Chicago Exclusive Buyer Broker - Relocation Advisors Group Inc.

Homebuyer Tax Credit Extended to April 2010 - Can Close by end of June 2010 - and 6.5k to Owners Who Have Lived in Their Home at Least 5 Out of Last 8 Years

Fri, 06 Nov 2009 19:11:58 -0600

After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

It is virtually certain that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes.

The legislation included provisions added to address complaints of fraud. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

The legislation also contains a provision supported by the National Association of Home Builders which will help larger companies strapped for cash with net operating losses (NOL). Ordinarily these companies can carry back these losses for only two years to qualify for a tax refund. The provision would make this process extend the carry-back to five years for either 2008 or 2009. The tax break will now apply to losses in either 2008 or 2009, and the income cap will come off.

Comment - this should help keep buyers in the market for quite some time... and perhaps provide a benefit over the normally slower holiday season..

America's Cheapest Homeownership Markets

Tue, 27 Oct 2009 18:34:56 -0500

Different people have different notions of what cheap means and buying isn't an option for everybody. Many renters are now losing jobs and banks are raising standards for mortgages.

But renters should always evaluate the decision of whether to rent or to own.... Here is a list of American's Cheapest Homeownership Markets...

Some summary information from the link noted above...

1. Detroit Metro (Mich.)
Own/rent ratio: 94%
Annual cost to own: $8,519
Annual cost to rent: $9,072

Detroit is best known as the home of the Big Three automakers: General Motors, Ford, and Chrysler. The city has been hard-hit by the recession because of its dependence on the struggling auto industry. Detroit was the 11th largest metropolitan area as of 2007, with a population of nearly 4.5 million. It had and unemployment rate of 17.1% in June, the worst of any metropolitan area with a population over one million.

2. Pittsburgh Metro (Penn.)
Own/rent ratio: 97%
Annual cost to own: $8,947
Annual cost to rent: $9,252

The Pittsburgh area, located on the west side of the state, has a population of about 2.3 million. This former steel town now has large employment in the education and health-care industries. Heinz and United States Steel have headquarters there. The area has escaped the worst of the recession and had a 7.7% unemployment rate in June.

3. Rochester Metro (N.Y.)
Own/rent ratio: 113%
Annual cost to own: $9,523
Annual cost to rent: $8,448

Located near Lake Ontario, the Rochester metropolitan area has a population of more than 1 million. Rochester is home to Eastman Kodak and the University of Rochester. The Rochester unemployment rate was 8.4% in June, not seasonally adjusted. In the first half of this year, one in every 276 houses received a foreclosure notice in the Rochester area, according to RealtyTrac.

4. Memphis Metro (Tenn.-Miss.-Ark.)
Own/rent ratio: 114%
Annual cost to own: $8,593
Annual cost to rent: $7,524

Memphis is located on the Mississippi River and the metropolitan area has a population of more than 1.2 million. The city is known as the birthplace of rock and roll. Elvis' estate, Graceland, is in the area. FedEx, AutoZone and International Paper are headquartered there. The Memphis area ranked 43rd in the nation in foreclosure notices in the first half of 2009 according to RealtyTrac.

5. Tampa Metro (Fla.)
Own/rent ratio: 115%
Annual cost to own: $10,823
Annual cost to rent: $9,444

South Florida is has been hit hard by the recession, and home prices in Tampa have taken a dive. The metro was the country's 19th-largest in 2007, with a population of more than 2.7 million. OSI Restaurant Partners and WellCare Health Plans are headquartered there. The Tampa Bay area also relies on the tourism industry.

6. Cleveland Metro (Tenn.)
Own/rent ratio: 119%
Annual cost to own: $9,934
Annual cost to rent: $8,364

Cleveland, Tenn., is located in the southeast corner of Tennessee, near Chattanooga. Major employers include Johnston Coca-Cola Bottling, Whirlpool, and Rubbermaid. With a population of approximately 112,000, the Cleveland area is among the smallest on this list.

7. Dayton Metro (Ohio)
Own/rent ratio: 119%
Annual cost to own: $8,420
Annual cost to rent: $7,056

Home prices and employment in Dayton have both taken a hit in the recession. The unemployment rate in the area was 12.1% in June. The Wright-Patterson Air Force Base is a large employer in the area.

8. Columbia Metro (S.C.)
Own/rent ratio: 123%
Annual cost to own: $9,885
Annual cost to rent: $8,016

Columbia is the state capital and home to the University of South Carolina. The metropolitan area had about 700,000 people as of 2007. The city's large employers are the state government and University of South Carolina, two industries that are more recession-proof than others, and so it has been spared from the worst of the crisis. However, the unemployment rate still reached 10% in June (not seasonally adjusted).

9. Orlando Metro (Fla.)
Own/rent ratio: 124%
Annual cost to own: $12,107
Annual cost to rent: $9,756

The Orlando metro area, in central Florida, has a population of more than 2 million. Orlando's economy relies heavily on tourism from Walt Disney World, Universal Studios, and SeaWorld amusement parks. The metro area ranked 10th in foreclosure notices in the first half of 2009, according to RealtyTrac. It had an unemployment rate of 10.8% in June, not seasonally adjusted.

10. Dallas-Fort Worth Metro (Texas)
Own/rent ratio: 124%
Annual cost to own: $11,037
Annual cost to rent: $8,880

Home sales in the Dallas-Fort Worth area were flat in the second quarter of 2009 after several declines, according to the National Association of Realtors. Mortgage rates are low, making this a good time for home buyers. The Dallas-Forth Worth region was the fourth-largest metropolitan area in 2007 and the largest city on this list. It had a June unemployment rate of 8.2%. American Airlines and ExxonMobil are headquartered in the area.

___________________________________________________________________________________________________________________________________

As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area - covering both downtown and many Chicago suburbs. Unlike "buyer agents" - we are specialists -- always 100% on the buyer's side.... NEVER EVER REPRESENTING SELLERS!

If you are thinking about buying / purchasing a home in the Chicago Illinois area, you should ensure that you have an agent that is on YOUR side – looking out for your best interests.

Relocation Advisors Group, Inc. represents BUYERS ONLY in the Chicago metropolitan area so that you have 100% representation - 100% of the time. We show more types of properties. Besides all MLS listed properties by any company - we show for-sale-by-owner, short-sale and foreclosure properties, properties that aren't advertised, and much more.

If You Become our Client - You Can Be Assured That We Tell You About the Negatives of a Home - Not Just the Positives. You Have an Unbiased Consultant and Advocate and "Personal Real Estate Coach" on Your Side....(Not a "Salesperson")

Best of All - You are Nothing Out of Pocket to Us For Our Services...

