Paul's Blog

Williamson County Tennessee September Sales Figures

2008-10-08T08:25:46Z

September 2008 Home Sales

October 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of September 2008. There were 243 residential and condominium closings reported for the month of September, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.

Compared to September of 2007, the single family residential closings decreased 29 percent and the median price decreased by 6.5 percent. Condominiums closings have decreased by 56 percent and the median price increased by 11 percent. The average days on the market (DOM) for residential homes have increased by 20 days and condominiums have increased by 29 days. Days on the market have been consistent since the onset of 2008, with the days ranging from 74 - 89 days. Median prices have remained consistent since January 2008, ranging from $345,000 to $395,000. The median is a typical market price where half of the homes sold for more and half sold for less.

September 2008

	Closings	Median Price	Average Price	DOM
Residential	218	$ 348,502	$ 387,960	88
Condominium	25	$ 222,175	$ 238,447	78

September 2007

	Closings	Median Price	Average Price	DOM
Residential	307	$ 373,000	$ 452,549	68
Condominium	57	$ 199,882	$ 214,482	49

September 2006

	Closings	Median Price	Average Price	DOM
Residential	441	$ 379,275	$ 437,876	44
Condominium	81	$ 183,000	$ 214,088	42

September 2005

	Closings	Median Price	Average Price	DOM
Residential	431	$ 281,110	$ 356,630	55
Condominium	49	$ 142,000	$ 170,895	31

Our local economy has not been impacted as greatly as the majority of the country however Williamson County was also behind the market's decline by as much as 6 months leading many to expect the lowest point in sales and home values to be over the coming quarter. The silver lining is, this is a great time to buy a home in a great area.

July 2008 Sales Figures for Williamson County Tennessee

2008-08-11T09:10:31Z

The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of July. There were 342 residential and condominium closings reported for the month, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.

Compared to July of 2007, the residential home closings decreased 28 percent and the median price for residential homes decreased by 6 percent. Days on the market (DOM) for residential homes increased by 11 as compared to July 2007. Condominium closings decreased by 23 percent. The median prices for condominiums decreased by 2 percent and days on the market increased by 10 days compared to July 2007.

The Housing Stimulus Package will help our market by allowing many home owners to refinance and avoid foreclosure and assist in maintaining home resale values in neighborhoods across Williamson County.

The largest contributor to lower median sales price is the decrease in sales of homes in Williamson County over $1,000,000 when compared to 2006 & 2005. The decrease in the number of homes sold over $1,000,000 is significantly less that the past 3 years not only for July 2008 but for all of 2

July 2008

	Closings	Median Price	Average Price	DOM
Residential	315	$ 363,500	$ 429,120	77
Condominium	27	$ 211,044	$ 227,407	86

July 2007

	Closings	Median Price	Average Price	DOM
Residential	437	$ 384,900	$ 449,994	66
Condominium	35	$ 215,000	$ 229,134	76

July 2006

	Closings	Median Price	Average Price	DOM
Residential	518	$ 373,353	$ 419,341	46
Condominium	36	$ 185,000	$ 215,615	50

July 2005

	Closings	Median Price	Average Price	DOM
Residential	541	$ 317,000	$ 367,786	54
Condominium	45	$ 158,900	$ 153,825	31

Are You Relevant?? !!

2008-07-26T18:15:53Z

Many of us who have been BLOGGING on AR for some time know have asked the others who are new to the world of BLOGGING on AR this question;

Are You Relevant?

One of the greatest things about Active Rain is the ability to put your thoughts and knowledge out there for the world to while learning more about your skill sets and abilities as a real estate, mortgage or title company professional

Last week during a class someone noted that my BLOGGING had put me atop our local site and had helped me with my Google ranking immensely. I noted to them that I posted relevant information about what I do in the world of real estate and I select the audiences to be the one that would be interested in this information.

Quickly I showed the class 3 Active Rain BLOGGERS who ranked high in Google but when you linked back to their BLOGS they were nothing about real estate, their market or their ability. If you want to social network recipes or good times at the beach there are sites for this information....If you feel that this will help you professionally then you are only fooling yourself. NO person looking for a professional real estate agent in this market is going to look at your web site or abilities based on a cookie recipe or a fun time at the opera. Again this is what pooped up on their site when you search their name in Google !!! All good people but all of their ability and professionalism went for naught when a consumer clicks on their name in Google for their city as a " Professional REALTOR" who must actually be an Opera critic or cookie wiz!

