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Mortgage Refinancing Increases but Some Qualified Borrowers Frustrated, Hopeful

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 15 Jan 2010 19:56:50 GMT

While bailout money was given to many banks in 2009 to help stimulate the economy, the stricter rules for getting housing loans are making it a tough job for the qualified, self-employed borrower. Interest rates currently remain very low and that has some looking to capitalize on them but they're being met with frustration. "The word stated-income has been blamed along with a few other things for the whole mortgage-market meltdown," says Wallace. "It is not a word that anybody at the Federal government thinks is acceptable anymore. So none of those kinds of loans come through any government entities at all," says Larry Wallace. Courtesy Realty Times

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Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 12 Jan 2010 18:57:44 GMT

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Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 12 Jan 2010 19:45:44 GMT

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Just Listed, One Owner, Immaculate Home...6231 Amarillo Drive

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 07 Jan 2010 18:49:38 GMT

Imagine Real Estate Be the first to learn about new listings from Imagine Real Estate.... Immaculate one owner custom home in casselwood terrace! pride of ownership really shows in this beautiful home. move-in ready, just bring your truck and enjoy your new home! quiet neighborhood, country-like setting. home backs up to large field. new furnace will keep you toasty this winter. huge 1/4 acre yard. a truly immaculate gem. priced to sell fast, this one won't last!. for additional info, or for a viewing of this or any other listed property contact Adam Atherton at 415-5206

Homebuyers 101... Making Sense of Real Estate Alphabet Soup

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 07 Jan 2010 18:07:33 GMT

Imagine Real Estate Homebuyers 101 This class will lead you through the process of how to buy a home, how to apply for 1st time housing grants/assistance and provide information on the $8,000 federal tax credit. Presented by Realtor and First Time Homebuyer Specialist Steve McMichael, you will learn the abc's of home buying.The USDA has 0 ...down subsidized housing programs; Speakers from the MCC (Mortgage credit certificate) will discuss how to get 25% interest back as a tax credit. A speaker from Comunity Connections will discuss available grants, and VA financing will be discussed. We will also discuss the steps to buying a foreclosed home and is a really a good deal? In addition, we will show you how to use technology to buy a home. Learn how to read a credit report and receive a free tri-merge credit report free that night. This is going to be an extremely informative seminar that could literally save you thousands of dollars. Refreshments will be served. Space is limited. Bring your significant other if you’d like but just be sure to get signed up today! Call Anna at (260)749-2212 to register. See More HomeBuyers 101 Time:6:30PM Wednesday, February 10th Location:New Haven, In-New Haven/Adams Township Parks Dept

January Market Conditions Report for Fort Wayne Area

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 15 Jan 2010 20:02:41 GMT

Happy New Year! Will 2010 be the year home sales gain traction? Looks like 2010 will be a whole like 2009, time will tell for pending sales occuring after May 1,2010 when the next round of Tax Incentives expires. (buyers must have an accepted purchase agreement by April 30,2010 and close by June 10,2010. Look for closing costs to increase, especially at escrow/title companies as new RESPA laws took effect on January 1,2010. Let's be on the positive side, make this the year you buy your dream home! From the Fort Wayne Journal Gazette: Government incentives led to increased interest in home construction in Allen County and created optimism in the housing market, real estate experts said Thursday. The 679 building permits issued in 2009 represented a 9.3 percent increase over the 621 issued in 2008, said Maurine Holle, executive director of the Fort Wayne Home Builders Association. Builders received 51 permits in December 2009, compared with just 18 permits issued in December 2008. "We're happy to be going in the right direction," she said. "Pretty much the government's first-time homebuyer effort helped and interest rates are still so low." Prospective homeowners have until the end of April to make a purchase. The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for people buying their first principal residence. The law also authorizes a tax credit of up to $6,500 for qualified repeat homebuyers. "The program made a lot of people get off the fence," Holle said, "and now that it has been extended to April" more might make a move. Meanwhile, existing home sales in the county were about the same last year as in 2008. Based on figures as of Thursday, home sales rose slightly to 4,203 from 4,199 in 2008. Fort Wayne Area Association of Realtors spokeswoman Kim Ruffin also attributes the activity to government incentives. The association continues to compile year-end totals, she said. Real estate agent Roderick Phillips said the sales uptick doesn't surprise him. But after the incentives are gone there might be a lull, he said. "The bottom line is that the people who want to buy homes are going to buy homes, even though credit has tightened up." The housing market "will come back pretty strong," said Phillips, owner of Phillips Team. pwyche@jg.net Sources: Fort Wayne Home Builders Association, Fort Wayne Area Association of Realtors ZIP Code: 46774 Approximate Location Boundaries: Allen County and Northeast Indiana Location Characteristics: New Haven was platted by Henry Burgess, and was incorporated as a town under Indiana law in 1865. It became incorporated as a city in 1963. Several homes built by the Burgess family remain in New Haven. A Burgess home on Summit Street is the oldest brick structure in Jefferson Township. Henry Burgess' son-in-law, E.W. Green built a large frame Greek Revival house on the hill above what is now Central Lutheran School. Another Burgess structure remains at the corner of Summit and Eben Streets. New Haven's history has been shaped significantly by transportation. It was located along the Wabash and Erie Canal (the Gronauer Lock of the canal was unearthed during construction of Interstate 469 in the late-1980s, and is now on display at the Indiana State Museum in Indianapolis). Later, the city was served by the Wabash and Nickel Plate Railroads. Norfolk Southern Railway maintains a significant operation in New Haven today. U.S. 24 and U.S. 30 (the historic Lincoln Highway), as well as Interstate 469 serve residents. The Fort Wayne Railroad Historical Society operates east of New Haven on Edgerton Road. The society has restored a Nickel Plate USRA Light Mikado and restored the Craigville Depot, which are housed at the New Haven site. The historic French settlement of Besancon is on the eastern edge of New Haven along the Lincoln Highway. Saint Louis Catholic Church at Besancon is now on the National Register of Historic Places. New Haven was the home of a weekly newspaper, Allen County Times, until the summer of 2002. The paper served New Haven, Leo-Cedarville, Grabill, Harlan, Woodburn, Hoagland, and Monroeville. [edit] Geography New Haven is located at 41°4'4?N 85°1'17?W / 41.06778°N 85.02139°W / 41.06778; -85.02139 (41.067648, -85.021480)[3]. According to the United States Census Bureau, the city has a total area of 8.2 square miles (21.1 km²), all of it land. New Haven was the westernmost point of prehistoric glacial Lake Maumee which was an extension of Lake Erie. The bed of Lake Maumee then became the Great Black Swamp, which covered an area between New Haven and present-day Toledo, Ohio. The route of the old Lincoln Highway east of New Haven follows the southern lakebank of glacial Lake Maumee, a notable geological feature. Demographics As of the census[1] of 2000, there were 12,406 people, 4,900 households, and 3,415 families residing in the city. The population density was 1,522.0 people per square mile (587.7/km²). There were 5,141 housing units at an average density of 630.7/sq mi (243.6/km²). The racial makeup of the city was 97.03% White, 0.67% African American, 0.33% Native American, 0.29% Asian, 0.01% Pacific Islander, 0.44% from other races, and 1.24% from two or more races. Hispanic or Latino of any race were 1.95% of the population. There were 4,900 households out of which 32.3% had children under the age of 18 living with them, 55.0% were married couples living together, 10.8% had a female householder with no husband present, and 30.3% were non-families. 25.3% of all households were made up of individuals and 8.8% had someone living alone who was 65 years of age or older. The average household size was 2.51 and the average family size was 3.01. In the city the population was spread out with 25.9% under the age of 18, 8.9% from 18 to 24, 28.8% from 25 to 44, 23.4% from 45 to 64, and 13.0% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 97.3 males. For every 100 females age 18 and over, there were 93.4 males. The median income for a household in the city was $41,802, and the median income for a family was $49,597. Males had a median income of $36,370 versus $25,280 for females. The per capita income for the city was $19,960. About 4.9% of families and 6.6% of the population were below the poverty line, including 8.7% of those under age 18 and 7.6% of those age 65 or over. [edit] Government New Haven is governed by Mayor-council government. The present Mayor is Republican Terry McDonald. Mayor McDonald was originally elected as a Democrat. Past mayors include Republican Walter Krueck, Republican Herbert Brudi, Republican Terry Werling, Democrat Eugene Taylor, and Republican Lynn Shaw. Judge Geoff Robison is the New Haven city judge. Tim Martin Councilman District 5 is serving his second term. [edit] Schools New Haven is in the East Allen County Schools District (EACS). EACS offices are headquartered in New Haven, operating a high school, a middle school, and three elementary schools within the district. New Haven is also served by one Catholic school, Saint John the Baptist Catholic School, and one Lutheran school, Central Lutheran School. [edit] Economy New Haven is surrounded by an abundance of fertile soil, making agriculture the largest visible economic asset. Corporate headquarters of Do It Best hardware stores is located in New Haven, along with Central States Grain, a large soybean and grain processor, has its operational headquarters in New Haven. O'Neal Steel, the nation's sixth largest steel center, operates a New Haven branch. Other major employers include East Allen County Schools, Norfolk Southern, and BFGoodrich (located in nearby Woodburn, Indiana).[5] [edit] Notable natives and former residents Bubbles Hargrave in 1914. [edit] Athletes * Lloy Ball, professional volleyball player, Olympic gold medalist, 2008 Summer Olympics * David Doster, former player for MLB Philadelphia Phillies * Norm Ellenberger, former head coach of the University of New Mexico Lobos and assistant coach to the NBA Chicago Bulls * Bubbles Hargrave, former player for MLB Chicago Cubs, Cincinnati Reds, and New York Yankees * Pinky Hargrave, former player for MLB Washington Senators, St. Louis Browns, Detroit Tigers, and Boston Braves [edit] Authors * Jim Leonard, Jr., playwright and television dramatist [edit] Business leaders and inventors * Don Wolf, CEO of Do It Best * Jay Brown, California attorney and former criminal defense counsel with the U.S. Navy; successfully defended hundreds of military sailors and Marines in military courts martial [edit] References 1. ^ a b "American FactFinder". United States Census Bureau. http://factfinder.census.gov. Retrieved 2008-01-31. 2. ^ "US Board on Geographic Names". United States Geological Survey. 2007-10-25. http://geonames.usgs.gov. Retrieved 2008-01-31. 3. ^ "US Gazetteer files: 2000 and 1990". United States Census Bureau. 2005-05-03. http://www.census.gov/geo/www/gazetteer/gazette.html. Retrieved 2008-01-31. 4. ^ "Monthly Averages for New Haven, IN". The Weather Channel. http://www.weather.com/outlook/recreation/golf/wxclimatology/monthly/USIN0465. Retrieved 2009-02-14. 5. ^ "Leading Employers In Allen County". Fort Wayne - Allen County Economic Development Alliance. 2008. http://www.theallianceonline.com/top_employers.aspx. Retrieved 2009-02-14. For More Information: * Visit My Web Site * View My VIDEO Newsletter * View My Newsletter * Ask Me A Question View Market Conditions of other areas served by Steve McMichael The Imagine Team Navigate: Top > Indiana > New Haven About Steve McMichael The Imagine Team: Steve McMichael has been an Indiana Real Estate agent since 1993 and a Broker since 1995. Steve founded Imagine Real Estate in 2001 with the mission of helping homedreams become homerealities. Imagine Real Estate's real home is in New Haven, the virtual home of Imagine Real Estate is FortWayneHomesOnline.com. Imagine is a full service residential brokerage where every client recieves conceigerge level service. Steve has received the designation of ePro, and recently completed requirements for the ABR designation as a Buyer's Specialist from the REBAC. He lives in New Haven with his wife Judy, and daughters Katie and Alyssa. For additional information call steve at 260.602.6606 or visit www.FortWayneHomesOnline.com These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.