If you have excellent credit and are thinking about buying a home between $250,000 to $2 million in the Chicago Illinois area during the next 60-90 days:

Please Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us at info@relocationadvisorsgroup.com to schedule a complimentary initial consultation.

Chinese Drywall is causing problems. And insurance is being pulled on those homes.

Thu, 15 Oct 2009 14:08:27 -0500

In West Palm Beach Florida - a couple recently discovered that their relaxing retirement was put on hold when they discovered their new home had been built with Chinese drywall that emits sulfuric fumes and corrodes pipes. It got worse when they asked their insurer for help -- and not only was their claim denied, but they've been told their entire policy won't be renewed.

Thousands of homeowners nationwide who bought new houses constructed from the defective building materials are finding their hopes dashed, their lives in limbo.

Insurers drop policies or send notices of non-renewal based on the presence of the Chinese drywall.

At least three insurers have already canceled or refused to renew policies after homeowners sought their help replacing the bad wallboard. Because mortgage companies require homeowners to insure their properties, they are then at risk of foreclosure, yet no law prevents the cancellations.

During the height of the U.S. housing boom, with building materials in short supply, American construction companies imported millions of pounds of Chinese-made drywall because it was abundant and cheap.

An Associated Press analysis of shipping records found that more than 500 million pounds of Chinese gypsum board was imported between 2004 and 2008 -- enough to have built tens of thousands of homes. Shipments were heavily concentrated in the Southeast, especially Florida.

The defective materials have been found to emit "volatile sulfur compounds," and contain traces of strontium sulfide, which can produce a rotten-egg odor, along with organic compounds not found in American-made drywall.

Homeowners complain the fumes are corroding copper pipes, destroying TVs and air conditioners, and blackening jewelry and silverware. Some believe the wallboard is also making them ill.

The federal government is studying the problem and considering some sort of relief for homeowners.

Homeowners have little recourse since neither the Chinese manufacturers nor the Chinese government are likely to respond to any lawsuits or reimburse them for the defective drywall.

Insurers learn of the drywall through a claim filed by the homeowner seeking financial help with its removal.

Insurance companies consider the drywall a pre-existing condition that could lead to future damage, which is why the company won't renew the policy unless the problem is fixed.

Even if a homeowner does not file a claim over the drywall and remains covered, they could later be denied a claim for a fire or another calamity if insurance investigators determine the home contained undisclosed Chinese drywall.

___________________________________________________________________________________________________________________________________

As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area - covering both downtown and many Chicago suburbs. Unlike "buyer agents" - we are specialists -- always 100% on the buyer's side.... NEVER EVER REPRESENTING SELLERS!
If you are thinking about buying / purchasing a home in the Chicago Illinois area, you should ensure that you have an agent that is on YOUR side – looking out for your best interests.
Relocation Advisors Group, Inc. represents BUYERS ONLY in the Chicago metropolitan area so that you have 100% representation - 100% of the time. We show more types of properties. Besides all MLS listed properties by any company - we show for-sale-by-owner, short-sale and foreclosure properties, properties that aren't advertised, and much more.
If You Become our Client - You Can Be Assured That We Tell You About the Negatives of a Home - Not Just the Positives. You Have an Unbiased Consultant and Advocate and "Personal Real Estate Coach" on Your Side....(Not a "Salesperson")
Best of All - You are Nothing Out of Pocket to Us For Our Services...

If you have excellent credit and are thinking about buying a home between $250,000 to $2 million in the Chicago Illinois area during the next 60-90 days:

Please Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us at info@relocationadvisorsgroup.com to schedule a complimentary initial consultation.

The Move-up Market and Luxury Market are The Ones Needing Stimulus

Fri, 18 Sep 2009 12:41:51 -0500

If there is to be another stimulus (i personally say - just let market forces be market forces... prices adjust..) -- the move-up and luxury markets are the ones needing the most help.

See this article for more information.

The sponsor of the original Senate bill, Johnny Isakson, Republican of Georgia, is back with a new bill that would give a maximum $15,000 credit to any buyer who stays in a home for at least two years.

The Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute.

It labeled the original credit as one of the worst provisions of the stimulus package, on the grounds that the money is a bonus for people who would buy a house anyway.

The center has an even dimmer view of extending the credit to all buyers.“Is this the best way to spend money we don’t have?” asked senior fellow Roberton Williams.

___________________________________________________________________________________________________________________________________

As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area - covering both downtown and many Chicago suburbs. Unlike "buyer agents" - we are specialists -- always 100% on the buyer's side.... NEVER EVER REPRESENTING SELLERS!
If you are thinking about buying / purchasing a home in the Chicago Illinois area, you should ensure that you have an agent that is on YOUR side – looking out for your best interests.
Relocation Advisors Group, Inc. represents BUYERS ONLY in the Chicago metropolitan area so that you have 100% representation - 100% of the time. We show more types of properties. Besides all MLS listed properties by any company - we show for-sale-by-owner, short-sale and foreclosure properties, properties that aren't advertised, and much more.
If You Become our Client - You Can Be Assured That We Tell You About the Negatives of a Home - Not Just the Positives. You Have an Unbiased Consultant and Advocate and "Personal Real Estate Coach" on Your Side....(Not a "Salesperson")
Best of All - You are Nothing Out of Pocket to Us For Our Services...

If you have excellent credit and are thinking about buying a home between $250,000 to $2 million in the Chicago Illinois area during the next 60-90 days:

Please Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us at info@relocationadvisorsgroup.com to schedule a complimentary initial consultation.

The Luxury Home Buyers In the Chicago Illinois area and on the Coasts are Few & Far Between..

Fri, 18 Sep 2009 09:09:09 -0500

According to NAR, the national share of home sales above $750,000 has fallen from 4.4 percent in 2007 to approximately 2.3 percent in 2009, and the months' supply of inventory has risen from 18.7 months to 41.1 months during the same period.

Here in Chicago's Northwest Suburbs - Luxury Homes are sitting on the market - despite frequent price drops.

NAR looked at inventory in the higher price ranges ($750,000 and above) in May, comparing that month's supply with a year earlier. In May 2008 the month's supply was 17.6 months; in May 2009 it was 24.9 months.

In Hawthorn Woods Illinois - just three homes above 700k have sold in the past six months - though there have been 32 closings in the past six months (all below 700k).   There are 37 homes on the market in Hawthorn Woods - 700k and above out of 115 currently active.

In Barrington Illinois - there are 176 homes currently active at 700k and above - while just 27 have closed during the past 6 months.

