First Time Home Buyers should NOT worry about the $8,000 Federal Tax Credit - WHY:

(1) Once this stimulus package ends (April 30) - prices will drop - in some cases more then the $8,000 you would have gotten from the feds - because many ill prepared buyers will leave the market - hence sellers will have to reduce prices to attract these buyers back into the market;

(2) Sellers that were pricing their homes slightly above their mortgage balance will now have to do a Short Sale because of the price reduction in the market - even their mortgage companies will be encouraging them to Short Sale in order to prevent a foreclosure; and

(3) There will be an attempt by the US Dept of Treasury to stimulate Short Sales in order to slow down the foreclosures across the USA starting in April 2010 by offering sellers "relocation assistance" of at least $1,500 to help them move out of the house that is under water or upside down because they owe more then the house is worth.

So once again, this is a great market for first time home buyers working with the right real estate professionals that understand the market.

Read more about Short Sales on www.Facebook.com/GautierRealtors

THE NEW RESPA RULE SEMINAR

Friday, December 11, 2009
10:00 a.m. - 12noon
Must Register Online

The Federal Building
600 Arch Street, 2nd Floor 
Philadelphia, PA  19107

The Philadelphia Home Ownership Center is hosting a two hour seminar and update on the new RESPA Rule. The Department of Housing and Urban Development (HUD) is requiring that loan originators provide borrowers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a revised HUD-1 Settlement Statement. Also discussed will be elimination of FHA cap on origination fees. 

The new RESPA Rules were published November 17, 2008 and will take full effect on January 1, 2010.  Guest Presenter is Ivy Jackson, Director of the Office of RESPA and ILS, Department of Housing and Urban Development, Washington, DC.

Register Here
Please bring a Photo ID  
Space is Limited • Register Early!

Please be aware that we do not know when  there will be a training session in NY on RESPA.  I would strongly suggest you send someone to attend just in case a NY session does not happen before the year is out.

A couple of things you should know:                                 

1. Deadline for registration and questions is a firm close of business on December 4, 2009.
2. Due to the expected large audience, no questions will be answered from the floor. All questions must be submitted on-line. Using an ID given to them at registration, registrant's may re-log into the registration site to ask additional questions.
3. This is not a webinar and will not be carried by telephone.
4. The Register  Now link is sticky. Give it time to open. 
5. If you should have a problem with the link in the attached flyer. The actual registration weblink is:

Register Here or copy and paste this link: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=314&update=N    

Please share with your colleagues and staff. See you there!

If you want to received FHA Up Dates - Please send your email to the following contact person:

Migdalia Murati Sr. Account Liaison
FHA Office of Business Development
1 Newark Center 1085 Raymond Blvd., 13^th Floor
Newark, New Jersey 07102
Phone: 973.776.7316
Cell: 973.204-8255
Fax: 973.645-6423
migdalia.murati@hud.gov
www.FHA.gov

As you may know, last night the Senate reached a deal on extending and expanding the home buyer tax credit, and they plan on attaching it to the unemployment insurance bill. You can see a copy of the bill here. The tax credit provisions begin on p. 14.

Near as we can tell at this moment, the process from here will go like this:

1. There will be a cloture vote at 5 pm on Monday in the Senate on the new Baucus substitute. If it succeeds, it takes 30 hours to "ripen," i.e., before the bill can be brought to the floor.

2. Thirty hours later it's Tuesday night. There will likely then be a cloture vote on the full unemployment insurance bill, as amended.

3. Thirty hours after that, it's Thursday morning, when the Senate will vote on final passage of the bill.

4. The House could take up the bill as early as Thursday afternoon or Friday.  They likely will just accept the Senate bill and vote on that.  If their bill differs from the Senate bill, then the whole thing has to back through Conference. That's unlikely at this point - and undesirable.

5.  The plan/hope is to have the bill on the President's desk as soon as next weekend.

Obviously, this is all subject to change without notice. This is the Congress, after all.