Search ALL Fort Wayne Area Listings!

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 12 Jan 2010 19:01:20 GMT

We utilize MLSEarthview's state of the art real estate search for you! Search, find, categorize and save your favorite listings. With one click access to Google Earth, Google Maps and Google Streetview! Check it out, there is nothing else like it in the Fort Wayne Area!

How to Save to Buy a Home

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 07 Jan 2010 17:44:59 GMT

It can be one of the hardest things to do -- save money for your first home. But now, more than ever, there's incentive to buy. Government housing tax credits have been extended and that's sparking buyers' interest. Reports show that U.S. homes sales increased 10 percent in October to the highest level since February 2007. The tax credit, less expensive homes, and lower mortgage rates are being credited. However, while the government is helping to support the purchasing of a home, many Americans still can't afford to buy one. "Most Americans are spoiled. Most Americans spend a lot of money on discretionary items," says Eric Tyson, co-author of Home Buying for Dummies, 4th Edition. "What it really comes down to is you have to be motivated to look at where are you currently spending money and what discretionary spending can you cut off," says Tyson

What Home Sellers are not disclosing...

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 15 Jan 2010 20:59:02 GMT

Fortunately in Indiana we have a Seller's Disclosure Form! From the Wall Street Journal What Home Sellers Don't Tell Buyers As buyers ease back into the battered real-estate market, they're often hitting a stumbling block: fibbing by home sellers. Eager to unload their abodes, some sellers exaggerate the size of their lots or their houses. Others minimize their property-tax or utility bills, conveniently forget about pests, or play down flooding problems or noise. Real-estate experts say that while such misrepresentations aren't new, the tough market of the past few years has made buyers more wary, partly because they can't expect rising home prices to bail them out of costly mistakes. As a result, deals are taking longer, and more of them are falling apart as buyers find properties sometimes aren't all they're supposed to be. More than 30 states have disclosure laws requiring sellers to tell prospective buyers and agents about leaky roofs and other problems, according to the National Association of Realtors. But there's often a gray area involving the disclosure of problems the seller may not know about, such as a long-ago flood or hidden mold. States are also increasingly passing laws requiring homeowners to disclose environmental issues, such as the presence of radon gas, a contaminant linked to lung cancer, and underground fuel tanks. In California, the checklist of required disclosures is so long that a cottage industry has sprung up of firms that help sellers prepare the forms. Given the complexity of disclosure laws, it's not surprising that potential buyers don't hear about every problem in a house. Besides the issue of fibbing, sellers may genuinely not know about problems. And even if they do, the laws generally don't apply to bank-owned homes transferred in foreclosures, which now constitute a larger share of sales. Buyers need to do their own due diligence and not rely exclusively on what sellers and agents say. They should hire an independent home inspector or home-inspection engineer, one not referred by the seller—and be aware that real-estate agents typically represent the seller. Here are some of the common misrepresentations and white lies that buyers may hear as they shop for a house, according to real-estate experts and state regulators: • "This house is on two acres." Disputes about property dimensions—how many square feet in a house or condo, or its exact boundaries—are common. Sometimes buyers don't learn the exact dimensions until the lender's appraisal. Listing agents usually accept a seller's word on property dimensions, says Diane Saatchi, a senior vice president at Saunders & Associates, a real-estate firm in Bridgehampton, N.Y. "We tell everyone to verify," she says. Smaller dimensions also can cause an appraisal to come in lower than the agreed-upon purchase price. Low appraisals are a leading cause of ruined deals in today's market. A properly worded appraisal contingency in the purchase contract would allow you to scuttle the deal or find other financing if the appraisal comes in low, says New York real-estate attorney Michael Xylas. • "We don't have pests." A basic home inspection generally doesn't include a peek inside walls or underground for termites and mold, which are among the top complaints. Inspections for mold and radon gas also generally aren't included; usually buyers must order these inspections separately. Other inside-the-wall problems include faulty wiring and old plumbing, which also may require specialists. James Holtzman, a financial adviser at Legend Financial Advisors Inc. in Pittsburgh, says sellers of the 1901 house he bought in August 2006 said its electrical wiring was completely upgraded, yet an electrical inspection revealed only one of three floors had been totally upgraded. The seller then knocked $6,000 off the sales price before they went to contract so Mr. Holtzman, 35 years old, could pay for the necessary work. • "This place never floods." Even arid states such as Arizona and New Mexico have occasional flash floods, and water and drainage problems aren't always obvious. June Walbert, 52, a certified financial planner at USAA, a financial-services company, says her San Antonio house received a clean bill of health from a home inspector before she bought it six years ago. But 10 days after she moved in, the sewer backed up, flooding the house, and she had to fork over $2,800 for repairs. "It was a rude surprise," says Ms. Walbert, who adds she asked her home inspector and the seller for compensation, but didn't get it. Bill Richardson, outgoing president of the American Society of Home Inspectors, says a general home inspection wouldn't catch that unless the sewer line was visible from the basement or water backed up into sinks and tubs or toilets. • "Taxes and maintenance costs are low." Home buyers often gripe about tax and utilities bills that are higher than sellers said they were. Homeowner association and condo dues and assessments are also common complaints. Sometimes sellers simply underestimate the bills, or forget to include recent or expected increases, agents and brokers say. Taxes can also be deceptively low because of unrecorded improvements like decks and finished basements. Ask to see recent bills, and check with the tax assessor's office for up-to-date information. • "This is a quiet neighborhood." Sellers may play down distractions that could drive you crazy, such as barking dogs or idling buses. A charming park by day could be a teen hangout at night. Your best bet is to view a property at different times of the day. "I can't tell you how many times in my career buyers didn't go there in the night time, even though I told them to. You spend more time in the house at night than during the day," says Ms. Saatchi, the New York real-estate agent. Talk to neighbors and peruse the local newspapers and blogs to get a feel for a place, and check with police for crime. • "There's going to be a golf course, a pool and a party room." Builders of many developments that broke ground during the housing boom ran out of money before the project was completed. Many homeowner and condo associations also are strapped because of delinquencies and defaults. Some states require upfront disclosures about this, but you should also ask neighbors, not just sellers, about any promised facilities. Also, check titles to be sure that specific parking spaces, storage units or other facilities are included in a property sale. Printed in The Wall Street Journal, page D2 Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com

Cold Weather Chills Housing Starts

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 21 Jan 2010 13:52:10 GMT

By JUSTIN LAHART from the Wall Street Journal New-home construction fell in December, as bad weather kept construction crews from breaking ground. But an increase in newly issued building permits suggested the decline was only temporary. The number of new-home starts in December fell 4% from November to a seasonally adjusted 557,000 annual rate, the Commerce Department said Wednesday. Single-family construction declined 6.9% to 456,000. Construction of apartment buildings and other multifamily units rose 12.2% to 101,000. Last month was the coldest December in nine years in the contiguous 48 states, with several winter storms. Because home-building activity is always low during the winter months, weather can have an outsize effect on the construction figures. Housing starts fell 19% in the Northeast and 18.5% in the Midwest, both regions that were buffeted by snowstorms in December. Starts fell 0.9% in the West and rose 3.3% in the South.

Existing-home sales sank 16.7% in December 2009

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 25 Jan 2010 19:20:32 GMT

News Alert from The Wall Street Journal ---------------------------- Sponsored by NASDAQ OMX ---------------------------- Existing-home sales sank 16.7% in December to a 5.45 million annual rate, according to the National Association of Realtors. The drop, which came after three straight increases that were fed by a government tax credit, was steeper than Wall Street expected. The data also said inventories shrank, and that prices rose year over year for the first time in more than two years