The high end on the East Coast & West Coast is also suffering..though reportedly people are coming back into the market looking for bargains..

___________________________________________________________________________________________________________________________________

As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area - covering both downtown and many Chicago suburbs. Unlike "buyer agents" - we are specialists -- always 100% on the buyer's side.... NEVER EVER REPRESENTING SELLERS!
If you are thinking about buying / purchasing a home in the Chicago Illinois area, you should ensure that you have an agent that is on YOUR side – looking out for your best interests.
Relocation Advisors Group, Inc. represents BUYERS ONLY in the Chicago metropolitan area so that you have 100% representation - 100% of the time. We show more types of properties. Besides all MLS listed properties by any company - we show for-sale-by-owner, short-sale and foreclosure properties, properties that aren't advertised, and much more.
If You Become our Client - You Can Be Assured That We Tell You About the Negatives of a Home - Not Just the Positives. You Have an Unbiased Consultant and Advocate and "Personal Real Estate Coach" on Your Side....(Not a "Salesperson")
Best of All - You are Nothing Out of Pocket to Us For Our Services...

If you have excellent credit and are thinking about buying a home between $250,000 to $2 million in the Chicago Illinois area during the next 60-90 days:

Please Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us at info@relocationadvisorsgroup.com to schedule a complimentary initial consultation.

Home Buyer Tax Credit Might Be Extended and Increased to $15,000....

Thu, 17 Sep 2009 19:23:24 -0500

I haven't posted here in awhile - since I've been swamped all summer with a large amount of home buyer clients (that are smart enough to seek out the best representation for buyers (we are unique in that we never represent sellers) and best RE negotiator in the Chicago area w/no dual agency conflicts of interest.)

Interestingly - most of our clients are very analytical. Why? Thay analyzed what the best form of representation for buyers is in Real Estate - Exclusive Buyer Agency (meaning the agent and their company never represents sellers - ever)   They read about it in Consumer Reports, Money Magazine, Suze Orman, Kiplinger's Personal Finance, the WSJ, etc.

So now - legislators are talking about extending the home buyer tax credit. More than 1.4 million Americans have already claimed the new tax credit for first-time home buyers, according to a report from the Internal Revenue Service. So - the uptick in housing was entirely artificially created....

While a new credit may continue to artificially boost sales - I see it as a bad idea and a waste of the taxpayers money. Just let the market be the market.   Things adjust - an equilibrium is established - and then things turn.

This goverment rebate to buyers - ironically - just delays a housing recovery...

Senator Isakson, a former real estate broker - has become a leading voice on housing market issues, had introduced his own bill several weeks ago. That would extend the credit for a year - and would allow all homebuyers, not just first-timers, to claim it, as long as the property is for a principle residence. The bill would also increase the tax refund to as much as $15,000.

The house bills all extend the deadline through at least the end of December 2009 and two of the bills, introduced by Howard Coble, R-NC and by Dan Burton, R-Ind., would have it run through 2010. They would also open it up to all homebuyers.

There has already been $14 billion allocated to the program -- and any extension would surely cost billions more. Finding that money may be very difficult.

The current credit applies to sales as of January 2009, is good for 10% of the price of a home, up to $8,000, and supporters assert it has helped stabilize the housing market (which it has). It's available to anyone who has not owned a home for three consecutive years prior to purchase, and to qualify for the full credit buyers must be purchasing a primary residence, and couples can earn no more than $150,000, while individuals must make less than $75,000.

The credit has been an important stimulus tool for two reasons. It's fully refundable, meaning that even if buyers owe no taxes whatsoever, they'll get an $8,000 check from the IRS. And this refund will put money in consumers' pockets for good, as opposed to the $7,500 first-time homebuyer tax credit that could be applied to sales made between April 2008 and July 1 2009.

Buyers must close on their homes before Dec.1. But because much of the recent uptick in home sales has been attributed to this tax credit, housing industry advocates worry that the market could quickly turn down again after the credit expire.

I disagree. The market will adjust fairly quickly. Price fixes everything. Ultimately - it is the market that must adjust. Rates seem to be headed down a bit again - which can only help pricing... Rates are the key - not artificial props.

___________________________________________________________________________________________________________________________________

As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area. Unlike "buyer agents" - we are specialists -- always 100% on the buyer's side.... NEVER EVER REPRESENTING SELLERS!
If you are thinking about buying / purchasing a home in the Chicago Illinois area, you will want to ensure that you have an agent that is on YOUR side – looking out for your best interests.
Relocation Advisors Group, Inc. represents BUYERS ONLY in the Chicago metropolitan area so that you have 100% representation - 100% of the time. SEE MORE TYPES OF PROPERTIES - including for-sale-by-owner, short-sale and foreclosure etc. We show ALL listings suiting your needs - from ANY Real Estate company.
If You Become our Client - We Tell You About the Negatives of a Home - Not Just the Positives. You Have an Unbiased Consultant and Advocate and "Personal Real Estate Coach" on Your Side....
Best of All - You are Nothing Out of Pocket to Us For Our Services...

If you have excellent credit and are thinking about buying a home in the Chicago Illinois area during the next 60-90 days:

Please Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us at info@relocationadvisorsgroup.com to schedule a complimentary initial consultation.

Chicago Suburban Fireworks Information and Relocation Advisors Group Inc Fireworks Display for July 3rd

Tue, 30 Jun 2009 11:08:36 -0500

Fireworks expenditures this year in the Chicago area...

For an entire list of events - you can click here

Happily - some fireworks are also on the 4th - if you don't get your dose on the 3rd...

My company fireworks party is a higher budget this year than last year (as we've had a very good year - with many home buyer clients choosing to use our services - because we are always on their side - without the conflicts of interest that the traditional buyer agents can have... & better negotiation and home buyer service and expertise in general....) - and includes mortars & roman candles.

We spend more than Elburn / Island Lake/

Gurnee and Elgin Illinois combined! (which is zero this year in those towns!)

Guests see 6 different cities fireworks displays from our office overlooking the lake - with fireworks reflections across the lake...

Home Sale Figures Were Lower Than Expected.. But I'm Flooded W/First Time Buyer Clients

Tue, 23 Jun 2009 10:07:49 -0500

Sales of previously occupied homes rose modestly from April to May, the third monthly increase this year, but signs of any housing recovery are fragile at best.

The National Association of Realtors said Tuesday that home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million last month, from a downwardly revised pace of 4.66 million in April.

Prices, meanwhile, dropped by 16.8 percent from a year ago.

The results missed economists' expectations.