Keep You BLOG Relevant !!!

Post It To Sites In AR Where The Audience Want To Read The Info...

Have a great week............

Paul Moye, Broker

Keller Williams Realty

Franklin, TN

www.middletnrealty.com

Keller Williams Buyer's Agents Rank #1 In JD Power Survey

2008-07-25T21:24:17Z

J.D. Power and Associates Reports: Among Home Buyers, Keller Williams Ranks Highest In Customer Satisfaction Among National Real Estate Companies! Despite Popularity of Online Home Buying and Selling Tools,Real Estate Agents are Key to Customer Satisfaction!!!

The inaugural study measures customer satisfaction of home buyers and sellers with the largest national real estate firms. Overall satisfaction is determined by examining three factors for the home-buying experience: agent (65%); office (21%); and services (13%). Four factors are examined for the home-selling experience: agent (43%); marketing (38%); office (12%); and services (7%). In the home-buyer segment, Keller Williams achieves a score of 831 on a 1,000-point scale, and receives highest ratings from customers in all three factors.

The study finds that despite the popularity of home-buying and -selling resources on the Internet, real estate agents are key to customer satisfaction with real estate companies. A large proportion of both home buyers and sellers rely on the Internet to facilitate the buying or selling process, with 68 percent of buyers saying that they used Internet tools to help them in the purchase process and 61 percent of sellers reporting that they used a Web site listing to market their home. In addition, among home sellers, online methods are the most important aspect of marketing. However, the agent factor carries the greatest importance among the factors that comprise overall satisfaction among both home buyers and sellers. "Although the Internet provides home buyers and sellers with the ability to perform some essential tasks -- such as listing a home for sale or researching a neighborhood in which to purchase a home -- it still does not replace the importance of a good real estate agent," said Howland. "Particularly in an uncertain real estate market, professional advice from agents can be especially valuable to buyers and sellers.

The knowledge and expertise provided by experienced agents is an important benefit of using a full-service real estate company." The study also finds that the average time a home for sale remained on the market was slightly more than six months, although home sellers represented by the top-ranking real estate companies report that their homes were on the market for slightly less time -- approximately five and a half months, on average. "Satisfaction averages 794 among those customers whose homes sold within 5 months or less, but declines considerably to an average of 730 among customers whose homes took 7 months or longer to sell," said Howland. "A real estate company that provides agents who are skilled at determining the appropriate market value and listing price for homes, and who can effectively market properties, can help minimize the time that clients' homes remain on the market -- which can not only save the seller money, but also diminish inconvenience and anxiety." Additional noteworthy study findings include the following: --

Nearly one-half of respondents (46%) report using recommendations from family or friends to find their real estate agent. Approximately 28 percent used the Internet, while 23 percent used an agent they had used previously and 11 percent used a printed real estate guide. -- On average, home buyers were shown approximately 13 homes before making a purchase. -- Home sellers report that, on average, their home was shown approximately 11 times and approximately five open houses were conducted before the sale occurred. The 2008 Home Buyer/Seller Study includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.

Housing Reform Bill Set To Be Finalized; President Bush Will Not Veto The Legislation

2008-07-23T14:55:16Z

The House of Representatives has passed the nearly 700 page Housing Reform Bill and the US Senate is expected to vote on it by Wednesday. President Bush has dropped his threat to veto the reform package thereby clearing the way for the legislation to be finalized.

Here is a quick synopsis

Increase the Federal Housing Administration's role. The FHA could insure up to $300 billion in new 30-year fixed rate mortgages for at-risk borrowers in owner-occupied homes if their lenders agree to write down their loan balances to 90% of the current appraised value of their homes. Lenders would also agree to pay upfront fees to the FHA equal to 3% of a home's appraised value. Borrowers must agree to pay an annual premium to the FHA equal to 1.5% of their new loan balance and they must also agree to share with the government any profit they realize from selling or refinancing their home. The cost of the new FHA program - which would begin on Oct. 1 and be in place for just a few years - would be funded by fees from Fannie and Freddie

Create a stronger regulator for the GSEs: The new regulator will have a greater say over how well funded the agencies are - a major concern in the markets that has sent stocks in both companies plunging.