Welcome from Imagine Real Estate

Steven S McMichael Realtor/ePro/ABR/Broker — Thu, 07 Jan 2010 17:30:34 GMT

FHA to Lift Mortgage Insurance Fees

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 20 Jan 2010 13:26:45 GMT

More bad news for homebuyers. The upfront mortgage insurance rate for FHA buyers will be increasing to 2.25%, all while the FHA will now cap seller paid closing costs at 3% in an effort to get homes from being underwater from the beginiing. So it is ok to raise the fully financable mortgage insurance upfront premium, but not to have sellers participate at a level higher than 3%.. this all on the heals of RESPA reform that is adding hundreds of dollars of costs to each closing.... SM From the Wall Street Journal 1/20/2010 By NICK TIMIRAOS The Federal Housing Administration will announce more-stringent lending requirements and higher borrower fees on Wednesday to cushion against rising defaults and stave off the need for a taxpayer bailout of the agency. The FHA, which has taken on a major role in the housing market during the economic downturn, doesn't lend money to home buyers, but insures lenders against default on loans that meet FHA criteria. In exchange for that backing, borrowers who take out FHA-backed loans must pay an upfront insurance premium, currently set at 1.75% of the total loan amount. The premium can be rolled into the loan. The FHA is set to raise that fee to 2.25%, the second increase in the past two years, according to people familiar with the matter. The value of the FHA's reserves to cover losses has fallen to $3.6 billion, about 0.5% of the $685 billion in loans outstanding, down from 3% a year earlier. Congress requires the agency to maintain a 2% capital-reserve ratio. If the larger upfront fee had been in place last year, the FHA would have boosted its reserves by more than $1 billion. Also to boost the reserve, the FHA will ask Congress to increase a separate insurance fee that borrowers pay annually, people said. If the agency were to run short of cash to cover projected losses, it likely would have to ask Congress for money for the first time ever. FHA officials declined to comment. The FHA, which backs as many as half of all new loans in certain housing markets, has come under fire for insuring loans with little or no money down as home prices have plunged over the past three years. With its reserves falling, the agency has been forced to walk a tightrope between protecting taxpayer dollars and helping to facilitate the housing recovery. The FHA will keep minimum down payments at the current 3.5% level for most borrowers. But the agency will require riskier borrowers with credit scores below 580 to make a minimum 10% down payment. While the FHA doesn't have a credit-score cutoff, most lenders require a minimum 620 score. Some housing analysts have pushed for higher down payments on FHA-backed loans, and a bill in Congress would raise down payments to 5%, from the current 3.5%. Instead, the FHA will reduce the amount of money that sellers can kick in for closing costs to 3% of the sale price, down from the current level of 6%. The higher cap led to abuses where sellers "heavily marked up the purchase price," says Lou Barnes, a mortgage banker in Boulder, Colo. The FHA is also set to announce a series of measures to boost its ability to oversee and take action against lenders that originate loans with FHA backing. "Mortgage lenders will find the new rules painful but necessary," says Howard Glaser, an industry consultant. He says the rules were overdue given that "an 'anything goes' environment" had prevailed in recent years as former subprime brokers migrated into FHA-backed loans. Write to Nick Timiraos at nick.timiraos@wsj.com

Fixed-Rates Down Slightly While ARMs Are Mixed

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 15 Jan 2010 19:57:54 GMT

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.06 percent with an average 0.7 point for the week ending January 14, 2010, down from last week when it averaged 5.09 percent. Last year at this time, the 30-year FRM averaged 4.96 percent. The 15-year FRM this week averaged 4.45 percent with an average 0.6 point, down from last week when it averaged 4.50 percent. A year ago at this time, the 15-year FRM averaged 4.65 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.32 percent this week, with an average 0.6 point, down from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.25 percent. The 1-year Treasury-indexed ARM averaged 4.39 percent this week with an average 0.5 point, up from last week when it averaged 4.31 percent. At this time last year, the 1-year ARM averaged 4.89 percent. "Interest rates for fixed-rate mortgages eased a little further this week, while ARM rates were mixed," said Frank Nothaft, Freddie Mac vice president and chief economist. "With fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance. For instance, over the past three-and-a-half months, on average more than 75 percent of conventional mortgage applications were for refinance transactions, according to the Mortgage Bankers Association."

Real Estate Outlook: The Numbers Are In by Kenneth R. Harney

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 12 Jan 2010 18:49:54 GMT

The drop in the latest pending home sales index got a lot of press attention, but that blip downward shouldn't be your guide on what to expect for real estate in 2010. The 16 percent decline in November pending sales from October's unusually high index was due almost entirely to buyers' behavior confronting what they thought was an expiring tax credit. In October the pending sales index went off the charts. Buyers were scrambling to sign contracts before the $8,000 credit program expired at the end of the month. In November, buyer behavior was just the opposite. When Congress extended the credit through next April 30, the pressure was off. Nobody needed to rush to sign contracts. Not surprisingly, the November index hit the skids. Meanwhile, even November's pending sales number was a solid 16 percent above November 2008. That suggests that even without the extra incentive provided by the credit, the home sale market is gaining strength for its own fundamental reasons: huge pent-up demand, low prices and great financing. But keep this in mind: Those fundamentals are dynamic - and buyers and sellers need to stay on top of them as they change in the weeks ahead. For example, as we've noted before here at Realty Times, with the economy climbing slowly out of recession, and the Federal Reserve expected to throttle back on its mortgage securities purchases , interest rates are now trending upwards. Last week's thirty year average fixed rate for new mortgages hit 5.2 percent, according to the Mortgage Bankers Association. That's still very low by historical standards, but it's up nearly a quarter of a percentage point just since mid December. Fifteen year fixed rates averaged 4.6 percent -- a rise of one third of a point in the past few weeks. Home prices are also beginning to trend upward in key markets, according to the latest Case-Shiller home price index. In San Francisco and Minneapolis, the index is up by about 15 percent since the low point earlier in 2009, according to an analysis by Bespoke Investment Group. The same analysis found the Case-Shiller index up 8.3 percent from last year's low point to the latest month in metropolitan Washington DC, 7.6 percent in San Diego, 7.2 percent in Denver, 6.9 percent in Chicago and Phoenix, 6.8 percent in Dallas and 6.1 percent in Boston. With reports of fewer layoffs plus significant new gains in manufacturing outplut and retail sales don't be surprised to see prices-and mortgage rates -- continue to rise in the months ahead. Copyright © 2010 Realty Times. All Rights Reserved. Used with Permission

About Imagine Real Estate

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 12 Jan 2010 19:54:45 GMT

At Imagine Real Estate we believe that an educated and informed buyer is paramount to the real estate transaction. We offer information on all types of financing, including FHA, VA, USDA and Conventional. We also are First Time Homebuyer Specialists and can help you naviagte thru Grants, Downpayment Assistance and Tax Credits.

Homebuilders see 2010 Recovery...

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 20 Jan 2010 16:02:18 GMT

By JAMES R. HAGERTY And DAWN WOTAPKA LAS VEGAS—Housing construction is expected to rebound this year from the severely depressed 2009 level, but the market remains fragile as foreclosures continue to rise. Builders are likely to start construction on 610,000 single-family homes this year, up 38% from last year, according to David Crowe, chief economist for the National Association of Home Builders, which is meeting this week for its annual convention. That forecast assumes that the total number of U.S. jobs will start growing again in the second quarter. Housing starts would remain far below the 2005 peak of 1.7 million. Mr. Crowe cautioned that the housing market remains tenuous, partly because foreclosures are still increasing, job growth this year is likely to be tepid, and builders are having trouble getting credit. The convention drew more than 50,000 builders, suppliers and other participants, down from more than 60,000 last year and 140,000 in 2007, a spokeswoman for the home builders said. Many suppliers were touting energy-efficient products rather than glitzy décor. "The builders here are the survivors," Mr. Crowe said. Less than three miles from the convention, around 60 people perched on folding chairs in a parking lot to bid on foreclosed homes, a daily feature of the Las Vegas market. About 60% of Las Vegas home sales in December were foreclosed properties, according to the Greater Las Vegas Association of Realtors.

FHA Sets Tighter Lending Requirements

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 21 Jan 2010 13:58:27 GMT

Steve McMichael's Notes and Analysis: This is another blow to the housing recovery. It seems insane to me for the feds to one on hand raise the fully financable upfront mortgage insurance premium while further limiting seller concessions. This is all done in the same month that new consumer protection has added hundreds of dollars in costs to the average closing. How this affects you.... as a buyer this limits the amount a seller can help you, plus you will be most likely financing in another .75% into your 30 year mortage... $750 on $100,000 accrued over time will add up to nearly $2000. as a seller this further limits your ability to assist the seller in purchasing your home. Read the whole story at WSJ.com By NICK TIMIRAOS The Federal Housing Administration is implementing more-stringent lending requirements and higher borrower fees to cushion against rising defaults and stave off the need for a taxpayer bailout of the agency. The FHA said Wednesday it will raise insurance fees that borrowers must pay, and it will cap the amount of cash that sellers can contribute for closing costs. It will also require higher down payments for the borrowers with poor credit scores, below 580. "These changes are overdue," said David Stevens, the FHA commissioner, speaking to reporters. "FHA has a responsibility to be fiscally sound" and to provide homeowners with "financing that's going to give them the ability to live in their home long term." The FHA, which backs as many as half of all new loans in certain housing markets, has come under fire for insuring home buyers who have put little or no money down as prices have plunged over the past three years. With its reserves falling sharply, the agency has been forced to walk a tightrope between protecting taxpayer dollars and helping to facilitate the housing recovery. Starting this summer, borrowers with credit scores below 580 will be required to make a minimum 10% down. While the FHA doesn't have a credit-score cutoff, most lenders require a minimum 620 score. Fewer than 1% of FHA borrowers last year had credit scores below 580, according to LPS Applied Analytics. The FHA opted not to raise minimum down payments for most borrowers, which are set at 3.5%. Some analysts had pushed for higher down payments and one bill in Congress would raise down payments to 5%.

Fort Wayne foreclosure, delinquency rates stay below Indiana,

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 26 Jan 2010 01:08:36 GMT

Mortgage foreclosure rates in Fort Wayne increased in November over the same month in 2008, but remain below state and national rates. According to recent data from First American CoreLogic, the rate of foreclosures among outstanding mortgage loans was 2.09 percent for November 2009, up from 2 percent in November 2008. Indiana’s rate in November 2009 was 2.42 percent, and the nation’s was 3.09 percent. The percentage of Fort Wayne mortgage loans 90 days or more delinquent also was up, from 4.82 percent in November 2008 to 6.49 percent in November 2009, an increase of 1.67 percentage points. Indiana’s delinquency rate for November 2009 was up 2.09 percentage points, to 7.42 percent; and the national rate was up 3.28 percentage points, to 8.14 percent. From Fort Wayne Business Journal

WSJ NEWS ALERT: Sales of New Homes Unexpectedly Fell 7.6% in December

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 27 Jan 2010 22:20:38 GMT

Demand for new homes unexpectedly fell in December, with sales dropping 7.6% from the previous month to a seasonally adjusted annual rate of 342,000, the Commerce Department said. Prices and inventories fell. Economists surveyed by Dow Jones Newswires had estimated sales would climb 2.8%. Aside from unemployment, new-home sales are suffering because of strong demand for used homes and the looming expiration of a big tax credit. Steve McMichael's Analysis: Big surprise, really? With the 2009 Tax Credit set to have expired November 30,2009 many buyers bought "early" and created somewhat of another bubble.