Sales had been expected to rise to an annual pace of 4.81 million units, according to Thomson Reuters.

The median sales price plunged to $173,000 from $207,900 in the same month last year, but up from $166,600 in April.

Hey - and that was when rates were in the 4's.... I imagine the figures will be worse in the future - since rates rose in the past month - but helping keep the momentum going is the 8k tax credit.

Once that goes away in December - there had better be something else helping housing..

I'm crazy busy now though - with first time homebuyer clients.... They come to me when they want someone who guarantees that I'll always be

on their side.   There are only about 700 of us (Exclusive Buyer Agents) in the USA...... We never rep. sellers.   We are specialists - not generalists - so very good at what we do (home finding, negotiation, getting folks to closing smoothly...)   Buyers come to us - when they want the best....

Off to write up three contracts for purchase..... including a deep discounted (as of yesterday) bank owned one... :-)

Proposed 15k Tax Credit to all Buyers

Mon, 22 Jun 2009 12:47:31 -0500

On June 10th, Johnny Isakson, a Senator for the State of Georgia, introduced legislation that would give ALL buyers a $15k tax credit with NO income limitations. Senator Isakson was cited as follows:

“The first-time homebuyer tax credit has made a difference. First-time home buyers used it and the market stabilized, but we don't have a recession in first-time home buyers. We have a recession in the move-up market,” Isakson said. “One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can.” --Sen. Isakson--

Information Source:

http://isakson.senate.gov/press/2009/061009housing.htm

I hope this one passes. Feel free to write your congressmen about it...

Bidding Wars in Real Estate Here in Chicago and Elsewhere

Fri, 29 May 2009 15:54:21 -0500

Here in the Chicago area - many of my past home buyer clients during the past four months - got into multiple bid situations.   The reason was that I was monitoring bank owned properties that they were interested in - and the bank got sick of holding the property - and all of a sudden - deep discounted the property. They wanted it of their books. So - we jumped on it. In one case - since we were the first one to jump on it - they just accepted our bid.

For example a property that was 220k got discounted to 180k - a 40k drop. Then - four contracts swarmped in.

I used my background in corporate competitive intelligence (sophisticated interview techniques) to find out where the other bidders wer at - and then my buyer client out-bid the highest of the four by $2,000. The bank took our bid - and we won the property. The appraislal came in way over what the buyer paid. As part of the deal - I negotiated in to have all of the buyer's closing costs paid.

Roight now - all my clients are first time home buyer clients. That is where the market is at the moment. Very few high-end buyers here in Chicago. Most of the buying is in the 200's-300's...

In other markets, even with foreclosures still looming, bidding wars are occurring.

In Phoenix for example, a large supply of foreclosed families who can no longer qualify for a loan has spurred investor interest to turn as many of these families as possible into rent-paying tenants in the very homes they used to own.

The bidding war is generally from absentee buyers (investor or vacation properties), which currently represents 4 out of 10 homes sold in the Phoenix metropolitan area as of April. This is about double the level experienced for 2007.

Homes that sold originally for $225,000, now have been sold for $80,000-110,000. Great news for the investor, unless the population contracts.

Similar antidotal data appears to be occurring in the California markets of such as Carlsbad, Oceanside and Vista, but only at much higher prices in the $350,000-400,000 range.

While Homes Sales Were Up Month to Month - Higher Inventory and Higher Rates Don't Bode Well for Pricing. And High-end Taking a Bath

Wed, 27 May 2009 12:20:08 -0500

Sales of previously occupied homes rose modestly from March to April - as buyers took advantage of prices that were 15.4 percent below year-ago levels.   Comment -- (I know our business has been up - as we are serving many first time homebuyers in the 200-300k range....)

Home sales rose 2.9 percent to an annual rate of 4.68 million last month, from a downwardly revised pace of 4.55 million in March.

The results slightly beat economists' forecasts.

The median sales price plunged to $170,200, down from $201,300 in the same month last year. That was the second-largest price drop on record after January, when prices fell 17.5 percent.

Comment -- Interestingly - that was in the face of rates getting down to 4.75%. They have trended up during the past week to about the 5% range - and may move higher - suggesting that there may be more pricing pressure to come..

The number of unsold homes on the market at the end of April rose almost 9 percent from a month earlier to nearly 4 million. That's a 10-month supply at the current sales pace.

Comment - That also means future pricing pressure.

"We still need a continuing and consistent rise in home sales to get the inventory down," said Lawrence Yun, NAR's chief economist. Only then, will prices stabilize and eventually recover.

Another big problem, Yun noted, is the lack of activity at the higher-end of the housing market, among properties priced at $750,000 or higher.

Interest rates are much higher for loans above $730,000 that cannot be purchased by Fannie Mae or Freddie Mac. And that's sapping demand for expensive properties.

"It's just stalled. completely stalled," Yun said.

The Realtors group is pushing for the Federal Reserve to start buying up those loans, even if they are not backed by Fannie and Freddie.

It also wants the higher loan limits to apply to the whole country, not just expensive areas like California and New York.

Comment - something needs to be done about the high end being stalled....Not sure what - but those homeowners are taking a bath - with many just walking away from the property...

How Obama Killed the Travel Industry

Wed, 20 May 2009 08:16:11 -0500

http://online.wsj.com/article/SB123620554538133281.html

Travel executives say high-end business meetings and incentive trips, some of which have been maligned by Congress and Mr. Obama as ill-advised and wasteful, are the lifeblood of the $740 billion industry, creating more than $100 billion in spending and one million jobs.

In February, Mr. Obama rebuked financial institutions, saying, "You can't take a trip to Las Vegas or down to the Super Bowl on the taxpayers' dime.'' Industry executives say there has been a wave of trip cancellations by corporations worried about "bailout backlash." Among them: Wells Fargo & Co., which got $25 billion in government money, recently cancelled plans to send 40 employees to a Las Vegas conference.

Geoff Freeman, the travel association's senior vice president for public affairs, said the group is soliciting 60-second video auditions from industry employees, seeking a "face of the industry."

To top it off - it didn't help that Joe Biden stated that he and his family didn't want to travel on airplanes due to Swine flu!

104,366 dead arrogant men & women that gave their lives to free Europe

Wed, 20 May 2009 08:08:46 -0500

http://www.freerepublic.com/focus/bloggers/2224355/posts

1. The American Cemetery at Aisne-Marne , France . A total of 2289 of our military dead.

We Apologize?

2. The American Cemetery at Ardennes , Belgium . A total of 5329 of our dead.

We are arrogant?

3. The American Cemetery at Brittany, France . A total of 4410 of our military dead.

    We are dismissive?

