Most people list dieting as the #1 on new years resolution. I think everyone, no matter how old , how thin, or how fit would like to cut a few pounds.

Now is the time of year that you want to kick that calorie burn into high gear.

Here is a great list I found that an expert put together as  a list of various activities to give you an idea of how each affects your burn.

Sales have picked up for several reasons. Another big reason is  Lower home prices -

Lower home prices , yes, prices are going down, especially here in the west, and specifically, Phoenix, Scottsdale, Fountain Hills and other East Valley cities where we saw one of the biggest national drop. Inventories remain high.

However, lower prices are creating buying opportunities which we haven't seen in several years

Sales have picked up for several reasons. One big reason, is the easing of interest rates -

simple. Lower interest rates allow one to buy the same home with a more affordable monthly payment.

Although, credit is a little more difficult to come by. Stricter lending terms, larger down payment requirements make the likelihood of future foreclosures less and a prolonged housing recession less likely

Wow, Mortgage applications surged to the highest level in over five years!!

This has to be good news. People either want to buy. Which we need. Or they are trying to stop foreclosures by refinancing. Which we need.

According to the MBA , potential borrowers came out in droves to refinance as government interventions helped push interest rates down to record lows, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended December 19 soared 48.0 percent to 1,245.4, the highest reading since the week ended July 18, 2003, when it reached 1,284.3.

Think about it like this.

If you could go to Las Vegas, wager and win keep you profits would you? If you do not win, the house would come and give your money back in the form of a low interest loan and say ‘try again'. Now, with this new found money, you have a second chance. If this second change is successful you keep all the profits above and beyond these low interest loans. If this second change does not prove successful, you don't have to pay the money back.

This bailout of those who are not rewarded for taking risk is completely opposite to what built our economy which rewards for risk. And of course, that risk comes at a price if you don't succeed.

What makes matters worse is that if the program does not prove successful and the banks cannot right the ship, the owner of this $700 Billion in bad debt and worthless loans are the American Taxpayer. Most Americans would probably not make this investment the Government is making for us.

There was some less than positive news earlier.

The NAR reported Sales of existing homes plunged far more than expected last month as buyers recoiled from October's financial wreckage on Wall Street. The median sales price fell by the largest amount on record.

The National Association of Realtors said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.

However, there was some positive or optimistic insight into the data.

Lawrence Yun, the normally upbeat chief economist of the Realtors group,  noted that after prior stock market crashes home sales usually rebounded within a few months.

Keep your fingers crossed!!

Are we headed to 0 % or ZIRP (Zero interest rate policy?)

Not since the 1930's, (after the Great Depression) have we had ZIRP monetary policy. However, I am hearing it more and more... and it may not be that far-fetched, since we have seen rates drop 2 points about 2 months, , another 2 ¼ points over the year is not much and would get us to 0%.

What is the net effect ?? we need lower interest rates (maybe not ZIRP) to stimulate the economy,  housing and hopefully, get mortgage interest rates to move lower to stimulate the economy' .

However, its a Catch-22, as we have to be careful not to create another Real Estate Bubble with people buying more home than they can afford with these lower rates.

Here is a breakdown and purpose of some of the legislation in the package titled the Hope for Homeowners Act

• HOPE for Homeowners Act would create a new initiative within the Federal Housing Administration to refinance mortgages of distressed home owners.
• funding for foreclosure prevention counseling
• emergency appropriation $4 billion -Community Development program (CDBG) providing cities that have been most adversely affected by the foreclosure crisis desperately need some assistance to get foreclosed and abandoned properties back into the hands of qualified homeowners.
• bankruptcy provision could help more than 600,000 homeowners by allowing them to modify their mortgages in bankruptcy.
• improve disclosures to borrowers earlier in the lending process
• modernize the Federal Housing Administration (FHA).
• tax credit to buyers of homes in or near foreclosure
• seller breaks for short-sales tax treatment
• tax credits to builders to prevent bankruptcy

This 100% equity program allows people who want to buy to enter into an option agreement to purchase the property anytime within 12 months if they choose.

The buyer pays rent each month all of which gets deposited in an escrow account on their behalf; rent accumulates as equity towards a maximum (per the lease-option agreement) 5% down payment.

I have spoken with several real estate attorneys and lending institutions and they have all confirmed that if the money is deposited directly from the buyer into escrow on the buyers behalf, then it is not considered a seller contribution.

However, I always recommend full disclosure when you speak with your bank prior to entering into any purcahse agreement. Show your lender the option agreement, contract and provide full disclosure ahead of time.

I really like the program and I expect to see more and more of this type of seller cooperation with buyers to close real estate transactions in today's challenging real estate and financing market.

Great Tool for Consumers