Homebuyer Tax Credit Boosts Economy By Broderick Perkins January 28, 2010 Courtesy Realty Times A new survey reveals that savvy consumers cashing in on the new and improved homebuyer tax credit are helping fuel economic recovery. The vast majority of current homeowners say they would spend the expanded version of the homebuyer tax credit on repaying existing debts, home improvements, savings and investments and household expenses, according to a Coldwell Banker survey of 1,000 homeowners. Paying off debts affords consumers more spending power, home improvements likewise put more equity money in their pockets and savings and investments generate income. Consumer spending, of course, is the real fuel for the nation's economic engine. And much consumer spending is fueled by the housing market -- provided the housing market is energized. Helping to energize the housing market and the economy is the idea behind the homebuyer tax credit and it's recent extension and expansion.

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 28 Jan 2010 11:36:53 GMT

Steve's Analysis: The credit is helping home sales would be totallly abismal without this incentive.... A new survey reveals that savvy consumers cashing in on the new and improved homebuyer tax credit are helping fuel economic recovery. The vast majority of current homeowners say they would spend the expanded version of the homebuyer tax credit on repaying existing debts, home improvements, savings and investments and household expenses, according to a Coldwell Banker survey of 1,000 homeowners. Paying off debts affords consumers more spending power, home improvements likewise put more equity money in their pockets and savings and investments generate income. Consumer spending, of course, is the real fuel for the nation's economic engine. And much consumer spending is fueled by the housing market -- provided the housing market is energized. Helping to energize the housing market and the economy is the idea behind the homebuyer tax credit and it's recent extension and expansion. Read the rest of the story at http://46774homes.com/Daily_News/daily_news.html

How are buyers spending their Stimulus

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 28 Jan 2010 11:38:14 GMT

Among those surveyed, 83 percent said if they purchased a home and qualified for the tax credit they would engage in "smart spending" on things that could ultimately increase income available for spending. Only 6 percent said they would squander the money on luxury items such as vacation or shopping spree. According to the survey most consumers would spend their tax credit: • To pay off debts (34 percent). Paying off debts leaves more money to spend or save and invest for returns that again generate spending money. • To make home improvements and potentially increase the value of their home and home equity (29 percent). Home equity, can be a way to consolidate other, more expensive debt or spend further on capital improvements that generate more returns on the money. • To put into savings and investments (28 percent). Saving and investing for returns is a much better personal financial approach than using credit for purchases. Courtesy 46774Homes. com and Realty Times, Used with Permission

Home Sizes Fall as Builders, Buyers Embrace Economic Reality

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 28 Jan 2010 12:50:20 GMT

RISMEDIA, January 28, 2010—(MCT)—New-home buyers responded to the tough times in 2009 by opting for smaller houses, driving down the average size of a house built in the United States for the first time in 27 years. Data recently released by the National Association of Home Builders (NAHB) found the average size of a new home that was completed in 2009 fell to 2,480 square feet from 2,520 square feet in 2008....

Sell Faster When You Understand The Buyers Mindset

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 01 Feb 2010 12:52:19 GMT

When most sellers list their home for sale the first thing they think about is how much will I get and that is usually followed by how soon will I get the money. It's certainly understandable that those two concerns are, most often, top of mind. After all, you're likely selling your home to buy another one or invest the money in something else. But, if as a seller, you can get into the buyer's mindset, the sale of your home can come faster and for more money.

Exterior Remodeling Proves Best Bang for Your Buck

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 01 Feb 2010 12:54:14 GMT

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors who completed a recent survey. On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement siding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs. "Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. "With exterior projects returning a high percent of project costs upon resale, Realtors can help give your home curb appeal while adding value to the real estate transaction." Read More....

Seventy Percent of Americans Think It’s Harder to Get Rich Now Than It Used to be

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 01 Feb 2010 12:57:55 GMT

RISMEDIA, February 1, 2010—A new study released by Bankrate, Inc. shows that the majority of Americans think wealth is beyond their reach and that it won’t be easier to get rich any time soon. The poll, conducted by Princeton Survey Research Associates International, is included in the new Bankrate Financial Literacy series on How to Prosper. Among the findings: -70% of Americans believe that it is more difficult to get rich today than it was in the past; -More than half of those surveyed believe it will be even more difficult to get rich in America in the next ten years while 24% think it will be about as difficult as it is now; -When asked about the likelihood of getting rich personally, one-third of Americans say ‘it’s very likely’ or ‘somewhat likely’ they will attain wealth. But 63% say it’s ‘not too likely’ or ‘not at all likely’ they’ll get rich; -Only 21% of Americans see traditional investment as a feasible route to wealth, with 12% who believe investing well in stocks and bonds will provide them with financial freedom and 9% who think that investing in real estate is the best way to get rich; -Family is the primary motivator for Americans to strive for prosperity as 41% of respondents said their reason for wanting wealth is to provide a better life and future for their children and 18% said they’d like to be rich to take care of their parents and other family members; -Equal numbers of Americans see “job loss or income reduction” or “too many bills and not enough income” as the main obstacles to achieving wealth, with each choice being selected by 27% of respondents. The Credit CARD Act may be a bit too late as 11% blamed credit card debt for wealth seeming out of reach; -In spite of the respondents’ concerns about accumulating wealth, only 52% of those polled say that they save consistently; -It’s not all bleak news, however: 95% of Americans say they are taking one or more steps to secure their financial future, with 75% saying they have cut back on purchases to save more and 78% saying they are avoiding buying “luxury goods or unnecessary items.” “Many Americans aren’t necessarily buying into the country’s long-held belief that anyone with a dream can strike it rich,” said Julie Bandy, editor in chief at Bankrate.com. “However, by recognizing that a windfall isn’t around the corner for most of us, consumers can begin taking real, actionable steps towards making a brighter financial future. If you can do things like save consistently and pay down the principal on a mortgage, financial comfort may not be as far away as it seems.” For more information, visit www.bankrate.com [2].

The week ahead February 1-6,2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 01 Feb 2010 12:59:20 GMT

This week is extremely busy in terms of economic data scheduled for release and will likely be another active week for mortgage rates. There are five economic releases scheduled for the week in addition to several speaking events for Fed and Cabinet members that may also influence the markets and mortgage rates. Four of these reports are considered to be of moderate or high importance, meaning we should see quite a bit of movement in mortgage rates this week. The first report of the week is January's Personal Income and Outlays data tomorrow morning, which gives us an indication of consumer ability to spend and current spending habits. Current forecasts call for an increase in income of 0.3% while spending is expected to rise 0.3%. Larger increases would be good news for the stock markets and could hurt bond prices, driving mortgage rates higher tomorrow. Smaller than expected increases would be considered good news for mortgage rates. Also schedule d for release tomorrow morning is the Institute of Supply Management's (ISM) manufacturing index. This index tracks manufacturer sentiment by rating surveyed trade executives' opinions of business conditions. It is usually the first economic data released each month and is one of this week's very important reports. Current forecasts are calling for a reading in the neighborhood of 55.2 that would be a decline from December's reading. The lower the reading, the better the news for the bond market and mortgage rates.

FHA's Tighter Guidelines By David Fletcher February 4, 2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:03:39 GMT

The FHA announced tighter guidelines (January 20). Insurance premiums increased from 1.75 to 2.25 percent. Seller concessions are limited to 3 percent, down from 6 percent and new borrowers with a FICO score below 580 will need a 10 percent down payment instead of the 3.5 percent now required. GASP! We have a choice. We can choose to support what they are trying to do, or we can complain loudly and keep the buying public confused. Full Story:

Feds Giving Mortgage Modifications Additional Boost

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:04:48 GMT

It's not easy turning a potential foreclosure into a successful affordable mortgage modification -- from either side of the table. Homeowners, facing confusing documentation requirements and conflicting advice from both honest and dishonest corners, become intimidated and drag their heels or bury their heads. Lenders, grappling with voluntary provisions in ever-evolving regulatory adjustments, skilled worker shortages and disoriented homeowners, not surprisingly develop an edge of ambivalence. To help clear some of the sludge out of the Obama Administration's Home Affordable Modification Program (HAMP) the U.S. Treasury Department and Department of Housing and Urban Development (HUD) recently announced plans to speed up trial mortgage modification conversions to help homeowners obtain a permanent mortgage modification. A more recent addition to the plan also calls for ban on mortgage lenders canceling trial modifications that are due to expire before Jan. 31, 2010, giving homeowners more time to convert.

FHA Flipping Rules Changed...

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:10:45 GMT

Steve's Analysis... the rule requiring home "flippers' to own a home for 91 days or longer before the home is sold to a new buyer using FHA financing was never a great idea. So long as the property appraises accordingly, and the property meets the FHA MPS (minimum property standards) who cares how the buyer is financing. The delays in closing while waiting for the 91st day (the home could not close on the 91st day, but a purchase agreement could be signed then) ended up costing the investor/flipper additional holding charges which ended up costing the buyer more money. Of course buyers still need to be aware of the substandard "repairs" some, but not all flippers complete. Foreclosure and REO investors have begun taking a closer look at the Obama administration's recent loosening of rules on property "flips"… . And they're seeing some potential complications. The policy change allows investors to resell houses they've acquired and rehabbed in less than 90 days to buyers using low-downpayment FHA mortgage financing. Most investors interviewed by Realty Times last week welcomed the loosening of the rules, but said there are snares for the unwary. For example, the program sets a 20 percent cap on the difference between an investor's acquisition cost of a foreclosure and the price paid by the new buyer. Price gains in excess of 20 percent must be justified with extensive documentation of the improvements made and their impact on the property's valuation. Bobby Taylor, a broker with Coldwell Banker Mountain West Real Estate in Salem, Oregon, says the 20 percent standard limit is reasonable, but could prove troublesome for investors who overspend on fix ups or pay too much up front.