4. Brookwood , England American Cemetery. A total of 468 of our dead.

    Apologize?

5. Cambridge , England . 3812 of our military dead.

6. Epinal , France American Cemetery. A total of 5525 of our Military dead.



7. Flanders Field , Belgium . A total of 368 of our military.

8. Florence , Italy . A total of 4402 of our military dead.

9. Henri-Chapelle , Belgium . A total of 7992 of our military dead.

10. Lorraine , France . A total of 10,489 of our military dead.

11. Luxembourg , Luxembourg . A total of 5076 of our military dead.

12. Meuse-Argonne. A total of 14246 of our military dead.

13. Netherlands , Netherlands . A total of 8301 of our military dead.

14. Normandy , France . A total of 9387 of our military dead.

15. Oise-Aisne , France . A total of 6012 of our military dead.

16. Rhone , France . A total of 861 of our military dead.

17. Sicily , Italy . A total of 7861 of our military dead.

18. Somme , France . A total of 1844 of our military dead.

19. St. Mihiel , France . A total of 4153 of our military dead.

20. Suresnes , France . a total of 1541 of our military dead.

Apologize to no one!

Remind them of our sacrifice and don't confuse "Arrogance with leadership."

            IF I ADDED CORRECTLY!

            THE COUNT IS 104,366 dead arrogant, dismissive men & women that gave their lives to free Europe !

Obama to Establish Regulatory Commission to "Protect" Consumers from Credit Cards, Mortgages and other products

Wed, 20 May 2009 08:00:19 -0500


The Obama administration, trying to crack down on abuses exposed by the financial crisis, is considering creation of a regulatory commission to protect consumers of financial products such as credit cards and mortgages, according to administration and industry officials.

These officials said the administration has been exploring such an approach in meetings over the past few days with executives of the financial services industry.

The proposal could set off a turf war among federal agencies such as the Securities and Exchange Commission and the various bank regulatory agencies.

"Changes are needed to make sure that the current financial crisis, the worst in seven decades, is never repeated."

The proposal the administration was considering would centralize the enforcement of laws that protect consumers of financial products, such as credit cards, mortgages and mutual funds. That effort currently is spread across a number of federal and state agencies, including the Federal Reserve, the SEC and the Federal Trade Commission.

The Financial Services Roundtable, which represents some of the biggest institutions in the country, has argued that it would be a mistake to separate the regulation of financial products from the regulators who oversee the institutions selling those products.

It was unclear whether the administration will propose creating a new federal agency to house the commission or placing the commission under an existing agency.

The administration already has put forward some broad principles for financial regulatory overhaul, including creation of new powers to allow authorities to "Take over major financial institutions that represent a threat to the system."

Comment -- That's all we need is another incompetent federal agency -- and government takeover of private business.....Altlas Shrugged

Builder confidence up - but construction down - to lowest level in half a century

Tue, 19 May 2009 10:37:21 -0500

Yesterday - an index that gauges builder confidence for single-family homes jumped two points in May, to its highest level since September 2008, according to the National Association of Home Builders.   That followed a five-point rise in April.   The index is based on a survey of builders, who rate current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." They also rate traffic by prospective buyers to new homes.

Two out of three components of the index rose in May. The index component gauging current sales conditions rose two points to 14, while the component gauging sales expectations for the next six months rose three points to 27. The index gauging traffic of prospective buyers remained steady, at 13.

Yet today - the Commerce Department reported that construction of homes and apartments fell 12.8 percent last month to the lowest pace on records going back a half-century. Analysts had expected housing starts to rise. The report did contain some positive signs including a rebound in single-family construction, which partly offset a drop in apartment building.

Lenders Need to Accept More Short Sales - and Create a Process For Quicker Answers...

Sun, 10 May 2009 11:49:07 -0500

Due to lack of lender cooperation or delays in approving short sales- the US housing market has lost billions of dollars in property values,caused additional unemployment, strain on local tax revenues and more homes going into foreclosure.

There are billions of dollars' worth of short-sale contracts sitting in lender offices, for properties they end up foreclosing on. Lenders turn down short-sale contracts and sell properties eight months later for 40 percent to 50 percent less. It is the definition of insanity.

Rather than giving money to lending institutions / banks without stipulation - perhaps taxpayer money should be tied to how many short sale offers are accepted.   Then perhaps the institutions would spool up personnel in those departments.   Perhaps the TARP (Troubled Asset Relief Program) money should be used to hire out-of-work mortgage and financial people to get the short sales ramped up and cleaned up?

Bank owned (REO) properties are killing property values. Good for our buyer clients of course -- (we've been involved in several multiple offer situations lately on deep-discounted bank owned property - with my clients getting the properties at tens of thousands less than the appraisal came in at....

But - we the taxpayers, are handing (banks) money so they can perpetuate the problem. They are taking billions of dollars on one side, and on the other side they are throwing billions of dollars out the window, ruining home prices by not accepting short sale ofers due to understaffing and poor standards.

When the alternative is a bank owned property - where you can get an answer back within 24-48 hours versus 3 months or more - and the price is much less than any lender would accept for the short sale properties nearby - the bank owned properties become preferable to home buyers.

Home Buyers Coming Out of the Woodwork Here in Chicago Illinois

Fri, 17 Apr 2009 09:54:34 -0500

When the dust settles on the Spring Chicago area market - median home prices in most places will be down compared to the previous year, but single-family home sales may be up (though inventory is still high.) Chicago area home buyers are coming out of the woodwork. I haven't been this busy since 2005....

I am seeing a lot of first-time home buyers who have been on the sidelines for a while ready to make a move. 95% of my business is first time home buyers.

Yesterday - I talked to an agent-friend in Florida who said the same thing. During the past few weeks - buyers are coming out of the woodwork...

The Chicago area buyers that study the market are ready to jump at a good deal. Homes that are well kept in nice locations are selling quickly, if priced appropriately. In other cases - banks are dropping their prices quite a bit on their bank-owned properties -- sometimes 30k in one day on homes priced in the 200's. Then - buyers swoop in and multiple offers ensue.

The buyer with the best offer get the deal.   In some cases - Chicago area buyers are bidding above the newly dropped list - in order to ensure that they get the place - but they still get a good price on the property.

During the past week - I've been swamped with buyer prospects knocking at our door. We interview them to determine if we'd like to work with them - and it also gives them an opportunity to ask questions of us.

We only work with buyers who are ready to purchase in the next 60 days - who have good credit - and who have enough for at least an FHA Downpayment.    It's a great spring market here in the Chicago area!    I haven't posted as frequently on Active Rain - since I've been so darn busy!

