A View from the Beach

Homebuyer Tax Credit Extension - Online Presentation

Jeff Baxter (Prosperity Mortgage) — Mon, 30 Nov 2009 11:14:03 -0600

Yes, the $8,000 tax credit has been extended for the first time homebuyer to April 30, 2010. In addition, the move-up/repeat buyers have an opportunity to receive a $6,500 tax credit. You have all probably seen information on this - you might have even seen too much information.

What I've done here is post a link to our online presentation of the new and extended tax credits that you can view and send to your client base if you think it's worthwhile. I hope this helps you build more business as a provider of expert information to your clients.

Click Here For First Time Homebuyer & Move-Up/Repeat Buyer Tax Credits

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Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

What is 1435?

Jeff Baxter (Prosperity Mortgage) — Sat, 28 Nov 2009 13:58:02 -0600

This is the first in a series of posts on time managment. I've exerpted some information from my monthly Sales Update Newletters (produced by Dave Hershman).

What is 1435? It is the number of minutes left in the day after we waste five minutes. For the average person, we waste over one-third of our workday, either procrastinating or working on tasks that will not help us achieve our long-term objectives.

The key to getting more done? Developing a sense of urgency with regard to what needs to be accomplished. A simple exercise will demonstrate the different state of mind that we must achieve.

Imagine your last vacation. The serenity of knowing that you didn't have to check messages or get up at a certain time.

Now think of the day before you left on that vacation. Do you now have a different memory? Was that day a little more stressful? We would venture to say that the day before you left was your most effective time management day of the year. That day you accomplished more than any other. You quickly determined priorities and went about achieving those priorities. If you failed, you would not get out of town on time.

The first step in getting more done is realizing what you need to accomplish. Once you have a clear mission, you will realize that many of the tasks that now occupy your time are actually keeping you from achieving your goals.

Let's take a look at an example of linking your mission to your actions. Think of a customer you could not move off the fence for weeks or months. Perhaps they purchased. Perhaps they did not. Either way, the process was a waste of your time. Even if there was a sale hanging in the balance, think in terms of the opportunity costs of lost time. Calculate how many hours you spent on this transaction. The perpetual shopper can consume hundreds of hours of your time. The more time you spend with the customer, the more likely you will feel obligated to keep going to receive a return upon your investment. But what a cost! Hundreds of hours to achieve a paycheck of _____?

More significantly, how much could you have earned had you spent these hundreds of hours marketing and working with more productive customers? In reality, the hours that you are spending with shoppers are actually preventing you from marketing and developing relationships that would be much more productive.

So what do you do with the shopper? First, you might accomplish a more thorough job of assessing their goals and needs up front. Perhaps you are encouraging unprofitable relationships by forcing action when the potential customers are not psychologically ready. Simple questions regarding their goals might give you a clue to their intentions.

Ask about their last purchasing experience, how long have they thought about purchasing, have they searched before and not purchased and if so, what has changed at this juncture?

Should you fire these people? Of course not. Nurture the relationship by giving them goals to meet before you become actively involved. If they insist upon monopolizing your time without a reasonable chance of return benefits, refer them to someone else who would appreciate such a referral-perhaps a neophyte. Chances are those who are less experienced have much more time on their hands and can use the experience to learn. What better way to learn customer service and negotiation skills than on live customers. Perhaps you may be entitled to a referral fee if they get lucky.

We've said this over and over, but can't stress it enough, time is our greatest resource. Every day we waste our time in a variety of ways. If you ask every business person for a self-assessment, almost all of them would reply: I need to manage my time better. Next post, we will become more specific by adding pointers that may help you conserve your most precious resource. If we have more time, we can make more money-with less stress! Certainly that is not a bad goal!...

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Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

December Newsletters are Posted

Jeff Baxter (Prosperity Mortgage) — Sat, 28 Nov 2009 13:38:24 -0600

I've updated my website with December's Newsletters You can click on the "Newsletters" tab at the top of the page or click directly through to each newsletter below:

December Real Estate Trends: Current news on the Real Estate front.

The Real Estate Page - Disputing Your Property Tax: How to dispute your tax assessment if values have dropped in your area.

The Sales Update - Time Management Part 2: Part 2 of our series on managing your time more effectively.

Feel free to use them with clients.

