Don't forget, you first-time buyers... if you are interested at all, now is the time!! the deadline is this year, and if not extended, that will be that for this great tax credit that does not have to be repaid (in years past, it did)... check out this article, and check in with me if/when you have questions... and want to know the local market conditions.
"First-Time Homeowners Offered Tax CreditsBy Holden Lewis, bankrate.com Published: 5/14/2009This year some first-time homebuyers will charge their down payments to the taxpayer.Buyers will be allowed to use their first-time homeowner tax credits as down payments when they get FHA-insured loans, Secretary of Housing and Urban Development Shaun Donovan announced this week. Depending on the buyer's tax-filing status and the price of the home, the tax credit can be as much as $8,000.
The National Association of Realtors hailed the announcement, and asked taxpayers to subsidize all home purchases, and not just for first-time buyers.
The decision to finance first-time homebuyers' down payments with tax dollars was a highlight of a week that saw little change in mortgage rates.
Mortgage rates have been remarkably steady in the last few weeks. The Obama administration successfully adopted a policy of driving mortgage rates down and keeping them there. Observers believe that the Treasury and Federal Reserve are keeping rates in a narrow range by buying mortgage-backed securities whenever rates threaten to rise.
Donovan boasted about the effort to keep mortgage rates low when he spoke this week before a meeting of the National Association of Realtors. "And we are taking action to further help the housing market recover," he said as he introduced the down payment subsidy.
The down payment initiative is built onto this year's first-time homebuyers' tax credit, in which qualified buyers can get an income tax credit of 10 percent of the home's price, or $8,000, whichever is less. The credit is half that for spouses filing separately, and the credit phases out for higher-income filers.
Under the plan announced by Donovan, buyers can get a piggyback mortgage or an unsecured bridge loan for the amount of the tax credit when they get a Federal Housing Administration-insured mortgage. The piggyback or bridge loan can take the place of a down payment. Typically, FHA-insured loans require a down payment of at least 3.5 percent.
Borrowers will be expected to pay off the piggyback or bridge loans when they claim the tax credit on their 2009 returns next year or their amended 2008 returns this year. To claim the tax credit, buyers have to buy by the end of 2009.
"We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network," Donovan told the Realtors. He cited a home builders' study that claimed that the tax credit will stimulate 101,000 sales to first-time buyers, and another 59,000 home sales to people who will be able to buy homes because first-time buyers bought their homes.
By using tax credits as down payments, buyers won't have to put some of their skin in the game by shelling out their saved-up cash to make down payments.
For years, the FHA grudgingly allowed down payment assistance programs, or DPAs, to operate. DPAs were a mechanism by which home sellers could indirectly fund buyers' down payments. A seller isn't allowed to supply the buyer's down payment money.
But DPAs exploited a loophole that allowed charitable organizations to make down payments for needy buyers. The DPAs accepted "charitable contributions" from sellers, then gave equivalent "donations" to the buyers to cover their down payments.
After years of griping about higher default rates on loans that used down payment assistance, the FHA persuaded Congress to ban DPAs last October as home sales were declining precipitously. Now it appears that the FHA will let the IRS replace down payment assistance programs.
The DPA business was dominated by two nonprofits: AmeriDream and Nehemiah. AmeriDream president Ann Ashburn told Bankrate: "By setting this policy, the FHA is tacitly acknowledging the mistake it made last October when it convinced Congress to ban charitable down payment assistance. That mistake cost hundreds of thousands of Americans the opportunity to become responsible homeowners, accelerated the decline in home prices, and likely delayed the housing market's recovery."
Ashburn added, "Down payment assistance must be a long-term, privately funded program, not a short-term subsidy funded by the U.S. taxpayer." She supports H.R. 600, a bill that would allow DPAs to resume their activities.