Have a great spring! Beautiful day outside today and - another closing for a Chicago suburb buyer client who got a great deal on a bank owned property.

Rates on prime mortgages eligible for purchase or guarantee by Freddie Mac hit another new low this week.

Sun, 05 Apr 2009 13:30:10 -0500

Rates on prime mortgages eligible for purchase or guarantee by Freddie Mac hit another new low this week.

For borrowers making 20 percent down payments, the 30-year fixed-rate mortgage averaged 4.78 percent with an average of 0.7 point for the week ending April 2, down from 4.85 percent a week ago and 5.88 percent at the same time last year. The rate has never been lower since Freddie Mac began the survey in 1971.

Rates on 15-year fixed-rate mortgages were also at lows not seen in records dating back to 1991, averaging 4.52 percent with an average 0.7 point, down from 4.58 percent last week and 5.42 percent a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.92 percent this week, with an average 0.7 point, down from 4.96 percent last week and 5.59 percent a year ago. The 5-year ARM has not been lower since the survey began tracking that product in 2005.

One-year Treasury-indexed ARMs averaged 4.75 percent this week with an average 0.6 point, down from 4.85 percent last week and 5.19 percent a year ago. The 1-year ARM has not been lower since the week ending Sept. 29, 2005, when it averaged 4.68 percent.

Low rates have spurred a boom in applications to refinance, but more modest increases in applications for purchase loans. According to the Mortgage Bankers Association, applications for refinance loans were up 141 percent last week from a year ago. Applications for purchase loans have picked up in recent weeks, but were still off 32 percent from a year ago

Purchase-loan applications were essentially flat, but applications for refinance loans were up 3.7 percent for the week ending March 27. That's not as dramatic as the 41.5 percent increase in refinancing applications seen during the week ending March 20, following the Federal Reserve's announcement that it would expand its balance sheet by $1.15 trillion to keep interest rates down and stimulate borrowing.

Know Someone Who Can't Sell Their Home?

Fri, 06 Mar 2009 00:16:16 -0600

Know Someone Who Can't Sell Their Home? Tell them to get a job with the postal service and relocate! - http://tinyurl.com/axzvqd

Must be one heck of a postal worker to own that McMansion!

Home Purchase Price Rule of Thumb...

Sun, 22 Feb 2009 22:19:23 -0600

There is a rule of thumb that says you should not buy a home that costs you more per month that 20 to 25% of your take home pay. We rarely see anyone following that rule of thumb today.

Too many consumers are buying homes that take a large part of their monthly income. This leaves little room in their finances for emergencies, furniture, vacations, investing, etc. With the past relaxed lending requirements, people were buying way more home than what they could realistically afford. If you go down this road, chances are that you’ll grow to hate this home. You should own a home, the home should not own you.

If you are buying a home in the next 6 months and want to learn more about the process from an Exclusive Buyer Agent. Call us at 847-566-7558 or e-mail info@relocationadvisorsgroup.com We are an Exclusive Buyer Brokerage (meaning that we never list property for sale or represent sellers) serving the Chicago area.

Obama's $75 Billion to "Prevent Foreclosures" - Another Boondoggle in My Opinion

Wed, 18 Feb 2009 20:59:34 -0600

The question remains will it help? And what does it mean for those who pay their mortgages? Or is this bailout to "prevent foreclosures" just fantasy land?

"The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession. Government support pledged to mortgage giants Fannie Mae and Freddie Mac is being doubled as well, to $400 billion, as part of an effort to encourage them to refinance loans that are "under water" -- those in which homes' market values have sunk below the amount the owners still owe."

But what they don't seem to realize - is that investors in complex mortgage-linked securities, who make money based on interest payments, could still balk, including those who hold second mortgages or home equity loans. Their approval would be needed to prevent many foreclosures. They will likely initiate foreclosure (as long as they think they can get some money out of the deal) even though say - a first mortgage holder (a Fannie or Freddy) - may not. So - the homeowner will end up getting foreclosed upon anyway. Never mind that more time for a short sale might have benefited them in a better way...

The plan offers no help to borrowers whose loan exceeds their property value by more than 5 percent.   (And that is a LOT of borrowers!) You aren't eligible if your loan balance is more than 105% of your property value..... Yet they article goes on to say...

Addendum -- Thur Feb 19 -- Suze Orman said this morning that it only applies to conforming loans - not jumbo's. Also - you have to have GOOD CREDIT to be able to take advantage of it. Hmmm - Ok - you are trying to help people that are headed for foreclosure that haven't made their payments - but that have to have GOOD CREDIT in order to use this program? I'm speechless.... She also said that the payment then resets back to what it was in 5 years....

The press release yesterday stated:

"In theory, (note the "in theory") homeowners facing foreclosure or borrowers owing more on their homes than their mortgages are worth would have more opportunities to refinance their loans so that they have lower monthly payments. Lenders would voluntarily participate in the government programs." "Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that -- if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac." Now - is this contradictory or what? Perhaps they should have said - borrowers owing 1-4% more on their homes than their mortages are worth - but not 5% or above....

This shows you how screwed up these government programs are....

Obama said, "it will do nothing to help "the unscrupulous or irresponsible."   Now - who determines who that is??

"He cited so-called speculators who took out risky loans on multiple properties to make money by selling them during the housing boom, lenders who took advantage of naive buyers by glossing over the fine print, and people who willingly bought homes that were way beyond their means."

Now - who is to determine whether someone bought a home beyond their means?

Does that mean the guy who's salary or income was cut (say a salesperson who's sales are down due to the economy) or who lost his job bought a home beyond his means?   So this doesn't apply to buyers who had unscrupulous lenders?   Obama's comments make absolutely no sense.

But he did get one thing right - he said "This plan will not save every home." In fact - I don't think it will "save" a single home... It is just one big boondoggle.

Obama said his plan was aimed at "rescuing families who have played by the rules and acted responsibly."

Who is to determine "who played by the rules" -- or which person "acted responsibly"?    Do you see the absurdity of that statement?

So - the person who has paid their mortgage for three solid years since buying - but who's income was recently reduced due to the economy and can't make their payments anymore - didn't act responsibly?   At the time - they thought they were being very responsible. But the economic rug got pulled out from under them. The homeowner was supposed to be a fortune teller and predict the future?

Who is to determine who acted "responsibly" and who didn't?

They define a "Responsible Homeowner" as a person who's mortgage is owned or guaranteed by Fannie Mae or Freddie Mac and their mortgage is not more than 105% of the current value of your home. Then - they can apply to refinance and lock in a lower interest rate.