You can see from the above that it is important to keep weighing in throughout the week - and sending this link to your network of friends, colleagues, family, neighbors, customers, employees, suppliers and urging them to do the same.  The amount of emails being sent through the Fix Housing First site has been fantastic - keep it up!

www.FixHousingFirst.com

Save Your Home Conference

September 8, 2009 @ 6 PM

Temple of Yahweh
2128 Sunset Ave, Vineland, NJ

You are cordially invited to attend this workshop presented by representatives from New Jersey Housing Mortgage and Finance Agency (NJ HMFA) and United State Housing and Urban Development (HUD).

They will be discussing the following topics:

• The New Face of FHA
• Stream Line 203K Rehabilitation Program
• Foreclosure Prevention Assistance Programs
• The Tax Credit Loan Program - $5,000
• The SMART Start Program - 4% NJ Grant
• The Live Where You Live Program - 5% NJ Grant
• The First Time Home Buyer Program - 0 pts Loan

This event is for families interested in learning how to buy their first time home, prevent foreclosure, and/or refinance an adjustable loan.

This event is also great for real estate professionals that want to raise their level of awareness of the many programs available for their clients. Therefore, if you are a realtor or a loan officer - come out to this great educational event.

Guest Speakers

Migdalia Murati
Senior Account Liaison
FHA Office of Business Development
HUD Regional Office
1 Newark Center
Newark, New Jersey 07102
973.776.7316

Stephone, D. Mickler
Outreach Officer
NJ HMFA
637 South Clinton Ave.
Trenton, NJ 08650
(609) 278-7545

Commercial Property for Sale, South Bend, Indiana
214 1/2 S Michigan St., South Bend, IN 46601

Center of Town in South Bend, Indiana

Live Auction Date / Time: Thursday, July 30, 2009 · 1:00 PM

South Bend Tribune Article, June 12, 2009

________________________________________________________________________________

Property ID#: 68143
Location: 214 1/2 S Michigan St., South Bend, IN 46601
Property: 34,847± SF Commercial Bldg. on .37± AC
Zoning/Land Use: Commercial

Description -

Built in 1921 the State Theatre is part of the National Register of Historical Places.

It is located in downtown South Bend and is in close proximity to the following:

• Civic Center;
• College Football Hall of Fame;
• Coveleski Regional Baseball Stadium;
• Studebaker National Museum; and
• University of Notre Dame

It's ornate appeal consists of a terra cotta facade, a flashy marquee, detailed plaster work, mosaic floor tile in the lobby and entrance, and marble work throughout.

Current Use:

• It accommodates 1600 people;
• Four Retail Storefronts on street level; and
• Office space on the second level.

Contact NAI Global for more information: http://powersale.naiglobal.com

NJ First Time Home Buyer Tax Credit LOAN

http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/tclp.html

It looks like everybody is doing it again - helping First Time Home Buyers (FTHB) - Buy a Home with another LOAN package. I hope that for the sake of the first time home buyer (FTHB) that this doesn't become a nightmare.

Basically, this sounds like the FTHB is going to borrow money from their own future 2009 Federal Tax FTHB Credit of up to $8,000.

Therefore, if the buyer needs additional money for down payment and/or closing cost - they could go to their state agency - borrow up to $5,000 - then after they apply for their tax credit - the no interest loan is paid back with this Federal Tax Return.

I like this idea. And I am glad that the program is helping families buy their first home. But this entire process - if I am not mistaken - is based on helping families that can't save enough for the purchase of a home. Hummm

I prefer a saving incentive such as the Individual Deposit Accounts (IDA) where the banks match money saved by the family for the purpose of buying a home. The money belongs from the family and the Bank; no more government money and the family learns a good lesson - SAVE money for your Home and Family.

Therefore, I warn FTHB to use this program - the TAX CREDIT LOAN - with CAUTION.

Get Paid for Buying Your First Home

Don't hesitate any longer. The real estate market is on your side. It's time to become a First Time Home Buyer.

The real estate market has never been so user friendly to First Time Home Buyers. Interest rates are at its lowest in history. Property prices have been reduced in most neighborhoods in the Delaware Valley.