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Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Bumpy Road - Housing Starts Fall

Jeff Baxter (Prosperity Mortgage) — Fri, 20 Nov 2009 16:13:49 -0600

Housing starts failed to hit the 600,000 annual pace most economists expected for October. Our report is here: October Starts

Even after a string of monthly gains over the past few months, starts are 30% below their level of a year ago, driven mostly by multi-family starts. Single family home starts are only down 11% from a year ago.

Here's the take from Calculated Risk: Housing Leads the Economy

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Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Making the Most of an Appraisal in Any Market

Jeff Baxter (Prosperity Mortgage) — Wed, 04 Nov 2009 05:47:04 -0600

My Real Estate Page newsletter for November discusses how to make the most of an appraisal in this market. I've sent this issue to every client doing a refinance and every listing agent I know. Appraisals are the subject of much conversation in our industry and much of the conversation is definately not happy talk. Appraisers are sworn to identify the accurate value of a property to support mortgage loans that are secured by real estate. Appraisers have to deal with a wide variety of factors, not the least of which is the new HVCC structure that limits the contact between the apprasier and the lender.

If you want to obtain the most accurate appraisal of your, or your client's property, you need to be proactive in the process.

I've posted the newsletter on my website and attached a copy of the file to this email. You can access the PDF version to print or download at this link: Obtaining The Best Appraisal in Any Market

Please feel free to distribute to your clients, especially your sellers. I hope it helps your business and if you have any questions, please call or email me at your convenience.

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Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Newsletters for November are Posted

Jeff Baxter (Prosperity Mortgage) — Sun, 01 Nov 2009 20:12:58 -0600

Here are my newsletters for the month of November. They are posted on my website - www.sjbaxter.com - or you can click on the links below to access the PDF files. Feel free to distribute to your clients.

November 2009 Real Estate Trends - Will the Tax Credit be extended? FHA to move to 5.0% down?

November Real Estate Page - Obtaining the best appraisal in any market

November Sales Update - Time Management for sales professionals

I'll post more detail in a day or so about each topic, but wanted to give everyone quick access now.

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Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

CONDO-FinancingIssues-MINIUMS

Jeff Baxter (Prosperity Mortgage) — Sat, 31 Oct 2009 11:03:51 -0500

Condos, especially condos purchased as second homes or investment properties in a resort area, continue to drive buyers, sellers, mortgage lenders, and Realtor's crazy.

One of my referral agents had a client call me about 4 weeks ago to finance a condo in Bear Trap Duneshere at the beach in Delaware. Now, I do loans in Bear Trap all the time and have already fought the battle with my lender and Fannie/Freddie that this is NOT a Resort Condo or a Condotel. And, I understand that if you put less than 25% down on a condo, there is a 3/4 point add-on to the price of the mortgage (assuming it's sold to Fannie or Freddie).

So what happened you ask. The borrower consulted an out of state mortgage broker (referred by a relative) who told her, no problem, I can give you the same rate with 20% down AND "no issue getting a condo approved."

Fast forward, with a "locked" rate in hand, the borrower moved ahead with the out of state broker thinking she'd gotten a GREAT deal. Problem is, I got a phone call late yesterday that the broker's lender can't get the condo approved "by Fannie Mae" and therefore they can't close the purchase loan on Tuesday - can I just take her broker's loan file and close the loan myself keeping the great rate? Unfortunately, I can't. We have to order a new appraisal, submit a new mortgage application, and lock today's rate. I can probably close in 2 weeks if all goes well, but you know, the pipeline is pretty full in our processing shop right now with first time buyers trying to close by November 30th.

Lesson learned? If you are buying, selling, listing or showing a condo in a resort area - know the issues. Use an experienced lender that does condo financing regularly. Then you won't need to worry about a delayed settlement, lost rate locks, and other financial penalties and wasted money.

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Let's get organized

Jeff Baxter (Prosperity Mortgage) — Thu, 29 Oct 2009 21:29:38 -0500

As many of you know, I've been aksed to serve on the marketing committee for the Sussex WCR chapter. My first effort is to build our presence as a group on Active|Rain so I started this group for our Chapter.

Here are some links to help get you situated:

Chapter website

National WCR Website

SCAOR

Delaware Association of Realtors

Don't forget to buy some of the cookbooks we are selling as a fundraiser and I'll see you at the Annual Dinner and Officer Installation on November 19th at Sussex Pines.

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

New Home Sales Drop - The World Doesn't End

Jeff Baxter (Prosperity Mortgage) — Thu, 29 Oct 2009 21:06:08 -0500

I have to admit, my absolute favorite blogger is Calculated Risk. He writes well, covers real estate and finance, and doesn't sugercoat anything.

