I have tracked foreclosures closely for the past few years and obviously trends all over the Country are moving up. Well, Grand Traverse County is no different in that aspect.
With the 90 day moritorium ended and many of the ARM's coming due we are set for a busy fall and winter 2009-2010! As of August 4th (the last update with the Register of Deeds) we (Grand Traverse County) are just above the pace set from 2008; however, we must remember the two factors I mentioned above. One being the moritorium held back many of the foreclosures that were headed towards default as well as many 5 year ARM's that have come due will hit the market soon.
What we will see more of later this year is much of the same, but we will also see some larger properties, such as second homes and certainly some of the JUmbo loans that weren't affected by the "bailout" this past year. My crystal ball is showing that we will see more and more prime loans slip into foreclosure and the more "desireable" areas will be on the market at a reduced or distressed rate. This will have a couple different effects on our market -1) It will likely pull the market value down in these nicer areas more that what was first prediced and, 2) It will certainly spur some great buys for move up buyers and of course the investors that are looking for "the deal".
It has been interesting following the foreclosure laws in the past year or so and watching how it has effected the market - It is ever changing, but the trends seem to be pretty clear. More foreclosures to come and your going to see some major lakefront and executive deals in the very near future.
This is an interesting market and I am looking forward to working through it!
I have always wanted to get involved somehow in my community, but never have for some reason or another. Yesterday I went to a Luncheon that the Young Professional group put on at the Garfield Township office yesterday, which included 13 non-profit agencies looking for volunteers on all levels. I didn't know, but there are over 200 non-profit agencies in our community, many of them are looking for folks, like you and me, to get invloved in some capacity.
With the economy the way it is in Michigan the need for support people are great right now. Like I said, I have looking for some way to get involved in my community and now I have found a few groups that my wife and I will be looking at to lend our time and energy to.
I am very busy in my Real Estate career and my wife owns her own business along with our two and four year old girls we are always busy. Even with all of that I figure we can all donate a few hours a month/year of our time to one or more great orginazations locally.
I think as young people in our community we can be advocates for volunteerism.
The may 1st deadline is fast approaching for buyers purchasing homes that maybe a bank foreclosure and is non-homestead for 2009.
If you are buying a foreclosure and it is slated to become non-homestead in 2009 you have to close by May 1st to file your new home as a homesteaded residence. Otherwise you will inherit the non-homestead taxes for 2009-10.
Call the township office in which the home is located and ask how the taxes will be for the coming year, so you can be prepared for whats to come.
I would suggest trying to close prior to the deadline in possible.
Since no one really will come out and say it - I guess I will.
In my area (Grand Traverse, Michigan) I think we have hit the bottom of the market. At least in the home prices under 130-150K. Most of the homes that I have been looking and offering on have had multiple offers and are going for at least the listing price!
I also think that many of the true investors ore coming out of the wood work and snooping around. Everyone knows of an "investor" that will come in and low ball any and EVERY home they offer on, but a true investor will recognize value or margins. I have seen more margin buyers, with cash, come out and begin to look. When these guys get off the fence, we will see a great up turn with every pricepoint in the market!
For the most part the stock market is beginnning it's climb and consumer confidence is really getting better evey week. With confidence comes spending and spending creates jobs, jobs create more spending and the wonderful circle continues!
All the buyers that have been thinking of buying - IT IS NOW TIME TO BUY! With prices down your opportunity's are at the highest levels I have seen! RATES are still extremely LOW - who knows how long that will last...
Since were at the bottom, there is no where to go but up - that includes prices and likely rates! If your in the market you will want to strongly consider buying soon.
2009 will be a great year for the Real Estate Industry and I am really looking forward to the rest of the year!
Even though I am not a huge fan of the stimulus plan there is a great part in there that will help buyers pull the trigger and hopefully make a decision.
Of course this is not a done deal, but we are looking at a 10% or up to a $15,000 tax credit to buy a principal residence prior to the end of August this year. What a great incentive.
This is piggy backing a 2008 piece of legislation that gave a 10% or $7,500 tax credit for 1st time home buyers, and it had to be paid back during a 15 year period. This near proposed credit will NOT have to be paid back!
This is opportunity for buyers and we MUST let them know!
I am looking into who is the youngest Realtor in my board because I am hoping to use that info for marketing purposes. I am 25 and I have been selling Real Estate for 2 years, but there isn't a lot of other agents my age to chat with. I am the youngest in my office and maybe in my board.
What is the youngest age in your office and are they doing any good as far as production?
I am 25 with 2 beautiful girls and an equally beautiful wife, but I also have a passion to be a top agent in my local board....Is it possible to have both a strong family life as well as a thriving RE business?
I am currently number 1 in my office and in the top 7% of all agents in my board, but I want to be number one there too. I am struggling with many things right now and one of them is, how much time to I spend with my family and how much time to I spend working? Both are important, but only one is replacable.