I know what you are thinking; "My credit score is lousy and I don't have any money." Well, here are some solutions to your financial challenges.

What if you knew that you'll get paid for saving money, cleaning up your credit and buying a home? Would you do the work? Well, it is true - some of you could get paid for getting your act together now and buying Your First Home before December 1, 2009.

Get Paid for Saving 

There is a program called Individual Deposit Accounts (IDA) that will pay you for saving money to buy a home. They'll match your monthly savings with an additional $1.00 for every dollar you save. Contact your local IDA program for more details. Camden County Council On Economic Opportunity (aka OEO) has a program in South Jersey. They could be reached at (856) 962-6911.

And I have done one better for you - get the application online from my website.

Get Paid for Cleaning Your Credit

You will reduce the cost of your monthly mortgage by thousands of dollars through the life of the loan for increasing your credit score. You wouldn't have to pay points at closing in order to reduce your interest rates if you raise your credit score. The interest rates on your credit cards could also be reduced once you clean up your credit.

Therefore get free credit counseling advice at your local Consumer Credit Counseling Service office and start getting paid for cleaning up your credit history. They could be reached at (800) 989-2227.

Get Paid for Buying Your First Home

You could get up to $8,000 as part of the 2009 Federal Tax Credit for buying your first home before December 1, 2009. Usually, you could get this money 8 to 10 weeks after you buy your home. You don't have to wait until 2010 to file for this tax credit. Get it right away. Consult your tax professional for more details.

Therefore if you save money - You Get Paid. If you clean up your credit - You Get Paid. And if you buy your home before December 1^{st - You Get Paid.}

For more information about these programs go to www.CasaLatinoNJ.com

Eliud Gautier, REALTOR® Associate, Casa Latino Affiliates, (856) 448-6090

Do you remember the last time you lost your PDA?

Do you remember the last time your computer's MS Outlook was attacked by a virus?

Do you remember the day you needed an important name and phone number but you were not near your PDA or personal computer?

Well, I did - and this is when I plunged into Plaxo. This free service allows me to keep a copy of my database with various folders on the web and MS Outlook (lab top and desk top computers). So if something were to happen to my PDA, computer or Internet connection - I could always have all my personal and business contacts saved.

An added plus is that I could sych my PDA, Computer and Plaxo website so I have the most latest contact information from family, friends and business associates that are members of Plaxo.

Initially I was hesitant because of the privacy issues but in the last 3 years that I have used Plaxo I have never had any problem with other intruding with my contacts.

I am also a member of other social networking websites but none provide me the opportunity to automatically download contact information as easy as Plaxo into my MS Outlook and PDA.

Take a look at my profile on Plaxo and consider connecting with me and enhancing your network online at the same time you are protecting your list from being lost due to a PDA or Computer glitches.

http://eliudgautier.myplaxo.com/

Eliud Gautier

Misdirecting the blame for the housing crises delays recovery and risks catastrophe

By Gary Acosta and Ernest Reyes, NAHREP founders, January 14, 2009

Ten years ago we founded the National Association of Hispanic Real Estate Professionals with nothing more than a passion and a vision for improving the quality of life for Hispanic Americans.

This week the Wall Street Journal published an article entitled "Housing Push for Hispanics Spawns Wave of Foreclosures" that attempts to link the current foreclosure crisis to the advocacy efforts of organizations like NAHREP.  We view this position to be both uninformed and absurd.

NAHREP is a unique trade organization which rather than focusing on the professional or financial interests of its members seeks primarily to increase sustainable homeownership for Hispanics.  Homeownership continues to be the cornerstone of the American dream and the first step to the creation of wealth.  Empirical data supports the view that children who live in homes owned by their families are more likely to achieve higher levels of educational attainment and have less behavioral problems. In addition, homeowners have a median net worth 85 times greater than renters.   