In response to the FHA's new down payment policy, the National Association of Realtors patted itself on the back. "Last year, NAR asked Congress to pass housing stimulus legislation, which passed and is beginning to show results," the Realtors' president, Charles McMillan, said."
http://www.frontdoor.com/Home-Finance/FirstTime-Homeowners-Offered-Tax-Credits/55087
Take care, and until next time,
Karena Jolley of the MendoGroup team
Coldwell Banker Mendo Realty Inc
lic 01482063
phone 707 354 2999
www.mendogroup.com
Wednesday, July 29, 2009
Wednesday, July 22, 2009
Okay, this one is a bit scary-- however, most of us experienced agents have come in contact with a property that left us wondering... obviously, it is so difficult because we are not experts!! and therefore see many situations where personal property is left behind, homes are damaged, etc... but we don't necessarily know what the story is behind the mess. Now, I can say that I have seen yellowing on walls before, but the older couple that had lived there were persistent smokers (the place smelled like old, stale cigarette smoke, too)-- so, sometimes there can be another explanation? But, that house certainly did not have yellowing sinks and showers, too! Bon apetit, and I'll try to find a "lighter" article for next time.
"5 Signs Your Listing May Have Once Been a Meth LabJuly 16, 2009 by Melissa Tracey By Melissa Dittmann Tracey
The New York Times ran an article this week (”Illnesses Afflict Homes With a Criminal Past” by Shaila Dewan and Robbie Brown) that details a story about a family who moved into a spacious home in Winchester, Tenn., only to soon start battling years of illness — from breathing problems to seizures and migraines to kidney problems.
Their home was making them sick.
Five years after moving into the home, the family discovered the home had once been used as a meth lab.
And apparently these contaminated residences are not all that uncommon. What’s more, some may even be hitting your local market.
“Federal statistics show that the number of clandestine meth labs discovered in the United States rose by 14 percent last year, to 6,783, and has continued to increase,” the New York Times reports.
View a U.S. Drug Enforcement Administration map of meth lab incidents by state to see how prevalent it is in your area: http://www.usdoj.gov/dea/concern/map_lab_seizures.html
Chemist Lynn Riemer Of The North Metro Drug Task Force provides the following list of signs a meth lab may have been present in a home:
1. Yellow discoloration on walls, drains, sinks and showers.
2. Blue discoloration on valves of propane tanks and fire extinguishers.
3. Fire detectors that are removed–or taped off.
4. Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.
5. Strong odors that smell similar to materials often found in a garage, such as solvent and paint thinner, or odors of cat urine or ammonia.
About 20 states have passed laws that require meth contamination cleanup. Cleanup can be costly, though. The family described in The New York Times article would need $30,000 or more to get the necessary cleanup, and that amount doesn’t even take into account their medical bills from living in a contaminated house for so long.
Have you ever come across a house you suspected was once used as a meth lab?"
http://styledstagedsold.blogs.realtor.org/2009/07/16/5-signs-your-listing-may-have-once-been-a-meth-lab/
Take care, and until next time,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
www.MendoGroup.com
http://mendogroup.blogspot.com/
dre# 01482063
"5 Signs Your Listing May Have Once Been a Meth LabJuly 16, 2009 by Melissa Tracey By Melissa Dittmann Tracey
The New York Times ran an article this week (”Illnesses Afflict Homes With a Criminal Past” by Shaila Dewan and Robbie Brown) that details a story about a family who moved into a spacious home in Winchester, Tenn., only to soon start battling years of illness — from breathing problems to seizures and migraines to kidney problems.
Their home was making them sick.
Five years after moving into the home, the family discovered the home had once been used as a meth lab.
And apparently these contaminated residences are not all that uncommon. What’s more, some may even be hitting your local market.
“Federal statistics show that the number of clandestine meth labs discovered in the United States rose by 14 percent last year, to 6,783, and has continued to increase,” the New York Times reports.
View a U.S. Drug Enforcement Administration map of meth lab incidents by state to see how prevalent it is in your area: http://www.usdoj.gov/dea/concern/map_lab_seizures.html
Chemist Lynn Riemer Of The North Metro Drug Task Force provides the following list of signs a meth lab may have been present in a home:
1. Yellow discoloration on walls, drains, sinks and showers.
2. Blue discoloration on valves of propane tanks and fire extinguishers.
3. Fire detectors that are removed–or taped off.
4. Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.
