sales, so there is more volatility in the forward-looking series. “We need to see just how much of this gain holds up,” Yun adds.

NAR President Richard F. Gaylord says despite all the turmoil in world financial markets, home mortgages are available. “The recently enacted economic stimulus package should help housing by gradually freeing the flow of credit," he says.

Yun now expects growth in the U.S. gross domestic product (GDP) to contract for two consecutive quarters, in the fourth quarter of this year and the first quarter of 2009, before expanding in latter part of 2009 as the housing market begins a steady improvement.

Existing-home sales projected to rise next year

Looking at middle-ground assumptions, existing-home sales are forecast at 5.04 million this year and 5.41 million in 2009. Following national declines of 5 to 8 percent in 2008, home prices are projected to increase 2 to 3 percent next year.

New-home sales should total around 503,000 this year and 471,000 in 2009. Housing starts, including multifamily units, are likely to fall 28.2 percent to 973,000 units this year, and come in around 843,000 in 2009 as builders continue to clear the accumulation in inventory.

The 30-year fixed-rate mortgage will probably average 6.1 percent in the fourth quarter and rise gradually to 6.6 percent by the end of 2009. NAR’s housing affordability index is expected to average 18 percentage points higher this year than in 2007.

The unemployment rate is projected to average 6.4 percent in the fourth quarter and then average 6.6 percent in 2009. Inflation, as measured by the Consumer Price Index, is estimated at 4.0 percent for 2008 and 2.0 percent next year. Inflation-adjusted disposable personal income is forecast to grow 1.7 percent this year and 1.0 percent in 2009.

First-Time Buyer Tax Credit: A Reason to Buy Now

2008-10-10T13:23:00.000-07:00

Daily Real Estate News | October 8, 2008
First-Time Buyer Tax Credit: A Reason to Buy Now

The homeownership tax credit that the federal government created earlier this year is a hard-won tool at your disposal to encourage your customers to jump off the fence and get into the home buying market.

When you combine the tax credit with today’s continuing low interest rates, large selection of for-sale inventory, and low home prices, many of the pieces are in place for your customers to buy now.

How the Tax Credit Works

The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.

It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if your customers wait to buy in the first half of 2009 they can take the credit on their 2009 tax return.

The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500.

Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.

Any house is eligible as long as it’s a primary residence and is in the United States.

Buyers Have 15 Years to Pay Back

To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

There’s one restriction on the type of financing that your customers can use if they plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if your clients are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.

Be a Resource for Clients

NAR Government Affairs has created two helpful documents that you can share with your clients to help them learn more about how the tax credit works. The documents are on downloadable and printable PDFs:
First-time home buyer tax credit chart
First-time homebuyer tax credit FAQ

The IRS Web site also offers tax-credit guidance in an article that provides answers to many frequently asked questions.

And don't forget about REALTOR.org, which is a great source for more information on all aspects of the Economic Stimulus Bill passed July 30.

Bank of America Will Modify Troubled Loans

2008-10-10T12:57:00.000-07:00

Bank of America on Monday said it is launching a "home retention program" on Dec. 1 to modify troubled mortgages for nearly 400,000 customers of Countrywide Financial Corp.

Bank of America acquired Countrywide on July 1.

The program, which can reduce up to $8.4 billion in interest payments and principal, was developed in partnership with state Attorneys General to help borrowers that financed their homes with subprime loans or adjustable rate mortgages.

The goal is to "help as many Countrywide customers as possible stay in their homes," says Barbara Desoer, president, Bank of America Mortgage, Home Equity and Insurance Services.

The centerpiece of the program is a proactive loan modification process to provide relief to borrowers who are seriously delinquent or are likely to become seriously delinquent as a result of rate resets or payment recasts.

Fed orders emergency rate cut, other banks follow

2008-10-08T07:59:00.000-07:00

from Yahoo News:

WASHINGTON - The Federal Reserve, acting in coordination with other global central banking authorities, cut a key U.S. interest rate by half a percentage point Wednesday to steady a teetering economy.

The Fed reduced its key rate from 2 percent to 1.5 percent.

In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent, while the European Central Bank sliced its rate to 3.75 percent.

Other central banks also taking part include the banks of Canada, Sweden, and Switzerland.