Over the years NAHREP has at every level remained an unwavering champion for increasing the rate of sustainable homeownership for Hispanics by serving the community in an honorable and professional way. NAHREP's leadership on this front was prominently demonstrated when NAHREP staff, board members, consultants and hundreds of volunteers collaborated over many months to expand on our Pledge of Integrity, created when NAHREP was founded, and produced the NAHREP Code of Trust in the fall of 2007; an industry leading best practices guide for members and other industry participants. 

In reading the WSJ article one might get the impression that NAHREP conferences - rather than being a forum for the discussion of meaningful initiatives and policies intended to help achieve sustainable Hispanic homeownership - were a festival for opportunistic subprime lenders and outright predators. Anyone who has ever attended NAHREP events would know that this image could not be further from the truth. Attendees typically walk away inspired and filled with a stronger sense of purpose, mission and community.

Certainly, lenders from all segments of the market have attended NAHREP events - along with scores of regulators, consumer groups and elected officials. Did NAHREP push the industry to increase their lending to Hispanic families? Absolutely - but not at any cost and certainly not by expanding the use of sub-prime mortgages or by ignoring predatory activity.

NAHREP has always been a stalwart supporter of anti-predatory policy and was one of only a handful of housing groups that consistently supported portfolio caps for the GSE's because we understood that an unlimited cap would permit Fannie and Freddie to more easily fulfill their low- to moderate-income HUD goals by purchasing larger tranches of subprime and other exotic mortgages. Notwithstanding the Journal's misrepresentation of our CEO's statement regarding lenders who believed in lending to "anyone that breathes," you will know by reading any of our literature and press releases that we have never advocated for lenders to "lower the bar" but rather to "widen the window." We simply want to enhance opportunities for people who desire homeownership and have the means to be successful homeowners but who for some reason or another are not being adequately served.

The Opposition

Unfortunately, the WSJ article aligns nicely with the view of a small but influential group of people who have been trying to rid our country of public policy like the Community Reinvestment Act (CRA), fair housing, and homeownership goals. They want these programs eliminated partially because their misguided logic has caused them to believe that these policies are "anti-free market" but mostly because they simply do not believe in policies that provide any type of support for disadvantaged members of our society. These activists are now shamelessly using America's current economic crisis as an opportunity to advance their agenda.  However, they typically do not present any meaningful data or evidence to support their view.  

On November 19th 2008, John Dugan, the Comptroller of the Currency (OCC) categorically disagreed with suggestions that policies such as the CRA are in any way responsible for the current credit crises. He stated that "CRA is not the culprit of the current subprime mortgage lending abuses or the broader credit quality crises in the marketplace...indeed lenders most prominently associated with subprime lending abuses of high rates and foreclosures are not lenders subject to CRA."  He added that CRA loans generally performed as well or better than prime loans.

A similar statement was released on December 3rd 2008 by Randall Krozner a member of the Federal Reserve board of governors that was substantiated with specific Federal Reserve factual data. These well respected and highly qualified individuals fundamentally support NAHREP's view that loans made to low-moderate income homebuyers or in minority census tracks are not by definition poor risks. To the contrary these loans generally do what their designed to do - support communities and perform well.  

The present and future

It is now widely understood that in recent years credit standards became too loose and yes - public policy contributed, generally in the form of lax regulation, to our current housing crisis. However, Wall Street firms, mortgage brokers, lenders, realtors, builders, rating agencies, speculators and the secondary market all had a hand in the crisis as well. Worst of all, the culmination of these and other factors also paved a wide road for predators to wreak untold damage to the lives of thousands of vulnerable homebuyers, who are now paying a painful price for their trust and lack of experience.

There is a lot of work that needs to be done to get us out of our current economic situation, and NAHREP members all over the country are contributing a lot of the heavy lifting. Many of our members are spending dozens of hours every month donating their time to counsel families who are struggling to retain their home. Today the pendulum of lending standards has swung quite a bit the other way and while we generally applaud this more disciplined approach, NAHREP is concerned about the future of the marketplace, especially as it relates to Hispanic homebuyers. The question going forward is what is going to fill the lending gap for folks that don't "fit in the box." There are always going to be home buyers who confront credit or income challenges, or who are credit-worthy and have the financial capacity but current underwriting standards exclude them. Should they be shut out? Or better yet, is it in our collective interest to shut them out? We think we can find a way to develop mortgage products that are reasonable, that are transparent, and where everyone knows the risks involved.  