I am looking to grow my business to a level that once I thought was out of reach, and now is feasable, but at what cost? I hope whoever reads this doesn't think that I am a jerk that neglects his family...that is quite the opposite. I am home often so that my wife can continue her education (M.D) and dreams, so I am spending time, during the day, with my kids.
I need some advice on how to hire an assitant. I have had some great advice already, but I thought I would open this up to a larger group of people. I thought the rain would be perfect place to pose this question. Also, Any other suggestions to help me would be appreciated too.
LANSING - Attorney General Mike Cox today announced a major settlement between the State of Michigan and Countrywide Financial, the nation's largest mortgage lender, resulting from allegations of predatory lending. The settlement will provide relief for more than 10,000 current and former Michigan homeowners who are struggling with the national home foreclosure crisis.
"Through our negotiations, we have provided a helping hand to thousands of Michigan families who are struggling with the foreclosure crisis," said Cox. "And, unlike the Wall Street mess, this was no bailout. Countrywide is paying, not the taxpayers."
Cox conducted national negotiations with Countrywide and other state attorneys general due to allegations of questionable lending practices. Those lending practices included misleading marketing techniques and incentives for selling loans with risky features, which may have contributed to the national increase in foreclosures.
As a result of the negotiations, Countrywide must offer to refinance thousands of Michigan mortgages, provide millions in financial assistance and stop questionable loan practices.
Under the terms of the settlement, Countrywide will:
Refinance as many as 9,700 mortgages in Michigan, giving families an opportunity to keep their homes, and saving them approximately $129 million as a result of more favorable terms.
Pay more than $9.8 million to assist Michigan homeowners who lost their homes to foreclosure. These funds will also be used for borrower education programs and neighborhood rehabilitation efforts.
Pay relocation assistance payments to certain homeowners who go into foreclosure after the date of this settlement, costing Countrywide up to $70,000,000 nationally.
Stop selling subprime and option ARM loans in Michigan for two years, and impose new limits on the sale of low or no-documentation loans.
Cap the amount a broker can earn to 4% of the amount borrowed.
Stop an automatic foreclosure process until certain details regarding the mortgage holder's situation have been verified.
Report quarterly to the Attorney General on the status of its troubled mortgages and what it is doing to keep them from going into foreclosure.
Maintain a specified number of staff focused on helping troubled homeowners avoid foreclosure proceedings.
Homeowners who acquired a loan from Countrywide Financial can call the Countrywide hotline for more information at 1-800-669-6607.
Citizens who feel they are victims of questionable lending practices can file a complaint with the State of Michigan Office of Financial and Insurance Regulation at 1-877-999-6442 or the Attorney General's Consumer Protection hotline at 1-877-765-8388.
REAL ESTATETax Crackdown on Second Homes To help pay for the housing bill passed this summer, Congress has changed the rules for vacation homes and rental properties. Here's what you need to know about paying the piper. By Mary Beth Franklin, Senior Editor From Kiplinger's Personal Finance magazine, October 2008
Congress has pulled the rug out from under vacation-home owners planning to squeeze tax-free profit from their second homes. Under current law, you could sell your primary residence and take up to $250,000 of profit ($500,000 if you file a joint return) tax-free, as long as you owned and lived in the place for two of the five years leading up to the sale.
Then you could move into your vacation home or a rental property and, by living in it for at least two years, get a second bite of the tax-free apple. Even profit that built up while it was a vacation home or rental could dodge the IRS.
No more. To help pay for the big housing bill passed this summer, Congress has changed the rules so that some of your gain will be taxable if you convert your vacation home or rental unit to a primary residence after 2008.
The portion of the gain to be taxed is based on the ratio of nonqualified use -- the time the property is used as a vacation home or rental unit after this year -- to the total amount of time you owned the property.
Assume you bought a second home in 2000. Let's say you convert it to your primary residence in 2011 and sell it two years later. In this example, the home would be used as a vacation property for two years after 2008, so one-seventh of the profit (two out of the 14 years you owned it) would be taxed at capital-gains rates. The remainder of the gain -- up to $500,000 for couples -- would be tax-free.
This tax-law change could be even more significant if you buy a second home after 2008. In that case, none of the time it is used for vacations or rental income qualifies for the tax exclusion. But if you convert it to your principal residence, the longer you live there, the less the profit from a sale will be taxed. And you can avoid the crackdown altogether if you move in before the end of the year, says Raffaele Mari, a CPA in Corona Del Mar, Cal.
But what do you do with your current home? You could rent it to generate cash flow and buy some time before selling it in this slow housing market, says Mari. The tightening doesn't apply in reverse: You'd still qualify for tax-free profit on the home as long as you sell it within three years to meet the two-of-five-years test.
It seems in this volitale economy our government keeps hitting us where it hurts. Everytime something is passed the public seems happy, but who pays for it? That's right...you and I. This time it is just not in headline news. Makes a lot of sense in this economy to decrease opportunity....
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