China also cut its key interest rates Wednesday for a second time in less than one month to stimulate slowing economic growth amid the global credit crisis.

The Fed's last rate cut was in late April, capping one of the most aggressive rate-cutting campaigns in decades as it scrambled to shore up the faltering economy. After that, the Fed moved to the sidelines, holding rates steady as zooming food and energy prices during that period threatened to ignite inflation. In the past few months, energy prices have retreated from record highs reached in mid-July, giving the Fed more leeway to drop rates again.

Lehman Brothers, the country's fourth-largest investment bank, filed for bankruptcy protection. A weakened Merrill Lynch, deciding it couldn't go it alone anymore, found help in the arms of Bank of America. American International International Group was thrown a financial lifeline. And, the last two investment houses — Goldman Sachs and Morgan Stanley — decided to convert themselves into commercial banks to better weather the financial storm. The number of banks that have failed this year are up sharply from last year. On Friday, Wachovia Corp. said it will be acquired by Wells Fargo & Co. wiping out Wachovia's previous plan to sell its banking operations to rival suitor Citigroup Inc.

New Listing Commission Option

2008-10-07T10:20:00.000-07:00

Did you know that you have option how to pay commissions?

Now when you list a property, you have the option of stating whether a commission is based on the gross or net sales price. The net sales price of a property is the gross sales price minus any concessions from the seller, and, if the home is a new construction, buyer upgrades. To fit with current real estate trends, this new policy gives the seller the option of not paying commission on money they aren't receiving.

Appraisal Independence

2008-10-06T07:21:00.000-07:00

Congresswoman Biggert promotes Appraisal Independence
In her Op-Ed piece for The Hill newspaper, Congresswoman Judy Biggert (R-ILL) argues for housing reform, including greater support for key appraisal legislation.

Additionally, Congress must address the shortcomings of the home-buying process that have contributed to the rapid rise in fraud and predatory lending. Without greater transparency and independence in the appraisal process, consumers will continue to be targets, and investors will continue to lack confidence in the value of financial products like mortgage-backed securities. When the integrity of the appraisal process is in question, everyone loses.
To address this issue, Rep. Paul Kanjorski (D-Pa.) and I have joined with Sens. Bob Casey Jr. (D-Pa.) and Mel Martinez (R-Fla.) to develop a bipartisan, bicameral proposal. H.R. 3837 and its companion S.2860, the Fair Value and Independent Appraisal Act, will add important disclosure requirements, prohibit deceptive practices and improve appraisal standards. The Senate should quickly act on this proposal, which passed the House on Nov. 15 as part of H.R. 3915.

While it is unlikely that Congress will act on this legislation by the end of the year, it is not out of the realm of possibility. And with housing still a top issue for the nation, I suspect there will be some activity in the coming months. The extent of that activity; however, remains to be seen.

Posted on September 16, 2008 12:32 PM | Permanent Link

Taking Charge

2008-10-05T07:15:00.000-07:00

by Lawrence Yun, Chief Economist, NAR Research

You wake up one Monday morning to find Fannie Mae (FNMA) and Freddie Mac (FHLMC) no longer exist - that was a scenario that NAR staff - and no doubt a number of other economic, financial and housing market watchers - have been contemplating over the past month. Well, the government did, in effect, take over Fannie and Freddie. And guess what - on the Monday morning after the official announcement, the sun still came out. The question is: will this mean darker skies for housing and our economy?

Predictions
The federal government had no choice because the capital situation of two organizations was insufficient to face the upcoming realities of rising mortgage defaults. We will now have to wait and see what impact the government's action will have. I think we can make some predictions.

First of all, it is likely that mortgage rates will trend down over the short run. But how much of a decline will depend on how actively the government - more specifically the Treasury Department and the new Federal Housing Finance Agency (FHFA) - loosens the mortgage liquidity spigot. For over the next 12 months at least, the FHFA has the authority to purchase more than the normal amount of mortgages from lenders to put into its portfolio holdings. That means all conforming loans, including the newly conforming jumbo loans up to $625,000, will qualify for purchase by the FHFA. That will help drive down mortgage rates. In about two years' time, when the housing recovery is assumed to be well underway, the government will trim its mortgage portfolio. Then Fannie and Freddie will be completely restructured. It will be up to the next administration and Congress to determine that structure. And be assured that NAR will make its 1.3 million voices heard during those discussions.