Hispanics recently became the largest minority group in America with consumer buying power approaching $1 trillion dollars per year. Most industry experts predict that by 2020, 80% of all new homebuyers will be minority or immigrants with Hispanics being the largest share. Homeownership is still the gateway to the American dream and Hispanic families are the fastest growing portion of our economy. The need to include the fastest growing population group in national homeownership policies as well as all other areas of our economy is a 21st century reality that will not go away.  To quote former HUD Secretary and NAHREP advisor, Henry Cisneros, "The tragedy of this financial meltdown will become a permanent catastrophe if its result is to diminish the nation's quest for decent housing including its commitment to homeownership and more recent efforts to boost minority access to homeownership".

In fact, it is time we all embrace the reality that what is good for Hispanic-America is good for all of America.

 TO:             ALL NEW JERSEY REAL ESTATE LICENSEES

FROM:         ROBERT L. KINNIEBREW, EXECUTIVE DIRECTOR, REAL ESTATE COMMISSION

RE:             NOTICES TO RESIDENTIAL TENANTS IN FORECLOSED PROPERTIES

The Real Estate Commission Staff has learned that some licensees are sending letters or notices to residential tenants in properties that have been foreclosed or are pending foreclosure which either state or imply that the tenant must promptly vacate or face eviction, notwithstanding that the Anti-Eviction Act, N.J.S.A. 2A:18-61.1 et seq. ("the Act") provides, with very limited exceptions, that tenants, whether or not they have a written lease, who are current on their rent payments cannot be evicted solely on the grounds of foreclosure.

Under N.J.A.C. 11:5-6.1(a) letters and notices of this nature issued by licensees are considered a type of advertising.  Such letters or notices which state or imply that a tenant is subject to eviction solely because of a foreclosure are either patently false or, at best, misleading and licensees who send such communications would be in violation of N.J.A.C. 11:5-6.1(r) which states: "No advertisement shall contain false, misleading or deceptive claims or misrepresentations.  In all advertisements which make express or implied claims that are likely to be misleading in the absence of certain qualifying information such qualifying information shall be disclosed in the advertisement in a clear and conspicuous manner."

Licensees who issue letters that fail to comply with this rule are subject to sanctions pursuant to N.J.S.A. 45:15-17t, including revocation or suspension of one's license and/or fines up to $5,000 for a first violation and up to $10,000 for subsequent violations.  Each notice sent would constitute a separate violation.  The broker responsible for supervising the licensee could also be subject to sanctions.  See N.J.A.C. 11:5-4.2. 

In addition, N.J.A.C. 11:5-6.4(i) requires a licensee to recommend that legal counsel be obtained whenever the interests of a party seem to require it.  Clearly, a notification to a tenant stating or implying that the tenant is being or may be evicted constitutes circumstances where the interests of the tenant seem to require that they obtain counsel.  Consequently, such letters and notices should include text recommending that the tenant consult with an attorney.  Licensees who issue these letters without including such a recommendation are subject to sanctions for failing to comply with N.J.A.C. 11:5-6.4(i).  Finally, N.J.S.A. 45:15-17, which subjects licensees to sanctions for: making a substantial misrepresentation (17a.); pursuing a flagrant and continued course of misrepresentation through advertisements or otherwise (17c.); and engaging in conduct which demonstrates unworthiness, incompetency, bad faith or dishonesty (17e.) may also be applicable to licensees who issue notices or letters as described above.

The New Jersey Public Advocate has published a pamphlet entitled "The Rights of Tenants During a Foreclosure," available at http://www.state.nj.us/publicadvocate/public/pdf/tenantsforeclosurebrochure.pdf

All brokers are urged to provide copies of this Notice to all salespersons and broker-salespersons in their firms.

Robert L. Kinniebrew, Exec. Dir., NJREC