Permanently increase "conforming loan" limits: The bill would permanently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625,000 from $417,000.

Increase FHA maximum loan limits for high-cost areas to $625,000.
Higher loan limits will make it easier for borrowers to get mortgages, because they're more likely to be traded if they are considered conforming.

Create home buyer credit: The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500. The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments by the buyer. The refund would be reduced gradually for single filers with adjusted gross incomes above $75,000; and for joint filers with AGIs over $150,000.

Bar down-payment assistance for FHA loans: The bill eliminates a program that has allowed sellers to provide down payment assistance. The seller-funded program is largely the reason why the agency's reserve has fallen by $4.6 billion, according to FHA Commissioner Brian Montgomery. Currently, that reserve is roughly $16.4 billion.

The bill would also increase to 3.5% from 3% the down payment requirement for borrowers getting FHA loans.

Paul Moye, Your Middle Tennessee Real Estate Agent www.middletnrealty.com

Williamson County Tennessee June Home Sales Figures

2008-07-23T14:45:42Z

June 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of June. There were 327 residential and condominium closings reported for the month, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.
Compared to June of 2007, the residential home closings decreased 33 percent and the median price for residential homes decreased by 3 percent. Days on the market (DOM) for residential homes increased by 14 as compared to June 2007. Condominium closings decreased by 54 percent. The median prices for condominiums increased by 1 percent and days on the market also increased by 8 days compared to June 2007.

June 2008

	Closings	Median Price	Average Price	DOM
Residential	300	$ 367,520	$ 436,842	81
Condominium	27	$ 210,213	$ 218,816	59

June 2007

	Closings	Median Price	Average Price	DOM
Residential	447	$ 380,000	$ 459,373	67
Condominium	59	$ 207,900	$ 232,256	51

Market Driven Short Sales Could Out Pace Foreclosures in 2009?

2008-07-06T10:17:10Z

With the glut of homes lenders now own in many of the major population centers of our country the reality of Short Sales is becoming more lucrative to those Lenders. Here's the scenario;

As the second lien holders grow weary of losing 100% of their interest in a mortgage due to foreclosure taking some $$$ from the table is better than no $$$. The "Investors Will Not Allow Us To Take Less Than xx$$$" once was a very popular phrase used by Loss Mitigation Departments in the past...but not any longer. See the one thing about "Investors" is they will take something over nothing and those investors are tired of 'nothing" coming to them as these loans evaporate into foreclosure.

Remember also that almost every major second mortgage lender is also a first mortgage lien holder on other properties in and around the same market. Seeing property values continue to decline only perpetuates the cycle of loss and those losses grow and grow and grow. It is better for all Lenders to have Owners who can pay a mortgage living in houses sold "short" than to have vacant homes not performing and losing more $$$ after foreclosure. This mind set or business philosophy has taken a while for the Big Boys to learn but as with all things that succeed it must be 'Market Driven" to effect a change in philosophy.

As Short Sales become 'National News Headlines" on all the major news outlets it is apparent that this part of the mortgage business will continue to grow and lenders will be forced to streamline their processes as the industry has now become Market Driven by Short Sales.

Foreclosure is your final option....

Paul Moye, Broker

Your Middle Tennessee Short Sale Professional

www.middletnrealty.com

Williamson County Tennessee May Home Sales Figures

2008-06-10T08:50:06Z

May 2008 Home Sales

June 9, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® announces the sale of homes statistics for Williamson County, Tn. for the month of May. There were 346 residential and condominium closings reported for the month, according to figures provided by RealTracs® Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.
Compared to May of 2007, the residential home closings decreased 26 percent and the median prices for residential homes remained the same, with less than a one percent change. Days on the market (DOM) for residential homes increased by 24 days as compared to May 2007. Condominium closings decreased by 60 percent. The median prices for condominiums decreased by 20 percent and days on the market decreased by 17 days compared to May 2007.

May 2008

	Closings	Median Price	Average Price	DOM
Residential	321	$ 370,000	$ 440,864	85
Condominium	25	$ 196,000	$ 209,772	86

May 2007

	Closings	Median Price	Average Price	DOM
Residential	434	$ 371,338	$ 481,385	61
Condominium	60	$ 244,490	$ 241,554	69

May 2006

	Closings	Median Price	Average Price	DOM
Residential	462	$ 335,000	$ 417,075	49
Condominium	68	$ 147,900	$ 186,172	45

Williamson County Tennessee April Home Sales Information

2008-06-10T08:47:53Z

April 2008 Home Sales

May 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of April. There were 250 residential and condominium closings reported for the month, according to figures provided by RealTracs® Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.