The credit spread between the 10-year Treasury and the 30-year mortgage rates has greatly widened in recent months due to the uncertainties that surrounded the fate of Fannie and Freddie. The typical historic spread has been about 150 to 180 basis points. That means if the 10-year Treasury yield is 4%, then the 30-year mortgage would be about 5.5% to 5.8%. Recently though, we have seen the spread at 250 to 300 basis points. With the government's takeover of Fannie and Freddie, the spread will surely narrow and hence result in lower mortgage rates. That is good for the housing market.

The Forecast

2008-10-04T07:12:00.000-07:00

U.S. Economic Outlook

(PDF: 28KB)The recent action by the federal government in "taking over" the two GSEs could be the shot in the arm that the housing market needs.
http://www.realtor.org/research/reinsights/forecast

The Forecast: Charts(PDF:180KB)With the government's takeover of Fannie and Freddie, the spread between 10-year Treasuries and the 30-year fixed mortgage rate will surely narrow and hence result in lower mortgage rates.
A "Shot in the Arm" for the Housing Market
By Lawrence Yun, NAR Chief Economist

Home sales continue to edge up and down. Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings. Pending home sales (see page 3) declined in July, after rising in June. But the recent action by the federal government in "taking over" the two GSEs could be the shot in the arm that the housing market needs.

Even with the latest pullback in contract signings, pending home sales have been fairly stable on a national basis for nearly a year, with dramatic local market differences continuing. Contract signings have been steaming ahead, nearly doubling in activity from a year before in several California and Florida markets. The outer Washington, D.C., exurbs also are coming around very strongly. That bodes well for future home sales nationally.

Another factor is the attractiveness of FHA-mortgages. FHA is taking a more active role in serving a broad cross-section of home buyers, but it will take some time to fully get up to speed. There's been a surge in FHA mortgage applications. Interestingly, many people in high-cost areas aren't familiar with FHA programs. REALTORS® should be aware that they are one of the major sources of information about mortgage programs for their clients. They should familiarize themselves with this increasingly valuable program.

Still, there are many ambiguities in the marketplace. The economy is producing more, yet job cuts continue. GDP growth in the second quarter of this year was 3.3 percent. In fact, the last time GDP growth was negative was in the fourth quarter of last year - and that was before the unprecedented surge in oil prices. In spite of relatively healthy GDP growth, 84,000 non-farm payroll jobs were shed in August - more than most analysts (including me) expected. And those most recent job cuts have been across the board in all sectors.

Those job cuts help explain anemic consumer confidence. While consumer confidence rose in August, the Conference Board reports that its consumer confidence index stood at 56.9 for that month.. The reading suggests that for most Americans, the economy is basically in "neutral." A first-time home buyer tax credit - one of the provisions of the economic stimulus legislation passed and signed into law earlier in the summer - and lower interest rates on newly conforming jumbo loans favors consumers. But buyer confidence remains low. Even with the Treasury Department's direct intervention in the secondary mortgage market, it is unclear if we will go back to sound normal underwriting criteria, or if it will remain overly stringent. The housing market outlook is very cloudy.

We often cite the real estate professional's mantra: all real estate is local. But economic conditions are also local. The speed and timing of a housing and economic recovery depends on local market conditions. Based on local market fundamentals, I expect robust home price growth in places like Denver over the next two years. Up until the weekend of September 12, I would have included Houston in that list as well, but given the recent damage wrought by Hurricane Ike we'll have to watch the Houston market closely to see how fast its economy recovers from the storm. In addition, the frequent reporting of multiple bids in California and Florida may be signaling a bottom in home prices in those areas. Nationally, home sales are stable now but are expected to increase in coming quarters.

Impact of Fannie/Freddie Takeover

2008-10-03T07:09:00.000-07:00

Events in the capital markets during September have clearly overshadowed the mortgage delinquency and foreclosure report, which came out prior to the news about the federal government takeover of Fannie Mae and Freddie Mac. The obvious question arising from these events centers on the impact that this move will have upon the mortgage industry and the performance of existing and future loans.