So - apparently - if someone put 20% down - but the value of their home dropped 26% since they purchased -- then they are not a "responsible homeowner." Do you see the absurdity of this?

The goal is to lower many endangered homeowners' payments to no more than 31 percent of their income. Now - what if they have no income because they lost their job?

Does that mean that their payment will go to zero? I don't think so.

They won't be able to get the re-fi.

What if their income is now working at Starbucks? Since they still have income - does that mean their McMansion's payment will now be 31% of their Starbucks takehome pay?   I hope you see my point here....the absurdity of this... At what level of income is a sufficient income in order to qualify to get the rate or principal reduction?

Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com

But that depends on a high degree of cooperation by lenders who have been increasingly wary of new lending as the crisis has deepened.

It seems the plan will only assist certain people and leave out others like families in danger of losing their homes because of job loss. Such families will not be able to qualify because they wont earn enough income to pay even lower mortgage payments.

For those that do qualify here's how it would work. For a $250,000 mortgage at 7.5% interest, the borrower is currently making a payment of $1,750 per month. If the rate is brought down to 5%, the new payment would be $1,350 per month -- a savings of $400 per month. The cost to the federal government, (the tax payer) assuming a 50% match by the servicer: $200. For $1 million, the federal government could reduce the rate for 50,000 borrowers. By comparison, the same $1 million might purchase a handful of mortgages, or guarantee a few hundred.

Other remedies in the plan could include incentives for lenders and investors to reduce the principal on a mortgage though homeowners could be required to repay the reduction or interest rate subsidies at the end of the term of the loan or when they sell their home. In theory, the back-end payments would be covered by a rise in the homes value over time.

The question remains just who would qualify for this service and would it really make a difference? Nearly half of all struggling homeowners who have already received mortgage modifications from their lenders have fallen back into the foreclosure process.

Would it not make more sense to use this type of money to allow lower interest loans to everyone? Of course it would. Prices (and demand) are inversely related to rates. Yet - rates have been creeping up recently. Does anyone in Washington have a clue? Will they ever get one? I was thinking that even if they had engineered rates to drop to 4.5% - it wouldn't be enough - and here we are - approaching mid-5's... Helloooooo? Does anyone have a brain in DC?

Maybe it's just me but it seems the congress is using spoons to bail a sinking ship. Our industry needs some REAL incentives to get people to buy.

The Foreclosure fiasco is just that, a failure that was created by congress in 1977, Called the Community Reinvestment Act. The bill was intended to help first time home buyers.  What it did after riskier, unwise amendments and regulatory rulings were added to the bill in the Clinton era, was create subprime mortgages that put people in homes that could not afford them.   Today, congress is just adding fuel to the fire. And it is our industry that will suffer.

A total of 8.1 million U.S. homes, or 16 percent of all households with mortgages, could fall into foreclosure by 2012, according to a report by Credit Suisse.
Thur - Feb 19 article -- more info -- The Treasury indicated that 4 million to 5 million borrowers with LTVs between 80 and 105 percent who have made on-time payments on loans managed by the troubled housing finance compaies Fannie Mae or Freddie Mac will be able to refinance to at today’s lower rates. Borrowers with second mortgages are eligible as long as the first mortgage doesn’t exceed 105 percent. Comment - It appears to me that this program really only makes more people eligible to refinance - than otherwise would have. It does not help the people who have missed a few payments already.... Another Thursday news release

The $15,000 homebuyer tax credit didn’t survive the final negotiations on the stimulus bill.

Thu, 12 Feb 2009 14:49:54 -0600

The $15,000 homebuyer tax credit didn’t survive the final negotiations on the stimulus bill.

Reportedly - Congress slightly increased to $8,000 an existing $7,500 credit for first-time homebuyers and eliminated repayment provisions.

Please note that the $8,000 number isn’t yet finalized. It may turn out to be $7,500.

The move is sure to disappoint those who had favored a more generous $15,000 credit for all home buyers in the Senate bill.

The new credit is retroactive to Dec. 31, 2008, which means that anyone who buys a house this year, through August, won’t have to repay it. The legislation extends the effective date of the tax credit, which is for up to $7,500, to September 1 from June 30. Households that purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit as well.

First time buyers who used the credit in 2008 still have to pay it back over a 15-year period.

The real-estate industry had closely followed the tax credit debate, hoping that a larger credit would make potential buyers more comfortable at a time when declining values and rising job losses have scared off buyers.

“Washington needs to do more at compensating home buyers for the now considerable danger of yet lower home prices,” writes John Lonski, chief economist at Moody’s Investors Service. “The near-term stabilization of either the economy or the financial system may be impossible until the now 5.25% 30-year mortgage yield falls to something no greater than 4.5%, and even the latter may prove to be too costly.”

Comment -- I agree with Mr Lonski - and have been saying that for some time..... Rates need to drop. When will the politicians get it? In fact - I called the Fed in early 2006 telling them to get rates dropped somehow - or they will create the biggest financial disaster in US history since the Great Depression.   (Ben Bernanke's office didn't listen of course.... His secretary told me "Don't worry - Mr. Bernanke knows what he is doing..." I told her - I don't think he really does...and informed her that I was seeing the impact already...)

Interest rates edged up slightly at the end of January, and mortgage applications for new homes fell 14% during the four week period ending Feb. 6 from the previous four weeks.

Comment - Home Buyers -- does the slimmed down tax credit change your home buying plans? (I don't think so....)

Other provisions reportedly in the bill that could help housing markets and communities include:

* FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.

* Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.

* Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.

* Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.

* Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.

* Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations

* Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds

* Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.

HUD Advisory Opinion Suggests that Real Estate Brokerages and Their Agents Should Not Accept "Spiffs" from Home Warrantee Companies

Wed, 04 Feb 2009 18:06:52 -0600

My brokerage has never accepted such spiffs - instead - having the Home Warrantee company discount the buyer's policy by the amount of the credit that they would have given me..... In fact - we've always rebated any bonus or other payment to our buyer clients.

Funny that we sometimes have had to fight so hard with listing agents to have us select the home warrantee company - and not them. The home warrantee that we provide to our buyer clients is a much better one - with a $50 deductable - and just about everything under the sun - covered.

Many of the listing agents wanted the spiff as well as the "free marketing" that their chosen home warrantee company would send out on their behalf (including the listing agent's name and contact info. etc. in the literature) - which would have gone to my past buyer clients.

So - we just never let that happen...... Now - perhaps - there will be less of a fight - as the listing agents will be forced to do what we have been doing for many years because we thought it was more ethical....