Compared to April of 2007, the residential home closings decreased 26 percent and the median prices for residential homes decreased by 12 percent. Days on the market (DOM) for residential homes increased by 9 days as compared to April 2007. Condominium closings decreased by 42 percent. The median prices for condominiums decreased by 26 percent and days on the market decreased by 17 days compared to April 2007.

April 2008

	Closings	Median Price	Average Price	DOM
Residential	229	$ 345,000	$ 418,653	74
Condominium	21	$ 166,300	$ 190,443	63

April 2007

	Closings	Median Price	Average Price	DOM
Residential	308	$ 391,200	$ 462,038	65
Condominium	36	$ 224,995	$ 227,367	80

April 2006

	Closings	Median Price	Average Price	DOM
Residential	378	$ 322,000	$ 398,088	48
Condominium	50	$ 140,900	$ 175,642	38

"The median is the middle number in a given sequence of numbers. Comparing April 2008 to April 2007, there were less homes in the higher end of the spectrum, thus tightening the variations in home values sold and lowering the median. This data cannot be construed to indicate that any individual home value has absolutely increased or decreased, it is an indicator of the price range of home that is selling at the time interval measured.

March 2008 Housing Sales Figures

2008-04-10T07:35:49Z

April 8, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of March. There were 273 residential and condominium closings reported for the month, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.

Compared to March of 2007, the residential home closings decreased 29 percent and the median prices for residential homes decreased by 1 percent. Days on the market (DOM) for residential homes increased by 16 days or 24 percent as compared to March 2007. Condominium closings decreased by 43 percent. The median prices for condominiums increased by 15 percent and days on the market also increased by 41 percent (17 days) compared to March 2007.
March 2008

Closings	Median Price	Average Price	DOM
Residential	243	$ 375,000	$ 439,809	83
Condominium	30	$ 209,404	$ 212,124	58

March 2007

	Closings	Median Price	Average Price	DOM
Residential	340	$ 380,000	$ 456,587	67
Condominium	53	$ 181,990	$ 203,859	41

March 2006

	Closings	Median Price	Average Price	DOM
Residential	401	$ 327,402	$ 402,950	51
Condominium	51	$ 137,000	$ 163,395	33

Local REALTORS Work To Stop Copper Theft Epidemic In Tennessee

2008-04-09T21:46:31Z

Realtors® from across the state visited with their legislators Wednesday seeking support for a variety of legislation. Attending Realtors® included TAR President Mike Gaughan, a partner in three RE/MAX offices in Sumner County, and Jim Gibbs who owns the Career Institute and Ideal Realty. The Realtors® spent considerable time with their representatives discussing the issues.

One bill being supported by the Realtors® deals with the regulation of scrap metal dealers. Since last year Realtors® have led the fight to stop the epidemic of scrap metal and especially copper theft. "This year we continue our support with a coalition of the Homebuilders, law enforcement and industry", said Gibbs. "Like many Realtors®, I have experienced the frustration of having new homes under construction stripped of its wiring causing a major expense for the builder. That expense is just passed on to the consumer", added Gibbs.

Gibbs pointed out that the problem is not restricted to just copper wire. He said that several metal historic markers in Cannon County have been stolen and they have probably been sold as scrap metal. Gibbs who is also one of Cannon County's Constables points out that the main components of the bill are to make it more difficult for thieves to turn scrap metal into quick cash and remain anonymous. The bill would:

· Require registration of scrap metal dealers.

· Persons selling scrap metal must present a valid photo ID and provide a thumbprint.

· Scrap metal dealers will have to keep records of each transaction including name, license plate number and vehicle information of each seller of scrap metal.

· Requires scrap metal dealers to present a "voucher" for payment for copper and other precious metals in an effort to break the link between metal theft and the illegal drug trade.

· Local governments may impose additional restrictions depending on the level of the problem in their area. (Local ordinances in Memphis are already in effect and seem to be working to curb the problem.)

