Peggy Cottrell's (pcottrell) Blog

HUD Takes Action!

Peggy Cottrell (Cutler Real Estate) — Tue, 19 Jan 2010 01:33:39 -0800

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERSMeasure to help bring stability to home values and accelerate sale of vacant properties WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes. "As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization." With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties. "This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said. In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities. "FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity." The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions: All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions. "See Attached" The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Real Estate activity in Louisville, Ohio

Peggy Cottrell (Cutler Real Estate) — Thu, 08 Jan 2009 21:02:29 -0800

Activity in Louisville, Ohio Dated 07/18/09--01/18/10 There are 38 active listings in Louisville, price range as low as $46,700 - $119,900 Great opportunity for 1st time buyers...offer expires April 30th....time is running out! Call Peggy Today! 330 704-9979

Active: 82

Pending: 14

Sold: 98

Other: 48

Total: 242

	Bedrooms	Bathrooms	Square Feet	List Price	Selling Price	DOM/CDOM
Minimum	0	1.00	606	$0	$24,900	4/4
Average	3	2.23	1,682	$136,878	$115,325	101/130
Median	3	2.00	1,539	$129,888	$107,950	73/92
Maximum	6	6.00	5,586	$1,294,876	$308,000	1174/1174
Total Dollar Value					$11,301,845

Average DOM Breakdown and Average % of List Price received on Solds by Market time:

	0-30 Days	31-60 Days	61-90 Days	91-120 Days	120+ Days
No. of Listings	43	16	14	6	19
Breakdown %	43.88	16.33	14.29	6.12	19.39
Avg SP % LP	106.90	92.90	92.33	97.88	93.49

Average CDOM Breakdown and Average % of List Price received on Solds by Market time:

	0-30 Days	31-60 Days	61-90 Days	91-120 Days	120+ Days
No. of Listings	41	12	14	6	25
Breakdown %	41.84	12.24	14.29	6.12	25.51
Avg <!--G_CDOM_SPLP_Lab-->	107.63	93.19	92.33	97.48	93.65

New $8,000 1st Time Home-buyer Tax Credit The Tax credit is for first-time buyers only. The tax credit does not have to be repaid. The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8000. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. Single Taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. NAHB has the cleanest/nicest resource for this information and you can safely access it from this website at: www.federalhousingtaxcredit.com Questions & Answers on $8,000 Tax Credit! "I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund? The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid, The long answer? It depends. Here are three scenarios: Scenario1. Your final tax liability is normally $6,000 You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check. Scenario 2. Your final tax liability is $6,000 but you've overpaid by $1,000 through your payrollwithholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000 the $8,000 credit plus the $1,000 you overpaid. Scenario3. Your final tax liability is $6,000 but you've underpaid through your payroll withholding by $1,000 Normally, you would have to write the IRS a $1,000 check, This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund. Today's Tips! USDA Loans offer 100% Financing! Many rural homes can be purchased with 100% Financing virtually the only 100% financing available for buyers besides VA financing exclusively for Veterans. VA Financing! With many more people serving our country in the last 8 years, VA Financing is an excellent 100% financing opportunity for buyers to buy a home in any location! Seven reasons to own your own home in this buyer's market! Tax Breaks 1. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home. Appreciation 2. Real estate has long-term, stable growth in value. While year to year fluctuations are normal, median existing home sale prices have increased on average 6.5 percent each year from 1972 though 2005 and increased 88.5 percent over the last 10 years, according to the National Association of Realtors. The number of U.S. households are expected to rise 15 percent over the next decade, creating high demand for housing. Equity 3. Money paid for rent is money you will never see again, but mortgage payments let you build equity ownership interest in your home. Savings 4. Building equity in your home is a ready made savings plan when you are ready to sell. Predictability 5.Unlike rent, your fixed mortgage payments do not rise over the years so your housing costs actually may decline as you own the home longer. Keep in mind your property taxes and insurance will increase. Freedom 6. The home is yours so you can decorate the way you want and benefit from you own investment. Stability 7. Living in one neighborhood for many years gives you the chance to participate in community activities and establishing long relationships. That's why owning your own home is good for your wallet! 09/14/08 thru 03/13/09 Active List Price Range From $19,900 - $1294,876 In Louisville Number Of Active Listings In Louisville 104 Number Of Pending Listings In Louisville 20 Number Of Sold Listings In Louisville 67 Number Of Expired Listings In Louisville 79

My hometown! Louisville, Ohio

Peggy Cottrell (Cutler Real Estate) — Thu, 08 Jan 2009 06:36:57 -0800

My roots are here in Louisville! My family has resided in this community for four generations and I'm very proud to call Louisville my town. Louisville is a small size city offering residents big city services and small town hospitality, friendliness and pride. Known for its generosity, residents give freely of their time to volunteer for many worthwhile causes. You will find an excellent school system, beautiful parks for our children of all ages, many recreational activities, shopping, low crime rate, strong community involvement, and even an airport. Photo Tour of Louisville, Ohio