When September New Home Sales (Report is a PDF file to print or download) came out yesterday, I wanted to see CR's reaction. You see, sales dropped 3.6% to an annualized rate of 402,000. This was down from a downwardly revised August number. It was also the first drop in 6 months. Not the best news.

Here is CR's take: New Home Sale Decrease in September

New home sales are far more important for the economy than existing home sales, and new home sales will remain under pressure until the overhang of existing homes declines much further. Builders are having a very tough time competing with lower priced distressed sales in the existing home market.

It's going to be interesting to see how the expiration of the FTHB tax credit impacts sales going forward. It probably had more of an effect on new home sales becuase of timing (the sale has to close by 11/30 so a newly constructed home had to be purchased much earlier than an existing home). Also, the recent flurry of stories about a compromise agreement to extend and even expand the tax credit may actually goose sales, both new and existing in coming months. We'll see. What do you think?

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Lets Talk About Where Rates are Headed

Jeff Baxter (Prosperity Mortgage) — Thu, 29 Oct 2009 19:09:10 -0500

I think we can probably all agree that interest rates are probably headed higher next year. The Federal Reserve's MBS purchase program, while extended through March 31st, will be wound down. The massive Federal spending spree we've seen this year can only add to inflationary presuure.

Thinking about how the almost dead certainty of rising rates will impact buyers, we've put together an online presentation explaining our concerns and how increasing rates will impact the cost of purchasing a new home. Even beyond rates, your buyers need to be concerned about the continued tightening of underwriting guidlines.

This is a nice presentation to send to your clients that are considering a purchase but are sitting on the fence. Hope it helps!

Click Here For Mortgage Interest Rate Forecast for 2010

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Flood Insurance Premiums Increasing by 8%

Jeff Baxter (Prosperity Mortgage) — Sun, 04 Oct 2009 10:17:54 -0500

On October 1, 2009, important changes to the National Flood Insurance Program (NFIP) will take effect. There will be an increase in rates, the standard deductibles will increase, and the basic insurance limits will increase. However, the total coverage available will stay at a $250,000 maximum. These combined changes will result in an average premium increase of 8 percent. The increases will apply only to policies that are written or renewed after October 1, 2009.

I'm going to include much of the detail from the FEMA announcement, so please bear with me. The increase in the minimum deductible and the rate increases are the most important aspects of this annoucement. It's also interesting that they are finally doing away with the paper maps.

For more information about the NFIP, please visit www.FloodSmart.gov.

The standard deductible of $500 is being discontinued for all properties. The new standard deductible for Post-FIRM (Flood Insurance Rate Map) properties will be $1,000 and Pre-FIRM properties will be $2,000. Owners of Pre-FIRM properties have the option to buy back the $1,000 deductible within 60 days of the renewal of their flood insurance policy. Otherwise, deductibles cannot be reduced midterm unless required by the mortgagee. It is important to remember that there is a 30-day waiting period unless it is a requirement for loan closing. In most cases the deductible is only a fraction of the average flood insurance claim, which can be substantial.

Just as with other lines of insurance with high claim potential, such as wind insurance, it is not unusual for minimum deductibles to increase to foster the soundness of the program. The NFIP's previous deductibles were in place for almost a decade. In taking inflation into consideration over time, the new standard deductibles being changed effective October 2009 are comparable in value to the previous deductibles when they were first established.

The basic insurance limits are also increasing for all categories of buildings and contents:
The basic limit for 1-4 Family Dwelling Coverage will increase from $50,000 to $60,000. Additional insurance limits are $190,000 for a total limit of $250,000.
Other Residential Building Coverage basic limit will increase from $150,000 to $175,000 with additional insurance limits of $75,000 for a total limit of $250,000.
Non-Residential Building Coverage will increase from $150,000 to $175,000 for the basic limit. Additional insurance limits are $325,000 for a total of $500,000.
Residential Contents Coverage basic limit will increase from $20,000 to $25,000. Addition limits are $75,000 for a total insurance limit of $100,000.
Non-Residential Contents Coverage basic limit will increase from $130,000 to $150,000. Additional insurance limits are $350,000 for a total insurance limit of $500,000.

The premium increases vary by Zone. V Zones are coastal high-velocity zones and will have larger rate increases as a result of the Heinz Center's Erosion Zone Study, which clearly indicates that current rates significantly underestimate the increasing hazard from steadily eroding coastlines. The premium increases by zones are as follows:

V Zones

V Zone premiums will increase 10 percent.