Gibbs noted that the bill has already passed the Senate and is headed for the House Floor.

It is also the position of the Tennessee Association of Realtors® that the County Powers Relief Act of 2006 should be allowed to remain un-amended in an effort to address its viability in 2010 as the legislation allows. "We as Realtors® further oppose any taxes or fees that could inhibit home sales in Tennessee", added Gibbs.

The Tennessee Association of REALTORS® is a 27,000-member trade organization committed to providing for development of our communities and protection to Tennessee homeowners.

Bizjournal Names Two Tennessee Cities As Affordable Housing Markets

2008-04-09T21:42:42Z

Tennessee Makes News as Affordable Market

A newly-released study by Bizjournals.com ranked the 50 largest

metropolitan areas in the U.S. as to housing affordability. Tennessee

had TWO cities make it into the top 20!

Memphis ranked 9th, and Nashville ranked 16th!

The study looked at median household income per month and the median

total housing payment per month - for each of the 50 markets - to

compute total housing payment as a percentage of household income. This

showed 22.43% of income spent on housing in Memphis. In Nashville, the

figure was 24.15% spent on housing; in Los Angeles the least affordable city? 75.46%!

[SOURCE: Bizjournals.com]

Short Sale Q&A

2008-04-09T21:38:43Z

Number 10

I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score...is a short sale right for me?

Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9

If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?

The mortgage insurance is not there for your protection, just the mortgage lender's.

Number 8

Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?

No. Technically speaking there is no such thing as being "Short Sale Approved." The actual approval only happens with an accepted offer.

Number 7

I just missed a payment and I know I will miss more...how long does the foreclosure process take and is there time to do a short sale?

The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In Tennessee the process can take as little as 28 days once you are in default. There is also not a redemption period in Tennessee so once the property is foreclosed it is over.

Number 6

Will I still have to pay property taxes if I do a short sale?

Property taxes will always have to be paid as part of any accepted short sale. Whether it's you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5

I owe more than my home is worth and I can't make the payment. Do I have to somehow qualify for a short sale?

The simple answer is NO. If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.

Number 4

Do I have to pay income taxes...I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me...the seller...is this true?

It WAS true, now it's not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3

How do you, my listing agent get paid...who pays your commission?

The bank will pay the commission along with all the other usual closing costs.

Number 2

Do I have to miss a payment to do a Short Sale?

No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1

I want to do a short sale and have a 2nd mortgage, does this make me ineligible?

No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holders.

Saxon Mortgage Servicing Lays Off 100 in Texas

2008-03-02T18:14:34Z

As Morgan Stanley and other Wall Street Brokerage Houses regroup and reposition their mortgage portfolios the servicing end of their mortgage business continues to have a rough outlook. After announcing nationwide layoffs could be expected due to the economic determination in their mortgage business power house brokerage Morgan Stanly sent notice to the Texas Department of Labor saying it will lay off 100 employees in their Ft Worth Texas Service Center.

Saxon Mortgage Layoffs Hit Fort Worth

Kerri Panchuk | 02.29.08More than a week after Morgan Stanley announced layoffs within its residential mortgage platform, its lending subsidiary Saxon Mortgage Services was mentioned in a warn letter mailed to the Texas Workforce Commission to inform them of 100 job cuts at a Saxon facility in Fort Worth, Texas.

Earlier this month, Morgan Stanley announced layoffs within its residential mortgage lending operations due to current deterioration in the mortgage marketplace.

Paul Moye

Keller Williams Realty

Your Middle Tennessee Real Estate Expert

www.middletnrealty.com

Williamson County Tennessee January 2008 Housing Sale Figures

2008-02-26T11:30:06Z

Franklin, Brentwood and the majority of Williamson County Tennessee continue to beat the odds and out perform the rest of the nation in home sales during the national housing crisis!!!

Looking to move you business or career to Nashville or Middle Tennessee?

Now is the time to strongly consider our strong business climate and no stae income tax!!!

Paul

Paul Moye, Broker Keller Williams Realty www.middletnrealty.com

Williamson County Association of REALTORS® Announces January Housing Numbers

February 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of January 2008. There were 173 residential and condominium closings reported for the month of January, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.
Compared to January of 2007, the single family residential closings decreased 41 percent and the median price increased by 2 percent. Compared to 2006, the median home prices have increased by 34 percent. Condominiums closings have decreased by 12 percent and the median price increased by 10 percent. The average days on the market (DOM) for residential homes has increased by 21 days and condominiums have remained consistent. The median is a typical market price where half of the homes sold for more and half sold for less.