Foreclosures Take Heavy Toll on Hearts and Minds By Danielle E. Gaines and Deborah Schoch

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:15:38 GMT

Steve's Analysis: The pain of the foreclosure for all involved is far from over... this is again an important reminder that if you find yourself in financial difficulty get help. In Indiana contact the Indiana Foreclosure Prevention Network at 1-800-get hope. RISMEDIA, February 4, 2010—(MCT)—Ethelda Lopez, a retired telephone company worker recently watched as her dream retirement home was auctioned off on the lawn outside a county courthouse in downtown Merced, California. “When I heard my address, it was so disheartening,” she said. “It’s amazing how it all works.” For six months, she had made hundreds of calls to her mortgage company, federal officials, local political leaders—begging them all for lower payments or more time. No one paid heed. Wracked with depression and anxiety, she was too ashamed to tell her friends that she was losing her sprawling stucco-and-stone ranch home in the Atwater countryside. Merced County ranked first in California for foreclosure filings in 2009, and sixth among counties nationwide, the national firm RealtyTrac reported recently. One in seven homes in this county of 250,000 people has been foreclosed on since September 2006, according to Foreclosure Radar, a California reporting service. Over and over, residents caught up in the foreclosure crisis—homeowners, renters, even Realtors—report that they are suffering from stress or depression and are sometimes too ashamed to reach out for help. This is the hidden human fallout of foreclosure.

Even in Tough Times, 77 Percent of Americans View Homeownership as a Part of Their Own Personal American Dream

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:17:47 GMT

Steve's Analysis: The American dream of homeownership is alive and well, despite the lowest percentage of homeownership in the last decade. For many the latest "slowdown" has made the American Dream even more affordable. The buying power in places like Fort Wayne and New Haven Indiana is very favorable for buyers.... RISMEDIA, February 4, 2010—A national survey recently released by real estate leader Trulia shows that many Americans feel that President Barack Obama has not lived up to the hope he created during his campaign and his first 30 days in office. In Trulia’s latest American Dream survey conducted online on its behalf by Harris Interactive from January 19-21, 2009, President Barack Obama scored considerably lower marks on the topic of restoring the American dream of homeownership compared to a survey conducted February 20-24, 2009 after his first 30 days in office. The current survey found that 37% of Americans gave President Obama a grade of “D” or “F” on the decisions he’s made towards restoring the American dream of homeownership compared to only 22% in the February 2009 survey. Additionally, 54% gave him a grade of “A” or “B” in February 2009 compared to only 37% in January 2010. Despite these lower grades, and the troubles that have continued to plague the U.S. housing market, the survey found that the “American Dream” of homeownership continues to be alive and well with more than three out of four Americans considering owning a home as a part of achieving their personal American dream.

The Expanded Home Buyer Tax Credit Could Chase Away the Winter Blues

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:22:42 GMT

As we begin 2010, both real estate professionals and home buyers have something to look forward to and more importantly, take advantage of—the extended and expanded home buyer tax credit. Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit. To help everyone better understand the extended and expanded home buyer tax credit, here are some highlights of the changes. Who can claim the credit? “First-time home buyers” who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. For current homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years; they must have been in the same home for five consecutive years. Another key point is that the existing home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at “move up” buyers. How much is the credit and what are the income limits? The maximum allowable credit for first-time home buyers is $8,000 or 10% of the sales price, whichever is less. For current homeowners, it is $6,500 or 10% of the sale price, whichever is less. Under the extended home buyer tax credit, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum credit. The credit decreases for single buyers who earn between $125,000 and $145,000 and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit deceases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income – over $145,000 for singles and over $245,000 for couples – are not eligible for the credit. What are the deadlines for qualifying for the credit? Under the extended home buyer tax credit, as long as a written binding contract to purchase a home is in effect on April 30, 2010, and the deal is closed by July 1, 2010, one can claim the credit. Will the tax credit need to be repaid? No, the buyer does not need to repay the tax credit if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale. Another provision of the law waives the recapture provisions for service members who receive orders that require them to move. Are there any other critical provisions? -There are three provisions people should be aware of: -There is an $800,000 limitation on the cost of the home -The purchaser must be at least 18 years old on the date of purchase -For a married couple, only one spouse must meet this age requirement and dependents are not eligible to claim the credit Finally, as an anti-fraud measure, purchasers must attach documentation of purchase to his/her tax return claiming the credit. Normally this would be a copy of the HUD-1, but could include other documents memorializing the settlement. As with all tax matters, responsibility for complying with the tax code belongs to the taxpayer. Real estate professionals should recommend that their buyers consult their tax professionals to ensure eligibility for the credit and the proper way to claim the credit. For more information, including the required IRS forms, please contact the Internal Revenue Service at 800-829-1040. Ken Trepeta is the Director, Real Estate Services for the National Association of REALTORS® Real Estate Services program

Important Indiana Housing Information. MCC not restricted to First Time Home Buyers in Allen County

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:27:27 GMT

Steve's Analysis: with the federal tax credit and MCC possibliity for second time homeowners...why wait? This is really big news and a great opportunity to help you move up to your dream home... Did you know that Allen County Indiana has been declared a disaster area and as a result the 1st time homebuyer requirement for Indiana Housing has been lifted until 04-11-2011. As long as a buyer qualifies for the program it does NOT matter that they have owned a home in the past 3 years. Here are some details on the programs: MRB = Mortgage Revenue Bond which allows a borrower to receive upto 6% of the purchase price of the property to be used toward downpayment, closing cost and prepaids. - 1% origination fee to the lender -.125% reservation fee to Indiana Housing - rate is 5.375% and reduced to 5.25% if Homeownership Training is completed through the IHCDA website - 1st time homebuyer requirement for Allen County has been lifted until 04-22-2011 - income limits - 1 person = $35,450 - 2 person = $40,500 - 3 person = 45,600 - 4 person = $50,650 - 5 person = $54,700 - 6 person = $58,750 - 7 person = $62,800 - 8 person = $66,850 MCC = Mortgage Credit Certificate - .50% reservation fee to Indiana Housing - 1st time homebuyer requirement for Allen County has been lifted until 04-22-2011 - Income limits - 1 to 2 person = $75,960 - 3+ person = $88,620

Indiana First Home and First Home Plus rates reduced!

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:29:13 GMT

The mortgage revenue bond rate for IHCDA First home and First Home Plus has been lowered to 4.95%!!!!

Paperwork Eased in Loan-Modification Program from The Wall Street Journal

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 13:34:16 GMT

Steve's Analysis..... much needed changes to simplify the process of loan modifications, and addresses the lenders repeated "loss" of required documents as an excuse to not help homeowners in need.....................................................................................................................The Obama administration is trying to simplify the paperwork for people seeking lower home-mortgage payments in an effort to avert more foreclosures. The Treasury outlined new guidelines Thursday aimed at streamlining requirements for mortgage relief under the administration's Home Affordable Modification Program launched a year ago. The guidelines specify that borrowers must provide three items to loan servicers, the companies that collect mortgage payments: a form requesting a loan modification, authorization for the servicer to seek tax information from the Internal Revenue Service and evidence of income, such as two recent pay stubs. Previously, some servicers have asked borrowers to fax in copies of their tax returns. Borrowers sometimes couldn't find the needed tax forms or complained that servicers repeatedly lost material faxed to them. The previous documentation requirements were "somewhat overwhelming" for some borrowers, says Morgan McCarty, head of mortgage servicing at Regions Financial Corp., a banking company based in Birmingham, Ala. The Treasury also said that, effective June 1, servicers must collect the information before starting borrowers on three-month "trial" loan modifications, during which borrowers must show they can make the payments before being granted a permanent reduction in their loan costs. Many servicers have been starting trial modifications based on unverified information provided orally by the borrower, only to find later that the borrower wouldn't or couldn't provide documentation. As of Dec. 31, about 900,000 borrowers had been given trial modifications but only 66,465 had been converted to a permanent fix. That largely reflects problems getting documentation. The Treasury acknowledged that some of those 900,000 borrowers won't end up qualifying for a loan modification through the program.

GO COLTS!

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 04 Feb 2010 14:32:54 GMT

Tom Brady, after living a full life, died and went to heaven. When he got to heaven, God was showing him around. They came to a modest little house with a faded Patriots flag in the window. "This house is yours for etermity, Tom," said God. "This is very special; not everyone gets a house up her." Tom felt special, indeed, and walked up to his house. On his way up to the porch, he noticed another house just around the corner. It was a 3-story mansion with a blue and white sidewalk, a 50-foot tall flagpole with an enormous Colts logo flag, and in every window, a blue and white Colts towel. Tom Brady looked at God and said, "God, I'm not trying to be ungrateful, but I have a question. I was an all-pro QB, I hold many NFL records, and I even went to the "Hall of Fame." God said, "So what's your point, Tom?" "Well, why does Peyton Manning get a better house then me?" God chuckled, and said, "Tom, that's not Peyton's house, it's mine."

United States Real Estate Confidence Index Drops 2.54 Percent in January 2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 05 Feb 2010 14:31:18 GMT

Steve's Analysis... Real Estate Professionals are pesimistic about 2010, but 2012 and beyond look great. We are at, or nearing the bottom of the real estate market. ISMEDIA, February 5, 2010—Forward looking confidence amongst real estate brokers and agents in the United States dropped marginally in January 2010, pushing the national Real Estate Confidence Index (RECI) down to 5.76 on the scale of one to ten (1 “bad” – 10 “good”), or 2.54% lower versus the December 2009 reading of 5.91, Point2 Technologies recently announced. The national RECI, which tracks the forward looking market sentiment of licensed real estate professionals in every U.S. state, dropped for the second month in a row after a record jump of 7.87% in November 2009 when the Index hit a record high of 6.03. All three components that make up the RECI declined in January, versus December 2009. The Long Term (12–18 months) optimism/pessimism variable slipped by 3.09% to 6.59 on the one to ten scale. Factoring in the decline, the majority of RECI survey respondents (69.4%) remained conservatively optimistic for the long term, rating the component in positive territory, above the 5.0 median. In addition, 18.9% of the respondents gave the 12–18 month outlook component a rating of seven, 17.5% gave it a score of 8, and 9.9% gave it a score of 9 out of 10. 10.3% of the respondents were extremely optimistic and gave the variable the top rating, a 10.

ernanke Outlines Fed's Plan to Tighten Credit

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 10 Feb 2010 15:36:04 GMT

Steve's Analysis: An already tight market with ever increasing credit requirements, increased down payments and higher fees has just gotten tighter.... U.S. Federal Reserve Chairman Ben Bernanke outlined how the central bank may tighten credit once the economic recovery has taken root. In prepared testimony, Bernanke said the interest rate paid to banks on excess reserves held at the Fed may for a time replace the federal-funds rate as the main policy target. Raising the excess-reserves rate, which currently sits at 0.25%, would give banks an incentive to park more funds at the Fed instead of lending to companies or households. That could help restrain an overheating economy and reduce the risk of inflation.