The following is the release by IAR --

Illinois Association of Realtors (IAR) legal counsel reminded IAR members that in February 2008 HUD wrote an Advisory Opinion which seemed to indicate that there are no services, either administrative or marketing, that a real estate brokerage company or agent could provide on behalf of a home warranty company that would justify the home warranty company paying the real estate brokerage company or agent for those services. In other words, it appears that HUD believes any payment from a home warranty company to a real estate brokerage company or agent would violate RESPA provisions. Learn more about NAR's response to the opinion and analysis by IAR legal counsel at www.illinoisrealtor.org/respa

Toledo OH Congresswoman Marcy Kaptur Says Her Constituents Should Be Squatters in Their Foreclosed Home

Sat, 31 Jan 2009 16:03:53 -0600

Toledo OH Congresswoman Marcy Kaptur Says Her Constituents Should Be Squatters in Their Foreclosed Home. Toledo in a "depression."

She calls the lenders "vultures." Many have no had good legal representation according to her. Tells people they should demand that the lender produce the note. (Then of course - that note should be analyzed by an attorney...)

___________________________________________________________________________________________________________________________________

As Exclusive Buyer Agents - we provide expert research and negotiation for home buyers and investors in the Chicago area. Unlike "buyer agents" - we are specialists -- always 100% on the buyer's side.... NEVER EVER REPRESENTING SELLERS!
If you are thinking about buying / purchasing a home in the Chicago Illinois area, you will want to ensure that you have an agent that is on YOUR side – looking out for your best interests.
Relocation Advisors Group, Inc. represents BUYERS ONLY in the Chicago metropolitan area so that you have 100% representation - 100% of the time. SEE MORE TYPES OF PROPERTIES - including for-sale-by-owner, short-sale and foreclosure etc. We show ALL listings suiting your needs - from ANY Real Estate company.
If You Become our Client - We Tell You About the Negatives of a Home - Not Just the Positives. You Have an Unbiased Consultant and Advocate and "Personal Real Estate Coach" on Your Side....
Best of All - You are Nothing Out of Pocket to Us For Our Services...

If you have excellent credit and are thinking about buying a home in the Chicago Illinois area during the next 60-90 days:

Please Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail us at info@relocationadvisorsgroup.com to schedule a complimentary initial consultation.

Just Announced - Good News For Renters and Owners of Homes That Get Foreclosed Upon That Are Freddie Related.... Freddie Mac Will Allow Renters to Stay in a Foreclosure

Fri, 30 Jan 2009 16:08:54 -0600

Yahoo Finance Article

On stuff like this - it pays to read more than one article - as each article has extra info... So - I've provided the articles out there thus far...

Mortgage finance company Freddie Mac said it will allow some borrowers to rent out their homes after losing them to foreclosure.

*** Comment -- the foreclosed upon owner gets to keep the rent after they officially lost the house???

It goes on to say....

The goal of the new policy is to prevent properties from becoming vacant so they won't fall into disrepair.

***Comment - now - I really don't think that renters will be kicking in anything to repair the owners property.   But it would help in keeping the heat on during the winter vs. having to winterize it etc. and keeping the snow shoveled - and help prevent vandalism. Since some renters can't count on a distressed owner fixing something critical such as a furnace - my bet is that a renter in that situation might just get the fix done to have the heat and then deduct it from their rent payment... (not always authorized of course - in their rental contract)    But per another article - Freddy is going to allow owners to rent back after being foreclosed upon - at market rates. Even then - it is debatible how much of a repair they would spring for.   So - Freddy is now getting into the landlord business....... Wonder how much in govt money and new hires that will cost to administer...

The article goes on to say....

Freddie Mac said it will allow renters to remain in their homes even if their landlord enters foreclosure. Freddie currently has about 8,500 properties in the foreclosure process, but many of those are vacant.

"Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market," said Freddie Mac Chief Executive David Moffett.

Fannie Mae said it has stopped about 20,000 foreclosure sales and halted 6,300 evictions of owners or renters this winter.

"Under Freddie Mac's new policy, tenants and former property owners need to demonstrate that they have enough income to pay the rental bill."

*** Comment -- former property owners?? They aren't paying the rental bill. I think someone mis-worded this in the release....

It goes on to say....

Freddie Mac also said it would consider reinstating a mortgage for those borrowers who can qualify for a modified loan.

Both Fannie Mae and Freddie Mac also said Friday they would extend a previously announced suspension of evictions through the end of February.

***Comment -- (Presumably - to keep people from having to move in the cold? More likely - perhaps they just want the heat to remain on during that time....)

But a Marketwatch article - states that is is March - not Feb (like the Yahoo Finance article) - in the headline - but not in the body of the article. Go figure!

Marketwatch Article

And that article states:

"It may be that a borrower can afford a market rent price but can't afford all the ancillary costs of maintenance," said Freddie Mac spokesman Brad German.

*** Comment - Which is precisely my point. Why would they kick in for maintenance?

It goes on to say..

"This would get them a smoother transition to find a new home or until Freddie Mac sells the home."

*** Comment -- Well - they sure won't be buying a new home after that! Renting one? Perhaps - if they have more than a few months deposit to put down.. since their credit will be trashed. "Place to live" would have been better words to use (such as in a USA Today article)

"Fannie Mae will also provide financial assistance for a "transition" to individuals that decide to vacate the property."

*** Comment - I wonder how the owner will know about this. A mailing by Fannie to them?

However, he argues that program will have costs. Fannie Mae and Freddie Mac will likely need to hire property managers to collect rent. "Fannie Mae is not set up to be a landlord," he said.

*** Comment - exactly my point from above....

USA Today Article

Details of the program:

•Leases will be on a month-to-month basis.

•Tenants and homeowners will only have to pay market-value or existing lease rents, not the mortgage payments. Freddie Mac will hire a property management company to determine that amount.

•Tenants and homeowners must be able to show proof that they have enough income to pay the monthly rental amount.

•Freddie Mac will also explore loan-modification options that might be available for some borrowers.

In mid-December, Fannie Mae also rolled out a policy that allows renters in a property that is being foreclosed on to rent that home rather than be evicted. It does not include homeowners. Up to 10,000 families are expected to be helped by Fannie's rental policy; Freddie expects about a 30% acceptance rate.

The Federal Reserve this week announced a policy to help some distressed homeowners avoid foreclosure. The Fed said it would work with companies servicing mortgages now owned by the Fed to modify qualifying mortgages of homeowners that are 60 days or more delinquent on payments.

Fannie and Freddie combined own or guarantee about half of the $10.6 trillion in outstanding U.S. home loan debt.