January 2008

	Closings	Median Price		Average Price		DOM
Residential	145	$ 395,000	$ 451,792		87
Condominium	28	$ 174,308	$ 182,131		36

January 2007

	Closings	Median Price	Average Price	DOM
Residential	245	$ 388,757	$ 451,494	66
Condominium	32	$ 157,965	$ 185,573	35

January 2006

	Closings	Median Price	Average Price	DOM
Residential	301	$ 294,000	$ 358,305	52
Condominium	24	$ 181,000	$ 191,768	46

"The Williamson County real estate market continues to maintain its value with increasing median pricing defying Wall Street predictions of falling values. Buyers should have lots of opportunities in the next few months with ample inventory and low interest rates. Sellers are certainly hoping for increased buyer interest in home buying with the approach of warmer months." said Kathie Moore, 2008 President of the Williamson County Association of REALTORS®.

The Williamson County Association of REALTORS® is the professional trade organization servicing the real estate industry in Williamson County. Established in 1962, the association provides professional development and support services for real estate professionals. The association has over 1,550 members and is headquartered in Franklin, Tn.

When The Fed Cuts Rates What Does It Mean For You ???

2008-01-31T22:23:15Z

Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.

What does this mean for long-term rates?
Long-term mortgage rates, the lowest we've experienced in years, could actually increase after this cut, based on historical performance and recent trends.

What REALLY moves mortgage rates?
Fixed-rate mortgage rates aren't directly tied to Fed interest rate moves. Instead, they tend to follow in the direction of other long-term government bond yields, such as the 10-year Treasury, which historically moves in accordance with the economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what really determines long-term mortgage rates.

How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double-edged sword for borrowers. Combined with recent Fed actions, the package could create inflation and bring about higher long-term interest rates.

On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This means great potential savings for purchase and refinances candidates who live in 20 high-cost areas across the countrty.

Paul

Paul Moye, Broker, ABR, GRI, e-PRO Keller Williams Realty

www.middletnrealty.com/

paul@middletnrealty.com

Your Middle Tennessee Real Estate Professional for REO, Investment Property, Land & New Construction

Were We Really That Far Ahead Of The Crowd??

2008-01-31T21:02:31Z

Four years ago I started working with distressed home owners who had suffered a short term dose of bad luck. In helping them re-work their loans wit the bank I made friends, received referrals and was ahead of the times for once..

See the article in DSNews on new Loss Mitigation legislation coming to a State House or State Senate near you!

Loss Mitigation is a process of negotiations between the mortgage lender and the home owner. The lender has no financial gain to foreclose and looks to work out the issues with the home owner. The two most popular solutions are Forbearance and Loan Modification. Forbearance actually bring a homeowner's mortgage current and adds the past due payments on to the end of the loan and usually sees a 1 time waiver of all late fees, but it does not reverse the negative impact on the home owners credit report. Loan modification is where the lender agrees to restructure the original mortgage into a product the owner can afford to pay and remain current for the future. Both of these remedies do not come with some side effects. The main issue with forbearance is the fact that most home owners do not restructure their budget and find themselves again in a past due situation, an average of 65% of the time the home owner does lapse into foreclosure. Loan modification does have a higher success rate but the main issue is the loan is re-worked and any equity the owner might have had is vanquished as a part of the modification process in fees and closing costs. Hey if you like your house and the market is a good market then the loan modification beats a poke in the eye with a stick and foreclosure.

If you are working with a client on a short sale, do not forget to include Loss Mitigation, if the bank says no on the short sale and you save the owner's house as a bonus, who do you think they are going to refer their friends to?

You will need to check with your principal broker and an attorney to get the state specifics on these processes in your state. Every state has different redemption periods, different rules on loan re-instatement and different rules on how an agent can act in dealing with this process.

Who Said January Was Dull???

2008-01-27T09:56:27Z

As we come to the end of January it is almost surreal what we have seen as begin this new year in real estate.

The stock market is trending downward, the Bush Administration finally realized there is a problem with the economy and Bank of America will soon be the largest single home mortgage company in the world. All in all quite a lot has happened in what is traditionally a slow and uneventful time of year in our industry.