While there are still a large number of details left to be resolved, much depends on the government's degree of involvement in Fannie and Freddie. Assuming that the Treasury and the Federal Housing Financed Agency (FHFA) increase liquidity in the two enterprises, we can expect mortgage rates to decline in the short run. FHFA can accomplish this through its authority to purchase a larger amount of mortgages, including the newly conforming jumbo loans (up to $625,000). In the long run, the performance of the mortgage market will likely be conditioned by the restructuring of Fannie and Freddie and the recovery of the housing market.

Mixed Regional Results

2008-10-02T07:06:00.000-07:00

There were differences in delinquency and foreclosure rates by state. While delinquency rates rose across the country from the first quarter to the second quarter of 2008, not all states experienced the same pattern.

The top five states with the highest quarter-over-quarter increase in delinquency rates were Delaware (104 basis points), Mississippi (103 basis points), Massachusetts (100 basis points), Maryland (96 basis points), and Indiana (92 basis points). On the flip side, the states with the smallest change in delinquency rates were South Dakota (20 basis points), North Dakota (27 basis points), Wyoming (32 basis points), Colorado (33 basis points), and Oregon (34 basis points).

In terms of foreclosure rates, the national numbers masked surprising quarter-over-quarter regional changes. The rate of foreclosure starts dropped in 12 states from the first to the second quarter of 2008. Massachusetts recorded the largest decline-33 basis points - followed by Maryland (a 9 basis point decline) and Mississippi (7 basis point decline). The other states with declines in foreclosure starts were Nebraska, Arkansas, Texas, South Dakota, Missouri, Colorado, Montana, Michigan, and Louisiana.

Meanwhile, foreclosure inventory rates also dropped in 17 states over the first two quarters of 2008. Wyoming posted the greatest drop-24 basis points - followed by Massachusetts (declining 21 basis points), and Mississippi (a decline of 20 basis points). Foreclosure inventory rates also declined in Alabama, Arkansas, Indiana, Iowa, Kansas, Louisiana, Michigan, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, and Texas.

These positive changes were nonetheless offset by foreclosure rate increases in states like Florida, Nevada, Arizona, California and New Jersey. These states experienced significant increases from the first to the second quarter of 2008, both in terms of foreclosure starts and foreclosure inventory rates. Florida posted the highest figures, with a 139 basis point jump in foreclosure inventory and a 35 basis point increase in foreclosure starts. The changes were similar in the other four states-Nevada (80 basis point change in inventory, 31 basis point change in starts), Arizona (68 basis point change in inventory, 29 basis point change in starts), California (73 basis point change in inventory, 23 basis point change in starts) and New Jersey (39 basis point change in inventory, 14 basis point change in starts).

A mix of Good and Bad News (Foreclosures)

2008-10-01T07:04:00.000-07:00

Nationally, the rate of foreclosures started was up 20 basis points compared with that reported in the first quarter of 2008. In the second quarter of this year, the foreclosure starts rate increased from 0.54 percent to 0.67 percent for prime loans from a year ago. Foreclosures on subprime loans rose from 4.06 percent to 4.70 percent and from 0.50 percent to 0.65 percent for VA loans. FHA loans also posted an increase of 16 basis points in foreclosure starts -- from 0.87 percent to 1.03 percent. That increase follows a decline posted in the first quarter rate.

The foreclosure inventory rate also increased nationally for all loans, from 2.47 percent in the first quarter of 2008 to 2.75 percent in the second quarter of 2008. On a year-over-year basis, the foreclosure inventory rate increased 135 basis points (from 1.40 percent in the first quarter of 2008). The foreclosure inventory rate rose for all loans except FHA loans. The foreclosure inventory rate rose 20 basis points for prime loans, 107 basis points for subprime loans, and nine basis points for VA loans. Foreclosure inventory rates for FHA loans actually experienced a 16 basis point drop.

A mix of Good and Bad News

2008-09-30T07:01:00.000-07:00

In Focus
Second Quarter Mortgage Delinquency and Foreclosures Rates:

A Mix of Good and Bad News
By George Ratiu, Research Economist

There was good news and bad news on the home mortgage delinquency and foreclosure front earlier this month. Data for the second quarter of 2008 from the National Delinquency Survey by the Mortgage Bankers Association shows an increase in delinquency and foreclosure rates. On the positive side, however, the figures also point to some marked improvements. Delinquency rates for subprime, FHA and VA loans dropped from last quarter. Foreclosure inventory rates for FHA loans also declined on a quarterly basis. Furthermore, the data also recorded decreases in foreclosure rates for several states.