Foreclosure Notices Rise in January r

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 12 Feb 2010 14:04:53 GMT

Foreclosure notices increased by 15 percent in January. A sure sign that we are not out of this mess yet. According to RealtyTrac more than 3150000 Americans received foreclosure notices in January 2010.

Loan Modification Program Isn't On Track Yet

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 16 Feb 2010 14:08:31 GMT

Loan Modification Program Isn't On Track Yet By Bob Hunt February 16, 2010 It would be unfair to say that the Obama administration hasn’t been trying to restore the health of the housing market. Unfortunately, it would be inaccurate to say that its programs are having much success. The loan modification program is a worrisome case in point. On February 18, 2009 the Treasury Department announced the Homeowner Affordability and Stability Plan. The Loan Modification portion of that program had a goal "to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures." August 4, 2009 the administration released its first monthly Servicer Performance Report which claimed that the program was "on pace." It noted that by July more than 230,000 trial modifications had begun. By November, however, the administration announced a campaign to pressure mortgage companies because, said assistant Treasury Secretary, Michael Barr, "The banks are not doing a good enough job." Recently, a detailed report of the program’s progress was made available on the website . The report showed results through December, 2009. As of December, 66,465 permanent loan modifications had been granted. Another 46,000 had been approved but had not yet been accepted by the borrowers. Now, in many ways those are nice numbers; and many of us – not all, I know – would be happy for the borrowers. But, in the context of the entire situation, those numbers are rather paltry. Taken together they represent only 3% of the estimated eligible mortgages, and only 12% of the modification programs that have been started. More than ½ million trial modifications had been started by August; yet, by December almost 800,000 were still in the trial stage. The slow pace and the low ratio of trial modifications becoming permanent modifications does not bode well for the administration to meet its goal of keeping 3 - 4 million borrowers in their homes over the next three years.

Springtime Curb Appea

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 16 Feb 2010 14:10:10 GMT

Springtime Curb Appeal By Carla L. Davis February 15, 2010 Springtime can present many difficulties when it comes to curb appeal. For many areas of the country, this time of year means brown lawns, leafless bushes and trees, and a depressing lack of color. Yes, we have the hope of the color splashes and lush landscapes that go hand in hand with summer, but what can be done now? Improving curb appeal has shown to increase not only your property's value, but also the property values of your entire neighborhood. Whether you are selling or staying put, here are five tips that can help you on your way to a beautiful home. 1. Sidewalks and Driveways: This may be the first part of your property that your guests or prospective buyers step foot on. Literally. An affordable, virtually maintenance free option for sprucing up your paths is concrete stain. It can cost around $30 a gallon and requires very little prep work. This is a do-it-yourself project. Consider picking a color that is in the same color family as that of your home. A blue home could be happily complemented by a gray drive. Another tip: Fix cracks and uneven sections. This project may require a bit more professional attention, but will give buyers the impression that your entire home, not just the entrace, has been maintained. 2. Accent Door: It has been called the lipstick on the lady. It's inviting and it draws visitors – or buyers – in to your home. A plain door tends to recede into the background. Consider a contrasting color to the siding of your home. On the color wheel, green is opposite red and yellow is opposite blue. Don't be afraid to be daring (think a fushcia door on a cream colored home). Just a pint of paint can cover most doors, and if you don't like the result – you can try another color!

Allen County Building Permits Increase in Jan 2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 17 Feb 2010 13:27:44 GMT

30 Building permits were issued in Allen County in Jan 2010, double the ultra depressed January 2009 Allen County numbers of 15. The median sales price is down. Steve's Analysis: a large share of the recent building in Allen County is due to the American Recovery Act's provision for funding the USDA RHS program. The program offers subsidized payments to moderate income earners. If you would like additional information on the USDA program call me at 748-3300

Mortgage Delinquencies Rise Again

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 17 Feb 2010 13:30:51 GMT

There appears to be no end in sight for homeowners pain. 4th quarter 2009 delinquncies set another record.

WSJ NEWS ALERT: Obama to Unveil Additional Homeowner Aid

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Fri, 19 Feb 2010 13:01:47 GMT

President Obama will announce plans to provide an additional $1.5 billion to a state-assistance program for homeowners worst-hit by the downturn in U.S. housing values. The program, which Obama will announce in Las Vegas, is for states where the average home value for all homeowners in the state has dropped more than 20% from its value at the height of the housing bubble. About a half-dozen states qualify, including Nevada, Florida, California and Michigan.

Fewer skipping mortgage payments

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Sat, 20 Feb 2010 14:22:05 GMT

RealtyTrac Inc. monitors default notices, auction sale notices and bank repossessions. It reports Indiana has 4,622 foreclosures through January. The average home sale price was $132,141. The Irvine, Calif., company said Allen County had 294 foreclosures in January, 272 of those in Fort Wayne.

Foreclosure Rate Slows Down a Bit

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 11 Mar 2010 20:47:06 GMT

Foreclosure rate slows in February Staff, news services Advertisement The foreclosure crisis isn’t over, but the pace of growth might finally be slowing. RealtyTrac Inc. said Thursday that the number of U.S. households facing foreclosure in February grew 6 percent from the year-ago level, the smallest annual increase in four years. More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the Irvine, Calif.-based foreclosure listings company reported. That was down more than 2 percent from January Still, fears remain about the hundreds of thousands of homeowners who are still being evaluated for help under loan-modification programs. Many analysts say most of those borrowers will eventually lose their homes, sparking a new round of foreclosures later this year. Banks repossessed nearly 79,000 homes last month, down 10 percent from January but still up 6 percent from February 2009.

Daily Rate Lock Recommendation - 03/11/2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 11 Mar 2010 20:52:11 GMT

Thursday's bond market has opened relatively flat with no highly important economic news being posted. The stock markets have opened with minor losses. The Dow is currently down 21 points while the Nasdaq has slipped 2 points. The bond market is nearly unchanged from yesterday's close, but we will likely still see a slight improvement in this morning's rates due to strength late yesterday. There were two pieces of economic news posted this morning, but both are considered low importance. January's Goods and Services Trade Balance reported a $37.3 billion trade deficit in January. This was much lower than expected however, the data is not important enough to directly affect bonds or mortgage rates. It does influence the value of the dollar versus other currencies, which in turn makes U.S. debt more or less attractive to foreign investors as the value of the dollar fluctuates. But it appears this morning's data has not influenced mortgage rates.

Tighter Requirements for FHA Loans Loom

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 11 Mar 2010 20:56:17 GMT

Tighter Requirements for FHA Loans Loom By Broderick Perkins March 11, 2010 It's about to get tougher to qualify for a Federal Housing Administration (FHA) mortgage, often considered the replacement loan for the collapsed subprime market. Moving to head off the financial impact of defaulting borrowers, the FHA is adding more-stringent lending requirements and higher fees borrowers must pay to get the federally-insured loans. The announcement comes on the heels of an investigation into 15 FHA lenders with high incidences of FHA mortgage insurance claims. The same companies have reached out for government assistance -- money from taxpayers. Mortgage insurance is paid by borrowers, typically when the down payment is lower than 20 percent. Borrowers pay, but the coverage protects lenders with cash benefits should the borrower default. When lenders foreclose against homeowners with the coverage, it triggers mortgage insurance benefits for lenders to help pay off the mortgage. Rick Sharga Vice President of ReatyTrac says foreclosures were up 21 percent from a year ago and 120 percent from two years ago and it could get worse. The FHA is more exposed to defaults than ever. By some estimates, as much as 50 percent of all purchase loans in some areas are FHA insured. Before the housing collapse, FHA wrote only 3 percent of all home loans. After notice and comment periods, but beginning this spring, the FHA will raise mortgage insurance fees that borrowers must pay, cap the amount of cash that sellers can contribute for closing costs and require higher down payments for the borrowers with poor credit scores. • The new upfront mortgage premium will cost borrowers 2.25 percent of the loan amount, up from the current 1.75 percent and the second increase in the past two years. The upfront premium can be rolled into the loan. Later, some of the cost increase could be added to a borrower's additional annual mortgage insurance premium which is paid monthly.

The House Hunter's Toolkit

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Thu, 11 Mar 2010 20:58:23 GMT

The House Hunter's Toolkit By Drew Johnson March 9, 2010 It may not feel like Spring in your town, but for most of the United States, we've turned a corner. The sun is shining, the snow is melting, and the crocuses are poking their heads up through the ground; a brutal winter is winding down. Beside your tulips, the incipient balmy weather is likely to bring another species out of hibernation—househunticus americanus, commonly known as the North American house hunter. These intrepid souls, no longer trapped indoors by snow banks and freezing rain, will soon begin venturing out in search of new lodging. And like all explorers, North American house hunters must be properly outfitted for their searches. First and foremost, you house hunters need a means to plan their search. Finding a Realtor you like is key, as Realtors are invaluable guides who will provide you with detailed advice on how to search for and buy houses. After finding a Realtor, you should ask her to show you around Realtor.com, which allows you to search for home listings geographically, as well as by price, type of home and number of bedrooms and bathrooms. Realtor.com also has invaluable information on home financing, links to movers and tips on owning and maintaining your home. It's also a good idea to buy a map of the city where you're planning your home search. Sites like Google Maps and Mapquest can help you plan your search route, but nothing beats an old-fashioned foldable map for getting a sense of your potential commute and the layout of your future neighborhood. For that authentic explorer vibe, you can even tack it up on the wall and mark the locations of the homes you find listed online. Once you're actually on your search, always keep a pad of paper and a writing utensil with you. These are useful for jotting down homes you see with For Sale signs on their lawn. By the way, if you find a home for sale by a company other than your Realtor's, pass the address and phone number onto your Realtor so they can dig up the relevant information about the house for you. You should also keep your pad and pen with you once you actually start touring homes. Take notes of things you like and dislike about the homes you see; this is important because you're likely to look at a lot of homes, and they're likely to start running together in your mind. Taking notes will not only keep you engaged and interested in the homes you're looking at, and will give you a frame of reference when you think back over your search to start narrowing your choices.

March 29th Update.