As we approach the Spring we will begin to see if the Stimulus Package will actually do anything to energize the economy and is home values will level off allowing owners to begin refinancing their Upwardly Mobile ARM's to stave of foreclosure.

I actually feel more confident at the end of January than I did as we rolled into 2008.

The truth is we as Americans all want these issues resolved despite our political affiliations so with that in mind remember that this is an election year and we will have a new President. 1/3 of the Senate is up for re-election and all of the House of Representatives are up for re-election. With so much public emphasis I feel we have seen the worst of the housing market mess. Remember that the elections will give the major news Agencies something to do that beat the drums of gloom and that in itself will relieve a great deal of the anxiety.

Here is to an interesting January 2008 and an even more interesting February!

HUD VS. REO A Newcomers Guide

2008-01-27T09:28:13Z

This BLOG is not meant for a seasoned agent or investor, it is a basic explanation of the differences between the two types of foreclosure sale properties.

HUD Homes

Housing & Urban Development owned properties obtained primarily through the default of an FHA or VA Loan and in some rare cases government backed block grant loans for urban revitalization. These properties are primarily marketed through a Regional Sales Company such as First Preston, Pyramid Realty and or a local service providing brokerage. These properties are typically sold on a Bid Process and require the assistance of a licensed real estate agent. HUD properties do not sell to the highest bidder but the highest Net Yield for the property. In certain markets such as revitalization areas there are instances when individual bidders who work for the local Police, Fire or Schools bids are given special priority. Generally an Owner Occupant will always prevail over an investor despite Net Yield as HUD's main goal is individual home ownership.

REO Homes

These are bank / lender owned homes that have been foreclosed on and are being marketed by a local real estate brokerage on behalf of the bank / lender. These homes are sold primarily in As-IS condition with the Buyer assuming all risk for the condition. REO properties are sold with a clear title where all liens have been cured or remedied. This is also a Net Yield business where the Buyer who offers the most money with the least costs to the lender / bank will be the new owner. Lenders offer no preference as a rule to owner occupants over investors except in rare occasions where the bank / lender may have numerous properties mortgaged on their books in that specific area. A good example would be a Condo or PUD where 1 lender was the primary or prevailing lender. At that point the bank / lender may take a lower Net Yield to keep the property as an owner occupied property to protect the values of the remaining mortgages.

Just a simple and brief explanation of the basic differences in these two types of foreclosed properties

Paul Moye

Your Middle Tennessee Real Estate Professional

For more information on REO and HUD properties in the Nashville Market contact me at

paul@middletnrealty.com

www.middletnrealty.com

Back To The Future With The Bankruptcy Code Revision

2008-01-25T09:11:41Z

I have been BLOGGING about this for over a year. How long does it take for our government to truly react to a problem they created when they tried to protect banks?

We hear so much about the evils of sub prime predatory lenders, how about the credit card companies who lobbied Congress for a decade to change the Bankruptcy Code to there favor. If they wanted to stop defaulting credit cards then stop issuing credit cards to people who do not pay on time, FICO 650 or above anyone?

So know we have Lenders, Investors and the Bond Market taking huge hits in the foreclosure market because of a few short sighted legislators who did not realize that home ownership is the Bedrock of our economy. They disallowed a family in a financial crisis to keep their home and while wiping out their consumer debt thinking only of the short term implications.

Look at it this way the $1.5 Billion dollar stimulus package coming from our Treasury Department later this year is almost 2x more than the total consumer credit card debt that the banks would have lost since 10/01/2005 when the new Code went into effect.

With the pending rule reversal and the proposed stimulus package we jut went "Back To The Future" with our economy.

Read the following article to gain further insight into this matter.

New Bankruptcy Laws Spur Foreclosures

Peter G. Miller

Almost 30 years have passed since the Bankruptcy Reform Act of 1978, a time when mortgages typically had a fixed-rate and unchanging monthly costs. Back then - and until 2005 - if you ran into financial trouble bankruptcy provided a way out and a fresh start.

But in 2005 declaring bankruptcy - something that was never simple, easy or pleasant to begin with - became far tougher. Under the Bankruptcy Abuse Prevention and Consumer Protection Act creditors suddenly had new protections - and borrowers didn't.