5. Strong odors that smell similar to materials often found in a garage, such as solvent and paint thinner, or odors of cat urine or ammonia.
About 20 states have passed laws that require meth contamination cleanup. Cleanup can be costly, though. The family described in The New York Times article would need $30,000 or more to get the necessary cleanup, and that amount doesn’t even take into account their medical bills from living in a contaminated house for so long.
Have you ever come across a house you suspected was once used as a meth lab?"
http://styledstagedsold.blogs.realtor.org/2009/07/16/5-signs-your-listing-may-have-once-been-a-meth-lab/
Take care, and until next time,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
www.MendoGroup.com
http://mendogroup.blogspot.com/
dre# 01482063
Tuesday, July 21, 2009
Lease Options, anyone??
These lease options can be a great deal, but are not the most common out there. Not every seller is comfortable with this option, and not every seller has the financial ability to offer this to a buyer-- but there can be incredible flexibility with the details of a lease-option, which of course I can go over with anyone who has questions :)
"Daily Real Estate News July 21, 2009 ShareLease-Purchases on the Rise One way that buyers without enough money to get a mortgage can purchase a home is with a lease-purchase agreement.
Usually, the terms of the deal include a lease and an option to buy with part of the rent going toward the downpayment. The forced savings helps buyers amass enough to buy the house in the specified time frame, usually three to five years.
Cindy Walker, an associate with South Island Real Estate in Melbourne Beach, Fla., recently helped a young couple negotiate such a deal. She received a rental commission for the lease arrangement, and she will get a sales commission if the purchase option is executed.
Some real estate professionals find this arrangement unacceptable, but Walker says, “I look at it as money in the bank."
She offers these tips for anyone contemplating using a lease-purchase option:
Don’t be afraid to ask the seller if the owner would accept a lease-purchase agreement. Sellers might find it attractive once they understand it will generate regular rental income. Negotiate how much money will go toward the downpayment and whether the buyer or the seller or both will handle maintenance and repairs. Avoid prepayment penalties. No prepayment penalty increases the incentive to do the deal quickly. In most cases, that’s a good thing from both the buyer’s and the seller’s points of view.
Source: Florida Today, Anne Straub (07/19/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009072103?OpenDocument
Take care, and talk to you later,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
www.MendoGroup.com
dre# 01482063
"Daily Real Estate News July 21, 2009 ShareLease-Purchases on the Rise One way that buyers without enough money to get a mortgage can purchase a home is with a lease-purchase agreement.
Usually, the terms of the deal include a lease and an option to buy with part of the rent going toward the downpayment. The forced savings helps buyers amass enough to buy the house in the specified time frame, usually three to five years.
Cindy Walker, an associate with South Island Real Estate in Melbourne Beach, Fla., recently helped a young couple negotiate such a deal. She received a rental commission for the lease arrangement, and she will get a sales commission if the purchase option is executed.
Some real estate professionals find this arrangement unacceptable, but Walker says, “I look at it as money in the bank."
She offers these tips for anyone contemplating using a lease-purchase option:
Don’t be afraid to ask the seller if the owner would accept a lease-purchase agreement. Sellers might find it attractive once they understand it will generate regular rental income. Negotiate how much money will go toward the downpayment and whether the buyer or the seller or both will handle maintenance and repairs. Avoid prepayment penalties. No prepayment penalty increases the incentive to do the deal quickly. In most cases, that’s a good thing from both the buyer’s and the seller’s points of view.
Source: Florida Today, Anne Straub (07/19/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009072103?OpenDocument
Take care, and talk to you later,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
www.MendoGroup.com
dre# 01482063
Next wave of foreclosures coming while Investors dive in...
What a crazy world we live in right now!! Here we are, with prices the best in years, and multiple offers on the lower priced homes right now... and the next wave of foreclosures looming at us. My hope is that we all learn something from these times, so that we are not doomed to repeat in 20 years or so!!