A Zones

A Zones, which are non-velocity zones that are primarily riverine zones, will increase by 8 to 10 percent.

Post-Firm A1-A30 and AE Zones will increase 10 percent.
Pre-FIRM AE Zones premiums will increase 10 percent to decrease the amount of subsidy in our Pre-FIRM rate.
AO, AH, AOB, and AHB, which are shallow flooding zones, will have an 8 percent increase in premiums.
Unnumbered A Zones, which are remote A Zones where elevations have not been determined, will have increase of 10 percent in premiums.
A99 Zones, which are approved flood mitigation projects, e.g., levees still in the course of construction, and AR Zones will have premium increases of 10 percent.

X Zones and Miscellaneous

X Zones, which are zones outside the Special Flood Hazard Area, will have an increase of 8 percent for a Standard Risk Policy and no increase in premiums for a Preferred Risk Policy (PRP).
Mortgage Portfolio Protection Program (MPPP) will have an increase in
premiums of 10 percent.

Discontinuance of Paper Flood Insurance Rate Maps

Effective October 1, 2009 FEMA will discontinue the distribution of paper maps. The paper maps will be replaced with Digital Flood Insurance Rate Maps (DFIRMs). Replacing the paper map products with digital versions is more environmentally friendly and will improve the usability of FEMA's flood hazard data. It also provides users with a more powerful tool for insurance activities and flood risk management.

Jeff Baxter - Mortgage Banking at the Beach

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Is Time Running Out for First Time Buyers?

Jeff Baxter (Prosperity Mortgage) — Sun, 04 Oct 2009 09:54:42 -0500

As we enter into the last quarter of 2009 and prepare for 2010 I have some concerns that the sun will be setting on the advantages for the first time homebuyer. First and most importantly, the $8,000 tax credit expiring midnight November 30th.

Second, home prices have begun moving up in the lower end of the market - where the first time buyer is typically looking. And third, we are surely going to pay the piper with regard to interest rates in the future.

We've laid out these concerns in our monthly online presentation entitled "Is time Running Out For The First Time Homebuyer?"

If you would like to know more about "Is Time Running Out for First Time Homebuyer?" click below to find out more!

Click Here For Is Time Running Out for First Time Homebuyer?

Please feel free to share the presentation with your clients, friends and family. If you are looking for financing in the mid-Atlantic area (DE, MD, VA, PA), please give me a call to discuss.

Jeff Baxter - Mortgage Banking at the Beach

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Prosperity Mortgage Pirate Duck Takes 3rd in RPAC Duck Race

Jeff Baxter (Prosperity Mortgage) — Sun, 13 Sep 2009 12:46:17 -0500

SCAOR (Sussex County Association of Realtors) sponsored a fun, if rain filled, evening at Jungle Jim's in Rehoboth Beach this past Friday to raise money for RPAC - the Realtor Political Action Committee. Most of the local real estate offices purchase an "Office Duck" to decorate and race as a way to raise money. I decided that Prosperity Mortgage would do the same and challange the real estate offices I service and support. My Pirate Duck, the Rate Slasher, is seen here.

It was down to the wire as office ducks jockey for top duck; small ducks vie to win prizes. Which office had the most REALTORSÂ® attending?..... It was time for the Prosperity Mortgage Pirate Duck to emerge from seclusion and have a little fun.

Although we missed out winning the Dapper Duck Award for "best dressed" to Little Miss RPAC 2009 submitted by the Rehoboth Beach Long and Foster office, I think the trophy was stolen. Here's a picture of Little Miss RPAC and I'll let you decide.

Regardless, the evening was a blast and my Pirate Duck came in 3rd in the overall office duck race, handily beating Little Miss RPAC and the entry from my other Long and Foster office in Bethany Beach - Biker Chick.

Individual realtors also purchased ducks and raced them as well. Entertainment was provided by a steel drum band and everyone had a great time.

Events like this are always a fun way to blow off steam and get aways from the pressures of the business we're in. Whether selling houses or loans, this market can make us all a little crazy.

I produced a "virtual tour" of the event for everyone that couldn't make it in person. Hope you enjoy it:

Click Here for the Show

Jeff Baxter - Mortgage Banking at the Beach

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Top 5 Kitchen Improvements

Jeff Baxter (Prosperity Mortgage) — Tue, 08 Sep 2009 20:54:55 -0500

[Excerpts from Jim Remley (Real Estate Agent, Oregon) new book entitled Sell Your Home in Any Market - 50 Surprisingly Simple Strategies to Sell Your Home Fast and For Top Dollar!]