Delinquencies
The overall delinquency rate increased from 6.35 to 6.41 percent. However, the increase was driven by a jump in prime loan delinquencies - an increase of 22 basis points, up from 3.71 percent to 3.93 percent.

However, seasonally adjusted delinquency rates provided some positive highlights. The delinquency rates for all other loans dropped. Rates for subprime loans decreased 12 basis points (from 18.79 to 18.67 percent). The decline follows a 148 basis point increase reported in the first quarter. Declines were also noted for loans guaranteed through the two major government mortgage programs. Delinquency rates fell 40 basis points for VA loans (from 7.22 percent to 6.82 percent), while the rates for FHA loans declined from 12.72 to 12.63 percent.

Still, on a year-over-year basis, delinquency rates increased across the board. Seasonally adjusted delinquency rates moved up 120 basis points for prime loans, 385 basis points for subprime loans, five basis points for FHA loans, and 67 basis points for VA loans from the second quarter of 2007.

Tips to raise your credit score (by Tree Lending)

2008-09-29T06:56:00.000-07:00

A better credit score can help you get a better loan rate.
Your credit rating can help determine whether you get a loan and what interest rate you pay, so getting your score as high as possible can save you big bucks.

The difference in interest rates for mortgage loans is nothing to sneeze at. Someone with a FICO score, or credit rating, of 760 to 850 could pay $188 less per month on a $216,000 30-year fixed-rate mortgage than someone with a score of under 658, according to MyFICO.com. The amounts are based on interest rates of 5.99 percent for the higher rating and 7.31 percent for the lower rating.

Credit scores are grouped into five basic categories, according to MyFICO.com. In general, about 35 percent of the score is based on your payment history, about 30 percent on how much you owe, 15 percent on the length of your credit history, 10 percent on new credit and 10 percent on types of credit used. The mix can vary depending on your situation.

Credit ratings evolve over years, but there are ways to raise your credit score a few points at a time.

Pay your bills on time.
“I’m not sure a lot of people understand that,” said Jack Guttentag, professor of finance emeritus at the Wharton School at the University of Pennsylvania and the man behind The Mortgage Professor Web site (mtgprofessor.com). “They always say, ‘I always pay it eventually.’ ”

Pay more than the minimum on your credit cards every month.
Your score could go up a few points as your credit card balances go down. Just a few larger payments can help if you previously were paying the minimum.

Limit the number of new credit-card accounts you open.
An exception is for people who are trying to re-establish credit after a bankruptcy or other financial crisis, according to MyFICO.com. “Opening new accounts responsibly and paying them off on time will raise your score in the long term,” says the Web site, which is published by Fair Isaac, the company that invented the FICO score.

Keep your balance well below the credit limit on revolving accounts like credit cards.
Your credit score will likely be higher if you have small balances on four or five credit cards (as an example) than larger balances on two or three cards, especially if the balances are close to the credit limits, Guttentag said.

Pay off any uncollected items.
Your credit score is being hurt if you’re withholding payment because of a dispute with the lender, no matter how “right” you are.

And finally, always remember that paying down your revolving credit, or credit cards, is the best way to improve the portion of your credit score that looks at how much you owe.

FHA Seller Funded Downpayment Assistance May not be Dead

2008-09-28T06:53:00.000-07:00

The House Financial Services Committee adopted H.R. 6694, legislation designed to reauthorize and reform down payment assistance programs that the Bush Administration banned in July.

A last-ditch effort to head off the Oct. 1 ban on the use of seller-funded down-payment assistance with FHA-backed loans is picking up steam as a compromise bill that would mend rather than end the practice of down payment assistance.

HR 6694 would allow qualified borrowers with credit scores of 680 or above to use seller-funded down-payment assistance on FHA-backed loans. Borrowers with scores between 620-680 will be subject to risk-based pricing and higher insurance premium fees.

But the bill still needs to be approved by Congress and the President.

Today's committee vote was a positive step toward preserving down payment assistance, but it's far from over. Now more than ever, members of Congress need to know that Americans are watching their vote on H.R. 6694.