"Investors Drive Foreclose Prices Up Home shoppers in parts of the country with lots of foreclosures are finding it increasingly difficult to buy. Investors are bidding up prices thousands above the original asking price.
Federal legislation slowing the number of foreclosures is adding to the problem by reducing the number of homes on the market. For instance, in Las Vegas, one of the areas where the bidding problem is greatest, home inventories are down 10 percent since March, according to the Las Vegas Association of REALTORS®.
When a bidding war erupts, the problem is particularly difficult for traditional buyers because investors are usually cash purchasers. They can bid up a property without concern whether the appraisal will prevent them from getting a loan.
Experts say the problem is not unlike the situation at the height of the housing bubble. "This market is about as abnormal as the hypermarket that we came out of a few years ago," says Jay Butler, director of the Realty Studies program at Arizona State University.
Source: The Associated Press, Jonathan J. Cooper (07/20/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009072102?OpenDocument
Take care, and talk to you next time,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
faxwww.MendoGroup.com
dre# 01482063
"Investors Drive Foreclose Prices Up Home shoppers in parts of the country with lots of foreclosures are finding it increasingly difficult to buy. Investors are bidding up prices thousands above the original asking price.
Federal legislation slowing the number of foreclosures is adding to the problem by reducing the number of homes on the market. For instance, in Las Vegas, one of the areas where the bidding problem is greatest, home inventories are down 10 percent since March, according to the Las Vegas Association of REALTORS®.
When a bidding war erupts, the problem is particularly difficult for traditional buyers because investors are usually cash purchasers. They can bid up a property without concern whether the appraisal will prevent them from getting a loan.
Experts say the problem is not unlike the situation at the height of the housing bubble. "This market is about as abnormal as the hypermarket that we came out of a few years ago," says Jay Butler, director of the Realty Studies program at Arizona State University.
Source: The Associated Press, Jonathan J. Cooper (07/20/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009072102?OpenDocument
Take care, and talk to you next time,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
faxwww.MendoGroup.com
dre# 01482063
Wednesday, July 1, 2009
Wednesday in Real Estate
The wall next door is shaking as the construction workers intently continue with their remodeling job. The sheetrock, I fear, is taking a beating, though! Being in my office right now, subjected to the noise and shaking, is preferable to being outside in those hot, blistering temperatures. Just when it starts to feel warm in here, I stick my toe outside and am grateful all over again for an air-conditioned office that comes with coffee and cool water :)
Had to make a call earlier to a client, asking if his house has a sprinkler system (yes, and timers as well). So many things I try to remember about a listing that I have for sale, so that on a moment's notice, I can talk about it to an interested party... but there are always details that escape me. Good to check, and now I shall let the agent who asked the question know-- yes!
Lots of people out there looking for properties right now-- sometimes it can be tricky to get financing for some of these low priced fixers, but there are some great deals! http://www.ushud.com has a great ability to search for foreclosure and bank-owned homes, but if you want specific information for Mendocino or Lake Counties, just email me-- MendoGroup@gmail.com and I can set you up with an automatic email service that lets you know when those great buys come on the market (or you can go to http://www.mendogroup.com and search for properties).
okay, enough with the pitching. it's just that several people have told me in the last few days that they like searching both sites.
Had to make a call earlier to a client, asking if his house has a sprinkler system (yes, and timers as well). So many things I try to remember about a listing that I have for sale, so that on a moment's notice, I can talk about it to an interested party... but there are always details that escape me. Good to check, and now I shall let the agent who asked the question know-- yes!
Lots of people out there looking for properties right now-- sometimes it can be tricky to get financing for some of these low priced fixers, but there are some great deals! http://www.ushud.com has a great ability to search for foreclosure and bank-owned homes, but if you want specific information for Mendocino or Lake Counties, just email me-- MendoGroup@gmail.com and I can set you up with an automatic email service that lets you know when those great buys come on the market (or you can go to http://www.mendogroup.com and search for properties).
okay, enough with the pitching. it's just that several people have told me in the last few days that they like searching both sites.
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