What changed? Effective October 17, 2005 most student loans can no longer be discharged. If your income exceeds the state medium you can be forced to file under Chapter 13 (a repayment program) and not Chapter 7 (a discharge and forgiveness plan). Credit debt is not forgiven if you spend at least $500 in the 60 days prior to seeking bankruptcy protection -- say a cash advance to pay off a looming mortgage payment.

Perhaps most importantly for mortgage borrowers, the 2005 legislation says homeowners must obtain credit counseling and develop a budget analysis in the 180-day period before filing for bankruptcy.

If you put all the changes together the results are predictable: Bankruptcy filings should fall and that's exactly what happened. According to court filings there were 1,597,462 bankruptcies in 2004 and 2,078,415 bankruptcies in 2005. As for 2006, bankruptcies declined 70 percent to 617,660 cases.

The falling number of bankruptcies and the rising numbers of foreclosures are related. In basic terms, under the old bankruptcy rules it was often possible to delay a foreclosure action by stalling the creditor in court and using that time to sell or refinance the property.

Curiously though, the 1978 legislation had an unusual mortgage-related requirement. It provided that while a bankruptcy court could modify and adjust various debts, including the mortgage on a vacation home, it could not modify the mortgage on a prime residence. A literal interpretation of this language was upheld in 1993 by the Supreme Count in its Nobleman decision.

"The practical effect of the current bankruptcy law is that borrowers stuck in unaffordable home loans must cure their defaults and, in addition, make monthly payments on the loans according to their terms or lose their homes. No other creditor in personal bankruptcy or business bankruptcy can leave a borrower in such a position," says a study produced jointly by the National Consumer Law Center, National Association of Consumer Bankruptcy Attorneys, Consumer Federation of America, National Association of Consumer Advocates and the Center for Responsible Lending.

Under the 2005 legislation borrowers cannot get into a bankruptcy court until they've satisfied credit counseling requirements. Unfortunately, in many jurisdictions foreclosures can be accomplished in far less than 180 days, meaning that the property can be lost before a borrower is even allowed to file a bankruptcy claim.

"What we need today are bankruptcy laws which assure that creditors are protected from the easy loss of their investments," says Jim Saccacio, chairman and chief executive officer of RealtyTrac, the leading online marketplace for foreclosure properties. "At the same time, we need to end the imbalances found in current bankruptcy rules. The mortgage products which existed in 1978 have been supplanted with new and complex mortgage instruments, so the rules which worked in the past need to be reconsidered in the light of fresh circumstances."

Such change may well be underway. In the House, a Judiciary subcommittee has approved HR 3609, a bill introduced by Rep. Brad Miller (D-NC) and Rep. Linda Sánchez (D-CA) that would end the credit counseling requirement and also allow bankruptcy courts to modify mortgage debts on prime residences.

In the Senate, S.2136, introduced by Sen. Dick Durban (D-IL), would eliminate the credit counseling requirement and allow bankruptcy judges to modify mortgage obligations, just like the House proposal. The Durbin bill would also:

Give debtors up to 30 years, less the time the mortgage has been outstanding, to pay-off long-term real estate debt.

Allow a bankruptcy judge to convert a mortgage into fixed-rate financing "in an amount equal to the most recently published annual yield on conventional mortgages published by the Board of Governors of the Federal Reserve System, as of the applicable time set forth in the rules of the Board, plus a reasonable premium for risk." In essence, a bankruptcy judge could modify a predatory loan or an exploding ARM.

Combat excessive fees charged to debtors in bankruptcy.
Maintain debtors' legal claims against predatory lenders while in bankruptcy.
Allow bankruptcy judges to rule on core issues rather than defer to arbitration.
Allow property owners over age 55 to have at least a $75,000 homestead allowance, a larger allowance than is now available in many states.
Reinforce consumer protection claims even when a borrower goes bankrupt.

If the bankruptcy reform bills had been proposed a year ago their chance of passage would have been zero. But with the number of foreclosures growing nationwide, with homes losing value in many local markets and with the presidential race now underway, bankruptcy reform has a real shot at passing.

Paul

Paul Moye, Broker, ABR, GRI, e-PRO Keller Williams Realty

www.middletnrealty.com/

paul@middletnrealty.com

Your Middle Tennessee Real Estate Professional for REO, Investment Property, Land & New Construction