I encourage everybody who wants to see seller assisted down payment assistance preserved to tell their representatives in the House and the U.S. Senate that a vote for H.R. 6694 is a vote for the next generation of homeowners.

What does it take to raise a borrower's credit score so that they can qualify for these loans? (see tomorrow)

REPC Section 10.2(b)

2008-09-27T06:49:00.000-07:00

The current Utah REPC - Real Estate Purchase Contract has a section (10.2b) that covers the mechanical systems of the home; 10.2b states that these systems will be in working order and fit for their intended purpose.

The changes to the Utah REPC will basically eliminate this section in September 2008.When these changes take place, the buyer will not be protected if any of these items quits working before they close on their home purchase.

Instead you can GET A HOME INSPECTION! Please call me and I will refer you to inspectors who start only at $199.00!

In addition, you can also get following tests:

$125.00 - RADON TESTING W/OUT INSPECTION
$135.00 - METHAMPHETAMINE TEST
$225.00 - MOLD TESTING

Market Commentary

2008-09-26T06:43:00.000-07:00

World stock markets have sold off on the news of intensified financial pressures over the weekend on Wall Street. International financial crises have happened several times before and as the chart below shows, the initial losses do not have to have long lasting consequences to US equity investors. The table displays the Dow Jones Industrial Average’s returns approximately six months after the five major financial crises over the past two decades. This includes the US market’s one day drop of approximately 25% in October of 1987. Most experts point to the growing and timely coordination of reactions by the global bankers and government officials for the positive results. The actions taken by US institutions over the past year to get out ahead of the housing-induced US credit crisis have been reinforced by foreign central banks. As witnessed by last weekend’s actions, the Federal Reserve and US Treasury Department have been especially creative and forceful in helping maintain the confidence of worldwide investors. Reduced interest rates, new access to government loans, and coordinated buyouts of problem companies have all been examples of proactive involvement by global banks. By all reports, governmental bodies are ready to provide continuing leadership and if appropriate, financial support to prevent serious longer term effects to the global financial markets.

Six-Month Financial Crises Period Returns

Event

Reaction Dates Immediate
DJIA
% Gain/Loss DJIA %Gain/Loss
126 Market Days After
Reaction Dates
Financial Panic of ‘87 10/02/87-10/19/87 -34.2 15.0
U.K. Currency Crisis 9/14/92-10/16/92 -6.0 9.2
Russia, Mex., Orange Cnty. 10/11/94-12/20/94 -2.8 20.7
Asian Stock Market Crisis 10/07/97-10/27/97 -12.4 25.0
Russian LTCM Crisis 8/18/98-10/08/98 -11.3 33.7
Average Return -13.3% 20.7%
Source: Ned Davis Research 9/08

History suggests that short-term financial crises often present timely investment opportunities. Even longer-term investors can take advantage of market disruptions to enhance overall performance in the eventual rebound that always comes.

Prepared by: Martin J. Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network

The views are those of Martin Cosgrove, Director of Investment Research, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
While diversification my help reduce volatility and risk, it does not guarantee future performance.

ING Financial Partners, Inc, its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold or sell a position in the securities mentioned herein.
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Letter to Realtors regarding Outlook for Real Estate, and Update on Government Intervention

2008-09-25T06:38:00.000-07:00

Dear Fellow REALTOR®:

I know many of you are concerned about the troubled financial markets and are wondering how the federal government’s actions will help resolve the crisis. Here is the latest information on what is happening in the housing market and our position on the government’s plans to rescue Wall Street.

First, take a few minutes to watch today’s President’s Podcast, featuring my latest interview with NAR Chief Economist Lawrence Yun. Although the video was shot before the government takeover of Fannie Mae and Freddie Mac, Lawrence provides valuable perspective on where the housing market is heading in 2009.

http://www.realtor.org/about_nar/presidents_report/_podcast_archive/presidents_podcast_marketoutlook_20080923
Second, please read Lawrence’s September 22nd commentary, which explains the reality behind the government’s proposed “investment” in the financial markets and what’s at stake for homeowners and taxpayers.

http://www.realtor.org/research/commentary_700_billion

Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.

http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument

As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues.

Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.