Your kitchen can make or break the sale of your home. Why? A potential buyer might overlook the fact that the bedrooms are on the "smallish side", but if the kitchen does not measure up, you may want to consider the top 5 kitchen improvements, as recommended by Jim Remley, a top real estate agent in Orego!

•1. Sinks & Faucets - Clean your faucets, re-caulk your sink and if it's chipped, go to your local hardware store for a fixer kit. If it's really beat up, maybe it's time to upgrade the faucets, the sink or both.

•2. Appliance Upgrade - Updated appliances that match will make buyers take a second look. It's not cheap-but can make the real estate sign change from "For Sale" to "Sold". As well, small appliances that take up counter space, and are rarely used, should be packed and stored (break makers, toaster oven).

•3. Kitchen Cabinets - You have two options here - replace old cabinets or opt for the less expensive option of re-facing the older ones. Make sure that whatever you do, that they match your appliances.

•4. New Lighting - Buyers are looking for bright, yet soft lighting which makes working in the kitchen a joy. In addition to upgrading the fixtures, consider installing lighting under cabinets for "task lighting" which throws light to countertop work areas below.

•5. Counter Tops - The countertop is the one thing that ties every piece of your kitchen together. If not, the most expensive and time consuming is to have them totally replaced. However, there is a cheaper update where you can have them resurfaced with stone veneer, tile or wood laminate. And don't forget to update your back splash as a worn out backsplash can make the best countertops look dated or dull.

Hope these tips are helpful.

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

10 Strategic Get-Into-Escrow-Quickly Tips –especially for the 1st Time Homebuyers Tax Credit

Jeff Baxter (Prosperity Mortgage) — Mon, 07 Sep 2009 08:28:59 -0500

Great list of tips for the 1st time home buyer, especially if you are trying to take advantage of the $8000 tax credit. However, I'd advise not looking at short sales or REO at this late date if you want the credit. Chances are you won't get to settlement by November 30th. Good luck

Via Barb Fischer (RD Brown Real Estate):

You still have time to take advantage of the 1^st Time Homebuyers Tax Credit, but you’ve got to act quickly and strategically. You must close escrow by November 30, 2009, which means you really should enter into contract by October 15. (The government could extend this deadline, but you can’t count on it.) There’s a lot of bidding competition right now, and issues can come up during escrow, so you’ll want to give yourself as much time as possible. Even if the Tax Credit isn’t your main motivation, you can still cut down on lengthy searches and write fewer offers by following these strategic steps. Many of these you’ll do upfront, even before you start your actual search. It’s a lot like a great paint job—the best results come from the most diligent prep work.

1. YOUR LOAN—BE PREPARED. Clearly identify your loan amount, loan program, and source of any gift funds upfront. Switching programs midstream can cost you time and might result in the loss of an offer. You’ll need a preapproval from a direct lender, and one who is available to write new preapprovals as required (on weekends, too). Once you’ve found the lender you want to work with, stick with them. Loyalty is mutually beneficial. Be prepared to write an earnest money check for 1% of the purchase price –or more. You may also be required to put this money into escrow upon seller acceptance—even before the short sale is approved by the bank. Even if you’re paying cash, plan on showing proof of funds.

2. YOUR LOAN—STAY PREPARED. Keep all your paperwork close at hand and updated, including your FICO scores and proof of funds to close (down payment and closing costs). Scan it and have it ready, so if the seller requires you to prequalify with their lender too, you will have everything ready. They may also ask you for DU approval (desktop underwriting).Don't buy anything that will affect your credit score, especially big ticket items like furniture or a car. Your credit score may be rechecked up until the day of closing and a new purchase may affect your ability to get a loan.

3. YOUR SEARCH—BE $$$ REALISTIC. Have your REALTOR® pull the solds for the past 3 months in your desired neighborhood and pay particular attention to the past 30 days. If prices are on the rise, make sure this is still a realistic area for you. Keep in mind that most people are looking for the same thing—the nicest house in the best neighborhood for the lowest price. You’ve got competition!

4. YOUR SEARCH—TARGET IT. Zero in on just a few favorite neighborhoods. This is not the market to be looking all over the entire county. If prices are rising in your first choice community, switch quickly. Have a backup area in mind from the beginning.