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 16 Mar 2010 21:14:30 GMT

This week brings us the release of five reports that are considered relevant to mortgage rates but some of the data is considered to be very important and one is arguably the single most important data we see each month. There is relevant data being posted each day and it is considered a holiday week, so we can expect to see a fair amount of volatility in the markets and possibly mortgage rates the next few days. The first is February's Personal Income & Outlays report early tomorrow morning. This data helps us measure consumers' ability to spend and current spending habits, which is important to the mortgage market because of the influence that consumer spending related information has on the financial markets. If a consumer's income is rising, they are more likely to make additional purchases. This raises inflation concerns and has a negative affect on the bond market and mortgage rates. Current forecasts are calling for a 0.1% increase in income and a 0.3% rise in spending. March's Consumer Confidence Index (CCI) will be posted late Tuesday morning. This index gives us an indication of consumers' willingness to spend. Bond traders watch this data closely because consumer spending makes up two-thirds of our economy. If this report shows that confidence is falling, it would indicate that consumers are more apt to delay making large purchases. If the report reveals that confidence looks to be growing, we may see bond traders sell, pushing mortgage rates higher Tuesday morning. It is expected to show an increase from February's 46.0 reading to 50.0 for March. February's Factory Orders will be released early Wednesday morning. This data is similar to last week's Durable Goods Orders report, except that this report includes orders for both durable and non-durable goods, giving us a measurement of manufacturing sector strength. It is also the least important of this week's five reports. Unles s it varies greatly from forecasts of a 0.5% increase, I suspect that it will be a non-factor in the mortgage market. The Institute for Supply Management (ISM) will release their manufacturing index late Thursday morning. This index gives us an important measurement of manufacturer sentiment by surveying trade executives and is one of the more important of this week's data. A reading above 50 means more surveyed executives felt business improved during the month than those who said it had worsened. This month's report is expected to show a reading of 57.0, which would be a small increase from February's reading of 56.5. This means that analysts think business sentiment remained fairly close to last month's level. The biggest news of the week will come early Friday morning when the Labor Department posts March's Employment report, giving us the U.S. unemployment rate and the number of jobs added or lost during the month. This is an extremely important re port to the financial and mortgage markets. It is expected to show that the unemployment rate remained at 9.7% and that approximately 190,000 payrolls were added during the month. A higher unemployment rate and a smaller than expected payroll number would be good news for bonds and would likely push mortgage rates lower Friday. Overall, I expect to see the most movement in rates either Thursday or Friday. Friday is the most important day of the week with the employment numbers being released, but we will likely see a fair amount of movement in rates Thursday morning also. I am expecting tomorrow or Wednesday to be the calmest day of the week, but we should still see some changes to rates those days. In general, it will probably be pretty active week. Also worth noting is that fact that the stock markets will be closed Friday in observance of the Good Friday holiday, but the bond market will open for trading until noon. This will likely create additional volatili ty in bonds Thursday afternoon and especially Friday morning. Accordingly, it would be prudent to maintain contact with your mortgage professional if still floating an interest rate. If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers. ©Mortgage Commentary 2010

Fed purchased mortgage bonds... the saga continuew

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Tue, 16 Mar 2010 21:17:43 GMT

News Alert from The Wall Street Journal The Fed will end its purchases of $1.25 trillion of mortgage backed securities as scheduled amid indications a recovery is progressing, the central bank said following its March meeting. Rate will stay low for an “extended period.” Analysts have worried that the end of the Fed's mortgage purchase program could lead to an upsurge in mortgage rates. But that hasn't happened, even amidst months of well-telecast pronouncements that the program would end.

First-Time Home Buyer Tax Credit Extended For Armed Service Members

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 05 May 2010 09:28:01 GMT

First-Time Home Buyer Tax Credit Extended For Armed Service Members By Carla L. Davis May 4, 2010 The expiration date of the $8,000 first-time home buyer may have already passed for most, but there are some potential homebuyers who can still take advantage of this great opportunity. For those who are qualified service members, you have an extra year to cash in on the credit. Your new deadline is April 30, 2011. The government defines "qualified service member" as a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community." The reasoning behind this extension is simple. National Association of Home Builders Chairman, Bob Jones, says, "Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas. It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country." There has been another modification to the credit for members of the armed service. Currently, a buyer must repay the credit if they move out of their new home within three years. This particular contingency has been waived if the move is due to government ordered extended duty service. Buyers must meet the other qualification for the credit, however, including the income limits. These limits are set at $125,000 for single taxpayers and $225,000 for married taxpayers filing joint returns. You must be a first-time home buyer, which is defined as "a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse." Republished by permission from Realty Times.

Seniors Looking to Downsize, Seek Opportunities to Socialize in Urban Living Areas By Phoebe Chongchua

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 05 May 2010 09:31:10 GMT

Aging baby boomers want to feel connected. As many decide to downgrade the size of their current home, they search for a new one. However, it's more than just their living quarters that makes them want to buy. "I think previously there was this preconceived idea that senior citizens retire and they move to Florida or Arizona or they move somewhere to a senior citizen community," says Steve Matthews, a real estate industry expert and chair for the Montclair Senior Citizen Advisory Committee in New Jersey. But he says there's a changing mindset emerging. "Senior citizens no longer want to be in an isolated place." Many are selling their homes and looking for a community connection in the location where they plan to purchase their next home. "Like the rest of America, there was this movement going out toward suburbia. Now, there's a movement going back toward more urban areas and towns are starting to be challenged," says Matthews. His town, Montclair, is a 30-minute train ride from New York City. "So, it becomes a commuter town for people who work and it's always been known as a town where young families go and buy. But now we're seeing seniors who would previously move down to South Jersey or move somewhere else, choosing to stay closer to home," says Matthews. And that means that towns like Montclair need to understand the changing needs of its residents. There are multiple factors causing the desire for urban living. Extended family living under one roof and caring for each other, low-maintenance condos, and social connectivity are a few reasons that top the list. "Towns aren't used to having to provide other services for seniors. Many towns have always focused services toward children—school systems, park systems, and things like that. Now, towns are being challenged to provide support systems for seniors who are choosing to retire in place," says Matthews. As more seniors shop for smaller, easy-to-maintain homes, that puts them in the same market as first-time buyers. However, seniors often have one distinct purchasing advantage. "A lot of them are selling their home, so they're cash buyers and that makes them a stronger buyer in this market," says Matthews.

Green Roof Solutions Economically and Environmentally Rewarding By Peter L. Mosca May 12, 2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 12 May 2010 10:46:29 GMT

As energy costs continue to rise and sustainability becomes more and more of a prevalent concern, many business owners are looking for ways to be both economical, and environmentally friendly. One company recently announced a unique approach to help business owners find a sustainable green roof to suit their needs. Spartan Internet, in conjunction with Duro-Last Roofing, has created an online directory of contractors certified to install the Duro-Last reflective green roof. Duro-Last roofing systems are designed to accommodate specific needs and are pre-engineered and manufactured specifically to decrease waste and increase the durability and energy efficiency of a building. "Businesses are looking for more and more ways to increase their LEED score," said Ryan Vartoogian, President of Spartan Internet Consulting. "With our directory, it's easier than ever for business owners to find local contractors that are certified to install any Duro-Last reflective roof." Aside from savings on energy costs and increasing your LEED score, business owners can count on the Duro-Last roofing systems to be reliable, durable, resistant to high winds, waterproof and easily installed without disruption to daily operations. The Duro-Last prefabricated single-ply roofing system is ideal for virtually any commercial or industrial, flat or low sloped roof and comes with a 15-year warranty.

Debt Management for Homeownership By Carla L. Davis May 11, 2010

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 12 May 2010 10:47:30 GMT

Learning to manage your finances is a great first step towards owning the home of your dreams. Whether this is your first time to buy, or you are looking to move-up, managing your debt is important. Among the most important of the debt management qualities is holding yourself accountable. What does this mean, exactly? Being accountable means taking an honest look at your budget and your spending. The $5 latte every morning on the way to work, the cash withdrawals spent without record, or even the extra martini with dinner adds up to money spent, not saved. An easy was to increase your own accountability is to use a debit card and online banking for all of your purchases. Online banking is offered by nearly every banking institution, and allows you to access your account anytime, anywhere. Now you'll know if you are spending $100 a month on little extras. The next step in accountability is to create a monthly budget. On a sheet of paper write down each of your monthly expenses. These might include: rent or house payment, car payments, insurance, phone bills, cable and internet, alimony, child support, and student loans. It's time to take a hard look at what you think you are spending versus what your real expenditures are. If you can, don't forget to add up how much you spend on all the extras, such as nights out, entertainment, books, hair cuts, and household products. If you'd prefer to use an online calculator to show you a monthly budget, consider using financial guru Suze Orman's tools at Suzeorman.com.

Considering Short Sales

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 12 May 2010 10:48:41 GMT

In today's economic climate, many families are finding themselves in dire straights. The home that was once a blessing has now become a financial burden. In an attempt to avoid foreclosure, which can reap havoc on one's credit for years to come, homeowners are searching out details on short sales. In simple terms, a foreclosure is when, after defaulting on payments (typically after 3 months), an estate becomes the absolute property of the lender. And what's more, in some cases you, the homeowner, may also be responsible for "deficiency judgments." These mean if the sale of the foreclosed property doesn't satisfy the amount of the loan, you may be obligated to pay the difference. On the other hand, a short sale, according to MSN Money, is "the sale of a house for less than what the owner still owes on the mortgage. If the lender agrees to a short sale, the rest of the homeowner's debt typically is forgiven. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process." There are more reasons to avoid foreclosure than just your credit rating. A recent report from NeighborWorks America ® notes that other factors come into play in neighborhoods affected by foreclosures. These issues include such things as lowered property values, increased incidence of financial scams, youth stress and instability, and increased crime rates. The report notes, "Abandoned homes from the foreclosure crisis have a direct effect on the rise in crime in communities." And according to another study by Dan Immergluck of the Georgia Institute of Technology in Atlanta and Geoff Smith of the Woodstock Institute in Chicago, “When the foreclosure rate increases one percentage point, neighborhood violent crime rises 2.33 percent.” There are some prudent steps to take when considering a short sale. First, learn about loan modifications. Honesty is the best policy when it comes to lenders. Pick up the phone and call your lender, explain your situation, and see what your options may be that could allow you to stay in your home. The processes of foreclosure and short sale can be costly to lenders, and they may be willing to work out a payment schedule that will get you through this trying time. Second, consult with the experts. According to the National Association of Realtors, by using a qualified team of short sale professionals, along with a real estate attorney, you can ensure that you aren't taken advantage of during the short sale process. This team can help: * Provide you with a comparative market analysis (CMA) or broker price opinion (BPO). * Help you set an appropriate listing price for your home, market the home, and get it sold. * Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers). * Ease the process of working with your lender or lenders. * Negotiate the contract with the buyers. Next, prepare yourself -- and your potential buyers -- for a long selling process. Waiting for your lender’s approval of your short-sale package can take several weeks to months. Finally, a short sale is not the end all solution to your problems. Though there have been recent allowances made by the government under the Mortgage Forgiveness Debt Relief Act and the Debt Cancellation Act, debt forgiven by your lender may be considered income that taxes will have to paid upon. If you are having issues making your mortgage payments, be sure to speak to a licensed real estate professional about your options regarding debt programs and short sales. Copyright © 2010 Realty Times. All Rights Reserved.