5. YOUR SEARCH—REALLY KNOW WHAT YOU WANT. Sit down with all decision makers involved and have a heart-to-heart about which amenities and features you really need and want, and which you can live without. Don’t let your emotions get in the way. Be logical when you make your wish list; because as soon as you start looking at homes, your emotions will kick into high gear.

6. YOUR REALTOR®-- PUT THEM TO WORK. Full time professional REALTORS® love what they do, and will be your greatest asset in this turbulent market. Their connections, perseverance, hard work and loyalty will get you the results you want. Be prepared to sign a Buyer Broker Agreement, which spells out the specific duties of both parties. if you’re not willing to make a commitment, the best agents won’t take time away from their loyal clients to help you.

7. THINK OUTSIDE THE BOX. Do you really have to have 2 full baths? There’s less competition for homes with 1 bath, and you could add another one later, or get a rehab loan upfront. Or how about a 2-on-1 instead of a single family home? Extra space or rental income can be a great asset.

8. LOOK AT THE CONTINGENT/PENDING LISTINGS. Another reason for having a good REALTOR® at your side. A very high percentage of escrows do not close with the original buyer, so it pays to track these homes and put in a competitive backup offer . In San Diego we now have a “contingent” status, where a short sale seller has accepted the offer but the bank has not yet approved it. Many of these first-position buyers are putting in offers on several homes at once, so look for homes which have been in contingent/pending for at least 1 month or more. Chances are that many short sale listings will need a new buyer, and when they do, they will need one quickly.

9. LOOK FOR HOMES NOT ON THE MARKET YET. Your REALTOR® can help you here, too, by checking the recent NOD (notice of default) filings in your targeted neighborhoods. Another possibility—homes which are going to auction within the next few weeks. Many of these would have made great short sales but the seller stayed in denial too long, or perhaps didn’t’ get the loan mod they were seeking. If your agent can get a short sale listing from the seller, and you write a strong offer and present it to the bank, you have a shot at getting the house, and helping the seller salvage their credit.

10. PUT IN OFFERS ON BOTH SHORT SALES AND REOs (and regular sales). You never know which will pop first and it’s best to cover all your bases. The advantage with regular and REO sales is simple—you’re dealing with the owner (private seller or bank). The decision can be made relatively quickly, so you can get into escrow quickly. However, everyone else knows this too so the competition is fierce, with dozens of offers on almost every decent home. Short sales can take a long time and there’s a good chance the approval won’t come before your deadline. The good news is you still can get some tax benefits from selected home purchase related fees. If it’s the house you really want, in the long run you’ll be doing well.

If the First Time Homebuyers Tax Credit is your main goal, make sure you know all the basics, plus the IRS rules. http://www.irs.gov/newsroom/article/0,,id=204671,00.html. For more specifics on the difference between REOs and short sales, see my blog at http://activerain.com/blogs/barbfischer

Happy house-hunting to you!

10 Strategic Quick Escrow Tips ©2009 Barb Fischer San Diego

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Labor Day - End of Summer

Jeff Baxter (Prosperity Mortgage) — Sat, 05 Sep 2009 21:30:39 -0500

The "end of summer" at the beach is actually the beginning of some great weather conditions at the shore. September and October are generally very mild and sometimes we even get some nice beach days. The real estate market has picked up considerably over the past 4-6 months and sales are definately happening. The mix of my business with regard to refinance mortgages versus purchase money mortgages has firmly turned in favor of the purchase side of things. We closed 14 loans in August and 10 were purchases, including 3 jumbo mortgages.

Now, I'm not talking about short sales and REO properties. Some buyers are still searching for "deals" on the distressed side of the market, but it's not easy. You will more than likely wait and wait for contract acceptance by the lending bank, while other buyers get great deals on non-distressed sales. None of the purchase loans I closed this summer were on short sales or bank owned properties, yet that seems to be all the media talks about.

I'm looking forward to a great Fall season at the beach. If you are looking for a vacation home or investment property, I can recommend the best realtors in the area. If you want to discuss restructuring your current mortgage, give me a call as well. Mortgage rates are still very low - even lower than 2 months ago. I hope you had a great summer and I look forward to speaking with you about your financing needs. All the best!

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Owning vs. Renting Gap Shrinking

Jeff Baxter (Prosperity Mortgage) — Sun, 23 Aug 2009 09:35:25 -0500

The recent study released by the Associated Press that was conducted by Marcus & Millichap Real Estate Investment firm shows that the scales are tipping toward ownership. The gap between the mortgage payment on a median priced home has shrunk when compared to median rent.

View our presentation here: New Study Shows Owning vs. Renting Gap Shrinking

Reminder: Less than 100 days until the $8,000 First Time Home Buyer Tax Credit expires

S. Jeffrey Baxter - Prosperity Mortgage Company

33298 S. Coastal Highway - Bethany Beach, DE 19930

(302) 602-1067 Cell - jeff.baxter@prosperitymortgage.com

Links:

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Bethany Totem Pole

Jeff Baxter (Prosperity Mortgage) — Tue, 28 Jul 2009 06:37:08 -0500

In the summer of 2002, Peter "Wolf" Toff drove into the seaside resort of Bethany Beach in his Winnebago. He arrived at the City Hall wearing cut-off jeans, a beer t-shirt and a deep golden tan, remembers Bethany City Council Woman Margaret Young.

Young did not envision the Hungarian-born Toth, a sculptor who had carved more than 60 statutes of American Indians throughout the United States and Canada, to be so laid back.

But laid back and easy going has been a way of life for Toth since 1972, when he completed his first scuplture of a American Indian, carved from the cliff of Wind and Sea Beach in La Jolla, Calif. While completing his second sculpture, in Sand Run Park in Akron, Ohio, he made a life-changing decision.

"I will make a sculpture of an Indian, to honor them, in each of the fifty states," he reportedly decided according to www.dcschumaker.com, a site that chronicle's the artist's work.

Toth identified with the American Indians and sought to honor them through his works. The son of an artist, Toth spent much of his early childhood living in fear in Hungary. A 1956 uprising, allowed him, his parents and 10 siblings, to escape the country. The family spent years in refugee camps before finally immigrating Akron, Ohio.

Once he made the decision to carve the sculptures, which he calls "Whispering Giants," Toth set off in his "whisper" mobile and landed in Bethany in 1976. Toth first approached Rehoboth Beach about building a statue there, but the city declined his offer. Bethany readily accepted, said Young.

The statue stood for more than a decade and became a focal point for the town center.

"It lasted a decent amount of time, then the termites got it," said Young.

The city lived without a totem pole for a few years. Then in 1994, the city council commissioned Dennis Beach to build a new one.

"One Christmas the city put a Santa Claus hat on the statue," Young said. "The Indians raised cane. They didn't think it was cute or funny."

Within a few years, termites destroyed that statue from the inside out.

In 2002, the city commissioned Toth to build a replacement statue. The statue cost the city $36,647. Toth received $15,000. The wood cost $14.757 and installing and securing the sculpture cost $6,890.

Toth carved the statue out of Pacific Northeast Redwood, which naturally repels termites. The city expects the three to last between 50 and 150 years, Young said.

This is Toth's dream, as well.

"With proper care my statues should be around for a long time," he told www.dschumaker.com. "Years... maybe decades after I'm gone."

(Story originally published in Coastal Sussex Weekly.)

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

June Existing Home Sales - Slow, Gradual Recovery

Jeff Baxter (Prosperity Mortgage) — Sat, 25 Jul 2009 16:30:41 -0500

The NAR released existing home sales on Thursday, July 23rd and our summary report is here: June Existing Home Sales

Highlights:

Sales in June rose 3.6% to an annual rate of 4.89 million units which was better than the forecast annual rate of 4.83 million. This is the 3rd consecutive month of increases and suggests that a bottom may have been reached in home sales.

It is estimated that 30% of sales were to 1st time homebuyers because of low prices and tax incentives and another 30% are distressed sales (short sales and foreclosure sales).

Median home prices continue to fall and are down 15.4% over the past year to $181,800.

The best analystics are at the Calculated Risk blog: June Home Sale Graphs

Jeff Baxter

http://www.sjbaxter.com/

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Parents Can Help Children Buy a Home

Jeff Baxter (Prosperity Mortgage) — Sat, 25 Jul 2009 16:24:29 -0500

Our July Newsletter - "The Real Estate Page" - has been posted to the website. This month we discuss how parents can help their children purchase a home. Cash, credit, and income are the three (3) critical areas where parents may be able to help. Click here - PARENTS HELPING CHILDREN - to read how. As always call or email me for details and assistance.

Jeff Baxter

http://www.sjbaxter.com/

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Time is Running Out for the $8,000 Tax Credit

Jeff Baxter (Prosperity Mortgage) — Sat, 25 Jul 2009 16:16:13 -0500

The deadline to receive the benefits of the $8,000 tax credit is fast approaching - are you ready? Are your clients ready?