Mortgage Rates at Lowest Level in Six Weeks By Realty Times Staff

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 12 May 2010 10:49:24 GMT

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending May 6, 2010, down from last week when it averaged 5.06 percent. Last year at this time, the 30-year FRM averaged 4.84 percent. The 15-year FRM this week averaged 4.36 percent with an average 0.7 point, down from last week when it averaged 4.39 percent. A year ago at this time, the 15-year FRM averaged 4.51 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, down from last week when it averaged 4.00 percent. A year ago, the 5-year ARM averaged 4.90 percent. The 1-year Treasury-indexed ARM averaged 4.07 percent this week with an average 0.6 point, down from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 4.78 percent. "Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005." "The homebuyer tax credit helped support home sales in March, and anecdotal reports point to strong April sales as well. Pending existing home sales rose for the second consecutive month in March to the strongest pace since October 2009, just before the original deadline for the credit, based on figures published by the National Association of Realtors®. Three of the four Census regions showed an up tick in sales, led by the South with a 12.7 percent gain, while sales in the Northeast fell 3.3 percent. To receive the federal tax credit, homebuyers had to sign contracts by April 30th and settle by June 30th of this year." Copyright © 2010 Realty Times. All Rights Reserved.

Where is Real Estate Headed?

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Wed, 12 May 2010 10:50:03 GMT

Many have watched the real estate market with bated breath, wondering what lies ahead. The Norris Group, a California-based company that produces an annual report on the state of real estate and predictions, provides some insight. The company recently released the Tip of the Iceberg report by Bruce Norris, an active investor, hard money lender, and real estate educator with 29 years of experience. While the report focuses on California, there are many other national predictions included. Here's a look at what Norris is predicting in the coming eight years. "Real estate isn't even the first domino. Everything that happens in real estate can happen because of other things," Norris said at a conference earlier this year. In this report, I'm looking at all those other things and finally seeing that they play a big part, if not the biggest part, in how things work out," said Norris. The report shows the various government programs for delinquent and financially challenged homeowners and reveals a disturbing fact. "All the delinquency trends for all the types of loans are up," said Norris. "It doesn't matter if it's prime or subprime." "The national average is 13.2 percent for total non-current (both delinquencies and foreclosures). California ranks at 15 percent, Illinois at 14 percent, Pennsylvania at 10.7 percent, and Florida, the highest, at 23.5 percent. "My friend Alex lives in Florida in Orlando and houses that were selling for $180,000 to $220,000, he's regularly buying for $20,000 to $22,000," said Norris. The national average for the total non-current FHA loans (including delinquencies and foreclosures) is 17.4 percent. California is at 9.7 percent, Illinois at 21.3 percent, Pennsylvania at 15.3 percent, and Florida is at 23.8 percent. Norris thinks this will provoke more usage of the 203(k) Mortgage by HUD (U.S. Department of Housing and Urban Development). The "Streamline (K)" Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. "They'll actually loan you more than the house is worth, intentionally," said Norris. "Right now it's only available for owner-occupants but I'm sure that's about to change," he said. "All of us who thought that we were going to see REOs (real estate owned by lending institutions) all over the place for the last few years are quite surprised," he said. "It's because there was intervention." But how will that intervention and the aging population impact us? The report states that having a Federal debt that is trillions of dollars (and growing) and the size of the baby boomer generation will cause big changes that affect finances and real estate. "You're going to expect higher taxes," he said. Norris predicts, maybe even up to 45 percent for top tax bracket in 2011 and possibly higher after that. "If we're going to try to resolve some of our problems and pay for stuff that's gone on in the past, I think you're going to have to say 'We're going to have to pay some higher taxes.'" Norris also predicts higher unemployment, aging consumers buying less and saving more which he says will mean more burden on the government due to fewer tax revenues and greater expense for government. Perhaps the good news is the prediction for consistently low interest rates. "This is one of the conclusions that I didn't think I was going to come up with. I really thought that we'd probably have some scary interest rates but I just don't think so. Without an overheated economy, I don't see the big inflation risk for the next period of time. I see the big picture that it could be very scary but for the length of time that I'm trying to cover in this report, I'm not as afraid of it as I thought I'd be," said Norris. He thinks over the next eight years, interest rates will be under 8 percent "and you may have times where they are as cheap as they are now." Norris anticipates milder price increases in real estate as well as a decline in ownership coupled with a constant inventory available. The report also points out something that buyers are already facing, "regulation of finance markets might make it harder to get finance." He predicts the median price to increase for California to approximately $460,000 in the beginning of 2018 due to factors such as migration. And if the employment conditions improve in the state, Norris thinks migration numbers will do even better, helped in part due to retirees moving into the state. Norris expects more emphasis on housing for seniors, which seems to be a trend in many states. "I view the next eight years as a pivotal time for us, as a country, to make sure that we don't end with bigger problems than we've got," said Norris. The good news is that Norris predicts less volatility in the real estate market and expects increases, albeit, not as drastic as in the past. Copyright © 2010 Realty Times. All Rights Reserved.

Real Estate Outlook: Bumpy Recovery

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 09 Aug 2010 13:16:22 GMT

What do you make of a market where pending home sales drop, as they did in the latest monthly survey, but many other real estate and mortgage indicators are trending positive at the same time? For starters, you can recognize it for what it is -- a fitful, bumpy recovery we've got underway. On pending homes sales, no question there's softness in the wake of the tax credit phaseout. But a national drop of just 2.6 percent in the National Association of Realtors' index wasn't all that dramatic. In fact, buried away in the pending sales statistics were some counter-trends that got virtually no press attention whatsoever. For example, several major markets are seeing significant increases in pending sales. Check out South Florida, which was ground zero for the housing bust. Pending sales of houses and condos in the greater Miami-South Dade area rose by nearly 41 percent year-over-year in the latest survey. Read More

Bathroom Remodels Becoming More Popular

Steven S. McMichael Realtor/Broker/ePro/ABR/First Time Homebuyer Specialist — Mon, 09 Aug 2010 13:18:21 GMT

While kitchens are still high on the interest list for buyers and homeowners, the National Association of Home Builders (NAHB) is reporting that remodeler survey respondents say that a bathroom remodel was one of their most common projects during the first six months of 2010--as much as 61 percent of their remodels were done on bathrooms. "In previous years, kitchen remodeling was reported as the most common activity by more than 70 percent of remodeler respondents," according to the NAHB news release. NAHB reported that its Remodeling Market Index sunk to 40.7 from 47.9 in the first quarter. The survey also showed a decline in larger remodeling projects "such as room additions, whole house remodeling, bathroom additions, and second story additions. But NAHB is forecasting encouraging news. "While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a robust recovery beginning early next year," said NAHB Chief Economist David Crowe. However, these market conditions are making now the right time to take on remodeling projects that can not only increase comfort and functionality but also add value to your home. No matter which room you're going to remodel, doing your homework and knowing exactly what you want will save you not only money but also potential headaches. Things like checking references and visiting some of the recently remodeled projects are a great way to determine if the company you plant to hire will be suitable for your needs. Neglecting to do this could mean that you bring in the wrong company and, worst case scenario, a simple job turns into months of work and extra expenses. Here are a few things to consider when remodeling. Some experts say, if you're planning to stay in the home for five years, remodel it how you like. In other words, put in the countertops that make you happy--even if they're not the most popular. Use the color paint that expresses your inner feelings. However, I always say, remember there's a balance. If you remodel and create something that is so unusual, you may run the risk of it not appealing to the masses and therefore you will have to find the few that are searching for that particular look. That doesn't mean you shouldn't design and decorate based on your likes, it's just a matter of considering how the remodel will impact you when it comes time to sell the home and then choosing the best option for you for both short and long term. 1. Write it down. Just like your goals in life are more likely to come to fruition when first penciled out on paper, your ideas for your remodeling project also need to be clearly spelled out. When you do this you are able to clearly see which projects you want to tackle first, how much money you can afford/want to spend on the remodeling projects, and if your goals conflict with your ultimate objectives. You will find clarity by writing down what you hope to accomplish. This step alone can turn the project into a success from the start. 2. Slow down. Don't rush into a project. If you just purchased a home, some experts recommend living in it a year before you start to knock out walls. Your taste and needs might change. Get to know your surroundings and then thoughtfully consult with design-build companies to help ensure the project's success. Visit other people's homes and see how they increased storage and used space-saving techniques in their design. I am frequently visiting remodeled homes and am amazed at the creative ideas that add functionality for the homeowner and aesthetic beauty. 3. Let there be light. Light and bright is a commonly used term when listing a home. It's popular because it's appealing to buyers. If you're in the design phase of your remodel, especially for a bathroom--but other areas too, be sure to make sure that you will end up with enough light. The folks over at HouseLogic.com concur. Making lighting a priority. "When it comes to adding creature comforts, your first thoughts might be multiple shower heads and radiant-heat floors. But few items make a bathroom more satisfying than lighting designed for everyday grooming," writes author and residential builder, John Rhia. 4. Keep it clean. One of my pet peeves is yucky bathroom air. Poor ventilation creates enormous problems in the future. Homes that were designed without bathroom windows that open can quickly develop mold, mildew, and stale air if there isn't a very good ventilation system installed. High-quality bathroom fans help. These are often not thought of because they're not obvious "fun toys" like heated floors, but bathroom ventilation systems that exhaust to the outside are vital. Consult with your remodeling expert for the best choice for your room. Before beginning any remodel, talk to lots of experts, get all your ideas out on paper, and prioritize wants and needs. Taking the time and steps to create a plan with your hired experts will ensure your needs and desires are met in a timely fashion. Copyright © 2010 Realty Times. All Rights Reserved.