You might hope Congress increases the credit and extends the timeframe beyond this December, but do you really want to have your client sitting there waiting and then Congress doesn't act?

Do you want to learn:

The difference between a Tax Credit and a Tax Deduction
How much time do you really have before it expires
How to receive your money faster

I thought you might like to know more about "$8,000 Tax Credit -- How much Time is Really Left?" click below to find out more!

Click Here For $8,000 Tax Credit -- How much Time is Really Left?

Jeff Baxter - 302-602-1067

http://www.sjbaxter.com

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Appraisals, HVCC, and You

Jeff Baxter (Prosperity Mortgage) — Tue, 09 Jun 2009 21:59:37 -0500

You've all probably read numerous posts about HVCC and its affect on the mortgage process for both purchases and refinances. We've even seen the Wall Street Journal today write about deals going down the tubes because of it AND there is a petition to get HVCC stopped.

This new regulation is called HVCC and it affects the way appraisals are being done for mortgages. I wanted to get you some important information on the kinds of changes you will see as a consumer and a real estate professional.

1. An increase in costs
2. Longer turn times (resulting in longer lock times)
3. Need to pre-pay for services

We've put together an online presentation to help you understand the impact this has. Feel free to send it to friends and clients.

Click here for a presentation on the HVCC and how it affects you

Jeff Baxter

Your Mortgage Banker at the Beach

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

What is the NAR Affordability Index?

Jeff Baxter (Prosperity Mortgage) — Wed, 22 Apr 2009 13:15:19 -0500

The Affordability Index that is published by the National Association of Realtors is being discussed more today than ever before. There are three factors that make up the Index and whether the Index is high or low can make a difference to you if you are considering purchasing a new home.

This presentation was created to explain how the Index was created, what it means, and how it has performed historically. With the index at an all-time high in February, it's important that you and your clients understand what it means - you'll be hearing it in the media.

If you would like to know more about "The Affordability Index" click below to find out more!
Click Here For The Affordability Index

Also, here is a link to the NAR's Affordability Index itself so you can see the real numbers.

Jeff Baxter - Mortgage Banking at the Beach - jeff.baxter@prosperitymortgage.com

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Time for a Mortgage Check-up?

Jeff Baxter (Prosperity Mortgage) — Tue, 17 Mar 2009 22:08:08 -0500

With the new stimulus package being passed by the government it has never been more important to get a mortgage check-up than today. It is critical that you assess how your mortgage compares with what is available and especially how the new 105% refinancing relief package my affect you and your current situation.

The annual check-up includes:

HBDR (Household Blended Debt Rate) assessment
Identity theft assessment
Equity assessment
Review of all current programs available in today's market

If you would like to know more about "When was the last time you had a mortgage check-up?" click below to find out more!

Click Here For When was the last time you had a mortgage check-up?

Jeff Baxter - Your Mortgage Banker at the Beach

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com

Woops! My AGI is too High!

Jeff Baxter (Prosperity Mortgage) — Sat, 21 Feb 2009 15:50:47 -0600

There is a little-known provision in the American Recovery & Reinvestment Act of 2009 that authorizes a PARTIAL TAX CREDIT if a first-time home buyers income EXCEEDS the adjusted gross income (AGI) limit of $75,000 for a single person and $150,000 for a married couple.

Two important things you need to know:

1. "Income" is defined as the Adjusted Gross Income "line" on 1040, 1040A and 1040EZ. Yes, it actually says those words within the line item.

2. The "Partial Tax Credit Income Cap" is $20,000 - and by the way, that's the dollar basis for the formula we're about to share with you.

Example: Married Couple's AGI is $159,000

Subtract Maximum AGI $150,000 For Married Couple = $9,000

Divide $9,000 by $20,000 = .45

Subtract .45 from 1.00 = .55

Multiply .55 x $8000 (max credit) = $4,400

Yes, $4,400 is the tax credit this couple can get-even when their income exceed the so-called maximum income amount. Even at $19,000 over the AGI, this couple could still get a $400 tax credit! Use the exact formula for a single home buyer!

Be sure to check with a tax advisor but as a first-time home buyer, this is awesome incentive to buy a home by December 1, 2009.

Jeff Baxter - Prosperity Mortgage - Bethany & Rehoboth Beach, DE

My Website - Email: jeff.baxter@prosperitymortgage.com